DON HONORIO VENTURA STATE

UNIVERSITY
Bacolor, Pampanga

Master of Business Administration

1st Trimester, A.Y. 2021-2022

Marketing Plan for Chelly’s Sweets and Pastries

MALVORON

A plan for the Partial fulfillment of the requirements in Marketing Management

Submitted by:

Rochelle T. De Leon
Submitted to:

Dr. Jesus Panlilio

March 20,2021

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Table of Contents

1.0 Executive Summary……………………………………………………………………………………………..………..…………4

2.0 Situation Analysis……………………………………………………………………………………………..……….…………….5

2.1. Market Analysis…………………………………………………………………………………..………………6

2.1.1. Market Segmentation……………………………...……………….………………..…6

2.2 SWOT Analysis………………………………………………………………………....………..…..……………7

2.3 Competition……………………………………………………….….……..………..…………..………………9

2.3.1 Direct Competitors…………………….……………………………………………………9

2.3.2 Indirect Competitor………………………………………….……………………….……10

3.0 Objectives……………………………………………………………………………………….…….……………….….……………10

3.1 Marketing Objectives …………………………………….….…………………………………..…………10

3.2 Financial Objectives…………………………………….….…………………………………………………11

4.0 Marketing Strategy…………………………………….….………………………………………………………………………11

4.1 Target Market…………………………………….….……….……………………………………………….11

4.2 Positioning…………………………………….….………….…………………..……….……………………12

4.2.1 Attributes Positioning……………………………….….………………..……………12

4.2.2 Price and Quality Positioning.……………………………….….………….………12

4.2.3 Benefits Positioning……………………………….….…………………..……………12

4.2.4 Product User Positioning……………………………….….………..………………12

4.2.5 Competitor Positionin.……………………………….….……………………………13

4.3 Marketing Programs………………………………….….…………………………………..….…………………..13

4.3.1 Product/Brand……………..……….….…………………………….………………………13

4.3.1.1 Source of Raw Materials…..…………….….………………………13

4.3.1.2 Quality Control and Food Safety…………………………………14

4.3.1.2.1 Shelf Life and Spoilage……………………………14

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 4.3.1.3 Tools and Equipment……………………………………..………...14

4.3.1.4 Physical Features and Production Process…………………………16

4.3.1.5 Packaging and Labeling…………………………………………………….18

4.3.2 Price/Value………………………………………………………………………………….……………18

4.3.2.1 Pricing Objectives……………………………………………….……………18

4.3.2.2 Pricing Methods………………………………………..……………….……19

4.3.2.3 Pricing Strategy…………………………………………………..……………19

4.3.3 Distribution and Value Chain………………………………………………………………………20

4.3.3.1 Place…………………………………………………………………………………20

4.3.4 Marketing Communications…………………………………………………………….…….…21

4.3.4.1 Advertising…………………………………………………………………………21

4.3.4.2 Sales Promotion……………………………………………………….…………21

4.3.4.3 Public Relations……………………………………………………….…………21

4.3.4.4 Word-of-Mouth………………………………………….………………………21

5.0 Financials………………………………………………………………………………………………………………………………22

6.0 Controls………………………………………………………………………………………………………..………………………26

6.1 Implementation………………………………………………………………………………….………………27

6.2 Contingency Plan…………………………………………………………………………..………………28

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1.0 Executive Summary

The best things in life are sweet therefore sweets and pastries are some of

the comfort food among Filipinos. And dessert is one of a good food that can make a

good mood, so it would not be shocking if a lot of bakeshops have established

nowadays. However, when pandemic hits the world, people become more conscious

on their health and on what they eat. Many people are starting to become health

conscious and opt out foods that they consider harmful to their health such as

sweets which can commonly cause to diabetes.

Chelly’s Sweets and Pastries a home-based and online business located at

Purok 7, San Jose Malino Mexico , Pampanga thinks on effective way to provide

cravings with health satisfaction for consumers. The new product is tailored to suit

the needs of those who are health conscious but love to have piece of

dessert.Malvoron is a polvoron filled with a malunggay leaves , a vegetable known

for its various health benefits and nutrients that are packed in it.

