TABLE OF CONTENTS

I. Executive Summary.1
II. Vision, Mission, Goal (VMG)..2
III. Business Overview3
Segmentation, Target, Positioning..3
III.1 Market trends
III.2 Demographic
III.3 Geographic
III.4 Behavioral
III.5 Psychographic
IV. SWOT Analysis..4
V. Marketing Mix (4PS)
V.1 Product..
V.2 Price..
V.3 Place..
V.4 Promotion..
VI. Marketing Goals and Objectives
VII.
Marketing Strategies
VIII.
Implementation Activities
IX. Budget and Sales Forecasts
IX.1 Sales Forecasts
IX.2 Expenses
IX.3 Contribution margin
IX.4 Break-Even Analysis (Variable and fixed costs)
X. Evaluation of results
X.1 Measurement of
Performance
XI. Control Measures
XI.1 Contingency Plans

I.

Executive Summary

South Prince Coffee Shop is determined to become a daily necessity for local
coffee addicts, a place to dream of as you try to escape the daily stresses of life
and just a comfortable place to meet your friends and enjoy the great taste of

coffee, all in one. With the growing demand for high-quality gourmet coffee and
great service, South Prince will capitalize on its proximity to the College
campus to build a core group of repeat customers. South Prince will offer its
customers the best prepared coffee in the area, as well as Free Wi-Fi
Connection that its patrons can enjoy their visit.

The establishment will operate a 50 square meter coffee bar within a

walking distance from the College campus. The owners have secured this
location through a three-year lease with an option for extending. The company
is expected to grow sales revenue from P947, 755.85 in FY2015 to P1,
911,010.43 in year five. As South Prince will strive to increase a 25% gross
profit margin and reasonable operating expenses.

South Prince Coffee Shop can be an effective place to conquer stresses.

II. Vision

At South Prince, were all about getting people together and enjoying each
others company. We believe that what we do can weave a fabric of positive
relationships and experiences that stretch from our coffee houses and out into
the world.

Our Vision

Improve the lives of our guests

Support the communities we serve

Promote our common humanity

Mission
We want to be a welcoming, comforting presence in every community we
serve and anywhere else we happen to show up. We know our guests have a
choice and we never want them to feel less than special.

Our Mission

Our Mission is to serve everyone better than anyone else.

Our Goals:
Accomplishing and maintaining these goals helps enliven the caf and
enhance the wholesome spirit we want to project. These goals are long term,
ongoing and ever evolving as we grow and learn our business, and are in no
particular order:

1. To maintain positive balance in our lives so that the business rounds us

out and reflects our values.

2. To embody the meaning of hospitality through a strong, reliable staff.

3. To offer our community wholesome coffee that are satisfying, great

tasting, and worth every penny.

4. To have our employees and customers feel appreciated, supported and

satisfied, every time they come in.

5. To support local, independent business and the farming community

through buying locally, keeping it simple and in season.

6. To remain connected to our community with our charitable giving.

7. To have this business comfortably support our employee family in all

ways possible.

III. Segmentation, Target, Position

3.1 Segmentation:

Initially South Prince was based as a Socio-Economic segmentation base

in consumer Markets as it has concentrated on social class particularly the
business class people those who are working at the office and wanted to have a
cup of coffee with a good atmosphere and facilities. South Prince also had
segmented his market by geographic and demographically by selecting the store
location where they can find the educated and coffee lovers.
South Prince will focus its marketing activities on reaching the College
students and faculty, people working in offices located close to the coffee shop
and on sophisticated teenagers. Our market research shows that these are the
customer groups that are most likely to drink coffee. Since, coffee consumption
is universal across different income categories and mostly depends on the level
of higher education; proximity to the College campus will provide access to the
targeted customer audience.
The chart and table below outline the total market potential (in number of
customers) of gourmet coffee drinkers in Toril, Davao City.

