Ateneo de Naga University

Ateneo Ave, Naga, 4400 Camarines Sur

A/Y 2019-2020

Chicken
Diner
Business Plan

Submitted by

Baldemoro, Kier T.
Canlas, Richard Edgard Jerome C.
Castañares, Sigmund Orville S.
De Leon, Leira Love B.
Eugenio, Jiro Jesus L.
Manacob, Ma. Ezrah Mikaela T.
Perillo, Vince Lenard A.

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 Rebancos, Andrea Faye D.
Sarmiento, Rhoda Lynn M.
AC25

Chapter I

Background and History

This chapter presents the general overview of Chicken Diner. It includes the history and

general description of the business. Also, it contains the mission, vision, goals, objectives and

values of the company.

I. History

In 2019, there was a group of friends from the Marketing Management and

Entrepreneurship who are often fond of playing mobile games during their free time. In the midst

of their gaming session, the group felt hungry and decided to dine in a restaurant and ordered their

usual picks on the menu. While waiting for the orders, they did their usual bonding. They played

“PUBG”, also known as Player Unknown Battle Grounds. The goal of the game is to be the last

man/duo/trio or group standing among over a hundred players worldwide. After a minute of

waiting, the food was finally served. The food looked tasty, but the taste of the chicken is led them

to be unsatisfied as well as the price of the food do not fit with its taste. The group of friends

suddenly evaluated the taste of the chicken. One of them suggested, "What if we produce a better

fried chicken with different flavors and sauces on it, do you think the customers will be satisfied?"

Then, all of them agreed. They created a business that literally gratified their cravings and assured

to come up with clean and fresh products. They also guaranteed to innovate fried potatoes and

lemonades so that it would be refreshing for the customers.

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 They named their stall “Chicken Diner” which is derived from the term “chicken dinner”

which means victory in their favorite mobile application game, “PUBG” and Customer’s Unknown

Eating Ground (CUEG) Corporation as their business name. The business started with a mini-stall

located at Naga City. At first, it was not easy to operate the business because of some factors such

as lack of employees, customers, resources, and competition from other businesses, but they had

been able to manage and fix it. They had reached the target income at the first month. On their

second month of selling, the target income increased as well as on the following months. They had

an innovative mind to discover new flavors. There were lots of trial and error along the way in

order to come up with their successful products and business. As months passed by, the business

became stable and the income gradually increased.

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 II. General Company Description

Customer’s Unknown Eating Ground (CUEG) Corporation is a service type of company

that aims to serve quality fried chicken, crunchy fried potatoes, and refreshing lemonade to satisfy

the customers’ needs. The business is a form of partnership company managed by General

Manager Mikaela Manacob, Marketing Manager Andrea Rebancos with her assistant Leira De

Leon, Production Manager Kier Baldemoro with his assistants Jiro Eugenio and Richard Canlas,

Financial Manager Vince Perillo with his assistants Rhoda Sarmiento and Sigmund Castañares.

Chicken Diner is located inside of Ateneo de Naga University main campus. The business has

been operating for eight months.

The interior of the business is a PUBG-inspired stall and adapted some terms from the

mobile application that make up their menu names. The purpose of this was to create their own

identity and to leave superb impressions to the customers. The business offers three recipes in the

menu. Fried chicken and potatoes with variety of flavors and lemonade made from fresh lemon

pulp.

The Chicken meals, other potato-chip and other fresh juice related menu from the different

offering businesses within the ADNU campus are considered to be the company’s potential

competitors. Customer’s Unknown Eating Ground (CUEG) Corporation strived to be at par with

its competition by giving large impact to the market share. Moreover, the company aimed to serve

variety of tastes with affordable cost at the same time. The company's plan was to have a consistent

amount of good income and customers.

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 III. Mission Statement

“Customer’s Unknown Eating Ground Corporation aims to provide a Player Unknown

Battle Grounds-inspired experience that will energize everyone with an enthusiastic welcome,

remarkable service, and an aftertaste that will ensure everyone an unforgettable time.”

The company seeks to offer their customers a PUBG-inspired vibe to support its identity

and have an impression to its potential market. Since the game is timely, the company expected

that it will be a hit applying some details from the game to the stall that guaranteed the customers

satisfaction. Also, the company’s mission is focused on the employees’ efficient and effective

services. The employees are expected to be welcoming their customers in a hospitable manner

with smiles on their faces and to be passionate in serving their clients.