Chelly’s Sweets and Pastries goal is to introduce a delicious but affordable

polvoron, with a healthy and nutritious twist. Its target Market will be low to middle

class earners of the Town of Mexico .In order to make the product profitable and well

known, except from being healthy and affordable the management will use several

marketing strategies that will capture the heart of the market.

Chelly’s Sweets and Pastries is expected to bring a gross sales of P

519,750.00on its first year with P 118,863.36 as its profit. The net incomes as well as

the units produced are expected to grow over the years. In order to achieve this

sales and financial objectives a well market research and implementation of its

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marketing strategies will need to be executed .However if things don’t go according

to plan, contingency plans have made to ensure that Malvoron will not just survive

but to thrive as well.

Mission

Our mission is to provide healthy and quality products to give delight to its

customers.

Vision

Our vision for the future is to become a leading sweets and pastries shop in

Pampanga that offer and serve innovative desserts for everyone.

Core Values

Passionate, Innovative, Quality, Service, and Health.

2.0 Situation Analysis

2.1 Product Background

Filipinos were known for the love for food especially sweets or desserts.

Therefore, it will not be surprise if it has a variety of delicacies and sweets in the

country.

Polvoron is an ideal desert or a perfect snack – with its milky and sugary taste.

However, in this new normal the pandemic time people tend to be more conscious

on their health. People learn to spend and eat smarter therefore formulating a

splendid recipe that can satisfy both cravings and nutritional needs will be more

attractive to customers. It is very timely to introduce Malvoron (Malunggay Polvoron )

that has less sugar and fortifying it with vitamins and minerals. This can let

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customers enjoy their cravings with reduce guilt or worry of spiking high blood sugar

level.

2.2 Market Analysis

Chelly’s Sweets and Pastries is a home-base and online business located at

San Jose Malino , Mexico , Pampanga which aims to produce

affordable ,fresh ,nutritious and delicious Malunggay Polvoron that is less sugar and

fortified with vitamins and minerals. It will make use of the social media platforms

such as Facebook and Instagram in advertising its product and to attract potential

customers. Its target market will be residents of the Municipality of Mexico

Pampanga that belongs to lower to middle class family who wish to settle for a

healthier of snacks.

2.2.1 Market segmentation

2.2.1.1 Demographic Segmentation

Chelly’s Sweets and Pastries intended to cater lower to middle class residents

of Municipality of Mexico, Pampanga. It is available to everyone regardless of sex

and marital status. Furthermore, it targets 7-years-old and above and is highly

recommended to those who have existing health conditions such as obesity,

diabetes, etc., but still want to taste something sweets.

2.2.1.2 Geographic Segmentation

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Figure 1 – Map of Municipality of Pampanga Figure 2 – Map of San Jose Malino, Mexico,Pamp.

(Chelly’s Sweets and Pastries )

Chelly’s sweets and pastries is located at Barangay San Jose Malino, Mexico

Pampanga and its main target customer will be coming from the residents of the

Municipality of Mexico covering of 43 Barangays. However, since the place is

strategically located it can also attract nearby municipalities like Arayat, Magalang

and San Fernando especially motorist can also be potential market.

2.2.1.3 Psychographics Segmentation

Malvoron (Malunggay Polvoron) offered by Chelly’s sweets and pastries. It

is highly recommended for people who love sweets yet wants to try a healthier

option. With this new normal, Millennials and Generation Z are now making ethical

and compassionate choices on what they want to eat which is why malvoron can be

one of the food trends today and in the coming years.

2.2 SWOT Analysis

SWOT Analysis will help the management in making business decision and

come up with a right marketing approach. By determining the strengths and

opportunities of Chelly’s Sweets and Pastries will lead the business strategize and

take its advantage and opportunities in the market. On the other hand, identifying its

weaknesses and threats will help the areas of the business that needs for further

improvement.

2.2.1 Strengths:

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 a. Affordable Price – availability of supplier of raw materials is in the same

city the business is located offering raw materials in bulk yet lower price.

