Chapter 1

Marketing Study

The market study is consisting of Product Description, Historical Data, Target Market,

Projected Demand, Projected Supply, Demand and Supply Gap, Sales Forecast and

also Marketing Program.

Product Description

In today’s world, innovation of products is a fast rising industry. Producers or

manufacturers always finds new product to introduce to the market. And the market in

return would like today’s new trends which gives entrepreneurs more chance of having

good business through the new product they innovates. Processed foods like hotdog,

tocino, longganisa and alike are into innovations. Before we are aware that a longganisa

is ground pork flavored and packed into the skin of a pig’s intestines.

But today, every region in the Philippines had their own versions of longganisa like the

Vigan longganisa, Lucban longganisa, Guinobatan longganisa and many more. This

shows how innovation of products is so fast. This feasibility study is trying to innovate

one of the Filipino’s favorite breakfast which is longganisa.. Unlike other longgnisa, this

feasibility study will create a new flavor of longganisa – the sweet skinless tilapia

longganisa.

The proponents chose tilapia because it has healthier benefits compared to pork or

chicken. According to Nutritionix.com, tilapia is healthier compared to pork. Calorie of

tilapia is 288 while pork has 451 calories. While the total fat of tilapia and pork is 6g and
20g respectively. Lastly, their cholesterol content also differs tilapia has only 130mg

while pork have 179mg.

Target Market

The target markets of the proposed business are the households in the barangays 1-10

which is covered by the Old Albay District, in Legazpi City. It has the potential of having

frequent customers since the proposed business is located in the heart of the City of

Legazpi and the Province of Albay. Likewise this area is the residences of the

proponents.
 Table 1

Historical Data of Population

Year

Barangay % n

2016 2017 2018 2019

1 - EM’s Bo. 921 938 953 966 29 104

2 – EM’s Bo. South 316 334 340 349 10 36

3 – EM’s Bo. East 288 198 201 206 6 21

4 – Sagpon 184 189 197 208 6 21

5 – Sagmin 179 181 188 190 6 21

6 - Bañadero 276 280 284 292 9 32

7- Baño 151 158 163 167 5 18

8 – Bagumbayan 442 459 477 492 15 53

9 – Pinaric 280 288 301 317 10 36

10 - Cabugao 101 116 120 124 4 14

Rizal

Total 3,138 3,141 3,224 3,311 100 356

Source: Office of the City Mayor, Legazpi City

Table 1, show that there in an increase of the number of house hold in the

barangays of 1 - 10, from year 2016 to year 2019. To get the prorated population the

current population per barangay is divided to the total number of population.

Likewise the proponent used the Sloven’s Formula to determine the prorated

allocation of the respondents.

Where:

N = the number of people who qualify in the area of study

e = margin of error which is 5%

n = number of needed respondents

Formula:

n. = N .

1+Ne2

Solution:

3,311
1+3,3311(0.05)2

= 3,311
1+3,3311(0.0025)

= 3,311
9.28

= 356.78

n = 357

Table 2
 Historical Data of Household

Year Household

2016 3,138

2017 3,141

2018 3,224

2019 3,311

Source: Office of the City Mayor, Legazpi City

Puro, Lamba, Dap-Dap, Victory Village, and Rizal

Table 2, shows the total number of household per year from 2016 to 2019 from

barangays 1-10.

Table 3

Projected Household

Year Household

2020 3,330

2021 3,349

2022 3,368

2023 3,387

2024 3,406

Table 3, shows the projected number of household for the 10 barangays. To get

the projected number of household the researcher used the arithmetic straight-line

method given the formula of:

Yn – Y 1
a=
 n-1

3,311 – 3,138
=
10 – 1

173
=
9

= 19.22

a = 19

Therefore each year there will be an increase of 19 household populations.

Projected Demand
 One of the most important factors that could affect the feasibility study of the

business is the demand. It involves the identification of needs and wants of the target

market so as to determine whether they are willing to avail the product of the proposed

business.

