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Section 1

MARKET STUDY

A. PRODUCT/SERVICE DESCRIPTION

Banana is one of the most common and widely grown fruit crops in the

Philippines. It is also one of the country’s major dollar earners. Banana has various

uses. The ripe fruit is pureed, candied, and preserved in various forms when not eaten

fresh. Its extract is used in the manufacture of catsup, vinegar, and wine. The unripe

fruit is powdered and chipped. Banana fruit is a horticultural commodity that can be

processed and preserved to expand its marketing value. Various processed banana

products have already been developed, such as, sun-dried banana and banana crispy.

A new product with a potential commercial value that the team want to introduce

is the BanaBread made from fresh and ripe banana. According to Philippine Star, the

bread sales had increased 6-7% due to higher demands. And as experienced in the

recent years, demand for bread industry is continually increasing due to factors which

include convenience affordability and changing lifestyle. The trend of health and

wellness shift the demand to go upward because a lot of people choose to go to healthy

lifestyle. In our survey conducted among the five factors that affect the purchasing

choice of our respondents, nutritional value ranks the highest factor they consider in

purchasing bake foods.

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The team would want to introduce “BanaBread” in the market because the team

envisioned putting up stores highlighting the use of Banana in every product they can

create like pies, cakes, and other delicacies. Especially various types of bread with the

use of banana making its industry much broader and in turn will array as one of the

most excellent food products.

BanaBread wants to distress the purchasing influence of most of the residents of

Barangay 3 Em’s Barrio, Legazpi City as it is offering an affordable price and

addressing health and wellness trends in our product offerings. At ages 3 years old and

above is the target market of BanaBread, professional or not, male or female and

people of different walks of life.

BanaBread considers all types of people in all ages, what places they came from

and no matter what their gender and religion either who have high or low income can be

the target market that can be one of the potential buyers for the benefits of the potential

customers, the team extend their time and effort to differentiate and understand the

needs, wants and their preferences in order to meet the satisfaction of the innovated

product.
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TABLE 1

HISTORICAL DATA

YEAR POPULATION
2014 1,051
2015 1,072
2016 1,093
2017 1,115
2018 1,137
Source:Barangay 3,EMS Barrio, Legazpi City, 4500.

Table 1 shows the historical population in Barangay 3 Em’s Barrio, Legazpi City. The

secretary of the said barangay told us that the annual increase rate is 2%. This is how

we computed the table above.First we multiply the population of 2014 by 2% then add

again the population of the said year.

N
Sample Size: n=
1+ ( Ne )2

1137
n= 2
1+ ( 1137 ) (.07 )

1137
n=
6.5713

n=173.025∨173 respondents
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B. DEMAND

Since then the production of bread in the city has high demands based on

different surveys. The target market of this are all people in the Barangay 3 Em’s Barrio,

Legazpi City and the target place is within the place of Em’s Barrio. Below is the table

that shows the historical demand for Bread for 2019 up to 2023.

TABLE 2

DEMAND ANALYSIS

YEAR POPULATION WILLINGNES TO FREQUENCY DEMAND

BUY (90%)

2019 1,137 1,023 144 147,312

2020 1,160 1,044 144 150,336
2021 1,183 1,065 144 153,360
2022 1,207 1,086 144 156,384
2023 1,231 1,108 144 159,552
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C. SUPPLY

Business exists in a competitive environment. Bakeries are in fierce competition

with each other to provide the best possible value for money, high quality and

appetizing breads, and to offer the most suitable range of products for their customers.

Competitions on typical breads are commonly offered by bakeshops. They are really net

worthy about their profit and customer satisfaction, but not into making the community

health wise. The fact that the value of its bread is affordable yet it consists of only a few

of nutrients that our body need is somewhat deceiving ourselves.

