PONTEVEDRA FOOD NIGHT MARKET

A Feasibility Study
Presented to the Faculty of the Graduate School
Filamer Christian University
Roxas City

In PartiallFulfillment
Of the Requirements for the Degree
Master in Business Administration

by
JAY MARTIN BICLAR

Chapter I
INTRODUCTION
Project Background Rationale
A Night Market is a grouping of temporary outdoor stalls operated by petty
traders where products are displayed for sale. The night market popularity steamed
from the convenience they provided for the local residents to do shopping for their
household needs within their residential areas. Thus, they provided an alternative
shopping option. Additionally, the night markets, with their friendly and relaxed
atmosphere, allowed the customers to enjoy the diverse environment, the wide
choices of freshly cooked food and fresh vegetables at affordable prices. The
interactions and mingling of local residents from various ethnic backgrounds could
further strengthen community spirits and solidarity. The atmosphere, the sight, the
smell, the sound, and the food were among the factors that contributed to repeat
visitations. Visiting the night market had become a popular leisure activity for the
locals. They would stroll from one end of the night market to the other end, spent time
looking over the goods, greeted some friends along the way, acknowledged the
traders, asked for the prices of products, bargained for some discounts, and they may
chose to buy or just walked on.
The night markets have the potential to become the next popular
entrepreneurs, since a very small amount of investment is required to start a business
and the traders are able to gain a huge income from the night market business (Grice,
1989). Night markets have been existed for long enough to blend-in with the
community activity, popular for their variety of food, convenient for access and
offering affordable price. The night market business operated at a specific place or

lots which are near the residential area. Night markets are often set-up by rows of
stalls selling various types of products. For the food and the beverage stall the
products are mainly produced by the seller themselves. Khalilah (2010) stated that the
business typology of the suburban night market consists of food and beverages,
house-hold product, grocery needs like vegetables, fruits, fish and meat, clothes, and
other range of everyday merchandise sold at affordable price.
Urban revitalization practitioners whether from government, the private
sector, or from community-based organizations are beginning to recognize that new
definitions of urban revitalization and economic development are needed today.
These strategies understand the importance of public spaces that connect everything
together, and that public gathering places are inextricably related to the potential for
economic opportunity and upward mobility of lower-income people. One of the most
obvious, but perhaps least understood, methods of enhancing social integration in
public spaces and encouraging upward mobility are public markets. Increasingly,
community leaders and local government see public markets as a means of addressing
some of the more vexing problems of our cities: the need to bring people of different
ethnic groups and incomes together; the need to make inviting and safe public spaces;
the need to reinvigorate low- and moderate-income neighborhoods and to support
small-scale economic activity; the need to provide fresh, high-quality produce to
inner-city residents; and the need to protect open space and preserve farming around
cities.
The future growth of the Philippine economy depends, to a large extent, on the
development of entrepreneurs with the ability to develop creative homegrown
products. Night markets are one of the most exciting trends in Philippines food

system and act as an alternative for small-time traders to sell their goods in the
evenings.
Night markets are not new to our culture. During the Spanish period, our
plazas have dual functions paseo or promenading area by the day, and adelance or
marketplace during the night. Night markets were prohibited, however, following the
outbreak of the revolution.
Markets in the Philippines often showcase a combination local produce
products and goods from their neighboring countries like China. In some markets
nooks, local artisans sell their works for a cheap price. It is the place as well to have a
glimpse of how locals live their everyday lives. Night markets have been introduced
in the Philippines like in Metro Manila, Cebu and Davao. These night markets have
grown every year.
In Capiz, an established night market has not been introduced yet. Street
vendors were selling their products via portable stalls as much as the vendors in
nearby municipalities.
Pontevedra, a bustling municipality just adjacent to Roxas City has, for time
immemorial, have always been a trading post. Because of the growing population and
industryin the municipality, there is an increase of consumers and there are many
people engaging in various businessesand are looking for a better space for their
goods and services. Street vendors were scattered along the highway which in turn
cause traffic.
The project would be beneficial to the municipality of Pontevedra. It would
offer people who engage in business without a store/ shop area at the public market to

placeand to keep their goods and materials for their services. It would also serve as an
additional income for the municipality.

Objectives

This study will determine the feasibility of a Food Night Market in the
Municipality of Pontevedra. Specifically, it aimed to answer the following questions:

1. Whatmanagement systems are appropriate for the project?

2. What are the technical aspects of this project?
3. What marketing strategies are appropriate for the project?
4. What are the financial aspects of the project?
5. What are the socio-economic impacts of the proposed project?

Description of the project

The proposed project is a night market food open-air stalls open for rent. The
project has 18 stalls intended to serve street food and native Filipino foods. The
market operate at night and are generally dedicated to more leisurely strolling and
eating than more businesslike day markets.

Project Proponent
The Local Government Unit of Pontevedra is the project proponent and will be
one of its Income Generating projects.
Proposed name of the project

Pontevedra Food Night Market is the proposed name of the project.

Type of Business Organization

The Pontevedra Food Night Market will be owned and operated by the Local
Government of Pontevedra, Capiz.

Location of the project

The proposed project will be located near the Town Hall of Pontevedra,
parallel to Panay River and the town plaza.The town of Pontevedra belongs to the
third class municipality in the province of Capiz. It is bounded on the north by the
town of Panay and the Jintotolo Channel, on the east by the town of President Roxas,
on the south by Maayon, and on the west by Panitan. It has a total land area of 133
square kilometers and is politically subdivided into 26 barangays (6 coastal and 20
upland). The town is 10 kilometers away from the municipality of Panay, the home of
the biggest bell in Asia.

