I.

EXECUTIVE SUMMARY

Most entrepreneurs nowadays run their businesses out of bakeries, which is a terrific
potential, given that today's consumers have less time to prepare nutritious handmade bread
but are growing to value the nutritional and sensory benefits it provides.

         Caligan’s bakery is a sole proprietorship bakeshop run by Mrs. Luzviminda Caligan.
It consistently provides and delivers fresh, nutritious bread like caramel bread, cheese bread,
ensaymada, cookies, mamon, and pudding that are hand-shaped by skilled individuals
utilizing wholesome sustainable healthy ingredient and nutriment such as malunggay whilst
without using any preservatives like anti-amag and food coloring.

      After establishing operations, it will focus its efforts on establishing a sizable
recurring customer base as the primary target market for businesses will be neighborhood
residents. This will provide a solid, reliable revenue base for the business, ensuring its
stability. The bakery will work to expand wherein it is open to anyone who wants to resell
bread in different barangay of Flora, Apayao, or perhaps other locations, where shelves will
be given and will be used for displays. Even a package transformation that will catch the
attention of the younger market will be pursued. 

Caligan’s bakery aims to transform individual to a potential customer by giving them

the finest bread and the value they need and as to build affiliation that will make the customer
loyal even in the rising of rivalry or competition. Their patronage of the product will be one
of the keys to reach the very objective of the business which is to establish and increase
provincial market share within 5 years.

1
II. BRIEF DESCRIPTION OF BUSINESS

Caligan’s Bakery is a local bakeshop located at Allig, Flora, Apayao owned by sole
proprietor Luzviminda Caligan. It is comprised of 4 workers including the owner. Bakery
uses Business-to-Business (B2B) and Business-to-Customer (B2C) business models wherein
it sells bread to sari-sari store enterprises and occasionally directly to individual customers.

The bakery provides products like caramel bread, cheese bread, pan de coco, pudding,
malunggay pandesal, ensaymada, cookies, mamon, sweet buns that are hand-shaped by
trained workers. The workers are trained for one week and oriented with the proper attire for
work including the use of hair net during the work.

Caligan’s bakery uses healthy ingredients such as malunggay (horseradish) as a

nutriment to bread.  The bakery does not use any food additives such as food color, anti-
amag, and caramel coloring that are not good for health. 

III. MISSION, VISION, AND CORE VALUES

Vision

One of the province preeminent bakeries transcending exceptional baking

committed to produce the finest quality bread and pastries that are nutritious and with
reasonable price.

Mission

Caligan’s Bakery consistently provides and delivers fresh, nutritious bread with
good aroma that would sate the sweet tooth taste buds of customers. We are to pursue
supremacy through the production of fine breads that are hand-shaped by skilled
individuals utilizing wholesome sustainable healthy ingredients.

Core values

A - Adaptive
B - Benevolent
C - Customer-oriented

2
IV. COMPANY ANALYSIS

Strength

 Products are offered in varieties of flavor 

This can be a strength of the business because offering varieties of flavors
gives customers varieties of choices that will fit in their taste preferences.
 Acquired latest baking equipment and kitchen tools
Equipment and tools can be a strength of the business since it helps the
business fastrack its production process.

 Offers delivery services across near places

Offering delivery services helps the business become more profitable since
the bakery offer products on a wider scope of market.

 Skilled and trained workers

Skilled workers are the key on every delicious bread offered by the business.
Delicious and unique breads lead to customer satisfaction and loyalty.

Weakness

 Location of the bakery

The location of the bakery is a weakness of the business since it was put up in
the residence of the owner. Customers have limited space and scope of the
business is narrow. 

 No proper accounting practice (separate business entity concept)

 Separate business entity concept is one of the accounting practices that a
business must exercise to achieve profitability and success of the business.
Separate business entity concept separates the business from its owners. This
means that any revenue or expenses incurred in the business is allocated only
in the business and not on its owners. When a business does not practice this
concept, it will now become their weakness because it will make the business
unstable and unprofitable.

3
Opportunities

 Growing health concern

Pandemic served as an eye-opener that health is really something one should

not take lightly, hence, people grew health conscious. They place a higher
priority on health since they are aware that the food they eat affects how long
they live. The bakery offers breads devoid of any unhealthy additives like
food colors and anti-amags.

