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DON HONORIO VENTURA STATE UNIVERSITY

1
CANDABA CAMPUS

College of Business Studies

CAKE-SHAKE FUSION

A BUSINESS PLAN PREPARATION

Presented to

The Faculty of Business Studies

of the Requirements for the Degree of

Don Honorio Ventura State University

In Partial Fulfillment

Of the Requirements for the Degree

Bachelor of Science in Entrepreneurship

By:

Angelina B. Malonzo

Lan Kay M. Sabat

Nicole P. Sibug

Vincent D. Silva

Camille B. Tenio
2

Table of Contents

Title Page #

Chapter 1: Description of the Business

I. Business Plan Introduction....................................................................................8

Proposed Name of the Business............................................................................11

Address of the Business........................................................................................11

Name of the Aspiring Entrepreneurs.....................................................................12

Funding Requirements .........................................................................................12

Business Logo and Tagline...................................................................................13

Mission..................................................................................................................14

Vision....................................................................................................................14

Objectives..............................................................................................................14

Chapter 2: Organizational and Management

Types of Business Organization...........................................................................15

Organization Structure..........................................................................................15

Job Description and Job Specification..................................................................16

Roles and Responsibilities....................................................................................17

Capitalization........................................................................................................17

Salaries and Wages...............................................................................................18

Chapter 3: Marketing Plan

Product..................................................................................................................19

Price......................................................................................................................24

Place......................................................................................................................32
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Promotion..............................................................................................................36

People....................................................................................................................38

Packaging..............................................................................................................39

Positioning............................................................................................................40

Survey Questionnaire............................................................................................41

Survey Results.......................................................................................................43

Competitors Analysis............................................................................................50

Product

Price

Place

Promotion

SWOT Analysis ...................................................................................................54

Strength

Weaknesses

Opportunities

Threats

PEST Analysis......................................................................................................57

Political

Economic

Social

Technological

FORTER’S Five forces.........................................................................................59

Threat of New Entrants


4

Bargaining Power of Supplier

Bargaining Power of Buyers

Threat of Substitute Products or Services

Rivalry Among Existing Competitors

Documentations....................................................................................................62
5

List of Tables

Table # Page #

1. Shows the names of the aspiring entrepreneurs and their shares to acquire

the 100% Capital........................................................................................................13

2. Shows the salary of each positions per hour and per day..........................................18

3. Shows the Rotation Schedule of the employees........................................................18

4. Shows the price of each flavor together with Cost Per Unit and profit of

Lemon Square Series for 16 oz and 12 oz cup. ........................................................24

5. Shows the price of each flavor together with Cost Per Unit and profit of

Fudgee Barr Series for 16 oz and 12 oz cup.............................................................25

6. Shows the raw materials and Cost Per Unit of Lemon Square Series for 16 oz........26

7. Shows the raw materials and Cost Per Unit of Lemon Square Series for 12 oz........27

8. Shows the raw materials and Cost Per Unit of Fudgee barr Series for 16 oz............28

9. Shows the raw materials and Cost Per Unit of Fudgee Barr Series for 12 oz...........29

....................................................................................................................................

10. . Shows the CPU, mark up (%) and profit of Lemon Square Series for (16oz)......... 30

11. Shows the CPU, mark up (%) and profit of Lemon Square Series for (12oz)...........30

12. Shows the CPU, mark up (%) and profit of Fudgee Barr Series for (16oz)..............31

13. Shows the CPU, mark up (%) and profit of Fudgee Barr Series for (12oz)..............31

14. Shows the competitive analysis of the business and its competitors.........................50

15. Shows the SWOT Analysis of the business and its competitors...............................54

16. Shows the Pest Analysis of the business....................................................................57


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List of Figures

Figures # Page #

1. Shows the official logo of the business and its tagline..............................................13

2. Shows the organizational structure of the business together

with their names and positions. .................................................................................15

3. Shows the products with different flavors.................................................................19

4. Shows the flavors that belong to the Lemon Square series.......................................20

5. Shows the flavors that belong to the Fudgee Barr series...........................................21

6. Shows the Geographical location of the business in San Carlos,

San Luis National High School..................................................................................33

7. Shows the actual picture of the location of the business

with the entrance of the school..................................................................................34

8. Shows the food cart layout of Cake-Shake Fusion together

with its estimated......................................................................................................35

9. Shows the food cart Actual picture of Cake-Shake Fusion Business........................35

10. Shows the Cake-Shake Fusion Facebook page..........................................................36

11. Shows the Cake-Shake Fusion Tiktok Account.........................................................37

12. Shows the sample coupons of the business................................................................38

13. . Shows the packaging of the business.......................................................................39

14. Shows the Age of the 150 respondents in San Carlos National HS...........................43

15. Shows the Sex of the 150 respondents in San Carlos National HS...........................43
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16. Shows the Occupation of the 150 respondents in San Carlos National HS...............44

17. Shows the students responds in Question 1...............................................................44

18. Shows the students responds in Question 2...............................................................45

19. Shows the students responds in Question 3...............................................................45

20. . Shows the students responds in Question 4.............................................................46

21. Shows the students responds in Question 5...............................................................46

22. Shows the students responds in Question 6...............................................................47

23. Shows the students responds in Question 7...............................................................47

24. Shows the students responds in Question 8...............................................................48

25. Shows the students responds in Question 9...............................................................48

26. Shows the students responds in Question 10.............................................................49

27. Shows the Poster’s Five Forces of the business.........................................................59

28. Shows the survey documentation of the aspiring Entrepreneurs...............................62


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Chapter 1

Description of the Business

I. Business Plan Introduction

Business plan is a documented strategy for a company that outlines its objectives and

plans for accomplishing goals. It includes a company's go-to-market strategy, financial

predictions, market research, corporate goals, and mission statement. The business plan may also

include key personnel who are responsible for meeting the goals, as well as a deadline. The

business plan is an important component of getting any firm off the ground. It's essential for

acquiring finance, documenting your company model, defining your financial projections, and

making your business idea into a reality (Beltis 2023). This Business Plan serves as the

foundation for all new businesses, including service businesses, manufacturing, merchandising,

and the most common is those related to the food industry.

Food is one of man's basic requirements. Without it, man will not survive. But when it

comes to consuming food, everyone has different references. Some people prefer their meal to be

spicy, sweet, sour, or salty because they think it will make them feel more-hungry. In order to

provide the need and wants of every individual, they create a product that suits their taste.

Nowadays, most of the generation likes sweet and refreshing drinks such as Milk tea,

Milkshakes, Fruit Teas, and other flavored drinks. Milkshakes are one of the popular drinks

especially during the summer season.

According to Hamilton Beach Commercial Blog, When the word "milkshake" first

popped up in 1885, it was used to describe an adult beverage made with whiskey and eggs.

