CaféLatate Brewers

BUSINESS PROPOSAL

SUBMITTED TO:

MS. LINDA DELA PEÑA

SUBMITTED BY:

ALBA, ANDREW B.

MARAÑAN, DAISY A.

TAMULON, RICKY M.

NAVARRO, HEZEKIAH

TAN, JESA MAE

MAY 2023
SITUATIONAL ANALYSIS

According to the World Health Organization (2020), the impact of the COVID-

19 pandemic has created challenges for public health, food systems, and the world

of work. Businesses are forced to close, lay off staff, turn to digital marketing, and

more. After a year, things are starting to get back to normal as the government lifted

some restrictions. This response means that shops are operating again as they did

before by complying with safety protocols.

CaféLatate Brewers is a Boho Chic-themed Cafe that sells high-quality

desserts with affordable products as comfort food that easily satisfies customers as

we are still experiencing a pandemic. With our marketing plan, this allows us,

business owners, to analyze the plans to build our business and to develop an

outline of the business's marketing strategy.

I. BACKGROUND VENTURE

CaféLatate Brewers is a Boho Chic-themed Cafe located in Matina Town

Square (MTS) that sells a variety of pastries. We chose to open our store in MTS

because compared to the prices of our products to our competitors it is less

expensive and the common customers in MTS are students, as it is near three

schools. We decided to open a themed cafe, especially Boho Chic because it has a

relaxing yet creative space for all ages. With our chosen theme, we want to cheer up

and comfort our customers with our products as the pandemic is still ongoing. We

expect that this business proposal and marketing plan will strengthen its position in

the local market as we sell our products at reasonable prices and high quality.
 II. STRENGTH AND WEAKNESSES OF VENTURE

A. Strength

● The Boho Chic-themed is enjoyed by all ages.

● Customers can order online or in-store.

● Themed cafes attract customers.

● CaféLatate Brewers products satisfy customers' quality and

taste.

● Prices are affordable.

B. Weaknesses

● CaféLatate Brewers is a new entrant.

● Banana bread, cakes and coffees are common in the market.

● CaféLatate Brewers has many big competitors.

● CaféLatate Brewers has a limited budget.

III. MARKET OPPORTUNITIES AND THREATS

A. OPPORTUNITIES

● Students and young professionals, with this we can attract

different kinds of consumers and gradually increase our

popularity.

● Every day, a large number of individuals consume custom

cakes, and bread.

● As the COVID-19 pandemic continues, CaféLatate Brewers

offers Home Delivery Services. This type of service could be the

key to ensuring that our business generates a steady stream of

money and does not fall behind its competitors.

 ● Advertising and promoting our products to different media can

attract new customers and help us to sell more cakes and bread

and services to existing customers. In short, it helps our

business grow.

● Opening a new branch or office and expanding our operations

and entering new areas can be the start of new opportunities.

B. THREATS

● Strong competitors around the area.

● Price wars between competitors, price cuts and so on could

damage profits, and Customer dissatisfaction can drag down

any facet of our business.

● An economic downturn can affect our business because

consumers tend to spend less and may delay purchases or

payments, which could have a ripple effect on our business's

cash flow and financial commitments. In addition, the prices of

safety raw materials and ingredients for the cakes, bread and

coffees (increase in cost of raw materials).

IV. COMPETITOR ANALYSIS

Strategies Starbucks Red Ribbon Café Latte

Brewers

Product or ● There are ● One of the ● Boho Chic

Services 298 fastest themed that
Starbucks growing serves
outlets in the bakeshops in delicious
Philippines the pastries.
Philippines.
● Starbucks
does not ● Red Ribbon
only serve serves
good coffees Round
it also serves Cakes,
Loaves & Sweet
Cakes, Pastries,
Muffins & Cold
Scones, Desserts &
Cookies, Beverages,
Brownies & etc.
Bars, etc.

Pricing ● Value Based ● Cost Based ● Cost Based

Pricing Pricing Pricing

Distribution ● Pre-Order ● Online ● Pre-Order

and Actual Ordering and and Actual
Purchasing Actual Purchasing.
Purchasing
● Free
● Free Delivery delivery
with a within the
minimum location
order worth
 ₱500 of any only.
red ribbon
products.

