CHAPTER 1

Introduction

Bagoong Alamang is one of the traditional Filipino condiments

that is usually made of fermented shrimp. Home-made bagoong alamang is

commonly eaten with unripe mangoes or use as a flavoring for various

dishes. Foreign people consider our Bagoong Alamang as an “exotic

food”. The product name comes from the Spanish word "Mi Amigo" which

literally means " my friend". We chose this name because it symbolizes

the exceptional relationship that exists between our customers, both

in terms of friendship and partnership.

The product has a strong and food smell making it for others a

hesitant to eat that is why we use sardines as one of the main

ingredients to add more likable flavor, more attractive and

presentable color. Despite the smell and look of this condiment,

Bagoong Alamang has a significant health benefit that has a high level

of essential fatty acid like D.H.A and polyunsaturated fatty acid, and

these acids have a beneficial effect on human health.

Our quality product will serve as an attribute to society. The

ingredients will be easily found in the marketplace. The product will

be remarkable to the consumers as it will introduce to them the newest

flavor of Bagoong Alamang. In today's generation, people prefer to

choose a food product that meets their expectations without

considering the health benefits of their consumed foods. That is why

we wanted to offer a very suitable product which is good for their

1
everyday lifestyle and helps support their balanced diet with no

preservatives added.

The proposed product, Mi Amigo's Bagoong Alamang, which the local

ingredients are abundant with a reasonable price, will eventually help
our local fishermen who produce shrimp paste and would somehow improve
their economic situation.

Vision

Mi Amigo's Bagoong Alamang, guided by the Filipino culture

and traditions will promote a quality version of Bagoong Alamang.
Care, integrity, hard work, and innovation at all cost creates
success.

Mission

Our mission is to offer the best quality of Bagoong Alamang

and the best possible services to the food industry to become a
well-known product nationwide. We will continuously improve all
aspects of our business to sustain the long-term success of our
customers. We partner with our customers toward a beneficial
lifestyle and lead the food industry that also supports the
livelihood of our local fishers. Our Mi Amigo's Bagoong Alamang,
will give out special attention to your daily's health
satisfaction.

2
Background of the study

The purpose of the study is to serve our customers a good

healthy and satisfying product that will be remarkable to them.
The product will surely be enjoyable. The taste will be going to
satisfy their cravings since it is a perfect pair for rice,
unripe fruits, and other viands. Its ingredients are readily
available at the market anytime. The product is suitable for
people at the age of 5 years old and above. We would like to
introduce the savor of our innovative product. In today's
generation, people are more in favor of a product that last
longer and doesn't have any preservatives added. The ingredients
used for the product has contents that are suitable for
nutritional lifestyle. Promoting a healthy and convenient product
is a good reason to make a certain product. We are introducing
two varieties of our dish to the public consumers that improve
not only the consumer’s health but also their nutritional
content.

Conceptual Framework

Product description, product process, equipment and

materials, plant site, and plant layout are all included in the
project technical study. This section covers how the production
is made, what ingredients and equipment are required, and where
the researcher to establish the business and the layout.

The marketing research covers the following topics: general

company conditions, competitive condition, target market, demand,
supply, product, multi-prong strategy, promotion, and packaging.
This section discusses the structured questionnaire sent to
respondents, the results of which indicates demand and supply, as

3
well as whether the researcher’s product we enter the target
market.

Capitalization, sources of funds, total sales, total

expenses, income statement, return of investment, and ratio
analysis are all included in the financial analysis. This section
analyzes whether or not the business is lucrative. It also serves
as a reference to see if transactions are increasing over the
next five years.

The management study depicts the ownership structure,

business structure, job analysis, and company policies that the
researcher’s devices.

The socio economic study demonstrates the government's and

society's involvement in the study. This area signifies that the
business existed not only for profit, but also for the welfare of
the people's well-being.

The technical study of the project comprises product

description, product process, equipment and material, plant
location and plant layout. This section covers producing goods,
ingredients and the needs of equipment's are needed, and where
will the researchers going to put the said the business and its
layout.

Technical aspect determines the efficiency of proposal project by

examining the intended process materials and labor, logistics and
technology related to producing, delivering and trucking the
products or services you intend to help.

4
 Goals/Objectiveness

This study aims to satisfy our customers and to provide an

improve Bagoong Alamang; in addition, we wanted to establish a
strong relationship with our customers, who will be our
business’s most valuable asset. More than that, we want to be
well-known and expand our business by retailing, reselling,
franchising to other locations in order to increase revenues and
success. Nevertheless, our main goal is to provide a nice,
healthy, and enjoyable product to our customers that will
eventually stand out.

Scope and Limitations of the Study

This study of the Mi Amigos Bagoong business is located in

Kitcharao, and will be based on management, marketing, the
technical, socioeconomic, and financial aspect of business
Kitcharaonon will be covered as part of the respondents. Direct
selling, retailing, online selling, and ordering will all be used
to distribute the product.

The study examines the feasibility of the product Mi Amigos

Bagoong in Kitcharao and other neighboring municipalities. Demand
estimations done through Random Sampling and

5
Framework of the study

TECHNICAL MARKETING FINANCIAL MANAGEMENT SOCIO-ECONOMIC

PRODUCT GENERAL FORM OF CONTRIBUTION OF THE

CAPITALIZATION
DESCRIPTION BUSINESS OWNERSHIP GOVERNMENT

PRODUCT SOURCES OF CONTRIBUTION TO THE

CONDITIONS STRUCTURE
PROCESS FUND SOCIETY

EQUIPMENT /
COMPETITIVE TOTAL SALES JOB ANALYSIS
MATERIALS

PLANT TOTAL COMPANY

DEMAND
LOCATION EXPENSES POLICIES

PLANT INCOME
PRODUCT
LAY-OUT STATEMENT

PRICING BALANCE
STRATEGY SHEET

CASH FLOW
PROMOTION
STATEMENT

RETURN ON
PACKAGING
INVESTMENT

RATIO
ANALYSIS

Figure 1.0

6
SIGNIFICANCE OF THE STUDY

This study about Mi Amigo’s Bagoong Alamang promotes

good market distribution and consumption. It is beneficial to the

student, the future researchers in strategic business management

and corporate strategies that shall be employed the market

settings. Moreover, this study would be essential in the society,

endeavor to promote human resources emanate from them such as

shrimps used in the fermentation. In addition, this research

study will be helpful in the retail industry and business

practitioners.