Table 4

Projected Demand of the Product

Year Household Market Target Target Market Total

Acceptability Market ave per capita Demand
consumption

2020 3,330 93% 3,069 360 1,104,840

2021 3,349 93% 3,115 360 1,121,400

2022 3,368 93% 3,132 360 1,127,520

2023 3,387 93% 3,150 360 1,134,000

2024 3,406 93% 3,168 360 1,140,480

Table 4, shows the increase of household yearly. Multiplying the target market

and the target market average per capita consumption will give you the yearly projected

demand. The percentage of market acceptability is 93%, it was get and done through

the given questionnaire, answering the question “If Skinless Tilapia Longganisa will be

offered to the market, are you willing to buy?” 331 answered yes, out of the 356

respondents.
 Table 5

Competitors

Competitor Daily Weekly Monthly Yearly

Pampanga’s Best Longganisa 250 1,500 6,000 72,000

Guinobatan Longganisa 100 600 2,400 28,800

Local Market Longganisa 380 2,280 9,120 109,440

Argentina Longganisa 60 360 1,440 17,280

CDO Longganisa 75 450 1,800 21,600

King Sue Longganisa 40 240 960 11,520

Total 905 5,430 21,720 260,640

Source: Albay Public Market

Table 5, shows the total number of customers from the direct competitors of the

proposed business. The figures above are the gathered data by the proponent. By asking,

“what is the estimated number of your daily customer” to the owner of the establishments in

Albay Public Market Meat Section. To get the weekly number of supply the daily supply is

multiplied to six (days), for monthly supply the weekly supply is multiplied to four (weeks),

and for yearly supply the monthly supply is multiplied to twelve (months)

Table 6

Projected Supply

Year Supply
 2020 273,267

2021 286,704

2022 299,736

2023 312,768

2024 325,800

The table shows the projected annual supply of competitors with a 5% growth

rate. The growth rate was based on the competitors' perspective. Thus, it concludes that

this analysis will determine the capacity of the business in supply.

Demand and Supply Gap

This determines the willingness of a consumer to demand for a certain product with

the ability to pay for it, when it comes to the business proposal, the demand serves as an

implication for the great potential of the business in the market.

With this study, the demand was evaluated through the given survey questionnaires,

among the target market while the variables in this study and the household population in

the year 2019, competitors and willingness of the customer to avail the proponents product

Table 7
 Demand and Supply Gap

Year Demand Supply Gap

2020 1,104,840 273,267 831,573

2021 1,121,400 286,704 834,696

2022 1,127,520 299,736 827,784

2023 1,134,000 312,768 821,232

2024 1,140,480 325,800 814,680

Table 7, shows the Demand and Supply Gap from the first year of operation up to

the next 4 years of the business operation. To get the value of Gap, Demand is subtracted

to Supply. Base from the foregoing data and information presented, it would infer that the

proposed business will serve as a good indicator to come up with an average number of

supplies in the place. Therefore the point of entry of the proponent is feasible.

Table 8

Production Volume

Year Production

Daily Weekly Monthly Yearly

2020 250 1,500 6,000 72,200

2021 300 1,800 7,200 86,400

2022 350 2,100 8,400 100,800

2023 400 2,400 9,600 115,200

2024 450 2,700 10,800 129,600

 Table 8, shows the production volume. Each Skinless Tilapia Longganisa of the

proposed business will produce 250 serving daily. Each pack contained 6 pieces. The

proposed business will have a yearly production of 72 200, likewise the production annually

will have a 50 packs increase.

Table 9

Sales Forecast

Year ₱ 60.00 per serving

Daily Weekly Monthly Yearly

2020 ₱ 15,000.00 ₱ 90,000.00 ₱ 360,000.00 ₱ 4,320,000.00

2021 ₱ 18,000.00 ₱ 108,000.00 ₱ 432,000.00 ₱ 5,184,000.00

2022 ₱ 21,000.00 ₱ 126,000.00 ₱ 504,000.00 ₱ 6,048.000.00

2023 ₱ 24,000.00 ₱ 144,000.00 ₱ 576,000.00 ₱ 6,912,000.00

2024 ₱ 27,000.00 ₱ 162,000.00 ₱ 648,000.00 ₱ 7,776,000.00

Table 9, shows the sales forecast. The selling price of each pack of skinless tilapia

Longannisa of the proposed business is ₱60.00. To get the daily sales forecast ₱60.00

is multiplied to the daily production number.

Marketing Program

The 4P’s of marketing which are the Place, Promotion, Product and Price will

capture additional customers to attract and encourage people purchasing power in

order to meet the business goal in increasing sales and productivity. An additional

promotional materials like streamers, and the use of social media to the campaign, in

promoting the business popularity.