Since the business overhead cost is low the product can be sold at

affordable price.

b. Healthier options – adding malunggay leaves to the product added for

the nutritional value of the polvoron . Then the management also prefer to

use more nutritious milk and less sugar content to satisfy customer with a

healthy snack.

c. Free delivery services – The management will offer a free delivery

services for customers within the city with a minimum purchase of

P1000.00

d. Product Development – since the product is new feedbacks from

customers can be used for innovating the product and providing another

variance as well.

e. Expansion – opportunities to nearby municipalities, towns and provinces

are feasible.

2.2.2 Weakness:

a. Limited Production Capacity – since the product will be produced at

home, the capacity of production will be limited due to limited manpower

and equipment.

b. Limited Market – since it is a small business the management cannot

provide for its supply chain and has a limited advertising and promotion

strategies.

c. Limited Variance offered – only 1 flavor will be initially offered to the

market which will not give customers options.

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 d. Unattractive Packaging – since It is a start-up business the

management unable to provide for a customize alternative packaging for

aesthetic and environmental purposes.

2.2.3 Opportunities:

a. Potential linkups to nearby convenience or grocery stores.

2.2.4 Threats:

a. Strong Competitors –some competitors have a strong brand name

while other competitors having much lower price than Malvoron .

b. Inflation – price increases of raw materials is possible especially

during this pandemic where in the economy shut down.

c. Future competitors – there may be new competitors that may arise

and will offer the same product.

2.3 Competition

Competition is widely acceptable in all businesses; manager must be

optimistic especially with changes because it must be basis for continuity and

necessary for growth. As of date, there are no other delicacies stores that offer

malunggay polvoron in the town of Mexico which makes Chelly’s Sweets and

Pastries offer delicious, nutritious and affordable polvoron. However, there are bigger

market competitors such as Goldilocks, Red Ribbon, and ChocoVron offering same

product line with Chelly’s Sweets and Pastries. Also, in this digital world there are

many online shops that offer malunggay polvoron .

2.3.1 Direct Competitors

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 ChocoVron or ChocoVron Global Corporation is one of the leading and

award winning company not just in the country but also globally . It is first known by

selling the first Chocolate coated polvoron in the country. The business continues to

innovate from ChocoVron to offering same product containing vegetable bits and

called it VeggieVron then from the successful line they innovate Nutrivon which from

chocolate coated polvoron they are now serving non-coated polvoron with same

vitamins rich in veggies and recently innovated Manilla Polvoron that made even

healthier with the use of stevia. ChocoVron was carried by various major department

stores, convenience stores, bakeshops, malls and in online shops flatform like

Lazada.

Goldilocks -is one of the leading bakeshops which produces and distributes

sweets and pastries nationwide. A branch is located in the Town of Mexico

Pampanga.

Red Ribbon - is one of the biggest and fastest growing bakeshops in

the Philippines. There were also offering cakes and pastries nationwide.

JBC Food Corp – local brand that have a wide variety of snacks products

they also distribute internationally. They Milkee Polvoron become popular because of

its creamy taste yet affordable price.

2.3.2 Indirect Competitors

Geecee Bakeshop – it is one of the famous bakeshops in Pampanga offering

sweets and pastries. In Mexico it is located at the Town and offers broad variance of

breads, cakes and pastries.

3. Objectives:

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 3.1 Marketing Objectives

The following will be the marketing objectives of Chelly’s Sweets and Pastries for

its Malvoron:

1. Reach at least 3000 potential customers for the first 2 months of the

business operation and increase it by 500 people monthly for the

succeeding months.

2. Sell 330 packs on the first month and increase it by 15 % for the succeeding

months on its 1st year.

3. Sell the product at P75.00 with at least 50 % mark up from the production

cost.

4. Boost social media platform advertisement by providing shoppe or Lazada

account to reach nearby municipalities such as San Fernando, Magalang,

Sta Ana, Arayat and Angeles Pampanga.

3.2 Financial Objectives:

● To have a total sale of P 24,750 with at least 5,000 profit for the first month.

● To have 10 % increase in sales on the 2nd and 3rd year respectively.

