Académique Documents
Professionnel Documents
Culture Documents
-Copyright @ 2016
TABLE OF CONTENTS
I. INTRODUCTION
II.
e. Logo
f.
10
Tagline
10
11
EXECUTIVE SUMMARY
12
14
14
25
c. Analysis of Competition
27
29
34
34
36
37
47
V. BUSINESS LAYOUT
45
a. Location Mapping
45
b. Floor Plan
46
45
a. Product / Service
47
b. Place
47
c. Price
49
d. Promotions
50
e. Business Strategies
54
f.
Product vs Pricing
56
56
58
i. Growth Matrix
58
VII.
ORGANIZATIONAL PLAN
a. Form of Ownership
62
b. Table of Organization
62
63
IX.
62
64
a. SWOT Analysis
64
b. Contingency Plans
65
FINANCIAL PLAN
66
66
67
X.
APPENDIX
73
XI.
BIBLIOGRAPHY
76
I.
INTRODUCTION
A. Name & Address of Business:
The business is called Crafts & Coffee. Its a straightforward reflection of
what the business is all about and whats totally unique about ita crafts
studio wherein art-lovers, coffee-lovers, and anyone looking for something
new to try come together to learn different arts and crafts while enjoying a cup
of coffee. Not only is it easy to pronounce and remember, it would also
instantly attract coffee lovers, artists, crafts enthusiasts, hobbyists, or simply
those who would like to embrace their creative side or learn something new
while enjoying delicious cakes, frappes, or coffee.
Every craft session features an in-store artist who is very passionate and
knowledgeable about the craft he or she will teach as well as custom-made
instructional videos to help customers create wonderful projects they can also
do at home. The craft session fee already includes the materials needed for
the projects and a minimum consumable amount for any drink or meal.
Customers may still order additional drinks or meals while working on their
projects and will be added to their bill later on. Another great thing about
Crafts & Coffee is that it also welcomes customers just looking for a place to
relax with great coffee and delicious desserts or pastry. Walk-ins are also
welcomed if slots are still available.
Crafts & Coffee aspires to become the leading and go-to caf for arts and
crafts lovers with stores nationwide by the year 2020.
E. Logo:
(Secondary logo)
Crafts & Coffees main mark comprises of the following elements: First is a
pair of scissors, a tool widely used in crafting, it represents crafts. The right
scissor was designed in such a way that it takes the form of a pencil to
represent art. Thus, overall signifying arts and crafts, which is the theme
and nature of the caf business. Further, the handles of the scissors are
implied letter Cs that stand for the business name. The X-form is a symbol of
intersection or crossroads to symbolize the caf as a place where arts, crafts,
and coffee lovers come together for pastime and unwinding. Second is a
broken line, broken lines are often used as marks and guides for cutting
papers or boards straightly. Moreover, it also symbolizes coffee drops coming
out from a coffee dispenser to a cup, thats why its in color brown.
Color Processes
The brown color of the brand identity represents coffee, which is one of
the primary offerings in the business. The color orange signifies warmth,
happiness, and relaxation. Crafts & Coffee is a stress-free place where
customers can get cozy while having cup of joe or learning new arts and
crafts activities. The overall mark is enclosed in a hexagon shape, which
symbolizes a beehivea busy and active place. Entirely, the mark was
rendered with curved lines and soft edges to suggest movement and pleasure
because of its gentle and swift appearance.
Typeface
The typography of the wordmark is an uppercase bold sans serif font
since studies say that uppercase lettering in thick weight is important in
memory recall and sans serif is viewed as legible and potent.
F. Tagline:
Caf for the creative you.This tagline is a straightforward message that
tells the customers that Crafts & Coffee is not their ordinary cozy caf or
coffee shop wherein anyone could just get coffee, other drinks, and desserts.
Its the unique caf for customers who want to explore their creative side or
those who just love to create and craft as it invites customers looking for new
and unique pastime or activities that only requires creativity and imagination.
G. Statement of Financing:
The business will source its starting capital through a combination of debt
and equity financing, which is specified below:
The undersigned reader of Crafts & Coffee hereby acknowledges that the
information provided is completely confidential and therefore the reader
agrees not to disclose any information found in the business plan without the
written consent of the owners and professional managers of the business.
This is a business plan. It does not imply an offer of any securities. This
contract shall be governed by the laws of the County of the Republic of the
Philippines and any applicable law.
11
II.
