TABLE OF CONTENTS

1. EXECUTIVE SUMMARY

1.1 Name of the Company and Logo

1.2 Brief Profile of the Entrepreneurs
1.3 Objectives
1.4 Size of the Business
1.5 Location
2. BUSINESS DESCRIPTION

2.1 Positioning, Value Proposition

2.2 Features

2.3 Product Design

3. MARKET ANALYSIS AND TARGET MARKET
3.1 Segmentation
3.2 Sales and Marketing Strategy
3.3 Competitive Products
➢ Red Ocean Strategy
4. MARKETING PLAN
4.1 Product
4.2 Place
4.3 Price
4.4 Promotion
4.5 People
4.6 Packaging
4.7 Processing
5. BUSINESS DEVELOPMENT STRATEGY (SWOT ANALYSIS)
6. OPERATIONAL PLAN
6.1 Methods
6.2 Manpower
6.3 Machine

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 6.4 Materials
7. MANAGEMENT PLAN
7.1 Ownership Structure
7.2 Organizational Chart (Product Team Roles and Responsibilities)
8. FINANCIAL PLAN
8.1 The Base for the Raw Materials Computation
8.2 Packaging Computation
8.3 Variable Cost
8.4 Fixed Cost
8.5 %Mark-Up Based on Variable Cost
8.6 %Mark-Up Based on Selling Price
8.7 Breakeven Analysis

MARKET RESEARCH REFERENCES

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 BUSINESS PLAN

1. EXECUTIVE SUMMARY

A business plan for Cacao de Lokal, a Filipino start-up with a company name
TSOKOA “Ang Tablea ng Bayan” that aspires to become a high-end chocolate brand. Cacao
de Lokal came from the inspiration of promoting local cacao farmers of Davao City. To do
so, the firm will provide its clients with high-quality, delectable chocolate manufactured with
100% Philippine cocoa and recipes. TSOKOA will provide 3 different dark chocolate
percentage varieties for Cacao de Lokal, there would be 65%, 70%, and 80% dark chocolate.
The company's mission, business objectives, and business strategy are all described in this
business plan.

1.1 Name of the Company and Logo

TSOKOA “Ang Tablea ng Bayan”, a name inspired by two words combined to each
other that are related to chocolates. “Tsokolate”, which is the Filipino term of the word
chocolate, and “cocoa”, a chocolate powder made from roasted and ground cacao seeds.

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TSOKOA company envisions to produce tablea for everybody. Tablea is a Spanish word that
means “tablets” in English that were made from dried local cocoa beans which are roasted for
a few hours before being ground to a rich, chocolate paste (Centeno-Calixto, 2018). In
producing tableas, the company will get the raw ingredients from the local farmers of Davao
City, specifically the dried/roasted cacao beans that are ready to be ground since the company
is also located in the same city.

TSOKOA company’s address: Purok 2B Malagos Baguio District, Davao City

Contact information:
Cellphone number: 0930 450 6934
Telephone number: 227-6332
Email: tsokaocompanyinc@gmail.com
Website: TSOKOA_AngTableaNgBayan.com
Facebook/Messenger/Instagram/Tiktok: TSOKOA: Ang Tablea ng Bayan

(Company Location Exact Map)

1.2 Brief Profile of the Entrepreneurs

The business is proposed by the Grade 11 - Hishi students from Philippine Nikkei Jin
Kai School of Calinan Incorporated, namely Shaina Maeh Masupat, Shaina Mae Balbuena,
Princess Joy Orcajada, Jhoy Annie Ashley Pepito, Yurhea Jhara Quindao, Yuki Uchida, Earl
Sumampong, and Heldrian Sentillas. All people included in this business plan were coming

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from Davao City. They started this business to help and promote local cacao farmers of
Davao City and to acknowledge the chocolate demands in the market.

1.3 Objectives

● To help and promote local communities that produce cacao seeds.

● To build and run tablea-derived products.
● To offer the friendliest service with affordable prices of chocolates.
● To promote our nation's never-ending quest for excellence in the field of cacao
farming and chocolate making.
● To increase satisfaction and to develop our business nationwide.

1.4 Size of the Business

The business chosen legal form is incorporation since the company consists of a
group of people that work together to stand up as a TSOKOA company and make a chocolate
product called Cacao de Lokal. Incorporation will be the most suitable legal form since there
are 8 people in the group that could manage the work equally. They will find a specific group
of cacao farmers around Malagos, Davao City and make it as their dried cacaos supplier for
the business. As they bought the cacaos from the farmers they will ground this into a
chocolate paste using a premiere chocolate refiner’s robust motor and mold it into classic
circle shapes and some seasonal shape molders. They will do the process by themselves
without hiring any employees since TSOKOA is still a start-up company yet a small business
at the same time. Packaging will be processed by the company members. Through this legal
form, it will be convenient to the shareholders of the company since they will process the
various sectors of the business together. However, there is a big chance of misunderstandings
and misleadings to the business if the members won’t be able to manage the group equally
which will be risky for the business consistency and development. If the members would be
able to avoid misleading situations, they would be able to prosper in the future and the
company can improve and get bigger as time goes by.

