You Imagine, We Create

Zendy’s Slices
Customized
Cakes

A 5-year Proposal
Marketing Plan

By: Martinez, Albert

Macaspac, Evangeline
Punzalan, Kyle
Sicat, Micaela
 Unisite Subdivision, Del Pilar, City of San Fernando, 2000 Pampanga, Philippines

Zendy’s Slices Customized Cakes

MARKETING PLAN

UA Graduate School
Marketing Management Course
March 2018

Executive Summary
Zendy’s Slices Customized Cakes is a vanishing bakery retail establishment located in Del Pilar, City of
San Fernando, Pampanga. Zendy’s Slices expects to catch the interest of a regular loyal customer
base with its broad variety of cakes and pastry products. The company plans to build a strong market
position in the town, due to the partners' industry experience.

Zendy’s Slices aims to offer its products at a competitive price to meet the demand of the middle-to
higher-income local market area residents and tourists.
Zendy’s Slices commitment to excellence in the craft and artistry of baking enables us to deliver high
quality products that look superb, delight the customer and make celebrations a moment to cherish.
The products will exceed local stores and franchise competitors and it will possess that certain
something that others do not have. They offers a wide range of exciting products. The first group is
spelt customized cakes, cupcakes, and pastries. Spelt is used as there are far fewer people that are
allergic to this grain. Yeast allergies are also common and Zendy’s Slices offers a menu of yeast free
breads. Dairy free muffins and pastries are offered for vegans. Lastly, egg free breads, muffins, and
pastries are offered.

Zendy’s Slices wants to establish a large regular customer base, and will therefore concentrate its
business and marketing on local residents, which will be the dominant target market. This will
establish a healthy, consistent revenue base to ensure stability of the business. In addition, tourist
traffic is expected to comprise approximately 35% of the revenues. High visibility and competitive
products and service are critical to capture this segment of the market.

PART 1: SITUATION ANALYSIS

Our country is blessed with the best pastry chefs around the country. It is with this concern why
Filipinos love to eat sweets and cake is always on the top list of every occasion. Filipinos look for the
best cake and cupcakes store. And the numerous exciting innovative designs could be offered.
With these thriving times most Filipino are very wise on their expenditures. Best taste and bonny
design should be translated as “Perfect Yet Affordable”. It is in this view, that smaller cake and
cupcake stores has spawn to cater to the needs of this growing class which loves to have a perfect
cake and cupcakes in their occasions yet are on a tight budget. Up until now, the numbers of smaller
cake and cupcakes establishments are steadily increasing. Competition is stiff. Each establishment
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offers different products that make them even more different or unique from the others.
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In line with this, Zendy’s Slices offers a gimmick with a tagline of “You Imagine, We Create”.
 Unisite Subdivision, Del Pilar, City of San Fernando, 2000 Pampanga, Philippines

Imagine your own design or your cake requirements that suits your budget and we will create it for
you.

Company Historical Milestones

Zendy's started with a humble beginning. It was a dream conceived and materialized by Mrs.
Luzendy M. Bais, a BS Hotel and Restaurant Management of Centro Escolar University. It started as a
home business, where cupcakes, brownies and cakes were baked by an old yet very efficient turbo
toaster. The products were sold to friends and officemates where her relatives (cousins and mother)
work.

In order to expand the business, Mrs. Luzendy Bais did all the necessary effort to increase the
market. She found the internet, especially the social networking sites a very powerful tool to gain as
much customers as she could. Fortunately, all her efforts served her best. The advertisements
posted through the internet resulted to more buyers, through referrals and word of mouth. Beyond
her imagination, the product became widely recognized and patronized by many.
Mr. Russel T. Miranda, a graduate of Bachelor of Science in Business Management at the
University of the Assumption, her brother, saw her passion and the potential of the business.
Knowing that it would grow with a bigger capital, he decided to invest in the business. Putting up
money was not that easy for him. It cost him much effort and courage to raise enough capital and to
get the business ready.

He used a big part of his savings to be invested; however, he realized it was not enough. Hethen
decided to loan from his mother for the remaining money needed to formally start up the business.
He encountered a lot of challenges conceptualizing and developing the mechanics of the business,
and all its different aspects. Despite that, the siblings were able to get through.
At last, on April 2013, Zendy's Slices Customized Cakes was launched and opened for business. Now,
it is serving people the best of personalized cakes and sweets for all occasions.

Current Marketing Strategies and Current Target Market

Zendy’s strategy focuses on building a customer base by providing good customer experience.
Hoping to have customers make the bakery their one-stop destination for celebrations.

The main target market of Zendy’s are the returning customer that lives in the neighbourhood. We
will focus on offer a personal customer service to enhance customer satisfaction, and will aim to
supply the best products on offer at a competitive price. We believe that this is key to maintaining
the local market share of this target market.

Positioning
The positioning goal for Zendy’s Customized Cakes and Slices is to be THE healthy, delicious, and
environmentally-friendly choice for baked goods at the City of San Fernando, Pampanga. By pursuing
this goal, Zendy’s intends to achieve the following measurable results:
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 Unisite Subdivision, Del Pilar, City of San Fernando, 2000 Pampanga, Philippines

● Our focus is on meeting the demand of our regular customer base, walk in customers and
tourists.
● To develop the strong presence in the community needed to support sales goals.

Product Strategy
As a business, we are willing to go the extra mile to invest in building a standard in – house bakery
and also to hire efficient and dedicated employees. Our in – house bakery and delivery network will
be customized to fit into the kind of ideas we have of how a standard baking and retailing business
should look like. Zendy’s Slices is hoping to be an active part of the community. It should be the
place where people want to go to share nice moments around delicious delicacies. Moreover, we
want our customers to think about our bakery for their lifetime events. Therefore we need to give
our customers the feeling that we are part of their family and their daily life.

A key success factor for a bakery business is the ability to anticipate changes in your customers'
tastes in cakes. Monitor trends by studying bakery industry trade journals and visiting some
competitors’ stores or websites to see what new cake products they are offering. Come up with a
rollout strategy so you have something new to offer and promote at least once a month. Develop
your own signature cake recipes with unusual combinations of ingredients. Survey your customers’
in-store or through email about what new cake creations they would like to see.

MACRO ENVIRONMENT ANALYSIS

1. Economic Environment
The strengthening of an economy will generally benefit industries but its effect will vary according to
which factors are most affected. The economic factors include interest rate, disposable income,
inflation, gross domestic product, unemployment rates, budget deficit and surplus, personal savings
rate, business savings rates and exchange rates. (Anthony H, 2008)

Price Inflation is an increase in the price of a standardized good/service or a basket of goods/services

over a specific period of time (usually one year). Any industry will definitely get limitless benefit if
the economy is in strength. Economic factors does include inflation, gross domestic product and
unemployment rates along with exchange rates and business savings rate. The rise and fall of
commodity and raw material and rise in fuel prices all over the city cause the rise of purchasing costs
for Zendy’s Slices and the extra cost has to pass over to consumers by increasing the prices of
products. The credit crunch can impact Zendy’s Slices as it might decrease the power of purchasing
of consumer and Zendy’s Slices may face competition from local small bread retailers who offer at
more affordable prices though less delicious to cost conscious consumers.

2. Socio-Political Environment
Increasing globalization and trade barriers has created an opportunity and challenge to
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Zendy’s Slices as Zendy’s Slices can enter the market by emerging companies in political stable cities
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to explore the new market especially in markets where bread could be luxury but at the same time
 Unisite Subdivision, Del Pilar, City of San Fernando, 2000 Pampanga, Philippines

Zendy’s Slices will have to challenge with all type of sources to source for low cost high quality from
world over.

Taxes that affect the business (Value-Added Tax). VAT stands for Value Added Tax is a type of sales
tax which is levied on consumption on the sale of goods, services or properties, as well as
importation, in the Philippines. To simplify, it means that a certain tax rate (0% to 12%) is added up
to the selling price of a goods or services sold. It is also imposed on imported goods from abroad
(mpm.ph by Maria Lourdes Yanuaria).

Value Added Tax (VAT) in the Philippines is a tax that each and every entrepreneur should be very
much aware of. Firstly, it affects all of us consumers. Secondly, it greatly affects business
transactions, in a way or another, such as in pricing where goods or services bought and sold
contains VAT, maximizing profits when input VAT is minimal, cash flow issues, and more
(taxacctgcenter.org by Garry Pagaspas).

Filipinos attitude toward cakes and pastries. Bread is certainly a part of every Filipino’s
DNA. One can easily remember growing up to using the ordinary white tasty bread to make
sandwiches and snacks (gmanetwork.com, 2015). In the Philippines, bread and pastries are not just
for eating. They are tradition. Filipinos share these breads and pastries with their loved ones,
bringing them home as pasalubong or gifts, and eating them together with family and friends during
special occasions (delishably.com, 2016). This implies that Filipino always have positive attitude on
bread, cakes and pastries and this results positive response for cakes and pastries shops. Cakes and
other kind of breads are always part of Filipinos’ occasions. In that matter, Zendy's Slices Customized
Cakes took this opportunity to have an edge because all cakes and pastries that they baked are
based on what customer wants and needs. In addition, the shop offers variety of designs and also
creating designs depending on the client's request and affordability.

3. Technological Advancements
No doubts that major changes taking place in the general environment that are impacting the
competitive environment are technological. Technological factors include product innovation,
applications of knowledge, new communication technologies and etc. (Anthony H, 2008)

New communication technologies. The rapid rate of changes of technology has allowed new
entrants to enter the market at a lower cost base. Modern processes and machinery with many
communications devices now can now be used by Zendy’s Slices to ensure the cost of labor and
production are reduced and orders to process faster due to globalization and changes in
technological factors.

