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MARKETING FEASIBILITY
3.1. ASSUMPTIONS
JDP will use distribution channels in order to get the product to final consumer.
The researchers assume 2 channels of distribution.
On the first year the business will have 2 distribution channels.
Mark up price will be 30% every year.
Rejects will be 4%.
Delivery will be of orders on the first year will be done by the employee of the business,
on the third year the business will be renting a tricycle for delivery.
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.
JPDs market would probably be the outlets and restaurants.
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 JPD 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.
JPD would be distributing to 2 channels on its first year these are FNC Nathaniels and JLT
Pipanganan.
The business will be focusing and invest heavily in pushing its product in the above mentioned
distribution channels.
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.
Number of Customers
272
302
311
288
347
381
407
2,308
Number of Customers
130
121
127
132
146
153
157
966
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,
JLT Pipanganan, The number of respondents came from the customers who purchased the
proposed products substitute. In FNC Nathaniels Bakeshop there are 340 respondents and in
JLT Pipanganan 240 respondents.
3.2.1 B. Questionnaire
Since the business will distribute its product to retail outlet and restaurant, this will be the
business target market. The researchers distributed survey questionnaires to retail outlet and
restaurant in order to gather pertinent information about the target markets taste and
preferences. The researchers used a checklist format. 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,
price, packaging, and what marketing strategies to be used in each distributeon channels.
3.2.1 C. Customer Tally Count
The researchers conducted a customer tally count on each distributionchannels 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. 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 willing and able to purchase considering its taste and price, this will also be
the bases of projection of demand.
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 the direct and productsubstitute.
Questionnaire - It is used to determine the taste and preference of the target market.
Product Sampling is freely given to the customers to have the opportunity to try the
product and also to determine their opinions.
Interview - The researchers interviewed the manager/owner of outlets and canteens to
gather some information that we may need in the said study.
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. This method
is usually used by many business to find out the opinion of customer after purchasing the
product from them, this to makes the customer feel that views and opinion are taken into
consideration by the business.
Question 1:
Product
Purchased:
#
customer
s who
avail the
product
75
Question 2:
%
22.06
1. PutoPao
Size
1 pack/
25
pieces
Quantity
52
15.29
21.33
69.33
37
49.33
48
14.12
Bilao
41
12.06
1 pack/
15 pcs
Bilao
SUBTOTAL
34
10.00
1 pack/
25 pcs
1
pack/50
pcs
SUBTOTAL
27
7.94
1 pack/
15 pcs
18
5.29
Big
%
10
18.87
%
No
2
pack
3
pack
18
10
2
pack
3
pack
41
2
pack
3
pack
18
1
pack
2
pack
3
pack
19
37
1
pack
11
2
pack
3
pack
33
33
2
pack
3
pack
21
2
pack
3
pack
5
26
2
pack
3
pack
19
2
pack
3
pack
1
3
21
21
11.32
1
pack
26.42
1
pack
16.22
1
pack
6
Yes
23
43.40
No
14
20.00%
59
53.85
100.0
48
48
75.61
Yes
17
32.69
No
38.46
Yes
20
No
Yes
34
70.83
No
Yes
22
53.66
No
31
11
42
24.39
27
79.41
7
34
9.33%
No
15
46.15
28
52
Question 5:
If nathaniels, will sell palitaw with fillings,
how many packs are you willing and able to purchase @Php
70, 8 pcs. per pack?
