HOT CHILE’ FACTORY

The chilli pepper (also chile pepper, chilli pepper, or simply chilli) is the fruit of plants from
the genus Capsicum, members of the nightshade family, Solanaceae. Chilli peppers which
originated in Mexico, are widely used in many cuisines to add spiciness to dishes. The
substances that give chili peppers their intensity when ingested or applied topically
are capsaicin and related compounds known as capsaicinoids.

 Business Overview
Chili factory is a very lucrative business. It has been in existence for a very long time and more
and more people have found it a very good means of livelihood. Our chile’ factory is a business
that will continue to exist in the future. It is a small retail business that stocks a range of needs
of every people. It is a good business because chili is the new “ panlasang pinoy” The
possibilities for expansion are chile’, it is one of the excellent not only in the local area but in
neighboring communities as well. Hot sauce businesses make hot sauces for people who like
their food with extra heat. The main factor of this is to be successful to introduce the acceptance
of the consumer. Brands vary in the amount of value and power they have in the marketplace.
For example, life brand chilli sauce is a well known in the existing market, when a consumer
knows that brand exists in the market, the brand is said to have high brand awareness. The
quality of chilli is also important, consumer will compare the ingredients, texture and etc with
other brand of chilli sauce. A brand is valued when consumers stay loyal to that particular to that
particular brand. Consumers don’t switch to other brands and they willing to wait even the store
runs out stock. A brand is perceived to have high value if the brand is of goods quality.
  Our vision statement
Our vision is to ensure that this business will be patronize our wide range of hot sauces –
we want to become a household name all over the world.

 Our mission statement

Our mission is to build a world – class hot sauce production company that will meet the
highest standards of excellence with superb product offerings.

 Who is the target market?

A hot sauce business’ ideal customer is someone who likes hot sauces and has some
discretionary income. Such a customer might be interested in trying a new hot sauce, and they’ll
have enough money to pay for a premium sauce.

 Our Target Market

Hot sauces are consumed by almost everybody in our planet as such, anyone who chooses to
establish a hot sauce production company in any part of the world is sure going to get good
returns on his or her investment as long as they are doing the right thing.
There is indeed a wide range of available customers, so our target market can’t be restricted to
just a group of people, but all those who love hot sauces and of course those who would want to
try it out. This is why we have been able to map out strategic locations all around Washington
MSA – District of Columbia where we will position our store. We are in business to produce a
wide range of hot sauces for the following groups of people;
Grocery wholesalers
Supermarkets
Specialty food stores
Foodservice contractors
Households
Everyone who resides in our target locations.

 Marketing Strategy and Sales Strategy

Before choosing a location and the kind of chilli garlic/hot sauce types to produce, we
conducted a thorough market survey and feasibility studies in order for us to penetrate the
available market in the cities where we intend positioning our business.
We have detailed information and data that we were able to utilize to structure our business to
attract the number of customers we want to attract per time and also for our products to favorable
compete with other leading hot sauce brands in the whole of the United States of America.
We hired experts who have good understanding of the industry to help us develop marketing
strategies that will help us achieve our business goal of winning a larger percentage of the
available market Washington MSA – District of Columbia and throughout the United States of
America.

 Our Competitive Advantage

Competitive advantage that we have is the vast experience of our management team, we have
people on board who are highly experienced and who can grow a business from scratch to
profitability. So also, the wide varieties of hot sauces that we produce, our large national
distribution network and of course our excellent customer service culture will definitely count as
a strong strength for the business.
Lastly, all our employees will be well taken care of, and their welfare package will be among the
best within our category in the industry. It will enable them to be more than willing to build the
business with us and help deliver our set goals and achieve all our business aims and objectives.

 Our Pricing Strategy

Our prices will conform to what is obtainable in the industry but we will ensure that within the
first 6 to 12 months, our products are sold a little bit below the average price of various hot sauce
brands in the United States of America. We have put in place business strategies that will help us
run on low profit margin for a period of 6 months; it is a way of encouraging people to buy into
our brand.
Payment Options
The payment policy adopted by Cheryl La Brown® Hot Sauce Production Company, LLC is all
inclusive because we are quite aware that different customers prefer different payment options as
it suits them but at the same time, we will ensure that we abide by the financial rules and
regulation of the United States of America.
Here are the payment options that Cheryl La Brown® Hot Sauce Production Company, LLC will
make available to her clients;
Payment via bank transfer
Payment with cash
Payment via credit cards
Payment via online bank transfer
Payment via check
Payment via mobile money transfer
In view of the above, we have chosen banking platforms that will enable our client make
payment for products without any stress on their part. Our bank account numbers will be made
available on our website and promotional materials.

 Startup Expenditure (Budget)

When starting a standard hot sauce production company, one is expected to spend the bulk of the
startup capital on the purchase of standard commercial kitchen utensils, gas cookers and leasing
a commercial kitchen facility. Asides from that, you are expected to purchase ingredients, pay
your employees and your utility bills.
These are the key areas where we will spend our startup capital;
The total fee for registering the business in the Ph – 50,000
Legal expenses for obtaining licenses and permits as well as the accounting services (software,
P.O.S machines and other software) – 600,000
Marketing promotion expenses for the grand opening of Cheryl La Brown® Hot Sauce
Production Company, LLC; in the amount of 3000,000 and as well as flyer printing (5000,000
flyers at per copy) for the total amount of – 8000,000
The cost for hiring Business Consultant – $5000,000.
Insurance (general liability, workers’ compensation and property casualty) coverage at a total
premium – 5000,000
Other start-up expenses including stationery (1000,000) and phone and utility deposits (600,000).
Operational cost for the first 3 months (salaries of employees, payments of bills et al) –
10,000,000
The cost for start-up inventory (ingredients and packaging materials et al) – $500,000
Storage hardware (bins, rack, shelves, food case) – 5.000,000
The cost for hot sauce making equipment – $5,020,000
The cost for store equipment (cash register, security, ventilation, signage) – $2000,000
The cost of launching a website – 100,000
Miscellaneous – $2000,000
We would need an estimate of sixty million pesos (P 60,000,000) to successfully set up our hot
sauce production/chilli garlic here in the Makati City, Philippines.
Generating Startup Capital for Cheryl La Brown® Hot Sauce Production Company, LLC
Cheryl La Brown® Hot Sauce Production Company, LLC is a privately registered business that
is owned by Mrs. Cheryl La Brown. She has decided to restrict the sourcing of startup capital to
3 major sources. These are the areas we intend generating our startup capital;
Generate part of the startup capital from personal savings and sell of stocks