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EXECUTIVE SUMMARY The feasibility study is all about the affordable Filipino native delicacy called kakanin. The researchers will convey on the production and serving of your favourite kakanin with different style and twists. This study covers on the product’s combination of excellent food at very a...

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EXECUTIVE SUMMARY The feasibility study is all about the affordable Filipino native delicacy called kakanin. The researchers will convey on the production and serving of your favourite kakanin with different style and twists. This study covers on the product’s combination of excellent food at very affordable price. The researcher, Angelica Aquino, Roi Angela Arcenal, Sherylyn Granado, Genesis Laca , Luz Cerinna Oczon, are 4th year Bachelor in Banking and Finance student of Polytechnic University of the Philippines will be the partners of the business. The name of the business is Fikakanin. It will offer different Filipino rice cakes that will surely click on the market. With the researcher conducted series of researches about the kakanin, we came up the idea of bringing it to a business and establish a snack bar that offers affordable yet delicious rice cake snacks. This business will market not just people who love kakanin. The business is located at Muralla St. Intramuros, Manila. The target market of the study are students, employees, residence and passerby surrounding the area.

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BUSINESS CONCEPT Fikakanin is a Filipino business enterprise that caters Filipino delicacy called “kakanin”. It is a snack bar besides the historic walls of Intramuros. It offers variety of kakanin like puto, kutchinta, biko and other varieties of rice cakes that are well known in the country. It is officially opened as a business to meet and satisfy the demand of kakanin. Kakanin is a common snack in the country. Filipinos have created many different kinds of rice cakes. In local language, it is called kakanin, derived from the word kanin, meaning prepared rice. The kakanin we will offer is somehow an innovation in the rice cake business. The business will also offer some products that is perfectly complements the food that we are offering. Beverages like coffee, chocolates and gulaman are also available in the said business.

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DESCRIPTION OF THE BUSINESS Kakanin is a native delicacy that is available in the country. Every province in the country has its own specialty of kakanin. It can be just made up of glutinous rice (malagkit), coconut milk, and sugar combined. The history of kakanin is rich as its flavour. Many say that every kakanin represents every culture of Filipinos. Filipinos loves to eat rice. We cannot simply hide the fact that we eat rice from the start of the day up to the end of it. We also eat rice sometimes as snacks or merienda. And we the researchers also love to eat kakanin and we see a huge potential to it as a product in the market. The store will be having a cultural ambiance. It is located in Intramuros Manila which is very rich in history. Fikakanin will implement good combinations of historic ambiance of the snack bar, and the affordable price of the meals to bring up satisfactions to the customers.

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VISION OF THE BUSINESS In the next five (5) years, the partners envisions the Fikakanin as the most well-known kakanin shop around the Metro Manila. With over 50 branches and desires to expand and open more branches around the Luzon. Fikakanin will establish a name besides well-known local and international stores that will show the uniqueness of the Filipino-made kakanin. 

To determine the feasibility on establishing kakanin shops in the country



To contribute in Philippine Economy and offers job to Filipinos



To serve quality products with the use of proper marketing strategy



To determine if the location would have a plentiful of demand and a favourable business growth



Apply good quality service that a kakanin shop could offer



To identify if the cost of the products are affordable in the market



To equate profitable to success

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Interpretation of the Logo

A logo is a symbol or other design adopted by an organization to identify its products, uniform, vehicles, etc. We decide to put a circle like twist in order to connect the main goal of our business which is kakanin with a twist. Our kakanin is not like the already known kakanin. We come up with idea to make a combination of the varieties of the kakanin. And a fork in the middle which is commonly used when eating kakanin because of its sticky feeling.

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Project Implementation

Year 2016 2017 Planned June July August September October November December January Activities 1. Business Proposal 2. Feasibility Study 3. Complying Business Legal Requirements 4. Advertising the Business 5. Renovation and Installation of Furniture 6. Recruiting/Hiring and training of Employees 7. Opening of the Business

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Capitalization

The partners agreed to contribute Php 55,000.00 each, amounting Php 275,000.00 in total. The capital will be used to acquire equipment that is needed in the operation of the business. It wall also used to buy raw materials and supplies and to provide for the operating expenses it requires to be established. The capitalization must will be financed by the partners from their own savings. In addition, they will contribute their skill in managing the business to its full extent to achieve the goals and success of the business.

PARTNERS

CONTRIBUTION

Aquino, Angelica

55,000.00

Arcenal, Roi Angela

55,000.00

Granado, Sherylyn

55,000.00

Laca, Genesis

55,000.00

Oczon, Luz Cerinna

55,000.00

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PROJECTED COST Machineries and Equipment Cost

20,997.25

Furniture and Fixtures

2,819.25

Store Supplies Cost

777.75

Kitchen Supplies Cost

3,593.75

Office Supplies Cost

513.00

Material Cost (3 mos.)

