Executive Summary

Truffles are well-known as some of the most delectable chocolate treats available. Typically,
chocolate truffles are a thin shell of powdered chocolate with a soft center. Our product, RY’s
chocolate truffles is a luscious, sweet chocolate rolled in irresistible toppings. It comes in a
variety of flavors namely, the original chocolate truffle flavor, dark chocolate, peanut or nutty
flavor, cookie’s and cream, and graham mocha. The RY’s chocolate truffles’ delectable flavors
make our product inviting to our target market who are not only those chocolate lovers but also
those health conscious. With its more than 60% of cocoa content, it reduces blood pressure,
and the chance of diabetes. It also boosts ones mood, decreases the chance of heart attack by
over 50%, and improves the memory.

The product uses pure chocolate bars with the special taste of five (5) assorted flavors. After the
truffles are formed in spherical shape, it will then be dipped for special coating. Having these
flavors will be a sure hit to cater the demands of our customers of different tastes and
preferences. The product will then be packed in five (5) pieces in a clear plastic package. A
variety of truffle-chocolate-coated flavors will be its distinct style. It will be named as "Ry's
Chocolate Truffles” and will come in assorted design.

Our business is basically a partnership that comprised four partners, namely, Biela Ching-Uy,
Janine Binobo, Esther Dillera, and Liezel Cang. Our management team is composed of
supervisors, operational manager, transportation head, manufacturer, store clerk and cashier.
The manufacturer is one of the supervisors since we value our product’s secret recipe we would
like the procedure to remain within those who know it.

The business’ main goal is to provide something for our target market that is not only new and
innovative but also unique. We would like to cater for those who are not only health conscious
but also budget conscious. The business aims to target all types of consumers including those
who are health conscious. As of the moment, we have decided to cater to students and locate
our stalls inside their school canteens while catering freelance outside of school through the use
of effective advertising and technology. We chose students as our main target market since
students these days are always on the go.

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Company Background

Ry’s Chocolate Truffles is basically a partnership who manufactures chocolate truffles that come
in a variety of flavors. This partnership is comprised of the following head members: Biela
Ching-Uy, Janine Binobo, Esther Dillera and Liezel Cang.

The business’ main goal is to provide something for our target market that is not only new and
innovative but also unique in a sense that we can introduce a product that seems unhealthy but
actually is. Aside from that, we would like to cater for those who are not only health conscious
but also budget conscious. Why chocolate truffles? Honestly, who doesn’t love chocolates?
Chocolate is universally known as an effective comfort food. It is medically proven to lessen
stress and encourage feelings of euphoria and above that it tastes delicious. It is the ultimate
food for indulgence. Chocolate has already made its name in society; all the company and
businesses needs to do is to establish its signature taste.

The business aims to target all types of consumers including those who are health conscious.
As of the moment, we have decided to cater to students and locate our stalls inside their school
canteens while catering freelance outside of school through the use of effective advertising and
technology. We chose students as our main target market since students these days are always
on the go. Some may be too late for class that they barely even have the time to have breakfast.
Our compact packages can do just the trick because it is compact, students can bring them in
their bags and eat them while in class or while walking or studying. Aside from that, some
schools prohibit their students from going out the campus to have lunch outside, Ateneo High
School for example. Students are then compelled to have lunch inside the canteen which can
help us have a specified target market unlike in malls where the consumers as well as sales are
unpredictable. Since our primary clients are students, we have designed our product to be
budget friendly and affordable. One example of this is giving discounts for large amounts of
orders; and since we also do freelance outside the school, we can also cater the needs of other
clients who prefer a more customized feel. The truffles we offer suits best in any occasions:
birthdays, Christmas parties, valentines, Halloween, and the like.

We believe that our product embodies qualities that enable us to stand out and be unique - our
varied flavors for example and the choice of customizing orders. Our business’ main goal is to
cater to our client’s needs in any way that can make them happy with our services.

