1

Chapter 2
MARKETING PLAN

A. Product/Service to Sell

Cooked Uncooked

Goraballs is a meatball made from edible snails locally known as

‘susongkulot’ or ‘susongpilipit’ with the scientific term Ovoviviparous

freshwater gastropods mixed with minced carrots, onion, garlic, Chinese

parsley, potato, egg, and seasoned with pepper. The name is derived from

the snail’s scientific family name “Jagora” and term “meatballs” hence,

Goraballs. Additionally, its name sounds like the popular urban lingo

‘gorabells’ which is commonly used by the local people in the Philippines.

The researchers opted to use the name Goraballs not only because it is a

combination of the family name of its main ingredient but also because it is

catchy and easy to remember.

 2

The researchers aimed to create a product that is unique, healthy and

is made from indigenous ingredient with a mixture of healthy vegetables.

The edible snail, which is particularly rich in protein, vitamins, minerals and

lectin – an anti-cancer agent, is an indigenous ingredient used in the native

cooking in some regions in the Philippines and is innovated into a new

recipe in the form of meatballs. Also, the edible snails have a stable supply

as it is available all-year round and found in rivers and are budget-friendly.

Moreover, this research can benefit the local sellers of shellfish in the

country.

The main advantage of Goraballs is the health benefits that it

possesses. The nutritional benefits of Goraballs’ ingredients are as follows:

Snail

 Is a great source of the valuable lectin, possesses anti-cancer

properties, and helps in boosting the immune system and

fighting against cancerous cells especially for blood type A

people
 3

 According to the 2009 International Journal of Food Safety, it

is an excellent and inexpensive source of protein and iron for

children and young mothers

 Contains low carbohydrate content which is ideal for people

who are on a low-carb diet

 Healthier than red meat due to its low fat and cholesterol

content

 Rich in vitamins and minerals such as Vitamins A, E, B12, K,

Choline, Calcium, Potassium, Iron, Magnesium, Phosphorus,

Sodium, and Zinc, among others

 Can be effective in the treatment of ailments such as cancer,

kidney failure, tuberculosis, anemia, diabetes and infertility

 Also good for individuals suffering from vertigo, fainting fits

and fits of madness

According to healthyeating.sfgate.com, for every 100 grams of snail,

there is an amount of protein that is favorably comparable with that of

seafood. Additionally, it only contains about 1.4 grams of fat which is

composed of slightly more unsaturated fat or the ‘good fat’. A 100-gram

serving of snail supplies 3.5 mg of iron which is more than the iron content
 4

of beef with a 6-ounce serving. A serving of snails contains about the same

amount of potassium as beef, 382 milligrams, as well as 250 milligrams of

magnesium, far more than beef, chicken, pork or fish, which provide about

30 milligrams of magnesium.

Potato

 Lowers blood pressure

 Enhances learning and memory

 Helps digestion due to their high fiber content

 Helps restore electrolyte balance

 Keeps skin smooth

 Helps maintain proper heart functioning

 Reduces free radical

 Reduces inflammation

Carrots

 Helps prevent heart disease

 Lowers blood pressure

 Acts as immune system booster

 Regulates digestion
 5

 Prevents cancer

 Mascular degeneration

 Improves eyesight

 Helps maintain oral health

 Reduces the risk of stroke

 Is good for blood sugar regulation especially for diabetic people

Chinese parsley

 Reduces cancer risk

 Reduces pain as well inflammation related to arthritis

 Improves immune function

 Helps cleanse bloodstream

 Strong antioxidant activity

 Promotes a healthy heart

 Improves eye sight

 Fights free radicals

 Diabetic control

 Lowers blood pressure

Egg
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 Contains Vitamin A, which is good for the immune system and

help maintain a healthy vision.

 Is rich in Protein which is needed for building and maintaining

muscle, organs, skin, tissue, and producing antibodies, enzymes

and hormones.

 Contains Vitamin B2 or Riboflavin, and B12 which aids energy

metabolism, red blood cells, vision and the nervous system

 Has Vitamin B5 which aids energy metabolism and mental

functioning

 Contains Vitamin D and Phosphorous which keeps the bone

healthy and helps in the absorption of calcium

 Vitamin E which keeps the reproductive system, nervous

system and muscles healthy

 Has Biotin which also helps in energy metabolism, maintains

hair and immune system, and Choline which aids fat

metabolism, liver function, and breaks down amino acid which

is associated with the development of heart disease

 Contains Iron which assists red blood production and

transportation of Oxygen throughout the body and Selenium

 7

which protects cells from damage, maintains the immune

system and aids thyroid gland function

Ground Black Pepper

 Promotes proper digestion

 Provides respiratory relief from sinusitis and nasal congestion

 Helps to cure Vitiligo, skin disease that causes some areas of

the skin to lose its normal pigmentation and turn white

Garlic

 Improve iron metabolism

 Prevent oxidative stress and unwanted inflammation.