Chapter II
MANAGEMENT FEASIBILITY

Management is one of the important aspects in establishing a business. It is the

performance of conceiving and achieving desired results by means of group effort
consisting of utilizing human talents and resources. Therefore, management is
considered as the force that runs an enterprise and is responsible for its success or
failure.
The overall implementation plan is discussed in the organization and
management study. This aspect includes a study of the officers and key personnel,
basic consideration in forming the organization, form of ownership, organizational
chart and project schedule.
The objective of the management aspect of a feasibility study is to determine the
option effectiveness of the organizational setup and the qualifications of the
individuals who will make up the organization. This aspect will determine the
successful realization of the project study.
Personnel
The proposed night markets appear deceptively simple to open and operate yet
they require carefulplanning and effective management if they are to achieve
operational success quickly andbecome centers of community life and sustainable
local growth and development in the long run.
Careful consideration needs to be taken in regards to the overall governance
structure,processes and management. Therecommended governance approach would
include a diverse yet relatively equal representation of thecommunity.
The proposed night market will be owned by the local government of
Pontevedraandoverseen by the existing market administration of Pontevedra Public

Market. The market administratorwill be responsible for overall management of the

facilities and its operations. At no time should thisposition or the responsibilities
associated thereto be assigned to a volunteer position.
The maintenance will be filled by the existing maintenance personnel of the
nearby public market. They will maintain the surroundings of the proposed project on
a daily basis. The cleanliness of the respective stalls is given to the stall owners.

The organization structure of the proposed project

Based on the organizational structure, the following are the personnels

function and responsibilities.
Position
Municipal
Mayor
Market
Administrator
Maintenance
Leaser

Hours of Operations

Job Description
Will approve the budget for the
project and will be the overall incharge
Will administer the whole operation
of the project and will supervise the
maintenance of the area
Will maintain the cleanliness and
provide technical assistance to the
leaser.
They are the one who sell goods in
the proposed night market.

The proposed night market will open 7 days per week. The market hour will
start at 4 pm and end at 11 pm. The market also management recommend that the
market be open the same time each day for convenience and consistency. Six days per
week is also an option, especially in the first few years, as this helps reduce labour
costs for the vendors and provides time to do repairs. Most stalls will also be owner
operated so it allows them some time off.
Night Market Policies
General Policies
1. The night market vendors will sell only foods and beverage.
2. It is not permitted to buy from someone else in the market and re-sell at the market.
3. Family members or strategic partners over the age of 18, who participate in the
production of the merchandise sold and have full membership, may then operate the
booth alone or in the company of any other family member or partner, subject to
seniority regulations.
a) The Night Market adopts the position that a partnership must be
recognizable as such under the law.
b) Partnerships must be willing to provide a copy of their legal partnership
agreement to its legal counsel upon request. If no formal agreement exists,
they must provide such other documentation as may be requested to prove
their partnership status.
c) The market management has the right to refuse membership to any person
whose status (employee, partner, and owner) cannot be proven to the
satisfaction of the management.
d) Any person aggrieved by the decision of the management has the right to
appeal at the next general membership meeting, provided that written notice of

appeal is given to the management no later than one month prior to the
membership meeting.
4. Stall space for Non-Profit Organizations may be made available. Groups applying
to vend or promote their cause shall not vend products or fund raiser items without
prior approval of the Market Administrator.
5. The maximum number of stalls per owner shall be one (1).
a) Rule 5 shall not apply when the allotment of more than one (1) stall does
not preclude another vendor from obtaining a stall.
b) For the purpose of rules 5 and 5a, a business shall be any member or
combination of members which, in the estimation of the management, conduct
their operations in such a manner that they appear to be a partnership, cooperative, or other such arrangements which are not at arms length.
7. Members may register designated helpers to assist them in the booth.
8. Vendors are responsible for keeping their stalls clean and neat on a regular. There
may be different types of sanitation needed for different vendors, depending on what
they are selling.
9. Vendors are discouraged from making serious modifications to their stands. Minor
modifications must be approved by the market management.
10. Members must pay the stall rent and membership assessment as set by the market
management.
11. Stall holders must conform to Provincial and Municipal Public Health Regulations
and Standards of cleanliness.
12. Due to the scarcity of space, Unloading time is one hour before the selling time.
If you are later than 20 minutes before the opening time, vehicles must stay at the
entrance for unloading.

13. All members with vehicles are expected to stay until closing time. If you sell out,
be sure to post Sorry Sold Out sign on your table, and return at the end of the
market to remove your table and clean up your stall.
14. If a member has been assigned a stall and does not intend to use it or decided to
stop its business, the Market Administrator MUST be notified at least one week in
advance, so that someone on the waiting list may use it. Failure to notify the Market
Administrator of absence will result in the member being invoiced for payment of
days stall fees.
15. No vendor may sell before the advertised opening time. This is for the purpose of
fairness.Persons found selling before opening time will be fined Php 1,000.00 and the
fine recorded on their file. A second offence will result in a fine of Php 2,000.00. A
third offence could result in the permit to sell being revoked at the discretion of the
market management.
16. Each vendor must contain his or her table and merchandise within the allotted stall
space.
17. Permits must be current and displayed prominently on the stall.
18. Product prices may be displayed only when the item listed is on the table and
offered for sale. When the product is sold out the advertised price must be removed or
completely obscured(not crossed out).
19. All vendors are to supply their own stall and set up for marketing.
20. INSURANCE: Vendors are responsible for the placement, maintenance and cost
of insurance covering all risk (liability, fire, theft, and damage) related to the Vendors
participation in the Night Market, and during the entire period the Vendors goods
remain in the Night Market.
21. Packaging must conform to the Dept. of Health regulations.

22. Each member is responsible for obtaining and following all public health and
safety requirements
23. The vendor shall not engage in any unethical business practice. The Vendor shall
not engage in any activity which would, in the opinion of the management, tend to
lower the character of the Market.
24. There is No Smoking at any vending outlet.
25. Busking, soliciting and outside advertising requires permission from the Market
Administration.
26. Vendors shall adhere to all codes pertaining to liquor, drugs, health, fire, and
municipal ordinances.
27. Hot food and coffee pots and anything deemed hazardous must be on the back of
the table on a firm base and away from the public.
28. All complaints or concerns must be made in Writing, to be presented to the Public
Market Administrator for consideration and response.
29. The Night Market Management has the right to inspect the premises of any
member if concerns arise regarding the legitimacy of the operation as required by
membership, and for any Public Health and Safety concerns.
30. Current vendors must submit a new product application form as required and keep
other information current.