TABLE 3

PROSPECTIVE COMPETITORS

COMPETITOR YEARLY
Julie’s 13,440
Ben’s 15,120
Jn Bakery 18,480
ALbay Bakery 20,160
Mang Emong Pandesal 23,520
TOTAL 90,720

The table shows the proposed business competitors within the area of EM’S

Barrio and stated also are the total number of their savings in a yearly basis in the year

2018.
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TABLE 4

PROJECTED SUPPLY

It shows the projected supply for the next 5 years which is said that every year there is

an increase of 2% daily customer who is assumed to buy from them.

YEAR PROJECTED ANNUAL SUPPLY

2019 92,534
2020 94,385
2021 96,273
2022 98,198
2023 100,162

Projected Supply and Demand for Bread, Bicol Region, 2019 – 2023

D. DEMAND – SUPPLY ANALYSIS

The table shows the comparison of the demand and supply trends. The table also

shows the determined unsatisfied or the gap.

TABLE 5

DEMAND AND SUPPLY GAP

YEAR DEMAND SUPPLY GAP MARKET SHARE

90%
2019 147,312 92,534 54,778 49,300
2020 150,336 94,385 55,951 50,356
2021 153,360 96,273 57,087 51,378
2022 156,384 98,198 58,186 52,367
2023 159,552 100,162 59,390 53,510
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E. PRICE STUDY

The prices of the Banana Bread products will be dependent on how the market price

of the main ingredients. Any change of the price of the banana bread products will be

taken into consideration to the factor that measures the consumer’s capability to

purchase the product.

TABLE 6

ITEM QUANTITY SELLING DAILY SALES MONTHLY YEARLY SALES

PRICE SALES
BanaBread 3,000 pcs Php 2.00 Php 6,000.00 Php 180,000.00 Php 2,160,000.00
Pandesal

SALES FORECAST

The table shows projection of sales after taking into account the capacity of the

business. With the nutritious, delicious and affordable kind of fbread offered, the

proponents came up with the selling price and daily quantity to arrive at the monthly

sales. The table shows the sales forecast for one (1) year.

F. MARKETING PROGRAM (4Ps)

Product

Pandesal is a bread roll made of flour , yeast, sugar, and salt. It has become a common

food item in the Philippines. Pandesal originally started as a plain roll, traditionally

served for breakfast and accompanied by butter, cheese, and scrambled eggs. As with

most commercially produced food items, Pandesal vary in quality to meet the taste
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requirement and economic standards of various communities. The business will employ

direct selling where in the end consumer will buy from the “BanaBread”

Price

TABLE 7

COSTING

INGREDIENTS QUANTITY UNIT COST TOTAL COST

Bread flour 40 kilos Php 32.00 Php 1,280
Bread crumbs 4 ½ kilos 200.00 400.00
Sugar 5 kilo 45.00 225.00
Salt 250 grams 5.00 5.00
Yeast 200 graams 105.00 105.00
Egg 45 pcs. 5.00 225.00
Shredded Banana 10kg 30.00 300.00
Lard 1 kilo 60.00 60.00
Margarine 1 kilo 48.00 48.00
TOTAL Php 530.00 Php 2,648.00
Source : Robinsons Supermarket, Old Albay Legazpi City

Total Cost Php 2,648.00

Yield (pcs) 3,000___
Cost per unit .88
Add: Mark-up (130%) 1.14___
Selling Price 2.02 or Php 2.00

Place

“BanaBread” will be strategically located at Purok 7 Barangay 3 Em’s Barrio, Legazpi

City that will be very accessible to the prospective customers. The bakery covers the
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population of 1st to 7Th Purok of Barangay 3 Em’s Barrio . It was negotiated that the

monthly rental is Php 3,000.00 per month and the cost of renovation shall be

shouldered by the proponents. The place will be rented with 3 year contract.

Promotion

Signboard will be hung bearing the name of the bakery. The proponents will distribute

leaflets near the church, plaza, school, and public offices near the place of the business.

