BUSINESS PLAN

OF
PASALUBONG REPUBLIC

Submitted To:
Mrs. Brenda Dinio
Opportunity Seeking

Submitted By:
Jayvee Alpanta
Irish Joy Aguilar
Marnel De Leon
Ronn Mikko Camelon
Rocelle Baltazar
II. COMPANY SUMMARY

2.1 Company Name

Pasalubong Republic

2.2 Company Description

 Pasalubong Republic is an example of Corporation business, because it compose of

5 people to handle the company.

 Our company focus on creating new idea or recipe especially on vegetables.

 As the only company that provides healthy and pure organic snacks here in Gapan

City, we can say that our business can stand along the years.

2.3 Company History

Pasalubong Republic came from the concept of being addicted of many people on

different kinds of snacks. As a millennial were having an idea about that matter, why we

don’t start a business for those who love fries, chips and other kind of snacks, but in a

healthy way?

For us eating is not just a hobby or a daily routine, but also a lifestyle that can affect

the mindset of the people. Like being health conscious on what they eat, if they’re going

to look more beautiful on that food, or going to be more strong and flawless. Because of

that we inspired to build a business that can satisfy their concerns about their health and

hungry tummy.

As of today people need a healthy but affordable product, so we think Pasalubong

Republic can be a good answer to their needs.

2.4 Company Logo, Mission and Vision

As you can see our logo compose of color green, it’s because we prepared to use

organic ingredients on our products. And there’s a word say ‘fresh’ so our consumer can

assure a 100% fresh ingredients on our product. And also in business color green symbolize

wealth.

Mission:

A business that aims to provide clean, high-quality and organic products to sustain

the healthy options of the consumers and be known in the food processing industry

Vision:

As the leading producer of quality organic processed pasalubong promoting natural

products that satisfy the consumers and encourage them to eat healthy snacks.
 2.5 Company Location and Facilities

Our main store is about to build along the bus stop in Bucana Sto.Nino, it replaced the
former branch of 7/11. We choose this because it is very easy to find and very convenient to
those who travel.

We decided to build this floor design for our customer that want to enjoy our product
inside our store. This design is based from coffee shop, we want our customers are feeling
comfortable and we also serve a different kind of drinks match on our organic snacks.
IV. MARKETING

4.1 MARKET ANALYSIS

4.1.1 MARKET SEGMENTATION

 Under this segmentation, our product focuses om both male and female age starting 5

years and above. We primarily focuses on adults that has the potential to purchase our

products.

 Our target consumers are from lower to middle income class.

 Our target consumers are students, families and travelers who are most likely to enjoy

this kind of snacks anywhere.

4.1.2 TARGET MARKET

 Our product focuses on both male and female.

 Customers that ages 5 years old and above, has the potential to purchase cheaper

snacks, and those that are residing in or near Nueva Ecija are our target consumers.

 Those who are traveling along Nueva Ecija and for people who are health conscious

yet loves to eat chips for their snacks.

4.1.3 MARKET NEED

Most food manufactured today composed of chemicals that may cause negative

effect on our body in the long run. Sickness arising nowadays and people started to think

consciously about their health. Our company wanted to aid their concerns and would like

to provide a product that will help them eat wisely.

 Papaya is a good source of vitamins and nutrients that will help our body become

stronger. It has an anti-inflammatory that helps in arthritis. For the women, it is good help

in regulating their menstrual cycle and provides good looking skin for it is known to have

anti-oxidants and good anti-cancer aid.

Our product is something new in the eyes of the costumer. It is unique in a way that

consumers would enjoy the snack while at the same time maintaining their good health

condition.

4.1.4 COMPETITION

Commercial potato chips brand and imported chips are most likely the great

competitors of this product. Those brands that has been established since early 90’s are still

soaring up till now. They have been offering a lot of variants for their products but for a

very expensive price.

We formulate a way on how to compete with them by adding different flavors to

our papaya chips so that the consumers will not find it boring. We stated the nutritional

facts of our product so that those health conscious consumers will know that we are health

friendly. We also improved the packaging in a manner that will catch the attention of

consumers.

Unlike other products, it has healthy benefit that boosts immune system and it aids

in digestion and helps maintain weight. The flavor of papaya mixed with different kinds of

flavor is something that will satisfy consumers.

