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Business PlanSugar-FreeChocolateManufacturingCompanyPRINCE JHIAN SUGAR-FREE CHOCOLATESubmitted by: JAYSON M. JOSESubmitted to: Prof. LOUISE IAN D. AQUINOChapter IINTRODUCTION:The PRINCE JHIAN SUGAR-FREE CHOCOLATE COMPANY will start a business by Manufacturing Chocolates. Providing a better chocolate...

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Business Plan Sugar-Free Chocolate Manufacturing Company PRINCE JHIAN SUGAR-FREE CHOCOLATE

Submitted by: JAYSON M. JOSE Submitted to: Prof. LOUISE IAN D. AQUINO

Chapter I INTRODUCTION: The PRINCE JHIAN SUGAR-FREE CHOCOLATE COMPANY will start a business by Manufacturing Chocolates. Providing a better chocolate with less sugar while still maintaining the nutrition of children and their satisfaction. Our target markets are children and all age groups, but most of all, to be aimed is become the largest manufacturer of chocolates in the whole PHILIPPINES. The customers to whom our products will be supplied as retailers, wholesaler and traders not only in PANGASINAN but also METRO MANILA, CEBU and DAVAO. But as for start-up, TOWN of Mangaldan is our focus, displaying our product at their Pasalubong Center; Our location will facilitate convenience to many of our customers. Our goal is to make the existing supermarket as retailers, wholesalers and traders of our product like MAGIC MALL, CSI MALL, NEPO MALL, ROBINSONS MALL, SM CENTER DAGUPAN AND CITI MALL they are our target for product distribution. We would target the consumers of all age groups. The products that we offer are:  Sugar-free Plain Chocolate  Sugar-free Milk Chocolate  Sugar-free Fruit n’ Nut Chocolate The Core competencies on which our Company would be competing are taste and Quality of our Chocolate.

General company Description: Our company will be in the confectionary business and will be involved in manufacturing and distributing SUGAR-FREE CHOCOLATE.

VISION: Our vision is to be the leading manufacturer of CHOCOLATES in the whole Philippines.

MISSION: We seek to produce high quality products at competitive price, using modern technology to provide high satisfaction to the consumers.

Objectives:  To manufacture and provide the customers with the quality products to the best interest of the customers.  To create price competitive products as part of the effect to increase the World access to high-quality chocolates.  To ensure a hygiene and clean environment as to continue to produce: Safe and Tasty Products.  To strive to Meet and Exceed Customer’s Expectations so as to ensure sustainable relationship.

Target Market:    

Upper class Middle class Lower class All age group

About Chocolate Industry The chocolate industry in the Philippines developed after introducing the cocoa tree into Philippine agriculture. ... Since then the Philippine cocoa industry has been the primary producer of cocoa beans in the Southeast Asia. There are many areas of production of cacao in the Philippines, owing to soil and climate. The Philippines produces more than 10,000 metric tons of cacao per year and exports about $6 million worth to the international market. The country, however, imports more than $100 million worth of cacao from other cocoa producing countries. In total, Philippines have the average annual cocoa consumption is 50,000 Metric Tons (MT), according to the Agriculture Department. To push sales chocolate companies have been mainly adult audiences. Chocolate are being presented as snack food for the new target audiences. The chocolate segments are characterized by high volumes, huge expenses on advertising, low margin and price sensitivity. Philippine chocolate market is dominated by both local and international companies. The three largest companies in the Philippines processing cocoa are Universal Robina, Commonwealth Foods, and Goya—all of which are located within Metro Manila. Also contributing to the chocolate market in the country are several well-known commercial brands such as Nestlé, Hershey's, and Cadbury Adams. Universal Robina struggles due to rising costs and adopts new long-term strategies. Local company Universal Robina Corp remained the leader in chocolate confectionery with its popular Jack 'n' Jill in 2019, which consumers appreciate for its affordable pricing and focus on local tastes.

On the other hand Cadbury Adams has come up with a unique proposition for the young millennials they produce a product TOBLERONE and 5STAR. Cadbury succeded in their stategy for targeting millenials aged 18-20 years old and even college student which bring them excitement. Not to mention, there are already existing cacao processing companies or chocolate industry in the Philippines like; Multirich Foods Corporation, Columbia International Foods Products Inc., Monde Nissin, Twin Oaks Foods Corporation, Stateline Snack Food Corporation, New Unity Sweets Manufacturing, Annie Candy Manufacturing, Gracepoint Enterprises (Lala) and these companies are my competitors.

