Lourdes College

General Capistrano St., Cagayan de Oro City

Graduate School Program

In Partial Fulfillment of the Subject:

Marketing and Strategic Management in the Hospitality (MSHM 107)

Ciervo Cafe
Submitted By:
Julie Grace G. Maagad
Ma. Alexandria Dumayaca
Christy Jane Diaz
Seby Huerte Arriesgado
Fatma Zahra Dimalna Abdulazis

Submitted To:
Dr. Cyril Chavez
Entrepreneurship Professor

May 28, 2023

 Ciervo Cafe

Part I: INTRODUCTION
A. EXECUTIVE SUMMARY

Company: Ciervo Cafe

Zone 2, Santoniño, Talakag, Bukidnon
Tel: 0955-900-3412

Contact: Cyril Ciervo Chavez, General Manager/Owner

Jeremie Bugarin, Marketing Manager

Business Type: Cafe or Coffee Shop

Company Summary: Ciervo Cafe was established on May 8, 2021 in the midst of a
pandemic. It was solely owned by Cyril Ciervo Chavez. The
cafe is located at Zone 2, Santoniño, Talakag, Bukidnon, 40 -
45 minutes away from Cagayan de Oro City. Before Ciervo
Cafe was established, there was already Ciervo Coffee Farm. It
is a farm that processes its own coffee bean from planting,
harvesting, to roasting and grinding. Their coffee is truly made
and processed locally by the local farmers of Talakag,
Bukidnon. Ciervo Coffee Farm has been operating for more
than 15 years already. Ciervo Cafe wishes to cater to students
near the place and travelers passing by the cafe. The cafe can
cater up to 20 persons. They also have a function room which
can cater up to 50 persons. They advertise their product through
social media like Facebook. They also give Flyers every
weekend, and they also have shops in shopee for those who
want to order their ground coffee online. Ciervo Coffee Farm is
also a distributor of premium coffee grounds, specifically
“Robusta coffee” to different coffee shops in Cagayan de Oro
City such as Beaks and Brew Cafe, Missy Bon Bon Cafe, and
Viajero outdoor centre. They also supply to Hotel de Susana
Valencia, and to the most popular hotel in town, Limketkai
Luxe Hotel.

Vision: Ciervo Cafe envisions to be the leading distributor of premium

coffee grounds around Cagayan de Oro City and its
neighboring city as a whole.

Mission: Ciervo Cafe aims to elevate coffee, people and the environment
by supporting sustainable practices and bringing joy to those
who love a good cup of coffee. As a coffee business, Ciervo
Cafe wants to improve the quality of life for every person in the
coffee supply chain, from producers to consumers.
 Values: Ciervo Cafe is committed to these values: preserving
hardworking employees, appreciation of coffee, dependability,
and delivering service to the consumers.

B. NATURE OF BUSINESS

Ciervo cafe provides premium quality coffee that is freshly made from the farm. They
also offer varieties of food such as iced blended drinks, milk teas, pizza, sandwich, flavored
fries, siomai, and other varieties of finger foods. They also have combo snacks and breakfast
meals such as cornsilog and hotsilog.

C. BUSINESS MODEL CANVAS

KEY PARTNERS KEY ACTIVITIES VALUE CUSTOMER CUSTOMER

PROPOSITION RELATIONSHIP SEGMENTS
- Freshly brewed
- none coffee - “Ciervo Cafe” - Customers want a - Retail Customers:
- Good and pleasing provides freshly quality of service, travelers, local
ambiance brewed coffees food, and drinks. residents, and
- Stress free from Ciervo - Pleasing tourists.
environment Coffee Farm ambiance. - Corporate
- Affordable and - Variety of Customers: Hotel,
delicious meal meals and Office, School, –
- Delivers a snacks.
product-related - Function Hall
service that is
friendly, pleasant,
and interesting.

