Feasibility Study Abba

NORTHERN ILOILO POLYTECHNIC STATE COLLEGE
SCHOOL OF MANAGEMENT
ENTREPRENEURSHIP DEPARTMENT
Estancia, Iloilo
5-IN-1 HERBAL TEA
A Feasibility Study
Presented to the Faculty of the Entrepreneurship Department
Northern Iloilo Polytechnic State College
Estancia, Iloilo
In Partial Fulfilment of the Requirements for the Degree
Bachelor of Science in Entrepreneurship
By
JL A. Buaya
Jinky A. Calaor
Abegeil R. Espinosa
Rezel D. Fenis
Renelyn A. Rico
John Paul J. Villanueva
Abba Kid A. Villareal
March 2019
Estancia, Iloilo
PRODUCTION AND PROCESSING OF 5-IN-1 HERBAL TEA IN

THE MUNICIPALITY OF CARLES
A Feasibility Study
Presented to the Faculty of The Entrepreneurship Department
NORTHERN ILOILO POLYTHECNIC STATE COLLEGE
Estancia, Iloilo
In Partial Fulfilment of the Requirements for the Degree
BACHELOR OF SCIENCE IN ENTREPRENEURSHIP
By
JL A. Buaya
Jinky A. Calaor
Abegeil R. Espinosa
Rezel D. Fenis
Renelyn A. Rico
John Paul J. Villanueva
Abba Kid A. Villareal
March 2019
Estancia, Iloilo
APPROVAL SHEET
PRODUCTION AND PROCESSING OF 5-IN-1 HERBAL TEA IN

THE MUNICIPALITY OF CARLES
An Undergraduate Research Paper for the Degree Bachelor of

Science in Entrepreneurship
By
JL A. Buaya, Jinky A. Calaor, Abegeil R. Espinosa, Rezel D.
Fenis, Renelyn A. Rico, John Paul J. Villanueva, Abba Kid
A. Villareal
Approved by the Research Committee:

__________________________________
MICHELLE B. BACO, DPA - ADVISER
___________________________________
ARTHUR B. GUMARAC, MBA – PANEL CHAIRPERSON
__________________________________
MADELYN B. GUMARAC, MBA – PANEL MEMBER
__________________________________
MARK ANTHONY P. LOPEZ, MAT - PANEL MEMBER
__________________________________
RODERICK B. PILAPIL, MBM- CHAIRPERSON
BS ENTREPRENEURSHIP DEPARTMENT
___________________________________
JOMARTIN C. LIMSON, DPA
DEAN, SCHOOL OF MANAGEMENT

Estancia, Iloilo
ACKNOWLEDGEMENT
First and foremost, the proponents, JL A. Buaya, Jinky
A. Calaor, Abegeil R. Espinosa, Rezel D. Fenis, Renelyn A.
Rico, John Paul J. Villanueva and Abba Kid A. Villareal,
humbly submitted themselves to the GOD praises and glory
for guiding her throughout the long process of this
project study and giving she needed enough wisdom,
spiritual and physical strength for her project study.
Also, he extends her sincere an deep thanks to the beloved
ALMITHTY GOD, for the heartfelt.
To their inspiration dearest family and loved ones who
have given them their unceasing moral, and financial to
support; and for being considerate and understanding in
their undertaking in school relative to their course
especially to the following worthy persons for this
contributions towards the realization, and success of their
project study where they spent most of their time of this
project study.
To the panel members for precious advice, for the
enhancement of this manuscript.

Estancia, Iloilo
To their beloved Nanays and Tatays, who have
sacrificed and deprived themselves of the pleasure have
enjoyed, just to gave proper education and be useful
individual in the future. And also they give financial
support for the success of this project study.
To their group friends, classmates who helped in
preparing the needed materials, for their entering effort
and unwavering support.

Estancia, Iloilo
DEDICATION
We dedicate this study to:
God Almighty our creator, our strong pillar, our
source of inspiration, wisdom, knowledge and understanding.
He has been the source of our strength throughout this
endeavour.
Our great parents, who never stop giving of themselves
in countless ways.
Our friends, who encourages and supports us.
To all the people in our lives, who touched our
hearts.
We dedicate this research.
The Proponents
Estancia, Iloilo
EXECUTIVE SUMMARY
Tea is very well-known as cleansing drinks that
replenishes and cleanses the body taking away the toxins
from our body that causes sickness and diseases. Most of
the Asian countries were drinking tea instead of coffee and
soft drinks because of its natural ingredients.
In this manner, the researchers developed the new
version of “taho” tea which is healthy and natural by
adding some of the natural ingredients or extenders like
malunggay, turmeric (kalawag), peppermint.
The study was formulated to analyse and investigate
the viability of the product in Northern Iloilo
specifically in Carles. This became the basis for putting
up a 5-in-1 Herbal Tea Production and Processing Center in
the area and conducted feasibility study for to determine
viability of the business.