IV. Vision Statement

“Customer’s Unknown Eating Ground Corporation envisions to be the most trusted fried-

chicken serving-stall that offers outstanding quality food, service and value. Also, CUEG

Corporation visualizes to be a well-known company that can be able to create smile and give

victory to all people after trying their foods and services.”

The company intends to gain the trust of the customers by giving them satisfaction through

the company’s innovation of menu. They also imagined that their customers left them high quality

impressions about the unique taste and varieties of the company’s product. Furthermore, the

company wanted their customers to remember them through their PUBG-inspired stall and for

their customers to achieve satisfaction and victory after tasting their food.

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V. Goals

 To produce 30 orders for Chicken Bonk and Chicken Bonk with rice, 40 orders for

Mojoster, and 50 orders for Lemnoster per day.

 To increase 6% in sales every month.

 To reduce overall budget costs by 10% every week.

 To increase customer satisfaction by 5 points every week measured via customers’

satisfaction survey.

VI. Objectives

 To offer affordable but high quality products to the target market.

 To maintain the crispiness, crunchiness, and freshness of the products evaluated via

customers’ satisfaction survey.

 To cater at least 40 senior high school students in ADNU per day.

 To apply mission and vision every day to be evaluated via customers’ satisfaction

survey.

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VII. Values

 Respect- The value of respect will be highly observed. The company will respect everyone

as they respect themselves.

 Excellence- The company will perform their promised task in good quality that will exceed

the customers’ expectations.

 Teamwork- The company willingly works as a team to achieve common aims. The team

exists when individual strengths and skills are combined with teamwork, in the pursuit of

a common direction or cause, in order to produce meaningful results for the team members

and the organization.

 Integrity- Rest assured that the company’s honesty and fairness towards customers will be

applied.

 Accountability- The business owners account willingness to accept responsibility to all

account for their actions and work. Take possession to the work and promptly correct

mistakes to the best extent doable.

 Law-Abiding- The business ensures to be adhering to all its constitutions and bylaws.

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 Chapter II

Products and Services

The products of CUEG Corporation that are aimed to be sold in the market will be

presented in this chapter. Also, the introduction of the products, brand marks, packaging and

labeling will be exhibited.

BRAND

Trade Name

As stated in the previous chapter, Chicken Diner is the trade name of the company while

Customers Unknown Eating Ground (CUEG) Corporation is the business’ legal name. The

business' trade name is shown in the company logo. The business' trade name is derived from the

term Chicken Dinner which means "victory" in the mobile application game PUBG also known as

Player Unknown's Battle Ground. PUBG can be played in solo, duo, or a team. The last person or

team standing wins the match.

The company logo represents a chicken inside the black pan-shaped silhouette background

with the crown on the top. It has a combination of Mustard and Black colors to follow the theme

color of the mobile application game PUBG. The colors also symbolize the joy of the customers

and the passion of the company. The silhouette of the chicken represents the main product of the

company. The black-shaped pan represent the strength of the business such as dealing with

company problems in a determined and an effective way. The two stars represent the mission and

vision of the company. Lastly, the crown on the upper right side of the pan represents not only the

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victory or success of the company but also the triumphant feeling of the customers after trying the

company's product.

Figure 1. Chicken Diner Company Logo

Brand Name

Chicken Diner will be offering three recipes which are fried chicken that comes with three

different flavors and can also come with rice, fried potatoes that come with two different flavors

and lemonade made from fresh lemon pulp namely: Chicken Bonk as the main product of the entity,

Mojester, and Lemnoster. It is derived from the words Chicken Bong, Winchester, and Booster.

The company chooses these names because of their uniqueness and authenticity. Also, the

company follows a PUBG-inspired theme. Chicken Diner aims to be known for serving quality

food and services in a consistent way.

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Brand Mark

Chicken Diner offers three products, Chicken Bonk their main product, Mojoster, and

Lemnoster. The company made three brand marks. See figures 2, 3, and 4 below. All the brand

marks have black ruffled-circle; this is an alternative representation of the pan in the company

logo. See figure 1. Next similarity, they all have crowns that represents the victory of the customers

and the entity. The brand mark for the Chicken Bonk has a mustard-colored chick silhouette and

it also has a target symbol to compliment the company's inspired theme. The brand mark for

Mojoster has a potato with a smiley face wearing shades. It is to represent the swag of being a

PUBG player in comparison of being a Chicken Diner customer. Lastly, the brand mark for

Lemonster has a lemonade cup in it. The brand names are located at the middle bottom part of the

brand mark. Moreover, they follow the company colors which are Mustard and Black.

