VPM Enterprise-Marketing

VPM Company
The Marketability
Of
Chilencio
Submitted to the faculty of
St. Paul University Quezon City

2017 December
In Partial Fulfillment for the Requirements
Of the Degree of Bachelor of Science in
Business Administration Major in
Marketing Management
Abilla, Mary Angelika Paije Ashley J.

De Guzman, Kathleen Margaret R.
De Luna, Zarina Valery P.
Saint Paul University Quezon City 1
Table of Contents
I. Industry Background…………………………………………. 2
A. Overview of the Study……………………………………. 2
B. Market Size……………………………………………….. 4
C. Environmental Factors……………………………………. 9
II. Competitor Analysis…………………………………………. 18
A. Identification of Key Competitors………………………… 19
B. SWOT Analysis…………………………………………… 21
III. Opportunity Analysis………………………………………….. 22
A. Idea Generation…………………………………………….
B. Identification of Opportunity……………………………… 23
C. Rationale…………………………………………………… 24
D. Key Success Factors……………………………………….
IV. Target Market Selection………………………………………. 25
A. Identification of Target Market……………………………
B. Consumption Behavior……………………………………. 29
C. Analysis and Rationale for Choice………………………… 37
V. Marketing Feasibility………………………………………….. 38
A. Objectives………………………………………………….
B. Target Market……………………………………………… 39
C. Market Entry, Strategies, Programs and Budget………… 41
D. Marketing Mix……………………………………………... 48
D.1 Product……………………………………………………..
D.1.1 Brand Name……………………………………………… 49
D.1.2 Positioning……………………………………………….. 51
D.1.3 USP/ Features/ Benefits…………………………………..
D.1.4 Packaging and Labels……………………………………. 54
D.2 Pricing……………………………………………………… 56
D.3 Place……………………………………………………….. 59
D.4 Promotion…………………………………………………...
VI. Appendices……………………………………………………… 61
THE MARKETABILITY OF CHILENCIO

I. Industry Background
A. Overview of the Study
Chili sauce or Chili oil is a condiment prepared with infused chili peppers and
spices that is known globally. Through the years, a lot of people have been patronizing
this popular condiment as it serves as a kick start to a meal and keep you wanting for
more. Consumers crave the taste of garlic mixed with chili and oil as their dipping sauce
for food pairings. Some like it hot, while some like it mild or extremely hot.
These are being sold in malls, restaurants, food markets, bazaars, and specialty
stores among others. Sauces have been an integral part of every cuisine, especially Asians
and in particular Filipino cuisine. Most Asian cuisine has chili sauce as part of its
ingredient which spikes up a certain level of spice and gives a distinctive taste in its
flavor. With its versatility, it can be mixed in recipes or as a finishing touch before
serving the dish.
Chili sauce has been part of our daily lives. In the streets, during snack time while
taking a break from work or school, on our way home or just our friendly neighbor
selling at food kiosks in our hometown. It is such an exhilarating feeling to be eating with
different kinds of condiments with different flavors that party in your palette. People
always look forward to traditional celebrations and get-togethers that include food as the

main star of festivities. From around the globe, condiment pairings make it more
interesting to share and celebrate with food to satisfy our gastronomic pleasure.
In the Philippines and mainly in Manila area, there are only few groups of
companies that are selling mushroom chili sauce. Most of these companies are from a
small enterprise, which gives us the opportunity to compete and push our product in the
market. VPM Company wants to develop and create an extra ordinary chili sauce by
adding different kinds of mushrooms as our base ingredient and a variety of spices and
herbs that make a packed full of bold flavors with added health and nutritional benefits.
Not just your regular chili sauce.
The study focuses on who will be the target market for the product, the
advantages and uniqueness of the product over competitors, feasible merchandising
locations, and effective marketing promotions for Chilencio’s Mushroom Chili Sauce.
The major purpose of this market research is to know the marketability of
mushroom chili sauce. Chilencio recognizes the open stance of its target market through
survey and research methods. This research reveals the preferences for chili sauce
condiment of our specific respondents and prospecting customers in White Plains
Village, Quezon City.
The Great British Chefs states that the oil is typically served at the table for diners
to add to whatever they please, but it’s also used to dress aromatic beef stews, to flavor

broths containing all sorts of meats and vegetables and as dipping sauce for steamed
dumplings. Outside of Chinese cuisine, it can be used as a marinade for steaks, spread on
a cheese sandwich, stirred through hummus or even as a flavor for ice cream. Walk into
any restaurant in the country these days, and there’s a good chance you’ll find a bottle
of chili oil sitting on the table, ready for you to dip or sprinkle or pour at your leisure.
Although chili oil first arrived on these shores courtesy of Chinese cuisine, it has become
a universally loved condiment, and as a nation, we’ll eat it with absolutely anything. Not
all chili oils are created equal, though. Your average chili oil tends to be a simple
combination of chili and oil, with the oil heated up, then poured over dried chili and left
to steep – resulting in that classic scarlet hue – and the dried chili usually discarded.
That’s all well and good if you’re after an extra hit of heat and color.
B. Market Size
Chili sauce has been around for the last hundred years. People have the natural
inclination to enhance their food with exciting flavors and many prefer those that
stimulate their senses with something spicy. Growing consumer interest towards different
taste preferences and changing eating habits are increasing the demand for condiment
sauces globally. According to Transparency Market Research, the global market for
condiment sauces is expected to witness a Compound Annual Growth Rate (CAGR) of
3.21% between 2014 and 2020. The market was worth US$18.68 billion in 2013 and is
expected to touch US$23.29 billion by the end of 2020.

GROWTH OF CHILI SAUCES AGAINST OTHER SAUCES
http://Blog.euromonitor.com/2015/02/Variety-Is-the-Spice-of-Life-Global-Growth-in-Chili-Sauces.html.
(Skelly. 2015)
Today, chili sauce is not just used for dips but also as a main ingredient for
cooking. Consumers, who are developing more sophisticated tastes, are more willing to
experiment and try new things. Jack Skelly of Euromonitor International states that, “as a
result of the ubiquity of these sauces and increased exposure to cuisines that are spicier
than standard Western fare, there has been an increased disposition for, or at least
tolerance of, spice”. Subsequently, as sauces became more widely accepted, they trickled
down into supermarkets. Chili sauces are expected to maintain their substantial growth
over the next five years, with an additional US$632 million of new sales globally. Again,
this compares favorably with the overall performance of both sauces and packaged food –
in North America, growth of sales of hot sauces is expected to grow 15 times quicker

than the overall sauce market. Companies would certainly do well to invest in these
products. According to its site, the world’s tolerance for hot sauces appears to be
rising. From a global perspective, sales of spicy chili sauces grew by nearly twice as
much as packaged food. Moreover, growth was well balanced, with strong
performances in both developing and developed markets, which have been struggling
– in North America, chili sauces contributed 11% to all additional packaged food growth
over 2009-2014, while in Asia Pacific, an extra US$493 million was added by these
sauces. This is worth more than total packaged food value sales growth in Bulgaria
over the same period. There are several reasons why these sauces are performing so
well across the world.
According to IBIS WORLD, The Hot Sauce Production industry produces spicy
sauces made from chili peppers and other ingredients which are then sold to retailers,
wholesalers and other food manufacturers. Following exponential gains in the early
2000s, the industry has settled into more moderate growth in the five years to 2017. The
outlook for domestic hot sauce producers remains largely positive, particularly as demand
for US-made condiments continues to rise in export markets. Whereas the previous five
years were characterized by increasing market acceptance and usage of hot sauces, the
next five years will be characterized by growth in per capita consumption and increasing
competition from foreign manufacturers and new industry entrants.

