CHAPTER I

BACKGROUND OF BUSINESS PLAN

Introduction

Filipinos are certified food lovers. Anyone who has visited the Philippines knows

how passionate Filipinos are about food. Food is more than just a source of nutrition. It

is an important element of their culture, community, and celebration, which they enjoy

sharing with anybody who is willing to participate.

Snack foods are commonly foods that are eaten between main meals or in the

words of Webster’s definition provided in the year 1757: ‘a light meal eaten between

regular meals. According to Gourmet Sleuth (2013), churros are developed by the

Spanish shepherds, the plain flour and water was sprinkled to the hot oil in a frying pan

then fry until it become slightly golden brown and crispy. According to food industry

market research firm Data essential, churros are a hot item with foodservice operators.

Churros are pieces of fried dough coated with cinnamon and sugar, a common street

food in Spanish and Latin American cultures that has gained popularity in America in

the past decade. Churros is a fried dough pastry, served warm and crispy and is usually

dipped in chocolate or milk coffee. It is a popular snack at fairs and festivals because of

their long, thin shape, which makes them easier to consume than, say, wide round

doughnuts. They may also be available in bite-size pieces, making them easier to

consume in one bite.

The proponents’ value differentiation and uniqueness, particularly when it comes to

the businesses or products they are creating or will offer in the market. Introducing

something new to the market may be dangerous, but the proponents are willing to take

the risk to achieve the success they have been seeking throughout this course.

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 Churros are a well-loved snack and has a very delicious taste. It brings friends and

family together, satisfy our cravings for sweet things. However, some people find it

boring for some reasons:  First, they find it to plain to taste. Second, it is lack of

nutritional value on which they find it unhealthy for them.

The proponents of the current claims consider a solution to the existing problem,

but not in the traditional sense, because they feel that dealing with crises in the twenty-

first century requires creativity. Therefore, the proponents came up with the idea of fruit-

flavored churro, Fruity N’ Crunchy Churro were originated in Batangas State University.

The proponents want to offer fruit-flavored churro to the people who loves sweets and

unconscious with their health. 

Background of the Business Plan

Fruity N’ Crunchy Churro will set up a stall where customers may buy and enjoy the

products and services it provides. The establishment will have a working area for the

staff and employees, such as a kitchen where the product is made, and a counter or

cashier area where all transactions are completed.

The proponents will offer a fruit-flavored churro as their product. The product

promises to provide an exceptional churros experience to both churros lovers and

people who are not familiar with it.  It will let consumers taste innovation where they can

have nutritious fruit-flavored churros that they can enjoy and eat in any possible way

they want. Fruity N’ Crunchy Churro will offer some fruity flavors in their churros namely

mango, banana, apple, avocado. Other than that, we have also dip for it like chocolate,

cheese, caramel, vanilla, and honey. By putting these varieties of mouth-watering

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flavors, the proponents would like to convince people to eat fruity and nutritious churros

as their snacks. Fruity N’ Crunchy Churro will deviate from the traditional churros

business model. It will provide a new touch on churros that consumers have never seen

or tasted before.

Objective of the Study

The proposed business is guided by the following objectives.
 To create new flavored Churros variety 

 To provide friendly and welcoming atmosphere to business location 

 To impart value of money and gain profit.

 To promote the business management and skills of the staff.

 To show the production, quality of fulfillment of the product.

Scope and Limitation of the Study

This study is primarily focused on business process and description of variety of

Fruity Churros that has perception to get interest of the buyers and costumers. This will

be based on the management, marketing, respondents, and financial aspect of the

business. The product will be disseminated through direct selling and orders are also

accepted from the customers within in Batangas city from those who are willing to

purchase our product.

This proposed business gives consumer product which is affordable with the

same product quality and value of sold Fruity Churros price.

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Definition of Terms

Churros are developed by the Spanish shepherds; the plain flour and water was

sprinkled to the hot oil in a frying pan then fry until it become slightly golden brown and

crispy Gourmet Sleuth (2013). In this study it is the core subject.

Proponents is a person who puts forward a proposition or proposal. In this study it

pertains to the people who proposed the idea.

Respondents are those persons who have been invited to participate in a particular

study and have taken part in the study (Given, 2008). In this study it is the source of

data needed.

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 Chapter II
MARKETING PLAN

Market research is a systematic process of collecting, analyzing, and interpreting

information. The information could be about a target market, consumers, competitors,

and the industry. This is the foundation of any successful company. The research has

several different purposes – from identifying a new market to launching a new business.

Objective of the Study

The proposed business is guided by the following objectives.

 To create new flavored Churros variety 

 To provide friendly and welcoming atmosphere to business location 

 To impart value of money and gain profit.

 To promote the business management and skills of the staff.

 To show the production, quality of fulfillment of the product.

