SENIOR

Entrepreneurship HIGH
SCHOOL

Module
PRODUCT / SERVICE PLAN 12
Quarter 2

Entrepreneurship
Quarter 2 – Module 12: Product / Service Plan
First Edition, 2020

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Published by the Department of Education - Schools Division of Pasig City

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 SENIOR
Entrepreneurship HIGH
SCHOOL

Module

12
Quarter 2

PRODUCT / SERVICE PLAN

Introductory Message

For the facilitator:

Welcome to the Entrepreneurship with Grade 12 Self-Learning Module on

Product / Service Plan.
This Self-Learning Module was collaboratively designed, developed and
reviewed by educators from the Schools Division Office of Pasig City headed by its
Officer-in-Charge Schools Division Superintendent, Ma. Evalou Concepcion A.
Agustin, in partnership with the City Government of Pasig through its mayor,
Honorable Victor Ma. Regis N. Sotto. The writers utilized the standards set by the K
to 12 Curriculum using the Most Essential Learning Competencies (MELC) in
developing this instructional resource.

This learning material hopes to engage the learners in guided and

independent learning activities at their own pace and time. Further, this also aims
to help learners acquire the needed 21st century skills especially the 5 Cs, namely:
Communication, Collaboration, Creativity, Critical Thinking, and Character while
taking into consideration their needs and circumstances.

In addition to the material in the main text, you will also see this box in the
body of the module:

Notes to the Teacher

This contains helpful tips or strategies
that will help you in guiding the learners.

As a facilitator you are expected to orient the learners on how to use this
module. You also need to keep track of the learners' progress while allowing them
to manage their own learning. Moreover, you are expected to encourage and assist
the learners as they do the tasks included in the module.
 For the Learner:

Welcome to the Entrepreneurship Self-Learning Module on Product / Service

Plan!

This module was designed to provide you with fun and meaningful
opportunities for guided and independent learning at your own pace and time. You
will be enabled to process the contents of the learning material while being an
active learner.

This module has the following parts and corresponding icons:

Expectations - These point to the set of knowledge and skills

that you will learn after completing the module.

Pretest - This measures your prior knowledge about the lesson

at hand.

Recap - This part of the module provides a review of concepts

and skills that you already know about a previous lesson.

Lesson - This section discusses the topic in the module.

Activities - This is a set of activities that you need to perform.

Wrap-Up - This section summarizes the concepts and

application of the lesson.

Valuing - This part integrates a desirable moral value in the

lesson.

Posttest - This measures how much you have learned from the
entire module.
 EXPECTATIONS

LEARNING COMPETENCIES: Manifest understanding of starting and operating a

simple business plan.

LEARNING OBJECTIVES: After going through this module, you are expected to:
1. identify the different parts of a Product/Service Plan;
2. create a comprehensive Product/Service Plan; and
3. appreciate the importance of a Product/Service Plan in
creating a Business Plan.

PRETEST

Multiple Choice: Encircle the letter of the correct answer on the given
choices below.

1. It is a part or section of your business plan that outlines your product or

service.
A. Market Plan B. Product/Service Plan
C. Executive Summary D. Financial Plan

2. It tells about the product or service that the entrepreneur offers to its target
market.
A. Product/Service Description B. Technology
C. Logistics D. Financial Statement

3. It provides information about your start-up and future plans of your products
that will make look attractive to your potential customers in the future.
A. Sales Literature B. Future Products and Services
C. Technology D. Executive Summary

4. This is where you acquire your first permit when you start a business.
A. DTI b. DOLE c. BIR D. City Hall

5. The following sentences are parts of a product/service plan except for?

A. A description of the products or services you are offering or plan to offer.

B. How your products and services will be priced.
C. A paragraph or so on how orders from your customers will be processed
or fulfilled
D. Sales projections
 RECAP

A business plan is a fundamental document that any startup

business needs to have in place before beginning operations. A business
plan is a written document that describes the company’s core business
activities, objectives, and how to achieve their goal. A business plan lays out
a written roadmap for the firm from each of a marketing, financial, and
operational standpoint. Start-up companies use a business plan to attract
more investors. Good business plans should include an executive summary,
products and services, financial planning, marketing strategy and analysis,
financial planning, and a budget.

