Rice Retailer Company Final Paper

DR. FILEMON C. AGUILAR MEMORIAL COLLEGE OF LAS PIÑAS

Golden Gate Subd., Talon III, Las Piñas CityTelephone : (02) 805-84-25; 805-85022

Fax : (02) 805-85-22

A Project Feasibility Study

Presented to

The Faculty of Dr. Filemon C. Aguilar Memorial College

of Las Piñas

In Partial Fulfillment

of the Requirement for the Degree of

Bachelor of Science in Business Administration

Major in Financial Management

Presented by:

Buyugan, Lovely

Encinas, Jayson

Laroya, Marvin

Mahilum, Christian

Molina, Albert

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IV-8

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CHAPTER I

INTRODUCTION

This feasibility study is the systematic analysis of all the factors that affect the

possibility of success in this business. Other findings presented in the study become the

basis in deciding whether or not the operation can be sustained. It is a type of business

that determines the achievability of the product.

Rice is one of the most basic and important necessity in a Filipino’s daily life. It is

also considered as an important food in many Asian countries. Philippines is one of the

biggest rice importers in South-east Asia. Rice is being considered as one of our staple

food and comfort food.

To have rice in every meal is one of the traditional we inherited from our

ancestors. A Filipino can’t last a day without eating it. We are used to have it in every

breakfast, lunch and dinner.

Putting up a rice retailer business named “Three Rice Retailer” which a wise and

a good choice because of the high demand of rice here in our country. It will offer high

quality but affordable varieties of rice.

The aim of the study was to look at the feasibility and potential of various

techniques.

A.Business Objectives

1. To provide jobs within the community.

2. To meet the demand of the consumers.

3. To know the potential buyers.

4. To give the customer quality rice at fair competitive price.

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5. To build the good relationship to the customers.

B.Mission Statement

To provide quality rice and service that meets its customer’s satisfaction.

C.Vision Statement

To be the number one rice retailing store in Las Piñas City and to help community

by giving high quality and affordable rice.

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CHAPTER II

TECHNICAL ASPECT

Objectives

1. To describe the product that will offer in the market.

2. To determine the cost and profit for each product offered.

3. To know what kind of supplies, equipment and furniture and fixture the business

will use.

4. To know the overall investment cost.

A.Company Description

One great factor in the success of a business is its name, for it will give the firm its

own personality and will be distinguished from other business. It will stand as a flag

on which lies the performance of the business. With the name alone it can attract the

prospect investors and clients to respond to the product. The name of the firm can

give them a great impact and leaves a mark to the customers.

The name of the business is “Three Rice Retailer”. This will give an easy

recognition because every Filipino loves to eat rice three times a day.

B.Type of Business Organization

Sole Proprietorship is a type of business organization that is owned and controlled

by one individual and in which there is no legal distinction between the owner and the

business. The owner receives all the profits (subject to taxation) and has unlimited

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responsibility for all the losses and debts. Every asset of the business is owned by the

proprietor.

These are the factors that were considered in choosing sole proprietorship as the

form of business organization of Three Rice Retailer.

1. The formation of sole proprietorship business is very easy and simple. No legal

formalities are involved for setting up the business excepting a license or

permission in certain cases.

2. The entrepreneur owned the controlled the business alone. The entire profit goes

to his pocket. This motivates the proprietor to put his heart and soul in the

business to earn more profit.

3. The entrepreneur takes all the decision of the business.

4. Each and every aspect of the business is looked after by the proprietor and the

business.

5. The sole proprietorship business is undertaken on a small scale. If any change is

required in the business operation, it is easy and quick to bring the changes.

6. The scale of operation of sole proprietorship is small and also the employees work

under his direct supervision, the proprietor must maintain the harmonious

relationships with the employees.

7. The cost of formation of a sole proprietorship is to minimal because no cost is

involved in its formation excepting the license fee in certain cases.

8. The dissolution of the sole proprietorship is also very easy. Since the proprietor is

the supreme authority and no regulations are applicable for closure of the

business he can easily dissolve his business any time he likes.

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C. Product Description

Products Description

Dinurado / Denorado Denorado rice or Mindoro rice a type of rice popular in the

Philippines because of its great characteristics, quite

expensive than the other rice.

This rice is tender, slightly sticky when cooked sweet and

pearly white color. Good for household consumption.

Sinandomeng This rice is also mostly bought by people because if you

cooked it the grain is soft and delicious. Sweet preferred for

household consumption.

Milagrosa This type of rice is aromatic long-grain rice with almost

translucent grain. It is very soft, sweet and good smell when

cooked.

Angelika This type of rice is soft, tender and sweet when coke. It is

pearly white in color.

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Wag-wag Wagwag has been around since 1955 when it was first

released by the Philippine Seed Board for lowland

cultivation, primarily in Nueva Ecija and in flood affected

inland areas of Cagayan Valley. Derived from the Tagalog

word wagwagin meaning to shake off.

Wagwag is a traditional rice variety that was extremely

popular in the 60s and 70s for its first-class grain quality.

This type of rice medium grain rice which is tender when

cooked and having a sweet flavor.

Glutinous (Malagkit) This type of rice is also called sticky rice, sweet rice or waxy

rice that is mainly grown in Southeast and East Asia which

has opaque grains, very low amylase content and is it sticky

when cooked

Jasmin This type of rice is a long grain variety of rice that has a

nutty aroma and it is more expensive unlike to other rice.

Sta. Rita This type of rice medium grain rice which is tender when

cooked ad having a sweet flavor and delicious

Brown Rice This type of rice is whole grain rice. It has a mild, nutty

flavor, and is chewier and more nutritious than white rice,

but goes rancid more quickly because the bran and germ

which are removed to make white rice contain fats that can

spoil.

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Black Rice Black rice (also known as purple rice or forbidden rice) is a

range of rice types, some of which are glutinous rice.

Varieties include but are not limited to Indonesian black rice

and Thai jasmine black rice. Black rice is high in nutritional

value and contains 18 amino acids, iron, zinc,

copper, carotene, and several important vitamins. The grain

has a similar amount of fiber to brown rice and like brown

rice, has a mild, nutty taste.

Black rice is a deep black color and usually turns deep

purple when cooked. Its dark purple color is primarily due to

its anthocyanin content, which is higher by weight than that

of other colored grains but more limited in the number of

different anthocyanin species present. It is suitable for

making porridge and it can also be used for making dessert.

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D. Location and Facilities

Since location is a key factor that determines the success of the business, the

proponents decided to situate at #4 Naga Road, Pulang Lupa II, Las Piñas City.

The business renting a commercial space with a measure of 48 square meter.

The space includes toilet room and sink. The proponents chose this site because the

place is accessible and surrounded by subdivisions and also to those by passes along

Naga Road to Pulang Lupa and vice versa.

