Jokjok Internet Cafe

Jokjok’s Internet Cafe A Feasibility Study In Marketing Management By: Felix T. Acosta Jr. Marketing Aspect Service Marketability The Internet-services side of the business is rapidly being accepted by the local communities. Students love to gather for late-night sessions, nearby seniors are getting a glimpse of what the Internet offers, and local business people enjoy stopping by for a quick bite to eat while checking their emails. Because of this, demand for internet service has grown tremendously. Market Analysis Internet Service nowadays plays an increasing role in bringing education at the utmost. In fact, most universities and colleges use internet for their research and references. No wonder this business is one of the income generating types of commerce. Definitely, competition is very high as well as the demand. It is very evident that there is a rapid growth in the population nowadays. Not to mention, most of these students really make use of the modern technologies like computers as a part of their daily system. However, despite of the emerging internet café business, there are still some students unaccomodated. Obviously there is shortage in supply of internet service. That is where jokjok’s internet café comes possible. This business will cater to consumer’s preferences to prices and other services as well as accommodate them giving them good costumer service. Target Market Jokjok’s internet cafe intends to cater both to people who want a guided tour of the Internet and to experienced users eager to indulge their passion for computers in a social setting. Furthermore, Jokjok’s Internet Cafe will be a magnet for local and traveling professionals who desire to work or check their email messages in a friendly atmosphere. These professionals will either use Jokjok’s Internet café’s PCs, or plug their own notebook computers into Internet connections. Jokjok’s internet cafe target market covers a wide range of ages: from members of “Generation X,” who grew up surrounded by computers, to seniors from local retirement centers. Our primary target markets include: • Students.

The large student population will become an important part of the Jokjok’s internet cafe customer base. The student population continues to grow at most universities. Evening entertainment, access to the Internet, and the upscale ambiance will be attractive to this demographic group. • Business people. Downtown business communities are the areas in which Jokjok’s internet cafe is located. With further expansion into these parts of new cities, there will be access to additional professional centers. Jokjok’s internet cafe provides a perfect setting for business meetings. It also offers traveling business people the opportunity to plug personal laptops into the Jokjok’s internet cafe network to check email communications or conduct Internet business with their customers or home office. • Seniors This group represents a growing segment of Internet users. Jokjok’s internet cafe will target the seniors in nearby retirement centers by offering “Introduction to the Internet” classes. The Jokjok’s internet cafe staff will hold brief classes in the off hours to educate seniors on how to use the Internet to communicate with friends and family. This should build a regular base of customers who wouldn’t ordinarily use the services offered by Jokjok’s internet cafe. Marketing Strategies There are 3 marketing strategies for Jokjok’s Internet Café Jokjok’s Internet Cafe first strategy focuses on attracting novice Internet users. Jokjok’s Internet Cafe plans on attracting these customers by: • Providing a novice-friendly environment. Jokjok’s Internet Cafe will be staffed by knowledgeable employees focused on serving the customer’s needs. • A customer service desk will always be manned. If a customer has any type of question or concern, a Jokjok’s Internet Cafe employee will always be available to assist. • Jokjok’s Internet Cafe will offer introductory classes on the Internet and email. These classes will be designed to help novice users familiarize themselves with these key tools and other computer systems. Jokjok’s Internet Cafe second strategy will be focused on attracting power Internet users who will provide an important function at Jokjok’s Internet Café. Jokjok’s Internet Cafe plans on attracting this type of customer by providing: • The latest in computing technology. • Scanning and printing services. • Access to powerful software applications. The third strategy focuses on building a social environment for Jokjok’s Internet Cafe customers.

A social environment that features entertainment serves to attract customers who wouldn’t normally think about using the Internet. Once on location at Jokjok’s Internet Cafe, the customers who came to enjoy more standard entertainment offerings will soon realize the potential entertainment value of the Internet. Pricing Structure Internet and Computer Access For casual customers, a price of P15 an hour is charged. For printing Black and White (laser) P5.00/page; Colour P5.00/page; Photo Printing P10.00/print CD/DVD Burning is charged P20.00

Technical Aspect Project Description Jokjok’s internet café is a place where one can use a computer with Internetaccess, most for a fee, usually per hour or minute; it also provides other services like printing, CD/DVD burning and photocopying. It may serve as a regular café as well, with food and drinks being served. Location Sta. Ana Avenue in Davao City will be the best location for Jokjok’s Internet Café. It is located at the façade building of San Pedro College near the Baptist church. The place has been a center of three schools namely: Holy Cross of Davao College, San Pedro College and the Chinese School. Because of the visibility of the place, this will add convenience for the targeted market encouraging more customers to drop by at Jokjok’s Internet Café. Vicinity Map

Equipment Requirements Hardware needed 1. 20 x Client PCs 2. 1 x PC Server 3. 1 x 24 ports 5. 1 x Printer 6. 1 x Scanner

Furniture and Fixtures 1. 20 clients’ chairs 2. 20 computer tables 4. 1 x Modem

Appliances 1. 2 Air Conditioner 1.5 HP 2. 1 Coffee Heater 3. 1 Mini Refrigerator

Floor Plan

Manpower Requirement 

Skilled

These positions require an adept people who will contribute their knowledge for the success of operation of jokjok’s internet café. Below is the list of positions under the skilled category.



