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DEPARTMENT OF INDUSTRIAL ENGINEERING


PROJECT FEASIBILITY STUDY
AY 2018-2019

TITLE PAGE

A Project Feasibility Study on Nú Coco,

A Concentrated Coconut Water Beverage

A Project Feasibility Study submitted to the

Industrial Engineering Department, Faculty of Engineering of the

University of Santo Tomas

BANDONG, Marianne Faye J.

CAGUING, Ezekiela S.

DELA PAZ, Francine Marie T.

MONCADA, Maria Alona M.

December 2018
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Project Feasibility Study 1 Approval Sheet

This project feasibility entitled:

A Project Feasibility Study on Nú Coco,


A Concentrated Coconut Water Beverage

Prepared and Presented by:

BANDONG, Marianne Faye J.


CAGUING, Ezekiela S.
DELA PAZ, Francine Marie T.
MONCADA, Maria Alona M.

Has been Approved and Accepted as


Partial Fulfillment
of the Requirements for the
Degree on Bachelor of Science in Industrial
Engineering

Panel Members

________________________________ ________________________________
Mr. Carlo Calicdan Ms. Mika Calixterio
Head of Brand Marketing and
Communications
BPI Philam

__________________________________
ENGR. Charmina Lou C. Bautista
Adviser

__________________________________
ENGR. ANGELO O. VALTE
Chair, Industrial Engineering Department

_________________________________
PROF. PHILIPINA A. MARCELO, PH.D.
Dean, Faculty of Engineering
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WARNING

No part of this project feasibility study may be reproduced or


transmitted in any means, electronic or mechanical, including
photocopying, recording or by any information storage and retrieval
system without permission from the authors

All Rights Reserved.


Copyright 2018

The Authors

BANDONG, Marianne Faye J.

CAGUING, Ezekiela S.

DELA PAZ, Francine Marie T.

MONCADA, Maria Alona M.


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ACKNOWLEDGEMENT

This undergraduate research would never have been possible if not for the

kind help and continuous support of many individuals. We would like to extend

our sincerest gratitude by acknowledging their contributions.

We are eternally grateful to Engr. Charmina Lou C. Bautista, our Project

Feasibility Study (PFS) Adviser, to Engr. Mark Emile Punzalan, and to Prof.

Angelo O. Valte, our PFS Lecturer, for all the wisdom, knowledge, guidance, and

enlightenment they imparted for the enrichment of this study.

To our panelists, for their time and for imparting helpful suggestions and

ideas for the improvement of our research.

We also would like to express our deepest thanks to our family, friends,

and loved ones, who were always there to encourage, understand, and support

us in pursuing this study which truly helped us with its completion.

Lastly, and with most glory, we want to offer this endeavor to our God

Almighty for bestowing us the strength, will, health, and peace of mind to finish

this study successfully.


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Table of Contents
TITLE PAGE ....................................................................................................................... i
CHAPTER 1: INTRODUCTION ....................................................................................... 1
1.1 Executive Summary ......................................................................................................1
1.1.1 Rationale .......................................................................................................................1
1.1.2 Name of the Firm ..........................................................................................................1
1.1.3 Brief Description of the Project ....................................................................................2
1.2 Introduction: Project Background and History .............................................................2
1.2.1 Project Proponents ........................................................................................................2
1.2.2 Type of Business Organization .....................................................................................3
1.2.3 Location of the Business ...............................................................................................3
1.3 Industry Analysis ..........................................................................................................4
1.3.1 Top Players in the Industry ...........................................................................................4
1.3.2 Industry Growth for the Past Ten Years .......................................................................4
1.3.3 Industry Category Data .................................................................................................4
1.3.4 Societal-Environmental Analysis..................................................................................5
1.3.5 SWOT Analysis ............................................................................................................8
1.3.6 Michael Porter’s Five Forces of Competition Model ...................................................9
1.4 Problem Statement ......................................................................................................12
1.5 Objectives of the Study ...............................................................................................12
1.5.1 General Objectives ......................................................................................................12
1.5.2 Specific Objectives ...................................................................................................12
1.6 Significance of the Study ............................................................................................13
1.6.1 Scope & Limitations ..............................................................................................14
1.7 Research Methodology ...............................................................................................15
1.8 Review of Related Literature ......................................................................................16
1.8.1 Philippines’ Coconut Water Industry.........................................................................16
1.8.2 Coconut water nutritional content ............................................................................17
1.8.3 Coconut Water Preservation ......................................................................................17
1.8.4 Packaging .....................................................................................................................18
1.8.5 Transportation ..............................................................................................................18
CHAPTER 2: MARKET STUDY .................................................................................... 20
2.1 Product Description ....................................................................................................20
2.1.1 Name of Product .........................................................................................................20
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2.1.2 Properties of the Product .............................................................................................20


2.1.4 Uses of the Product .....................................................................................................22
2.1.5 Geographical Areas of Distribution ............................................................................22
2.2 Demand Analysis – Survey Results Analyses ...............................................................22
2.2.1 Research Design..........................................................................................................22
2.3 Demand .......................................................................................................................42
2.3.1 Market Segmentation ..................................................................................................42
2.3.2 Target Demand............................................................................................................43
2.4 Supply Analysis – Research........................................................................................48
2.4.1 Present Supply ............................................................................................................48
2.4.2 Projected Supply .........................................................................................................49
2.5 Demand Supply Analysis ...............................................................................................51
2.6 PRICE STUDY AND STRATEGIES ............................................................................53
2.6.1. Competitor’s Price ......................................................................................................53
2.6.2. Customer/Survey Based ..............................................................................................54
2.6.3. Cost Base (Raw Ingredients and Materials)................................................................55
2.6.4. Other Pricing Factors of Nú Coco ..............................................................................56
2.7 MARKETING PROGRAMS AND STRATEGIES .......................................................57
2.7.1 Target Market...............................................................................................................57
2.7.2 Product-mix Strategies ................................................................................................57
2.7.3 Branding & Packaging ................................................................................................58
2.7.4 Channels of Distribution .............................................................................................60
2.7.5.1 Marketing & Sales Force .....................................................................................61
2.7.5.2 Nu Coco Life Cycle ..................................................................................................64
2.7.6 Advertising & Promos ................................................................................................66
2.7.7 Marketing Research & Development Program ............................................................72
2.7.8 Marketing Forms ..........................................................................................................76
2.8 TOTAL MARKETING COSTS ..................................................................................79
2.9 GANTT CHART OF MARKETING ACTIVITIES ......................................................80
CHAPTER 3: TECHNICAL STUDY ............................................................................... 81
3.1 Product Properties .......................................................................................................81
3.2 Product Design ............................................................................................................81
3.2.1 Perspective Drawing ................................................................................................81
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3.2.2 Exploded Drawing ...................................................................................................82


3.2.3 Engineering Drawing ...............................................................................................83
3.2.4 Parts’ List .................................................................................................................85
3.2.5 Bill of Materials .......................................................................................................86
3.2.6 Assembly Chart ........................................................................................................87
APPENDIX A: Tables....................................................................................................... 88
APPENDIX B: Sampling Design Strategy ....................................................................... 90
Bibliography ...................................................................................................................... 91
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LIST OF TABLES

Table 1. Shareowners of the Corporation ............................................................ 2


Table 2. Nutrient Contents of Coconut Water per 100 grams. ........................... 21
Table 3. Total population in NCR....................................................................... 43
Table 4. Comparison of standard deviations computed..................................... 43
Table 5. Projected population in NCR from 2020-2025 ..................................... 44
Table 6. Market Segmentation........................................................................... 44
Table 7. Projected Demand ............................................................................... 47
Table 8. Historical Data for Concentrates Supply .............................................. 48
Table 9. Comparison of average annual growth rate ......................................... 49
Table 10. Projected Annual Supply from 2020-2025 ......................................... 50
Table 11. Sales market share in Concentrates in Philippines ............................ 51
Table 12. D-S Gap............................................................................................. 52
Table 13. Price list of competitors’ product ........................................................ 53
Table 14. Cost of Raw Ingredients and Materials .............................................. 55
Table 15. Estimated Price of Product ................................................................ 56
Table 16. Roles and Description of MARIE & Co. Sales Department ................ 62
Table 17. Marketing Sales Force Cost .............................................................. 63
Table 18. Product Life Cycle Plan ..................................................................... 65
Table 19. Facebook Advertisement Cost ........................................................... 67
Table 20. YouTube Advertisement Cost ............................................................ 68
Table 21. Blogger Advertisement Cost .............................................................. 69
Table 22. Free Taste Advertisement Cost ......................................................... 69
Table 23. Promotional Events............................................................................ 70
Table 24. Promotional Events Advertisement Cost ........................................... 70
Table 25. WhenInManila Partnership and Advertisement Cost ......................... 71
Table 26. Summary of Advertisement in Year 1 (2020) ..................................... 72
Table 27. Euromonitor Subscription Fee ........................................................... 73
Table 28. Magazine advertisement cost ............................................................ 74
Table 29. Website Advertisement Cost ............................................................. 75
Table 30. Research and Development Programs .............................................. 76
Table 31. Total Advertising Cost........................................................................ 79
Table 32. Total Marketing Cost.......................................................................... 79
Table 33. Parts List............................................................................................ 85
Table 34. Bill of Materials .................................................................................. 86
Table 35. Assembly Chart ................................................................................. 87
Table 36. Brand Share Performance in Concentrates ....................................... 88
Table 37. 2010 Population of Census ................................................................ 88
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LIST OF FIGURES

Figure 1. SWOT Analysis .......................................................................................8


