I.

Introduction

1. Executive Summary

1.1 Description of the Business and Business Concepts

Snacks and chips are found in every store here in the Philippines. They are affordable and can
easily be eaten. Snacks and chips are commonly eaten if you’re hungry and want something to snack on.
There are times when you can't seem to finish the chips you just bought, probably because you got tired of
the taste. You only bought it because you wanted to taste it. Now you want a different snack, but then you
have to buy another snack. That's where the idea of mixed snacks comes in. Mixed snacks are different
snacks or chips mixed in the same container or packets. These are more convenient for people who want
to try a variety of snacks at the same time and for a definite price.

1.2 The Opportunity and Strategy

With the school canteen closed, our business would be a big opportunity for students who order
snacks outside the school and want to buy affordable chips for a low price. The students and staff will be
our target market in this business. We distributed a survey to staff and students in which they will choose
the snacks and flavors they prefer. This is a strategy that would help us in knowing what snacks and
flavors to purchase for us to sell later on.

1.3 The Target Market and Population

The target markets of this business are the students and staff members of Casa Del Niño Science
Highschool - Laguna. Our primary market consists primarily of junior and senior high school students, as
well as staff members. During the morning sessions, the school has an estimated 400 students on campus,
not including the school staff.

1.4 The Competitive Advantages

Food Packies offers a convenient way of eating your all-time favorite chips at an affordable price.
Yes, there are many stores that sell chips so what makes us better? It is the advantage of eating a variety
of snacks for almost the same price you would pay to buy just one snack. By cleaning the area and
wearing masks, aprons, and hairnets with alcohol and tissues on hand, the entrepreneurs will also ensure
that their method of repacking keeps the food clean and the packets sanitized. And we will make it certain
that the crispiness of the chips is maintained throughout the repackaging process.
1.5 The Economics, Profitability, and Harvest Potential
Since the entrepreneurs haven’t tried selling yet, they still don’t know the number of packets sold
and their cost each day. The entrepreneurs' goal though, is to sell 15-20 packets per day, to be sold at
₱25.00 - ₱30.00 each pack. It took a process to buy and then compute the needed supplies. The cost of the
chips alone costs ₱235.00 with a total of 720g, and the packaging costs ₱109.00, each piece costs about
₱2.18 carrying 50g. For every 720g of chips, only 14 packets will be produced.

To start off the computation, we must first get the cost per gram. To determine the cost per gram,
divide the costs of chips (₱235.00) by the chips’ total gram(720g), we get 0.33¢ per gram. A packet can
hold 50 grams, to get the cost of chips, multiply the 0.33¢ by 50 grams, we get ₱16.50. The packaging
costs ₱109.00 for 50 pieces, so each packet costs ₱2.18. So the cost per pack will cost ₱18.68 or ₱17.

For the time being, the team has agreed to make a 30% profit. To get that we will multiply the
cost per packet by 1.30, which equals ₱24.28, but will be rounded off as ₱25.00. To get our total amount
of sales, we will then multiply 14 packets by ₱25.00, the cost per packet. ₱350.00 is our total amount of
sales. To get our cost, we will multiply 14 packets by ₱18.68, the cost per packet without the profit.
₱261.52 is our cost but rounded off as ₱262.00. The profit will be ₱88.00 for every 14 packets sold.

1.6 The Team

This team of entrepreneurs has a set of individual skills that are essential for the fruitful success
of this business. As the lead entrepreneur, she brings the team together with her compassionate and
light-hearted attitude along with her time management and leadership abilities, which make her
teammates more cooperative, committed, and responsible for the tasks entrusted to them. The
entrepreneur will purchase all of the necessary products and supplies that will be sold later in the business
and the neat design that would impress the customers. The other entrepreneur will keep track of our
company's expenditures and profits. While the other entrepreneur will negotiate or deal with the
customer's wants in order to persuade them to purchase the product. The team will prepare, and distribute
the products to be sold. Everyone will be assigned tasks, which he or she must complete to the extent of
their abilities until the end of this business.

1.7 The Offering

If the business becomes a success, the team of entrepreneurs will invest additional money to
improve the company even further. So that they can add more varieties of chips and add refreshments.
The team would also like to open a store in order to earn additional funds and fame and demonstrate the
success of this business.
2. The Industry and the Company and its Product(s) or Service(s)

2.1 The Industry

Several schools have not been able to serve snacks and food to students due to the pandemic.
Because of this, students either order food online or bring snacks from their homes. Although there is
nothing wrong with this, students have to spend a large amount of money just to snack on something. This
includes the price of the food and its delivery fee. Students tend to bring a large sum of money just to eat
snacks and other foods. Because of this, parents have to work harder in order for students to eat and not
hunger during break time. The entrepreneurs decided to make a business that would accommodate the
student’s needs without spending too much money. Casa Del Niño Science Highschool was the best
option because the school currently has no canteen and a few stores are only operational. The team plans
to go room-to-room to sell their products to avoid students from going to the school grounds so they can
focus on their school works.

