I.

Executive Summary

In 2002, Charlie Boghosian invented the Deep Fried Oreo by dipping it in pancake batter, deep-
frying it, drizzling it with chocolate syrup and Oreo, it has now become the carnival main stay and
cult favorite.

Pastry Mania is an open stall located at Upland, Kaytapos, Indang, Cavite. The stall will be open
from 8 am to 6 pm every day.

This store offers the all-time favorite cookies--fried. The needs of the target market urged the team
to put up the business. Pastry Mania was the first in town to offer low fat fried cookies. Where, the
consumers can choose the level of sweetness they wanted to have in their cookies. The fried
cookies can also be experienced in different flavors such as vanilla, chocolate and strawberry.

Part of the target market of the Pastry Mania includes students. Since, these consumers are only
present during most part of the year, decreasing the companys business during the off season. The
team decided to open a franchising of the store after 6 months of successful introduction of the
product in the market. Eventually, the products will also be delivered into business markets like
grocery stores and catering services.

The target market does have variety of needs to be addressed by the company. The consumers are
looking for new offerings in the market that will relieve their stresses that will also satisfy their
cravings while helping them maintaining their diet.

Like all of the businesses being established, Pastry Mania also have its competitors who are
offering cookies and other kind of pastries. These businesses are also located in the same town.
Thus, these are considered as the direct competitor of the company.

The team envisions an annual and long-term goals for the business. The company wants to achieve
a number of customers to come for the next years to come due to hooking up the curiosity of the
consumers. The rate of customer satisfaction will also become higher simultaneously with the
profit to be incurred. The vision of the company doesn't stop for an annual objective, the
opportunity for expansion of the business will also take part through franchising that will soon
make the company be well-known not only in the current town it is located but nationwide. Lastly,
the company aims to build up a corporate social responsibility that is important that a business to
have for a better feedback from the consumers and other business establishments and
organizations.

The company will have an initial capital of Php 75, 000 and a 50% of increase in its sales every
year. This vision will help the company cope up with the expenses of the company from the time
it started. The viability of the business will also mean growth in the market and new product to be
introduced.

II. Current Marketing Situation

Cookies are baked or cooked good that is small, flat and sweet. It usually contains flour, sugar and
some type of oil or fat. It may include other ingredients such as raisins, oats, chocolate chips, and
nuts. Innovative minds of the people nowadays introduced a new way of preparing the all-time
favorite cookies.

Deep Fried Oreos were first introduced by Charlie Boghosian, a 46-year-old Armenian settled in
San Diego, in 2002 at Los Angeles Count The Man Who Fries Everything. Charlie is a specialist
in deep fried food: "There are many other fried foods at the fair, but I specialize in it. I make it my
life," --- said by Charlie Boghosian. And serving it with powdered sugar. Since the debut of Deep
Friede, frog legs, etc.

In 2002, Charlie invented the Deep Fried Oreo by dipping it in pancake batter, deep-frying it,
drizzling it with chocolate syrup and Oreo, it has now become the carnival mainstay and cult
favorite.

Apart from the Deep Fried Oreo, he has also introduced new types of deep fried food every year
in different state fairs, for instance, Krispy Kreme chicken sandwich, Zucchini Weenie.

Pastry Mania is an open stall located at Upland Kaytapos, Indang, Cavite. The stall will be open
from 8am to 6pm everyday.

This store offers the all-time favorite cookies -- fried. The needs of the target market urged the
team to put up the business. Pastry Mania was the first in town to offer low fat fried cookies.
Where, the consumers can choose the level of sweetness they wanted to have in their cookies. The
fried cookies can also be experienced in different flavors such as vanilla, chocolate and strawberry.
Despite the similar businesses in the area, Pastry Mania will contain a few beneficial strengths to
make it more desirable than to its competitors. Pastry Mania can meet the needs of the consumers
requesting specific modifications to satisfy health and diet needs. The central location of Pastry
Mania will be an additional valuable aspect of the company, allowing it to be accessible to a large
market.

Part of the target market of the Pastry Mania includes students. Since, these consumers are only
present during most part of the year, decreasing the companys business during the off season. The
team decided to open a franchising of the store after 6 months of successful introduction of the
product in the market. Eventually, the products will also be delivered into business markets like
grocery stores and catering services.

The growth of Pastry Mania may be limited based on the location of the business for the first six
(6) months of the business. Being in a small town, the market size is much lower than if the
business were in a large city. The town in which it will be located has fewer tourist attractions, and
therefore a smaller tourism rate, than the nearby towns. However, the growing cookies trend is
very promising for the success of Pastry Mania Inc. The growth of the business will eventually
took place after a half year of observation and improvements. The company will be open to new
opportunities like branching out and attracting more of business markets that will let the business
incur a higher income.
A. Market Description
Table 1. Segment Needs and Corresponding Features/Benefits
Target market/segment
Children (consumer
market)
Students, teachers and staffs
Residents
(consumer market)
Health conscious people
especially elders
Grocery Stores (business
market)
Caterers (business market)
Needs Features/Benefits
Craving for sweets and Different variety of fillings
fillings Colorful fried cookies
Attractive foods color
Stress reliever Substitute for chocolates that
Snacks during and after can be used as stress reliever
work Different variety of cookies
Place for unwinding offered
Good ambiance for relaxation
Low sugar food content Low sugar and fat-free
cookies for maintaining their
sugar level and body fitness
New product to be offered Catchy brand name
in their stores Unique and attractive product
that leads to higher profit
Supplier for their new Unique and attractive product
product or dessert to be Used as souvenirs for the
offered in their service events they handle
B. Product Review