KEY RESOURCES CHANNELS

- Human Resources - Physical Shop

- Financial Resources - Social Media
(Facebook Page &
Instagram Account)

COST STRUCTURE REVENUE STREAM(S)

● Raw Material Coffee and others.
● Shop preparation costs: cups, cups, plates,
spoons, coffee machines, cash registers,
and others.
● Employee costs.
● Other Costs: Electricity, Water, Gas, Fare.
● Cost of shop renovations and repairs.
● Main income of “Ciervo Cafe” is from the
sale of fresh coffee drinks which is a major
strength.
● Additional income from selling snacks and
meals.
● Other income from sales of coffee powder,
taro chips, and tablea.
● Future business development of function hall,
and rooms for accommodation.
 Ciervo Cafe

Part II: MARKETING PLAN

A. PESTEL ANALYSIS

B. SWOT ANALYSIS

INTERNAL FACTORS

STRENGTHS (+) WEAKNESSES (–)

● Product: Coffee ● Sales and Marketing Strategy

● Innovative ● Location
● Manpower
● Lack of Suppliers
● Quality of some food

EXTERNAL FACTORS

OPPORTUNITIES (+) THREATS (–)

● Economic Growth ● Competitors

● Outlets or mobile cart ● Food Quality
● Supplier of Coffee
● Conduction of Trainings
● To have more suppliers (other
ingredients)
C. COMPETITOR ANALYSIS

Don Macchaitos was built in the year 2022, and

is owned by Nickie San Juan. Mainly, Don
Macchiatos can be found anywhere around the
Philippines since there are many branches being
built already. Especially around Cagayan de Oro
City and Bukidnon.

It offers two varieties of coffee which are,

Macchiato and Matcha. People love its
affordable price that is only 39 pesos.

Chingkeetea is home to CDO’s authentic

Taiwanese tea drinks. They use only
high-quality tea leaves handpicked from
Taiwan, where milk tea is said to have
originated. They brew them daily, and then
fuse them with our own little sparkle to
provide our customers with the best tea
experience.

They have almost 10 years of serving their

customers with their newly updated menu.
 CUSTOMER SEGMENT 1
(Cafe/Milktea Owners)

Value Proposition Competition 1 Competition 2

What unique value do How does our value proposition How does our value proposition
we offer to each target compare to the closest viable compare to the closest viable
segment and how do alternatives that our customers have? alternatives that our customers have?
we communicate it?

Price (High/Low) Heavy Heavy

Product Quality Heavy Heavy

(High/Low)

Promotion Heavy Heavy

(Heavy/Light)

Place-Distribution Wide Wide

(Wide/Exclusive)

CUSTOMER SEGMENT 2
(Cafe/Milk Tea Operators)

Value Proposition Competition 1 Competition 2

What unique value do How does our value proposition How does our value proposition
we offer to each target compare to the closest viable alternatives compare to the closest viable
segment and how do that our customers have? alternatives that our customers have?
we communicate it?

Production Heavy Heavy

(High/Low)

Customer Service Heavy Heavy

(High/Low)

Promotion Heavy Heavy

(Heavy/Light)
 CUSTOMER SEGMENT 3
(Cafe/Milk Tea Suppliers)

Value Proposition Competition 1 Competition 2

What unique value do How does our value proposition How does our value proposition
we offer to each target compare to the closest viable compare to the closest viable
segment and how do alternatives that our customers have? alternatives that our customers have?
we communicate it?

Cost Reduction High High

(High/Low)

Efficiency (High/Low) High High

Product improvement Heavy Heavy

(Heavy/Light)
D. 2024 BUSINESS PLAN WORKSHEET
 Ciervo Cafe

Part III: OPERATIONS PLAN

 A. MACHINERY/EQUIPMENT

Machineries/Equipment Quantit Price/unit Total Supplier

y

Coffee Maker (Automatic 1 unit 859 859 All Home

Drip)