1.5 Location

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 The product will be sold online through famous online shops such as Lazada and
Shoppee because online stores are much more accessible and convenient, especially in the
pandemic situation nowadays. This is found to be a silver lining to reach the product's target
market through social media conveniently. Also, because the young and young adults are
more interested in buying online nowadays, to the extent it became a trend, utilizing online
selling will expand our coverage, and eventually, it would be easier to attract the target
market of the product. Also, due to the situation, selling and distributing the product to local
stores is still unwise and not recommendable. The inaccessibility of the product's target
audience to the distributing stores can significantly impact the products' sales, so selling and
advertising the product through online stores would be the best option as of now.

2. BUSINESS DESCRIPTION

TSOKOA’s Cacao de Lokal will be categorized under the chocolate section of

the confectionery industry. The industry’s nature focuses on the sweet delicacies and
according to Philippines Confectionery Market Analysis, the Sugar Confectionery category
has been registering a steady growth of 2.24% in CAGR since 2010, which is expected to
continue over the forecast period and the Chocolate category accounted for the largest market
share while registering an average CAGR of 1.63% since 2010.

Cacao de Lokal will fit the industry by supplying the chocolate demands of Filipino
citizens. It will fit in the industry through its purpose and unique features (2.2 features).
Cacao de Lokal will highlight that the business is for a cause, as the consumers purchase the
products, they are not just helping the company’s income but also the local farmers of Davao
City since it is where the raw ingredients of Cacao de Lokal came from. As the business
expands and develops, the local farmers will continue to get benefits from the company such
as loyalty, continuous production, and recognition throughout the country, or even worldwide
if the business will reach the export industry.

2.1 Positioning, Value Proposition

Snacks, pastries, and any food-related products nowadays are very popular on the
market since the pandemic started. There are a lot of people who sell brownies, cookies, and

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cakes through online selling. However, there are people who struggle to find the best
chocolate ingredient for their recipe. Through Cacao de Lokal’s 3 different percentages of
dark chocolates which are 65%, 70%, and 80%, the TSOKOA company will serve the best
and most suitable chocolate ingredients for those pastry recipes. Cacao de Lokal’s 80%,
which are the bittersweet type of chocolates are very ideal for brownies, cookies, and cakes
because the bitterness of the chocolate will help balance the taste once the sugar and other
ingredients will be added (Shivesh, 2020). Chocolates that have 65% cacao level and above
are the healthiest types of dark chocolates (Kolger, 2016). Since Cacao de Lokal has those
dark chocolate percentage varieties, it is not only great for baking ingredients but also for the
health. Instead of worrying about diabetes, the benefits of cacao that an individual can get in
Cacao de Lokal are flavonoids and potassium, which can help in reducing the risk of
diabetes, blood pressure, inflammatory diseases, and cardiovascular diseases (WebMD
Editorial Contributors, 2020). Other than health benefits, Cacao de Lokal is also great for
waking up yourselves from fatigue since it is rich in magnesium that can help the body to
optimize oxygen, burn calories, and increase energy levels (Boost Your Energy Levels with
Superfood Cacao, 2018). Lastly, Cacao de Lokal will satisfy your chocolate cravings with the
unique hit of cacao depending on what dark chocolate percentage you are into.

2.2 Features

● Locally made hard ground tablea

● Organic and authentic
● Has a lot of varieties (65%, 70%, & 80% Dark Chocolates)
● Nutritious and beneficial for one’s health
● Affordable

2.3 Product Design

Cacao de Lokal’s Original Classic Edition

The Cacao de Lokal’s Original Classic Edition highlights the classic circle
shapes of the tableas. Every piece of tablea has an exact diameter of 5cm, 0.5cm height, and
weighs 10grams each. In every pack, there would be 25 pieces of tablea that have an
equivalent weight of 250grams. Each dark chocolate variation has a color strip indicator to
recognize it easily, lighter brown for 65%, light brown for 70%, and dark brown for 80%.

