BUZZLE COFFEE SHOP

A Business Marketing Plan

Submitted to

PAREF SOUTHCREST SCHOOL, INC.

Senior High School Department
Accounting, Business, and Management (ABM) Strand

In partial fulfillment
of the course/subject requirements in
Principles of Marketing

Instructor
Joyce Ann A. Bait, MBA

Submitted by
Garcia, Keisha Nicole T.
Gaite, Julia Cassandra C.
Uy, Janine Marie P.

December 10, 2021

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 Table of Contents
I. CURRENT MARKETING SITUATION
1.1 Market Description 2
1.2 Product Review 3
1.3 Competitive Review 5
1.4 Channels and Logistics Review 7
1.5 Proposed Marketing Offering 8
II. SWOT ANALYSIS
2.1 Strengths 9
2.2 Weaknesses 10
2.3 Opportunities 11
2.4 Threats 12
III. OBJECTIVES AND ISSUES
3.1 Mission Statement 13
3.2 First-year Objectives 13
3.3 Second-year Objectives 13
3.4 Issues (anticipated) 14
IV. MARKETING STRATEGY
4.1 Segmentation and Targeting 15
4.2 Positioning 16
4.3 Product Strategy 16
4.4 Pricing Strategy 16
4.5 Place/Distribution Strategy 20
4.6 Promotion/Marketing Communications Strategy 21
4.7 Marketing Research Plan 22
V. ACTION PROGRAMS, BUDGETS, AND CONTROLS
5.1. Action Programs for Six Months 23
5.2. Budgets and Financial Projections 25
5.3. Controls/Monitoring Systems 32
VI. REFERENCES 33
VII. APPENDICES 36

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I. CURRENT MARKETING SITUATION

1.1 Market Description

Coffee is consumed daily by Filipinos of all socioeconomic strata. It is served in

restaurants, fast-food franchises, doughnut shops, and small-town diners. Arabica and
Liberica are the most common types of coffee businesses offer. The market for coffee
shops such as Starbucks, Figaro, Bos, Coffee Bean, and Tea Leaf has grown over time.
Retail third-wave (barista and preparation focus) and fourth-wave (roaster
innovation-roast kinds, on-demand roasting, and home roasting) coffee shops are
becoming more popular. Professionals in their twenties and thirties, as well as those with
disposable income, who want to unwind and catch up with friends and family frequently
visit establishments like coffee shops.
With the rise in consumption of coffee, the demand for it has increased as well.
The total demand is estimated to be 65,000 tons, with a 3% annual growth rate over the
medium term, according to one industry participant. In addition, the expected annual
growth rate for the industrial group is 10% to 13%. According to PSA data, per capita,
GCB consumption has been between 0.3 and 0.5 kg per year for more than 20 years
(Philippine Coffee Industry Roadmap, n.d.).
The coffee industry is highly competitive and is expected to further increase in the
future as it prepares to meet rising domestic demand and compete in the global market,
where Indonesia, Vietnam, and Thailand have built footholds. It is also expected that
additional coffee shops will open as Filipinos have been embracing social connection
"over a cup of coffee" with family, friends, and acquaintances.
In recent years, coffee shops with a strong presence in the food retail sector have
grown in popularity. There are many different coffee shops in the Philippines, but all are
focused on the coffee shop’s style to set themselves apart from the competition. It has
also been found that 71% of consumers will spend more money to support a business
with a positive social cause (Serhat Pala, 2018). Hence, Buzzle Coffee Shop will make
use of the current market needs and demands of consumers to flourish in the market. The
medium to working-class ages 18 and up are the target markets for Buzzle Coffee Shop.

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This is because coffee is consumed on a daily basis by 40% of those aged 18 to 24, and
by 54% of those aged 25 to 39 (“What Is the Target Market for Coffee?,” 2013). Cebu
City's drip coffee consumers, coffee shop aficionados, and specialty coffee drinkers will
be targeted by the coffee shop. Buzzle Coffee Shop caters to all coffee drinkers daily.
Autism in the workplace is now the norm (Adel, 2018). Founded in 1989, the
Autism Society Philippines (ASP) is a nationwide, non-profit organization dedicated to
creating an environment that allows people with autism to reach their full potential as
self-reliant, independent, productive, and socially accepted citizens of an Autism-OK
Philippines. ASP is dedicated to creating institutional support for people on the autism
spectrum and their families. Furthermore, ASP has previously launched the ASP Autism
Works, a social development campaign that helps create an "autism-friendly Philippines."
According to the non-profit organization, the campaign "empowers PWAs and their
families toward work success." Buzzle Coffee Shop will partner with the ASP and take
part in this campaign to employ individuals with autism.

1.2 Product Review

In its establishment, Buzzle Coffee Shop offers products such as caffeinated

drinks, non-caffeinated drinks, whole pastries, slices of pastries, and official merchandise
which are found on its menu. For visual representations of Buzzle Coffee Shop’s products
and their prices, see Figures 2 and 3. Figure 2 displays Buzzle Coffee Shop’s regular
menu while Figure 3 displays the menu during its sales promotion: Buzzle Time.

