Chapter I INDUSTRY ANALYSIS

I. INDUSTRY TRENDS The food service business is one of the largest industries in the country. The average Filipino spends 15 20% of his/her income on meals away from home. These numbers has been increasing for the past years. Although the food industry is competitive, the lifestyle changes created by modern living continue to fuel its steady growth. More and more people have less time, resources, and ability to cook for themselves. Trends are very important and Ice Creamazing is well positioned for the current interest in lighter, healthier foods at low prices. Food Cart Business is thriving in the Philippines with small capital, easy set-up and a good chance of success. If you will look at the market trend today, Food cart business is the choice of most aspiring entrepreneurs. Food cart business offers the most portable type of food service, since all the things needed for your business are in the cart. Industry estimates that more than P1 billion in sales turned over every year from the food cart businesses. With this amount, no doubt that Food Cart is the hot business in the market. The reasons why people choose a cart set-up over a full store because:

Carts are easier to manage and operate;

They require less rental cost maintenance and few workers: Carts are easy to transfer if the location is not so good Carts are ideal for businesses offering limited products or services. Carts are easy to launch; It is easier to get a space or location for a cart because it requires just small area; and

It is easy to expand a cart business because it entails less capital

Food Cart Business also has an advantage in putting up: it can capture a wider market and being located along the walkways of malls and commercial centers Small capital, easy set-up and a good chance of success are just some of the reason why Food Cart Business is thriving in the Philippines. If you will look at the market trend today, Food cart business is the choice of most aspiring entrepreneurs. A mobile food cart is a business where you can start on low capital ranging from P30,000 to a maximum of P300,000. But it could be a little lower though, depending on how you will put it up by franchise or on your own. Some companies offer food cart franchise for as low as P10,000 per package that includes, the cart, product, uniform for the crew and training. Over the last few years, food service carts have sprouted all over the metro from MRT and LRT station, malls, sidewalks, church, schools, markets etc.name it and for sure, youll find a food cart there. Today, there are about 800

different food cart formats available in the marketpizza, waffle, fishball, siomai, pearl shakes, baked goodies, rice in a box, hotdog and a lot more.

Industry estimates that more than P1 billion in sales is turned over every year from the food cart businesses. With this amount, no doubt that Food Cart is the hot business in the market! But, most of all, you need to consider a lot things. First is the cartwhich is the basic component of the business. The cart must have a colorful and bold big signage to catch the attention of the customers. The cart is a self-contained kitchen, so we need to keep it clean all the time. The sturdier the cart the better, since it is mobile, it will be easier to go from one location to another. If we have a nice cart, then the next thing to consider is Location. Location, plays a big part in the success of our food cart or in any business for that matter. We have to think of a good location where people frequent and can see what we are selling. But not all places cramming with people is a good venue just like MRT and LRT station. Lastly, we have to match our good location with the right product at a good price. People will keep coming back on our food cart biz, if we sell good quality products at a very reasonable price. When starting a business dont be too greedy with the profit and be prepare for setbacks. Be creative and update the products every two months so that the customers will not get tired of what we sell. Always think that there are a lot of competitions in the market.

I.2 SOCIO CULTURAL Population For the year 2009, the projected population of Batangas City based from CY 2007 POPCEN of the National Statistic Office ( NSO ) is 309,935 with a population growth rate of 2. 46 percent. Barangay Sta Rita has the biggest population of 20,467 while Barangay 16, an urban barangay has the smallest population of 71. (CY 2007 POPCEN of the National Statistics Office {NSO})

Male- Female Ratio The ratio of male to female population of the whole city is 0.99:1.00 with a female population slightly higher. Out of the 105 barangays, 53 barangays have higher male population, 52 barangays have higher female population and 1 barangay, Malitam has equal male- female population. (CY 2007 POPCEN of the National Statistics Office {NSO})

Population Density

With a land area approximately 28,541.44 hectares and a total population of 309,935 the city has a population density of 10.86 persons per hectare or 1,086 persons per square kilometers. The population density of the entire city is far below the population density of the Poblacion which is 158 persons per hectare. (CY 2007 POPCEN of the National Statistics Office {NSO})

Urban Rural Population In addition to the 24 barangays in the Poblacion are the 17 urbanizing barangays, namely: Alangilan, Balagtas, Bolbok, Calicanto, Cuta,Gulod Itaas , Gulod Labac, Kumintang Ibaba, Kumintang Ilaya, Libjo, Malitam, Pallocan Kanluran, San Isidro, Santa Clara, Sta. Rta Aplaya, Sta. Rita Karsada and Wawa. These Barangays are situated within the immediate periphery of the Poblacion. Urban population is 174,295 while rural population is 135,640 representing 56% and 44% respectively of the total city population. Household Characteristics Batangas City has a total projected households of 62,856 for cy 2009. Out of this figure, 5,130 or 8.16 % reside in the poblacion. The projection average household size in the city for CY 2009 is five ( 5 ). Barangay Sta . Rita has the household number of 3,508 while Barangay 16 in the poblacion has the lowest household number of 26.

