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Feasibility Study : Cafeum Aromatico Te Amo Coffee 2nd Term 2016-2017 Page 1
TABLE OF CONTENTS
Company Name
Our Mission
Our Vision.
Our Values
Our Location.
Our Product.
Market Potential.
Introduction..
Customer Needs..
Marketing Objective.
Product Description
Market Description
Market Segmentation
Feasibility Study : Cafeum Aromatico Te Amo Coffee 2nd Term 2016-2017 Page 2
Target Market Profile..
Target Market
Market Strategy..........
Market Risks.
Risk Reduction
Safety Net.
Marketing Mix..
Product..
Price.
Place..
Promotion..
People.
SWOT Analysis..
Feasibility Study : Cafeum Aromatico Te Amo Coffee 2nd Term 2016-2017 Page 3
III. ORGANIZATIONAL FEASIBLITY STUDY25-26
IV. TECHNICAL ASPECT.27-49
Product Concept..
Benefits of the Product
Production and Equipment Materials.
Furniture and Fixture.
Cost of Production Materials and Equipment.
Production flow chart..
Detailed production Description.
Product Cost
Quality and Safety Procedure..
Stall Design & Safety procedure.
Mall Floor Plan (Dine in Corporate Perspective..
Office Perspective (Corporate Perspective..
V. SOCIO ECONOMIC ASPECT OF THE STUDY .50-51
VI. FINANCIAL.52-59
Financial Objectives.
Financial Assumption
VII. ATTACHMENT60-90
Partnership Agreement..
Articles of Incorporation and By-Laws Non Stock Corporation
VIII. RECOMMENDATION
I. DESCRIPTION OF BUSINESS
Company Name
coffee in Latin and Aromatico- which means scent that reflects the totality of our product
CafeumAromatico will be established as a sole proprietor for the first 5 years of its operation but
will eventually be eyeing to boom into a partnership and eventually a corporation. Henceforth of
Limited Liability
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Ownership easily transferable
Perpetual Existence
Raising Capital
Our Mission
Our mission is to be the leading manufacturer and producer of robusta bean product who
Our Vision
Our Vision is to be well established and a leading product of Tagaytay City carrying their
local brand/ product enough to entice a larger market out of the City.
Our Values
Our values help our business to be more direct and go to one direction.
Our Location
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will be strategically located near our farm and our consumer. We will stand our stall within Ayala
Mall, Ground Floor near the entrance and exit of (specify the wing of the mall) wherein all
Our Product
is a unique product that will delight our consumers in terms of having coffee.
This will be an inimitable approach wherein coffee product will be redirected from liquid drink
to solid cupcake and soft pancake but still has the same satisfaction for coffee lovers.
Maintaining the sweet and strong boost of coffee without much of an effort is even more
Market Potential
With the adaptive market that we have now a days, coffee product consumption has
increased from just a coffee drink instant coffee to one stop shop coffee and pastry and others
even has its drive thru service that paves its way to a more consumer oriented product. And to
this, we found such as an opportunity not just to sell coffee product but to introduce to the
market a locally made product that is easily being harvested and nurtured in the North Wing side
of the country.
The coffee bean robusta has been one of the nurtured products in Tagaytay. And as one of
the harvested product, owner/ farmer wanted to penetrate the coffee industry as well as how there
agricultural products did. And since demand for coffee product is quiet ascending, being a unique
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Coffee bean robusta, is usually bitter and strong. It is sometimes described to have a
harsh, woody, burnt taste to it. Nevertheless, with its diverse flavourful taste and aroma likened
to chocolate, and even rubber. This type of bean is used in the production of instant coffee and is
added to some espresso blends to improve crema or add a little kick. This made it an edge over
other international products and competitors carrying globally acclaimed certifications. The main
concept of the product is not only to enhance the bitter taste of the bean but to also enhance the
We, the first to introduce such made it a pioneer in the industry of manufacturing coffee ,
whilst other brands prefer to offer coffee based products with a lot of promotional re-creation of
the best known coffee brand. We opted to promote the domestically harvested bean of robusta to
which we can market the high end market offering a health efficient product.
Introduction
Coffee remains the "go-to" drink of Filipinos, a recent study by Kantar Worldpanel
revealed. But besides being the staple drink in the country, the study also found that Filipinos
Filipinos are buying coffee products close to twice a week or about 81 times a year
spending an average of Php22 per shopping trip. Heavy coffee buyers, on the other hand, buy
close to thrice a week or 126 times in a year and pending an average of Php28 per shopping trip.
Tracking the shopping behavior of 3,000 households across the country from June 2014 to June
2015, Kantar Worldpanel discovered that for every Php100 spent on beverages, Php30 is allotted
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Markets that are driving the sales of coffee mixes are Metro Manila, South Luzon, and
Mindanao. The study said that consumers from Metro Manila and Mindanao spend Php193 and
Php110 more on the average, respectively. According to Kantar Worldpanel, coffee sales grew 10
percent in June 2015, compared to its four percent in the same month last year. Data from the
study showed that the increase of purchases of coffee mixes has been consistent for the past two
years and that 93 percent of Filipino homes buy coffee mixes at least once a week.Buyers were
found to be typically Metro Manila- and urban-based and from homes with a relatively older
demographic.