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E. Layout

TOP VIEW

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F. Company Logo

This logo symbolizes the love of Filipino people eating rice three times a day. The

three sacks of rice represent the varieties of rice that the business offering and the grain

shows the good quality of rice the business offered.

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G.Materials and Equipments

a) Store Equipments

EQUIPMENT

Unit Supplier Brand Quan-tity Price per unit TotalPuregold(Moonwalk)Puregold(Moonwalk)Puregold(Moonwalk)Puregold(Moonwalk)

Push Cart 1 1,250.00 1,250.00 Fire Extinguisher

Darosan Enterprises Rhino 2 2,700.00 5,400.00

13,369.50

DELIVERY VEHICLES

Kawasaki Kawa-sakiMotors (Boxer-CT 150)(Casimiro)

FURNITURE AND FIXTURES

Table Frejr Furniture 1 1,700.00 1,700.00 Chair Frejr Furniture 3 350.00 1,050.00

Food City(Ilaya, Las Piñas )

TOTAL

Filing Cabinet 1 1,500.00 1,500.00

Total 4,250.00

Delivery Tricycle 1 95,000.00 95,000.00

Exhaust Fan Asahi 2 989.75 1,979.50

Weighing Scale (10kgs)

Asahi 1 850.00 850.00

Weighing Scale (60kgs)

Asahi 1 1,550.00 1,550.00

Wall Fan Asahi 2 Php1,170.00 2,340.00

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b) Cost of Renovation

Unit Supplier Brand Quantity Price per unit Total

Plywood

(Rice Divider

and Storage

Room)

New

Distinct

Hardware

Mayur 15 Php430.00 Php6,450.00

Fluorescent Lamp

21 inches

36 watts

Ace

Hardware

(Sm South

Mall)

Philips 2 699.00 1,398.00

Bulb

25 watts

Ace

Hardware

(Sm South

Mall)

Philips 2 100.00 200.00

Paint

(Latex, white,

4 Liters)

Ace

Hardware

(Sm South

Mall)

Boysen 1 659.75 659.75

Paint

(Enamel, white

4 Liters)

Ace

Hardware

(Sm South

Mall)

Boysen 1 679.75 679.75

Lumber

2x2x12 inches

Kabisote

Hardware

Coco 30 230.00 6,900.00

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Nail #1 New

Distinct

Hardware

2 Kilos 80.00 160.00

Nail #2 New

Distinct

Hardware

1 Kilo 85.00 85.00

Nail #3 Kabisote

Hardware

2 Kilos 90.00 180.00

Labor 5 Days 500.00

Per day

2,500.00

Scooper

(Stainless)

Puregold

(Moonwalk)

3 150.00

450.00

Total Php19,622.50

c) Office Supplies

Unit Supplier Brand Quan-tity Consumpt

ion/

Useful

Life

Price per

Unit

Total

Calculator National

Bookstore

(SM

Southmall)

Casio 2 3 Years Php180.00 Php360.00

Logbook National Valiant 2 1 Year 95.00 190.00

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Bookstore

(SM

Southmall)

Ball Pen National

Bookstore

(Southmall)

Fiber

Castle

2 1 Month 10.00 20.00

Stapler National

Bookstore

(Southmall)

1 3 Years 150.00 150.00

Staple

Wire

National

Bookstore

(Southmall)

5 Boxes 1 Years 50.00 250.00

Folder National

Bookstore

(Southmall)

10 1 Year 5.00 50.00

Envelop National

Bookstore

(Southmall)

10 1 Year 5.00 50.00

Total Php1,070.00

d) Maintenance Supply

Unit Supplier Consumption/

Useful Life

Quan-

tity

Price per

Unit

Total

Dustpan Ace Hardware 1 Year 2 Php79.75 Php159.50

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(Stainless)

(Sm South Mall)

Broom Puregold

(Moonwalk)

6 Months 2 149.50 299.00

Mop Ace Hardware

(Sm South Mall)

6 Months 1 279.50 279.50

Trash Bin Ace Hardware

(Sm South Mall)

5 Years 2 250.00 500.00

Rug Puregold

(Moonwalk)

1 month 10 1.00 10.00

Doormat Puregold

(Moonwalk)

3 months 2 35.00 70.00

Dipper Puregold

(Moonwalk)

3 months 1 25.00 25.00

Pail Puregold

(Moonwalk)

3 months 1 120.00 120.00

Total Php1,462.50

e) Promotion Cost

Supplier Size Quantity Price per Unit Total

Signboar

d

Mister Printer 3*12 ft 1 Php2,000.00 Php2,000.00

Tarpaulin Mister Printer 3*9 ft 4 250.00 1,000.00

Flyers Mister Printer 3*6 inches 500 2.00 1,000.00

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Total Php4,000.00

f) Packaging Supplies

Size Quantity Supplier Price per

Unit

Consumption Total

Small

7x20

100 Packs

(100/pack)

Escobedo

Packaging

And General

Merchandis

e

Php17.00 1 Year Php1,700.00

Mediu

m

10x16

50 Packs

(100/pack)

Escobedo

Packaging

And General

Merchandis

e

24.00 1 Year 1,200.00

Large

14x20

25 Packs

(100/pack)

Escobedo

Packaging

And General

Merchandis

e

45.00 1 Year 1,125.00

Total Php4,025.00

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g) Cost of Supply

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COST OF SUPPLY

# of Sacks(25 kilos Per Sack)

Denorado 80 37.20 126,480.00

Special Denurado

40 40.00 40,000.00

Sinandomeng 30.40 91,200.00

Premium Sinandomeng

40 32.00 32,000.00

Milagrosa 25.60 51,200.00

Angelika 30.60 73,440.00

Super Angelika 40 33.00 33,000.00

Wag-wag 25.80 51,600.00

Jasmin 20 47.60 47,600.00

Glutinous (Malagkit)

36.00 7,200.00

Black Rice 45.00 4,500.00

Brown Rice 35.00 3,500.00

418.20 561,720.00

10

4

2

2

Total 220 (5500 Kilos) 234 (11700 Kilos)

60

40

48

40

Brand No. of Sacks(50 Kilos per sack)

Price per kilo Total

28

Suppliers:

1. VJ RICEMILL

Address: McArthur, Highway, Bocaue, Bulacan

Telephone: 02 861 3773

Mobile: +63 926 285 8000(Globe/Touch Mobile)

+63 946 644 4443(Smart/Talk 'n Text)

Email: [email protected]

2. Primavera Rice Mill

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Address: #61 J. Chanjungco Street Corner Eagle Street, New Marikina

