BP-final W RRL

St.
Paul University Philippines

TuguegaraoCity, Cagayan 3500 1
Chapter 1
THE PROBLEM AND REVIEW OF RELATED LITERATURE
Introduction
The food industry today has become more diverse, with
manufacturing varying from small, traditional, family-run
activities that are highly labor intensive, to large,
capital-intensive and highly mechanized industrial
processes. Food industry is a series of activities that
facilitate the consumption and supply of food products and
services across the world. With the unending needs and
wants of the people, businesses have to come up with
different outputs of food and drink products, in order for
them to meet the challenges of the rapidly growing global
food market and remain competitive in the long run.
Consumers in this day and varying ages with their
busy schedules are not only interested with products that
are appetizing and ready for quick consumption but with
products that also address health and nutrition wellness.
For this reason, food innovation strategies can help in
SPUP School of Business Accountancy and Hospitality Management

St. Paul University Philippines
sustaining business competitiveness and in meeting the
changing and complex customer demands and preferences.
Food innovation involves the design and development
of new food products, the improvement or combination of
existing food products, research into food trends and food
management (Google). In this light, the researchers though
of a product that can satisfy not only the palate of the
customers but also their required nutrients intake.
The proposed product, Veggienisa (vegan Longganisa),
is to introduce a new version of the ever famous Filipino
delicacy called Longganisa. Longganisa is a common
commodity in the Philippines and is usually served at
breakfast, with almost each region having their own
specialty. Longganisa is a long, pork sausage seasoned
with herbs and spices and put into sausage skins also
known as “casings”. As the population becomes more aware
and conscious of what they eat, Veggienisa will be a
perfect food to meet the healthy diet of individuals
without sacrificing the flavor. Moreover, the product will
be offered at a just and reasonable price that would
greatly relate to its quality.

REVIEW OF RELATED LITERATURE AND STUDIES
History
According to Allen (2015), Longganisa traces its
roots to Spain, where Longganisa is a long, pork sausage
seasoned with paprika, cinnamon, aniseed, garlic and
vinegar. It is sold fresh and must be cooked. It’s not to
be confused with chorizo, which is mostly fermented,
smoked or cured, then sliced and eaten with no cooking
required, or added to flavor a variety of dishes.
In line with Ortiz (2012), at the height of the
Spanish empire, longaniza traveled far and wide — not just
to the Philippines but across the Americas, including
Puerto Rico, the Dominican Republic, El Salvador, Mexico,
Chile, Argentina and Uruguay. Over the course of several
centuries, the defining characteristics of the original
Spanish longaniza changed, with different interpretations
emerging from region to region, and from country to
country.
Along with Wissmann (2014), the Filipino Longganisa
tradition appears to have emerged by way of Acapulco,
presumably around the time Juan de Salcedo, a Spanish

conquistador who was born and raised in Mexico, founded
Manila. An irresistible historical tidbit: his
grandfather, Miguel López de Legazpi, founded the first
Spanish settlements in the archipelago.
For centuries, Manila was a key stop in the Spanish
trading network that included Lima in Peru and Panama, but
served as a spoke of Mexico rather than a hub of empire.
It is no surprise, then, that in some parts of the
Philippines, as in Mexico, the word recado refers to
condiments or seasoning. In the Philippines, it’s also
used to distinguish the spicy version of Longganisa from
the sweet kind commonly known as hamonado. In Spain,
however, the word “recado” has nothing to do with flavor
or cooking, and simply means “message” or “errand”.
The Longganisa Cuisine
The Philippine Longganisa reflects a wide variety of
local cultures — and, like the national dishes
of kinilaw, adobo and sinigang, come in at least as many
versions as there are creative home cooks. If you want to
savor the full spectrum of flavors that define this

phenomenon, you must travel to where these traditional
sausages are made. But first, eat your breakfast.
Use of crop as casing would be very suitable for
specialty products using native chicken meat in place of
broilers. The author recommends further study on crops as
casing material using other poultry species and the
development of specialty products with crops as casing
material.
Filipino cuisine is fast evolving primarily because
of the Filipinos’ perspective on colonial mentality that
foreign dishes are better than Filipino cuisines. It is
the reason why most Filipinos, especially the younger
generation, forget how rich our culture is. Most of the
younger generation would prefer fast food and don’t even
bother knowing or tasting Filipino dishes, resulting to
the extinction of the food culture of the Philippines.
Local flavors
According to J.Tan’s food blog, there is no standard
recipe for the Filipino Longganisa, and its preparation
has always been been open to both local creativity and
inter-generational innovation. You can try improving on

your great-grandmother’s recipe, for example, with a
slight change in how much garlic you throw in. Most
sausage-makers will also confess to just winging it and
flavoring the meat on instinct, improvising with a range
of locally available spices. The result? A wide assortment
of varying flavors and textures.
There are, however, broad categories that are useful
to know, especially if you have certain
preferences. Longganisa de recado is spicy and garlicky.
Among the best servings of spicy Longganisa are those that
come from sausage-makers of Bais in Dumaguete, Lucban in
Quezon, Taal in Batangas, Dipolog, Tuguegarao, Cabanatuan,
Calumpit, Batac and Vigan.
Longganisahamonado, on the other hand, is sweet and
possibly influenced by the Malay sate (satay) and the
sweeter Chinese sausages like lap cheong or siangjiang.
The Longganisa of Bacolod, Cebu, San Pablo and Baguio are
examples of the hamonado tradition. There are also lesser-
known but no less distinctive versions of Longganisa,
among them the sausages from Candaba and Guagua in central
Luzon, which are salty-sour — a possible influence

of pindang, the Kapampangan practice of using a process of
fermentation to tenderize the meat.
The Fresh Factor
The best-known Longganisa continue to follow time-
tested artisanal traditions: they are cased daily, use no
preservatives and are always sold fresh. The sausages
never see the sun, breathe smoke or touch ice.
Most Longganisa are stuffed into casings made from fresh
pork intestines. Others, especially home-made versions, are
often served “skinless”. One version, in San Pablo, Laguna, was
wrapped in the diaphanous membrane lining a pig’s stomach,
called gapen or sinsal. Most Longganisa are made with ground
meat; however, the towns of Taal and Guinobatan in Albay prefer
the texture of rough-chopped pork. Many people like to eat them
well cooked, with small bits of casing and filling fried to an
almost candied crisp. In Guinobatan, where the annual calendar
includes a Longganisa-stringing contest, the casings are sun-
dried prior to stuffing in order to help guarantee that
crispness. Nearly all artisanal sausage-makers will tell you
that nothing comes close to the flavor of freshly made
Longganisa.

The Longganisa Production Process
In view thereof by Livestock, the Longanisa's
striking crimson color stops you in your tracks when you
first come across it, but its spicy, complex taste,
pungent aroma and ease-of-cooking hook you and keep you
coming back for more. Longanisa comes in about as many
forms as a sausage can, but you only have to cook fresh
longanisa, which you find both loose and packed into hog
casings. Like chorizo, which is similar in color and
taste, longanisa comprises about 70 percent lean pork and
30 percent fatback, so you can gently poach it to a safe
internal temperature, and then crisp it in its own fat.
Cased Longganisa
Step 1 Thaw the longganisa sausages on a plate in the
refrigerator for about 8 hours if frozen. Place the
sausages in a straight-sided pan and cover them with about
1/2 inch of water.
Step 2 Set the pan on the stove over medium-high heat and
simmer until the water evaporates, about 15 to 20 minutes.

Step 3 Sauté until the casing crisps, about 10 minutes,
rolling the sausages in the pan as needed to cook all
sides evenly.
Step 4 Drain the longganisa on a few paper towels and
serve immediately.
Loose Longganisa
Step 1 Form the longganisa into patties about 1/2 inch
thick and 3 inches wide or place a palmful of longganisa
on a piece of plastic wrap and roll it into a tight
cylinder. You can also spread the longganisa in an even
layer in the bottom of an oiled sauté pan.
Step 2 Heat a scant amount of oil in a sauté pan and set
it over medium heat. Heat the oil for a few minutes and
add the sausage. If you rolled the longganisa, carefully
unwrap it before placing it in the pan.
Step 3 Fry for 2 to 3 minutes before turning the patties
over with a spatula or stirring the loose sausage. Roll
the rolled longganisa in the pan to cook them on all sides
without breaking them.

