Republic of the Philippines

JOSE RIZAL MEMORIAL STATE UNIVERSITY

The Premier University in Zamboanga del Norte
Main Campus, Dapitan City
College of Business Administration

THE HANGING RICE (PUSO)

Business Plan

In Partial Fulfillment

Of the Requirements for the Degree

Bachelor of Science in Business Administration

Major in Marketing Management

Mary Grace Belardo Mindo

April 2022
Prepared for:
Dr. Maria Blanca S. Sy
Instructor
Jose Rizal Memorial State University- Main Campus
Sta. Cruz, Dapitan City, 7101

Prepared by:
Mary Grace Mindo
The Hanging Rice, CEO
Purok 3, Makugihon, Sta. Isabel, Dipolog City,
Zamboanga del Norte, 7100
09705448848
marygracemindo1999@gmail.com
 Table of Contents

Executive Summary

Introduction

Name of Business

Business Location

Nature of Business

Business Logo and Description

General Objectives of the Business

Target Customers

Prospect Customers

Financing Needed

Vision

Mission

Goals

Chapter I: Marketing Aspect

Marketing Analysis

Demand Analysis

Supply Analysis

Analysis of Competitors

Market Segmentation

Market Share

Product/ Services Strategy

Pricing
 Distribution

SWOT Analysis

Promotion Strategy

Competitive Advantage

Future Outlook of Trend

Chapter II: Technical Aspect

Manufacturing Process

Product Description

Physical Plant

Machinery and Equipment

Production Flow Chart

Product and Services

Size of Business

Office Equipment and Personnel

Description of Company’s Operation

Technology Utilization

Chapter III: Management Aspect

Forms of Ownership

Vision

Mission

Goals

Objectives

Capitalization
 Organizational Chart

Job Description and Specification

Manpower Requirements

Employment Process

Employees Policies

Salary/ Wages and Benefits

Terms and Conditions

Agreement
 Executive Summary

This proposal lays out a well-thought-out concept for establishing a strong connection
between our company and our prospective client.

The Hanging Rice is a food business at Purok 3, Makugihon, Sta.  Isabel, Zamboanga del
Norte, Dipolog City. This business applies the highest standards of corporate ethics and integrity.
The product that this business makes is puso, or hanging rice.

The Hanging Rice provides high-quality, ready-to-eat, cost-effective hanging rice

solutions to families, food stall/eatery operators, and organizations. We provide a product and
service that allows time-strapped families to cook healthy and pleasant meals on their own.

Hanging rice is utilized for daily use in modern culture and is thoroughly woven into the
fabric of our daily life. The palm leaves that encircle the rice inside the hanging rice will give it a
distinct smell, making it more pleasant than regular cooked rice. Furthermore, hanging rice is
simple to prepare, convenient to transport, long-lasting, and inexpensive.

.
 Introduction

The Hanging Rice is a food business located in Purok 3, Makugihon, Sta. Isabel, Dipolog
City, Zamboanga del Norte. This business operates with the highest level of integrity and
business ethics. Puso or hanging rice is the product that this business produces.

"Puso" is very popular in the Visayas region, especially in the provinces of Cebu, Bohol,
and Leyte, where roaming vendors sell it to travelers in bus stations, ship harbors, and public
markets. Hanging Rice, also known as "Puso," is a clever, if not eco-friendly, way to package
cooked rice. Rice is carefully placed into a woven heart-shaped or diamond-shaped pouch made
of young coconut leaves, then cooked or steamed in boiling water.

Slicing the palm leaves in half to expose the cooked rice is how Puso is served. When
you break it, it seems like you're eating a mammon or sharing the other half of the fiber - rich
foods with a friend. The packaging predates the present use of Styrofoam and cardboard boxes,
and it transports you back to simpler times. This product costs between php 2.50 and php 3.00
depending on the time of day.

The Hanging Rice will focus on the two market segments- Dapitan and Dipolog. By
capturing those primary always on-the-go customers, the balance of food stall owners need will
be drawn to us, the obvious headquarters for hanging rice business.

