Republic of the Philippines

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

QUEZONCITYBRANCH

METRO MUSHROOM GROWERS CORP.

Feasibility Study

Bachelor of Science in Business Administration

Major in Marketing Management

Benavidez, Barbara Nicole R.

Doctor, Joenard C.

Fornoles, Pablito F.

Mejia, Marie Fel A.

Pacyaan, Fhilip S.

Peña, Pia Mae A.

Sulayao, Mark Eric L.

Vargas, Mark Angelo P.

 ORGANIZATIONAL ASPECT
Management in all business aspects and management activities plays a vital role in
establishing a business. It is a formation of people’s effort intended for accomplishing and
achieving desired goals efficiently and effectively. Its functions are planning, organizing, leading
and controlling. It indicates the flow of authority and manpower needed by the organization and
their roles and responsibilities. It is the act compromising the utilization of human, financial and
technological resources of a firm to achieve desired results. Thus, management is the one that
runs and responsible for the success and failure of an organization.
To ascertain the productiveness of an organization set-up and the proficiency of an
individual is the objective of organizational aspect in a feasibility study. It will also determine the
fulfillment of the project study. Organizational aspect includes the implementation plan of the
management. This aspect includes the form of ownership, organizational structure, and project
schedule.
Type of business organization
The business is in line with manufacturing and distributing industry. The proponents decided
and agreed on a corporation type of business organization. The reason why the owners chose
this type of business organization is that, owners are not personally responsible for the risk and
liabilities. Apart from this, its existence has no limits; ownership can be pass on to different
owners, and to easily raise our capital through issuance of stocks to investors.

Management during the pre-operating period

Metro Mushroom Growers Corp. is a start-up business who ventures in growing and distributing
fresh white oyster mushrooms. The word Metro in the name of the business emphasizes that
the company grows and delivers its product mainly in the Metropolitan city of Manila. The
company is organized as a corporation composed of eight (8) respective shareholders on its
initial operation.

Beginning Capital

The Corporation will acquire pre-operating funds by applying bank loan to BDO
amounting to one million pesos (P1, 000,000.00) payable within 3 year terms. The
expected interest in the bank is 4.27% per annum, a total of 12.81% in three years. Also,
shareholders/owners of the company will share a proportionate capital worth of one
hundred thousand pesos (P100, 000.00) each.

Plant Construction

The estimated project cost amounts to P1, 000, 000.00. The owners of the corporation and the
general manager hired will sign a contract with building contractors to help in establishing the
plant. In addition, they are the one who will make sure that the manufacturing plant is built in the
expected date and within proper structure.
Management during the Operating Period

Organizational Chart

The figure and table shown on the next page presents the organizational chart of the
management flow as well as the functions of each unit involved in the business.

Owners/Shareholders

General Manager

Operation/Production Sales and Distribution Safety and Security

Financial Head
Head Head Officer

Growers/Workers Driver

The duties and responsibilities of the following employees are enumerated below.

Position Duties and Responsibilities

Owners/Shareholders
General Manager
 Share a proportional amount of capital and liable for any legal
problems and business issues.
 Oversees all of the departments as well as the day-to-day
operations of the business.
 Responsible for effective planning, organizing, leading and
controlling of the overall decisions to achieve set goals and
objectives of the organization.
Financial Head  They have to devise and set up a quarterly/annual budget
and fiscal plan, and present it in all heads of the departments.
 Assures that the financial statements are maintained along
with the complete work.
Operation/Production  The responsibilities of a production head involve the ff.
Head (Quality Control) process: planning and operating production systems and
subsystems.
 It also includes quality assurance, materials management,
and implementing health and safety procedures.
 Supervises the farm workers.
Sales and Distribution  In charge of preparation and deliveries of product orders from
Head production site to the proper delivery place of the client.
 Responsible in monitoring and keeping track of all products
being distributed.
 Responsible in establishing and maintaining best marketing
practices and strategies that meets the company’s objectives
and goals.
 In charge with profitability and sales reporting, and pricing
strategies.
Security and Safety  Monitor company’s property and maintain a safe and secure
Officer environment
 Watch for signs of crime or disorder; investigate disturbances
 Act lawfully at all times in direct defense of life or property
 Patrol premises randomly and regularly, including buildings
and perimeter
 Report any suspicious/unusual occurrences to authorities and
management
The following requirements and qualifications must be met by the Metro Mushroom Growers
Corporation employees:

Position Job Qualifications

General Manager  Must acquire level 3 skills and knowledge

Bookkeeper  Must be a graduate of either BS Accountancy or Bachelor of Science

in Business Administration Major in Banking and Finance
Operation/Production
Head (Quality
 Must acquire level 2 skills and knowledge
Controller)

Sales Distribution  Must be a graduate of any sales related course

Head  Good communication skills

Marketing Head  Must be a graduate of Bachelor of Science in Business

Administration Major in Marketing Management
Mushroom Grower  Must acquire level 1 skills and knowledge

Delivery Driver  Must have a valid driver’s license

 Must be knowledgeable on conducting repairs on the vehicle
 At least 2 years working experience
 Candidate must possess at least High School Diploma
Security and Safety  At least high school or college graduate
Officer  Significant work experience as a security guard or other relevant
position
 Thorough training and current certification or security officer diploma
required

