Palitaw Feasib for Book Bind

CITY COLLEGE OF SAN FERNANDOCity of San Fernando, Pampanga College of Business Administration

I. EXECUTIVE SUMMARY 1.1 HIGHLIGHTS As we all know, Filipinos are rice lovers as most Asians are. Most Filipinos cannot survive without eating rice or shall we say a meal without rice is incomplete. Rice is being served during morning, afternoon, dinner and even during afternoon snacks. Rice products have invaded the afternoon snacks or meriendas of Pinoys. Based on Food and Nutrition Research Institute, processed rice products have accounted for about 2 percent of rice consumption in the Philippines. Processed rice products or known as kakanin has a wide variety. It is served during breakfast, merienda and as a dessert. Special occasions like birthdays, fiesta, and graduation wouldnt be complete without kakanin. The business chooses to produce Palitaw one of the famous kakanin in the Philippines. Based on the interview conducted to individuals, Palitaw will be one of their top 3 favorite kakanin. The researchers have also read blogs about the Top 3 best food in the Philippines and Palitaw get the 3rd spot. (Source:http://www.thelongestwayhome.com/blog/food-aroundthe-world/filipino/my-top-3-best-foods-in-the-philippines-and-top-3-worst/)

Ms. Jennelyn S. Padua owner of Jennelyn Padua Distributorship will introduce and distribute to retail outlets and restaurants an innovated version of palitaw. The business named the product as palitaw balls. Compared to the usual flat palitaw, palitaw balls from the name itself describe the shaped of the product. To make it fun and exciting to eat,A PROJECT FEASIBILITY STUDY 1


the product is stuff with yema filling with scrape coconut. The business aims to preserved native kakanins, it is also a way of preserving the Filipino culture through this delicacies. As much as possible, the product will be made affordable to consumers. 1.2 CONCLUSION TO FEASIBILITY 1.2.1 Marketing Feasibility The target markets of the business are those outlets and restaurants around the City of San Fernando who sells or offer kakanin or desserts and willing to be one of our distributors of palitaw balls once the product has been introduced and available in the market. The products demand for its first year (2014) will be based on the contact of sale between Jennelyn Padua Distributorship and distribution channels. Because of the demand dictated by the distribution channels, the whole market share for each distribution channels will be catered by the business. 1.2.2. Technical Feasibility The production processes are: purchasing, cooking, packaging and distribution. Cooking is the boiling of the palitaw balls and stuffing it with coco-yema filling. The business will be open for production 5 hours a day. Jennelyn Padua Distributorship will produce 40 boxes of Palitaw Balls daily. It will increase by 10% annually.

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1.2.3. Financial Feasibility Jennelyn Padua Distributorships total project cost is amounting to P60, 000.00. This would be financed through 83% government loan and 17% equity from the investor. 1.2.4 Management & Personnel Feasibility Jennelyn Padua Distributorship is a sole proprietorship type of business. It is managed by owner/ manager who supervises and oversees the entire business operation. The business has 2 full- time employees who are responsible for the overall production process. 1.2.5 Socio- Economic Contributions Jennelyn Padua Distributorship believes that one way to achieve growth in our economy is through employment. Providing jobs will gradually increase the source of living of each individual. And from it, our government will surely benefit through generating taxes. 1.2.6 Conclusion The business will have an initial capital of Php. 60,000.00 it will be allotted to the salaries of employees, purchase of raw materials, machineries and equipment, furniture and fixtures and supplies that will be needed in the operation of the business.

Our target markets are the retailers and restaurants. We made an agreement by signing a contract of sale, in that case we can easily determine the demand of our product.A PROJECT FEASIBILITY STUDY 3


The demand for the first year will be 40 boxes of Palitaw balls per day. It will increase by 10% annually.

Production is based on our demand it will increase by 10% annually. All costs on production will increase by 10% annually.

The projected net income for the first year will be amounting toPhp.44031.6, and it will increase by 34% in 2015, 40% in 2016, 20% in 2017, and 36% in 2018.

Based on the survey we have conducted, our product Palitaw ball has a potential to penetrate the market. We found out that there are customers that are willing and able to purchase the product. Since Palitaw is already known in the market, we decided to make it more innovative and unique by adding another feature of creamy delicious filling. Competitive price of our product is one factor that can attract retailers to purchase our product, as well as the final consumers. Jennelyn Padua Distributorship made an agreement between the owners of outlet (Nathaniels) and restaurant (JLT Pipanganan). They sign a contract of sales after they have tasted our product. Based from our survey our product was proven to have a demand in the market.


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II. PROJECT BACKGROUND AND HISTORY

2.1 PROJECT PROPONENT Jennelyn Padua Distributorship is managed and owned by Ms. Jennelyn S. Padua Since we are an agricultural country where rice is a staple food and primary produced crop, rice dishes are everywhere and one of which is this Filipino favorite called "Palitaw". Like any other Pinoys, the owner loves palitaw, because she gets tired on eating the usual flat palitaw, an idea came up to her to innovate it. Usually the plain palitaw requires separate ingredients just to add flavor and taste, she realized that it would be better to change it, to become more attractive, exciting and fun to eat. The owner together with its 7 researchers came up with an idea of adding a creamy delicious filling inside that will surely indulge the taste of the customer in every bite. To make it more attractive, the usual flat palitaw was shaped into balls. Aside from its taste, the researchers are much aware of what the product can give in terms of health to customers. We would like to emphasize that our product is safe, healthy and nutritious. Table 2.1 Project Proponents Name Padua, Jennelyn S. Gados, Ezekiel B. Tuazon,Ruth Joy I. Juco, CristineBernadeth A. Valencia, Alpharev J Yamson, Joseph Neilson M. Arquio, Ma. Bernadette Mercado, Mariahlyn S. Address San Nicolas, City of San Fernando, Pampanga Sindalan, City of San Fernando, Pampanga Dolores, City of San Fernando, Pampanga Baliti, City of San Fernando, Pampanga Sindalan, City of San Fernando, Pampanga San Nicolas, City of San Fernando, Pampanga Malino, City of San Fernando, Pampanga Quiebiawan, City of San Fernando, Pampanga Owner Researcher Researcher Researcher Researcher Researcher Researcher Researcher5



2.2 PROPOSED NAME OF THE BUSINESS The name of the business is Jennelyn Padua Distributorship (JPD).It just simply derived from the name of the owner. JPD is producing palitaw balls with creamy coco-yema filling. JPD is aiming to preserve kakanin and not to be replaced with hamburgers, fries, and foot long.

2.3 VISION Jennelyn Padua Distributorship envisions itself to be the leading distributor of Palitaw Balls as well as other famous kakanin within City of San Fernando, Pampanga, by 2018. In 2023, it envisions to be the largest distributor of kakanins who will be distributing in Municipalities and Cities within Pampanga.

2.4 MISSION Jennelyn Padua Distributorship will provide a new innovation of an existing product that will satisfy the taste of the customer, commit ourselves in building customer loyalty by providing them the highest level of safety and quality of our product, provide source of living within the community and to promote a hazard free environment by implementing policies.


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2.5 TYPE OF BUSINESS ORGANIZATION The business will be managed under a sole proprietorship named Jennelyn Padua Distributorship because we only have a minimal amount of money. A sole proprietorship is owned and run by one individual in whom there is no legal distinction between the owner and the business.

2.6LOCATION OF HEAD OFFICE The business will be located at St. Jude Road, Dolores Homesite Ext 2, Dolores, City of San Fernando, Pampanga. TABLE 2.2LOCATION OF HEAD OFFICE


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2.7 HISTORY Brief History

Filipino native delicacies, known as kakanin, are popular snack foods that are usually served as merienda or desserts in the Philippines. Kakanin can be traced way back to precolonial times when our ancestors used suman as offering to gods and visitors. Kakanin are native delicacies made of malagkit (glutinous rice), which comes in two varieties: the firstclass variety that is sweet, rounded and white and the regular variety that is longish and translucent. Kakanin are usually present on special occasions such as weddings, birthdays, anniversaries, and fiesta. No celebration is complete without these kakanin being served in the table. The word kakanin is derived from kanin, Tagalog for rice. The three basic ingredients are malagkit or glutinous rice, coconut milk or gata, and sugar. One of the most famous kakanin in the Philippines and one of the all-time favorite snacks of pinoy is Palitaw. Palitaw can be traced way back in the Japanese Era, they considered palitaw to be almost the same as Japanese Mochi Cakes which are sweetened steamed or baked rice flour cakes. Korea also creates an almost similar version that is prepared from rice flour, poached and stuffed with sweet bean paste. Since Asians use a large amount of rice in their diet, almost every culture has different versions of steamed or poached rice balls. Palitaw came from the word litaw which means float or rise. Others named it as waxy rice, pearl rice, and moche rice. The name was derived on the process how palitaw is cooked.A PROJECT FEASIBILITY STUDY 8


III. MARKETING FEASIBILITY 3.1.ASSUMPTIONS

Jennelyn Padua Distributorship will use distribution channels in order to get the product to final consumer.