The store will be located just 50 meters ahead from the Tambayan sa mga Gahi
intersection at Purok 3 Makugihon, Brgy. Sta. Isabel, Dipolog City. There are approximately 800
transport vehicles per day traveling through the intersection.

Name of Business: The Hanging Rice

Business Location: Purok 3, Makugihon, Sta. Isabel, Dipolog City, Zamboanga del Norte

Nature of the Business: Food Business

Business Logo:

Description of Logo: The design is particularly similar to a hanging rice ("pusô"), which
represents the company's main product. The 'number of detected' green color scheme represents
the freshness of the coconut leaves we use in our goods, while the 'dark goldenrod' brown color
scheme has a vintage vibe, signifying the company's humble beginnings in the 1990s.

General Objectives of the Business: The Hanging Rice will be known throughout the
Zamboanga Peninsula as the one and only hanging rice business. The following are some of the
advantages of becoming a partner with The Hanging Rice:

 Special vendor discounts, including an unlimited supply of coconut leaves

 Sales and retail management advice and help
 Store design, fixturing, and layout that has been proven
 A well-thought-out merchandising strategy, assortment guidance, and inventory
management coordination
 Required seminars and workshops provide comprehensive training in all aspects of
hanging rice production.
 Assistance with the local advertising and online marketing campaigns

In a local community where people value healthy, affordable rice yet feel constantly
pressed for time, The Hanging Rice business offers an ultimate solution.
Target Customers: Food stalls and eatery owners have long been the key consumers of hanging
rice through bulk orders, hence they are the primary target market for The Hanging Rice.

Prospect Customer: Families make up the target market, with the female head of family acting
as the key buyer. These households are made up of busy working adults between the ages of 25
and 54 who have children at home. The prospect market's household income is less than 5,000
Php. This potential customer values convenience and is becoming increasingly "time–
challenged." These buyers, who are also mothers, understand the need of excellent nutrition for
themselves and their families, but find it nearly impossible to provide those rice in the most
effective manner due to time constraints.

Financing Needed

The start-up costs include:

 Store build out the store fixtures and operations 

 Inventory control, (computer and cash register)
 Opening inventory
 Franchise Fee

Start-up costs will be financed through a combination of owner investment, short-term

loans and lines of credit, and long-term borrowing. The start-up chart and table show the
distribution of the planned financing.

Start-up Funding
Start-up Expenses to Fund Php 5,800
Start-up Assets to Fund Php 18,400
Total Funding Required Php 24,200

Assets
Non-cash Assets from Start-up Php15,600
Cash Requirements from Start-up Php 2,800
Additional Cash Raised Php 0
Cash Balance on Starting Date Php 2,800
 Total Assets Php 18,400

Liabilities and Capital

Liabilities
Current Borrowing Php 2,000
Long-term Liabilities Php 15,000
Accounts Payable (Outstanding Bills) Php 200
Other Current Liabilities (interest-free) Php 0
Total Liabilities Php 17,200

Capital
Planned Investment
Investor 1 Php 7,000
Investor 2 Php 0
Other Php 0
Additional Investment Requirement Php 0
Total Planned Investment Php 7,000

Loss at Start-up (Start-up Expenses) (Php 5,800)

Total Capital Php 1,200

Total Capital and Liabilities Php 18,400

Total Funding Php 24,200

Vision
 The Hanging Rice is in the business of supplying families, food stall/eatery owners, and
organizations with high-quality, ready-to-eat, cost-effective hanging rice solutions. We offer a
product and service that enables time-strapped families to prepare nutritious and enjoyable meals
on their own.

Mission

• The Hanging Rice follows the highest standards of business ethics and integrity.

• We establish relationships with our customers, suppliers, employees, and other professionals
regardless of color, religion, sex, or other personal preferences.

• The reason we're in business is because of our customers.

• The Hanging Rice approaches all of its business dealings with the expectation of mutual
benefit. Our stores provide a secure, friendly, and supportive environment in which customers
and workers can get the most out of their time with us.