 Can combat sickness including common cold

 Reduce blood pressure

 Lower risk of heart disease

 May help prevent alzheimers disease and dementia

 Improve athletic performance

 Improve bone health

 Detoxify body

Onion

 Reduces inflammation and heals infection

 8

 Reduces the risk of heart attack and stroke

 Reduces risk of developing gastric ulcers.

 Regulates blood sugar

 Improves bone density in women

 Reduces allergic reaction

 Prevents and treats type of diarrhea

B. Target Market

B.1 Consumer/Customer

The target customers of this product are all people belonging to the

working class up to the upper social class.

This product is very ideal for people whom are health conscious since

all the ingredients used are rich in vitamins and minerals.The exception may

only be those who are allergic to seafood and other similar food products.

B.2 Area Coverage

The target area coverage for this business plan is Dasmariñas City,

Cavite. The city of Dasmariñas is one of the fastest growing cities in the
 9

entire province of Cavite. It has a land area of about 9,013 hectares covering

three (3) industrial estates, and 240 other factories/businesses scattered in its

75 barangays. More importantly, Dasmariñas City is chosen as the location

because among the places in Cavite province, Dasmariñas City has the

largest population of about 900,000 (www.Dasmariñas.gov.ph) which can be

potential customers of the product.Moreover, the edible snails used as main

component of Goraballs are widely available in the markets of Dasmariñas

and the researchers thought of introducing and promoting Goraballs in the

place where the feasibility study was conducted. The place of production

and sale will be situated in the city public market along Central Market

Avenue, Brgy. Zone 4, Dasmariñas City for easy access to customers. The

store and factory of the Goraballs will be situated in one rental space of 50

square meters.

C. Demand and Supply Analysis

Computation : Projected Demand/Linear Regression Method

Table 1
Projected Demand Equation

Year A + b(X) Projected Demand

2017 497,027.8 38,414.3 (4) 640,685

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+
2018 497,027.8 + 38,414.3 (5) 679,100
2019 497,027.8 + 38,414.3 (6) 717,514
2020 497,027.8 + 38,414.3 (7) 755,928
2021 497,027.8 + 38,414.3 (8) 794,343

C.2 Projected Supply Equation

The data presented in Table 2 shows the projected supply for the year

2017-2021, computed through linear regression method.

Table 2
Projected Supply

Year A + b(X) Projected Supply

2017 36,201 + 5,350.3 (4) 57,602

2018 36,201 + 5,350.3 (5) 62,953
2019 36,201 + 5,350.3 (6) 68,303
2020 36,201 + 5,350.3 (7) 73,653
2021 36,201 + 5,350.3 (8) 79,004
Based on the interview conducted with the owner of JM Meatshop situated
in the area.

C.3 Market Share (MS) based on Demand and Supply Gap

The data presented in the table shows the market share quantity based

on the supply and demand graph from year 2017-2021 with an increasing

market share percentage of 2% per year. The projected supply is subtracted

 11

to the projected demand to get the gap. Then, the gap is multiplied to the

market share percentage to derived the market share quantity

Table 3.
Demand and Supply Gap from 2017-2021
Projected Projected MS
Year - = Gap X = XY
Demand Supply %

= 583,08 X .02 =
2017 640, 685 - 57,602 11,662
3
= 616,14 X .04 =
2018 679,100 - 62,953 24,646
7
= 649,21 X .06 =
2019 717, 514 - 68,303 38,953
1
= 682,27 X .08 =
2020 755,928 - 73,653 54,582
5
= 715,33 X .10 =
2021 794,343 - 79,004 71,534
9

D. Projected Sales

Table 4
Projected Sale Based on Computed Demand and Supply Gap
 12

Year Price Per Package X MS (Qty) = Projected Sales

2017 Php 143.00 x 11,662 = Php 1,667,666
2018 Php 157.30 x 24,646 = Php 3,876,815.80
2019 Php 173.03 x 38,953 = Php 6,740,037.59
2020 Php190.33 x 54,582 = Php 10,388,592.10
2021 Php209.36 x 71,534 = Php 14,976,358.20

The data below shows the projected sales, computed by multiplying

the price per package to the market share quantity.

