Chapter I

PROJECT SUMMARY

A. Name of the Firm

KAFéS

B. Location of the Head Office and Project

Corner of Avenida Veteranos and Paterno St., Downtown Area, Tacloban City

C. Project Rationale
In Tacloban, the need for a place to work and relax is growing in number. People
are constantly in search for a place where they can just sit, talk with friends or work on
their deadlines. Somewhere they can have snacks and a coffee or any drink at the side.
However, despite having a few places to cater this need, it is still not enough because of
the unlimited amount of people and high-end coffee shops that are not affordable by
everyone.

For this reason, the proposers had an idea to create something new and unique for
the Taclobanons that would also cater their needs with an affordable price. With this,
people won’t need to spend a lot for coffee and a quality time. They also thought of
giving the customers a new and unique experience by making coffee into cubes.

Although this business is new to Tacloban, it gives way to diversity in serving

coffee cubes with a good ambiance and peaceful surrounding where an individual or a
group of students can work. It caters to everyone, most especially the students, since the
coffee shop offers affordable prices but great quality services. Because of this, Kafés will
be a diverse and unique place that will take the customers to their comfort zones.

a) NATURE OF THE INDUSTRY

 A coffee shop is an establishment that primarily serves coffee and other
coffee related drinks for the students and the like, that are in search for a place to
stay and work.

The coffee shop industry offers more than just coffee and chill, but also a
place that can help students work and be more productive. This can also be a
convenient place for meet ups and small meetings.

Currently, there are more or less 10 coffee shops present in Tacloban City.
Most of which are located in Downtown Area.

b) ORGANIZATIONAL CHART

The coffee shop will be a partnership type of business organization. In line

with this, the general manager has an employee under his supervision who is in-
charge of customer service while the financial manager has the cashier under his
supervision.

D. Project Objectives
1. To provide a whole new cubetastic experience
2. To provide convenience to our customers’ coffee needs
3. To bring diversity in the coffee industry by providing unique coffee products

Chapter II
MARKET SUMMARY

A. Service Description
 One innovative feature that our product offers is that the coffee we are selling are
not the usual that is being served in a typical coffee shop, instead, this is made with a
twist by forming this coffee into ice cubes. Also, these cubes have variety of flavors
where customers can freely choose on what they desire. Lastly, since these coffee cubes
are not instant coffee, we came up with an idea wherein the customers can be entertained
through the color-changing mugs and a free access to Wi-Fi.

Common coffee shops have a limited menu that the customers can choose from
but with our product, they can choose their own mixture of flavors. Given that most
customers don’t have knowledge about our products, we, the owners will give
descriptions of combinations of our coffee if they want to try something new. In terms of
theirs needs in buying our products we have our employees who can guide them in their
preferred tastes.

The unique selling points that our coffee shop offers are:
• Our coffee cubes do not only define a simple coffee experience but it also
accommodates a new and exciting moment as a person savors the taste of our
different products with its unique presentation.
• This business includes a color-changing mug which will add to the uniqueness of
your coffee experience. Witness as our stunning mugs change into diverse colors
depending on your choice.
• Our product has an average pricing with the best quality which is affordable to the
students but not only exclusive to them. We aim to let the customers enjoy our
product without worrying about too much payment.

B. Market Needs
1. CUSTOMER SERVICE

Kafés provides a service that caters the customers with superior attention
that keeps a healthy and positive culture to the staffs and to the customers. Which
entails the staffs to talk to customers and provide them a service that is above and
beyond.

2. ACCESSIBILITY
 Having a 12-hour time of service to cater our customers in which they can
stay in our shop for a longer time. To provide a place to stay where the students
and the like can relax and do their work in a comfortable place even during the
nightfall.

3. SELECTION
The choice of coffee is unique and creative. In which the customers can
decide the amount of ice cubes to be put in their mugs and can pick what to put as
to what taste of coffee they want it to be.

C. Factors Affecting the Market

One factor that affects our business is the Inflation Rate. According to Trading
Economics, by the time this year 2019 started, the inflation rate had decreased from 5.1 to
4.4 and is still decreasing up to the current month. Given this fact, the people can afford
more products and services from different businesses compared to the past year. In terms
of KaFés, the customers can afford our products more since the cost of our production
will go down. Thus, there will be a need for us to increase our prices.

D. SWOT Analysis
STRENGTH
WEAKNESSES
 New coffee shop in the city
 Electricity shortage
 New and unique
 Some are not fully frozen
 Hands on owners
 Limited to coffee cubes
 Central location
 Differentiated products
 A place for hanging out
 Scarce resources
 Access to Wi-Fi
OPPURTUNITIES THREATS

 More customers  Competitors

 Middle class  Price Fluctuation
 Gains customers loyalty  Inflation
 Branch expansion  Scarcity
 Open to franchise  Highly cost market entry
 Attract more investors  Sustainability of the business
 STRENGTH

As a new coffee shop in the city, we would gain more popularity. People want
to try something new and unique. The city of Tacloban would be the first place to
offer some unique type of coffee which we offer these different types of coffee cubes.
Owners would be there to ensure utmost service towards their customers. The
downtown area in the city would be a good place because people go there every day.
Also, people would visit our shop for the cozy ambiance to hang out or do works and
for the access of free Wi-Fi.