Core Competencies: The core competencies on which our company will compete are:  Taste By continuing, the “Prince Jhian Sugar-Free Chocolate” the flavor begins to fulfill your mouth the moment the chocolate begins to melt in your tongue like butter and it taste like pure chocolate rather than cacao powder. At first there are so much pleasure in tasting the chocolate. It may be difficult to focus on the specific of flavor. First perception to the consumer would describe for the chocolate even it is sugar less or sugar-free would be “Tasty and Chocolaty”.  Quality The raw ingredient are of finest quality and also care is taken of the production process; roasting and crushing the cacao beans and mixing the cacao paste liquid stevia or granulated stevia and other ingredients such as vanilla or milk. “Prince Jhian Sugar-free Chocolate” are high quality chocolate as they are shiny brown, breaks cleanly and smooth. “Prince Jhian Sugar-Free Chocolate has sufficient quantities of cocoa butter and vegetable fat so that it does not become greasy or sticky at ambient room temperature.

Company Ownership: The “Prince Jhian Sugar-Free Chocolate Company” will be based as a partnership , with owner JAYSON M. JOSE and ROSENDO O. BAGASINA as a long time resident of Mangaldan, Pangasinan. I will be able to facilitate the production of chocolate with my employees. And I also studies business administration major in marketing for better product study, strategy implementation and managing of personnel.

Chapter II Business Logo:

Product Logo:

Proposed Location: For my business the proposed location for Production and Manufacturing of chocolates would be at 33 San Jose St. Brgy. Osiem, Mangaldan Pangasinan with the lot area 4000 square meters for manufacturing only. The proposed location for product display will be at PASALUBONG CENTER of Mangaldan Public Market.

Topographic Map:

Sketch Map:

Business Layout:

Business Design:

Analysis to Environment: Competitor’s Analysis Local and International Cocoa-processing Companies

COMPANY

FOUNDED

Universal Robina Corporation

1954

Gracepoint Enterprise(LALA)

1975

Annie Candy Manufacturing

1987

BRAND PORTFOLIO OR PRODUCTS Hello-choco ccoated wafers, Cream-o, Jack n Jill Pretzets chocolate sticks, Choco coated wiggles,Nips, SwissMiss, Cloud 9, Loaded, Choco Knots All natural LALA milk chocolate, Classic LALA milky chocolate Annie’s B. caramel chocolate, Big top, Annie chocolate chips, Annie’s bunny grahams, Annie’s double chocolate, Queen Anne, Annie’s chewy chocolate chip

New Unity Sweets 1955 Manufacturing Corporation

Choc-Nut

Stateline Snack Food Corporation

ChocLets crispy crunch, Choco-chum, Gotcha, Nimble, Barnuts Chocolate covered marsmallows, Candi flavored chocolates, Milk chocolates, Flavored chocolates sticks. Bingo, Cookie chip, nissin butter coconut chocolate 3Kings, Champi chocolate candy, Choco P-nuts Rolled wafer chocolate, Choco-Mucho, Krimstiks Choco Kit Kat, Smarties, Wonka Hershey’s Milk and Chocolate, Kisses, Pot of gold, Resse’s Icebreakers etc. Diary Milk, Diary Milk Fruit n Nut, Dairy Milk shots, Diary milk roasted almond, Diary milk silk

1990

Twin Oak Food Corporation 1979

Monde Nissin

1980

Columbia

1997

Multirich Foods Corporation

1997

Nestle Hershey’s

1960s 1894

Cadbury

1948

These companies and corporation are my competitors in chocolate processing. But my products are different from among of them. With a proposition of a SUGAR-FREE CHOCOLATE that good for the health, examples are: reduce the risk of diabetes for adult and avoiding tooth decay for children.

Chapter III OUR PRODUCTS Our Company will be dealing in the manufacturing of 3 products. They are: 1. Sugar-Free Milk Chocolate 2. Sugar-Free Fruit & Nut Chocolate 3. Sugar-Free Plain Chocolate

Ingredients of Sugar-Free Milk Chocolate Liquid Stevia Sweetener or (Granulated Stevia), Full Cream Milk Powder, Vegetable Fat, Emulsifier, Flavors, Whole Cow’s Milk, Cocoa Butter.

Recipe for Sugar-Free Milk Chocolate:  Take one cup of liquid stevia sweetener or (granulated stevia), one cup of milk powder.  One heaped table spoon of cocoa powder, about half table spoon of butter, and to this add the minimum quantity of water required to make a thick butter.  Place this butter on the stove and bring it to a boil on a low flame.  When the butter becomes thick, stop the boiling. Cool it.  Pour into a suitable moulds, cut, cool in the fridge and gets it ready.

Ingredients of Sugar-Free Fruit & Nut Liquid Stevia Sweetener or (Granulated Stevia), Full Cream Milk Powder, Raisins, Cocoa Butter, Cocoa Butter, Cocoa Mass, Almonds, Vegetable Fat, Emulsifiers, Flavors.