 Farmers planting season

Planting seasons can be an opportunity because farmers buy their snacks in

the bakery. They prefer buying bread because it is affordable and can ease
their hunger during work.

Threats

 Competition to another bakery shops

Competitors are threats in the business since there is a possibility that they
will get your other customers which leads to decrease of profit

 Inflation can be a big threat to the business because it decreases the ability of
the customer in buying certain products. This leads to lower demands. 

 Fluctuation in raw material prices

When prices of ingredients become higher, the price of bread increases. It
affects the cost of the products produced. This can be a threat because the
customer wants an affordable price. There is a possibility that they will not
buy anymore in the bakery or find other substitute products.

V. STRATEGIC OBJECTIVES

1. Attract more Sales

2. Increased product options including transformation of packaging
3. Increase business revenue over the next 2 years 
4. Open new locations in 4 years

4
5. Obtain provincial market in 5 years

5
 VI. PROJECTS / ACTION PLAN

STARTSTART END END 01-Jan-23 01-Apr-23 01-Jul-23 01-Oct-23 01-Jan-24 01-Apr-24 01-Jul-24 01-Oct-24 01-Jan-25 01-Apr-25 01-Jul-25 01-Oct-25 01-Jan-26 01-Apr-26 01-Jul-26 01-Oct-26 01-Jan-27 01-Apr-27 01-Jul-27 01-Oct-27
1. REVENUE/SALE:INCREASE 1. REVENUE/SALE:INCREASE
SALES SALES 01 January
01 January
2023 2023 31 December
31 December 2024
2024
1.1. PRODUCT DIFFERENTITATION
1.1. PRODUCT DIFFERENTITATION 01 January
01 January
2023 2023 31 August
31 August20232023
1.1.1. Identify best seller
1.1.1.
product
Identify best seller product 01 January
01 January
2023 2023 31 March31 March2023
2023
1.1.2. Improve the best1.1.2.
sellerImprove
product the best seller product 01 April 2023
01 April 2023 30 April
30 April
20232023
1.1.3. Improve product1.1.3.packaging
Improve product packaging 01 April 2023
01 April 2023 30 April
30 April
20232023
1.1.4. Product pricing 1.1.4.
and product
Product pricing
launchingand product launching 01 May 2023
01 May 2023 31 August
31 August
20232023
1.2. PRODUCT MARKETING 1.2. PRODUCT MARKETING 01 September
01 September
2023 202330 April
30 April
20242024
1.2.1. Know target market 1.2.1. Know target market 01 September
01 September
2023 202330 September
30 September2023
2023
1.2.2. Use of word of 1.2.2.
the mouth
Use ofmarketing
word of the mouth marketing 01 October
01 October
2023 2023 30 April
30 April
20242024
1.2.3. Use print advertisment
1.2.3. Use(Tarpaulin)
print advertisment (Tarpaulin) 01 October
01 October
2023 2023 31 October
31 October2023
2023
1.2.4. Develop facebook 1.2.4.
pageDevelop facebook page 01 November
01 November
2023 202330 April
30 April
20242024
1.3. INCREASE DISTRIBUTION1.3. INCREASECHANNEL DISTRIBUTION CHANNEL 01 May 2024
01 May 2024 31 December
31 December 2024
2024
1.3.1. Identify and select1.3.1.
delivery
Identifylocations
and select delivery locations 01 May 2024
01 May 2024 31 May
31 May
20242024
1.3.2. Identify and select1.3.2.
possible
Identifydelivery
and selectstoresor
possible delivery
distributors
storesor distributors 01 June 2024
01 June 2024 30 June
30 June
20242024
1.3.3. Make a contract1.3.3.
or dealMakewith
a contract
the store
or deal
owners