Chapter III

MARKETING FEASIBILITY

Marketing is a system of business activities designed to plan, price, promote

and distribute want-satisfying goods and services to present and potential customers.
It is considered as the lifeblood of every business transactions because it is a
strategic way on how to cope up to the needs and wants of the costumers, finding
opportunities regarding it, introduce and market the product, achieve customers
loyalty and patronage.
This aspect includes the following topics: demands, supply, demand and
supply gap analysis, and marketing programs. Marketing aspect serves as the basis of
the financial section through the projected demand. There can be no discussion of
profitability or of the other aspects of the study; if in the first place, there is no
demand or market.

Every business is practically aspiring for productivity but

practically in order to last in the business world the first thing to take into
consideration is the target market. The costumers will be the key factor to achieve the
objectives of the organization. Finding opportunities and spotting the right market are
both important in establishing a business. Knowing customers demand and supplying
them right products at reasonable prices.
Market Description

With every type of food imaginable you can pick from typical Filipino dishes
to burgers, grilled sausages, fish and chips, gelato and more. The fresh fruit drinks are
great that everyone can attest to that.Selling these foods come in a way the traditional
Filipino vendors accustomed with, a portable stall right next to the streets.
Currently in Pontevedra, only the street vendors feature the selling of local and
street foods during night in a portable carts and stalls. For the majority of other stalls

in Pontevedra Public Market, this idea is not being pursued even though this approach
to sourcing street and finger food and advertising new choices appears to be growing
ever more popular in many parts of the province and the world. That being said, both
community interest in sourcing local and street food and the increasing number of
population suggest that interest in Pontevedra does not differ substantially from that
of other communities. The creation of the proposed project within a public market
could provide a special, easily understood and readily accessed point of introduction
to this practice.
The proposed project provide economic opportunity to a range of operators
and entrepreneurs which is the target market of the project; properly structured they
provide communities with an opportunity to revitalize, renew and refresh
neighborhoods and downtown enclaves; they can be an especially important gathering
place for social interaction amongst a range of demographic and socio-economic
cohorts; they provide public space; they link the community to its agricultural roots
and environs; and they are pathways for good health and nutrition to name but a few
of the more obvious benefits that accrue with the development of a public market.
It is envisaged at the outset that an integral part of the proposed project will be
a small entrepreneurs encompassing eighteen quality vendors. These vendors would
feature locally produced food products; value-added items such as baked goods,
jellies, sauces and preserves; as well as various arts street foods and condiments.
Demand
Starting from a common traditional food retailing system of small shops, wet
markets, and hawkers (as was similarly common in the US, Western Europe, and
Japan), a night market took off in the early to mid-1990s in developing countries in

Asia like Singapore, Malaysia and Taiwan (Reardon et al. 2003; Reardon and Timmer
2007). The transformation of food retail in developing countries is an important
development research topic in part because it treats change in roughly a third of the
economy as value chain research estimates that about a third of the value-added and
costs occur in the retail segment of the food supply chain, a third in the processing
and wholesale, and a third in the farm segment. This implies that the latter is
important to food costs and food security for the large share of the population that is
urban (nearly half in the Philippines) and the many rural households that are net
buyers (Balisacan 2000).
Despite the growing importance of the modern food retail sector in the
Philippines for the overall food economy that caters variety of foods, there has been
only few night markets available in the Philippines. Majority of these markets are
concentrated in Metro Manila while other major cities like Cebu and Davao have at
least one major night market.In fact, Manila is ranked ninth among the cities in Asia
in terms of street foods and night market hub according to the CNN Travel. Public
spaces uplift the spirit regardless of age, social standing or location, and are vital to
the well-being of citizens in a livable community.
In Pontevedra, vendors selling snacks and condiments at night were crowding
the streets with their portable stalls with no regulations to keep the foods safe. Due to
the diversified social status of the people and an increasing engagement in night
activities, streets vendors would extend their selling hour till midnight. With current
population of 43, 525 and population growth of 1.30 %, the municipality drastically
change along with the need of a new public space for new entrepreneurs.

Supply

Local authorities in the Philippines had begun to realize the night markets
roles in encouraging the youth population greater involvement in business. They
could be considered as business incubators for aspiring entrepreneurs since they
would need to put in a very small investment to start the business, the risk of failure
was minimal, and there was the opportunity to earn a hefty income. The night markets
provided the opportunity for those individuals to develop self-confidence, to enhance
their business and marketing skills, and to build rapport with suppliers and consumers.
Many night markets have been established in key cities in the Philippines.
The Midnight Mercato in Global City, Manila is open every Friday and Saturday
night from 10pm to 3am. With every type of food imaginable you can pick from
typical Filipino dishes to burgers, grilled sausages, fish and chips, gelato and more.
This is one of many Night Markets that occur on different days of the week in Manila,
some stay open until 5am or 6am in the morning. They all have one thing in common
and that is great food.
This particular Night Market in Global City has a large outside eating area
with tables and chairs and also another large area situated in a big festival style tent. I
think that is great because you can walk around and pick up something, have a place
to sit and eat and then loosen your belt for round two.
This Market also offers a daytime venue for those that dont want to get out at night.
Called The MercatoCentrale it is open every Saturday and Sunday from 7am to 2pm.
And there are other daytime markets open usually on the weekends in other parts of
Manila.

The countrys original night market at the Tutuban Center in Divisoria,

Manila has been an avenue of opportunities for business-minded Filipinos who wish
to provide enough for their families.
The night market has been a glowing spot for many of Manilas street sellers
and buyers and it continues to shine brighter as Christmas Day draws near.
Although it has been, and continues to be, imitated by some cities in the metropolis,
the Tutuban Center Night Market remains to be a vibrant choice. And for some who
prefer to shop after office hours or even if the malls are already closed, people with
tight schedules would certainly find the Tutuban Center Night Market a favorable
option,

especially

during

the

Christmas

season.