Table 2. Product Offerings of Pastry Mania

Product Characteristics

Fried Cookies Fried cookies are made with chocolate cookie that can be
varied in fillings coated with pancake mix and bread crumbs
with different colors, dipped in butter and fried to golden
crispy perfection.
Vanilla Fried cookie is made with chocolate cookie that has vanilla
fillings coated with pancake mix and bread crumbs with its
original color, dipped in butter and fried to golden crispy
perfection.

Chocolate Fried cookie is made with chocolate cookie that has

chocolate fillings coated with pancake and bread crumbs
mix with brown food color, dipped in butter and fried to
golden crispy perfection
Strawberry Fried cookie is made with chocolate cookie that has
strawberry in fillings coated with pancake and bread
crumbs mix with pink food color, dipped in butter and fried
to golden crispy perfection.
ManGraPleAnge A refreshment that is a mixture of mango, grapes, apple and
orange. Thirst quencher that freshen up your
C. Competitive Review

Table 3. Competitors Profile

Competitor Product Price

Bread impression Breads, cookies, doughnut, Bread- Php 5.00/piece
and pies Cookies- Php 30.00/piece
Doughnut- Php 15.00/piece
Pies- Php 40/slice
Julies bakeshop Breads, cookies, doughnut Bread- Php 5.00/piece
and cakes Cookies- Php 30.00/piece
Doughnut- Php 15.00/piece
Cake- Php 200.00-300.00
Curry mo to Breads, cookies and Bread- Php 5.00/piece
Bakeshop doughnut Cookies- Php 30.00/piece
Doughnut- Php 15.00/piece

III. SWOT Analysis

Table 4.SWOT Analysis of Pastry Mania

STRENGTHS WEAKNESSES
Easily marketable Limited funds available

Variety of flavor choices Low brand awareness

Quality over quantity

OPPORTUNITIES THREATS
Room for expansion/franchising Increased level of competition

Innovation Rising prices of raw materials

Unforeseen events
IV. Objectives and Issues

The company aims for long-term and annual goals that will be obtained as guiding principle for
the upcoming years. These objectives include:

A. Annual objectives

Hook the Curiosity of the Market. Curiosity of the market may lead to creation
of the relationship between the company and its targeted customers. As the
customer comes to their curiosity, they tend to be in contact with the companys
further status, characteristics and innovation.

Customer Satisfaction. Customers happiness may be obtained by producing

products that can truly quench the desires and cravings of the customers to be
served. By this, a business may become part of our customers satisfaction and may
bring them a smile and delightfulness. When customers are happy, that typically
means a business is operating effectively and can help the business defend on their
competitive issues.

Increase Revenue. Increasing revenue is one of the basic goals of a business for
their business years. This is also an obvious sign that the business is growing.

B. Long-term objectives

Establish Franchising. The business cannot fully grow when they stick only to a
certain locale or area. Towards further development, a business should explore and
influence other market for more set of experience that can help them to know and
handle things about their company more.

Provide corporate social responsibility. As the business grow, part of their

contribution to the community is to provide programs that can provide help other
person who are in need.
Issue

A normal business typically has issues in their business management and other aspects.
Pastry Mania considers issues regarding its market segment selection inclusively in selecting the
appropriate market segment to focus marketing efforts. In terms of products, issue arising in giving
the best satisfaction that they can cater to the customers is considered; along with this, customers
desires and perceptions are factors that the business should focus as well. Distribution channel of
the business further arises to an issue due to the customers accessibility to the area designated; by
this, the business should consider the achievability of its specified goals.

V. Marketing Strategy

Pastry manias marketing strategy is based on a positioning of product differentiation. Our

primary consumer target is students who need snacks that can satisfy their cravings for sweets and
can be used as their stress reliever. Our secondary consumer target is the residents living nearby
the store. This segment can be described demographically by age.

Our primary business target is groceries that need new products that can be offered in their
store and can gain more profit. Through this, they can help us in promoting our product and can
gain more customers.

Positioning

Pastry Mania positions itself as a competent, innovative, and customer-oriented company for
pastries. For the people who love to eat, the Cookie Monster is a fried oreo that provides great
pleasure for it satisfies their craving and hunger drive. With Cookie Monster, you can get the
best quality and healthy cookie at an affordable price.