"Filipinos' love for coffee is growing stronger by the year. Our data reflects their
openness to embrace different formats of coffee products as well. We anticipate this category
With this, we thought of identifying one good product that could cultivate the market of
coffee drinking people but with a twist of promoting the nutritional additives a coffee bean by
Cafeum aromatic being one of a kind coffee product provider ensures the completeness of
the product which completes the satisfaction of taking in coffee based food/ beverage. Also, with
its good brand presentation that can always be remembered by its consumers and essential to
Customer Needs
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With the undeniable vigorous behaviour of the consumers eyeing for a coffee product,
beyond satisfaction. A unique blended bitterly sweet coffee will gratify the taste buds of the
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Marketing Aspect
Marketing Objective
homegrown coffee beans of Tagaytay with the Class A Elite target market
Product Description
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CafeumAromatico will offer its target customers the best tasting coffee cupcakes,
pancakes and iced coffee beverages in the area. Our product will be known not
only for its delicious taste but also for its smooth sensing coffee aroma.
BAF Concept below
Type 2 Diabetes
Market Description
professionals, businessmen and retirees who are seeking healthier and quality
coffee products at an affordable price located In Tagaytay City. They belong to the
& Businessmen.
As a new entrant in the market, we will allocate budget for advertising and sales
Market Segmentation
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GEOGRAPHIC SEGMENTATION TAGAYTAY CITY
BUSINESSMEN
CLASS A
& high
PSYCHOGRAPHIC
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LIFESTYLE: Simple and they do not
Target Market
CafeumAromatico will primarily concentrate on Class A market the Elite
The Elite: People that are employed or self-employed with income ranging from Php
80,000.00 and above. They usually live in large homes in exclusive neighborhood.
They are found to exhibit a sense of social responsibility. They patronize fancy,
expensive items but they do not display their wealth & properties. This group is a
DESCRIPTORS IDENTIFIERS
WHO THEY ARE? CLASS A
MALLS STORES
WHERE THEY BUY?
CAF
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HOW THEY BUY? PAY IN CASH/CREDIT CARDS
Competitors
Starbucks first open in 1971 at Seatlles Pike Place Market. Offering Coffees,
teas, pastries, sandwiches, salad, oatmeal, etc. with now over 24,000 stores
over70 countries.
Bag of Beans is specialized in gourmet and all time favorite dishes, freshly
baked breads, home-made recipe pies, well blended drinks and aromatic
freshly brewed coffee. They also offer breakfast & brunch buffets every
weekend and holidays.
Coffee Bean & Tea Leaf is an American coffee chain founded in 1963. It is
owned & operated by International Coffee & Tea LLC with over
MARKET STRATEGY
strategy. With the innovative approach of the coffee bean robusta that has been packed and
served to delight classes of Elite circle. The owners shall also be the primary servers and order
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takers to make our consumers feel the personalized service (care, concern) that the company has
to offer.
Aside to that, it will achieve to use undercover marketing strategy simultaneously by silently
promoting the agriculture of Tagaytay, promoting the primary product used which is home
grown, nurtured and harvested directly from the locals of Tagaytay proper.
To this effect, blue ocean approach may not be considered by the gigantic competitors in the
market but as a start-up business. These two primarily used strategies will penetrate the target
Market Risks
consumers to accept
our product
Increase brand
Emerging
Product imitation High Risk and advertising
competition
efforts
Fortuitous events
Insufficiency of raw Produce own raw
and natural Low Risk
material supply materials
calamities
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Consumers tend to Innovate product
commodities
Total Quality
Spoilage of raw
Management
Damaged product materials and Low Risk
Invest in
packaging
machineries
Risk Reduction
The market risks involved with our product are as seen on the table above. Since that we
are new entrant in the market. We would like to focus on the first risk: Market Acceptance.
Our competitor coffee shop brands that are well known today even without advertising.
This can result to our target consumers to refuse our brand because we have not established
credibility yet. To mitigate risk, we will conduct taste test to the market and ask if the test market
Safety Net
As an entity that starts to be as a Sole Proprietor, it has to have its safety nets to ensure its
continuity. Thus, the following safety nets shall be used so as to protect the operations,
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For the first year of operation, the total income after tax shall be deducted with 8% in
which it may be subdivided per quarter having at least 2% per quarter as protection.
Insurance
It may me be too costly to have a General Liability Insurance as a sole. But since the
company is targeting to expansion, as good insurance the business must start from day
Marketing Mix
Product
Our product is made from home grown freshly brewed coffee beans of Tagaytay, blended
with special ingredients to come up with smooth sensing coffee aroma that will surely delight
your senses. With the principal product carrier such as Cafeum Pancakes, Cafeum Cupcakes and
Cafeum Jelly Frappe that will utterly be known to set forth the standard of coffee lovers, will
Price
Lets face it. Being a local brand needs to have a good pricing especially as it only begins
to make a name in the industry. Thus, the pricing of the product will then be lower than those of
Feasibility Study : Cafeum Aromatico Te Amo Coffee 2nd Term 2016-2017 Page 17
the competitors wherein it will help recognize the product of quality with a good and reasonable
pricing.