• The Hanging Rice is a good corporate citizen who cares about the environment and is involved
in the communities where it operates.

Goals

• Launch “The Hanging Rice” in the Sta. Isabel area in 2023.

• Educate the local market on the concept of hanging rice as a ready-to-eat rice alternative for the
local workforce.

• Provide high-quality, effective ready-to-eat rice solutions that offer a genuine alternative to
today's rice preparation options as well as a favorable consumer experience.

• Achieve profitability and other financial milestones as outlined in the financial projections of
the business.

Chapter I: Marketing Aspect

Market Analysis

If you reside in Mindanao or have visited the Zamboanga Peninsula and seen those
dangling bundles of aromatic, diamond-shaped steamed rice interwoven in coconut leaves, you
have experienced the centuries-old goodness of "puso," or hanging rice.

Puso is a distinctively "bisaya" food staple. When visiting Zamboanga del Norte, it's
impossible not to observe bundles of it hanging from street carts and restaurants. It is one of the
most prized "Bisaya" delicacies, and the craft of producing hanging rice is a centuries-old living
heritage.

The Hanging Rice business has been making hanging rice for a long time. My aunt
recalls her great grandma starting the business in the early 1990s in a little barrio in Sindangan,
Zamboanga del Norte. Since then, the family firm has become a household name in the
production of hanging rice. The Hanging Rice in Sta. Isabel will serve as the company's
Zamboanga Peninsula headquarters.

According to the 2015 census, the sister cities of Dipolog and Dapitan have a population
of over 200, 000 people, with over 40% of them belonging to a working class that is usually on
the go and has to consume rice three times a day. In addition, within a mile of the proposed
location, the 3.5-kilometer boulevard in Dipolog City features more than fifty food vendors.

The store will be located just 50 meters ahead from the Tambayan sa mga Gahi
intersection at Purok 3 Makugihon, Brgy. Sta. Isabel, Dipolog City. There are approximately 800
transport vehicles per day traveling through the intersection with government offices, medical
clinic, and elementary schools nearby.

What we intend to do is open another branch location in a strategic area, such as Sta.
Isabel will be able to serve the Dipolog area with hanging rice. As a result, customers will not
have to wait long for their orders to arrive from the Dapitan City store.
 While we concentrated on the immediate three-mile radius of food stalls and eatery
owners, residents in this densely populated region will bring in customers from a five- to seven-
mile radius.

We are certain that we would attract true hanging rice enthusiasts and finally establish
ourselves as Dipolog City's one-stop hanging rice producer/supplier.

Demand Analysis

Puso is an important component of our culture. Eating puso will be a terrific entrance for
anyone planning to visit the island and immerse themselves in its culture.

Hanging rice is utilized for daily use in modern culture and is thoroughly woven into the
fabric of our daily life. The palm leaves that encircle the rice inside the hanging rice will give it a
distinct smell, making it more pleasant than regular cooked rice. Furthermore, hanging rice is
simple to prepare, convenient to transport, long-lasting, and inexpensive.

Supply Analysis

The pusô is not simply a result of Filipino innovation, but also has profound roots in our
history as a "bisaya" iconic image. The Hanging Rice will provide the following:

-food pouches that are biodegradable, convenient, and traditional;

-prepackaged hanging rice that can be easily transported or delivered (this reduces the
amount of time it takes to package 'only rice')

-cooked in bundles for easier delivery to offices, stalls, restaurants, and homes;

-puso that have been kept free of dust and insects and last longer than regular rice

1E cooked hanging rice, which is immediately available when customers need it the
most, thanks to our entry into some of the biggest grocery chains and even government offices in
the area.