To the customers - the benefit of the customer is the

reason in helping the product to make profit. They play a vital

role in business to be known.

To the researchers - it can help the new researchers

and give knowledge to make it applicable to their study.

To the fishermen - this study will help them in their

livelihood as one of their means of living will serve as our

source of production.

The study gives the customers a product that is

affordable and has a health benefit. This will also give the

fishermen the opportunities to engage in

7
Statement of the Problem

The purpose of this entrepreneurship, serve a big role in the

product and gives economic growth to our industry.

Moreover, this feasibility study serves as guide to the future

researcher and helps the economic growth. The main ingredients

of the product were in their field and if ever they will be

going to put up their own business it become easy for them to

enter the business world.

feasibility study is to determine whether or not it is

feasible to produce and distribute new upgraded Bagoong Alamang

flavors.

Its goal is to assess and examine the following areas in

particular:

 The Technical aspect of the study

 Product Description

 Product Process

 Equipment/ Materials

 Plant Location

 Plant Lay out

8
 The Marketing aspect of the study

 General Business Condition

 Target Market

 Demand

 Product

 Pricing Strategy

 Promotion

 Packaging’s

 The Financial aspect of the study

 Capitalization

 Sources of Funds

 Total Sales

 Total Expenses

 Income Statement (5 years projected)

 Balance Sheet (5 years projected)

 Cash Flow Statement (5 years projected)

 Return on Investment

 Ratio Analysis

 The Management aspect of the study

9
  Legal Structure and Form of Ownership

 Structure

 Job Analysis

 Company Policies

 The Socio-economic aspect of the study

 Contribution to the government

 Contribution to the society

10
 CHAPTER 2

METHODOLOGY

This chapter describes and discusses how the researchers

will collect the data and information needed for the entire

study. It explains who will be the respondents and what the

research will be about. This also demonstrates the procedure for

data sources and data collection methods; these chapters also

discuss the type of research, research design, and the research

location where the study will be conducted, as well as a

description of our product and the outlook of the industry and

the size of the industry, target market, market segmentation and

presentation, marketing and sales activities, details of our

product and service descriptions that we will apply to our

business, and market competition.

RESEARCH DESIGN

The researchers used a descriptive design, survey

questionnaires, and key informant interviews. The survey was

carried out by distributing structured questionnaires to a number

of identified Kitcharao residents. Participants who were asked to

rate the two flavors during the survey were chosen at random from

a list of identified respondents. The survey was divided into

11
sections using interview guide questionnaires. Furthermore,

interviews were conducted with existing business operators who

also sell bagoong alamang, which will provide

analytical information on how we, the researchers, will improve

our product offerings to our target consumers.

RESEARCH LOCALE

The survey questionnaires were disseminated around

Kitcharao areas by the researchers; Poblacion, Mainit and
Jabonga.  The respondents chosen here come from a variety of
industries and have been briefed on the nature of the research
and product. Because we are still in the midst of pandemic, the
products were circulated by physical distribution with strict
adherence to protocol.

Figure 1.1

12
RESPONDENTS

Because of the large number of people who could be potential

customers, the researchers obtained at least 50 responses from
the identified locations. Respondents were identified as soon as
they expressed interest in purchasing Bagoong Alamang (Mi Amigo's
Bagoong Alamang).

KITCHARAO AREAS NO.OF RESPONDENTS

POBLACION 20

JABONGA 15

MAINIT 15

Table 1.0

SOURCES AND METHODS OF COLLECTING DATA

The researchers gathered information from primary sources.

The primary data were collected by distributing structured
questionnaires to random Kitcharao residents.

13
 Chapter III

`TECHNICAL STUDY

This research looks at the manufacturing process as well as the

business’s operations. It also specifies the equipment used in
the production as well as the other aspects of converting raw
materials into trade-ready products.

Plant lay-out, size and structures are all shown to help identify
the business operations. The flow chart is also used to specify
the product process. The list of equipment and tools, is being
enumerated, along with their associated. Costs, raw materials,
and other funding sources are also being specified.

14
 GENERAL BUSINESS CONDITION

All raw materials must be safe for human consumption and

free from spoilage and contamination. No ingredients, which have
indications of deterioration, decomposition or contamination to
an extent which renders them unfit for human consumption, shall
be used for manufacturing. Stored stocks of ingredients should be
used on a first in-first out (FIFO)basis.

Every utensils and other production-related equipment, as

well as the floors and surroundings. The areas must be drained,
lighted, ventilated and screened against flies and possible have
a drainage facility. The comfort room shall have no connection to
the stock room or kitchen, where ingredients are prepared,
packaging is completed, and products are manufactured and stored.

Uniforms, aprons, and hairnets had to be washed at home

every other day for sanitary reasons. Every employee must have at
least three uniforms provided by the company. Personal
accessories are not permitted on the premises, particularly
during production or manufacturing.

No one is permitted to sit or lie at any tables associated

with manufacturing. All equipment should be kept in their
designated areas and should not be brought outside. Before
packing the products, all bottles from the stock room must be
thoroughly washed and dried.

There are no pets or animals permitted inside the building.

Only authorized individuals are allowed to enter the restricted
area. No employee is entitled to allow any person infected with
any contagious disease that may risk customer’s public health,

15
and all employees are required to submit health examination.
Otherwise, he/she is not qualified to work therein.

Employees should be in good physical condition before

beginning their duties. They must wash their hands properly, and
smoking is strictly prohibited on the premises.

