Executive Summary

Icing on Cupcake Bakery is a start-up bakery retail establishment located Muntinlupa City near
in Muntinlupa market. Icing on Cupcake Bakery expects to catch the interest of a regular loyal
customer base with pastry products. Our business plans to build a strong market position in the
town, due to the own' experience.Icing on Cupcake Bakery aims to offer its products at a
competitive price to meet the demand of the middle-to higher-income local market area
residents and tourists.

1.1Industry Overview

In January 2018 started Icing on Cupcake Bakery secured the proper licensing and began the
process of planning the new business. Icing on Cupcake Bakery is now ready to open a
wholesale. Icing on Cupcake Bakery are serving the low price to market. Located in Muntinlupa
City near in Muntinlupa market this will serve the needs of costumer and provide all the
convenience of each costumer.

1.2. Company Description

Icing on Cupcake Bakery is a bakery managed partner by own. These partners represent
sales/management and finance/administration areas, respectively. The partners will provide
funding from their own savings, which will cover start-up expenses and provide a financial
cushion for the first months of operation. The company plans to build a strong market position in
the City, due to the own industry experience and mild competitive climate in the area.

1.3. Mission Statement

Our mission is to be a shining example of a sustainable social enterprise by consistently

providing high quality food to customers whilst still delivering on our social responsible mission.

1.4. Vision Statement

Our Vision is a socially responsible business that provides excellent service with inclusive
employment

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1.5. Goals and Objectives

Goals

1. To be leading a reputable bake shop.

2. To provide good quality products.

3. To be competitive in the market

Objectives

1. To establish a business that people of the hunter region can enjoy.

2. Provide Sweet Veggie Cupcakes you will want to eat over and over again, while
also maintaining a quality and attractive look for each product sold.

2. Product and Service

Icing on Cupcake Bakery offers pastry products, all from Philippines. Icing on Cupcake Bakery
caters to all of its customers by providing each customer pastry, down to the smallest detail.

3. The Market

Icing on Cupcake Bakery focus is on meeting the demand of a regular local resident customer
base, as well as a significant level of tourist traffic from nearby highways.

3.1 Market Analysis

Icing on Cupcake Bakery launches with an exciting new pastry concept in a receptive and
steadily growing market segment—the specialty pastry retail business.

Despite economic downturns in recent years the specialty pastry business has been a bright
spot. While literally hundreds of businesses in many categories are facing poor sales, negative
balance sheets and even bankruptcy, pastry chains continue to show strong growth.

It's clear that Filipino's love for good pastry continues during good times and bad.
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Muntinlupa: The Perfect Launch Muntinlupa Market

By launching Icing on Cupcake Bakery in the Muntinlupa market we maximize our potential for
success due to several factors:

The highly affluent local population

Year-round tourist activity

Ever-changing upscale student population

Excellent auto and pedestrian traffic by our location

Low media costs

High number of local special events

Prime site location

Icing on Cupcake Bakery is located at what is arguably one of the best locations for a pastry
house in Muntinlupa—in the heart of the costumer and business district.

Icing on Cupcake Bakery has all the ingredients necessary for immediate success.

4. Marketing Plan

4.1. Introduction

Icing on Cupcake Bakery is a start-up bakery retail establishment located in Muntinlupa City.
Icing on Cupcake Bakery expects to catch the interest of a regular loyal customer base with its
broad variety of pastry products. The company plans to build a strong market position in the
town, due to the owners' industry experience and mild competitive climate in the area.

Icing on Cupcake Bakery aims to offer its products at a competitive price to meet the demand of

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the middle-to higher-income local market area residents and tourists.

4.2. Market Segmentation Strategy

Icing on Cupcake Bakery focuses on the middle- and upper-income markets. These
market segments consume the majority of pastry products.

Local Residents

Icing on Cupcake Bakery wants to establish a large regular customer base. This will establish a
healthy, consistent revenue base to ensure stability of the business.

Tourists

Tourist traffic comprises approximately 15% of the revenues. High visibility and competitive
products and service are critical to capture this segment of the market.

4.3. Targeting Strategy.

Icing on Cupcake Bakery customers can be broken down into two groups, singles, and non-
singles. The non-singles groups are smaller than the singles groups by virtue of the fact that if
you are meeting someone whom you already know, the two of you can come up with the topic of
conversation yourself, therefore, Icing on Cupcake Bakery offers this group less value. The
demographics for the non-singles is similar to the singles, to be listed below. The larger group
then is the singles.

The demographics of the singles are:

Single: Self Evident.

