1

ENERG

A Business Plan
Presented to the Faculty of
STI College – General Santos

In Partial Fulfilment
in the Requirements of
Accountancy, Business, and
Management

By

Abellanida, Queen Joanna

Bañas, Micah F.
Cagumbay, Killy Fe E.
Castillo, Jana Mae
Conjelado, Kristine
Dayday, Rhaffe R.
Grumacon, Maylynn
Jaud, Kean Patrick A.
Pat, Christopher B.
Peña, Frechiel Jane

March 2019
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APPROVAL SHEET
In partial fulfilment of the requirements for the program
Accountancy, Business, and Management, this Business Plan of the
company named “enerG”, prepared and submitted by ABM 2-2A, is
hereby recommended for oral defense.

Melochilen D. Betia, LPT

Adviser

Approved as partial fulfilment of the requirements for the

program Accountancy, Business, and Management by Committee on
Oral Examination.

Nur Ali Padasan, LPT, MIT Alberto D. Sta. Inglesia, LPT

Member Member

Marisa Z. Alcober Phd Razille Eden C. Fernandez, CPA

Member Member

Accepted as partial fulfilment for the requirements of

Accountancy, Business, and Management Strand.

Engr. Ann Gilyn B. Premarion, MIM, MAEd

Academic Head
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Live with cushy life

enerG® enterprise
Glan – Padidu, Glan, Saragani Provice, Region XII
enerG.com
enerG@facebook.com
energ@gmal.com
09972442269

For inquiries, please contact:

Rhaffe Dayday
Owner
0997244226
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BUSINESS PURPOSE

enerG enterprise is a company that aims to give opportunity for

jobless citizens within the nation. Philippines is located at the tropical
region of the globe wherein abundance of citrus fruits is present such
as calamansi – a Filipino term for Ambitious Citrofortunella microcarpa
or calamodin.

This company aims to give new job for farmers. Calamansi is an

indigenous fruit in the Philippines. The good thing about it, is that it
comes with a very cheap price. A kilo of it would usually just cost an
average of 15 pesos. Rodriguez (2018) have studied calamodin and
found out that it takes 2 years to bear fruits after planting. Since it is
a tropical fruit, Philippines is perfect to plant this type of plant. Taking
advantage of this commodity can give the farmers new option to
choose from. With this, one can say that this commodity has a
potential in contributing to national income.

Just as calamansi grow in abundance, so does the volume of

sugar. Sugar plays a major role in the business’ product. This means
that if the production department of the business demands more
sugar, the sugar industry will most probably fasten up production
wherein there is a higher possibility for job opportunities.

Another purpose is to learn things the owner barely knows. As

he embarks this journey of risk, he understands obstacles are already
set-up for him. Learning is one of the greatest purposes in imposing
this plan. Curiosity have led him to venture this path to open new
findings and amazing experiences.

Lastly and most importantly, to earn profit. It is the life of the

business and without it, the business cannot continue or sustain its
wellbeing. The owner, of course, needs a generating money to foster
and provide a better tomorrow for the enterprise and its stakeholders.
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Table of Contents

Tittle Page…………………………………………………… i
Approval Sheet……………………………….……………. ii
The Company Logo………………………………………. iii
Business Purpose……………………………………….…. iv
Table of Contents…………………………………………. v
List of Tables, Figures, Stores, and Eateries……… vii
Executive Summary……………………………………… ix

I. The Company and its Business……….………. 1

A. Company Ownership
B. Start-up Plan
C. Intellectual Property
D. Company Locations and Facilities
E. Vision and Mission Statement
F. Company Goals and Objectives
G. Industry Analysis

II. The Product………………………………………. 11

A. Product Description
B. Technology
C. Manufacturing Process
D. Competitive Comparison

III. The Marketing Plan……………………………. 14

A. Market Analysis
B. Marketing Strategy
C. Assessment of Marketing Effectiveness

IV. Organizational Plan……………………………. 20

A. The Management
B. Personnel Plan
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C. Organizational Structure

V. The Financial Plan…………………………….. 23

A. Loan Fund Dispersal Statement
B. Three-Year Income Projection
C. Pro Forma Cash Flow Statement
D. Projected Balance Sheet

