Mango-Piocalicious Business Plan

Mango-piocalicious

Business Plan
2020

Prepared by:
Aguilar, Angelica Nicole
Argente, Cyrine Joy
Canete, Eugene
Flores, Sophia Mari
Jungay, Lyn-Lyn
Lahaji, Jaica
Landicho, Zyra
Mendoza, Abegail
Valencia, Baby Heart

Mango-piocalicous 1
Business Plan
Table of Contents
Executive Summary 2
Company Description 3
Market Description 4
Organization and Management 5
Marketing and Sales Strategies 6
Service and/or Product Line 7
Funding Requirements 8
Financials 9

March 10, 2020 1

Mango-piocalicous 2
Business Plan
Executive Summary
This is the business plan for Mango-piocalicious, It is a locally owned
frozen dessert outlet that will be positioned as an international franchise
through our creative approach to the company's image and detail
presentation. Mango-piocalicious will provide a combination of
excellent dessert at value pricing, with fun packaging and atmosphere.
This is the answer to an increasing demand for frozen dessert and
beverage.

A market research was conducted in order to know what our target
customer’s preference is. This will help us to understand our customer
and their preference based on findings about what our customers
really want and need, set a price a customer is willing to pay, decide
what kind of advertising that our customer wants in order to know the
product, make decisions for the business, improve our product
according to their wants.

Our business currently has 9 partners. They will contribute ₱6,666.67
each and will have active roles in operations. We will also have two
employees.

We need ₱115,000 to start the business. This will be acquired through
debt and equity financing. ₱45,000 will be through long-term loans,
₱60,000 through current partner contributions, and ₱50,000 will be
from an external investor.

Our break-even point is estimated to be at 860 units.

March 10, 2020 2

Mango-piocalicous 3
Business Plan
Company Description
Mango-piocalicious is a locally owned frozen dessert outlet. The
product is made up of real mango, small tapioca pearls ,and a secret
mixture of milk that makes the product unique than others. Also, you
can add a sinker of your choice. The sinkers that we offer are crystals,
fruit bits, jelly, and crushed graham that can make your mango
tapioca flavorsome. Our outlet also provides excellent and friendly
customer service to support the ambience of a fun, energetic and
youthful lifestyle. W
e will locate or build our stall in Lipa City.

Address: 1962 J.P. Laurel National Highway, Mataas na Lupa,
4217, Batangas
Contact Nos: 0930-144-8007; 774-9962

Our mission is to provide customers with quality and affordable
products that meet the desire and needs in the market.

Our vision is to be one of the leading frozen desserts industries in the
country, through a strong franchise system and great people, serving
the best frozen dessert.

The idea behind our business was formed when we noticed that there
are only a few businesses that offer frozen desserts. Also, students'
reason for absence is Inflammatory Bowel Disease (IBD) due to weak
immune systems. We decided to bridge the gap and thought of creating
a product that has highly nutritional value and is delicious at the same
time. We did our research and we found out that mango fruit contains
more vitamins than any fruit. Mango fruit has a benefit of Vitamin C
that can boost the immune system that can help students to work well
in school. Mangoes are rich in beta-carotene that helps in the
production of Vitamin A.

March 10, 2020 3

Mango-piocalicous 4
Business Plan

We belong in the food service industry. The food service industry is
composed of all forms of food retail. This includes fast-food chains,
food kiosks, cafes, bars, take-out and delivery stores, and full-service
restaurants. Our target customers are people who are youngsters
(mostly students), public commuters, and drivers. That is why we build
our stall near the school.

March 10, 2020 4

Mango-piocalicous 5
Business Plan
Market Description
The market survey we’ve gathered serves as our learning information
through decision making for the improvement to the operation of our
business.

To better understand our target market, we conducted a market survey
containing two pre-qualifying questions and twelve survey questions:

Pre-Qualifying Questions:
A. Do you like dessert?
B. If NO, would you like to try our Mango-piocalicious?