However, by the turn of the 20th century, a milkshake had come to refer to a mixture of ice
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cream and syrup—chocolate, strawberry, or vanilla and it was originated in the United States.

Before electric blenders became widely accessible, milkshakes were made by hand with a

combination of milk, sugar, and flavorings, crushed ice, and other ingredients. Drink mixers

were first introduced by Hamilton Beach in 1911, and they soon gained popularity and others

restaurant added it in their menu.

Milkshakes are an iconic sweet treat that attracts to everyone of any age. There's no

denying the irresistible appeal of a cold, creamy milkshake, regardless of your preference for

traditional flavors like chocolate, vanilla or daring mixtures like cookies and cream or salted

caramel (Facts.Net). In addition, fresh fruits are also being used as a flavoring and its

occasionally combined with vegetables to enhance their flavor and provide additional health

benefits.

Experimenting with food grows increasingly popular in modern times, as individuals,

particularly youths, seek out unique foods that would fulfill their cravings. The aspiring

entrepreneur decide to start a business selling "MILKSHAKE" as their product. To stand out

from other milkshake shops, they created a unique milkshake by incorporating "Cake Bar"

flavors such as Lemon Square and Fudgee Bar as a main-ingredients. This proposal differs from

a typical Milkshake because Cake Bars are a type of pastry that everyone eats and buys as a

snack, a substitute for bread, and especially, when people crave sweets and cakes.

According to Mr. Yummy Cake, Cake bars are a type of American "bar cookie" with the

texture of a firm cake or softer than average cookie. They are made in a pan, baked in the oven,

and then sliced into rectangles or squares. In essence, cake bars are a delectable combination of
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your preferred cake and a moist, chewy brownie. All the advantages of the two options are

combined into one small square.

Most of the people avoid cakes and desserts for fear of becoming fat. Surprisingly, most research

and studies found that cakes are the best foods to use for medicinal purposes.

Here are the benefits of cake bars in the human body (Mr. Yummy Cake, 2022).

It's an excellent source of vitamins, protein, and calcium. The greatest sources of calcium can be

found in eggs, which are also the richest in milk, butter, protein, and chocolate,

It’s also gives strength. These delectable treats are an excellent source of protein because cakes are

made with milk and eggs. It is also well known that milk contains a lot of calcium, which improves the

function of the teeth and bones. These offer a plentiful supply of vitamins, which support and enhance the

body.

Help to beat Mood levels. According to research conducted by the Institute of Optimum Nutrition,

cakes are known to improve mood levels by releasing endorphins chemicals in the body, which promote

happiness while reducing anxiety and stress. Cake contains ingredients that have the ability to cause our

brains to release dopamine and serotonin. These neurotransmitters help us feel happy and regulate our

mood.

The partners created a Business named "Cake-Shake Fusion", this is a typical milkshake

created with ice and milk, but with a twist: instead of using artificial flavorings and fresh fruits,

we used our innovative minds to come up with the idea of using a “Cake Bar” to create another

distinct flavor. The main purpose of the business is to offer a delicious and refreshing drinks and

to create an customer satisfaction that is affordable and profitable.


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Proposed Name of the Business

Our business name is "Cake-Shake Fusion," and the word cake comes from Cake Bar,

which will be used as a flavor in our milkshake. Shake comes from the word Milkshake, which

means a thoroughly shaken or blended drink, and Fusion is the act of melting or blending things

together; it is the process of joining two or more things to form a single thing or entity.

As an aspiring entrepreneur, they created this business name to represent the product that

they offered in the market; this catchy name can attract more consumers who are curious why

there is a Cake phrase in the name of the business or product offered, And that is the goal behind

the company's name: to attract customers to try the product and to be renowned as the company

that produced and innovated a drink that was unique in the market.

Address of the Business

Business Location: San Carlos, San Luis National High School

Address: Purok 2 San Carlos, San Luis Pampanga

Landmark: Beside Alfamart San Carlos

San Carlos, San Luis National High School is one of the known schools in the town of

San Luis, Pampanga. It has an one-thousand, two hundred (1,200) students who came from

different municipalities such as Mexico, San Luis and San Simon, Pampanga. This school has six

sections (6) per grade level in Junior high and two (2) section per strand for Senior high. The

proponents chose to set up the business inside San Carlos, San Luis National High School

because most of their customers are students, teachers and residents of this barangay. Another

factor is they build the business here because it has limited competitors and it is accessible.
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Name of the Aspiring Entrepreneurs

The business is a partnership that owned by five (5) individuals that share their

knowledge and resources to build this business. The following are the names of the aspiring

entrepreneur:

Angelina B. Malonzo, is a person who has a strong sense of responsibility both at school

and outside of school. She is a creative and innovative individual who can contribute to the

business.

Lan Kay M. Sabat, is a strategic thinker who knows how to manage time. He also

possesses interpersonal skills, which can be used to attract potential customers.

Nicole P. Sibug, a person with wide leadership experience, she's an optimistic,

innovative, and flexible leader, and her ability to lead will assist the business in meeting its goals

and objectives and becoming successful.

Vincent D. Silva, is a person with sales and finance experience from their small business.

Vincent understands how to properly monitor the business's sales and expenses, which will

benefit the business by ensuring that all transactions oversee easily.

Camille B. Tenio, has experience as a factory worker, which can help the business track

all of its inventories. She can also analyze supply-related problems. These skills are beneficial to

the business success.

Funding Requirements

The partners have collectively agreed to combine their financial resources to meet the

estimated capital. The estimated capital of the business is Twenty-five thousand pesos (₱25 000)

that each partner must contribute 20% (₱5 000) to reach the initial capital. The partners'

estimated capital can be utilized to purchase tools and equipment, build a cart/stall, and purchase
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raw materials. These funds will be used efficiently and properly calculate expenses and

transactions throughout business operations.

Table 1. Shows the names of the aspiring entrepreneurs and their shares to acquire the 100%

Capital.

NAME OF THE ASPIRING ENTREPRENUER SHARES (₱25, 000)

Angelina B. Malonzo 20% (₱5,000)

Lan Kay M Sabat 20% (₱5,000)

Nicole P. Sibug 20% (₱5,000)

Vincent D. Silva 20% (₱5,000)

Camille B. Tenio 20% (₱5,000)

TOTAL: 100% (₱25,000)

Business Logo and Tagline Color Pattern – the


color green, light
Shape of Logo -
brown, black, and
represents the shape
of a Cake Bar dark brown represents
the colors of our
flavors.
Large cup with a
smile face - is a Square shapes with
symbol of our black lining– represent
product and
a shape of gulaman that
connects to our
tagline, which states included to the shake.
that when you taste
the cake-shake, you Circle Shaped Bits –
will surprise to its represents the small
deliciousness.
particles or bits of cake-
bar that are visible in the
cake-shake.
Figure 1. Shows the official logo of the business and its tagline.
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The tagline is "A sweet surprise in every cup". The meaning of this tagline is also related

to the uniqueness of the product that will be offer; it means that in every cup of shake that you

taste, there is a hint of surprise because it was new on the market, and you will be surprised by

every taste of the flavors that you did not expect to be so delicious.