 WEAKNESS

In operating a business, there will always be some factors that would cause
problems in it. Since Tacloban city experiences electricity problems like taking
turns/switching for the "blackout", we will have a difficulty in operating the business
because of the said problem. Through this, our products will be affected in as such
since the structure of our products are cubes which require refrigerator/cooler for it to
be served well and the melting time was fast. Our product will only be limited to
coffee cubes because the highlight of our business is the cubes itself although there
will be some "brownies" to partner up the coffee cubes. Our product will be seen by
the market as a differentiated product since the product itself was made of a different
and unique way. Since new in the market, there will be scarce/limited resources.
Unfortunately, owners doesn't have enough experience in handling this kind of
 business. Staffs that were to hired will still be trained because again, the business and
the product are unique.

 OPPURTUNITIES
There are people who are willing to try new things, thus more customers
would want to experience a new kind of way to serve coffee. Our customers would
mostly be students, although this would not be limited to them. Over time, people
would patronize our shop and would give us opportunity to expand our business.
Because of its growing popularity, entrepreneurs would be encouraged to franchise
our business – KaFés.
 THREATS

The location of the business ,which is particularly in Tacloban City, is

surrounded by different coffee shops therefore it would hinder the business to be
introduced to the existing market. Price fluctuation is inevitable. Since our economy
is elastic/flexible, the prices of the ingredients used in the production will vary so it
will change from time to time.

E. Market Program and Budget

1. OBJECTIVES
 To provide a whole new cubetastic experience
 To provide convenience to our customers coffee needs
 To bring diversity in the coffee business by providing unique coffee products
2. TARGET MARKET

KaFés will cater to people who wants their daily mug of great-tasting coffee in a
cozy ambiance. Such customers vary in age, although our location is near in schools and
is in a very busy street. Most of our customers will be high school, college and working
students. Furthermore, a lot of students gravitate more towards a local coffee shops to be
more suitable for studying, hanging out, or meet ups with peers, where they can peruse
without the need to pay fee at the door.

3. POSITIONING STATEMENT
 “To the Millennials of Tacloban City in Leyte who belongs to the middle class of
the economy. KaFés is a coffee shop that provides the best local and exotic coffee that
amazes the people in this city. Offering the uniqueness of the product and the warm felt
and cozy services that we offer. Thus, we guarantee you – satisfaction”

4. STRATEGIES
a. PRODUCT

Our product, the coffee cubes is the main asset of our business which brings
the customers new and unique experience. The proponents used slogan “A unique
brand of satisfactory experience” as the tagline which involves the uniqueness of the
coffee cubes that we will provide in Tacloban City. KaFés aims to satisfy the needs of
these generations that would benefit our target market in a way they will feel like they
are in their own cozy personal space.

Below is the logo of KaFés:

The logo above is our representation of our product which is a coffee made
into cubes. Coffee is derived form the Greek word “KaFés”, hence the name of our
product. This is different kinds of coffee put in ice cube trays to make the coffee
cubes. This creates a unique and thrilling experience for our customers to enjoy.

b. SERVICES
 All faculty and staff personnel are handpicked and chosen meticulously. Also,
it has the best characteristics and capabilities that accommodates the customers
expectations to our business. The employees cater the customers with superior
attention that keeps a healthy and positive culture between them. Which entails the
staffs to also talk to customers and provide them a service that is above and beyond.

c. PLACE

The place is near a convenient and accessible to fast reliable way of

transportation. And also made the considerations for the location; It must be spacious
enough to accommodate a good amount of people. In a customer’s perspective the
location of where they choose to stay, chill or meet up must be easy for them to find.
This is why the proponents recommended KaFés to be established along Avinida
Veteranos Street and Paterno Street, inside the Downtown Area of Tacloban City; It
is a very busy street and is well diverse of businesses. It is visibly exposed well
because it is established in a corner of the two streets, thus gets a ton of attention.
Moreover, it could be a haven for students and workers that needs a place to chill,
relax and enjoy and also near their schools and workplace. It also captures the spirit
of the Taclobanons because it is in the heart of the city.

Safety and security are the factors that strongly influence the decisions of the
customers. Wherein, the proponents also based the decision-making on where to put
the establishment the said two factors.

d. PRICE

MENUS
CUBED LATTE
ICED CAPPUCINO
ICED ESPRESSO
CUBED WHITE
CHILLED MACHIATO
ICED AMERICANO
 The term of payment is in cash in which the customers’ needs to pay as they
order. For the prices, the minimum is ₱85.00 and a maximum of ₱150.00 which would
base on the flavors and number of cubes the customers preffered.

e. PROMOTION INSPIRATION

For the people in Tacloban City to be aware of our coffee shop – KaFés. Listed
below is the promotional strategies:
i. FLYERS
Distributed flyers near the area of the establishment preferably near
its vicinity.

ii. SOCIAL MEDIA THROUGH FACEBOOK

Introduce the world through the most popular and used application
as of today’s generation.
 5. MARKET BUDGET

PROMOTIONAL STRATEGY COST

FLYERS (PRINTING) ₱50,000.00