Zero Degrees

1
INTRODUCTION
Xavier University – Ateneo de Cagayan

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Description of the Business
Zero° degrees is a company selling cold and sweet pastry product. With the
slogan “Serving cold heaven at zero degrees”. The business’ offers churros that are
pastry-based snacks as its initial product but in the long run it aims to serve products that
are in line with pastry with the same goal of satisfying the customers.
Zero° Degrees is a private held business. It will be registered as general
partnership at Security and Exchange Commission. The owners of the partnership are
organized according to the various skills and abilities of each partners. The business is a
partnership affiliated under the Becker Corporation. As a partnership business, all
partners are equally responsible of the business and each has unlimited liability for the
debts and obligations it may incur. This business consists of 5 partners who have different
roles in the business.
The initial product of the business is a churro—a generally prisms in shape fried-
dough pastry-based snack—named Frozen Dipped Churros. These churros will be
dipped in two different flavors and will come with extra dips.
The business aims to offer products of satisfaction and in order to achieve the
goals and objectives set. Through innovation and quality service we will surely satisfy
customers. The business also aims to become a profitable, productive and efficient as it
serves its customers.

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Business Location
The business is located at the MAGIS canteen of Xavier University – Ateneo de
Cagayan. This location is a strategic place to conduct business because it is where most
of the students eat during lunch/break time. The MAGIS canteen is located inside the
university premises where students are in. In addition, Xavier University is located at
Divisoria, Cagayan de Oro City which is a center for business transactions.
Funding Requirements and Source of Funds
The initial investment to start the business would be ₱50,000. ₱25,000 will be
utilized to purchase the supplies needed in the production and ₱25,000 to purchase the
equipment needed to run the business.
The funds will be collected from each business owner. Each of the 5 business
owners will invest 20% of the needed investment as their initial investment. The business
owners should invest ₱10,000 each as contribution and initial investment.
Business Owners
The owners of the business Kristiana Gloria Fabria, Angel Mae Gongob, Kenneth
Gica, April Jane Dacer and Jomard Sam Delos Reyes, are SHS students of Xavier
University Ateneo de Cagayan. The owners of the partnership are organized according
to the various skills and abilities of each partners.

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NAME PROFESSION POSITION
Fabria, Kristiana Gloria ABM-A Grade 11 Student General Manager
Delos Reyes, Jomard Sam ABM-A Grade 11 Student Financial Manager
Dacer, April Jane R ABM-A Grade 11 Student Marketing Manager
Gongob, Angel Mae ABM-A Grade 11 Student Purchasing Manager
Gica, Kenneth ABM-A Grade 11 Student Production Manager

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Executive
summary

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Vision
It is the vision of Zero Degrees five years from now to become:
➢ A cost-efficient business establishment enabling us to offer quality products at an
affordable price.
➢ A business who excels in serving the community with products that meets their
preferences.
➢ A profitable business establishment bringing happiness through frozen treats by
2022.
Mission
Zero Degrees is a micro business establishment dedicated to serve best quality
products for the satisfaction of the local community.
Goals
➢ To become profitable, increasing revenue while limiting expenses
➢ To receive less or better none complaints from customers
➢ To increase productivity and become more efficient
➢ To become better as a business in serving beneficial products.
Objectives
➢ Increase sales by setting quotas every month
➢ Improve customer service quality through trainings
➢ Innovate and create new ideas for production

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Wealth Improvement Approaches
In order to maintain a competitive advantage, Zero Degrees will continue to
innovate and introduce new products to the market that fits the taste of our target
consumers. The business aims to create a sense of value to the customers that the
competitors cannot. The business seeks to impress and make the customers value the
business’ products through faster service, better customer service, more convenient
location, high quality product and other factor that distinguishes our business from others
and makes customers more likely to choose our product over others. Since our business
location is in Magis Canteen which all of our target consumers most of the time buy
products, this is an advantage for the business to be able to cater the market at a
convenient location. We will also improve our market share by diving equally the amount
of expenses since we are partnership type of business and maximize the utilization of
resources in the business. And by maximizing the utilization of resources, we aim to
produce big-time results with small means by focusing on two important concepts:
effectiveness and efficiency. Effectiveness is achieving our objectives for growing our
business; efficiency is doing it with as few but with quality of resources as possible.
Parties Supporting the Business
Parties supporting the business are one of the important factors in the growth of
the business. They are our advocate in running our business especially in supplying the
needed material, supplies and equipment. The parties supporting the business are as
follows:

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A. Consumer
Our consumer or our target customers are the whole Xavier University Senior High
School population. Since our main goal obviously is for our product to be sold, the
business is open for purchases from the college students and the faculty.
B. Supplier
We have various supplier since we brought our raw materials from different
merchandiser. We consider Monster Kitchen, Ororama Supercenter and SM
Supermarket as our main suppliers, for most of our materials are bought from these
establishments.
C. Creditor
Our most honorable creditors are Mr. & Mrs. Fabria, Mr. & Mrs. Gongob, Mr. &
Mrs. Gica, Mr. & Mrs. Dacer and Mr. & Mrs. Delos Reyes.
D. Employees and Staff
Kristiana Fabria, Angel Gongob, Kenneth Gica, April Dacer and Jomard Delos
Reyes are the owners and at the same time the employees since we are to handle the
business on hand. The same people will purchase the materials, produce the products
and sell it to the market.

