2ND.

Semester 2021-2022

Strategic Plan for Grace’s Cuisine

“Blueberry Cheesecake”

(IMAGE)
A plan for the Partial fulfilment of the requirements in Strategic Management

Submitted by:

Submitted to:

Date(Month & Year only)

TABLE OF CONTENTS
PAGE

1. Executive Summary 1 2. Situation Analysis 2 2.1 Market summary 2

2.1.1. Market Demographics, Geographics, Psychographics 2-3 2.2.

SWOT Analysis 3 2.2.1. Strengths 3 2.2.2. Weaknesses 4 2.2.3. Opportunities 4

2.2.4. Threats 4 2.3. Competition - direct and indirect competitors 4-5 3.

Objectives 5 3.1. Marketing objectives (Sales Volume, Price, Distribution,

Marketing 5 Communications)

3.2. Financial objectives (Peso Sales, Profit) 5 4. Strategic Analysis Market 6

4.1 Target market 6 4.2 Positioning 6 4.3 Marketing Programs 7 4.3.1.

Product/Brand 7
 4.3.1.1. Source of Raw Materials 7
4.3.1.2. Quality Control and Food Safety 7-8

4.3.1.3. Tools and Equipment 8

4.3.1.4. Physical Feature and Production Process 9-10
4.3.1.5. Brand 10

4.3.1.6. Packaging 11
4.3.1.7. Labelling 11

4.3.2. Price/Value 11 4.3.2.1. Pricing Objectives 12

4.3.2.2. Pricing Method/s 12

4.3.2.3. Pricing Strategy 12-13 4.3.3. Distribution/Value Chain 13

4.3.3.1. Channel 13

4.3.3.2. Value/Supply Chain 13-14 4.3.3.2. Place 14

4.3.4. Marketing Communications 15 4.3.4.1. Advertising 15

4.3.4.2. Personal Selling 15

4.3.4.3. Sales Promotion 16

4.3.4.4. Direct Marketing 16

4.3.4.5. Word-of -Mouth 16

5. Financials 16-17 5.1 . Sales Forecast 17-18 5.2 . Projected Income Statements

19-21

6. Controls 21 6.1. Implementation 21-23 6.2. Contingency Plans 23-25

1. Executive Summary

These days, cake is customary on every occasion, from the simple one to the
most special events. It gives happiness to the people and may the most important thing
in uniting those glitzy events. Blueberry cheesecake’s downside is being pricey
compare to typical cakes offered in the market, that’s why Grace Cuisine’s come up with
the idea of producing its own blueberry cheesecake catering local consumers with a
reasonable price without sacrificing the quality of the product.

Grace Cuisine’ Blueberry cheesecake is a home-based business focuses on

local markets, meeting the demand of the regular customer and walk-in customers
offering an affordable price at its best quality. It will be located on San Ildefonso
municipality of Magalang in Pampanga targeting middle- to upper-income earners,
aging from 18-65 years and those customers who are willing to avail the product and
with those with an appreciation for delicious desserts in a pre-order basis. To ensure the
quality of the product, cleanliness and proper sanitation must observe and make sure
that all the raw materials needed are always fresh and readily available.

The marketing strategy will be education of the consumer and subsequent word
of-mouth. Customers will be reached through social media platforms like Facebook,
Instagram, Twitter, and special holiday promotions if necessary.

GC’s blueberry cheesecake is expected to yield a net income of P187,860.00 in

the first year of operation with a corresponding 606 quantity of 8” blueberry cheesecake.
As cost of goods also rise over time, net income is projected to grow over the year due
to sales growth as quantity produced and selling price boost up. To achieve its
objectives, a well-designed marketing strategy is provided and accomplish with a robust
implementation and continuous assessment of the design strategy.

The business operation will be closely monitored and regularly evaluate if the
objectives are being achieve, customer review, market share comparison and using the
financial analysis. Assessing if the marketing strategies are effective in the process and
formulating contingency plans that will support the business in case of disastrous
incidents arise.

1
2. Situation Analysis

Apart from the joy of the mind the customary in all our special occasions, it is of course
cakes that unite all those glitzy events. Nowadays cake is common not only on
birthdays, but on all occasions, people tend to celebrate. Since the pandemic, people
have learned to save and budget however, even the current situation cannot stop
people on celebrating special occasions without a cake in their table. Grace’s Cuisine
seeks to introduce a Blueberry Cheesecake that will cater local consumers with a
reasonable price without sacrificing the quality of the product.