Computation for getting the respondents for survey
Quezon City Population 2,936,1216
Quezon City Population (District 3) 325,304
Barangays in District 3 37
Young Professionals (20-34) 792,150
Mid-Age (35-64) 788,442
Sample size used S=___N___
1+Ne2
Margin of Error 10% (0.1)
TD = 325 304 = 8792
B 37

YP: 27% = 2374
= 4748
MA: 27% = 2374
S = ____4748_____
1 + 4748(0.1)2
= 97.94
= 98

C. Environmental Factors
External Environmental Scanning
The STEP Analysis is used to identify and determine the external factors which affect the
company resulting to its macro environment. All the external forces that the company has
no control over, should manage the macro environmental to maximize the benefit that can
be gained from it.
SOCIO-CULTURAL TECHNOLOGICAL
DEMOGRAPHIC  Technological advances
 Consumer Behavior  Fast Production
 Consumer Attitude
 Social Lifestyles
ECONOMIC POLITICAL
 Disposable income of  DTI
buyers  Trade Agreements/Export
 GDP  Barangay Clearance
 Inflation rate  SEC
 Foreign exchange rate  Mayor’s Business Permit
 BIR

 Family, friends, colleagues, and the media are considered social factors
which focus on the forces within the society. These aspects affect
attitudes, behaviors, opinions, and preferences. Also, it represents how
we are shaped as individuals and manifests how each of us behave, act,
react, and even on what we buy among preferences.
 In creating a product or even a service, an organization must consider
how it will benefit a person’s lifestyle as well as complementing
behaviors.
 As the years passed, appreciation for food and culinary has evolved.
The market does not only want good food, but are more adventurous
and particular on their preference. Condiments like the chili sauce are
considered essentials in food pairings, dipping sauce, rubs, add on
ingredients to a dish that will surely spike a person’s appetite
 Technological
 Automation – Machine automated equipment help manufacturers,
distributors, suppliers, retail stores, supermarkets, and other type of
businesses in reducing cost and help in faster production and delivery
of goods and services.
 Chilencio will be using a food processor for a faster and efficient
production of goods. By using a food processor, it is ensured that each
morsel of ingredients are equally portioned and within sanitized. To

ensure that the mushroom chilli sauce is packaged carefully and sealed,
cap seals are sealed using a hair blower.
 Economic
 To build strategies, businesses analyze economic factors based on its
environment.
 To determine the direction where the economy is moving, one should
consider inflation rate, interest rates, monetary or fiscal policies.
 Foreign exchange affecting import and export products.
 In the market today, the demand for condiments most especially in the
hot sauces and chili sauces line is fast growing. There are an enormous
percentage of markets to tap locally and internationally that business
may be open for import and export of goods.
 Political
 DTI (Department of Trade and Industry)
 VPM Company is required to secure a DTI permit for
trading goods and services overseas
 Trade Agreements / Export
 These are contracts and agreements with other countries
relative to trade.
 Barangay Clearance
 This ensures that the proponent is a resident of a good
standing.

 SEC (Securities and Exchange Commission)
 VPM Company has gathered information at SEC for
research and future business purposes.
 Mayor’s Business Permit
 This allows a business to operate in the city or
municipality.
 BIR (Bureau of Internal Revenue)
 A company is required to register in BIR for purposes of
paying proper taxes. BIR also requires registered receipts.
 DOH (Department of Health)
 FDA (Food and Drug Administration of the
Philippines)
Regulates and ensures that the food is one hundred percent
safe, protected, and not hazardous to its consumers.
Internal Environmental Scanning
Competitor Supplier
 Perfect Mushrooms  Manufacturers
 Heirloom Mushrooms  Mr. Veronico Reyes (Chilli
 GMCS Farms Supplier)
 Mr. Albert Estabillo (Oyster
Mushroom Supplier)


Distributors
 Unlipack Bottles Divisoria
(Glass Jar Supplier)
Consumer/Customer Target Strategic Partner
Market  Marketing Partners
 White Plains Village,  Researchers
Quezon City Residents  Family members as
 AB Market Consultants
 Majority come from  Financial Partners
the Working-class  Researchers
ages 20-50 years old  Technology Partners
 Graphic Artist
 Marketing Channel
 Green Pepper Store (Official
Physical Distributor)
 Social Platform
(Facebook and Instagram:
chilencioph)
 B2B, Wholesale, Export
COMPETITORS
As defined in Business Dictionary, competitors are companies in the same industry or
a similar industry offering a similar product or service. The presence of one or more
competitors can reduce the prices of goods and services as the companies attempt to gain
a larger market share. These are direct competitors selling mushroom chilli sauce
specifically.Chilencio’s competitors are Perfect Mushrooms, Heirloom Mushrooms and
GMCS Farms.
CONSUMER/CUSTOMER TARGET MARKET

Based on Business Dictionary, Consumers or Customers are the end users or the
party that receives and consumes products (goods or services) and has the ability to
choose between different products and suppliers.
According to Investopedia, Target Market is the focused market a company wants to
sell its products and services to, and includes a targeted set of customers for whom it
directs its marketing efforts. This is essential in developing a marketing plan. Thus, it can
be separated from the market by geography, buying power, demographics, and
psychographics.
 White Plains Village, Quezon City Residents
 AB Market
 Working class from 20-50 years old
SUPPLIER
According to Dave Lavinsky’s article in Forbes, supply the business needs from
complex raw materials to simple everyday office supplies. This ensures that deliverables
are properly executed and may also lead to special discount rates and lower prices.
Strategic partnerships with suppliers could result in new product creation tailored to
specific needs that provide a competitive advantage.

 Manufacturers – entity that makes a good through a process involving raw
materials, components, or assemblies usually on a large scale with different
operations divided among different workers. Commonly used interchangeably
with producer
 Mr. Veronico Reyes will be one of the suppliers to provide the Red
Finger F1 Taiwan chillies as the main ingredient for Chilencio’s
Mushroom Chili Sauce. These chillies will be coming from his farm in
Tanay, Rizal and meet ups will be discussed upon with a minimum
purchase.
 Mr. Albert Estabillo will be one of the suppliers to provide oyster
mushrooms as the featured ingredient for Chilencio’s Mushroom Chili
Sauce. Produce will be coming from his farm in San Mateo, Rizal and
meet ups will be discussed upon with a minimum purchase.
Business Dictionary defines:
 Distributors – an entity that buys non-competing products or product lines,
warehouses them, and resells them to retailers or direct to the end users or
customers. Most distributors provide strong manpower and cash support to the
supplier or the manufacturer’s promotional efforts. They usually also provide a
range of services (ex. Product information, estimates, technical support, after-
sales services, credit) to their customers.

 Unlipack Bottles Divisoria will be our supplier for Chilencio’s 4 oz or
120 ml glass bottle containers with lid and cap seals to make sure our
products are well packed and safe from contamination for a longer shelf
life.
STRATEGIC PARTNERS
Lavinsky (2013) states that in building a strategic partnership, one must identify
which firms could help the business achieve key goals and give a competitive advantage.
Reaching out to firms may take time but while at it, the business’ revenues and profits
start growing. Once partnerships are exclusive, the business can gain critical competitive
advantage.
 Marketing Partners – According to Lavinsky (2013), effective marketing is one
of the most important keys to a successful business. Without a proper marketing
strategy, customers will never be aware of a business or its location, products, or
services. The problem with marketing is that it can actually hurt a business if
done incorrectly (for example, if adverting costs exceed gross margins from
advertising). Developing strategic marketing partners can help you grow your
business at a very low cost. For example, if the partner is in a complementary
business, you could refer clients between one another. Both partners would
increase revenues with no additional advertising costs.