Estancia, Iloilo
Table of Contents
Title Page
Approval Sheet
Acknowledgement
Dedication
Executive Summary
Table of Contents
Objectives
Description of the Proposed Project
CHAPTER I – Marketing Feasibility
Market Description
Vision Statement
Mission Statement
Goals and Objectives
Population Census of Carles
Age Distribution
Current Market Position
Market Share
Demand
Product
Place
Promotion Strategy
Price
SWOT Analysis
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Research
Strengths
Weaknesses
Opportunities
Threats
Key Issues
Key Opportunities
Competitor’s Analysis
Strengths
Weaknesses
Opportunities
Threats
Target Market
Positioning Statement
Branding Strategy
CHAPTER II – Management/Organizational Feasibility

Management Description
Duties and Responsibilities of Key Personnel
General Requirements
The Management
Types of Business Organizations, Name and Location
Timetable of the Proposed 5-in-1 Herbal Tea Processing
Center
Gantt Chart of the Project Timetable
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CHAPTER III – Production Feasibility
Description of the Production

Machines and Equipments
Process Flow Chart
CHAPTER IV – Financial Feasibility
Income Statement
Cash Flow Statement
Balance Sheet
Notes to Financial Statements
Return of Investment
Return of Equipment
Environmental Plan
Waste Disposal
Socio-Economic Contribution
Conclusions
Recommendations
Estancia, Iloilo
OBJECTIVES
The objective of the study was to determine the
feasibility of the production and processing of 5-in-1
Herbal Tea in the Municipality of Carles. Specifically,
this study would:
1. Determine the viability were the herbal tea processing
center can best stimulate its business purpose.
2. To develop the new version of herbal tea and the
importance of its health benefits to each individual.
DESCRIPTION OF THE PROPOSED PROJECT

Carles is located in the Northern most town of Iloilo.
It is located in the north-eastern tip of the triangular
shaped Panay Island. It is bounded on the north by
Jintotolo channel; on the northeast by the Visayan Sea. On
the west by Municipality of Pilar, Capiz; and in the south
by the Municipality of Balasan, Iloilo. It is 146 km away
from Iloilo City and 13 km. away from Balasan, Iloilo, the
nearest town to Carles. Almost half of the total land area
of Carles is classified under agricultural land.

Estancia, Iloilo
There were tea existing businesses in the municipality
but it is only homemade and ginger only that is why the
researchers were determined that the said tea product could
be innovated by adding some of the extenders and would be
marketable in the market.
The proposed project was to establish the first ever
herbal tea processing center to the municipality and
provide a healthy product in the consumers in affordable
price that is made of 100% natural ingredients.

Estancia, Iloilo
CHAPTER I
MARKETING FEASIBILITY
Below is the marketing feasibility that would position
5-in-1 Herbal Tea to compete and grow the business
instantly. The business would produce a positive outcome
and the aim is to gain profit. The goals and objectives of
the business would help to achieve its mission and vision.
Market Description/Product Offer

The Municipality of Carles is a 2nd
class municipality in the Province of Iloilo, Philippines.
Carles is the 7th wealthiest town in Iloilo (based on
income) in 2018, with an income total of P120,475,987
(2009). The agricultural produce of the town includes fish,
prawn, crab, rice, corn, sugar, cattle and poultry. Other
industries include bakeries, shell craft and wood
furniture. Home to the famous Gigantes Island, tourist
influx to the town has dramatically increased in the past
five years thus, increasing the buying capacity in the
town.
Estancia, Iloilo
Vision Statement
To provide a high quality herbal tea product in
Northern Iloilo.
Mission Statement
The 5-in-1 Herbal Tea Processing Center will produce a
healthy and affordable tea for all.
Goals and Objectives

 To be able to offer affordable quality product.
 To promote healthy living.