2.1 Market Summary

Grace’s Cuisine is a home-based business focuses on local markets, meeting the

demand of the regular customer and walk-in customers offering an affordable price at
its best quality. It will be located on San Ildefonso municipality of Magalang in
Pampanga. To attract prospective customers, social media platforms like Facebook,
Instagram and Twitter will be useful in advertising the product.

2.1.1 Market Segmentation

Is the process of dividing a target market into smaller, more defined categories. It
segments customers and audiences into groups that share similar characteristics such
as demographics, interests, needs, or location.

Demographic segmentation

Is one of the most popular and commonly used types of market segmentation. It refers
to statistical data about a group of people. Blueberry Cheesecake from Grace’s Cuisine
will serve the customer from middle- to upper-income in Magalang, Pampanga and
nearby municipalities. It will target customers ages from 18-65 years old who are willing
to avail the product regardless of the gender.

Geographic Segmentation
2
Is the simplest type of market segmentation. It categorizes customers based on
geographic borders. The main focus will be the Local Residents consumers from the
Municipality of Magalang, Pampanga and neighboring place since Blueberry
Cheesecake from Grace’s Cuisine wants to establish a large regular customer base.

Psychographic Segmentation

A market segmentation technique where groups are formed according to

psychological traits that influence consumption habits drawn from people’s lifestyle and
preferences.
 ⮚ Comfort Individuals – these are white-collar workers who are motivated by
success yet miss homemade comfort foods.

⮚ The Parties Group or Celebrators - people celebrating special occasions. These

group orders in advance and will be targeted by word-of-mouth marketing and by
advertising widely.

2.2 SWOT Analysis

Is a toll for generating strategic options. By using it, you can Intelligently at how
you can best take advantage of opportunities open to you, at the same time that you
minimize the impact of weaknesses and protect yourself against threats. It helps you
consider how to use the external environment to your strategic advantage and so
identify some of the strategic options available to you.

❖ Strengths
⮚ Baking skills and ongoing baking training
⮚ Ensures freshly bake of the product
⮚ Competitive price and new marketing strategies
⮚ Offer free delivery and discount on large quantity purchases
⮚ Pre-order
❖ Weaknesses
⮚ Limited no. of customers
⮚ New in the market

3
⮚ New setup and one-man business

❖ Opportunities
⮚ Open for tie-up to nearby coffee shop/buffer restaurant– it can be offered to small
or starting coffee shop around the municipality of Magalang. Nowadays buffet
resto includes dessert such as cake in their menu, so there is a potential
partnership among them.

⮚ Product innovation – through growing market competition, GC need to

continuously innovate the product to stay in the market.
 ❖ Threats
⮚ Low prices of competitors
⮚ Raw materials price increase
⮚ Experience of competitors in the market
⮚ Supermarket also offers cakes
⮚ Natural calamity or disasters

2.3 Competition

Competition makes the business dig deep into the actual needs, wants, and demands of
the customers and makes it more interested in serving them better than other players.

2.3.1 Direct Competitors

⮚ Conti's Bakeshop and Restaurant - The home-based pastry business started by

sisters, Cecille, Carole, and Angie Conti in Parañaque in 2018 has been known
since then, selling their signature cakes. A branch that is located at Marquee
Mall, Angeles City.
⮚ A La Creme Café Bistro Cakeshop – Known cakeshop in Pampanga with one
branch in town proper of Magalang, an eminence in a vast variety of dishes and
desserts it caters – coffee, cakes, sandwiches, appetizers, salads, steaks,
chicken, pasta, seafood, and crepes.

4
2.3.2. Indirect Competitors

⮚ Carreon's Sweets & Pastries - located at San Nicolas 1 (Poblacion) Magalang,

Pampanga formerly known as Magalang Espesyal, was established by Lourdes
Sanchez Carreon in 1946 offering their famous goodies like pastillas de leche,
caramel and yema and other wide range of pastry products.

⮚ Cindy’s Bakery & Restaurant - is one of the fastest growing bakeshops in the
country, with various branches across Luzon. Offering delicious bread and food
products.