4. Marketing Strategy

Nowadays, living healthy is the “in thing”. Therefore, Chelly’s Sweets and

Pastries marketing strategy will be focus more on customer awareness of the

product that promotes healthier snack through the use of social media platforms. Its

advertisement will be focus of the healthy benefits of the product, its affordability and

its delicious taste–it is a new innovative product that not only offers satisfaction to the

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needs of the consumers and meeting organization’s objectives but also providing

benefits to those that will eat it.

4.1 Target Market

Chelly’s Sweets and Pastries markets are people that are health conscious

but also enjoy snacking on sweet delicacies. Its target market will be customers that

are willing to purchase ages 7 years old and above approximately 65 years old,

lower to middle class earners mainly from the Municipality of Mexico, Pampanga.

4.2 Positioning

4.2.1 Attributes

Malvoron is a perfect dessert or snack and it will not only offer satisfaction to

the palettes of the consumers but it also provides various health benefits.

4.2.2 Price and Quality

The Malvoron offered by Chelly’s Sweets and Pastries is cheaper compared

to other malunggay filled desserts introduced to the market, making it affordable for

lower to middle class earners will be its competitive advantage. Since it is made from

fresh malunggay leaves, the company assures that it will be thoroughly selected for

grinding and mixing with other raw materials.

4.2.3 Benefits

The flavor used to the Polvoron is Malunggay it is made as the moniker

Miracle Tree, for almost all of its parts have therapeutic and medicinal values.

Malunggay has also earned the name Nature’s Medicine Cabinet because of it has

90 nutrients, 46 antioxidants, 36 anti-inflammatory properties, 18 amino acids, anti-

cancer properties, anti bacterial properties, antiaging properties, properties that keep

bad cholesterol in check, omega3 oils, and chlorophyll. Aside from that since it uses

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fresh leaves rather than powdered ingredients it becomes more fortified with

nutrition.

4.2.4 Product User

This pandemic teaches consumers to be aware of what they eat and what

they take. Therefore, Chelly’s Sweets and Pastries want to focus the product to

serve for health-conscious consumers – consumers that enjoys eating sweets for

snacks while benefiting the countless positive effects, vitamins and minerals offered

by the Malunggay leaves.

4.2.5 Competitor

What makes Chelly’s Sweets and Pastries Malvoron different from other

products or to its competitors is the experience of affordable yet fresh snacks with

less sugar and the use of more nutritious milk as it advantages to its competitor.

4.3 Marketing Programs

A marketing program is a coordinated and well-designed set of activities by a

company to increase sales and to achieve marketing objectives. On the other hand,

Marketing objectives are planned and tactical goals that fit the products’ strengths.

Therefore Chelly’s Sweets and Pastries will prepare budget for marketing and will

select appropriate marketing programs to introduced the product in the market.

4.3.1 Product/ Brand

Chelly’s Sweets and Pastries will be offering pre order for bulk orders and will have

stocks for passersby and daily customers. Unlike commercial polvoron Chelly’s

Sweets and Pastries Malvoron will use less sugar, fresh malunggay and more

nutritious milk making it appropriate for health conscious consumers.

4.3.1.1 Source of Raw Material

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 Malunggay will be coming

from the same barangay the

business is located in fact the farm

of malunggay is also owned by the

immediate family of the owner of

Chelly’s Sweets and Pastries

which can assure to serve fresh

harvest malunggay leaves to

sustain the nutrients of the Figure 3 – Map of Chelly’s Sweets and Pastries source of Raw Materials

ingredients. While the rest of

the ingredients such as flour, powdered milk, sugar, and margarine coming will be

supply by direct supplier from the market of Mexico , Pampanga which is 11.4 km

away from the store but since the management buy at bulk it can avail free weekly

delivery from the supplier.

4.3.1.2 Quality Control and Food Safety

Chelly’s Sweets and Pastries will be implementing the proper food

handling and preparation. The use of sanitize utensils, clear and food grade hand

gloves, hair nets, apron, face mask will be followed in the production. Aside from that

the management will follow the standard recipe and procedure to maintain the taste

and quality of the product.

4.3.1.2.1 Shelf life and spoilage

The shelf life of the Malvoron since it is home-made and no preservatives

added are about a month stored at a room temperature. But to prolong shelf life,

keep refrigerated or chilled.

