profea2 tooty sweety revised

Table of Contents

CHAPTER 1: Project Summary ................................................................ 1 1.1. Brief description of the Project ............................................................................................ 1 1.2. Management Aspects.............................................................................................................. 1 1.3. Marketing Aspects ................................................................................................................... 1 1.4. Technical Aspects ................................................................................................................... 2 1.5. Financing Aspects (total capital amount only) ................................................................ 2

CHAPTER 2: Project Timetable and Status ........................................... 3 CHAPTER 3: Management Aspects ......................................................... 4

3.1. Management during the Pre-Operating Period ................................................................ 4 3.1.1. Registration of Business ................................................................................................ 4 3.1.2. Obtaining of Financing ................................................................................................... 4 3.1.3. Plant Site Acquisition ...................................................................................................... 5 3.1.4. Building Construction ..................................................................................................... 5 3.1.5. Machinery Supplier Selection ....................................................................................... 5 3.1.6. Order and Receipt of Machinery .................................................................................. 5 3.1.7. Machinery Installation ..................................................................................................... 6 3.1.8. Materials Supplier Selection ......................................................................................... 6 3.1.9. Advertising (For Open Positions) ................................................................................ 6 3.1.10. Hiring of employees .................................................................................................... 6 3.1.11. Advertising (For Products) ........................................................................................ 7 3.1.12. Trial Run ......................................................................................................................... 8

3.2. Management During the Operating Period ........................................................................ 9 3.2.1. Type of Business Organization and Reason for Choice ............................................ 9 3.2.2. Internal Organization ........................................................................................................... 9 3.2.3. Labor ..................................................................................................................................... 12

CHAPTER 4: Marketing Aspects ............................................................ 13 4.1. Demand ..................................................................................................................................... 13 4.2. Consumption for the past years. ....................................................................................... 14 4.3. Projected consumption for the next three years upon start up. ............................... 15

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4.4. Method of projection used and factors considered ...................................................... 15 4.5. Comparison of projection with competitor/demand ..................................................... 15 4.6. Prices......................................................................................................................................... 17 4.6.1. Cost of production ............................................................................................................. 17 4.7. Marketing program/Plan ....................................................................................................... 17

4.7.1. Marketing Objectives .................................................................................................... 17 4.7.2. Strategic Marketing Directions ................................................................................... 18 4.7.3. Marketing Programs ...................................................................................................... 19

4.8. Channels of Distribution ...................................................................................................... 27 4.9. Packaging................................................................................................................................. 28 4.10. Projected Sales Quantity for the Next Three Years .................................................. 28

CHAPTER 5: Technical Aspects ............................................................ 32 5.1. Product ..................................................................................................................................... 32 5.2. Product Specifications and Principal Uses..................................................................... 32 5.3. Product Quality and Quantity ............................................................................................. 33 5.4. Manufacturing Process ........................................................................................................ 34

5.4.1. Process Flow for Cupcake ........................................................................................... 34 5.4.2. Process Flow for Cheesecake .................................................................................... 36 5.4.3. Process Flow for Brownies ......................................................................................... 37

5.5. Processes used in existing plants .................................................................................... 38 5.6. Plant Size and Production Schedule ................................................................................ 38 5.7. Annual and Daily capacity at a given number of shifts and the number of operating days per month ............................................................................................................... 41 5.8. Machinery ................................................................................................................................. 42 5.9. Specifications and Functions ............................................................................................. 42 5.10. Selection of Supplier ......................................................................................................... 43 5.11. Quotations from Supplier ................................................................................................ 43 5.12. Delivery, Payments, and Other Arrangements with the Suppliers ....................... 45 5.13. Plant Location ..................................................................................................................... 47 5.14. Plant Location Map ............................................................................................................ 49 5.15. Desirability of the Location ............................................................................................. 49 5.16. Alternative Locations ........................................................................................................ 50 5.17. Plant Layout ......................................................................................................................... 50

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5.18. Structures ............................................................................................................................. 50 5.19. Raw Materials ...................................................................................................................... 51 5.20. Consumption of Raw Materials ...................................................................................... 52 5.21. Specifications ..................................................................................................................... 58 5.22. Proof of Reliability of Raw Materials ............................................................................. 60 5.23. Alternative Raw Materials ................................................................................................ 61 5.24. Availability of Supply ........................................................................................................ 61 5.25. Supplier ................................................................................................................................. 62 5.26. Material Cost Table ............................................................................................................ 63 5.27. Quotations ........................................................................................................................... 66 5.28. Utilities .................................................................................................................................. 67 5.29. Waste Disposal ................................................................................................................... 67

CHAPTER 6: Financing Aspects ............................................................ 69 6.1. Sources of Financing for the Project ................................................................................ 69

CHAPTER 7: Financial Statement .......................................................... 70 7.1. Statement of Financial Position First Year and Three Years Forecast ................ 70 7.2. Income Statement First Year and Three Years Forecast ......................................... 71 7.3. Statement of Cash Flow First Year and Three Years Forecast ............................... 72 7.4. Financial Ratios First Year and Three Years Forecast ............................................. 78 7.5. Financial Ratios Analysis Story ......................................................................................... 79

CHAPTER 8: Social Desirability of a Project ........................................ 81 8.1. Government Revenues ......................................................................................................... 81 8.2. Foreign Exchange Reserves ............................................................................................... 81 8.3. Related Industries .................................................................................................................. 81 8.4. Consumers ............................................................................................................................... 81 8.5. Employees ............................................................................................................................... 82

CHAPTER 9: Acknowledgement ............................................................ 83 CHAPTER 10: Appendices ................................................................... 84

10.1. Tooty Sweety Transactions Year 1 ................................................................................ 84 10.2. Computations For Year 1 ................................................................................................. 85

CHAPTER 11: Bibliography .................................................................. 90

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List of Figures

Figure 5-1 Process Flow for Cupcake (1st Half) ............................................................................ 34 Figure 5-2 Process Flow for Cupcake (2nd Half) ............................................................................. 35 Figure 5-3 Process Flow for Cheesecake (1st Half) ....................................................................... 36 Figure 5-4 Process Flow for Cheesecake (2nd Half) ...................................................................... 36 Figure 5-5 Process Flow for Brownies (1st Half) ............................................................................ 37 Figure 5-6 Process Flow for Brownies (2nd Half) ........................................................................... 37 Figure 5-7 Gantt chart for the whole Production of Tooty Sweety (8 hrs) .............................. 38 Figure 5-8 Gantt chart for the Production of Cupcake of Tooty Sweety ................................. 39 Figure 5-9 Gantt chart for the Production of Cheesecake of Toory Sweety .......................... 39 Figure 5-10 Gantt Chart for the Production of Brownies of Tooty Sweety ............................. 40

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List of Tables

Table 2-1 Gantt Chart of Project Activities ........................................................................................ 3 Table 4-1 Sales of Baked Goods by Category: Volume 2008-2013 ........................................... 14 Table 5-1 Tooty Sweety's Annual and Daily capacity at a given number of shifts and the number of operating days per month ............................................................................................... 41 Table 5-2 Product Specification for Cupcake ................................................................................. 59 Table 5-3 Product Specification for Cheesecake .......................................................................... 59 Table 5-4 Product Specification for Brownies ................................................................................ 60 Table 5-5 Material Cost Table for Cupcake ..................................................................................... 63 Table 5-6 Material Cost Table for Cheesecake ............................................................................... 64 Table 5-7 Material Cost Table for Brownies .................................................................................... 65

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List of Images Image 4-1 Tips, Ideas and Cool Stuff for Desserts to be Featured in our Website .............. 21 Image 4-2 New and Featured Products Section in our Website ................................................ 21 Image 4-3 List of Products for Online Order ................................................................................... 22 Image 4-4 Product Display ................................................................................................................... 23 Image 4-5 Product Display ................................................................................................................... 23 Image 4-6 Movie-Themed Cookies .................................................................................................... 24 Image 4-7 Television Show Inspired Cookies................................................................................. 24 Image 4-8 Novel-Themed Dessert ...................................................................................................... 25 Image 4-9 Holiday Cookies .................................................................................................................. 25 Image 4-10 Packaging for Individual Orders .................................................................................. 28 Image 4-11 Packaging for Group Orders ......................................................................................... 28 Image 5-1 Dough Roller ........................................................................................................................ 42 Image 5-2 Bread Slicer .......................................................................................................................... 42 Image 5-3 Cake Mixer ............................................................................................................................ 43 Image 5-4 Location of Tooty Sweety ................................................................................................. 48 Image 5-6 Location Map of Tooty Sweety ........................................................................................ 49 Image 5-7 Plant Layout of Tooty Sweety ......................................................................................... 50

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CHAPTER 1: Project Summary

1.1. Brief description of the Project

Tooty Sweety is a dessert shop located at East II Lakeside Evozone Nuvali,

Sta. Rosa, Laguna. We can be described as a quick-service restaurant where

customers sit around a bar and watch their desserts being made. The show, as

well as the dessert, is our main selling point.

