CHAPTER I

THE PROBLEM AND ITS SETTING

Introduction

Fruit dehydration has been a long-standing practice due

to its longer shelf life and nutritional benefits, as the

dehydration process preserves most of the nutritional value

of the fresh fruits. Fruits that can be dehydrated include

grapes, dates, apricots, peaches, apples, and pears, which

are the most frequent types of dried fruits. Strawberries,

blueberries, bananas, pineapple, and a number of other

fruits have all been found to also be suitable for

dehydration process over the years. Dried fruit is made by

removing the water content of the fruit using various drying

methods such as sun drying, tray drying, freeze drying, or

specialized dryers, which are now in use.

Most of dried fruits are sold as candied fruit over

time, but they can also be made into tea products. Because

of the numerous health benefits of dried fruits, as well as

its sweet and delightful taste, all-natural and organic tea

products are becoming increasingly popular among people of

all ages. Since the country is still in the midst of a

pandemic, people are concerned about their health and they

are now purchasing products that will improve their health

and protect them from getting infected with the virus.

According to a nutritionist, dried fruit contains 3.5 times

the amount of fiber, vitamins, and minerals as fresh fruit.

Furthermore, dried fruit includes polyphenol antioxidants,

which are considered to provide a variety of health

benefits, including enhanced blood flow, improved digestive

health and immune system, and it can lower risk of a variety

of diseases.

As a result, the proponents of this feasibility study

want to establish and promote the brand HealTEA. This study

aims to develop a beverage business that utilizes all-

natural, organic, and preservative-free ingredients to

produce healthy and delectable tea variants. The aim of this

project is to highlight and use the process of fruit

dehydration which is gradually becoming a known industry

especially now that the health of the people is at risk,

with the Covid-19 still lingering. HealTEA will offer a

wide-variety of tea variants that caters to health-concerns

of people while using organic ingredients and sustainable

materials that will aid in health-maintenance as well as

environment preservation.

The proponents of this study want to offer a variety of

tea packs. Each tea packs contains different kinds of dried

fruit combinations. Furthermore, the researchers want to

make this new and improved dry fruit tea product available

to a wide range of markets by introducing it through online

and offline stores.

Statement of the Problem

The purpose of this study, titled "A Feasibility Study

of Establishing the Brand HealTEA: Organic Dried Fruit-based

Tea Products," is to assess the viability of selling other

variants of tea products made with organic ingredients.

Specifically, it aims to answer the following

questions:

1. How may the marketing aspect be studied in terms of:

1.1 product description;

1.2 pricing strategy;

1.3 marketing strategy;

1.4 sample size; and

1.5 demand and supply forecast?

2. How may the technical aspect be studied in terms of:

2.1 production process;

2.2 equipment/materials;

2.3 plant location; and

 2.4 plant layout?

3. How may the management aspect be studied in terms

of:

3.1 form of business organization;

3.2 organizational structure;

3.3 organizational policies; and

3.4 job analysis?

4. How may the financial aspect be studied in terms of:

4.1 initial capital requirements;

4.2 sources of funds;

4.3 financial statements; and

4.4 financial analysis?

5. What socio-economic benefits could this proposed

business provide?

Significance of the Study

Many people have difficulty finding inexpensive and

healthy beverages that are free of preservatives and made

from natural ingredients. This study will provide them with

a variety of tea variants that will address their health

concerns and will use organic ingredients to aid in both

health maintenance and environmental preservation.

The following will also be benefited by the study:

 The Researchers. The researchers will benefit from the

study because it will broaden their skills and knowledge

with this type of business. They can use these skills and

knowledge that they have gained on their future profession.

Consumers. The researchers believed that the study

would benefit them because the product offered has many

health benefits that will help them maintain a healthy

lifestyle.

The Future Researchers. This study can be used as a

reference or guide for future researchers who will carry out

the same study.

Potential Investors. This research will assist

investors in determining whether it is valuable investment

to invest in this type of business.

Community. This will help the community in creating job

opportunities once the project is pursued.

Scope and Delimitation of the Study

This study focuses on the feasibility of establishing

the brand HealTEA: organic dried fruit-based tea products.

The target market for this product will be Jaen, Nueva Ecija

residents with ages 12 and above, and it will be based on

marketing, technical, management, and financial aspects of

business. Furthermore, the product will be distributed

through direct selling, and online sales from customers in

Nueva Ecija who wish to purchase our product are also

accepted.

As to Marketing Aspect, the scope of the study was

limited to the description of the product to be offered, the

packaging of the product, the business's demand and supply,

the level of competition that the business will face, and

the marketing techniques to be used to influence consumers

to purchase a product and maintain a competitive advantage

over other market players.

As to Technical Aspect, the project determined the

proposed location as well as the equipment and materials

that would be used to manufacture the product. It also

described the production processes used to produce the goods

on offer.

As to Management Aspect, the study outlined the most

appropriate form of business organization for this project,

as well as the organization's structure.

As to Financial Aspect, this study determined the

amount of capital needed to launch this type of business, as

well as the best sources of funding. The projected financial

statement for a 5-year period, as well as the financial

analysis, were also presented.

Definition of Terms

The following terms are defined to help readers

understand and clarify what is presented in this study.

Dehydration. The process of removing water from food by

circulating hot air through it, which prohibits the growth

of enzymes and bacteria.

Demand. An economic principle referring to a consumer's

desire to purchase goods and services and willingness to pay

a price for a specific good or service.

Financial analysis. Refers to an assessment of the

viability, stability, and profitability of a business, sub-

business or project. 

Financial statements. Are formal records of the

financial activities and position of a business, person, or

other entity. They include the income statement, balance

sheet, and statement of cash flows.

Marketing mix. It is a foundation model for businesses,

historically centered around product, price, place, and

promotion (also known as the "4 Ps"). It is a combination of

factors that can be controlled by a company to influence

consumers to purchase its products.

Organic. Produced or involving production without the

use of chemical fertilizers, pesticides, or other artificial

agents.

Organizational structure. A system that outlines how

certain activities are directed in order to achieve the

goals of an organization. These activities can include

rules, roles, and responsibilities.

Supply. A fundamental economic concept that describes

the total amount of a specific good or service that is

available to consumers. 

Target market. A particular group of consumers at which

a product or service is aimed.

Tea. An aromatic beverage prepared from tea leaves by

soaking them in boiling water.

 CHAPTER II

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter will present information obtained from

both foreign and local sources that is pertinent to this

study. The researchers' utilization of previously published

articles and research studies provided them with ideas and

information that aided them in undertaking this feasibility

study as well as analyzing their findings.

Local Literature

The Philippines has a strong coffee culture due of its

high-quality coffee beans. It is widely farmed throughout

the country, with each region offering a particular kind of

coffee beans, however, tea culture is becoming popular

recently. Looking back before pre-colonial times, tea

culture began in the Philippines with the influence of the

Chinese, but it stopped abruptly and did not flourish

throughout their period. Tea culture developed only after

the Spanish and Americans introduced coffee and chocolate to

the Filipinos in the country because of the health benefits

it can bring to the people. Otherwise, tea would not have

received attention in the country.

 Nowadays, drinking tea has become part of the culture

in the Philippines. People drink tea for a range of health

benefits, including lowering the risk of heart attack and

stroke, protecting the bones, and boosting the immune

system, among others. Teas with local flavors can be found

throughout the country. Salabat, also known as ginger tea,

is a traditional Filipino tea that can aid with coughs,

colds, flu, and stomach aches. Lemongrass Tea is another

example of a local tea. Lemongrass is a tropical plant with

long, thin leaves that is known locally as "tanglad” (Tek-

Ing, 2020). In particular, various plants and herbs are used

to make tea in the Philippines, and as tea has grown in

popularity, people are now substituting fruits, specifically

dried fruits, for plants and herbs as the major ingredient.

According to the Department of Science and Technology,

food preservation is applied in order to lessen agricultural

losses such as, cracking, abrasion, rotting, and mechanical

damages in food. The common type of food preservation is

food drying. Food drying is a method of eliminating water

from food and using high temperatures to extend the shelf

life of fresh goods such as fruits and vegetables. Most

dried fruits, in particular, are sold as candied fruit over

time, but they can also be used to make tea products.

 Tea made from dried fruit, such as grapes, apples,

bananas, pineapple, dragon fruit, papaya, kiwi, and other

fruits, has recently become widely available in local stores

throughout the country. According to Ane King, an

entrepreneur, fresh fruits that are dehydrated using Korean

techniques and technology can keep a high degree of vitamin

and mineral effectiveness without the use of preservatives.

Toxin elimination, body purification, weight loss, anti-

aging, aid for healthier skin, metabolism enhancer,

improvement in digestive system, improvement in blood

circulation, cancer prevention, and antioxidants are just a

few of the health benefits that natural dried fruits tea can

provide, just like traditional plants and herbs tea. The

health benefits of dried fruit tea can help individuals

avoid getting infected with the current virus that is

sweeping the world. Nutrition and hydration are essential.

