Dr. Yanga’s College Inc.

Wakas, Bocaue Bulacan

College of Accountancy

Principles Of Marketing
By:
Jesika Mae M. Tendero Christine Joy D.G. Custodio Liza T. Salamat

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Buko Sarap discovered a system that extracts buko juice in a systematic way wherein the buko is extracted and chilled in a hygienic manner keeping its freshness and natural elements. The main concern of the business is the health of its customers and thereby it strives to serve hygienic and healthy food along with taste and quality. Buko Sarap also introducing our freshly blended Buko Shake a new choice to those People who have a healthy life by offering 100% pure and natural buko meat. schools. . This system also favors a practical way of dealing with a product that was formerly available to consumers only in a marginal way. Buko Sarap will certainly address the needs of people who are health conscious. It guarantees quality of a 100% natural juice. We solve the problem of answering to the demand of Buko Juice in a hygienically and modern way. on the other hand the fact of extracting the juice in right moment it guarantees the quality of our products through a new technology that also allows the conquest and settlement of large sections in the market such as: shopping center. chilling the buko juices hygienically and safely. supermarkets. The efforts of the Buko Sarap are focused on bringing the most distinctive and innovative products to the market in Philippines.I. Company Profile Mission The Buko Sarap aims at satisfying the tastes and needs of its consumers in the Filipino society. which consist in chilling the juice soon after it was extracted without needing to add ice or cold water. Pioneering is the right word for this system which consists in extracting. Executive Summary Buko Sarap is a food cart started by enterprising friends namely Christine. keeping its natural properties. metro stations and so on. "ISANG BUKO KA LANG" that is BUKO SARAP! II. Liza and Jesika. Because of the countless benefits of buko.

The Buko Sarap aims to be a leader in the area of ethics and values in the continuously growing food industry in the national and international markets.  Fruitas In 2002. The drink’s uniqueness and the variety of flavors it offers broaden its appeal to the customers and keep them interested.Vision The motto of the Buko Sarap is “WHAT YOU SEES IS WHAT YOU DRINK”. The vision is to attain the number one position in providing quality food with international standards. In our location. when Lester Yu put up Lush Corporation a company that serves fresh fruit juices and other healthy refreshments he knew he would someday go beyond servings drinks.  Zagu Zagu introduces the “Pearl Drink” to the Philippine market. keeping customers coming back for more. Buko Express starter as an offshoot of Sonia Buko and Native Kakanin Express chain of food carts that started in 2005 by an enterprising couple. Zagu. . there are Fruitas.  Buko Express Buko Express is one of the significantly emerging food cart concepts in the market today. Fruitas is locally owned franchise who sells Fresh fruits shakes. Fruitas had expanded its operation nationwide. Taste and flavor is the essential component. Buko Express. taste and freshness. III. Current Marketing Situation Competitive Profile Matrix Our main competitors in this segment are any food outlets within the 300 meter radius along the Mall.

Porter’s Five Forces Model HIGH LOW LOW LOW HIGH .

Competitive Rivalry The rivalry among competing firms is LOW because competitors are inconsistent in identifying our strategy on how to keep the buko in its natural properties which we called pioneering. Also. . Buyer Power The bargaining power is LOW because even though customer switching costs are nearly zero. entrepreneurs are aiming for product innovation that mainly draws more customers. similar products.Threat of New Entry The threat of new entrants is HIGH because the product in prone on imitation. our pricing is in consideration. Threat of Substitution With so many firms in the quick service. Also. We can switch suppliers easily and tend to make up a large portion of the supplier’s revenue. nowadays. and healthier options. low switching costs. the Buko Express does not worry about loyalty because most Filipinos loves the natural taste of buko especially those who are health conscious. the threat of substitutes is HIGH. Supplier Power The bargaining power of suppliers is LOW because there are thousands of suppliers of buko to choose from and select theirs through a competitive bid process.

 Marketing Mix Analysis Product and Price .IV.

 Place (Target place if we will ready to upgrade our business) 5 years after .

Trained people who can serve their customer in an excellent manner. respectful. They are trustworthy. friendly. They are courteous. and considerate with credibility. and also the place where our business is located. . Promotion Social Media.  Physical Evidences The outside of the package will attract a first-time buyer. the quality of food will bring buyers back and purchase more. Samples and coupons. Responsiveness: They respond quickly to customer requests and problems. creative and attractive packages  People Competence: They possess the required skills and knowledge. reliable and perform the service consistently and accurately.