Table 5
Monthly Projected Sales In Volume and in Pesos
Year Price Per Pack In Volume In Pesos
2017 Php 143 972 Php 138,996
2018 Php157 2053 Php 322,321
2019 Php 173 3246 Php 561,558
2020 Php191 4549 Php 868,859
2021 Php209 5961 Php 1,245,849

Computed at 10% increase in price yearly.

E. Marketing Program/Strategies

E. 1 Practices of Competitors
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The identified competitor of Goraballs is JM’S Meatshoppe located at

the Central Market Avenue as well as San Miguel PureFoods Company,

Inc., and CDO Foodsphere Inc. JM’s Meatshoppe sells frozen goods

including meatballs to its customers which include walk-ins and wholesale

buyers. The secondary competitors of Goraballs, on the other hand, would

be the various sellers of other frozen foods aside from meatballs.

Some of the marketing programs prevalent in the industry of frozen

goods manufacturing and which are specifically used by the previously

identified competitors are the use of posters, TV and radio commercials,

social media and free tasting. These kinds of marketing programs are

effective in such a way that the companies employing these programs are

able to reach different customers from different areas even at their homes.

E. 2 Own Marketing Strategies

For the initial product tasting, 30 respondents were asked to taste

Goraballs and rate the different criteria indicated in the questionnaire. The

criteria included in the survey were the taste, appearance, texture, color,

health benefits, acceptability, price, size per serving, use of indigenous

 14

ingredients, and availability of ingredients. The researchers used random

sampling to identify the respondents.

Table 7
Marketing Survey

Criteria 5 % 4 % 3 % 2 % 1 % Total
Taste 20 66.67 10 33.33 0 0 0 0 0 0 30
Appearance 10 33.33 19 63.33 0 0 0 0 1 3.33 30
Texture 21 70 9 30 0 0 0 0 0 0 30
Color 13 43.33 17 56.67 0 0 0 0 0 0 30
Health Benefits 22 73.33 8 26.67 0 0 0 0 0 0 30
Acceptability 20 66.67 10 33.33 0 0 0 0 0 0 30
Price 19 63.33 11 36.67 0 0 0 0 0 0 30
Size per serving 15 50 14 46.67 1 3.33 0 0 0 0 30
Use of 26 86.67 4 13.33 0 0 0 0 0 0 30
ingredients
Availability of 29 96.67 1 3.33 0 0 0 0 0 0 30
ingredients

As part of our marketing strategy, customers or retailers who will buy

in bulk will be given trade discounts.

The business will use social media such as Facebook pages, Twitter

and Instagram Accounts to promote our products for free, including the use

of poster and tarpaulin, sampling and free taste for product awareness.

F. Marketing/Selling Expenses
 15

In determining the amount of Goraballs to sell, the monthly total raw

materials cost, direct labor cost, and manufacturing overhead were totaled

and divided by the total monthly production of 972 packs (38packs/day for

26 operating days). The total production cost per pack is Php 71.54 plus a

100% mark-up resulting to a selling price of Php 143.00 per pack. Each pack

contains 10 pieces of Goraballs where one piece is equivalent to Php 14.30.

The table below shows the monthly marketing costs of the business.

Table 8
Marketing Cost Table

Poster/Tarpaulin Php 2,000.00

Internet 599.00
Free Taste 6,750.00
Business Cards 1,000.00
Total Marketing Cost Php 10,349.00
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Chapter 3

PRODUCTION PLAN

A. Technical Production Description

Goraballs are meatballs made from snail meat and other natural and

local ingredients such as carrots, potato, Chinese parsley (kinchay), onion,

garlic and egg. The snails used in this product are the freshwater snails

popularly known as “Susongkulot” or “Tabagwang” in Bicol region. All of the

ingredients are highly available, cheap, and possess healthy components such

as Vitamins A, E, K, B6, B12, Choline, Potassium, and Phosphorous, among

others. The packaging of the product is in the form of vacuum sealed plastic

containers containing 10 pieces of Goraballs and takoyaki sauce in a plastic

sachet.
 17

The researchers chose to make a product that will fit the Filipinos’ love

for food by offering them something which is easy to cook but is still

nutritious. Moreover, the Goraballs can be used to complement common dishes

such as spaghetti, soup or simply as viand.

Calories and Proteins

A 100-gram serving of snails -- about 3.5 ounces -- provides 90 calories.

