p LEGACY COLLEGE OF COMPOSTELA

(Formerly: Philippine Institute of Medical Sciences and Technology)

Dagohoy St., Poblacion, Compostela, Davao de Oro

“Quality Education Within Reach”

SPOOTIEFRIES.CO

A Business Plan

Presented to
Ma’am Vanesa Gales, LPT
GE102-Entrepreneurial Mind

Presented by
Dexchell Rose Jimenez
Florante Isaac Garcia
Rhea Ivonne Alagon
Connie Abratiguin
Andrea Puyong
May Nortega

JUNE 2024

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 TABLE OF CONTENTS
Summary…………………………………………………………………………...3
Marketing Plan…………………………………………………………………......6
Production Plan……………………………………………………………………14
Organizational Plan………………………………………………………………...22
Financial Plan……………………………………………………………………......28

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SUMMARY

3
EXECUTIVE SUMMARY

1.1 Name of Business

"SPOOTIEFRIES" combines three key elements - Spotify app, Smoothie, and

Fries - to create a unique concept that merges snacks and music. The name reflects
the core ideas behind the business, emphasizing the blend of entertainment and food
offerings. With a focus on snacks and music, "SPOOTIEFRIES" encapsulates the
essence of the business and its potential to offer a distinctive experience to customers.

1.2 Business Address

The business is to be situated at P-4, Clarin, Poblacion, Compostela, Davo

De Oro. We Choose this area because Clarin is the famous village in the
Poblacion and another reason is the students of Davao De Oro State College
are renting in the Clarin, Poblacion.This would a big positive side of our chosen
area.

1.3 Nature of Business

"SPOOTIEFRIES" is a food and entertainment venture that combines the joy of

snacking with the pleasure of music. We specialize in offering delicious fries
and refreshing smoothies, accompanied by curated playlists that enhance the
overall experience. Our brand collaborates with local artists from different parts
of the Philippines to create visually captivating packaging and promotional
materials. The registration of the company will be led by General Manager
Concepcion Abratiguin, "SPOOTIEFRIES" aims to provide exceptional quality
and a unique fusion of flavors and melodies for food and music enthusiasts.

1.4 Company Vision

"SPOOTIEFRIES" strives to be a leading brand, known for its high-quality

snacks and exceptional service. We aspire to expand our presence and become
a trusted name in the food and entertainment industry.

2.4 Company Mission

"SPOOTIEFRIES" is dedicated to delivering the highest quality snacks and

exceptional customer service to our valued customers. We are committed to
providing a wide range of delicious and satisfying snack options that meet the
highest standards of taste and quality. Our goal is to ensure that every customer
who enjoys our snacks experiences the highest level of satisfaction. We strive

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to exceed customer expectations and aim to be recognized for our commitment
to excellence in the snacks business.

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MARKETING
PLAN

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 A. Product/Service to Sell

Product Description:
"SPOOTIEFRIES" offers a mouthwatering selection of snacks, primarily focusing on
fries, paired with a variety of refreshing smoothies. Our snacks are crafted using
high-quality ingredients to ensure a delectable culinary experience.

Unique Selling Proposition:

At "SPOOTIEFRIES," we take pride in delivering a unique combination of flavors and
a delightful snacking experience. We provide a vibrant and enjoyable atmosphere
where customers can savor their favorite snacks while immersing themselves in
carefully curated playlists that enhance the overall ambiance.

Benefit:
By choosing "SPOOTIEFRIES," customers can indulge in flavorful snacks that are
prepared with utmost care. Our commitment to using quality ingredients ensures a
satisfying taste and experience. Additionally, our focus on providing a lively
atmosphere with curated playlists adds an extra layer of enjoyment to the snacking
experience.
We strive to create a memorable and fulfilling experience for our customers, where
they can satisfy their cravings while enjoying the perfect blend of flavors and music.