3. Objectives
 Grace’s Cuisine “Blueberry Cheesecake” aims to offer high quality homemade
cheesecake at a competitive price to meet the demand of middle to upper income
customers.

3.1 Marketing Objectives

a. To achieve at least 300 potential customers for the first month of the operation.
b. Selling price is @ Php 900.00
c. To sell 10 cakes for the first month with at least 80% markup from the production
cost and 30% increase on target customer for the succeeding months. d. To be
leading a reputable cake shop and competitive in the market. e. To produce a good
quality homemade cheesecake.
f. And eventually as the business grows/expand - to offer jobs locally.

3.2 Financial Objectives

a. To generate P 9,000.00 sales for the first month and at least P 4,000.00 profit.
b. To have 15% monthly growth on the 1st year of operation.

4. Marketing Strategy

5
The marketing strategy of Grace’s Cuisine Blueberry Cheesecake will focus on
offer a personal customer service to enhance customer satisfaction and will aim to
supply the best products on offer at a competitive price which is the key in maintaining
the local market share. In order to get long term relationship with the customer it will
also offer discount on the large purchase orders and for first time customers. The
marketing strategy will be education of the consumer and subsequent word-of-mouth.
Customers will be reached through social media platforms like Facebook, Instagram,
Twitter, and special holiday promotions if necessary.

4.1 Target Market

Blueberry Cheesecake from Grace’s Cuisine will serve the middle- to upper
income markets resides in Magalang, Pampanga by providing its products with
affordable prices and by rendering services that will put a smile on the faces of its
customers. Ages range from 18-65 years old regardless of their gender and ethnicity,
with an appreciation for delicious desserts.

4.2 Positioning

Refers to the place that a brand occupies in the minds of the customers and how
it is recognized from the products of the competitors and unique from the concept of
product perception. GC’s Blueberry Cheesecake position itself as a competent,
innovative and customer oriented. It will make no discrimination between its customers.

⮚ Price and Quality Positioning

GC’s Blueberry Cheesecake will offer superior quality homemade product at affordable
prices compared to other existing similar product. Keeping these goals in mind, choose
price which are competitive, that is not higher over competitors yet by not being
immensely below the market price. The business will still be able to receive possible
income in time. In order to ensure product quality, GC’s will emphasize cleanliness and
sanitation, use quality ingredients, and will always be sure all cheesecakes are properly
and freshly made.

4.3 Marketing Programs

6
These are set of controllable, tactical marketing tools that a company uses to
produce a desired response from its target market. It consists of everything that a
company can do to influence demand for its product. It is also a tool to help marketing
planning and execution. An effective marketing strategy combines the 4 Ps of the
marketing mix. It is designed to meet the company’s marketing objectives by providing
its customers with value. The 4 Ps of the marketing mix are related and combine to
establish the product’s position within its target markets.

4.3.1 Product/Brand

In order for GC’s Blueberry cheesecake to be success in business a product

quality is vital. And to guarantee a product quality, cleanliness must be observed and
proper sanitation as well, use only quality ingredients and will always make sure that all
cakes are properly and freshly made for every delivery. Innovations are also essential in
business growth. GC’s will start to offer a variety of option, like from small size of the
cake to a bigger one and putting some twist on the product. GC’s will also continually
work to develop and test new variant of Blueberry cheesecake to attract new customers.

4.3.1.1 Source of Raw Materials

All ingredients will be available at Angeles Pilipino store, a local market located at
San Nicolas Public Market near Puregold Angeles City and known supplier for all baking
materials. These ingredients are also available in some baking store in Magalang,
however if price is concern, Angeles Pilipino store offer much less cost on the
ingredients.

4.3.1.2 Quality Control and Food Safety

To ensure the quality and safety of the product, quality control must be observed.
To maintain its quality, cleanliness must be followed. Proper sanitation before and after
the production process must also be monitored. All ingredients shall pass quality control
check before proceeding in production process. Standard recipe and baking procedure
must be constant at all times to retain the taste and product quality.

7
⮚ Shelf life and Spoilage

The shelf life of a blueberry cheesecake is 24 hours up to 7 days or more if put at

cool temperature/chiller. Spoilage of the cheesecake is due to dairy product ingredients
used.

