Mission Statement

Mark Count Drivemart Grocery is an establishment wherein its preliminary and

most important goal is to give the highest service and convenient experience to its
customers and clients. Our mission is to provide products, services and business
opportunities to every Batangueños in convenient way and also establish lasting
relationship with our Suppliers and Business Partners. Believing that the customer is the
most important factor that affects the operations of the business, his satisfaction has
been and will always be the first and foremost priority above all.

Mark Count Drivemart Grocery also sees to it that its employees are trained and
motivated to be service-oriented individuals in order to maintain the practice of best
service to its customers and community, bearing in mind its five core values – Sense of
Belonging, Sense of Service, Dynamism, Commitment, and Loyalty and Integrity.

Executive Summary

MarkCount Drivemart Grocery, an innovated grocery store that is being proposed

by the students taking up Entrepreneurial Management subject, BM 111. This is a type
of a grocery store where in a drive thru is an option for the consumers who are rushing
in buying their necessary needs. Likewise, walk-in customers who wish to spend time
shopping inside the store is considered in the plan of this study. Having the idea of
planning this venture, this will help the consumers to attain the level of convenience
they have always wanted in grocery shopping. It has the primary objective to recalibrate
the type of grocery stores as a business opportunity in the market and to innovate the
existing ones in the market that will benefit the proponents, the firm itself, and the
consumers.

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 Primarily, Markcount Drivemart offers various products that can be found similarly
in other grocery stores. The firm depends on the number of suppliers that the firm is
connected that offers at the least cost for the consumers. Products offered especially
foods that are perishable will be classified based on the categories in grocery stores for
an easier way of transaction. There will be a particular convenience fee for every
minimum number of purchases that will be charged on the consumers item transactions.

Moreover, in reaching the consumers of MC Drivemart Grocery, the firm targets

consumers living in Batangas City, Ibaan, San Jose, and Mabini (16years old and
above), students and non-students such as professionals followed by its secondary
target market who are income earners residing in the target places and the sari-sari
store owners. It allows the aspiring entrepreneurs to assess the market potential of the
Markcount Drivemart Grocery and select the best suitable site. The potential customers
are willing to pay few more amounts for an item they purchase and also would reduce
the ‘time and costs from commercial enterprises associated with the filing and layout of
goods in the sales area, where there are several buyers in line. Below is the picture of
the map where the target residents are in.

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 In terms of capital and start-up costs, MC DriveMart Grocery has an estimated
amount of Php 90,000,000. It includes the initial capitalization of Php 83,500,000 which
is composed of the acquisition of land, construction of the building, obtaining licenses
and permits, marketing promotion expenses, the cost for start-up inventory, the cost of
purchasing storage hardware and the cost of store equipment. The 60% of the
remaining cash will be deposited in a bank as a contingency fund, and the other 40%
will be on hand to be used as the revolving fund if the business.

Searching for MC Drivemart possible competitors, the grocery stores that are
present in Batangas City are SM Hypermarket, Citimart, Robinson’s Supermarket
(Nuciti), Budget Lane, Puregold, SDC Coopmart, SM Supermarket, and Tom’s
Supermarket. One of the main competitors of MC Drivemart Grocery is Citimart since
most of the consumers are going there because Citimart offers wholesale and retail
goods to the consumers as well as those people who have small businesses like Sari-
sari stores. Thus, MarkCount DriveMart Grocery aims to provide the consumers the
easiest and the most accessible grocery shopping store in Batangas City since majority
of the consumer exerts time every week. This simply proves that one of the main
activities of Batangueños are shopping.

Company Story

MarkCount DriveMart Grocery has risen from the idea of finding innovated
opportunities in Batangas City. This was invented through writing down ideas out of the
box of limitations by one of the proponents in one of their subject BM 111,
Entrepreneurial Management. It was first an abstract idea that aims only to have a

3
different structure of grocery stores in the market. Out of all the found possible
opportunities of the proponents, Vincent Atup, Joseph Bathan, Elizabeth Brun, Diane
Condez, Ednalyn Cuasay, and Kate De Villa, the unknown proposed grocery store that
offers drive thru was named after combining the two programs of the proponents,
Marketing Management and Accounting Management which resulted to MarkCount
DriveMart Grocery. This solves to the main problem found by the consumers in having a
slow transaction line in cashier sections and giving another option for the consumers
who do not have time to shop grocery items and take orders immediately. As the ideas
of the proponents for MarkCount DriveMart Grocery to be possible, feasibility study was
conducted first before reaching to this point of making business plan as further study
possibly. Thus, hope in MarkCount DriveMart Grocery is burning high for the proponents
to see that this type of firm can become possible in the modern generation and become
a stepping stone for them towards dreaming to be successful entrepreneurs.

