2028, Anonas St., NDC Compound, Sta.

Mesa, Manila
09163133297
[email protected]
www.cheapnachips.com
Table of Contents

1. Executive Summary ………………………………………………3

2. Industry Overview ………………………………………………..6
3. Market Analysis and Competition ………………………………..7
4. Sales and Marketing Plan …………………………………………9
5. Ownership and Management Plan ………………………………11
6. Operating Plan …………………………………………………..15
7. Financial Plan ……………………………………………………18
 EXECUTIVE SUMMARY
Cheap na Chips is a licensed snack company that will engage in the production of chips and will
be based in Sta. Mesa, Manila. We are a unique snack brand because we do not just sell assorted
flavored chips, but we will also engage in the sale of our franchise and also offer consultancy
services in line with our area of business.

Cheap na Chips’ leases an office and production warehouse. The company does not own any
buildings or land, but they have furnished the lease space. Cheap na Chips owns some office,
warehouse and production equipment, formerly used for packaging in the warehouse. Production
equipment is occasionally used to meet large orders. It is important to note that Cheap na Chips’
equipment is not being used to full capacity. This will be a factor in the business planning
objectives and implementation. When it comes to hygiene, we have put plans, process and
structures in place that will ensure that we are always at the top of our game when it comes to
that.

The market was open to and interested in the product line of four products that include potato
chips, taro chips, banana chips, and strawberry chips that Cheap na Chips had to offer. The
original target focus was on the different schools in Sta. Mesa, following a trend for at home
snack foods that the owners observed.

Our strongest selling point at Cheap na Chips is the unique taste of the different types of chips &
dips that we sell. There is hardly any customer that will taste any of our products who would not
want to come back and make more purchase.

Cheap na Chips will at all times demonstrate their commitment to sustainability, both
individually and as a firm by ensuring that we hold ourselves accountable to the highest
standards by meeting our client’s needs precisely and completely.
Our Product

Cheap na Chips is an establishment that primarily engages in processing and packaging chips of
different flavors.

Here are some of our products;

 Potato Chips
 Taro Chips
 Banana Chips
 Strawberry Chips
 Dipping Sauce
 Flavoring Powder

Mission Statement

Cheap na Chips is committed to providing unique, high quality, premium potato chip products
that round out the “at home entertainment experience” for the end consumer, available through
intermediaries on a wholesale basis.

Vision Statement

“To create a truly global brand that provides high quality products and affordable prices to all.”
SWOT

Internal Strengths
 Gross Profit Margin
 Strong Management Team
 Inexpensive Supply Costs
 Very little wasted/ damaged/ returned product

Internal Weaknesses
 Some Management team members have other commitments
 Research and Development understanding
 Consumer Awareness
 Many Competitors
 No defined entry strategy

Opportunities
 Industry Growth trends towards box store shopping
 Product Differentiation
 Increasing demand in the gift market
 Retailers have the ability to focus product attention based on seasonal trends

Threats
 Highly Concentrated market
 Increase in competition due to globalization and industry growth
 Customer demands and shopping trends are shifting
 INDUSTRY OVERVIEW
Chips are one of the most popular snack foods consumed worldwide. Chips are made through
modern food processing machines using mature flavoring technology. Chips are widely
consumed, especially by young people, due to their tastefulness. They are delicious fried foods
characterized by a salty taste, crispy texture, and fatty mouth feels. Apart from this, chips are
generally well packed and sold in air-tight plastic bags which significantly increases the
longevity of the products.

Over the last couple of months Cheap na Chips is witnessing a shift in consumption patterns, a
fluctuation in price of raw materials, and intense competition from substitutes. Manufacturers in
the market are expected to meet success by developing newer products and quickly modifying
ingredients of existing products to meet changes in consumer demand. The development of
newer flavors to meet taste preferences of varied consumers is the key to surviving in the global
snack market.

Consumers are seeking healthier snacks, which they can indulge in, owing to their busy
lifestyles. Thus, smaller packages that are portable, convenient are in high demand. Potato chips,
which have conventionally been an affordable snack, are popular among all age groups,
especially the young population. The latter is showing a positive response for new flavors of
chips.