For packaging, bakery will use brown paper bags.

TABLE 8

PROMOTIONAL COST

ITEM QUANTITY UNIT COST TOTAL COST

Tarpaulin (3x5 ft.) 1 pc. Php 370.00 Php 270.00
Poster 50 pcs. 2.00 100.00
Leaflets 100 pcs 2.00 200.00
TOTAL Php 570.00

Table 8 shows the total advertising expenses and also indicates the items to post in

promoting the proposed business.

FIGURE 1

Business Logo
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Section 2

PRODUCTION/TECHNICAL STUDY

Section 2 is the study of the project in terms of processes, materials to be used,

programs and procedures. It is a very effective tool for long term planning and sighting

problems in the business. Also product specifications and the product processes using

the flow chart. The technical feasibility should most essentially support the financial

information of an organization.

Product Description

All bakery products and ingredients thereof shall be stored, handled, transported and

kept so as to protect them for spoilage, contamination, disease and unwholesomeness.

Boxes and other permanent receptacle or containers for storing, receiving or handling of

bakery products shall be placed and constructed as to be beyond the reach of

contamination from streets, alleys and sidewalks and from animals and shall be kept

clean and sanitary by the bakery.

Banabread has a competitive advantage since it will be beneficial among the residents

and it will assure the customers that there is a stable supply of bread within the locality.

The health benifits of bread are the ability to improve the quality of your sight, build

storng bones, strengthen the immune system, prevent cancer, protect heart health,

reduce sympthoms of insomnia,and reduces blood pressure, and can contain more than

100% of daily requirement for vitamin A.

PRODUCTION PROCESS
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FIGURE 2
BREAD PRODUCTION FLOW CHART

The chart elaborates the production process which starts with the preparation of

ingredients. Then these ingredients are mixes and kneaded then left for an hour and a

half for fermentation controlled conditions. After the desired time, the dough is punched

down and then cut into a desired weight or size. Sizes are cut given the same time to

ferment and when it researches its desired size, the dough is finally baked in oven for

twelve to fifteen minutes.

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Figure 3
SERVICE FLOW CHART
Figure 3 shows the service flow and the service process of the proposed

business. The flow chart shows the different service processes that are required for its

actual operation. The first step is taking the customers orders, and payment. Then the

bread will be served, once they have paid.

Raw Materials
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The raw materials for bread are flour, bread crumbs, water, salt, sugar, yeast, eggs,

lard, margarine and banana.

TABLE 9

RAW MATERIALS

ITEM QUANTITY UNIT COST TOTAL COST

Bread flour 40 kilos Php 32.00 Php 1,280.00
Bread crumbs 4 ½ kilos 200.00 400.00
Salt 250 grams 45.00 5.00
Sugar 5 kilos 5.00 225.00
Yeast 200 grams 105.00 105.00
Margarine 1 kilo 60.00 48.00
Lard 1 kilo 48.00 60.00
Eggs 45 pcs. 5.00 225.00
Banana 10 kilos 30.00 300.00
TOTAL Php 530.00 Php 2,648.00

Table 9 showed the list of raw materials that are needed in the production of
BanaBread.

Supplies
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The following are the list of operational items that would be needed in bakery store.

TABLE 10

PACKAGING

ITEM QUANTITY UNIT COST TOTAL COST

Brown Paper 225 pcs. P 1.00 Php 225.00
TOTAL Php 225.00

TABLE 11

EQUIPMENTS

ITEM QUANTITY TOTAL COST USEFUL LIFE DEPRECIATION

Industrial oven 1 pc. Php 22,000.00 5 years Php 4,400.00
Electric fan 1 pc. 975.00
LPG 2 tanks 2,000.00
TOTAL Php 24,975.00 Php 4,400.00

The total cost of the machineries and equipment is also presented with the useful life
and depreciation amount.