4.3.1.3 Tools and Equipment

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 a. Gas Stove – is a stove that usually fueled by liquefied petroleum gas for

cooking purposes.

b. Chiller -it is a cooling machine use to store ingredients like margarine, and

the malunggay if ever not be used in the same day. It simply removes heat

from materials to prevent spoilage and maintain freshness.

c. Mixing Bowls- this are small to large bowls use to mix all dry and wet

ingredients. It’s a round shape makes it easy to scape ingredients on the side

leading to well combined mixture.

d. Measuring Tools- It is one of the very important tools since you need to

maintain the taste, size, uniform and quality of the product.

e. Wooden Spoon – is a large and big spoon than usual that is use for stirring

and mixing ingredients in cooking. It is made with wood and has a long

handle. The management prefer to use wooden spoons when cooking since it

does not transfer heat as much as metal spoons.

f. Frying pan- the management prefer to use non sticky frying pan rather than

saucepan in toasting the flour and melting the margarine as well.

g. Strainer – use to remove or separate large particles or unwanted particles to

have a smooth and no big objects will be added to polvoron. In Chelly’s

Sweets and Pastries it is use in straining the flour and malunggay to make the

mixtures soft.

h. Polvoron Molder – it is to standardize the shape and size of polvoron and to

make it more compact and appealing. In the case of Chelly’s Sweets and

Pastries they use oblong shape and large size polvoron molder.

i. Blender – it is use in mixing, grinding , chopping , blending, whisking, grating

and pureeing any ingredient. In case of Chelly’s Sweets and Pastries it is use

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 in grinding the malunggay leaves to make it smooth when added to other

ingredients.

4.3.1.4 Physical Features and Production Process

Poloron Recipe

Preparation Time – 15 mins Cooking Time 15 mins -Total Time 30 minutes

Servings for 55

Ingredients:

grams all 350 grams 250 grams 125 grams

ose flour powdered Sugar malunggay leaves
milk

Procedures:

1. First, prepare malunggay leaves to be use, let it dry for at least 2 to 3 days. When

it is already dry blender it until it become soft powder in texture.

2. Strain the flour to make the flour soft with no big objects then put in the frying pan

and toast till light brown in color. Do not leave it alone when toasting it to properly stir

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and mixed and turn into light brown preferably not to be very brown because taste

might be different.

3. Cool down the toasted flour and stir it to maintain its soft texture.

4. Afterwards, mixed the powdered milk. Mixed well until mixtures where properly

distributed.

5. In a pan melt a butter until it reaches the liquid form, preferably not overcooked.

Then settle down for a while.

6. Put the sugar on the mixture of flour and powdered milk mixed together.

7. Strain the grind malunggay leaves then add to the mixture.

8. Check the mixture of sugar, powdered milk, malunggay leaves and flour if no hard

parts. If no hard parts put the melted butter in the mixture and mix well. While if the

mixtures contain hard particles stain the mixture to maintain the soft texture before

adding the melted butter then mixed it well.

9. Mold the overall mixture, use the polvoron molder to form the desire shape and

size.

10. Settle it on a flat container for a while in a room temperature before packaging or

you can put it in a chiller to make sure powder wont collapse.

11. While waiting for the mixture cut the Japanese paper into the desired size then

prepare for packaging.

Figure 4: Chelly’s Sweets and Kitchen Layout

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 4.3.1.5 Packaging and Labelling

Packaging of the product

Packaging main function is to protect product

from damage, dust, dirt, leakage, pilferage, evaporation, watering, and contamination

and so on. But today packaging is one of the factors that can attract customers to

purchase a product. It is very helpful if the product packaging is reusable, recyclable

or biodegradable that makes the business ecological and safe. Chelly’s Sweets and

Pastries will be offering the product that uses a paper board material box.

4.3.2 Price / Value

Price is simply the monetary value of the product it might be a good or

services it is the quantity of payment given by one party to another party in return for

one unit of goods and services. Price can be set by a seller or producer and can be

regulated by the government.

4.3.2.1 Pricing Objectives

Chelly’s Sweets and Pastries pricing objective will make sure that product

price will be affordable and satisfactory to consumers without compromising the

quality and the healthy benefit of the product. It will not be too cheap so as not to be

perceived as low-quality. Inversely, it will not be priced too expensively so it can

attract a lot of clients. Chelly’s sweets and Pastries will ensure that Malvoron will be

affordable yet competitive product as compared to its competitors.

