`DREAMER’S ICE CREAM: A FEASIBILITY STUDY

ON ICE CREAM PARLOR

A Feasibility Study
Presented to
The Faculty of the College of Business Administration
Divine Mercy College Foundation Inc.
Caloocan City

In Partial Fulfillment
of the Requirements for the Marketing Management Course
Business Feasibility Study
By:

Casimiro, Keizel F.
Dela Cruz, Alvin G.
Merejilla, Rogellyn S.
Reyes, Melanie F.
Romano, Pauline M.
Senobio, Anna Rowena F.
Umali, Jeramie C.

October 2015
 CHAPTER I

BACKGROUND OF THE STUDY

I. INTRODUCTION

No specific person has officially been credited with inventing ice cream. Its

origins date back as far as 200 B.C., when people in China created a dish of rice mixed

with milk that was then frozen by being packed in snow. The Chinese King Tang of

Shang is thought to have had over ninety “ice men” who mixed flour, camphor, and

buffalo milk with ice. The Chinese are also credited with inventing the first “ice cream

machine.” They had pots they filled with a syrupy mixture, which they then packed into

a mixture of snow and salt.

Other early ice cream-like confectionery indulgers include Alexander the

Great, who enjoyed eating snow flavored with honey. Emperor Nero Claudius Caesar of

Rome was said to have sent people up to the mountains to collect snow and ice which

would then be flavored with juice and fruit—kind of like a first century snow cone.

These early “ice creams” were obviously a luxury indulged in by the rich, as not

everyone had the ability to send servants up the mountains to collect snow for them.

Ice cream is a frozen food, typically eaten as a snack or dessert, usually made

from dairy products, such as milk and cream, and often combined with fruits or other

ingredients and flavors. It is typically sweetened with sucrose, corn syrup, cane sugar,

beet sugar, and/or other sweeteners typically; flavorings and colorings are added in

addition to stabilizers. The mixture is stirred to incorporate air spaces and cooled below
the freezing point of water to prevent detectable ice crystals from forming. The result is a

smooth, semi-solid foam that is solid at very low temperatures (<35 °F / 2 °C). It

becomes more malleable as its temperature increases.

In the Philippines, ice cream consumption usually peaks during the hot

summer months. Demand, however, is also stimulated by festivities, be it town fiestas or

birthday parties, making ice cream very much a part of every celebration. As such,

consumption of ice cream remains significant even during the rainy season. Since it is

strongly associated with joyful occasions, its consumption is also triggered whenever

individuals desire to reward themselves as it is an easily accessible indulgence.

Ice cream is one of the most favorite comfort food of Filipinos of all ages. Its

sweetness, the ecstatic flavor and overwhelming feeling that it gives, that you want to

have more. All of us had the same experience when it comes to Ice Cream and that is the

reason why we came up with this business. And that is to provide you, with the same

experience when you are enjoying your ice cream.

I. STATEMENT OF THE PROBLEM

Dreamer’s Ice Cream aims to answer the five (5) aspects of Feasibility Study:

1. MARKETING ASPECT

1.1 What makes the product unique from others?

1.2 What are the variants that are being offered?

1.3 Who is the target market?

2. MANAGEMENT ASPECT

2.1 What is the form of ownership of the business?

2.2 What are the policies being implemented by the business?

2.3 What are the legal requirements needed in putting up ice cream parlor?

3. TECHICAL ASPECT

3.1 What are the equipment/ supplies needed in the operation of the business?

3.2 What are the procedures in making the product?

4. FINANCIAL ASPECT

4.1 What is the starting capital of the business?

4.2 Is the business profitable or viable?
5. SOCIO-ECONOMIC ASPECT

5.1 What are the contributions of the business to the customers, employees,

community, economy and government?

II. SCOPE AND LIMITATION

Dreamer’s Ice Cream focuses on making and selling homemade ice cream

within Barangay 80 and Barangay 73, Caloocan City. The operation starts from 8:00 am

to 9:00 pm.

Dreamer’s Ice Cream limits itself on selling ice cream products only made

from store. It sells different kinds of fruit flavors like mango, ube, avocado, banana, and

strawberry. Classic flavors like vanilla, chocolate and cheese. Mixed flavors like peanut

butter, coffee, Choco crumble, chocolate chip, Neapolitan, Ube con Queso and Special

Flavors like vodka alcoholic ice cream, and chili ice cream.
III. SIGNIFICANCE OF THE STUDY

The feasibility study will be beneficial to the following:

CUSTOMERS – The results of the study will provide awareness to customers of how

they have to consume ice cream in a new different way that will truly satisfy their

cravings for ice cream.

