RETAIL PLAN : ART CREAMS MKA 21

ART CREAMS Yummy Ice Cream Creations

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RETAIL PLAN : ART CREAMS

Yummy Ice Cream Creations | Athena Marie Espinosa Kamille Guerrero Kristoffer Mercado Kevin Cruz Francis De Guzman

RETAIL PLAN : ART CREAMS

I. Retail Business Description a. Name of the business, logo and tagline:

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TAGLINE Yummy Ice Cream Creations! Art Creams will be the name of our business. We chose to have this name because we are a retail business that specializes in offering ice cream creations. With our product, customers can customize their own ice cream just like doing an art project. Customers have the chance to design their own ice cream with all the flavours available. b. Mission/vision Mission Statement Art Creams mission is to create the finest and sensational ice creams available at reasonable prices. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall in to place. Our products and services will exceed the expectations of our customers. Vision Statement Transform the simple pleasure of eating ice cream into a memorable, one-of-a-kind experiencewhere people could create their own happiness" Art Creams vision is to be widely known as the leading marketer of ice cream, that will let customer designed their own personalized "dessert creations," choosing from basic ice cream, yogurt, and sorbet flavours and adding in fruit, candy, nuts, syrups, and other ingredients.

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c. Capital Requirement and Source of funds

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In order to fulfil the vision and mission of the company, including it financial and non financial goals, the initial capital costs is 1,600,000.00 PhP that would be obtained through equal share of owners of 320,000. The initial capital already includes the initial inventory, the raw materials, the rent for the space, licensing agreement and licenses, grand opening marketing and the salary of employees. The initial capital also includes the additional expenses needed Breakdown: Equipments and Machines ---------- 200,000 PhP Furniture and Fixtures ---------------- 180,000 PhP Art Creams Cart ------------------------ 40,000 PhP Initial Raw Materials/Ingredients --- 460,000 PhP Salary ------------------------------------ 78,000 PhP Training Programs -------------------- 50,000 PhP Business Permit and licensing ----- 10,000 PhP Rental Fee ------------------------------ 80,000 PhP Marketing Cost ------------------------ 390,00 PhP Total 1,488,000 PhP Total (w/ other expenses ---------- 1,600,000 PhP d. ROI analysis Projected Income: Projected daily sales --------------- 18,650 PhP Projected gross monthly sales - 559,500 PhP Less Expense: Electricity and water --- 13,000 PhP Salary---------------------- 78,000 PhP Ice Cream Supplies ---- 14,428 PhP Others -------------------- 2,000 PhP 107,428 PhP Net Income --------------------------- 559,600 PhP 107,428 PhP

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Net Income Return of Investment Capital ------------------------ 1,600,000 PhP 452,172 PhP 3.5 The capital will return in 3 years PERCENTAGE OF R.O.I. sales / investment x profit / sales x 100 559,500/1,600,000 * 452,172/559,500 * 100 ROI Percentage = 28.35 % 452,172 PhP

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e. Type of retailer Art Creams is a store-based food retailer offering different ice cream flavors, first grade frozen fruits and purees and offer them at a reasonable price in a very convenient location. Art Creams is an independent, single store establishment that is owned and managed by owner (us) themselves.

f. Type of merchandise offered ART CREAMS is a start- up business that will provide ice cream with customized, original flavors. Art Creams products specialize in selling naturally made gourmet ice cream, that offers a variety of flavors namely; Chocolate Chip Cookie Dough, Oreo Cookie, Dulce de Leche Chunk, Banana Split, Mocha Almond Fudge, Banana Chocolate Chip, Banana Pistachio, Avocado, Cherry Vanilla, Cotton Candy Explosion, Cookies N' Cream; that will surely provide a velvety smooth taste sensation. This business is designed to offer a fun and colorful range of quality ice cream that has a creamy texture and exciting flavors that allow you to get carried away.