Most of the calories in a dish of snails come from protein. A serving of snails

packs a protein punch, that, while not quite equal to beef or chicken, compares

favorably with seafood. A 100-gram serving adds 16.5 grams of protein to your

diet, compared to 30 grams in a serving of white-meat chicken and 25 grams in

a serving of dark-meat chicken. A 100-gram serving of catfish provides 19

grams of protein. A Nigerian study published in the 2009 "International Journal

of Food Safety, Nutrition and Public Health" found that snails provided an

excellent and inexpensive source of protein and iron for children and young

mothers.

Vitamins and Minerals

A 100-gram serving supplies 3.5 milligrams of iron; that's more iron than

beef, which contains around 4 milligrams of iron in a 6-ounce serving. This

equals nearly half of your daily 8 milligram iron requirement if you're male or a

postmenopausal woman and about 20 percent of the 18 milligrams you need if

 18

you're a woman of childbearing age. A serving of snails contains about the

same amount of potassium as beef, 382 milligrams, as well as 250 milligrams of

magnesium, far more than beef, chicken, pork or fish, which provide about 30

milligrams of magnesium.

B. Production Process

This section shows the step-by-step procedure in making Goraballs and

Takoyaki Sauce. In a day, a total of 380 pieces or 38 packs of Goraballs and

Takoyaki Sauce can be made.

There will be 26 production days in a month which will yield 972 packs

of Goraballs.

Figure 1
Step-by-Step Procedure (Goraballs)
 19

● Washing

The first step in the production process is washing the ingredients. The

snails, still in their shells, are washed in running water to remove dirt and let

the snails excrete their salty substance. Other ingredients such as the carrots,

potatoes and Chinese parsley are washed as well.

● Steaming/Peeling

After washing, the snails are steamed with ginger for a couple of

minutes for them to further excrete remaining dirt, remove the stench so that

deshelling will be easier. Potatoes are also steamed to be peeled and mashed

easily. While the snails and potatoes are being steamed, the carrots, onions

and garlic are peeled.

● Sautéing

After steaming , the snails are sautéed with small amount of oil, ginger,

onion and garlic to further remove the stench and add some flavor to the snail

meat.

● Deshelling

The snails are separated from the shells through the use of a suction

machine. Since the snails were previously steamed, it will be easy to remove

the meat from the shells. The snail meat is placed on a tray at the end of the

machine.
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● Grinding

After deshelling, the snails and vegetables are ready for grinding.

● Mixing

Using the large mixing bowl, the grounded snail meat, and other

ingredients are mixed together with the eggs and ground pepper. All

should be mixed well together for a balanced distribution of the

ingredients.

● Molding

Using the scooper, mold the mixture into small balls of equal sizes.

● Packaging

Packing the meatballs using the vacuum sealer by 10 pieces each pack

with a takoyaki sauce in a sachet. Each pack sealed is placed on a stainless

rack.

● Refrigerating

The finished products are then transferred to the refrigerator and are

made available for sale.

Figure 2
Step-by-Step Procedure (Takoyaki Sauce)

● Preparation of ingredients
 21

All liquid ingredients including brown sugar are being measured

according to their respective measurements. Other ingredients such as the

ginger, carrot and spring onions are washed and chopped.

● Mixing of ingredients

Ingredients are poured gradually to a big frying pan, mixed and wait

until the mixture thickens.

● Packaging

Packing the sauce using the sachet sealer and placed together with the 10

pieces Goraballs before sealing it with the vacuum sealer.

The table below shows the quantity of raw materials and duration of

each step required per batch. Most of the ingredients are expressed in

kilograms except small scale measurements like salt and pepper.

Table 9
Duration per Step (Goraballs)

Steps Quantity Duration

1. Wash the snails with running water. 21 kgs 5 mins
2. Steam the snail with shells and
21 kgs 30 mins
potatoes.
 22

3. Grate the carrots, chop the Chinese Carrots - 420 g

Parsley, garlic, onion, and ginger. Potato – 280 g
Lastly, mash the steamed potato. Onion – 840 g
45 mins
Garlic – 420 g
Ginger – 42 pcs.
Chinese parsley-105 mg
4. Sautee the snail in oil with ginger,
21 kgs 10 mins.
garlic and onion.
5. Separate the snail from its shell
3 hrs.&
through the use of the suction 21 kgs
30 mins
machine.
6. Chop the hard part (head) of the
2,100 g 45 mins.
snail.
7. Chop manually the snail meat for a
2.3 kg 10 mins
fine texture.
8. In a large mixing bowl, combine
the ingredients with 21 medium- Eggs - 21 medium-sized
10 mins
sized eggs, flour and pepper. Mix Pepper - 21 teaspoons
thoroughly.
9. Mold the mixtures into small balls
100 pieces per tray;
using a scooper, and place them 30 mins
380 pcs needed/day
on the aluminum tray.
10. Pack the meatballs. Pile-up the
packed meatballs to a stainless 10 pieces per pack 15 mins.
rack.
11. Put all the packed meatballs into
38 packs 10 mins
the freezer.
Table 10
Duration per Step (Takoyaki Sauce)
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Steps Quantity Duration