Survey Questions:
1. How much is your daily allowance?
2. How much is your budget for buying a dessert?
3. What kind of dessert do you usually buy?
4. Are you satisfied with the food/desserts served in our cafeteria
5. What are the factors you consider in buying a dessert?
6. How important is it to you to buy healthy food/ dessert
7. Mango-piocalicious is a dessert made with real mango, milk,
and yummy ad-ons of your choice. Do you like to purchase this
dessert?
8. How much do you prefer to buy our product?
9. What ad-ons do you prefer?
10. What advertisement, most of the time, catches your attention?
11. If you want to know about our product which is
Mango-piocalicious, where do you want to see the information?
12. On scale 0-10, how likely do you want to recommend our product
to your friends or classmates based on our description?

March 10, 2020 5

Mango-piocalicous 6
Business Plan
These are the important points we discovered through survey:
Serving the students a dessert is our

primary product because we want the
student to improve and boost their
immune system as well as lack of desserts.
There are 96.58% of respondents who like to
eat desserts. This gives a conclusion that
the product will work because most of the
respondents preferred dessert.
Figure 1: This is the result of the

question “Do you like desserts?”.

Among the following desserts, most
of the respondents choose “Frozen
Dessert” as the kind of dessert they
usually buy. 113 out of 263
respondent preferred frozen dessert.

Figure 2: This is the result of the question
“What kind of dessert do you usually buy?”.

Figure 3: This is the result of the question “What factors do you consider in buying a dessert?”.

March 10, 2020 6

Mango-piocalicous 7
Business Plan
Knowing the factors of food products that the customer will consider
in buying food product is important because the business will be able
to know what to improve in selling the product and to the product
itself. The top 4 factors that the customer considers in buying a food
product are: taste of the product, affordability of the product’s price, the
product’s cleanliness, and it’s appearance.

93.16% of the 263 respondents said that
they would like to purchase our
product which is Mango-piocalicious.
At this part, we are able to know if the
product will be able to have sales in
the future.

“Do you like to purchase our dessert?”.

We must consider selling our
product with the prefered
price of our respondents. The
100 out of 263 respondents
would like to buy our product
for Php 35-26. This portion
proves that we must sell our
product in the price range of
Php 35-26.

“How much do you prefer to buy our product?”.

March 10, 2020 7

Mango-piocalicous 8
Business Plan

Among the 5 choices of add-ons, 132 respondents ranked “Pearls” first
as the add-ons they prefer the most. So, we include tapioca pearls in
the product proper and the remaining add-ons to their choices.

CRUSHED
PEARLS NATA JELLY FRUIT BITS
GRAHAM
132 40 12 18 61
1st 3rd 5th 4th 2nd
Figure 6: This is the result of the question “What add-ons do you prefer?”.

To make the product known
to the public, we ask the
respondents what
communication channel
they want to see the
information of the product.
The top 3 advertisement
channels they choose are:
Social Media, Flyers, and
Word of Mouth. This will
Figure 7: This is the result of the question “Where do you help us a lot to advertise our
want to see the information about Mango-piocalicious?”. p
roduct to the customers.

When it comes to direct competitors, there is only one. Other
businesses have too many product lines or focus on a different target
market, which is why we only identified this one.

March 10, 2020 8

Mango-piocalicous 9
Business Plan

TeaHub

Tea Hub Lipa is a cafe that serves freshly steeped teas of different kinds
that suit best to their customers taste. It is located at Big Ben Complex
Lipa, Batangas. This Cafe serves Milk Tea specialties, Fruit Teas, Shirota
Mix, and different kinds of tea beverages. Milk Tea is a beverage which
comes with milk and tea. It can be as simple as a splash of milk in a
hot cup of tea, It can also be a drink with different flavours.

PROS:
● Customers keep on coming back because of the ambiance.
● Good at accommodating customers.
● Affordability of the price.

CONS:
● It can cause anxiety, insomnia and some sleep issues because of
the combination of tea, milk and sugar.
● It can also cause you low immune system for drinking too much
caffeine and chemicals like theophylline for it can cause extreme
constipation.
● Combining Milk and Tea together can hinder the absorption of
essential nutrients in the body.

