TRIBO
“Eat local; Feel special”
A Business Proposal
In Partial Fulfillment of the Requirement for the Subject
UGE (4078)
Submitted to:
Submitted by:
Desaca,Jelly Mae
Golez, Wendell Gian
Pabillon, Jelina
September 23, 2022
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I.
INTRODUCTION
Homemade Ice Cream business is a good business to earn extra income. A lot
of people crave ice cream when they are having a particular bad day and as comfort
from a hot day. Not only will the ice cream cool you down and taste delicious, but you
will also able to play a fun game with yourself as you race against time to eat your
frozen deliciousness before it drips into a pool of melted sadness. Eating ice cream
makes you happy and it brings you back to your childhood.
Homemade Ice Cream is a business partnership comprises with 5 students in
The University of Mindanao. This idea came up based on the current situation that we
are struggling with because of pandemic. The implementation of lockdowns in some
areas has a huge effect not only on regular individuals but in many business. People
are very innovative in searching different sources of income just to survive this time of
crisis. The reason why we also have this idea of business because it`s easy, making
homemade ice cream is relatively easy. You can make homemade ice cream if you
have ingredients and equipment. We made sure that our homemade ice cream is
different from our competitors. One of the advantages of making homemade ice cream
is, you can make different flavors without artificial ingredients and fake thickeners. Our
business goals is to provide delicious, healthy and affordable homemade ice cream.
While waiting for the time that we can go “back to normal”, we the students of the
University of Mindanao wants to start a business with a low cost that can operate even
in this time of the pandemic.
One of our objectives is to have a business that can last longer, we see
homemade business, could be through hard work and determination. This business
will succeed because ice cream is one of the most popular dessert options globally.
With different flavors you can choose whatever you want, everyone will have
something for them. This, of course, means that you and your homemade ice cream
business will bring in much-needed income.
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Company Slogan
Fruity Funday`s slogan is “Ice cream solves everything”. We look forward to
provide delicious and healthy homemade ice cream to our future customers. Ice cream
is good during every season. Usually people eat ice cream to lighten up their mood.
For us students, every time we are having a hard time in school we eat ice cream as
stress reliever.
Company Logo
Our company logo is just simply referring to what business we have. Our
company name Fruity Funday is based on what we sell, we sell ice cream made of
fruits, and our ice cream can make your boring day into fun. We used a large and
appropriate font style and played with graphic elements putting ice cream in different
cups to emphasize that we offers different ice cream flavors. The presence of ice
cream in the logo is also a clear representation of the product itself. We choosewhite
among many possible colors in the backgrounds because it represents cleanliness
and hygiene. In our business we made sure that our homemade ice cream is delicious
and healthy.
I.
Target Market
Overview of the Market: Demand and Supply
Demand and Supply
Living in a tropical country is like bringing the sun on the top of your head. The
scorching heat of the sun drains up our energy and makes us crave for something cold
and delicious. Good thing, a mouth-watering dessert was invented and called ice
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cream. According to Health Benefit Times, Ice cream is considered as an excellent
source of energy. It also has good amount of fats, carbohydrates and proteins for the
formation of energy. The moderate amounts of ice cream won’t result in weight gain.
In addition, Ice cream is a great source of nutrients and packed with Vitamin C, E, D,
B6 and B12 as well as Vitamin K. The presence of Vitamin K thins the blood and
prevents the chances of blood clotting. It is a great source of niacin, antioxidants,
riboflavin and thiamine. It helps to stimulate an immune system and promotes the
functions of nerves and organs. Choosing Ice Cream as our product is an excellent
idea since most of our markets are students and children who can never resist the
taste of an ice cream. According to a website – Just Food, In the Philippines,
consumption of Ice Cream is higher among females than males. Furthermore, children
age up to 15 accounted for the highest consumption of ice cream in 2018, with 40.9%
of a volume share.
