Republic of the Philippines

DEPARTMENT OF SCIENCE AND TECHNOLOGY

PHILIPPINE SCIENCE HIGH SCHOOL - CAGAYAN VALLEY CAMPUS
Brgy. Masoc, Bayombong, Nueva Vizcaya

CHICKEN PITS
Located at Philippine Science High School - Cagayan Valley Campus
Brgy. Masoc, Nueva Vizcaya, Philippines

Name Position Contact Details

0927 504 9835
Agcaoili, Richard Francis Manager
rftagcaoili@cvc.pshs.edu.ph
0956 553 4916
Santos, Reigh Seigfred Accountant
rsgsantos@cvc.pshs.edu.ph
0966 551 0208
Maningas, Julia Augustine Advertising Director
jajmaningas@cvc.pshs.edu.ph
0917 308 8789
Navarro, Andrea Noelle Manager
andreanoellen@gmail.com
0956 851 9899
Simplina, Kythe Lexxan Marketing Director
Kythe.lexxan@gmail.com
0915 049 0894
Tajon, Jaiven Kamylle Logistics Officer
jktajon@gmail.com

October 18, 2019

I. Business Description
A. Industry Overview
 Chicken Pits Corporation specializes in chicken care, production, and processing to obtain goods
that they can offer to their clientele, which is the Philippine Science High School Cagayan Valley
Campus (PSHS-CVC) community. The corporation is pioneered by six students from the Agriculture 1
Elective. Chicken Pits was initiated by the students as their project for their Elective, which concerns the
processing and vending of goods made from chicken by-products. Their services will be available within
the campus for the second quarter of the academic year 2019 to 2020 (October 28 to December 2019).

Chicken Pits is guided by the principle “think global, act local” as the men behind its curtains
consider the impact of their actions to the market of chicken byproducts while they strive to promote it to
their local community.

B. Business Description

Chicken Pits will offer a variety of delicacies that encompass both street food and home-made
treats from poultry byproducts. Various poultry derivatives, like chicken intestines, duck eggs, chicken
blood, and chicken feet, are especially chosen as the main ingredients for most of the available dishes,
such as isaw, balut, betamax, adidas, and chicken eggs. Chicken Pits caters to the members of Philippine
Science High School Cagayan Valley Campus in Brgy. Masoc. Bayombong, Nueva Vizcaya, and their
products are available in the same location. Their services will be administered by six students from the
Agriculture 1 Elective throughout the second quarter of academic year 2019-2020 (October 28 to
December 2019).

C. Mission, Vision, and Objectives

Chicken Pits aims to:

 Produce nutritious eggs

 generate employment
 create wealth for investors
 Personally distribute processed chicken byproducts to PSHS-CVC
 Provide easily accessible goods to the clientele

Vision:

 To build a mechanized poultry that is efficient and rewarding

 To make the patronization of goods from chicken byproducts widespread in its target
location, which is PSHS-CVC
D. Critical Success Factors

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 In order to successfully launch and maintain Chicken Pits, there are several factors that must be
paid heed, such as:

 Buyer preferences – The goods offered must be in line with the preferences, specifically
food options, of the clientele in order to attract buyers.
 Product Quality – The Corporation is to prove its worth with the products it promotes
since these products hold the name of the business. The products must be more than
passable to ensure that the customers will not be dissatisfied.
 Cost-effectiveness – The products must be cost-effective or “worth it” to provide a good
business climate for the corporation and to keep buyers from shying away from
purchasing the products sold.
 Seller’s disposition – The sellers have to be approachable and accommodating. Attitude
is one of the most important factors because it can make or break the whole process. It
builds the mood and either invites or drives away buyers
 Capital – The money and the supplies expended to make the final goods have to be
prepared on time to make sure that there will be no hitch and a possible loss of income in
the delivery of goods and services.
 Preparing for the unexpected – unprecedented situations may arise anytime and
anywhere. When it comes businesses that hold many risks, they can have detrimental
effects that are aimed at one main problem: loss of income.
E. Company Ownership

The company is managed using corporate governance that allows each member to be entrusted
with a specific role and to have a say in how the business is run. The leaders – the managers – have the
responsibility to direct the other members so that goals are achieved and standards are followed. The rest
of the members, on the other hand, are assigned to fulfil certain duties that encompass the pre-launching
to the closing stage. The ownership of the corporation is shared, and the expenses and profit will be
distributed equally among the owners.

