2022

BUSINESS PLAN

ELLEN JOY DE GUZMAN

PATRICE RAGADA
IMEE PORRAS
IVY PORRAS
ZYD LAGOS
 TABLE OF CONTENTS

I. EXECUTIVE SUMMARY......................................................................................................................................1
DESCRIPTION OF BUSINESS...................................................................................................................................0
VISION........................................................................................................................................................................0
MISSION...................................................................................................................................................................... 0
POSITIONING STATEMENT....................................................................................................................................0
ABOUT THE PRODUCT............................................................................................................................................0
PRODUCT DESCRIPTION AND VISUALS..............................................................................................................0
SPECIFICATION.........................................................................................................................................................1
STRATEGY FOR BRANDING...................................................................................................................................2
STRATEGY FOR LAUNCHING................................................................................................................................0
TARGET MARKET.....................................................................................................................................................0
COMPETITORS..........................................................................................................................................................0
CUSTOMER................................................................................................................................................................0
GEOGRAPHIC PROFILE...........................................................................................................................................0
PSYCHOGRAPHIC PROFILE....................................................................................................................................0
BEHAVIORAL PROFILE...........................................................................................................................................0
III. Market Analysis and Competition........................................................................................................................0
IV. SALES AND MARKETING PLAN.....................................................................................................................1
Product or Service Offerings........................................................................................................................................1
Sales and Distribution...................................................................................................................................................1
V. OWNERSHIP AND MANAGEMENT PLAN.....................................................................................................0
VI. OPERATION PLAN............................................................................................................................................0
PRODUCTION............................................................................................................................................................0
STAFFING................................................................................................................................................................... 0
FACILITIES................................................................................................................................................................. 0
SUPPLIERS................................................................................................................................................................. 2
VII. FINANCIAL PLAN..................................................................................................................................................2
VIII. APPENDICES AND EXHIBITS.............................................................................................................................3
I. EXECUTIVE SUMMARY

Sweet Cake will be a small entrepreneurial bakery located in Lapaz, Iloilo City. We choose
this product Sweet Cake because we will be offered with a variety of flavors, frostings, sizes, styles,
toppings and decorations. This bakery will contain a comfortable setting area, allowing customers to
stop in and sit down. Sweet Cake will also include a catering service to deliver large orders for big
events, providing greater convenience for customers. As a bakery, Sweet Cake will have extensive
target market. People of all ages enjoy delicious cake and will therefore be included in the target
market. Cakes are a big and small priced item, they are obtainable by nearly anyone, despite varying
incomes, again keeping target market large. Between the numerous product options, convenient
services, and a broad target market, this bakery will be able to meet the needs of a wide spectrum of
consumers.

Product quality is critical in the food industry. For the reason, Sweet Cake will ensure product
quality using fresh ingredients, sale of only fresh cupcakes, and a focus on cleanliness. Innovation are
also a goal of the company. One way which this will be accomplished is through creating new flavors
of cakes, and frostings each month and offering them for a limited time. This will allow the business
to test new products and determine which ones are preferred by consumers. Similarly, Sweet Cake
will provide seasonal cakes with flavors corresponding seasons. These treats will also only be
available for a limited time each year. Product quality and innovation will be a major focus of the
business.

Though Sweet Cake will open as a single, small bakery, over time the business will strive to
expand. Once the bakery proves to be a success, the business will open more stores in areas nearby
the original. As the success of the overall business increases, Sweet Cake will slowly expand to a
wider range of location. A company website will allow consumers to view everything offered by the
bakery, as well as grant option for customers place orders. These extensions will allow Sweet Cake to
be accessed by a larger quantity of consumers.
DESCRIPTION OF BUSINESS

Sweet Cake is a small bakery shop business wherein the products are to be sold directly to the
customers. This small business will be managed and operated by incorporated partnership. The very
own business owners which has excellent interest in running a business anchored with highly
equipped skills and expertise in business industry. Sweet Cake is determined to become a daily
necessity for local bread and pastry products lovers, a place to dream where you can try to escape the
daily stresses of life and just enjoy the taste of the baked foods and beverages. Sweet Cake will serve
a traditional and cultural Filipino style to showcase local ambiance, with an emphasis on healthy,
tasty breads and other baked food. Low-fat ingredients will be used whenever possible in such a way
as not to sacrifice taste or appeal. Menu items will range from PHP 5 - PHP 300 depends to the
purchased products. The shop will be open from 10:00 AM until 6:00 PM.