RETAIL PLAN : ART CREAMS

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Art Cream theme for the ice cream is gourmet with distinct line of ice cream flavors. Anything considered gourmet is made from the best ingredients, and our ice cream is no exception. At Art Creams, we combine fresh and natural ingredients to create the finest ice cream flavors. Its important for us to give you delicious treats without unnecessary extras. If you cant find in nature, then you wont find it in our ice cream.

g. Target Market Art Cream has a large scale of market due to the fact that most of the people loves and eats ice cream. The market can be segmented into three target population or customers: Individuals - People that loves ice cream by themselves. Families - Group of people, either friends or relatives who gather to go out and decided to buy gourmet ice cream to satisfy their cravings for sweet. Corporate - Corporate customers who work close to the location that has a sign of appreciation for healthy and refreshing flavors of gourmet ice cream.

DEMOGRAPHIC All age group - Kids of all ages would enjoy the product as they can pick out variety of their favorite flavors of ice creams. Adults would find the product interesting to eat as they can also enjoy the product without worrying about the nutrition facts. - Male and Female Young professionals working close to the location Grade school to professionals -

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h. What are your bases for competitive advantage?

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In order to cope successfully with competition and generate a positive result in return on investment, Art Creams will develop the following competitive advantage: Location we will be putting Art Creams store in the most convenient location where most people go to relax and chiil-out; which has a great number of pedestrian traffic that will provide a safety traffic flow. Human resource management we will be building a team where all employees are committed and knowledgeable. Unique merchandise we will offer customer product with greater choices at a reasonable price. Customer service we will ensure our customers that are employees are knowledgeable and helpful individuals. II. Market and Retail Site a. Business location Our business will be located at Corte De Las Palmas, Alabang Town Center, Ayala Alabang City of Muntinlupa. We chose this location because it is a very convenient for the type of business we have and the products we will be offering. Alabang Town Center is located within minutes of many residential neighborhoods and the center of a bustling business community. It is an open-air mall that will successfully blend to our product offerings. The community's second home and meeting place for everyday, it is a refuge where comfort, relaxation, and pleasurable shopping and dining happen at their pace. b. Competitors/retailer nearby, products and services offered

RETAIL PLAN : ART CREAMS

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Contis is a pastry shop and restaurant that offers delectable dishes and scrumptious meals at affordable prices. BreadTalk is a boutique bakery offering bread products that cannot be found anywhere else. Haagen-Dazs competes primarily in frozen dessert category with ice cream, sorbet and frozen yogurt products. Lacoste Armani Gap Calvin Klein

c. Traffic Flow Alabang Town Center are providing its customer convenience for ensuring a smooth traffic flow in the place for safety because vehicle and pedestrian traffic is very high especially when it is night time, people are rushing to this place to hang out, chill and relax. It is located within minutes of many residential neighborhoods, and the center of a bustling business community that is very accessible to our target customer. There are many vehicles that are passing by because it is near the commerce road. The presence of Alabang Town Center in the area has contributed a lot to the vehicular traffic and road congestion. The commerce road is usually for private vehicles, and the other side of the road which is the national road provides public transportation for commuters. d. Restriction in the location There is an Ordinance No. 10-109, which prohibits the use of plastic bags on dry goods and regulates its utilization on wet goods, and totally prohibits the use of Styrofoam in the location which leave its citizen to use only recycled paper bags. e. Location characteristic Alabang Town Center (location) is built in a Mediterranean courtyard-inspired style. This is in keeping with the easy and unhurried lifestyle of the place that

RETAIL PLAN : ART CREAMS

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is conducive to extended meals with family and friends. The place is very lively, that is sometimes been used to shoot for T.V commercials and a place where most celebrity hangout to relax. There are lots of parking spaces, some are newly renovated parking area and now twice bigger than before. The parking area is just meters away from the mall, where customer can park and walk through the mall. It is very visible from the street; the store is almost near the street so many people can see it and decide to pass by. It will be easy for suppliers to go to our location because it is very accessible and near the commerce road. Alabang Town Center has their own storage place that suppliers can go to, in that area they can be distributed in different stores. Store size 80 square meters f. Rental fee The estimated rental spaces fee in Alabang Town Center for a retail store is about 60,000 to 80,000 PhP Maintennce Cost Electricity and water --- 13,000 PhP Salary---------------------- 78,000 PhP Ice Cream Supplies ---- 14,428 PhP Others -------------------- 2,000 PhP 107,428 PhP