Mushroom growers must be skilled in Mushroom Production. They are required to have
an intensive knowledge in proper sanitary for waste disposals, including maintenance to
properly manage the mushroom growing area. More so, employees for level 2 and 3 positions
must have at least 2 years working experience. The Level should be followed and evaluated by
the owners and manager based on the current skills and responsibilities they possess.
  Level 1 - must be knowledgeable in basic mushroom production
a. Tissue culture isolation as starter propagation
b. Grain spawn production (mushroom seeds)
c. Bag cultivation (fruiting bag production)
d. Growing house management
e. Sanitation warehouse

 Level 2 - must be knowledgeable in modified from basic mushroom production

a. Machineries operation
b. Business expert/ consultant
c. Microbiology analyst (quality control)

 Level 3 - must be knowledgeable in higher mushroom consultancy

a. Senior Science research specialist
b. Engineers
c. Executive Management

No. of employees needed Position Monthly Salary Annual Salary

1 General Manager 24,397.83 292,774

1 Financial Head 24,572.92 294,875

1 Operation/Production Head 15,650.17 187,802

(Quality Control Inspector)

1 Sales and Distribution Head 23,513.42 282,161

1 Delivery Driver 11,983.75 143,805

3 Grower/Worker 12,000 144,000

1 Safety and Security Officer 20,000 240,000

Source. Payscale.com

Compensation (DOLE) Government Mandates

A. SSS Benefits
B. PAG-IBIG
C. PhilHealth
D. 13th Month Pay
E. Withholding Taxes
Complementary incentives from the company

A. Overtime/Night Differential Pay

B. Sick Leave and Vacation Leave
C. Uniform
D. Awards and certificates through seminar (workshop)

Compensation Schedule

PAYROLL SCHEDULE
CONTRIBUTION (DEDUCTION) TOTAL MONTHLY TOTAL ANNUAL TAXABLE NET PAY NET PAY
2019-2021 TAX DUE
COMPENSATION SSS PHILHEALTH PAGIBIG CONTRIBUTION CONTRIBUTION INCOME AFTER TAX (MONTHLY)
NO OF
EMPLOYEES POSITION MONTHLY ANNUAL EE ER EE ER EE ER EE ER EE ER
NEEDED
1 General Manager 24,397.83 292,773.96 581.30 1,178.70 335.47 335.47 100.00 100.00 1,016.77 1,614.17 12,201.24 19,370.04 280,572.72 7,643.18 272,929.54 22,744.13
1 Financial Head 24,573.00 294,876.00 581.30 1,178.70 337.88 337.88 100.00 100.00 1,019.18 1,616.58 12,230.15 19,398.95 282,645.86 8,161.46 274,484.39 22,873.70
Operation/Production
1 Head (Quality Control 15,650.17 187,802.04 563.20 1,141.80 215.19 215.19 100.00 100.00 878.39 1,456.99 10,540.68 17,483.88 177,261.36 0.00 177,261.36 14,771.78
Inspector)

1 Marketing Head 23,513.00 282,156.00 581.30 1,178.70 323.30 323.30 100.00 100.00 1,004.60 1,602.00 12,055.25 19,224.05 270,100.76 5,025.19 265,075.57 22,089.63

1 Delivery Driver 11,984.00 143,808.00 436.00 884.00 164.78 164.78 100.00 100.00 700.78 1,148.78 8,409.36 13,785.36 135,398.64 0.00 135,398.64 11,283.22
Grower/Worker 12,000.00 144,000.00 436.00 884.00 165.00 165.00 100.00 100.00 701.00 1,149.00 8,412.00 13,788.00 135,588.00 0.00 135,588.00 11,299.00
3 Grower/Worker 12,000.00 144,000.00 436.00 884.00 165.00 165.00 100.00 100.00 701.00 1,149.00 8,412.00 13,788.00 135,588.00 0.00 135,588.00 11,299.00
Grower/Worker 12,000.00 144,000.00 436.00 884.00 165.00 165.00 100.00 100.00 701.00 1,149.00 8,412.00 13,788.00 135,588.00 0.00 135,588.00 11,299.00
1 Security Officer 20,000.00 240,000.00 581.30 1,178.70 275.00 275.00 100.00 100.00 956.30 1,553.70 11,475.60 18,644.40 228,524.40 0.00 228,524.40 19,043.70

TOTAL 9 156,118.00 1,873,416.00 4,632.40 9,392.60 2,146.62 2,146.62 900.00 900.00 7,679.02 12,439.22 92,148.27 149,270.67 ########## 20,829.83 1,760,437.90 146,703.16

 This includes the position of the employees, basic monthly salary, basic annual salary,
total annual salary, the necessary monthly deductions such as SSS, Philhealth, Pag-
IBIG contributions and their respective annual contributions, 13th month pay and
computed withholding taxes.
 The monthly Phil Health premium contributions shall be at the rate of 2.75% computed
straight based on the monthly basic salary, with a salary floor of P10,000 and a ceiling of
P40,000, to be equally shared by the employees and employer.
 The monthly contributions are based on the compensation of members. The current SSS
contribution rate is 11% of the monthly salary credit not exceeding P16, 000 and this is
being shared by the employer (7.37%) and the employee (3.63%).
 Those earning an annual salary of P250, 000 or below will no longer pay income tax.
 Technical Aspect

Product properties

The Metro Mushroom Growers Corp. primarily offers local fresh white oyster mushroom.
The brand name of the product is Bunchshrooms which is a combined name of bunch and
mushrooms. “Bunch” which means a group of things that are held together and “shrooms” for
mushrooms.