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 4.3.2.2 Pricing Methods

Reasonable pricing of Chelly’s Sweets and Pastries is shown below on table 1.

Ingredients Qty UOM Unit Cost Total Cost

All purpose flour 91 grams 0.028 2.548
Powdered Milk 64 grams 0.29 18.56
Margarine 45 grams 0.072 3.24
Sugar 45 grams 0.048 2.16
Malunggay Leaves 23 grams 0.08 1.84
Total Cost Raw Materials: 28.348
Labor Cost 5
Overhead Cost 5
Packaging 7
Delivery Cost 5
Total Cost 50.348
Mark Up % 50%
75.522
Selling Price of 1 pack (10 pcs. ) net weight: 250 grams or P75.00
Table 1: Malvoron cost

4.3.2.3 Pricing Strategy

Since Raw Materials is not hard to find and can buy in retail as well. The

costing was made base on per pack or unit since it would be easier to compute for

the accurate pricing strategy to impose on the items .The management will use the

Cost-Plus Pricing or also known as Markup pricing. This strategy uses the cost of

buying the product from the producer, plus amounts for profit and for expenses not

otherwise accounted for. The total cost of producing the product adding the mark uo

percentage basically determines the selling price. Table 1 shows that Malvoron has

an estimated total cost of production of P 50.348 per unit and desired a markup of

50% leading to its selling price of P75.00 per unit.

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 4.3.3 Distribution and Value Chain

Distribution is the process of making a product or service available for the

consumer or business user who needs it. This can be done directly by the producer

or service provider, or using indirect channels with distributors or intermediaries.

While a value chain refers to the activities it takes to create a product from start to

finish such as design, production, and distribution that take place within a company

in order to deliver a valuable product to market.

Chelly’s Sweets and Pastries has a physical store located at the house of the

owner but still offer it online and accepting pre orders for bulk orders since the

business production capacity is limited only. The management will only hold limited

inventory on the store and the production will be twice to thrice a week to serve drop

by customers and small orders online. While for Bulk orders once the order is

placed, that is the time to purchase or ask for advance delivery of raw materials

since the delivery was good only for one week production to maintain and ensure

that ingredients are fresh. Once raw materials are complete production will take

place. This process includes preparation of ingredients, equipment and tools, and

packaging materials. Once production is done, it will be delivered to bulk buyers by a

rider. Finally, the end of chain will be the consumption of the products by customers.

4.3.3.1 Place

Chelly’s Sweets and

Pastries is in the corner lot of

Purok 7 Capilinia Road ,San

Jose Malino , Mexico ,

Pampanga accessible through

Mexico- Calulut

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Road ,Mexico- Arayat and Mexico-Magalang Road. Making it available and visible to

its target market.

4.3.4 Marketing Communications

Marketing communication is a fundamental and complex part of a

company's marketing efforts helps to move products, services, and ideas from

manufacturers to end users and builds and maintains relationships with customers,

prospects, and other important stakeholders in the company. Its focus is to inform

the market about the availability of the product, Chelly’s Sweets and Pastries will

make use of the following 4 marketing strategies: advertising, sales promotion, public

relations and word of mouth.

4.3.4.1 Advertising

In today’s new generation the most trending way of advertising is through

online advertising. Chelly’s Sweets and Pastries will have its Facebook page and

Instagram account where customers can see them. Chelly’s Sweets and Pastries

Malvoron will post catchy photos and captions and will also create a video clip where

in the main emphasis is how Malunggay Polvoron care to customer’s health.

Management will also post in other groups that are made for online selling to tap

more market.

4.3.4.2 Sales Promotion

Sales promotion is the process of persuading a potential customer to buy the

product it is a tactic design to boost sales. The promotional strategies that may be

applied by Chelly’s Sweets and Pastries Malvoron are the following:

● Offering free 10pcs +1pc for the first 100 customers on its first three days of

opening as its promotional sales.

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 ● Free delivery with a minimum purchase of P1,000.00 within municipality of

Mexico area.

