Final Bus. Plan Itm 2

Republic of the Philippines
ILOILO SCIENCE AND TECHNOLOGY UNIVERSITY

La Paz, Iloilo City
COLLEGE OF INDUSTRIAL TECHNOLOGY
BUSINESS PLAN OF D’ SWEET COFFEE
Presented by:
Masadia, Lizamae M.
BIT - CT - 3A
Presented to:
Erman Gange
Subject Teacher
La Paz, Iloilo City
Table of Contents
I. Executive Summary
a. Company
b. Product and Services
c. Competitive Advantages
II. Background and Business Concept

a. Vision and Mission
b. Objectives
c. Philosophy
III. SWOT Analysis
IV. Marketing Plan

a. Target market
b. Product
c. Price
d. Place
e. Promotion
V. Sales Plan
a. Projected sales
b. Daily Sales Plan
c. Weekly Sales Plan
d. Monthly Sales Plan
VI. Operational Plan

a. Forms of Business Ownership
b. Staffing and Cost
La Paz, Iloilo City
c. Functions of Personnel
d. Manufacturing Process
e. Operating Process
VII. Financial Plan

a. Cost of Goods Sold
b. Projected Sales
c. Operating Budget Expenses
d. Projected Income Statement for Year One (January-December)
e. Cost of Goods Sold & Operating Expenses Year 2& 3
f. Sales and Profit
VIII. Conclusion Intent

La Paz, Iloilo City
I.EXECUTIVE SUMMARY
Company
D’ sweet Coffee is dedicated to consistently providing high customer
satisfaction for its customers who wants to experience a coffee-flavored dessert. It
will be served for both men and women, starts at teenager and will also accept
appointments as well as orders. This will allow customers to have their satisfaction in
one single purchase. This will also maintain a friendly and creative work which
respects ideas and hard work of its competitors. Coffee-flavored dessert served with
unique way of having coffee which is a dessert.
The business will be registered as sole proprietorship. It will be located the
Barangay Rizal Street, La Paz, Iloilo City. It will cater the people in that barangay
especially the youth or students as well as adults who wants to eat unique coffee-
flavored dessert.
Product and Services

Unlike other coffee business concept, they usually drink coffee and used
different flavors and only focused on its taste. D’ sweet Coffee is the best choice
when it comes to customers’ taste preference and at the same time cares for their
health. The business introduces the first coffee-flavored dessert in the selected place.
Coffee is known for number one need of every people, and it is part of their lives. The
concept of the business focuses on the health of customers while satisfying their needs.
Competitive Advantages
Potential competitors might include established coffee companies that already
have a foothold in the market and are expanding their offerings to include dessert-
inspired flavors. Additionally, existing dessert brands might decide to diversify their
product lines to include coffee-flavored items, presenting another competitive
challenge.
The concept of coffee is not so new in today’s market and it is well known to
everyone. Many businesses have established different types of strategy, hence, only
La Paz, Iloilo City
few of them leads the market. The concept of innovativeness plays an important role
to achieve the competitive advantage of one business to another.
Our customers are health-conscious, community-oriented who enjoy healthy
coffee-flavored dessert at an affordable price. This will be our primary selling-point.
Putting a business like production of coffee will help more to develop of socio-
economic condition of a country. As the business provide affordable price, good
quality service to consumers and healthy dessert to be satisfied in the future, the
business will generate employment for the people who have skills and passion for
food preparation.
While the business manufactures its product, it also promotes environmental
activities such as: 1) green promotion- promotes environmental attributes of products;
2) Eco-friendship-includes wastes reduction activities; 3) Eco-sponsoring for
environment. The business also minimized its usage of plastic and provides trashcans
for future retailer.
La Paz, Iloilo City
II. BACKGROUND AND BUSINESS CONCEPT
Filipinos are certified coffee lovers. Coffee plays a vital role in one’s life. It is
more than just a drink. Majority of the people kick-off their day with a cup of coffee.
With the growing demand for high-quality coffee and great service, D’ sweet coffee
will offer its customers the best prepared and unique coffee in the barangay of Rizal
Street, La Paz, Iloilo City.
As a proponent, I came up with the idea of a business wherein I will make a