Step 4 Fry the longganisa for about 8 to 10 more minutes,
stirring or turning every 2 or 3 minutes. Fully cooked
longganisa sausage has no traces of pink inside, and the
juices run clear.
Step 5 Drain the longganisa on a plate lined with a few
paper towels and blot the top with a paper towel. Serve
immediately.
As said by Philihappy, the Longganisa around the
Philippines: the best of the breakfast staple. In the
Philippines, the terms are used interchangeably depending
on the region. But paying homage to its Spanish
counterpart, longganisa makes use of black pepper in its
ingredients while chorizo substitutes this with paprika.
The Philippine one comes in varieties other than pork, say
tuna, beef, and chicken—all mixed with different spices.
The plastic-like casing is cleaned-out and boiled pig
intestines.

The Top 10 Longganisa in the entire Philippines
1.Vigan Longganisa
Vigan longganisa is what Vigan City in Ilocos Sur is
most known for. The heritage city even has its own
festival held every January for their homegrown product,
which is now being proudly exported. What makes it so
popular is its garlicky and sour notes that come from
the combination of Ilocos sugar cane vinegar
(sukangIloko) and local garlic from Sinait which are
both major products of the province.
2. Lucban Longganisa
Aside from Lucban, Quezon’s Pahiyas Festival, Lucban
longganisa is also one of its pride foods. Their version
also has a garlicky flavor, but unlike the Vigan one
that has a distinct flavor from the vinegar used,
Lucban’s makes use of oregano. Other herbs are also
thrown into the mix which gives Lucban’s version a
different scent.
Try Longsilog Lucban (PHP 115) at any Buddy’s Pancit
Lucban Restaurant! They have branches in Metro Manila,

so you won’t have to go far just to taste this delicious
delicacy.
3. Tuguegarao Longganisa
Tuguegarao longganisa, also called Longganisang
Ybanag, is famous in the region of Cagayan Valley.
Another version that falls into the garlicky category,
the Tuguegarao is plump and stuffed with minced garlic
but manages not to be too overpowering. The yellow color
is due to the achuete(annatto) cooked in oil that is
part of its ingredients.
4. Cabanatuan Longganisa
Known as the Longganisa Capital of the Philippines,
Cabanatuan City in Nueva Ecija is heaven for all lovers
of this breakfast staple. In fact, there are different
variants of the Cabanatuan one, but the most popular is
the batutay, or bototay for some. In this part of the
country, their version of is beef-based, unlike the
usual pork-based fillings. The batutay is sweet and
savory; you can taste the garlic but with a distinctive
sweet taste.

5. Alaminos Longganisa
This one is easy to identify. When you see links
divided by toothpicks on each end instead of the usual
thread, then those are the Alaminos longganisa. Make
sure you top off your trip to the Hundred Islands with
this breakfast favorite of the Pangasinenses. Alaminos
has a strong garlicky flavor, and recognizable
saltiness, which could be from the local sea salt, which
it’s a big producer of!
6. Cebu Longganisa
Aside from lechon and danggit, Cebu longganisa is one
of the most sought-after delicacies in the province. The
Cebuanos call it Longganisa de Cebu and Chorizo de Cebu.
These are links of red balls that are sweet and (a
little) spicy.
7. Calumpit Longganisa
CalumpitLongganisa, or longganisangbawang(garlic), is
a pride of Calumpit, Bulacan. If Cebu’s version is
straight up red, Calumpit’s version is a lot paler. As
the name suggests, it uses a lot of garlic. But what

makes it unique is the flavor from the black pepper;
local sellers may even ask you how much pepper you want
in it.
8. Bacolod Longganisa
In Bacolod, they call the native delicacy “chorizo.”
Bacolod chorizos come in two variants: chorizo recado
(salty and vinegar-flavored with a distinct smoky taste)
and chorizo hamonado (sweet flavored). There are two
popular brands that you can choose from: Manaloto’s and
(Tia Pining’s) Ereñeta Bacolod Chorizo. You can find the
latter at Rustan’s Supermarkets, but the Manaloto’s can
be purchased in Bacolod supermarkets.
9. Pampanga Longganisa
Pampanga longganisa is the sweet-type and skinless
kind. It is probably the most famous and most accessible
one in the country because of the brand called
Pampanga’s Best that is available in almost all
supermarkets nationwide. The Pampanga version also
varies from the fillings used (beef, pork, or chicken)
to the flavor notes (smoky, sweet, garlicky, or salty).

10. Longganisa de Guinobatan
Bicol Express is not the only best dish in the
region. This two-inch delicacy has found its way to the
spotlight when the town of Guinobatan in Albay promoted
their version under the DTI’s One Town, One Product
(OTOP) program. Longganisa-making contests are such hits
during the Guinobatan Longganisa Festival.
The Vegetarian Longganisa
The Veggienisa Logganisa is a small and plump native
sausage, good for about two or three bites. It is garlicky
and has a yellowish color. Although it is eaten anytime,
even as a bread filling, it is traditional favored as
breakfast fare together with fried eggs and steamed or
fried rice. It is best dipped in Ilocos vinegar with
plenty of chili, garlic and onions. Filipinos cook them in
a pan with water. The Longganisa cooks in its own fat
after the water evaporates and is then cooked further
until it slightly caramelizes. A tip to avoid crumbling is
to place it in the freezer for a while before frying it.

Veggienisa or the Vigan longganisa is said to be an
influence of the Mexican salami. The tradition of making
this native has existed since the period of the Spanish
galleon trade. It is distinct from other Philippine
sausages because of its use of the local sugar cane
vinegar and Vigan-grown garlic, which are major products
of the city as well. The Biguenos are so fiercely proud of
their longganisa that they have made it as the product
they would like to be most known for. They had it
recognized as the city’s One Town, One Project (OTOP)
selection under this national government program. They’ve
endeavored throughout the years to be the top longganisa
producer in the Philippines.
For nearly a decade, Vigan has also hosted longganisa
festivals every January which are attended by thousands of
local and foreign visitors. They celebrate the festival
with street dancing and other activities that have Vigan
longganisa theme. They also choose the festival for
launching of projects that help market the native Vigan
sausage not only in the Philippines, but abroad as well.
One of these projects is the financial assistance the
local government has given in improving the packaging of

the products of Vigan longganisa manufacturers. This is to
safe-guard the integrity of the Vigan longganisa from fake
Vigan native sausages that are being sold to unsuspecting
clients.
Problems Processed Meat
According to a new report by Chatham House their
recently published Changing Climate, Changing Diets:
Pathways to Lower Meat Consumption, Global meat
consumption and greenhouse gas emissions are at all-time
highs. The livestock sector accounts for 15 percent of all
emissions, the equivalent to the emissions of all vehicles
worldwide. If global citizens reduced meat consumption, it
would result in over one-fourth of the emission reductions
needed by 2050, which is necessary to keep global warming
below the “danger level” of two degrees Celsius.
Studies show that people who eat too much meat are 20
percent more likely to develop cancer, especially if they
eat a lot of red meat. Pancreatic cancer, in particular,
has been linked to heavy meat consumption. Meat also
contains lots of saturated fat and cholesterol, which can
lead to heart disease.

