University of San Carlos

School of Business and Economics

BS Entrepreneurship

Concept Paper: Craft Pizza

In Partial Fulfillment of the Requirements for the Course

BEN 1203- Opportunity Seeking 2

Submitted by:

Bojo, Aaron Henri

Crodua, Lindonn Kerry
Lim, Lois Ira V.
Madarang, Keith Amirr
Villena, Anakin Julian

Submitted to:
Mr. Robert Visitacon

Submitted on:

May 28, 2021

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Table of Contents

Business Background

A. Industry Analysis

1. Industry Profile 2

1.1 Classification 2

1.2 Size 2

1.3 Competition 3

1.4 Key Success Factors 3

2. External Factor Analysis (i.e. PEST Analysis) 4

2.1 Political-Legal Aspect 4

2.2 Economic Aspect 4

2.3 Socio-cultural Aspect 5

2.4 Technological Aspect 5

3. Potential Competitors 5

B. Business Concepts 5

IV. Proposed Business Enterprise

A. Enterprise Name 6

B. Product/Service Name 6

C. Marketing Strategies 6

1) Segmentation, Targeting, and Positioning (STP) 6

2) Marketing Mix (4P's / 7P's) 7

V. Business Model Canvas (BMC)

A. Business Model Canvas Poster Display 8

B. Discussion of the Nine Building Blocks 8

VI. Conclusion 10

VII. References 10
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III. Business Background

A. Industry Analysis

1. Industry Profile

The proposed business falls under the Food Industry.

1.1 Classification

Craft Pizza is classified as a fast-food restaurant. Customers can consume the prepared
meals in the designated area, take them out, or have them delivered by the Craft Pizza, whether
they are served while sitting or serve themselves from a display of products. This involves
preparing and serving meals from motorized or non-powered carts for instant consumption.

1.2 Size

The final results of the 2016 Annual Survey of Philippine Business and Industry (ASPBI)
showed that a total of 30,889 establishments in the formal sector of the economy were engaged
in Accommodation and Food Service Activities. Industry-wise, restaurants led the sector with
7,218 establishments, accounting for 23.4 percent of the total number of establishments. This
was followed by cafeterias with 4,725 establishments (15.3%) and fast-food chains with 4,411
establishments (14.3%).

Figure 1 displays the percentage distribution of Accommodation and Food Service Activities
establishments by industry sub-class in 2016.
In 2016, the sector paid a total compensation of PHP74.2 billion, translating to an
average annual compensation of PHP152.8 thousand per employee. By industry sub-class,
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fast-food chains paid the highest compensation of PHP22.1 billion or 29.8 percent of the total.
Restaurants followed with PHP19.5 billion (26.3%). Hotels and motels ranked third with
PHP14.8 billion (20.0%).

Figure 2 shows the average annual compensation per employee of the top five industries
for all establishments of the sector in 2016.

1.3 Competition

The food service industry in the Philippines is growing at a phenomenal rate and
everyone wants a part of it. Philippine’s food industry market is highly dominated by
independent restaurants. However, chain restaurants are expected to grow at a faster pace.
Self-service restaurants in the Philippines are more appealing to the mass consumers for its rich
choices of dishes at competitive pricing among the chained restaurants. There are numerous
business establishments in Cebu City that provide nutritional food, as well as the Pizza sector.
Fortunately, neither of these restaurants could provide fast-food pizza concepts wherein
consumers may customize their own desired toppings and sauces even at an affordable price.
These include a solid concept, a decent value proposition, a desirable location, an effective
supply chain, strict cash and inventory management, and enough competitive advantages to
compete with the industry's established competitors.

1.4 Key Success Factors

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Success in the fast-food industry requires mastery of different key competitive factors.
Craft Pizza emphasizes on creating a strong brand, improving operational efficiency, increasing
speed and convenience. The keys to success in this business are:

● Delivering the customer value proposition.

● Marketing: promoting a new company, product, and delivery channels to a rural
community.
● Product quality and consistency.
● Pricing effectively with respect to the project quality and customer value
proposition.
● Family-oriented atmosphere with occasional nights of family entertainment.
● Management: products delivered on time, costs controlled, marketing budgets
managed. There is a temptation to fixate on growth at the expense of profits.
● Reporting and controls in place for inventory and financials.

2. External Factor Analysis (i.e. PEST Analysis)

2.1 Political-Legal Aspect

Governments across the world have expansive regulatory frameworks for every aspect of
the food industry. This includes the cleanliness of commercial kitchens, the standards for storing
and transporting produce, and even the requirements for laborers in the food business. Without a
doubt, this makes the food industry one of the most tightly-regulated industries of all. On the
plus side, this ensures that consumers aren’t exposed to poor quality nutrition, but the
complexities of regulation certainly take away from the margins of the food business.

The food industry has high standards for safety matters. In particular, there are scores of
rules in every country on how food should be transported, stored, and prepared including
directions on what temperatures various food types can reach, how they should be cleaned, and
so on. While this is indeed largely a Political issue, it becomes a Legal matter if any of these
regulations are ever breached. As such, those in the food business need to be extremely careful to
ensure that they stay within the bounds of these rules to prevent costly lawsuits.

