COMPANY OVERVIEW A.

Vision statement Love treats envisions to be the best spreader of good vibes by providing customers scrumptious and delightful desserts. Love treats commitment to stewardship and integrity helps us form strong relationships among stakeholders. With the companys eagerness to put smiles on each customers face, Love treats strives to create delectable products in pursuit of giving happiness to every person eating it. Our dedication and mission to excellently and continuously develop existing food products as efficiently and effectively as possible would help us attain our vision of being the best shop in the industry that provides good vibes, along with smiles, to customers through our product offerings. Our goal is to perform well and be competitive in this unpredictable and challenging business environment and it can be achieved through persistence, great management skills and continuous innovations. And eventually by 2015, Love treats will have 3 branches within Laguna. B. Company Profile History

Nowadays, in this fast paced world, people are often encountering problematic situations wherein they usually get tired and depressed at the end of the day. Since the members of the management team are still students, they personally face those kinds of situation and that is where the idea of the business concept came along. O&C decided to put up a business aiming to render food products that would put smiles on faces of people by making them savor the delightful taste of the desserts. The small scale business offers quirky named desserts that are convenient for potential customers to bring along. The target markets of the business are students and professionals since anyone can drop by and take pleasure in eating sweet food products in affordable prices. Love treats is all about selling a variety of pastries, specifically cakes, with accompanying quirky names (i.e. ones love status) attached to it and by having the toppings of the cakes as the differentiating factor. We believe that having this gimmick would entice people to try our product. The challenge here though is that we are a start up business and we have not established a defined market yet. There are so many risks involved in having this business established and maintained along the way within the certain time frame. Business Structure

O & Cs chosen business structure is partnership. The structure is partly customized for our own purposes. We have agreed upon that there is one person (i.e. Joville Andrea Foliente) who will lead the entire team or partnership in terms of organizing key business decisions. Each partner is accountable and responsible for the operations of the business, its assets and liabilities. The business is composed of 5 partners working together to pursue its establishment. 1

Moreover, each member is entitled to be knowledgeable and versatile in the business operations although each one is tasked to specialize in a specific business function. Personnel

As mentioned earlier, the chosen leader of the partnership is Joville Andrea Foliente and the rest of the management team are subordinate to her in terms of organizing the business; however, each partner has equal rights to intervene and make sound suggestions and decisions, especially if Joville is away. Based on the organizational chart above, we have decided that we will not hire employees yet since the partners can still handle the daily operations of the business. Pherzy Jane Diez, the marketing manager, is given the task of feeling the pulse points of the target market. She is responsible for making strategic marketing strategies to entice potential customers and have them buy the products. She has to determine the demand for the product and study how the business can add value to its existing products. Adrian Angelo Frio, the financial manager, is in charge of supervising the acquisition, management and financing of resources needed for the operation of Love treats. He has to check the financial health and condition of the company. Basically, he has three activities: 1. To analyze and plan 2. To make investment decisions 3. To make financial decisions. On the other hand, Jazaika Marie Bienvenido serves as the production manager. She has to ensure that the amount of resources is used efficiently in order to produce sufficient products at the least possible cost while still maintaining high quality. She is also involved in baking pastry products that will be made available in the store. Other members of the partnership will also lend a hand in the baking of the desserts. Divine Krizza Padua, the human resource manager, is assigned to scrutinize and evaluate the potential employees of the business. Furthermore, she must monitor the performance of the employees in order to check whether their action and attitudes toward work are in line with the mission of Love treats. However, since the business is not yet planning to employ persons in order to lessen the startup costs, she is temporarily tasked to help Jazai in producing the products.

