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