Yes
7
Yes
Question 4:
No
24
1 box /
P55
6. PutoPuti
SUBTOTAL
7. Tibok
Tibok
16
23
Bilao
2. Moche
5. Cutchinta
Yes
52
75
SUBTOTAL
4. Puto
Assorted
30.67
1 pack/
6pieces
SUBTOTAL
3. Pichi
Pichi
Question 3:
20.59
27
27
10
45
Yes
Yes
19
Yes
Yes
19
Yes
17.07
55.88
14.71
70.37
33.33
No
No
No
No
No
Yes
7
13.46%
15.38%
14
29.17%
21.95%
7.32%
23.53%
5.88%
29.63%
11.11%
11
29.73
No
6
Yes
12
Yes
21
Yes
14
32.43
61.76
48.28
No
No
38.24
13
1
pack
No
8
Yes
13.79
No
Yes
12
50.00
%
No
12.50
%
Yes
12
63.16
%
No
Yes
30.77
%
No
Yes
21.62
No
27.59
10.34
3
29.17
7
2
8.33
36.84
7
15.38
1
pack
1
pack
1
pack
1
pack
2
pack
3
pack
1
pack
2
pack
3
pack
6
25
Small
SUBTOTAL
8. Rice Cake
12
3.53
Regular
Small
SUBTOTAL
9. Cassava
Cake
10
2.94
10
2.94
6
12
1.47
6
10
Bilao
5
5
4
1.18
50.00
Small
Containe
r
Yes
Yes
Yes
Yes
10
10
5
3
2
5
4
38.89
41.67
33.33
30.00
No
No
No
100.0
0
8.33%
16.67%
Yes
40.00
70.00
No
Yes
30.77
%
No
33.33
%
No
Yes
22.22
%
No
28.57
%
No
20.00%
23.08
22.22
2
2
1
pack
1
pack
22.22
14.29
1
pack
SUBTOTAL
340
1.18
Small
5
5
345
3
pack
2
pack
3
pack
2
pack
2
pack
3
pack
3
6
2
pack
3
pack
6
13
10.00%
No
3
Yes
Yes
1
Yes
16.67%
No
40.00
60.00
Yes
28.57
%
No
Yes
66.67
%
No
30.00%
28.57
50.00
1
pack
25.00
1
pack
2
pack
3
pack
3
6
2
pack
3
pack
3
pack
3
pack
3
pack
6
100.0
0
Yes
80.00
No
Yes
1
20.00%
75.00
%
No
1
2
pack
6
6
60.00
40.00
Yes
Yes
1
1
25.00
25.00
No
No
1
1
25.00%
25.00%
Yes
Yes
50.00
%
50.00
%
No
No
0.00
0
0
0.00
1
pack
1
pack
0
1
SUBTOTAL
TOTAL
50.00
Small
11. Biko
SUBTOTAL
13. Halaya
SUBTOTAL
12. Maja
55
Big
Small
10. Sapin
Sapin
SUBTOTAL
11
20
100.0
0
Yes
3
3
75.00
N
o
1
1
Yes
25.00%
66.67
%
No
1
1
33.33
1
pack
2
pack
2
pack
3
2
3
pack
4
4
245
52
48
50
41
40
30
20
34
27
22.06
15.29
14.12
18
12.06
10
10
12
7.94
5.29
3.53
10
2.94
# of customers
% Percentage
10
2.94
1.47
1.18
1.18
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.
QUESTION 2:
60
52
48
50
40
30
28
23
31
27
24
27
20
11
10
Quantity
7
11
10
6
Analysis:
As shown in the graph, many have purchased PutoPao (1 pack/6 pieces) and Pichi Pichi(Bilao).
QUESTION 3:
DO YOU EAT PALITAW?
60
53
50
37
40
30
20
10
0
34
29
24
22
YES
19
15
14
12
10
NO
13
8
9
5
7
3
7
3
2 2
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.
QUESTION 3:
DO YOU EAT PALITAW?
29%
YES
71%
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.
QUESTION 4:
DO YOU PREFER PALITAW WITH FILLINGS AS A SUBSTITUTE OF WHAT YOU
PURCHASED?
35
33
30
23
25
20
21
18
20
14
15
10
5
13
15
11
12
9
yes
8
no
5
54
43
43
21
0
0
Analysis:
From the 241 respondents who answer YES to Question 3. We asked Question 4, this
question will help the researchers to determine the demand of palitaw. The result shows
that150 respondents have answered that they are willing to substitute palitaw from what
they have purchased.
QUESTION 4:
DO YOU PREFER PALITAW WITH FILLINGS AS A SUBSTITUTE OF WHAT YOU PURCHASED?
38%
62%
YES
NO
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).
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?
59
60
50
37
40
33
26
30
25
21
Quantity
20
13
6
10
Analysis:
The result shows that the product has a market demand of 245packs in a week at FNC
Nathaniels Bakeshop. This will be the bases on the projection of demand for the next 4 years.