Figure 2. Michael Porter’s Five Forces of Competition Model ................................9
Figure 3. Age of Respondents .............................................................................. 25
Figure 4. Occupation of Respondents .................................................................. 26
Figure 5. Monthly Income or Allowance of Respondents ...................................... 27
Figure 6. Daily Disposable Income or Allowance of Respondents........................ 28
Figure 7. Residency of the Respondents .............................................................. 29
Figure 8. Residency of the Respondents .............................................................. 30
Figure 9. Coconut Water Consumers ................................................................... 31
Figure 10. Respondents that are Still Willing to Try Nú Coco ............................... 32
Figure 11. Coconut Beverages ............................................................................. 33
Figure 12. Pareto Analysis of Competitors ........................................................... 34
Figure 13. Frequency of Purchasing Coconut Beverage ...................................... 35
Figure 14. Reason of Respondents for Buying Coconut Beverage ...................... 36
Figure 15. Preferred Coconut Beverage Add-ons................................................. 37
Figure 16. Coconut Beverage Properties ............................................................. 38
Figure 17. Channels of Distribution of Coconut Beverage .................................... 39
Figure 18. Packaging of the Product .................................................................... 40
Figure 19. Willingness to Buy ............................................................................... 41
Figure 20. Potential Name of Product................................................................... 41
Figure 21. Inverted Pyramid Market Segmentation .............................................. 42
Figure 22. Logarithmic Trend Line ........................................................................ 49
Figure 23. Respondents’ Disposable Income ....................................................... 54
Figure 24. Respondents’ Willingness to Purchase ............................................... 54
Figure 25. Company Logo .................................................................................... 58
Figure 26. Product Logo ....................................................................................... 59
Figure 27. Product Packaging .............................................................................. 60
Figure 28. Channels of distribution ....................................................................... 60
Figure 29. Hierarchy of Sales Team ..................................................................... 61
Figure 30. Product Life Cycle ............................................................................... 64
Figure 31. Marketing Forms.................................................................................. 78
Figure 32. Chart of Marketing Activities ................................................................ 80
Figure 33. Perspective drawing of PET Square bottle (Isometric; 2D
Wireframe View, 3D Hidden View, Realistic View) ............................................... 81
Figure 34. Exploded drawing of PET Square bottle (Isometric; 2D
Wireframe View, 3D Hidden View, Realistic View) ............................................... 82
Figure 35. Top View of PET Square bottle (Realistic) .......................................... 83
Figure 36. Bottom View of PET Square bottle (Realistic) ..................................... 83
Figure 37. Front View of PET Square bottle without Cap (Realistic) .................... 84
Figure 38. Front View of PET bottle Cap (Realistic) ............................................. 84
Figure 39. Bill of Materials .................................................................................... 86
Figure 40. Sampling Design Strategy using Categorical Formula ........................ 90
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CHAPTER 1: INTRODUCTION

1.1 Executive Summary

1.1.1 Rationale

The nutritional benefits and health benefits that can be derived

from drinking coconut water gave rise to increasing demand on its

consumption worldwide. Shelf-stable coconut water available in the

supermarkets are processed using conventional heat treatment methods

but these processes cause alteration in the delicate flavor profile of

coconut water and on the sensitive nutrients present. The group, together

with their Industry Adviser, came up with tender coconut water

concentrated by Forward Osmosis and preserved by High Pressure

Processing. This process will help increase its shelf-life and decrease the

transportation cost of the coconut water, when exported, since its water

content is decreased.

1.1.2 Name of the Firm

The proponents were able to come up with MARIE & Co. (MARIE

& Corporation) as the name of the firm. The proponents made sure that

the company name to be used is still available under the Department of

Trade and Industry and Securities and Exchange Commission. The

proponents chose this name because of the IE in Marie and because all

of the members are female.


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1.1.3 Brief Description of the Project

The tender coconut water from fresh chosen coconuts (Nú Coco)

is concentrated using Forward Osmosis and preserved by using High

Pressure Processing. These processes help the coconut water have a

longer shelf-life without removing the essential nutrients that are sensitive

to high temperature.

1.2 Introduction: Project Background and History

1.2.1 Project Proponents

MARIE & Co. is a corporation type of organization formed by

Marianne Faye Bandong, Ezekiela Caguing, Francine dela Paz, Maria

Alona Moncada and Emile Punzalan. This organization is composed of 5th

Year Industrial Engineering students from the University of Santo Tomas

and their industry adviser. Table 1 displays a brief information about the

corporation shareowners.

% OF
NAME NATIONALITY
OWNERSHIP
Bandong, Marianne
Filipino 20%
Faye J.
Caguing, Ezekiela S. Filipino 20%
Dela Paz, Francine T. Filipino 20%
Moncada, Maria Alona
Filipino 20%
M.
Punzalan, Mark Emile Filipino 20%
Table 1. Shareowners of the Corporation
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1.2.2 Type of Business Organization

MARIE & Co. is a corporation owned by the shareowners Marianne

Faye Bandong, Ezekiela Caguing, Francine dela Paz, Maria Alona

Moncada and Emile Punzalan. This corporation is considered as stock

corporation for capital stock is divided into shares and authorized to

distribute profits. The shareholders have limited liability and their minimum

capital in this corporation is Php 5,000,000.00. The organization aims to

promote a healthier way of concentrating and preserving coconut water by

producing a tender coconut water using Forward Osmosis and High

Pressure Processing techniques called Nú Coco. Through the

combination of strength and knowledge of shareowners, the corporation

intends to carry out the objectives of this Feasibility study.

1.2.3 Location of the Business

There are several factors to consider in deciding the location of the

business. The proponents kept in mind the availability of suitable labor

supply, price lot, safety of location and adequate infrastructure. Also, they

gave importance to satisfactory supplies of water, lighting, good roads,

transportation and communication.

The shareowners chose to be close to their suppliers and their

target market of the product. The shareowners are planning to

manufacture Nú Coco at the center of the distribution sites, namely,

Caloocan, Quezon City, Manila, Taguig, and Pasig.


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1.3 Industry Analysis

1.3.1 Top Players in the Industry

The top players of the concentrates industry are those with the

highest percent brand share performance, Sunquick and SM Bonus, which

has 33.4% and 5.6% respectively. See Table 36. Concentrates in the

Philippines Analysis from Euromonitor in Appendix A.

1.3.2 Industry Growth for the Past Ten Years

For the past five years the year-over-year growth of the sales of

concentrates has been declining. Since consumers prioritize convenience,

they prefer ready-to-drink beverages than powder and liquid concentrates.

For years 2018 to 2023, given that prices are constant, concentrates are

expected to have negative retail volume Compound Annual Growth Rate

(CAGR) of 2% and positive retail value of 3%.

1.3.3 Industry Category Data

Nú Coco is a product that belongs to the Concentrates Industry.

According to the Concentrates in the Philippines Analysis from

Euromonitor, over the forecast period, overall concentrates is expected to

see a negative retail volume CAGR of 2% and a positive retail value

CAGR of 3% at constant 2017 prices.


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1.3.4 Societal-Environmental Analysis


1.3.4.1 Legal Factors

There are pending laws that may affect the production of

coconuts in the Philippines. One is the Biofuels Act of 2006

(Republic Act 9367) that requires all diesel fuels to be blended

with 5% Coco Methyl Ester (CME). It will affect the livelihood of

3.5 million coconut farmers. According to Philippine Coconut

Authority (PCA) increasing the current biodiesel blend to 5% as

mandated by law will increase domestic crude coconut oil (CNO)

utilization and thereby contribute greatly in the stabilization of

domestic copra prices. The PCA Administration explained that

“farmers are less affected by price shocks and coconut farmers

shall have predictable incomes which will encourage them to

introduce good agricultural practices in their farms.” Quoting a

study done by the Asian Institute of Petroleum Studies, Inc.

(AIPSI), de la Rosa explained that the biofuels industry would

need at least 360 million liters of CME per year if it were to

implement the 5% Biodiesel Blend. To produce this amount of

CME, some 489.8 million kilos of copra are needed, he said.

Another law is Coconut farmers and Industry Development

Act (Senate Bill No. 1233 and House Bill No 5745). According to

Philstar the bill called the Coconut Farmers and Industry

Development Act, was among the priority legislative measures


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pushed by Duterte during his third State of the Nation Address.

Senator Cynthia Villar said that it “includes provisions that would

safeguard the approximately P100-billion coconut levy funds

composed of cash and assets and ensure increased income for

all coconut farmers, such as investment of the trust fund in

Philippine government securities to ensure the safety of the fund

and for assured returns.”

1.3.4.2 Social Factors

The increasing awareness about obesity and other health

problems increased the demand for healthy food and beverages.

Consumers are now shifting from carbonated drinks to healthier

alternatives. In relation to this, the market of coconut water is

expected to continue growing at a CAGR of 24.95%. Coconut

water is a healthy beverage that can provide them the same

refreshment that carbonated and high-sugar beverages offer.

1.3.4.3 Environmental Factors

In the previous years, an outbreak of coconut scale insects

(CSI) or cocolisap in Calabarzon was experienced. There are 2.7

million infested trees. The implementation of CSI-integrated pest

management (CSI-IPM) protocol significantly reduced the

population of CSI and prevented further infestation to non-infested

coconut plantations.
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1.3.4.4 Economic Factors

According to The World Bank, the Philippine economy grew

from 6.9 percent year-on-year in 2016 to 6.7 percent year-on-year

in 2017. Growth was anchored in strong exports, while investment

growth significantly slowed and consumption growth moderated.

The Philippines’ annual exports rose sharply in 2017 and became

the main engine of economic growth, while imports continued to

grow by double-digits. Investment growth slowed in 2017,

following two consecutive years of rapid expansion, and climbing

inflation slowed real wage growth and contributed to a moderation

in private consumption growth.

