MARKETING PLAN FOR KAPEHAN NI JUAN

Reina Leah Retita

Chapter 1. Introduction, Goals and Objectives

Background of your business

The one of the foremost aims of the Balay ni Tan Juan Community Museum is to create
educational presence as well as to preserve the culture that has made Bago City to be known as
the Home of Historical and Natural Treasures. One of the most basic of these developmental
thrusts is creating a venue wherein people are welcomed to congregate and share stories while
being reminded of what history is all about. In our communities, what better way to share
stories than through a “kapehan”.
Kapehan ni Juan is proposed to be an enclosed area to be located outside of the Balay ni
Tan Juan itself but within its gates, making the museum as part of the ambiance. It would be a
“theme” café that will serve as reminder of the man, Tan Juan Araneta, and the his contribution
to the history of Negros.
Kapehan ni Juan will be a specialized or themed café that will use snippets of General
Juan Araneta’s history in the delivery of service. It is proposed to be located beside the
existing guard house all the way towards the currently make-shift hut; this area will serve
as the cashier’s counter and the kitchen. The wall, leading towards counter will be
developed to look like a sugarcane field with foldable and retractable tables for the
customers. Other tables, designed to look like wooden crates will be strategically placed on
what is currently the parking space. A designed covering will be placed on top of the area
but should go with the garden design and not be an eye sore and ruin the aesthetic aspect
of the whole Balay ni Tan Juan. A native duyan will be placed at the center of the small
cluster of trees near the counter where a bookshelf will also be placed to encourage the
customers to stay.

Eventually, a glassed in, air-conditioned VIP room will be introduced for guests.

Business Vision and Mission

VISION
 Kapehan ni Juan as a business not only envisions to be the leading snack house and café

that will offer affordable food options to Bagonhons but also as a means to promote the culture

and heritage that is distinctly Bagonhon by offering products that will remind and encourage

the guests and customers to support Bago.

MISSION

The business’s mission is to provide a place to enjoy coffee and other drinks coupled

with delectable food while having a break from the office work or while reviewing and doing

school related works. It also aims to become a place to go to for leasure or a place for students

and young professionals to unwind after work, or destress.

Marketing Goals

 To develop part of the Balay ni Tan Juan locale into a specialized café while
maintaining the look, feel and ambiance of its historical significance.
 To provide a venue for students, coffee enthusiasts and tourists as well as
members of the community to share stories as they immerse in the history of
the Balay ni Tan Juan Community Museum.
 To provide for a place for refreshment that will also serve as a reminder of
what Bago City truly is.
 To create job opportunities for those needed in the operation of the café.

Marketing Objectives

o To grab a niche of the market of coffee drinkers from all social levels by offering

affordable coffee. Having at least an average customer of 55 per day during the

first year of operation in order to meet the projected ROI within 18-24 months of

initial operations.
 o To increase sales by at least 15% the first year while gradually decreasing the

marketing expenses, 20% the next year and 30% increase from this year’s figures

after 3 years of the implementation of the Marketing Plan.

o To increase the influx of visitors to the Balay ni Tan Juan Museum by 20% in the

next 3 years through creating the interest of the public to the culture and history

of the historical landmark.

o To increase the social media engagement of the public through the official

website and through interaction with the followers. Increasing the number of

followers and analytics by 50% in the next 6 months after opening.

Chapter 2: Target Market and Market Segmentation

Attributes Primary Market Secondary Market Tertiary Market

Students/Tricycle Employees of the City Tourists
Drivers/Residents Hall and other offices
in Bago City
Location Bago City Bago City Bago City

Population Size 28,000 composed of 8,000

10% of the working
class population of Bago
City including the
targeted students of
about 5,000 from
different schools in the
area
Age group 16 – 55 24-65 Various age ranges
Occupation Students, middle-class Cityhall employees, Varying
office workers, tricycle DepEd staff and
drivers faculty
Hobbies School works, Break Work breaks, to To enrich
from work and leisure entertain guests, a themselves in the
place to bring visitors culture and heritage
to of Bago City
Concerns and Have a venue to relax Have a venue to relax
Priorities and take a break, school
works and to read
How often do they Daily Daily Occasionally
use your
product/service?
Chapter 3: Market and Situational Analysis

 Economic Environment

Bago City is known as the “Home of historical and natural treasures”, owing to its

contribution in the colourful history of the province of Negros Occidental and country, and
 its beautiful scenery and abundance in flora and fauna making it a good eco-

tourism destination.

In the last several decades, there has been a lot of changes in the economic landscape within

Bago City. From the former thrust of the city government several years ago of catering to

mainly local business owners to thrive within the economic scene of Bago, a lot has changes in

the last two (2) seats of governance who has taken a more open stance in opening business

opportunities from those outside.

Recognizing the potentials in terms of boosting the local economy, the top official of the City
Government of Bago is eyeing to develop three of their sites as tourism enterprise zones (TEZ).