As said by articles published by FitDay, prrocessed
meats, such as hot dogs, often contain nitrate, a
preservative that may become carcinogenic when heated to
high temperatures during the cooking process. All meats
may form carcinogenic heterocylic amines, or HCAs, during
high-temperature cooking. Marinading meat in vinegar, or
microwaving it before cooking, can help reduce the number
of carcinogenic HCAs in meat. However, meat may also
contain high levels of hormones, which can trigger
reproductive problems and early-onset puberty in children.
Health Benefits
Along with the United States Department of
Agriculture, the amount of vegetables you need to eat
depends on your age, sex, and level of physical activity.
Recommended weekly amounts from each vegetable subgroup
are shown in the two tables below:
Weekly Vegetable Subgroup Table

Amount per Week
Red and Beans
Dark green Starchy Other
orange and
vegetables vegetables vegetables
vegetables peas
2-3 yrs old ½ cup 2 ½ cups ½ cup 2 cups 1 ½ cups
Children
4-8 yrs old 1 cup 3 cups ½ cup 3 ½ cups 2 ½ cups
Girls 9-13 yrs old 1 ½ cups 4 cups 1 cup 4 cups 3 ½ cups

Weekly Vegetable Subgroup Table

Amount per Week
Red and Beans
Dark green Starchy Other
orange and
vegetables vegetables vegetables
vegetables peas
1½
14-18 yrs old 1 ½ cups 5 ½ cups 5 cups 4 cups
cups
1½
Boys cups
14-18 yrs old 2 cups 6 cups 2 cups 6 cups 5 cups
1½
cups
Women 1½
cups
51+ yrs old 1 ½ cups 4 cups 1 cup 4 cups 3 ½ cups
Men
1½
51+ yrs old 1 ½ cups 5 ½ cups 5 cups 4 cups
cups
As Mark Sisson stated on marksdailyapple, the idea
that vegetables are an essential part of a healthy diet
has been hammered into our collective consciousness by
every authority out there. Parents, teachers, scientists,
government health “experts” all stress the importance of
eating your veggies.
An article of Jonathan Pielmayer says that A high
intake of fruit and vegetables lowers the risk of type 2
diabetes, heart disease, stroke and some cancers. These

chronic diseases are unfortunately common – it’s been
estimated a $269 million could have been saved in 2008 if
everyone in Australia met fruit and vegetable
recommendations.
The recommendation to include plenty of vegetables
and fruit in our diet is based on a large body of evidence
showing the risk of a range of health conditions is
reduced as we eat more fruit and vegetables.
A research by a group named Int J Epidemiol suggests
our current targets don’t go far enough. It estimates an
optimal intake for reducing our risk of heart disease and
early death to be around ten serves of fruit and
vegetables a day. Whether we are aiming for two and five,
or ten serves, is somewhat academic – the clear message is
most of us need to increase our fruit and vegetable
intake.
An article posted on whfoods states you need to eat
vegetables every day because you simply cannot find
another food group that is as perfectly matched to our
everyday human needs as vegetables! Vegetables fit us like
a glove. From so many different perspectives, the nature

of vegetables and the nature of human health are matched
up in a way that simply cannot be duplicated by other food
groups, including fruits, legumes, nuts and seeds, grains,
seafood, or poultry and meats.
To begin with, vegetables as a group are so low in
calories that it is very difficult to gain weight even if
you overeat them. (This statement wouldn't apply, of
course, to batter-coated and fried vegetables, or to
vegetables mixed into a thick cheese casserole.) On
average, you are looking at 50 calories (or less) per cup
from most of the World's Healthiest vegetables! That
amount is astonishingly low, even when you compare it to
other food groups within the World's Healthiest Foods.
With the World's Healthiest nuts and seeds, for example,
you're almost always looking at 750 calories or more per
cup. That's 15 times higher than the World's Healthiest
vegetables. With legumes, calories per cup fall into the
225-250 range. For fruits, the calories per cup can drop
down fairly low for extremely watery fruits (like
watermelon, which drops down to about 50 calories per
cup), but it can also spike up to more than 400 calories
per cup in the case of dried fruits like raisins. The

uniquely low-calorie nature of vegetables as a group means
that you can be generous with them in a Healthiest Way of
Eating and not have to worry about the calories.
Optimal nourishment is another reason that vegetables
are important on a daily basis. You need to eat vegetables
every day because you need a supply of vitamins every day.
Some vitamins can be stored for future use and others
cannot. Some of the vitamins that can be stored in the
body are called fat-soluble vitamins such as vitamins A, D
and E. For the body to run its best we also need water-
soluble vitamins. Found within this group are all of the
"B-complex" vitamins, including vitamins B1, B2, B3, B5,
B6, B12, biotin, choline, folic acid, and vitamin C. We
need these water-soluble vitamins every single day because
they can't be stored in the body or can only be stored in
small amounts. And since the body cannot make these
vitamins (or any vitamins), we have to get them from the
food we eat. When considered as a group, vegetables are
unusually rich sources for a full mixture of water-soluble
vitamins. That's why so many health care recommendations
(including the U.S. Food Pyramid) encourage 3-5 servings
of vegetables per day.

When it comes to vegetables, there is also their
abundance of phytonutrients to consider. In the science of
food, no change has been bigger than the discovery of
phytonutrients and their unique place in our health.
Phytonutrients include all of the unique substances that
give foods their brilliant colors, their delicious
flavors, and their unique aromas. They are also the
nutrients most closely linked to prevention of certain
diseases. Carotenoids and flavonoids are the two of the
largest groups of phytonutrients, and there is no food
group that provides them in amounts as plentiful as
vegetables. The phytonutrients in cruciferous vegetables
like broccoli, and in root vegetables like onions and
garlic, are unique when it comes to decreased risk of
certain cancers, and some of these phytonutrients simply
cannot be found in other food groups.
Finally is the pleasure of chewing and amazing
digestive benefits that come from the high-fiber content
of vegetables. Dietary fiber is critical for our health,
not only on a daily basis, but on a meal-by-meal and
snack-by-snack basis as well. Food cannot move through our
digestive tract in a healthy way unless it is fiber-rich.

And, vegetables are some of the very richest sources of
fiber that exist.
Facts articulated on ChooseMyPlate stated these
Nutrients existing on vegetables:
• Most vegetables are naturally low in fat and
calories. None have cholesterol. (Sauces or
seasonings may add fat, calories, and/or
cholesterol.)
• Vegetables are important sources of many nutrients,
including potassium, dietary fiber, folate (folic
acid), vitamin A, and vitamin C.
• Diets rich in potassium may help to maintain healthy
blood pressure. Vegetable sources of potassium
include sweet potatoes, white potatoes, white beans,
tomato products (paste, sauce, and juice), beet
greens, soybeans, lima beans, spinach, lentils, and
kidney beans.
• Dietary fiber from vegetables, as part of an overall
healthy diet, helps reduce blood cholesterol levels
and may lower risk of heart disease. Fiber is
important for proper bowel function. It helps reduce
constipation and diverticulosis. Fiber-containing

foods such as vegetables help provide a feeling of
fullness with fewer calories.
• Folate (folic acid) helps the body form red blood
cells. Women of childbearing age who may become
pregnant should consume adequate folate from foods,
and in addition 400 mcg of synthetic folic acid from
fortified foods or supplements. This reduces the risk
of neural tube defects, spina bifida, and anencephaly
during fetal development.
• Vitamin A keeps eyes and skin healthy and helps to
protect against infections.
• Vitamin C helps heal cuts and wounds and keeps teeth
and gums healthy. Vitamin C aids in iron absorption.
The same article included these benefits
• Eating a diet rich in vegetables and fruits as part
of an overall healthy diet may reduce risk for heart
disease, including heart attack and stroke.
• Eating a diet rich in some vegetables and fruits as
part of an overall healthy diet may protect against
certain types of cancers.

• Diets rich in foods containing fiber, such as some
vegetables and fruits, may reduce the risk of heart
disease, obesity, and type 2 diabetes.
• Eating vegetables and fruits rich in potassium as
part of an overall healthy diet may lower blood
pressure, and may also reduce the risk of developing
kidney stones and help to decrease bone loss.
• Eating foods such as vegetables that are lower in
calories per cup instead of some other higher-calorie
food may be useful in helping to lower calorie
intake.
Health Risks
An exerpt from womenshealthmag stated that Keri
Glassman, M.S., R.D., president of A Nutritious Life and
weight-loss advisor for Women's Health, agrees that fat
unfairly gets a bad rap. "Healthy fat not only has a place
in your diet," she says. "It has an essential role in your
diet—and there’s even emerging research that suggests some
types of saturated fats may have health benefits, like
helping to burn fat stores and lower bad cholesterol."