Methodology

This chapter includes research design, respondents of the study, data gathering

instrument, data gathering procedure, and statistical treatment of data.

The design of this study is descriptive research to determine whether Fruity N’

Crunchy Churro's fruit flavored churros will be appealing to customers in Batangas City.

Calderon (2006), defined descriptive research as a purposive process of gathering,

analyzing, classifying, and tabulating data about prevailing conditions, practices,

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processes, trends, and cause-effect relationships and then making adequate and

accurate interpretation about such data with or without or sometimes. Furthermore, this

method ascertains the prevailing conditions of facts in a group under study, yielding

either qualitative or quantitative, or both, descriptions of the group's general

characteristics as results.

Survey questionnaire will be conducted to the target participants of this study. It

consists of basic demographics such as age, gender, location, the amount they are

willing to spend on buying churros, their familiarity with churros and likelihood to buy

fruit flavored churros. It consists of a structured set of questions designed to elicit

respondents' perceptions and thoughts on the acceptance of fruit-flavored churros in

Batangas City.

Research Design

To collect data, the proponents will use a descriptive research design. The

proponents will use a descriptive research design to collect, analyze, classify, and

tabulate data about the perception, behavior and acceptance of the respondents to

Fruity N’ Crunchy Churro's proposed fruit flavored churro to be offer in the market.

The use of statistical treatment of data, as well as an accurate and adequate

interpretation of such data, will enable the proponents in identifying the appropriate

study conclusions. Secondary data obtained from books, related studies, and other

literature will also be used by the proponents for additional information required for the

completion of this study.

Respondents of the Study

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 The respondents of the study are the household of Poblacion, Batangas City

selected from proportionate random sampling. To get the population of the respondents

in Barangay Poblacion 1-24, the proponents used the data collected by the former

researcher from the City Planning and Development Office (CPDO) of Municipality of

Batangas City. The total population and the total respondent for this study is 354. The

proponents chose an appropriate location for their business which is in Poblacion,

Batangas City where people usually found, subsequently, the location of the business is

surrounded by Business establishments, Government Offices Banks, Schools,

Churches, and other leisure places.

Data Gathering Instrument

Research instrument in qualitative covers two kinds of instrument; primary and

secondary instrument. Creswell (2012) states that research instrument is assessing,

monitoring, and recording data device. The proponents will use descriptive method to

obtain information that can be used to determine whether the fruit-flavored churros of

Fruity N’ Crunchy Churro in Batangas City will appeal to consumers' taste buds. This

can be done through utilizing survey questionnaire as an instrument in gathering

important data. The proponents will also adopt secondary instrument such as research

books, internet surfing, related studies, and literature in collecting and analyzing the

data.

Data Gathering Procedure

Data collection procedures address how the proponents gathered necessary

information relevant to the study. The proponents had gone through various procedures

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to generate relevant facts and information about the different elements of the proposed

venture. Moving from broad to specific research questions simplifies the process. Any

project's research activities should be more focused in terms of the data required to

answer the research questions.

As a result, data collection questions are among the most crucial in any research

project. A Research Plan is frequently divided into two stages: pre-empirical and

empirical. The first stage begins with the research question, section provides an

overview of what others have done, modification of the research question(s), and

formulation of a hypothesis or theory. The second stage is that part of research where

proponents choose a research design, such as qualitative, quantitative, or a

combination of both, and put together a conceptual framework.

Statistical Treatment of Data

Statistical treatment of data is the application of some form of statistical method

to a data set to transform it from a group of meaningless numbers into meaningful

output.

Based on secondary data that were collected from City Planning and

Development Office (CPDO) of Municipality of Batangas City. Several barangays

particularly the Poblacion 1-24, the total number of the population from such area were

properly identified. A total of 354 survey questionnaires were distributed to the

respondents that serve as potential client of the business.

To have a proper selection of number of respondents per barangay, the Slovin’s

formula below is adopted. This is the allocation of residents per barangay based on the

sample size or the total number of respondents.

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 f
Slovin’s Formula: = (𝑁)
𝐹

Where:

f = number of household populations on each barangay

F = total number of household populations from Poblacion,

Batangas City N = sample size

n = sample size per barangay

Barangay f N F n

Poblacion 1 179 354 4,386 15

Poblacion 2 198 354 4,386 16
Poblacion 3 141 354 4,386 11
Poblacion 4 386 354 4,386 32
Poblacion 5 179 354 4,386 15
Poblacion 6 511 354 4,386 42
Poblacion 7 207 354 4,386 16

Poblacion 8 160 354 4,386 14

Poblacion 9 80 354 4,386 6
Poblacion 10 108 354 4,386 9
Poblacion 11 203 354 4,386 15
Poblacion 12 359 354 4,386 30
Poblacion 13 140 354 4,386 11

