FINANCIAL STUDY

Marketing and Production:

1. How did you determine the pricing strategy for “ULAMANG,” considering the different
variants and quantities?

Answer: The pricing strategy was established based on market research, considering the prevailing
prices of similar products and the cost structure, with a focus on maintaining competitiveness while
ensuring profitability.

2. Could you elaborate on the distribution strategy for “ULAMANG” in the targeted areas?

Answer: Our distribution strategy primarily focuses on households, local markets, grocery stores, and
restaurant partnerships in specific areas, ensuring convenient accessibility to our target consumers.

3. What were the key assumptions made regarding the production process and material
sourcing?

Answer: Assumptions included the procurement of bagoong alamang from a supplier in Iloilo City,
process time, daily production schedules, and prevailing market prices for materials and supplies.

Financial Assumptions and Investment:

1. How did you calculate repair and maintenance costs as a percentage of machinery cost and
replacement schedules?

Answer: The repair and maintenance cost estimation was based on a fixed percentage (3%) of the
machinery cost added to the replacement schedule amounts for effective machinery upkeep over time.

2. Could you elaborate on the breakdown of the initial investment requirements and its
significance?

Answer: The initial investment breakdown includes pre-operating expenses, fixed asset investments,
supplies, replacement schedules, and working capital. This delineation ensures a comprehensive
understanding of the financial needs during the setup and operation phases of the business.

Financial Projections and Sensitivity Analysis:

1. What were the key elements considered in projecting the financial performance of the
business over ten years?

Answer: Financial projections factored in sales revenue, operating expenses, inflation rates, production
volume variations, and the impact of price changes on net income and cash flows.

2. How did you conduct the sensitivity analysis, and what were the key findings from this
assessment?

Answer: The sensitivity analysis explored the impact of changes in product prices, inflation rates, and
production volume on net income. It highlighted the project’s resilience to variations in key variables
while maintaining a consistent payback period of 0.42 years across different scenarios.
Production and Operational Assumptions:

1. How did you determine the process time and production schedule for “ULAMANG”?

Answer: The process time to convert bagoong alamang into “ULAMANG” was estimated at a day,
allowing products to be available for purchase on the second day. The production schedule operates six
days a week, totaling 26 days in a month.

Financial Viability and Profitability:

1. Considering the inflationary factors and price changes, how did these affect the project’s
financial performance in your scenarios?

Answer: Despite assumed cost increases and changes in production volume, all scenarios showed
positive net income and cash flows throughout the 10-year period. This demonstrates the project's
resilience and financial viability under varying conditions.

Market Study

Question: What factors contribute to the absence of direct competitors in the local market?

Answer: The absence of direct competitors in the local market for processed bagoong alamang primarily
stems from a comprehensive analysis indicating untapped market demand. Despite the absence of
established competitors, extensive research has revealed significant consumer interest and a lack of
suppliers in the area, creating a favorable landscape for “ULAMANG” to establish a robust presence.

Question: How does the consistent supply from the Iloilo City supplier cater to the demand in
Hindang, Leyte?

Answer: The supplier from Iloilo City ensures a consistent and reliable weekly delivery of bagoong
alamang at a rate of ₱2,000.00 per 20kg. This supply effectively meets the demand of the target
population in Hindang, Leyte, covering areas like Poblacion 1, Poblacion 2, Tabok, Doos Del Norte, Doos
Del Sur, and Tagbibi.

Description of the Product and Services

Question: What aspects differentiate the two variants of “ULAMANG” and how were their prices
determined?

Answer: “ULAMANG” offers two variants: a regular flavor at ₱109.00 and a spicier option priced at
₱113.00, both providing a 150-gram serving. The differentiation lies in the inclusion of ground pork and
aromatic spices in the regular variant and the addition of chili for the spicier option. The prices were
determined considering the cost of production, respondent’s willingness to pay, and a desired return on
sales.
Target Market and Estimated Market Size

Question: How was the target market identified, and what methods were used for this identification?

Answer: The target market for “ULAMANG” in Hindang, Leyte was identified through a study
encompassing six specific barangays. The identification was based on a survey involving 150 respondents
representing 3,369 households, revealing preferences, buying behaviors, and market demand within the
specified areas.

Demand Study and Market Share Analysis

Question: Can you elaborate on the calculations used to determine the potential demand and market
share for “ULAMANG”?

