PINK MUG

“keep calm, chill out and take it easy”

CHAPTER I: EXECUTIVE SUMMARY

NAME OF THE PROJECT

The proposed project shall be registered under the name PINK MUG – “keep
calm, chill out and take it easy”. PINK MUG comes from the combination of pink which
promote a feeling of gentle warmth and nurturing. It lessens feelings of anger and
irritability, surrounding us with sense of love and protection. Mug drinking hot
beverages, such as coffee, tea, hot chocolate or soup- the best way to describe the
nature of the business.

BUSINESS PROPONENT

Pink Mug will position itself as a unique Coffee Shop because it will not only offer
the best tasting coffee like Custom blended Beverages and Pastries like Turtle Pie,
Nebula Coffee Jelly, etc. but also we provides High Class Architecture and Comfortable
Environment. And will going to make products unique that cannot be compared to
create hype, something that will draw attention and make our customers come back.

BUSINESS LOCATION

Pink Mug is a start up Coffee shop and Pastries. Tacloban City will be the target
location. In this area we can get a large pool of potential customers because it is a
walking distance from universities, schools and business offices so it is easy to find by
the people.

TYPE OF OWNERSHIP

The Maize Café Shop is partnership formed by Joyce Mae Empillo, Jedidiah
Maranan, Marco Nino Acuzar, Germain Delicano, and Aji Morallos. Each partner involve
in operation and management of the business.

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TOTAL PROJECT COST

The proposed projects’ investment cost are composed of the building

improvements – a two-storey building to be erected in the Tacloban City, Leyte costing
approximately around P650,000.00, Furniture, Fixtures and Equipment to form part of
the projects operational facility in its daily operations that cost approximately around
P200,000.00, and pre-operating expenses that are indispensable in the start of the
business operations like permits and licenses, inventory, advertising, rental deposits
and office supplies with a cost amounting to around P70,000.00 as a rough estimate.

OBJECTIVE OF THE PROJECT

1. Secure financing for start-up expense, for space and equipment from our capital
P1, 050, 000.
2. Make agreement with coffee distributor and bakery vendors
3. Create a cozy, artist friendly environment
4. Open for business and become the foremost coffeehouse in the area
5. Succeed in coffee business, to gain profit and maintain quality of service
6. Maintain a financially healthy business by exceeding target at least 10 %
7. Achieve monthly and yearly sales target
8. Begin marketing to new customer and competitors
9. Provide a product/service faster and more reliable than those of the competitors.

DESCRIPTION OF THE PROJECT

Pink Mug will catch the interest of the customers because this Coffee Shop is a
place to dream of as you try to escape the daily stresses of life and just a comfortable
place to meet your friends. And also Pink Mug will offer its customers the best prepared
espresso drink, freshly brewed coffee or other beverages that will be complimented with
pastries. And it will offer live acoustic music every night and Free Internet Connection
because it is a WIFI zone.

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HIGHLIGHTS OF THE PROJECT

The business is a specialty beverage shop. It provides its customers ability to

order and take-out their choice of custom-blended espresso drink, freshly brewed coffee
or other beverage.

The business offers its patrons the finest hot and cold beverage, specializing in
specialty coffees, blended teas and other custom drinks. In addition, PINK MUG will
offer soft and fresh-baked pastries.

SUMMERY

 MARKET FEASIBILITY

1. Segment rivalry: At present, coffee businesses have high competitors. There

are so many productions and coffee shops, most of which present different
quality, taste and decoration to be factors of choice for customers. Therefore,
PINK MUG would emphasize on quality, taste and image of coffee shop following
sales point. Giving customers more value when compared with their money is
ensured by incorporating good- to-excellent products, which attributes at a lower
cost than rivals. The best target is lowest (best) costs and prices compared to
rivals offering products
2. Bargaining power of buyers: Bargaining power of buyers is high because there
are so many products such as several beverages, several food sets and others.
Therefore, it can attract customer to buy products from Maize Café shop,
because it can respond customer need in variety.
3. Threat of substitute products: For the coffee -drinking lover, in their opinion,
they cannot find some products to substitute coffee. While, other customers, fruit
beverages would be the other choice.
4. Threat of new entrants: Entrants in coffee business or other competitors is
easily done, because investment would be low budget to high budget. Therefore,
coffee businesses have high competitors. To sum up, coffee business is high in
competition. Therefore, it should use market strategies for establishing brand
loyalty. The results of brand loyalty include buyers’ repeat in buying and would be

