Finalpaper

MAPUA INSTITUTE OF TECHNOLOGY
1002 Muralla St. Intramuros, Manila
Crafts & Coffee

A business plan outline
In Partial Requirements for
Business Ventures in Multimedia
MAS136 (A1)
Submitted By:
GROUP 2
Avelino, Rocio Camille I.
Deola, Neil Derrick C.
Gaffud, Mark Christian C.
Habito, Maria Monica L.
Inventado, Charla Francesca G.
Ombrete, Jeff Hazel G.
Paredes, John Bruce H.
Penetrante, Ma. Cristiel J.
Queano, Andrei Nikolai S.
Rivera, Darla Louise V.
Wong, Gian Carlo S.
-Copyright @ 2016
TABLE OF CONTENTS
I. INTRODUCTION
II.
a. Name and Address of the Business
b. Name and Address of the Principals
c. Nature of the Business
d. Mission and Vision
e. Logo
f.
10
Tagline
g. Statement of the Financing Needed
10
h. Statement of the Confidentiality Report
11
EXECUTIVE SUMMARY
III. INDUSTRY ANALYSIS
12
14
a. Present Industry Situation
14
b. Future Outlook and Trends
25
c. Analysis of Competition
27
d. Target Market Definition
29
IV. DESCRIPTION OF THE VENTURE
34
a. Products / Services Offered
34
b. Size of the Business
36
c. Office Equipment and Personnel
37
d. Background of the Entrepreneurs
47
V. BUSINESS LAYOUT
45
a. Location Mapping
45
b. Floor Plan
46
VI. MARKETING PLAN AND BUSINESS STRATEGIES
45
a. Product / Service
47
b. Place
47
c. Price
49
d. Promotions
50
e. Business Strategies
54
f.
Product vs Pricing
56
g. Product Life Cycle
56
h. Boston Growth Matrix
58
i. Growth Matrix
58
VII.
ORGANIZATIONAL PLAN
a. Form of Ownership
62
b. Table of Organization
62
c. Roles and Responsibilities of the Members
63
VIII. RISK ASSESSMENT
IX.
62
64
a. SWOT Analysis
64
b. Contingency Plans
65
FINANCIAL PLAN
66
a. Projected Income Statement
66
b. Projected Balance Sheet
67
X.
APPENDIX
73
XI.
BIBLIOGRAPHY
76
I.
INTRODUCTION
A. Name & Address of Business:
The business is called Crafts & Coffee. Its a straightforward reflection of
what the business is all about and whats totally unique about ita crafts
studio wherein art-lovers, coffee-lovers, and anyone looking for something
new to try come together to learn different arts and crafts while enjoying a cup
of coffee. Not only is it easy to pronounce and remember, it would also
instantly attract coffee lovers, artists, crafts enthusiasts, hobbyists, or simply
those who would like to embrace their creative side or learn something new
while enjoying delicious cakes, frappes, or coffee.
The business will be located at 188 Maginhawa Street, Sikatuna

Village, Quezon City 1101, housed in a 300 square meters two-story studio.
The monthly rent for this space is at Php 65,000 per month. The location was
strategically chosen since it sits in the street dubbed as StrEat: Maginhawa
Food Park, a food and caf haven in Quezon City alongside other
restaurants and cafs. Maginhawa Street is frequently visited mostly by
students from nearby universities like University of the Philippines, Ateneo De
Manila University, and Miriam College. Moreover, even customers from
Manila and Katipunan come over to this area to try out new, unique, and
intriguing cafs and restaurants.
B. Name & Address of Principals:
Darla Louise V. Rivera

450 B Malaya St. Boni Mandaluyong City
Gian Carlo S. Wong
#78 Sta. Lucia, City of San Fernando, Pampanga
Rocio Camille I. Avelino
B22 St. Joseph Townhomes, Tandang Sora, Quezon City
Jeff Hazel G. Ombrete
2838 Javier Street, Gagalangin, Tondo, Manila
Mark Christian Caramancion Gaffud
728 University Tower 3, Unit-12N, Pedro Gil, Malate Manila
Andrei Nikolai S. Queano
#57 Laguna St. Bonifacio Village, Tandang Sora Quezon City
Charla Francesca G. Inventado
Blk 5, Lot 33, Mc Arthur Village Longos, Malolos, Bulacan
Ma. Cristiel J. Penetrante
426 R.A. Jose St., San Juan Balagtas, Bulacan
Neil Derrick C. Deola
2107 21st Floor, Manila Executive Regency, J. Bocobo St.,
Ermita, Manila
Maria Monica L. Habito
Block 6 Lot 4 Aquarius Street San Isidro Subd. III,
Lucena City, Quezon Province, Philippines
John Bruce H. Paredes
Blk 23 Lot 24, Lanzone St. Good Harvest Park Subdivision
Phase 2, Caloocan City
C. Nature of the Business:

Crafts & Coffee is an artsy caf-studio that offers daily workshop sessions
on different arts and crafts activities instructed hands-on by in-store artists
with step-by-step videos accessible on mobile tablets installed on tables. The
business also offers customers a wide variety of coffee, drinks, and desserts
for those who want to create crafts while drinking coffee or while eating some
sweets. Customers may book or reserve a slot if they wish to join any craft
session. There are three sessions each day. The types of crafts vary and
include paper cutting, rubber stamp carving, watercolor doodling, and collage
making and journaling. The works created by the customers may either be
displayed in the shop or may be taken home with them.
Every craft session features an in-store artist who is very passionate and
knowledgeable about the craft he or she will teach as well as custom-made
instructional videos to help customers create wonderful projects they can also
do at home. The craft session fee already includes the materials needed for
the projects and a minimum consumable amount for any drink or meal.
Customers may still order additional drinks or meals while working on their
projects and will be added to their bill later on. Another great thing about
Crafts & Coffee is that it also welcomes customers just looking for a place to
relax with great coffee and delicious desserts or pastry. Walk-ins are also
welcomed if slots are still available.
D. Mission & Vision:

Crafts & Coffee aims to create personal and collective experiences that
not only provides stress-relief and comfort, but also promote creativity, selfdevelopment, and social bonding. The business is driven in giving customers
memorable, informative, and gratifying moments as they explore their creative
side and craft with their hearts.
Crafts & Coffee aspires to become the leading and go-to caf for arts and
crafts lovers with stores nationwide by the year 2020.
E. Logo:
(Primary logo with wordmark)
(Secondary logo)
Crafts & Coffees main mark comprises of the following elements: First is a
pair of scissors, a tool widely used in crafting, it represents crafts. The right
scissor was designed in such a way that it takes the form of a pencil to
represent art. Thus, overall signifying arts and crafts, which is the theme
and nature of the caf business. Further, the handles of the scissors are
implied letter Cs that stand for the business name. The X-form is a symbol of
intersection or crossroads to symbolize the caf as a place where arts, crafts,
and coffee lovers come together for pastime and unwinding. Second is a
broken line, broken lines are often used as marks and guides for cutting
papers or boards straightly. Moreover, it also symbolizes coffee drops coming
out from a coffee dispenser to a cup, thats why its in color brown.
Color Processes
The brown color of the brand identity represents coffee, which is one of
the primary offerings in the business. The color orange signifies warmth,
happiness, and relaxation. Crafts & Coffee is a stress-free place where
customers can get cozy while having cup of joe or learning new arts and
crafts activities. The overall mark is enclosed in a hexagon shape, which
symbolizes a beehivea busy and active place. Entirely, the mark was
rendered with curved lines and soft edges to suggest movement and pleasure
because of its gentle and swift appearance.
Typeface
The typography of the wordmark is an uppercase bold sans serif font
since studies say that uppercase lettering in thick weight is important in
memory recall and sans serif is viewed as legible and potent.
F. Tagline:
Caf for the creative you.This tagline is a straightforward message that
tells the customers that Crafts & Coffee is not their ordinary cozy caf or
coffee shop wherein anyone could just get coffee, other drinks, and desserts.
Its the unique caf for customers who want to explore their creative side or
those who just love to create and craft as it invites customers looking for new
and unique pastime or activities that only requires creativity and imagination.
G. Statement of Financing:
The business will source its starting capital through a combination of debt
and equity financing, which is specified below:
Long-term Bank Loan: Php 1,000,000.00
Common Stock: Php 2,700,000.000