White oyster mushroom (Pluerotus florida) is an edible mushroom having a cap, which
resembles an oyster shell. Considered as vegetable, and it is now known that mushrooms
presently rank above all vegetable and legumes (except soybean) and it is commonly eaten by
Asian nationalities. Normally, it is served in soups, stuffed, or stir-fries recipes with soy sauce. It
can also be made into products such as noodles, empanada, tempura, siomai and shingaling.
They are often considered to provide a fair substitute for meat; with at least a comparable
nutritional value to many vegetables the consumption of mushroom can make a valuable
addition to the often unbalanced diet of people in developing countries. It is also best when
harvested young, as the mushrooms aged the bodies becomes unpleasant.

White oyster mushroom has nutritional value such as protein 2 to 5% of their fresh
weight 19.35% of dry weight, amino acids that contains 9 essential amino acids for body health,
Vitamins B-complex, pro-vitamin D2 and vitamin C, mineral 56-70% of ash content, Fiber 7.4-
27.6%, Nucleic Acid 4.0% -from fresh only and even folic acid. It has anti-bacterial and good
anti-oxidant properties which fights diseases and boost the immune system. Likewise, it is low in
calories and fat-free.

The Metro Mushroom Growers Corp. will offer Bunchshrooms white oyster mushroom
which are right after from harvest will be packed per 80 grams weight in accurate packaging that
will keep its freshness- Styrofoam tray with stretchable film plastic and bind per dozen. The
Metro Mushroom Growers Corp. will assure that the products will be distributed in expected
quality and measurement. The firm’s structure will have proper placement of every station of
production and has standard separate mushroom growing area that will be guaranteed the
mushrooms are free from contaminants. Corporation will be providing fixed number of produced
mushroom that will sustain its customers. The company will distribute its products along areas
near to its location. This will make sure the product will arrive on time to its distribution channel.
Manufacturing Process

Grain Spawn Preparation

The basic material in grains spawn is sorghum and or any cereal seeds. Wash grains
thoroughly and discard all floated seeds. Boil for at least 20-25 minutes. Collect seeds using
strainer to drain the water and spread out on newspaper or Manila paper to absorb excess
water. Transfer the boiled grains in round bottle plug with cotton waste and cover with clean
paper. Sterilize the bottled grains at 15 psi for one hour. Cool down. When cooled, pure culture
stubs of chosen mushroom specie will be inoculated in the sterilized bottled grains. Incubate for
14 days. This serves as grain spawn. Use the grain spawn to inoculate sterilized fruiting bags.

Preparation of substrates and fruiting bags

Mixing and fermentation of substrate materials, formulation is based on general

recommendation. Combine rice bran (20%) sugar or molasses (1%), lime (1%), to sawdust
(78%). Moisten and pile into heap materials every 2-3 days for 15-21 days. However, if old
sawdust and stored under open space is to be used, fermentation is no longer needed.

Filling the bags, use plastic bags of 6x12 inches polypropylene plastic (PP) bags size 0.2 or 0.3
mm. fill 1 kg of fermented substrate materials in the pp bags and then compress. Then put PVC
pipe neck (1 inch diameter) plug with cotton waste, cover with clean paper or plastic cap to
minimize entry of water during steaming or pasteurization.

Pasteurization or steaming

Sterilize the bags in an autoclave for 1 and ½ hours at 15 psi.

Inoculating the bags

Inoculate each bag with the grain spawn bottle to loosen the grains, remove the plug and flame
the mouth of the bottle and pour some grains into the bags. Slightly shake the neck area of
newly inoculated bags to distribute evenly the grains in the shoulder area of the bags.
Incubation

Keep the spawned bags in a dry and ventilated room for at least 30-45 days. If within five days
of incubation and no growth appears, the spawn is dead or the substrate is too dry. The bag
could be contaminated with other microorganisms. Mycelium will fill the bags in 20-30 days,
which means the bags are ready to fruit initiation. Open the bags 1-2 weeks after the bag is
totally covered with mycelium. This is to make sure that the mycelium is matured enough to fruit.
Inoculated bags could be pile and incubate directly in a growing house provided the house will
remain dry to obtain the required incubation time.

Fruiting and its requirement

Fruiting requires a temperature not more than 28’c, ventilation, light, and relative humidity (80-
85%). Provide moisture by watering the mushroom house daily. Do not water directly on bags
opening. To lower the temperature and hasten fruiting, spray the house frequently if the
temperature is more than 28’c provide air ventilation at lower and upper part of walls but
secured with insect net to prevent entry of insects.

INCUBATION PERIOD
Type of Mushroom Incubation Time Mushroom Production Time
(Weeks) Flushes (weeks)
1st 5
2nd 8
White Oyster 4 3rd 11
Mushroom 4th 14
5th 17

The Metro Mushroom Growers Corporation replaces the raw materials for production of
white oyster mushroom three every four months which is (3) times a year.
 Machinery

ITEM IMAGE USAGE QUANTITY UNIT TOTAL

PRICE

AUTOCLAVE For sterilizing fruiting

bags 36,000 36,000
1

For transfer of tissues

and other tissues
INOCULATION culture work and use
CHMABER as a dry-box and by 1 31,000 31,000
dust proof bacteria
free clean
uncontaminated
environmental
enclosure.

The Metro Mushroom Growers Corp. used only two machines, the autoclave and the inoculation
chamber. The autoclave is used for sterilizing the fruiting bags for 1 and ½ hours for the
purpose of getting rid of any microorganisms or their spores. The inoculation chamber on the
other hand is used for transferring tissues and other tissues culture work and will be used as a
dry-box and by dust proof bacteria free clean uncontaminated environmental enclosure.