Espresso Machine 1 unit 13,200 13,200 All Home

Industrial Blender 2 units 2269 4,538 Ace Hardware

Industrial coffee grinder 1 unit 13,800 13,800 All Home

Oven toaster 1 unit 1,789 1,789 Ace Hardware

Microwave oven 1 unit 4,507 4,507 All Home

Chiller 1 unit 18,554 18,554 All Home

Freezer 1 unit 15,764 15,764 All Home

Ice machine 1 unit 11,500 8,995 S&R

Dishwasher 1 unit 3,239.75 3,239.75 All Home

Sanitizer and soap 2 units 859.75 1,719.50 All Home

dispenser 600ml

Wifi 1 unit 999/mo. 999/mo. DCtecH

Fire Extinguisher 1 unit 945 945 3J Marketing

POS 1 unit 1,200/mo. 1,200/mo. MoneyCache

- COFFEE MAKER

- ESPRESSO MACHINE

- INDUSTRIAL BLENDER

- INDUSTRIAL COFFEE GRINDER

- OVEN TOASTER

- MICROWAVE OVEN

- CHILLER

- - FREEZER
- ICE MAKER

- DISHWASHER

- SANITIZER AND SOAP DISPENSER

- WIFI CONNECTION
 - FIRE EXTINGUISHER

-POS

B. LOCATION

The business is located at Zone 2, Santoniño, Talakag, Bukidnon.

C. PHYSICAL LAY-OUT
First floor

Second Floor
 Ciervo Cafe

Part IV: ORGANIZATIONAL PLAN

A. LEGAL FORM OF BUSINESS

Ciervo Café (name of the company) was established in 2020 as a sole

proprietorship form of business with Cyril Ciervo Chavez as the owner and at the
same time, the general manager of the business. The Company is also established
together with the other three (3) functions of management, namely: Sales &
Marketing, On-Call Waiter and On-Call Cook/purchaser. Jeremie Bugarin as the Sales
& Marketing; Renante Bontao as the On-Call Waiter; Miguel Anora as the On-Call
Cook/Purchaser. With the Coffee Farm, Coffee Processing Services, Learning Site for
agriculture and its newest Ciervo Café function hall. The General Manager arranges
the factors of production, assembles and organizes the resources. Eventually this Café
will be successful in the future by taking calculated risks to help the business grow,
study and learn from the competitors, providing good quality service to the customers
and gaining their loyalty. Make sure that not only the business is ready for serving but
you are as well. Stay focused on achieving short-term goals.

B. ORGANIZATIONAL STRUCTURE

General Manager

1. A General Manager, he is responsible for the growth, stability, direction and daily operation
of the business.
2. He will set business objectives: Maintaining consistent profitability, keeping the company
running smoothly, employees must be dedicated to the business, customers are always a top
priority, and the company will measure the growth over the long-term and short-term.
3. He will develop a network of contacts to attract new customers and research for new market
opportunities.
4. He will oversee the growth projects, making sales projections and forecasting revenue.
5. He will assign a representative for attending events such as exhibitions for business exposure
and new learnings.
6. He will conduct annual hands-on training and teambuilding for the employees. At the same
time renew all business rules and procedures.
 Sales & Marketing Manager

1. He will be responsible for identifying potential customers.

2. He will collaborate with the general manager to develop strategies for reaching sales targets.
3. He will be managing leads through sales by tracking progress towards meeting sales goals.
4. He will assess the potential plans, design projects and all marketing programs such as social
media advertising and promotions.

On-Call Waiter

1. He is responsible for welcoming and seating the guests.

2. He will be taking orders, communicating effectively to the kitchen and memorizing the menu,
also offering best sellers like appetizers, desserts, or drinks.
3. He must make quick decisions and have great interpersonal skills.
4. Attention to details and excellent multitasking skills.