The researchers assume 2 channels of distribution. The business is assumed to have additional one (1) distribution channels every year.

Mark up price is assumed to be 40% every year. Rejects is estimated to be 4%. Delivery of orders on the first year will be done by the employee, on the third year the business will be renting a tricycle for delivery.


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3.2.MARKET DESCRIPTION Marketing is the vital part of every business and lifeblood of every business transaction. The term Marketing has evolved over time, today marketing is based around providing continual benefits to the customer following a transactional exchange. Since marketing focuses on how to satisfy the market / customer a market study should first be taken into consideration. In marketing, the term market refers to the group of consumers or organizations that is interested in the product and has the resources to purchase the product. And also, market dictates what and how many products/ services to produce. The market study seeks to determine the site, nature and growth of the total demand for the product, description and price of the product to be sold, the supply situation and the nature of the competition, the different factors affecting the market of the product and the appropriate marketing program for the product. Knowing your customer/ market would be the key factor on achieving the objectives of the business. They should be well defined and described. The researchers decided to distribute its products to outlets and restaurants around the City of San Fernando Pampanga, segmentation of market according to family size, age group, etc. is unnecessary. Jennelyn Padua Distributorships market would probably be the outlets and restaurants.A PROJECT FEASIBILITY STUDY 10


Outlet is a store that sells smaller quantities of products to the general public. A business that operates as a retail outlet will typically buy goods directly from manufactures or wholesale suppliers at a volume discount and will then mark them up in price for sale to end consumers. 1. FNC Nathaniels Bakeshop Restaurant is a place where meals are being served to customers or general public. Restaurants usually cook the food in their menu. Still some of the foods being served are bought to a manufacturer especially desserts and kakanins. 1. JLT Pipanganan Size and Composition of the Market: Since Jennelyn Padua Distributorship has a limited initial capital, having a physical store would be an impractical move, the used of distribution channels would be needed to easily penetrate the market at lesser cost. Jennelyn Padua Distributorship would be distributing to 2 channels on its first year these are FNC Nathaniels Bakeshop and JLT Pipanganan. The business will be focusing and invest heavily in pushing its product in the above mentioned distribution channels.


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Geographical Locations of the Market: The distribution channels are all located at the City of San Fernando, Pampanga, near the business location. In this way, distribution of orders would be very easy. 1. FNC Nathaniels Bakeshop located at Km 69 Olongapo-Gapan Road Dolores, City of San Fernando, Pampanga. 2. JLT Pipanganan - McArthur Highway, Dolores, City of San Fernando, Pampanga. Distribution Channels Customer Volume TABLE3.1 DISTRIBUTION CHANNELS CUSTOMER VOLUME 1. FNC Nathaniels Bakeshop Number of Customers 272 302 311 288 347 381 407 2,308

Monday Tuesday Wednesday Thursday Friday Saturday Sunday Total

Source: Based on the customer count conducted by the researchers From February 3 9, 2013


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2. JLT PIPANGANAN Number of Customers 130 121 127 132 146 153 157 966

Monday Tuesday Wednesday Thursday Friday Saturday Sunday Total

Source: Based on the customer count conducted by the researchers From February 10-16, 2013

The customer tally count is conducted among customers who enter the store and purchased a product.

3.2.1 RESEARCH METHODOLOGY In order to gather information to support the study, the researchers used different methods and techniques. These will help the researchers assess the market and answer the question of demand and supply, knowing the competitive situation of the market, an analysis of the competitor, and of course, as a reality check on the products feasibility. 3.2.1 A. Survey The researchers conducted surveys among customers of FNC Nathaniels Bakeshop and JLT Pipanganan, The number of respondents came from the customersA PROJECT FEASIBILITY STUDY 13


who purchased kakanin and desserts. In FNC Nathaniels Bakeshop there are 340 respondents and in JLT Pipanganan 240 respondents. 3.2.1 B. Interview Questionnaire Since the business will distribute its product to retail outlet and restaurant, this will be the business target market. The researchers conducted interview to retail outlet and restaurant in order to gather pertinent information about the target markets taste and preferences. In this way, it will be very easy and reliable for the researchers to find out the demand of the product for a particular outlet or restaurant and what marketing strategies to be used in each distribution channels. 3.2.1 C. Customer Tally Count The researchers conducted a customer tally count on each distribution channels for us to validate the volume of customers they have daily. These will give the researchers an idea on how many customers could potentially buy the proposed product. 3.2.1 D. Product Sampling The researchers conducted product sampling to distribution channels and customers during the survey. It is a way of convincing the distribution channels to accept the proposal on product distributorship. Product sampling to customers is conducted for us to know if they are willing to substitute their product purchased with the proposed product and also a way of knowing how many packs are they willingA PROJECT FEASIBILITY STUDY 14


and able to purchase considering its taste and price, this will also be the bases on demand projection. 3.2.1 E. Interview In addition to the gathered information from the survey, the researchers interviewed relevant people to answer questions that are essential to support the study. The researchers interviewed the owners and managers of FNC Nathaniels Bakeshop and JLT Pipanganan to determine the supply of kakanin and desserts the competitors are able to provide daily, weekly, monthly and annually. 3.2.1.1 RESEARCH DESIGN QUALITATIVE RESEARCH Qualitative research focuses on subjective data. The emphasis is on words and feelings rather than numbers. Qualitative techniques tend to work with fewer subject or respondents, but analyses each case to a deeper level. Under this method the researchers used the following methods: o Interview - The researchers interviewed the manager/owner of outlets and canteens to gather some information that we may need in the said study. It is also used to determine the taste and preference of the market o Product Sampling is freely given to the customers to have the opportunity to try the product and also to determine their opinions.


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QUANTITATIVE RESEARCH Quantitative research is a formal, objective, systematic process for obtaining quantifiable information about the world; and presented in numerical form, and analyzed through the use of statistics.

The researchers gathered information through the use of the following method: o Survey is the method of gathering information from a selection of individual. The purpose of a survey is to collect data. The data collected is usually used in research. Often surveys are conducted to determine consumers buying preferences. o Tally is the manner of counting and recording of data. The researchers used this method to evaluate the data gathered and to make an analysis of the result for decision making.

3.2.1.2 SOURCES OF DATA Primary Sources - The researchers gathered data from FNC Nathaniels Bakeshop and JLT Pipanganan regarding information that is essential to determine the demand of the product and competitors production capacity. Secondary Sources Data are gathered from books and internet.


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3.2.1.3 SAMPLING DESIGN The researchers used a Non-probability Sampling Techniques. As defined Nonprobability sampling is a sampling technique where the samples are gathered in a process that does not give all the individuals in the population equal chances of being selected. As the researchers conducted survey to selected subject. 3.2.1.4 RESEACH INSTRUMENT The researchers used different books from Pampanga Provincial Library and surf the internet in order for us to gather information that we may need in the said study. 3.2.1.5 DATA GATHERING Data are gathered from different individuals that are relevant to give information to support the study. The researchers also used different methods in gathering information. The data for this research were collected using a survey questionnaire. The survey was created using suitable questions that formed by the researcher. The survey was comprised of 5 questions, which could answer the question on the perception of the customers to the proposed product. After the professor validated the questionnaire, these were asked to the customers who purchased kakanin and/or product substitute. conducted during the survey. Product Sampling is also


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Marketing Research Process 1. Problem definition Purpose of the Study: The researchers conducted market research to determine the feasibility of the product in a chosen market. Background Information: The business will distribute its product to distribution channels It is assumed that there are 2 channels of distribution Products demand for the first year is based on the quantity ordered written in the Contract of Sale between Distribution Channels and Jennelyn Padua Distributorship. Information Needed: Information that could be used in the projection of demand. Information on the quantity supplied by the competitor to the market. Analysis on the demand and supply to determine the market share that is needed be served. Acquired information is to be used on decision making. This involves decision on production how many packs of palitaw balls the business will be producing annually and the portion of unserved market the business is willing to serve.