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Management

Our business’ management will be comprised of the following positions: supervisors, operational
manager, transportation head, manufacturer, store clerk and cashier. Refer to Appendices for
the organizational structure

Since we consider our business as a startup business or small business we need to resort to
means that will allow us to make financial decisions flexible. Therefore, Supervisors will be
comprised of the main financers of the business and will divide the monthly net income equally.
The operational manager will be in charge of managing stores in the schools and supervising
store clerks and cashiers. He or she will also be in charge of monitoring sales income and the
personnel’s relation to his or her customers and will also be in charge for balancing sales at the
end of the day. The manager will also surrender the sales to his/her supervisors at the end of
every day. Since our business is still starting we will not require our manager to be a graduate of
a 4 year business course. Instead, our requirements for our operational manager will be at least
18 years of age, at least a high school graduate, can operate under pressure, has good public
relation skills and has a pleasing personality

The transportation head will be in charge of deliveries of the products to the different stalls. He
will also be in charge of inventory of products that the manufacturer will turn over to him. The
requirements for transportation head will be male, 18-25 years old, at least high school graduate
and has pleasing personality.

The manufacturer will most likely be one of the supervisors since we value our product’s secret
recipe we would like the procedure to remain within those who know it. The manufacturer will be
in charge of making the product and will also be in charge of inventory of the business’ raw
materials.

The store clerk and cashier will be in charge of handling and selling the products in the stalls
and also public relations. They will also be in charge of inventory in regards to the beginning
inventory vs. the ending inventory depending on the deliveries made by the transportation head.

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Cost/Capital Requirement

The total initial capital required for the business is Php50, 223.40 in the first month of operation.
This includes pre-operating expenses such as booth set-up worth 12,000.00, an alloted gasoline
expense of 1,470.00, advertising fees of 300, one month advance rental of 12, 486.40,
equipment expense of 12,50.00, an initial expense for raw materials for the first month will be
8,000.00, and other fees which will include business permits and registration fees will add up to
3,467.00.

Financial Plan

The capital for the start-up will come from the individual contributions of the 4 partners. Each
individual partner is required to contribute P25, 000 that would sum the entire capital to. Each
individual is entitled to 25% of the net worth of each monthly sale. The partnership will comprise
of one general partner which will be able to include his or her personal assets as a liability for
the start-up capital to finance the business operations while the other partners are liable only to
the contribution given in the initial fees of the business. Personal assets of the limited partners
may or may not be involved depending on arrangements made by the partners.

Marketing plan

Inside the campus, the products will likely be sold based on the percentage of those who are
interested in the product and those who like to eat sweet foods. We conducted a survey of 51
respondents from the 1,959 Business and Management students, 27 male and 24 female
students. The respondents' rating of our chocolate truffle are the following: 2% rated it as
excellent; 48% rated 5 (being the second highest); 42% rated 4; 5% rated 3; 2% rated 2; 1%
rated 1 (being the second lowest); and none of them rated it as it needs improvement. We
consider those respondents who rated our chocolate truffles from 4 to excellent as our potential
buyer, which covers 92% of them. Refer to Appendices

The result shows that majority of the respondents definitely like to have a store that sells
chocolate truffles. There were more male respondents than female. Although female
respondents participated in the survey, more male respondents showed interest in the product
which also participated in the product testing and survey than female students. Thus,
promotional measures would concentrate more on the male gender appeal and moderately on
the female gender. It could be that female are more diet conscious than male, which made them
decide not to taste it.

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From the 92% who are interested, it will be broken down base on the following to determine the
main customers. The 92% will be deducted by those who have no daily allowance and those
who are only willing to pay Php5.00 for 1 chocolate truffle and up to Php10.00 for 3 pieces of
chocolate truffles, since the product will be sold at Php30.00 for 5 pieces in a pack. Refer to
Appendices

Based on their willingness to buy our chocolate truffles, out of the 919 main customers, 47% of
them would consume 1 to 3 pieces of chocolate truffles every day or 432 students, 33% are
willing to consume 4 to 6 pieces or 303 students, and 20% are willing to consume 7 or more
pieces or 184 students. 432 students are likely to purchase frequently as it shows that they like
to eat 3 pieces chocolate truffles on a daily basis, while 303 students are willing to consume 4 to
6 pieces every day, and 184 students may purchase 7 or more pieces in a day.