coffee unique and new to everyone. To serve unique coffee because aside of coffee, it
can be a dessert at the same time but it is budget-friendly, and a coffee which you
cannot drink but eat as your dessert.
D’ sweet Coffee has a best seller menu which is banana coffee. It made up of
banana, coffee, graham, cream, and condense for our customers’ satisfaction. We also
offer a Bibingka Cake together with a cup of coffee.
A product which is different from other business. This time we will make a
coffee that you cannot drink but eat, it will not taste bitter but sweet, and a dessert for
your bitter day.
We will make it sure that it will cost affordable but will satisfy our customers,
and still the profit is good enough for the business.
Vision
To establish a product where there is more to do with a coffee that everyone

will enjoy and excite to explore more about unique coffee.
Mission
To produce a product with an eco-friendly ways of process, and to create

brand that will mark to the taste of people.
La Paz, Iloilo City
Objectives
1. To give people a unique taste.

It is different and new to the taste and eyes of everyone.
2. To earn money.
We will make sure that even it is affordable but still we can gain good
profit.
3. To change people’s perspective about coffee which is bitter to the taste.
It offers something new way of having a coffee which is sweet and a
dessert.
Business Philosophy
“ to sweeten up a bitter day”
D’ sweet Coffee will not be a common coffee but it will serves a dessert
coffee that surely will have a good feeling and new taste to everyone.
La Paz, Iloilo City
III. SWOT
Strength
1. Attractive to everyone.
Product design that will be both visually attractive to customers and designed
for something new to the taste and eyes of everyone by making a product which is
different from other business.
2. People want something new.
We served coffee that everyone will amaze of it because the unique way of
taking a sip of coffee and also our bibingka to make it cake.
3 Filipinos are heavy coffee drinkers.
To avoid from being bored in drinking coffee, we came up with a product that
never been served in the area.
Weakness
1 Lack of experience
In the business it is important that the workers are well trained so that the
business can progress. If we don’t have any experience in this business we cannot be
able to give the best to our customers and the business will not be able to progress
well and that is the weakness of this business.
2. Financial Resources
It is very vital in the business that we are about to build. We consider it as our
weakness because we need an enough money to comply all the needs of our business.
3 High risk
La Paz, Iloilo City
The product is unique and different from other business. We can consider it as
our weakness also because it is new to everyone so that is has a high risk that it will
not be successful.
Opportunities
1 Location
The business is convenient to the customer because it places near in the

schools, establishments and malls.
2 Feedback from costumers
It is important to have a feedback from our costumers so that we can improve
our product.
3 Fast growth
Expansion of branches to help motivate employees and helps the business to
have a positive image to costumers.
Threats
1 Competitors
This can degrade the prices of goods and services as the business attempt to
gain a larger market price.
2 Customer Perceptions
The feedback of our customers is the threat of our business because it reflects
the quality of our product.
3 Customer Needs
To give what the customers’ needs is our want to satisfy them. It is our threat
because the product can be not enough to the needs of customers.
La Paz, Iloilo City
IV. MARKETING PLAN
Marketing objectives
This aspect covers the market description of product, marketing plans and
objectives for both short and long term operations, establishing company’s
competitive advantage and marketing strategies applicable in terms of pricing and
promotion.
Marketing is the heart of every business. It can be defined as a set of activities