Poblacion 14 94 354 4,386 7

Poblacion 15 28 354 4,386 2
Poblacion 16 34 354 4,386 2

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 Poblacion 17 39 354 4,386 3
Poblacion 18 134 354 4,386 11
Poblacion 19 137 354 4,386 12
Poblacion 20 98 354 4,386 8

Poblacion 21 160 354 4,386 12

Poblacion 22 57 354 4,386 4
Poblacion 23 184 354 4,386 15
Poblacion 24 570 354 4,386 46
Total 354

Major Client of the Service

According to the Financial Times Lexicon Clients are “Someone who pays for

services or advice from a professional person or organization. Someone who buys

something from a seller. A computer connected to another computer that controls it, for

example in a network.” Client is somebody who buys goods or pays for services. As

opposed to customers, clients usually have an arrangement or a relationship with the

seller. The business must formulate different kind of strategies like determining the

market, knowing the behavior of your target market and market segmentation which is

necessary to operate the business efficiently and effectively.

The target market of the enterprise is the different Household from Poblacion,

Batangas City with an annual income of 13,000 pesos and above. They are socially

aware and well-informed, and they understand when they are being marketed to. The

target markets are most likely to have the purchasing power and they are also the ones

to be exposed in advertising. These age groups are well engaged in product testing,

advertisement, and the use of social media. The target market's purchasing behavior is

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favorable for the business because the proponents intend to concentrate on using

digital media to meet the customers.

SWOT Analysis

According to Ferrel and Harline (2005), the SWOT analysis provides an

explanation of whether the information indicates something that can help the company

achieve its objectives or provide an indication that there are obstacles that must be

faced or reduced to meet the desired income.

Strengths

Strengths or forces are controllable internal variables that provide favourable

conditions regarding the environment. They are tangible or intangible elements, which

may positively influence the organization’s performance (Rezende, 2003; Boschmann &

Lima, 2014). The following are the strengths of Fruity N’ Crunchy Churro.

Uniqueness. The proponents will differentiate itself from other businesses that

offer foods in line with the product they’re offering. Aside from that, it is more improved

by making it healthier than the usual.

Affordability. Fruity N’ Crunchy Churro aimed to introduce healthy flavored

churro to the market with a selling price that is affordable to the target market

consumers.

Weaknesses

Weaknesses are controllable internal variables that can generate negative

conditions regarding the environment. They are negative aspects that must be improved

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by the different actors in an organization. The following are considered weaknesses of

the business (Rezende, 2003; Boschmann & Lima, 2014).

New Entrant in the Industry. Fruity N’ Crunchy Churro is a new arrival in the

service business, and their fruit-flavored churros are regarded as one of the most

inventive and unique ideas of all time. It is a product that will provide a new way to enjoy

churros. The proponents will face problems not only in entering the market, but also in

several aspects of the business such as financial, technological, and management. As a

result, the owners must know and master because the systematic exercise for

competence requires elaborative courses.

Brand Power. The business cannot compete with the competitors' full-page

advertising, and because it is a new entry, the customer is unfamiliar with the

company's identity. The proponents haven't established themselves as reputable

churros seller in the market yet.

Limited Capital/Tight Marketing Budget. Since the proponents are students

with no supplemental financial income, the business would have limited resources to

use as working capital for the intended product. The firm has a restricted capital, which

may have an impact on the running of the business, as it may necessitate greater

financial resources for marketing, production, and other expenses.

Opportunities

Opportunities may be defined as external uncontrolled variables that can provide

favorable conditions, providing that the organization wishes them and can harness

them. They are current or future conditions that should be widely explored by those

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responsible for the strategic management of an organization (Rezende, 2003;

Boschmann & Lima, 2014).

Increasing Population. The increasing population growth can be considered as

an opportunity for the business. Population growth can increase the number of potential

customers that will create big demand for the business. The continuous increase of the

population in Batangas City is an indication of greater opportunity for Fruity N’ Crunchy

Churro to cater a larger amount of target market eventually realizes a big amount profit.

The greater increase of population the greater increase of revenue.

New Technology. Technology can help the business achieve all its objectives.

Increasing productivity and efficiency is key to reducing costs and maximizing revenues,

which can then be invested into growing the business.

Introduction of New Business. The introduction of fruit-flavored churro will be

pleasant in the market especially since churro is not very well known in Batangas. It can

pique the customer's interest, leading to an increase in sales.

Threats

Threats or risks are uncontrolled external variables that can create unfavorable

conditions, and that can negatively influence organizational performance, so they must

inescapably be faced (Rezende, 2003; Boschmann & Lima, 2014).

Market Risks. Success of a new product introduce in a specific market can

come down to several eternal factors, including customer sentiment, economic

conditions, and unforeseen circumstances (a certain pandemic comes to mind).

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 Supply Chain Risks. Sourcing materials or components from vendors can

reduce costs and internal workloads but it also makes the product vulnerable to supply

chain disruptions. There’s always the possibility that a supplier can’t meet its contractual

obligations.

