Renz Gerald I.

Bertoldo
Alex III I. Camarillo
Juleah Marie B. Aceron
Avegail R. Dumaop
Edigieb Pasin
  Executive Summary

Earthkins exists to offer mouthwatering and to-die-for munchkins

that'll undoubtedly satisfy one's tastes especially those with sweet teeth
in the city of Digos. Historical data shows that there's an increasing and
never-ending demand for delicacies among the population of Digos,
but the existing five well-known delicacies-selling competitors aren't
able to meet the said demand as well as their products tend to be
outdated and not fit the trends these days. This case becomes handy
to us, giving us an opportunity/call of meeting such demands. Our
company's primary advantage is the feature of our own product: (1) the
distinctive yet heavenly taste of our munchkin; (2) the handful of
choices for toppings that will add flavor and sweetness to the dessert;
and (3) customers' freedom to design their own dessert to their liking.
We are aiming for the trendy and artistic sides of our potential buyers
especially the youth and the children and this will serve as our main
strategy. Our business will operate as a stall with a great location in
order to for our customers to find convenience while buying our
products. We'll also use social media sites to promote and increase
visibility of Earthkins and also achieve market penetration. There are
more in Earthkins that will make our customers be loyal to us.
Initial capital is 17, 358 for a month and total revenue in year 1 is
1,463,400.

 Management and Organization

Company name: Earthkins

Logo:

Address: Purok Nangka, Patricia Village, San Jose, Digos City

Vision Statement: Our product will be a leading provider of joy and pleasure,
satisfying everyone’s taste buds.

Mission Statement: To give pleasure and joy to everyone while ensuring the
materials used, the process, and the output or the product are on high quality.

Key Personal: Owner

Workforce and Support Personnel: Owner/ Manager

Organizational Chart:
Renz Gerald I. Bertoldo
Owner/ Manager

Edigieb Pasin Alex III I. Camarillo Juleah Marie B. Aceron

Sales Manager Financial Manager Production Manager

Avegail R. Dumaop
Employee
Ownership: Single Proprietorship

Capitalization: ₱ 50,000.00

Compensation and Incentives: SSS, PhilHealth, PAG-IBIG

External Management Support: Parents and Entrepreneurship teacher will

be considered as Advisory Council.

 Product Plan

Purpose of the Product

EARTHKINS offers a variety of munckins that gives our customers plenty of

what they crave. Our company also offers customized or personalized
munckins to satisfy our customers’ creative side. We have a bunch of
toppings to add flavor and for creativity.

Product’s Unique Features

Our product has two unique features that would distinctly satisfy our
customers. First, we have veggies included in the ingredients. We value our
costumers' heath so we ensure that our product isn't just a dessert but healthy
as well. And second, we have this chocolate syrup as a topping to enhance
our products' (munchkins) sweetness. Our customers will have the freedom of
how sweet their dessert would be.
Material and Equipment Requirements and sources of supply

The ingredients and their sources are as follows:

INGREDIENTS SOURCE

Potatoes
Sweet potatoes (Kamote) Local/Public Market of Digos City

Sugar
Grahams
Ace biscuits Gaisano Mall of Digos
Marshmallow
Chocolate powder
Chocolate syrup
Condensed milk
Coconut pulp

Water Faucet
Production Process and controls that will be used to manufacture the
product

Procedure:

1. Prepare all the things needed.

a. Wash all the materials and ingredients needed to be washed.
b. Gather them in one place properly.
c. Peel all the potatoes and sweet potatoes (kamote).
2. Start to cook the veggies.
a. Boil the peeled veggies in hot water for about ten minutes until it
softens and becomes cooked.
b. Put the cooked veggies at one corner, then let it dry.
3. Mixing ingredients.
a. Smash the potatoes and sweet potatoes (kamote), also the Ace
biscuits.
b. Mix the smashed veggies with condensed milk. Do the same
procedure with the powdered grahams and Ace biscuits.
4. Combine and mold the ingredients into spheres.
a. Get one marshmallow and half tablespoon of veggies, either potato
or sweet potato (kamote). Encircle the veggies around the
marshmallow. Do this until the last piece of ingredients.
b. Get one product from procedure 4-a and coat it with the combined
condensed milk and powdered biscuits and create a chocolate sphere.
Do this procedure until you're out of ingredients.
Distribution and Logistics

Our company, Earthkins, will initially operate as a stall selling delicacy

(munckin), of course, with the help of social media to promote our products.
Our stall will be located at a convenient place and very visible so that potential
customers can easily approach us.

Regulatory and other compliance issues

Earthkins will be registered as a single proprietor enterprise with the

Department of Trade and Industry provincial office. A barangay clearance will
also be secured before it applies for a Mayor’s permit to operate as a micro
enterprise. The BIR registration will also be done after getting all the
necessary registration documents and permits from DTI, Barangay, and
Mayor’s office.

