Marketing Plan For

Rice Coffee Business

In Partial Fulfillment of The Course Entilted

ADVANCE MARKETING

Submitted by:

Allendana Tapang Garcia

CHAPTER 1

INTRODUCTION
This Marketing Plan sets for the details involved in the proposed launching of a new and
not common variation of coffee that is made from rice, a Rice Coffee.
The Rice Coffee is targeted to deliver a net operating income of P31.000 in one month
for starter from the day it was released to the market. and approximately P372,000 in
one year and if all goes according to plan hopefully, be able to expand to P1 million for
the next 3 years .
Through this Product is Succesful , the Brand will eneble to lauched different Variation
of the product or other related product lines, which can be sold to anywhere in
nationwide, which we have not yet penetrated.
A Rice Coffee will initially be a Rice Based Coffee and it was intended to give Coffee
Lovers a new way to enjoy Coffee with no Caffeine, all natural and No preservatives
added. it can be enjoyed as much as they wanted to.
Rice Coffee is positioned to bring this unique coffee blend in the City. It will provide a
relaxing mood to everyone with the sweet aroma scent of rice and the sweet taste of
rice in a coffee. It will provide a relaxing atmosphere with the curbside stall on the main
street, school, and at the different private and government offices. The operation will be
around 8:00 am to 5:00pm everyday 5days a week.and it will be sold at P10.00 per cup.
There will be music to set up the mood and to get the attention of the possible buyers.
There are one people on the booth/stall. He/She will be in white polo shirt, black pants,
white sneakers shoes with the apron and hair net. He/She will served everyone
courteously. The area will be always clean for the consumer and will implement CAYGO
(clean as you go) in all the employee/s.

CHAPTER II

GENERAL BUSINESS CONDITION

The Philippine Economy as a whole is currently undergoing Recession all over the
world. The financial Condition should not be set aside before putting up a business.
There is a Global Crisis for Coffee today. Vietnam and Thailand the number one
producer of Coffee in the world is having a hard time giving the most number of supplied
in the world market because many Coffee farmer shifted to other crops, particularly to
high value crops like banana and pineapple. To escape that crisis , this proposed
product will be a great alternative for coffee. It tasted and smell like a real coffee.
Political Condition appear to be stable because of the new Administration. The most
important socio cultural trends appear to be the tendency of consumer to patronized
‘instant product/s’ – instant coffee, instant noodles,
The relevance of these Business condition to this product seems to be as follow:
1. Due to Recession and Money condition, this product will be sold at lowest price
rather than the usual coffee brand. This is one way of letting the consumer know
that they can still enjoyed coffee in a much affordable and healthy way.
2. Due to Global Crisis of Coffee, this propose product seems to be the most
efficient to be the Alternative of Coffee.
3. Nowadays, Many people are so Health Conscious especially those people
belongs to class A and B as well with the C. This product is purely all natural,with
no caffeine and preservatives added.
4. Political Conditions tends to be helpful in our product because of honesty in
leadership , small business like this will no longer be threatened to inhibit the
distribution efforts to any side of this city.
5. The Trends we tend to adopt regarding ‘instant product’ will be a big plus for the
this product, which we wish to extent to the fullest possible to promote this not
common/new product.

CHAPTER III

OPPORTUNITIES AND STRENGHT

The time is right for opening a new brand of coffee in the city. Other coffee brand are
having a great deal of success, which is evidenced by every day of the week. The City
we lived in has no such product so there is no closest competition of the proposed
product. This past few years many of us especially people of the late 30’s are trying be
more concern about their health. coffee lover of that age will be beneficial of the product
because they can enjoyed drinking coffee without worrying about their health. Another
opportunities that we grab is that there is a local riot of coffee in a global context based
on Association of Coffee Producing Countries (ACPC) as with the Philippines, the
coffee capital of the Philippines which is Cavite and Batangas are having a hard time to
cope up with the crisis. Presently, the country is sourcing half of the coffee requirements
from Vietnam and Thailand that is why there is really a need for farmers to try coffee
farming. Regarding to this matter I proposed that the rice coffee will produced to market
around metro manila and other provinces.
An additional strength which this business will possess is the ability to change with the
times. Rather than limiting the future opportunities. If we heartedly and luckily accepted
by the target market, we are planning to launch or to another product / variant and
hopefully a houses just like other coffee houses.

