Executive Summary

XL Patisserie is a bakeshop that offers a different variety of cupcakes and cakes. Its banner product is
cupcakes that are in with the trend of all ages. It will be owned by partners Joel and Princess. The goal of
XL’s Patisserie is to deliver an elegant experience to consumers through a sophisticated environment and
signature product. XLs Patisserie will be a small entrepreneurial bakeshop located in Brgy. 59, Picas,
Sagkahan, Tacloban City. Freshly baked cupcakes and cakes will be offered with a variety of flavors,
frosting's, sizes, styles, toppings, and decorations. This bakeshop will contain a comfortable seating area,
allowing customers to stop in and sit down. XL’s Patisserie will also include a catering service to deliver
large orders for big events, providing greater convenience for consumers. As a bakery, XL’s Patisserie will
have an extensive target market. People of all ages enjoy delicious cakes and cupcakes, and will therefore be
included in the target market.

Product quality is critical in the food industry. For that reason, XL’s Patisserie will ensure product
quality through the use of fresh ingredients, sale of only fresh breads and cupcakes, and a focus on
cleanliness. Innovations are also a goal of the company. One way which this will be accomplished is through
creating new flavors of cakes and cupcakes with frosting’s each month and offering them for a limited time.
This will allow the business to test new products and determine which ones are preferred by consumers.
Similarly, XL’s Patisserie will provide seasonal cakes and cupcakes with flavors corresponding to the
monthly occasions and seasons. These treats will also only be available for a limited time each year.

Product quality and innovations will be a major focus of the business. Though XL’s Patisserie will open
as a single, small bakery, over time the business will strive to expand. Once the bakery proves to be a
success, the business will open more stores in areas nearby the original. As the success of the overall
business increases, XL’s Patisserie will slowly expand to a wider range of locations. A company website or
Official Facebook account will allow consumers to view everything offered by the bakeshop, as well as grant
the option for customers to place orders.

These expansions will allow XL’s Patisserie to be accessed by a larger quantity of consumers. Prices at
XL’s Patisserie will strive to be competitive with the industry. Costs and expenses will be calculated to
provide the business with a minimum price option, preventing any losses. The business will also research
the prices of comparable products of other similar businesses in the area to know the price requirements to
remain competitive. As long as the industry prices are high enough to cover the calculated costs, XL’s
Patisserie will choose prices similar to its competitors.

When XL’s Patisserie first opens, it will host a grand opening to gain consumer awareness. The event
will offer free samples of a variety of products offered by the bakeshop to achieve consumer interest and
desire, which in turn will increase consumer purchases.

Community involvement will also greatly promote XL’s Patisserie as the bakeshop shows its
participation and intent to contribute to the community. Such involvement will also increase consumer
awareness as community members are frequently exposed to the business name.

These plans for XL’s Patisserie are intended to help the business grow more successful and profitable.
However, through the use of financial analysis, customer surveys, and market share comparisons, the
business will be capable of determining which of these strategies truly are productive to help the business
thrive. Evaluating the effectiveness of different methods of marketing, XL’s Patisserie will learn what is
needed for the company to be an absolute success.

According to 2013 Annual Survey of the Philippine Business and Industry, Baked goods

II. Current Marketing Situation

Market Description

XLs Patisserie is a privately owned business of partners Joel and Princess that will be a bakeshop
revolving around providing joy and comfort to its customers. Our target market is households with an
income of P 10, 000.00 and above. We attract our clientele by providing value, signature products, and
elegant atmosphere individuals.

In a bulk order for catering services, XLs Patisserie will allow costumers/clients to have its free
taste test prior to purchase. XLs Patisserie will not only offers cakes and cupcakes but also trend setting of
different variety of its products.

The atmosphere of XLs Patisserie revolves around elegance. The bakeshop will provide a sense of
self-esteem to our customers. The bakeshop color scheme is based on an earthly color. It will also have
subtle music playing in the background.

Product Performance

The cupcake business all over the country is booming, and customers have shown that they
are willing to pay for delicious cupcakes made with quality ingredients in traditional and  experimental
flavors.

The cupcake business operates on a business model similar to a bakery in terms of production and
product turnaround. The cupcake business, however, targets specific niches and requires a focused
approach to sales. Setting marketing and sales goals that will drive revenue and that will encourage
repeat business will set the stage for a successful business.