GOVERNMENT – The results of the study will provide information on how much

would be the tax that is supposed to be collected by the government in putting up an ice

cream parlor business.

SUPPLIERS – The results of the study will inform them on how they are going to

improve the raw materials as well the other potential materials needed to make their

company grow.

BUSINESSMEN – The results of the study will give new ideas and information on how

to engage in an Ice Cream Parlor business.

FUTURE RESEARCHERS – The results of the study will provide future researcher

ideas that will set as a guide on how to achieve a good feasibility study.
IV. BUSINESS LOGO

The researchers named the business “Dreamers Ice Cream” Dreamers stands for

proponents themselves who dream of putting up an ice cream parlor.

The scoops of ice cream represent our main products being included in the logo to

make look attracting and at the same time appetizing in the eye of customers.

The pink color which is around represents our products’ sweetness while the blue

signifies coolness and happiness for yellow that customers would feel in eating ice cream.
V. LOCATION OF THE BUSINESS

Figure 1

Figure 1 shows the location of the business. The researcher decided to be situated

at #100 Samson Road, Barangay 80, Zone 7 District 1, Caloocan City. The business is

renting a commercial establishment. The proponents choose this location because it is

accessible to two (2) barangays and universities along the road.

VI. VISION, MISSION AND OBJECTIVES

Vision

Creating enjoyable moments for our customers by offering them tasteful,

high quality ice cream products.

Mission

Dreamer’s Ice Cream is dedicated to providing top quality ice cream

products and excellent services

Objectives

 To provide quality ice cream and an excellent setting space to our

customers.

 To capture the largest market share of ice cream market in the year 2020

through customer loyalty.

 CHAPTER II

METHODOLOGY AND PRESENTATION OF DATA

I. RESEARCH DESIGN

The Researchers used the descriptive method in gathering information that is

needed in the study. Descriptive method in research is a study designed to depict the

participants in an accurate way. The information is treated in a quantitative manner,

basing the design of research on a sample that gives answers generalizable to a reference

population. Researcher interacts with the participant, may involve surveys or interviews

to collect the necessary information.

II. RESEARCH RESPONDENTS

The Researchers gathered the primary data which can be acquired from the

responses of the people providing questionnaires from the vicinity of Caloocan city

which consist of two (2) barangays.

III. RESEARCH TECHNIQUE

The Researchers used simple random sampling technique in conducting the

research study, and each barangay has given an equal chance of being selected as a

subject.
IV. RESEARCH LOCALE

The researchers conducted the survey in Barangay 80, Barangay 73 Caloocan

City with 394 respondents.

V. RESEARCH INSTRUMENT

Survey method was utilized as a research technique. The Researchers

prepared nine (9) questions which comprise the customer’s profile and information on

customer’s taste and preferences. Survey is to ask a question or a series of question in

order to gather information about what most people do or think about something. A self-

made questionnaire was formulated by the researchers and validated by the feasibility

adviser.

Corrections were made and final questionnaire were distributed to the

respondents in Barangay 80, Barangay 73 at Caloocan City.

VI. DATA GATHERING PROCEDURES

The total population density in Barangay 80 and Barangay 73 was obtained

from their respective Barangay Halls.

 Table 1

Barangay

BARANGAY POPULATION

73 25,000

80 1,870

TOTAL 26,870
Sources: Barangay halls as of 2015

 The researchers used the Slovin’s Formula to determine the needed number of

respondents and divided the result thereof into two (2) Barangays.

 The researchers conducted the survey forms through the use of questionnaires.

 The researchers distributed the survey form to the two (2) Barangays.

 Respondents were given enough time to answer the entire question in the survey

questionnaire.

 The researchers thereafter tabulated and tallied the data.

VII. SAMPLE SIZE COMPUTATION

The researcher used the Slovin’s Formula to determine the number of

respondents.

Formula: n= ____N_____
1+Ne2

Where: N= the number of people who qualifies in the area study.