According to the Philippine Statistics Authority In 2017, Net

National Disposable Income amounted to Php 17.6 trillion at

current prices, an increase of 9.2 percent from 2016. Household

Final Consumption Expenditure and Government Final

Consumption Expenditure amounted to Php 11.6 trillion and Php

1.8 trillion, respectively. With these, total savings in 2017 was Php

4.2 trillion, higher by 9.8 percent compared with that in 2016.


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1.3.5 SWOT Analysis

Figure 1. SWOT Analysis


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1.3.6 Michael Porter’s Five Forces of Competition Model

Figure 2. Michael Porter’s Five Forces of Competition Model

1. Threats of New Entrants: -

The threat of new entrants is moderately high. This is due to the

abundance of coconut suppliers and the abundance of the different

channels of distribution. Additionally, conventional technologies used

to process the coconut water are readily available.

However, knowledge and expertise of specialists and/or

chemists are highly needed to ensure proper processing. The new

product must undergo testing and must also be approved by the Food

and Drug Administration (FDA).


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2. Threat of Substitute Products: --

The threat of substitute products is very high. Concentrated fruit

drinks and other organic or nutritional drinks are abundant in the

market. These concentrated fruit drinks may also offer similar benefits

present in the concentrated coconut water.

These substitutes are also accessible to the consumers. Similar

to concentrated coconut water, these substitutes may also be found in

supermarkets, stalls, online shops, and direct sellers. The threat of

substitute products heightens when consumers find a certain

characteristic or attribute that they need or like from these products,

which are not present in the concentrated coconut water.

3. Bargaining Power of Suppliers: ++

The bargaining power of suppliers is very low. According to the

website of World Atlas, Philippines is the world’s second largest

producer of coconuts. The Philippine Coconut Authority reported that

26% of total agricultural land is dedicated to coconut production, and

68 out of 81 provinces are coconut areas. Also, in the last 3 years,

14.902 Billion nuts were produced.

Therefore, the competition among coconut suppliers are high

which makes their bargaining power very low.


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4. Bargaining Power of Buyers: --

The bargaining power of buyers is very high. Existing

concentrated coconut water in the market have almost similar

components. They only differ in the packaging, flavoring, and the

amount of nutrients present. Also, it does not cost much for buyers to

switch to other concentrated coconut water brands because their price

range are relatively close to each other. The existence of substitute

products may also heighten the bargaining power of buyers.

The channel of distribution may also affect the price of the

product. Therefore, buyers may opt to purchase the product where it is

sold in a cheaper price.

5. Rivalry among Current Competitors: --

The rivalry among current competitors is very high. Since

coconut is abundant in the Philippines, numerous concentrated

coconut water brands already exist in the market at present. The price

range of the direct competitors are relatively close to each other.

Concentrated coconut water brands experience heightened

competition as they not only compete within their industry but also

against other indirect industries. Also, customer loyalty is an important

factor to be considered in rivalry among current competitors.


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1.4 Problem Statement

Once a coconut is opened, the coconut water becomes highly spoilable as

its exposure to external elements affects its sterility. Therefore, in order for this

product to reach the market with a longer shelf-life, there is a need for its

preservation. Nowadays, coconut water is usually preserved by undergoing

thermal treatment (Dharmasena & Jayasundera, 2014). Thermal treatment

however, decreases the nutrient content of the coconut water—affecting most

adversely its vitamin C content. Moreover, it also alters the natural taste of

coconut water which drives manufacturers to add artificial sweeteners and

flavors.

1.5 Objectives of the Study

1.5.1 General Objectives

● To produce a coconut beverage that will serve as a nutritional drink

for consumers

● To determine the marketability of the proposed product

1.5.2 Specific Objectives

● To determine the demand for concentrated coconut water

● To perform a demand and supply analysis of the proposed product

● To determine the demand and supply gap for the proposed product

● To determine the market competition of the proposed product


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● To determine the projected demand and supply of the concentrated

coconut water for the next ten years

● To determine the most efficient branding and packaging of the

proposed product that would give it an edge from existing coconut water

products in supermarkets

● To determine the most effective marketing strategy of the proposed

product

● To determine if the new concentrated tender coconut water is

feasible to produce

1.6 Significance of the Study

Coconut is the most extensively grown and used nut in the world,

playing a significant role in the economic, cultural, and social life of over 80

tropical countries (Varma, et.al., 2015). Coconut water is a popular

refreshing drink in the Philippines, and even in the international market,

due to its high nutritional and medicinal properties. The water of tender

coconut, technically the liquid endosperm, is the most nutritious wholesome

beverage that the nature has provided for the people of the tropics to fight

the sultry heat having a caloric value of 17.4 per 100〖gm〗^3

(Shubhashree, Venkateshwarlu, and Doddamani, 2014). There are

numerous published evidences that proved the significant nutritional,

health, and healing benefits of coconut water. However, conventional


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processing and handling of coconut water alters the delicate flavor profile

of coconut water and the sensitive nutrients present in the fruit. Proper

handling and transport of raw coconut water is a critical issue because

when exposed to air, coconut water can accelerate quality degradation in

terms of rancidity, cloudiness and discoloration caused by enzymes

present in it (Caparino, 2015).

In this study, concentrated coconut water will be produced using

nonthermal technologies such as Forward osmosis and High-pressure

processing. With this, consumers of coconut water will be provided with a

product that contains unaltered nutrients from the fresh coconut fruit and

has longer shelf-life.

1.6.1 Scope & Limitations

Product Limitation

The proposed product is a nutritional concentrated drink made from

coconut which will undergo Forward osmosis and High-pressure

processing. This product will be sold in supermarkets and

convenience stores therefore concentrated coconut water sold in

stalls, online shops or from direct sellers will not be part of the study.

The marketing, technical, and financial aspect of the product will be

the only scope of this feasibility study.

Demographic Limitation
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The target market of this feasibility study is limited to the people

residing in specific cities in National Capital Region (NCR) who

patronize and/or are willing to patronize concentrated fruit drinks from

supermarkets. People residing outside of NCR will not be part of the

study.

Source Limitation

All primary data for this feasibility study are gathered from residents

of specific cities in National Capital Region through the use of

personal and online survey questionnaires distributed by the

proponents. Statistics regarding the current population of National

Capital Region were obtained from the website of the National

Statistics Office of the Philippines. Data pertaining to the demand of

the concentrates industry in the market were gathered from the

website of Euromonitor International. Articles, books, journals, and

other online databases serves as sources of related literature.

1.7 Research Methodology

The proponents forecasted the 2018 National Capital Regions’

household population to project the 2020’s that was used to get the

sample size of the survey. Categorical formula was used to solve the

required sample size with a 5% margin of error. The proponents

conducted both personal and online survey to reach the target number of

respondents needed for the study. To eliminate bias, they used cluster,
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stratified and systematic sampling. They grouped the cities in NCR by

cluster then stratified it into location of supermarkets and convenience

stores. After reaching the target sample, they used convenience sampling

to ask some people through social networking sites to answer the same

prepared questionnaire online through Google forms. The survey

questionnaire consists of 17 questions and has a brief description on what

their proposed product is. The proponents also did market forecasting,

supply and demand forecasting, and other types of forecasting to suffice

the missing information to complete and support their study.

1.8 Review of Related Literature

1.8.1 Philippines’ Coconut Water Industry

Coconut water is the liquid contents of the coconut fruit which is

also known as liquid endosperm. According to Philippine Coconut

Authority, the average volume of coconut water per fruit is 300 ml. Most

of the Coconut Water Manufacturers and according to Philippine

National Standard (2006), they harvest the fruits at 6-9 months old for

optimum quality and flavor. Currently, according to Philippine Statistics

Authority, the Philippines is the second largest producer and importer of

coconut water globally. The global increase in demand and consumption

of coconut water are largely attributed to its nutritional content.


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1.8.2 Coconut water nutritional content

In a comprehensive review by Prades et al. (2012) and Yong et al.

(2012), the main contents of coconut water are carbohydrates and

minerals. The carbohydrate content of a coconut water is mainly from

fructose, glucose, and sucrose. On the other hand, the minerals are

calcium, magnesium, phosphorus, potassium, sodium, and manganese.

(Abdul & Zafar Iqbal, 2011; Chidambaram, Singaraja, Prasanna,

Ganesan & Sundararajan, 2013; Daniel Lima Verde et al., 2009; Mia Jr.

et al. 2006; Prades et al., 2012, Vigliar, Sdepanian, & Fagundes-Neto,

2006; Yong et al., 2009)

1.8.3 Coconut Water Preservation

The challenge that a coconut water poses is that it is highly

perishable. Once the fruit has been opened or the outer layer of the fruit

is damaged, the coconut water inside the fruit easily spoils, (Appaliah et

al., 2015; Costa et al. 2015). In a study conducted by (Agyare et al.,

2012), coconut water should be consumed within 3 hours in ambient

temperature as coconut water has the capacity to support the growth

and survival of E. coli and K. pneumoniae bacteria. Given this issue,

different processing technologies were explored in order to prolong its

shelf life .One of the most common processes is thermal processing

which prevents microorganisms’ growth but has deleterious effect on the

heat-labile nutrients and compounds (Maia Jr. et al., 2006). Other

processes are membrane separation process, ultraviolet radiation,


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concentration, and forward osmosis which all affects the product’s

nutrient content. Thus, given this issue, high pressure processing was

used on coconut water which granted positive results as this process

effectively preserved the coconut water and retained its nutrient content

(Punzalan, 2018).