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Environmental
analysis

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Trend in the Industry
Trend is a general direction in which something is developing or changing. Every
trend that breaks out is an opportunity for a business. When this happens, we can create
ideas and innovate it to introduce a new product. Since every trend is an opportunity for
a new business with the mindset of utilizing this opportunity, then we really can’t avoid
competitors.
Churro businesses have been rising in the past few years here in Cagayan de Oro
and it’s becoming a trend. We will take this as an advantage to offer this new product in
a new and creative way. In Cagayan de Oro, S&R – a membership-shopping club. – was
the first to offer the said churros with cinnamon and Bavarian Cream filled flavors.
Recently Churreria La Lola opened in SM Downtown Premier. They offer different kind of
dipped churros and flavored churros. These are the business that proves that Churros
are now rising up in the market. From a not-so-common snack to the favorite snack of
everyone.
With this, our business will be competitive in the market. The business will focus
on creating brand awareness and will innovate and do its job of serving satisfaction to
stand out from other similar business establishments.
Consumer Analysis
As we start our small business, we have identified the senior high school students
of Xavier University Ateneo de Cagayan as our target market— yet we do not disregard
the presence of the college students and the staffs and faculty members— since we are

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selling our product inside the university and our product, churros, can be sold at any age,
gender, strand, religion or ethnic group yet it is identified as a want since it is not a
necessity.
As we conducted our survey to 100 of our potential customers, 46% answered
MAGIS canteen, 5% answered SEC mall, 25% answered classroom, 4% answered field
and 20% answered outside the university as we asked them where their go-to places
during their lunch/ free time. Since, the MAGIS canteen got the highest percentage, this
strengthen our strategy to sell our product there.
When asked about the ranges of their allowances, 41% answered ₱150 above,
31% answered ₱101-₱150, 20% answered ₱50-₱100 and 8% answered ₱50 below.
Based on the results, we concluded that most students can afford our product since we
are selling our product at ₱20. Meanwhile, 24% of the respondents answered ₱5 – 20,
57% answered ₱21 – 50, 15% answered ₱51 – 100 and 4% answered when we asked
them about the range on how much they usually spend for snacks. The result strengthens
the decision to sell our product at ₱20.
The survey questionnaire also asked about the target market’s pastry preferences,
42% answered donuts, 29% answered churros, 9% answered cupcakes. Since the donut
got the highest percentage, we top off Dunkin Donut as our major competitor since they
are the number one seller of donuts that is very near the campus and since 20% of the
asked potential costumer answered that they go outside the university during lunch time.
As our product got the second highest of percentage, we concluded that it will be also
marketable and requested. Following these questions is two dangerous queries as it is

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answerable by yes or no. First is about their fondness of cold churros, 39% answered yes
while 61% answered no. The results of this question may have two implications, it maybe
because they haven’t tried eating one or just simply because they don’t like its taste.
When asked if they would prefer to buy innovated churros, 67% answered yes while 33%
answered no. The results tell us that the target market is interested to buy this product.
The target market is interested with convenient and affordable products. If we are
able to understand what the market wants, we could serve them what they will consider
as beneficial to them.
Competitor Analysis
In business, a company in the same industry or a similar industry which offers a
similar product or service are what call as competitors. We can’t really avoid competitors
because there are businesses that sells the same products as ours. We considered these
business establishments as our competitors and categorized them into two categories:
Direct and Indirect competitors.
Churros Delight is the only business establishment here inside the campus of
Xavier University that sells churros besides us. This company is our main competitor.
Since our product is also a pastry then we also considered Waffle Time and the MAGIS
Canteen as our indirect competitors because they sell a similar type of product.

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Competitor Analysis Tally
Day 1 Day 2 Day 3

Competitors (September 11, (September 12, (September 13,
2017) 2017) 2017)
CHURROS
DELIGHT 18 14 12
(Churros)
WAFFLE TIME
15 10 11
(Waffles)
MAGIS CANTEEN
STALL 2 0 2
(Donuts)
Market Forecast
POTENTIAL GROWTH 2017 2018 2019 2020 2021

CUSTOMERS
College 4% 5,000 5,200 5,408 5,624 5,849

students
Senior High 5% 4,000 4,200 4,410 4,631 4,863

School students
Others 2% 3,000 3,060 3,121 3,183 3,247
TOTAL 3.67% 12,000 12,460 12,939 13,438 13,779

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Market Forecast
6,000
5,000
4,000
3,000
2,000
1,000
0
College students Senior High School Others
students
2017 2018 2019 2020 2021
In the market forecast shown above, it shows the market forecast for our business
in five years. The example numbers indicate that there are estimate 5,000 college
students in the market, and that number is increasing at ten percent every year. Also
shown is an estimate of 4,000 Senior High School students in the market and that number
is increasing at seven percent every year. There is also an estimate of 3,000 others in the
market and this other consist of all the teachers and staff of Xavier University, guests,
parents and etc.