Figure 2. Chicken Bonk Figure 3. Mojoster Brand Figure 4. Lemnoster Brand

Brand Mark Mark Mark

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 PACKAGE AND LABELING

Packaging

For the packaging, the business will implement the "eco-friendly campaign " since the goal

of the PUBG is survival and by being environmental friendly the business can help to save the

environment as well as the company seeks to be a customer friendly. Therefore, as the packaging

of the product, the Chicken Bonk will have a paper bowl container that can able the customers to

carry the product in their convenience, for the Mojester and Lemonster, the business will use a

paper and disposable cups to make sure the customer can bring it everywhere.

Figure 5. Chicken Bonk Mini Flag Figure 6. Chicken Bonk Holder

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 Figure 7. Mojoster Holder Figure 8. Lemnoster Cup

Labeling

The labeling that is used in the package for Chicken Bonk contains two parts. One is the

brand mark and the other is the flavor of the product. A toothpick attached with a mini flag

presenting the brand mark. The flavor of the product will be written on one of the sides of the food

tray. The mini flag represents a feeling of winning or a stance of domination. The business likes

to make it clear that their products are the best in serving their customers. For the Mojos and

Lemnoster, their brand mark will be attached to their packaging.

Table 1. Chicken Bonk Ingredients

Chicken Bonk Ingredients:

 Chicken
 All-purpose flour

 Pepper
 Fish sauce
 Calamansi
 Curry powder

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  Flavor (Honey, Garlic, Spicy)

Table 2. Mojoster Ingredients Table 3. Lemnoster Ingredients

Mojoster Ingredients Lemonster Ingredients:

 Potatoes
 Lemons
 Egg
 Crispy Fry  Sugar

 Flavor (Cheese, Sour Cream)  Water

Chapter III

Marketing Plan

This chapter includes the vital information about the business such as facts about the

industry, demographic profile of customers, competition, niche, marketing strategy, and sales

forecast.

I. Facts about the Industry

A. Total Size of the Market

Chicken Diner offers three products namely Chicken Bonk their main product, Mojoster

and Lemnoster. Chicken Bonk is a fried chicken that comes with three varieties of flavors.

Mojoster is a fried potato that comes with two varieties of flavors. Lastly, Lemnoster is a juice

made from the fresh pulp of the lemon.

CUEG Corporation aims to cater their products in a convenient way to their chosen market

which is the senior high school students from the Ateneo de Naga University Campus community

located at Bagumbayan Sur, Naga City. The market consists of 368 students from ABM, 90

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students from AVFX, 58 students from GAS, 190 students from HUMSS, 43 students from SJ,

964 students from STEM, and 4 students from TAP. The total population of the actual and potential

buyers of the CUEG Corporation is 1,717 students.

Conducting a survey in the market is the most appropriate way to know the demand in the

offering. Each segment in the market has to have a definite number of respondents to acquire

accurate data that are needed. CUEG Corporation came up with 95 respondents using the Slovin’s

Formula with 90% confidence interval and 10% margin of error. Applying the formula (Population

of subgroup  Total population)  sample size, arises to division of respondents that are 20 ABM

students, 3 GAS students, 5 AVFX students, 11 HUMSS students, 3 SJ students, 53 STEM

students and 1 TAP student.

After completing the things that has to be done in terms of facilitating the survey results, it

led to that 79 out of 95 respondents are willing to try the business’ main product which is the

Chicken Bonk or fried chicken. On the other hand, 81 out of 95 respondents are agreeing to the

company to serve their Chicken Bonk with rice. Next, 81 out of 95 respondents are also willing to

purchase their Mojoster or fried potatoes while 76 out of 95 respondents are interested in acquiring

the company’s Lemnoster or fresh lemon juice.

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B. Market Share

As said in the first part, CUEG Corporation aims to offer its product to the senior high

school students of the Ateneo de Naga University community that consists of 368 students from

ABM, 58 students from GAS, 90 students from AVFX, 90 students from HUMSS, 43 students

from SJ, 964 students from STEM, and 4 students from TAP with a population total of 1,717

students. However, the business would not be able to cater all the potential and actual buyers

because of the lack of starting capital, time preparation and manpower. Even so, CUEG

Corporation is aiming to capture at least 3-6% overall market share.