Place
We will initially offer our product through Serin Ayala Mall Stall as a distribution outlet
in the first 6 months. After that duration, we will start to move to a bigger outlet to add chairs,
table design and create good ambiance to give a quality coffee experience with our customers.
Promotion
Website
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In this digital age, Internet and Social media is very powerful tool in advertising. We will
set up a website so that we may advertise our product in the internet. We will also create and
account to Facebook & Twitter to promote our product as well as the company.
In product testing we will be offering free taste of our product in the stall and along the
walkway of the Mall and from the point of entry and exit.
We will be making flyers and brochures that will contain important information regarding
the product. We will be distributing these along with the product sampling for brand awareness.
Promotional strategy
On the day of the product launching, the product with its Unique Selling Proposition with
utterly sweet and bitter taste of home grown coffee bean of Tagaytay will be the most sought
TAGLINE: CafeumAromatico
TeAmo Coffee
This USP will be used a principal positioning of the brand and the product which will
start in Tagaytay.
PEOPLE
SWOT ANALYSIS
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STRENGTHS WEAKNESSES
Products : Each product contains healthy Less popularity and reputation compared to
Benefit others
STRENGHTS
Our products are made of homegrown high grade beans of robusta harvested from the
City of Tagaytay. Robusta has low acidity, high bitterness and more antioxidants than Arabica
coffee. Robusta also has lower sugar content over Arabica. This will give our customer coffee
Price Competitiveness
The reasonable price of the product is considered as strength even though its price is very
close to its competitor, it is still of greater worth because the product offer better health benefits
to consumers.
Packaging
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Our products are will be presented with our eye-catching designed and labelled boxes for
cupcakes & pancakes. Iced coffee will be presented with uniquely bulb like glass for dine &
Location
Our location will be on Serin Ayala Mall in Olivarez Tagaytay. The location categorized
as strength and considered strategic because the place is highly commercialized and close to
WEAKNESSES
As a new entrant, Cafeum Aromatico is less popular and we are just starting to build
reputation with our customer. We consider this as a weakness because our potential customers
are not yet aware of our products and its health benefits. Adaptation of our product comes when
Experience
We are just starting our business and we are still needs a lot of improvement to make.
Even though we have less experience with our competitors, we will are still confident that our
company will be in the edge of success thru hard work, dedication, continuous innovation and
OPPORTUNITIES
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Changing Customer Taste
Consumers are never satisfied; they are always craving for something new. And this
characteristic of the consumers is an opportunity for the company despite the existence of brands
that offer the same type of product because there is still possibility that the consumers of other
brands would still try and switch to Cafeum Aromatico.
This is considered as an opportunity because the more health conscious the consumers
are the more they seek for healthier products. Cafeum Aromatico product is no doubt to be more
healthier way to enjoy coffee, there is greater opportunity that the consumers will try the product.
THREATS
Competitor
Starbucks, bag of Beans and The coffee bean already have larger part of the market share
and since we are just starting to compete with them is very risky.
Rent increases
Cafeum aromatico will put its business in Serin Ayala Mall thats why we consider this as
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CAFEUM
CONSUME
FARM AROMATIC
RS
O
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Organizational Feasibility
Study
We wanted Cafeum Aromatico to be well established and be the leading brand that sells
Tagaytay grown coffee flavoured products. As a new entrant, the management focuses on the
strategies in brand awareness thru various below the line promotions that will lead our
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market share from our existing competitors in the first year of operation. With our strategy in
line with our vision, Cafeum Aromatico will be using Personalized Marketing Strategy
We wanted to give our customer the best coffee experience in their lives. We wanted this
experience be catered not only in Tagaytay but also along its city neighbours. Carrying the
local coffee/product with pride, this will surely promote tourism in Tagaytay. This will also
ignite our coffee farmer to bring back healthy trade of coffee product in the land.
With these approached, we could probably say that our business existence with not only
uplift the life of the local farmer but also creating an innovative way to address the ever
With our low cost below the line promotional strategies and personalized marketing
approached, there is higher possibility will Cafeum Aromatico will continue to exist despite
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Technical Aspect
TECHNICAL ASPECT
A. Product Concept
In choosing the right product for our feasibility study, we were thinking of what kind of
business do we want to put up, is it a product or a service kind of business. We all decided to
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develop a product for our feasibility study. We have conceptualized to build our own business
which will be called as CafeumAromatico which will sell products with coffee as main
ingredients since it is suitable for the cold weather and its high supply in Tagaytay.
which includes cafeum cupcake, cafeum pancake and cafeum jelly frappe. Coffee is easily grown
especially in high lands and the benefits of it such as it can boost energy levels, burn fats, may
lower the risk of having diabetes, having an Alzheimers disease and dementia motivated the
group to innovate a product that are suitable for all health conscious customers particularly the
elites in Tagaytay. Diabetes is top 6 that causes death of Filipinos also forces the group to
develop a product that are within reach and without sacrificing the taste of home.
mood enhancer.