VI. Potential Risk and Problems………………. 26

A. Possible Problems and Risks
B. Alternatives

VII. Appendices……………………………………… 30
A. References
B. Supporting Computations
C. Stores and Eateries
D. Agency Forms
E. Curriculum Vitae
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LIST OF TABLES, FIGURES, STORES, AND EATERIES

Tables
Table 1. Start-up Capital…………………………. 2
Table 2. Ingredients………………………………. 12
Table 3. Competitors………………………………. 15
Table 4. Satisfaction Rate………………………… 18
Table 5. Salaries and Wages Rate………………. 20
Table 6. Income Statement………………………. 22
Table 7. Statement of Cash Flow………………… 23
Table 8. Balance Sheet……………………………. 24

Figures
Figure 1. Business Establishment………………. 3
Figure 2. Map Location……………………………. 4
Figure 3. Package Supplier Establishment……. 9
Figure 4. Ingredients Supplier Location….…… 10
Figure 5. Flowchart….……………………………. 13
Figure 6. Population Segmentation……………. 14
Figure 7. Organizational Chart…………………. 20

Stores
Store 1.…………………… 35
Store 2.…………………… 36
Store 3.…………………… 36
Store 4.…………………… 36
Store 5.…………………… 37
Store 6.…………………… 37
Store 7.…………………… 37
Store 8.…………………… 38
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Store 9.…………………… 38
Store 10.…………………… 39
Store 11.…………………… 40
Store 12.…………………… 40
Store 13.…………………… 40
Store 14.…………………… 41
Store 15.…………………… 41
Store 16.…………………… 42
Store17.…………………… 43

Eateries
Eatery 1.…………………… 35
Eatery 2.…………………… 39
Eatery 3.…………………… 41
Eatery 4.…………………… 42
Eatery 5.…………………… 42
Eatery 6.…………………… 43
Eatery 7.…………………… 43
Eatery 8.…………………… 44
Eatery 9.…………………… 44
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EXECUTIVE SUMMARY

It is inevitable to say that the number of drinkers is increasing

each year due to the trend of alcoholic drinks. Most of these drinkers
are surprisingly young. We can see people enjoying their drinks in
parties, fiestas, or even outside of their houses. It has come to time
that food beverage companies gain millions of dollars out from
alcoholic beverages. A new company sprouting from its soil is
emerging to enter the industry, enerG.

enerG is a local owned company located at ECA BUILDING PAN-

PHILIPPINES National Highway, General Santos City. It is basically a
manufacturing business producing refreshing drinks that can be
enjoyed on any occasions.

The entity has its first product named Kelli, a cocktail mixture
of calamansi and rum. In the process of making Kelli, a start-up
capital of P212,509.48 is needed by the company. This consist of the
owner’s asset – the technologies used during the process,
manufacturing cost and expenses of the product.

Kelli contains 3% alcohol by volume inside a 350ml bottle. To

put it on more detailed description, the product is carbonated, sweet,
and strong. Furthermore, the entity manufactures its own alcohol
extracted from sucrose found in sugar canes or sugars.

Upon starting the business, the owner stands as the manager

and hired a total number of four employees to strive together to make
the entity possibly happen. The owner allocates funds for the
company from his personal savings, it is a way to lessen the
company’s obligation in future times. enerG identified four
competitors in producing Kelli. The company is well-prepared in
possible dilemma that may affect their existence. The people of the
company prepared an alternative for the risks and problems that they
may encounter.
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The business wants to empower its own Filipino products, like

calamansi, hoping that one day, it will have its exportation to other
regions within the Philippines. As the business grows, it aims to
influence Filipinos become more patriotic because of producing locally
made products. If the business will become successful, it will offer
opportunities to Filipinos and contribute to their community making it
a progressive community, and soon a progressive country.
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Chapter 1. THE COMPANY AND ITS BUSINESS

Introduction

Filipinos' wine consumption increases by 10 per cent each year.