Subdivision, Marikina City 1800

Telephone: (02) 646 6397

3. Inandan Rice Mill

Address: #18 Provincial Road Rosario, Cavite City

Telephone: (046) 321-3622

H.Utilities Expense

Items Provider Daily Consumption Monthly

Consumption

Yearly

Consumption

Electricity Meralco Php12.62 Php353.64 Php4,243.68

Water Maynilad 10.00 300.00 3,600.00

Telephone PLDT 33.00 990.00 11,880.00

Load Globe 10.00 300.00 3,600.00

Total Php65.62 Php1,943.64 Php23,314.68

Breakdown of Electric Bill

Item Quan-

tity

Wattage Number of hours

used per day

Cost per

hour

Cost per

day

Cost per

month

Wall Fan 2 65 Watts 6 Php0.92 Php5.50 Php154.10

Exhaust

Fan

2 50 Watts 4 0.70 2.82 79.02

Fluoresc

ent Lamp

2 36 Watts 5 0.50 2.54 71.12

Light bulb 2 25 Watts 5 0.36 1.76 49.40

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Total Php2.48 Php12.62 Php353.64

I. Rental Expense

Monthly Yearly

Rent Php10,000.00 Php120,000.00

J. Gas and Oil Expense

Daily

Consumption

Weekly

Consumption

Monthly

Consumption

Yearly

Consumption

Gas and Oil Php100 Php700 Php3,000 Php36,000

K.Legal Requirements

Validity Fee

1. Business Name Registration (DTI) 5 Years Php300.00

2. Mayors Permit 1 Year

Requirements:

Business Name Certificate (DTI)

Sketch of the business location

Homeowner’s Clearance

Fire Safety Permit 300.00

Community Tax Certificate 25.00

Barangay Clearance 400.00

Electrical Inspection Clearance 1,000.00

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Sanitary Permit 100.00

Lease Contract

2 pcs. 2x2 colored ID Picture 20.00

3. Tax Identification Number (TIN)

Requirements:

Application Form 1901

Mayors Permit

Registration Fee 500.00

4. Social Security System (SSS)

Certificate

Requirements:

Accomplished R1 Form

Business Name Certificate (DTI)

Mayor’s Permit

5. Philippine Health Insurance Corp.

(PhilHealth) Membership

6. Pag-Ibig Membership

Total Php2,645.00

L. Business Schedule

Business Hour 9am-7pm Open Daily

M.Waste Disposal

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There will be a garbage bag inside the trash bin and it will dispose when it already

full. The garbage will be collected by the garbage track collector of Las Piñas City every

Friday morning. The empty sacks of rice will be sold.

CHAPTER III

MANAGEMENT ASPECT

Management is a purposive activity. It is something that directs group effort

towards the attainment of certain pre-determined goals. It is the process of working with

and through others to effectively achieve the goals of the organization by efficiently using

limited resources in the changing world.

In planning a business, there is a need for better understanding of the form of

organization and a proper decision making on how to effectively and efficiently manage

the men, money, materials, machines and methods to attain the company’s objective.

A.Human Resource Management

a) Organizational Chart

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Owner/Manager

Helper/Driver 1 Helper/Driver 2



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b) Duties and Responsibilities

Owner/Manager

1. The manager is the one who manage and supervises the overall operation of

the business.

2. As the owner of the business, he/she has the responsibility of the firm’s debts

and other obligations of the firm. .

3. He/she is also responsible in decision making and other matters with

connection to the business.

Helper/Driver 1 & 2

1. The helper is responsible in attending the needs of the customers.

2. Responsible in weighing the rice and carrying it to the customers.

3. He is responsible for the delivery of rice to the customer.

4. He is responsible to help his co-worker.

c) Recruitment Process

In hiring of personnel, recruitment will be the first step. Next is the requisition of

new employees and actual recruitment of applicants. Recruitment can be done through

employee referral and they must be residing within the vicinity of Las Pinas City.

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Hiring Flowchart

d) Training Flowchart

Training of employees is also required so these employees would learn to

perform and be more efficient in performing a job. It is designed to provide new

employees with the information needed to function comfortably and effectively in the

organization. Training of workers will be within one week. Training will include

handling of machine equipment and being familiar with the nature of their work and

around the vicinity area of the company.

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Reception of Applicants

Final selection by the owner

Preliminary Interview

Orientation/ Introduction

Orientation



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e) Manpower Qualification:

Position Qualifications

Helper/Driver 1 & 2 Male and at least high school graduate.

Physically fit and has a well built body.

At least 18 years old and above.

Never been involved in any criminal violation

Have a Driver’s license

Have a driving experience for at least one year

Honest, Responsible and hardworking.

f) General Business Policies and Rules on Discipline

1. Employees must be polite at all times.

2. Proper hygiene must be maintained inside the working area.

3. Tardiness must be eliminated to avoid sanctions.

4. Customers are always right.

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Familiarization

Actualization



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5. Reason for absences shall be reported two days before the day of

absence.

6. No work, NO pay.

7. In case of emergency, the employees must contact the owner at the day

incident occurred.

h) Sanction

1. For the first offense of the above policies, the employee will be subjected to

verbal warning.

2. For the second offense, a written warning will be given to the employee.

3. Habitual violation of these policies will be ground for termination.

i) Human Resource Schedule

Employee On duty Break Time Day off

Helper/Driver 1 9am-6pm 11am-12pm Monday

Helper/Driver 2 10am-7pm 12pm-1pm Tuesday

j) Human Resource Salary

DAILY MINIMUM WAGE RATES

National Capital Region (NCR) a/

Per Wage Order No. NCR-18 b/

(Effective: 4 October 2013)

Sector/Industry Basic Wage Basic New COLA New

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Wage

Increase

Basic

Wage

Wage Rates

Retail/Service

Establishments

employing 15

workers or less

P 399.00 P15.00 P 414.00 P15.00 P 429.00

1. Basic Salary

Employee Daily Weekly(6days) Monthly(26days) Yearly

Helper/Driver 1 Php429.00 Php2,574.00 Php11,154.00 Php133,848.00

Helper/Driver 2 429.00 2,574.00 11.154.00 133,848.00

Total Php858.00 Php5,148.00 Php22,308.00 Php267,696.00

2. Salary Deduction

ER EE Total Ees ErS Total

1 820.30 399.70 1,220 137.5 137.5 275 100 637.20 10,516.80

2 820.30 399.70 1,220 137.5 137.5 275 100 637.20 10,516.80

Total 1,640.60 799.40 2,440 275 275 550 200 1,274.40 21,033.60

Helper SSS PhilHealth Pag-ibig Total Net Pay

k) Employee Benefits

a. Social Security System (SSS)

b. Philippine Health Insurance Corporation (PhilHealth).

c. Pag-ibig Fund

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d. Overtime and Holiday Pay

e. Paternity Leave

f. Christmas Bonus

B. Quality Control

To ensure the quality of rice, the business must implement the FIFO (First in

First out) system. This system is that the first product delivered must be sold.