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g. Map of location

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RETAIL PLAN : ART CREAMS

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RETAIL PLAN : ART CREAMS

III. Store Layout and Design

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RETAIL PLAN : ART CREAMS

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a. Store Layout Art Creams will use free form layout that will create more spacious environment for the store. This layout will provide the customer a relaxing and chilling environment while they eat their ice creams. The furniture will be located near the windows which consist of table and chairs that are colored in beige, purple and lavender, and yellowish orange. There will be also a bar style area where a single customer can dine-in. Inside the store, there will also be a semi-like food cart of art creams that also provide different ice cream flavors near the counter to add to design of the store. Art Creams store lighting comes with natural light of the sun because our store has a lot of windows in an open-air area of ATC. Though we have natural lighting, we also used light fixtures which have a yellowish white color that will give a relaxing ambience for the store b. Design signage and graphics Art Creams will be using different signage to promote the retail store. We will be putting locational signage along the commerce road, natural road and neighborhood communities. We will also use promotional signage that is displayed in our windows to entice the customer into the store. Also, we will provide a creative menu for customer near the counter where they can see what are the ice cream we will be offering and its prices.

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c. How will the merchandise be presented?

The merchandise will be presented in the most creative way that will entice customer to buy and will satisfy customers cravings for ice creams. The ice cream will be located in the counter and in the food cart inside the soft-serve machine and storage shelves. Customer can customize their own ice creams creations and put additional design and toppings on it. Each scoop of ice creams will put in Art Creams packaging (container).

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IV.

Store Management Human Resources a. How many employees? Where will you get the employees? In Art Creams, 6 employees will be hired excluding its management (owners). Our employees will be lead by its Store Manager and assisted by its Assistant manager. We will get these employees through employee applications. We will post in our website for a job opening consisting of all the requirements they needed. b. Organizational Structure
Owner
Strategic management

Accountant
Financial Control

s Merchandise Manager
Merchandise Management Advertising and Promotion

Store Manager
Store Management Human resource management Distribution

Assistant Manager

Salespeople

Art Creams organizational structure is designed on a strong hierarchy which is functional where the positions and the functions of each are clearly specified. This is appropriate when an organization functions around only on one product.

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c. Job Description and Job Specifications

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Store Manager will be the hands-on manager for the daily operation JOB DUTIES 1. Applicant pre-screening 2. Inventory control 3. Employee training 4. Leadership and direction 5. Employee discipline and development 6. E-mail correspondence 7. Opening/closing paperwork 8. Review P&L reports 9. Usage of station charts and checklists 10. Maintain store cleanliness and sanitation levels 11. Auditing registers and preparation of deposits 12. Working hands-on to assist with customer needs and product preparation

Assistant Manager - Assistant Managers are trained to backup the Store Manager. JOB DUTIES: Art Creams is looking for happy, punctual, dedicated employees who enjoy providing our customers quality products and excellent service.

1. Applicant pre-screening 3. Employee training 4. Leadership and direction 5. E-mail correspondence 6. Opening/closing paperwork 7. Usage of station charts and checklists 8. Maintain store cleanliness and sanitation levels 9. Auditing registers and preparation of deposits 10. Working hands-on to assist with customer needs and product preparation Personnel/Staff - must be at least 18 years old and can perform the following tasks:

RETAIL PLAN : ART CREAMS

1. Customer service 2. Cash handling 3. Ice cream preparation 4. Stocking 5. Cleaning 6. Package department service 7. Working in the ice cream station