This exciting shopping alternative carries a varied array of goodies that can
meet any checklist, from toys, novelty items, fun and fashionable accessories to home
furnishings, gadgets and gizmos and apparel.
Another prominent nigh market in Metro Manila is the Manila Nigh Market
which is a project of the local government of Manila. As soon as the sun set, the
crowd of shoppers and vendors on Recto Avenue corner Juan Luna street in Manila
were already in pandemonium. It was the night of the Manila Night Market, a solution
created by Manila Mayor Joseph Estrada to decongest Divisoria and to continue
giving opportunities to vendors who were displaced in the process of clearing out the
sidewalks and streets during daytime. The night market is open every day from 6 p.m.
to 6 a.m.

When the mayor left, more goods started to come in, with trucks making their
way on one end of Recto Avenue, where the drop-off point of the fruits and vegetables
has been designated. Majority of the vendors at the night market were selling fruits
and vegetables from Baguio. There were also vendors offering balut and other street
foods. Only a few were selling dry goods such as kitchen wares and clothes.
Airconditioned malls like 168 Mall and New Divisoria Mall offer convenience
but nothing compares to checking out Divisorias sidewalk vendors for a wide range
of items. Juan Luna, for instance, has stalls selling everything from party favors, toys,
t-shirts, underwear, to mobile gadget accessories.
In Visayas, the City of Cebu has its own night market to offer. Cebu is a bite
sized Manilla and this is just another chaotic, smelly market, not unlike Divisoria in
Manilla but a bit smaller. The Night Market is a project of Cebu City Mayor Michael
L. Rama which he started way back in 2007 during his stint as the City Vice Mayor. It
aims to bring back the old glory of the oldest street in the Philippines - the Colon
Street which was used to be the center of trade, commerce, and industry decades ago.
At least 200 vendors and traders confirmed to partake in the activity that will offer
various items such as souvenir items, school supplies, kitchen utensils, household
needs, garments, toys, foot-wears, other dry goods, fruits, and street and finger foods
and other delicacies, among several others.
Down south, Roxas Avenue night market is the busiest night market in Davao
City dubbed as "TianggesaKatawhan". There are rows of stalls of very low
priced second hand RTW's or "ukay-ukay" and a long array of barbecue stalls. The
vendors

will

open

their

stalls

starting

at

p.m.

Recently, the vendors attended a seminar on proper food handling, especially on food

safety to keep their food clean and prevent food poisoning. The vendors are also
required to wear hairnets to make them neat and clean. The city government of Davao
also reminded all vendors to maintain the cleanliness of their surroundings and avoid
throwing of garbage in the canal.
The most interesting part when dining in these barbeque stalls is their ordering
and paying procedure. When you order and ready to pay, the vendors will ask you the
kind of orders you made and the quantity that corresponds it, then they will relay your
total bill.
The City Government of Davao's plan to replicate this on-going night market
to other potential areas in the city is still under study, an official said.Because of the
night market along Roxas Ave. contributed a total revenue, amounting to P3,585,931
from January to September this year, some 46.8 percent increase as compared to last
year's collection of P2,442,867 million it is a signal for the local government to
discover new potential places for such market.
Iloilo City, a city 114 km from Roxas City, also have a night market along
Delgado-Iznart Streets going southeast to Plazoleta Gay but these vendors mostly
have portable stalls. During the time of then Mayor Jerry Treas, there was an attempt
to revive the night market through Regulation Ordinance No. 2005-178, Series of
2005, otherwise known as an Ordinance Providing for a Night Market in the City of
Iloilo. The ordinance called for the conversion of MuelleLoney Street, starting from
Quirino Bridge to the corner of Yulo Street, into a night market with business hours
between 7 to 11 in the evening. It was a flop though, and Treas scrapped the idea.
In Roxas City, Burgos St. offers a night market experience but only on a short
period of time. Vendors are more likely to end their selling around 8 to 9 pm. This

market though is not in a stall but rather vendors placed their products on sidewalks
and offers mostly fresh seafood and vegetable. Few vendors offer street foods and
condiments but count only the minority of the vendors.
The Municipality of Pontevedra has no area intended for night market. Street
food vendors are scattered along Rizal St. on their portable carts.
Price
The proposed projects price each stall will be Php 1,000.00. It is payable
every month. The vendors are also subject to a Php 5,000.00 marketing fees annually
to help the community to be aware of their business.

Services
The proposed project will offer public spaces for small entrepreneurs in the
municipality to provide them business opportunities. Such a facility will provide new
entrepreneurs the opportunity of starting and/or expanding specialty food and catering
businesses without the excessive cost of building their own commercial kitchens.
Ultimately as well, the facility will create new tourism opportunities and create goods
that highlight the uniqueness of the municipalitys agricultural products, local foods
and creative people.
Demand-Supply Analysis
The local government of Pontevedra have wield an effort to maximize the use
of the public market and give new entrepreneurs chance to have their business prosper
by building but new stalls inside the public market. But the stalls were occupied by

majority of RTW vendors. The same project with the proposed project has been
initiated but these stalls were also used by vendors who sell fresh seafoods. The
municipality have no established night market. Individuals who wish to grab snacks
and foods at night compensate themselves with foods sold by scattered street vendors,
burger chains and bakeries.
General Marketing Practice
Clearly, a properly focused market launch will be critical to the establishment
of a firm foundation from which subsequent operational successes will need to be
premised. In this regard it is recommended that the proposed night market pursue a
market positioning as follows:
Keep the public informed.
Ensure operations and strategies are based on sound business practices.
Market needs to be of substance and uniqueness in order to be a retail
destination.
Be demand focused not supply focused.
Plan for the future.
Get the strategic partners involved.
Make decisions based on good records.
Evaluate continuously.
Create a high-quality and diverse product mix.
Have adequate capitalization.
Proposed Marketing Program
Since the proposed projects offers new market with enhanced and complete
product offering, the project cannot rely on brand strength or market reputation to