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 an important factor to expand new market. Therefore, they should emphasize on
quality of products, deeply understand customer insight and approach their
customer needs.
 TECHNICAL FEASIBILITY
The menu offerings will be supplemented by free books and magazines
that customers can read inside the coffee bar including browsing in the internet
through wifi. The menu of the coffee bar will be built around espresso-based
coffee drinks such as lattes, mochas, cappuccinos, etc. Each of these coffee
beverages is based on a shot of espresso, which is prepared in the espresso
machine by forcing heated water through ground coffee at high pressure, such
espresso shots are combined with steamed milk and/or other additives like
cocoa, caramel, etc.
The coffee bar is open 24 hours from Sunday to Monday. The coffee bar
comfortably seats 36 persons.
 MANAGEMENT FEASIBILITY

o The best organizational structure to adopt in the same manner,

communication will be facilitated from top to bottom and vice versa.
o Democratic atmosphere will always prevail in the business to ensure
hormones interpersonal relationship between managers and employees.
o It will develop the service activity to satisfy the need of customer.
 FINANCIAL FEASIBILITY
The financial need of the business shall be sourced from partner’s equity.
Each of the members shall contribute an initial amount of P210, 000 in cash. Half
of the capital will be used for all expense to be incurred during the pre-operating
period and during the half of the year of normal operation. All purchases shall be
on cash basis.
 SOCIO-ECONOMIC FEASIBILITY
o Partners will make sure of the observance and God-fearing to all of them.
o The management will be responsible in promoting environmental clean air
act and proper waste disposal.

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o Taxes assured for the city government.
o Provide a relaxing place where customers can spend their free time
drinking coffee after a long tiring day.
o Provide jobs to midget to lessen the rate of unemployed
o Supports Filipino products

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CHAPTER II: MARKET FEASIBILITY

TARGET MARKET

Our target markets are young professionals, students and employees who need a
nice, quiet, unique place to relax and do their work and socialize with friends.

 BEST-COST PROVIDER STRATEGY

 PRODUCT AND ACTIVITIES
 PACKAGING STRATEGY
 WIRELESS ZONE

 BEST-COST PROVIDER STRATEGY

Giving customers more value when compared with their money by incorporating
good-to-excellent products, which attributes at a lower cost than rivals. The best
target is lowest cost and prices compared to rivals offering products.
 PRODUCT AND ACTIVITIES
The aim of product and activities is improvement of product designs and
performance features, increased end product and applications. PINK MUG business
has to develop and create new products for responding to customer each season.
 PACKAGING STRATEGY
PINK MUG has two type of cups for hot and cold beverages.
o HOT BEVERAGES
PINK MUG has two pattern of hot beverages cup. One is for drinking
inside the store and another is for on the go or the take-out. Both of these
have the logo of Maize in the skin of cups. This strategy establishes brand
awareness
o COLD BEVERAGES
For the cold beverages PINK MUG will be using cups whether on the go
or drinking inside the store.

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  WIRELESS ZONE
Customer target groups are various types such student, employees, young
professionals and etc., especially students and employees usually use internet
therefore wireless zone at PINK MUG can attract customers.
 LOYALTY CARD
PINK MUG will offer Loyalty Card to their valued consumer, If the consumers will
avail worth of 200.oo php on the product he can use free one hour internet in the
tablet.
COMPETITORS
BO’S COFFEE
Foundation: Founded in 1996
Target Group: Ages between 22-50 yrs. old and high income
It has variety of products, several coffee tastes including spin ice coffee, toppings,
cakes and etc.

STRONG POINT WEAKNESS POINT

 Leader in premium fresh coffee  High cost of management
business and they have already
make consumer loyalty.
 They have more selling experience
in coffee

DREAM CAFÉ
Indirect competitor- who sells product in a different way, that is alternating choice to
purchase In this case, indirect competitor is fruit beverage shop nearest to PINK MUG.
However, that shop is small and sells different beverages or refreshment. Therefore, it
does not affect the coffee shop so much.
JOLIBEE
STRONG POINT WEAKNESS POINT
 They have already have brand  They only serve coffee and hot
image to the customer. chocolate during breakfast time

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  They offer breakfast meal

MCDONALDS

STRONG POINT WEAKNESS POINT

 They also offer breakfast meal and  Slow service
some establishment have Mc Café
inside

DEMMAND AND SUPPLY ANALYSIS

Sales
passersby
20%

stu-
dents
50%

professional
30%

The figure shows that our target market would like to try our corn coffee, 50% for
the students, 30% for young professional and 20% for people who pass by.