55,784.00

Salaries Expense (3 mos.)

76,656.00

Rental Expense (Inclusive of Utility 45,342.00 Expense) (3 mos.) Advertising Expense

1,500.00

Legal Fees/Organizational Cost

17,395.00

Transportation Expense

5,000.00

Maintenance Expense

1,811.00

Uniform Allowance

3,200.00

Total

235,389.00

Margin of Safety

39,611.00

Total Project Cost

275,000.00

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CHAPTER I: THE MARKET Market is the most important aspect of every feasibility study conducted. It is the life that gives success to every business. Even if we find things that make a business profitable, if there’s no demand, the life of the business will reach its ending point even without reaching its peak. It is the very start of the study and without it, we cannot go further to the profitability and next series of studies we are conducting. That’s why we are giving it importance to and good consideration in our study.

The market study aims to determine the following: 1.

The respondents in the study.

2.

The sample size of the study.

3.

To create a questionnaire that is needed in the study.

4.

To analyze and interpret the result of the survey.

5.

To give justice to the price of the product that is acceptable to the

buyers that will yield into profit.

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1.1 CUSTOMERS Fikakanin’s target location is located at Muralla St. Intramuros Manila. It is the oldest district and historic core of Manila, Philippines. It is also called the Walled City, and at the time of the Spanish Colonial Period was synonymous to the city of Manila itself. Nowadays, it is considered as one of the tourist destination of the Philippines and many establishments like schools, hotels, businesses are now present in the current time. Intramuros consists of 5 barangays with a total population of 5,935 as of 2015. We therefore conclude that it is a great location to establish a snack bar. Demand describes a consumer's desire and willingness to pay a price for a specific good or service.

Identifying the respondents Below are the results of the population study. It shows the present finding in our market search. A. Schools

POPULATION (2011)

Mapua Institute of Technology Pamantasan ng Lungsod ng Maynila (PLM) Lyceum of the Philippines University Colegio de San Juan de Letran

8,093

POPULATION (2015) 13,857

9,283 9,896 11,451 13,538 4,574 7,853

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Manila High School B. Employees Government Sector Private Sector C. Tourists D. Residents Total

3,316

4,815

4,889 5,592 411,154 5,015 463,367

5,456 6,085 433,220 5,935 500,655

1.2 COMPETITORS

The area to be covered by the study is in Tiendas Del Parian located at Muralla St., Intramuros, Manila. There are no direct competitors in the area, mostly rice meals and coffee shops are around the area. We choose five (5) indirect competitors (but the 2 carinderia doesn’t have a description so we don’t include it here) namely:

1.

7/11

In the Philippines, 7-Eleven is run by the Philippine Seven Corporation (PSC). Its first store, located in Quezon City, opened in 1984.

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In 2000, President Chain Store Corporation (PCSC) of Taiwan, also a licensee of 7-Eleven, purchased the majority shares of PSC and thus formed a strategic alliance for the convenience store industry within the area. At the end of 2015, 7-Eleven stores totalled 1,602, up 25 percent from 1,282 stores in end-2014. A total of 1,391 7-Eleven stores are in Luzon, 178 in Visayas, and 33 in Mindanao. 2.

MINISTOP

MINISTOP is a 24-hour convenience store chain and is a franchise of MINISTOP Co. Ltd., one of the largest convenience store chains in Japan. The store carries a wide assortment of merchandise and an extensive selection of ready-to-eat products. 3. MCDONALD’S

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McDonald's is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries across 36,538 outlets.

1.3 MARKET RESEARCH To identify the demand, the researcher conducted a survey on the proposed location of the business. The survey helped us to determine the percentage of people who demand for kakanin. In order to get the sampling size, the researchers used the Arithmetic Straight Line formula to determine the number of respondents in each students, employees and passersby/tourist to have balance distributions of questionnaire forms and get a reliable data. Arithmetic Straight Line Formula b = Yn – Yc N–1

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Where: Yc = initial value (first year) Yn = final value (last year) N = number of years A. Schools Mapua Institute of Technology Pamantasan ng Lungsod ng Maynila (PLM) Lyceum of the Philippines University Colegio de San Juan de Letran Manila High School B. Employees Government Sector Private Sector C. Tourists D. Residents

A. Schools Mapua Institute of Technology Pamantasan ng Lungsod ng Maynila (PLM) Lyceum of the Philippines University Colegio de San Juan de Letran Manila High School B. Employees Government Sector Private Sector C. Tourists D. Residents Total

