I.

EXECUTIVE SUMMARY

The manufacturer of bakery products is a significance part of the worldwide

food industry. In the Philippines, the industry produces billions of pesos worth of

goods annually. Bread and cake products lead in total sales value, followed by

cookies and other products.

The industry consists of large wholesale bakeries, which sell their products to

retail outlets or food-service operations; retail bakeries owner; and usually run by

independent bakers; franchised retail outlets; and in-store bakeries which are specialty

sections for supermarkets.;

Small neighborhood bakeries, similar in scale to this one being proposed,

owned by the baker, and often staffed by family members are usually the main

supplier of breads, rolls and pastries and sell much during occasion such as

Christmas, town fiestas, birthdays, anniversaries and the like.

On a regular consumption scale, it has been observed that Filipinos are bread

eaters and consume a lot with different kinds of breads, which are regularly baked in

the bakeshop business. Bread is usually eaten at breakfast and snack or “merienda”

time both households and field workers alike not only because of its taste but mostly

due to convenience. One does not need to wash hands or used plates, spoon, fork and

other utensils to eat bread. It can be taken almost anytime and anywhere as it is

considered a “finger food”.

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 There will be (3) marketing strategies that will be adopted: one is through a

display store for “walk-in” customers; the second one is by delivery or “peddling” to

nearby and other barangays or towns in the province; and the third is through online

platform. The business will also establish linkages with stores and snack houses for

regular delivery schedules of ordered bakery products and confectioneries. The

management will also employ order system for special occasions like celebrations of

birthdays, anniversaries, and town fiestas.

Since one of the marketing strategies is “peddling”, the management will

provide its own vehicle – a motorcycle or a tricycle which can be used for the

purpose. In this way the transport of the goods will be facilitated and delivered on

time. The GRCJ Bakeshop is in a position to capitalize on this online marketplace by

leveraging existing technologies, industry best practices, and an aggressive marketing

and sales campaign to ramp up the company’s growth projections for the foreseeable

future.

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II. DESCRIPTION OF PRODUCTS AND SERVICES

The GRCJ Bakeshop will consist of 4m x 6m one- storey concrete building

made from concrete hollow blocks with concrete walls and flooring and with

galvanized sheet. The building will be divided into 3 areas namely: the selling and

display area where aluminum and glass display shelves will be located; the processing

and cooking area where the products will be cooked and shelved for cooling prior to

display; and a worker’s quarters where the bakers and helpers will be sleeping at

night considering that baking and cooking will be done as early as three o’clock (3:00

A.M) in the morning.

The bread to be baked in the morning will differ from those to be baked in the

afternoon. In the morning, bread food for breakfast like “pan desal”, “monay” and the

like will be prepared to provide for the consumer’s morning meals. This will also

include bread for snacks during recess in schools and in offices. In the afternoon,

bread suited to “merienda” time will be prepared.

The GRCJ Bakeshop will be managed by the proprietors themselves

considering that said proprietor has a technical working knowledge on the operations

and maintenance of the bakeshop business. It will be operated on the concept of a

family enterprise where most of the family members but are paid of their wages

accordingly.

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 The GRCJ Bakeshop is a profitable venture just as small dough rises to

become big bread. By just looking around at the local scene, one can observe that the

bakeshop business is a sustainable and economically viable as a livelihood

particularly to those who already have the technical working knowledge in its actual

operation and management.

The GRCJ Bakeshop will adopt (3) three marketing strategies: one is through

a display store for “walk-in” customers; the second one is by delivery or “peddling”

to nearby and other barangays or towns in the province; and the third is through

online platform. By offering its products through an online platform, “peddling” and

“walk- in”, GRCJ Bakeshop can market their products to an entirely new market,

increase revenue and growth projections, and allow customers to purchase our

products from the convenience of their homes.

The GRCJ Bakeshop will help in the economic growth of the community. It

will not only be the project proponent who will be benefitted in terms of the profit

that gains but also those who own sari – sari stores who will patronize the goods from

the bakery and sell them in their stores. This may pave the way to a bigger business

later on

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III. TECHNOLOGY CONSIDERATIONS

Technology is changing the way bakeries sell their products, whether it's an

internal sales database, a consumer ordering tool, or website analytics. The more

accurately a bakery can forecast sales, the better it can manage inventory to ensure

that customers get what they want, when they want it.

Bakeshop's operation relies heavily on technology. A baking oven machine

alone can cost more than Php 45,000, according to consulting firm GRCJ Bakeshop,

while the overall cost of equipment in a bakeshop can be Php 60,000, accounting for

about a third of the entire business costs, without considering the cost of buying or

leasing the premises, . However, it is not just the equipment that allows for a wide

range of baked loaves, but also the technologies used in the stores. For this business

to advance toward establishing an online marketplace where clients may buy our

products, it will need to upgrade its technological capabilities. Customers want a

simple and easy manner to perform online transactions, and it is critical that all

transactions be secure. Additionally, new internet marketing functionalities must be

explored in order to target existing and potential customers via email lists,

promotional advertisements, and loyalty discounts. The GRCJ Bakeshop intends to

use cutting-edge technology not only in the warehouse but also in the trade to

improve the efficiency of our distribution techniques.