encourage entrepreneur adoption/engagement and must therefore develop its own

market adoption strategy.The small scales entrepreneur will need to know the new
public places. The local government will disseminate flyers and posters to herald the
new public places. Since the Municipality of Pontevedra have an existing web page,
the proposed project will be posted on the page to make public awareness as well as
tourism information platform. Ultimately, business will not prosper without
consumers. The proposed project will also initiate marketing programs for the
consumers to be utilized by the entrepreneurs. Certainly a random approach to
consumer engagement will not work. There is significant need for a comprehensive
marketing strategy. The overall marketing strategy as recommended for the night
market will need to be low cost due to minimal financial resources that the proposed
project generates. Once underway, in order to maintain a high level of consumer
interest and generate ongoing visitations by locals and visitors the proposed project
will consider the context of introducing or focusing on a mix of selected themes over
the expected weeks of high season visitation.
The proposed project will also establish a visitor information center to develop
tourism in the municipality. Because visitors centers attract and encourage the
travelling public to stop, many communities are now building them in partnership
with local attractions, tourism businesses and other organizations. These new centers
create symbiotic, mutually beneficial relationships with other businesses in the area
that not only draw locals, but also visitors who come for information on things to see
and do, as well as where to stay and directions to places of interest. As mentioned
previously, the proposed project will support and promote the sale of local products at
its year round location.

Tenants will also encouraged to initiate internal or in-store promotions in

retaining visitors. Once the customer enters the night market the following common
internal promotions or techniques/practices and/or initiatives either individually or
collectively will be utilized in order to encourage/facilitate a longer stay resulting in
increased sales, most notably: effectively designed store layout; attractive displays;
eye-catching internal displays; clear signage; promotional signs; location signs;
understandable institute signs; and exciting atmosphere.

Estimated Marketing Cost

The Estimated marketing campaign of the project is Php55,000. The
marketing cost is breakdown as follows:
Marketing Activities

Amount (Php)

Poster and Flyers

15,000

Information Center

20,000

Signage, promotional signs and

colorful lights

20,000

Total

55,000

Revenue
The proposed project will have its hand full in five years. In the first of
operation, the proposed project will generate an income of Php 105,276.00 while on
the year 5 it will have an income of Php 137,748.

Net Income

Year 1

Year 2

Year 3

Year 4

Year 5

105,276

116,276

125,076

132,116

137,748

System and Forms Design

The interested leasers will fill-up a form. The policy and agreement set by the
management can be found at the back of the registration form.

They will be required to fill-up a bio-data which contains the leasers personal
information for record and security purposes. Also they will be required to submit the
description of their product, ingredients and production process to ensure safety of the
consumers.

Chapter IV
TECHNICAL FEASIBILITY
After having determined the market size and area, product demand and
growth, the potential and technical feasibility of the project may be analyzed. This
stage deals with the allocation of resources that will be needed in order to satisfy the
market. The technical soundness analysis will be considered complete if all pertinent
technical aspect of the project have been taken into account in the analysis and if the
planned construction or procurement conforms to accepted standards and practices.
The estimated cost of the project should be as low as any other reasonably available
alternate which would produce the intended results. The objective of this portion of
the feasibility study is to determine to what extent the project meets the technical
soundness criteria.
Product/Service Description

This project proposes to construct an eighteen (18) unit food stalls for rent at
the proposed Food Night Market area in the Municipality of Pontevedra.
The stalls will be constructed from a variety of materials but usually consists
of either wood or metal and cement or a combination. Each unit will have a bathroom
and a kitchen. The total area per stall is 60sq. meters with roll-up doors and individual
water and electric submeters.
The proposed structure and function of the project is compatible with smaller,
singular and unsettled street vendors. This multidimensional enterprise in
complementing and building on the service and product offerings of other enterprises
and activities within the public market, will operate largely as a casual, by-the-road
food catering to a broad range of customers including local residents and tourists;

young adults and young families; seniors and local businessmen/women. It is

proposed that the operation itself will offer on-site and takeout food (including baked
goods and coffee) service.

Delivery of the Service

The proposed project will be manned and supervised by the Market

Administrator of the Municipality of Pontevedra alongside with his maintenance team
to ensure that the prospective clienteles are consistently provided with safety,
cleanliness and comfort and at the same time they are related with respect, kindness,
and concern for their needs. The proposed night market will open from 4 pm till 10
pm and are accessible to all.
Emphasis on on-site production
To further enliven the market, all vendors should be encouraged to make their
production tasks visible to the public so they can actually see them making their food.
This might include coffee roasting, meat slicing, chickens roasting on spits, food
cutting and chopping, kneading dough, food cooking and so on.
Project Site
The choice of location for the proposed public market is of critical importance
for a number of reasons, not the least of which includes operational viability and
downtown revitalization. It is located near the Town Hall parallel to the municipal
plaza and Panay River as shown in the figure.

Project Site
Location Size
The location size of the project will accommodate 18 stalls. The overall length
of the project is 44.10 meters with 3 meters width. Every stall is 2.5 x 3 meter with
height from base to roof of 3.2 meters. The detailed floor plan and lay outs are
attached in the appendices.

Technology Assistance
Pontevedra Food Night Market will have its technology assistance such as
telephone, internet connection, computer, television to make the operation of the night
market smooth. CCTV cameras will be installed to ensure optimum security.
A general check-up of the facilities shall be done at least three months to ensure that
facilities are well-kept and functioning well so that it can deliver quality and
competitive service. The Municipal Engineers office will inspect the area annually.

ManpowerRequirements

Utilization of food stalls will be the Pontevedra Food Night Markets main source of
Income. It will be open to businessmen who are into production of fast foods, fresh
fruits, beverages etc.
First tenants should be unique and interesting as possible. Second, food and
restaurants are generally a major and important element in the tenant mix. Third,
turnover in a proposed project should be regarded as healthy and safe.

