CENTRAL PHILIPPINES STATE UNIVERSITY

San Carlos Campus

COLLEGE OF AGRICULTURE AND FORESTRY

SECTION A

Erico’s corn café

Abello, Haryl M. Abasolo, Mary Jane S.

Acogido, Troy D. Alang, Baby Nurlaika O.
Alesna, Charlie A. Alinton, Jessamae M.
Bayotas, Christ Jhon S. Alquizar, Rigielyn A.
Benigay, Erico G. Aranez, Charina
Bernas, Mark S. Bacongco, Marilyn B.
Biabado Jr. Rene E. Bagacay, Shaina Marie A.
Biating, Demar M. Bayaton, Roselyn V.
Caballero, Bench Marc Caballero, Cherry Mae L.
Diana, Kyle Cedie R. Caballero, Rica Mae L.
Escario, Louie V. Caballero, Ulyrose R.
Ernan, Joesemar Cabanog, Jessalyn C.
Caparida, Kemberly J.
Dealagdon, Rosemarie J.
SUBMITTED T0
MARISAL T. HERNANDEZ
Instructor

DECEMBER 15,2022
EXECUTIVE SUMMARY
The Erico’s corn café come up with an idea of introducing alternative drinks that
will let people enjoy drinking coffee without worrying too much caffeine intake, by making
a coffee that is made from native corn. The business started as sole proprietorship that
sells and offers a healthy coffee and affordable that is suitable to the taste of the Filipino.
This business adds additives/condiments suchlike corn coffee with malunggay, corn
coffee with mangosteen, and corn coffee with ginger. The purpose of this innovation is to
provide desirable flavor of the customers in order to ensure their satisfaction. The
business is a new distributor of corn coffee located at St. Tunga Brgy. Palampas San
Carlos City.

All residents in San Carlos City are the target customers and the corn coffee
resellers in Jose V. Valmayor public market. The Erico’s corn coffee aimed to become
the foremost corn coffee distributor in the area and create an atmosphere with decoration
to create expression and promote creative process. Hence, Erico’s corn coffee will
provide customers the finest quality beverage in most efficient time, operates and grows
profitable rate through sound economic decision.

The starting capital of Erico’s corn café is 500,000 to care of the possible operating
expenses including transportations, packaging, and the raw materials needed. Business
produces 500 pouches of corn coffee a month in order to cater and sustain the market
demand, the price per pouch is 75 pesos that is affordable to the customers. Erico’s corn
café have 5 resellers as starting of the business and have 2 competitors, one for corn
coffee supplier and one for pure/native coffee supplier. Erico’s corn café will posted on
social media like fb page, YouTube etc. to encourage new customers to purchase the
product. For them to have an idea what would be the benefits if they purchased the corn
coffee product. Also, through social media they are aware in what place and what market
that Erico’s corn coffee distributed.
COMPANY DESCRIPTION
The business is new distributor of corn coffee located at St. Tunga Brgy.
Palampas San Carlos City. The business started as sole proprietorship that sells high-
quality corn coffee that is affordable and suitable to the taste of the Filipino. However, the
business is open to have an agreement for partnership and to those wanted to be part of
the business. This business has own area, building for processing and stable water
source. We all know that coffee is one of the most-consumed beverages in the world.
Hence, the business took advantage of the consistent demand of coffee and think of a
best solution that can be a great help to consumer to enjoy drinking coffee without harmful
effect on their health and create an opportunity that can help people within the community
through establishing business venture were offering a product to meet immense amount
of demand by making a coffee that is made from corn instead of coffee beans.

Erico’s corn café as a small business the starting capital is 500,000 pesos to care
of the possible operating expenses including transportations, packaging, and the raw
materials needed. Business estimated to produces 500 pouches of corn coffee a month
in order to sustain the market demand, the price per pouch is 75 pesos that is affordable
to the customers. The business before being created, the business owner analyzed the
strength, weaknesses, opportunities, and threats. So that the possible business problems
that might be encounter would be lessen, that serves as a step of hope or the key to
success.