Glassman isn't against using fat to cook veggies—but
deep-frying is a whole different story. Sure, you can use
a healthier oil (Bittman suggests olive oil, for example).
But when the oil gets hot enough for deep-frying, its
chemical structure changes, which turns into an unhealthy
oil. Plus, whatever you're cooking will absorb way more
oil during deep-frying than it would through other cooking
methods (there goes that whole moderation thing). To make
matters worse, deep-frying veggies breaks down a lot of
the vitamins and minerals they contain.
So while you certainly won't wreck your health by
eating deep-fried foods once a month, Glassman wouldn't
recommend going out of your way to eat deep-fried
vegetables, either. "I wouldn’t say that deep-frying is
the way to get in your healthy fats," she says.
Ultimately, using healthy oils for other cooking methods
like roasting or pan-frying—or eating foods like avocados
and salmon that naturally contain good-for-you fats—are
going to be the best way to make sure you work enough fat
into your diet. Not sure how much you should be eating?
Check out this guide to the amounts (and types) of fats
you need each day.

Also, an article written by PATIENCE PARADOX, MA on
livestrong states frying vegetables can be done properly
to avoid oxidation and retain nutrients, the over-reliance
on fried food leads to obesity. The highest frying
temperatures cause the formation of toxins such as amines,
acrylamides and sulphur compounds. The repeated use of
reheated frying oil can destroy antioxidants in each batch
of food you prepare with it. In addition, large amounts of
fat in your diet contribute to an increased risk of heart
disease, cancer, diabetes and hypertension.
Her research findings showed the July 2007 issue of
the “American Journal of Clinical Nutrition” published a
study by Spanish researchers looking at the types of food
choices that may trigger obesity. The researchers found
that obesity increased in people who consumed lots of
fried foods. Furthermore, a 2005 Harvard Medical School
study found that adolescents who eat large amounts of
fried foods are more likely to have a poor diet and to be
heavier than their contemporaries.

Statement of the Problem
The study aims to determine the feasibility of
marketing Veggienisa Product in Tuguegarao City, Cagayan.
Specifically, it seeks to answer the following questions:
1. What is the profile of the participants in terms
of:
1.1 Gender
1.2 Age
1.3 Educational Attainment
2. Are there interested individuals in buying
Lonnganisaa made up of Vegetables?
3. What is these individuals consider in buying a
Veggienisa?
4. What is the Marketing plan for a Veggienisa
Product in Tuguegarao City?
5. What is the Operational and Production plan for a
Veggienisa Product in Tuguegarao City?
6. What is the Management plan for a Veggienisa

7. What is the financial plan for a Veggienisa
8. What is the Feasibility of selling Veggienisa in
Tuguegarao City?
Significance of the study
The researcher decided to come up with this business
plan primarily to help the community of the city
Tuguegarao City, Cagayan for this can serve as an
additional source of living and at the same time introduce
to them the benefits of eating healthy. This section will
give various significance of the study given.
To the researchers. In conducting the study, the
researchers will acquire new skills and knowledge that
they can use in their profession. This paper will help
them widen their wisdom in the complex nature of the
business world.
To the customers. The proposed business plan will
bring upon an eye-opening innovation of the variations you
can do the original version of Longganisa. The product

also contains nutrients that provide health benefits are
offered at reasonable price.
To the community. This study will help the community
learn that they could make food innovations and
improvements in order to come up with new and better food
products. This will also give the community an opportunity
to engage in a business that will serve as a stepping
stone to economic growth.
To the future researchers. In the future, this study
can be of great help to the future researchers as a
reference when they conduct a similar business plan.
Scope and limitations
This study focuses in identifying costumer’s taste
and satisfaction, the suggestions or recommendations of
the customers for the vegetarian version of Longganisa.
This study limits the coverage on selected people
currently residing in the city of Tuguegarao, Cagayan.
Some students and residents will be covered as a part of
the participants.

Definition of Terms
For purpose of clarity, understanding and giving
light to this research, the following terms are
operationally defined while others are explained as they
were used:
1. Financial Plan. A financial plan is a comprehensive
evaluation of an investor's current and future
financial state by using currently known variables to
predict future cash flows, asset values and
withdrawal plans.
2. Longganisa. Filipino name comes from the Spanish word
longganisa, referring to a type of spicy cold pork
sausage.
3. Management Plan. A project management plan is a
document used to describe every phase of a project.
The components may include initiating, planning,
executing, monitoring and controlling, and closing.
4. Marketing Plan. a written document that describes
your advertising and marketing efforts for the coming

year; it includes a statement of the marketing
situation, a discussion of target markets and company
positioning and a description of the marketing mix
you intend to use to reach your marketing goals
5. Operational Plan. highly detailed plan that provides
a clear picture of how a team, section or department
will contribute to the achievement of the
organization’s goals.
6. Umami.It means savory and delicious. It is described
as the "fifth taste" along with sweet, sour, bitter
and salty.
7. Tofu. It is made from soybean curds, is naturally
gluten-free and low calorie; it contains no
cholesterol and is an excellent source of protein,
iron, and calcium.
Conceptual Framework

All the information gathered were analyzed and used
to come up with a business plan composing of Marketing
Plan, Management and Organizational Plan and Financial
Plan which will became the basis in concluding whether or
not the proposed business is feasible.
Paradigm of the Study
Input Process
1. ProfileOutput
of 1. Analysis of Business Plan
the gathered data of Veggienisa
respondent 2. Needs and
according to: Resource
1.1. Gender Analysis
1.2. Age 3. Formulation of
business plan:
1.3. Civil
3.1 Marketing
Status Plan
2. Preferences 3.2. Technical
of the and
participants Organizational
based on the Plan
questionnaire 3.3.
Management
3. Suggestions Plan
and Operational
recommendatio plan
ns from the 3.4. Financial
customer Plan
participants
and panellist
4. Condition and
status of the
Review of Related
target
market.

Feedback
(Figure 1)
Conceptual Paradigm of the Study (Figure 1)
This paradigm shows how the researchers were guided
in conducting the study. The framework shows the input-
process-output model. The input includes the profile of
the participants in terms of gender, age, and civil
status. Preferences of the participants. Suggestions and
recommendations from the customer and panelist and also
the condition and status of the target market. The second
box includes the analysis of gathered data, needs and
resource analysis, and the formulation of business plan:
Marketing Plan, Technical and Organizational Plan,
Management Plan, Operational Plan, and Financial Plan. And
the output shows the Business Plan of Veggienisa.

Chapter 2
METHODOLOGY
This chapter addresses research methodology and
procedures intended for this research. It is concerned on
the presentation of research design, research instrument,
the selection of participants, data gathering procedure,
and analysis of data gathered.
Research Design
This study is a descriptive research; it deals with
developing ideas and uncovering trends in thought and
opinions by diving deeper into the problem from
understanding reasons, opinions and suggestions from the
participants. This study will as well promote industrial
advancement for the current market. In addition, this
study would present a more innovative product that suits
the changing preferences of the contemporary market.
Participants of the Study
The researchers randomly selected the parents and
students in Tuguegarao City, Cagayan to be the
participants of this study.

Sampling Techniques
Instrumentation
The researchers used the following instruments to
gather information in the study:
 Questionnaire
The researcher used questionnaire in gathering data
pertinent to the study. A letter explaining the purpose of
the study was attached together with the questionnaire. A
questionnaire is usually considered as the principal
research instrument since it is the best and efficient way
to gather data. The questionnaire was given to the
participants to determine the feasibility of putting up
the study-inn establishment. It consists of practical
questions that are easy to analyze which helped the
researcher to further evaluate the study.
 Interview
This research instrument is relevant to the
participants. It helped the researchers to gather general
information regarding the study. It became an instrument

to discuss matters which were not clear in the
questionnaire.
Data Gathering Procedure
In pursuing this particular study, the following
steps will be undertaken:
1. The researchers sought the permission to conduct
study from the Office of the School of Business,
Accountancy and Hospitality Management.
2. The researchers sent a letter of request which
pertains to the study to the office.
3. The researchers personally distributed the
questionnaire to the participants.
4. The researchers collected the questionnaires for
the collation, tabulation and analysis to the
participants’ responses.
Data Analysis Procedures
Upon retrieval of the questionnaires, the data were
collated, tabulated and treated statistically through the
following tools:
1. Statistics, percentage frequency distribution is a
table that displays the frequency of various

outcomes in a sample. Each entry in the table
contains the frequency or count of the occurrences
of values within a particular group or interval,
and in this way, the table summarizes the
distribution of values in the sample. This method,
the researchers were able to fully grasp the
various preferences of the participants, how they
differ to one another, and how significant are the
differences.
2. Break-even and Financial Statement Analysis was
used to determine when the business will be able
to cover all its expenses and begin to make a
profit. It is important for the researchers to
identify the business’ startup costs because
from this, it will help them to determine the
sales revenue needed to pay for the ongoing
business expenses. Through this type of analysis
also, the researchers had a clearer vantage
point to the budget planning, cost adjustments,
financial management and selling price of the
product.