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Oven and Food Mixer
Measuring Utensils
Accurate measurements
will be made with the aid
of measuring spoons and
cups.
Cart
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Packaging
A customize packaging
for pancakes and
cupcakes will be use
which will be bought
from suppliers. We will
also make use of boxes in
deliveries.
Stainless Bowls
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Coffee Brewer and
Blender
Fax
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enough to take all necessary calls.
Computers
Office table
Office chairs
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Deliver Van
Dining Table
Printer
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Wall Clock
Garbage Bins
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Lockers
Meeting Table
Office Suppliers
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Filing Cabinets
Reception Table
Waste Dispenser
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Stocking Shelves
Steel Table
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Exhaust Fans
Air-conditioning Units
Bundy Clock
Hairnet
All workers must have hairnet to maintain
the sanitation.
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Medicine Kit
For every section of equipment has a first
aid kit in case of emergency.
Apron
24 Aprons will be provided for workers
expect the security and drivers
Disposable Gloves
Disposable Gloves will be used by every
production employee.
14,000.0 14,000.0
1 Oven 0 0
4,888.0 9,776.
2 Food mixer 0 00
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0 0
1,367.5 2,735.
2 Mixing Bowls 5 10
2,130.0 2,130.
1 Electric Pancake Griddle -stall use 0 00
360. 720.
2 Cupcake Tins 00 00
306. 612.
2 Rubber Spatula 00 00
1,244.6 2,489.
2 Flat Whisk 4 28
751. 1,503.
2 Wooden spoon 74 48
190. 380.
2 Metal Spatula 12 24
559. 1,118.
2 Chief's knife (set of 4) 00 00
239. 478.
2 Wire Cooking Rock 04 08
25. 150.
6 Wooden toothpicks 00 00
365. 730.
2 Pot holder & Oven Mitt 00 00
381. 1,524.
4 Wire Whist 22 88
396. 792.
2 Measuring Utensils (set 10 pcs) 00 00
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988. 1,976.
2 Pancake turner (Slice) 00 00
450. 1,800.
4 Palette knife to lift the edges (5pcs/set) 00 00
253. 1,012.
4 Cooking brush 00 00
552. 2,208.
4 Paper towels holder 00 00
125. 500.
4 Pancake Molds (rectangle) 00 00
1,097.0 2,194.
2 Blender 0 00
1,295.0 2,590.
2 Coffee Brewer 0 00
488. 976.
2 Pitcher Stainless 03 06
1,265.0 1,265.
1 Ice Box storage/cooler 0 00
369. 739.
2 Measuring spoon/cups 77 54
1,270.0 1,270.
1 Whipper/cream dispenser 0 00
968. 1,937.
2 Plastic kitchen storage box 79 58
73,709.24
Safety Materials
50.
24 Apron 00 1,200.00
20. 480.
24 Hairnet 00 00
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2. 250.
100 Disposable Gloves 50 00
750. 4,500.
6 Medicine Kit 00 00
6,430.00
35,000.0
1 Stall (Display) 0 35,000.00
300. 600.
2 Mono block Chairs 00 00
79. 474.
6 Garbage bins 00 00
35,000.00
Raw Materials
(Cupcake, Pancake, Jelly
Frappe)
Weighing &measuring
of ingredients (Raw
materials)
Mixing of ingredients
Weighing /baking of
ingredients)
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Packaging
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F. Product Cost
Sugar 6 oz 25.00
106.00 17.67
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1 pinch of salt 1 pinch 1.00
313.00 17.40
water 1 tbs -
34.00 3.40
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Condensed milk 2 cans 88.00
815.50 40.78
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G. Quality & Safety Procedure
CafeumAromatico will make sure that all raw materials are fresh and had gone a quality check. CafeumAromatico has
an official supplier of its raw materials and these suppliers meet the standards of product quality.
Apron and hairnet is a requirement to all employees to maintain the cleanliness and quality of the product.
CafeumAromatico will provide a fire extinguisher in the commissary in case of fire and a medicine kit in case of
minor accidents. CafeumAromatico will ensure the safety and security in the workplace of the employees. Accident prone
equipment such as utensils and other electrical devices will be properly checked shall be placed in a secure place to maintain
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I. Vicinity Map
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Socio- Economic Aspect
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The feasibility study will be conducted due to Tagaytay farmlands are now being sold because of the incapacity of the
farmers to generate new income strategy. Coffee is the main product for the group that will benefit the local coffee farmers of
Tagaytay and probably will motivate them to to tilt more their land with more coffee trees. By doing this feasibility study, new
income strategy will be generated such as doing coffee muffin, coffee pancakes, and iced coffee either with orange jello and
honey cocoa.
