CAKEN COMPANY
A Microbusiness Plan
Presented to The Faculty of
National University - Manila
In Partial Fulfillment
Of the Requirements for the High School Diploma of
Accountancy, Business and Management Strand
Technical Vocational and Livelihood Education-Cookery
Technical Vocational and Livelihood Education-ICT
Leader:
BOLA, KENETH M.
Members:
DORINGO, JULIAN D.
ONG, MARK BRANDON V.
REYES, STEPHEN REIN B.
SUAREZ, ROXETTE C.
ZAFRA, MARY CLAIRE L.
OCTOBER 2022
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CHAPTER 1
INTRODUCTION
1.1 Short Overview of the Business (History)
Many food trends have been popular online in the past few years. The Korean bento cake
is the most recent item to capture people's attention. In India, bento cakes, also known as
small or lunchbox cakes, have gained widespread popularity. These artistically beautiful
little cakes range in weight from 240 to 400 grams and are only two to four inches in
diameter. These eye-catching treats with humorous messages have recently taken over
Pinterest and Instagram feeds and is ideal for individual servings. Although the term
"bento" is a Japanese word that translates to "convenience," the notion of packing lunch
boxes with fresh fish, meat, vegetables, and rice or noodles was invented in Japan in the
12th century. Bento cakes were first discovered and made famous in the bakeries of South
Korea. Bento boxes are single-portion takeout or home-packed meals packaged in
wooden lacquered boxes for convenience in Japan. Bento boxes quickly gained popularity
in neighboring nations, including South Korea, Taiwan, and China. The latter took it further
by producing kawaii (cute) lunchbox "cakes-on-the-go" at many Korean bakeries.
1.2 Statement of Business Purpose
Mission
To provide our customers with a wonderful customer experience, tasty, high-quality cakes,
and to contribute to the happiness of our employees, the community, and the environment.
Vision
By 2027, we aim to be the most outstanding seller of bento cakes that provides the best
customer experience and exceptional quality, service, cleanliness, and value.
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1.3 Statement of Business Funding
The business received no specific grant or donations from any funding agency in the
public, commercial, or not-for-profit sector, including its subsidiaries and affiliates. All the
cash and other assets used came from our hard-earned money, thus, our expense. As
future business owners, we want our business to thrive from our sweat and blood. Further
funding will be generated from the owner's funds and income generated by the business.
Our school — National University, supported this business work.
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CHAPTER 2
DESCRIPTION OF BUSINESS
2.1 Company Ownership
The six proponents who invested equally each own a start-up company called Caken
Company through a general partnership. A general partnership is an arrangement for
starting, establishing, and managing a business with shared duties amongst more than
two partners. When starting a business, the Company believes that this business plan is
the most typical. Each of the supporters will be accountable for the Company's operations
and will be held personally liable for all debts and commitments. Because it is
straightforward to start and file taxes, this sort of business organization is prevalent among
other business models. A general partnership is simple to create since it has the
advantages of being more straightforward, less expensive, and require less paperwork
than creating a corporation.
Partner's Names
Partner's Equity (Contribution)
Bola, Keneth M.
P1,600.00 (16%)
Doringo, Julian D.
P1,600.00 (16%)
Ong, Mark Brandon V.
P2,000.00 (20%)
Reyes, Stephen Rein B.
P1,600.00 (16%)
Suarez, Roxette C.
P1,600.00 (16%)
Zafra, Mary Claire L.
P1,600.00 (16%)
Total
P10,000.00 (100%)
Table 1: Equity Contribution
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2.1.1 Organizational Chart
Figure 1: Organizational Chart
2.2 Description of Product
'Ocakes' are tiny cakes with a maximum diameter of four inches packaged within a
takeaway box. In addition to its small size, it is renowned for its flawless calligraphy, which
may be customized for the occasion, and it's perfectly piped pastel whipped cream or
buttercream. Depending on what the consumers prefer, it can be designed by them or by
us. These cakes can be sent to show love, thanks, or even to tell someone they are
missing them. The cake truly is the answer to all our emotional turmoil. Bento cakes are
handy for small gatherings that do not require a large cake—for instance, passing their
online examinations. Many people cannot rejoice with their loved ones because the
pandemic is still going on. Once again, a bento cake comes to the rescue and prevents
people from purchasing a regular cake for a family of two. They also make lovely gifts
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because they are both edible and beautiful. Seeing these gorgeous sweets would melt
customers' friends' and family's hearts because they would not have anticipated it.