C. Historical Demand and Supply

Table 4. Demand and Supply of Competitors

July August
Competitors Demand
Demand Supply Demand Supply
Ms. Peachy’s 2,170 1,860 2,600 2,300 305
Cuisne

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 Don Jaime 2,480 2,200 2,730 2,500 255
By: Don at
Donya Food

Table 4 illustrates the approximate demand and supply of the chicken, fries, and fresh fruit

juices over the last two months of operations of the company’s competitors as well as the demand

gap. 560 is the demand gap which is being expected by the company to be the available part of the

market that they can be able to serve.

D. Projected Demand and Supply

Figure 10. Emphatic representation of how

much the customer are willing to pay for
17% Chicken Bonk
Yes
No
83%

15%

Yes
Figure 9. Emphatic representation of No
customers’ willingness to purchase Chicken 85%
Bonk

4% 4%
5%
Figure 11. Emphatic representation of
₱45-50
customers’ willingness to purchase Chicken
₱50-55
Bonk with rice
₱55-60

87% ₱60-65

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 4% 4%
Figure 12. Emphatic representation of how
5% much the customers are willing to pay for
₱45-50 Chicken Bonk with rice
₱50-55
₱55-60

87% ₱60-65

15%

Yes
No
85%

Figure 13. Emphatic representation of customers’ willingness to purchase Mojoster

Figure 15. Emphatic representation of

customers’ willingness to purchase
11%
Lemnoster
₱25-30
4%
₱30-35

89%

₱25-30
₱30-35

Figure 14. Emphatic representation of how 96%

much the customers are willing to pay for
Mojoster
Figure 16. Emphatic representation of how
much the customers are willing to pay for
Lemnoster
20%
Yes
No
80%

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 Figure 17. Emphatic representation of the
customer’s preference for the flavor of
Chicken Bonk
31% Honey
39%
Garlic
Spicy
30%

25% Cheese
44%
Sour Cream
Barbeque
31%

Figure 18. Emphatic representation of the

customer’s preference for the flavor of Mojoster

After collecting the survey forms gathered from 95 respondents, figure 9 represents its

results. The respondents came from different segment: ABM, GAS, AVFX, HUMSS, SJ, STEM

and TAP senior high school students from Ateneo de Naga University. The summary of survey

results shown in the figure above only shows the results of the survey questions that can only affect

the projected demand and supply of Chicken Diner.

The result of the survey conducted by the business owners shows that 83% of the 95

respondents would try the company’s Chicken Bonk and 87% of the customers who are willing to

purchase the product preferred the price range of ₱44-50. Next, 85% of the 95 respondents prefer

Chicken Bonk with rice and 89% of them voted ₱50-55 as the price range for the meal. For the

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Mojoster, 85% of the 95 students are willing to try it and 89% of them selected the price range of

₱25-30. Lastly, 80% of the respondents are willing to acquire the Lemnoster and 90% of them

agreed with the price range of ₱25-30. Within this, Chicken Diner will produce 40 servings of their

products in each day. In terms of flavors, since the result of the customers’ flavor pick for Chicken

Bonk are quite close and the company aims to offer a variety of flavors, the business decided to

obtain Honey, Garlic, and Spicy as the official selection of flavors for the Chicken Bonk. On the

other hand, for the Mojoster, the Chicken Diner eliminated the flavor Barbecue in the selection of

flavors for it has a low percentage result compared to the other flavors which are Cheese and Sour

Cream.

E. Trend in the Market

According to Gregory Ciotti (n.d), the message of a brand is important to people, but only

if they share the same values and beliefs. 64 % said that it was because of "shared values" with the

business in question for those who have indicated a powerful connection with a single brand. Ciotti

distinguishes TOMS Shoes as one example of brands where consumers do adhere because of its

campaign they will donate a pair of shoes for every purchased product. Hence, consumer will buy

the product depending on the stand of the company even there is no guarantee that the consumer

will receive the best quality of the product or service. George Lowenstein (n.d) stated that

consumers prefer to purchase one product that contains parts rather than purchasing a multiple part

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separately. Lowenstein’s research indicates consumers are willing to pay higher price for a whole

product rather than buying multiple products with lower price. Moreover, customer prefer a

product that has easy process and none time consuming products. Furthermore, with this market

trend the CUEG Company will adapt the changes to be able to cope in this behavior of the market.

The CUEG Company is selling best quality products that promotes eco-friendly, which the

company will use biodegradable containers for each products. The company will create a stand,

that is to save the environment, which most of the consumers will support that will result to

increase market. The CUEG Company will also provide a promo which is package of all the

products, that contains the variety of foods that the company is selling, which will apply the

Loewenstien’s study.

