Rice tradin

DESCRIPTION OF BUSINESS
LOCATION OF THE OFFICE
The location of my business is in Malanday Marikina City because the owner of the business is a resident of Malanday Marikina City. I am currently renting a place in Malanday to put up my rice business. COMPANY HISTORICAL BACKGROUND

SM’s Rice Trading is a newly business
LEGAL STRUCTURE AND OWNERSHIP
SOLE PROPRIETORSHIP

The sole proprietorship is the simplest business form under which one can operate a business. The sole proprietorship is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts. A sole proprietorship can operate under the name of its owner or it can do business under a fictitious name, such as Nancy’s Nail Salon. The fictitious name is simply a trade name–it does not create a legal entity separate from the sole proprietor owner. The sole proprietorship is a popular business form due to its simplicity, ease of setup, and nominal cost. A sole proprietor need only register his or her name and secure local licenses, and the sole proprietor is ready for business. A distinct disadvantage, however, is that the owner of a sole proprietorship remains personally liable for all the business’s debts. So, if a sole proprietor business runs into financial trouble, creditors can bring lawsuits against the business owner. If such suits are successful, the owner will have to pay the business debts with his or her own money.
COMPANY EXISTING FACILITIES
Electricity, water and telephone are all important in operating a business. It helps in the serviceability of the business. MERALCO (Manila Electric Railroad and Light Company) will provide the power supply in the warehouse and the office. MAYNILAD (Maynilad Water Services, Inc.) will be the one responsible for the water system that will be used also in warehouse, office and the pond. The telephone line to be used in communicating and transacting with customers, as well as handling the company affairs, will be provided by PLDT (Philippine Long-Distance Telephone). •Rice boxes, 6 pcs – 12,622.50
•Scooper – 250.00
•Pushcart – 600.00
•Weighing scale – 900.00
•Sub-Total – P4,250.00
MISSION
Never stop searching for ways to better serve and satisfy our clients. At the same time, we aim to create a balance-work atmosphere above and beyond personal gain. VISION
Out of the box rice trade and agriculture with dignity and social responsibility GOALD AND OBJECTIVES
•To create a sustainable competitive advantage
•To raise the best quality of rice
•To expand to a new market
•To increase the company’s market share
•To fully return the investment made by partners in establishing the firm
PRODUCT
Rice is an important primary staple food in many Asian countries especially in the Philippines. Indicating the high demand for this commodity, planning to put up a rice dealership business in your area is a wise choice. There is already an assurance that this business will succeed because buyers are already there. Of course, in any kind of business, conducting a feasibility study is always a crucial step to take. This will assess the economic viability of your proposed business. We can offer: Thailand Rice, Vietnam Rice, Pakistan Rice, Indian Rice, Brazilian Rice and Philippine Rice (Philippine Rice is for local consumption/delivery only due to government regulation) I simply intend to establish a profitable wholesale-retail Rice Trading firm, in collaboration with our Rice Miller partners in Bulacan, Cagayan-Isabela, Nueva Ecija and Laguna. We are not exclusive to one supplier to be very sure on price competitiveness and standards. We can also facilitate imported rice, based on below broken percentage (e.g. Thailand, China Rice, etc.):
HOW TO ATTRACT CUSTOMERS
Flyers are given to passerby and somehow the BANNER of the newlyn put up business is also seen in tarpaulin.