Tooty Sweety sells gourmet desserts coupled with exceptional customer

service in a comforting atmosphere. Customers can dine-in and watch the chef

create their dessert. We also offer carry-out to prepare our desserts at home or

have a special cake for a celebration.

1.2. Management Aspects

The management aspect focuses on the formation of the business including

the type of business, the formation of the internal structure of the business, the

owners and the labor needed. In this paper, a gantt chart on the preparation of the

business will be presented. An organizational digaram will also be presented and

the individuals roles and functions will be discussed.

1.3. Marketing Aspects

The marketing aspects objective is to establish the annual quantity of the

product which is expected to be sold by the business in the future, the selling price

at which the product can be sold and the marketing program which have to be

adapted in order to sell the given quantity at the given price. The study made use

of the geometric forecasting method based on the demand of the products in the

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industry. The price was derived after subtracting the costs incurred and is

competitive to existing businesses in the industry. The promotion of the business

and the products will be included at the end of the study and the channels of

distribution will also be presented.

1.4. Technical Aspects

The technical aspects include the product and its specifications, the quality,

quantity and principal uses of the products, the plant size and location of the

business. It also show the plant layout design, the raw materials and equipment

needed in producing the products and the suppliers of the business. At the end of

this study, a detailed process flow of the business main products including

cupcake, cheesecake and brownies will be presented. A Gantt chart of the

production schedule of the business in an 8-hour basis and the production process

of each product is presented at the end of the study.

1.5. Financing Aspects (total capital amount only)

Tooty Sweety Corporation will have a total start-up capital of 3 500 000

through the contributions of the owners and through loaning from Metrobank.

The owners will give a capital of 500 000 each. And then the business will

obtain a loan of 2 000 000.


CHAPTER 2: Project Timetable and Status

Table 2-1 Gantt Chart of Project Activities


CHAPTER 3: Management Aspects

3.1. Management during the Pre-Operating Period

3.1.1. Registration of Business

It is important to register the business to avoid any legal problems once

the business operations start.

It will be an opportunity for the competitors to disrupt and delay

operations by notifying the proper authorities about the necessary

registrations of the business.

Steps:

Get certificate of registration for the business name through Security

and Exchange Commission (SEC)

Visit Barangay Hall, Local Government Unit, and Bureau of Internal

Revenue (BIR) for necessary permits/clearance

Register employees to SSS, DOLE, HDMF, and PhilHealth

3.1.2. Obtaining of Financing

In order for a small business to get off the ground, or to keep operating,

it must have financing.

Amortization Schedule for Tooty Sweety business loan.

Loan amortization simply means figuring out how much interest and

principal you have to pay on a loan each time the loan comes due, along

with how much the balance is reduced.


3.1.3. Plant Site Acquisition

Selecting of the best location for the placement of Tooty Sweety

business facilities.

Commercial zoning

Right of way procurement (permits and agreements)

3.1.4. Building Construction

Building construction

Preparing for and forming buildings and building systems.

Planning for construction

Design/layout of desired concept of the building

Financing for the acquisition of construction materials and labor

Execution of building construction

3.1.5. Machinery Supplier Selection

Review and evaluate available machine supplier product catalogs

Obtain quotations and proposals from selected or preferred suppliers

3.1.6. Order and Receipt of Machinery

Upon receipt of quotations prepare formal purchase orders from the

suppliers

Request for machine test or trial for evaluation of machine

specifications

Receipt delivery of ordered machineries after suppliers order lead time


3.1.7. Machinery Installation

Schedule machine installation and pre-testing

Inspect required electrical and mechanical requirements

Commercial installation and testing of the machine/equipment ordered

3.1.8. Materials Supplier Selection

Searching for available supplier that will satisfy the required raw

materials

Obtain quotations and proposals from selected or preferred suppliers

3.1.9. Advertising (For Open Positions)

Social network advertisements

Flyers

Posters

Tooty Sweety Website

3.1.10. Hiring of employees

Includes Human Resource planning to identify what the organization

requires in terms of the numbers of employees needed and their

attributes (knowledge, skills and abilities) in order to effectively meet

job requirements.

Identifying and setting of the proper salary per employee

Job interview of potential candidates for employee

Hiring the right people for the right job


Job description will be recorded in order to assess performance of the

employee even after they have been hired.

Induction to help the new staff member settle quickly

Training and development programs

3.1.11. Advertising (For Products)

Online advertising

o Posting ads on websites that receive heavy traffic is one way to

get the word out about your business.

Newspaper Ads

o A daily and weekly newspaper ad allows targeting specific

geographic neighborhoods. Attaching an incentive, such as a

coupon, to the ad can help track the ad's effectiveness.

o Purchasing an ad in a section of the newspaper that is relevant to

the business

Radio Advertisement

o A catchy jingle

o Quick tag line

Television Advertisement

o High cost but will ensure reach to customers who would not

respond to radio

Public Speaking

o Offer services to organizations that could benefit from one of our

workshops or lectures


o Bringing of promotional materials to the event to encourage

audience to spread the word about the product

Door Hangers and Flyers

o Canvassing the neighborhood

o Placing flyers in mailboxes

o Hanging ads on doorknobs

Event Sponsorship

o Acknowledgement in the event program

o On-site location for sample product

o Appearance of company logo on event posters

o Stamp that bears the company logo

Word of Mouth Advertising

o Hiring people to talk about the product of the company

o Hired marketers can go to coffee shop by pairs and talk audibly

about the product

3.1.12. Trial Run

Operates for a couple of days to learn what will be done in the shop and

see if the business produces positive feedbacks

o A test drive for both the employee and the owner of the business

o It will saved money in the long run because of fewer hiring mistakes


3.2. Management During the Operating Period

3.2.1. Type of Business Organization and Reason for Choice

Tooty Sweety is a corporation as Corporations have many advantages

over partnerships and sole proprietorships.

Advantages of Corporation Vs Sole Proprietorship and Partnerships:

o Shareholders in a corporation are not liable for corporate debts

o Corporations offer self-employment tax savings

o Corporations have continuous life

o Corporations make raising money easier

3.2.2. Internal Organization

Board of Directors

President

Accounting Manager

Marketing Manager

Advertising Sales Supervisor

Sales Staff

Operations Manager

Head Baker

Assistant Baker

Supervisor

Cashier Delivery Person Waiter

H.R. Manager


Board of Directors (3) (Angel Lizardo) (Jamaica Lafuente) (Kurt Lazarte)

governing the organization by establishing broad policies and objectives

selecting, appointing, supporting and reviewing the performance of the

President

ensuring the availability of adequate financial resources

approving annual/monthly budgets

accounting to the stockholders for the organizational performance

setting the salaries and compensation of corporation management

President (1) (Angel Lizardo) - reports to the Board of Directors regarding the

performance of the company. Leader, director, decision maker, manager, and

executor.

Accounting Manager (1) (Angel Lizardo) responsible for the

management sales, relationship with particular customers

Marketing Manager (2 ) (Kurt Lazarte) (Jamaica Lafuente) responsible

for influencing the level, timing, and composition of customer demand

and may act as the overall general manager of his/her assigned product

1. Advertising (1) (recruit) persuade, encourage, drive consumer

behavior with respect to a commercial offering

2. Sales Supervisor (1) (recruit) work directly to a sales team,

lead the team to make its quotas, motivating the team, and

correcting any problems that come up within it.