C. Executive Summary Love treats, unlike a typical pastry shop, will provide a one of a kind taste of desserts that will paint smiles to every customers face. The word of our vision statements reflects our commitment to deliver superb, delicious, and excellent cakes. Our products will capture the interest of the customers by having a unique name for cakes based on ones love life status. The products names are associated with fruits which are used as the cakes toppings. Our aim is to create delectable products in pursuit of giving happiness to every person eating it. Our focus is on quality production with bottom-line growth through cost reduction and optimal performance. Establish an honest and strong relationship with stakeholders. As a team input will be collected and analyzed and put into practice regularly. Planning in developing the products will be prioritized to give unlimited treats to people. The financing of this business has already been secured in the form of personal savings from the owners though the company is open to potential investment partners. Our marketing strategy will include word of mouth advertising via quality output and friends relationships. Fliers and posters advertising to increase peoples awareness of the products, and giving discounts for the first 15 (fifteen) customers. Our long term goal is to to perform well and be competitive in this unpredictable and challenging business environment and it can be achieved through persistence, great management skills and continuous innovations. And eventually by 2015, Love treats will have 3 branches within Laguna. In the short term goal we will expand the range of our product lines. D. Management Team Joville Andrea Foliente is the kind of person who we can communicate to easily. Her positive, light and jolly attitude makes a person feel immediately close to and comfortable with her. There is something nice around her presence. Since the proposed business venture involves interacting with people, that skill would be an advantage in terms of dealing with potential customers and staff. Aside from that, she exudes confidence. She is also a smart, workaholic and responsible lady. These characteristics qualify her as a good leader and manager. Pherzy Jane Diez has the skills to plan systematically and to work vigorously on a task assigned to her. Her determination to finish something she has to do is a very necessary skill in running a business. Her time management skills are also needed in this proposed venture. Under that petite body structure, a friendly and intelligent lady resides. Adrian Angelo Ogie Frio is a mature, talented and intelligent person. His confidence, charisma and ability to formally talk to potential lenders and suppliers will be very helpful in this proposed venture. His love for music would also be useful in this business since he and the band (Pathway) where he belongs to can perform someday in the store.

Jazaika Marie Bienvenido is a very confident girl who is very good at working under time pressure. She is the kind who is fond of asking questions out of curiosity. Her love for books and baking are essential skills to the business venture. Divine Krizza Paduas peaceful phlegmatic personality allows her to be a mediator of problems in the business. She can listen endlessly to the people having opposite and conflicting personalities. She can be considered as a steady worker who has administrative abilities in dealing with various people. She is always committed to the work contract and persists that she finished everything assigned to her. THE INDUSTRY Industry Overview 1. Market Descriptions Our business belongs to the bakeshop industry specialy in cake making. Cakes are different from breads because they are usually sweet that have many ingredients besides flour. The most common ingredients are flour, eggs, sugar, fruit, fat, raising agents and fruit but other ingredients aside from these can be used by the baker. (http://www.bakeinfo.co.nz/Facts/Cakemaking) The cake that we will be offering is a charlotte cake. A charlotte is a type of dessert that is served hot or cold. It is also known as an "ice-box cake". Bread, sponge cake or biscuits/cookies are the It ones can used also to line be a mold, using which is then of filled with

a fruit puree or custard.

made

layers

breadcrumbs.

(http://en.wikipedia.org/wiki/Charlotte_(dessert) Nowadays, Filipinos have been given the chance to finally choose from a very wide collection of bakeries and pastry shops across the country especially in bakeshops in the Philippines. The cake and pastry industry in the Philippines have steadily grown especially in the opening of international bakeshops in the country.

Today the Bakeshops like Dlifrance, The French Baker, and Bread Talk are some of the most popular bakeshops in the Philippines. However these, have only been introduced from other countries, in which the Dlifrance franchise was acquired by Jollibbee. Other than these bakeshops and cafes, there have also been other popular bakeries in the Philippines which is proudly Filipino own. The top 3 among these are Goldilocks, Red Ribbon, and Bizu Philippines

Patisserie. (http://www.articlesbase.com/gifts-articles/top-three-filipinoowned-bakeshops-in-thephilippines-2209852.html) 2. Industry Trends Baking has grown over the last century in the Philippines, from a relatively small industry to a large, popular industry. Originally, the country featured mostly independent bakeries that only serviced cities and towns. Today, chain bakeries have increased the number of bakeries in the country and have made the prices of bakery products lower. The baking industry has grown due to the increased demand for bakery products of most Filipinos, providing greater employment opportunities both in the bakeries and in central management. Bakeries provide necessities to the population in terms of bread and cake products. Nearly every household relies on the consumption of staple products like bread, and so the baking industry is able to prosper with this large, reliable demand. The industry provides significant employment opportunities. Many people in their later teen years take up apprenticeships in bakeries to learnthe trade. (http://philippines.blurtit.com/q6617818.html) Moreover, several advantages that a bakery business offers to a new entrant is the free choice of market. Another is finding a good location for a bakeshop is easy. Since bakery products are considered as a daily consumable, any populated area is a good place for a bakeshop. Furthermore, there are hundreds of bread varieties that can be adopted by a bakery to satisfy the taste of his consumers and the last is that the industry enjoys continuous growth. (http://www.mixph.com/2009/05/starting-a-bakery-business-guide.html) Competitive Analysis 1. Nature of competition In the country, there are many players in the industry like international franchise bakeshops mentioned earlier, chain bakeshops, and those small scale bakeshop owned by families. The entry/exit in the industry is easy thats why there is a great competition among the players. Another is, equipment is not a problem since most bakeshops are home-made which is highly customized and will not require very high tech equipment. 2. Target markets Breads are becoming a staple food in the country and therefore are eaten by many Filipinos. Many bakeries mostly offer cakes, sweets and desserts to offer variants in their 5

