Final Marketing Plann

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PAROLE, SYRRA C.

ODIAME, FLORIJEAN D.C.


SURIO, NICHOLAI JENSEN H.
FERERRAS, KIMBERLY C.

12 ABM D- JOSE P. TANTOCO


ChocoMani

(History)

As you walk through the rural streets of the


Philippines, you will often come across a Sari Sari
Store. Sari Sari Store came from the word Sari Sari
means “variety” or “everything”. It’s a family run
convenience store found on almost every street corner in
the Philippines.

There are a lot of goods and products sold at a sari-sari store. It may be a small
enterprise but combining the millions there are all over the country, these sari-sari
stores serve as a "backbone" of the economy since it serves as a catalyst for
entrepreneurship at a barangay or town level. The usually product sold in Sari Sari
Stores are home utilities, toiletries, junk foods, and candies that cost less than five
pesos.

Filipinos known as sweet lover. As majority, their favorite is the choco peanut candy
which has been dubbed as one of the best comfort food. This "humble" candy brings a
sense of pride and ownership since it is "invented" in the country. Much like dinuguan,
halo-halo, and halayang ube, peanut chocolates cannot be found anywhere else in the
world. It is our own version of a homegrown, Pinoy chocolate candy. And sari-sari
stores are only too happy to carry this peanut chocolate.

Choco Mani’s manufacturer is located at Planas St., Anabu I Imus Cavite


Candyline Food Manufacturing Corporation is an enterprise in Philippines, with the main
office in Cavite City. It operates in the Food Manufacturing industry.

Choco Mani, was one of the more popular peanut choco candies in the country,
manufactured by Candyline Food Manufacturing Corporation, has maintained little
changes from the original process and formulation.

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Six years ago when Choco Mani was first conceptualized, It’s founder knew they could
not find a machine to manufacture the product. This being the case, they hired several
experts to customize a machine that they can use to produce Choco Mani.

Choco Mani is made from Grade A ingredients carefully selected and blended to
perfection. Enjoy the full flavor and rich tasting duo of chocolate and hi-grade roasted
peanuts. Each piece of Choco Mani is machine-packed in a foil and then semi-
permeable plastic. Machine packing in itself adds to the quality of the product by
decreasing the chances for contamination. Choco Mani coins are even pillow-packed.
This allows for a more hygienic product.

Year passed, Choco Mani drop its net sale because lot of competitors arrived. Lot of its
competitor become famous and people forgotten the delicious taste of Choco Mani.
Before, Choco Mani can easily notice in the market and can buy in any supermarkets.
But now, Choco Mani is slowly forgotten and difficult to find in the market.

The manufacturer of Choco Mani, Candyline Food Manufacturing Corporation sold this
product to its sister company which is Heavenly Sweet. The former manufacturer seems
to visualize greater opportunity to innovate this product and to be well-known in the
market. Heavenly Sweet Co. want give much better public image to the market that will
surely attract customers.

The taste of peanut chocolates years ago is slightly replaced its formulation. Choco
Mani was once become famous way back 90’s. Knowing that a one person know this
product is an indicator that he/she born in that era.

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TABLE OF CONTENTS

I. EXECUTIVE SUMMARY…………………………………………………………………..5
II. SITUATIONAL ANALYSIS…………………………………………………………….….6
MARKET SUMMARY

A. TARGET MARKET…………………………………………………………………....6
B. MARKET DEMOGRAPHICS…………………………………………………...…....6
C. BEHAVIOURAL SEGMENTATION……………………………………………....…7
D. MARKETING NEEDS…………………………………………………………………7
E. MARKET TRENDS………………………………………………………………...….8
F. SWOT ……………………………………………………………………………...…..9
G. MARKET GROWTH…………………………………………………………………..10
H. COMPETITORS……………………………………………………………………….12
I. PRODUCT OFFERING……………………………………………………………….13
J. KEY TO SUCCESS…………………………………………………………………...13

III. OBJECTIVES ……………………………………………………………………………13

IV. PRODUCT STRATEGY………………………………………………………………….14

A. BRANDNAME………………………………………………………………………...14
B. PACKAGING………………………………………………………………………….14
C. MARKET BASED MISSION STATEMENT ………………………......................15
D. PRODUCT POSITIONING/ UNIQUE SELLING PROPOSITION……………….16