that involves any transaction or exchange of goods, services and ideas with the main
function of satisfying customers at the same time making profit through gaining sales
to achieve the organization objectives. Business will never exist without marketing
and proper planning with regards to the said aspect. D’ sweet coffee will offer its
customers the best prepared and unique coffee. A coffee that you cannot drink but eat,
it will not taste bitter but sweet, and a dessert for your bitter day. The product’s
objective includes (1) To give people a unique taste. It is different and new to the taste
and eyes of everyone. (2) To earn money. We will make sure that even it is affordable
but still we can gain good profit. (3) To change people’s perspective about coffee
which is bitter to the taste. It offers something new way of having a coffee which is
sweet and a dessert.
Target Market
Filipinos are known for having a “sweet tooth”. D’sweet Coffee is one of the
deserts or sweets in which Filipinos are looking for. That’s why the proponent came
to create a business in which coffee is the highlight. The proponent decided to place
their business at the barangay of Rizal Street, La Paz, Iloilo City.
Target Market—potential buyers of your product.
a. Students
b. Laborers
c. Office Workers
La Paz, Iloilo City
d. Residents
They are the target market because they are always busy and often have an
overtime on their work, they are often sleepy. They need a coffee which can be
their dessert.
Product: Its Nature and Sustainability
Business Logo Business Product
Product can be defined as anything that can be offered in market for attention,
acquisition, use, or consumption to satisfy need, want, demand or expectation. The
business will produce one of the “all-time favorite” desserts of many Filipinos: Coffee.
The name of the product will be known as D’SWEET COFFEE. Wherein, it is the
first dessert flavored coffee to be produced. The proponent came up with this idea
because of the desired of many Filipinos on sweet foodstuffs. Moreover, coffee plays
a vital role in one’s life. It is more than just a drink. Majority of the people kick-off
their day with a cup of coffee.
The name D’sweet Coffee was chosen because of the idea on how the product
will be done and produced. D’SWEET COFFEE came from the word dessert which is
sweet coffee on which the main ingredient, coffee will make into a sweet dessert. The
proponent found this name as simple but new to the customer’s preferences.
La Paz, Iloilo City
Future Product Plan
The proponents plan to create variety of dessert flavors like coffee, natural
flavorings like mango, strawberry, ube with cake which is bibingka. The business also
plans to add carts in which the product will be sold throughout places far from the
stores.
Pricing Scheme
Price is the whole amount in money that is equal, pricing for market,
penetration aim to attract buyers by offering lower prices on good and services.
Although the business is new in the market the proponent decided to use the method
pricing, for market penetration in which selling price is determined by adding a
percentage.
Product Selling Price Selling Price Selling Price

Large (Php) Medium (Php) Small (Php)
Coffee Banana 40 30 20
Bibingka Cake 40 30 20

Hot coffee 30 25 15
Iced coffee 30 25 15
Soda 30 25 15
Hot tea 30 25 15
La Paz, Iloilo City

Coffee banana + 100 80 50
any drink
Bibingka cake + 100 80 50
any drink
Future Pricing Plan
The proponents plan to give discounts to their proposed business-to-business

program that whenever they reach the numerical purchase quota of dessert coffee or
bibingka cake, or the retailers buy large quantity of dessert coffee or bibingka cake,
he/she will acquire discounts or freebies.
Place/Distribution Channel
The term distribution channel refers to the network of individuals and

organizations involved in getting a product or service from the producer to the
customer. Distribution channels are also known as marketing channels or marketing
distribution channels.
The business is located at the barangay of Rizal Street, La Paz, Iloilo City. The
proponent will use Direct Marketing Channel or known as Producer/Seller to
Customer wherein method of selling is directly to the end buyer from the
manufacturer with no middle man or intermediary involved.
Future Place/Distribution Channel Plan
In terms of channel distribution, the proponent plans to sell their products in

some places around Iloilo City and nearby cities. The business will coordinate to
nearby schools to sell the product. It will be also open in orders and delivery to
La Paz, Iloilo City
different kind of parties. With this strategy, the business will provide retailers to
widen the scope of its revenue.
Promotional Technique/Strategy
Promotion refers to raising customer awareness of a product or brand,

generating sales and creating sales and creating brand loyalty. It is one of the most
important elements of marketing mix, for it is the method of convincing or persuading
the customers to buy what’s being offered. Since the business is in the introductory
stage, intensive promotion is needed.
a. Flyer
b. Poster
c. Online advertising
Future Promotional Technique Plan/Strategy
As for promotion, the proponent plans to give some promos and contests for
its loyal customer for motivation and to maintain their loyalty. For a long period of
time, promotion will be a rare use for at least one year, customer is presumed to know
about this new product. Promotion will be used again if the business will launch new
flavors or varieties of product.
La Paz, Iloilo City
V. SALES PLAN
The D’ sweet Coffee industry is economically stable. Industry trends show

that as the time becomes more limited, people want faster, easier and more
economically services in one location. Customers are educated and more demanding
of quality product. With the growing demand for high-quality coffee and great service,
D’ sweet coffee will offer its customers the best prepared and unique coffee.
Projected Sales
To come up with the projected sales forecast in terms of peso value, the
proponent analyzed the possible quantity or unit of coffee to be sold per day and its
related prices based on selling price.
To get the sales, the quantity or unit to be sold is multiplied to its price:
Sales = Projected Quantity x Selling Price
Daily Sales Plan
(Product) Projected Selling Price Projected Sales