CRITICAL RISKS AND PROBLEMS:

There are risks inherent with any business. However, the Coffee business carries with it
very unique risks. Most critical is the customers' changing taste. Another is the
economy. When the economy takes a down turn, people change their spending
priorities.
A problem also in this business is finding dependable help with the manufacturer of the
main product which is rice. There is a possible shortage of rice again Worldwide
because of different circumstances and rampant changed in the climate.
Another problems lies in this kind of business or product is the consumer itself because
the Rice coffee is different and not so familiar product, consumer will think twice before
buying the product. All these problem will take as a challenge of a good management
because a good management must learn to deal with these problems in a manner
which benefits the business as well as the consumers.

CHAPTER III

COMPETETIVE CONDITION
A few may know about the Rice Coffee but others have not yet been introduced to this
type of product .The Benz 5 IN 1 Coffee powder mix was the first ever Rice Coffee at
the market it was released at the market last 2005 . it was blended and refined by the
Lady name Elinita Marquez of Nueva Ecija. It was home- made and It was first
distributed among the Neighbor provinces, it was a coffee powder in a foil pack and it
was sold at 65 pesos 6pieces in a box. So, it will cost more than P10.00 per cup.

Rice Coffee can also be found at Mindanao. The Cressing Rice coffee are only
available in Mindanao . they offered rice coffee mix just like BENZ 5 in 1 Rice Coffee
mix but it was packed by a small jar with 250 grams and 500 grams. It has two different
Variations Rice coffee in a plain and Rice Coffee with Malunggay. there are two
Different Variants available.
The Rice Coffee That we wish to Introduced is still have a lot of Potential to be
patronized by the people in the City. Because The 2 current competitors are only
available to different provinces only they have not yet penetrated the City Market /
Nationwide. This Product aims to give something that gives good health to the body.  
Since rice coffee is natural, contains no preservative or caffeine, the coffee lover will
surely enjoy this without worrying how much caffeine will it cost them.

PAST 5 YEARS DEMAND:

The interest by consumers in the coffee industry is sweeping the country. Rice coffee is
positioned to sustain the demands for coffee in the Philippines nationwide.
This Table will show the Estimated Past 5 years of Demand of a Coffee in The
Philippines Based on Nestle Philippines 2010.

2005 2006 2007 2008 2009

65,000 Metric 65,,OO0 65,000 65,000 65,000

Tons Metric tons Metric tons Metric tons Metric tons

These details from Nestle Philippines Inc.: Estimated annual domestic coffee
consumption was pegged at 65,000 MT, while production is only 30,000 MT. Local
production of domestic coffee is still way below of the demand. The 35,000 MT imported
annually just to fill in the gap is valued at P3.5 Billion.

PROJECTED FIVE YEARS

2011 2012 2013 2014 2015

 67,000 MT 69,000 MT 71,000 MT 73,000 MT 75,000 MT

Philippine demand for coffee is growing at two percent annually and the volume is
expected to rise to 75,000 MT by 2015.Presently, the coffee production in the country is
concentrated in Mindanao. Their estimated volume of production last year was 17,600
MT. Luzon coffee production for the same period was 8,975 MT, while the Visayas
contributed 2,000 MT.

SUPPLIERS AND MATERIALS:

The Main Ingredient/s of this proposed product is the Rice. Rice has been a staple
food, but nobody knew what a true superfood it was until a recent technology unlocked
its full nutritional potential. The r aw material is not hard to find.  Also, the product is
non-perishable. The Materials needed for the Production of Rice Coffee will come from
the trusted Suppliers.

CHAPTER IV

MARKET RESEARCH RESULT

We Conducted Survey among The Employee/s and Students of Dr. Juan G. Nolasco
High School. As the result of the Conducted Survey The people of Class C and D are
very much likely to purchased Rice Coffee. And majority of working people initially want
to have a zip of coffee almost every minute and they are the salary class who is
capable to pay more and try a new product comparing to students. The half of the
student specially in the lower year said that they are not capable to purchased the
product because of the small allowance that they have except occasionally if they have
extra money to buy for the product. Second, the Rice Coffee would be preferred over
the brands currently available. Since the most number of student are willing to try rice
coffee for a change and for the health issue this product will surely be patronized.