The Corporation has its own maintenance for the machines to function properly. The
maintenance checks it three (3) times a year. The corporation have warrantee of bought
machine for 3 years according to the suppliers. The machine we bought from that company is
reliable because it’s a well-known market place and has a good review from their buyers.

The Metro Mushroom Growers Corp staff inquired personally to the machine’s company to
ensure that the machine is on good quality for the purpose of not contaminating the process of
making a mushroom. The payment method that the Corporation used to buy machines is cash
on hand.
Raw materials for 3000 fruiting bags of white oyster mushroom

ITEM MAN-DAYS AMOUNT

B.MATERIAL COST QUANTITY UNIT PRICE AMOUNT
Pp plastic bags 30 packs 200.00 6,000.00
PVC pipe 84 tubes 300.00 7,200.00
Cotton (300 g) 30 rolls 100.00 3000.00
Denatured alcohol 6 bottle 70.00 420.00
Rubber band 3 kg 50.00 300.00
Ethyl alcohol 6 bottles 50.00 300.00
Grain spawn 120 bottles (catsup) 60.00 7,200.00
Sawdust 12 bags (20kg/bag) 25.00 300.00
Rice bran 12 kg 15.00 180.00
Apog or Lime 30kg 70.00 420.00
Brown sugar 30kg 80.00 480.00
Polypropylene plastic 12 roll/300 meter 400.00 4,800.00
(PP BAGS)
Styrofoam tray 22,500 0,96 10,800.00
Sub-total 41,400.00

Furniture and fixtures

Equipment Acquisition Cost Serviceable year Depreciation cost

Knapsack sprayer 3,000.00 6 years 450.00
Kitchen weighing
scale
1,000.00 6 years 150.00
Kitchen scissor 150.00 3 years 45.00
Trays 1,500.00 6 years 225.00
Air conditioner 19,190.00 15 years 1151.4
Computer set 5,990.00 5 years 1078.2
LED Fluorescent light
3000.00 5 years 540.00
Desk with mobile
pedestal 5,599.00 6 years 839.85
Mono block chair 520.00 3 years 156
Ofiice cabinet 6,999.00 7 years 899.87
Swivel chair 2,999.00 3 years 899.7
Sub-total 47,247.00 6435.1
Plant Location and Plant Layout

Site Description

The plant location shall be located at Katipunan Ave. Extension, Brgy. Nagkaisang Nayon
Novaliches Quezon City, Metro Manila. The rental amount of the said lot and are is worth fifteen
thousand pesos (P15, 000) per month. The proponents chose the location because they
observed that there are many potential buyers in the area. Aside from that, markets are near in
the production of the business.

Vicinity Map
 Plant layout

The plant size of Metro Mushrooms Growers is approximately 200 square meters and is divided
into eleven (11) facility rooms. The plant layout is ideally designed to provide suitable
environmental conditions for mushrooms.
 Front Layout

Waste disposal

The waste of Metro Mushroom Growers will be minimal as they use trash bins inside their
offices. They also use different trash bags in the production area for segregation. Since the
plant location is near in the village, garbage collectors are expected to collect wastes three (3)
times a week.
Process of registering the Metro Mushroom Growers Corporation

1. Undergo in-depth hands-on mushroom training in BPI (Bureau of Plant Industry) and
DA-RFO’s (Department of Agriculture)
 Registering in DTI (Department of Trade and Industry)
 Product development training in DTI
2. Reserve and register business name in SEC (Security and Exchange Commission)
 Visit SEC website or make a personal appearance at their office in Mandaluyong.
 Complete and sign all required documents: Articles of Incorporation, By-Laws, Treasurer
Q’s Affidavit, Joint Affidavit of Two Incorporators. All documents need to be notarized
(more on this below).
3. Acquire Barangay Clearance
 Visit the Barangay where your business is located and request for clearance.
 Submit the following together with your Barangay clearance: Certificate of Business
Registration from SEC, Two (2) Valid IDs, Proof of Address (Contract of Lease or
Certificate of Land Title)
4. Acquire Business Permit from Mayor’s Office
 Visit the municipal office where your business is located and request for a business
permit form.

 Submit the following together with your completed Business Permit: Certificate of
Business Registration from SEC, Two (2) Valid IDs, Proof of Address (Contract of Lease
or Certificate of Land Title), Barangay Clearance.

5. Register with BIR (Bureau of Internal Revenue)

 Visit the Regional District Office that covers your business location
 Request for a copy of BIR Form 1903 — Application for Registration of Partnership or
Corporation
 Submit the following together with your completed Business Permit: Certificate of
Business Registration from SEC, Two (2) Valid IDs, Proof of Address (Contract of Lease
or Certificate of Land Title), Barangay Clearance, Business Permit from Mayor’s office
 Pay all applicable fees and register your book of accounts and receipts
 Claim your Certificate of Registration
Full List of Requirements & Documents needed for SEC

The incorporation process is lodged with the Securities & Exchange Commission (SEC).

