Business Plan

Submitted by:

Marvin M. Robles

March 2020
 TABLE OF CONTENTS

I. Executive Summary
II. Company Profile
III. Product and Services
IV. Market Analysis
 SWOT analysis
 Competitors’ Profile
 Target market and Segmentation
 Marketing 4Ps
V. Organization and Management
 Organizational Chart
 Duties and Responsibilities
 Company Policies in Hiring and Termination
 Compensation and Benefits
VI. Production and Operations
 Production process
 Store layout
 Hours of Operations
 Risk Analysis
VII. Financial Plan
 Pro-forma Balance sheet
 Pro-forma Income Statement
 Pro-forma Cashflow

2
PART I. Executive Summary

Background

The goal of this marketing plan is to outline the strategies, tactics, and
programs that will make the sales goals outlined in the NieTea Café. NieTea Café
is not focusing on a bubble tea alone, because some of its drinks came with
bubbles which makes our tea unique. NieTea Café vision is to cultivate a modern
drinking culture rather than limit to the bubble tea alone so, it is also come with
variety types of tea base. That must be the answer to an increasing demand of
milk tea nowadays.

Milk tea is the most popular beverage in the Philippines. With

a franchise fee worth P56,000 and a total investment worth only P299,000, you
can have a milk tea brand that has a great social media presence, tried and
tested operations, and overall management. The majority of our
customers target are young people around 19 to 24 years old. This means that
our product and services will have to be focused on the wants, needs and
demands of this group of people. Most of the population are students.

Why milk tea is so popular? It is because of its unique taste, variety and
aesthetic. The sweet taste of the tea paired with the chewy tapioca balls make up
the unique element that boba provides. Drinks like iced coffee or juice have the
same constant texture but with boba, the pearls offer a sort of “break” from the
same boring consistency. There really is no other drink like this. Let’s say a shop
has 30 flavors and 9 different toppings to choose from. You can have 300
different drinks. That’s enough to have a different drink daily for almost a year!
It’s perfect for adventurous people. To be completely honest, a lot of people get
boba simply for the aesthetic appeal (for Instagram, Facebook, Twitter etc.)

Since our milk tea business has just started, we only have 3 flavors:
Okinawa, Classic Series and Cream cheese Series. We will make milk teas in our
house and we will deliver it to our customer’s place. It is because of the
pandemic. We have our Facebook Page to sell our product and we will be
contacted through our page if they want to order.

Milk tea shops are everywhere, it means we have a lot of competitors. For
us it didn’t matter because we focus on the demand and popularity of our
product. The only difference with other businesses is the taste. We’re confident
that our milk tea will be popular someday.

When a milk tea drinker loves and enjoys buying from your stall or shop,
they are likely to be your regular customers. In the milk tea business, it's easy to
build a customer base especially if you have great products and services offered.
Adding milk to this beverage makes it not just more flavorful but advantageous,
as well. The free radicals and antioxidants in tea are what make them worthier to
drink. These are the reasons why you should drink milk tea: Provides strength for
the body, a great source of energy, fairer and softer skin, reduces stress,
functions as an anti-inflammatory, effective for weight loss, stress-resistant,
mood enhancer, creates a consistently positive feeling and good for the heart.

Our price range is P60 – P99 only and our target market is located in
Valenzuela City which are Gen Zs and families that are at home or staying at
home. Our price is cheap because we just started the business and we only have
few flavors to offer but if our business grows, we will innovate and expand our
business to serve more customers. Our goal is to be one of the most popular and
successful milk tea shops in the Philippines.
 PART II. Company Profile

NieTea Café is a milk tea business in Valenzuela City. The brand name
comes from my aunt’s call sign with her husband which is “Nie” and added the
word Tea since it is a milk tea business. The logo is very simple, we have inserted
the brand name and a sample image of a milk tea. Our tagline is “Happiness in
every cup” which represents the feeling and taste if you try our product. Our goal
is to have a 5 physical branches in 3 years and to be known and popular in the
market. It is quite simple because it is only a small business. As of now, we will
use social media to sell our products and to communicate with our customers.

