MR.

FROST

BUSINESS PLAN

JUMOREN GILWANO

HEIZEL JANE JUTAR

SEHAM SAMANA

ROSSELE CABE

December 2018
 CHAPTER 1

BACKGROUND OF THE COMPANY

 Mr. Frost ice cream is a scoop shop located on a busy street of downtown street

JP Laurel Avenue, Dadiangas East, General Santos City. Mr. Frost ice cream is a start-

up shop and has a long-term presence plans in the mall market. Along with a 500,000

investment by JUMOREN M. GILWANO, hopes to initially make a successful effort to

secure start up financing through a combination of investment and debt to establish the

location.

Mr. Frost is looking to bring frozen custard ice cream, where the product is

currently unavailable; the company’s initial offerings will be a mixture of rich, creamy

frozen and bright ice cream in a selection of sizes. Through marketing effort we intend

to create a loyal customer base that will make our ice cream known for it’s healthy, yet

affordable to everyone.

Mr. Jumoren made this business for an inspiration of his childhood days because

those times he wanted to buy a piece of ice cream on vendor but according to him his

family cannot afford due to some reasons instead, to buy their basic needs and other

necessities. When he grew up, among of his dream to becoming a businessman by

building his own ice cream shop in the future. He also added that in the next chapter of

his goals, he want to give a free ice cream scoop to the streets children, to the less

fortunate family as part of his effort to give back to the society.

He got his capitalization from savings of his 10 years of employment from abroad

and debt financing from a close friend business. Mr. Frost is a unique idea for ice cream

business industry. From The raw materials, and the 1 st vegetables made ice cream that

is very competitive among the other ice cream brands.

 We predict our first year sales will reach approximately 300,000 and climb to over

400,000 by the end of the 2 nd year. Despite an initial loss in year one, we expect to

become profitable by year two without endangering our cash reserves. According to our

marketing research, these sales should be easily attainable by even a start up shop.

Our overall financial model is conservative and it will emphasize long-term quick returns

investment.

Vision

To become the leading ice cream business in the market while promoting the

highest standard brands and quality assurance to our loyal customers.

Mission

To create natural frozen ice cream with a commitment to incorporating the

freshest, richest and creamiest ingredients into a world class quality product.

Goals & Objectives:

 Gain a higher market share in first year of business in that particular area.

 Make long-term relationships and profitable with customers

 Provide eco-friendly environment.

 Make courteous, loyal, and sincere to our service.

 Maintain sales throughout all seasons to ensure consistent returns are achieved.
 CHAPTER II

THE MARKETING MIX (4 P’S)

Products

Mr. Frost will sell in cone, 30 ml and in tube quantities of sweet vegetable ice

cream. The Mr. Frost ice cream is currently available in three varieties, which are

outlined in the table below. The ice cream is made from fresh organic vegetables.

Vegetables used in Mr. Frost ice cream are freshly bought at market prices, there’s no

need for vegetable restoration, all freshly served. The additional flavorings’ are

purchased from a grocery store. The ice cream will be packaged in 30 ML plastic cup, a

10 L tube and in a Belgian cone for retails. Each cup will have a label listing the

company name and address, the product name, the net quantity in the pail, a best

before date, a list of ingredients, and the company’s logo.

Current Mr. Frost Varieties

Sweet Squash
Papaya Dew
Choc’N Beans

Pricing

Mr. Frost ice cream will target all class consumers. The ice cream will be priced

at P20.00 for a 30 ml cup, 10.00 for cone and 800.00 for 10L tube will be sold in a very

competitive, but profitable market. Mr. Frost will compete against other competitive ice

cream brands such as Lowill and Alexander Electro-Mix Ice Cream at Lagao, Snow

Dreams at Malakas, General Santos City in terms of bulk services, Ice cream Parlors in
mall and marts, and sorbeteros in streets. Given that 10L are bulk quantities of ice

cream, the product will be sold based on contracts with customers to ensure steady

production and guaranteed sales. The intensity in which will penetrate the contract

market for ice cream will create consistent profitability for the business.

Promotion

Mr. Frost will employ a variety of promotional techniques. Promotional websites

such as Facebook, and Instagram and face-to-face interaction will be the focus. Along

with these techniques, sampling will be a way in which Mr. Frost can acquire new

clientele. Brochure will allow customers to learn more about Mr. Frost ice cream

selection and image. A website will be constructed to allow potential and existing

customers of to place orders, view product information and discover the image. Costs

will be associated with this Promotional website to keep it secure and functioning

properly. Face-to-face selling will also allow a personal connection with their

customers.

Place

The geographical target market includes all of JP Laurel Avenue, Dadiangas

East, General Santos City, General Santos City with an initial emphasis on high-end

restaurants, hotels and conventions centers in and around Barangay East. Mr. Frost

will distribute their product to the target market in Barangay West and area by means of

the delivery vehicle purchased. The ice cream will be sold directly from Mr. Frost Store

to the retail.
 CHAPTER III

SWOT ANALYSIS

The overall evaluation of a company’s Strengths, Weaknesses, Opportunities, and

Threats is called SWOT analysis. SWOT analysis helps explore the areas of possible

changes in marketing activities. A brief discussion of Mr. Frost ice cream internal and

external environment is as follows:

Strengths Weaknesses
 The owner is an expert maker of ice  Workload for employees due to limited

cream. production staff.