PRODUCTION PROCESS

Mi Amigo’s Bagoong Alamang

INGREDIENTS

2 kls. Shrimp paste

1kls. Pork belly

4 cans Sardines

1kl. Tomatoes

½ kl. Sugar

½ kl. Vegetable

3pcs. Garlic

¼ klChili (for sweet and spicy flavor only)

2tsp Vinegar

Pepper (optional)

16
 STEP BY STEP PROCEDURE

Prepare all the needed ingredients. Place the raw bagoong

alamang in a fine mesh sieve, quickly rinse it in running cold
water to remove excess salt. Drain and set aside. Chop the pork
belly into tiny size possible. Mince the garlic and slice the
tomatoes into cubes. In a medium heat, put a small amount of
vegetable oil and fry the chopped pork belly. When it turned
golden brown, add the minced garlic and the sliced tomatoes (add
chili for sweet and spicy flavor only). Add the shrimp paste or
the Bagoong Alamang and the sardines (any kinds of sardines will
do, use spicy sardines for sweet and spicy flavor). Allow for a
10-15mins resting period. Combine and balance the sugar and
vinegar for a preferred flavor taste. Pour in all of the
remaining oil for preservation. Give it 3mins more. For a more
flavorful finish, sprinkle it with pepper powder (optional). Set
aside the finished product. As the temperature cooled down, it is
ready for packing.

All of the bottles needed to be washed and drained properly.

Labels and sealing will follow, and you’ll be finished.

Makes: 24 bottles

17
 Table 1.5 Raw Materials

Quantity per production

Item Source Monthly Yearly Unit per Price Amount

Bagoong Surigao City 130 kls 1,560 180.00 280,800.00

Alamang

Pork Surigao City 70 kls 840 280.00 235,200.00

belly

Tomatoes Surigao City 70 kls 840 40.00 33,600.00

Sardines Surigao City 260 cans 3,120 10.00 59,280.00

Garlic Surigao City 6 kls 72 60.00 4,320.00

Vegetable Surigao City 60 kls 720 80.00 57,600.00

oil

Sugar Surigao City 60 720 48.00 34,560.00

Vinegar Surigao City 10 120 8.00 960.00

Chili Surigao City 5 60 40.00 2,400

TOTAL 756.00 708,720.00

Table 1.1

This table shows the listed raw materials to be used in producing

Mi Amigos Bagoong Alamang.

Table 1.6 Projected Cost of Raw Materials

Projected Cost of Raw Materials for the Year 2022-2026

2022 2023 2024 2025 2026

708,720.00 744,156.00 781,363.00 820,431.99 861,453.59

Table 1.2

18
The above table shows the projected costs of raw materials to be
used in producing Mi Amigos Bagoong Alamang. The Proponents
assumed that every year there will be an increase of Five percent
{5%} in the price of the raw materials.

WORKFLOW OF THE PROCESS

 Make a concept recipe for Bagoong Alamang

 Gather all of the necessary ingredients

 Combine all of the ingredients

 Without the use of any preservatives, balance the flavor

 Wait till its completed

 Set aside until temperature has cooled

 Prepare for bottle packing

 Prepare for orders, sales, and displays

PRODUCT DESCRIPTION

Mi Amigo’s Bagoong Alamang is a dish made with shrimp paste, pork

fat, sardines, tomatoes, and spices. Our bodies will benefit from
all of the ingredients used. Our product contains no
preservatives and is suitable for customer’s daily balanced diet.

We wanted to introduce two improve different flavors at a

reasonable price.

19
 Original Flavor(P110.00)

Original flavor has

It’s plain mouth-watering flavor

Figure 1.3

 Sweet and Spicy Flavor(P110.00)

Sweet and spicy flavor has its own

character perfect for cravings

Figure 1.4

PRODUCTION TOOLS

20
Wooden Ladle- Used for mixing all the ingredients

Spoon- an implement consisting of a small

bowl shaped receptacle supported by a
handle, used for eating, serving, and cooking
foods.

Knife- is used for cutting,

chopping, dicing, slicing,
mincing, peeling, separating
and other kitchen tasks where
the thin metal shaft of a
blade is of value for food
preparation.

Chopping board- Used for cutting, slicing,

mincing the food product.

Wok- feature flat bottoms, or round

bottoms for high heat concentration.

Strainer - A kitchen device that is most used

to strain liquids away from other ingredients
but also to occasionally sift fine
ingredients away from larger ingredients.

21
Heat gun – are commonly use to strip paint and weld or bend
plastics and softening glue and adhesive.

Refrigerator – the fundamental reason for

having a refrigerator is to keep food cold.
It helps to slow down the activity of
bacteria (which all food contains) so that
it takes longer for the bacteria to spoil
the food.

Gas stove – is a kitchen appliance

designed for the purpose of cooking food
heated by gas.

22
 Production Tools

Item QTY Unit price Amount Life Span Depreciation

Expense
Wooden Ladle 6 115.00 690.00 5 138.00

Spoon 12 10.00 120.00 5 24.00

Knife 6 75.00 450.00 5 90.00

Chopping board 5 120.00 600.00 5 120.00

Strainer 4 100.00 400.00 5 80.00

Wok 5 280.00 1,400.00 5 280.00

Mixing bowl 5 99.00 495.00 5 99.00

Heat gun 4 459.00 1,836.00 5 367.20

Gas stove 1 2,500.00 2,500.00 5 500.00

Refrigerator 1 11,999.00 11,999.00 10 1,199.90

TOTAL: 20,490.00 2,898.10

Table 1.3

shows the cost of plant furniture and fixture. All furniture

and fixture proposed to be buy in Surigao City.

PLANT LOCATION

Mi Amigo’s Bagoong Alamang will be located near Kitcharao

public market, in front of Panaderia Bakeshop, entrance hallway
of the market. We chose this location because it is easily
accessible and convenient particularly those people in the
market. The proposed business location is attached in the photo
below.

23
 Figure 1.5

PLANT LAYOUT

The plant layout has been strategically designed to aid

in the smooth operation of the proposed business. The display
area, also known as the cashier area, is where finished products
are placed and ready for sale. The business office area will
serve and cater to online transactions as well as general
business transactions. And the cooking area or kitchen is where
products are processed and manufactured.

24
 Schedule 2: Rent Expenses

Monthly Annual Cost

P 5,000.00 P 60,000.00

Table 1.4

Figure 1.6

Figure 1.7

25
PLANT LAYOUT

Cashier/display area

This is a hypothetical design of the Mi Amigo’s Bagoong

Alamang display area and cashier. It will be the location where
the finished products will be displayed and ready for sale as
well as the cashier to sit behind for the selling
transaction.

Office

This is a proposed design for the office of Mi Amigo’s

Bagoong Alamang. A location where the manager sits and manages
general business transactions.