1.8.4 Packaging

In a review study conducted in 2015 regarding packaging, it was

found that, “new trends in beverage packaging are focusing on the

structure modification of packaging materials and the development of

new active and/or intelligent systems, which can interact with the product

or its environment, improving the conservation of beverages, such as

wine, juice or beer, customer acceptability, and food security.” Currently,

the three major intelligent packaging technologies are sensors,

indicators, and radio frequency identification (RFID). The consumers’

concerns on the packaging of beverages are mainly on the overall

aroma profile evolution over time, chemical degradation processes, and

molecular transfers (aroma or oxygen). These concerns, if not

addressed properly, may lead to the rejection of the product. (Ramos et.

al., 2015)

1.8.5 Transportation

In transporting beverages, it is important to realize the lowest cost

in order to maximize the profit while satisfying the needs of arrival areas.
19

This could be done by applying operations research in the transportation

process of the physical good.


20

CHAPTER 2: MARKET STUDY

2.1 Product Description

The product is a concentrated coconut water packaged in a 330ml

plastic bottle and preserved using Forward Osmosis and High-pressure

Processing in order to prolong its shelf life whilst retaining all its nutritious

properties and natural taste.

2.1.1 Name of Product

Given that the product is concentrated coconut water that retained

all its nutrients, the researchers decided to name it “Nú Coco”—deriving

the name from “nutritious coconut”.

2.1.2 Properties of the Product

Below is the table of the nutrient content of coconut water per 100

grams which was derived from USDA National Nutrient database:

Principle Nutrient Value Percentage of RDA

Energy 19 Kcal 1%

Carbohydrates 3.71 g 3%

Protein 0.72 g 1.5%

Total Fat 0.20 g 1%

Cholesterol 0 mg 0%

Dietary Fiber 1.1 g 3%

Vitamins

Folates 3 µg 0.75%

Niacin 0.080 mg 0.5%

Pantothenic acid 0.043 mg <1%


21

Pyridoxine 0.032 mg 2.5%

Riboflavin 0.057 mg 4%

Thiamin 0.030 mg 2.5%

Vitamin-C 2.4 mg 4%

Vitamin-A 0 IU 0%

Vitamin-E 0 mg 0%

Vitamin-K 0 µg 0%

Electrolytes

Sodium 105 mg 7%

Potassium 250 mg 5%

Minerals

Calcium 24 mg 2.4%

Copper 40 mcg 4.5%

Iron 0.29 mg 3.5%

Magnesium 25 mg 6%

Manganese 0.142 mg 0%

Zinc 0.10 mg 1%

Phyto-nutrients

Auxin (Gibberlin) Present --

Beta Carotene 0 µg --

Cytokines Present --

Lutein-zeaxanthin 0 µg --

Leucoanthocyanin Present --

Table 2. Nutrient Contents of Coconut Water per 100 grams.


22

2.1.4 Uses of the Product

The product is a packaged concentrated coconut which could be

consumed in its state when bought from the market or mixed with water

according to the consumer’s taste preference.

2.1.5 Geographical Areas of Distribution

Based on the result of the survey, the geographical areas that

would be good for the distribution of the product will be in the National

Capital Region—specifically Quezon City. The researchers will prioritize

the distribution of the product in this area since majority of the

respondents of the survey are from this city.

2.2 Demand Analysis – Survey Results Analyses

2.2.1 Research Design

2.2.1.1 Target Market

Marie & Co. aims to successfully market its proposed

product, Nú Coco, to consumers who are aged 10 to 79 years old

and are currently residing in the National Capital Region (NCR).

The target market will also be the residents who do their grocery

shopping in supermarkets and convenience stores. These residents

should also have a daily disposable income or allowance of at least

Php 300.00 to prove that they can afford the proposed product.
23

To narrow down the possible market, the proponents also

aim to target the coconut water consumers that are willing to try the

proposed product. The customers who are not consumers of

coconut water, but are still willing to try, will also be part of the

target market.

2.2.1.2 Sampling Design

The proponents made use of multiple sampling methods in

gathering the primary data needed for the study. The proponents

used cluster sampling to determine the 5 most densely populated

cities in the National Capital Region (NCR). The total population of

NCR, and the cities included in the region, were gathered from

available data in the website of the Philippine Statistics Authority.

The breakdown of the population gathered from the website is

shown in Table 4 in Appendix A.

The proponents chose Quezon City, Manila, Caloocan,

Taguig, and Pasig as the target areas for personal survey

distribution. Stratified sampling is used to distribute personal survey

questionnaires to specific supermarkets, namely SM Supermarket,

Puregold and Robinson’s Supermarket, in the chosen cities.

Personal survey questionnaires will also be distributed to specific

convenience stores specifically 7 Eleven, Ministop and Lawson.

Upon reaching the desired number of respondents, the proponents

made use of convenience sampling to distribute the survey


24

questionnaire online. 70% of the sample size will be gathered from

personal survey and 30% will come from online survey.

To determine the number of respondents needed, the

proponents made use of Categorical Formula. The proponents

conducted at least 100 initial surveys on their target market.

Computation of Sample Size using Categorical formula with

a Margin of Error of 5%:

n = 150.44 ≈ 151 respondents

Where:

n = Required Sample Size

t = 1.96; t-score wherein the confidence level is at 95%

d = Margin of Error

p = percentage of respondents who are willing to buy

q = percentage of respondents who are not willing to buy

2.2.1.3 Data Gathering Procedure

The proponents conducted both personal and online survey

to gather primary data for the study. The proponents went to the
25

supermarkets and convenience store in each of the chosen cities

to conduct the personal survey.

The proponents posted the link of their online survey

questionnaire to social networking sites to reach the desired

respondents from specific cities.

2.2.1.4 Data Analysis (Survey Results)

Number of respondents: 185

1. Age of Respondents

Figure 3. Age of Respondents


Figure 3 shows that the majority of the respondents are 17 to 23

years of age. These data will be useful in determining the appropriate

packaging and aesthetic that will get the attention of the target market.
26

2. Occupation pf Respondents

Figure 4. Occupation of Respondents

Figure 4 shows that 41.6% of the respondents are students,

49.2% are employed, and 9.2% are unemployed. Given these

information, the proponents can strategically establish the price for their

proposed product.
27

3. How much is your monthly income or allowance?

Figure 5. Monthly Income or Allowance of Respondents

Data gathered from this survey question can help the proponents

in estimating the number of respondents who have the financial

capability to purchase their proposed product.

46.5% of the respondents have above Php 20,000.00 monthly

income or allowance, while 53.5% have below Php 20,000.00 monthly

income or allowance. The respondents having a monthly income or

allowance of below Php 20,000.00 will still be able to buy the proposed

product.
28

4. According to the results of the recent annual Consumer Financial

Survey (CFS) of the Banko Sentral ng Pilipinas (BSP), Filipino families

spend 38.5% of their monthly income on food & beverages. Do you

have a daily disposable income of at least Php 300?

Figure 6. Daily Disposable Income or Allowance of Respondents

According to the results of the recent annual Consumer Financial

Survey (CFS) of the Banko Sentral ng Pilipinas (BSP), Filipino families

spend 38.5% of their monthly income on food & beverages.

Figure 6 shows that 86.5% have a daily disposable income or

allowance of at least Php 300.00 which proves that they can afford to

buy the proposed product and still be able to allot money for other

purposes. The respondents who do not have a daily disposable income

or allowance of at least Php 300.00 will not be part of the target market.
29

5. Do you currently reside in Metro Manila?

Figure 7. Residency of the Respondents

Figure 7 shows that 100% of the respondents are residing in

Metro Manila or in the National Capital Region.


30

6. Which City in Metro Manila do you currently reside in?

Figure 8. Residency of the Respondents

The respondents are from different cities of the National Capital

Region. Quezon City has the highest percentage of 15%.


31

7. Do you consume coconut beverages?

Figure 9. Coconut Water Consumers

Figure 9 shows that 82.5% of the respondents consume coconut

beverages, while only 17.5% do not. This data proves that there is a

demand for coconut beverages. Those who answered “No” was given

another follow up question on why they do not consume coconut

beverages. “I prefer other fruit drinks,” “I don’t like it,” and “I haven’t tried

drinking it before” are the common answers that they have provided.
32

8. If you answered “NO,” are you still willing to try our product?

Figure 10. Respondents that are Still Willing to Try Nú Coco

Those who answered “No” from the previous question was asked

again if they are still willing to try the proposed product. 51.6% answered

“Yes,” while 48.6% said “No.” The respondents who are still willing to try

Nú Coco will be included in the target market and will also be part of the

demand. Those who answered “No” will not be part of the target market.
33

9. What coconut beverages have you tried?

Figure 11. Coconut Beverages


Mogu mogu
3, 1% 2, 1%

4, 1% Buko ni Fruitas

8, 2% Vita Coco

Tropical Dew

Nyogi Pure Coconut Water


9, 8,
3%2%
9, 3% 104, 31% Fresh coconut water
12, 4%
17, 5% Lipa Fresh Coconut Water
18, 5%
None

Hydro Coco
59, 18%
La Natural
82, 24%
Coco Royal

Pacific Sun Coco Fresh Natural


Coocnut Water
Tasco Brand Young Coconut

The proponents made use of Pareto analysis to determine the

main competitors of their proposed product. The result of the Pareto

analysis shows that Mogu mogu, Buko ni Fruitas, and Vita Coco are the

major competitors of Nú Coco. Figure 11 shows what 31% have tried

Mogu mogu and 24% have tried Buko ni Fruitas and 18% have tried Vita

Coco.
34

35.00% 120.00%
30.00% 100.00%
25.00%
80.00%
20.00%
60.00%
15.00%
40.00%
10.00%
5.00% 20.00%
0.00% 0.00%

Figure 12. Pareto Analysis of Competitors


35

10. How often do you purchase coconut beverages?

Figure 13. Frequency of Purchasing Coconut Beverage

Figure 13 shows that 44.8% buys coconut beverage once a

month, 13.8% buys thrice a week and 11% do not consume coconut

beverages. Given this data, the proponents anticipate that most of the

consumers in their target market will also buy coconut beverage once a

month.
36

11. For what reason/s do you consume coconut beverages?

Figure 14. Reason of Respondents for Buying Coconut Beverage

Figure 14 shows that 68.3% of the respondents buy coconut

beverage for its health benefits, 64.1% of the respondents buy coconut

beverage as refreshment, and 44.1% buy coconut beverage mainly for

its taste. The proponents can use these information in the technical study

of the proposed product. The proponents can prioritize the nutrient

content and refreshing factor of the coconut beverage to satisfy the

requirements of consumers.
37

12. What add-ons do you prefer on your coconut beverage?

Figure 15. Preferred Coconut Beverage Add-ons

Figure 15 shows that 30.3% prefer their coconut beverage without

any add-ons, 38.6% prefer it with Nata de Coco, and 31% prefer it with

Coconut Meat. The proponents can use this information in the technical

study of their proposed product. They can consider making three variants

of the coconut beverage.