MISSION

 Provide delicious, authentic, and unique shakes.

 Aim to be customers' favorite drink spot.

VISION

 Aiming to be Top Cake-Shake Business in Pampanga.

 Continuously develop new shake products and flavors.

Financial Objective: “Acquire the return on investment within 10 months of implementing our

business plan.”

Customer Objective: “To have excellent customer service experiences and satisfaction.”

Operational Objective: “Strengthen customer and supplier relationship.”


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Chapter 2

Organizational and Management

Type of Business Organization

Cake-Shake Fusion is a General Partnership Company owned by five members that

agreed to share assets, profits, financial liabilities, and responsibilities to build this business.

Description: In a general partnership, partners agree to accept personal responsibility for

potentially unlimited liability. It was also owned by two or more individuals. General

partnerships allow partners to structure their businesses as they see fit. This allows those partners

to have more direct control over operations.

Advantages: General partnerships are less expensive and easier to establish.

Partners may combine resources and share financial commitments.

Disadvantages: General partners are personally liable for all business debts and liabilities.

Potential conflicts in decision-making with partners.

Organizational Structure

Nicole P. Sibug
Team Leader

Angelina B. Lan Kay M. Vincent D. Silva Camille B. Tenio


Malonzo Sabat
Crew 3 Crew 4
Crew 1 Crew 2

Figure 2. Shows the organizational structure of the business together with their names and

positions.
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Job description/Job Specification

Team Laeder – Nicole P. Sibug

Job Description

A Team Leader is the one who is in charge of guiding, monitoring and leading an entire

group. They are responsible for motivating their teammates as well as inspiring positive

communication within them so that they can work together toward achieving goals.

Job Specification

 Are responsible for setting strategy and monitoring progress towards goals

 Responsible for decision making, coaching, developing the team's skill and managing

conflict

 Delegate tasks and set deadlines

 Encourage creativity and risk-taking

Crew – Crew 1 Angelina B. Malonzo

Crew 2 Lan Kay M. Sabat

Crew 3 Vincent D. Silva

Crew 4 Camille B. Tenio

Job Description

The Crew is responsible for presenting menus to customers and also responsible for

preparing the product. They take orders and answers questions on meal items. In between

customers, crew members perform cleaning duties, such as clearing tables and sanitizing food

preparation areas. In this role as crew, they will provide customer service, ensure food and drinks

are served with a smile and see to the overall satisfaction of the customers.
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Job Specification

 Prepare and serves food

 They have their responsibilities to the customers

 Serves a good service

 Cleaning the work area

Roles and Responsibilities

Team Leaders

 Manage the day-to-day operations of the business

 Monitor the team performance

 May help the crews in handling the customers such as preparations and assisting.

Crew

 A crew prepares and assemble the products to provide the best possible service and

experience for clients. They help to keep the kitchen organized and working efficiently.

They guarantee proper food handling, sanitation, and adherence to food storage

procedures.

 In charge of processing and accepting payments.

Capitalization

To meet the expected capital of the business, the partners shared ₱5,000 each from their

savings. As entrepreneur students, they had already planned how much money they will spend on

establishing the business, so they had no trouble acquiring or borrowing because since last year,

they started saving up to be prepared for the expenses.


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Wages and Salaries

According to the Labor Code of the Philippines, R.A. No. 6727 Section 4, Retail and

Service Establishment that has 10 employees below are exempted to wages increases.

As a small business owner that is just starting out, we decided to have a salary that based

on the minimum wage of Pampanga from Indeed. Indeed is a website for the jobseekers where

you can see the available jobs with salary, different wages from different cities and also the

average salary per province.

Table 2. Shows the salary of each positions per hour and per day.

Positions Salary (per hour) Salary (per day)

Team Leader ₱73.28 ₱586.24

Crew ₱39.17 ₱313.36

Table 3. Shows the Rotation Schedule of the employees.

Monday Tuesday Wednesday Thursday Friday

Team Leader Team Leader Crew 1 Crew 3 Crew 3

Crew 2 Crew 1 Crew 2 Crew 4 Crew 4

The table 3 and 4 shows the wages and salary and rotating schedule of the proponents.

The proponents decided to have a rotation schedule that every employee must have at least 2

working days per week. A team leader has a salary of ₱ 586.24 per day and in every week she

needs to work for at least 2 times a week at the end of the month she will have a salary of

₱4,689.92. The Crews has a salary of ₱313.36 per day and has a duty of 2 times a week by the

end of the month they will have a salary of ₱2,506.88 each.


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Chapter 3

Marketing Plan

Products

Figure 3. Shows the products with different flavors.

Philippines is one of the tropical countries, the summer season lasts longer than the rainy

season. As a result, many businesses have emerged that soothe the thirst, refresh us, and satisfy

the cravings by offering Halo-Halo, Flavored Drinks, Sodas, Milktea, and Milkshake. As a

result, the proponents came up with the idea of trying something new and innovative product,

such as refreshing drinks for the people and particularly students. The product is a type of

milkshake made with milk and ice, but because of proponent innovative skills, they came up

with the idea of using a Cake Bar to be the flavor of the milkshake, they used two well-known

brands that sell cake bars in that market which is Lemon Square and Fudgee Bar, and then they

used their different flavors to make the milkshake flavor. They made this milkshake not only to

satisfy the cravings, but also to provide many health benefits to the bodies, such as calcium, iron,

fiber, potassium, carbohydrates, and protein.


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The business produced two series of milkshakes. The first is called the Lemon Square

Series, and it includes flavors like Butterscotch Blend, Classic Brownies Blend, and Cheese Cake

Blend that were created by lemon square cake. The second one is the Fungee Barr Series, which

likewise comes in a variety of flavors, but the cake brand is Fudgee Bar, the flavors are Salted

Caramel Blend, Dark Chocolate Blend, and Macapuno Blend.

Lemon Square Series

Figure 4. Shows the flavors that belong to the Lemon Square series.

The figures show the various flavors of Cake-Shake Fusion from the Lemon Square

Series. All of this is made from the combinations of milk, ice, and lemon square cake. The first is

the Cheese Cake Blend, which is made from Cheese Cake. The second is the Butterscotch Blend,
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which is also made from Butterscotch flavor cake. The final one is the Classic Brownies Blend,

which is also made from Brownies flavor cake.