1 manager and 2 computer technicians



Semi- Skilled

This category entails people who have the capacity to help in the business operation of the Jokjok internet café. They must have at least a good educational background in able to fulfill these positions. 

1 cashier and 1 security guard



Unskilled

This category involves positions that will support the business activity of Jokjok’s Internet café. It does not require much of educational background as long as they can perform their work. 

3 service staffs and 1 janitor

Form of Organization This business will be a sole proprietorship type of business. An individual proprietor who owns and manages the business and is responsible for all business transactions. The owner is also personally responsible for all debts and liabilities incurred by the business. A sole proprietor can own the business for any duration of time and sell it when he or she sees fit. As owner, a sole proprietor can even pass a business down to his or her heirs. In this type of business, there are no specific business taxes paid by the company. The owner pays taxes on income from the business as part of his or her personal income tax payments. Advantages of this type of business are the sole proprietor has complete control and decisionmaking power over the business; sale or transfer can take place at the discretion of the sole proprietor; no corporate tax payments minimal legal costs to forming a sole proprietorship; and few formal business requirements. Organizational Structure

Felix T. Acosta Jr.CEO/ Owner Manager Computer Technician Cashier

Service Staffs Security Personnel\ Security Guard

Qualification and Functions of Manpower

Positions Manager

Qualifications      

Cashier

  

Service Staffs

   

Functions

Age 25-30 years old, Male/ Female business or marketing-related degree or equivalent professional qualification experience in all aspects of developing and maintaining marketing strategies technical marketing skills proven experience in customer and market research experience with relevant software applications



18- 23 years old, Male/Female Must be at least a college level preferably business related courses With experience as a cashier for at least 6 months

    

Accepts payments, Makes change, Provides information, Fills out forms and Provides receipts for goods and services.

18-25 years old, Male Must be at least a college level With pleasing personality Computer savvy



Supports the customer needs at all times. Attentive to the requests and complains of customers as well as Helps in maintaining

 







Monitors, reviews and reports on all marketing activity and results Determines and manage the marketing budget Delivers marketing activity within agreed budget Develops pricing strategy

cleanliness and orderliness of the place.

Computer Technician

    

23-30 years old, Male/Female College graduate preferably computer related courses Extensive and diversified Information. Technology experienced. In-depth knowledge on troubleshooting. Strong communication and interpersonal skills.









Tests and installs computers hardware systems, Connects PCs in a network and sets up peripheral equipment, hardware components and allied devices., Checks performancerelated issues and network support problems, Responds to complaints and queries, provides technical advice, and solves employees’ technical problems by phone or in person.

Security Guard

  

18-30 years old, Male 1 year experience as a security guard A well disciplined and organized security personnel from military background.



He must perform security services for the entire internet café building.

Janitor

 

18-30 years old, Male Must have personal skills to interact effectively with tenants, staff and the public. Must be able to work independently as well as in a team environment.



Maintain a safe, clean, living environment in the building.



Financial Study

Project Cost Summary A. Capitalizable Expenditure   

Equipments (refer to schedule 1) Appliances (refer to schedule 2) Furniture and Fixture (refer to schedule 3)

Total Capitalizable Expenditure

:

P890, 000 12,000 43,000

P945, 000

B. Direct Expenditure 

Pre- operating Expenses

49,000(refer schedule4)

C. Working Capital Monthly Working Capital

70,056

(refer schedule 7) Total Project Cost :

P 1,064,056

A. Capitalizable Expenditure This section represents the necessary assets for the entire operation of Jokjok’s Internet Café. Listed below are the items and their corresponding projected prices Schedule 1

Equipments

Quantity

Unit Price

Total

Clients’ PCs

20

P35,000

P 700,000

PC Server

1

35,000

35,000

Modem

1

5,000

5,000

24 Ports Switch

1

130,000

130,000

Printer

1

10,000

10,000

Scanner

1

10,000

10,000

Total Amount :

P 890, 000

Schedule 2

Furniture and Fixtures

Quantity

Unit Price

Total

Plastic Chairs

20

P 300

P 6,000

Computer Tables

20

300

6,000

Total Amount :