In 1995, Filipinos were seen to be the number one wine drinkers in
Asia consuming a total of 146,000 bottles of wine that year (Valbuena,
2006).
Bioethanol is one of the much-consumed substances on earth.
World bioethanol consumption was about 100 billion litres, around
87% of which is consumed as fuel and others for liquors, medicine,
etc. It can be found in whiskey, beer, or wine (Biofuel Association
2009).
The company manufactures carbonated alcoholic drink with a
product named “Kelli”. Kelli means a beautiful and a very kind
woman; cares more about others than herself; and a very loving
mother when she has children (Urban Dictionary).
For now, Kelli has only one flavour extracted from calamansi.
With that thought in mind, this can be the key in contributing to the
Philippine economy by giving the unemployed an employment, and by
empowering our own Filipino product if the business continues to
prosper, grow, and develop.

A. Company Ownership
The company will be solely owned by Mr Rhaffe Dayday, an 18-
year-old young entrepreneur. The establishment is located at Glan–
Padidu, Glan, Sarangani Province. The business manufactures
carbonated liqueur – calamansi flavor – combined with alcohol
retrieved from sugars. The business is apparently a manufacturing
type.
Mr. Rhaffe Dayday is a graduate from STI College – General
Santos, INC., and have taken Accountancy, Business, and
Management (ABM) strand.
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B. Start-up Plan

The start-up cost consists of assets, expenses, and

manufacturing cost of the company within three (3) months.

Table 1. Start-up capital

ASSETS
LIST OF ASSESTS QUANTITY UNIT PRICE SUM
Cash 37,500.00
distiller 1 9,368.00 9,368.00
container 3 180.00 540.00
PVC Pipe 2 25.00 50.00
knives 2 65.00 130.00
juicer 2 40.00 80.00
Filter 2 40.00 80.00
Funnel 2 25.00 50.00
regulator 1 3,500.00 3,500.00
Gas Line 1 70.00 70.00
Carbonator 1 250.00 250.00
Hydrometer 1 150.00 150.00
table 1 750.00 750.00
chairs 4 100.00 400.00
light bulb 2 85.00 170.00
transportation vehicle 1 100,000.00 100,000.00
extension wire 2 65.00 130.00
Broom 1 55.00 55.00
dust pan 1 50.00 50.00
faucet 1 40.00 40.00
TOTAL 153,363.00
OPERATING EXPENSES (3 months)
Permits and Licenses 762.50
Salaries and Wages 39,000.00
Gasoline and Oil 2,400.00
Electricity 3,750.00
Water 1,500.00
Rent Expense-Facility Area 3,750.00
TOTAL 51,162.50
TOTAL MANUFACTURING COST (3months)
Raw Materials 217,105.20
Direct Labor 39,000.00
Overhead-Electricity 3,750.00
TOTAL 259,855.20
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As table 1 suggests, the company’s start-up capital is at Php

464,380.70. That is the total sum of assets (Php153,363.00);
operating expenses (Php 51,162.50); and total manufacturing cost
(Php 259855.20).

C. Intellectual property
The figure below is the logo of the company. The patent of which
will be worked out after the business is qualified enough to be
established.

D. Company Locations and Facilities

Referring to figure 1, the business is located at Purok Sta. Rita,
Glan-padidu, Glan, Sarangani Province. The facility can hold more
than enough space the business needs. It is already owned by the Mr.
Dayday and can start the business anytime soon.

Figure 1. Business Establishment

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Figure 2. Map Location

E. Mission and Vision Statement

This section describes the purpose of the organization and its

overall intention.

Mission: EnerG Enterprise aims to provide a financial

soundness to their investors and growth in the industry by
providing a good logistic, a cost leadership, innovative and a
good service focused on operating company. Customers’
fulfilment will meet by providing a good quality product
appropriate to each market segmentation. enerG will strive to
have a fair treatment and motivation, empowerment,
development, and a good relationship to its employees and
suppliers.

Vision: To be the premier operating company in food and

beverages category. Being the best means providing an
outstanding quality, service, and value to make our customers
contented and continuously give opportunity for the growth of
the business.
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F. Goals and Objectives

This part of the paper encompasses the short- and long-term
goals and objectives of the company that will serve as guide for its
employees and stakeholders to where they want to be in future years.

Goals:
-to be an incorporation known nationally.
-to be well-known corporation nationally.
-to give satisfaction to our loyal customer.