The following requirements/documents must be submitted with the SEC:

1. Name Reservation/Verification Slip

2. Cover Sheet
3. Articles of Incorporation
4. Corporate By-laws
5. Registration Data Sheet
6. Registration Data Sheet (CAPITAL STOCK / INCORPORATORS /DIRECTORS /
OFFICERS INFORMATION)
7. Affidavit of Undertaking to Change Corporate Name
8. Treasurer’s Affidavit stating the amount of the shares of stock subscribed and the
amount of the subscription price which has been paid-in to him as Treasurer-in-Trust of
the proposed corporation. He should likewise certify that at least twenty-five percent
(25%) of the authorized capital stock has been subscribed, and at least twenty-five
percent (25%) of the amount subscribed has been paid-in to him for the benefit and to
the credit of the corporation.
9. Bank Certificate

Anent the documents, the following information must be supplied to adequately fill out the
necessary documents for submission with the SEC:

1. Corporate Name (The last part must end with Inc., Incorporated, Corporation or Corp.)
2. Purpose of the Corporation
3. Address of the Corporation
4. Telephone Number
5. Value of each share (This is usually P100.00 for 1 share)
6. Authorized capital (Total number of shares of the Corporation)
7. Subscribed capital (Number of shares to be subscribed by the incorporators. This cannot
be less than 25% of the authorized capital)
8. Paid-up capital (Number of shares paid by the incorporators. This cannot be less than
25% of the paid-up capital)
9. Name and Branch of Bank where the paid-up capital amount will be deposited
10. Incorporators (Name, nationality, address, birthday, Tax Identification Number,
Community Tax Certificate Number or Passport Number)
11. Shares of the Incorporators (number of subscribed shares, number of shares paid and
percentage of ownership)
12. Number of Directors and their names (Must be an incorporator. Not less than 5 and not
more than 15 directors)
13. Name of the Chairman of the Board
14. Name of President
15. Name of Corporate Secretary
16. Name of Treasurer
17. Term of the Corporation
18. Date of annual meeting of the corporation
19. Accounting Year (Calendar Year or Fiscal Year. Calendar Year is recommended since
this is used by most government agencies)
 MARKETING ASPECT

This part will discuss the different marketing aspects of the proposed mushroom
business to identify the suitable strategies that will make it effective in the future.

The project team conducted a careful research and survey for the demand and supply of
the products, competition comparison regarding business competencies, marketing programs
and promotion of products in the target market, suitable location for the business and place of
distribution, and the pricing strategies for the proposed product of the business. These are
prepared by the team to know the cycle in the industry and acquire important information that
will help the business grow exponentially.

OBJECTIVE

 The main objective of this chapter is to identify the ideal marketing strategies and
techniques as regards to pricing and product positioning that will be applied in the
business for it to grow within its scope.
 To show the demand and supply of the products in the market based on the
respondents’ answer to the conducted survey.
 To forecast the struggle of promoting and distributing the proposed product to be offered
by the business.
 To predict the expected sales of the business and;
 To determine the strength and weaknesses of the competitors that will be put as a basis
to prosper the business.
 DEMAND AND SUPPLY ANALYSIS

Oyster mushroom is recently introduced to all farmers. Thus, these products are not
common to people or in the market. According to our survey to all respondents, they sell their
products in Dry Market. Some are in their respective communities. The Metro Mushroom
Growers Corp. is planning to supply Bunchshrooms in some parts of District 5 in Quezon City
particularly in five (5) Barangays which are the following: Nagkaisang Nayon, Novaliches
Proper, Gulod, Sta. Lucia, and North Fairview.

Based on the initial information gathered on the official website of Philippine Statistics
Authority (PSA), the population is estimated 198,725 people in five Barangay, District 5, Quezon
City. This will be very useful in analyzing data through its illustrative computations and tables
that are understandable to everyone.

Table 1
HISTORICAL DEMAND
%
Population Population Population Population Total who
Year Population of of of Gulod of Sta. of North Population wants Demand
NagkaisangNayon Novaliches Lucia Fairview to
Proper avail
14089 49114 23572 37928 169906
2013 45203 67.8 115196.27

14676 51192 24554 39508 177016

2014 47086 69.2 122495.07

15381 53325 25577 41151 184482

2015 49048 70.6 130244.29

15996 55458 26600 42800 192845

2016 51991 72 138848.40

16636 57676 27664 44512 198725

2017 52,237 73.4 145864.15

Source: psa.gov.ph
Growth rate: 1.04%

Take the actual demand for the year (2017) 145864

Less: the demand for the fifth year (2013) 115196
The difference is: 30667.88 / 4 7667
 Table 2
PROJECTED DEMAND FOR THE NEXT 5 YEARS (2018-2022)
Year A Yi - 1 Yc
2018 7666.97 145864 153531
2019 7666.97 153531 161198
2020 7666.97 161198 168865
2021 7666.97 168865 176532
2022 7666.97 176532 184199

The projected values is determined using arithmetic and straight line method
Where:
Yc= Projected Demand
A = annual increase
Yi-1 = Value of the current year

Table 3
HISTORICAL SUPPLY
Year Total Supply

2013 37,978
2014 38,377

2015 38,780
2016 39188

2017 39,600

Source: Based on the survey questionnaire, customers preferred an average of22 kilos, 34% of
the number of respondents was preferred20 above kilos which means they bought estimated
39,600 kilos per annum of each barangay (22x5x30x12), with an annual growth rate of 1.04%
this growth rate is based on the population’s growth per year percentage.