VISION

As an organization in a highly competitive market, we will differentiate ourselves from the

competition and look to become the primary bakery for higher income individuals. The vision will be
accomplished by creating an elegant atmosphere like none-other.

MISSION

The mission of Sweet Cake is to provide an elegant experience the makes customers feel
sophisticated.

POSITIONING STATEMENT

For children of ages who love cakes or cake-acholic, Sweet Cake is business who bakes and
offer different kinds of cakes that has exceptional taste. Customers can enjoy the taste of good quality
and satisfying cake. Sweet Cake is a customer friendly business and most of all a business that makes
unique creations for unique occasions.
ABOUT THE PRODUCT

Cake is a form of sweet food made from flour, sugar, and other ingredients, that is usually
baked. In their oldest forms, cakes were modifications of bread, but cakes now cover a wide range of
preparations that can be simple or elaborate, and that share features with other desserts such as
pastries, meringues, custards, and pies. The most commonly used cake ingredients include flour,
sugar, eggs, butter or oil or margarine, a liquid, and a leavening agent, such as baking soda or baking
powder. Common additional ingredients and flavorings include dried, candied, or fresh fruit, nuts,
cocoa, and extracts such as vanilla, with numerous substitutions for the primary ingredients. Cake is
often served as a celebratory dish on ceremonial occasions, such as weddings, anniversaries, and
birthdays.

PRODUCT DESCRIPTION AND VISUALS

Cake is a traditional food served during a celebration as it is something that brings people
closer together. Cakes, especially chocolate, vanilla and red velvet cakes make celebration a little
sweeter. Sweet Cake is a cake that could ease the thirst of everyone and it suits in every occasion.
SPECIFICATION
II. BUSINESS/INDUSTRY OVERVIEW

Sweet Cake is a small entrepreneurial bakery located in Lapaz, Iloilo City. This bakery will serve
a community of employees from the surrounding businesses and students attending the nearby
universities. For children of ages who love cakes or cake-acholic, Sweet Cake is business who bakes and
offer different kinds of cakes that has exceptional taste. Customers can enjoy the taste of good quality and
satisfying cake. Sweet Cake is a customer friendly business and most of all a business that makes unique
creations for unique occasions.

The business is a traditional bakery, baking a large variety of cakes, cupcakes and cookies, sized
to customer requirements. The bakery specializes in creating and designing cakes, cupcakes and cookies
for various life events as well as corporate functions. All our products are prepared fresh everyday with
locally grown ingredients.

The company plans to expand operations and business by increasing the current production with a
dine in and take out restaurant. This plan covers all aspects with respect to the expanded business.
Current business reports are provided separately

STRATEGY FOR BRANDING

Amidst of COVID-19 pandemic, there are lots of business created, everyone become
entrepreneurs. Human always need something on their daily life. Our business namely Sweet Cake
provides or offers our customers delicious baked cuisines made with love-for love, it is mostly needed by
people to who is not fond of heavy meals. Sweet Cake offers an affordable price which is tentatively start
from PHP 5.00. There are existing competitors in the market, however, they do not have what we
uniquely offer- our specialty products and our inevitable welcoming atmosphere that fumes in love.
That’s why our business would like to focus to a wide range of target market. Sweet Cake offers tasteful
baked delicacies that will make the customers feel more alive. The customers can buy products directly in
the shop and also this business will be available online specifically Facebook page where customers can
contact the page or send message through an email or phone number if the customers want to order coffee
with lots of different variety of flavors.
 Since the possible costumers of the shop is residing in (the place where you are currently
living), possible extension of brands may be institutionalized in another street of the locality.

STRATEGY FOR LAUNCHING

We have a good variety of products. To get long term relationship with customers we can also
offer discount on the large purchase orders and for first time customer. Also, free delivery of orders to
customers home.