C. Gantt Chart

2013 201

4

Activities Oct. Nov. Dec. Jan1

week

2

week

3

week

4

week

1

week

2

week

3

week

4

week

1

week

2

week

3

week

4

week

Project

conceptualization

And planning

Preparation of

business proposal

Survey of location

Population and

environment

evaluation

Distribution of

questioners

Canvassing of

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materials and

Equipments

Registration of legal

forms

Allocation of funds

Building and Facility

Renovation

Recruitment and

selection of workers

Advertising and

promotion

Start of operation

Chapter IV

Marketing Aspect

A. Objectives

1. To determine if the proposed business is feasible in the chosen market

2. To determine the target market

3. To determine the size, nature and growth of total demand for the product.

4. To understand the market place and costumer needs and wants.

B. Plan of Distribution

The Three Rice Retailer decided to distribute product through retailing in a

store and delivery system, such as home delivery and free delivery to the volume

costumer to increase sale. This will help the promotion and introduction of the

product that will surely give immediate growth of business.

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C. Market Segmentation

a. Target Market Strategy

Three Rice Retailer will focus on the needs of markets especially to

the households near the location. Three Rice will also focus in the area

where the target market is identified.

b. Market Needs

The location is a good place for the business, the Pulang Lupa Dos

is a residential and commercial area there is so many businesses and

houses situated near the location as evidence many establishment are

situated such as convenient store, laundry shop and subdivision.

c. Market Trends

Commercial businesses trending in this area have a strong demand

due to needs of people basic needs such as food. As evidence that

there is a strong demand of food in this area is that the increasing

population, the increase in population means increase in demand.

d. Market growth

Commercial Businesses have a good performance in Pulang Lupa

Dos, businesses became stable and have a high growth of income this

is because of a increasing population in the area.

D. Competitive Edge

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Determining the competitive edge of the business against the competitors

will help the business to improve the products and services that the business

offered.

Since the business Three Rice Retailer is a large rice retailer in Pulang

Lupa Dos, the business must have more back up stocks of rice compare with the

competitors, the firm also offers many varieties of rice. The proponents also offer

free delivery to volume costumer.

E. Marketing Strategy

a. Positioning statement

Three Rice Retailer is a rice retailer that offers many variety of rice for the

costumer to have choices in buying rice. Three Rice Retailer is the only rice

retailer in the Barangay Pulang LUpa Dos to offer free rice delivery that helps

the customers to maximize their time.

b. Pricing Strategy

Setting the right price is a crucial step toward achieving the profit. Three

Rice Retailer is in business to make a profit, but figuring out what and how to

price a product may not come easily.

Three Rice Retailer depends its price with the production costs mark-up

which is 20% of the supplier.

c. Promotion Strategy

Advertising and promotional programs are one of the essential factors that

the business should take care of. The rate of the popularity of one’s firm

depends on how it is introduce to the market. It is very important that the

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management will have effective and informative advertisement and

promotional program to be able to get the attention of its potential buyers.

These are the promotional strategies that the business will be using:

1. Flyers These promotional papers will be distributed to the public to increase the

popularity of the business.

2. TarpaulinThese promotional material will be use to expand the exposure of the

business, it will be posted to the public area to attracts more potential customers.

d. SWOT ANALYSIS

Strengths Weaknesses

1. Accessible location

2. Product quality

3. A high demand

4. Offered free delivery

1. Unrecognized brand

2. Small store sized and inability to find

expansion

3. Shop name is not well known.

Opportunities Threats

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1. Increasing population

2. Opportunity to purchase a smaller

retailer to increase market share.

1. Entry of new competitors

2. Natural calamities

3. Price wars among key competitors

4. Farming cost increase

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F. Demand Analysis

The target markets of the business are the households in Barangay Pulang Lupa

Dos, Las Piñas City where the business located.

To get the demand for the project, the proponents used questionnaires to gather

information. The Slovin’s formula and systematic random sampling method were used to

get the sample size.

The proponents divided the population by the household size of five (5) to get the

total number of households in Barangay Pulang Lupa Dos, Las Piñas City.

Number of households = population ÷ household size

Name of Barangay Population Household Size No. of Households

Pulang Lupa Dos 32,252 5 6,450

Total 32,252 5 6,450

To get the Sample Size:

Slovin’s formulan=N

1+N e2

Where: n= Sample Size

N=Total Population

e= Margin of Error (5%)

Computation for Sample Size:

n= 6,450

1+6,450 (0.05)2

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n=377

1. Average Peso Consumption Per Month

Average Peso consumption = average time × average budget

a. Average times that respondents buy rice in a week:

Ch oice× percentage×Sample¿¿ sample¿¿¿¿

Number of Times Percentage Sample Size Result

Once 81% 377 0.81

Twice 13% 377 0.26

Thrice 6% 377 0.18

Total 100% 1.25

b. Average peso consumption of respondents spent weekly:

Choice× percentage×Sample¿¿ sample¿¿¿¿

Budget per

month

Ave. of weekly budget Percentage Sample Size Result

200 and below 200 4% 377 8.00

201-400 300.50 7% 377 21.04

401-600 500.50 19% 377 95.10

601-800 700.50 31% 377 217.16

801- 1000 900.50 28% 377 252.14

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Average time: Once (1) a week



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1001 and above 1001 11% 377 110.11

Total 100% 703.55

c. Average peso consumption per month:

= 1 × 703.55

= 703.55 x 4 (No. of week in a month)

= 2,814.20

2. Prior and Projected Population

The table shows the actual number of population within Pulang Lupa Dos,

Las Piñas City based on the growth rate of Las Pinas City according to

National Statistics Office. The growth rate is (1.57%) as of 2010.

a. The Prior Years:

present population1+rate of increase

Year Computation Number of PopulationNumber

of Households

2010 - 30,779 6,156

2009 30,779 ÷1.0157 30,303 6,061

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Average Budget per week: 703.55

Average Peso consumption per Month: P 2,814.20



Fax : (02) 805-85-22

2008 30,303 ÷ 1.0157 29,835 5,967

2007 29,835÷ 1.0157 29,374 5,875

2006 29,374÷ 1.0157 28,920 5,784

a. For projected years:

present population×rate of increase+ present population

Year Computation Projected populationNumber

of Households

2011 30,779 × 0.0157 + 30,779 31,262 6,252

2012 31,262 × 0.0157 + 31,262 31,753 6,351

2013 31,753× 0.0157+ 31,753 32,252 6,450

2014 32,252× 0.0157+ 32,252 32,758 6,552

2015 32,758× 0.0157+ 32,758 33,272 6,654

2016 33,272× 0.0157+ 33,272 33,794 6,759

2017 33,794× 0.0157+ 33,794 34,325 6,865

2018 34,325× 0.0157+ 34,325 34,864 6,973

3. Total Demand in Peso

For 2014 = present number of population × Average peso consumption per

month × number of month in a year

= 6,552 × 2,814.20× 12

= 221,263,660.80

Page | 39 Total Demand in Peso for 2014: 221,263,660.80



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Total Demand in Peso

Prior and Projected total Demand in Peso

2006-2018

YearTotal Number of households

Average peso consumption

per month

No. of month in a year

Total Demand

2006 5,784 2,814.20 12 195,327,993.60

2007 5,875 2,814.20 12 198,401,100.00

2008 5,967 2,814.20 12 201,507,976.80

2009 6,061 2,814.20 12 204,682,394.40

2010 6,156 2,814.20 12 207,890,582.40

2011 6,252 2,814.20 12 211,132,540.80

2012 6,351 2,814.20 12 214,475,810.40

2013 6,450 2,814.20 12 217,819,080.00

2014 6,552 2,814.20 12 221,263,660.80

2015 6,654 2,814.20 12 224,708,241.60

2016 6,759 2,814.20 12 228,254,133.60

2017 6,865 2,814.20 12 231,833,796.00

2018 6,973 2,814.20 12 235,480,999.20

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F. Supply Analysis

1. Average profit per day

This is the average revenue earned per day of all the existing competitors computed as follow:

average profit per day= total profitnumber of competitors

Competitors Daily profit

Silver Rice Store 25,000

Paul John Rice Store 20,000

Total Revenue 45,000

Average profit per day ¿ 45,0002

¿22,500.00

2. Average Profit Per Day of Prior and Projected Years

The proponents assumed the 2% rate of increase in average revenue per

day, computed as follows:

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Average profit per day: P 22,500.00



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a. For prior year:

present average revenue per day1+rate of increase

Year Computation Average revenue per day

2013 - 22,500.00

2012 22,500.00÷ 1.02 22,058.82

2011 22,058.82÷ 1.02 21,626.29

2010 21,626.29÷ 1.02 21,202.25

2009 21,202.25÷ 1.02 20,786.52

2008 20,786.52÷ 1.02 20,379.00

2007 20,379.00÷ 1.02 19,979.41

2006 19,979.41÷ 1.02 19,587.66

b. For projected year:

present average revenue per day ×(1+rate of increase)

Year ComputationProjected revenue per

day

2014 22,500.00× 1.02 22,950.00

2015 22,950.00× 1.02 23,409.00

2016 23,409.00× 1.02 23,877.18

2017 23,877.18× 1.02 24,354.72

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2018 24,354.72× 1.02 24,841.81

2. Number of Competitors Prior and Projected Years

The proponents assumed a 2% rate of increase on the number of

competitors in a year, computed as follow:

a. For prior years:

present numberof competotors1+rate of increase

Year Computation Number of competitors

2013 - 2

2012 2÷ 1.02 1.96

2011 1.96÷ 1.02 1.92

2010 1.92÷ 1.02 1.88

2009 1.88÷ 1.02 1.84

2008 1.84÷ 1.02 1.80

2007 1.80÷ 1.02 1.76

2006 1.76÷ 1.02 1.73

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b. For projected years:

present number of competitors×(1+rate of increase)

Year Computation Number of competitors

2014 2× 1.02 2.04

2015 2.04× 1.02 2.08

2016 2.08× 1.02 2.12

2017 2.12× 1.02 2.16

2018 2.16× 1.02 2.20

3. Total Number of Days that the Competitor Serve the Target Market

CompetitorsNumber of days open in a

weekSilver Rice Store 7Paul John Rice Store 7

Total 14

Average number of day open in a week = total numberof days opentotalnumber of competitors

= 142

= 7 days

Number of days open = average of days open in a year × number of week in a year

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= 7 days × 52 week

= 364 days

4. Total Supply in Peso

For 2014 = present number of competitors × average revenue per day × Number of days

serving the target market

= 2 × 22,950× 364 days

= 16,707,600.00

Total Supply in Peso

2006-2018

YearNumber of competitors

Average revenue per day

(P)

Number of day in a year

Total Supply

2006 2 19,587.68 364 14,259,831.04

2007 2 19,979.43 364 14,545,025.04

2008 2 20,379.02 364 14,835,926.56

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Total Supply in Peso for 2014: P 16,707,600.00



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2009 2 20,786.60 364 15,132,644.80

2010 2 21,202.25 364 15,435,238.00

2011 2 21,626.29 364 15,743,939.12

2012 2 22,058.82 364 16,058,820.96

2013 2 22,500.00 364 16,380,000.00

2014 2 22,950.00 364 16,707,600.00

2015 2 23,409.00 364 17,041,752.00

2016 2 23,877.18 364 17,382,587.04

2017 2 24,354.72 364 17,730,236.16

2018 2 24,841.81 364 18,084,837.68

H. DEMAND AND SUPPLY ANALYSIS

1. Demand and Supply Gap

demand∧supply gap=total demand∈peso−total supply∈peso

= 221,263,660.80 - 16,707,600.00

= 204,556,060.80

2. Opportunity Rate

Opportunity Rate=demand∧supply gaptotal demand∈ peso

×100

= 204,556,060.80221,263,660.80

×100

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Demand and Supply Gap for 2014: P 204,556,060.80



Fax : (02) 805-85-22

= 92.45%

Demand and Supply Gap and Opportunity Rate

2006-2018

Year Total Demand Total SupplyDemand and Supply Gap

Opportunity rate

2006 195,327,993.60 14,259,831.04181,068,162.6

092.70%

2007 198,401,100.00 14,545,025.04183,856,075.0

092.67%

2008 201,507,976.80 14,835,926.56186,672,050.2

092.64%

2009 204,682,394.40 15,132,644.80189,549,749.6

092.61%

2010 207,890,582.40 15,435,238.00192,455,344.4

092.58%

2011 211,132,540.80 15,743,939.12195,388,601.7

092.54%

2012 214,475,810.40 16,058,820.96198,416,989.4

092.51%

2013 217,819,080.00 16,380,000.00201,439,080.0

092.48%

2014 221,263,660.80 16,707,600.00 204,556,060.8 92.45%

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Opportunity Rate for 2014: 92.45%



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0

2015 224,708,241.60 17,041,752.00207,666,489.6

092.42%

2016 228,254,133.60 17,382,587.04210,871,546.6

092.38%

2017 231,833,796.00 17,730,236.16214,103,559.8

092.35%

2018 235,480,999.20 18,084,837.68 217,396,161.5 92.32%

2019 239,161,972.80 18,446,537.20220,715,435.6

092.29%

There is 92.45% opportunity rate for 2014. This percentage can be the

potential market of the business.

3. Market Share

Market share is computed by multiplying the demand and supply gap to

the percentage of willingness of the respondents resulted from the conducted

survey.