Promotion ● Uses ● 1 poster is ● Social

websites, posted Media
social outside the Platforms to
medias store promote the
channels, business.
and in-store ● Discount
displays coupons ● Attending
given in food
● Starbucks is every people bazaars and
a big (first 10 events.
company people)
they have
the budget ● Updates
and social media
expertise to pages for its
do whatever new bundle
they want product
when it
comes to
promotions

Strength ● One of the ● Several ● Products

largest locations in satisfy
companies in the City customers'
the world quality and
that serves ● They have taste.
coffee, good
breads, business ● Affordable.
cakes, etc. system
● Can easily
 ● It can afford ● Red ribbon attract
to price their has large customers
products in infrastructure because of
the premium that allows the well
as well as them to known
budget manufacture theme of
friendly new the cafe.
range to products.
attract more
customers

Weakness ● High prices ● Low ● Limited and

for other customer common
products relationship products to
management sell.
● Most
products ● Only ● Has many
have general advertises big
standards cakes competitors.

● Variable
supply cost

V. MARKETING OBJECTIVES AND GOALS

A. Mission Statement

To create and propose something new to the customer and to

provide high quality food. Moreover, the company creates good

customer service and always prioritizes the customer.

B. Vision Statement

CaféLatate Brewers aims to become a well-known and

dominant distributor of pastry food in the country and to provide high-

 quality, delicious food at reasonable prices, as well as a warm, clean

store environment.

C. Marketing Objectives

● To serve a good product to the community.

● To create a product with uniqueness.

● To propose something new to the mass.

VI. MARKETING STRATEGY AND ACTION PROGRAMS (POGOY)

● Product and Service Strategy

Pastries and Lattes are the products of CaféLatate Brewers. The

product’s quality is essential for the business' success. This cafe emphasizes

that all the ingredients in these products are properly baked, clean, and

hygienic. CaféLatate Brewers will offer a wide variety of products, focusing

not only on seasonal celebrations but also on events such as birthdays and

anniversaries. Additionally, the staff are trained in a customer-centric

approach or customer-centric approach and have sufficient knowledge of the

entire selection of goods and services.

● Pricing Strategy

Prices at CaféLatate Brewers will strive to be competitive with the

industry Costs and expenses will be calculated to provide the business with a

minimum price option, preventing any losses. The company will also study the

prices of similar products from other similar businesses to understand the

price requirements and to remain being competitive. As long as the industry

prices are high enough to cover the calculated costs, CaféLatate Brewers
 pricing is much lower than its competitors, which are illustrated below, as well

as the initial markup of the product.

Competitors: Products: (Chocolate Pricing:

Cake)

STARBUCKS Chocolate Caramel Fudge P1559.00

Cake

RED RIBBON Chocolate Dedication Cake P637.00

CAFÉLATATE BREWERS Chocolate Cake P359.00

Selling Price: 359.00

Less: Mark-up (profit) – 119.83
Standard Cost (Direct + Indirect Cost) – Php 239.17

Competitors: Products: (Banana Pricing:

Bread)

STARBUCKS Banana Walnut Bread P275.00

RED RIBBON Banana Crunch P199.00

CAFÉLATATE BREWERS Banana Bread P180.00

Selling Price: 180.00

Less: Mark-up (profit) – 64.80
Standard Cost (Direct + Indirect Cost) – Php 115.2
● Distribution Strategy

The CaféLatate Brewers products will be distributed through initiating

preorders and actual purchasing. Distribution also includes free delivery within

the location only.

● Promotion Strategy

CaféLatate Brewers will promote through local flyers and

advertisements. Not only in newspapers but also on different social media

platforms. CaféLatate Brewers will offer free samples to give consumers a

risk-free trial of the tasty treats. CaféLatate Brewers will also attend food

bazaars and events that will use public relations for promoting the business.

Also, being a part of a small community will contribute to the successful

promotion of the business to increase the chance of the business being

recommended to other potential customers.

CaféLatate Brewers Logo

 CaféLatate Brewers Sample Poster

● Product

A product is anything offered to the market that might satisfy a need

and is categorized by use, brand, and other classifications. The products of

CaféLatate Brewers: Pastries and Coffees.

CaféLatate Brewers pastries are special, rich in

ingredients, moist, sweet.

Chocolate Cake. Our Chocolate cake filled with premium

chocolate ingredients. Customers can buy the chocolate cake

both dine in and take out.

 CaféLatate Brewers will use several methods to ensure product

quality. Our products are baked from scratch with fresh ingredients, and any

expired products will be disposed of. The company will also focus on

cleanliness and sanitation. Bakers will be required to wash their hands

frequently and clean the kitchen regularly.

● Price

Price attempts to establish the return generated by the product’s use

from the customer’s point of view. The CaféLatate Brewers will first calculate

the cost of simply making each cake and breads based on the supplies used.