(Barangay 73, Barangay 80, Caloocan City)

n= number of needed respondents.

e= margin of error which is 5%

Solution: n= ______26,870___
1+ (26,870) (0.052)

n= 394
VIII. REPRESENTATION ANALYSIS AND INTERPRETATION OF DATA

QUESTIONNAIRE RESULTS

Table 2

Respondents within the vicinity of the business

RESPONDENTS FREQUENCY PERCENTAGE

Barangay 73 197 50%

Barangay 80 197 50%

TOTAL 394 100%

Table 2 and Figure 2 show that: all respondents have given a 50% or equal chance

to be participant to the survey.

Figure2

Respondents within the vicinity of the

business

Barangay 73
50% 50%

Barangay 80
 Table 3

Gender Profile of the Respondents

GENDER FREQUENCY PERCENTAGE

Female 216 55%

Male 178 45%

TOTAL 394 100%

Table 3 and Figure 3 show that the majority of respondents are females with 55%

and males with 45%.

Figure 3

Gender Profile of the Respondents

Female
45%

55%
Male
 Table 4

Age of Respondents

AGE FREQUENCY PERCENTAGE

1-10 y/o 1 0%

11- 20 y/o 263 67%

21-30 y/o 119 34%

31-40 y/o 4 1%

41-50 y/o 3 1%

51-60 y/o 1 0%

61-70 y/o 3 1%
TOTAL 394 100%

Table 4 and Figure 4 show that the majority of the respondents are from ages 11-

20 years old with 67%;21-30 years old with 34% ;while 1% from ages 31-40,41-50 and

61-70 and 1-10 years; and 51-60 years old got 0%.

Figure4

0%
Age of Respondents 1-10 y/o
1% 1% 1% 11- 20 y/o
0%
21-30 y/o
30% 31-40 y/o
41-50 y/o
67%
51-60 y/o
61-70 y/o
 Table 5

Respondents’ Status

STATUS FREQUENCY PERCENTAGE

Single 368 93%

Married 26 7%

Others(widow/widower) 0 0%
TOTAL 394 100%

Table 5 and Figure 5 show that majority of the respondents are single with 93%;

married with 7% and others with 0%. The business is more likely expect to have single

and married persons as its customers.

Figure 5

Respondents' Status
7%

Single

Married
93%
Others
 Table 6

Respondents Who Eat Ice Cream

DO YOU EAT ICE FREQUENCY PERCENTAGE

CREAM?

Yes 394 100%

No 0 0%
TOTAL 394 100%

Table 6 and Figure 6 illustrates that 100% of the respondents are eating ice cream.

Its shows that ice cream is one of the most favorite dessert and this is an opportunity for

the researchers.

Figure 6

Respondents Who Eat Ice Cream

0%

Yes No

100%
 Table 7

Frequency of Consumption

TIMES FREQUENCY PERCENTAGE

Once a week 137 35%

Weekends 115 29%

Once a month 76 19%

Everyday 44 11%

Others(twice a week) 22 6%
TOTAL 394 100%

Table 7 and Figure 7 show that the majority of respondents eat ice cream once a

week with 37%; while those during weekends with 29%; some choose to eat ice cream

once a month with 19% ; and 11% to those who eat everyday, while others ( twice a

week) with 6%.

Figure 7

Frequency of Consumption
6%
11%
19% Everyday
Once a week
35%
Weekends
29%
Once a month
Others
 Table 8

Places Where Respondents Usually Buy Ice Cream

PLACE FREQUENCY PERCENTAGE

Convenience Store 101 26%

Ice Cream Vendor 69 17%

Ice Cream Parlor 68 17%

Groceries Store 65 17%

Variety Store 51 13%

Super Market 40 10%

TOTAL 394 100%

Table 8 and Figure 8 illustrate the places where the respondents usually buy ice

cream; 26% purchase in the convenience store; 17% in ice cream vendor; 17% in ice

cream parlor; 17% in groceries Store, 17% in variety store and 10% in supermarket.