 As a startup enterprise, all marketing efforts will be divided among the
three group member researchers of this study to fully utilize each one’s
abilities, resources, and expertise.
 Consultants – Our own family members act as marketing consultants to
guide and help us strategize how we can market and improve our product.
The team is also in contact with an expert in Food Technology to make
sure we have nutritious food sources that is safe and accurately labeled.
 Financial Partners – Help monitor the flow of the business’ money and come up
with solutions in increasing amount of money available. Filling in for financial
roles are accountants, bankers, investors or financial advisors. (Lavinsky.2013)
 As a startup enterprise, all financials and expenses will be divided equally
among the three group member researchers of this study to have a full
grasp of the trend in selling process.
 Technology Partners – It is essential in understanding the specific needs of
business with the assurance of hired technology experts that is focused on setting
up and fixing office computers, design and implementation of office networks,
creating custom software to allow business to run more efficiently, website design
direction, logos and marketing collaterals. (Lavinsky.2013)

 The team hired a Graphic Artist to create and render our logo design and
marketing collaterals for a solid branding direction that will capture our
targeted market.
 The team made use of a food processor in the ingredient preparation and a
hair blower to seal the bottle caps for a more efficient production and
well-protected packaging.
 Marketing Channel – Study defines it as a channel that refers to a way of making
a product available to distribute to the end consumers. A marketing channel helps
by getting the right products to the right consumer in time for purchase. This
channel terminology falls under the P of physical distribution in the four P's of the
marketing mix.
 Green Pepper Store in White Plains Village, Quezon City will be our
official distributor for Chilencio’s Mushroom Chili Sauce to cater to
residents that will be our prospecting customers.
 Social Platform – Techopedia defines it as a platform that exhibits a
social media network’s technological and user-specific characteristic.
Technologically, a social platform provides markup language for creating
native applications, an application programming interface (API) for third-
party application integration and a backend admin console for managing
the entire user base and preferences. From a user's perspectives, a social

platform enables communities, sharing of content, adding friends, setting
privacy controls and other native social media network features.
 Facebook: chilencioph
 Instagram: chilencioph
 B2B, Wholesale, and Export – Chilencio will aim to tap markets from
Business to Business such as restaurants and shops that can carry its brand
to their product line. Export distribution will also be eventually explored
to supply wholesale and add more revenue to the company.
II. Competitor Analysis
The direct competitors of Chilencio’s mushroom chili sauce are mostly based on
social media. They use Instagram, Facebook and their website as their online store for
quick access to their products. Perfect Mushrooms, GMCS Farms, and Heirloom
Mushrooms are so far, the only competitors of Chilencio’s Mushroom Chili Sauce.
Despite that these competitors are few years ahead, Chilencio has a great potential in
competing and making a name for itself with its unique and bold flavor offering.
A. Identification of Key Competitors

Perfect Mushroom
According to Perfect Mushrooms’ Facebook page, they are a social enterprise that
grows and is the source of only the best locally grown organic mushrooms and one of
their products is mushroom chili sauce. Perfect Mushrooms started in 2013 and continues
to work to make the Philippine mushroom industry globally competitive. They do
training programs on how to grow mushrooms. They have published a book about
cultivating mushrooms and a distributor to small businesses. Their Facebook page has
more than 21,000 followers while their Instagram has more than 1,600 followers and
therefore, they are our biggest competitor.

Heirloom Mushrooms
Heirloom Mushrooms is a small business that sells through social media.
According to its Facebook page, their products are “fresh from our mushroom farm, to
your table.” They have almost 2,000 Facebook followers and more than 60 followers on
Instagram. Heirloom Mushrooms was established in 2013 offering Urban Mushroom
Farming Services, Training and Seminars, Fresh, Dried and Processed Mushroom Goods.
Products include Grow Bags, Fresh Mushrooms, Mushroom Chili Sauce, Warrior Reishi
Mushroom Ale, Gkal Ganoderma & Kombucha Tea Cocktail.
GMCS
GMCS Farms is a small business that started last December 2013 offering different
variants of Spanish sardines, mushroom chili pastes, and other concoctions. GMCS
market their products through social media such as Facebook and Instagram. All products

include mushrooms as a base ingredient and offers its own unique and distinct flavour
that everyone is craving for. They also offer Seminars, Workshops, and Webinars in
cultivating mushrooms.
B. SWOT Analysis
COMPETITORS
COMPETITOR STRENGTHS WEAKNESSES

Perfect Mushrooms Established with the  Different kinds of
following: chili sauce are
 Trusted name in the being sold
industry. everywhere,
 Produce own making it easier for
mushroom supply. consumers to buy.
 Large market share.
Heirloom Mushrooms  Produce own  Some consumers
mushroom supply. don’t have the
 Large market share. patience of ordering
and waiting for the
product.
GMCS  A strong support  Retail price is quite
from SMEs and high compared to
start-ups. other competitors.
CHILENCIO
OPPORTUNITIES THREATS
 Expect a cultural exotic marriage  Fairly new in the food condiment
of flavours in each flavour variant. business.
 Will bring a curiosity to chili  Established competitors with loyal
heads and foodies of all types. customers.
 Build in opportunities for adopters
and influencers who like to be the
first in line to try the hottest new
thing.
 A strong support from The

Philippine Hot Sauce Club.

 Pre-order online for pick-ups and
delivery.
Competitors may have a strong following and can provide high demands of the product to
consumers. These competitors are not just chili sauce makers but also have their own
farm which has a larger scope of market and income. Chilencio, being a new comer in the
business has its own edge over the current leading brands. As a start up, there is less cost
on production because it works only what is needed and have ongoing prospective
partnerships with different suppliers. The makers of Chilencio are also a market for the
product itself so it understands the market that consumers can relate to.
III. Opportunity Analysis
A. Idea Generation
In today’s generation, different varieties of food have been innovated. Food today,
can be seen almost everywhere. In the Philippines, eating is the most popular past time.
Food stalls, food parks, “carinderia”, take outs, drive through/s, ready to eat morsels and
even in stores, we can always fill our tummies anytime and anywhere. Most popular food
that is sold is those processed in jars, plastic containers, paper cups and canned goods.
With the help of technology, almost every variety of food that you can think of is
basically packed and ready to eat, resulting in easier access that may lead to an unhealthy
lifestyle. VPM Company came up with a product that will really fit today’s food

enthusiasts following the trend to an organic health wellness. It is a product that can be
used in many food applications, whether as a condiment or as an additive for recipes. A
commodity that is very much simple and easy to be paired with. Different varieties are
offered to meet the demands and needs of consumers. Chilencio is also a healthy, all-
natural product appetizer that is best for living a healthy lifestyle. It is made with pure
and fresh ingredients giving an advantage to outshine other products. Chilencio’s
mushroom chili sauce is a potent sauce that has its own uniqueness to every flavor and is
conveniently available. The product joins only a small group presently in the Philippine
market today.
B. Identification of Opportunity
Today, different varieties of chili sauce or chili oil are being sold in the market.
VPM Company’s product is fairly new in the condiment industry. It is a very
well-developed mushroom based chili sauce that gives a list of health benefits and
comes with different flavors to choose from. The company’s chili sauce is much
cheaper than its competitors which are would be a great strategy against other
brands. Chilencio’s Mushroom Chili Sauce is inexpensive and yet has high
quality standard of ingredients. With this, VPM Company could attract new
customers to purchase and patronize their product. It is a great opportunity that
Green Pepper Store is willing to market and sell Chilencio’s Mushroom chili
Sauce at its physical store in White Plains Village, Quezon City. The company’s
resources come from different pool of suppliers which makes it easy to provide
for production. The members of VPM Company are chili heads and has penchant

for different condiments. With such passion for and high regard for gastronomic
pleasure, the VPM Company understands the demand for the market. The
company explores market preferences such as flavor options, level of taste, range
of prices that consumers are willing to spend on, including presentation and
packaging that market can appreciate and relate to. Chilencio can be contacted
through social media accounts on Facebook Instagram, and via E-mail. These
platforms are the fastest and easiest to reach targeted markets as well as
communicating with suppliers. VPM Company is doing its best to meet the high
demands of prospective customers, continuously study and meet the unmet
demands of their competitors to provide a competitive advantage to its market.
C. Rationale
The VPM Company wanted to develop a product that will suit today’s generation,
something that is conveniently available to the consumers, ready-to- eat and more
importantly, healthy. The company not only seeks to give consumers a convenient
product, but also aims to give them a healthy experience that will set the product apart
from others. Since to-date, there are only a handful of companies that sell products in the
same category; this is a great advantage as there are not many rivals to compete with for
the market share.
D. Key Success Factors
The following factors play an important role in the success of the company:

 High quality, fresh and organic ingredients
 Proper sanitation in its preparation
 Increased awareness among customers about our product being a healthy food
option
VPM Company plans to use high quality, fresh and organic ingredients that will not
reach beyond the customer’s budget. Sanitation will be strictly observed in every step of
the product preparation. The company wants to make their customers aware of healthy
food options and that they can have a flavor packed condiment with a healthy lifestyle.
VPM Company uses only high-quality ingredients and ensures customers that prices are
reasonable and relatively economical compared to those of our competitors.
IV. Target Market Selection
I. Target Market Selection
A. Identification of Target Market
On October 17 to 21, 2017, VPM Company conducted a survey on mushroom chili
sauce to identify the demographics of the company’s prospective customers and to
determine their needs and preferences. The researchers asked 98 respondents from White
Plains Village in Quezon City. The results are shown below:
A. Identification of Target Market
1. Consumer Profile

DEMOGRAPHIC VARIABLES
Gender Male and Female
Age 20-64 years old
Employment Employees/Proprietors/Students/Retired/Others
Status
Income AB
Geographical White plains Village, Quezon City
Location
VPM Company generalizes consumer’s profile that the product is catered for all age
groups and it is positioned in a most diverse way to provision different market
segments.
A (Senior or Higher Managerial level) Working class and High Executives.
B (Intermediate Managerial level) The general working public.
Age of Respondents
AGE TOTAL # PERCENTAGE

20-34 55 58%
35-50 33 35%
51-64 7 7%
TOTAL 95 100%
Fifty-eight percent of the respondents fall on the ages between twenty up to thirty-four
years old followed by respondents from thirty-five to fifty years old at thirty-five percent.
While seven percent of the respondents came from the age bracket of fifty-one up to
sixty-four years old.

It is evident that majority of the respondents came from the bracket of working class who
has the ability and money to buy for their own groceries. At this rate, these respondents
are those market that is mature enough to decide on which condiments will they stock up
in their pantry and also have an adventure palette to try on new flavors that will go with
their meals.
EMPLOYMENT STATUS:
EMPLOYMEN TOTAL PERCENTAG

T STATUS # E
Employed 46 47%
Self-employed 25 25%
Unemployed 11 11%
Others Student 13
Graduate 2 17%
Broker 1
Retired 1
TOTAL 99 100%
Forty-seven percent of the respondents are employed, while twenty-five percent are self-
employed. Eleven percent of the respondents came from those that are unemployed and
the remaining seventeen percent of respondents are either students or retired. Majority of
respondents and hopefully prospective customers come from the working class which has
the capacity to buy and allot a budget for condiments for regular use in their household
kitchen.

ANNUAL FAMILY INCOME RANGE:
ANNUAL
FAMILY/HOUSEHOL
D INCOME TOTAL PERCENTAGE
below 40,000 11 11%
40,000 - 59,999 8 8%
60,000 - 99,999 8 8%
100,000 - 249,000 10 10%
250,000 20 21%
300,000-
Others 500,000 1
500,000-
600,000 1
600,000- 10%
8000,000 2
800,000 and
up 2
Others 4
No Answer 31 32%
TOTAL 98 100%
Twenty-one percent of the respondents are earning Php 250, 000 annually, while eleven
percent earns below Php 40,000.00, ten percent earns between Php 100,000.00-Php

249,000, eight percent earns Php 60,000.00-Php 99,000, another eight percent earns Php
40,000.00-59,000, ten percent have other answers as option, and the remaining thirty-one
percent opted not to answer the question.
Household income is crucial as much as it is important among several factors in targeting
the right customer for our product. Based on the results of the survey, majority come
from the AB market. Considering our respondents reside in an exclusive village in
Quezon City, these prospective customers come from the elite society, the upper class, to
middle class market. These types of market mostly work in the busy metro earning at
least Php 250, 000 annually, among others that opted to not disclose their household
income.
A. Consumption Behavior
For the company to identify the behavior of the consumers, the question “Do you eat
mushroom?” was included in the survey to be able to identify and relate to their behavior
and their interest in our mushroom chili oil.
RESPONDENTS EATING MUSHROOMS
RESPONS PERCENTAG
E TOTAL E
YES 95 97%
NO 3 3%
TOTAL 98 100%

Ninety-seven percent of the respondents answered that they eat mushrooms, while three
percent of them answered that they do not eat mushrooms.
If yes, what kind of mushroom?
MUSHROOM TYPE RECOGNIZED BY RESPONSDENTS
MUSHROOM PERCENTAG
TYPE TOTAL E
SHIITAKE 71 34%
OYSTER 56 27%
BUTTON 74 36%
OTHERS 3 1%
PORTOBELLO 1 1%
I DON'T LIKE
MUSHROOM 1 1%
TOTAL 206 100%
Thirty-four percent of the respondents have recognized Shiitake as a mushroom type,
while twenty-seven percent recognized Oyster mushrooms, thirty-six percent recognized

Button mushrooms, one percent recognized Portobello mushrooms, one percent did not
specify a mushroom type, and the remaining one percent does not prefer mushroom on
chili sauce.
Have you heard about mushroom chili sauce? If yes, what brand? Please write on
the space provided.
BRAND FAMILIARITY
PERCENTAG
RESPONSE TOTAL E
YES 10 10%
NO 88 88%
Paije's Mushroom
Chili 2 1%
Chinese Chili 1 1%
TOTAL 101 100%

Ten percent of the respondents have already heard of mushroom chili sauce, eighty-eight
percent has not heard of it, one percent has heard of Paije Abilla’s (Chilencio) Mushroom
Chili Sauce, and one percent has heard of Chinese Chili.
Are you willing to try Chilencio’s Mushroom Chili Sauce?
CHILENCIO’S MARKETABILITY
RESPONS PERCENTAG
E TOTAL E
YES 96 98%
NO 2 2%
TOTAL 100 100%
Ninety-eight of the respondents are willing to try Chilencio’s Mushroom Chili Sauce,
while two percent of them aren’t.
Which chili sauce flavor/s are you willing to try?
FLAVOR PREFERENCE
TOTA PERCENTAG
FLAVORS L E
Original (Garlic) 82 34%
Asian (Ginger) 42 17%
Oriental
(Licorice) 33 13%
Italian
(Balsamic
Vinegar) 34 14%

Western
(Caramelized
Onions) 52 21%
Sweet
Others Chili 2 1%
TOTAL 245 100%
Thirty-four percent of the respondents have preferred the Original (Garlic) flavor,
seventeen percent preferred the Asian (Ginger) flavor, thirteen percent preferred the
Oriental (Star Anise) flavor, fourteen percent preferred the Italian (Balsamic Vinegar)
flavor, twenty-one percent preferred the Western (Caramelized Onion) flavor, and one
percent preferred Sweet Chili flavor for their chili sauce
How often do you eat chili sauce for your food pairings?
CONSUMABLE FREQUENCY
FREQUENC PERCENTAG
Y TOTAL E
Not at all 5 5%
Seldom 46 47%
Always 46 47%
No answer 1 1%

TOTAL 98 100%
Five percent of the respondents do not prefer to have chili sauce in their food pairings,
while forty-seven answered seldom, another forty-seven percent said always, and one
percent preferred not to answer.
How many 4-oz chili sauces can you consume in a span of a week?
RESPONDENT CONSUMPTION
PERCENTAG
SIZE TOTAL E
Half a bottle 53 54%
1-2 bottles 32 33%
3 or more
bottles 10 10%
One bottle a
Others month 1 1%
None 2 2%
TOTAL 98 100%
Fifty-four of the respondents can finish half a bottle of the chili sauce in a span of a week,
while thirty-three percent can finish 1-2 bottles, ten percent can finish three or more
bottles in a week, one percent can finish only one bottle per month, and two didn’t
specify.
What kind of packaging is most appealing to use in buying Chilencio’s Mushroom
Chili Sauce?