Chapter 3
RESULTS AND DISCUSSION
Participants
Table 1.Frequency and Percentage Distribution of the
participants in terms of Gender.
Gender Frequency Percentage

Male 23 46%
Female 27 54%
Total 50 100%
The table reveals that out of 50 participants and 46%
or 23 of it are male and 54% or 27 of it are female.
Hence, most of the participants are female
participants in terms of Age.
Age Frequency Percentage

15-20 9 18%
21-30 23 46%
31-above 18 36%
Total 50 100%
The table shows that out of 5 participants, 18% or 9
are within the range of age of 15-20, 46% or 23 of which

are in the range of 21-30 years of age and 36% or 18 are
in the 31 and above years of age. Thus, majority of the
participants are within the range of 21-30 years old.
participants in terms of Civil Status
Civil Status Frequency Percentage

Single 26 52%
Married 22 44%
Widow/er 1 2%
Legally Separated 1 2%
Total 50 100%
The table displays the civil status of the
participants. That out of 50 participants, 52% or 26 are
single, 44% or 22 of the participants are married, and 2%
or 1 is widow/er and 2% or 1 is legally separated. Hence,
most of the participants are single.

participants in terms of whether they eat Longganisa or
not.
Frequency Percentage
Yes 50 100%
No 0 0%
Total 50 100%
The table discloses that out of 50 participants, 100%
or 50 of them eat Longganisa and none do not eat
Longganisa. Therefore, all participants eat Longganisa.
participants in terms of why they eat Longganisa.
Reasons Frequency Percentage

Affordable 18 36%
Delicious 37 74%
Easy To Cook 26 52%
Goes Well with other foods 9 18%
Total 50
The table expresses that out of 50 participants, 36%
or 18 because it is affordable, 74% or 37 eat Longganisa
because it is delicious, 52% or 26 eat Longganisa because
it is easy to cook and 18% or 9 eat Longganisa because it

goes well with other foods. Thus, majority of the
participants eat Longganisa because it is delicious.
participants in terms of factors the participants consider
in buying a Longganisa.
Factors Frequency Percentage

Taste 48 96%
Texture 14 28%
Packaging 4 8%
Price 18 36%
Cleanliness 1 2%
Flavor 1 2%
Total 50
The table indicates that out of 50 participants, 96%
or 48 consider taste, 28% or 14 consider texture, 8% or 4
consider packaging, 36% or 18 consider price, 2% or 1
consider cleanliness and 2% or 1 consider flavor. Hence,
majority of the participants consider taste when buying a
Longganisa.

Table 7. Frequency and Percentage Distribution of the
participants in terms of what type of Longganisa do they
prefer.
Type Frequency Percentage

Skinned 14 28%
Chorizo 3 6%
Garlic 39 78%
Total 50
The table reveals that out of 5 participants, 28% or
14 prefer skinned Longganisa, 6% or 3 prefer chorizo and
78% or 39 prefer garlic Longganisa. Therefore, majority of
the participants prefer garlic Longganisa.
participants in terms of how often do they eat Longganisa.
Period Frequency Percentage

Everyday 1 2%
Once A Week 38 76%
Twice A Week 3 6%
Thrice A week 2 4%
Once A Month 6 12%
Once A Year 0 0%
Total 50 100%
The table shows that out of 50 participants 2% or 1
eat every day, 76% or 38 eat once a week, 6% or 3 eat
twice a week, 4% or 2 eat thrice a week, 12% or 6 eat once

a month and none eat once a year. Hence, majority of the
participants eat once a week.
participants in terms of how much they consume Longganisa
on a weekly basis.
Kilograms Frequency Percentage

¼ 12 24%
½ 26 52%
1 9 18%
More than 1 3 6%
Total 50 100%
The table shows that out of 50 participants, 24% pr
12 eat ¼ kg of Longganisa per week, 52% or 26 eat ½ kg of
Longganisa per week, 18% or 9 eat 1 kg of Longganisa per
week and 6% or 3 eat more than 1 kg of Longganisa per
week. Thus, majority of the participants eat ½ kg of
Longganisa per week.

participants in terms of whether they are willing to eat a
Longganisa made of vegetable.
Frequency Percentage
Yes 32 64%
No 18 36%
Total 50 100%
The table shows that out of 50participants, 64% or 32
are willing to eat a Longganisa made of vegetable and 36%
or 18 are not willing to eat a Longganisa made of
vegetable. Therefore, most of the participants are willing
to eat a Longganisa made of vegetable.
participants in terms of the price range they are still
willing to buy a Longganisa made of vegetable.
Price Frequency Percentage

50-100 7 22.58%
101-150 13 41.94%
151-200 11 35.48%
201 and above 0 0%
Total 31 100%
The table shows that out of the participants who are
willing to buy a Longganisa made of vegetable, 22.58% or 7

are willing to buy at a price of P50-100, 41.94% or 13 are
willing to buy at a price of P101-150, 35.48% or 11 are
willing to buy at a price of P151-200. Hence, majority of
the participants who are willing to buy a Longganisa made
of vegetable is willing to pay P101-150 per kilo
participants in terms of the reason why they are not
willing to eat a Longganisa made of vegetable.
Reason Frequency Percentage

Traditions 5 26.32%
Taste Difference 2 10.53%
Carnivorous 12 63.16%
Total 19 100%
The table reveals that out of the participants who
are not willing to buy a Longganisa made of vegetable,
26.32% or 5 because of traditions, 10.53% because of taste
difference and 63.16% or 12 because they are carnivorous.
Hence, majority of the participants are not willing to eat
a Longganisa made of vegetables is because they are
carnivorous.

Chapter 4
BUSINESS PLAN
A business plan is a plan for attaining the business’
goals and objectives for success. This aids researchers in
carefully putting up a business. This chapter includes the
Needs and Resources Analysis, Market Study, Marketing
Plan, Management and Organizational Plan, Production Plan
and Financial Plan.
“Veggienisa”
The researchers noticed the high demand for processed
foods, specifically, Longganisa in Tuguegarao City. Due to
its delectable taste and affordable price, Longganisa has
become a staple viand in Region II. With many variations
created by expert Longganisa makers, families have
experienced a variety of versions made in order to meet
their own tastes.
Due to the fact that Longganisa is made from fatty
meat, sugar, preservatives, and other spices that
considerably risk a person’s health the researchers
concerned themselves with the idea that Longganisa may be
created with ingredients that may lower the probability of

endangering one’s health. In this light, the researchers
proposed a version of Longganisa that is not made with
meat, but with mushrooms and tofu as the main ingredients
which was named “Veggienisa”, since the main objective of
this product is to create a variation of Longganisa that
is significantly healthier and more affordable, but still
satisfies the yearning of the consumers’ taste buds.
Brief Description
“Veggienisa” is a version of Longganisa made entirely
without meat and preservatives. This is a healthier
substitute to the Longganisa that consumers are used to
buy. The Veggienisa will not only provide a substitute for
Longganisa, but it will also capture the vegetarian market
for it does not contain any meat. Veggienisa will also aid
in the diet plans of those who wish to lessen their fatty
intakes, thus, also capturing the market for people who
aim to lead healthier lives. And, due to the fact that
meat is not in the list of ingredients, Veggienisa will
also be much more affordable than the usual Longganisa,now
capturing the market of those who look for cheaper
alternatives.

