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Republic of the Philippines

Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF CALAMBA CITY
PALO ALTO INTEGRATED SCHOOL

SNAQU1TY
A Business Plan Presented by:
Group 1

Alcasid, Jhehannah Antonio, Justine Harold


Bernardino, Dsabel Lacatan, Kimberly
Valenzuela, Valerie Dela Cruz, Ma. Cielo Ann Rose
Perez, Guillian Garcia, Kyla
Comia, Jan Herante Urot, Annabelle
Llarena, Cherubim Praise Jose, Shawn Carlzen
Avila, Allice Kassandra Gelilio, Klark Dave
Pagaspas, Jhan Merwin Delos Reyes, Jagrid Morris
Legaspi, Aleya May Adarbe, Ashley
Belesario, Nicole

Grade 12 ABM-Equity

Academic Year 2022-2023


Acknowledgement

The members of SNAQU1TY would like to express their gratitude and appreciation to

those who have contributed to the success of creating this business plan. They extend their thanks

to their mentors, and teachers for providing invaluable guidance and support throughout the

development of their business plan.

They would also like to acknowledge every respondent who participated in their market

research survey. Their input and feedback have helped shape SNAQU1TY's products and services

to better meet the needs and preferences of their target market.

Lastly, they would like to express their sincere gratitude to their families and friends for

their encouragement, support, and understanding. Their unwavering support has been instrumental

in keeping them motivated and focused on achieving their goals.

SNAQU1TY thanks everyone for their support, guidance, and encouragement, and they

are excited to begin their business journey with the help and support of those around them.

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Executive Summary

Introduction

SNAQU1TY has identified a gap in the market for healthy and unique snack options, and

plans to leverage this opportunity by using fresh and locally sourced ingredients to create high-

quality snacks that meet the dietary needs and preferences of students.

Company Overview

SNAQU1TY is a snack business located within the school premises that aims to satisfy

the needs and hunger of Palo Alto Integrated School students by offering them unique and

delicious snacks such as ube turon and malunggay pizza within the school premises.

SNAQU1TY is owned by 19 members of Group 1 from Grade 12 ABM Equity students of the

Academic Year 2022-2023. Each member brings a unique set of skills and strengths to the

business, and together they form a cohesive team that is committed to delivering exceptional

customer service and high-quality snacks.

Product Overview

SNAQU1TY offers a unique snack called "M pizza" which uses bread slices as the base

instead of traditional pizza crust topped with the special ingredient “moringa leaves. The bread

slices are folded and toasted, it will be sold along with the snack "ube turon," which is made with

ube jam and banana wrapped in a crispy spring roll wrapper.

Target Market

SNAQU1TY’s business and marketing efforts will be focused on catering to the students

of Palo Alto Integrated School. The company will prioritize offering high-quality snacks and

exceptional customer service to capture the interest of its target market.

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TABLE OF CONTENTS

TITLE PAGE i

ACKNOWLEDGEMENT ii

EXECUTIVE SUMMARY iii

CHAPTERS

I. COMPANY OVERVIEW

Name and Logo 1

Mission Statement and Vision Statement 2

Objectives of the Company 3

II. PRODUCT OVERVIEW

Definition of the Product to be Sold 4

Unique Characteristics and Features 6

Product Viability 6

III. MARKETING PLAN

Competition and Industry Information 9

Customer Profile 14

Market Segmentation 15

Market Size 18

Marketing Strategy 21

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IV. MANAGEMENT AND OPERATIONAL PLAN

Management Plan 25

Operational Plan 29

V. FINANCIAL PLAN

3-Year Projected Market Share Profit 36

3-Year Projected Income Statement 37

BIBLIOGRAPHY 42

APPENDICES 47

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Chapter I
COMPANY OVERVIEW

Introduction: Name and Logo of the Company

SNAQU1TY was derived from the words 'snack,' 'equity,' and 'number one.' The business

aims to sell snacks made with quality ingredients by Equity, targeted towards the students of

Palo Alto Integrated School (known as 'cuties'). The number 1 represents the top-notch quality of

the products the business offers. Therefore, the business came up with the tagline:

“SNAQU1TY: SNACK NA QUALITY, SWAK SA MGA CUTIE.”

The logo comprises the name of the business, "SNAQU1TY," the tagline, and the product

that will be offered for sale. According to Morcillo, N. (2022, June 2), using Poppins font has a

wide range of readability. Using this font makes it easy for the customers to recognize the

business’s tagline indicated in the logo. Based on Dafont (2019, December 3), Borsok font is

perfect for headings, therefore we used it in our business’s name to highlight our brand. We chose

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the solid and metallic shade of red since it attracts the customers attention, and radiates strong

energy (Olesen, J., 2013, March 18). According to Amber Color, Codes and Facts, the color amber

is an energetic color, it shows excitement and its vibrance promotes happiness. By using these

colors, the business will be able to attract more customers and boost their moods. To emphasize

the purpose of the logo and to draw attention to it, an image of the product offered by the business

has been incorporated at the center of the logo, thereby enhancing its visibility and appeal.