The Product

Location

It is found out that the major competitor of the business is Citimart, so it has been
decided to place the location of the grocery store almost near the area of the competitor
but with the assurance that the area will be more accessible to the constumers. The
chosen location will be at 79 Rizal Ave, Poblacion, Batangas City the former Mac Sor
Hotel. With this 2500 sqm lot, the area can accommodate more drive thru customers.

Operation Hours

Store hours will be 7 days a week from 06:00 A.M. until 10:00 P.M. All major credit
cards will be accepted.

Products

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 A product is made of the factors a customer considers in making a purchase. In
MarkCount DriveMart, the product offerings consist of all the grocery items that other
competitors offer. Since the firm is a grocery type of store, the product will be
categorized in many divisions such as sweets, chips, dry goods, laundry, etc. Giving the
target market two options in giving a better service which are walk-in customers who will
visit the physical store and the innovated drive thru for a more convenient service, this
will help in dictating the demand of the products with regards to the brands the business
is providing. Since MarkCount DriveMart is a drive thru business, its customers are
expecting accuracy, speed, value, and quality services. MarkCount DriveMart will make
all of its processes designed for speed and accuracy. This helps to ensure that there is
no wasted time, movement or effort of customers. MarkCount DriveMart will also
implement training and development to train the staff and management in doing a good
service. Table 1.1 shows the list of the categories of products that is available in
MarkCount. Figure 1.1 and 1.2 shows the front view perspective of the store.

Table 1.1
CATEGORY PRODUCT BRAND

Meat and Poultry Products Monterey

Magnolia
Fruits and Vegetables Farm Fresh

Milk and Dairy Products Nestle

Mondelez
MARS
Kraft Foods
Hershey’s
Heinz
Biscuits and Snacks Rebisco
Lemon Square
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 M.Y. San
Monde
Breads and pastries Gardenia
Lemon Square
Monde
Canned Goods Argentina
Purefoods
San Marino
Century Tuna,
Liquors and Beverages San Miguel Products
Coca Cola
Pepsi Products
C2 Products
Magnolia Products
Zesto
Nestle Products

Personal Care Unilever Products

Nivea
Green Cross
Modess
Lactacyd
Celeteque
Rexona
Secret
Laundry soaps and Detergent Surf
Champion
Tide
Ariel
Pride

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 Downy
Frozen Products Purefoods

Magnolia
CDO
Pampanga’s Best
Health and Beauty Belo
Celeteque
Neutrogena
Nivea
Maybelline
Johnson and Johnson
P&G Products
Cleaning Supplies Unilever Philippines products
P&G Products

Figure 1.1 Front View

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 Figure 1.2 Front View

Furthermore, the Drive-thru grocery has multiple product line for it is just a
restructuring of a traditional grocery industry, customers could order by a hotline or a
text line, and pick up in person at a scheduled time. The Drive-thru feature is specifically
designed to serve customers through the window/counter while remaining in their cars,
the same way many fast food chains do.

Process Order Taking

Order Process Taking refers to the steps that the drive mart must take from the
moment they receive the order until the items land in customers’ hands.

There are three options in placing and receiving orders in Markcount DriveMart;

 Option A: Walk-in Process.

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 Step 1: The customer will go to Drivemart to shop and get what they need
just like in other typical grocery store.
Step 2: The customer will get the products and pay to the cashier and
they will be accommodated accordingly.

 Option B: Placing orders thru calls/hotline.

Step 1: There will be designated employees who will accept calls from the
customers.
Step 2: Upon receiving the orders the costumer will be notified for the
availability of the products. As the customer says the order the cashier keys in
the POS the items.
Step 3: The customer will be given a distinct receipt code after the
verification of orders and will be notified for the amount of payment.