HOW TO MEET DEMAND
We can offer Rice in accordance to local demands and corresponding quality requirement (e.g. restaurant/hotel quality, retailer’s quality, supermarket standard, etc.). We can supply both new and “laon.” GROWTH OPPORTUNITY
•To create a sustainable competitive advantage
•To raise the best quality of rice
•To expand to a new market
•To increase the company’s market share
•To fully return the investment made by partners in establishing the firm
MARKETING PLAN
MARKET ANALYSIS
TARGET MARKET
•Restaurants
•Hotels
•Rice Retailers
•Resorts
•Distributors
•Retail buyers within our scope area
GEOGRAPHIC AREA
Marikina was given the title Shoe Capital of the Philippines because of its notable shoe industry, being the biggest manufacturer of shoes in the Philippines, producing almost 70% of shoe production in the country. Marikina currently holds the World’s Largest Pair of Shoes and recognized by the Guinness World Records, also, the Shoe Museum houses part of the famous shoe collection of the former First Lady Imelda Marcos, shoes of the world leaders, celebrities and shoes of different countries, making it the largest collection of pair of shoes in the world. MARKET DEMOGRAPHICS
Public markets in Marikina are often divided into two, the dry goods section and the wet goods section. Commerce in these public markets are in full swing, especially in the early morning. Under the urban renewal program of the city, some of the public markets had been refurbished and given a fresher look, like the “Marikina Public Market” also known as “Marikina Market Mall”, or locally called the “Pamilihang Bayan”, the biggest and cleanest market in Metro Manila. COMPETITION
Modern shopping malls dot the city especially in the southern portion of Marikina. SM City Marikina, Blue Wave Mall at Marquinton, Robinsons Place, are some of Metro Manila’s major shopping and commercial centers stands along Marcos Highway. The popular commercial center that lies in Marikina is the Riverbanks Center. For the adventurous shoppers, you may venture beyond the hotel or shopping complex package and combine other interesting destinations for cheap buys such as in Marikina Market Mall. Bargaining is the major part of your shopping experience when you pass by that area, as it sells goods at rock-bottom prices. Riverbanks Center gives a comfort to the shoppers as it offers air-conditioned mall, but the price of the goods here is still very similar to the goods bought outside. Some of goods are cheap electronic products, toys and other cheap equipments needed into your homes.
MARKET STRATEGIES
IMAGE
PACKAGING
Sando Bags, 3000 pcs – P450.00
Estimated total investment cost – P72,360.00
PRICING
PRICE LIST
Sinandomeng, 450 kilos @P28.05/kg – P12,622.50
Dinurado, 400 kilos @34.00/kg -13,600.00
Wag-wag, 350 kilos @25.50/kg -8,925.00
Milagrosa, 250 kilos @25.05/kg -7,012.50
Long Grain, 350 kilos @25.50/kg -8.925.00
NFA Rice. 700 kilos @21.25/kg -14,875.00
MalagkH, 50 kilos @34,00/kg -1,700.00
Sub-Total – P67,660.00
NEW PRICE LIST WITH TAX
RICE
NFA, Well milled —27.0027.0028.00–
NFA, Premium —-30.0032.00–
Commercial, Regular milled 30.4026.4031.0032.0028.0035.0039.25- Commercial, Well milled 32.8030.8033.8035.0033.0037.0043.30- Commercial, Premium 33.6032.6034.4040.0036.0045.0048.00- Commercial, Special (Fancy) 36.0034.4044.0045.0040.0065.0059.00
ADVERTISING AND PROMOTIONS
Discounts. Customers buying 200 kgs.- 300 kgs. of rice will be given 5% discount on their total purchases. For every 100 kgs. purchase above the 200 kgs. margin will be entitled to a 1% increase in their discounts. On the other hand, the facility supervisor shall be the one in charge in supervising the use of equipment, the delivery of the mud crabs to the wholesalers as well as to the all transactions made by the company. The store would hold a banner in tarpaulin infront and will give away flyers to compare prices to other competitors. MANAGEMENT, ORGANIZATIOsN AND PERSONNEL
ORGANIZATIONAL CHART
PRINCIPAL STOCKHOLDER
The Principal Stockholder is Femie Dina B. Sonido, the sole proprietor of The Best Rice Quality and Price.
EXECUTIVE COMMITTEE
Executive Committee is Femie Dina B. Sonido, the sole proprietor of The Best Rice Quality and Price. FUNCTIONS AND RESPONSIBILITIES / THE MANAGEMENT TEAM
Proprietress – Responsible in the over – all operation of the business from Marketing to Book keeping to Management operation.