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d. Salaries and benefits Art Creams daily pay will be generally between 400 PhP to 464 PhP. We will be giving our employees different benefits that will equal their hard work for our business. We will also give our employees and their families their much needed health benefits so that we can give them back the things that they do for our business. Store Manager and Assistant Manager are eligible for Group Medical Insurance, Short Term Disability, Holiday and Vacation pay, paid training programs and employee discounts. Personnel/staff employees are eligible for employee discounts, flexible schedules, on-the-job training, and opportunities for advancement. e. Training programs We will be developing a program of orientation and training which all Art Creams employees must complete prior to starting work. A written policies and procedures manual will be the foundation for that training. All Art Cream employees will be trained to perform all customer service, quality control, and cleanliness and sanitation procedures utilized by the store, and will know exactly what is expected of them as an Art Cream employee. f. Advertising and Promotion Programs We have several advertising and promotional programs to market our business. For small business like Art Creams, the following marketing strategies are considered: Posting of posters on strategic locations Art Creams will be putting posters on strategic locations such as: along the commerce road, entrance of the mall and near the parking area and escalators. Sampling under consumer-oriented sales promotion Art Creams will provide samples on its Grand opening day for the customers to be aware of the product. Giving away of flyers

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Art Creams will be giving away flyers to make the customers aware of the product and the flyers would also help spread the information about the product through word of mouth. Word of mouth This is the spreading of information about the product by passing the news to the people that customers know. Art Creams website Art Creams will be making its own website to provide customer information about or business wherever they are.

g. Marketing Cost Expenses Outdoor and Print advertisements (Posters and flyers) Internet Promotions Sales Promotion Total Estimated Cost h. Customer service/customer programs We will provide extraordinary customer service for our customer developed by our trained employees. We will entertain customer inside the store by performing some ice cream tricks for them. Also, we will ensure our customer that they will get their ice creams on time. We will attend to the need of each of our customers. We will give our customers a survey sheet that will let them express what they think our business lacks of, with the help of their feedbacks we can improve our business imperfection. Cost 50,000 PhP 300,000 PhP 40,000 PhP 390,000 PhP

V.

Merchandise Management a. What are the products that you will need both sell and for operations? The product that Art Creams would need for both sell and operations are definitely different flavours of ice creams, first grade frozen fruits, purees, syrups and different ice cream toppings. The equipment that Art Creams would need to operate is; ice cream freezers, soft serve machine, display cases and preparation aids.

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b. Art Creams Suppliers

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Art Creams will have 3 suppliers of ice cream. That way, when a supplier cannot deliver the ice creams, there will be a back up supplier so that the operation of the company for that day will still be possible. The raw materials will be delivered weekly, but it would still be based on the weekly inventory of the products. Art Cream primary supplier: Arce Dairy Ice Cream Art Cream secondary supplier: Snow Joe Cream Coolers, Inc. Hernz classic ice cream

c. Inventory Management Strategies sales / investment x profit / sales x 100 559,500/1,600,000 * 452,172/559,500 * 100 ROI Percentage = 28.35 % Order Point = 18,650 x ( 2 + 1 ) = 18,650 x 3 = 55,950 units Art Creams needs to place an order if the quantity in inventory falls to 55,950 units. Art Creams will continue to improve its inventory turnover to get the benefits of high turnover with this the sales increases because new merchandise is continually available to customers. Art Creams will check its inventory to ensure product availability for the customer so we will not be over or out of stock. d. Pricing policies Art Creams will be using penetration pricing strategies in which price charged for our products and services is set artificially low in order to gain market share and acceptance. We will be adopting low price guarantee policy that will guarantees are customer the lowest and reasonable for the ice cream we sell. Banana split ( with all the toppings ) = 80,000 Php

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Regular Sundae ( ice cream of you choice ) = 50 PhP ADDITIONAL TOPPINGS = 10 PhP ADDITIONAL ICE CREAM SCOOP = 15 PhP

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Art Creams ice cream will have a 3 scoop of ice cream per order inclusive of all the toppings, if they wish to add more there would be additional charge.