38

13. Rank the following properties based on your preference. (1

being the highest and 5 being the lowest)

Figure 16. Coconut Beverage Properties

Figure 16 shows how respondents ranked the given properties

namely, taste, appearance of coconut water, packaging of the product,

nutrient content and price, based on their preference. 74 respondents

ranked Nutrient Content as their highest requirement. 57 respondents

ranked Taste as their second requirement. 40 respondents ranked Price

as their 3rd requirement. 54 respondents ranked Packaging of the

product as their 4th requirement. And lastly, 52 respondents ranked

Appearance of the coconut water as their last requirement.

The proponents can use these information in the technical study

of their proposed product. The nutrient content can be their main priority,

followed by the taste, price, packaging and lastly, the appearance of the

coconut water.
39

14. Where do you usually buy coconut beverages?

Figure 17. Channels of Distribution of Coconut Beverage

From the given chart above, the 75.9% of the respondents buy

coconut beverage in supermarkets and 56.6% buy from convenience

stores. Other respondents buy coconut beverages in kiosks, street carts

and markets. The proponents are now considering supermarket and

convenience store as their channel of distribution.


40

15. Which kind of packaging for beverages do you prefer?

Figure 18. Packaging of the Product

The proponents provided visual representations of the choices for

the packaging. 42.8% chose plastic bottle, 35.2% chose glass

packaging, 12.4% chose juice carton, and only 9.7% chose canned. The

proponents are now considering plastic bottle as the main packaging of

their proposed product.


41

16. Are you willing to purchase a concentrated coconut water for

Php 50.00 – Php 70.00 for 330 ml?

Figure 19. Willingness to Buy

90.3% of the respondents are willing to buy the proposed product.

This shows that the proposed product has potential market.

17. Choose a striking name for a coconut beverage:

Figure 20. Potential Name of Product

The proponents tested the name of the product to ensure that it will
be striking for the consumers. 46.9% chose Nú Coco as the most striking name
for a coconut beverage. The proponents will name their product Nú Coco.
42

2.3 Demand

2.3.1 Market Segmentation

Technically, market segmentation is the process of dividing the

population of possible customers into distinct groups. Those customers

within the same segment share common characteristics that can help a

firm in targeting those customers and marketing to them effectively

(Lovelock and Wirtz, 2011). Based on the proponent’s forecasting, the

projected total population in NCR aged 10-79 for year 2020 is

10,849,800. The group focused on the region which has a considerably

large number of households since the whole of the Philippines would be

too large to be considered a target market for a starting company.

Figure 21. Inverted Pyramid Market Segmentation


43

2.3.2 Target Demand

The researchers gathered data on the total population in NCR.

The only available data in the Philippine Statistics Authority that they can

use are the total population in NCR in the years 2010 and 2015.

Year Total population in NCR


(in thousands)

2010 9,506,600

2015 10,123,200

Table 3. Total population in NCR

Forecasting Method was used to project the population until the

year 2020, which will be used to determine the sample size for survey

data gathering.

Trend Type Standard Deviation

Linear 110,000

Exponential 6,394,913.15

Logarithmic 493,400.08

Polynomial 6,722,745.79

Power 18,111,853,529,771.40

Table 4. Comparison of standard deviations computed


Using the Linear trend type of forecasting, which yielded the

lowest standard deviation, the projected population in NCR in 2020 is

10,849,800. Using this 2020 projection, the population in NCR for years

2020-2025 were computed.


44

Year Total population in NCR


aged 10-79

2020 10,849,800

2021 10,911,460

2022 10,973,120

2023 11,034,780

2024 11,096,440

2025 11,466,400

Table 5. Projected population in NCR from 2020-2025

Market Segmentation Characteristics Percentage

Total population in NCR aged 10 - 79 years old 100%

Supermarket and convenience store shoppers 133%

Daily disposable income/allowance of Php300 86.5%

Coconut beverages consumers 82.5%

Willing to buy our concentrated coconut water 90.3%


Table 6. Market Segmentation

Computation for Projected Demand:

Target Market Characteristics (G) = A x B x C x D x E

Where:

G = Target Market Characteristics

A = The percentage of the respondents currently residing in the

National Capital Region aged 10 to 49 years old.


45

B = The percentage of respondents who do their grocery shopping

in supermarkets and convenience store.

C = The percentage of the respondents who have a daily

disposable income/allowance of at least Php 300.00.

D = The percentage of the respondents who are coconut water

consumers.

E = The percentage of respondents who are willing to buy the

proposed product, Nú Coco.

Projected Demand = F x (G + N) x (330ml x Frequency of purchase)

Where:

F = Forecasted population of National Capital Region.

G = Target Market Characteristics

N = Percentage of the respondents who are not consumers of

coconut water but are still willing to try Nú Coco.

The population of the National Capital Region (NCR) for the next

five years will be forecasted by the proponents. The forecasted

population of each year will be multiplied to the percentage of the target

market characteristics. The data to be used in the creation of the target

market characteristics will be from the respondents of the survey

questionnaires distributed by the proponents. The target market

characteristics will be composed of:


46

● The percentage of the respondents currently residing in the

National Capital Region.

● The percentage of respondents who do their grocery shopping in

supermarkets.

● The percentage of the respondents who have a daily disposable

income/allowance of Php300

● The percentage of the respondents who are coconut beverage

consumers.

● The percentage of respondents who are willing to buy the

proposed product, Nú Coco.

● The percentage of the respondents who are not coconut water

consumers but are still willing to try Nú Coco will be added to the

demand.
47

Table 7. Projected Demand


*
Population Market Characteristics Projected Demand
in NCR
F 10-79
aged G=(A*B*C*D*E) (in liters)

r I=(F*(G+N*
Year
(0.33 liters
330ml = Frequency
*
e F A B C D E N 0.33 of
Frequency
liters Purchase*
of
q purchase)))
2020 10,849,800 19,000,983
2021 10,911,460 19,108,967
2022 u
10,973,120 19,216,950
100% 133% 86.5% 82.5% 90.3% 51.6% 0.33 12
2023 11,034,780 19,324,934
2024 e
11,096,440 19,432,917
2025 11,466,400 20,080,819
Frequency of Purchase from survey = once a month x 12 months/year = 12 units/year
48

2.4 Supply Analysis – Research

2.4.1 Present Supply

To compute for the supply of the Concentrates, the proponents

used the price of Sunquick Concentrated Fruit Juice, which is the leading

brand name based on the data from Euromonitor. Since the average

price of Sunquick is ₱116.00 for 330mL, then the historical supply of that

product will be:

Supply = Sales of Sunquick / Price of Sunquick

Historical Supply
Period Year
(in million liters)
1 2015 16.3
2 2016 15.7
3 2017 15.1
Table 8. Historical Data for Concentrates Supply
Using the data above, the projected number of supply is computed to

compare the average annual growth rate of each trend type.


49

2.4.2 Projected Supply

Using the data above, the projected number of supply is computed

to compare the average annual growth rate of each trend type.

Average Annual
Trend Type
Growth rate
Linear -3.248%
Exponential -3.729%
Logarithmic -2.072%
Polynomial -3.248%
Power -2.692%
Table 9. Comparison of average annual growth rate

The proponents used Logarithmic Projection Method to forecast the

possible supply because it yielded -2.072% average annual growth rate

which is closest to the 18.3% average annual growth rate forecasted by

the Euromonitor: Forecast Sales of Concentrates by Category: % Value

Growth 2017-2022.

Logarithmic Trend Line


20000000

y = -1E+06ln(x) + 2E+07
15000000
R² = 0.9777

10000000

5000000

0
1 2 3

Series1 Series2 Log. (Series2)

Figure 22. Logarithmic Trend Line


50

To compute for the projected supply, equation from the Logarithmic

trend line is used:

y = -1E+06ln(x) + 2E+07

Where:

y = projected supply

x = period

Projected Supply
Period Year
(in liters)
6 2020 18,208,241
7 2021 18,054,090
8 2022 17,920,558
9 2023 17,802,775
10 2024 17,697,415
11 2025 17,602,105
Table 10. Projected Annual Supply from 2020-2025
51

2.5 Demand Supply Analysis

The target market share for sales was based from the product with the

lowest average market share for sales which is 5.5% from SM Bonus.

Table 11. Sales market share in Concentrates in Philippines

Year Sunquick SM Bonus


2015 33.7% 5.3%
2016 33.4% 5.6%
2017 33.4% 5.6%
Average Market Share 33.5% 5.5%

Projected target market share for sales for the years 2020-2025 was

computed with a 18.3% average annual growth rate forecasted by the

Euromonitor: Forecast Sales of Concentrates by Category: % Value Growth

2017-2022, starting with 2017 as period 1 and making 2020 as period 4 and so

on.