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2. Development of an Approach to the problem The data for this research were collected using a survey questionnaire. The survey was created using suitable questions that formed by the researcher. The survey was comprised of 5 questions. Survey Questionnaire Questions: 1. Product Purchased? 2. Quantity of the Product Purchased 3. Do you eat palitaw? 4. Do you prefer palitaw with fillings as a substitute of what you purchased? 5. If Nathaniels/ JLT Pipanganan will sell palitaw with fillings or add palitaw with fillings in their menu, how many packs are you willing and able to purchase at Php 70.00 8 pieces per pack?

3. Research design formulation Using the survey question mentioned above, the survey is conducted among customers who purchased kakanin and desserts.

Question 1: Product Purchased This question provides the researchers an idea of what products are frequently purchased


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Question 2: Quantity of Product Purchased This question provides the researchers data that could be used to validate the interview conducted to competitor regarding their capacity to supply kakanin and desserts. Question 3: Do you eat palitaw? This question provides the researchers data on the how large is the market of palitaw. This could be determined by getting the percentage of the market that eatspalitaw. Question 4: Do you prefer palitaw with fillings as a substitute of what you purchased? This question provides the researchers idea on the competitive situation of the product. By asking Question 4, the researchers will be given an idea on how many customers are willing to substitute palitaw with fillings from what they purchased. Question 5: If Nathaniels/ JLT Pipanganan will sell palitaw with fil lings or add palitaw with fillings in their menu, how many packs are you willing and able to purchase at Php 70.00 8 pieces per pack? This question provides the researcher information regarding the demand of the product. Information gathered will be used as the bases on demand projection.A PROJECT FEASIBILITY STUDY 20


4. Fieldwork or data collection process Survey will be used as tool in data gathering. Survey is to be conducted among customers of FNC Nathaniels Bakeshop who purchased Kakanin and at JLT Pipanganan, the customers who avail desserts and kakanin after their meal. The researchers will conduct survey for one week.Respondents will be the customers who purchased kakanin in FNC Nathaniels Bakeshop, desserts and kakanin at JLT Pipanganan. The researchers will stay outside the retail outlet and restaurant and wait for the customers to come out.


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FIGURE 3.1FIELDWORK OR DATA COLLECTION PROCESS Procedure of questioning will be as follows:

Question 1: Product Purchased

Question 2:

ANSWER

Quantity

ANSWER

Question 3: Do you eat palitaw?

YES

NO END

Question 4:Do you prefer palitaw with fillings as a substitute of what you purchased?

Question 5:If Nathahiels/JLT will sell patiaw with fillings, how many packs are you willing and able to purchase at Php 70.00/ 8 pieces per pack?

QUANTITY Y

YES

NO END


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5. Data preparation After the survey, data are to be tallied, encode and verified by the researcher.

6. Report preparation and presentation The researchers will now make the documentation or written report that addresses the specific research question and present the findings or analysis.


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FNC NATHANIELS BAKESHOP QUESTION 1: PRODUCT PURCHASED FIGURE 3.2 FNC NATHANIELS BAKESHOPQUESTION 1 PRESENTATION& ANALYSIS

QUESTION 1: PRODUCT PURCHASED

80 70 60 50 40 30 20 10 0

75

52

48 41 34 27

22.06 15.29 14.12 12.06 10 7.94

18 12 5.29 3.53 10 2.94 10 2.94 51.47 41.18 41.18

# of customers

% Percentage

Analysis: Based on the survey conducted among 340 respondents, PutoPao, Moche, Pichi- Pichi, Puto Assorted and Cutchinta are the Top 5 products which are frequently purchased in FNC Nathaniels Bakeshop.


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QUESTION 2: QUANTITY OF PRODUCT PURCHASED

FIGURE 3.3 FNC NATHANIELS BAKESHOPQUESTION 2 PRESENTATION& ANALYSISPuto Pao - 1 pack/ 25 pieces Puto Pao - 1 pack/ 6pieces Moche - Bilao 31 27 11 27 9 11 Moche - 1 box / 6pcs Pichi Pichi Bilao Puto Assorted 1 pack/ 15 pcs Puto Assorted Bilao Cutchinta - 1 pack/ 25 pcs Cutchinta - 1 pack/50 pcs Puto Puti - 1 pack/ 15 pcs Tibok Tibok Big

60 50 40 30 20 10 0 23

52

48

24

28

7

6 6 4 6

10 5 3 5 2

Analysis: As shown in the graph, 52 customers have purchased PutoPao 6 pieces per pack and 48 customers have purchased PichiPichi Bilao.

Puto Pao - 1 pack/ 25 Puto Pao - 1 pack/ Moche - Bilao Moche - 1 box / 6pcs Pichi Pichi - Bilao Puto Assorted - 1 Puto Assorted - Bilao Cutchinta - 1 pack/ Cutchinta - 1 pack/50 Puto Puti - 1 pack/ Tibok Tibok - Big Tibok Tibok - Small Rice Cake - Regular Rice Cake Small Cassava Cake - Big Cassava Cake - Small Sapin Sapin - Small Biko - Bilao Maja - Small Maja - Container Halaya - Small


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QUESTION 3: DO YOU EAT PALITAW? FIGURE 3.4 FNC NATHANIELS BAKESHOPQUESTION 3 PRESENTATION& ANALYSIS

60 50 40 30 20 10 0

53

37 22 15

34 29 24 19 14 12 10 13 8 5 9 3 7 7 4 YES NO 3 3 1 2 2 3 1

Analysis: The survey is conducted among 340 respondents who are asked to answer Question 3. This will help the researchers in determining the number of respondents who eats palitaw.The result shows that241 respondents who purchased kakanineatpalitawand the 99 doesnt eat palitaw.


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QUESTION 3: DO YOU EAT PALITAW?

29.12%

YES 70.88% NO

Analysis: Based on the survey conducted to 340 respondents who purchased kakanin, 70.88% of the respondents have answered YES to Question 3 and more than 29.12% have answered NO. The result shows that there is a larger percentage of market that eats palitaw.


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QUESTION 4: DO YOU PREFER PALITAW WITH FILLINGS AS A SUBSTITUTE OF WHAT YOU PURCHASED?

FIGURE 3.5 FNC NATHANIELS BAKESHOPQUESTION 4 PRESENTATION & ANALYSIS35 30 25 20 20 15 10 5 0 14 13 23 21 18 15 11 12 9 7 8 5 54 43 43 3 1 2 21 yes no 33

0

Analysis: From the 241 respondents who answerYES to Question 3. We asked Question 4, this question will help the researchers to determine the demand of palitaw with fillings. The result shows that150 respondents have answered that they are willing to substitute palitaw with fillings from what they have purchased and 91 have answered they are not willing to substitute palitaw with fillings from what they have purchased.A PROJECT FEASIBILITY STUDY 30


QUESTION 4: DO YOU PREFER PALITAW WITH FILLINGS AS A SUBSTITUTE OF WHAT YOU PURCHASED?

37.76% YES NO

62.24%

Analysis: Based on the survey conducted to 241 respondents who came from the number of customers who answer YES to Question 3, 62.24% have answered YES to Question 4 and 37.76% have answered NO. The result shows that a larger percentage of customers would substitute their product purchased to Palitaw with fillings. This means that the proposed product has demand on the market (FNC Nathaniels Bakeshop).A PROJECT FEASIBILITY STUDY 31


QUESTION 5: IF NATHANIELS WILL SELL PALITAW WITH FILLINGS, HOW MANY PACKS ARE YOU WILLING AND ABLE TO PURCHASE @PHP 70.00, 8 PCS PER PACK?

FIGURE 3.6 FNC NATHANIELS BAKESHOPQUESTION 5 PRESENTATION& ANALYSIS

70 70 60 50 38 40 30 20 10 0 34 27 16 11 8 7 9 5 6 Quantity 50

48

Analysis: The result shows that the product has a market demand of 329 packs in a week at FNC Nathaniels Bakeshop. This will be the bases on the projection of demand for the next 4 years.