Sales Staff (1) (recruit) assist the superior in carrying out

an assigned task, responsible in sales

Operations Manager (2) (Kurt Lazarte) (Angel Lizardo) ensuring that

the business operations are efficient in terms of using as few resources

as needed, and effective in terms of meeting the customers

requirements.

1. Head Baker (1) (Jamaica Lafuente) manages and coordinates

work done by other baker. Setting the right proportions for

ingredients, and overseeing work being done by the bakers.

Also, involved in most steps of food preparation (mixing

ingredients, etc.).

Assistant Baker (5) (relatives) assist and help the head

baker in preparation and production of products by

customers specifications and instructions in the time

frame.

2. Supervisor ( Kurt Lazarte) supervise the performance of the

personnel of the shop while operating

Cashier (2) (recruit) keeping the record of money the

shop had prior and after operation

Delivery Person (2) (former drivers) helps in delivering

products to customers location

Waiter (2) (recruit) take orders and serve foods and

beverages to customers at tables


Human Resource Manager (2) (Kurt Lazarte) (Jamaica Lafuente)

overseeing department functions and managing employees

3.2.3. Labor

COMPENSATION:

There will be a 2% increase in salary annually. The following are included in this

salary increase:

Christmas Bonus

Overtime and Night Differential Pay

SSS Premiums

Retirement Fund

Medical Insurance

Salary: Daily Monthly Yearly

Advertising 1 12,000.00 144,000.00 Sales Supervisor 1 15,000.00 180,000.00

Sales Staff 1 12,000.00 144,000.00 Assistant Baker 5 75,000.00 900,000.00

Cashier 2 681.00 17,706.00 212,472.00 Waiter 2 681.00 17,706.00 212,472.00

Delivery Person 2 681.00 17,706.00 212,472.00 Owner 3 60,000.00 720,000.00

17 2,725,416.00


CHAPTER 4: Marketing Aspects

4.1. Demand

Filipinos love to eat and food is the basis of their social life. At the same time,

Filipinos are known to love eating sweet food and because of this, Filipinos started

doing their own desserts depending on how they want it to be. According to AIB

International (2013), 70% of consumers eat dessert at least once a week, with 36%

twice or more; mid-evening snack (54%), afternoon (42%), late at night (40%), and

mid-morning (33%).

Moreover, the stronger performance of the Philippine economy helped to fuel the

consumption of baked goods in 2013. As stated in Euromonitor International (2014),

it is expected that retail current value sales will jump by 6%, as Filipinos are starting

to consume bread, pastries and cakes more frequently. This is especially noted

amongst busy middle-income urban consumers, who prefer to have sandwiches

instead of rice and other dishes in order to save time on food preparation.


4.2. Consumption for the past years.

Table 4-1 Sales of Baked Goods by Category: Volume 2008-2013

'000 tonnes 2008 2009 2010 2011 2012 2013 Bread 130.99 130.58 132 135.61 139.49 144.14 - Bread Substitutes - - - - - - -Packaged/Industrial Bread 51.84 52.62 53.57 56.78 60.25 64.46 - Unpackaged/Artisanal Bread 79.15 77.96 78.43 78.82 79.24 79.68 Cakes 30.18 30.09 30.36 30.63 30.9 31.21 - Packaged/Industrial Cakes 13.99 14.06 14.18 14.32 14.48 14.65 - Unpackaged/Artisanal Cakes 16.18 16.02 16.18 16.31 16.43 16.56 Pastries 43.65 43.62 44.2 44.92 45.69 46.53 - Packaged/Industrial Pastries 28.26 28.54 28.97 29.55 30.2 30.93 - Unpackaged/Artisanal Pastries 15.39 15.08 15.23 15.37 15.49 15.6

Baked Goods 204.82 204.29 206.56 211.15 216.08 221.87

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store

checks, trade interviews, trade sources


4.3. Projected consumption for the next three years upon start up.

Current Consumption Projected Annual Quantity for 2017-2019

(pieces per year) Product 2016 2017 2018 2019 Cupcake 123,552 135,907 176,679 265,019 Cheesecake 38,376 42,214 54,878 82,317 Brownies 131,664 144,830 188,280 282,419 Total 293,592 322,951 419,837 629,755

4.4. Method of projection used and factors considered

By knowing the capacity of the business, the annual sales can be projected. With the

ratio of the business annual sales with the industry sales, the target market percentage

was determined. However, the sales of the business was obtained by setting a

percentage of increase per year. The owners set a 10% increase, 30% increase and 50%

increase on the sales of the business for the years 2017-2019 respectively. Through the

use of the total annual sales, the market percentage was determined by comparing it to

the industry sales.

4.5. Comparison of projection with competitor/demand

Although Tooty Sweety is offering something new in the baked goods industry, we do

share similarities, and therefore compete with several kinds of quick-service dessert

businesses:

1. Bakeshop and Restaurants: any restaurant offering dessert such as Contis

Bakeshop & Restaurant (Nuvali).

2. Ice Cream Shops: Dairy Queen (Laguna Central).


3. Donut and Coffee Shops: any place coffee and pastries are available for carry-

out or dine-in consumption including Starbucks (Paseo), Figaro (Laguna

Central), Krispy Kreme (Nuvali) and Auntie Annes (Philippines).

4. Supermarket: in-store bakeries as well as frozen specialty desserts offer some

competition like The French Baker (South Supermarket).

5. Bakeries: free-standing traditional bakeries such as Wild Flour Caf + Bakery

(Philippines), BreadTalk (Nuvali), Goldilocks Bakeshop (Paseo) and Red

Ribbon (Paseo).

Although Tooty Sweety is opening up a new niche in the baked goods industry,

there is no doubt that we are competing with a variety of similar businesses. We need

to compete against the ideas that dessert is something that only follows a special

dinner and needn't be any better than a frozen cake. We want every day to be a

reason to celebrate. And being able to watch your gourmet dessert be prepared by a

chef is a treat that appeals to everyone.

While price may be a factor when competing against Ice Cream and Coffee

Shops, these same consumers who are willing to pay a high price for a latte or a scoop

of ice cream are already conscious of a better quality product. We believe they will

be equally as willing to spend a little extra for an extraordinary dessert in a warm and

friendly setting.

The comfort factor also plays an important role in consumer decisions about

sweets. Both the atmosphere and staff of Tooty Sweety are warm & friendly. And the

menu will reflect "comfort food" desserts as opposed to intimidating desserts that


resemble architectural colossi. We will use the highest quality products; sometimes

paring the ordinary with the exotic, but we will always present our desserts in a unique

and comforting manner.

4.6. Prices

4.6.1. Cost of production

Cost of Cupcake per Piece 15.8809937 Price of Cupcake per Piece 50.00

Material Ratio 31.76%

Cost of Cheesecake per Piece

37.8341635

Price of Cupcake per Piece 70.00


Cost of Brownies per Piece

15.8327462

Price of Cupcake per Piece

50.00


4.7. Marketing program/Plan

4.7.1. Marketing Objectives

The perishable products that will be offered should satisfy the customers

expectations from a newly established dessert shop.

The perishable products that will be offered should be sold at least 80% of the

total capacity of production in the first year of the business.

At the first year to fourth year of the business, the sold perishable product

should increase up to 95% of total production in order to minimize cost.


The company will participate on parties or occasions in nearby locations such

as anniversary parties, birthdays, christenings, weddings, etc. in the third year

of the business. This will build up the credibility of our business.

Expansion of building and further improvement of our personnel in the 5th to

10th year of the business in order to have a quick and effective work and

respond to customers requirements inside the shop

Introduce new excellent quality product every month

Allocate at least three to five percent capital expenditure on marketing efforts

to further enhance market development

4.7.2. Strategic Marketing Directions

We need to set up a website for Tooty Sweety Corporation and that will be

www.tootysweety.com.ph. In this website, we can feature our products

themes per week, online catalogs which will feature our new products and

recipes, and nutritional facts, our corporate vision and mission, our promos

every occasion, our present customers and suppliers, our awards through the

years, and our Corporate Social Responsibility activities as well as

Environmental Objectives and Targets. This website will enable consumers to

order our products through delivery and as a channel to give gifts to their loved

ones. In doing this, we can set the appeal to all website surfers on the

companys amiability and accomplishments.