People who consume a well-balanced diet have stronger immune

systems and are less likely to get chronic illnesses and

infectious diseases (WHO, 2021).

Local Studies
 Tea industry business opportunities in the Philippines

have changed substantially in recent years as customer

behavior has changed. Tea drinkers nowadays are more

interested in tea drinks that can provide them with specific

health benefits, which has resulted in an increase in demand

for healthy tea and herbal blends. Furthermore, the

perspective of tea has changed, with many younger consumers

viewing it as a sensual and wellness beverage, especially

given the current pandemic. In addition, the introduction of

tea combination menus is another interesting trend on the

tea market. Different restaurants have tried to enhance the

drinking experience by providing a several course tea

combination menus, since customers are increasingly

preferring for unique and experience-driven items (Williams

& Marshall, 2020).

In terms of the drying process, a study found that

using a solar drying system is a better method than using a

sun drying system for the drying process. Solar drying uses

solar energy to heat air to dry any food substance that is

loaded, which reduces agricultural product waste and aids in

the preservation of agricultural products. Meanwhile, there

are problems that can occur when using the sun drying

method, such as direct sunlight exposure, pest and rodent

risk, a lack of sufficient monitoring, and the increased

expense of the mechanical dryer (Sorsana & Sobejana, 2020).

Foreign Literature

A scientific workshop held in the United Kingdom

investigated the potential contribution of traditional dried

fruits to public health, identified gaps in the evidence,

and addressed research priorities. Among the topics covered

in the presentations were the categorization and composition

of dried fruits, as well as the polyphenol content of dried

fruits and their potential contribution to health.

Dried fruits have been a staple of the human diet for

thousands of years as a way to preserve seasonal fruits and

as a tradeable commodity. The term "dried fruit" refers to a

variety of processing methods. Dates, figs, prunes, raisins,

apricots, apples, and pears are traditional dried fruits

that have no added sugar or juice and are formed by the

removal of water. Traditional dried fruits are classified as

"fruit" by the WHO, and their sugar content, like fresh

fruit, is not defined as "free sugars" (WHO 2015; Swan et

al. 2018). In contrast, some dried fruits, such as

blueberries, cranberries, cherries, strawberries, and

mangoes, are typically infused with sugar syrup or fruit

juices prior to drying–though these fruits can also be dried

without any infusion, adding to consumer confusion. Some

dried fruits are brighter in color than natural sun-dried

fruits because sulfur dioxide is added.

Traditional dried fruits have the same nutrient content

as fresh fruits, but they are more concentrated. With the

exception of vitamin C, traditional dried fruits are thus

good sources of a variety of micronutrients. According to

Scientific Advisory Committee on Nutrition (2015), increased

consumption of traditional dried fruits from current low

levels would contribute to the 30g/day fiber

recommendations, which have been linked to a lower risk of

non-communicable diseases such as colorectal cancer,

coronary heart disease, and type 2 diabetes. Increasing

consumption of traditional dried fruits may also contribute

to other potential mechanisms for lowering the risk of T2DM

(type 2 diabetes), such as the impact of polyphenols on

sugar absorption and metabolism, as well as any potential

benefit of dried fruit as a snack on appetite and weight

control. There was general agreement that traditional dried

fruits, which are high in fiber, low in fat, and a

concentrated source of various micronutrients, should be

promoted more as part of the diet. Dried fruit, as opposed

to some fresh fruit, is more convenient for consumers and

has a longer shelf life. Dried fruit does not need to be

eaten in place of fresh fruit or vegetables in countries

where it is recommended to eat a minimum of five portions of

fruit and vegetables per day, but it can be included in

addition. If a substitution is required, it was suggested

that dried fruit would be preferable to fruit juice and

smoothies.

Because dried fruit is a high-fiber, nutritious food,

low intakes could be targeted for improvement. More needs to

be learned about dried fruit consumption in order to

evaluate the contribution of composite foods to intakes via

dietary modeling. Consumer understanding of "traditional"

and other descriptors used for dried fruits, as well as

consumer understanding of food labels, particularly the

distinction between total and free sugars, and nutritional

values per portion and per 100 g, would aid in identifying

effective ways to communicate with consumers.

Furthermore, studies performed in the USA in the years

2011–2016 demonstrated that the highest tea consumption was

observed in elderly people aged 51 to 70 years, non-Latin

Asians, white people, and people with higher education and

income (Izabela Zieniewska et al., 2020). However, young

children can also drink tea. Tea can be consumed by

children, but only herbal teas should be served. Tea

contains caffeine, a stimulant, and is not recommended for

children under the age of 12. It can cause everything from

insomnia and nervousness to increased urine output and low

sodium/potassium levels. Herbal teas, which do not contain

caffeine, should only be served to children aged 4 to 10.

Black tea, green tea, or milk tea can be served to children

aged 12 to 13. Because fruit tea isn't technically "tea," as

it isn't made from the tea plant (camellia sinensis) and is

simply dried fruits - sometimes with spices, flowers, and

herbs added - one of its best qualities is that it is

naturally caffeine-free. As a result, it is safe for

children to consume.

Foreign Studies

Tea is a popular, inexpensive, non-alcoholic beverage

that is popular all over the world. Tea, the most commonly

consumed beverage after water, contains significant amounts

of polyphenols, vitamins, amino acids, and volatile

compounds.

Because of its appealing taste and antioxidant

properties, flavored tea has grown in popularity. Fruits,

herbs, and aromatic plants are rich in phenolic compounds

such as phenolic acids, flavonoids, and anthocyanins, all of

which have significant antioxidant properties in vivo and in

vitro (Pyrzynska et al., 2012). Sahin (2010) determined the

total phenol, total flavonoid, and total anthocyanin

contents in various fruit teas – pomegranate, peach, lemon,

blueberry, apple, apricot, blackberry, and strawberry.

In recent years, there has been a surge of interest in

nutrition and preventive health care in the development and

testing of natural bioactive and antioxidant active plant

materials. Green tea contains significantly more polyphenol

substances than black tea, which are known for their radical

scavenging capacity. Similarly, fruit teas are made by

combining fruits such as lime, pomegranate, blueberry, and

apple in the manufacturer's preferred ratio. Fruit teas have

gained popularity due to their pleasant taste and exemplary

health benefits as effective natural antioxidant sources for

food products and as functional dietary food supplements due

to their remarkable total polyphenol content as bioactive

substances and significant antioxidant and radical

scavenging capacity.

According to Tanaka (2009), tea has been mentioned as a

medicinal beverage that provides significant health benefits

when consumed on a regular basis, such as the prevention of

cardiovascular diseases, cancer prevention, oral health

promotion, and digestive health promotion. Tea's medicinal

value is due to the presence of significant amounts of

polyphenols and flavonoids. Today's market places a high

value on product consistency. Observational studies have

repeatedly demonstrated that diets rich in plant-based foods

and beverages are associated with a lower risk of chronic

diseases such as cardiovascular disease and some types of

cancer (Mckay & Blumberg, 2007). Blends can be made to suit

different tastes, times of day, and foods. Blending success

is usually the result of trial and error, as well as

experimentation and tasting. Teas can be flavored at home by

adding a few dried flower petals, spice pieces, or dried

herbs.

Modern drying technology allows for the production of

dried fruits containing high concentrations of bioactive

compounds. Functional ingredients may also be added to such

products. The use of dried fruit as a carrier of functional

ingredients for consumers is essential for the successful

launch of this type of product on the market. Moreover, the

use of dried fruit as a carrier of functional ingredients is

a relatively new concept, despite the fact that the

functional properties of such products stem from the nature

of the drying process, in which the removal of water results

in a natural concentration of healthy fruit components.

Although traditional drying technology results in

significant losses of bioactive compounds, dried fruit can

still be a valuable source of not only energy, dietary

fiber, and minerals, but also anti-oxidant activity. The

matrix of fruits and vegetables can be fortified with

health-promoting compounds such as prebiotics, vitamins, or

minerals thanks to the use of modern technology. This is

regarded as a critical area for future research into the

development of functional food markets (Alzamora et al.,

2005; Fito et al., 2001).

Justification of the Study

The researchers discovered that the project is feasible

and viable, and they guarantee that this study is not a

reproduction or copy of other studies. This study is the

result of the researchers' collaborative efforts.

This study's scope has some similarities and

differences with other study results. It is similar in terms

of data collection and processing techniques, but differs in

terms of explanation and reasoning. It also differs in terms

of the study's content, location, and, most importantly, the

overall context of the findings as provided here.

 CHAPTER III

METHOD PROCEDURE AND SOURCES OF DATA

 This chapter describes the method used in conducting

the study and how the researchers will gather the necessary

data and information that will be used in the study. The

statistical treatment of data and the financial analytical

tools used in the study are also covered in this chapter.

Research Method Used

In order to conduct this feasibility study, the

researchers used the descriptive survey method of research.