Quantity/Units (Php) (Php)
to be Sold
Coffee 45 20 900
Banana
Bibingka 45 20 900
Cake
Hot 45 15 675
Coffee
Iced 45 15 675
Coffee
La Paz, Iloilo City
Soda 45 15 675
Hot Tea 45 15 675
Coffee 45 50 2,250
Banana +
any drink
Bibingka 45 50 2,250
Cake +
any drink
Weekly Sales Plan (Store Opens 6 days/week)

to be Sold
Coffee 270 20 5,400
Banana
Bibingka 270 20 5,400
Cake
Hot 270 15 4,050
Coffee
Iced 270 15 4,050
Coffee
Soda 270 15 4,050
Hot Tea 270 15 4,050
Coffee 270 50 13,500

La Paz, Iloilo City
Banana +
any drink
Bibingka 270 50 13,500
Cake +
any drink
Monthly Sales Plan (24 days/month)

to be Sold
Coffee 1,080 20 21,600
Banana
Bibingka 1,080 20 21,600
Cake
Hot 1,080 15 16,200
Coffee
Iced 1,080 15 16,200
Coffee
Soda 1,080 15 16,200
Hot Tea 1,080 15 16,200
Coffee 1,080 50 54,000

Banana +
any drink
Bibingka 1,080 50 54,000
Cake +
any drink
The sales will increase 5% each year.

La Paz, Iloilo City
Total Sales Plan (12 months)

to be Sold
Coffee 12,960 20 259,200
Banana
Bibingka 12,960 20 259,200
Cake
Hot 12,960 15 194,400
Coffee
Iced 12,960 15 194,400
Coffee
Soda 12,960 15 194,400
Hot Tea 12,960 15 194,400
Coffee 12,960 50 648,000

Banana +
any drink
Bibingka 12,960 50 648,000
Cake +
any drink
La Paz, Iloilo City
VI. OPERATIONAL PLAN
This part of business plan answers how the proposed business shall be
managed before and during the operating periods. This includes information regarding
business ownership, staffing and its cost, functions of personnel (job description)
manufacturing process and space requirements.
Form of Business Ownership
Sole proprietorship is the form of business ownership that will be applied in

the business proposal. A sole proprietorship is a business structure owned by an
individual who generally has full control and authority over the business. The
business owner is referred to as the “sole proprietor” and exclusively owns all assets
and profits of the business. He or she is also personally liable for all the debts and
losses that the business might incur. As the simplest form of business in the
Philippines, the business registration process for a sole proprietorship is relatively
easy. Sole proprietorship is also the easiest to run since they do not have the same
formalities and regulations that corporations and partnerships have, such as board
meetings, board elections, share capital, etc.
Since the law treats the owner and the business as the same, the sole proprietor
only needs to register his or her name with the Department of Trade and Industry
(DTI) and secure local licenses and permits to commence business operations.
The table below shows the processing cost of attaining business license.
Particulars (documents needed) Total Cost
DTI/SEC registration P 150
Community Tax Certificate P 50
Barangay Clearance P 150
Location Clearance P 150
Fire Inspection Certificate – Bureau of Fire and Protection P 200
Fire Extinguisher P 2,500
Sanitary Permit P 200
Electrical Permit P 100
La Paz, Iloilo City
SSS/PhilHealth/Pag-Ibig Registration P 300

BIR Certificate P 2,500
Total 6, 300
Staffing and Cost
Staffing is the process of hiring eligible candidates in the organization or

company for specific positions. In management, the meaning of staffing is an operation of
recruiting the employees by evaluating their skills, knowledge and then offering them
specific job roles accordingly.
The table shows specific positions of personnel with corresponding cost.
Position Rate per Monthly SSS, Pag- Total Annual