Currently the City is planning to "fuse" Buenos Aires Mountain Resort and Rafael M. Salas Park
and Nature Center, all in Barangay Ilijan, making it one zone for tourism enterprise
development.

These are on top of the 15-hectare portion of Bantayan Park at Barangay Poblacion, which is
being positioned to become the city's new commercial growth area.

The designation of TEZs is under the Tourism Investment and Enterprise Zone Authority (Tieza).

For private TEZs, or areas with private individual owners, the owners are the ones presenting
their development plan. The Tieza then check whether it is feasible and sustainable.

For flagship TEZs, meanwhile, the agency is doing the master development plan for the areas
identified through an inventory created by the DOT and local government units (LGUs).

The Department of Tourism in Region 6 earlier said the development of more TEZs in Negros
Occidental will contribute to improving the province’s economy mainly through the creation of
more employment opportunities.

For Bago City, the local government has earlier opened the development of Bantayan Park to
interested investors.

The idea is for the investor to develop the whole 15 hectares, and then a portion of it will be
granted to them for commercial operation.

The development with an indicative cost of at least P1 billion includes commercial and open
 spaces, playground, permanent structures for 24 barangay booths, and small fish landing port
and market, among others.

Other than those stated above, the Balay ni Tan Juan Museum is a perfect spot to introduce a

new way for experiencing the coffeeshop feel that has been growing the all areas of the world.

In fact, a recent study by the students of Bago City College has concluded that students are

more often attracted to coffee shops rather than sing-along bars or drinking spots which were

more popular before.

After consultation with the Tourism Council of the City, the Legal Office and the other related

agencies, the planned and proposed Kapehan is well under way to become a go to spot in Bago

City’s cultural and tourism map

 Social Environment
(within your

Strength Weakness
control and

existing)
must be
Internal

 
(beyond your

Opportunity Threat
External

control)


 Kapehan ni Juan

Balay ni Tan Juan Community Museum

City of Bago, Negros Occidental

INITIAL CAPITAL OUTLAY:

 Equipment
o 6 cu ft. Refrigerator 12,000.00
o Delongi ECP 35.21 Pump Espresso 15,000.00
o Nasco Display Fridge 190 LTR 10,000.00

40,000.00

 Repairs and Construction

o Counter
o Roofing
o Tables and chairs
o Electrical
o Marketing materials
o Finishing & painting of walls 80,000.00

 Operational Needs and Supplies

o Stocks Inventory 10,000.00
o Cups/Utensils/Plates/Saucers 10,000.00
o Napkins, Garbage bags/cleaning
and maintenance materials/Takeout

materials 5,000.00

25,000.00

 Contingency Buffer Fund 35,000.00

TOTAL INITIAL CAPITAL OUTLAY PHP 180,000.00

Monthly Operational Expenses:

Salaries and Wages

 Barista @ 300.00 / day 9,000.00 monthly

 Server @ 250.00 / day 7,500.00 monthly

TOTAL 16,500.00 monthly

Rent

 6 x 32 square meters @ 50/annum 800.00 monthly

Marketing and promotions

 Wifi 2,200.00 monthly

 Social Media 3,000.00 monthly

TOTAL 6,000.00 monthly

MONTLY OPERATIONAL EXPENSES TOTAL PHP 22,500.00 monthly

The café needs a total of Php 32,500.00 a month to have 100% ROI in 18 months. That is:

Total Initial Capital Outlay / 18 months = 10,000.00

 Salaries and Wages = 16,500.00

Marketing and Promotions = 6,000.00

Total 32,500.00

The café needs at least a daily sales of Php 1,083.33 . With a minimum spending of Php 20.00 for each
customer, it is assumed that there should be at least 55 customers per day to break even.

Assumption:

((55 customers x 20.00) x 30 days = 33,000.00

Using marketing, promotions and word of mouth generated hype, the café is expecting at least a 20%
increase in customer number for each passing year. Using the conservative targets for the initial year of
55 customers a day, the attached table shows the business growth in the next 5 years. Another server
should be added on the 3rd year and 7,000.00 deducted to total expenses to reflect ROI after 18 – 24
months of operation.

CONSERVATIVE
NUMBER OF CLIENTS
(with targeted
TIME FRAME SALES EXPENSES Net Income
increase of a
conservative 20%
yearly)

55 daily 33,000 a month 32,500.00 a month 500 a month

Year 1
6,000 annually

66 daily 39,600 a month 32,500.00 a month 7,000 monthly

Year 2
84,000 annually

79 daily 47,400 a month 32,500.00 a month 14,900 monthly

Year 3 178,800
annually
 *additional 1 server
**decrease of 7,000.00
in Capital Investment
Expenses to reflect ROI

95 daily 57,000 a month 32,500.00 a month 24,500 a month

Year 4 294,000
annually

114 daily 68,400 a month 32,500.00 a month 35,900 a month

Year 5 430,800
annually

*Figures reflect only sales of coffee at an average sale of 20.00 per customer. This is a very conservative
and attainable figure.