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Business

Overview
A. Description of the Business
This business plan provides information about our product – layered drinks -
that is according to the availability of the resources in the market which is in order to
organize the particular business venture. It also shows our acquired knowledge
about economics and entrepreneurship, which helps us make our product compete
with the existing competitors. There would be no heavy equipment to be used. The
business is dedicated to serve the people well and it will progress accordingly to the
tastes and preferences of the consumers. The owners of the business are willing to
take risks if ever there would be malfunctions to the production. For every unit, we
seek to provide wellness for the satisfaction of each and everyone’s needs and
wants.

Please refer to the attached appendix for the projected goals and means
during the first 22 selling days.

B. Location of the Business


L.A.C.A.K.E. Company is determined to become a daily necessity for soda
and juice addicts. The location of the business is at Xavier University which is a
place where students like to stay and are happy to return to. It is also a comfortable
place to meet their friends. With the great service, L.A.C.A.K.E. Company will
capitalize to the Xavier University campus to build a core group of repeat customers.
L.A.C.A.K.E. Company will offer its customers the best prepared Layered Juice
Drinks in the area that will be complimented with Junk foods that patrons will enjoy of
drinking our Layered Juice Drinks.

C. Executive Summary of the Business


I. Vision, Mission, Goals and Objectives

VISION:

Our business’s vision is to be the most well-known beverage selling business


in Xavier University by the time ABM week ends.

MISSION:

A business enterprise that provided affordable and colourful drinks that


satisfies the needs of the people in Xavier University

GOALS:

L.A.C.A.K.E. Company’s goals are to be a part of the people’s lifestyle by


bringing them colour in their everyday lives. Also, to let people experience a different
twist to their day by quenching their thirsts with Freezies.

OBJECTIVES:

Our objective is to provide refreshing drinks to the consumers during our two-
week period of operation; and also, to apply the knowledge and skills we have
learned in handling our business.

D. Business Model
Key Partners Key Activities Value Customer Customer
Proposition Relationships Segment

*Selling
*Marketing
*Making *Personal
Combinations *A fun, exciting *People within
and new way to the school
*Students
quench your community;
*Teachers,
thirst through students,
Faculty and
adding cool teachers,
Staff of XU
colors to you faculty and
Key Resources drinks with a Channels staff,
very affordable administrators,
*Ingredients price that suits and visitors
*Posters and
*Manpower in with your
flyers
daily budget
*Tools/Equipme *Salespersons
nt
*Booth

Cost structure Revenue streams


*Ingredients, materials, tools, booth, *Beverage sales, tips
commission

E. Business and Product Position


L.A.C.A.K.E Company offers an eye – catching and mouth – watering
innovated drink to its consumers. It aims to please the demands of the market or
specifically, the people within Xavier University. With its attractive and colorful
presentation, the consumers will surely get drawn to it easily; and let us not forget
about the unique, tangy taste that will make the customers keep coming back for
more. As our saying goes, ‘Color Your Thirst!’

F. Wealth Improvement Approaches


L.A.C.A.K.E Company’s wealth improvement approach is providing quality
goods. It offers satisfying flavors based on the customers’ preferences and additional
snacks to end the hunger our customers feel while drinking.
The income of the business will depend to the initial capital of the investors
propagating the profound skills in handling enterprises. If the business will
unconsciously go down, the entrepreneurs must find a way to make the business
stable. If the investors are willing to invest more to the business then there would be
high chances of expanding the business branching to other places. In other words,
the wealth being preserved will increase to a positive amount if the product will
develop better.

G. Parties Supporting the Business


For the parties that are supporting the L.A.C.A.K.E. Company, we have the
consumers, suppliers, and staff.
Consumers support the business by purchasing the business’s goods.
Through this, they are offering money in exchange. Suppliers provide us with the
materials needed to make our products. Through this, they are giving us support.
And lastly, we have the employees and staffs that are a key variable in making the
business thrive. Without them, the business would be nothing as with no one to
operate it and groom it to be the best it can be.