V. PRICING STRATEGY……………………………………………………………………16

VI. DISTRIBUTION STRATEGY……………………………………………………………17

VII. INTEGRATED MARKETING COMMUNICATION STRATEGY……………………17

A. ADVERTISING…………………………………………………………………………17
B. PUBLIC RELATIONS……………………………….………………………………...19
C. CONSUMERS SALES PROMOTION……………………………………………….20
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D. DIGITAL MARKETING……………………………………………………………20

VIII. FINANCIAL STATEMENT....………………………………………………………..21

A. SALES BUDGET ……………………………………………………….21


B. SALES FORECAST………………………………………………………….21
C. PRODUCTION BUDGET……………………………………………...........22
D. COST PER PIECE……………………………………………………………22
E. DIRECT MATERIALS BUDGET……………………………………………23
F. DIRECT LABOR BUDGET………………………………………………….23
G. MANUFACTURING OVERHEAD BUDGET………………………………24
H. SALES AND ADMINISTRATIVE EXPENSE BUDGET………………….24
I. STATEMENT OF COST OF GOODS SOLD……………………………...25
J. INCOME STATEMENT………………………………………………………26

REFERENCES……………………………………………………………………………..27

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I. EXECUTIVE SUMMARY

Heavenly Sweet will introduce a new product with a lot of health


benefits in the market that directly reach the targeted customers. Peanut
Better is a peanut- chocolate candy, made from grade A ingredients
added with powdered milk that carefully selected and blended to make a
perfect and nutritious kinds of chocolate nuts. Peanut Better will be able to
bring delight into every customers faces as a reflection of their satisfaction
and joy in eating high quality delicious candy.

Peanut Better provide lots of health benefits like it will lessen the
stress of people and also it lowers the risk of having a heart attack at the
same time it is good on building up our energy and gives satisfaction to
our target market, kids. Our product will also provide everyday unique
taste of satisfaction for every bites of Peanut Better product. Other
customers seem that Peanut Better is similar to other chocolate candy, but
Peanut Better will give the unique taste and delight to every customers as
they taste high quality peanut- chocolate candy.

Heavenly Sweet aims to be famous in the market and will produce a


large amount of product. Peanut Better was innovated to be much better
peanut- chocolate candy. As the company advertise this product, they use
social media networks like Facebook, Twitter and Instagram. Company
seems that it’s the best way how to advertise the product and reach to its
target markets and create good public image. Peanut Better ensure that it
will be available in all markets as it give delight and taste of joy to the
customers. Otherwise, the company innovate this product to help the
company that wants to accomplish their mission and market objectives to
bring out the growth of the company but also improve to trustful product
from their customers, for we the company is widely open for new
innovations as it brings more success to the market
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II. SITUATIONAL ANALYSIS

MARKET SUMMARY

A. TARGET MARKET

Kids - Heavenly Sweets offer their variety of cheap chocolate product to


young children in the ages of three to twelve years old. Children now a day loves
sweets. Children are sweet so as chocolates. Sugar content in chocolates vary
from 35 to 70 percent. Sugar makes food taste good and fat makes
food feel good. Chocolate satisfies children. Pleasant aroma and distinct flavor
also add to it. And now you get a sensory experience like no other thing can
provide. That’s why we love every bite of it, children get more addicted to
chocolate.