Sales Projection

Unit Sales (Monthly

Unit Price Sales
Sales*350)
Potato Chips 31,500 15 472,500
Banana Chips 24,500 20 490,000
Taro Chips 22,750 20 455,000
Strawberry Chips 28,000 25 700,000
Dipping Sauce 57,750 10 577,500
Flavoring Powder 66,500 5 332,500
Total 3,027,500
 MARKET ANALYSIS AND THE
COMPETITION
Market Trends

Potato chips currently represent one of the world’s most popular snack foods. From its accidental
birth in 1853, the potato chips market has evolved with time and currently represents a multi-
billion dollar market. Owing to their easy affordability and cheaper price even for the premium
products, potato chips are popular among all age groups. Currently, the growing young
population (below 15 years) represents a key segment for the potato chips market. Major factors
driving the global demand of potato chips are growing urbanization, rise in disposable incomes
and rapidly changing lifestyles. A busy lifestyle coupled with long working hours have forced
people to shift from elaborate luncheons and meals to desk snacks and packaged foods. Other
factors like value addition and growth of emerging markets are also expected to propel the
demand of this market. According to IMARC Group, the global potato chips market has grown
at a CAGR of around 4% during 2010-2017 and reached a market value worth US$ 28 Billion.

Costumers / Target Market

The end consumer for Cheap na Chips products are people who are looking for a snack product
that is delicious, cheap, and will complement their at home entertainment. These customers range
from young families, students, children, etc. Cheap na Chips product line fills the need of
convenience, indulgence, and premium products that will attract consumers based on these
impulsive desires, as well as being a product that consumers will learn to trust and appreciate
through high quality.

While the commercial market can be relatively difficult to enter, and often has a high level of
competition. The market is very large and provides a large variety of products, that new products
that meet the needs and trends of consumers can find the appropriate niche within this highly
competitive market. At this point, the nature of the market becomes beneficial because the large
volume of products attracts a large number of consumers. Also, the costs in the industry, after
the initial costs, are lower because their product is sold through one channel, instead of several,
smaller orders. Cheap na Chips product is very specific and has attributes that meet the trends
within the industry. The advantage of entering this industry is that Cheap na Chips has a unique
product line that is not yet seen in large establishments. Products that are very similar in quality
and style to Cheap na Chips products are not offered in commercial establishments. By being a
first mover in this market, Cheap na Chips will secure a hold on the market before competitors
move.

Competitive Advantage

Comparison of Features for Snack Food Store and the Competitors

Competitors product features Snack Food Store product features
Individual packaging and bulk packaging Individual packaging for value purchasing
Some variety Wide variety
Commercial products and private labels Private label
Medium to high quality High quality
Low price to high price Premium, affordable price
Low to high brand image Low brand image

Consumer needs and solutions

Consumer Needs Snack Food Store Answer
Natural foods Foods with no MSG
Entertainment A range of snack foods that are fun to make
Comfort Potato Chips is an ultimate comfort food and at
home convenience adds to comfort
Indulgence A range of products that are snack indulgences
Premium products Cheap na Chips products are high quality
Value time Cheap na Chips products complement at home
entertainment and are quick and easy

SALES AND MARKETING PLAN

Product
Our business is in food industry, the chips, offering three of kinds of chips; we have potato, taro
and even a banana chip. The difference of our product from other competitors is that the flavors
of our chips can be done by two variants, it can be a flavored powder or it can come with a
dipping sauce. We come up with four kinds of flavoring powder; barbecue, cheese and sour
cream. When it comes to dipping sauce, we also offer cheese, tomato, sweet and sour. The
special dipping sauce that we offer is the egg salted flavor. Our chips can be purchase as a plain
one. Our chips are cooked though frying where in the oil that we used is a vegetable because it
contains unsaturated fats.