Coffee
● Espresso
● Cafe Americano
● Cappuccino
● Mocha
● Cafe Latte
● Iced Latte
● Iced Americano

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Non-Caffeinated Drinks
● Cocoa
● Chocolate Milkshake
● Caramel Milkshake
● Vanilla Milkshake
● Nature’s Spring Water

Pastries (whole)
● Non-baked Japanese-Style Blueberry Cheesecake
● Chocolate Banana Pie
● Ube Pie
● Tiramisu
● New York Cheesecake

Pastries (slices)
● Non-baked Japanese-Style Blueberry Cheesecake
● Chocolate Banana Pie
● Ube Pie
● Tiramisu
● New York Cheesecake

Buzzle Merch
● Buzzle tumbler

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1.3 Competitive Review

Buzzle Coffee Shop is a coffee shop that aims to empower individuals with
autism and provide them employment opportunities in Cebu City. There is a considerable
amount of coffee shops and cafes around the area near Griffin Hotel and Suites. Buzzle
Coffee Shop’s main competitors provide similar products and services and have the same
geographical location. The following businesses have been recognized as Buzzle Coffee
Shop’s main competition: Starbucks, Bo’s Coffee, Cafe Talk Library, and Cardinal
Coffea.

● Starbucks is a large and well-known American corporation with big brand

recognition. Found in Escario Street, Cebu City, Starbucks has a big advantage
against Buzzle Coffee Shop, a start-up company, in terms of customer loyalty as
the corporation consistently provides high-quality products and services.
Additionally, Starbucks uses a product differentiation strategy to gain a
competitive advantage over its competitors. The company is very well established
and has the means for investing in resources in order to develop and improve its
products and services. However, the pricing of Starbucks’ products is high-priced
which puts them at a slight disadvantage because of the wide availability of
affordable coffee shops in the same area. For delivery services, Starbucks has
partnered with GrabFood to make its products more accessible. It has also
improved its services by launching the Starbucks mobile application that allows
customers to pay for their purchases and pick them up in stores later. This
reinforces customer loyalty and increases the traffic flow of time at Starbucks.
● Bo’s Coffee is a popular Filipino coffee and coffeehouse chain. They believe that
the Philippines is rich in culture and artistry and is a big supporter of locally
brewed coffee. As a large corporation with brand recognition, Bo’s Coffee has
many loyal customers. The shop is at an ideal location with both indoor and
outdoor spacing. Bo’s Coffee has a branch on Osmeña Blvd, Cebu City making
them the closest competitor to Buzzle’s location. Bo’s Coffee uses a digital
marketing strategy to make good quality coffee more accessible for its customers.

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 Delivery is available through “Bo’s Coffee Daily” Facebook Messenger chatbot,
its online website, and food delivery apps such as FoodPanda and GrabFood. This
increases customer loyalty as Bo’s Coffee frequently and directly communicates
with its customers.
● Cafe Talk Library is a coffee shop that incorporates the theme of libraries with
coffee shops. The shop has a pleasant interior design and a wide assortment of
past-time activities such as board games and books that complement the business’
overall concept. Cafe Talk Library is accessible as it is found in Escario Street,
Cebu City. As Cafe Talk Library is a blend of a library and a coffee shop, it
attracts customers because it offers many unique activities that its competitors
don’t offer. This allows the business to stand out among the competition. The
coffee shop has a good ambiance that appeals to its targeted market segment,
Generation Z, individuals born between 1997 and 2012. Cafe Talk Library’s price
range is similar to the price ranges at Starbucks and Bo’s Coffee. However, the
quality of products and services offered at Starbucks and Bo’s Coffee is higher
than that of Cafe Talk Library.
● Cardinal Coffea, a cozy, kid-friendly Cebu-based coffee shop located in Don
Mariano Cui Street, Capitol Site, Cebu City. The coffee shop has a good ambiance
and friendly staff which attracts its target market. Cardinal Coffea is widely
known for its coffee and cakes from its parent company, Cebu Cardinal Bakeshop.
They serve a variety of products on the menu such as cheese rolls, cheese bread,
coffees, pastries, cakes, and drinks. Cardinal Coffea uses social media marketing
to promote its business through its website and social media apps such as
Facebook and Instagram. Cardinal Coffea also provides home delivery and
partners with food delivery apps like GrabFood in order to expand its customer
base and promote its business cost-effectively.

Although there are many existing companies that prove to be strong competitors,
Buzzle Coffee Shop is the first coffee shop in Cebu that gives employment opportunities
to adults with autism. This will help Buzzle Coffee Shop create a relevant brand image
that will allow the business to grow in the market.

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1.4 Channels and Logistics Review

Buzzle Coffee Shop is a coffee shop that provides a wide variety of products that
are normally sold in cafes despite its uniqueness in employee recruitment. The owners
determined a distinct target location that will draw a large number of consumers. Buzzle
will be situated in Griffin Hotel & Suites (see Figure 4) which is located at 22 Gov. M.
Roa St, Cebu City. This is due to the number of individuals that would potentially
purchase cafe beverages and delicacies. As the coffee shop will be situated in a hotel, a
ready market will be present which are the guests and employees of the hotel. The coffee
shop will be stationed close to Cebu Doctors Hospital which is where one of the coffee
shop’s main potential consumer target markets is located in which are the medical and
health care professionals positioned in the said hospital, as well as the patients and their
respective families. Buzzle Coffee Shop’s services are not only limited to the said
consumer target but are readily available for the general public. The distribution of
products will remain accustomed to the usual administering of cafe-related services while
following the government regulations and physical limitations.
Although the owners want to hit a substantial consumer target despite the target
audience mentioned previously, physical restrictions due to the global pandemic may
cause interference with the owners' long-term vision. Buzzle Coffee Shop can readily
provide online services as physical interactions are strictly prohibited. Due to the rapid
uprising of online delivery apps, Buzzle Coffee Shop will sell their respective products in
GrabFood, one of the best-selling online food and beverage delivery services in the
Philippines. Buzzle Coffee Shop will effectively partner up with GrabFood and is
planning to provide services through non-physical engagement. Through this partnership,
Buzzle Coffee Shop will mark up its products by 25% in order for both Buzzle Coffee
Shop and GrabFood to acquire their agreed shares from the sales.