Objectives:
Short terms
-to survive within three (3) months.
-to double up production within a year.
-to upheave status.
Long terms
-to distribute its products nationally.
-for the company to become an incorporation.
-to become food and beverage manufacturing, INC.
-to have the community satisfaction and loyalty.
-to give exclusive service to our customers.

G. Industry Analysis
The production of beer and other liquors is one of the most
profitable industries in the Philippines. It was so called as “A Lucrative
Business”. San Miguel Corporation is currently the leading food and
beverage company in the entire Philippines, ranked number nine in
the Philippine’s Top Corporations of 1999 with a total sale of $766
(Valbuena, 2006).
To know enerG’s position amongst other industries, Porter’s five
Forces for analysis is used. The said analysis is comprised of 5 major
aspects:
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1. Competition in the industry

For this portion, three (3) widely known food and beverage
companies in the Philippines have been recorded. These are San
Miguel Corporation, Tanduay Distillers, Inc., and Emperador
Inc.

https://www.sanmiguel.com.ph/articles/our-
businesses

San Miguel Food and Beverage, Inc. consists of three

business groups: Beer and Non-alcoholic beverages; spirits; and
food.
Although they are widely known by their drinks, they also
venture to packaging; real-estate; oil refining & marketing;
power & energy; infrastructure; banking; and so much more.

https://tanduay.com/home/

Tanduay Distillers, Inc. is one of the oldest and biggest

brands in the distilled spirits category with a 99% share in the
rum category in the Phillipines. The company has 5 production
facilities HQ in Manila, the Barcolod Plant, the Cabuyao Plant,
and the El Salvador Plant.

https://logos.fandom.com/wiki/File:Emperador
_brandy_logo.png
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Emperador Inc. (EMP) is a holding company which

operates an integrated business of manufacturing, bottling and
distributing distilled spirits and other alcoholic beverages from
the Philippines and Europe.

2. Potential new entrants

As of now, there is no possible entrants in the industry.
Therefore, high profitability is very accessible. The market
structure is somewhat oligopoly, which means there are big
barriers that keep away new possible entrants.

3. Power of Suppliers
The industry has four (4) suppliers in General Santos
City. The suppliers are KCC distribution, Linde Gas Gensan,
and MAPI Packaging Depot.
The prices of the supplies by the companies are said to be
stable considering excise taxes levied from each particular
supply.

4. Power of Customers
The power of customers to shift from one product to the
other is unlimited. The product is basically elastic, which means
there are many substitutes. However, in terms of prices,
comparing it to our direct competitors, the company has the
upper hand. According to ALAK PRICE LIST (2018) San Miguel
Flavoured Beer costs 34 pesos SRP, while enerG’s is only
Php21.5 SRP.

5. Threat of Substitutes
It is very evident that the type of product being sold has
numerous substitutes. These substitutes are very threatening.
However, profitability is still achievable because the company
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does not depend on the price to make profit, instead, it tries to

penetrate the market by giving out high volume.
Customers always prefer cheaper price with same quality
as others.

Trend of the Industry

The demand for alcoholic drinks is growing at a faster rate
in emerging countries like India, China, Indonesia, and
Singapore. This is driving the demand for alcoholic drinks
industry.
The growing demand for premium alcoholic beverages is
one of the primary drivers for this market. Efforts by alcoholic
beverage manufacturers for strengthening distribution channels
and extension of purchase channels, such as online stores, and
convenience stores, are also contributing substantially to the
growth of the global alcoholic beverages market. New product
launching and innovations in alcoholic drinks are favoring the
growth of the industry. Growing demand for non-alcoholic
beverages like energy drink, RTD tea and coffee etc., owing to
health concerns, is expected to restrict the market growth in
future.

Opportunity
The major opportunity in this market is making alcoholic
drinks healthier like naturally sweetened, herb infused, gluten-
free alcoholic drinks. It will experience high demand from
consumers in the coming years (Global Alcoholic Beverage
market analysis).
The owner enters this kind of industry because it is on
demand and has a big probability to earn big profit. The growth
of this industry continues as new discoveries of organic
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materials are arising. Lastly, this industry gives opportunity to

the people making it a progressive community.

