SCHOOL OF BUSINESS, HOSPITALITY AND TOURISM MANAGEMENT

A Feasibility of Putting Up A “Fruitylicious” At Xentro Mall Calapan, Oriental Mindoro

In Partial Fulfillment of the Requirements in Entrepreneurial Management

Submitted by:

Agutaya, Chrystelle Moreen

Barangco, Karla Jean A.

Hernandez, Kahlil Philistia

Ramos, Pearl Joy J.

Rojas, Jennifer A.

Submitted to:

Ms. Claudette G. Sim

Instructor

March 2020
 SCHOOL OF BUSINESS, HOSPITALITY AND TOURISM MANAGEMENT

APPROVAL SHEET

In partial fulfillment of the requirements for the Entrepreneurial Management subject, this
undergraduate paper entitled “A Feasibility of Putting up Fruitylicious in Xentro Mall
Calapan, Oriental Mindoro” has been prepared submitted by Chrystelle Moreen Agutaya,
Karla Jean A. Barangco, Kahlil Philistia Hernandez, Pearl Joy J. Ramos, Jeniffer Rojas.

Accepted and approved as the partial fulfillment of the requirement in Entrepreneurial

Management.

Approved by:

MS. CLAUDETTE G. SIM

Adviser

PROF. SHIRLEY I. MENDOZA, AMEd.,DBF.,PhD.

Dean, SBHTM

ACKNOLEDGEMENT

We would first and foremost like to thank our Adviser Ms. Claudette G. Sim who
provided essential guidance, for her patience, motivation, enthusiasm and immense knowledge
that helped us in all the time of writing of this feasibility study. She has taught us the
methodology to carry out this study and to present it as clearly as possible.
 We would also like to extend our sincere gratitude to our groupmates and to our friends,
for the stimulating discussions, for the sleepless nights we were working together before
SCHOOL OF BUSINESS, HOSPITALITY AND TOURISM MANAGEMENT
deadlines and for motivating us all throughout the study.

Our acknowledgement would be incomplete without thanking our biggest source of

strength, our family, who have all made an invaluable motivation and for putting up with us in
difficult moments where we felt stumped, and for their unwavering and selfish love and support
given to us at all times.

DEDICATION

We would like to dedicate this work to our parents whose dreams for us have resulted in
accomplishing difficult things. Had it not been for our parents’ unflinching insistence and
support our goals of surpassing challenges and excelling in education would have remained
dreams.
 SCHOOL OF BUSINESS, HOSPITALITY AND TOURISM MANAGEMENT

Table of Contents

Chapter I

INTRODUCTION

A. Background
B. Purpose of the Study
C. Social Desirability
D. Methodology
E. Projected Time Table*
F. Definition of Terms*

Chapter II

MARKETING ASPECTS

I. Nature and Extent of the Market

A. Past Demand
B. Past Supply
C. Projected Demand
D. Projected Supply
E. Demand Gap
F. Market Share*
II. Marketing Strategies
A. Target Market
B. Product
C. Pricing and Costing
D. Promotion, Place, Process, Physical Environment
E. People
 SCHOOL
Chapter III OF BUSINESS, HOSPITALITY AND TOURISM MANAGEMENT

TECHNICAL ASPECTS

A. Product Description
B. Product Schedule
C. Location
D. Layout
E. Total Projected Cost

Chapter IV

MANAGEMENT ASPECTS

A. Vision
B. Mission
C. Goals
D. Types of Business Organization
E. Organizational Chart
F. Job Requirements
G. Qualifications, Duties and Responsibilities
H. Benefits of Manpower