As a descriptive study, it collected detailed and

factual information to describe existing phenomena. It

systematically described the situation or area of interest

factually and accurately. This method allows researchers to

explain and comprehend the behavior of the sample population

in great detail.

Data Gathering Techniques

The researchers gathered data from both primary and

secondary sources in undertaking this feasibility study.

Data from primary sources, such as interviews and

questionnaires, were used. Secondary sources, such as the

library and the internet, were also used to collect data for

this study.

Interview. The researchers conducted an interview with

existing sellers of the same product in order to provide us

with vital information on how we, the researchers, will

improve our product offerings to our target market.

Questionnaire. To assess the feasibility of the

proposed business, the researchers developed a self-

administered questionnaire and distributed it to the

respondents of the study, who are residents of Jaen, Nueva

Ecija.

Library. To gather the necessary information for this

study, related reading materials and references from the

library were also used.

Internet. The researchers gathered useful information

through the use of a modern technique that provided them

with quick access to the information they needed for the

proposed business.
Statistical Treatment of Data

Certain statistical treatments were applied to the data

collected in this study. To improve the presentation and

interpretation of the results, the data was coded, tallied,

and tabulated. The following statistical methods were

employed:

1. Frequency and Percentage

The respondents were classified using frequency

and percentage distributions based on their age and

gender. The frequency represents the respondents'

actual response to a specific question or item in the

questionnaires. The percentage of each item was

calculated by dividing it by the total number of

respondents who completed the survey. The formula used

in the implementation of these strategies is:

%= (f/n) x 100

Where:

% = percentage

f = frequency

n = number of cases or total sample

2. Weighted Mean

It is used to calculate the average responses of

the different options provided in the various sections

of the questionnaire:

Weighted mean = T (wf)

Tf

Where:

T (wf) = total or sum of weight times frequency

Tf = N = total or sum of the frequencies

3. Ranking

In addition to percentage, this is a descriptive

method for describing numerical data. The ranking was

used in the study for comparative purposes as well as

to share the importance of the items examined.

4. Likert Scale

The researchers used a five-point rating scale or

Likert scale to assess the intensity of a feeling,

emotion, or attitude in order to collect the necessary

data.
 The weighted mean for the variables and statements

were verbally interpreted using the following scale:

Numerical Verbal

5 Strongly Agree (SA)

4 Agree (A)

3 Neither Agree nor Disagree

(N)

2 Disagree (D)

1 Strongly Disagree (SD)

Numerical Verbal

5 Always

4 Sometimes

3 Neutral

2 Unlikely

1 Never
Financial Analytical Tools

The analytical tools used by the proponents of this

study to determine the overall viability and feasibility of

the proposed business are shown below.

1. Payback Period (PP)

This analytical tool measures the time it takes for the

business to recover its initial investment. This method

is calculated in terms of years and months based on the

business’s lifespan. The payback period is computed as

follows:

Initial Investment
Payback Period =
Annual Cash Flow

2. Return of Investment (ROI)

This analytical tool is used to calculate the

company's rate of return in relation to the cost of the

investment. ROI is calculated by dividing a company's

net income by the investment's original capital cost,

which may be expressed as follows:

 Average Net Income
Return on Investment =
Average Investment

3. Net Present Value (NPV)

This analytical tool is used to determine the current

value of the business's generated cash inflows over the

initial investment. The following formula can be used to

express it:

PV of Cash Inflows XX

Less: Initial Investment XX

Net Present Value (NPV) XX

CHAPTER IV

PRESENTATION, ANALYSIS, AND INTERPRETATION OF DATA

This chapter presents, analyzes, and interprets the

data collected by the researchers for this study. The

contents of this study were categorized by the researchers

in order to simplify data presentation and analysis. The

contents are organized as follows: marketing, technical,

management, and financial aspects of business, so that

readers can appreciate the researchers' interpretation for

this study.

I. Marketing Aspect

Because marketing is so important to a business’

survival, it is regarded as one of the most important

aspects of starting a business. This aspect covers the

marketing mix model (4 Ps) that the researchers used to

determine the target market, proposed business location, and

product description. It also includes the pricing strategies

that will be used, as well as the promotional activities

that will be carried out by the business. The demand and

supply analysis are included to determine the proposed

business' projected market share.

Product description
 HealTEA utilizes all-natural, organic, and

preservative-free ingredients to produce healthy and

delectable tea variants.

To make dried fruit tea products, the best quality

fresh fruits are dehydrated on a dehydrator. The best part

about this product is that there is no need for added sugar

or preservatives because the dried fruits release their

natural flavors during the tea infusion. As a result,

consumers of this product will receive health benefits at a

low price. It can be enjoyed warm or cold after steeping the

dried fruit in hot water, depending on personal preferences.

Dried fruits are best consumed within 6 months of drying,

but their shelf life can be extended up to 12 months if

properly stored. To ensure the best quality, the product

must be kept in a cool, dark, and dry place. It is best to

store the dried fruits in an airtight jar after removing

them from the pouch.

The product will be available in three different

flavors. The specific descriptions of the proposed dried

fruit tea flavors are provided below.

 Table 1. Product description

Product Description

Apple flavor An apple-flavored dried fruit tea that is a

little sour and bitter, but mostly sweet.

Apple is high in antioxidants, vitamins,

fiber, and other nutrients. They may help

avoid a variety of health conditions due to

their wide nutrient composition.

Orange flavor Dried fruit tea with an orange flavor has a

sweet-acid taste. Oranges include a variety

of different plant chemicals and antioxidants

that may help to reduce inflammation and

fight disease. Oranges are a low-calorie and

high-nutrient citrus fruit.

Lemon flavor Lemon-flavored dried fruit tea has a sour,

acidic taste. Lemons are not only a very

healthy fruit, but they also have a distinct,

pleasant flavor and aroma. Lemons are high in

vitamin C, soluble fiber, and plant

compounds, which provide a variety of health

benefits.
Pricing strategy

The proponents of the study used cost plus pricing

strategy to determine the selling price of its products. To

arrive at a selling price, cost plus pricing involves adding

a markup to the cost of goods and services. In this

approach, the direct material cost, direct labor cost, and

overhead costs for a product are added together, and a

markup percentage is added to the total to determine the

product's price.

Marketing strategies

The researchers used the marketing mix model (4 P’s):

product, price, place, and promotion as part of its

marketing strategies.

1. Product

HealTEA offers an alternative to the common powdered

teas found in stores. Similar to these teas, dried fruit tea

provides consumers with various health benefits because it

is made from fruits that are high in nutrients such as

vitamins and minerals that our bodies need to stay healthy.

Customers can select from a variety of flavors of HealTEA

dried fruit tea products.

 Table 2. Product list

Product Sample Product

Apple flavor

Orange flavor

Lemon flavor

2. Price
 HealTEA provides healthy yet high-quality tea products.

Customers' ability to pay is taken into account by

proponents because most buyers are price-driven consumers

who want a product with affordable prices but high quality.

The price depends upon what flavor they want to buy.

Furthermore, the price can be adjusted based on changes in

the price of the raw materials used and other factor such as

the competitor’s price. The following is a list of the price

ranges for various flavors.

Table 3. Product price list

Products Size Prices

Apple flavor 10 grams P24

Orange flavor 10 grams P30

Lemon flavor 10 grams P25

3. Place

The business will not have a physical shop, but the

products will be available for purchase online.

Additionally, there will be distribution channels through

which the products will be distributed to various stores and

businesses in Jaen, Nueva Ecija to reach a wider market. The

production plant will be located in Ocampo Rivera, Jaen,

Nueva Ecija, where one of the business partners resides.

 4. Promotion

As part of the business’ promotional activity, HealTEA

has flyers that will be distributed to inform people about

the existence of the business. The logo, address or

location, social media accounts, and all relevant

information are all included. The business will use social

media platforms such as Facebook, Instagram, and Twitter to

promote its products, as this is becoming increasingly

popular as an effective method of promotion. Social media

platforms can be an excellent tool for promoting HealTEA

because they not only disseminate and share information

quickly and easily, but they can also reach a large number

of people. HealTEA will also use word-of-mouth promotion by

asking for feedback or reviews from customers who make

online purchases.

Packaging

Aside from promoting the business by distributing

flyers and posting it on social media pages, the company

will also make the package design appealing and pleasing to

the eyes in order to attract customers.

 Packaging is significantly vital in product promotion.

Product packaging also serves to inform present and

potential customers about the product, which helps to

increase brand awareness and recognition.

The dried fruits are packed in a simple kraft stand-up

pouch with the HEALTEA logo on the front. A kraft stand-up

pouch is a type of flexible packaging that stands upright on

its bottom to be displayed, stored, and reused since

consumers nowadays are looking for more environmentally

friendly and sustainable packaging. Different dried fruit

flavors are packaged separately. In addition, if a single

online order totals six pieces of dried fruit tea products,

it will be packaged in a box to make it more appealing and

convenient for the customers.