Let’s take a short recap of our lesson last time. Give a brief explanation of
the contents of the following parts of a business plan:

Executive Summary

___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

Management and Organization

___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

LESSON
Mr. Ramos is a private employee who wants to start a trading business. He
prefers to sell seafood products such as shrimps, crabs, mussels, and other
seashell products, which are in demand in the seafood restaurant business. He
does not have experience in this kind of this field. So, what will be the best move
for him to make his seafood trading business profitable?

In this lesson, we will be able to help him with how to start his business by
simply creating a business plan, which will enable him to know his competitors in
the business and also know more how to offer his products in the market.

When starting a business, financial forecasting may seem overwhelming.

Creating revenue and growth forecasts can be one of the trickiest parts of business
planning and fundraising for startup entrepreneurs. These numbers are likely to
change dramatically once you get going, but they are still needed and expected.

Forecasting is calculating or predicting future events that usually comes

from the result of a study and analysis of available pertinent data. It helps us to
anticipate the future happening or condition. It takes a lot of time but the more
important thing is that proper financial forecasts will help us to develop operational
and staffing plans that will make help the business a success.

We had discussed the first two parts of a business plan in our previous: The
Executive Summary and Management and Organization. Let’s proceed on the next
part which is the Product/Service Plan.

Product/Service Plan

The products and services section of your business plan is more than just a
list of what your business is going to provide. Especially if you intend to use
your business plan to get funding or find partners, your products and services
section needs to showcase the quality, value, and benefits your business offers.

The products and services section of your business plan outlines your
product or service, why it is needed by your target market, and how it will compete
with other businesses selling the same products and services. Your product and
services section should include:

1. Product & Service Description – this section offers a detailed description of

your product or service and how it fits the market. It must be precise to attract
your target market’s attention. Make sure to provide information about your
competitor’s offerings and how your product is similar or different from them.

2. Competitive Edge – in this section, you should provide your key strengths such
as your advantages to other competitors, your timeliness in distribution, and
customer service. Also, your key weaknesses and the steps on how to overcome
this to build a strong relationship with your target market.

3. Sales Literature – in this section, you should be able to explain the distribution
process for both current and potential customers. This will include brochures,
flyers, newsletters, as well as other print media such as print advertisements.

4. Sourcing – in this section, you need to provide information on how you will
acquire your product directly to suppliers with a minimal cost to offer competitive
prices to the customers in the market with a great quality.

5. Technology – in this section, it should be accurate information on how your

company provides an efficient service by using the latest technology that will allow
you to monitor the movements within your company in real-time phase from order
monitoring to stock monitoring, sales, distribution processes and the after-sales
such as returns and collections.

6. Future Products and Services – in this section, you will discuss your start-up
plans on how to provide a better service to your potential customers and also the
plans if you wish to take a higher level of market distributions. You may also
include the future products that you think will be more attractive to customers in
the future.

Let’s take a look with the example below for a Coffee Distribution Business Plan
(Product Section)

The Coffee Warehouse

Products

The Coffee Warehouse will provide a first-class delivery service of quality hot and cold
beverage related supplies, including whole bean or ground coffee, flavor syrups, jet teas,
fruit smoothies, bubble teas, concentrated milk, fresh baked goods, and assorted paper
supplies. Our services will include invaluable trade resources, effective promotional
programs, custom-designed marketing material, informative monthly newsletters, training,
and product demonstrations, as well as information on the latest market trends in the
coffee/specialty beverage industry.

3.1 Product & Service Description

PRODUCT DESCRIPTION
The Coffee Warehouse will carry a variety of quality products that will enable us to provide
full-service delivery to espresso stands and coffee houses. Our underlying philosophy in
selecting products is to choose lines that will bring consistent quality, competitive prices,
and product satisfaction to our customers. We have personally researched and sampled
each of the following products that we offer to ensure the quality we guarantee.