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Cacao de Lokal’s Special Occasion Limited Edition
The Cacao de Lokal’s Special Occasion Limited Edition highlights the unique
designs and shapes which suit the particular occasion that people annually celebrate.
Since it is a limited edition, it will only be available on the same timeline of the
particular occasion. It will have the same great taste as the classic edition and the
same height and grams however, the diameter would depend on what design it is
focusing on. It will still have a color strip indicator for every dark chocolate variation.
Each pack will still have 250 grams.

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 3. MARKET ANALYSIS AND TARGET MARKET

MARKET ANALYSIS

TSOKOA’s Cacao de Lokal will be anticipating the confectionery industry in the

Philippines since it is categorized in the chocolate products section. According to a new
research, the largest category when it comes to market share is the Chocolate category with
an average CAGR of 1.63% since 2010 (Ltd, n.d.). The category would be the most suitable
and beneficial to the company.

The product will be available to all people nationwide through online selling
platforms, especially through the famous online shopping apps Shopee and Lazada.
TSOKOA Corporation has a long-term plan which is to distribute the chocolate products in
various locations around the Philippines through online selling, which they intend to promote
and publicize the company. Through online selling, people of any gender with a starting age
of 16 to 34 years old will be one of the target customers of the product since they are more
likely to shop online every day out of all the age groups (Benedict L, 2021). Online Selling is
also the most convenient and suitable platform today because of the ongoing pandemic

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situation. The product will be promoted to people who want chocolates as an ingredient for
foods, beverages, and for those who crave dark chocolates. They also aim to advertise the
product on special occasions like Valentine's day and the Christmas season. The product will
focus on psychographic, demographic, and behavioral segmentation in choosing the target
market of the product.

TARGET MARKET

The target market of TSOKOA Company is anyone who craves bitter-sweets. To be

specific, they are kids, teenagers, and adults that crave dark chocolates and for people who
use dark chocolates as an ingredient to their recipes. It is not new in the market, but this one
will give certain feelings and satisfaction that can only be experienced in this product.

The study determined that the target market which are kids, teenagers, and adults are
consuming tablea. The certain taste of the product is what makes the customers crave it. To
make the product profitable, it will be promoted through TSOKOA’s social media accounts
with the use of digital posters and ads. Moreover, TSOKOA Company also considers the
affordability of the price of the product so that everyone can afford it. The worldwide
consumption of chocolate every year is estimated to be at least 7.2 million metric tons
(Gaille, 2017). To be specific, the Philippines alone consumes 50,000 MT annually or
50,000,000 kg of chocolates every year. Around 80% of adults consume chocolate every
year, 91% of women eat chocolates than men who consume 87% of chocolate (Gaille, 2017).
And for children, among kids aged under two years old, 54% thought of chocolate as a treat
and ate it. Around 90% of children 6-11 years old eat chocolate depending on their age
groups and parents’ consumption correlation. When it comes to adults, most of the 25-34 year
olds eat chocolate every day (Portion Control, Sustainability and Daily Fixes: 10 Charts
Explaining UK Attitudes to Confectionery, n.d.). So it’s perhaps unsurprising that those age
groups of people are the most interested in the concept of lower-sugar chocolate. When it
comes to occasions, during Valentine’s Day, nearly $400 million of chocolate is purchased
around the world, accounting for 5% of the industry’s total sales (Gaille, 2017). In the
Philippines, Filipinos searching for chocolates around February and October during the
pandemic increased to 122% as of October 2020 compared to October 2019 (Malasig, 2021).

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 The primary target market of the Cacao de Lokal products are the kids and teenagers
who treat chocolates as treats, young adults ages 25-34 years old who love consuming
chocolates, and those people who use chocolates as an ingredient to their recipes.

The secondary target market of the Cacao de Lokal products are those people who
buy chocolates as gifts for someone on every special occasion annually like Valentine’s Day,
Halloween, and the holiday season.

3.1 Segmentation

TSOKOA determined the target market through psychographic, demographic, and

behavioral segmentation. Through psychographic and demographic segmentation, TSOKOA
is able to determine that people ages 25-36 years old are more likely to consume chocolates
as one of their food habits every day. Young ones or teens/kids ages 17 and lower are also one
of the top consumers of chocolates and they are more likely to consume chocolates as treats
and for sweet cravings since they are more likely to have a sweet tooth. People who have
food businesses that need chocolates as part of their recipes are more likely to buy chocolates,
specifically dark chocolates since it is very suitable for pastries. Among the genders, women
are most likely to buy and consume chocolates. Through behavioral segmentation, TSOKOA
is able to determine that people are more likely to buy chocolates every special occasion like
Valentine’s Day, Halloween, and the holiday season.