 .

Figure 1. Sample Packaging

Target market

The target market of HealTEA will be individuals aged

12 and above. Tea can be consumed at a young age, according

to multiple articles. Moreover, because the main ingredient

is fruit and there are no preservatives added, it will

undoubtedly be safe for them to consume, as well as for

older people. Individuals can purchase our products

regardless of their gender or profession. The target market

will be primarily people from Jaen, Nueva Ecija, but

individuals within the Philippines who wish to purchase our

product are also welcome to do so via online purchase. There

will also be distribution channels in order to reach a

larger market.

Figure 2. Channel of Distribution

HealTea: Dried Fruit Tea Shop

1. RNR Mini Grocery Store

2. Maria Ine Store
3. Annie’s Store
4. One and Mel Store
5. Jay-Jay Pharmacy
6. F.V Espiritu Pharmacy
7. Jaen Pharmacy
8. Bien’s Pharmacy
9. Kenneth Grocery
10. TBB Trading
11. Hallel Pharmacy
12. Yambot Pharmacy
13. LDS Merchandise
14. Forsha Mini Grocery
15. Varon Grocery Store

The distribution channel through which the proposed

business will distribute HealTEA dried fruit tea products to

the target market is depicted in Figure 2. Since these

stores and pharmacies are in the market town of Jaen, the

products are easily accessible to the target market.

Sample size

Due to the current pandemic situation caused by the

spread of the COVID-19 virus, social gatherings are limited

and it is not safe to interact with different people;

therefore, the number of respondents for this study is

limited to 100, but the researchers believe that the data

gathered is sufficient to be used in this feasibility study.

Demand Forecast

The researchers were able to forecast the future demand of

the business by using data gathered from individuals in Jaen

and their annual growth rate increase of 1.68 percent. The

factors used to calculate effective demand are shown in the

tables below.

Table 4. Potential Demand

Year Total actual % of % of Potential

population individuals individual demand per
 who drinks s who are day
tea aware of
the
product
2021 66,072
2022 67,182 83% 48% 26,765
2023 68,311 83% 48% 27,215
2024 69,458 83% 48% 27,672
2025 70,625 83% 48% 28,137
2026 71,812 83% 48% 28,610

Table 4 represents the potential daily demand. 83

percent of the respondents said they drink tea, and 48

percent said they are aware of the dried fruit tea product.

Table 5. Effective Demand

Year Potential % of % of Effective

demand per day individuals individual demand per
who are s who will day
willing to choose
buy dried dried
fruit tea fruit tea
products
2022 26,765 86% 50.33% 11,585
2023 27,215 86% 50.33% 11,780
2024 27,672 86% 50.33% 11,978
2025 28,137 86% 50.33% 12,179
2026 28,610 86% 50.33% 12,383

The effective demand is shown in Table 5. 86 percent of

respondents said they would buy dried fruit tea products,

and 50.33 percent said they would prefer dried fruit tea

over other drinks.

 Table 6. Total Annual Demand Frequency
Effective Number Total
Yea demand % of frequency of of
r consumption/purchase times
a year
11,585 40% Once a month 4,634 12 55,608
11,585 29% Twice a month 3,360 24 80,632
1 11,585 12% Thrice a month 1,390 36 50,047
5% Four times a 48
11,585 month 579 27,804
TOTAL 9,963 120 214,092
11,780 40% Once a month 4,712 12 56,542
11,780 29% Twice a month 3,416 24 81,987
2 11,780 12% Thrice a month 1,414 36 50,888
11,780 5% Four times a 589 48 28,271
month
TOTAL 10,13 120 217,688
1
11,978 40% Once a month 4,791 12 57,492
11,978 29% Twice a month 3,473 24 83,364
3 11,978 12% Thrice a month 1,437 36 51,743
11,978 5% Four times a 599 48 28,746
month
TOTAL 10,30 120 221,346
1
12,179 40% Once a month 4,872 12 58,458
12,179 29% Twice a month 3,532 24 84,764
4 12,179 12% Thrice a month 1,461 36 52,612
12,179 5% Four times a 609 48
month 29,229
TOTAL 10,47 120 225,064
4
12,383 40% Once a month 4,953 12 59,440
12,383 29% Twice a month 3,591 24 86,188
5 12,383 12% Thrice a month 1,486 36 53,496
12,383 5% Four times a 48 29,720
month 619
TOTAL 10,65 120
0 228,845
 Table 6 shows the annual effective demand in terms of

frequency, which is calculated by multiplying the total

effective demand by the customers' purchase frequency.

Supply Forecast

The researchers were able to forecast supply using data

collected through interviews with the business' competitors.

The table below illustrates the competitors' daily supply

schedules.

Table 7. Supply Schedule

Supply Analysis
Competitor Daily
1 185
2 92
3 231
4 62
5 108
6 262
7 139
8 77
9 246
10 138
Total 1,540

Supply Per Day

Year 1 1540
Year 2 1627
Year 3 1720
Year 4 1818
Year 5 1921
 Table 8. Total Annual Supply Frequency
Operation Numbe Annual
Yea al % of frequency of r of Operation
r Capacity consumption/purchase times al
per day a Capacity
year by
Frequency
1,540 37 Once a month 12
% 570 6,838
1 1,540 24 Twice a month 24
% 370 8,870
1,540 13 Thrice a month 36
% 200 7,207
1,540 8% Four times a 48
month 123 5,914
TOTAL 1,26 120
3 28,829
1,627 37 Once a month 602 12 7,226
%
2 1,627 24 Twice a month 391 24 9,374
%
1,627 13 Thrice a month 212 36 7,617
%
1,627 8% Four times a 130 48 6,249
month
TOTAL 1,33 120 30,446
5
1,720 37 Once a month 636 12 7,636
%
3 1,720 24 Twice a month 413 24 9,907
%
1,720 13 Thrice a month 224 36 8,049
%
1,720 8% Four times a 138 48 6,604
month
TOTAL 1,41 120 32,197
0
1,818 37 Once a month 673 12 8,070
%
4 1,818 24 Twice a month 436 24 10,469
%
1,818 13 Thrice a month 236 36 8,506
%
1,818 8% Four times a 145 48 6,980
month
TOTAL 1,49 120 34,026
 0
1,921 37 Once a month 711 12 8,529
%
5 1,921 24 Twice a month 461 24 11,064
%
1,921 13 Thrice a month 250 36 8,990
%
1,921 8% Four times a 154 48 7,376
month
TOTAL 1,57 120
5 35,958

Table 9. Demand-Supply Analysis

Demand and Supply Analysis
Year Demand per year Supply per D/S Gap
year
1 214,092 28,829 185,263
2 217,688 30,466 187,222
3 221,346 32,197 189,149
4 225,064 34,026 191,039
5 228,845 35,958 192,887

Table 10. Presentation of Market Share

Supply per Capacity

Market
Year year Utilized per
Share
(Frequency) year
2022 28,829 29,568 0.51
2023 30,466 31,933 0.51
2024 32,197 34,151 0.51
2025 34,026 36,369 0.52
2026 35,958 38,586 0.52

Table 11. Presentation of Utilize Capacity

Year Maximum % of Utilized
Capacity per Utilized capacity
week* capacity per week
1 2400 0.67 1600
2 2400 0.72 1728
3 2400 0.77 1848
4 2400 0.82 1968
5 2400 0.87 2088
 II. Technical Aspect

This aspect includes the plant’s location, machinery

and equipment used, as well as their costs, and also the

comprehensive manufacturing process of the product.

Legal Requirements

Business Registration is the process of obtaining legal

authorization to conduct business within the chosen

jurisdiction. It is legal obligation of most jurisdictions

and ensures that a business is operating under the lawful

obligation of its control. It is important to submit a range

of documentation including certifications and professional

references, as well as detailed outline of the structure of

the business. The importance of business registration is

that it establishes the business as a legal entity. It

cannot be legally considered and will not be protected under

any grievance procedure if it does not have a business

registration. As a response, HealTEA will be registered with

several government agencies/officials, as shown in the table

below.

Table 12. Government Agencies/Officials

Name of Government Description

Agencies/Officials

Securities of Exchange HealTEA will register their

Commission (SEC) business name with the SEC in

order to obtain a Certificate

of Business Name Registration

for a partnership.

Barangay Clearance It is a necessary document

that certifies that the

proposed business complies

with the barangay

requirements in the area

where it is located.

SSS, PhilHealth, PAG-IBIG These three government-owned

Registration and controlled organizations

offer a variety of benefits

to the future employees.

Mayor’s Permit It is a license issued by a

 mayor for a company for the

operation of its business

under its jurisdiction.

BIR Registration The registration process

involves obtaining and

registering a tax

identification number (TIN),

obtaining BIR-registered

official receipts and

invoices, registering the

business’s books of accounts,

and paying the applicable

fees.