F. Growth Potential

The main ambition of the business is to maximize product, produce profit and

increase productivity. In order to achieve these goals, the business must have an effective strategies

and efficient planning. The company must have a high capital beginning. High start-up capital will

allow the business to create a high-quality product to make the customers satisfied. High start-up

capital is important to the business for improving the quality of products and to offer a variety of

flavors to satisfy the demand of the customers. This will help the business to avoid the

disappointment and dissatisfaction of the customers. Furthermore, High start-up capital will help

to prevent the shortage of production due to demand of the consumers. Also, CUEG Corporation

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considered the 4P's which stands for the price, product, place and promotions. In terms of place,

the business should be located in an accessible and comfortable place so that the customers can

easily visit the business and have a good ambiance with tasty food. Regarding the price, the

business will adapt market skimming by setting a higher prices of the products first, when the

business builds a good relationship to the consumer and have a loyal customer that is the right time

to lower down the prices of the product. In terms of promotions, the business will create a social

media accounts such as Facebook page, Twitter accounts and Instagram to post updates and

showcase the products that the business offers. Moreover, the company will provide posters for

promotional tool to attract more consumers to buy the product. About the product, the business

will offer products that will satisfy the consumers. Nevertheless, with all of the methods and

strategies discussed, the company will be able to increase profit and capital and provide a delicious

product that will satisfy the cravings of customers.

G. Barriers in Entry and How to Overcome them

Every business, may it be a starting or an established one, has vast and relatable problems

along its way. It may vary from one to another but here are the two types of problems in a business.

The internal one, which may be a poison that the business does not put any attention to and may

be killed slowly because of neglect. The external one, which cannot be controlled by the business

and may pose a big threat if it is not dealt with a proper and early manner. To avoid problems that

are massive as to be a threat to the business, it is important to have people in charge who are great

in the essential areas and have goals who put the business’ best interests. Initially, businesses who

start up small are shocked or in a way, overwhelmed about the required money just to make it start

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its operation. The capital, land/rent, infrastructures, supplies, equipment, licenses, permits, salaries

for the starting employees, etc. are what is needed to be present for a business to function, and

money is essential for it to happen.

Here are ways to help one get enough money for their own business. Self-financing,

gaining money by selling personal assets can be ideal, sometimes, one owns things which are

highly valued to others, so it can be used as an advantage. Also, lending on personal bank loans

offer lower rates compared to credit cards. The downside to this is it will be more difficult to loan

without having collateral, which is why it is recommended for people who has no collateral or has

low credit score to find a co-signer who has a good credit that agrees to be responsible for the debt.

Furthermore, generally managing the business is no easy feat. A way to be more efficient and less

on-hand managing is to delegate tasks and assign leaders who specializes in a certain area and

remains true to the business’ mission and vision. It is also better to come up with a 2-3 backup

plan for every situation, for most of the time, plans may be delayed and highly affects the business’

impact to its consumers. Afterwards, knowledge of the target market and how the market works is

essential for the business to survive. Knowing the dos and don’ts and learning from the experience

of others will be a useful blade in climbing up in the industry. Being knowledgeable in every aspect

will also help in backing up plans that can be as efficient as the main plan. Lastly, as the business

will be entering an already established industry with lots of history and experience, being

courageous will set a foot forward than the competition. As entrepreneurs, it is just that we see

things outside the box, and that includes implementing and standing up to what we have planned.

In case the risks, even after being taken still poses the same achievement or potential to its

competitors, the only chance is to improve its overall operations to prove to the consumers that

what the business’ offer is better.

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H. How Changes Would Affect the Company

CUEG Corporation will encounter a dilemma throughout the business. In order to address

a certain issue, the company will make modifications that will help the company. Since the CUEG

Corporation is a food industry company, inflation is one of the prevalent problems experienced by

the company, it can have an impact on the price which affects the customer's conduct to the product

owing to a high price range that was caused by inflation as it impacts the food by the ingredient

that is in use. According to Khan Academy (n.d.), the law of demand states that a higher price

leads to a lower quantity demanded and that a lower price leads to a higher quantity demanded.

Second is the marketing strategy of the company, every month there is an event or celebration that

is happening that the business should procure to blend in with the trends that can help the business

in terms of promotion to increase the number of consumers. Lastly, in terms of financial, starting

a business is rough to start definitely the business need to have the financial capability to form the

business thus assets and liabilities are the foundation of the business to function throughout the

operational cycle.