B. MARKET DEMOGRAPHICS

VARIABLES

AGE  Kids – 3 to 12 years’ old

STATUS  Single

SOCIAL CLASS  Lower class


 Middle class

OCCUPATION  Students

LOCATION
 Urban and rural places
Density
 Philippines
Geographic

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C. BEHAVIORAL SEGMENTATION

BEHAVIOR TO NOTICE IN YOUR CUSTOMERS


PURCHASING BEHAVIOR Variety Seeking Buying Behavior

OCCASION/TIMING Regular days, Children's party, Family bonding, Picnic

BUYING RATE Mid-level users, Light users

USER STATUS Potential users, First time users, Regular users

BRAND LOYALTY Switcher, Shifting loyal

D. MARKET NEEDS

Peanut Better is a nutritious food, easy to buy and fun to eat with
your friends and family. It is made from grade A ingredients added with
powdered milk that carefully selected and blended to make a perfect and
nutritious kinds of chocolate nuts. It is a duo flavor of chocolate that are
made from a good quality of cacao bean and groundnut or peanuts. We
can get lots of nutrients in this product which can help maintain good
health for children as well as teenagers and adults. Chocolate contains
iron that are responsible for blood reproduction, magnesium that helps
maintain normal nerve and supports a healthy immune system, and
calcium for a strong bones and teeth. Peanuts that contains vitamins
niacin or vitamins B3 that boost brain function and helps lower cholesterol
and pantothenic acid or vitamin B5 that can convert the food you eat into
energy. Each piece of Peanut Better is machine-packed in a foil and semi-
permeable plastic and also packed as bundle in a presentable box, that
adds to the quality of the product that decrease the chances for
contaminations for the healthier eating of everyone.

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This product will surely fit for the children who love sweet foods and
also for the adults specially for a health conscious.

E. MARKET TRENDS

BULL TRENDS: HANY made in high-grade Philippine peanuts, blend


them with fine, superior quality chocolate and mix them with sugar and
powdered milk. What you get is the most heavenly combination of
luscious chocolate and scrumptious peanut in thumb sized bar or crown
shaped coin which crumble in an amazingly smooth manner for a flavor
that everyone craves for. It is manufactured by one of the famous
manufacturer of candied in the Philippines. This milk chocolate bar from
the Philippines has been pleasing sweet tooth cravings for what feels like
an eternity not just of children but also children at heart.

MARKET TOP: CHOC-O-STAR Milk Chocolates is made with cocoa


powder blended with milk to get that enjoyable indulgent and delightful
goodness in each bar. Each pack of Choco World Choc-O-Star Milk
Chocolates is 8.47oz with approximately 20 milk bars which you can share
with others. It is also fun to give Choco World Choc-O-Star Milk
Chocolates as a gift or pasalubong, or as a prize during kids’ parties. It
can be used also to appease someone who’s having a tantrum, or change
their mood from bad to happy demeanor. This product is well- known
brand in the country and can see in any store nationwide.

BEAR MARKET: CHOCNUT is a chocolate product manufactured by


Unisman and later, Annie’s Sweets Manufacturing and Packaging
Corporation (same as the Hany’s manufacturer). It originated in the
Philippines and has endured as one of the country’s most consumed
children's snacks. While only mass-produced in the Philippines, many
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‘Filipino stores’ abroad sell the item. Ingredients of Choc Nut include
coconut milk, crushed peanuts and cocoa powder, resulting in a distinct
nutty taste and crumbly texture.

MARKET BOTTOM: PEANUT BETTER appears to be the market bottom


since it will become unfamiliar to the market. It will be considering as a
trend reversal, the end of a market downturn, and the beginning of an
upward moving trend.

F. SWOT ANALYSIS

STRENGTH
 Made of tasting chocolate and hi-grade roasted peanuts and
Grade A ingredients to ensure a good quality product
 Affordable price
 New innovate
 Highly efficient, low-cost manufacturing

WEAKNESSES
 Lots of competitors arrived
 Can cause dental problems with chocolates consumption
 Isn’t available in all markets
 Product forgotten because of other new product

OPPORTUNITIES
 Chocolate flavored product
 Customers want to richer products or changing taste
 Social Media can be used for great exposure
 Can improve net sales by using effective advertisement

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THREATS
 New brands are entering
 Existing brands are introducing new variants of product

G. MARKET GROWTH

Peanut Better targets the children in lower, middle or upper class. It


contains some ingredients with a lot of benefits. It lower blood pressure by
improving nitric oxide levels and blood vessel function. Soon, it will be
famous in the market and will produce a large amount of product.

H. COMPETITORS

Direct Competitors

ANNIE'S HANY MILK CHOCOLATE line has the best impact that can be
seen throughout the world. It is comprised from high grade Philippine
peanuts, blended with fine sugar, high quality chocolates and powdered
milk. Hany comes in a thumb sized bar and crown shaped coin.

KING CHOC NUT is a chocolate peanut originated in the Philippines


become one of the country's most consumed young children snacks. It
was manufactured by Unisman and later on Annie's Sweets Manufacturing
and Packaging Corporation takes over. Choc nut ingredients include
crushed peanut added with fresh coconut milk and cocoa powder.