● The viral periodic sale such as 3.3 ,4.4 etc. During these dates, Baloy’s will

offer discount such as 10 pcs. + 1pc or free delivery within Mexico Area with a

minimum one-time order of P500.00.

● Reseller’s Package wherein they can get a free 1 pack (10 pcs) of Malvoron

once they have ordered 15 packs of Malvoron.

4.3.4.3 Public Relations

Public relations help the business earn customers’ trust, establish valuable

relationships and build brand awareness. Chelly’s Sweets and Pastries will have the

following strategies:

● Good customer relationship in-store and online

● Inviting influencers that are popular in health awareness to promote the shop

and its products, particularly its new product which is Malunggay Polvoron.

● The owner, will join local associations to widen the network and

promote his business and products.

● Venturing with the community like participating in the feeding programs of the

government.

4.3.4.4 Word of Mouth

Chelly’s Sweets and Pastries will encourage its customers to submit review

or tag the facebook page or Instagram account of the shop as they express their thoughts

or feedbacks with the product. As a way of motivation Chelly’s Sweets and Pastries can

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 use promotional strategy like sraffle for all the customers who submit their entry this is a

good gimmick to encourage customer to have feedback and like the page or account of

the shop. To gain positive feedbacks Chelly’s Sweets and Pastries will do its best in

delivering the quality of the products and service to its customers.

5.0 Financials

In this section, Chelly’s Sweets and Pastries financial projections, particularly sales ,

expenses and profit projections, were illustrated for the management evaluation on how

malunggay polvoron (Malvoron) can contribute to the overall revenue and profit of the shop. It

reflects the financial performance of the product when marketing and financial objectives are

met or if it doesn’t meet what things need to be done.

a. Sales Forecast

Sales forecasting is the process of estimating future sales that enables

companies to make better decisions. It can help in planning, budgeting , and risk

management. It allows company to effectively and efficiently allocate resources for future

growth and to manage its cash flow.

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 Chelly’s Sweets and Pastries Malvoron sales forecast was computed based on the

marketing objectives found in section 3.1.2 of the marketing plan.Table 2 below shows the

projected sales for the first three years where in sales amounting P 519,750.00 was the

projected for the first year with an increase of 10 % annually. The Price of Malvoron will

increase by 5% annually to support the management against inflation.

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 Note: Units produced projected to increase by 10 % annually, while Direct Materials, Packaging,
Direct Labor, Delivery and Over Head Cost are projected to increase 5% annually.

The target unit produced for three years was computed based on the following

assumptions:

● To Sell 330 packs on the first month and increase it by 15 % for the

succeeding months on its 1st year.

● To have 10 % increase in sales on the 2nd and 3rd year respectively.

b. Projected Income Statements

Table 5 below shows the projected income statement which includes

projected sales, cost of goods sold, and other operating expenses for the first three

years of producing malvoron.

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 In the projected Income Statement of Chelly;s Sweets and Pastries

Malvoron , Unit of item sold was projected to increase 10 % yearly, Cost of Goods

Sold was projected 5 % increase yearly , Operating Expense was estimated at 10% of

sales and selling price increased by 5 % annually to maintain an increasing annual

net income every year.

The operating expenses includes supplies expense, transportation,

telecommunication, internet, taxes and licenses (distributed), and other expenses

that cannot be directly associated with the product.

While cost of goods sold is composed of direct materials, direct labor,

packaging, delivery and overhead associated in producing malvoron. Table 3 shows

the detailed costing of the it while Table 5 below shows the computation of the

projected cost of goods sold shown in the Projected Income Statement.

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 6.0 Controls

Marketing Control is the process of monitoring the proposed plans as they proceed

and adjusting where necessary. The purpose of the controls is to ensure that the

company achieves the sales, profits and other goals established in this marketing plan.

Thus, Chelly’s Sweets and Pastries follows the control process below wherein the

marketing and financial objectives and goals are being set and compared to actual

performance. If objective not achieve and changes is needed in that case the product

performance will be adjusted on the most effective and efficient way to achieve the

objectives.