They give rewards and offer them discounts to increase their loyalty. V. Comparative SWOT Analysis SWOT BUKO SARAP  Brand Strengths And Competitors  Leading brand  Consistent growth  Distribution channels smoothie Uniqueness STRENGTHS  Product That Tend To Make Consumers Lifestyle Healthy  Strong Existing Distribution Channel  Lack Of Product Awareness  Availability Of Coconut Juice  Introduction Of Buko Sarap OPPORTUNITY  Brand Is Attractive To  Low customer base WEAKNESSES  Increase market share  Emerging markets  Increase product range Consumers THREATS  Growing Number Of Competitors  Downward Price Pressure  Large Number Competitor Of Indirect  Changing customer tastes  Brand susceptibility . Personalization Buko Sarap focuses on “repeat customer.

In the coconut juice. To survive in the industry. Opportunities  INTRODUCTION OF BUKO SARAP – The Company added some innovations and twist that we want to share or introduce to the target market. Threats  Growing Number of Competitors . So it is the weakness of our product to commercialize. So people can collect juice easily. It is easy to collect coconut and its juice.A s t h e r e i s a g r o w t h v i s i b l e i n t h e b e v e r a g e industry. . So the profit margin is very low in here. Lots of coconut sellers are available all around.  AVAILABILITY OF COCONUT JUICE – Philippines climate is suitable for the coconut juice.  STRONG EXISTING DISTRIBUTION CHANNEL – This kind of product usually distributed through stall or carts. Buko Sarap has to face the threats created by these new entrants.  Large number of indirect Competitor . many multinational and national companies are entering in the market to serve the customers.BUKO SARAP SWOT Strengths  BRAND STRENGTHS AND UNIQUENESS – The Company’s brand name is original and attractive to the customers. it may fail to create the proper awareness towards the target customers.  Downward Price Pressure Increased competition and market-share strategies are perusing beverage companies to decrease their prices.  BRAND IS ATTRACTIVE TO CONSUMERS – The product’s unique name seems to be attractive to the consumers.  PRODUCT THAT TEND TO MAKE CONSUMERS LIFESTYLE HEALTHY – The product contains nutritional benefits to the customers. there are lots of indirect competitor. Weaknesses  LACK OF PRODUCT AWARENESS – Though the product is new. So these coconut sellers are the main threats of our product.

Weaknesses  Low customer base Opportunity  Increase market share . . strong growth of the company each year.e. To maintain a positive. Objectives       Our objective is fully professionalized and we have the target to provide service in a familiar atmosphere and with greater warmth. To become the top market leader in that particular product and segment. To create a strong product awareness.Competitors SWOT Strengths  Leading smoothie brand –It has established itself as a premium brand by charging premium prices above its other similar specific competitors based on its unique selling point. To achieve an increasing number of loyal consumers.  Emerging markets – Expansion.  Increase product range – i.e.  Consistent growth – “Philippines fastest growing fruit & shakes smoothies business”  Distribution channels – They are currently stocked in over hundred retail outlets including larger supermarket chains. vegetable. product range/variety becoming repetitive. delicious. Threats  Changing customer tastes i. dairy and whole grain products. appetizing and healthy buko juice while maintaining the commitment to our consumers.The market operates in is still growing as more and more consumers are becoming cautious of the effects of processed goods. To provide fun.  Brand susceptibility – As the company grows the brand’s values are subject to greater scrutiny VI. This is a clear opportunity for them to cease more of the market.

Delivery Food for delivery may be similar to take-out (prepared to order) or it may be prepared earlier and stocked. Systems & Controls A big emphasis is being placed on extensive research into the quality and integrity of our products. Management Plan . Food Production Most food will be prepared on the premises. The licenses and codes' issues are all in order. Hours of Operation Buko Sarap 7 days a week. service will begin at 11:00 AM and end at 11:00 PM. VIII. They will receive extensive information from the chef and be kept informed of the latest information on healthy eating. The kitchen will be designed for high standards of sanitary efficiency and cleaned daily. They will constantly be tested for our own high standards of freshness and purity. Employee Training & Education Employees will be trained not only in their specific operational duties but in the philosophy and applications of our concept.VII. Food will be made mostly to order and stored in large coolers in the basement. Food costs and inventory control will be handled by our computer system and checked daily by management. Operating Plan Facilities & Offices The cart will be at a mall. New equipment will be purchased and installed by the general contractor.

Year 1 ₱20. established sound vendor and customer relationships. Personnel Plan The personnel plan is included in the table. In addition to the owner. there will be one part-time (30 hours/week).000 5 ₱31. Inevitably.000 ₱11. Owners are graduated from DYCI batch 2014 with a bachelor's degree on Accountancy and Board passers of batch 2015. I have confidence my philosophy will not only attract smart and loyal employees. Additionally. guide them throughout the process (utilizing Management by Objectives) and help them make decisions based on the company philosophy. but also develop strong mutual respect.000 x 12 months = ₱ 372. and strong work ethic. as they will feel that their ideas are valued and that they are respected. employees will receive special store benefits including:  30% Store Discount  Special monthly bonuses as sales goals are met  Paid Holidays  Paid Time Off (PTO) based on # of hours worked Our philosophy is to empower our staff to do the best they can and give them the freedom to do so. I will lead by delegation but I won't let "hang themselves”.Jesika Mae Tendero. they don't learn. I believe in recognizing good work and letting my staff know that I value and appreciate them when a job is well done. We will provide appropriate objectives. below. they will make mistakes and if they don't make mistakes. Liza Salamat | Owner Owners is extremely dedicated and motivated to creating a thriving healthy drink and feels confident in succeeding based on her well-rounded experience. Employees of Buko Sarap will be paid competitively and will receive in-depth store training. 000 .000 Owners Personnel Total People Total Payroll per month Total Payroll per year : ₱ 31. Christine Joy Custodio.