Goals and Objectives of the Strategists


As strategists, we will develop and improve the business
strategies being used by the business or the product being sold to
attract more customers. Analyze the problems and create
solutions as to where the business lack to earn more profit and
expenses and continue the business operations

Goals

 Customer satisfaction in Freezies products


 To provide better customer service
 Achieve outstanding customer service
 Ready for franchise.
 Satisfy the wants and needs of our costumers

Objectives

 Introduce freezies into a new market.


 To set up a favorable brand reputation within the community
 To identify the competitors, costumers, and demands on the
market
 Own stall or store in malls and in different places that our target
consumers can buy directly
 To have an overall overview of the market

Situation Analysis
This section will show the business’ present Situation Analysis of the
analysts using the Environmental Scanning Strategies - SWOT. SWOT
analysis is a tool used by business to identify their Strengths, Weaknesses,
Opportunities and Threat. The strengths and weaknesses of a business are
considered to be in the microenvironment - which means that the forces are
internal to the company or those that are relevant to its operations. It is
composed of the company itself, its suppliers, market intermediaries,
customers, competition and its various publics.

AN ANALYSIS OF THE

MARKETING MICROENVIRONMENT

The Company
Strengths Weaknesses
• Loyal and • Insufficient funding
hardworking • Scarce in human
employees resources
• Democratic • Lacking of research
leadership style

The company showed that its strengths is about its employees that shows
loyalty and good management. This shows that the managers of the
business are democratic in handling their employees and are effective in
handling the other aspects of the company. While on the other hand, the
weaknesses showed how the company is having a scarcity in its funding,
human resources and research.
Suppliers
Strengths Weaknesses
• offers low price of • Uncertainty for the
goods ingredients' supplies
• accessible area

The suppliers’ strengths will fall into the availability of the supplies at a
low cost which will then benefit the company through saving and also by
being able to purchase more supplies. Another strength of this supplier is its
accessible area where the company can easily go to or the company can
easily look for it because of its address is within the city only. While the
weakness of the suppliers is it’s uncertainty as to when will the supplies
last? There is a possibility that the supplier may have run out of stock and
will definitely affect the company’s operations. If this happens, the
operations of the business will have to close if there is really a scarcity in
supplies and a possibility of loss in the business because they will have to
skip a day of operations if they haven’t found other market to purchase a
supply. This is also a risk if the company will have to find another supplier
because the present supplier might have to question the loyalty of the
company and will definitely affect the relationship of the two.
Customers
Strengths Weaknesses
• the company offers • switching of
products that attracts prefences
and mantains loyal • different profiles of a
customers customers

The company’s customer showed strengths in the field where the


company offers products which attracts and maintains loyal customers.
While the weakness of these customers are their switching preferences
which comes from their undying wants and needs and also their different
profiles might affect the company’s operations for it may cause a downhill in
the sales forecast if their profiles doesn’t meet with the products that the
company offers.

In sum, the business’ strengths and weaknesses shows that the


company is still in need of promotion and intensive management in the
finance, production and promotion areas. There are strengths of the
business that can still be improved and weaknesses that needed mitigation
thus, there are also weakness of the business, based on the analysis, that
can be improved and if so, will be beneficial to the business.