EXECUTIVE SUMMARY
This paper is a business plan for Crafts & Coffee; a coffee shop that also offers
crafts workshop or studio by using instructional videos while the customer can enjoy having
their favorite coffee and food. Crafts & Coffee provides scheduled crafts workshop that
customers may avail if they want to. In the crafts workshop each customer who signed up
will be provided materials and instructional videos based on what arts and craft workshop is
allotted on that day, knowledgeable artists will also around to help the customers in making
the crafts as well. Each table for the customer will feature a tablet/Ipad so that they may use
it based on the phase that they are currently doing so that they may pause the instructional
video or go back if they want to re do or re study a certain step in making the craft. What
makes Crafts & Coffee different from other coffee shop is its offer for art-lovers, coffeelovers, and anyone looking for something new to try coming together to learn different arts
and crafts while enjoying a cup of coffee. The Starting capital to establish this business is
around 3,950,000 PHP.
Our company aims to create personal and collective experiences that not only
provides stress-relief and comfort, but also promote creativity, self-development, and social
bonding. Our companys tagline is Caf for the creative you because it is a straightforward
message that tells the customers that Crafts & Coffee is not their ordinary cozy caf or
coffee shop wherein anyone could just get coffee, other drinks, and desserts. Its the unique
caf for customers who want to explore their creative side or those who just love to create
and craft as it invites customers looking for new and unique pastime or activities that only
requires creativity and imagination.
12
The current situation of the coffee industry states that drinking coffee has always
been a craze among Filipinos with a demand about a 100,000 metric tons per year
according to Pacita Juan (2014), co-chair of the Philippine Coffee Board. The Philippine
Coffee Board (PCB) Inc. (2008) stated that with each passing year, Filipinos coffee
consumption surges by 20 percent for specialty or premium coffee and 5 percent for readyto-drink coffee. According to a market research done by Euromonitor (2016), coffee is
projected to have a sales growth at a 7% CAGR both in retail volume terms and at constant
2015 prices over the forecast period.
Crafts & Coffee is located along Maginhawa Street, which is now a popular place
where well-established and famous place filled with various restaurants and coffee shops
including our direct competitors like The Nook Caf, Round Robin Caf, Artsy Caf, The
Lost Bread, and The Breakfast Table. Starbucks and Figaro are the indirect competitors of
Crafts & Coffee.
Through the use of demographics and psychographics our companys target market
consists of the lower-middle class to upper class coffee shop lovers and art enthusiasts.
These are the young adults ages 18-35, who are able and are willing to spend a good
amount of money on things like coffee and crafts frequently.
Crafts & Coffe is locared at 188 Maginhawa Street, Sikatuna Village, Quezon City
1101, which is situated at the area also known as StrEat: Maginhawa Food Park. This
place is mostly visited by the target market of the business, which are the millennial/young
adults.
Crafts and Coffee created a website for the client that will enable them to
conveniently know the schedule for the arts and craft workshop, the price of the products,
some pictures on what the company does and as well as the location.
13
III.
INDUSTRY ANALYSIS
bags of coffee had been consumed on the Philippines (Statista, 2016), whereas about
3 million kg bags of coffee was consumed by Filipinos by the year 2015. There has
been a huge increase in the Filipinos consumption of coffee from the year 1990 up to
2015, which can be attributed to the increase in overall food and beverage
consumption as population and income continues to rise, and the booming BPO
industry which has long and varied operating hours from the normal Philippine
workforce (Ang, 2011).
Comparing the 4th Quarter of 2014 and the 4th Quarter of 2015, there is a
significant growth rate in terms of the Household Final Consumption Expenditure at
Current Prices in Million Pesos. Coffee products are included in the Food and Nonalcoholic beverages. With the table below, there is a 7.2% increase in growth rate.
(Philippine Statistics Authority, 2015)
15
Also, in the 4th Quarter of 2014 and the 4th Quarter of 2015, there is a
significant growth rate in terms of the Household Final Consumption Expenditure at
Constant 2000 Prices in Million Pesos. Food and Non-alcoholic beverages has a 6.5%
increase in growth rate as shown with the table below. (Philippine Statistics Authority,
2015)
16
The Creative industry is defined as totality of all the industries, which is rooted
in an individuals creativity, skill, and talent, that have the potential for wealth and job
creation through the generation and exploitation of intellectual property. In the
Philippines creative industries include a wide array of sub sectors including
advertising,
animation,
architecture,
broadcast
arts,
crafts,
culinary
arts,
cultural/heritage activities, design, film, literature, music, new media, performing arts,
publishing, and visual arts as seen in the figure below. (Arangkada Philippines, 2016)
17
Filipino designers and people who create various crafts have helped the country
to be known as the Milan of Asia in various designer circles (Joint Foreign Chambers,
2010). In fact in 2005, the Creative Economy Report released by the United Nations
Development Programme (UNDP) cited the Philippines as one of the top 10 exporters
of visual arts among developing countries. The Philippines exported around $107
million worth of goods in 2005 and creative industries in the country contributed some
4.92 per cent to the gross domestic product and cited as the fifth in the export of
sculptures.