Our target market will have the students of University of Mindanao as majority,
and the rest are among the locals along the vicinity of the store. The number of
students enrolled in the University of Mindanao is estimated to reach 50,000, while
having more than 36,000 of it are in the Matina Campus. According to a website - Just
Food, Ice Cream sales in the Philippines stood at PHP12.8bn. in 2018 – and are
forecast to rise PHP17.1bn by 2023, representing the compound annual growth rate
of 6%.
Market Trends
Most of us likes cold treats in a busy and hot day especially ice cream.
According to a website – Food Navigator-USA, Ice cream and popsicles re by
definition consumed “ice cold” because it’s the cold part that make them so
pleasurable, even though cooling tends to reduce the sensory effect of food and drink
on taste and smell. Unlike other desserts, ice cream provides satisfying feeling. Eating
ice cream also needs no definite container. According to My/Mo Mochi Ice Cream, Ice
cream can be served many different ways. In a cup, in a cone, in a double cone—the
possibilities are endless. You can take your favorite frozen treat with you wherever
you go when it’s wrapped nicely in a cone. Keep one hand free and hold tight to your
double scoop of goodness in the other.
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II.
Competitors
The competitors of Homemade Ice Cream are based in the most-known ice
cream shop and stores in the Davao City. The following are the considered main
competitors of the Homemade Ice Cream:
Name: Mang Danny`s Ice Cream
Competitive Product: Ice Cream Location:
Roxas Avenue, Davao City Target
Markets: Residence of Davao City
Business


Product


Strengths
Mang Danny had no Business
secret apart from
putting passion and
love in making recipe
for 48 years.
He put more attention
to his ice cream and
his customers.
His ice cream are Product
delicious.
He offers variety of
flavors.


Weaknesses
Many competitors
selling ice cream.
in
His customers wait forat
least three hours every
day just to buy his ice
cream.
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Name: Swirls Ice Cream Davao
Competitive Product: Ice cream
Location: SM City Ecoland
Target Markets: Residence Davao City
Business


Product


Strengths
Has over 30 branches of Business
the franchise nationwide.
They
opened
their
business to the public.
They do have plenty of Product
choices available on the
menu.
Their ice cream is
available in three cup
sizes and prices vary
according to the size
selected.


Weaknesses
Many competitors
selling ice cream.
in
Some customers slightly
disappoint when they
received their order (ice
cream) because it was
nothing at all like
pictured on their menu.
Name: Ice Giant
Competitive Product: Halo-halo, Ice cream, Burger, Pizza, Fries, Shake
Location: Quimpo Blvd, Davao City
Target Markets: Residence of Davao City
Business
Product
Strengths
 One of the popular place Business
listed
under
Local
Business in Davao City.
 Amazing and friendly
staff and clean place.
 The food is delicious and Product
desserts are vast.
 They serve faster than
the usual wait time for
snack shop.
Weaknesses
 The place are
small.
 The
seats
uncomfortable.
quite
are
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III.
Marketing Strategies/ Realization of the Proposed Business
Homemade Ice Cream`s customer based in Davao City. Stated below are the
strategies on how to market our product.
Marketing Strategies
1. Product
We made sure that our product is delicious, healthy and affordable.
2. Pricing
The pricing strategy of homemade ice cream for the suggested product
is mark-up strategy. A mark-up of 20% based on the purchased each item.
Hence, this is considered normal to the said industry.
3. Place
Homemade ice cream is strategically located in the front gate of The
University of Mindanao, Matina Campus Main gate. Homemade ice cream will
provide more chairs for customers for them to sit while waiting their orders.
4. Promotion
Nowadays, students from The University of Mindanao spend their leisure
time in social media. Social Media is a big help for promotion for any type of
business. Aside from our physical store, homemade ice cream is also available
online with its target market. We will be taking advantage of social media and
we will use it to reach our target market. Homemade ice cream will be putting
information to each of our social media accounts.
5. People
Homemade Ice cream’s customer base in Davao City is comprised of 4
target groups.
1. Students of the University of Mindanao
2. Staffs and Faculties of The Universities of Mindanao
3. Local Residents of our Location
4. Other Customer (pass buyers)
There groups are the possible strong customers segment. The benefit of
this mix of customers is that it helps maintain consistent business
throughout the year. For example, while classes is on-going, students, staffs
and faculty member’s peaks during 0ctober-May.