After analyzing the target market and our direct competitors, we found
out that our competitive advantage is high nutritional value of the
main ingredient of our product which is the Mango Fruit. Their
product is not as nutritional as our product and can put your health in
a high risk situation. However, we will need to focus on our public
presence. So, we need to advertise our product to the public and make
sure that our product is within the price range of our customers.

March 10, 2020 9

Mango-piocalicous 10
Business Plan
Organization and Management

Our organization is a general partnership. We currently have 9
partners, each one filling an important role in the organization. We
plan on having more dormant partners in our business to help with
the startup costs.

Active Partners:

1. Sophia Mari Flores
Role: Manager
Description: The role of a Business Manager is to supervise and
lead a company's operations and employees. They perform a
range of tasks to ensure company productivity and efficiency
including implementing business strategies, evaluating company
performances, and supervising employees.

2. Baby Heart Valencia
Role: Accountant
Description: An accountant performs financial functions related
to the collection, accuracy, recording, analysis and presentation
of a business, organization or company's financial operations.

3. Abegail Mendoza
Role: Merchandiser
Description: Merchandisers are responsible for product
appearance and supply in various stores throughout their
designated geographic area. By working closely with both
suppliers and manufacturers, they make certain that the
promotion of specific products and services will increase sales
over a period of time.

March 10, 2020 10

Business Plan

4. Jaica Lahaji
Role: Financial Analyst
Description: A financial analyst is someone who makes business
recommendations for an organization based on analyses they
carry out on factors like market trends, the financial status of a
company (or companies) and the predicted outcomes of a certain
type of deal.

5. Zyra Landicho
Role: Production Staff
Description: Production Staff vary depending on which sector
they work in but could include anything from feeding materials
into machinery, assembling items, packaging items or storing
items.

6. Angelica Nicole Aguilar
Role: Production Staff
Description: Production Staff vary depending on which sector
they work in but could include anything from feeding materials
into machinery, assembling items, packaging items or storing
items.

7. Lyn-Lyn Jungay
Role: Customer Relationship Officer
Description: Customer Relationship Officer assists the needs of
customers. These individuals are usually assigned with
responding to the concerns and feedback of customers. They
communicate any problems or concerns with other departments
in the company and sometimes conduct investigations.

March 10, 2020 11

Business Plan

8. Cyrine Joy Argente
Role: Research and Development Officer
Description: A research and development (R&D) manager
performs a number of highly important roles within an
organization. They are responsible for research, planning, and
implementing new programs and protocols into their company
or organization and overseeing the development of new products.

9. Eugene Gabrielle Cañete
Role: Advertiser
Description: Advertiser duties include conducting market
research, collaborating with the sales and design teams to create
targeted ad campaigns, reviewing multimedia ads to ensure
consistent brand voice, and monitoring the performance of ad
campaigns to measure return on investment and to inform
future marketing.

We have currently 9 partners in doing the business and we are
satisfied among our partnership. We are receiving an equal share
since it depends on our percentage contribution.

Floor Plan

March 10, 2020 12

Business Plan
This is a flowchart of the main process of our business:
Figure 8: Process Map of the business

March 10, 2020 13

Business Plan
Marketing Strategies
We will sell or market our product in our stall located at Mataas na
Kahoy, Lipa City near De La Salle Lipa. We will build our staff in the
leadership of our manager. As per the respondent of our survey, they
choose words of mouth and social media to get information about our
product.
Figure 9: This is the result of the question “Where do you want to see the information about
Mango-piocalicious?”.

Customers are into listening or hearing a product through verbal
conversation that will give information and actual reaction of
someone who already experience buying the product. It is a great way
to persuade customers with such catchy words towards buying a
particular product . It will be an effective way to the people passing by
our stall.

Aside from selling through our stall, we will need to create social
media pages. Facebook and Instagram are our primary targets in
getting our brand known. Facebook advertising is relatively affordable
and since our target market is students who are youngsters.

March 10, 2020 14

Business Plan
Youngsters are the most active in the social media community, it is the
best option for us at the moment. We will post advertisements in the
business’ social media accounts on every social media platform.
Service and/or Product Line

Our main product is Mango Tapioca. It is a dessert made of mango,
small tapioca pearls and a secret mixture of milk that makes the
product unique than others. Also, you can add a sinker of your choice.
The sinkers that we offer are crystals, fruit bits, jelly, and crushed
graham that can make your mango tapioca flavorsome.