• Lowery’s Gourmet Whole Bean and Wired Willey’s White Coffee

• Assorted Gourmet Syrups & Coffee Toppings
• Chocolate, White Chocolate, and Caramel Syrups/Sauces
• Oregon Chai Concentrate
• Jet Cafe and Jet Tea Fruit n’ Tea Freeze
• Cappuccina line of product
• Big Train line of product
• Red Bull Energy Drinks
• Good Cow Concentrated Milk with Custom Dispensing Equipment
• Fresh Baked Goods
• An Assortment of White, Pre-printed Paper, and Clear Beverage Cups Systems – as
well as an assortment of other paper supplies

At this time, the majority of these products are only available to customers through
wholesale vendors such as Cash and Carry retail outlets – therefore it is the customer’s
responsibility to acquire these products by their own means. The Coffee Warehouse will
make these same products available through our high quality, full-service delivery –
bringing these products directly to their doorstep at a competitive price.

SERVICE DESCRIPTION
An important component of our business is not just our products, but our service. In
addition to our full-service delivery, the following are other important service elements that
we will offer to our customers:

• Ideas to help our customers increase sales through menu development, creative
promotions, co-op advertising, and much more.
• Custom-designed marketing material such as printed banners, promotional posters,
punch cards, pre-purchased beverage cards, reader boards, etc.
 • Distribute a monthly newsletter featuring the latest coffee trends, new industrial
equipment, breaking trade news, promotional ideas, new creative recipes, and
upcoming events.
• Samples of the latest product release – with eye-catching point-of-sale to advertise
new items to the end consumer.
• Routine equipment maintenance and training.

3.2 Competitive Edge

KEY COMPETITIVE STRENGTHS

No other wholesaler in the market offers full-service delivery with a variety of products we
feature. We are better positioned than our main competitors to take advantage of the
increasing demands of coffee and specialty beverage supplies because we focus exclusively
on high-quality distribution and customer service. In addition to the variety of products we
feature, The Coffee Warehouse has exclusive distribution rights to Good Cow’s concentrated
milk/dispensing system. This product is not currently available in our market by any other
supplier.

KEY COMPETITIVE WEAKNESSES

Our primary weakness is that we are a new business competing largely against established
suppliers. To significantly build sales, we must not just find new customers – we must take
customers away from existing suppliers. However, by offering a superior selection of
supplies, new groundbreaking products to the market, and focusing on high-quality service
and full-service delivery, we feel will quickly establish accounts and build strong
relationships. Co-founder Jennifer Smith has had many discussions with owners of coffee
and espresso businesses that confirm this opinion.

3.3 Sales Literature

Sales literature to be distributed to both current and potential customers will include
brochures, flyers, newsletters, as well as other print media such as print
advertisements. Jennifer Smith is highly skilled in graphic design and desktop publishing
and has quality design and printing equipment to publish professional pieces at a low cost.

3.4 Sourcing

The Coffee Warehouse will purchase the product directly from manufacturers, as well as
master distributors. Because this eliminates the broker or “middle man,” this allows us to
operate on a 25-30% profit margin, while providing our customers with competitive prices.

To further reduce costs, The Coffee Warehouse plans to share product shipments out of
California with distributors operating in Portland, Oregon, and Tri-Cities, Washington.
Other products not being shipped directly to Spokane will be purchased and picked up in
Seattle, Washington. The Coffee Warehouse plans to send a truck to Seattle on a bi-weekly
basis to pick up the product, thus cutting costs by an average of 5%.

3.5 Technology

To streamline the efficiency of our distribution methods, The Coffee Warehouse plans to use
the latest in cutting edge technology – not only in the warehouse – but also in the trade.

All of our drivers/sales representatives will be equipped with Thinque MSP handhelds and
software. Thinque MSP applications will reduce field expenses, decrease day’s sales
outstanding, and increase worker efficiency. Features can be used in or out of the
warehouse and include managing returns and collections; adjusting item price, profit or
margin; applying promotional items to an account; streamlining orders; tracking inventory;
reducing out-of-stocks; and providing sales history reports. All information recorded in the
handheld is available in real-time to be viewed by management in the office.

3.6 Future Products and Services

Within the first year of business, The Coffee Warehouse intends to open a retail/wholesale
store and high-quality showroom. Products will be available for purchase by both our
wholesale customers who may need products between delivery days, as well as retail
consumers interested in purchasing a product for their home use. We will also offer a
showroom that will feature equipment, supplies, trade resources, and information on
marketing services with examples of marketing and promotional material available to
customers.

With the addition of the product showroom, The Coffee Warehouse will offer customers
quarterly product and training demonstrations that will be presented by trained beverage
experts from the industry.