Cupcake is a small cake that is baked in small thin paper or aluminum cup and designed in different
unique designs to serve just one person. Aside from the fact that it is a small cake, it still contains icing,
candy or all other decoration that can be found in traditional big cakes.

The 2013 Annual Survey of Philippine Business and Industry from the Philippine Statistics Authority show
that pastry business ranked second in all the Manufacturing Establishment. Many entrepreneur invest in
this business as shown below.

Competition

Competition in the local area is somewhat sparse and does not provide nearly the level of product
quality and customer service as XLs Patisserie. Local customers are looking for a high quality product in a
relaxing atmosphere. They desire a unique, classy experience.
Name Of Bakeshop Address Slogan Logo

Miyara Cake Patisserie 222 Burgos St. For the Love of Craft and
Downtown, Tacloban Sweet
City

CUPCAKES. TEA. BURGERS.

K Patisserie Brgy. Paterno, St. PASTA. MEALS. SKAES
Downtown Area,
Tacloban City

Amiel Cake Shop V. Mapa Street,

Corner Senator
Enage Street,
Downtown, Tacloban
City
Love at First Bite Kassel City, Tacloban

Sweet Glaze Patisserie Located in Number

Co. 17, Downtown,
Tacloban, Hilagang
Leyte

Distribution

XL’s Patisserie will be the only cupcake shop in Brgy. 59, Picas, Sagkahan Tacloban City, other bakeries
and cake decorating businesses will offer competition. A couple of other bakeries and cake decorators also
exist in the neighboring areas too.

Despite the similar businesses in the area, XL’s Patisserie will contain a few beneficial strengths to
make it more desirable than its competitors. XL’s Patisserie will be capable of meeting the needs of
consumers requesting specific modifications to satisfy particular health and diet needs, including gluten-
free, organic, naturally sweetened, reduced‐fat, and vegan. The central location of XL’s Patisserie will be an
additional valuable aspect of the business, allowing it to be accessible to a large market. Finally, the
convenient catering service and the comfortable lounge for customers to relax in as they indulge in their
delicious delights will be major advantages of XL’s Patisserie.

Part of the target market of XL’s Patisserie includes tourists. Unfortunately, these consumers are only
present during part of the year, decreasing the bakeshops business during the off seasons. Another
weakness of this bakery will possibly include its competition with businesses which have been open for
many years. Locals often choose to support the local businesses. With these habits created, it may be
difficult for XL’s Patisserie to receive the business of locals who already have a favorite or preferred bakery.

The growth of XL’s Patisserie may be limited based on the location of the business.

Located in the area away from the City proper, the market size is much lower than if the business were
located in the Center of Tacloban. However, the growing cupcake trend is very promising for the success of
XL’s Patisserie.

III. Threats and Opportunity Analysis

XLs Patisserie Opportunities and Threats
Possible Opportunities Possible Threats

 Increasing demand for cupcakes during  Growing cost of employee benefits,

any occasion per data. which contributes to increased product
 Growing interest in healthy and organic price.
product. 
 Acceptance of the internet as a
marketing and customer service
medium.

Economy – Because of the fluctuating prices, any good that is seasonal, coming in abundance during some
months and becoming rare in other months. As it turns, out, this exactly the nature of many raw materials
that are used in baking. They tend to experience fluctuations from one season to next. Price Fluctuations can
have serious consequences for the bottom line of a bakeshop and sometimes the bakeries are forced to pass
some of those costs on the consumers.

Market- Per data gathered, the report is targeted towards bakers, chefs, restaurant owners, confectionery
producers and grocery store suppliers. The Cupcake Trend Report will also supply plenty of fresh ideas and
inspiration to party planners, dessert bloggers and holiday event organizers who want to stay on the cutting
edge. The Cupcake Trend Report brings together examples of cake and icing flavors, colors and designs
popular with children and adults for food brands and party planners.

Competition-

Political and Social Issues- In the Philippines there a high number of legislations needed for setting up a
business that sells foodstuff, for example Health Certificate and Quality Control procedures, there are also
workplace legislations. These legislations will contribute largely to the upfront costs of the business and to
ongoing renewal costs; however these expenses must be covered as the consequences for not doing so,
greatly outweigh the compliance costs.