Core Competencies
Our company take pride in offering high-quality products that are not only
recognizable among consumers but also made entirely from organic materials. By
using organic materials, we minimize the release of toxic gases, ensuring the health
and well-being of both our customers and the environment. Our company also helps
the local scene by partnering up with local greengrocers to buy potato for fries
and fruits for smoothies to be sold which creates income and recognition for them.
Our company also uses a technologically driven strategy where we will create a
strong branding, effective promotions, and valuable services that will also cater
the market through online. The business owners are all technological competent
since they have undergone trainings that would hold as some of the bases for
improvement and modernized service.

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 B. Target Market Consumer/Customer

Table. Target Market: Random People

Demographic
Age 15 years old and above

Gender Male and Female

Income 5,000 above (monthly)

Occupation Students/ Young

Professional/ Unemployed
Generation BABY BOOMERS/GEN
Y/X

Psychographic

Social Class Lower, Middle, Upper

Class

The company chose random people because our product is for all people but only
those who can can afford the price to our product. And according to Market
Research Firm Cint (Statista July 2, 2021) recent survey, it has revealed that
approximately 46% of Filipinos tend to eat at fast food restaurants one to three times
on average a week, which is surprisingly much higher compared to the 2% of Filipino
people who do not frequently engage in eating in such places at all.

Area Coverage
The area coverage of the company will be at Davao De Oro since it is still a start-up
but will eventually expand to a bigger coverage as the company grows and develop.
The company will start expanding into bigger coverage by using social media for the
advertisement.

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 C. Demand and Supply Analysis

a. Total Potential Demand

In the Philippines, the total potential demand for fries and smoothies is influenced by
various factors such as consumer preferences, lifestyle trends, and economic
conditions. As of 2.6 billion in 2023, the demand for convenient and on-the-go
snacks like fries and healthy beverages like smoothies is on the rise.

Based on a study from MarketLine, a business information company, the global

smoothie and fries’ industry has been growing at a steady rate of 4.78% annually
since 2011 (refer to appendix A). With sales reaching nearly $1.4 trillion in 2017, this
industry is poised for continued growth, projected to experience a 5.91% yearly
increase over the next three years. By 2020, the market size of the smoothie and
fries’ industry is anticipated to soar to an impressive $1.65 trillion in sales worldwide.

b. Present Supplier/ Competition

There are a lot snacks product that can be considered as our competitors but the
company decided to choose, Potato Corner, Burger King, Jollibee and other big
company. Meanwhile, in Local where we put our first area, will be the street vendors.
Most of these company or stores compete mostly on the food product and pricing.

c. Projected Sales
Table1. Potato Fries
Price Per Target Unit Sales Cost of Profit of
Cup Sales Sales Sales
February 100 240 24,000 20,364 3,636
March 100 390 39,000 33,092.5 5,907.5
April 100 360 36,000 30,546 5,436
May 100 400 40,000 33,940 6,060
June 100 480 48,000 40,728 7,272

Table 2. Smoothie
Price Per Target Unit Sales Cost of Profit of
Unit Sales Sales Sales
July 40 240 9,600 5,280 4,320
August 40 390 15,600 8,580 7,020
September 40 360 14,400 7,920 6,480
October 40 400 16,000 8,800 7,200
November 40 480 19,200 10,560 8,640

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Assumptions:
The company aims to achieve a total sale of 61,971.5 by the end of its operation.

D. Marketing Program and Strategies

Spootiefries competes with Potato Corner, Burger King, Jollibee, and various
vendors in the smoothie and potato fries. These brands have established a strong
presence in the market and are popular among consumers. Let's outline their
strategies across the 4Ps:

A. Product Strategy:
Potato Corner is known for its variety of flavored fries, Burger King offers a range of
fast-food options, Jollibee is famous for its Filipino-style dishes, and vendors provide
a mix of street food items.

B. Price Strategy:
Potato Corner, Burger King, Jollibee, and Street vendors offer competitively priced
products that cater to customers with an average budget, ensuring affordability
without compromising on quality.

C. Place Strategy:
Potato Corner, Burger King, Jollibee, and Street vendors have various locations
nationwide, including malls and street corners, making their products easily
accessible to a wide range of customers.