The Local Government of Tagaytay will benefit from this study since it will reduce the unemployment rate of the
locality by a minimal value in the short-run alone. The community will continue to send their children to school without selling
their ancestral lands and not leaving their children to seek employment in the lowland of Cavite. The Department of
Agriculture will also benefit from this study since the coffee industry in the country is now dying and hopefully they can
Since Tagaytay belongs to the upland locality of Cavite, coffee plantation will boost more clean and fresh air to the city.
It will also help to minimize the consumption of the community to artificial/synthetic fertilizers by the new organic fertilisers
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Financial Aspect
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FINANCIAL OBJECTIVES
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FINANCIAL OBJECTIVES
Products Year 1
Cafeum Cupcake 7,900
Cafeum Pancake 4,800
Cafeum Jelly Frappe 7,200
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1. The business name is Cafeum Aromatico solely owned by Joanna Marie Ablan with an investing total of Php500,000.00 worth
of capital.
2. Product selling price is as follows :
Cafeum Cupcake Php60.00 each serving
Cafeum Pancake Php70.00 per servings (2 pcs. Pancake)
Cafeum Jelly Frappe Php98.00 per serving
Products Year 1
Cafeum Cupcake 7,900
Cafeum Pancake 4,800
Cafeum Jelly Frappe 7,200
This selling price remains constant from year
one (1) to four (4) and increase of 10% on the selling price on the 5th year.
3. Sales volume for year one (1) as stated below:
Sales volume will increases by 5% in the second year, 30% on the 3rd year, 45% on 4th year and 42% on the 5th year.
60% fixed.
11. Salary contributions for December will be remitted on the following month.
12. Marketing expenses will increase by 20% in the 2nd year and 3rd year, 10% in 4th year and 10% on the 5th year.
13. Equipment expenses will increase by 10% per year.
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14. Income tax rate starting 2017 is 30%.
15. Regulatory contributions for December will be remitted on the following month.
16. Total production cost per servings is assumed to increase by 2% in 5th year.
17. Raw materials purchases are estimated to be 101% of the total raw materials needed for production per year.
18. Finished Goods Ending inventory is budgeted at approximately 5% of each year's expected sales.
19. Quarterly Income Tax is paid, except for the last quarter which will be paid in the following year.
15. Depreciation method used is the straight-line method and the estimated life of equipment is 5years.
18. EVAT 12% and is paid every month except for December VAT which will be paid the following year. All purchases and sales
20. A safety net of 8% per annum was secured to income after tax & deposited to the bank.
1. The business is a form of 3 partners under the same name of Cafeum Aromatico namely :
Joanna Marie Ablan
Eduardo Aranza Jr.
Novelyn L. Hiso-an
Each partner agrees to contribute an amount of Php500, 000.00 to equal on the initial investment of Joanna Marie Ablan which
is Php500, 000.00
2. Selling price of the three (3) products remains constant for the next five (5) years of operations.
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Cafeum Cupcake Php66.00 each serving
Cafeum Pancake Php77.00 per servings (2 pcs. Pancake)
Cafeum Jelly Frappe Php107.80 per serving
3. Sales volume on the six (6) years increase by 20% following the previous year.
Increase by 35% on the 7th to 10th year of its operations.
4. Product cost remains constant for the next five (5) years of operation under partnership.
5. Permit and licenses increase by 1% a year.
6. Total supplies will increase by 20% a year, of which, 20% will be on hand each year. Supplies expenses increases by 10% each
year
7. Rental expenses remain constant for the next 5 years.
8. Delivery expenses will increase by 5% per year.
9. Utilities expenses will increase by 5% in 7nd year, and 3% on the year after , 40% of which is considered variable and 60%
fixed.
10. Salary contributions for December will be remitted on the following month, with an increase of 10% per year.
11. Marketing expenses will increase by 25% for the 6th year and decrease by 5% each year following the operations.
12. Equipment expenses will increase by 10% per year.
13. Income tax rate starting 2022 is 30%.
14. Regulatory contributions for December will be remitted on the following month.
15. Total production cost per servings is assumed to remain constant.
16. Raw materials purchases are estimated to be 101% of the total raw materials needed for production per year.
17. Finish Good inventory ending inventory is 1% of the projected sales volume.
18. Quarterly Income Tax is paid, except for the last quarter which will be paid in the following year. There will be a 5% increase
each year.
19. Depreciation method used is the straight-line method and the estimated life of equipment is 5years.
20. EVAT 12% and is paid every month except for December VAT which will be paid the following year. All purchases and sales
Feasibility Study : Cafeum Aromatico Te Amo Coffee 2nd Term 2016-2017 Page 59
FINANCIAL ASSUMPTIONS (CORPORATION)
1. The business is a corporation with 4 incorporators investing a total of P3,000,000 worth of capital.
2. Selling price remain constant per year. Sales in volume will increase by 10% per year. For the first year, it is assumed that only
80% of normal capacity will be sold at a selling price of the product.
