CHAPTER I

MARKETING BACKGROUND

A. HISTORICAL BACKGROUND OF THE INDUSTRY

A “Balut” is a fertilized duck egg that is incubated for 14 to 21 days, boiled or

steamed, and the contents eaten direct from the shell. In a balut that has been incubated for
longer periods, the embryo is well developed and the features of a duckling is recognizable.
The partially-developed embryo bone is soft enough to chew and swallow as a whole. The
mallard duck also known as “Pateros Duck”, is considered to be the most important breed
for breed egg.

Balut is a common street-food in the Philippines and other localities and is also sold
in stores and malls. It is a substantially higher source of protein and calcium compared to
a regular unfertilized egg and is relatively cheaper. The Philippines is influenced by
Chinese around 1885 and since then, balut has been included as a traditional part of the
culture.

Traditionally, the fertilized eggs are incubated are in the sun or buried in sand, and
stored in baskets t retain warmth. After nine days, the eggs are held to a light to reveal the
embryo inside. The production of balut depends on egg maturation cycles, where the eggs
begins developing and changes in texture. Through these various maturation periods,
different temperatures are required to accentuate the specific egg and embryo
characteristics.

The duration of egg incubation is a matter of local preference. In the Philippines,

balut is generally incubated for 14 to 18 days before being boiled for consumption, the
embryo floats on top of egg white and yolk, and the balut is called “mamatong”. The ideal
balut is said to 17 days old.

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 B. MARKET PROFILE

The business is a retail presented through stalls. The name of the store is AJG’s
Fried Balut. It is a sole proprietorship business which is owned and managed by Allen
Joy Macaraig Go. It is currently located and operating at P. Burgos St. Tacloban, City.
The name of the business is basically inspired from the initials of the owner.

Market refers to the group of consumer or organizations that is interested in the

product, has the resources to purchase the product, and is permitted by law and other
regulations the to acquire the product. They are the one who encourage the owner of the
business to make the business more efficient and effective.

The market coverage of the business will be the entire Tacloban City since the
location of the business is at P. Burgos St., Tacloban City. The place will be the perfect
location for the business since it is located in the downtown area of the city and it is also
close to the cafe’s and other business establishments.

Product Description

“Fried Balut” a peculiar kind of street food. Is dipped in a special mixture and
fried, which gives the eggs extra flavor. It is offered for dine-in and to-go orders,
which are fast and ready to eat in less time than it takes to finish a bingo game.
“Mallard ducks are used extensively in the production of balut – female and
male.”
Utensils:

 Pan (Pot)
 Ladle
 Strainer
 Bowl
 Toothpick

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Ingredients:

 60 Fertilized duck Eggs (17 days)

 1 can of evaporated milk
 6 pcs of eggs
 1 cup of flour
 1 tsp of salt
 1 tsp pepper
 1 liter of sprite

DIP:

I cup of ketchup

2 cups of mayonnaise

 Pinch of salt and pepper to taste (optional)

BATTER:

Step 1: In a bowl sift the first the flour and combine all dry ingredients.

Step 2: Evaporated milk, egg and sprite then stir for one direction only.

Step 3: Combine the wet and dry ingredients and mix it well.

PROCEDURE:

Step 1: rinse the duck egg

Step 2: in a pan bring to boil the duck eggs of at least 2 liters of water for 30 minutes ( let
it cool and set aside)

Step 3: crack the eggs and take off the shell. After which put the egg into the prepared
batter and coat it thoroughly.

Step 4: in a pan deep fry the marinated egg, over a medium heat and wait until lightly
brown. BEST SERVED WHEN HOT.

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Target Market

The target market of the business will be those people loves to eat exotic foods and
those who are looking for another type of taste of food. And to those tourists in the
city who want to try a traditional Pinoy food, which will be innovated the way how it
was cooked.