Mission and Vision of the Company

Mission Statement

The mission of SNAQU1TY is to consistently provide customers with delicious and

freshly made snacks yet a competitive product and to captivate and sustain customers with

healthy, quality, and delicious food and excellent service at a cheaper and more affordable price.

Moreover, the business hopes to satisfy customers with its promising taste and establish a

presence as a manufacturer of food products.

Vision Statement

SNAQU1TY envisions being recognized as the top young entrepreneur in the industry by

delivering a healthy-based and affordable product that will meet the expectations of the target

market. The company aims to achieve profitability, which will allow them to fund the next

generation of ABM students.

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Objectives of the company

● To generate sufficient revenue during the ten-day work immersion

period to recover the initial investment (capital), ensuring the

business becomes financially viable and self-sustaining within a

profit margin of 5% -10%.

● To prioritize customer satisfaction by providing high-quality,

delicious healthy snacks, and exceptional customer service,

resulting in positive feedback, repeat customers, and increased

sales.

● To actively learn and acquire new skills, knowledge, and insights

related to food business management, marketing, and operations

during the work immersion period, and apply them to improve the

business and foster personal and professional growth.

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Chapter II

PRODUCT OVERVIEW

Definition of Product or Service To Be Sold

The cost of purchasing a pizza today ranges from roughly P50 and higher, and most of

the time people couldn’t afford even one slice. However, it is often observed that even a single

slice of pizza may be unaffordable for some individuals, particularly students whose allowances

may not be sufficient to cover the expense. Moreover, there is growing awareness of the

potential health concerns associated with consuming pizza, as it is often considered a less healthy

food option. One of the causes of overconsumption is believed to be the growth of portion sizes

over the past 30 years. Larger amounts are chosen for foods that produce lower levels of

projected satiation, according to previous research on the factors that influence portion selection

for foods (D. Labbe et al., 2017). However, Simiral and Goto's (2011) research suggests that by

adjusting the proportions of cheese and crust, students would be willing to adopt a healthy

alternative to normal pizza.

In the present, there are healthy pizza options, but not everyone can afford to buy them,

even if they wish to, especially students in a tight financial situation. Sarah et al. (2015) stated

that, due to limited allowances, students buy food primarily because it is cheap and delicious.

The nutrient content of the food is the least important factor for them. Considering all of that,

SNAQU1TY shall utilize cheaper alternative product(s), prioritizing the healthy benefits of the

product to customers. The business owners seek to mitigate the adverse effects of traditional

pizza by utilizing healthy ingredients in the recipe with bread and moringa leaves or commonly

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known as “malunggay”. This strategic approach aims to minimize the perceived negative impact

on health associated with traditional pizza, aligning with a focus on incorporating health-

conscious ingredients into their product.

“M Pizza”

SNAQU1TY’s “M pizza” is a snack that is made by using bread slices as the base instead

of a traditional pizza crust. The bread slices are topped with pizza sauce and moringa leaves,

along with other toppings of the customers’ choice, such as ham, hotdog and cheese or

pineapples. The bread slices are then folded and toasted to be served to the customers. The bread

pizza is going to be sold along with ube turon. It is a Filipino snack or dessert made with ube

(purple yam) jam and banana wrapped in a spring roll wrapper and cooked until crispy.

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Unique Characteristics and Features

SNAQU1TY’S “M Pizza” is tasty, fresh, nutritious, and a delicious comfort food that

will satisfy your cravings. Incorporating malunggay into pizza can set it apart from traditional

pizza, providing a unique selling point for consumers looking for something new and

different.The conventional method of “M Pizza” involves cooking them in the oven toaster when

making it, you also need to have good timing and careful monitoring of the cooking process to

ensure that the crust is crisp, the cheese is melted, and the toppings are cooked to perfection.

● Nutritious- Ingredients that are used in our product are nutritious, malunggay contains

several important nutrients, like calcium, potassium, zinc, magnesium, iron and copper.

● Homemade- Our products are homemade to make sure that our homemade food is

prepared in clean surroundings with the utmost care and to ensure the food's quality

because it went through our hands and process.

Product Viability

Market Information

The canteen is the only source of food in the school and monopolizes the market inside

Palo Alto Integrated School. Although there are alternative food options available outside the

school premises for students, they are prohibited from leaving during school hours to make

purchases. But the canteen already offers healthy nutritious foods that students need; according

to DepEd food guidelines, there are 3 food categories that must be followed. The green category

includes foods and drinks that should always be available in the canteen; the yellow category

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includes foods and drinks that should be served carefully; and the red category includes foods

and drinks not recommended on the canteen menu.The canteen includes a variety of food

options, however they are quite common foods and insufficient to meet the needs of the students.

The canteen has had a great performance in providing for the needs of the students for many

years, and even though many students criticize the quality and price of the foods that it offers,

they have no choice but to buy them. SNAQU1TY aims to address this problem by presenting

new and healthy products that students of Palo Alto Integrated School could consume to satisfy

their needs and wants,

SWOT Analysis

Strengths:

● Versatility- It can be customized to suit a wide range of tastes and dietary preferences

● Good quality and superior taste -The products are prepared using the very best quality

ingredients, sourced for their superior taste and distinctive taste.The aroma of melted

cheese, healthily seasoned tomato sauce, and fresh toppings all come together to create a

flavor that is simply irresistible.