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Market Position
HIGH QUALITY
15
4 1
10 3
Waffle Time
5
Churros Delight
Magis
LOW HIGH
0 2
PRICE -15 -10 -5 0 5 10 15 PRICE
-5
-10
LOW-15QUALITY
Legend:
Zero Degrees Competitors Customers
The perceptual map shown above may help firms to develop and create a market
positioning strategy for the products and services. The perceptual map positioning is
based on the people’s perception towards the business and it is designed to help us
where would we like to position our business. According to the survey conducted, most
customers would avail products that are of quality even at a high price. Although 25%
responded that they prefer products at a much lower price.

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Market Strategy
In order to captivate our target market to avail our product, we will present these
Frozen Dipped Churros in a presentable and handy packaging for the consumers
convenience. In the long run, the business aims to develop more products with the same
concept of being served cold and frozen.
The product will be sold at Php 20 per serving, in which per serving has 5 pieces
of churros. It will be sold at this price in order to meet halfway with the purchasing power
of the target market.
As an entrepreneur, it is clear that we have a lot of competitors. These includes
the ABM and STEM students who will also try to entice the market and sell their product
like us. Any other business establishments in the university are also our competitors. But
our product will stand out because it is convenient and affordable. Churros are not yet
that obtainable, meaning there are only limited establishments that sell this product.
Because of the foreseen competition, it will help us to continue to improve and innovate
our products in order to stand out amidst the competition.
In order to promote the product to the public, online advertising will be done since
most of the students if not all are active in social media. Social medias like Facebook,
Instagram and twitter will be the main medium of advertising the product to the public.

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Business
description

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Product Description
The business’ offers churros, a pastry-based snack, as its initial product. It will be
served in three different flavors namely; classic, chocolate, and cookies and cream.
These churros are dipped in with the customer’s choice of flavor and will be sprinkled in
colorful sprinkles. The churros will be served cold, not at its usual. It will be sold at P20
per serving of 5 pieces that will surely satisfy the customers or better make them avail it
once again.
In this business, we try to innovate classic snack by making our own version, and
to make that we will serve our churros cold and frozen. Why this sweet snack? It is
researched that sweets makes a person happy. With that, our product would be perfect
to our target customers since our target customers are students and students nowadays
get stressed a lot because of school works and personal agendas. With all of these, our
products would surely satisfy you one way or another.
Equipment/Materials Needed
The business aims to produce quality products through the use of equipment and
materials with good quality standards. To ensure such quality, the entity shall purchase
equipment and materials at the preferred and available suppliers.

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PRODUCT RAW MATERIALS
Classics/Chocolate/Cookies and Cream All Purpose Flour

Dipped Churros Salt
Butter
Brown Sugar
Eggs
Vanilla extract
Cinnamon
Cooking Oil
Rainbow Sprinkles
Melted Chocolate
EQUIPMENT TO BE USED
Gas Stove
- an appliance used for cooking.
Deep Frying Pan
- a shallow frying pan used in frying.
Pastry Bag
- Used to pipe semi-solid foods by

pressing them through a narrow
opening at one end, for many purposes
including cake decoration.
Pastry Tip
- Decorating tips are the nozzles on the

end of a pastry bag that form our
Churros.
Wire Whisk
- Used to whisk or stir wet or dry

ingredients together
Measuring Cup

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- Used in measuring large amounts of

dry ingredients.
Measuring Glass

liquid ingredients.
Measuring Spoon
- Used for measuring small amounts of

dry ingredients and very small amounts
of liquids.
Mixing Bowl
- Used for mixing, whipping creams or

egg whites, preparing ingredients,
raising breads, or just storing food in
the refrigerator.
Refrigerator
- Used in storing and chilling the raw

materials and the final product.
Size of the Business
As we start the business from a very small scale, the total assets and capital would
only sum up to a maximum of ₱ 50,000 as an initial investment to start the business. For
this, we classify our business as a micro enterprise as it does not exist more than 3 million
pesos (Sec. 3. of R.A. 9501 otherwise known as the Magna Carta for Micro, Small and
Medium Enterprises (MSMEs). Moreover, the five owners classify themselves also as
employees. The business is considered hybrid —turning raw materials into a tangible
product and provide service to our customers through satisfying their wants/needs.