with the
andstore
distributors
owners and distributors
01 June 2024
01 June 2024 30 June
30 June
20242024
1.3.3. Make delivery time 1.3.3.and
Makeschedule
delivery time and schedule 01 July 2024
01 July 2024 31 July
31 July
20242024
1.3.5. Visit the stores and
1.3.5.deliver
Visit theproducts
stores and deliver products 01 August012024
August 2024 31 December
31 December20242024
2. EXPANSION/GROWTH 2. EXPANSION/GROWTH 01 January
01 January
2025 2025 31 December
31 December 2027
2027
2.1. INCREASE PRODUCT 2.1. INCREASE
OPTIONS-CAKES
PRODUCT OPTIONS-CAKES
AND CUPCAKES AND CUPCAKES 01 January
01 January
2025 2025 30 April
30 April
20252025
2.1.1. Acquisition of materials
2.1.1. Acquisition
neededof materials needed 01 January
01 January
2025 2025 31 January
31 January
20252025
2.1.2. Develop cakes and 2.1.2.cupcakes
Develop cakes
receipts
and cupcakes
and designs
receipts and designs 01 February
01 February
2025 2025 31 March
31 March2025
2025
2.1.3. Product pricing 2.1.3. Product pricing 01 April 2025
01 April 2025 30 April
30 April
20252025
2.2. OPEN 2nd PHYSICAL 2.2. OPEN BAKESHOP
2nd PHYSICAL BAKESHOP 01 May 2025
01 May 2025 30 April 30 April
20262026
2.2.1. Determine and select
2.2.1. Determine
location and select location 01 May 2025
01 May 2025 31 May
31 May
20252025
2.2.2. Conduct market2.2.2.research
Conduct market research 01 June 2025
01 June 2025 30 June
30 June
20252025
2.2.3. Secure funding 2.2.3. Secure funding 01 July 2025
01 July 2025 31 July
31 July
20252025
2.2.4. Building physical2.2.4.
storeBuilding physical store 01 August012025
August 2025 30 December
30 December20252025
2.2.5. Business registration
2.2.5. and
Business
otherregistration
legal matters
and other legal matters 01 January
01 January
2026 2026 31 January
31 January
20262026
2.2.6. Acquisition of equipment
2.2.6. Acquisition
and materials
of equipment and materials 01 February
01 February
2026 2026 28 February
28 February2026
2026
2.2.7. Selection of workforce
2.2.7. Selection of workforce 01 March012026
March 2026 31 March
31 March2026
2026
2.2.8. New location opening
2.2.8. New location opening 01 April 2026
01 April 2026 30 April
30 April
20262026
2.3. OPEN 3rd PHYSICAL 2.3. OPEN BAKESHOP
3rd PHYSICAL BAKESHOP 01 May 2026
01 May 2026 31 December
31 December 2027
2027
2.3.1. Determine and select
2.3.1. Determine
location and select location 01 May 2026
01 May 2026 31 May
31 May
20262026
2.3.2. Conduct market2.3.2.research
Conduct market research 01 June 2026
01 June 2026 30 June
30 June
20262026
2.3.3. Secure funding 2.3.3. Secure funding 01 July 2026
01 July 2026 31 July
31 July
20262026
2.3.4. Building physical2.3.4.
storeBuilding physical store 01 August012026
August 2026 30 December
30 December20262026
2.3.5. Business registration
2.3.5. and
Business
otherregistration
legal matters
and other legal matters 01 January
01 January
2027 2027 31 March31 March2027
2027
2.3.6. Acquisition of equipment
2.3.6. Acquisition
and materials
of equipment and materials 01 April 2027
01 April 2027 30 September
30 September2027
2027
2.3.7. Selection of workforce
2.3.7. Selection of workforce 01 October
01 October
2027 2027 31 October
31 October2027
2027
2.3.8. New location opening
2.3.8. New location opening 01 November
01 November
2027 202731 December
31 December20272027