Supply and demand

As we know it, demand is a desire for one thing backed up
by purchasing power. The company can accommodate hundreds
of drinkers a day since it produces 218 bottles per day, that is.
Moreover, the price is not that impaling in the pockets of the
market. Rest assured that the market can afford such drink
since one bottle only costs Php 21.50. Unlike its direct
competitors (tanduay ice and San Miguel flavored beer) Kelli is
much cheaper and affordable.

Bambi Cagampang will be our supplier for white sugar

that costs ₱2,190.00 per sack and the yeast cost ₱90.00 per
pack with 500 grams. Bambi Cagampang is located at General
Santos City Market place. MAPI PACKING DEPOT will be our
supplier for our bottle. It is located at A1-2 ECA BUILDING
PAN-PHILIPPINES Highway, General Santos City.

Figure 3. Package Supplier Establishment

MAPI Packing Depot

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Figure 4. Ingredients Supplier Location

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Chapter 2. THE PRODUCT

This section of the paper gives comprehensive details in regard

to the concept, interventions, processes, situations, and much more
about the product.

A. Product Description

The product is a flavored carbonated cocktail. This cocktail is a

rum mixed and sweetened consulted by the nutritionist. Each bottle
has a volume of 350ml. It contains carbonated water, sugar,
calamansi juice, sodium benzoate, and ethyl alcohol. In percentage,
7.68 % calamansi juice, 7.04% alcohol, 76.95% carbonated water,
.01% sodium benzoate and 8.32% sucrose (sugar).

The liquid is dominantly yellow. When tasted, one can always

taste first its sweetness followed by its strength with a fizz. The bottle
is transparent, and the cap has a yellow-green color (refer to page 43).

B. Technology

Technology intervention only occurs during distillation.

The distiller distils the wash that were fermented for 8 days. It
separates the water and alcohol during this process. In addition to
that, it also purifies the alcohol since it heats up the wash to make
vapor.
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C. Manufacturing Process
The process of making the product can take up to ten (10) days
in total. Eight (8) days for fermentation, one (1) day for distillation and
calamansi juicing, and another one (1) day for mixing, carbonation,
and packaging.
As of now, the production process is quite slow since it mainly
depends on manpower. For every day, the manufacturing department
can produce up to 218 bottles of Kelli. The business will, hopefully,
someday venture and invest on technologies for greater production.
The equipment and ingredients nused in making the product are the
followings:

Table 2. Ingredients and Equipment

Equipment Ingredients
Distiller Sugar
Container Yeast
Air Lock Water
PVC Pipe Calamansi
Knife CO2
Filter
CO2 Tank
CO2 Regulator
Gas Line
Carbonator
Ball Lock Disconnect

Important reminders for workers:

• Always wear a hairnet before entering the facility.

• Always sanitize hands and cover with prescribed gloves.
• Never wear a slipper inside the facility. It is preferable to use
rubber shoes.
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Figure 5. Flowchart

D. Competitive Aspect.

Kelli has the upper hand in competition when it comes to price

and quality. For 21.50 pesos, one can already afford a 350ml Kelli to
refresh oneself from the ever-heating climate in General Santos City.
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Chapter 3. THE MARKETING PLAN

This chapter addresses the details of the market analysis, sales,

advertising, and public relations campaigns.

A. Market Analysis
Segmentation
We based our total population in the Philippine Statistics
Authority’s (PSA) census in the year 2010 for General Santos City, the
total population of GenSan in that year was 536,566 individuals.
The population is divided into three brackets, ages from 1-17
(minors); ages from 18 to 59 (young adults to middle aged); and over
59 years old (seniors/baby boomers).

Figure 6. Population Segmentation

In the total population, target market is those within the

bracket of 18 to 59 years old, which means a total of 276,795
individuals. However, the number is too great. Therefore, it is
assumed that 60% of which are non-drinkers, which leaves us with
only 110,718 initial target market.
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To determine the final target market, survey was utilized. The

survey was conducted on February 23, 2019 at Plaza General, General
Santos City. Free taste booth was assembled, and free drinks was
given out. Two (2) out of 100 respondents said that they would not
buy our product. Ten (10) out of 100 say maybe, and 88 of 100
agreed that they are interested in buying the product.
In determining our final target market, only those who said yes
will be included. Out of 110,718 initial target market, only 88% of it is
considered as final target market. Therefore, we have a final target
market of 97,431.84 individuals.