Product

Figure 1
 Product

Price

Table 10

Pricing

Particulars/Ingredients Quantity Unit Cost Price

Tilapia Fillet 500g ₱ 140.00/kl ₱ 70.00

Curing Salt ¼ tsp or 1.41g 20.00/500g 0.06

Salt Refined 1 ½ tsp or 8.32g 10.00/500g 0.17

Sugar Refined 6tbsp or 72.22g 57.25/kg 4.13

3
Black Pepper ⁄4 tsp or 1.83g 40.00/100g 0.74

Garlic 6 tbsp or 134.07g 90.00/kl 12.07

Pineapple Juice 1tbsp or 32.15g 24.50/250ml 1.53

Plastic 18pcs 3.25/45pcs 1.30

Total ₱ 90.00

Source: Ayala Malls Legazpi and Daraga Market

The total price of the Skinless Tilapia Longganisa is Php 90.00, this can create 3packs

of the Skinless Tilapia Longganisa, and each pack weighs 250g. Therefore the actual

price per pack is Php 30.00 with a mark-up rate of 100%, therefore the selling price per

pack is Php 60.00.

Mark up rate 100%

Php 30.00 (1.0) = 30.00

Php 30.00 + Php 30.00 = Php 60.00

Php 60.00 selling price

Place

Figure 2

.
 Figure 3

Place & Vicinity Map

Promotion

The proponent decided to implement the marketing strategies through social media

platforms in order to help the business generate more sales. Streamers will be used to

promote the new business and also to invite customers to purchase the product.

Streamers will be installed on the most convenient place.

 Section 2

Technical Study

The technical study is composed of product description, production flowchart,

service flowchart, raw materials, tools and equipment, sanitary supplies, office supplies,

utensils and machinery and equipment.

Product Description

Longganisa is a very popular breakfast meal among Filipino folks. However,

these are commonly made of pork or chicken. With increasing health-conscious

Filipinos who limit themselves and veer away from fatty food and with more than 60

percent of the Philippine population living within what are considered coastal areas, it is

very important to innovate and develop variety of marine food products. Processing

marine products needs to be diversified because all major cities and most large

industries are located close to the sea. Continuous innovation and development of food

products at differentvariants should be done. Hence, this study involves the exploratory

activity of developing breakfast meal made of fishery product. The fish species

considered in this study provide a healthy and less expensive alternative to meat.

Tilapia (Tilapia mossambica) is rich in protein and contains all the essential

amino acids required by the body to help build proteins. Protein helps in building,

maintenance and repair of body tissues. Moreover, tilapia is a rich source of omega-3
fatty acids, which are important for growth and development in children and brain

function. It also helps in body weight control and is naturally low in fat, thus, may help

reduce the risk of heart disease and sudden cardiac death.

Table 11

Nutritional Value

Nutrition Value per serving

Calories 426kcal
Saturated Fat 1.9g
Trans Fat 0.1g
Cholesterol 61mg
Sodium 147mg
Potassium 52mg
Carbohydrates 54g
Fiber 5.2g
Sugar 4.8g
Protein 28g
Vitamin A 79%
Vitamin C 63%
Calcium 8%
Iron 15%

Source: Nutritionix.com

Table 10, shows the nutritional content of Skinless Tilapia Loangganisa per pack.

Tilapia

Ground
Tilapia
Fillet the
Tilapia
 Scoop
3tbsp of the
mixture

Curing
Salt
Grind the
Using a funnel push
Tilapia in
the mixture in the
the Food
middle of the plastic
Processor
tube and twist both
ends Salt

Minced
the
Garlic Sugar
Pack by 6pcs
in a
polyethylene
bag
Skinless Tilapia Longganisa

Figure 4

Manufacturing Process

Ordering

Delivering

Paying
 Figure 5

Delivering Process

The proprietor will deliver the goods for free when they ordered atleast three (3) packs.