Average Income/ Expenditure Per Household Base on the final result of the CY 2000 family income and expenditure survey (FIES) by the National Statistics Office, the average income per household is P 180,912.00 per annum or P 15,076.00 per month while the average expenditure per household is P 174, 837.00 per annum or P 14, 569.75 per month base at the current prices. (CY 2007 POPCEN of the National Statistics Office {NSO})

I. 3 TECHNOLOGICAL

For us to be more competitive we think of some services that we are going to add up in our food cart. To spice up and of course to attract more customers in order to accommodate our product. We only think to put a free charging device beside our food cart, so for those customers who are having trouble due to low batteries, they can chill up with us by having our fried ice cream and at the same time, charge their phones. This is another way on how we would attract our customers for them to buy our product. Since we are planning to put our business inside the mall of SM City Batangas, our customers would likely to access the internet by the Wifi service that the SM provide for them. We also think of some ways on how we can decrease the spent of time the customers would take in ordering our product.

Instead of using the usual way on getting their orders, we are planning to have a POS (point of sales). In here our wait staff wont have difficulty on computing what the customer will order, because the POS itself will do that part to be easier for our staff. Through this POS we are looking forward that we are having an increase selling opportunity because our staff would be more productive by using the POS and it lessen the waste of time than the other or usual way of taking customers order.

I. 4 ECONOMIC

Before, The city of Batangas is known as the "Industrial Port City of Calabarzon" and classified as one of the fastest urbanizing cities in the country today which became the accelerating point of trading, commercial and industrial activities in the locality. Batangas City Port is the center for transportation of goods produced in the hinterland. Also, most Batangueos before are famers, or fisherman. Although some of the Batangueos had finished or had diplomas having their 4year courses, some of them still choose to put up businesses such as Food Cart.

Batangas is the vibrant new access point for industries locating in the dynamic CALABARZON region and plays a very significant role in the industrial development of the Southern Tagalog region. The prime agricultural lands of the province provide an abundance of rice, sugar, coffee, coconut and rootcrops. The seas around Batangas are rich sources of fish. Excellent pasture land have made the province a leading dairy and cattle provider. Batangas is also endowed with large quantities of mineral deposits such as limestone, gyspsum, clay. The International Port in Batangas City, or the PPA Philippine Ports Authority which upgrades its facilities, provide an excellent alternative port that links Batangas and the Southern Tagalog region with other countries. The province is linked with Metro Manila via the Southern Luzon Access Road. A good network of roads link all the province's municipalities. Telecommunications is reliable with both land-based and cellular phone services. Power and water resources are adequate to meet industrial demands. Almost 1.5 million Filipinos reside in the province and provincial literacy rate (96.5%) is above the national figure. This provides the province a diligent and well-educated workforce for industrial pursuits. The access provided by the Batangas International Port makes investments in the Batangas Regional Agro Industrial Center (BRAIC) very attractive. At present, some of the country's industrial giants, such as Pilipinas Shell, JG Summit Petrochemical Corporation and General Milling Corporation, are located in the center. Investing in resource utilizing industries, such as food

processing, beverage manufacture, feeds manufacture, and cement processing, are profitable ventures. The identification of the city as an industrial growth center in the CALABARZON region resulted in the increasing number of business

establishments. SM City Batangas was founded and opened with employed thousands of Batangueos.

I.5 POLITICO-LEGAL

Many of the residents here in Batangas are aiming for a job. Thats why by means of providing a job and other livelihood such as entrepreneurship and other skills training is a big concern for the local government. Having a new set of government, means more opportunities coming. Through the help of Mr. Eduardo B. Dimacuha as the formerly Mayor of Batangas City, he had implemented many projects that helps Batangueos during his term. There were different jobs opened, and some trainings that help every individual to open their mind for the progress of the city of Batangas. As of now, the political situation in the country is very chaotic. Because of the 2010 elections and due to the end terms of the political persons or having a new set of administration, we are now facing a difficulty in terms of political

aspects. And because of this, some of the policies given by the government about operating a business were strictly implemented. In order to operate a business, one should undergo some requirements like Licenses, Business Certificate, Mayors Permit, Sanitary Permit to Operate, Barangay Clearance, Bureau of Internal Revenue, Tax Identification Number. Another one is the occupancy permit; it is about prior to leasing or purchasing a location for your business. Sign permit, that allows the establishments inspector the opportunity to review the concept drawing to make certain the sign or awning is in compliance with the city's Sign Ordinance. Sellers permit; permit that lets you collect sales tax from your customers. Employer Identification Number; a social security number for your business, it is important because it allows you to identify your business on important government forms and official documents. But because of the continuous legacy of Dimacuha, by winning the last National Elections, ABC president Vilma Abaya Dimacuha as Mayor, many of the residents from Batangas are expecting more opportunities that she will inherit. The residents are expecting her to continue what former Mayor Dimacuha had done for the last three consecutive terms during his stay as Mayor.

I.6 MARKET TRENDS

To be unique from other food cart businesses, the industry has to come up with some ways on how customers will appreciate the products and services that were going to offer. One of the trends the food carts business would have is to serve clean products within an affordable price. Nowadays, because of the sudden climate change, many of the consumers suffer from the effects of this changing environment. An aging society, global warming resulting to unexplainable changing of weather gives the demand for more products and services that offers a comfortable feeling in order to survive in the changing environment. In this case, we assure that we will serve a product that can help them escape from the climate change. We think of another ways on how ice cream can be appreciated through the process of fried ice cream. Today the contemporary food carts must maintain its appeal by giving the best service they have. The economic environment will take charge for the factors that could influence in the ability to its target market in order to serve successfully its product.