Lack of Commercial Awareness. Since the product is not as popular here in

Batangas, unlike in Manila, acceptance from the target market might be a hard one.

Marketing Strategies and Programs

Fruity N’ Crunchy Churro will advertise its goods on social media sites such as

Youtube, Tiktok Facebook, Twitter, and Instagram. This will help the proposed product

become known, and the proponents will be able to keep up with market trends. The

proponents want to use social media capabilities to improve the business and its

products and provide new products to the market. The proponents plan to use printed

materials such as flyers and banners to advertise the company in its target market.

Another great strategy is uploading a written blog or article and embedding an

accompanying video: this way the business will appeal to two different types of

customers; the ones who read blogs and the ones who watch them. This appeals to the

two different types of recipients: the ‘visual’ and ‘auditory’ categories of viewer. The

business will provide a comfortable environment with a pleasant ambiance for its

customers to attract the attention of individuals who are interested in the product that

the business provides. The proponents believe that having a pleasant environment

where their customers can enjoy and have fun will give the business an advantage.

Given that Fruity N’ Crunchy Churro is new to the market, proponents will implement

programs such as discount, promo, and deals at the start to attract more customers,

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which will also serve as a taste test of the product in the market. The firm will be in the

finest feasible area that the proponents believe will be the greatest to offer the product

and precede the operation. Proponents also appreciate the importance of word-of-

mouth in spreading information about how a product tastes, its value, and the service

itself. It will be a great benefit to the company if people talk about how amazing their

product is. Fruity N’ Crunchy Churro will advertise its product as effectively as feasible.

The proponents recognize the importance of having good marketing strategies

and programs that will undoubtedly help the business achieve its goal in the shortest

amount of time possible. The proponents are aware that having these programs and

strategies will cost them, which is why they included it in their financial plan for it to be

properly implemented.

Given the business's marketing plans and programs, the proponents are aware

of the market's competition, which includes big names and brands, but the proponents

believe that their product, with its distinctive and original features, will be a market hit.

Service

Fruity N’ Crunchy Churro is a company that plans to sell fruity-flavored churros in

the market. Because many people are unfamiliar with churros, the company wants to

give customers a one-of-a-kind experience on their first visit. Of course, Fruity N’

Crunchy Churro will operate in a mini stall where customers can see the process of

churros preparation and cooking to ensure that the product offered by Fruity N’ Crunchy

Churro is made in a spotless manner. The proponents aim to make churros healthier

than the original by adding fruits to the ingredients. Through this novel method of

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making churros, the business hopes that people will enjoy it until it brings success to the

business.

Service Category/Quantity/Category

Fruity N’ Crunchy Churro is a product-based business where it offers tangible

items in the market. The proponents decided to locate the business where it has easier

accessibility to the market. It will be a small stall that offers fruit-flavored churros that

gives healthier benefits and satisfaction for its crunchiness. Studies have shown that

stressed individuals prefer crunchy/salty foods as comfort food. The business will serve

its customers through semi-self-service where customers will order and pay for their

orders at the counter, but their food is served to them when ready. Fruity N’ Crunchy

Churro will introduce a product that has been existing but remain unknown to some

netizens in Batangas City. Drip-feeding the customers with curiosity will lead them to try

new product until they like it. As it is the case, the business will also accommodate take-

outs for its customers that cannot visit the store.

Service Name

The business name was Fruity N’ Crunchy Churro, it was the proposed name by

the proponents which classify the main product that being introduced by the conductors.

From the name of the product, fruity signify the flavor of the churro and crunchy for the

outcome of the final product. The tagline of the business which is “Bite, Dip, Share”

signifies the process and experience of eating churro. All the proponents agree on the

name of the business, they believe that the meaning of it mirrors what they really want

as innovators.

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 The proponents want to make a difference by innovating the original churro to a

fruit-flavored one. The conductors want them to find something new that they can look

forward without hesitation. The proponents want to spread healthier snack where

people can buy without waiting for so much time and carry it immediately.

Pricing

Pricing is the method of determining the value a producer will get in the

exchange of goods and services. Simply, pricing method is used to set the price of

producer’s offerings relevant to both the producer and the customer. As one of the key

determinants of competitiveness, proponents will set the most affordable price that

ultimately benefit the customer.