Legend:
Major Activity
Minor Activity
Sub Activity
Slack Time
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VII. KEY PERFORMANCE INDICATORS

Objectives Qualitative measurement Quantitative Measurement

Attract more sales Increase in Return of 50% increase of sale

Investment

Wider customer segments

Increased product options Product innovation and Added value will be doubled,
additional healthy bread in thus increasing product
menu variations.

Transformation of packaging

Increased business revenue Dominance of the product 90% of the population of

over the next 2 years over the market nearby places are served and
they patronise the product.
Customer retention

Open new location in 4 Most of places in Flora had Have 11 branches inside
years branches of Caligan’s Bakery Flora and 4 outside

Obtain regional market in Dominance of the product all Increase regional market
5 years over the province. share by 15%

VIII. TARGET MARKET / PROFILE OF CUSTOMERS

Caligan's Bakery offers a wide variety of bakery products that ensures product quality,
convenient services and a broad target market which will satisfy a wide spectrum of

7
consumers. To rise above competitors, Caligan's bakery offers a variety of flavors, sizes, and
toppings. Also, it offers nutritious and fresh ingredients that give the customers numerous
options which will recognize their taste preference and satisfaction. Caligan’s Bakery will
serve all the households and residents near Allig, Flora, Apayao. This market encompasses
different people of all ages, children, young adolescents, members of the workforce and old
groups regardless of their income if they have low, middle, or upper income are incorporated
in the target market. The age group represents people who share similar spending habits and
behavioral patterns. Products are offered at an affordable price that’s why potential customers
can come to nearly all people with varying incomes. Caligan’s Bakery also puts up delivery
services where they can supply customers to locations outside its normal geographic area.
This enables the business to pool new customers which results in a wider scope of market.
Customers pluck in the bakery when it is planting season, birthday celebrations, holiday
season and other special occasions. Thus, Bakery shops are seasonal, and products are sold in
greater volumes depending on the seasons.

DEMOGRAPHI
C

Age: 14 and below (young adolescents/children)

15-64 (members of the workforce)

65 and over (senior citizen)

Gender: Male/Female

Income: Lower, middle, and upper income

No. of Households: estimated at 400

8
 GEOGRAPHIC

Region: Cordillera Administrative Region (CAR)

Province: Apayao

Municipality: Flora

Population (2020): 1, 659

Climate: Dry and wet season

OTHER SEGMENTS

Special events: Birthday celebrations

Valentine’s Day

Christmas

Weekends

Planting Season

Holiday Season

IX. INDUSTRY ANALYSIS

This shows the entity's understanding about its position relative to other entities that
produce identical and similar products. Industry analysis indicates the attractiveness of the
entity therein.

9
Competition in the Industry

 The rise of small bakery shops is in trend nowadays. Bakeries compete on price,
quality, and differentiation.
 Competition among businesses within the food industry is intense (e.g. Jollibee,
McDonalds) hence making it less attractive. The business, albeit part of the
industry, practices niche-marketing which serves specific customers and doing
away with the intense competition.

New Entrants
 The biggest challenge for entrants is competing with established firms like
Caligan’s Bakery, Burgos Bakery and stores with Baker’s percent product who
have established their brand awareness, consumer loyalty, and reputation. Low-
margin items and concentrated geographic areas are frequently the keys to new
entrant success.
 The industry is attractive because the entity achieved economies of scale. The
entity already established cost leadership whilst producing products of acceptable
quality which other businesses can’t be at par with.
 High capital requirement is required in manufacturing industries because
equipment and machines are very expensive especially if one is starting a
business. New entrants need the facility and equipment to begin bread production
so those that are unable to secure financing to make these investments will not be
able to participate in the industry.

Power of Buyers
 There are many substitutes for the products offered - be it direct or indirect.
Customers can freely choose whom to buy. Bargaining power of buyers is high
hence it reduces the industry’s profitability making it less attractive. 
 Product outlets
Finding an outlet for bakery products is very difficult for small bakeries. They
provide deliveries for sari-sari stores and groceries in their locality just to dispose
of their product. Thus, buyers can command low prices and volume discounts.

10
 Power of Suppliers
 Due to heightened competition on the wholesale market, the supplier also has
little space for bargaining. Because changing suppliers to fulfill the needs of the
client is easier when one's health is involved, it is a major concern. Entities in this
market are continuously haggling for the best deal, and suppliers are prepared to
give in to meet this demand out of concern for losing a client.
 The industry is attractive because there are many substitute suppliers hence low
switching costs. Suppliers can’t reprimand prices. A company can keep its input
costs lower thus enhancing its profits.
 Increase of prices of raw inputs(inflation)
Bakeries can be affected by inflation or price increase of raw inputs such as flour,
sugar, yeast and oil. But this does not affect much of the supplier's negotiating
power because bakery businesses have a well-developed market for their product.

Threat of Substitutes
  Indirect competitors such as small food stalls and snack houses in the market that
offer hot and cold snacks to the customers have been a threat to bakery shops. 
Bakery products have many substitutes in the market. Breads can be substituted
by cereals, potatoes, rice, banana que, biscuit, turon and others. Thus, bakeries
rely on affordable prices and convenience just to keep customers from switching
to substitute products.

X. COMPETITIVE ANALYSIS

After identifying the competition, we selected the appropriate competitors to

analyse – one which is just around the municipality and one which is nationally known:
Burgos’ Bakery and Baker’s Percent product delivered to local stores.