● Affordable pricing range - Products are offered at affordable rates.

Weaknesses:

● Not enough brand recognition- SNAQU1TY is still not yet known to the market.Palo

Alto Integrated School students are used to buying products and snacks from the school

canteen and have built brand loyalty to the market.

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● Production Time- The product is usually cooked and prepared for 5 minutes, and recess

time is only 15 minutes.

● Place- The work immersion venue is very hidden as it is located on the second floor of

EPAS building.

Opportunities:

● Different toppings and size -Bread pizza can introduce new pizzas with different shapes

and flavors. This could bring in more clients with different tastes and increase sales.

● Opportunity to leverage usage of its existing biodegradable packaging- Since the

packaging is eco-friendly, it reduces the amount of wasted materials and consumption of

resources. Both efforts help to minimize the carbon footprint of humans while meeting

the high standards of environmental compliance.

Threats:

● Health concerns- Despite the use of healthy ingredients, some people may still view

pizza as an unhealthy food choice. SNAQU1TY will need to educate consumers on the

nutritional benefits of their product and how it can be part of a balanced diet.

● Target Market- The target market is primarily students, who may have limited

allowances and be more price-sensitive. However, this group may also have low brand

loyalty and switch to a different pizza option if they find a better deal elsewhere

● Other competitors – Work immersion of ABM students consists of 6 groups and this

might be a hindrance in earning sales for the business.

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Chapter III
MARKETING PLAN

Competition and Industry Information

Competition within an industry is grounded in its underlying economic

structure. It goes beyond the behavior of current competitors. The state of

competition in an industry depends upon five basic competitive forces. The

collective strength of these forces determines profit potential in the industry. Profit

potential is measured in terms of long-term return on invested capital. Different

industries have different profit potential—just as the collective strength of the five

forces differs between industries.

Five Forces Analysis

1. Industry rivalry

The intensity of rivalry among competitors measures the ability of

competitors within an industry in putting struggles on one another. In

SNAQU1TY’s marketplace within the school, there would be six groups that

would compete from the three sections of grade 12, and they would have

different kinds of products. In addition, the school canteen can be considered

as another competitor of SNAQU1TY, and there is a chance that these

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competitors would offer similar kinds of products, like snacks and drinks.

This could increase the competitive struggle between businesses within this

industry. To gain more profit, SNAQU1TY has to compete for market shares

within the population of approximately 2800 students in Palo Alto Integrated

School. To sum up, the intensity of rivalry in the marketplace is high, which

is a disadvantage and can lead to reduced profit potential of SNAQU1TY.

2. Threat of substitutes

Products that can be substituted for one another in usage (or

consumption) due to altered circumstances are known as "substitute goods"

(Nicholson, 1998). Similar to SNAQU1TY'S pizza, it has a product on Palo

Alto Integrated School that we regarded as a rival or replacement. The bread

roll comes from the canteen. Canteen's bread roll might be a threat to

SNAQU1TY'S pizza because it might make it more difficult for the owner to

raise prices.

As people's lifestyles change, they tend to become more health

conscious, which means they start to choose healthier options for their foods.

Policymakers often attempt to promote healthy eating behaviors by raising

consumers' health consciousness (Mai & Hoffman 2015). In contrast,

SNAQU1TY's product has healthy ingredients such as pineapple and

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moringa that can help customers minimize their worry about a pizza being

unhealthy. In addition, SNAQU1TY is obeying the DepEd order about

health and food regulation inside the school. The only product that poses a

threat of substitution for SNAQU1TY's is the canteen's bread roll. This

substitute product can limit SNAQU1TY's pricing and pose a threat to its

profitability, which can cause a tug of war with its customers.

3. Bargaining power of buyers

The main buyers of SNAQU1TY are students of Palo Alto Integrated

School and these buyers have the power to influence their profitability. In

the marketplace (school), there are numerous buyers, which are students, and

there are few sellers which includes SNAQU1TY and other businesses of

Grade 12. If they are not satisfied with SNAQU1TY they can immediately

switch to another product offered by other competitors. In other words, the

buyers may only have a few products to choose from, but they can choose to

buy products outside of the school. According to SNAQU1TY’s survey, the

students only have a low food allowance of around ₱20- ₱30.This would

result in a pressure for them to purchase products at low prices, making the

buyers more price sensitive. The quality of the products and its affordability

are important to the buyers, and these buyers will make frequent purchases

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to those products. These buyers have the power to decide the profitability of

SNAQU1TY. SNAQU1TY’s products are homemade and can be produced

easily by the consumers therefore, it can be concluded from these factors

that the bargaining power of buyers is high. SNAQU1TY can focus on

innovation and differentiation to attract more buyers. Product differentiation

and quality of products are important to buyers within the school, and they

can attract a large number of customers by focusing on these. SNAQU1TY

needs to build a large customer base, as the bargaining power of buyers is

strong. They can do this through marketing efforts aimed at building brand

loyalty. This way they will be able to attract a large number of buyers.