We will join the exhibits at different conventions and bazaars. We will also be

putting stalls in the different schools activities to further expose our products.


http://www.tootysweety.com.ph/

4.7.3. Marketing Programs

4.7.3.1. Action Plans

2016

Month/Year Plan Cost December 2015 Set up a website for Tooty Sweety 329,025.00

1st Week of February 2016 Launch of website

1st Week of February 2016 1st Promo of our Products (Opening Sale) 5,000.00

Posters and Fliers will be printed whenever there are new products Posters and Fliers 200,000.00

Once Every Four Months Taste Test in Different Locations

5,000.00 Total: 15, 000.00

Annually

Total Cost 534,025.00

Sales 14,258,880.00

Start-up Capital 10,000,000.00

Total Funds 24,258,880.00

Ratio 2.20%

2017 and 2018

Month/Year Plan Cost

Whole year Maintenance of website 100,000.00

2nd Week of February 1st Promo of our

Products (Opening Sale)

5,000.00



During Anniversaries (February starting 2017) Promos 20,000.00

Once Every Four Months Taste Test in Different Locations 5,000.00 Total:

15000 Annually


2017 2018

Sales 14,544,057.60 14,980,379.33 Capital 4,500,000.00 3,000,000.00 Total 19,044,057.60 17,980,379.33 Ratio 1.16% 1.22%

2019

Month/Year Plan Cost

Whole year Maintenance of website 100,000.00

2nd Week of February 1st Promo of our

Products (Opening Sale)

5,000.00

Will depend on the schedule of event & number of consumers (On the third year of business - 2019)

Put up stalls for different events

(Bazaars, Hotels and School Activities)

5,000.00


During Anniversaries (February starting 2017) Promos 20,000.00

Once Every Four Months Taste Test in Different Locations 5,000.00 Total:

15000 Annually


Sales 20,093,185.66 Capital 600,000.00 Total 20,693,185.66 Ratio 1.09%


4.7.3.2. Website Set-up

The IT department of Tooty Sweety Corporation will be the one to design the

website and register it.

Image 4-1 Tips, Ideas and Cool Stuff for Desserts to be Featured in our Website

Image 4-2 New and Featured Products Section in our Website


Image 4-3 List of Products for Online Order

4.7.3.3. Product Showroom

In our shop, we will allot a space for the display of desserts especially

for the new products. Also, by participating in different bazaars in schools

and in different malls, our products will be exposed to different markets and we

will be able to know their response. If the response is slow and we cannot get

the desired increase in orders, then an adjustment in the marketing plan should

be done.


Image 4-4 Product Display

Image 4-5 Product Display


4.7.3.4. Dessert by Themes

Movies

Television

Image 4-6 Movie-Themed Cookies

Image 4-7 Television Show Inspired Cookies


Books

Holidays and Events

Image 4-8 Novel-Themed Dessert

Image 4-9 Holiday Cookies


4.7.3.5. 4Ps

Product

The company will be producing high quality products. The company will

make sure that the consumers will be satisfied with the products that we will

be producing. New and innovative products will be introduced to the market

every month as part of the development of the company. The business will

also produce products that are not harmful to the consumers but rather will

improve their health. In order to do so the supplies used will be properly stored

and the fruits and other dairy products will be fresh. The products will be

packaged in a paper box as part of our contribution to the environment.

Price The price of our products will be competitive to the prices of our

competitors. From time to time, the company will be having different promos

in order to increase sales and promote the business.

Place Tooty Sweety will be located at the Lakeside Evozone, Nuvali, Sta. Rosa,

Laguna. The business will also market its products using different online and

offline approaches which include:

Online: website, e-mail marketing campaign, web video ad, online

catalogs, etc.

Offline: brochures, menus, posters and flyers, business cards.


Promotion

Our current promotional plans include but are not limited to:

Create online and offline press releases to introduce our business

Facebook, Twitter, Instagram, Official Website

Ads on Google, and different sites

Coupon offers and promos, both online and offline

Premiums, giveaways, incentives

Magazine and newspaper ads

Stalls to different events in schools, bazaars and malls

Taste test in different locations

4.8. Channels of Distribution

Products will be delivered via land transportation.

o Orders

4.9. Packaging

Individual orders will be delivered in fancy boxes while group orders will be delivered

in rectangular boxes.

Image 4-11 Packaging for Group Orders

4.10. Projected Sales Quantity for the Next Three Years

Product Price per Piece Quantity (pieces)

Annual Sales Daily Monthly Yearly

Cupcake 50.00 396 10,296 123,552 6,177,600.00

Cheesecake 70.00 123 3,198 38,376 2,686,320.00

Brownies 50.00 422 10,972 131,664 6,583,200.00

Total 15,447,120.00

Image 4-10 Packaging for Individual Orders


Sales of Baked Goods in the Philippines 37,063,700,000.00

Target Market 0.04%

Current Sales Projected Sales

2016 2017 2018 2019

15,447,120.00 16,991,832.00 22,089,381.60 33,134,072.40

The annual sales of Tooty Sweety are based on its own capacity based on the

three main products. In 2016, Tooty Sweety has 0.04% market share. For the next

three years, the target increase in sales of the company is 10%, 30% and 50% for

2017-2019 respectively.


2017

Product Quantity (pieces)


Cupcake 471 11325.6 135907.2 6,795,360.00

Cheesecake 146 3517.8 42213.6 2,954,952.00

Brownies 502.8833 12069.2 144830.4 7,241,520.00

Total Annual Sales 16,991,832.00


Market Percentage 0.04%

If the total sales for 2017 is 16,991,832.00, the above data should show how many quantity per product should be sold.

2018



Cupcake 613 14723.28 176679.36 8,833,968.00

Cheesecake 190 4573.14 54877.68 3,841,437.60

Brownies 653.7483 15689.96 188279.52 9,413,976.00






2019



Cupcake 920 22084.92 265019.04 13,250,952.00

Cheesecake 285 6859.71 82316.52 5,762,156.40

Brownies 980.6225 23534.94 282419.28 14,120,964.00






CHAPTER 5: Technical Aspects

5.1. Product

The business will serve pies, cakes, cheesecakes, bars and stacks, brownies,

cupcakes, pudding, custard, smoothies and frozen desserts. Some of the companys

best-selling products are Smores Tart, Berries and Cream, Death by Chocolate,

Heavenly Hazelnut, Berry Delight Strawberry Cheesecake.

5.2. Product Specifications and Principal Uses

A dessert is a typically a sweet course that concludes a meal. It is usually a sweet

course or dish, as of fruit, ice cream, or pastry, served at the end of a meal. The word

dessert originated from the French word desservir "to clean the table" and the negative

of the Latin word servire. Desserts usually include cakes, cookies, biscuits, gelatins,

pastries, ice creams, pies, puddings, and candies. Fruit is also commonly found in

dessert courses because of its natural sweetness. Even though desserts are known

for its sweet taste, there are several benefits one can get in eating desserts like having

better mood, greater nutrient intake and nourishing essential energy. Desserts can

positively influence a persons mood. In fact according to Aveen Bannon, a consultant

dietician and founder of The Dublin Nutrition Care, carbohydrate-rich foods cause your

brain to produce serotonin and tryptophan -- chemicals that promote emotional well-

being. Desserts also provide greater nutrient intake. Even though desserts are known

for its sweet taste, thus having negative effects in health, many establishment now

create pastry products using vegetables and fruits that provide antioxidants and


promotes strong immune function. There are also smoothies or parfaits made with

low-fat milk or yoghurt that provide protein and calcium. Also, according to traditional

Chinese medicine, sweet food can actually nourish Qi (essential energy), enrich

blood, relieve tiredness, resolve toxin, and regenerate body fluid.

5.3. Product Quality and Quantity

The company will make sure that the equipment used will be properly maintained

and that the raw materials needed to make our products will be fresh and properly

stored. In terms of price and its taste, the company will make sure that it is competitive

enough and that the products will satisfy what the consumers really want.


5.4. Manufacturing Process

5.4.1. Process Flow for Cupcake

Start

Prepare the necessary materials.

Whisk flour, baking soda and brown sugar in electric mixer.