TARGET MARKET

It aims to promote the products of all ages. From the previous market research, we have
conducted, it yielded results which shows that mostly ages from 15-50 are our potential customers as
they responded with our survey questions positively and showed great interest with our business
product idea. People of all ages, children through adults, enjoy delicious treats, and therefore will be
incorporated in the target market. This product is not a high-‐priced item and, as a result, will be
available to nearly all people regardless of varying incomes.

COMPETITORS

There are no other cake decorating, baking, or food classes offered in Iloilo City. Therefore,
our competition in this area of Iloilo city would be indirect though the hobby market. Such indirect
competition includes sewing classes offered the local quilting shops and community education
classes.

Meggie’s Bakery is a locally owned bakery in Iloilo City that specialized in donuts. Cakes and
other treats are also sold at the location but are not made with high quality ingredients. The cake
choices are very limited, and the icing is made with shortening. Again, low quality for low costs.

Great harvest bread company serve as a competition because of the cookies and other small
treats that are sold in their bakeries.
 Uptown Café would also be our competitor because of the primary focus of their restaurant is
high quality and expensive meals. On the other side, the Uptown café occasionally produces and sells
wedding cakes and other desserts.

CUSTOMER

In order for Sweet Cake to be successful and grow, we should identify different profiles of our
customers. They know how to identify their age, where their trade area is located, and how to identify
appropriate customers. Below is the demographic, geographic, psychographic, and behavioral profile
of our customers.

DEMOGRAPHIC PROFILE

The demographic profile of Sweet Cake is the suitable age range of customers that would buy
our product. Most likely, men and women ages 18 to 60 years old will most likely buy our product
because teenagers, customers that are in their early 20's and even late 30's like to follow what is
trending or famous, just like Sweet Cake customized cakes are very popular during special occasions.
It is also suitable for customers celebrating their 60th birthday, which is very special to them.

GEOGRAPHIC PROFILE

The geographic profile of our customers will be in the vicinity of Iloilo, specifically Iloilo
City. Sweet Cake chose to pick a small range of trade areas because we are a start-up company and
dealing with customers outside Iloilo will be a huge risk for us and for our business. Eventually,
having enough knowledge and experience, Sweet Cake will most likely branch out or cater to
customers outside Iloilo.

PSYCHOGRAPHIC PROFILE

The psychographic profile of Sweet Cake customers will be people who like to buy cakes on special
and small occasions. This will not only be limited to the working class, but also the students who like to give
their loved ones a special treat. Our price depends on the size and design of the desired cake for the customer,
which means people from the lower class all the way up to the upper class will be our targeted customers.
 BEHAVIORAL PROFILE

In the behavioral profile, our target customers will be the ones who like to socialize, catch up
with friends, and celebrate special occasions with their families and even people who like to eat
delicious and satisfying cake. Another target customer is those who like cakes as gifts for people who
have achieved something, like graduations, promotions, and weddings. Overall, our target customers
are the ones whose motto is "Food is life."

III. Market Analysis and Competition

Sweet Cakes business serves varieties of cakes and pastries generally made for all people at all ages.
Including youngsters, teenagers, and seniors who enjoy eating sweets.  It provides the finest products that
will genuinely delight every buyer. The Sweet Cake Company is a customer- friendly company that offers
unique desserts for a range of occasions. It requires a diversity of base and icing tastes as well as sizes,
shapes, styles, toppings, and decorations. Since this establishment allows clients to dine in, it requires a
sizable space for their comfort. The market is estimated to be between 2,000 and 3,000 clients, depending on
the region and age of the potential customers. However, due to changes in the economy or in the
demographics, it could go up or down.

Along with providing food of high quality and great taste, our company also distinguishes itself from
its customers by using a special selling strategy. It enables each consumer to select or customize cake designs
in accordance with their preferences. Making cakes uniquely designed would be a wonderful way to
encourage customers to buy again. Competitors like Goldilocks and Red Ribbon is a step behind our
business. Because they only sell readymade cakes and they didn't offer customize or personalize designed
cake.

IV. SALES AND MARKETING PLAN

Product or Service Offerings

Our business promotes discounts to customers who purchases large purchase orders and for those who
bought at us for the first time. Through this we are able to get a long-term relationship with our customers. We
also offer free delivery. However, for our pricing strategy, we guarantee that the amount a customer has paid
will satisfy his/her expectation. We give importance to our customers, so we are making sure that no customer
would leave a negative comment on what they purchase.

