College of Engineering

Xavier University-Ateneo de Cagayan

IETE-13

Marketing

CHOCO BALLS WITH STRAWBERRY FILLING

Submitted by:

Lanuza, Mark Anthony M.

Bachelor of Science in Industrial Engineering – 5th Year level

Submitted to:

Ms.

November 30, 2010

Business Information

Name of Product: Choco Balls with Strawberry Filling

Address: Zone 8 Patag, Cagayan de Oro City

Contact Person: Mark Anthony M. Lanuza

Contact Number: 09153320516

Website: www.chocoballs-strawberry.com

Background

Choco balls is a product that is not new in the market, infact it is a product
commonly sold in schools. But with our product, choco balls are made with a twist. It is
filled with strawberry filling inside to give it a sweet chocolate flavor with a
mouthwatering strawberry taste that melts in the mouth. This product would be
patronized by many consumers since this product is new, tastefull and sweet,
affordable, and everyone in all ages can enjoy eating this new product. The goal of
producing this product is to promote new products in the market which are affordable
and delicious. At the same time it would give new opportunities to those small
enterpreneurs who wants to start a business, and can give work to others as well.

Core Activities

Choco balls are simple to make, even with a small capital and space the
business could still go on. The ingredients are simply mixed up then chilled and then
can be served already. All you need to do are the following:

1. Crush the chocolate biscuits until powderized

2. Mix it with a condensed milk to make it more creamier and sweet

3. After mixing it well, get a small portion of the mixture and flatten it out
 4. Place a small amount of strawberry preserved in the center then roll it
in your palms

5. Then shape it like little balls

6. Roll the chocolate balls in a plate full of desiccated coconuts, to

prevent each balls from sticking with one another

7. Then chill before serving for a more tasteful result. Then choco balls
can now be distributed to different school canteens.

Location

The product is produced at its production area at Zone 3, patag. It is where it is

produced and after the products are distributed to different school canteens in the city.
In which the primary buyers are students in gradeschool and highschool in Cagayan de
Oro City. The primary school canteens where choco balls with strawberry filling are sold
are: Xavier University High School and Grade School canteens, Lourdes Grade School
and High School Canteen, West and East City Central School Canteens, and Liceo de
Cagayan High School Canteen.

Product Description

The product is basically made of choclate biscuits and milk which makes it
criemier and sweeter in taste. Then strawberry preserved are added for a new taste of
choco balls. With strawberry filling inside, it makes the chocoballs more mouthwatering
when melted in the mouth. Choco balls when bought by consumers would make them
buy for more because of its sweetness and affordable price. It is made in a cheaper
price without compromising the quality of the product since the primary target
consumers are students.
Suppliers

The raw materials are all brought in the same store always to assure the quality
of the product. The main supplier of the ingredients used is the Makro store in
Kauswagan Highway. All the ingredients are brought there since in the production of
chocoballs, ingredients needed are in large quantities and in Makro they sell product in
whole sale and in a cheaper price.

Ownership

The chocoballs with strawberry filling is manufactured, owned and manage by a

single individual, Mr. Mark Anthony M. Lanuza. There are no partnerships made with
other companies. But the management offers franchise of the products. Small
enterpreneurs can buy choco balls with strawberry filling in large quantities in a cheaper
price, then they can sell it to their own store.

Legal Considerations

The company has complete business permits before starting the business. The
business started first in securing a certificate of registration for the business
name at the Department of Trade and Industry (DTI) since it is owned by
one individual only. Then the next permit that was secured was from the Barangay
Hall, the permit is acquired from this for clearance in the operation of the business.
Then the third permit was from the Local Government Unit (LGU), this is to ensure that
the business is registered in the municipality or city where it operates. Then next is the
Bureau of Internal Revenue (BIR), registration and obtaining permit for the business is
important in this agency to have a tax identification number (TIN) for the business. Then
the next permit that was secured was the sanitary food permits to ensure that products
are made and sold in clean manner which would not endanger the health of the buyers.
And lastly, the owner asked permission and permit to sell the product to the school
canteens mentioned above.
Costumer Description

The target costumers or buyers of this products are the grade school and high school
students, since the product is primarily sold in school canteens. This means that the product
targets a large number of consumers because it is distributed in many school canteens within
the city. Students from Xavier University High School and Grade School, Lourdes Grade
School and High School, West and East City Central School, and Liceo de Cagayan
High School are the main target costumers of this product.