Estancia, Iloilo
Population Census of Carles
Census Census Census

Census
Name Status 2000-05- 2010-05- 2015-08-
1990-05-
01 01 01
01
Carles 42,648 53,404 62,690 68,160
Area: 103 km² – Density: 659.9/km² [2015] – Change:

+1.61%/year [2010 → 2015]
Carles: municipality of the Philippines in the

province of Iloilo – Inception: 1862 – Official
Website – Local dialing code: 33 – Postal code: 5019
Visaya Island 13,041,9 15,528,34 18,003,94 19,373,4

s Group 47 6 0 31
Source: National Statistics Office of the Philippines

(web), National Statistical Coordination Board (web).
Explanation: Area figures are computed by using
geospatial data.
The continuous increase in the population of Carles and the increasing number
of tourist visiting the Island of Gigantes is a great market opportunity.

Estancia, Iloilo
Current Market Position

Research
Based on research, tea might remain secondary to
coffee in overall hot drinks, but it would continue to grow
its own market. Its forecast growth remains minimal but
positive, likely to be driven by slowly increasing
awareness of brands. While positive, growth rates are on a

Estancia, Iloilo
slow decrease as a demand for tea in the country remains
limited. (tea.com, 2017)
The 5-in-1 Herbal Tea Processing Center provides
healthy product in the community and nearby towns. It is a
pioneer tea processing center in the municipality. This tea
was developed through infused herbal contents to make it a
healthy drink. This would give the product a competitive
edge from other commercial teas, coffees, soft drinks and
other existing similar drinks in the market. The product
is more beneficial than coffee and soft drinks because of
its health benefits that is present in the ingredients of
the product. The 5-in-1 Herbal Tea Processing Center would
cater to the demand of tea lovers in the town of Carles and
nearby town, but would later work on getting target
customers that used to be softdrinks and coffee drinkers.
Market Share/Base on Market Research

Estancia, Iloilo
Percentage of population that takes the

different products in the Municipality of
Carles
28% Coffees
43% 5-in-1 tea

Softdrinks
4% Others
Other teas
15%
10%
The figure is based on the projected consumer’s
purchased and sales of drinks yearly. Approximately 10% of
the population is assumed to buy the product. This
assumption was based on the market research conducted
wherein 10 out of 100 respondents prefer to buy our product
after tasting it.
per Capita Consumption (in

Year Population bottle) Estimated Demand (in bottle)
2018 7,144 8 57,152
2019 7858 8 62,864
2020 8644 8 69,152
Estimated demand for the 5-in-1 Herbal tea
The table showed the estimated demand of 5-in-1 Herbal
Tea for the year 2018-2020. The computed estimated demand

Estancia, Iloilo
was derived from multiplying the 10% of a total population
various 0-9 years old that consummate the tea with the per
capita consumption of 5-in-1 Herbal Tea. The table also
showed the projected population that might consume the
product based on the 2015 census. The data was computed
using straight line method which gives the smallest
standard deviation.
Though the market is competitive in nature, the
information from the estimated projections was reliable
that there would be a greater increase in demand in
consumption of tea, if there would be more suppliers.
Considering the increase in population, it was obvious that
the demand would be increasing on a daily basis.
Product
This developed 5-in-1 Herbal Tea product is the new
version of “taho” tea infused with natural ingredients like
turmeric, malunggay, peppermint, and sugar. This product is
considered healthy but affordable, and can be consumed by
majority of the population (ages 9 and above).
Distribution Strategy
Estancia, Iloilo
Figure one shows the distribution channel of the
product. From the manufacturer, wholesaler and retailer can
buy directly from the store without minimum order.
Manufacturer
Wholesaler Retailer
consumer
Figure 1: Channel of Distribution
Promotion Strategy
The name of the business is 5-in-1 Herbal Tea
Processing Center and it would be located at Brgy.
Poblacion, Carles, Iloilo. The promotional strategies to be
used were the following: Fliers, Tarpaulin and Social
Media (Facebook)
Fliers. would distribute this to the costumers, for
their information about the product. The attached
information would be the name of the business, the name of
the product, the healthy benefits of the product, location
of the business and cellphone/contact number.

