Republic of the Philippines

DEPARTMENT OF EDUCATION
Region IV (A) – CALABARZON
City Division of Biñan

Biñan Integrated National High School

Performance Task
GRADE 11 – ABM

BUSINESS PLAN FOR

Lila Coffee: The Lavender
coffee
ENTREPRENEURSHIP
S.Y. 2021-2022

ABM 11- Herzberg

Poche, Jemina A.
Ong, Dhanabelle
Rivera, Faye Dejan
Salibio, Elaisa
Sinalan, Sheryl Mae
Tino, Shaina Marie
Vibar, Ma Camille
Villanueva, John Raphael
Vinoya, Marion
Wong, Althea
Zulueta, Kristine
 TABLE OF CONTENTS

Title Page ……………………………………………………………………... i

Table of Contents ……………………………………………………………. 2
Introduction …………………………………………………………………... 3
Product/Service Offering ………………………………………………….... 6
Problem worth Solving …………………………………………………........ 7
The Solution …………………………………………………....................... 8
Target Market …………………………………………………..................... 9
Competition …………………………………………………...................... 10
Sales Channels …………………………………………………................ 10
Marketing Plan …………………………………………………................. 11
Revenue …………………………………………………........................... 11
Expenses …………………………………………………......................... 12
Milestones …………………………………………………........................ 13
Team and Key Roles …………………………………………………........ 14
Partners and Resources …………………………………………………... 14
Documentation …………………………………………………................. 15
References ………………………………………………….......................
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I. INTRODUCTION

A. Lila Coffee

Coffee had a considerably greater role in the globe for millennia than most
people believe. Of course, it's a popular beverage in a variety of civilizations
across the world. It also ranks second after oil, traded on the global market
in greater quantities than cotton, wheat, maize, or sugar.

According to Gherman, Alexa, Cocan, Negrea, Rădoi, & Rinovetz (2020),

coffee is an excellent source of antioxidants. Professional studies reveal that
coffee consumption provides health benefits, owing to the high concentration
of antioxidant components that place this beverage among the best foods.

As stated by Avey (2020), its origins are shrouded in mystery and lore, as
they are with most foods that have been around for millennia. Coffee was
discovered by a goat herder named Kaldi, who noticed his goats frolicking
and full of energy after eating the red fruit of the coffee shrub, according to
Ethiopian mythology.

Coffee, as we all know, may make us feel invigorated and make it difficult
to rest. As a result, we developed the idea of having a cup of coffee to keep
us energized whilst still allowing us to calm. We can assure you that this
product offers no health risk to anyone. The fact that it makes us feel calm
and relaxed rather than agitated. Lila coffee is a reliable source of energy for
us. Our company put in a lot of effort to create this type of product, and we're
pleased that we were able to come up with a unique concept that will be a
new taste to everyone.

B. Company Overview

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 Lila Corporation is an organization that produce the newly
innovated product “Lila Coffee.” The figure below shows the
accountability chart of the company. The visionary is a person who is
creative, strategic, understands the big picture, knows what's going on
in your sector, connects the dots, and investigates and creates new
goods and services. Our visionary is Ms. Rivera, Faye.

The integrator is Ms. Jemina Poche, the person who is the tie-
breaker for the leadership team, who is the organization's binding force,
who holds everything together, also who is responsible for the P&L
results, the one who executes the business plan, holds the Leadership
Team accountable, and the organization's steady force. The Integrator
also improves organizational clear understanding, communication, and
consistency, forces resolution, focus, team unity, prioritization, and
follow-through and assists in the removal of obstacles and barriers
(Wickman, 2020).

For the director of Operations, Mr. Vinoya, Marion is the one

whom is assigned, Ms. Vibar, Camille as the accounting manager, Mr.
Raphael Villanueva as the HR director, Ms. Shaina Tino the customer
service manager, accompanied by Ms. Zulueta and Ms. Salibio and
also Ms. Sheryl Sinalan the procurement manager that helps with
determining the inventory and evaluating vendors. We also have the
plant manager which is accountable for the programming and IT related
operations, that is held by Ms. Althea Wong, and lastly the production
supervisor that helps the plant manager in monitoring the maintenance
operation of the company.