Selling Mango-flavored Churro

with White Choco dipping Sauce
Manufacturing Cost
Php 295.50
Direct Material Used/Unit
Php 11.00
Indirect Material Used/Unit
Php 26.67
Labor Cost/Unit
Php 333.17
Total Manufacturing Cost/Unit
Php 23.32
Markup (7%)
Php 356.49
Total Selling Cost/Unit

Selling Mango-flavored Churro

with Chocolate Dipping Sauce
Manufacturing Cost
Php 297.50
Direct Material Used/Unit
Php 11.00
Indirect Material Used/Unit

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 Php 26.67
Labor Cost/Unit
Php 335.17
Total Manufacturing Cost/Unit
Php 23.46
Markup (7%)
Php 358.63
Total Selling Cost/Unit

Selling Mango-flavored Churro

with Cheese Dipping Sauce
Manufacturing Cost
Php 303.78
Direct Material Used/Unit
Php 11.00
Indirect Material Used/Unit
Php 26.67
Labor Cost/Unit
Php 341.45
Total Manufacturing Cost/Unit
Php 23.90
Markup (7%)
Php 365.35
Total Selling Cost/Unit

Selling Banana-flavored Churro

with White Choco Dipping Sauce
Manufacturing Cost
Php 301.72
Direct Material Used/Unit
Php 11.00
Indirect Material Used/Unit
Php 26.67
Labor Cost/Unit
Php 339.39
Total Manufacturing Cost/Unit
Php 23.76
Markup (70%)
Php 366.15
Total Selling Cost/Unit

Selling Banana-flavored Churro

with Chocolate Dipping Sauce

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 Manufacturing Cost
Php 303.72
Direct Material Used/Unit
Php 11.00
Indirect Material Used/Unit
Php 26.67
Labor Cost/Unit
Php 341.39
Total Manufacturing Cost/Unit
Php 23.90
Markup (7%)
Php 365.29
Total Selling Cost/Unit

Selling Banana-flavored Churro

with Cheese Dipping Sauce
Manufacturing Cost
Php 310
Direct Material Used/Unit
Php 11.00
Indirect Material Used/Unit
Php 26.67
Labor Cost/Unit
Php 347.67
Total Manufacturing Cost/Unit
Php 24.34
Markup (7%)
Php 372.01
Total Selling Cost/Unit

Place of Distribution

Place strategy plays a fundamental role in the marketing mix of a product or

service. Place strategy outlines how and where a company will place its products and

services to gain market share and consumer purchases. This component of the 4Ps is

sometimes referred to as the distribution strategy and may include stores, both physical

and online, and any other means by which the company can reach customers. Given

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the population, the proponents would aim to construct the business at a stall-type area

within Poblacion, Batangas City Fruity N’ Crunchy Churro will be established in the

market of Poblacion, Batangas City, using the available space that will be rented to.

This place would be available for the customers who want churros. Fruity N’ Crunchy

Churro will market its products and services through social media platforms, online

shopping channels, and commercials that will provide all product information to clients

directly. Because the stall will be in the market, all potential customers will have easy

access to the product.

Fruity N’ Crunchy
Churro

CUSTOMER
Figure 1
Distribution Channel
Promotion

Promoting a product is one of the most important activities of a business. The

term “promotion” means the process of communication between companies and

customers to create positive attitudes about products and services that lead to their

favor in the process of buying in the market (Novak, 2011).

The proponents will use different promotional strategies to recommend the

products to the consumers and to bring the existence of “Fruity N’ Crunchy Churro” in

the circulation of marketing. The Fruity N’ Crunchy Churro would have online

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advertisement, which cost one thousand eight hundred pesos (₱1,800.00) for one-

month promotion, flyers and stickers that cost one thousand fifty pesos (₱1,050.00), five

units of tarpaulin that would be displayed 3 days before and during the operation of the

business which cost one thousand five hundred pesos (₱1,500.00) and word of mouth.

These promotion investments have the total cost of four thousand three hundred fifty

pesos (₱4,350.00). To effectively introduce and boost the interest of the consumers,

Fruity N’ Crunchy Churro will spread out information and benefits of the fruit-flavored

churros through online advertisement and printed materials like tarpaulin, flyers, and

stickers in the city of Batangas.

Promotion Mix is a set of different marketing strategies which consists of

advertising, personal selling, public relations, and direct marketing used by the business

to optimize promotional efforts and reach broader market.

Table 1
Promotional Mix
What Who When Where How Budget

1. Online Proponents 1Month before the In social media By updating and ₱1,800.00
Advertisement operation. accounts like posting about
(1 month)
Facebook, the products of
Twitter & the business.
Instagram.

2. Flyers & Proponents 3 Days before the Malls and It will be ₱400.00 (10
Stickers operation. Outside of the distributed to pcs
Universities. different Malls stickers)
and outside of
₱ 650.00
the universities.
(1000
flyers)

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 3.Tarpaulin Proponents 3 Days before and Batangas City It will be posted ₱ 1,500.00
during the Malls, Streets, to the streets
10 units
operation. and Markets and in markets
where most ₱ 150.00/
people are unit
passing
through.

6. Word of Satisfied It is uncontrollable. It can be done The satisfied

Mouth Customers We cannot Through customers will
determine if the gatherings, suggest the
satisfied customers status in social products to their
are going to talk media, phone family and
about our service. call and other friends.
messaging apps.