Wastes and disposal management

Food waste management and recovery is most commonly defined as that
series of activities where discarded food materials are collected, sorted, processed and
converted into other materials and used in the production of new products (Mills
2007). The majority of food wasted is by consumers and food service establishments.
Food losses are the result of over preparation, food preparation waste, table scraps,
cooking losses, spoiled leftovers, and package failure and spillage. Food service
businesses throw food away because of over preparation, expanded menu choices,
plate waste, and fluctuations in food sales beyond the control of service operators.The
waste will be collected everyday by the projects maintenance team. Every stall will
also have bio and non degradable waste cans to segregation.
Long Term Plans
Long term plans of the project include the construction of the additional stalls.
The additional stalls will focus on selling traditional Filipino dishes. The current stalls
only offers variety of quick foods but the management will deepen their menu by
inserting traditional foods of Capiz and other provinces.

Other options will be constructing stalls that introduce Asian cuisines. The
Philippines is adopting the ASEAN culture through integration so the proponents will
have the initiative to venture on their foods

System forms and Design

In case any equipment needs to be repaired, the incident should be reported to

the Market Administrator . The latter will take actions by preparing a job order
request subject to the approval of the Project Head. Once the request is approved, any
cost spent for the repair will be deducted from the repairs and maintenance budget of
the proposed budget. There is an existing job order process which the proposed
project will follow.

In case purchasing of materials is necessary, a request should be filled first and

it will be subject for canvass. The proposed project will observe the proper
procedures. Any transactions without the approval from the concerned personnel
isinvalid. Same as job order form, there is an existing form used already by the
municipal hall.

In case there is any damage in the equipment, it should undergo process of

investigation. If the damage was due to an accident, the local government will be
responsible for replacing a new one. If, however, there is direct or indirect damage in
the equipment, the responsible individual will be liable and subject for penalty.

Chapter V
FINANCIAL FEASBILITY
The financial aspect of the project feasibility study quantifies the results of
the marketing, technical, management, taxation and legal phase of the project study
and expresses in peso terms the possible outcome of operating the project.
Basically, project studies consist of the skillful coordination of the various
information on all the factors in the form of financial projections. It covers all the
factors that are pertinent to an intended venture having established the existence of a
sample market and the feasibility of the production facilities to supply this market,
the investigation should move on the study of finance cost.
Total Project Cost
The total cost of the project is Php780,000.00. The cost is allocated among
material cost, direct labor, contingency and security installation. The detailed program
of works is attached in the Appendix of this paper.
Material Cost
The start-up assets of the project included the stalls. The proposed
project will comprise 18 stalls with estimated cost each stall of Php34,138.32.
The materials for the stall are made up mostly of steel and galvanized
materials.
Direct Labor
The proposed project will need 15 men. It is composed of 1 foreman, 1
safety practitioner, 5 skilled worker and 8 unskilled workers. The proposed
project will be constructed within one month with a total of direct labor cost of
Php144,000.00

Security Installations
To catch intruders, burglars red handed and prevent any crimes; the
proposed project will install two CCTV cameras in the vicinity of the night
market. The management will purchase two Bullet Camera (Model : TED-NT48M80-I44) worth 2,500 each.
Financier
The project shall be financed by the Local Government of Pontevedra. It will
come from their annual Local Government Finances and Budgets. The project will be
one of the municipalitys sources of revenue as mandated by The Local Government
Code, Section 129 that each local government unit shall exercise its power to create
its own sources of revenue.
Major Assumption Used
The following are the assumptions used in the financial analysis:
1. The 18 stalls will be occupied on the first five years of operations.
2. There will be no competition for the next 10 years after the establishment
of the project.
3. The stall rate will remain fix up to ten years.
4. The marketing cost will decrease by 20% each year due to the awareness
of the community.
SWOT Analysis
Strengths
1. Well designed and regulated night market.

2. The project is strategically located in one of the busiest place in the

municipality.
3. The project is first among municipalities in Capiz.
4. Have optimum security for the cumminity..

Weaknesses
1. The proposed project is a new market and has not yet established a
formidable market for itself.
2. The proposed projects light materials will be susceptible to typhoons.
3. The proposed project location is a flood prone area.
Opportunities
1. Increasing number of population engaging in night time activities.
2. There is no existing night market in the municipality and nearby towns.
3. Changing attitudes of Filipinos towards night market and night leisure.
4. Night markets in other cities in the Philippines showed a positive outcome
for the project.
5. Increasing population in the municipality of Pontevedra.
Threats
1. Economic and Political stability of the country. This will include threats
along the streets which affects the attendance.
2. Communitys changing perception on healthy living.
3. Increased regulation can raise the costs.
4. Increase competition in the long run.

Projected Financial Statements (5years)

Projected Balance Sheet
Assuming full financing internally, the project shall grow from an asset
of Php885,276 from year 1 to an asset of Php1,396,492 on Year 5 as shown in
Appendix A. Stalls were depreciate annually over 20 years using a straight line
method.
Projected Income Statement
Appendix B shows the projected income statement of the project. The
project shows a constantly positive net income from year 1to year 5 of the
project. The proposed project will get its revenue from the rent of stalls and
the marketing fees imposed against the vendor for marketing purposes. Repair
and maintenance, marketing and promotions, and deprecations are the major
expense of the project.
Projected Cash Flows
Appendix C shows the projected cash flow of the project. By the end
of year five the project has an accumulated cash of Php935,622. The cash will
be sufficient to construct additional stalls for expansion.
Financial Ratios
The following financial ratios shall be used in the analysis of the proposed
project. Table of ratios are shown on Appendix D.
Return on Investment (ROI)
Return on Investment is aninsolent gauge of profitability. This
calculation serves as the base from which all informed investment decisions
are made and, although the calculation remains constant, there are unique

variables that different types of investment bring to the equation.To calculate

it, you simply take the gain of an investmentand divide it by the cost of the
investment. . In the proposed projects ratio, the calculated ROI is 0.13 or 13%
during the first year of operation. The ROI is projected to grow to 0.18 or 18%
in year 5.
Return on Total Assets
A ratio that measures a company's earnings before interest and taxes
(EBIT) against its total net assets. The ratio is considered an indicator of how
effectively a company is using its assets to generate earnings before
contractual obligations must be paid.The project has .12 ROA in the first year
while have .10 in the fifth year.
Gross Profit Ratio
The gross profit ratio shows the proportion of profits generated by the
sale of products or services, before selling and administrative expenses. It is
used to examine the ability of a business to create sellable products in a costeffective manner.The proposed project has a projected profit ratio .95or95 %
in its first 5 years of operations.
Net Profit Rate
The net profit percentage is the ratio of after-tax profits to net
sales. It reveals the remaining profit after all costs of production,
administration, and financing have been deducted from sales, and income
taxes recognized. The net profit rate is 48%% in year 1. The indicator
improved to 62% in year 5.