The LAV Co. aims:

Mission:
To provide innovative solutions, to our customers, a culture that
engages our employees, and unmatched value to both.
Vision:

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 To achieve success through revolutionizing employee and
customer interactions.

C. LOCATION

We are in the Makati Business District so don’t hesitate to have your own
cup of Zizz coffee and get started on your healthy lifestyle. We are sure that
you won't regret buying this coffee. Instead, you'll be grateful that you were

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 able to come across such a fantastic product.

II. PRODUCT/SERVICE OFFERING

Figure 1. Prototype of Lila Coffee Product

Lila Coffee, includes lavender extract, which has been found to soothe
the central nervous system and promote calmness. Lavender (Lavandula)
contains volatile substances with sedative effects, used to combat anxiety,
insomnia, depression and headache, it also has antiseptic and anti-
inflammatory properties (Gherman, Alexa, Cocan, Negrea, Rădoi, &
Rinovetz, 2020).

The most widely planted species, Lavandula angustifolia, is commonly

referred to as lavender, and there is a color named after the color of the
blooms of this species. Lavender has been used in traditional medicine and

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 cosmetics for millennia, and one study found that "little clinical data supports
therapeutic use of lavender for pain, hot flushes, and postnatal perineal
discomfort."

According to Harmeyer(2020), lavender is one of the most instantly

recognized plants due to its powerful, refreshing aroma and vibrantly colored
blossoms. It's also one of the most adaptable herbs to produce because it
serves a variety of medicinal, aesthetic, and culinary functions. Because
lavender has a relaxing impact on people, it is utilized in a variety of stress-
relieving products such as bubble bath, candles, and eye pillows.

Even if you routinely consume items like these or have cultivated the plant
in your yard, you may be unaware of how magnificent this herb truly is.
Lavender is much more than a fragrant herb. According to research, it may
aid with stress, chronic pain, high blood pressure, and asthma. We all know
that lavender paired with coffee is uncommon, and with our product, we will
make it more renowned. And because of its powerful, refreshing aroma, our
customers will adore it, and they will return because of the distinctive and
exquisite flavor of our product.

III. PROBLEM WORTH SOLVING

An excessive amount of coffee can induce a variety of negative side

effects, including insomnia, anxiousness, restlessness, stomach discomfort,
nausea, vomiting, elevated heart rate, and increased breathing rate. There
are instances when drinking coffee can cause us to feel agitated and
uneasy. Caffeine can cause your muscles to twitch if you have too much of
it in your system.

Palpitation is never a good sign, but it's especially concerning if you're a

coffee drinker and it happens to you. This might put your life in danger. We
are all aware that the majority of people adore coffee to such an extent that
they forget about the drawbacks associated with it. Because maintaining our
health is of the utmost importance, everything ought to be under control.
Our organization developed a coffee that has the potential to help us steer
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 clear of those harmful occurrences in our life.

IV. THE SOLUTION

It's possible that the lavender extract and granulated coffee in Lila
Coffee can help treat mood issues. Lavender is a popular ingredient in
therapeutic blends as well as dietary supplements because of its potential
to alleviate symptoms of anxiety, depression, and exhaustion, as well as to
facilitate better sleep. Both the physical and mental health of the individual
is improved. It also lessens the likelihood of having palpitations.

According to previous research, drinking coffee has also been

associated with a lower risk of depression, so we come up with the idea of
having a cup of coffee that can make us relaxed without worrying about our
health risks. According to an article published in Psychology Today, caffeine
stimulates the release of dopamine, which is a neurotransmitter that makes
a person feel good in the region of the brain that is responsible for regulating
mood.

