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EXECUTIVE SUMMARY
What are the project’s contributions to the local and national economy?
The business aims to earn profit and help our local farmers at the same time.
The goal is to promote products that is made from Philippines and for the
business to have an opportunity to export products to other countries too. Not
only it will make an impact in the tourism industry but also in business industry as
well.
Farmer’s Coco Sugar is a brand of coconut sugar that offers two propositions: First,
that coconut sugar is organic, and that it is a better alternative to white sugar, especially
for those who are watching their sugar levels. But, what further sets it apart from other
sweeteners in the market, most especially from its direct competitors, is that Farmer’s
Coco Sugar sources its product from KAMMPIL AGRICOOP, a cooperative
based in Jaro, Leyte that is composed of small-time coconut farmers. In addition
to that, 15% of the profit of the business shall also go back to the said cooperative,
may it be in monetary form or its equivalent, through seminars and equipment donations.
The business will be located in Bazaars, farmer’s, Sunday markets and even school
events will be utilized to reach consumers.
The product has 2 variants: 250 g (jar), and 1 kg (plastic packaging), selling for Php 180
and Php 400 per unit respectively.
The business will utilize social media as its main outlet for marketing, using both
business-to-business and business-to-consumer strategies to sell. Online order forms will
be released, with meet-up locations and the option of delivery (cost shouldered by buyer).
The process consists of six stages: selection of tree and mature inflorescence for tapping;
collection of coconut sap; heat evaporation; conversion of sap syrup to coconut sap sugar;
sieving and drying; and weighing and packaging.
B. What are the sources of raw materials? Are they available throughout the year?
C. How many direct and indirect labor are needed and what skills should they have?
The basis for charging the cost is the number of hours of labor actually used in the
production process, the farmers are qualified enough for the skills that is needed for
the production because of their skills and experiences.
D. What overhead expenses are involved? (2points)
Overhead expenses:
Delivery/transportation
Marketing (social media boosts)
Poster prints
Consignment fee
Guide Questions:
The process of development for Farmer’s Coco Sugar was designed to execute the
value proposition of the product, namely to offer the consumer healthier
alternatives to processed white sugar while returning back to the local farming
communities. In order to ensure maximum positive feedback for initial release,
multiple FGDs shall be held. This is also to perfect and continually improve the
marketability, and increase its recognizability to the target market. In addition to this,
surveys shall be conducted to ensure that the product is priced according to the
willingness to pay of the consumer.
The business also plans to partner with couriers and various brick-and-mortar stores to
make the value chain more efficient and to make the product more accessible to
consumers. Staying true to its heart, the business also aims to expand by contacting
various other cooperatives that meet the same standard of process and quality.
C. What are the business experience and qualifications of the entrepreneur?
Suitable qualifications for an entrepreneur include:
an entrepreneur's vocational qualification, the aim of which is to strengthen
the entrepreneur's business skills. The qualification is also suitable
for entrepreneurs who have already been working as such for a long time, and
want to redirect the business eventually.
The product must be promoted properly by defining its health benefits and also
the intention of the business to help our local farmers. By that, promoting through
social media is one of the factors to be considered. Finding the right location to
put the business is also the top priority to reach the target market.
Introducing the product from events is also an activity the must be undertaken for the
business to fully operate and expand.
The total capital requirement is 40,000 pesos in order for the business to operate.
b) Is a loan needed? How much will be the equity contribution of the entrepreneur?
No loan will be executed due to the risk of the competition in the market. The 30,000 pesos will serve as
the equity contribution of the entrepreneur.
We can estimate the return of investment from the data derived from the financial plan, the business’
capital investment will return as estimated at least 6 months-1 year of the business operations.
Given the health incentives and nutritional attributes, coco sugar is observed to have increasing
demand. Organic coconut sugar is naturally made from extracts and contains no chemicals, which is
one of the reasons people prefer this product. Organic coconut sugar is also gaining popularity as an
ingredient in bakery products and beverages. Nutritional attributes and increasing health awareness
are expected to remain the key growth drivers of the organic coconut sugar market for the forecasted
period. Growing consumer awareness towards health and rising demand for plant-derived
products is likely to have a positive impact on the industry growth.
On the basis of distribution channel, the market is segmented into store based such as
supermarkets & hypermarkets, specialty stores, food processing industries, and others, and
non-store based.