Coffee Shop Feasibility Study

LIPA CITY COLLEGES GRADUATE SCHOOL 1
DEE CUP
(COFFEE TECH PUB)
A FEASIBILITY STUDY PRESENTED TO THE FACULTY OF

COLLEGE OF BUSINESS EDUCATION & ACCOUNTANCY
LIPA CITY COLLEGES
In Partial Fulfillment
of the Requirements for
Master in Business Administration
DONA PILAPIL
AUGUST, 2022
Lipa City Colleges

G. A. Solis St., Lipa City Batangas
Telephone Number: 756-1943
Fax Number: 756-3768 local 300
www.lipacitycolleges.net
SUMMARY OF THE PROJECT
PROJECT BACKGROUND
The proposed name of the project is “DEE CUP (Coffee Tech Pub)”. It was
named DEE CUP because it has been a trend to use names for business name,
the nickname of the proponent of this study is DEE and CUP signifies servings of
drinks, which is usually coffee, and when combined, it will sound like “DECAF”
which is a type of coffee drink. Moreover, for its second business name which is
“Coffee Tech Pub” because unlike other coffee shops within the region it is the
prime mover of the first Techno-Coffee Shop not just in Lipa City, Batangas but in
Calabarzon as a whole. It is located at The Outlets, Lima Technology Center,
Special Economic Zone, Lipa, Batangas.
MARKETING FEASIBILITY SUMMARY
The marketing strategies and the understanding of the market will provide
the information that will better comprehend the customers need and preferences.
With this understanding, the business will be able to offer the kind of service or
products the customer will be satisfied with. Hence, the market understanding will
lead to the success of the business.
DEE CUP will focus its marketing efforts to the two groups of their market.
The first group is familiar with the Internet and desires a progressive and inviting
atmosphere where they can get out of their offices or homes to enjoy a great cup
of coffee, internet access and entertainment. This group is made up of students
from the University nearby and business people from nearby city offices and
professional centers.
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The second group is not as familiar with the Internet. This group is made up
of seniors. Seniors represent a growing segment of Internet users. They use the
Internet to communicate with friends and family and they will be regular users of
the DEE CUP service.
CHAPTER I
INTRODUCTION
Project Background Rationale

The demand for internet access are undeniably high. In this technological
era, almost everybody uses internet for their work, assignments, business
transactions and others.
Moreover, batangueno’s are also coffee lovers. Everywhere in the city you
can find coffee and food shops where you can dine and relax.
DEE CUP will establish its brand in the city of Lipa, creating a successful
business that enables us to fulfill our underlying mission: to provide communities
with the ability to access the internet and entertainment for relaxation, enjoy a cup
of coffee and share life experiences in a comfortable environment.
DEE CUP, unlike typical coffee shops, provides a unique forum for
communication and entertainment through the medium of the internet, gaming and
entertainment. DEE CUP is the answer to an increasing demand. The public wants
a place to socialize and share these experiences with friends and colleagues and
a place for relaxation and access to the methods of communication and volumes
of information now available on the internet.
The physical structure of the coffee shop is a two-story coffee shop, first
floor is centralized air conditioned and the second floor is an area for gaming,
business conferrence, and movie watching).
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There are rooms to be placed within the second floor for entertainment
(movie, music and gaming). Some of the areas are in the first floor are associated
for those who needs a quiet and romantic moment.
Differentiating ourselves from other more traditional cafes has given us the
ability to effectively compete on the beverage and pastry side of the business with
the already entrenched competition. Sales are brisk and in-line with projections.
The Internet, gaming and entertainment services side of the business will
be our absolute competitive advantage to the local competitors in the area. Since
students love to gather for late-night sessions, nearby seniors/retirees are getting
a glimpse of what the internet offers and local business people love to stop by for
a quick bite and an email check.
Strategically, DEE CUP is located at the heart of the city, just a walking
distance to the main places like hospitals, schools, hotels and malls to
accommodate the customers craving for coffee with their choice of lifestyle.
Objectives
This study will determine the feasibility of the DEE CUP in the City of Lipa.
Specifically, it aims to achieve the following objectives:
a. One of the leading branded techno coffee shop in the city and be known on
the neighbouring provinces because of its new feature of an internet café and
coffee shops in one.
b. Attracts local consumers taste and loyalty.
c. 10% grow of annual sales.
d. Sustains and maintains the quality of products and services.
e. Determines the marketability, technical feasibility and financial viability of
the proposed project.
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Description of Proposed Project
The proposed project is a combination of café and a coffee shop.