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We classify the business as a micro enterprise, we are qualified to register our
business as a Barangay Micro Business Enterprise (BMBE) which means that we may
avail of the following incentives provided by the government through R.A. 9178, otherwise
known as the “Barangay Micro Business Enterprises Act of 2002:
1. Income tax exemption from income arising from the operations of the enterprise
2. Exemption from the coverage of the Minimum Wage Law (BMBE employees will
still receive the same social security and health care benefits as other employees)
3. Priority to a special credit window set up specifically for the financing
requirements of BMBEs
4. Technology transfer, production and management training, and marketing
assistance programs for BMBE beneficiaries.
As we officially build our business, it is also important to divide it in economic
analysis so we can also see a more broad view of our business. It is also important to
communicate with the government in starting our venture.
Personnel Requirement
The company is looking for qualified personnel according to the standards listed
below:
1. Acquire skills in cooking and baking
2. Senior High School Graduate
3. Aged 18 years or older
4. Has a pleasing personality
5. Hardworking and industrious

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6. Disciplined
7. Keen in his/her attendance
8. Knowledgeable of the activities in the kitchen
9. Able to perform well his/her duty as an employee

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Organizational
plan

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Legal Form of the Business
Sanitary Permit

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SEC Permit

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SSS Permit

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Liability of the Owner
Since the owners of the business establishments are still minors and
students, funds to be used as capital will be borrowed from the business owners’ main
creditors, their parents. If anything happens in the business along the way, as partners
and equal owners of the business, each partner is responsible for 20% of the business’
liabilities. This includes debts that the business might have. All partners are equally
responsible of the business and each has unlimited liability for the debts and obligations
it may incur. All the business partners will share in the decision making while keeping the
business mission and vision in mind. They will also share equal hours to render in the
business.
Organizational Structure
KRISTIANA GLORIA P. FABRIA

General Manager
JOMARD SAM ANGEL MAE L. APRIL JANE R. KENNETH B. GICA

DELOS REYES GONGOB DACER
Financial Manager Purchasing Manager Marketing Manager Production Manager
Figure 1. Organizational Structure of the Business

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As the Operations Manager, Kristiana Gloria Fabria initiates and makes the
decisions. She shall make sure that the decision can help prosper the business. As the
Financial Manager, Jomard Sam Delos Reyes has the responsibility to engage in financial
analysis in such areas as forecasting, budgeting, engaging in cost reduction analysis, and
reviewing operational performance. As the Marketing Manager, April Jane Dacer has the
responsibility to handle all aspects related to promoting and selling the product. As the
Purchasing Manager, Angel Mae Gongob has the responsibility of making sure that all
raw materials needed for the production is complete. Lastly, as the Production Manager,
Kenneth Gica is the one responsible of producing quality products.
Role of the Business Owners
The owners of the business are students of Xavier University Ateneo de Cagayan.
With an equal responsibility as students, each partner will also own a fair share of 20%
of the business. This signifies that the initial capital of the business, profit and losses is
all divided equally. Subsequently, the decisions to be made are completely at discretion.
Since, there will be five of them; the partners will follow the most numbers decision and
will respect the decision made.
Kristiana Gloria Fabria, the Operations Manager, is the leader for the operation
and has the overall responsibility for the financial success of the business. She will play
the vital role at the business from planning and controlling the changes in the business to
overseeing inventory and distribution of goods. She also makes sure that the business
operations flow smoothly and economically and the other managers of different areas are
collaborating steadily.
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Jomard Sam Delos Reyes, the Financial Manager, is the one in-charge to manage
the money and watch over the assets of the business. He will function as the accountant
of the business, making records of every detail of every transaction of the business that
involves money and will analyze and review the financial reports to seek ways to reduce
costs justifiably. He will maintain a judicious characteristic as he ensures that the funds
are utilized in the most efficient manner.
April Jane Dacer, the Marketing Manager, is the one in-charge in handling all
aspects related to promoting and selling the product. She will prepare the promotions of
the business and is the main person involved in the selling of the product in different ways
such as uploading photos at social media like Facebook, Twitter, Instagram, etc. that will
be the main medium of advertising the product to the public since most of our potential
customers are active in social media.
Angel Mae Gongob, the Purchasing Manager, is the one in-charge of making sure
that all raw materials needed for the production is complete. She is tasked to spearhead
the purchasing of these materials from seeking and evaluating suppliers based on price
and quality to determining of quantity of the materials needed. She will also monitor and
forecast upcoming levels of demand and work together with the financial manager in
maintaining and reviewing records of transactions.
Kenneth Gica, the Production Manager, is the one in-charge of producing quality
products. He will plan and organize production schedules and oversee the production
process. He will ensure that proper hygiene is practiced, safety regulations are met; and
will determine and assure the quality standard of the product. He will also make sure that
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the production process is smooth. He will also collaborate with the purchasing manager
in selecting and purchasing of the materials needed.
Proposed Salary
Based on the profit we are expecting to gain in the business’s sales. Each partner
of the business will receive ₱200/month as salary. Since the expected profit is more or
less than 1,000 pesos, so we consider to have an equal salary which has a total of 1,000
pesos in all. Keeping in mind the other expenses in the operations of the business, we
had decided to save the 25% of the profit.