 Option C: Mobile app. An order can be placed by logging in to the Markcount

application.

Step 1: Search for the item that the customers will buy.
Step 2: Once they found the item they tap the “Add to cart” sign.
Step 3: Once their orders were finalized, they should click the shopping
cart icon to view the items.
Step 4: Once their order is confirmed, the customer must click the “Check
out” button. Once the order is received by the DriveMart, the bagger will prepare
the product.

For the following perishable items such as fruits, vegetables, fish, meats, and the
like, these will be packed 30 minutes before the agreed pick up time. The fastest
transaction process time for a minimum purchase of 500 Php will be 20 minutes this

9
includes the picking and packing.

Order Releasing Process

 Option A: Walk-in Process.

Step 1: As the customer pays to the cashier, the bagger will prepare their
products by putting it on a shopping bag.

 Option B: Placing orders thru calls/hotline.

Step 1: The employee who accepted the call will notify the customer thru
phone call once the orders were packed.
Step 2: The receipt code will be presented to the cashier before paying.
Step 3: After paying, the customer will receive their receipt and turn to the
back of the store reaching the end part where the baggage counter is located.
Step 4: The customer will present the receipt to the attendant waiting at a
small window beside the baggage counter, after validating the receipt, the
customer can already pick up their orders to the bagger.
 Option C: Mobile App

Step 1: Once the bagger is done preparing the orders, a confirmation of

transaction code thru the app will be placed.
Step 2: The transaction code will be presented to the cashier before
paying.
Step 3: After paying, the customer will receive their receipt and they can
already proceed to the baggage counter for their orders.
Step 4: The customer will present the receipt to the attendant at the
baggage counter, after validating the receipt; the customer can already pick up
their orders to the bagger.
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 The fastest releasing time is 5 minutes.

Figures below shows the layout of the store starting from the interior layout (Figure 2.1),
entrance (Figure 2.2), Window/counter (Figure 2.3), Baggage Counter (Figure 2.4) Exit
Part (Figure 2.5).

Figure 2.1 Interior Layout

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 Figure 2.2 Entrance

Figure 2.3 Window/Counter

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 Figure 2.4 Baggage Counter

Figure 2.5 Exit Part

Inventory Management

MarkCount DriveMart will be using the First in, First out (FIFO) method in its
inventory system. This simply means that the first merchandise purchased (the oldest or
earliest) are the first merchandise to be sold.

A mark up of 50% above cost will be used.

A periodic physical inventory will be done at the same time. Since the business
anticipates that differences might occur between quantity of a material on hand and the
quantity shown on the provided merchandise ledger card. The merchandise ledger
cards show the actual amount or value of the merchandise. At the end of an accounting
period, which in MarkCount's case is a year, all sales operation is halted and the
13
employees count and talky the materials on hand. The operation is resumed after the
inventory is counted and verified. MarkCount will be using a less disrupted procedure
which is the continuous or cycle inventory method. Under this method, only few
materials are counted each day. A schedule is made so that all materials will be
inventoried at least once a year. If detected that an inventory shortage or overage have
occurred, adjustment must be immediately made to reconcile amounts. A computer
system will be used to speed up and simplify the process of taking inventory.

In purchasing merchandise, correct quantities and types of merchandise must be on

hand at the right time so that sales operation will proceed on schedule. The purchasing
committee must assure that merchandise must be purchased at the most favorable
prices, and must also be protected from loss or theft.

Merchandise purchasing procedures

Reorder point is used to determine whether an item has reached a level at which it
should be reordered. MarkCount's reorder point will be computed as follows:

(Daily usage x Lead time) + Safety stock = Reorder Point

Economic order quantity, on the other hand determines the standard quantity to be
ordered. It should reflect the quantity necessary to get the best price while keeping
inventory at an appropriate level to ensure uninterrupted production.

EOQ= √(2 x Annual requirements x cost of an order)/ carrying cost of a single item

To determine the number of order the business will make, the annual requirements
must be divided by the EOQ or the order size.

