I.

Background of the Study

IA. History MANILA, Philippines Good nutrition is easily achieved by eating the right kinds of food and eating them in the right proportions. It requires implementing a wellbalanced diet and avoiding the tendencies of overeating.If one wants to have a healthy body, one must know the right nutrients that the body needs. Healthful diets help children grow, develop, and do well in school. They enable people of all ages to work productively and feel their best. Nutrition has a direct effect on overall health. A bad diet will provide too few calories, not enough vitamins and minerals. What people eat can also help reduce the risk of diseases such as heart ailments, certain cancers, diabetes, stroke, and osteoporosis. Overeating and malnutrition are two things which can both lead to poor health. Eating right can reduce the risk of obesity, high blood pressure, high blood cholesterol, and diabetes.A healthy diet will give your body the right amount of energy, enough raw materials and all the little helpers you need to stay healthy. In a 17-country research done by a British organization, Oxfam International, the Philippines was found to be one of two countries, the other being India, which were most concerned about nutrition. The survey said nutrition was among the top consideration of 63 percent of Filipino respondents in choosing the food they eat. Healthy eating habits are beneficial to the nations well-being and now that Filipinos have a better idea of how nutrition is beneficial to their health, the next steps will allow the population to better their lives. ABS Salute was founded by three women partners namely Giah Bolina, Nina Pagkaliwagan and Ma. Ivy Leland Opulencia. The reason behind why they chose this kind of business is that they foreseen potential market because people nowadays are health conscious. They want to engage a business that caters both the consumers interest in fitness and healthy foods.

IB. Current Conditions

Today, more people are health conscious and are looking for healthy alternatives from the food they eat to the activities they engage to. They are more particular to the food they eat and the food establishment they go to. Most people nowadays are also more active, they engage to more physical activities like going to the gym to exercise, weightlifting, aerobics, yoga and more.

IC. Concept ABS Salute is a fitness club and a caf concept. It offers fitness services for those people who want to become physically fit and a caf that offers a comfortable, upscale ambience, replete with its original recipes which are healthy and flavorsome like fresh grilled sandwiches, salads, pastas. It also offers beverages that are healthy at the same time refreshing like milk teas, fresh juices, and coffees.

ID. Overall Objectives The ABS Salute aims to provide the best fitness activities it could offer. It attempts to offer healthy foods and beverages which will be helpful to health conscious people. It also aspires to become the number one fitness center and caf for the upcoming years.

IE. Specific Objectives

To acquire 200+ members of the fitness gym and additional customers of the caf by the end of the first year of operation. To increase the customers by 30% in every quarter of a given year. To become the number one fitness gym along with a health oriented caf for all the health conscious people.

To offer high quality services and products with a great ambience at reasonable prices. A long term plan aimed to expand and open an establishment every two years. (Branch out)

II. Market Analysis/Market Research

Sta. Rosa is a dynamic city located in the rapidly growing Northern part of Laguna. The city is known for its excellent educational institutions, beautiful neighborhoods, easy access to freeways and a diversified economic base. From a residential perspective, Sta. Rosa features master-planned communities, luxury executive homes, older residences in tree-lined neighborhoods and affordable starter housing. A robust economy, attractive residential developments, exciting commercial and business growth, dynamic neighborhoods and abundant civic pride combined with outstanding city services Sta. Rosa has all of the amenities necessary for ensuring a quality lifestyle. Sta. Rosa has been one of the fastestgrowing cities in one of the fastest-growing areas in the Philippines over the past years. The city's population grew (%) percent during the 1990s. Sta. Rosa is the most convenient and ideal location if you want to be near the metro as well as the province since its only 30 minutes away from Manila. The fact that Sta. Rosa is part of a vibrant suburban area makes it a very attractive place to live and establish a business. ABS Salute will be operating within the fast-casual niche of the Caf and fitness industry. They will be competing against other segments within the industry such as fast food as well as more traditional sit down restaurants.