3. Utilities expense will increase by 10% per year. 40% of which is considered variable and 60% fixed.
5. Total supplies will increase by 20% a year, of which, 20% will be on hand each year.
7. Finished Goods Ending inventory is budgeted at approximately 5% of each year's expected sales.
12. Raw materials purchases is estimated to be 101% of the total raw materials needed for production per year.
Feasibility Study : Cafeum Aromatico Te Amo Coffee 2nd Term 2016-2017 Page 60
13. Quarterly Income Tax is paid, except for the last quarter which will be paid in the following year. WHT- compensation payable
is assumed to be 8% of the December salaries. This will increase by 5% per year.
14. Marketing expenses will be the same for the first two years and will decrease by 15% for the succeeding years.
16. Repairs and maintenance expense is assumed to be P10,000 on the first year and it will increase by 10% on 2011 and 2012, and
15% for 2013 and for 2014.
17. Rent expense is fixed at P80,000 a month for the next 5 years.
18. EVAT is paid every month except for December VAT which will be paid the following year. All purchases and sales are VAT
exclusive.
2029 P25
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Feasibility Study : Cafeum Aromatico Te Amo Coffee 2nd Term 2016-2017 Page 62
Attachments
Feasibility Study : Cafeum Aromatico Te Amo Coffee 2nd Term 2016-2017 Page 63
CAFEUM AROMATICO
PARTNERSHIP AGREEMENT
and
and
Feasibility Study : Cafeum Aromatico Te Amo Coffee 2nd Term 2016-2017 Page 64
Effective a January 01, 2022
Feasibility Study : Cafeum Aromatico Te Amo Coffee 2nd Term 2016-2017 Page 65
PARTNERSHIP AGREEMENT
2022.
BETWEEN:
Philippines.
- and -
WHEREAS Ms. Joanna Marie Ablan, Mr. Edmond Aranza and Ms. Novelyn L. Hiso-an
entered into the Partnership (as defined herein) effective as of January 01, 2022 on the terms and
AND WHEREAS from and following Cafuem Aromatico, the Partnership acquired
the premises and the mutual covenants, agreements and conditions herein contained, it is hereby
covenanted, agreed and declared by and among the Partners (as defined herein) as follows:
ARTICLE 1 INTRODUCTION
1.1 Definitions.
In this Agreement (as defined herein), unless there is something in the subject
matter or context inconsistent therewith, the following terms shall have the respective
(a) Accountant means such firm of accountant as the Partner Ms. Novelyn L.
Hiso-an may from time to time be the accountant of the Partnership (as defined
herein);
and similar expressions refer to this Agreement and not to any particular Article,
Section or other portion hereof, and include any and every instrument
may be deemed by the Partners to be in the best interest of the Partnership and
Ms. Novelyn Hiso-an or any other partner admitted pursuant to the provisions of
this Agreement, Partners means all of them, and the Partnership means the
(g) Person means any individual, firm, corporation, partnership, joint venture,
Words importing the singular include the plural and vice versa and words
Except as expressly stipulated in this Agreement to the contrary, the rights and
obligations of the Partners and the administration and termination of the Partnership shall
other statute which may be passed to take the place of the Act or to amend same.
2.1 Establishment.
Subject to the terms and conditions hereof, the parties hereto agree to carry on the
Business in partnership.
the Effective Date and shall continue for a term ending on the earlier of:
2.3 Name.
The name of the Partnership shall be [Cafeum Aromatico] and/or such other
name or names as the Partners may from time to time agree upon in writing and no party
shall carry on business under such name except as a Partner of the Partnership.
The place of business of the Partnership shall be at such place or places as the
the amount of P 500,000.00 being the capital contribution made by Ms. Joanna
The initial capital so contributed by each of the Partners is credited to the capital
account (Capital Account) of each Partner. The following provisions of this Section
(b) the capital funds of the Partnership shall belong to the Partners in the proportion
(c) any further contribution of capital required by the Partnership may be contributed
to the Partnership by any one or both of the Partners without limitation as to the
amount of such further capital contribution and any such additional capital
contribution shall be treated in the same manner as the initial capital contributions
(d) no Partner shall be entitled to interest on the amount of its capital contribution to
the Partnership.
In each Calendar Year all items of income and gain, and expense and loss of the
Partnership shall be determined by the Accountants of the Partnership at the end of each
Calendar Year.
Until otherwise unanimously agreed by the Partners, and subject to the provisions
of this Agreement, the net profits, if any, of the Partnership as determined at the end of
each such Calendar Year shall be allocated among the Partners in proportion to the
respective Capital Account of each of the Partners as calculated at the end of each such
Calendar Year. All expenses incurred in the course of the Business and all losses, if any,
arising therefrom shall be borne out of the earnings of the Business, or in the case of a
deficiency, the losses shall be allocated amongst the Partners pro rata to their respective
3.4 Drawings.
Each of the Partners may draw out of the Partnership, from time to time, on
account of its share of the net profits for the current year, a sum not exceeding their
respective Capital Accounts. Any sums drawn out by any Partner in excess of its share of
the net profits for any such year shall be repaid in full to the Partnership unless otherwise
Proper accounts shall be kept of all transactions of the Business and at the end of
each Fiscal Year or as soon thereafter as possible, a statement shall be prepared showing
the income and expenses of the Business for the past year and what belongs and is due to
Neither Partner shall, without the previous consent in writing of the other, sign or
encumber its share or interest in the Partnership, borrow money on behalf of the Business
Each of the Partners shall punctually pay and discharge its separate debts,
liabilities, obligations, duties and agreements whether at present or future and keep
indemnified the Partnership property and the other Partner from all actions, proceedings,