4.3.1.3 Tools and Equipment

1. Refrigerator / Chiller – the fundamental reason for having a refrigerator is

to keep food cold. Cold temperatures help food stay fresh longer. The
basic idea behind refrigeration is to slow down the activity of bacteria
(which all food contains) so that it takes longer for the bacteria to spoil the
food.

2. Hand / Stand Mixer – used to beat, whip, and combine ingredients, all
requiring a smooth functioning set of blades that turn easily and
 consistently during the mixing process.

3. Mixing Bowl – used for mixing of ingredients.

4. Baking Pan – will use non-stick spring pan detachable bottom baking tray

5. Measuring Tools – these are mandatory since it is how you measure all
your ingredients, dry and liquid. Baking is a science, and it requires all the
precision you would expect when doing a chemical experiment. Your
ingredient measurements have to be precise to get the chemical reactions
you need and to score that perfect, consistent result every time

6. Sifter / Strainer - used to add air to the dry ingredient in order to make it
lighter and more uniform in texture resulting in improving the baking or
food preparation results.

8
4.3.1.4 Physical Feature and Production Process

A modern cheesecake is not usually classified as an actual cake, it can be

bake or unbaked. People who classify it as a torte point to the presence of many eggs,
which are the sole source of leavening, as a key factor. Others find compelling evidence
that it is a custard pie, based on the overall structure, with the separate crust, the soft
filling, and the absence of flour. While other sources identify it as a flan, or tart. The
preparation and/or baking time for the blueberry cheesecake is 45 minutes to 1 ½
hours.

“Blueberry Cheesecake Recipe”

Ingredients:
 ● For Crust

Graham cracker crust 1 pack

Unsalted butter ½ cup

● For Cream Filling

All-purpose cream 1 ½ cup

Cream cheese 1 cup

Gelatin powder 1 packet

Powder sugar 330 grams

● For Toppings

9
Blueberries/blueberry jam 100 grams

Procedures:

1. Combine graham
cracker crust and butter in a bowl. Mix well. Pat
mixture into the bottom of an 8 inch springform
pan and refrigerate for 20 mins. Or while
preparing for the cream filling.

2. Beat the cream cheese

in a mixing bowl with hand or electric mixer until
light and fluffy. Slowly beat the all-purpose cream
until fully incorporate.
 3. Sift the powder sugar first to remove the lumps then add on the
mixture.

4. Mix well until fully incorporate.

5. On a separate cup dissolve the gelatin powder with ¼ cup of tap

water. Then add to the mixture. Gelatin is used as thickening
agent.

6. Pour mixture into crumb-lined pan and refrigerate for 45 mins to 1

hour.

7. Then remove cake from pan by loosening edges of the

springform pan. Place the blueberries/jam on top of cake to
glaze. Chill for 10 minutes or until ready to serve.

4.3.1.5 Brand

GC’s blueberry cheesecake has already established its brand and reputation
particularly in Balitucan, Magalang province of Pampanga. As the business aim to grow,
they will introduce a variety of option to customer, from the cake size and offer product

10
with some twist. And it will continue to innovate and develop the product to create
customer’s loyalty and fulfill the changing choice of consumer’s experience.

4.3.1.6 Packaging

Packaging design is as essential as the brand

itself. It protects the items from spoilage or damage during
the process of transporting. The product packaging design
acts a very important role in branding an item in the retail
environment. One thing that should be noted is that the
‘catchier’ the design is, the more audiences it will attract. A
good packaging will also enable to differentiate the products from your competitors.
GCBC will use cardboard material box, that can be re-use, recyclable, and
biodegradable – making the business green and safe.

4.3.1.7 Labeling

A label provides complete information regarding the product. It is easier to

identify a particular product among many with the help of labeling. When a product has
different qualities, labeling helps to find out which pack contains what type of quality and
to promote sales. Sometimes a consumer gets encouraged to buy a product simply due
to attractive label. Nowadays labeling is used as an effective sales promoting tool.

GC’s labeled the blueberry cheesecake per package to ensure that the
consumers are informed of the important details of the product/brand such as:

▪ Name and Logo of the Product

▪ Address

▪ Contact Number

▪ Shelf Life

11
4.3.2 Price / Value

Pricing the products can be challenging. Set prices too high, and you miss
out on valuable sales. Set them too low, and you miss out on valuable revenue. Price is
the value that is put to a product or service. A pricing strategy considers segments,
ability to pay, market conditions, competitor actions, trade margins and input costs,
amongst others.

