Republic of the Philippines

NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY

Gapan Academic Extension Campus

PASTA STATION
Gapan City, Nueava Ecija

A Marketing Plan

Submitted in Partial Fulfillment of the Requirements

for the Subject Marketing II (Marketing Management) under the Degree
Bachelor of Science in Business Administration Major in Marketing
During the First Semester, School Year 2018-2019

by:

MAY C. FERNANDO
BSBA 3-D

to:

Mr. Arvin D. Dizon, LPT, MDA

Subject Teacher

December 2018

1 A Five-Year Marketing Plan of Pasta Station

INTRODUCTION

Nowadays, technological development has created many benefits to all consumers. The
changing lifestyles of consumers are rapidly developing and continuously growing.
There is a need to everyone to satisfy his or her and wants. Most Filipinos are doing
their recreational activities together like family, students and workmates. They prefer to
go in a place where they can find and satisfy their needs and wants. But today there is
more convenient food stalls like food carts where they can buy their social needs.
Food stall business is the most practical business to start up with. Having just a
minimum capital investment, one can easily start a food stall business. The food stall is
located in Night Market Gapan City Plaza where people should come and go for
hanging out while eating with family and friends. That kind of placing strategy is a good
initial strategy especially when introducing a new product in a market that consumer can
try and taste like in a fancy restaurants. Since there is no existing fancy quality
restaurant in Gapan City that can served this kind of pasta dished, I decided to come up
with a new concept of creating a product that is more affordable but same taste like in
the fancy restaurant. And now “Pasta Station” is born a healthy pasta dishes started in
Gapan City. Pasta Station serves individuals, families, and take- away customers with
fresh, creative, attractive pasta dishes. Pasta Station used fresh vegetables and other
organic raw materials. Pasta Station may well be the single answer to every express
lunch dilemma you’ve ever had.

2 A Five-Year Marketing Plan of Pasta Station

EXECUTIVE SUMMARY

Pasta Station is giving you a healthiest pasta meal in the Gapan City and rapidly
developing consumer base. The signature line of innovation, premium pasta dishes
include moringa pesto with dried fish, marinara with mussels and oregano. Pasta
Station also serves fresh fruity healthy drinks.
Pasta station will reinvent the pasta experience for individuals whose conscious with
their health, and take out customers with discretionary income by selling high quality,
innovative product at a price designing, designing tasteful, convenient locations, and
providing industry benchmark customer service.
Pasta Station will be financed through a combination of direct owner investment to be a
long-term business.

The concept of Pasta Station is relatively new. The inspiration comes from the social
cravings for pasta. Pasta is a Italian dishes that serving a different taste of sauce and
pesto. The impressive Italian Delicatessen range of artisan Italian charcuterie and
cheeses wins our hearts over. Pasta Station go to great lengths to make everything
amazing the prices literally blow our minds. Food stall business is the most practical
business to start up with. Having just a minimum capital investment, one can easily start
a food stall business. The food stall is located in Night Market Gapan City Plaza where
people should come and go for hanging out while eating with family and friends. That
kind of placing strategy is a good initial strategy especially when introducing a new
product in a market that consumer can try and taste like in a fancy restaurants. Since
there is no existing fancy quality restaurant in Gapan City that can served this kind of
pasta dished, I decided to come up with a new concept of creating a product that is
more affordable but same taste like in the fancy restaurant. Pasta Station is sole
proprietorship business who conceptualized and developed by May Fernando who
currently finishing her degree in Marketing Management at NEUST Gapan Campus.

3 A Five-Year Marketing Plan of Pasta Station

COMPANY DESCRIPTION

Pasta Station is sole proprietorship business who conceptualized and developed by

May Fernando who currently finishing her degree in Marketing Management at NEUST
Gapan Campus. This is her second venture as she is already a Sales Leader Unit
Manager 2 at Avon Philippines Gapan Branch since 2007. She has been a great cook
and a baker at home and wanted to explore her passion and decided to put up a food
business. The company’s business is a high quality type of business that manufactures
and serves pasta dishes to customers. This business is focusing to create healthy and
nutritious recipes of pasta which will help dietary same time satisfy cravings. These
pasta dishes offer a broad range of flavors that caters to all its customers by providing
each product made to suit the customer, down to the smallest detail. The Pasta Station
provides freshly prepared pasta dishes at all times.