Financial Analysis
Payback Period
The length of time required to recover the cost of an investment. The
payback period of a given investment or project is an important determinant of
whether to undertake the position or project, as longer payback periods are
typically not desirable for investment positions.For the Pontevedra Night
Market, the payback period is 6.81 years.
Payback Period= Total investment cost/Average Annual Cash flow
Payback Period = Php780,000/Php114,567
= 6.81 years
Net Present Value (NPV)
Net present value is the present value of net cash inflows generated by
a project including salvage value, if any, less the initial investment on the
project.

NPV = - Present Value of the projected cash flow Total Investment

In the case of the proposed project, the NPV is:

NPV = Php 1,246,092 Php 780,000

NPV =

Php 466,091.60

Positive NPV indicates that the project is acceptable and viable.

Notes to Financial Statements

Material Cost
The cost estimate for the materials of the stalls is an aggressive
estimate bases on prices in the current market.
Liabilities
The project was presumed to have no liabilities. Since the project is
funded by the government and there is no major operating expense accounted
during operation.
Depreciation
The projected lifespan of the stalls is 20 years. Depreciation was
determined using the straight-line method. The total value of the stalls divided
by 20 years.
Stalls
There will be no major development within the five years. The value of
the stalls will remain the same in first five years of operation
Income Tax
The proposed project is exempted to income tax because the 1987
Constitutional Provisions exempts government entities from income tax.

Chapter VI
SOCIO ECONOMIC FEASIBILITY
The socio-economic impact of this study will clearly state its relevance to the
external aspect of the business. While not strictly the domain of night markets the
point to note is that the food industry today, not unlike many other economic sectors,
is typically based on large scale facilities, long transportation distances and the
absence of contact between producer and consumer. These conditions, while premised
on firm or industry specific economic rationale, bring with them increasing social and
environmental costs to communities and regions. The proposed night market; on the
other hand, bring with them an array of important and exciting economic, social and
environmental benefits.
The Owner
The Pontevedra Night Market program effort at helping small and medium
entrepreneurs maximize income opportunities by designating the downtown as a
business district transforming it into a bustling trading area at nights, where locals and
visitors eat and shop. It is also a program that opens the doors for the educational
opportunities and employment of marginalized groups to pursue their dreams and
maximize their potential.
The Community
The PontevedraNightMarket provide economic opportunity to a range of
operators and entrepreneurs; properly structured in providing community with an
opportunity to revitalize, renew and refresh neighborhoods and downtown enclaves;
they can be an especially important gathering place for social interaction amongst a
range of demographic and socio-economic cohorts; they provide public space; they

link the community to its agricultural roots and locality; and they are pathways for
good health and nutrition to name but a few of the more obvious benefits that accrue
with the development of a night market.
The Employees
The Pontevedra Night Market will provide job opportunities to many
individuals most especially to those people who have great passion in food
preparation. Every society wants all its qualified members to be gainfully employed.
When individuals are employed they are able to raise their children support them
through school, provide them with decent homes, acquire medical services whenever
needed and contribute to government income through the payment of income taxes.

The Local Government

One of the most obvious, but perhaps least understood, methods of enhancing
social integration in public spaces and encouraging upward mobility are night
markets. Aside from it introduce the Local Government of Pontevedrato a new means
of revenue generating project, it will help them address some of the more vexing
problems of our community: the need to bring people of different social groups and
incomes together; the need to make inviting and safe public spaces; the need to
reinvigorate low- and moderate-income neighborhoods and to support small-scale
economic activity; the need to provide fresh, high-quality produce to inner-city
residents; and the need to protect open space.
Other Beneficiaries
Tourism
The Pontevedra Night Market has its own potential to explore as a new
tourism attraction while the local foods are re-shaped as a tourism product.

Tourists generally prefer to spend more time and money on food than
accommodation and shopping, and this eventually brings tourism benefits to
the Municipality of Pontevedra.
For locals, night market is a suitable place to meet their friends and
family. For foreign tourists, it is the greatest introduction for them to
experience the culture and life of the municipality. It is also a distinct and
memorable activity to take back home.

Chapter VII
PROJECT IMPLEMENTATION AND TIMETABLE
Project Implementation Strategy
The following are the activities needed for the successful implementation of
the project.
1. Development of the feasibility study. This is necessary for the careful
planning of the project.
2. Market research. Demand must be establish in the local and in the
international setting for proper market identification.
3. Series of consultation with the stakeholders such as the community, the
vendor associations, and the local government unit.
4. Development of detailed engineering and design of the project. The
engineering details shall be consulted with the Municipal Planning and
Development Office.
5. Presentation and defend of the project to the Local Government of
Pontevedra.
6. Obtain financing from the Local Government of Pontevedra.
7. Commence construction of the proposed project.

Project Timetable
The proposed night market will consumed eight (8) months of extensive
preparation and research. The Municipal Planning and Development Office of the
Local Government of Pontevedra will spearhead the project in terms of preparations.
After a series of market research, consultation, presentation and preparation, the

construction will start on the ninth month. The detailed project timetable is presented
in the Appendix of this paper.

