FEASIBILITY STUDY

“JERICK’S SPECIAL LONGGANISA”

( WITH IT’S ONLINE PRESENCE )

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TABLE OF CONTENTS
EXECUTIVE SUMMARY……………………………………………………………………………2-4
DESCRIPTION OF PRODUCTS AND SERVICES........................................................................................ 5
TECHNOLOGY CONSIDERATIONS ........................................................................................................ 5
PRODUCT/SERVICE MARKETPLACE .................................................................................................... 6
MARKETING STRATEGY .................................................................................................................... 6
ORGANIZATION AND STAFFING……………………………………………………………………..7
SCHEDULE………………………………………………………………………………………….8
FINANCIAL PROJECTIONS………………………………………………………………………..9-11
FINDINGS AND RECOMMENDATIONS…………………………………………………………..……12

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EXECUTIVE SUMMARY
The Vigan Longganisa is a small and plump native sausage,
good for about two or three bites.
It is garlicky and has a yellowish color. Although it is
eaten anytime, even as a bread filling, it is traditional
favored as breakfast fare together with fried eggs and steamed
or fried rice. It is best dipped in Ilocos vinegar with plenty
of chili, garlic and onions.
Filipinos cook them in a pan with water. The longganisa
cooks in its own fat after the water evaporates and is then
cooked further until it slightly caramelizes. A tip to avoid
crumbling is to place it in the freezer for a while before
frying it.
Vigan longganisa is said to be an influence of the Mexican
salami. The tradition of making this native has existed since
the period of the Spanish galleon trade. It is distinct from
other Philippine sausages because of its use of the local sugar
cane vinegar and Vigan-grown garlic, which are major products of
the city as well.
The Biguenos are so fiercely proud of their longganisa that
they have made it as the product they would like to be most
known for. They had it recognized as the cities One Town, One
Project (OTOP) selection under this national government program.
They’ve endeavored throughout the years to be the top longganisa
producer in the Philippines.
Longganisa (sometimes spelled longanisa, longaniza,
langgonisa, langgoniza) are Filipino chorizos or sausages.
These cured sausages are known in many Philippine regions.

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 The famous types of longganisa originate from the towns of
Vigan , Lucban, and Guagua. Pork is the most preferred meat
used in making this sausage. Other alternatives are chicken,
beef, and tuna.
Longganisa is a sweet concoction made with
meat and flavorings. time if we could make Well, the
thought of making each tiny Longganisa just seemed
too much work. Longganisa would be easier. Same
taste, same texture but with a much cheaper price.
The essence of e- commerce in our research
is rapidly growing business that most people are now
eager to run with. As the Internet has covered almost
all the world including every nook and corner, people
now can connect with the opposite pole wi thin a few
second at minimum price. So, the marketing through
internet has become easy and any product of any place
is available everywhere. It means your business can
spread worldwide in short span.
More and more businesses owners are going
for online business as it can bring more potential
clients to them. For any kind of product, whether it
is medicinal, home appliance or clothing, you can
view your required the items from home with the help
of Internet marketing websites and place order for
the items you want. And on time, you will get the
products at your threshold.

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DESCRIPTION OF PRODUCTS AND SERVICES

Jerick’s Special Longganisa is determined to become a daily

necessity for local Longganisa in an Eggshell dessert addicts, a
place to dream of as you try to escape the daily stresses of
life and just a comfortable place to meet your friends or to
read a book, all in one. With the growing demand for high-
quality gourmet Longganisa in an Eggshell dessert and great
service, Jerick’s Special Longganisa will capitalize on it’s
proximity to the Barangay Partida 1, Guimba, Nueva Ecija to
build a core group of repeat customers. Jerick’s Special
Longganisa will offer its customers the best prepared Longganisa
in an egg shell in the area that will be complimented with other
pastries, as well as free books that its patrons can read to
enjoy their visit.

TECHNOLOGY CONSIDERATIONS
Jerick’s Special Longanisa will need to scale up their IT
infrastructure to move toward offering an online marketplace
from which customers may purchase our products. Customers demand
a simple and easy way to securely conduct online transactions.
Additionally, new online marketing functionality must be
considered in order to target existing and potential customers
through methods such as e-mailing lists, promotional
advertisements, and loyalty discounts.

While Jerick’s Special Longanisa maintains a small information

technology (IT) group, the expertise does not currently exist
internally to design, build, and implement the sort of extensive
online platform required for this effort.

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PRODUCT/SERVICE MARKETPLACE

Jerick’s Special Longanisa will distribute online

purchases via direct shipping from the nearest store location.
This will allow the store to provide timely shipping, reduce
shipping costs, and eliminate the need for a central
warehouse/facility from which to store and ship its products.
Such a facility would require a significant capital investment
as well as increased operation and maintenance costs. However,
based on anticipated growth projections, Longanisa must ensure
that all store locations maintain adequate inventories on hand
to satisfy customer demand.

