Title: Feasibility study on the Production of Pomelo Candy

Chapter I (Introduction)
Brief Description
The market trend for natural and healthy food products is growing rapidly, and the
demand for fruit and vegetable snack is on the rise. Pomelo candy can cater to this
market segment and offer a unique and refreshing flavor experience. A pomelo is an
Asian fruit, it is mostly found in the southern part of Asia, it is a citrus fruit that
resembles a large pear of green tinted grapefruit and sometimes grows up the size of
cantaloupe. The production of Pomelo candy has the potential to tap into the growing
demand for healthy and natural food products, as well as create a new revenue stream
for the business.

The purpose of this feasibility study is to determine whether it is visible to produce

and market Pomelo candy. The study will assess the market demand for pomelo
candy, the production costs, and the potential profitability of the product.

Objectives
This study aims to give information about the production of Pomelo Candy.

Specifically, it aims to give the following information:

1.To knew the market potential and prospects of producing pomelo candy;
2.To identify the requirements in conducting the procedure of pomelo candy;
3.To determine the investment and production or serving costs of the production of
pomelo candy;
Chapter II
(Market potential and Prospects)
Production Services
The service presented in this study is peddling and online delivery service in which it
will be use to deliver the pomelo candy. The pomelo candy is consisting of different
flavors which includes plain pomelo candy, Lime, Pineapple and lemon. This enables
to provide more variety than our competitors while keeping our production precisely
and clean. The pomelo candy is taking advantage to immense popularly due to the
flavors and because other competitors don’t used this kind of method.
Market Segmentation
The costumer for our pomelo candy comprised of Four target groups. The children,
young adults, middle ages, and local business people, this groups are all potentially
strong costumer segments. The benefits of this mix of costumers is that it can help
maintain the consistency of the business throughout the year, this can provide of
consistent foundation all year long. By doing this we will not be dependent on any
single consumer group. This can be a great advantage for the performances for our
company.
SWOT Analysis
The table below shows the strengths, weaknesses opportunities, and threats that the
production of Pomelo candy have.
Table 1. SWOT Analysis
Strengths √Easy to produce/make
√Provides health benefits and
friendly ways to order
√Smell amount of
capital/cheap prices
Weaknesses √Competitor can offer similar
service
√May not satisfy consumer
wants
Opportunitie √Market expansion
s √Improve costumer service
Threats √Increasing Potential
competitors

Market Share and Sales

The online delivery service of the product is expected to reach an estimated 60%
market shares for a month. Also, it is expected to contribute at least 80% to the
market sales of the productions of the pomelo candy for a month.

10%

40%

30%
60%
60%

Market Shares Market Sales

60% - Online Selling Services 40% -

Reedling
30% - Pomelo Candy 60% -
Online Selling
10% - Other information
Chapter III
Technology Assessment and Operation Variability

Technology requirements to assist clients picture the products they are seeking for
and to make sales of those products easier, the customer can swiftly place their
purchase through Facebook’s online ordering platform.
Equipment and machineries needed
The thick insulated food delivery bag will be used to transport the Pomelo gummy
candies on the motorcycle to prevent spillage.
Chapter IV
Investment Requirements and Production/Servicing Costs
Source of Capitalization
The table below shows that sources of capitalization and the amount for the online
ordering and home delivery service.

Source of Capitalization Amount

Owner Php 13,500.00

Total Php 13,500.00

Table 3. Source of Capitalization

Pre-Operating Costs
The table below shows the pre-operating online ordering and home delivery service of
the gummy candy.
 PRE-OPERATING COST

Online Delivering System Php 3,000.00

Delivery Box Php 1,500.00

Fuel/Gasoline Php 1,000.00

Supplies Php 3,000.00

Start-up Inventory Php 2,000.00

Working Capital & Contingency Php 3,000. 00

Total Cost Php 13,500.00

Table 4. Pre-Operating Cost
Production/Service Facilities Investment
The table below shows the long-term investment for the production/service facilities
and the online ordering and home delivery service.

Long-Term Investment

Online Ordering System Php 3,000.00

Total Investment Php 3,000.00

Table 5. Long-term Investment
Working Capital Investment
The table below shows the working capital investment of the online and home
delivery service of the gummy candy as well as its current assets and liabilities.

Long-Term Investment

Account Payable Php 3,000.00

Total Liabilities Php 3,000.00

Working Capital Php 10,500.oo

Current Assets

Cash Php 10,500.00

 Account Receivable Php 3,000.00

Total Assets Php 13,500.00

Table 6. Working Capital Investment

CHAPTER V
Financial Forecast and Determination of Financial Feasibility
Initial Capital Requirement
The amount required from the owner, as shown in the Source of Capitalization
section on chapter IV is dependent upon the successful acquisition of funds from each
of the listed sources. The funds will be used to comply the projected capital budget
requirements as explained in the Financial Statement section. Adjustment to the
amount of funds needed may be necessary in the event of unforeseen circumstances.
Financial Statements
The table below indicates the financial statement of the online and home delivery
service of pomelo gummy candy as well as the sources of funds and its allocations.

Source of Funds Amount

Equity Contributions Php 13,500.00

Total: Php 13,500.00

Uses of Cash:

Online Ordering System Php 3,000.00

Delivery Box Php 1,500.00

Fuel/Gasoline Php 1,000.00

Supplies Php 3,000.00

Startup Inventory Php 2,000.00

Working Capital & Contingency Php 3,000.00

Total Uses of Cash Php 13,500.00

Table 7. Financial Statement

Return on Investment
The pomelo gummy candy estimated to earn Php 46,500.00 per month about Php
558,000.00 a year. The online ordering and home delivery service is expected to
contribute about 40% of the profit. The estimated net income for online ordering and
home delivery service for the pomelo gummy candy is Php 46,500.00 every month
and total investment of Php 13,500.00 for ordering and home delivery service.
ROI = 46,500.00
13,500.00
ROI = 3.4444
ROI= 34.44%
The return of investment for the online ordering and home delivery service is 3,44 or
34.44%.