HERSHE’S CACAO FARM

“ S W E E T E R T H A N W H AT Y O U T H I N K ”
EXECUTIVE
SUMMARY

• Business
Description
• Goals and
Objectives
• Mission Statement
• Capital Request
 Business Description
Since Philippines is located near the equator and it is perfect growing condition for cacao
farming. Hershe Mae Florentino decided to make a business which is Cacao Farming named
Hershe's Cacao Farm. The Cacao Farm has different varieties of cacao, these are the Criollo,
Forastero and Trinatorio. The farm has 4 hectares Every cacao tree has shade plant of coconut
tree. Hershe's Cacao Farm produce High Quality, Pure and Nutritious cacao products such as
Cacao Powder, Chocolate, Cocoa Butter and other related products. Our target market is the
Commercial Bakery, Confectionery, Chocolate Maker, Coffee Shop and Sweet Production.
Hershe's Cacao Farm started at 2020 Founded by Hershe Mae Florentino. The Farm is located at
New Quezon Hagonoy, Davao Del Sur.
 Mission Statement
• To give customer the very best product and provide excellent customer service so that we
may earn their trust and ensure continued business transaction.
• To provide an Excellent, top-notch and a safe environment for Cacao Production and
processing, storage and distribution.
 Goal and Objectives
Our goal is to become one of the leading brands in the Cacao Industry
in the Philippines and also be on the top Cacao Manufacturers in the
whole world within 6 years of operation.
• -To offer high-quality service and a wonderful experience at
reasonable price.
• -To create product whose primary goal is to exceed customer’s
expectations.
• -To achieve net-profit of 3million a year
• -To boost image and awareness by establishing baseline
customer satisfaction of 100%.
 Capital Request
Hershe's Cacao Farm has required Ph271,000 for Cacao Farming,
Ph497,000 for Cacao nursery Establishment and Ph1,480,000 for
Tablea Processing a total of Ph 2.3million. The 50% of capital will get a
loan from the bank and the other 50% will be provide by Hershe Mae
Florentino from her own savings.
BUSINESS DESCRIPTION SECTION

• Business Overview
• Location of Business
• Facilities
• Ownership
 Business Overview
 Hershe's Cacao Farm produce Cacao Beans, Cacao Butter, Cacao Powder and other related
products which is the important ingredients needed for Commercial Bakery, Confectionery,
Chocolate Maker and sweet Production. Hershe's Cacao Farm Products are a great potential for
exports, Hershe's Cacao Farm was Started 2020 Founded by Hershe Mae Florentino, the Farm
has a total of 4 Hectares, 2 Hectares for Cacao Trees and 2 Hectares for the Facilities
Fermentation and Storage Rooms. The Business has a vision of "To become one of the leading
brands name for accessing varieties of goods and products through its excellence product
offering and efficient distribution network. Hershe's Cacao Farm was making great quality not
only to compete but also to provide and supply the best quality cacao to every Consumer
Market, Confectionery, Baking Industries and sweet production.

 Location
You can locate Hershe's Cacao Farm in New Quezon Hagonoy Davao Del Sur. Officialy the
municipality of Hagonoy is a 3rd class municipality in the province of matanao. The eastern
baranggay are mostly cultivated into plantation crops such as Cacao,Coconut and etc. Business
Correspondence should be addressed to the following:
• Hershe's Cacao Farm New Quezon Hagonoy, Davao Del Sur
• Email: hershescacaofarm@gmail.com
 Facilities
• Cleaning/washing cacao bean area- we purchase all of our cacao bean wet.
• 3tier Fermentation boxes- within 24 hours of being harvested. The beans are
brought straight to our depot and placed in our traditional 3-tier fermentation boxes,
with the capacity to handle 9.6 tones at a time, the bean stays here for 6-7 days cacao
quality team perform quality cut test on random batches daily to ensure even and full
fermentation.
• Passive Solar Drying Beds- Once fermentation quality is satisfied, the beans are
transferred to our passive solar drying beds, here they are raked and turned for another
6-7 days exposed to direct and indirect sunlight, until they reach an exact moisture
content of 7%.
• Handwriting tables- at this stage they will be taken on the Handwriting tables where
all the imperfect beans and debris is removed.
• Semi-Finished Product storage room- Class/ beans are bagged and stored for
export. the class 2 and class 3 beans will be used to make cacao butter and cacao
powder.