Professional: this characteristic is intuitive since the underlying element of Icing on Cupcake
Bakery is thoughtful conversation, and most professionals appreciate thought-provoking
conversation.

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Age 25-45: the largest group of singles looking for companions.

4.4. Positioning Strategy

Icing on Cupcake Bakery will position itself as a reasonably priced pastry that has an innovative,
effective system for allowing single to meet each other.

The Icing on Cupcake Bakery positioning will leverage their competitive edge:

A unique approach to getting singles together called the structured conversation system. This
system is a competitive edge because pastry do not have a niche that they are concentrating
on. While every pastry has a certain "flavor" and that is why someone will choose one bar or
another, the flavor is only surface deep.

Icing on Cupcake Bakery is distinguished by the fact that their business model concentrates on
developing value for customers beyond serving pastry. Icing on Cupcake Bakery develops an
effective, albeit inherently structured, social setting that encourages meeting like-minded
individuals. Providing the drinks is the source of income, an ancillary part of the business
model. Generating value for the customers is the main focus, if the customers are happy then
the revenue will follow (assuming of course that proper marketing and financial controls are
employed).

4.5. Marketing Mix

Icing on Cupcake Bakery marketing mix is comprised of these following approaches to pricing,
distribution, advertising and promotion, and customer service.

Pricing: the pricing scheme is based on standard industry practices.

Distribution: all services and products will be distributed from Icing on Cupcake Bakery retail
space.

Advertising and promotion: the most successful advertising will be in Weekly.

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Customer service: obsessive customer attention is the mantra. The Icing on Cupcake Bakery
is to do whatever needs to be done to impress the customer. While this could reduce short-term
profits, it will strengthen long-term profitability.

4.6. Sales Forecast

Shows the sales forecast of a Cupcake named Sweet Veggie Cupcake. For Illustration
purposes, We assumed that per box of cupcake sells for PHP 350 .Therefore, The sales
forecast must consider the product line and the varying price levels.

MONTH PROJECTED SALES(Unite) PROJECTED SALES(Pesos)

JANUARY 120 4,200

FEBRUARY 192 67,200

MARCH 288 100,800

APRIL 420 147,000

MAY 480 168,000

JUNE 500 175,000

JULY 600 210,000

AUGUST 600 210,000

SEPTEMBER 480 168,000

OCTOBER 640 224,000

NOVEMBER 720 262,500

DECEMBER 780 273,000

TOTAL 5,820 1,799,700

5. Organizational Plan

Icing on Cupcake Bakery will star as a partnerships by own by Castro Roselle, Ladignon

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Racquel, Lajot Leila Mae and Licud Marry Ann.

PERCENTAGES OF
NAME NUMBER OF SHARE OWNERSHIP
500,000 25%
CASTRO, ROSELLE
500,000 25%
LADIGNON, RACQUEL
500,000 25%
LAJOT, LEILA MAE
500,000 25%
LICUD, MARRY ANN

5.2. Organizational Chart

President : Castro, Roselle

Vice President : Ladignon, Raquel

Manager : Lajot, Leila Mae

Financial Officer : Briol, Shaira

Marketing Officer : Licud, Mary Ann

5.4. Roles and Responsibility of Management Team

President No one knows just what a president does. I've asked dozens of executives, and
everyone's answer is different. Some say a president oversees staff functions--human
resources, finance and strategy.

Vice President Primary responsibilities are managing client accounts and assisting in growth
and development of staff as well as the overall firm take responsibility for one internal area of

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management.

Manager An employee who is responsible for planning, directing and overseeing the operations
and fiscal health of a business unit, division, department, or an operating unit within an
organization. The manager is responsible for overseeing and leading the work of a group of
people in many instances.

Financial Officer Plain and simple, your Financial Officer handles the money. They create
budgets and financing strategies. They figure out if it's better for your business to lease or buy.
Then they build the control systems that monitor your company's financial health.

Marketing Officer Recently companies have been bringing in a marketing expert at the C-level
rather than as just a vice president.

6. Production Plan

6.1. Production Plan

Our production system shall strive to attain service excellence in addition to manufacturing safe,
quality products. This shall be undertaken through the engagement of modern production
techniques using up-to-date assembly technology. This will also result in low production costs
being attained by our business. We also intend to ensure that the suppliers we engage are
committed and reliable so as not to let down the final consumer in terms of the quality of the
product and time of delivery.

In order to improve productivity in our plants we intend to reduce waste and duplication in our
breweries by streamlining administrative functions and promoting and instilling a business
culture that focuses on the teamwork rather than individual productivity. By the undertaking the
above we will optimize our productivity given our available resources.

