TAPIK TACOFFEE

I. Executive Summary

“Tapiko Takopi, Tapiko Takopi, Tapiko Takopi”, get ready to make your tongue twist with

the enticing flavour and experience you can’t resist. Bombarded with stress in school and in

work? You need a place to go to and release your stress? If the answer is yes, then what are you

waiting for go to Tapiko Tacoffee Café. It is the perfect place for you and for everyone. With

the strong family ties of Filipinos, our café is a Filipino-themed cafe that value Filipino families.

Tapiko Tacoffee Café is a business that offers superior products and services. It is not just an

ordinary café because we built it with the heart to gather families, friends and workers and to

showcase Filipino culture, each and every one must be proud of. The set of services we offered

includes Pasalubong Center, Functional Hall, Artificial Falls, Mini Library with Photo booth and

Sing and Dance performers. For Tapiko Tacoffe Café’s products, we offer Filipino cuisine.

Currently, our café has four branches in Quezon Province located at Tayabas, Pagbilao, Lucban,

Atimonan and Gumaca. The mentioned places are tourist spot here in Quezon that is why Tapiko

Tacoffe Café easily branched out in these places.

As of now, Tapiko Tacoffee Café is planning to expand and grow its operation. Due to

increase in demand, from Quezon Province, the company is aiming to bring the sensational café

to the other parts of the country specifically on Metro Manila and Cebu City. The company is

working on the whole process of business expansion encompassing product and service

development, franchise ownership to other entrepreneurs and staffing of personnel.

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II. Introduction, Background and SWOT Analysis

A. Introduction

1. Vision and Mission

Vision

In 2035, Tapiko Tacoffee Café is a well-known Filipino – style coffee shop in the

Philippines for its consistency in providing premium quality of coffee and services while

maintaining a good customer relationship. Tapiko Tacoffee Café supports the local community’s

products, empowers employees and advocates of environment preservation.

Mission

 To support the local products especially the products from Quezon Province

 To provide the consumer high quality products and services in an affordable price

 To be an environment friendly coffee shop that is for everyone

 To train and empower employees in order to provide an excellent customer service

B. Background

Tapiko Tacoffee Café, a Tapiko Corporation limited liability company, sells coffee, other

beverages and snacks in its 2,300 square feet premium and Filipino-themed café at its branches

located at Brgy. Ibabang Pulo Pagbilao Quezon, Brgy. Wakas Tayabas City, Lucban near Kamay

ni Hesus, Brgy. Tabing Dagat Gumaca Quezon and Brgy. San Andres Bondoc Atimonan

Quezon.
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Market Research
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C. SWOT Analyses

Strengths:

1. Customer Satisfaction

Tapiko Tacoffee Café offer services and products that highly satisfy our

customers which in return keeps their loyalty. In Tapiko Tacoffe Cafes, there are various

services provided to customers. Our company proudly presents:

 Relaxing artificial falls

 Pasalubong Center

 Mini library and Photo booth

 Tata Piko’s Performers

 Functional Hall

These were all inspired on Filipino ways of relaxation.

2. Filipino Culture Advocate

Tapiko Tacoffe Café was built as a place where you can relax while reminiscing

the old days. Its design features an old Filipino House bringing their purely Pinoy spirit.

The cafe always reminds them the simple but joyful atmosphere inside a Filipino home.

3. Corporate Social Responsibility (CSR)

Tapiko Corporation actively participates on their Corporate Social Responsibility.

The company ensures that they do not harm the environment as they operate.

Furthermore, the company strongly advocates the fight for sustainable management of

natural resources and proper waste management.

4. Customer Relationship Management (CRM)

Tapiko Corporation applies and sustains a good Customer Relationship

Management (CRM) by providing customer value and customer satisfaction. The

company are not just after the sales but we ensure that we keep satisfying our potential

customers and loyal customers to sustain our good reputation.

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5. Promotion

Tapiko Corporation actively employs both the traditional and modern approach to

marketing specifically organizing events, endorsement and advertorial and native

advertising.

Weaknesses:

1. Lack of brand equity

Compared to other cafes in the country, Tapiko Tacoffee Café still has a long way

on establishing strong positive brand equity. Brand awareness and brand recognition

within large sum of customers must be addressed in order to develop and grow brand

value.

