The Zero Degrees @TheZeroDegrees @TheZeroDegrees

+639366031218 thezerodegrees@gmail.com

Owned by:

Dacer, April Jane

Delos Reyes, Jomard Sam

Fabria, Kristiana Gloria

Gica, Kenneth

Gongob, Angel Mae

Table of Contents
 Introduction

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

a pastry-based snack 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 that

goals and objectives were 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.

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 which is a center for business transactions.

Funding Requirements and Source of Funds

The estimated initial cost of the business venture is P750, these includes the

ingredients, materials and equipment needed for the operations. The business owners

estimated initial investment will also be P750. 72% of this will be allocated for the

purchasing of the materials and the 28% will be utilized for the cost of the equipment.

The remaining ₱ 213 (28% of the total funds), will be allocated for the equipment used

in the production.

The funds will be collected from each business owner. Each of the 5 business

owners will invest 20% as an initial investment. Since the business owners are still

students and do not earn an income, their parents will be considered as the business

creditors and will also be considered as the source of the funds. They are to settle these

accounts at the end of the 2-week business operation.

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 that juggles their time with school and the business. The
owners of the partnership are organized according to the various skills and abilities of

each partners.

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

 Executive Summary

Vision

A profitable business establishment bringing happiness through frozen treats by

2022.

Mission

Zero Degrees is student-formed business establishment dedicated to serve best

quality products for the satisfaction of the local community. As a producing company,

we aim to develop innovations in our processes and the product itself.

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 more and create new ideas for products

Wealth Improvement Approaches

In order to maintain a competitive advantage, we – the Zero Degrees will

continue to innovate products that are new in the market at the same time fits in the

taste of our target consumers. We will also create value for our customers that our

competitors cannot. Example is 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 position is in Magis Canteen which all of our target

consumers buys products, we take this as an advantage in our business position in the

market. 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 businesss especially in supplying
the needed material, supplies and equipments. One of our parties on supporting the

business are as follows:

A. Consumer

Our consumer or our target costumers are the whole Xavier University Senior

High School population. Since our main goal obviously is for our product to be sold, we

are not close to others who wants to buy our product besides the XU Senior High

School.

B. Supplier

We have various supplier since we brought our raw materials from different

merchandiser. One of them are Monster Kitchen, Ororama and SM Supermarket

C. Creditor

One of 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 will be the one

who will market our products.

 Environmental Analysis

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 these happens we can

create ideas and innovate it for a more unique product that are new in the market. Since

every trend is an opportunity for a new business then we really can’t avoid competitors

but it is a challenge instead.

Churro businesses have been rising in the past few years here in Cagayan de

Oro and it’s becoming a trend. We will take that advantage to offer this new product in a

new and creative way. In Cagayan de Oro, S&R – a membership-shopping club

modeled after the warehouse membership shopping chains introduced in the United

States and also offering piping hot New York style pizzas, calzones, churros, hotdogs,

cheeseburgers, blue bunny ice creams, clam chowder, rotisserie chicken & rice and

even coffee. – 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 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.

Another, 41% answered ₱150 above, 31% answered ₱101-₱150, 20% answered

₱50-₱100 and 8% answered ₱50 below as the ranges of their daily allowance. As a

result, 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. ₱100. Since the range ₱21 – 50 got

the highest, it only strengthens our decision that we can sell our product for ₱20.

As one of our questions in the questionnaires is about their pastry preferences,

42% answered donut, 29% answered churros, 9% answered cupcake and as their
preferred sweet pastry. 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 answerable by yes or no. First is about

their fondness of cold churros, 39% answered yes while 61% answered no. For us, this

is maybe because they haven’t tried one before. Second is about their preference to

buy innovated churros, 67% answered yes while 33% answered no. This results maybe

because they wanted to try our product as we also innovated it and put a twist.