3.2 Sales and Marketing Strategy

TSOKOA’s Cacao de Lokal was founded with the goal of increasing profits in the
confectionery industry chocolate manufacturing sector, and the company will go to any
length to ensure that they will sell the Cacao de Lokal to a wide range of customers,
especially their target market. Customers will buy the product in the famous online shops of
the country, Shopee and Lazada. They will be delivering the products from any in-demand
places through the most convenient shipping couriers. TSOKOA will earn money by simply
supplying the following items: Cacao-derived products from snacks, pastries, delicacies,
sikwate powder, and so on with the 3 varieties of dark chocolates.

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 They completed a thorough market assessment and feasibility studies before deciding
on a platform on where to launch TSOKOA Corporation and the 3 varieties of dark
chocolates (65%, 70%, and 80%) that they would create in order to access the confectionery
industry and their target market.

TSOKOA gathers data to understand and build marketing strategies in order to reach
its aim of capturing a larger share of the market in Davao, Cebu, Manila, and all parts of the
Philippines.

To summarize, TSOKOA Corporation will sell the Cacao de Lokal using the
following sales and marketing strategies:

❖ The company will send a letter/email to cake producers, manufacturers, residents,

merchants, retailers, and other stakeholders across the country to introduce the
chocolate brand.

❖ Participate in direct marketing and sales activities.

❖ Advertise the products on every social media platform such as Facebook and
Instagram.

❖ High-quality chocolates at an affordable price.

❖ Produce special limited edition chocolate categories during annual occasions.

3.3 Competitive Products

Tablea is one of the most common products in the market. However, what makes the
product unique is that it is a business for a cause, it will benefit the local farmers of Davao
City who produce high-quality cacao around their certain communities. It will be the
TSOKOA’s advocacy to promote and help the local farmers of Davao City by purchasing the
raw ingredients of Cacao de Lokal from them, which is the dried cacao beans. Their cacaos
are very good for the health and it is not just delicious but also smells so good. It is also
affordable for its price yet very palatable.

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 The significant expertise of the management team will serve as a competitive
advantage for TSOKOA Corps since they have individuals on board who are highly
experienced and understand how to create a business to become a national sensation.

Their proximity to some of the greatest cocoa farm/s in Malagos, as well as their
exceptional customer service culture, will all contribute to the company's success.

Company Name Founded In Brand

Portfolio(confectionery
products)

Malagos Chocolate 2012 Malagos Porter, Malagos

Cacao Juice, Dark Chocolate
Bar, Brazil Nut Dragées

Theo & Philo 2010 Artisan Chocolates, Dark

Chocolates with a special
mix, Chocolate Chip
Cookie, Pure Unsweetened
Chocolates

Risa Chocolates 2019 Bars, Pralines, Truffles

Auro Chocolates 2017 Auro X Don Papa: Dark

Chocolate, White Chocolate,
Milk Chocolate

❖ Red Ocean Strategy

The Cacao de Lokal will be undergoing the red ocean strategy since the product is
located in a competitive market. The company will consider any effective strategies that are
applicable for any situation. TSOKOA will make sure that the strategies that will be used are

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unique and will surely help the business to move forward and to be recognized by the
consumers in the confectionery industry. The strategies are:

➢ Highlight TSOKOA’s advocacy which is to help and promote the local

farmers of Davao City by dictating it through Cacao de Lokal’s social
media posts, “as soon as you buy the tableas, you are not only
benefiting the company but also the farmers because it is where the
raw ingredients of Cacao de Lokal came from.”
➢ Cacao de Lokal will have special chocolate categories during annual
occasions like Valentine’s, Halloween, and the holiday season. The
special chocolate category will offer limited edition chocolate shapes
depending on what specific season and that will only be available in
that particular timeline. During those seasons, the shop will offer
discounts and special bundles.
➢ TSOKOA will reach out to some snack shops or any shops that need
dark chocolates for their products by offering them some affordable
and quality-worthy deals.

4. MARKETING PLAN

Identifying the marketing plan will be a great benefit for the company to have a
deeper understanding about the product. It will determine the weaknesses and strengths of the
product that will help in planning the processes and development. Through this
understanding, TSOKOA would be able to specify the purpose and aim of Cacao de Lokal in
the market.

7P’s

4.1 Product
TSOKOA’s Cacao de Lokal is a well-produced tablea that has 3 varieties: 65%, 70%,
and 80% dark chocolate wherein the beans were directly bought and supplied from Davao
City’s local cacao farmers. Each pack will consist of 25 pieces of tableas that are equivalent
to 250 grams. What makes the TSOKOA company different from others is that it aims to
focus and help local farmers to grow and prosper more. It also promotes nationalism to love

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and embrace local products. Cacao de Lokal is also beneficial to the customers’ lifestyle and
health as it is purely organic. It reduces diabetes and other high-risk diseases. In short, the
company focuses more on their advocacy which is helping the local cacao farmers, not just
for the company’s own good but also for everyone.