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1.5 Proposed Market Offering

Buzzle Coffee Shop advocates creating a neurodiverse work environment for

adults with autism that have not been given the opportunity to display their potential
because of discrimination they experience. The coffee shop’s name and logo were formed
by incorporating two symbols of autism: the butterfly and the puzzle. Its logo is made of
bright and colorful puzzle pieces that form the shape of a butterfly. Figure 1 illustrates
Buzzle Coffee Shop’s logo. The butterfly symbolizes the beauty of diversity and the
importance of continued development while the puzzle symbolizes the complexity of the
autism spectrum. Moreover, there is currently no existing coffee shop in Cebu City that
offers these kinds of services to people with Autism. This lessens the discrimination
against people that have autism and allows the public to view them in equal status. The
coffee shop upholds equality amongst disabled individuals, which is not very prevalent in
the area. The workers in the Buzzle Coffee Shop will be creating the customers’
beverages and will be taking their orders. The shop is approximately 50 square meters
and can accommodate a maximum of 50 customers (see Figure 5). In addition, the shop is
spreading awareness on autism through its interior such as the selling of tumblers that
possess the shop’s logo to convey the shop’s overall advocacy and eye-catching
placemats that possess information on autism for easy-access knowledge and donation
drives to support Autism Society Philippines and other organizations that are for the
awareness on autism (see Figures 6 and 7). Buzzle Coffee Shop will be creating a sales
promotion called Buzzle Time where a 5% discount will be given to those who purchase
their caffeinated and non-caffeinated beverages from 1:00 PM to 5:00 PM. This will be
the period where the employees with Autism will be given a chance to work and operate
the shop as this is to spread awareness on autism.

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II. SWOT ANALYSIS

Strengths Weaknesses

● Increasing awareness of service ● Lack of brand awareness

● Consignment ● High capital investment
● Two-week staff training ● No experience
● Convenient location ● Cost disadvantage

Opportunities Threats

● Offers job opportunities to people with ● Competition

autism ● Public views on individuals with
● Market growth autism
● Employment offers ● Market entry
● Expansion of Buzzle Coffee Shop

2.1 Strengths

● Increasing awareness of service: This is the strongest factor of the business as

this is the first coffee shop in the area that caters to the employment of individuals
with autism to display their potential and be given a chance to work in Cebu City.
The said strength can increase awareness of the work capabilities of people with
autism. Autism is a condition overlooked by society; thus, this will break the
status quo of people with autism being impotent and lessen discrimination against
people with autism.

● Consignment: Buzzle Coffee Shop will consign with Cafe Selva for their pastries.
Consigning with the cafe is a strong element to the potential sales of the business
as all parties will be earning and benefiting from the consignment. This allows the
business to lessen its costs as the chefs and ingredients for the pastries on the
menu are not necessary.

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 ● Two-week staff training: Buzzle Coffee Shop’s employment consists of
individuals with high-functioning autism. As a result of this developmental
disability, employees must undergo two weeks of training before officially
working in the coffee shop. Additionally, this training period will increase
productivity, improve the quality of work, and positively influence employee
morale.

● Convenient location: Buzzle Coffee Shop will be situated in Griffin Hotel &
Suites which has a ready market (the guests and employees of the hotel). A
hospital, Cebu Doctors Hospital, is located close to Buzzle Coffee Shop’s location
so medical and health care professionals, patients, and their respective families
are a part of Buzzle Coffee Shop’s target market.

2.2 Weaknesses

● Lack of brand awareness: As a new coffee shop, Buzzle Coffee Shop will enter
the market with little brand awareness. Although Buzzle Coffee Shop will consign
with Cafe Selva to provide a variety of products, it will have to focus greatly on
its promotion and distribution strategies. This is to ensure that its products and
services are widely known, available everywhere, and heard by its market as
Buzzle Coffee Shop enters the coffee shop industry.

● High capital investment: Being an entirely new coffee shop in the industry,
Buzzle Coffee Shop may require a high amount of initial capital due to initial
costs. The initial investment of Buzzle Coffee Shop is limited to investments
made by the owners of Buzzle Coffee Shop. This may be a problem in the
beginning when covering daily operational expenses and employee salaries. In
addition to this, starting expenses would be high as the company would have to
buy the necessary supplies, furniture, and equipment.

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 ● No experience: As Buzzle Coffee Shop enters the industry as a new coffee shop,
it would have less experience running the operations in the business. Although
experience is not a necessity when starting a business, its owners and employees
would have less knowledge and insight compared to businesses with prior
experience. With no experience, the productivity of its employees may decrease
the success rate of the business.

● Cost disadvantage: Buzzle Coffee Shop will be at a cost disadvantage as it will

run on a tight margin between its profits and its costs. Compared to its
competitors, Buzzle Coffee Shop will earn little profit initially as its costs are
high. This issue will be addressed through Buzzle Coffee Shop’s pricing and
product strategies to increase its profits or sales.

2.3 Opportunities

● Offers job opportunities to people with autism: Because there is discrimination

against people with autism, they have fewer job opportunities. Buzzle coffee shop
offers them the opportunity to work in a shop while simultaneously raising
awareness of autism. Buzzle Coffee Shop will be inundated with job applications
from families that have a member with autism. This allows Buzzle Coffee Shop to
grow without having to worry about staffing.