2. Not tech-savvy

Establishing a reputation and performing the operation of the café with the use of

advance technology is challenging. Specifically, usage of apps are not yet considered.

Opportunities:

1. Tourist as Potential Customers

Taking advantage on tourists visiting the places where Tapiko Tacoffee Café branches

are located is a great opportunity for additional sales and building stronger public image. This

could make the business more innovative and creative in developing our products and services in

order to cater the needs and wants of the different segments of customers.
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2. Expansion

The company has the opportunity to expand its operations. From Quezon

Province, Tapiko Tacoffee Café will be going to dominate market in Metro Manila and

Cebu. Franchise of the café is also an opportunity for expansion.

3. Developed Service Experience

Meeting the needs of customers who are always on the go is also an opportunity

that leads the café on coming up to offer delivery services and express coffee station.

This is another service that the business will showcase as a response on the demand of

our customers.

Threats:

1. New and increase competition

The rising number of food and restaurant businesses in the location impose a threat when it

comes to customer loyalty for the product and services offered in Tapiko Tacoffee café. It could

decrease market share of the business.

2. Unfavourable government policies

As the business is planning to expand in the food industry, adverse government policies and

legal actions are inevitably needed to comply with. This could be a threat that may impose

hindrance in the smooth facilitation of the planned expansion.

3. Economic Issues

With the economy slowing down, it could affect the buying power of the people. In return,

customers might purchase first their everyday necessities or save first before purchasing and

rendering unnecessary wants that may apply to the café.

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III. Marketing Objectives, Strategies, and Tactics

A. Marketing Goals and Objectives

1. Goals

 To be profitable and well known

 To be customer-driven

 To enhance employees expertise and well being

2. Statement of Objectives

To be profitable and well-known

 By the year of 2027, Tapiko Tacoffee Café already established 15 branches in Quezon

Province and Metro Manila.

 To increase its profit by 20% by the end of 2028

To be customer-driven

 To improve the customer services and support to have a 30% increase of number of

customers by the end of 2028

 To hire new employees to increase productivity of work in 2028

To enhance employees expertise and well being

 To have a monthly training and workshop for the employees to help them to improve

their skills

 To have a monthly evaluation of the performance of the employees

 Empower the employees and give incentives to motivate the employees in improving the

performance.
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B. Segmentation, Targeting, and Positioning Plan

1. Segmentation Plan

Tapiko Tacoffee Café focus its marketing activities on reaching families, students and

faculty, teenagers and tourists in the location of our café’s different branches in Quezon

Province. Our market research shows that that these are the customer groups that are most likely

to avail café products and services.

The chart below outline the total market potential in number of customers.

Sales

Students and Faculty Teenagers Families

Tourists Other

Costumers are segmented to promote the café in a more strategic way and to enhance the

approach of the products to match the needs of the café’s chosen segments. We have set of

products and services that caters the need of family consumers such as affordable bundle meals,

for students we have budget friendly yet tasteful and instagrammable foods and beverages, For

workers who are on-the go we provides take-out and for our tourist customers, we showcase to

them our Pasalubong Center. Also, the menu of the café showcase lists of items that are

intentionally made and provided for kids, teens and adult customers.
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2. Targeting Plan

Tapiko Tacoffee Café cater to people who want to get their daily cup of great-tasting

coffee in a relaxing atmosphere. Such customers vary in age, although our branches’ locations

are close to tourist spot attractions it doesn’t mean that most of our customers are tourists. Our

market research shows that they are discerning customers that gravitate towards better tasting

coffee. Furthermore there are also students and faculty that considers our café to be a convenient

studying or meeting location, where they can relax, read and meet with friends without the

necessity to pay cover charges. When it comes to family customers, the café provides functional

hall for them during special occasions. For us, this provides a unique possibility for building a

loyal client base.

3. Positioning Plan

Tapiko Tacoffee Café position itself as a unique café where its patrons cannot only enjoy

a cup of perfectly brewed coffee, snacks and refreshing beverages but also spend their time in an

ambient environment. Comfortable traditional Filipino-themed sofas, chairs, tables, bamboo

decorated walls, artificial waterfalls, instagrammable mini library, photo booth, functional hall,

mood light, and Tata Piko’s sing and dance performers will help the customers to have a

relaxation, bonding time and enjoyment in the most Pinoy ways that will differentiate Tapiko

Tacoffee Café from incumbent competitors.