Product
Purchased:
Cassava
Cake
# of
customer
s who
avail the
product
33
Question 2:
Quantity
Question 3:
Question 4:
%
13.75
%
pack
33
Yes
22
66.67%
%
No
%
Yes
11
33.33%
1
5
68.18%
Question 5:
If JLT Pipanganan, will addpalitaw
with fillings in their menu, how
many packs are you willing and
able to purchase @Php 70, 8 pcs.
Per pack?
%
No
7
31.82%
1pac
k
2
pac
k
10
2
pac
k
11
2
pac
k
10
2
pac
k
2
pac
k
SUBTOTAL
21
32
Maja Blanca
13.33
%
pack
32
Yes
21
65.63%
No
Yes
11
34.38%
1
5
71.43%
No
6
28.57%
1pac
k
SUBTOTAL
Crema de
Fruta
32
container
32
Yes
21
66.62%
No
11
34.38%
Yes
1
5
71.43%
No
28.57%
1pac
k
31
12.92
%
pack
31
Yes
20
64.52%
No
Yes
11
35.48%
1
4
70%
No
6
30%
1pac
k
SUBTOTAL
29
12.08
%
pack
29
Yes
19
65.52%
No
Yes
10
34.48%
1
3
68.42%
No
6
31.58%
1pac
k
19
19
Yes
28
11.67%
Container
28
No
20
71.43%
Yes
8
28.57%
1
3
No
65%
35%
1pac
k
2
pac
k
2
pac
k
SUBTOTAL
17
17
Yes
28
11.67%
Container
28
No
18
64.29%
Yes
10
35.71%
1
3
No
72.22%
27.78%
1pac
k
SUBTOTAL
Buco
Sherbet w/
Lychee
18
18
SUBTOTAL
BukoPandan
Salad
19
19
Biko
Fruit Salad
20
20
13.33
%
SUBTOTAL
Assorted
Pastries
21
18
18
Yes
27
11.25%
container
27
No
18
66.67%
Yes
9
33.33%
1
2
1pac
k
No
66.67%
33.33%
2
pac
k
15
TOTAL
240
240
15
147
JLT PIPANGANAN
QUESTION 1:
PRODUCT PURCHASED
35
33
32
32
31
29
30
28
28
27
25
20
15
10
5
0
13.75
13.33
13.33
# of customers
12.92
12.08
11.67
% percentage
11.67
11.25
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.
QUESTION 2:
QUANTITY OF PRODUCT PURCHASED
35
30
33
32
32
31
29
28
28
27
25
20
15
10
5
0
Analysis:
Quantity
The chart shows thatthe quantity of desserts availedat JLT are almost the same, 33 cassava
cake, 32 majablanca, 32 crema de fruta, 31 biko, 29 pastries, 28 fruit salad, 28 bukopandan salad
and 27 buco sherbet are sold.
Question 3:
DO YOU EAT PALITAW?
25
22
21
21
20
20
15
10
11
11
11
11
19
10
20
18
18
10
18
9
YES
5
0
NO
Analysis:
The survey was conducted among 240 respondents who avail JLTs desserts. The result
shows that 159 of the respondents eat palitawand 81 of the respondents who doesnt eat
palitaw.
QUESTION 3:
DO YOU EAT PALITAW?
33.75%; 34%
66.25%; 66%
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.
QUESTION 4:
DO YOU PREFER PALITAW WITH FILLINGS AS ASUBSTITUTES OF WHAT PURCHASED?
80
60
40
20
15
15
7
15
6
yes
14
6
13
6
13
6
13
7
12
5
no
5
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.
QUESTION 4:
DO YOU PREFER PALITAW WITH FILLINGS AS ASUBSTITUTES OF WHAT PURCHASED?
30.82%; 31%
yes
69.18%; 69%
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 Palitawwith fillings. This means that the proposed product has demand on
the market (JLT Pipanganan).
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?
20
20
18
16
14
12
10
8
6
4
2
0
20
18
18
19
17
18
15
Quantity
Analysis:
The result shows that the product has a market demand of 147 packs in a week at JLT
Pipanganan. This will be the bases on the projection of demand for the next 4 years.