The percentage of the market share that can be saturated by the business will be computed as
follows:

919 main customers / 1959 BM students = 47% of the BM Student Market

The trend today is considered to be as internet genre and youths are the top most users of it.
Therefore it is just appropriate for one company, as youth as their primary target market, to
invade their most usage tools. But for the case of food enterprises, making orders in the internet
is kind of tough one due to number of reasons like a long time indulge in preparing their orders
and delivering it right to the hands of the customers and above all the delivery expenses is
unrealistic for a small amount of prices for Ry's Chocolate Truffles even if the enterprise will
impose delivery fee. Therefore, for the case of Ry's Chocolate Truffles enterprise, it will only
invade the internet, particularly on social networking sites such as Facebook, Twitter, Tumblr,
Photobucket, Multiply, and etc., just to promote the products of Ry's Chocolate Truffles and
persuade them to come and visit their Ry's Chocolate Truffles store. Refer to Appendices

As the enterprise reach its 3rd month in the industry, part of our promotional measures is to give
discounts to buyers who will buy a minimum of 10 packs. With this, they are entitled to a 5%
discount off from their purchase. Through this, people would also be attracted to purchase more.

Aside from giving discounts, we are also offering customization of chocolate truffles. Since this
is the trend now, even to established fast food chains, we are also willing to adopt this. We also
offer packaging this product for a gift to special persons.

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To keep the market for three (3) years, part of our advertising and promotions is through
sponsorship of big events inside the campus. For example is the Awitenista, which is an annual
song writing competition, we are willing to sponsor this big and grandiose event, and as an
exchange from them will be the promotion of our products. Promotions would be in the form of
banners and video advertisement. Since this is a big event, a pool of potential customers could
be added from the promotions during this event.

Ry's Chocolate Truffles strive to be significant compared to its existing competitors. Its ideal
image would consist of having real ingredients in the product. The product varies from the
different chocolate flavors and is sold at a distinctive price that could attract consumers who are
willing to pay at a minimum amount. Not only does the business focus on the price, but also on
the quality of the product. It will focus on the quality of the chocolates that will be used and other
ingredients needed, as well as the final presentation of the product which includes the
packaging. The firm ensures cold preservation of the truffles to ensure its quality.

Ry's Chocolate Truffles delivers its final product to the selling location in the campus. It will be
transported by a hired personnel who be delivering the products in the selling location. Once the
delivery is done, the product will be preserved in the refrigerator which will last for three (3)
weeks prior delivery. The food shelf lasts best before twenty-one (21) days, and after that, it is
best for the product to be disposed to avoid selling lesser quality truffles. This is the reason why
the business is pursuing to produce products equal to the demand of the consumers to avoid
disposing excess products. The daily production target of the business is 80-100 packs which
consists 400-500 pieces of Chocolate Truffles. The production capacity will change depending
on the demand of the market.

The potential growth of our target market for the following 3 years would be after the first year of
operation (2013), there would be an increase of 0.5%. On the second year, our potential market
would have an increase of 14% and on the third year there would be a 0.3% increase. Refer to
Appendices

The product is a pastry which uses pure chocolate bars with the special taste of five (5)
assorted flavors, and these are; original (chocolate flavor), dark chocolate, cookies and cream,
peanut flavor, and mocha flavor. After the truffles are formed in spherical shape, it will then be
dipped for special coating. Having these flavors will be a sure hit to cater the demands of our
customers of different tastes and preferences. The product will then be packed in five (5) pieces
in a clear plastic package. A variety of truffle-chocolate-coated flavors will be its distinct style. It

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will be named as "Ry's Chocolate Truffles” and will come in assorted design.

The selling price will be Php30.00 per pack on order to cover the necessary expenses
generated in creating the product. It is computed based on the 50% mark-up on the total cost of
Php3.28 of making per pack. A good quality of chocolate is needed in order to serve the
customer's satisfaction. And this good quality has to be bought in a high price, not just in the
ingredients used but also in preserving the truffles to serve best our customers.

The promotion will enforce word of mouth marketing as such is not costly on the limited budget.
Also the firm will invade the primary tools of the youth which is the internet (promoting on
trending social networking sites such as; Facebook, Twitter, Tumblr and Multiply); creation of
business' website for browsing of relevant information and promotion as well; dissemination of
flyers during the opening of the store to inform the public; and most importantly to sponsor
special youth relevant events to show the public that Ry's Chocolate Truffles as their taste bud
and health best friend truly cares for them. The cost of promoting the business using flyers is
allocated for Php200.00 of the weekly budget.

The specific location would be at the Ateneo de Davao College Food Court.

