BUSINESS PLAN

I. BUSINESS CONCEPT
A. The Company
• Short description of the company that will include the following:
a. Name of the Company
Form of Business Organization
Complete Address
b. Vision and Mission
c. Company Logo

B. Business Model
1. a. Business model canvas
b. Target market
c. Proposed product/service
– service/product value
– service/product description

BUSINESS ENVIRONMENT A II. BUSINESS ENVIRONMENT

A. MACRO-ENVIRONMENT
PESTLE TRENDS

POLITICAL
The political climate of a place can greatly influence businesses. Government corruption and
instability may cause unease among its citizens, which can cause them to hold back from purchases due
to unpredictable political cycles that can, in turn, affect economy.
Peace and order can significantly affect the business. Potential investors may hesitate to invest in
businesses when peace and order are not observed. This will also influence the consumers’ buying
attitudes as their fear of potential threats to their safety hold them back from going out. As a
consequence, business and economic activities may increase or decrease depending on the peace and
order within the area.
Tax policies can also alter the business environment. They can increase or decrease according to
the government’s mandate.

ECONOMIC
Economic elements have a significant influence on how an organization does business and also
how profitable they are. Factors consist of – financial growth, interest rates, exchange rates, inflation,
disposable income of buyers and companies, etc.

Economic recessions can affect our business due to tightening credit conditions, lower demand,
and general fear and uncertainty in consumers, businesses, banks, and other financial intermediaries.
This is a foreseen consequence of the pandemic that has crippled the country’s economy. This will
decrease economic activities and lessen cash in-flow. Income and employment is also a significant player
in the buying behavior of consumers. In the event of economic recession or slow down, there shall be
higher unemployment rates, which means that many households will have less income. For our business,
since yogurt drinks are not viewed as a staple good, this will result in lower sales as people spend less on
goods that they think they do not need.
For some businesses, inflation could be a bad thing. The consequences of rising costs could
increase production spends and decrease profitability. As a result, the industry could be forced to raise
prices and contribute to a loss in customers. Feelings of uncertainty may lead to money hoarding, and
consumers may hold back on spending. As a consequence, the business may face a potential reduction
in sales. This is harmful to business sales and stability.

SOCIOCULTURAL
Demographics and population trends such as the population growth rate, age distribution, income
distribution, career attitudes, safety emphasis, health consciousness, lifestyle attitudes, and cultural
barriers encompass the sociocultural aspect of the PESTEL analysis.
The business’s success is influenced by the population of the chosen location/s and its growth
rate. Having more people in the area of business would mean more potential customers.
 The age distribution is an important social factor that can affect the business because yogurt
drinks are more likely to appeal to specific age groups. According to a study, yogurt drinks skew largely
female, lower to middle income, and age 25-45. In a study by Chobani Yogurt, Inc., yogurt drinks appeal
mostly to the 13-45 years of age, both students and professionals. Other studies reveal that other
demographics also have issues with choosing healthy beverages. So, the business shall leverage on the
different sizes that will fit the needs of the consumers.
Standards of living factor bears the heaviest weight among the others. This influences the
consumption habits and the attitude towards natural, healthier, and eco-friendly products.

Health consciousness also plays a significant role. Some consumers favor this product group as
safe and reliable sources of essential nutrients in food, vitamins, omega-3 fatty acids etc., while other
consumers do not see the necessity for the consumption of these products because of lower income and
lower level of awareness. As yogurt drinks are not staple food in the Philippines, some may not see it as a
necessary purchase, thus reducing the number of potential customers. The movement of some
individuals towards vegan lifestyle will negatively affect the sales of the products. Vegans make it a point
to shun all animal products, including yogurt, in their lifestyle including their diet. As this lifestyle gains
more and more followers, the sales of yogurt will decrease, and negatively impact the business.
Hence, customers who are facing obesity can also affect sales of yogurt in the market. However,
Yogurt is a healthy substitution which ferment lactose releasing natural sugar unlike whole milk. This is a
great benefit for those who are maintaining and losing weight, and soon might spike the interest for some
consumers. In addition, too much sugar and gluten may also trigger certain conditions such as diabetes,
or allergies.
Religion and Culture could affect the business by growing concerns over halal foods in regions
where Muslims are in a majority. This is because Muslims do no consume products that they do not
believe to be halal.

TECHNOLOGY
The automation of systems will ease the flow of business and help and improve service by
utilizing business analytic applications in measuring and enhancing the efficiency of business operations.
This initiative will help generate increased customer satisfaction. Any innovations in the technology
associated with the operations may greatly improve the efficiency of goods and service deliveries as well.
Developments in technology associated with our business include:

• Quality equipment. To make sure that the product is delivered at its best, prime quality
tools and equipment are used, ensuring that the dessert is clean, fresh, and promptly
served to consumers.