A. Product Strategy

Cookie monster is a product out of oreo cookies filled with different fillings dipped in
pancake mix. It targets people who love to eat sweets but still considered to be a healthy snack.
Cookie monster comes with three flavors, vanilla, chocolate and strawberry. Our product will give
burst of flavor that will surely make you crave for more. Pastry Mania plans to expand the product
line to include an even variety of flavors and fillings

B. Pricing Strategy

The pricing strategy of the cookie monster will be on a cost-based pricing. It wil be based on the
cost of inputs in making the product. The cookie monster cost will be Php 25 per 3pcs (package).
We tend to sell it by package because we afford the manufacturing price of the packages. But we
assured that the price is lower than that of any other branded cookies. Price may vary if and only
if the price of the raw materials increased in the supplier's market.

C. Marketing Communications Strategy

Consumers are extremely health conscious today and we want them to know that it is possible to
abide by their diets without depriving themselves of the sweet delicacies they crave. This is the
message we will convey to our target market. To reach our audience, we market our new product
through print, electronic, and outdoor advertisements.

Print Media

One form of media we would use would be through fliers. The advertisements would be
placed in fliers that are directed towards the same demographics of our target audience.

Electronic Media

Another form of media we would use would be through facebook page and our website.
Since people can now easily know about trends through social media sites, it will be fast
and easy to promote our product. Our website will feature information about all of our
products, particularly the Fat Free OREO.

Outdoor Advertisements

We will display advertisements on tarpaulins in different places which will increase our
likelihood of reaching a large percentage of our customers. Reaching people who are
passing by will increase the possibility of immediate purchase.
D. Distribution Strategy

The company will be having intensive and selective distribution strategy. The company will be
doing an online, in-campus, and business market distribution. The distribution process for different
market aspect are as follows:

A. Online Distribution

B. Business market Distribution

C. Direct Distribution

E. Promotion Strategy

Information about Pastry Mania as well as cookie monster will be available in its Facebook page
and Instagram account. Marketing will be done mainly by the distribution of samples at the booths,
located at places with high consumer traffic. Discount coupons will also be attached to the cookie
bags that are used to package the cookies. It will be tied up with the different student unions in
nearby university to provide discount coupons in welfare packages. Digital marketing will also be
done, mainly through lifestyle social networks like Facebook and Youtube. It aims to set up as our
secondary sales channel and source of revenue.
F. Marketing Organization

Pastry Manias chief marketing officer, Sohfia Jesse Vergara holds overall responsibility for
all marketing activities. Figure 1 shows the structure of the eight-person marketing
organization. Pastry Mania has hired the best marketing agents to handle regional sales
campaigns, trade and summer sales promotion, and public relation efforts.

Sohfia Jesse Vergara,

Chief Marketing Officer

Coleen Jan Alexa Rodrin, Grace Ann Piedad, Giezel Ersando,

Sales Manager Advertising Manager Promotion Manager

Angelica Quialatan, Ivy Lopez, Patricia Kate Taganas,

Regional Sales Advertising Analyst Promotion Analyst

Mary Anne Lopez,

Regional Sales
VI. Action Program

The Pastry Mania Corp. will be introduced in May. The following are summaries of the action
programs we will use during the first six months of next year to achieve our stated objectives.

MONTH ACTIVITIES

JANUARY Brainstorming and Idea Generation

FEBRUARY Developing of Marketing Strategy

Processing of Legal requirements

MARCH Canvassing for raw materials, supplies and equipment

Hiring of employees and training

APRIL Advertisement Release

MAY Product Testing

Start of business operations

JUNE Business observation

JULY In-campus penetration

Improvement of store location

AUGUST
Opening of business franchising
Development of new promotions
SEPTEMBER

OCTOBER Promotional release

Development of advertisement

NOVEMBER Advertisement release

DECEMBER Distribution of products to business markets

Annual Report release
VII. Budget

Total first-year sales revenue for the Pastry Mania, 4000 is projected at Php60, 480 with an average
wholesale price of Php 50 per unit and a variable cost per unit of Php 28 for 4000 units. Break
even calculations indicate that Pastry Mania will become profitable after the sales volume exceeds
7061 units which we anticipate in around a year and a half.

Our break even analysis of Pastry Manias Fried Oreos assumes wholesale revenue of Php 50
per unit, variable cost of Php 28 per unit, and estimated first year fixed costs of Php 156, 000.
Based on these assumptions, the break even calculation is as follows:

Php 156 000

= 7091 units
Php50 per unit Php 28 per unit

This means that we can achieve our break-even point by selling 7091 units. After selling more than
the said units, profit will be incurred.

VIII. Control

The control environment will be a result of monthly employee meetings during which we will
discuss the current marketing activities, sales, promotional activities, and ideas that will lead to
improvement Minutes will not be necessary, but current facilitators will follow up on previous
topics and debate the value of current and future marketing programs. It is structured to enable us
to achieve the strategic goals we have set for ourselves, in terms of increasing overall revenue as
a result of differentiating our products and services from the competition. Our marketing team will
ensure that the plan is implemented to the best of their ability and with the highest levels of
efficiency and accuracy. Through these monthly meetings everyone should feel vested in the
decision making process, and in the long-term success of the company.