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BARNUTS is made with the perfect blend of premium cocoa and finest
ground peanuts to create that deliciously creamy, chocolatey and nutty
goodness. A true indulgence for all choc-o-peanut connoisseurs. Bite-
sized peanut brittle candy made with loads of crunchy nuts, its sweet
buttery coating adding delight to your snacking experience.

CHOC-O-STAR Milk Chocolates is made with cocoa powder blended with


milk to get that enjoyable indulgent and delightful goodness in each bar.
Each pack of Choco World Choc-O-Star Milk Chocolates is 8.47oz with
approximately 20 milk bars which you can share with others. It is also fun
to give Choco World Choc-O-Star Milk Chocolates as a gift or pasalubong,
or as a prize during kids’ parties. It can be used also to appease someone
whose having a tantrum, or change their mood from bad to happy
demeanor. This product is well- known brand in the country and can see in
any store nationwide.

Indirect Competitors

MILKEE POLVORON is an old time favorite polvoron manufactured by


Rebisco. Baked small cookie and crumbly milk candy. It has the different
variant like the original milk flavor and cookie and cream. They also use
individual packaging, using laminated foils to retain the freshness and
milky taste of the polvoron.

FLAT TOPS is a milk chocolate manufactured by RICOA Chocolates. The


packaging has individual foil wrappers with the color of orange, silver and
white. Fat tops contains milk solids, refine sugar, hydrogenated vegetable
fat, cocoa powder, emulsifiers, iodized salt, vanillin and cinnamon. It is
distinctively waxy due to the absence of cocoa butter which is difficult
ingredient in the Philippines.
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I. PRODUCT OFFERING
Our product has the following benefits:

Peanut Better have the ingredients like roasted peanuts, sugar,


cocoa powder, vanilla, and added with powdered milk. It tastes exactly as
you would image. With simple ingredients and no chemicals, you get a
high quality snack. It is satisfying with its simple make up tasted a strong
flavor of peanut chocolate added with powdered milk. Peanut Better is
obviously a peanut chocolate offer quality of health benefit. It contains the
most important ingredients, Cacao, which is rich in polyphenols, which
have significant health benefits, including reduced inflammation and
improved cholesterol levels. However, processing cocoa into chocolate or
other products can substantially decrease the polyphenol content.

As we search for other benefits of our Peanut Better, Studies reveal


that its one ingredient, cocoa is rich in flavones, which lower blood
pressure by improving nitric oxide levels and blood vessel function. Cocoa
containing between 30–1,218 mg of flavones can reduce blood pressure
by an average of 2 mmHg. Our Peanut Better also lessen the stress of
people and also it lowers the risk of having a heart attack. Also the
ingredient roast peanut that are an exceptionally good source of protein.

J. KEY TO SUCCESS

To succeed in business today, it needs to be flexible and have


good planning and organizational skills. The common notion in coming up
with a business idea is that it has to be something unique. It’s not good to
put up something that has been done by ten other entrepreneurs. But

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contrary to what companies may think, people still tend to lean on the
familiar — the comfort in knowing a food product before buying it. They
may at times be adventurous in their choices, but they will often prefer the
familiar. It is good for the company to give familiar product to the
customers but it is just not like that. Be familiar but different.

The company’s priority is to put customer’s value first, and being


flexible is willing to change or try different things for the customer’s
satisfaction. The company need to follow what are the customer’s desires
and Peanut Better are offering something that customers expectation will
live up to satisfaction. The company will keep on innovating unique
products for satisfying the customer’s wants and desires so that will lead
to loyal customers and more potential buyers.

III. OBJECTIVES

FINANCIAL OBJECTIVES
 To provide high quality of peanut chocolate added with
powdered milk in a budget friendly price

MARKETING OBJECTIVES

 To introduce a new product with a lot of health benefits in


the market that directly reach the targeted customers
 To be able to enhance loyal customer’s relationship in a
matter of years and beyond of existence in its industry and
to be aligned with the most popular chocolate candy in the
industry known in local stores
 To be able to bring delight into every customers faces as a
reflection of their satisfaction and joy in eating high quality
delicious candy

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IV. PRODUCT STRATEGY

A. BRAND NAME AND DESCRIPTION


PRODUCT NAME: PEANUT BETTER
TAGLINE: COME, EXPERIENCE THE TASTE OF JOY

Heavenly Sweets is a newly innovated manufacturer company in


the Philippines. It introduces good quality and healthy chocolate candies
made from organics and fresh peanuts. Our product called “Peanut Better”
which means it much better than before. It was innovated to be much
better peanut chocolate added with powdered milk to be more unique to
its competitors.

