GROUP 2, TANGY-KIMCHI BUSINESS-PLAN Final
GROUP 2, TANGY-KIMCHI BUSINESS-PLAN Final
GROUP 2, TANGY-KIMCHI BUSINESS-PLAN Final
Airabelle A. Quiatchon
Hannah E. Banguis
Page
Title Page
Table of Contents
INTRODUCTION
Company Name
Product or Service
Recipient
Purpose
EXECUTIVE SUMMARY
Mission
Opportunity
Target Market
Pain Points
Solutions
Distinctiveness
Innovation Done
MARKETING MIX
Product
Product Description
Materials
Potential Suppliers
Product Function
Price
Pricing Strategy
Pricing Formula
Computation
Place
Vicinity Map
Placement
Volume
Display
Resale Pricing
Promotion
Advertising
Sales Promotion
Public Relations
Selling
People
Organizational Structure
Job Positions, Description,
Specifications and Salary
Packaging
Packaging Material
Brand Name and Logo
Over All Appearance
Process
MARKET ANALYSIS
PESTLE Analysis
Porter’s Industry Analysis
Competitors
SWOT Analysis
BUSINESS MODEL
Offering Model
Target Market
Value Proposition
Channel
Customer Bonding Strategy
Revenue Model
Operating Model
Value Network
Resources and Processes
Complementors
Configuration
Cost
FINANCIAL STATEMENTS
Income Statements
Statement of Cash Flows
Balance Sheet
Financial Ratios
CONCLUSION
INTRODUCTION
According to Karthika (2017), Kimchi, a staple in Korean cuisine, is a traditional side dish made
from salted and fermented vegetables, most commonly napa cabbage and Korean radishes, with
a variety of seasonings including chili powder, scallions, garlic, ginger, and jeotgal. Kimchi is a
perfect food for all vegetarian and those people who love to eat sweet and spicy foods. A new
study has shown that eating foods such as the fermented Korean cabbage or Kimchi could
decrease levels of social anxiety or social phobia. Moreover, there is a variety of kimchi –
Kimchi fried rice. Kimchi fried rice is made primarily with kimchi and rice, along with fried or
Kimchi business is an unusual business in our country since it is not our traditional food but
through the influence of Korean culture and tradition some of the business man tends to sell
kimchi. Hence, it is affordable to invest and to maintain the business as long as it is properly
cook and store in a fridge, anyone could access to buy and anyone could enjoy it. Aside from
that, putting up a kimchi business would definitely fun and exciting because everyone loves
Korean foods and they will turn to kimchi especially when they are craving Korean foods.
Company Name
Business Name
The business name of the product is “tangy-kimchi”, means a kimchi fried rice that has a
piquant flavor and appetizer smell. Product name has its own color in which each colors
represents different meaning, white background of the product name represent the rice, next the
maroon color represent the characteristics of the product also its original taste and flavor, next
green, color green represents vegetables in which it also uses vegetables as the main ingredients
more specifically napa cabbage. Using different vegetables ingredients makes the product
Kimchi originated in Korea during the Three Kingdoms period (1st century BC to the
7th century AD). By that time, families had long used preservation methods to keep a constant
food supply for their families during the long, harsh winters. So, when the first cabbage arrived
to Korea in 2030 B.C., families turned to fermentation to preserve it. In the 16th century, the first
chili peppers arrived from the Americas giving kimchi its signature spicy flair, and the recipe
was complete. A blend of cabbage, garlic, ginger, hot red chili peppers, vegetables, fish sauce
and often seafood, kimchi has since established itself as a Korean culinary staple.
Kimchi with fried rice business is a sole proprietorship in which it is owned and run by a
Single person. Sole proprietorship is a type of business entity that is managed and controlled by
one individual in whom there is no separate legal identity between the owner and the business.