4.2 Place
The company and where to process the product itself is located in Purok 2B Malagos
Baguio District, however, the product will be sold online through famous online shops such
as Lazada and Shoppee because online stores are much more accessible and convenient,
especially in the pandemic situation nowadays. This is found to be a silver lining to reach the
product's target market through social media conveniently. Also, because the young and
young adults are more interested in buying online nowadays, to the extent it became a trend,
utilizing online selling will expand our coverage, and eventually, it would be easier to attract
the target market of the product. Also, due to the situation, selling and distributing the
product to local stores is still unwise and not recommendable. The inaccessibility of the
product's target audience to the distributing stores can significantly impact the products' sales,
so selling and advertising the product through online stores would be the best option as of
now.

4.3 Price
The business will utilize penetrating and psychological pricing as its pricing strategy.
Penetration strategy will help the product quickly gain market acceptance. It will be seen as
an affordable product despite trying to give the impression that the product is expensive due
to its high-quality taste. Using psychological pricing will also encourage more customers to
buy the product, affecting their buying behavior due to the tempting limited sales and
promos. Taking into account, every strategy mentioned and accurately computing all the
fixed and variable costs needed for the operation of the business, the product will be priced
depending on what percentage the dark chocolate belongs to. 65% dark chocolate will be
priced as PHP 115, 70% dark chocolate will be priced as PHP 120, and 80% will be priced as
PHP 125. The variable costs include the total cost of the unit per order from the raw
materials, ingredients up to packaging expenses. While the fixed costs are the utilities,
machinery, equipment, and internet provider expenses, This is seen to be the perfect price to
attain the sales income the business envisions.

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 4.4 Promotion
Advertising on social media offers several major benefits to TSOKOA company. It
will boost brand awareness and offers insight into the product and attract target customers.
Social media platforms like Facebook, Instagram, and Tiktok are household names among
other social media platforms and it is part of a consumer’s daily life already. Consumers
spend a lot of time on these platforms so TSOKOA company will use these platforms to
promote Cacao De Lokal to the Filipino citizens. The company will provide digital posters
and ads to be disseminated in the different social media platforms to make a social exposure
and publicity of the said product. In these ways, TSOKOA will be able to reach the target
market and promote Cacao de Lokal effectively.

4.5 People
Since TSOKOA is still a start-up company conducting a small business at the same
time, the members of the company will not hire any personnel at the moment since all of
them are able to manage the business properly. The company has 8 members and has decided
positions for the members already. They will work together on planning, processing, and
completing the products. The cacaos are bought from selected local cacao farmers around
Davao City and as soon as the company receives the dried beans, they will be the one to
grind, mold, pack, and deliver the Cacao de Lokal manually to the customers.

4.6 Packaging
The product packaging of TSOKOA ensures that the products would stay safe
throughout its transits. The packaging of the tablea will be vacuum-sealed in a plastic to
prolong its life and avoid melting, then put it in a hard carton box with a minimalist design at
the front, then wrap it in bubble wrap to secure the product from damage and to maintain its
original image along the delivery. In this way, they will reach safely to the customers.

Cacao De Lokal not only represents the product name but also attracts the eye and
looks different from its competitors. To simply put it, the selling point is as it delivers a sense
of quality it also reflects the brand image wherein the local cacao farmers are the significance
of the product’s name Cacao de Lokal. TSOKOA company packaging also features customer
service information like contact details for feedback and inquiries. Branding elements like
logos, tag lines, and product characters are also consistent over the packaging, especially the

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dark chocolate percentage. The packaging ensures aesthetics, uniqueness, and protection to
the said product. It positively impacts the brand and the company.

4.7 Processing
TSOKOA bought the ready-to-grind dried cacao beans from selected local cacao
farmers around Malagos, Davao City. The farmers harvested it at the perfect time, fermented
it for 6-11 days at the right temperature, and dried it for 5-7 days. After the process, the
company will pick up the dried beans and roast it for 1hr before pre-grinding it. During the
pre-grinding, they will crush the nibs manually into small pieces first before putting it into the
machine grinder. As they crush the nibs into small particles, they will now grind them with a
premiere chocolate refiner’s robust motor for 24-72 hours since grinding for a long period of
time will help the flavor and aroma to develop much stronger (How to Grind Cacao Beans |
Craft Chocolate Making, 2021). To adjust the strength of flavor to the exact percentage they
will follow exact recipes. To achieve 65% dark chocolate, the recipe is 60% cocoa nibs, 35%
sugar, and 5 % cocoa butter. For 70% dark chocolate, the recipe is 70 % cocoa nibs, 25 %
sugar, and 5 % cocoa butter. Lastly, for 80% dark chocolate, the recipe is 75% cocoa nibs,
20% sugar, and 5% cocoa butter (Alchemist, 2018). They will not add any preservatives to
maintain their authentic dark chocolate taste. Through this process, it will make the product
high quality, organic, and nutritious at the same time.