1. Preparation of Ingredients. Ginger – 100 g
Garlic – 250 g
Spring Onions – 100 g
Chinese Cooking Wine
– 65 ml
Water – 520 ml
Chili Garlic Sauce -6.5 30 mins
tbsp
Oyster Sauce – 39 tbsp
Chicken cube – 75 g
Brown Sugar – 19.5
tbsp
Flour – 39 tbsp
2. Heating of oil 130 ml 10 mins
3. Mixing of ingredients on heat Ginger – 100 g
Garlic – 250 g
Spring Onions – 100 g
Chinese Cooking Wine
– 65 ml
Water – 1.5 L
Chili Garlic Sauce -6.5 20 mins
tbsp
Oyster Sauce – 39 tbsp
Chicken cube – 75 g
Brown Sugar – 19.5
tbsp
Flour – 39 tbsp
4. Packaging - 2-3 hrs.
The table below shows the labor and machine requirement necessary in

every step. Two (2) workers are responsible in the production process.
 24

Table 11
Labor and Machine Requirement (Goraballs)

Steps Labor Required

Requirement Equipment/Kitchen
Utensils
1. Washing the snails with Production Basin
running water. worker 1
2. Steam the snail and potatoes in Production Cauldron
separate cauldron. worker 1
.3. Grate the carrots, chop the Production Chopping board, knife &
Chinese Parsley, garlic, onion, worker 1&2 grater.
and ginger. Lastly, mash the
steamed potato
4. Sautee the snail in oil with Production Cauldron & Frying spatula
ginger, garlic and onion. worker 2

5. Separate the snail from its shell Production Suction Machine

through the use of the suction worker 1&2
machine.
6. Chop the hard part (head) of Production Chopping board & knife
the snail. worker 2
7. Chop manually the snail meat Production Chopping board & knife
for a fine texture. worker 1
8. In a large mixing bowl, Production Large mixing bowl
combine the ingredients with workers 1
21 medium-sized eggs, flour
and pepper. Mix thoroughly.
9. Mold the mixtures into small Production Scooper & Aluminum Tray
balls using a scooper, and workers 1&2
 25

place them on the

aluminum tray.
10. Pack the meatballs. Pile-up Production Vacuum sealer machine
the packed meatballs to a worker 1&2
stainless rack.
11. Put all the packed meatballs Production Aluminum Tray & Chiller
into the freezer. worker 1

Table 12
Labor and Machine Requirement (Takoyaki Sauce)

Equipment/Kitchen
Labor
Steps Utensils
Requirement
Requirement
Weighing
1. Preparation of Production worker scale/measurement
ingredients. 1&2 apparatus, chopping
board & knife
2. Heating of oil Production worker 2 Big Frying Pan
3. Mixing of ingredients Big frying pan &
Production worker 1
on heat Frying Spatula
4. Packaging Production worker 1 &2 Sealer
C. Production Schedule

The operation hours will be 8 hours, from 8am to 5pm. The availability

of raw materials is very stable because all are produced locally and are readily
 26

available in any market especially near the store since it is situated in the

public market.

Table 11
Shelf Life of Goraballs

Unopened/ Uncooked Chilled Not Chilled

Fresh Goraballs 1 month 1 day
Opened/ Cooked
Goraballs lasts for 2-3 days 1 day

D. Labor Requirement

The table below shows direct labor requirements. The company will be

needing two (2) production workers

Table 13
Direct Labor Requirement

No. of
Position Job Description
Worker
 27

 Able to operate suction machine, food

processor and mixer;
 Packing goods ready for delivery in
Container;
Production  Notify the Store Manager of any
2
Worker mechanical or material issues;
 Maintain aclean work areas and
machinery;
 Meet target production and quality
 Able to work 40 hours per week.