Serving the students a dessert is our primary product because we want
the student to improve and boost their immune system as well as lack
of desserts. And based on our market research, there are 96.58% of
respondents who like to eat desserts. Also, 93.16% of the 263
respondents said that they would like to purchase our product which is
Mango-piocalicious. At this part, we are able to know if the product
will be able to have sales in the future.

Figure10: Mango Tapioca will be produced with three ingredients:
secret mixture of milk, fresh mango, and tapioca pearls.

March 10, 2020 15

Business Plan

Figure 11: Different sinkers that can make your Mango Tapioca flavorsome.
Pricing
To determine our most profitable price point, we differentiated our
market survey questionnaires. Out of the 263 we distributed, 38.02%
had the prices set at ₱35- ₱26 , 24.33% at ₱25- ₱20 , 36.12% at ₱21-₱15,
and 1.52% for the others. The question was “How much do you prefer
for buying our product?”

Mango Tapioca
Price Point 35 25 15
Yes 100 64 95
Estimated Sales 3500 1600 1425

Figure 12: Mango Tapioca Price Point

Mango Tapioca with sinkers
Price Point 40 30 20
Yes 100 64 95
Estimated Sales 4000 1920 1900

Figure 13: Mango Tapioca with sinkers Price Point

While the number of interested customers increased as the price point
increased, the profit margin for the ₱35 price point is still the most
optimal one. We decided to price our Mango Tapioca ₱35, and add ₱5
for every sinker of their choice.

March 10, 2020 16

Business Plan

Funding Requirements
Startup Cost
We will need to gather funds for the following startup costs. This is not
included in our break-even point computation.

Startup Cost
Licenses and Permits ₱10,000.00
Furniture and Fixtures ₱13,079.00
Equipments ₱56,985.00
Promotional Materials ₱5,500.00
TOTAL ₱85,564.00

Licenses & Permits
Mayor’s Permit Building Permit
Business Permit Locational Clearance
DOLE Health Clearance
DOH Fire Clearance
Sanitary Permit Security and Exchange Commission
Food Service License Environmental Permit
BIR Public Liability Insurance
Barangay Clearance Registration for Bureau of Food & Drug

March 10, 2020 17

Business Plan

Furnitures & Fixtures
Quantity Price Total Price
Cabinet (I Home) 1 Php 7,999 Php 7,999
Chairs (Wooden Bar Stool) 4 Php 1,270 Php 5,080
TOTAL Php 13,079

Equipments
Quantity Price Total Price
Refrigerator (Samsung) 1 Php 17,995 Php 17,995
POS Machine 1 Php 35,000 Php 35,000
Hand Mixer (Sunbeam) 2 Php 1,995 Php 3,990
TOTAL Php 56,985

Aside from this, we will need ₱30,000 for cash expenditures in the first
month.

Figure: The required ₱155,000 will be acquired through debt and equity financing. A cash
investment of ₱50,000 is necessary to start the business.

March 10, 2020 18

Business Plan

Return On Investment
We will have a profit-sharing plan in place for the benefit of the
business’ partners and investors. At the end of each year, 50% of
retained earnings will be distributed according to contribution
percentage. Based on our initial plans, 58.82% of the profit sharing fund
will go to the external investor while each of the seven active partners
will receive 5.88% of the fund.

N et P rof it − Investment Cost
Return on Investment = Investment Cost * 100
Based on our financial projections, the profit sharing fund is estimated
to be at ₱96,536.94. Since the contribution percentage of the external
investor is 58.82%, ₱56,783.03 will go to him/her.

56,783.03 − 20,000
Return on Investment = 20,000 * 100
36,783.03
Return on Investment = 20,000 * 100
Return on Investment = 1.839 * 100
Return on Investment = 183.9%

March 10, 2020 19

Business Plan
Financials

Our key assumption is that 70% of our orders will be mango tapioca
with sinkers and that this rate will increase by 5% each month up to a
maximum of 80%. We based our sales quantities on the amount we
can produce and the amount of cups we sold during the trade fair.