We encourage a culture of safety and safe work practices. Since it is a

small business, we will definitely be more focused to achieve our goal and we will
continually be seeking improvements in our products. We are determined to
succeed and draw inspiration from challenges. NieTea Café provides quality
goods and innovative traits which means our product can be improved.

We will create a Facebook page and you can contact us there by messaging
our page. Just type NieTea Café and you will see our products and promotions
there.

PART III. Product and Services

 Our main product is milk tea with 3 different flavors: Classic Series, Cream
Cheese Series and Okinawa. It is good during hot days for refreshing. Aside from
milk tea, we decided to add some other stuff like French Fries and Takoyaki within
2-3 months. It is only a plan throughout the business process because since
we’re only started the business, we need to focus first the process of creating
milk tea and on how we will innovate it.

In services, we apply the hygienic and best quality services. In addition, we

will have a delivery service for bulk buyers. Since we don’t have physical
store/shop, we are making it at home. When the customer’s place is out of
Valenzuela City, we will use “Lalamove” to deliver it to them and when the
customer’s place is around Valenzuela City, we’re the one who will be delivering
to them.
PART IV. Market Analysis
 SWOT analysis
STRENGTHS
 Fresh and healthy.
 Many different flavors.
 Convenient and fast.
 Cheaper than other café or
bubble tea shops.
 DIY services.
 Long business hours.
 Location
 Competitive pricing.
 Promotional offer.
OPPORTUNITIES
 Provide mass packages sale
different flavors solid tea
powder.
 New product introductions.
 Brand is attractive to global
partners.
 Offer bundles.
 Offer food/snacks.
WEAKNESSES
 Many competitors.
 More people in downtown area.
 High rental.
 Not be able to provide to
everyone’s eating or allergy
concerns.
 Lack of manpower.
 No physical store/shop.
 No formal training.
THREATS
 Many competitors.
 Branding don’t have many loyal
customers.
 Nearby competitors with
physical stores/shop that Gen Z
customer can stand by.
 Competitors’ Profile

Competitor Zhao Cha InfiniTea Tempteation

Valenzuela

Brown Sugar Strawberry Oreo Classic Milk Tea,

Series, Frappe, Dark Fruit Tea, Fruit Tea
Offerings Cheesecake Chocolate w/ Yakult, Soda
Series, Chocolate Raspberry Frappe, Pops, Taro, Matcha
Series, Fruit Soda, White Chocolate
Fruit Tea Raspberry Frappe,
Okinawa, Oreo

Service Prices No employee/s Starts at P750 Starts at P500

Retail Prices 88% markup 100% markup 75% markup

Location No traffic, Visible Moderate-High Moderate traffic,

traffic, Visible Not visible

Expertise 6 years 15 years 7 years

Service Closes 9PM Closes 9PM 12PM – 9PM

Turnover High High Low

6 active chairs (3 8 active chairs,

Capacity low chairs, 3 high 2 tables 7 active chairs
chairs)

Client Base Over 200 Over 2000 Over 200

  Target market and Segmentation

TARGET MARKET:

Basically, different market segments or groups of customers with similar

characteristics and needs will respond to different types of marketing strategies,
so it is very important to be sure to organize the promotional techniques toward
the segments target. Customers will be target based on their income,
demographic or psychographic, due to this allows NieTea Café to adjust the
pricing according to their customers’ non-essential income levels, habits and
preferences of customers.

Besides, these categories of groups who is mostly extroverts and have

active social lives needs a drink to refresh their minds and feelings. This would
give higher purchasing power to them to enjoy a cup of well brewed NieTea Café
drink. In conclusion, it is also possible to develop promotional strategies that
target one or more the following segments and the products of NieTea Café were
actually suite to the taste and preference of teenagers, students, young adults
and families.