Fire Safety Inspection It is issued by the Bureau of

Certificate Fire Protection serves as an

assurance that a certain

facility, structure or

building/occupancy has been

duly inspected and deemed

complying to the Fire Code of

the Philippines or RA 9514.

Sanitary Permit the official document from

the Department of Public

Health and Social Services

 granting permission for the

facility to operate.

Production Process

The fruits will be dried with the use of a food

dehydrator. A food dehydrator features an electric heating

element as well as a fan and vents to circulate the air.

Dehydrators are specially designed to quickly dry food. A

16-layered food dehydrator will be used by the business's

proponents.

The first step in the process is to choose the right

fruits to be dried. When choosing apples, look for a color

that indicates freshness and firmness. Lemons and oranges

should have a pleasing aroma and should be heavy for their

size. After the fruits have been selected, properly wash

them and then dry them because working with dry fruit is

much easier. Using a manual fruit slicer, slice the fruits

into rings. Using a fruit slicer will ensure that the fruits

are cut thinly and uniformly. Furthermore, sliced fruits dry

significantly faster than whole fruits.

On dehydrator racks, arrange fruit slices in a single

layer. While the edges of the fruits may touch, be sure they

do not overlap, as this may cause the pieces to stick

together and the overlapping parts to be less dehydrated

than the remainder of the fruit. Keep different fruits on

different trays because each one takes a different length of

time to properly dehydrate. Fruits that are more inclined to

spill is placed on the bottom rack to avoid dripping onto

other fruits below. Follow the time and temperature

guidelines provided by the dehydrator manufacturer. Lift

each piece gently with a spatula and turn after the fruit

has dried for one to two hours. The amount of time it takes

for the fruit to dry varies based on the type of fruit.

Dehydrating lemon, orange and apple slices takes 6 hours.

Figure 3. Production Process

 Purchasing of raw materials

Fruit should be washed and dried.

Slice the fruits

Arrange the fruit slices on the dehydrator racks

Follow the dehydrator manufacturer's time and

temperature guidelines

After one to two hours of drying, turn each slice

Allow dehydrating for 6 hours

Wait until it's completely dry

Production Flow

1. Purchasing of Supplies. When it comes to obtaining raw

materials, the fruits that will be dried will be

obtained from Cabanatuan City's public market. In

addition, the kraft stand up pouch shall be purchased

from Maxi Mart.

2. Storage. The fruit will be stored in the crisper

compartment of the refrigerator to preserve its

freshness.
3. Preparation and Fruit Dehydration Process. The fruits

must first be washed and dried before being sliced into

rings. After it has been sliced, it will be placed in

the food dehydrator to dry.

4. Quality Assurance. Before packing the dried fruit, the

general manager will examine its quality.

5. Delivery. The dried fruit will be delivered to the

selected resellers in Jaen, Nueva Ecija.

Figure 4. Production Flow

Purchasing of Supplies

Storage

Preparation and Fruit Dehydration Process

Quality Assurance

Delivery
 Table 13. Machineries and Equipment

Description Item Quantity Unit Total

Cost Cost

Food

Dehydrator 3 9,850 29,550

Fruit Slicer

2 2,796 5,592

Refrigerator

1 6,990 6,990

Total 42,132

Table 14. Tools and Utensils

Description Item Quantity Unit Total

Cost Cost

Food Storage

3 140 420
Stainless Tray

3 85 255

Kitchen Tongs

2 50 100

Strainer

2 270 540

Grams Weighing

Scale 2 125 250

Kitchen Knives

2 68 136

Chopping Board

2 78 156

Total 2,057
 Table 15. Furniture and Fixtures

Description Item Quantity Unit Total

Cost Cost

Office Chair

1 199 199

Office Table

1 930 930

Chair

4 220 880

Table

2 630 1,260

Air

Conditioner 1 8,000 8,000

Clock

1 120 120

Total 11,389

Table 16. Office Equipment

 Description Item Quantity Unit Total

Cost Cost

Printer

1 5,000 5,000

Printer Ink

2 680 1,360

Computer Set 1 10,000 10,000

Bond Paper

1 150 150

Sticker Paper

73 68 4,964

Calculator

1 300 300

Receipt

5 15 75
Carbon Paper

2 50 100

Ballpen

2 40 80

Fire

Extinguisher 1 700 700

Dishwashing

Liquid 2 91 182

Sponge

5 20 100

(5 pcs)

Floor Mop

1 225 225

Broom

1 100 100
Dustpan

1 50 50

Hand Wash

5 185 925

Trash Bag

2 64 128

(20 pcs)

Trash Can

2 75 150

Total 24,590

Table 17. Supplies

Description Item Quantity Unit Total

Cost Cost
 A. Fruits

Apple

1 crate 1,400 1,400

Lemon

1 crate 1,700 1,700

Orange

1 crate 1,400 1,400

B. Packaging

Stand Up Pouch

(9x14) 1 150 150

(100 pcs)

Total 4,510

Table 18. Service Vehicle

Description Item Quantity Unit Total

Cost Cost
Service

Vehicle 1 60,000 60,000

Total 60,000

Table 19. Electricity and Water Bill

Description Monthly Annually

Electricity Bill 2,000 24,000

Water Bill 500 6,000

Total 30,000

Cleaning and Waste Disposal Method

Waste will be segregated into biodegradable and

nonbiodegradable to be picked up by local waste management

representative of Jaen, Nueva Ecija. Plastic and other

recyclable products shall have their own container. The care

for the environment will be implemented, since the packaging

of the product was made of papers. Furthermore, to ensure a

food-safe working environment, all other tools and equipment

utilized in the procedures are cleaned.

Utilities

The proposed business will be supplied with electricity

by Nueva Ecija I Electric Cooperative, Inc (NEECO I), and

water by the Jaen City Water District

Plant Location

The plant location of HEALTEA will be located near the

barangay hall in Ocampo Rivera, Jaen, Nueva Ecija, where it

will be able to reach all of the target markets, stores, and

shops of the product retailers. The exact location of

HEALTEA's plant is shown in Figure 2.

Figure 4. Plant location

Plant Layout

The plant location of HEALTEA is situated in Ocampo

Rivera, Jaen, Nueva Ecija, where one of the business

partners lives. The plant layout for the proposed business

has three sections which were designed to complement the

flow of the operations. The first section is the kitchen

area, the place where raw materials are prepared and where

fruits are dehydrated. The second section is the packing

area, which is where the dried fruits are packed and ready

to be sold, and distributed to retailers. The third section

is the general manager's office, which serves as a place for

administrative and management tasks. The overall land area

of the plant layout is 16 square meters.

Figure 5. Plant Layout

PACKING AREA

OFFICE

KITCHEN AREA

Figure 6. Vicinity Map

Figure 7. Front View

 Figure 8. Interior

Product Costing

Table 19

LEMON

Cost
Direct Materials 4.88

Direct Labor 4.55

Factory Overhead 0.45

Total Cost 9.89

Markup 253.97%

Selling Price 25.11

Table 20

ORANGE

Cost

Direct Materials 10.35

Direct Labor 4.31

Factory Overhead 0.43

Total Cost 15.09

Markup 198.13%

Selling Price 29.91

Table 21

APPLE

Cost

Direct Materials 6.36

 Direct Labor 4.02

Factory Overhead 0.40

Total Cost 10.77

Markup 224.83%

Selling Price 24.23

III. Management Aspect

This aspect describes the type of business

organization, the type of organization, the structure of the

organization, the number of personnel required, their

qualifications and compensation, and the company rules and

policies.

Form of Ownership

HealTEA: Organic Dried Fruit-based Tea Products is a

general partnership type of ownership. The proponents agreed

to share capital and even their knowledge of how profits and

losses should be distributed based on their initial

investments. The owners and managers of the company are the

proponents themselves. All partners are personally liable

for the partnership's obligations and debts. This type of

organization is chosen because it is simple to form, create

dynamics, and establish teamwork with a simple agreement of

the partners.

According to Barry E. Haimo, Esq.(2021), a business in

a partnership form has its advantages. A general partnership

allows all business partners to directly pass through

profits and losses to their personal income taxes. As a

result, the partnership's income is taxed at their personal

income tax rates rather than as a separate business entity.

This is ideal for small businesses where immediate cash flow

and profits can be difficult to achieve. Another advantage

of partnership is it allows you to negotiate the terms of

profit and loss allocation, management operations, and

interest transfers. This means you have control over who

works on which aspects of the business and can establish

mutually beneficial structures, salaries, and payments,

among other things. The partnership form of business is less

expensive, simpler, more personal, and informal than the

corporation form of business. A partnership, on the other

hand, also has its disadvantages. As a general partnership,

all partners are jointly and severally liable for all

business debts and any legal issues that arise.