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JLT PIPANGANAN QUESTION 1: PRODUCT PURCHASED

FIGURE 3.7 JLT PIPANGANAN QUESTION 1 PRESENTATION & ANALYSIS35 30 25 20 15 10 5 0 Cassava Cake Maja Blanca Crema de Fruta Biko Assorted Pastries Fruit Salad Buko Pandan Salad Buco Sherbet w/ Lychee 33

32

32

31 29 28 28 27

13.75

13.33

13.33

12.92

12.08

11.67

11.67

11.25

# of customers % percentage

Analysis: The survey is conducted among 240 respondents/customers of JLT who ordered desserts. Based on the survey conducted, Cassava Cake, Maja Blanca and Crema de Fruta are the Top 3 frequently purchased or ordered desserts.


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QUESTION 2: QUANTITY OF PRODUCT PURCHASED

FIGURE 3.8 JLT PIPANGANAN QUESTION 2 PRESENTATIONS & ANALYSIS

35 30 25 20 15 10 5 0

33

32

32

31

29

28

28

27 Cassava Cake Maja Blanca Crema de Fruta Biko Assorted Pastries Fruit Salad Buko Pandan Salad Buco Sherbet w/ Lychee

Analysis: The chart shows that the quantity of desserts availed at JLT are almost the same, 33 cassava cake, 32 maja blanca, 32 crema de fruta, 31 biko, 29 pastries, 28 fruit salad, 28 buko pandan salad and 27 buco sherbet are sold.


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Question 3: DO YOU EAT PALITAW? FIGURE 3.9 JLT PIPANGANAN QUESTION 3 PRESENTATIONS & ANALYSIS25 20 15 10 5 0 11 11 11 11

22

21

21

20

19

20

18

18

18

10

10

9 YES NO

Analysis: The survey was conducted among 240 respondents who avail JLTs desserts. The result shows that 159 of the respondents eat palitaw and 81 of the respondents who doesnt eat palitaw.


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QUESTION 3: DO YOU EAT PALITAW?

33.75% 66.25%YES NO

Analysis: The survey is conducted among 240 respondents/customers who avail desserts from JLT. 66.25% of the respondents have answered YES to Question 3 and 33.75% have answered NO. The result shows that many of the respondents eat palitaw rather than those respondents who doesnt eat palitaw.


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QUESTION 4: DO YOU PREFER PALITAW WITH FILLINGS AS ASUBSTITUTES OF WHAT PURCHASED?

FIGURE 3.10 JLT PIPANGANAN QUESTION 4 PRESENTATIONS & ANALYSIS

80

60

40

yes 15 7 15 6 15 6 no 14 6 13 6 13 7 13 5 12 5

20

0 cassava cake maja blanca crema de fruta biko assorted assorted pstries pstries buko buko pandan sherbet salad w/ lychee

Analysis: From the 159 respondents who answered YES to Question 3 who ordered desserts at JLT, only 49 of the respondents have answered they are not willing to substitute palitaw with fillings from what they have purchased and the remaining 110 respondents have answered YES.


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QUESTION 4: DO YOU PREFER PALITAW WITH FILLINGS AS ASUBSTITUTES OF WHAT PURCHASED?

30.82%yes

69.18%

no

Analysis: Based on the survey conducted to 159 respondents who came from the number of customers who answer YES to Question 3, 69.18% have answered YES to Question 4 and 30.82% have answered NO, the result shows that a larger percentage of customers would substitute their products purchased to Palitaw with fillings. This means that the proposed product has demand on the market (JLT Pipanganan).


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QUESTION 5: IF JLT PIPANGANAN WILL ADD PALITAW WITH FILLINGS ON THEIR MENU, HOW MANY PACKS ARE YOU WILLING AND ABLE TO PURCHASE @ PHP 70.00, 8 PCS PER PACK?

FIGURE 3.11 JLT PIPANGANAN QUESTION 5 PRESENTATIONS & ANALYSIS30 25 20 15 10 5 0 28 25 27

25

25 21

24 21

Quantity

Analysis: The result shows that the product has a market demand of 196 packs in a week at JLT Pipanganan. This will be the bases of demand projection for the next 4 years.


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3.4 DEMAND ANALYSIS Demand analysis is part of the important task of identifying the needs of the consumers and determining whether they are willing and have the capability to pay for the product the business is contemplating on producing. A comprehensive analysis of demand will give the researchers the projection of the total quantity of products we are going to produce daily, weekly, monthly and annually. The products demand for 2014 is based on the quantity ordered written on the Contract of Sale between Jennelyn Padua Distributorship and the Distribution Channels presented below: 3.4.1- A. MARKET DEMAND OF DISTRIBUTION CHANNELS TABLE 3.4 MARKET DEMAND OF DISTRIBUTION CHANNELS FNC NATHANIELS BAKESHOP (PER PACK) YEAR 2014 2015 2016 2017 2018 DAILY 25 47 69 91 113 WEEKLY 175 329 483 637 791 MONTHLY 700 1316 1932 2548 3164 ANNUALLY 8400 15792 23184 30576 37968

Projection of demand for the next 4 years is based on the survey conducted among customers who purchased kakanin at FNC Nathaniels Bakeshop. Based on the survey conducted, demand of the product (palitaw balls) increase to 22 packs daily compared with the demand dictated by FNC Nathaniels Bakeshop. The result of the survey would be the bases of demand projections for the next 4 years. As shown in the table, the daily demand increase by 22 packs every year. Since delivery will be on a daily basis the researchers used the daily projections of demand.


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JLT PIPANGANAN (PER PACK) YEAR 2014 2015 2016 2017 2018 DAILY 15 28 41 54 67 WEEKLY 105 196 287 378 469 MONTHLY 420 784 1148 1512 1876 ANNUALLY 5040 9408 13776 18144 22512

Projection of demand for the next 4 years is based on the survey conducted among customers who purchased kakanin at FNC Nathaniels Bakeshop. Based on the survey conducted, demand of the product (palitaw balls) increase to 13 packs daily compared with the demand dictated by JLT Pipanganan. The result of the survey would be the bases of demand projections for the next 4 years. As shown in the table, the daily demand increase by 13 packs every year. Since delivery will be on a daily basis the researchers used the daily projections of demand.

3.4.1 B. TOTAL MARKET DEMAND TABLE 3.5 TOTAL MARKET DEMAND (PER PACK) YEAR 2014 2015 2016 2017 2018 DAILY 40 75 110 145 180 WEEKLY 280 525 770 1015 1260 MONTHLY 1120 2100 3080 4060 5040 ANNUALLY 13440 25200 36960 48720 60480


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3.4.1 C. PROJECTED ANNUAL MARKET DEMAND TABLE 3.6 PROJECTED ANNUAL MARKET DEMAND (PER PACK) 2014 8400 5040 13440 2015 15792 9408 25200 2016 23184 13776 36960 2017 30576 18144 48720 2018 37968 22512 60480

NATHANIELS JLT TOTAL

3.5

SUPPLY ANALYSIS Analysis of supply will help the researchers in determining the competitive situation of the product in the market. We determine our supply based on the interview conducted to competitors, the data gathered is validated through survey conducted to customers who avail or purchased the direct and substitute products. TABLE 3.7 SUPPLY ANALYSIS OFFNC NATHANIELS BAKESHOP FNC NATHANIELS BAKESHOP (PER PACK)

WEEKLY PutoPao Moche Pichi-Pichi TOTAL 75 52 48 175

MONTHLY* 150 104 96 350

ANNUALLY 1800 1248 1152 4200

Source: Information are gathered from competitors through interview and validated through survey.A PROJECT FEASIBILITY STUDY

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* Delivery of kakanin to FNC Nathaniels Bakeshop is done twice a month. TABLE 3.8 SUPPLY ANALYSIS OF JLT PIPANGANAN JLT PIPANGANAN (PER PACK) WEEKLY Cassava Cake Maja Blanca Crema de Fruta TOTAL 33 32 32 97 MONTHLY* 66 64 64 194 ANNUALLY 792 768 768 2328

Source: Information are gathered from competitors through interview and validated through survey * Delivery of kakanin and desserts to JLT Pipanganan is done twice a month.

