Chombs: Gives life to your drinks that will make sure you go

Boom!

Chapter I

BUSINESS DESCRIPTION

BUSINESS CONCEPT

Back in October 2020, chocolate bombs became a trend on social media

platforms. The satisfying effect of the melting chocolate bomb on milk or hot choco and

the delicious flavors of the choco bomb is what caught the attention of many.

We thought of a product that is on-trend right now, one that's doable and

interesting. That is when the choco bomb came to mind but how can we make it unique?

We thought about contradicting the satisfying effect of the melting choco bomb with a

very displeasing sight of its inside contents.

Feasibility

● Budget-Friendly ingredients. The ingredients required to create a chocolate bomb

mainly consist of chocolate and marshmallows. These ingredients can easily be

found in nearby local supermarkets or even convenience stores.

Profitability

● Unique Approach to Marketing. We plan to build a connection to the community

of the people who buy our product by keeping up with the trend. We will be

focusing on what the customer wants by opening commissions to get ideas on

what flavors we will make for our chocolate bombs. This is due to our belief that

the customers are what makes a business successful, that selling won’t suffice for

a business’s success but also the relationship you create with the consumers that

you gain.

● Confidence in the Product's Quality. We have great confidence in the product’s

quality due to its cheap ingredient and very easy procedure to create the chocolate

bomb. Although it is very cheap, the product is very unique for a beverage

accessory.

Marketability

● This has a high-profit margin because it caters to both children and hot chocolate

lovers. Since it was only introduced in the market in 2019 by an entrepreneur

named Eric Garcia, there are only a few competitors in the market, and most of

these competitors have a higher price, so only a few people enjoy the surprises of

the choco bomb. This ensures the product's high profitability.

● The cost of raw materials for making choco bombs is not particularly low, but it is

still affordable to turn a profit on. The product is undoubtedly profitable to the

business due to its element of surprise and ease of manufacture.

BUSINESS MODEL CANVAS

MISSION

As a luscious young brand, we strive to create the perfect premium chocolate

bombs that will make our customers happy. We will continue to thrive in order to provide

Chombs to the world.

VISION

Chombs™ envisions itself as a leading luxurious beverage accessory brand that

gives its customers a day they can look forward to by pairing their favourite drink with a

ball of Chombs!

OBJECTIVES
 1. To establish a profitable business even with budget-friendly ingredients.

2. To provide a fun and satisfying drinking experience for customers to enjoy.

3. To be able to produce new and delicious recipes of chocolate bombs.

4. To mass-produce choco bombs without a single one going to waste.

PRODUCT OFFERINGS AND DESCRIPTION

Choco
Bombs

Choco- Choco Coffee

Ablanco
choco Adrop
choco Cafelate Converter
A coffee
latte
Classic: A coffee
bomb bomb layered layered
Chocolate
covered in covered in choco choco
layered
white coffee bomb with bomb with
choco
chocolate chocolate marshmall marshmall
bomb with
with with ows and ows and
marshmall
marshmall marshmall coffee coffee
ows in the
ows in the ows in the powder in creamer in
inside
inside inside the inside the inside
Chapter II

MARKET ANALYSIS

MARKET CHARACTERISTICS

Porter's 5 forces
 The threat of New Entrants. It is possible for new entrants to enter since the

business itself is not hard to establish but it is hard to maintain it running through the

industry. This is due to high initial capital, it needs experience and raw ingredients have

complicated supply channels. To prevent the entrants from snatching the market, Chombs

will continuously innovate new products and services. New products not only bring new

customers to the fold but also give old customers a reason to buy again.

Bargaining Power of Suppliers. Suppliers' bargaining power is reduced because

Chombs is a significant customer of the supplier group and the supplier does not pose a

threat to forward integration. However, supplier bargaining power is moderate to high

because the supplier group is concentrated; there are no substitute products, and the

supplier's product is important to the industry.

Bargaining Power of Buyers. Buyers can be a demanding bunch. They want to buy

the best products available at the lowest possible price. In the long run, this puts a strain on

Chombs' profitability. The smaller and more powerful Chombs' customer base, the greater

the customers' bargaining power and ability to seek increasing discounts and offers.

Establishing a large customer base can reduce the buyers' bargaining power and provide an

opportunity for Chombs to streamline its sales and production processes.

Threat from Substitute Products. Chombs' profitability suffers when a new

product or service meets similar customer needs in different ways. This could be avoided
 by being service-oriented rather than product-oriented, and by understanding the customer's

core need rather than what the customer is purchasing.

Rivalry among the existing players. In the chocolate industry, competition is fierce

in terms of price wars, promotions, advertisements, product lines, services, and so on, but

competition in the product itself is only moderate. Since the product itself is quite new to

the market many competitors are only selling it at high prices and usually in online stores.

This could be a significant advantage because Chombs could offer much lower prices than

its competitors.

Summary

FORCES LEVEL

The threat of New Entrants Low

Bargaining Power of Suppliers Moderate

Bargaining Power of Buyers Moderate

Threat from Substitute Products High

Rivalry among the existing players Moderate

PEST Analysis
 Political. Several businesses have been affected by government policies as a result

of the COVID pandemic, and many have closed or been restricted. It will be difficult for

the proponents to open the Chombs during a pandemic. Even if the proponents were able to

open the Chombs, the unpredictability of policy changes may disrupt its operation.

However, to avoid this situation, proponents will always be prepared in the face of

changing policies.