Estancia, Iloilo
Tarpaulins. would be posted in strategic areas besides
the highways of the Municipality of Carles as well as in
nearby municipalities to target more costumers. Same
information on fliers would be listed in the tarpaulin also
the name of the business, the name of the product, healthy
benefits of the product location and cellphone/contact
number.
Social Media Account. to promote the business through
online such as facebook, instagram and twitter. Accounts
would be made and the information needed of costumers would
be listed here. This promotion strategy helped to expand
awareness of the business and reached more target markets.
Price
Items Company’s Competitor’s Market
Price price selling price
5-in-1 Herbal P50/355 gms. P50/355 gms. P50/355 gms.
Tea
SWOT Analysis
Strengths
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• The proponents are graduate of 4-year business
course
• First ever herbal tea processing center in the
municipality
• Strategically located in public market
• The first one to register as a legal business of
Herbal Tea Processing Center
• 100% natural ingredients
• Environment friendly processes of operation and
production Great taste tea that is love by 9 and above
ages
Weaknesses
• Limited business space
• Limited source of capital
Opportunities
• Growing population of the municipality and nearby
towns
• Increasing tourists/travellers in the
municipality
• Increasing number of establishments in the
municipality
• Steady growth in tea consumption

Estancia, Iloilo
Threats
• Competitors that will offer same product
• Natural calamities that may affect the supply of
key ingredients
Key Issues
As shown in the SWOT Analysis considering the factors
that may affect the business in both internal and external,
the following were the areas of concern for the 5-in-1
Herbal Tea Processing Center.
• Business competition would occur
• Most of the people prefers coffee and soft drinks
Key Opportunities
1. As the mission statement goes 5-in-1 Herbal Tea
Processing Center produce a high quality tea that
is suitable to the taste of everyone, the product
would offer a healthy alternatives over coffee
and soft drinks.
2. The business would ensure to provide product that
is clean, good quality, and in standard with the
industry.
Estancia, Iloilo
3. The business would use the social media platform
as an advantage edge to promote the product and
reach larger market. Online orders would also be
considered.
Competitors Analysis
The main competitors of the 5-in-1 Herbal Tea
Processing Center were the business who sells different
variant of coffees and soft drinks that most of the people
prefer. The others were the retail store owners who sell
different kinds of tea from other places. The following
were the competitor’s strength, weaknesses, opportunities
and threats vs 5-in-1 Herbal Tea
Strengths
• People were proven to love soft drinks and coffee
• Established business for the long time
• Suppliers were business tycoons
• High production capacity
Weaknesses
• The Herbal Tea Processing Center that newly
established in the Municipality offer a product that
contains healthy benefits

Estancia, Iloilo
Opportunities
• Same through with the 5-in-1 Herbal Tea Processing
Center, the growing population also served as competitors
opportunity
Threats
• 5-in-1 Herbal Tea would serve as a "pasalubong"
for the tourist and for by passers.
• Increasing price of coffees and soft drinks.
Target Market
The target market of the business would be the people
of the Municipality of Carles, the nearby municipalities,
tourists and transients.
Positioning Statement
“True beauTEA is being healTEA”.
Branding Strategy
The 5-in-1 Herbal Tea Processing Center's branding
strategy was the healthy and catchy business name. The
business name would be placed to the personnel's uniform
and also the tagline “True beauTEA is being healTEA” for

Estancia, Iloilo
the costumer to easily recall the name of the product and
its healthy benefits.
Another Strategy was the assurance of the public that
the business was following its mission, to serve the
community with good quality healthy product in an
affordable price.
CHAPTER II
MANAGEMENT AND ORGANIZATIONAL FEASIBILITY
Management Description
The business would be run by the owner with 4 (four)
additional staff to help in the production including the
daily conduct of business activities and operations.

Estancia, Iloilo
Duties and Responsibilities of Key Personnel
The following were the duties and responsibilities of
the key personnel:
Owner/Manager. The proprietor is the owner of the 5-
in-1 Herbal tea. He is the decision maker of the business.
Directs and coordinates activities of the business.
Contacts suppliers and buyers to arrange for purchasing and
or harvesting and delivery of raw materials to the
production establishment for processing. Directs, through
subordinate/workers engaged in processing. Directs and
coordinates activities concerned with dismantling, moving,
installing, or repairing of machines and equipment.
Approves payroll and payments for purchased materials or
products.
Production Crew. There are two (2) crew involves in the
production of the product. Handles activities that involve
in the production like handling machines, making the
ingredients clean and sanitary free. Cleans the production
area after the day ends.