Chapter V

PERMITS AND LISCENSE

Chapter VI

FINANCIAL ASPECTS

A. Sources of Funds

B. Basic Assumption
C. Projected Financial Statements
D. Financial Analysis

Chapter VII

SUMMARY OF FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

A. Summary of Findings
B. Conclusions
 C. Recommendations
SCHOOL OF BUSINESS, HOSPITALITY AND TOURISM MANAGEMENT

Chapter I

INTRODUCTION

A. Background

The food industry is one of the leading businesses throughout the world, may it be fast
food joints, fancy restaurants, street foods or even small food stalls. It is never out of demand
since it is one of the basic needs of human beings. It is said that your food choices today will
affect your health tomorrow. Intuit Research Director Thomas Isaac said that “eighty percent of
adults in the Philippines are not really satisfied with their health due mainly to poor food habits;
eighty-one percent admitted to eating unhealthy snacks between meals. Being armed with the
knowledge of what we should eat might not be enough to win the battle against making poor
food choices. Price and convenience often outweighed health as a main reason why most people
choose unhealthy foods.

The attempts to eat healthier are still restricted to the basics of drinking more water and
eating more fruits and vegetables. The World Health Organization (WHO) and Food and
Agriculture of the United Nation reports recommend adults to consume at least five servings of
fruits and vegetables per day. Sufficient intake of fruits and vegetables has been associated with
a reduced risk of chronic diseases and body weight management.

The province of Oriental Mindoro, one of the five provinces that make up the
MIMAROPA region, is being eyed as the country’s foremost food supplier, according to
Agriculture Secretary Emmanual Pinol. Seventy percent of the province’s population is engaged
in agriculture and it is able to produce large quantities of rice, corn, coconut, vegetables and
fruits.

Our business ‘FRUITYLICIOUS’ bears the vision of providing fun, deliciously

appetizing food and beverage products while maintaining our commitment to uncompromised
quality at economical rates with a purpose of catering society’s needs, taste and preference and
high nutritional value.
 Fruit dips as our main product is a slices of variety of fruits (such as apple, banana, ,
pineapple, grapes, watermelon, mango, etc.) combined with a healthy dip of Greek yogurt. Greek
SCHOOL OF BUSINESS, HOSPITALITY AND TOURISM MANAGEMENT
yogurt differs from other yogurts because it goes through a straining process to remove the whey
which makes it low in sugar and rich in nutrients such as calcium, protein, probiotics, iodine and
vitamin B-12 which promotes bone health, boosting metabolism, lowering blood pressure and
reducing type 2 diabetes. Yogurt is lighter and less sweet than the other ones made with
marshmallow cream or pudding mix.

Aside from healthy fruit dip ‘FRUITYLICIOUS’ will also develop healthy shakes from
fresh fruits (such as mango, avocado, and squash). The healthy shake will provide our customers
with an almost endless amount of healthy alternatives to the other drinks. Most shakes you can
find today are made of powdered flavors for convenience taking nutrients for granted. Our shake
is different from others because it is made of fresh fruits, non-fat milk, and green stevia as
sweetener.

Consuming non-fat milk can make food even healthier, because it eliminates saturated
fats, much of the cholesterol and some of the calories found in whole milk or low-fat milk.
Removing fat from milk increases the relative nutrient level for some food components, which
makes it an easy addition to one’s balanced diet. It gives nutrition to those who put importance to
managing to control their weight and staying fit.

We use green stevia as a sweetener. It is an all-natural food supplement that is said to be

300 times sweeter than ordinary sugar. Proven by experts, green stevia has zero calories, zero
fats, zero sodium and zero cholesterol.

Our business will not promote health alone but also it will take advantage of the
province’s investment opportunity. Oriental Mindoro is known as the ‘Fruit Basket’ of Southern
Tagalog. With the province’s rich and arable land, it continues to thrive under an agricultural
economy producing large quantities of fruits especially banana. Therefore, it will open new
opportunities for the local farmers.

The business’ target location is Xentro Mall Calapan, located at Brgy. Lumangbayan.
The mall is considered to be Calapan’s first class mall featuring Robinson’s Department store,
supermarket, appliance center, fast food chains, cinema and etc. making it the most visited mall
in Calapan. Having its good location, it becomes accessible to market and with its substantial
number of customers our business can attract more potential customers than it will in other
location or mall.