B. PACKAGING

Our product comes with two packaging. One is the individual packaging
contain a bite of our product Peanut Better. The second one is the bundle; it is in
the presentable packaging contain 32 pieces of Peanut Better chocolate.

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PACKAGING PER UNIT PACKAGING PER BUNDLE

C. MARKET BASED MISSION STATEMENT

Peanut Better aims to provide not only ordinary but a sweet delight with
the perfect combination of high quality chocolate and peanut that will truly bring
joy and satisfaction on the faces of the customers.

D. PRODUCT POSITIONING/ UNIQUE SELLING PROPOSITION

Peanut Better by Heavenly Sweets will position itself as chocolate of all


ages that instantly released its rich tasting flavor in the mouth, good for releasing
stress and bad vibes and it also lowers the risk of having heart attacks.
Customers always think their health at first but they can’t keep their cravings for
something sweet that helps to boost their energy in a budget friendly price.
Peanut Better is differentiated in other brands in terms of its most important

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ingredients which have health benefits and it keeps on maintaining the balance of
customer’s health and feelings. Peanut Better will surely satisfy the cravenness
of every Filipinos and at the same time they stay healthy.

V. PRICING STRATEGY

We will use cost-based as our pricing strategy because everything will be


based on our expenses and also on or competitors. The price of our product
must be affordable to our customers and aside from that we must give good
quality products. Giving affordable and making good products may attract many
customers from other competitors with the same selling products.

0.50 Markup 95% (0.475) 0.975

Figure # 1. Table for cost based pricing per unit

0.50 x 32 Markup 85 % (13.6) 29.6

Figure # 2. Table for cost based pricing per bundle (32 pieces)

The illustration above shows the formula on how the company came up
with the selling price. The company used Cost Based Pricing because it is a
pricing method used to maximize its profits. Cost-based pricing involves
calculating the cost of the product, and then adding a percentage mark-up to
determine price

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VI. DISTRIBUTION STRATEGY.

Peanut Better candy will be manufactured by Heavenly Sweet Co.. After


the product produced, manufacturer will ship the products to the distributors, the
distributors to the retailers and to the customers. Peanut Better have 32 pieces
per bundle that will cost 29.60 pesos that will distribute to our distributors. Our
distributors will bring the product to its retailers which we plan to supply
supermarkets and convenient stores. Supplying supermarkets will be the best
choice for us to reach the target market. It’s a better opportunity for the product to
be well-known and getting greater opportunity to the market.

VII. INTEGRATED MARKETING COMMUNICATION STRATEGY

A. Advertising
a) Advertising Objectives
The Heavenly Sweet Peanut Better aims to sell a high quality peanut chocolate
to its target consumers that will surely bring joy to their faces and to increase its
sales so Peanut Better will be well known in the market.

b) Advertising Message
The Peanut Better aims to deliver a message to all the consumers. This product
of Heavenly Sweet is a high quality peanut chocolate that you will enjoy every
time. It will provide the consumers the unique taste of peanut that they will surely
love.

c) Advertising Media
The Heavenly Sweet aims to introduce their product Peanut Better through the
use of social media sites like Facebook and Twitter. Where the people will enable
to know and see that our product exist. Giving free taste to the market will also

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help the product to promote itself to the consumers for them to know the sweet
and delightful taste of Peanut Better.

d) Advertising Material

The Heavenly Sweet used advertising materials such as posters. With these
strategies it will advertise the product in a budget friendly expense. It will help to
easily promote the product in different places. It also used as an attraction to
captivate customers interest to the newly innovate product.