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Salesman/Delivery Crew. There is one (1)
salesman/delivery crew to counts, weighs, or tallies
processed items according to specifications. Receive record
and delivers the product if there is a delivery to market
vendors, customers and end consumers. Makes sure that the
product is completely and safely transported. Also
responsible for loading, unloading, preparing, cleaning,
and operating a vehicle for delivery duties. And also
receive payments from clients once they deliver products.
Submits payment to the manager/proprietor.
Cashier. There is one (1) cashier to calculate and
inventory the sales.
General Requirements
The following were the requirements that all hired
employee must meet:
• Must be of legal age, preferably 18-35 years old,
upon application
• With good moral and pleasing personality.
• With good health/medical condition as indicated
in his/her medical certificate.

Estancia, Iloilo
• Can work under pressure and without supervision.
Other Requirements
• At least high school graduate but preferably
college level.
• Good communication skills.
• Good in routine work and can do multi-tasking
since the work requires physical mobility and
movements.
• Excellent customer service
• Have at least basic knowledge in Tea production
and processing
The employee will further submit the following
requirements to ensure the safety of the business,
proprietor’s interest, customers and the community it
serves.
• Barangay clearance and barangay residence
certificate
• Police clearance
• Medical/health certificate
Estancia, Iloilo
The Management
In the case of management, the business would be most
likely in good hands since it would be manage by the owner.
The owner/ proprietor is a graduate of a business course, a
Bachelor of Science in Entrepreneurship that has reared
him/her to be an entrepreneur equipped with knowledge in
management, customer service, production and marketing. A
good leader that always listens to the suggestions of his
staff.
Figure 2
cashier
cleanup crew
Owner/Manager
drying and
packaging crew
salesman/delivery
crew
Estancia, Iloilo
Management Organizational Structure
Types of Business Organization, Name and Location
The proposed 5-In-1 Herbal Tea Processing Center is a
private sole proprietorship form of business. The business
structure was simple and would require simple management.
The proponent decided on single proprietorship for personal
and practical reasons. One reason is that it is easy to
organize; and second, the owner is the authority and
decision maker. Assuming there would be profits, the
proponents would get the chance to keep all the profits.
And lastly, on the basis of tax, the sole proprietor would
pay tax base on its personal income earned from the
business.
The business would be located at Brgy. Poblacion,
Carles, Iloilo. A good location for the business that is
suitable for marketing product.

Estancia, Iloilo
Time Table of the Proposed 5-in-1 Herbal Tea Processing
Center
The table showed the schedule of activities the
project had undergone and would undergo in the months to
come:
Activities Objectives Period Persons

Involved
Project site To set up the 3 Manager and

preparation facility layout weeks Carpenters
Purchase of To procure 1 week Manager and

machines, equipment needed hired staffs
facilities, by the business
fixtures and center
equipment
Hiring and To screen, 1 Owner/manager
training of select and train month
personnel qualified
personnel
Marketing and To promote the 1 Manager and
promotion opening of the month hired staffs
business center
Preparations for To start the 3 days Manager and

opening operation with a hired staffs
grand opening
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Gantt chart of the Project Timetable
Activities Month Month Month Month
1 2 3 4
Project site
preparation
Purchase of
machines,
facilities,
fixtures and
equipment
Hiring and
training of
promotion
Marketing
and
promotion
Preparations
for opening
Estancia, Iloilo
CHAPTER III
PRODUCTION/TECHNICAL FEASIBILITY
Description of the Production
The 5-in-1 Herbal Tea would process in a clean
production area. Standard protocol would be followed to
ensure clean and sanitized environment.
Machines and Equipments
Grinder. used to grind the raw
materials like ginger, turmeric,
malunggay and peppermint. Two pieces
is needed in production and it
cost P3 000 each.

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Basin. used in mixing the
product before it would be put
on the plastic container.
There would be three 3 pieces
of basin that cost P150 each.
Knife. used to cut the raw
materials. 5 pieces would cost
P80 each.
Spoon. used in mixing the product in
the basin. 1 dozen cost P70.

Estancia, Iloilo
Table. used in the
production. 5 pieces were
needed. It costs P600 each.
Chairs. the 8 pieces of chairs will
be provided to the personnel who are
involved in the production. It cost P180
each.
Desktop/Computer. used to
encode the financial reports,
financial statements etc., of the
business. It cost P24,000.