 4.1.5 BARRIERS TO ENTRY

Commercial brands are most patronized for they were able to launch their product

through media. Consumer will be able to know what are their products and will be looking

for it on the market right away.

Unlike our product that may not be televised due to it’s high cost. We may not enter

the market easily for we have to invest a lot for the marketing and selling campaign.

4.2 MARKET TRENDS

Due to changing lifestyles, consumers are not only opting for easy food options but

also looking for authentic and natural snack options with health and wellness attributes,

which influencing per capita expenditure in the savory snack products including potato

chips. Additionally, the per capita expenditure on savory snack products is growing in

developing economies such as India and China and is supported by rising disposable

income in the countries. In developed economies, consumers are trading up and spending

more on premium and healthy varieties of savory snacks, while consumers in emerging

countries including Brazil, China and India, typically base their snack choices on product

availability and experimentation.

4.3 MARKET GROWTH

The local papaya chips market is forecasted to increase by 4.40% during the year (2019-

2024)

 Product variety, a mix of regional snacks flavors, changing consumer lifestyles and growth

in distribution channels are major factors contributing to increasing sales of papaya chips

across the Country.

 The introduction of healthier alternatives, like the low-fat and low-sodium chips, in the

emerging markets also influencing the growth of the papaya chips market.

 However, there are many chips substitutes available in the market, and this could be a

major threat and likely to hamper the market growth at some extent during forecast period.

4.4 DISTRIBUTION PATTERNS

 Pasalubong Republic special Papaya chips can buy through online or you may visit us

directly on our store.

 If our dearest costumers are being lazy to come on our store, they must try our online shop

with free delivery in any part of Gapan City if they buy a dozen of our product.

 As a starting business with less budget, we preparing to distribute our products by

ourselves. In that case we may have a chance to talk to our costumer, heard some of their

comments, suggestions and recommendation.

4.5 PROMOTION STRATEGY

As a part of new generation where in technology is one of the most powerful and

useful way on how to take people attention. We decided to make an online store where we

post our products, prices, location of our store and even the promos were given.

4.5.1 POSITIONING STATEMENTS

For those who are health conscious consumers, Pasalubong Republic is the only

company that provides fries and chips using papaya that delivers tasty, healthy and

nutritious snacks located at Gapan City Nueva Ecija, because only Pasalubong Republic is

suited for all kinds of people that maintains quality product and has nutritional value at an

affordable price.

4.5.2 MARKET PENETRATION

Entering the market with lot of huge competitors is very tough task to do, because

you must know your limitations and the capacity of your company. In Pasalubong Republic

we focusing on how to take people attention by giving them the quality that they deserve

and a product that may satisfy their needs.

4.5.3 ADVERTISING

Without advertising, the company cannot make the consumers aware of the product.

They can broadcast their advertisements on television and radio. But it cost too much so

Pasalubong Republic cannot afford that kind of advertisement, so we prepared to use Social

media on promoting our product such as, facebook, twitter, Instagram and other website

that usually use by an ordinary people.

 4.5.4 PRICE STRATEGY

Pasalubong Republic already has the advantage of lower prices of chips, but we

need to overcome the perception among consumers that the cheaper means low quality.

We can justify the reason of low price by mentioning the ingredients of our product.

4.5.5 PUBLICITY

In able for us to be known in public or in the city we must double our effort on

promoting our product. As a student we can sell our product in school, it’s easy to sell it if

we add some stories on how the papaya concept starts.

III. PRODUCTS AND SERVICES

3.1 Products and Service Description
VII. OPERATION AND IMPLEMENTATION

7.1 Operation Objective

 To introduce nutritious and healthy snacks

 To build a strong management
 To maintain and improve the income of company
 To give satisfaction

7.2 PROCESS FLOW CHART FOR MANUFACTURING THE

PRODUCTS/SERVICES

PROCESS FLOW CHART FOR MANUFACTURING PAPAYA CHIPS

• Peel and cut the fruits

1st STEP

• Add flavorings to the sliced papaya

2nd STEP and let it rest for 30 minutes

• Deep fry.
3rd STEP • Wait until it turns golden brown.
7.3.1 PROJECTED VOLUME OF PRODUCTION

MONTH NO. OF PRODUCT PRODUCE (QTY)

JANUARY 900 pcs.

FEBRUARY 900 pcs.

MARCH 900 pcs.

APRIL 900 pcs.

MAY 900 pcs.

JUNE 900 pcs.