TWITTER ACCOUNT

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FACEBOOK PAGE

B. Public Relations

a) Social Media Accounts


Most of the consumers are engaged with social media sites like Facebook,
Twitter and Instagram. Through this, Peanut Better will have a lot of audience
and will be a way to communicate with the consumers. The business will keep
the account updated and will always respond to the customer’s message. This is
the chance for the product to have a good image in the public market.

b) Promotional Material
C. Most of the consumers interested to an appealing and artistic posters. Through
this, it will captivate lot of consumer and help to promote and to engage public
relationship to other people. In addition, sponsorship on children’s evets on
schools or other places can help to promote the product. Such as having own
booths or stalls with Peanut Better’s mascot and be the major sponsor might be

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a great opportunity to catch the attention of the target markets. This is another
chance for the product to have a good image in the public market.

D. Consumer Sales Promotion


Since Peanut Better will be a newly innovate product in the eyes of the
consumers. Giving free taste and free samples will help as to introduce our new
product to the market. It will attract the customers and be curious about the taste
of our product.

E. Digital Marketing
The advertisements of Peanut Better are by using social media because a lot of
people have their own Facebook and Twitter accounts. In this way we can
promote the product and be popular in just a short span of time. The consumers
that already bought and taste the product may give their comments about it,
whether it is good or bad. So with this the Peanut Better will be known just by the
review and recommendation of the consumers, there is no need to spend a lot.

POSTERS LAYOUT

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VIII. PROPOSED BUDGET

Peanut Better
Sales Budget
For the year ended December 31, 2020

Quarter1 Quarter 2 Quarter 3 Quarter 4 Total


Sales in Units 460,800 576,000 691.200 806,400 2,534,400
X selling price per unit 0.975 0.975 0.975 0.975 0.975
Total Sales 449,280 561,600 673,920 786,240 2,471,040

Sales per Bundle 14,400 18,000 21,600 25,200 79,200


X selling price per bundle 29.6 29.6 29.6 29.6 29.6
Total Sales 246,240 532,800 639,360 745,920 2,344,320
Total P4,815,360

Sales Forecast
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
Quarter 1 Quarter 2 Quarter 3 Quarter 4

Sales Forecast

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Peanut Better
Production Budget
For the year ended December 31, 2020

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total


Budget Sale 921,600 1,152,000 1,382,400 1,612,800 5,068,800
Add: Desired Ending
Inventory 57,600 69,120 80,640 92,160 299,520
Total Needs 979,200 1,221,120 1,463,040 1,704,960 5,368,320
Less: Beginning Inventory 0 57,600 69,120 80,640 207,360
Required Production
(unit) 979,200 1,163,520 1,393,920 1,624,320 5,160,960

Desired of ending inventory = 5% of next quarter’s budget sales


Desired of ending inventory = 5% of current quarter’s budget sales

Peanut Better
Cost per piece
Materials Cost per Piece
Roasted Peanuts 0.07
Sugar 0.03
Maltoaxtrin 0.05
Corn Starch 0.03
Whey Powder 0.05
Cocoa Powder 0.05
Vanilla Flavor 0.05
Aluminum Foil 0.03
Product Cover 0.07
Powdered Milk 0.07
Total 0.50

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Peanut Better
Peanut
ManufacturingBetter
Overhead Budget
Peanut Better
Direct Material Budget
For Direct
the year LaborDecember
ended Budget 31, 2020
Quarter1 Quarter 2 Quarter 3 Quarter 4 Total
For the year ended December 31, 2020
Indirect Labor 30,000 30,000 30,000 30,000 120,000
Indirect Materials Quarter 1 5,000
5,000 Quarter 2 Quarter
5,000 3 Quarter
5,0004 Total
20,000
Budget
Depreciation Production Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total
Required
(unit)
Expense- Production 979,200 1,163,520 1,393,920 1,624,320 5,160,960
(unit)
Equipment
Pieces per unit 750979,200 1,163,520
1 750 1 1,393,920
750 1 1,62,320
7501 5,160,960
3,0001
Direct
Depreciation Labor hours per
Budget Products in
unit
Expense- 0.00083 0.00083 0.00083 0.00083 0.00083
pieces 979,200 1,163,520 1,393,920 1,624,320 5,160,960
Total
Machinery Direct Labor
Add: Desired Ending 12,500 12,500 12,500 12,500 50,000
hours
Factory needed
Utilities
inventory 812.736
15,000 58,17615,000 965.722 1,156.954
69.696 15,000
81.216 1,38.186
15,000
92,736 4,283.598
60,000
301,824
Employee’s
Direct Payroll
Labor
Total: Direct cost per hour
Materials 37.5 37.5 37.5 37.5 37.5
Contribution
Total
Need Direct Labor unit 1,860 30,77.6 1,860
1.037,376 36,214.575 1,860 1,860
3,385.775 1,717.056
1,233,216 1,475,136 50,556.975 7,440
128,041.925
5,462.784
Transportation In 500 500 500 500 2,000
Less: Beginning Inventory 0 58,176 69,696 81.216 209,088
Total Manufacturing 65,610 65,610 65,610 65,610
Required Material
Overhead 65,610
Purchase 1,037,376 1,175.040 1,405,440 1,635,840 5,253,696
Less: Depreciation
Cost per pieces
Expense 13,250 0.5013,250 0.50 13,2500.50 0.50
13,250 0.50
53,000
CashMaterial
paid forPurchase Cost 52,360518,68852,360587,520 52,360
702,720 817,920
52,360 2,626,848
209,440
Manufacturing
Overhead Desired of ending inventory = 5% of next quarter’s budget Product in Piece
Desired of ending inventory = 5% of current quarter’s budget Product in Piece