 Owner Stucture
Hershe's Cacao Farm is owned and operated by Hershe Mae Florentino. The business is
structured as a Sole Proprietorship (SP), Hershe Mae Florentino will owned 100% in the
business.

In this business, the legal entity of domestic corporation is distinct from Hershe Mae
OPERATION SECTION

• Products and Services

• Licenses, Permit and
Regulation
• Timeline
 Product and Services
Hershe's Cacao Farm will sell healthy, disease-free and highly nutritious cocoa beans. Other
products services include cocoa powder, cocoa tea, cocoa butter, etc. we produce, process and
package to meet standard organization of Philippines and international standard. We are
concerned about providing products that suit the many use of cacao beans either for edible or
industrial uses.

 License, Permit and Regulation

• Business Permit- The filings for the Sole Proprietorship (SP) with Department of trade
and Industry (DTI) and Department of Health (DOH)
• Food Service Permit- As a farm owner, Hershe's Cacao Farm need a food service
permit as well as Department of Health (DOH) and Department of Trade and Industry
(DTI)
• Other Regulation- Hershe's Cacao Farm not offer a Tourist Visit but open for an
interview, if this is something that we decide to offer in the future we will need to have a
license for this "Tourists visit" aspect.
ACTIVITY 2020 2021 2022 2023 2024 2025

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MARKETING PLAN

• Market Trend
• Customer
• Pricing
• Promotion
• Distribution
• Target Market
• Competitive Advantage
 Market Trends
Chocolate is considered a snack food in developed countries, chocolate in the Philippines is
mostly eaten during special occasion or given as gifts. Among the major chocolate
manufacturers located in the country are Universal Robina Corporation, Commonwealth Foods,
Inc., Goya, Inc., and Columbia International Food Products Inc. The growing number of
restaurants and coffee shops serving cocoa-based drinks and food items, and the growing
industry of medium and small-scale chocolatiers requiring high quality cocoa beans
contributed to the attractive price of cacao in the domestic market. For bean exporters, more
opportunities are open due to the widening of supply and demand gap in the world market. A
10% market share in the world supply can already provide a profitable income to the country
and its producers.

 Customers
The primary consumers of Hershe’s Cacao Farm is those who love chocolate, factories of
chocolate, confectionery, Bakery Industries, sweet production and coffee shop. Hershe’s
Cacao Farm target market is all lovers of delicious high-end chocolate in the Hershe’s Cacao
Farm whether it is Fair Trade or organic. Philippines demographic study shows that 33.07% of
population are individuals of the ages between 0 to 14 years, 62.32% are individuals of the
ages 15 to 64 years and 4.61% are individuals with 65 years and above.