CHAPTER II MANAGEMENT PLAN

II.1 CORPORATE GOAL

Mission To serve outstanding ice cream, using only the highest quality ingredients. Vision To build a growing, highly profitable business where the highest standards of quality, value and service are expressed in a warm and comfortable feeling.

II.2 BUSINESS NAME Our food cart is named ICE CREAMAZING, its very unique name that could be easily remembered by the customers who will purchase our product, and know what kind of product we are serving. ICE CREAMAZING, because Ice Cream is our main product, on which we connect the word Amazing, because of the preparation we are going to have. It is different from the other and usual way of doing soft serve ice cream. We want to instill in our customer the amazing way of doing our ice cream. Using an advance technology applies cold frying process to produce any type of hard ice cream using quality ingredients. This commonly made by mixing some ingredients to make the mixtures of the ice cream and putting it on the machine where this machine can produce a high cold temperature to make fresh ice cream in a minute that does not require storage.

For us to be more popular about the product we are serving, we think of ways on how we can catch customers attention. We are going to prepare the fried ice cream that we have in front of the customer for them to be amazed with what they will see. This commonly made by mixing some ingredients to make the mixtures of the ice cream and putting it on the machine where this machine can produce a high cold temperature to make fresh ice cream in a minute that does not require storage. And figure out that our ice cream is the best from all those existing ice cream businesses.

II.3 ORGANIZATIONAL CHART

MAG CORPORATION (Macatangay, Apique, Guzman)

Marketing Staff

Production Staff

Accounting Staff

Cashier/ Waitstaff

II.4 INITIAL STAFFING

Initial Staffing with Monthly Salary

POSITION

EMPLOYMENT STATUS

NO. of EMPLOYEES

SALARY

MARKETING STAFF

REGULAR

P 9000.00

PRODUCTION STAFF

REGULAR

P 9000.00

ACCOUNTING STAFF

REGULAR

P 9000.00

CASHIER/WAITSTAFF

CONTRACTUAL

P 6446.00

TOTAL MONTHLY SALARY

P52 784.00

According to the Department of Labor and Employment (DOLE), there will be a one day rest within a week job. The employees are also paid on holidays, and even their 13th month pay.

The 13th-month pay in the Philippines is equivalent to 1/12 of the basic salary received by an employee within the year. If a Filipino employee worked for less than a year (regardless of the cause for the termination of his employment), the amount due to him is determined by dividing the total salary he received by the number of months he was employed. The computation of the basic salary does not include allowances and monetary benefits that are not considered or integrated as part of the employees regular compensation. The items that are taken off the list are: cash equivalent of unused vacation and sick leave credits; overtime, premium, night differential and holiday pay, and cost-of-living allowance. If, however, these benefits are, by agreement company practice or policy treated as part of the basic salary, then they shall be included in the computation of an employees 13th-month pay. Although the law requires that the extra pay be given not later than Dec. 24.

The employees will also be given free uniforms, but if due to carelessness or negligence, the employee will have to pay for their complete uniform. They are also entitled to an annual service incentive leave of 5 days with pay every year after worked for one year. If in some cases, that the female employee is having a baby, they are subject to a maternity leave and all legally married male employees are granted 7 working days paternity leave with pay for the first 4 deliveries of the legitimate spouse with whom he is living. There will also be benefits like SSS for loans, PAG-IBIG which offers its members benefits like housing program and livelihood program. PHILHEALTH program provides

benefits for hospital room and board allowance, etc. The payment for these benefits that they will going to have shall be deducted from their salary every 30 th day of the month or at the end of the month, deductions may vary from the total numbers they have worked for the whole month.

Since the business is newly established, the management team shall hire those who have work experience in the related position for us to minimize the cost of training they will have during the time they are hired. In this case they are capable of doing their specific task and solve possible problems that may occur during the operation.

And for those who are contractual workers, their salary varies from the minimum wage of Batangas Province which costs P36.625, they may work 6 hours to 8 hours. So if in some case the next on duty person is absent and they will be extend from their work, longer than 8 hours it is considered as overtime and will be given 25% additional from their normal salary wage. Since the contractual workers must work 6-8 hours, their projected salary may be equivalent to P293.00 or the minimum, having 2 rest days in one week.

TRAINING

OBJECTIVES

PARTICIPANTS

PROJECTED BUDGET

TARGET DATE

Management Training

To be more effective and have more capacity to manage

Operations Manager

P 2,500.00

September 2011

Business Etiquette Training

To improve personal professionalism

All

P 2,000.00

September 2011

Cash Handling

To avoid shortage and overage To avoid fake bills

Cashier/Wait Staff

P 2,000.00

September 2011

Presentation Skills Training

To stimulate easy interactions with the customers

Cashier/Wait staff

P 2,000.00

February 2012

Sanitation and Hygiene

To improve sanitation condition

All

P 2,000.00

February 2012

Communication and Speaking Training

To speak more powerfully and persuasively for business success

Marketing Staff

P 1,500.00

January 2012

Customer Staff Training

To impress customers and enhance image

Cashier/ Wait Staff

P 2, 000.00

January 2012

TOTAL AMOUNT

P 14, 000. 00

II.5 STAFF TRAINING EMPLOYEES TRAINING

The table above shows a certain areas of knowledge or skills that need to be improved by the staff to make their work more productive for the success of the business. These skills are needed for an overall professional development. Indicate here the objective of each skill to train about a specific topic or idea on their job. Also, the money to be used and when it will be held.

