Jokjoks Internet Cafe

A Feasibility Study In Marketing Management By: Felix T. Acosta Jr. Marketing Aspect Service Marketability The Internet-services side of the business is rapidly being accepted by the local communities. Students love to gather for late-night sessions, nearby seniors are getting a glimpse of what the Internet offers, and local business people enjoy stopping by for a quick bite to eat while checking their emails. Because of this, demand for internet service has grown tremendously. Market Analysis Internet Service nowadays plays an increasing role in bringing education at the utmost. In fact, most universities and colleges use internet for their research and references. No wonder this business is one of the income generating types of commerce. Definitely, competition is very high as well as the demand. It is very evident that there is a rapid growth in the population nowadays. Not to mention, most of these students really make use of the modern technologies like computers as a part of their daily system. However, despite of the emerging internet caf business, there are still some students unaccomodated. Obviously there is shortage in supply of internet service. That is where jokjoks internet caf comes possible. This business will cater to consumers preferences to prices and other services as well as accommodate them giving them good costumer service. Target Market Jokjoks internet cafe intends to cater both to people who want a guided tour of the Internet and to experienced users eager to indulge their passion for computers in a social setting. Furthermore, Jokjoks Internet Cafe will be a magnet for local and traveling professionals who desire to work or check their email messages in a friendly atmosphere. These professionals will either use Jokjoks Internet cafs PCs, or plug their own notebook computers into Internet connections. Jokjoks internet cafe target market covers a wide range of ages: from members of Generation X, who grew up surrounded by computers, to seniors from local retirement centers. Our primary target markets include: Students.

The large student population will become an important part of the Jokjoks internet cafe customer base. The student population continues to grow at most universities. Evening entertainment, access to the Internet, and the upscale ambiance will be attractive to this demographic group. Business people. Downtown business communities are the areas in which Jokjoks internet cafe is located. With further expansion into these parts of new cities, there will be access to additional professional centers. Jokjoks internet cafe provides a perfect setting for business meetings. It also offers traveling business people the opportunity to plug personal laptops into the Jokjoks internet cafe network to check email communications or conduct Internet business with their customers or home office. Seniors This group represents a growing segment of Internet users. Jokjoks internet cafe will target the seniors in nearby retirement centers by offering Introduction to the Internet classes. The Jokjoks internet cafe staff will hold brief classes in the off hours to educate seniors on how to use the Internet to communicate with friends and family. This should build a regular base of customers who wouldnt ordinarily use the services offered by Jokjoks internet cafe. Marketing Strategies There are 3 marketing strategies for Jokjoks Internet Caf Jokjoks Internet Cafe first strategy focuses on attracting novice Internet users. Jokjoks Internet Cafe plans on attracting these customers by: Providing a novice-friendly environment. Jokjoks Internet Cafe will be staffed by knowledgeable employees focused on serving the customers needs. A customer service desk will always be manned. If a customer has any type of question or concern, a Jokjoks Internet Cafe employee will always be available to assist. Jokjoks Internet Cafe will offer introductory classes on the Internet and email. These classes will be designed to help novice users familiarize themselves with these key tools and other computer systems. Jokjoks Internet Cafe second strategy will be focused on attracting power Internet users who will provide an important function at Jokjoks Internet Caf. Jokjoks Internet Cafe plans on attracting this type of customer by providing: The latest in computing technology. Scanning and printing services. Access to powerful software applications. The third strategy focuses on building a social environment for Jokjoks Internet Cafe customers.

A social environment that features entertainment serves to attract customers who wouldnt normally think about using the Internet. Once on location at Jokjoks Internet Cafe, the customers who came to enjoy more standard entertainment offerings will soon realize the potential entertainment value of the Internet. Pricing Structure Internet and Computer Access For casual customers, a price of P15 an hour is charged. For printing Black and White (laser) P5.00/page; Colour P5.00/page; Photo Printing P10.00/print CD/DVD Burning is charged P20.00

Technical Aspect Project Description Jokjoks internet caf is a place where one can use a computer with Internetaccess, most for a fee, usually per hour or minute; it also provides other services like printing, CD/DVD burning and photocopying. It may serve as a regular caf as well, with food and drinks being served. Location Sta. Ana Avenue in Davao City will be the best location for Jokjoks Internet Caf. It is located at the faade building of San Pedro College near the Baptist church. The place has been a center of three schools namely: Holy Cross of Davao College, San Pedro College and the Chinese School. Because of the visibility of the place, this will add convenience for the targeted market encouraging more customers to drop by at Jokjoks Internet Caf. Vicinity Map

Equipment Requirements Hardware needed 1. 20 x Client PCs 2. 1 x PC Server 3. 1 x 24 ports 5. 1 x Printer 6. 1 x Scanner Furniture and Fixtures 1. 20 clients chairs 2. 20 computer tables 4. 1 x Modem

Appliances 1. 2 Air Conditioner 1.5 HP 2. 1 Coffee Heater 3. 1 Mini Refrigerator

Floor Plan

Manpower Requirement

Skilled

These positions require an adept people who will contribute their knowledge for the success of operation of jokjoks internet caf. Below is the list of positions under the skilled category.