Chapter VIII
GENERAL CONCLUSION AND RECOMMENDATION
Conclusions
Based on the results of the study, the following conclusions were made:
1. The proposed night market is feasible in terms of management and personnel
aspects.
2. The proposed night market has enough demand in terms of public spaces.
3. The proposed night market is feasible from the vantage point of technical
analysis.
4. The proposed night market has a financial potential for the Local Government
of Pontevedra.
5. The project will be beneficial to the community, local government unit,
owners, member of the working class and tourism.
6. The project can be implemented using the right strategy.
Recommendations
Based on the conclusions, therefore it is recommended that the proposed
project Pontevedra Night Market be implemented as an income generating project
of the Local Government of Pontevedra.

Appendix A
Proposed Pontevedra Night Market 5 Year Financial Position Statement
Asset
Current Assets
Cash and Equivalents
Total Current Assets

Year 1

Year 2

Year 3

Year 4

Year 5

301,510

448,510

604,310

767,150

935,622

301,510

448,510

604,310

767,150

935,622

Non-Current Assets
Stalls
Total Non-current Assets
Less depreciation
Total Non-current Assets net of

614,489.70
614,489.70
30,724
583,765.21

614,489.7
0
614,489.7
0
61,448
553,041.2
1

614,489.70 614,489.70

614,489.70

614,489.70 614,489.70
92,172
122,896

614,489.70
153,620

522,317.21 491,593.21

460,869.21

Depreciation
885,276

1,001,552

1,126,628

1,258,744

1,396,492

Liabilities

Total Liabilities
Equity
Capital

780,000

780,000

780,000

780,000

780,000

105,276

221,552

346,628

478,744

616,492

885,276

1,001,552

1,126,628

1,258,744

1,396,492

Total Assets

Retained Earnings
Total Equity

Appendix B
Proposed Pontevedra Night Market 5 Year Projected Income Statement
Income from

Year 1

Year 2

Year 3

Year 4

Year 5

216,000

216,000

216,000

216,000

216,000

5,000

5,000

5,000

5,000

5,000

221,000

221,000

221,000

221,000

221,000

Repair and Maintenance

30,000

30,000

30,000

30,000

30,000

Total Operating Expense

10,000

10,000

10,000

10,000

10,000

Gross Income

211,000

211,000

211,000

211,000

211,000

55,000

44,000

35,200

28,160

22,528

30,724.49

30,724.49

30,724.49

30,724.49

30,724.49

857,24.49

747,24.49

659,24.49

58,884.49

53,252.49

Net Income

105,276

116,276

125,076

132,116

137,748

Retained Earnings

105,276

221,552

346,628

478,744

616,492

Monthly Dues
Marketing Fees
Total Income
Operating Expenses

Selling and other Administrative Expense

Marketing and Promotion Expense
Depreciation Expense
Total Selling and other Administrative Expense

Appendix C
Proposed Pontevedra Night Market 5 Year Cash FLow
Cash Inflow

Year 1

Year 2

Year 3

Year 4

Year 5

216,000

216,000

216,000

216,000

216,000

5,000

5,000

5,000

5,000

5,000

221,000

221,000

221,000

221,000

221,000

Maintenance Expense

30,000

30,000

30,000

30,000

30,000

Marketing and Promotion

55,000

44,000

35,200

28,160

22,528

Capital Outlay

Pre-Operating
780,000

Monthly Dues
Marketing Fees
Total Cash Inflow

780,000

Cash Outflow from Capital Expenditure

Construction of Stalls

614,489.70

Cash Outflow from Operation

Total Cash Outflow

614,490

85,000

74,000

65,200

58,160

52,528

Net Cash Flow

165,510

136,000

147,000

155,800

162,840

168,472

165,510

301,510

448,510

604,310

767,150

165,510

301,510

448,510

604,310

767,150

935,622

Add beginning Balance

Ending Cash Balance

Appendix D

Proposed Pontevedra Night Market Financial Ratios

Profitability Ratio
Year 1

Year 2

Year 3

Year 4

Year 5

105,276

116,276

125,076

132,116

137,748

780,000

780,000

780,000

780,000

780,000

0.13

0.15

0.16

0.17

0.18

105,276

116,276

125,076

132,116

137,748

885,276

1,001,552

1,126,628

1,258,744

1,396,492

0.12

0.12

0.11

0.10

0.10

211,000

211,000

211,000

211,000

211,000

221,000

221,000

221,000

221,000

221,000

0.95

0.95

0.95

0.95

0.95

Return on Investment (ROI)

Net Income
Total Investment Cost
ROI =
Return on Total Asset (ROA)
Net Income
Total Asset
ROA=

Gross Profit Ratio (GPR)

Gross Income
Total Revenue
GPR=

Net Profit Ratio (NPR)

Net Income
Total Revenue
NPR=

105,276

116,276

125,076

132,116

137,748

221,000

221,000

221,000

221,000

221,000

0.48

0.53

0.57

0.60

0.62

221,000

221,000

221,000

221,000

221,000

885,276

1,001,552

1,126,628

1,258,744

1,396,492

0.25

0.22

0.20

0.18

0.16

Efficiency Ratio
Asset Turnover
Total Sales
Total Assets
Asset Turnover=

Appendix E

The Proposed Pontevedra Night Market Floor PlanAppendix F

The Proposed Pontevedra Night Market Floor Plan (per stall)

Appendix G
The Proposed Pontevedra Night Market Roof Framing Plan

Appendix H
The Proposed Pontevedra Night Market Cross Section Lay out

Proposed Project Timetable

Appendix H
The Proposed Pontevedra Night Market Project Timetable
RESOURCES

TIME FRAME

PERSONS INVOLVED

BUDGET

Municipal Planning and

Development Office

P 20,000.00

Market research

Municipal Planning and

Development Office

P 10,000.00

Consultation with the

stakeholders

Municipal Planning and

Development Office

P 10,000.00

Municipal Engineering Office

P 10,000.00

ACTIVITIES
J

Development of the
feasibility study

Development of detailed
engineering and design of
the project.
Presentation and defend of
the project to the Local
Government
of
Pontevedra.

Municipal Planning and

Development Office

P 5,000.00

Obtain financing

Municipal Planning and

Development Office

Commence construction of
the proposed project.

Municipal Planning and

Development Office, and
Engineering Office

P 780,000.00