Executive Summary

OPPAgkaon   is   a   specialty   food  business   located  within   the  grounds   of   St.

Therese Educational Foundation of Tacloban, Inc. (STEFTI) in Brgy. 91, Abucay
Tacloban City, Philippines. The small business enterprise will be loosely described
as   a   “mini   stall”   that   will   prepare   and   provide   varieties   of   bite­sized   foods   and
snacks, and refreshing drinks, which are only found and sought at stalls in malls
like Lugaw ni Bossing and Zentea.

OPPAgkaon   will  hold   true  to  its   vision  of   revolutionizing   new   varieties  of
bite­sized   foods   and   snacks,   and   refreshing   drinks   that   will   be   offered   to   the
costumers with a twist of packaging and preparation of the products. The business’
vision is to offer unique kinds of snack that are not within the reach, sold at an
affordable   and   just   price,   and   will   satisfy   the   whole   STEFTI   Family.   The
entrepreneurs are not just providing a single product line which is the bite­sized
food and snacks, and jelly drinks, but also promoting the DIY product line.

OPPAgkaon will be making and securing a logo for the business as it is one of
the crucial characteristics of the business in order for the market to recognize and
remember the specialty food business enterprise that has been set­up within the
school campus grounds of STEFTI. Having a logo of the business enterprise will
legitimately   ensure   the   recognition   of   the   costumers   for   the   business   and   its
products, considering the large populace of competitors.

There   are   necessary   things   to   be   accomplished   by   the   entrepreneurs   of

OPPAgkaon in order to gain profit, and be successful. Through promotional efforts,
the entrepreneurs will cultivate interest among the market. The business is being
made known to the chosen potential market about its products, when it will open
and operate, and where the entrepreneurs will find a location on which will be done
through brainstorming, and getting ideas from the internet and social media such
as   Facebook.   Hence,   the   small   business   enterprise   will   generate   awareness   and
comprehension of its products.

This   plan   outlines   the   small   business   enterprise   concept,   philosophy,   and
forecasted financials. OPPAgkaon finds seed money of about Php1, 250 to launch
the business within February to March of the year 2018.
Description
OPPAgkaon will be preparing and providing new varieties of bite­sized foods
and   snacks,   and   refreshing   drinks   that   will   suffice   the   costumers’   cravings   and
thirst, and DIY products made by the new and young entrepreneurs  themselves
that will serve its aim to the market.

Objective
The objective of OPPAgkaon is to let the STEFTI Family have a taste of a
new and never before tasted varieties of bite­sized foods and snacks, and refreshing
drinks without the necessity to go to certain malls and public places, like Robinson’s
Place Tacloban, Savemore, and downtown.

Mission
OPPAgkaon is dedicated to provide varieties of bite­sized foods and snacks,
and   refreshing   drinks   to   satisfy   the   market’s   cravings,   leaving   them   assuaged,
while maintaining a friendly, fair and creative work environment, in which respects
diversities, new ideas and hard work.

Vision
Offering   unique   kinds   of   snack   that   are   not   within   the   reach,   sold   at   an
affordable and just price, and will satisfy the whole market, by revolutionizing bite­
sized foods and snacks, and refreshing drinks, leaving the costumers satisfied with
the quality products.

Target Market
The need to have a well­defined target market is more important than ever in
order for the entrepreneurs to build a concrete foundation of and on their business.
The considerations that the new and young entrepreneurs made on the business to
define their target market were by: (a) choosing specific demographic statuses—age,
location, sex, income level, or allowance— of the market and targets; (b) figuring out
the ones who have a need or want on the products of the business enterprise and
who are most likely to buy it; and (c) considering the psychographics of a person
which   are   the   personal   assets   including   the   personalities,   values,   attitudes,
interests,   lifestyle,   social   life,   and   behavior.   With   finally   figuring   out   the
considerations,   the   business,   OPPAgkaon,   has   decided   that   the   target   market
includes the percentage of the STEFTI Family: the Upper Primary, and Junior and
Senior High School students, and the faculty and staff.

Competitive and Situational Analysis
OPPAgkaon will be in their first day of operation with market research the
entrepreneurs have done within the premises of the school campus, making sure to
offer variety of bite­sized foods and snacks, and refreshing drinks such as cakes and
coffee   to   the   STEFTI   Family   that   could   satisfy   their   cravings   and   quench   their
thirst for at an affordable price since   bitter­sweet products will be offered within
February   and   March   and   with   the   special   celebration   of   Valentine's   Day   and
Summer Season. The products of the business will be valued and propositioned at a
same   for   less,   and   priced   either   at   a   lower   expense   since   the   costs   of   some
ingredients are already prepared and not that expensive. With the regards of the
bitter­sweet   products   by   yours   truly,   the   entrepreneurs   of   the   business   will   use
recyclable materials in packaging and in order to come up with less expenses.