• Truck Modification Technology. As a small and starting venture, the location of any store
is key to operating a successful business. With yogurt It! being on wheels, we can reach
different places and serve more people. This can be achieved through the truck. It may
be located in well populated areas such as retail stores, local market fairs, or parks.

• Social Media will be the platform that would help the business increase its market reach
and at the same time can also be used for advertisements, promotional giveaways, and
other announcements. It will also be a platform to give the customers awareness as to
where the next location of the food truck is. This can attract customers, get feedback
from them, and build customer loyalty.

LEGAL
The legal aspect of the analysis affects businesses as a consequence of governmental laws.
They play a crucial role on how companies operate and how customers behave. It is important that the
business should comply with the regulations and ordinances mandated.
The minimum wage bound by the Labor Code of the Philippines is set on the regular working
hours of eight (8) per day. It is a given and a constant that employees shall be “entitled to compensation
or basic wages, overtime pay, service charges, SSS, EC, and Philhealth contributions, service incentives,
and retirement pays.”
All businesses classified under the food industry strictly follows the Republic Act 10611 or the
Food Safety Act of 2013, which “strengthens the food safety regulatory system in the country to protect
consumer health and facilitate market access of local food and food products and for other purposes.”
Furthermore, this act provides in its 14th section, “Food business operators shall be knowledgeable of the
specific requirements of food laws relevant to their activities in the food supply chain, and the procedures
adopted by relevant government agencies implementing the law. They shall adopt and be well informed of
codes and good practices. Micro and small businesses shall be assisted to facilitate their adoption of
good practices.” This includes observing Food and Drug Administration (FDA) rules to provide people with
right beverages and other food-related substances.
Furthermore, City Ordinance No. 56, Series of 1948, also known as “Health and Sanitation
Ordinance of Davao City” covers the sanitation and welfare of all those involved in the business activities
and operations, and the Solid Waste Management Program under RA 9000. Therefore, these laws and
ordinances are to be followed by the business as compliance for ensuring safety and quality both for
thebusiness, its employees, and the consumers.

ECOLOGICAL
The effects of global warming and climate change are strongly felt by people all around the world.
This has influenced consumer attitudes and preferences towards businesses who practice environment-
friendly initiatives and purchase products that align with their preference for more eco-friendly goods.

This concern has been raised and has been responded to accordingly by policies and regulations
mandating businesses to cooperate to reduce companies’ environmental footprints. Thus, businesses are
now expected to observe environment-friendly practices such as using eco-friendly packaging, recycling,
joining in eco-friendly initiatives, among others Yogurt manufacturers are aware of these calamities as
yogurt, our main ingredient in the business, has lower Greenhouse gas emissions (GHGEs) in its
production and is made from natural and organic ingredients. Moreover, yogurt has relatively low carbon
costs which include GHGEs, as stated by Casino, a French retailer.

The Philippines’ tropical climate encourages businesses like yogurt It! because consumers will
surely find beverages to cool themselves with. Also, yogurt drinks' digestive and health benefits add more
appeal to customers, especially after a meal.

SWOT ANALYSIS

STRENGTHS

Nutrition Content. Developed yoghurt products have a balanced composition of major nutrients in
food – proteins, fats, carbohydrates – 1:1:4; probiotic properties, caused by a high concentration of viable
cells of bifido- and lactobacteria (not less than 5·108 and 1·109 CFU/cm3 , respectively). Furthermore,
our product will

High brand recognition. The business shall use unique, eye-catching, and ecofriendly packaging
that will secure products efficiently, make it stand out from the rest, and attract customers who want to
contribute to the environment care movement.

Prices are budget-friendly. The business shall practice bulk buying supplies to have discounted
prices from suppliers. Healthy payment terms shall also be practiced with suppliers which will enable the
company to have flexible payment methods and ultimately achieve desirable pricing both for the company
and its customers.

Pride in putting forth quality and customizable yogurt drinks. The business shall turn to local
suppliers of fresh and quality yogurt, dairy, and other ingredients for the product line. Yogurt It! Prides
itself in its quality, delicious, and customizable yogurt drinks to cater to the customers’ needs.

WEAKNESSES

Short Shelf Life. Yogurt drinks are an example of fast-moving consumer goods (FMCG), which
means that they should be sold before their sell-by dates. It is important to note that dairy products, like
yogurt drinks, have relatively short shelf life which is typical for almost all fermented milk products. The
shelf life of yogurt products is only 6–8 weeks under refrigerated condition, depending on the production
method and packaging material. Thus, products should be sold and disposed within their sell-by dates or
it will increase wastage percentage and lead to more cost for the business.

Lack of outlet presence in malls. Since the physical store of the business is a food truck, the
product is less likely to be exposed to mall goers, which can constitute a huge number of potential
customers.