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 Students of The University of Mindanao –There are approximately
41,500 students in The University of Mindanao, Matina Campus. Most
of the students used the main gain for entrance and exit where our kiosk
is located. Therefore there are a lot of students passing by.
 Staffs and Faculties of The University of Mindanao- Since there are
41,500 students in the University, they also have a lot of staffs and
faculties. Majority of them uses the Main gain upon entering the
university.
 Local Residents of our Location- The University of Mindanao is
surrounded by a lot of local houses and apartments. Therefore, whether
the classes is ongoing or not, there will be a target market for us.
 Other Customer (pass buyer) - There are a lot of people who enter
The University of Mindanao with different concerns. Therefore, there
willbe potential customer that will pass by our kiosk.
6. Process
7. Physical evidence
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IV.
Location/Production
The Homemade Ice Cream store is located at Door 5, GMC bldg, Matina, Talomo,
Dabaw, Lalawigan ng Davao del Sur. Our store is near University of Mindanao, Matina
Campus and Ateneo de Davao Grade School. Since our store is near of a campus we
have a good advantage. One of the major advantage of our store is easily accessible
both by foot and by car. The area where we located has a lot of foot traffic, especially
school days.
The production is in-housed production since our product is a homemade. The
members are all responsible for the preparation of the product and other concerns of
our business. The production will take place in one of the member’s house that is
located at Gravahan, New Matina, Davao City which is also near in the location of our
Homemade Ice Cream store.
Figure 1. Location of the Homemade Ice Cream and where production will take
place.
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V.
Management
General
Manager
Indog, Nicole
Production
Golez, Wendell
Sales
Manager
Indog Nicole
Finance Manager
Golez, Wendell
Gian T.
Sales
Representative
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Information Position:
General Manager
Desaca, Jelly Mae. will review performance data to measure
productivity or goal achievement and identify areas that may need cost
reduction or program
improvement. She will
also
coordinate
the
development of key performance goals for functions and direct reports.
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Position: Production Manager
Golez, Wendell Gian T. will ensure that manufacturing processes run reliably
and efficiently. Her responsibilities include planning and organizing production
schedules, assessing project and resource requirements, selecting and purchasing
materials, organizing the repair and routine maintenance of production equipment.
Position: Finance Manager
Golez, Wendell Gian T. will produce financial reports, direct investment
activities, and develop strategies and plans for the long-term financial goals of their
organization. He would also provide financial reports and interpreting financial
information to the general manager while recommending further courses of action.
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Position: Sales Representative
Golez, Wendell Gian T. will contact new and existing customers, explain product
features, answer any questions that customers may have. Sometimes he sells
directly to consumers, and some to businesses and other organizations. He
recommends changes in products, service, and policy by evaluating results and
competitive development
Position: Sales Manager
Pabillon, Jelina G. will be designing and implementing a strategic
sales plan that expands company’s customer base and ensure it’s strong
presence.They also be managing recruiting, objectives setting, coaching
and performance monitoring of sales representative
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VI.
Technical Aspect of the Business
The ice cream market is highly competitive. After all, millions of stores
selling this tasty treat. Ice cream is a popular food made varying mixtures of cream,
milk, sweeteners, and optional ingredients for desired flavors. Many benefits that
come with eating ice cream, there is possibility of equal amount of health issues
that could arise from eating too much.
Ice cream production is an important and diverse since ice cream is a dairy
based product which typically contains 6-12% fat, 7.5-11.5% non-fat milk solids
and 13-18% sugars Stabilizers and flavors are also added.
There are many types of Homemade Ice cream equipment available which are
necessary for successful ice cream industry.
1. Whisks
- We use larger whisks for incorporating
ingredients, and keep a bunch of tiny whisks on
hand for various task.
2. Forks
- It is the most-used tool in home Kitchen. It is use
for blending, turning, tasting, and prodding.
2. Ice Cream Scoop
- Is used to serve ice cream.
