Butter Candy
Executive Summary
Butter Candy - unique and delicious butter candy
made from Rambutan seed & Pili nuts.
Mission & Vision
● Craft exceptional butter candies with local,
healthy innovation.
● Recognized confectionery brand focused on
quality and innovation.
Target Market
Health-conscious consumers, adventurous eaters, and
tourists.
Market Analysis
● Market Size and Growth Potential: The market
for candy in Polangui is significant, with a
preference for unique Filipino flavors.
● Competitors: Other candy businesses in
Polangui, producers of dried fruits, fruit jams,
nut-based snacks, and traditional Filipino sweets.
● Market Trends: Growing demand for healthier
snacks, natural ingredients, and unique food
experiences.
SWOT Analysis
Key Nutrients in Rambutan
Strengths: 1. Macronutrients
- Calories
- Unique flavor profile - Carbohydrates
- Protein
- Health benefits of rambutan - Fat
- Local sourcing - Dietary Fiber
2. Vitamins
- Tourism potential - Vitamin C
- Vitamin B3 (Niacin)
- Vitamin A
- Folate (Vitamin B9)
Weaknesses: 3. Minerals
- Seasonal availability of rambutan - Iron
- Potassium
- Limited market awareness of - Calcium
- Magnesium
rambutan - Phosphorus
- Manganese
- Short shelf life 4. Antioxidants
- Competition from established - Flavonoids
- Phenolic compounds
candies 5. Water Content
- Rambutan is about 82–86% water.
Opportunities:
- Growing demand for healthier snacks
- Expanding into new markets
- Innovation in flavors and packaging
- Collaboration with local businesses
Threats:
- Fluctuating rambutan prices
- Competition from similar products
- Consumer acceptance
- Regulatory challenges
Organizational Structure and Management
Management Team:
- Nemuel Buenaobra (Chief ExecutiveOfficer)
- Charmaine Saberola (Chief Marketing Manager)
- Jasmine Camonoga (Chief Operating Officer)
- Arian Joy Langa (Chief Financial Officer)
- Joy Sabaybay (Product Development Manager &
Purchasing Manager)
Products and Services
Butter Candy: Flagship product, unique flavor
profile, health benefits, and local sourcing.
Product Lifecycle: Development, market
introduction, growth, maturity, and phase-out.
Research and Development: Ongoing recipe
optimization, exploring new flavors, and
investigating potential applications of rambutan
seeds.
Intellectual Property: Trademarking "Butter
Candy" and protecting the unique recipe as a trade
secret.
Production and Delivery: Small-scale production,
exploring partnerships for scaling up, and focusing
on direct sales, retail partnerships, and online
platforms.
Future Product/Service Expansion: Rambutan
jam and rambutan seed snacks.
Marketing and Sales Strategy
Branding and Positioning: Positioning Butter Candy as a
unique, healthy, and delicious snack alternative.
Promotional Strategy: Targeted advertising, public
relations, social media marketing, and content
marketing.
Pricing Strategy: Competitive pricing, promotional
pricing, and value-based pricing.
Distribution Channels: Online sales, retail partnerships,
wholesale partnerships, and direct sales.
Customer Service and Retention Strategies: Excellent
customer service, loyalty programs, and customer feedback
collection.
Sales Process and Cycle: Prospecting, qualifying, presenting,
closing, and follow-up.
Sales Team Structure and Compensation: Initial sales team
consisting of founders, with potential for expansion.
Sales Targets and KPIs: Setting realistic sales targets and
tracking key performance indicators.
Strategic Partnerships and Alliances: Local farmers, food
retailers, and online platforms.
Operational Plan
Operational Workflow: Sourcing, pre-processing,
grinding, mixing, cooking, cooling, molding,
packaging, storage, and distribution.
Location and Facilities: Production facility, storage
facility, and potential retail outlet.
Technology and Equipment: Food grinder, mixing
equipment, cooking equipment, packaging
equipment, temperature control system, and
software.
Supply Chain Management: Procurement
process, supplier relationships, and inventory
management.
Quality Control: Raw material inspection,
production process monitoring, product
testing, and feedback collection.
Legal and Regulatory Compliance: Food safety
licenses, food labeling regulations, and health
and safety regulations.
Financial Plan
Initial Capital on Raw Materials
Production and Pricing Strategy
Production Cost per Batch:
Each batch costs PHP 816 and yields approximately 500 candies.