Economic forces. Many people have lost their jobs as a result of the global

slowdown caused by COVID-19. As a result, people have much less money to spend on

confectionery. People are now spending much less on confectionery, which is a major

source of concern for the business. Globally, income levels are relatively low, and inflation

rates are high. As a result, this company is experiencing a decrease in demand for its

product. This will almost certainly harm the Chombs’ revenues. The cost of raw materials

has the possibility of increasing as several manufacturing businesses are affected during the

pandemic. One of these is the increase in prices in sugar because of the slow decline of the

production of sugar cane.

Social. Many people prioritize health nowadays because of the panic caused by the

pandemic. This will affect the future demand of the consumer for our products since many

people consider sweets as unhealthy, however, this should not much affect the Chombs

since they are not the target consumers.

 Technological. The Chombs offers direct selling through social media like

Facebook and Instagram. Chombs engages with customers on social media on a regular

basis and advertises on various media platforms to establish its presence everywhere.

Promoting its brand on social media saves the company a lot of money while also ensuring

that its promotions reach a large number of people.

SWOT ANALYSIS

TARGET CUSTOMER PROFILE

 Age. The age of the target customer. The target age for the customer is above 13

years of age but chombs are open for all ages.

E-mail address. The active email address of the target customer. It can be through

Email, Gmail, Yahoo, or any platform that can be used to contact the customer.

Gender. The gender of the target customer. Male, female, LGBTQ+(Lesbian, Gay,

Bisexual, Transgender, Queer, etc.)

Location. The location where the target customer came from or where the target

customer lives.

Mobile number. The active and current mobile number of the target customer.

Monthly Income. The target customer’s total monthly earnings.

Personality. The personality traits of the target customer. Sociable, Adaptable,

Empathetic, Friendly, Keen, etc.

Interest. The personal interests of the target customer. Drinking coffee, Drinking

milk, Vlogging, Cooking, etc.

Buying Behavior. The spending habits and preferences of the target customer.

Preferred Taste. The preferred flavor or taste of the target customer. It can be

sweet, sour, salty, bitter, spicy, creamy, milky, or dull.

Chapter III

COMPETITOR ASSESSMENT

STRATEGY CANVAS
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4.80 4.73
4.70 4.63
4.60 4.60
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4.50 4.50
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4.50 4.50 4.40
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4.43
4.30
4.20
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Chombs

Competitors

Chapter IV

MARKETING PLAN

PRODUCT AND SERVICES

Chombs offers a trendy dessert with different flavour variations. With the different

flavours of our product, our customers will have the freedom to choose the flavour that will

satisfy their cravings and will suit the drinks that they preferred. Chombs lets the customers

enjoy the aesthetics of Chombs’ chocolate bombs.

 Chombs is open for commissions or product customization from customers.

Customers will be able to reach chombs not only on the store but also on social media

platforms like Facebook. Chombs accepts cash and online payment through Gcash or

Paymaya which makes payment quick and easy.

PRICING

Cost per Ingredient:

Measurement Ingredient Price

50g Chocolate Php 10

50g White Chocolate Php 8.75

2.5g Wiggles Php 0.85

1 Tbsp Mini Marshmallows Php 3.71

1 Tbsp Coconut Oil Php 3.12

1 Tbsp Cooking Oil Php 1.105

12.6g Instant Coffee Mix Php 10

15g Creamer Php 2.79

24g Milo Php 7

Cost Per Unit:

Product Price

Classic (Chocolate) Php 18.785

White Chocolate Php 17.535

Coffee (Classic) Php 28.785

Creamer (Classic) Php 21.575

Milo (Classic) Php 25.785

Coffee (White Chocolate) Php 27.535

Creamer (White Chocolate) Php 20.325

Milo (White Chocolate) Php 24.535

Price Per Unit:

Price Per Unit = (Cost Per Unit × 0.4) + Cost Per Unit

Product Price

Classic (Chocolate) Php 26

White Chocolate Php 25

Coffee (Classic) Php 40

 Creamer (Classic) Php 30

Milo (Classic) Php 36

Coffee (White Chocolate) Php 39

Creamer (White Chocolate) Php 28

Milo (White Chocolate) Php 34

DISTRIBUTION

Chombs will be advertised on various platforms in order to swiftly capture the

attention of as many potential customers as possible. To expand market influence and

preserve direct sales with clients, Chombs will implement a direct distribution and

selective distribution strategy. The product will be directly marketed by the

manufacturers to the consumers using these tactics. The Chombs will also be distributed

in various locations such as bakeries, coffee shops, and confectionery stores. In the

designated sites, the Chombs will construct booths or stalls. Apart from selling directly to

consumers, the Chombs will be supplied through retailers, who will spread the product's

effect across the country and increase sales.

PROMOTION

To introduce Chombs to target customers, it will be promoted to the base area and

also in nearby locations through posters, word-of-mouth, and business cards or handouts.

Online promotion will also be managed through social media that the customer can view
 or follow like Facebook and Instagram (@chombs_chocobombs). The use of social

media can greatly contribute to introducing Chombs to different places and people as

most of the people, including the target customers, are more reliant on the internet.

Following the establishment of the company, Chombs would advertise its

products through customer reviews in order to entice new customers to purchase the

products. Video advertisements featuring the delectability of the products would be

introduced into social media platforms.

Chapter V

Operating plan

Ownership and management (Eguia) (Mendoza)

Figure 1: Organisational chart

Name of owners:
 Details of management and ownership:

Experience:

Resources and production (Hosoi)

Production

Production Process

Equipment Required

Sources of Materials

Estimated Production Cost

Legal issues (Velasquez)

Chapter VI

Capital structures (Sios-e)

Financial offerings (Gelvero)