Corn Coffee Essay

Corn ranks second to rice, not only in terms of area devoted to its production but it has been a staple food of about 20% of the total population of the Filipinos. Aside from this, the green corn, boiled or roasted, is a popular snack food and may also be cooked a vegetable or soup. Other by-products of corn include corn flour and syrup, sugar and oil. In terms of nutritive value, corn is richer source of vitamin A than polished rice. It contains high amounts of minerals such as calcium and phosphorous. Moreover, it is also a source of starch derivatives for oil, fibers and other industrial uses. Corn is raised as source of food and food products for people, livestock feed, and industrial products including ceramics, explosives, construction materials, metal molds, paints, paper goods, textiles, industrial alcohols, and ethanol. Corn is now also used to produce a healthy coffee as people nowadays are health conscious. Since corn coffee was introduced in the Manila market by the farmers of Sumilao, Bukidnon, further study about corn coffee in Region III (Central Luzon) was made since corn is abundant on the said region. Distribution of questionnaires and analysis activities conducted to determine the frequency distribution of corn coffee in the market because this is not the first to introduce corn coffee in the Philippine market especially in Manila. On the data gathered, 98% of the respondents are coffee drinkers, majority of them are young professionals, 91% of them have no knowledge about corn coffee, 88% are willing to try corn coffee and 22% have no idea what would corn coffee would taste like. With this data, Le Maiz come up on marketing strategies how to introduce and expand the corn coffee market in Region III and NCR. Corn Cafe is an alternative to coffee beans that is rich in nutrients that coffee beans can not provide. The company’s objective is to fit in and adapt to the people’s taste and preferences as well as offering diverse kinds of nutritious products. Effective marketing program and strategy would be made in order to meet the established objective. The marketing strategies will consist of flyers, radio and newspaper advertisements, trade fairs, vis-a-vis contact with customers. 10% of the gross sale will be allocated on marketing the product. On technical aspect, the production of corn coffee is simple, healthy and all natural that it has only one ingredient, which is the corn alone, no additives and a healthy alternative of drinking coffee. Preparation of corn before roasting is the first step in making our product, roasting, grinding/ pulverizing are the main activities in making corn coffee. Packaging and putting into the storage were done before putting on the distribution channel like our selling area, inner-retail coffee stands as well as supermarkets within our designated market. On this study, corn coffee production started January 2011. Corn was purchased at the average of Php15 per kilo. The sum of 15,600 kilograms of Corn were purchased during 2011 while on 2012 to 2015, 12,480 kilograms of corn were purchased. Also, part of Raw Materials inventories are Packaging Slip and Sticker. 60,000 pcs. were purchased respectively. Around 1% has incurred in transportation cost and other miscellaneous expense. Purchases Return and Allowances is expected to be 1% of Gross Purchases while Purchase Discount will be 2% Net of Freight In. The production of coffee is continuous process thus leaving no goods in progress beginning or ending. This is in line with company’s policy to keep the product fresh and all natural. Sales Return and Allowances is expected to be 1% of Gross Sales. Sales Discount of 2% is given to cash buyers but only 5% of Gross Sales will avail the discount. Operating expenses is divided into 2 category; Distribution Cost and Administrative Cost. For Distribution cost for 2011( % of Gross Sales ); Traveling 1%, Advertising 5%, Delivery 10% and Depreciation expense based on Straight Line Depreciation of 5yrs. For Administrative cost ( % of Gross Sales ); Officers’ Salaries, 3 partners assumed as managing partners with annual salary of 96,000. 00 each. The Pre-operating cost Php 9,454. 00 has been incurred which include DTI registration, Dole registration, BIR Fee, SSS registration, Police Clearance, Barangay Clearance and Business Permit issued by Tarlac City Hall. Office supplies is 10%, Depreciation Expense ( Straight Line Depreciation of 5 yrs. ), Lease Payment ( 40% to Administration ), other expenses is 1%. On socio-economic aspect, we have shown the significance of our business and its contributions to the society. Its share to community and to its people is to create employment and thus improving the standard of living of people in the community. It can also help the community development by way of paying taxes in the government. It is through taxes paid by businesses and individuals that the government funded its projects such as roads, bridges, and community development. Lowering of prices of competitors to compete with the product in order to maintain the customers. We could also help the people in community by utilizing local materials which is very abundant in the province. We can motivate farmers to grow corn and not just corn but corn of good quality. Our business can be the pride of our province since it’s inclined with the program of the Department of Trade and Industry which is the â€Å"One Town One Product†. Lastly, the Le Maiz proponents chose partnership as the form of organization. Aside from the six (6) partners, we will be hiring three (3) employees to help to produce and market the healthy and nutritious coffee. Le Maiz with a mission, to provide coffee drinkers quality products, quality service, affordable prices and a healthy lifestyle. Competent and responsible employees will be hired for the success of the company. The company shall also continue working for innovative and efficient ways of achieving the company’s goals. The company’s vision are to be number one (1) corn coffee in the Philippines; to expand not only in Central Luzon and NCR but throughout the country as well; to build own production and distribution facilities and to adopt new technologies and methodologies. The company decided a hierarchical type of organizational chart. The capitalist partners will act as the general manager and three of the six (6) partners will be managing partners whom will receive monthly salary as well as the three (3) employees. On Administrative Department, the Administrative Officer/ Purchasing Officer will be the crucial person in the organization, he assumes the full control on the organization’s activities and is responsible for all decisions undertaken by the organization, responsible in monitoring and managing the production of corn coffee, counter checks the financial position of the organization, handles all personnel and the daily business activities, purchase ordered and will deliver on time to the production area and hold the budget for purchases of raw materials and shall provide summary or report of the used and unused funds. On Sales Department, the Marketing Officer/ Salesperson is responsible for the all related selling activities, product development, packaging, proposes new ideas for improvement and replacement, communicating with suppliers of materials and know the current trend in the market. For the Inventory Officer, he is responsible in listing down sales, the used materials and finished products. Must be alert, with good communication skills, trustworthy and diligent. The three (3) employees that will work for the company were the Machine Operator, responsible on the control of the machine in producing corn coffee, Packager, for packaging of the finished products and Delivery Man, he will act as the driver and responsible in delivering the finished products to our target markets.