On the other hand, when we asked them about which flavors do they prefer to

add in their innovated churros, 40% answered chocolate, 20% answered white

chocolate, 17% answered caramel, 14% answered strawberry and 9% answered others

as dark chocolate, mocha, chili flakes, cookies and cream, plain, calamansi, sour and

cream and matcha. For this we concluded that our customers most likely want to have

chocolate dip frozen. And when we asked them about their preferred, 34% answered

chocolate syrup, 20% answered rainbow sprinkles, 18% answered sugar, 14%

answered rice crispies, 9% answered none and 5% answered others as cinnamon,

marshmallow, chocolate chips, chili flakes, cheese and barbeque. We concluded,

mostly of our customers wanted their churro be topped with their favorite toppings and

look it attractive and delicious and some don’t.

Another, as we asked them how they wanted their churros to be served, 33%

wanted it to be spiral, 31% wanted it in a stick, 23% wanted it in bite size and 13%
answered others. For this we concluded that mostly of our customers would likely feel

that serving it in spiral form will be easier for them to eat it. Lastly, when we asked them

on how many pieces do they prefer to buy, 32% answered 1-3 pieces, 47% answered

7% answered 6-9 pieces and 14% answered 10 pieces above. This strengthens our

hopes that our product will be marketable and requested.

Since our customers do have different preferences in terms of different things,

we think that we should not only follow the trends but also the perspective of our valued

customers for this we can assure that our product will not only be requested at first but

on second, third and so on.

Competitor Analysis

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

similar product or service. 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:

Churros Delight is the only business establishment here inside the campus of

Xavier University that sells churros. This company is our main competitor. Since our

product is also a pastry then we also considered Waffle Time and the Magis Canteen as

a competitor because they sell a similar product.

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

 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 are also an estimate of 3,000

others in the market and this others consist of all the teachers and staff of Xavier

University, guests, parents and etc.

Market Position

HIGH QUALITY
15

10

LOW HIGH
0
PRICE 0.5 1 1.5 2 2.5 3 3.5 PRICE

-5

-10

-15 LOW QUALITY

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.

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 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 we believe that our product will stand out because of its uniqueness and

convenience. Churros are not yet that obtainable, meaning there are only limited stores

that sell this product. Because of the foreseen competition, it will help us to continue to

improve and innovate our products. In the same way, our competitors will also try its

best to improve its products.

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.
 Business Description

Product Description

The business’ offers churros that are a pastry-based snack as its initial product. It

will be served in four different flavors namely; classic, chocolate, white 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 frozen as to

present another edge of the product. 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 desserts into our own version and to

make that we will serve our churros cold and frozen. Why desserts? Well, it is because

desserts are well known to be packed with nutrients such as vitamins, fiber and

antioxidants that can be really helpful to a person’s diet. And also, it is researched that

desserts makes a person happy. With that, our products 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.

PRODUCT RAW MATERIALS

Chocolate Dipped Churros All Purpose Flour
 Salt
Butter
Brown Sugar
Eggs
Vanilla extract
Cinnamon
Cooking Oil
Rainbow Sprinkles
Melted Chocolate

White Chocolate Dipped Churros All Purpose Flour

Salt
Butter
Brown Sugar
Eggs
Vanilla extract
Cinnamon
Cooking Oil
Rainbow Sprinkles
Melted White Chocolate

PRODUCT EQUIPMENT TO BE USED

Chocolate Dipped Churros 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
- Used in measuring large amounts of dry ingredients.
Measuring Glass
-Used in measuring large amounts of liquid ingredients.
Measuring Spoon
-Used for measuring small amounts of dry ingredients and
very small amounts of liquids.
 White Chocolate Dipped Gas Stove
Churros -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
- Used in measuring large amounts of dry ingredients.
Measuring Glass
-Used in measuring large amounts of 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.

Size of the Business

As we start our business from a very small scale, our total assets and capital

would only sum up to a maximum of ₱1000.00. For this, we classify our business as a

micro enterprise. Moreover, as the five owners classify themselves also as employees

and as we identify our business as hybrid—as we turn raw materials into a tangible

product and as we provide intangible products to our customers— this strengthens this

classification.