Since OPPAgkaon will be using the mass marketing, one of the methods that
will   be   used   in   promoting   the   products   is   through   and   by   verbal   and   personal
advertising regarding the entrepreneurs bitter­sweet products. With this, there will
be more people who will be aware of the said business that could interest them in
purchasing   the   products   being   offered   by   the   business.   Regarding   the   probable
weaknesses   of   the   business,   the   entrepreneurs   will   be   encountering   trouble   in
managing the business since the it will be operating during class hours. Costumers
who want to buy at the OPPAgkaon sweet products could order in advance or make
reservations through the use of their cellular phones. This, it is the opportunity of
the business to have a bigger profitability.

Marketing Strategies 
Place
 The young entrepreneurs will most likely have a stall on the grounds
of STEFTI and roam around the campuses to find costumers who would like
to purchase the products, for easier access and less exasperation. The location
assigned   to   the   entrepreneurs   will   serve   as   a   setting   for   all   the  business’
activities, and processes needed in achieving the desired selling products. It
will  be   at   its   utmost   easy   access   that   will   allow   the  customers   to   quickly
make purchase.

Products
OPPAgkaon will have two product lines for the specific five kinds of
Theresian market  it  serves. The two product  lines  include bite­sized foods
and snacks, and refreshing drinks, and DIY product line. For the bite­sized
foods   and   snacks,   we   have   three   (3)   varieties,   namely:   the   graham   balls
covered   with   desiccated   coconut   and   powdered   milk,   and   red   velvet   and
chocolate cake bites, so moist and delicious that you’d be asking for more. For
the refreshing drinks, we have the coffee jelly. This is 70% drink and 30%
jelly. The creamy and milky taste of the drink would work well with the soft
coffee flavored gelatin, which students, faculty and staff would surely enjoy
and be delighted. All of these would work well when paired together. The DIY
product line will include cups, cards and other items.

The products that are believed to be unique and affordable, namely the
coffee   jelly   and   cake   bites,   will   be   the   business   in   gaining   a   competitive
advantage since these products are no where to be found or if found, these are
only   available   at   Robinson’s   Place   Tacloban,   Savemore   and   downtown.
OPPAgkaon will offer the products to the students at its best quality, and
since the Theresians are sometimes not into buying these kinds of product,
the entrepreneurs will offer them a price that is just and affordable.

The   entrepreneurs   plan   to   enhance   the   products   by   having   them

unique packaging and taste. Although, they are also offering common local
products—coffee, cake, etc.—since it was found to be what the students want
and need inside the premises of STEFTI.

The   entrepreneurs   are   also   going   to   pursue   supplies   found   at   SM

Supermarket,  Robinson’s  Place  Tacloban   Supermarket   and  public  and  wet
markets   in   downtown   area   of   Tacloban   to   ensure   safe   and   great   quality
products. The supplies of the DIY items would mostly be recyclable materials
to promote environmental awareness to the market.

Pricing
The business will be using cost­plus pricing model because it does not
require deep market understanding and provides easy pricing. Through this,
the business will have a very low possibility of coming up with a loss rather a
higher chance on gaining a profit since the price is based on the expenses and
costs of the business. In cost­plus pricing, the selling price of the product is
determined by adding a profit margin to the cost per unit of the product. Cost
per unit includes actual direct materials, actual direct labor, actual variable
manufacturing overheads, and allocated fixed manufacturing overheads. In
calculating   the   profit   margin,   the   gross   profit   will   be   calculated   first   by
subtracting sales revenue and costs of goods sold. Then, gross profit will be
divided to sales revenue, and will be multiplied by 100 to come up with a
mark­up   rate.   Consequently,   the   entrepreneurs   now   get   the   price   of   the
product.
Promotion
One   way   to   boost   a   start­up   small   business   enterprise   like   the
OPPAgkaon is through and by promotion. To attract costumers, the business
must have a promotional strategy in order to promote the business. First and
foremost, we will by giving free samples of our products mainly the coffee
jelly and cake bites during the first hour of the business operation on its very
first day. This is so that the customers will be able to see and understand
what product line the business is really being sold to them. Additionally, the
OPPAgkaon   will   also   add   one   free   product   to   the   customers   who   will   be
having a Php30 and above purchase. Nonetheless, promotion of the business
is done verbally, most likely, before and during the operation of the business.

Positioning
To students who want to taste new varieties of bite­sized foods and
snacks, and refreshing drinks, OPPAGkaon offers a mixture of local treats,
namely coffee and cake bites, and when matched, they will surely be satisfied
and   won’t   have   any   regrets   purchasing   the   products.   Also,   the   business
considered   offering   DIY   reusable   and   recyclable   packaging   since   it   would
 operate   in   the   time   of   Valentine   and   Summer   season.   Consequently,
OPPAGkaon   is   suitable  for   people   who   have  a   sweet  spot   for   bitter­sweet
products.   The   business   will   surely   satisfy   the   market   with   great   quality
product lines.