Product innovation. The next generation of bakery has arrived, when concept to delivery means just
that, ideas to 3D designs, prototype to fabrication, manufacture to support. There are innovators,
designers and fabricators that works with Zendy’s Slices to create the equipment needed to produce
the product. End to end solutions when sometimes off the shelf is just not good enough.
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4. Natural or Ecological Concerns

 Unisite Subdivision, Del Pilar, City of San Fernando, 2000 Pampanga, Philippines

Environmental regulations allows Zendy’s Slices to meet personal grooming needs and health issues
which targets the consumers to be efficacious and safe. The responsible company needs to ensure
that products produced must be safe to use/eat even in a daily life. The idea of environmentally
friendly and to promote green environment is popular now in the Philippines.
National Bakery Policy Act. Under the bill to be known as the “National Bakery Policy Act of the
Philippines of 2013,” a National Bakery Regulatory Agency is created to implement all laws, rules and
directives regulating and promoting the bakery industry in the country. “Originally, the aim of bread
and bakery goods enrichment was to restore vital nutrients lost in the milling process. Today,
enrichment of bread cereal products is to take advantage of bread being the basis or an integral part
of modern day diet and optimize ingestion by food of these micronutrients by normal eating,”
Rodriguez said.

The use of environmentally friendly packaging. CITY OF SAN FERNANDO, Pampanga, Jan. 6
(PNA) –The city government, through its Environment and Natural Resources Office, has lined up
various activities in line with this year’s celebration of Zero Waste Month (bayanihan.org, 2015 by
Froilan Magtoto). The LGU implemented Ordinance No. 2014-008 also known as the plastic-free
ordinance of the City of San Fernando, Pampanga wherein no store shall utilize or provide free
plastic bags as primary and secondary packaging materials on goods to customers except those pre-
packed goods by manufacturers while mandating all stores to make available for sale of reusable
bags and woven bags for the purpose of carrying out goods from the point of sale (region
3.dilg.gov.ph, 2014).

INDUSTRY ANALYSIS

Baking has grown over the last century in the Philippines, from a relatively small industry to a large,
popular industry. Initially, the island featured mainly independent bakeries that serviced cities and
towns and provided employment to the local people. Nowadays, chain bakeries have increased the
number of bakeries in the Philippines and have also lowered the prices of bakery products. Due to
the increased demand for bakery products from the population in the Philippines, the baking
industry has grown, leading to it providing greater employment opportunities both in the bakeries
and in central management.

Most countries with developed economies, as well as a number of developing countries, have strong
bakery industries. Bakeries provide necessities to the population in terms of bread and cake
products. Almost every household relies on the consumption of staple products such as bread, and
so the baking industry is able to thrive with this large, reliable demand. Bakeries require skilled
bakers as well as other employees to serve customers, meaning the industry provides significant
employment opportunities. Many people in their later teen years take up apprenticeships in
bakeries to learn the trade.
It is debatable as to whether or not bakeries will continue to thrive in today's modernized world.
This is for the most part down to the rise in the power of supermarket chains. Many supermarkets
now provide bread and other bakery products themselves - some even have their own bakeries in-
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store. This is bad news for independent bakeries who struggle to compete with the supermarkets;
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they are unable to provide the same level of convenience. That said, in most cases the quality of
 Unisite Subdivision, Del Pilar, City of San Fernando, 2000 Pampanga, Philippines

their goods is significantly higher than those sold in supermarkets. It remains to be seen whether the
bakery industry will be able to survive when the major supermarkets have such great monopoly
power.

PORTER’S FIVE FORCES

1) Rivalry of competition

CONCLUSION BASIS FOR CONCLUSION

HIGH Increasing number of competitors- Being part of Filipino culture since the
earliest dawn of celebrations both grand and simple, the delight of eating has
always been there to make family and community bonds stronger (but never to a
glutinous point). This has given birth to many fiestas and specialties served by
the many provincial destinations, adding vastly to the array of Filipino dishes,
ranging from humble street food favorites to the fine class meals of hotels and
restaurants (Fawkes, 2012). Since Filipinos loves to celebrate different occasions,
these resulted to the presence of cakes and different kind of dessert on dining
tables. This open opportunity to businessmen to open up cake and pastry shops.
Red Ribbon, Goldilocks and Julies Bakeshop are just some of the biggest
competitor of Zendy’s Slices. Since these companies already established their
business and already marked their name in the industry, it is now so difficult to
small cake shops like Zendy’s to compete to them.

Consumers can switch brands easily- Because there are lots of Cakes and Pastry
shops today in the market, it resulted to high possibility of consumers switching
brand. These may include those big and small companies where they have direct
effect on Zendy’s Slices sales and market. In addition, there are also this
increasing number of small cake shops which can affect Zendy’s because
customers may shift to them since they offer the same products and services.

Industry demand declining- The purchase power of customers is declining

because people always try to find new alternatives.

Barrier to leaving the market/industry is high- Since a large number of

competitors in the industry are all competing for the same customers, Zendy’s
Slices is having a hard time to take part and also the popularity of the big
companies added challenge to the business. Not being able to have enough sales
and sustain the needs and expenses of the company may result the business to
leaving the market and industry.
Products are perishable- Since Zendy’s Slices offers a variety
of cakes and pastries, it is now their responsibility to keep their product fresh
and has the most quality from raw materials to finish product. Other companies
such as big companies can afford to use latest technology, using different
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ingredients and adding preservatives to maintain the freshness of their products

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that gives an edge to them compare to small cake shops.

 Unisite Subdivision, Del Pilar, City of San Fernando, 2000 Pampanga, Philippines

2) Potential for new entrants

CONCLUSION BASIS FOR CONCLUSION

MEDIUM Aside from the big companies of Red Ribbon, Goldilocks and Julies Bakeshop,
Zendy’s Slices other direct competitors are those small cake shops offering the
products and services that Zendy’s has. The business threat of the new entrants
would be the establishment of new cake shops near its location, this can have an
effect to the business by having the possibility of decreased number of customers
who are buying its cakes and cupcakes. Zendy’s can still manage to compete and
have an edge over competitors because of their quality products and affordable
price.

Strong customer loyalty- Zendys Slices offers fresh and quality products that
resulted to customer satisfaction and loyalty. The business is being loved by its
customers because they were able to fulfill all their customer’s request and needs
at the affordable price despite of the increasing number of competitors.

Strong brand preference- This happens when the customer is not satisfied with
the products they received. This resulted to looking and switching to other
bakeshops that will fit their taste buds.

Lack of access to raw materials- Since Zendy’s Slices is not as big as other
companies such as Red Ribbon, Goldilocks and Julies Bakeshop, access to raw
materials then is quite limited. Increased price of the major ingredients such as
eggs, milk, flour and sugar have direct effect on the business. Big demand of these
ingredients especially when there is this increasing number of new competitors,
may lead to fewer access of raw materials. 7
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 Unisite Subdivision, Del Pilar, City of San Fernando, 2000 Pampanga, Philippines

3) Bargaining power of suppliers

CONCLUSION BASIS FOR CONCLUSION

MEDIUM Because of the price fluctuation in the market which includes the basic ingredients in
baking such as flour, sugar, eggs and milk, bargaining power of supplier then
increases. Despite of having lots of available baking supplier nowadays, it is still hard
for Zendy’s Slices to look for the one who offers cheap cost at a good deal. Unlike
other big companies, Zendy’s Slices can only afford less because they have limited
funds which resulted to fewer orders on raw materials. Less orders on materials also
lessens the discount they might avail compared to buying on large volume. And also,
there is this limited alternative for the main ingredients needed in baking. Despite of
the increased price on the said materials, the business will still purchase on these
products because they’ll need them to run the business.

As a result, there is this high tendency that Zendy’s Slices will pass or charge the
customers the increased cost in baking and this may result to increased price on
products.

4) Bargaining power of buyers

CONCLUSION BASIS FOR CONCLUSION

MEDIUM Zendy’s Slices has a large volume of competitors in the market, offering the same
products and services that the business has. Big companies such as Red Ribbon,
Goldilocks and Julies Bakeshop already marked in the minds of consumers as the
most popular shops in the cake and pastry industry. Because of the marketing efforts
of the said companies, consumers are already familiar with all their products and it
resulted to lesser effort of companies to attract customers. In line with this, Zendy’s
Slices still doing efforts in promoting its own business. Starting with producing
quality products where customers may use word of mouth in return of their
satisfaction.

Despite of the increasing number of competitors and popularity of the big

companies, Zendy’s Slices will still strive to be one of them in the near future. As far
as the bargaining power of Zendy’s Slices is concerned, the business will still offer
unique and quality products in order to have distinctive and exclusive taste where
customers cannot easily switch to other bakeshops. In addition, customers may avail
these quality products at the most reasonable and affordable price. As stated with
the product prices, there is still this power of customers to request when it comes to
the product they wish to avail. Customers may ask discounts and inquire for the
product based on their budget and needs.
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 Unisite Subdivision, Del Pilar, City of San Fernando, 2000 Pampanga, Philippines

5) Potential for substitutes

CONCLUSION BASIS FOR CONCLUSION

MEDIUM In the industry nowadays, there are lots of establishments that offers the same kind
of products and benefits to customers. This include cakes and pastry shops offering
the same quality of products but in different prices. In line with this, big companies
can fix their price with their offerings because of the popularity and marketing efforts
they already applied and established. Although consumers can choose from
multitude substitutes in terms of products and bakeshops, there is still this specific
brand that they will choose based on the satisfaction and convenience they received.
In today’s economic status, people will always search for less expensive products, this
is the edge of Zendy’s Slices because all their offering are in good quality just like the
other competitors but in affordable price.