Server – Responsible for sales remittance.
Do assigned tasks and assignment given by the manager
Do the end line jobs in the operations
BACKGROUND
Opportunities in the rice business. To illustrate the rice business, let us analyze the case of a typical Filipino rice farmer and private sector processing enterprise. Rice farms in the Philippines are covered by the agrarian reform law, and the law has effectively dismantled the feudal landlord and tenant relationship, where the landlord owns the land and the farmer is a sharecropper. The average land holding is about 3 hectares, and the average scale of rice farming for most of Southeast Asia. The farm gate price of freshly harvested wet paddy ranges from $0.17 per kilo to $0.31 per kg depending supply and demand of rice in the market. Paddy pricing is very speculative, and when business intelligence indicates a shortage, prices of paddy at harvest shoot up. The farm yields of farmers also varies widely, but a farmer planting the high yielding variety and following recommended practice can easily produce 4 tons per hectare. The gross value of his production at an assumed $0.21/kg is therefore (4 tons/ha x 3 ha. x $0.21/kg x 1000) $2520. It is estimated that it costs the farmer $359 per hectare to grow rice, or $1077 for the 3 hectares.
The farmer therefore nets $1443 in a cropping season of 4 months. A local trader assembles the harvest of farmers in an area and delivers the same to the processor. For his effort, the trader charges $0.013 per kg, or $156 for the 12 tons of paddy. The price therefore of wet and dirty paddy delivered to the processor increases to $0.223 per kg, or $2676. The average moisture of wet paddy during the wet season is 24% wb and has a purity of 95%. A kilogram of paddy at 24% wb weighs 0.868 kg at 14% wb after removing the 5% impurities, there is only 0.825 kg of clean and dry paddy out of one ton wet paddy. The effective price of paddy to the processor is therefore ($0.223/0.825) or $0.27 per kg of clean and dry paddy. On the average a good commercial mill working with good HYV paddy will yield 65% rice of which 80% is head rice, 17% is brokers, 8% is rice bran, and the remainder is the hull. From 0.825 ton of clean and dry paddy, a miller will yield 536 kg of ungraded milled rice, and 66 kg of bran. The average wholesale price of HYV ungraded rice is estimated at $0.46 per kg. Rice bran sells at $0.09 per kg. Rice hull has no commercial value, although some processors use it as a source of thermal energy. The processor therefore grosses (536 kg x 0.46) + (66 kg x 0.09) or $252.50 per ton of paddy bought. If he bought all of the 12 tons of the farmer, he makes gross of $3030. The cost of paddy was $0.223 per kg., $223 per ton, or for the 12 tons $2676. Add to this the cost of processing and marketing estimated at $0.025 per kg of paddy bought, or $25 per ton of paddy bought, or $300 for the 12 tons of paddy. The processors’ net before taxes is therefore (252.50 – 223 – 25) or $4.50 per ton of paddy bought, or $54 for the 12 tons. A small processor with a 1 ton per hour mill, operating 8 hours a day for 200 days a year can process 1600 tons of paddy. His net sale if he operates at 100% capacity on an 8 hour day, would therefore be $7,200. Many mills operate 12 hours daily.