4. Bargaining power of suppliers

Suppliers have the power to influence price, as well as affect the

availability of the resources/ingredients. SNAQU1TY’s main product M

Pizzas are composed of sliced loaf bread, and different toppings such as

pizza sauce, hotdogs, ham, cheese, and moringa leaves. Suppliers are going

to be the sellers of those ingredients. Even though SNAQU1TY will enter as

a new business, they would already have a lot of suppliers because the

ingredients needed for the recipe are commonly seen in the neighborhood

and there are a lot of vendors and groceries in Palo Alto. The suppliers may

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increase their selling price but since SNAQU1TY has a large variety of

suppliers to choose from, they cannot fully affect the business market of

SNAQU1TY. They can simply switch to a more affordable supplier. In

summary, it can be analyzed that the bargaining power of suppliers in

SNAQU1TY is low because they have a lot of suppliers to choose from.

5. Barriers to entry

The barriers to entry are factors or conditions in the competitive

environment of an industry that make it difficult for new businesses to begin

operating in the business. For establishing a business inside the school, the

barriers to entry are high due to the customer loyalty of students to the

canteen. The students will initially purchase from the canteen because they

are not yet accustomed to the products that other food businesses will offer.

But the canteen's true selling point is that they are aware of the students'

actual demands and are skilled at creating a business strategy. There is a

possibility that customers will decide to patronize the school canteen instead

of its other competitors. Additionally, the capital requirement for

establishing a business in the school is indeed low compared to other

businesses but there are strict rules and regulations that a new entrant would

have to follow especially when it comes to food business. Every business

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within the school must comply with the issued guidelines on food safety and

get authorized by a written agreement with the school head. These strict

policies will pose as an obstacle for new competitors. The threat of new

entrants can be determined through these barriers to entry and upon

analyzing the aforementioned barriers, it can be concluded that there is a low

threat of new entrants. The unlikeliness of a new entrant would be an

advantage to SNAQU1TY and increase its profitability.

Customer Profile

Primary Market

SNAQU1TY is primarily targeted to serve the students of Palo Alto

Integrated School. It is mainly composed of 2,818 students ranging from 12-19

years old. Most of the students are looking for a quick snack. SNAQU1TY’s

products can be a quick and easy snack for students since it is convenient for

snacking and packed with loads of nutritions suited for the students.

Secondary Market

The secondary target customers of SNAQU1TY are teachers of Palo Alto

Integrated School. Besides the students, other people in the school can purchase

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their needs from SNAQU1TY. Teachers work inside the school and may purchase

snacks to give to their co-teacher, students or relatives that could become our

potential consumers.

Market Segmentation

Demographic

SNAQU1TY needs to build a large customer base, and will therefore

concentrate its business and marketing to the students of Palo Alto Integrated

School. They are SNAQU1TY’s primary customers and these students are from

Grade 7 to Grade 12. Junior high school and senior high school students' ages

usually range from 12-18 years old (Angloinfo, 2023). According to Beresford

Research (2023), this age group belongs to Generation Z. SNAQU1TY focuses to

serve these students, both male and female, from any religion, language,

nationality and race. In SNAQU1TY, everyone is welcome. Some students are

incapable of producing income and depend on their daily allowance from their

guardians/parents. According to the survey conducted by SNAQU1TY, most of the

students in PAIS receive a daily allowance of ₱50-100. They budget their daily

allowance and spend around ₱20- ₱30 for food.

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Psychographic

SNAQU1TY's primary customers are the students of Palo Alto Integrated

School from junior to senior high school. Every grade level has different class

schedules and recess time that they follow as their everyday routine. Some of these

grade levels have morning and afternoon class sessions; Grade 7 students who

attend the morning session go to school from 6:10 AM-11:20 AM, while their

afternoon session goes to school from 11:30AM -4:30 PM; Grade 8 students who

attend the morning session go to school from 6:10 AM-11:30 AM, while their

afternoon session goes to school from 11:30AM-4:50 PM; Grade 9 students who

attend the morning session go to school from 6:10 AM-11:20 AM while their

afternoon session goes to school from 11:40 AM-4:50 PM; Grade 10 students who

attend the morning session go to school from 6:45 AM-11:30 AM while their

afternoon session goes to school from 12:00 PM-4:50 PM. In Grade 1, students

attend school from 7:00 AM to 3:00 PM, while in Grade 12, students attend school

from 7:50 AM to 1:00 PM. Since in these grade levels, there are students who

attends school after lunch, it is more likely for them to buy snacks in SNAQU1TY

that offers high-quality and affordable snacks that are not available in school

canteen.

Teenagers today represent the most diverse generation in terms of race and

culture. Their preference in food and drink also reflects their desire for diversity.

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Taste and functionality are the top priority of teens when it comes to snacks, they

prefer snacks that are flavourful and can fill them up (Wiley, C., 2019). On the

other hand, students are generally highly tech-savvy and are likely to be heavy

users of social media, online communication tools, and other digital platforms. It is

stated in the study of Radermacher and Luckman (2019) that social media has

become a central part of the lives of high school students, shaping their

relationships, identities, and communication patterns.The study provides evidence

that high school students are heavy users of social media, with Facebook,

Instagram, Snapchat, and Twitter being the most popular platforms.