3.2 Targeting:
South Prince wanted to develop a reputable relationship with the
customers, Most of companies enter in a new market y serving a single
segment, and if this proves successful than they add more segments, initially
South Prince did the same thing targeted the parents with the young children
and it was hit concept and it has added more segments by including Teenagers
and developed its product range also.
3.3 Positioning:
Here in this case the South Prince has developed a unique market
position for their products because if a product is to be exactly same like the
others on the market than consumers would have no reason to buy it. South
Prince has positioned them in the market as a highly reputed .In this case
South Prince has planned his positioning in such a way that it distinguish
their products from competing brands and give them the greatest strategic
advantage in their target markets. South Prince has a descriptively simple
statement to inspire and nurture the human spirit-"one person, one cup, and
one neighborhood at a time". South Prince positioning strategy was customer

base so that it can give the best service more than what the customers expect.
South Prince has gained a competitive advantage over customer satisfaction
and employee satisfaction as South Prince had developed its positioning
strategy based on the customer and provided the utmost facility in terms of
layout, furniture to the music, and in terms of employee satisfaction South
Prince make employee as a partners and gave them a personal security with a
freedom to participate in the every decision of the business and make it
successful

IV. SWOT Analysis

The following SWOT Analysis captures the strength and weaknesses within the
company and describes the opportunities and threats facing the South Prince
Coffee Shop

Company

South Prince Coffee

Strength

Shop
Strong

East Coffee Bar

Attractive

location
Lots of coffee

relationship
with party

Honey Bear Coffee

Shop
State-of-the art

flavor

vendors.
Establishment

equipment
Excellent
brand name
and visibility.

near from
schools and

offices.
Excellent staff
who are highly
trained and
customer

Weaknesse

attentive.
A limited

The

marketing

operation is

budget to

seldom.

develop brand

awareness.
Lack of
individual
attention to

The products
are expensive.

loyal
customers.
Opportuni

ty

Accessible to

Opportunity

The

all customer

to promote

opportunity of

specially for

their

offering new

travelers
Cheaper

products.
Tied up with

service.
Merchandising

The building is

varieties of

other

coffees.

companies
for

Threats

Emerging local

competitors.
Unorganized

markets.
Competition

from taverns.

promotions.
Big
competitors

prone from bad

inside the

elements.
Dependent on

area.
Limited

government

income of

commodity

target

rates.

market.

V. Marketing Mix (4Ps)

5.1 Products

South Prince coffee shop specializes in coffee and related beverages. The
company sells coffee and cakes.

There are many different flavors and you can get them as Cappuccino,
Latte, Flat White, Hot Chocolate, Mochaccino, Long Black, Chai Latte,
and Hot tea.

Some of their most popular teas fall into the Chai Latte category. Its a
spicy black tea with cardamom, cinnamon, black pepper and star anise..

A South Prince Coffee Shop Cappuccino is similar to a latte but with

more foam.

South Prince Mocha is an espresso, steamed milk and chocolate with

whipped cream on top.

5.2 Pricing

In the form of prices for our products, the main objective to achieve is to
provide an affordable and reasonable one, which is deemed by the
majority of the crowd. The price must be relevant towards the products
in quality and quantity, so the question we ask ourselves must be "how
much is a customer willing to pay for these products?". Only then, will

we be able to place ourselves in the shoes of the customers and

understand their train of thoughts and considerations with regards to
paying for a certain product.

Also, the cost of production for the products itself, MUST be taken into
consideration. Currently, the ideal cost would be one that will give us an
edge over our competitors eg. East Coffee Bar, Honey Bear Coffee Shop
by having a slightly lower price, yet being able to earn a reasonable profit
margin
5.3 Pricing
The location of the store is crucial towards the business and human
traffic of the shop. In prime locations, the cost of the rent is likely to be
higher by a significant amount of money; however, there will also be a
bigger flow of human traffic and is essential that leads to an increase in
profits when more customers patronize the shop.