The objective of these trainings is that to be able to know what to do after the training sessions. It also helps assess the present knowledge and skill levels of the trainee and determine what additional knowledge and skills must be learned. And since the customers are expecting too much from those existing businesses, trainings are a great help in order to meet customers expectation, or in some cases, to exceed even what the customers expects. Through different trainings or seminars, the result will come up to productivity, accuracy, teamwork, efficiency and good relationship among the customers. Also trainings help the employees to face different situations in terms of conflicts in their assigned works or responsibilities.

Chapter III MARKETING PLAN III.1 Marketing Objectives Marketing objectives should lead to sales. It will be consistent and not in conflict with each other. It will be clear and measurable. ICE CREAMAZING objectives are as follows: To establish a presence as a successful food cart outlets and gain a market share in Philippines food industry. To offer ice cream at an affordable price for the customers. To expand into a number of outlets by year five, and sell the franchise to neighboring metropolitan cities, such as Sta. Rosa, Lipa, and Tanauan. To increase product awareness among the target market by 30% in one year. III.2 Target Market Target marketing is important to the success of any business. This requires identifying our core product, identifying the key users of our product, and marketing to those specific individuals who need our product in a way that

distinctly stresses our expertise. ICE CREAMAZING which serves fried ice cream intends to cater a very large group of people. Target Audiences are set to focus on different groups: Adults, teens and children. It is essential to become familiar with our target market, their habits, behaviors, likes, and dislikes. Markets differ in size, assortment, geographic scale, locality, types of communities, and in the different types of merchandise sold and because of the many variations included in a market it is essential, since we cannot accommodate everyones preferences, to know exactly who are marketing to and the specific fondness of that market. To better become acquainted with the ins and outs of our designated target market. The following group serves as target market. Age - Youngsters, single, currently enrolled in college, high school and elementary. Family unit - We will also appeal to families (young families) with children. Gender - We will target both sexes Income - We will appeal to the medium income individuals and to all in the lower medium income bracket. Higher ncome will also be considered. Consumer Market Segmentation Age Geography Sex 4-30 Batangas City Male and Female

Income

A(Higher Income) , B (Middle Income) C (Lower Income) Single, Married, Divorced, Widowed, Single Parent Elementary, Secondary, Tertiary

Civil Status

Education

III.3 Competitors Analysis

In formulating our own strategy, we must consider the strategies of our competitors. Competitor analysis has two primary activities: obtaining information about important competitors and then using that information gathered to predict competitor behavior. The goal of this competitor analysis is to understand with which competitors to compete, competitors strategies and planned actions, and how to influence competitor behavior to our own advantage. Competitor analysis is an important part of a firm's development of its strategy. Its importance lies in the understanding of competitors, their strategy, and resources and capabilities.

A competitor analysis provides a firm with the knowledge to leverage its strengths and address its weaknesses and, conversely, take advantage of weaknesses of competitors and counter their strengths. Finally, competitor

analysis also gives a firm a better understanding not only of the competitors but also their overall sector and where the emerging opportunities may be.

Title 3ms soft ice cream

Product Soft served ice cream Soft served ice cream Soft served ice cream

Strength Has a cheap price of ice cream Good location, accessible, very easy to find Has an affordable price Do have approachable employees. First one that introduce ice scramble in the

Weakness

Lowes t Price

Highest Price

Poor location Didnt use gloves in preparation Doesnt have an appealing taste Sometimes messy in preparing their product.

P 6.00

P15.00

Scoopery

P22.00

P39.00

Creamline

P10.00

P30.00

Scramble Mania

Ice Scramble

P 7.00

P17.00

Ice Breaker

Ice Scramble

market.

The employees are not approachable

P 7.00

P17.00

ICE CREAMAZING

FRIED ICE CREAM

Have a good location, has a unique product, approachable employee, affordable price

New in the industry, have to introduce our product in the market.

P20.00

P35.00

Fried Ice Cream

Fried Ice Cream

They were the first one to introduce fried ice cream in SM

Very messy, they dont use gloves sometimes. The location is not that accessible.

P25.00

P40.00

The table above shows the range of competitors that spans the market dominants like 3ms soft ice cream, Scoopery, Creamline, Scramble Mania, and Ice Breaker. In here, these competitors have the close similarities with each other. They are our indirect competitors. They serve the same products and have the same way or process in producing their products. But our direct competitor will be the newly business built which also serves Fried Ice Cream just like our main product. Among the other competitors we consider our business as very unique from them. Because of the preparation were going to do. The other competitors serve their product in a very usual way. Good thing about our

product is that it has more advantage from the other competitors by means of having it presented in a very unique way.