Gian Carlo Wong: Php 1,350,000.00
Andrei Nikolai Queano: Php 810,000.00
Darla Louise Rivera: Php 540,000.00
Preferred Stock: Php 250,000.00

Jeff Hazel Ombrete: Php 125,000.00
Rocio Camille Avelino: Php 125,000.00
STARTING CAPITAL: Php 3,950,000.00

10
H. Statement of Confidentiality Report:
The undersigned reader of Crafts & Coffee hereby acknowledges that the
information provided is completely confidential and therefore the reader
agrees not to disclose any information found in the business plan without the
written consent of the owners and professional managers of the business.
It is also acknowledged by the reader that the information to be published

in this business plan is in all aspects confidential in nature and must not be
shared or offered to other third parties, other than information that is in the
public domain through other means and that any disclosure or use of the
same by the reader may cause serious harm and or damage to the company,
Crafts & Coffee itself.
This is a business plan. It does not imply an offer of any securities. This
contract shall be governed by the laws of the County of the Republic of the
Philippines and any applicable law.
11
II.
EXECUTIVE SUMMARY
This paper is a business plan for Crafts & Coffee; a coffee shop that also offers
crafts workshop or studio by using instructional videos while the customer can enjoy having
their favorite coffee and food. Crafts & Coffee provides scheduled crafts workshop that
customers may avail if they want to. In the crafts workshop each customer who signed up
will be provided materials and instructional videos based on what arts and craft workshop is
allotted on that day, knowledgeable artists will also around to help the customers in making
the crafts as well. Each table for the customer will feature a tablet/Ipad so that they may use
it based on the phase that they are currently doing so that they may pause the instructional
video or go back if they want to re do or re study a certain step in making the craft. What
makes Crafts & Coffee different from other coffee shop is its offer for art-lovers, coffeelovers, and anyone looking for something new to try coming together to learn different arts
and crafts while enjoying a cup of coffee. The Starting capital to establish this business is
around 3,950,000 PHP.
Our company aims to create personal and collective experiences that not only
provides stress-relief and comfort, but also promote creativity, self-development, and social
bonding. Our companys tagline is Caf for the creative you because it is a straightforward
message that tells the customers that Crafts & Coffee is not their ordinary cozy caf or
coffee shop wherein anyone could just get coffee, other drinks, and desserts. Its the unique
caf for customers who want to explore their creative side or those who just love to create
and craft as it invites customers looking for new and unique pastime or activities that only
requires creativity and imagination.
12
The current situation of the coffee industry states that drinking coffee has always
been a craze among Filipinos with a demand about a 100,000 metric tons per year
according to Pacita Juan (2014), co-chair of the Philippine Coffee Board. The Philippine
Coffee Board (PCB) Inc. (2008) stated that with each passing year, Filipinos coffee
consumption surges by 20 percent for specialty or premium coffee and 5 percent for readyto-drink coffee. According to a market research done by Euromonitor (2016), coffee is
projected to have a sales growth at a 7% CAGR both in retail volume terms and at constant
2015 prices over the forecast period.
Crafts & Coffee is located along Maginhawa Street, which is now a popular place
where well-established and famous place filled with various restaurants and coffee shops
including our direct competitors like The Nook Caf, Round Robin Caf, Artsy Caf, The
Lost Bread, and The Breakfast Table. Starbucks and Figaro are the indirect competitors of
Crafts & Coffee.
Through the use of demographics and psychographics our companys target market
consists of the lower-middle class to upper class coffee shop lovers and art enthusiasts.
These are the young adults ages 18-35, who are able and are willing to spend a good
amount of money on things like coffee and crafts frequently.
Crafts & Coffe is locared at 188 Maginhawa Street, Sikatuna Village, Quezon City
1101, which is situated at the area also known as StrEat: Maginhawa Food Park. This
place is mostly visited by the target market of the business, which are the millennial/young
adults.
Crafts and Coffee created a website for the client that will enable them to
conveniently know the schedule for the arts and craft workshop, the price of the products,
some pictures on what the company does and as well as the location.
13
III.
INDUSTRY ANALYSIS
A. Present Industry Situation

The Coffee Industry
In the Philippines, the coffee industry, which includes both the coffee
production, specialty coffee shops, and other business sectors whose profits rely on
coffee, is a 21 Billion peso industry (Go, 2009). It could not be denied that drinking
coffee has always been a craze among Filipinos with a demand about a 100,000
metric tons per year according to Pacita Juan (2014), co-chair of the Philippine Coffee
Board. The Philippine Coffee Board (PCB) Inc. (2008) stated that with each passing
year, Filipinos coffee consumption surges by 20 percent for specialty or premium
coffee and 5 percent for ready-to-drink coffee.
Total Coffee Consumption of Filipinos from 1990-2015

This graph shows the total coffee consumption in the Philippines from 1990 to
2015. The rise in the Filipinos coffee consumption is apparent and can be seen when
one compares the data for each year. In 2006, approximately one million and 50 kg
14
bags of coffee had been consumed on the Philippines (Statista, 2016), whereas about
3 million kg bags of coffee was consumed by Filipinos by the year 2015. There has
been a huge increase in the Filipinos consumption of coffee from the year 1990 up to
2015, which can be attributed to the increase in overall food and beverage
consumption as population and income continues to rise, and the booming BPO
industry which has long and varied operating hours from the normal Philippine
workforce (Ang, 2011).
Following this increasing demand and consumption, popular coffee shops of

different kinds can now be found in every nook and cranny of urban areas in the
country, which mostly attract young urban professionals and students (Lagura, 2008).
The proliferation of artisanal coffee shops and gastropubs in the Philippines continued
in 2015, who are aiming for niche markets and targeting the fast-growing number of
young Filipinos who crowd cafes across the country of 93 million people, is attributed
to the consumers increasing sophistication over beverages and food served in cafs
and bars (Euromonitor, 2016).
Comparing the 4th Quarter of 2014 and the 4th Quarter of 2015, there is a
significant growth rate in terms of the Household Final Consumption Expenditure at
Current Prices in Million Pesos. Coffee products are included in the Food and Nonalcoholic beverages. With the table below, there is a 7.2% increase in growth rate.
(Philippine Statistics Authority, 2015)
15
Household Final Consumption Expenditure