II. Demographic Profile of Customers

The company's target market is focused on the population of Ateneo de Naga University

community, specifically the senior high school students. In order to properly strategize the

approach to the market, CUEG Corporation utilized market segmentation. This way, the large

target will break down into smaller groups that will help in communication to connect the

consumers in buying the company’s product, making marketing more efficient and effective.

First base of segmentation is the demographic segmentation, in which the focus is in the

Ateneo de Naga University community, specifically the senior high school students that comprises

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of ABM, STEM, HUMSS, SJ, TAP AVFX, and GAS students. Secondly, the company also used

the behavioral segmentation, wherein potential customers are being classified through their buying

behavior, such as the frequency of buying towards similar products (e.g. fried chicken). Lastly,

psychographic segmentation is also used to classify customers that have different choices in flavors

and condiments, and in consideration to the customers that are open for new concepts on

conventional products.

Consequently, the target market of the business would be anyone that are fond of meal

products and refreshing drink in the scope of the borders of the said university campus.

III. Competition

Growing a business without understanding competitors is risky. Market research can

prepare changing markets and prevent businesses from being left behind by the competition. To

truly understand the strengths and weaknesses, this needs more than just a sense of where in

relation to the competition. It is an essential tactic for finding out what your competitors are doing

and what kind of threat they present to your financial well-being.

Table 5. Comparison of Competing Companies Based on Price and Quality of Products

Company Product Quality Availability Selling Process

and Price

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 Ms. Fried  The serving size of the Available at a The selling
Peachy’s Chicken product is big. stall located at process of the
Cuisine w/ rice  The scope of the flour used 2nd floor product is done
(Php50) overhead the taste of the Bonoan at the business’
chicken. Building. stall.
 The taste of the meat is
lacking.
Ms. Fruit  The taste of the juice is Available at a The selling
Peachy’s Juices satisfying for its price but stall located at process of the
Cuisine (Php20- sometimes the amount of 2nd floor product is done
25) sugar exceeds that makes the Bonoan at the business’
product taste too sweet. Building. stall.
 A large number of ice are
being used.
Don Jaime Fries  The product has only one Available at a The selling
by: Don at (Php25) available flavor(cheese). stall located at process of the
Donya Food  The serving size does not fit 1st floor product is done
the product’s price. Bonoan at the business’
 The crispiness and Building. stall.
crunchiness of the product
are sometimes not observed.
Chicken Fried  The fried chicken comes Available at The selling
Diner Chicken with three different flavors various spots in process is
(Php45) such as Honey, Garlic and ADNU directly done
Fried Spicy. campus. with the
Chicken  The product is deep fried customers.
w/ rice with an observed crispiness
(Php50) and crunchiness.
 The serving size satisfies the
product price.
Chicken Lemon  The ingredients are equally Available Theat selling
Diner Juice mixed. various spots in
process is
(Php22) ADNU directly done
campus. with the
customers.
Chicken Fried  The fried potatoes come Available at The selling
Diner Potatoes with two different flavors various spots in process is
(Php25) such as Cheese and Sour ADNU directly done
Cream. campus. with the
customers.
Table 5 shows the prices, quality, availability and selling process of the different businesses

that are considered to be competitors of Chicken Diner. Chicken Diner has its own uniqueness in

terms of the food and drinks they offer. The products have different varieties of flavors to choose

from. It is budget friendly and supports eco-friendly campaign which will acquire a competitive

advantage. With the data gathered, CUEG Corporation started to analyze it to really get a sense of

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how competitors work with their products. After identifying and classifying their strengths and

weaknesses, CUEG Corporation found opportunities to be at par in the competition. Being able to

visualize all of this and drill down into the data to really test assumptions is where a market

research platform comes into its own. With the flexibility to cut the data how it wants, change the

question set and really hone in on the areas that matter to allow to become ultra-targeted in how to

analyze and respond to competition.

IV. Niche

The business plans to furnish potential and actual clients with quality products through

establishing and operating Chicken Diner while maintaining the estimations of the 4Cs. These

goods will be acquainted to the market that can give them the feeling of victory and satisfaction as

follows the company’s vision after tasting the business products’. Furthermore, the CUEG

Corporation expected that their offerings will be beneficial to the senior high school students of

Ateneo de Naga University.