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 By modifying baking techniques, new baking technologies can help you

enhance the uniformity of the items you manufacture. If bake times, crusts, or other

characteristics of your pies, cakes, and breads were compromised, you had to

manually transfer pans from lower to higher racks in older ovens. Using ovens with

moving racks and temperature probes, you may improve your baking outcomes with

new technology. Some equipment, such as spiral mixers, helps you mix larger

batches and preventing over-mixing. This reduces oxidation in the dough.

Technology that helps you reduce or eliminate labor hours will decrease your

production costs. While you might not be able to eliminate staff, you will be able to

produce more items per staff member in the same amount of time, decreasing your

cost to make each item and increasing your output. With the demand for home food

delivery and curbside pickup increasing, bakeries who use technology to support

these types of sales will earn more. Inventory tracking, not just of finished goods

but also of ingredients, aids in the smooth operation of bakeries.

The GRCJ Bakeshop has a modest information technology (I.T) group, the

skills required to develop, create, and deploy the type of sophisticated online platform

required for this effort does not currently exist. As a result, it is suggested that work

be outsourced to an online marketplace supplier who can work with the GRCJ

Bakeshop to meet its needs within the established timescales and budgets. While the

GRCJ Bakeshop does not have this expertise on staff, the technology does exist and is

widely used in the marketplace, lowering the risk of this proposal being considered.

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IV. PRODUCT/ SERVICE MARKETPLACE

GRCJ Bakeshop will be providing the community with high-end baked

products made from local supplies. GRCJ customer value proposition is to provide

individual and business customers with baking goods based on fine quality, supreme

taste, and unique and original design, as well as decorating instructions.

Within the first year of the business, The GRCJ Bakeshop intends to open

retail/ wholesale stores and quality showroom. Product will be available for

purchased by both wholesalers customers who need product between delivery days,

as well as retail consumers interested in purchasing the product for their home use.

We will also offer a showroom that will features equipment’s, supplies, trade

resource and information on marketing strategies with the examples of marketing and

promotional material available to customers. Addition to that the GRCJ Bakeshop

will offer customers quarterly product and training demonstrations that will be

presented by trained pastry chefs from the industry. The GRCJ Bakeshop will also

hold semi-annual trade shows for current or potential customers.

The GRCJ Bakeshop will sell its goods by delivery or "peddling" to local

barangays and towns in the province, as well as through an online platform. This

enables the GRCJ Bakeshop to deliver on time and eliminates the need for a central

warehouse or facility to store and distribute its goods. A facility like this would

necessitate a substantial capital investment as well as higher operating and

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maintenance expenditures. The GRCJ Bakeshop must ensure that all store locations

maintain adequate inventories on hand to satisfy customer demand.

GRCJ Bakeshop is set apart from the competition in four main ways. In an era

when food is becoming chemistry, GRCJ will focus on raw, natural, and sometimes

organic and local ingredients to create its product. Thus, our products taste better and

are better for you. Each of our products contains extra detail to set it apart from the

competition. We ensure that our products appeal to the eye as well as to the stomach.

The sky is the limit when developing a pastry design. We will cater to the wants and

needs of our customers in every way possible. When customers want detailed or

shaped cakes, different ingredients flavors to be added at bread we will match the

picture or the design that they provide. Customer service is our number one priority.

We will ensure that each customer is treated with kindness, respect, and a warm

welcome on each visit to GRCJ Bakeshop.

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V. MARKETING STRATEGY

GRCJ Bakeshop will be utilizing (3) marketing strategies : one is through a

display store for “walk-in” customers; the second one is by delivery or “peddling” to

nearby and other barangays or towns in the province; and the third is through online

platform.

One basic marketing strategy is to work with customers on a one to one basis

to ensure their supply needs are being met. GRCJ Bakeshop intends to prioritize

customer services and makes it a key component of our marketing programs. GRCJ

Bakeshop believes that providing customers what they want is the key to successful

business and positive word of mouth advertising. Word of mouth and public

perception are immensely important in both aspects of the business. First of all,

customers must understand that our products are made with quality ingredients and

thus taste better than many of our competitors.

Our wholesale customers will be promoting and advertising our product brand

in order to develop further business for themselves. The advertisement will occur in

their store through their menu, display case, GRCJ Bakeshop logo, etc. Also, when

our wholesale customers advertise publicly, it is to their advantage and ours to

mention that they sell GRCJ Bakeshop products.

GRCJ Bakeshop will also implement a customer emailing list in order to send

product promotions, sales advertisement, and other special offerings to customers

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who register. Additionally, GRCJ Bakeshop will offer referral incentives to customers

who refer our products to friends and family in order to provide additional incentives.