Market Segmentation
Table 1

Gender Age Economic Status

Male 13 and above Rich and Poor

Female 13 and above Rich and Poor

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C. ENVIRONMENTAL ANALYSIS

Strengths:

Organization strength refers to the edges of the business against its competitors.
They have the skills that by virtue of being rare are costly to imitate like efficient
management skills among many other possibilities. “AJG’s Fried Balut” has its internal
analysis of organization strength and being discussed as follows:

1. Quality and Affordability of the Product

The business is known for its good quality of fried balut in the whole Tacloban
City. They prioritize quality more than anything else. They make sure that the baluts
are processed accordingly well before distributing to retailers.

The Fried balut can be bought at P20.00 per egg. For this reason, customers are
patronizing the business and its products.

2. Competent Management

The owner-manager has highly developed management skills. Aside from being
knowledgeable in this kind of business (Fried balut business), she also has the ability
to coordinate the efforts of diverse creative employees and cover the overall marketing
strategy and execution of plans for the existing products amongst its competitors.

3. Strategic Business Location

P. Burgos St. is just the right location for the business. It is located to its biggest
market; existing and other potential customers can easily locate the business for it is
settled just along the highway.

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Weaknesses:
This refers to the edges of the competitors against the business.

1. Limited Delivery Services

The business does not bring their products to their market other than Tacloban City.
Buyers would just text or call the owner for orders and would come over the business
when their orders are ready for pick-up.

2. Lack of Regular Supply of Eggs

Since the business does not have their own egg-laying ducks, they need to order
eggs from other suppliers. This means that they must make timely orders to ensure
continuous production activities.

Opportunities:
This is the external or uncontrollable factor of the business which is the chance to do
something for the accomplishment of the firm’s goals.

1. Provide Employment
To provide a subsistence for living by augmenting the employed workers in
Tacloban City
2. Adapt New Technology
Technology nowadays has something to with the business industry. It helps the
business function well and operates in an advance way to make the business more
progressive.

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Threats:

This is the external or uncontrollable factors of the business which is unfavorable and
which may cause not to accomplish the firm’s goals.

1. Calamities

Eastern Visayas is truthfully prone to calamities due to the typhoons passing our
region. That’s why it is really inevitable that losses and financial obligations may arise due
to these events.

2. Diseases
Bird Flu can affect the business because the consumers will hesitate to buy and eat
balut. It makes the business to stop the operation.

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 CHAPTER II

COMPANY BACKGROUND

A. COMPANY PROFILE

Statement of Vision and Mission

Vision:

To be the producer of good quality and affordable fried balut in the entire

Tacloban area and its nearby municipalities.

Mission:

To produce and distribute good quality and affordable fried balut for its valued
customers in Tacloban.

B. COMPANY POSITIONING

TAGLINE
“Taste the exoticness with a twist.”

The traditional exoticness of balut that will be offered to the market and is already
improved by taste and its food presentation.

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C. BRAND CONSUMER PROFILE

Generic - Balut Egg

Servings: 1

Calories 80 Sodium 102 mg

Total Fat 5g Potassium 0 mg
Saturated 0g Total Carbs 1g
Polyunsaturated 0g Dietary Fiber 0g
Monounsaturated 0g Sugars 0g
Trans 0g Protein 7g
Cholesterol 60%
Vitamin A 0% Calcium 0%
Vitamin C 0% Iron 0%

*Percent Daily Values are based on a 2000 calorie diet. Your daily values may be higher
or lower depending on your calorie needs.

Copyright 2005-2017 MyFitnessPal, Inc.

http.//www.investopedia.com

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Logo and Label

AJG’s Food Stall

cC
“AJG Fried Balut”
cCCCompany

cCompany

“Taste the exoticness, with a twist”

P. Burgos St. Tacloban City

09154942739

www.ajg.com.ph

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 CHAPTER III

IDENTIFIED MARKETING OPPORTUNITY

To achieve the traditional opportunities of the product “Fried Balut” the business will:

1. Improved the product in order to offer new taste to the customers, still the intention of
the proponents is to retain the traditional way of serving the egg.
2. Make product information about the product and promote it to public.
3. Introduce to the tourists in the city by means of publicizing the product for them to be
aware that such product exists.
4. Provide an option for the consumers who are fond of eating balut, to be able to penetrate
the market.
5. Be able to have a share in the market.
6. Continuous improvement of the business.

