I.

Executive Summary

The Coffee Time will be a one of a kind coffee house / café located at Tamag, Vigan City.
The 1,500 square foot café will be located in the newly constructed Commercial Complex, in
front of University of Northern Philippines.

The Coffee Time is a name that is easy to remember and simple to spell—perfect if your
customers are going to search for your shop online and for the aromatic brown liquid that will
fill the cup, fills the void of original cafes in the market area, stands out from its corporate
peers with their fast food concepts and fast services. The Coffee time is the alternative to fast
food/commercial/coffee shops and offers a much calmer, civilized gourmet coffee experience.
There are no televisions in the café, the background music is subtle and work from local
artists will hang on the walls. The café is well appointed with overstuffed leather chairs and
sofas in a library like setting. The café is reminiscent of times gone by.

The interior design of the building will focus on projecting a relaxed ambiance. Coffee
Time will be divided into different areas. Some will have tables and chairs, another will have
large antique stuffed couches and chairs, end tables, coffee tables, book shelves filled with
books and magazines, tiffany style lamps and braided rugs. A large selection of table games
will be provided. The café is well appointed with overstuffed. A technologically with WIFI
and state of the art of coffee time.

The Coffee Time measures its financial success in terms of increased market share and in
earnings. With a total local market of 2.500 million, this is a tremendous opportunity! The
keys to success will be the ability to offer quality coffees, take advantage of its small size,
and reliance on an outstanding barista staff. In order to achieve these goals, the café will offer
some the area’s finest gourmet beans from local distributors. Because of its small size, the
café can enjoy larger margins in the form of lower overhead. The cafe will hand select
baristas and offer salaries comparable to the chains. In turn the baristas will be trained to
cross-sell, and sell the higher margin products.
MISSION OF THE CAFÉ
Coffee time make its best effort to create a unique place where customers can
socialize with each other in a comfortable and relaxing environment while enjoying the best
coffee, milktea and frappe in town.
To serve everyone better than anyone else.

VISION OF THE CAFÉ

We’re all about getting people together and enjoying each other’s company. We
believe that we can do ca n weave a fabric of positive relationships and experience that
stretch from our coffee house and into the world.

VALUES OF THE CAFÉ

The best way to earn our guest’s trust and loyalty is by showing what we believe in
every day. That means we have to know what we stand for and act in a way that support it.

BE REAL
Bring your authentic and unique self to every situation and every opportunity to serve
one another and our guest better than anyone else.

BE EXCEPTIONAL
Bring “better than” and be “wiser than” Challenge yourself and those around you to
exceed expectations.

BE PASSIONATE
Personalize your service to one another than our guests. You’re your enthusiasm for
loving one another and our guests in contagious

II. MARKETING SITUATION

Coffee Time will focus its marketing activities on reaching the University students and
faculty, people working in offices located close to the coffee bar and on sophisticated
teenagers. Our market research shows that these are the customer groups that are most likely
to buy gourmet coffee products. Since gourmet coffee consumption is universal across
different income categories and mostly depends on the level of higher education, proximity to
the University of Northern Philippines campus will provide access to the targeted customer
audience.

The chart and table below outline the total market potential (in number of customers) of
gourmet coffee drinkers in Vigan City.

Target Market Segment Strategy

Coffee Time will cater to people who want to get their daily cup of great-tasting coffee in
a relaxing atmosphere. Such customers vary in age, although our location close to the
University campus means that most of our client will be college students and faculty. Our
market research shows that these are discerning customers that gravitate towards better
tasting coffee. Furthermore, a lot of college students

III. ENVIRONMENT ANALYSIS

The time is right for opening a coffee house. Coffee houses are having a great deal of success,
which is evidenced by the full houses every day of the week. The closest competition is the
Infinitea located at Tamag, Vigan City In order to reach a coffee house, a customer from our
area must drive 10 to 15 minutes. The majority of these establishments are located on the
south side.

The area comprising a 200 meters around Coffee Time is heavily populated with young,
upwardly, mobile persons with expendable income. This is complimented by a large number
of upper middle class "Baby Boomers" who are a large portion of those persons who frequent
coffee houses.

The SWOT analysis examines the café’s strengths and weaknesses that need to be addressed.
Further, this section examines the opportunities presented to Café as well as potential threats.
Strength

 Unique concept.
 Close to university.
 Interest and knowledge in retro games.
 Based on its smaller size, the fact that it is not a franchise, the Coffee Time is a unique
coffee shop concept unlike any other in the Vigan city market.