000 per year per cart.000 ₱ 35. who each will contribute ₱35.IX. Cost of Goods Sold -.000 ₱ 105. Start-up Funding Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required Assets Cash Requirements from Start-up Additional Cash Raised Total Assets Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities Capital Planned Investment Jesika Mae Tendero Christine Joy Custodio Liza Salamat Additional Investment Requirement Total Capital Total Capital and Liabilities ₱ 40.000 ₱ 105. and provide the business with a cash cushion to use for expansion over the first three years.The cost of goods sold was determined by taking actual Profit and Loss statements from various food business concepts and then using our pricing structure and guest counts to arrive at costs. We did not factor in any sales growth for subsequent years.000 ₱0 ₱0 ₱0 ₱0 ₱0 ₱ 35. the company is owned by the original 3 founders. We have projected sales on the low side using 100. Financial Plan Start-up Funding Currently. 2020.000 ₱ 65.000 ₱0 ₱ 105.000 Sales – Buko Sarap is basing its projected sales on the assumption that the first unit will open on July 1.000 ₱ 50.000 ₱ 105.000 ₱ 55.000 ₱ 35. .000. This will more than cover start-up requirements.

most of which are shown in the following table as annual assumptions.00% 10. allowing for accurate off-premises control. that there are no unforeseen changes in consumers' tastes or interests to make our concept less competitive. tax rates.We will use these pesos for accounting and payroll services of our firm. All systems will be computer-based. if necessary.00% 0 Year 3 3 10.42% 0 Key Financial Indicators Food costs must be kept at.00% 25.Figures are based upon the use of five managers per unit at our maximum bonus and salary levels. If we use four managers per restaurant.00% 10. .The various fixed and variable expenses were determined by taking actual numbers from several different restaurant concepts. Advertising -.00% 25. Some of the more important underlying assumptions are:  We assume a strong economy. and personnel burden are based on conservative assumptions. 17%. this will lower our payroll.  We assume. or below. Interest rates. or below. Unit level employee costs must be kept at.00% 10. As we grow in size. of course. Marketing Fees -. this cost burden will shrink per store due to efficiencies in volume. Important Assumptions The financial plan depends on important assumptions.These funds will be used.42% 0 Year 2 2 10. Fixed and Variable Expenses -. If we are running significantly ahead of our sales projections.These funds will be used for the production of various marketing materials. without a major recession. 35%. General Assumptions Plan Month Current Interest Rate Long-term Interest Rate Tax Rate Other Year 1 1 10. then these funds may not be necessary. Management Fees -.Management Payroll -. to maintain our sales at projected levels. The monthly assumptions are included in the appendix.00% 25.

7.Management salaries. 2.Total fixed costs 1. 5.00% .Paper and cleaning. 35. 5.Break-even Analysis VARIABLE COSTS 1.Employee payroll.Management fees.03% . 8. 10.000 . 00.Depreciation. ₱ 112. 6.000 . ANNUAL FIXED COSTS ₱ 30. ₱ 20. 00. advertising. 4.Other expenses minus marketing fees. 3.100 .50% . 2. 3. 3.000 .Management bonus.Total variable costs.Advertising. ₱ 15.25% . 63.200 .300 .Management payroll taxes and benefits.00% .11% . 9. 2.Employee payroll taxes and benefits.Credit card charges.Controllable expenses minus credit card charges and paper/cleaning. 6.00% . ₱ 10. 2. 17. .Marketing fees.00% . ₱ 37. 2.00% . 1. and management fees.Cost of goods sold. 4.33% .

500 ₱60.000 ₱0 ₱33.500 .000 Month 2 ₱75.000 ₱0 ₱33.000 ₱31.000 ₱0 ₱45.000 ₱3.Pro Forma Profit and Loss Month 1 Sales Direct Cost of Sales Other Costs of Sales Total Cost of Sales Expenses Payroll Marketing/Promotion Depreciation Total Operating Expenses Net Profit ₱31.000 ₱2.000 ₱0 ₱33.000 ₱0 ₱20.000) ₱31.000 ₱2.000 ₱2.000 ₱40.500 ₱55.000 ₱45.000 ₱0 ₱30.000 ₱12.000 Month3 ₱100.000 (₱11.