2.2 The company and the concept

The team was founded at Casa Del Niño Montessori and Science High School by the Grade 10
Students from 10-Tesla for their TLE Subject in which this business will continuously be operated until
the end of the school year. Mixed Snacks will be the main product of this business. The team is composed
of 3 individuals that will serve as the production and management team.

2.3 The Product and Service

Snacks are favored by many Filipinos because of its affordability and availability in the
Philippines. The team would buy different varieties of snacks and mix them together in a
container/packet. Snacks that would be included are from the respondents who chose through a survey
form provided by the entrepreneurs. The packets would be offered at a reasonable price that students can
buy frequently without wasting too much money.

2.4 Entry and Growth Strategy

The said business will have the opening and promotions while going to every campus building
and having promotions for customers such as "Buy 3 Take 1". This will be a good tactic because who
doesn't love free snacks? In addition, this will increase the number of people who would buy our products
and become the business' regular customers. If the demand for the product increases, the team will
incorporate more options such as Mixed Candies, Mixed Chocolates, and more. This is to satisfy more
future customers and to help make our business grow.
3. Market Research and Analysis

3.1 Situational analysis and the target market.

The entrepreneurs’ current products center on mixed chips placed in packets. Each pack contains
50 grams of mixed chips and will be sold at Php 30.00 per pack. These chips are bought from the
supermarket, its packaging will then be sanitized to avoid the possible spread of COVID-19. The team
will sanitize the materials/equipment, table(s), and hands, before wearing gloves to reach the utmost
cleanliness for the safety of the customers. The logo of the brand will be placed at the front part of the
packet to make sure it is noticeable to the customers. There is a wide market for the product as it is for
everyone to enjoy regardless of age or gender.

3.2 Marketing objectives and goals

This company's marketing goals are to increase sales on a daily basis. Also, to have their
product become one of the most popular snacks despite having numerous competitors. The entrepreneurs
want their product to be known throughout campus by strategically marketing it. It can be done with the
help of various marketing techniques to attract customers.

3.3 Customers
The customers will be the staff and the high school students of Casa Del Niño Montessori &
Science High School.

3.4 Market size and trends

The market size of CDNMSHS is very large assuming that the entrepreneurs can meet the demand of the
various levels of staff, faculty, and students. The products are priced at a level that students will find very
affordable. Every day, there will be approximately 400 students/staff who could be a potential market for
the business.

3.5 Competition and Competitive Edge

It is inevitable that business owners will compete with one another and with other stores. To grasp
the attention of the consumers, the entrepreneurs will employ a variety of marketing techniques, such as
promotions like “Buy 1, take 1” and high quality packaging. The process of repackaging requires the
entrepreneurs wearing aprons, hairnets, and gloves. While using tongs to transfer each chip from their
original packages to the entrepeneur’s package.

3.6 Estimated Market Shares and on sales

The profits of the business will be split between paying for each entrepreneur's salary and
materials. As the company's reputation grows, it is anticipated that the number of shares will rise. With an
estimated daily profit of at least $450, the company aims to produce at least 15 products per day.
3.7 On-going market evaluation
Following a product trial, the business owners will conduct a survey asking for feedback on the
current product from the customers. The survey will provide necessary informations, like the respondents’
identities won't be revealed, there will also be instructions on how to properly complete the survey, and
there will be questions that will give the entrepeneurs information on how to improve the product. As it is
crucial to fulfill customers' needs in terms of the product.

4. The Economics of the Business

4.1 Gross and Operating Margins

The company’s Gross and Operating Margins of the company will be shown and explained in this
particular section.

This is computed by subtracting the company’s total expenses from the earnings.
Revenue:

Sales of Mixed Foods [50packs x ₱30.00 each] ₱1,500.00

Total Expenses of Materials ₱340.00

Gross Margin ₱1,160.00

The Gross Margin Percentage is computed by dividing the Sales by the Expenses. Food Packies’ Gross
Margin Percentage is 57%.
Total Expenses of Materials ₱340.00

Sales of Mixed Foods ₱1,500.00

Gross Margin Percentage 0.23(23%)

The Gross Margin Percentage is 23% This will be beneficial for the company, as the entrepreneurs will
have funds to buy more materials or ingredients.

To solve for the Operating Earnings. Subtract the cost by the sum of Cost of Ingredients Sold and labor
Revenue ₱1,160.00

Cost of Ingredients Sold ₱340.00

Labor ₱100

Operating Earnings ₱720.00

To solve for the Operating Margin, the Operating earnings will be divided by the revenue.
Operating Earnings ₱720.00

Revenue ₱1,160.00

Operating Margin 0.62(62%)

Food Packies makes ₱62.00 in operating earnings.