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3. Ice Cream maker
- It is a machine used to make ice cream. It
prepare the mixture by employing the handcranking method or employing an electric
motor.
4. Sieve
- It is used to strain liquids like boiling water
or to sift dry ingredients. When making ice
cream, you always have to be aware of
mixture.
5. Heat-proof Silicone Spatula
- It is used to stir cream, and to mix jams
and sauces at high temperatures.
6. Ice cream spade spoon
- Is a flat blade digs into frozen ice cream. You
don`t need a teaspoon to eat ice cream.
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7. Ice Cream Container
-After the long process you can put finish
product in the ice cream container. By
storing any ice cream you've just made
in its own container for long-term
8. Ice Cream Dishes
-These molded ice cream dishes are
beautiful and unabashedly old-fashioned.
They will be as pretty empty as they are
holding a scoop of your ice cream.
9. Measuring Spoons and Cups
-measuring spoons and cups is used to
measure an amount of an ingredient, either
liquid or dry.
VII.
Cost of Production and Pricing Strategies
The Homemade Ice Cream`s projected output per day is 150 cups. Therefore,
there will be an output per month of 3,600 cups. Listed below are the variable costs
and input that took place in the production to attain the projected output per month.
Table 1. Variable Costs
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Variable Inputs
Unit
Quantity
Unit Price
Cost per
month
Sweetened Condensed
Can 80 kg
80
35
P 2,800
Water melon
Kg
5
36
P 180
Mango
Kg
5
90
P 450
Apple
Kg
5
25
P 125
Banana
Kg
5
34
P 170
Avocado
Kg
5
15
P 75
Strawberry
Kg
5
180
P 900
Grapes
Kg
5
100
P 500
Vanilla extract
1 bottle
4
140
P 560
Salt
Kg
3
12
P 36
White sugar
Kg
10
63
P 630
Butter milk powder
Kg
15
215
P 3,225
Cream
Pack
25
150
P 3,750
Bar cheese
Bar
15
53
P 795
Calamansi extract
1 bottle
4
135
P 540
Evaporada
Can 80 kg
60
75
P 4,500
Cups
1 pack =
145
55
P 7,975
120
35
P 4,200
Milk
30 cups
Spoon
1 pack= 12
pcs
Light & Water
-kilowatts
P 2,500
-cubic
meters
Transportation
Total Variable Cost per
600
P 600
P 34,511
month
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Table 2. Fixed Costs
Fixed Inputs
Total fixed cost per month
PPE (Schedule 1)
P 238
Rent (location)
P 50,000
Labor
P 20,000
Business permit
P 1,000
Total Fixed Cost
P 71,238
Schedule 1: Property, Plant and Equipment
PPE
Cost
Useful
Depreciation/
life
monthly
P 4,500
5
P 75
Whisks
P 140
1
P 12
Forks
P 200
1
P 17
Ice Cream Scoop
P 350
5
P 14
Sieve
P 280
5
P5
Heat-proof Silicone Spatula
P 360
1
P 30
Ice Cream Spade Spoon
P 380
5
P6
Ice Cream Container
P 500
1
P 42
Measuring spoons and cups
P 700
5
P 12
P 1,500
5
P 25
Ice Cream Maker
Ice Cream Dishes
Total
P 8,910
P 238
Total Cost per month = Total Fixed Costs per month + Total Variable Cost per month
= 71,238 + 34,511
Total Cost per month = 105,749
Average Total Cost = Total Cost/Quantity
= 105,749/3,600
Average Total Cost = P 29.37
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On setting price per cups of homemade ice cream, it was decided to use Mark-up
Based Pricing
ATC = P 29.37
MU = 90%
Selling Price = ATC + ATC (MU)
= 29.37 + 29.37 (0.90)
= 29.37 + 26
Selling Price =P 56
The Homemade Ice Cream will be selling the Homemade Ice cream for 56
pesos. Our profit per cup is 29.37 pesos.
Our projected sales is 150 cups per day. In a day, our target sales is 8,400. In a month,
our target sales is 201,600. And in a year, we should sold ice cream to achieve our
target sales of 2,419,200.
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