C. Product Plan

Tapiko Tacoffee Café offers its customers the best tasting coffee beverages in the area. This

is achieved by using high-quality ingredients and strictly following preparation guidelines. The

store layout, menu listings and marketing activities is focus on maximizing the sales of

affordable yet high-quality choco-coffee drinks. Along with the choco-coffee drinks, there are

espresso drinks such as caramel macchiato, café mocha, latte, cappuccino and other espresso

drinks which are purely made from Philippine-sourced coffee beans. There are also brewed
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coffee like kapeng barako and nutritious teas as well as some refreshment beverages (smoothies

and milk teas) are sold in the café. Tapiko Tacoffee Café also offers its clients Filipino pastries,

pastas, and snacks.

For customers who prefer to buy take-outs and “pasalubong”, we have our Pasalubong

Center where they can buy set of pasalubong products. Other services offered in the café

includes our artificial falls which is an outdoor dining area. We also have our mini library filled

with Filipino authored books, both fiction and non-fiction. Within our mini library is a door

opening to our photo booth room which are filled with famous Filipino characters where

customers can take pictures anytime. What’s more is that, our café also provides a functional hall

which customers can reserve for special occasions like birthdays and family gatherings

(reunions). Lastly, the café showcase sing and dance performers called Tata Piko’s performers

that will serenade the customers with OPM songs and liven up their mode with their traditional

and modern Filipino dances.

D. Pricing plan

Tapiko Tacoffee Café is committed to maintain long term relationship with the customers

and maximize their buying strength. Thus it has kept the prices of the food and drink items

affordable. This has helped to attract more customers to the café and effectively reach different

segment of them. Through this, the competitive advantage of the café is enhanced.

The pricing strategy of the café also take into account the cost incurred in producing the

foods and drinks offered. For example, in a cup of coffee, in pricing we take into consideration

the cost-plus or mark-up pricing strategy. However, as market conditions also influence our

pricing strategy more directly, we also use competitive pricing strategy specifically penetration

pricing that charge less than competitors to lure customers.

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Originally, menu is provided to the customers to look into. There is a separate menu for kids

(7 years old to 12 years old) and separate menu for people visiting with families and friends (18

years old and above). The cost in producing each item in the menu is use as a basis in coming up

with the mark-up price. Consequently, prices on the menu ranges between Php 50.00 to Php

300.00.

Other pricing strategies includes bundle pricing. The café bundle several items together take

for example, we normally charge Php 50.00 for kapeng barako and Php Php 75.00 for our

pastries like “budin” but we offer them together for Php 115.00. Customers will see this as a

bargain and it help increase our sales. Also, as an established café in the area of Quezon

Province, we also use customer loyalty discounts. We offer customers freebies and coupons. We

also offer membership discount cards which customer use to save points and exchange points

with its corresponding menu item. The café also grow customer loyalty by offering our “buy 9

get one free” punch cards.

To stay profitable and to maintain customer relationship, Tapiko Tacoffee Café increase the

price of the specific drinks and sizes rather the raising the price of whole lot of food and drink

items in the menu. The increase in price of the food and drink items are also communicated to

the customers in order to manipulate their perception. The hike on the price of food and drink

items is based on the analysis of the willingness of the customers to pay for the product.

E. Place and Distribution plan

All service and products in the cafe will are provided at all Tapiko Tacoffee branches in

Quezon Province. Available branches are located at: Brgy. Ibabang Pulo Pagbilao Quezon,

Brgy. Wakas Tayabas City, Lucban near Kamay ni Hesus, Brgy. Camohaguin Gumaca Quezon

and Brgy. San Andres Bondoc Atimonan Quezon. The management is planning for expansion of

the café, going outside from the locality of the province to Metro Manila and Cebu.
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The unique aspects of our business include individual product selection, quality assurance

and high-quality full service distribution. Our strategy is to focus 100% of our efforts on the

market for high-quality coffee drinks, other beverages and foods in areas where our branches are

built. By focusing all of our effort and energy on this particular areas, we will continue to

develop and maintain a leadership position.