26
 Office Supplies

Item Source Quality Price Annual

Cost

Record Book Surigao City 2 60.00 120.00

Office Receipt Surigao City 10 100.00 100.00

Ball pen Surigao City 2 65.00 130.00

Bond paper Surigao City 2 250.00 500.00

Stapler Surigao City 2 200.00 400.00

Fastener Surigao City 3 50.00 150.00

TOTAL: 1,400.00

Table 1.5

Table 1.8 shows the annual cost of office supplies.

Projected Cost of Office Supplies for the Year 2022-2026

2022 2023 2024 2025 2026

1,400.00 1,442.00 1,485.26 1,529.82 1,575.71

27
The above table shows the equipment to be used in operating the
proposed business with the corresponding unit cost.

Kitchen/cooking area

This is a perspective view of a kitchen or cooking area in which

the cook has processed and manufactured the product.

Figure 1.8

Plant Furniture & Fixture

Item Quantity Price AMOUNT Est.useful life Depreciation

expenses

Table 2 3,000.00 6,000.00 5 1,200.00

28
 Chair 5 1,500.00 7,500.00 5 1,500.00

Wooden

stock rack 2 3,000.00 6,000.00 5 1,200.00

Cabinet 1 1,000.00 1,000.00 5 200.00

TOTAL: 20,500.00 4,100.00

Table 1.6

shows the cost of plant furniture and fixture. All furniture and
fixture proposed to be buy in Surigao City

Plant Equipment

Item Quantity Price Amount Estimated Depreciation

Useful Life Expense

Computer 1 15,000.00 15,000.00 5 3,000.00

Cash Register
System 1 5,500.00 5,500.00 5 1,100.00

TOTAL: 20,500.00 4,100.00

Table 1.7

This table shows the cost of plant equipment of Mi Amigos Bagoong

Alamang. Plant equipment6bn proposed to be bought in Surigao
City.

Utilities Expense

Item Month Annual

Electric Bill 5,000.00 60,000.00

Water Bill 2000.00 24,000.00

29
LPG 1,000.00 12,000.00

TOTAL: 2,800.00 96,000.00

The table 1.8 above shows Table 1.8 the utilities expenses
of Mi Amigos Bagoong Alamang.

Year Total Cost

2022 96,000.00
2023 98,880.00
2024 101,846.40
2025 104,901.79
2026 108,048.85

Table 1.9

shows the projected utilities expense. The proponent assumed

that it will increase by Three percent {3%} annually.

Machineries and Equipment

Item Source Quantity Cost Life Span Depreciation

Expenses

Vehicle Surigao City 1 300,000.00 10 30,000.00

TOTAL: 300,000.00 30,000.00

Table 2.0
Table 2.5 Transportation Cost

Transportation Cost

Item Cost per Month Annual Cost

Purchase of Raw Materials 2,000.00 24,000.00

30
Delivery expenses 1,500.00 18,000.00

Fuel 600.00 7,200.00

Total: 4,100.00 49,200.00

Table 2.1

The table above shows the transportation cost of the business and
proposed to remain its cost for 5 years.

Cost Analysis of Mi Amigos Bagoong Alamang

Raw Materials Unit Price Total Cost

Direct Labor 234,000.00
Raw Materials 708,720.00
Rent Expense - Building 5,000/month 60,000.00
Total Operating Cost
1,002,720.00
Divide by No. of bottles in one year 18,720
Unit Price 53.56
Mark-up 56.44
Unit Selling Price 110.00

Table 2.2

Table 2.2 shows the total cost analysis of Mi Amigos Bagoong

Alamang. All raw materials, packaging, equipment, tools,
furniture and machineries is proposed to buy and purchase from
Surigao and Butuan City.

CHAPTER IV

Marketing Study

31
 This chapter will assist the researchers to understand the
business’s marketing aspect. The marketing aspects will cover the
following: General Business Condition, Tabulation of Results
Target Market, Product, Promotion, Marketing Strategy, Pricing
Strategy, Promotion and Packaging.

Time and effort should be invested in the business in order

for it to thrive. To be able to provide good service to each
customer, the proponent of this business must be creative. The
primary goal of the recommended business must meet the needs and
desires of its customers or target market.

The feasibility marketing aspect is the most important in

every project because it necessitates a thorough examination of
the company’s total demand and supply.

Description and Outlook of the Industry

Bagoong Alamang is made with krill or small shrimps. And

people make it through fermentation of fish or shrimp with salt
for at least a couple of weeks. This fermenting process can last
a few months, especially in enriching the flavor. And it is the
standard Filipino condiment that the country shows its love for
through the wide variety of mouthwatering, tasty dishes that
feature it. It is a requisite ingredient in many cuisine and
dishes.

Because of its popularity, there is a wide variety of

bagoong variations in the Philippines. Aside from being popular,
this product does not only made dishes mouthwatering, but it is
also a good source of nutrients such as protein, calcium, vitamin
and niacin.

32
 As experienced in the recent years, demand for bagoong
alamang industry has recently became one of the basic necessity
and growing demand in the market. We, the researchers wanted to
introduce the best quality of Bagoong Alamang and envision in
becoming one of the major distributors and producers all over the
country.

Size of the Industry

According to 2020 Census of Population in the Philippines,

the Kitcharao has an estimated population of 21,278 and entire
Caraga Region has an estimated population of 2,804,788. This was
based on the Census conducted last 2020. This data given us the
opportunity to have a look on how large is the population in a
scale of the target market. Kitcharao is the landlocked of
Municipality in the coastal province of Agusan del Norte.

Shrimp paste or bagoong alamang is a well-known condiment in

the Philippines which is part of the native dishes in the
country. This product opened to establishment of bagoong industry
in which make it a good export commodity. To be specific, bagoong
alamang making is a thriving industry in the Philippines. There
are 65 registered operators of bagoong plants with a combined
production of approximately 659 metric tons in the 1974. Up to
the present, the industry is experiencing an increase in
customer’s demand due to the Filipino’s desire to the special
taste of bagoong alamang.