Philippine copyright-based industries contributed P661 billion to the local
economy, equivalent to about 7.34 percent of the countrys gross domestic product
(GDP). These industries also accounted for about 14.14 percent of the countrys total
labor force in 2010. These findings, which demonstrated the economic viability of the
18
creative industries, were based on the 2013-2014 study prepared by the Intellectual
Property Office of the Philippines (IPOPHL) and the World Intellectual Property
Organization (Wipo), which focused on the contribution and significance of copyrightbased industries (CBIs) to national economies.
It was even noted by IPOPHL director general Ricardo R. Blancaflor, that the
percentage contribution of copyright-based industries to GDP is very high compared to
the rest. In terms of employment, the contribution of Philippine CBIs to the economy is
the highest in the world. He even added that these results have a very big implication.
That means the production of the creative industry should be in the radar of the
business community, the banks and economic planners.
Arts and Crafts can be included in the Recreation and Culture. Comparing the
4th Quarter of 2014 and the 4th Quarter of 2015, there is a significant growth rate in
terms of the Household Final Consumption Expenditure at Current Prices in Million
19
Pesos. With the table below, there is a 9.1% increase in growth rate. (Philippine
Statistics Authority, 2015)
Also, the 4th Quarter of 2014 and the 4th Quarter of 2015, there is a significant
growth rate in terms of the Household Final Consumption Expenditure at Constant
2000 Prices in Million Pesos. Recreation and culture gained a 8.2% increase in growth
rate as shown with the table below. (Philippine Statistics Authority, 2015)
20
21
country has landed the 70th spot with an Economic Freedom Status of being
moderately free. Monetary Freedom and Management of Public Finance are the
current notable successes of the Philippines, while the main concerns include the rule
of law and labor freedom. (Index of Economic Freedom, 2016)
For the past three years since the year 2013 during the Aquino administration,
there has been a significant increase in the growth of the Gross Domestic Product.
While in the year 2013, GDP Growth was 7.1% and in 2014 the GDP Growth was
6.1%, in the year 2015 the GDP Growth dropped to but still a stable 5.8% due to weak
external demand, typhoons and El Nio. (Asian Development Bank, 2016) The slow
start due to the weak government spending in the first half of 2015 was immediately
remedied with the bouncing the economic status in the latter half of the year giving an
annual total of 5.8% which can still be considered as a solid rate in the GDP growth.
(The World Bank, 2016)
Socioeconomic Planning Secretary Emmanuel Esguerra (2016) said the
Philippines is the fastest-growing economy among 11 selected Asian economies in the
first quarter of the year, outpacing expansions in China (6.7 percent), Vietnam (5.5
percent), Indonesia (4.9) and Malaysia 4.2 percent). This exceeds market expectations
as the the Philippine economy grew by 6.9% in the first quarter of 2016 according to
the Philippine Statistics Authority (PSA).
22
The country's growth based on gross domestic product (GDP) or the total value
of all goods and services produced was higher than the last quarter of 2015, when
growth was recorded at a revised 6.5 percent. The agency said the revision was due
to similar upward revisions in numbers in electricity; gas and water; public
administration
and
defense;
transport storage
and
communication;
financial
intermediation; and mining and quarrying (Diola & Cerda, 2016). This high economic
growth shows that there is more value addition in the economy or there is a higher
income or rise in expenditure which implies that there is a rise in the standard of living
of the citizens and due to rise in income there will be a higher spending on various
goods and services (Modi, 2014).
23
While Boundless (2016) added the point that purchasing power can change if
the price of goods increases/decreases, or if inflation increases/decreases. A higher
real income means a higher purchasing power since real income refers to the income
adjusted for inflation. Also, if the economy expands causing consumer confidence to
be higher, consumers will be making more purchases. On the other hand, if the
economy contracts or is in bad shape, confidence is lower, and consumers tend to
save more and spend less.
The presence of more restaurants, coffee shops, and even convenience stores,
shows that more Filipinos have the capacity or purchasing power to shop and dine
(Rodriguez, 2014), and this increase in the purchasing power of the Filipino
consumers can be attributed to the Philippines increasing economy (Abola, 2016).
Filipinos tend to be confident enough to make more purchases. Together with the
recognition of the continuous growth potential for coffee shops, many Filipino
companies and even growers of locally produced coffee beans have already opened
their own businesses. The support of the local government and agriculture sector to
farmers has also helped to rejuvenate the Philippine coffee industry (Ang, 2012).