Add eggs and vanilla extract.

A

A

Is it properly mixed?

Mix in flour mixture until properly mixed

Freeze for a few minutes

Yes

No

Add chocolate chips

Mix

Is it evenly mixed?

No

Put dough in baking pans then set aside.

Yes

B

Figure 5-1 Process Flow for Cupcake (1st Half)


Figure 5-2 Process Flow for Cupcake (2nd Half)

B

Mix eggs, cake mix and canola oil

Place mixture in cupcake liners

Add the dough

Preheat oven to 350 degrees F

Bake in preheated oven for 20 minutes

Set aside then cool

Bake for a few minutes

Serve Chocolate Chip Cookie Dough

Cupcake

Is it properly cooked?

No

Yes


5.4.2. Process Flow for Cheesecake

Figure 5-3 Process Flow for Cheesecake (1st Half)

Figure 5-4 Process Flow for Cheesecake (2nd Half)

Start

Combine cookie crumbs, melted butter, brown sugar

and cinnamon

Mix

Bake at 350 degrees F for 5 minutes

A

Set aside

Is it properly mixed?

Mix cream cheese, sugar, whipping cream, flour and

vanilla

Add egg Yes

Add mixture to the pan

Bake at 350 deg F for 45 minutes

Is it properly cooked?

Yes

B

A

Remove cake from oven

Bake for a few minutes

No

B

Combine sour cream, sugar and vanilla to cheesecake

Bake for 7 minutes

Leave in oven for 30 minutes

Combine whipping cream, chocolate chips in saucepan

Remove cake from oven

Stir until chocolate melts then add vanilla

Pour mixture over cheesecake

Refrigerate for at least 8 hours

Serve Chocolate Cookie Cheesecake


5.4.3. Process Flow for Brownies

Figure 5-5 Process Flow for Brownies (1st Half)

Figure 5-6 Process Flow for Brownies (2nd Half)

Start

Prepare necessary ingredients

Preheat oven to 350 degrees F

Melt butter in a saucepan

A

Remove from heat

A

Add sugar, eggs and vanilla

Put mixture in the pan

Mix

Is it evenly mixed?

No

Bake in preheated oven for 25 to 30 minutes

Yes

B

Add cocoa, flour, salt and baking powder

Set aside

Is it evenly mixed? Yes

Bake for a few more minutes

Combine softened butter, cocoa, honey, vanilla extract

Set aside until cool

Mix

Is it evenly mixed?

No

Put mixture

Yes

B

Add confectioners sugar

Serve Brownies


5.5. Processes used in existing plants

The processes used by existing business in making pastries and delivering

desserts vary. Some use the old method wherein there will be a long fermentation in

making the breads and pastries while others dont. At the same time, they manipulate

their formula depending on the availability of raw materials because of the different

seasons. Krispy Kremes production and delivery method when it comes to making

their products may be different from others. They normally start making their products

early in the morning and starts their delivery once the products are finished and they

do the said process every day.

5.6. Plant Size and Production Schedule

The location of the business will be on the EvoZone Lakeside Nuvali, Sta. Rosa,

Laguna. The plant size is 20m by 20m and since the building will have two floors- the

first floor will be for the restaurant while the second floor will be divided into two parts:

an extension of the restaurant and the office of the employess and owners the total

size of the plant is 800 m2.

Figure 5-7 Gantt chart for the whole Production of Tooty Sweety (8 hrs)


Figure 5-8 Gantt chart for the Production of Cupcake of Tooty Sweety

Figure 5-9 Gantt chart for the Production of Cheesecake of Toory Sweety


Figure 5-10 Gantt Chart for the Production of Brownies of Tooty Sweety

The figure shown in Figure V-7 shows the Gantt chart for the whole production of

Tooty Sweety for eight hours. On the other hand, Figures V-8, V-9 and V-10 shows

the production process of making cupcakes, cheesecakes and brownies respectively.


5.7. Annual and Daily capacity at a given number of shifts and the number of operating days per month

Table 5-1 Tooty Sweety's Annual and Daily capacity at a given number of shifts and the number of operating days per month

No of hours per day 8 No of minutes per hour 60 No of minutes per day 480 No of days per month 26 Breaktime 40 No of days per year 312

No of minutes per day 440 No of minutes per year 137280 No of minutes per month 11440 No of minutes per week 2640

Bakers Time(min) No of operators

No of minutes per day

Sweets produced per day

Sweets per

week

Sweets per month 2014 production

Cupcake 80 3 440 396 2,376

10,296

123,552

Cheesecake 100 2 440 123 738

3,198

38,376

Brownies 50 3 440 422 2,532

10,972

131,664 Total 293592

The table above shows Annual and Daily capacity at a given number of shifts and the number of operating days per

month of Tooty Sweety. The business will run 8 hours a day and 24 days per month.


5.8. Machinery

The equipment used in the production of the products will be coming from the

companys main supplier, F. USABAL Enterprises. The equipment includes: 8-tray

Oven, Dough Roller, Bread Slicer, Working Table, Fermentation Rack and Mixing Box.

Purchasing additional units of the equipment will be considered by the business based

on its performance.

5.9. Specifications and Functions

Dough Roller All heavy duty materials Cast iron rollers and parts Effective and economical Chain-driven for smoother operation Pedal brake Sizes of rollers

1.5 HP Capacity, electric motor, 4" dia. x 16" roller



Bread Slicer Bearing-type for silent operation 31 blades, all individually mounted under

balanced tension Table type with stainless guide and heavy duty

steel casing 1/4 HP electric motor 1/2" & 3/4" Thick Capacity

Image 5-1 Dough Roller

Image 5-2 Bread Slicer


The tables above show the equipments

specifications and functions from the main supplier F.

USABAL Enterprises.

5.10. Selection of Supplier

The equipment to be used in the production of the products will be coming from

the companys main supplier F. USABAL Enterprises which is located at #42/29 P.

Gomez St., San Isidro I, Concepcion, Marikina City. The said supplier make quality

and affordable bakery equipment including commercial and industrial ovens since

1975. The other materials to be used in the production will be coming from the

companys other supplier including MK Kitchen Equipments & Surplus Warehouse

located at Lot 1A-3 Pioneer St., Bgy. Highway Hills, Mandaluyong City, Philippines,

Bakeware Sta.Cruz, Laguna and Cupcake Equipment Factory at Karuhatan,

Valenzuela City.

5.11. Quotations from Supplier

The companys main supplier in equipment is F. USABAL ENTERPRISES. Their

complete baking packages costs Php 80,000 which includes 8-tray Oven, Dough

Roller, Bread Slicer, Working Table, Fermentation Rack and Mixing Box with 1 year

warranty on parts and services (except on electrical parts). Since the business is just

starting, the company will be purchasing two sets of the said package. Additional units

of equipment will be depending on the companys performance.

Cake Mixer Gear-driven Mixer 20 Quart & 12 Quart Capacity 3/4 HP Motor 220 Volts

Image 5-3 Cake Mixer


The table below shows the materials and the prices of each materials from the

companys supplier Bakeware found in Sta. Cruz, Laguna.

Products Prices

Silicon Bake ware

Cake pan sets

Square cake tins

Round tins

Cupcakes Trays

Show Case

Baking tins cupcakes

Wooden spoon

Large mixing bowl

Weighing scales

Paper cases

Knife

P 500.00/pc

P 500.00/set

P 300.00/pc.

P300.00/pc.

P 300.00/pc

P 75.000/pc

P 120.00/pc.

P 50.00/pc.

P 150.00/pc

P 500.00/pc

P 30.00/case

P 220.00/set

The table below shows the materials and its price from the compans supplier

Cupcake Equipment Factory located at Karuhatan, Valenzuela City.

Products Prices

Measuring Cups

Measuring Spoons

Liquid Measuring Cup

Electric Mixer

Hand Mixer

Spatula

Sheet Pans or Cupcake

Pans

Oven Thermometer

Cooling Rack

P 50 /pc.

P 50 /set

P 70 /pc.

P 1,500 /pc.

P 200/pc.

P 80/pc.

P 200/pc.

P 40,000/pc.

P 3,000/pc.

P 100/pc.

P 30/dozen.