In this section, it will show the business’ threats and opportunities


based on the the marketing macroenvironment of the business. The
macroenvironment refers to the economic, politicolegal, sociocultural,
demographic, technological, and natural environments. Though there are
many, only the factors that are directly relevant are considered.
An Analysis of the

Marketing Macroenvironment

Economic
Macroenvironment
Threats opportunities
Inflation rate • Consumer price index
Consumer spending
shifts

Based on the table above, the threats and opportunities of the company
in terms of its economic macroenvironment showed that the inflation rates,
consumer spending shifts and consumer price index may highly affect the
company’s operations. Example, inflation rates may affect the prices of the
supplies needed by the operation which may then lead to a higher cost in
production that will tend to adjust the business’ price or the business’
servings of the products. While the opportunities of the business showed
that the company may have opportunities when the consumer price index
moves. For example, if the consumer’s price index is becoming lower, the
company will innovate product that serves a combo meal for a very
affordable price, or the company may have to think of a promo where a
customer can purchase two products at a low price. This will all fall in the
marketing strategies of the business to attract customers even if they have a
higher price index.
Demographic
Macroenvironment
Threats opportunities
• Population rate
• Age
• Gender

Based the table shown above, the company’s demographic


macroenvironment showed that all of its component takes part in the
formation of opportunities in the business and company. The population
rate will have a big impact in the generation of profit for the company
because it signifies that there will be many possible customers that will
purchase the product and become one of the loyal customers. The age of
the population can also be an opportunity for the company will have to
innovate products that will suit the age group’s needs and wants. This
can also be connected to the gender of the population where the
company will have to align the products in order to satisfy the particular
age or gender’s wants and needs.

In sum, the threats and opportunities of the company are quite


controllable for they can be mitigated, eliminated, improved and
innovated. They can be eliminated and mitigated through the company’s
innovation and improvement of their product and management. To
eliminate and mitigate the threats that are identified, the company will
have to think of alternatives. This is where the contingency plan comes
in. The contingency plan will contain the alternative plans of the
business. For example, if there’s an inflation rate, the business will have
to think of other resources for its product or that it will have to develop a
plan where they will have more inventories of their supplies.

Proposed Marketing Objectives


 Increase the number of loyal customers through giving loyalty/membership
cards, discounts and earning points on purchases.
 Increase the number of stalls and stores in the market
 Attend and participate in food caravans and sponsor events
 To identify the company's position in the market through perceptual
mapping
 To build partnership with other companies to be the distributor of Freezies'
products, such as fastfood chains that needs well-innovated beverages
 Increase the number of loyal customers through attracting and maintaining
the most valuable customers by giving incentives by way of raffles.
 Continuously innovate Freezies' products
 Provides an excellent customer service through implementing a training
program that would help the whole business organization to be competitive
in any aspects
 Favorable brand reputation within the community
 To be recognize as the bestselling layered juice in the Philippines with
different add ons and side food.

Finances and Sales Objectives:

 Identify and adjust the expenses of the business

 Increase the number sales particularly to the branch or store that has high
demands of Freezies products that may also help to gain more profit

 Determine the target volume and the breakeven point of the business to help
identify the sales quota

 Increase the business' capital to make sure that expenses and financial
needs will be covered
Realigned/Revised Market Segmentation
Marketing Segmentation

Demographic

Behavioral
Market Geographic
Segmentation

Pyschological

Based on the evaluation on the SWOT of Freezies, it is the focal


issue and concern of the analysts to enhance the possible
customers of the company in order to reach their goals and
objectives. Market segmentation is the part of the marketing
process where the company will have to choose a kind of
segmentation. It may either be in a demographic segmentation -
where it refers to the general characteristics of the population.
Geographic Segmentation pertains to where the population is
located. Pyschographic Segmentation are the variables that
represent the psychological profile of consumers. Behaviographic
is the segmentation variable most indicative of purchase behavior
(So & Torres, 2016).

Demographic Psychosocial Higher profit and


Segementation Segmentation attract and retain
loyal customers
•Demographic is •Psychosocial •This new
all about the will be focusing market
general on a wider are segmentation
charactersitics of customers will then result
of the buyers to higher
generation of
profit and
attract and
retain loyal
customers .

The new market segmentation is shown in the table above.