4.2 Profit Potential and Durability

The data used for Profit Potential is shown in a weekly basis.

Inventory, in units (I) 50 packs

Sale price per unit (P) ₱30.00

Expenses per unit (E) ₱18.68

Profit Potential (PP) ₱13, 584.00

PP = I x (P-E)
PP = 1,200 x (Php30.00 – P18.680)
PP = 1,200 x (Php11.32)
PP = ₱13, 584.00

4.3 Fixed, Variable and Semi-Variable Cost

Fixed Cost
No. of Packets produced Average Cost per Packet

50packs ₱1160 / ₱50 = ₱23.2

Variable Cost
Cost of One Packet No. of Mixed Foods Produced Total Cost of Direct Materials

₱18.68 50 18.68x340=₱6351.2

₱18.68 100 18.68x680=₱12702.4

₱18.68 150 18.68x1360=₱252404.8

₱18.68 200 18.68x2720=₱13449.6

₱18.68 250 18.68x5440=₱101619.2

Semi-Variable Cost
Monthly Salaries of labors/Monthly Salaries of labors=Average Cost Per Pastillas
Monthly Salaries of Monthly Salaries of labors Average Cost Per Pastillas
labors/50packs

₱1000 50 ₱20

₱2000 100 ₱20

₱3000 150 ₱20

₱4000 200 ₱20

₱5000 250 ₱20

4.4 Months to Breakeven

Gross profit per unit = Sales price per unit – Cost of goods sold per unit
Sales Price Per Unit ₱30

Costs of Goods Sold Per Unit ₱18.68

Gross Profit Per Unit ₱11.32

Fixed monthly expenses = Cost of ingredients sold

Cost of Ingredients Sold ₱340.00

Fixed Weekly Expenses ₱11.32

No. of units sold to breakeven 30pcs

The company needs to reach a target of 30 pieces to be sold in order to reach the breakeven points. Most
probably, can be done in a week or less. The target number of packets to be sold in a day is 20, so
entrepreneurs can reach the target of 30pcs.

4.5 Months to Reach Positive Cash Flow

Food Packies
Internal Cash Flow Projections
April to May 2023

April May

Beginning Cash ₱340.00 ₱680.00

Sources of Cash:

Direct Sales ₱13, 584.00 ₱27, 168

Total sources of cash ₱1,000.00 ₱2,000.00

Uses of Cash

Payroll ₱100.00 ₱100.00

Cost of ingredients sold ₱340.00 ₱680.00

Total uses of cash ₱440.00 ₱780.00

Excess cash ₱560.00 ₱1,220.00

5. Marketing Plan

5.1 Overall marketing strategies and tactics

The company’s name is inspired by the packets and snacks that the company sells. It is also
inspired from the time of no canteens available and the feeling of wanting a different snack because
you’re tired of eating too the same snack and you want options. Food Packies provides mixed snacks in a
sealed packet with different options that the customers can pick on their own. These are more convenient
for people who want to try a variety of snacks at the same time and for a definite price. If the company
becomes successful, the entrepreneurs will incorporate more options such as Mixed Candies, Mixed
Chocolates, and more. The company will keep on ensuring the safety and quality of the products as the
business growns on. The company will keep on providing products with a high quality and safe ensurance
to satisfy more future customers as the business growns on.

5.2 Pricing
The team aims to provide affordable packet snacks for each and everyone. Eventhough affordable,
the team will still manage to earn enough profit. Therefore, the team agreed the product would be sold for
Php 30.00 per pack.

5.3 Sales Tactics

The team aims to sell their products by going around the campus and pursuing students to buy. In
this way, students don’t need to go outside their classroom to purchase the product. The team will also let
the students have the freedom to choose the snacks to be mixed, as the team considers the fact of wanting
different options. The team encourages customers to spread the company’s name in order to help and
provide more customers in the future.

5.4 Service and Warranty Policies

The team promises to provide service with utmost honesty and responsibility. They ensure that
the product is safe to eat, and clean, and does not in any way would cause health concerns. The team
would be fully responsible for any mistakes that may happen and would take it into account immediately.

5.5 Advertising and Promotion

Advertising and promotion would be the utmost priority of the entrepreneurs when starting out.
The team would start selling their product to their friends where they could help spread the product. They
would also sell their product to different staff members of the school to help promote the product. The
team would also provide special promos to encourage students and staff to buy.

5.6 Distribution
The team aims to distribute products to stores that also want to sell snacks provided they would
advertise the team’s company. They also ensure that the distribution of snacks won’t have any negative
effects on the customers and that any problems would be swiftly solved.