3.8 Indemnification.
If at any time either of the Partners is required to pay or become liable for more
than its proportion of the Partnership debts as provided for in this Agreement, that Partner
shall have as against the other Partner a right of recovery of the appropriate proportion of
the payment or indemnification against such liability, and the Partner shall have, on
becoming liable for such debt, the first lien or charge on the capital and all other interest
ARTICLE 4 MANAGEMENT
4.1 Management.
Final authority, management and control of the business and affairs of the
The Partners may at any time and from time to time by resolution passed at a
meeting of the Partners delegate any power or authority relating to the management of the
business and affairs of the Partnership to any Partner and the exercise of any such
authority or authority by such Partner shall be valid and binding upon all Partners until
Meetings of the Partners shall be held at the principal office of the Partnership, or,
Meetings of the Partners shall be held from time to time at such time and on such
Each Partner grants to the other Partner for such time as he remains a Partner to
this Agreement, an irrevocable power of attorney for the purposes of filing any notices or
Until changed with the unanimous approval of the Partners, the Calendar Year
The Partners agree that the Partnership shall enter into banking arrangements with
Banco De Oro Unibank (BDO) bank as the Partners shall agree on. All cheques, drafts
and other instruments and documents on behalf of the Partnership may be signed by any
one of the Partners alone, unless otherwise agreed between the parties. All Partnership
money shall, when received from time to time, be paid and deposited with the bankers of
Complete and accurate books of account shall be kept at the principal place of
business of the Partnership and shall show the condition of the business and finances of
the Partnership, and each Partner shall have access to, and may inspect and copy, any part
thereof.
name of a trustee, all Partnership property shall be registered in the name of the
5.1 General.
agreed to in writing by the Partners, no Partner may sell, assign, convey, transfer,
mortgage, charge or otherwise encumber all or any part of its share or interest in the
Partnership.
5.2 Dissolution.
Partners passed at a meeting of the Partners called for that purpose. The Partnership may
5.3 Determination.
In the event of the dissolution of the Partnership, the Partnership shall terminate
and a proper accounting shall be made of the capital and income accounts of each Partner
and the profit or losses of the Partnership to the date of dissolution by the Accountants.
The assets of the Partnership shall be liquidated and the proceeds of such liquidation shall
(a) firstly, to repay all costs, debts, expenses, liabilities and obligations of the
Partnership;
(b) secondly, to pay to each Partner its share of the capital; and
In the event that such liquidation proceeds shall not be sufficient to satisfy the liabilities of the
Partnership, each of the Partners shall contribute its pro rata share, as determined in accordance
with their individual Capital Accounts of the Partnership, of such further funds as shall be
In the event that any Partner (in this Section 5.4 called the Transferor),
pursuant to the terms and conditions hereof, purports to transfer all, but not less than all,
of its interest or share in the Partnership to any Person (such Person in this Section 5.4
called the Transferee), then no such transfer shall be made or shall be effective until
the Transferee enters into an agreement with the other Partner hereto whereby the
Transferee agrees to assume and be bound by all of the obligations of the Transferor and
In the event that any Partner shall at any time purport to transfer, charge or
mortgage its interest or share or any part thereof in the Partnership in violation of the
provisions of this Agreement, then the other Partner shall, in addition to any rights and
6.1 Headings.
The headings of any Article, Section or part thereof are inserted for purposes of
convenience only and shall not form part hereof and shall not be considered in the
interpretation hereof.
6.2 Notices.
officer of the party for whom it is intended, or mailed by certified or registered mail,
officers as a party may from time to time advise to the other parties by notice in writing.
The date of receipt of any such notice, demand, request, consent, agreement or approval
aforesaid, the second business day following the date of mailing, or if delivered via telex,
shall not affect any other provision hereof, but this Agreement shall be construed and
This Agreement embodies the entire and final agreement of the Partners with
verbal or otherwise, exist between the Partners except as herein expressly set out.
6.7 Amendments.
Agreement shall be valid unless it is in writing and signed by each Partner hereto and any
have the same effect as if they had been originally embodied in and formed a part of this
Agreement.
6.8 Time.
The Partners hereto, and each of them, covenant and agree that each of them shall
and will, upon reasonable request of the other Partners, make, do, execute or cause to be
made, done or executed all such further and other lawful acts, deeds, things, devices and
assurances whatsoever for the better or more perfect and absolute performance of the
6.10 Enurement.
This Agreement and the provisions hereof shall enure to the benefit of and shall
be binding upon the parties hereto and their respective successors and permitted assigns.
6.11 Counterparts.
to be an original and all of which taken together shall constitute one and the same
agreement.