TARGET MARKET

33
 Bagoong Alamang wanted to offer and influence most Filipinos
to support local products that are well-known in the Philippines
and are also reasonably priced. Our product’s target market is
people aged 5 and up started from Kitcharao area where we are
located, nearby municipalities, Agusan del Norte and proposed to
extend the identity of our quality product to entire Caraga
region because they are the first people of Mindanao who are
familiar with the product we are promoting and it will be easier
for us to promote our product in other areas. Our product has
health benefits that our customers require. Whatever your
profession, gender, walk of life, or social status is. Also, few
of our target consumers will be the parents who always prepares
food at home because they can persuade their children to consume
our product, restaurants and karenderyas who serves dishes
everyday and our product will serve as one of their necessary
ingredients, teenagers and girls who loves to eat mangoes, our
bagoong alamang will be a perfect pair which is ideal for
satisfying cravings while also providing health benefits.

MARKET SEGMENTATION

Bagoong Alamang considers all types of people of all ages

and origins, regardless of gender, status, or religion. Either
those with a high or low income can be our target market, and can
be our potential customers. We spend time and effort
differentiating and understanding their needs, wants, and
preferences in order to meet the satisfaction of our quality
product.

Demand Study

1. Do you have seafood allergy?

Yes
No 34
 Respondents Answer
Yes 4
No 46

The result show that 46 of the respondents said that they don’t
have seafood allergy while 4 of the respondents they have seafood
allergy. This means that is a good chance that our product will
be feasible for target consumers who have been waiting for it.

2. Are you a fan of bagoong Alamang?

Yes Respondents Answer

No Yes 39
No 11

The result show that 39 respondents said that they fan of Bagoong
Alamang and 11 respondents said they don’t fan of Bagoong
Alamang. The result appears that Bagoong Alamang has a good
potential of being marketables.

3. How do you find our Mi Amigos Bagoong Alamang with

Sardines?

Very Satisfy- Respondents Answer

ing 35 Very Satisfying 35
Satisfying Satisfying 13
Average Average 2
The results show that 35 respondents finds Mi Amigos Bagoong
Alamang as very satisfying and 13 said they are satisfying while
2 for average. Based on these finding we are optimistic that
consumers will like our product.

4. What is your price range for Mi Amigos Alamang

The 125-130
140-150
Respondents’ Answer
125-130 41
140–150 9

result show that 41 of the

respondents said that are willing to pay Php 125-130 while 9
respondents of the 140-150. These result provided us an indicate
of how much our Mi Amigos Bagoong Alamng product would cost.

5. Which flavor is best for you?

36
 Sweet and
spicy
Respondents’ Answer
Original
Sweet and Spicy 35

Original 15

The result shows that there are 35 respondents like the Sweet and
spicy and 15 liked the Original flavor. These results findings
provided us an indication of how much our Mi Amigos Bagoong Alamang
will be produced.

Rate the following Items:

Respondents’ Answer

Category Very Satisfying Satisfying Average

Taste 31 14 5

Packaging 42 5 3

Cleanliness 40 7 3

Price 41 8 1

The results showed us how we should handle the following issues

that will have an impact on the product’s, according to the
respondents.

Marketing and sales activities

37
 Bagoong Alamang has always been a side dish or dip flavored
condiments by most Pinoy. Delicious bagoong alamang who would
have through that we can have it in hand? Our bagoong is packaged
in a bottle. It's basic in term, but look at the taste and
nutrition it provides to the consumers.

1st Month-

 Distribution of flyers
 Promotion of the product of any social media
 Conduct free tasting of the product
 Giveaway of Promotional Gifts

5th Month

 Promote the product in nearby areas of Kitcharao,

Agusan del Norte
 Give promo and discount

7th Month

 Conduct survey about the customer’s feedback

 Expand the target market to nearby areas in Jabonga
Agusan del Norte

1st Year

 Give cash discount

 Buy 10 bottle a get 1 mini bottle for free

Schedule 7: Promotional Expenses

38
 Cost No of month Annual

Free Taste 380.00 Product Launching 380.00

Tarpaulin 300.00 2 months 600.00

Brand Promotional Gifts 900.00 First month 900.00

Flyers and leaflets 100.00 12 months 1,200.00

Radio 2,000.00 12 months 24,000.00

Total 27,080.00

Table 2.3

CHANNEL OF DISTRIBUTION

A distribution channel is a network of businesses or intermediaries that product or service

travels through before reaching the final consumer.

Mi Amigo’s Bagoong
Alamang

Retailer Consumer

Projected Demand and Sales for the year 2022-2026

39
 Demand (per bottle) 2022 2023 2024 2025 2026

Original Flavor 5,184 5,702 6,272 6,899 7,589

Sweet and Spicy 12,096 13,306 14,637 16,101 17,711

Table 2.5

shows the projected demand of Mi Amigos Bagong Alamang’s two

flavors for 5 years.

Sales (Php) 2022 2023 2024 2025 2026

Original 673,920.00 741,312.00 815,443.00 896,987.00 986,686.00

Sweet 1,572,480.00 1,729,728.00 1,902,701.00 2,092,971.00 2,302,268.00

and Spicy

Table 2.6

shows the projected sales of Mi Amigos Bagoong Alamang’s two

flavors for 5 years.

Year Total Demand Total Sales

2022 17,280 2,246,400.00

2023 19,008 2,471,040.00

Table 2.7

40
2024 20,909 2,718,144.00

2025 23,000 2,989,558.00

2026 25,300 3,288,954.00

shows the projected total demand and sales of Mi Amigos Bagoong

Alamang for 5 years.

Timetable of the Project

MONTH
ACTIVITIES 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
1.FS X X X
Preparation
2.Site X
evaluation
3.Purchase of X X X
Equipment and
office
supplies
4.Application X X X
of Business
Permits &
Licenses
5.Purchase of X X X
Raw Materials
6.Recruitment X X
of Personnel
7.Business X X
Start/Test
Pilot
Table 2.8

Detailed Product

Mi Amigo’s Bagoong Alamang is made up of shrimp paste and

beneficial ingredients that will undoubtedly be patronized by

41
market consumers due to its good delicious taste that will
satisfy your taste. The researchers wanted to offer this two-in-
one food product as your “sawsawan” and instant “ulam” with these
two enticing flavors of Original and Sweet and Spicy flavor. We,
Filipinos, are known for supporting local products that are a
part of our culture and industry, which is why Mi Amigos Bagoong
Alamang is ideal for everyone.

COMPETITION

Business operates in a highly competitive environment.