Marketing Strategy
V. Pricing

The marketing mix or 4P’s is a significant instrument that can help the entities analyze

what specific plan of how can they offer their product and figure out what products can they offer

more. CUEG Corporation will use the cost-plus pricing strategy which is simply calculating the

costs and adding mark-up percentage. All the direct labor cost, direct material cost and overhead

costs of Chicken Diner will be added with the set of markup percentage. The researchers also apply

the value-based pricing as they fix the price based on how much the target market believes what

the product is worth. The mark-up percentage will create the profit margin when selling the

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product. The following pricing strategy will apply because of different advantages it will supply

to the company such as profitability, sustainable and convenient.

Table 6. Ingredients and Prices

Product Ingredients Quantity Unit Price Price

Chicken Bonk Chicken 3 kilograms Php170 per kg Php510.00

(with rice)
All-purpose flour ½ kilogram Php70 per kg Php35.00

Pepper 2 packs Php5 per pack Php10.00

Fish sauce 2 packs Php10 per pack Php20.00

Calamansi 1 kilogram Php35 per kg Php35.00

Curry Powder 2 packs Php75 per pack Php150.00

Oil 3 liters Php89 per liter Php267.00

Flavors: 50 grams Php70 per g Php70.00

 Garlic
 Honey
 Spicy

Rice 3 kilograms Php42 per kg Php126.00

TOTAL Php1,223.00

Mojoster Potato 4 1/2kilograms Php89 per kg Php 350.00

Oil 3 liters Php89 per liter Php 267 .00

Crispy Fry 5 packs Php20 per pack Php100.00

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 Egg 12 pieces Php7 per pc Php 84.00

TOTAL: Php852.00

Chicken Bonk Chicken 3 kilograms Php170 per kg Php510.00

(meat only)
All-purpose flour ½ kilogram Php70 per kg Php35.00

Pepper 2 packs Php5 per pack Php10.00

Fish sauce 2 packs Php10 per pack Php20.00

Calamansi 1 kilogram Php35 per kg Php35.00

Curry Powder 2 packs Php75 per pack Php150.00

Oil 3 liters Php89 per liter Php267.00

Flavors: 50 grams Php70 per grams Php70.00

Garlic , Honey and
Spicy powder

TOTAL: Php1,097.00

Lemonster Lemon 40 pieces Php18 per Php720.00

piece

Sugar 21 ½ kilograms Php48 per Php126.00

pack

Water 1 gallon Php40.00 Php40.00

TOTAL: Php886.00

Total Direct Material Php4,058.000

Table 7. Table of Direct Labor

DIRECT LABOR

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 HOURS PRICE PER NO. OF PRICE
HOUR WORKERS
CHICKEN BONK W 4 P 25.00 4 P400.00
RICE
CHICKEN BONK W/O 3 P20.00 3 P 180.00
RICE
MOJOSTER 4 P20.00 3 P240.00
LEMNOSTER 2 P15.00 2 P60.00
TOTAL DIRECT P 880.00
LABOR

Table 8. Table of Overhead

PERIOD COST QUANTITY UNIT PRICE
PRICE
Labelling 160 units P0.1 P16.00
TOTAL P16.00
OVERHEAD

Table 9. Table of Period cost

OVERHEAD QUANTITY UNIT PRICE
COST PRICE
Electricity 8 hours P12/ kwh P20.00
Water
TOTAL P20.00
OVERHEAD

Tables 6,7,8, and 9 show the breakdown of expenses used in producing product of

Mojoster, Chicken Bonk with and without rice, Lemonster and the items that are used for the

packaging and labelling.

Total cost per product

Total direct materials + Total direct labor + Total overhead/Units Produced:

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Php4,058.00+ Php880 +Php20 = Php4,958.00

Chicken Bonk with rice: Php1,223/30 servings = Php40.77

Chicken Bonk w/o rice: Php1,097/30 servings =Php36.57

Mojoster: Php852/40 servings = Php21.3

Lemonster: Php886/50 servings = Php17.72

TOTAL: Php109.68

Price per product with 30% markup

Chicken bonk with rice: Php40.77*.30= Php53.001 = Php55.00

Chicken bonk w/o rice: Php36.57*.30= Php47.541 = Php50.00

Mojoster: Php21.3*.30= Php27.69 = Php30.00

Lemnoster: Php17.72*.30= Php23.036 = Php25.00

The total amount is multiplied to the 30% mark-up is added to the cost with that, The Chicken

Bonks (with rice) costs 55 worth of pesos, Chicken Bonks (meat only) costs 50 pesos, Mojoster

amounting 30 pesos and Lemonster costs 25 pesos. With these prices, products will become

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affordable to the consumers. With a 30% mark-up, the researchers think that they can easily earn

the capital and the business will earn more profit.

