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Tiffany's Confections Business Plan Proposal

business plan proposal

Tiffany Yapjoco

on 3 October 2012

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Transcript of Tiffany's Confections Business Plan Proposal

Tiffany’s Homemade Confections will be a home-based bakery that will supply a small concessionaire stand at a new branch of Fix and Mix Bakers in Bacolod City. The business will be the pastry and dessert leg to the fresh breads sold by Fix and Mix. The proponent aims to incorporate native (to Asia and the Philippines) flavors to American and European pastries to encourage the market to try new combinations without going out of their comfort zone since one of the components would have familiar local ingredients. The proponent is a graduate of Bachelor of Science in
Hospitality Management and is equipped with the basic
knowledge of food handling and preparation. The proponent
has also been a home baker since she was a child. For the last
two years, she has been to various classes, demos and
workshops that enhance her knowledge and skill the
preparation and production of baked pastries and desserts. With the business concept of using locally
available products and the proponent’s competency and continual learning, the
enterprise aims to help local producers have
their own local niche instead of shipping
their produce elsewhere. Most pastry shops and dessert places in
Bacolod have run-of-the-mill offerings like chocolate cakes, ice cream cakes, pies and
small desserts. Most of their innovative
creations only tweak a few originals like the Cathedral Window, one big competitor
made it into a gelatinous cheesecake.
Another popular pastry shop made a
“Black Velvet” cake, obviously inspired
by the current market favorite Red Velvet. The proponent aims to offer, aside from the usual and common cakes, pies and desserts, European and American-inspired pastries and desserts that incorporate local flavors and ingredients that are modified to suit the Filipinos’ taste buds. This concept makes use of whatever ingredients are available, especially those that are native to the area and those in season. The proponent will also be collaborating with Fix and Mix Bakers on a new concept for their bakery. The proponent will be supplying a small concessionaire stand in the proposed Bacolod branch of the said bakery so they can both cater to a bigger market. This proposal of the owner of the said bakery would want the proponent to pay only a portion of the rent. The proponent’s target market are mostly families and customers who are fond of giving and receiving freshly baked goods as well as those individuals who are into trying new things. Based on feedback from previous customers on certain products, young and old alike have expressed their approval and positive responses to the proponent’s products. The assumed target market age bracket for these products are between 10-55 years old. Targeted sectors are students, entrepreneurs, family business men and women, office managers and supervisors as well as some of the working class. Population x Per Capita Consumption = Projected Demand
102, 364 x 30% =30,709.2 per month * population is based on May 2010 population statistics from http://www.census.gov.ph/data/census2010/index.html
* per capita consumption is based on the researcher’s assumption The proponent’s target market is
class A and B. With this in mind, the
proponent assumption is that the
target market is about 20% of the total population of Bacolod (511,820) which is estimated to be 102, 364. The proponent assumes an average gross monthly sale of P30,000.00 The proponent would like to assume daily gross sales of P1,000.00. The sale would come from various orders through online marketing as well as a daily portion derived from per piece retail of the products through the concession stand at the Fix and Mix Bakers branch in Bacolod. The proponent aims to perfect hand and homemade recipes that are crowd favorites, as well as introduce to the market new and exciting flavor fusions that make use of familiar local flavors. The proponent looks forward to selling freshly baked products as much as possible to the customers and concessionaires. This would ensure maximum quality of the product upon delivery. The proponent believes that word of mouth is one form of advertising that can make or break your brand. The researcher would start selling through order-taking by having the customer accomplish an online order form for them to place their orders. This would make use of the growing trend of entrepreneurs employing e-commerce in their business activities. The proponent would make use of marketing opportunities such as trade shows, events and food markets in order to give potential customers a glimpse of what we can offer which include free tastings as well as marked down prices. This will also give the researcher a chance to talk, negotiate and get feedback from potential customers about her product offerings. The proponent believes that in setting a standard, customers are willing to pay a good price as long as their purchases are of good quality. This is what the owner would like to employ in her pricing strategy. She would also take into consideration the competitors’ prices, although this would only apply to similar products that are common and ordinarily being sold in dessert and pastry shops. The proponent is a strong believer in word of mouth advertising. This does not go to show that the owner does not believe in traditional advertising such as print or multimedia ads, and she plans to keep the expense to a minimum and concentrate more on promotional activities that would give potential consumers a first-hand experience of the products and customer service the business has to offer through trade shows, food markets and the like. The proponent would like to give more importance to promotions and is expected to increase 10% the every year. The proponent plans to start out with a home-based bakery in which the creation of all finished products will be handled by the proponent herself. In line with this, tedious tasks such as measuring dry ingredients such as flour, baking powder and spices can be done before hand and stored in a zip lock bag ready for use when a certain recipe calls for that pre-mix. Production Plan Promotion Strategy Distribution Strategy Projected Sales Product Strategy 2.1Topping/Glaze/Frosting Storage Work In Process Inventory Raw Materials Final Baking Start 1.1Mixing/Processing 1.2 Forming/Kneading/Molding 2.2 Batter 2.3 Custard/Filling 2.4 Crust 2.5 Dough Initial Baking Cooling Frosting/Glaze The proponent’s business concept is in the line of pastry making. This means the main raw materials would be flour, sugar and eggs. Other raw materials that will be used are baking powder, baking soda, glucose, corn syrup, spices such as cinnamon, nutmeg, cloves and allspice as well as nuts such as pili. The proponent would also like to make use of locally available ingredients such as kalamunding (calamansi), mascovado sugar, molasses, carrot, and banana as these are less expensive to source as well as promote the sustainability of the local economy. The proponent is scouting for suppliers within the Bacolod area such as Grand Prosperity, La Filipina Uy Gonco, Vicor, Chefs and Bakers as well as vendors in the local wet market. Production Plan For a small-scale home bakery, the proponent plans to start with one oven, food processor and stand mixer. The proprietor has an existing gas oven worth P16,000, a small food processor worth P3,000 and a stand mixer worth P19,500. The proponent also has a small refrigerator worth P17,000 to store perishable supplies such as butter, eggs and nuts as well as work-in-process inventory that helps make the production process faster. The proponent already has existing baking tools such as baking pans and tins, muffin and cupcake pans, baking sheets, mixing bowls, sifters, cutters, rubber scrapers, spatulas, measuring materials, weighing scales and wire whisks which would amount to roughly P10,000. Ovens are generally easy to maintain and clean and last a very long time without being repaired if used correctly. A stand mixer from a reputable brand is also a good long term investment. The proponent plans on buying additional flat beater and wire whip attachments (P1000 and P1,500 respectively) as well as an additional stainless steel bowl (P3,000) for when there are bulk orders so that the proponent is not burdened with the hassle of washing and drying the existing bowls and attachments. The proponent plans on making use of the “dirty kitchen” which is located outside of the house but adjacent to the main kitchen since majority of the cooking for the household is done inside the main kitchen. The “dirty kitchen” will be turned into the proponent’s workshop, so it will be easier to monitor the overhead expenses since it would have a different meter for electricity. The proponent will start off the home bakery business doing all tasks by herself. In the event that there will be bulk orders especially during the holiday season, she shall employ part time workers who will help in wash the dishes and other tedious and time consuming tasks such as chopping and grating ingredients as well as taking away the skins from nuts and extracting juices from fruit. It would help the proponent to concentrate on other important tasks that directly affect the finished product such as measuring and folding in of ingredients. The proponent plans to pay the part time worker P40.00 an hour which is about 16% more than the minimum wage per hour.
Kalamunding Bars