B. Purpose of the Study

General Purpose
  To know the feasibility of establishing a Fruitylicious business in Xentro Mall,
Calapan City, Oriental Mindoro.
SCHOOL OF BUSINESS, HOSPITALITY AND TOURISM MANAGEMENT
Specific Purpose

 To know the demand of fruit dips and fruit shake in Calapan City
 To promote healthy snacks to its target market
 To know if the marketing strategy will be effective to our target market during our
operation
 To identify the total cost of materials and equipment that will be needed in the
business
 To know the percentage of return of investment to the proponents.

C. Social Desirability

This business institution will be a good source of income to our city government through the
different payments such as claiming business permit and registering in some government
agencies as a requirement for the legitimacy and legal operation. This business will serve as one
of the fund raising contributor by paying taxes annually in the Bureau of Internal Revenue.

The City of Calapan has a large population of that eat snacks every day. There are many
emerging food stalls offering a variety which is in good status and according to them, they are in
good operation in terms of profit.

The survey provided a large amount of information that illuminated consumer purchasing
habits and their willingness to buy the product. Hence, the researchers settled to a decision to
establish and continue to satisfy the demands of the market.

D. Methodology

The proponents used different ways and techniques in gathering data to come up with the
proposed study. In order to have a better idea, the proponents listed all the concepts that each
member have discussed, suggested and voted for their final business that has not been highly
established here in Calapan City. Here, a business that can provide a fresh and delicious product
using healthy ingredients.

The proponents first asked for the total number of population in Calapan City from the
Urban Planning and Development office. In order to determine the sample size, the proponents
used the Slovin’s formula and prepared survey questionnaires constructed by them. In the
conduct of the survey the proponents gathered around public places where people usually go and
distributed the questionnaires to 399 randomly selected respondents. After the results were
tallied, it shows that 99.75% of the respondents are willing to buy to our proposed business.
SCHOOL OF BUSINESS, HOSPITALITY AND TOURISM MANAGEMENT
The proponents choose to put the business at Xentro Mall, Calapan City and inquired for
the rental cost of their chosen store location. They interviewed the competitors of the proposed
business to determine the past supply of healthy snack/drink. In able to determine the past
demand, the estimated consumers from the past five years were multiplied to the average
consumption per year in peso. The proponents used regression analysis and time series to get the
projected demand and supply.

E. TIME TABLE

F. DEFINITION OF TERMS
1. FRUITYLICIOUS- fruitylicious is used as a combination of two words “fruits” and
“delicious” meaning delicious fruits.
2. FRUIT DIPS- fruit dips are slices of different fruit served with a yogurt dip.
3. FRUIT SHAKE- fruit shake are shakes that is freshly made from fruits, non-fat milk
and green stevia having no artificial flavor.
4. GREEK YOGURT- this yogurt goes through a straining process to remove the whey
which makes it low in sugar and rich in nutrients such as calcium, protein, probiotics,
iodine and vitamin B-12
5. GREEN STEVIA- It is an all-natural food supplement that is said to be 300 times
sweeter than ordinary sugar
6. NON-FAT MILK-
7. SNACK-
8. FOOD HABITS-

II. MARKETING STRATEGIES

A. TARGET Market
Fruitylicious found its niche in the market by providing fresh and affordable products to
people of any age who often spend time in the mall during free time or food breaks or even after
shopping. Also, those people who live near the mall can have an easy access to products offered
in the newly built stall. Fruitylicious will offer a variety of freshly cut fruits prepared at the stores
and its commissary ensures that the products are delivered to the store are of the freshest quality.
These will be made possible through strong internal research and development, marketing team,
and supply chain. After conducting the research and proving if the project is feasible, it will be
ready for some expansion by coordinating some event organizers’ services and offering a
customized package fit for everyone’s needs, from birthday parties to corporate events.
A. PRODUCT
SCHOOL OF BUSINESS, HOSPITALITY AND TOURISM MANAGEMENT
Banking on the trend of healthy living in the Philippines, Fruitylicious is a snack and
beverage stall that will offer invigorating and freshly cut fruits dipped into various sauces and
also fruit shakes and will open its first stand in Xentro Mall, Calapan City, Oriental Mindoro.
This store will provide a quality and clean fruit snack and beverage which will fuel the needs and
wants of consumers for their lifestyle goals.