D = 5.5% * (1 + 18.3%) n

Where: n = period

The demand and supply data used for the following table were computed

previously.
52

E
B D
A C Target
Projected Target
Period Year Demand D-S Gap Demand
Supply Market
(in liters) (A-B) (in liters)
(in liters) Share
(C*D)
4 2020 31,369,132 18,208,241 13,160,891.44 26.03% 206,351
5 2021 31,547,404 18,054,090 13,493,314.59 32.53% 343,151
6 2022 31,725,677 17,920,558 13,805,118.45 39.04% 506,111
7 2023 31,903,949 17,802,775 14,101,173.96 45.55% 693,343
8 2024 32,082,222 17,697,415 14,384,806.95 52.05% 903,329
9 2025 33,151,857 17,602,105 15,549,751.96 58.56% 1,451,535
Table 12. D-S Gap
53

2.6 PRICE STUDY AND STRATEGIES

2.6.1. Competitor’s Price

Since Nú Coco is a new competitor in the industry, the prices of

direct and indirect competitors’ product were considered. These products are

enumerated in the table below together with their corresponding volume and

price. Nú Coco’s price will be set within the price range of the competitors’

products in order to compete effectively in the market despite having a more

expensive processing technology.

Table 13. Price list of competitors’ product

BRAND Volume Price (in Php)

Mogu Mogu: Coconut 320 35


Flavored Drink with Nata
de Coco
Vita Coco 330 42

Nyogi Pure Coconut 330 42


Water
Tasco Brand Young 300 32
Coconut
Coco Royal Pure 300 39.5
Coconut Water
Lipa Fresh Coconut 500 43.50
Water
Buko ni Fruitas 330 50

Tropicana Coco Quench 330 42.50


Coconut Water Drink
54

2.6.2. Customer/Survey Based

The proponents also considered the price of Nú Coco based on the survey

conducted for the study. The figure below illustrates the validity of the

respondent’s ability to purchase the product and their willingness to purchase it.

The respondents, having a disposable income of at least Php 300, are willing to

purchase Nú Coco for the price of Php 50 to Php 70. Given this information, Nú

Coco’s price shall be set lower or within this range in order to fit the customers’

budget.

Figure 23. Respondents’ Disposable Income

According to the results of the recent annual Consumer


Financial Survey (CFS) of the Banko Sentral ng Pilipinas
(BSP), Filipino families spend 38.5% of their monthly
income on food & beverages. Do you have a daily
disposable income of at least Php 300?
13.5%

Yes
No

86.5%

Figure 24. Respondents’ Willingness to Purchase

Are you willing to purchase a concentrated coconut


water for Php 50-70 for 330 ml?
9.7%

Yes
90.3% No
55

2.6.3. Cost Base (Raw Ingredients and Materials)

Nú Coco’s price will also be based from the market price of coconut water

and the materials that will be used for its packaging. The price estimates of the

raw ingredients and the materials are illustrated on the table below.

Table 14. Cost of Raw Ingredients and Materials


Raw Ingredients Price (in Php)

Coconut Water 3.33

Materials

Plastic Bottle 7.75

Product Label 10.75

The price of the raw ingredients and materials are based only on its

current price in the market and does not guarantee its accuracy due to

economic fluctuation and its seasonality.


56

2.6.4. Other Pricing Factors of Nú Coco

The pricing strategy will also include the location and cost of the

production plant, equipments, and labour cost. Nú Coco’s plant shall be a rented

space in the NCR while the location shall be chosen based on the location’s

centricity. Considering that the equipments that will be used for the product’s

processing costs millions of pesos and the plant, together with the labour cost will

be based on NCR rate, the price of Nú Coco is estimated to be in the higher price

bracket of coconut beverages. The table below illustrates the estimated price of

Nú Coco.

Table 15. Estimated Price of Product


Product Price Estimate
(with volume of 330 ml) (in Php)
Nú Coco pure 45
concentrated coconut
water
Nú Coco concentrated 48
coconut water with Nata
de Coco
Nú Coco concentrated 48
coconut water with
coconut meat shavings
57

2.7 MARKETING PROGRAMS AND STRATEGIES

2.7.1 Target Market

Target market is the intended group of customers for the given product or

service. Marie & Co. Corporation aims to capture the market aged from 10 to 79

of any gender residing in the cities in the area of the National Capital Region

(NCR) to help in providing a nutritious beverage which is a concentrated

coconut water. Within this age group, people start to be aware of the health risks

of consuming unhealthy beverages. They tend to look for replacements to the

carbonated and high sugar level beverages that they consume. The market of

the product is those who are health conscious and those who wants to avoid the

unhealthy consumption of beverages. The corporation also targets the

consumers that usually do their grocery shopping in the supermarkets and those

who buy in convenience stores.

2.7.2 Product-mix Strategies

In the introduction stage of the life cycle, Marie & Co. will be selling the

concentrated coconut water in only one serving size which is 330 milliliters. The

corporation will continue to improve and develop the product to be able to offer

new variants to the current customers and to attract new ones. The product will

be sold in different serving sizes and with different add-ons such as Nata de

coco, and coconut meat.


58

2.7.3 Branding & Packaging

Corporation

The logo of Marie & Co. projects an image of a corporation that is

innovative and has originality. The color yellow shows happy and positive

energy that attracts the customers.

Figure
Figure 25. Company Logo
59

Product

The brand name Nú Coco yielded the highest votes out of the three

other choices from the survey. It was the most appealing and appropriate

for the product. “Nú” was from the word nutritious, and the word “Coco” is

from coconut. Nú Coco is short for nutritious coconut which says a lot

about the proponents’ product.

Figure 26. Product Logo

Packaging

For the packaging of the product, the plastic bottle yielded the

highest votes among all the options. The plastic bottle to be used is a

Polyethylene Terephthalate (PET) square bottle. The color of the bottle

itself is white as shown in Figure 27 to create an impression of

cleanliness. The font color of the brand name which is green suggests that

the product is natural and healthy. The light green background suggests

that the product is nutritious. The whole image of the product projects a

healthy beverage. The plastic bottle can be reused and recycled. The

whole packaging cost is reasonable and beneficial for the corporation.


60

FRONT BACK
Corporation Logo

Brand
Name

Nutrition Facts

Ingredients

Bar Code

Figure 27. Product Packaging

2.7.4 Channels of Distribution

Supermarkets &
Convenient Stores Customers

Marie & Co. Plant


Figure 28. Channels of distribution

The distribution channel of the corporation is as shown above in

Figure 28. The corporation will first distribute its product to the leading

supermarkets (SM Supermarkets, Puregold, & Robinsons) and

convenience stores (7 eleven & Ministop) in the cities in NCR. The product

will be sold indirectly to consumers through these supermarkets and

convenience stores. The corporation will expand its channel of distribution

to reach more customers and to gain more popularity.


61

2.7.5.1 Marketing & Sales Force

The division of a business that's responsible for selling products or

services. Evaluating your current sales force is an important step in the

process of deciding whether and how to grow your sales team.

Figure 29. Hierarchy of Sales Team

Sales force is the division of a business that is responsible for

selling the product. MARIE & Co. will focus its distribution channels to the

three leading supermarkets in NCR (SM Supermarket, Robinsons and

Puregold) and to two highest grossing convenience stores (7 eleven and

Ministop) to distribute Nú Coco. The sales department has a vital role for

each will be important contributors to the success of MARIE & Co. The

sales representatives must know the product and its features to be able to
62

address all the clients’ inquiries and discuss its benefits to the clients. The

succeeding table shows the description of each sales department position.

Position Roles
 Responsible for planning and
implementing sales, marketing and
product development programs, both
short and long range
General
 Identifies marketing
Manager for
opportunities by identifying customer
Marketing and
requirements
Sales
 Improves product marketability
and profitability by researching,
identifying and capitalizing on market
opportunities
 Directs a team of sales
professionals to set goals, look at data,
motivate and help create marketing
opportunities
Sales Manager  Determines ways to streamline
and improve the sales process
 Ensures that the decisions and
policies are implemented by the sales
team
 Handles affairs to its assigned
supermarket or convenience store’s
head office
 Reports its progress to the
Sales Sales Manager
Representative  Interests the management of the
retailers to buy and resell the product
 Addresses all the clients’
inquiries and discuss its benefits to the
clients
Table 16. Roles and Description of MARIE & Co. Sales Department
63

Year General Sales Sales Total Marketing


Manager for Manager Representative Sales Force Cost
Marketing and
Sales

2020 748,800 492,928 1,194, 270 1,480,582

2021 748,800 492,928 1,194, 270 1,480,582

2022 748,800 492,928 1,194, 270 1,480,582

2023 748,800 492,928 1,194, 270 1,480,582

2024 748,800 492,928 1,194, 270 1,480,582

2025 748,800 492,928 1,194, 270 1,480,582

2026 748,800 492,928 1,194, 270 1,480,582

2027 748,800 492,928 1,194, 270 1,480,582

2028 748,800 492,928 1,194, 270 1,480,582

2029 748,800 492,928 1,194, 270 1,480,582

Table 17. Marketing Sales Force Cost


64

2.7.5.2 Nu Coco Life Cycle

The product is Sales start to


introduced to grow as people
the market. become aware
Sale increase is
Marketing and of the product.
slow as Product sales
advertising Profit also
competition
the product’s starts to decline. The
appears in the competition in
features are increase
market. the market is
done on this rapidly as
Improvements stiff. Production
phase. The proportional to
on production could be
sales and sales and
should be done terminated if it
profit is low as advertising
to reduce costs. brings negative
people are still shifts to
being persuasive profits.
introduced to from
the product. informative.