24
B.
to have a sales growth at a 7% CAGR both in retail volume terms and at constant
2015 prices over the forecast period. Coffee is expected to continue to grow as a
staple product not just to start the day but to provide a boost whenever needed. With
an expanding audience in terms of age and with different products for various
economic segments, coffee can expect to see continued positive growth (Euromonitor,
2016). Coffee is generally considered to be a household staple even among the lower
economic classes. At present, soluble or instant coffee accounts for about 90 percent
of all the coffee consumed in the Philippines. Domestic coffee consumption is
estimated to increase slightly due to a predicted increase in overall food and beverage
consumption as population and income continues to rise. The booming BPO industry
which has long and varied operating hours from the normal Philippine workforce is
also expected to contribute to the increase in coffee consumption (Ang, 2011).
Artisanal coffee shops will continue to flourish due to the growing number of
Filipinos who are now becoming increasingly sophisticated when it comes to their
choices of coffee (Euromonitor, 2016). Furthermore, according to analysts, specialist
coffee shops in the Philippines are expected to continue growing in the coming years.
With international coffee chains gaining popularity and other specialty coffee shops
following suit, more such outlets are likely to appear. The strong growth is mainly
attributed to excellent consumer demand, as coffee drinking has become a very
popular social activity. Coffee shops have become a status symbol for younger
25
C.
Analysis of Competition
Independent players dominate cafs/bars as they contributed an 89% share of
total value sales in the channel in 2015 (Euromonitor, 2016). Since the business
establishment would be located along Maginhawa Street, a well-established and
famous place filled with various restaurants and coffee shops, direct competitors are
cafes like that of The Nook Caf, Round Robin Caf, Artsy Caf, The Lost Bread, and
The Breakfast Table. All these coffee shops offer their own specialty coffees and other
26
foods in their menu, and a comfortable place to stay while eating. The only thing that
differentiates these cafes from each other is the theme of their place and menu. The
Nook Caf is a Harry Potter themed caf, while Round Robin Caf and The Lost
Bread features an American theme and menu, Artsy Caf offers a classy and colorful
ambiance with an American and Filipino-themed menu, whereas The Breakfast Table
distinguishes itself by focusing on a Filipino-themed menu. All business establishment
focuses on their menu and in providing a place for customers to stay for a while.
However, they dont offer other services or activities that the customers can enjoy or
engage themselves in during their stay inside the said coffee shops.
In the caf industry in the Philippines, 70% of the market share consists of
International players, which then supports their strong presence and dominance in the
Philippines (Anh, 2016). As such, another formidable direct competitor is that of the
Starbucks which holds 58% of the market share in the caf industry in the Philippines
as they offer coffee blends, instant coffee, non-coffee blended beverages, smoothies,
teas, ice-cream, merchandise, and fresh food. Starbucks has the widest network of
outlets among cafs/bars, with 269 outlets across the Philippines in 2015. Aside from
27
the brand being a status symbol, consumers patronage is also hinged on the kind of
drinks and food it provides and the pleasant experience that they receive whenever
they visit Starbucks (Euromonitor, 2016).
Figaro Coffee Co. on the other hand, which has a market share of 10% with
about 67 outlets nationwide and coffee, fine meals, pastries and dessert in their menu
(Euromonitor, 2016), is an indirect competitor of Crafts and Coffee together with Costa
Coffee which offers handcrafted coffee (GMA News, 2014).
D. Target Market
Segmentation
In the process of subdividing the market into buyers distinct groups with
different characteristics, needs, or behavior that might require marketing programs or
separate products (Amstrong and Kotler 2006), Crafts and Coffee has segmented its
markets in terms of demographics and psychographics which deals with the
geography, age, income class, and as well as the behaviors of the possible customers.
Demographics
The graph below outlines the total market potential (in percentage of the total
number of possible customers) in Quezon city, the largest city in Metro Manila, which
has an estimated population of 3,085,786 (Quezon City Official Website, 2016).
28
Preteens,
Teens
12%
Young Adults
27%
Children
24%
Adults
25%
29
Region (NCR). These are the possible segments that Crafts and Coffee could target.
(Albert, Gaspar & Raymundo, 2015)
Income Classes in the Income Distribution, Income Thresholds and Sizes of Income
Classes in 2012 (Only Lower-Middle Class to Upper Class included)
30
Psychographics
Consumer Behavior
As coffee shops sprouted all over the country during the past years, drinking
coffee has truly become a social activity amongst the Filipinos as they flock around
various coffee shops in the area (ANC, The World Tonight, 2015). Nowadays, the
hobbies of young adults include that of conversing with friends, watching movies,
playing games, reading, dancing, listening to music, and spending their time doing
various arts and crafts projects (Social, Weather Station, 2000), and the incorporation
of technological devices and multimedia approaches in learning something they are
interested in are said to be the most effective approach in learning (Craig, Driscol, &
Ghilson, 2004).