Climate- Climate may also affect the businesses operations. Generally if bad weather is expected, customers
are more reluctant to visit business establishment specifically those who are not part of the essential needs
of a family. This may cause problems for the business in having “off days” during seasons of bad weather or
during typhoon.

IV. Objectives:

Mission: XLs Patisserie aims to be a high quality bakeshop that offers a world class product at a
competitive price to meet the demand of the consumers.

Marketing Objectives:

1. To provide good quality of products.

2. To help jobless individuals by providing jobs.

3. To be a competitive bakeshop in the market.

Financial Objectives:

1. To become a zero-debt bakeshop.

2. To generate a minimum of 30% revenue.

V. Market Strategies

In order to get long term and very harmonious relationship with our clients and customers, XLs
Patisserie can offer discount to bulk or large order and will provide a variety of products. High quality baked
products at a competitive price to meet the demand of the customers. Free delivery will also be provided
for bulk orders. The bakeshop will also provide free Wi-Fi and television for entertainment.

Target Market

The dominant target of XL’s Patisserie will be its local residents and will have a broad target market.
People of all ages, children through adults, enjoy delicious treats, and therefore will be incorporated in the
target market. This product is not a high-priced item and, as a result, will be available to nearly all people
regardless of varying incomes. The catering service will be especially utilized by locals for large events and
celebrations. XL’s Patisserie will be able to rely on locals for more year‐round business whereas the tourists
will only frequent during the summer and winter months.

When it comes to retailing cupcakes, there is indeed a wide range of available customers, In essence,
the target market can’t be restricted to just a group of people, but all those who love cupcakes and those
who would want to try it out to engage in wholesale distribution and to retail a wide range of cupcake
flavors to the following group of people:

 School Children
 International and Local Tourists
 Corporate Organizations
 Families / Households in and around the neighbourhood
 Churches and other religious centres
 Campuses
 Parks
 Event Planners and Wedding Planners
 Everyone who resides in our target locations.

Market Differentiation

Consumer Behaviors

What drives a consumer to buy and continue to buy a baked good? Whether it be taste, texture, or
flavor profile, its paramount that you distinguish your product in one if not all of these areas. Product
differentiation is a marketing strategy that requires bakeries to distinguish their baked goods from
the competition. To be successful, differentiation requires making your sweet bakery product unique
from your competition. Product differentiation will create a competitive advantage by building a
unique brand identity through the unique product.

Research has shown that food cravings can be caused by endorphins that are released into the body
after someone has eaten a particular food. If a consumer experiences a “feel good” feeling or “high”
after eating a certain food, they are likely to consume it more regularly. This has been observed to be
the case in foods that are high in sugar and fat. Emotions are also known to trigger eating, specifically
in times of economic downturn or uncertainty. Products like donuts, chocolate, cakes, etc., have been
seen to rise due to their high levels of fat and sugar and the “comforting” feeling they’ve been known
to provide.

Customization

Sweet bakery goods product differentiation can be packaging, size, name, shape, texture and flavor.
The most important factor is creating a unique product that has a unique texture and flavor.
Consumers buy baked goods for decadent flavors and textures and flavors to satisfy their cravings. It
is highly desirable to have the consumer crave your differentiated flavor and texture. Standing out in
the market is a good thing.

Shortening and Sugar

There are many ways to differentiate a sweet goods bakery formula. Our concentrates provide you
with the highly functional ingredients like gums and emulsifiers, all while providing you with the
flexibility to customize your commodity ingredients. Looking for a richer formula? Add larger
amounts of fat and sugar to our donut concentrates. Changing the type of fat used will also produce a
different end product, which is another way bakeries can differentiate via formulation. Using lard vs
butter in your formulation will ultimately yield a different product flavor profile, which allows you to
differentiate from your competitors. The same is true for which fat you fry in, soybean, tallow, or
palm.

Flour

There are multiple types of flours bakeries can use to alter their formulation and end product.
Different types of flours can yield different finished bakery product textures. Stronger flours (Hard
Red Spring, Hard Red Winter) are usually used in pressure cut donut systems or in other products
that may endure more rigorous processing. Using whole wheat or white whole wheat flours will alter
the nutritional value of your finished product as well as color, in products such as bread. Potato flour
and rice flour can be used to avoid using allergens in your bakery formulations.