 Market Plan

Market analysis, which includes demand and supply vis-à-vis competitors

Historical Total Supply: Previous 4 years delicacies sold by Total

Data (4 Demand competitors per year Supply
years)

A B C D E

Year 1 750,000 383,250 182,500 73,000 18,250 5,475 662,475

Year 2 787,500 402,412 191,625 76,650 19,162 5,748 695,597

Year 3 811,125 414,484 197,373 78,949 19,736 5,920 716,462

Year 4 835,458 431,063 205,267 82,106 20,525 6,156 45,117

Marketing and Sales Strategy

Marketing Strategy

Our target customers are mostly teens, hence we'll use trendy
campaigns/advertisements to pique their interests, as well as to pull more
potential buyers to spare our products a taste. In order to do that, we'll use
social media sites as mediums of our campaigns/advertisements, such as
Facebook, Twitter, and Instagram.

Sales Strategy

Our sales strategy revolves on "buying at Earthkins conveniently". We

are operating as a stall and we assure our location is easy to approach and is
visible to potential buyers. Convenience is one of our cards against our
competitors.

Other than the convenience of our location, there are some important
factors we rely on to increase our sales. First, the distinct yet addictive taste of
our products that will surely give an enormous impact to customers. Second,
the trendy and artistic vibe of our offers will lure some influencers that will help
us promote our products. And lastly, the quality plus affordability of product
will make our customers stay and be loyal to us.

Product Characteristics or Features:

Earthkins products have plenty of competitive features:

 Customers' Freedom to Design - We offer this feature to give our

buyers artsy satisfaction.
 Freedom for Sweetness - This feature is made for the customers to
have the privilege to choose how sweet their dessert would be.
 Affordability with Quality - Price plays a vital role in doing a business
and customers tend to chase after cheaper products not minding its
quality. Hence, we ensure economic value for our products as well as
it's to be high quality.
 Pricing Policy

The values of our products which are the munchkins, no matter what
flavor, are specified with only one tag price. Thus, the additional varieties of
toppings are priced differently.

Classic munchkin: Php. 10

Toppings Additional Payment Price (peso)

Chocolate syrup +5 15
Hershey’s +7 17
Sprinkles +8 18
Milk powder +5 15
Nips +8 18
Coconut pulp +2 12

Sales Projections

Toppings Pri Quantit Year 1 Year 2 Year 3 Year 4 Year 5

ce y per
month

Qty Peso Qty Peso Qty Peso Qty Peso Qty Peso
(units (units) (units) (units) (units)
)
Chocolate 15 1,500 18,00 270,000 21,600 324,000 25,920 388,800 31,104 466,560 37,324.8 559,872
syrup 0

Hershey’s 17 1,350 16,20 275,400 19,440 336,480 23,328 396,576 27,993.6 475,891. 33,592.32 571,069.44
0 2

Sprinkles 18 900 10,80 194,400 12,960 233,280 15,552 279,936 18,662.4 335,923. 22,394.88 403,107.84
0 2

Milk 15 1,500 18,00 270,000 21,600 324,000 25,920 388,800 31,104 466,560 37,324.8 559,872
powder 0

Nips 18 900 10,80 194,400 12,960 233,280 15,552 279,936 18,662.4 335,923. 22,394.9 403,107.84
0 2

Coconut 12 1,800 21,60 259,200 25,920 311,040 31,104 373,248 37,324.8 447,897. 447,89.8 537,477.12
pulp 0 6

Total 7,950 95,40 1,463,40 114,48 1,762,08 137,37 2,107,29 164,851. 2,528,75 197,821.4 207,1526.4
0 0 0 0 6 6 2 5.2

Note: There will be a 20% increase in the quantity of munchkins to be sold as well as
its price.
Market Analysis Summary

The demand for the mouthwatering delicacies in Digos City has shown
a steady growth over the last four years. It is observed that in food industries,
it is not a 1:1 process for customers tend to buy more than one product as
much as to their satisfactions. This market segment favors trendy and quality,
as well as delicious snack or dessert at an affordable price. In order to
increase market penetration, Earthkins will offer various of flavors and
toppings aside from the already delicious classic munchkin. Moreover, with
the use of social media sites we will promote our products and improve or
increase the visibility of Earthkins to potential customers. Earthkins offers
price differential based on the additional toppings with prices ranging from 12
pesos to 18 pesos per piece depending on the said toppings.