Analysis of Competitors
 Competition will always be on the business. The following are the competitors of The
Hanging Rice:

Name Quality of Pricing Years of existence in the

the products area
(Direct
competitors)
Jollibee Very Good Expensive, 20+ years
Php25/cup
Chowking Very Good Expensive, 10+ years
Php25/cup
McDonalds Very Good Expensive, 5+ years
Php25/cup
Mang Inasal Very Good Expensive, Php 10+ years
25/cup
(Indirect
competitors)
Other Good Moderately Number of years vary
Restaurants affordable, Php 10-
15/cup

Market Segmentation

The Hanging Rice will focus on two large market segments:

a. Food Stalls / Eatery owners along the 3.5 km Dipolog Boulevard and the 2.5 km
Dapitan Boulevard for bulk orders (minimum of 200 pcs.)
b. Consumers who are too busy to cook rice and are puso lovers.

Market Share
 There are more than a dozen restaurants and eateries in Dipolog that offer rice, but they
are more expensive, take longer to deliver, and some of those with competitive rates may not
have the same high-quality rice that The Hanging Rice produces.

Although there are apparent hurdles in terms of market share, the presence of a
significant, high potential is also indicated. We'll provide a reliable supply of hanging rice in a
recognizable manner at a reasonable price. Because we are the only producer of hanging rice in
the city, our aggressive take–out and delivery plans will offer us an advantage in gaining market
share before the competition adjusts or similar concepts develop.

Product / Service Strategy

The Hanging Rice employs a market-wide strategy of offering service. While we will
concentrate on our two key customer segments (storeowners (bulk buyers) and
residents/individual consumers), we provide a service that almost every consumer requires.

We'll build an environment that appeals to "all rice lovers," and the rest of our customers
will come because this is the "place" where we can buy cooked rice.

The store will be stocked in a bright and welcoming environment. Advertisements and
online marketing initiatives will be used to make hanging rice more appealing to the general
public than it is currently. Customers will eventually place orders (large-scale and minimum
purchase) at the store or on the online platform.

Our strategic assumptions are as follows:

1. Every person in Dipolog City has the potential to become a customer.

2. We will be able to attract customers from the nearby government offices because of our
location.

3. We will reach out to more new customers through marketing to our two target segments.

4. Through sponsorships, we will actively pursue community feeding projects.

Pricing
 In terms of large purchases and seasonal promotions, The Hanging Rice will give
reasonable pricing on our hanging rice supply:

- Php 3/pc for orders less than 500 pcs

- Php 2.50/pc for orders more than 500 pcs

We will be able to provide quality and freshness at reasonable prices, ensuring

that our customers get good value for their money. Our overall price strategy will be
based on:

1. Price of competitive products.

2. Price needed to be profitable.

3. Price sensitivity and its relationship to possible sales. The company's CEO,
COO, and V.P. will review pricing on a regular basis. and consultants in the field of
restaurant operations

Pricing may change as a result of competition and other factors.

Distribution
 A. Made to Order with free delivery
Provide a consistent supply of hanging rice to all previous customers who used to
order from far branches in Dapitan and nearby municipalities. All they have to do now is
call The Hanging Rice, place their orders, pay for the things online, and have the items
delivered to their storefronts in minutes.
B. Direct Sales –
Customers who come in without a reservation can order directly from the store
without having to wait in huge lines.

SWOT Analysis

STRENGHTS WEAKNESSES
1) First mover advantage 1) Restaurant industry is a crowded
2) Knowledge of all vital space
components of this opportunity  2) Margin for food is notoriously low
3) We are the target markets, so we 3) Requires change in consumer
understand our own kind behavior 
4. The location is owned and not 4) Have to hire new employees
rented including new hanging rice weavers
which will need rigorous training and
guidance 
OPPORTUNITIES THREATS
1) New approach on hanging rice 1) Rice from giant fast-food chains
productions 2) Ever-changing customer behaviors
2) Upscale store and ordering system 3) Distribution chains may be hard
3) People's interest in hanging rice is to replicate when expanding
sparked constantly

Promotion Strategy
 There will be three main strategies:

• To appeal to new millennials, use social media sites such as Facebook and Instagram to
promote your business online.

• Direct viral promotion through special offers and discounts presented bulk orders made by
government institutions close to the location of the restaurant to arise interest

• Personalization of the customer experience by offering a “Make-Your-Own-Hanging-Rice”

menu and a “Hanging Rice Weaver Contests” to maintain interest.