CHAPTER V

SALES AND DISTRIBUTION PLAN

Production and Distribution:

First, the product will be distributed in Different private and government offices, School.
With the curbside stall by one peron in the stall/booth. The coffee will be made/blend by
the coffee blender/maker. It is going to be served with the styrofor cup with a lid.
We will put a curbside stall beside the school, offices; inside the canteen of different
agencies then put up Banner and health facts about our product on each side of the
cart. These concrete facts will reinforce them about our dedication to serve healthy
food. It also provides these customers with more knowledge so that these potential
advertisers will sound more convincing when they recommend our product to their
friends.
Cleanliness is required above all else. The servers will keep all of their work areas clean
at all times. Spills must be cleaned immediately. The area will be maintained in a clean
and sanitary manner. All side of the stall will routinely be wiped down and swept. The
cashier and assistants will also have side work which must be completed before
leaving. All employees must read and be knowledgeable of health regulations and
follow those rules. Training will be provided. Hands must be washed on a routine basis.
No smoking is allowed in any food preparation area.
The servers will be required to present a clean appearance. A uniform consisting of a
white polo shirt with apron, Black pants. White sneakers and black ankle socks. The
servers must be polite, friendly, and helpful, not only to the customer but to the other
staff as well. At no time will employees be allowed to discriminate by remarks, actions or
jokes.
” Quality & Healthy”. is one major reason that stops people from buying snacks and
drinks in general, is the health concern. So if we can set up an image of not only tasty
but also healthy Rice Coffee, we will set our product apart from the crowd. We are
under budget constraint ,we consider putting up the first rice coffee stall near the
popular spot then hopefully branch out.

ESTIMATED MARKET SHARE AND SALES :

Based on the customer profile for Rice Coffee the following numbers were compiled.
The report used was gathered using information obtained through the Facts Report of
our survey in Dr. Juan G. Nolasco High School in Tondo, Manila. The report was
prepared using Rice Coffee as their Coffe Alternative.. For purposes of determining
market share for Rice Coffee . Statistics show that most Employee/s and Students of
Dr. Juan G. Nolasco High School. Prepared Drinking Coffee rather than drinking soda in
their Snack time.and they do not travel more than three miles just to take their coffee
break/lunch break. In this the Stall we wish to establish along the vicinity of the School
together with the Rice Coffee will be very beneficial to the said School and To all the
Employee/s and Students who loves to Drink Coffee.
The Estimated Total Population of Employee/s and Students of Dr. Juan G. Nolasco
High School are more than 4,000. Only 20% of these people are aware of this product,
but they have not been tested/tasted it. The rest are not familiar that this kind of product
are existing. The total number of coffee being served by the vendor coffee machine in
this school is only 60 in a day and The total number of people /consumer who drinks
coffee in a regular basis is more than 100 persons. So, if the rice coffee will able to
operate at the said School we can supply the 3/4 demand of the company needs of
coffee.

CHAPTER VII

ADVERTISING AND SALES PROMOTION

Our strategy is based on our initial budget of P 1,000. The advertising and promotion
will take a number of avenues. First, flyers will be distributed in the neighborhood Ads
will be taken out in all of the School, bulletin .. These ads will offer 10% off, if the
student/s will bring the bulletin with them. The advertising is from the day it was
released to market or from the day of the activation until the 2 nd week. 2nd, We will set
up a Tarpaulin with our brand name and will put slogan that will caught the attention of
the possible buyer. And Considering the fact that we do not have large capital in the
beginning, we should rely on customers to advertise on behalf of us through word of
mouths. We wish to provide an ambiance that is young and modern. This design will
encourage those who don’t want to buy our product initially but to come in with their
friends who want to buy it. We will spend P 400,00 pesos for sales promotion. 300 for
the tarpaulin/ banners and 100 for the printing of flyers. The posting from school bulletin
is free, if you rented some space from there school canteen.

CHAPTER VIII

BUDGET SUMMARY
 This Section present the Summary of the Sales Budget, Advertising ,and sales
promotion of this proposed product. The details for each budget item is presented

The Summary of our Marketing budget in the First year is as follows.

1.Sales Budget
Salaries P 29,760
Transportation 7,440
Merchendise Return 2.000
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Sub-total -- P 39,200

2. Advertising Budget
Flyers (Print) -- P 100,00

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3. Sales and Promotion

Tarpaulin/Banner -- P 300,00
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4. Product Publicity
Recipe Ingredients -- P 74,400

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TOTAL MARKETING BUDGET -- P 114,000 (12months)

PROFITABILITY :

# of Unit Sold -- 100 cups (per day) x 31 (1month) x 12 (1year) = P 37,200

x Selling Price ---------------------------------------------------------- x 10
 -----------------------------
= SALE --------------------------------------------------------------- P 372,000

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TOTAL SALES (12months) ------- P 372,000

- TOTAL EXPENSES (12months) --- P 114,000
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= NET INCOME IN PROFITABILITY P 258,000