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 CHAPTER IV

PROPOSED TARGET MARKET

The strategic planning process approach will be use by the business to determine how
to introduce the product, the business will:

1. Let the relatives and friends try the product.

2. Make enough product samples so that the general public will taste the product.
3. Use games to attract attention of the people.
4. Create a jingle that can easily be recognized.

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 CHAPTER V

MARKETING OBJECTIVES

OVERALL MARKETING OBJECTIVES

1. To provide the customer a best quality of the product by way of proper food
handling.
2. To help the local government of Tacloban City by way of complying with the
required permits and paying of taxes.
3. To provide employment to the people of Tacloban City.

SPECIFIC MARKETING OBJECTIVES

1. To be able to achieve at least 15% increase of sales per annum.
2. To be able to expand the business in Tacloban City.
3. To be able to return the initial investment of the sole proprietor after 6 months of
operation.
4. To be a choice in the market in case of unavailability of the same nature of product.

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 CHAPTER VI

MARKETING STRATEGIES

DIFFERENTIATION STRATEGY

1. Offer a two variations of balut the ordinary and gourmet.

2. Produced a distinct and palatable taste that makes the customer salivate more.
3. Create an attractive packaging that ensnare the eye of a prospect customer.
4. Elongated life shelf than the ordinary balut.
5. Promote an intensive proper food handling and sanitation.

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 CHAPTER VII

MARKETING MIX

PRODUCT

PRICE

SOLUTION: Selling Price = DM+DL+OHE=TPC/NPP+MU%

SP = DM+DL+OHE=TPC/NPP=MU%

= 195,000 + 78,000 + 9,297

+ 10%
15,000 units
%%
= 282,297
+ 10%
15 ,000

= 18.82 + 10%

= 18.82 + 1.88

SP = P20.7 or P21.00

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A. PLACE

REMANDABAN

BALUT

CENTER
AJG’s

FRIED BALUT

FINAL
CONSUMER

B. PROMOTION

1. Tarpaulin and Streamers

The proponent will put up streamers and tarpaulins in different strategic areas with
information about the business, its address and contact information and most especially
the product offered.

2. After-Sale Customer Survey

The business will provide suggestion cards to seek feedback on how the product
which has been offered to the consumer will be improved.

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3. Free Taste Program
Free-taste is a frequently used promotional strategy. The idea is to promote the
product and put the business name in front of the public rather than make money
through a hard-sell campaign. People like to eat food especially when it is for free.

4. Social Media

This is the most effective way in promoting a business or product by creating a page
and official account in Facebook, Twitter, Instagram and etc. since almost all of us now
is using social media in all aspects.

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 CHAPTER 8

Financial Forecast

A. Sales Volume
TABLE 2

Day Weeks (6) Month (4) Year(12)

60 pcs 360 pcs 1,440 pcs 17,280 pcs

B. Marketing Budget
TABLE 3

Operating Expense: Amount

Advertising Expense 1,000.00

Permits and licenses Expense 1,500.00

Rent Expense 18,000.00

Salary Expense 78,000.00

Transportation Expense 14,400.00

TOTAL P112,900.00

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C. Income Statement:

AJG's FOOD STALLS

INCOME STATEMENT
For the year 2018
2018
Sales 345,600.00
Less: Cost of Goods Manufactured and Sold 195,120.00
Gross Profit 150,480.00
Less: Operating Expenses 112,900.00
Income Before Taxes 37,580.00
Less: Income Tax 3,637.00
NET PROFIT P33,943.00

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