Geographical Area Where the Product is Offered

The product would be manufactured and sold within the city of Cagayan de Oro and be
distributed to school canteens both private and public schools. Schools are selected as the main
area for selling since the target consumers of the product are the students.

Total Costumer potentially

There are thousands of potential costumers of this product because of the many schools
in the city, the product is readily available and accessible to its perspective buyers. The
consumer will most likely be spending 3php price per piece of the product which is based on the
price of the ingredients being used. With this price it is very affordable to its buyers, and they will
enjoy the luscious chocolate flavor of the choco balls with a twist of strawberry flavor inside.

Competition

There would be a lot of competitors with this product especially those who sell other
pastries inside the school canteen, in which they also target students as their buyers. But the
advantage of choco balls with strawberry filling is it is affordable to students and the taste is very
inviting that makes students buy for more. The main competitor of chocoballs with strawberry
filling is the product choco snow balls. It is almost similar to the product but the difference is that
the choco snow balls are smaller and it does not have a filling inside.
Costing and Pricing

The amount of money needed to start the business is not a large amount, with a
500php or less you can already start supplying chocoballs with strawberry filling in the
school canteen. The money spent for producing the product will be the determinant of
how much the selling price would be. The selling price would range from 3-4php per
piece of the chocoballs, which is made very affordable to students.

Sales Projections

Choco balls are sold per piece so it is packed per piece. In its starting sales, a
school canteen is supplied with a 100pieces of chocoballs, then increased gradually
depending on the sales. The production then would be expected to increase in a short
period of time, depending on the demand of the customers. The supply may be
increased to 150-200pieces on the succeeding days.

Marketing Plan

The promotions of the chocoballs is on the day prior to selling is that there would
be food sampling to be done of 25 pieces of chocoballs in the school canteen then on
the first day of selling the first 25 buyers will get 1 free chocoballs with strawberry filling
in every purchase. The product would be displayed in different school canteens. There
would be no advertising needed, since some customers are already familiar with the
ordinary chocoballs that are sometimes sold inside the school. The most important
promotion strategy to be used is the sampling since students would know and be
oriented to the taste of the product. Then the free chocoballs on the first day would
further encourage students to buy and taste the product.

Entrepreneur (Enterprenuers Background)

Name: Mark Anthony M. Lanuza

Qualifications: know the product well, chocoballs with strawberry filling.

Previous Business Experience and Knowledge: was able to sell the ordinary
chocoballs before together with friends. Which made the owner know the strategy of the
production of the chocoballs.

Work history: none

Key Operational Functions

The product is manufactured exclusively by the owner and other family members,
only the ingredients or raw materials are bought in the supermarket.

The steps in producing the chocoballs is easy as the following:

1. You have to crush the chocolate biscuits evenly and finely.

2. Mix the crushed chocolate biscuits and milk until all are mixed evenly.

3. Get a small portion of the mixture and make it round and flatten.

4. Put a small amount of strawberry preserved at the center and roll it in the palm to
form it a small circular ball.

5. Roll it in the desicated coconut to prevent sticking of each chocoball with one
another.

6. Chill it for a few minutes and then it is ready to be served.

7.Chocoballs are then packed into an individual packages, then stored again chilled to
maintain the freshhness of the product.

8. Then it is distributed in different school canteens for selling.

 The time needed in the production is only 1-2 hours at most. And it does not
need much skills for you to make the product, as long as you know how to mix and form
it in a small ball you can already produce the product.

In every production of chocoballs it is properly recorded, then the products

supplied to different school canteen are also recorded to keep track on how much are
the available chocoballs. The product could last a week, so if it is made earlier or not all
product are consumed for the day, it can be stored in the refrigerator up to 1week until
consumed. The supplies is in a day to day basis as well as the production.