MARKETING STRATEGY
As the customers today are smarter than before,
they like to have different kind of things from
different part of the world. Internet marketing has
made it easy and sitting at home, customers can
search for the products they want to buy and can
order it. Before go for buying it, customers can view
the product. Including all the facilities and
convenience that both the customers and the business
owners may get from the e-commerce marketing, there
is much importance of online marketing.

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ORGANIZATION AND STAFFING

The marketing program for the product

Longganisa is situated in the area not high
traffic count because it is located at Barangay
Partida 1, Guimba, Nueva Ecija , which has a great
advantage in achieving the kind of atmosphere the
business would like to have.
Based on the market analysis, the product has an
edge over its competitors. Because it capitalize on
its unique concept and its flavors gives reference to
the children imagination by which art, together with
other children parts, is created.

Organizational Chart

PROPONENTS

Staff

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SCHEDULE

In starting the operation of the business, the owners

should complete the necessary documents and requirements needed
for the legalization; this stage of business is organized in a
formal manner, which requires registration in various regulating
government agencies.
Before a partnership can operate legally, it must first to
comply with certain level registration that are summarized as
follows:
Place of Registration
1. Security and Exchange Commission (SEC)
2. Department of Trade and Industry (DTI)
3. City of Municipal Hall Permit (Mayor’ s Permit)
4. Bureau of Internal Revenue
5. Social Security System
6. Other Agencies as may be required
In building business there are certain requirements to make
specific business legal. If the following cannot be obtained the
operation will not function well.
BIR 1902 DTI application
Business Permit For employees: SSS,PhilHealth,Pag- ibig
Barangay Clearance Declaration of real property
tax
Fire Inspection Certificate SEC
Sanitary plumbing Permit Building Permit

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 FINANCIAL PROJECTIONS

Projected financial statement

Table 1.1 Shows the Projected Balance Sheet of Jerick’s Special

Longganisa

2015 2016 2017 2018

Assets

Current
Assets
Cash 654,160.00 1,422,640.00 2,259,616.00 3,172,472.00
Prepaid rent 30,000.00 30,000.00 30,000.00 30,000.00
Merchandise 9,251.00 10,176.10 11,193.71
inventory 8,410.00
Total 1,461,891.00 2,299,792.10 3,213,665.71
Current 692,570.00
Assets

Fixed Assets
Machineries 11,520.00 11,520.00 11,520.00 11,520.00
and
equipment
Less: Accu. 2,200.00 2,200.00 2,200.00 2,200.00
Depreciation
Total Fixed 9,320.00 9,320.00 9,320.00 9,320.00
Asset

Php715,610.00 Php1,484,931.00 Php2,322,832.10 Php3,236,705.71

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Total Assets

Liabilities 715,610.00 1,484,931.00 2,322,832.10 3,236,705.71

and owner
equity

Financial Analysis

Profitability

Net Profit Margin = Net income after tax

Sales

T a b l e 1 . 2 S h o w s t h e N e t P r o f i t M a r g i n o f Jerick’s Special Longganisa

Year 1 Year 2 Year 3 Year 4 Year 5

P287, 040 P331, 520 P373, 024 P418, 144 P478, 542

672,000 739,200 813,120 894,432 983,875

.43 .45 .46 .47 .49

Operating Profit Margin = Profit before taxes

Sales

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T a b l e 1 . 3 S h o w s t h e O p e r a t i n g P r o f i t M a r g i n o f Jerick’s Special Longganisa

Year 1 Year 2 Year 3 Year 4 Year 5

P358, 800 P414, 400 P466, 280 P522, 680 P598, 178

672,000 739,200 813,120 894,432 983,875

.53 .56 .57 .58 .60

Gross Profit Margin = Gross Profit

Sales

T a b l e 1 . 4 S h o w s t h e G r o s s P r o f i t M a r g i n o f J e r i c k ’ s Special Longganisa

Year 1 Year 2 Year 3 Year 4 Year 5

P268,320 P295,152 P324,667.2 P357,133.92 P392,847

672,000 739,200 813,120 894,432 983,875

.40 .40 .40 .40 .40

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FINDINGS AND RECOMMENDATIONS
Based on the information presented in this feasibility study,
it is recommended that the store approves the online sales
initiative and begins project initiation. The findings of this
feasibility study show that this initiative will be highly
beneficial to the organization and has a high probability of
success. Key findings are as follows:
Technology:
 Will utilize existing technology for the betterment of
the product and its sale.
 Initiate technology to operate and maintain for a
relatively low cost.
Marketing:
 Jerick’s Special Longanisa can expand customer base
beyond geographic areas where stores are currently
located.
 Jerick’s Special Longganisa is able to differentiate
itself from its competitors and will utilize incentive
programs to target new consumers.
 Jericks Special Longanisa will seek to reach additional
customers via social networks and email campaigns.
Organizational:
 Minimal increases to staffing are required with no
changes to organizational structure.
 No new facilities or capital investments are required.
Financial:
 Jerick’s Special Longganisa will be in position to
capture greater market share by maintaining both an
in-store and online presence.

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