“Organizational Structure”

Counter Staff Cashier

Owner/General
Manager

Chef Dishwasher

“Organizational Chart Description”

Owner/ General Manager- she is the one responsible for planning, directing and
overseeing the operations and fiscal health of the business.
Counter Staff- he/she is responsible for greeting the customers, taking orders and
delivering products to the customers.
Cashier- he/she is responsible for the collection of payment from the customer; he/she
is also responsible for counting and tracking inventory.
Chef – preparing all the products and ensure that all menus are correctly and calculated
for maximum gross profit He/She ensure that good presentation of the dishes.
Dishwasher – they clean all the kitchen materials and areas, assists chef as requested
in task as directed including dishwashing, cleaning and trash disposal, maintains clean
and orderly cooking station, following sanitation and food preparation guidelines and
adheres dress code while on duty.

4 A Five-Year Marketing Plan of Pasta Station

Type of Business

The company’s business is a high quality type of business that manufactures and
serves pasta dishes to customers. This business is focusing to create healthy and
nutritious recipes of pasta which will help dietary same time satisfy cravings. These
pasta dishes offer a broad range of flavors that caters to all its customers by providing
each product made to suit the customer, down to the smallest detail. The Pasta Station
provides freshly prepared pasta dishes at all times.

Form of Business

The company is Sole proprietorship owned by Ms. May Fernando. This type of business
organization considering that it has a complete and decision making power over the
business. The owner is the responsible for the debts she pays personal income tax on
profits earned from the business.
A sole proprietorship is attractive to small investors because it is relatively easy and
cheaper to start up, and the owner can avoid intricacies of organizing this business.
Business decisions are only made by one person and all profits will be solely receive by
the owner. It has the flexibility of operation wherein the proprietor can simply shift from
one business activity to another without government approval. The owner will be also
held solely responsible for any losses, debts, or violation coming from business. Lastly,
if the business owner becomes deceased or incapacitated, the business will not
continue since they are treated as one and the same.

5 A Five-Year Marketing Plan of Pasta Station

Tomato Marinara with Mussels Fettuccine with Oregano

Ingredients:

1/2kg of mussels
1kg of fettuccine
1/2kg of fresh cherry tomato
Dashed of dried oregano
2tsp of olive oil
Salt and pepper to taste

6 A Five-Year Marketing Plan of Pasta Station

Malunggay Pesto Fettuccine with Dried fish

Ingredients:

1kg of fettuccine
500grams of malunggay leaves
250grams of fresh basil
100grams of cashew nuts
2pcs. Of dried fish shredded
500ml 0f olive oil (pesto sauce)
6cloves of garlic minced
Salt taste
Parmesan cheese (optional)

GEOGRAPHICAL LOCATION

The location of Pasta Station will be at Night Market Plaza, Gapan City Nueva Ecija.
This is the best choice of location, it is a place where students and families would come
and go. And also Night Market is one of the successful projects of the City Mayor for its
newly renovated city plaza. That is why people from other or nearby places are
interested to go and have fun while eating food. Rental cost is only P2,500 monthly
which is affordable compare to mall and other commercial areas or building a location
for it.

7 A Five-Year Marketing Plan of Pasta Station

8 A Five-Year Marketing Plan of Pasta Station
VISION, MISSION, GOALS

Our mission is to comply with highest food quality standards, and to maintain and pass
on respects for harmony between food and customers and future generations. We also
aim to maintain our leading position in Gapan market for top- quality pasta and expand
in the Nueva Ecija province.

 Financial Goals
1. Obtain financing to add infrastructure investments into the store/stall.
2. To provide profit sharing to crew members.
3. To increase revenues by at least 50% each year.
4. Minimize expenses
5. Promote products giving freebies to bulk orders

 Non- Financial Goals

1. Expand new branches in different locations to reach other potential markets.
2. To introduce new other pasta dishes with a high quality taste.
3. Franchiser are welcome who want to try or explore new products.
4. Promote products through internet.
5. Have s strong customer relationship.
6. Increase customer loyalty.