Organizational Chart
 Production
Manager

Production Delivery
Staff staff

Figure 9. Organizational Chart

Table 22. Number of Personnel Required

Production Manager 1

Production Staff 2

Delivery staff 1

Table 23. Job Analysis

 Position Job Description Job Specification

1. Production  Monitors the  Must be at

Manager performance of least 25 years

the workers in of age

the production  At least three

area. to five years

 In charge of of work

the inspection experience in

of outputs managing

 Determines the business

quality control  Must be a

standard of the degree holder

products of any business

 Plans and course

organize the  Must possess

production good character,

schedules leadership, and

 Selects, order management

and purchase skills.

materials  Must have good

needed in the communication

production skills

process.
  In charge of

quality

control,

inspection and

maintenance of

machineries and

equipment.

2. Production  Has  Must be at

Staff responsibility least 18-25

for the years of age

maintenance and  A college level

operation of or a high

machinery. school graduate

 They make  Must be a

certain that responsible and

the production hardworking

standards are  Must have a

met. good moral

 They are in character

charge of both

the

manufacturing

and the

packaging of
 the product.

 They finalize

products and

prepare them

for shipment.

3. Delivery  They are  Must be at

staff responsible for least 19 years

carrying the of age

products  Male

carefully in  Physically fit

delivering to  Must possess

the consumer good character

 Reviews the and trustworthy

deliveries to

ensure that the

products meet

the needs of

the customers

 Obtain delivery

confirmations

from each

customer
General Company Policies

1. Hours of Work/Work Schedule

As a good employee, one must practice to respect other

people’s time and to be always punctual. The regular working

days of the business are from Monday to Friday 8:00 a.m. to

5:00 pm.

2. Employees’ attendance/ Time record

During business hours, all staff/employees are required to

personally log in and out of the daily time record in a

central log book or notebook. The daily time record includes

information such as the time staff/employees arrive and

leave the office/company premises, as well as the signature

of the staff/employee for authentication purposes. For

payroll purposes, proper monitoring of the daily time record

is critical.

3. Meal Period

Employees and staff take an hour lunch from 12:00 NN to 1:00

PM and return to work at 1:00 PM.

4. Overtime Pay

Overtime pay is given to employees/staff who work

beyond the operating or working hours. Additional

compensation is provided in the form of a payment or a

benefit in exchange for exceeding the number of hours

worked. When employees work more than 8 hours on a regular

working day, they are entitled to a 25% rate of overtime

pay, and a 30% rate on a rest day, special or regular

holiday, or if they work more than 8 hours on a rest day or

special or regular holiday.

Compensation Schemes

Employees' salaries must be computed on a monthly

basis and paid in portion at least twice a month. The first

portion, which consists of one-half of the computed basic

pay, shall be paid by the 15th of each month, while the

second portion shall be paid by the 30th of each month. The

production staffs and delivery staff shall be paid at a rate

of PHP 400 per day.

Table 24
 PERSONNEL PLAN Daily Annual 13th Total

Wage Basic month pay Annual

Rate Salary Salary

Production 500 120,000.00 10,000.00 130,000.00

Manager

Production Staff 400 96,000.00 8,000.00 104,000.00

(1)

Production Staff 400 96,000.00 8,000.00 104,000.00

(2)

Delivery Staff 200 9,600.00 800.00 10,400.00

Total Payroll 348,400.00

for 2022

Table 25

MONTHLY PAYROLL Total Annual Monthly Basic Pay

SCHEDULE Salary

Production Manager 120,000.00 10,000.00

Production Staff (1) 96,000.00 8,000.00

Production Staff (2) 96,000.00 8,000.00

Delivery Staff 9,600.00 800.00

Total Monthly Payroll 26,800.00

Table 26
Schedule of Monthly SSS Monthly Monthly Monthly

Employer’s contributio PAG- IBIG PhilHealth benefit

Share of n per contributio contributio

Employee employee n per n per

Benefits employee employee

Production 860.00 100 400.00 1,360.00

Manager

Production 690.00 100 320.00 1,110.00

Staff (1)

Production 690.00 100 320.00 1,110.00

Staff (2)

Delivery 265.00 100 32.00 397.00

Staff (3)

Total 3,977.00

Contributio

n
 Figure 10. Business Registration Process

Start Register Business and the Business Name in SEC

Pass All Requirements and Forms to SEC

No
Completed?
Complete Necessary
Ye Information and/or
s Requirements
Accomplish Application of Partnership

Complete Necessary
No
Information and/or
Done
Requirements

BIR Application for Registration and Authority to Print Receipts and Invoices

Get Barangay Clearance

Application of Business permit at Municipality

Get Bureau of Fire Protection Certificate

Get Sanitary Permit and Health Certificate

End
Business Registered

The process of obtaining legal authorization to conduct

business in the chosen jurisdiction is known as business

registration. It is a legal requirement in most

jurisdictions and ensures that a business is operating

within the legal boundaries of its control. It is critical

to submit a variety of documentation, including

certifications and professional references, as well as a

detailed outline of the business's structure. Furthermore,

the company must present a proposed business name that

complies with the legal requirements as determined by the

registrar. Business registration is essential because it

establishes the company as a legal entity. It cannot be

legally considered and will not be protected under any

grievance procedure unless it is registered as a business.

Company Rules

 After using a machine, the production staff is required

to turn it off.

 To avoid accidents, adhere to all safety precautions.

 Observe cleanliness in the working area.

Call on Duty

It is mandatory to work overtime if necessary.

IV. Financial Aspect

Financial aspect evaluates a proposed venture's

economic viability by analyzing startup costs, operational

expenses, cash flow, and forecasting future performance.

 It includes a five-year forecast of business operations

as well as a financial analysis that will be utilized by the

proponents of the study to analyze the proposed business's

profitability and viability.

Table 27. Projected Time Table

Activities to be Oct Nov Dec Jan Feb Mar

implemented
Conceptualization of the
Feasibility Study
Data Gathering
Project Feasibility Study
Sourcing and Allocation
of Funds
Securing of Permits and
Licenses
Purchase of Equipment
Hiring of Staffs
Advertising and Promotion
Actual Operation

Financial Assumptions

1. All sales are cash sales.

2. All purchases are cash purchases.

3. The property and equipment were depreciated using the

straight-line method, with a useful life of 5 years and

a salvage value of 10%.

 4. The percentage increase in selling price is 4%.

5. Operating expense increase 4% annually.

6. Cash withdrawal of the partners is 50% of net income.

7. There is no cash withdrawal during the first year of

operation.

8. The annual allowance for spoilage is one percent of

annual sales.

9. Fees for BIR permits and licenses will be paid before

the start of business operations.

Sources of Capital

The initial capital will be provided by the partners'

investment capital. The capital will be used to purchase

machinery and equipment, furniture and fixtures, tools and

utensils, supplies, and other business-related expenses. The

proposed business will require a P199,398.35 investment.

Schedule 1

TOTAL PROJECT COST

Acquisition of Property and Equipment
Manufacturing Equipment 42,132.00
Furniture and Fixtures 10,140.00
Tools and Utensils 1,857.00
Office Equipment 17,429.00
Total Acquired Property and 71,558.00
Equipment
 Working Capital Needed 117,840.35
Unrestricted Cash 10,000.00
Total Project Cost 199,398.35

The total project cost for the dried fruit tea business

is shown in Schedule 1 above.

Schedule 2. Working Capital

Working Capital Needed - 2 months

Cost of Goods Sold 105,161.66
Salaries Expense 1,733.33
Taxes and Licenses 2,650.00
Advertising Expense 166.67
Utilities Expense 5,400.00
Supplies Expense 1,296.83
Miscellaneous Expense 128.83
Allowance for spoilage 1,303.02
Total Working Capital 117,840.35
Needed

The working capital required for two months is shown in

Schedule 2. It consists of COGS, salary expenses, taxes and

licenses, allowance for spoilage, and other business

expenses.
 Schedule 3. Sales from dried fruit tea flavors

Flavors 1 2 3 4 5
/Year
Lemon 262,472.06 294,808.62 327,892.70 363,151.81 400,707.02
Orange 296,122.86 332,605.20 369,930.89 409,710.48 452,080.53
Apple 223,217.03 250,717.36 278,853.42 308,839.22 340,777.71
Total 781,811.95 878,131.18 976,677.02 1,081,701.50 1,193,565.27

Schedule 3 above shows the breakdown of annual sales

for each flavor of dried fruit tea.

Schedule 4

Utilities Expenses
  Monthly Annually
Electricity 2,000.00 24,000.00
Water 500.00 6,000.00
Fuel 200.00 2,400.00
Total 2,700.00 32,400.00

Schedule 4 breaks down the monthly and annual utility

expenses, which include electricity, water, and fuel.

Schedule 5

Advertising Expense
  Annually

Flyers 1,000.00

Total 1,000.00
 Schedule 5 shows the cost of advertising the business.

Schedule 6

Taxes and Licenses Expenses

Mayor's Permit 1,000.00
SEC 1,000.00
Barangay Permit 150.00
Other Licenses 500.00
Total 2,650.00

The permits and licenses that the business has to pay

is shown in Schedule 6 above.