As we classify our 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 take abroad view of our business.

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. Has a pleasing personality

4. Hardworking and industrious

5. Disciplined

6. Keen in his/her attendance

7. Knowledgeable of the activities in the kitchen

8. Able to perform well his/her duty as an employee

 Organizational Plan

Legal Form of the Business

Sanitary Permit
SEC Permit
SSS Permit
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 in mind. They will also share equal hours to render in the
business.

Organizational Structure
 KRISTIANA GLORIA P. FABRIA
General Manager

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

REYES GONGOB DACER
Financial Manager Purchasing Manager Marketing Manager Production Manager

Figure 1. Organizational Structure of the Business

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 still studying at Xavier University Ateneo de

Cagayan while running the business. Each partner owns 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 decision to be 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.

Jomard Sam Delos Reyes, the financial manager, is the one in-charge to

manage 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 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 ₱15/month as salary. Since the expected profit is

more or less than 100 pesos, so we consider to have an equal salary which has a total

of 75 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.

 Production Plan

Production Schedule (GICA)

Month Number of Units sold by Total monthly

selling 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 7200

Year Total yearly units

to be sold
2017 7 200
2018 7 200
2019 7 200
2020 7 200
 2021 7 200

Production Process (GONGOB)

Churros Steps and Procedures

Procedure Ingredients Equipment Duration

 In a deep frying  Water  Deep Frying 5mins.

pan over medium 2 ½ tbsp. Pan
heat, combine sugar  Gas Stove
ingredients.  salt  Wooden Ladle
 Bring to a boil and  2tbsp.
remove from heat. vegetable oil
 Stir in flour until  Vanilla Extract
mixture forms a  2cups all
ball. purpose flour
 2 large eggs
 Butter

 Heat oil for frying  Cooking Oil  Pastry Bag 20mins
in deep-fryer or  Pastry Tip *duration varies
deep skillet to 375  Tissue depending on how
degrees F (190 many pieces you’ll be
frying*
degrees C).
 Pipe strips of
dough into hot oil
using a pastry bag.
 Fry until golden;
drain on paper
towels.
 Melt Chocolate and  Chocolates  Bowl 10mins
White Chocolates  White  Tupperware
by boiling water Chocolates
  Dip Churros  Water
 Shower rainbow  Rainbow
sprinkles Sprinkles
 Chill  Refrigerator 10mins

Total duration of process: 45mins.

PRODUCT RAW MATERIALS

Chocolate Dipped Churros All Purpose Flour
Salt
Butter
Brown Sugar
Eggs
Vanilla extract
Cinnamon
Cooking Oil
Rainbow Sprinkles
Melted Chocolate

White Chocolate Dipped Churros All Purpose Flour

Salt
Butter
Brown Sugar
Eggs
Vanilla extract
Cinnamon
Cooking Oil
Rainbow Sprinkles
Melted White Chocolate
Equipment and Materials Needed for Production

PRODUCT EQUIPMENT TO BE USED

Chocolate Dipped Churros 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
- Used in measuring large amounts of dry ingredients.
Measuring Glass
-Used in measuring large amounts of liquid ingredients.
Measuring Spoon
-Used for measuring small amounts of dry ingredients and
very small amounts of liquids.

White Chocolate Dipped Gas Stove

Churros -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
- Used in measuring large amounts of dry ingredients.
Measuring Glass
-Used in measuring large amounts of 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.
Sources of Materials (DACER)

As we start our business, we gather the materials and equipment that we will use

in making our frozen dipped churros from different establishments.

Monster Kitchen is a baking and cooking supplies store located at Rizal Street,

Cagayan de Oro City. This is where we bought some materials such as vanilla extract,

melted chocolate and melted white chocolate. Also, we got there the equipment to be

used such as pastry tip, wire whisk, measuring cup, measuring glass, measuring spoon

mixing bowl and aluminum pan.