Fudgee Barr Series

Figure 5. Shows the flavors that belong to the Fudgee Barr series

The figures show the various flavors of Cake-Shake Fusion from the Fudgee Barr Series.

All of this is made from milk, ice, and fudge barr cake. The first is the Macapuno Blend, which

is made from Macapuno cake. The second is the Dark Chocolate Blend, which is also made from

Dark Chocolate flavor cake. The final one is the Salted Caramel Blend, which is also made from

Salted Caramel flavor cake.


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Product Name: Cake-Shake Fusion

Feature 1

Value to the costumer

Enjoy the delicious combination of rich milkshake goodness and creamy cake flavor,

which creates a delightful treat that not only fulfills your sweet tooth but also takes dessert to a

new level.

Feature 2

Functionality

Crafted with quality, our cake-flavored milkshake boasts a soft consistency and a perfect

balance of sweetness, ensuring a smooth and enjoyable sip. For those looking for a unique drink

experience, it can be a special treat or a fancy substitute for dessert.

Feature 3

Uniqueness and Relevance

In a sea of traditional options, this milkshake stands out due to its unique cake flavor

profile. Cake essence gives it a fun twist that makes it perfect for parties, special occasions, or

just anyone who wants to experience a creative and imaginative flavor.

Feature 4

Competitiveness
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The cake-flavored milkshake beats the competition not only with a delicious twist on

traditional flavors, but also by using quality ingredients and taking close attention to delicate

flavor variations. It will be a top option in the competitive beverage market due to its goal of

customer satisfaction and dedication to providing an outstanding taste experience.

Benefits of the Product

People today are very concerned about their health and the foods they eat. As we develop

this product, we consider the benefits that each individual may receive from consuming it.

Cake - boosts our brain power, as do milk and ice. Cake contains carbohydrates, which supply

glucose to our brain cells. Glucose is the brain's primary source of energy and is necessary for

proper functioning. Cake also contains eggs, milk, and nuts, which are rich in protein, calcium,

and omega-3 fatty acids, all of which are good for your brain.

Milk - can help strengthen your immune system. Nutrient-rich dairy milk is packed with

immune-boosting vitamins and nutrients like protein, vitamin D, vitamin A, zinc.

Ice - can lower your body temperature, reducing fatigue and increasing endurance. Drinking cold

drinks can help with digestion. Cold liquids can reduce inflammation in the digestive tract and

promote regular bowel movements.

Price
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Price is the amount of money or its equivalent for which something is purchased, sold, or

offered for sale. As an aspiring entrepreneur, the selling price of the product depends by what

customers are willing to pay, and it covers all of the costs of producing the product while

offering competitive prices.

To identify a business to be managed effectively, cost per unit, markup, and profit margin

calculations are essential. Cost per unit aids in calculating production costs and ensures the best

possible pricing to cover expenses. Markup determines the selling price and helps to generate

income. The percentage of profit to revenue is shown by the profit margin, which influences the

sustainability and expansion of the financial system. When combined, these metrics help

companies establish competitive pricing, improve their financial sustainability, and make wise

strategic choices.

Table 4. Shows the price of each flavor together with Cost Per Unit and profit of Lemon Square

Series for 16 oz and 12 oz cup.

Product or Flavor (16 oz) Price CPU Profit

Cheese Cake Blend ₱34.99 ₱25.25 ₱10.1

Butterscotch Blend ₱34.99 ₱25.25 ₱10.1

Classic Brownies Blend ₱34.99 ₱25.25 ₱10.1

Product or Flavor (12 oz) Price CPU Profit

Cheese Cake Blend ₱29.99 ₱22.93 ₱6.879

Butterscotch Blend ₱29.99 ₱22.93 ₱6.879

Classic Brownies Blend ₱29.99 ₱22.93 ₱6.879


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The table shows that the price of a 16 oz cup of Lemon Square Series is ₱34.99 with a

CPU of ₱25.25 and we will have a profit of ₱10.1 in every cup will be sold, while in a 12 oz cup

there is CPU of ₱22.93 with a price of ₱29.99 and a profit of ₱6.879 in every cup will be sold.

Table 5. Shows the price of each flavor together with Cost Per Unit and profit of Fudgee Barr

Series for 16 oz and 12 oz cup.

Product or Flavor (16 oz) Price CPU Profit

Macapuno Blend ₱34.99 ₱25.36 ₱10.144

Dark Chocolate Blend ₱34.99 ₱25.36 ₱10.144

Salted Caramel Blend ₱34.99 ₱25.36 ₱10.144

Product or Flavor (12 oz) Price CPU Profit

Macapuno Blend ₱29.99 ₱23.04 ₱6.912

Dark Chocolate Blend ₱29.99 ₱23.04 ₱6.912

Salted Caramel Blend ₱29.99 ₱23.04 ₱6.912

The table shows that the price of a 16 oz cup of Fudgee Barr Series is ₱34.99 with a CPU

of ₱25.36 and we will have a profit of ₱10.144 in every cup will be sold, while in a 12 oz cup

there is CPU of ₱23.04 with a price of ₱29.99 and a profit of ₱6.912 in every cup will be sold.

Table 6. Shows the raw materials and Cost Per Unit of Lemon Square Series for 16 oz.

Raw Materials (16 oz) Price CPU

1 pack of Lemon Square (10 pcs) ₱70.90 ₱70.90


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Condense milk ₱41.90 ₱69.8

Evaporated milk ₱31.40 ₱28.5

Ice ₱5 ₱25

Gulaman ₱12 ₱10

Cups with Lids (50pcs) ₱175 ₱35

Straw (100pcs) ₱80 ₱8

Ink for Stamp ̈́ ₱80 ₱5.3

Total: ₱252.5

The table shows the cost per unit and price of raw materials of a 16 oz cup of Lemon

Square Series can make 10 cups of milkshake. In a 1 pack of Lemon square it has a 10 pcs cakes

with a price of ₱70.90 and a CPU of 70.90, a condense milk with 390g has a price of ₱41.90 with

a CPU of ₱69.8 because in 390g condense we can make a 6 cups of milkshake which is ₱41.90

divided by 6 cups equals to 6.98 multiply by 10 cups equals to ₱69.8, an evaporated milk with a

price of ₱31.40 can make an 11 cups of milkshake which is ̈́₱31.40 divided by 11 cups equals to

2.85 multiply by 10 cups equals to ₱28.5, an ice with a price of ₱5 can make 2 cups of milkshake

so in ₱25 ice we can have a 10 cups milkshakes, a gulaman with a price of ₱12 can make a 12

cups of shakes so 12 divided by 12 equals to 1 multiply by 10 equals to ₱12, a cup with lids has a

price of ₱175 for 50pcs so 175 divided by 50 pcs equals to 3.5 multiply by 10 cups equals to ₱35

for its CPU, a straw has a price of ₱80 for 100pcs to get its CPU we can do this, 80 divided by

100pcs equals to 0.80 multiply by 10 cups equals to ₱8, lastly the ink for stamps has a price of 80

good for 150 stamps, so 80 divided by 150 is equal to 0.53 multiply by 10 equals to ₱5.3.

