CUCINITA

A Project presented to the subject Pricing Strategy (P102)

By:

Group Members

Dagdag, Dyiane Joseph

Espiritu, Aljohn

Garcia, Rumina

Pamintuan, Trisha

Quiambao, Meliza Carla

Serrano, Allison Kaye

03/12/19
 II. Brief Description of the Canteen

The Cucinita Canteen was established on June 2013 and Ms. Yolanda Cortez is
the owner. The offered viands are Sisig, Chicken Barbeque, Kare-Kare, Chicken Fillet,
Menudo, Chopsuey, Fried Tilapia, Sinigang, Nilaga and Adobo. But Cucinita’s carrier
product/dish is the authentic “Sisig”. The canteen is located near DHVSU as a reason
that their target market is the students.

III. Current Price Evaluation

Pricing is the process whereby business sets the price at which it will sell its
products and services. Price is the value that is put to a product. And is the result of
calculations, research, understanding and risk taking ability. In our case, the actual or
the existing price of the Cucinita’s Canteen is profitable and reasonable for the both
parties. As a reason of, it covers indirect and direct cost of the canteen. On the other
hand, the computed price is less costly than the actual price; therefore we concluded
that the Cucinita’s Canteen’s pricing strategy is follow the leader or going rate pricing.

IV. Pricing Strategy To Be Implemented

As we grasp and interpret the information that we collected. Based on the given data
and the results, the pricing strategy that we will implement is odd number pricing-
because of psychological effects of it to the customers. For example the actual price of
Canteen is 22, but instead it will be 23.75 in this case, the price range is more appealing
and convincing to the part of buyers. This method aimed at maximizing profit by making
micro-adjustments in pricing structure.
V. Computations

A. Cost Of Utensils
Glass 3000
Plates 2000
Casserole 1800
Wok 1100
Frying Pan 2000
Tray 2500
Spoon and Fork 1000
Subtotal 13400
B. Equipment
Stove 2500
Table 3600
Chair 2300
Subtotal 8400

C. RAW MATERIALS UNIT COST

Pig Ears 1 ½ kg. 120

Pork Belly 2 ½ kg. 400
Chicken Liver ½ kg. 55
Soy Sauce 500 ml. 28.5
Vegetables 60 grams 25
Other Seasonings 333 grams 20
___________

Subtotal 648.5
Costing and Pricing:

Direct Materials 64.9

Direct Labor
Helper 20
Factory Overhead
Transportation Cost
Rent 25
Water Bill
Electricity 2.5
Gas 2.85
Contingency Cost 6.49
__________

Subtotal 126.74

Total Manufacturing Cost 777.24

Total number of servings 40
__________

Unit Cost 19.38

Mark-up (10%) 1.93
__________

21.311/22
 VI. Reflections

Running and establishing a business is never easy, it requires serious activity, great
effort and time. There are a lot of factors to consider when opening up a business like a
canteen. The factors are target customers, price, product and promotions.

It is important to know who will be the target market which in this case is the
students. If you know your target customers you will know the type of food that you will
offer and serve. Also, given this type of customers with very low willingness to spend on
the lunches because of limited allowances or “baon” with this, to gather more sales and
attract more students it is advantageous that the set price is low or is within the range of
their allowance.
It is also important to know the right “promotion strategy” to encourage them to eat at
your canteen instead of the others. Promotions like promos on food (buy one get one)
and additional on the season offering might be useful promotions.

As we interviewed the owner of Cucinita’s canteen, Ms. Yolanda Cortez; said that,
effort, passion, and time is necessary in sustaining and managing a business. She also
told us that, you will need not only sufficient but intense desire in serving and cooking
for the customers.
In addition, Marketing Strategies help to increase sales, bring new customer, get
existing consumers to buy more and improve customer’s loyalty. Ms. Yolanda thought a
strategy that will make her business renowned free soup, water and juice (for group, 5-6
person).
Furthermore, the price of the offered meals (student meal: 35, combo meal: 50) is
considered as a consumer friendly price.
VII. DOCUMENTATION