4th Quarter of 2014 and the 4th Quarter of 2015
At Current Prices, in Million Pesos
Also, in the 4th Quarter of 2014 and the 4th Quarter of 2015, there is a
significant growth rate in terms of the Household Final Consumption Expenditure at
Constant 2000 Prices in Million Pesos. Food and Non-alcoholic beverages has a 6.5%
increase in growth rate as shown with the table below. (Philippine Statistics Authority,
2015)
16

At Constant 2000 Prices, in Million Pesos
The Crafts Industry
The Creative industry is defined as totality of all the industries, which is rooted
in an individuals creativity, skill, and talent, that have the potential for wealth and job
creation through the generation and exploitation of intellectual property. In the
Philippines creative industries include a wide array of sub sectors including
advertising,
animation,
architecture,
broadcast
arts,
crafts,
culinary
arts,
cultural/heritage activities, design, film, literature, music, new media, performing arts,
publishing, and visual arts as seen in the figure below. (Arangkada Philippines, 2016)
17
Examples of creative and knowledge workers
Filipino designers and people who create various crafts have helped the country
to be known as the Milan of Asia in various designer circles (Joint Foreign Chambers,
2010). In fact in 2005, the Creative Economy Report released by the United Nations
Development Programme (UNDP) cited the Philippines as one of the top 10 exporters
of visual arts among developing countries. The Philippines exported around $107
million worth of goods in 2005 and creative industries in the country contributed some
4.92 per cent to the gross domestic product and cited as the fifth in the export of
sculptures.
Philippine copyright-based industries contributed P661 billion to the local
economy, equivalent to about 7.34 percent of the countrys gross domestic product
(GDP). These industries also accounted for about 14.14 percent of the countrys total
labor force in 2010. These findings, which demonstrated the economic viability of the
18
creative industries, were based on the 2013-2014 study prepared by the Intellectual
Property Office of the Philippines (IPOPHL) and the World Intellectual Property
Organization (Wipo), which focused on the contribution and significance of copyrightbased industries (CBIs) to national economies.
It was even noted by IPOPHL director general Ricardo R. Blancaflor, that the
percentage contribution of copyright-based industries to GDP is very high compared to
the rest. In terms of employment, the contribution of Philippine CBIs to the economy is
the highest in the world. He even added that these results have a very big implication.
That means the production of the creative industry should be in the radar of the
business community, the banks and economic planners.
Filipinos increasing disposable incomes can mainly be attributed to the growing

BPO and IT workforce, which are usually characterized by having sedentary daily
tasks. With the increasing growth of the creative industry in the Philippines, there is
also a rise in the demand for activities which push personal and physical growth as a
form of leisure emerged and rose in 2016, such as outdoor activities, sports and even
arts and crafts. Writing instruments benefited strongly from this trend, as not only
children but also adults participated in arts and craft activities, such as coloring,
calligraphy and many others (Euromonitor, 2016).
Arts and Crafts can be included in the Recreation and Culture. Comparing the
4th Quarter of 2014 and the 4th Quarter of 2015, there is a significant growth rate in
terms of the Household Final Consumption Expenditure at Current Prices in Million
19
Pesos. With the table below, there is a 9.1% increase in growth rate. (Philippine
Statistics Authority, 2015)

At Current Prices, in Million Pesos
Also, the 4th Quarter of 2014 and the 4th Quarter of 2015, there is a significant
growth rate in terms of the Household Final Consumption Expenditure at Constant
2000 Prices in Million Pesos. Recreation and culture gained a 8.2% increase in growth
rate as shown with the table below. (Philippine Statistics Authority, 2015)
20

At Constant 2000 Prices, in Million Pesos
Economic State of the Philippines

According to 2016 International Monetary Fund statistics, the Philippine
Economy is the 33rd largest in the world as well as one of the now emerging markets,
having an estimated GDP by Purchasing power parity to at $811.726 billion this year
2016. (International Monetary Fund , 2016) With the recent slow growth globally, the
Philippines remained a strong performer being at the 14th spot in the Asia-Pacific
Region, with 63.0 and an increase of 0.9 in Business Freedom rates. Globally, the
21
country has landed the 70th spot with an Economic Freedom Status of being
moderately free. Monetary Freedom and Management of Public Finance are the
current notable successes of the Philippines, while the main concerns include the rule
of law and labor freedom. (Index of Economic Freedom, 2016)
For the past three years since the year 2013 during the Aquino administration,
there has been a significant increase in the growth of the Gross Domestic Product.
While in the year 2013, GDP Growth was 7.1% and in 2014 the GDP Growth was
6.1%, in the year 2015 the GDP Growth dropped to but still a stable 5.8% due to weak
external demand, typhoons and El Nio. (Asian Development Bank, 2016) The slow
start due to the weak government spending in the first half of 2015 was immediately
remedied with the bouncing the economic status in the latter half of the year giving an
annual total of 5.8% which can still be considered as a solid rate in the GDP growth.
(The World Bank, 2016)
Socioeconomic Planning Secretary Emmanuel Esguerra (2016) said the
Philippines is the fastest-growing economy among 11 selected Asian economies in the
first quarter of the year, outpacing expansions in China (6.7 percent), Vietnam (5.5
percent), Indonesia (4.9) and Malaysia 4.2 percent). This exceeds market expectations
as the the Philippine economy grew by 6.9% in the first quarter of 2016 according to
the Philippine Statistics Authority (PSA).
22
Philippine Economic Growth from 2013-2016 (Q1)
The country's growth based on gross domestic product (GDP) or the total value
of all goods and services produced was higher than the last quarter of 2015, when
growth was recorded at a revised 6.5 percent. The agency said the revision was due
to similar upward revisions in numbers in electricity; gas and water; public
administration
and
defense;
transport storage
and
communication;
financial
intermediation; and mining and quarrying (Diola & Cerda, 2016). This high economic
growth shows that there is more value addition in the economy or there is a higher
income or rise in expenditure which implies that there is a rise in the standard of living
of the citizens and due to rise in income there will be a higher spending on various
goods and services (Modi, 2014).
23
Purchasing Power, according to Investopedia (2016), is the value of a currency

expressed in terms of the amount of goods or services that one unit of money can buy.
This is important because, all else being equal, inflation decreases the amount of
goods or services one would be able to purchase.
While Boundless (2016) added the point that purchasing power can change if
the price of goods increases/decreases, or if inflation increases/decreases. A higher
real income means a higher purchasing power since real income refers to the income
adjusted for inflation. Also, if the economy expands causing consumer confidence to
be higher, consumers will be making more purchases. On the other hand, if the
economy contracts or is in bad shape, confidence is lower, and consumers tend to
save more and spend less.
The presence of more restaurants, coffee shops, and even convenience stores,
shows that more Filipinos have the capacity or purchasing power to shop and dine
(Rodriguez, 2014), and this increase in the purchasing power of the Filipino
consumers can be attributed to the Philippines increasing economy (Abola, 2016).
Filipinos tend to be confident enough to make more purchases. Together with the
recognition of the continuous growth potential for coffee shops, many Filipino
companies and even growers of locally produced coffee beans have already opened
their own businesses. The support of the local government and agriculture sector to
farmers has also helped to rejuvenate the Philippine coffee industry (Ang, 2012).
24
B.
Future Outlook and Trends

