BUSINESS PLAN

MARKETING PLAN

1.1 THE PRODUCT

After the long deliberation of the proponents, the company comes up with an idea

of producing Special Hotcake Express. Special Hotcake Express is an innovated hotcake with

chocolate icing (form of syrup) above it. The Special Hotcake Express color is the usual

color of a typical hotcake which is yellow and is circular in shape. The product measurement

may vary on its price. The hotcake is composed of flour, which contains protein that is

important part for the human diet. It also contains margarine and in turn contains reduced

amount of saturated fats and increased amount of unsaturated oils, particularly

polyunsaturated oils. The chocolate syrup is made up of cocoa powder, condensed milk and

evap. The cocoa powder has a high food value, containing as much as 20 percent protein,

which is good for our diet, 40 percent carbohydrates, which provides your body with heat

and energy, 40 percent fats which is essential to our body. Eating this product will surely

satisfy the hunger of people and will provide them an affordable hotcake during their off

time. It is usually used or eaten during coldy days or during early cold morning. The hotcake

already exists in the market but the icing above it is new to the eyes of everyone.

1.2 COMPARISONS OF PRODUCTS WITH ITS COMPETITORS

There is an existing hotcake production in 5th street, MSU campus, Marawi City.

The product quite lacks on taste because it contains no other than flour and small amount of

sugar. But the proponent’s product says otherwise; it contains vanilla to make it aromatic

and has balanced amount of sugar and condensed milk. The existing product has no

chocolate syrup while the proponent’s product has. The proponent’s product will also have

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difference from other hotcakes in terms of appearance that makes it more attractive upon

serving the product to the costumer. Furthermore, the target market, knowing that they are

students, is offered with an affordable price for the hotcake and assured contentment of the

costumers to the product.

1.3 TARGET MARKET

The proponent’s target market is many which make them to have a strategy in

selling their products a lot easier. One of which is the group of students who are currently

studying in this institution; which is calculated more or less 10,700 students considering the

sum of total population of selected colleges and Senior High School.

MARKET SITUATION

SWOT ANALYSIS

This segment will introduce the strengths & weaknesses of the business and will

discuss opportunities and threats of the business.

Table 1.1 SWOT Analysis

Strengths Weaknesses

 The ingredients of the company’s  The company’s product is rampant

product can be easily made and prepared.
 The ingredients of the company’s
product can be easily purchased within
nearby stores. Thus, there is a minimal cost
for transportation costs.
 Each team members has an experience
in selling, cooking and making the product.
Each team members also is energetic and
hardworking enough.
 The company’s product is both healthy
enough around the campus. Hence, our
company at risk of not able to sell all of our
products.
 The ingredients of the company’s
product can be easily found and the product
can be copied.
 Prolong exposure to surrounding and
improper storage of the product might reduce
its quality.
 The product will use paper plates.

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and delicious because it contains Therefore, costumers might dispose the

carbohydrates, protein, calcium, sodium and packages improperly that leads to the
other elements which are essential for contribution to the pollution on environment.
human’s development.
 The company’s product is a good
substitute for the rice in our meals because
just like rice, the product contains
carbohydrates.
The location of the distribution of the
company’s product is convenient; therefore it
can be easily recognized and bought by our
customers.
Opportunities Threats

 The company’s business can be  There might be a stiff competition within

expanded throughout the campus and can be the market.
feasibly established outside the campus.  There might be a product that can
potentially compete with our product.
 The price of the ingredients of the
company’s product has the chance to increase
during the operation.

PEST Analysis

At this parcel, the table will introduce you on the Political, Economic, Social and

Technological roles.

Table 1.2 PEST Analysis

Political Economic
 Government is not involve in the  The supply of materials are available in
business the campus
 The business is not intervene or The students who are the target market has the
involve with politics capability to buy the product.
Social/Cultural Technological
 Students are curious of the new  The equipment needed are available to the
product offered to them firm
 The product is suitable to the  The equipment and materials are
culture of the place inexpensive

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1.4 FORECASTED MONTHLY DEMAND

The following table is the forecasted monthly demand of the company’s product based on

the answers of our respondents from the conducted survey. (See Appendix C for

computation):

Table 1.3 Forecasted Monthly Demand

December 133,972
January 200,958
February 267,944
March 267,944
April 267,944
May 133,972

The following are the statements which strongly support the company’s presumptions for

the forecasted total monthly demand:

 Derived through getting the 50% of the total monthly demand, on the month of

December, it is the company’s grand opening. The company’s product is new to the

eyes of the target market and newly launched but it is the end of semester. Hence,

students will just spend their first two weeks at the campus and spend their time for

their families to the remaining weeks.

 On the month of January, this will be time that students will come back at school. At

first week of the month, it is the continuation of semestral break of the students and

the second week of the month will be enrolment. Therefore, we expect 75% of the

total monthly demand since the second semester will start at third week of the month.

