Marichu Apilado
Corporate Planning
MBA
Business Concept
Nori’s Coffee Shop
I. DESCRIPTION OF THE PROPOSED BUSINESS
Opening a coffee shop business can be highly profitable when done right and with
passion. It has become a habitual drink by people without them knowing therefore it has become
a daily necessity. A product that is bought daily by consumers can be highly profitable. You can
generate sales (after winning your customer’s loyalty through specialty and quality offering of
course) from each person on almost a daily basis. It can operate for 24 hours without losing
customers. You can see students reviewing staying the whole night at a coffee shop, and working
professionals having graveyard shifts or those making reports or analyzing their business’ data.
Nori’s Coffee Shop is a small coffee shop business partnership by five siblings from
Olongapo City. What made us decide on having a coffee shop as our business is the high-profit
margin, many coffee shops make 70% of gross profit for every cup of coffee (a great example is
Starbucks). It also has high market demand, if we start a coffee shop we won’t need to worry if
our product is something people will want and willing to pay for. It is a market considered to
have growth and income potential due to its large consumer market. Our target market if we
open a coffee shop is primarily the students and teachers. Taking into account are students
mostly from middle income families and below with tight budget and minimal spending our
business will focus on product differentiation and low cost.
We will offer coffee coupled with tasty breads, pastries, and kakanins at an affordable
price that every student will sure to enjoy. We are well aware of the examinations twice a month
of every two weeks, thus students will often go out and stay overnight at fast-food chains due to
its affordability as compared to coffee shops. However, fast-food restaurants unlike coffee shops
does not offer a conducive place for students to study. Therefore, we come up with a business
idea that will address this need of the students.
A coffee shop is a great place to socialize, do informal business meetings, and hang out
with friends, and study or just have past time reading a book or browsing and scrolling through
social media. We are aware that venturing in this business needs hard work and huge capital, but
we are entrepreneurs driven by passion and in accounting, the higher the investment, the higher
the risk, but the higher the profit.
II. PROPOSED PRODUCT/SERVICE
Nori’s Coffee Shop is a business put up to address the need of most students in the
Gordon College. Although, it is still a matter under careful deliberation but the probability of
opening classes is already considered, and this is a passion driven business, hence, despite the
risk of most businesses closing down during this pandemic we will see to it that we are flexible
entrepreneurs capable enough to find opportunities in the midst of this pandemic. It is from
personal experience and observation. Coffee shops within the vicinity or almost all coffee shops
in Olongapo City offers coffee at prices not lesser than Php 100.00. This is the main reason why
students prefer to study in fast-food restaurants such as Jollibee and McDo despite the crowd and
noise, because of its affordability. Students can sit and study upon buying a meal worth Php
50.00. However, students studying in fast-food restaurants are now chased out because most fast-
food restaurants cater to customers who come and go to eat and students occupying a table upon
ordering a 50 peso meal is not good for their business. Upon observation we also found that there
is no coffee shops near the school. Most of the coffee shops are located at the heart of the city.
Our concept of selling is already common but it is new to coffee shop businesses, we will
offer a unique way of selling our every cup of coffee. It aims to provide convenience and ease,
since we will offer our coffee in combination with breads like (pandesal, ensaymada, pande
coco, muffins and such), pastries (slices or different variety of cakes), and kakanin (Biko, puto,
bibingka, cassava cake, pichi-pichi, and sapin sapin). You won’t need to spend 120 pesos for a
slice of blueberry cake to accompany you coffee if you feel hungry while studying. For every
cup of coffee there will be an accompanying bread, pastry or kakanin depending on customer’s
choice on top of it. This is a budget friendly coffee shop business specially catering students, so
we are offering our product for as low as 75 pesos.
Our coffee shop will offer the students affordability, proximity, and most especially the
safety. We will focus on offering affordability to students in the midst of this pandemic. This
pairing of coffee with variety of bread, pastry, and kakanin is based on the normal practice of
most Filipino. A cup of coffee and pandesal for example is a good breakfast to start the day. If
you are in a hurry you can always stop at our shop to grab a cup of coffee and you’re good for
the day. If you feel hungry at 1 o’clock in the morning while studying you can always buy
another cup of coffee accompanied with kakanin without the need to spend half of your week’s
allowance.
This area presents the SWOT analysis of the business concept to identify how we can
capitalize on our internal strength and recognize our weaknesses for further improvement,
maximize the use and exploit every opportunities to and mitigate risk by increasing awareness of
the external threats.
III. TARGET MARKET
A. Area Coverage
NORI’S Coffee Shop will engage in the selling of hot and cold coffee as our main
product with the combination of bread, pastries, and kakanins best paired with coffee, located
outside Gordon College of Olongapo City. The store will be built near the college at a strategic
position where it is accessible to everyone, especially to the students who would like to stay and
study.
B. Target Market
Filipinos across all socio-economic classes are regular coffee drinkers. They usually
consume coffee during breakfast and for social occasions to unwind and meet with friends. The
type of coffee most consumed is soluble coffee or single-served coffee mixes like the 3-in-1, 5-
in1, 7-in-1 sachets which offer easy preparation time and value for money. The price per sachet
ranges from PhP 5.00 to PhP 12.00.Over the years, the market of coffee shops (e.g. Starbucks,
Figaro, and Tea Leaf) has increased. These are usually patronized by young professionals and
more financially capable individuals who want to relax and catch up with friends and business
associates. The coffee industry sees promising growth as it gears up to address increasing
domestic demand in the future and to participate in the global market. We expect more Filipinos
will embrace an “over a cup of coffee” social interaction with family, friends and business
partners. Nori’s Coffee Shop will cater to people who want to get their daily cup of great-tasting
coffee in a relaxing atmosphere.
C. Target Sales
ANNUAL SALES PROJECTION
CUPSIZE PRICE ANNUALLY
Quantity Estimated Sales
Small 75 36,000.00 2,700,000.00
Medium 100 30,600.00 3,060,000.00
Large 125 23,400.00 2,925,000.00
TOTAL 90,000.00 8,685,000.00
IV. Required Funds
Our capital structure is set up to be 100% of equity investment. The equity investment will come
entirely from the owners who will invest Php65,000.00 each during this round of
investment. The investment will be required to meet the company’s first major milestone, which
is to become consistently cash flow positive by month 4 of operations.
V. Marketing Strategies
Social Media
Student today are mostly very active to their social media account, to be specific are
Facebook, Instagram, and the new is TikTok and Food Panda where everyone are interactive.
Nori’s Coffee Shop wanted to use social media as a platform for future customers to be informed
about the products for this Sit ‘n Sip is not just a mere store but an online entrepreneur who
wanted to offer a great coffee with the relax environment not just for business but through this
social media we can hear their suggestions and comments about our service.