D. Promotion Strategy:
Potato Corner, Burger King, Jollibee, and vendors promote their products through a
mix of social media posts and traditional marketing methods like posters. They utilize
these channels to reach a broader audience and attract customers to their locations.

Own Marketing Program/Strategies

Spootiefries marketing strategies are centered around the following:

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A. Product Strategy:
Smoothie Delight is a local smoothie company that offers a variety of refreshing and
healthy smoothie options to its customers. They focus on using fresh fruits and
quality ingredients in their smoothies, appealing to health-conscious individuals.
Fries Galore, on the other hand, is a national brand that specializes in potato fries.
They offer a wide range of flavors and toppings for their fries, catering to different
taste preferences. Their fries are known for their crispy texture and delicious taste.
As for Spootiefries, our company can differentiate itself by offering a unique
combination of smoothies, potato fries, and music. We will be focusing on creating
innovative smoothie flavors that complement the taste of our fries. Additionally, we
can incorporate music into our brand by hosting live music events or creating
playlists that enhance the overall dining experience for our customers.

B. Pricing Strategy:
SpootieFries offers affordable prices for its smoothies and potato fries, catering to
the average budget of customers.

C. Place Strategy:
SpootieFries is conveniently located in local (Davao De Oro), making it easily
accessible to customers to accommodate its target market.

D. Promotion Strategy:

SpootieFries promotes its products through a combination of social media posts,

showcasing our delicious smoothies and flavorful potato fries. We also utilize posters
and signage inside malls to attract customers. In addition, we incorporate music into
our promotions by hosting live music events and creating engaging playlists that
resonate with our target audience.

By implementing these strategies, SpootieFries aims to create a unique and

enjoyable dining experience for customers, combining the goodness of smoothies
and potato fries with the joy of music.

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E. Distribution Strategy:
SpootieFries will implement a direct retailing distribution strategy, where our products
will be distributed directly to customers without the use of any middlemen. This can
be done through various channels such as, online purchases, or physical stores.
However, the disadvantage of online purchases is the ambience of music and design
of the physical store they can’t experience it. By directly interacting with customers,
we can ensure a seamless and personalized experience, allowing us to showcase
the unique combination of our smoothies, potato fries, and music to our target
audience.
This distribution strategy will enable us to have direct control over the customer
experience and build strong relationships with our customers. We strive to provide
convenience and quality in every interaction.

E. Marketing/Selling Expense
SpootieFries aims to minimize marketing expenses by utilizing organic marketing
strategies through social media promotions and advertising. By leveraging the power
of social media platforms, we can reach our target audience effectively and efficiently
without incurring significant marketing costs. Through engaging content, attractive
visuals, and interactive campaigns, we will create a strong online presence and
generate buzz around our unique combination of smoothies, potato fries, and music.
This cost-effective approach allows us to allocate our resources towards delivering
exceptional products and experiences to our customers.

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Selling and
Administrative
Expense
Salaries
Rhea 350
Dexchell 350
Andrea 350
May 350
Isaac 350
Total 1,750

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PRODUCTION
PLAN

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 A. TECHNICALOPERATIONS DESCRIPTION

Spootifries is a gourmet fries’ company that specializes in creating high quality,

unique flavored fries using locally sourced, organic potatoes. Spootifries aims to
cater to the increasing demand for healthy yet delicious snack options while
supporting local farmers and promoting sustainable agriculture. The raw materials,
which are premium organic potatoes, will be sourced from local farmers in Davao del
sur and Davao De Oro. These potatoes will be transported to the manufacturing
plant located in Davao, and delivered to our store where the fries will be cut, flavored
with proprietary seasonings, and packaged. The unique flavor profiles will be
developed by our local owner and these recipes will be sent to the kitchen for
cooking.