In the case of a "PRIME" area, it is one that is conveniently accessed,

equipped with the right environment which suits the ambience of the
shop, and also prospering and thriving with other list able shops that
will draw in the crowd.

5.4 Promotion

Advertisements
We will definitely utilize the web to spread the word on our products as we are
familiar with many of the online platforms and all good companies use them.
We will use blogs and pay-per-click advertisements. We will also create a site for
our company and add as many links to other relevant sites so as to increase
our ranks in search engines and in advertisement sites such that it is easier for
people to discover over products, thus attracting more customers. We will
advertise in newspapers too to reach out to more people. Other than using
newspapers and the web, we will also use more traditional methods such as
through brochures, catalogs and posters. As we are a new company and do not
have a very big capital, we will not be advertising on expensive platforms such
as on television.
Design
We want to have a kind of colour scheme in which when people see it, they will
instantly be able to identify it as belonging to us. The colour scheme will be

used in the interior design. For our logo, it will be something simple but can be
easily identified.
Customers
We want to have customers who are loyal, who patronizes our shop often and
recommends our products to their friends rather than just trying to get more
customers. We will use marketing techniques which do not involve constantly
pestering people to buy but rather asking for their opinions about our
products. We will try to be polite and friendly and solve complaints as quickly
as possible to increase our credibility and hence, attract loyal customers who
regularly patronize our outlets.

VI. Marketing Goals and Objectives

Goals: To provide a substantial income and to create a business and working
environment where both the customer and employee are treated with dignity
and respect.

South Prince Coffee Shops objectives for the first year of operations are:

Become selected as the "Best New Coffee Shop in the town".

Turn in profits from the first month of operations.

Maintain a 40% gross margin.

Decreasing 2% of cost expense annually.

VII. Marketing Strategies

South Prince Coffee Shops Incentive Programs

Reward your satisfied customers with a punch card or frequent customer card
that gives them a free drink after so many purchases. If you use a point-of-sale
terminal that keeps track of individual purchases, offer a freebie such as a
specialty drink or baked goods to thank your loyal customers. Hand out
discount cards to area employees, ask them to sign their names on the back,
and encourage them to give the cards to people so they visit your shop. Keep
track of who sends people, and reward that person with free drinks or baked
goodies as a thank you.

Provide Extras
To get people to linger in a coffee shop, you need to offer more than just tasty
brews. To entice these people to your store, offer extras such as wireless
Internet access and space to work at a table. If you cater to business owners or
travelers, provide a few computer terminals. To entice people to buy more, offer
free samplings of your coffee and baked goods, and create a package deal that
includes a drink and baked good for a lower price than when bought
separately.

Branding
Carefully crafted signs that instantly help passersby see what you offer help
bring in people once the morning rush finishes. Develop an eye-catching logo
related to coffee, and use it on the sign to build your brand. Check local city
ordinances to determine the largest sign youre allowed to put on the sidewalk
in front of your shop, and use that size sign to make it visible to automobile
traffic. List the products your shop offers, such as gourmet coffee, specialty
drinks, baked goods and Internet access. For more branding, add stickers with
your logo to cups or use sleeves with your logo and website address on them.

Cross-Promote
Get involved with nearby businesses and develop a cross-promotional
marketing strategy that builds traffic for all of you. Introduce yourself by
walking over and surprising a nearby business with a few cups of coffee. Start
with businesses that offer services or products where their customers are
required to wait 10 minutes or more, such as oil and lube change stores, hair
stylists, Laundromats, and repair shops.