Yn-Yc / N-1 13,857-8,093 / 5-1

b 1,441

9,896-9,283 / 5-1 153.25 13,538-11,451 / 5-1 521.75 7,853-4,574 / 5-1 4,815-3,316 / 5-1

819.75 374.75

5,456-4,889 / 5-1 6,085-5,592 / 5-1 433,220-411,154 / 5-1 5,935-5,015 / 5-1

141.75 123.25 5516.5 230

POPULATION (2016) 15,298

PERCENTAGE

No. of Respondents

3.00%

12

1.97%

8

2.76%

11

1.70%

7

1.02%

4

1.10% 1.22% 86.03% 1.21% 100%

4 5 344 5 400

10,049 14,060 8,673 5,190 5,598 6,208 438,737 6,165 509,977

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The actual population were determined using the growth rate we computed by using the Arithmetic Straight Line Formula.

Slovin’s Formula Formula:

N n= 1+Ne2

Where:

N =

number of people that can qualify in the area of study

E =

margin of error (5%)

n

Solution:

=

number of respondents

n

= 509,977/1+509,977 (0.05)2

n

= 509,977/1,275.94

n

= 399.69 or 400 respondents

The 400 respondents will represent the population of our location. These respondents were requested to answer the questionnaires as part of our research on demand. The information gathered will serve as our foundation to determine the demand for kakanin within the location.

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A. SURVEY ANALYSIS TABLE 1: DISTRIBUTION OF RESPONDENTS ACCORDING TO AGE AGE 15-19 20-24 25-29 30 and above TOTAL

FREQUENCY 187 149 46 18 400

PERCENTAGE 46.75% 37.25% 11.50% 4.50% 100%

FIGURE 1: DISTRIBUTION OF RESPONDENTS ACCORDING TO AGE 50.00%

46.75%

45.00% 37.25%

40.00% 35.00% 30.00% 25.00% 20.00% 15.00%

11.50%

10.00%

4.50%

5.00% 0.00% 15-19

20-24

25-29

30 and above

Analysis: The majority of the respondents’ age are between 15-19 years old which compromises 187 or 46.75% of the total respondents. 149 or 37.25% were between 20-24 years old, 46 or 11.50% were between 25-29 years old, 18 or 4.50% were 30 years old and above.

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TABLE 2: DISTRIBUTION OF RESPONDENTS ACCORDING TO OCCUPATION OCCUPATION Student

FREQUENCY 336

PERCENTAGE 84%

Employed

58

14.50%

Self-employed

6

1.50%

Unemployed

0

0%

TOTAL

400

100%

FIGURE 2: DISTRIBUTION OF RESPONDENTS ACCORDING TO OCCUPATION 90.00%

84.00%

80.00% 70.00% 60.00% 50.00% 40.00%

30.00% 14.50%

20.00%

1.50%

10.00%

0.00%

0.00% Student

Employed

Self-employed

Unemployed

Analysis: Out of 400 respondents, 336 or 84% were students. 58 or 14.50% of the total respondents were employed and 6 or 1.5% were selfemployed.

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TABLE 3: DISTRIBUTION OF RESPONDENTS ACCORDING TO THEIR MONTHLY INCOME/ALLOWANCE ALLOWANCE ₱ 5, 000 and below ₱ 5,001-10,000 ₱ 10,001-15,000 ₱ 15,001 and above INCOME ₱ 5, 000-10, 000 ₱ 10, 001-15,000 ₱ 15, 001-20, 000 ₱ 20,001 and above TOTAL

FREQUENCY 214 91 24 7

PERCENTAGE 53.50% 22.75% 6% 1.75%

9 16 25 14 400

2.25% 4% 6.25% 3.50% 100%

FIGURE 3: DISTRIBUTION OF RESPONDENTS ACCORDING TO THEIR MONTHLY INCOME/ ALLOWANCE ₱ 20,001 and above ₱ 15,001-20,000 ₱ 10,001-15,000

1.25% 6.25% 2.5%

₱ 5,000-10,000

2.25%

₱ 15, 001 and above

1.75%

₱ 10, 001-15,000

6.00%

₱ 5, 001-10,000

22.75%

₱ 5, 000 and below 0.00%

53.50% 10.00%

20.00%

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30.00%

40.00%

50.00%

60.00%

Analysis: This figure shows the monthly allowance or income of the respondents. Out of 400 respondents 336 or 84% are students, 214 or 53.50% of them received a monthly allowance of ₱5, 000 and below; 91 or 22.75% of them received a monthly allowance of ₱ 5,001-10,000; 24 or 6% of them received a monthly allowance of ₱10,001-15,000; and the 7 or 1.75% of them received a monthly allowance of ₱15,001 and above. Out of 400 respondents, 64 or 16% of them are employed and selfemployed, 25 or 6.25% of them received a monthly income of ₱15,00120,000, 16 or 4% of them received ₱10,000-15,000, 14 or 3.50% of them received a monthly income of ₱20,001 and above, 9 or 2.25% of them received a monthly income of ₱5,000-10,000.