Different types of bagoong alamang compete fiercely to provide
the best possible value for a high-quality, long-lasting product.
Bagoong Alamang competition comes in various varieties such as
“dayok” and “tugnos”, both of which are in high demand and
supply. Different types of bagoong alamang in the market are also
offered with the majority of their profits being prioritized over
the health of consumers.

Our customer’s health is our top priority, and the fact that
Mi Amigos Bagoong Alamang has both health and profit benefits
motivates us to offer more and innovate in the next coming years.

Within a market business where direct competitors produce

the same or similar product to ours, we will ensure that our
product always stands out.

THE PRODUCT

Mi Amigo’s Bagoong Alamang is derived from the Spanish word

“mi amigos” which means “my friends”- referring to the
development of relationships with our valued customers. Our

42
product contains D.H.A, which is essential nutrient to our
bodies. It improves brain function, reduces inflammation, boosts
immune system, lowers the risk of fatal heart attacks, and
improves vision. This D.H.A is also beneficial for neural
development of infants during their first few years. For adults,
Docosahexaenic Acid (D.H.A) from bagoong alamang helps to
maintain blood pressure and cognitive function. Two improve
flavors will satisfy our customers’ health as well as their
cravings. Rest assured that every taste of our product will
become your favorite.

PACKAGING

Packaging is an important part of our product as a medium in

the marketing mix, promotional campaigns, a pricing settler, and
an instrument to create brand identity and shelf impact across
all product groups.

A secured packaging bottle and rigid container with

close-fitting stoppers and caps to protect our product from

43
spilling, evaporation, or contact with foreign substances. Our
product will be safe until it reaches our customer’s hand with
the use of sealing.

Mi Amigos take home after purchase the products will be

placed in a paper bag. Promoting a healthier lifestyle and
preventing environmental hazards that can destroy the
environment.

44
 We prepare a comfort packaging box suitable for
multiple purchases for our bulk orders, distributors, and
resellers. It will be convenient and secure to transport.

Item Quantity Price (php) Monthly Annual

Cost

Bottle Jar 61 box 250.00 15,250.00

183,000.00

Sticker paper 108 rim 55.00 5,940.00 71,280.00

Cartoon Box 25 bundle 150.00 3,750.00 45,000.00

Paper Bag 61 box 50.00 3,050.00 36,600.00

Plastic Seals 15 bundle 85.00 1,275.00 15,300.00

TOTAL: 590.00 351,180.00

Table 2.9
Shows the projected cost of packaging for the entire year.

MARKETING STRATEGY

In this feasibility study, the marketing strategy is

critical in building trust among customers in order to establish
a stable and well-known business. These marketing strategies
necessitate the 4P’s: Product, Price, Place (distribution), and
Promotion. Our company focuses more on marketing strategies to
ensure that our product is market-compatible and meets the needs
and satisfaction of our customers.

We also consider market penetration, Mi Amigos Bagoong

Alamang is committed to improving and providing excellent
customer service in ways they believe few industries have done.
We wanted to implement a broader marketing strategy to reach more

45
our customers through the use of radio, social networking,
advertisement, become a supplier to restaurants and stores, in-
store and walk-in promotions, not only to be recognized, but also
to build deeper relationship with our target consumers, whom we
trusted and considered as our partners in success, because we
believe marketing strategy represents an opportunity to create
additional competitive advantage and brand awareness.

PRICING

The researchers’ survey questionnaires were used to

determine the pricing of our two variety flavors. The researchers
distributed survey questionnaires with two price options. The
product pricing was the immediately adjusted based on its sole to
compensate for the pricing from the survey questionnaires.

Each flavor ranged from 125.00 pesos to 130.00 pesos

based on the results of our research, and settled on 130.00 pesos
as the final price after factoring in the cost of ingredients,
transportation, and so on. Any changes in the price of Mi Amigos
Bagoong Alamang will be factored into the factor that determines
the consumer’s ability to purchase the product while considering
the income of our proposed business.

Mi Amigo’s Bagoong Alamang

Variety Price

Original 110.00

Sweet and Spicy 110.00

Table 3.0

46
 shows the pricing of the Mi Amigos Bagoong Alamang and
projected to remain its price for the next 5 years.

Chapter V

FINANCIAL STUDY

In business management and financial aspect go hand in

hand. Proper management cannot push through without
capitalization. It is properly laid down through the use of the
financial statements.

This chapter include the sources of funds, balance

sheet, income statement, cost of goods sold and cost of sales.

1. Selling price of Mi Amigos Bagoong Alamang are the

following; and will have an increase of 5 pesos per year.

Mi Amigos Bagoong Alamang

Variety Price

Original 110.00

Sweet and Spicy 110.00

Table 3.1

2. Sales demand increase 5% per year.

3. Raw Materials increase 5% per year.
4. Plant and office supplies are assumed to increase 3% every
year as well as depreciation expenses.
5. Utilities expense is assumed to increase 3% every year.
6. Rental expense is 5,000.00 monthly and will remain constant
for the next five years.
7. All produced products are assumed to be sold.
8. Capital investment will be 500,000.00.

47
 Chapter VI

Management Study

This chapter discusses the business's overall organizational

structure. The management depicts the specific component or
aspect of each duty and responsibility, the flow of authority,
and the required personnel level. It includes an organizational
chart as well as the qualifications and responsibilities of those
involved in the creation of the corporate organization structure.
This will symbolize and emphasize the various occupations,
departments, and duties that will link employees to one another
and the management team. This creates a role for them to play in
order to better collaborate and achieve the company's goals. This
will enable management to plan all actions in order for the
company to become a competitive business that operates within its
resource and financial capabilities while utilizing new
technology.

Legal Structure and Form of Ownership

The proposed Mi Amigos Bagoong Alamang will be run as a

“Sole Proprietorship”. It is the most basic type of business to
operate, and there is no legal entity.

ORGANIZATIONAL STRUCTURE

OWNER/MANAGER/BOOKKEPER

48
 CASHIER LABORERS

Responsibilities DELIVERY DRIVER

 The Owner/Manager/Bookkeeper implements business

methods and marketing strategies. He is responsible
of the overall running of the business.

 The Cashier keeps a record of the business’s day-to-

day transactions. He receives payments either cash or
checks from the customers.