Table 7. Shows the raw materials and Cost Per Unit of Lemon Square Series for 12 oz.
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Raw Materials (12oz) Price CPU

1 pack of Lemon Square (10 pcs) ₱70.90 ₱70.90

Condense milk ₱41.90 ₱69.8

Evaporated milk ₱31.40 ₱14.3

Ice ₱5 ₱20

Gulaman ₱12 ₱8

Cups with Lids (50pcs) ₱165 ₱33

Straw (100pcs) ₱80 ₱8

Ink for Stamp ₱80 ₱5.3

Total: ₱229.3

The table shows the cost per unit and price of raw materials of a 12 oz cup of Lemon

Square Series can make 10 cups of milkshake. In a 1 pack of Lemon square it has a 10 pcs cakes

with a price of ₱70.90 and a CPU of 70.90, a condense milk with 390g has a price of ₱41.90 with

a CPU of ₱69.8 because in 390g condense we can make a 6 cups of milkshake which is ₱41.90

divided by 6 cups equals to 6.98 multiply by 10 cups equals to ₱69.8, an evaporated milk with a

price of ₱31.40 can make an 22 cups of milkshake which is ̈́₱31.40 divided by 22 cups equals to

1.43 multiply by 10 cups equals to ₱14.3, an ice with a price of ₱5 can make 2 ½ cups of

milkshake so in ₱20 ice we can have a 10 cups milkshakes, a gulaman with a price of ₱12 can

make a 15 cups of shakes so 12 divided by 15 equals to 0.80 multiply by 10 equals to ₱8, a cup

with lids has a price of ₱165 for 50pcs so 165 divided by 50 pcs equals to 3.3 multiply by 10

cups equals to ₱33 for its CPU, a straw has a price of ₱80 for 100pcs to get its CPU we can do

this, 80 divided by 100pcs equals to 0.80 multiply by 10 cups equals to ₱8, lastly the ink for
28

stamps has a price of 80 good for 150 stamps, so 80 divided by 150 is equal to 0.53 multiply by

10 equals to ₱5.3.

Table 8. Shows the raw materials and Cost Per Unit of Fudgee barr Series for 16 oz.

Raw Materials (16oz) Price CPU

1 pack of Fudgee Barr (10 pcs) ₱72 ₱72

Condense milk (390g) ₱41.90 ₱69.8

Evaporated milk (410ml) ₱31.40 ₱28.5

Ice ₱5 ₱25

Gulaman ₱12 ₱10

Cups with Lids (50pcs) ₱175 ₱35

Straw (100pcs) ₱80 ₱8

Ink for Stamp ̈́ ₱80 ₱5.3

Total: ₱253.6

The table shows the cost per unit and price of raw materials of a 16 oz cup of Fudgee

Barr Series can make 10 cups of milkshake. In a 1 pack of Lemon square it has a 10 pcs cakes

with a price of ₱72 and a CPU of 72, a condense milk with 390g has a price of ₱41.90 with a

CPU of ₱69.8 because in 390g condense we can make a 6 cups of milkshake which is ₱41.90

divided by 6 cups equals to 6.98 multiply by 10 cups equals to ₱69.8, an evaporated milk with a

price of ₱31.40 can make an 11 cups of milkshake which is ̈́₱31.40 divided by 11 cups equals to

2.85 multiply by 10 cups equals to ₱28.5, an ice with a price of ₱5 can make 2 cups of milkshake

so in ₱25 ice we can have a 10 cups milkshakes, a gulaman with a price of ₱12 can make a 12

cups of shakes so 12 divided by 12 equals to 1 multiply by 10 equals to ₱12, a cup with lids has a

price of ₱175 for 50pcs so 175 divided by 50 pcs equals to 3.5 multiply by 10 cups equals to ₱35
29

for its CPU, a straw has a price of ₱80 for 100pcs to get its CPU we can do this, 80 divided by

100pcs equals to 0.80 multiply by 10 cups equals to ₱8, lastly the ink for stamps has a price of 80

good for 150 stamps, so 80 divided by 150 is equal to 0.53 multiply by 10 equals to ₱5.3.

Table 9. Shows the raw materials and Cost Per Unit of Fudgee Barr Series for 12 oz.

Raw Materials (12oz) Price CPU

1 pack of Fudgee Barr 10 pcs) ₱72 ₱72

Condense milk ₱41.90 ₱69.8

Evaporated milk ₱31.40 ₱14.3

Ice ₱5 ₱20

Gulaman ₱12 ₱8

Cups with Lids (50pcs) ₱165 ₱33

Straw (100pcs) ₱80 ₱8

Ink for Stamp ̈́ ₱80 ₱5.3

Total: ₱230.4

The table shows the cost per unit and price of raw materials of a 12 oz cup of Fudgee

Barr can make 10 cups of milkshake. In a 1 pack of Lemon square it has a 10 pcs cakes with a

price of ₱72 and a CPU of 72, a condense milk with 390g has a price of ₱41.90 with a CPU of

₱69.8 because in 390g condense we can make a 6 cups of milkshake which is ₱41.90 divided by

6 cups equals to 6.98 multiply by 10 cups equals to ₱69.8, an evaporated milk with a price of

₱31.40 can make an 22 cups of milkshake which is ̈́₱31.40 divided by 22 cups equals to 1.43

multiply by 10 cups equals to ₱14.3, an ice with a price of ₱5 can make 2 ½ cups of milkshake

so in ₱20 ice we can have a 10 cups milkshakes, a gulaman with a price of ₱12 can make a 15

cups of shakes so 12 divided by 15 equals to 0.80 multiply by 10 equals to ₱8, a cup with lids
30

has a price of ₱165 for 50pcs so 165 divided by 50 pcs equals to 3.3 multiply by 10 cups equals

to ₱33 for its CPU, straw has a price of ₱80 for 100pcs to get its CPU we can do this, 80 divided

by 100pcs equals to 0.80 multiply by 10 cups equals to ₱8, lastly the ink for stamps has a price of

80 good for 150 stamps, so 80 divided by 150 is equal to 0.53 multiply by 10 equals to ₱5.3.

Table 10. Shows the CPU, mark up (%) and profit of Lemon Square Series for (16oz).