 
 Pricing
Hershe’s Cacao farm will initially use a penetration pricing strategy and thereafter a premium
pricing strategy. With the penetration pricing Strategy, the price of Hershe’s Cacao farm high-end
chocolate will be relatively lower to that of its competitors. A strength of the penetration pricing
strategy is that it has the potential to increase a customer’s lifetime value. This is because
customers tend to have a bond with the initial product offering so much that if there is
maintenance of high quality there is incremental willingness in them to buy additional products
from the company. Normally, the local price of the country’s cocoa beans is correlated with the
international commodities pricing. However, when there is an increased volume in local cacao
processing on a certain period and supply of raw materials is nil, it pushes the local price up
considering that ‘Tablea’ does not at all times conform to world market prices.
 Promotion
Hershe’s Cacao Farm will use various promotional strategies. Sampling (or promotional products) is
one of the promotional strategies that Hershe’s Cacao Farm will use to promote its high-end
chocolate product. With this promotional strategy Hershe’s Cacao Farm will organize a promotional
event where potential customers will sample or try its product for free. The main advantage of this
strategy is that the customers will try the product without any risk. Discounting is another
promotional strategy that Hershe’s Cacao Farm will use to generate customer demand for its
product. Hershe’s Cacao Farm will offer a quantity discount to its customers. An advantage of
discounting is that it encourages potential and price sensitive customers to try out a product. A
disadvantage of discounting is that it is difficult to set an accurate limit to its usage. Hershe’s
Cacao Farm will also undertake specialty advertising whereby it will reward its loyal customers with
different items such as T-shirts, thumblers, key chains and pens with the company’s logo and
trademark on it. This will enable Hershe’s Cacao Farm to preserve its loyal customers and at the
 Distribution
Hershe’s Cacao Farm will use both direct and indirect channels to distribute its high-end chocolate
product. The direct channel that Hershe’s Cacao Farm will use is its own retail outlet and sales via
the internet. Hershe’s Cacao Farm customers will be able to make purchases over the internet.
This will be made possible by the company’s website which will have a portal specifically designed
for carrying out online transactions. Hershe’s Cacao Farm customers will also be able to by its
product directly from the company. This will be made possible by the company’s own retail outlet,
which the company will also use to host some of its promotional events e.g. sampling and point-
of-purchase advertising. That is, it will meet its customer’s quantity demands by maintaining its
rate of production at a constant and manage fluctuations in these demands by varying its
inventory levels. The main advantage of the level strategy is that there is stability in worker level
and production. Its disadvantage is that it results in relatively high costs of labor and inventory.
 Target market
In the 15 to 64 years age group Hershe’s Cacao Farm marketing strategy will have a special focus
on high-end chocolate lovers with salary packages that accommodate disposable income. This is
because Hershe’s Cacao Farm projects that the purchasing power of these individuals will keep
raising as Philippine economy continue to stabilize. This projection is inferred from the industry
research undertaken by Hershe’s Cacao Farm and which is presented above.
In the 65 years and above age group, Hershe’s Cacao Farm marketing strategy will focus on
middle-and upper class high-end chocolate lovers. This is because individuals in this age bracket
most likely are able to afford high-end chocolate. Generally, Hershe’s Cacao farm target market is
any individual in the Philippine who loves high-end chocolate and is able to afford it.
 Competitive Advantage
The main way through which Hershe’s Cacao Farm will realize a competitive advantage
over its competitors is in the newness and uniqueness of its product. Hershe’s Cacao Farm
is to capitalize on this advantage while knowing that, first, high-end chocolate lovers want
to indulge in new and/or classic chocolate tastes and second, it is important and essential
to maintain high quality in its product as this is the only effective way of maintaining and
enhancing the product’s unique identity. Another way through which Hershe’s Cacao Farm
will realize a competitive advantage over its competitors is in the uniqueness of its retail
experience. Hershe’s Cacao Farm wants to offer a unique retail experience to its customers,
specifically, those who purchase its chocolate in its retail outlet(s). Hershe’s Cacao Farm
retail experience aims at making its chocolate a valuable and special item to the consumer
or any individual shopping for the perfect gift. The other way in which Hershe’s Cacao Farm
will realize a competitive advantage over its competitors is in its moral standing. One of
Hershe’s Cacao Farm moral values is respect for the environment, customer, employees,
and all those involved in the creation to selling of its chocolates. Inability to meet customer
demands causes customer dissatisfaction which in turn causes a decline in sales and
eventually undermining of a company’s financial performance. Hershe’s Cacao Farm will
have to ensure that it has a robust logistic strategy for it to realize this critical success
factor.