Sales and Distribution

The supply chain that The Sweet Cakes will employ is shown in the image above. As you can see, we
have excluded wholesalers because they would require a significant investment in equipment, staff, and vast
storage facilities. Since Sweet Cakes is a start-up company, the finished product will be delivered right to the
customer. We have a small shop space where customers may pick up their cakes or have them delivered right
to their doorstep. Our retail store also has cakes that are already created. Due to the fact that Sweet Cakes is a
start-up company and that our means of product distribution are through our retail shop and online, which are
restricted to the Iloilo area, we will use selective distribution as opposed to intensive and exclusive methods of
marketing. Given that our product is not intended for the mass market, selective distribution will be used
because it is purely strategic.  Eventually we can step up in opening a retail store in famous malls such as SM,
Robinsons, Festive mall, and even S&R for the fact that we also have readymade cakes.
V. OWNERSHIP AND MANAGEMENT PLAN

The Sweet Cake firm is a sole proprietorship in terms of ownership. In other words, the
owner is the only one capable of managing everything. In order to start this business, he requires
two kitchen staff members who are in charge of baking, one dishwasher, one counter employee
who accepts client orders and also functions as a cashier, two persons who are in charge of
serving the food to the customers, and a driver.

VI. OPERATION PLAN

PRODUCTION

All of the baked goods will be assembled and cooked in the on-site kitchen. There are three main
tasks that will occur in the store: (1) food preparation; (2) cooking the food and packaging it; (3) and
customer service. There will be three people working at the store most of the time, four to five people
working during the lunchtime rush.

STAFFING

Hours operation will be Monday to Saturday 10:00 am to 6:00 pm. Our bakers will come early
each day to begin preparations for the daily menu. Bakers will be working 7:00 am to 3:00 pm and our
other employees (cashiers, waiters and dishwashers) will be working 10:00 am to 5:30 pm. Costumers
service and image will be important un the employees that we hire. The work can be learned on the job
and does not require much experience. Also we offer part time employee, college students would be ideal.
Employees should be energetic, friendly and care about the quality of the work they produce.
FACILITIES

There will be small eating area, counter area, and a preparation and a baking area. Total of 100
square meter. The building will need to be able to have appropriate ventilation. The space should be street
level, have good visibility and have easy walk-in access. Rent will be one of our biggest costs. We have
budgeted 10,000 pesos for rent. Our expenses include the following:

Rent 10,000 pesos

Salaries 10,000 pesos

Equipment 57,000 pesos

Utilities 1,500 pesos

Fixed Cost 78,500 pesos

Equipment
The list of equipment’s:

Type Items Total Cost

Heavy-Duty Mixers, Dough roller, and Dough 13,000

sectional cutter
Machinery

Built-In Oven (2) Refrigerator, Freezer, 21,000

Flour storage containers, and
Display cases

Other Equipment Coffee maker, Muffin tins, and 10,000

Baking sheets

Specialty Cake pans (various shapes and 13,000

sizes), Tables and chairs Cookie
cutters, and cake decorating tools

SUPPLIERS

Sweet cake emphasizes quality food and locally grown fresh food. Because of this, we will
carefully select our suppliers. We will set up wholesale relationships with a variety of suppliers.
 There will be 3 main categories for our inventory; (1) paper goods and basic supplies such as
napkins, boxes, paper towels, etc. (2) goods that can be kept for several weeks or months, such as bottled
drinks, flour, cheese, olive oil, etc. and (3) fresh ingredients that must be used within a couple of days
such as vegetables and herbs. Total monthly inventory is estimated to be around 20,000 pesos.

VII. FINANCIAL PLAN

Price

Unit cost= Variable Cost + (FC/Unit sales)

Unit Cost = 2,748

Markup price: Unit Cost/ (1- desired return on sales)

Markup Price 134,652

VIII: Breakeven

Breakeven Volume = Fixed Cost/ (price-variable cost)

Breakeven Volume= 2.596

VIII. APPENDICES AND EXHIBITS

Information and Details

Location: Lapaz, Iloilo

Contact: 09683607136 STORAGE

Email Address: sweetcake@gmail.com

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