Flavor Profile

Adding different flavorings and spices can also help bakeries differentiate from their competitors. As
we enter into the cooler months, flavors like Pumpkin spice, apple cider, or Fall spice are simple
variations that will attract customers to your product. Customers will seek out your product on the
shelf if they prefer your specific flavor profile. Add different flavors and spices to the dough or your
icing or glaze. The flavor of different fruit purees and fruit fillings in Danish are also an area where
differentiation is possible. Who is your target customer and what is their preferences? Del-Val Food
Ingredients offers several fruit fillings including lemon, raspberry, and Bavarian, which give the
bakery the ability to adjust the level of sugar. This allows you to exercise control over your
formulations, and adjust according to your demographic and customer base.

Del-Val Bakery Concentrate Systems

With a concentrate it is easy to manipulate these factors and many more. It is much easier to
differentiate your finished baked good when using a concentrate than a mix. Our concentrates allow
you to select the type of flour, the type and the amount of sugar (white sugar, brown sugar, honey,
etc.), the amount and type of fat (palm, lard, tallow, butter, soy oil, canola oil), adjuncts, and flavors.
One concentrate can make thousands of unique profiles in an easy to use powdered form.
Concentrates are the perfect midpoint between scratch baking and utilizing a mix. Our concentrates
allow you to obtain the uniqueness that is needed in today’s market, while making it easy to use the
latest technologies in emulsification and gum technologies. Why use the same mix and make the same
product as everyone else? Contact us to learn more about our bakery concentrates today.

Del-Val Food Ingredients is a specialty ingredient supplier. We offer a range of customizable bakery
concentrate systems, including yeast raised donut (pressure cut and table cut), honey bun
concentrate, bakery fruit fillings, brownie and cookie concentrate, crè me cake concentrate, and
multiple glaze stabilizers which extend bakery product shelf life.

Market Positioning

For Customers and clients, XLs Patisserie position itself as a competent, innovative and customer
oriented bakeshop. It will provide sophistication because of its unique and competitive signature product
for a cheaper price. And because of this, customers are guaranteed with satisfaction.
Atmospheric Health Orientation Design
Key Benefit XLs Patisserie will Clients will be able to Clients will be provided
provide elegance and enjoy the products with a world class
satisfaction without the risk to their product that are unique
health.
Key Features Elegant displays and Gluten-free, low trans- XLs Patisserie will offer
plating will be observed fat and fresh fruit will be fresh fruit, signature
 featured. products and will utilize
the capabilities of the
expert bakers.

Market Mix Strategy

Cupcakes are the key product of XL’s Patisserie, and product quality is essential for the success of
the business. In order to ensure product quality, this bakeshop will emphasize cleanliness and sanitation,
use quality ingredients, and will always be sure all cupcakes are properly baked. Innovations are also an
important factor in the growth and success of the bakeshop. This bakery will start by offering a variety of
options, from simple flavors like chocolate and vanilla, to more decadent ones such as red velvet and
German chocolate cake as well as different kinds of frostings, and numerous decoration styles for all types
of occasions.

However, to grow as a business, it is important for XL’s Patisserie to innovate their product. To do so,
the bakery will continually work to develop and test new recipes for new flavors of cupcakes and icings.
Doing so will allow the company to have more variety to offer and possibly attract new customers. Along
with this, XL’s Patisserie will create a couple of seasonal cupcakes, such as love cupcakes during the month
of February or any other cupcakes that will represent summer, which will only be available during certain
times of the year. Doing this will give consumers something to look forward to in upcoming months, as well
as increase business as customers splurge on cupcakes they enjoy that are only around for a limited time. By
creating new product flavors, XL’s Patisserie will not only grow as a business, but will also increase sales.
The products of XLs Patisserie will stand out from the competition because of its presentation and use of
eye catching colour.

Product Description’

XL’s Patisserie will be a small bakery located in Brgy. 59, Picas, Sagkahan, Tacloban City. It will offer
all things of cakes and cupcakes. The business will be entrepreneurial with enough employees to help the
business run smoothly. A couple of employees will be designated bakers, preparing the delights in the
kitchen, while the remaining employees take orders and fulfill the needs of customers.