Around Ugong, Valenzuela City is the place were we focus first since it is a
small business. Basically, Gen Z and families inside their home are our target
market because it is so popular to them.
 MARKET SEGMENTATION: Dividing the market into 4 bases:

Demographic Geographic Behavioral Psychographic

 19-24 years  Philippines  Good for  To quench

old the health, thirst
 Valenzuela price, taste
 Both male City  The taste
and female  Cheap and Price
 English or
P15,000 To boost  Delivery
 Filipino 
their
 Those who
 Lower and  Hot energy
can afford
Higher
and enjoy
Levels  136.14/ha  Any
our milk tea
occasion
 Food  8,000  A little bit
(French  Heavy, vapid and
Fries &  Ugong Medium few sizes
Takoyaki) and Light and flavors
users
 Mostly  They will
students  Non-users, buy again
Prospects, to see our
 Jobless or First-time improve-
not buyers, ment.
Regular
 Single or users,
Married Defectors

 Teenagers
and Adults

 Individual
customers
 Marketing Mix

PRODUCT

NieTea Café provides high quality, hand-made and healthy beverage

called the Bubble Tea. It is an innovative and refreshing drink with a base
of tea with juice or milk. Besides, NieTea Café also includes different
varieties of teas and flavors. This allows our business to encourage
customers to search for their favorite flavor and also satisfies each
consumer needs. Not only that, NieTea Café offered healthy bubble drinks
with the mix of nutritional sachet such as collagen, antioxidants, protein
and energy.

PRICE

The price for every product offered by NieTea Café was around the
range of P60 – P90. The price shows the affordable and high quality of the
NeaTea Café beverage. Besides, NeaTea Café was trying to avoid
competing price with their competitors that’s way its selling prices is by the
same range that their rivals. There are five major shareholders that affect
pricing such as Consumers, Governments, Suppliers, Distributors and
Competitors.
 NieTea Café must be able to make a balance between the
shareholders to get a profitable income developed by the price of the
products, government will put a select price for the tea applying price
fixing, equity pricing, minimum price, and many more. Customers are the
most important part in this part while pricing claiming that they’re the ones
who are buying the products but will pay a certain price and to know what
price that customers are able to pay, we must make sources and
campaigns to know a little bit more about our customers.

Flavors Price

 Classic Milk Tea

 Okinawa  Medium – P60
 Wintermelon
 Large – P80
 Brown Sugar
 Taro

 Cookies and Cream  Medium – P70

 Dark Choco
 Large – P90
 Red Velvet

 Cheesecake Series
 Medium – P80
 Cheesecake Milk Tea
 Creamcheese Milk Tea
 Large – P100
 Blueberry Cheesecake
 Salted Caramel Cheesecake
 PLACE

NieTea Café is basically situated in our house in Ugong, Valenzuela

City because we do not have a physical branch yet. The NeaTea Café is
looking for some areas that has high foot traffic where we can be
conveniently shopped. NieTea Café hopes to encourage customers to buy tea
while they are shopping in the future but we need to encourage them first to
buy through our Facebook page for us to achieve our goal to have a physical
branch.

PROMOTION

NieTea Café uses different promotional elements such us:

 Personal selling: NieTea Café uses owner’s relatives to interaction to
sample the products and to educate its customers about the teas that we
sell. They will make recommendations to consumers who are looking for to
try new flavors. It means that we’re the ones that will going to deliver our
products.

 Social networks: We use social networks just like Facebook and Instagram
to promote our product. This will give us opportunity to market our product
to a lot of people. They just need to contact us through our social media
platforms to order.
 PART V. Organization and Management
 Organizational Chart

Owner/Manager

Relatives

Nephews Brothers Sister

It is only a small business so we’re the ones that is making our own product and
sells them to customers. In short, we’re an independent business.
  Duties and Responsibilities

Owner/Manager

 The primary function of this role is to head the NieTea Café towards
success, growth and profitability.

 The role holder needs to be able to share the vision and values of NieTea
Café and be able to execute the shared vision.

 To have a strong digital orientation and be able to create a successful

digital marketing for this product.