PERFORMANE PERFORMANCE CORRECTIVE

GOAL SETTING :
MEASUREMENT: DIAGNOSIS: ACTION:

What do we What should

What is Why is it
want to we do about
happening? happening?
achieve? it?

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6.1 Implementation

The success of any marketing plan will depend on how well it is implemented and

managed. Malvoron is a new product of Chelly’s Sweets and Pastries, each step will be

carefully implemented and monitored as follows:

a. Set the right expectations: it is important to remember that marketing is not a

quick fix it is not a marathon and not a sprint as well. Successful business takes

time, it will take some efforts , time , trial and error to build the right foundation .The

first month of Chelly’s Sweets and Pastries Malvoron was not easy but the

management will do aggressive marketing promotions especially online to achieve

its objectives .

b. Secure Resources: It is important to look at what are resources you need

to establish the business. Chelly’s Sweets and Pastries must check the tools,

materials and equipment, especially raw materials availability and identify

alternative supplier for some errands for contingency plan in the future.

c. Build out Timeline and Tasks: Chelly’s Sweets and Pastries will build

project timeline of activities in order to monitor the progress of the plan. This will

help the business to track down activities and deadlines to manage the business

well.

d. Set up a dashboard for tracking success: You can’t manage what you

don’t measure . That’s why it is important to use tracking tools to check progress or

status of the business. Chelly’s Sweets and Pastries will set a simple Key

Performance Indicators (KPI) to assess if the goals are met and if the plan is

running on track.

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 e. Monitor and Check in regularly- Chelly’s Sweets and Pastries will prepare

daily sales summary wherein actual sales will be compared to projected sales

including the percentage of accomplishment of target sales. In addition, a monthly

sales analysis will be prepared to study any variance between actual and projected

sales for the month.

f. Be willing to adopt- When a particular marketing effort isn’t producing the

desired results set by the management therefore Chelly’s Sweets and Pastries

must exert extra effort to look for ways to improve the tactic. However, if the

strategy didn’t work look for new ideas or tactics to reach audience. Establish

customer feedback to monitor customer attitude and reveal what customers feel

about the company, its products, services and social and community programs. A

customer feedback can be the management basis to improve the marketing plan

because a satisfied customer is the best business strategy of all. Chelly’s Sweets

and Pastries will involve its customers in planning what to do next especially in

these fast-changing times.

6.2 Contingency Plans

In business especially for start up business it is a trial-and-error procedure.

Therefore, having a contingency plan is essential having back up plans in place for

when things go differently that expected at it will not be only a Plan B but atleast Plan

B-Z. To be able to prepare one, the management must identify specific events need

to happen to trigger the implementation plan and can cause uncertainty to the

business. The risks associated with the shop includes:

▪ Price Fluctuations –Especially in this pandemic time, price

fluctuations in raw materials or other supplies such as LPG, inevitable, unpredictable

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 and hard to control. Chelly’s Sweets and Pastries will try to negotiate contracts with the

suppliers, especially for the raw materials, renewable quarterly, semiannual, annually or

as defined in the contract. This allows the management to accurately forecast costs of

raw materials and profit margins. However, if it will not be applicable the management

will check on the other supplier that supplies same items to validate where the

company can save. However, if its really uncontrollable it will be either imposed price

increase of the Malvoron or decreasing the weight and size of the Malvoron therefore

there will be no longer impose price increase.

▪ Competition – it is inevitable in any business all business encounter competition.

No matter what your product or service you offers, it will always face competition and

it comes in many forms. Knowing and understanding your competitors their business

is the key to success. Try to know their products or service well, the nature of their

distribution, their implementation of new technology and how customers view their

brand. First step is to try to go to their store, try their product. See what will be the

difference, do you need to improve the taste since their offering tastier product, do you

need to improve your packaging the management will try to figure out to have its

competitive advantage to its competitor. Next is to speak to customers, their feedback

could mean a lot for the success of the business. Then, check your marketing and

promotional activities, CSR (Corporate Social Responsibility) that can have a big

impact to customers and enhance your strengths to create opportunities by it.

Example is improving your product by making it healthier than usual or improves your

customer service experience to create customer loyalty. Give customers reason to be

loyal product.

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This is well done!

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