MARKETING GOALS AND OBJECTIVES

Sales Objectives

To
increase
the
annual
sales

Build
Launch
Sales Brand
New Objectives Awarene
Product
ss

Enhance
Costumer
Relations
hip

9 A Five-Year Marketing Plan of Pasta Station

1. The company will enhance customer relationships by giving out promos and
freebies
2. The company will launch new product lines.
3. The company will set a goal to increase their annual sales by 25%.
4. The company will continue to build brand awareness through advertisements.

Profit Objectives

Profit Chart

ponciana
luz kitchenette
10%
10%

redbucks 23%
pasta station 59%

This chart will show you how the company will have a gain share by end of the first
year. The company will continuously develop more product lines within the first year to
gain a comparative edge over it’s competitors. At the same time, improving the quality
of the product/s is also important.

10 A Five-Year Marketing Plan of Pasta Station

 Pricing Objectives

Introductory Price Promos & Discounts

Pricing Objectives

Target Return On
Match Competitor's Price Investment

1. The company will have to start with an introductory price for the first month to
attract customers.
2. Maintain and expand the outstanding reputation of the company.
3. Create an atmosphere where each person can work as a team member, with
clear goals and high standards that profit everyone.
4. The company will have to match with competitor’s price in order to stay
competitive.

Product objectives

Produc
t
identity

Set low Build

price Product Brand
but Objectives Aware
quality ness

Customer
Experien
ce &
Satisfacti
on

11 A Five-Year Marketing Plan of Pasta Station

1. the first high quality taste of Pasta station in affordable price in Gapan City .
2. Maintain food and labor costs consistent within the city.
3. The company will continue to build brand awareness through advertisements.
4. Be Provide the highest quality Pasta Station and service that the customer has been
receiving for over a year.

CORE COMPETENCIES

The Pasta Station seeks core competencies through a competitive advantage, in which
other competitors can’t provide the same. These are (1) quality raw materials (2)
knowledgeable, friendly and hardworking crew members (3) The firm intends to build on
these competencies through marketing efforts that increase the number of products
offered and build store’s branches to other places. (4) owner is hands on in all aspects.

SWOT ANALYSIS

Strength
 Pasta is a comfort food that can
easily have for lunch, snack and dinner to
everyone.
 sole proprietorship setup.
 Our product is unique and first kind
in the market.
 Our product is high quality taste like
in the restaurant but affordable.
 Raw materials are always available
Opportunity
 The company can introduce new
products that everyone can enjoy and
experience the Italian cuisine with the twist.
 Delivery options.
 Can cater different occasions like
office party, meeting and etc.
 can expand through franchising to
those who want to start a business.
Weakness
 The location is open only from
afternoon until night.
 Weekdays/nights might have low
customer population vs. weekends.
 Some customers are more
prepared to eat rice that pasta.
Threat
 Possible increase in rental space.
 Possible increase in raw materials
(inflation).
 Bad weather could hinder the stall
to operation
 Security of the location might
cause a potential problem.

Since Pasta Station will be a new product in the market, there will be plenty of
challenges in the beginning. By identifying the SWOT, this can identify the key areas
that need to be focused or to developed. Better prepare measures against weaknesses
and threats. Maximize the strengths and opportunities to achieve a competitive
advantage. And having a right marketing strategy can help Pasta Station to be known to
the market. By then the customer will start to purchase the products

12 A Five-Year Marketing Plan of Pasta Station

MARKET ANALYSIS

Since Pasta Station will be the first of its kind in Gapan City, it will start as an early
stage of the product life cycle. The target markets of Pasta Station are people who
always come in the market plaza given its location. The objective is to make sure
majority of the people of Gapan to know Pasta Station.