According to the report, the Philippines ranks second worldwide when it came to
most minutes spent using screens at 531 minutes (or more than 8 hours) a day, a few
minutes behind Indonesias 540 minutes. European countries use their devices less,
with Britain registering 411 minutes, Spain at 396 minutes, Germany at 379 minutes,
France at 326 minutes and Italy at 317 minutes.
31
Targeting
Since the products and services offered by Crafts and Coffee will cater to
people who want to get their daily cup of great-tasting coffee in a relaxing atmosphere
and as well as to engage themselves in learning new crafts through the incorporation
of multimedia. Crafts and Coffees target market consists that of the lower-middle class
to upper class coffee shop lovers and art enthusiasts in Quezon City. These are the
young adults ages 18-35, both male and female, who live a lifestyle where they are
able and are willing to spend a good amount of money on things like coffee and crafts
32
frequently. With this, we decided to have a product differentiation that caused the
pricing our products and services to be a little bit high because we will depend on the
quality of both.
Crafts and Coffee will be targeting people who are coffee lovers, arts and crafts
lovers, or both. We will include in the target market those who are willing to spend in
order to learn something new and innovative when it comes to arts and crafts. In here,
we will be using gadgets, specifically tablets with a free WIFI access, in order to cater
the learning need of the customers.
Positioning
Crafts and Coffee aims to provide a one-of-a-kind experience in learning arts
and crafts through the incorporation of multimedia while having fun and enjoying any
type of product the shop offers. The main difference of the Crafts and Coffee against
the other shops is its service of offering state-of-the-art facilities and equipment that
promotes the creative process while satisfying the cravings of the customers for food
and beverages.
33
IV.
Description
COLD Beverage
Frappuccino Vanilla
Frappuccino Strawberry
Frappuccino Green tea
Frappuccino Chocolate
Iced Green tea
Packed Juice
Mineral Water
Desserts
Daily Activities
Operation
Open MONDAY to SUNDAY (10:00am to
9:00pm)
Daily Schedule
Twenty (20) Slots Per Session
SESSION 1 - 10:00am to 1:00pm
SESSION 2 1:30pm to 4:30pm
SESSION 3 5:00 to 8:00pm
Mondays
SESSION 1: Paper Cutting
34
35
The following are the Micro, Small and Medium Enterprises (MSMEs) Classification for
businesses:
Enterprise
By Asset Size
By Number of Employees
Micro
Up to Php 3,000,000.00
1- 9 employees
Small
10 99 employees
Medium
Php
15,000,001.00
100,000,000.00
36
Quantity
Price/unit(pesos)
5000 pcs
Php 110.00
27bags
Php 280.00
Portland cement
85 bass
Php 345.00
Tile grout
4kgs
Php 80.00
2 sets
Php 8,000.00
16pcs
Php 25.00
150pcs
Php 58.00
262pcs
Php 700.00
10pcs
Php 1,200.00
#4 CHB
200pcs
Php 8.00
2 box
Php 1800.00
3 gang switch
15pcs
Php 180.00
35pcs
Php 180.00
9 gal.
Php 2,200.00
25 gal.
Php 700.00
Hose bidet
2 pcs
Php 600.00
Faucet
4pcs
Php 400.00
16 liters
Php 400.00
Tinting color
2 pint
Php 120.00
1/2x2x8 edging
9pcs
Php 220.00
Sand
1 truck load
Php 1,200.00
Common nail #3
5 kilos
Php 100.00
37
Concrete nail #4
3 kilos
Php 80.00
Finishing nail #2
5 kilos
Php 120.00
35 pcs
Php 100.00
3 gang outlet
15 pcs
Php 180.00
EQUIPMENT
Product Type
Quantity
Price/unit(pesos)
Espresso Machine
2 pcs.
Php 31,510.00
Espresso Grinder
1 pc.
Php 64,400.00
Microwave
1 pc.
Php 4,298.00
Toaster
1 pc.
Php 2,699.00
Refrigerator
1pc.
Php 18,600.00
Blender
2 pcs.
Php 1,097.00
Generator
1 pc.
Php 30,000.00
FURNITURES
Product Type
Quantity
Price/unit(pesos)
Wooden Tables
15 pcs.
Php 1,480.00
Wooden Chairs
60 pcs. = 15 sets
Php 1,200.00
(1 set = 4 pcs.)
Air condition system (split type)
3 pcs.