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Production
plan

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Production Schedule
Month Number of selling Units sold by Total monthly

days pack per day units to be
produced
September 20 30 600
October 20 30 600
November 20 30 600
December 20 30 600
January 20 30 600
February 20 30 600
March 20 30 600
April 20 30 600
May 20 30 600
June 20 30 600
July 20 30 600
August 20 30 600
TOTAL 240 360 7,200

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Year Total yearly units to be

sold
2017 7,200
2018 7,200
2019 7,200
2020 7,200
2021 7,200
Production Process
Churros Steps and Procedures
Procedure Ingredients Equipment Duration
➢ Water
➢ 2 ½ tbsp. sugar
➢ In a deep frying pan over ➢ salt
medium heat, combine ➢ 2tbsp. vegetable
ingredients. oil ➢ Deep Frying Pan
➢ Bring to a boil and ➢ Vanilla Extract ➢ Gas Stove 5mins.
remove from heat. ➢ 2cups all purpose ➢ Wooden Laddle
➢ Stir in flour until mixture flour
forms a ball. ➢ 2 large eggs
➢ Butter
➢

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➢ Heat oil for frying in

deep-fryer or deep skillet
to 375 degrees F (190 20mins
degrees C). ➢ Pastry Bag
*duration varies depending
➢ Pipe strips of dough into ➢ Cooking Oil ➢ Pastry Tip
on how many pieces you’ll
hot oil using a pastry ➢ Tissue
be frying*
bag.
➢ Fry until golden; drain on
paper towels.
➢ Melt Chocolate and

➢ Chocolates
White Chocolates by
➢ White Chocolates
boiling water ➢ Bowl 10mins
➢ Water
➢ Dip Churros ➢ Tupperware
➢ Rainbow
➢ Shower rainbow
Sprinkles
sprinkles
➢ Chill ➢ Refrigerator 10mins
Total duration of process: 45mins.
Equipment and Materials Needed
PRODUCT RAW MATERIALS
Classics/Chocolate/Cookies and All Purpose Flour

Cream Dipped Churros
Salt
Butter
Brown Sugar
White Sugar
Eggs
Vanilla Extract
Cinnamon

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Cooking Oil
Rainbow Sprinkles
Melted Chocolate
EQUIPMENT
Gas Stove
- an appliance used for cooking.
Deep Frying Pan
- a shallow frying pan used in frying.
Pastry Bag
- Used to pipe semi-solid foods by

pressing them through a narrow
opening at one end, for many
purposes including cake decoration.
Pastry Tip
- Decorating tips are the nozzles on the

end of a pastry bag that form our
Churros.
Wire Whisk
- Used to whisk or stir wet or dry

ingredients together
Measuring Cup

dry ingredients.
Measuring Glass

liquid ingredients.
Measuring Spoon

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- Used for measuring small amounts of

dry ingredients and very small
amounts of liquids.
Mixing Bowl
- Used for mixing, whipping creams or

egg whites, preparing ingredients,
raising breads, or just storing food in
the refrigerator.
Refrigerator
- Used in storing and chilling the raw

materials and the final product.
Sources of Materials
As we start our business, we gather the materials and equipment that we will use
in making our frozen dipped churros from different establishments.
At Monster Kitchen, a baking and cooking supplies store located at Rizal Street,
Cagayan de Oro City. This is where some of the ingredients needed in the production
such as cinnamon, vanilla extract, melted chocolate and melted white chocolate is
purchased. Also, materials needed such as pastry bag, pastry tip, wire whisk, measuring
cup, measuring glass, measuring spoon and mixing bowl were purchased in the same
establishment.
Eggs, all-purpose flour, cooking oil, salt, brown sugar, butter and rainbow sprinkles
were bought at Ororama Supercenter, located at J.R. Borja St, Cagayan de Oro.

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The equipment needed for the production such as gas stove, deep frying pan and
refrigerator will be bought at Asian Home Appliances, located at Toribio Chavez Street,
Tiano Brothers St, Cagayan de Oro City.
Estimated Production Cost
INGREDIENTS COST
All Purpose Flour ₱ 40.00
Cooking Oil ₱ 40.00
White chocolate ₱ 90.00
Milk Chocolate ₱ 180.00
Cinnamon ₱ 20.00
Brown Sugar ₱ 17.00
White Sugar ₱ 23.00
Salt ₱ 10.00
Butter ₱ 55.00
Eggs ₱ 70.00
Vanilla Extract ₱ 40.00
Rainbow Sprinkles ₱ 35.00

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Cookies ₱ 40.00
MATERIALS COST
Packaging ₱ 20.00
Piping Tip ₱ 23.00
Piping Bag ₱ 10.00
Transparent Wrapper ₱ 55.00
TOTAL ₱ 768.00/30 servings

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Operation
plan

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Evaluation of Supply
Since our product is a pastry, our major supplies are pastry ingredients such as flour,
eggs, sugar, butter, cinnamon powder, cooking oil, cookies, sprinkles, chocolate and
white chocolate. We are able to get these supplies from our suppliers; SM Supermarket,
Ororama Supercenter, and Monster Kitchen. Identifying the quality of our supplies is one
of the greatest factors in our business since our objective is to provide quality products.
Moreover, we have to determine the quality that these suppliers are providing.
SM Supermarket
SM Supermarket is a Filipino supermarket chain owned by SM Investments and is
operated through Super Value Inc. It is one of the biggest grocery stores in Cagayan de
Oro and provides complete and quality kinds of grocery product.
Ororama Supercenter
Ororama offers variety of goods, household materials, commodities, dairy,
delicacies, beverages, poultry/ meat products. It is known because of its cheap price but
also offers quality kinds of product.
Monster Kitchen
Monster Kitchen is the biggest and most well-known supplier when it comes to
baking. They provide complete baking ingredients and equipment you need.