The owners will look into the expenses of the employee wages as well as

show how much income is needed to return investments. Based on all these

calculations, the business will develop an idea of a minimum price option.

Then, the company will research the prices of comparable products of other

similar businesses in the area. As long as the prices of competitors are high

enough to cover the costs calculated for this bakery, CaféLatate Brewers will

choose prices that are competitive with the industry.

● Place

CaféLatate Brewers is located at Matina Town Square, Gen. Douglas

MacArthur Highway, Davao. We chose to open our store in MTS because it is

surrounded by schools and workplaces.

CaféLatate Brewers Vicinity Map

 CaféLatate Brewers Floor Plan

The Cafe will begin as a small operation with a single bakery. However,

over time, the company will work to grow. As the business grows, CaféLatate

Brewers will gradually open more pastry shops in larger areas and possibly in

a city location and even malls.

 ● Promotion

- The grand opening will be promoted through posters around the local

area and in the different social media platforms.

- CaféLatate Brewers will attend food bazaars and events for exposure

and at the same time promoting the business.

- The company will endorse the products with the social media

influencers to promote our products.

VII. BUDGET

A budget is often drawn up for a financial year and contains information about

anticipated sales and associated business costs within that period. CaféLatate

Brewers budget pricing, costing, estimated income, cash flow statement, and

balance sheet statement for the year ended December 31, 2022, were illustrated

below based on the business's future plans as well as its objectives.

Objective:

● To build a friendly and relaxing atmosphere and serve various quality

coffee and food to the customers at a reasonable price.

● To generate awareness by being visible to the public to know the brand

or marketing.

● Increase repeat visits to sustain the profit.

 CaféLatate Brewers

Banana Bread

PRICING AND COSTING:

Ingredients: Price ( Pesos )

All Purpose Flour 13.00

Baking Powder 5.00

Baking Soda 7.00

Salt 2.00

Eggs 6.00

Brown Sugar 10.00

Vegetable Oil 12.20

Banana 32.00

INDIRECT MATERIALS

Price ( Pesos )

Bread Loaf Plastic Bag (Packaging) 4.00

Decorative tools and Materials` 7.00

Labor 5.00

Utilities 6.00

Baking Equipment 6.00

TOTAL: 115.2
Selling Price: 180.00 Less: Mark-up (profit) – 64.80
Standard Cost (Direct + Indirect Cost) – Php 115.2
 CaféLatate Brewers

Chocolate Cake

PRICING AND COSTING:

Ingredients: Price ( Pesos )

All Purpose Flour 65.87

Baking Powder 5.00

Baking Soda 10.40

Granulated Sugar 15.00

Eggs 6.00

Cocoa Powder 20.00

Vegetable Oil 12.20

Vanilla Extract 37.00

Powdered Sugar 34.20

INDIRECT MATERIALS

Price ( Pesos )

Acrylic Cake box (Packaging) 6.00

Decorative tools and Materials` 6.00

Labor 7.00

Utilities 8.00

Baking Equipment 6.50

TOTAL: 239.17
Selling Price: 359.00 Less: Mark-up (profit) – 119.83
Standard Cost (Direct + Indirect Cost) – Php 239.17
 MARKETING STRATEGIES

MARKET SHARE: BANANA BREAD

Assumed Target Market Population 255,510

Assumed Sales Percentage 70%

Assumed One Year Customers 6,112

Assumed Monthly Customers 516

Assumed Daily Customer 21

Sales Per Year @ ₱180.00 1,100,160

Sales Per Month @ ₱180.00 92,880

Sales Per Day @ ₱180.00 3,780

MARKET SHARE: CHOCOLATE CAKE

Assumed Target Market Population 255,510

Assumed Sales Percentage 70%

Assumed One Year Customers 6,112

Assumed Monthly Customers 516

Assumed Daily Customer 21

Sales Per Year @ ₱359 2,194,208

Sales Per Month @ ₱359 185,244

Sales Per Day @ ₱359 7,539

VIII. CONTROL
The following areas will be monitored very closely by CaféLatate Brewers

management:

● CaféLatate Brewers will monitor the expenses monthly and yearly.

● CaféLatate Brewers is aiming for improvement in product and business.

● CaféLatate Brewers conducts inventory management control for ordering,

storing materials, and inventory.

Reference:

Chriscaden, K. (2020). Impact of COVID-19 on people’s livelihoods, their health and

food systems. Retrieved from: https://www.who.int/news/item/13-10-2020-impact-of-

covid-19-on-people's-livelihoods-their-health-and-our-food-systems