According to a market research done by Euromonitor (2016), coffee is projected
to have a sales growth at a 7% CAGR both in retail volume terms and at constant
2015 prices over the forecast period. Coffee is expected to continue to grow as a
staple product not just to start the day but to provide a boost whenever needed. With
an expanding audience in terms of age and with different products for various
economic segments, coffee can expect to see continued positive growth (Euromonitor,
2016). Coffee is generally considered to be a household staple even among the lower
economic classes. At present, soluble or instant coffee accounts for about 90 percent
of all the coffee consumed in the Philippines. Domestic coffee consumption is
estimated to increase slightly due to a predicted increase in overall food and beverage
consumption as population and income continues to rise. The booming BPO industry
which has long and varied operating hours from the normal Philippine workforce is
also expected to contribute to the increase in coffee consumption (Ang, 2011).
Artisanal coffee shops will continue to flourish due to the growing number of
Filipinos who are now becoming increasingly sophisticated when it comes to their
choices of coffee (Euromonitor, 2016). Furthermore, according to analysts, specialist
coffee shops in the Philippines are expected to continue growing in the coming years.
With international coffee chains gaining popularity and other specialty coffee shops
following suit, more such outlets are likely to appear. The strong growth is mainly
attributed to excellent consumer demand, as coffee drinking has become a very
popular social activity. Coffee shops have become a status symbol for younger
25
consumers and Filipinos, in general, have started to be more discriminating in their

preferences for coffee (Ang, 2012).
The population of students at different educational levels is expected to

increase steadily, and will continue to push the growth of the category. The artistic
trend may not be as strong in the next five years, but will continue to encourage
consumers to explore their creative skills, as workshops and seminars are springingup through small and large organizations. This would lead to the further growth of the
category in the next five years (Euromonitor, 2016).
The Philippine economy is expected to grow by a pegging economic growth at

6.4% for this year, 6.2% in 2017, and 6.2% in 2018 according to the World Bank,
which has a slightly brighter outlook for the country. The Philippines is expected to
have the fastest gross domestic product (GDP) growth among the 5 biggest
economies of the Association of Southeast Asian Nations or ASEAN-5 in 2016, based
on the IMF's latest Regional Economic Outlook for Asia and the Pacific (REO).
C.
Analysis of Competition
Independent players dominate cafs/bars as they contributed an 89% share of
total value sales in the channel in 2015 (Euromonitor, 2016). Since the business
establishment would be located along Maginhawa Street, a well-established and
famous place filled with various restaurants and coffee shops, direct competitors are
cafes like that of The Nook Caf, Round Robin Caf, Artsy Caf, The Lost Bread, and
The Breakfast Table. All these coffee shops offer their own specialty coffees and other
26
foods in their menu, and a comfortable place to stay while eating. The only thing that
differentiates these cafes from each other is the theme of their place and menu. The
Nook Caf is a Harry Potter themed caf, while Round Robin Caf and The Lost
Bread features an American theme and menu, Artsy Caf offers a classy and colorful
ambiance with an American and Filipino-themed menu, whereas The Breakfast Table
distinguishes itself by focusing on a Filipino-themed menu. All business establishment
focuses on their menu and in providing a place for customers to stay for a while.
However, they dont offer other services or activities that the customers can enjoy or
engage themselves in during their stay inside the said coffee shops.
Market Share by Player Type in Asean Countries
In the caf industry in the Philippines, 70% of the market share consists of
International players, which then supports their strong presence and dominance in the
Philippines (Anh, 2016). As such, another formidable direct competitor is that of the
Starbucks which holds 58% of the market share in the caf industry in the Philippines
as they offer coffee blends, instant coffee, non-coffee blended beverages, smoothies,
teas, ice-cream, merchandise, and fresh food. Starbucks has the widest network of
outlets among cafs/bars, with 269 outlets across the Philippines in 2015. Aside from
27
the brand being a status symbol, consumers patronage is also hinged on the kind of
drinks and food it provides and the pleasant experience that they receive whenever
they visit Starbucks (Euromonitor, 2016).
Figaro Coffee Co. on the other hand, which has a market share of 10% with
about 67 outlets nationwide and coffee, fine meals, pastries and dessert in their menu
(Euromonitor, 2016), is an indirect competitor of Crafts and Coffee together with Costa
Coffee which offers handcrafted coffee (GMA News, 2014).
D. Target Market
Segmentation
In the process of subdividing the market into buyers distinct groups with
different characteristics, needs, or behavior that might require marketing programs or
separate products (Amstrong and Kotler 2006), Crafts and Coffee has segmented its
markets in terms of demographics and psychographics which deals with the
geography, age, income class, and as well as the behaviors of the possible customers.
Demographics
The graph below outlines the total market potential (in percentage of the total
number of possible customers) in Quezon city, the largest city in Metro Manila, which
has an estimated population of 3,085,786 (Quezon City Official Website, 2016).
28
POPULATION BY AGE GROUPS IN

QUEZON CITY
Retirees
12%
Preteens,
Teens
12%
Young Adults
27%
Children
24%
Adults
25%
Population by Age Groups in Quezon City in the Year 2016
Distribution of Families by Income Class 2012

The table above shows the number of Filipino families (in thousands) in Quezon
City, and their corresponding annual income. While the tables below show the specific
social class which will be the focus for the said category (lower-middle class to upper
income/class) and the income distribution by region, specifically National Capital
29
Region (NCR). These are the possible segments that Crafts and Coffee could target.
(Albert, Gaspar & Raymundo, 2015)
Income Classes in the Income Distribution, Income Thresholds and Sizes of Income
Classes in 2012 (Only Lower-Middle Class to Upper Class included)
Income Distribution by Income Group and by Region, 2012
30
Psychographics
Consumer Behavior
As coffee shops sprouted all over the country during the past years, drinking
coffee has truly become a social activity amongst the Filipinos as they flock around
various coffee shops in the area (ANC, The World Tonight, 2015). Nowadays, the
hobbies of young adults include that of conversing with friends, watching movies,
playing games, reading, dancing, listening to music, and spending their time doing
various arts and crafts projects (Social, Weather Station, 2000), and the incorporation
of technological devices and multimedia approaches in learning something they are
interested in are said to be the most effective approach in learning (Craig, Driscol, &
Ghilson, 2004).
According to the report, the Philippines ranks second worldwide when it came to
most minutes spent using screens at 531 minutes (or more than 8 hours) a day, a few
minutes behind Indonesias 540 minutes. European countries use their devices less,
with Britain registering 411 minutes, Spain at 396 minutes, Germany at 379 minutes,
France at 326 minutes and Italy at 317 minutes.
31
Minutes of Usage based on what Type

of screen (Philippines)
Meanwhile, the Philippines tops the world in tablet use at 115 minutes. Those which
rank next are Indonesia (110 minutes), Thailand (95 minutes), Czech Republic (70
minutes) and Russia (66 minutes). The countries that use tablets the least are Japan
(15 minutes) and South Korea (14 minutes).
Targeting
Since the products and services offered by Crafts and Coffee will cater to
people who want to get their daily cup of great-tasting coffee in a relaxing atmosphere
and as well as to engage themselves in learning new crafts through the incorporation
of multimedia. Crafts and Coffees target market consists that of the lower-middle class
to upper class coffee shop lovers and art enthusiasts in Quezon City. These are the
young adults ages 18-35, both male and female, who live a lifestyle where they are
able and are willing to spend a good amount of money on things like coffee and crafts
32
frequently. With this, we decided to have a product differentiation that caused the
pricing our products and services to be a little bit high because we will depend on the
quality of both.
Crafts and Coffee will be targeting people who are coffee lovers, arts and crafts
lovers, or both. We will include in the target market those who are willing to spend in
order to learn something new and innovative when it comes to arts and crafts. In here,
we will be using gadgets, specifically tablets with a free WIFI access, in order to cater
the learning need of the customers.
Positioning
Crafts and Coffee aims to provide a one-of-a-kind experience in learning arts
and crafts through the incorporation of multimedia while having fun and enjoying any
type of product the shop offers. The main difference of the Crafts and Coffee against
the other shops is its service of offering state-of-the-art facilities and equipment that
promotes the creative process while satisfying the cravings of the customers for food
and beverages.
33
IV.
DESCRIPTION OF THE VENTURE
A. Products and Services Offered
Service Name and Products