4.3.2.1 Pricing Objectives

GC’s will offer superior quality homemade products at affordable prices

and competitive with the industry. A reasonable price that will result to profit without
sacrificing the quality of the product, and both consumer and seller will benefit. This will
help to stay in business with prices that are not high over competitors. By not being
immensely below the market price, the business will still be able to receive as much
possible income while remaining competitive.

4.3.2.2 Pricing Method/s

Reasonable pricing of Grace’s Cuisine Blueberry Cheesecake is shown below on table.

4.3.2.3 Pricing Strategy

12
The pricing strategy that it will use is the most basic strategy, the Cost plus
pricing also called markup pricing. With this cost-plus pricing, first add the direct
material cost, the direct labor cost, and overhead to determine what is the total costs of
the product to offer, in this case the blueberry cheesecake. A markup percentage is add
up to the total cost to know the selling price. This markup percentage is profit. Hence,
there is a need to start out with a strong and precise understanding of all the business'
costs and where those costs are coming from.

4.3.3 Distribution/Value Chain

A distribution channel is a path by which all goods must travel to arrive at the
intended consumer. Conversely, it also describes the pathway payments make from the
end consumer to the original vendor. Distribution channels can be short or long and
depend on the number of intermediaries required to deliver a product. Distribution
channels can also include wholesalers, retailers, distributors, and even the Internet.
Channels are classified as direct and indirect. A direct channel lets the consumer to buy
goods from the manufacturer while an indirect channel allows the consumer to buy the
goods from a wholesaler or retailer.
 A value chain on the other hand, is the system through which an organization
acquires raw material, produces products, and delivers the products and services to its
customers. It helps increase the efficiency of logistics service by reducing inventory and
moving goods efficiently from producers to the ultimate users.

4.3.3.1 Channel

In the case of Grace’s Cuisine, the channel will be use is direct distribution
channel since it is just starting in the business and using direct channel could mean
lower costs for consumers because they are buying directly from the seller/producer. It
will not make use of any intermediaries. The product will be sold and delivered directly
to the end consumer.

4.3.3.2 Value/Supply Chain

13
The internet is an extremely efficient method of expanding a business.
Through online publicity. The product becomes accessible to much a wide range of
consumers, which is the first step of the business - to market its product. GC’s will be
dealing with pre-order. After they market the product and accept orders. Purchasing of
raw materials begin. Although they can keep stock of the ingredients so it will be
available anytime, however freshness of all the ingredients is very important in creating
a quality product. Production process will take place once all ingredients are complete.

Preparation of tools and equipment are needed during the production and the
packaging materials must be ready to where the finished product will be put. Ensuring
the quality of the product will be the main concern of the business. From the raw
materials up until to the finished product, the safety and quality of its product must be
closely monitored. Delivery takes place after the production process is done. The final
chain will be the consumption of the product.

4.3.3.3 Place
 Grace’s Cuisine is located at
Purok 5, Barangay Balitucan, Magalang
Pampanga. The place is not accessible to
public utility vehicles and only by tricycles
you will reach the area, that is why internet
(using social media platforms) is an
extremely efficient way to market the product
to a wider range of customers. They can
develop or create a page on which customer

14
can place their order. Since it is near school, it
can also help establish customers through
students and teachers in the place.

4.3.4 Marketing Communications

Refers to the means adopted by the companies to convey messages about the
products and the brands they sell, either directly or indirectly to the customers with the
intention to persuade them to purchase. The seller uses the tools of marketing
communication to build the brand awareness among the potential customers, which
means some image of the brand gets created in their minds and the product has
already position in them, having the uniqueness of it, that help them to make the
purchase decision.

4.3.4.1 Advertising

Advertising is the attempt to influence the buying behavior of customers

with a persuasive selling message about products. The most common and fastest way
is via online advertising, wherein they are using social networks as Facebook,
Instagram, Twitter, YouTube and more. Through these social networks, Grace’s Cuisine
will create a page/s in FB and Instagram where products will be posted with creative
designed banners and logos with all the info about the product, that can attract and
reach a wide range of potential consumers. This will be monitored and updated every
now and then. They can also make a vlog about the product and posted it via FB, Insta
and YouTube, that many viewers can watch, react, and give comment on the product
which is common nowadays. GC will also join groups of online selling and post the
products online to gain more market. Internet is the main tool to be use because if not
all, majority of the target customers use online market in buying products.