● Market Growth: The global coffee shop industry is expected to increase by

US$58.7 billion, with a compounded annual growth rate of 4.1 percent. This
provides Buzzle Coffee Shop with a significant chance to participate in market
expansion, and it may also imply that, because the market is growing, an increase
in profits can be expected as a result of the market's increased visibility.

● Expansion of Buzzle Coffee Shop: As Buzzle Coffee Shop gains more brand
awareness and customers and sales, it will soon have the opportunity to expand
and have more branches around Cebu City and other places in the Philippines.

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 This will also give employment opportunities for other people with autism outside
of Cebu City.

2.4 Threats

● Competition: As shown in the competitive review, there is high competition

amongst the mentioned brands in the industry. This can decrease the sale
productivity and brand awareness of the coffee shop as the general public will
center the attention on the well-known existing shops that are situated in the area.

● Public views on individuals with autism: The perceptions of individuals towards

the people who have autism have been a division between what society perceives
to be “normal.” That mindset can affect the consumer target of the coffee shop as
only a minority are aware of the capabilities of a person with autism.

● Market Entry: The market entry of Buzzle Coffee Shop and its products can
encounter difficulty in standing out as the products that will be sold are the
standard products that are normally sold in other coffee shops.

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III. OBJECTIVES AND ISSUES

Buzzle Coffee Shop has established feasible and ambitious objectives for the first
and second years of market entry.

3.1 Mission Statement

Buzzle Coffee Shop is a Cebu City-based coffee shop that serves a variety of
drinks and pastries and aims to raise awareness and empower persons with autism by
providing them with job opportunities.

3.2 First-year Objectives

For its first year objectives, Buzzle Coffee Shop expects to make 3 million pesos
in gross sales in the market. In addition, Buzzle Coffee Shop plans to serve 20,000
customers, which is greater than the population of 12,604 in Capitol Site, Cebu City. It is
expected to serve 2.07% of Cebu City's total population.

3.3 Second-year Objectives

For its second year, Buzzle Coffee Shop intends to double its gross sales from the
previous year, bringing total sales to 6 million pesos in the market. It will continuously
strive to raise the bar in terms of the number of customers it serves. And compared to the
previous year, it intends to increase the number of customers it serves from 2.07% to 5%
of Cebu City’s total population. Buzzle Coffee Shop will accomplish these objectives
through the implementation of its marketing strategies to gain customer loyalty, achieve
excellent brand recognition, and establish profitable customer relationships.

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3.4 Issues (anticipated)

The main anticipated issues when launching Buzzle Coffee Shop would be the
implementation of brand awareness and the rise of supplier prices. This is due to the high
competition of coffee shops found in the area. These coffee businesses are
well-established, have gained brand awareness, and are more likely to draw the attention
of the majority of consumers in the area. To address this issue, Buzzle Coffee Shop will
attract customers with its low prices and unique services. The rising of supplier prices
will also be a major concern since this can significantly impact the company's gross sales
and net income. This may cause the company to raise prices which can result in a loss of
customers.

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IV. MARKETING STRATEGY

4.1 Segmentation and Targeting

Buzzle Coffee Shop’s target market is the neighboring establishments around the
situated location. This includes the guests staying at Griffin Hotel, medical and healthcare
professionals, as well as the patients and their families that come from Cebu Doctors
Hospital, and passers-by that come across the coffee shop. The shop provides readily
available services for the said market and to target its consumers, Buzzle Coffee Shop has
divided its target market into the following segments:

1. Demographic Segmentation: The target market of Buzzle Coffee Shop will be

medical and healthcare professionals, hotel employees, hotel guests, and students.
The demographics of these individuals are from the medium to working class age
range of 18 and above.

2. Psychographic Segmentation: The target market of Buzzle Coffee Shop will be

individuals who support Buzzle Coffee Shop’s advocacy which is to uproot
discrimination against individuals with autism. These individuals are also
interested in supporting and spreading awareness on autism.

3. Behavioral Segmentation: The target market of Buzzle Coffee Shop will be

individuals who are interested in caffeinated beverages and those who frequent
coffee shops.

4. Geographic Segmentation: The target market of Buzzle Coffee Shop will be

individuals present around Griffin Hotel, Cebu such as the guests residing in the
hotel, employees working in the hotel, medical and healthcare professionals from
Cebu Doctors Hospital, the patients and their respective families, and passers-by
that come across the coffee shop.

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4.2 Positioning

Buzzle Coffee Shop will be positioned on a “more for less” value proposition.
This value proposition will attract customers since the coffee shop will offer more
benefits through its great service and it will offer lower prices than its competitors. The
coffee shop will focus on training its staff for one month which will boost employee
morale, increase efficiency, and improve the overall quality of work. The distinctive
service that Buzzle Coffee Shop will offer allows it to differentiate itself from the rest of
its competitors in the market. Marketing will focus on delivering Buzzle Coffee Shop’s
message: providing its customers with good coffee, pastries, and other beverages while
also empowering individuals with autism by giving them employment opportunities.

4.3 Product Strategy

Buzzle Coffee Shop will use the rise in demand for coffee to its advantage. It will
pursue this by offering all products detailed in the Product Review section. As an
essential part of Buzzle Coffee Shop’s product strategy, internal marketing will be
applied. Internal marketing is a service market strategy that will be applied mainly for the
orientation of Buzzle Coffee Shop’s employees. In addition, internal marketing will
promote brand advocacy and increase employee engagement within the coffee shop. Its
staff will be appropriately oriented and trained in order to provide unparalleled customer
satisfaction to its consumers. This will aid in Buzzle Coffee Shop’s word-of-mouth
marketing which will result in good brand credibility and brand loyalty. All aspects of
Buzzle Coffee Shop’s marketing mix will be consistent.