The business name is from the business owner named Erico. He come up with an
idea of introducing beneficial product, which is corn coffee. He tried to promote his product
on social media like his fb page, TikTok, YouTube. to encourage more customers to
purchase the product. He ensured that all his employees are not only skillful he also
matters with their attitudes.
STRATEGIC PLAN

VISION
MISSION
➢ Become the foremost
coffee distributor in San ➢ To provide quality and
Carlos City by 2030. affordable corn coffee.
➢ To be leaders in ➢ To maintain sustainability and
customer satisfaction, profitability.
employee empowerment ➢ Provide a products/service
and to serve with integrity and more reliable than those
of the competitors.
➢ Achieve monthly and yearly
target sales

STRATEGIES
➢ Apply the 7 P’s of Marketing
• Product
• Pricing Sustainability
• Place
• Promotion
• Physical Evidence
Accountability
• People VALUES
• Processes

Innovation Excellence

Creativity Integrity

Teamwork
MARKET ANALYSIS
All residents in San Carlos City are the target customers and most especially the
corn coffee resellers in Jose V. Valmayor public market. As starting of the business, the
business has 5 resellers including Villavelez store, 4E’s store, Aubrey & GB store, T.
Habionda store, Pecajoli store. The stores mentioned are small retail or resale businesses
that stocks a range of everyday items such as coffee, groceries, snack foods,
newspapers, and magazines and many more. As what they have answered during
interviews, they said that they were willing to resale or retail the corn coffee product.

Erico’s corn café is responsible for delivering the product to the resellers/retailers
in Jose V. Valmayor public market. The business estimated to produce 500 pouches a
month, the price per pouch is 75 pesos. If the resellers/retailers ordered 100 pouches
instead of 7,500 pesos, they would be only 7,000 so that the resellers/retailers will save
500 pesos that serves as their revenue. Also, the business provides some feedback form
to the resellers/retailers to know the diminishing returns or their satisfaction about the
product.

The good quality of product will introduce additional flavors and innovations of the
product such as corn coffee with malunggay, corn coffee with mangosteen, corn coffee
with ginger. Different flavors but the same price with complete labelling about the
ingredients used. The benefits and the expiration date are also included on the label of
the product. So, the business shows their example packaging.
COMPETITIVE ANALYSIS
Erico’s corn coffee have 2 competitors as starting of the business within the target
market in Jose V. Valmayor public market in San Carlos City, one for corn coffee supplier
and one for pure/native coffee supplier. The Royal company is the supplier of corn coffee
and it’s located at Cebu City, some of their resellers mentioned that this Royal company
is inaccessible or uneasily to order because of distance of the company. The major
competitor is the Canete store the pure/native coffee supplier. Although they offer
dissimilar product, when it comes of accessibility, they are greatly excessive. Erico’s corn
café ensured the competitiveness of the product to generate the business. The business
has potential to innovate and add additives in order to attract the customers and buy the
product and assured customer satisfaction. In terms of packaging business will ensure
the pricing is affordable and the quality of the packaging, all the necessaries information
about the product must be included.

Some of the resellers/retailers asked that they need a stable supplies of corn
coffee for them to sustain the market demand. They also need a good quality product but
in a lower price, they asked if what would be the method of payments. As an assurance
of the business, the business decided to make an agreement for formality. The Royal
company has a high pricing of their products, but they regain from their packaging and
their popularity of their company. While the Canete store the supplier of pure/native coffee
has lower price, but the quality and the packaging are not really good. The price of the
corn coffee from Royal Company is 1,085 pesos for 12 packs (200g). while the price of
pure/native coffee from Canete store is 72 ¼, and for 1 kg is 288 pesos. So that Erico’s
corn café compete them with the affordable price of 75 pesos per pouch(200g). Also, they
offer a promo if they customer bought 5 pouches of corn coffee instead of 375 pesos they
would pay only 350 pesos, so that the customers will save 15 pesos.
SWOT ANALYSIS

STRENGTH WEAKNESSES
Good place for processing May not attract consumers because
Capability for product innovation of its local product.
Proper product labeling It’s not popular in other people.
Has vital Impact to the health of Lack of knowledge for management
consumers Doesn’t have enough business
Affordable price experience
Modern equipment
Advertising

OPPORTUNITIES THREATS
No same competitor near the New entrant
location Threat from changing technologies
Have partners to support the FDI approvement
production Service quality standards
Seldom competitors for same Shortage of raw materials supply
products Corn production losses
Large number of target costumers
Growing population of coffee
drinkers
Adulterants alternative with
healthy benefits
Up-scale ambiance
IMPACT OF TECHNOLOGY
The business will use social media as an agent to promote the product. Through Fb
page, YouTube, TikTok. Business will be able to reach the customers and encourage
new customers from different places to purchase the product. Social media can the
business to get customer feedback, attract customers and build customer loyalty. The
customers would be aware about business distribution, and they know the beneficial
contents if they purchase the product. With the use of new technologies for processing
will help the business for securing the good quality product and less time consumed.