DEMAND AND SUPPLY

TARGET MARKET POPULATION
EVSU 6,000+
LNU 4,000+
Since the whole population cannot be considered as a target market, the
researcher conducted a survey to get the percentage of those who are willing to avail
our products. Through the said survey, the researcher comes up with 79% as the
percentage of the willingness of our target market in availing the products.

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 TARGET MARKET % OF WILLINGNESS TARGET MARKET
EVSU 79% 4,740
LNU 79% 3,160

MARKETING STRATEGY

Healthy and light meals are the key point of differentiation for the business
because the coffee bar has the capabilities and flexibility to develop new menu to meet
the changing needs and tastes of the customers.

PRICING

PINK MUG will offer two sizes of coffee drinks, 12 ounce and 20 ounce. The
pastries and cookies will range from P25-P75

ADVERTISING AND PROMOTION

PINK MUG plan to spend moderately on advertising and promotion. Intend to
advertise in a social networking site such as facebook and twitter. It will do have flyers
and leaflets to promote the business and will also offer loyalty card program to valued
customer.
We intend to advertise in Local Newspapers and offer a discount to our first 50
customers. We will also send out ads and fliers.

CHAPTER III: THECNICAL FEASIBILITY

 Raw materials will be obtained during its freshness from the source
 Management will provide cleanliness of the shop especially the products for the
satisfaction of our consumer.

OPERATION PROCESS

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GREETINGS ORDERING

PAYMENT

SERVING

GREETING

1. When the customer enters our shop, he/she will be greeted by our staffs politely.

2. The customer will choose to our different coffee variants.

3. The customer will pay the amount

4. After paying, the customer will wait, sit back and relax and the order will be served.

5. When the customer leaves the shop, he/she will be greeted by our staffs.

SCHEDULE OF WORK
MORNING SCHEDULE
Employees Midget 1 Midget 2 Barista 1

Time In 6:00 am 6:00 am 6:00 am

Time Out 2:00 pm 2:00 pm 2:00 pm

Break 10:00 - 10:30 am 10:30 - 11: 00 am 9:30 - 10: 00 am

EVENING SCHEDULE

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 Employees Midget 3 Midget 4 Barista 2

Time In 2:00 pm 2:00 pm 2:00 pm

Time Out 11:00 pm 11:00 pm 11:00 pm

Break 5:30 - 6:00 pm 6:00 - 6:30 pm 6:30 - 7:00 pm

TOOLS AND EQUIPMENT

 Coffee Maker
 Coffee Machines
 Espresso Grinder
 Coffee Grinder
 Decanter
 Water Filter
 Coffee Decanter
 Blender
 Food Service Equipment (microwave, toaster, dishwasher, refrigerator,
blender, etc.)
 Storage hardware (bins, utensils racks, shelves, food case)
 Counter Area Equipment (counter, sink, ice machines, etc.)
 Serving Area Equipment (plates, glasses, flat wares, trays)
 Tea Brewers
 Airpot / Thermal Brewer
 Coffee Cups

PLANT LOCATION
The PINK MUG will be at Tacloban City near EVSU and LNU.
The place is in a good location to put up a business like coffee shop as it is
located at the main road which is surrounded by a lot of schools, colleges and
universities. Our target markets are young professional, student and employees which
are most likely to be found in this place

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RAW MATERIAL
PINK MUG proud to say that the product is locally made, to show support for the
Filipino products.
Organically-grown coffee produced without the aid of artificial chemical
substances, such as certain additives or some pesticides and herbicides. Organic
agriculture can strengthen the natural environment's resistance to disease. For
example, coffee of this standard is generally shade-grown, a quality that promotes
forest preservation. Other benefits of this process include the minimization of soil
erosion and participation in a healthy ecosystem. Bird populations develop mutually
beneficial relationships with coffee fields, enjoying the habitat while keeping insect
populations under control and naturally fertilizing the soil.

UTILITIES
 MAN-POWER RECRUITMENT

All employees that will be hired in our establishment must present all legal
papers.

 NBI CLEARANCE
 SSS
 OTHER ID such as VOTERS I.D and POSTAL I.D
 BARANGAY CLEARANCE
 MEDICAL CERTIFICATE

STAFFING

We will hire FOUR midget 2 boys and 2 girls. We will also hire 2 barista
either a boy or a girl.