2.3 Description of Business Location
The business is located on the 1st floor, 8 P. Garcia St., Quezon City. The Barangay
that cover our location are Barangay San Antonio, Katipunan, and Bungad. This location
is densely populated with residential and commercial establishments on the corner, such
as Robinsons Easymart, I Love Milktea, Thirstea, and many more. The business could
attract many customers by placing the store beside Robinsons Easymart where people
always come by.
Figure 1: Location
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CHAPTER 3
MARKET ANALYSIS/DESCRIPTION
3.1 Target Market and Demographics
3.1.1 Description of Customers
3.1.1.1 Target Market Demographic Profile
Gender
Figure 3: Gender of the Respondents
The pie graph above reveals that 73.3% of the respondents were female, which
clearly indicates the gender breakdown of our sample. Male respondents, on
the other hand, made up 26.7% of the population sample. With the aid of this
graph, the Caken Company will be better able to understand the references
that both men and women provide for the themes, designs, and features of our
future products. With this idea in mind, the Company will work to produce a
variety of designs that are suited to each gender's tastes, as well as a neutral
style of design that is suitable for a broader spectrum of people. Caken
Company intends to consider basic and even extravagant designs to give
clients more choices when considering the purchase of cakes. We can consider
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which of the two sexes would be the best target customers based on essential
factors like gender.
Age Range
Figure 4: Age Range of the Respondents
The graph indicates that, with an estimated proportion of 63.3%, most
respondents are in the 13–18 age range. The group of people between the
ages of 19 and 30 comes in second, reaching 36.7%. It demonstrates that the
most prevalent age group that we have is teenagers and young adults. Given
that the Company's target market is the population of people who are of working
age, this data result can also help us make a connection to what kinds of events
they commemorate in their everyday lives. We may presume that people in our
two main age groups—adolescents, 13 to 18 years old, and young adults, 19
to 30 years old—have many occasions to celebrate, including exams passed,
graduations, anniversaries with their boyfriends and girlfriends, friends'
birthdays, and parties. Especially during this pandemic, when little celebrations
or events take place without the formality of a big cake, we can introduce the
Ocakes to the market. With the help of this fundamental knowledge, we can
further study how various age groups feel about the designs and attributes of
our product.
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Employment Status
Figure 5: Employment Status of Respondents
The graph above illustrates the current employment status of the respondents.
It reveals that out of 30 respondents, 29 are students representing 96.7%, and
one is employed, representing 3.35%. The Company Caken will be able to
determine their job status and learn more about our target market, students.
3.1.1.2 Market Survey Result
1. Do you consume cakes?
Figure 6: Consumers of Cakes
As you can see from the graph above, the majority of the respondents,
to be exactly, 90%, are eating cakes or pastries, and only 10% of them
are not eating cakes and pastries. These findings allow the Caken
Company to determine a percentage of how many people are
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consuming cakes or pastries. By gathering this kind of information, we
can determine our target market. However, finding a customer might be
a little difficult since not everyone eats cakes or pastries.
2. Do you buy cake/pastries?
Figure 7: Purchasers of Cakes
As you can see in the graph above, most of the respondents are buying
cakes. To be exact, 93.3% of them are buying cakes and only 6.7% are
not doing so. These findings allow the Caken Company to determine
the possible buyers of our product. Gathering this kind of information
will help our company know who our future customers will be.
3. How often do you consume cakes?
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Figure 8: Respondents’ Frequency of Purchasing Cakes
As you can see on the graph above, most of our respondents (46.7%)
consume cake several times a month, followed by (26.7%) that answer
several times a year. In addition, (23.3%) answered once every three
months, and lastly (3.3%) answered that he/she consumes cake once
a week. These results enable the Caken Company to determine how
often our potential customers consume cakes. By gathering this
information, we can determine how frequently they eat cakes so that we
can prepare them.
4. When do you buy cake?
Figure 9: Respondents’ Reasons for Purchasing Cakes
As you can see in the graph above, the majority of our respondents, to
be exactly 76.7%, are buying cakes when there is a birthday, followed
by 10% that buy when there is a festive occasion, In addition, 6.7% of
the respondents buy cakes when there is Weekends/Holidays, lastly,
6.7% of the respondents buy a cake when there are parties. These
results enable the Caken Company to know when or on what occasions
our possible customers buy cakes.