We make sure that we will be selling a healthy product. Potato contains 110 of calories
that would satisfy those people who are in diet, it also has vitamin C that serves as an
antioxidant, it can also help people from digestion, heart health, blood pressure and even cancer
prevention. Taro roots contains dietary fiber where in it would help us to prevent diabetes, it also
has a high level of vitamin A and vitamin C that can boost our immunity system. Banana is
known for being rich in minerals called potassium – it can help us to maintain the fluid levels of
our body and regulates the movement of nutrients and waste products in and out of cells, also it
can help to reduce the risk of forming of kidney stones.

We can assure that we won’t be using any preservatives when selling our product not like
from the other companies who uses a lot of it that can cause a lot of health issues. We also make
sure that each of the products that we are selling is fresh and newly cooked.

Pricing Strategy

Up to this point the company has had complete control over price. A bag of chips contains 28g.
The price of chips varies because of the different prices of the raw products. The price for the
potato chips is 15 pesos; taro & banana chips are 20 pesos, while strawberry chips at 25 pesos.
The flavorings and sauce are separate from the chips itself so that the costumer can freely choose
the flavorings and sauces they want according to their palate. Powdered flavor can be sold for the
amount of 5 pesos. In dipping sauce, each can be sold for the amount of 10 pesos. Volume
discounts will always be offered in order to increase sales to big box stores. These prices will be
maintained over time because the extra discount is only taking away from the profit margins,
which are still at high levels, covering costs will not be a problem especially since sales will be
increased.

Place

Our chips are a home-made product. Our product is peddled to the nearest school and public
places where we can surely sell our product. Our product can be also distributed to some sari-sari
store. Since online selling is a current trend of vending stuffs and services, our product can also
be bought through online, we have our own Facebook account to entertain those buyers who
wants to buy our product. We will be delivering it as soon as possible to maintain the freshness
of the product. When it comes to online selling, we strictly follow the rules that there is no
cancellation of orders. We still accept the returning of the product but it should be sealed as new
or else the buyer is obligated to buy the product.

Promotion

Advertising strategies will create a pull by consumers, through magazines etc. We will also be
promoting our product through online, today many people are using social media that’s why it
would make easier for us if we use social media as our promotion strategy; we have our
Facebook account to share the information, benefits and prices of our product. We also have our
own music chants that can make our product remembered by our customer and possible
customer.

OWNERSHIP AND MANAGEMENT PLAN

Cheap na Chips is a retailer corporation business. As such these 5 young entrepreneurs will
manage the company. Operations Manager is a financial coordinator of the business activities.
Though these 5 has always run the business and has an in depth knowledge of its operations and
the industry the organizational structure may need to be re-evaluated if there is a major
production increase. Currently The Operation Manager currently runs all of the day to day
operations. The Operation Manager is also in charge of human resources and all staff.

Below is the business structure that we will build Cheap na Chips:

 Chief Executive Officer

 Plant Manager
 Human Resources and Admin Manager
 Merchandise Manager
 Sales and Marketing Manager
 Accountants

Chief Executive Officer – CEO (Owner): Ecsner Vincent Santarin

Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching,

counseling, and disciplining managers; communicating values, strategies, and objectives;
assigning accountabilities; planning, monitoring, and appraising job results; developing
incentives; developing a climate for offering information and opinions.

 Responsible for fixing prices and signing business deals

 Responsible for providing direction for the business
 Creates, communicates, and implements the organization’s vision, mission, and overall
direction – i.e. leading the development and implementation of the overall organization’s
strategy.
 Responsible for signing checks and documents on behalf of the company
 Evaluates the success of the organization

Mr. Santarin brings to Cheap na Chips an accomplished business background, exceptional

acumen, and a lifetime passion for the business experience. Vincent has over 2 years of business
management in the Information Technology industry. Like IT, successful ventures in the
business industry he balances capitalizing on new trends with continual quality assessment.
Vincent’s understanding of day-to-day cash flow planning and staff management will be critical
to Cheap na Chips financial success.

Mr. Santarin has a background in International Business Management and Business Start-ups,
and is certified in Restaurant and Hotel Management. As co-owner, EcsnerVincent Santarin is
responsible for overall direction and operational management. Mr. Santarin is a strong business
leader responsible for strategic planning and continued growth of business services and business
development.