DAILY
WEEKLY
MONTHLY
ANNUALLY
2014
25
175
700
8400
2015
35
245
980
11760
2016
45
315
1260
15120
2017
55
385
1540
18480
2018
65
455
1820
21840
JLT PIPANGANAN
DAILY
WEEKLY
MONTHLY
ANNUALLY
2014
15
105
420
5040
2015
21
147
588
7056
2016
27
189
756
9072
2017
33
231
924
11088
2018
39
273
1092
13104
Projection of Demand for 2015 2018 is based on the survey conducted among
customers of FNC Nathaniels Bakeshop and JLT Pipanganan. The result in Question 5 is
the bases on the increase of demand.
3.4.1
DAILY
WEEKLY
MONTHLY
ANNUALLY
2014
40
280
1120
13440
2015
56
392
1568
18816
2016
72
504
2016
24192
2017
88
616
2464
29568
2018
104
728
2912
34944
2015
2016
2017
2018
NATHANIEL
S
8400
11760
15120
18480
21840
JLT
5040
7056
9072
11088
13104
TOTAL
13440
18816
24192
29568
34944
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.
NATHANIELS
DAILY
WEEKLY
MONTHLY
ANNUALLY
PutoPao
20
140
280
3360
Moche
10
70
140
1680
Pichi-Pichi
49
98
1176
Puto Assorted
35
70
840
Cutchinta
35
70
840
TOTAL
47
329
658
7896
Source: Information are gathered from competitors and validated through survey
JLT
DAILY
WEEKLY
MONTHLY
ANNUALLY
Cassava Cake
35
70
840
Maja Blanca
35
70
840
Crema de Fruta
35
70
840
Biko
21
42
504
Assorted Pastries
21
42
504
Fruit Salad
21
42
504
BukoPandan Salad
21
42
504
TOTAL
27
189
378
4536
Source: Information are gathered from competitors and validated through survey
PAST SUPPLY
Supply of kakanin product and substitute product of for the past 5 years from 2009 2013:
FNC NATHANIELS BAKESHOP
% OF GROWTH
YEAR
2009
SUPPLY
2587.361
25%
25%
2010
3234.202
2011
25%
4042.752
2012
25%
5053.44
25%
2013
6316.80
Source: The 25% increase in supply every year for the past 5 years is based on the data
gathered from competitor through interview.
JLT PIPANGANAN
YEAR
2009
2010
2011
2012
% OF GROWTH
SUPPLY
25%
1486.356
25%
1857.946
25%
2322.432
25%
2903.04
25%
2013
3628.8
Source: The 25% increase in supply every year for the past 5 years is based on the data
gathered from competitor through interview.
3.5.1
DAILY
WEEKLY
MONTHLY
ANNUALLY
2014
74.00
518.00
1,036.00
12,432.00
2015
92.50
647.50
1,295.00
15,540.00
2016
115.63
809.38
1,618.75
19,425.00
2017
144.53
1,011.72
2,023.44
24,281.25
2018
180.66
1,264.65
2,529.30
30,351.56
Increase in Supply is based on the supply trend for the past 5 years. The supply for 2009 -2013
increase by 25%.
Computation:
% of growth = Value for the present year value for the past year/ value for the past year
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 in order to satisfy the unserved market.
JPD made its supply capacity based on its resources. The business has 2 personnel, 1 piece
single burner gas stove and product preparation of 40 packs requires at least 4 hrs. JPDs production
schedule will be from Monday - Sunday, the personnel will work for 5hours from 5am 10am in order to
supply 40 packs daily and 13, 440 packs annually on its first year.
3.5.2.1
2014
DA
Y
QT
Y.
MON.
40boxes
of
8pcs.palit
aw balls
TUES.
40boxes
of
8pcs.palit
aw balls
WED.
40boxes
of
8pcs.palit
aw balls
THURS.
40boxes
of
8pcs.palit
aw balls
FRI.
40boxes
of
8pcs.palit
aw balls
SAT.
40boxes
of
8pcs.palit
aw balls
SUN.
FRI.
50boxes
of
8pcs.palit
aw balls
SAT.
50boxes
of
8pcs.palit
aw balls
SUN.
50boxes
of
8pcs.palit
aw balls
boxes of
8pcs.palit
aw balls
2015
DA
Y
QT
Y.
MON.
50boxes
of
8pcs.palit
aw balls
TUES.