6.2. Physical Plant

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6.3. Machinery and Equipment

OPER
Baking Oven 6,600.00
Cream Cooker 1,800.00
Spiral Mixer 3,500.00
Cup Cake Pan/Tray 100.00
Cup Cake Stand/Tree 1,500.00
Refrigerator 6,000.00
Cupcake Refrigerator 5,800.00
Spatula 300.00
Cup Measurement 150.00
Bowls 250.00
Icings Bags 120.00
Cupcake Box 50.00
TOTAL
58,210.00

7. Operational Plan

7.1. Description of Company’s Operations

Icing on Cupcake Bakery processes used to produce product/service and deliver them to the
costumer and can include manufacturing, transportation, and so on. In all likelihood, about 80%

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expenses will be for operation, 80% for employees on working in operation, and 80% will be
spent time worrying about operating problems and opportunities.

7.2. Flow of Orders for Goods and Service

In order to deliver quality, personalized service we will carefully select all employees - with extra
attention given to sales reps and delivery personnel who will deal directly with customers. We
will carefully review references not just from past employers or manufacturers, but also from
retailers whom these sales reps have served. We will also make sure that each employee
understands our way of delivering quality service to each customer. We will have immediate
back-up support available by phone from our office for more difficult service issues. We will also
give employees enough latitude so that they can respond immediately to almost any customer
request or complaint - which in this industry usually means granting immediate credit for
damaged merchandise, and adding additional merchandise to an order.

8. Financial Plan

8.1. Start-up Summary

Icing on Cupcake Bakery is a bakery managed partner by Own. These partners represent
sales/management and finance/administration areas, respectively. The partners will provide
funding from their own savings, which will cover start-up expenses and provide a financial
cushion for the first months of operation. Our business plans to build a strong market position in
the City, due to the partners' industry experience.

8.2. Pro forma Balance Sheet

YEAR1 YEAR 2
Assets
Current Assets
Cash 80,000 160,000

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Accounts receivable 32,000 64,000
Inventory 36,000 72,000
Total Current Assets 148,000 296,000
Fixed Assets
Equipment 52,210 104,420
Less Depreciation 40,000 80,000
Total Fixed Assets 92,210 184,420
Total Assets 240,210 482,420

8.3. Pro forma Income Statement

YEAR 1 YEAR 2

Salaries 900,000 1,800,000

Rent Expenses 360,000 720,000
Utilities 48,000 96,000
Sales Expenses 180,000 360,000
Insurance Expenses 24,000 48,000
Depreciation Expenses 60,000 120,000
Total Expenses 1,572,000 3,144,000

8.4. Break Even Analysis

Assumed average selling price of PHP 350 per box of cupcakes, variable cost per unit is PHP
1,500 Fixed cost on the other hand in Year 1 is PHP 1,572,000. Using these figures, the
breakeven point will be computed as follows:

YEAR 1
(BEQ) = Total Fund Cost
Selling Price (SP) – Variable Cost/Unit (VC/U)
(BEQ) = 1,572,000
350 – 1,500
(BEQ) = 1,366.95 Units

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YEAR 2
(BEQ) = 3,144,000
350 – 1,500
(BEQ) = 2,733.91 Units

9. Exit Strategy

Icing on Cupcake Bakery investors invest earlier, and have three possible outcomes
for their successful portfolio companies. From an perspective, our business can
either:

1. Obtain financing from a venture capital fund,

2. Be sold, or

3. Go Public.

Today, in the latter part of 2018, tech IPOs are highly unlikely. Fortunately, the
market is extremely active.

A much larger percentage of Icing on Cupcake Bakery backed companies are being
sold before they complete either a venture capital or IPO financing.

A combination of these factors has given entrepreneurs and Investors a broader

range of options than in any other time in history.

Many are realizing the conventional wisdom of building a company up through the
friends and family financing Sweet Veggie Bakery financing, venture capital financing
and then an exit is not only less and less likely to occur, but (in the majority of
cases) is also far less desirable.

10. Assessment Risk

The present growth in the market may result in market saturation, through competition. This
competition could emerge from a variety of given sources including:

1. Established mass-market companies' development of new lines and vertically

integrating so as to be totally in control of supplies and products being sold on the
respective markets.
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 2. New marketing strategies and tactics by established products and companies.

3. Existing competition.

4. Other start-up companies generated by healthy economic growth nationwide.

5. Intolerable price increases by foreign suppliers may occur.

11. Milles tone

12. Appendices

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