II. Products/Services

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 A. Product/Service Description

Chicken by-products are one of the most sold ones in markets and supermarkets. Almost all the
parts are being bought and sold, since those parts have uses and many ways to be cooked and prepared.

Egg products that will be sold are tokneneng (chicken egg), kwek-kwek (quail egg), hard-boiled
eggs, egg pie, eggs in a basket, and fresh eggs for stores like RLA or COOP. Chicken meat products that
will be sold are nuggets and arrozcaldo. Chicken organ products are isaw (chicken intestine), betamax
(blood), adidas (chicken feet), and chicken skin.

Quail eggs, isaw, betamax, adidas, chicken skin, nuggets, fried chicken, egg pie, toast, and
arrozcaldo will be bought from different suppliers since we wouldn’t be able to process the products we
will be selling.

B. Unique Features/Propriety Aspects of Product/Service

Eggs that will be sold are organic and are good for our health. The eggs we will also be selling to
different stores are fresh. We will ensure that all the other products we will be getting from other
suppliers are clean and will be safe for everyone to consume.

C. Research and Development

Kwek-kwek coatings will be made by us. Researches will be made by the group to try to do their
best in doing the coatings that are the same with professional vendors. Recipes will be followed in
making the different products we aim to sell.

There have been other developments in other egg products like penoy and balut. Penoys,
nowadays, are chicken eggs instead of duck eggs because duck eggs are lacking (Yuan, 2010). Based on
surveys and interviews, people don’t notice the difference regarding the taste, which is an advantage for
penoy dealers and sellers, since chicken lay eggs every day.

D. Production

Egg production are enough from the chickens we are managing. The eggs we get from the
chickens are sure organic, since the feeds are checked and need to be a source of energy for them. The
production of the other supplies, we’ll be getting from different suppliers since our products are very
diverse and one supplier will not be enough.

III. The Market

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 The school caters the students’ nutritional feed by the support of the school’s COOP. This serves
as one major opponent when it comes to the market we are entering in. Other internal competitors include
the RLA which is only accessible via text message when ordering food, SaveMo which is also accessible
only through direct yet distanced conversation since student’s are not allowed to go beyond the gate and
the other business group (rabbit) which is assured that they will sell different food products. In shorter
terms, the choice- whether what to buy and what to consume, still lies on the consumer. Moreover, the
group expects to share more than 25% of the small market.

The business will market its products through social media sourcing and printed fliers that will be
posted every classroom to invite consumers. Although we plan to stand a stall for our market, we will still
entertain deliveries on a classroom-to-classroom basis; in short, it will carry out in a direct sale force.

The school’s COOP marketing strategy is methodical and effective. For their meals- breakfast,
dinner and lunch, they have called upon the help of the ManCom of the school to make the meal
reservation of the students to be compulsory. This, however, has been effective even up to this day.
Hence, they earn with assurance. For the snacks, the COOP have positioned in one of the two kubos in
Academic Building 2 since the building is far from where the COOP is located. This reason alone makes
the student not to take their snacks in the canteen and some opt to just order by the RLA via text message.
Even though the COOP settled in the lower Academic Building, students still view their prices as
‘overpriced’ yet unhealthy and unappetizing. With these, COOP’s strategy is slightly competitive.

For the outside vendors, their products and its subsequent price competes greatly in the market.
SaveMo sells turon for only 10 pesos, lugaw for only 20 pesos and sopas also for 20 pesos. RLA also
sells meals and snacks. They have pancit canton for 25 pesos, ‘sulit’ rice meals for up to 120 pesos,
‘nakakabusog’ sandwiches up to 80 pesos, canned sodas and bottled water for 50 pesos below on their
menu.

In comparison to all of the apparent competitors, prices highly pressure the school’s COOP
whereas, the outside vendors highly challenge the later said business. Our business, moreover, presents
generally low prices at arguable satisfaction.

IV. Marketing Strategies and Sales

The Chicken Pits will strive to sustain the company’s vision and mission by employing the
following strategies. Marketing strategies will seek to create customer awareness regarding the products

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offered, develop the customer base, then work towards building customer loyalty. The owners seek to
communicate the message that they can provide high-quality and safe poultry by-products.