Product (16oz) CPU Mark-up Profit

Cheese Cake Blend ₱25.25 40% ₱10.1

Butterscotch Blend ₱25.25 40% ₱10.1

Classic Brownies Blend ₱25.25 40% ₱10.1

The table shows that the Lemon Square Series for 16 oz cup has a CPU of ₱25.25, a

mark-up of 40% and we will have a profit of ₱10.1 per cup.

Table 11. Shows the CPU, mark up (%) and profit of Lemon Square Series for (12oz).

Product (12oz) CPU Mark-up Profit

Cheese Cake Blend ₱22.93 30% ₱6.879

Butterscotch Blend ₱22.93 30% ₱6.879

Classic Brownies Blend ₱22.93 30% ₱6.879

The table shows that the Lemon Square Series for 12 oz cup has a CPU of ₱22.93, a

mark-up of 30% and we will have a profit of ₱6.879 per cup.

Table 12. Shows the CPU, mark up (%) and profit of Fudgee Barr Series for (16oz).

Product (16oz) CPU Mark-up Profit

Macapuno Blend ₱25.36 40% ₱10.144

Dark Chocolate Blend ₱25.36 40% ₱10.144


31

Salted Caramel Blend ₱25.36 40% ₱10.144

The table shows that the Fudgee Barr Series for 16 oz cup has a CPU of ₱25.36, a mark-

up of 40% and we will have a profit of ₱10.144 per cup.

Table 13. Shows the CPU, mark up (%) and profit of Fudgee Barr Series for (12oz).

Product (12oz) CPU Mark-up Profit

Macapuno Blend ₱23.04 30% ₱6.912

Dark Chocolate Blend ₱23.04 30% ₱6.912

Salted Caramel Blend ₱23.04 30% ₱6.912

The table shows that the Fudgee Barr Series for 12 oz cup has a CPU of ₱23.04, a mark-

up of 30% and we will have a profit of ₱6.912 per cup.


32

Pricing Strategy

Business needs to be aligned with the most effective pricing approach it can choose. The

Cake-Shake Fusion has made up its mind on the following strategy:

1. Market-oriented pricing as an approach may ensure that this milkshake business’s prices

are kept in line with current market conditions, such as competitors’ prices, consumer

demands and economic trends. This technique will enable us to set prices for our

milkshakes that are truly reflective of what they are worth on the market.

The Cake Shake Fusion uses Market-Oriented Pricing to ensure that the price of

the milkshake is competitive, such as the 39 pesos milktea that is now trendy in the

market.

2. Psychological pricing is about influencing customer perception concerning the price of

our shakes. For instance, setting a price just below a whole number makes our products

appear cheaper and thus more appealing to consumers.

Cake-Shake Fusion adopted this pricing technique to make it appealing and

convince consumers that they will get a better deal at the price they see.

Place

A good location is one of the keys to success in business. Visibility, accessibility, target

market reach and operating costs are affected by it. Strategic locations can attract customers,

enhance competitiveness and stimulate all-round business development. The Cake-Shake Fusion

has chosen to establish itself within a school setting. Choosing a spot in a school comes with

several benefits including easy access to your target audience, built-in customers as well as

possible collaborations between the business and the school administration.


33

Geographical Location of the Business

Figure 6. Shows the Geographical location of the business in San Carlos, San Luis National

High School.
34

Figure 7. Shows the actual picture of the location of the business with the entrance of the school.

The Cake-Shake Fusion chose this location because it is close to the school's entrance and

exit, as well as the student drop-off area, so more people will see our business and attract them to

buy.

Layout of the Food Cart


35

Figure 8. Shows the food cart layout of Cake-Shake Fusion together with its estimated

measurement of 5ft by 6ft.

Actual Picture of the Food Cart

Figure 9. Shows the food cart Actual picture of Cake-Shake Fusion Business.
36

The food cart is convenient for customers and to the business. It has a beige and brown

color scheme representing the different flavors will offer, it can be also appealing to Generation

Z who are our target market today. The business structure is common with a “L” shaped table

where they can prepare items, drawers for keeping things and wheels on it for easy moving.

Promotion

Promotions are vital in business due to various reasons such as increased product

visibility, attraction of new customers and encouraging repeat purchases. Additionally,

promotions are able to help a brand differentiate itself from competitors, increase sales during

economic hard times and build loyalty among consumers. Effective promotions also lead to

positive word-of-mouth thereby ensuring long-term success.

The Cake-Shake Fusion promotion strategy are the following:

 Digital Marketing – Social Media

Figure 10. Shows the Cake-Shake Fusion Facebook page.


37

Figure 11. Shows the Cake-Shake Fusion Tiktok Account

Digital marketing is a broad platform that can assist businesses in promoting and

introducing themselves to as many customers as possible. Cake-Shake Fusion created a tiktok

account and a Facebook page to further expand the business's engagement. On the Facebook

Page, they can post daily and also post updates about the business, and they can also raise

questions like private messaging to cater them. On the Tiktok Account, they can create different

content to promote the products so that they are known not only in school but also throughout

Pampanga. The business also offers an Online orders with a delivery charge for those people

who are not covered by our target location.

 Traditional Marketing

Word of Mouth

Aside from digital marketing, one of the most effective ways to market the product is

through word of mouth. This is an effective way to increase sales, increase brand recognition,
38

and build customer loyalty. They can also engage with customers directly using this traditional

marketing

Coupons

The business will offer coupons to customers who will purchase. This is also an effective

way to encourage repeat purchases from customers. The coupons have a design of 10 circles with

a picture of the flavors of the products, the first 6 circles requiring them to taste all of the flavors

in order to sign it and the remaining four circles allowing them to choose which flavors they

want to purchase. When they fill out the coupons, they will get 12 oz free of their chosen flavor.

In this way, the proponents can promote and recognize not only their favorite flavors, but also

those they have not yet tried.

Figure 12. Shows the sample coupons of the business.

People

These are the persons or factors who are directly involved in the business.

Owners: They provide guidance, establish objectives and invest money. The Cake-Shake Fusion

includes five owners who all contribute their knowledge and abilities to the success of their firm.
39

They will also be the employees, producing and promoting their product for day-to-day

operations.

Employees: They perform tasks, contribute skills and keep the business operations.

Suppliers: These people supply what is needed for production in form of goods or services. The

supplier of the Business is RCS Grocery from Sta. Ana Pampanga for their ingredients, SG

Packaging Solution in Sta. Ana Pampanga, supplies cups and straws, and the business's ice

suppliers are Danuman from Sto. Thomas, San Luis Pampanga.

Target Market: It represents the customer base that a business intends to serve or satisfy. The

target markets of the Cake-Shake Fusion are the students of San Carlos and San Luis National

High School.

Packaging

Figure 13. Shows the packaging of the business.