BUSINESS OPERATIONS
The owner of the business will conduct business through introducing with product
which is the Erico's corn café with its benefits. So that the buyers or the resellers will get
familiar towards product. In line with this, since our business isn't yet familiar to everyone
through that business owner are going to sell it in public like in different public market,
and on social media through advertising with our products etc. In business operations,
business should have a successful operation as well as shouldn't compare the business
to competitors instead. Improve the quality of the products, add some additives to the
product to attract more customers without comparing competitors. In terms of pricing, we
will sell it affordable to the consumers/buyers. In addition, in terms of packaging will
package it simply but with good quality. Further, business owner will set a vision so that
our business will have a great outcome in the future.

MANAGEMENT AND OWNERSHIP

Erico’s corn café is started as sole proprietorship that offers/sells high-quality corn
coffee. This kind of business is considered as low standard of qualifications in term of
their hiring strategy of employees. The business didn’t matter with their education, no
matter what grade they are but their attitudes must important. Also, they are chosen
through their past experiences in coffee making and processing. So that they have
expertise on how they do their duties. Through that way business errors would be lessen
and could make their duties easier and faster. The production manager/business owner
is responsible for guiding them and make themselves comfortable for them would be
productive.
ORGANIZATION AND PERSONNEL
The business will need two (2) employees for the start of the business. The owner
is the production manager and the two are the laborers/workers. The laborers/ workers
will be paid daily with an amount of 200 pesos, so that their monthly salary 12,000 pesos.
In line with this, the business owner will give them advance salary before they started on
their assigned work. The employees are chosen through their past experiences in coffee
making and processing. The production manager and the owner of the business is a
coffee mentor who already has taken trainings and seminars about coffee corn
production. Also, the business owner took up agribusiness curse. Definitely, business
owner has a great foundation to operates his business with his expertise.

CAPITAL AND USAGE

The starting capital of Erico’s corn café is 500,000 pesos to care of the possible
operating expenses including transportations, payment for registration, packaging,
utilities, inventory, sales taxes, repairs & maintenances, salaries/wages, and the raw
materials needed. For illustrative purposes, the business estimated to produce 500
pouches a month so that the business will buy all the materials needed. The price per
pouch is 75 pesos, so that 500 pouches multiplied 75 would be 37,500 pesos a month
that serves as a monthly income. To calculate all the expenses let’s start with the raw
materials, business need to purchase 100kg of corn in a month to produce 500 pouches.
The price of corn is 17 pesos multiplied the 100kg would be 1700 pesos a month. The
monthly salaries for 2 laborers are 12,400 pesos because their daily is 200 pesos. For
packaging, per pouch pesos total expenses is 16 pesos including the prints, stickers.
Also, the business will get from the capital for registration or legalization. The business
will buy all the important equipment’s and tools for the operation like roasting pan, roasting
machine, coffee grinder, printer for packaging etc. To total all the disbursements, the
business does monthly inventory to secure where the capital goes, and to know the inflow
and outflow of the business.
FINANCIAL INFORMATION
Erico’s corn café produce 500 pouches a month, price per pouch is 75, 200 per day
(2 laborer), packaging (16 pesos per pouch including print, stickers), utilities (electricity),
raw materials, transportations. Let’s know the list of quarterly income & expenses

Quarterly

Sales (500 pouches a month) Php 150,000

Expenses

• Salaries/Wages (2 laborer) 48,000

• Packaging
➢ Kraft brown stand up pouch (5 pesos/20x30cm/200g) 10,000
➢ Quaff glossy photo sticker paper (75 pesos/A4) 2,000
➢ Prints 1,000
• Utilities
➢ Electricity bill 1,800
• Raw Materials
➢ Corn coffee (17 pesos/kg) 6,800
➢ Additives (malunggay, mangosteen, ginger) 4,000