A. Market Segmentation Strategy

Through segmentation, the business can identify which part of the market it primarily caters to,
its needs, and opportunities for improvement. The small-scale business will be implemented in a school
community with approximately 500 students, along with the faculty and staff. It caters mostly to students
since they cannot leave the school premises and eat what the market has to offer.

While the company's location in Nueva Vizcaya is within the PSHS-CVC community,
prospective customers emanate from multiple provinces such as Cagayan, Isabela, and Quirino. There are
both male and female customers in this market segment. Categories of age include adolescents and adults
at the age of 12 and above. The market features students with the ability to purchase products with low,
medium, and high funds. These students have reached the secondary level of education (high school). In
terms of psychographics, the market features consumers with an array of lifestyles.

B. Targeting Strategy
Specifically, the target market would be from Grades 10 to 11. The owners excluded Grades 12
because they are located at the new Academic Building 3, thus, they are remote from the business
location. Grades 7 to 9 are also located at Academic Building 1, so they are far from the business.
However, during school-wide occasions, the target market will be the whole Pisay community.

C. Positioning Strategy
The Chicken Pits will market itself as a student-run enterprise providing safe, healthy, and high-
quality food for high school students in Philippine Science High School. To meet our mission and vision,
we must promote our business and its menu using promotion and advertisement strategies to convince
other students and try and continue consuming our products and services. The business can be considered
the nearest canteen to the customers if the supposed location (Academic Building 2 Grounds) would be
approved for use.

D. Product/Service Strategy
As a food service business, Chicken Pits will serve common and savoury food products after
hours of work. The business product mix has the following main product lines: fresh and cooked egg
products, organ products, and full meals. Refer to the Part III. Products/Services for a more detailed
description.

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 E. Pricing Strategy
The three most common pricing strategies are penetrating, skimming, and following. We have to
set a low price; however, we still must gain profit. Therefore, we have to calculate potential expenses and
our target revenue. Prices will also be based on the equilibrium price of the market as a whole. There is a
constraint to this because in addition to a low price, we should set notable statement and standard for our
product.

Prices would vary depending on the existing market price of chicken meat, eggs, and other by-
products. Stores in which the owners will buy the ingredients may change their prices; Therefore, the
owners must consecutively increase their prices. However, we will try to maintain the equilibrium prices
of our goods to make sure customers can still purchase within their budget. Some of our products’ prices
will be listed below. Arrozcaldo with egg will be P25. Nuggets will be P35 per cup at 4/5 nuggets each.
As we compete with other businesses near, the owners must level with their usual prices.

F. Distribution Channels
As the business is small-scale and is limited in management resources, the owners will be doing
direct sales. The direct-sales channel is appropriate because they have access to customer and keep all
revenue under the owners’ control.

G. Promotion and Advertising Strategy

As the owners promote the business, they must choose dissemination strategies in which they can
guarantee positive feedback. Given the context and situation, they can use the following strategies.

Posters, with permission from authorities, will be displayed in the Academic Buildings of PSHS-
CVC. Posters can guarantee an increase in consumer demand for chicken products, because students and
teachers alike, pass by through the halls every day. Posters can also be placed inside the school’s
dormitories to reach a larger audience who still don’t know about the business.

Consumers share their thoughts to acquaintances through chit-chats and gossips. Personal word-
of-mouth advertisements spread rapidly in the PSHS-CVC community and this will most likely get our
business booming. The owners will try announcements during flag ceremonies during Mondays to further
boost our promotion strategies.

Social media significantly expands a business. Setting up a Facebook page or a Twitter account to
publicize the menu of the day, or the whole business in general, will reach more audience. The business is

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 also aiming to collaborate with the Supreme Student Government (SSG) of the campus to talk about
further improvements.

H. Sales Strategy
As the owners are all Grade 11 students, their schedules do not match with those of recent
batches Grades 7 to 9. Therefore, to also meet their demands, the owners can walk around the campus and
sell what they can during school-wide occasions. The owners will also manage the store directly during
free time at the Academic Building 2 grounds to meet demands of Grades 10 and 11.

