1.

0 Executive Summary

Product Description

You Mug It's personalized hand painted porcelain mugs are made with high quality materials and
with excellent durability. It is smooth and molded with porcelain composite. It has a c-curved
handle for an easy comfort grip. It will easily stand out with your slogans, or unique text. Get
them for gifts, coffee shops, stores, restaurants, diners or use as a promotional product at an
affordable price. It is best served for decorations thus could be used in making and drinking your
coffee or any hot or cold beverages. Perfect for any occasion!

Management and Operations

You Mug It operates first in the start-up capital gathered from the management team behind the
company. The team buys pens mugs from the supplier and then finds potential customers by
wortd of mouth and through social media, and takes their orders. The orders are sent to the artist
who would later on hand paint the mugs based on the customers' choice of names, design and
color. After the mugs are painted, it would later be brought to the house of a team member to
bake the mugs and let it cool for stability, and wrap it in a gift paper and ribbon afterwards. After
the completion, the orders are then put into bags and delivered to the customers (rain or shine).
The orders are delivered within three to five days after the customers place their orders. When
the orders are delivered, the payments are then received, and the money is added to the collective
capital to be used again for future orders.

Cost and Profit Analysis

Mugs- P30.00 per mug

Pens- P115.00 per pen (any color)

Ribbons- P80-P85 per roll

Packaging- P12.00

Scissor- P15.00

Labor- P5.00 per mug

The personalized mugs are then sold at a price of P150.00 which gives us a profit of P92.00 per
sold mug.

2.0 Mission, Vision, & Culture

Mission

To inspire and bring back memories through the image of excellent products and meaningful
services - one person, one heart, and one mug at a time.

Vision

To be recognized as the best source of meaningful quality personalized mugs in our community.

Culture

An environment full of creativity driven by dedication, inspiration, and positivity.

3.0 Company Description

We, at You Mug It, sell uniquely personalized calligraphy mugs based on the concept of our
customers. Our mug designs typically includes names and phrases chosen by our customers that
serves as a remembrance, gift, and inspiration. Our teams makes sure that our products come
with a creative packaging, perfect for our customers' loved ones at any occasion, providing the
best hassle free service and delivery straight to our customers' doors. Our customers does not
have to do anything but wait until the product is delivered. Our company aims to provide
satisfaction and stress-free services, just like a coffee shop that everyone loves, but at the
comfort of our customers' home.

4.0 Opportunity Analysis and Research

4.1 Industry Analysis (According to Porter's Five Forces)

Threat of New Entrant (Low to Medium Pressure)

* Due to the expanding mug businesses in social media such as Facebook, Instagram, and
Twitter, new potential threats could enter and decrease profitability.
* Potential customers could show strong preference to other products coming from other existing
companies

* Capital requirements could possibly effect the production and profitability

* Due to few personalized and hand painted mug businesses in the local market, there is a low
chance or possibility of having a competitor that offers the same product that could potentially
threaten the production

* Brand name is still developing; not yet well-known

Power of Suppliers (Medium to High Pressure)

* Since You Mug It deals with a specific mug supplier coming from a small market, supplies
could still cut short.

* Due to bulk buying and frequent ordering of supplies, mugs could possibly have a low product
quality.

* Since the packagings are bought from a small market, wrappers could possibly differ from each
other, and supplies could cut short.

* Suppliers could raise the price depending on its availability and season

Power of Buyers (Low to Medium Pressure)

* Strong buyers or bulk buyers could pressure the team to lower prices and improve product
quality
* Possible high price sensitivity because some of the buyers are students

* Absence or lack of substitute mugs in the market could indicate low buyer power

* Since mugs are commonly found at home, and this generation knows art and calligraphy well,
buyers could possibly be well educated regarding the product

Threat of Substitutes (Low Pressure)

* Although there are other mug companies or competitors in the local market, competitors who
does personalized hand painted mugs are rare to find.

* There could be possible substitute products that could be given at a cheaper price, yet, with less
choices.

* There could be possible substitute products that could be given with more choices and faster
production, but at an expensive price.

* Substitutes that offers a packaging that suits the occassion or season is rare to find.