Hence, the business owner is entitled to all of its profits (Glos& Baker). Thus, the owner receives
all of the expenses, management, business transactions and has unlimited responsibility for all
losses and debts of the business. However, the nature of the business is Manufacturing Business
because the process of the product is made by machineries. Furthermore, manufacturing is any
industry that makes products from raw materials by the use of manual labor or machinery and
Number of Employees
The business will have a total of 14 employees, four from the General Manager
(Finance/Branch/Marketing/Production), five from the Service Crew, two from the Delivery
The employees of the business will operate Monday to Saturday from 7:30 am to 10 pm and they
have a total of 15 hours to work. Moreover, the salaries will be based according to their job, the
managers will received a Php12, 000 worth of cash, Service Crew and Delivery Crew will
received Php7, 500 .00 worth of cash and the Bookkeeper will received Php7, 750. 00 worth of
Product
Kimchi Fried Rice ( Kimchi Bokkeumbap), is a fried rice dish made by stir-frying Kimchi and
rice together with some seasonings. It’s a classic Korean comfort food that’s made in households
across the country to use up leftover rice and overripe Kimchi. In addition, It is very functional
and beneficial to our health since it contains low in calories but pack with nutrients like iron and
some vitamins, it offer probiotics which may help prevent and treat several conditions, it can also
boost your immune system for Lactobacillus found in kimchi and it can reduce inflammation and
Recipient
. The recipient of the business will be the investors. An investor is an individual, company or any
entity that invests capital with the aim of making a profit. The investor’s main concern is to maximize
Purpose
A Business Plan is a document in which a business opportunity or a business already under way, is
identified, described and analyzed, examining its technical, economic and financial feasibility. The Plan
develops all of the procedures and strategies necessary in order to convert the business opportunity into
an actual business project. It is an indispensable tool in order to start up a business project, independently
of the size of the project and/or of the amount of business experience of the entrepreneur. The purpose of
a Business Plan is to identify, describe and analyze a business opportunity and/or a business already under
way, examining its technical, economic and financial feasibility. Moreover, it should serve as a business
card for introducing the business to others like investors whom the recipient of our business and when it
comes time to seek cooperation or financial support of any kind, we can lean on to them.
Executive Summary
Mission
The mission of the business is to create a healthy environment where people’s satisfaction is their top
priority while serving them the best kimchi they never had.
Vision
The mission of the business is to be known as the best Kimchi Fried Rice in the whole Philippines while
Opportunity
a. By going with the trends just like the Kimchi and putting some twist on it because Filipinos are fond of
b. The business will also offer promos during special occasions like Christmas season by offering them a
family-sized kimchi but the price is still equivalent to the price of two plastic containers of Kimchi with
fried rice.
c. The business will also sponsor and participate in some events within North Cotabato like Festivals
where the business will present information and an interactive “live” experience with a product.
Target Market-Our target market are the customers who’s middle -class B and C level and also the lower
income D customers but loves to eat Korean dishes so much. We choose those target market because the
A. Spicy ingredients - Give customers a choices for their preferred flavor, and make a kimchi which
B. High price – We are going to adjust the quantity of the product in every packaging and also
making a kimchi that has various sizes with various prices too.
C. Abundant competitors –Creating a kimchi product which is different from others like putting an
egg on it and also add fried rice. We are also going to put some additional secret ingredient to
Distinctiveness
2. The product is affordable and anyone can have it without spending too much money.
3. We do online selling that is why anyone do not need to go to our store to buy the product.
Kimchi is a traditional fermented Korean side dish made with vegetables and many seasonings. However,
to make our product distinct with the common Kimchi, we innovate our product from the packaging to
the product itself. For the innovation of the product, instead of plain kimchi which is not that appealing,
we are going to add Fried Rice and also sunny side up egg to make it very delectable and it can be eaten
for breakfast, lunch and dinner. In packaging, it will be put in a disposableplastic container that is for the
orders, while, when the customers prefer dining in on our store, the kimchi fried rice will be put in a plate
MARKETING MIX
Product
Product Description
Kimchi is a well-known side dish in Korea. Kimchi is a staple in Korean cuisine, is a traditional side
dish made from salted and fermented vegetables, most commonly Napa cabbage and Korean radishes,
with a variety of seasonings including chili powder, scallions, garlic, ginger, and jeotgal. The appearance
of the product depends on its flavor. It has a two classification, the customers should decide what kind of
kimchi fried rice they want, quite spicy or extra spicy. The first portion that comes in the product will be
packed in disposable plastic container that has a same weight or equal measurements. Kimchi is a perfect
food for all vegetarian and those people who love to eat sweet and spicy foods. A new study has shown
that eating foods such as the fermented Korean cabbage or Kimchi could decrease levels of social anxiety
or social phobia.