FINANCIAL PLAN
BUDGETARY REQUIREMENTS
Note 1: Pre-Operating Expenses
Feasibility Study 15,000.00
Consultation 10,000.00
Recruitment and Training Costs 5,000.00
Marketing Costs 40,000.00
Utilities 25,000.00
Uniform Costs 44,500.00
Farm Tools 2,925.00
Identification Card Costs 2,300.00
Total Pre-Operating Costs 144,725.00
Note 2: Organizational Costs
SEC Registration Fee 2,660.00
DTI Registration Fee 2,000.00
Notarial Fee 300.00
DENR Registration Fee 500.00
BIR Registration Fee:
Documentary Stamps 15.00
Print Receipt Fee 4,000.00
BIR Registration Certificate Fee 500.00 4,515.00 Mayor’s Permit:
Sanitary Fee 900.00
Permit Fee 2,000.00
Signboard Application Fee 1,150.00
Health Certificate 700.00
Occupational Fee 1,400.00
Zonal Application Fee 545.00 6,695.00
Barangay Clearance 800.00
Total Taxes and Licenses 17,470.00
Quickbooks Pro Software 12,500.00
Total Organization Costs 29,970.00
SOURCE OF FINANCING
The initial capital investment by the partners will reach Php 500,000.00 where the proprietor shall withdraw from her own personal savings so she wont be worried on paying the bank.
PROJECTED FINANCIAL STATEMENTS
INCOME STATEMENT
Income Statement
For the Years Ended, Dec. 31, 2014- 2018
Note20142015201620172018
Sales1 7,616,160.00 12,136,820.00 13,328,280.00 14,523,840.00 15,718,580.00 Cost of Goods Sold2 (4,210,667.80) (4,046,312.10) (4,163,411.42) (4,280,968.06) (4,398,512.62) Gross Profit 3,405,492.20 8,090,507.90 9,164,868.58 10,242,871.94 11,320,067.38 Less:
Selling Expenses3 (688,466.00) (692,994.00) (697,612.56) (702,323.49) (707,128.64) Operatng Income 2,717,026.20 7,397,513.90 8,467,256.02 9,540,548.45 10,612,938.74 Less:
Administrative Expenses4 (564,780.33) (570,393.23) (574,421.60) (578,534.27) (582,731.04) Income before tax 2,152,245.87 6,827,120.67 7,892,834.42 8,962,014.18 10,030,207.70 Less:
Income Tax Expense5 (645,673.76) (2,048,136.20) (2,367,850.33) (2,688,604.25) (3,009,062.31) Net Income 1,506,572.11 4,778,984.47 5,524,984.09 6,273,409.92 7,021,145.39
CASH FLOW
December 31, 2014- 2018
Current AssetsNotePre- Operating20142015201620172018
Cash in Bank1 2,041,016.75 3,461,077.28 8,244,471.41 13,714,135.21 19,779,461.75 26,422,020.19 Petty Cash Fund 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 Accounts Receivable2 – 380,808.00 610,649.08 676,290.49 742,732.63 809,731.55 Allowance for Bad Debts3 – (3,808.08) (9,876.49) (16,540.63) (23,802.55) (31,661.84) Office Supplies4 11,568.25 – – – – – TOTAL CURRENT ASSETS 2,102,585.00 3,888,077.20 8,895,244.00 14,423,885.07 20,548,391.83 27,250,089.90 Non-Current Assets
Office Furniture and Fixtures5 43,500.00 43,500.00 43,500.00 43,500.00 43,500.00 43,500.00 Accumulated Depreciation Office Furniture and Fixtures – 6 (5,350.00) (10,700.00) (16,050.00) (21,400.00) (26,750.00) Delivery Equipment7 2,044,000.00 2,044,000.00 2,044,000.00 2,044,000.00 2,044,000.00 2,044,000.00 Accumulated Depreciation Delivery Equipment-8 (205,200.00) (410,400.00) (615,600.00) (820,800.00) (1,026,000.00)
Office Equipment