Competitive Advantage

Our initial competitive edge will be we are the only manufacturer and seller of hanging
rice on the Zamboanga Peninsula. Purchasing from a huge chain provides a sense of security.
Customers will be immediately drawn to our extensive selection and high-tech design.

Our exceptional customer service will set us apart from the competition once we've
established ourselves.

Future Outlook of Trend

In general, the food industry will continue to be a prosperous market in the coming years.
The demand for food will directly increase as the population of Dipolog City expands.

Chapter II: Technical Aspect

Manufacturing Process

 strips of Coconut Leaves

 Water
 Uncooked Rice

Preparation time: 1 hour to 2 hours

Cooking time: 30 minutes

To make puso, weave a diamond-shaped container for rice using coconut leaves. Next,
Fill 2/3 of the container with the rice. Then, submerge in boiling water for 30 minutes or until
cooked. Finally, remove from water and set aside.

Product / Service Description

Puso rice is boiled in a triangle casing made of braided coconut leaves in the Island.
Because the packets are frequently hung in bunches using the long ends of the leaves, it is also
known as hanging rice.

Physical Plant

Food preparation will take place in a room that is roughly 8 to 10 square meters in size,
well aired, and equipped with metal screen mesh large enough to keep flying insects such as
mosquitos, flies, and moths out.

Machinery and Equipment

- Large Cauldrons
- Basins
- Large Baskets
- Water Dispenser
- Rice Dispensers
- Scissors, knives, Large ladle

Production Flow Chart

Preparation

Washing
 Cooking
Boiling

Sales
Finish Product
Packing
Delivery

Product / Services

- Hanging Rice is available in quantities of 100 pieces each order.

- Within the Dipolog City region, delivery is free.
- Outside of the Dipolog area, there is a 20-peso delivery cost.

Size of Business

The Hanging Rice business will initially employ around 20 personnel:

- Store Manager
- Weavers (4 people)
- Cooks (3 people)
- Delivery Riders (10)
Office Equipment and Personnel

- Cash Register
- Desktop Computes
- Android Phones Issued to Delivery Riders who are awarded employee of the
month

Description of Company’s Operation

The store is open from 6 a.m. to 6 p.m., and orders must be placed at least 5 hours ahead
of time. Bulk orders (over 100 pieces) for same-day delivery will be accepted only before 1 p.m.
Bulk orders placed after 1 p.m. will be delivered the next day.

During store hours, walk-in customers are also accommodated.

Santa Isabel, Dipolog City, will be the major storage, production, and selling location.

Technology Utilization

On both Facebook and Instagram, the brand has a lot of followers. Orders can be placed
on both social media platforms. Customers are urged to use social media channels to place orders
in addition to putting orders over the phone and in person. Hashtags on social media are also
extensively utilized in posts. Paid Facebook campaigns can also be used.

Chapter III: Management Aspect

Forms of Ownership

Alfred John and Mary Grace Mindo, cousins and management partners, own and manage
The Hanging Rice. A partnership is an agreement between two or more people to pool their
financial resources and managerial skills to run a business and share earnings in a predetermined
proportion.

Vision

The Hanging Rice is in the business of supplying families, food stall/eatery owners, and
organizations with high-quality, ready-to-eat, cost-effective hanging rice solutions. We offer a
product and service that enables time-strapped families to prepare nutritious and enjoyable meals
on their own.

Mission

• The Hanging Rice follows the highest standards of business ethics and integrity.

• We establish relationships with our customers, suppliers, employees, and other professionals
regardless of color, religion, sex, or other personal preferences.

• The reason we're in business is because of our customers.

• The Hanging Rice approaches all of its business dealings with the expectation of mutual
benefit. Our stores provide a secure, friendly, and supportive environment in which customers
and workers can get the most out of their time with us.

• The Hanging Rice is a good corporate citizen who cares about the environment and is involved
in the communities where it operates.

Goals

• Launch “The Hanging Rice” in the Sta. Isabel area in 2023.