VIII. Implementation Activities

Implementation Activity
Activitie
s

Ja
n

Feb

Mar Apr

May Jun

Jul

Aug

Sep
t

Oct

Nov

De
c

Flyers

Ads and
Tarpauli
n and
other
strategi
c
relation

ship
Equipm
ent
Check
and
mainten
ance

IX. Budget and Sales Forecasts

9.1 Sales forecasts

Year 1
January
February
March
April
May
June
July
August
Septembe
r
October
November
December
Total

Sales
Expense
Profit
171,445.00
89,206.01
82,238.99
198,555.00
108,075.05
90,479.95
183,735.00
104,630.82
79,104.18
208,735.00
119,839.91
88,895.09
198,290.00
111,036.11
87,253.89
160,675.00
95,724.88
64,950.12
154,330.00
95,874.33
58,455.67
168,360.00
100,248.68
68,111.32
197,295.00

110,660.83

86,634.17

189,370.00
189,235.00
214,985.00

106,586.27
107,076.13
138,295.13

82,783.73
82,158.87
76,689.87

2,235,010.00 1,287,254.15

947,755.85

Profit of Drinks and Desert

37515585%,40%
57260000%,60%

1
2

Sales

Value in Peso

140,000.00
120,000.00
100,000.00
80,000.00
60,000.00
40,000.00
20,000.00
0.00
January
February
MarchApril May June JulyAugust
September
October
November
December

Drinks
Desert

Months

Sales
January
February
March
April
May
June
July
August
September
October
November
December

Drinks
109,745.00
97,755.00
88,735.00
86,335.00
87,990.00
80,675.00
73,430.00
83,860.00
97,195.00
93,270.00
92,635.00
98,185.00

Desert
61,700.00
100,800.00
95,000.00
122,400.00
110,300.00
80,000.00
80,900.00
84,500.00
100,100.00
96,100.00
96,600.00
116,800.00

Profit
Drinks
51,388.99
40,079.95
31,604.18
27,695.09
32,103.89
24,950.12
18,005.67
25,861.32
36,584.17
34,733.73
33,858.87
18,289.87

Desert
30,850.00
50,400.00
47,500.00
61,200.00
55,150.00
40,000.00
40,450.00
42,250.00
50,050.00
48,050.00
48,300.00
58,400.00

Total
82,238.99
90,479.95
79,104.18
88,895.09
87,253.89
64,950.12
58,455.67
68,111.32
86,634.17
82,783.73
82,158.87
76,689.87

Total

1,089,810.0
0

1,145,200.0
0

375,155.8
5

572,600.0
0

947,755.8
5

9.2 Expenses
Cost and Expenses
January
Rent
Machine and Equipment Maintenance
Business Annual Registration
Promotion
Telephone
Coffee Ingredients
Cakes
Labor salaries and wages@3
Light and Water Expenses
Total

15,000.00
5,000.00
500.00
100.00
999.00
5,552.06
30,850.00
27,180.00
4,024.95
89,206.01

36402.06

February
Rent
Machine and Equipment Maintenance
Promotion
Telephone
Coffee Ingredients
Cakes
Labor salaries and wages@3
Light and Water Expenses
Total

15,000.00
5,000.00
1,000.00
999.00
3,903.22
50,400.00
27,180.00
4,592.83
108,075.05

March
Rent
Machine and Equipment Maintenance
Promotion
Telephone

15,000.00
5,000.00
150.00
999.00

54303.22

Coffee Ingredients
Cakes
Labor salaries and wages@3
Light and Water Expenses
Total

3,408.88
47,500.00
27,180.00
5,392.94
104,630.82

50908.88

April
Rent
Machine and Equipment Maintenance
Promotion
Telephone
Coffee Ingredients
Cakes
Labor salaries and wages@3
Light and Water Expenses
Total

15,000.00
5,000.00
100.00
999.00
3,408.88
61,200.00
27,180.00
6,952.03
119,839.91

64608.88

May
Fixed Expense
Rent
Machine and Equipment Maintenance
Promotion
Telephone
Coffee Ingredients
Cakes
Labor salaries and wages@3
Light and Water Expenses
Total

15,000.00
5,000.00
150.00
999.00
2,736.09
55,150.00
27,180.00
4,821.02
111,036.11