Mission of Zendy’s Slices is “To satisfy the sweets craving taste of people with our
delectable cakes and cupcakes”. Despite of having lots of available substitute for the
products, Zendy’s still strive to be successful in this industry where consumers will
still choose them over competitors.

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 Unisite Subdivision, Del Pilar, City of San Fernando, 2000 Pampanga, Philippines

Porter’s Five Forces Model

THREAT OF NEW ENTRY
 Establishments of new
cake and pastry shops
 Strong customer
loyalty
 Strong brand
preference
 Lack of access to raw
materials

COMPETITVE RIVALRY
WITHIN AN INDUSTRY
BUYER POWER
SUPPLIER POWER  Number of competitors
 Effects of increasing
 Fluctuation price in the  Consumers can switch brand
competition
market of major easily
 Price edge of Zendy’s
ingredients in baking  Industry demand declining
Slices Customized
 Barrier to leaving the
Cakes products
market and industry
 Products are perishable

THREAT OF
SUBSTITUTES
 Cake and Pastry shops
offering the same
products and benefits
 Quality products at
the affordable price
 Edge of Zendy’s Slices
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Customized Cakes
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products
 Unisite Subdivision, Del Pilar, City of San Fernando, 2000 Pampanga, Philippines

Summary of Porter’s Five Forces of Competition

Porters Five Forces is a tool for analyzing competition of a business. The researcher used this model
to analyze the rivalry among competing firms, potential development of substitute products,
potential entry of new firms, bargaining power of suppliers and buyers. Based on the analysis above,
the researcher concludes:
 The researcher concludes that the intensity of rivalry is HIGH
 The researcher concludes that the threat of the new entrants is MEDIUM
 The researcher concludes that the bargaining power of supplier is MEDIUM
 The researcher concludes that the bargaining power of buyers is MEDIUM
 The researcher concludes that the threat of substitutes is MEDIUM

MARKET SITUATION
Pampanga, a province of Central Luzon in the Philippines, was established along the banks
("pampang") of a great river that was to shape its history-the Rio Grande de la Pampanga. Travelers
who passed the river's way brought home stories of a land with a majestic mountain jutting from its
navel, a place of scenic wonders, boundless resources and magnificent townscapes, peopled by a
proud brown race. What other magical views could our forefathers have seen from this river's fabled
"pampang"? Kapampangans have always had a taste for sweets.

The bakery industry in the vicinity of City of San Fernando includes around 100 commercial bakeries
with annual revenue of Php 1.5 million, along with roughly 50 retail bakeries with total annual
revenue of Php 1 million. The commercial side of the industry is highly concentrated, with the 50
largest companies generating 75% of revenue. On the other hand, the retail side is highly
fragmented, with the 50 largest companies generating around 15% of revenue. In the retail industry,
most companies operate just one facility. For companies of all sizes, profitability is strongly tied to
the efficiency of their operations. Large bakeries are able to reach economies of scale advantages,
while small bakeries can compete by offering specialty goods and offering superior local services.

Zendy’s Slices focuses on the middle- and upper-income markets. These market segments consume
the majority of pastry products. But Zendy’s Slices wants to establish a large regular customer base.
This will establish a healthy, consistent revenue base to ensure stability of the business. While
tourist traffic comprises approximately 35% of the revenues in Kapampangan’s delicacies. High
visibility and competitive products and service are critical to capture this segment of the market.
Because Kapampangan’s are fond of having any kind of celebrations, cakes and pastries are very
much in demand.
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Zendy’s Slices has identified its overall market to consist of people who have higher discretionary
income to indulge in and appreciate the exclusive creativity and a flair to spend on/consume
exclusive cakes that not only taste good and look good, and also reflect the owner’s passion to be
able to donate a part of the profits to chosen charities in cash or in kind. Geographically, the market
will essentially be in Kolkata and surrounding serviceable areas, given the nature of the product –
containing fresh food material and also intricate delicate designs and structure.

Demographic Profile of Buyers of Zendy’s Slices (by Age group and Gender)

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Market Trends
Over the last few years, the market for designer cakes has greatly expanded in most major cities of
Pampanga. There is a clientele that no longer wants to purchase at a bulk bakery or grocery shop,
instead they seek an item that will be personalized and add an additional memory to their event.
Zendy’s Slices joins this specialty market by attempting to lead this new trend in the City of San
Fernando, and by offering something new and different to the customers nearby serviceable areas.

Zendy’s Slices will succeed by offering customers high quality cupcakes, with a quirky and fun
approach. We will supply visually attractive cupcakes which have unusual flavors. Our competitive
edge is by adding more unique flavors of cupcakes and making more customized cakes. We will
invent new flavors and recipes regularly to keep our product offering fun and interesting and to
motivate our customers to return to our bakery. Our strategy focuses on building a customer base
by providing good customer experience and with extensive advertising in the neighborhood.

The table below displays the milestones that Zendy’s Slices would like to accomplish in the next
three years. Emphasis in the first year will be on advertising to make Zendy’s Slices an established
business in town

COMPETITIVE SITUATION
Brand (Portfolio)

"BAKED GOODIES WITH A TOUCH OF HEART"

A complete line of freshly home baked creations for all occasions. We

specialize in customized cakes, cupcakes and pastries. Our products are
made with the finest ingredients fused with love.

Market Positioning
Zendy’s Slices will conduct a research or study to have good understanding of the baking and
confectionery industry to help develop marketing strategies to achieve the business’ goal of winning
a larger percentage of the available market in City of San Fernando, and other towns within the
vicinity where they intend retailing their cupcakes and some other products.

In other to continue to be in business and grow, Zendy’s Slices must continue to sell their cupcake to
the available market, Zendy’s Slices must go all out to empower the sales and marketing team to
deliver the corporate sales goals. In summary, Zendy’s Slices will adopt the following sales and
marketing approach to sell our wide range of cupcake flavors;
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● Introduce the cupcake brand by sending introductory letters to residence, merchants and
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other stakeholders both in the City of San Fernando and in some other towns of Pampanga
 Unisite Subdivision, Del Pilar, City of San Fernando, 2000 Pampanga, Philippines

● Open the cupcake business with a party so as to capture the attention of residence who are
the first target market
● Engage in road show in targeted communities from time to time to sell our products
● List the business and products on yellow pages ads (local directories)
● Leverage on the internet to promote the cupcake brands
● Engage in direct marketing and sales
● Encourage the use of Word of mouth marketing (referrals)
Regardless of the fact that Zendy’s Slices community based cupcake business is a standard one with
a wide range of flavors and products that can favorably compete with other leading bakeshops in
Pampanga, it will still go ahead to intensify publicity for all of its products and brand. Zendy’s Slices is
going to explore all available means to promote.

Zendy’s Slices has a long term plan of opening outlets in various locations all around the province of
Pampanga and also to sell its franchise which is why it will deliberately build its brand to be well
accepted in the City of San Fernando before venturing out to other cities. As a matter of fact, its
publicity and advertising strategy is not solely for selling the products but to also effectively
communicate its brand.

When it comes to pricing for products such as cupcakes, there are no hard and fast rules, the prices
depend on the size and packaging. Generally, the prize for cupcakes and similar products like cookies
and confectioneries are affordable hence there is no need to employ any detailed strategies when it
comes to fixing price.

In view of that, the prices will conform to what is obtainable in the industry but will ensure that
within the first 3 to 6 months the cakes and cupcakes are sold a little bit below the average prices of
various cupcake brands in Pampanga. We have put in place business strategies that will help run on
low profits for a period of 6 months; it is a way of encouraging people to buy into the brands.

Distribution Channel Strategy

Zendy’s Slices is also planning to elect to serve niche markets such as wedding caterers.
Use website as an extension of its retail location. Include sharp pictures of the most
scrumptious cakes. Have an order page where customers can design their own cakes by
selecting size, style, frosting and decorations. Let them pick up the cake at your store or
your bakery, or deliver it to them upon request. As time goes on, develop a strategy for
expanding these channels. The more places your cakes are available, the more well-known
your bakery will become.

Competitive Strategy
Differentiating your cake product menu from those of your key competitors is part of the
strategy, but also consider pricing. Undercutting your competitors' prices can help bring in
new customers but negatively impact your margins. Customers should be willing to pay
more for cakes they can't get anywhere else.Zendy’s Slices will try a strategy of varying
prices and see what their customers' sweet spot is when it comes to the cost of a cake.
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The marketing message delivered through all communications with customers --

advertisements, website and store signage -- should focus on one or a few product and
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service features of the bakery clearly superior to competitors. It could become known as
 Unisite Subdivision, Del Pilar, City of San Fernando, 2000 Pampanga, Philippines

the chocolate lover's bakery, for example or go with current trends for healthier eating
and be known for your gluten-free cakes.

Expansion Strategy
When Zendy’s Slices has been established and running smoothly, we’ll proceed to start
thinking of new directions to take bigger venture. First step is to think outside the cake
pan and identify other popular baked goods that could presented to the customers,
expanding its total potential market. The skill at coming up with fresh ideas for cake styles
can help its design the own line of artisan breads, for example, which are high margin
items because of customers' perception that they are gourmet foods.