The product of focus for this business will be cupcakes. A variety of flavors, frosting's, sizes, styles,
toppings, and decorations will all be available at XL’s Patisserie. To rise above competitors, XL’s Patisserie
will offer numerous options to satisfy common health and diet needs of consumers. Whether it is required
by allergies or simply a choice, a desire for gluten-free, organic, naturally sweetened, reduced‐fat and vegan
foods has recently grown. By offering breads and cupcakes which meet these requests, more consumers will
feel welcome to this bakery because their needs will be recognized and satisfied.

The bakery will contain a comfortable lounge area open to customers, allowing them to stop in and sit
down. XL’s Patisserie will also provide a catering service designated for deliveries of large orders for events
such as birthdays and weddings. This service will provide significant convenience for customers. The
location of XL’s Patisserie will be another advantage of the company. The business will work out of a store
front on the area’s main street, making it extremely visible for all consumers. Being located in Brgy. 59,
Picas, Tacloban City, XL’s Patisserie will be easily accessible by all members of the area. Given the varieties
of breads and cupcakes, convenience, and accessibility, XL’s Patisserie will be capable of standing above its
competitors.

Price:

After XL’s Patisserie first opens, its key objectives will include strong market share, survival, and
return on investments. Achieving these aspirations will eventually allow the business to become profitable.
Keeping these goals in mind, the company will choose prices which are competitive with the industry. Doing
so will help XL’s Patisserie stay in business with prices that are not high over competitors, which would
likely turn customers away. Yet by not being immensely below the market price, the business will still be
able to receive as much possible income while remaining competitive. As these prices result in the strong
market share and survival of XL’s Patisserie, the company will then be able to use income to pay returns on
investments, and in time, receive profits.
 Place:

XL’s Patisserie will open as a single bakery, along with a catering service, in the town of Granby,
Colorado, the heart of Grand County. Although the company is beginning as a little bakery in a small town,
the objective of the business is to continually grow. In order to do this, the company will slowly open more
of the same bakeries starting in nearby towns, and gradually expand to larger areas. Likewise, the catering
service will grow as more bakeries are opened and perhaps the ability to cater multiple events at one time
will be reached.

The internet is an extremely efficient way to expand the business to a wider range of areas; therefore,
XL’s Patisserie will develop a website on which customers can place orders. Customers will then pick up
their order at a nearby bakery, or, if they are not located near one, XL’s Patisserie will find an appropriate
way to safely ship the cupcakes. Doing so will not only increase the number of consumers that will be able to
access the business, but will also allow XL’s Patisserie to determine appropriate locations for opening more
successful bakeries, based on the areas from which the most orders are placed.

Promotion:

Bakery business especially products like cupcakes might not necessarily need huge budget for
publicity and advertisement. As a matter of fact if you the packaging of your bakery products are cool and
the quality and quantity is in order, you wouldn’t struggle to sell your products.

Here is the platforms XLs Patisserie intend making use of to promote and advertise our business;

 Place adverts on both print and electronic media platforms

 Sponsor relevant community programs
 Leverage on the internet and social media platforms like; Instagram, Facebook , etc.
 Install our Bill Boards on strategic locations
 Engage in road shows from time to time
 Distribute our fliers and handbills to targeted areas from time to time

Promotion objectives of XL’s Patisserie will consist of creating consumer awareness, generating
interest and desire, and moving the customer to make the purchase. Strategies for making consumers aware
of the bakery will include advertising and hosting a grand opening. Offering free samples of the tasty treats
at the grand opening may lead to both consumer interest and desire. As customers try the delicious delights,
they will be less hesitant about making a purchase. By simply building customer awareness, interest, and
desire, consumer purchases will increase, raising company sales.

Community involvement will be an extremely valuable method of addressing this. Doing so will not
only help XL’s Patisserie receive more business from locals, but will also increase the company’s chance of
referrals in the community. A few ways XL’s Patisserie will utilize public relations is through community
involvement such as taking part in community activities, sponsoring local events, or donating gift
certificates or baked goods for fundraisers. This will show the company’s desire to be involved and help out
the community, which is extremely appealing to community members. It will also provide positive exposure
for the company. Public relations will be essential for XL’s Patisserie to be successful.

VI. Profit and Loss to forecast the expected outcome of the plan.