TABLE 3.9 TOTAL EXISTING SUPPLY (PER PACK)WEEKLY FNC Nathaniels Bakeshop JLT Pipanganan TOTAL MONTHLY ANNUALLY

175 97272

350 194544

4200 23286528


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3.5.1 PROJECTED ANNUAL EXISTING SUPPLY TABLE 3.10 PROJECTED ANNUAL EXISTING SUPPLY TOTAL SUPPLY (PER PACK) 2014FNC Nathaniels 4200 Bakeshop JLT Pipanganan TOTAL 2328 6528 2910 8160 3638 10200 4547 12750 5684 15938 5250 6563 8203 10254

2015

2016

2017

2018

Based on the interview conducted among competitors, they increase their production of kakanin and desserts by 25% annually both for FNC Nathaniels Bakeshop and JLT Pipanganan.

3.5.2 CAPACITY ANALYSIS Analyzing the capacity of the business to supply annually is as important as the analysis of demand and supply. The business should have enough resources such as manpower, equipment and machineries for production as well as consistent supply of raw materials in order to satisfy the unserved market.


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Jennelyn Padua Distributorship made its supply capacity based on its resources. The business has 2 personnel, 2 piece single burner gas stove and product preparation of 320 pieces or 40 packs requires 230 minutes or 3hrs 50mins. JENNELYN PADUA DISTRIBUTORSHIPs production schedule will be from Monday - Sunday, from 5am 10am in order to supply 40 packs (8 pieces per pack) daily and 13, 440 packs (8 pieces per pack) annually on its first year. 3.5.2.1 POTENTIAL SUPPLY CAPACITY Supply of raw materials will be consistently provided by the supplier. Purchasing of raw materials will be done weekly. TABLE 3.11VOLUME OF SUPPLIES NEEDED VOLUME OF SUPPLIES NEEDED Daily Weekly Monthly 5kgs. 35 kilograms 200 kilograms 1.25kgs 12 kilograms 50 kilograms 1.25kgs 50 pcs/175 grams 200 pcs/175 grams 5(380g) 50g 5pcs(175g) 5pcs 50 pcs/medium size 5 cans/100 grams 50 cans/380 grams 12 kilograms 200 pcs/medium size 20 cans/100 grams 200 cans/380 grams 50 kilograms

Raw Materials Glutinous Rice Sesame Seeds Sugar Condensed Milk Margarine Coconut Egg(medium)

Annually 2,400 kilograms 660 kilograms 2400 pcs/175 grams 2400 pcs/medium size 240 cans/100 grams 2400 cans/380 grams 600 kilograms


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3.5.2.1.1 ANNUAL POTENTIAL CAPACITY TABLE 3.12 ANNUAL POTENTIAL CAPACITY PRODUCTION (PER PACK) 13448* 14784 16262 17889 19678

YEAR 2014 2015 2016 2017 2018

*In 2014, JENNELYN PADUA DISTRIBUTORSHIP will have additional 8 packs as part of its advertisement and promotional strategies. The 8 packs will be used by the business for product sampling to potential customers. Production is estimated to increase by 10% annually.

3.6 DEMAND-SUPPLY ANALYSIS TABLE 3.13 PERCENTAGE OF THE UNSERVED MARKETDEMAND (per pack) SUPPLY (per pack) DEMAND SUPPLY (per pack) % MARKET SHARE

YEAR 2014* 2015 2016 2017 2018

13440 25200 36960 48720 60480

8160 10200 12750 15938

17040 26760 35970 44543A PROJECT FEASIBILITY x 100 STUDY

67.62% 72.40% 73.83% 73.65%47


Computation: Market Share = Demand Supply Demand *As shown in the table above, there is no computation of demand-supply gap in 2014. The reason behind this, the demand for 2014 is dictated by the distribution channels based on the contract of sale between JENNELYN PADUA DISTRIBUTORSHIP and the distribution channels. It is agreed that the business will produce the demand dictated by the outlet and restaurant. Therefore it will cater the 13440 packs demand by the distribution channels. TABLE 3.14 PERCENTAGE OF TARGET MARKET SHARE DEMAND - SUPPLY YEAR 2014 2015 2016 2017 2018 GAP 17040 26760 35970 44543 TARGET PRODUCTION 13448* 14784 16262 17889 19678 % OF D-S GAP 67.62% 72.40% 73.83% 73.65% TARGET % MARKET SHARE 54.38% 33.17% 23.56% 17.83%


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3.6 GENERAL MARKETING PRACTICES OF THE COMPETITORS Since the business target market will be the outlets and restaurants, the business competitor will be other manufacturers who also distribute their products to distribution channels. Direct Competitor manufacturer who distributes products that are virtually identical to the proposed product that is offered for sale within the same market. Jennelyn Padua Distributorships direct competitor will be the manufacturer of Kakanin that sold in the outlets and restaurants. Indirect Competitor/ Product Substitute manufacturer who distributes products that are different from the proposed product but offer different alternatives to satisfy the same customer need. Jennelyn Padua Distributorships indirect competitor will be the manufacturer of merienda and desserts that is sold in the outlets and restaurants.


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3.7

SWOT ANALYSIS An acronym for internal strengths and weaknesses and external opportunities and

threats, which represents the four categories used by advertising managers when reviewing a marketing plan. The SWOT Analysis briefly restates the companys current situation, reviews the target market segments, itemizes the long and short term marketing objectives and cites decisions regarding market positioning and marketing mix. Analyzing the firms strength will give the business advantage over its competitor. Knowing the firms weaknesses will give the firms idea on what preventive measurements and plan that the company will use to convert its weaknesses into strength. Opportunities are external factor that could positively affect the business. This could be used by the business for its continuous operation. Threats are external factors that negatively affect the business. Forecasting business threats will be useful tool to prevent this threat or at least lessen the negative outcome that could affect the business.


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TABLE 3.15 SWOT ANALYSISINTERNAL ANALYSIS STRENGTHS The product (palitaw balls) is a good source of carbohydrates, protein and calories because of its natural ingredients. Palitaw could be eaten any time of the day and could be a substitute for the usual desserts. The product has unique characteristics in terms of cooking process and product presentation. The business will have consistency on its production since the raw materials are abundant and no seasonality, machines are assumed to perform 100% accurate and hired personnel are efficient for production. The business will be given an opportunity for product specialization since it temporarily offers only one product. The product has no artificial ingredients like food color, preservative etc. that are found in other kakanin and substitute products The product can compete strongly because of its reasonable price and more benefits offered compared to other products. The business is strategically located near the target market. EXTERNAL ANALYSIS OPPORTUNITIES There will be an assurance of the demand because of the contract of sale between the business and distribution channels. The expanding demand for nutritious and healthy foods, since the business commits itself to offer products that are nutritious and healthy. Stable economy for the year 2014. - Economic Planning Secretary Arsenio Balisacan said the government would aim for the economy to grow by a range of 6 to 7 percent for in 2013, and between 6.5 and 7.5 percent in 2014. Source: Philippine Daily Inquirer, Published: Thursday, November 29th, 2012 Support coming from the local government for entrepreneurs and micro-businesses in terms of financial and promotions of the product. Fernandinos are fond of eating palitaw.

WEAKNESSES The business has a limited capital Being a new entrant in the food industry will give the business difficulty in convincing customers to patronize the product being offered. Most of the competitors have strong financial resources. Most of the competitors used high-tech machines and equipment for their production. Competitors have greater potential to attract customers.

THREATS Increasing number of competitors Political unrest and economic crisis Natural calamities in the Philippines will greatly affect the supply of the products raw materials. Inflation or prices of raw materials will potentially increase.


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TABLE 3.16 SWOT ACTION PLAN Weaknesses The business has a limited capital Action to be Taken The business could maximize all its resources to increase net income rapidly that could be used by the business as additional working capital The business will have to invest heavily on promotions and advertisements to gain public awareness and acceptance of the product. As well as, the business needs to consistently produce quality products. Action to be Taken The business could take this as an opportunity for product specialization. As the number of competition increases products will be improved and develop. The business could not do something to overcome this threat because this is inevitable. The business will maximize its resources so that it could go after the economic instability. When this fortuitous event happens, the business will have plans and preventive measures to avoid scarcity of raw materials. The business will maintain enough amount of raw materials stored in case of the occurrence natural calamities Often times, as the price increases demand for the product also increases. The business will convert this into opportunity of gaining higher demand of the product.52

Being a new entrant in the food industry will give the business difficulty in convincing customers to patronize the product being offered.