Total ₱31,000.00

Figure 2
Online Advertisement

Figure 3
Social Media Account

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 Figure 4
Tarpaulin

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Generalization

Services marketing refers to several marketing methods. Rental costs for

physical stores and equipment are examples of intangibles used to meet the needs of

customers. Informational content, promotional discounts, and commercials are the

methods that the proponents will be using for promoting a product to a buyer that

creates the most value for them to purchase. The proponents' target demographic are

adults and everyone who wants to try the fruit-flavored churros in Poblacion, Batangas

City. The proponents aim to establish a physical store at the "location" where the fruit-

flavored churros will be offered directly to the customer. Fruity N' Crunchy's proposed

products will benefit the client because of their nutritious composition, which will meet

their cravings and payment. It will also be a great method to share the innovation of

churros with family, relatives, and friends while spending quality time with them. Fruity

N' Crunchy Churro will establish customer loyalty by providing a handy product and

relaxing dining choice in the area.

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 Chapter III
PRODUCTION PLAN

It is the complete study regarding the input, process, and output of the proposed

product. It deals also with the plant location, size, and layout of the proposed business.

It is an effective tool for long-term planning regarding the business. It should also

support the materials and expenses needed to establish the business and the direct

labor requirement.

Objectives of the Study

The overall objective of the study is to determine the feasibility of the Fruity N’

Crunchy Churro in the market. To achieve this, the proponents set specific objectives as

follows:

 To identify the product description, uses of the product and the process on how

to manufacture the product of the Fruity N’ Crunchy Churro.

 To determine the time needed on manufacturing or producing the proposed

product and the production schedule.

 To identify the appropriate equipment, facilities, tools, materials, and resources

needed to produce the product.

 To identify the proper plant layout and location for the business and the

production of the product.

Product Description

Considering several elements of services such as service It is used in pricing and

contract papers seen in commercial commerce. It is obvious that the ideas,

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connections, restrictions, and behavior required for a complete service description are

numerous and complicated. Given the dimensions of service description language, the

complexity of service-related information should explicitly support modularity to increase

service descriptions' manageability and flexibility (Barros &Oberle, 2012).

The planned company specializes in fruity Churros. The business offering a

unique and appealing product that draws customers. The authors propose that a

consumer can select from a selection of fruity and crunchy churros. The Fruity Churro is

available in a variety of fruit flavors, including Mango and Banana.

Process Flowchart

The proponents offer a data flow via which product distribution will take place.

Fruity N’ Crunchy Churro’s is a product-based firm that creates goods with the intention

of selling them to the market. The advocates will demonstrate the actual technique,

mechanism, and flow of product delivery to clients. It will allow the company to acquire

the confidence of its customers by making a positive impression with the quality of the

product that they will manufacture.

The distribution of the company's product will take place. Regarding the order

procedure via the counter that the supporters will make the second phase will be the

manufacturing procedure, in which the proprietors will create the item purchased by the

consumer. The product selling process will include the order process, the manufacturing

process, and the delivery of the product to the consumer. Fruity N’ Crunchy Churro’s will

provide a waiting space for its customers to make the ordering procedure more

comfortable. According to reports, the company would provide physical products to its

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customers. The company will have innovative methods that will help it expand and fulfill

its short- and long-term goals. Each technique and process proposed by the proponents

strives to assist the firm in maintaining a positive relationship with its customers. Tops n'

Slices will use social media channels to market their business through their profiles.

Customers may order the product using the page's message box, and conductors can

access and act on the requested merchandise. The business will provide delivery

services with an additional charge for the delivery procedure, and the firm's products will

be distributed in various ways with which the proponents will comply.

Figure 5
ORDERING PROCESS OF PRODUCT

START

ORDERING
PROCESS

PROCESS MAKING

PRODUCT
DISTRIBUTION

END
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 Figure 6
ORDERING PROCESS OF PRODUCT THROUGH ONLINE

START

ORDERING PROCESS
THROUGH PAGE

MAKING
PROCESS

DELIVERY
PROCESS

PRODUCT
DISTRIBUTION

END

Users and Customer of the Product

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 Fruity N' Crunchy Churro encourages innovation in a market where items such as

churros may still be developed and innovated. The company sells many varieties of

fruity flavored churros. Proponents provide fruity-flavored churros that are apart from the

norm, typical and give a variety of tastes as it offers consumers' chosen flavors. The

product may be enjoyed throughout typical daytime and snack time, and it can be eaten

by everyone because it appeals to practically everyone.

Production Schedule

The process of planning, regulating, and maximizing work is known as

scheduling and the responsibilities in a business's production or manufacturing process.