B. PRODUCTION PROCESS

The Manager will be acquiring supplies and raw materials online. After purchasing,
items will be delivered via a courier. The Manager will perform quality checks on the
received items to ensure they are not defective. Defective items will be returned
under the supplier's warranty agreement.
The non-defective items will be sent to the storage area for the cutting and
seasoning processes.
Post manufacturing, the fries will undergo a quality control check, and if repairs or
alterations are needed, they will be addressed before cooking. The Manager will
oversee order fulfillment and sales. The Manager will conduct inventory checks and
coordinate restocking.

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Step by Step Procedure

• Process Flowchart

• Raw Material • Quality • Frying and

Potatoes Check Smoothie
Preparation

• Ordering and • Quality

•packaging
Processing Control Check

•Inventory
• menu/sales Management

Duration per Step per Batch

PROCESS DURATION

Raw materials shipping 4-6 days

Frying and Smoothie prep 5 minutes
Quality control 1 day
Packaging 7minutes after ordering
Inventory Management 1 day
Reordering 1 day

Labor and Machine Requirement per Step

Process Labor requirement Machine requirement
Raw materials shipping N/A N/A
Frying and Smoothie prep Cooking skills Fryer, blender
Quality control monitoring skills N/A
Packaging attention to detail / packaging materials
creativity
skills

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 repairs/ alterations cooking skills fry, blender, cutter,
seasoning
equipment
inventory management Forecasting Skills, N/A
Mathematical Skills
Reordering Supplier phone
Communication Skills

C. PRODUCTION SCHEDULE
The team consists of six workers, each with a capacity to produce 60 servings of
fries and 60 servings of smoothies per week, leading to an average of 480 servings
per month per worker.

Worker Weekly Capacity Monthly Capacity

Rhea 60 servings 240servings
Dexchell 90 servings 360 servings
Andrea 97 servings 390 servings
May 100 servings 400 servings
Isaac 120 servings 480 servings

C. LABOR REQUIREMENT

Labor Requirement:

The team is composed of six members who handle all operations, including
marketing. As the business is still in the early stages with limited capital, the
business owners will manage all tasks to minimize costs. Team members must
possess marketing skills and basic computer skills. They must understand each
other's tasks to ensure smooth multitasking and operations.

Labor Productivity

The team will work intensively to reach sales targets and implement marketing
strategies. With five members, there is a higher chance of successful market
penetration.

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 D. EQUIPMENT REQUIREMENT

Fixed Capital
The company will use a room for rent at Compostela. The rent will be minimal, but
other expenses, such as utilities, will be paid monthly. The company will purchase
necessary materials for cutting, blender and seasoning the fries.

Life of Fixed Capital

The equipment is expected to last approximately five years, with upgrades planned
based on sales and profit.

Maintenance and Repair

Owners will be responsible for maintaining their personal equipment. The workers
will handle the maintenance and repair of cutting, blender and seasoning equipment.

Sources of Equipment
Phone will be provided by the owner, and also the cutting, blender and seasoning
equipment will come from the owners.

Planned Capacity
All equipment will be used up to 70% of its capacity to ensure longevity and
efficiency.

Future Capacity
Future endeavors will also utilize equipment at up to 70% capacity.

Terms and Conditions of Rented Equipment

The owners will formalize a contract with the owner of the property regarding the
rental of the facility for the five-month period.

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F. PLANT/FACTORY LOCATION

Spotifries' store will be situated at Clarin, Poblacion, Compostela DDO. The

equipment needed for production is located at this site, chosen for its proximity to
local suppliers and potential customers, reducing transportation costs.

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 E. PLANT LAYOUT

F. WASTE DISPOSAL

Spootiefries will comply with the Republic Act 9003 or the Ecological Solid Waste
Management Act of 2000 to minimize environmental waste. We will collect and
repurpose scrap materials into giveaways and promotional items. Proper waste
segregation, transport, and storage will be strictly practiced.

G. QUALITY CONTROL

Quality checks will be conducted weekly. Fries and Smoothie must pass
standards in four areas: potato/ fresh fruits quality, seasoning consistency,
packaging integrity, and overall taste. Defective batches will be discarded, and only
approved products will be distributed.