III.4 Market Share

The pie graph shows the percent of each business in SM City Batangas. ICE CREMAZING has a 10 % share on the market; this could be fine since the proposed business will just be starting, and it is only for the first year of operations. But through continue advertising and doing good strategies, the proposed researchers envision that the 10% share of ICE CREAMAZING will eventually increase in the following years of operation in SM Batangas City.

I.5 Positioning

A positioning strategy is so important, because theyre a tiny little business plan boiled down to one sentence. Granted, sometimes its a long sentence. But it succinctly defines the target, their pain point, the category in which the company competes, their differentiated benefits, and what the company must do to prove those differentiated benefits to the customer developing a brand positioning strategy forces the company to consider what they need to do to be successful. ICE CREAMAZING wants to be known in the market for the quality of service and the unique product that they offer. It will be a food cart type of business wherein it serves fried ice cream as their main product. ICE CREAMAZING will make sure that the product they are serving is in a good hand or in which it is safe to eat. By means of this, the consumers will be able to trust that the product they are serving is clean. Likewise, since there has been a great concern about the food safety, we ensure that the product we are serving is safe to eat and safety will be maintained through the process or way of doing the product such as using gloves and not using their bare hands in preparing the fried ice cream.

Positioning Statement: ICE CREAMAZING - Fried Ice cream . . .

FRIED WITH FUN

LOGO

The logo looks like this, the word ICE CREAMAZING looks like it is a chilling word with the background which has its rolled style. The reason why it is rolled is because of the product. The fried ice cream will be rolled once. And the emotions face at the side, because the customer will be amazed with the product so it is look like an amazed face. With the positioning statement under the fried with fun.

III.6 Place The location of ICE CREAMAZING Food Cart business is at SM City Batangas. SM City Batangas is a shopping mall owned and operated by SM Prime Holdings. It is the first SM Supermall in the Batangas Province. It is located at Brgy. Pallocan Kanluran, Batangas City. It is the busiest shopping mall in Batangas, and is very close to Holy Trinity Church. According to the traffic count of the malls guards, approximately 10,000 shoppers enter this mall on a daily basis making it an ideal location for the business.

The exact location of ICE CREAMAZING will be at the ground floor next to Cream Line Stand, and beside the escalator. It is facing to the SM Department Store, and to be easily seen, its near from Jollibee, Greenwich and Goldilocks.

III.7 Product Product is defined as a "thing produced by labor or effort" or the "result of an act or a process". Food cart businesses, offers products that are easy to serve. Ice cream is a sweet frozen dessert, made from milk fat and solids, sugar, flavoring, a stabilizer and sometimes eggs, fruits, or nuts. The mix is churned at freezing temperature to attain a light, smooth texture. Ice cream sundaes had become popular by the 1890s, and the ice cream cone was introduced in 1904. While Fried Ice Cream, is a unique third generation system of processing on the spot quality ice cream. There are some variants of Fried Ice Cream, which made by taking a scoop of ice cream frozen well below the temperature at which ice cream is generally kept, possibly coating it in raw egg, rolling it in cornflakes or cookie crumbs, and briefly deep frying it, in ICE CREAMAZING, advance technology applies cold frying process to produce any type of hard ice cream using quality ingredients. This commonly made by mixing some ingredients to make the mixtures of the ice cream and putting it on the machine where this machine can produce a high cold temperature to make fresh ice cream in a minute that does not require storage. It gives the maker the flexibility to produce on demand, a one of a kind ice cream that has a distinct taste. Then provide something to fill at the top of the ice cream and it is customers choice of toppings. Every made product has its flavor and destined toppings that depends

on customers want or need. Same on the other franchise of fried ice cream, ICE CREAMAZING is stock in using a cup to place the ice cream on its unique rolling style. Customer service is the provision of service to customers before, during and after a purchase. According to Jamier L. Scott. (2002),[1] Customer service is a series of activities designed to enhance the level of customer satisfaction that is, the feeling that a product or service has met the customer expectation." To be able to meet the customers satisfaction, it involves the commitment to what the customers need and want, and to exceed customers expectation is to be friendly every time they purchase the product.

III.8 Price Price is the quantity of payment or compensation given from one party to another in return for goods or services and for the ICE CREAMAZING, having the pricing strategy that people can afford with the use of peso value. Setting the right price for the product makes easier to compete and attract customers. Considering the price is based on the competitors pricing strategy. The price that we will charge has to be competitive but still allow us to make a reasonable profit. The pricing strategy that we used is the Cost plus Pricing. Setting the price is based by examining how much it costs to produce the product and adding a fair price for the benefits that the customer will enjoy.

III.9 Promotion Promotions Includes advertising, personal selling, public relations and sales promotion. It is concerned with any communication tool used to persuade and influence the target and potential market about the right product that will be sold in the right place at the right price. Also, Promotion is the communication link between sellers and buyers for the purpose of influencing, informing, or persuading a potential buyer's purchasing decision. It describes how to deliver Unique Selling Proposition to our prospective customers. Since ICE

CREAMAZING is new in the business industry, will make use of print media such flyers with full information about the product to reach the large number of the target market. Also we will deploy different marketing tactics to increase customer awareness of Ice Creamazing. Our most important tactic will be "wordof-mouth" and in-store marketing. This will be by far the cheapest and most effective of our marketing programs because of the high traffic in targeted shopping location. Another one will be local store marketing. These will be lowbudget plans that will provide community support and awareness of our facility. Lastly, marketing effort will be spreading leaflets and tarpaulins. Although, this will be the most costly, this tactic will be used sparingly as a supplement where necessary.