BUSINESS ENVIRONMENT

To ensure that the business will run properly, all legal requirements need to be
accomplished and completely secured. The list of government fees & licenses which
Pasta Station would need are listed below;

Political and Legal

Mayor’s Permit

13 A Five-Year Marketing Plan of Pasta Station

 Securities and Exchange Commission

14 A Five-Year Marketing Plan of Pasta Station

 Bureau of Internal Revenue

Bureau of Internal Revenue

15 A Five-Year Marketing Plan of Pasta Station

 Sanity Permit

16 A Five-Year Marketing Plan of Pasta Station

SUPPLIERS

Raw Materials Suppliers

Malunggay/moringa Gapan public market, waltermart,
savemore
Extra virgin olive oil Gapan public market, Waltermart,
Savemore, A&S, STM, Puregold, G&V
Fresh basil leaves Waltermart, puregold, savemore
Cashew nut Gapan public market, waltermart,
puregold, savemore, A&S, STM, G&V
Dried oregano Gapan public market, waltermart,
puregold, savemore
Dried fish Gapan public market, waltermart,
puregold, savemore
Tomato Gapan public market, waltermart,
puregold, savemore
Mussels Gapan public market, waltermart,
savemore
Fettuccine Baronia, Barilla, Dona Elena, San Remo,
Del monte
Salt Gapan public market, Waltermart,
Savemore, A&S, STM, Puregold, G&V
Garlic Gapan public market, waltermart,
puregold, savemore

Socio-cultural Environment

It is important to know the important of socio-cultural environment to the market. While

many of the restaurants in Gapan City offer Italian cuisine like pasta, not many of
Filipinos are familiar with the delights of Italian cuisine. This is also to understand the
purchasing behavior of the people. The lifestyles and values then characterize a society
of the group. As for Gapan City market, marjority of the people are kids and working in
the office and students who are always a limited time to have a quick snack, lunch and
dinner that can easy to purchase. Potential age groups are from kids to adults.

Competition

In the food industry, competition is everywhere. This can be post a threat to the
company or this can be used by the company as an advantage. Through research
Pasta Station can use the gathered information to improve its products and services
which can help the business to grow and be competitive in the food industry.

17 A Five-Year Marketing Plan of Pasta Station

 Table 3

Competitors

Competitors Years in Business Profile/ Description

Luz Kitchenette Early 70’s Restaurant
Ponciana’s 80’s Diner
Redbucks 2018 to present Café

THE TARGET MARKET

The target market can be segmented into three target populations.

Individuals: people that dine in by themselves.

Families: a group of people, either friends or a group of non-nuclear relatives dining
together.
Take away: people that prefer to eat Pasta Station’s food at another location.

Age is not the most defined demographic of this customer base; all age groups enjoy
pasta. The most defined characteristics of the target market is income. Gourmet pasta
stores have been very successful in high rent, mixed-use urban areas. These areas
have a large day and night population consisting of business people and families who
have household disposable incomes.

TABLE 4
Target Market

Clients/ Customers Demand Potential Sales

Individuals 150 18,000
Families 300 36,000
Take away 200 24,000
Total 650 78,000

THE MARKETING MIX

The following discussion outlines some of the details of the proposed marketing mix for
the Pastry Station products.

Product Strategy

 Customer target- people visiting the Gapan City Plaza.

 Competitor target- to target the competitor and try to establish a market share.
 The product will have the freshest ingredients including organic vegetables.
 The product will also be developed to enhance presentation, everything will be
aesthetically.

18 A Five-Year Marketing Plan of Pasta Station

Distribution Strategy

 Personal selling to use the rented stall or station as the main location for selling
the products

Promotional Strategy

 Customer service will be the priority.

 All employees will ensure that the customers are having the most pleasant dining
experience.
 Advertise to use posters, tarps, flyers, and social media.
 To give a customer promo and discounts for bulk orders even freebies.

Pricing Strategy

 The company will not set a high price for the products.
 Prices will be competitive; giving equal quantity of products to its value.
 Prices of bulk orders will be less compared to individual orders.