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 Sector Required Quality
potato/fruits quality 100% organic potatoes, locally
sourced
seasoning consistency uniform flavor /fresh high
/Smoothie ingredients quality
Frying/blending evenly cooked, crispy texture/
fresh and smooth texture
overall taste meets flavor profiles standards

packaging biodegradable, secure

J. PRODUCTION COST
The production cost for each packet of fries and smoothie is itemized below:
Item Price (PHP) Quatity Total/Unit (PHP)
organic potatoes ₱155 1kg
organic fruits ₱155 1kg
seasoning mix ₱120 1 packet ₱1.20
oil ₱65 1kg
packaging ₱120 50 pcs ₱3.92
materials
smoothie ₱615 5 different item
ingredients
labor 365
transportation ₱65 1 ride
Total Cost per Unit ₱8.45

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ORGANIZATIONAL
PLAN

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A. COMPANY DESCRIPTION

Vision

A modern Filipino company renowned for providing high-quality and 100% pure
organic fries worldwide, committed to empowering the different cultures of the
Filipinos.

Mission

To produce quality organic fries infused with culture-empowering through the

collaboration with local from diverse places.

Company Goals and Objectives

In consideration of the situational, and consumer analysis of the environment as a
whole, Spootiefries aims to achieve the following goals and objectives for the short
run and long term:

Short Term:
- To be recognized as one of the strongest proponents of high-quality.
- To increase sales by 25% every month.
Long Term:
- Expansion of product line.
- Maintain competitive advantage in quality.
- Expand nationally.

B. LEGAL FORM OF BUSINESS

The legal form of business for Spootiefries is a General Partnership where partners
share workload, liability, and profits equally, and all partners are actively involved in
business operations.
The company is owned by six competitive young individuals named Ms.Concepcion
Abratiguin, Ms. Rhea Ivonne Alagon, Ms.Andrea Puyong, Ms. May Nortega, Ms,
DexchellRose Jimenez, and Mr.Florante Isaac Garcia, each contributing equally to
the capital and responsibilities in the company.

C. ORGANIZATIONAL STRUCTURE

Spootiefries' organizational structure is designed with multiple key roles to ensure

effective operations. The following key positions play vital roles in driving the
company's success:

1. General Manager
Ms. Concepcion Abratiguin

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 • Oversees marketing, sales, and day-to-day business operations.

2. HR and Marketing Manager

Ms. Rhea Ivonne Alagon
• Manages HR activities from team motivation to workforce selection.
• Plans effective marketing strategies to promote the company's products.

3. Finance and Accounting Manager

Ms. Andrea Puyong
• Provides financial advice and support for decision-making

4. Purchasing Manager
Ms. May Nortega
• Responsible for procuring high-quality equipment and services at competitive
prices.

5. Operations Manager
Ms. DexchellRose Jimenez & Mr. Florante Isaac Garcia
• Plans, coordinates, and controls manufacturing processes to ensure top-
quality products.

Each role within the organizational structure of Spootiefries is crucial for the smooth
functioning and growth of the company, ensuring that all aspects of the business are
managed effectively and efficiently.

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25
D. QUALIFICATIONS OF OFFICERS

• General Manager

Job Description:
- Developing high-quality business strategies and plans, ensuring their
alignment with short-term and long-term objectives.
- Overseeing all operations and business activities to ensure they
produce the desired results and are consistent with the overall strategy
and mission.
- Leading and managing subordinates to achieve employee engagement
and high performance.

• HR and Marketing Manager

Job Description:
- Developing and executing human resource strategies in support of the overall
business plan and strategic direction of the organization.
- Specifically focusing on areas such as succession planning, talent
management, change management, organizational and performance
management, training and development, and compensation.
- Development and execution of marketing and advertising strategies.

• Financial Accounting Manager

Job Description:
- Responsible for the planning, implementation, managing, and supervision of
all finance activities of the company, including business planning, budgeting,
forecasting, and negotiations.
- The Financial Manager should also ensure compliance with regulations and
partnerships.