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5. Where do you typically buy cakes from?
Figure 10: Respondents’ Preferred Cake Shops
As you can see in the graph above, most of our respondents (86.7%)
typically buy cakes from cake shops, followed by (10%) who typically
buy cakes from homemade or personalized, and (3.3%) who typically
buy cakes from coffee shops. These results enable the Caken
Company to find out what shops will be our greatest competitors.
6. What do you consider when buying a cake?
Figure 11: Factors influencing consumers' purchasing of cakes
Most of our respondents—93.3%—have picked taste, as shown in the
graph above. However, only 66.7% of respondents said they thought
about pricing while choosing a cake, while 19 said they thought about
appearance. The following respondents received 43.3% of the vote for
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packaging. With these results, the Caken Company can consider the
criteria mentioned above, including the product's appearance,
packaging, pricing, and taste, in particular, to provide a high-quality
product for our target market. We strive to reach customers who can
afford to purchase our goods. Knowing this kind of information enables
us to create the ideal product specifications that consider the
components that potential customers consider when buying a cake.
7. Do you like bento cakes?
Figure 12: Consumers' Perception of Bento Cakes
According to the results of the above figure, 93.3% of survey
respondents like bento cakes. Conversely, only two out of 30
respondents, or 6.7%, do not like bento cakes. We can infer from the
outcome that many potential customers are out there. The Caken
Company is of the viewpoint that by offering a product that is not only
aesthetically pleasing but also tasty and reasonably priced, we will
inspire others, particularly those who do not enjoy bento cakes, to try it.
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7. What flavor/s do you prefer?
Figure 13: Preferred flavors of Respondents
The favored flavors of our responders, which include Red Velvet,
Chocolate, Black Forest, and Vanilla, are clearly seen in the figure
above. etc. With the results in hand, the Caken Company will better
understand the target market's preferred flavors, particularly those we
do not already provide.
8. What price range do you consider for cakes weighing 300-350 grams?
Figure 14: Preferred Price Range of Respondents
As you can see in the graph above, most of our respondents (53.3%)
selected the price range of P200-P250, followed by seven respondents
with 23.3% who answered P300 upwards. On the other hand, 4 of those
respondents, or 13.3%, responded with P200–P250. P150–P200 were
the answers given by the final three respondents with a percentage of
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10%. These results enable the Caken Company to evaluate the cost of
our product and set a reasonable price for the market we are trying to
reach. Our target market is everybody who can afford to purchase our
product. We can determine the appropriate selling price by gathering
this kind of information. However, it is crucial to remember that the cost
of the ingredients we will utilize in our product will significantly impact
the cost of our product.
3.2.2 Competitive Analysis
3.2.2.1 Direct and Indirect Competitors
Our direct competitors are the ones who sell the products like ours, who are
homemade cake bakers and known brands of cake, including Red Ribbon,
Goldilocks, Contis, and many more. They are our direct competitors because
we share the same mission or purpose: to make family celebrations and giftgiving moments more meaningful on special occasions thanks to delectable
cakes. The indirect competitors are the products related to baking, such as
biscuits, cookies, and pastries. They are our indirect competitors because our
business and theirs both serve the Foodservice industry. Even if their product
has different purposes, our sales may be affected as their products may
influence our target market's purchase choice. The advantage of our product
over our competitors and why we are over them is affordable cakes that can
boost customers' creativity.
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Direct Competitors
Indirect Competitors
Table 2: Direct and Indirect Competitors
3.2.2.2 Key Barrier to Entry
The market and industry we want to enter and access our store location are
significant entry barriers. The fact that we are a home-based business and do
not have a physical location is one of the problems with accessing our store.
Even though there are more options for potential customers because more
people live nearby, it will still be an issue for those who come from other areas,
especially for those who live far away because, in addition to the fact that these
potential customers cannot visit the store, the delivery cost will also be more
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expensive than it is for those who live nearby. The most significant barrier to
our entry into the local, national, and even international markets is our struggle
to win over customers who are already familiar with our competitors' products.
Before we entered the market, numerous cake brands in the Philippines were
already well-known, including Red Ribbon, Goldilocks, Contis, and even little
home-based shops.