 The owner has firsthand experience, in operating and starting new restaurants,

 Handpicked baristas will bring professionalism and enthusiasm to the shop.

 Lower operating cost and more control over the business.

Weaknesses

 No experience opening/ running a business.

 Franchises are the easiest way and often the safest conduit to start a café; the café will
not have the backing of one of these established entities.

 The Coffee Time has a minimal budget and is competing against larger and more
established coffeehouses for market share.

Opportunities

 Ability to attract customers from the University.

 Ability to hire people from the University.
 The ability to appeal a different target market than other café such infinitea.
 The ability to expand branches on other areas.
 The nation’s coffee drinkers are consuming premium ground and whole bean coffee.

 Encouraging coffee drinkers to become coffee connoisseurs is the key to continued

growth.
 Threats

 Other café in the area, such as infinitea, zeantea and etc. the coffee club house other.
 Changing market tastes.
 The Milktea is currently demand for sale; should another independent purchase this
café, it could pose significant threat to market shares.

IV. Objectives

The primary objectives of the business plan for Coffee Time are below:

PRODUCT
We aim to serves the best quality and most interesting varieties of coffee, milktea and
frappe drinks at all times.

SERVICE
We strive to treat our costumers respectfully as our guests. We intend to offer our
guest service that is prompt.

ATMOSPHERE
We will provide a pleasant, welcoming environment and will maintain a clean and
attractive coffee house at all times.

WORK ENVIRONMENT
We want to be a great place work. We aim to create a positive, respectful work place
and empower our staff to be themselves and to achieve their fullest potential.

 To increase revenues 1,000,000 or 5% in Year 2 and by 1 500,000 or 10% by Year 3

 Achieve a profit margin of 5.2% in Year 2 and 6.90% by Year 3

 To be a recipient of the Best Coffeehouse Award

 Mission Statement

The Coffee Time is committed to its products and employees which they believe is the
recipe for market success

Guiding Principles

The Coffee Time is committed to values such as excellence, passion, quality, integrity
and leadership which allow them to navigate challenges and provide for future opportunities.
These core beliefs start with their commitment to their products and their employees

The coffee time rewards excellence and cherishes loyalty. The café will work with its
employees to build strong businesses and a secure future.

Keys to Success

The coffee time stands out from the competition.

Below are their Keys to Success:

Great Products – providing exemplary products at market prices – will make customers
want to return again and again

Hire Quality Baristas – Pay employees rates similar to the larger chains with opportunities
for long term careers and opportunities for advancement with long term plans to open a
second facility

Convert Customers to Connoisseurs - Only 40% of the nation’s coffee drinkers consume
premium ground and whole bean coffee – this will aid in continued growth.

V. Marketing Strategies

 Online Advertising - The Coffee time will advertise regularly on popular social media sites,
such as Facebook, Instagram and Twitter. Compared to traditional print advertising, this is a
cost effective tactic that will allow them to reach prospects in a highly targeted way.
  Web Site - the Coffee Time will develop a simple Web site, which will provide basic
information about the business, the menu, and links to their presence on the
aforementioned social media channels. The Coffee time will have a simple website
identifying its menu items of gourmet coffees, smoothies and pastries, along with the
address, map and hours of operation. The website will also have a calendar of any
upcoming events or sponsorships. The site will also have links to their social media
sites – such as Facebook, Twitter, and Pinterest.

 Radio Advertising - During the first six months of operation, and during the busy
holiday shopping season, the business will advertise on local radio stations.

VI. Action Program/Action Plan

The café will also rely on signage and draw to its location. Price chopper brings 10,000
shippers weekly to its location.

V. Budget (time period)

PERSONNEL PLAN

2019 2020 2021

Manager 35,000 37,800 40,824

Baristas 50,000 54,000 58,320

Employees 39,600 52,000 56,000

TOTAL PEOPLE 7 8 8

Coffee Time will capitalize on the strong demand for high-quality gourmet coffee. The
owners have provided the company with sufficient start-up capital. With successful
management aimed at establishing and growing a loyal customer base, the company will see
its net worth doubling in two years. Java Culture will maintain a healthy 65% gross margin,
which combined with reasonable operating expenses, will provide enough cash to finance
further growth
 GENERAL ASSUMPTIONS

