Section I

MARKETING FEASIBILITY

This section show the product description, target market, projected demand, supply
analysis, demand and supply gap, sales forecast, marketing program that includes the product,
price, place and promotion

PRODUCT DESCRIPTION

The proposed product, “Longganisa” is a sausage traditionaly made with ground pork
together with spices and herbs to make it flavorful.

The proposed product consists of 2 types of longganisa; Skinless Longganisa is a

pinkish colored sausage which is wrapped in an ice candy plastic or wax paper. It has greasy
texture due to the excess oil of the ground pork’s fats. Its sweet, garlicky flavor and smells sums
up the longganisa. It is best partnered with steamed rice. On the other hand, Steamed
Longganisa smells and tastes almost the same since most of the ingredients are the same. The
steamed longganisa has an orange color which is wrapped in a pork’s small intestine. It is being
smoked in a smoke house using charcoal which gives an intense smokey smell and flavor to the
sausage.

HISTORICAL DATA

The proposed business is located at Barangay Sagpon, Daraga. The population count of
the area for past three years was gathered in Sagpon Barangay Hall.

TABLE 1

HISTORICAL DATA

YEAR POPULATION

2015 6,580
2016 6,464
2017 6,673
Source: Sagpon Barangay Hall and Philippines Statistics Authority

Table 1 shows the population count of Barangay Sagpon as of 2015 to 2017

TARGET MARKET

The target market of the business is household, boarders, and office employees. It has
potential frequent customers since it’s located near offices, houses, and school.

Table 2

TARGET MARKET

TARGET MARKET POPULATION

Households 1,628

Boarders 300

Office Employees 18

Total: 1,946
Source: Sagpon Barangay Hall

Table 2 shows the population of Barangay Sagpon, the household has a total population of
1,628. The Boarders has a total of 300. The Office Employees has a population of 18. The total
population of Barangay Sagpon is 1,946 as of 2018.

DEMAND ANALYSIS

The demand for the product is one of the bases in determining the success of the

business. To determine the demand for the product, the proponent analyses the consumption

requirements of the target market.

TABLE 3
Projected demand
YEAR Population Willingness to Frequency Projected
buy demand
2018 6,712 5,034 144 Php 724,896.00
2019 6,846 5,134 144 739,296.00
2020 6,982 5,236 144 753,296.00
Total Php 2,218,176.00
Table 3 is computed as, in getting the total demand for the year 2018, 6,712 was multiplied by
75% (which is the percentage of the total of customers that answer the survey questions),
multiply by 144 (which is from 6x4x12 where 6 is equal to daily, the highest answer in the survey
question).in getting the population for 2019, 6,846 was added to 217 (population x percentage
of population growth which is 3%)

SALES FORECAST

The proponents determined the forecasted sales of the business, the quantity and the
average price of the product. This shows the projected sales, daily, weekly, and annually sales
by multiplying the selling price of the product and that is shown on table.

TABLE 4
SALES FORECAST
Selling
Product Quantity Daily Sales Weekly Monthly Annually
Price
Skinless
16 kilos Php 200 Php 3,200 Php 9,600 Php 38,400 Php 460,800
Longganisa
Smoked
17 kilos Php 200 Php 3,400 Php 10,200 Php 40,800 Php 489,600
Longganisa

TOTAL 33 kilos Php 400 Php 6,600 Php 19,800 Php 79,200 Php 950,400

The table shows the daily, weekly, monthly, and yearly sales of the product computed as the
quantity multiplied to the selling price of Longganisa, for example 200 x 16 = 3,200 The weekly
sales are computed by multiplying the daily sales by 3, which is the total days the business is
going to cook in a week. The monthly sales are computed by multiplying the weekly sales by 4,
which is the total weeks in a month. The annual sales are computed by multiplying the monthly
sales to 12, which is the number of months in a year.

MARKETING PROGRAM

The marketing program represents the four P’s of marketing: Product, Price, Place, and

Promotion that are vital for the success of the proposed business venture.

PRODUCT

The proposed product consists of 2 types of longganisa; Skinless Longganisa is a pinkish

colored sausage which is wrapped in an ice candy plastic or wax paper. It has greasy texture
due to the excess oil of the ground pork’s fats. Its sweet, garlicky flavor and smells sums up the

longganisa. It is best partnered with steamed rice. On the other hand, Steamed Longganisa

smells and tastes almost the same since most of the ingredients are the same. The steamed

longganisa has an orange color which is wrapped in a pork’s small intestine. It is being smoked

in a smoke house using charcoal which gives an intense smokey smell and flavor to the

sausage.

PRICE

This “Longganisa” offers a very affordable price to customers. The target markets of the

proposed business are the household and office workers around United Institute. The business

offers budget friendly prices for them to afford Marahay’s Longganisa. This also contains the

breakdown of the ingredients as well as its price.

TABLE 5

PRICE

PRODUCT PRICE(per kilo)

Skinless Longganisa Php 200

Smoked Longganisa Php 200

Table 5 shows the pricing of each product per kilo

 TABLE 6

COSTING

SKINLESS LONGGANISA SMOKED LONGGANISA

PRODUCT PRICE PRODUCT PRICE

Php 144.00 (48 per

3kls of brown sugar 3kls of brown sugar Php 144.00
kilo)

¼ kilos of garlic 25.00 (100 per kilo) ¼ kilos of garlic 25.00

5 tbs. of black ground 5 tbs. of black ground

6.00 6.00
pepper pepper

7 tbs of vetsin 6.00 7 tbs of vetsin 6.00

200g of rock salt 4.00 1kl of Skim Milk 190.00

125g of Orange Food

1 bottle of A1 150.00 7.00
Coloring

1kl of Skim Milk 190.00 200g of rock salt 4.00

½ tbs. Strawberry red 5kls Ground Pork

5.00 425.00
food coloring Fat(packed)

4kls Ground Pork

340.00 (80 per kilo) 6kls Ground Pork 1,380.00
Fat(packed)

6kls Ground Pork 1,380.00 ___________ _________

TOTAL RAW Php 2,250.00 (php TOTAL RAW Php 2, 187.00 (php
MATERIALS 191 per kilo) MATERIALS 128 per kilo)

MARK UP 950.00 (60 per kilo) MARK UP 1,213.00 (71 per kilo)

TOTAL Php 3,200.00 TOTAL Php 3,400

Table 6 shows the costing of each ingredients used of each product and its total.
PLACE

Looking for a place is one the factors being considered in starting the business.

Therefore, the proponents decided to look for a convenient and a pleasing place for the

proposed business where the customers can easily see and have the chance to stopover

without having any difficulty. The business is located at the municipality of Daraga. Rizal Street,

Barangay Sagpon has the potential of having a great customers for it is because it’s near in the

school, and near to a residential area, and it is also along the road where people can easily see

the proposed business.

PROMOTION

The proponents decided to implement the marketing strategies through the word of

mouth in order to help the business generate more sales. Tarpaulin and mini fliers will be used

to promote the business and also to invite the customers to buy the product. This will be put

around the municipality of the target market.

 TABLE 6

Promotion

Item Qty Unit cost Total

Tarpaulin 1 Php150.00 Php150.00
Mini Fliers 50 10.00 Php 500.00
TOTAL Php 650.00
Table 7 shows the promotion of the business by the proponents. The tarpaulin being used for
the promotion is going to be put in a place where people can see it. The mini fliers will be given
to the possible customers of the chosen target market.