III.10 Service and Customer Relationship Service and customer relationship can better be enhanced through the value of personal touch. Make an effort to get to know our customer as a person. Building a good customer relationship is important in the success of a business. This is because humans naturally gravitate toward what they know. Behavior like this is reflected in the choices that people make whenever they are deciding what business they want to purchase their products from. If we have a good customer relationship management program it will revolve around our building a network of loyal customers. . Our efforts will be rewarded with repeat business, referrals, and satisfied loyal customers. We will do some customer touch points that we can use to strengthen our relationships and keep our customers informed and engaged:

Smile Facial Expression Eye to eye contact Tone of Voice Choice of Words

Body Language Appearance Cleanliness Attending to Customers Needs Attentiveness and Effectiveness Accessible (easy for the customers to approach us) Feedback (ask for the customers experience about our product) Customer satisfaction (not just hitting customers satisfaction but exceeding customers expectation)

In order to come up with these touch points, we will teach our employees interpersonal skills that they can use with our customers. We will make sure that we are delivering efficient and cost effective services. The better service we give to our customer, the more customers we will get and the more customers that we will also retain. Well make sure that we are certain that the way that our business handles complaints, negative comments and problems that are related to our product and services is professional because this really does say a lot about your business.

III.11 Projected Demand The proponents of the study interviewed the six competitors they have in SM City Batangas to come up with the projected demand. A B C D E F Estimated no. of cups per month G Projected Ave. no. of cups per year

FOODCARTS

Ave. no. of Cups

Historica l Market Share

Net no. Of Cups

Projecte d Ave. no. Of cups

Projecte d Market Share

3ms soft ice cream

390

15 %

2623

394

14 %

11, 820

141, 840

Scoopery

500

19 %

2623

498

17 %

14, 940

179, 280

Creamline

420

16 %

2623

419

15 %

12, 570

150, 840

Scramble Mania

400

15 %

2623

394

13 %

11, 820

141, 840

Ice Breaker

400

15 %

2623

394

13 %

11, 820

141, 840

Fried Ice Cream

540

20 %

2623

524

18 %

15, 720

188, 640

ICE CREAMAZING

292

292

10 %

8, 760

105, 120

TOTAL

2650

100 %

100 %

87, 450

1,049,400

AVERAGE Basis of Computation:

12, 493

149, 914

B Average No. of cups divided by the total no. of cups 390 2650

E Projected Ave. no. of cups Divided by the total projected no. of cups, then multiply by 100 Projected Market Share 394

2915 0.135 14 %

0.15 Multiplied by 100 Historical Market Share 100 15 %

C Total no. of cups multiplied by the estimated increase on the no. of cups Estimated no. of cups 2650

F Projected average no. of cups Multiply by 30 (1 month) 1.1 2915 Estimated no. of cups per month 394

11, 820

Multiply by the estimated market share of ICE CREAMAZING Net no. of cups for ICE CREAMAZING

0.1 292 G Projected average no. of cups 394

Estimated no. of cups Less: net no. of cups for ICE CREAMAZING Net no. of cups for the six food carts

2915

Multiply by 360 (1year) Estimated no. of cups per year

292

141, 840

2623

D Historical Market Share Multiply by net no. of cups for the six food carts Projected ave. no. of cups 15 %

2623 394

Chapter IV OPERATIONS PLAN

IV.1 Purchasing Purchasing is the formal process of buying goods and services. The Purchasing Process can vary from one organization to another.

In purchasing, the process usually starts with the requirements or the demand of goods to be purchased, whether it is for the inventory or service. The goal of ICE CREAMAZING food cart is to purchase an item and agreement with the right supplier at the right time and at the right cost. Suppliers must send a response or the Purchase Order to the proponents of the business enterprise in order to have best offer which includes, price, availability and quality of the goods or service.

Purchase Orders will be of various types: Standard - a onetime buy Planned an agreement on a specific item at an approximate date Blanket an agreement on specific terms and condition.

Purchase orders are usually accompanied by the terms and conditions, which will eventually forms a contractual agreement of the Transaction. Since the supplier will deliver the goods or products in ICE CREAMAZING food cart, there will be a professional relationship between the two. Supplier plays a big role where in they will deliver the products and the ICE CREAMAZING will then record the delivery. An invoice will be sent by the supplier together with the Purchase Order and Document which specifying that the goods are received by the ICE CREAMAZING.

ICE CREAMAZING will also be having a purchasing tasks and this includes the following: Policies these are the general rules to be followed by the employees Procedure a description of how the task must be accomplished Rules to communicate precise behavior.

IV. 2 Receiving It is a vital task that requires attention from all personnel. The fundamental task of receiving is to verify all delivered against specification and quantity; what has been delivered by the surveyor must match what has been ordered.