Also, GRCJ Bakeshop will maintain a customer database in order to determine its

target customer group and geographical regions. A well lay out and user friendly web

page is important for the growth GRCJ Bakeshop. The site will include detailed

descriptions of the products, photos of goods, a description of the company and its

philosophy, and contact information to raise awareness of GRCJ Bakeshop. In

addition, the website will include information on the upcoming classes offered with

detailed descriptions of each class and photos of products.

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VI. ORGANIZATIONAL AND STAFFING

The association between employer and employees will determine the

relationship between the employees and a particular business entity. This GRCJ

Bakeshop will be a sole proprietor’s; hence the owner is synonymous to the business.

This means the relationship between the workers and the employer will signify that

between the business and the employee.

However, several staffing additions required to successfully implements the

sales campaign. All of these positions will work existing departments and report to

department manager,

Staffing Position #1: Sales Manager

 This full time position will lead sales staff inn identifying sales

opportunities and converting these opportunities to actual sales.

 Motivating staff on leading the team to achieve sales targets.

 Networking with companies in the industry.

 Carrying out sales training with sales executives and role playing sales

techniques.

 Visiting customers and potential customers alongside sales executives.

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Staffing Position #2: Marketing Manager

 Managing all marketing for the business all activities within the

marketing department

Staffing Position #3: Cashier

 Responsible for cashiering system.

 Scanning goods and ensuring pricing is accurate.

Staffing Position # 4: Owner/ Proprietor

 Responsible for the overall operations of the business.

Staffing Position # 5: Pastry Chef/ Baker

 Responsible for preparing wide variety of goods.

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 VII. SCHEDULE

The GRCJ Bakeshop online sales campaign is expected to take ten months

from project approval to launch of the e- commerce platform. Many of the foundation

for this platform, such as high – speed internet and web server capability, are already

available. The following is a high level schedule of some significant milestones for

this initiative.

December 1, 20xx: Initiate Project

January 1, 20xx: Project Meeting

February 1, 20xx: Complete Online Sales Site Design

March 1, 20xx: Complete Testing of Online Sales Site

April 1, 20xx: Go live with site launch

Upon approval of this project a detailed schedule will be created by the assigned

project team to include all tasks and deliverables.

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 VIII. FINANCIAL PROJECTIONS

The primary expense to establish GRCJ Bakeshop is ₱500,000. Financing will

come from the family’s capital. The following tables illustrate the bakeshop projected

initial start – up costs.

Projection of Start-up Costs

Start- up Capital: ₱ 200,000.00

Startup- Expenses:

Legal ₱ 5,000.00

Equipment’s ₱ 100,000.00

Advertisement ₱ 10,000.00

Materials ₱ 125,100.00

Inventory ₱ 50,000.00

Operational/production expenses ₱ 50,000.00

One- storey concrete building/

₱ 151,200.00
bakeshop

Other expenses ₱ 8,700.00

Financia

Total of Start-up Cost: ₱ 500,000.00

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Sales Forecast

April May June

Sales ₱ 600,000 ₱ 700,000 ₱ 900,000

Other ₱0 ₱0 ₱0

Total Sales ₱ 600,000 ₱ 700,000 ₱ 900,000

Direct Cost of Sales April May June

Cost of Sales ₱ 550,000 ₱ 700,000 ₱ 900,000

Other ₱0 ₱0 ₱0

Total Direct Cost of

₱ 550,000 ₱ 700,000 ₱ 900,000
Sales

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Pro Forma Profit and Loss

April May June

Sales ₱ 600,000 ₱ 700,000 ₱ 900,000

Cost of Sales ₱ 550,000 ₱ 700,000 ₱ 900,000

Other ₱0 ₱0 ₱0

Total Direct Cost of

₱ 550,000 ₱ 700,000 ₱ 900,000
Sales

Expenses

Salary Expense ₱ 80,000 ₱ 100,000 ₱ 120,000

Utilities ₱ 10.000 ₱ 10,000 ₱ 15,000

Other ₱ 3,000 ₱ 3,000 ₱ 5,000

Total Operating
₱ 93,000 ₱ 113,000 ₱ 140,000
Expenses

Net Profit ₱ 457,000 ₱ 587,000 ₱ 760,000

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IX. FINDINGS AND RECOMMENDATIONS

Based on the information presented in this feasibility study, it is recommended

that GRCJ Bakeshop online selling is effective way to increase sales. The findings of

this feasibility study show that this online selling will be highly beneficial to the

organization and has a high probability of success. Key findings are as follows:

Technology:

 Adjusting item prices, profit or margin

 Tracking inventory

 Reducing out-of-stocks

 Providing sales history program

Marketing:

 Trade resource

 The growth of the bakeshop offers excellent for new companies to

enter this market.

 GRCJ Bakeshop is able to differentiate itself from its competitors and

will utilize incentive programs to target new consumers.

Organizational:

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  Minimal increases to staffing are required with no changes to

organizational structure

 No new facilities or capital investments are required

Financial:

 Break even point occurs early in the second year of operation

 GRCJ Bakeshop will be in position to capture greater market share by

maintaining both an in-store and online presence.

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