Competition

Almost everyone in business understands the principle of trying to offer something better than what
their competitors are offering. Gaining an advantage is the key to success and even survival. But
many of the so-called advantages that businesses rely on are not sustainable. They can be easily
copied, stolen or negated. Real competitive advantages — things like brand name recognition,
patented manufacturing processes or exclusive rights to a scarce resource — cannot be easily
copied. (Fuld, 1994)

Competitor’s Audit
Factor Zendy’s Slices Red Ribbon Goldilocks Julie’s Bakeshop

Price Varies as per Moderate Moderate Affordable

customization of
the customer

Quality Fair Good Good Fair

Selection Limited Wide selection of Wide selection of Limited

products products

Service Limited Variety of Services Variety of Services Variety of Services

Expertise 4 years 39 years 52 years 37 years

Company Since Zendy’s They have a very They have a very Not that popular
Reputation Slices are a good reputation good reputation but they don’t
startup we are yet as they are an as they are an have a bad
to be registered in established since established since reputation.
the minds of a lot 1980’s 1970’s
of customers
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Location Community-based Worldwide Worldwide Countrywide

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 Unisite Subdivision, Del Pilar, City of San Fernando, 2000 Pampanga, Philippines

Advertising None as of the They do not They do not Currently ongoing

moment require much of require much of massive
advertising since advertising since advertisement to
it’s a well- it’s a well- increase
established established popularity
business business

Part 2: STRATEGIC ANALYSIS

SWOT ANALYSIS
Zendy’s Slices and Customized Cakes

Strengths Weaknesses
 Affordability  Limited staff
 Customer loyalty  Financial constraints
 Adaptability to occasions, trends and  Low market share
design, needs and wants of the customers  Cannot accommodate large volume of
 Online market orders

Opportunities Threats
 Growing market  New/existing competitors
 Field selling  Consumer change in taste and preference
 Growing concern for healthier products  Volatile cost
 Tie-up with coffee/tea shops and other  Power interruptions
dine-in restaurant
Strengths
 Affordability
Zendy’s Slices work hard to keep their prices as competitive as possible. Since the business is not as
big as compare to its competitor, they choose then to start their business with an affordable price.
The business takes this as their competitive advantage because they can offer product and service
similar to their competitor at the price the market can afford.

 Customer Loyalty
One of the values that Zendy’s Slices give importance is keeping their customers at the heart of the
business and keeping their existing customers just important as getting new one. The business
believes that success will always depend on how the customer respond to their product and service.
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On these terms, Zendy’s Slice always make sure that they satisfy and fulfill all their customer’s
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request that resulted to customer loyalty. The business is a sole proprietor business and has only
 Unisite Subdivision, Del Pilar, City of San Fernando, 2000 Pampanga, Philippines

one branch. This makes the business focused on the quality of their products and good customer
relationship.

 Adaptability to occasions, trends and design, needs and wants of the customers
Zendy’s Slices is a business dealing with pastries and customized cakes. Since the said business
focused on cakes and pastries, they grant then all their customer request. They make sure that all
their customers are satisfied when it comes to the quality of their product, price and their service
itself. Customers may present their desired design and budget they can afford and Zendy’s slices
may give discounts and may match those request. If not, they can offer an alternative still fit to the
customer’s affordability.

 Online Market
Studies shows that there is this increasing numbers of customers that uses social medias and doing
research on mobile internet to carry out preliminary product and price research before making final
decision. On these terms, Zendy’s slices take this as their advantage to reach as many customers as
possible and target the online market. The business is able to provide product and service
information to their customer through internet marketing. Customers may always inquire on
products and communicate request at the time convenient to them.

Weaknesses
 Limited staff
One of the weaknesses that Zendy’s slices has is their business having limited staff. Since the said
business is a small and sole proprietorship business, they only afford then to have limited number of
staff that may help in doing cakes and transaction. This resulted to multiple task assigned to each
workers which may affect performance because of having multiple responsibility and engagement in
the business.

 Financial constraints
Available financial resources are always important in doing business. Having enough funds will help
the business to expand and operate more smoothly because of being capable to match competitor’s
activities. Having limited funds resulted to limited resources such as raw materials, equipment and
machines needed to finish products in the most convenient way. The business having limited funds
also resulted to fewer marketing activities compare to competitors which are effective in reaching
and attracting customers.

 Low market share

Since Zendy’s slices is a small and sole proprietorship business, this resulted then to low market
share. Because competitors have already abled to build strong brand name such as Red Ribbon,
Goldilocks, and Julie’s bakeshop, customers will always then familiar to these brands because of
their capability in doing more marketing activities towards customers. Business having low market
share consistently need to outperform their large rivals because if not, they have the tendency to be
17

out of the business and forced to withdraw from the fight.

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 Cannot accommodate large volume of orders

 Unisite Subdivision, Del Pilar, City of San Fernando, 2000 Pampanga, Philippines

Since Zendy’s slices has limited staffs, resources and equipment, this matter is then considered as
their weakness because they are incapable of accepting large volume of orders. This lose the
opportunity for the business to increase sale and establish wider network for customers wanting to
avail their products.

Opportunities
 Growing market
Despite growing at a relatively sluggish pace, baked goods still continues to offer growth
opportunities for manufacturers and retailers alike. Catering to indulgence trend in the some of the
fastest growing
markets in the world, pastries stand out as the biggest contributor to global growth (euromonitor
international, 2014). The report shows that there is this increasing demand on cakes and pastries,
Zendy’s slices took this opportunity of growing market to generate sales. The business ensures the
quality of their products and service to maintain existing customers and attract new ones by
satisfying their requests, needs and wants.

 Field selling
Zendy’s slices deals with field marketing or selling. On these terms, the business is able to have
direct contact with their target customers and can able to match all their request. Keeping quality
products and gaining customer loyalty are always the priority of the business. By having direct
contact especially in distributing and selling, the business will be able to see then their current
situation in the market. Field selling opens opportunity to know more about the customers and can
also strengthen customer relationship which can result to word of mouth, the most powerful tool in
marketing.

 Growing concern for healthier products

49% believe they are overweight, and 50% are trying to lose weight. 88% say they are willing to pay a
premium for foods with healthy attributes. Developing markets lead the way in desire for health
attributes. The obesity crisis and consumer desire to become healthier could be a growth driver for
manufacturers who better align their offerings to consumer needs and desires for healthier food.
Roughly 75% of global respondents believe they "are what they eat" and nearly 80% are actively
using foods to forestall health issues and medical conditions, such as obesity, diabetes, high
cholesterol and hypertension. (nielsen, 2015). On these terms, Zendy’s slices took this opportunity to
offer their healthy cakes and pastries to customers. The business ensures the quality of their
offerings from raw materials up to finished product. Their healthy cakes such as carrot cake and etc.
may attract those customers with healthy life style.

 Tie-up with coffee/tea shops and other dine-in restaurant

Tie-up with coffee or tea shop and other dine-in restaurant opens opportunity for the business to
increase sales. Zendy’s slices being partnered with different shops will also strengthen its brand
name. In addition, the business will able then to increase network and popularity to the market.
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Threats
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 New/Existing competitors
 Unisite Subdivision, Del Pilar, City of San Fernando, 2000 Pampanga, Philippines

Cakes and pastry products are always in demand with Filipinos, as one study says that Philippines is a
country of sweets. Most people have an affinity for sweets. It is common to give in to our cravings to
satisfy our own sweet tooth. There are arrays of sugar filled products that can do the job, from
pastries to candies to chocolates. To say Filipinos have a sweet tooth would be an understatement
due to the fact that every region boasts its own sweet dessert recipe (The Philippines: A Country of
Sweets, 2018). With this increasing demand with sweet delicacies, this opens opportunity to small
cake and pastry shops to open business. Increasing demand also resulted to increasing competition.
Small shops such as Zendy’s slices aim to attract new customer and strengthen relationship with
existing customers by offering quality products despite of the existence of strong and new
competitors.

 Consumer change in taste and preference

Consumer change in taste and preferences is one the of the threat of Zendy’s slices. Consumer may
change their demand, needs and wants overtime. It is quite difficult for the business to adapt to
these changes due to limited resources available. Not being able to alter to these changes may harm
the business especially its operations and its sales.

 Volatile cost
Sudden change in cost especially with the raw materials may affect the business operations and
sales. Increase in prices especially with main materials in baking such as flour and sugar may lessen
profit of business. It is considered a threat in a way consumer may find an alternative with cakes and
pastries during those times of sudden increase in price.

 Power interruptions
Since Zendy’s slices is a small cake shop, power interruption is then considered a threat for the
business. Unlike its strong competitors such as Red Ribbon, Goldilocks and Julies bakeshop where
they can able to deal with power outage because of their available resources, Zendy’s slices
considers that issue as their threat since they now operate as home based cake and pastry shop and
rely only on the electricity of their current location. Electricity is always important in the business
since they are using different machines and equipment in baking. Power interruptions or sudden
power outage may delay operations which may harm the credibility and sales of the business.