Market Opportunity

Current Industry Size

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 According to the Business Permits and Licensing Office of Batangas City, there
are 195 registered grocery stores in Batangas City in 2015 and there are newly opened
grocery stores as the years passes by. According to the census, the projected
population for Batangas City, Ibaan, San Jose, and Mabini are estimated to be 361750,
48482, 68517 and 44391 respectively. Majority of the grocery stores operates in 12
hours. Based on the research, the grocery stores that are present in Batangas City are
SM Hypermarket, Citimart, Robinson’s Supermarket (Nuciti), Budget Lane, Puregold,
SDC Coopmart, SM Supermarket, and Tom’s Supermarket. One of the main
competitors of the grocery store is Citimart since most of the consumers are going there
because Citimart offers wholesale and retail goods to the consumers as well as those
people who have small businesses like sari sari stores. According to Survey, 50% of the
consumers go to the grocery stores once a week, 15% twice a week, 30.8% once a
month, 4.2% everyday, showing that the demand for the grocery stores are high at
present. On the other hand, MarkCount is the pioneer in providing a convenience to its
customers with its drive thru feature.

Growth Potential
The proponents have evaluated the future opportunities of the venture that will
help it to become more successful.

Branch Expansion & International Marketing

MarkCount will establish multiple grocery stores in the future and will have a big
contribution in the market which is to lead in this type of business. Likewise, to see the
business itself go beyond the boundaries of Philippines and compete with other firms
globally will prove how this firm can be independent.

Home Delivery & Online Transaction

As there’s a continuous demand of the consumers, giving the consumers an

15
easier transaction by offering home delivery of grocery items for those who are unable
to go to physical stores. Since hotlines are the first medium used in order processing,
taking advantage of technology and using it for widespread scope of business
transaction.

Bigger Brand name

MarkCount aspires to conquer the industry not only in the field of grocery firm but
also to create other firms or offer services in the market using its brand name in the next
generation. It aims to provide more the different needs of the consumers and create a
larger image in the market at the same time.

Market Strategies
Marketing strategies of the Mark Count considers the results of the survey done
from the feasibility study for the firm. The marketing mix is a crucial tool to help
understand what Mark Count Drivemart can offer and how it plans for a successful
product offering. The marketing mix is most commonly executed through the 4 P’s of
marketing: Price, Product, Promotion, and Place.

Product

The product element in the marketing mix is concerned with developing a product
that people are willing to buy. A product must satisfy a customer’s need; otherwise,
people will not want it. Some decisions concerning the product are the size, color,
brand, packaging and brand opinions. A product is made of the factors a customer
considers in making a purchase. In Mark Count Drivemart, the product offerings consist
of all the grocery items that other competitors offer. Since the firm is a grocery type of
store, the product will be categorized in many divisions such as sweets, chips, dry
goods, laundry, etc. Giving the target market two options in giving a better service which
are walk-in customers who will visit the physical store and the innovated drive thru for a
16
more convenient service, this will help in dictating the demand of the products with
regards to the brands the business is providing.

Price

Markcount DriveMart will use market-oriented pricing strategy. This pricing

strategy uses market conditions as basis for setting prices. In general, the company
aims to offer the lowest possible prices for bulk or wholesale purchases, relative to the
prices of other firms in the retail market. In a way, Mark Count Drivemart’s pricing
strategy will also be a modified version of the high-low pricing strategy, which involves
giving discounts to help customers save money. In Mark Count Drivemart’s case, the
discounts are achieved through bulk or wholesale purchases.

Place of Distribution

In every industry, the mantra of a successful retail business is its location.

Place refers to the distribution or the methods and location you use for your products or
services to be easily accessible to the target customers. The product or service dictates
how it should be distributed. It is an advantage to put up a Drivethru mart, since it will be
the first one to operate in the province of Batangas. For the convenience of the
residents of Batangas City, Balete, Ibaan, San Jose, and Mabini. Mark Count Drivemart
will be placed to a location where it will be accessible because it is near the schools,
bus terminal, Batangas port and as well as hospitals. With its 2500 square meter lot, it
can accommodate a lot of people with cars who want convenience when they shop.