Recipe for Sugar-Free Fruit & Nut Chocolate:  First take whatever moulds you like and grease it with butter. Set this aside for a moment.  Melt the chocolate either in double boiler method or in microwave. Remove it and set aside.  Chop up all your nuts and dried fruits. Add it to the chocolate and mix well.  Take a spoonful of this and fill your prepared mould and put in the deep freeze for 1 hour.  Unmould it and keep it in the fridge until serving.

Ingredients of Sugar-Free Plain Chocolates Liquid Stevia Sweetener or (Granulated Stevia), Full Cream Milk Powder , Cocoa Butter, Cocoa Mass, Vegetable Fat, Emulsifiers, Flavors.

Recipe for Sugar-Free Plain Chocolate:  Combine cocoa and Liquid Stevia Sweetener or (Granulated Stevia) and blend until all lumps of cocoa are gone. Add water and salt and mix it well.  Cook over medium heat, bringing it to a boil.  Keep boiling until thick, stirring to keep from overflowing.  Remove from heat and let it cool.  When cool, add vanilla.  Then put this in your milk, just like the store bought stuff.

MARKETING PLAN Economics Total size of chocolate consumption of the Philippines in the past year is 50,000 Metric Tons (MT) and the chocolate production produce by local farmers alone is only about 10,000 Metric Tons (MT). It means, consumption is greater than production. This problem needs an excellent research so that scarcity regarding chocolate will be solved.

Trends in Consumer Preferences  The range and variety of chocolates available in malls seems to be growing day by day which leads to lot of impulse sales for chocolates companies.  Chocolates which use to be unaffordable is now considered mid-priced  Branded chocolate have become more popular.  Instead of buying foreign chocolates products, people will prefer to buy countrymade sugar-free chocolates.

Barriers to Entry    

Huge start-up costs Ensuring good quality products to the customers High level of competition from the well established brands. To keep price of the product low, as it is a price sensitive market.

Overcoming the barriers to entry  To overcome the barrier of huge start-up costs our machinery would be taken for lease for first few years of business.  Marketing of our products would be on the basis good quality healthy products to provide the competitive advantage.

Products From Customer’s point of view chocolate is a product which shows their impulse buying behavior. Customers are looking for low priced chocolates and also should have a good taste.

Features and Benefits Sugar-Free Milk Chocolate  Sugar-free Milk chocolate is a stimulator, to the brain, to the emotion, thus, increases your stamina.  Sugar-free Milk Chocolate is high in vitamins B1, B2, D and E. It also contains potassium and magnesium.  Sugar-free Milk Chocolate contains antioxidants that boost the immune system.

Sugar-Free Fruit & Nuts Chocolate  Almonds help in the creation of blood cells, hemoglobin and help in proper functioning of vital organs of the body.  Almonds also help in weight loss, lowering blood pressure, reduction inrisk o recurrent coronary heart disease, solving constipation and etc.  Raisin helps in digestion problems, acidity or constipation problem.  Raisins contain considerable amount of iron  Cashew nuts provide protein and fiber to the body  Cashews have no cholesterol. Cashews contain healthy mono unsaturated fat that promotes good cardiovascular health.

Sugar-Free Plain Chocolate  Chocolate contains essential trace elements and nutrients such as iron, calcium and potassium and vitamins like A, B1, B2, C, D, and E.  Cocoa is also the highest natural source for magnesium.

 The high magnesium content of chocolate is beneficial for the cardiovascular system and hypertensions.  Cancer Fighter  High in antioxidants  Cocoa contains flavones, a type of flavonoid that is only found in cocoa and chocolate.

Target Establishments for Wholesale and Retailers. Magic Mall Mangaldan Quezon Highway, Mangaldan Pangasinan

CSI Mall Mangaldan Mangaldan, Pangasinan

CSI City Mall Dagupan Market Square, Dagupan City, Pangasinan

CSI Mall Dagupan Judge Jose de Venecia Extn., Lucao District, Dagupan City, Pangasinan Nepo Mall Dagupan 958 Arellano, Daguapan City, Pangasinan

City Mall Mayombo Mayombo District, Dagupan City, Pangasinan

SM Center Dagupan City 167 M.H Del Pilar Street, Dagupan City. Pangasinan

Robinson Place Pangasinan McArthur Highway, Brgy. San Miguel, Calasiao, Pangasinan

Competitors Universal Robina GracePoint Enterprise (LALA) Annie Candy Manufacturing New Unity Sweets Manufacturing Corporation Monde Nissin Stateline Snack Food Corporation Columbia Multirich Foods Corporation Nestle Hershey’s Cadbury

Target Market/Marketing Segmentation Our target market would be the children and young generation as chocolate is mostly liked by children and youngsters.