TABLE 12
FURNITURES AND FIXTURES

ITEM QUANTITY UNIT COST TOTAL COST

Chairs 2 pc. Php 115.00 Php 230.00
Display rack 1 pc. 2,500.00 2,500.00
Working table 1 pc. 5,000.00 5,000.00
TOTAL Php 7,730.00
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The table 12 shows the furniture and fixture that the proponents will be using in the
bakery.

TABLE 13

TOOLS

ITEM QUANTITY UNIT COST TOTAL COST

Rolling pin 2pcs.. Php 219.75 Php 439.50
Measuring cup 1 set 79.75 79.75
Measuring spoon 1 set 69.00 69.00
Spatula 2 pcs. 60.00 120.00
Egg whisk 2 pcs. 339.75 679.00
Kitchen scale 1 pc. 249.00 249.00
Dough cutter 2 pcs. 92.00 184.00
Stainless tray 10 pcs. 179.75 1,797.00
Tong 2 pcs. 169.75 339.50
Mixing bowl 3 pcs. 599.75 1,799.25
Mixer 1 unit 15,000 15,000
TOTAL Php 20,875.50

Table 13 shows the itemized tools needed in bakery.

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TABLE 14

OFFICE SUPPLY

ITEM QUANTITY UNIT COST TOTAL COST

Ball pen 5 pcs. Php 7.00 Php 35.00
Record book 1 pc. 43.75 43.75
Sales invoice 15 pcs. 25.00 375.00
Calculator 1pc. 799.00 799.00
Scissor 1 pc. 25.00 25.00
TOTAL Php 1,278.50

Table 14 presents the office supplies needed in the operation of the business, both

consumable and non-consumable that will be used to ensure its smooth operation. Ball

pens and record book will be purchased by the proponents to record the sales and

possible expenses that can be incurred in the business. Receipts which will be

approved by the Bureau of internal revenue or BIR will be used to pay the right taxes to

the government. Computation will be much easier and faster if there is a calculator that

will ensure that the customers will get correct change for their payment. An office supply

has a total cost of Php 1,278.50.

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TABLE 15

CLEANING SUPPLIES

ITEM QUANTITY UNIT COST TOTAL COST

Soft broom 1 pc. Php 56.75 Php 56.75
Hard broom 1 pc. 63.75 63.75
Trashcan 2 pcs. 92.75 185.50
Dustpan 1 pc. 74.75 74.75
Rugs 2 pcs. 10.00 20.00
Dormat 1 pc. 27.00 27.00
Pat holder 2 pcs. 35.00 70.00
TOTAL Php 497.75

Table 13 includes the cleaning supplies needed in the operation of the business. The

proponents want the business to maintain proper sanitation to assure the customers

that the store is clean as well as the bread being sold. And it has cost of Php 497.75.

Quality Control

To maintain the quality of the products, the business will conduct daily control strategies

to ensure that the business activities rendered meet desirable standards. The baker will

be oriented on food handling techniques and facility sanitation. The equipment to be

used in the production must be cleaned daily, before and after it is used to avoid

customer complaints.
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The operation of the business will comply with the sanitary requirements imposed by the

minucipality and health offices. The bakers shall be wearing their respective uniforms

including hairnets and hand gloves in order to maintain the cleanliness and orderliness

condition of the business.

Utilities

The proposed business will help its source of electricity supply from the Albay power

and energy corporation (APEC) with unestimated cost of Php 530.99for its monthly bill.

The estimated kilo watt hour used is 36 and the estimated rate Php 14.7498. the water

will be at Php 217.00 as minimum. Total amount of monthly utilities is Php 747.99.

Waste Disposal Scheme

The waste materials will be properly manage. The biodegradable and non-

biodegradable wastes will be disposed separately and properly to help promote

environmental friendliness. The proponents will be using compost pit for biodegradable

and trash cans for non – biodegradable waste and if it can still be used, it will be

recycled.
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Section 3

ORGANIZATIONAL AND MANAGEMENT

This section presents the form of business organization, vision, mission/goal,

capitalization, organizational structure, duties and responsibilities, compensation

scheme, and Gantt chart.