Raw materials P 52.39
Direct labor 20.00
Overhead expenses 7.61
Total P80.00

Mascovado Bars

Raw materials P 65.29
Direct labor20.00
Overhead expenses 40.73
Total P126.00

Pili Nut Bars

Raw materials P 88.38
Direct labor 25.00
Overhead expenses 22.62
Total P136.00

Carrot Cupcakes

Raw materials P 76.86
Direct labor 35.00
Overhead expenses 38.14
Total P150.00

Banana Chocolate Chip Cupcakes

Raw materials P 31.69
Direct labor 20.00
Overhead expenses 20.31
Total P 72.00

Molasses Crinkles

Raw materials P 25.39
Direct labor 10.00
Overhead expenses 6.61
Total P 42.00

Oatmeal Pili Lace Cookies

Raw materials P 70.83
Direct labor10.00
Overhead expenses 9.17
Total P 90.00 The business name already gives the consumers the idea that it is owned by “Tiffany”. The proponent believes that she may be able to make a name for herself by how she creates new desserts and pastries as well as how she would manage a business on her own that is separate from her family’s business. Sole Proprietorship The proponent chose this name because she would like to promote the business in its own brand that the products are all homemade thus giving the customers the notion that it is “made with love”. Since the production is small scale, the proponent wants to relay to her customers that each product that comes out of her kitchen is meticulously made and quality assured. Tiffany's Homemade Confections The proponent is already a degree holder of Bachelor of Science in Hospitality Management that provides her with the basics in food and beverage preparation as well as restaurant operations. The proponent also has work experience in customer service as well as extensive knowledge in beverage especially coffee and tea preparation. The proponent also has attended various workshops and classes on the preparation of various desserts, cakes and pastries in different prominent cooking schools in Manila. Owner/Chief Baker On-call Dishwasher On-call
Helper Pre-operating Expenses

Registration with the DTI (P) 515.00
Barangay Clearance(P) 1,500.00
Mayor’s/Business Permit(P) 5.00
Tax Registration Number(P) 500.00
Total Pre-operating Expense (P) 2,520.00 The proponent
has existing basic baking
equipment that she will continue
to use for the business. This includes
the gas oven, stand mixer with its attachments
and components and food processor. Previously
stated, the proponent will incur about P2520.00
in pre-operating expenses.

Since the business is a home-based bakery and is only in the
start-up stage, the proponent would like to assume a working capital
of P20,000 to cover the costs of raw materials, packaging and overhead
costs such as electricity and water bills since the proponent will no longer
be spending for machineries and equipment because it is already available to her. Capital Requirements Income Statement Balance Sheet Organizational Chart Capability Profile
Full transcript