Caffeine, which is found in our Lila coffee, is the product that can help
you focus better and be more productive, which, in turn, may help reduce
the amount of anxiety you feel. While inhibiting adenosine receptors, Lila
Coffee promotes the generation and release of dopamine in the prefrontal
cortex of the brain, which is the region of the brain that is important for the
control of mood. The release of dopamine, in addition to serotonin and
noradrenaline, works together to produce a natural mild antidepressant,
which is responsible for our positive feelings.

Lavender is great for relaxing our nerves and producing a perfect

balance of calm and relaxation while remaining energized. It also
neutralizes the negative effects of coffee, giving you the same alertness and
focus without the exhausting nervous anxiety. Lavender can also aid us with

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 digestive difficulties ranging from diarrhea to nausea and stomach cramps,
which is why it can be very beneficial to us that our coffee offers.

V. TARGET MARKET

Our goal is to assess the clients to whom the company want to advertise
their goods. The value potential of each customer or group of customers,
referred to as segments, is the focus of the customer portfolio study. Our
company implements a differentiation emphasis approach, which attempts to
set us apart in a number of key market areas.

Market Segmentation

a. Geographic: It makes no difference if people from other divisions

come merely to try our Lila coffee. As a result, we are for now
concerned with the citizens of the NCR region.

b. Demographic: Although our product is primarily aimed at those aged

20+ and above, it also appeals to teens because coffee is such a
popular beverage nowadays, as well as those aged 13 to 18, and the
remainder of the age range who may consume coffee. As a result,
it's ideal for attracting families of various sizes.

i. Age: Under 10 years, 7-12 years, 13 - 18 years, 20- 34 years,

35-49 years, 50-60 years,60+ years.
ii. Gender: Male, Female, LGBTQ+

c. Behavioral:

Benefits: Quality

Occasions: Regular

User Status: Potential user, First time user, Regular user

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 Readiness stage: Unaware, Aware, Informed, Interested,
Desirous, intending to buy

VI. THE COMPETITION

STRENGTH WEAKNESS

• Benefits: It aids sleep problems. Lack of Capital: We only have startup

• Uniqueness: This product is funds that will come from investors and
incomparable to other coffee also from our own personal funds.
products in terms of flavor and
advantages.

OPPORTUNITIES THREATS
• Growing Market: The market for • Competitive Market: Marketing
coffee products is huge and
campaigns are becoming
increasing.
expensive and

VII. SALES CHANNELS

Indirect sales channels involve the employment of intermediaries to
allow us to contact a larger number of customers. Online marketplaces such
as Shopee and Lazada may act as our distributors. In such situation, our
company would not be ignored, and it would be an excellent chance to
expand our business. The purpose of developing our indirect sales channel
is to offer items in the most efficient and effective manner possible for both
our customers and our firm. This will assist us in allowing our organization
to boost sales fast without having to recruit more sales staff.

However, there are certain disadvantages to our techniques. For

starters, additional fees might have a negative impact on profits. In addition,
the employment of affiliates or resellers may result in a loss of control over
the brand message and a reduction in the quality of customer care.

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 However, we will make certain that we are able to manage everything
appropriately and that this will result in a satisfactory end.

The sales channel strategy of our organization may have an influence

on the sales channel selections made by our customers.
VIII. MARKETING PLAN
Our main marketing approach is to advertise our items on social media
platforms like Facebook, Instagram, and Twitter. Through our official profile
on each site, our organization will display adverts and commercial videos.
Customers may also remark on their comments, and good feedback, in
particular, will attract additional potential customers or purchasers. Because
of the widespread usage of social media, this is both cost-effective and has
a significant impact on our generation.