Promotion

Markcount DriveMart will promote its products through four main marketing
communications tactics. This element of the marketing mix presents how the firm will
communicate with its target customers. Markcount DriveMart’s planned main promotion

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tactics are as follows, arranged according to significance in the company:
1. Advertisements
a. Social Media such as Facebook
b. Magazine
c. Brochures, Flyers
2. Sales promotion
a. Gift Certificates for the first 100 walk-in and drive thru customers on it’s
first day
b. Offering 20% Discount on convenience fee for the first 3 months from
1pm-3pm
c. Loyalty Cards
3. Personal selling
a. Customer Service Section
b. Receiving Hotline Inquiries
c. Mobile Application inquiries
4. Public Relations
a. Event Sponsorships
b. Scholarship Program in 2020
c. Opening of Livelihood Programs for Mothers in 2021

To create authentic and lasting brand awareness, Markcount DriveMart will focus
on meaningful content and a strong brand personality through its social channels. Other
marketing activities will happen when sales personnel persuade customers to visit and
buy in the grocery store. Mark Count DriveMart will apply public relations to boost its
corporate and brand image. For example, the company will have sustainability
programs for its supply chain, and will give donations to support programs for children,
education, and health and human services.

Industry Analysis

Industry analysis is a market assessment tool used by businesses and analysts

to understand the competitive dynamics of an industry. It helps them get a sense of
what is happening in an industry, degree of competition within the industry, state of

18
competition of the industry with other emerging industries, future prospects of the
industry taking into account technological changes, and the influence of external factors
on the industry.
Having the idea of planning Mark Count Drivemart Grocery, this will help the
consumer to attain the level of convenience they have always wanted in grocery
shopping. It seeks to provide the needs and wants of the consumers that can be found
both in convenience and grocery stores.

Rivalry Among Competitors. This is one the forces that the firm might be
challenging in the workplace. Batangas City has been surrounded by several grocery
stores which are main competitors of Markcount. Being established prior to Mark Count,
the firms already know what strategies and plans should be implemented to achieve a
continuous progress high profitability. It can be predicted that there is a huge chance of
high competition between its competitors such as SM Hypermarket, Puregold,
Shopwise, Budget Lane, etc. One sure advantage of Mark Count to its competitors is its
innovated service to the consumers which has always been resolved since then, easier
and shorter period of item transactions.

Threat of New Entrants. Mark Count Drivemart Grocery as a new firm in the
market has an opportunity to enter the market easily. Being an innovated and redesign
grocery store in Batangas City, it is an advantage for the firm to have a progressive
establishment. However, the presence of new and old competitors are inevitable
because of high competition in the market. Businesses nowadays are showing and
growing everywhere because of the high demand of consumer’s needs and wants. In
line with this, the firm’s existence are supported enough to handle the economic
situation and legal barriers since a study is being done first before undergoing the
business plans. Other requirements like capital and cost size were also part of the
study.

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 Threat of Substitute Products. In this aspect, this refers to the chance of losing
the customers interest in Mark Count Drivermart once there’s an existing firm that offers
the same products at lower prices. Since Mark Count will have two options, walk-in and
drive thru, customers might shift in another store due to the convenience fee included in
their products purchase. Although all of its competitors are offering the same goods, the
prices vary and affects the buying behavior of customer. Thus, threat of substitute
products for Mark Count is high because of its competitors established before its
existence and the chance of losing the interest in the store due to some pricing issues.

Bargaining Power of Supplier. Supplier power has been pretty high in the past
because grocery stores had very few options of where they could get their goods and
had even less of a say of how much to pay for these goods. Mark Count will be starting
to change the balance of power away from the supplier. By being so large and having
the power of making or breaking a product based solely on Mark Count carries it they
can demand certain prices. Another way to combat high supplier power is to introduce
private label brands. Private-label products or services, also known as "phantom
brands", are typically those manufactured or provided by one company for offer under
another company's brand. Private-label goods and services are available in a wide
range of industries from food to cosmetics to web hosting.

Bargaining Power of Buyer. Buyers have bargaining power when they are
strong enough to be able to put collective pressure on the companies producing a
product or a service. Buyer power in the grocery industry is obviously high. This fact can
be directly associated with the ease of substitution and intense rivalry in the industry.
The strongest power that buyers can exert is to lower prices, which in turn impacts the
profit potential. To aid this possible disadvantage of this, Mark Count will include an
Establish Walk Away Prices, it is establishing a minimum price level that will not be

20
crossed no matter what the buyer demand. This will not allow the buyer to keep making
demands as they will understand that a certain level will not be crossed. Though there is
a danger of losing customers here if the product is generic, but if the buyer wants to
keep the relationship going, an agreement may be reached to the benefit of both
parties.