Cost per Candy:
Cost per candy = {816}{500} = {PHP 1.63}
Retail Price per Candy:
The proposed retail price for each candy is PHP 2.50, ensuring
a significant profit margin:
Profit per candy: PHP 2.50 - PHP 1.63 = PHP 0.87
Total revenue per batch: PHP 2.50 × 500 = PHP 1,250
Profit per batch: PHP 1,250 - PHP 816 = PHP 434
Funding Sources: Personal investment, friends and
family, and small business loans.
Revenue Model: Direct sales, retail partnerships, online
sales, wholesale partnerships, and tourism.
Profit and Loss Statement (P&L):
Projected Monthly Revenue:
Sales Projections
Monthly Sales Assumption:
Assuming the team produces and sells 5 batches (2,500 candies) per week:
Weekly revenue: PHP 1,250 × 5 = PHP 6,250
Weekly profit: PHP 434 × 5 = PHP 2,170
Monthly revenue (4 weeks): PHP 6,250 × 4 = PHP 25,000
Monthly profit: PHP 2,170 × 4 = PHP 8,680
Total Monthly Expenses:
Total Expenses = Raw Materials + Marketing + Miscellaneous + Labor
Total Expenses = PHP 16,320 + PHP 500 + PHP 300 + PHP 1,500 = PHP 18,620
Total Net Profit = PHP 25,000 - PHP 18,620 = PHP 6,320
Cash Flow Statement:
Assumptions:
- Monthly production and sales of 20 batches (10,000 candies).
- 50% of customers pay in cash, 50% pay on credit.
- Credit terms are 30 days.
Monthly Cash Inflows:
- Cash Sales: PHP 12,500 (50% of PHP 25,000 revenue)
- Credit Sales (collected): PHP 12,500 (50% of PHP 25,000
revenue collected from previous month)
Monthly Cash Outflows:
- Raw Materials: PHP 16,320 (PHP 816 per batch x 20 batches)
- Marketing & Promotions: PHP 500
- Miscellaneous: PHP 300
- Labor (optional): PHP 1,500 (part-time help)
Net Monthly Cash Flow:
6,320 (PHP 25,000 inflows - PHP 18,620 outflows)
Break-Even Analysis:
Break-Even Point: The break-even point is the number of candies
that need to be sold to cover all fixed and variable costs.
Calculation:
Fixed Costs: PHP 800 (PHP 500 marketing + PHP 300
miscellaneous)
Contribution Margin per Candy: PHP 0.87 (PHP 2.50 selling price
- PHP 1.63 cost per candy)
Break-Even Point (in units): PHP 800 / PHP 0.87 = 919 candies
Break-Even Point (in batches): 919 candies / 500 candies per
batch = 1.84 batches
Risk Management and Contingency Plan
A. Internal Risks: Financial Risks
Production Challenges - Funding Shortfalls
- Cost Overruns
- limited Rambutan Supply - Cash Flow Problems
- Quality Control Issues
Human Resources Risk
- Recipe Variability - Employee Turnover
Operational Risk -Lacked of skilled labor
- Production Delay
- Inventory Management Issues
- Storage Challenges
B. External Risks: Legal and Regulatory Risks
Market Risks: - Food Safety Regulations
- Cosumer Acceptance
- Labeling Requirements
- Competition
- Changing Consumer
Preferences
Economic Risks
- Recession
- Inflation
Environmental Risk
- Climate change
Risk Mitigation Strategies
Production Challenges
Market Risk
- Diversify Suppliers
- Targeted Marketing
- Implement Quality Control
- Product Innovation
Procedures
- Competitive Analysis
- Recipe Standardization
Economoc Risk
Operational Risk
- Cost Control
- Equipment Maintenance
- Diversification
- Inventory Control System
Environmental Risk
- Climate-controlled Storage
-Sustainable Sourcing
Financial Risks
- Packaging Sustainability
- Secure Funding
Legal & Regulatory Risks
- Cost Management
- Legal Compliance
- Cashflow management
- Legal Counsel
Human Resource Risk
- Employee Training
- Competitive Compensation
Contingency Plan
Rambutan Supply Disruption Consumer Rejection
- Marjeting Adjustment
- Alternative Suppliers
- Product Refinement
- Alternative Ingredients
- Product Adjustments
- Product Adjustments
Competition
Production Delay
- Differentiation
- Backup Equipment
- Innovation
- OvertimeProduction
- Strategic Partnership
- SupplierCommunication
Financial Shortfall
- Emergency Funding
- Cost Reduction Measures
- Delayed Investment