At Ororama Supercenter, located at J.R. Borja St, Cagayan de Oro, where we

also bought materials such as cinnamon, cooking oil, vegetable oil, salt, brown sugar,

butter and rainbow sprinkles. Flour was bought at La Victoria.

Estimated Production Cost (DELOS REYES)

A. Ingredients

Flour - ₱ 60

Oil - ₱ 40

White Chocolate - ₱ 121

Milk Chocolate - ₱ 110

Cinnamon - ₱ 70

Brown Sugar - ₱ 50

B. Materials

Piping Bag -₱8

Piping Tip - ₱ 23
 Transparent Wrapper - ₱ 55

₱ 537

Operation Plan

Evaluation of Supply (GONGOB)

Since our product is a pastry, one of major supplies are pastry ingredients such as

flours, eggs, sugars, butters, baking powder and baking soda but in our case our

ingredients are all purpose flour, sugar, egg, butter, cinnamon powder, vegetable and

cooking oil, chocolate and white chocolate . We will able to get these supplies with our

suppliers which are SM Supermarket, Ororama, 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 og the biggest grocery stores in Cagayan

de Oro and provides complete and quality kinds of grocery product.

Ororama
 Ororama offers variety of goods, household materials, commodities, dairy,

delicacies, beverages, poultry/ meat products. It is known because of its cheap price but

with 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 equipments you need. They also

provide baking lesson to those who are willing to learn how to bake.

Purchasing Procedures (DACER)

The first two years of our business will be our test year for the long run. 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, 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

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

purchased.
 Marketing Plan

Marketing Mix

As what the entrepreneurs have observed of the trend in the market and the

results of the survey, it showed that most are fond and are into sweet food. The product

is basically a pastry dipped in sweet flavors that will satisfy the sweet cravings of any

person.

Since the entrepreneurs are to sell the product within the university, the target

customers then are the students of Xavier University, mainly focusing on the Senior

High School students. The business will also cater students in the tertiary level and the

faculty of the institution.

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 are buying food 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.

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.
 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 cup designed with the business’s

trademark. This innovation is to make the product come in handy for the consumers.

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 50-200. 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.

Supply and Demand Curve

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 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.

Supply and Demand Curve

Demand Supply
60

50

40

30

20

10

0
₱5-20 ₱21-50 ₱51-100 ₱100 above

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:

Daily Allowance

₱50 below
20% 8% ₱50-100
₱101-150
₱150 above
41%
31%

Figure 1. The pie chart shows the daily allowance SHS students.

Lunch/Free time Go-to Places

Magis Canteen
SEC Mall
20% Classroom
Field
4% 46% Outside the
university
Others
25%
5%
 Figure 2. The pie chart shows the places where SHS students mostly eat.

Purchasing power

4% ₱5-20
15% 24% ₱21-50
₱51-100
₱100 above

57%

Figure 3. Shows the spending ability of the SHS students.

Pastry Preference

Churros
20% Donut
29%
Cupcakes
9% Brownies

41%

Figure 4. The figure shows the preference of SHS students in terms of pastry.

Are you fond of cold

churros?

Yes
No
39%
61%
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?

Yes
33% No

67%

Figure 6. The figure shows the response of students when asked if they are

interested to buy these innovated churros?

Flavor Preference

Chocolate
9% White Chocolate
14% Caramel
40% Strawberry
Others
17%
20%

Figure 7. The figure shows the response of students when asked about their

flavor preference?
 How do you want your churros to be served?

Bite Size
13% In a stick
23%
Spiral
Others
33%
31%

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% Choco Syrup
14% Peanuts
Rice Crispies
5% None
18%
Others
34%

Figure 9. The figure above shows the response of students about their preferred

toppings.
 How many pieces of churros do you prefer to buy?

14% 1-3 pcs

32% 3-6 pcs
7%
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

Marketing Expense