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Purchasing Procedures
The first two years of our business will be the test years. The quantity and quality
of the materials and equipment will be adjusted after some calculations.
For the equipment that will be used such as gas stove, deep frying pan, pastry
bag, pastry tip, electric whisk, measuring cup, measuring glass, measuring spoon, mixing
bowl and plastic container will be bought at Monster Kitchen. We will purchase two double
burners gas stove, four deep frying pans and electric whisk, ten dozen pastry bags, a
dozen of pastry tip and aluminum pan and three sets of mixing bowl, measuring spoon
and mixing bowl.
For the materials such as flour, cinnamon powder, butter, cooking oil, vegetable
oil, salt, brown sugar, eggs, vanilla extract, rainbow sprinkles and melted chocolate and
white chocolate, it will be purchased on different establishments. These materials will be
obtained and purchased every week in order to preserve its quality.
Storage and Inventory Control
This includes processes and activities related to holding materials and the
processes of counting and transacting the materials as it moves in the production area.
The materials that will be purchased will be good for three days. The ingredients that will
be used in the production of the churros will be kept in a safe and accessible location.
This means that safety measures will be kept in storing these ingredients in order to
preserve its quality. These will be placed adjacent to where the production will be
conducted for easy access. These materials will be checked daily by the purchasing

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manager in order to determine the materials left and the materials that is needed to be
purchased.

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MARketing
plan

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Entrepreneurship I
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Marketing Mix
The marketing mix is a tool that will be utilized in this venture to position the product
in the market segment to effectively deliver it to customers and convince them about the
benefits of the product. The marketing mix includes the 7Ps:
1. Product
The product that will be introduced in the market is Dipped Frozen Churros. It is
a pastry that will be dipped in two different flavors such as chocolate and white chocolate
showered with sprinkles to add into its attractiveness. It will be frozen to preserve its
quality.
2. Place
The place we plan to sell this product is ideally just within the campus, since our
target market are the students of the university and because we are also students. The
ideal location is in MAGIS canteen because it is the most ideal place to sell, since students
come here often.
3. Price
The students of Xavier University are the target market of the business. Students
allowance estimated range from P50-150. The business goals to earn profit but making
sure to fit in the price to the capacity of the students to purchase. Still considering the cost
of production and other factors affecting the price. Based on the results of the survey,
most of the students responded that they buy food that costs more than Php 20, ranging
from Php 21-50. The product’s price is only Php 20 which is lower than the purchasing
power of the students. This gives us the perfect price to sell our products.

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4. Promotion
In order to promote the product to the public, online advertising will be done since
most of the students if not all are active in social medias. Social medias like Facebook,
Instagram and twitter will be the main medium of advertising the product to the public.

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5. People
The business is a partnership affiliated under the Becker Corporation. As a
partnership business, all partners are equally responsible of the business and each has
unlimited liability for the debts and obligations it may incur. This business consists of 5
partners who have different roles in the business. The Operations Manager is the leader
for the operation and has the overall responsibility for the financial success of the
business. He/She also makes sure that the business operations flow smoothly and
economically. The Financial Manager has the responsibility to manage money and watch
over the assets of the business. He/She will also function as the accountant of the
business, making records of every transaction of the business that involves money. The
Marketing Manager has the responsibility to handle all aspects related to promoting and
selling the product. He/She prepares the promotions of the business and is the main
person involved in the selling of the product. The Purchasing Manager has the
responsibility of making sure that all raw materials needed for the production is complete.
He/She is tasked to spearhead the purchasing of these materials. Lastly, the Production
Manager is the one responsible of producing quality products. He/She makes sure that
proper hygiene is practiced, production is smooth and makes sure that the products are
ready for selling.
6. Packaging
The product will be served in a paper cone designed with the business’s
trademark. This innovation is to make the product come in handy for the consumers and
visually appealing to the market.