• Educate the local market on the concept of hanging rice as a ready-to-eat rice alternative for the
local workforce.

• Provide high-quality, effective ready-to-eat rice solutions that offer a genuine alternative to
today's rice preparation options as well as a favorable consumer experience.
• Achieve profitability and other financial milestones as outlined in the financial projections of
the business.

Objectives:

To meet the success that the business aims, these are the following ways to achieve the goal.

1. Continue serving the customers with deserve treatment

2. Always give them the quality products in a less expensive cost
3. Build customer – loyalty
4. Proper management of the company resources
5. Appropriate allocation of funds and distribution of expenses

It also wants to build a successful and well-known presence in the local food stand
market, expand into a number of locations as quickly as possible, and eventually become a
franchise in surrounding cities.

Capitalization

We feel our sales projections are conservative and that we will easily meet and exceed
them. In addition, several potential partners have expressed an interest in partnering with us,
which will help to enhance sales. Furthermore, because we started with a tiny amount of money,
our loan installments will be lower.

Organizational Chart
 As managing partners, the founders (who are cousins) will oversee the company's
expansion. All employees, as well as sales and marketing personnel, will report to them through
a sales manager (with extensive experience in the business) who has also been identified. A
general manager will be assigned to each of the future branch offices.

Job Description and Specification

Delivery Riders have a lot of expertise in the areas that the business services.

Delivery Riders are in charge of getting orders from the store to a customer's home or
office. Loading items, using navigation aids to arrive at the correct address, and delivering orders
to the correct destination are among their responsibilities.

Expert weavers with a strong background in the weaving of coconut leaves

Weavers who were previously hanging rice producers but had to cease owing to financial
constraints and applied to work as hanging rice weavers in our business instead. They must be
efficient, focused, and precise when weaving the coconut leaves.

Manpower Requirements

The Hanging Rice may need the following positions:

Down the road- delivery Riders, Cook and Expert Weavers

Employment Process

Hiring

The managing partners will be hands on in vetting the candidates, especially those who
are applying for management position and weavers.

Orientation

An onboarding orientation will be done for those newly hired employees, specifically
those who are hired as puso weavers.
Deployment

Delivery riders are deployed within the Dipolog and Dapitan areas.

Employees Policies

The Hanging Rice is a non-discriminatory workplace. We do not accept discrimination

based on protected characteristics (gender, age, sexual orientation, color, nationality, ethnicity,
religion, condition, or status).

We expect our staff to show up for work during their scheduled shifts. They should call
the store manager as soon as possible if they have an emergency that prohibits them from coming
to work one day. We will excuse unreported absences in the event of [severe accidents, acute
medical situations.] However, we should be informed when employees are unable to report to
work.

Regarding resignation, when they willingly inform the store manager that they will no
longer work for the organization, they are considered to have resigned. We also consider them
resigned if they fail to show up for work for 3 days in a row without warning.

Before resigning, employees are not required to give us an advance notice. However, for
the benefit of efficiency and to ensure that our workplace operates well, we request that they
provide at least 2 weeks’ notice, if possible. We ask that they give us at least a month notice if
they work in a highly specialized position (weavers).

Salaries / Wages and Benefits

The delivery rider’s salary will be 380 pesos a day.

The cook salary will be 350 pesos a day

Expert Weavers salary will be 300 a day.

These employees will be having an accident insurance but this will be used only if the
accident happen on the working hours.
 Terms and Conditions

The Hanging Rice and the client have entered into a legally binding contract through
these terms and conditions:

Amount Paid Upon Signing:

50% of the total payment should be paid upon signing.

Cancellation Policy:

The contract can be cancelled only 1 week after the agreement have signed.
 THE HANGING RICE

Agreement

This agreement is legally signed on this _______day of ________________, by and

between “The Hanging Rice” at Sta. Isabel, Dipolog City and __________________________.
By signing this agreement, the two (2) parties have agreed the terms and condition of the
business.
______MA. BLANCA S. SY______

Name and Signature of the Client

__ MARY GRACE MINDO_____

The Hanging Rice, CEO