 Laborer is responsible in the processing of the

product.

 The Delivery driver is responsible for ensuring that

items are properly stacked and secured inside the
delivery truck and for securely delivering the
products to the customer within the deadline.

MANAGEMENT PERSONNEL REQUIREMENTS

Title Duties Qualification Qty Salary

o The person o Has in-
in charge of depth
running the understan
business. ding and
o Keeps all of is
the capable
Owner/ company’s of
Manager/ confidential managing 1 NONE
Bookkeeper records and the
accounts. business
o Has great
expertise
and is
capable of
managing the

49
 business.
o Is
responsible
for
processing
cash, debit,
credit, and
check
transactions
using a cash
register or
other point-
of-sale o College
Cashier device. They level and 1 10,200
balance, the has at
cash least a
register, year of
make change, being a
record cashier.
purchases,
process
refunds, and
scan
products for
sale, among
other
things.

50
 o In-charge of
conveying
packages and
other o Clean
commodities driving
from a mail record
Delivery o Active 1 9,600
facility to
driver driver’s
a personal
or company license
address.
They loads
and unloads
items and
navigating
to the right
address.

Monthly Salaries 19,800.00

Annual Salary {Inclusive of 13th Month Pay} 228,080.00

PHILHEALTH PREMIUM CONTRIBUTION TABLE

Employee Salary EMPLOYEE EMPLOYER TOTAL MONTHLY
Base SHARE SHARE PREMIUM
Cashier 9,100.00 100.00 150.00 350.00
Delivery driver 9,100.00 100.00 150.00 350.00
Total Monthly contribution 200.00 300.00 700.00

Table 3.1
PAG-IBIG CONTRIBUTION TABLE

EMPLOYEE EMPLOYER TOTAL MONTHLY

Employee SHARE SHARE CONTRIBUTION

Cashier 100.00 100.00 200.00

Delivery Driver 100.00 100.00 200.00
Total Monthly 200.00 200.00 400.00
Contribution

Table 3.2

51
 SSS CONTRIBUTION TABLE
Employee Monthly EMPLOYER – EMPLOYEE
Salary SOCIAL SECURITY EC TOTAL CONTRIBUTION
Credit ER EE TOTAL ER ER EE TOTAL
Cashier 9,100 807.50 427.50 1,235 10 817.5 427.5 1,245
Delivery 9,100 807.50 427.50 1,235 10 817.5 427.5 1,245
Driver
Total Monthly Contribution 1,550 810 2,490

Table 3.3

Regulatory Requirements

1. Barangay Business Clearance/Barangay Clearance

One of the prerequisites for obtaining a Mayor’s Permit is

that the proprietor obtain a Barangay Business Clearance or
Barangay Clearance.

2. Mayor’s Business Permit

The business will secure a Mayor’s Business Permit from the

Local Government Unit to operate legally.

3. Bureau of Internal Revenue {BIR}

The business will secure a certificate of

registration and Tax Identification Number {TIN} from
Bureau of Internal Revenue to file an Income Tax Return.

4. Department of Trade and Industry {DTI}

The owner must register the business name in order to

receive a Certificate of Registration, which allows the
business to lawfully function under the rules and
regulations.
5. Sanitary Permit

52
 The business will obtain a sanitary permit to confirm that
the facility has been inspected and meets the minimum
sanitary requirements.

6.Cedula

A permit or order issued by the government and a personal

registration tax certificate in the Philippines.

7.FDA (Food and Drug Administration)

is responsible for protecting the public health by

ensuring the safety, efficacy, and security of human and
veterinary drugs, biological products, and medical devices

Regulatory Requirements

Descriptio Amount

Barangay Clearance
180.00

Sanitary Permit 70.00

Mayor’s Permit
1000.00

FDA 1500.00

Cedula
50.00

Bureau of Internal Revenue

1,000.00

Department of Trade and Industry 200.00

TOTAL: 4000.00
Office Supplies

Item Quality Table 3.4

Price Annual Cost

Record Book 2 60.00 120.00

Office Receipt 10 100.00 100.00

Ball pen 2 65.00 130.00

Bond paper 2 250.00 500.00

Stapler 2 200.00 400.00

53
Fastener 3 50.00 150.00

TOTAL: 1,400.00
 Table 3.5
The table above shows listed the Office supplies needed to run a
business with its corresponding costs. The proponents assumed
that these costs will increase by three percent {3%} every year.

Office Supplies Projection

Year Total Cost

2022 1,400.00
2023 1,442.50
2024 1,485.26

2025 1,529.82
2026 1,575.71

Table 3.6

shows the projected office supplies cost for the next Five {5}
years which was assumed that there will be an increase of Three
percent {3%} annually.

Plant Equipment

Item Quantity Price Amount Estimated Depreciation

Useful Life Expense

Computer 1 P15,000.00 P 15,000.00 5 3,000.00

Cash Register System 1 P5,500.00 P 5,500.00 5 1,100.00

54
 TOTAL: P 20,500.00 P 4,100.00
Table 3.7

The above table shows the equipment to be used in operating the

proposed business with the corresponding unit cost. These will be
depreciated over its estimated useful life.

Chapter Vll

SOCIO- ECONOMIC STUDY

This chapter includes the socio-economic benefits of the proposed project. The proposed
project to help our localities and the fishermen of the country. Nowadays, it is important that
small entrepreneurs should realize the worth of creating or starting a business would largely
contribute to the socio-economic development of the country.

In this certain project, the researcher considers the whole part of the business especially
the social impact in the community.

PROJECT

 INCOME
 IMPROVE
STATUS OF
LIVING
55
 EMPLOYMENT
  TAXES
 GOVERNMENT
 COMMUNITY
DEVELOPMENT

CONTRIBUTION TO INCOME AND EMPLOYMENT

The main goal of a certain business is to have high income

especially in the part of the owners. A business should create a
harmonious relationship between the manager and the employees to
attain the main goal of the business which is to have income. All
workers need income to support their own needs and also for their
service rendered in the business. Building up this business is a
great opportunity for unemployed people to have a job. It will
also be their opportunity of having another source of income.

TAX CONTRIBUTION

The business is expected to give great contribution to

the government in the form of taxes. The tax payment from the
business would help the localities as well as the economy for its
future projects especially for the aquaculture projects that will
benefit fishermen. This would help the country to become more
progressive.