50boxes
of
8pcs.palit
aw balls
WED.
50boxes
of
8pcs.palit
aw balls
THURS.
50boxes
of
8pcs.palit
aw balls
2016
DA
Y
QT
Y.
MON.
63boxes
of
8pcs.palit
aw balls
TUES.
63boxes
of
8pcs.palit
aw balls
WED.
63boxes
of
8pcs.palit
aw balls
THURS.
63boxes
of
8pcs.palit
aw balls
FRI.
63boxes
of
8pcs.palit
aw balls
SAT.
63boxes
of
8pcs.palit
aw balls
SUN.
63boxes
of
8pcs.palit
aw balls
FRI.
79boxes
of
8pcs.palit
aw balls
SAT.
79boxes
of
8pcs.palit
aw balls
SUN.
79boxes
of
8pcs.palit
aw balls
FRI.
99boxes
of
8pcs.palit
aw balls
SAT.
99boxes
of
8pcs.palit
aw balls
SUN.
99boxes
of
8pcs.palit
aw balls
2017
DA
Y
QT
Y.
MON.
79boxes
of
8pcs.palit
aw balls
TUES.
79boxes
of
8pcs.palit
aw balls
WED.
79boxes
of
8pcs.palit
aw balls
THURS.
79boxes
of
8pcs.palit
aw balls
2018
DA
Y
QT
Y.
MON.
99boxes
of
8pcs.palit
aw balls
3.5.2.1.1
TUES.
99boxes
of
8pcs.palit
aw balls
THURS.
99boxes
of
8pcs.palit
aw balls
YEAR
2014
2015
2016
2017
2018
3.6
WED.
99boxes
of
8pcs.palit
aw balls
PRODUCTION
13440
16800
21168
26544
33264
DEMAND-SUPPLY ANALYSIS
Table 3.6.1 Percentage of the Unserved Market
FNC NATHANIELS BAKESHOP
YEAR
2014
2015
2016
2017
DEMAND
8400
11760
15120
18480
SUPPLY
7896
9870
12337.5
15421.875
DEMAND - SUPPLY
504
1890
2782.5
3058.125
% MARKET
SHARE
6.00%
16.07%
18.40%
16.55%
2018
21840
19277.3438
2562.65625
11.73%
JLT PIPANGANAN
YEAR
2014
2015
2016
2017
2018
DEMAND
5040
7056
9072
11088
13104
SUPPLY
4536
5670
7087.5
8859.375
11074.2188
DEMAND - SUPPLY
504
1386
1984.5
2228.625
2029.78125
% MARKET
SHARE
10.00%
19.64%
21.88%
20.10%
15.49%
x 100
PRODUCTION
8400.00
10500.00
13230.00
16590.00
20790.00
DEMAND - PRODUCTION
0
1260
1890
1890
1049.999999
TARGET % MARKET
SHARE
10.71%
12.50%
10.23%
4.81%
JLT PIPANGANAN
PRODUCTION
5040.00
6300.00
7938.00
9954.00
12474.00
DEMAND - PRODUCTION
0
756
1134
1134
629.9999993
TARGET % MARKET
SHARE
10.71%
12.50%
10.23%
4.81%
YEAR
TARGET PRODUCTION
% OF D-S GAP
TARGET % MARKET
SHARE
2014
8400.00
6.00%
2015
10500.00
16.07%
10.71%
2016
13230.00
18.40%
12.50%
2017
16590.00
16.55%
10.23%
2018
20790.00
11.73%
4.81%
TARGET PRODUCTION
% OF D-S GAP
TARGET % MARKET
SHARE
-
2014
5040.00
10.00%
2015
6300.00
19.64%
10.71%
2016
7938.00
21.88%
12.50%
2017
9954.00
20.10%
10.23%
2018
12474.00
15.49%
4.81%
JLT PIPANGANAN
YEAR
3.7
3.7.1
Salaries All of the employees are being paid twice a month. There two pay periods in
each month the first pay period is from the 1 st through the 15th day of the month and the
second pay period is from the 16th through the last day of the month.
13th Month Pay Every year, each employee is entitled to a 13 th month pay, which is
equivalent to of their basic salary.