Materials:
Potential Suppliers
The making of kimchi with fried rice requires a high-quality ingredient which is the vegetable. In a
Wikipedia, Vegetables are parts of plants that are consumed by humans or other animals as food. The
original meaning is still commonly used and is applied to plants collectively to refer to all edible plant
matter, including the flowers, fruits, stems, leaves, roots, and seeds. According to Food and Nutrition
Research Institute (FNRI), vegetables are valued not only for their contribution of fiber to the diet, but
also for their nutrient content. Green leafy and yellow vegetables are rich in iron, vitamin A, vitamin C,
calcium, and other micronutrients. The possible supplier for the ingredients needed in making Kimchi
with fried rice is Mr. Juan Lacuesta who have a vegetable farm located at Pentil, Aleosan, North Cotabato
because they offer deliveries for their buyers of their vegetables. The prices for their vegetables depend
on the kinds of the vegetables you want to buy but the main ingredients of Kimchi which is the Cabbage
costs 50 pesos per kilo. In case of the shortage of the vegetables in the farm of Mr. Lacuesta, the business
also have alternative suppliers which are the Villamor Store and Maricel Store with their vegetables that
cost of also 50 pesos per kilo and it is located at the Midsayap Public Market. There are lot of vegetables
in the different public markets of every Municipalities in North Cotabato, thus, there is no problem in
looking for suppliers of our vegetables since they are available in every public market of Municipalities
of North Cotabato.
Product Functions
a. Functional Benefit: A new study has shown that eating foods such as the fermented Korean
b. Economic Benefit: The adaptation and influence of the Korean cuisine in the Philippines will have
a big impact on increasing demand and profit of the Kimchi with Fried Rice Business.
c. Emotional Benefit: Kimchi business would definitely fun and exciting because everyone loves
Korean foods and they will turn to kimchi especially when they are craving Korean foods. The owner
d. Social Benefit: Many people buy will buy Korean Foods to satisfy their cravings because of the
influence of their favourite k-drama or k-pop idols. The others might think that the owner is a Korean
or Korean lover and they will start patronizing the product and the business. It will be an advantage
Price
Pricing Strategy:
The business will use a mark-up pricing method. Mark-up pricing or cost plus pricing is a pricing
strategy where the price of a product or service is calculated by adding together the cost of the product
Pricing Formula:
Computation:
According to Department of Labor and Employment, the new minimum wage of the municipality of
Midsayap is Php311.00 and the basic wage increase is Php18.00 per day.
It can be depicted that both the production staff and marketing staff will be given Php.329.00 per
day and Php8, 554.00 per month in total. It is because they will only work for 26 days in a month which
would be during weekdays and Saturday and they will have Sunday as a rest day. Therefore, the staffs
Additionally, as a business owner it is their responsibility to ensure the welfare and safety of their
employees. Thus, the owner guarantees to provide a health assurance to the employees which is
PhilHealth for there are emergency cases that be avoided. Since the latest contribution total for PhilHealth
is 150.00. The business also ensures to give Social Security System (SSS) to the employees for more
secured workers.
Promotion
Advertising:
Concerning about the advertising of our product, the owners will use print media as well as
the radio advertising and social media for wider information that the product is existing in North
Cotabato. For the use of print media, it can be pliers and tarpaulins. The pliers will cost Php800.00
spreading in different areas and public across North Cotabato. On the other hand, the tarpaulin which is
more costly depending on the sizes will be posted in different places such as terminals, market stores and
plazas and the budget for that will be cost Php8, 000.00. Moreover, for the advertising, through radio can
cost Php18,200.00 per month. The owner will air the product for 3 months in broadcasting radio. For 3
months of airing our product, it will cost Php218, 000.00 in all. However, there is no cost for advertising
in the social media because it will only be posted in Facebook, Instagram and other Networking Sites that
Sales Promotion:
A term of Sale is an agreement between the buyer and seller of goods and services. In this case,
the owners will use four terms of sale. First term to be used is the Cash On Delivery (CBD) where the
buyer should pay when the product is already delivered to their respective area. Second, is the Carriage
and Insurance Paid to (CIP) means that the seller delivers the goods to a carrier or another approved
person (selected by the seller) at an agreed location. The seller is responsible for paying the freight and
insurance charges, which are required to transport the goods to the selected destination. Third, Cost and
Freight (CFR) which the seller is responsible for pre-paying the freight contract. Once the goods are
safely stored on board, responsibility for seller transfers to the buyer, despite the seller paying for the
freight contract to the selected destination place. Lastly, Delivered at Place (DAP) where it is the buyer’s
responsibility to affect any customs clearance and pay any delivery duties. Additionally, while there is no
requirement pay for insurance, the delivery is not complete until the products are unloaded at the agreed
destination. Therefore, the seller should be wary of the risks of not securing insurance. The buyer must be
informed of the delivery before arrangements with enough time to organize insurance.