5. BUSINESS DEVELOPMENT STRATEGY (SWOT ANALYSIS)

SWOT analysis is a framework for identifying and analyzing an organization's

strengths, weaknesses, opportunities, and threats. The primary goal of SWOT analysis is to
aid organizations in increasing awareness of the factors in making a business decision.
SWOT accomplishes this by analyzing the internal and external factors that can impact the
viability of a decision.

TSOKOA’s Cacao de Lokal will benefit from the huge knowledge of their
management team; they have individuals on board who are highly experienced and
understand how to expand a firm. In addition, their proximity to multiple cocoa fields,
extensive national distribution network, and, of course, the company's great customer service
culture will undoubtedly be a major asset to the firm. Knowing that Davao region is
responsible for about 80 percent of the country’s cacao production and it boasts more than

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20,000 hectares of cacao farms with the largest area of 6,060 hectares located in Davao City,
it would be the company's asset to compete in the forefront of the international market as it
continues to produce the finest cocoa beans.

A major weakness that may count against the company is that they are a new
chocolate factory and lack of financial capacity to engage in the kind of publicity that they
intend to give the business, especially when big names like Malagos Chocolate, Auro
Chocolate, Theo & Philo, Risa Chocolates, and others are already determining the market's
direction. Shortage of the production caused by fortuitous events is also considered as the
company's weakness.

The market opportunities for tablea and cocoa products is currently growing, as there
is an increasing number of cafes and restaurants offering chocolate delicacies and drinks.
Moreover, the trend towards wellness and a healthy lifestyle is seen as another opportunity
for cocoa, as it is being positioned and marketed as a healthy food given its natural contents
and health benefits. With the growing demands for cacao beans, the TSOKOA sees this as an
opportunity to export and a big hit as well in the highly competitive and diversified world
market. As it has a competitive advantage in high-quality chocolate.

Aside from adverse government regulations and an economic standstill, a big threat
that we may face is the advent of a new chocolate factory or similar product manufacturing
firm in the same place as ours, or who may like to explore our market base. Furthermore,
because they are now in a pandemic disaster, there is a risk that the firm will have a small
quantity of money and a lack of raw materials such as cacao and others.

6. OPERATIONAL PLAN

Operating the business is one of the first steps that TSOKOA will conduct to make
Cacao de Lokal possible and available in the market. To make Cacao de Lokal possible, the
team will specify the 4M of operations which is the Methods, Manpower, Machine, and
Materials along the process to determine the exact procedures in finishing the product.

4Ms of Operations

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 6.1 Methods

Inputs
TSOKOA’s first step is to order dried cacao beans from a selected cacao farmer
around Purok 2B Malagos Baguio District Davao City since it is where the company is
located. The company’s location and supplier are in the same community only so it will be
time-efficient for both the supplier and the manufacturer. As soon as they order a particular
kilo of dried cacao beans, they will pick it up from the supplier by a family car and bring it to
the CEO’s house, which is also the company’s location, and it is where the tablea process
takes place. TSOKOA will have a home-based manufacturing site since they are still a
start-up company that operates a small business at the same time. The company will order the
cacao a month before the harvest season so that the farmers will take their time effectively in
processing the beans from harvesting, fermenting up to drying it.

Process
As soon as TSOKOA receives the dry beans, they will roast the beans manually into a
big traditional skillet. This process is the heating of cacao nibs in a big traditional skillet
without oil and any preservatives before pre-grinding it. When the cacaos are now becoming
dark brown, they will now proceed to pre-grinding where they will remove the outer shells of
cacao and crush them into small cacao nibs manually. They will do it by mortar and pestle.
When the cacao nibs are into smaller sizes already, they will now put it into the premiere
chocolate refiner’s robust motor to grind it thoroughly until the cacao will become a
chocolate paste. The grinding will take its process 12-24hrs or more depending on the type of
chocolate that they are aiming for. Since they are aiming for strong dark chocolate, the
process will take around 24hrs. They can stop the process by midnight and continue it by
daytime. As soon as the paste is done, they will now mold it into classic circle shapes with a
size of 5cm in diameter and 0.5cm in length or thickness. If they will be producing chocolates
around February, TSOKOA will have a special occasion limited edition chocolate heart
shapes for the Valentines’ season. TSOKOA will also have a special occasion limited edition
chocolate Halloween shapes for the Halloween season during October and November. As
well as in the Holidays season, they will have a special occasion limited edition chocolate
Christmas shapes during December. After molding the dark chocolates according to their
specific percentages and edition, they will now pack them. In the packaging section, there
will be different packaging images for different editions (2.3 Product Design). For the classic