Benefits
3.7.2
Phil Health The PHILHEALTH Program provides benefits for hospital room and board
allowance, allowance for medicine, laboratory examination, X-Ray, surgeons fee,
operating room fee, anestheologists fee, and medical and dental practitioners fee.
However, the allowance will not necessarily cover the total expense incurred.
SSS Benefits A social security contribution that is deducted monthly from the salary of
the employees.
SUPPLY FORCE
Competitors acquire their products and raw materials from different suppliers.
DIRECT COMPETITOR
Products
Kakanin
Sources of Supply
NATHANIELS
Nathaniels Factory located in Barangay
Juliana, City of San Fernando,Pampanga
JLT PIPANGANAN
Kakanin
Product
Sources of Supply
NATHANIELS
Dimsum
Dessert
Pastries
Pastries
Bread
Pies
Cakes
Merienda
Pasalubong
JLT PIPANGANAN
JLT BucoPandan Salad
Fruit Salad
Fresh Fruit in Season
Assorted Pastries
Buco Sherbet with Lychee
Crema de Fruita
Ambrosia Salad
CONNIE'S FAST FOOD
*Foot Long Hotdog,Patties,HamPampanga's Best
Hamburger,Foot Long,
Sandwich,Biscuit&Chips,Spaghetti&Pancit
*Breads-Erlinda's Bakeshop
*Noodles,Mayo,Condiments-San
Fernando Old Public Market, City of
San Fernando, Pampanga
PAG-IBIG CANTEEN
Turon,KamoteQue,ChickenSandwich,Tun
San Fernando Old Public Market,
a Sandwich
City of San Fernando, Pampanga
3.7.4 PRODUCT- MIX STRATEGIES
STANDARDS
3.7.3
QUALIT
Y
3.7.4.1
The Competitor
is PRODUCT
very particularMIX
when itWIDTH
comes to the products they produce. To assure that the
product is well produced and maintained, theyinspect the products quality.
3.7.4.2 PRODUCT MIX DEPTH
Kakanin
Dimsum
DESSERT
PASTRIES
BREAD
PIES
Variation
Variation
Variation
Variation
Variation
Variation
Putopao
Siomai
Mais Con
Yelo
Assorted
Pastries
Roll
6 Pcs, 20
Pcs,25 pcs
10 pcs,
20
Pcs,30
PCs, 50
Pcs
CA
Var
Product Mix
Depth
Size
Flavor
Original,
Chicken
Color
White
Packaging
Styro, Bilao
Asado,
Chicken
White
Carame
Moist C
Black for
Panda
Delight,
Light Br
brown,
green
Biko
Size
Small,
Container,
Slice
Flavor
Color
Packaging
Size
small (10
Pcs),
Regular,
Regular(
10 PCs)
Asado,
Bola-Bola
Halo-Halo
Boat
Tarts
Banana
Bread
Regular,
Special
10 Pcs
Loaf,
Slice
macapuno
Banana
Light
Brown
White
Bilao,
Plastic
Container,
Styro
Box
Birenghe
BukoPand
an Salad
Brownies
Cupcake
s
Medium,
Container
Pint, Cup,
Small, Big
8 Pcs,20
Pcs
12 Pcs
Flavor
Color
Yellow
Green
Packaging
Bilao,
Plastic
Container
Kutsinta
Size
Siopao
BukoPanda
n
Light
Green
Cup,
Plastic
Container-Fruit
Salad
Medium,
Small
Red Orange
Bilao
Puto
Size
Flavor
Color
Packaging
Packaging
Polvoron
Pandesa
l
10 Pcs
10 Pcs
Small, Big,
Slice
Box
Chocolat
e
Crinkles
10 Pcs
Plain
White, Pink,
Green,
Violet
Bilao
Choco
Dark
Brown
Crema de
Fruita
Box
Empanad
a
10 PCs
Chicken,
pork
Flavor
Color
Leche
Flan
15 pcs, 50
Pcs
Rice Cake
Size
Box
Choco,
Kasoy,
Pinipig
Flavor
Color
Packaging
Cheese,
Fruit
Brown
Bilao,
Plastic
Container,
Styro
Box
taisan
Size
Pichi-Pichi
Cookies
and
Cream
Bilao, Slice
10 Pcs
Color
Light Yellow
Packaging
Bilao, styro
cookies
and
cream
Dark
Brown,
white
Box
Mochi
Sansrival
Flavor
Size
Flavor
Color
Packaging
Size
Flavor
Color
Packaging
Size
Flavor
Color
Packaging
Size
8 pcs, 15
Pcs, 25 Pcs
White
Bilao, Styro
TibokTibok
Medium,
Container,
Slice
White
Bilao,
Plastic
Container,
Bilao
Cassava
Cake
Small, Big,
Slice
Box, Styro
Maja
Blanca
Medium,
Container,
Slice
Flavor
Color
Packaging
Size
White
Bilao,
Plastic
Container,
Styro
Ube
Halaya
Medium,
Small,
Container
Flavor
Ube
Color
Light Violet
Bilao,
Plastic
Container
SapinSapin
Packaging
Silvanas
Size
Small,
Medium,
Contaiber,
Slice
Flavor
Color
Packaging
White,
Yellow,
Violet
Bilao,
Plastic
Container,
Styro
Size
Flavor
Color
Packaging
Size
Flavor
Color
Packaging
Size
Flavor
Color
Packaging
Size
Flavor
Color
Packaging
PRODUCT- FNC Nathaniels started with 2 product lines namely: Homemade Siopao and Siomai.