2019 2020 2021

Plan Month 1 2 3

Current Interest Rate 10.00% 10.00% 10.00%

Long-term Interest Rate 10.00% 10.00% 10.00%

Tax Rate 25.42% 25.00% 25.42%

Other 0 0 0

VI. Budget (expense)

TOTAL COST OF SALES

$14,000 $15,750 $16,800 $16,800 $16,800 $16,800

$16,800 $16,800 $17,150 $18,200 $19,250 $19,250

Gross Margin

$26,000 $29,250 $31,200 $31,200 $31,200 $31,200

$31,200 $31,200 $31,850 $33,800 $35,750 $35,750

Gross Margin %

65.00% 65.00% 65.00% 65.00%

65.00% 65.00% 65.00% 65.00%
65.00% 65.00% 65.00% 65.00%

Expenses

Payroll

$10,383 $10,383 $10,383 $10,383 $10,383 $10,383

$10,383 $10,383 $10,383 $10,383 $10,383 $10,383

Sales and Marketing and Other Expenses

$2,150 $2,150 2,150 $2,150 $2,150 $2,150

$2,150 $2,150 $2,150 $2,150 $2,150 $2,150

Depreciation

$450 $450 $450 $450 $450 $450

$450 $450 $450 $450 $450 $450
 Maintenance

$400 $450 $480 $480 $480 $480 $480 $480 $490 $520 $550
$550

Payroll Taxes

15% $1,558 $1,558 $1,558 $1,558 $1,558 $1,558

$1,558 $1,558 $1,558 $1,558 $1,558 $1,558

Total Operating Expenses

$16,191 $20,641 $20,671 $20,671 $20,671 $20,671

$20,671 $20,671 $20,681 $20,711 $20,741 $20,741

Interest Expense

$248 $245 $243 $241 $239 $236

$234 $232 $229 $227 $225 $223

VII. Control

To maximize the return on a marketing plan, there need to be controls in place to monitor the
plan's progress. As a marketing plan moves along, the controls are constantly analyzed to
determine how the plan's actual performance compares to the projections. Any changes that
need to be made are done based on the analysis of marketing controls. Understanding what
the controls in a marketing plan are will help you develop effective performance
measurement indicators.

Monitor Customer Feedback

Marketing is designed to persuade consumers to purchase a product or invest in a service.

One control put into place in any marketing plan is the monitoring of customer feedback
through polls and surveys. You can reach customers indirectly by hosting online polls on the
Internet that ask specific questions about your latest marketing plan. Conversely, surveys can
be done with marketing groups or via individual interviews by phone or in person.

Adjust your marketing plan according to the results of your research. For example, if your
marketing campaign includes a new company mascot and customer feedback indicates that
the mascot is not popular, then the mascot should be removed from the marketing plan.
Target Market Sales

Sales can be measured in units sold, revenue generated or profit amount. Each marketing plan
sets out to determine the effect of the plan on the target market. Once again, this is done
through market surveys or at the point of sale with the assistance of retail partners. Actual
sales in the target market are compared to the marketing plan projections to see if any
changes need to be made.

For example, if the target market for a marketing plan is males ages 15 to 21, then the target
market sales reports would monitor sales made to that group. If sales are down, then further
market research needs to be done to see why the target audience is not responding to the
marketing. In some cases, analyzing a demographic breakdown of sales may indicate that the
initial target market was inaccurate and a new target market may emerge based on sales data.

Budgeting and Monitoring Spending

A marketing budget is a balance between the cost of generating the advertising materials and
the revenue created by the marketing plan. There are several controls in place that can be
used to monitor a marketing budget, including print advertising expenses, travel expenses for
trade shows, the cost of market research studies and internal personnel costs for the
company's marketing department. All of these costs need to be closely monitored to minimize
spending and maximize profitability. By examining expenses, you are able maintain your
budget and see exactly where spending increases come from.

Market Share Milestones

Market share is that percentage of consumer sales dominated by your product. For example,
you may have a product with sales making up 15 percent of all products in the marketplace. A
marketing plan outlines the product's market share before the plan is in place, and then
projects the changes to the marketplace when the plan ends.

For example, your marketing plan may call for an increase in market share from 10 percent to
15 percent of all products sold. During the plan's timeline, a milestone may be seeing a three
percent increase halfway into the plan. If you do not meet this goal, you need to analyze why
the plan is falling short and how to correct it.
 Republic of the Philippines

UNIVERSITY OF NORTHERN PHILIPPINES

Vigan, City

COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY

Marketing Plan

In partial fulfilment of the requirements in

The subject (Elective 2A) – Marketing Management

Presented To:

Mr. Romeo R. Arce

Instructor

Presented By:

Jason Donato

Neil Christian Sumo-oc

Jerick Flores
Nikko Angelo Sabalburo
Francis Batin
Jeremiah Nebres