Fruity N' Crunchy Churro's aim or objectives are set to be achieved within the time

frame specified by the proponents. These objectives can be realized by adequate

planning and scheduling of certain business tasks to be conducted throughout the firm's

operation. The percentage of a project schedule is quite significant, and it helps to plan

the process. The process must have distinct inputs and a single output. These inputs

include all the aspects that contribute, either explicitly or implicitly, to the added value of

the business's product.

Table 2
Production Schedule
Time General Manager Cashier Cook 1&2 Server 1&2
7:30 AM – ----- ----- Preparing the ------
8:00AM Materials Need
8:00 AM – Checking the Preparing the Cash ---- Prepare and
8:30 AM workplace Register Machine/ cleaning the
Receipt Machine workplace
8:30 AM – Supervising Accepting Orders, Starting of Serving and
12:00 PM payment and issuing making the providing the
of receipts Churro/ Cooking needs of the
Churros customers
12:0 PM – Lunch Break/ Lunch Break/ Lunch Break Lunch Break/
1:00 PM supervising Accepting customer Serving customer

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 1:00 PM – Supervising the Accepting orders, Starting of Serving and
3:00 PM workplace / payment, and making the providing the
entertaining issuing of receipts Churro/ Cooking needs of the
customer Churros customers
complaints
3:00 PM – Break time Break Time / Break Time / Break Time /
3:30 PM Accepting Customer Reheating Orders Serving orders
3: 30 PM – Supervising the Accepting orders, Reheating of the Serving and
5:00 PM workplace/ payments and orders of the providing the
Entertaining the issuing receipts customers needs of the
complaints customers
5:00 PM – Cashier Cashier Balancing Cleaning cooking Cleaning the
5:30 PM Balancing area and storing Workplace
(Closing) ingredients

Business Location

Figure 7
Business Location

Business Size and Layout

The location and structure of the plant are critical in the timely manufacturing of

churros. It eliminates delays by maximizing space and allowing businesses to organize

their products and equipment in the correct location.

Having a good location and an accessible business location is an advantage for

the business. Fruity N’ Crunchy Churro will be located at Batangas City.

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 The churro parlor will have its own production design, which will result in a more

efficient workplace because all the necessary supplies will be in one location. The

proponents engaged architecture students to ensure proper layout design and area

measurement. The enterprise's suggested layout is seen in the image below.

Figure 8
Plant Layout

Figure 9
Establishment Layout

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Capacity Schedule

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 Since the business is new in the industry, the partners will be the worker of the

business. They are also responsible for managing the business. The working hours of

the business will be 8 hours, starting from 8 in the morning and will end 5 in the

afternoon. The allotted hour for the lunch break would be 1 hour and it is at 12 noon and

working hours would resume 1 in the afternoon. The working days will be Monday to

Sunday and the workers will finish 15 cup per day.

Table 3
Capacity Schedule
YEAR DAILY WEEKLY MONTHLY ANNUALLLY
2022 15 105 420 5,040
2023 21 147 588 7,056
2024 27 189 756 9,072
2025 33 231 924 11,088
2026 39 273 1,092 13,104

Office Furniture and Fixtures

The following are the furnishings and fixtures that will be utilized by staff

operation of a business. The office furniture and fixtures that will be utilized also

included below.

Table 4
Workplace Equipment, Furniture and Fixtures
Description Quantity Unit Cost Amount Cost
Saucepan 2 Php 550.00 Php 1,100
Deep fryer 2 1000.00 2,000.00
Chiller 1 12,450.00 12,450.00
Total Php 15,550.00
Source: SM Appliances and Shopee

Table 5

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 Operation Equipment, Furniture and Fixtures
Description Quantity Unit Cost Amount Cost
Mixing Bowl 2 Php 180.00 Php 360.00
Measuring Cups 1 50.00 50.00
and Spoons
Pipe Bag 2 70.00 140.00
Total Php 550.00
Source: Baking Tool Shops

Maintenance Supplies

Maintenance Supplies are items used to maintain the business tidy. It would also

aid in the practice of cleanliness in the workplace. Because a tidy workplace provides

employees with a sense of safety.

Table 6
Maintenance Supplies
Description Quantity Unit Cost Amount Cost
Garbage Bags 2 packs Php 50.00 Php 100.00
Big Trash Can 2 pcs 300.00 600.00
Rags 4 pcs 25 100.00
Broom 1 pc 100.00 100.00
Light Bulb 2 pcs 120 240.00
Total Php 1,140
Source: CitiMart, Public Market

Office Supplies

Office Supplies are materials needed for the business to operate. These are all

used for the paper works of the business. It makes the office work easy and accurate.