Take the actual supply for the year (2017) 39600

Less: the supply for the fifth year (2013) 37978
The difference is: 1622/ 4 406
 Table 4

PROJECTED SUPPLY FOR THE NEXT 5 YEARS (2018-2022)

Year A Yi - 1 Yc
2018 406 39,600 40,006
2019 406 40,006 40,412
2020 406 40,412 40,818
2021 406 40,818 41,224
2022 406 41,224 41,630

Where:
Yc= Projected Supply
A = annual increase
Yi-1 = Value of the current year

Table 5

DEMAND AND SUPPLY ANALYSIS

Year Demand Supply Unsatisfied Percentage

Demand

2018 153531 40,006 113525 73.94

2019 161198 40,412 120786 74.93

2020 168865 40,818 128047 75.83

2021 176532 41,224 135308 76.65

2022 184199 41,630 142569 77.40

The computation of projected unsatisfied demand is the difference of projected demand and
supply
 Table 6

COMPETITORS MARKET SHARE

Year Demand Supply Total Competitors Share

2018 153531 40,006 26.06

2019 161198 40,412 25.07
2020 168865 40,818 24.17
2021 176532 41,224 23.35
2022 184199 41,630 22.60

The table above shows the competitors market share for the next 5 years.

Table 7

METRO MUSHROOM GROWERS MARKET SHARE

Year Demand Gap Percentage Market Share

2018 113525 26.06 29585

2019 120786 25.07 30281
2020 128047 24.17 30949
2021 135308 23.35 31594
2022 142569 22.60 32221

The projected number of market share of Metro Mushroom Growers is based from the
unsatisfied demand (113,525) multiply by the percentage of the competitor share (26.06%) in
order to get the market share of metro spore growers (29,585) for 2018.
 Table 8

SELECTED BARANGAY

Name of Barangay No. of Population (%) No. of Respondents

NagkaisangNayon 52,237 101 (26.28%)

Novaliches Bayan Proper 16,636 32 (8.40%)

Gulod 57,676 111 (29.02%)
Santa Lucia 27,664 54 (14%)
North Fairview 44,512 86 (22.40%)

Slovin’s Formula

-This formula is used to calculate an appropriate sample size from a population.

𝑁
n≥ Where:
1+𝑁𝑒 2

N = population (198,725)

n≥ n = sample
1+( )(0.05)2

e = desired margin of error (0.05)

n≥

n≥

n ≥ 384 Respondents

A survey was once performed and used in figuring out the desired and wants of
the target market regarding the product. Questionnaires were distributed to determine
the measure of responses. Data were presented in table form to show the behavioral or
the respondents about their perspective in the services.
Demographic Profile of the respondents

Table 9
Age of the Respondents

Age Bracket No. of Respondents Percentage

18-24 years old 69 18%

25-31 years old 96 25%

32-38 years old 77 20%

39-45 years old 88 23%

46-52 years old 31 8%

53 and above 23 6%

TOTAL 384 100%

The results shows that majority of the respondents consisting of 25% (96) are 25-31
years old, followed by 39-45 years old which is 23% (88), 32-38 years old which is 20%
(77), 18-24 years old which is 18% (69), 46-52 years old which is 8% (31), and 53 and
above which is composed of 6% (23) of the total number of respondents.

Table 10

Gender of the Respondents

Gender Number of Respondents Percentage

Female 223 58%

Male 161 42%

TOTAL 384 100%

Results show that 58% (223) of the respondents are female and 42% (161) are male.
 Table 11
Civil Status of the respondents

Civil Status Frequency Percentage

Single 108 28%

Married 242 63%

Widowed 15 4%

Separated 19 5%

TOTAL 384 100%

Results shows that majority of the respondents consisting of 63% (242) are Married,
followed by the Single which is 28% (108), Separated which is 5% (19), and the
Widowed which is composed of 4% (15) of the total number of respondents.

Table 12
Number of respondents who are interested to buy mushrooms
Number of Percentage
Respondents

YES 246 64%

NO 138 34%

TOTAL 384 100%

Results shows that 64% (246) of the respondents was interested to buy the mushrooms and
34% (138) of the respondents do not interested to buy mushrooms.
 Table 13
Number of respondents who buy the following mushrooms
Number of Percentage
Type of Mushrooms Respondents

Oyster Mushroom 115 30%

Shiitake Mushroom 84 22%

Pearl Mushroom 69 18%

Wood Ear Mushroom 24 6%

Buttom Mushroom 92 24%

TOTAL 384 100%

Results shows that 30% (115) buy Oyster Mushroom, 22% (84) buy Shiitake Mushroom, 18%
(69) buy Pearl Mushroom, 6% (24) buy Wood Ear Mushroom, and 24% (92) buy Buttom
Mushroom.

Table 14
Kilos of mushrooms respondents would buy
Number of Percentage
Kilos of Mushrooms Respondents

1 - 10 Kilos 58 15%

11 - 15 Kilos 88 23%

16 - 20 Kilos 108 28%

20 Kilos and above 130 34%

TOTAL 384 100%

Results show that 130 of the respondents or 34% chose 20 kilos and above as their desired
kilos and 16-20 kilos has been chosen by 108 respondents or 28% and 11-15 kilos chosen by
88 respondents or 23% and 58 of the respondents or 15% chose 1-10 kilos of mushrooms.
Domestic Transportation Cost

Annual Gasoline, Oil and Lubricant, Repairs and Maintenance

Unit Cost
Expenses Sources Consumption Total (Php)
(Php)
Gasoline Shell/Petron/Caltex 42/liter 600 liters 25,200
Oil and DEECO Hardware
500/month 12 mos. 6,000
Lubricants Supply
Total 31,200