products. Since cakes are often considered as specialty breads, the target markets are the consumers belonging to middle and high income level. These people have the capability to purchase products since they mostly want several flavors in this particular food. It also caters sweet-toothed people since they are the main patronizes of the product. 3. Product Positioning and pricing Bakeshops in the Philippines position cakes as specialty food and specialty desserts in which people only served them during special occasions and especial events. Also, cakes are offered as gifts. An example is the products positioning of Red Ribbon below:
From birthdays and christenings to weddings and anniversaries, we

have countless reasons to celebrate. Whether these are certified red-letter days or just especially personal and meaningful days, these moments are definitely made more beautiful with a Red Ribbon cake.
Source: Red Ribbon Website <http://www.redribbonbakeshop.com.ph>

Having that kind of positioning, it is evident that they are expensivehigh priced. 4. Marketing strategies The products are highly customized. Bakeshops usually use tri-media in marketing and promotion. Since they are into food business, pictures are greatly needed. They advertise their products in tv, magazines, newspapers and fliers. Also, they have a bundle promotion in which different breads are combined with lesser prices like what Goldilocks is doing. Bakeshops are widely spread in the country so there is easy access in purchasing such product. 5. Competitive advantage Cake symbolizes especial occasions so special events is not that meaning full without cakes. Filipinos are fond of celebrating special days so cakes and specialty foods are part of their diet. Also, every people differ in their special days so customers purchase cakes in different time and in different days like weddings, birthdays and christening. During holidays like Christmas, New Year, Valentines Day, Graduation Day, cakes are celebrities.

BUSINESS STRATEGIES Operation and Management plan 1. Administrative operations The company will be adopting the informal administrative operations since the owners decided to not hire any employees as of the moment. The owners will act as the officers of the administration and perform the tasks delegated (which are their positions) to them. The division of companys administration is as follows: Pherzy Jane Diez as marketing manager, Adrian Angelo Frio as financial manager, Jazaika Marie Bienvenido as production manager, Divine Krizza Padua as human resource manager, and Joville Andrea Folliente as the general manager. The owners will carry out their expertise in their field. All the owners of the company are included in the planning and decision making to ensure the success of the business. Owners should all agree in any decisions before they can implement it. Any prospects and issues that the company may encounter will be discussed with all of them, as well as the policies and regulation. 2. Manufacturing Plan a. Company Location and Facilities Love treats will operate its stall for a week at no cost in the CEM parking lot owned by the College of Economics and Management, UP Los Baos College. However, the company is currently looking for a space near the campus to continue its operation for a month after 1 week of operating in CEM parking lot. Being a start-up business, the owners decided to use their house to facilitate the production and manufacturing processes of their products. The facility is located at Bay, Laguna. b. Production and Condition of Production The company will offer two products: charlotte cakes and drinks. Charlotte cakes will be offered in different fruit flavors which are associated to the love life status of the customers. The production of the cake flavors will be divided equally. Any suggestion for the improvement of the cakes from the customers will be appreciated. c. Staffing The staff is adequate and can handle the business with ease. They are expert in their field. However, additional training will be provided for them in the production of the products to handle any increase in volume. If new workers are needed, owners will help them.

d. Inventory The charlotte cakes will be stored in a cooler. The space of the cooler exists to handle 50-80 units of charlotte cakes. The company does not want to hold products for more than two days and will attempt to tie processing to orders to minimize inventory. Of course, the inventory policy to be followed is first in, first out. Product freshness will be monitored daily by the production manager. e. Materials Ingredients and container cups will be bought at the towns market, however if the company will continue its operation after the given period of 1 month, the company will look for possible suppliers of the raw materials. f. Environmental Issue