4.3.4.2 Personal Selling

Grace’s Cuisine promote the product through the attitude, appearance,

and specialist product knowledge. Since pandemic is still around, face-to-face selling is

15
extremely limited due to health protocol. Hence, personal selling can be done with
family, relatives, and friends within the locality by encouraging them to try the product
and offering free taste is good strategy. Through them they can spread the news
regarding the product. It can also be done during delivery and meet-up with the existing
customers since GC does not only offer blueberry cheesecake, it caters also other
variety of cakes.

4.3.4.3 Sale Promotion

Sales promotion is a part of the promotional mix where the business uses
many short-term customer-oriented strategies to stimulate the demand for its product by
making it look more attractive and/or worthy and to boost sales. In this case, GC will
offer discount on the large purchase orders and for the first-time customer. And will offer
free delivery within Magalang but with a minimum order of 4 blueberry cheesecakes.
And it will also offer take-away freebies such as free 5 cupcakes for every 4 blueberry
cheesecakes order and another one is to get one small cake for every 10-quantity order.

4.3.4.4 Direct Marketing

Direct marketing allows to promote the product directly to the target audience
and measure results quickly. GC will be using email by sending an offer,
announcement, and reminder to an individual customer. Using brochure or flyers is
another way in reaching potential customer with creative design including all the
information with a sale coupon which may attract the customers to buy. It will use online
adverts reaching a wide range of market. Phone calls/text messaging will be to promote
the product and might persuade the potential customer to try the product.

4.3.4.5 Word-of-Mouth

Word of mouth is a free form of advertisement or promotion and it is all about creating a
buzz. GC will encourage the customers to share their experiences in buying the product
and can leave reviews and feedback on pages created in FB, Instagram and Tweeter
tagging the name of the business. GC shall deliver the products and give services at its
best quality to be able stay in the game and gain positive review.

16
5. Financials

Financial projections use present or projected financial data to calculate the

business’ future income and expenses. Often include different setups to see how
changes to one aspect of the finances (such as higher sales or lower operating
expenses) might affect the business’ profitability. These can help in setting goals and
stay on track. In this section, it will illustrate the sales forecast and projected revenue
which are also part of the pillar of the business. This will assess the sales growth of
GC’s Blueberry Cheesecake and will be an indication if the business is earning profit
enough to continue/expand the business and if possible, to add product line.

5.1 Sales Forecast

Sales forecasting is the process of assessing future revenue by calculating the amount
of product or services will sell in month or year. It is projected measure of how a market
will react to a business's efforts. This also adds significance in the business that may
improve decision-making about the future and could use as benchmarks in assessing
trends in the future. Sales forecasting help the business to manage its workforce, cash
flow, and resources. Below will show the projected sales of quantity produced of
blueberry cheesecake.

17
Note that the quantity produced on the first month is the same as mentioned in
the marketing objectives which is 10 cakes and projected to increase at 30% on the
succeeding months. And the selling price is indicted in Table 1 as the pricing method.
The total sales of Php9,000.00 for the first month is the same with the targeted quantity
produced on the 1st month.
 18
Table 3-4-5 illustrate projected sales for 3 fiscal year (2021-2023). It was noted
that Table 1 used 15% increase in selling price over 3 years. On the other hand, Table 2
increased 15% growth on the quantity produced. Observed that there was no difference
in total sales for Table 1 and 2 (actual difference is due to rounding off only) in year 2.
Hence, 15% growth on sales either on selling price or quantity produced will not affect
the total sales in Year 2 for Table 1 and 2, and slightly change happened in Year 3.
However, the changes have no greater impact on the sales of the business.

Table 5 shows that 15% increase both in quantity produced and selling price in
the next 2 years yield more sales for the business. With these assumption, Table 5 is
the best projection to be used in planning and might generate much income in the future
with careful monitoring in the overall activity of the business.

5.2 Projected Income Statements

This is forecasting of how profitable a business will be in the future. The potential
time period could be a month, quarter, year or several years.