The researchers’ idea of introducing this product was
solely based on the need of the consumers for healthier,
more affordable foods and wholesome lifestyles.
Need Analysis
According to the United Nations Food and Agriculture
Organization, the Philippines is among the developing
countries with high levels of obesity and under-nutrition.
“Obesity, as a form of malnutrition, results from
shifts from local and traditional diets to foods that are
increasingly heavy in salt, sugar and fat or processed
foods. The shift to a steady diet of processed food is due
to the increasing cost of nutritious and natural food.”
the United Nations Food and Agriculture Organization (FAO)
stated in one of their reports.
Many Filipinos, youth and adults alike, are looking
for healthier alternatives for their usual intakes of
processed foods. One of the most commonly bought processed
foods here in Cagayan is Longganisa. Longganisa is usually
made from ground pork, garlic, and other spices, and has
been dubbed as “the pork of morning” of many Tuguegarao

households, as Longganisa has taken its place at the
breakfast table. Although Longganisa is a delectable and
satisfying viand, it poses a considerable amount of risk
to a person’s health.
Eating pork products, which are loaded with artery-
clogging cholesterol and saturated fat increases one’s
chances of developing heart disease, diabetes, arthritis,
osteoporosis, Alzheimer’s, asthma, and impotence.
Furthermore, the World Health Organization’s International
Agency for Research on Cancer has put processed meat
(corned beef, luncheon meat, beef jerky and sausages
(Longganisa)) in the same danger category as smoking or
asbestos, with a confirmed link to colon and stomach
cancer.
In this light, the researchers have come up with the
idea to make Longganisa a health-friendlier staple food by
creating a version of it that not only does not put your
health at risk, but also opens a possibility of living a
better lifestyle. “Veggienisa” shall have primary
components of tofu and mushrooms, which also bring to
light many health benefits that can be derived from such.

Resource Analysis
Tuguegarao City, Cagayan is home to many Longganisa-
making and selling family businesses that cater to a wide
variety of tastes and preferences. Consequently, various
suppliers of raw materials such as meat and other spices
from all over the region, if not, the country, have
flocked to Tuguegarao in order to capture the market for
their goods. Thus, making the work of looking for
Longganisa casings easier and faster.
One of Veggienisa’s main ingredients is mushroom.
Relatively, one of the Department of Trade and Industry
Region II’s Top 3 Priority Investment Areas for Agri-Aqua-
Marine Based industries is Mushroom Production.
Consequently, mushrooms can be commonly found right in our
region.
The researchers also decided to put up the Veggienisa
Business in Tuguegarao City because 1) Tuguegarao City is
the Commercial Capital of Cagayan and 2) Tuguegarao City
has the largest population in the whole of Cagayan, thus,
making buying supplies, selling and marketing products
more efficient and more effective.

Furthermore, the business shall employ local
Longganisa makers who are veterans in the Longganisa
business not only because they know how to make
Longganisa, but also because they have connections around
Cagayan.
MARKET STUDY
Market Share
The proposed Longganisa store will be located at a
strategic place at the Tuguegarao City’s Centro. Not only
will this benefit the store by ensuring more customers,
but it will also lessen the hassle for customers of
traveling far just for choosing to buy and eat healthier
food. It will also be a practical location to obtain
supplies for Veggienisa.
Market share of our data was derived by using this
formula:
Total population x % of consumers willing to buy
Number of competitors plus 1

Target Market
The target markets are Tuguegaraoeňo and/or Cagayano
Households that consider Longganisa as one of their staple
food. Another target market is the people who are looking
for healthier and cheaper alternatives for processed meat
products. Additionally, one target market is Vegetarians
who still wish to eat meat/meat-like food without
violating their norms.
 Target Market is computed using this formula:
Market Share x % of participant will to buy Veggienisa
Market Strategy
People nowadays do not easily buy into innovations
unless there are proofs of support from standard-setting
bodies and evidences of health benefits. That is why in
order to facilitate factual marketing, the researchers
will first obtain endorsement from government agencies
that may add value to the said product, such as the
Department of Science and Technology, Department of Trade
and Industry, and Bureau of Food and Drugs. Once these
endorsements are given, the researchers will tap local
supermarkets for partnerships and understandings with them

so that Veggienisa may be strategically placed on publicly
advertised markets and such. The researchers will also use
the power of social media in terms of advertisement,
especially since majority of social networking site (SNS)
users are physically and health conscious youth and
adults. Through social media, the researchers plan on
educating the netizens with regards to the dangers of too
much fat intake and the benefits one can derive from
eating healthier alternatives. Furthermore, the
researchers plan on showcasing and promoting Veggienisa by
joining lifestyle and science innovation conventions that
cater to products such as ours so as to promote on a
national level the need for natural modernization through
the use of healthier lifestyles.
Supply and Demand Analysis
The acquisition of the ingredients of Veggienisa does
not pose much of a problem because Cagayan is an agri-
based province that caters to various agricultural
plantations, ranging from rice to corns, and other staple
food. Consequently, supply of raw materials for Veggienisa
is abundant and more than enough.

Hopefully, Cagayanos will embrace the concept of
healthier alternatives because these alternatives are
grown right in their backyards, and not only will this
benefit the researchers, but will also give profit to the
province of Cagayan by ensuring that all supplies shall be
obtained from them, thus achieving the mission of
“Tangkilikin ang sariling atin”.
Below are the listed factors that significantly
affect the demand and supply of the Exotic Foods:
1.Price. As the price of the raw materials increases,
the pricing of Veggienisa as a finished product also
increases.
2.Quality of the Product. The quality of the finished
product plays a major role on its marketability. No
matter how healthy and helpful the ingredients maybe,
if the quality as a whole is poor, then the demand
for such decreases.
3.Availability of the Raw Materials. Since Veggienisa
will be manufactured at Tuguegarao City, Cagayan, and
all its ingredients are also from the province, then
the availability of the product will significantly

increase the demand for it as there will be no
waiting time for delivery.
4.Market Impact. Cagayanos are fond of savory and
spiced products, thus making Veggienisa a contending
competitor in the market, since the researchers do
not intend to compromise the taste of the product
just for the health benefits it may contribute. In
other words, taste bud satisfaction is leveled with
the need for healthier alternatives. And although
many businesses compete for the Longganisa market,
Veggienisa will be the first of its kind in Cagayan.
MARKETING PLAN
A. Marketing Description
The ideal customers of Veggienisa are those who
regularly consume processed meat such as Longganisa but
seek healthier alternatives for such. Another ideal market
is the Vegetarian community who wishes to eat Longganisa
without sacrificing their norms. Another market is those
who seek cheaper products than processed meat. This
business proposal shall provide their wants, needs and

reach their expectations of a cheaper, healthier
alternative to processed food.
B. Marketing Program
To promote the business, linkages and connections
will be established through formal partnerships and
agreements prior to the opening in order to ensure that
there will be an adequate number of people already aware
of the existence of Veggienisa. Social media campaigns
will also be extensively utilized where promotional posts
(photos and videos) shall be used to enlighten the
millennial crowds and other netizens. On the day of the
opening, Veggienisa shall be giving out cooked free
samples and demonstrations on how to cook the product in
order to get attention from passersby. Also, discounts
will be given to the first 50 buyers of the said product.
C. Pricing strategy
The proposed business shall base its pricing strategy
to lower than the Longganisa product. This will likely
penetrate the market. This will gain momentum to gain
higher profits later on. This strategy will be
complemented with Psychological Pricing strategy. This is

a pricing strategy that will attract customers
psychologically. Customers tend to perceive odd prices as
being significantly lower than they are, tending to round
to the next lowest monetary unit. Thus, prices such as
1.99 are associated with spending 1 rather than 2. The
theory that drives this is that lower pricing such as this
institutes greater demand than if consumers were perfectly
rational.
D. Competitive Positioning
Veggienisa is the pioneer Longganisa made out of
mushrooms and tofu that will hit the local market,
offering not only cheaper products, but also healthier
alternatives that aid in giving the public the chance to
redirect themselves to healthier lifestyles. Veggienisa is
the first and only of its kind in Cagayan that will
promote Agri-economic benefits in the form of health-
friendly consumer products.