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Measuring Cups. used for
measuring the ingredients. The 4
measuring cups costs P120 each.
Calculator. used for daily
transactions involves simple
arithmetic. It costs P120.
Plastic Bottles. used as the
packaging of the product each
bottle costs P6 in wholesale price

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Process Flow Chart
Cleaning
Outside
Drying Area
Peeling,
Cutting and
Segregating
Grinding
Mixing
Packaging
Delivery
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CHAPTER IV
FINANCIAL STATEMENT
Income Statement
5-IN-1 HERBAL TEA

INCOME STATEMENT
2018 2019 2020
Gross Sales 2263119.84 2447606.70 2680454.70
Less: COGS 1810495.80 1958085.36 2144363.76
Gross Income 452624.04 489521.34 536090.94
Less: mktg. and adm.
Exp
Mktg. Exp. 21000.00 23100.00 25440.00
Admin. Exp. 264034.00 274819.14 286178.18
Total mktg. and adm.
Exp 285034.00 297919.14 311618.18
Income before tax 167590.04 191602.20 224472.76
Less: Income tax 0.00 0.00 0
Net Income 167590.04 191602.20 224472.76
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Cash Flow Statement
5-IN-1 HERBAL TEA

CASH FLOW STATEMENT
2018.00 2019.00 2020.00
Net Income 167590.00 191602.20 224472.76
Add: Depreciation 48735.00 48735.00 48735.00
Less: A/R
Inv.
total cash from operation 216325.00 240337.00 273208.00
cash flow from investing
purchased fixed asset -209200.00
total cash from investing
cash flow from financing
investment of the owner 300000.00
total cash from financing
cash equivalent 307125.00 240337.00 273208.00
Add: Cash beginning 307125.00 547461.00
Cash Balance 307125.00 547461.00 820668.00
Estancia, Iloilo
Statement of Financial Position
5-IN-1 HERBAL TEA

Statement of Financial Position
2018 2019 2020
Cash 307125.00 547461.00 820668.00
A/R
Inventory
Total 307124.00 547460.88 820667.98
property, plant and
equipment 209200.00 160465.00 111731.00
Less: Depreciation 48735.00 48735.00 48735.00
Total 160465.00 160465.00 160465.00
Total Assets 467589.00 707926.00 981133.00
Liabilities and Owners Equity
Liabilities
Owners Equity 467589.00 707926.00 981133.00
Total Liabilities and
Owners Equity 467589.00 707926.00 981133.00
Estancia, Iloilo
Notes to Financial Statements
5-IN-1 HERBAL PROCESSING CENTER

ESTIMATED INVESTED COST
Particulars Quantity Cost/Unit Total Cost

Assets
Grinder 2 3,000 6,000
Basin 3 150 450
Knife 5 80 400
Spoon 1 doz. 70 70
Tables 5 600 3,000
Chairs 8 180 1440
Measuring Cups 4 120 480
Calculator 1 120 120
Other Office Supplies 20 12 240
Fixed Assets
Computer 1 24,000 24,000
Land 1 63,000 63,000
Building 1 56,000 56,000
Motorcycle 1 54,000 54,000
Total Fixed Asset 209,200

Estancia, Iloilo
Direct
Materials
average
Particulars g./bottle price/kg. price/day x22days x12mos
Ginger 250g. P30 1,597.50 35,145.00 421,740.00
Turmeric 100g. P100 2,130 46,860.00 562,320.00
Malunggay 250g. P25 1,331.25 29,287.50 351,450.00
Peppermint 10g. P150 319.5 7,029.00 84,348.00
Sugar 10g. P50 106.5 2,343.00 28,116.00
Plastic 213
Bottle Bottles P6 1,278 28,116.00 337,392.00
Total
Direct Cost 148,780.50 1,785,366
5-IN-1 HERBAL TEA PROCESSING CENTER

TOTAL PROJECT COST
Particulars no. of units price/piece total

Fixed Asstes
Fur. And Fix.
Grinders 2 3,000 6,000
Basins 3 150 450
Knives 5 80 400
Spoons 1 doz. 70 70
Tables 5 600 3,000
Chairs 8 180 1,440
Measuring Cups 4 120 480
Calculator 1 120 120
Office Supplies 20 12 240
total fur.@ fix. 12,200
Land 1 63,000 63,000