Day Salary Ibig, Monthly Salary
(24 days) PhilHealth Salary
(12% basic)
Production P 300 P 9,000 P 1,080 P 7,920 P 95, 040
Staff
(Cook)
Cashier P 300 P 9,000 P 1,152 P 7,848 P 94,176
Total P 600 P 18,000 P 2,232 P 15,768 P 189,216
**for those with nine or less employees, the rate is Php295.
**for those with more than nine employees, the rate is Php365.
Functions of Personnel (Job Description)
a. Production Staff
A production staff or worker is responsible for operating and maintaining
equipment in a store or factory or warehouse and preparing items for
distribution. He or she involves in assembling and checking product parts,
La Paz, Iloilo City
ensuring that all machinery runs smoothly, and assisting in the shipment or
distribution of products.
b. Cashier
A cashier collects payments from the customers. He or she ensures that the
selling prices of products are correct as well as its quantities/units to be
sold before payment. She or he also assists customers by explaining or
recommending product offerings, answering questions, and processing of
exchanges or refunds.
Manufacturing Process
Manufacturing is the processing of raw material into finished goods through

the use of tools and processes. It is a value-adding process allowing business to sell
finished products at a premium over the value of the raw materials use. (Investopedia)
A. Equipment
To be able to make a sale, various equipment is needed in the operation of
the business. The table below shows the list of equipment to be used in the
manufacturing process of product.
List of Equipment Quantity/Units Peso Value

Automatic Drip Coffee Maker 1 15,000
Industrial Coffee Grinder 1 14,000
Oven 2 15,000
Hand Mixer 1 6,000
Total 50,000
La Paz, Iloilo City
B. Raw Materials Needed

This involves raw materials necessary to manufacture the product. The
table below presents the costs of raw materials in a monthly basis.
List of Equipment Quantity/Units Peso Value

Flour 3 sacks 3,000
Coffee 80 kg 8,000
Egg 60 tray 12,000
Banana 50 kg 1,500
Condense 20L 2,600
Cream 40L 5,200
Coconut 100 pcs 1,000
Sugar 1 sack 2,000
Grahams 200 packs 12,000
Baking Powder 50 kg 2,000
Margarin 10 kg 500
Total 49,800
Space Requirements
The business will rent a space in a commercial building located at Rizal Street,
Iloilo City. This will be the ideal location to establish the business since it’s very near
to the market area and accessible to the public. This area will be used for processing,
storage, administrative office, counter for transactions and restroom for customers.
Rent Cost
Monthly Rent 5,000
La Paz, Iloilo City
Operating Expenses
A. Utilities
Utilities expense is the cost consumed by the in a given period such as

electricity, gas, sewer, water, garbage collection and usage of telephone.
The table below shows the list of utilities expense of the business and its
estimated monthly cost.
Utilities Cost
Electricity 2,500
Water 500
Internet 1,000
Total 4,000
B. Sales (promotional strategies)
A selling expense is a cost incurred to promote and market products to

customers. These costs can include anything from advertising campaigns and store
displays to delivering goods to customers. The following estimated cost is on a
monthly basis.
Promotional Campaigns Cost

Flyer 500
Poster 500
Total 1,000
C. Depreciation
Depreciation does not represent a cash transaction. It only shows how much of
an asset’s value the business has over a period. Estimated depreciation for equipment
is given in the table below.
La Paz, Iloilo City
List of Equipment Cost Depreciation

Automatic Drip Coffee Maker 15,000 500
Industrial Coffee Grinder 14,000 500
Oven 15,000 200
Hand Mixer 6,000 100
Total 1,300
D. Insurance
The proponents will avail the services of an insurance company for its
business operations. This will ensure the reduction of business’ exposure to risk in
case of damage to or the loss of physical assets of the company. The amount paid is
charged on a monthly basis.
Insurance Total Cost

Property 1,500
La Paz, Iloilo City
VII. FINANCIAL PLAN
Cost of Goods Sold
Assumptions:
1) Start up capital in the production of goods is P299,400.00