 Financial Plan

Start-up summary

Expenses Cost/ pc. 7,950 pieces Year 1

Ingredients:
Potato 10 265 3180
Sweet Potato 10 159 1908
Condensed Milk 34 180 2160
Graham 56 594 7128
Ace biscuit 48 509 6108
Marshmallow 36 191 2292
White sugar 20 106 1272
Hershey’s 25 25 300
Chocolate Syrup 124 62 744
Sprinkles 30 30 360
Milk powder 54 25 300
Nips 30 30 360
Coconut pulp 12 12 144
Materials needed:
Spoons 20 20 240
Bowls 100 100 1200
Gas stove 5000 5000 60000
Cupcake wrapper 50 100 1200
Other utensils 150 150 1800
Utility:
Electricity 800 800 9600
Water supply
Labor costs 7500 90000
Permits and Licenses 1500 18000
TOTAL 17,358 198,696
5-years Profit/Loss Statement

Earthkins Company
Projected Income Statement for Years 1-5
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue 1,463,400 1,536,570 1,613,398.5 1,694,068.425 1,778,771.846

Cost of 175,446 184,218.3 193,429.215 203,100.6758 213,255.7096

Goods Sold

Materials 85,446 89,718.3 94,204.215 98,914.42575 99,161.71181

Other direct 90,000 94,500 99,225 104,186.25 109,395.5625

expenses

Gross Profit 1,287,954 1,352,351.7 1,419,969.285 1,490,967.749 1,565,516.136

(Loss)

Gross Income 1,287,954 1,352,351.7 1,419,969.285 1,490,967.749 1,565,516.136

Permits 1,500 1,500 1,500 1,500 1,500

Utilities 9,600 10,080 10,584 11,113.2 11,668.86
Income 1,287,954 1,352,351.7 1,419,969.285 1,490,967.747 1,565,516.136
before
interest and
taxes

Tax 412,145.28 432,752.544 454,390.1712 477,109.6798 500,965.1638

Net income 875,808.72 919,599.156 965,579.1138 1,013,858.069 1,064,550.972

loss
5-Years Cash Flow

Earthkins Company
Projected Cash Flow for Years 1-5
Year 1 Year 2 Year 3 Year 4 Year 5
Beginning 198,696 1,063,404.72 1,971,423.876 2,924,918.99 3,926,163.809
Cash
Balance
Cash Inflows
(Income):
Cash Sales 1,463,400 1,536,570 1,613,398.5 1,694,068.425 1,778,771.846

Total Cash 1,463,400 1,536,570 1,613,398.5 1,694,068.425 1,778,771.846

Inflows
Cash
Outflows
(Expenses):
Payroll 90,000 94,500 99,225 104,186.25 109,395.5625
Supplies 85,446 89,718.3 94,204.215 98,914.42575 99,161.71181
Taxes & 1,500 1,500 1,500 1,500 1,500
Licenses
Utilities & 9,600 10,080 10,584 11,113.2 11,668.86
Telephone
Other: 412,145.28 432,752.54 454,390.1712 477,109.6798 500,965.1638
Subtotal: 598,691.28 628,550.84 659,903.3862 692,823.5556 722,691.2981
Other Cash ------------ ------------ ------------ ------------ ------------
Outflows
Loan ------------ ------------ ------------ ------------ ------------
Principal
Owner’s ------------ ------------ ------------ ------------ ------------
Draw
Subtotal ------------ ------------ ------------ ------------ ------------
Total Cash 598,691.28 628,550.84 659,903.38 692,823.55 722,691.29
Outflows

Ending Cash 1,063,404.7 1,917,423.8 2,924,918.99 3,926,163.8 4,982,244.4

Balance
5-Years Balance Sheet

Earthkins Company
Projected Balance Sheet
Year 1 Year 2 Year 3 Year 4 Year 5
ASSETS
Current
Assets:
Cash at 875,808.72 919,599.156 965,579.1138 1,013,858.069 1,064,550.972
hand
Total 875,808.72 919,599.156 965,579.1138 1,013,858.069 1,064,550.972
Current
Assets:
Fixed --------- --------- --------- --------- ---------
Assets:
Total Fixed --------- --------- --------- --------- ---------
Assets:

Total Assets 875,808.72 919,599.156 965,579.1138 1,013,858.069 1,064,550.972

LIABILITIES
& EQUITY

Current --------- --------- --------- --------- ---------

Liabilities
Income 412,145.28 432,752.54 454,390.17 477,109.68 500,965.16
Taxes
Payable
Short-Term --------- --------- --------- --------- ---------
Loan
Payable
Total 412,145.28 432,752.54 454,390.17 477,109.68 500,965.16
Current
Liabilities
Total 412,145.28 432,752.54 454,390.17 477,109.68 500,965.16
Liabilities
Capital
Capital 50,000
Add: Net 875,808.72 919,599.156 965,579.1138 1,013,858.069 1,064,550.972
Profit
Less: --------- --------- --------- --------- ---------
Drawings
Net Capital 925,808.72 919,599.156 965,579.1138 1,013,858.069 1,064,550.972

Total 875,808.72 919,599.156 965,579.1138 1,013,858.069 1,064,550.972

Liabilities
and Equity