BUSINESS PLAN

Business Overview

a. Description of the business

Marnier Distillery Inc. is a new established manufacturing and commercial business
located in Silang, Cavite. The business focuses in distilling coconut sap into coconut vodka
that varies in different dual-flavors. The company aims to preserve the essence of
Lambanog and its production.

b. Major demographics, economic, social and cultural

The focus of the Marnier Distillery Inc. are certain areas in Cavite- Bacoor,
Dasmarinas, General Mariano Alvarez, Imus, Silang and Trece. This is because the
population in these areas comprises the majority in Cavite.

c. Major Players
Supplier plays a big role in achieving the company’s goal. They are responsible for
the raw material used for production.

Marnier Distillery Inc. will buy a coconut plantation in Silang, Cavite which will be
the main source of coconut sap, the basic material of the product. Purchasing coconut
plantation will be cheaper that purchasing coconut sap to individual supplier and it will also
ensure that coconut sap will be readily available when needed in production.

Bottles, crown caps and label will be supplied by KC Packaging and Bottle Direct
Supplier, a manufacturer and trader of plastic and glass bottles and bottle accessories
located in Sampaloc, Manila.

Fruit concentrates, fruit extracts, food coloring and chemical preservatives will be
supplied by NECO Philippines Inc., a huge trading company that deals with chemical for food
and non-food located in Sta. Cruz, Manila.

d. Nature of the business

Marnier Distillery Inc. belongs to manufacturing industry that distills coconut sap
into coconut vodka.

e. Trends in the business

The use of coconut sap as the basic raw material in light alcohol beverages makes
the product unique among alcoholic beverage. In addition, the product provides variety of
flavors that compromises the preference of the drinkers.
The Market
a. Market Segment

The main target of the company are people residing in cavite with age ranging from
18 and above. The product will be distributed to convenience stores, liquor shop and bars.

b. Product and Service

Sapprack is a ready to drink dual-flavored coconut vodka with a 14.4% alcohol

volume. It’s an alcoholic beverage that is unique and delicious in taste but stronger than the
usual light liquor drink. It comes with three different flavors, strawberry-dalandan,
pineapple-lemon and coffee-chocolate.

The name of the product is Saprrack. It is a hybrid term combining two words which
are “sap”, the based ingredient of the product, and “arrack”, a Hindi term used for all
distilled spirits. The name implies the nature of the business which is to manufacture quality
alcoholic beverage from distilling coconut sap.

c. Pricing and Distribution

The price of Saprrack is provided based on the costs incurred. Being new in the
market, Saprrack will have an affordable price. It cannot be offered on a lower price,
because the raw materials used are in high quality. A bottle of Saprrack flavored Pineapple-
Lemon, Strawberry-Dalandan and Saprrack Coffee-Chocolate will be sold at P32 to
wholesaler and can be sold to end users at 35-40 pesos.

d. Market Trend
The use of coconut sap as the basic raw material in light alcohol beverages makes
the product unique among alcoholic beverage. In addition, the product provides variety of
flavors that compromises the preference of the drinkers. With this, Saprrack will surely
capture bigger market share for it offers dual-flavors of Lambanog.

e. Implication of Risk Factors

 Dependency from suppliers- the company will be dependent on the suppliers of raw
materials because a delay in delivery of materials will cause a delay in the whole
production.
 Numerous Product Substitute- There are many companies that manufacture liquors
and because of that, the customers have many choices.

f. Planned Response
 Marnier Distillery Inc. will build good relationship with its supplier by ensuring that
the materials purchased will be paid with the right amount and on the agreed time
  Marnier Distillery Inc. will increase customers’ awareness of Saprrack through
promotions and advertisements, like social media advertisements, giving discounts
in introduction stage and posting tarpaulins in distribution channel
The Competition

a. Competition and Type of Competition

According to the Department of Trade and Industry Region IV-A, there are no other
companies that manufacture Lambanog in Cavite. The coconut vodka being sold in Cavite
are distributed from Laguna and Quezon Province.

The proposed business will be competing with the existing liquor industry. Saprrack
will enter into a market characterize by monopolistic competition. This is a common market
structure where many competing producers sell products that are similar but differentiated
from one another.

b. Competitor’s Strengths and Weaknesses

Liquor industry is a monopolistic competition. There are many firms, small or large
are engaged in this industry. In this type of industry, there are alternative alcoholic
beverages available in almost all retail stores. Substitute products include beer, gin, brandy,
vodka, and whisky. They became the substitute because of their being popular and trusted
in the market. These products come in different sizes and varieties, and prices are either
cheaper or at par with the average price of Lambanog. The customers are willing to
substitute especially if the price of the substitute falls.

c. Competitive Advantage
Saprrack is a one of a kind drink. It is a ready to drink dual-flavored Lambanog
containing 14.4% alcohol content. It is the first one to come in the market which serves as a
competitive advantage among any alcoholic beverages.

In addition, Marnier Distillery Inc. is the first distillery of Lambanog in Cavite which
as well serves as a competitive advantage for it will allow personal touch to its target
market.