Libroffee Case Study

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Libroffee Financial Plan Assumptions Market Size Since Libroffee will be located near de LaSalle University Taft, Libroffee got its target market data by getting the students of DLSU, DLS-CSB, St. Scholastic and the residents around DLSU. We have an approximate target market of 52,000 which includes the students and residents. Using the market size equation, population size multiplied by the target market size multiplied by the percentage of users in the target market, multiplied by the frequency of use per year, multiplied by price per unit which will give us this equation: 52000 x 0.00311 x 0.93 x 24 x 120 = 4,331,508.48. Sales Since our business Libroffee will focus on their target market which is college students especially in De La Salle…show more content…
As much as possible, we want our pricing to be lower than our competitors since we target students, they do not have jobs yet and only get allowance from their parents. The point is the budgets of students are limited and we want them to afford our products. We plan to price our products ranging from P80 – P160. Libroffee’s coffee will be offered to the market at an average price of P120. The sales of Libroffee depend on the number of college students in a particular University who are coffee drinkers. In that pool of students, we will get the frequency of the student-coffee drinkers who drink coffee per month, per week, per day. We can multiply that by our average price which is P120 to get an idea of our revenue. Libroffee expects its customers would be atleast 100 per day since we are a start up business. We also expect to have 3000 customers per month. If we multiply it by the average price of P120, the result would be P12,000 which will be Libroffee’s daily sales. That would mean that Libroffee will be earning P84,000 per week, P336,000 per month and P4032000 per

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