 Managing all marketing for the business and activities.

 To be able to focus on how and make goals into actions.

Relatives: Nephews, Brothers and Sister

 We’re the one who is making milk tea and making sure that it is high
quality and clean.

 Delivering the products to the customers.

 Promoting our products through social media platforms.

 Company Policies in Hiring and Termination

 Code of conduct.

- Always wash your hands, wear face masks and keeping a 1-

meter distance.

- Make sure that all the utensils that are being used were clean
and tidy especially the workplace.

 Attendance/vacation/time off policy.

 - Since it is only a small business, we need to make sure that
we’re on time in making milk teas to have a consistency and to
continuously progress.

- Vacations are during holidays.

- Since were at home, we close at 9pm onwards.

 Equal opportunity and non-discrimination policies.

- Since we’re family here, we have a good connection and

relationship with each other.

 Workplace safety.

- Always clean the workplace to avoid germs and bacterias

hanging around the house since our product is a food beverage.

 Alcohol, drug-free workplace, smoking, cannabis policies.

- No drinking alcohol, smoking and etc. during work hours.

 Privacy policy.

- Having a privacy policy is important because we need privacy at

all times.

- Respect each other.

 Compensation and Benefits

- We will be paid P100 per week since our business is small.

- The benefits are: Free food, internet and shelter.

PART VI. Production/Operations

 Production process
 Bubble tea is one of the most popular drinks in Asia. It can be served in
many different flavors. These instructions will help you make milk tea flavored at
home in few very easy steps. The whole process will only take about 10-15
minutes so you will be ready to enjoy bubble tea with your friends and family.

Ingredients:
*for one serving size

 1/2 cup of bubble tea mix (flavor of your choice).

 1/2 cup of non-dairy cream

 1/2 cup of brown sugar and 1/2 cup of white cane sugar

 1 cup of black Tapioca pearls

Tools:

 One small cooking pan

 One mid-sized cooking pot

 One cocktail mixer

 Two bowls (mid-sized)

 Bubble tea cups and straws

 One measure cup

 One spoon

Step 1: Make the Sugar Syrup

1. Put 1/2 cup of white cane sugar in the pan

2. Put 1/2 cup of brown sugar in the pan

 3. Put one cup of water into the pan

4. Turn on the stove to high temperature.

5. Stir it while boiling it for 1 minute.

Step 2: Store the Syrup for Later Use

1. Put the syrup in a container for later use.

2. Be careful to the hotness of the syrup.

3. The syrup should be in a liquid status, however, the longer you store it, the
thicker it gets.

Step 3: Cook the Tapioca Pearls

1. Put two cups of water in a pot.

2. Turn on the stove to high temperature.

3. Heat until it boils.

4. Put the Tapioca pearls into the boiling water.

5. Put a lid on the pot for 5-10 minutes, depending on your flavor, the more
you cook, the softer they are.

Step 4: Cool Off the Tapioca Pearls

1. Put the cooked Tapioca pearls into a bowl to cool off.

2. This step can be dangerous, be careful with the steam and the hot water
dropping from the pot.

3. If you want to store the leftover Tapioca pearls for later use, mix some
brown sugar into some water in a bowl and put the Tapioca pearls in it.
Step 5: Put the Ingredients in the Cocktail Mixer to Mix

1. Put 1/2 cup of non-dairy cream into the cocktail mixer.

2. Put 1/2 cup of bubble tea mix into the cocktail mixer.

3. Put 4 spoons of syrup into the cocktail mixer. Add less syrup if preferred.

4. Put 2 cups of water into the cocktail mixer.

Step 6: Shake the Ingredients

1. Shake the cocktail mixer hard for about 30 seconds.

2. Hold on to the top tight to prevent the liquid from spilling.

3. After you shake the ingredients, let the cocktail mixer stand for 30 seconds.

Step 7: How to Serve

1. Put some ice in a cup

2. Put the cooked Tapioca pearls in the cup.

3. Pour everything out from the cocktail mixer in the cup as well.

Step 8: Ready to Drink

1. Put a lid on and straw in the cup and enjoy your bubble tea.

2. Now you have finished all the steps to make a cup of bubble tea, you can
make them for parties or for daily drinks.

 Store layout

We don’t have physical branch or store yet. We make our products in our
home and sell them through social media platforms.