Lack of Established Reputation. Since we started a new business it is very hard to build up a
good reputation in the market. Reputation can be the difference between success and failure so in order
to be successful we will form our reputation by the personal experiences that individuals will have with our
ice cream van as word of mouth is the best advertisement.

Seasonal Factor. During rainy/cold season from the month of September to December the
revenue of yogurt business might decrease because some people prefer don’t purchase cold drinks
during cold days.

III. MARKETING PROGRAM

1. Product

Brand Name

Yogurt It provides tasty and healthy beverages mainly made from freshly made
yogurt. Our yogurt drink is similar to milk tea beverages; however, we use Yogurt and
honey instead to uphold our products’ healthy content. We are inspired by the yogurt
drink trend spread throughout Asia like Taiwan, China, Malaysia, and Singapore. The
trend promotes health awareness while satisfying our sweet tooth craving, as well as
enhancing digestion.

Size Weight Packaging

Medium 500 mL Cup
Large 700 mL Cup

Core purpose

Yogurt it is a product that would satisfy your cravings with less feeling of guilt and a good
replacement for milktea with healthier benefits. Our product both offers satisfaction to the cravings of the
customers and at the same time provides health benefits as it uses fresh fruits and honey instead of
sugar. In this time of the pandemic, a lot of people change their lifestyle as they invest in their health in
which they choose products with healthier benefits and our product is one of those products which offers
a lot of health benefits such as; it is rich in nutrients, high in protein, helps in digestion, boosts the immune
system, and it is sugar-free. Alongside its health benefits, it is a treat for everyone and can be enjoyed by
anyone.

Difference with existing competing products

Milk tea and other refreshing drinks have become a world-wide hit food business.
There have been numerous selections and substitutions when choosing a specific drink
nowadays. Many food companies create endless options for consumers and innovate the
latest flavors and drink styles to attract customers. On the other hand, Yogurt It makes it
more unique and a healthy choice for customers. What makes Yogurt It exceptional,
unlike other milk tea brands, is fresh and organic ingredients. The drink's main ingredient
is yogurt, where it is mixed to all flavors what the business presents. Plain white yogurt is
a healthier choice, which contains less sugar, high protein, strengthens the immune
system, an excellent benefit for heart health, and promotes weight management, unlike
milk itself. Sweetness always gets in the way. Yogurt It will use honey instead of white
or brown sugar or any processed magic sugar, as the company highlights organic use of
ingredients. Honey, on the other hand, is a great substitute instead of sugar. For it
produces more sweetness and lessens the rise of blood sugar. All Yogurt It drink flavors
are made from fresh fruits: banana, mango, pineapple, melon, and avocado. Instead of
powdered fruit flavors, the business suggests going the extra mile to create new and
organic products in the local food market. It shows a good investment, where it highlights
the local's richness of fruits and nature. Therefore, this business and its neighboring
 competitors sure offer a lot of difference in its quality and quantity. Where customers
invest in the right and healthy choice and enjoy nature's refreshing drinks.

2. Price

The business will use the cost-based pricing strategy. Cost-based pricing uses production
costs 9fixed and variable costs) as its basis for pricing and, to this base cost, a profit level must
be added in order to come up with the product price, where:

Price = variable cost + fixed cost

Fixed costs in the business are indirect costs known as overhead, which are not directly
involved in the making of a product. This cost is inversely proportional, which means that any
increase in units produced will result in a lower amount of fixed cost per unit produced.

The fixed costs of the business are the following:

• Parking rent
• Diesel Fuel for Transportation and Generator

Variable costs, on the other hand, are direct costs related to producing our products, and
are usually the direct materials and direct labor; they are directly proportional to the number of
units we plan to sell.

The variable costs are

• Raw ingredients
• Packaging
• Value Added Tax (12% VAT)
• Direct Labor Cost

Computation for Variable Costs:

Cost of Raw Materials per Unit Computation:

The business intends to sell 40 medium sized yogurt drinks and 35 yogurt drinks
regardless of flavors. The computation for the cost of raw materials per unit are presented
below:

Note: Prices are rounded off to two decimal places for uniformity.
IV. OPERATIONS PLAN
 Location of the business
 Official hours of operation

A. Operations Process Flow (present in a flow chart)

A B C D

(Provide detailed detailed discussion for each below)

A.
B.
C.
D.

B. Material Requirements (for one month operation)

Items Qty Unit price Total Supplier

1. cheese 3 boxes P44.00 NCCC

C. Lay-out (of the space where the process takes place, e.g. floor plan of the kitchen for
food production)
D. Human Resource Management
 Human Resource Requirements
Ex. One (1) cashier
 Job Specification, Job Description
 Organizational Structure

E. Business Ethics

V. FINANCIAL PLAN

A. Income Statement
B. Statement of Financial Position