Market share=demand∧supply gap× percentage of willingness ¿204,556,060.80 x 90%

= 184,100,454.70

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Market Share

2006-2018

YearDemand and Supply Gap

Percentage of Willingness

Market Share

2006 181,068,162.60 90% 162,961,346.30

2007 183,856,075.00 90% 165,470,468.00

2008 186,672,050.20 90% 168,004,845.20

2009 189,549,749.60 90% 170,594,775.00

2010 192,455,344.40 90% 173,209,810.00

2011 195,388,601.70 90% 175,849,742.00

2012 198,416,989.40 90% 178,575,291.00

2013 201,439,080.00 90% 181,295,172.00

2014 204,556,060.80 90% 184,100,455.00

2015 207,666,489.60 90% 186,899,841.00

2016 210,871,546.60 90% 189,784,392.00

2017 214,103,559.80 90% 192,693,204.00

2018 217,396,161.50 90% 195,656,545.40

4. Market Share Rate

Market share rate is computed as follows:

Market share rate= market sharetotal demand∈ peso

×100

Page | 49

Market Share for 2014: P 184,100,454.70



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¿184,100,454.70221,263,660.80

×100

= 83.20%

Market Share Rate

2006-2018

Year Market Share Total DemandPercentag

eMarket

Share Rate

2006 162,961,346.30 195,327,993.60 100% 83.42%

2007 165,470,467.50 198,401,100.00 100% 83.40%

2008 168,004,845.20 201,507,976.80 100% 83.37%

2009 170,594,774.60 204,682,394.40 100% 83.34%

2010 173,209,810.00 207,890,582.40 100% 83.31%

2011 175,849,741.50 211,132,540.80 100% 83.28%

2012 178,575,290.50 214,475,810.40 100% 83.26%

2013 181,295,172.00 217,819,080.00 100% 83.23%

2014 184,100,454.70 221,263,660.80 100% 83.20%

2015 186,899,840.60 224,708,241.60 100% 83.17%

2016 189,784,391.90 228,254,133.60 100% 83.14%

2017 192,693,203.80 231,833,796.00 100% 83.11%

2018 195,656,545.40 235,480,999.20 100% 83.08%

Opportunity Rate and Market Share Rate Difference

2006-2018

Year Opportunity rate Market Share Rate Difference

2006 0.9269 0.8342 0.09

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Market Share Rate for 2014: 83.20%



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2007 0.9266 0.8340 0.09

2008 0.9263 0.8337 0.09

2009 0.9260 0.8334 0.09

2010 0.9257 0.8331 0.09

2011 0.9254 0.8328 0.09

2012 0.9251 0.8326 0.09

2013 0.9247 0.8323 0.09

2014 0.9244 0.8320 0.09

2015 0.9241 0.8317 0.09

2016 0.9238 0.8314 0.09

2017 0.9235 0.8311 0.09

2018 0.9232 0.8308 0.09

This table shows the difference between the opportunity rate and market

share rate. From 2006 to 2013, the difference rate is 9% and will still be 9% even

if the business starts on 2018.

This means that the potential market for the rice retailing business will still

be the same even if the Three Rice Retailer will enter in the industry. At the end of

2018 there is still 9% potential market for the business.

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Survey Results and Data Analysis:

Distribution of questionnaire to the respondents according to age

No. of respondents Percentage

15-20 18 5%

21-30 49 13%

31-40 117 31%

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41-50 122 32%

51-60 67 18%

61-70 3 1%

71 And above 1 0%

Total 377 100%

5%

13%

31%32%

18%

1%0%

15-20 21-30 31-40 41-5051-60 61-70 71 and above

Analysis

Out of three hundred seventy-seven (377) respondents, five percent (5 %) of

them is on the age of fifteen to twenty (15-20), thirteen percent (13%) of them is on

the age of twenty-one to thirty (21-30), thirty-one percent (31%) of them is on the age

of thirty-one to forty (31-40) , thirty-two percent (32%) of them is on the age of forty-

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one to fifty (41-50), eighteen percent (18%) of them is on the age of fifty-one to sixty

(51-60), one percent (1%) of them is on the age of sixty-one to seventy (61-70) and

zero percent (0%) of them is on the age seventy-one (71) and above.

This simply means that the percentage levels of the respondent it occur that

buyers ranging from thirty-one to fifty (31-50) are active in buying process.

Distribution of questionnaire to the respondents according to gender

No. of

respondent

s

percentage

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Male 147 39%

Female 230 61%

Total 377 100%

39%

61%

malefemale

Analysis

The survey finds out that the distribution of questionnaire to the respondents

according to gender that one hundred forty-seven (147) of them are male while two

hundred thirty (230) are female.

This means that majority of the respondents are female.

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1. Do you eat rice?

No. of

Respondents

Percentage

Yes 377 100%

No 0 0%

Total 377 100%

100% yes

Analysis

Based on the survey out of three hundred seventy-seven (377) respondents, one

hundred percent (100%) of them said that they eat rice.

The result of the survey implies that there is a strong demand of rice in the

location of the business and there is a big chance for business to earn more profit.

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2. How often do you eat rice in a day?

No. of Respondents Percentage

Once 5 1%

Twice 100 27%

Thrice 200 53%

Four times and above 72 19%

Total 377 100%

1%

27%

53%

19%

once twice thrice four and above

ANALYSIS

The table and graph above shows that majority of the respondents, which is fifty-

three percent (53%) of them eat rice three times a day, twenty-seven percent (27%) of

them eat twice a day, nineteen percent (19%) of them said they eat rice four times and

above in a day and one percent (1%) of them said that they eat once a day.

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The result of the survey shows that many of the respondents eat rice three times

a day. This means that there is a biggest opportunity to put a business because of the

high demand in the location.

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3. Do you buy rice?


Yes 325 86%

No 52 14%

Total 377 100%

86%

14%

yesno

Analysis

The table and graph above shows that out of three hundred seventy-seven (377)

respondents, three hundred twenty-four (324) of them or eighty-six (86%) said they buy

rice and fifty-two (52) or fourteen percent 14% said they don’t buy rice.

As the result s, the proponents concluded that the business have many potential

customer. It will help the business to earn more profit.

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4. How often do you buy rice in a week?

No. of Respondents Percentage

Once 306 81%

Twice 49 13%

Thrice 42 6%

Total 377 100%

81%

13%

6%

OnceTwiceThrice

Analysis

The table and graph above shows that the majority of the respondent or eighty

one percent (81%) of them said that they buy rice once in a week, thirteen percent (13%)

of them said that they buy rice twice in a week and six percent (6%) said that they buy

rice thrice in a week.

The result of the survey shows that the business must operate seven (7) days a

week to serve customers. Since, majority of the respondents buy rice once a week, the

business should have enough supplies to meet the demand of the customers.

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5. What kind of rice do you buy?