Standard Receiving Procedure of ICE CREAMAZING: 1. Control all incoming products from the suppliers Receive in a specific area 2. Train the receiving employees on proper handling of the products received to prevent losses and costly waste disposal 3. Inspect the products prior to acceptance

 Check for opened or damaged Check for the expiration dates or proper labeling 4. Use only the quality suppliers Quality and reliability are very important Supplier must deliver the goods according to our specifications Always check the record of our suppliers with other references. 5. Review and create a purchase agreement Specify our terms and conditions regarding in receiving the goods to be delivered. Include provisions that will allow us to inspect the goods delivered prior to acceptance. 6. Set an agreement to ensure that specified procedures are being followed. 7. Deliveries will be scheduled only during slower business hours. 8. Must follow first in first out. 9. And always keep accurate receiving records each time the products are being received from the suppliers

Good receiving procedures will prevent acceptance of goods delivered which are incorrect, improperly packaged, and reduce unnecessary waste generation and returns.

IV. 4 Storing Since the business to be operated is Food Cart, the proponents of the business just think that the storing area may be just in the proponents house. Organized storage area helps reduce losses of the products. Frequent cleaning and sanitation helps eliminate potential insects. The advantage of having the storing area at the proponents house is that it can prevent the employees to steal the product.

IV.4 Production Process Menu Planning MENU

Flavors Chocolate *Ube *Vanilla *Strawberry *Dark Chocolate *Cookies and Cream

Toppings Candy toppings *Mini Nips *Chocolate Kisses *Choco Sprinkles *Strawberry Sprinkles *Mini Mallows *Rice Crisps *White Kisses Pastry toppings *Choco Flakes *Strawberry Flakes *Choco Pops *Oreo Bits

Prices P20.00 *1 choice of any flavor *2 choices of candy toppings P25.00

*1 choice of any flavor *3 choices of candy or pastry toppings P30.00 *1 choice of any flavor *4 choices of any toppings P35.00 *1 choice of any flavor *5 choices of any toppings

RECIPE COSTING The Ice Creamazing RECIPE COST SHEET Title of recipe:Fried Ice Cream Yield/ Serving: per serving Cost per Serving: P14.3 Current Sale Price: P19.30

INGREDIENTS Water Powdered flavor Sugar Cup Spoon White kisses Mini Mallows 2 1 1 1 2 2

Unit

UOM cup T T pc pc t t

Unit of Price 45/gallon 30/kilo 57/kilo 39.60/5pcs

Cost of Ingr. Used 1.40 .90 .85 7.92

16.50/50pcs .33 170/kilo 120/kilo 1.7 1.2

TOTAL

P14.3

The Ice Creamazing RECIPE COST SHEET Title of recipe:Fried Ice Cream Yield/ Serving: per serving Cost per Serving: P18.08 Current Sale Price: P24.40

INGREDIENTS

Unit

UOM

Unit of Price

Cost of Ingr.

Used Water Powdered flavor Sugar Cup Spoon Nips Oreo Choco pops 2 1 1 1 1 1 1 cup T T pc pc t t t 45/gallon 30/kilo 57/kilo 39.60/5pcs 1.40 .90 .85 7.92

16.50/50pcs .33 11.14/50g 63/250g 25/50g 1.67 1.26 3.75

TOTAL The Ice Creamazing RECIPE COST SHEET Title of recipe:Fried Ice Cream Yield/ Serving: per serving

P18.08

Cost per Serving: P20.94 Current Sale Price: P29.95

INGREDIENTS Water Powdered flavor Sugar Cup Spoon Choco sprinkles White kisses Oreo 2 1 1 1

Unit

UOM cup T T pc pc t t t

Unit of Price 45/gallon 30/kilo 57/kilo 39.60/5pcs 16.50/50pc 210/kilo 170/kilo 63/250g

Cost of Ingr. Used 1.40 .90 .85 7.92 .33 1.57 1.7 2.52

1 2 2

Choco pops

25/50g

TOTAL The Ice Creamazing RECIPE COST SHEET Title of recipe:Fried Ice Cream Yield/ Serving: per serving

P22.19

Cost per Serving: P25.62 Current Sale Price: P34.58

INGREDIENTS Water Powdered flavor Sugar Cup Spoon Choco sprinkles White kisses Mallows Nips Choco pops 2 1 1 1

Unit

UOM cup T T pc pc t t t t t

Unit of Price 45/gallon 30/kilo 57/kilo 39.60/5pcs 16.50/50pcs 210/kilo 170/kilo 120/kilo 11.14/50g 25/50g

Cost of Ingr. Used 1.40 .90 .85 7.92 .33 1.57 2.12 1.5 2.78 6.25

1 2 2 2 2

TOTAL

P25.62

Equipment and Tools

Item

Quantity

Specification

Amount

Blender- used for mixing the powder with water to produce the liquid flavor of ice cream

P 5, 040.00

Scraper used for scraping the platform surface of the fried ice cream machine until the liquid form becomes ice cream.

P 548.00

1 set

Measuring Cups, Measuring Spoonsused for measuring the amount of ingredients to be used.

P 420.00

6 Tupperware-

P 3, 432.00

powder containers

1 Fried Ice Cream Machine an ice pan use for stirring the liquid until it becomes ice cream/ Use for preparing the ice cream ingredients.