Management

Company Ownership
The company will be owned and managed by the proponents: Elizabeth Brun,
Joseph Emmanuel Bathan, Kate Ann De Villa, Vincent Jayvee Atup, Diana Abigail
Condez and Ednalyn Cuasay.
The management of Mark Count Drivemart has a proven record of
entrepreneurial success and innovative business strategy with extensive knowledge in
the specialty of business. They are in order of:

President of MC
Elizabeth Brun launched Markcount Drivemart who invest in socially and
environmentally responsible business activities. In this role, Eliza, manages the financial
projection of Mark Count Drivemart for three years. Her other work includes the sales
area, including the mutual funds given by other stockholders.

Eliza’s excellence in the field of accounting makes an extensive decision making

when in terms of the financial profitability of the firm. Her dedication to work manifests
the transparency of all the monetary transactions inside the organization.
She took up Bachelor of Science in Accounting Management at University of
Batangas and was also enrolled in Australian Skills Institute which is an international
program that offers an Australian Diploma. As Eliza’s most visible presence within the
community of socially responsible businesses, her contacts and connections help give
21
MC a mark of credibility which is essential for the brand identity of the firm is trying to
build in the market. Eliza’s record of academic achievements helped in making an
effective financial analysis and activities for Mark Count as a store as well as a
corporation.

Chairman of the Board

Joseph Emmanuel Bathan, a Marketing Management graduate at University of
Batangas. He joined several academic and non-academic competitions during his
undergraduate studies and exposed himself in leadership trainings as one of the
executives of Student Government during their term. Being expert in field of marketing,
he was able to produce innovative ideas from creating the business name Mark Count
Drivemart Grocery and propose strategies with an extensive decision making. He has
applied all the knowledge he learned and practice them in the work field Mark Count
Drivemart Inc. He is now currently on the processing of involving himself in another
degree of Business and Entrepreneurial Management to become more flexible and
wiser and making decisions and strategies for the firm.

National Sales Director

Diana Abigail Condez, one of the founders of Mark Count Drivemart Grocery and
has good specialty in accounting and management. Aside from being a graduate of
Accounting Management, her wide experience in running a business become an
advantage for her to be in the position and building relationships to attain efficient
logistic and distribution program. Her skills in making intellectual financial decisions help
the organization be wise in financial aspect such as hand on hand with the president of
Mark Count and its stockholders. In her role as National Sales Director, Diana is
responsible for overseeing all sales and distribution relationships, with particular focus
on providing supplies and supermarket accounts.

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Marketing Director

Vincent Jayvee Atup as one of the owners of Mark Count, works as the head in
marketing department. He will work for all the marketing programs and activities of the
firm. Being a graduate of Marketing Management, he maximizes his skills and
experiences in creating effective marketing projects that will boost up MC in the market.
Since the firm is newly established, he is responsible in increasing the awareness of
Mark Count and give the right branding for the firm itself. Thus, his job is creating the
goodwill of MC in the business industry as well as to the consumers.

Retail Sales Manager

Kate Anne De Ville become a member of Mark Count Drivemart Inc. from her
dedication to become a successful businesswoman. Her determination to run a
business and having all her marketing experiences are the factors that will help her in
managing the grocery store. In her role as Retail Sales Manager, Kate is responsible for
managing all the goods and products that Mark Count offers and keeping the retail
accounts with quality control.

Human Resource Manager

Ednalyn Cuasay being the head in getting the labor force for Mark Count
manages in giving excellent service to the customers. Likewise, she’s in charge for
designating the right people in the right place inside the organization from the middle
management up to the rank and file. In her role as Human Resource Manager,
Ednalyn’s main job is taking in people inside the organizations as employees and
workers who will perform their job with all honesty, dedication, and hard work for the

23
success of Mark Count.