Name
Coffee products
Description
COLD Coffee Based beverage

Iced Latte
Iced Regular Coffee
Frappuccino Mocha
Frappuccino Espresso
Non Coffee products
COLD Beverage
Frappuccino Vanilla
Frappuccino Strawberry
Frappuccino Green tea
Frappuccino Chocolate
Iced Green tea
Packed Juice
Mineral Water
Desserts
Blueberry Cheese Cake

Cheese Cake
Arts and Crafts Service
Daily Activities
Operation
Open MONDAY to SUNDAY (10:00am to
9:00pm)
Daily Schedule
Twenty (20) Slots Per Session
SESSION 1 - 10:00am to 1:00pm
SESSION 2 1:30pm to 4:30pm
SESSION 3 5:00 to 8:00pm
Mondays
SESSION 1: Paper Cutting
34
SESSION 2: Rubber Stamp Carving

SESSION 3: Watercolor Doodling
Tuesdays
SESSION 3: Collage Making
Wednesdays
SESSION 1: Collage Making & Journaling
Thursdays
Fridays
Saturdays
Sundays
Rules and regulations:

Payment should be paid before each
session.
Each payment is subject to one session only.
Each payment comes with a consumable
minimum amount for any beverage and/or
snacks. Additional orders will be charged.
Tools are provided but should be returned
after each session. Materials are provided and
the artist can take it with him/her after the
session.
35
Membership and Gimmicks
Provide stamps as points which can be used

as payment for certain items.
This card could also be used as a statistical
data gathering device, as it would determine
the most bought products and services
Free Wi-Fi service for every item bought.
Password is subject to one device only, once
logged out it can be transferred to another
device.
3 hours per password
B. Size of the Business

With a total of Php 3,950,000.00, Crafts & Coffee is considered as small
business following the guidelines provided under Republic Act No. 9501 or the Magna
Carta for MSMEs, which amended RA 8289 and RA 6977, otherwise known as Magna
Carta for Small Enterprises.
The following are the Micro, Small and Medium Enterprises (MSMEs) Classification for
businesses:
Enterprise
By Asset Size
By Number of Employees
Micro
Up to Php 3,000,000.00
1- 9 employees
Small
Php 3,000,001 Php 15,000,000.00
10 99 employees
Medium
Php
15,000,001.00
100,000,000.00
Php 100 199 employees
Therefore, Crafts & Coffee is considered as a small business.
36
C. Office Equipment and Personnel

RENOVATION
Materials
Quantity
Price/unit(pesos)
10x60 ceramic tiles(wood design)
5000 pcs
Php 110.00
Master tile adhesive
27bags
Php 280.00
Portland cement
85 bass
Php 345.00
Tile grout
4kgs
Php 80.00
Toilet bowl with lavatory
2 sets
Php 8,000.00
20x20 ceramic tiles
16pcs
Php 25.00
30x60 ceramic wall tiles
150pcs
Php 58.00
2x4x8 untreated American lumber
262pcs
Php 700.00
4x8x3/4 marine plywood
10pcs
Php 1,200.00
#4 CHB
200pcs
Php 8.00
Thhn #12 wire
2 box
Php 1800.00
3 gang switch
15pcs
Php 180.00
5w Nxled LED bulb
35pcs
Php 180.00
Boysen Flat latex
9 gal.
Php 2,200.00
Davies elastomeric paint
25 gal.
Php 700.00
Hose bidet
2 pcs
Php 600.00
Faucet
4pcs
Php 400.00
Hudson Poly eurethane
16 liters
Php 400.00
Tinting color
2 pint
Php 120.00
1/2x2x8 edging
9pcs
Php 220.00
Sand
1 truck load
Php 1,200.00
Common nail #3
5 kilos
Php 100.00
37
Concrete nail #4
3 kilos
Php 80.00
Finishing nail #2
5 kilos
Php 120.00
Light bulb outlet
35 pcs
Php 100.00
3 gang outlet
15 pcs
Php 180.00
EQUIPMENT
Product Type
Quantity
Price/unit(pesos)
Espresso Machine
2 pcs.
Php 31,510.00
Espresso Grinder
1 pc.
Php 64,400.00
Microwave
1 pc.
Php 4,298.00
Toaster
1 pc.
Php 2,699.00
Refrigerator
1pc.
Php 18,600.00
Blender
2 pcs.
Php 1,097.00
Generator
1 pc.
Php 30,000.00
FURNITURES
Product Type
Quantity
Price/unit(pesos)
Wooden Tables
15 pcs.
Php 1,480.00
Wooden Chairs
60 pcs. = 15 sets
Php 1,200.00
(1 set = 4 pcs.)
Air condition system (split type)
3 pcs.
Php 23,999.00
Exhaust Fan
1 pc.
Php 1,615.00
38
Electric Fan
3 pcs.
Php 799.00
Wooden Shelves
3 pcs.
Php 745.00
SMALLWARES
Product Type
Quantity
Price/unit(pesos)
Steaming Pitchers
2 pcs.
Php 427.34
Shot Glass
1 box = Set of 6
Php 551.54
Long Handle Spoon
Set of 6
Php 689.00
Coffee Grinder Brush and Bean Scoop
1 pc.
Php 550.62
Coffee condiment organizer
1 pc.
Php 4,048.00
Clear Squeeze Sauce Bottle

(8oz/240ml)
3 packs
(1pack = 2 bottles of
8oz/240ml)
Php 32.00
Pumps
8 pcs.
Php 137.54
Tamper & Packing Mat
2 pcs.
Php 329.82
Knockbox
1 pc.
Php 130.00
Apron
4 pcs.
Php 40.00
Plates
4 boxes
(1 box = 12pc.)
Php 1,299.00
DISPOSABLES
Product Type
Insulated Paper Hot Cup
Quantity
1 box of 12oz = 20 Packs
of 50
Price/unit(pesos)
Php 2,800.00