 Hours of Operations
 We are open at 10am and closes at 9pm only because we have a curfew at
9pm. We don’t want to be charged and take risk of disobeying the law of our
community.

 Risk Analysis

Potential Risks Potential Solutions

Look for places that is visible and has

Our location and temporary store
a large number of Gen Z and families
(House). around.

Innovation
Packaging and Flavors

Rent or buy tools and equipments if

Tools and Equipments
necessary.

Practice and hardwork

Experties of staffs

Guides and Plans Map out a marketing plan

 PART VII. Financial Plan

 Pro-forma Balance Sheet

The Balance Sheet: A snapshot of everything your company owes and owns. It
shows what your company is really worth at a given time.

Business Name: NieTea Café

Projected Balance Sheet
As at the end of the first three years of operations
Yr 1 Yr 2 Yr 3

ASSETS
Cash P4,754 P179,761 P73,121
Accounts Receivable 3,000 7,650 5,650
Furniture & Equipment 25,000 450,000 115,375
Buildings & Land 125,386 135,000 255,897
Vehicle 95,140 90,869 185,322
Other - - -

Total Assets P253,280 P458,280 P635,365

LIABILITES
Accounts Payable P25,000 P75,000 P46,740
Business Loan 36,000 6,000 33,345
Other - - -

Total Liabilities P61,000 P81,000 P80,085

EQUITY
Beginning Equity P0 P192,280 P377,280
Add: Investments 10,000 20,000 -
Less: Withdrawals 15,320 75,000 110,000
Add: Profit for the Period 201,600 240,000 288,000
Total Equity P192,280 P377,280 P555,280
Total Liabilities & Equity P253,280 P458,280 P635,365

*Notes on Projected Balance Sheets

 NieTea Café has a total asset of P253,280 on the 1st year, P458,280
on the 2nd year and P635,365 on the 3rd year and also it has a total
liabilities and equity of P253,280 on the 1st year, P458,280 on the 2nd
year and P635,365 on the 3rd year. It shows that it is perfectly
balanced.

 Pro-forma Income Statement

The Income Statement: A list of numbers that adds up all of your revenue
(income) over a period of time, and then subtracts the total costs of running
your business. Whatever is left over is your profit at the end of the period.

PRO-FORMA INCOME STATEMENT Year - 1 Year - 2 Year - 3

REVENUE:
Sales P504,000 P600,000 P720,000
Other Income - - -

TOTAL REVENUE P504,000 P600,000 P720,000

P100,800 P120,000 P144,000
(Minus) COST OF GOODS SOLD

GROSS PROFIT P403,200 P480,000 P576,000

EXPENSES:
Advertising and Promotion P40,000 P50,500 P60,600
Automobile Expense - - -
Bank Service Charges 10,000 15,000 18,000
Insurance 50,000 55,000 66,000
Loan Interest (no principal) - - -
Office Supplies 10,000 12,000 14,400
Professional Fees - - -
 Rent - - -
Telephone/Internet 15,000 20,000 24,000
Travel 10,000 12,500 15,000
Wages and Benefits 10,000 11,000 13,200
Depreciation 10,500 12,000 14,400
Utilities 10,000 13,000 15,600
Maintenance 20,000 22,000 26,400
Contingency 16,100 17,000 20,400
Other -- - - -

TOTAL EXPENSES P201,600 P240,000 P288,000

NET INCOME (before taxes) P302,400 P360,000 P432,000

*Notes on Projected Income Statements

 These are the lists of our income and expenses in running our business. You
can see here the profit of our business at the end of the period.
  Pro-forma Cashflow

Cash Flow Statement: A record that traces the flow of cash in and out of your business over a given period
of time. It shows where the money came from and where it went.