Statement and Aspirations for Social Responsibility

Corporate Social Responsibility has assumed a new meaning in today's

generation, given that it has a great impact in our society. Mark Count Drive Mart's CSR
focuses on the following commitments. The proponents believe that MC will have a
positive impact not only to the consumers as well as to the organization itself. MC
ensures to invest throught organizational trainings to develop the skills of the members
of the organization. Mark Count seeks to provide job opportunities especially to the
Batangueños.

Moreover, Mark Count Drive Mart believes that this venture will benefit to their
target market specially to the moms. This can help in catering their household needs
more convenient and easily. It will help them to become productive everyday since MC
offers a drive thru service for those who are in rush. MC's target market will be able to
shop in a more convinient and easier way.

To the government, Mark Count can contribute by paying the business taxes
imposed to every firm and serves a licensing permit as one of the local ventures
established.

To the economy, having business opportunities to the society will help in

contributing the progress and stability of the Philippine economy. Business ventures are
proof that an economy is existing and growing.

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Financial Statement and Projections

Assumptions
Sales

THE TARGET MARKET OF MARKCOUNT ARE PEOPLE IN BATANGAS CITY.

THE DRIVETHRU FEATURE EXTENDS ITS SERVICE TO ALL PUBLIC
TRANSPORTATION VEHICLES (TRICYCLE, PUJ) AND BUY PASSENGERS NOT
JUST CAR OWNERS. THE NATIONAL STATISTICS OFFICE PROJECTED THAT THE
POPULATION IN BATANGAS CITY , IBAAN, SAN JOSE, AND MABINI ARE
ESTIMATED TO BE 361750, 48482, 68517 AND 44391 RESPECTIVELY. IN THAT
NOTE, IT IS ASSUMED THAT THE AVERAGE PERSON PER FAMILY IN BATANGAS
CITY IS COMPOSED OF 5 PERSONS, A TOTAL OF 104,628 FAMILIES. WITH THE
IMPLEMENTATION OF A COMPREHENSIVE MARKETING STRATEGY, IT IS
EXPECTED THAT 20% OF THES FAMILIES WILL KNOW ABOUT MARKCOUNT, AND
50% OF THAT WILL BUY. CUSTOMERS OFTEN VISIT A GROCERY STORE
ATLEAST ONCE A WEEK AND THEIR AVERAGE MINIMUM PURCHASE IS P500.00.
IN ADDITION TO THAT, IT IS ALSO ANTICIPATED THAT THE SALESWILL
INCREASE BY 5% THROUGH JANUARY- OCTOBER, AND 20% BY NOVEMBER
AND DECEMBER BECAUSE OF THE HOLIDAY SEASON.

For drive thru customers, the required minimum amount of purchase is 500 Php

It is assumed that 2020 merchandise sales will have an increase of 30%, and
50% on 2021.

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Convenience fee

A convenience fee of 35 Php will be charged for a minimum purchase of 500

pesos. An additional amount of 5 Php will be added for every 100 Php overage from the
minimum purchase required.

Convenience fee will increase in the same way the forecasted merchandise sales
increases.

Cost of Merchandise Sold

Cost of Merchandise sold will be computed as, the gross sales divided by 1.VAT
(12%) to get the total cost + mark up and then cost + mark up will be divided by 1.Mark
up (which in our case, the mark up is 50% of cost).

Purchases

Purchases will be computed as the Cost of Merchandise Sold plus Desired

Ending Inventories less Beginning Inventories.

Depreciation Expense

The straight line method of depreciation is used. And the accounts with salvage
value are recorded accordingly.

Operating Expenses

On the first year of operations, it is assumed that each line item* in the operating
expenses section will increase by 5% from January - October and by 20% for November
and December.

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 *except for Depreciation Expense (see computation in the notes to financial
statements) and Advertising Expenses which decrease by 5% monthly from January to
October and increase by 20% from November-December.

Sudden increase on the months of November and December because of the

anticipated higher demand brought by the holiday season.

Investment Opportunity
MarkCount DriveMart is seeking equity investment of P90,000,000.00 in equity
capital to finance the expansion of the store and to open it for franchise.