Behavioral

Students usually obtain their allowance from their parents and it is evident

from recent studies that most of the monthly allowance of students is spent on

food, academic fees or transportation fees (Abawag et al., 2019). Budgeting made

the students look for more affordable products to maximize their daily allowance.

SNAQU1TY focuses on serving the students of Palo Alto Integrated School

(PAIS) and according to the survey conducted by SNAQU1TY, most of the

students in PAIS have a daily allowance of ₱50-100. With this amount, the

students tend to allocate around ₱20- ₱30 for their food allowance.

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Geographic

Palo Alto Integrated School students, who are primarily teens between the

ages of 12-18 years old, are the company's primary target market. These students

mostly reside in Barangay Palo Alto and its vicinity. Palo Alto is a barangay in

Calamba, Laguna in the Philippines, which has a land area of 273.3 hectares. It is

situated south of Mayapa, west of Barandal, south-east of Majada Out and

northeast of Laguerta (PhilAtlas, 2020). SNAQU1TY is a business that offers

delicious and healthy snacks for these students hence, it will be marketed in Palo

Alto Integrated School, in the new senior high school building above Grade 12

EPAS room near Grade 9 building.

Market Size

Total Market Volume

To find the overall market potential (that is, the potential market volume), multiply the

number of target customers by the volume of consumption per year.

Total Market Size Volume


= Total No. of Target Customers X Volume of Consumption Per Year

Using the data gathered from Palo Alto Integrated School where the number of target

customers is 2,818 and the volume of consumption per year is assumed to be pieces, which was

gathered through interviewing, the potential market volume would be calculated as follows:

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Total No. of Customers Volume of Consumption Total Market Volume
Per Year

2,818

Total Market Value

To find the overall market potential (that is, the potential market value), multiply the

market volume by the average product value (that is, price expectations).

Total Market Value


= Market Volume X Average Value

Based from (basis for the computation of average value or price), where each unit has an

estimated value of ₱15 and a market volume of pieces, the potential market value would be

calculated as follows:

Total Market Value Market Volume Average Value

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Market Share

Due to the competition, the business will only be able to realistically obtain a percentage

of the served available market (SAM), and this market share is referred to as the serviceable

obtainable market or SOM.

If the served available market (SAM) also called as Total Market Value is ₱ and the

company expect to be able to obtain% of this market, then the serviceable obtainable market

(SOM) is calculated as follows.

Total Market Share


= Total Market Value X Market share %

Total Market Share Market Value Market Share

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Marketing Strategy

The obtainable market share forms the basis of the revenue projection in the business

plan financial projection, and it is therefore important that the estimate of the market share is

supported and justified by the marketing plan.

Marketing Mix

Product:

SNAQU1TY’s main product “M Pizza” is a bread pizza that is oven-toasted and topped

with healthy ingredients. The product's manufacturing procedure is new, and the sauces' special

combination of potato and moringa (malunggay) sets them apart from traditional pizza, and

SNAQU1TY will employ bread rather than dough to make it the proper serving size for students,

which is soft and somewhat chewy on the inside with the ideal amount of crunch on its outside.

The effects of portion size are greater for palatable or liked foods (Birch et al. 2015).Moringa has

many important vitamins and minerals which is perfect for the growing and hard-working

students of Palo Alto Integrated School. The leaves have 7 times more vitamin C than oranges

and 15 times more potassium than bananas. It also has calcium, protein, iron, and amino acids,

which help your body heal and build muscle. SNAQU1TY chooses to use school-themed

packaging with the logo of their business attached since they are selling within the school. The

packaging of M Pizza is made with paper and shaped to it, made to be easily grasped by the

consumers. Saeed, Lodhi, Mukhtar, Hussain, Mahmood, and Ahmad (2013) integrate the brand

image, brand attachment, and environmental effects and their impact on consumer purchase

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decisions. SNAQU1TY products ensure quality for the satisfaction of their target market while

considering their health. Research confirms the importance of product and service quality and

shows that it increases customer satisfaction and loyalty (Bastos & Gallega, 2008; Chai et al.,

2009), which is why SNAQU1TY will focus on these factors.

Promotion:

SNAQU1TY chooses to use advertising strategies to promote its products. Advertising is

a powerful tool that can help the business attract customers, inform them about its products, and

build customer trust. SNAQU1TY will be using marketing instruments such as flyers and

commercials. Flyers are easy to read and save time for people. Since flyers are small and contain

only a few lines, it is easy to grasp their content and design. Furthermore, they will create a fun

and entertaining commercial appropriate to the target market in order to attract the attention of

students. Additionally, they will use social media to promote the business effectively.

SNAQU1TY chose this promotion because social media is prominent to the students nowadays.

Social media allows marketers to connect and engage potential customers where they are: on

LinkedIn, Twitter, Youtube, Facebook, Instagram, and even some of the younger platforms like

TikTok. With a strong social media strategy and the ability to create engaging content, marketers

can engage their audience (Ku, 2022). With the large number of social media users globally, it's

beyond a doubt that social media marketing is an effective channel to reach target audiences

online. SNAQU1TY will also make use of referral marketing. In referral marketing, a company

can encourage current customers to recommend its product to their friends and family by

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offering discounts, freebies, or other rewards. In this way, SNAQU1TY can make the students

aware of the quality of the product that they are selling.