FORM OF BUSINESS ORGANIZATION

The ownership of the proposed business shall be in the form of a partnership. The

proposed business shall be managed and operated by the proponents; Marwin B.

Barcelon and Cheska R. Ogao

The partners shall work as a team and participate in all activities of the business. Under

the set up, each proponent has an equal sharing of the financial contributions, property

and industry to a common fund. The partners are expected to share in the profits and

losses of the business. Being in the form of general partnership, both partners are liable

for the partnership debts.

VISION, MISION, AND GOALS

Vision

To become a well – known bakery brand name in our country which serves a nutritious

fruit bread.
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Mission

To offer nutritious and affordable vegetable bread and to motivate unemployed people

to plant vegetable and increase its production.

Goal

 To gain profit.

 To have branches.

CAPITALIZATION

The business proponents decided to be in a partnership form which covers the

sharing of money or property. The proposed project will have a starting capital of Php

405,086.03 and funds will be sourced out from the personal account of the proponents.
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ORGANIZATIONAL STRUCTURE

The organizational structure is a line type of organization. The proponents themselves

will be the employees and will hire a baker to help the proponents run their business.

a
ti
r
p
O
M
e
k
C
a
h
c
-
n
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FIGURE 4

Organizational Chart

DUTIES AND RESPONSIBILITIES

Operations In - charge

The operations in - charge will be responsible for the over-all operations of the

business. She will be responsible for the decision making and purchase of new

materials and will ensure smooth flow of the production process.

Marketing In-charge

The marketing in-charge will be responsible for the promotion, keep records of daily

transaction for financial management purpose, determining the demand and supply of

the products and responsible for implementing strategies for the business.
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Baker

The duty of the baker is to bake variety of breads, checking the raw materials to be

purchase, ensure deliciousness in bake items to attract customers.

Qualifications:

 Male, 18-25 years old

 With pleasing personality and good moral character

Helper

Assisting the baker and preparing and mixing the ingredients for baking

Compensation

TABLE 16

SALARIES

PERSONEL DAILY MONTHLY ANNUAL

SALARIES SALARIES SALARIES
Operations in-charge Php 250.000 Php 7,000.00 Php 84,000.00
Marketing in-charge 250.00 7,000.00 84,000.00
Baker 200.00 5,600.00 67,200.00
Helper 200.00 5,600.00 67,200.00
TOTAL Php 900.00 25,200.00 Php 302,400.00

Table 16 presents the compensation scheme for the proponents and for the baker and

helper. The payment of salary shall be on a daily basis.

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LEGAL REQUIREMENTS

TABLE 17

PERMITS AND LICENSES

ITEM QUANTITY
Mayor’s permit Php 400.00
Sanitary and health permit 555.00
Fire and safety 140.00
Barangay permit 125.00
BIR 500.00
SEC 1,000.00
Documentary stamp 15.00
Business plate 300.00
TOTAL Php 3,035.00

Table 17 shows the list of legal requirements and its corresponding amount amount like

permits and licenses needed in the operation of the business.

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Gantt Chart

Ju Jul Aug Sept Oct Nov Dec Jan Feb Mar

Activities
n
Feasibility Study
Preparation
Capital Sourcing
Business

Registration
Renovation
Promotion
Hiring of

Baker/Helper
Purchase of

Equipment,

furniture and

fixture, and

supplies
Start of operation

The gantt chart presents the business operation and implementation. June to October is

the preparation of the feasibility study. October to December is sourcing of capital.

January is for resgistration of the business likewise January is the renovation of the

business. Febuary is for promoting the business among the target market, hiring a
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baker / helper and purchasing the equipment, furniture, and fixtures, and supplies

needed in the operation of the business. March is the start of operation.