Figure 8

Places Where Respondents Usually Buy

Ice Cream
Convenience
10%
Ice Cream Vendor
13% 26%
Groceries store
17% 17% Variety store
17% Ice cream parlor
Super Market
 Table 9

Preferred Price for Buying Ice Cream

PRICE FREQUENCY PERCENTAGE

P20.01 - P30.00 148 37%

P30.01 and above 124 31%

P10.01– P20.00 85 22%

P5.00 – P10.00 37 9%
TOTAL 394 100%

Table 9 and Figure 9 show the preferred price of the respondents in buying ice

cream, P20.01 - P30.00 got the highest percentage with 37%; P30.01 and above with

31%; P10.01-P20.00 with 22%; and, 9% for P5.00 – P10.00.

Figure 9

Preferred Price for Buying Ice Cream

10%
32% P5.00-P10.00
22%
P10.01-P20.00
P20.01-P30.00
37% P30.00 and above
 Table 10

Preferred Days When Buying Ice Cream

DAYS FREQUENCY PERCENTAGE

Regular / Normal days 256 65%

Special Occasions (i.e., 130 33%

birthdays, Christening etc.)

Others ( pay day) 8 2%

TOTAL 394 100%

Table 10 and Figure 10 show that majority of the respondents buy ice cream on

regular days with 65%; while 33%, if there is special occasions and 2% on others (pay

day).

Figure 10

Preferred Days in Buying Ice Cream

2%

33% Regular / Normal days

Special occasions
65% Othes
 Table 11

Factors Considered in Buying Ice Cream

FACTORS FREQUENCY PERCENTAGE

Quality 136 35%

Brand name 116 29%

Price 66 17%

Cleanliness 65 16%

Others ( place ) 11 3%
TOTAL 394 100%

Table 11 and Figure 11 show the factors being considered by customers in buying

ice cream: 35% because of quality; 29% for brand name; 17% by reason of price; 16%

due to cleanliness; and, 3% for other reasons (place).

Figure 11

Factors Considered in Buying Ice Cream

3%

16% Quality
35%
Brand name
17% Price
Cleanliness
29% Others
 Table 12

Respondents Who Buy Ice Cream during Rainy Season

DO YOU BUY ICE

CREAM DURING FREQUENCY PERCENTAGE
COLD/RAINY
SEASON?

Yes 222 57%

No 172 43%
TOTAL 394 100%

Table 12 and Figure 12 show that the majority of the respondents’ still buy ice

cream during rainy season with 57% and 43% for those who do not.

Figure12

Respondents Who Buy Ice Cream During

Rainy Season

43% Yes No

57%
 Table 13

Preferred Flavors When Buying Ice Cream

FLAVORS FREQUENCY PERCENTAGE

Chocolate 149 38%

Mixed flavors (cookies n' cream, ube 119 30%

con Queso, etc.)
Vanilla 72 18%
Fruit Flavors (Mango, Avocado, Corn) 54 14%
TOTAL 394 100%

Table 13 and Figure 13 show the flavors preferred by the respondents, 38% for

chocolate; 30% preferred mixed flavors; 18% wants vanilla flavor and 14% choose fruit

flavors.

Figure 13

Preferred Flavor When Buying Ice Cream

14%
38%
18% Chocolate
Mixed flavors
Vanilla
30% Fruit Flavors
 Table 14

Willingness to Try A Newly Opened Ice Cream Parlor

WILLING TO TRY FREQUENCY PERCENTAGE

Yes 375 95%

No 19 5%
TOTAL 394 100%

Table 14 and Figure 14 illustrate the willingness of the respondents to try the

newly opened Ice Cream Parlor with 95%; while 5% are not. It shows the higher chances

of the business in gaining profit with the high percentage of willingness of respondents to

try a newly opened ice cream parlor.

Figure 14

Willingness to Try A Newly Opened Ice Cream

Parlor
5%

Yes No

95%
 Summary of Questionnaire Results

The researchers obtained 394 respondents using Slovin’s formula from 26,870

target populations that has been taken from two (2) Barangays at their respective

barangay halls. Based on the results that were tallied, majority of the respondents are

female and most of the respondents are single.

Results are likewise showed that all respondents are eating ice cream. Majority of

the respondents buy ice cream once a week and they preferred buying in a convenience

store. P20- P30 is the price that respondents spend in buying ice cream and they buy ice

cream on regular / normal days. Also, the factor that respondents considered in buying ice

cream is the quality, Respondents still buy ice cream even during rainy season. The result

showed that majority choose chocolate as their favorite flavor and majority of the

respondents are willing to try the newly opened “Dreamer’s Ice Cream” with 95%.