SWOT STRATEGY MATRIX

Internal Strengths Internal Weaknesses

ZENDY’S SLICES CUSTOMIZED CAKES
1. Affordability 1. Limited staff
2. Customer loyalty 2. Financial
3. Adaptability to constraints
occasions, trends and 3. Low market share
design, needs and wants 4. Cannot
of the customers accommodate
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4. Online market large volume of

orders
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 Unisite Subdivision, Del Pilar, City of San Fernando, 2000 Pampanga, Philippines

External Opportunities (SO Strategies) (WO Strategies)

1. Growing market 1. Offer affordable 1. Improve financial
2. Field selling products to capture the stability of the
3. Growing concern for growing market of cakes company by tying
healthier products and pastries (S1, O1). up with coffee/tea
4. Tie-up with coffee/tea 2. Will focus on the request shops and other
shops and other dine-in of customers to satisfy dine-in restaurant
restaurant their growing concern (W2, O4).
for healthier products 2. Improve market
(S3, O3). share by taking
3. Taking advantage on advantage on the
online market that will growing market of
participate in the field cake and pastries
selling (S4, O2). (W3, O1).
3. Increase profit by
pursuing the
growing market
and offering
healthier products
(W2, O1,O3).

External Threats (ST Strategies) (WT Strategies)

1. New/existing 1. Maintain the 1. Hire more staff to
competitors affordability of products be competent and
2. Consumer change in to lead from avoid threats of
taste and preference new/existing competitors in
3. Volatile cost competitors in capturing serving the market
4. Power interruptions the market (S1, T1). (W1, T1).
2. Using good customer 2. Improve financial
relationship and resources of the
customer loyalty to company to keep
overcome threat of up with the
competitors (S2, T1). competition and
3. Increase effort on volatile cost of
satisfying and fulfilling materials (W2, T1,
the needs, wants and T3).
request of customers to 3. Increase effort on
adapt to their changing R&D to adapt to
taste and preferences on consumer change
cake and pastry products in taste and
and to have an edge over preferences to
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competitors (S3, T1, T2). improve market

share (W3, T2).
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 Unisite Subdivision, Del Pilar, City of San Fernando, 2000 Pampanga, Philippines

SO Strategies
1. Offer affordable products to capture the growing market of cakes and pastries (S1, O1).

In order to capture the growing market of cakes and pastries, Zendy’s slices will use their edge of
having affordable products. Customers will always choose to have quality products at the price
they can afford. In line with this, the business will maintain their pricing strategy to satisfy and
fulfill the demands and request of every customer.

2. Will focus on the request of customers to satisfy their growing concern for healthier products
(S3, O3).

Consumers seek fresh, natural and minimally processed foods. Beneficial ingredients that help
fight disease and promote good health are also important (Nielsen, 2015). As stated in the book
“We are what we eat”, healthy eating trends around the world nowadays. To deal with this
matter, Zendy’s slices will focus on the request of customers. Since the business offers
customized cakes and pastries, they can comply with the demands of customers especially with
their healthy cakes available on the shop.

3. Taking advantage on online market that will participate in the field selling (S4, O2).

Online marketing gives business owners the freedom to advertise and promote their products or
services and receive immediate response. Business owners can reap the benefits of this method
of marketing as it is inexpensive and easy to start (optimus online thinking, 2013). It is obvious
nowadays that there is this big impact of internet and social medias in businesses. With the use
of the said sites, it is now easy for business ventures to look and attract customers. In regard to
this matter, Zendy’s slices will increase effort on reaching the online market who can participate
in their field selling. It is always the priority of Zendy’s slices to give importance to field selling as
they have the chance to meet and have face to face interaction with their customers.

ST Strategies
1. Maintain the affordability of products to lead from new/existing competitors in capturing the
market (S1, O1).

One of the strengths of Zendy’s slices is their affordable price when it comes to their products.
Since the said business is not as big as compare to its competitors where they have fixed price
with their products, the business can offer then discounts, alternatives and options that can
match the budget and request of their customers. In line with this, they will continue to maintain
having affordable price to compete and have an edge over new/existing competitors.

2. Using good customer relationship and customer loyalty to overcome threat of competitors
(S2, O1).

Loyal customers insulate the company from the competition. For one reason or another, loyal
customers aren't checking prices and products against the competition as diligently as other
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customers. One of the priority of Zendy’s slices is to offer quality products at an affordable price.
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And in line with this, they receive customer loyalty in return. Good customer relationship of the
 Unisite Subdivision, Del Pilar, City of San Fernando, 2000 Pampanga, Philippines

company also resulted to word of mouth, and word of mouth is one of the most effective way in
marketing. As the business receives customer loyalty, it is then not so difficult for the company
to compete with their competitors.

3. Increase effort on satisfying and fulfilling the needs, wants and request of customers to
adapt to their changing taste and preferences on cake and pastry products and to have an
edge over competitors (S3, O1,O2).

Consumer change in taste and preferences is inevitable as products and services improve
overtime. And in line with these improvements, the demand of customers also changes and
adapt to the modernization. Since Zendy’s slices offer options depends on the request of
customers, they can match every requirement of customers with their products which can help
the company to avoid threat and have an edge over competitors.

WO Strategies
1. Improve financial stability of the company by tying up with coffee/tea shops and other dine-
in restaurant (W2, O4).

Tying up with coffee/tea shops and other dine-in restaurant can improve financial stability of the
business. Since tying up requires regular orders, this resulted then to regular and increased
sales. Improved financial stability will open new opportunities for Zendy’s slices as they can
invest more on equipment and other materials needed to expand and improve the business
operations and transactions.

2. Improve market share by taking advantage on the growing market of cake and pastries (W3,
O1).

Ability to capture growing market will strengthen brand name and popularity of the business. It
is always the main goal of Zendy’s slices to succeed in their chosen industry. With passion in
doing business and offering quality products, they can able to capture the market and improve
their market share.

3. Increase profit by pursuing the growing market and offering healthier products (W2, O1, O3).

Being able to capture and satisfy market will definitely increase profit and sales of the business.
With proper strategies and improved products, Zendy’s slices can be competent in the industry.
The business will strive to adapt to the growing concern of customers to healthier products by
having alternatives with their materials used in baking cakes and pastries. They will also fulfill
the requirements of customers to gain their trust and loyalty.

WT Strategies
1. Hire more staff to be competent and avoid threats of competitors in serving the market
(W1,T1).
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Having enough number of staff is always important in a business, as they were able to assign
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specific task according to their expertise to better coordinate work engagement. Zendy’s slices
 Unisite Subdivision, Del Pilar, City of San Fernando, 2000 Pampanga, Philippines

having a lot of competitor is a big threat as some of them already build strong brand name and
have enough workers such as Red Ribbon, Goldilocks and Julie’s bakeshop. The business is
suffering on having limited staff because of limited financial resources available and these
resulted then to limited capabilities. One of the best strategy to keep with the competition is to
have Zendy’s slices enough staffs to improve business operations.

2. Improve financial resources of the company to keep up with the competition and volatile
cost of materials (W2, T1,T3).

It is impossible to achieve long-term and short-term goals without effectively managing finances.
Inefficient management of finances could lead to liquidity shortages. The business need funds
for business growth, market competition, and to keep business operational and maintain
customer base (davoren). Improve financial resources will help Zendy’s slices to compete with its
competitor, as they will able to invest on materials and equipment needed to do business
operations easier and faster. In addition, having stable and available funds will help the business
to adapt to sudden increase in price of materials and can able to sustain expenses despite of the
volatility of cost of raw materials.

3. Increase effort on R&D to adapt to consumer change in taste and preferences to improve
market share (W3,T2).

In order to adapt to consumer change in taste and preferences, it requires deep research and
development. It is recommended for Zendy’s slices to undergo through critical research to know
the latest trend and what are the current demands of customers in order to stay perfectly in line
with the competition in the industry. Understanding what are the needs and wants of customers
may resulted to being capable in serving and capturing as many customers as possible. And
having increased and satisfied customer will help the company to improve market share.

Part 3: GOALS AND OBJECTIVES

The purpose of this marketing plan is to seek strategy and solutions to produce business viability for
a small-scale local cake businesses, by studying a new home-run start-up. In December 2014, the
peak season of celebrations, right before Christmas & New Year set in, the owner of Zendy’s Slices,
was overwhelmed with the amount of work that needed to be done to keep all the business
functions running smoothly. Friends and family offered to pay for her goodies and promote her work
also. From simple, healthy bakes, she forayed into cake decorating. While she always loved home-
baking, making and decorating special celebration cakes was a completely different level- it was not
just the taste, but the cake had to have that initial visual impact that makes it a showstopper for any
event.
To be the well-known cake shop in the City of San Fernando by 2018, Zendy's Slices is in part of their
noble mission of satisfying customers' sweet craving, being well-known means, many to buy and
many will be served happy tooth and satisfied cravings.
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As a community based cupcake making and retailing business is to become the number one choice in
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town and also to be amongst the top leading cupcake baking and retailing companies in City of San
 Unisite Subdivision, Del Pilar, City of San Fernando, 2000 Pampanga, Philippines

Fernando by building a cupcake baking and retailing business that will grow from an in – house baker
to a standard bakery whose products can be found in different locations all around Pampanga.

Medium Term Objectives (2 to 4 years)

The goal for Zendy’s in the medium term is to have net positive cash flows by the third year
of operations, in order to have the ability to sustain operations, while maintaining its brand image.
Zendy’s will do this by controlling costs and implementing the marketing plan to achieve the sales
targets.