PACKAGING PREFERENCE
PACKAGIN PERCENTAG
G TOTAL E
Sachet 6 6%
Plastic tub 3 3%
Glass jar 88 90%
Others 0 0%
No Answer 1 1%
TOTAL 98 100%
Six percent of the respondents prefer sachet as packaging for their Mushroom Chili
Sauce, while three percent prefer a plastic tub, ninety percent prefer on glass jars, and one
percent did not specify packaging preference.
How much are you willing to spend for a 4-oz Chilencio’s Mushroom Chili Sauce?
PRICE PREFERENCE
PRICE TOTAL PERCENTAGE

100-150 41 42%
150-200 43 44%
200-250 13 13%
Others (NONE) 1 1%
TOTAL 98 100%
Forty-two percent of the respondents prefer Php 100-150 price range for the chili sauce,
forty-four percent prefer Php 150-200 price range, thirteen percent prefer Php 200-250
price range, and one percent answered others but did not specify.

What is your preferred mushroom preparation in a chili sauce?
MUSHROOM PREPARATION
MUSHROOM
PREPARATION TOTAL PERCENTAGE
Diced in chunks 26 24%
Minced 61 57%
Puréed 21 19%
TOTAL 108 100%
Twenty-four percent of the respondents preferred diced in chunks for the mushroom
preparation, while fifty-seven percent preferred it minced, and nineteen percent preferred
it puréed.
How much level of spice can you handle in your chili sauce?
SPICE LEVEL PREFERENCE
SPICE LEVEL TOTAL PERCENTAGE

Mild 27 27%
Hot 59 58%
Extra Hot 15 15%
TOTAL 100 100%
Twenty-seven percent of the respondents preferred a mild spice level for their chili sauce,
while fifty-eight percent preferred it hot, and fifteen percent would like to have it extra
hot.

Where do you prefer to purchase your order of Chilencio’s Mushroom Chili Sauce?
PREFERRED PURCHASE LOCATION
PERCENTAG
PLACE TOTAL E
Physical store
(visit) 57 40%
Pick-up Purchase 26 18%
Online Delivery 57 40%
Others 0 0%
Supermarket 3 2%
TOTAL 143 99%
Forty percent of the respondents would prefer to visit the physical store to purchase
Chilencio’s Mushroom Chili Sauce, while eighteen percent prefer it picked up, forty
percent of the respondents would prefer to visit the physical store to purchase Chilencio’s
Mushroom Chili Sauce, while eighteen percent prefer it picked up, forty percent would
prefer online delivery, and two percent prefer to purchase at the supermarket.

How would you like to get the product’s information and connect with us in the
future?
PREFERRED INFORMATION TOOL
INFORMATIO PERCENTAG
N TOOL TOTAL E
E-mail 29 17%
Facebook 67 40%
Instagram 51 30%
Twitter 16 10%
Viber 2 1%
Supermarke
t 1 1%
Others Flyers 1 1%
TOTAL 100 100%
Seventeen percent of the respondents prefer to receive product information and to be
contacted via E-mail, while forty percent preferred Facebook engagement and postings,
thirty percent preferred Instagram engagement and postings, ten percent preferred Twitter
engagement, one percent preferred it on Viber, another one percent preferred it in the
Supermarket, and one percent would go for flyers.
A. Analysis and Rationale for Choice
Results of the survey have been taken into consideration while creating and
conceptualizing the product. From the flavor choices that will be released, to the
preferred mushroom preparation, spice level, price, and packaging, among other factors

as presented in the gathered data. Male and predominantly female in the working class
and the age group of twenty to thirty-four years old gave us their preferences as presented
in the survey. A large percentage of respondents are willing to try the product and are
very familiar with mushroom types that we have presented in the options given. These
prospective consumers appreciated the boldness of the flavors when they had the chance
to try it for themselves while answering the survey questionnaire. Majority of the
respondents prefer a hot level of spice and can consume half a bottle in a week’s time.
Cost of the product is a non-issue to majority of the respondents as they are willing to pay
for it’s worth. As the team focus on the practicality of production, the aim is to create the
best quality product that our prospective customers would be willing to pay for their
money’s worth. Attending chili events and engaging in online groups has widened
Chilencio’s network of suppliers where there is continuous information of trends and
supply among mushroom and chili growers.
Chilencio’s aim is to provide a new offering of chili sauce that will exceed not only the
enthusiasts’ expectations, but also consider Chilencio’s Mushroom Chili Sauce a staple
condiment in every household including food establishment’s kitchen pantry.
V. Marketing Feasibility
A. Objectives
 To determine the feasibility of producing and marketing Chilencio’s Mushroom
Chili Sauce as a viable business venture.

 To have a clear picture of market demand for the product and to determine which
segment of the market the company will have to focus more on with regard to
marketing thrust.
 To create an innovation in the bottled gourmet industry by producing freshly
bottled mushroom chili sauce with variant flavors such as Original Mushroom
Chili Garlic, Asian Mushroom Chili Ginger and Italian Mushroom Chili with
Balsamic Vinegar, cooked in soya oil with different vegetables.
 To introduce in the market another brand of ready-to-eat and healthy alternative to
existing brands of mushroom chili sauce.
 To raise awareness that Chilencio’s Mushroom Chili Sauce can be consumed with
crackers, chips, dumplings, and other dishes such as pasta and many others.
 To be able to grow in the competitive food industry, exceed customer satisfaction
and promote a nutritious lifestyle while providing a high-quality condiment.
 To continually support the country’s local producers and promote the Philippine
Mushroom and Chili Industry through the use of only the natural and freshest
ingredients in our product.
 To be able to reach and exceed sales quota and target profit.
 To increase the number of happy and satisfied customers who will patronize our
brand on a continuous basis.
B. Target Market
 Age

 Middle-aged Market (35-64 years old)
 Age group with the most buying power and buys the largest number of
goods and services, receives much attention from the producers of high-
priced, top-of-the-line quality
 Young Adult(20-34 years old)
 24% of the population considering the size and purchasing power
 Age group with major needs and wants that have the money to satisfy
them and is willing to spend
 Gender
Women
 With an increasing amount of buying power because of income, middle-
aged women usually purchase groceries and health care products.
Men
 With an increasing amount of buying power and with an interest in chili
sauce products who are willing to scout for the best kind of purchase to
satisfy their love for the condiment
Grocery products are also known to be purchased by middle-aged men
 Occupation
 Supervisory to Top Management Level

 With high paying job positions that have discretionary income to spend on
goods and services
 Socio Economic Status
 Class AB Market
 High Income Class Household earning an average of Php 200,000 per
month or Php 2.4 million per year
 Upper class in higher managerial, administrative or professional level such
as Managers, Lawyers, Doctors
 Middle Income Class Household earning an average of Php 36,934 per
month.
 Middle class in an intermediate managerial, administrative or professional
capacity such as deputy secretary or earning an above average pay
 Class C Market
 Low Income Segment earning an average of Php 9,061 per month
 Lower Middle class in supervisory or clerical, junior managerial,
administrative such as a supervisor or a highly skilled job
 Market Entry Strategies, Programs, and Budgets
To spread awareness to the market not just a healthier alternative but a top choice of
chili sauce among other competitors. Second is Internet Marketing, with the use of digital
marketing, it will help to introduce our brand and boost sales for our product. Facebook
and Instagram are two platforms that Chilencio is going to use to have social media

engagement with our targeted customers. Third is “Word-of-Mouth”, getting the best
testimonials and review for our product relies on what quality of service we give our
customers. It starts from our family and friends who can support and back us up in
promoting the brand.
The budget of VMP Company came from their pp-front Budget which is Php 9, 000
and other funds. The amount of Php 3, 000 will be collected as contribution for each
member/owner. Other resources come from school allowance and from earnings of
members’/owners’ Christmas 2017 Garage Sale.
CHILENCIO GANTT CHART SHEET
DURATI
TASK NAME ON START FINISH ASSIGNED TO: STATUS
22-May-
Brainstorming for Product Concept 3 months 17 16-Aug-17 Abilla, de Luna completed
Brainstoriming for Product Recipes on going 15-Jun-17 Abilla, de Guzman, de Luna
Buying of Ingredients for product variants 1 day 15-Jul-17 15-Jul-17 de Luna completed
Cooking of 3 variants
(Original, Balsamic, Extra Hot) 1 day 18-Jul-17 18-Jul-17 de Luna completed
22-May-
Finalize Product Concept 3 months 17 16-Aug-17 Abilla, de Luna completed
16-Aug-
Finalize team members 1 day 17 16-Aug-17 Abilla, de Guzman, de Luna completed
17-Aug-
Revision of Recipes 1 day 17 17-Aug-17 Abilla, de Guzman, de Luna completed
18-Aug-
Submitted List of Ingredients 1 day 17 18-Aug-17 Abilla, de Guzman, de Luna completed
18-Aug-
Hire Graphic Artist for Logo 1 week 17 25-Aug-17 Abilla, de Guzman, de Luna completed