Schedule 7

Supplies Expense
Name of Assets Quantity Unit Cost Total Cost
Printer Ink 2 680.00 1,360.00
Bond Paper 1 150.00 150.00
Sticker Paper 73 68.00 4,964.00
Calculator 1 300.00 300.00
Receipt 5 15.00 75.00
Carbon Paper 2 50.00 100.00
Ballpen 5 10.00 50.00
Dishwashing 2 91.00 182.00
Liquid
Sponge 5 20.00 100.00
 Hand Wash 5 100.00 500.00
Total 7,781.00

Schedule 7 is the supplies expense of the dried fruit

tea business.

Schedule 8

Miscellaneous Expense
Name of Quantity Unit Cost Total Cost
Assets
Clock 1 120.00 120.00
Trash Can 2 75.00 150.00
Trash Bag 2 64.00 128.00
Floor Mop 1 225.00 225.00
Broom 1 100.00 100.00
Dustpan 1 50.00 50.00
Total 773.00

The miscellaneous expense of the business is shown in

Schedule 8.

Schedule 9. Schedule of Operating Expense

Account Name Year 1 Year 2 Year 3 Year 4 Year 5

Depreciation 10,362.42 10,362.4 10,362.42 10,362.4 10,362.42
Expense 2 2
Salaries Expense 10,400.00 10,816.0 11,248.64 11,698.5 12,166.53
0 9
Taxes and 2,650.00 2,650.00 2,650.00 2,650.00 2,650.00
Licenses
Supplies Expenses 7,781.00 8,092.24 8,415.93 8,752.57 9,102.67
Utilities Expense 32,400.00 33,696.0 35,043.84 36,445.5 37,903.42
0 9
Allowance for 7,818.12 8,781.31 9,766.77 10,817.0 11,935.65
Spoilage 2
Advertising 1,000.00 1,040.00 1,081.60 1,124.86 1,169.86
Expense
Miscellaneous 773.00 803.92 836.08 869.52 904.30
Expense
Total Operating 73,184.54 76,241.8 79,405.28 82,720.5 86,194.85
Expenses 9 6

The Schedule 9 above is the annual total operating

expense of the business.

Schedule 10. Schedule of Cost of Goods Sold

Year 1 Year 2 Year 3 Year 4 Year 5

Total RMU 212,091.9 238,221.68 264,955.4 293,446.76 323,793.45
5 5
Add: Direct 380,960.0 396,509.20 411,599.1 428,292.33 445,592.03
Labor 0 7
Add: 37,918.02 39,118.02 40,366.02 41,663.94 43,013.78
Factory
Overhead
Total Cost 630,969.9 673,848.90 716,920.6 763,403.03 812,399.25
of Goods 7 3
Sold
 Schedule 10 shows the total cost of goods sold of the

dried fruit tea business per year.

 Schedule 11

Depreciation - Machineries and Equipment

Unit Qty Total Salvage Depreciable Useful Annual
Cost Cost Value Cost Life Depreciation
Fruit 9,850.00 3 29,550.00 2,955.00 26,595.00 5 5,319.00
Dehydrator
Fruit Slicer 2,796.00 2 5,592.00 559.20 5,032.80 5 1,006.56
Refrigerator 6,990.00 1 6,990.00 699.00 6,291.00 5 1,258.20
Total     42,132.00       7,583.76

Schedule 12

Depreciation - Furniture and Fixtures

  Unit Qty Total Cost Salvage Depreciable Useful Annual
Cost Value Cost Life Depreciation
Chair 220.00 4 880.00 88.00 792.00 5 158.40
Table 630.00 2 1,260.00 126.00 1,134.00 5 226.80
Air 8000.00 1 8,000.00 800.00 7,200.00 5 1,440.00
Conditioner
Total     10,140.00       1,825.20
 Schedule 13

Depreciation - Office Equipment

Unit Cost Qty Total Cost Salvage Depreciable Useful Annual
Value Cost Life Depreciation
Fire 700 1 700.00 70.00 630.00 5 126.00
Extinguisher
Office Chair 799.00 1 799.00 79.90 719.10 5 143.82
Office Table 930.00 1 930.00 93.00 837.00 5 167.40
Computer Set 10,000.00 1 10,000.00 1,000.00 9,000.00 5 1,800.00
Printer 5,000.00 1 5,000.00 500.00 4,500.00 5 900.00
Total 17,429.00 3,137.22

Schedule 14

Depreciation - Tools and Utensils

  Unit Cost Qty Total Cost Salvage Depreciable Useful Annual
Value Cost Life Depreciation
Food Storage 140.00 3 420.00 42.00 378.00 5 75.60
Stainless 85.00 3 255.00 25.50 229.50 5 45.90
Tray
Kitchen Tongs 50.00 2 100.00 10.00 90.00 5 18.00
Strainer 270.00 2 540.00 54.00 486.00 5 97.20
Grams 125.00 2 250.00 25.00 225.00 5 45.00
Weighing
Scale
Kitchen 68.00 2 136.00 13.60 122.40 5 24.48
Knives
Chopping 78.00 2 156.00 15.60 140.40 5 28.08
Board
Total     1,857.00       334.26

Schedule 15

Depreciation - Service vehicle

Unit Cost Qty Total Cost Salvage Depreciable Useful Annual
Value Cost Life Depreciation
Service 60,000.00 1 60,000.00 6,000.00 27,000.00 10.00 5,400.00

Vehicle

Total     60,000.00       5,400.00

 Machineries and Equipment, Furniture and Fixtures, Office Equipment, Tools and

Utensils, and Service Vehicle depreciation schedules are broken down in Schedules 11, 12,

13, 14, and 15 for the next five year.

Schedule 16

Income Statement
1st Year 2nd Year 3rd Year 4th Year 5th Year
Sales 781,811.95 878,131.18 976,677.02 1,081,701.50 1,193,565.27
Less: Cost of Goods 630,969.97 673,848.90 716,920.63 763,403.03 812,399.25
Sold
Gross Profit 150,841.98 204,282.28 259,756.38 318,298.47 381,166.02

Less: Operating
Expenses
Depreciation Expense 10,362.42 10,362.42 10,362.42 10,362.42 10,362.42
Salaries Expense 10,400.00 10,816.00 11,248.64 11,698.59 12,166.53
Taxes and Licenses 2,650.00 2,650.00 2,650.00 2,650.00 2,650.00
Supplies Expenses 7,781.00 8,092.24 8,415.93 8,752.57 9,102.67
Utilities Expense 32,400.00 33,696.00 35,043.84 36,445.59 37,903.42
Allowance for 7,818.12 8,781.31 9,766.77 10,817.02 11,935.65
Spoilage
Advertising Expense 1,000.00 1,040.00 1,081.60 1,124.86 1,169.86
Miscellaneous Expense 773.00 803.92 836.08 869.52 904.30
Total Operating 73,184.54 76,241.89 79,405.28 82,720.56 86,194.85
Expenses
Net Income before Tax 77,657.44 128,040.39 180,351.10 235,577.91 294,971.17
Income Tax Due - - - - -
Net Income after Tax 77,657.44 128,040.39 180,351.10 235,577.91 294,971.17

Schedule 18 shows the business' income statement for the first five years of

operation.
 Schedule 17

Statement of Changes in Owner's Equity

  1st Year 2nd Year 3rd Year 4th Year 5th Year
Beginning Capital - 277,055.79 341,075.98 431,251.54 549,040.49
Add: Initial 199,398.35 - - - -
Investment
Profit/(Loss) 77,657.44 128,040.39 180,351.10 235,577.91 294,971.17
Sub - Total 277,055.79 405,096.18 521,427.09 666,829.44 844,011.66
Less: Withdrawal - 64,020.20 90,175.55 117,788.95 147,485.58
Ending Capital 277,055.79 341,075.98 431,251.54 549,040.49 696,526.07

The statement of changes in equity of the business for the five years of operation is

shown in Schedule 17.