The Internet has become a point of conversation and entertainment in
almost all social groups. People are talking about sites they visited, business
people are talking about Internet-based businesses, and kids are talking about the
latest Internet clubs and chat rooms. People like to communicate their Internet
experiences with their friends, colleagues, and family. However, it can be difficult
to do it in front of a computer terminal at the office or in the family study. A
comfortable place to gather and share these experiences is becoming a real need.
DEE CUP will provide:
• A meeting place for business people interested in sharing their Internet-based
business ideas.
• A social hub for students and young people interested in sharing a beverage
and their Internet experiences with friends.
• A place as well for students and young people to gather in sharing a cup of
coffee and their internet-based entertainment such movie watching and online
gaming with their friends.
• A place for nearby seniors to gather and learn about the powers of the Internet
and better communication methods.
DEE CUP will provide its customers with full access to the internet, common
computer programs and equipment and movie watching. Some of the
entertainment, internet and computing services available to DEE CUP customers
are listed below:
• Customer can access social media applications.
• Access to popular software applications, like Adobe Photoshop and
Microsoft Word.
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• Access to online games for entertainment.

• Customer can have a movie marathon of the latest movies both local and
international.
DEE CUP will build a client base familiar with its services. The computers,
Internet access, and entertainment wouldn't mean half as much if taken out of the
environment DEE CUP will provide. Good coffee, specialty drinks, bakery goods,
and a comfortable environment will provide DEE CUP customers with a home
away from home; a place to enjoy the benefits of computing in a comfortable and
well-kept environment.
Type of Business Organization
A partnership is an association of two or more persons to carry on, as co-

owners, a business and to share its profits and losses. The partnership may come
into existence by means of an agreement between two or more persons desirous
of forming a partnership.
In a partnership, two or more people share ownership of a single business.
Like proprietorships, the law does not distinguish between the business and its
owners. The partners should have a legal agreement that establishes how
decisions will be made, how profits will be shared, how disputes will be resolved,
how future partners will be admitted to the partnership, how partners can be bought
out or what steps will be taken to dissolve the partnership when needed.
DEE CUP is a partnership type of business entity because it is manned
seven partners.
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Proposed Name of the Project
The proposed project shall be registered under the name “DEE CUP
(Coffee Tech Pub)”. The name DEE CUP (Coffee Tech Pub) was formulated
because of its feature and characteristic of the café which is the combination of
coffee shop and internet café.
Location of the Project
DEE CUP will be located at The Outlets, Lima Technology Center, Special
Economic Zone, Lipa, Batangas.
Strategically, DEE CUP is located at the heart of the city, just a walking
distance to the main places like hospitals, schools, hotels and malls to
accommodate the customers craving for coffee with their choice of lifestyle.
Figure 1. Location Map
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Company Logo
Sampling design
The researcher gathers data thru handling out questionnaires to selected

respondents. They consist of young professionals, professionals, students,
businessmen, senior and other respondents. There are 120 respondents which
are among the to be the client or customer of DEE CUP were chosen to help the
researcher determine the acceptability of the proposed project.
The researcher adopted the the purposive sampling design to evaluate the
characteristics from the target respondents which will give the best possible result
of the survey.
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Research design
Descriptive research design will be used in this study. It involves the

collection of data in order to test the hypothesis or to answer the questions
concerning the current status of the respondents under study.
Instrumentation and validation
The instrument used in this study is questionairre consisting items about the
selected personnel characteristics of the respondents. Those characteritics
included gender, age, education, occupation and monthly income. It also, provide
buying behaviour of respondents toward the choice of cafe and coffee shops. The
questionaire goal is to determine the acceptability and feasibility of the proposed
project to the respondents. It is also designed to evaluate the level of willingness
of the respondents to patronize the products of the proposed project.
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CHAPTER II
MARKETING FEASIBILITY
Market Description
DEE CUP is faced with the exciting opportunity of being the first-mover in
the local cyber entertainment-cafe market. The consistent popularity of coffee,
combined with the growing interest in the internet, gaming and movies has been
proven to be a winning concept in other markets and will produce the same results
here.
All target markets for the DEE CUP service are growing at a relatively fast
pace. We're faced with a large number of potential customers, and we're offering
a needed service.
DEE CUP customers can be divided into two groups. The first group is
familiar with the Internet and desires a progressive and inviting atmosphere where
they can get out of their offices or homes to enjoy a great cup of coffee, internet
access and entertainment. This group is made up of students from the University
nearby and business people from nearby city offices and professional centers.
The second group is not as familiar with the Internet. This group is made up
of seniors. Seniors represent a growing segment of Internet users. They use the
Internet to communicate with friends and family and they will be regular users of
the DEE CUP service.
Demographic Breakdown of Target Market:

✓ Urban dwellers
✓ Ages:18-65
✓ Gender: Men & Women
✓ Income: Depends on life-stage, but relatively high
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✓ Occupation: Depends on life-stage, ranges from college students, faculty

members, as well as persons in managerial, executive, professional
positions and retirees.
✓ Values: People who care about their employees, global issues, and the
environment for example. They also care a great deal about having a high
standard for customer service.
✓ Technology: Our target market consists of many internet users and
technical savvy. These people are ones that love to get newest technology
as soon as it is available. Thus, DEE CUP promoting itself on social media
networking sites.
DEMAND AND SUPPLY ANALYSIS
Target Market Growth:
University students continue to grow at a steady pace, at nearly 19.73%

Office workers in the city and nearby professional buildings continue to add
value, growing at 17.29%
Seniors/retirees are becoming an important part of the city business, growing
at almost 5.68%
Teens continue to play a major role in city foot-traffic, growing at 20.37%
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Target Market Growth
Office
University Workers
Students 17.29%
19.73%
Seniors Teens
6.68% 20.37%
Percentage of the market growth is based on the total population of

407,010 (Lipa City Population as of 2022)
Target Market Current Distribution:

University students continue to grow at a steady pace, at nearly 40%
Office workers in the city and nearby professional buildings continue to add
value, growing at 27%
Seniors are becoming an important part of the city business, growing at almost
13%
Teens continue to play a major role in city foot-traffic, growing at 20%
Target Market Current

Distribution
Teens
20%
University
Seniors Students
13% 40%
Office
Workers
27%
Percentage of the market current distribution is based on the total population who
rampantly go to coffee shops.
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Market Needs
The rapid growth of the internet, online services, gaming and entertainment
such as movie watching that has been witnessed worldwide is only the beginning
of a long-lived trend towards an economy built on the infrastructure of the internet,
gaming and entertainment. The potential growth of the internet is enormous, to the
point where one day, a computer terminal with an online connection will be as
common and necessary as a telephone or toilet. This may be 5 or 10 years down
the road, but for the next five years, the online service provider market is sure to
experience tremendous growth. Establishing itself as the first cyber entertainment
-cafe in the area, DEE CUP will enjoy the first-mover advantages of name
recognition and customer loyalty. Initially, DEE CUP will hold a 100 percent share
of the cyber entertainment-cafe market locally. In the next five years, competitors
will enter the market. DEE CUP has set a goal to consistently maintain a market
share of greater than fifty percent.
Market Trends
The Internet has become a point of conversation and entertainment in

almost all social groups. People are talking about sites they visited, business
people are talking about Internet-based businesses, and kids are talking about the
latest Internet clubs and chat rooms. People like to communicate their Internet
experiences with their friends, colleagues, and family. However, it can be difficult
to do it in front of a computer terminal at the office or in the family study. A
comfortable place to gather and share these experiences is becoming a real need.
DEE CUP will provide:
➢ A meeting place for business people interested in sharing their Internet-
based business ideas.
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➢ A social hub for students and young people interested in sharing a beverage
and their Internet experiences with friends.
➢ A place as well for students and young people to gather in sharing a cup of
coffee and their internet-based entertainment such movie watching and
online gaming with their friends.
➢ A place for nearby seniors to gather and learn about the powers of the
Internet and better communication methods.
Market Growth
The cyber entertainment-cafe hasn't come to this area yet, but similar
services are growing rapidly on a global scale. Business people use the Internet
services to catch up on email and communications with their family, and tourists
do the same. Our area supports a population that has many of the same needs
and interests of this larger group.
The student population continues to grow as the University grows in
popularity with high-school graduates from out of city. These tend to have money
and an interest in up-scale social centers. Business in the city area is on the rise.
DEE CUP will target these groups with social media.
The DEE CUP target market growth we as follows: University students
continue to grow at a steady pace, at nearly 19.73%, Office workers in the city and
nearby professional buildings continue to add value, growing at 17.29% annually,
Seniors are becoming an important part of the city business, growing at almost
5.68% and the Teens continue to play a major role in city foot-traffic, growing at
20.37%.
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Threats & Competition
There are coffee shops found in Lipa City. All of these coffee shops are
direct competitors because they produce and sell to the same target market as
DEE CUP.
Beanleaf
Purple Beetle Café
Taza Mia
The Coffee Bean & Tea Leaf - Lipa
Cafe de Lipa
SWOT Analysis
The SWOT analysis provides us with an opportunity to examine the internal

