I.

Executive Summary

Food is the most established product of all time in the world of business. Banana-Oatmeal

Pancake will provide a combination of excellent food and value of pricing with health benefits.

Banana-Oatmeal Pancake is the answer to an increasing demand for bread-type but sugarless to

be consumed during your break-time. In today’s highly competitive environment, it is difficult to

differentiate one product to another. So, it is better to make something new that can benefit your

customers.

Our proposed product will be sold in front of the Old main building at Saint Ferdinand

College which is the only Catholic Educational Institution located in Ilagan City, Isabela.

In front of the old main Building is the perfect place to sell the product because our aim is to

give them the benefits of our product especially for the staff, faculties and students. Pancakes are

a natural choice when you want to treat yourself breakfast.

Banana-Oatmeal Pancake is a partnership business wherein the capital will come from the

members and won’t have to hire workers because the partners themselves will take charge.

Here in Ilagan we don’t have any competing stores who sell the same product as we do. So

that we shall give our customers the pancakes they won’t find anywhere else, a pancake they

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won’t forget. We will serve them the “mabango, masarap at masustansya”. Our pancakes will be

worthy that shall going to known as one of the healthiest pancakes in the world.

Our Banana-Oatmeal pancakes are “mabango, masarap at masustansya”. Not only does it

smell amazing but it’s also delicious and nutritious wherein you won’t think twice to buy. Our

starting capital is 10000; 5200 for tools and property; 1200 for the license and the remaining cash

is for the raw materials and other expenses.

We have considered learning institutions, other business and passer-by and walk-ins as the

projected product could be sold. Saint Ferdinand College has more or less 500 total number of

staff, faculties and students during the intramurals. We will also accept delivery and orders. In

terms of promotion, we will give a free addition of syrup. we offer the best Banana-Oatmeal

pancake in the campus. Our pancake will be P 8.00 per piece.

We have conducted our market Count and 10% will be our target market for our pancake

with 60 persons which leads to a sale of P 480.00 a day. And 15% for our banana with 5 kilos

and have a sale of P 60.00; 15% of oatmeal with 1000 grams and have a sale of P 60.00 a day.

The product will provide socioeconomic aspects: (1) Gives better quality of life (2) Give

benefits to environment.

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 II. Study Background

A. Introduction

Food is the most established product of all time in the world of business. Banana-

Oatmeal Pancake will provide a combination of excellent food and value of pricing, with

health benefits. Banana-Oatmeal Pancake is the answer to an increasing demand for bread-

type but sugarless, to be consumed during your break-time. In today’s highly competitive

environment, it is difficult to differentiate one product to another. So, it is better to make

some new that can benefit your customers.

Saint Ferdinand College is the only Catholic Educational Institution located here in

Ilagan City, Isabela. It is one of the leading educational Institution in Isabela duly

recognized by the Commission on Higher Education (CHED) and Philippines Association of

Colleges and Universities Commission on Accreditator its formal operation in the School

Year 1951-1952 up to now with classes offering from Kindergarten to College Level.

At present, Saint Ferdinand College has one satellite campus in Cabagan in the same

province.

In front old the Old main building is the perfect place to stall the product. Most students

passing the building will notice smell of the pancake. I don’t think someone will find the

Banana-Oatmeal pancake tasteless after they taste one. We can pair the pancake with our

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 coffee in the morning, or while taking your coffee break in your office and even in your

lunch or during your dinner when you are on a diet.

The stall location of our proposed product would be along the pathway to be convenient

for our customers.

B. Mission and Vision

MISSION

One of the most sought product for it serves the most nutritious, delicious and

beneficial food at affordable price with quick service. We always maintain a strong

relationship of trust and strict standards with our supplier and customer.

VISION

To build and maintain a customer-oriented culture that will encourage and nurture

service excellence through cleanliness, quality and value to most the expectations of our

customer. Building a friendly environment where customer would love to eat.

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 C. Product/service offerings

Banana-Oatmeal Pancakes

Add ons:

Crushed Banana

Maple Syrup

Chocolate Syrup

Buy 3 free 1 add ons.

III. Opportunities and Threats

The demand of the staff, faculties and students as of the 2nd day of selling increased to

60 pieces of sold product from 60 pieces in the 1st day. This is also considered an

opportunity because increase in demand can also be an increase in profit.