Place:

SNAQU1TY uses a physical distribution channel; they are the ones who will cook, pack,

and associate with the customer. Being a small business however will enable them to form closer

relationships and networks with customers, providing flexibility in operations and

responsiveness to change (Moriarty et al., 2008; Arnett and Badrinarayanan, 2005). Consumers

can locate SNAQU1TY within the school's vicinity, in the new building at Palo Alto Integrated

School, near the science lab and the Grade 9 building above the Grade 12 EPAS room. Students

are not allowed to go out and purchase products outside the school unless the class has ended.

SNAQU1TY being stationed in the school is beneficial for both them and their consumers.

Besides their physical store, SNAQU1TY can be contacted through social media platforms. It

will be more convenient for students since it is very accessible and not time consuming.

Price:

SNAQU1TY will follow a cost-based pricing strategy wherein they will charge their

products based on the cost of the ingredients which the business purchases from the suppliers.

SNAQU1TY will still consider their target market to be willing to pay that is why they

conducted a survey and their business has concluded that the price of their product will range

from P20 to P30, this signifies that SNAQU1TY must fit their price ranges in accordance with

the survey results. The two primary categories of cost-based pricing strategies are break-even

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pricing and cost-plus pricing. Cost-plus pricing is the strategy that SNAQU1TY will make use

of. The total selling price for the cost-plus pricing strategy, also referred to as a markup pricing

strategy, is determined by adding the unit cost and a specified profit percentage. The profit %

shows how much the business anticipates making in profits after subtracting the overall cost of

the product (including labor, manufacturing, and overhead costs). The goal of

SNAQU1TY’s pricing strategy is for money growth of the business while providing best quality

products for the consumers within the ten-day work immersion.

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Chapter IV

MANAGEMENT and OPERATIONAL PLAN

Organizational Chart

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List of Key Personnel

● General Manager 1

- is responsible for overseeing all aspects of the business along with General

Manager 2. He/she is in charge of ensuring the harmony of the management, and

day-to-day operations of the organization, ensuring that all business processes are

running smoothly and efficiently. General Manager 1 is also in charge of training

and supervising employees to ensure that they are providing excellent customer

service and adhering to all food safety protocols.

● General Manager 2

- is also responsible for overseeing all aspects of the business along with General

Manager 1. He/she is responsible for managing the organization's financial

resources, creating budgets, allocating resources and monitoring financial

performance to ensure that the business is on track to meet its financial goals.

● Sales and Marketing Head 1 (Head Cashier)

- bears the responsibility of overseeing the sales transactions of the business

alongside his/her assistant. He/she is also the head cashier that serves as the first

point of contact for customers and provides customer service by greeting

customers, answering inquiries, and handling complaints in a professional

manner. He/she also must ensure that all cash and sales are balanced at the end of

each shift, and verify the accuracy of transactions processed.

- The Assistant Cashier works alongside with the Sales and Marketing Head 1

(Head Cashier) and is responsible for receiving the payments of the customers.

They will check if the customers provided the right amount of payment for the

26
product they purchase. They are also the ones in charge to determine how much

change the customer will receive for the amount that they give. It's also their job

to list down the purchases of the customers to make sure that the money they're

receiving is right and complete.

● Sales and Marketing Head 2

- serves as the advertising manager of the organization and works along with

his/her assistant. He/she manages advertising campaigns, promotions, and other

marketing initiatives to drive customer engagement and sales. This includes

attracting customers, distributing advertisement materials, and spreading positive

word-of-mouth within the marketplace.

● Head Waiter

- manages all the waiters and waitresses of the organization and plays a crucial role

in creating a positive dining experience for customers.Waiters/waitresses are the

ones who are in charge of communicating with customers. These include greeting

the customers, taking the customer's order, and communicating it effectively to

the kitchen. In addition, they also need to memorize the menu and offer

recommendations to upsell the business's products. They are also responsible for

asking customers if they are satisfied with their meal and providing assistance if

the customer has any complaints about their product.

● Production Manager 1

- acts as the head cook and is directly involved in producing and preparing the

products. He/she oversees the production process of the kitchen and is responsible

for ensuring that food is prepared efficiently and to high standards.The

27
supervision of the kitchen and the cooking staff is under his/her responsibility.

The cook/s work under her supervision together as production helpers.

- The entire process of creating the products will be carried out by the cooks. They

are in charge of preparing high-quality food in utmost care to be served to the

customers. They are also in charge of packing the goods and maintaining the

cleanliness of the tools and equipment.

● Production Manager 2

- manages all the cleaning staff of the organization. The cleaning staff work under

him/her. Cleaning staff are the ones who are responsible for all basic cleaning in

and around the workplace. It includes cleaning all the equipment that are used in

cooking, maintaining the cleanliness of the workplace, monitoring materials

stored in their area, responding to visitors' inquiries about where they can get

certain things done, and making everything organized. They also need to make

sure that the supply room has enough stock for food preparation and cooperate

with the rest of the staff.

Plans for Future Staff

The managers will be in charge of overseeing all tasks during the first few days of immersion

while the business aims to satisfy their target customers and earn a stable amount of revenue. Once the

business is established and demand for products increases, the business will start recruiting experienced

key employees who will bring their experience along and support the growth of the business.