Peanut Better
Sale and Administrative Expense Budget
For the Year Ended December 31, 2020

Quarter1 Quarter 2 Quarter 3 Quarter 4 Total


Advertising Expense 25,000 25,000 25,000 25,000 100,000
Insurance Expense 7,500 7,500 7,500 7,500 30,000
Salaries Expense 160,000 160,000 160,000 160,000 640,000
Delivery Expense 24,000 24,000 24,000 24,000 96,000
Depreciation Expense-
Equipment 750 750 750 750 3,000
Depreciation Expense-
Machinery 12,500 12,500 12,500 12,500 50,000
Miscellaneous Expense 5,000 5,000 5,000 5,000 20,000

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Total Sales and 234,750 234,750 234,750 234,750 939,000
Administrative Expense

Peanut Better
Statement of Cost of Goods Sold
For the Year Ended December 31, 2020

Direct Materials Used


Raw Materials, Beginning P0
Add: Net Cost of Purchase
Purchase-Raw Material P2,626,848
Transportation In 10,800 2,637,648
Raw Material Available for Use 2,637,648
Less: Raw Materials Inventory, End 150,912 P2,788,560
Direct Labor 128,041.93
Manufacturing Overhead
Indirect Labor P120,000
Indirect Materials 20,000
Depreciation Expense 53,000
Factory Utilities 60,000
Employees Payroll Contribution 7.440
Transportation In 2,000 262,440
Total Manufacturing Costs 3,179,041.93
Cost of Good Manufactured P3,179,041.93

24
Peanut Better
Income Statement
For the Year Ended December 31, 2020

Sales
Cost of Sales P 4,815,360
Cost of Sales
Finished goods, beg. P 0
Add: Cost of Goods 3,179,041.93
Manufactured
Goods Available for Sale 3,179,041.93
Less: Finished goods, end 292,032
Cost of Sales 2,887,009.93
Gross Profit P1,928,350.07
Operating Expense
Selling Expense
Delivery Expense P 96,000
Advertising Expense 100,000

Total Selling Expense P 196,000

Administrative Expense

Office Salaries Expense P 640,000


Insurance Expense 30,000
Depreciation Expense 53,000
Miscellaneous Expense 20,000
Total Administrative 743,000
Expense
Total Operating Expense 939,000
Operating Profit P 989,350.07
Finance Cost 100,000
Profit P1,089,350.07

25
REFERENCE:

 Candy Line Food Manufacturing, Corporation, “Choco Mani” Description


retrieved from https://1728-ph.all.biz/
 ChocoMani’s Facebook page
https://www.facebook.com/ChocoManiPH/...choco-manibilangin...choco-
mani.../147793372557049/
 https://www.full-suite.com/blog/business-permit-renewal-fees/
 http://www.marketingmo.com/strategic-planning/how-to-develop-your-distribution-
channels/
 https://www.naturespath.com/en-us/blog/the-health-benefits-of-cacao/
 https://www.prnewswire.com/news-releases/oil-roasted-salted-peanuts-now-
certified-by-american-heart-association-as-heart-healthy---even-salted-peanuts-
can-be-low-in-sodium-meeting-criteria-for-140-mg-of-sodium-per-serving-
197133211.html

26

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