Agreement this day of [], to be effective as of the Effective Date in accordance with
[]
Per:
Name:
Title:
Per:
Name:
Title:
[]
Per:
Name:
Title:
Per:
Name:
Title:
Articles of Incorporation
Of
The undersigned incorporators, all of legal age and majority of whom are residents of the
Philippines, have this day voluntarily agreed to form a non-stock corporation under the laws of
AND WE HEREBYCERTIFY:
SECOND: That the purpose/s for which such corporation are incorporated:
PRIMARY PURPOSE
To engage in a business in pastries using coffee as the main raw material for the products such as
coffee drink with coffee jelly, coffee cupcake, coffee pancake and other product innovation in the
SECONDARY PURPOSE
To promote the local coffee bean of Tagaytay to investors in order to generate employment for
Caviteos.
Provided that the corporation shall not solicit, accept or take investments/placements
Philippines;
FOURTH: That the term for which said corporation is to exist is 50 years from and after
FIFTH: That the names, nationalities and residences of the incorporators are as follows:
nationalities and residences of the first trustees of the corporation are as follows:
Y
Ablan, Joanna Filipino Manila, Philippines
EIGHTH: That Hiso-an, Novelyn has been elected by the members as Treasurer of the
corporation to act as such until his successor is duly elected and qualified in accordance with the
by-laws, and that as such Treasurer, he has been authorized to receive for and in the name and for
the benefit of the corporation, all contributions or donations paid or given by the members.
NINTH: That no part of its income is distributable as dividends to its members, trustees
or officers subject to the provisions of the Corporation Code of the Philippines on dissolution.
Provided, That any profit obtained by the association as an incident to its operation shall,
Article II, subject to the provision of Title XI of the Corporation Code of the Philippines.
TENTH: That the incorporators and trustees undertake to change the name of the
directive from the Securities and Exchange Commission that another corporation, partnership or
person has acquired a prior right to the use of that name or that the name has been declared as
19th day of January 2017, in the City/Municipality of Tagaytay, Province of Cavite, Republic of
the Philippines.
TIN-456-477-123 TIN-458-456-789
TIN-432-678-657 TIN-457-765-134
BEFORE ME, a Notary Public, for and in Tagaytay, Philippines, this 19 th day of
TIN-456-477-123 TIN-458-456-789
TIN-432-678-657 TIN-457-765-134
known to me and to me known to be the same persons who executed the foregoing Articles of
Incorporation constituting of four (4) pages, including this page where the acknowledgement is
written, and they acknowledged to me that the same is their free act and voluntary deed.
NOTARY PUBLIC
BY LAWS
OF
CAFEUM AROMATICO
b) Special meetings of the board of trustees may be held at any time upon the call of the
c) Meetings of trustees may be held anywhere in or outside of the Philippines, unless the
by-laws provide otherwise. Notice of regular or special meetings stating the date, time
and place of the meeting must be sent to every trustee or trustee at least one (1) day
prior to the scheduled meeting, unless otherwise provided by the by-laws. A trustee
b) Written notice of regular meetings shall be sent to all members of record at least two
(2) weeks prior to the meeting, unless a different period is required by the by-laws.
d) Written notice of special meetings shall be sent to all members at least one week prior
municipality where the principal office of the corporation is located, and if practicable
IV. THE FORM FOR PROXIES OF MEMBERS AND THE MANNER OF VOTING
THEM
a) Members may vote in person or by proxy in all meetings of members. Proxies shall
be in writing, signed by the member and filed before the scheduled meeting with the
corporate secretary. Unless otherwise provided in the proxy, it shall be valid only for
the meeting for which it is intended. No proxy shall be valid and effective for a period
a period exceeding six (6) years, or a violation of this Code, committed within five
(5) years prior to the date of his election shall qualify as a trustee. No person shall be
and all property of the corporation be controlled and held by the board of trustees to
reasonable per diems. Any compensation may be granted to trustees by the vote of the
members meeting, In no case shall the total yearly compensation of trustees, as such
trustees, exceed ten (10%) percent of the net income before income tax of the
a) Immediately after their election, the trustees of a corporation must formally organize
may not be a trustee, a SECRETARY who shall be a resident and citizen of the
Philippines, and such other officers as may be provided in the by-laws. Two (2) or
more positions may be held concurrently by the same officer, however no one shall
same time. The officers of the corporation shall hold office for one (1) year and until
the successors are elected and qualified. The officers of the corporation shall perform
a) The fiscal year of the corporation shall begin on the first day of January
and end on the last day of December of each year.
VIII. SEAL
a) Matters not covered by the provisions of these by-laws shall be governed by the
present at said meeting and voting thereat in favor of the adoption of said by-laws, have
hereunto subscribed our names this 19th day of January 2017 at Tagaytay, Philippines.
TIN-456-477-123 TIN-458-456-789
Recommendation
We therefore conclude that having this feasibility study will definitely promote
not just a home grown product of Tagaytay but definitely will push the agriculture of the
City. Binding it to entice more eco-tourism friendly guests to identify what has been the
"top of the mind" or "newest trend". It will make not just its competitor think twice but
makes this feasibility study doable to the market and ofcourse with the economic profile
of Tagaytay City.