of 50
39
of 50
Paper Hot Cup Lid

of 50
Php 2,470.00

of 50
of 50
Coffee Straw
1 box = 200pcs.
Php 320.00
Coffee Stirrer
1 box = 200pcs.
Php 280.00
Table Napkin
1box = 3 packs
Php 1,550.00
Utensils (spoon, fork, bread knife)
50pcs.
Php 54.00
CLEANING SUPPLIES
Product Type
Quantity
Price/unit(pesos)
Espresso Machine Cleaner 12 oz.
1 pc.
Php 548.00
Urn & Brewer Cleaner
Set of 5
Php 252.00
Glass Cleaner
1 liter
Php 218.00
Furniture Polish
1 liter
Php 650.00
Floor Cleaners
1 liter
Php 210.00
Sponge
3 pcs.
Php 35.00
Paper Towel
3 rolls
Php 28.00
Scrubbing Brush
1 pc.
Php 56.00
Toilet Brush
1 pc.
Php 74.00
Mop & Bucket
1 pc.
Php 350.00
Dishwashing Liquid
1 liter
Php 42.00
40
Hand washing liquid
1 liter
Php 38.00
Toilet Cleaner
1 liter
Php 162.00
OFFICE/COUNTER SUPPLIES
Product Type
Quantity
Price/unit(pesos)
Cash Register
1pc.
Php 39,000.00
PC
1pc.
Php 12,000.00
Telephone
1pc.
Php 800.00
File Cabinets
1 pc.
Php 2,799.00
Order Slip
2 booklets
Php 120.00
Thermal Roll (for receipt)
2 booklets
Php 72.00
Ballpen
1 box
Php 45.00
WORKSHOP SUPPLIES
Product Type
Quantity
Price/unit(pesos)
Ipad Air 16gb
10 pcs.
Php 22,954.00
Desk
12 pcs.
Php 1,250.00
Markers
1 boxes
Php 330.00
Pens
1 boxes
Php 180.00
Blank Sheets
1 bundle
Php 299.95
Colored Sheets (assorted colors)
1 bundle
Php 399.25
Paper Boards (assorted colors)
1 bundle
Php 639.00
Specialty Paper (assorted colors)
1 bundle
Php 520.50
Glue
5 pcs.
Php 54.00
Masking Tape
1 boxes
Php 120.00
Scissors
10 pcs.
Php 28.00
Stamp
3 pcs.
Php 32.00
41
Origami Pack (assorted colors)
10 packs
Php 82.00
Cellophane (assorted colors)
1 bundle
Php 68.00
Crepe (assorted colors)
1 bundle
Php 94.00
Foam Shapes (assorted colors)
1 bundle
Php 75.00
Felt Paper (assorted colors)
1 bundle
Php 60.00
Modelling Clay (assorted colors)
10 boxes
Php 25.00
Canvas
20 pcs.
Php 445.00
Artists Brush (different brush tip)
10 pcs.
Php 27.00
Acrylic Paint (assorted colors)
10 pcs.
Php 263.00
Oil Paint (assorted colors)
10 pcs.
Php 202.00
Watercolor Paint (assorted colors)
10 pcs.
Php 320.00
Paint Pot/Palette (different sizes)
10 pcs.
Php 62.00
Paper Cutting
A4 Cutting Mat (Store-owned, 30pcs.)

Php145.00 x 30pcs. = Php4,350.00
Art Knife (Store-owned, 40pcs.)
Php109.00 x 40pcs. = Php4,360.00
Knife Blade Refill 3s (Store-owned, 100pcs.)
Php32.00 x 100pcs. = Php3,200.00
Short Vellum Board 10s (Free, 250pcs. (for one month))
5 pcs. per student (1 pack = 2 students)
6 sessions in a week x 10 x 4 weeks = 240 packs (10 packs extra)
Php19.50 x 250pcs. = Php4,875.00
Collage Making & Journaling

Spare/old magazines from junk shops or booksale (Store-owned, 200pcs. (for
one month))
Php6,000.00
42

Php19.50 x 250pcs. = Php4,875.00
Scissors (Store-owned, 30pcs.)
Php20.75 x 30pcs. = Php622.50
Glue Stick (Store-owned, 40pcs.)
Php35.75 x 40pcs. = Php1,430.00
Colored Markers 8s(Store-owned, 30pcs.)
Php174.75 x 30pcs. = Php5,242.50
Rubber Stamp Carving

6x4 Carving Block 10s (Free, 40pcs. (for one month))
1 pack = 10 students
5 sessions in a week x 2 x 4 weeks = 40 packs
Php299.75 x 100pcs. = Php11,990.00
6 sessions in a week x 4 x 4 weeks = 96 packs
Php19.50 x 96pcs. = Php1,872.00
Ink Pad 4s(Store-owned, 20pcs.)
Php320.00 x 20pcs. = Php6,400.00
Watercolor Doodling
Php19.50 x 250pcs. = Php4,875.00
Paint Brushes 4s (Store-owned, 30pcs.)
Php169.75 x 30pcs. = Php5,092.50
Palette (Store-owned, 20pcs.)
Php14.75 x 20pcs. = Php295.00
Watercolor Paint Tubes 12s(Store-owned, 10pcs.(for one month))
Php323.00 x 8pcs. = Php3,230.00
43
Considering the National Capital Region Minimum wage for construction workers,
the total cost of labor is as follows:
Position
Min. Wage per

day
Days of Work
Total Wage
Construction
Workers
Php 466.00
20 days
Php 139, 800.00
Considering the National Capital Region Minimum wage for retail/service

establishments employing 15 workers or less, the total cost of labor is as follows:
Position
Min. Wage per

day
Days of Work
per month
Total Wage/Month
Baristas
Php 454.00
26 days
Php 11,804.00
Server/Waiter
Php 454.00
26 days
Php 11,804.00
Considering the minimum wage for art instructor with a degree of Bachelor of
Fine Arts or any related course, the total cost of labor is as follows:
Position
Min.
day
Wage
Instructors
Php 692.00
per Days of Work Total Wage/Month

per month
26 days
Php 18,000.00
D. Background of the Entrepreneurs
*See attached resume at the Appendix*
44
V. BUSINESS LAYOUT
A. Location Mapping
Spot Mappin
45
B. Facilities Layout / Floor Plans
46
VI.
MARKETING PLAN AND BUSINESS STRATEGIES
A. Product Strategy:
Crafts and coffee is not the usual coffee shop. What makes it different is that it
focuses on teaching new arts and crafts to learn in a cozy cafe so customers can enjoy
learning alongside delicious drinks or sweets. A perfect stop for art and coffee lovers.
The caf is designed for the target market, which are the millennial/young adults who
can truly appreciate the ambience of an artsy themed caf. Mobile tablets will be
installed on tables so customers will be guided by custom-made instructional videos,
which they can also freely navigate on depending on their pace. Tools will be provided
for rent by the cafe and the materials for the final craft will be given for free. To make
them feel inspired and pumped up in doing crafts, walls and shelves of the caf is
served for the customers who choose to display their craft works.
To strengthen the brand identity, collaterals such as posters, leaflets, and