On-Call Cook/Purchasing Officer

1. A Cook plans, prepares, and cooks food items to ensure the highest quality service to the
customers.
2. He must keep the kitchen organized and running efficiently.
3. He must ensure proper handling, sanitation and following food storage procedures.
4. He will cook dishes that will delight the customers with their taste and timely delivery.
Experience in using various ingredients and cooking techniques is also important.
5. A purchaser ensures good quality products, and also it includes price evaluation, market
assessment, product ordering, record keeping and tracking of orders (inventory from
time-to-time)
 Ciervo Cafe

Part V: FINANCIAL PLAN

 A. CAPITAL EXPENDITURE AND PRE-OPERATING COSTS

Start-up Budget

Ciervo Cafe
Company Name:
Estimated Opening Date: May 8,2021

Investments and Loans

Investments
Business Owner P 1,000,000.00
Total Investments P 1,000,000.00

Loans
Cash Borrowing (non-interest bearing) P 500,000.00
Total Loans

Start-up Expenses

Building
Architect Fees P 80,000.00
Construction P 1,000,000.00
Remodeling
Other P 50,000.00
Total Building P 1,130,000.00

Equipment
Furniture P 100,000.00
Equipment and Materials 250,000.00
Fixtures 100,000.00
Signage and Awnings 30,000.00
Point of Sale System 10,000.00
Computer/Network 14,400.00
Other -
Total Equipment P 504,400.00

Legal and Administrative Expenses

Rental
Licenses and Permits 10,000.00
Utility deposits 5,000.00
Legal and accounting fees 10,000.00
Prepaid insurance 25,000.00
Other
Total Legal and Administrative Expenses P 50,000.00

Advertising and Promotional Expenses

Advertising-General P 10,000.00
Advertising-Grand Opening 20,000.00
Design 15,000.00
Printing 8,000.00
Other -
Total Advertising and Promotional Expenses P 43,000.00

Other Expenses
Other expense P 20,000.00
Total Other Expenses P 20,000.00

Reserve for Contingencies P -

Summary

Investments and Loans:

Owners' and other investments P 1,000,000.00
Loans 500,000.00
Total Source of Funds P 1,500,000.00

Start-up Expenses:
Buildings P 1,130,000.00
Equipment and Materials 504,400.00
Legal and Administrative 50,000.00
Advertising and Promotional 43,000.00
Other Expenses 20,000.00
Contingency fund -
Total Start-up Expenses P 1,747,400.00
B. STATEMENT OF FINANCIAL POSITION
C. PROJECTED STATEMENT OF FINANCIAL PERFORMANCE
 D. PRICELIST

Breakfast Meals
Food List Price
Corned Beef
Pork Ham P140.00
Pork Tocino P140.00
Smoke Longanisa P140.00
Honey Cured Bacon P140.00
Fried Chicken P140.00
Chicken Lumpia P140.00
FrankFurther Sausage P140.00
Short Orders
Tinolang Tuna P120.00
Chicken Lumpia P120.00
Calamares P150.00
Fried Tuna Panga P250.00
Fried Chicken P250.00
Add Ons
Chinese Kangkong w/ Salted Fermented Fish P30.00
Kamote Tops w/ Salted Fermented Fish P30.00
Iced Blended Drinks
Iced Cappucino P90.00
Iced Latte P90.00
Iced Mocha Latte P90.00
Flavored Latte P90.00
Iced Americano P80.00
Iced Choco P80.00
Ice Tea Pitcher P70.00
Hot Coffee Drinks
Cappucino P70.00/8oz
P90.00/12oz
Latte P70.00/8oz
P90.00/12oz
Mocha Latte P70.00/8oz
P90.00/12oz
Americano P50.00/8oz
P70.00/12oz
E. DEPRECIATION SCHEDULE

Machineries/Equipment Quantity Price/unit Life in years

Coffee Maker (Automatic Drip) 1 unit 859 3-5 years

Espresso Machine 1 unit 13,200 3-5 years
Industrial Blender 2 units 2269 10-15 years
Industrial coffee grinder 1 unit 13,800 5-7 years
Oven toaster 1 unit 1,789 5 years
Microwave oven 1 unit 4,507 7 years
Chiller 1 unit 18,554 5-10 years
Freezer 1 unit 15,764 11 years
Ice machine 1 unit 11,500 4-5 years
Dishwasher 1 unit 3,239.75 9 years
Sanitizer and soap dispenser 600ml 2 units 859.75 1-2 years
Fire Extinguisher 1 unit 945 10 years
POS 1 unit 1,200/mo. 5-7 years