Distribution Channel(s)
The   entrepreneurs   of   the   business   will   use   the   direct   to   consumer   model,
where as the producers sell its products directly to the end costumers, allowing the
costumer   to  be   able   to  buy   the  good(s)  from   the   producer   itself  and  the   type   of
distribution channel that the business will use is the direct distribution channel.
They   will   use   this   type   of   distribution   channel   so   that   the   entrepreneurs   can
develop relationships with the costumers and make use of their communication and
negotiation skills to close the sales of their products, also costumes are demanding
better experience and direct sales.

Delivery System and Capabilities
OPPAgkaon offers a snack and DIY product line for the STEFTI Family. The
costumers   can   avail   the   products   of   OPPAgkaon   by   visiting   where   the   stall   is
located and established inside the school’s campus premises. The entrepreneurs will
also   entertain   orders   via   SMS   from   the   costumers   who   are   busy   and   have   no
adequate time of visiting the stall and make the order and purchase by themselves.
In which the sales officers will be the ones in charged of informing the customers if
their order is ready or not yet and if the products are not anymore available within
the certain day of purchase. However, these kinds of delivery will only be available
to the costumers within the premises of STEFTI, alone.

Financial Plan
OPPAgkaon will have an initial start­up cost of approximately Php1, 250 of
which 90% will come from the young entrepreneurs’ financial support from their
parents, since they do not have yet their own income, consequently the 10% will
come from their own savings which were started on the start of the school year
2017­2018.

The financial costs of the business is estimated at an average value such that
the entrepreneurs do not want to spend too much without, however, compromising
the sufficiency of fund for their business, most especially with the utility expense,
miscellaneous fees and purchases of ingredients, which are needed in order for the
business to successfully operate.

CAPITAL: 1, 250
Packaging ;
13.00% Purchase of
Hygiene
Equipment;
6.00%
Miscellaneou
s Fees;
40.00% Promotional
Fees; 7.00%

Purchase of
Utilities Food
Expense; Ingredient;
7.00% 27.00%

Risk Factors
Although   any   new   venture   carries   an   element   of   risk,   an   entrepreneur
looking   to   open   a   specialty   food   business   enterprise   faces   additional   challenges
unique to the industry.

Competitors
The competitors of OPPAgkaon during the business operation will be
the businesses that offer the same product lines and services and also the
possible   substitute   products   that   they   will   offer.   These   are   labeled   as
competitors   because   as   mentioned,   the   competitor   could   be   a   business
offering a substitute or a similar product that has different way of packaging
and   design,   or   a   way   of   promoting   their   products   making   the   idea   of   the
entrepreneurs of this business a redundant one.

Although,   competitors   like   these   are   a   big   threat   to   the   small

enterprise business, the entrepreneurs have decided to compete with them by
stepping up the marketing of OPPAgkaon, making more effort and time in
the   packaging   and   promotion   of   the   product,   and   advertising     what   the
business   itself   is,   the   products   of   OPPAGkaon   are   and   why   the   should
purchase the products.  Knowing who the competitors are, and what they are
offering   would   make   the   entrepreneurs   improvise   so   that   the   products,
services and marketing of the business stand out and unique, and help them
setting the price at its utmost competitive advantage.

Inadequate Capital
Lots   of   new   specialty   food   business   owners   set   out   with   a   solid
business   plan,   but   lack   adequate   funds.   With   this,   they   can   vigorously
underestimate how much it costs to not just open and continue the business
operation,   or   rather   keep   it   running   just   during   the   first   few   crucial
operational   months.   Many   specialty   food   businesses   struggle   to   find   their
ground in the first months or years, while the owner makes necessary tweaks
in the menu or staffing, and customers find out about the place. To minimize
the risk, the specialty food business should plan to have several days, months
and years of funding to cover the costs of food and miscellaneous bills. It can
take a while to simply break even with another or a new food stall, much less
make a profit.

Location
To those starting out in the snack business, location might appear to
be one of the most important aspects to success. While this perspective is
considered, location might, as well, also work against the owners. Choosing a
location that very popular for snack stalls means the competition becomes
stiffer. Owners should select the location based upon the type of product lines
they wish to sell, and price the products accordingly.

St. Therese Educational Foundation of Tacloban, Inc.

“Where heart and mind grow best”

SEC Registration No. C200101194
Pre­Elementary & Elementary DepEd Recognition No. 14 s. 2002
Secondary DepEd Recognition No. 008 s. 2009

BUSINESS PLAN
Technology and Livelihood Education (TLE)

12:40­1:40 MONDAY­THURSDAY

Submitted by:

AGABE, AZRA JAN NICOLE V.
BALUYOT, RAY CAESAR PAOLO A.
QUERUBIN, FRANCHEZCA ALEXINE E.
ROSALES, RAVEN JUDE U.

Corinthians