strengths and weaknesses DEE CUP must address. It also allows us to examine
the opportunities presented to DEE CUP as well as potential threats.
DEE CUP has a valuable inventory of strengths that will help it succeed.
These strengths include: a knowledgeable and friendly staff, state-of-the-art
computer hardware, and a clear vision of the market need. Strengths are valuable,
but it is also important to realize the weaknesses DEE CUP must address. These
weaknesses include: a dependence on quickly changing technology, and the cost
factor associated with keeping state-of-the art computer hardware.
DEE CUP strengths will help it capitalize on emerging opportunities.
These opportunities include, but are not limited to, a growing population of daily
Internet users, and the growing social bonds fostered by the Internet based
entertainment. Threats that DEE CUP should be aware of include, the rapidly
falling cost of Internet access, and emerging local competitors.
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Strengths
a. Knowledgeable and friendly staff. We've gone to great lengths at DEE

CUP to find people with a passion for teaching and sharing their Internet
based entertainment experiences. Our staffs are both knowledgeable and
eager to please.
b. State-of-the art equipment. Part of the DEE CUP experience includes
access to state-of-the-art computer equipment. Our customers enjoy
beautiful flat-screen displays, fast machines, and high-quality printers.
c. Up-scale ambiance. When you walk into DEE CUP, you'll feel the
technology. High backed mahogany booths with flat-screen monitors inset
into the walls provide a cozy hideaway for meetings and small friendly
gatherings. Large round tables with displays viewable from above provide
a forum for larger gatherings and friendly "how-to" classes on the Internet.
Aluminum track lighting and art from local artists sets the mood. Last, but
not least, quality cappuccino machines and a glass pastry display case
provide enticing refreshments.
d. Clear vision of the market need. DEE CUP knows what it takes to build
an upscale cyber entertainment cafe. We know the customers, we know
the technology, and we know how to build the service that will bring the
two together.
Weaknesses
a. A dependence on quickly changing technology. DEE CUP is a place for

people to experience the technology of the Internet. The technology that is
the Internet changes rapidly. Product lifecycles are measured in weeks, not
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months. DEE CUP needs to keep up with the technology because a lot of
the DEE CUP experience is technology.
b. Cost factor associated with keeping state-of-the-art hardware. Keeping
up with the technology of the Internet is an expensive undertaking. DEE
CUP needs to balance technology needs with the other needs of the
business. One aspect of the business can't be sacrificed for the other.
Opportunities
a. Growing population of daily Internet users. The importance of the

Internet almost equals that of the telephone. As the population of daily
Internet users increases, so will the need for the services DEE CUP offers.
b. Social bonds fostered by the new Internet communities. The Internet is
bringing people from across the world together unlike any other
communication medium. DEE CUP will capitalize on this social trend by
providing a place for smaller and local Internet communities to meet in
person. DEE CUP will grow some of these communities on its own by
establishing chat areas and community programs. These programs will be
designed to build customer loyalty.
Threats
a. Rapidly falling cost of Internet access. The cost of access to the Internet
for home users is dropping rapidly. Internet access may become so cheap
and affordable that nobody will be willing to pay for access to it. DEE CUP
is aware of this threat and will closely monitor pricing.
b. Emerging local competitors. Currently, DEE CUP is enjoying a first-
mover advantage in the local cyber entertainment-cafe market. However,
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additional competitors are on the horizon, and we need to be prepared for

their entry into the market. Many of our programs will be designed to build
customer loyalty, and it is our hope that our quality service and up-scale
ambiance won't be easily duplicated.
Service Offering
DEE CUP will provide its customers with full access to the internet, common
computer programs and equipment and movie watching. Some of the
entertainment, internet and computing services available to DEE CUP customers
are listed below:
• Customer can access social media applications.
• Access to popular software applications, like Adobe Photoshop and
Microsoft Word.
• Access to online games for entertainment.
• Customer can have a movie marathon of the latest movies both local and
international.
DEE CUP will build a client base familiar with its services. The computers,
Internet access, and entertainment wouldn't mean half as much if taken out of the
environment DEE CUP will provide. Good coffee, specialty drinks, bakery goods,
and a comfortable environment will provide DEE CUP customers with a home
away from home; a place to enjoy the benefits of computing in a comfortable and
well-kept environment.
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Keys to Success
The keys to the success for DEE CUP are:

The creation of a unique, innovative, upscale atmosphere that will
differentiate DEE CUP from other local coffee shops and future Internet
cafes.
The establishment of DEE CUP as a community hub for socialization and
entertainment.
The creation of an environment that won't intimidate the novice user. DEE
CUP will position itself as an educational resource for individuals wishing to
learn about the benefits the Internet has to offer.
Great coffee and bakery items.
Critical Issues
The risks involved for DEE CUP are:

❖ Will there be a continuing demand for the services offered by DEE CUP?
❖ Will the popularity of the Internet continue to grow, or is the Internet a fad?
❖ Will individuals be willing to pay for the services DEE CUP offers?
❖ Will the cost of accessing the Internet from home drop so significantly that
there will not be a market for Internet Cafes such as DEE CUP?
External Environment
a. Technological Environment
Smart phones, interactive TV, social networking, and other new forms of
media are changing the way people connect. Technology is changing and
innovating faster than ever before. Laptops are getting lighter, smaller, faster, and
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come more storage. Screen resolution is increasing and people demand to see
visually pleasing web site.
b. Social/Cultural Environment
People get sick of the traditional ways other coffee shops advertise.
They don’t like the clutter in advertising and this is huge for DEE CUP customer.
Social networking has taken over and controls the way people connect with each
other and businesses.
c. Political/Legal Environment
In Philippines, Democratic ideas are in power. This means that the
democratic government wants to limit monopolies and domination of industries.
This is something that needs to be followed. The social responsibility activities DEE
CUP participates in counter much of this and put the coffee shop in good standing.
d. Economic Environment
The economy has been relatively resilient in the first quarter of 2017.
Predictions of near future are looking good, slowly giving more confidence to
consumers, economic spending.
Macro Environment
The retail coffee industry in this area experienced rapid growth at the
beginning of the decade and is now moving into the mature stage of its life cycle.
Many factors contribute to the large demand for good coffee: The student
population at the University is a main source of demand for coffee retailers; the
cold and damp climate is extremely conducive to coffee consumption.
The popularity of the Internet is growing exponentially. Those who are
familiar with the information superhighway are well aware of how fun and addicting
surfing the Internet can be. Those who have not yet experienced the Internet need
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a convenient, relaxed atmosphere where they can feel comfortable learning about
and utilizing the current technologies. DEE CUP seeks to provide its customers
with affordable Internet and entertainment access in an innovative and supportive
environment.
Marketing Strategy
DEE CUP has three main strategies.

The first strategy focuses on attracting novice Internet users and
entertainment seekers. By providing a novice-friendly environment, DEE CUP
hopes to educate and train a loyal customer base.
The second and most important strategy focuses on pulling in power
Internet users and provides entertainment activities for relaxation. Entertainment
seekers and power internet users are extremely familiar with the Internet and its
offerings. This group of customers serves an important function at DEE CUP.
Power users have knowledge and web-browsing experience that novice Internet
users find attractive and exciting.
The third strategy focuses on building a social environment for DEE CUP
customers. A social environment that provides entertainment will serve to attract
customers that wouldn't normally think about using the Internet. Once on location
at DEE CUP, these customers that came for the more standard entertainment
offerings will realize the potential entertainment value the internet can provide.
Mission
DEE CUP provides communities with the ability to access the Internet and
entertainment for relaxation, enjoy a cup of coffee, and share Internet experiences
in a comfortable environment.
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DEE CUP marketing will consistently build on this mission. Everything we

do, from the pricing structure for our services to the ambiance we create, must be
done with this mission in mind. We cater to: city business people, traveling
business people, university students, and seniors. Our ambiance and our services
are designed for this clientele and our marketing efforts are focused on capturing
this market.
Marketing Objectives
DEE CUP marketing objectives for the first three years of operation include:
Diversify the service offering to insulate the business against fluctuations in
any one component of the revenue stream.
Maintain a staff of enthusiastic employees excited to share their Internet
knowledge with DEE CUP customers.
Build the DEE CUP brand to the point where it becomes a household word
in the area.
Target Marketing
DEE CUP intends to cater both to people who want a guided tour of the
internet and to experienced users eager to indulge their passion for computers in
a social setting as well as those who are entertainment seekers for relaxation.
Furthermore, DEE CUP will be a magnet for local and traveling professionals who
desire to work or check their email messages in a friendly atmosphere. These
professionals will either use DEE CUP PCs, or plug their own notebook computers
into Internet connections. DEE CUP target market covers a wide range of ages:
from members of "Generation X," who grew up surrounded by computers, to
seniors from local retirement centers.
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Our primary target markets include:

✓ Students. The large student population will become an important part of
the DEE CUP customer base. The student population continues to grow
with the success of the University. Evening entertainment, access to the
Internet, and the up-scale ambiance will attract this demographic.
✓ Business people. The city business community is growing rapidly with the
addition of a new Compu-tech building and a flurry of new professional
centers. DEE CUP will provide a perfect setting for business meetings. It
will also give traveling business people an opportunity to plug their laptops
into the DEE CUP network to check email communications.
✓ Seniors/Retirees. Represent a growing population of Internet users. The
DEE CUP staff will hold brief classes in the off hours to educate seniors on
how to use the Internet to communicate with friends and family. This will
build a regular base of customers that wouldn't typically use the services
offered by DEE CUP.
Positioning
DEE CUP will position itself as an upscale coffee house, Internet service
and entertainment provider. Business people of all types will use DEE CUP as a
place to hold meetings and catch-up on email communications. Students from
nearby city housing centers will use DEE CUP as a place to socialize and discuss
the latest Internet sites, go on gaming and movie watching. Seniors will experience
the Internet for the first time at DEE CUP. Programs designed to teach newcomers
about the power of the Internet will help build customer loyalty and spread the word
about the services DEE CUP offers.
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Strategy Pyramids
The following are the three key strategies DEE CUP will focus on:
DEE CUP first strategy focuses on attracting novice Internet users. DEE
CUP plans on attracting these customers by:
• Providing a novice-friendly environment. DEE CUP will be staffed by
knowledgeable employees focused on serving the customer's needs.
• A Customer Service desk will always be staffed. If a customer has any type of
question or concern, a DEE CUP employee will always be available to assist.
DEE CUP second strategy will be focused on attracting entertainment

seekers and power Internet users who will provide an important function at DEE
CUP. DEE CUP plans on attracting this type of customer by:
• Providing the latest in computing technology.
• Providing scanning and printing services.
• Providing access to powerful software applications.
The third strategy focuses on building a social environment for DEE CUP
customers. A social environment that provides entertainment will serve to attract
customers that wouldn't normally think about using the Internet. Once on location
at DEE CUP, these customers that came for the more standard entertainment
offerings will realize the potential entertainment value that DEE CUP can provide.
Marketing Mix
DEE CUP marketing efforts will focus on building a loyal base of customers
that will use the services provided on an almost daily basis.
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Services and Service Marketing

As the popularity of the Internet and entertainment seekers continues to
grow at an exponential rate, easy and affordable access to the information
superhighway is quickly becoming a necessity of life. DEE CUP provides the local
community with the ability to access the Internet, go on gaming, catch on latest
local and international movies, enjoy a cup of coffee, and share entertainment
experiences in a comfortable environment. People of all ages and backgrounds
will come to enjoy the unique, upscale, educational, and innovative environment
that DEE CUP provides.
Pricing
DEE CUP adopted cost plus pricing strategy to price its products and
services to have a solid pricing strategy.
Determining a fair market, hourly price for online use is more difficult
because there is no direct competition from another cyber-cafe in our area. DEE
CUP will adopt the product-bundle pricing.
Promotion
The DEE CUP plan used combination of media advertising and direct
marketing tools to communicate with current and prospective target market.
The propose promotion goal will be one differentiation and promotion
activities will help reinforce the DEE CUP positioning status.
A Few Specific Marketing Efforts:
• Local TV spots
• Local Radio Spots
• Online Advertising
• DEE CUP Events
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Service
This topic is a critical reminder of the fact that DEE CUP is a service
business. The success of our business depends upon the quality of the service we
offer and delivering that service consistently. DEE CUP is dedicated to delivering
this quality service.
Dedicated to Quality Service Programs:
We've gone to great lengths at DEE CUP to find people with a passion. Our
staffs are both knowledgeable and eager to please. An excess of staff
members will consistently be on hand to provide service to DEE CUP
customers. Performance will be frequently evaluated both internally and
through customer surveys.
A highly valued member of the DEE CUP staff will be the "Customer
Happiness Representative." This individual will be available forty hours a
week to monitor the level of happiness amongst DEE CUP customers. This
individual will be responsible for: developing customer satisfaction
programs, monitoring happiness levels, responding to customer concerns,
and the general well-being of every DEE CUP customer.
Controls
The goal of this marketing plan is to outline the strategies, tactics, and
programs that will make the sales goals outlined in the DEE CUP business plan a
reality in the year 2023. We have these marketing obstacles to face:
The creation of a unique, innovative, upscale atmosphere that will
differentiate DEE CUP from other local coffee shops and future Internet
cafes.
The establishment of DEE CUP as a community hub for socialization and
entertainment.
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Contingency Planning
This marketing plan is just that, a plan. Plans don't always work out and we
have to be ready to deal with the likelihood that DEE CUP won't make good on the
projections outlined in this plan. We also have to prepare ourselves for
overwhelming success.
The following are some possible scenarios:
1. Revenues miss projections - We have to be prepared for this possibility.
If we miss our projections, we simply have to re-double our marketing efforts. The
danger in this scenario is that the first reaction to missed projections is to decrease
spending, particularly marketing expenses. We can't do that! We have to get our
message out to the target market, and we can't do that if we stop spending on
marketing. Additional capital infusions may become necessary and that possibility
is detailed in the business plan.
2. Internet side of business plays a lesser role - Our customers might not
be willing to pay for Internet access or DEE CUP memberships as Internet access
costs and hardware costs continue to fall. If this scenario materializes, we will need
to move our focus to beverages and pastry items, perhaps even providing deli-
style lunches. Internet services in the scenario would still play an important role in
attracting customers; we'd just have to charge less and move our numbers around
to accommodate this trend.
Implementation
Our marketing efforts will be focused on building the image outlined above.
We have milestones to meet for the business. It will be critical to use this marketing
plan as living/working documents. We can't allow them to sit in a file. It must be
used as a map for the future success of DEE CUP.
Lipa City Colleges