Competitors

Table 3. Competitors

330ml Tanduay Ice by Tanduay Distillers, INC.

Strength Weakness
-Has a secured market share of 25.2% -Has an SRP ranging
by its company from 27.5 – 37 pesos
-Widely known within the country per bottle
-Has established numerous -Has many substitutes
advertisements together with famous Very inconvenient to
celebrities carry when bulk buying.
-Consists of varieties of flavors like
Cranberry, Illusion Alcomix, Red
Mirage, Yellow Paradise, Plain
Alcomix, Zero, Mule, and Lemonade.
330ml San Miguel Flavoured Beer by San Miguel Food and
Beverage, INC.
Strength Weakness
-Its Company is known to be the -Has an SRP of 39.75
leading food and Beverages Company per bottle.
in the Philippines holding up to 95% -Very inconvenient
market share when bought in bulk
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-Widely known within the Philippines

-Consists of two flavours, calamansi
and apple
-Has already established its own
advertisements in mass media
Products of Coca-cola Company – Sprite, Royal, and Coke.

Strength Weakness
-Has a market share of 48.6% globally -Not really appealing to
-Non-stop advertisements on those people who prefers
Televisions with popular celebrities drinks with alcohol
like Daniel Padilla
Maria Clara
Strength Weakness
-Very known In the Philippines due to -Has a higher VAT
its sweet flavour made from grapes because it is an
imported product from
other country which
results to higher price
-Does not have a 330ml
bottle
-Has a price of 212
pesos for most retail
stores, others are higher
than that
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B. Market Strategy
Method of Sales and Distribution
For the method of selling, the business will act as direct
distributors. The manufacturing facility is at Glan Sarangani. It will
distribute its products around GenSan prospected retail stores.
The enterprise can give them a discount in every bottle they
buy. However, they must avail not less than 20 pcs of the product.

Packaging

Glass bottles are used that costs Php5.35 per

piece. The label costs 9 cents per piece. MAPI
packaging depot is the supplier of the business,
located at A1-2 ECA BUILDING PAN-PHILIPPINES
Highway, General Santos City.
The bottle’s name is M7477

Pricing

The cost of production within a year is ₱1,039,420.80, and the

manufacturing department can produce 68,016 bottles of Kelli in a
year. That means the cost of one bottle of Kelli is ₱15.28. For the SRP,
price is set at Php21.50. Profit margin is set at 25% and 75% from the
unit cost plus one (1) peso for our retailers. It is up to them if they
choose to make the price at 22 pesos to their customers.
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Sales Strategy, Sales Promo, and Advertising

As said in the previous pages, the company will act as direct
distributors to retail stores around GenSan, making the mode of
income a direct sale. Sales promo occurs when stores avail a
minimum purchase of 20 bottles of Kelli. The company can give them
Php1.00 off in every bottle, leaving the distributor with ₱5.22 profit
margin in every bottle sold.
The business is just starting, and the most sophisticated way to
spread the word is social media. After making a promotional video of
the product, it will be released to the public and put all information
just like the company website, contact number, facebook page and
retail stores that sells the company’s product.
For the traditional approach in marketing strategy, the business
will invest into free tasting approach around masses of people during
fiestas. General Santos plaza and oval plaza are the most suited place
to conduct marketing. With, words of mouth will follow right after.

C. Assessment of Marketing Effectiveness

On February 23, 2019 at Plaza Heneral Santos, 4:00 PM, the
firm had conducted a survey to assess the effectiveness of its
marketing to the public. It showcased its product to the public with a
free taste session that lasted 4 hours. They have gathered 100
respondents and countless tasters. Considering the age restrictions
for alcoholic drinks, the team only gave free tastes for those who are
legal enough to try, 18 and over.

Table 4. Satisfaction Rate

Would you buy this product?

No Maybe Yes

2% 10% 88%
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Table above shows that there is a higher probability for

purchases from the market. 88 respondents would buy the product,
10 of them say maybe, and only 2 of them say no. Therefore, most
people have said yes in buying the product.
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