2.2 Economic Aspect

Restaurants around the world have adopted menus which are healthier, including low
calorie options. There are other trends that have also affected the industry. Brands are more
focused on retaining the customers they attract. In a bid to achieve this they have made
everything more customer friendly, from their customer service to their menus. They have also
adopted new marketing strategies and channels.
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Increasing hospitality from the staff and more delivery options for the consumers have
brought them to the fast food industry in droves. The most popular fast food chains in the world
have focused their energies on improving their service and their healthy offerings as well as their
overall reputations.

2.3 Socio-cultural Aspect

Scientists know more about the relationship between food and our bodies than ever
before. There’s a clear relationship between the food we eat and our personal health, and
consumers are conscious of this. As a result, many individuals are looking for healthier ways to
fuel their bodies. This doesn’t necessarily have a positive or negative effect on the food industry,
but it means that businesses will have to adapt to stay relevant.

2.4 Technological Aspect

We’re seeing various types of automation more and more in the food industry. Perhaps
the best example is the use of self-checkout screens at fast food venues such as McDonalds, but
it’s not the only one. Just recently, social media platforms went crazy as viral footage of a hotel’s
robot cooking up omelettes began to spread. As we find more ways to use technology including
robots in the food industry, there will be less need for laborers. Overall, this is a good thing for
the industry, as it will allow businesses to improve profitability and reduce the likelihood of
human error.

With the On-going pandemic there has been a sudden boom of apps that deliver food to
your home apps such as Grab and Foodpanda and more or less a lot of people who prefer to stay
home and practice social distancing and quarantine order food from these apps so it is very
important to take this into account.

3. Potential Competitors

When it comes to this type of business it is bound to face competition in this very
competitive market. Competition ranging from restaurants all the way to fast food making pizza
these are the potential competitors when it comes to the pizza industry just to name a few of the
giants in the Pizza industry here in the Philippines we have Pizza Hut, Shakeys, Yellow Cab and
Albertos. These pizza companies are the potential competitors to face when opening up a pizza
restaurant.

B. Business Concepts

Restaurants here that serve pizza in the Philippines normally have a generalize menu of
unhealthy pizzas containing a huge amount of calories and other stuff that is bad and unhealthy
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for the body it gives the person a sort of guilty pleasure wherein after he/she consumes the pizza
they feel bad about it after knowing that they have ate a lot of calories which is why the business
we are proposing which is healthy versions of pizza containing less calories will be a game
changer here in the Philippines for the fact that no one is selling healthy pizzas and the market of
healthy pizzas is still very small compared to the normal pizza market which is why this business
has huge potential because in 2021 people are more inclined to healthier foods now it is sort of
the trend now which is why it is perfect to jump in this market. Which is why creating a healthy
pizza restaurant is very good.

IV. Proposed Business Enterprise

A. Enterprise Name

AKALI

B. Product/Service Name

The Product/ Service name is “Craft Pizza”

C. Marketing Strategies

1) Segmentation, Targeting, and Positioning (STP)

MAIN BASES OF SEGMENTATION

Geographic Demographic Behavioural Psychographic

Customers within the All kinds of Customers who are in Customers who want
city of Cebu customers that love a rush to order pizza an affordable and
pizza such as health at the same time healthy meal that
conscious having the option to suits their unique
individuals, students, choose their own taste
vegans, etc. specific pizza

TARGETING

Craft Pizza is suitable to any type of customers who are interested in pizza but the ones
that would be most interested in this type of business would be young adults and even kids.
Young adults specifically in their 20-30’s would most likely engage in the business. Due to the
fact that this kind of concept of making pizza makes it fun and unique. Group of young people
like college students or workers are most likely to dine in the area. The business offers a
convenient way to choose your own pizza at an affordable price. It also caters for people who are
looking for a healthy or vegan alternative.
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The focus of marketing to these types of customers are a priority. To achieve success, promoting
in social media, having social media presence, and word of mouth would help reach out to these
specific markets and at the same time advertise what the business offers.

POSITIONING

Craft Pizza offers a build-your-own concept which is relatively unique and different from
typical pizza restaurants. Customers have the option to choose the kind of pizza they specifically
want and the type of toppings in their pizza together with the focus of food quality of the
business. This expands the target market of the business, it does not limit itself to specific
markets. Craft Pizza also offers its fast service, usually by the time the customer is paying the bill
the pizza is already ready. It takes around 2-3 minutes to prepare the specific pizza of the
customer. This makes it convenient and saves time for the customer which is crucial. Despite it
being on the go type of business or delivery, customers can dine in the restaurant. The business
offers a great ambiance and picturesque interior design which is a great place for young adults to
hang out. Overall, this business is not the usual pizza restaurant present in Cebu, it is unique and
offers high quality products and services.

2) Marketing Mix (4P's / 7P's)

● Product

Craft Pizza offers a wide variety of pizzas and pastas made with fresh ingredients.
Customers are able to choose the kind of dough, sauce, cheese, and toppings of their
customized pizza. The ingredients being used in the pizza are of high quality and locally
bought. This provides customers a high quality pizza with an affordable price. The
customers have the option to go through the process of making their pizza at the counter
or they have the option to just fill a checklist of the pizza they want to order.