Threats Increasing number of competitors

Political unrest and economic crisis

Natural calamities in the Philippines will greatly affect the supply of the products raw materials.

Inflation or prices of raw materials will potentially increase.



SHORT TEM AND LONG TERM OBJECTIVES SHORT TERM OBJECTIVES These are the objectives of the business that are attainable for 1 year or less. 1. To increase market share by 4.78% annually. 2. To increase sales by at least 12% every year. 3. To increase production by 10% every year. 4. To obtain break-even point within 8 months of the business operation. 5. To have an additional distribution channel every year.

LONG TERM OBJECTIVES

These are the objectives of the business that are attainable for more than 1 year.

1. To attain return on investment on the second year of the operation. 2. To meet long term obligations likeloans that is payable for 2 years. 3. To obtain net income of 100,000 on its 5th year. 4. To establish a name as a major distributor of kakanin.


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TABLE 3.17 SHORT TERM OBJECTIVES ACTION PLAN OBJECTIVE SHORT TERM OBJECTIVES 1. To increase market share by 4.78% annually. STRATEGY RESOURCES TIME FRAME

2. To increase sales by at least 12% every year.

3. To increase production by 10% every year.

4. To obtain break-even point..

5. To have an additional distribution channel every year.

Business capital resources along with good management and advertising strategy of the owner/manager and employees. Having additional Business capital distribution channels this resources along with could be attain through the effort of manager promotions which consist to develop and ofinternet ads, promotional implement good materials like tarpaulin, promotional strategies posters and business card, as well as cooperation communicating to potential of employees. customers and product sampling. To produce quality products that could Efficient employees for satisfy customers production. needs and wants in return gaining additional orders from customers To produce 9600 Efficient employees for packs of palitaw production, sufficient balls at a price of supply of raw materials Php. 51.00 and reliable tools and equipments To communicate Communication with potential devices and customers through advertisement product sampling strategies made by and marketing manager program like product discounts on their first purchase.A PROJECT FEASIBILITY STUDY 54

Good advertising strategy to attain public awareness and acceptance in return increase in products demand.

1

year

1

year

1

year

8

months

1 year


TABLE 3.18 LONG TERM OBJECTIVES ACTION PLAN

OBJECTIVE LONG TERM OBJECTIVES 1. To attain return on investment.

STRATEGY

RESOURCES

TIME FRAME

2. To meet long term obligations like loans that is payable for 2 years.

3. To obtain net income of 100,000 on its 5th year.

4. To establish a name as amajor distributor of kakanin.

Maximization of business resources,minimization of expenses and elimination of unnecessary expenses Maximization of business profit through consistency on sales that will attain through good customer relationship Having 5 distribution channels with production of 18,708 packs at a pricePhp 72.00 Good marketing and personal relationship with distribution channels and potential customers

Efficient manager and employees

2

years

Businessresources and manager

3

years

Business capital resources, managers and employees Business capital resources, managers and employees

5 years

2 3 years


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3.9 PROPOSED MARKETING PROGRAM 3.9.1 TARGET MARKET Marketing focuses on understanding the target market knowing what they need and who needs to be served. Target market is the segment of market to which the marketer wants to sell a product toward which all marketing activities will be directed. For this market study, since Jennelyn Padua Distributorship will manufacture and distribute its product the business would favourably invest heavily on the following market: 1. Retail outlets retail outlets that sell kakanin, desserts and merienda. Restaurants restaurants who offer kakanin, merienda and desserts in their menu and willing to avail our product.

3.9.2

SUPPLY FORCE Every business should have a steady supply of raw materials in order to maintain

the consistency of production. Fresh maker trading located at Old Public Market, City of San Fernando, Pampanga will be the firm primary supplier of raw materials. The researchers decided to have a one stop shop store that could provide all the needed materials. In this way, the business could save time and money and lessen the cost on product preparation. And purchasing in bulk would give the firm a discount on raw


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materials. Alternative supplier would be at New Public Market, we will purchase each raw material to individual stores. To secure a steady supply the business will have a contract agreement to Fresh maker. It is stated in the agreement that Fresh Maker will supply our raw materials. In case Fresh Maker lacks supply of raw materials. It is the suppliers obligation to purchase our needed raw materials or look for an alternative supplier. Central Luzon is known as one of the largest producer of palay in the Philippines. According to Department of Agriculture 3,220,607 palays were produced in 2012. Surely, will have an abundant supply of galapongor glutinous rice that is why when the above mention supplier can no longer supply the needs of the business, Jennelyn Padua Distributorship will contract suppliers from Nueva Ecija and Tarlac where palays are abundant. In worst cases that the Central Luzon could no longer supply glutinous rice, the business will get supplies in Pangasinan next to Central Luzon that has abundant supply of glutinous rice, Jennelyn Padua Distributorship will contract suppliers from Laguna, where coconut from Pampanga are being acquired. Sugars alternative supplier is PASUDECO manufacturer of sugar in the City of San Fernando. In worst cases if the mention can no longer supply sugar, the business will contract supplier from Tarlac known for its largest plantation of sugar in the Philippines. The supplier will deliver the raw materials every week. Delivery will be free of charge.


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3.9.3

MARKETING RESEARCH AND DEVELOPMENT PROGRAM Since the business innovate an existing product and will only distribute its product

to distribution channels, market research will be unnecessary. The development of the product will be taken gradually because the product itself does not need instant development. 3.9.4 PRODUCT MIX STRATEGIES Product Mix A product mix is the set of all the products offered for sale by a company. The structure of product mix has width, depth, length and consistency or Product mix is defined as, the set of all product lines and items that a particular seller offers for sale to buyers.The product mix is also known as product assortment. Or factors influencing change in product mix. 3.9.4.1PRODUCT-MIX WIDTH The width of the product mix refers to how many product lines the company carries. Jennelyn Padua Distributorship will have one product line, which is palitaw. The researchers came up with this decision, as we all know that palitaw have been existed in the market for a long time and one of the favorite merienda of Filipino. Since the business is just a new comer in food industry having one product line will give the business an opportunity for product specialization and this will eliminate low profit products and focusing on a product that could give the business more profit.A PROJECT FEASIBILITY STUDY

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3.9.4.2.PRODUCT-MIX DEPTH The depth of the product mix refers to how many varieties are offered of each product in the line. Jennelyn Padua Distributorships Palitaw balls, is currently offering one available flavor which is creamy coco yema. Surely, the business will offer different flavors in the near future. 3.9.4.3.PRODUCT-MIX CONSISTENCY The consistency of the product mix refers to how closely relate the various product lines are in end-use, production requirements, distribution channels or in some other way. Product consistency can be achieved through consistency on production and consistency of the product regarding its size, weight, color and taste. Since Jennelyn Padua Distributorship will have one product line, which is palitaw. Jennelyn Padua Distributorship will be consistent on its production of palitaw balls, this could be attain considering the different factors such as supply of raw materials, accuracy of tools and equipment for production and efficiency of hired personnel. Delivery of the raw materials will be consistent because of the contract agreement we made from the supplier, tools and equipment are assumed to perform 100% accurate because these will be purchased brand new, of high quality and have enough capacity to meet the firms production. Personnel are assumed to be efficient for production. Only qualified applicants will be hired during the hiring process. Proper training will be given to eachA PROJECT FEASIBILITY STUDY 59


personnel. It is assured that the every orders made by the outlets and restaurants are being supplied. In order to maintain product consistency regarding its size, weight, color, packaging and taste, the business assures that standard operating procedures are consistently implemented. Cooking procedure and cooking must be consistently followed. Jennelyn Padua Distributorship a lot time for every procedure, this must be followed by the production personnel. Standard measurements of ingredients must similarly be monitored. These dimensions of the product mix provide the handles for defining the companys product strategy. The company can adopt product lines, thus widening its product mix. Product-Mix Strategy: Manufacturers used several major strategies in managing their product mix. Jennelyn Padua Distributorship will used Contraction on product mix strategy Contraction of product mix: A product strategy that is to thin out the product mix, either by eliminating entire linear by simplifying the assortment with in a line. The shift from fat and long lines to thin and short lines, is designed to eliminate low-profit products and to get more profit from fewer products.