Packaging in the milkshake business has several uses, not only does it protect the product

while being transported or stored, but it also adds value to branding and marketing efforts. The

attractive yet practical packaging can draw customers to the product and communicate its

characteristics. It likewise helps in preserving the product’s freshness thereby adding to customer
40

satisfaction. Packaging in milkshake business is an essential component of total brand

experience.

Cake-Shake Fusion will use plastic cups with lids and straws as their packaging because

these containers hold their milkshakes well; they use also a ink stamps to put their logo to the

cup for them to distinguish our business to others.

Positioning

Positioning refers to the place your product or service occupies in the minds of your

competitors. It involves developing a unique image and value. Good positioning, on the other

hand, answers why your offer is better from a customer’s points of view, it help build an

impactful brand perception that separates you from rivals.

The Cake-Shake Fusion will position the business within school premises for many

different reasons. Firstly, it provides an easy access to specific audience which includes students,

teachers and parents. This can increase visibility and improve chances of attracting clients within

the school community. Furthermore, being inside the school compound can create a familiar and

convenient environment. Lastly, its proximity allows for possible collaborations such as events

or giving special offers to students and staff thereby further enhancing localized connections

with this school.


41

Survey Questionnaire

We are the Entrepreneurs Students of DHVSU Candaba-Campus and we will be conducting a Business

Plan Preparation; our preparation includes conducting a survey to our target markets. In accordance of

RA 10173 or the Data Privacy Act of 2012, all personal and/or sensitive information solicited and

disclosed from this survey shall be only used for the study alone.

Instruction: Please respond to following questions by putting check (√ ) inside the box.

Name (Optional):
Age:
Sex:
Occupation:

1. Do you drink shake?


Yes
No

2. How often you drink shake?


One time a week
Two times a week
Three times a week
Everyday
Never
Others: ______

3. Do you like innovative product?


Yes
No

4. How much is your allowance per day?


₱30-50

₱60-80

₱90-100

Others:

5. Do you eat Lemon Square?


Yes
No
42

6. What is your top 3 favorite flavors of Lemon Square Products?


Cheese Cake
Classic Brownies
Butterscotch
Cookies N Cream
Chocolate

7. Do you eat Fudgee Barr products?


Yes
No

8. What is your top 3 favorite flavors in Fudgee Barr Products?


Macapuno
Salted Caramel
Dark Chocolate
Milk Custard
Mocha

9. What starting price do you prefer in a drink?


₱ 30

₱ 35

₱ 40

Others: _______

10. If we sell shake flavored with Lemon square and Fudge barr cakes, would you buy?
Yes
No
43

Survey Result for Location 1 (San Carlos, San Luis NHS)

Age
3%
1%
8% 14 y/o
15 y/o
26%
16 y/o
22% 17 ylo
18 ylo
19 y/o

40%

Figure 14. Shows the Age of the 150 respondents in San Carlos National HS.

Among 150 respondents, 1% of the respondents is 19 y/o, 18 y/o has a 3%, 26% for the

age of 17 y/o, 40% of age is 16 y/o, 15 y/o has a 22% and lastly the 14 y/o has a 8%.

Sex

39%
Femal
Male
61%

Figure 15. Shows the Sex of the 150 respondents in San Carlos National HS.

Among 150 respondents, 61% of the population is female and 39% is male.
44

Occupation:

Students

100%

Figure 16. Shows the Occupation of the 150 respondents in San Carlos National HS.

All of the 150 respondents in San Carlos NHS, 100 % are students only and they do not

have part time job.

Q1. Do you drink shake?


1%

Yes
No

99%

Figure 17. Shows the students responds in Question 1.

Among 150 respondents, 99% of students are drinking shake and only 1% is not.
45

Q2. How often you drink shake?


1
3 %
%
6%
One time a week
Two times a week
16%
39%
Three times a week
Everyday
Never
Others

35%

Figure 18. Shows the students responds in Question 2.

Among 150 students, 39% of the students are drinking shake one time a week, 35% are

drinking shake two times a week, while 16% are drinking shake three times a week, 3% of the

students are drinking shake every day, Only 1% is never to drink a shake, And Last 6% of

students are drinking shake sometimes, occasionally, it depends, when summer, and two-three

times a month.

Q3. Do you like innovative


product?

5%

Yes
No

95%

Figure 19. Shows the students responds in Question 3.

Among 150 respondents, 95% of the students like innovative product while 5% of the

students answered No.


46

Q4. How much is your al-


lowance per day?

7%
30-50
31% 60-80
90-100
Others
40%

22%

Figure 20. Shows the students responds in Question 4.

Among 150 respondents, 31% of their allowance per day is ₱30-50, 22% has a

allowance of ₱60-80, while 40% of them has allowance of ₱90-100, and lastly others students

has an allowance of ₱120, ₱150, ₱200, ₱250, ₱300 and ₱500.

Q5. Do you eat Lemon Square


products?

Yes
No

100%

Figure 21. Shows the students responds in Question 5.

Among 150 respondents, 100% of students are eating Lemon Square products.
47

Q6. What is your top 3 favorite


flavors of Lemon Square
products?

Cheese Cake
21%
Classic Brownies
30%
Butterscotch
Cookies & Cream
Chocolate

19%

22%
8%

Figure 22. Shows the students responds in Question 6.

Among 150 students, 30% of the top 3 favorite flavors of students is Cheese Cake, 22%

are Classic brownies, 21% for Chocolate, 19% for Cookies & Cream and lastly 8% for

Butterscotch.

Q7. Do you eat Fudgee Barr


Products?

Yes
No

100%

Figure 23. Shows the students responds in Question 7.

Among 150 students, 100% of students are eating Fudgee Barr products.
48

Q8. What is your top 3 favorite


flavors in Fudgee Barr products?

20% 22% Macapuno


Salted Caramel
Dark Chocolate
Milk Custard
11% Mocha

19%

28%

Figure 24. Shows the students responds in Question 8.

Among 150 students, 28% of the top 3 favorite flavors in Fudgee Barr products is Dark

Chocolate, 22% are Macapuno, 20% for Mocha, then 19% for Salted Caramel and 11% for Milk

Custard.
Q9. What starting price do you prefer in
a drinks?
2%

18%
30
35
40
Oth
ers
15%

65%

Figure 25. Shows the students responds in Question 9.


49

Among 150 students, 65% preferred price for their drinks is ₱30, 18% prefer ₱40, while

15% prefer ₱40 and lastly 2% preferred others like ₱50, ₱60, ₱150.

Q10. If we sell shake flavored with


Lemon square and Fudgee Barr cakes,
would you buy?

5%
Yes
No

95%

Figure 26. Shows the students responds in Question 10.