Public Relation
The proposed business will use public relations through offering free taste to our target market
during the first 5 days of opening of our business. This free taste will be our starter move of introducing
our product to the public and encouraging them to be one of our regular customers. The business will also
offer promos during special occasions like Christmas season by offering them a family-sized kimchi but
the price is still equivalent to the price of two plastic containers of Kimchi with fried rice. However, in
order to avoid complications to our resellers, those free Kimchi with fried rice will be designed and
imprinted in the packaging differently from the regular product. Additionally, the business will also
sponsor and participate in some events within North Cotabato like Festivals where the business will
Selling:
communication of information with a view to persuading customers to purchase. Even though personal
selling is very costly for the company like paying sales forces a basic salary and commissions on the sales
made and providing them with some other benefits e.g. travel expenses, it is still very useful when a
detailed explanation or demonstration of product is required. Moreover, customers can therefore obtain a
relatively high degree of attention and sales advisors can address customers’ concern on the spot and can
use personal persuasion to make a sale. In relation to that, the owners will use door-to-door selling where
the business will send a sales executive to make product presentations at prospective customers’ homes or
businesses and over-the-counter selling where it will be conducted in retail and some wholesale locations
Market Analysis
1. Competitive Rivalry
Kimchi food products in North Cotabato is demand for a people especially millennials who keeps
up with the trend. Some Filipinos are influenced by Koreans especially their idols from clothing
fashion, language and foods and one of it is the famous kimchi. In terms of rivalry, kimchi
production is very abundant in every municipalities of North Cotabato. In Midsayap, there is this
famous fast-food restaurant which is the Chowking and they also sell Pork Chop Lauriat which is
178 pesos, Chinese Style Pork Chop with a cost of 105 pesos, Chao Fan that cost 90 pesos.The
famous restaurant which is Red Cap who also serves kimchi food and they also serve Pineapple
Fried Rice that cost 120-160 depends on servings, Chicken Top Rice that cost 80 pesos per
serving and Shrimp top rice that cost 80 pesos per serve. There is also in Kidapawan which is the
YUMiX Kimchiand they only sell Kimchi in different places in Kidapawan. In Libungan there is
Thabz Foodstuff who sells all kinds of foods for all occasions and other stuffs for daily needs and
aside from kimchi they also sell Kimchilog (Kimchi fried rice with sunny side up egg, beef
bulgogi and side dish of cucumber, tomato and pickled radish) for only 75 pesos, also, they sell
homemade Bibimbap for only 80 pesos and Spicy Pork Alamang for 100 pesos.FOUR
WINGSTER in J.P Laurel St. Kitacubong Alamada also sell Kimchi for 170 pesos (450g), they
also sell Chicken wings for 70-120 pesos. Lastly, W & B K-Grill at Pigcawayan the first K-Grill
in Pigcawayan and they offer a convenient way of tasting Korean’s food delivered at home, they
sell Kimchi for 100 pesos and they also sell Shin noodles for 85 pesos, Dakgangjeong for 130
The making of kimchi with fried rice requires a high-quality ingredient which is the vegetable. In
a Wikipedia, Vegetables are parts of plants that are consumed by humans or other animals as
food. The original meaning is still commonly used and is applied to plants collectively to refer to
all edible plant matter, including the flowers, fruits, stems, leaves, roots, and seeds. According to
Food and Nutrition Research Institute (FNRI), vegetables are valued not only for their
contribution of fiber to the diet, but also for their nutrient content. Green leafy and yellow
vegetables are rich in iron, vitamin A, vitamin C, calcium, and other micronutrients. The possible
supplier for the ingredients needed in making Kimchi with fried rice is Mr. Juan Lacuesta who
have a vegetable farm located at Pentil, Aleosan, North Cotabato because they offer deliveries for
their buyers of their vegetables. The prices for their vegetables depend on the kinds of the
vegetables you want to buy but the main ingredients of Kimchi which is the Cabbage costs 50
pesos per kilo.In case of the shortage of the vegetables in the farm of Mr. Lacuesta, the business
also have alternative suppliers which are the Villamor Store and Maricel Store with their
vegetables that cost of also 50 pesos per kilo and it is located at the Midsayap Public Market.