During special events like ALA Festival or Intramurals, there will a space allocated for the
students in the gymnasium. A main booth will be set up where we prepare all products, while some
students walk around the event vicinity.

V. Management
A. Business Organization

MANAGERS
Richard Francis T. Agcaoili
Andrea Noelle N. Navarro

ADVERTISING DIRECTOR LOGISTICS OFFICER ACCOUNTANT

MARKETING DIRECTOR
Julia Augustine J. Jaiven Kamylle B. Reigh Siegfried G.
Kythe Lexxan M. Simplina Santos
Maningas Tajon

The management team is composed of five positions: The managers, the marketing director, the
advertising director, the logistics officer, and the accountant. The position of manager shall be taken on
by Richard Francis T. Agcaoili and Andrea Noelle N. Navarro. As managers, they are expected to make
sure that the tasks of the other members are done effectively. They are also in charge of the products to be
sold: from its preparation to its packaging. The remaining positions are all under the management of these
two. The marketing director, Kythe Lexxan M. Simplina, will be responsible in planning and executing
the different marketing strategies to be used in the business. She will also take charge in the pricing of the
products. The marketing director is important in assuring that the way of selling is effective in such a way
that the group will actually earn profit, and be able to take back the capital invested. The advertising
director, Julia Augustine J. Maningas, is in charge of creating the advertisements and planning on the

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strategies (such as the platforms involved) to be used to target and inform the buyers. The position of
logistics officer, to be taken on by Jaiven Kamylle B. Tajon, is in charge of contacting the suppliers of the
different products that the group will be needing for the business. The role is crucial in assuring that the
products are always kept in stock. Reigh Siegfried G. Santos is the accountant of the group. He is
responsible of all the financial related matters including auditing, financial collection, and safe-keeping
the money.

B. Management

The business shall be managed by the seven members of the chicken group, themselves.
Although there are specifically assigned managers as discussed in the ownership section of this paper,
each of the members are to manage a specific aspect of the business: The marketing director for the
marketing strategies, the advertising director for the advertisements, the logistics officer for the supplies,
and the accountant for the financial aspect. The whole team will be responsible when it comes to the
selling, itself. The business shall be run under a group effort and collaboration. Each of the members has a
crucial role in the management of this corporation.

C. Management Structure and Style

The management structure is presented and explained in the business and organization part of this
paper through an organizational chart. In this business, a participative (democratic) style of management
shall be used. In this kind of management style, everyone has an input in decision making. This is perfect
for the type of set-up the business has where in each member has a say in the business in general. The
exact way the management of the business is to work is explained in the management part of this paper
(which comes just before this). Each member plays an important role in managing the business, it’s just
each is just more focused in a specific aspect. With each aspect working well, the business will do well.
This management style is effective for it assures that no aspect will be left behind.

D. Ownership

The business is considered a corporation in which it is independent with multiple shareholders.

These shareholders are the seven members of the chicken group who are to contribute for the capital to be
used for the business. Eventually, the money invested by these shareholders shall be returned to them
along with the profit gained in selling. All seven shareholders, no matter what position they take on in the
business, have equal rights in this corporation.

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 Furthermore, as a corporation, the business also has a number of competitors when it comes to its
products and services. These competitors include the RLA eatery which is located in front of the campus
and the PSHS-CVC cooperative.

VI. Operations
A. Operations Strategy

The group has reached a resolution wherein all students contribute on the initial funds, cleaning
and maintaining the shelter, feeding the chickens, sales, and advertising. In addition to the superior roles
stated in Part V. Management, each member is encouraged to share his/her thoughts on a process. All
members are also encouraged to join and help other students in performing their designated task.

B. Scope of Operations

The business shall run from October 28, 2019 to December 13, 2019, Monday to Friday, during
breaks, lunch breaks, and other available free time. It shall operate, mainly, on campus yet is also open
and available for outside customers through any of the members of the business team. The products shall
be displayed in one of the nipa huts in the academic building 2 grounds during operation hours. The
business is, however, also open for pre-order from the customers.

C. Location

The location of the business is within the Philippine Science High School community. Academic
Building 2 grounds will be used for a usual work week. During school-wide events like ALA Week, a
pop-up store will be set-up at the Gymnasium.