4.4 Pricing Strategy

Buzzle Coffee Shop’s pricing is similar yet lower in comparison to its neighboring
competitors such as Bo’s Coffee and Starbucks which gives the company a competitive

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advantage. The table below shows a comparison of prices between Buzzle Coffee Shop
and one of its main competitors: Bo’s Coffee.

Menu Items Buzzle Coffee Shop Bo’s Coffee

Espresso ₱ 100 ₱ 105

Cafe Americano ₱ 115 ₱ 120

Cappuccino ₱ 120 ₱ 125

Cafe Latte ₱ 119 ₱ 125

Cafe Mocha ₱ 129 ₱ 135

Buzzle Coffee Shop will utilize cost-plus pricing or markup pricing in its pricing
strategy. The shop will add a 1070% markup for its caffeinated beverages, a 340%
markup for its non-caffeinated beverages, and a 35% markup to the cost of pastries
provided by Cafe Selva. The tables below show the markup calculations for caffeinated
beverages, non-caffeinated beverages, and pastries from Cafe Selva.

Caffeinated Drinks Cost Selling Price Earnings

Espresso 9.345 100 90.655

Cafe Americano 9.54 115 105.46

Cappuccino 16.49 120 103.51

Mocha 12.8775 129 116.1225

Cafe Latte 11.7725 119 107.2275

Iced Latte 23.565 139 115.435

Iced Americano 13.14 149 135.86

Non-Caffeinated Drinks Cost Selling Price Earnings

Cocoa 27.13 90 62.87

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 Chocolate Milkshake 45.16 149 103.84

Vanilla Milkshake 50.53 149 98.47

Caramel Milkshake 46.78 149 102.22

Nature’s Spring Water 10 25 15

Pastries from Cafe Selva Cost Selling Price Earnings

Non-baked Japanese-Style ₱ 840 ₱ 1134 ₱ 294

Blueberry Cheesecake (whole)

Non-baked Japanese-Style ₱ 105 ₱ 142 ₱ 37

Blueberry Cheesecake (slice)

Chocolate Banana Pie (whole) ₱ 736 ₱ 995 ₱ 259

Chocolate Banana Pie (slice) ₱ 92 ₱ 125 ₱ 33

Ube Pie (whole) ₱ 640 ₱ 864 ₱ 224

Ube Pie (slice) ₱ 80 ₱ 110 ₱ 30

Tiramisu (whole) ₱ 760 ₱ 1026 ₱ 266

Tiramisu (slice) ₱ 95 ₱ 130 ₱ 35

New York Cheesecake (whole) ₱ 760 ₱ 1026 ₱ 266

New York Cheesecake (slice) ₱ 95 ₱ 130 ₱ 35

In addition, the shop will create a sales promotion called Buzzle Time where a 5%
discount will be given to customers who purchase caffeinated or non-caffeinated
beverages exclusively from 1:00 PM to 5:00 PM. The tables below contain beverages that
will be affected by the 5% discount. It also shows the costs, selling prices, and earnings
of Buzzle Coffee Shop during Buzzle Time.

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 Caffeinated Drinks - Buzzle Time Cost Selling Price Earnings

Espresso ₱ 9.345 ₱ 95 ₱ 85.655

Cafe Americano ₱ 9.54 ₱ 109.25 ₱ 99.71

Cappuccino ₱ 16.49 ₱ 114 ₱ 97.51

Mocha ₱ 12.8776 ₱ 122.55 ₱ 109.6725

Cafe Latte ₱ 11.7725 ₱ 113.05 ₱ 101.2775

Iced Latte ₱ 23.565 ₱ 132.05 ₱ 108.485

Iced Americano ₱ 13.14 ₱ 141.55 ₱ 128.41

Non-caffeinated Drinks - Buzzle Time Cost Selling Price Earnings

Cocoa ₱ 27.13 ₱ 85.5 ₱ 58.37

Chocolate Milkshake ₱ 45.16 ₱ 141.55 ₱ 96.39

Vanilla Milkshake ₱ 50.53 ₱ 141.55 ₱ 91.02

Caramel Milkshake ₱ 46.78 ₱ 141.55 ₱ 94.77

Since a consignment will be made with the supplier of the shop’s pastries, the
distribution of the pastries will be sold at a reasonable price that will benefit the supplier,
the shop, and the consumers. This will be the pricing strategy that Buzzle Coffee Shop
will implement in the long term.

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 4.5 Place/Distribution Strategy

Buzzle Coffee Shop’s owners plan to develop both physical and delivery services
to distribute their goods to their consumers. Direct distribution will be used as the owners
will directly sell and send products to the shop’s consumers. The location of the shop has
an active number of the shop’s target market as middle to working class individuals are
present around the area. Additionally, the shop already has a ready market as the shop is
situated in a hotel. Distribution of products physically will be handled by employees
without autism, who are working their first shift from 6:00 AM to 2:00 PM. Their second
shift will be from 2:00 PM to 10:00 PM and the employees with autism will work their
shift from 1:00 PM to 5:00 PM. The shift from 1:00 PM to 5:00 PM is during Buzzle
Time to promote awareness of autism and compensate for the working ability of the
employees. The employees with autism will be accompanied by other employees without
autism whose shifts overlap during Buzzle Time. The table below shows the weekly
schedule of employees of Buzzle Coffee Shop.