C. PRICING AND COSTING

Fruit Dips
PARTICULARS PRICE
Fruits PHP 16,500.00
Greek yogurt PHP 3,800.00
Clear clamshell food packs (6x6 in.) PHP 1,000.00
Small plastic ramekin cups PHP 500.00
TOTAL PHP 21,800.00

In every PHP 21,800.00, it can produce 1,000 pieces of fresh fruit juice.

Fruit Shakes
PARTICULARS PRICE
Plastic cups with Flat Lid PHP 3,750.00
Green Stevia PHP 7,500.00
Fruits PHP 16,500.00
Water PHP 1,230.00
Straw PHP 750.00
Tissue PHP 666.00
Ice PHP 350.00
Non-fat milk PHP 3,300.00
TOTAL PHP 34,046.00

In every PHP 34,046.00, it can produce 1,000 pieces of fresh fruit juice.

 The prices of the products offered to the market are pocket-friendly.

  Economy Pricing
 SCHOOL
The priceOF
for BUSINESS,
fruit dips will HOSPITALITY
be: PHP 40.00 perAND
container.
TOURISM MANAGEMENT
 The prices for fruit shakes will be: 12oz. – PHP 65.00, 160z. – PHP 85.00

Original Price Mark-up Price (25%) Selling Price

Fruit Dips per container PHP 30.00 PHP 40.00
Fruit Shake (12 oz.) PHP 48.75 PHP 65.00
Fruit Shake (16 oz.) PHP 63.75 PHP 85.00

 PROMOTION

For the advertising strategy, mass media will be given much importance and will be
available in our product launching. We will be displaying tarpaulin in front of our stall
after the business has been established. Likewise, social networking sites will also be
utilized as we will post our available products and will provide information for more
inquiries about our business.

 PLACE

The proposed business location is located at the food court, second floor of Xentro Mall,
Roxas Dr, Calapan City, Oriental Mindoro.

This location is accessible to all suburban areas in the city, composing of prime
commercial establishments, buildings, schools, and hotels.

 PROCESS

Customers will simply fall in line in front of our stall and then choose their orders and
then. The assigned crews will prepare each order and will call the customers to pick their
orders thereafter.

 PHYSICAL ENVIRONMENT

We intend to maintain the cleanliness in all areas of the stall all the time. The stall’s
ambiance is made attractive and catchy to the eyes of the customers. Also, the store will
be well-organized so that the whole food and beverage processing will run smoothly.
  PEOPLE
SCHOOL OF BUSINESS, HOSPITALITY AND TOURISM MANAGEMENT
As a newly established business, Fruitylicious will strive to have an efficient and
effective workforce. To achieve this, it will develop its core organizational structure in
improving employee skills. It will have in-house trainers and facilities in the premises for
the continuous training and development of its employees. Hiring includes different age
groups from 18 years and above with educational attainment and will serve as front-
liners.

BUSINESS NAME

Fruitylicious is derived from the word “fruits” and “delicious” since our proposed
business is about using fruits as our main product (fruit dips and fruit shake). We turned these
fruits as appetizing delicious snacks without sacrificing its nutritional value.

BUSINESS LOGO

PRODUCT
 Fruitylicious stall will offer deliciously appetizing food and beverage products
particularly Fruit dips and Fruit shake. This store will provide a quality and clean fruit snack and
SCHOOL OF BUSINESS, HOSPITALITY AND TOURISM MANAGEMENT
beverage which will fuel the needs and wants of consumers while promoting healthy eating
habits.

PROCESS

Process of Making Fruit dips

First wash the fruits and peel if necessary. Second slice the fruits using the fruit slicer.
Third, prepare the Greek yogurt dip in a small container and lastly arranged the fruit slices in a
clear food packs.