9 64,020.00 64,020.00 64,020.00 64,020.00 64,020.00 64,020.00 Accumulated
Depreciation Office Equipment – 10 (11,654.00) (23,308.00) (34,962.00) (46,616.00) (58,270.00) Farm Equipment11 399,800.00 399,800.00 399,800.00 399,800.00 399,800.00 399,800.00 Accumulated Depreciation Farm Equipment – 12 (75,260.00) (150,520.00) (225,780.00) (301,040.00) (376,300.00) Farm Furniture And Fixtures13 8,000.00 8,000.00 8,000.00 8,000.00 8,000.00 8,000.00 Accumulated Depreciation Farm Furniture And Fixtures – 14 (800.00) (1,600.00) (2,400.00) (3,200.00) (4,000.00) Office Building15 788,400.00 788,400.00 788,400.00 788,400.00 788,400.00 788,400.00 Accumulated Depreciation Office Building – 16 (39,420.00) (78,840.00) (118,260.00) (157,680.00) (197,100.00) Warehouse17 1,500,000.00 1,500,000.00 1,500,000.00 1,500,000.00 1,500,000.00 1,500,000.00 Accumulated Depreciation Warehouse – 18 (75,000.00) (150,000.00) (225,000.00) (300,000.00) (375,000.00) Land19 1,875,000.00 1,875,000.00 1,875,000.00 1,875,000.00 1,875,000.00 1,875,000.00 TOTAL NON- CURRENT ASSETS 6,722,720.00 6,310,036.00 5,897,352.00 5,484,668.00 5,071,984.00 4,659,300.00
TOTAL ASSETS 8,825,305.00 10,198,113.20 14,792,596.00 19,908,553.07 25,620,375.83 31,909,389.90
BALANCE SHEET
Total Liabilities 79,930.26 167,116.25 186,469.99 205,830.81 225,107.60 Total Assets 8,717,228.97 11,045,336.42 13,762,010.50 16,921,230.85 20,506,904.61
0.0091692280.0151300280.0135496190.0121640570.010977161
Total Liabilities 79,930.26 167,116.25
186,469.99 205,830.81 225,107.60 Total Equity 8,637,298.71 10,878,220.18 13,575,540.51 16,715,400.04 20,281,797.01
0.0092540810.0153624620.0137357330.0123138430.011098997
Net Income 76,752.86 2,500,040.43 3,023,666.94 3,547,125.75 4,067,858.97 Net Sales 5,572,500.00 8,879,400.00 9,753,300.00 10,627,200.00 11,496,900.00
0.0137735050.2815551080.3100147580.3337780180.353822245
Net Income 76,752.86 2,500,040.43 3,023,666.94 3,547,125.75 4,067,858.97 Total Assets 8,717,228.97 11,045,336.42 13,762,010.50 16,921,230.85 20,506,904.61
0.0088047310.2263435290.2197111340.2096257520.198365333
Net Income 76,752.86 2,500,040.43 3,023,666.94 3,547,125.75 4,067,858.97 Total Equity 8,637,298.71 10,878,220.18 13,575,540.51 16,715,400.04 20,281,797.01
0.0088862110.2298207230.2227290280.2122070510.20056699
FINANCIAL ANALYSIS
•The financial statements are prepared and presented in accordance with Financial Reporting Standards Council (FRSC) Philippine Accounting Standards (PAS1). •All projections are made for five years, from 2014-2018. •Organizational Costs and Pre- Operating Expenses will be deducted from the capital of the partners in their initial Investment. •Crabs are priced based on market price.
•Accounts receivables are estimated to be 5% of sales. 99% of the accounts receivable will be collected next year. •Allowance for Bad Debts will be established based on 1% of Credit Sales. •All purchases to be made on cash
basis.
•Office supplies expense and Indirect Materials will increase based on inflation rate (4.5).
