Executive Summary

Awareness of high baked goods is on

the rise.Good cupcakes is a rare

combination of nutrition,convenience,and

luxury.Todays consumer has less time to

crete wholesome bread,but increasingly apprecites the

nutrinional and sensory benefits it provides.Good cupcakes

provides fiber and carbohydrates in a convenient,low fat

form that is portable and delicious.Good cupcakes never goes

out of styles.

House of cupcakes is a start-up bakery retail

establishment located in Brgy.Tulay na Bato,Bongabon Nueva

Ecija.House of cupcakes expects to catch the interest of a

regular loyal customer base with its broad variety of bread

and pastry products.The company plans to build a strong

market position in the town,due to the partners love of

baking.

House of cupcakes aims to offer its products at a

competitive price to meet the demand of the middle-to-

higher-income local market area residents.

The Company
 House of cupcakes is incorporated in Brgy. Tulay na Bato,

Bongabon Nueva Ecija.It is equally owned and manged by its

three (3) partners. Ms. Daneverly Suratio has experience in

sales,Mr.Airon Santiago in marketing and Ms.Robelyn Arceo

for management.The company intends to hire two full-time

pastry bakers and six(6) part-time salesclerks to handle

customer service and day to day operations.

Products and Services

House of cupcakes will stand out from the competition due

to their uniquness and outstanding quality.House of cupcakes

will offers a broad range and other pastry products as well

as our specialty,cupcakes.House of cupcakes caters to all of

its customers by providing freshly prepared pastry products

at all times during business operations. Six to eight

moderate batches of bread and pastry products are prepared

during the day assure fresh baked goods are always

available.

After establishing the business,Cupcakes will research

the possibility of producing cakes to increase revenues.This

investment would requires approximately Php.5,000 for the

purchase of equipment and ingredients.The company will also

pursue wholesale contracts.A self serve beverage cooler

filled with soft drinks will also help to increase revenues.

The Market

With bread being the countrys second staple after rice,

the bakry business is one of those ventures that are sure to

bring multiple returns with just a minimal

investment.Cupcakes is the countrys second staple and

everyone eats cupcakes.Though consumed mainly as breakfast

and snacks fare,cupcakes is also taken at lunch,usually as

burgers and even dinner time.Cupcakes is convenience type of

food. You don’t have to sit and have a formal dinner just to

eat bread. In restaurants,shops,you may get your cupcakes

right at the counter and you even don’t have call a waiter

to serve you.Cupcakes,may be consumed while walking,riding a

bus or even while whiling away time anywhere.

House of cupcakes wants to establish a large regular

customer base,and will therefore concentrate its business

and marketing on local residents,which will be the dominant

target market.This will establish a healthy,consistent

revenue base to ensure stability of the business.

Mission Statement

House of cupcakes loves to bake, through baking we aim to

connect with our community by creating great bread and

pastry products at a competitive price to meet the demand of

the middle-to-higher income local market area residents.

Key to Success

Key to success for House of cupcakes will include:

 Providing the highest quality product with personal

customer service.

 Competitive pricing.

 The neatness of the environment and the security of the

location

 Finding and hiring the most qualified and skillfull

employee.

Company Summary

House of cupcakes is a bakery managed by three

partners. These partners represent sales/management and

finance/administration areas,respectively.The parteners

will provide funding from their own savings,which cover

start-up expenses and provide a financial cushion for the

first months of operations.The company plans to build a

strong market position in the town,due to the partners

love in baking.

Start-up Plan
Start-up Cost

House of cupcakes is a start-up company.Financing

will come from the partners capital.The following chart

and table illustrate the companys projected initial

start-up costs.

START-UP REQUIREMENTS

Current Assests:Cash Php.1000,000

Required

Start-up Expenses

Legal Php.18,503.72

(license,clearance,etc.)

Building Improvements Php.50,000.00

Machineries and Equipment Php.114,650.00

Rent Expense Php.24,000.00

Advertising Expense Php.8,000.00

Contratc Labor Php.10,500.00

Total Requirements Php.307,105.00

Company Location

House of cupcakes is headquarter in the town of

Bongabon Nueva Ecija.We are located in Beside

Municipality of Bongabon we are al of our products are

made from home-made from,stored in and shipped from.

Situation Analysis

SWOT Analysis

Strengths

 We do have a creative lair

 Sustainable competitive edge of adaptibility to all

occassions,trends,and consumer market needs.