Cotabato, thus, there is no problem in looking for suppliers of our vegetables since they are
Kimchi food production is very abundant and therefore it makes the business to be common to
the people. The abundance of kimchi business products affects the quantity of customers that the
business will gain. Kimchi with fried rice can be afford by middle class customers who very fond
of this kind of product, however, being considerate, the business also offers a Kimchi with fried
with the quantity that even behind middle classes customers can still avail in a low price.
Moreover, customers have also the rights to decline or not to buy the product because they may
find it similar or common to some other businesses who offer kimchi. Thus, to be able to make
the business different and more distinct is making a Kimchi with a Filipino twist.In consideration
of that, it makes the business to be productive and saleable to the market. With that kind of twist,
it will attract customers more and can generate more profit because kimchi with fried rice is
somehow new to them.They can also enjoy eating kimchi with fried rice because ofits delectable
In case of having a new entrant with the same as Kimchi with fried rice, it will be considered to
be a threat to a business. However, the business will ensure to produce a high-quality product that
would prevail with other rising businesses. From the supplying of fresh vegetables, to the
fermentation in making kimchi and to packing the product into its container, the business aims to
be as its best quality. Also, the business will engage unique marketing strategies like using
attractive and well-designed containers for packaging, unique and presentablefood design and
giving a customer a value-oriented service. Therefore, when the new entrants will subsist, it
5. Threat of Substitute
The price of Kimchi's substitute is relatively similar in appearance, this implies that there could
be high threat of substitute to kimchi with fried rice. By this,the most relative food product that is
the same as Kimchi with fried rice is the Chao fan with a price of 90 pesos and it is available in
Chowking and any other food chain or restaurant in North Cotabato. Aside from it is relatively
similar to kimchi in terms of appearance, it is also famous and known by every Filipino because it
is one of the best sales in Chowking and widely known by Filipino especially Filipinos fond in
Chinese food. In case of customers will find another product to substitute with the Kimchi, there
is a replacement for the product which are the Alamang and Chili Oil. The business that sells
Alamang and Chili Oil is the Thabz Foodstuff and they sell the Alamang for a price of 100 pesos
per bottle and Chili Oil costs 120 pesos per bottle.However, the ingredients of Kimchi fried rice
are somehow easy to find and affordable. The production will not be costly. In addition, the
recipe of the product is easy to follow and remember. These factors will affect the price positively
Business Model
A. Value Chain
Primary Activities
● Inbound logistics. The raw materials bought by the Kimchi Fried Rice Business from
their own suppliers will be delivered at the warehouse of the business where the business
● Operations. The business will have activities and operations such as experimenting and
free tasting to help and to be able to covert or transform the inputs into the desired
product.
● Outbound Logistics. The finished product will be stored for the limited time to their
store room and will be delivered by their hired driver using their own delivery vehicle to
● Marketing and sales. The marketers and sale agents of the business will advertise their
product traditionally and in digital to make sure that the potential customers are aware of
the business product and also to help the business to gain more customers and profit.
● Service. The business will make sure to have the right customer service to ensure the
complaints of the unsatisfied customers will be taken care and solved in the right way.
Support Activities
business such as raw materials, supplies and other consumable item as well assets such as
business can be grouped into efforts to improve the product and the process.
research and customer servicing procedures are being used for the development of the
product business.
firing, training, development, and compensation of all types of personnel inside the
business.
● Firm Infrastructure. It is consists of number of activities inside the business including
general management, planning, finance, accounting, legal, government affairs and quality
management. These activities support the entire value chain of the business.
Source: https://www-business--to--you-com.cdn.ampproject.org/v/s/www.business-to-you.com/value-chain/amp/?
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Financial Statement
Conclusion
People
Organizational Structure
Business Staff
Packaging
The materials needed in packaging the kimchi are plastic container, paper with a print of a brand
Process
The process of how packaging will made are as follows:
Step 1: The plastic container will be clean thoroughly and the equipment that will be used in the process.
Step 2: Slowly putting some cook kimchi with fried rice in a clean plastic container and cover it.
Step 3: Seal it using an eco-friendly imperforated laser. Then ready to serve or deliver.