Marketing Strategy for our Target Market  Attractive in packing, our company will focus on packaging to attract children  Good quality and healthy chocolates are the factors on which marketing will be done.

Promotion:       

Local Newspaper Local TV Channel Local Radio Station Social Media Sites, FACEBOOK,TWITTER, YOUTUBE Advertising through almost 200 social networking sites. Tarpaulin Flyers

Distribution Channels Our products would be distributed through channels like wholesalers, retailers and our own sales force.

Suppliers For milk Powder Guangdong Wingoo Anime Foods Corporation Ltd. Rain Shen website: m.alibaba.com Liquid Stevia sweetener or Granulated Stevia Foodchem International Corporation CN Manufacturer Trading Company website: m.alibaba.com Butter, Vegetable Fat, Vegetable oil Oleo Fats incorporated Contact: +6327096536 +6326350680 local 500 website: [email protected] Milk Powder, Whole Milk Powder, Skimmed Milk Powder, Dairy, Whitener, Butter AA-1 Intertrade Ltd.Co website: go4worldbusiness.com Cocoa powder and Soya Leicithin Beijing Zhonghengweiye Food Technology Co. Ltd Joanna Zhang website: m.alibaba.com

Operational Plan The product will be manufactured by Full Automatic Production Line, with this system, baking the moulds, depositing, forming, etc. series procedure can be achieved automatically. It’s available to depositing all shape of chocolate. Such as double color filled inside, nuts etc. chocolate. Since our products are plain as well as nuts are added this machine appropriate. This machine can produce 100-300kg chocolate per hour. It can produce chocolate in different shapes. It can help reduce cost of chocolate mould. By Producing Chocolates in different shapes we can attract segment of market. The production capacity is fully assumed as mentioned above, so the number of personnel is comparative less, than other semi-automatic machine.

Manufacturing Process Chocolate production is highly sophisticated computer controlled process with much of the new specialist machinery. Machine like as chocolate cooling tunnels, enrobing machines, coating machines, moulding machines.

Chocolate Processing

Production Flow of Chocolate

Cleaning When seeds arrive to factory they are carefully selected and cleaned by passing through a bean cleaning machine that removes extraneous materials. Different bean varieties are blended to produce the typical flavor of chocolate of particular producer. Then the bean shells are cracked and removed. Crushed cocoa beans are called nibs.

Roasting The beans are then roasted to develop the characteristic chocolate flavor of the bean in large rotary cylinder. The roasting lasts from 30 minutes to 2 hours at very high temperature. The bean color changes to a rich brown and the aroma of chocolate comes through.

Grinding The roasted nibs are milled through a process that liquefies the cocoa butter in the nibs and forms cocoa mass (or paste). This liquid mass has dark brown color, typical strong smell and flavor and contain about 54% of cocoa butter.

Cocoa Pressing Part of cocoa mass is fed into the cocoa press which hydraulically squeezes a portion of the cocoa butter from the cocoa mass leaving “cocoa cakes”. The cocoa butter is used in the manufacturer of chocolates: the remaining cakes of cocoa solids are pulverized into cocoa powder.

Mixing and Refining Ingredients like cocoa mass, liquid stevia sweetener or granulated stevia, cocoa butter, flavoring and powdered or condensed milk for sugar-free milk chocolate are blended in mixers to a paste with the consistency of dough for refining. Chocolate refines, a set of rollers, crush the paste into flakes that are significantly reduced in size. This step is critical in determining how smooth chocolate is when eaten.

Conching

Conching is a flavor development process during which the chocolate is put under constant agitation. The conching machines called “conches” have large paddles that sweep back and forth through the refined chocolate mass anywhere from a few hours to several days. Conching reduces moisture, drives off any lingering acidic flavors and coats each particle of chocolate with a layer of cocoa butter. The resulting chocolate has a smoother, mellower flavor.

Tempering and Moulding The chocolate then undergoes a tempering melting and cooling process that creates small, stable cocoa butter crystals in the fluid chocolate mass and is deposited into moulds of different forms. Properly tempered chocolate will result in a finished product that has a glossy, smooth appearance.

Cooling The moulded chocolate enters controlled cooling tunnels to solidify the pieces. Depending on the size of the chocolate pieces, the cooling cycle takes between 20 minutes to two hours. From the cooling tunnels, the chocolate is packaged for delivery to retailers/wholesalers and ultimately into the hands of consumers.

Production Process (line order)

Cleaning

Roasting

Grinding

Cocoa Pressing

Mixing and Refining

Conching

Tempering and Moulding

Cooling

Wrapping or Packaging