 Personal and flexible customer service.

 Good ambiance for customers.

Weaknesses

 Firt time business venture

 Start-up costs are only estimates

 Potentially could be understaffed if our product

demand increases drastically.

Opportunities

 Capitaliaze on changing market.

 Join the trend of modern cupcakes and cakes

design
  Focus on large sales through participating at

bridal fair.

 Increased demand from a successful customer

using the internet to reach new markets new

technologies that allow you to improve product

quality.

Threats

 Financial problems could threaten our first

years success

 Competitors

 The emergence of a new competitor,more

sophisticated,attractive or cheaper versions

of your product or ervice,and a downturn in

the economy-reducing overall demand.

Marketing Analysis Summary

House of cupcakes focus is on meeting the demand of a

regular local resident of Bongabon Nueva Ecija,as well as a

significant level of tourist traffic from nearby highways.

Market Segmentation
 House of cupcakes focuses on the middle and upper-income

markets.These market segments consume the majority of

pandesal and other baked goods and pastries.The price will

be kept as lower as the known bakeshops.Mark up will probabl

be from 35% to 50% depending on the quantity.

House of cupcakes has identified also its market that

consist of people who have a higher level of discretionary

to indulge in and appreciate the exquisite creativity and

flair to consume extraordinary pastry products that taste

and look good at a low price.We categorize our target market

into six namely Celebrators, Doctors,and Nurses,Comfort

Creatures,Students,and Gourmet Wanna-bes

Among potential customers identified to be a part of our

target market we have identified special events that would

involves those customers such as:

 Anniversary pastries

 Baby showers

 Birthday parties

 Bon Voyage

 Bridal showers

 Christenings

 Congratulatory celebrations
  Graduations

 Holidays,Easter,Christmas,Fathers Day,Mothers

Day,St.Patrick Day,Thanksgiving,Valentine Days,Earth

Day,Passover,Memorial Day.

 New home welcoming

 Retirements

 Weddings

 And other Special Days

Target Market

Gourmet Wanna-bes 10%

Students 13%

Mothers 14%

Comfort Creatures 15%

Doctors and Nurses 23%

Celebrators 25%

Target Market Segment Strategy

The dominant market for House of cupcakes is a regular

stream of local residents.Personal and expedient customer

service at a competitive price is key to maintaing the local

market share of this target market.House of cupcakes will

try toreach out to the market outside Nueva Ecija.

 Market Mix

Product-our product is a hig0-quality,organic dessert that

is extremely adaptable to both special events,and to the

special dietary needs of our customers.

Price-the smallest amount of our cupcakes is Php.85 each box

of six which includes theproduct and delivery of product to

consumers within Bongabon

Place-House of cupcakes will market its products

adaptability and its utility adaptability in a venue of

different online and offline approaches which include

offline and online.

Promotion-our promotional plans include but are not limited

to all social media platforms.

Market Needs

Nothing smells or tastes quite as delicious as a freshly

baked loaf of bread straight from the oven. Bread is the

countrys second staple and everyone eats bread.Though

consumed mainly as breakfast and snacks and also

appettizer,bread is also taken at lunch,usually as a burgers

and even dinner time.Cupcakes is convenience type of

food.You don’t have to sit and have a formal dinner just to

eat bread.In restaurants,you may get your cupcakes right at

the counter and you even don’t have to call a waiter to

serve you.Cupcakes can be consumed while walking,riding a

bus even while whiling away time anywhere.

Competitive Research

Competition in the local comes in many sizes and

types,from other independent bakeries to chain

stores,superstores and specialty bakeries.Local customers

are looking for a high quality product but affordable.The

leading competitors purchase and bake high

quality,ingredients,bread,pastries,and cakes.They offer a

wide variety of breads and cakes that the market is

enjoying.They bake weddding cakes,others specializes in

French pastries and serves donut. In addition to sales

through company-operated retail stores,leading competitors

sell coffee and tea products through other channels of

distribution.

Technologically savvy competitors make fresh bread and

cakes products conveniently available via mail order and

online. Additionally,mail order catalogs offering cakes,

cupcakes,breads have been made avilable by a few large

competitors.Websites offering online stores that allow

customers to browse for and purchase bread,gifts,and other

items via the internet have become more common place as

well.

Sustaiable Competitive Advantage

Based on our main competition mentioned above,House of

cupcakes actually has quite a few competitive advantages

which include ADAPTABILITY.