Prices to be adopted by the project

Projected Sales Income

Mushroom Production Time Total Price per Total Sales

Number package
Flushes (weeks) Of Package
Per Flushes
1st 5 4,500 20 90,000

2nd 8 4,500 20 90,000

3rd 11 4,500 20 90,000

4th 14 4,500 20 90,000

5th 17 4,500 20 90,000

6th 22 4,500 20 90,000

7th 25 4,500 20 90,000

8th 28 4,500 20 90,000`

9th 31 4,500 20 90,000

10th 34 4,500 20 90,000

11th 39 4,500 20 90,000

12th 42 4,500 20 90,000

13th 45 4,500 20 90,000

14th 48 4,500 20 90,000

15th 51 4,500 20 90,000

TOTAL 1(YEAR) 67,500 P20 P1,350,000

 Projected Sales Income for the next 3 years

Total Grams per Price per Total

Styrofoam Total Package Sales
grams Total grams
80g packs P2
Year produce Number of produce X Total produced increasing
fruiting bags per year
per fruiting fruiting bags
used
bag used =

2019 1,800g 3,000 5,400,000g 80g 67,500 P20 P1,350,000

2020 1,800g 4,000 7,200,000g 80g 90,000 P22 P1,980,000
2021 1,800g 5,000 9,000,000g 80g 112,500 P24 P2,700,000

Projected Sales Volume

Estimated Production
Mushroom Production Number of oyster Total Weights Total
Flushes Time produces (grams) number of per Number
(weeks) Multiply to 1000 Oyster Package Of Package
Fruity bags Mushrooms (grams) Per Flushes
(grams)
1st 5 120x3000 360,000g 80 4,500
2nd 8 120x3000 360,000g 80 4,500
3rd 11 120x3000 360,000g 80 4,500
4th 14 120x3000 360,000g 80 4,500
5th 17 120x3000 360,000g 80 4,500

4 months 600x3000 1,800,000 80 22,500

Mushroom Production Number of oyster Total Weights Total

Flushes Time produces (grams) number of per Number
(weeks) Multiply to 1500 Oyster Package Of Package
Fruity bags Mushrooms (grams) Per Flushes
(grams)
6th 22 120x3000 360,000 80 4,500
7th 25 120x3000 360,000 80 4,500
8th 28 120x3000 360,000 80 4,500
9th 31 120x3000 360,000 80 4,500
10th 34 120x3000 360,000 80 4,500

4 months 600x3000 1,800,000 80 22,500

Mushroom Production Number of oyster Total Weights Total
Flushes Time produces (grams) number of per Number
(weeks) Multiply to 2000 Oyster Package Of Package
Fruity bags Mushrooms (grams) Per Flushes
(grams)
11th 39 120x3000 360,000 80 4,500
12th 42 120x3000 360,000 80 4,500
13th 45 120x3000 360,000 80 4,500
14th 48 120x3000 360,000 80 4,500
15th 51 120x3000 360,000 80 4,500

4 months 600x3,000 1,800,000 80 22,500

Total 1 YEAR 1800x9000 5,400,000 80 67,500

Projected Sales Volume for the next 3 years

Year Total Number Number of Total number Weights per Total number
oyster Package
of fruiting bags of Oyster of package
produces per (grams)
fruity bags Mushrooms
(grams)
Produce
(grams)
2019 3000 1800g 5,400,000g 80 67,500
2020 4000 1800g 7,200,000g 80 90,000
2021 5000 1800g 9,000,000g 80 112,500
Competitors Background

Marketing Practices of Competitors

They have developed the 4P’s consistently.

1. Product

There are other mushroom growers and sellers who offer varieties such as
white/gray/pink and brown oyster mushrooms, ganoderma lucidum, and milky mushroom

Category A: the mushrooms included in this category in good size and color. Mostly the
oyster mushrooms with light brown color are included in this category and the size of the
flower is 5-7 inches.

Category B: the mushrooms included in this category are smaller in size than the A
category mushrooms. But some full size mushrooms were also included in this category
due to their color. The color of such mushrooms didn’t match the A category requirement
and thus they are included in this category

2. Price

They tried to capture higher market share so they set their prices at a level that
are affordable by their customers. As the price of canned mushroom is very high, so to
capture market, they reduce their price. Canned mushrooms are available in market with
huge prices depending upon the quality. So they set the prices according to their product
categories.

CATEGORY Price Per Kilogram

“A” Category P500
“B” Category P350
 3. Place

Competitors cater the high land vegetable retailers in local public market, restaurants
who serve mushroom dishes, grocery stores in malls, and some businesses who
process products that needed or made of mushroom. Most competitors are located in
provinces like Pampanga, Bulacan, Ilocos, and Laguna and some from Metro Manila.
Balintawak public market is where the competitors mainly place products.

4. Promotion

Competitors promote the nutritional benefits of mushroom as for promotional

strategy. Connecting in social media like Facebook, distributing brochures or flyers and
taking part in food festivals are the practices.

Competitive Comparison

JMP Mushroom Enterprise

Marketing Strategies Description

Product/Services The Company offers Oyster mushroom and Spawn of oyster mushroom.

Price Their Bottle ranges from 100.00 to 500.00 pesos it depends on classes.

Place The Company is located inside the FARMCHOICE AGRIBUSINESS

ENTERPRISE.

Promotion They conduct trainings and seminars to have a knowledge for mushroom
farming guide linked through social media like Facebook etc.
 Metro Mushroom Growers Corporation

Marketing Strategies Description

Product/Services Metro Mushroom Growers Corp. is offering a 100% Fresh White

Oyster Mushroom with a brand name called “Bunch-Shrooms” made
of high quality spawn materials.
Price The price of Metro Mushroom Growers is lower than the competitors
in the area.
Place The location of Metro Mushroom Growers Corporation is near a
populous place that has various potential buyers like public markets,
food stores, and merchandising businesses.
Promotion The Promotion of the company will be focusing on utilizing sales
promotional activities such as free 1 package of Bunchshrooms for
every purchase of 2 dozens.