Php 23,999.00
Exhaust Fan
1 pc.
Php 1,615.00
38
Electric Fan
3 pcs.
Php 799.00
Wooden Shelves
3 pcs.
Php 745.00
SMALLWARES
Product Type
Quantity
Price/unit(pesos)
Steaming Pitchers
2 pcs.
Php 427.34
Shot Glass
1 box = Set of 6
Php 551.54
Set of 6
Php 689.00
1 pc.
Php 550.62
1 pc.
Php 4,048.00
3 packs
(1pack = 2 bottles of
8oz/240ml)
Php 32.00
Pumps
8 pcs.
Php 137.54
2 pcs.
Php 329.82
Knockbox
1 pc.
Php 130.00
Apron
4 pcs.
Php 40.00
Plates
4 boxes
(1 box = 12pc.)
Php 1,299.00
DISPOSABLES
Product Type
Insulated Paper Hot Cup
Quantity
1 box of 12oz = 20 Packs
of 50
Price/unit(pesos)
Php 2,800.00
39
of 50
Paper Hot Cup Lid
Php 2,470.00
1 box = 200pcs.
Php 320.00
Coffee Stirrer
1 box = 200pcs.
Php 280.00
Table Napkin
1box = 3 packs
Php 1,550.00
50pcs.
Php 54.00
CLEANING SUPPLIES
Product Type
Quantity
Price/unit(pesos)
1 pc.
Php 548.00
Set of 5
Php 252.00
Glass Cleaner
1 liter
Php 218.00
Furniture Polish
1 liter
Php 650.00
Floor Cleaners
1 liter
Php 210.00
Sponge
3 pcs.
Php 35.00
Paper Towel
3 rolls
Php 28.00
Scrubbing Brush
1 pc.
Php 56.00
Toilet Brush
1 pc.
Php 74.00
1 pc.
Php 350.00
Dishwashing Liquid
1 liter
Php 42.00
40
1 liter
Php 38.00
Toilet Cleaner
1 liter
Php 162.00
OFFICE/COUNTER SUPPLIES
Product Type
Quantity
Price/unit(pesos)
Cash Register
1pc.
Php 39,000.00
PC
1pc.
Php 12,000.00
Telephone
1pc.
Php 800.00
File Cabinets
1 pc.
Php 2,799.00
Order Slip
2 booklets
Php 120.00
2 booklets
Php 72.00
Ballpen
1 box
Php 45.00
WORKSHOP SUPPLIES
Product Type
Quantity
Price/unit(pesos)
10 pcs.
Php 22,954.00
Desk
12 pcs.
Php 1,250.00
Markers
1 boxes
Php 330.00
Pens
1 boxes
Php 180.00
Blank Sheets
1 bundle
Php 299.95
1 bundle
Php 399.25
1 bundle
Php 639.00
1 bundle
Php 520.50
Glue
5 pcs.
Php 54.00
Masking Tape
1 boxes
Php 120.00
Scissors
10 pcs.
Php 28.00
Stamp
3 pcs.
Php 32.00
41
10 packs
Php 82.00
1 bundle
Php 68.00
1 bundle
Php 94.00
1 bundle
Php 75.00
1 bundle
Php 60.00
10 boxes
Php 25.00
Canvas
20 pcs.
Php 445.00
10 pcs.
Php 27.00
10 pcs.
Php 263.00
10 pcs.
Php 202.00
10 pcs.
Php 320.00
10 pcs.
Php 62.00
Paper Cutting
42
Watercolor Doodling
Short Vellum Board 10s (Free, 250pcs. (for one month))
5 pcs. per student (1 pack = 2 students)
6 sessions in a week x 10 x 4 weeks = 240 packs (10 packs extra)
Php19.50 x 250pcs. = Php4,875.00
Paint Brushes 4s (Store-owned, 30pcs.)
Php169.75 x 30pcs. = Php5,092.50
Palette (Store-owned, 20pcs.)
Php14.75 x 20pcs. = Php295.00
Watercolor Paint Tubes 12s(Store-owned, 10pcs.(for one month))
Php323.00 x 8pcs. = Php3,230.00
43
Considering the National Capital Region Minimum wage for construction workers,
the total cost of labor is as follows:
Position
Days of Work
Total Wage
Construction
Workers
Php 466.00
20 days
Days of Work
per month
Total Wage/Month
Baristas
Php 454.00
26 days
Php 11,804.00
Server/Waiter
Php 454.00
26 days
Php 11,804.00
Considering the minimum wage for art instructor with a degree of Bachelor of
Fine Arts or any related course, the total cost of labor is as follows:
Position
Min.
day
Wage
Instructors
Php 692.00
Php 18,000.00
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V. BUSINESS LAYOUT
A. Location Mapping
Spot Mappin
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VI.