E. Machinery/Equipment Requirement

Table 14
Machinery/Equipment Requirement

Machine &
Picture Function CP Cost Source
Equipment
Used to Custom
Suction remove the 1 Php Build
Machine snail meat from cm 10, 000.00 Machine
the shell shop

Vacuum Used to seal 344 Php Appliance

Sealer the meatballs mm 3, 500.00 shop
 28

Used to store
4
the end- Php Appliance
Chiller cu.
product 10, 895.00 Shop
ft
(meatballs).

Weighing 5 Php Appliance

Used to weigh
Scale kg 560.00 Shop
Used for
Single steaming and 2 Php Appliance
burner stove sautéing the pcs. 800.00 Shop
snail.

F. Furniture and Fixtures

Table 15
Furniture and Fixture

Furniture
Picture Unit Purpose Cost Source
& Fixture

Used by the
Long production
Php Kitchenware
stainless 2 worker as a
6,000 shop
steel table working
station

Stainless 1 Used for Php Kitchenware

Rack piling up all 1,794 shop
the packed
meatballs
before putting
it into the
 29

freezer.

Used to
accommodate Php Local
Monoblock 2
one sitting 750 Market
Worker

Used by the
General
Manager as a
working
Office table Php Furniture
1 station to
& chair 1,500 shop
process
management
or business
Record
Used by
production
worker to
Filing safe
Php Office
Cabinet/Bag 1 keepuniform
3,000 Supply shop
deposit for sanitation
and workers
personal
belongings

G. Raw Materials Requirement

The total cost of raw materials that will be used in 37 packs of Goraballs

with Takoyaki Sauce is Php 1, 359.33 per production day or Php 36.74/pack.

Table 16
Raw Materials and Supplies Requirement
 30

Raw
Picture Sources Volume Cost
Materials
GORABALLS

21 medium-
Egg Local Supplier Php 77.00
sized

Ground
21
Black Local Supplier Php 10.50
teaspoons
Pepper

Minced
Chinese Public Market 105 mg Php 42.00
Parsley

Carrots Public Market 420 g Php 22.50

Potato Public Market 525 g Php 30.00

Ground
Snail Local Supplier 2.1 kg Php 1,050.00
Meat

Chopped
Local Supplier 840 mg Php 20.00
Onion
 31

Minced
Local Supplier 420 mg Php 20.00
Garlic

Flour Local Supplier 1 kg Php 70.00

TAKOYAKI SAUCE

Minced
Local Supplier Php 10.00
Ginger

Minced
Local Supplier Php 24.00
Garlic

Sprig onion Local Supplier Php 10.00

Chinese
Cooking Local Supplier Php 200.00
wine
 32

Oyster
Local Supplier Php 57.00
Sauce

Chili garlic
Local Supplier Php 67.50
sauce

Chicken
Local Supplier Php 48.00
cubes

Brown
Local Supplier Php 14.00
Sugar

Flour Local Supplier Php 20.00

H. Plant/Factory Location

The site is the City Public Market along Central Market Ave. in Zone 4,

Dasmarinas City, Cavite. Since the plant location is within the public market
 33

area, procurement of raw materials and supplies will be easier and at lesser

cost.

I. Plant Layout

The store will be divided into two sections: the production area located

at the back of the plant consisting of a well-ventilated storage room, washing

area for the utensils and ingredients, and equipment. In the production site is

also where the administrative office of the store manager is located and can be

used in storing important documents of the company, the employees’ locker,

and a comfort room.

The production area is designed in such a way that the different stations

are arranged according to the steps of production.

 34

J. Waste Disposal System

 35

Since this is a food company, the wastes generated are mainly

biodegradable and recyclable. Wastes include vegetable peelings, and shells

coming from the snails used.

Throughout the operations, vegetable peelings are directly disposed

through local domestic waste hauler and the payment for collection of waste

costs Php 150.00. Shells can be sold to craftsmen and used as their primary

raw material in making their products such as home decorations, key chains

and other crafts. Through this, the business can have a secondary source of

income.

The waste water from washing can be directly discharged to domestic

waste water receiver.

K. Quality Control System

The ingredients used in the making of Goraballs are ordered from trusted

suppliers. The main ingredient which is the snail is bought everyday in the

central market to ensure that the snails used in every production are fresh.

Moreover, upon receiving the raw materials, quality inspection is done and are

stored in their specific racks in a well-ventilated storage room. The raw

materials are cleaned before they are processed.

 36

To ensure the cleanliness of the employees in the production area, they

are required to wear hairnets, gloves, aprons and rubber shoes inside the

facility before making the meatballs. Situated near the employee entrance are

the employees’ lockers and comfort room where they can immediately wear

their prescribed attire and wash hands before proceeding to the actual

production area.