1 manager and 2 computer technicians

Semi- Skilled

This category entails people who have the capacity to help in the business operation of the Jokjok internet caf. They must have at least a good educational background in able to fulfill these positions.

1 cashier and 1 security guard

Unskilled

This category involves positions that will support the business activity of Jokjoks Internet caf. It does not require much of educational background as long as they can perform their work.

3 service staffs and 1 janitor

Form of Organization This business will be a sole proprietorship type of business. An individual proprietor who owns and manages the business and is responsible for all business transactions. The owner is also personally responsible for all debts and liabilities incurred by the business. A sole proprietor can own the business for any duration of time and sell it when he or she sees fit. As owner, a sole proprietor can even pass a business down to his or her heirs. In this type of business, there are no specific business taxes paid by the company. The owner pays taxes on income from the business as part of his or her personal income tax payments. Advantages of this type of business are the sole proprietor has complete control and decisionmaking power over the business; sale or transfer can take place at the discretion of the sole proprietor; no corporate tax payments minimal legal costs to forming a sole proprietorship; and few formal business requirements. Organizational Structure

Felix T. Acosta Jr.CEO/ Owner Manager Computer Technician Cashier

Service Staffs Security Personnel\ Security Guard

Qualification and Functions of Manpower

Positions Manager

Qualifications

Functions

Age 25-30 years old, Male/ Female business or marketing-related degree or equivalent professional qualification experience in all aspects of developing and maintaining marketing strategies technical marketing skills proven experience in customer and market research experience with relevant software applications

Monitors, reviews and reports on all marketing activity and results Determines and manage the marketing budget Delivers marketing activity within agreed budget Develops pricing strategy

Cashier

18- 23 years old, Male/Female Must be at least a college level preferably business related courses With experience as a cashier for at least 6 months

Accepts payments, Makes change, Provides information, Fills out forms and Provides receipts for goods and services.

Service Staffs

18-25 years old, Male Must be at least a college level With pleasing personality Computer savvy

Supports the customer needs at all times. Attentive to the requests and complains of customers as well as Helps in maintaining

cleanliness and orderliness of the place.

Computer Technician

23-30 years old, Male/Female College graduate preferably computer related courses Extensive and diversified Information. Technology experienced. In-depth knowledge on troubleshooting. Strong communication and interpersonal skills.

Tests and installs computers hardware systems, Connects PCs in a network and sets up peripheral equipment, hardware components and allied devices., Checks performancerelated issues and network support problems, Responds to complaints and queries, provides technical advice, and solves employees technical problems by phone or in person. He must perform security services for the entire internet caf building.

Security Guard

18-30 years old, Male 1 year experience as a security guard A well disciplined and organized security personnel from military background.

Janitor

18-30 years old, Male Must have personal skills to interact effectively with tenants, staff and the public. Must be able to work independently as well as in a team environment.

Maintain a safe, clean, living environment in the building.

Financial Study

Project Cost Summary A. Capitalizable Expenditure

Equipments (refer to schedule 1) Appliances (refer to schedule 2) Furniture and Fixture (refer to schedule 3)

P890, 000 12,000 43,000

Total Capitalizable Expenditure

P945, 000

B. Direct Expenditure

Pre- operating Expenses

49,000(refer schedule4)

C. Working Capital Monthly Working Capital (refer schedule 7) Total Project Cost : A. Capitalizable Expenditure This section represents the necessary assets for the entire operation of Jokjoks Internet Caf. Listed below are the items and their corresponding projected prices Schedule 1 P 1,064,056 70,056

Equipments Clients PCs PC Server Modem 24 Ports Switch Printer Scanner

Quantity 20 1 1 1 1 1

Unit Price P35,000 35,000 5,000 130,000 10,000 10,000 Total Amount :

Total P 700,000 35,000 5,000 130,000 10,000 10,000 P 890, 000

Schedule 2

Furniture and Fixtures Plastic Chairs Computer Tables

Quantity 20 20

Unit Price P 300 300 Total Amount :

Total P 6,000 6,000 P 12,000

Schedule 3

Appliances Air Conditioner1.5 HP Coffee Heater Mini- Refrigerator

Quantity 2 1 1

Unit Price P 15,000 3,000 10,000 Total Amount :