Competitive Rivalry (Low to Medium Pressure)

* Since the company is selling and promoting their products through the Internet, competitors
could possibly show and offer the same products;
* But, since most of the customers come from the local area, competitors from other locations
will find it hard to sell their products.

* Competitors who offer the same delivery service are hard to find.

4.2 Environmental Analysis

Micro-Environment:

* Social Factors: Since we, the You Mug It team consists of students in this generation, we could
effectively and easily promote the product through the word-of-mouth and use social media
networks as well as a form of communicating device for potential customers.

* Customer Factors: "No customer, no business." Customer satisfaction will be a target of You
Mug It. The company can adjust and improve customer satisfaction from time to time through
constructive criticisms coming from customers or buyers.

* Supplier Factor: Suppliers always work as equal partner and building relationships according
to mutual trust. A mug or packaging supplier can satisfy a market function when he creates a
new relationship with customer and partners.

* Employee Factors: Since You Mug It is a team, each member, as well as the laborer always
work as equal partners in order to produce well and reach customer satisfaction on time.

Macro-Environment:

* Social Factors: Customers get to choose their own designs, names and phrases to be written or
painted on mugs which will be packaged well and delivered staright to their homes, and be able
to pay on the day of delivery; hassle-free online transactions.

* Technological Factors: Although new technologies could be used as good communicating

devices, our developing company still would not be able to afford easier and convenient printing
technologies that could be offered by other big companies.

* Environmental Factors: Because of the paper-like packaging, our company could help the
environment through anti-plastic productions unlike other companies that use plastics and other
non-environmental friendly materials for their products/packagings.

4.3 Competitive Analysis

You Mug It may have a lot of competitors (big and small; physical or online shops) established
already that may give similar products and offers, but it still stands firm among others especially
in Laguna where we could deliver products personally that comes with a great packaging fit to
any occasion, unlike any other local mug sellers.

5.0 Marketing Strategy and Plan

5.1 Products/Services

You Mug It provides customers with products based on their choice of design, color, and choice
of names/phrases to be painted on the mugs that comes with a great packaging fit to any
occasion, delivered straight and personally to customers (rain or shine), depending on their
choice of date of delivery, and hassle free payment option. Customers do not have to go to banks
or remmittance centers to pay in advance because payments are made on the day of delivery,
personally, as well.

5.2 Pricing

Aside from being able to choose the design, color and names/phrases to be painted on the mugs,
and hassle free delivery and payment services, customers can also enjoy the price of P150.00 that
comes with a great packaging fit to any occasion or season it will be delivered.

Other than that, the customer would also enjoy the price because of the personal delivery service
provided by the team, and the customers can pay cash on the day of the delivery, personally. No
need to pay in advance.

5.3 Promotion

You Mug It team promotes its products through social media networks such as Facebook,
Instagram, and Twitter where our team can post pictures and updates and orders which can
potentially attract new customers.

5.4 Place

Since You Mug It does not have a physical location or shop, our customers could enjoy a hassle
free transaction through online or social media network communication and personal delivery
service.

Management and Operations

 Christine Guiruela
General Manager

Alea Angelika Ygay Seth Christian Regalado

Finance Officer Marketing Officer

Kathleen Mae Balatico Andrea Guelle Lazanas

Operations Manager Sales Manager
Basing on our charts, our General Manager will be Ms. Christine Guiruela, for having the
leadership, delegation and excellent communication skills towards other people. She will be the
one who will oversee daily operations of the business, ensure the creation and implementation of
a strategy designed to grow the business, and communicate strategies and results to the unit's
employees.