JULY 1,125 pcs.

AUGUST 1,125 pcs.

SEPTEMBER 1,125 pcs.

OCTOBER 1,125 pcs.

NOVEMBER 1,125 pcs.

DECEMBER 1,125 pcs.

Total no. of product produced 12,150 pcs.

As you can see, the projected volume of production was increased from January to June by

20% and from July to December by 50%. We used 20% as a projected volume because from the

month of January to June, this is called the average season. While from the month of July to

December, we used 50% because this is the peak season.

7.4 Raw Material

Table 7.4.1 Cost of Raw Materials

Item Unit Price Per Pack Per Day Monthly Total

Expenses
Papaya ₱20/kg 250 kg 6,250 g 187.5 kg ₱ 3,750.00

Salt ₱20/kg 2g 50 g 1.5 kg ₱ 30.00

Flavorings ₱50/kg 18 g 450 g 13.5 kg ₱ 675.00

Vegetable oil ₱35/kg 25 mL 625 g 18.75 kg ₱ 656.25

Total expenses per Month ₱ 5,111.25

Table 7.5 Projected Cost of Raw Materials

MONTH COST OF PRODUCTION

JANUARY ₱ 6,133.5 (20%)
FEBRUARY ₱ 6,133.5 (20%)
MARCH ₱ 6,133.5 (20%)
APRIL ₱ 6,133.5 (20%)
MAY ₱ 6,133.5 (20%)
JUNE ₱ 6,133.5 (20%)
JULY ₱ 7,666.88 (50%)
AUGUST ₱ 7,666.88 (50%)
SEPTEMBER ₱ 7,666.88 (50%)
OCTOBER ₱ 7,666.88 (50%)
NOVEMBER ₱ 7,666.88 (50%)
DECEMBER ₱ 7,666.88 (50%)
Total cost per year ₱ 82, 802.25
 The projected cost of raw materials was quite increasing from the month of January to June

by 20% because many people are not capable of buying our products because this is the season of

expenses. While from the month of July to December it is increasing by 50% because of peak

season.

Table 7.5.1 Projected Cost of Raw Materials for the next 5 years

YEAR PROJECTED COST OF RAW MATERIAL

1ST YEAR ₱ 82,802.25

2ND YEAR ₱ 91,082.48 (10%)

3RD YEAR ₱ 99,362.70 (20%)

4TH YEAR ₱ 107,642.925 (30%)

5TH YEAR ₱ 115,923.15 (40%)

The projected cost of raw materials is increasing by 10% every year because it becomes

more popular and buyable to our customers.

7.6 LIST OF OFFICE FURNITURE AND FITTINGS

Table 7.6 List of Furniture

TYPE PRICE/UNIT QUANTITY TOTAL AMOUNT

Table ₱ 550.00 4 ₱ 2,200.00
Chair ₱ 250.00 12 ₱ 3,000.00
Computer ₱ 10,000.00 1 ₱ 10,000.00
Printer ₱ 4,000.00 1 ₱ 4,000.00
Air conditioner ₱ 7,900.00 1 ₱ 7,900.00
₱ 27,100.00

7.7 Operational Equipment

ITEMS PRICE/UNIT QUANTITY TOTAL COST

Deep Fryer ₱ 1,500.00 1 ₱1,500.00

Caserole ₱ 250.00 2 ₱ 500.00

Tongs ₱ 50.00 2 ₱ 100.00

Gas ₱ 700.00 1 ₱ 700.00

Gas Stove ₱ 950.00 1 ₱ 950.00

Face Mask ₱ 15.00 5 ₱ 75.00

Hand Gloves ₱ 60.00 3 ₱ 180

Total Php4,005.00
VIII. MANAGEMENT SUMMARY

8.1 ORGANIZATIONAL CHART

CEO

Vice President for

Vice President for sales
Production

Sales Manager Production Manager

8.2 SCHEDULE OF TASK AND RESPONSIBILITIES

Manager- He is the one who operate all the operation, they are the one who lead the

organization.

Cook- It is the person who prepares or cooks all the products for the customer.

Packager- It is he person who puts labels to their products.

Cashier- It is the person who recieves the money that the costumers pay.
8.3 LIST OF OPERATION PERSONELL

Jayvee Alpanta – Manager

Marnel Deleon – Financial Manager

Irish Aguilar – Production Manager

Rocelle Baltazar – Sales Manager

Mikko Camelon – Operating Control

8.4 DAILY ROOSTER-

– Our store is open everyday starting from 8:00 am to 10:00 pm There are 4

personnel will stay in our store to sell our product.