56
 APPENDIX A

Survey Questioner

Name (optional): ________________________ Age: _____

Occupation (Optional:) ____________________

Mi Amigo’s Bagoong Alamang two improve flavors made

with shrimp paste, pork and sardines as our main ingredients with
lots of tomatoes, spices and no preservatives added which is fit
for your health.

1. Do you have seafood allergy? If yes, are you still

willing to taste and buy our Mi Amigos Bagoong Alamang?

Yes No
2. Are you a fan of Bagoong Alamang?

Yes No

3. How do you find our Mi Amigos Alamang Bagoong with

sardines?

Very satisfying Satisfying Dissatisfying

4. What is your price range for Mi Amigos Bagoong Alamang?

57
 125-135 140-150
5. Which flavor is best for you?
Original Flavor Sweet and Spicy

Items Very
Satisfying Satisfying Dissatisfying
Taste
Packaging
Neatness of
Product

Price
APPENDIX B

Curriculum Vitae

Name: Analisa Manliguez

Birthday: July 9,1997

Age: 24 years old

Address: Purok-1 Mahayahay Kitcharao Agusan del Norte

Nationality: Filipino

Religion: Iglesia Ni Cristo

Email Address: analisamanliguez05@gmail.com

Mother: Mrs. Pernalita Manliguez

Father: Mr. Alipio Bustrillo

Educational Background

58
Primary: Gov. Boyles, Ubay Bohol

Secondary: San Isidro Technical Vocational High School

Tertiary: Caraga Institute of Technology

Course: Bachelor of Science in Business Administration

Major: Marketing Management

Curriculum Vitae

Name: Jenelyn M. Tubo

Birthday: November 22,1996
Age: 24 years old
Address: Baleguian, Jabonga Agusan Del Norte
Nationality: Filipino
Religion: Roman Catholic
Email Address: jenjen.tubo22@yahoo.com
Mother: Josephine M. Tubo
Father: Antonio D. Tubo

Educational Background

Primary: Magsaysay Elementary School

Secondary: Jagupit National High School
Tertiary: Caraga Institute of Technology
Course: Bachelor of Science in Business Administration
Major: Marketing Management

59
 Curriculum Vitae

Name: Diana Rose Molina

Birthday: May 19,1999
Age: 22 years old
Address: Purok-4 Poblacion Kitcharao Agusan Del Norte
Nationality: Filipino
Religion: Roman Catholic
Email Address: dm05191999@gmail.com
Mother: Virginia S. Molina
Father: Rosindo D. Jalbo

Educational Background

Primary: Kitcharao Central Elementary School

Secondary: Kitcharao National High School
Tertiary: Caraga Institute of Technology
Course: Bachelor of Science in Business Administration
Major: Marketing Management

60
 Curriculum Vitae

Name: Cindy D Juanite

Birthday: September 9,1997

Age: 24 years old

Address: P-Sampaguita Roxas Mainit Surigao del Norte

Nationality: Filipino

Religion: UCCP

Email Address: cjuanite3@gmail.com

Mother: Candelaria D Juanite

Father: Francis Rey C. Juanite

Educational Background

61
Primary: Roxas Elementary school

Secondary: Tubod Senior Highschool

Tertiary: Cagara Institute of Technology

Course: Bachelor of Science in Business Administration

Major: Marketing Management

Curriculum Vitae

Name: Rolaine J. Ragas

Birthday: April 29,1998
Age: 23 years old
Address: Roxas, Mainit, Surigao Del Norte
Nationality: Filipino
Religion: UCCP
Email Address: Roxas Mainit Surigao Del Norte
Mother: loreta J. Ragas
Father: Roldan B. Ragas

Educational Background

Primary: Roxas Elementary School 2011-2012

Secondary: Mainit National High School 2015-2016
Tertiary; Caraga Institute of Technology
Course: Bachelor of Science in Business Administration

62
Major: Marketing Management

Curriculum Vitae

Name: Beatriz T. Caumpay

Birthday: May 1,1999
Age: 22 years old
Address: Purok-5 Julio Ouano, Alegria Surigao del Norte
Nationality: Filipino
Religion: Catholic
Email Address: caumpaybeatriz@gmail.com
Mother: Marites T. Caumpay
Father: Rolly T. Caumpay

Educational Background

Primary: Ombong Elementary School

63
Secondary: Caraga Institute of Technology
Tertiary: Caraga Institute of Technology
Course: Bachelor of Science in Business Administration
Major: Marketing Management

Curriculum Vitae

Name: Jimuel Llano

Birthday: September 9,1997
Age:24 years old
Address: P-3 crossing Kitcharao Agusan Del Norte
Nationality: Filipino
Religion: Iglesia ni Cristo
Email Address: jimuelllano10@gmial.com
Mother: Eliza Llano
Father: Teodor Llano

Educational Background

Primary: Kitcharao Central Elementary School

Secondary: Alegria National High School
Tertiary: Caraga Institute of Technology

64
Course: Bachelor of Science in Business Administration
Major: Marketing Management

Curriculum Vitae

Name: Adrian John B. Boco

Birthday: February 25,1997
Age: 24 years old
Address: P-1 A, Baleguian, Jabonga, Agusan Del Norte
Nationality: Filipino
Religion: Roman Catholic
Email Address: johnjohnko14@gmail.com
Mother: Marpe B. Boco
Father: Dioscoro P. Boco

Educational Background

Primary: Baleguian Elementary School

Secondary: Candelaria Institute
Tertiary: Caraga Institute of Technology
Course: Bachelor of Science in Business Administration
Major: Marketing Management

65
 Curriculum Vitae

Name: Mark Anthony Diaz

Birthday: March 16,2000

Age: 21 years old

Address: P-4 Sangay Kitcharao Agusan Del Norte

Nationality: Filipino

Religion: Roman Catholic

Email Address: diazmarkanthony88@gmail.com

Mother: Marilyn D.Madjos

Father: Amado R.Madjos

Educational Background

66
Primary: Jose Bermudez Elementary School

Secondary: Kitcharao National High School

Tertiary: Caraga Institute of Technology

Course: Bachelor of Science in Business Administration

Major: Marketing Management

67