Table 12

Raw Materials

Raw Materials Quantity Schedule of Purchase Source

Tilapia Fillet 25kl Wednesday & Sunday Market

Curing Salt 250g Wednesday & Sunday Market

Salt Refined 250g Wednesday & Sunday Market

Sugar Refined 5kl Wednesday & Sunday Market

Black Pepper 250g Wednesday & Sunday Market

Garlic 1kl Wednesday & Sunday Market

Pineapple Juice 2bot Wednesday & Sunday Market

Plastic 20packs Wednesday & Sunday Market

Table 12 identifies the list of the raw materials needed in the production of Skinless

Tilapia Longganisa Product

Table 13

List of Machineries and Equipment

Particulars Quantity Unit Price Total Cost Estimated Depreciation

Life
(year/s)

Laptop 1 ₱ 25,000.00 ₱ 25,000.00 5 ₱5,000.00

Printer 1 5,000.00 5,000.00 5 1.000.00

Plastic Heat 1 800.00 800.00 5

Sealer

Food 1 6,000.00 6,000.00 1,200.00

Processor

Chiller 1 20,000.00 20,000.00 4,000.00

Total 5 ₱ 56,800.00 ₱ 11,200.00

Source: Denver Computer Shop, Lucky Educational Supply

Table 13 show the tools and equipment used in the production Skinless Tilapia

Longganisa, it indicates the quantity and the total cost is Php. 56,800.00.

Table 14

Tools and Utensils

Particulars Quantity Unit Price Total

Source: Ayala
Malls Legazpi
Spoon 1doz 30.00 ₱30.00
Table 14

shows the Wire Wisk 1pc 35.00 35.00

utensils that Mixing bowl 5pcs 30.00 150.00

are needed
Funnel 2 15.00 30.00
for the
Knife 2 150.00 300.00
proposed

business Chopping 1 50.00 50.00

Board

Table 15 Total ₱ 595.00

 Housekeeping Supplies

Particulars Quantity Unit Price Total

Mop 1 pc ₱ 267.00 ₱ 267.00

Alcohol 2 pcs 59.00 118.00

Sponge 2 pcs 20.00 40.00

Dishwashing Liquid 2 pcs 50.00 100.00

Broomstick 2 pcs 90.00 180.00

Dustpan 2 pcs 100.00 200.00

Garbage Bags 5 pcs 20.00 100.00

Tissue 10 pcs 28.00 280.00

TOTAL ₱ 1,285.00

Source: Ayala Malls Legazpi

Table 14 shows the list of all the sanitary supplies that will be used. The total cost is

Php.1,285.00

Table 16

Office Supply
 Particulars Quantity Unit Price Total

Box of Pen 1 box ₱ 60.00 ₱ 60.00

Receipt Paper 10 booklets 25.00 250.00

Scissors 10 pcs 25.00 250.00

Coupon Bond 5 reams 200.00 1,000.00

Marker 100 pcs 20.00 200.00

Cutters 10 pcs 35.00 350.00

TOTAL ₱2,110.00

Source: Lucky Educational Supply - Legazpi

Table 17 presents the different office supply that is needed coat at ₱2,110.00

Table 17

Furniture and Fixtures

Particulars Quantity Unit Total cost

Price

Table 2pcs ₱ 250.00 ₱ 500.00

Chair 5pcs 120.00 600.00

Total ₱ 1,100.00

Source: Handyman, Ayala Malls Legazpi

Table 14 show the furniture and fixtures in creating the Skinless Tilapia Longganisa

Stall, that cost Php.1,100.00.

Rent Expense

The proposed building will be located at New Albay Public Market, Legazpi City. The

proponent will be renting the lot agreed to a 2-year contract with the amount rate of ₱

5,000.00 per month, An amount of ₱1,500.00 will be added which include the utilities

such us water and electricity. It will be a contribution for the household’s expenses. A

total of ₱ 6,500.00 monthly rent expense.

Building

The proponent will build a small and simple restaurant, upon the agreement of the City

Government of Legazpi.

Table 18

Building

Particulars Quantity Unit Price Total

Cement 20 sacks ₱ 300.00 ₱ 6,000.00

Plywood 25 ply 250.00 6,250.00

Paint 30 Liters 200.00 6,000.00

Nails 2 kls 70.00 140.00

Coco Lumber 30 pcs 50.00 1,500.00

 Hallow Blocks 50 pcs 5.00 350.00

Labor 3 people (5days) 400.00 6,000.00

TOTAL ₱26, 240.00

Table 18 The construction of the building will cost at 26,240.00

Figure 6

Floor Plan

Quality Control

In order to secure the quality of our product and the business operation itself. The

following control shall be conformed:

  The ingredients entre should be of high quality. The proponent will get the

ingredients from trusted supplier.