• Purchasing Manager
Job Description:
- Responsible for sourcing equipment, goods, and services, managing
vendors.
- The Purchasing Manager will perform strategic procurement activities across
multiple categories of spend, search for better deals, and find more profitable
suppliers.
- Maintain records of goods ordered and received.

• Operations Manager
Job Description:
- Provides the leadership, management, and oversight necessary to
ensure that the company has the proper operational controls,
administrative.

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G. ADMINISTRATIVE EXPENSES

Selling and
Administrative
Expense
Salaries
Rhea 350
Dexchell 350
Andrea 350
May 350
Isaac 350
Total 1,750

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FINANCIAL PLAN

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A.Total Project Cost

Table 1. Fries
Item Quantity Unit Cost Total Cost
Potatoes 1kg 155 155
Seasoning Mix 1 Packet 120 120
Oil 1kg 65 65
Packaging 25 pcs 60 1,500
Materials
Transportation 1 65 65

Total 1,905

Table 2. Smoothie
Item Quantity Unit Cost Total Cost
Fruits 1kg 155 155
Condensed Milk 1 100 100
Evap Milk 5 40 200
Vanilla 5 40 200
Ice 1 cube 50 50
Packaging 25 pcs 60 1,500
Materials
Sugar 1kg 65 65
Total 2,270

Table 3. Materials
Materials of Quantity Unit Cost Total Cost
cooking
Deep Fryers 2 1,190 2,380
Blender 2 658 1,316
Utensils 20 1,090 21,800

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 Total 25,496

Cost Per Cup Calculation

Table 1. Fries
Expenses Item Total Cost Quality Cost per cup
Potatoes & Fruits 620 100 6.2
Seasoning Mix 120 100 1.2
Packaging 6,000 100 60
Materials
Coconut Oil 75 100
Transportation 65 100 0.65
Total 6,880 100 84.85

Table 2. Smoothie
Expenses Total Cost Quality Cost per Cup
Fruits 155 100 1.55
Condensed Milk 100 100 1
Evap Milk 200 100 2
Vanilla 200 100 2
Ice 50 100 2
Packaging 1,500 100 15
Materials
Sugar 65 100 .65
Total 2,270 22.7

Pricing Strategy
Fries Smoothie
Total cost per cup: 84 Total cost per bottle: 22

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 Selling Per Cup: 100 Selling per bottle:40
Cost Per Cup: 84 Cost per bottle: 22
Profit Per Cup: 16 Profit per bottle:22

B. Source of Financing
Main source of finances will be secured from the personal investments of each
executive involved in the company namely the company’s General Manager,
Marketing Manager, Production/Operations Manager, Human Resource Manager
and Financial Manager. Equally dividing the projected cost and total requirement
computed above, each of the executives shall initially invest an amount totaling Php
15,000.

Revenue projection (first month)

TABLE 1. Fries
Sales projections Quantity Unit price
Total cup sold 100 84
Total revenue: 8,400

Table 2. Smoothie
Sales projection Quantity Unit price
Total sold per bottle 100 22
Total revenue: 2,200

Cost Projection (First Month)

Ingredients Total cost
Potatoes 155
Seasoning Mix 120
Oil 65
Packaging Materials 1,500
Transportation 65
Total: 1,905

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Profit Projecting (first month)
Total revenue 8,400

Total cost 1,905

Net profit 10,305
Total revenue 2,200
Total cost 2,270
Net profit 4,470

C. Projected Financial Statement

Cost Flow Analysis

Table 1. Fries
Cash flow Amount
Initial capital of potato fries 1,905
Total revenue 8,400
Total costs 1,905
Net cash flow 10,305

Table 2. Smoothie
Cash Flow Amount
Initial capital of smoothie 2,270
Total revenue 2,200
Total cost 2,270
Net cash flow 4,470

Financial Projection
Month Project revenue Projected cost Projected profit
February
March
April

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May
June

33