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3.9.4. MARKET TIMING AND SCHEDULING STRATEGIES

FIGURE 3.12 MARKETING MIX STRATEGIES

Product: "Palitaw Balls"people: 2 employees, 1 manager supplier of raw materials retailers & restaurants

price: 51.00

place: distribution channels

promotions: tarpaulins, posters, free samples, business cards

The 5 Ps of marketing The 5 Ps are a set of recognized marketing tactics, which can be use in any combination to satisfy customers in your target market. The 5 Ps are controllable, but subject to internal and external marketing environments. Combining these different marketing tactics to meet your customers' needs and wants is known as using a 'tactical marketing mix'. Product The product refers to all of the features, advantages and benefits that your customers can enjoy from buying your goods or services. When marketing a product, itA PROJECT FEASIBILITY STUDY 61


business needs to think about the key features and benefits your customers want or need, including (but not limited to) styling, quality, repairs, and accessories. Jennelyn Padua Distributorship Palitaw Balls is made up of natural ingredients that are filled with creamy coco yema fillings. This snack is perfect: People who loves eating kakanin especially palitaw People who are health conscious and fun of eating nutritiousfoods at reasonable price Could be eaten any time of the day, perfect for afternoon snack Could be substitute for desserts People with diabetes could eat this product because of its ingredients. The sweetness of coco- yema filling is made up of condensed milk and not from white sugar. Perfect source of carbohydrates and proteins because of the natural ingredients.

Price This refers to the pricing strategy of the products and services and how it will affect the business customers. The business should identify how much your customers are prepared to pay, how much mark-up the business needs to cater for overheads, profit margins and payment methods, and other costs. To attract customers and


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retain competitive advantage, the business may also wish to consider the possibility of discounts and seasonal pricing. Jennelyn Padua Distributorship will provide quality products in an affordable and reasonable price. JPDs Palitaw balls will be priced at Php 51.00 per pack (per pack will contain 8 pieces) to retail outlets. Retail outlets are allowed to have a mark up price of 19 pesos or 37.25% mark-up price. They could sell our product at Php. 70.00 pesos. Products Price List of Competitors compared to the proposed product priced.] TABLE 3.19 COMPETITORS PRODUCT PRICE LIST

Competitors Products Puto pao Biko

Size 6 pcs 20 pcs Small Container Slice 6 pcs 25 pcs Medium Container Medium (50 pcs) Small (25 pcs) 15 pcs 50 pcs 15 pcs 50 pcs Small Big Slice Bilao Slice

Chicken Puto Pao Birenghe Kutsinta Puto Assorted Puto Puti Rice Cake

Pichi-Pichi

Price Php 100 Php 390 Php 140 Php 75 Php 50 Php 125 Php 485 Php 265 Php 140 Php 125 Php 65 Php 75 Php 200 Php 75 Php 200 Php 110 Php 210 Php 75 Php 150 Php 40 63



Mochi

Tibok-Tibok

Cassava Cake

Maja Blanca

Ube Halaya

Sapin-Sapin

8 pcs 15 pcs 25 pcs Medium Container Slice Small Big Slice Medium Container Slice Medium Small Container Small Medium Container Slice

Php 60 Php 115 Php 185 Php 210 Php 100 Php 60 Php 130 Php 240 Php 65 Php 210 Php 100 Php 60 Php 690 Php 250 Php 125 Php 165 Php 260 Php 125 Php 65

Promotion These are the promotional activities the business use to make its customers aware of the products and services being offered, including advertising, sales tactics, promotions and direct marketing. Place Place is about getting the products to the customer, and includes where a product or service is made, sold or distributed. The business can set yourself apart from your competition through the design of your retail space and by using effective visual merchandising techniques. If business is not aA PROJECT FEASIBILITY STUDY 64


retail business, place is still an important part of your marketing. The business customers may need a quick delivery turnaround, or want to buy locally manufactured products. If starting a new business, finding the right business location will be a key marketing tactic. Jennelyn Padua Distributorship will have its main office at St Jude Road, Dolores Homesite, Extension 2, Dolores, City of San Fernando, Pampanga. Jennelyn Padua Distributorship decided to distribute its product to retail outlets and restaurants to easily penetrate the market at lesser cost. The business will have 2 distribution channels on its first year. People People refer to the staff and salespeople who work for the business, including owner. When the business provides excellent customer service, it creates a positive experience for your customers, and in doing so market your brand to them. In turn, existing customers may spread the word about the business excellent service and you can win referrals. Give the business a competitive advantage by recruiting the right people, staff to develop their skills, and retaining good staff. Jennelyn Padua Distributorship will have 2 full time employees on its first year of operation.A PROJECT FEASIBILITY STUDY 65


3.9.5.1 INTRODUCTION STAGE In the introduction stage, the firm seeks to build product awareness and develop a market for the product. Also, when a new product is introduced to the market, sales volumes are normally not very high. The volume will normally only increase once a number of potential customers become aware of the product and the benefits it has for them. PRODUCT- JENNELYN PADUA DISTRIBUTORSHIP will be starting with one product line the Palitaw balls. Jennelyn Padua Distributorships Palitaw balls is anticipated to earn sales volume that is not very high. Production will be at a fixed volume depending on the orders of target market.

PRICE- To build market share rapidly, the business will be using a penetration pricing strategy, in which prices of the product are set at a very low price and gradually increases.

PLACE- Jennelyn Padua Distributorship will be strategically located near the target market. The business is located at St. Jude Rd Dolores Home site ext.2 Dolores City of San Fernando, Pampanga. It will use distribution channels in distributing its product to final consumer.


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PROMOTION- Promotional strategy will only be the advertisement coming from the customers who tasted the product and have been satisfied or known as the word of mouth. The business will also conduct product sampling to outlets, restaurants and customers on its first year. It is estimated that free samples will be 8 packs.

PEOPLE The business target market will be the outlets and restaurants around the City of San Fernando, Pampanga. It is assumed that the business will have 2 distribution channels namely: FNC Nathaniels Bakeshop and JLT Pipanganan Fresh maker trading will be the business primary supplier of raw materials. On its first year, the business will have 2 full time employees.

3.9.5.2 GROWTH STAGE In the growth stage, the firm seeks to build brand preference and increase market share.

In this stage, the market has been penetrated by the product being offered. The existence of the product is known in the market. In this stage, Jennelyn Padua Distributorship will spend a large amount of money in advertising its product. PRODUCT- Other types of kakanins will be added aside from palitaw.


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PRICE- Jennelyn Padua Distributorship increases its price every year but products are still affordable.

PLACE- The business will retain in the location mention in the introduction stage. But in case there will be changes regarding the target markets location, the business may move to a location that is near with the target market. Aside from FNC and JLT, Jennelyn Padua Distributorship will now expand its distribution channels to other retailers and outlets within City of San Fernando.

PROMOTION- The business will communicate to potential customers through internet, print materials, and communication devices. Jennelyn Padua Distributorship will be now spending on print materials like tarpaulins and posters, the business will also use free resources like having a fanpage in different social networking sites since people nowadays spend more time surfing the net and the business will be using communication devices like cellphones and business cards to reach out to potential customers.

PEOPLE - The business is assumed to have additional distribution channels every year. Fresh maker trading will retain as the firms primary supplier of raw materials. But in case the supplier cannot provide the business needs because of the 10% increase of raw materials annually, the business will look for an additional supplier or look for alternative supplier that could provide the firms needs.


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On the 2nd year, the business will retain 2 full time employees hence they need to work longer hours. On the 3rd year, the business will have 3 employees. Same is true on the 4th year. And on the 5th year, the business will have 4 employees. 3.9.5.3 MATURITY STAGE

In this stage, the product has already accepted in the market. At maturity, the strong growth in sales diminishes. Competition may appear with similar products. The primary objective at this point is to defend market share while maximizing profit.

PRODUCT- JENNELYN PADUA DISTRIBUTORSHIP has already a wide range variety of quality kakanins to be distributed.

PRICE- Established price is set. Increase or change in price will depend on the competition that is available in the market.

PLACE- The business will have the opportunity to branch out either around San Fernando or to other cities and municipalities near the City of San Fernando. JENNELYN PADUA DISTRIBUTORSHIP will maintain its distribution channels during the growth stage and has the potential to add more.