Piping Bag and Large

Tips

Cupcake Papers/liners

Cloth or paper towels

Deck oven

Storm convection oven

Oven rack

Spiral mixer

P 50/pc

P 30,000

P 50,000

P 25,000

P 45,000

P 20,000

5.12. Delivery, Payments, and Other Arrangements with the Suppliers

The delivery, payments, and other arrangements with the suppliers will incude but

not limited to: E-mail order form, call or text, and cash and check payments. Tooty

Sweety will also coordinate on the suppliers regarding the process of acquiring the

goods/equipment. The delivery fees vary depending on the exact location which the

company will also consider with the supplier. At the same time, the companys main

supplier of equipment have 1-year warranty on parts and services except on electrical

parts. This should be recorded so that if there were problems in the machinery, the

supplier will be the one to arrange everything and take care of it. Lastly, the company

will have free baking seminar for buyers.

Category Object Supplier Qty Selling Price TOTAL COST Unit

Furniture

Long Sofa

JECAMS Enterprises

6 22,500.00 135,000.00 piece 2-Seat Sofa 28 17,250.00 483,000.00 piece Single Chair 20 3,800.00 76,000.00 piece Office Sofa 1 57,000.00 57,000.00 piece

1 53,000.00 53,000.00 piece Office desk 6 13,432.00 80,592.00 piece

1 35,800.00 35,800.00 piece Conference Table 1 10,864.00 10,864.00 piece

Office Chair 6 4,290.00 25,740.00 piece Cabinet 3 12,550.00 37,650.00 piece Counter 2 40,957.00 81,914.00 piece


Total 1,076,560.00 Category Object Supplier Qty Selling Price Total Cost Unit

Equipment, Appliances and Vehicle

Complete Baking Package:

F. Usabal Enterprises

3 80,000.00 240,000.00 package

8-tray Oven

Dough Roller

Bread Slicer

Working Table

Fermentation Rack

Mixing Box

Cake Pan

Bakeware

25 500.00 12,500.00 set

Silicon Bakeware 3 500.00 1,500.00 set

Cupcakes Trays 25 300.00 7,500.00 piece

Large mixing bowl 6 150.00 900.00 piece

Weighing Scale 4 500.00 2,000.00 piece

Knife 3 220.00 660.00 set

Measuring Cups 6 50.00 300.00 piece

Measuring Spoons 6 50.00 300.00 set

Liquid Measuring Cup 6 70.00 420.00 piece

Hand Mixer 4 200.00 800.00 piece

Spatula 6 80.00 480.00 piece

Sheet Pans or Cupcake Pans

25 200.00 5,000.00 piece

Oven Thermometer 2 40,000.00 80,000.00 piece

Cooling Rack 2 3,000.00 6,000.00 piece

Piping Bag and Large Tips

4 100.00 400.00 piece

Cupcake Papers/liners 80 30.00 2,400.00 dozen

Cloth or paper towels 4 50.00 200.00 piece


Rolling Pin

Gourdo's

6 380.00 2,280.00 piece

Fountainware Soda Glass

50 145.00 7,250.00

Libbey Valley Forge Lexington Beverage

9 300.00 2,700.00 6/set

Gourdo's Dessert Service Colonial

3 1,125.00 3,375.00 25

pieces

Bar Spoon Stiletto 9 360.00 3,240.00 6 pieces

AC unit Henrich Trading Center

6 40,000.00 240,000.00 piece

Refrigerator LG

Electronics 2 123,087.00 246,174.00

Utensils Lazada.com 6 340.00 2,040.00 12

pieces per set

Plates 15 455.00 6,825.00 4 pieces per set

Cake Stand Bakecraft 4 2,300.00 9,200.00 set

Cash Register Olympia 3 23,500.00 70,500.00 piece

Printer Canon 6 4,995.00 29,970.00

Computer Acer 6 23,990.00 143,940.00

Van Hyundai 2 838,000.00 1,676,000.00

Total 2,564,854.00

5.13. Plant Location

The company will be acquiring the premier plus commercial Lot at East II

Lakeside Evozone, Nuvali, Sta. Rosa, Laguna. It is situated right of Lakeside

Evozone East, with additional 47 commercial lots to the remaining inventory in the

Lakeside Evozone. Similar to the East and South Districts, East II will also be mixed-

use development, dedicating areas for open space, park systems, and road


networks.

Image 5-4 Location of Tooty Sweety


5.14. Plant Location Map

As mentioned above, the company will be acquiring the premier plus commercial

Lot at East II Lakeside Evozone, Nuvali, Sta. Rosa, Laguna.

5.15. Desirability of the Location

The company will acquire the premiere plus commercial lot at East II Lakeside

Evozone, Nuvali, Sta Rosa, Laguna which is a corner lot. Corner lots provide great

vantage points, excellent frontage and better access as it is bounded by a 25-meter

wide road on one side, and a 15-meter wide road on the other.

Image 5-5 Location Map of Tooty Sweety


5.16. Alternative Locations

If in case the desired location for Tooty Sweety is not possible, the management

plans to have the business built in Paseo de Sta. Rosa, Laguna and Solenad I or II

which is near the desired location.

5.17. Plant Layout

Image 5-6 Plant Layout of Tooty Sweety

5.18. Structures

Tooty Sweety will be a two-story building and is rent to own. The company will hire

an interior designer or architect for a new and better construction of the shop. The

buildings maximum floor area ratio (FAR) is 4 for the typical commercial lots. There

will also be setbacks and building footprints which includes: 4 meters minimum for the

building face fronting a street, 3 meters minimum for the building face fronting adjacent

parcels and maximum building footprint allowed is 75% of the total area. The

maximum height of the building shall be determined based on the floor area ratio and


other restrictions that may govern such as ATO, local government ordinances, etc.

The building shall have a contemporary and progressive look consistent with

NUVALIs vision. The use of innovative construction and finishing material that is, not

only, cost efficient and aesthetically pleasing but also environmentally responsible is

highly encouraged.

5.19. Raw Materials

The raw materials the company will be using in the production of its products are

shown in the table below:

Fruits

Dairy Products

Fresh Juices and Jams

Ice Cream

Breads

Bread Bases

Bread Concentrates

Bread Improvers & Conditioners

Bread Mixes

Bread Preservatives

Leavening Agents

Specialty Bread Bases

Cakes

Cake Mixes and Concentrates

Cake Preservative

Egg Substitute

Emulsifiers & Stabilizers

Leavening Agents

Chocolates

Fats and Oils

Emulsified Fats

Fats

Releasing Agents

Fillings and Toppings

Fruit Fillings

Specialty Fillings

Specialty Toppings

Finishing

Glazes

Icings and Toppings

Piping Jelly

Flavors and Colors

Miscellaneous


5.20. Consumption of Raw Materials

2016

Annual Orders 123552 Cupcakes

Flour 988416 grams 988.416 kgs

Baking Soda 5148 grams 5.148 kgs

Salt 7722 grams 7.722 kgs

Butter 581724 grams 581.724 kgs

Sugar 257400 grams 257.4 kgs


Egg 20592 grams 20.592 kgs

Vanilla Extract 1235520 pcs 1235520 pcs

Chocolate Chips 782496 grams 782.496 kgs

Yellow Cake Mix 2662571.34 grams 2662.571 kgs

Canola Oil 406692 mL 406.692 L

Annual Orders 38376 Cheesecakes

Cookie Crumbs 1228032 grams 1228.032 kgs

Butter 78122.57143 grams 78.12257 kgs

Sugar 150762.8571 grams 150.7629 kgs

Cinnamon 182925.6 grams 182.9256 kgs

Cream Cheese 2483.475429 grams 2.483475 kgs


Whipping Cream 216550.2857 mL 216.5503 L

Flour 43858.28571 grams 43.85829 kgs

Vanilla Extract 41117.14286 mL 41.11714 L

Eggs 10964.57143 pcs 10964.57 pcs

Sour Cream 1242943.817 grams 1242.944 kgs


Chocolate Chips 624980.5714 grams 624.9806 kgs

Annual Orders 131664 Brownies



Eggs 16458 pcs 16458 pcs

Vanilla Extract 82290 mL 82.29 L

Cocoa Powder 351104 grams 351.104 kgs


Salt 12343.5 grams 12.3435 kgs

Baking Powder 8229 grams 8.229 kgs

Honey 1974960 mL 1974.96 L


2017



Baking Soda 5662.792 grams 5.662792 kgs

Salt 8494.188 grams 8.494188 kgs

Butter 639895.5 grams 639.8955 kgs

Sugar 283139.6 grams 283.1396 kgs

Sugar 566279.2 grams 566.2792 kgs

Egg 22651.17 grams 22.65117 kgs



Yellow Cake Mix 2928824 grams 2928.824 kgs

Canola Oil 447360.5 mL 447.3605 L





Sugar 165840.7 grams 165.8407 kgs





Flour 48244.57 grams 48.24457 kgs


Eggs 12061.14 pcs 12061.14 pcs

Sour Cream 1367251 grams 1367.251 kgs





Eggs 18103.75 pcs 18103.75 pcs


Cocoa Powder 386213.3 grams 386.2133 kgs


Salt 13577.81 grams 13.57781 kgs

Baking Powder 9051.875 grams 9.051875 kgs

Honey 2172450 mL 2172.45 L



2018




Salt 11042.44 grams 11.04244 kgs


Sugar 368081.3 grams 368.0813 kgs

Sugar 736162.5 grams 736.1625 kgs

Egg 29446.5 grams 29.4465 kgs




Canola Oil 581568.4 mL 581.5684 L




Sugar 215592.1 grams 215.5921 kgs





Flour 62717.71 grams 62.71771 kgs


Eggs 15679.43 pcs 15679.43 pcs







Eggs 23535 pcs 23535 pcs

Vanilla Extract 117675 mL 117.675 L

Cocoa Powder 502080 grams 502.08 kgs


Salt 17651.25 grams 17.65125 kgs


Honey 2824200 mL 2824.2 L


2019




Salt 16563.69 grams 16.56369 kgs


Sugar 552122.9 grams 552.1229 kgs


Egg 44169.83 grams 44.16983 kgs




Canola Oil 872354.2 mL 872.3542 L





Sugar 323388.2 grams 323.3882 kgs





Flour 94076.57 grams 94.07657 kgs


Eggs 23519.14 pcs 23519.14 pcs






Eggs 35302.38 pcs 35302.38 pcs


Cocoa Powder 753117.3 grams 753.1173 kgs


Salt 26476.78 grams 26.47678 kgs


Honey 4236285 mL 4236.285 L



5.21. Specifications

Overall, the business will serve pies, cakes, cheesecakes, bars and stacks,

brownies, cupcakes, pudding, custard, smoothies and frozen desserts. As part of

the marketing strategy of the business, every month a new product will be created

and the company will have a different theme every week depending on what is in

in the market.

Cakes Cakes are usually a sweet tender bread made with sugar and

delicate flour. The company will serve different types of cake. Since the

theme of the business is different every week, it is expected to have different

types of cakes depending on the theme of the said week.

Pies Pies are crust with different fillings. The crust are either made of

pastry or crumbs. The company will have different sets of pies depending

on the availability of raw materials and the themes of that particular week.

Cupcakes Cupcakes are small size cakes.

Custards and Puddings These types of desserts usually includes a

thickened base.

Frozen Desserts Frozen desserts usually include ice cream and gelatos.

Tooty Sweety will be producing different flavors of ice cream and gelatos

that its consumers will surely want.

Cheesecakes A sweet dish conatining one or more layers. It is composed

of cheese and other sweeteners and can be topped with different fruits.

Smoothies Blended sweetened beverages made out of fruits. Tooty

Sweety will be have different types of smoothies made out of fresh fruits.


Brownies Usually, flat and baked square. It is close to being a cake and

cookie and cookie. Tooty Sweety will be producing chocolate chip cookie

brownies.

Table 5-2 Product Specification for Cupcake

Cupcake

Flour (8g)

Baking Soda (0.04 g)

Salt (0.06 g)

Butter (4.7g)

White Sugar (2g)

Brown Sugar (4g)

Egg

Vanilla Extract (10mL)

Semisweet Chocolate Chips (6.3 g)

Yellow Cake Mix (21.5g)

Canola Oil (3.3L)

Table 5-3 Product Specification for Cheesecake

Cheesecake

Cookie Crumbs (32g)

Butter (2g)

Sugar (4g)

Cinnamon (4.8g)

Cream Cheese (0.06g)

Sugar (21.5g)

Whipping Cream (5.6g)

Flour (1 g)

Vanilla Extract (1 mL)

Eggs

Sour Cream (32 g)

Chocolate Chips (16g)


Table 5-4 Product Specification for Brownies

Brownies

Butter (7g)

Sugar (13g)

Eggs

Vanilla Extract (0.6 mL)

Cocoa Powder (2.7g)

Flour (4g)

Salt (0.09g)

Baking Powder (0.06g)

Honey (15mL)

Confectioners Sugar (8g)

The tables above show the specification needed in the production of one

cupcake, cheesecake and brownies.

5.22. Proof of Reliability of Raw Materials

Holy Carabao Holistic Farms practice organic and biodynamic farming so that

all the vegetables they produce are healthy, nutritious and abundant with live

enzymes.

Organic Farming

o Ensures that both the produce and the soil that nourishes it are free

from toxins.

Biodynamic Farming

o Works together with the life forces, rythms and natural cycles of the

earth.

o Experience the power to heal and encourage life.


o It is the this healing power that they aim to harness in everything they

harvest.

Holy Carabao Holistic Farms believe that all of life is interconnected. They

treasure everything from seedlings to the wiggly worms that cultivated the soil.

5.23. Alternative Raw Materials

Tooty Sweety will get its raw materials from different suppliers so if one supplier

cannot provide our orders, then we can get it from other suppliers.

5.24. Availability of Supply

The information below are what the company needs in order to communicate with

the suppliers from time to time.

Holy Carabao Farms will be open from 9am-4pm

EMAIL|[email protected]

CALL or TEXT | 0929 752 1076 or 0920 46 88 785 & 0916 475 3211 for the delivery

of products

Bakels Philippines

Phone: (+63 2) 915 0372 to 74

Fax: (+63 2) 915 0375

5.25. Supplier

The main supplier for raw materials of the busincess will be coming from the Holy

Carabao Farms Holy Carabao Holistic Farm at Sta. Elena Properties Inc. Barrio

Malitlit, Sta. Rosa, Laguna. Another supplier of raw materials is the Bakels Philippines


mailto:[email protected]

locatedat Suites 601 & 602 Raffles Corporate Center Don Francisco Ortigas, Jr. Road

Ortigas Center, 1605 Pasig City Philippines

The table below shows the raw materials, quantity and the price of each materials

from the companys main supplier.

Seasonal Fruits Quantity Price

Banana (latundan) Approx. 1kg 1.2kg Php 120/bunch

Banana (saba) Approx. 1kg 1.2kg

Php 100/bunch

Banana (tagalog) Approx. 1kg 1.2kg Php 100/bunch

Corn Php 90/medium pack

Indian Mango Php 50/medium pack Jackfruit/Langka Approx. 1kg Php 50/cut

Kamias Php 15/petite pack Kalamansi Php 15/petite pack

Lemon (green) Php 40/small pack Passion Fruit Php 150/medium pack Papaya Ripe Approx. 1kg 1.2kg Php 120/head

Buko Php 50/head Strawberries Php 147/small pack


5.26. Material Cost Table

Table 5-5 Material Cost Table for Cupcake

Material Standard Quantity Unit Purchase Price Unit Price

Flour All-Purpose 8 g 50.00 1 kg 0.4000000 Baking Soda 0.041666667 g 21.50 500 g 0.0017917

Salt Sea 0.0625 g 20.00 1 kg 0.0012500 Butter Softened 4.708333333 g 78.50 225 g 1.6426852 Sugar White 2.083333333 g 60.00 1 kg 0.1250000 Sugar Brown 4 g 60.00 1 kg 0.2500000 Egg 0.166666667 pc 13.00 1 pc 2.1666667

Vanilla Extract 10 mL 220.00 450 mL 4.8888889 Chocolate Chips Semisweet 6.333333333 g 152.75 340.08 g 2.8446738 Yellow Cake Mix 21.55020833 g 68.50 500 g 2.9523785

Canola Oil 3.291666667 mL 70.15 380 mL 0.6076590 Total 15.8809937 Cost of Cupcake 50.00 Material Ratio 31.76%

The figure above shows the material cost for the production of each cupcake. The total cost of each cupcake

is Php 15.88, however, the company will be selling each quantity for Php 50.00, a price that is still competitive to its

competitors.