Employee Schedule

TIME MON TUE WED THU FRI SAT SUN

OFF N1 N1 N1 N1 N1 N1

N2 OFF N2 N2 N2 N2 N2
6:00 AM - 2:00 PM
N3 N3 OFF N3 N3 N3 N3

N7 N7 N7 OFF

A1 A1 A1 A1 A1 OFF A1
1:00 PM - 5:00 PM
A2 A2 A2 A2 A2 A2 OFF

N4 N4 N4 N4 OFF N4 N4

N5 N5 N5 N5 N5 OFF N5
2:00 PM -10:00 PM
N6 N6 N6 N6 N6 N6 OFF

N7 N7 N7

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 Legend

N Employees without autism

A Employees with autism

OFF Employee’s day off

Furthermore, Buzzle Coffee Shop’s online distribution of goods will be handled

by the food delivery company: GrabFood. This distribution strategy will be beneficial
especially for consumers that prefer to have the products delivered to them. This can
allow the shop to gain more potential consumers as both applications have a wide variety
of users. Buzzle Coffee Shop’s owners plan to actively use direct distribution consistently
for the shop’s first few years in the industry to gain market share and consumer
purchases.

4.6 Promotion/Marketing Communications Strategy

Buzzle Coffee Shop will utilize an integration of communication channels in

order to communicate and engage with its customers while delivering its main and clear
message on raising awareness on autism through the employment of persons with autism
at Buzzle Coffee Shop. Thus, promotional resources will be focused on the following
areas:

1. Public Relations (PR) marketing: Buzzle Coffee Shop will work with Autism
Society Philippines, a national and non-profit organization dedicated to the
well-being of persons on the autism spectrum disorder. This will allow Buzzle
Coffee Shop to reach a wider audience and create a good image that will attract
customers.

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 2. Online and mobile marketing: Buzzle Coffee Shop will create and build social
media presence on social media apps such as Twitter, Facebook, TikTok, and
Instagram. Publicizing the partnership with ASP will help increase media
attention and customer engagement in the aforementioned social media apps.

3. Word-of-mouth marketing: The partnership with ASP will not only increase
Buzzle Coffee Shop’s social media presence but will also help in solidifying its
brand and developing a good word-of-mouth reputation. Word-of-mouth
marketing will help attract new customers to the coffee shop and in turn, increase
engagement for ASP.

4. Sales Promotion: Buzzle Coffee Shop will offer a limited price reduction of 5%
on its caffeinated beverages and non-caffeinated beverages every day from 1 P.M.
to 5 P.M. The implementation of the sales promotion will increase Buzzle Coffee
Shop’s publicity and encourage the purchase of its products.

4.7 Marketing Research Plan

Buzzle Coffee Shop will monitor discussions in order to remain consistent with
both its online and offline promotional approaches. The marketing research plan will be
conducted in order to gauge customer purchase behaviors, customer satisfaction, and
customer perceptions of its products and services. Gathering and observing these data
will help Buzzle Coffee Shop understand its customers’ wants and needs. It will also help
in the development and improvement of its products and services. Additionally, these
insights will help assess market share and market potential and will aid in determining the
success of the pricing, product, distribution, and promotion strategies that Buzzle Coffee
Shop will implement.

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V. ACTION PROGRAMS, BUDGETS, AND CONTROLS

5.1. Action Programs for Six Months

Month Action Program

January Before the official opening, Buzzle Coffee Shop will print
educational information on autism on its paper placemats in order
to increase awareness of autism in the coffee shop. In addition,
Buzzle Coffee Shop will sell tumblers with its logo to promote the
shop’s mission. The marketing department will open accounts on
social media apps such as Instagram, Facebook, Twitter, and
TikTok. Official promotions will begin at this time through social
media posts, stories, and videos in order to garner attention. The
staff will work and receive their salaries and benefits from the
company such as the Social Security System (SSS), Philippine
Health Insurance (PhilHealth), and the Pag-IBIG Fund once
Buzzle Coffee Shop officially opens. In addition, the owners of
Buzzle Coffee Shop will monitor online discussions, employee
performances, and customer feedback.

February In the second month since Buzzle Coffee Shop’s opening, the
number of postings on its social media channels will increase in
order to raise brand awareness and increase customer attention.
Promotions for online content will mainly focus on the uniqueness
of Buzzle Coffee Shop’s services and its mission on creating a
more Autism-friendly work environment. Buzzle Coffee Shop
will also advertise and promote Buzzle Time which is the sales
promotion offered exclusively from 1:00 PM to 5:00 PM to attract
more customers.

March Buzzle Coffee Shop will continue to regularly promote Buzzle

Time to increase brand visibility and draw attention from
customers. Furthermore, the owners will analyze the growth of the
coffee shop and will make necessary changes to improve its
products and services. Buzzle Coffee Shop will continue to
market its products and services on its social media platforms in
order to boost brand awareness. Buzzle Coffee Shop will also start
planning for its event held for Autism Awareness Day.

April To celebrate Autism Awareness Day on April 2, Buzzle Coffee

Shop has decided to give out free keychains (see Figure 8) for
every customer that purchases a beverage. Buzzle Coffee Shop
will also post interactive and informative posts on its social media

23
 platforms to engage with its social media followers and increase
awareness of autism.

May Buzzle Coffee Shop will add the shop’s location to navigation
apps such as Google Maps and Waze to increase visibility and
make the coffee shop more accessible for potential customers.
Moreover, Buzzle Coffee Shop will continue to promote through
its social media and through the partnership with Autism Society
Philippines to increase customer engagement. The Autism Society
Philippines will advertise Buzzle Coffee Shop through publishing
articles and posts on its website and social media sites.