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 IV. Microenvironmental Analysis

A. The Product

Our product is made up of banana, oatmeal, eggs, cinnamon and vanilla mixed

together to make a pancake with syrup toppings like chocolate syrup and condensed

milk.

B. Suppliers

Our main suppliers are from the public market for the banana and for the other

ingredients are from SaveMore Supermarket Calamagui 2nd branch.

C. Marketing Intermidiaries

SUPPLIERS BOOTH/STALL CONSUMERS

(Public (Located at St. (SFC students,
Market, Ferdinand teaching and
Savemore College- Ilagan non-teaching
supermarket) Campus) staaffs)

D. Customers

Our customers are the students, teachers and non-teaching staffs of Saint

Ferdinand College- Ilagan Campus.

E. Competition

Pastry/bakery businesses around area.

F. Publics

We, Filipinos are after the quality and benifits of the food we eat and our product

is perfect for it for it is nutritious and delicious in affordable price.

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 V. Strengths and Weaknesses

Strength

 The product is new in the area.

 Affordable price with health benifits

Weaknesses

 Lack of experience when it comes to business.

 The price may lead the buyer doubdful for they will think that we can’t give them the

full benifit of the product.

VI. The Market

A. Market Size

EST. # OF
PLACE POPULATION TARGET MARKET PRODUCTS TO BE
(6%) SOLD(1:2)
SFC, IECS 3000 180 360

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 B. Market Needs

 New product

 Insists upon a clean, friendly, and attractive environment

 Wants variety and new flavor

C. Market Trends

Chart Title
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

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VII. Marketing Objectives

 To be known 100% in campus a best seller of health benefits pancakes by the end

of the month October 2018.

 Put up our own pancake house.

 To be able to discover our own flavor of coffee that is a perfect pair to the

pancake.

 Increase sales for about 10-15%.

VIII. Marketing Strategies

A. Product/service strategy

1. Target market

Students in campus during Intramural 500

By gender:
Male 39.9%
Female 61.1%
By marital status: Single 73.5%
Married 27.5%
By Age:
Below 12 30.6%
12 - 16 25.3%
17 - 20 16.7%

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 20 above 37.4%

500 Students in campus during Intramural

x .611 (decimal equivalent of the percentage of the total number of

students who are female)

x 1.00 (decimal equivalent of the percentage of the total number of

students who are single and married )

x .0683 (decimal equivalent of the percentage of the total number of

students who are below 12 and above 20)

209 Target market size

2. Brand positioning

“Mabango, masarap at masustansya.” Banana-Oatmeal pancake is known as

nutritious pancake. Not only is it satisfying but it’s also good for our system. Just

the smell alone can make you wanting more.

B. Pricing strategy

P 8.00 each and free add-ons

C. Distribution strategy

You can avail our free delivery when inside the school campus. You will

add a delivery fee when more or less in 100 meter away from the stall location.

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 D. Promotions strategy

For every three (3) pancakes there is a free ons.

IX. Tactical Implementation

Tactics Operating Details Timetable

Stall will be located in To accommodate the customers September 2018

front of Old main building walking along the pathway

Promoting new flavor of To satisfy and give enjoyment to January 2019

pancake customers

Open new stall to be locate To share the hidden nutritious June 2019

in some other school here pancake of an ABM students of St.

in Ilagan Ferdinand College

X. Marketing Budget

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 Marketing Budget, 2018

Point of purchase materials P 5561.00

Advertising expense P 150.00

Sales Promotion P 120.00

Total P 5831.00

XI. Feedback and Control

The final tally of the survey is rated 4.1 over the average of 5 points. We will provide other

choices of sauce/toppings because it is the one that is rated low.

XII. Financial Projections

Major Assumptions:

1. As projected in the market count, we assumed that the possible customer will be 180

and will buy 2 pieces of pancake per day with a Pancake sale of P 2,880 a day, 57,600

a month and P 691,200 a year.

2. The sales for the product will increase by 8% for the second year and 10% for the

third year.

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 3. Compensation for the seller is based on commission of 1 peso per piece of the

product.