3.2.2.3 Uniqueness of the Product compared to its competitors
The Company enjoys a competitive advantage since we offer high-quality,
delicious cakes at a price far lower than our competitors. Furthermore, they are
half as expensive as regular cakes. The appeal of it does not end there. Bento
cakes have the advantage that they do not require the formality of a larger cake,
so that people may give them as gifts for any occasion. Our competitors'
products cannot be personalized, in contrast to ours. For instance, a customer
who purchases a cake from one of those well-known cake businesses cannot
specify a theme; only a personalized dedication can be made. Additionally,
unlike us, our competitors do not provide DIY cakes.
3.3.3 Porter's 5 Industry Framework
Threat of
new
entrants
Bargaining
power of
suppliers
Rivalry
among
existing
competitors
Bargaining
power of
buyers
Threat of
substitute
products
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Porter's 5 Industry Framework
Rivalry
among Bento cake retailers are still few and far between, at least
existing
according to web searches. There may be a bento cake that
competitors:
tastes somewhat better than ours, but because each uses a
Medium
different process and because fixed costs are high, there is still
a lot of pressure to keep prices low and keep up with
advancements in bento cake quality There are still only a small
number of businesses that sells bento cakes that you can see
online. But the differentiation is still high because each has
different methods, and there might be a bento cake that might
have a slightly better taste than ours, and there is also high fixed
cost, which will cause constant pressure for price competition
and to match improvements in the quality of bento cakes
The
threat
of Anyone can start a bento cake company with the necessary
new
entrants: supplies, knowledge, or recipe if they have those things on hand.
High
With readily available materials and equipment, a huge pool of
employable staff with baking experience, and access to any
internet advertising platform, the entrance barrier is minimal.
Bargaining
power
suppliers: Low
There are several suppliers from which we may obtain the
of fundamental baking supplies, tools, and packaging supplies like
clamshells and paper bags. Additionally, we can just buy them
at any grocery that sells them. With so many options for
suppliers, we may haggle, compare costs, and select the most
reasonable choice
Bargaining
Customers are powerful in this line of work because there is
power of buyers: always another option available to them if they are dissatisfied
High
with our products and services. As a result, we must follow their
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demands and develop a product at an affordable price that not
only satisfies the customer but also doesn't hurt our bottom line.
Additionally, we need to provide services that can appeal to
them, such free delivery to their door.
The
threat
of Customers always have a variety of replacement items in mind
substitute
as our product is consumable. The tin can cake is one product
products: High
that poses a threat to our company because of its close
resemblance to bento cakes. It is a cake that is packaged,
preserved, and kept for a long period in the refrigerator in a tin
can. Despite lacking icing, its size is roughly equal to bento
cakes. This poses a danger to our goods since consumers won't
notice a significant difference and occasionally pay less for it.
Figure 15 & Table 3: Porter's 5 Industry Framework
3.2 Marketing Strategy
3.2.1 4P's (Product, Price, Place, and Promotion)
The marketing mix is a business foundation model; it is a set of marketing tools that
the firm uses to pursue its marketing objectives in the target market. It is also used to
analyze brand and product promotion components. It provides a wide range of
recommendations for placing the ideal goods and services in the ideal settings at the
ideal time and price for the businesses. The 4 P's, which initially stood for "product,
place, price, and promotion," set the groundwork for marketers to identify their brand's
position in the market and develop the most effective marketing strategies. The
marketing mix we developed to aid in the business we are going to launch, which is
called "Ocakes," is listed below:
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Product
•
We call our bento cakes "Ocakes." "Ocakes" are tiny cakes with a maximum
diameter of four inches packaged in a takeaway box. That makes our Bento Cakes
come to the rescue and prevents you from purchasing a regular cake for a family,
friend, or loved one since they come in very handy for small gatherings.
•
If a customer wants their design, unlike any other cake from a well-known brand,
our bento cakes are unique because they can be DIY or it can be customized
depending on what design a customer wants, or it can be customized depending
on the occasion. For example, anniversaries, graduations, birthdays, Christmas,
and many more. Because of that, our product "Ocakes" can be a wonderful gift
since it is both edible and eye-pleasing.
Place
•
Since our location is home-based business, we basically operate on our
facebook marketplace; our facebook page is "Ocakes".