A. Product Strategy:
Crafts and coffee is not the usual coffee shop. What makes it different is that it
focuses on teaching new arts and crafts to learn in a cozy cafe so customers can enjoy
learning alongside delicious drinks or sweets. A perfect stop for art and coffee lovers.
The caf is designed for the target market, which are the millennial/young adults who
can truly appreciate the ambience of an artsy themed caf. Mobile tablets will be
installed on tables so customers will be guided by custom-made instructional videos,
which they can also freely navigate on depending on their pace. Tools will be provided
for rent by the cafe and the materials for the final craft will be given for free. To make
them feel inspired and pumped up in doing crafts, walls and shelves of the caf is
served for the customers who choose to display their craft works.
hues
for
that
cozy
and
attractive
feel.
B. Placement Strategy
The business will be strategically located at 188 Maginhawa Street, Sikatuna
Village, Quezon City 1101, which is situated at the area also known as StrEat:
Maginhawa Food Park. This place is mostly visited by the target market of the
business, which are the millennials/young adults. Customers from nearby universities
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like University of the Philippines, Ateneo De Manila University, and Miriam College, as
well as individuals from Manila and Katipunan frequently stop by cafes or restaurants in
this area.
Before the shops opening, there will be advertising and promotions in social
media sites and the cafs website including the location map to get potential customers
for the shops opening. These distribution channels are used for the reason: the target
market which are the millennial/young adults generally make use of these channels or
platforms almost everyday. By making use of this method, the caf and its brand identity
will be more exposed and familiar to people and will attract potential customers by the
time of the shops opening.
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C. Pricing Strategy:
For the pricing strategy, Crafts and Coffee will implement a premium pricing
strategy wherein the price of the products/services is much higher as compared to other
cafes or coffee shops. This is common for small businesses that offer unique and highquality product/services. In relation, the cafe will focus on product quality with its unique
coffee experience and excellent art-related service. In here, P500 will be the price of
each session which includes a medium sized drink.
This method could make the customers feel they are special. Since there are
only limited slots offered in the caf. Also this would also lead to high profit margin. On
the other hand, there are also disadvantages of this method which includes branding
cost, competition, sales volume, and high costs. Overall this method will have a high
risk. If the service/products offered does not satisfy the customers, the business will be
at risk. But if the services/ products offered will satisfy the customers and make them
think that it is worth the high cost, then this business strategy will be effective.
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Price List
D. Promotion
In promoting our brand and company, we will employ a straightforward and
differentiating advertising strategy. Advertisements on both print and electronic media
platforms will directly showcase the unique selling proposition of the cafe. Featuring flat
lay scenes of crafting in action while having a cup of coffee to show the main concept of
the business. The company will leverage on the internet and social media platforms like;
Instagram, Facebook, Twitter.
Crafts & Coffee will also invite bloggers and influential celebrities to further
promote and advertise our products and services because nowadays bloggers and
celebreties can increase the sales and customers of a company because they have a
great impact on the view and perception of the people specially those who adore and
follow them in their social media accounts.
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Crafts & Coffee will also have an interactive website and use the platform to
promote the shop. The website will allow interested target market to book sessions,
view a wealth of information regarding the shop, the products, the production methods,
and other information.
Additionally, upon the cafes opening, free taste promo will be implemented so
customers would know which item they would like to order. This technique may attract
more customers if ever positive feedback is obtained. Further, its also a way of showing
that the Crafts and Coffee promises quality and detail with its products, aside from the
main service.
Business Card
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Teaser Ad
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Intro Ad
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Sustaining Ad
Website (Homepage)
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Leaflet Ad
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E. Others:
Product vs Pricing Differentiation
Crafts and Coffees reputation relies mostly on the value of the products
and services it offers to the businesss target market, which is then backed up
by a premium pricing strategy. The prices of these products/services are
much higher compared to other cafes or coffee shops, since prices
communicate a perceived value of a product; so if set too low, the customers
might assume that the offerings of the business are inferior compared to the
competitors.
Introduction
As a start-up business, Crafts and Coffee belongs to the
introductory phase of the product life cycle wherein revenue and profit are still
at a minimal. Since its products and services have just been introduced into
the market, it is vital to make the business known to its target market, and as
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57
Crafts and Coffee will employ the usage of mobile tablets installed
with custom-made instructional videos to teach new arts and crafts projects to
its customers alongside delicious drinks or sweets as the product strategy of
the business. The business will then be strategically situated at Maginhawa
Street, Quezon City, a place which is mostly visited by the target market of
the business, which are the millennials/young adults for the placement
strategy. A premium pricing strategy would be implemented, and a
straightforward and differentiating advertising strategy would be utilized for
the promotions strategy wherein the advertisements on both print and
electronic media platforms will directly showcase the unique selling
proposition of the caf.