Process of making Fruit Shake

First, peel the fruits (mango/ avocado/ squash) then remove the seeds. Third slice the fruit
and put it in the blender. In the case of squash, boil it first until soften and put it in the blender.
Next put ½ cup non-fat milk, 1 tsp of green stevia, crushed ice and a little amount of water.
Fasten lid of blender and use high speed for about 20-30 seconds and check to see if the
ingredients are well blended and lastly serve it in a plastic cup.

PRODUCT OUTPUT

Product Preparation time Raw materials Output per day

Fruit dips 5 mins Slices of apple, 100
pineapple, grapes,
and banana; Greek
yogurt dip
Fruit shake 5 mins Fruits, non-fat milk, 100
green stevia, ice,
water
LOCATION OF THE BUSINESS
SCHOOL
BUILDING OF BUSINESS, HOSPITALITY AND TOURISM MANAGEMENT
LAYOUT

RAW MATERIALS

TOOLS AND EQUIPMENT

MACHINERY

SUPPLIES

UTILITIES

PERMITS AND LICENSES

TOTAL PROJECT COST

CHAPTER V

FORM OF BUSINESS ORGANIZATION

ORGANIZATIONAL STRUCTURE

MANPOWER REQUIREMENTS & QUALIFICATION

DUTIES AND RESPONSIBILITIES

GENERAL MANAGER- oversee the activities of workers such as food preparation, portion
sizes and overall presentation of food; hire, train and evaluate new employee

PRODUCTION CREW- Manages the inventory and order supplies of raw materials, equipment
and supplies completes food preparation, customer transaction and sanitation jobs.

SALES CREW- Responsible in taking orders and process payments

WAGES AND SALARY

General manager monthly salary 8,346 annual salary 100,160

Employee 1 monthly salary 7,381 annual salary 8,8579

Employee 2 monthly salary 7,381 annual salary 8,8579
SCHOOL OF BUSINESS, HOSPITALITY AND TOURISM MANAGEMENT
BENEFITS

MONTHLY ANNUALLY

SSS 1000 12000

PHILHEALTH 200 2400

PAG IBIG 200 2400

SUMMARY OF FINDINGS

The market projection of this business is based on surveys conducted and other related
information gathered within the vicinity of Calapan. Projection of demand, supply, and sales for
the first five years of operation is based on the different factors like the population growth,
market acceptability, capacity to supply and other factors. This study is feasible because our
target population are willing and capable of availing our products.
SCHOOL OF BUSINESS, HOSPITALITY AND TOURISM MANAGEMENT
The products that we are going to offer are healthy snacks with high demand and
nutritious for our customer. Our products are fruit dips and fruit shakes that is 100% made of
healthy ingredients. Raw materials, machinery, tools and equipment were enumerated as well as
other supplies with their corresponding cost. The project is feasible on the different aspect that
we consider in operating this business

Fruitylicious is a partnership form of business ownership which will handle the

management of the business. There is a store manager who is overall in charged for the day-to-
day operation of the business and two other employees who is in charged for food preparation,
customer transaction and sanitation jobs. Through an organized organizational structure, there
will be a smooth operation of the business and also based on the technical know-how of the
managers, therefore, this business is feasible in this aspect.

The initial investment of Fruitylicious is Php 1,000,000 which came from the partner’s
contribution to establish this business. There are no other sources of capital aside from their
contribution. The return of asset will be -------- at first year and the payback period will be
exactly------. Therefore, our financial study is feasible.

CONCLUSIONS

In terms of marketing aspect, the proposed healthy food stall has a strong demand in the
market among the age group of 15-35. This age group consists mostly of middle class, young
professionals and students. It is projected that its sales will grow along with the growth of the
population and the prospects of fruit industry. Its product quality—100% fresh and healthy,
competitive price, good location and store design—in Xentro Mall Calapan situated in Brgy.
Lumangbayan; and effective marketing strategies will surely attract the target customers.