Financing History

To successfully set up the drive thru grocery, an estimated amount of Php

90,000,000.00 will be needed. It includes the initial capitalization of Php 83,500,000.00
which is composed of the acquisition of land – 25,000,000.00, construction of the
building – 50,000,000.00, obtaining licenses and permits – 500,000.00, marketing
promotion expenses – 2,000,000.00, the cost for start-up inventory – 5,000,000.00, the
cost of purchasing storage hardware and store equipment – 1,000,000.00. The
remaining fund of 6,500,000.00 will be used as the remaining fund of the business. It is
proposed that the incorporators will shoulder 20% of the capitalization requirements and
the other 80% will be arranged through lending institutions.

Exit Strategies
The proponents of MarkCount will exit this endeavor after they have created a
flourishing business that could be sold for a substantial profit and/or as a franchise that
could serve rural communities across the country. It is the owners' intention to run this
business until they are ready to retire.

In the event the proposed plan is not successful the owners will implement

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necessary measures to exit the business endeavor with minimal damage to the owners
and investors just like the usual liquidation process, all equipment and merchandise will
be sold to cover any outstanding debts. Any remaining debt will be paid by the owners
in the form of monthly payments until all debts are paid in full.

The success of the business will be monitored monthly in the first year and
quarterly in subsequent years. The owners are aware that it usually takes new
businesses three years to start turning a profit and that the business could operate at a
loss during that time. The owners will keep in mind evaluating the state of the business,
and make adjustments when possible to keep the business running with a positive cash
flow. If the business exceeds the amount of acceptable losses and is unable to
compensate the owners, the business will begin the process of closing the business and
paying back debt.

Investment Risks

Opening a retail store is not without risk, the proponents will be considering the
following factors and its associated risk.

Product risk. since the flagship of Mark Count is its drive thru feature, the risk of
failure in speed and accuracy is present. Training and supervision will be undergone by
the employees.

Management Risk. The incorporators will also be the major shareholder and the
board of directors, they will be responsible to all business transactions. If either of the
incorporators were unable to continue to play a role in the corporation's progress, the
growth potential of MarkCount might be impaired.

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Competitive Advantage

The Mark Count Drivemart is fast and convenient so it was easier and more
convenient for people wanting to buy their necessary needs through the drive through.
The fact that this makes everything easier because we have taken things to a whole
new level. Mark Count drivemart offers various products that can be found similarly in
other grocery stores. It depends on the number of suppliers that the firm is connected
that offers at the least cost for the consumers. One thing that makes the firm different
from its competitors is the process of ordering the items for drive thru customers which
only requires an oral communication followed by claiming of the purchased goods in the
next station. Moreover, products especially food products are also classified based on
the categories in grocery stores for an easier way of transaction. There will be a
particular convenience fee for every minimum number of purchases that will be charged
on the consumers’ item transactions.

Different and unique the whole idea of a drive through grocery is completely
different to what is already out there, we believe this is a advantage as people are going
to want to test out the idea. It seeks to provide the needs and wants of the consumers
that can be found both in convenience and grocery stores. It has the primary objective
to recalibrate the type of grocery stores as a business opportunity in the market and to
innovate the existing ones in the society that will benefit the firm itself and the
consumers. It gives opportunity in the economic aspect of the nation such as providing
new concept that will refresh the intellects of every person.

Moreover, to aid in the possible disadvantages brought by the bargaining power

of the supplier, MarkCount DriveMart will be starting to change the balance of power
away from the supplier. By being so large and having the power of making or breaking a
product based solely on MarkCount DriveMart carries it they can demand certain prices.

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Another way to combat high supplier power is to introduce private label brands. Private-
label products or services, also known as "phantom brands", are typically those
manufactured or provided by one company for offer under another company's brand.
Private-label goods and services are available in a wide range of industries from food to
cosmetics to web hosting.

A Parting Thought

The Mark Count Drivemart is an innovated grocery store wherein a drive thru is
an option for consumers who are in a rush for buying their necessities. The environment
for the Mark Count Drivemart is expected to change rapidly, since it will become a trend
for most of the consumers in Batangas City. They have consistently built the foundation
for sustainable growth by expanding our business in outside Batangas City. They would
like to expand Mark Count Drivemart by looking for investors who will help in financing
the business where further growth is expected to continue hereafter. Aiming for further
development of the Mark Count Drivemart, they are willing to take on new challenges.
The proponents believe that including directors and employees strive to work together
as one toward the achievement of this goal with our shareholders.

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