 Availability of capital.  Buildings and equipment need to be

 Ease of communication due to small purchased which will come at a high

work force cost

 Vegetables are grown in close  Freezer space will be an important part

proximity to processing facility of the facilities but the company’s

 Facility located off of a paved road needs may change drastically over

 More land for building expansion is time

easily acquired  Insufficiency in distribution channel

 Achieved BFAD certification for food management.

safety.  Lack of modern technology.

 Healthy benefits, low cost and  Lack of promotional programs.

delicious.
 Opportunities Threats
 Need for ice cream in hotel and  Competitors in the market will fight

convention centers nearby for the market share is trying to

 Need for this type of unique dessert acquire.

product in special events market  Contracts may be difficult to maintain

 The Physical Store is nearby year-round.

churches, schools and park which can  Too many ice cream manufacturers

be the probable buyers. in the market.

 Availability of raw materials  Introduction of advance technology.

Marketing Strategy

Key Planning Assumptions

1. Mr. Frost provides a unique and adaptable product that fits well into a market

where consumers are looking for a quality local ice cream product they can tailor

to their needs.

2. Mr. Frost will strive to capture off-season sales through the superior quality and

taste of their product that will leave customers desiring the product.

3. Mr. Frost will target the segment of the market that values quality over price

Strategy Statement

To explore a niche market in the General Santos City ice cream industry by positioning

Mr. Frost as a company that provides a unique option allowing customers to tailor a

signature ice cream brand to meet the needs of the menu at their locale.
Channels of Distribution

Mr. Frost is a local ice cream supplier and the inventory travel time between the

ice cream production and the final destinations will be minimal. Consumers will be

using contracts to purchase ice cream and this will ease distribution. A Freezer Van will

be rented to allow for ease of distribution. This method will be the most cost effective for

Mr. Frost because it minimizes the amount of people involved in the distribution. A Mr.

Frost employee will deliver the product.

Pricing Policy

Mr. Frost will choose a market-based approach to its pricing policy. The ice cream will

be contracted 800.00 per tube, 30 ml cup and will have a discount if ordered.

Customers will be paying a higher value product price implying that the ice cream has

substantial value to warrant the price. Positioning Mr. Frost enables the business to

extract a premium price from the market that is similar to its competitors. The price in

the contracts with the target segment, and does not consider what the customers will do

with the product once they purchase the bulk quantity.

 ORGANIZATIONAL STRUCTURE

JUMOREN GILWANO
Proprietor

HEIZEL JANE JUTAR

Manager

SEHAM SAMANA ROSSELE CABE

Production Supervisor Distribution Supervisor
 CHAPTER V

BUDGETARY REQUIREMENTS

Mr. Frost
Income statement
     
Mr. Jumoren, Capital   500,000.00
Salaries 178,551  
Rent Expense 45,000  
Equipments 150,049  
Supplies 66,400  
Promotional Expenses 15,000  
Utilities 15,000.00  
Permits and licenses 5,000.00  
contigency(5%) 25,000  
     
Total 500,000 500,000

Compensation Package
The business will give the following compensation

package for its employees:  

Monthly
Position SSS Philhealth 3 month Annual Net
Wages
(PHP) (PHP) (PHP) compensation Pay
(PHP)
Sevice Crew 7,540.00 291 50 21,597.00 43,194.00
Sevice Crew 7,540.00 291 50 21,597.00 43,194.00
Sevice Crew
7,540.00 291 50 21,597.00 43,194.00
(operations)
Manager 15,000.00 310 50 43,920.00 87,840.00
supervisor(2) 12,000.00 310 50 69,840.00 139,680.00
TOTAL 49,620.00 ₱178,551.00 357,102.00
 Projected Income Statement
  Year 1 Year 2 Year 3 Year 4 Year 5
705,600.0 712,656.0 726,980.3
Total Revenue 0 0 9 817,852.93 920.084.55
338,400.0 341,784.0 348,653.8
Cost of Sales 0 0 6 352,140.40 355.661.80
367,200.0 370,872.0 378,326.5
Gross profit 0 0 3 465,712.54 564.422.75
Less:          
357,102.0 360,673.0 367,922.5
Salaries Expense 0 2 5 371,601.77 372,066.28
Utilities 60,000.00 60,600.00 61,818.06 62,436.24 63,060.60
Permits and
licenses 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00
180,000.0 180,000.0 180,000.0
Rent Expense 0 0 0 180,000.00 180,000.00
Advertisement
Expense 60,000.00 60,000.00 60,000.00 60,000.00 60,000.00
Earnings before 294,902.0 295,401.0 296,414.0
taxes 0 2 8 300,711.49 301,800.35
Less: income
taxes 88,470.60 88,620.31 88,924.22 90,213.45 90,540.11
206,431.4 206,780.7 207,489.8
Net Income 0 1 6 210,498.04 211.260.25

Return Of investment

Formula: Net Income/ Cost of Investment

Net Income : 206,431.40

Investment: 475,000.00

206,431.40
= 43.46%
475,000