11
 Caligan’s Bakery Burgos’ Bakery Baker’s Percent
Name
(The business) Competitor 1 Competitor 2

Size (no. of
6 4 2
employees)

Revenue (daily) 2,000 Php 2,000 Php

To satisfy the locals and

To bring the store to To provide breads
make it easy for the
Objectives the people albeit the with utmost quality
customers to be a
distance. and consistency.
customer.

Cost leadership strategy

Commitment to Differentiation
Current strategy whilst having quality
customers strategy leadership strategy
products

Innovation, ideas, Being in the industry

Based on the trend,
experience, and riding the the longest, they
Assumptions there is a market for
tide drives them to create already know the rule
the products offered.
a competitive position. of thumb.

Capabilities

Offers a great range of

Offering made to Offers differentiated
Strengths freshly baked product at
order pastries. products.
lower cost.

Nutritious product by the

Using some additives Preservatives are
proof of not using food
Ingredients to prolong their added to their
color additives and anti-
breads. products.
amag.

Baking practices Bakes only on what is They don’t usually Produces products in
expected to be sold for a display their high volume.
day so that customers will products; focuses
never get stale pastries. more on delivery.

12
 Bakes on large
Bakes on small batches.
batches.

Great and new equipment Outdated yet working

Equipment
to meet demands. equipment

No competitors
Bakery is well-located nearby, located in an Branches are
thus exposure to area where houses are available over all the

Location customers is not an issue. distant from each nation.

other.

Located near the Located in a far-flung

suppliers. area.

Cost leadership Yes Yes No

Delivery is one click Do not support

Makes sales solely
Delivery away. deliveries; physical
through deliveries.
Offers same-day delivery. stores only.

Owners take great

satisfaction in being Great customer
There are tittle-tattles
Customer present every day in their service but do not
about food quality
service location and getting to create relationships
and cleanliness
know the majority of their with them.
customers.

Regular customers are

Free pastry on every
Loyalty schemes given two extra pieces None
100 php order.
every purchase.

By obtaining these vital information about the competitors, the entity can use these to
predict competitor behavior and focus on which competitors to compete, understand their
strategies and planned actions, and create a plan on how to influence competitor behavior to
the firm’s own advantage and make a competitive edge.

13
 An advantage of the entity is baking healthy options especially in the advent of the
pandemic where everyone is affected and became health conscious. Another is it is not only
product-centered, it also gives importance to customer relationship and building affiliation
thereby through loyalty schemes.

XI. MARKETING PLAN

  An entity achieved and planned strong execution in pricing, promotion, and

distribution of the products to grow its market share. In accordance with the first strategic
plan, it is followed by a pricing strategy in which the entity implements an affordable price
for products that are worth purchasing for target customers. A reasonable price as compared
to other rivals, but still achieves the mission of the entity. To reach target customers as they
help to promote and introduce the product identity, the entity uses social media like Facebook
pages, posting frequently and publishing an attractive graphic image to keep customers
informed about the product. Direct marketing comprises face-to-face meetings with
customers and convincing them to buy the products. Customer referrals are a fantastic way
for a business to expand its customer base and acquire new, high-value customers. Customers
grow increasingly interested in the product's new features as it gains popularity. It's time to
promote new products or offer new product content. The packaging is the ideal approach to
make customers more pleasant and to appeal to kids who prefer more eye-catching items. The
business will utilize a corrugated box with vibrant colors and entertaining graphics. As it
stands, the entity intends to expand the selection of flavors, toppings, and fillings for its
products to satisfy customers and create a new market segment. By providing a free taste,
allowing customers to try and introduce entity products. Customers who make a purchase of
two hundred (200) pesos or more can receive a mystery gift as a token of appreciation for
their purchase and patronage. The entity will provide a limited offer for the products where
customers can get a discount when they buy more than five hundred (500) pesos of the
entity's products, which will also serve as participation in the events the entity's platforms
will be having. Additionally, the entity is available to those who want to sell products as
resellers in various localities where shelves will be provided. The entity will be contacting
customers through email after a sale to put customer satisfaction first while leaving the door
open for a promotional opportunity. The goal of these marketing methods is to develop closer
relationships with customers to keep up the growth of media impressions. The bakery thinks
marketing offers a chance to build more recognition and competitive advantage.

14