YearInflation Rate
20088.3
20094.2
20103.8
20114.6
20123.2
20132.9
Total27
Divided by6
Average Inflation Rate4.5
•Electricity bill shall be divided into 35% factory overhead and 30% selling and 35% administrative expenses. •The budgeted costs annually will be Php24,000 for Repairs and Maintenance, Php104,000 for Fuel, Php240,000 for Electricity, Php120,000 for Water, and Php24,000 for Telephone. •Repairs and Maintenance of location and fixed assets increase 2% every year. Repairs and Maintenance of location and fixed assets shall be divided into 30% selling and 30% administrative and 40% factory overhead. •Fuel expense, water expense, electricity expense, and telephone expense will increase by 2% annually. •Taxes and licenses will be computed based on existing laws. •SSS, HDMF, PhilHealth and Employer’s contribution will be based on the rules provided by the concerned institutions. •91.67% of SSS Premiums Payable, HDMF Premiums Payable, PhilHealth Premiums Payable, EC Premiums Payable, Utilities Payable and Income Tax Payable will be paid during the year and the remaining will be paid next year. •The company will maintain a petty cash fund of Php 50,000. •Income tax of 30% is used even if there are no provisions that will arise as regard the changes in the said taxes. •Fixed assets shall be continuously maintained and improved. •Withdrawals of the partners will be 3% of their beginning Capital Balances, starting December 31, 2014 •Office Supplies are purchased every beginning of the year except for the first year which will be purchased on the pre- operating period. •Property taxes will be based on Philippines applicable Real Estate tax rate that varies depending on actual and zoning value of the property.
OVERALL FIRM LIQUIDITY / DEGREE OF INDEBTNESS / PROFITABILITY
20142015201620172018
January – 2,427.00 2,669.00 2,912.00 3,155.00 February – 2,427.00 2,669.00 2,912.00 3,155.00 March – 2,427.00 2,669.00 2,912.00 3,155.00 April
– 2,427.00 2,669.00 2,912.00 3,155.00 May* 2,287.00 2,426.00 2,668.00 2,911.00 3,154.00 June 2,287.00 2,426.00 2,668.00 2,911.00 3,154.00
July 2,287.00 2,426.00 2,668.00 2,911.00 3,154.00 August 2,287.00 2,426.00 2,668.00 2,911.00 3,154.00 September 2,287.00 2,426.00 2,668.00 2,911.00 3,154.00 October 2,287.00 2,426.00 2,668.00 2,911.00 3,154.00 November 2,427.00 2,669.00 2,912.00 3,155.00 3,397.00 December 2,427.00 2,669.00 2,912.00 3,155.00 3,397.00 Total Production 18,576.00 29,602.00 32,508.00 35,424.00 38,338.00
ROI
The computation shows an average of 35.6% which means that the business is maximizing its assets throughout the operation. ROI – Net Income/ Total Assets
YEAR NET INCOMEASSETSROI
2014 76,735253,22830.30%
2015126,237338,85137.25%
2016195,142495,25739.40%
2017280,122736,05838.86%
2018382,7851,128,15533.93%
35.79%
20142015201620172018
Current Assets 2,407,192.97 5,147,984.42 8,277,342.50 11,849,246.85 15,847,604.61 Current Liabilities 79,930.26 167,116.25 186,469.99 205,830.81 225,107.60
30.1161645930.8048108944.3896751757.5678973370.40013239
Quick Assets 2,407,192.97 5,147,984.42 8,277,342.50 11,849,246.85 15,847,604.61 Current Liabilities 79,930.26 167,116.25 186,469.99 205,830.81 225,107.60
30.1161645930.8048108944.3896751757.5678973370.40013239
Working Capital 8,637,298.71 10,878,220.18 13,575,540.51 16,715,400.04 20,281,797.01 Total Assets 2,407,192.97 5,147,984.42 8,277,342.50 11,849,246.85 15,847,604.61
3.588120612.1131027761.6400844241.410671941.279802059
RETURN OF EQUITY
Statement Changes in Equity
For the Years Ended, December 31, 2014- 2018
Pre- OperatingTotal
Beginning Capital 3,000,000.00 3,000,000.00 3,000,000.00 9,000,000.00 Less:
Organizational Costs (9,990.00) (9,990.00) (9,990.00) (29,970.00) Pre- Operating Expenses (48,241.67) (48,241.67) (48,241.67) (144,725.00) Add:
Share in Net Income
Total Capital 2,941,768.33 2,941,768.33 2,941,768.33 8,825,305.00 Less: Withdrawals – – – – Ending Capital 2,941,768.33 2,941,768.33 2,941,768.33 8,825,305.00
RATIO OF OPERATING EXPENSES TO SALES
20142015201620172018
Repairs and Maintenance Monthly 2,000.00 2,040.00 2,080.80 2,122.42 2,164.86 Operating Months1212121212
Annual Repairs and Maintenance 24,000.00 24,480.00 24,969.60 25,468.99 25,978.37 Share of Administrative 0.30 0.30 0.30 0.30 0.30 Repairs and Maintenance for Admin. 7,200.00 7,344.00 7,490.88 7,640.70 7,793.51
2014201520162017
Net Income before tax 2,152,245.87 6,827,120.67 7,892,834.42 8,962,014.18 Percentage30%30%30%30%
Income tax Expense 645,673.76 2,048,136.20 2,367,850.33
2,688,604.25
TABLE 1 AGE OF THE RESPONDENTS
AGERESPONDENTS%
15-20330%
21-30440%
31- above330%
TOTAL10100
TABLE 2 GENDER OF THE RESPONDENTS
GENDERRESPONDENTS%
MALE770%
FEMALE330%
TOTAL10100
TABLE 3 OCCUPATION OF THE RESPONDENTS
OCCUPATIONRESPONDENTS%
STUDENT330%
SELF EMPLOYED440%
EMPLOYED330%
UNEMPLOYED00%
TOTAL10100
TABLE 4 DO YOU AGREE THAT THIS KIND OF BUSINESS IS PROFITABLE ANSWERSRESPONDENTS%
YES880%
NO220%
TOTAL10100
The respondents agrees that this kind of busines is profitable because rice is the main meal that Filipinos had everyday and every meal. And with the lowest price that would be available in Marikina, people will be delighful to buy in this kind of store where their budget can fit and that it offers the lowest price in town. TABLE 5 IF THIS RICE BUSINESS WOULD BE AVAILABLE IN THE MARKET WILL YOU GO AND BUY? ANSWERSRESPONDENTS%
YES990%
NO110%
TOTAL10100
The respondents agrees that they will buy in this new store because of the lowest price they offer.
FOUR P’S
PRODUCT
Discounts. Customers buying 200 kgs.- 300 kgs. of rice will be given 5% discount on their total purchases. For every 100 kgs. purchase above the 200 kgs. margin will be entitled to a 1% increase in their discounts. On the other hand, the facility supervisor shall be the one in charge in supervising the use of equipment, the delivery of the mud crabs to the wholesalers as well as to the all transactions made by the company. The store would hold a banner in tarpaulin infront and will give away flyers to compare prices to other competitors. PRICING
Sinandomeng, 450 kilos @P28.05/kg – P12,622.50
Dinurado, 400 kilos @34.00/kg -13,600.00
Wag-wag, 350 kilos @25.50/kg -8,925.00
Milagrosa, 250 kilos @25.05/kg -7,012.50
Long Grain, 350 kilos @25.50/kg -8.925.00
NFA Rice. 700 kilos @21.25/kg -14,875.00
MalagkH, 50 kilos @34,00/kg -1,700.00
Sub-Total – P67,660.00
PROMOTION
Promotion is one of the major components of the company total marketing mixture. The proposed business establishment will be promoted not only personally and verbally, but it will also be promoted through flyers or brochures its advantage to us to promote our restaurant because the nearby mall also located in our vicinity.
The establishment will concentrate on producing high quality rice and providing excellent services to make sure that the customers will get a
delightful eating the rice that they bought in the establishment, from the word of mouth of patrons, there would be new customers that would like to try it out and wants to have the same experience. PLACE
The business shall be located in Marikina City. Because the site is busy and it is nearby a supermarket wherein there are many walk-in customers and all walks of life and different classes of people would come to shop and stop at the supermarket that’s why there is a great possibility that our proposed business would click and that it would become a successful one. It is probable for one hundred percentage of profitability most especially that this is restaurant and at the same time a unique touch of different menu is served.