Coffee Corner, Inc.

Business Management Department Cavite State University Cavite City Campus

The Pizza Primera Project Title January 17, 2013 Date Submitted January to March 2013 Project Duration

Introduction
In this second semester, the Business Management Department decided to make a Cooperative as project for the third year business management students. This project aims to enhance the ability, skills and knowledge of the participants and as well as will make them ready in the near future as a future marketer. In line with this, we, the current third year students, take part in this project and decided to establish our own product and company which we named as Pizza Primera. Pizza Primera is a newly built corporation in BM-3B which presents pizza sliced bread as its main product. It is one of the companies inside the campus who aim to establish a market position inside the Cavite State University Cavite City Campus to gain profit as well as to serve its target customers and bring them satisfaction. The Pizza Primera was also established because it is one of the requirements this second semester. This company guarantees everyone that its product is one of those no-one-willforget items that can be bought inside the campus. The product that we are going to offer in the campus (pizza) was the result of our recently conducted survey. Among the ten products that we placed in our survey forms, we selected the top five and chose one from those. The following are the top five in our list: 1. Pizza Slice Bread 2. Siomai 3. Graham on Cup 4. Fried Rice in Box 5. Iced Coffee As stated above, Pizza Slice Bread got the first spot and was our chosen product to offer on the market. We followed what general of the population wants, thus means we followed the marketing concept.

Product Description
Pizza Primera currently offers two flavours of pizza in the market. It is especially formulated to suit the taste and lifestyle of students and faculty members in Cavite State University Cavite City Campus, the target customers of the company. The ingredients are being supplied by our trusted partners that guarantee everyone its quality and are sure to be safe. Procedure in making the iced coffees: a) Get one piece of sliced bread and pour 10 grams of pizza sauce. Spread the sauce in the bread. b) Cook the ham/ground pork in the pan c) Get the cooked 10 grams ham/pork and placed it after the sauce d) Spread 10 grams of cheese and put it after the ham/sauce e) Then add the bell pepper and pineapple tidbits f) Place the sliced bread with the toppings inside the microwave oven g) Set the oven for 3 minutes h) Pizza done. Ham and Cheese Pizza This pizza is made especially for those pizza lovers that enjoy the classic taste of ham and cheese. Because we are using bread instead of crust, the pizza is sure to have a pretty unique texture that will enhance the taste of the product. Table 1: Raw Materials Used and Cost per 1 Serving Ingredients Gram Unit Sliced bread 13.04 grams Cheddar cheese 5 grams Ham 5 grams Plastic Wrapper --------Bell Pepper 2 grams Pineapple Tidbits 3.5 grams Pizza Sauce 5 grams TOTAL 33.54 grams

Price 1.08 php 0.76 cents .71 cents 0.075 cents .10 cents .55 cents 0.43 cents 3.71 php

Table 1.2: Production Input Production Input Cost per Hour Labor Php 5.00 Transportation ------------Electricity Php 4.86

Cost per Day Php 45.00 Php 14.00 Php 38.91

Cost per Week Php 90.00 Php 70.00 Php 116.72

Estimated Price of Ham and Cheese Pizza per 1 Serving 1 Serving 3.71 php

The estimated price for our pizza (ham and cheese) was based on our gathered statistical data. 8-10 pesos was the main choice of the respondents in which 10-12 pesos comes next. We also assume that this were the price students are capable to buy as well as the price that will give us reasonable profit.

SWOT ANALYSIS:
Strengths
Unique taste of the product Our offered ham and cheese pizza contains a unique taste that cannot be found in other pizza in the market. We can assure that students can afford our product because of its reasonable price. The appearance of our product is attractive that is sure can draw the attention of customers. During our survey, we found out that there are pizza lovers in the university. These customers already swore their loyalty to our product. All employees know how to operate the business in terms of serving the customer, price of the product and its cost.

Cheap price Attractive Appearance

Loyal customers

Knowledgeable employees

Weaknesses
Limited ability to raise capital The fact that the major cooperators are also just students, raising capital is one of our weaknesses. This was due to the limited capital and one location of our business The members or the employees should still attend their classes every day. Also, the cooperative have only six week to operate. Because there are nine groups that will share in one stall, the materials that we can bring is limited. All of the members were just first timers in handling a real business such as this, and that means that we are still in the experimental stage.

Limited ability to expand Limited time to operate

Limited space for the operation

Limited experience in handling business

Opportunities
Accessibility of the Store Cheap price The store can be easily seen which is an advantage. This was due to the limited capital and one location of our business The items that others are offering were far from our chosen product. It means that we have a large market to serve because of small/no competition. During our survey, we found out that there are plenty of coffee lovers inside the campus. This already mean a sure set of customers. There are 2000+ students inside the campus. The possibility of additional demand is very possible.

Little/no competition

Pizza lovers Large number of population of the university

Threats
Climate or weather change Future competitors School days are just limited to five times a week. Holidays, sudden suspension of class and other factors might affect our companys operating days. Students have only limited amount of money. Some may have a lower allowance than others which means that they have lesser ability to buy our product. 3 in 1 coffees are available in tetra packs everywhere. The said coffees also serve as potential threat in our company. Due to weather disturbances, the companys operation might stop in some days. Competitors may suddenly appear.