Business Name: NieTea Café

Projected monthly cash flow for the first year of operations
Total
Month Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Projected Project
Year 1
Cash In 1 h2 h3 h4 h5 h6 h7 h8 h9 h 10 h 11 h Year 2 ed
12 Year 3

Sales P42,000 P42,000 P42,000 P42,000 P42,000 P42,000 P42,000 P42,000 P42,000 P42,000 P42,000 P42,00 P504,00 P600,000 P720,000
0 0
Loan - - - - - - - - - - - -

Owner’s Investment 900 900 900 900 900 900 900 900 900 900 900 900 10,800 39,200 49,200

A Total Cash In P42,900 P42,900 P42,900 P42,900 P42,900 P42,900 P42,900 P42,900 P42,900 P42,900 P42,900 P42,90 P514,80 P639,200 P769,000
0 0
Cash Out

Opening Inventory P10,000 P10,000 P10,000 P10,000 P10,000 P10,000 P10,000 P10,000 P10,000 P10,000 P10,000 P10,00 P120,00 P156,000 P202,800
0 0
Inventory 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 48,000 62,400 81,120
Purchases
Advertising 3,333.33 3,333.3 3,333.3 3,333.3 3,333.3 3,333.3 3,333.3 3,333.3 3,333.3 3,333.3 3,333.3 3,333. 40,000 52,000 67,600
3 3 3 3 3 3 3 3 3 3 33
Automobile - - - - - - - - - - - -

Bank Charges 833.33 833.33 833.33 833.33 833.33 833.33 833.33 833.33 833.33 833.33 833.33 833.33 10,000 13,000 16,900

Insurance 4,166.67 4,166.6 4,166.6 4,166.6 4,166.6 4,166.6 4,166.6 4,166.6 4,166.6 4,166.6 4,166.6 4,166. 50,000 65,000 84,500
7 7 7 7 7 7 7 7 7 7 67
Professional Fees - - - - - - - - - - - -

Rent - - - - - - - - - - - -

Taxes and Licenses 12,600 12,600 12,600 12,600 12,600 12,600 12,600 12,600 12,600 12,600 12,600 12,600 151,20 196,560 255,528
0
Telephone/Internet 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 15,000 19,500 25,350

2
Utilities 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 15,000 19,500 25,350

Wages & Benefits 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 15,000 19,500 25,350

Principal (Owners) - - - - - - - - - - - -
Drawings
Loan Payments - - - - - - - - - - - -

Purchase of Fixed 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 96,000 124,800 162,240

Assets 21,106.6 21,106. 21,106. 21,106. 21,106. 21,106. 21,106. 21,106. 21,106. 21,106. 21,106. 21,106 253,28 329,264 428,043.
7 67 67 67 67 67 67 67 67 67 67 .67 0 2
Office Supplies 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 15,000 19,500 25,350

Maintenance 1,666.67 1,666.6 1,666.6 1,666.6 1,666.6 1,666.6 1,666.6 1,666.6 1,666.6 1,666.6 1,666.6 1,666. 20,000 26,000 33,800
7 7 7 7 7 7 7 7 7 7 67
Contingency 1,341.67 1,341.6 1,341.6 1,341.6 1,341.6 1,341.6 1,341.6 1,341.6 1,341.6 1,341.6 1,341.6 1,341. 16,100 20,930 27,209
(Unexpected Needs) 7 7 7 7 7 7 7 7 7 7 67
Other - - - - - - - - - - - -
B Total Cash Out P72,048. P72,048 P72,048 P72,048 P72,048 P72,048 P72,048 P72,048 P72,048 P72,048 P72,048 P72,04 P864,58 P1,123,954 P1,461,1
34 .34 .34 .34 .34 .34 .34 .34 .34 .34 .34 8.34 0 40.2
C Net Monthly Cash
(A-B)
D Beginning Cash
Balance (E of
previous month)
E Ending Cash Balance
(C+D)

3
4