 On the month of hearts, couples much likely to go out on a date share each other’s

time with sweet foods. Because of this, our product can freely meet its total demand.

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 On the month of March, the product considers to meet its demand because the

product has also gained its popularity among the target market.

 On the month of April, this will be the time that students will have their sleepless

night because the next month will be the end of semester. Hence, students have the

desire to satisfy their appetency on eating our product.

 Derived through getting the 50% of the total monthly demand, the month of May will

be the end of Semester. Thus, students will just stay at the campus for the first two

weeks.

1.5 MARKET SHARE

The following table illustrates the forecasted market shares for the Special Hotcake Express.

Table 1.4 Forecasted Market Share

Month Market Share

December 2%
January 2.5%
February 3%
March 3%
April 3%
May 2%

Considering the indirect competitors, the company’s initial market share in establishing

the market is 2% of the forecasted monthly demand 133,972. The monthly market shares are

supported by the following presumptions.

 For the first month of operation, considering that it is the proponent’s grand opening,

the forecasted market share is 2% because the proponent’s product is just new to the

eyes of everyone.

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 For the next month, the market share is 2.5% for the product is just gaining its

popularity.

 For the month of February, the market share has increased from 2% to 3% because

the product has already attracted many costumers.

 For the next two months, the month of March and April, the product is consistently

growing; therefore the market share is also consistent to 3%.

 On the month of May, there will be 2% market for each partners because the monthly

demand is going low.

1.6 FORECASTED TOTAL MONTHLY DEMAND

Table 1.5 Forecasted Total Monthly Demand

MONTH Forecasted Monthly Market Share Forecasted Selling Price Sales

Demand Sales Volume Forecast
December 135,390 2% 2,708 8.00 21,662
January 203,085 2.5% 5,077 8.00 40,617
February 270,780 3% 8,123 8.00 64,987

March 270,780 3% 8,123 8.00 64,987

April 270,780 3% 8,123 8.00 64,987

May 135,390 2% 2,708 8.00 21,662

1.7 PRICING STRATEGY

The price of the product is aimed using the cost-plus pricing method. The derivation is

shown below. (75 units of quantity produced per production)

Production Cost: P310.00

Packaging & Cooking Material Cost: P92.00

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P402.00 – FINAL TOTAL COST

Cost per Unit: P5.36

Mark-up: 50%

Selling Price: P8.00

PROFIT MARGIN: 50% of the Final Total Cost

P402.00 x 50% = P201.00

COST-PLUS METHOD: P402.00 + P201.00= P603.00

PRICE: 75 units of product

P603.00 ÷ 75 = P8.04 – the price of each Hotcake

PRICING STRATEGY:

If a piece of hotcake costs P8, then we can offer 2 pieces of hotcake for P15.

1.8 PROMOTIONAL STRATEGY

Advertisements:

PERSONAL SELLING – this promotional is used to promote the product by selling the

product personally among the target market. Some of us will endorse the product to them

and convince them to buy.

POSTERS – this promotional tool will surely help in selling our product. By using this

tool, the product assumes to be acknowledged by the target market in just taking a look

at the posted papers behind the road. (See Appendix D for sample posters)

FLYERS – this promotional tool creates a vast acknowledgement of the target market

on the product because they can be advertised by just having the flyer and be encouraged

to by. (See Appendix D for sample posters)

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SOCIAL NETWORK – this promotional tool lets the costumer see the product in

individual’s facebook, Instagram & other networking sites.

TEXT RELAY – this promotional tool allows the target market to know what the

product all about, why the product is manufactured, where it can be purchased and when

is the grand launching and display of the product.

Sales Promotion:

FREE TASTING – this promotion allows our first 5 costumers to taste our product and

encouraged again to buy.

TEAR ME UP – this promotion will able the market to have the paper where the
product’s logo is displayed. There will be three logos at the paper. Each logo
corresponds to the number of unclaimed product. Upon claiming the product, the first
logo will be cut and you will be left at 2 more products. When all the logo is being cut,
the costumer is encouraged to buy again.

Table 1.6 Sales Expenses

Promotional Tool Amount

A. Advertisements
Poster P50.00
Flyers P50.00
Text Relay P15.00
Social Network FREE
B. Sales Promotion
Free Tasting P40.00
Tear Me Up P30.00
GRAND TOTAL: P 185.00

1.9 PLACE OF DISTRIBUTION STRATEGIES

 Peace Plaza has been one of the most populous areas around the campus. Every early

in the morning, people residing in the university tend to jog at MSU Grandstand.

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Hence, it is our chance to sell our product easier at the said area for our product is

definitely good during morning time. Moreover, students who are walking at the

covered court could be tempted to buy our product when they saw our food carts

displayed there.

 Another place which could be our distribution will be at Science Lecture Hall since

the function hall has regularly been used during competitions. On the month of

December, there will be a competition which will be happened at the said hall.

Therefore, it is our chance to meet our total monthly demand.

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