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discounts in order to penetrate the market, and to increase the business market
share in the current market scenario. To achieve this, more refined products or
services would be sold to established customers in order to create a competitive
advantage amongst its competitors.
In the future, Crafts & Coffee aims to extend its product and service
offerings into a wider product range than its competitors. Crafts & Coffee will
come up with new products which may benefit their current customers such as
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new formulas for coffee, additional art on coffee cream or the new food in their
menu. Adding more activities for the workshop will also be added for the service.
Diversification Strategy
equipment
store
or
different
type
of
food
restaurant.
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General
Manager
Gian Wong
Finance
Waiter
Barista
Cashier
Darla Rivera
Book Keeping
Andrei Queano
He/She is responsible for keeping records of the expenses and income of the
business to determine the growth, breakeven & loss of the business of Crafts & Coffee
Cashier
He/she is responsible for collecting the cash earned in services and food paid by the
customers
Barista
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Checking the stocks of coffee and other items used in making drinks
Instructors
Will be invited to teach and guide the cutomers; payed per session
Servers/ Waiters
Cleaning Duties
Weaknesses
-
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Opportunities
-
Technological developments
Geographical expansions and
franchising
Establish a good bond with the
employees and with other
customers.
Growing market niche of coffee
lovers and crafts enthusiasts
Use of social media platforms to
promote the business
Market expansion
Threats
-
B. Contingency Plans:
Problem
1. In the event of a fire in the store
Solutions
A. Call the U.P. Diliman Police Station
and Fire Department telephone
number (02) 928 3615
B. Immediately inform the Person-incharge
C. The person/s near the fire will
attempt to extinguish the fire
D. If the fire is inextinguishable the
PIC is responsible to signal the fire
alarm for evacuation.
E. When the fire alarm rings, all
employees and customers should
evacuate the building and wait for
the Police and Fire Department to
arrive.
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2. Damaged or malfunctioned
equipment
3. Supplier is Unavailable
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XI. BIBLIOGRAPHY
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BBC News Asia. (2014, May). Could the Philippines be Asias next tech tiger? Retrieved
from: http://www.bbc.com/news/world-asia-27379715
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Diola, C. & Cerda, J. (2016). Phl GDP hits 6.9% in Q1 2016, fastest among major Asian
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Euromonitor (2016). Cafs/Bars in the Philippines. Retrieved at:
http://www.euromonitor.com/cafes-bars-in-the-philippines/report
Euromonitor (2016). Coffee in the Philippines. Retrieved at:
http://www.reportlinker.com/p0136195-summary/Coffee-in-the-Philippines.html
Euromonitor (2016). Writing Instruments in the Philippines. Retrieved at:
http://www.euromonitor.com/writing-instruments-in-the-philippines/report
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FFE Tech News Staff (2014, March). How does the Philippines fare in gadget use vs.
other countries? Retrieved from: http://ffemagazine.com/philippines-fare-gadgetuse-vs-countries/
GMA News. (2014). UK based Costa Coffee to open70-80 stores in PHL over five years.
Retrieved from:
http://www.gmanetwork.com/news/story/370732/money/companies/uk-basedcosta-coffee-to-open-70-80-stores-in-phl-over-five-years
Go, K. (2009, November). Brewing Boardroom Battle. Entrepreneur Philippines ,99(9),
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s=NGDPRPC%2CNGDPPC%2CPPPGDP%2CPPPPC%2CPPPSH%2CNID_N
GDP%2CNGSD_NGDP&grp=0&a=
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http://www.heritage.org/index/country/philippines
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APPENDIX A
BACKGROUND OF THE ENTREPRENEURS
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80
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85
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To obtain a Graphic Designer profile that will facilitate my career and utilize my creative skills
while broadening my graphic design, digital media design and animation experience to provide
the best graphical solutions and to work in a pragmatic way in an organization where I can show
my talent and enhance my skills to meet the company goals and objective with full knowledge
and integrity.
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PERSONAL STATEMENT
A fresh graduate Multimedia artist proficient in doing animated short films and
Advertisement .Skilled with adobe creative suit and 3D application MAYA.
OBJECTIVE
3D Software:
MAYA,
GRAPHIC:
Adobe Flash, Adobe Illustrator, Adobe InDesign
VIDEO:
Adobe Premier, Adobe AfterEffects, Vegas Pro.
Presentation:
PowerPoint, Keynote
EDUCATION
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