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TABLE 4: DISTRIBUTION OF RESPONDENTS WHO BUY KAKANIN

YES NO TOTAL

FREQUENCY 322 78 400

PERCENTAGE 80.50% 19.50% 100%

FIGURE 4: DISTRIBUTION OF RESPONDENTS WHO BUY KAKANIN 90.00%

80.50%

80.00% 70.00% 60.00% 50.00% 40.00% 30.00%

19.50%

20.00%

10.00% 0.00% Yes

No

Analysis: 359 or 80.50% of the total respondents buy coffee in a coffee shop while the remaining 59 or 19.50% don’t buy coffee in a coffee shop.

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TABLE 5: DISTRIBUTION OF RESPONDENTS ACCORDING TO HOW MUCH THEY USUALLY SPEND IN BUYING KAKANIN FREQUENCY PERCENTAGE ₱10.00 81 25.16% ₱15.00 96 29.81% ₱20.00 75 23.29% ₱25.00 59 18.32% Others 11 3.42% TOTAL 322 100% *Out of 400 respondents, only 322 are buying kakanin.

FIGURE 8: DISTRIBUTION OF RESPONDENTS ACCORDING TO HOW HOW MUCH THEY USUALLY SPEND IN BUYING KAKANIN 35.00% 30.00%

29.81% 25.16%

23.29%

25.00%

18.32%

20.00%

15.00% 10.00% 3.42%

5.00% 0.00% ₱10.00

₱15.00

₱20.00

₱25.00

Other

Analysis: Out of 322 respondents, 96 or 29.81% usually spend ₱15.00 in buying kakanin, 81 or 25.16% spend ₱10.00, 75 or 23.29% spend ₱20.00 and 15 or 18.32% usually spend ₱25.00.

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TABLE 6: DISTRIBUTION OF RESPONDENTS ACCORDING TO HOW OFTEN THEY USUALLY BUY KAKANIN FREQUENCY PERCENTAGE Daily 23 7.14% Weekly 120 37.27% Monthly 169 52.48% Annually 10 3.11% TOTAL 322 100% *Out of 400 respondents, only 322 are buying kakanin.

FIGURE 8: DISTRIBUTION OF RESPONDENTS ACCORDING TO HOW OFTEN THEY USUALLY BUY KAKANIN 60.00%

52.48%

50.00% 37.27%

40.00% 30.00% 20.00% 10.00%

7.14%

3.11%

0.00% Daily

Weekly

Weekly

Annually

Analysis: Out of 322 respondents who buy kakanin, 169 or 52.48% buy kakanin monthly; 120 or 37.27% buy weekly, 23 or 7.14% buy daily and the remaining 10 or 3.11% buy kakanin annually.

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TABLE 7: DISTRIBUTION OF RESPONDENTS WHO WILL PATRONIZE OUR KAKANIN BUSINESS FREQUENCY PERCENTAGE YES 298 92.55% NO 24 7.45% TOTAL 322 100% *Out of 400 respondents, only 322 are buying kakanin.

FIGURE 9: DISTRIBUTION OF RESPONDENTS WHO WILL PATRONIZE OUR KAKANIN BUSINESS 100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%

92.55%

7.45% YES

NO

Analysis: 298 or 92.55% of the total respondents will patronize our kakanin business and only 24 or 7.45% of the total respondents said that they will not patronize our kakanin business.

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TABLE 8: DISTRIBUTION OF RESPONDENTS ACCORDING TO WHAT TYPE OF KAKANIN WILL THEY BUY FREQUENCY PERCENTAGE Ube Biko ₱20 24 8.05% Biko Pandan ₱20 29 9.73% Biko Champorado ₱20 21 7.05% Suman Moron ₱20 14 4.70% Lechetin ₱20 9 3.02% Choco Cassava Cake ₱25 35 11.75% Leche Suman ₱25 23 7.72% Puto Flan ₱25 18 6.04% Puto-pao ₱25 15 5.03% Putchinta ₱25 13 4.36% Bibingkang Pinipig ₱25 29 9.73% Sweet Sushi ₱25 19 6.38% Palitaw de Yema ₱20 17 5.70% Sumang Pandan ₱20 14 4.70% Maja de Ube ₱25 11 3.69% Sumang Mangga ₱25 7 2.35% TOTAL 298 100% *Out of 400 respondents, only 298 will patronize our kakanin business.

14.00% 12.00% 10.00% 8.00% 6.00% 4.00%...