Break Even Analysis
Our sales mix will be 10% for original mango tapioca, 15% for mango
tapioca with single sinker, 20% for mango tapioca with double sinkers,
and 25% for mango tapioca with triple sinkers, lastly, 30% for mango
tapioca with all sinkers. To determine the break even point for our
business, we identified the following:

Expenses
Rent Expense ₱3,000.00
Salaries Expense ₱21,800.00
Utilities Expense ₱3,500.00
TOTAL FIXED EXPENSES ₱28,300.00

Price Variable Cost
Original Mango Tapioca Php 35 10% Mango Tapioca Php20 10%
With single sinker Php 40 15% With single sinker Php23 15%
With double sinker Php 45 20% With double sinker Php26 20%
With triple sinker Php 50 25% With triple sinker Php29 25%
With four sinker Php 55 30% With four sinker Php32 30%
Weighted Average Weighted Average
Selling Price Php 39.80 Selling Price Php 26
Weighted Contribution Margin per unit Php 32.90

March 10, 2020 20

Business Plan

T otal F ixed Expenses
Break Even Point= W eighted Average Contribution M argin P er U nit
Break Even Point= 28300
32.90

Break Even Point= 860.18 / 860 units

Break Even Point
Products
In Units In Pesos
Mango Tapioca 10% 86 ₱3,010.00
With single sinker 15% 129 ₱5,160.00
With double sinker 20% 172 ₱7,740.00
With triple sinker 25% 215 ₱10,750.00
With four sinker 30% 258 ₱14,190.00
Weighted Average Selling Price 10% 860 ₱40,850.00

Based on our computation, we will need to sell 795 units of our
products in order to break even. This will take us less than one month
if we follow a -hour work week.

Hours to make
Product No. of units Total Hours
1 unit
Mango Tapioca 0.5 86 43
With single sinker 1 129 129
With double sinker 1.5 172 258
With triple sinker 1.5 215 322.5
With four sinker 2 258 516

Total Man Hours of Production required 1268.5
No. of Production Employees 4
Manhours of Production per Week 80
Man Hours Production per month 1280
Figure 12: A 35-hour work week means that each production employee spends 5 hours a day
for 30 days. This gives us 280 manhours per month, which is well over the required 664.5 to
break even.

March 10, 2020 21

Business Plan
Year 1 Financial Projections

March 10, 2020 22

Business Plan

Year 1 Financial Projections (cont’d)

March 10, 2020 23

Business Plan


March 10, 2020 24

Business Plan

March 10, 2020 25

Mango-Piocalicious Business Plan

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Serving the students a dessert is our

​Figure 1: This is the result of the

Organization and Management

This is a flowchart of the main process of our business:

​Figure 8: Process Map of the business

Service and/or Product Line

Estimated Sales 3500 1600 1425

Estimated Sales 4000 1920 1900

Mayor’s Permit Building Permit

Business Permit Locational Clearance

DOLE Health Clearance

DOH Fire Clearance

Sanitary Permit Security and Exchange Commission

Food Service License Environmental Permit

BIR Public Liability Insurance

Barangay Clearance Registration for Bureau of Food & Drug

Quantity Price Total Price

Cabinet (I Home) 1 Php 7,999 Php 7,999

Chairs (Wooden Bar Stool) 4 Php 1,270 Php 5,080

TOTAL Php 13,079

Quantity Price Total Price

Refrigerator (Samsung) 1 Php 17,995 Php 17,995

POS Machine 1 Php 35,000 Php 35,000

Hand Mixer (Sunbeam) 2 Php 1,995 Php 3,990

TOTAL Php 56,985

TOTAL FIXED EXPENSES ₱28,300.00

Mango Tapioca 0.5 86 43

With single sinker 1 129 129

With double sinker 1.5 172 258

With triple sinker 1.5 215 322.5

With four sinker 2 258 516

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Figure 1: This is the result of the

Figure 8: Process Map of the business