● Price

The price of the pizzas differ depending on the size and quantity of toppings.
Crafting your own pizza would cost around Php 300.00 - Php 450.00, the sizes and
portions of the food are generous which makes it worth it for the customers. The quality
of the ingredients being used are taken into consideration when pricing the products.

● Place

The pizza restaurant would be located in Cebu IT Park, Cebu City. This would be
a good and effective location due to the fact that it is accessible everywhere. Potential
customers in IT Park would be employees of businesses in IT Park, university students
who want to hang out and eat good food, vegans and anyone in general who are looking
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for a high quality and healthy pizza. Customers who may be in a rush can access the
restaurant in IT Park where many business establishments are present in the vicinity.

● Promotion

For the marketing strategy of the business, it would focus on digital marketing
and traditional marketing. Making a website, facebook page, and online advertisements
will significantly bring exposure to the business with minimal costs. Advertising coupons
and promos will also incentivize customers to dine or order in the restaurant. Traditional
marketing such as advertisements in radios, and making of posters or billboards would
assist in promoting the business.

V. Business Model Canvas (BMC)

A. Business Model Canvas Poster Display

B. Discussion of the Nine Building Blocks

1. Key Partners - Companies form alliances to improve their operations, decrease risk, or
obtain resources. Strategic alliances between noncompetitors, coopetition—strategic
alliances between competitors, joint ventures, and buyer-supplier agreements are the four
primary forms of partnerships.
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2. Key Activities - The vital tasks that a firm performs in order to prosper and run
successfully are referred to as key activities. Different organizations concentrate on
various tasks such as manufacturing, problem-solving, and platform/network.

3. Key Resources - To function, each firm needs resources, physical, financial, intellectual,
and/or human. These resources enable the firm to serve its clients with goods or services.

4. Customer Relationships - Companies must maintain customer connections in order to

gain and keep consumers and increase revenue. Strong customer connections may have a
big influence on the whole customer experience. Personal help, self-help, automated
service, user communities, and co creation are all examples of client interactions.

5. Cost Structure - All firms incur costs as a result of their operations, whether they are
fixed or variable. They may also encounter scale and scope economies. Companies
examine their cost structures in two ways: cost-driven, in which all expenses are lowered
wherever feasible, and value-driven, in which the emphasis is on higher value generation.

6. Revenue Streams - There are two sorts of income streams: one-time client revenue and
continuous payment income. Revenue pricing techniques range from fixed to dynamic
(e.g., predetermined prices depending on static factors). Asset sales, use fees,
subscription fees, licensing, brokerage fees, advertising, and temporarily selling the use
of a certain asset can all provide revenue streams.

7. Channels - Through communication, distribution, and sales, channels deliver the value
offered to customers. Companies can reach out to their consumer groups via a variety of
channels, both direct (e.g., through sales force and web sales) and indirectly, to create
awareness, enable purchase and delivery, give customer support, and support other
critical company tasks.

8. Customer Segments - Businesses cannot exist without consumers. Businesses must

identify and understand their consumers, and these consumers may be divided into
groups based on shared criteria.

9. Value Propositions - A corporation adds value to its clients by addressing a problem or

meeting a demand. When determining what to buy, shoppers prefer one choice over
another based on the value proposition. Customers may appreciate, among other things,
newness, performance, customisation, design, brand, pricing, cost reduction, risk
reduction, accessibility, and convenience.
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VI. Conclusion

In conclusion, Craft Pizza will be added to the pizza industry but in a unique way of
having pizza unlike the common way of eating it. It will dominate other competitors of the
market since it is different, healthy, and most importantly enjoyable. It will satisfy customers
since they are the ones who get to choose their ingredients, depending if they are health
conscious or they just want to have good classic cheesy pizza. We must always remember that
“to eat is a necessity, but to eat intelligently is an art.”

VII. References

Business Model Canvas Stewart Black-Donald Gardner-Jon Pierce-Richard Steers -

https://opentextbc.ca/organizationalbehavioropenstax/chapter/business-model-canvas/

19 Types of Restaurants: Complete guide for potential owners

https://www.google.com/url?q=https://getsling.com/blog/types-of-restaurants/&sa=D&source=ed
itors&ust=1622121033915000&usg=AOvVaw1LVIxw1t6LV5FSFFPu3p2a

2016 Annual Survey of Philippine Business and Industry (ASPBI) - Accommodation and Food
Service Activities Sector For All Establishments: Final Results
https://psa.gov.ph/content/2016-annual-survey-philippine-business-and-industry-aspbi-accommo
dation-and-food-service-0

PESTLE Analysis of the Food Industry

https://pestleanalysis.com/pestle-analysis-of-the-food-industry/

Types of Economic Factors That Can Affect the Fast Food Industry
https://smallbusiness.chron.com/types-economic-factors-can-affect-fast-food-industry-36923.htm
l

9 Building Blocks of the Business Model Canvas (Updated)

https://animasmarketing.com/9-building-blocks-business-model-canvas/