Figure 30. Product Life Cycle


65

Introduction (3 Years)  Research for cheaper, better and


2020-2022 more eco-friendly materials.
 Develop product durability and
functionality
 Find suppliers for researched
better product parts.
 Production process
enhancements or modifications
are done.
 Advertising to introduce product
to market is done.

Growth (6 Years)  Production capacity may need


2023-2028 adjustments with the demand for
product rising.
 Product design is experiencing
fewer modifications.
 Forecasting of demand and
capacity for the product is done.
 Advertising shifts to persuasive
to increase sales.

Maturity or Stabilization (20 Years)  Production processes is


2029-2049 innovatively established to
produce more in short periods of
time and reduce scrap or product
defect costs.
 Advertising against competitors
is done.
 Volume of production depends
on the forecasted demand.

Decline ● Product’s profit contribution is


(5 Years) evaluated.
2050-2054 ● Low or negative profit and no
special contributions to the
organization terminates product
production

Table 18. Product Life Cycle Plan


66

2.7.6 Advertising & Promos

Budget Allocation for Advertisements

2.7.6.1 Internet Advertising

Facebook Page

In the Philippines, the number of Facebook users is

expected to reach 36.2 million to 29.88 million in 2016.

Furthermore, two billion people use Facebook every month to

connect with friends and family, and to discover things that

matter. With this, it is the most popular social network worldwide.

With the ease of creating a Facebook page and the versatility of

Facebook ads, MARIE & Co. can reach the target demand of Nú

Coco with its help. Since the proponents have a specific value of

demand, they chose to select the number of people they want to

reach with the advertisement and charge a fixed cost from there.

Facebook’s cost per mile (CPM) charges Php590.00 per

thousand impressions.
67

Facebook Cost per


Year Target Audience Total Cost
Thousand Reach
2020 ₱590.00 70,000 ₱41,300.00
2021 ₱590.00 72,500 ₱42,775.00
2022 ₱590.00 77,750 ₱45,872.50
2023 ₱590.00 83,500 ₱49,265.00
2024 ₱590.00 89,900 ₱53,041.00
2025 ₱590.00 96,900 ₱57,171.00
2026 ₱590.00 104,600 ₱61,714.00
2027 ₱590.00 110,000 ₱64,900.00
2028 ₱590.00 122,300 ₱72,157.00
2029 ₱590.00 133,000 ₱78,470.00
Table 19. Facebook Advertisement Cost
Youtube

87% of Filipino internet users watch online video

content. A YouTube Profiling Study in the Philippines with Kantar

TNS was conducted. According to the results, More than 85% of

online Filipinos watch YouTube and 63% of Filipinos agree that

YouTube helps them decide which brands to buy. With the

proponents’ product newly entering the market, it is

recommended to find advertising medium which caters most of

the users in the Philippines. YouTube advertisements cost

Php5.40 per view. They let the proponents choose an option to

reach just the people likely to be interested in the product.


68

YouTube Cost per Target Audience


Year Total Cost
View Reach
2020 ₱5.40 10,000 ₱54,000.00
2021 ₱5.40 12,500 ₱67,500.00
2022 ₱5.40 17,750 ₱95,850.00
2023 ₱5.40 23,500 ₱126,900.00
2024 ₱5.40 29,900 ₱161,460.00
2025 ₱5.40 36,900 ₱199,260.00
2026 ₱5.40 44,600 ₱240,840.00
2027 ₱5.40 50,000 ₱270,000.00
2028 ₱5.40 62,300 ₱336,420.00
2029 ₱5.40 73,000 ₱394,200.00
Table 20. YouTube Advertisement Cost
A recent meta-analysis conducted by BrandScience,

Data2Decisions, GfK, Kantar Worldpanel, MarketingScan,

MarketShare, and others reveals that YouTube advertisements

offer a higher RIO than traditional television ads in almost 80% of

the studies. However, the propoents have to consider their

investment, as there exist a wide range of price points for

running YouTube ads.

Food blogger/vlogger

MARIE & Co. will invite known food bloggers and food

video bloggers from the Philippines to try and taste Nú Coco,

share their insights and thoughts regarding the nutrition factors,

price, taste, packaging, and other relevant aspects of the

product. The company then, will use their feedback as an

opportunity to further advertise their product on social media and

also a way to gather areas for improvement of the product.


69

No. of Budget per


Year Total Cost
bloggers Blogger
2020 1 ₱50,000 ₱50,000.00
2021 2 ₱60,000 ₱120,000.00
2022 4 ₱70,000 ₱280,000.00
Table 21. Blogger Advertisement Cost

2.7.6.2 On-site Advertising

Free Taste

MARIE & Co. will be serving a limited supply of free

taste tests of Nú Coco in SM Supermarket which is the top

supermarket in the Philippines. This aims to let the consumers

experience the real taste of the product while having the same

nutrient contents with the fresh coconut water and at the same

time, encourage them to purchase the product itself.

Cost Quantity (in


Year Total Cost
per liter liters)
2020 ₱26.015 16.5 ₱429.25
2021 ₱26.015 26.4 ₱686.80
2022 ₱26.015 29.7 ₱772.65
Table 22. Free Taste Advertisement Cost

Promotional Events

Since the product promotes health in all ages,

the proponents decided to different promotional events to

advertise Nú Coco. This places a sense of confidence in the

consumers that the product is made with quality and chosen

ingredients for a great cause. The succeeding table shows the


70

promotional event plans of the company together with the

specific activities to be held.

Event Specific Activities to be Held


 Seminars about health
and well-being would be
conducted in partnership with
MARIE & Co.
 Practical trips on how
Health Awareness Campaign
to stay healthy and take care
(High school and college
of the health will be shared
universities)
and discussed.
 The health benefits
and nutrition content of
coconuts will also be
discussed.
 A dance video will be
uploaded and sent to the
company.
 Contestants must
dance the routine with the
Dance Video Contest product.
 The dance must be
done in random places.
 The contestant with
the most number of views will
win.
 This can serve as a
great medium in selling Nú
Coco in the event.
Fitness events (to be done on  A costly way but most
Year 5 where the budget can effective since it gives the
allow more extravagant events) opportunity to sell the
products directly to the
customer and also get
feedbacks.
Table 23. Promotional Events

Activity Total Cost


Health Awareness ₱85,700.00
Campaign
Dance Video ₱80,000.00
Contest
Table 24. Promotional Events Advertisement Cost
71

2.7.6.3 Partnerships

When In Manila

Most Filipinos spend their time online, that is why

marketers invade the social media platform in advertising their

products. WhenInManila is ranked as the top blog and online

magazine in the Philippines where in hundreds of contributors,

writers, photographers and videographers cover and express

everything worth knowing about for Filipinos. They get over ten

million impressions per day based on an audit by a globally

leading digital marketing firm. In order to get featured in their

website, MARIE & Co. are to work on a partnership and

sponsorship with them.

Year Cost
2020 ₱35,000.00
Table 25. WhenInManila Partnership and Advertisement Cost
72

Department of Health (DOH)

Since the product promotes health benefits,

specifically from coconuts, the proponents plan to promote

the product with the help of DOH. DOH issues online articles

about health. With this, coconut can be more promoted as a

nutritious fruit and that more and more people can be more

aware and appreciate more of its nutritional benefits. A cost

effective way to market the product while promoting health is

to publish and promote Nú Coco on their website, along with

the nutritional benefits discussed.

Medium Total Cost


Internet ₱145,300.00
On-site ₱167,929.25
Partnerships ₱35,000.00
Total ₱348,229.25
Table 26. Summary of Advertisement in Year 1 (2020)

2.7.7 Marketing Research & Development Program

One of the sub-groups of the Marketing Division of the company is

the Research and Development Team. This team will be in charge of the

continuous research for new technology, trends, update on the economic

standing of the company, and improve its current systems and products.

They are responsible for keeping the company updated in terms of news

and technology to have a competitive edge in the market.


73

Research Reference: Euromonitor International

Euromonitor International is the global leading strategic

market research provider. It delivers proprietary data and analysis on

hundreds of consumer products and services around the world which can

help the company in strategic planning. A subscription to their website is

valid for five years, this can be a guide for the company on how to assess

their market share and their strategic plans for the upcoming years.

Year Subscription
Fee
2022 ₱10,000.00
2023 ₱10,000.00
2024 ₱10,000.00
2025 ₱10,000.00
2026 ₱10,000.00
Table 27. Euromonitor Subscription Fee
74

Magazine Subscriptions

The proponents decided to subscribe to the following

applicable business magazines as a resource for the Research and

Development team to keep the company informed of the latest business

news. Since these magazines are internationally distributed, these can

increase the competency of the business by having an outside preview in

the world of business. Furthermore, it can give new ideas and introduce

new techniques in entrepreneurship.

Magazine Issues per year Cost per year


Beverage Digest 22 issues plus special ₱49,950.00
issues
Bloomberg Business 50 issues plus 4 bonus ₱22,673.52
Week issues
Entrepreneur Magazine 12 issues ₱2,627.47
Magazine Subscription Total Cost ₱75,250.99
Table 28. Magazine advertisement cost
75

Website Registrations

To widen the scope for the resources, the proponents would

refer to reliable websites online. Registration on all the following websites is

free.