Kinds of Rice No. of respondents Percentage

Denorado 42 11%

Special denorado 28 7%

Senandomeng 84 22%

Premium

Senandomeng

41 11%

Milagrosa 28 7%

Sampaguita 6 2%

Maharlika 6 2%

Ifugao 2 1%

Jasmine 20 5%

NFA 4 1%

C4 3 1%

Angelika 41 11%

Super angelika 32 9%

Wag Wag 28 7%

Malagkit 4 1%

Brown Rice 5 1%

Black rice 3 1%

Total 377 100%

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11%

7%

22%

11%7%2%

2%1%

5%1%1%

11%

9%

7%

1% 1% 1%Denorado Special DenoradoSenandomengPremium SenandomengMilagrosaSampaguitaMaharlikaIfugaoJasmineNFAC4AngelikaSuper AngelikaWag-WagMalagkitBrown riceBlack Rice

Analysis

The table and graph above shows that out of three hundred seventy seven (377)

respondents, eleven percent (11% )of them buy Denorado, seven percent (7%) of

them said that they buy Special Senandomeng, twenty-two percent (22%) of them

said that they buy Senandomeng, eleven percent(11%) of them buy Premium

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Senandomeng, seven percent (7%) of them buy Milagrosa, two percent (2%) of them

said that they buy Sampaguita, two percent (2%) of them said that they buy

Maharlika, one percent (1%) of them said that they buy Ifugao rice,

five percent (5%) of them said that they buy Jasmine, one percent (1%) of them said

they buy NFA rice, one percent (1%) of them said they buy C4, eleven percent (11%)

of them said that they buy Angelika, nine percent (9%) of them buy super angelica,

seven percent (7%) of them buy Wag Wag, one percent (1%) of them said they buy

Malagkit, brown rice and black rice.

The result of the survey implies that the firm should focus on the top selling rice

like Denorado, Special Denorado, Senandomeng, Premium Senandomeng, Milarosa,

Angelika and super Angelika. The firm must increase the supplies of top seller and

reduces those less known.

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6. How much do you spend in rice per week?

No. of respondent Percentage

200 and below 15 4%

201-400 26 7%

401-600 72 19%

601-800 117 31%

801-1000 107 28%

1001 and above 40 11%

Total 377 100%

4%7%

19%

31%

28%

11%

200 and below 201-400 401-600601-800 801-1000 1001 and above

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ANALYSIS

out of three hundred seventy-seven (377) respondents, four percent (4%) of them

spend two hundred (200) pesos and below for rice , seven percent (7%) of them spend

from two hundred-one to four hundred (201-400) pesos for rice, nineteen percent (19%)

of them spend from four hundred-one to six hundred (401-600) pesos for rice, thirty-one

percent (31%) of them spend from six hundred-one to eight hundred (601-800) pesos for

rice, twenty-eight percent (28%) of them spend from eight hundred-one to one thousand

(801-1000) pesos for rice, and eleven percent (11%) of them spend from one thousand-

one (1001) pesos and above for rice.

The result of the survey will help the business to determine the weekly sales.

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7. How many kilo/s of rice do you usually buy in a week?

Choices No. of respondents Percentage

1-5 Kilograms 15 4%

6-10 Kilograms 27 7%

11-20 Kilograms 104 28%

21-25 Kilograms 179 47%

26-50 Kilograms 40 11%

51 Kilograms and

above

12 3%

Total 377 100%

4%7%

28%

47%

11%

3%

1-5 Kilograms 6-10 Kilograms 11-20 Kilograms21-25 Kilograms 26-50 Kilograms 51 Kilograms and above

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Analysis

Based on the table and graph above, out of three hundred seventy-seven (377)

respondents, four percent (4%) of them said that they usually buy rice from (1-5)

kilograms, seven percent (7%) of them said that they buy rice from (6-10) kilograms,

twenty eight percent (28%) of them said that they buy rice from (11-20) kilograms, forty

seven percent (47%) of them said that they buy rice from (21-25) kilograms, eleven

percent (11%) of them said that they buy rice from (26-50) kilograms and three percent

(3%) of them said that they buy rice from (51 kilograms and above)

The results of the survey means that majority of the respondents said that they

buy rice ranging from twenty-one to twenty-five (21-25) kilograms. This means that the

business must have more supplies to cover the demand of the customers.

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8. How much per kilo of rice do you buy?


30 and below 21 6%

31-35 42 11%

36-40 102 27%

41-45 121 32%

46-50 64 17%

51-55 15 4%

56-60 8 2%

61 and above 4 1%

Total 377 100%

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6%

11%

27%

32%

17%

4%

2% 1%

25-30 31-35 36-40 41-4546-50 51-55 56-60 61 and above

Analysis

Based on the table and graph above, out of three hundred seventy-seven (377)

respondents, six percent (6 %) of them said that they spend from thirty (30) pesos and

below per kilo of rice, eleven percent (11%) of them said that they spent from thirty-one

to thirty-five (31-35) pesos per kilo of rice, twenty-seven percent (27%) of them said that

they spend from thirty-six to forty (36-40) pesos per kilo of rice, thirty-two percent (32%)

of them said that they spend from forty-one to forty-five (41-45) pesos per kilo of rice,

seventeen percent (17%) of them said that they spend from forty-six to fifty (46-50)

pesos per kilo of rice, four percent (4%) of them said that they spend from fifty-one to

fifty-five (51-55) pesos per kilo of rice, two percent (2%) of them said that they spend

from fifty-six to sixty (56-60) pesos per kilo of rice and one percent (1%) of them said that

they spend from six-one (61) pesos and above per kilo of rice.

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This means that majority of the customers spend from thirty-six to fifty (36-50) per

kilo in buying rice. The business should offer this range of prices of rice. The result will

also help the pricing and mark-up of the product.

9. Where do you buy rice?

No. of

respondents

Percentage

Supermarket 41 11%

Rice retailer 100 26%

Sari-sari store 128 34%

Public market 108 29%

Total 377 100%

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11%

27%

34%

29%

Super Market Rice Retailer Sari-sari Store Public Market

Analysis

Based on the table and graph above, out of three hundred seventy seven (377)

respondents, eleven percent (11%) of them said that they buy rice in the supermarket,

twenty-six (26%) of them said that they buy rice in rice retailer, thirty-four percent (34%)

of them said that they buy rice in sari-sari store and twenty-nine percent (29%) of them

said that they buy rice in wet market.

This implies that the competition of selling rice is very close; this result will help

the firm to make a good management and marketing strategy to attract more customers.

10.For how many persons do you usually buy rice?

No. of respondent Percentage

1 20 5%

2-3 112 30%

4-5 180 48%

6-8 60 16%

9-10 4 1%

11 and above 1 0%

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Total 377 100%

5%

30%

48%

16%

1%0%

1 Person2-3 Persons4-5 Persons6-8 Persons9-10 Persons11 Persons and above

Analysis

Based on the table and graph above, out of three hundred seventy seven

respondents, five percent (5%) of them said that they buy rice for one (1) person, thirty

percent (30%) of them said that they buy for two to three (2-3) persons, forty percent

(48%) of them said that they buy rice for four to five (4-5) persons, 16% of them said that

they buy rice for six to eight (6-8) persons, one percent (1%) of them said that they buy

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rice for nine to ten (9-10) persons and zero percent (0%) of them said that they buy rice

for eleven (11) persons.