A. Place of Distribution

One of the most important decisions business owners make during the planning phase of

launching a business is the identification of the location of the enterprise. This is crucial because

it affects the total costs and revenues that the business can earn which means that the profitability

of the business is highly influenced by its own location. A location which is full of passers-by and

potential customers such as a place where there is an abundant amount of students is the best place

of distribution of a business since it is what caters best to the target market. The CUEG Corporation

will be located inside the Ateneo de Naga University main campus; Xavier Grounds wherein direct

selling will be utilized in the selling of products. Directly selling the products to the customers

would help to easily reaching the target market faster with great accessibility and can also be used

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to gather direct feedback which can be used for the improvement of the business. This also lets the

company create a brand relationship with the customers.

B. Promotional Tools

In the modern time, it is no longer enough for a business to just have a great product. It is

really common that businesses have an “especial” kind of products. Business owners need to

inform customers about the company’s great and unique products and be able to persuade them to

buy it. Promotion in the business world means communicating in the public in order to provide

encouragement for the progress of the business. It is also one of the fundamental factors in the 4Ps

of Marketing Mix. There are various promotional approaches that would probably help the

business to aim the entity’s goals. CUEG Corporation will use both the traditional and modern

promotional approach. The company can put up posters in the common areas where lots of senior

high school students would notice it. Also the company may distribute flyers, post posters or talk

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directly to the company’s future costumers to encourage them to buy their products. These will

also be a promotional strategy of the company. The company would also want to take advantage

of the different social media accounts as a promotional tool such as Facebook and Twitter. It will

be created to post updates about the company’s products so that the consumers would be updated.

The company will ensure that the consumers would not be disappointed with our products.

Figure 20. Chicken Diner Promotional

Poster

Figure 19. Chicken Diner Twitter Page

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 Figure 21. Chicken Diner Facebook Page

VI. Sales Forecast

Due to being new in the industry and the unknown variable which is the public demand, it

is strategic that CUEG company will start out slow and observe how the first month goes. The

company will prioritize producing only a few products in the first week and gradually adjusting

the production per week. To make it possible, the company will watch over the consumers’ order

and demand by openly asking for criticisms and suggestions both personally and virtually.

Table 10. Projected Sales for the first six months of operations

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 Variables September October November December January February
2019 2019 2019 2019 2020 2020
Chicken 600 636 672 708 744 780
Bonk
Quantity
Price Php50.00 Php50.00 Php50.00 Php50.00 Php50.00 Php50.00
Sales in Php30,000 Php31,800 Php33,600 Php35,400 Php37,200 Php39,00
Pesos

Chicken 600 636 672 708 744 780

Bonk with
Rice
Quantity
Price Php55 Php55 Php55 Php55 Php55 Php55
Sales in Php33,000 Php34,980 Php36,960 Php38,940 Php40,920 Php42,900
Pesos

Mojester 800 848 896 944 992 1,040

Quantity
Price Php30 Php30 Php30 Php30 Php30 Php30
Sales in Php24,000 Php25,440 Php26,880 Php28,320 Php29,760 Php21,200
Pesos

Lemnoster 1,000 1,060 1,120 1,180 1,240 1,300

Quantity
Price Php25 Php25 Php25 Php25 Php25 Php25
Sales in Php25,000 Php26,500 Php28,000 Php29,500 Php31,000 Php32,500
Pesos

Table 10 shows all the variables, prices, and projected sales of all the products for the first

six months of operation. 6% was increased per month to the quantity of all variables Chicken

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Bonk, Chicken Bonk with Rice, Mojester, and Lemnoster for the starting six months. Ultimately,

the projected sales were varied based on the quantity of the product.

Bibliography

Foster, P. (n.d.) 8 Barriers to Entry Every Startup Should Know. Retrieved from

https://talkroute.com/8-barriers-to-entry-every-startup-should-know/

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Help Scout. (n.d.) Analysis paralysis and consumer behavior. Retrieved from

https://www.helpscout.com/consumer-

behavior/?fbclid=IwAR0MjCkeuTQxDjcqFGE5ufGy80hLZHCqaDkJcPbtYUv

yzMSOoqxxCD7fP-8

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