24-Aug-
Buying of Ingredients for product variants 3 days 17 26-Aug-17 Abilla, de Guzman, de Luna completed
28-Aug-
Cooking of different variants 1 day 17 28-Aug-17 Abilla, de Guzman, de Luna completed
28-Aug-
Cost Analysis 2 days 17 29-Aug-17 Abilla, de Guzman, de Luna completed
Finalizing materials for Taste Testing 29-Aug-

(classroom) 1 day 17 29-Aug-17 Abilla, de Guzman, de Luna completed
30-Aug-
Company Profile Draft 1 day 17 30-Aug-17 Abilla, de Guzman, de Luna completed
Classrom Sample Tasting 1 day 1-Sep-17 1-Sep-17 Abilla, de Guzman, de Luna completed
Build Email, Facebook, Instagram

accounts 1 day 4-Sep-17 4-Sep-17 de Luna completed
Proposed Survey Questions 2 days 5-Sep-17 6-Sep-17 Abilla, de Guzman, de Luna completed
Submit Company Profile 1 day 6-Sep-17 6-Sep-17 Abilla, de Guzman, de Luna completed
Canvas Bottles, Chillis, Oyster Mushrooms on going 7-Sep-17 open time Abilla, de Guzman, de Luna on going
Cost Analysis 1 day 7-Sep-17 7-Sep-17 Abilla on going
Submit Costing 1 day 8-Sep-17 8-Sep-17 Abilla, de Guzman, de Luna completed
Pick up Bottles with Seal Caps 1 day 11-Sep-17 11-Sep-17 de Luna completed
Buying of Ingredients for product variants 1 day 12-Sep-17 12-Sep-17 Abilla, de Guzman, de Luna completed
Cooking of different variants 1 day 13-Sep-17 13-Sep-17 Abilla, de Guzman, de Luna completed
Buying of Marketing Collaterals and

Supplies for Product Presentation 1 day 14-Sep-17 14-Sep-17 Abilla, de Guzman, de Luna completed
Product Presentation 1 day 15-Sep-17 15-Sep-17 Abilla, de Guzman, de Luna completed
Chapter 1-3 Draft 16-Sep-17 21-Sep-17 Abilla, de Guzman, de Luna completed
Attend Philippine Chili Festival 2017 1 day 17-Sep-17 17-Sep-17 de Luna completed

Chapter 1-4 Proof Read Edit 1 day 21-Sep-17 21-Sep-17 de Guzman completed
Submit Chapter 1-3 1 day 22-Sep-17 22-Sep-17 Abilla, de Guzman, de Luna completed
Market Research Paper New Format 1 day 27-Sep-17 27-Sep-17 completed
The Grove Sample Tasting

(Philippine Hot Sauce Club) 2 days 6-Oct-17 7-Oct-17 Abilla, de Guzman, de Luna completed
White Plains Village Sample Tasting 1 day 7-Oct-17 7-Oct-17 Abilla, de Guzman completed
Market Research Consultation 1 day 11-Oct-17 11-Oct-17 Abilla, de Guzman, de Luna on going
Chapter 4-5 Draft 14-Oct-17 19-Oct-17 Abilla, de Guzman, de Luna completed
Validation Paper for signatories 17-Oct-17 17-Oct-17 de Guzman completed
Survey (White plains Village, Quezon

City) 5 days 17-Oct-17 21-Oct-17 Abilla, de Guznan, de Luna completed
Logo Rendering 5 days 21-Oct-17 25-Oct-17 Artist completed
Validation Paper Submission 1 day 24-Oct-17 24-Oct-17 Abilla, de Guzman, de Luna completed
Chapter 1-5 Draft and Revisions 2 days 25-Oct-17 26-Oct-17 Abilla, de Guzman, de Luna completed
Submit Chapter 1-5 Draft 1 day 27-Oct-17 27-Oct-17 Abilla, de Guzman, de Luna completed
10-Nov-
Chapter 1-5 Final Paper Draft 1 week 17 17-Nov-17 Abilla, de Guzman, de Luna completed
15-Nov-
Final Rendering of Logo 2 days 17 16-Nov-17 Abilla completed
18-Nov-
Submit Final Draft Paper 1 day 17 18-Nov-17 Abilla, de Guzman, de Luna
21-Nov-
Revision of Final Paper 1 day 17 21-Nov-17 Abilla, de Guzman, de Luna
22-Nov-
Final Paper Deadline 1 day 17 22-Nov-17 Abilla, de Guzman, de Luna
28-Nov-
Mock Defense Review 2 days 17 29-Nov-17 Abilla, de Guzman, de Luna
Final Defense 1 day 4-Dec-17 4-Dec-17 Abilla, de Guzman, de Luna

CHILENCIO GANTT CHART: The Marketability of Chilencio's Mushroom Chili Sauce

TASK NAME 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Finalize Product Concept
Finalize team members
Revision of Recipes
Submitted List of Ingredients
Hire Graphic Artist for Logo
Buying of Ingredients for product
variants
Cooking of different variants
Cost Analysis
Finalizing materials for Taste
Testing (classroom)
Company Profile Draft
Classrom Sample Tasting
accounts
Proposed Survey Questions
Submit Company Profile
Canvas Bottles, Chillis, Oyster
Mushrooms
Cost Analysis
Submit Costing
Pick up Bottles with Seal Caps
variants
Cooking of different variants
Buying of Marketing Collaterals
and Supplies for Product
Presentation

Product Presentation
Chapter 1-3 Draft
Attend Philippine Chili Festival
2017
Chapter 1-4 Proof Read Edit
Submit Chapter 1-3
Market Research Paper New
Format
(Philippine Hot Sauce Club)
White Plains Village Sample
Tasting
Market Research Consultation
Chapter 4-5 Draft
Validation Paper for signatories
Survey (White plains Village,
Quezon City)
Logo Rendering
Validation Paper Submission
Chapter 1-5 Draft and Revisions
Submit Chapter 1-5 Draft
Chapter 1-5 Final Paper Draft
Final Rendering of Logo
Submit Final Draft Paper
Revision of Final Paper
Final Paper Deadline
Mock Defense Review
Final Defense

CHILENCIO GANTT CHART: THE MARKETABILITY OF CHILENCIOS'S MUSHROOM CHILI SAUCE

TASK NAME DESCRIPTION
Brainstorming for Product Concept
Brainstorming for Product Recipes
variants
Cooking of 3 variants
(Original, Balsamic, Extra Hot)
Finalize Product Concept
Finalize team members
Revision of Recipes
Submitted List of Ingredients
variants
Cooking of different variants Product Conceptualization of which main ingredient to use for the product and
Pick up Bottles with Seal Caps other components. Finalizing which flavor matches for the main product.
Finalizing materials for Taste Testing
(classroom)
Buying of Marketing Collaterals and
Supplies for Product Presentation
Canvas Bottles, Chillis, Oyster
Mushrooms Gathering of supplies and marketing collaterals needed for the product.
Hire Graphic Artist for Logo
Logo Rendering
Final Rendering of Logo Hired a graphic artist to execute design vision and other marketing collaterals.
Cost Analysis
Submit Costing Pricing and analyzing expenses to come up with a retail price.
Product Presentation
Attend Philippine Chili Festival 2017
(Philippine Hot Sauce Club)
White Plains Village Sample Tasting Makes of a good study of market preference.
accounts Online Promotions and contact details
Proposed Survey Questions Research method and study through articles and fact based analysis.