28
In the long term, each staff and employees will wear their name tags for their identity, to offer

customer service and to have a better communication with the customers. The business will also upgrade

the staff uniforms as they are necessary for employees to perform their job functions and maintain a

professional appearance. From Monday through Friday, the business employees will wear a color-coded

uniform: orange on Monday, blue on Tuesday, yellow on Wednesday, pink on Thursday, and green on

Friday, the employees are going to maintain wearing the assigned color on each day. The color selection

for color-coded uniforms for the employees and staff are all based on colors and emotions by Allison

Gremillion, which all signifies happiness and joy just like what the customers should feel after consuming

the products. As the business reaches higher demands, the company will expand its coverage by having

branches in different places, and will upgrade to a larger area.

Operational Plan

Space Requirement

Floor Plan

Equipment Requirement

The following are the tools and equipment that will be needed in the initial 10 days of operation
of the company.

29
TOOLS AND SPECIFICATIONS DESCRIPTION
EQUIPMENT

Knife Medium Cook's Knife Used to cut ingredients such as hotdogs and
Stainless steel ham

Pan Non stick pan 16cm Marble Stone A tool used to boil hotdog and ham
Coating and Silicone Handle

Tongs 7’’ stainless steel A tool used for gripping and lifting hotdogs
and ham while cooking

Plate (Paper Plate) 5’’ square plate A tool used to contain and maintain the heat
or the temperature of the food

Chopping board 50cmx30cm Used as a base for cutting hotdogs and ham
(Plastic)

Grater Stainless steel A tool used to grate the cheese

Oven Toaster Infrared Dual Heater, 1500 Watts Used to cook the pizza
power

Tupperware 23cm length, 7.5cm height, 14.5cm Used to store and contain the chopped
width toppings

Glass Transparent drinking glass Substitute for rolling pin


Tool used to thin out the bread

Pastry brush Silicone basting brush Used to spread egg wash on the surface of
the food

Working Capital Requirement

The business requires an initial working capital of around 5,000 pesos to cover operational expenses,

including inventory purchases, rent, and other necessary costs. This capital will cover the initial three days of the

operation. To ensure equal contribution from all participants, the initial capital of 5,000 pesos required for the

business will be divided equally among them. This will provide the business with the necessary funds to launch

successfully and sustain its operations in the short term. The members will keep track of the finances and allocate

the funds wisely to maximize profitability and minimize risk.

30
Chapter V

FINANCIAL PLAN

Use of Proceeds/Capital

Ingredients Cost P5,250.00

Utilities P500.00

Packaging P311.00

TOTAL P6061.00

31
Manufacturing Aspects

Production Standard Operating Procedure

GATHERING OF INGREDIENTS:

SNAQU1TY prioritizes quality from the ingredient to the finished product. Their product

ingredients are from the stores/groceries nearby the market place, where the business can

purchase affordable and quality items directly from the huge sellers rather than from a small

neighborhood retail shop like Sari-Sari store. The business will purchase their main ingredients.

Importing goods outside the marketplace is also one of the options of SNAQU1TY , where they

will purchase the product of others and add a mark-up to its price and then will resell them to the

market.

PREPARING INGREDIENTS:

After all the necessary supplies have been assembled, the cook will begin preparing the

ingredients for the products they will sell. The cook will now begin preparing the ingredients for

SNAQU1TY'S main product which is M Pizza.

ORDER TRANSACTION:

The waiter or waitress has the responsibility of welcoming and greeting the customers,

taking their orders, and then communicating them effectively to the kitchen. The payment on

their order will be gathered by the cashier, who will list it in payment transactions or on their

32
order slip. After communicating the customer's order(s) to the kitchen, the cook(s) will then start

to prepare and cook the orders.

MAKING THE PRODUCTS (PRODUCT PROCEDURE):

Ingredients

● sliced bread
● pizza sauce
● cheese
● pineapple (optional)
● hotdog/ham
● moringa leaves
● egg

Step 1: Precook the hotdog and ham and cut them into preferred size

Step 2: Flatten the bread to have a nice dough for pizza

Step 3: Mix 1 tbsp. of dried moringa leaves for every 500ml of pizza sauce.

Step 4: Put 1 tsp. of sauce, 5 slices of ham or 3 slices of hotdog, cheese, and 3 slices of

pineapple onto the flattened bread.

Step 5: Put the opposite corners together and make them stick with the help of egg.

Step 6: Put it in the oven toaster for about 4 mins.

Step 7: Put it into a packaging paper and it's ready to serve!

SERVE IT TO THE CUSTOMERS WITH A SMILE

After preparing and packaging the ordered products, the waiters will give the ordered

products to their rightful customer, deliver the finished product to the customer with a smile, and

provide assistance if the customer has remarks.

33
34
List of Supplies Needed and Possible Supplier/Source

The business carefully selects suppliers based on factors such as quality, availability, and

cost-effectiveness. SNAQU1TY prioritizes suppliers who offer good quality supplies and are

located nearby their school to minimize transportation costs. Cost is also a crucial consideration

as they aim to keep their operating costs low. Choosing a great supplier who offers affordable

prices and is located nearby the school provides an advantage for the business, making purchases

quick and easy.