Website Name Website Link Information About the


Website
This website gives news
updates about the
Entrepreneur
Philippine economy. They
Philippines: https://www.entrepre
give tips in starting and
Business Ideas for neur.com.ph/
growing a business. Also,
Entrepreneurs
they provide financial and
franchising tips.
This website offers articles
about using technology for
Automation World | safety, security, operations
https://www.automati
Covering the field of and more. They also
onworld.com/
industrial evolution feature new gadgets that
can be used in a
manufacturing setting.
This website is used as a
reference to be able to
Philippines continuously informed
Business, Financial https://business.inqui about the business
and Economic rer.net/ economy in the
News | Inquirer.net Philippines. It highlights
new trends and news in
the local setting.
Table 29. Website Advertisement Cost
76

Other Marketing Research & Development Programs

Research & Development Description


Program
 Ensures products are still marketable
and up-to-date
 Check and gather feedback if the
product is still satisfying the customer
Existing Product Check ups needs
 Potential changes or upgrades are
considered
 Finds new solution if the
manufacturing process must change
 Conducts regular quality check ups
of the process and product to ensure
Quality Checks smooth flow
 Assures the company that products
meet the predetermined quality standards
 Aids company in staying competitive
with others in the industry; developing and
updating the products created by the
company
 Analyze the products other
Innovation
businesses are creating, inside and
outside the industry
 Directs the company based on the
information it provides and products it
creates
 Establish the official website and let
customers post or comment about the
product
 Other people can see other’s review
and that adds to the company’s pressure
Customer Care to offer high quality products continuously
 Establish a health blog that will
discuss the benefits of the product
 This is a good way to also get their
comments, questions and feedback to use
for improvement purposes
Table 30. Research and Development Programs

2.7.8 Marketing Forms

Marketing forms serve as documentation of transactions between

the seller and the consumer and between the seller and supplier. The
77

proponents designed an Official Receipt for their marketing forms. Every

business organization is mandated by the Bureau of Internal Revenue

(BIR) to issue an official receipt for their business activities. Official receipts

serve as documentation of every financial transactions that have taken

place.
78

Figure 31. Marketing Forms


79

2.8 TOTAL MARKETING COSTS


The following tables below show the total advertising costs and marketin

costs for the study.

Year Social Media On-Site Partnerships Total Advertising


Ads Ads Cost
2020 ₱145,300.00 ₱86,129.25 ₱35,000.00 ₱266,429.25
2021 ₱230,275.00 ₱80,686.80 - ₱310,961.80
2022 ₱421,722.50 ₱772.65 - ₱422,495.15
2023 ₱176,165.00 - - ₱176,165.00
2024 ₱214,501.00 - - ₱214,501.00
2025 ₱256,431.00 - - ₱256,431.00
2026 ₱302,554.00 - - ₱302,554.00
2027 ₱334,900.00 - - ₱334,900.00
2028 ₱408,577.00 - - ₱408,577.00
2029 ₱472,670.00 - - ₱472,670.00
Table 31. Total Advertising Cost

Year Advertising Packaging cost Marketing Sales Research and Total Marketing
Cost Force Cost Development Cost
2020 ₱266,429.25 ₱119,296,954 ₱1,480,582 ₱59,950.00 ₱121,103,915
2021 ₱310,961.80 ₱119,296,954 ₱1,480,582 ₱32,673.52 ₱121,121,171
2022 ₱422,495.15 ₱119,296,954 ₱1,480,582 ₱12,627.47 ₱121,212,659
2023 ₱176,165.00 ₱119,296,954 ₱1,480,582 ₱10,000.00 ₱120,963,701
2024 ₱214,501.00 ₱119,296,954 ₱1,480,582 ₱10,000.00 ₱121,002,037
2025 ₱256,431.00 ₱119,296,954 ₱1,480,582 ₱121,033,967
2026 ₱302,554.00 ₱119,296,954 ₱1,480,582 ₱121,080,090
2027 ₱334,900.00 ₱119,296,954 ₱1,480,582 ₱121,112,436
2028 ₱408,577.00 ₱119,296,954 ₱1,480,582 ₱121,186,113
2029 ₱472,670.00 ₱119,296,954 ₱1,480,582 ₱121,250,206
Table 32. Total Marketing Cost
80

2.9 GANTT CHART OF MARKETING ACTIVITIES

Figure 32. Chart of Marketing Activities


81

CHAPTER 3: TECHNICAL STUDY

3.1 Product Properties

Physical Properties

Nú Coco will be packaged in a Polyethylene terephthalate (PET) Square

drinking bottle with a volume of 330 milliliters. The PET bottles will be

supplied by Bestpak Manufacturing Enterprises, Inc. The label will be made

from plastic sticker and will contain the necessary details of the product. It

will be supplied by Howay Philippines, Inc. The concentrated coconut water

will also be outsourced.

3.2 Product Design

3.2.1 Perspective Drawing

Figure 33. Perspective drawing of PET Square bottle (Isometric; 2D Wireframe


View, 3D Hidden View, Realistic View)
82

3.2.2 Exploded Drawing

Figure 34. Exploded drawing of PET Square bottle (Isometric; 2D Wireframe


View, 3D Hidden View, Realistic View)
83

3.2.3 Engineering Drawing

The following figures represent the technical views and

dimensions of the product, Nú Coco. The unit of measurement used is

inches.

Figure 35. Top View of PET Square bottle (Realistic)

Figure 36. Bottom View of PET Square bottle (Realistic)


84

Figure 37. Front View of PET Square bottle without Cap (Realistic)

Figure 38. Front View of PET bottle Cap (Realistic)


85

3.2.4 Parts’ List

Parts List
Group Name: MARIE & Co.

Product: Nú Coco

Prepared by: Marianne Faye J. Bandong, Ezekiela S. Caguing, Francine Marie


T. dela Paz, Maria Alona M. Moncada
Date: November 27, 2018

Part No. Part Name Quantity Material Size (in) Make or


Buy
1 Bottle Cap 1 PET 1.2 Diameter Buy
0.7 Height
0.1 Thickness
2 Bottle 1 PET 0.5 Diameter of Buy
Opening
6.2 Height
0.1 Thickness
1.5 Width
3 Label 1 Clear 6 Length Buy
plastic 5.5 Width
sticker
4 Coconut 330 ml Not Not Buy
Water Applicable Applicable
Table 33. Parts List
86

3.2.5 Bill of Materials

Figure 39. Bill of Materials

Bill of Materials
Group Name: MARIE & Co.

Product: Nú Coco

Prepared by: Marianne Faye J. Bandong, Ezekiela S. Caguing, Francine Marie T. dela
Paz, Maria Alona M. Moncada
Date: November 27, 2018

Part No. Part Name Quantity Material Size (in) Make or Cost per
Buy Unit
(Php)
1 Bottle Cap 1 PET 1.2 Diameter Buy
0.7 Height
0.1 Thickness
2 Bottle 1 PET 0.5 Diameter of Buy 7.75
Opening
6.2 Height
0.1 Thickness
1.5 Width
3 Label 1 Clear 6 Length Buy 10.75
plastic 5.5 Width
sticker
4 Coconut 330 ml Not Not Buy 3.33
Water Applicable Applicable
Table 34. Bill of Materials
87

3.2.6 Assembly Chart

Assembly Chart
Group Name: MARIE & Co.
Product: Nú Coco

Table 35. Assembly Chart


The first subassembly denoted by SA-1 will be for the preparation of the

concentrated coconut water that will be transferred into the bottle and sealed

with the bottle cap. The final assembly will be for placing label of the finished

product. The finished product will then undergo a quality check or inspection

before dispatching to specific supermarkets and convenience stores.


88

APPENDIX A: Tables

Table 36. Brand Share Performance in Concentrates

Brand Share Performance in Concentrates


% Share (LBN) - Off-trade - 2008-2017

Brand 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
name

Sunquick 33.8 33.9 32.9 33.0 32.7 33.0 33.5 33.7 33.4 33.4

SM Bonus 5.6 5.3 4.9 4.8 4.9 5.0 5.1 5.3 5.6 5.6

Others 60.6 60.8 62.2 62.2 62.4 62.0 61.4 61.0 61.1 61.0
Source: Euromonitor International.

Table 37. 2010 Population of Census

Population
Name Status Census
2010

NCR, 1st District


(Capital District, District 1,323,735
Manila)

Manila City 1,323,735

NCR, 2nd District


3,458,188
(Eastern Manila District
District)

Mandaluyong City 268,674

Marikina City 344,886

Pasig City 537,374

Quezon City City 2,205,462

San Juan City 101,792

NCR, 3rd District


District 2,094,162
(CAMANAVA District)

Caloocan City 1,167,361

Malabon City 280,000

Navotas City 192,988


89

Valenzuela City 453,813

NCR, 4th District


(Southern Manila District 2,602,737
District)

Las Piñas City 442,015

Makati City 438,683

Muntinlupa City 372,710

Parañaque City 475,740

Pasay City 317,013

Pateros City 51,245

Taguig City 505,331

Metro Manila (National


Region 9,506,600
Capital Region, NCR)
Source: Philippine Statistics Authority (web), 2010
90

APPENDIX B: Sampling Design Strategy

Using Categorical Formula:

For Personal Survey (70%)


Total Respondents needed: 106

Stratified
Total
Percentage Areas of
Respondents
Distribution
21.74% Quezon City 10
19.57% Manila 9
19.57% Caloocan 9
19.57% Taguig 9
19.57% Pasig 9

For Online Survey (30%)


Total Respondents needed: 46

Stratified
Total
Percentage Areas of
Respondents
Distribution
8.70% Mandaluyong 4
8.70% Marikina 4
8.70% San Juan 4
8.70% Malabon 4
8.70% Navotas 4
8.70% Valenzuela 4
8.70% Las Piñas 4
8.70% Makati 4
8.70% Muntinlupa 4
8.70% Parañaque 4
6.52% Pasay 3
6.52% Pateros 3
Figure 40. Sampling Design Strategy using Categorical Formula
91

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