 Schedule 18

Statement of Cash Flows

1st Year 2nd Year 3rd Year 4th Year 5th Year
OPERATING ACTIVITIES
Cash Receipts
Sales 781,811.95 878,131.18 976,677.02 1,081,701.5 1,193,565.2
0 7
Cash Disbursements
Cost of Goods Sold 623,051.95 665,930.88 709,002.61 755,485.01 804,481.23
Salaries Expense 10,400.00 10,816.00 11,248.64 11,698.59 12,166.53
Taxes and Licenses 2,650.00 2,650.00 2,650.00 2,650.00 2,650.00
Supplies Expenses 7,781.00 8,092.24 8,415.93 8,752.57 9,102.67
Utilities Expense 32,400.00 33,696.00 35,043.84 36,445.59 37,903.42
Allowance for 7,818.12 8,781.31 9,766.77 10,817.02 11,935.65
Spoilage
Advertising Expense 1,000.00 1,040.00 1,081.60 1,124.86 1,169.86
Miscellaneous Expense 773.00 803.92 836.08 869.52 904.30
Income Tax Due - - - - -
Total Cash 685,874.07 731,810.35 778,045.47 827,843.16 880,313.66
Disbursements
Cashflow generated 95,937.88 146,320.83 198,631.54 253,858.35 313,251.61
from Operating
Activities

INVESTING ACTIVITIES
Acquisition of -131,558.00 - - - -
Property and
Equipment
Cashflow -131,558.00 - - - -
generated/used from
Investing Activities

FINANCING ACTIVITIES
Initial Investment 199,398.35 - - - -
Withdrawal -64,020.20 -90,175.55 -117,788.95 -147,485.58
Cashflow 199,398.35 -64,020.20 -90,175.55 -117,788.95 -147,485.58
generated/used from
Financing Activities
Net Cash from all 163,778.23 82,300.64 108,455.99 136,069.39 165,766.02
Activities
Add: Cash Beginning - 163,778.23 246,078.86 354,534.86 490,604.25
Cash Ending 163,778.23 246,078.86 354,534.86 490,604.25 656,370.27

In Schedule 18 above, it shows the statement of cash flows of the business for the

five years of operation.

Schedule 19

Statement of Financial Position

1st Year 2nd Year 3rd Year 4th Year 5th Year
ASSETS
Cash 163,778.23 246,078.86 354,534.86 490,604.25 656,370.27

Property and 113,277.56 94,997.12 76,716.68 58,436.24 40,155.80

Equipment - net
Total Assets 277,055.79 341,075.98 431,251.54 549,040.49 696,526.07
 LIABILITIES & CAPITAL
Liabilities - - - - -

Capital 277,055.79 341,075.98 431,251.54 549,040.49 696,526.07

Total Liabilities and 277,055.79 341,075.98 431,251.54 549,040.49 696,526.07
Capital

Schedule 19 shows the statement of financial position of the business for the first

five years of operation.

 Schedule 20

Net Present Value (4%)

Period Cashflow PVF DCF
1st Year 95,937.88 0.9615 92,247.96
2nd Year 146,320.83 0.9615 140,693.11
3rd Year 198,631.54 0.9615 190,991.87
4th Year 253,858.35 0.9615 244,094.56
5th Year 313,251.61 0.9615 301,203.47
Total Discounted Cashflow 969,230.97
Project Cost 199,398.35
Net Present Value 769,832.62

Schedule 20 shows the Net Present Value (NPV) of the

business.

Schedule 21

Payback Period
Yea Cashflow Cumulative Payback Period
r Cashflow
0 -199,398.35 -199,398.35 -
1 95,937.88 -103,460.47 1.71
2 146,320.83 42,860.36 -
3 198,631.54 241,491.91 -
4 253,858.35 495,350.25 -
5 313,251.61 808,601.86 -
Total Payback Period 1.71
 The payback period of the business in which the investment would be recovered is

shown in Schedule 21.

Schedule 22

Return on Investment

1st Year 2nd Year 3rd Year 4th Year 5th Year Average

Net Income 77,657.44 128,040.39 180,351.10 235,577.91 294,971.17 183,319.60

Project Cost 199,398.35 199,398.35 199,398.35 199,398.35 199,398.35 199,398.35

Return on 38.95% 64.21% 90.45% 118.14% 147.93% 91.94%

Investment

Schedule 22 shows the business’ return on investments, which is expressed as a

percentage of the investment’s return per year.

 CHAPTER V

SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS

This chapter summarizes the findings of the study, the

conclusions reached, and the recommendations made by the

researchers.

Summary

The purpose of this study, "A Feasibility Study of

Establishing the Brand HealTEA: Organic Dried Fruit-Based

Tea Products," is to assess and evaluate the feasibility of

establishing a shop that sells dried fruit tea products in

Jaen, Nueva Ecija, based on its profitability and viability.

It specifically answered the following questions:

1. How may the project be described in terms of:

1.1 marketing aspect;

1.2 technical aspect;

1.3 management aspect; and

1.4 financial aspect of a business?

2. What socio-economic benefits could this proposed

business provide?
 The researchers came up with the idea of establishing

this type of tea shop to provide people with a more

enjoyable way to drink tea that is all-natural, organic, and

free of preservatives while remaining as healthy as regular

teas.

The descriptive research method was used by the

researchers to conduct the study. The information was

gathered using a survey, interviews, library, and the

internet.

Findings of the Study

This section presents and discusses the analysis and

interpretation of four business aspects: marketing,

technical, financial, and management.

Marketing Aspect

The proposed study offers organic dried fruit tea

products that will be distributed through a channel of

distribution in Jaen, Nueva Ecija, and will also be

available for purchase online.

Residents of Jaen, Nueva Ecija, aged 12 and above, are

the target market for HealTEA. Proponents of the study

intend to offer a variety of flavors that are both delicious

and healthy. Flavors include apple, orange, lemon,

pineapple, and dragon fruit. Customers will be charged a

reasonable price for the product. As to the distribution

channels, it will enable the business to serve a greater

number of customers.

Because marketing is so important to a business’

success, it is essential to develop and implement various

marketing strategies.

Technical Aspect

The proposed business' plant is located in Ocampo

Rivera, Jaen, Nueva Ecija, where one of the partners lives.

It is close to the city, allowing it to reach all of the

target markets and product retailers. The plant layout is

divided into three areas, each of which was created to

complement the operations flow. The plant layout covers a

total of 16 square meters of land.

The proposed business will be registered with various

government agencies/officials and will require other legal

requirements in order to operate legally.

A list of machines, equipment, and supplies that the

business will use in its operations and production, along

with their costs, is also included. The utilities to be used

were power and water supply. Water will be provided by Jaen

City Water District, while power will be provided by Nueva

Ecija I Electric Cooperative, Inc. (NEECO I).

Waste items produced by the business are properly

disposed of. Plastic waste materials that are being used is

treated properly to prevent it from causing harm to the

environment.

Management Aspect

HealTEA: Dried Fruit Tea is owned by a General

Partnership. One of the primary benefits of forming a

partnership is that taxes are simplified; however, one of

the primary disadvantages of forming a partnership is that

the partners are legally personally liable for the

business's profits, losses, and debts.

The Organizational Chart begins with the General

Manager and progresses to the Bookkeeper, Production Staff,

and finally the Delivery Staff. Each person in the

organizational chart serves a specific purpose. Each

personnel also has a Job Description and Job Specification.

When it comes to General Company Policies, the company is

very strict. Each employee will be paid a salary that is

appropriate for their position. This also shows the

employees' regular holiday pay and special holiday pay. The

legal documents contain information that is necessary for

the business to operate properly. It is also required as

proof that the company is legal and authorized.

Socio-Economic Benefits

A business' primary goal is to maximize profits for

itself. Though earning profit is important for a business's

survival, it cannot be the sole reason for its existence. A

business still has responsibilities and a relationship with

the society in which it operates. The proposed project's

socio-economic contributions are listed below.

1. HealTEA will provide employment opportunities for the

people of Jaen.

2. HealTEA’s dried fruit tea will offer a variety of dried

fruit tea variants that caters to health-concerns of

people while using organic ingredients which is

particularly important today that the health is in risk

due to the Covid-19.

3. Through the purchase of the raw materials and other

supplies, the local market of Cabanatuan City will

increase its revenue.

4. It will serve as a guide for future entrepreneurs

interested in starting a similar business.

 5. The government of Jaen, will benefit from the

additional revenue generated by the taxes.

Conclusions

Based on the findings of the study, the following

conclusions were drawn by the researchers:

1. The proposed study is feasible because there is an

existing demand for the product. Due to the health risk

posed by Covid-19, foods and beverages with a variety

of health benefits are currently in high demand.

2. In the actual operation, the proponents will profit

from the sale of dried fruit tea while simultaneously

helping in the creation of employment opportunities and

the growth of the economy.

3. Since the products are all organic, HealTEA will also

help promote environmental friendliness. It can also

boost the immune system because it is an organic dried

fruit tea.

4. This feasibility study suggests that the business be

implemented in the coming years because it is feasible.

Every P’s in the marketing aspect and every detail in

every aspect contribute to a strong belief in the

viability of this business.

Recommendations

The following recommendations are made based on the

summary of the various aspects and conclusions:

1. Additional distribution channels will help in the

promotion of the product in order to reach a larger

market.

2. Online advertising is less expensive, which reduces the

cost of promotion, and it is more effective in reaching

larger markets.

3. In the future, opening a physical store may be

beneficial because it will be more visible to the

market. Customers can learn about new products on the

market by looking at the products on display.

4. Maintaining a strong relationship with customers builds

trust, which leads to customer loyalty, and the same is

true for suppliers.

5. Adding more fruit flavors to the proposed business's

menu in the future could draw more customers.

6. Additional employees may be needed to meet the

business's growing demand.

Bibliography
Appendices
Curriculum Vitae