Answer: The potential demand for “ULAMANG” was estimated using Philip Kotler’s demand estimation
formula, considering the number of buyers, the percentage willing to buy the product, and the average
quantity bought in grams. The market share was then derived from the potential demand, aiming to
capture 50% of the market based on the absence of local competitors.

Pricing Strategy

Question: What factors influenced the final pricing of “ULAMANG” and how were the costs
calculated?

Answer: The final pricing considered various elements, including direct material and labor costs per
production, respondent’s willingness to pay, and a desired return on sales. The unit cost calculations,
based on daily production and cost allocations for each variant, helped establish the mark-up prices of
₱109.00 for the plain variant and ₱113.00 for the spicier variant.

SWOT Analysis

Question: How does the SWOT analysis contribute to the understanding of “ULAMANG’s” market
potential?

Answer: The SWOT analysis identifies “ULAMANG’s” strengths, weaknesses, opportunities, and threats,
providing insights into its unique product offering, market challenges, and potential avenues for growth.
It aids in recognizing strengths such as uniqueness, potential upscale market penetration, while
acknowledging weaknesses like limited market awareness and dependence on shrimp supply, guiding
strategies for market entry and growth.
TECHNICAL STUDY

Regarding General Business Conditions:

Question: How do your proposed manufacturing guidelines ensure the safety and quality of the
product?

Answer: Our manufacturing guidelines emphasize stringent measures for raw material quality, hygiene
maintenance, employee health checks, proper handling of ingredients, and adherence to safety
standards to guarantee the product’s safety and quality.

On Production Process:

Question: Could you explain the critical steps in the production process and the equipment used to
ensure product consistency?

Answer: The key steps involve rinsing, cooking, cooling, bottling, labeling, and packaging. Specific
equipment like heat guns, labeling machines, and refrigerators contribute to maintaining consistency
and quality throughout the process.

Quality Control Measures:

Question: How do you ensure the quality and safety of the “ULAMANG” product?

Answer: Our quality control focuses on sourcing high-quality ingredients, maintaining cleanliness during
fermentation, conducting taste and texture checks, appropriate packaging, proper storage, and
complying with food safety regulations.

Shelf Life and Storage:

Question: What strategies are in place to manage the product’s shelf life and storage?

Answer: We recommend storing unopened jars in cool, dry places and consuming the product within a
few months after opening. Refrigeration extends its shelf life and preserves quality.

Waste Management and Environmental Impact:

Question: How do you handle waste generated during production, and what environmental impact
considerations have been taken into account?

Answer: We have devised a waste management plan segregating organic and non-organic waste,
considering composting, proper disposal, and complying with local regulations to minimize
environmental impact.
Operational Plan and Expected Production:

Question: What are your strategies for daily production and operational efficiency?

Answer: We’ve devised a Gantt chart scheduling simultaneous tasks, ensuring daily production of 111
bottles, balancing both plain and spicy variants, meeting consumer preferences.

Shelf life

The estimated shelf life of ”ULAMANG,” a Filipino shrimp paste condiment, typically ranges between 1
to 2 years when the jars or bottles remain unopened and are stored in a cool, dry place. Once opened,
it’s advisable to refrigerate the product and consume it within a few months to maintain its quality and
safety.

MANAGEMENT STUDY

Business Concept and Strategy

How does ULAMANG plan to expand its market reach?

Answer: ULAMANG aims to expand through retailing, reselling, and franchising to other locations while
prioritizing the improvement of product quality and customer satisfaction. This multi-faceted approach
will increase revenues and enhance the brand’s visibility nationwide.

Organizational Structure and Staffing

Explain the roles and responsibilities outlined in the organizational structure. How do these positions
contribute to ULAMANG’s success?

Answer: The organizational chart reflects a hierarchical structure, with owners overseeing operations, a
product manager leading strategy, a bookkeeper managing finances, and specific roles handling
production, sales, and kitchen management. Each role is crucial in ensuring smooth operations and
achieving business goals.

Legal and Compliance

What legal requirements and permits does ULAMANG need to operate legally?

Answer: ULAMANG must secure Barangay Business Clearance, Mayor’s Business Permit, BIR registration,
DTI registration, Sanitary Permit, Cedula, and FDA approval, ensuring compliance with various
governmental and health regulations.
How does ULAMANG ensure fairness in its ‘no work, no pay’ policy regarding employee attendance?

Answer: ULAMANG implements a logging system to monitor active work hours, where salaries are
contingent on attendance. Persistent tardiness or unexplained absences may lead to consequences,
ensuring fairness and discipline in attendance.