Ry's Chocolate Truffle is new to the market. In our geographical location, we are the pioneering
firm who will be selling the product in the Ateneo Community. When viewing it in a monopolistic
competition, there are food businesses in the Ateneo Food Court that are selling differentiated
products of deserts, and these are: Frost Bites which is selling ice creams, sundaes, and floats
as deserts. Their strength is that it saturates the entire market, since it is the only business firm
selling the said products inside the campus. On the other hand their weakness is other students
prefer to go out from the campus to buy sundaes at McDonald’s, since its prices are more
affordable than the selling price of Frost Bites. Second is the Silverfrost (Kiosk), which is
selling variety of flavored juices and sandwiches. They also hold a bigger portion of the market
share when it comes to snacks and deserts, since they are hitting the market with two stones.
Their drinks do not promote good health to the students, since they are using powdered juice,
which is not also good for the firm. Third competitor is Manong's Frutti, the firm sells fruit
shakes and other flavors such as mocha, and cookies cream; deserts and sweets like mango
float, leche flan, fruit salad, blue berry cheese cake, chocolate mousse, and etc. This firm sells
their products in a student friendly price which also gave them a large portion of the market
share. Not only that their viands are affordable, it is also in their store where you can buy
sumptuous deserts at cheap prices. Their only weakness as we can see is their promotional

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measures. The firm doesn't spend too much in promoting their products. Fourth potential
competitor is Dairy Best, this firm sells fresh milks in three (3) flavors; plain milk (original flavor),
Chocolate flavor, and Durian flavor. These products are undeniably nutritious and delicious. It is
nutritious because it is a fresh cow's milk, delicious because you can enjoy the creamy feature
of milk when drinking it. Their weakness is on its pricing, their products are expensive. When
you buy one cup of it of about 230 ml or less, it will cost you Php10, just for that drink, and their
milk on tetra pack costs Php20. The students would prefer to buy at Icecapades since their
serving is good at affordable prices. Fifth potential competitor is Milk Tea; this firm is also a
pioneering business stall which sells milk tea from Taiwan. This firm is considered to be a
potential competitor, since our firm and this firm is new to the market, the students have to
choose between us since our product's prices are close to each other. The customers has to
choose between us in cases if their budget is only limited for deserts and sweets. Their
weakness also falls to pricing, their price is also expensive, and they practice monopoly in
running their business, since they are the only firm that sells that kind of drink in the food court,
they tend to make the most of it and set high prices to target market, which are the students.
Having these prices are really expensive for students and not good, they might not be able to
penetrate fully to the target market, which might also lead them to exit in the industry.

The marketing strategy will include promoting facts about the product. The business will display
certain facts and health benefits of chocolates in front of the stall to be recognized by the
customers.

We will sell products by Php6.00/piece in order for other consumers to acquire them easily or to
try it for the first time. This will attract curious consumers on the project. Improve more on the
outer designs, toppings, add-ons, and coatings.

*prices may vary depending on flavors.

Manufacturing

The processes of making Ry’s chocolate truffles according to its flavor are all the same. The
difference is the dip and ingredients for the flavoring of truffles. The first step is to melt the
chocolate bar using double burner. Note that chocolate must not be melted in a direct heat. Next
is to pour on the mixture of whipped All Purpose Cream and Condensed Milk then
refrigerate. After refrigeration, roll it to make it into ball shapes and roll it in Cocoa Powder (for

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the original and dark chocolate flavors), for the other 3 flavors, refer to the Appendices for the
floor plan.

Location

RY’s chocolate truffles is planned to be located in the Ateneo de Davao University cafeteria,
Finster Building, Jacinto. The business would be profitable because it is located in the university
where are our target market is the students. The location would always be filled with students
since it is where almost every student or teacher in the university is having their meals in their
free time. It would also be advantageous because the space rent would be cheaper and the
school would not require cash advances as compared to malls that do. The renewal would also
be monthly and if the business would not be profitable in one month, you can choose to leave
unlike other places like malls and commercial spaces; you have to stay for duration of time
regardless of having a high income or low income. There’s a space in between i-cob and lush
greens food corner stalls that fits for RY’s chocolate truffles stall. Refer to Appendices

In regards to transportation access, Ateneo’s policy usually requires tenants to purchase a

special sticker from them to be placed in the driver side of their windshields in order for security
to identify them as tenants otherwise, their vehicles won’t be allowed to enter the campus. Aside
from the sticker, tenants are also obligated to pass a 2x2 picture to the food court’s office so
they can make a tenant’s id so tenants will be allowed inside the campus. This is for security
purposes. Other requirements include business permits, sanitary permits and barangay
clearances.

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