Apron Hairnet Plastic gloves

At the last step of production, vacuum sealers are used to seal the packs

to ensure quality of meatballs. According to the European Food Information

Council, using vacuum seals help food stay fresh and safe. Its aim is to reduce

or remove the oxygen levels to retain the moisture content of the food.

Goraballs are stored in the store’s freezer to avoid spoilage and seal freshness.

L. Production Cost
 37

The table below shows the production costs calculated on a monthly

basis. The cost includes raw materials, direct labor cost, and overhead costs

which include utilities cost (store rental, electricity, and water). The total cost

will be divided by the production volume to get the cost per pack. The markup

set by the team is 100%.

Table 16
Production Cost

Costs: Raw Materials Php 46, 605

Labor Cost
Wage – Php 8, 099 Php 9, 969
Benefits – Php 1. 870
Overhead Cost
Store Rental – Php 4,000
Electricity – Php 1,000
Water – Php 400
Php 13, 183.92
Indirect Materials – Php 3, 226
Factory Supplies – Php 70.92
Packaging – Php 3, 888
Marketing expense – Php 599
Total Cost per Month Php 69, 757.92
Production Volume per Month 972 packs
Cost per Pack (10 pcs/pack) Php 71.77
Markup rate 100%
Price per pack Php 143.53 ≈ Php 143
Chapter 4
 38

ORGANIZATIONAL PLAN

A. Legal Form of Business

The innovators plan to use sole proprietorship as their legal form of

business since the proposed business is not yet intricate. According to

entrepreneur.com, sole proprietorship is the simplest business form under

which one can operate a business. It is a popular business form due to its

simplicity, ease of setup, and nominal cost. In this legal form of business, the

owner receives all profits (subject to taxation specific to the business) and has

all the responsibility for all losses and debts.

B. Organizational Structure

Owner/Store Manager

Production Production
Worker Worker

The figure above shows the proposed organizational structure of the

business. This organizational structure is suited in a sole proprietorship form of

business since there is only one individual who owns and runs the business.

The positions depend on the complexity of the business. Therefore, in this

 39

organizational structure, there are no formal departments and several layers of

management yet, and orders come directly from the top instead of department

heads or mid-level managers.

C. Qualifications

Position No. of Job Description Qualifications

Worker
General/ 1
Store  Control day to day
Manager, operations within the
Cashier policies and guidelines of
the business to ensure
customer satisfaction and
profit maximization;
 Direct and supervise the 2
Production worker
 Prepare, analyze and keep
business documents;
 Plan and coordinate
advertising campaigns
and sales promotions and
prepare merchandize
display
 Ensure safe, secure, and
healthy facility
environment by
establishing, following,
and enforcing sanitation
standards and procedures;
 Ensure food quality and
100% customer
satisfaction;
 Able to work 48 hours per
week.
 Assures the completion
 40

proper control of all cash

at the POS registers
 Oversee and authorize
returns, exchanges,
merchandise credits,
check authorization,
charge sends, and
discretion discounts;

Production 2
Worker  Able to operate suction  practical
machine, food processor skills
and mixer.  Ability to
 Packing goods ready for
work quickly
delivery in container.
 Notify the General  Ability to
Manager of any concentrate
mechanical or material while doing
issues repetitive
 Maintain a clean work tasks
areas and machinery  Ability to
 Meet target production
follow
and quality
 Able to work 40 hours per instructions
week.  Awareness of
health and
safety

Office Supplies and Equipment

The following are the office equipment and supplies to be used in the

business:

1. Planners

2. Computer Supplies
 41

 Laptop

3. Files and Filing Supplies

 File Cabinets

 File Folders

4. Forms, Record Keeping and Reference

 Books

 Business Forms

 Ledgers

5. Office Maintenance and Janitorial Supplies

6. Desk Supplies

7. Office Equipment and Equipment Supplies

 Telephone

E. Gantt Chart of Activities

Duration
Task
Task Name Frequency per
#
month
1 Strategic Plan A 1
Defining Opportunity
2
and Threats A 1
Evaluate Business
3
Approach A 3 Legends:
4 Ordering of Equipment A 1 D - Daily
Installation of materials
5
& equipments A 1 W - Weekly

M - Monthly

Q - Quarterly
 42

6 Order of supplies M 2
7 Production of Products D 26
8 Cleaning D 26
9 Monitoring D 26
Repair and Restoring of
10
Equipments M 1
Physical Inventory
11
Count M 2
12 General Meeting M 1

