A Feasibility Study on Establishment of

Ice Cream and Other Frozen Desserts Business

Brgy. H. Concepcion, along 3100, Pan-Philippine Hwy,

Cabanatuan City, Nueva Ecija

A feasibility study

presented to

Mrs. Marcelina Vasquez

In partial fulfillment of the

requirement for the subject

ENG104: Technical Writing for Business Communication

Submitted by:

Julie Anne Dizon

Alyssa Marie Julio

Nicole Anne Perez

March 2017

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 TABLE OF CONTENTS

Introduction . . . . . . . . 3

Executive Summary . . . . . . 4

Marketing Aspects

i. Marketing Description . . . . 5

ii. Pricing . . . . . . . 5

iii. Promotions . . . . . . 6

iv. Demand Analysis . . . . . 6

v. Supply Analysis . . . . . 7

vi. Competitive Position . . . . 7

vii. Marketing Program . . . . 8

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 DELISH CREAMERY ICE CREAM PARLOR
"You scream, I scream, we all scream for ice cream."

I. INTRODUCTION
On a hot summer day, nothing beats a refreshing scoop of your

favorite ice cream. Ice cream parlor is one stop ice cream shop

where you can find the flavor of your choice in any season. We

provide ice cream by maintaining high standards of quality in a

joyful environment. Here in the parlor we seek to combine

creativity with culinary treats. Our menu is ever changing as we

constantly strive to improve and discover the ultimate sweet

combination. Our variety of custom ice cream flavors, toppings

and options in which to contain said items offer you a unique

opportunity to bring your wildest dessert dreams to life. We

currently offer a myriad of mixtures to conceptualize a

personalized experience through our Ice Cream Puffs and many more

eccentric creations come. It is the business which offers

happiness to consumers by providing the best quality of product

and extra services. In addition, this business is responding to

customers awareness of new type ice-cream. The customers can

order whatever they want or even create their own recipes of ice-

cream by themselves. Moreover, our business has provided theme

services during special occasions; therefore made customers

satisfy with both products and services. All the tiniest details

are given to the choice of the raw materials to warrant the very

high quality of our ice creams. You can meet our ice creams,

which are made every day directly in our workshop.

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EXECUTIVE SUMMARY

This business aims to provide its customers with frozen food

to fight off the daily hot climate of the city, it serves as

another way to enjoy themselves with desserts while unwinding at

a caf-style place of the business where they will be provided

with free Wi-Fi during their stay. Delish Creamery Ice Cream

Parlor will be one of the few ice cream shops in Cabanatuan City.

It shall lease a space inside SM City Cabanatuan rather than

conducting business in just a small stall and will soon have its

own place outside the mall. This business will offer variety of

Ice Cream flavors and other frozen desserts perfect for the hot

climate in Cabanatuan City. It shall be equipped with necessary

appliances, utensils, and other gadgets to conveniently provide

services and sell various products to different consumers.

The primary customers of this business will be the students

and residents, especially children, near the place. Since SM City

Cabanatuan is surrounded with different school and universities,

it will be the perfect place for them to spend their free time

off of school. At least 20% of the target customers are intended

to be captured by the business.

To make our business well-known, we plan to advertise it

using tarpaulins, posters, stickers, and make use of social media

advertisements.

The considered competitors are Yogurtree and Punos Ice

Cream that are near the business location.

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 In order to start Delish Creamery Ice Cream Parlor, we will

contribute a capital of Php 450,000 and the three of us will each

pay Php 150,000 that can be recovered after 1 year of operation.

We have multiple expenses that need to be taken care of including

lease cost, promotion cost, machines and equipment cost and other

expenses.

MARKETING ASPECTS

1. MARKETING DESCRIPTION
The main target market of this business are the students and

residents, especially children, near the business location. Since

SM City Cabanatuan is surrounded with different school and

universities, it will be the perfect place for them to spend

their free time off of school.

The secondary target market of the proposed business is the

individuals who are visiting the said mall.