The Coffee Warehouse also plans to hold semi-annual trade shows for current or potential
customers. These trade shows will allow customers the opportunity to sample products,
talk to manufacturers, learn about new industry trends, review marketing material, and
network with other business owners in their market.

The business plan products and services section is the centerpiece of your plan.
While other sections of your business plan are important, the products and services section
is the essence of your business and the point around which every other part of the business
plan is built.

ACTIVITIES

ACTIVITY 1: MATCHING TYPE. Identify the different parts of a Product/Service

Plan. Match the correct meaning with the given words below. Write the letter of
the correct answer before the number.
___1. Sourcing A. A company’s strength and weaknesses.

___2. Technology B. The product’s qualities which will

___3. Product/Sevice Description
___4. Sales Literature
___5. Competitive Edge
attract customer’s attention.
C. How you acquire your product at a
minimal cost without suffering your
product’s quality.
D. It tells you about company’s efficiency
in dealing with your customer’s needs
such as ordering and after-sales.
E. It deals with connecting with your
potential customers through flyers,
brochures, and other promotional ways.
 ACTIVITY 2: CREATE YOUR OWN. Fill out the necessary details needed in the
box provided below. You may use the internet for research purposes. Use the
necessary sheet if needed. An example is given for your reference.

T-shirt Detergent powder Electric Fan

Purpose of the Offers a variety of
product options in choosing
their design. It is
designed to ensure the
comfort and trend style
in the market for our
customers.
Product’s unique It has a unique feature
feature such as it is made with
high quality the fabric
and you can personally
choose your design
printed using high
quality of screen
printing.
Material The Screen printing
requirement and press, Wood screen,
sources of supply Squeegee, Silkscreen
fabric ink, photo
emulsion, Light bulb,
shirt, and acetate film
which is supplied from
a specialty store in
Divisoria.
Production/Service Creating a design,
Process and Prepare the frame,
Controls Transfer Image, Clean
the screen, Screen the
t-shirt, and Clean up.
(take note: kindly
include a detailed
process on how to
make a t-shirt
printing.)
Distribution We have an online
Logistics store for easily
purchase and also you
can visit us in our
physical store located
in Pasig City. Please
visit our website for
more promotional
items.
Regulatory and We are a DTI registered
other compliance company. We also
issues have a permit to
operate from Barangay
and City Hall. Also, we
are BIR registered
company. Please see
attached images for
your references.
ACTIVITY NO. 3: Give the importance of a Product/Service Plan in creating a
comprehensive Business Plan. Write your answers on the circles provided below.

Product/
Service
Plan

WRAP-UP

ACTIVITY: QUESTION-BASED: Directions: Write your answer on the bulleted list

provided below.

What are the key concepts in creating a Product/Service Plan?

• ___________________________________________________________________________

• ___________________________________________________________________________

• ___________________________________________________________________________

• ___________________________________________________________________________
 VALUING

QUESTION BASED. Directions: Write your answers below.

What are the three (3) important things you have learned today?

1.________________________________________________________________________________
__________________________________________________________________________________
2.________________________________________________________________________________
__________________________________________________________________________________
3.________________________________________________________________________________
__________________________________________________________________________________

POSTTEST

Directions: Read each statement carefully. Write T if the statement is True and F if
it is False.
_______1. A product/service plan is a part of a business plan which tells the
financial summary of your business.

_______2. Product/Service Description is the same with Product Specifications.

_______3. Fliers, brochures, newsletters, and printed advertisements are

components of the Sales Literature section.

_______4. A good product/Service Plan requires detailed information about your

product features, distribution, and processes.

_______5. A business plan is complete without a Product/Service Plan section.

 KEY TO CORRECTION

5. F 5. A 5. D
4. T 4. E 4. A
3. T 3. B 3. B
2. T 2. D 2. A
1. F 1. C 1. B
POSTTEST ACTIVITY 1 PRETEST

References
BOOKS

Agustin-Acierto, Marife 2017. Entrepreneurship. Intramuros, Manila:

Unlimited Books Library Services & Publishing Inc.

Edralin, Divina M. 2019. Entrepreneurship. Talayan, Quezon City:

Vibal Group Inc.

WEBSITES:
https://www.thebalancesmb.com/business-plan-format-1794224

https://www.bplans.com/coffee-distribution-business-plan/products/