Proposed Marketing Strategies of Metro Mushroom Growers Corporation

The business will give importance to their target markets especially their customers by
supplying good quality of products. Customers can talk to the staff especially if there are
problems arise in providing the products. The management shall address the problems right
away. The management must maintain good customer service in entertaining their requests and
concerns.

Distribution Channels

Nagkaisang
District 5 Fairview Novaliches Sta. Lucia Gulod
Nayon
Pricing Strategy

The current selling price of fresh white oyster mushrooms in the market ranges from
P150 to P400 depending on their sizes, weights and sources of supply. Metro Mushroom
Growers provides a single class of size which is packed in 80 grams of weight. The
management decides to provide a 1% increase in price annually.

CATEGORY WEIGHTS Price Per Piece

Bunchshrooms 80 grams P28

Strategic Location

The proposed project shall be placed in a good location wherein it is accessible to the
raw materials needed for oyster mushroom production. Moreover, the strategic location
of the company is very accessible to any means of transportation. The place is also
good for oyster mushrooms to grow because it is free from any possible contaminants
that might affect the growth of the oyster mushrooms. The place is surrounded with trees
that give cooling environment.

Promotional Strategies

With the supervision of marketing head, the promotional strategies will be prepared. To
promote the Metro Mushroom Corp.’s Bunchshrooms, the following practices will be
used:

A. Visiting public markets in Quezon City

Selected staffs will be assigned to go and inform the markets. These selected staffs will
be oriented to personally talk with the retailers of high land vegetable sellers about the
existence of Metro Mushroom Corp. and its product, fresh white oyster mushroom.
 B. Distributing of fliers for promotion
Along with visitation in public markets is the distribution of fliers. It is
mainly to advise the prospect buyers about the company’s opening
promo. There is 1 pack free for every purchase of 2 dozens. Including
on the flier are the company name, contact number and company
location.

C. Mushroom Chicharon free taste

The Metro Mushroom Growers Corp. will make chicharon from its
excess oyster mushroom and will freely give it to its customers after
the delivery of their order. This is to encourage the buyers to also
prepare their own chicharon made out of oyster mushroom and an
idea for these customers to make it as products in establishing small business.

D. Extending target market/market share

In the succeeding years, the company will be ready to add in their target markets some
businesses and restaurants who serve and offers oyster mushroom products. The product and
sales promotion team will conduct proposal and negotiations with these restaurants and
business in District 5, Quezon City

E. Participation on Trade Events

F. Social Media Marketing
G. Consignment Contract

CONSIGNMENT CONTRACT
This Consignment Agreement (the “Agreement”) states the terms and conditions that govern the
contractual agreement between METRO MUSHROOM GROWERS Corp., (the “Consignor”) who agree to
be bound by this Agreement.

WHEREAS, the Consignor owns right and title to the items described on Exhibit A attached hereto (the
“Consigned Items”), and the Consignee desires to take possession of the Consigned Items with the
intention of selling it to a third party.
NOW, THEREFORE, in consideration of the mutual covenants and promises made by the parties hereto,
the Consignor and the Consignee (individually, each a “Party” and collectively, the “Parties”) covenant
and agree as follows:

RIGHT TO SELL. The Consignor hereby grants to the Consignee the exclusive right to display and sell
the Consigned Items according to the terms and conditions of this Agreement.

MINIMUM PRICE. The minimum price at which the Consignee may sell the Consigned Items shall be ₱
______ (the “Minimum Price”). In the event the Consignee sells the Consigned Items for less than the
Minimum Price, the Consignor shall be entitled to the same payment the Consignor would receive as its
share of the sale price under this Agreement had the Consigned Items been sold for the Minimum
Amount.

INSURANCE. The Consignee represents and warrants that the Consignee shall maintain insurance
coverage sufficient to compensate the Consignor for the fair market value of the Consigned Items in the
event of damage due to fire, theft, or otherwise.

LOCATION OF ITEMS. The Consignee agrees and acknowledges that the Consigned Items shall only be
kept and stored at the Mushroom Warehouse unless otherwise agreed upon by the Consignor in writing.

EXPENSES. The Consignee shall bear all expenses for shipping the Consigned Items.

IN WITNESS WHEREOF, each of the Parties has executed this Contract, both Parties by its duly
authorized officer, as of the day and year set forth below.

METRO MUSHROOM GROWERS Corp.

_________________________________ ______________
[NAME] DATE

[CONSIGNEE]

_________________________________ ______________
[NAME] DATE

Target Clients

All staff and personnel will always be oriented the proper protocol of taking care our customers.
The personnel are expected to be friendly, approachable, hardworking and courteous in
entertaining the target customers even with their co-workers.
Process

The Metro Mushroom Growers Corp. will always consider the quality control for an efficient and
effective process in producing oyster mushrooms. The management shall ask assistance in
Department of Science and Technology to ensure the desired outcome of the processes. Also,
quality control in production area must be observed.

Packaging

A good packaging for the products will be used at the same time to ensure the best quality of
the products. The management shall ask advices from Department of Science and technology
on what would be the best packaging design to ensure the quality, cleanliness and freshness of
the product.