 Finance Manager will be Ms. Alea Angelika Ygay, for being so skilled in
Math, especially when it comes to the calculations of money. She will be
managing budgets, collating, preparing and interpreting reports, accounts,
commentaries and financial statements. She will undertake research into
pricing, competitors and factors affecting performance and will also be
carrying out business modelling and risk assessments.
 Operations Manager will be Ms. Kathleen Balatico because she has the
abilities to perform in a wide range of duties. She will be overseeing the
production of goods and/or provision of services. She has to make sure
that an organisation is running as well as it possibly can, with a smooth
efficient service that meets the expectations and needs of customers and
clients.
 Marketing Officer will be Mr. Seth Regalado because he has the
observational and creativity skills that are needed to know the right
marketing strategies to use. He will create and develop new innovative
ways to communicate the business message to their existing customers. He
will also evaluate the effectiveness of all marketing activity.
 Ms. Andrea Lazanas will be our Sales Manager for having the confidence,
consistency and loyalty in every work that she do. She will make sure that
the sales target will be achieved by successfully managing the sales team
through motivation, counselling and product knowledge education.

All in all, our General Manager will develop a plan and will hand it on to
our Finance Manager who will make a projected budget for the operations,
and then after that, the Operation Manager will make sure that the
products to be released will be of high quality and before releasing it to the
market, the Marketing Manager will think on the strategies that will be
effective to the consumers and then present it to our Sales Manager, then
the Sales Manager will meet the sales team and discussed with them the
target sales they have to achieved.
FLOW OF OPERATIONS

DEVELOP DEVELOP
FINANCING
PLAN STRATEGIES

BUY MATERIALS CANVASS BUDGETING

COSTING PRICING PRODUCTION

CUSTOMER
RESOLVE ADDRESS IT TO US NO
SATISFACTION
 YES

Research and Development

FEEDBACK
Our Marketing Officer will be the one assigned to have a study or research about the
opportunities, tactics or strategies that we can use in order to design, develop, and enhance our
product or processes. We will make sure to be updated on what is happening around us in order
to cope up with the demand and we will always be open for improvements on our products.

Inventory, Production and Quality Assurance

“You Mug It” personalized porcelain mugs are made with high quality and with excellent
durability. It is smooth and molded with porcelain composite. It has a c-curved handle for an
easy comfort grip. It will easily stand out with your slogans, or unique text. Get them for gifts,
coffee shops, stores, restaurants, diners or to use as a promotional product. We will make sure
that our inventory is always ready for orders, may it be rushed or bulked orders and our
production will be consistent when it comes to the quality of our product.
 FINANCIAL
ANALYSIS
AND
PROJECTIONS
 You Mug It

Pro Forma Income Statement

For the First Quarter Ended February 00, 2019

Gross Sales ₱30,000.00

Cost of Sales

Beginning finished goods inventory ₱-

Cost of goods manufactured ₱8,580.00

Transportation In 500.00

Net Cost of Manufactured 9080.00

Goods Available for Sale 9080.00

Ending finished goods inventory 0.00

Cost of Sales (9080.00)

Gross profit 20920.00

Operating Expense

Wage Expense 1000.00

Rent Expense 500.00

Supplies Expense 965.00

Total Operating Expense 2465.00

Operating Income ₱18,455.00

 You Mug It

Pro Forma Balance Sheet

As of Decemeber 31, 2018

Asset

Cash ₱18,610.00

Supplies 965.00

Total Asset 19,575.00

Equity

Partners' Equity ₱19,575.00

 You Mug It

Statement of Cash Flows

For the First Quarter Ended February 00, 2019

Cash flows from operating activities

Cash from clients ₱30,000.00

Payments to Suppliers (8,580.00)

Payment to Employee (1,000.00)

Payment for Supplies (965.00)

Payment for Oven Rent (500.00)

Payment for transportation In (500.00)

Net Cash Provided By (Used In) Operating Activities ₱18,455.00

Cash flows from Financing activities

Cash Investment by owners' 155.00

Net Increase in Cash 18,610.00

Cash, Beginning 0.00

Cash, End ₱18,610.00

 You Mug It

Sources and Uses of Cash Statement

For the Quarter Ended February 00, 2019

Uses of Cash

Partial Payment for Mugs ₱2,000.00

Partial Payment for Packaging 1200.00

Payment for Supplies 965.00

Payment for transportation 500.00

Payment for Ribbons 80.00

Payment for printing 100.00

Total Uses of Cash ₱4,845.00

Sources of Funds

To be financed 4845.00

Total Sources of Cash ₱4,845.00