Strategy and Implementation

House of cupcakes will succeed by offering consumers the

lowest price.Increasing the quality of ur baked goods:we

would aim to be the cheapest producer of baked

goods.Alternatively ,we could cater to a consumer by using

organic or vegan products.We will offer consumer with value-

adding features,offering a delivery service and quick

service to be the fastest bakeshop service.

Competitive Edge

House of cupcakes competitive edge is the relatively low

level of competition in the local area in this particular

niche.We are offering the customers a completely new

experience and far higher quality produt.

Sales Strategy
 As the chart and table show,House of cupcakes anticipates

sales of about Php.5,000 in the first year,Php.3,500 in the

second year,and the Php.6,00 in the third year of the plan.

Management Summary

Ms.Daneverly Suratio has experience in sales,marketing

and management .Attended bakery management-baking course and

pure home baking experience.She has skills at producing

baked goods and marketing them as well.

Ms.Robelyn Arceo brings experience in the area of finance

and administration.

Organizational Structure

Manager/Owner
 Cashier

Sales Clerk Sales Clerk Sales Clerk Sales Clerk

Management Team

There will be a total of 2 full time position for the

management,2 full time Baker,and 4 part-

Janitor
time Sales Clerk,Cashier and Janitor.

The business will be open 7 days a week (Monday-Sunday).

Online orders can be accepted 24 hours per day.The actual

operating hours of the business will be 7:00 am-9:00pm. The

jobe descriptions are as follow.

Personnel Plan

As the personnel plan shows,House of cupcakes expects to

make significant investments in sales,sales support,and

product development personnel.

 PERSONNEL Payroll Rate

Position YEAR 1 YEAR 2 YEAR 3

Manager Php.18,000 Php.18,000 Php.18,000

Supervisor Php.18,000 Php.18,000 Php.18,000

Chief Baker Php.15,000 Php.15,000 Php.15,000

Baker Php.12,000 Php.12,000 Php.12,000

Baker Helper Php.10,000 Php.10,000 Php.10,000

Cashier Php.8,000 Php.8,000 Php.8,000

Sales Clerk 60/HR 60/HR 60/HR

Janitor Php.6,000 Php.6,000 Php.6,000

Financial Plan

House of Cupcakes

Statement of Financial condition

For the Month ended june 2021

ASSETS

Current Assets:

Cash and Cash Equivalent 482,245.00

Office Equipment 46,667.25

Inventory 250,000.00

Non-Current Assets:

Furnitures and fixtures 27,156.00

Machinaries and Equipments 114,650.00

Building Improvements 50,000.00

Depreciation 34,544.50

Total Assets: 936,173.81

LIABILITIES AND CAPITAL

Current Liabilities:

Account Payable 114,650.00

Interest Payable 65,000.00

Non-Current Liabilities:

Bank Loan 500,000.00

Partners Capital 500,000.00

Retained Earnings (243,476.19)

Total Liabilities and 936,173.81

Capital:

Year Revenue/Expenditure Forecast

 House of Cupcakes

Statement of Operation
As of June 2021

2021 2022 2023 2024

Sales 100,000.00 500,000.00 250,000.00 925,000.00

Operating
Eexpenses
Legal 18,503.72 7,400.00 7,400.00 7,400.00
Expenses
Rent Expense 60,000.00 60,000.00 60,000.00 60,000.00

Depreciation 29,929.50 3,999.50 1,000.00 1,000.00

Expenses
Salaries 134,720.00 134,720.00 158,192.00 158,192.00
Expense
Representatio 5,000.00 5,000.00 5,000.00 5,000.00
n Expense
Advertising 8,000.00 8,000.00 8,000.00 62,511.75
Expense
Repair and 5,000.00 5,000.00 5,000.00 18,000.00
Maintenance
Utilities 54,000.00 56,700.00 62,511.75 14,400.00
Rent of
Vehicle
Communication 18,000.00 18,000.00 18,000.00 2,000.00
Expense
Contract 10,500.00 14,400.00 14,400.00 14,400.00
Labor
 Republic of the Philippines
Division of Nueva Ecija
Sinipit,Bongabon
Bongabon Senior High School

Business Plan for House of Cupcakes

Submitted by:

Daneverly Suratio

Airon Santiago

Robelyn Arceo

Submitted to:

Ma’am Almyra Magnase