In accordance to the no plastic policy of the town where the company operates the business, paper cups and containers will be used as packaging for the products. 3. Equipment As for now, the company doesnt need any equipment for its production. 4. Logistics Ingredients and materials will be bought based on the set production volume per week. The products will be launched and sold at CEM parking lot in a stall however after a week the business will be transferred. Aside from having a stall, the owners will use direct selling for their distribution. Feedback and suggestion from the costumers will be asked to improve the products.
1. Acquiring raw materials and packaging 2. Storage of raw materials 3. Transferring of raw materials to production

4. Production

5. Branding and packaging finished products

6. Cooling and storing finished products

7. Selling finished products

8. Customers

9. Customers feedbacks and suggestions

Fig. 1. Logistics Process 8

Marketing and Sales Strategies Marketing Strategies 1. Product

Love treats will basically offer charlotte cakes with different toppings. The toppings have tag lines which say something about a persons love life. Here are various toppings and its corresponding tag lines where customers could choose from:

Toppings Mango Cherry Banana Cheese Pineapple Papaya Assorted (pineapple,mango,papaya,etc.) Happy Crushed Oreo Meringge Heart-shaped design -

Tag Lines Hard to get Single but ready to mingle Buti pa ako, may puso Ang cheesy ko May asim pa ako Ako ang sinta nya Its complicated M&M Bitter ako Still searching Taken

To add entertainment, at the back of the cover of each plastic cup, there would be a Todays Advice written in a strip of paper. To complement the cake, fruit juice is also made available. It has apple bits and a slice of orange on its side. 2. Price The price of the charlotte cake per cup is P14.00 while the fruit juice will be priced P10.00 per paper cup. Love treats offerings are cheap that whoever craves for cake need not spend much just to take away their cravings.

3. Place Love treats will be located initially at the CEM Parking Lot for a week, during the launch of the business fair. Then, it will transfer to Grove.

4. Promotion a. Advertising Flyers and posters will be used for customer awareness and for product recognition. Also, the members of the group O&C will also inform their classmates and other students that they are offering Love treat products. Sales Strategies To encourage more customers to buy, the first 15 people who will avail Love treats charlotte cake offerings would get an approximately 15% price discount. This means that they can have the cake for only P12.00, instead of its original price which is P14.00 per cup. Packaging

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FINANCIAL REPORTS A. Cash flow projection

B. Weekly income statement

Week 1 Revenue Sales Sales Discounts Net Sales Cost of Goods Sold Gross Profit Operating Expenses Travel Expenses Advertising Expenses Total Operating Expenses Income From Operations Net Income 25 25 50 1825 1825 25 25 50 2200 2200 25 25 50 2575 2575 25 25 50 2950 2950 100 100 200 9550 9550 6100 150 6250 4375 1875 7350 150 7500 5250 2250 8600 150 8750 6125 2625 9850 150 10000 7000 3000 31900 600 32500 22750 9750 Week 2 Week 3 Week 4 Total

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REFERENCES

What is the Growth of baking in the Philippines? Blurt it. Accessed from<http://philippines.blurtit.com/q6617818.html>.Date Accessed August 23, 2012 Red Ribbon Website.Accessed from <http://www.redribbonbakeshop.com.ph>.Date Accessed August 23, 2012 Cakes. Bake Info. Accessed fromhttp://www.bakeinfo.co.nz/Facts/Cake-making. Date Accessed August 23, 2012 Starting a Bakery or Bakeshop Business Guide. EntrePinoysAtbp. Accessed from <http://www.mixph.com/2009/05/starting-a-bakery-business-guide.html>.Date Accessed August 23, 2012 Gonzales, D. April 22, 2012.Top Three Filipino-Owned Bakeshops in the Philippines. Accessed from <http://www.articlesbase.com/gifts-articles/top-three-filipinoowned-bakeshops-inthe-philippines-2209852.html>. Date Accessed August 23, 2012 Charlotte (dessert).Accessed from<http://en.wikipedia.org/wiki/Charlotte_(dessert)>.Date Accessed August 23, 2012

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