Table 7
Office Supplies
Description Quantity Unit Cost Amount Cost

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 Ballpen 3 pcs Php 8.00 Php 24.00
Carbon Paper 1 pc 5.00 5.00
Calculator 1 pc 200.00 200.00
Receipt Slip 5 pcs 15.00 75.00
Record Book (500 2 pcs 90.00 180.00
sheets)
Scissor 1 pc 20.00 20.00
Total Php 504.00
Source: Public Market

Raw Materials Requirement

It is the materials needed to produce the product. It is also called the raw

materials to produce the proposed product. All are required and vital to create the

desired taste and presentation for the product. Products will not be released in the

market.

Table 8
Direct Materials
Description Quantity Unit Cost Amount Cost
Flour 1 sack (25 kg) Php 1,285.00 Php 1,285.00
Butter 227 g 142.00 142.00
Sugar 1 kl 80.00 80.00
Chocolate 1 kg 400.00 400.00
Cheese 1 kg 300.00 300.00
White Chocolate 1 kg 260.00 260.00
Vegetable Oil 2L 285.00 570.00
Salt 500 g 30.00 30.00
Banana 1 kg 70.00 70.00
Mango 1 kg 120.00 120.00

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 Egg 4 pcs 7.00 28.00
Cinnamon Powder 1 kg 60.00 60.00
Mango Extract 475 ml 640.00 640.00
Banana Extract 475 ml 640.00 640.00
Nestle Cream 250 ml (3 pcs) 75.00 225.00
Total Php 4,850.00
Source: Baking Shops, Shopee, SM

Table 9

Indirect Materials
Description Specification Quantity Unit Cost Total Cost
Label Sticker 150 pcs. Php 5.00 Php 750
Box Plastic box 50 pcs. Php 6.00 Php 300
Total Php 1,050

Utilities

The utilities are vital to the business because it will help the business to operate.

It will make the business operate easily and efficiently. Utilities are crucial to the

economy because they provide the necessary infrastructure to guarantee that

businesses have access to light, heat, clean water, and appropriate sanitation when

they need it. Every day, many of us take these items for granted.

Electricity

The electricity of the business would be provided by Meralco. It is the electricity

provider at the locality of Población, Batangas City. Since the business will be

established at Población, Batangas the Meralco will provide the electricity for the

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business. The projected annual consumption of electricity of the business will be Php

4,200.00.

Water

The water of the business will be provided by Batangas City Water District

(BCWD). It is the water provider in the locality of Batangas. Since the business will be

located at Poblacion, Batangas City they will acquire the service of BCWD as their

water provider. The projected annual consumption of water of the business will be Php

6,000.00.

Telecommunications

The telecommunications will be provided by PLDT (Philippine Long Distance

Telephone). It is one of the telecommunications providers at Batangas City. Since the

business will be at Poblacion, Batangas City, they will acquire the service of PLDT as

the telecommunications provider. The projected annual consumption of

telecommunications of the business will be Php 9,600.00.

Table 10
Utilities
Description Unit Cost (Monthly) Amount Cost (Annually)
Electricity Supply Php 4,200.00 Php 50,400.00
Water Supply 500.00 6,000.00
Telecommunication and 800.00 9,600.00
Internet Communication
Total Php 5,500.00 Php 66,000.00

Waste Disposal

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 Garbage disposal is a global problem that is only becoming worse as the

population grows. developed countries and population growth Waste mismanagement

has major environmental consequences, making the enactment of Republic Act (RA)

9003 or the Ecological Solid Waste Management Act of 2000 a watershed moment in

Philippine environmental policy. The law was drafted in response to the country's

impending waste challenges. RA 9003 establishes the state's policy of implementing a

structured, comprehensive, and ecological solid waste management program that

ensures the protection of public health and the environment, as well as the proper

segregation, collection, transportation, storage, treatment, and disposal of solid waste

through the formulation and implementation of best environmental policies. One of the

common criteria in starting a business is to maintain and follow the cleanliness of the

environment, particularly in the food industry, which is an important aspect of customer

service that provides a positive first impression on consumers and helps to build their

loyalty. Since then, proponents have created garbage categories that cannot simply be

dumped into a pit. Waste products will be disposed of in three garbage bags (reduce,

reuse, and recycle) and collected by the garbage collector. Each waste bag will include

a label to prevent consumers from being confused while dumping out their trash. The

firm will follow the waste management norms and restrictions established by the lessor.

Generalization

The suggested product focuses on churros by offering a variety of fruity and

crispy flavors. Fruity N' Crunchy Churro was intended to replace the traditional churro

and to address the issue of churro flavoring. To modify the conventional taste of churro,

proponents propose offering new flavors of fruity and crispy churros.

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 Fruity N' Crunchy Churro lets you to build a product that will transform the churro

business. Fruity N' Crunchy Churro offers a range of tastes, and clients are allowed to

add fruits of their choice. The process must have distinct inputs and a single output.

These inputs include all the components that contribute to the added value of a product,

either directly or indirectly.

The location is the most crucial aspect to consider while starting a business. The

supporters set up shop in a market in Poblacion, Batangas City.

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