IX. REVENUE

Projected Annual Revenue - Lila Coffee

2022 2023 2024 2025 2026 Five-year Totals
Units in Pipeline 200,000 216,000 241,920 278,208 328,285 1,264,413
Pipeline Growth Rate 8% 12% 15% 18%
Conversion Rate 30% 32% 34% 36% 38%
Annual Units Sold 36,000 42,240 50,266 61,206 76,235 265,947
Price per Unit ₱300.00 ₱300.00 ₱305.00 ₱305.00 ₱310.00 ₱300.00
Revenue ₱10,800,000.00 ₱12,672,000.00 ₱15,331,130.00 ₱18,667,830.00 ₱23,632,850.00 ₱81,103,810.00

We begin with 200,000 annually then approximated the growth rate for

the following years. The pipeline growth rate is the percentage that the

pipeline is estimated to increase. It may have been based on the rate of

industry development or your sales team's potential to increase your

pipelines. Since 2022 is the first year, it is blank. The proportion of units in

the pipeline that are sold is represented by the yearly average conversion

rate. These are the things or units that you have bargained. We'll assume

that as we get better at marketing the products, conversion rates will

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 increase by 2% every year. While in the price per unit of the product we

suppose that the commodity rises by 5 pesos every two years. It may be

influenced by competition, consumer feedback, or industry practices.

X. EXPENSES

Lila Corp. Start-Up Costs

Estimated Monthly Expenses

Estimated Monthly
Item
Expenses
Salary of Owner-Manager ₱ 6,000.00
All Other Salaries and Wages ₱ 4,500.00
Rent ₱ 5,000.00
Advertising ₱ 1,000.00
Delivery Expense/Transportation ₱ 500.00
Supplies ₱ 2,000.00
Telephone, Fax, Internet Service ₱ 856.00
Other Utilities ₱ 2,000.00
Taxes Including Employment Insurance ₱ 20,952.00
Legal and Other Professional Fees ₱ 5,000.00

Total Cash Required for Monthly Expenses: (C ) ₱ 47,808.00

One Time Capital Costs

Cash Required
to Start
Business
Capital Costs
Fixtures and Equipment ₱ 30,800.00
Installation of Fixtures and Equipment ₱ 20,000.00
Starting Inventory ₱ 8,000.00
Soft Costs
Deposits with Public Utilities ₱ 1,000.00
Licenses and Permits ₱ 500.00
Advertising and Promotion for Opening ₱ 2,500.00

Total One-Time Cash Requirements: (D) ₱ 62,800.00

Total Estimated Cash Required to Start Business: (C) + (D) ₱ 110,608.00

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 XI. MILESTONES
MILESTONE DUEDATE DETAILS
GROUP BRAINSTORMING COMPLETED We made a group chat and
talked regarding the possible
product and product name
that we want to promote as
part of our business proposal
PRODUCT & BRAND COMPLETED Our group’s business focus
NAME is Coffee as our product. We
also made sure that our
product name is unique and
have a greater role for
millennia. Our product name
is “Lila Coffee”
CREATE SOCIAL MEDIA May 1, 2022 We will create social media
ACCOUNTS accounts to attract
customers online, get
customers feedback and
build customer loyalty.
LOOK FOR POSSIBLE May 15, 2022 We look for possible Direct
SUPPLIERS OF RAW suppliers for raw materials
MATERIALS NEEDED needed to make sure that we
have a good service and
resources.
PRODUCT PACKAGING June 15, 2022 At this stage, we will focus on
how to preserve our
products and ensure that it
will deliver to consumers
fresh and in good condition;
highlighting the products
greatest qualities, and it
giving customers an
unforgettable experience.
SOCIAL MARKETING July 1, 2022 To promote our product
online, and attract more
customers from wider
locations.
REVIEW ON CUSTOMERS July 30, 2022 To make sure that our
FEEDBACK product satisfies the need of
our consumers.