package design will be utilized in order to make the business distinct and cohesive. The
overall branding will be artsy and hipster, revolving around warm and slightly
desaturated
hues
for
that
cozy
and
attractive
feel.
B. Placement Strategy
The business will be strategically located at 188 Maginhawa Street, Sikatuna
Village, Quezon City 1101, which is situated at the area also known as StrEat:
Maginhawa Food Park. This place is mostly visited by the target market of the
business, which are the millennials/young adults. Customers from nearby universities
47
like University of the Philippines, Ateneo De Manila University, and Miriam College, as
well as individuals from Manila and Katipunan frequently stop by cafes or restaurants in
this area.
Before the shops opening, there will be advertising and promotions in social
media sites and the cafs website including the location map to get potential customers
for the shops opening. These distribution channels are used for the reason: the target
market which are the millennial/young adults generally make use of these channels or
platforms almost everyday. By making use of this method, the caf and its brand identity
will be more exposed and familiar to people and will attract potential customers by the
time of the shops opening.
Crafts and Coffees website
48
C. Pricing Strategy:
For the pricing strategy, Crafts and Coffee will implement a premium pricing
strategy wherein the price of the products/services is much higher as compared to other
cafes or coffee shops. This is common for small businesses that offer unique and highquality product/services. In relation, the cafe will focus on product quality with its unique
coffee experience and excellent art-related service. In here, P500 will be the price of
each session which includes a medium sized drink.
This method could make the customers feel they are special. Since there are
only limited slots offered in the caf. Also this would also lead to high profit margin. On
the other hand, there are also disadvantages of this method which includes branding
cost, competition, sales volume, and high costs. Overall this method will have a high
risk. If the service/products offered does not satisfy the customers, the business will be
at risk. But if the services/ products offered will satisfy the customers and make them
think that it is worth the high cost, then this business strategy will be effective.
49
Price List
D. Promotion
In promoting our brand and company, we will employ a straightforward and
differentiating advertising strategy. Advertisements on both print and electronic media
platforms will directly showcase the unique selling proposition of the cafe. Featuring flat
lay scenes of crafting in action while having a cup of coffee to show the main concept of
the business. The company will leverage on the internet and social media platforms like;
Instagram, Facebook, Twitter.
Crafts & Coffee will also invite bloggers and influential celebrities to further
promote and advertise our products and services because nowadays bloggers and
celebreties can increase the sales and customers of a company because they have a
great impact on the view and perception of the people specially those who adore and
follow them in their social media accounts.
50
Crafts & Coffee will also have an interactive website and use the platform to
promote the shop. The website will allow interested target market to book sessions,
view a wealth of information regarding the shop, the products, the production methods,
and other information.
Additionally, upon the cafes opening, free taste promo will be implemented so
customers would know which item they would like to order. This technique may attract
more customers if ever positive feedback is obtained. Further, its also a way of showing
that the Crafts and Coffee promises quality and detail with its products, aside from the
main service.
Business Card
51
Teaser Ad
52
Intro Ad
53
Sustaining Ad
Website (Homepage)
54
Leaflet Ad
55
E. Others:
Product vs Pricing Differentiation
Crafts and Coffees reputation relies mostly on the value of the products
and services it offers to the businesss target market, which is then backed up
by a premium pricing strategy. The prices of these products/services are
much higher compared to other cafes or coffee shops, since prices
communicate a perceived value of a product; so if set too low, the customers
might assume that the offerings of the business are inferior compared to the
competitors.
Product Life Cycle
Introduction
As a start-up business, Crafts and Coffee belongs to the
introductory phase of the product life cycle wherein revenue and profit are still
at a minimal. Since its products and services have just been introduced into
the market, it is vital to make the business known to its target market, and as
56
well as to position itself against its competitors. So as to achieve this, Crafts

and Coffee will utilize the maximum capacity of advertisements on both print
in terms of posters, and electronic social media platforms through social
media sites and as well as our own website to reach out to our target
consumers, and to convey to them the main offerings of the business, which
in turn helps in the creation of a demand.
Boston Growth Matrix:

With a high market growth and a low market share since the business is
just a start-up business, Crafts and Coffee is under the question mark
category in the Boston growth matrix. Businesses in the question marks
category have a high potential to gain market share and become stars, and
eventually cash cows if the market growth slows down. However, since
businesses like this tend to consume large amounts of money, but may not
generate much cash since it has a low market share, it is important that the
strategies in the 4 Ps of production are properly laid out, planned, and
executed. To cope up with this, Crafts and Coffee will bolster its popularity
through the use of social media sites and print ads for their promotions, it will
be also backed by a series of brochures, posters/flyers. Failure to do so might
make Crafts & Coffee into a dog which may lead to closure of the business if
not addressed properly.
57
Crafts and Coffee will employ the usage of mobile tablets installed
with custom-made instructional videos to teach new arts and crafts projects to
its customers alongside delicious drinks or sweets as the product strategy of
the business. The business will then be strategically situated at Maginhawa
Street, Quezon City, a place which is mostly visited by the target market of
the business, which are the millennials/young adults for the placement
strategy. A premium pricing strategy would be implemented, and a
straightforward and differentiating advertising strategy would be utilized for
the promotions strategy wherein the advertisements on both print and
electronic media platforms will directly showcase the unique selling
proposition of the caf.
Product-Market Growth Matrix (Ansoff Matrix)
Market Penetration Strategy

Since there are a lot coffee shops along the area, Crafts and Coffee will
increase the usage of promotional strategies like that of promos, free tastes, and
58
discounts in order to penetrate the market, and to increase the business market
share in the current market scenario. To achieve this, more refined products or
services would be sold to established customers in order to create a competitive
advantage amongst its competitors.
Market Development Strategy

In order to expand into new markets using the business current existing
offerings, Crafts and Coffee will venture in new areas or regions in the country
through geographical expansion. This will take into consideration the need to
address the needs and wants of a different customer segment. The business can
target a new set of target market by branching out at Don Antonio
Commonwealth for another and better location for easy access, with a high
exposure to potential customers.
Product Development Strategy

In the product development strategy, Crafts and Coffee will
incorporate new products and services targeted at its existing markets to achieve
growth. This involves extending the product range available to the businesss
existing markets, and as well as adding new features to the already existing list
of products and services offered by Crafts and Coffee.
In the future, Crafts & Coffee aims to extend its product and service
offerings into a wider product range than its competitors. Crafts & Coffee will
come up with new products which may benefit their current customers such as
59
new formulas for coffee, additional art on coffee cream or the new food in their
menu. Adding more activities for the workshop will also be added for the service.
Diversification Strategy
Utilizing the diversification strategy, Crafts and Coffee will try to

grow its market share by introducing new offerings in new markets. The
proponents of Crafts and Coffee can venture into related businesses like that of a
crafts
equipment
store
or
different
type
of
food
restaurant.
VII. ORGANIZATIONAL PLAN

A. Form of Ownership:
Crafts and Coffee, which is owned by more than 5 people and is classified under the
corporation category in the different forms of a business organization, as it exhibits a
greater formality in the conduct of the business in general. Moreover, raising the
required capital is easier in this form of business and the liability of a certain owner only
extends up to the extent of his or her shares.
B. Organizational Structure Function:
60
General
Manager
Gian Wong
Finance
Waiter
Barista
Cashier
Darla Rivera
Book Keeping
Andrei Queano
C. Roles & Responsibilities of the Members of the Organization:

Book Keeping
He/She is responsible for keeping records of the expenses and income of the
business to determine the growth, breakeven & loss of the business of Crafts & Coffee
Cashier
He/she is responsible for collecting the cash earned in services and food paid by the
customers
Keeping records of the day in-out of the employees
Barista
Responsible for making the drinks
Preparing the equipments in making drinks
61
Checking the stocks of coffee and other items used in making drinks
Instructors
Will be invited to teach and guide the cutomers; payed per session
Responsible for guiding the customers in craft making
Keeping records of the use of materials for each session
Evaluate the materials to be use in demonstrating lesson
Distribution of the equipment on the customers
Servers/ Waiters
Cleaning Duties
Serves the ordered drinks and food to table
Setting up the shop such as chairs and tables
Sanitation of the shop
VIII. RISK ASSESSMENT

