I.

Situation Analysis

A. Market Size and Growth

The market size of our target market has grown rapidly for the past few

years. More than two thirds of working – age women with dependent

children (68 per cent) were in employment in the second quarter of 2008.

But women without children were more likely to be in employment, at 73

per cent over the same period. At present over millions of mothers are

taking part of the family’s daily living, which causes them to spend less

time with the family, and if ever given the time, mothers still need to

accomplish household chores and other related activities.

B. Competitors

In the Philippine setting going to the market is not just a routine;

moreover it has been a culture that a member of the family should visit the

market in a daily basis. Because of this, delivery business of wet and dry

goods from the market has not existed. At present, here in the Philippines,

there are no existing competitors running exactly the same business. On

the other hand, there are several competitors on the same nature of

business in other countries.

C. Environment

Technology

The technological environment of Tele – Market contributes a big role in

the business. Vehicles, high-end food storage, and appliances that

maintain the cleanliness and sanitation in the establishment, these are just

some of the technologies needed to run the business.

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 Economic

Basically, the national economic status greatly affects the condition of the

business. At present, the economic status of the Philippines is not in a

good condition, which may make it more challenging for the business to

proper.

Social

The social environment of tele –market may contribute a big role in the

business’ success. Most Filipinos do have a healthy social life, this may be

a great opportunity for the business to tap other market segments.

Through social connections, informations about the business may spread

at a fast rate.

D. Strengths and Weaknesses

Strengths

At present, the female working force is rapidly increasing in number.

It has been a trend that both father and mother is out for work. Mothers of

millions of families contribute a big percentage in the female working

force. Because of this, mothers have to spend less time at home to cope

with the busy schedule of their work. This is where Tele – Market gets its

strength. Tele – Market, is in to answering a trend that might help millions

of families.

Weaknesses

Not all customers prefer other people to buy food for them. Another thing

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 is that not all people can afford the range of prices that our business offers.

II. Retail Concept

A. Name

“Tele – Market Delivery,” is the business name of which this retail plan

was made for. “Tele” is a common word used when telephone is used as

the means of communication. We named the business tele-market

delivery because of the nature of the business to deliver wet and dry

goods like what is sold in the market. Transactions or orders will be done

through the means of a telephone.

B. Brief Description

Tele – Market Delivery is a business that sells wet and dry products like

what is being sold in a traditional market. Moreover, customers of the

business can shop at ease; all they have to do is call the establishment for

their order and it will be delivered at their doorstep. The business answers

the need of spending time to market while not going there at all. This

saves the time of customers in buying daily needs while giving them an

added value and convenience through the delivery service.

C. Mission / Vision

Mission

Tele – Market Delivery aims to give its customer a brand new

lifestyle in managing their time to go to the market. It aims to give

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 convenience to its customers while giving them satisfaction through the

fresh products of the business. Through excellent customer relationship

management, Tele – Market Delivery will build a strong foundation

between its customers and the business to cope with fast paced

modernization

Vision

Tele – Market Delivery will be a world class business in attending to

the basic needs of its customers. Through quality goods and excellent

delivery service, Tele –Market delivery will lead in the field of its business.

III. Retail Strategy

A. Target Market

The growing number of busy and working moms are the target market of

this business.

B. Format

Merchandise or service:

It is a combination of food retailing and service. We are selling wet

products such as chicken, pork, beef any kind of meat as well as

vegetables and any ingredients that our customer needs. As our

customers call and order, we deliver our products to their doorsteps, fresh.

They can also send their orders via online, where there is also a part of

our page for recipe video that they can watch if they want a new dish since

online buying is the new trend for the retailers nowadays.

Pricing:

Our pricing is per kilo just like in the wet market, supermarket and

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 other establishment selling the same nature of product. If our customers

reached their cost up to php 400.00 worth of products the delivery cost

would be free, but if not they will just have to add an additional of php

15.00 for the delivery cost. We based our delivery cost on how much will

our customers commonly pay for their fare, with consideration to the

fluctuating price of oil. The expenses of out customers may appear higher

compared when they go to a traditional market, the reason behind this is

the added value and convenience of our business.

Location:

Our store location would be near subdivisions or villages where

most of the people residing in the area may have a need of being at ease

in terms of their daily routine in going to the market.

C. Basis for Sustainable Competitive Advantage

• Our advantage over other retailers is the fact that our

customer does not have to go out of their place and go to the market

where they have to roam around just to find the ingredients that they

would need. They just have to call and wait.

• Another sustainable competitive advantage of the business

is the quality of the service delivery. Deliveries are sure to come on

time (not more than 15 minutes after the time of order). Buying wet

and dry goods has never been this easy, and to maintain this

advantage over competitors, rules in the delivery service shall be

implemented such as considering the order free of charge if it gets to

the customer late.

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IV.Financials

SALES FORECAST (3 Years) 15%

ESTIMATED ESTIMATED
POPULATI ACTUA
YEAR PERCENTAGE OF ANNUAL DEMAND
ON L
BUYERS PURCHASE
1 7,264 13% 1,090 ₱ 8,000 ₱ 7,554,560
₱
2 7,300 15% 1,241 ₱ 10,000
10,950,000
₱
3 7,350 17% 1,397 ₱ 12,000
14,994,000

PROJECTED INCOME STATEMENT (1 year)

Per Month YEARLY TOTAL

Revenue 7,554,560
Less Cost of Goods (40%) 3,021,824
Net Sales ₱ 4,532,736
Operating Expenses
Salary/Wages 84,804 1,087,172
Rent 60,000 720,000
Telephone 500 6,000
Utilities - Electricity 10,000 120,000
- Water 500 6,000
Car/Delivery - Gasoline 8,000 96,000
Office Supplies 2,000 24,000
Advertising 10,000 120,000
Repairs / Maintenance 1,500 18,000
Total Operating Expenses ₱ 2,197,172
Net Profit Before Tax 2,335,564
Business Tax (32%) 747,380
Net Profit After Tax ₱ 1,588,184

TOTAL COST OF GOODS SOLD

Wet Goods 161,919 1,943,033

Dry Goods 89,396 1,072,748
Delivery Fee 504 6,044
Total Cost of Goods Sold ₱ 3,021,824

WAGES (Breakdown)
Full Time – w/ 13th month pay
Cashier 9,932 129,116
Cashier - Part Time 3,056 36,672
Store Assistant - Full Time 9,932 129,116

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Store Assistant - Full Time 9,932 129,116
Store Assistant - Full Time 9,932 129,116
Store Assistant - Part Time 3,056 36,672
Store Assistant - Part Time 3,056 36,672
Security Guard 9,932 129,116
Security Guard - Part Time 3,056 36,672
Delivery Cab Driver 9,932 129,116
Delivery Cab Driver 9,932 129,116
Delivery Cab Driver - Part Time 3,056 36,672
TOTAL 84,804 ₱ 1,087,172

RETURN ON INVESTMENT

Net Income 1,588,184 36.08

= =
Capital Investment 4,401,824 %

CAPITAL INVESTMENT

Car – Mini Cab (2) ₱ 1,500,000

Equipment/ Appliances 800,000
Office Supplies 100,000
Rent Deposit 180,000
Renovation 300,000
Inventory 3,022,000
TOTAL ₱ 4,422,000

SOURCE OF CAPITAL (Cash)

Valencia - ₱ 1,474,000
Fojas - ₱ 1,474,000
Lim - ₱ 1,474,000