To get the projected net income, total cost of goods sold (COGS) must be
calculate first and other operating expense. Note that Table 6 and 6.1 will show the

computation of COGS within 3 years.

Table 6 above show that quantity produced increased by 15% in Y2 and Y3 as

well as COGS will increase 20% in Year 2 and Year 3 as projected.

19
From 606 quantity produce in Year 1 (as stated in Table 2) will increase by 15%
on the succeeding years. Due to economic crisis and price fluctuation, expect that direct
cost will rise overtime. Hence, cost of goods (per qty) will be affected, from P500.00 in
Year 1, it will project to increase by 20% in Year 2 (P600.00) and Year 3 (P720.00).
Forecasting all these figures, total COGS can be calculated by multiplying Quantity
Produced by Cost of Goods per Qty (Qty x Cost of goods). That is how the figures arrive

in Year 1-3.

Table (6.1) illustrate only the total COGS in Year 1-3, having quantity produced
constant over 3 year (606 in Y1-Y3) and cost of goods (per qty) from P500.00 in Y1 will
increase by 20% in Y2 @ P600.00 and Y3 @ P720.00. Multiplying the Quantity
Produced by Cost of Goods (per qty) will come up the total COGS (Y1-Y3).

In order for the business to cover the expense and stay in the game, it is better to
assume when cost of goods increase, quantity produced must project to increase as
well.

Below will illustrate the projected income statement in 3 Years, providing the
projected total Sales (Table 5) and total COGS (Table 6) in 3 years.

20
Table 5 and 6 already discussed on previous part, this will only serve as guide on

where the figure on Table 7 came from or how it arrived on those amounts.

Table 7 above shows the Projected Income in 3 Years including the projected
sales, cost of goods sold and other operating expense in producing blueberry
cheesecake. It was shown that the Sales* growth in Y1-Y3, for the reason that a 15%
increase annually on quantity produced and selling price (shown in Table 5). The total
COGS** is comprised of direct materials, direct labor and overhead associated in
making blueberry cheesecake and projected with 20% increase in cost annually –
detailed costing was shown in Table 1, while Table 6 shows the calculated projected
cost of goods sold presented in Projected Income Statements. Operating Expenses
includes supplies expense, transportation, telecommunication, internet, taxes, and
licenses (distributed), and other expenses that cannot be directly associated with the
product. It was calculated and estimated that the operating expense will be 10% of
Sales in Y1-Y3. Having all the figures, thus Net Income is generated as shown in Table
7 above.

6. Controls

It is true to say that planning gives direction and enable a business to achieve its
objectives, however with no control measures planning is of no mean, it is just an empty
practice without control. After marketing plan is done, controlling the marketing
performance is required. Control is essential in business; it is the process of assessing
and evaluating the outcomes of marketing strategies and plans and taking corrective
action to make sure that marketing objectives are attained. The business needs to

21
monitor and evaluate the marketing plans and strategies and adjust to meet the
changing market environment, market needs and market opportunities. This will also
guarantee performance progress by reducing gap between expected and actual results.
If the actual results are found to be different from the expected results, there is
requirement to correct and alter marketing plan to bring the results back to the desired
level.

6.1 Implementation

This is the phase that turns strategies and plans into actions in order to achieve
strategic objectives and goals. Implementing the strategic plan is as vital, or even more

crucial, than the strategy. In case of Grace’s Cuisine blueberry cheesecake, below will
be its implementation plan strategies that will closely monitored.

⮚ Setting a clear objective – starting with an objective statement is a great

way to know what process the business are trying to establish, how you
are going to go about it, and what results are trying to achieve. It should
clearly define the business process that needs to be updated and the
business reason why it needs to be done. For GC’s, its objective is aims to
offer high quality homemade cheesecake at a competitive price to meet
the demand of middle to upper income customers, from here GC will have
 to develop methods to determine which factors of the marketing plan work
and which prove to be unsuccessful. To offer high quality homemade
cheesecake at a competitive price, it will need to have product innovation.

⮚ Reliable resources are always available – making sure all

resources/materials needed in the production of blueberry cheesecake will
be available anytime not to cause delayed in delivering the products to

22
target customers. And it will have to secure suppliers that in case
materials are not available, it has another option to purchase the materials
needed.