Table 5-6 Material Cost Table for Cheesecake

Material Standard Quantity Unit Purchase

Price Unit Price

Cookie Crumbs 32 g 60.00 200 g 9.6000000

Butter Melted 2.035714286 g 78.50 225 g 0.7102381

Sugar Brown 3.928571429 g 60.00 1 kg 0.2357143

Cinnamon Ground 4.766666667 g 548.00 1 kg 2.6121333

Cream Cheese Softened 0.064714286 g 137.00 226 g 0.0392295

Sugar White 21.50000000 g 60.00 1 kg 1.2900000

Whipping Cream Heavy 5.64285714 mL 110.00 250 mL 2.4828571

Flour All-Purpose 1.142857143 g 50.00 1 kg 0.0571429

Vanilla Extract 1.071428571 mL 220.00 450 mL 0.5238095

Eggs 0.285714286 pcs 13.00 1 pc 3.7142857

Sour Cream 32.38857143 g 100.00 350 g 9.2538776

Chocolate Chips Semisweet 16.28571429 g 152.75 340.08 g 7.314875491

Total 37.8341635 Cost of Cheesecake 70.00 Material Ratio 54.05%

The production cost for each cheesecake is Php 37.83. However, the company will be selling each price for

Php 70.00


Table 5-7 Material Cost Table for Brownies

Material Standard Quantity Unit Purchase

Price Unit Price

Butter 7.0625 g 78.50 225 g 2.4640278

Sugar White 12.5625 g 60.00 1 kg 0.7537500

Eggs 0.125 pcs 13.00 1 pc 1.6250000

Vanilla Extract 0.625 mL 220.00 450 mL 0.3055556

Cocoa Powder Unsweetened 2.666667 g 170.00 1 kg 0.4533333

Flour All-Purpose 4 g 50.00 1 kg 0.2000000

Salt 0.09375 g 20.00 1 kg 0.0018750

Baking Powder 0.0625 g 60.00 1 kg 0.0037500

Honey Semisweet 15 mL 350.00 550 mL 9.5454545

Sugar Confectioners' 8 g 60.00 1 kg 0.4800000

Total 15.8327462 Cost of Brownies 50.00 Material Ratio 31.67%

The table above shows the material cost for production of brownies. Each brownies costs approximately Php

15.83. Tooty Sweety will be selling each brownies for Php 50.00.


5.27. Quotations

Table 5-8 Cost of Raw Materials for Cupcake

Material Purchase Price (Php) Unit Flour 50.00 1 kg

Baking Soda 21.50 500 g Salt 20.00 1 kg

Butter 78.50 225 g White Sugar 60.00 1 kg Brown Sugar 60.00 1 kg

Egg 13.00 1 pc Vanilla Extract 220.00 450 mL

Chocolate Chips 152.75 340.08 g Yellow Cake Mix 68.50 500 g

Canola Oil 70.15 380 mL

Table 5-9 Cost of Raw Materials for Cheesecake

Material Purchase Price (Php) Unit Cookie Crumbs 60.00 200 g

Butter 78.50 225 g Brown Sugar 60.00 1 kg

Cinnamon 548.00 1 kg Cream Cheese 137.00 226 g White Sugar 60.00 1 kg

Flour 50.00 1 kg Vanilla Extract 220.00 450 mL

Eggs 13.00 1 pc Sour Cream 100.00 350 g

Chocolate Chips 152.75 340.08 g

Tooty Sweety Corporation

Page 66

Table 5-10 Cost of Raw Materials for Brownies

Material Purchase Price (Php) Unit Butter 78.50 225 g

White Sugar 60.00 1 kg Eggs 13.00 1 pc

Vanilla Extract 170.00 mL 1 kg Cocoa Powder 170.00 1 kg

Flour 50.00 1 kg Salt 20.00 1 kg

Baking Powder 60.00 1 kg Semisweet

Honey 350.00 550 mL

Confectioners Sugar

60 1 kg

5.28. Utilities

The Utilities the business will need are electricity and water which is dependent on the

provider of Nuvali since the business will be built in the said area. The business will also

be needing cable for television as a sign of entertainment for the customers in the

restaurant and PLDT for telephone and internet services so that the business will be able

to address the orders through online and through calls.

5.29. Waste Disposal

The business will be considering the process wastes, packaging wastes and other

wastes incurred in the production of the products. The process wastes include dough flour

dust, sugar dust, burnt biscuits, broken biscuits, burnt loaves or rejected loaves and market

returned old bakery products. The company will sell these to suppliers who deal into cattle

feeding. Precaution should be taken that none of these have contamination so that it can

be used for cattle feeding. Packgaing wastes iinclude wrappers, tins, cardboard boxes,

bags, cores, polythene, sacks and plastic trays and pallets. Most of these can be recycled

by packaging material suppliers. Metallic scrap, wooden pallets, papers and bakery waste

water dry sludge are also wastes to be considered. Metallic scrap can be sold to scrap


merchants, dry sludge and other can be sold to land filling contractors. Bakery waste water

can be treated and can be used for gardening and other cleaning purposes. Other wastes

include fat and oil contaminated and spent oil from machinery. These wastes could be sold

to recyclers. These may be considered as wastes but the business can styill get profit

through selling them to the right people. At the same time, bakery waste recycling is being

adopted by various companies to save cost and implements resource conservation.


CHAPTER 6: Financing Aspects

6.1. Sources of Financing for the Project

The business will be funded through the contributions of the owners and through

loaning from Metrobank. The owners will give a capital of 500 000 each. And then

the business will obtain a loan of 2 000 000. So Tooty Sweety will now have a start-

up capital of 3 500 000.


CHAPTER 7: Financial Statement

7.1. Statement of Financial Position First Year and Three Years Forecast

Assets 2016 2017 2018 2019 2016 2017 2018 2019

Current Assets:Cash 2,746,210.12 4,485,598.14 9,179,194.98 18,950,650.02 32.02% 50.57% 65.68% 76.68%Accounts Receivable 3,089,424.00 1,699,183.20 2,208,938.16 3,313,407.24 36.02% 19.16% 15.81% 13.41%Merchandise Inventory 680,192.91 673,390.98 666,657.07 659,990.50 7.93% 7.59% 4.77% 2.67%

Total Current Assets: 6,515,827.03 6,858,172.32 12,054,790.21 22,924,047.76 75.96% 77.32% 86.25% 92.75%

Non-Current Assets:Furnitures and Fixtures 110,000.00 210,000.00 310,000.00 410,000.00 1.28% 2.37% 2.22% 1.66%

Acc'd Depreciation (13,750.00) (47,500.00) (101,250.00) (175,000.00) 0.16% 0.54% 0.72% 0.71%Property, Plant and Equipment 2,162,174.00 2,262,174.00 2,362,174.00 2,462,174.00 25.21% 25.50% 16.90% 9.96%

Acc'd Depreciation (196,612.43) (413,224.86) (649,837.29) (906,449.71) 2.29% 4.66% 4.65% 3.67%Total Non-Current Assets: 2,061,811.57 2,011,449.14 1,921,086.71 1,790,724.29 24.04% 22.68% 13.75% 7.25%

Total Assets: 8,577,638.60 8,869,621.47 13,975,876.93 24,714,772.05 100.00% 100.00% 100.00% 100.00%103% 158% 177%

LiabilitiesCurrent Liabilities:

Accounts Payable 1,821,417.00 587,917.39 742,203.22 1,080,170.76 21.23% 6.63% 5.31% 4.37%Total Current Liabilities: 1,821,417.00 587,917.39 742,203.22 1,080,170.76

profea2 tooty sweety revised

Documents

management aspects

marketing aspects

technical aspects

machinery supplier selection

project timetable

project summary

table of contents chapter

receipt of machinery