Chapter 1-3 Draft

Submit Chapter 1-3
Chapter 1-4 Proof Read Edit
Market Research Paper New Format
Chapter 4-5 Draft
Survey (White plains Village, Quezon
City)
Chapter 1-5 Draft and Revisions
Submit Chapter 1-5 Draft
Chapter 1-5 Final Paper Draft
Chapter 4-5 Draft
Company Profile
Submit Company Profile draft Branding and company identity.
Validation Paper for signatories
Validation Paper Submission
Market Research Consultation Validation and approval from research office for the chosen study to be conducted.
Mock Defense Review
Final Defense Justifying the potential of the product and its future success.
A. Marketing Mix
D.1 Product
Chilencio’s Flagship Product is the Original Garlic. It is the classic Chili Garlic
flavor with a healthier twist that is infused in Oyster Mushrooms and Dried Shiitake
Mushrooms with real minced bits.
VPM Company also produces other variants. Asian flavor has the essence of
ginger that gives a soothing Asian kick of flavors combined with Oyster Mushrooms.
Italian flavor is Pickled Oyster Mushrooms and Dried Shiitake in tangy balsamic vinegar
with the perfect blend of spice and sweetness from the capsicum. Oriental flavor has the

aroma of the infused star anise (“licorice”) matches the Oyster Mushrooms and Dried
Shiitake with an East-Asian flavor feel. Western flavor is a sweet and pungent taste from
the caramelized onion relish makes a great combo with Oyster Mushrooms and Dried
Shiitake.
D.1.1 Brand Name
CHILENCIO’S MUSHROOM CHILI SAUCE by VPM COMPANY

Chilencio is a moniker from the Spanish term “Silencio” or “Silence” in English.
Once you try it, it will just calm and silence you from its bold flavors that parties in your
mouth and make you ask for more. Chilencio is a type of chili sauce condiment. The
main components are Red Finger F1- Taiwan, oyster mushrooms, dried shiitake
mushrooms.
Logo Design: To be visible and clear what our branding is. On shelves and markets full
of condiments, this 'minimalist' approach is easily visible, achieving our goal to 'stand
out'
Word Play: This style of using the name and details as the main components of our
design. With minimal design accents, it is in tune with the theory of 'simplicity' and
'clarity'. Very easily recognizable no matter where it is seen (print, digital, textiles, etc.).
A push on the health benefits of mushroom and chilies through chili sauce
We are bringing a new offering of exotic and bold flavors to the market. We only use the
freshest and natural local ingredients in support for our Filipino food and agriculture.
VPM COMPANY

VPM is a combination of the owners’ first name initials (Valery, Paije, and
Margaret) to mark a strong identity.
Symbol: the watermark symbol means our advocacy for health
Colors: royal blue is our dominant color which imparts our trust, loyalty, and honesty to
the brand we create.
Established in September 2017, Chilencio is a condiment joint by VPM Company, a sole
proprietorship company that will soon be available in White Plains Village, Quezon City.
It specializes in a unique take on chili sauce.
As a start, VPM Company will be focusing on offering “Mushroom Chili Sauce” as its
flagship product and will eventually venture in other food products in the future.
D.1.2 Positioning
A different take on the usual chili garlic sauce, comes with oyster mushrooms and
shiitake that is packed with health benefits and is reasonably affordable for the young

professionals and middle-age market. It is a staple in the kitchen that chili enthusiasts will
consider in stocking up their pantry.
D.1.3 USP/ Features/ Benefits
The company’s USP is incomparable to competitors because it is offering a
marriage of bold and exotic flavors that is new to the market with an economical price
without diminishing freshness and quality. All ingredients are locally sourced to help
local growers and merchants as well. Mushroom and chilies has benefits that will
guarantee prevention of other ailments and a nutritious lifestyle.
Chilencio’s Features are:
 A homegrown business
 Proudly Pinoy
 Convenience
 Comes in 5 selection of flavors
PRODUCT BENEFITS
The following are benefits of Oyster Mushrooms:
 Anti-oxidant

 Anti-bacterial effects
 Nutritional Value
 Immune System Support
 Anti-viral and Anti-microbial
 Lowers Blood Pressure
 Anti-inflammatory
The following are benefits of Shiitake Mushrooms:
 Fight Obesity
 Support Immune Function
 Destroy Cancer Cells
 Support Cardiovascular Health
 Contain Anti-microbial properties
 Boost Energy and Brain Function
 Provide Vitamin D
 Can Fight Tumors
 Promote Skin Health
The following are benefits of Red Finger F1 Chilis:
 Lowers Blood Sugar Levels
 Improve Heart Health

 Boost Circulation
 Thins Blood
 Helps Protect Against Strokes
 Provides Pain Relief
 Reduces Inflammation
 Act as a Therapeutic Relaxant
 Helps Clear Congestion
 Limits Spreading of Prostate Cancer
 Helps burn fat
 Provides Vitamin C
(wound healing and immune function)
 Provides Vitamin B6
(energy metabolism)
 Provides Vitamin K1
(for blood clotting and healthy bones and kidneys)
 Provides Potassium
(essential dietary minerals)
 Provides Copper
(for bones and healthy neurons)
 Provides Vitamin A
(Beta-carotene)
D.1.4 Packaging and Labels

The company will use a 120-ml or 4-oz glass bottle to prevent short shelf life of
the chili sauce. It is covered with a black cap to make it look elegant. It is sealed for
longer shelf life and to keep the product sanitary. The company used a minimalist design
for the logo sticker; the mushroom and the chili represent the main ingredients that the
company uses to make the product. The green, yellow, and red chilies identify the level
of 'heat' in the sauce which is crucial to have a variety for a broader net to capture a wider
range of consumers.
D.1.5 Varieties and Sizes
Chilencio’s Mushroom Chili Sauce comes only in a 120-ml or 4-oz glass bottle
with lid and seal.

D.1.6 Warranties and Returns
It is the policy of VPM Company to permit customers to return spoiled products.
They have a choice of having their money refunded or getting a new product of their
choice as replacement plus another one for free. For longer life span, it is advised that
they keep Chilencio’s Mushroom Chili Sauce refrigerated.
D.2. Pricing
ORIGINAL

INGREDIENTS UNIT COST

Soya Oil 3 cups 9.57
Garlic 3 cups 7.22
Mushroom Powder 6 tbsp 4.22
Paprika 2 tsp 0.95
Red Finger F1 Chili 1/2 cup 2.22
Cane Vinegar 4 tsp 0.52
Brown Sugar 3 tbsp 0.33
Oyster Mushrooms 200 grams 8.89
TOTAL 33.92
OVERHEAD EXPENSE
Electricity 10 mins 0.001
Gas 1 hour 5.23
Fare back and forth 10.22
Labor 4 hours 24.67
TOTAL 40.121
EQUIPMENT EXPENSE
Food Processor 10 mins 0.006
Stove Top 1 hour 0.003
Pot 1 hour 0.001
Blower 15 mins 0.001
TOTAL 0.011

Container 4 oz 12
Seal 1 pc 0.4
Product Label 1 pc 3
TOTAL 15.4

Cost Per Bottle 89.45
Mark Up 0.5
Mark Up Price 44.73
Selling Per Bottle 134.68
WESTERN
Garlic 1 cup 2.17