PROMOTION- The business will soon join media advertisement like television ads, newspaper and radio aside from tarpaulins and posters. The success of the advertisement will result to growth of sales.


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PEOPLE Probably, the business will not only distribute to retail outlets and restaurants. The business will now have its own store in which product being offered are displayed. Walk in customers can now purchase directly from our store.

3.9.5.4 DECLINE STAGE In case the product declines, Jennelyn Padua Distributorship will make some strategies on how to make its product feasible again to the market. Possible, the business will add more available flavor like ube fillings, coco jam fillings and even peanut butter fillings. The product will be re invented or new packaging and brand name will be used. The business will provide greater attention in developing new products that will satisfy the markets in the future. 3.9.6 PRICING STRATEGIES Pricing Strategy concern on how products are to be priced directed towards the business objectives and goals. Jennelyn Padua Distributorship used the cost price strategy in order to determine the selling price of our product.


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The formula would be cost per unit plus 40% mark up every year. The retail outlet and restaurant are allowed to have 37.25% or 19 pesos per pack mark-up price. TABLE 3.20 PRICING STRATEGIES 2014 Cost per Unit Add:Mark-up 36 1.4 2015 38 1.4 2016 44 1.4 2017 46 1.4 2018 52 1.4

Selling Price

51

53

62

64

72

3.9.7

TERMS AND CONDITIONS OF SALES STRATEGIES Terms and conditions of sales refers on how goods are to be sold. It may be in cash,

account or instalment. The business terms of payment will be generally in cash. Payments will be collected upon delivery. Delivery will be seven (7) times a week. Stocks will be replenished daily by one of the personnel of Jennelyn Padua Distributorship. The personnel will also collect payments to distribution channels. As much as possible, rejects characterized as deform during the cooking process, substandard in weight, over or under cooked products should be less than 4%.To ensure that rejects will be lessen the hired personnel must have knowledge and skills in the process of cooking the product and these could be attain through proper training. To ensure that this will not happen, the personnelA PROJECT FEASIBILITY STUDY

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should conduct an inspection after the cooking process and before it will be transferredon the distribution channels. 3.9.8 CHANNELS OF DISTRIBUTIONS STRATEGIES Channels of distribution are the different channels through which the goods flow from the manufacturers to ultimate users. Since the Jennelyn Padua Distributorship is a manufacturing type of business, distribution channels will be used. The business will have a three level channel of distribution. From the manufacturer (JENNELYN PADUA DISTRIBUTORSHIP) to the retail outlets who sell kakanin and other product substitute, restaurants who offer kakanin and desserts to final consumer. Further, the business is expected to distribute to other distribution channels FIGURE 3.13 CHANNELS OF DISTRIBUTIONS STRATEGIES

MANUFACTURER

RETAIL OUTLETS

CONSUMERS

MANUFACTURER

RESTAURANTS

CONSUMER


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3.9.9. TRANSPORTATION AND DELIVERY STRATEGIES Transportation and delivery strategies are the reliability, promptness, and cost of alternative ways of transporting the products to the market centers. In the delivery of orders to FNC Nathaniels Bakeshop and JLT Pipanganan, one of the personnel will be assigned on the delivery. In 2014, the personnel will be given a daily transportation allowance of P30.00 that is equal to Php 10,080 annually and it is assumed that it will increase to 10% in 2015. The delivery schedule will be 7 times a week from Monday Sunday. The two personnel will have an alternate schedule for delivery. The delivery will start at 10:30 am at JLT Pipanganan and will end at FNC Nathaniels Bakeshop. On the 3rd year, the business will be renting a tricycle amounting to Php 18,816 in a year. Expense in renting a tricycle will increase by 10% in the 4th 5th year.

FIGURE 3.14 TRANSPORTATION AND DELIVERY STRATEGIES

JPD

JLT PIPANGANAN

FNC NATHANIEL'S BAKESHOP


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3.9.10. BRANDING AND PACKAGING STRATEGIES Branding and packaging strategies help to promote the sales, the products have to be in the right size and kind of packaging. The business will used company name mixed with individual names for its product. The brand name would be JENNELYN PADUA DISTRIBUTORSHIPs Palitaw Balls. The business will used customized brand labels. In th e next 2-3 years the product will be given brand extension New Improved, Jennelyn Padua Distributorships Palitaw Balls. With regards to the packaging, Palitaw Balls will be served in a pastry box containing (8) eight pieces. .Branding and packaging expense will amount to Php 46,032.


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3.9.11. ADVERTISEMENTS AND PROMOTIONS STRATEGIES A successful product or service means nothing unless the benefit of such product or service can be communicated clearly to the target market. Promotion is a persuasive communication that aims to influence the behavior of the consumer in favor of the firms offering. Through promotions, target customers are informed about the nature and type of the firms products, their unique benefits, uses and features as well as the price and place at which this products can be purchased. Jennelyn Padua Distributorship will use publicity strategies which consist of internet, free samples, posters, business cards, tarpaulins, print and/or visual advertisement.

The primary mode of advertisement of the business on its first year will be outdoor print advertising (posters, tarpaulin, etc.) and through the use of internet and social networking sites. The business will also use promotional strategies that are free of charge. This includes using social networking sites and word of mouth. The business will create fanpage in facebook, twitter, myspace, tumblr and instragram.


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TABLE 3.21 PROMOTIONAL MATERIALS PROMOTIONAL MATERIALS

Tarpaulin Tarpaulin will be placed in front of the factory of JENNELYN PADUA DISTRIBUTORSHIPto create a visibility to future possible niche market and it is cheaper than other forms of advertisement.It will serve also as the business signage.

Price: P500.00 Description: COLORED Size: 2 X 7 feet Usable for 1 year

Posters

Price: P200.00

Posters will be placed in front of the factory and other places around the City of San Fernando, Pampanga. The design of the poster can able to catchthe attention of the customers because of the information provided as well as itsaesthetic. Chosen colors are pleasing to the eye and will surely boost the interest ofthereader to avail our product.It is also included in the posters where they can avail our product

Description:COLORED Size: A4 bond paper

Usable for 1 year


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Business Cards

Price: P100.00

Business cards are used by the owner for Description: COLORED Size: 3.5 x 2 50 pcs.

advertisement to potential customers. It is written in the business card the

name of the owner and Free Samples or Product contact details. Sampling Part of the strategy of the business to encourage consumers to buy a product. Product samples are given to the consumer free of charge, giving them opportunity to try the product before making a purchase. Product sampling or free samples will be done on the first year of the business. The business also give free samples during the survey, this is also part of advertising and promotional strategy of the business.

8 packs will be made by Consumable for 1 year JENNELYN PADUA DISTRIBUTORSHIP for product sampling


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Advertising Cost: TABLE 3.22 ADVERTISING COST (in peso)

YEAR

TARPAULIN

POSTERS

BUSINESS CARDS

TOTAL COST

2014

500

200

100

800

2015

550

220

110

880

2016

605

242

121

968

2017

665

266

133

1064

2018

732

293

146

1171

3.9.12. STORAGE STATEGIES Storage strategy refers to where products and raw materials are to be stored. The business should have a room where products and raw materials are to be stored to preserve the freshness of its product and raw materials. Jennelyn Padua Distributorships Factory will have a storage room for raw materials. The room must be cool and has enough ventilation to keep the raw materials fresh and will last for a long time. Because the storage room will serve as an area in which product will be placed and stored, it must be kept clean at all times to prevent pest and rats.A PROJECT FEASIBILITY STUDY 78


3.9.13 PHYSICAL DISTRIBUTION STRATEGIES Physical Distribution strategies refer on how products are to be distributed. The business could use either single plant single market strategy, single plant multiple market strategy or multiple plant multiple market strategy Since Jennelyn Padua Distributorship manufacture and distribute its product to distribution channels, the business will use a single plant multiple market as its physical distribution strategy. 3.10 PROJECTED SALES

TABLE 3.21 PROJECTED SALES PROJECTED SALES Year 2014 2015 2016 2017 2018 Total Production 12902 14193 15483 17096 18708 Selling Price 51 53 62 64 72 Sales 658006 752210 959939 1094124 1347011


79



80



81



82



83



84



85



86



87



88



89



90



91



92



93



94



95



96



97



98



99



100



101



102



103



104



105



106



107



108



109

CITY COLLEGE OF SAN FERNA

Documents

Palitaw Feasib for Book Bind