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original edition, they will pack 25 tableas that are exactly 250 grams of tablea and
vacuum-sealed them in a plastic to prolong their life and to avoid it from melting. After the
vacuum-sealed process, they will now pack it in the specific dark chocolate percentage boxes.
The process is also the same with the special occasion limited edition chocolates.

Output
After the packaging, they will now sell it through Shopee and Lazada shopping apps
as on hand and ready-to-ship products. The modes of payment are all e-wallets and credit or
debit cards. The company will also accept Cash-on-delivery services if the customer wants to.
The modes of delivery are J&T express and GoGo Xpress. TSOKOA will send pictures to the
customers before shipping them out to make sure that their orders are right and exact. They
will wrap it tightly and properly in a bubble wrap to avoid dents and chocolate damage.

6.2 Manpower
TSOKOA is still a start-up company that operates a small business at the same time.
Since the company is not yet big and expanding, the manpower will be the company
members themselves in terms of processing the raw materials into a product. They won’t hire
employees at the moment since all of them are able to do the tasks and manage the business
by themselves. They will be assisted by their family members and friends too that are very
willing to volunteer. In terms of getting the raw materials, they will have a certain supplier for
that which is the selected cacao farmer that also lives in the same community of the company.

6.3 Machine
The machines needed in the process are the premiere chocolate refiner’s robust motor
for grinding the cacao nibs into a chocolate paste and a vacuum sealer for the packaging of
the products. In shaping the chocolates, TSOKOA will not use machinery in molding the
chocolates but rather a silicon molder for an affordable choice.

6.4 Materials
The raw materials of the Cacao de Lokal were supplied by the selected cacao farmer
that also lives in the same community of the company. The rest of the materials that will be
used during the processing of the products will be bought through city malls and online
shops.

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 7. MANAGEMENT PLAN

7.1 Ownership Structure

The business chosen legal form is incorporation since the company consists of a
group of people that work together to stand up as a TSOKOA company and make a chocolate
product called Cacao de Lokal. Incorporation will be the most suitable legal form since there
are 8 people in the group that could manage the work equally. They will do the business by
themselves without hiring any employees at the moment since TSOKOA is still a start-up
company that operates a small business at the same time. Through this legal form, it will be
convenient to the shareholders of the company since they will process the various sectors of
the business together. However, there is a big chance of misunderstandings and misleadings
to the business if the members won’t be able to manage the group equally which will be risky
for the business consistency and development. If the members would be able to avoid
misleading situations, they would be able to prosper in the future and the company can
improve and get bigger as time goes by.

7.2 Organizational Chart (Product Team Roles and Responsibilities)

21
 Ms.Shaina Masupat, which is the C.E.O of the TSOKOA company, will be the one to
manage and lead the business, the one to guide the other members, and will be the one to be
assigned in the chocolate processing section where they will process the dried cocoa nibs into
a chocolate paste along with the Operation Manager, Mr. Earl Sumampong. Mr. Earl
Sumampong, as the Operation Manager, will be the one to process the important documents
of the company, to improve the status of the business, and to assist the C.E.O with the current
status of the company. Ms. Shaina Balbuena, who is the Resource Manager, will be the one to
gather all the necessary resources of the company like which supplier should the company get
their cacao, the machines that will be used, all of the equipment and tools, and packaging
supplier. They will also be the ones to list and observe the number of orders and packaging so
that there won’t be any lacking orders and materials. During the production process, they will
be assigned to the chocolate molding section before proceeding it to the packaging section.
Ms.Shaina Balbuena will work on it with her team, Ms.Ashley Pepito and Ms.Yuki Uchida.
Ms.Princess Orcajada, who is the Finance Manager, will be the one to handle the financial
computations, orders of the customers, and especially the one who will manage the budget
plan of the company with her assistants Mr.Heldrian Sentillas and Ms.Jhara Quindao. They
will also be the ones to pack the orders and cater the shipping details of the customers since
they will also be the ones to review all of the orders before shipping them out. The members
will work together on the production process, that is why the company won’t need employees
at the moment since they will be able to manage the business all by themselves.