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7. Positioning
The business has positioned itself as a sweet pastry that will surely satisfy the
cravings of the students for sweet food or may make them indulge more to it.
Target Market
The business’s target market are the Senior High School students of Xavier
University. The business will mainly focus on the SHS students but students in the tertiary
level and faculty of the institution are very much welcome to avail our product. The SHS
is divided into five strands namely; STEM, ABM, HUMSS, GAS and Tech-Voc. The target
market’s age range is from 15-19 years old.
Based on the survey conducted, the SHS students’ allowance everyday ranges
from Php 50-150. This indicates that their purchasing ability is also within the same range.
In addition, a lot answered that they spend Php 21-50 for their snacks every day. This
means that most students are able to buy products that costs ₱20 or above.
Supply and Demand Analysis
According to the survey conducted by the business owners, 67% of the 100
respondents stated that they are willing to buy this innovated product of the business. In
addition, an observation analysis was also conducted through observing the behavior of
the market to the competitors of the business. The tally was moderate understanding the
context that it was lunch time. These gives us the assumption that the demand for churros
are high. On the contrary, even with a high demand there is only one business in Xavier
University that sells churros and 2 businesses are selling pastry-based products that is

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similar with the business’s churros. This gives us the assumption that the supply of
churros in XU is limited.
The table below summarizes the assumptions and survey results for demand and
supply of churros in the market. This assumption was based on the observational survey
conducted.
Supply and Demand Curve

SUPPLY DEMAND
40
35
30
25
20
15
10
0
10 20 30
The graph above explains that the supply the business offers depends on the
demand of the market at a certain price. In order to meet halfway with the demand of the
market and to be able to supply their needed quantity, the market and the entrepreneur
should come on an agreement about the product’s price. The table shows that to attain
market equilibrium, the price should be at ₱20.

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Survey Observation
Our product is dipped churros, the market sees this product as a want since sweet
pastries in general are not essential in our daily lives in terms of types of food. The
importance of the product is to introduce a new type of sweet pastry here in Xavier
University. According to the results of the survey, donuts are the most go-to sweet pastry
that students buy, this gives us the assumption that churros are not that known yet. We
believe that this is a great alternative to the snacks being sold currently in the canteen
and in the SEC mall since the product is new, affordable and satisfying at the same time.
Although, 31% of the survey respondents stated that they are not fond of cold churros
that is maybe because they still haven’t tried eating one. 67% of the respondents stated
that they are interested and would prefer to buy our innovated churros. The survey results
implicitly show that most SHS students are into sweets and to serve the purpose of the
business and to satisfy their sweet cravings we introduce this new product that is
appetizing, innovated, convenient and affordable for everyone.
The business owners conducted an environmental analysis through survey
questionnaires given to SHS students from the strands; ABM, STEM, HUMSS and GAS.
These strands were chosen because students from these strands are always in the
university, unlike the TECH-VOC students who are in another campus. Below are the
results of the survey conducted:

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50
Daily Allowance
₱50 below
20% 8%
₱50-100
41% ₱101-150
31%
₱150 above
Figure 1. The pie chart shows the daily allowance SHS students.
Lunch/Free time Go-

to Places
Magis Canteen
20% SEC Mall

4% 46%
25% Classroom
5%
Field
Figure 2. The pie chart shows the places where SHS students mostly eat.
Purchasing power
4% ₱5-20
15% 24%
₱21-50
₱51-100
57% ₱100 above
Figure 3. Shows the spending ability of the SHS students.

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Pastry Preference
Churros
20% 29%
Donut
9%
Cupcakes
42% Brownies
Figure 4. The figure shows the preference of SHS students in terms of pastry.
Are you fond of

cold churros?
39% Yes
61% No
Figure 5. The figure above shows the response of students when asked if they are fond of cold
churros?
Do you prefer to buy innovated churros?
33%
Yes
No
67%
Figure 6. The figure shows the response of students when asked if they are interested to buy
these innovated churros?

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Flavor Preference
Chocolate
9% White Chocolate
14% 40% Caramel
17%
20% Strawberry
Others
Figure 7. The figure shows the response of students when asked about their flavor preference?
How do you want your churros to be served?
13% 23% Bite Size

In a stick
33% Spiral
31% Others
Figure 8. The figure shows the response of students when asked about how they want their
churros to be served.
Additional Toppings
Rainbow Sprinkles
Sugar
9% 20%
14% Choco Syrup
5% Peanuts
18%
Rice Crispies
34%
None
Others
Figure 9. The figure above shows the response of students about their preferred toppings.

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How many pieces of churros do you prefer to

buy?
14% 1-3 pcs

7% 32%
3-6 pcs
6-9 pcs
10 pcs above
47%
Figure 10. The figure above shows the response of students of how many pieces of churros they
are willing to buy.
Focus Group Discussion
Results:
In order to get feedback and suggestions from our target market on what they think
about our product, focus group discussion was conducted. We showed a picture of our
product and gave free taste.
Here are some of their suggestions:
“I think sulit siya bay for ₱20.”
“Murag dark ra kayo iyang color.”
“Mas chada siguro kung dili ang whole churro inyong i-dip sa chocolate para mao ang
hawiran.”