This results shows that the majority of the respondents buy rice for 4-5 persons in

the family. This only means that there is a high demand of rice in the location because of

the high consumption of rice per family.

11.Do you buy imported rice?

Respondents Percentage

Yes 61 16%

No 316 84%

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Total 377 100%

16%

84%

a. Yesb. No

ANALYSIS

Based on the table and graph above, out of three seventy six (376) respondents,

sixteen percent (16%) of them buy imported rice, and eighty-four percent (84%) do not

buy imported rice.

The result of the survey means that the business must focus in selling local rice

rather than selling imported rice.

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12.What are characteristics of rice do you buy?


Smell 129 34%

Swelling 40 11%

Color 108 29%

Grain type 32 8%

Texture 24 6%

Appearance 44 12%

Total 377 100%

34%

11%29%

8%

6%

12%

Smell Swelling Color Grain Type Texture Apperance

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ANALYSIS

Based on the tables and graph above, out of three hundred seventy–seven

respondents (377) shows that thirty-four percent (34%) of the respondent consider the

smell in buying rice, eleven percent (11%) consider the swelling, twenty-nine percent

(29%) consider the color, eight percent (8%) consider the grain type, six percent (6%)

consider the texture, and twelve percent (12%) consider the appearance in buying rice.

The highest percentages are color and smell; this implies that these are the primary

characteristics that customers consider in buying rice. In order to gain the market

stability, the business should offer high quality rice.

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13.What color of rice do you buy?


White 367 98%

Brown 3 1%

Red 0 0%

Black 5 1%

Total 377 100%

98%

1%1%

a. Whiteb. Brownc. Redd. Black

ANALYSIS

Based on the tables and graph above, out of three hundred seventy-seven (377)

respondents, ninety-eight percent (98%) are usually buy white rice, one percent (1%)

buy brown rice, and also one percent (1%) of the respondents buys black rice.

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The result implies that the firm should have more supply of white rice in order to

meet the needs of customer.

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14.What grain of rice do you buy?

respondents Percentage

Long grain 181 48%

Medium Grain 102 27%

Short grain 90 24%

Broken grain 4 1%

Total 377 100%

48%

27%

24%

1%

Long Grain Medium Grain Short Grain Broken Grain

ANALYSIS

Based on the tables and graph above, out of three hundred seventy-seven

respondents(377), Forty-eight (48%) of them usually buy long grain rice, twenty-seven

percent (27%) usually buy medium grain, twenty-four percent (24%) of the respondents

buy short grain rice, and one percent (1%) of the respondents buy broken grain rice.

This implies that the business should supply more long grain rice and medium in

order to meet the needs of the customers.

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15.Do you consider the price of rice do you buy?


Yes 353 94%

No 24 6%

Total 377 100%

94%

6%

YesNo

ANALYSIS

Based on the table and graph above, out of three hundred seventy–seven

respondents (377), that ninety-four percent (94%) of the respondents considered the

price in buying rice, and six percent (6%) of respondents do not considered the price in

buying rice.

The business should offer good quality of rice but affordable in or order to meet

the demand of the customers.

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16.What do you consider in buying rice?


Price 193 51%

Quality 136 36%

Brand name 48 13%

Total 377 100%

51%

36%

13%

PriceQualityBrand name

ANALYSIS

Based on the tables and graph above, out of three hundred seventy-seven (377)

respondents, fifty-one percent (51%) of them considered the price in buying rice, thirty-

six percent (36%) considered the quality, and thirteen percent (13%) for the brand name.

It means that many of the costumers considered the price and quality of rice than

the brand. This means that the business should offer high quality rice and affordable.

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17.What type of rice do you usually buy?


Well milled rice 209 55%

Premium rice 156 42%

Fancy rice 12 3%

Total 377 100%

55%

42%

3%

Well milled ricePremium riceFancy rice

ANALYSIS

Based on the tables and graph above, out of three hundred seventy- seven (377)

respondents fifty-five percent (55%) of the respondents buy well milled rice, forty-two

percent (42%) of the respondents buy premium rice , and three percent (3%) buy fancy

rice.

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This implies that the business should sell more well milled and premium rice to

meet the customer’s satisfaction.

18.Do you want your rice to be delivered?

Respondent Percentage

Yes 273 72%

No 104 28%

Total 377 100%

72%

28%

Yes No

ANALYSIS

Based on the table and graph above, out of three hundred seventy- seven (377)

respondents, seventy two percent (72%) of the respondents wants to deliver their rice,

and twenty eight percent (28%) don’t want their rice to deliver.

This implies that the business should offer a free delivery service in order to

attract more customers and to meet the needs of customers.

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19.Do you like to have a rice retailer in your community?


Yes 373 99%

No 4 1%

Total 377 100%

99%

1%

YesNo

ANALYSIS

Based on the table and graph above, out of three hundred seventy-seven

respondents (377), ninety–nine percent (99%) wants to have a rice retailer in their

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community, and only one percent (1%) doesn’t want to have a rice retailer in their

community.

This results shows that the business have a big chance to capture the market,

because almost 100% of the respondents want to have a rice retailing company in their

community.

20.Are you willing to patronize our products if we are going to put up a rice

retailing store in your community?


Yes 339 90%

No 38 10%

Total 377 100%

90%

10%

Yes No

ANALYSIS

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Based on the table and graph above, out of three hundred seventy-seven

respondents (377), ninety percent (90%) are willing to patronize the product, and ten

percent (10%) are not willing to patronize the product.

This indicates that putting up a rice store will become successful because majority

of the respondents would like to patronize the product of the business.

CHAPTER V

Socio-Economic Aspect

Contributions to the Philippine Economy

A. GovernmentSince the business will be registered, it will pay taxes to the government in

order to operate legally. These taxes paid to the government will be used in building services and public infrastructure that would benefit the people.

B. SocietyThe business is also concerned with the health of our customers. We are

not just after profit, but we are also after satisfaction and safety of our customers. The business offers a good quality and healthy rice that can be eaten by our customers.

The business is also offering affordable and free delivery rice to attract customers and to be able to build customer loyalty and competitive advantage. From that, the customers will be able to experience to eat rice that is good in taste and affordable which can make them to save money.

C. Labor/EmploymentThe business will also contribute the society. The Filipino people will

benefit through employment. Since we need employees to fully operate the

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business, we will hire qualified applicants. This action will reduce the rate of unemployment in the Philippines.

The employees, by offering right salary and wages in exchange of their service, would increase the standard of living or at least satisfy their personal needs.

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Documents

Rice Retailer Company Final Paper