Red Finger F1 Chili 1/2 cup 2

Onions 1 1/2 cup 3.38
Brown Sugar 14 tbsp 1.4
Oyster Mushrooms 3 cups 8.98
Cane Vinegar 4 tsp 0.47
TOTAL 28.91
OVERHEAD EXPENSE
Gas 3 hours 14.12
Labor 4 hours 22.2
TOTAL 45.521
EQUIPMENT EXPENSE
Stove Top 1 hour 0.003
Pot 1 hour 0.001
TOTAL 0.011

Container 4 oz 12
Seal 1 pc 0.4
TOTAL 15.4

Mark Up 0.5
Mark Up Price 30.47
ASIAN
Black Pepper 3 tbsp 0.2

Ginger 1 cup 4
Red Finger F1 Chili 1 1/2 cup 7
Oyster Mushrooms 1 1/2 cup 6
Tomato Paste 150 grams 1.7
Brown Sugar 1/4 cup 1
Water 3/4 cup 0.35
Garlic 2 cups 4.33
Rock Salt 0.05 kilo 0.002
TOTAL 36.362
OVERHEAD EXPENSE
Gas 1 hour 4.71
Labor 4 hours 22.2
TOTAL 36.111
EQUIPMENT EXPENSE
Stove Top 2 hours 0.006
Pot 2 hours 0.002
TOTAL 0.014

Container 4 oz 12
Seal 1 pc 0.4
TOTAL 15.4

Mark Up 0.5
Mark Up Price 43.94
Chilencio’s Mushroom Chili Sauce is priced reasonably and an economical choice for a
higher standard of chili sauce variant. With its packed full of health benefits and

nutritious ingredients as well as bold flavors, it will give the customers a run for their
money. A great and economical choice of condiment!
D.3 Place of Distribution
As a start-up, Chilencio is having the product available at a family-owned store in
our neighborhood in White Plains Village, Quezon City. Chilencio Mushroom Chili
Sauce will also be available online for delivery and pick-up purchase. The team is also
planning to join bazaars, trade show events, sample tasting events organized by The
Philippine Hot Sauce Club to make our product visible and have a great deal of exposure
to our targeted market.
D.4 Promotion
The VPM Company promotes their product through online ads and promotion and
created social media accounts like Facebook and Instagram specifically dedicated to
Chilencio PH. Chilencio can post product information, introductory promotions, as well
as creative ads to entice the market in purchasing and patronizing our product. Also,
flyering and business card distribution to promote and introduce our product to students
and professors in their respective classrooms of SPUQC and distribution of business
cards and flyers in White Plains residents. Lastly, sampling is one of the company’s
promotions to introduce its products by joining trade show events such as the monthly hot

sauce tasting organized by the Philippine Hot Sauce Club. Through sample tasting,
Chilencio gets exposure from different target markets and earn a following.
SOCIAL MEDIA SITES: Facebook and Instagram

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PRODUCT PRESENTATION (SPUQC – September 15, 2017)
PHILIPPINE CHILI FESTIVAL 2017 (New Manila, Quezon City – September 17, 2017)


THE GROVE BY ROCKWELL: WEEKEND BREWS AND HOT SAUCE TASTING

(October 6-7, 2017)

SURVEY

SWOT Analysis
PERFECT MUSHROOM’S SWOT ANALYSIS
Strengths Weaknesses
Established with the following:  Different kinds of chili sauce
 Trusted name in the industry. are being sold everywhere,
 Produce own mushroom making it easier for
supply. consumers to buy.
 Large market share.
Opportunity Threats
 Large network of enterprise  Known companies have easy
and partners access to consumers in
 Open for distributors and introducing new products.
resellers.
 Conducts seminars and
workshops for cultivation
 Pre-order online for pick-ups
and delivery.
HEIRLOOM MUSHROOM’S SWOT ANALYSIS
 Produce own mushroom  Some consumers don’t
supply. have the patience of
 Large market share. ordering and waiting for
the product.
Opportunity Threats
 Open for distributors and  Growing mushroom
resellers. industry with new offering
 Conducts seminars and from competitors.
workshops for cultivation.  Established competitors
 Mushroom Growing with loyal customers.
Webinars.  Smaller network of
 Pre-order online for pick- enterprise and partners.
ups and delivery.
GMCS MUSHROOM’S SWOT ANALYSIS
 A strong support  Retail price is quite high
from SMEs and compared to other competitors.
start-ups.
Opportunity Threats
 Offers different  Growing mushroom industry
variants of food with new offering form
for a wider competitors.
market.  Established competitors with
 Pre-order online loyal customers.
for pick-ups and  Smaller network of enterprise
delivery. and partners.

CHILENCIO’S SWOT ANALYSIS
 Reasonable and  Developed product with a
economical price. limited budget.
 A newly developed  Smaller market share than
product for chili sauce existing competitors.
lovers.
Opportunity Threats
 Expect a cultural exotic  Fairly new in the food
marriage of flavors in each condiment business.
flavor variant.  Established competitors
 Will bring a curiosity to with loyal customers.
chili heads and foodies of
all types.
 Build in opportunities for
adopters and influencers
who like to be the first in
line to try the hottest new
thing.
 A strong support from The
Philippine Hot Sauce
Club.
 Pre-order online for pick-
ups and delivery.

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Submitted to the faculty of

St. Paul University Quezon City

In Partial Fulfillment for the Requirements

Of the Degree of Bachelor of Science in

Business Administration Major in

Abilla, Mary Angelika Paije Ashley J.

THE MARKETABILITY OF CHILENCIO

A. Overview of the Study

serving the dish.

THE MARKETABILITY OF CHILENCIO

Not just your regular chili sauce.

advantages and uniqueness of the product over competitors, feasible merchandising

The major purpose of this market research is to know the marketability of

condiment of our specific respondents and prospecting customers in White Plains

Village, Quezon City.

THE MARKETABILITY OF CHILENCIO

condiment sauces is expected to witness a Compound Annual Growth Rate (CAGR) of

expected to touch US$23.29 billion by the end of 2020.

THE MARKETABILITY OF CHILENCIO

GROWTH OF CHILI SAUCES AGAINST OTHER SAUCES

THE MARKETABILITY OF CHILENCIO

well across the world.

competition from foreign manufacturers and new industry entrants.

THE MARKETABILITY OF CHILENCIO

Computation for getting the respondents for survey

Quezon City Population 2,936,1216

Quezon City Population (District 3) 325,304

Young Professionals (20-34) 792,150

Mid-Age (35-64) 788,442

Sample size used S=___N___

Margin of Error 10% (0.1)

TD = 325 304 = 8792

THE MARKETABILITY OF CHILENCIO

YP: 27% = 2374

MA: 27% = 2374

THE MARKETABILITY OF CHILENCIO

External Environmental Scanning

be gained from it.

THE MARKETABILITY OF CHILENCIO

attitudes, behaviors, opinions, and preferences. Also, it represents how

we are shaped as individuals and manifests how each of us behave, act,

react, and even on what we buy among preferences.

 In creating a product or even a service, an organization must consider

how it will benefit a person’s lifestyle as well as complementing

considered essentials in food pairings, dipping sauce, rubs, add on

ingredients to a dish that will surely spike a person’s appetite

 Automation – Machine automated equipment help manufacturers,

distributors, suppliers, retail stores, supermarkets, and other type of

businesses in reducing cost and help in faster production and delivery

of goods and services.

 Chilencio will be using a food processor for a faster and efficient

production of goods. By using a food processor, it is ensured that each

morsel of ingredients are equally portioned and within sanitized. To

THE MARKETABILITY OF CHILENCIO

cap seals are sealed using a hair blower.

 To build strategies, businesses analyze economic factors based on its

 To determine the direction where the economy is moving, one should

consider inflation rate, interest rates, monetary or fiscal policies.

 Foreign exchange affecting import and export products.

percentage of markets to tap locally and internationally that business

may be open for import and export of goods.

 DTI (Department of Trade and Industry)

Sample size used S=_N_