Long Term Objectives (5 to 7 years)

The long term goal is to achieve a 10 % profit by selling a product mix of 35% cupcakes, 20%
brownies, 25% cookies, and 35% cakes by the fifth year of operations, as well as to maintain the
brand image. This will be achieved through obtaining the necessary sales product volume and by
controlling costs. These goals are to be reviewed continuously and updated as circumstances in the
business and industry change
The business plan will achieve these goals and objectives by focusing on having the
appropriate team in place, continuously assessing the competition, providing a reference for Zendy’s
sustainable competitive advantages as well as focusing on the target markets and how to provide
value to these customers. In addition, it provides a plan to manage inventory levels to keep costs
down, as well as achieve the production and sales targets necessary to provide the required returns.

Part 4: RECOMMENDATIONS
Market Segmentation

Demographic segmentation criteria include age, gender, family status and income. Younger
customers may order pastries from a bakery, while families may drop by for breads and rolls. Orders
for tiered cakes for birthdays and other special events may come from high-income households. The
product mix and pricing strategy would depend on the location and the competitive environment.
For example, a bakery in an upscale neighborhood may decide to offer more pastries and custom
cakes in its stores than breads and rolls, which should mean higher margins but lower volumes. In a
working class neighborhood, a bakery may offer more bread, rolls and other items in the low end of
the price range than pecan pies, custom cakes and other expensive items. The margin on each item
may be less, but the bakery should generate high profits if it sells enough items.
(Basu, 2018)

The City of San Fernando has a total population of 285,912 based on the census made by
National Statistics Office (NSO) in May 2010, up by 64,055 that indicated a growth rate of 2.21
percent in the past five (5) years. The high growth rate in population is accounted for not only by the
natural increase in population but also due to in-migration on the account of the City's central
location in the region.
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Household Size. Average household size in the City reported by NSO in 2003 and 2007 were
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 Unisite Subdivision, Del Pilar, City of San Fernando, 2000 Pampanga, Philippines

5.00 and 4.96, respectively. The household size is the sole determinant, in an inverse fashion, of per
capita income. At a given income, individual member income decreases as household size increases.
Gender and Age Distribution. There is an almost equal distribution of male (50.4%) and female
(49.6%) population. Males outnumber females to a little extent. There has been a remarkable
change in roles played by men and women in the society. In particular, women, just like men, have
also been “bread winners” for the last several decades, i.e., they have become active members of
the labor force. Therefore, it can be construed that productivity relative to the labor force is not
affected by gender distribution since no particular gender, male or female, can be considered more
productive than the other.

In terms of age distribution, there is a higher proportion of the population belonging to the younger
age groups (0-29 years old – 56.1%) than in the older age groups (30 or older – 43.9%). The
difference in proportions is also pronounced between the 0 to 14 - year old group (27.4%) and the
50 years old or older group (15.7%).

Special Events
Special events can be a major market segment for Zendy’s Slice. Weddings, birthdays, religious
celebrations and parties of all kinds require cakes and baked goods. Zendy’s can partner with party
venues in the area to ensure that customers know what they have to offer when the time comes.
Display windows and cases show what options the consumer has, and they help your market
segment find you. Your marketing can consist of cake and special event promotions to let neighbors
know where to come for their holiday and event goodies.

Restaurants
Restaurants often purchase their breads, pastries and cakes from an outside vendor rather than
making them from scratch in-house. Local bakeries are one of the first places restaurants look for
possible suppliers, as the quality of the goods are typically better than that provided by large
corporate distributors. Zendy’s Slice can customize orders and fill them at the last minute if
necessary. Zendy’s Slice can visit local restaurants and cafes with wholesale price lists and
information about the full line of available goods. Delivery is a requirement in most cases, but our
market segment can grow significantly if we have a few successful restaurants making orders every
night.

Target Market Identification

When it comes to retailing cupcakes, there is indeed a wide range of available customers. In essence,
our target market can’t be restricted to just a group of people, but all those who love pastries and
those who would want to try it out.

One thing is certain; there are no restrictions to the demographic and psychographics composition
of the target market for pastries. Adults and children all consume pastries; the demography is all
25

encompassing which is why you can find cakes been served in wedding receptions, birthday parties,
children’s parties, school graduation parties, baby shower, and a whole lot of events and parties.
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 Unisite Subdivision, Del Pilar, City of San Fernando, 2000 Pampanga, Philippines

This goes to show that the target market for cake is wide and far reaching, you can create your own
make niche yourself to serve a specific purpose.

In view of that, we have conducted our market research and we have ideas of what our target
market would be expecting from us. We are in business to engage in wholesale distribution and to
retail a wide range of cake flavors to the following groups of people;

● School Children
● Sport Lovers / Fans ( In Stadiums during live sport events)
● International and Local Tourists
● Corporate Organizations
● Families / Households in and around your neighborhood
● Churches and other religious centers
● Campuses
● Parks
● Event Planners and Wedding Planners
● Everyone who resides in our target locations.

Value Proposition
Zendy’s Slice we focus on both design and flavor at the same time. We believe beauty and
taste should be directly proportional to each other. We don't believe in preservatives so we don't
add any of it. Other things you would notice is that you won't see sprinkles, drapes, or heart-shaped
sugar decorations that have no function other than to make a cake look pretty. Everything you see
on our cakes contributes to the flavor and texture balance of the cake.
Our cupcakes and cake rolls are baked in small batches to ensure freshness, quality and
consistency. Nothing is mass produced and each cake is freshly baked, and handmade individually, in
the kitchen, every day. With our true focus on flavor, you can be assured of fresh, unique and
natural cakes in every bite, every time!

Positioning Statement
The Mission of Zendy’s Slice is to produce quality bakery products cost effectively; in an environment
that is safe, clean and friendly for our employees and community. The integrity of our company is
based on the principles of quality products, satisfied customers and consumers, conscientious
employees, and our commitments to innovative growth and development.

STRATEGIES AND ACTION PLANS

Zendy’s Customized Cakes and Slices is hoping to be an active part of the community. It should be
the place where people want to go to share nice moments around delicious delicacies. Moreover,
we want our customers to think about our bakery for their lifetime events. Therefore we need to
give our customers the feeling that we are part of their family and their daily life.

Proposed Location
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• We will convert our existing location to a complete storefront or in a more commercialized area
• We have identified a seller for another bakery site where we plan to move our production
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operations.
 Unisite Subdivision, Del Pilar, City of San Fernando, 2000 Pampanga, Philippines

Pricing Promotion
To achieve the goals, Zendy’s Slices need to first get the neighborhood know about them. This is why
word of mouth is our primary strategy. To achieve this, they will focus on the following:
● Word of mouth campaign through distribution of flyers in neighborhood
● Being very active on Social media (Facebook and Twitter especially)
● Offer incentives for reviews (online on Yelp and Google) and constructive feedback
(online/in stores)
● Advertise promotion to private network via social networks like Twitter, Facebook etc.,
● Promotions (online, newspapers to bring in new customers, in stores for repeat customers)
● Fidelity cards, including support on smartphones and devices to reward repeat customers
● Announcement of business expansion with special promotions on first week of new
operations. e.g., two cupcakes for price of one
● Loyalty Rewards (Birthday promotions, Fidelity cards including smartphone support and
occasional special emails to families wishing them on annual recurrence like birthdays etc.,)

Distribution
As of the moment, Zendy’s Slices sales are done on site, but as soon as the business expand it plans
to deliver to corporate customers. At this point, all our distribution is handled by the owner.

A cost leadership management strategy involves being the lowest cost provider of your products. For
a Zendy’s Slices, this involves achieving economies of scale. To achieve economies of scale, it will
need to produce a high volume of cakes. This will allow to increase worker productivity through
division of labor and save money by purchasing ingredients in larger quantities, giving you a greater
ability to offer your products for a competitive price.

Operating Plan
The current storefront site in Del Pilar, City of San Fernando Pampanga will be the new production
unit (PU), while the previews storefront in Robinsons Starmills Pampanga will expand to include a
restaurant or a cafe. All baking equipment in Del Pilar (PU). PU will produce all baked and prepared
foods for our catering and store front business including breads, cupcakes, cookies and special order
cakes. PU also handles procurement and delivery. PU site includes a small space for marketing and
administration department. Storefront offers dine-in and to-go foods, including baked and prepared
foods from PU, Zendy’s Slices will add packaged snacks, bottled beverages, sandwich, salads, freshly
brewed coffee and tea.
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Inventory Control
• All raw materials procured on need basis with 2 weeks look ahead period
• Productions start only 24 hours prior to delivery date
• Inventory review every Sunday to ensure sufficient stocking and avoid wastage due to negligence
• All prepared foods that that reach 75% of shelf life are backed up inventory and sold at 30%
discount
• If production is complete for cancelled orders, customer is charged
• Backed up inventory due to cancelled orders are reused for flash promotions

Integrated Marketing Communications Plan

Zendy’s Cake and Slices Objectives & Strategy

At the end of one year:
New customers will increase by 150% Campaign Objectives
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Marketing Communications Objectives

This IMC Plan for Zendy’s Slices Customized Cake will achieve the following objectives at the end of
one year:
 Awareness of Zendy’s Slices Customized Cake among local residents in San Fernando,
Pampanga will increase by 3%
 Zendy’s Slices Customized Cake will be thought of as a leader in homemade baked goods in
the San Fernando area.
 Customers will recognize the benefits of our service and product and become loyal
purchasers.

