1. Question: Demand 18065, Supply 17085.

980 MT gap
Is this Philippine ? National Annual? 5% Gap too thin
Answer: Sir we already revised the supply we have found out that there is 1111.15 tons of
imported cashew nuts in the year 2009 and grows to 3070.07 tons for the 5 year period which
will result to 6.58% gap between the demand and supply of cashew nuts. Philippines need to
import cashew nuts in order to sustain the insufficiency of production

2. Question: But the pricing is still expensive in relation to peanut or cornik, what are the
substitutes?
Answer: Sir the price is still expensive in relation to peanut or cornik because the input raw
cashew nuts are expensive in contrast to raw peanuts and cornbits. To negate this problem ,the
company will offer small packs of roasted cashew nuts products sealed in a resealable pouch
that will be affordable for the consumers. The prices of resealable pouched products were Php
85/95 for 100g Roasted and Salted that can be sold by the retailers at Php 125 (maximum
suggested retail price) which is competitive in the market. Price list of the competitor’s product:
Edilyn Cashew nuts 100g Php 126.5, Kimmy Roasted Cashew 140g Php 118.80, Growers Salted
Cashew 80g Php 88.35.
3. Question: No discussion as to how customer pick a cashew in favour of other nuts from lowest
level (e.g. Peanuts, Pistachio, Almond )
Answer: The proponents conducted a survey and the results may find at page 27-28 of the
study. Since the price of cashew nuts is quite expensive compared to peanuts, many consumers
prefer to buy the latter. Based on the graph, Price got the highest percentage when it comes to
choosing what kind of nuts to purchase so it clearly shows that most consumers often look for
the price first before the taste/quality of the nuts. With this result, we can say that peanuts is
their top choice for it is the cheapest among other types of nuts and also the taste of peanuts
are not too different from other kind of nuts. However, cashew nuts is more preferred than
almonds and pistachios although they are also delicious because some consumers are unfamiliar
with these and their price is higher than cashews so they stick on purchasing lower priced
products as long as it satisfies them.
4. Question: Third Paragraph discusses already on how to be distributed. But the excess demand in
relation to price for the particular market area (not defined) is also not discussed
Answer: Sir there is an agreement between the business and its target market, which are the
distributors which can be found on page 35, the restaurants and pasalubong centers that the
products that they have purchased are considered sold by the business and that they shall bear
the loss of products that are unsold.
5. Question: Critical assumption
 No discussion on how to produce the product
 (3rd paragraph) How to market?
(First, Layout what is happening?)
(Situational Analysis then based on your SWOT discussed your Marketing Strategy)
Answer: Yes sir, we already follow your suggestions and we revised the 3rd paragraph of the
executive summary we put the discussion on how to produce the product and how to market it.
6. Question: Pricing in relation to competition?
Answer: Noted sir, please refer to Chapter 2: Industry Analysis – E. Competitors’ Profile for the
prices of cashew nuts in the existing market and Chapter 4: Market Feasibility – B. Marketing
Mix, 3. Price for how the proponents came up with their prices.
7. Question: Sustainable sourcing of raw materials?
Answer: Sir the company will have Felicita’s store as its main supplier of cashew nuts as they are
the main supplier of nuts in metro manila and they have a sustainable quantity of supplies of
cashew nuts every month. They offer their products at lower price with high quality but you
must buy at bulk quantity. As for the the bottles and reasealable pouch we have REMS Synthetic
Polymer Mfg and Entrepouch company both are well known in producing such products at
massive quantity and for the other spices we have the billy and lita store, one of the most
reliable source of spices in Binondo, Divisoria.

Notes:
 Financial Statements not yet reviewed, pending validation supply/demand assumption
(1st year – 5th year)