June Buzzle Coffee Shop will aim to achieve positive customer

feedback and create a relevant brand image that will help to
increase customer loyalty. Additionally, Buzzle Coffee Shop will
continue to focus on marketing through social media to engage
with its customers to build meaningful customer relationships.

24
5.2. Budgets and Financial Projections

Buzzle Coffee Shop’s budget was calculated by adding all necessary costs for the
first 3 months which amounted to ₱ 783,650 as shown in the table below.

Costs (3 months) Price

Coffee Machine (San Remo Zoe Competition) ₱ 228,000

Grinder ₱ 68,000

Blender JTC OmniBlend 1 (TM 767) ₱ 8,270

heavy-duty commercial with 2L

Coffee beans ₱ 27,260

Nestlé Fresh Milk ₱ 15,300

Water ₱ 450

Ice ₱ 750

Cocoa Powder ₱ 600

Chocolate Ice Cream ₱ 5,500

Vanilla Ice Cream ₱ 10,450

Chocolate Syrup ₱ 976

Vanilla Extract ₱924

Caramel Sauce ₱1,036

Nature’s Spring Water ₱ 4,000

Espresso Cup Solo (1 cup and 1 saucer) ​₱ 2,260

Coffee Cup and Saucer (12 oz) ₱ 2,400

Coffee Spoon ₱ 215

Dessert Plate ₱ 1,250

Dessert Spoon ₱ 1,250

Dessert Fork ₱ 1,250

25
 Expenses for 3 months ₱ 403,508.5

₱ 783,650

In addition, the table below shows the calculations that were made for the
expenses of 6 months in order to calculate for the expenses of 3 months.

Expenses for 6 months

Rent Expense ₱ 150,000

Salaries Expense ₱ 475,710

Benefits and ₱ 52,545

Compensation Expenses

Water Expense ₱ 3,000

Electricity Expense ₱ 18,000

Marketing Expenses ₱ 54,000

Consumable Expenses ₱ 53,912

₱ 807,167

Expenses per month = ₱ 134,527.8333

Expenses for 3 months = ₱ 403,583.5

The table below shows the calculation for benefits and compensation expenses for
6 months:

SSS ₱ 39,045

PhilHealth ₱ 8,100

Pag-IBIG ₱ 5,400

₱ 52,545

26
 The table below shows the calculation for marketing expenses for 6 months:

Instagram Boost Post ₱ 37,200

Facebook Boost Post ₱ 16,800

₱ 54,000

The table below shows the calculation for consumable expenses for 6 months:

50 Milkshake Cup with cover (12 oz) 30 packs ₱ 6,450

100 Pieces Thich Black Straw (23 cm) 20 packs ₱ 1,400

50 sets per pack Black/Kraft Rippled Coffee 80 packs ₱ 30,400

Cups with black lids

Individually packed white sugar (1 pack - 100 30 packs ₱ 2,490

pieces)

Individually packed brown sugar (1 pack - 100 30 packs ₱ 2,490

pieces)

Individually packed creamer (1 pack - 100 20 packs ₱ 1,800

pieces)

Coffee Stirrer (1 pack - 500 Pieces) 5 packs ₱ 450

Joy Concentrate Antibac Dishwashing Liquid 12 pieces ₱ 2,268

5 pieces of sponge 50 sponges ₱ 220

Mops 3 mops ₱ 735

Brooms 2 brooms ₱ 120

Dustpans 2 dustpans ₱ 50

Ultra Detergent Plus Powder 20 kgs ₱ 700

100 pcs cleaning rags 1 pack ₱ 189

Placemats 200 pieces ₱ 1,000

Tumblers 25 pieces ₱ 2,250

27
Keychains 50 pieces ₱ 900

₱ 53,912

Hence, the owners of Buzzle Coffee Shop have decided to contribute ₱ 333,333
each for the coffee shop’s budget. This amount totals to ₱ 1,000,000 which will be the
necessary budget to start up the coffee shop. Break-even analysis was computed by
determining the fixed and variable costs of Buzzle Coffee Shop. Its fixed costs include
rent expense, salaries expense, benefits and compensation expenses, water expense,
electricity expense, marketing expenses, materials expenses, and equipment expenses. On
the other hand, its variable costs include consumable expenses and initial inventory
expenses. For Buzzle Coffee Shop’s first 6 months, its fixed costs are assumed to amount
to ₱ 1,066,150 while its variable costs are assumed to amount to ₱ 121,158. In addition,
Buzzle Coffee Shop has set a 6-months gross sales goal of ₱ 1,562,791.3. The tables
below show more comprehensive and in-depth calculations for the fixed costs, variable
costs, and 6-months gross sales goal.