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“Daghana pa inyong chocolate.”
“Lami siya bay, mupalit jud ko.”
Marketing Expense
MONTH MATERIALS COST
September 2017 Tarpaulin ₱ 50.00
October 2017 - -
November 2017 Poster ₱ 30.00
Promotional Posters and

December 2017 ₱ 100.00
Decorations
January 2018 - -
Valentine’s Day
February 2018 ₱ 100.00
Decorations
March 2018 - -
April 2018 - -
May 2018 - -
Back to School
June 2018 ₱ 150.00
Decorations
July 2018 - -
August 2018 Tarpaulin ₱ 50.00
TOTAL ₱ 480.00

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Financial
plan
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I. Total Projected Cost
Pre-operating Expenses
Business Permit Php. 3,000.00
Sanitary Permit Php. 1,000.00
Tools:
• Piping Tip (2) Php. 25.00
• Sifter (1) Php. 50.00
• Small Bowls (3) Php. 100.00
• Scissors (1) Php. 20.00
• Plastic Container (5) Php. 120.00
• Cooler (1) Php. 200.00
• Deep Frying Pan (2) Php 200.00
• Pastry Bag (2) Php 50.00
• Wire Whisk (1) Php 100.00
• Measuring Cup (1) Php 30.00
• Measuring Spoon (1) Php 20.00
Equipment:
• Refrigerator Php 4,000.00

• Gas Stove Php. 1,000.00
Total Pre-operating Expense Php 9,915.00
Marketing Expenses
September Php. 50.00

October -
November Php. 30.00
December Php. 100.00
January -
February Php. 100.00
March -
April -
May -
June Php. 150.00
July -
August Php. 50.00
Total Php. 480.00

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57
Administrative Expense
September Php. 1,000.00

October Php. 1,000.00
November Php. 1,000.00
December Php. 1,000.00
January Php. 1,000.00
February Php. 1,000.00
March Php. 1,000.00
April -
May -
June Php. 1,000.00
July Php. 1,000.00
August Php. 1,000.00
Total Php. 10,000.00
II. Initial Investment
The company’s initial investment is P50,000 which will be based on the

expenses. Therefore, each member will personally contribute P10,000
each.
Organization Expense
Pre-operational Expense Php. 6995.00
Marketing Expense Php. 400.00
Administrative Expense Php. 10,000.00
Depreciation Expense Php. 1,000.00
Stall Rent Php. 4,000.00
Php. 22,395.00
Contributors
Gica, Capital Php. 10,000.00

Gongob, Capital Php. 10,000.00
Dacer, Capital Php. 10,000.00
Fabria, Capital Php. 10,000.00
Delos Reyes, Capital Php. 10,000.00
Total Php. 50,000.00

Senior High School
Entrepreneurship I

Zero Degrees

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1

Xavier University – Ateneo de Cagayan

Description of the Business

Zero° Degrees is a private held business. It will be registered as general

partnership affiliated under the Becker Corporation. As a partnership business, all

roles in the business.

dough pastry-based snack—named Frozen Dipped Churros. These churros will be

serves its customers.

Xavier University – Ateneo de Cagayan

The business is located at the MAGIS canteen of Xavier University – Ateneo de

Divisoria, Cagayan de Oro City which is a center for business transactions.

Funding Requirements and Source of Funds

equipment needed to run the business.

owners should invest ₱10,000 each as contribution and initial investment.

to the various skills and abilities of each partners.

Xavier University – Ateneo de Cagayan

NAME PROFESSION POSITION

Fabria, Kristiana Gloria ABM-A Grade 11 Student General Manager

Delos Reyes, Jomard Sam ABM-A Grade 11 Student Financial Manager

Dacer, April Jane R ABM-A Grade 11 Student Marketing Manager

Gongob, Angel Mae ABM-A Grade 11 Student Purchasing Manager

Gica, Kenneth ABM-A Grade 11 Student Production Manager

Xavier University – Ateneo de Cagayan

Xavier University – Ateneo de Cagayan

It is the vision of Zero Degrees five years from now to become:

➢ A cost-efficient business establishment enabling us to offer quality products at an

➢ A profitable business establishment bringing happiness through frozen treats by

Zero Degrees is a micro business establishment dedicated to serve best quality

products for the satisfaction of the local community.

➢ To become profitable, increasing revenue while limiting expenses

➢ To receive less or better none complaints from customers

➢ To increase productivity and become more efficient

➢ To become better as a business in serving beneficial products.

➢ Increase sales by setting quotas every month

➢ Improve customer service quality through trainings

➢ Innovate and create new ideas for production

Xavier University – Ateneo de Cagayan

Wealth Improvement Approaches

In order to maintain a competitive advantage, Zero Degrees will continue to

resources in the business. And by maximizing the utilization of resources, we aim to

Parties Supporting the Business

Xavier University – Ateneo de Cagayan

merchandiser. We consider Monster Kitchen, Ororama Supercenter and SM

D. Employees and Staff

and sell it to the market.

Xavier University – Ateneo de Cagayan

Xavier University – Ateneo de Cagayan

Trend in the Industry

Trend is a general direction in which something is developing or changing. Every

stand out from other similar business establishments.

Xavier University – Ateneo de Cagayan

As we conducted our survey to 100 of our potential customers, 46% answered

strengthen our strategy to sell our product there.

the decision to sell our product at ₱20.

marketable and requested. Following these questions is two dangerous queries as it is

In business, a company in the same industry or a similar industry which offers a

Direct and Indirect competitors.

Xavier University – Ateneo de Cagayan