Financial Objective At the end of one year:

Overall bakery sales will increase by 30%

Marketing Communication Strategy:

Females ages 35 to 55 who live in San Fernando area are the target market for this campaign. She is
married and unmarried with children who are in school, ranging from grade school to college
through adulthood. She appreciates a work-life balance and is self-sufficient. She’s loyal to her
brands and technological savvy. She uses the Internet to communicate with friends and family
through social media. She embraces the family time she has and places an importance on personal
life. She therefore wants an intimate relationship with her brands. She’s concerned with her health
and interested in healthful eating but not afraid to treat herself. Targeting these women of
Generation X can aid in achieving the overall campaign goal. Over 51% of the female population
living in San Fernando are between the ages of 18 and 64 (which the target market falls into). She is
part of the residents who spend over Php 35,000 on retail sales each year in the local area. Her
household comprises of 2.3 persons to which over Php 47,000 is brought in to. Therefore, this target
market encompasses women willing to spend money wisely on brands she loves and that benefit
her.

Target Market
Mindy just got out of work. It’s time to hit the gym. But it’s also Friday which means it’s time to relax
and treat herself. She doesn’t want to ruin all her progress she’s made in the gym. But she can’t say
no to her nagging sweet tooth. When it’s time to indulge, she wants to know exactly what she’s
putting in her body, where it came from and when it was made. She’d rather have a homemade
cookie or cupcake but between work and running a household with kids, she doesn’t have the time.
Oh how she would love a comforting, ooey-gooey melty chocolate chip cookie. It’s all about
balancing health with self- indulgence for her. Mindy actually prefers cookies and breads over
cupcakes, cake, pastries and muffins. When she indulges two to three times a month, she’ll spend
about Php 250 to Php 500. Almost as often, she will purchase baked goods for parties and holidays.
What triggers her purchases are posts from friends or family on social media, particularly Facebook.
Mindy definitely raves about what she eats to her friends and family. Sometimes she shares, other
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times she just makes them jealous with her pictures and descriptions of the goods. Zendy’s Slices
Customized Cake is Mindy’s choice because she gets the homemade treat from scratch that is made
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with only fresh, quality ingredients. She’s formed a relationship with the bakery and trusts where
 Unisite Subdivision, Del Pilar, City of San Fernando, 2000 Pampanga, Philippines

her treats come from. The best part is she doesn’t have to make it or break the bank for her treat.
She appreciates the convenience of delivery.

Positioning
For middle-aged women balancing health with a sweet tooth, Zendy’s Slices Customized Cake
provides convenient, homemade baked goods without the work for self-indulgence. Small and
convenient means intimate relationships with the consumer.

Marketing Mix
Product
Zendy’s Slices Customized Cake offers homemade baked goods such as cupcakes and cookies. A
small, homemade bakery means goods are fresh, local and made personally. Consumers are
unaware that the bakery exists and the ability to cater their needs.

Promotion
Zendy’s Slices Customized Cake will be the cookie lady of choice for consumers that want a little
indulgence from a great tasting product without breaking the bank. Tactics will encourage and
facilitate word of mouth marketing.

Place
Zendy’s Slices Customized Cake will target middle-aged consumers in San Fernando area. We will
need to gain awareness and sales locally first before expanding to other markets.

Price
Affordable baked goods. With prices rivaling our competition we will become more profitable with
greater awareness and increased sales.

Campaign Tactics - Creative Brief

What is our goal? Increase awareness in San Fernando area to boost sales for a home bakery.
Who are we talking to? Self-indulgent female residents aged 35 to 55.
What do they currently think? I have no idea what Zendy’s Slices Customized Cake is. There’s not
many bakeries around so I usually just grab something from the supermarket when I need a sweet
tooth fix. Sometimes I don’t indulge because I don’t know what’s in my treats.
What do we want them to think? Zendy’s Slices Customized Cake is the most convenient way for me
to get exactly what I want those few times I want to indulge. The baked goods taste like something
my grandmother made and I trust where they came from.
Single most persuasive idea: Homemade sweets without the work exactly when you want them.
Why should they believe it? You can indulge without sacrificing time, taste or money and you know
exactly where your goods came from.
Any mandatories? Include contact information.
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Advertising
Zendy’s Slices Customized Cake will place an ad in San Fernando down town, Schools. The ad is seen
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by thousands of local consumers. Consumers will chose Zendy’s Slices Customized Cake the next
 Unisite Subdivision, Del Pilar, City of San Fernando, 2000 Pampanga, Philippines

time she orders baked goods because the word “homemade” will resonate with her. Zendy’s Slices
Customized Cake will need to purchase a banner for use at local events. This banner will also be used
for display at sampling events and mimic a larger version of the business card. Consumers will see
the word “homemade” and know Zendy’s Slices Customized Cake goods are better for her.
Business Cards

Zendy’s Slices Customized Cake will revamp existing business cards. Utilizing a non-traditional
business card invokes curiosity and decreases likelihood to be passed over. Business cards will be
handed out at sampling events, with each order and given to loyal customers to share with their
family and friends. Business cards will increase awareness of the bakery, spur positive word of
mouth around the unique design and lead to possible intent to order, it will remind the consumer to
choose Zendy’s Slices Customized Cake because these homemade baked goods are better for her.

Promotions
Zendy’s Slices Customized Cake will implement an exclusive Cookie Club. Currently, the only way to
receive baked goods from Zendy’s Slices Customized Cake is through pre-order which we will use as
a strength. Initial members will be hand-picked from current, loyal customers. We will send them an
email to join the club that doubles as a delivery service. This exclusive service ensures the
customer’s customized baked goods are delivered to her door once a month for Php 400.00 per
order for a 12-month membership. Customers have a choice to pick indulgent flavors or healthier
options. Since the treats are homemade, they are easy to freeze. Consumers can share them, eat
them all at one or save the rest for later when she’s indulging two to three times per month. We’re
catering to her love of convenience. She wants them because they are homemade. These club
members will be asked to share about the exclusive club on Facebook and through word of mouth to
family and friends. The only way to gain membership is through referral by a current Cookie Club
member or by invitation.

Public Relations
Cultivate exclusive, homemade feel Cakes.

Strategy: Establish and expand relationships with local residents

By sampling at the local food festival, Zendy’s Slices Customized Cake can increase awareness among
hundreds of local residents that the event attracts. By being at the event, Zendy’s Slices Customized
Cake is associated as one of the best bakeries in town. Customers will sample our baked goods and
decide to purchase in the future because she can taste the homemade difference. Participating in
the event will also increase media exposure as the bakery will be listed on vendors participating in
the event and possibly being featured in the local newspaper.
Sampling at School Zendy’s Slices Customized Cake will bring samples to Schools PTA meetings. The
purpose is to target our primary audience where they conduct their business and activities. Given
PTA meetings take place after school at 3:30 p.m. and include parents, teachers and students,
Zendy’s Slices Customized Cake is providing a treat when most consumers need a treat. Even if the
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samplings do not lead to sales, it will get consumers talking. The next time our consumer needs
baked goods, Zendy’s Slices Customized Cake will be thought of because she wants homemade
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baked goods that are better for her. Consumers love to try new things, love free food and will look
 Unisite Subdivision, Del Pilar, City of San Fernando, 2000 Pampanga, Philippines

forward to the provided sweet treat. The samplings can help facilitate word of mouth among local
residents. The benefits of product sampling are generating consumer trial, encouraging
conversation, creating brand awareness and supporting the total marketing campaign. All four lead
to purchase conversion. 81 percent of consumers would try a product after receiving a sample.
Product samples give the consumer an opportunity to test a brand helping to attract new customer
and convert competitive users. If they love the product, they will talk about it and purchase.

Word of mouth
78 percent of survey respondents through my primary research said posts on Facebook from
companies, family and friends as well as pictures influence their purchases. Consumers are also
more aware of where their food comes from and choose wisely what they spend their money on.
Albert reported that 92 percent of consumers believe recommendations from friends and family
over all forms of advertising. Therefore, generating positive word of mouth is crucial to achieving the
overall campaign goal. Our campaign tactics aim to increase positive word of mouth for the bakery.
Through in person or online, word of mouth can help increase awareness and lead to sales. Zendy’s
Slices Customized Cake will encourage customers to share their experience on social media sites
with friends, families and coworkers

Digital & Social Media Marketing

Strategy: Engage consumers online

Content Marketing
Zendy’s Slices Customized Cake is fairly quiet on Facebook and it is currently the only channel the
bakery uses. Facebook is the social media platform our target market is most active on and needs to
be capitalized on it. When awareness increases for the bakery, consumers will begin to search the
Internet for more information. It is crucial Zendy’s Slices Customized Cake has current and relevant
information to add value to these consumer’s lives. Content will include photographs of the product,
recipe sharing, industry news and blurbs from the owner. Content should be posted at least five to
ten times per week. Content seeks to engage consumers, entice them to purchase and remind them
that Zendy’s Slices Customized Cake goods are better because they are homemade.
Squarespace.com Zendy’s Slices Customized Cake needs to create a website so when customers
search the Internet for the bakery they can be directed to a site where they receive all necessary
information. We will use squarespace.com because Php 500 per month guarantees 20 pages,
galleries, a blog with unlimited bandwidth, unlimited storage and two contributors. It allows fully
integrated e-commerce, selling of one product, accepting donations, a mobile website and store as
well as a custom domain. This platform is simple to use and already has custom templates to plug in
information. We do not have to be web developers to create our site and can have full control over
it. The website will include a homepage, product page, contact information and a blog page where
recipes from Facebook content marketing are housed. We will also put Google Analytics on the site
for tracking where viewers are from.
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Campaign Timeline
April Jan.
2018 May June July August Sept. Oct. Nov. Dec. 2019 Feb. Mar
Cookie Club