Among 150 Respondents, 95% of students will buy to the business when they sell cake-

shake fusion and 5% will not.


50

Swot interpretation
The SWOT analysis of our company and its indirect competitors is shown in the tables.

In terms of strength, Cake-Shake Fusion has a significant advantage over its rivals because, as

we all know, milk tea and coffee are common food business in the Philippines, and our business

is unique since our product is an innovation that comes from the owners' creative minds. When it

comes to its versatility, the Cake-Shake Fusion is better suited because not everyone enjoys both

milk tea and coffee, such as children who can occasionally drink tea but not coffee. The product

we produce is versatile enough to use it as a dessert for any kind of occasion. Cake-Shake Fusion

gets a cost and location advantage because they are more aware of its pricing strategy and how to

stay competitive in the market. Its location is also competitive in that it allows them to sell

directly to students.

One weakness of our business is its perishability, which we can address by not

overproducing. We additionally remind customers to consume the shakes right away, or to store

them in the refrigerator to keep them fresh. Another weakness is the cost of ingredients, which

sets us apart from other businesses. Because our cake-shake fusion is made with fresh

ingredients, our costs are higher than theirs. However, we can turn these weaknesses into

strengths because, if they have direct suppliers, we can find ours as well to lessen our expenses.

Also the limitation of storage space is weakness of the business since the lay-out of the stall is

open space and we can’t do overstocking but we can ask for the room at the back of the stall so

they can put some stock on that space.

With regard to Opportunities, all the business has the chance to expand their businesses

and engage with social media platforms, but Cake-Shake Fusion has an advantage in working

with the local schools. We can give percentage off or discounts every time they have events and
51

set up pop-up stalls at other schools' events to boost sales and to be known not only in one school

but in Pampanga.

The worst part of being in business is facing threats, especially ones that you can't handle

like rising costs of ingredients, which will drive up costs. All of our competitors will face similar

threats, particularly from shifting consumer preferences, but as aspiring entrepreneurs, we'll

overcome them by launching new product variations and taking inspiration from their feedback

and suggestions since they are our consumers and our business's survival depends on them. As

for health trends, we can address them by providing sugar levels of sweetness so that customers

can enjoy our goods without compromising their health.


52

PEST ANALYSIS

Table 16. Shows the Pest Analysis of the business.

POLITICAL ECONOMIC SOCIAL TECHNOLOGICAL

 Government  Economic  Health  Te chnology


Regualtions Growth consiousness
advancement
 Complying  Inflation Rate  Feedback

Requirements  Cultural

Barriers

One tool for strategic management that can assist companies in identifying external

factors that will impact their operations is Pest Analysis. Here’s the following factors:

1. Political Aspects

One of the things that can impact a business is government regulations and compliance.

As aspiring owners, we will comply by all permits that the DTI and local governments demand.

2. Economic Factors

When the economy grows and more people are employed and the unemployment rate

decreases, it affects businesses by giving us more purchasing power to purchase necessities and

wants. As a result, business sales increase during periods of growth in the economy, and the rate

of inflation is another factor, but we may address it by finding less expensive ingredients or

substitute goods.
53

3. Social factors

We are all aware that people are becoming more health conscious, but we can still offer a

sugar or sweetness level. Customer feedback and cultural beliefs have an impact as well, because

other customers cannot eat non-vegan products because they are health conscious and do not

want to contribute to animal cruelty, so we will not encourage them to buy because milk is not

vegan and customers are our top priority. Feedback is an effective way for us to improve and

identify areas where we still need to improve, as well as areas where we do not need to improve

but should continue.

4. Technological factors

People already include technology into their lives, so even though our business does not

require upgraded technology because we are just getting started, we can still use other

technologies to make it more effective and efficient business.


54

POSTER’S FIVE FORCES

Figure 27. Shows the Poster’s Five Forces of the business.

RIVALRY AMONG THREAT OF NEW


EXISTING THREAT OF NEW ENTRANTS:
COMPETITORS:
ENTRANTS  Barriers to entry
 Number of  Capital requirements
competitors  Brand loyalty
 Quality Differences  Switching costs
 Brand Loyalty
 Switching costs

RIVALRY
AMONG
BARGAINING BARGAINING
EXISTING POWER OF
POWER OF
COMPETITORS BUYERS
SUPPLIERS

BARGAINING POWER
BARGAINING POWER OF BUYERS:
OF SUPPLIERS:
 Number of
 Number and size of competitors
suppliers THREAT OF  Size of each
 Uniqueness of each
SUBSTITUTE customer order
supplier product  Differences between
PRODUCTS competitors
THREAT OF
 Buyers ability to
SUBSTITUTE
substitute
PRODUCTS:

 Number of substitute
products available
 Buyer propensity to
substitute
55

The figures show the poster’s five forces of the business, first is Rivalry among existing

competitors is influenced by factors such as the number of competitors, quality differences,

brand loyalty, and switching costs. The Cake-Shake Fusion has an advantage among its existing

competitors. The first is in the number of competitors because the only competitors of the

business were indirect competitors because those competitors are already located in its target

location because they do not offer the same drinks. In terms of quality differences, Cake-Shake

Fusion is more ahead because other businesses use ready mix powder, so their products are not

quality while our business uses fresh ingredients. We can gain customer loyalty by offering

coupons to encourage them to buy from us again in order to receive the free drinks at the end of

the coupons. We can also create more innovative ways based on customer suggestions. In terms

of switching costs, it has an impact on the business, but the pricing strategy that the business will

use will be consistent with the pricing strategy to catch up with markets or their competitors

pricing

Second, Threat of New Entrants, Cake-Shake Fusion is a strong brand, so they

already predicted the threats that can be acquired, especially in new entry businesses. The

advantage of our business is that it is located right inside the schools, which means that once

students enter the school gate, they are not allowed to leave until it is time to go home, so more

students will buy from us.

Next, Bargaining power of suppliers, such as the number and size of suppliers and the

uniqueness of each product. The Cake-Shake Fusion has an advantage over the suppliers because

their ingredients are found locally, like in the markets, but it has an impact on the supplier size

because the more the suppliers were big, the more the supplies were less cost, it must be
56

advantageous also for the business to look for suppliers who are already have the supplies they

are looking for.

Fourth, Threats of Substitute Products, even though the company does not have direct

competitors, customers have the option to substitute the products because there are numerous

substitute products available on the market; however, because of the unique flavors offered,

customers can differentiate the company from the others, causing them to return and purchase

our products.

Finally, buyer bargaining power has an impact on the business because they have the

ability to substitute among existing competitors, but due to the business's unique offerings and

combinations, their purchasing power may be reduced.


57

Survey Documentation

Figures 28. Shows the survey documentation of the aspiring Entrepreneurs.

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