OPERATIONAL AND PRODUCTION PLAN
A. Plant Location
It will be conveniently located in the Mall of the
Valley, Tuguegarao City, Cagayan.

B. Stall Layout
C. Floor Plan

D. Production Process
Ingredients
 1 can of Golden Mushroom and Jolly Mushroom soaked
in warm water for at least 20 minutes, minced.
 12 ounces extra-firm tofu, drained, pressed,
crumbled
 1 cup of Breadcrumbs
 3/4 cup brown sugar
 1 garlic, peeled, crushed, and minced
 5 tablespoon vinegar
 5 tablespoon Soy Sauce
 2 tablespoons soy sauce
 1 pack of black pepper
 1 cup of breadcrumbs

 1/4 Carrots
 1/8 Baguio Beans
 ½ Cabbage
Procedure
1. Using a bowl, mix all ingredients thoroughly.
2. Add breadcrumbs. Thoroughly combine everything using
your hands so the breadcrumbs could soak up the
moisture from the mixture.
3. Set aside and let it marinate for at least 30 minutes
in the fridge.
4. Taste mixture and adjust seasoning to taste.
5. Still using your hands, form mixture into sausage links
(or whatever shape you desire). Add more breadcrumbs if
needed to firm up.
6. Wrap and pack all formed Veggienisa.

MANAGEMENT PLAN
A. Form Of Organization
This business will be a partnership to procure enough
to finance the starting capital of P100, 000 and to have a
profound supervision in the operations while giving
quality services to their clients.
The table illustrates the time of preparation from
the start of the business operation.
Estimated
Week
Activities Cost
1 2 3 4 5 6 7 8 9 10 Php
Preparation of 2,000.00
Business Plan
Product 25,000.00
Development
Try- out of 800.00
products
Hiring 500.00
Phase 1: 2,000.00
Production of
product: Training
of employees
Purchase of Meet 15,000
and Vegetable
Grinder
Purchase of 15,000.00
Refrigerator
Purchase of 4,000.00
Kitchen Tools
Partial Purchase 7,750.00
of Furniture &
Fixtures

Trial run 2,000.00
Advertisement 5,000.00
Grand opening/ 5,000.00
Blessing of the
store
Business 12,915.00
Registration/
Licenses/
Sanitary Permit/
Health clearance
BIR Registration 500.00
Total pre-operating cost P97, 465.00

Two basic production planning strategies to address demand
fluctuations:
Strategy Description
Maintains a stable workplace at a
constant production rate with the
shortages and surpluses being
Level Production absorbed by and of the following:
Strategy  Changing the inventory
levels
 Allow order backlogs
 Promotional Activities
Important considerations of Level Production Strategy:
Specific Methods Costs

Produce in earlier period Cost of holding inventory.
and hold until product is
needed.
Offer to deliver the Delay in receipt of
product or service later, revenue, at minimum; may
when capacity is lose customers.
available.
Exert special promotional Advertising cost,
activities to shift the discounts, other
demand from slack period promotional programs.

B. Management Team
The proponents will likewise supervised by a general
manager of the business and lead the business,
Employee Job Description Job

Salaries
Qualification
General A general manager Must have at P20,000

Manager is an executive who least a monthly
has overall bachelor’s
responsibility for degree in
managing both the business
revenue and cost management or
elements of a a related
company’s income field.
statement, known as
Must have a
profit and loss
leadership
responsibility.
skills, time
Frequently, the
management,
general manager is
and good in
responsible for
budgeting.
effective planning,
delegating, Must have at
coordinating, least two to
staffing, three years of
organizing and experience.
decision making to
attain desirable
profit making
results for an
organization.

C. Personnel Plan
The partnership will be hiring a Cashier/Accountant
and three (3) production worker– depending on the
demand of the product. The higher the demand may lead
in highring an additional worker. We have factored in
these salaries into our forecasts. If we do bring on
employees there will be extensive training required
to ensure that our product taste and texture is
always consistent.
Employee Job Description Job

Salaries
Qualification
Cashier/1. Responsible in Must be a P15,000

Accounting tracking sales, Business monthly
managing inventory Administration
or making payroll, Graduate.
process payments Must have a
made with background in
cash, checks, accounting
credit cards, and practice and
debit cards. Must have an
ensure that there excellent
is enough cash in customer
the cash drawer interaction
and skills. Able
2. maintain correct to stand for
cash balances at extended

cash registers periods.
The role of the Must be Minimum

Production production is to atleast a High wage of
Worker support the general School or P360 per
manager in ensuring TESDA Graduate laborer
the smooth with and worked
functioning of the experienced in for a
business. The making process standard
production worker food. eight (8)
is responsible for: hours of
Ensuring products work a day
are made with
careful diligence
and care, accuracy
and precision;
Strategic sales
techniques and
interpersonal
effectiveness.
D. Vision Statement
That our product, Veggienisa will not only be known
in the country but will also be recognized globally
through its taste and health benefits.

E. Mission Statement
The researchers’ aim will not only to gain profit but
also to bring people a fresh look of native Filipino food.
F. Organizational Chart
PARTNER A PARTNER B PARTNER C PARTNER D

(Manager)
Production
Cashier/ Worker
Accountant
CUSTOMERS

Chapter 5
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
This chapter presents the summary of finding,
conclusions and recommendations.
Summary of Findings
The significant findings were summarized as follows:
1. Profile of the Participants
1.1 Gender - Majority of the participants are female.
1.2 Age - Majority of the participants are within the
range of 21-30 years old.
1.3 Civil Status - Majority of the participants are
single.
2. How many customers are interested in buying Longganisa
made up of vegetables?
It is viewed that 64% of the household consumers are
willing to buying a Longganisa made up of vegetables due
to curiosity. It is reflected in the consumers' behaviour
regarding their willingness to try innovative food

products. They tend to consume products which are new in
the market that like in UK, consumers were not the most
inclined to adopt innovations, but they were not afraid of
new foods either. The results provide strategic and unique
information about consumers for the food industry, aiming
at supporting the development of innovative food products.
(Barcellos, Aguiar, Ferreira, Vieir 2009).
3. What do these individuals consider in buying
Veggienisa?
It is concluded that 41.94% of the respondents
consider the price in buying a Veggienisa is the taste
that worth P101-150 per kilo. It is noted that majority of
the consumers can consume ½ kg of Longganisa once a week.
Consumer nowadays perceives alternative products that are
lesser cost with greater benefits. High food prices can be
a barrier to healthy eating if food products are perceived
as expensive and the consumers are not willing to accept
the higher prices. Food price attitudes were hypothesized
to have an impact on consumers’ willingness to pay
judgements and their willingness to buy premium-priced
food products. Feelings of fairness or unfairness might be

a core element of food price attitudes that greatly
affects purchasing power of the people. (Ollila 2011).
4. Marketing plan. To promote the business, it will be
offered to the consumers in a very affordable price which
is less than the cost of a Meat process Longganisa. Social
media campaigns will also be extensively utilized where
promotional posts (photos and videos) shall be used to
enlighten the millennial crowds and other netizens. Also,
discounts will be given to the first 50 buyers of the said
product.
5. Operational and Production plan. The business will run
and operate 7 days a week since production of Veggienisa
has a constant demand in the market place. This is based
on the environment scanning that was conducted by the
researchers. The business will produce Veggienisa product
in a per kilo basis every day since the production of
vegetables is on its short perishable life. Furthermore,
the business assume that there will be a .05 ending
inventory in terms of raw materials.