Advertising Milestones 2022
Radio Advertisement
TV Advertisement
Online/Website Adv.
Direct Marketing
Customer Survey
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
Advertising Start Date End Date Budget
TV Ad Creative 05/01/2022 08/30/2022 35,600.00
Radio Spot 1 Creative 02/01/2022 02/28/2022

04/01/2022 04/30/2022 30,000.00
06/01/2022 06/30/2022
Radio Spot 2 Creative 08/01/2022 08/31/2022
10/01/2022 10/31/2022 30,000.00
12/01/2022 12/31/2022
Online Ad Creative 01/01/2022 12/31/2022 25,000.00
Other 3,300.00
Total Advertising Budget

123,900.00
Lipa City Colleges

Direct Marketing Start Date End Date Budget

DEE CUP 01/01/2022 01/01/2022
Event 1 Creative 02/10/2022 02/14/2022
03/01/2022 03/14/2022 27,000.00
05/01/2022 05/14/2022
DEE CUP 07/01/2022 07/14/2022
Event 2 Creative 09/01/2022 09/14/2022 35,000.00
11/01/2022 11/14/2022
12/01/2022 12/31/2022
Other 10,000.00
Total Direct Marketing

Budget 72,000.00
Other Start Date End Date Budget
Customer Survey 01/01/2022 01/31/2022

06/01/2022 06/30/2022 20,000.00
12/01/2022 12/31/2022
Other 10,900.00
Total Other Budget 30,900.00
Totals 226,800.00
Lipa City Colleges

DEE CUP Sales and Cost of Sales Projection
2022 2023 2024 2025 2026
Lipa City Colleges

Break Even Analysis
The chart below shows the 5-year break-even analysis of DEE CUP. The
break-even analysis shows the level of sales in the 5 years which there will be no
profit and no loss. The break-even in sales has an average increase of 35% due
to the increase in variable and fixed costs.
2022 2023 2024 2025 2026
0.52 0.54 0.54 0.56 0.56
Contribution Margin Ratio
3,494,204.12 3,868,156.42 4,087,100.81 4,407,543.06 4,715,711.68
Break Even in Sales
1,803,405.53 2,104,670.03 2,220,295.93 2,473,385.09 2,642,891.44
Variable Costs
1,803,405.53 2,104,670.03 2,220,295.93 2,473,385.09 2,642,891.44
Fixed Cost
Net Income - - - - -
Lipa City Colleges

DEE CUP MARKET RESEARCH

QUESTIONNAIRE
Dear Respondents,
I hope you are doing well and staying safe. I, Dona Pilapil, the undersigned
are currently conducting market research.
In this regard, you are invited to participate in this survey in which your
insight and information are valuable for me, I greatly appreciate your help in
providing your honest answers to the questions below. Rest assured that the
information gathered in this survey will only be used for event purposes and kept
confidential. Thank you so much!
Part I. Respondents Demographic Profile
Directions: Please supply your answer to each item by placing a

checkmark (✔) inside the parenthesis or providing information on the space
provided. Rest assured that any information gathered will be treated with the
utmost confidentiality.
Name (Optional):________________________________________________
Age: ( ) Below 20 years old Sex: ( ) Male

( ) 21-30 years old ( ) Female
( ) 31-40 years old
( ) above 41 years old
Civil Status: ( ) Single Status in Life: ( ) Businessmen