BUDGET, SCHEDULE AND MONTORING

4,500,000

4,000,000

3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

0
Year 1 Year 2 Year 3 Year 4 Year 5

Figure 4. Annual Sales for Pasta Station

19 A Five-Year Marketing Plan of Pasta Station

Though this history is short, Pasta Station enjoyed a steady increase in sales since its
introduction five years ago.
The timeline for expansion of outlets is shown in Figure 5. The implementation of these
tasks will be monitored closely and evaluated for its performance.
Pasta Station anticipates continuing operations into the foreseeable future with no plans
to exit the market because of its offerings that are made better convincing customers to
continue their patronage. There are no plans of stopping this business because Pasta
Station knows how to increase their sales. The company seeks to grow distribution of
products in order to gain more potential customers and as you can see the company
accomplished to build some branches and create new flavors in just a year of operation.
And as the years come these accomplished continues to get bigger through adding
more branches and franchises, more partners and create more flavors and new set of
meal.

YEAR 2
YEAR 1 New flavors: 2
New flavors: 4 Side dishes: 2
New branches: 3 New branches: 3
YEAR 3
New flavor: 3(imported
YEAR 5
cheese)
New side dishes: 5
Side dishes: 2 YEAR 4
Salad: 5
New franchise: 3 New flavors: 3 (organic pasta)
Set of meals: 4
New partners: 2 New franchise: 5
New partners: 7
New set of meal: 5 New partners: 5
New franchise: 5

Figure 5. Timeline for First Five Years of Marketing Plan

FINANCIAL INFORMATION

TABLE 5
Estimated Monthly Expenses

Expenses AMOUNT
Salary of Owner/Manager P10,000
All other Salaries and Wages 18,000
Rent 2,500
Advertising 1,200
Delivery Expense/transportation 3,000
Supplies 9,500
Telephone, Internet Services 700
Other Utilities 1,500

20 A Five-Year Marketing Plan of Pasta Station

Insurance 200
Taxes 1,000
Interest 300
Maintenance 3,000
Legal and other professional Fees 2,000
Miscellaneous 5,000
Total P57,900

PASTA STATION

Five Year Income Statement

2018 2019 2020 2021 2022

Gross Sales 1,170,000 1,076,400 2,053,350 4,158,033
936,000
Less:Expenses
Owner’s Salary 120,000 120,000 120,000 120,000 120,000
employees’ Wages 216,000 216,000 216,000 216,000 216,000
and Salaries
Supplies 114,000 120,000 90,000 170,000 350,700
Advertising and 14,400 14,400 14,400 14,400 14,400
Promotion
Delivery Expense 36,000 38,000 33,500 45,700 57,400
Bad debt Expense 10,000 12,000 15,000 17,000 21,650
Legal and 24,000 24,000 24,000 24,000 24,000
Professional Fees
Vehicle Expense 5,000 5,000 5,000 15,000 15,000
Maintenance 36,000 36,000 36,000 36,000 36,000
Expense
Miscellaneous 60,000 60,000 60,000 60,000 60,000
Expense
Rent 24,000 24,000 24,000 24,000 24,000
Utilities 18,000 18,000 18,000 18,000 18,000
Telephone and 8,400 8,400 8,400 8,400 8,400
Internet Service
Taxes and licenses 12,000 12,000 12,000 12,000 12,000
Depreciation 5,000 6,000 7,000 8,000 9,000
Interest 3,600 3,600 3,600 3,600 3,600
Insurance 2,400 2,400 2,400 2,400 2,400
Total Expenses 708,800 719,800 689,300 793,500 992,550
Net Income 227,200 450,200 387,400 1,259,850 3,165,483
before Tax
Tax 32% 72,704 144,064 123,968 402,896 1,012,928
Net Income after 154,496 306,136 263,432 856,754 2,152,555
Tax

21 A Five-Year Marketing Plan of Pasta Station

 KEY TO SUCCESS
 The food we served is voted a Gapan’s favorite every year.
 The products we serve are of the highest quality. We combine this quality with great
service and atmosphere.
 Current management staff and crew has a great deal of experience.
 Have a accessible location to everyone.

CONTINGENCY PLANNING
Pasta Station studied the risks and possible threats that might endanger the business
and cause the end its operation. Because of this the company decided to secure the
establishment through insurances. Financial problems may also occur but the company
made sure that it has the capability to apply for loans.

22 A Five-Year Marketing Plan of Pasta Station