IIA. Competitive Factors

Competition comes from major chains and from various independents. ABS Salute faces competition from a variety of competitors: Fast foods: Offers the convenience of fast service. The food product is not competitive, but people are often willing to sacrifice quality for

convenience.(McDonalds, Jollibee) Sit down dining: For customers that have the time to have a leisurely meal. Food service takes longer and the menu options are more extensive. (Pig Out, Italianis, Crisostomos, Contis, Sea Food Island) Sandwich/burger and Pizza shops: Considered to be part of the fast food segment, they are direct competitors of ABS Salute as their food product is healthier than the fried alternatives of fast food. This competition comes primarily during lunch hours. (Brothers Burger, ArmyNavy, Shakeys, Big 30 and Yellow Cab). Caf and pastry shop: For customers who likes pastries, cakes and coffee while relaxing in a comfortable spot. (Starbucks, Contis Restaurant and pastry shop, Bread Talk) Grocery markets: Serving prepared foods.(Rustans, Robinsons supermarket and South supermarket) Metro Gym: located at Paseo Uno Sta. Rosa Laguna; the only Gym located in the area. Location: The fitness center/caf is located near to work or home.

IIB. Market Segmentation ABS Salute will focus on two customer groups: Yuppies or young professionals. Health conscious individuals Coffee/ Tea lovers People that have less time to prepare meals, people going out to dinner to eliminate the need to prepare a meal and offers time to catch up witheach other.

IIC. Marketing Orientation For people on-the-go that have tight budgets who wants a fast, convenient and reasonably priced meals with good quality, Chinese Pandas products and services provides fast, convenient and good quality of products in a more ideal location to dine with regard to health and sanitation.

Strategies The marketing strategy will seek to first create customer awareness regarding the offered products, develop the customer base and further develop its products, a strategic alliance with other businesses which has the same demographic market as to ABS salute and work toward building strong customer loyalty.

Marketing alliance: Having a strategic alliance specifically a promotional alliance with Fitness First

Customer awareness: By Word-of-mouth advertisements By distribution of flyers. By using social networking sites like Facebook and Twitter

Customer retention: Giving incentives to loyal customers like discount vouchers, and freebies Credit tab Frequent buyer card

IID. Marketing Strategy The goal of the marketing strategy will be to raise awareness levels regarding ABS Salute and the offerings and value. The message will be that ABS Salute is a convenient, up-to-date, healthy fast-casual alternative caf and fitness center. ABS Salute will employ several marketing outlets: Print media advertising: Magazines like FHM, Esquire, Cosmopolitan, a monthly lifestyle/entertainment magazine. Flyers: Passed around to local businesses with coupons attached to introduce the community to ABS Salute and creating an economic incentive to try it. Social media: Facebook and Twitter will play a big role in promoting the business in the web. It is also the most cost efficient way to advertise.

The strategy of the sales effort will be to convert potential and first-time customers into long-term customers. This will be accomplished using several techniques.

Membership cards: Members of the Fitness center are entitled to get discounts and freebies when purchasing from the caf. Punch cards: After 10 meals purchased, the 11th will be free. Punch cards are an effective way of increasing sales from a specific customer. They are effective because they provide the customer with a sense of additional value; it gives the feeling of value with the free entree. People love getting something beyond what they pay for and the punch card provides this.

Concentrating on the customer's experience: Customers will not come back if they are not happy with their dining experience. All employees go through a comprehensive training process that includes training on how to offer the customer

the finest experience. The employees are empowered to resolve issues and are encouraged to seek assistance from the manager for a conflict that they are unable to resolve. Keeping close relationship with partners: Utilize the downtown hotel/convention business through developing and maintaining close relationships with the planners of upcoming conventions and their respective attendees in order to create a "private function/party" option for corporations visiting Sta.Rosa during the early part of the week, as well as encouraging individual visits by conventioneers later in the week.

IIF. Contingency Plan The company has planned for several undesirable scenarios, all of which are unlikely:

Potential Problem Overly aggressive and debilitating actions by competitors. A similar business establishment opens in the area and pulls customers from us.

Worst Case Risks May Include Determining that the business cannot support itself. Having to liquidate equipment to cover liabilities.

Solution: More aggressive promotional campaigns.

III.

Development and Production

IIIA. Research and Development Researches will be conducted for the succeeding years to determine what goods and services will be added to the business, what products are preferred by potential and existing and which of the existing products need improvement.Future researches will determine if the business needs to add variations in the exercises it offers. More nutritious foods are also needed by the business in order for it to expand its product line. By the help of the health conscious individuals, these shortcomings will be sufficed. For further improvement of the business, the Plan-Do-Study-Act Cycle will be adopted in order address the future concerns that the establishments would be struggling in the future. This is to enhance the establishments goods and services because peoples minds are dynamic which means they often look for something new.