4. Depreciation expense is based on 3 years useful life.

5. Rent expense is constant for the amount of 4,800 a year.

6. Utilities expense is projected for the amount of 6,000 fpr the first year and will

increase by 8% for the second year and 10% for the third year.

Pre-Operating Balance sheet

7. Advertising expense is based on 0.6 for each leaflets for the total of 2000 leaflets per

year with a total cost of P 1,200.

8. Business permit expense is amounted of 1,200 a year.

Pre-Operating Cash Flow

Cash Receipts
Initial Investment 15,000
Cash Disbursement
Utensils and Equipment 6,000 (6,000)
Balance 9,000

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 Asset
Cash 9,000
Utensils and Equipment 6,000
Total Asset 15,000
Liabilities and Capital
Liabilities 0
Capital 15,000
Total Liabilities and Capital 15,000

Income Statement
2018 2019 2020
Sales 691,200 746,496 821,145.6
Cost of Sales 473,472 511,349.76 562,484.74
Gross Profit 217,728 235,146.24 258,660.86
Less: Operating Expense
Commission Expense 86,400 93,312 102,643.2
Utilities Expense 6,000 6,480 7,128
Rent Expense 4,800 4,800 4,800
Depreciation Expense 2,000 2,000 2,000
Advertising Expense 1,200 1,200 1,200
Business Permit 1,200 1,200 1,200
Total Operating Expense (101,600) (108,992) (118,971.2)
Net Income 116,128 126,154.24 139,689.66

Statement of Cash Flow

2018 2019 2020
Cash Flow from Operating activities
Receipt
Sales: 691,200 746,496 821,145.6
Disbursement:
Ingredients 473,472 511,349.76 562,484.74
Commission Expense 86,400 93,312 102,643.2
Utilities Expense 6,000 6,480 7,128

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 Rent Expense 4,800 4,800 4,800
Advertising Expense 1,200 1,200 1,200
Business Permit 1,200 1,200 1,200
Cash Inflow from Operating Activities/Balance 118,128 128,154.24 141,689.66
Add: Beginning 9,000 127,128 255,282.24
Ending Balance 127,128 255,282.24 396,971.9

Statement of Financial Position

Asset
2018 2019 2020
Cash 127,128 255,282.24 396,971.9
Utensils and Equipment 6,000 6,000 6,000
Accumulated Depreciation (2,000) (4,000) (6,000)
Total Asset 131,128 257,282.24 396,971.9
Capital And Liabilities
Liabilities 0 0 0
Capital 15,000 131,128 257,282.24
Retained Earnings/Net Income 116,128 126,154.24 139,689.66
Total Owners Equity 131,128 257,282.24 396,971.9

Financial Ratio
2018 2019 2020
Gross Profit Ratio 31.5% 31.5% 31.5%
Operating Profit Margin 16.8% 16.9% 17%
Net Profit Margin 16.8% 16.9% 17%
Return on Assets 88.5% 49% 35.2%

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 Initial investment 15,000
Utensils and Equipment 6,000
Business Permit 1200 (7,200)
7,800

Cash 9,000
Utensils and Equipment 6,000
Capital 15,000

Ingredients
30kls. Banana 330
(500g x 6 pcs.) Oatmeal 384
90 pcs. Egg 225
300 ml Vanilla 72
Cinnamon 216
6 Chocolate Syrup 510
3 Condensed Milk 87
Packaging 150
Total 1,974

Production Cost
Order per day 1,974/ 360=5.48
Production cost per/unit 5.48

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 Production Cost/year 5.48 x 360 units x 20 days
x 12 months
=473,472

Sales
Price per unit 8 pesos
Per day 360 x 8 =2,880
Per year 360 x 20 days x 12 months x 8
=691,200

Rent Expense
Daily 20
Monthly 20 x 20 days=P 400
Yearly 400 x 12 months=P 4,800

Depreciation Expense
Tools 200/3 years=66.67
Blender 1,800/3 years= 600
Toaster 4000/3years= 1,333.33
Depreciation Expense/year 2000

Utilities Expense
Monthly 500
Yearly 500 x 12 =6,000

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 Commission Expense(P1 per piece)
Unit Sales a Month 360 x 20 = 7200
Unit Sales a Year 360 x 20 x 12= 86,400

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