This includes raw materials or other ingredients and necessary for
manufacturing process.
2) Additional P5,000 pesos for raw materials needed for the months of April-
December
Projected Sales Plan for Year One - Year Three
Assumptions:
1) Php 648,000 projected sales for the First Quarter

2) Projected sales growth of 5% for the succeeding 2nd Quarter (April, May,
June)
3) Projected sales growth of 6% for the 3rd Quarter (July, August, September)
4) Projected sales growth of 10% for the 4th Quarter (October, November,
December)
La Paz, Iloilo City
Operating Budget Expenses (January-December)

La Paz, Iloilo City
Projected Income Statement for the Year 2024
Sales Growth Year 2 & 3 - 20%
Cost of Goods Sold & Operating Expenses Year 2& 3- 10%

La Paz, Iloilo City
Sales & Profit

La Paz, Iloilo City
VIII.CONCLUSION INTENT
Based on the proponent’s analysis and evaluation of the target market, it is

foreseeable that this business plan has a great potential to generate accumulative
profits. However, the proponent is planning to innovate some other services of fully
package the needs of the target market and to meet prospects expectations. This will
require more equipment, machines and other resources as discussed in the future
marketing plans of the business.
As shown in the financial plan section, there is a big opportunity for this
project to succeed, thus, will be able to help our local economy. Therefore, I the
proponent, conclude that the business will be well-known for its uniqueness and taste
to our valued customers.

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Republic of the Philippines

ILOILO SCIENCE AND TECHNOLOGY UNIVERSITY

BUSINESS PLAN OF D’ SWEET COFFEE

II. Background and Business Concept

III. SWOT Analysis

IV. Marketing Plan

VI. Operational Plan

VII. Financial Plan

VIII. Conclusion Intent

Product and Services

II. BACKGROUND AND BUSINESS CONCEPT

As a proponent, I came up with the idea of a business wherein I will make a

To establish a product where there is more to do with a coffee that everyone

To produce a product with an eco-friendly ways of process, and to create

1. To give people a unique taste.

2. People want something new.

3 Filipinos are heavy coffee drinkers.

The business is convenient to the customer because it places near in the

2 Feedback from costumers

It is important to have a feedback from our costumers so that we can improve

Expansion of branches to help motivate employees and helps the business to

have a positive image to costumers.

IV. MARKETING PLAN

Marketing is the heart of every business. It can be defined as a set of activities

Target Market—potential buyers of your product.

Product: Its Nature and Sustainability

Business Logo Business Product

Future Product Plan

Product Selling Price Selling Price Selling Price

Product Selling Price Selling Price Selling Price

Product Selling Price Selling Price Selling Price

Future Pricing Plan

The proponents plan to give discounts to their proposed business-to-business

The term distribution channel refers to the network of individuals and

Future Place/Distribution Channel Plan

In terms of channel distribution, the proponent plans to sell their products in

Promotion refers to raising customer awareness of a product or brand,

Future Promotional Technique Plan/Strategy

The D’ sweet Coffee industry is economically stable. Industry trends show

Sales = Projected Quantity x Selling Price

Daily Sales Plan

(Product) Projected Selling Price Projected Sales

Hot Tea 45 15 675

Weekly Sales Plan (Store Opens 6 days/week)

(Product) Projected Selling Price Projected Sales

Hot Tea 270 15 4,050

Coffee 270 50 13,500

Monthly Sales Plan (24 days/month)

(Product) Projected Selling Price Projected Sales

Coffee 1,080 50 54,000

The sales will increase 5% each year.

Total Sales Plan (12 months)

(Product) Projected Selling Price Projected Sales

Hot Tea 12,960 15 194,400

Coffee 12,960 50 648,000

VI. OPERATIONAL PLAN

Form of Business Ownership

Sole proprietorship is the form of business ownership that will be applied in

SSS/PhilHealth/Pag-Ibig Registration P 300

Staffing and Cost

Staffing is the process of hiring eligible candidates in the organization or

The table shows specific positions of personnel with corresponding cost.

Position Rate per Monthly SSS, Pag- Total Annual

Functions of Personnel (Job Description)