A. SWOT Analysis:
Strengths
-
Uniqueness of the service

offered
Strategic store location
Right place to showcase the
creativity of the customers
Wide variety of coffee, drinks,
and desserts
Employees who are professional
and experienced, and specializes
in art
Advanced gadgets, such as
tablets, are handed to the
customers for instructional
purposes.
Weaknesses
-
Business is new and not widely

known
Has not yet established a goodwill
and reputation
Small Capital
62
Opportunities
-
Technological developments
Geographical expansions and
franchising
Establish a good bond with the
employees and with other
customers.
Growing market niche of coffee
lovers and crafts enthusiasts
Use of social media platforms to
promote the business
Market expansion
Threats
-
Existing and growing competition

within the coffee industry can lead
to low profit
Rise of a new type of beverage or
leisure activity
Supply and price of coffee and
craft materials are subject to
instability
A slump in the economic condition
of the Philippines might decrease
consumer spending
B. Contingency Plans:
Problem
1. In the event of a fire in the store
Solutions
A. Call the U.P. Diliman Police Station
and Fire Department telephone
number (02) 928 3615
B. Immediately inform the Person-incharge
C. The person/s near the fire will
attempt to extinguish the fire
D. If the fire is inextinguishable the
PIC is responsible to signal the fire
alarm for evacuation.
E. When the fire alarm rings, all
employees and customers should
evacuate the building and wait for
the Police and Fire Department to
arrive.
63
2. Damaged or malfunctioned
equipment
A. Ask help from a technician if

necessary
B. Replace the broken or
malfunctioned equipment with the
spare equipment.
C. The technician will diagnose the
equipment if it is possible to fix
3. Supplier is Unavailable
A. Look for temporary suppliers
4. Possible loss of the tablets
A. The equipment should have a

durable cable for security purposes
attached to the table to keep the
customers from misplacing/stealing
them.
5. Loss of electric power
A. Use the power generator
IX. FINANCIAL PLAN

A. Projected Income Statement:
64
B. Projected Balance Sheet:
65
66
67
68
69
70
71
XI. BIBLIOGRAPHY
Albert, Jose Ramon; Gaspar, Raymond & Raymundo, MJ. (2015, July). Who are the
middle class? Rappler.com. Retrieved from: http://www.rappler.com/thoughtleaders/98624-who-are-middle-class
Anh, N. (2016). The Caf Market among 5 Asean Countries. Asia Business Library.
Ang, P. (2012). Philippine Coffee Situation and Outlook. USDA Foreign Agricultural
Service: Global Agricultural Information Network.
Arangkada Philippines (2016). Background (Creative Industries). Retrieved from:
http://www.investphilippines.info/arangkada/seven-winners/creativeindustries/background-ci/
Asia Development Bank (2016). Philippines: Economy. Retrieved at:
http://www.adb.org/countries/philippines/economy
BBC News Asia. (2014, May). Could the Philippines be Asias next tech tiger? Retrieved
from: http://www.bbc.com/news/world-asia-27379715
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74
APPENDIX A
BACKGROUND OF THE ENTREPRENEURS
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To obtain a Graphic Designer profile that will facilitate my career and utilize my creative skills
while broadening my graphic design, digital media design and animation experience to provide
the best graphical solutions and to work in a pragmatic way in an organization where I can show
my talent and enhance my skills to meet the company goals and objective with full knowledge
and integrity.
Proficient in English and Filipino

Creative
Can work confidently under pressure
Knowledgeable in graphics design and packaging
Knowledgeable with different Adobe software like Photoshop, illustrator, InDesign and
Flash.
Knowledgeable in photography and videography.
Knowledgeable in MS office
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Anatomy of a logo: The fundamentals of logo Design

-
Mapua Institute of Technology
May 31, 2016
Interactive Portfolio: Creating and Putting Up Together Artworks using

Adobe Encore
-Mapua Institute of Technology
- June 5, 2016
90
JOHN BRUCE H. PAREDES

B-23 L-24, Good Harvest Park Subd.
Ph2, Caloocan City
09261522721
johnbrucep@yahoo.com
mailto:ksquared_magrabu_14@yahoo.com
PERSONAL STATEMENT
A fresh graduate Multimedia artist proficient in doing animated short films and
Advertisement .Skilled with adobe creative suit and 3D application MAYA.
OBJECTIVE
As a specialist in Multimedia related to animation and advertising, getting a work

in a company related to it is an opportunity to enhance and contribute my skills
TECHNICAL SKILLS
3D Software:
MAYA,
GRAPHIC:
Adobe Flash, Adobe Illustrator, Adobe InDesign
VIDEO:
Adobe Premier, Adobe AfterEffects, Vegas Pro.
Presentation:
PowerPoint, Keynote
EDUCATION
Collegiate: Bachelor of Science in Multimedia Arts and Sciences

Major in Animation
Mapua Institute of Technology
S.Y.2013-2017
High-school: Sacred Heart Academy of Novaliches
S.Y.2009 2013
SEMINAR
Graphika Manila
2017
.Multimedia Visual Arts Seminars
91
November 27, 2015

REFERENCE
Portfolio will be present upon request.
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MAPUA INSTITUTE OF TECHNOLOGY

1002 Muralla St. Intramuros, Manila

Crafts & Coffee

a. Name and Address of the Business

b. Name and Address of the Principals

c. Nature of the Business

d. Mission and Vision

g. Statement of the Financing Needed

h. Statement of the Confidentiality Report

III. INDUSTRY ANALYSIS

a. Present Industry Situation

b. Future Outlook and Trends

d. Target Market Definition

IV. DESCRIPTION OF THE VENTURE

a. Products / Services Offered

b. Size of the Business

c. Office Equipment and Personnel

d. Background of the Entrepreneurs

VI. MARKETING PLAN AND BUSINESS STRATEGIES

g. Product Life Cycle

h. Boston Growth Matrix

c. Roles and Responsibilities of the Members

VIII. RISK ASSESSMENT

a. Projected Income Statement

b. Projected Balance Sheet

The business will be located at 188 Maginhawa Street, Sikatuna

B. Name & Address of Principals:

Darla Louise V. Rivera

C. Nature of the Business:

D. Mission & Vision:

(Primary logo with wordmark)

Long-term Bank Loan: Php 1,000,000.00

Common Stock: Php 2,700,000.000

Preferred Stock: Php 250,000.00

STARTING CAPITAL: Php 3,950,000.00

H. Statement of Confidentiality Report:

It is also acknowledged by the reader that the information to be published

A. Present Industry Situation

Total Coffee Consumption of Filipinos from 1990-2015

Following this increasing demand and consumption, popular coffee shops of

Household Final Consumption Expenditure

Household Final Consumption Expenditure

The Crafts Industry

Examples of creative and knowledge workers

Filipinos increasing disposable incomes can mainly be attributed to the growing

Household Final Consumption Expenditure

Household Final Consumption Expenditure

Economic State of the Philippines

Philippine Economic Growth from 2013-2016 (Q1)

Purchasing Power, according to Investopedia (2016), is the value of a currency

Future Outlook and Trends

consumers and Filipinos, in general, have started to be more discriminating in their

The population of students at different educational levels is expected to

The Philippine economy is expected to grow by a pegging economic growth at

Market Share by Player Type in Asean Countries

POPULATION BY AGE GROUPS IN

Population by Age Groups in Quezon City in the Year 2016

Distribution of Families by Income Class 2012

Income Distribution by Income Group and by Region, 2012

Minutes of Usage based on what Type

DESCRIPTION OF THE VENTURE

A. Products and Services Offered

Service Name and Products

COLD Coffee Based beverage

See attached resume at the Appendix