⮚ Customer Survey – this will benefit the business. As consumer provide

opinion about the cheesecake and what to improve to meet the customer
demand. GCBC will include such survey in the social media platforms
such as Facebook, Instagram, and Twitter and on other pages created
online to receive customer feedback and increase customer satisfaction.
Customer surveys will expose the level of product quality and customer
service based on the opinions of consumers. These reviews will show the
business which aspects need improvement, and which are satisfactory.

⮚ Market Share Comparison – it will help GC find ways to improve ad

maximize success in producing blueberry cheesecake. It will also assess
its success based on sales and compare it to the success of its
competitors. If the success of the GC’s blueberry cheesecake shows to be
less than its competitors, it will have to analyze and compare the quality,
prices, and service of the same businesses. Doing so, will allow Grace
Cuisine to determine which of these factors are lacking in comparison to
its competitors. This will then show any necessary changes to be made in
order for GCBC to grow more profitable and surpass the competition.

⮚ Use of Financial Analysis – Reviewing the financial data of GC will help

to evaluate the business performance, its liquidity both short and long term
and its operating efficiency. By using the comparison and interpretation of
the financial data GC’s will gain insights into how the business is
 performing and identify the area to improve. GC’s will pay close attention
on the sales of the product it sells. It will also allow the business to monitor
the success of the product. The financial analysis will reveal if the product
is benefited in the business based on the income.

23
⮚ Always adapt to make adjustment – as GC begin the execution phase, it
will encounter process or strategies that is not working. GC is will always
willing to adapt and will not be afraid to make adjustment to the process
that will benefit the business in the long run. These adjustments will then
take hold if they are truly providing the value as stated in the marketing
objective. Starting implement the new process/es changes and GC will
continue working. Eventually it will get better as meet the customer
demand as it will go through the process implementation framework.

6.2 Contingency Plans

All businesses are vulnerable to some amount of risk. Contingency planning can
be effective in mitigating these risks. Contingency planning is the course of action
intended to help the business respond to an event that may or may not happen. It is
referred to as ‘Plan B’ for it can work as an alternative action if things do not go as
planned and helps to stay prepared for unforeseen events and minimize their impact. In
order to come up contingency plan, risks must be determined which include sources of
uncertainty or possibility and its effect to the business. Below are the risks associated
with GC’s blueberry cheesecake.

⮚ Competition/offering similar product in the same area – this will surely

affect the success and profitability of the business. GC’s come up with the
plan that, it will still offer the same product but will adjust the size and price
of the cheesecake depending on the customer’s ability to pay on the
product. It will also come up with the idea of doing a free taste but with a
limited quantity only just to have position in the market.

⮚ Irregularities in Prices (raw materials and other supplies needed) – exist for
any good that is seasonal and due to the economic situation as well. Price
 tends to increase or fluctuate extremely. GC’s will negotiate to certain
suppliers to buy the raw materials in bulk at flat wholesale rate which allow
to budget for the future expenses and able to project accurately the cost
and profit margins for the future. GC’s also come up

24
with plan to assess the price of the product in case of increase in direct
materials and operating expenses. It will review the selling price, the mark
up that will add on the product, ensuring that the business will not
encounter loss while facing price fluctuation.

⮚ Limited customers – this is struggle for all small and starting business
because of limited connection and the business/product is not yet
established. In this case, different ways or strategies in advertising must
be strictly implemented. When launching the product make sure that this
will be share across the social media channels that GC is active in. To
increase the customer, free newsletter will be offer. Free is somewhat that
everybody can afford. By offering free newsletter, this is the approach to
inform the potential customers that free information about the product is
willingly provide. And by giving good content, customers will know more
about the business/product. Another way to increase customer is by
requesting the existing customer and also a web visitor on the pages
created to complete a short survey about the product. People are
delighted to express themselves and often enjoy talking about their online
and offline experiences. Refreshing and useful content is one of the most
important aspects that pull in potential customers. Keeping the content
fresh by publishing a vlog that reports about what is latest about the
product.

⮚ Being new in the market is also a battle for GC’s, and to expand the
business and to be able to survive in the competition, GC’s will need to
attend seminars and training on how to improve and innovate the product
effectively. This will help GC to come up with new ideas that will support
the business in the long run.
 25
This is well done!
26