( ) Married ( ) Professional
( ) Others ( ) Students
( ) Others
Monthly Income: ( ) 1,000-500 below

( ) 5,000-1,000
( ) 10,000-5,000
( ) 15,000-10,000
( ) 20,000-15,000
Lipa City Colleges
Part II. Acceptability of Techno-Coffee shop
Direction: Please check the response that best describes
Q1. How do you often go to a coffee shop?
Daily
Weekly
Monthly
Occasionally
Never
Q2. What is your favourite coffee shop in Lipa City?
Beanleaf
Purple Beetle Café
Café de Lipa
The Coffee Bean & Tea Leaf - Lipa
Others
your answer:
Lipa City Colleges

Q3. What do you typically order to drink?
Coffee
Frappe
Tea
Fruit Juice
Others
Q4. What type of hot drink would you likely to buy?
Espresso
Brewed Coffee
Brewed Tea
Chocolate
Q5. What type of cold drink would you likely to buy?
Frappuccino Blended
Milktea
Icedtea
Iced Coffee
Lipa City Colleges

Q6. Would prefer a coffee shop that serves sandwiches, pasta, fries,
and breakfast meal?
Yes
No
Q7. How much do you spend when you go to a coffee shop?
100-200
200-400
400-500
500-1,000
Q8. How do you take your orders?
Dine In
Take Out
Q9. Would a coffee shop that offers gaming/online service, movie watching and
business meeting venue appeals to you?
Yes
No
Lipa City Colleges

Q10. On the scale of 1-5 (5 being the highest) how important are the following
qualities when choosing a coffee shop?
a. Quality of coffee
5
b. Parking space & Location
c. Ambiance & Interior
Lipa City Colleges

d. Price of the products
e. Uniqueness of the product & service
f. Friendly personnel/staff
5
Lipa City Colleges
Q11. A coffee shop who offered combo price and discounts would encourge me
to go.
Yes
No
Q12. What are the purpose in visiting the coffee shop?
Just for meal
Gathering
Study/Reading
Relaxation
Others
Q13. Will you consider visiting more often due to the service?
Yes
No
Q14. Would you recommend or introduce to others for such first techno-coffee
shop?
Yes
No
Lipa City Colleges


Coffee Shop Feasibility Study

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LIPA CITY COLLEGES GRADUATE SCHOOL 1

A FEASIBILITY STUDY PRESENTED TO THE FACULTY OF

Lipa City Colleges

SUMMARY OF THE PROJECT

MARKETING FEASIBILITY SUMMARY

Lipa City Colleges

Project Background Rationale

Lipa City Colleges

Description of Proposed Project

The proposed project is a combination of café and a coffee shop.

• Access to online games for entertainment.

Type of Business Organization

A partnership is an association of two or more persons to carry on, as co-

Lipa City Colleges

Proposed Name of the Project

Location of the Project

Figure 1. Location Map

Lipa City Colleges

The researcher gathers data thru handling out questionnaires to selected

Lipa City Colleges

Descriptive research design will be used in this study. It involves the

Instrumentation and validation

Lipa City Colleges

Demographic Breakdown of Target Market:

✓ Occupation: Depends on life-stage, ranges from college students, faculty

DEMAND AND SUPPLY ANALYSIS

Target Market Growth:

University students continue to grow at a steady pace, at nearly 19.73%

Lipa City Colleges

Target Market Growth

Percentage of the market growth is based on the total population of

Target Market Current Distribution:

Target Market Current

Lipa City Colleges

The Internet has become a point of conversation and entertainment in

Lipa City Colleges

Threats & Competition

The SWOT analysis provides us with an opportunity to examine the internal

Lipa City Colleges

a. Knowledgeable and friendly staff. We've gone to great lengths at DEE

a. A dependence on quickly changing technology. DEE CUP is a place for

Lipa City Colleges

a. Growing population of daily Internet users. The importance of the

Lipa City Colleges

additional competitors are on the horizon, and we need to be prepared for

Lipa City Colleges

The keys to the success for DEE CUP are:

The risks involved for DEE CUP are:

Lipa City Colleges

Lipa City Colleges

DEE CUP has three main strategies.

Lipa City Colleges

DEE CUP marketing will consistently build on this mission. Everything we

Lipa City Colleges

Our primary target markets include:

Lipa City Colleges

DEE CUP second strategy will be focused on attracting entertainment

Lipa City Colleges

Services and Service Marketing

Lipa City Colleges

Lipa City Colleges

Advertising Milestones 2022

Advertising Start Date End Date Budget