Of Days
Task #

Month
10
11
12
13
14
15
16
17
18
19
20
21
22
23

24
25
26
27
28
29
30
1
2
3
4
5
6
7
8
9
5 4 32 1
8 7 6
9
10
11
12

F. Administrative Expenses

The following are the projected monthly administrative expenses of the

business:

1. Rent
 43

 Factory/ office space Php 4,000

2. Utilities

 Electricity 1,000

 Water 400

3. Salaries

 Salary of General Manager 9,000

 Benefits of General Manager 885.50

4. Office Supplies 458.33

 44

Chapter 5

FINANCIAL PLAN

This part of the study covers the financial aspects of the business plan

including its total project cost and forecast computed on a yearly basis.

A. Total Project Cost

A.1. Fixed Capital

Machines and Equipment 33,545.00
Furniture and Fixtures 10,634.00
Total Fixed Capital 44,179.00

A.2. Working Capital

Raw Materials
Meatballs 418,704.00
Sauce 5,335.00 424,039.00
Factory Supplies (Gloves) 851.00
Indirect Materials 38,712.00
Packaging 17,784.00
Utilities
Electricity 12,000.00
Water 4,800.00 16,800.00
Rental 48,000.00
Salaries and Wages
Office employee's salary 108,000.00
Office employee's benefits 10,626.00
Production workers' wages 97,188.00
Production workers'
benefits 22,440.00 238,254.00
Marketing Cost
 45

Internet fee 7,188.00

Total Working Capital 791,628.00

A.3. Pre-Operating Expenses  

Licenses 2,000.00
Business Registration 5,000.00
Marketing Costs
Tarpaulins and Posters 2,000.00
Business Cards 1,000.00
Free taste 6,750.00 9,750.00
Total Pre-Operating Expenses 16,750.00

Total Project Cost: Php 852,557.00

B. Budget

B.1. Marketing Budget

Tarpaulins and Posters 2,000.00

Business Cards 1,000.00

Free taste 6,750.00

Internet 7,188.00

Total Marketing Budget 16,938.00

B.2. Production Budget

Raw Materials 424,039.00

Production workers' wages 97,188.00

Production workers' benefits

HDMF 2,400.00

SSS 16,152.00
 46

PhilHealth 3,888.00 22,440.00

Manufacturing Overhead

Utilities 16,800.00

Internet 7,188.00

Indirect Materials 38,712.00

Factoy Supplies 720.00

Packaging 17,784.00

Rent 48,000.00 129,204.00

Total Production Budget 672,871.00

B.3. General and Administrative

Budget

Office employee's salaries 108,000.00

Office employee's benefits

HDMF 1,200.00

SSS 8,076.00

PhilHealth 1,350.00 10,626.00

Taxes and Licenses 7,000.00

Office Supplies 5,500.00

Total General and Administrative Budget 131,126.00

C. Cash Flow Statement

Projected Cash Flow Statement

For the period ending December 31, 2017
Pre-
2017
operating
 47

Cash Balance,
Beginning - 791,628.00

Add: Equity/Funds 852,557.00 -

Sales - 1,667,666.00

Cash available for use 852,557.00 2,459,294.00

Less: Fixed Assets 44,179.00 -
Pre-operating expenses 16,750.00 -
Administrative expenses - 131,126.00
Manufacturing expense - 672,871.00

Cash Balance, Ending 791,628.00 1,655,297.00

D. Profit and Loss Forecast

2017 2018 2019

Sales 1,667,666.00 3,876,815.80 6,740,037.59

Less: Sales Discount 2,860.00 3,146.00 3,460.60

Net Sales 1,664,806.00 3,873,669.80 6,736,576.99

Less: Cost of Goods Sold 672,871.00 740,158.10 814,174.00

Gross Profit 991,935.00 3,133,511.70 5,922,402.99

Less: Operating Expenses 131,126.00 131,126.00 131,126.00

Income from Operations 860,809.00 3,002,385.70 5,791,276.99

Add: Other Income (Sale of
shells) 163,800.00 163,800.00 163,800.00

Net Income 1,024,609.00 3,166,185.70 5,955,076.99

E. Sales Forecast
 48

2017 2018 2019

11,662.0 24,646.0 38,953.
Projected unit sales (packs) 0 0 00
Price per pack (10pcs per 173.
pack) 143.00 157.30 03

₱ ₱3,876,815.8 ₱6,740,037.5
Projected Sales 1,667,666.00 0 9
 49

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