Psychographic segmentation represents the psychological profile
of consumers. This new proposed market segmentation would
allow the company to generate more profit and gain loyal
customers. Though it is difficult to to segment this profiles from
the population because there are no government agency that
undertakes this task, it is still considered to be the most effective
segmentation variables in predicting the customers buying
behavior. So even if the company will not have exact number of
customers who belong to this segment, it still covers wide are of
segmentation. The sub-variable of this kind of segmentation is
quite universal that’s why it is effective. Examples of the sub-
variables present in this segmentation:

 Lifestyle
 Personality

 Social Class

 User Status

 Usage Rate

 Loyalty Status

 Benefits Sought

This sub-variables will then help in the formulation of the new


product positioning of the business and also it will help in the
product improvement and innovation. Through this new
segmentation, the company will have a wider view of its
customers preferences and personalities.

Market Targeting
After the formulation of the new market segmentation, the
next step to do is to identify the new market targeting of the
business. In Psychographic segmentation, the sub-variables
doesn’t have available database in the public databases.
Therefore, the company will have a need to conduct a market
research in order to fully acquire the information needed and to
fill the sub-variables that needed focusing in the business
operations. For example, after the company conducted a market
research and have identified the potential sub-variables that
would take place in the formulation of target market, the
company will then gather all the information and come up with a
percentage processing these psychographic characteristics of the
population. After identifying the psychographic characteristics,
the company will have to determine if the market is a focused
market or not. A market which contains many sub-variables are
considered to be a focused market. A focused market is more
likely to have less target market because it would be understood
as “the product is exclusively made” for a certain group of
individuals. On the other hand, the non target market will have a
higher number of target market because this type of market
produces goods and services that is universal or in suitable for
all.

After conducting the market research, the sub - variables are


identified,

Psychographic Sub - Variables

EMPLOYEES
STUDENTS
40%
45%

ADULTS
15%

STUDENTS ADULTS EMPLOYEES

The graph shows the percentage of the pyschographic


characteristics of the target market. This type of market is
considered to be a non focused target market for it is only
composed of three sub-variables. Regardless of their demographic
profile such as age and gender, they are all considered to be the
target market. The total population of Cagayan De Oro city is
602,088 and therefore 45% of the population are the students
(ages 6 – 22), 40% are the employees (ages 23 – 50) and 15% are
the adults (50 and above). And this is what the final target
market is comprised of.

Positioning Strategies
This area will discuss about the realigned positioning
strategies of the company. The conceptual map below is the guide
as to what the positioning strategy of the business is.

Significa- Conside- Choosing Time


nce rations what type
Solution
Frame
1.1

1.1 Significance

Layered juice drinks is one of the products produced by


L.A.C.A.K.E COMPANY the Freezies. It seeks to provide
wellness for the satisfaction of each and everyone’s needs and
wants. The company delivers low-priced products but of high-
quality beverages in comparison to other high paid brands.

1.2 Considerations
Freezies is a well innovated beverage that we can see in the
market, this is a layered juice drink and comes in different
flavors. There are already existing beverage companies in the
market but Freezies is a unique one, it is like having a juice drink
and a soda in just one cup. This is what makes Freezies standout
from other beverages in the market.

1.3 Choosing what type

It is a functional position in the eyes of the customers because


it seeks to provide satisfaction to the needs and wants of the
consumers. Especially that beverage is one of the most
importance component or part of a consumer’s life.

1.4 Solution

Consumers, when going out to the mall always look for


something to drink. And so, the Freezies is one way to quench
the thirst of these consumers. It is not only to quench but also
enables the consumers to have a fun way of drinking their
beverage with the colourful mix of flavors that the Freezies’ main
attraction of different juice and soda combinations.

1.5 Time Frame

As the consumer preferences changes from time to time, the


Freezies should keep up with these changes. Also, the
competitors of the same market might affect the company’s
selling performance that is why it is important for the company to
think of innovations from time to time and satisfy the unending
needs of the target consumers.

This is the market position of the business

High Price
High Quality
Low Quality

Low Price

Freezies

Other Company

Other Company