WASTE DISPOSAL

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 The various waste materials produced by industries maybe classified generally
as solids, gaseous or liquid. Solid wastes are directly related to a loud pollution, gas
liquid to air and water pollution, although all of them have combined and interrelated
effects on pollution.

1. Eliminate the source

2. Recovery of waste products, before deciding how to discard waste materials should
always think for recycle, reuse or for sale.

3. Regulate how to fit dilution

4. Divert waste to other points

5. Segregate the materials to non-biodegradable and biodegradable

CHAPTER VI: MANAGEMENT ASPECTS

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ORGANIZATIONAL CHART

There are several legal forms of organizing and operating business. Coffee shop
requires a small capital therefore a financially stable form of business is necessary.
Thus the group decided to structure the business as a partnership and shall be called,
PINK MUG
The organizational structure will be a single pyramid style with the owners putting in as
much work as the employee.

GENERAL MANAGER

STORE MANAGER
ACCOUNTANT

CREW CASHIERR
R

There are functioning groups within the company; production, sales, and
marketing and general and administrative. Production involves the barista and the staffs
or crews.

General and Administrative involves the Store manager. Manage the facilities,
equipment, inventory, payroll and other basic operation process.

This chart shows that PINK MUG organizational chart, which presents procedure
of duty, evaluate and control quality in business.

JOB DESCRIPTION

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STORE MANAGER- ultimately responsible for the day-to-day operations (or
management) of a retail store. All employees working in the store report to the store
manager. A store manager reports to a district or general manager.

STAFF- full-time employee but they work in period in time; can be a cashier or assists
the customer.

ACCOUNTANT- records the account and any financial transaction of the business.

QUALIFICATION OF SERVICE CREW/STAFF:

 Male or Female
 Midget
 18 yrs old to 25 yrs old
 has 1 year experience in the said job is an advantage
 willing to be trained

QUALIFICATION OF BARISTA

 Male or Female
 18 yrs old to 25 yrs old
 has 2 years experience in the said job is an advantage

MANAGEMENT TEAM

We will share management and supervisory responsible equally.

RULES AND REGULATION

. Verbal Reprimand - document version with an erring employees censuring him for the
commission of an offense defined and penalized in the rules and a warning that a
repetition of the same commission of similar offense will be dealt with more severely.

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2. Written Reprimand - is a memorandum to an erring employee censuring him for the
commission of a offense and penalized in the rule and the stern warning that a
repetition of the same commission or a similar offense will be dealt with more severely.

3. Suspension - is a temporary detachment of an employee from service without pay.

4. Preventive Suspension - is an on - the - spot suspension prior to and or during an

investigation, were the employee presence within the company premises would pose a
serious imminent threats or danger to life and property to his co-employee, his employer
or to the company property.

5. Dismissal - is an involuntary separation from service. A dismissal employee forfeits

all his benefits and privileges without prejudices to whatever legal action that the
company may take against him.

6. Restitution Operation of the Damage Caused - in addition to the appropriate

penalty in case involving loss of or damage of property the offender will be required to
place or pay to the loss/damaged.

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CHAPTER V: FINANCIAL ASPECTS

TOTAL PROJECT COST

. The proposed projects’ investment cost are composed of the building

improvements – a two-storey building to be erected in the Tacloban City, Leyte costing
approximately around P650,000.00, Furniture, Fixtures and Equipment to form part of
the projects operational facility in its daily operations that cost approximately around
P200,000.00, and pre-operating expenses that are indispensable in the start of the
business operations like permits and licenses, inventory, advertising, rental deposits
and office supplies with a cost amounting to around P70,000.00 as a rough estimate.

INITIAL CAPITAL REQUIREMENT

The financial need of our business shall be sourced from partner’s equity. Each
of the members shall contribute an initial amount of P210, 000 in cash. Half of the
capital will be used for all expense to be incurred during the pre-operating period and
during the half of the year of normal operation. All purchases shall be on cash basis.

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CHAPTER VI: SOCIO-ECONOMIC ASPECTS

BACKGROUND INFORMATION

The business is a new coffee shop venture located in Tacloban City. A newly
renovated section of city with computer shops, schools and colleges along the main
street. We specialize coffee made up of tea, cappuccino, frappes and pastries.

Our target markets are young professionals, students, employees and those who
love to drink coffee.

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