As well as JLT Pipanganan has also started with limited products.
PRICE- They used Penetration Pricing strategy to build market share rapidly.
PLACE- The competitors are only selling their product to family garage to their friends and
neighbors.
PRODUCT- Returning Customers looked for more products, thats why they made new products
to be added in their menu, Nathaniels made what is now called by as many as Pampangas
famous BukoPandan and other products.
PLACE - They increased in channel distribution from the garage, they now move to san fernando
Pampangas business district in 2005.
PROMOTION- Nathaniels is now using T.V ads, Posters, and streamers etc. to promote their
products.
3.7.5.3 MATURITY
During this stage sales grow at a very fast rate and then gradually begin to stabilize.
PRODUCT- Nathaniels is now a full blown restaurant that offers wide range of quality products
such as dimsum, desserts, pastries, cake kakanin, rice meals and merienda.
PLACE- Nathaniels already had another branch located at Angeles and some Malls.
PRICING- They already have fixed price for each product which is still affordable and can sustain
the everyday sales.
PROMOTION- They maintained T.V ads, Radio ads, News Paper ads etc. for promotion.
Competitors are using One Price Policy in which fixed price are set. Once the customers
entered the store and purchased a product, the customer will pay the amount dictated by the
seller regardless the number of product purchased.
3.7.7 TRANSPORTATION AND DELIVERY STAGE
The competitor used a FB L300 van in their delivery of products. Delivery will be twice a week.
3.7.8 BRANDING AND PACKAGING
Competitors are using boxes, bilao, styro, and transparent containers in packaging their product.
For branding, they used company name mixed with individual or family names for all of of their
product. Ex. Nathaniels BukoPandan, Nathaniels PutoPao They are also using plastic bags
with their printed business name for packaging.
3.7.9 ADVERTISEMENT AND PROMOTIONS STRATEGIES
Competitors as part of their Advertisement and Promotions Strategies, they are using TV ads,
radio, newspaper ads, banners, streamers, flyers and tarpaulins.
3.7.10 STORAGE AND WAREHOUSING
Competitors make sure that their storage room and warehouse are properly ventilated. Cleanliness and
safety is clearly observed. They are using FIFO policy to avoid spoilage and to maintain the freshness of
their product.
3.7.11 PHYSICAL DISTRIBUTION
As to describe the physical distribution of our competitors, they are using Singe Plant-Single Market
Strategies. Competitors have their own plant in producing their product. They only have single market in
which the product they produced are only delivered directly in their own store.
3.8
SWOT ANALYSIS
STRENGTHS
OPPORTUNITIES
High demand
Kakanin has been existed in the market for
a long time
WEAKNESSES
THREATS
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 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.Incase 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 Agriculture3,220,607palays were produced in 2012 in Central Luzon. Surely, will have an
abundant supply of galapong or malagkit or glutinous ricethat is why when the above mention supplier
can no longer supply the needs of the business, JPD will contract suppliers from Nueva Ecija and Tarlac
where the 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 rice,
JPD will contract suppliers from Laguna, our Countrys leading supplier of coconut. Sugars alternative
supplier is PASUDECO manufacturer of sugar in Pampanga. In worst cases if the mention can no
longer supply sugar, the business will contract supplier from Tarlac known for largest plantation of sugar in
the Philippines.