The Tapiko Tacoffee Café will offer the best, most highly personalized, traditional

Filipino touched, service in the market place. We will go out of our way to make sure that our

customers know that they truly matter to us. Sales representatives and in-house personnel who

deal with customers will be carefully trained and given wide latitude ensuring that customers are

always satisfied.

F. Promotion plan

Personal selling

Personal selling will remain as our most important means of promotion. This is to ensure

that their needs are being met and exceeding their wants and expectations. We intend to prioritize

customer service and make it a key component of our marketing programs. We believe that

providing our customers with what they want, when and how they want it, is the key to repeat

business and positive word-of-mouth advertising.

Advertising

Tapiko Tacoffee Café has also identified several other means of advertising. The café

will send news to local media and press in order to try to get product and company feature

coverage in front of the eyes of our customers-as well as end consumers and to highlight offering

of special deals for local customers wishing to visit the stores. As a more straight forward

advertising, effort, Tapiko Tacoffee Café will have tv and radio advertising as well as flyers and
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posters. Social media will be also utilized, specifically by creating facebook page, instagram and

twitter account. There will be also websites where anyone can visit.

IV. Estimate Expected Results and Alternative Plans/Mixes

The chart and table below outline Tapiko Tacoffee Café’s projected results of operation.

GENERAL FORECAST

Sales Current Year Year 1 Year 2 Year 3

(2019) (2020) (2021) (2022)

Coffee Php 18, 441, 552 Php 20, 285,707.20 Php 22,314, 277 Php 30,525,400
beverages

Pastries Php 7, 683,980 Php 8,420,800 Php 9,297,615 Php 9,823,915

Pasalubong Php 4, 610, 388 Php 5, 071,200 Php 5,578,569 Php 6,578,750
Products

Total Sales Php 30,735,920 Php 33,777,707.2 Php 37,190,461 Php 46,928,065

Promotions used in the cafe highly contributed in the sales forecast of the business in the

following years. This contribution was in the shown percentages.

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Sales (current year:2019)

Advertising Personal Selling Other

11%
27%

63%

Sales (year 1: 2020)

Advertising Personal Selling Other

13%

34%

53%

Sales (year 2: 2021)

Advertising Personal Selling Other

15%

43%

43%
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Sales (Year 3: 2022)

Advertising Personal Selling Other

12%

30%
58%

Alternatives will be implemented in case results of the above mentioned plan are not

what are expected.

The table show alternatives to be implemented:

ALTERNATIVES
PRODUCT PLAN
 Developing new product that respond
and adjust to the changes on taste and
preference of customers.
 Improving services that will highlight
the customers’ needs and wants
 Developing products by adding new
value

PRICING PLAN
 Pricing at a premium
 Psychology pricing

PLACE AND DISTRIBUTION PLAN

 Discover new market
 Redesign packaging

PROMOTION PLAN
 Building public relation
 Direct marketing
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V. Financial Plan

TAPIKO TAKOPI CO.

Balance Sheet
As of December 31, 2018
ASSETS

Cash and cash Equivalents 2,000,000

Trade and other receivables 100,000
Inventory 200,000
Prepaid Assets 50,000
Total current assets 2,420,000

Property, Plant & Equipment 5,000,000

Total Noncurrent Assets 5,000,000

TOTAL ASSETS 7,420,000

LIABILITIES
Trade and other Payables 313,000
Short term borrowings 500,000
Current portion of long-term 50,000
Total current liabilities 863,000

Long-term borrowings 1,400,000

Total noncurrent 1,400,000

TOTAL LIABILITIES 2,263,000

EQUITY
Owner’s capital 2,000,000

TOTAL LIABITIES & EQUITY 4,263,000

TAPIKO TACOFFE CO.

Income Statement
For the month ended December 31, 2018

Sales Revenue
Coffee sales 396,000
Retail sales 67,400
Pastries sales 71,500
Food sales 65,100
Other beverages 24,000
Pasalubong center sales 134,500
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Net Sales 758,500

Other Revenue 3,218

Total Cost of Goods Sold 275, 980

Total Payroll expenses 209, 530

Total General & Administration Expenses 124, 650

Total Expenses 610,160

Net Income 151, 558