Total P 30,000 3,000 10,000 P 43,000

Total Capitalizable Expenditure: P945, 000

B. Direct Expenditure Below is the financial allotment for the following pre-operating activities of Jokjoks Internet Caf. Schedule 4 Pre- operating Expenditure

Survey of the locationPreparation of FS Sourcing of Funds Acquisition of Business Permits and Licenses Acquisition of Materials and Equipments

P 3,00010,000 3,000 3,000 5,000 20,000

Renovation of Building Acquisition of Manpower Total :

5,000

P49,000

Schedule 5

Schedule of Depreciation

Assets A. Equipments Clients PCsPC Server 24 Ports Switch

Usefu Qty Unit Price l life

Total

Annual Depreciation

55 5 5

201 1 1 1 1

P35,00035,000 130,000 5,000 10,000 10,000

P700,00035,000 130,000 5,000 10,000 10,000 P890,000

P140,0007,000 26,000 1,000 2,000 2,000 P178,000

Modem 5 Printer 5 Scanner Total B. Furniture and Fixture Plastic ChairsComputer Tables Total C. Appliances Air ConditionerCoffe e HeaterMiniRefrigerator Total 525 211 P15,0003,00010,00 0 P30,0003,00010,00 0 P6,0001,5002,00 0 33 202 0 P300300 P6,0006,000 P2,0002,000

P12,000

P4,000

P43,000

P9,500

Schedule 6

Schedule of Salaries, SSS, PhilHealth and Pag ibig

Position

Monthly Salary SSS

PhilHealth Pag ibig

Total

ManagerComput P9,0004,5003,5 er 00 TechnicianCashi er 3,000 Service Staff Security Personnel Janitor Total P24,500 2,500 2,000

P636318247. P22510010 P10010010 P9,9615,0183,947 3 0 0 .3 212 176.7 141 100 100 100 100 100 100 3412 2,876.7 2,341.3

P1,731

P725

P600

P27,556

Schedule 7

Schedule of Monthly Working Capital

Salaries, SSS, PhilHealth, and Pag ibigLight and Water Telephone

P27, 55615,000 500 5,000

Repairs and Maintenance 10,000 Rental 7,000 Merchandise Inventory 3,000 Supplies 2,000 Miscellaneous Total : 70,056

Schedule 8

Schedule of Monthly Revenue

Internet AccessPrinting CD/ DVD Burning Refreshment

P85,00011,000 20,000 12,600 8,400

Drinks Pastries

Total:

137,000

PROJECTED INCOME STATEMENT

Year 1 Revenue Service Income Less: Operating Expenses Direct Expenditure Depreciation Expenses Net Income before Tax Less: Tax Provision (35%) Net Income after Tax P840, 672 49,000 191,500 562,828 196,990 P365, 838 P1, 644,000

Year 2

Year 3

P1, 808,400

P1, 989,240

P924, 739

P1, 017,213

191,500 692,161 242,256 P449, 905

191,500 780,527 273,184 P507, 343

Note: Revenue and Expenses are increased by 10% every year and thereafter.

PROJECTED CASH FLOW STATEMENT Pro- operating Year 1 Year 2 Year 3

Cash Inflows Capital C. Revenue Total P1, 100,000 P1, 100,000 P1, 644,000 P1, 644,000 P1,808,400 P1, 989,240

P1, 808,400 P1, 989,240

Cash Outflows Capitalizable Expenditure Direct Expenditure Operating Expenses P924, 739 P1, 017,213 Tax Payments 196,990 Profit Sharing P945, 000 49,000 P840, 672

242,256

Total 672

P1, 121,729

P994, 000 P1, 259,469 P106, 000 P729, 771

P840,

Net Cash Flow 328 P686, 671 Add: Cash Bal. Beg. 1,595,999 Cash Bal. End. 328 P1, 595,999 PROJECTED BALANCE SHEET

P803,

106,000

909,328

P106, 000 P2, 325,770

P909,

Assets Year 3 Cash 595,999 Equipment 356,000

Year 1

Year 2

P909, 328 P2, 325,770 712,000

P1,

534,000

Furniture and Fixture 4,000 Appliances 14,500

8,000

33,500

24,000

Total Assets 157,999

P1, 662,828 P2, 696,270

P2,

Owners Capital and Liabilities Tax Payable P273, 184 Capital 1,100,000 Retained Earning 815,743 Add: Net Income 507,343 365,838 365,838 P196, 990 P242, 256

1,100,000

1,100,000

449,905

Total Capital and Liabilities P2, 696,270

P1, 662,828

P2, 157,999