Building 1 56,000 56,000
Estancia, Iloilo
Motorcycle 1 54,000 54,000

Computer 1 24,000 24,000
Total fixed assets 209,200
Raw Materials
Ginger 1,597
Turmeric 2,130
Malunggay 1,331.25
Peppermint 319.50
Sugar 106.50
Plastic Bottles 1,278
Total Raw Materials 6,762.25
total
packaging Material 22.72 500
Water Bill 34.09 750
Salaries and Wages 2 382 16,808
Electric Bill 36.36 800
Total 18,858.0
units monthly
Utility 166.67 166.67
Promotional Exp. 3,000
Org. Exp. 3,605
Total 6,772
Total Project Cost 241,591.92

Estancia, Iloilo
5-IN-1 HERBAL TEA PROCESSING CENTER

PROJECTED SALES
Particulars monthly 2018 2019 2020
Raw Materials 148780.50 1785336.00 1963869.60 2160256.56

Total 148780.50 1785336.00 1963869.60 2160256.56
Packaging 500.00 6000.00 6600.00 7260.00

Water Bill 750.00 9000.00 9900.00 10890.00
Electric Bill 800.00 9600.00 10560.00 11616.00
Salaries and
Wages 16808.00 201696.00 211780.80 222369.84
total 18858.00 226296.00 238840.80 252135.84
Total Finished
Goods 167638.50 2011632.00 2175650.40 2382626.40
Total Cost +25%
mark-up 209548.13 2514577.56 2719563.00 2978283.00
Projected Sales 188593.32 2263119.84 2447606.70 2680454.70
Cost of Good Sold 150874.65 1810495.80 1958085.36 2144363.76
Estancia, Iloilo
Marketing Expense
2018 2019 2020
Particulars Unit
Bad depts. 3,000 3,300 3,630
Gasoline 1,250/mos 15,000 16,500 18,180
Repair and
Maintenance 250/mos 3,000 3,300 3,630
total marketing
Expense 21,000 23,100.00 25,440.00
Estancia, Iloilo
Administrative
Expense
2018 2019 2020

Salary/
Particulars Unit Employe Monthly@22days
Salary 16,80 211,7 222,36
Expense 2 382 8 201,696 80.80 9.84
166.6
Utility 7 2,000 2,200 2,420
416.6
Tel.and Com. 7 5,000 5,500 6,050
Promotional
Exp. 3,605 3,605 3,605
Org. Exp. 3,000 3,000 3,000
18,666.6 18,66 18,666
Dep. Exp. Building 7 6.67 .67
Dep. Exp. 18,00
Motorcycle 18,000 0 18,000
Dep. Exp. Computer 8,000 8,000 8,000
Dep. Exp. Fur. And 4,066 4,066.
Fix. 4,066.67 .67 67
274,8 286,17
Total Admin. Exp. 264,034 19.14 8.18
Estancia, Iloilo
Administrative Expense
Permit and licenses 1000

Brgy. clearance 75
Community tax cert. 500
Mayor's permit 500
Sanitary permit 150
BIR 900
DTI 120
police clearance 150
BFAD and DOH cert 160
Fire clearance 50
Total 3605
Return on Investment
profit
ROI = investment
167590.04
= 300000
= 0.558634667 x 100
= 56%
Cash invested in assets contributed 56% of the income.

Estancia, Iloilo
Return of Equity
total asset
ROE = investment
209,200
= 300000
= 0.6973333333 x 100
= 70%
This means that 70% of the money invested is earned in the
first year of operation. This implied that in two years
time the invested money will be earned.

Estancia, Iloilo
ENVIRONMENTAL PLAN
Waste Disposal
Nowadays, people were trying to overcome the problem
about waste disposal. The 5-In-1 Herbal Tea Processing
Center would follow the separation of waste in terms of
biodegradable and non-biodegradable. This could be a safe
way of waste management to avoid foul smell and a dirty
environment. All of the biodegradable waste would be put on
to the plants directly so that it would serve as
fertilizers.
Socio-Economic Contribution
Tea production would provide income to resident by
offering wholesale price to qualified resellers while in
agriculture provides an income for workers in rural areas,
selling of healthy tea could increase their household
income. The product was also a healthy alternative to
coffee and soft drinks thus promoting a healthy lifestyle
among the residents.