Plant Manager: Marijo Amoyo

 Responsible for overseeing the smooth running of the chips production plant
 Part of the team that determines the quantity and flavors of chips that are to be produced
 Maps out strategies that will lead to efficiency amongst workers in the plant
 Responsible for training, evaluation and assessment of plant workers
 Ensures that the steady flow of both raw materials to the plant and easy flow of finished
products through wholesale distributors to the market
 Ensures operation of equipment by completing preventive maintenance requirements;
calling for repairs.
 Ensures that the plant meets the expected safety and health standard at all times.

Ms. Amoyo was a baker and a pastry maker before entering the fields of business, along with her
other business partners Ms. Amoyo focuses her abilities on making the chips much more better
than it was before, she also focuses on using different flavors and recipes in order to create
something new and unique to introduce to the local market. Ms. Amoyo specializes on the trends
and using her pastry skills to create new products that can be another source of our income.

With a degree in pastry and knowledge in making chips Ms. Amoyo contributes in perfecting
and making the chips better each day, she also helps in business operations and Product
improvement.

Human Resources and Admin Manager: Ray Vincent Pablo

 Responsible for overseeing the smooth running of HR and administrative tasks for the
organization
 Enhances department and organization reputation by accepting ownership for
accomplishing new and different requests; exploring opportunities to add value to job
accomplishments.
 Defines job positions for recruitment and managing interviewing process
 Carries out induction for new team members
 Responsible for training, evaluation and assessment of employees
 Oversees the smooth running of the daily office and factory activities.

Mr Pablo is an entrepreneur and an expert business man, he specializes on the ingredients needed
to make and modify our product, he works with Marijo Amoyo in perfecting the recipe needed to
maximize the flavors of the chips. As an expert business man he can also assist Vincent Santarin
on the plans and deliveries as well as in financing and investor services.
With a degree in Economics and an accomplished career, Mr. Pablo contributes the experience of
his past successes, and is charged with leading the Business Operations, Staff Selection and
Training initiatives for cheap na chips.

Merchandise Manager: Aesaac Jorrel Amosin

 Manages vendor relations, market visits, and the ongoing education and development of
the organizations’ buying teams
 Responsible for the purchase of raw materials and packaging materials
 Responsible for planning sales, monitoring inventory, selecting the merchandise, and
writing and pricing orders to vendors
 Ensures that the organization operates within stipulated budget.

Sales and Marketing Manager: John Anthony Francisco

 Manages external research and coordinate all the internal sources of information to retain
the organizations’ best customers and attract new ones
 Models demographic information and analyze the volumes of transactional data
generated by customer purchases
 Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
 Responsible for supervising implementation, advocate for the customer’s needs, and
communicate with clients
 Develops, executes and evaluates new plans for expanding sales
 Documents all customer contact and information
 Represents the company in strategic meetings
 Helps to increase sales and growth for the company

Mr. John Francisco was an experienced business even on his younger years, he has been exposed
to the world of business at a very young age due to his class on TLE, he specializes on operating
a business and managing one as well, he is accompanied by Vincent on running the management
and its operations, he can also help on the financial needs and serves as a financial adviser to the
team.

Mr. Francisco uses his skills to maximize earnings and to lessen the financial needs of the team,
he can also help on managing and keeping the team riled up due to his leadership skills. He has
graduated and earned a degree on Business management as well as an expert financer.
Accountant/Cashier

 Responsible for preparing financial reports, budgets, and financial statements for the
organization
 Provides managements with financial analyses, development budgets, and accounting
reports
 Responsible for financial forecasting and risks analysis
 Performs cash management, general ledger accounting, and financial reporting
 Responsible for developing and managing financial systems and policies
 Responsible for administering payrolls
 Ensures compliance with taxation legislation
 Handles all financial transactions for the organization
 Serves as internal auditor for the organization

OPERATION PLAN
Physical Flow of Product
 Cheap na Chips will produce their own products; the product will be made and brought
into Sta. Mesa for packaging. Bulk raw product is delivered and packaged, in the Cheap na Chips
packaging center. The products are then boxed and shipped to the Cheap na Chips facility for
distribution or storage. Cheap na Chips has a very short product turnover rate. Product is not in
stored long before shipping, this ensures a fresh consistent product.