2. PRICING

Table 1
Cost, Markups and Price of Products of the Proposed Business
Markup
base on Selling
Product Cost (a) Formula
sale Price (c)
(b)
DESSERT
Ice Cream Cake, any
Php 30.40 20% a/(1-b) = c Php 38.00
flavor
Ice Cream Truffle,
Php 36.40 30% a/(1-b) = c Php 52.00
any flavor
Ice Cream Sandwiches,
Php 12.00 40% a/(1-b) = c Php 20.00
any flavor
Tiramisu, any flavor Php 39.52 24% a/(1-b) = c Php 52.00
Ice Cream Pie, any
Php 9.00 40% a/(1-b) = c Php 15.00
flavor
DRINKS
Yogurt, any flavor Php 30.00 25% a/(1-b) = c Php 40.00

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Milkshakes and Float,
Php 28.00 20% a/(1-b) = c Php 35.00
any flavor
Add Php 5.00 if you
want to upgrade.
Ice Cream, any flavor Php 24.30 10% a/(1-b) = c Php 27.00
Toppings and Scoops,
add Php 10.00

The markups of the products are computed to attain the

target return of investment within 2 years and 6 months.

3. PROMOTIONS

The following are the functional strategy to promote our proposed

business:

Social Media serves as our shop's platform to announce a

grand-opening, new flavors, news and offers, such as "buy-

one, get-one free."

Posters, stickers, banners and tarpaulins will be posted in

different areas in Cabanatuan City.

Pamphlets or flyers will be distributed inside and outside

the SM Cabanatuan.
Best advertising slogans, taglines will be put inside the

packaging.

4. Demand Analysis

In the first month of the business, it is expected to have a low

rate of profit due to the fact that the business is new to its

industry. It has lots of expenses with regards to advertisements

and promotions that will lead to have a less rate of profit but

after the first month, Delish Creamery Ice Cream Parlor expects

to grow and earn some of the invested capital because the demand

for its products are expected to tend a high rate. In all

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seasons, especially in summer and in all types of weather, locals

are fond of eating therefore; it is safe to assume that there

will not be a day when no one will eat at Delish Creamery Ice

Cream Parlor. Demand is also stimulated by festivities, be it

town fiestas or birthday parties, making ice cream very much a

part of every celebration.

5. Supply Analysis

The food we serve comes from our reliable sources. Our concern

here in the supply are just the ingredients and materials needed

because our products are produced and served by the owners in its

ultimate primeness and since all the ingredients are always

delivered by the suppliers there will be no problem with regards

to the supply of materials and ingredients.

6. Competitive Position

The primary competitors of the Delish Creamery Ice Cream Parlor

are within Cabanatuan City. The two ice cream and yogurt related

businesses within Cabanatuan City are the main competition. They

are:

Punos Ice Cream

Located at Mabini St., Cabanatuan City and at AH26, Cabanatuan

City (past Araullo University). Punos Ice Cream offers a variety

of Ice Cream and sherbets with typical flavors. Their products

are in a small cup or in a gallon of different sizes. They have

few stores in Nueva Ecija and currently have two within

Cabanatuan City.

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Yogurtree

Located at #474 Maharlika Highway, Brgy. H. Concepcion, Pan-

Philippine Highway, Cabanatuan City, 3100. This is a shop that

sells Yogurt and Ice Cream. However they are more focused on

Yogurts, with only 12 flavors to choose from. No other desserts

are in their specialty menu except for Yogurts and Ice Cream.

Although they serve few other desserts, they do not promote it

well and their business lacks in advertising.

It is probable that we have the competitive advantage against the

two mentioned competitors. Although Punos Ice Cream is already

known, we plan to advertise and promote our business for as much

as we can and let the possible consumers know that we have plenty

of products in our menu with a very wide variety of flavors to

choose from. We conclude that it is most probable that we can

compete against Yogurtree also, for we offer more products and

flavors than them. By a few months of business operation, we

expect that Delish Creamery Ice Cream Parlor will be more known

than Yogurtree and Punos Ice Cream within Cabanatuan City.

7. Marketing Program

Delish Creamery Ice Cream Parlor is a new business that enters to

ice-cream market therefore our business needs to create a

distinctive strategy to make the difference from existing

competitors. Our business has to take competitive advantages by

adopting the strategy toward products and services and gain prior

market share. Aside from our promotions and other advertisements,

we will introduce new recipes of Delish Creamery Ice Cream Parlor

by seasonally and give a discount to customers.

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