8. FINANCIAL PLAN

8.1 THE BASE FOR THE RAW MATERIALS COMPUTATION:

Kilograms Ingredients Price

1kl Dried Cacao ₱115.00

1kl White Sugar ₱64.00

1kl Butter ₱198.00

65% Dark Chocolate (1kg)

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Ingredients (%) (grams) Price

60% Dried Cacao 600 grams ₱69.00

35% White Sugar 350 grams ₱22.4

5% Butter 50 grams ₱9.9

(for 1kg) TOTAL ₱101.3

Capital per 250g of 65% Dark Chocolate ₱25.33

70% Dark Chocolate (1kg)

Ingredients (%) (grams) Price

70% Dried Cacao 700 grams ₱80.5

25% White Sugar 250 grams ₱16

5% Butter 50 grams ₱9.9

(for 1kg) TOTAL ₱106.4

Capital per 250g of 65% Dark Chocolate ₱26.6

80% Dark Chocolate (1kg)

Ingredients (%) (grams) Price

75% Dried Cacao 750 grams ₱86.25

20% White Sugar 200 grams ₱12.8

5% Butter 50 grams ₱9.9

(for 1kg) TOTAL ₱108.95

Capital per 250g of 65% Dark Chocolate ₱27.24

8.2 PACKAGING COMPUTATION

Overall Packaging Height Width Price

Plastic bag for 15cm 10cm ₱2.28

Vacuum Sealing

Box 20cm 7.5cm (all sides) ₱8.00

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Bubble Wrap 25.4cm 60cm ₱4.50

Packaging designs and shipping fees to all packaging materials ₱15.22

TOTAL ₱30.00

8.3 VARIABLE COST

Dark Chocolate 65% 70% 80%

Percentage

Units per 250g/25 ₱25.33 ₱26.6 ₱27.24

pieces per pack

Packaging ₱30.00 ₱30.00 ₱30.00

TOTAL ₱55.33 ₱56.6 ₱57.25

8.4 FIXED COST

Utilities per month (2,000 × 12) ₱24,00.00

MACHINERY:

Premiere Chocolate Refiner Robust Motor ₱18,500.00

Vacuum Sealer Machine ₱459.00

EQUIPMENT:

● Chocolate Molders

❖ 6 Circles = ₱94.00 × 20 ₱1,880.00

❖ 8 3D Heart Shapes = ₱110.00 × 5 ₱550.00

❖ 6 Christmas Shapes = ₱130.00 × 5 ₱650.00

❖ 6 Halloween Shapes = ₱81.00 × 5 ₱405.00

Rubber Spatula (₱24.00 × 5) ₱120.00

Internet Provider (PLDT) ₱1,800.00

TOTAL ₱48,364

8.5 % MARK-UP BASED ON VARIABLE COST

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 65% Dark Chocolate 70% Dark Chocolate 80% Dark Chocolate

(59.67/55.33) × 100 = (63.4/56.6) × 100 = (67.76/57.24) × 100 =

107.84% 112.01% 118.38%

8.6 % MARK-UP BASED ON SELLING PRICE

65% Dark Chocolate 70% Dark Chocolate 80% Dark Chocolate

(59.67/115) × 100 = (63.4/120) × 100 = (67.76/125) × 100 =

51.89% 52.83% 54.21%

MARK-UP PRICE
(Variable Cost × Mark-Up% = Mark-Up Price)

65% Dark Chocolate 70% Dark Chocolate 80% Dark Chocolate

55.33 × 107.84% = 59.67 56.6 × 112.01% = 63.4 57.24 × 118.38% = 67.76

SELLING PRICE PER PACK (250g)

(Variable Cost + Mark-Up Price = Selling Price

65% Dark Chocolate 70% Dark Chocolate 80% Dark Chocolate

55.33 × 59.67 = 115 56.6 × 63.4 = 120 57.24 × 67.76 = 125

CONTRIBUTION MARGIN
(Selling Price - Variable Cost = Contribution Margin)

65% Dark Chocolate 70% Dark Chocolate 80% Dark Chocolate

115 - 55.33 = 59.67 120 - 56.6 = 63.4 125 - 57.24 = 67.76

8.7 BREAKEVEN ANALYSIS

Fixed Cost ₱48, 364

Dark Chocolate 65% 70% 80%

Percentage

25
 Variable Cost ₱55.33 ₱56.6 ₱57.24

Mark-Up Unit ₱59.67 ₱63.4 ₱67.76

Breakeven in Pesos (48,364) / (48,364) / (48,364) /

(59.67/115) = (63.4/120) = (67.76/125) =
₱93,210.32 ₱91,540.69 ₱89,219.30

Breakeven in Units (48,364) / 59.67= (48,364) / 63.4= (48,364) / 67.76=

811 units 763 units 714 units

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