On the technical aspect, Fruitylicious will serve two kinds of products—fruit dips and
fruit shake, meeting the preferences of its target market. The business is feasible in terms of its
technical aspect. This is because the business location is strategic, which is the Xentro Mall
Calapan. It will also be able to meet the other technical requirements like utilities, machine and
equipment, manpower, raw materials and supplies. Production is efficient because the raw
materials are widely available and affordable, thus the estimated production volume will be
certainly achieved.

As to the management aspect, partnership is appropriate, in which the partners will

manage the business and be the source of fund. As such, fullest attention to every detail of
business, particularly in the management of funds and the entirety of business will be ensured.
The proposed business has an available source of 3 competent personnel as hiring will be guided
by a well-defined personnel job qualifications and description. Also the personnel’s salaries and
SCHOOL OF BUSINESS, HOSPITALITY AND TOURISM MANAGEMENT
benefits to be offered will be competitive to other players in the industry.

The business is also financially feasible. The owners can put up its initial investment
without borrowings. Based on its projected financial statements, it will be very profitable taking
into account the gross profit of----% from year 1 reaching -----% on year 5. The operating
expenses are expected to decrease annually, from ---% to at least ----% in the succeeding years.
Also based on the calculation of the payback period, the investment on Fruitylicious will be
recovered in ---- years only.

RECOMMENDATIONS

The business will be named Fruitylicious as it will proudly serve deliciously appetizing
fruits and it will recall fruits as a good snack. In order for the business to consistently run and
maintain its high demand in the market, it should employ moderate pricing, quality products and
take advantage of an attractive store design, ambiance and location to lure its target market. It is
also recommended to

As to the technical aspect, the business should maintain a clean environment from the
preparation, serving and to its food containers. The business should also invest in durable
machineries and equipment for the longer use.

On the management aspect, the owners should take time to oversee the business and its
activities. They should invest in staff, people that are enthusiasts, eager to learn and develop as
they represent and sell the image of the business.

In terms of financial aspect, the business owners should keep costs as minimum as
possible but do not cut corners in order to maintain the quality standards and its value.
 SCHOOL OF BUSINESS, HOSPITALITY AND TOURISM MANAGEMENT

BIBLIOGRAPHY

Food and Agriculture Organization (2013). Challenges and Issues in Nutrition Education.

http://www.fao.org/docrep/017/i3234e/i3234.pdf [Google Scholar]

Ghaz, S. (2019). Job Application Requirements: 8 Common Documents for Employement

https://philnews.ph/2019/03/01/job-application-requirements-8-common-documents-

employment/

Medical News Today (2018). 8 Health Benefits of Greek Yogurt.

https://www.medicalnewstoday.com/articles/323169.php

MIMS Today (2017). Oriental Mindoro to Become Philipiines’ Food Production Capital-DA

https://today.mims.com/oriental-mindoro-to-become-philippines--food-production-

capital---da

SFGATE (2018). Healthy Eating.

https://healthyeating.sfgate.com/benefits-nonfat-milk-6069.html

The Philippine Star (2016). Philippine One of the Asia’s Most Unhealthy Countries

Williams J. Stevia Nutrition Information.

https://www.livestrong.com/article/297393-stevia-nutrition-information/
World Health Organization (2014). Obesity and Overweight
SCHOOL OF BUSINESS, HOSPITALITY AND TOURISM MANAGEMENT

Q1

ESTIMATED PAST CONSUMERS

18%

82%

1 2

taste preference
1 2 3 4 5 6 Q3
3%

25%
26%

13%

13%

18%
 SCHOOL OF BUSINESS, HOSPITALITY AND TOURISM MANAGEMENT

Q4

Chart Title

33%

52%

3%
3%
6%
3%

1 2 3 4 5 6

Q5
 Chart Title
SCHOOL OF BUSINESS, HOSPITALITY AND TOURISM MANAGEMENT
1 2

4%

96%

Q6

Chart Title
1 2

2%

98%