• Transportations
➢ Deliveries & Collections 840

Total Expenses 72,840

Total Quarterly Income 77,160

The monthly income of Erico’s corn café is 19,290 pesos, and the quarterly is 77,160
pesos, and the total of the yearly income is 231,480 pesos. In addition, the income of
business will be deducted from other disbursements like sales tax, repairs and
maintenances, bonus for the employees, inventories, registration/legalization. If we’ll
deducted all the expenses/disbursement the monthly net profit would be 7,748 pesos, the
quarterly 30,992 pesos, and the yearly net profit would be 92,976 pesos.
RECORDING
ASSETS

• Cash
• Building
• Land
• Equipment
• Inventory
LIABILITIES

• Salaries & Wages

• Repairs and maintenances
• Raw materials (corn, additives; malunggay, mangosteen, ginger)
• Utilities (Electricity bill)
• Sales taxes
• Registration/Legalization
Owner’s Equity

• Retained earning

BREAKEVEN ANALYSIS
Erico’s corn café produce 500 pouches a month, the price is 75 pesos per pouch. The
monthly sales is 37,500 pesos, quarterly sales is 150,000 pesos and the yearly sales
would be 450,000 pesos. The total monthly expense of the business is 18,210 pesos, the
quarterly expenses 72,840 pesos, and the yearly expenses would be 218,520 pesos.

CAPITAL EQUIPMENT LIST

The starting capital of Erico’s corn café is 500,000, the business will buy the
equipment’s needed for operations such as in the following.

1 Roasting pan (64/25inch): P1,660.00

1 Corn coffee Grinder (KG79): P5,800.00
3 Stainless mixing spoon (55): P165.00
2 Stainless steel basin (1,617): P3,234
2 Drum/pail 60L (450); P900.00
2 Weighing scale (450): P900
4 Plastic measuring cup (45): P180.00

Total: P12,839
CASH FLOW STATEMENTS

Erico’s corn café

State of Cash Flows
For the Year Ended December 2022
Cash Flow from Operating Activities
Cash receipts from customers P450,000
Cash paid for
Salaries expense P144,000
Inventory expense P10,000
Transportations/Collections P10,080
Income/sales taxes P33,750
Packaging expense P96,000
Utilities P5,400
Repairs and maintenances P20,031
Net Cash Flow from Operations P139,739
Cash Flow from Investing Activities
Purchase of equipment’s P12,839
Cash Flow from Financing
Notes payable P33,924
Cash at the end of the year P 92, 976
 BALANCE SHEET

Erico’s corn café

As of the year ended 2022

ASSETS Liabilities
Cash 500,000 Salaries 144,000
Building 292,000 Transportations 10,080
Land (1/4 ha) 50,000 Packaging Expenses 96,000
Inventory 10,000 Utilities 5,400
Equipment 40,000 Repairs and maintenances 20,031
Sales taxes 33,750
Registration fee 500
Equipment supplies 12,839

Total Liabilities 442,000

Owner’s Equity
Retained Earnings 450,000

Total Assets: 892,000 Total Liabilities: 892,000

INCOME STATEMENT

Erico’s corn café

For Year Ended December 2022

Sales 450,00
Less: Cost of Goods Sold
Direct labor 144,000
Raw Materials 129,600 (273,600)
Gross profit P176,400
Less: Operating Expenses
Transportations/collections 10,080
Packaging 21,600
Repairs and maintenances 18,000 (49,680)
Operating Income P126,720
Less: Pre-tax profit
Income/sales tax expense 33,744 (33,744)
Net profit P92,976
APPENDICES
- Rodriguez 2018 enumerated some of the healthful benefits one can get from drinking
corn coffee.

- According to the UN Food and Agriculture Organization (FAO) 25 million of

smallholder farmers rely almost exclusively on coffee production for their livelihood.

- According to DA, oorn coffee was initially produced in San Carlos City

- Maya Feller, MS, RD, CDN 2022 stated that Coffee contains caffeine, a stimulant that
has been shown to increase energy levels and decrease fatigue by altering levels of
certain Neu transmitters in the brain.

- DM Ikasari 2021, the results show essentials attributes for consumers to improve the
quality of ground coffee include unique packaging.

- SJ Abarca 2015, promoting diversification

- Maria Carmela Sue, successful corn coffee entrepreneur

- Swot analyzation

- Competition Analyzation

- Market Analyzation

- FDA Approval

- Marketing goals and objectives

- Target markets/customers

- Different research tactics

- Government supports from LGU and government workers

- Development of timeline and budgets

- Financial sustainability and maintenances

- Legalization and extension of the business