8.5 SCHEDULE OF RENUMERATION

PERSONNEL MONTHLY SALARY YEARLY SALARY

Manager ₱ 12,000.00 ₱ 144,000.00

Cashier ₱ 7,500.00 ₱ 90,000.00

Cook ₱ 9,000.00 ₱ 108,000.00

Packager ₱ 6,000.00 ₱ 72,000.00

Total ₱ 414,000.00
IX. FINANCIAL PLAN

9.1 SALES FORECAST

Pasalubong Republic expects to increase their sales as the peak season

approach. The table below shows the monthly sales of Pasalubong Republic

business.

9.1.1 PROJECTED SALES PER YEAR

MONTH VOLUME OF UNIT PRICE TOTAL SALES

PRODUCTION

JANUARY 900pcs. ₱ 100.00 ₱ 90,000.00

FEBRUARY 900pcs. ₱ 50.00 ₱ 45,000.00

MARCH 900pcs. ₱ 35.00 ₱ 31,500.00

APRIL 900pcs. ₱ 35.00 ₱ 31,500.00

MAY 900pcs. ₱ 50.00 ₱ 45,000.00

JUNE 900pcs. ₱ 50.00 ₱ 45,000.00

JULY 1050pcs. ₱ 35.00 ₱ 36,750.00

AUGUST 1050pcs. ₱ 50.00 ₱ 52,500.00

SEPTEMBER 1050pcs. ₱ 35.00 ₱ 36,750.00

OCTOBER 1050pcs. ₱ 35.00 ₱ 36,750.00

 NOVEMBER 1050pcs. ₱ 100.00 ₱ 105,000.00

DECEMBER 1050pcs. ₱ 100.00 ₱ 105,000.00

Total Sales per Year 11,700pcs. ₱ 620,250.00

This table shows our monthly projected sales, by how many products are sold for a month

and the total of yearly sales to have a projection on our net income/loss.

TABLE 9.1.2 PROJECTED SALES for 5 Years

YEAR SALES

Year 1 ₱ 620,250.00

Year 2 ₱ 682,275.00 (10%)

Year 3 ₱ 744,300.00 (20%)

Year 4 ₱ 806,325.00 (30%)

Year 5 ₱ 868,350.00 (40%)

9.2 PROJECTED INCOME/LOSS

9.2.1 PROJECTED INCOME STATEMENT

INCOME STATEMENT OF PASALUBONG REPUBLIC

(2019-2020)
Sales ₱ 620,250
Expenses:
Cost of Goods Sold(production cost) ₱ 61,000
Rent ₱ 42,000
Utilities (Electricity & Water) ₱ 30,000
Advertising ₱ 1,500
Salary ₱ 234,000
₱ 368,000
Net income/Loss ₱252,250.00

9.3 PROJECTED INCOME STATEMENT FOR THE NEXT 5 YEARS

TABLE 9.3.1 PROJECTED INCOME/LOSS OF PASALUBONG
REPUBLIC PER YEAR
YEAR PROJECTED INCOME/LOSS

Year 1 ₱ 252,250

Year 2 ₱ 277,475 (10%)

Year 3 ₱ 302,700 (20%)

Year 4 ₱ 327,925 (30%)

Year 5 ₱ 353,150 (40%)

 This table shows our yearly income which does not lead to a net loss. This means our
company has a high probablity of being a successful business.

9.4 SUMMARY OF PROJECTIONS

TABLE 9.4.1 PROJECTED INCOME/LOSS OF PASALUBONG
REPUBLIC FOR 5 YEARS
YEAR SALES COST OF INCOME
PRODUCTION
YEAR 1 ₱ 620,250 ₱ 61,000 ₱ 252,250
YEAR 2 ₱ 682,275 ₱ 63,000 ₱ 277,475
YEAR 3 ₱ 744,300 ₱ 69,000 ₱ 302,700
YEAR 4 ₱ 806,325 ₱ 72,000 ₱ 327,925
YEAR 5 ₱ 868.350 ₱ 77,000 ₱ 353,150

Our projected sales for a year has overcome the expenses of our product, which leads to a
high income providing us to have funds to sustain our other costs in our store.