57886.09

June
Rent
Machine and Equipment Maintenance
Promotion

15,000.00
5,000.00
150.00

Telephone
Coffee Ingredients
Cakes
Labor salaries and wages@3
Light and Water Expenses
Total

999.00
2,043.95
40,000.00
27,180.00
5,351.93
95,724.88

42043.95

July
Rent
Machine and Equipment Maintenance
Promotion
Telephone
Coffee Ingredients
Cakes
Labor salaries and wages@3
Light and Water Expenses
Total

15,000.00
5,000.00
100.00
999.00
1,750.61
40,450.00
27,180.00
5,394.72
95,874.33

42200.61

15,000.00
5,000.00
100.00
999.00
4,999.56
42,250.00
27,180.00
4,720.12
100,248.68

47249.56

August
Rent
Machine and Equipment Maintenance
Promotion
Telephone
Coffee Ingredients
Cakes
Labor salaries and wages@3
Light and Water Expenses
Total

September
Rent
Machine and Equipment Maintenance

15,000.00
5,000.00

Promotion
Telephone
Coffee Ingredients
Cakes
Labor salaries and wages@3
Light and Water Expenses
Total

100.00
999.00
5,739.00
50,050.00
27,180.00
6,592.83
110,660.83

55789

October
Rent
Machine and Equipment Maintenance
Promotion
Telephone
Coffee Ingredients
Cakes
Labor salaries and wages@3
Light and Water Expenses
Total

15,000.00
5,000.00
100.00
999.00
4,821.11
48,050.00
27,180.00
5,436.16
106,586.27

52871.11

15,000.00
5,000.00
100.00
999.00
4,151.52
48,300.00
27,180.00
6,345.61
107,076.13

52451.52

November
Rent
Machine and Equipment Maintenance
Promotion
Telephone
Coffee Ingredients
Cakes
Labor salaries and wages@3
Light and Water Expenses
Total

December
Rent

15,000.00

Machine and Equipment Maintenance

Fire insurance
Promotion
Telephone
Coffee Ingredients
Cakes
Gift and Bonus
Labor salaries and wages@3
Light and Water Expenses
Total

5,000.00
3,000.00
150.00
999.00
5,739.00
58,400.00
15,000.00
27,180.00
7,827.13

64139

138,295.13

9.3 Contribution Margin

Contribution Margin
Per Unit
84.38-53.37
Ratio
31.01/84.38
9.3 Breakeven
analysis
(Variable
and fixed
costs)
Ave. Selling
84.38
Price
Ave. Fixed
1.65
Cost
Ave.
Variable
53.37
Cost
Breakeven
21,482.33/1-(1.65/84.38)
point in peso
Breakeven
21,482.33/1.65
point in Unit

X. Evaluation of Results
10 a. Measurement of Performance

31.01
36.75%

21,910.78
13,020

Sales
Cost
Net
Income
Percentag
e

Year 1
2,235,010.
00
1,287,254.
15
947,755.85

Year 2
2,458,511.
00
1,366,932.
12
1,091,578.
88

Year 3
2,704,362.
10
1,395,450.
84
1,308,911.
26

Year 4
2,974,798.3
1
1,356,508.0
3
1,618,290.2
8

Year 5
3,272,278.
14
1,361,267.
71
1,911,010.
43

44.40%

48.40%

54.40%

58.40%

42.40%

XII.
Control Measures
11.a Contingency Plans

The purpose of South Prince Coffee Shop's

marketing plan is to serve as a guide for the
organization
* We need to improve our revenue percentage
as possible.
* Minimize what the possible cost that doesnt
need in a company.
* Consistent in having increase the sales.
* Study the competitors strength.
Difficulties and risks:
Problems generating visibility and awareness of the South Prince
Coffee Shop.
An entry of "conversation round tables" or other single meeting
events.

Worst case risks may include:

 Determining that the business cannot support itself on an ongoing

basis.
Having to liquidate equipment to cover liabilities.