Estancia, Iloilo
Tax paid by the proposed 5-In-1 Herbal Tea Processing
Center would be one contribution. The shares that
municipality would get from the tax that the center would
pay to the government would upgrade the standard of living
of the people in the community, families and other
individuals. The small and high tea dealers in Carles could
be able to boost their income and spread their products. It
could help the municipality to be known as the first to
have herbal tea processing center. The 5-in-1 herbal tea
could be an additional supply of products in the market due
to the new innovation that the center would produce and
could also be an additional option that could satisfy
customers because of its healthy benefits, quality products
and cheaper price.

Estancia, Iloilo
Conclusions
After the study was conducted, the following
conclusions were derived:
1. The product has a great potential in the market
because of its health benefits.
2. The product could compete with coffees, soft drinks,
and other teas in the Municipality of Carles.
3. Even low income individual could afford the said
product.
4. The business would be visible in the market as what
have seen in the marketing feasibility, organizational
feasibility, production feasibility and financial
feasibility. Therefore the study revealed that the project
was feasible/viable.
Estancia, Iloilo
Recommendations
After the conclusions were derived, the following
recommendations were recommended:
1.The proponent suggested the urgent implementation of the
proposed business.
2. Since the locales of Carles were interested in the
processing and production, seminars and training were highly
recommended, therefore suggesting the support of the LGU or
Baranggay Officials. This would provide livelihood for
farmers and other households in the Municipality of Carles as
suppliers of ingredients and also providers of the product as
well.
3. Further studies were highly recommended for the innovation
and betterment of the product.

Feasibility Study Abba

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NORTHERN ILOILO POLYTECHNIC STATE COLLEGE

5-IN-1 HERBAL TEA

Presented to the Faculty of the Entrepreneurship Department

Northern Iloilo Polytechnic State College

In Partial Fulfilment of the Requirements for the Degree

Bachelor of Science in Entrepreneurship

PRODUCTION AND PROCESSING OF 5-IN-1 HERBAL TEA IN

Presented to the Faculty of The Entrepreneurship Department

NORTHERN ILOILO POLYTHECNIC STATE COLLEGE

In Partial Fulfilment of the Requirements for the Degree

BACHELOR OF SCIENCE IN ENTREPRENEURSHIP

PRODUCTION AND PROCESSING OF 5-IN-1 HERBAL TEA IN

An Undergraduate Research Paper for the Degree Bachelor of

Approved by the Research Committee:

DEAN, SCHOOL OF MANAGEMENT

First and foremost, the proponents, JL A. Buaya, Jinky

A. Calaor, Abegeil R. Espinosa, Rezel D. Fenis, Renelyn A.

Rico, John Paul J. Villanueva and Abba Kid A. Villareal,

humbly submitted themselves to the GOD praises and glory

for guiding her throughout the long process of this

project study and giving she needed enough wisdom,

spiritual and physical strength for her project study.

Also, he extends her sincere an deep thanks to the beloved

ALMITHTY GOD, for the heartfelt.

To their inspiration dearest family and loved ones who

have given them their unceasing moral, and financial to

support; and for being considerate and understanding in

their undertaking in school relative to their course

especially to the following worthy persons for this

contributions towards the realization, and success of their

project study where they spent most of their time of this

To the panel members for precious advice, for the

enhancement of this manuscript.

sacrificed and deprived themselves of the pleasure have

enjoyed, just to gave proper education and be useful

individual in the future. And also they give financial

support for the success of this project study.

To their group friends, classmates who helped in

preparing the needed materials, for their entering effort

and unwavering support.

We dedicate this study to:

God Almighty our creator, our strong pillar, our

source of inspiration, wisdom, knowledge and understanding.

He has been the source of our strength throughout this

Our great parents, who never stop giving of themselves

Our friends, who encourages and supports us.

To all the people in our lives, who touched our

We dedicate this research.

replenishes and cleanses the body taking away the toxins

from our body that causes sickness and diseases. Most of

the Asian countries were drinking tea instead of coffee and

soft drinks because of its natural ingredients.

In this manner, the researchers developed the new

version of “taho” tea which is healthy and natural by

adding some of the natural ingredients or extenders like

malunggay, turmeric (kalawag), peppermint.

The study was formulated to analyse and investigate

the viability of the product in Northern Iloilo

specifically in Carles. This became the basis for putting

up a 5-in-1 Herbal Tea Production and Processing Center in

the area and conducted feasibility study for to determine

viability of the business.