 An inventory system (Point of Scales) will be set up in order to monitor inflows

and outflows of operation.

 The business will follow to the sanitary regulations set by the local government of

Legazpi in order to order any health hazards

Waste Disposal

Waste management is the collection, transport, processing, recycling or disposal and

monitoring of waste materials It is the process of treating solid wastes and offers variety

of solutions for recycling items that don’t belong to trash. It is about how garbage can be

used as a valuable resource. Waste management is something that each and every

household and business owner in the world needs. Waste management disposes of the

products and substances that you have use in a safe and efficient manner.
 CHAPTER III

Organization and Management Study

The Organization and Management Study is consisting of forms of business

organization, capitalization, organizational chart, duties and responsibilities, fringe

benefits, legal requirements and gantt chart.

Forms of Business Organization

The proposed business will be in a form of partnership. Partnership is a form of

business wherein two persons manage the business. They are also sharing with the

income and profit of the business. The proponents choose partnership as their form of

business because they can easily manage and monitor their business. And they can

help each other in making decisions for the proposed business. This type of ownership

is easy to establish, has a larger pool of capital, has little governmental regulation, and

fewer taxes.

Organizational Structure
The Proponent 1 will act as manager and crew, likewise will be responsible for the over-

all operation and service. The Proponent 2 will act as the finance Manager as well as

General manager, he will have equal managing rights and will be contributing ideas on

how to improve and develop the business.

Table 19

Capitalization

Proponent Capital

Vidal Leonel M. ₱78,877.50

De Vera Catherine Rose ₱78,877.50

Total ₱157,775,00

Table 19 shows the contribution needed of the proponents to start the business. The

capital will be divided to both partners equally.

CEO
.

General Manager

Helper
 Cashier

Figure 7

Organizational Chart

Table 20

Personnel No. of Daily Weekly Monthly Yearly

Personnel Salary Salary Salary Salary

Vidal, Leonel 1 ₱400.00 ₱2,400.00 ₱9,600.00 ₱115,200.00

Partner 1 1 ₱400.00 ₱2,400.00 ₱9,600.00 ₱115,200.00

Helper 1 ₱310.00 ₱1,860.00 ₱7,440.00 ₱89,280.00

Cahier 1 ₱310.00 ₱1,860.00 ₱7,440.00 ₱89,280.00

Compensation Scheme

Table 20 displays the daily, monthly and yearly salary of the employees of the proposed

business.

Table 21

Fringe Benefit

Personnel SSS PhilHealth

Vidal, Leonel ₱ 450.00 ₱ 200.00

Partner 1 ₱450.00 ₱200.00

Helper ₱450.00 ₱200.00

Cashier ₱450.00 ₱200.00

Table 18 shows the benefit for the proposed business.

Table 22

Legal Requirements

Registration Amount
Barangay Clearance ₱65.00

Business Permit ₱420.00

Sanitary Health Permit ₱250.00

Mayors Permit ₱1,120.00

Documentary Stamp ₱20.00

Registration Fee ₱500.00

BIR ₱750.00

Total ₱3,125.00

SOURCE: Legazpi City Hall

Table 22 shows the legal requirements needed in the proposed business.

Projected Schedule

The Gantt Chart diagram makes it possible to identify the task necessary for the

smooth running of the project and to establish their order of completion. It is scheduling

tool that’s is used to present an in depth schedule of the events that is projected to

happen. Planning must be as realistic as possible. Through this, it will make it easier to

stick to it and avoid the delays and losses of money as a result. The Gantt chart

provides a tool for visualizing at a glance all the tasks of the project as well as the level

of progress of each task

2020

Activities Aug Sept Oct Nov Dec

Feasibility
Study      

Capital
Sourcing          
Business
Registration          
Procurement
and
Installation          

Tools and
Materials          
Promotion

Purchasing of
Raw Material

Start of
Business          
 Figure 8

Gantt Chart

Section 4

Financial Study

This section represents the financial study aspects of the suggested business, therefore

include the calculation of projected cost, income Statement, Cash Flows, and Balance

Sheet. The important of this section is to provide the proponents idea whether the

business is viable of feasible.