IIIB. Production Requirements ABSsalute will buy from a select group of coffee farmers in Batangas for th e supply of coffee beans and tea. Direct sales relationships will also be established with fresh produce and meat distributors based at Padre Garcia Batangas. Negotiations are also underway to establish direct relationships with seafood suppliers on the Port of Batangas. The cafe will receive substantial discounts from artists and artisans participating in the manufacture of signature pieces of dinnerware, furniture, lighting, and sculpture to be featured at caf. As part of a marketing agreement with Studioplex merchants, the business will prominently feature their products in exchange for these discounted fixtures and equipment. Industrial stoves Blenders Industrial oven Coffee machines Refrigerators

Freezers Kitchen utensils Tables and chairs ABS' salute membership services are the following: ABS salute has a professional personal training staff. Our personal trainers provide the knowledge and expertise in designing and implementing a fitness program. Each trainer is AFLCA certified and has standard first aid and CPR. Beyond that each trainer has specific qualifications and training that enables them to provide each client with an individually designed program.

Treadmills Stepmills Steppers Upright and recumbent bikes Elliptical trainers Stairmaster Rower Bodytrek Gravitron Cross aerobic trainers. The caf will need kitchen equipment like stoves, blenders, oven, coffee machine, refrigerator and freezer, and kitchen utensils etc. The establishment will also need tables and chairs, decors, and umbrellas for the outside dining area. Raw food materials will be provided and supplied by Monterey meat shop; another area to be visited is the Batangas Port for the ideal place to purchase tuna and other sea foods that the establishment will need. This is to avoid excessive transportation expense.

IIIC.Service/ Production Process ABSsalute fitness center and caf will do an interaction process whereby the people from the two business segments would work together as one. The caf would also serve the customers from the fitness center by having a receptionist assisting and covering all the customers order. The food and beverages will be inspected by an expediter before it is out of the kitchen to be served to the customers both in fitness center and caf. The expediters role is to see to it that the food to be served is cooked evenly and is free from any contamination. ABS salutes supplies and training personnel for the fitness center will come from Fitness First Gym. ABSsalute will have a strategic alliance with the said company. Yoga and aerobics class will be done twice a week. While the trainers for weight lifting will be assisting the customers everyday of the week.

IV. Organization and Management IVA. Structure of Business

Leland Opulencia Marketing Manager

Giah Bolina Operations Manager

Nina Pagkaliwagan Financial Manager

Fitness Trainer

Cook

Expediter

Barista

Miscellaneous

IVB. Key Personnel Leland Opulencia Marketing manager Nina Pagkaliwagan Financial manager Giah Bolina Operations manager

The three of them are also in charge of recruiting employees as well as research and development.

IVC. Other Personnel Fitness Trainer Fitness center Cook Food preparation and cooking Miscellaneous Dishwashing, bussing, and cleaning Barista coffee and tea preparation Expediter Food inspection

In the business, there are three fitness trainers, one trainer is for yoga and the other two are gym instructors specifically for body building. Two cooks will be hired to accommodate multiple customers simultaneously especially during peak hours. In the miscellaneous personnel, six people will be dispensed. Two waiters for the caf, another is for the reception lounge of the fitness center, one busboy for the caf, a dishwasher and a janitor for the center. A barista will be hired for the caf. An expediter is also necessary for the business.

V. Financial Data This section will offer a financial overview of ABS Salute as it relates to the marketing activities. ABS Salute will address break-even analysis, sales forecasts, expense forecasts, and how they link to the marketing strategy.

Sales Forecast Sales will gradually increase with profitability being reached by the beginning of year two.
450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 average gross sales

Sales Forecast

Year

2014

2015

2016

Average gross sales

3,690,000

4,059,000

4, 4280,000

Pre-operating Expenses Total

Overall Salary: Commercial Space Rental: Building Establishment: Fitness Club Equipment: Caf Equipment: Raw Materials: Transportation: Electricity Expenses:

P216,000.00 P200,000.00 P800,000.00 P700,000.00 P500,000.00 P300,000.00 P100,000.00 P15,000.00 P 2, 831, 000.00