Quality Control

Cheap na Chips prides itself on quality and it is one of their major competitive
advantages along with their guarantee on products. All companies involved with Cheap na Chips
are registered. Not only is product quality monitored at the individual manufacturer level but also
during packaging and again before shipping. Damaged products are taken off the line and
discarded.

Cheap na Chips has very few limitations with product supply, but if capacity was to
increase on a large scale they may have to acquire further storage. Cheap na Chips may also have
to look at a new packaging contract.

Work Hours
Cheap na Chips has business hours from Monday to Friday10:00am-4:30pm. The
business also shuts down for 2 weeks for Christmas and 1 month (July) during the summer.

Overtime

Overtime is paid to employees who work more than 8 hours in a day or 42 hours in a week (32
hours in a week with a holiday). Overtime is paid at 1.5 % to non-salaried workers (Sask Labour,
2006). This will be the policy if overtime is required, but overtime has not been calculated into
the financial plan, as it is not projected to be required for the expansion.

Training Program
While Cheap na Chips does not have a large number of employees, it is important to have
a template for training new employees. This template can be relatively informal, due to the size
of the company and the availability of the manager to clarify any problems for new employees.

Part one: Instruction manual

  Organization – Company history, mission statement, objectives, policies, procedures.
 Safety – Workplace hazards, safety equipment and precautions, emergency contacts.
 Introduction to Job Orientation.
Part two On Site Job Orientation

 Job description and pay, pay period, expectations, work hours, tour of offices and
warehouse, flow of work, record keeping, management, equipment and proper use, skills
and techniques required and handling materials
Equipments
Item Name Price (Pesos)
Conveyor 13,000
Cleaning and peeling machine 12,000
Picking Line 12,500
Cutting Machine 11,400
Rinsing Machine 12,000
Blanching Machine 13,500
Air Cooled Dehydrator 16,000
Frying Machine 10,000
Vibrating Screen 14,000
Seasoning Machine 9,000
Packing Machine 15,000

SALARY BREAKDOWN:

SALES DEPARTMENT Pay Scale (in pesos)

Quantity Employee (*regular) Per Hour Per Month/Year Total
2 Cashier 34 6,120/ 73,440 146,880
4 Sales Clerk 26 4,680/ 56,160 224,640
1 Bookkeeper/Accountant* - 24,700/ 296,400 296,400

Other Employees Pay Scale (in pesos)

Quantity Employee (*regular) Per Hour Per Month Per Year
1 Marketing Specialist* - 19,800 237,600
1 Manager* - 40,320 483,840
BENEFITS BREAKDOWN:

Benefits Fund Amount (in pesos)

Holiday Insurance 40,267.92
Vacation Insurance 47,589.36
Leave Insurance 43,928.64
SSS Insurance 65,209.20
PhilHealth Insurance 18,360.24
Pag-IBIG Insurance 6,000.00
13th Month Pay 134,823.20
Mid-year Bonus 54,911.60
Others 9,500.00
Total: 420, 590.16

TRAININGS AND SEMINAR EXPENSES BREAKDOWN

Training And Seminar ESTIMATED PRICE x 3 employees
Seminar Fees 3,000 9,000
Transportation 2,000 6,000
Pocket Money/Allowance 1,500 4,500
Total: ₱19,500

START-UP EXPENSES BREAKDOWN

Legal Expenses (Licenses and Permits) ₱67,609
Installation Charges (like telephone, internet connection, etc.) ₱6,500
Advertising and Promotion ₱25,000
Decorating and Remodeling ₱500,000
Utility Deposits (water and electricity) ₱5,000
Total: ₱604,109

FINANCIAL PLAN
Balance Sheet
 Submitted By:

Amosin, Aesaac Jorrel

Amoyo, Marijo

Francisco, John Anthony

Pablo, Ray Vincent

Santarin, Ecsner Vincent