P 80, 000.00

Mini Refrigeratorcooling apparatus, storage for the blended products of ice creamazing.

P 8, 358.00

Mini Containers containers to be used for the blended

products.

P 903.00

POS (Point of Sales) location where transaction occurs.

P 35, 000.00

Containers Containers used for stock of powders

P 148.50

Uniform It is important in ones business to have uniforms for their employees. To be distinguished by the customers, the proponents of the business thought of an idea having a uniform with the logo that was printed on front of the polo shirt, and the positioning statement at the back, partner with a sun visor cap for the neatness of the employees. Ice Creamazings uniform will be looked like this.

Ice Creamazing will provide uniforms for the employees, which includes two sets of polo shirts, sun visor, hairnet and apron without cost; however, they should provide their own slacks, black closed shoes with black socks. If due to carelessness or negligence, the employee had lose his/her uniform or could be no longer presentable than the normal wear such as drying directly under the sun, they will have to pay for the replacement. So it is a must, which the employee should take good care of his/her own uniform. Employees that are presentable and having complete uniforms are allowed to go on duty.

Inventory Management

Inventory control procedures are important for reducing management costs and expired materials. Proper management of inventory keeps the right amount of storage and prevents the over purchase of items, such as quality deterioration, theft and losses. Each inventory should mark with the date and its unit price when it is received. Pricing each item individually or by the pack, package, or case will alert every employee to the value of the items. Inventory Control Procedures of ICE CREAMAZING: 1. Set inventory limits Set only according to the response capacity 2. Minimize inventory Buy and stock only what is needed We will consider large purchases especially if it can get discounts. Deliver in time in order to meet what is only needed (just in time system) 3. Track Products/ Goods Use the oldest stock first (first in, first out) Inspect the label, and date of the goods as they are received Keep records of dates of receipt and usage to help reduce overstock We will consider computerizing of the tracking system.

Inventory control affects the entire operation. Inventories may be taken at the end of the function, end of a weekly accounting period or at the end of the month. Appropriate inventory control alerts the Ice Creamazing to shortages or other discrepancies that may occur in the business.

Design and Layout

CHAPTER V FINANCIAL ANALYSIS The financial plan was made using the data gathered in the previous chapters. It is also based on the current status of the Philippine Food Cart Industry which has reached the PhP1 billion sales mark every year. The succeeding data will be the basis of the financial position of the business for the next year. V.1 Financial Assumptions The financial assumptions of the business is based on the following: 1.1 Sales The projected sale for the first year is PhP2, 890, 800.00. This is based on the projected average number of cups on demand which is 105, 120 cups. These are multiplied by the average amount per cups of the four varieties in the menu. 1.2 Rent Expense The total rent expense is PhP180, 000.00 for the whole year based on a PhP15, 000.00 rental fee per month. The contract will include water and electricity expense. 1.3 Compensation and Benefits The total compensation and benefit expense for all employees is PhP680, 536.53. for the whole year based on the computed PhP52, 784.00 salary of all employees per month and the 13th month pay benefit amounting to PhP47, 128.53. 00. 1.4 Training and Development

The training and development expense for the employees is PhP14, 000.00 covering the training needed for an efficient and effective customerservice. 1.5 Office Supplies Expense The office supplies expense per month is roughly estimated at PhP2, 000.00 for an annual total of PhP24, 000.00. The office supplies include the Daily Time Record Form and other related office supplies needed for the operation of the business. 1.6 Machineries and Equipment The total machineries and equipment cost is PhP133, 849.50 including all equipments necessary for the operation of the business. 1.7 Advertising and Promotion Expense Advertising and promotion expense amounts to PhP24, 000.00 which includes flyers, tarpaulins and seasonal radio commercials in leading local radio stations. 1.8 Tax Based on the estimated sales of the business, the tax will be set at PhP50, 000 plus 30% on the excess over PhP250, 000.00. The basis of the tax rate is the existing tax laws implemented by the Bureau of Internal Revenue.

V.2 Project Cost The project cost will include miscellaneous expense, operating expense and the capital expenditures which include all assets. Fixed Investment Machineries and Equipment Ice Cream Cart TOTAL Pre-Operating Expense Permits and Licenses Advertising Cost (per month) Training and Development TOTAL Operating Expense Rent Expense Salaries and Wages Employee Benefits Raw Materials (based on 4 menus and projected Demand for 1 month) TOTAL TOTAL PROJECT COST PhP 15, 000.00 PhP 52, 784.00 PhP 47, 128.53 PhP172, 878.68 PhP287, 791.21 PhP 3, 000.00 PhP 2, 000.00 PhP 14, 000.00 PhP 19, 000.00 PhP 53, 849.50 PhP 80, 000.00 PHP133, 849.50

PhP440, 640.71

V.3 Projected Income Statement This presents the projected income statement for the next five years. The monthly projected demand is computed for 12 months as the basis for yearly projected income less the total expenses.

Sales

2011 2, 884, 284.40

2012

2013

2014

2015

Less Expense: Raw Materials Salary &Wages Benefts Rent Advertising

2, 074,543.20

V.4 Projected Balance Sheet V.5 Financial Analysis

CHAPTER VI CONCLUSIONS AND RECOMMENDATIONS