The supplier will deliver the raw materials every week. Delivery will be free of charge.
Raw Materials
Glutinous Rice Flour
White Sugar
Coconut
Egg
Margarine
Condensed Milk
Sesame Seeds
3.8.5
Annually
2,400 kilograms
660 kilograms
2400 pcs/175 grams
2400
pcs/medium
size
240 cans/100 grams
2400
cans/380
grams
600 kilograms
3.8.6
3.8.7
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.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.
PRODUCT- JPD started with one product line the Palitaw Balls.JPDs Palitawballs isanticipated
to earn sales volume that is not very high.Production will be at a fixed amount depending on the
volume of orders of target market.
PRICE- the business used a penetration pricing strategy and set a low price to build market share
rapidly.
PROMOTION- promotional strategy will only be the advertisement coming from the customers
who tasted are product or known as the word of mouth.
PRICE- JPD increases its price every year but products are still affordable.
PLACE- Aside from FNC and JLT, JPD will now expand its distribution channels to other retailers
and outlets within City of San Fernando.
PROMOTION- JPD will be now spending on tarpaulins and posters to promote its product.
PRODUCT- JPD has already a wide range variety of quality kakanins to be distributed.
PLACE- JPD will maintain its distribution channels and has the potential to add more.
PROMOTION- JPD will now have Radio ads aside from posters and tarpaulins.
In cases the product declines, JPD will make some strategies on how to make its product feasible
again to market. Possible, the product will be re invented or new packaging and brand name
will be used. JPD may also used promotional strategies like promos and product discounts.
3.8.8
PRICING STRATEGIES
JPD used the cost price strategy in order to determine the selling price of our product.
The formula would be cost per unit plus mark up.
Cost/ Unit
Add: Mark-up 30%
Selling Price
3.8.9
41.8217
9
1.3
49.3475
1.3
49.4479
6
1.3
50.7706
5
1.3
53.9853
9
1.3
55
65
65
66
70
Since the JPD is a manufacturing type of business, distribution channels will be used. The
business will have a three level channel of distribution. From the manufacturer to the retail outlets who
sell kakanin and other product substitute, canteens and restaurants to final consumer. Further, the
business is expected to distribute to other distribution channels.
MANUFACTURER
RETAIL OUTLETS
CONSUMER
MANUFACTURER
RESTAURANTS
CONSUMER
In the delivery of orders to FNC Nathaniels Bakeshop and JLT Pipanganan, one of the personnel will
be assigned on the delivery. The personnel will be given a daily transportation allowance of P30.00
that is equal to Php 10,080 in a year. 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 and the delivery will start at JLT Pipanganan and will end at FNC Nathaniels Bakeshop. On the
3rd year of operation of the business, the business will be renting a tricycle amounting to Php 18,816
in a year.
JPD JLTPIANG
FNCATHIEL'SBKOP
The business will also use promotional strategies that are free. This includes using social
networking sites and word of mouth. The business will create fanpage in facebook, twitter,
myspace, tumblr and instragram.
PROMOTIONAL MATERIALS
Tarpaulin
Posters
Business Cards
Price: P500.00
Description: COLORED
Size: 2 X 7 feet
Consumable for 1 year
Price: P280.00
Description: COLORED
Size: A4 bond paper
Consumable for 1 year
Price: P100.00
Description: COLORED
Size: 3.5 x 2
50 pcs.
Consumable for 1 year
Price: 500
Free Samples
P 1,380
TOTAL
Weekly
Monthly
Yearly
Price/
Unit
Cost
Daily
Weekly
Monthly
Yearly
2014
38
266
1064
12768
55
2090
14630
58520
702240
2015
48
336
1344
16128
65
3120
21840
87360
1048320
2016
60
420
1680
20160
65
3900
27300
109200
1310400
2017
75
525
2100
25200
66
4950
34650
138600
1663200
2018
95
665
2660
31920
70
6650
46550
186200
2234400