P 12,000

Schedule 3

Appliances

Quantity

Unit Price

Total

Air Conditioner1.5 HP

2

P 15,000

P 30,000

Coffee Heater

1

3,000

3,000

Mini- Refrigerator

1

10,000

10,000

Total Amount :

P 43,000

Total Capitalizable Expenditure: P945, 000

B. Direct Expenditure Below is the financial allotment for the following pre-operating activities of Jokjok’s Internet Café. Schedule 4

Pre- operating Expenditure

Survey of the locationPreparation of FS

P 3,00010,000

Sourcing of Funds

3,000

Acquisition of Business Permits and Licenses

3,000 5,000

Acquisition of Materials and Equipments 20,000

Renovation of Building

5,000

Acquisition of Manpower Total :

Schedule 5

Assets

P49,000

Schedule of Depreciation

Usefu Qty Unit Price l life

Total

Annual Depreciation

55

201

P35,00035,000

P700,00035,000

P140,0007,000

5

1

130,000

130,000

26,000

5

1

5,000

5,000

1,000

5

1

10,000

10,000

2,000

5

1

10,000

10,000

2,000

P890,000

P178,000

P6,0006,000

P2,0002,000

P12,000

P4,000

P30,0003,00010,00 0

P6,0001,5002,00 0

P43,000

P9,500

A. Equipments Clients’ PCsPC Server 24 Ports Switch Modem Printer Scanner Total B. Furniture and Fixture Plastic ChairsComputer Tables

33

202 0

P300300

Total C. Appliances Air ConditionerCoffe e HeaterMiniRefrigerator Total

Schedule 6

525

211

P15,0003,00010,00 0

Schedule of Salaries, SSS, PhilHealth and Pag ibig

Position

Monthly Salary SSS

PhilHealth Pag ibig

Total

ManagerComput P9,0004,5003,5 er 00 TechnicianCashi er 3,000

P636318247. P22510010 P10010010 P9,9615,0183,947 3 0 0 .3 212

100

100

3412

Service Staff

2,500

176.7

100

100

2,876.7

Security Personnel

2,000

141

100

100

2,341.3

P24,500

P1,731

P725

P600

P27,556

Janitor Total

Schedule 7

Schedule of Monthly Working Capital

Salaries, SSS, PhilHealth, and Pag ibigLight and Water

P27, 55615,000 500

Telephone 5,000 Repairs and Maintenance 10,000 Rental 7,000 Merchandise Inventory 3,000 Supplies 2,000 Miscellaneous Total :

Schedule 8

70,056

Schedule of Monthly Revenue

Internet AccessPrinting

P85,00011,000

CD/ DVD Burning

20,000

Refreshment

12,600

 

Drinks Pastries

8,400

Total:

137,000

PROJECTED INCOME STATEMENT

Year 1

Year 2

Year 3

Revenue Service Income

P1, 644,000

P1, 808,400

P1, 989,240

Less: Operating Expenses

P840, 672

Direct Expenditure

49,000

Depreciation Expenses

191,500

Net Income before Tax

562,828

P924, 739

P1, 017,213

191,500

191,500

692,161

780,527

Less: Tax Provision (35%)

196,990

242,256

273,184

Net Income after Tax

P365, 838

P449, 905

P507, 343

Note: Revenue and Expenses are increased by 10% every year and thereafter.

PROJECTED CASH FLOW STATEMENT Pro- operating

Year 1

Year 2

Year 3

Cash Inflows Capital C.

P1, 100,000

Revenue Total

P1, 644,000 P1, 100,000

P1, 644,000

P1,808,400

P1, 989,240

P1, 808,400 P1, 989,240

Cash Outflows Capitalizable Expenditure

P945, 000

Direct Expenditure

49,000

Operating Expenses P924, 739 P1, 017,213 Tax Payments 196,990

P840, 672

242,256

Profit Sharing

Total 672

P1, 121,729

Net Cash Flow 328 P686, 671

P994, 000 P1, 259,469

P840,

P106, 000 P729, 771

Add: Cash Bal. Beg. 1,595,999

P803,

106,000

Cash Bal. End. 328 P1, 595,999

909,328

P106, 000 P2, 325,770

P909,

PROJECTED BALANCE SHEET

Assets

Year 1

Year 2

P909, 328

P1,

Year 3 Cash 595,999 Equipment 356,000

P2, 325,770 712,000

534,000

Furniture and Fixture 4,000

8,000

Appliances 14,500

33,500

24,000

P1, 662,828

P2,

Tax Payable P273, 184

P196, 990

P242, 256

Capital

1,100,000

1,100,000

Total Assets 157,999

P2, 696,270

Owner’s Capital and Liabilities

1,100,000 Retained Earning 815,743 Add: Net Income 507,343

Total Capital and Liabilities P2, 696,270

365,838

365,838

449,905

P1, 662,828

P2, 157,999