D. Personnel

The business will not hire additional personnel to manage the store. However, if there will be a
need for help, the owners will approach other students and assign responsibilities for them. Although the
usual staff would be the students themselves. There will be a scheduled timetable if needed.

E. Production

The group will tend to cooped chickens that will be one of the main sources of the products to be
sold. The chickens will be fed with corn grits, commercial feed, or grass twice a day and their water
supply will be sanitized and replenished twice a week. Two roosters will exchange places – one caged or

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shackled while the other is not – every week to restrict territorial fights and to facilitate mating. Their
cage will be cleaned depending on visual checking. The eggs will be collected while they are fresh to
prevent the development of embryos and fetuses. All these will comprise a cycle until the eggs good for
selling are sufficient. However, the total supply of by-products that can be obtained from the 10 chickens
(two roosters and eight hens) cannot stand against the demand of the PSHS-CVC community because
their population is far greater. This entails the need for external sources. Items to be bought from
suppliers outside will make up for the shortages. The goods to be sold by the group will either be bought
from outside then sold as they are or processed by the group itself.

F. Operations Expenses

From our daily sales, there will also be expenses such as commissions of the laborer,
transportation and travel, and even general expenses. The laborer will be paid with a commission for
monitoring the products we will sell. The expenses for the travel of the supplier will also be included.

G. Inventory

To operate at the locations, the group must set-up a “booth”. To provide freshly cooked food,
during hectic schedules, there should be a deep fryer. To maintain cleanliness, garbage bags will be
placed around the vicinity. For customer satisfaction and to be a high-quality business, we must provide
tissues and utensils when needed.

Quantity
Table 1
Chair 2
Deep fryer 1
Garbage bags 1 roll
Tissue 35 rolls
Utensils 1 pack

H. Suppliers

Products that we will be selling are very diverse—some are street foods, some are for snacks, and
some are considered as meals. Since we wouldn’t be able to process all the products by ourselves, we will
be getting such from different suppliers, who specialize or make these products; isaw, quail eggs,
betamax, adidas, chicken skin, and nuggets are the examples. Other products like egg-in-a-basket will be

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needing toast and the tokneneng and kwek-kwek will be needing flour for their coating, so for such
products, we will be buying those in supermarkets like SaveMore and SM Supermarket.

VII. Financials
A. Start-Up Funds

Start-up funds will be from the pockets of the students themselves. Their monthly stipend
contributes significantly to the capital. For a visual representation, refer to the table below. The students
invested for the chickens, chicken pen materials, and the maintenance of the chickens.

Price
Chicken (6 chickens) ₱250 ₱1500
Feeds ₱2220 ₱2220
Net ₱900 ₱900
₱4620

B. Estimated Expenses

Quantity Price Estimated expenses

Tokneneng 1050 ₱8 ₱8400
Kwek-kwek 1050 ₱15 ₱15750
Egg pie 1050 ₱25 ₱26250
Eggs in a basket 700 ₱12 ₱8400
Nuggets 1050 ₱30 ₱31500
Arrozcaldo 1050 ₱20 ₱21000
Isaw 1050 ₱12 ₱12600
Betamax 1050 ₱12 ₱12600
Adidas 700 ₱18 ₱12600
Chicken Skin 700 ₱12 ₱8400
P157500

C. Operating Forecast

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 Quantity Price Estimated expenses

Transportation 35 ₱150 ₱5250

Labor 35 ₱200 ₱7000
TOTAL ₱12250

D. Estimated Profit

Quantity Price Estimated earnings

Tokneneng 30 ₱10 ₱10500
Kwek-kwek 30 ₱20 ₱21000
Egg pie 30 ₱28 ₱29400
Eggs in a basket 20 ₱15 ₱10500
Fresh eggs 30 ₱6.5 ₱975
Nuggets 30 ₱35 ₱36750
Arrozcaldo 30 ₱25 ₱26250
Isaw 30 ₱15 ₱15750
Betamax 30 ₱15 ₱15750
Adidas 20 ₱20 ₱14000
Chicken skin 20 ₱15 ₱10500
₱191375

E. Summary of Finances

Estimated capital ₱174370

Estimated gross income ₱191375
Estimated net income ₱17005
Estimated earning per member ₱2834.17

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