Content
Marketing

PTA Samplings

Website

Budget
Samples for Schools Php 2000.00
Banner 1500.00
Business Cards 1700.00
Website 4,800.00
Total PHP10,000.00
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XI. Implementation and Evaluation

1. Current and Proposed P/L

YEAR 1 Annual Qty Selling Price Total

Revenues Cake 2,000.00 380.00 760,000.00
Cupcake 2,000.00 300.00 600,000.00
Brownies 2,000.00 220.00 440,000.00
Cookies 2,000.00 540.00 1,080,000.00
Total Revenues 2,880,000.00

Cost of Good Sold Annual Qty Cost

Cake 2,000.00 283.66 567,320.00
Cupcake 2,000.00 223.33 446,660.00
Brownies 2,000.00 168.33 336,660.00
Cookies 2,000.00 413.45 826,900.00
Total COGS 2,177,540.00

Gross Profit 702,460.00

Operating expense:
Marketing expense 10000
Utilities Expense 24000
Salaries Expense 118940
Depreciation expense ( Oven) 4299 (21495/5)
Depreciation expense ( Mixer) 3200 (16000/5)
Taxes and License expense 3867
total Operating expense 164306

operating income 538,154.00

Taxes 56,196.80

Net income 481,957.20

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YEAR 2 Annual Qty Selling Price Total

Revenues Cake 2,200.00 380.00 836,000.00
Cupcake 2,200.00 300.00 660,000.00
Brownies 2,200.00 220.00 484,000.00
Cookies 2,200.00 540.00 1,188,000.00
Total Revenues 3,168,000.00

Cost of Good Sold Annual Qty Cost

Cake 2,200.00 283.66 624,052.00
Cupcake 2,200.00 223.33 491,326.00
Brownies 2,200.00 168.33 370,326.00
Cookies 2,200.00 413.45 909,590.00
Total COGS 2,395,294.00

Gross Profit 772,706.00

Operating expense:
Marketing Expense 10000
Utilities Expense 24000
Salaries expense 118940
Depreciation expense ( Oven) 4299 (21495/5)
Depreciation expense ( Mixer) 3200 (16000/5)
Supplies expense 1000
Taxes and License expense 3867
total Operating expense 165306

operating income 607,400.00

Taxes 61,816.48

net income 545,583.52

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YEAR 3 Annual Qty Selling Price Total

Revenues Cake 2,400.00 380.00 912,000.00
Cupcake 2,400.00 300.00 720,000.00
Brownies 2,400.00 220.00 528,000.00
Cookies 2,400.00 540.00 1,296,000.00
Total Revenues 3,456,000.00

Cost of Good Sold Annual Qty Cost

Cake 2,400.00 283.66 680,784.00
Cupcake 2,400.00 223.33 535,992.00
Brownies 2,400.00 168.33 403,992.00
Cookies 2,400.00 413.45 992,280.00
Total COGS 2,613,048.00

Gross Profit 842,952.00

Operating expense:
Marketing Expense 10000
Utilities Expense 24000
Salaries Expense 118940
Depreciation expense ( Oven) 4299 (21495/5)
Depreciation expense ( Mixer) 3200 (16000/5)
Taxes and License expense 3867
total Operating expense 164306

operating income 678,646.00

Taxes 67,436.16

net income 611,209.84

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YEAR 4 Annual Qty Selling Price Total

Revenues Cake 2,600.00 380.00 988,000.00
Cupcake 2,600.00 300.00 780,000.00
Brownies 2,600.00 220.00 572,000.00
Cookies 2,600.00 540.00 1,404,000.00
Total Revenues 3,744,000.00

Cost of Good Sold Annual Qty Cost

Cake 2,600.00 283.66 737,516.00
Cupcake 2,600.00 223.33 580,658.00
Brownies 2,600.00 168.33 437,658.00
Cookies 2,600.00 413.45 1,074,970.00
Total COGS 2,830,802.00

Gross Profit 913,198.00

Operating expense:
Marketing Expense 10000
Utilities Expense 24000
Salaries Expense 118940
Depreciation expense ( Oven) 4299 (21495/5)
Depreciation expense ( Mixer) 3200 (16000/5)
Taxes and License expense 3867
total Operating expense 164306

operating income 748,892.00

Taxes 73,055.84

net income 675,836.16

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YEAR 5 Annual Qty Selling Price Total

Revenues Cake 2,800.00 380.00 1,064,000.00
Cupcake 2,800.00 300.00 840,000.00
Brownies 2,800.00 220.00 616,000.00
Cookies 2,800.00 540.00 1,512,000.00
Total Revenues 4,032,000.00

Cost of Good Sold Annual Qty Cost

Cake 2,800.00 283.66 794,248.00
Cupcake 2,800.00 223.33 625,324.00
Brownies 2,800.00 168.33 471,324.00
Cookies 2,800.00 413.45 1,157,660.00
Total COGS 3,048,556.00

Gross Profit 983,444.00

Operating expense:
Marketing Expense 10000
Utilities Expense 24000
Salaries Expense 118940
Depreciation expense ( Oven) 4299 (21495/5)
Depreciation expense ( Mixer) 3200 (16000/5)
Taxes and License expense 3867
total Operating expense 164306

operating income 819,138.00

Taxes 78,675.52

net income 740,462.48

*We have projected an increase of 200 in quantity every year.

2. Budget Requirements

a. For our projected sales, we have assumed that a total of 2000 in units will be sold in year 1.
b. Computation for our COGS is based on the actual cost of raw materials that used per product.
c. 8% of the total gross profit was the company yearly taxes.(Based on the train law)
d. Utilities/depreciation and other related expenses are same until year5.
e. We have projected additional 200 units every year to be added to the quantity sold.

3. Implementation and Timeliness

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Zendy’s Slices have a marketing activity monthly. We our thinking to expand our business for the
coming years and possible to have a regular target market and will be situated in a proper location
within the city. In that sense we can able to plot a marketing activity per month that will attract
more customers.

4. Estimates of Profitability
Year1
Assets:
cash 322,460.00
Invetories 2,177,540.00
Machine-oven 21,495.00
Machine-Mixer 16,000.00
supplies 5,000.00
Total assets 2,220,035.00

Liabilities -

Zendy's Slices and Cakes, Capital 2,220,035.00

Return on Assets 21.71%

Return on Owner's Equity 21.71%

Year2
Assets:
cash 804,417.20
inventories 2,395,294
Machine-oven 21495
Machine-Mixer 16000
supplies 5000
Total assets 3,242,206.20

Liabilities 0

Zendy's Slices and Cakes, Capital 3,242,206.20

Return on Assets 16.83%

Return on Owner's Equity 16.83%

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 Unisite Subdivision, Del Pilar, City of San Fernando, 2000 Pampanga, Philippines

Year3
Assets:
cash 1,415,627
invetories 2,613,048
Machine-oven 21495
Machine-Mixer 16000
supplies 5000
Total assets 4,071,170

Liabilities 0

Zendy's Slices and Cakes, Capital 4,071,170.04

Return on Assets 15.01%

Return on Equity 15.01%

Year4
Assets:
cash 2,091,463
inventories 2,830,802
Machine-oven 21495
Machine-Mixer 16000
supplies 5000
Total assets 4,964,760

Liabilities 0

Zendy's Slices and Cakes, Capital 4,964,760.20

Return on Assets 13.61%

Return on Equity 13.61%
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 Unisite Subdivision, Del Pilar, City of San Fernando, 2000 Pampanga, Philippines

Year5
Assets:
cash 2,831,926
invetories 3,048,556
Machine-oven 21495
Machine-Mixer 16000
supplies 5000
Total assets 3091051

Liabilities 0

Zendy's Slices and Cakes, Capital 3091051

Return on Assets 23.96%

Return on Owner's Equity 23.96%

Net Profit Margin, sometimes referred to as just “profit margin”

Year1= 68.61%
Year2 =70.61%
Year3 =72.51%
Year4= 74.01%
Year5= 75.29%

Gross Profit Margin Comparative Expense Analysis

Year1= 24.39%
Year2= 24.39% Year2= 0.1 Increase
Year3= 24.39% Year3= 0.09 Increase
Year4= 24.39% Year4= 0.08 Increase
Year5= 24.39% Year5= 0.07 Increase

5. Evaluation and Monitoring Results

In order to achieve the target sales every year, we have concluded to have good controlling systems
on how the revenue will be properly distributed; such as purchasing inventories to produce the
products of Zendy’s Cakes and Slices; systematized allocation of revenues on the different expenses
of the business; and if possible investing new equipment for the continuous innovation of the
products. Given all of these aspects Zendy’s Cakes and Slices will have good and systematized
allocation and distribution of revenues and expenses.
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References /Appendices

Fleischhacker, N., Heron, D., Nagle, S. Paquette, T. (2011) Crave and Cookies Business Plan.
region 3.dilg.gov.ph, 2014.
Anthony H, 2008
Fuld, 1994
(euromonitor international, 2014)
(Nielsen, 2015)
(Basu, 2018)
taxacctgcenter.org by Garry Pagaspas
(https://www.google.com.ph/search?q=julie%27s+bakeshop+marketing+strategy&tbm)
(http://www.juliesbakeshop.com.ph/home.php)
(https://www.slideshare.net/lfolegario/micromarket-analysis-for-goldilocks-and-red-ribbon)
(https://alexcolipano.wordpress.com/2016/03/14/17marketing-plan-summary-of-red-ribbon/)
(https://www.scribd.com/doc/3699043/BreadTalk-FinalReport)

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