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 XII. TEAM AND KEY ROLES

TEAM AND KEY ROLES

GENERAL MANAGER

Jemina Poche

PRODUCTION FINANCE MARKETING R&D

MANAGER MANAGER MANAGER MANAGER

MARION CAMILLE FAYE SHERYL

VINOYA VIBAR RIVERA SINALAN

PRODUCTION FINANCE MARKETING PERSONAL

GROUP GROUP GROUP GROUP

JOHN DHANABE
ELAISA KRISTINE
RAPHAEL
LLE ONG
VILLANUEVA SALIBIO ZULUETA

XIII. PARTNERS AND RESOURCES

The category of this resources is Intellectual resources meaning to say it is such

as our brand, patents, copyrights, partnerships and customer databases. This can
include recipes for those who deals with food. Or it can include a particular way of
doing things. Before we developed our business, we unsure about what resources do
we need the most to start our beverage business. We started to prepare a list of the
resources that we need and eventually we realized that it is hard to start. But we are
so happy and unexplained emotions because we did it since the list helped us keep
our eyes open into the opportunities that we've got. And had a potential business
partner that had better access to some of these resources that we had.

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 As a raw material we needed the seed or bean of the coffee tree. Coffee beans
contain more than one hundred chemicals including aromatic molecules, proteins,
starches, oils and bitter phenols. Each of these are contributing a different
characteristic to the unique flavor of coffee. And the holder of the product and
packages to package the products.

At this point we needed some helped of our fellow member (human resources)
to helped us to prepare the products, packaging them and carrying them to local
market with a vehicle.

Actually we used our own room or place (physical resources) to prepare the
products, so we did not need to spend money for a space.

Lastly, we needed some capital to pay upfront to fill the purchase orders from
our customers.

We are thinking twice because we need more resources. We also think that to
grow our business we had to Leave our own house and get into a house that we are
focusing and planning together. And we need a car that can transport our products to
the market, own computer and own website to grow our online presence because in
this situation or in this country the most of the thing that we need is in the online world.
So we are already thinking this from the beginning. We listed both of our initial
resource needs as well as future resource needs so that we kept in our mind what we
needed to grow the business. And that's all our resources in our business.

XIV. DOCUMENTATION

Conducting a virtual
meeting on Google Meet for
the distribution of tasks to start
our business plan. We have
discussed the details on every
part of the business plan and
each member were given
specific parts to be written and
passed on the deadline that all
the members agreed with.

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 XV. REFERENCES

Avey, T. (2020, September 29). History of Coffee | The History Kitchen. PBS Food.

https://www.pbs.org/food/the-history-kitchen/history-coffee/

Wickman, G. (2020, January 29). What is an Integrator? Part II. EOS Worldwide.

https://www.eosworldwide.com/blog/46806-eos-integrator-part-ii

Alves, H., Fernandes, C., & Raposo, M. (2016). Social Media Marketing: A Literature

Review and Implications. Psychology & Marketing, 33(12), 1029–1038.

https://doi.org/10.1002/mar.20936

Gherman, I., Alexa, E., Cocan, I., Negrea, M., Rădoi, P. B., & Rinovetz, A. E. (2020).

Effect of Mixing Coffee with Some Therapeutic Potential Plants on Some

Quality Indicators of the End Product: A Case Study. Proteins, 10(11.0), 11-0.

Wikipedia contributors. (2022, May 4). Lavandula. Wikipedia.

https://en.m.wikipedia.org/wiki/Lavandula

Harmeyer, C., & Beck, A. (2020, July 11). 5 Facts About Lavender That Will Make You

Love this Fragrant Herb Even More. Better Homes & Gardens.

https://www.bhg.com/gardening/flowers/lavender-facts/

Healthy Options, Philippines : We empower people to take control of their health.

(2019, August 7). Healthy Options. Retrieved May 13, 2022, from

https://www.healthyoptions.com.ph/#:%7E:text=Previous%20studies%20have

%20also%20linked,mood%2C%20according%20to%20Psychology%20Today

Stieg, C. (2020, March 9). A strong cup of coffee boosts focusses and problem-solving

— but not creativity. CNBC. https://www.cnbc.com/2020/03/06/caffeine-boosts-

focus-and-problem-solving-not-

creativity.html#:%7E:text=The%20researchers%20found%20that%20while,wo

rk%20in%20completely%20different%20ways
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