Fixed Costs (6 months)

Rent Expense ₱ 150,000

Salaries Expense ₱ 475,710

Water Expense ₱ 3,000

Electricity Expense ₱ 18,000

Marketing Expense ₱ 54,000

Materials Expense ₱ 8,625

Equipment Expense ₱ 304,270

₱ 1,066,150

Variable Costs

Consumable Expense ₱ 53,912

28
Initial Inventory (3 months) ₱ 67,246

₱ 121,158

Gross Sales Goal

1st month (January) ₱ 134,480.2

2nd month (February) ₱ 210,614.25

3rd month (March) ₱ 267,684.9

4th month (April) ₱ 292,132.3

5th month (May) ₱ 293,612.65

6th month (June) ₱ 364,267

₱ 1,562,791.3

29
 The images below show a more detailed calculation of the revenue sales forecast
for the first 6 months.

30
 Based on these calculations and assumptions, the break-even calculation will
amount to ₱ 1,155,751.566.

₱ 1,066,150 × ₱ 1,562,791.3
Break-even point = ₱ 1,562,791.3 − ₱ 126,698
= ₱ 1, 160, 210. 095

31
32
5.3. Controls/Monitoring Systems

Buzzle Coffee Shop will be planning firm control measures to closely monitor
brand awareness, customer satisfaction, brand image, employee performance, product
and service quality, monthly sales & expenses, and overall growth of the business. The
owners will implement monthly reviews to closely monitor the development of the coffee
shop and to determine the areas of improvement. The monitoring of employees with and
without autism will be examined to review their performance. The sales during Buzzle
Time will be surveilled to check if the promotion period is indeed effective. The social
media interactions and engagements will be reviewed as well to check the brand
awareness of the shop and to seek improvement feedback.

33
VI. REFERENCES

Adel, R. (2018, April 3). Persons with autism in the workplace now a “norm.” Retrieved
November 25, 2021, from Interaksyon website:
https://interaksyon.philstar.com/breaking-news/2018/04/03/123695/persons-with-aut
ism-in-the-workplace-now-a-norm/.

Amen Clinics. (2021, March 30). 4 Challenges and 4 Strengths in High-Functioning

Autism | Amen Clinics. Retrieved November 15, 2021, from Amenclinics.com
website:
https://www.amenclinics.com/blog/4-challenges-and-4-strengths-in-high-functioning
-autism/.

Autism’s Colors & Symbols - The Place for Children with Autism. (2019, October 28).
The Place for Children with Autism.
https://theplaceforchildrenwithautism.com/autism-blog/autisms-colors-symbols

Bo’s Coffee 25th Anniversary Pinoy Pride | Bo’s Coffee. (2021, October). Retrieved
November 21, 2021, from Bo’s Coffee website:
https://www.boscoffee.com/blogs/news/bos-coffee-25th-anniversary.

Carnrite, J. (2015, July 13). Place Strategy in Marketing: Examples & Definition.
Retrieved November 25, 2021, from Study.com website:
https://study.com/academy/lesson/place-strategy-in-marketing-examples-definition-
quiz.html.

DeAsi, G. (2018, February 8). 10 Powerful Behavioral Segmentation Methods to

Understand Your Customers. Retrieved November 24, 2021, from Pointillist
website: https://www.pointillist.com/blog/behavioral-segmentation/.

Department of Agriculture, & Department of Trade and Industry. (n.d.). Philippine Coffee

34
 Industry Roadmap. Retrieved November 15, 2021, from
https://www.da.gov.ph/wp-content/uploads/2019/06/Philippine-Coffee-Industry-Roa
dmap-2017-2022.pdf.

Geronimo Colt. (2013, October 31). Sustained Competitive Advantage of Starbucks.

Retrieved November 21, 2021, from ToughNickel website:
https://toughnickel.com/industries/Sustained-Competitive-Advantage-of-Starbucks.

Global Coffee Shops Market Analysis, Trends, and Forecasts 2019-2025 -

ResearchAndMarkets.com. (2019, December 12). Retrieved November 15, 2021,
from Businesswire.com website:
https://www.businesswire.com/news/home/20191212005790/en/Global-Coffee-Sho
ps-Market-Analysis-Trends-and-Forecasts-2019-2025---ResearchAndMarkets.com.

Hiring employees on the autism spectrum. (2021, April 1). Retrieved November 15, 2021,
from Randstad.ca website:
https://www.randstad.ca/workplace-insights/corporate-culture/hiring-employees-auti
sm-spectrum/.

Jenkins, L. (2021, July 26). Distribution Strategy | Cutting Edge Distribution Strategies
2021. Retrieved November 25, 2021, from Selecthub.com website:
https://www.selecthub.com/enterprise-resource-planning/cutting-edge-distribution-st
rategies/.

Oesch, T. (2019, August 19). Autism at Work: Hiring and Training Employees on the
Spectrum. Retrieved November 15, 2021, from SHRM website:
https://www.shrm.org/resourcesandtools/hr-topics/behavioral-competencies/global-a
nd-cultural-effectiveness/pages/autism-at-work-hiring-and-training-employees-on-th
e-spectrum.aspx#:~:text=Research%20shows%20that%20there%20can,that%20is%
20in%20high%20demand.

35
 Quain, S. (2019, January 28). What Is the Target Market for Coffee? Retrieved November
18, 2021, from Chron.com website:
https://smallbusiness.chron.com/target-market-coffee-71600.html.

Serhat Pala. (2018, May 11). 71 Percent of Consumers Will Spend More Money to Support
a Cause. Here’s How to Pick the Right One for Your Company. Inc.com; Inc.
https://www.inc.com/serhat-pala/71-percent-of-consumers-will-spend-more-money-t
o-support-a-cause-heres-how-to-pick-right-one-for-your-company.html.

36
VII. APPENDICES

Figure 1. Buzzle Coffee Shop’s logo.

Figure 2. Buzzle Coffee Shop’s menu.

37
Figure 3. Buzzle Time menu.

Figure 4. Eye-level view of Griffin Hotel & Suites.

38
Figure 5. Buzzle Coffee Shop’s interior design and layout.

Figure 6. Buzzle tumbler.

39
Figure 7. Placemat design of Buzzle Coffee Shop.

Figure 8. Buzzle keychain for Autism Awareness Day.

40