Number of school days

Students capability to buy due to their limited allowance

3 in 1 tetra pack coffees

Expenses
Cost of Goods As of February 1-28, 2013

Tasty Bread.......... Pizza Sauce...................... Cheddar Cheese.................... Pineapple Tidbits........................................ Bell Pepper................................................. Ham............................................................ Wrapper..................................................... Electric Bill.................................................

3,011 1,198 2,118 1,533 278 1,979 209 466

*the ingredients and its cost were good for 1 month operation of the company.

Projected Sales and Profit for 1 month

Pizza Ham and Cheese DEMAND 2788 EXPENSE PER UNIT 3.71 EXPENSE 10,810.36 PRICE PER UNIT 8 SALES INCOME 22,304 NET PROFIT (S-E) 11,493.64

Implementation and Control

Our company will make promotional activities in order to introduce our product in the market effectively. Through the following, we will promote and establish in the customers mind our product. Facebook Page: This is the cheapest and the most common form of advertising and promotional activity we will make. Our section has its own page wherein the products were shown. Through this, students and teachers will be more aware of our product. Approximately, checking the facebook page everyday will cost 50 pesos. Leaflets: We will hand students leaflets which will give them additional information about our current product. We will be doing this in the start of operation of the business which will approximately going to cost 80 pesos.

Tarpaulin: A poster which we will show a eye-catching image of our product will be installed in our chosen place for our business. This will surely draw the attention of anyone who will pass by in the school. 80 pesos is the allocated budget for a 4 by 4 square feet tarpaulin.

Summary
Pizza Primera was established because it is one of the requirements of the business management professors and instructors for the third year students like us. We know that this project is for our own welfare and thus will make us more competitive and knowledgeable in our field. As future marketers, we are aiming to be the most profitable and the most favoured company in the university while gaining more experience and knowledge in our field through this project. We also intend to satisfy our market and exceed their expectations. In data we got during our survey, pizza ranked as no. 1 while the siomai got the second spot. We followed the marketing concept thus we chose the pizza as our main product. The favoured price was 810 pesos and 10-12 pesos. Because of these, we have decided to put a reasonable price of 8 pesos per 1 serving of our product. During our product testing, our ham and cheese pizza got a nice response from the tasters. 8 out of 10 respondents graded the whole product (ham and cheese) as satisfying in terms of its flavour and appearance. Our projected income based from our computations and survey results to 11,493.64 pesos per month. As seen, this product was profitable enough and is absolutely possible to implement in the campus. Our product is environment and customer friendly, affordable, possible, has a basis, went on the right process, and profitable. We cant see any reason for this project not to be implemented in the campus.

To: Cavite State University Cavite City Campus From: Coffee Corner, Inc. Date: Jan 15, 2013

Dear Maam/Sir; Greetings! As the Business Management Department propose the Cooperative as our project on this semester, we, as third year business management students, will take part in the said activity. Pizza Primera is planning to put up a coffee business outside the school lobby, the place beside room 119, where the cooperative project (printing shop) was placed last semester. Primera Pizza is going to offer its pizza products at affordable price for the CVSU-CCC students and faculty members. We are kindly asking for your permission to allow us to operate our proposed business and to approve our chosen place. This will help us to start and promote our business sooner. As soon as our proposal was granted and as soon as we get the signal from our professors and instructors, we will like to operate as soon as possible. We are looking forward to your favourable response regarding the said proposal. Thank you and God bless!

___________________ Mary Nesther Natavio Marketing Manager, Coffee Corner, Inc.

BM COOPERATIVES Cash Flow Statement For the month ended, February 28, 2013

Cash Flow from Investing Activies: Cash Received from Customers Cash Paid for Operating Expenses: Merchadise Inventory Electric Expense Miscellaneous expense Supplies Salarries and wages Cash Flow from Investing Activies: Acquisition of equipments Cash Flow from Financing Activies: Investment Cash Balance

22,304 10,330 466.88 1400 900 3,600

16,696 (730.00) 5,000

5,608 (730.00) 5,000 9,878

BM COOPERATIVES Income Statement For the week ended, February1, 2013

REVENUES EARNEED: Sales Revenue LESS COST OFGOODS SOLD: Tasty Bread Cheddar Cheese Ham Wrapper Bell Pepper Pineapple Tidbits Sauce Overhead cost NET INCOME

22,304 3,011 2,118 1,979 209 278 1,533 1,198 466

10,793 11,511

BM COOPERATIVES Capital Statement For the week ended, February 1, 2013

Capital, January 28 ADD NET INCREASE IN CAPITAL: Net Income Capital, February 1 18,476 9,340 9,340 27,816

BM COOPERATIVES Balance Sheet February 1, 2013

ASSETS Current Assets: Cash Merchandise inventory Supplies TOTAL ASSETS Equipment: kettle thermos TOTAL ASSETS OWNER'S EQUITY Owners Equity: Capital TOTAL OWNER'S EQUITY 9,440 17,076 900 27,416 150 250 27,816

27,816 27,816