6. Management plan. The business will be managed by the
partnership having partner B as the standing manager. The
annual revenue of the business, based on its financial
report is high. Thus, close monitoring must be observed.
7. Financial plan for a Veggienisa product
7.1 LIQUIDITY
The Current Ration of the business of the entity
is inclining. It implies that business is
efficient to squeeze profit from its assets. The
quick Ratio of the business of the entity
suggests high liquid assets are sufficient to
cover up current liabilities. Current cash debt
coverage of the business entity, the net cash
provided by operating activities are in good
standing against the average current
liabilities.
7.2 PROFITABILITY.
A. The business entity’s profit margin implies
that the business will grow steadily. The return

of assets of the business entity is declining
due to the high amount of net cash inflow of the
company which implores that income being
generated using its assets inefficient. The
business entity’s return on equity as per
implication, the business will be generating a
substantial amount of profit from the partners’
investment.
8. Feasibility of establishing a Veggienisa product
A. Breakeven Analysis. The business is capable of
generating profit from its operation throughout its
five years of business as evidenced by the derived
breakeven sold in kilograms amounting 3,965 in first
year, 3816.89 in the second year, 3650.54 in the
third year, 3519.37 in the fourth year, and 3364.50
in the fifth. The actual units sold amounting 13575,
16848, 20910, 25952 and 32209 for year 1, 2, 3, 4,
and 5 respectively.

Conclusion
Based on the findings of the study, the following
conclusions were drawn:
1. Longganisa is widely consumed by Tuguegaraoeṅos and
most consumers consider convenience in cooking.
Most of those who are not willing to eat Veggienisa
are carnivorous.
2. As the market is in constant demand of Longganisa
products, a 7-day per week operation in business is
needed to keep up with the demands.
3. Veggienisa is not known to the locals. The
knowledge should be spread in order to establish
the business.
4. A P100,000 capital is needed in establishing the
business
5. The product is feasible for its five years of
operations, earning an average of 13.38% of its
gross profit margin.

Recommendation
As a result of the findings of this study the
following are the recommendations of the researchers:
1. Marketing. The Veggienisa product must be sold in
seven days a week to maximize the revenue. Research
and Development must be conducted annually to meet
the demand and trends in the dynamic market. The
promotion of the product must be made through
social media. Also, Since the Veggienisa product is
a newly innovated product, its benefits must be
included in the promotion or in the packaging. The
telephone number of the business must also be added
to the packaging design for consumers’ inquires and
future sales.
2. Operational and Production. Creating a partnership
in the markets or sari-sari stores in Tuguegarao
will be the best way to increase the demand of the
products. The product in processing and ingredients
must be considered. Various kinds of flavors must
be added to the product to satisfy the different
taste of the consumers.

3. Management. A proper training must be conducted
atleast a month prior to the commencement of the
business for the workers, to assure the quality is
in accordance to what it should be. Business
expansion should be established after years of
profiting.
4. Financial. The Veggienisa must be sold equal or
lower than 132 based on the weighted preferred
price of the consumers, to maximize the consumers
willing to pay.
5. Feasibility. To solve the declining return of
assets ratio, the business must invest its unused
cash to purchase new equipment and machineries that
will definitely help the production of the product
more productive and efficient.

Chapter 6
FINANCIAL ASPECT
Financial Assumptions
 Population represents the number of household unit in
Tuguegarao City and increases by 1.0257% every year
 Market share increases by 10% every year
 There will be three hundred forty four (344) working
days in a year and a total of three hundred sixty
five (365) days a year. Twenty-one (21) days are
allotted for holidays, day-offs, leave and
calamities.
 Total Kilogram Consumed for Year 1 is the weighted
Number of Kilos consumed on a weekly basis.
 Annual Consumption of Longganisa in Kilogram
increases by 10% every year
 Budgeted Sales in Kilogram = Target Market x Annual
number of Kilogram Consumed
 There will be no beginning and ending work in process
inventory.
 No Beginning Inventory for Year 1 and the Ending
inventory is 5% annually for all non-perishable raw

materials and all perishable resources will be put in
to process and repurchase every year.
 The Suggested Retail Price (SRP) of each items used
in production increases by 5% due to the Tax Reform
Acceleration Inclusion or the TRAIN LAW.
 The Standard Number of Hours Worked per kilogram is
(0.33 hrs) or twenty (20) minutes
 A minimum wage of P360 per laborer and worked for a
standard eight (8) hours of work a day.
 An increased in number of laborers is directly
proportional to the increase of production in the
current year.
 Laborers wage will increase by 2% annually. This is
based on the net income of the business will increase
annually.
 Markup on Selling Price is 25% of Product Cost.
 Depreciation is computed using the straight line
method of depreciation. Salvage value is five percent
(5%) of cost.
 Kitchen tools are depreciated as one and has an
estimated useful life of 5 years.

 The refrigerator has an estimated useful life of 15
years.
 The motorcycle has an estimated useful life of 20
years.
 The Kitchen Sink Set has an estimated useful life of
25 years.
 The Wooden Long Table has an estimated useful life of
15 years.
 The Stackable Plastic Chair has an estimated useful
life of 20 years.
 The Cabinet for Kitchen has an estimated useful life
of 25 years.
 The Electric fan has an estimated useful life of 10
years.
 Partner A, B, C, and D will contribute P30, 000, P15,
000, P20, 000 and P35, 000 cash respectively. Partner
C will serve as a managing partner and will receive a
salary of 13,500 monthly.
 Partnership Profit and Losses will be allocated each
year according to the following plan:

 Interest of 10% will be accrued by each partner
based on the Beginning Capital for the Year.
 In Managing the partnership, Partner C is to
receive for a bonus equal to 20 percent after
interest, salaries, and bonus.
 Any remaining profit or loss will be divided
equally between the four partners.
 Partner A, C, and D is allowed to withdraw 5% of
their beginning capital every year.
 Tax expense will be 30% of Partnership’s net income
before tax of the current year.
 Advertising Expense is assumed to decrease by P500.00
annually until it becomes zero.
 A monthly Rent Expense of P10, 000 will be
recognized.

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Paul University Philippines

THE PROBLEM AND REVIEW OF RELATED LITERATURE

The food industry today has become more diverse, with

manufacturing varying from small, traditional, family-run

activities that are highly labor intensive, to large,

capital-intensive and highly mechanized industrial

processes. Food industry is a series of activities that

facilitate the consumption and supply of food products and

services across the world. With the unending needs and

wants of the people, businesses have to come up with

different outputs of food and drink products, in order for

them to meet the challenges of the rapidly growing global

food market and remain competitive in the long run.

Consumers in this day and varying ages with their

busy schedules are not only interested with products that

are appetizing and ready for quick consumption but with

products that also address health and nutrition wellness.

For this reason, food innovation strategies can help in

SPUP School of Business Accountancy and Hospitality Management

sustaining business competitiveness and in meeting the

changing and complex customer demands and preferences.

Food innovation involves the design and development

of new food products, the improvement or combination of

existing food products, research into food trends and food

management (Google). In this light, the researchers though

of a product that can satisfy not only the palate of the

customers but also their required nutrients intake.

The proposed product, Veggienisa (vegan Longganisa),

is to introduce a new version of the ever famous Filipino

delicacy called Longganisa. Longganisa is a common

commodity in the Philippines and is usually served at

breakfast, with almost each region having their own

specialty. Longganisa is a long, pork sausage seasoned

known as “casings”. As the population becomes more aware

and conscious of what they eat, Veggienisa will be a

perfect food to meet the healthy diet of individuals

without sacrificing the flavor. Moreover, the product will

be offered at a just and reasonable price that would

greatly relate to its quality.

SPUP School of Business Accountancy and Hospitality Management

REVIEW OF RELATED LITERATURE AND STUDIES

According to Allen (2015), Longganisa traces its

roots to Spain, where Longganisa is a long, pork sausage

seasoned with paprika, cinnamon, aniseed, garlic and

vinegar. It is sold fresh and must be cooked. It’s not to

be confused with chorizo, which is mostly fermented,

smoked or cured, then sliced and eaten with no cooking

required, or added to flavor a variety of dishes.

In line with Ortiz (2012), at the height of the

Spanish empire, longaniza traveled far and wide — not just

to the Philippines but across the Americas, including

Puerto Rico, the Dominican Republic, El Salvador, Mexico,

Chile, Argentina and Uruguay. Over the course of several

centuries, the defining characteristics of the original

Spanish longaniza changed, with different interpretations

emerging from region to region, and from country to

Along with Wissmann (2014), the Filipino Longganisa

tradition appears to have emerged by way of Acapulco,

presumably around the time Juan de Salcedo, a Spanish

SPUP School of Business Accountancy and Hospitality Management

conquistador who was born and raised in Mexico, founded