SUPPLIES SOURCE

Hotdogs Shoppers

Ham Amor

Pineapple Shoppers

Cheese Amor

Pizza Sauce Amor

Bread PureMart

35
3-Year Projected Market Share Profit

1st Year 2nd Year 3rd Year

100% 100% 100%

At the initial year of the business operation, the available and serviceable market size

allows the business to cater to 100% of it as there are no possible competitors in the market.

SNAQU1TY is set to produce 80 pieces of each of their products a day and is operating on

school days (203 days). Once the business becomes stable and profitable, the business plans to

increase their production from 80 pieces to 100 pieces per day in the following year in order to

meet the demand of the customers. SNAQU1TY assumes greater brand recognition and trust

from the consumers which is why they will increase their production again in the third year of

the operation from 100 pieces to 150 pieces per day.This increase encourages the business to

commence the recruitment of employees for greater quality and efficiency. The business plans to

move to a bigger market once the initial three years of the business is deemed successful.

36
3-Year Projected Income Statement

Year 1

SNAQU1TY
Income Statement
For the year ended December 31, 2023
In Philippine Peso

Net Sales 487,200.00


Cost of Goods Sold
Beginning Inventory 0.00
Purchases 406,000.00
Less: Ending Inventory (1,250.00)

Gross Profit 82,450.00

Administrative Expenses
Business Permit 600.00
Advertising Expense 1,000.00
Total Administrative Expenses 1,600.00
Operating Expenses
Electricity and Rent (Utilities) 10,000.00
Miscellaneous 500.00
Total Operating Expenses 10,500.00
Total Expenses 12,100.00
Net Income 70,350.00

The figures presented are based on the assumption that the business will produce 80 pieces of each of the
products each day during the period. Of these, ingredients that can produce 50 pieces on each product will be left
unsold at the end of the year and were therefore recorded as ending inventory. These figures are subject to change
based on the actual production and sales figures of the company.

37
Year 2

SNAQU1TY
Income Statement
For the year ended December 31, 2024
In Philippine Peso

Net Sales 609,000.00


Cost of Goods Sold
Beginning Inventory 1,250.00
Purchases 507,500.00
Less: Ending Inventory (1,250.00)

Gross Profit 102,500.00

Administrative Expenses
Business Permit 600.00
Advertising Expense 1,000.00
Total Administrative Expenses 1,600.00
Operating Expenses
Electricity and Rent (Utilities) 10,000.00
Miscellaneous 500.00
Total Operating Expenses 10,500.00
Total Expenses 12,100.00
Net Income 90,400.00

The inventory figures presented reflect an increase in production compared to the previous period. During
this period, the company will increase the production into 100 pieces of each of its two products every day, compared
to 80 pieces in the previous period. Ingredients that can produce 50 pieces on each product will be left unsold at the
end of the year and were therefore recorded as ending inventory. These figures are subject to change based on the
actual production and sales figures of the company.

38
Year 3

SNAQU1TY
Income Statement
For the year ended December 31, 2025
In Philippine Peso

Net Sales 913,500.00


Cost of Goods Sold
Beginning Inventory 1,250.00
Purchases 761,250.00
Less: Ending Inventory (1,250.00)

Gross Profit 152,000.00

Administrative Expenses
Business Permit 600.00
Advertising Expense 5,000.00
Total Administrative Expenses 5,600.00
Operating Expenses
Electricity and Rent (Utilities) 10,000.00
Salaries Expense 30,000.00
Uniform Expense 8,000.00
Miscellaneous 500.00
Total Operating Expenses 48,500.00
Total Expenses 54,100.00
Net Income 97,900.00

At this point, the business intends to commence the recruitment of employees and provide them with uniforms.
Consequently, there will be additional entries for salaries expense and uniform expense. The business will also start
to focus on advertising to help the business grow. There would also be an increase in production from 100 pieces into
150 pieces of each of the products per day. Ingredients that can produce 50 pieces on each product will be left unsold
at the end of the year and were therefore recorded as ending inventory. These figures are subject to change based on
the actual production and sales figures of the company.

39
Break Even Analysis

A break-even analysis is a critical part of the financial projections in the

business plan for a new business. Financing sources would want to see when the

business expect to break even so they know when your business will become

profitable.

But even if the business is not seeking outside financing, knowing when the

business is going to break even is important to help plan the amount of startup capital

needed and determine how long that capital will need to last.

SNAQU1TY’s breakeven analysis in volume and value is shown below.

Breakeven Point (BEP) – Volume

Breakeven point in volume = Total fixed costs


Unitary margin on variable costs

= 12,100
15-12

= 4,033.33

This breakeven point- volume calculation shows that the business needs to sell
4,033.33 units of the product in order to break even and cover all its total fixed costs.

Breakeven Point (BEP) – Value (M Pizza)

Breakeven point in Value = Breakeven point in volume X Sale price

= 4,033.33 X ₱15

40
= ₱60,499.95

This breakeven point- value calculation shows that the business needs to sell
₱60,499.95 worth of product in order to break even and cover all its total fixed costs.

41
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Appendices

47

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