Price
•
Our Bento Cake business is only a start-up business, and since our target
audiences are students and couples, students cannot afford to pay high prices for
a cake because most students only use part of their allowance in school to buy a
cake, so our prices are reasonable and affordable.
•
Our bento cakes are more affordable than those of other well-known brands since
our prices range from ₱250 to ₱300. Even if our bento cake's price is affordable,
our cakes will remain high quality in taste and design.
Promotion
•
Perhaps we could have a buy 1, get four free mini cupcakes promo at the opening.
We can also give our customers a loyalty card they can use when buying from our
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shop. This card also has a benefit. For example, a customer needs to get at least
six stamps to get a free bento cake so that they will keep on coming back to our
shop.
•
We can also develop a social media marketing strategy. We will use TikTok,
Instagram, Facebook, and other social media platforms to promote and spread the
word about our bento cake.
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CHAPTER 4
FINANCIALS
4.1 Daily Operations (Sales and Expenses)
Expenses
Raw Materials
Quantity
Price
Cake Flour
1 pack
₱65.00
Eggs
1 tray
₱220.00
Milk
5 boxes
₱490.00
Butter
3 pcs
₱144.00
Cocoa Powder
1 pc
₱70.00
Sugar
2 pack
₱100.00
Whipped Cream
2 boxes
₱220.00
Powdered Sugar
2 packs
₱170.00
Choco Chips
2 packs
₱150.00
TOTAL:
P1,629.00
Table 4: Expenses
Sales
Weekly
Products
Quantity
Price
Sales
Monday
DIY - Chocolate
2
P249.00
P498.00
Classic Chocolate
2
P299.00
P598.00
DIY - Mocha
1
P249.00
P249.00
Red Velvet
3
P299.00
P897.00
Cookie
2
P299.00
P598.00
Cheesecake
1
P299.00
P299.00
Chip
TOTAL:
P3,139.00
22
Tuesday
Chocolate Chip
3
P299.00
P897.00
Classic Chocolate
4
P299.00
P1,196.00
Mocha
2
P299.00
P598.00
DIY – Red Velvet
4
P249.00
P996.00
Cookie
2
P299.00
P598.00
DIY - Cheesecake
2
P249.00
P498.00
TOTAL:
Wednesday
P4,783.00
Chocolate Chip
2
P299.00
P598.00
DIY – Classic
Chocolate
Mocha
3
P249.00
P747.00
3
P299.00
P897.00
Red Velvet
4
P299.00
P1,196.00
DIY – Cookie
2
P249.00
P498.00
Cheesecake
3
P299.00
P897.00
TOTAL:
Thursday
P4,833.00
DIY – Chocolate
Chip
Classic Chocolate
4
P249.00
P996.00
3
P299.00
P897.00
DIY – Mocha
3
P249.00
P747.00
DIY – Red Velvet
4
P249.00
P996.00
Cookie
2
P299.00
P598.00
Cheesecake
1
P299.00
P299.00
TOTAL:
Friday
P4,533
Chocolate Chips
3
P299.00
P897.00
Classic Chocolate
4
P299.00
P1,196.00
DIY - Mocha
4
P249.00
P996.00
Red Velvet
2
P299.00
P598.00
Cookie
3
P299.00
P897.00
DIY - Cheesecake
2
P249.00
P498.00
TOTAL:
P5,082.00
Table 5: Sales
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4.3 Fund Distribution/Allocation
Emergency Expenses
Taxes
Salary Expenses
Additional Products
15%
5%
15%
65%
Figure 16: Fund Allocation
4.4 Basic Financial Statement
Caken Company
Income Statement
For the month ended October 31, 2022
Sales
Less: Cost of Goods Sold
Gross Profit
Less: Operating Expenses
Permits and Licenses
Supplies Expense
Utilities Expense
Total Expenses
Net Income
20,000
8,000
12, 000
1,500
1,375
1,700
4,575
7,425
Caken Company
Balance Sheet
October 31, 2022
Debit
Current Assets
Cash
Inventory
Prepaid Supplies
Non-Current Assets
Equipment
Total Assets
Credit
9,425
1,200
1,500
2,500
14,625
Shareholder's Equity
Owner's Equity
Total Shareholder's Equity
14,625
14,625
Figures 17 & 18: Financial Statements
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