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Section 1

MARKET STUDY

This section presents the product description, historical data, demand

analysis, supply analysis projected supply demand and supply analysis and price

study. It also discusses the marketing program, costing and promotion.

Product Description

Banana and bread are just one of the most commonly foods that patronize

in the Philippines. Banana is one of the most common and widely grown fruit

crops, and bread especially Pan De Sal as one of Filipino’s favourite food during

breakfast, and snacks.

In the recent years, demand for bread is continually increasing due to

factors which include convenience affordability and changing lifestyle. The trend

of health and wellness shift the demand to go upward because a lot of people

choose to go to healthy lifestyle. The proponents want to introduce a new product

with a potential commercial value in the local market which is the Batagdesal, a

bread with a flavour of fresh and ripe banana. It is envisioned of putting up stores

focused of using banana as flavour in the famous Pan De Sal and create various

types of bread and to contribute to the food industry in much broader and in turn

will array as one of the most excellent food products.

This product take into consideration all types of people of all ages, what

places they came from, gender and religion or with high or low income can be the

target market and potential buyers or potential customers, the proponents extend

their time and effort to differentiate and understand the needs, wants and their
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preferences in order to meet the satisfaction of the innovated product. Ages 6

years old and above is the target market of Batagdesal, professional or not, male

or female and people of different walks of life.

Batagdesal wants to show the purchasing influence most of the residents

of Barangay 3 Em’s Barrio, Legazpi City as it is offering an affordable price and

addressing health and wellness trends in our product offerings.

Table 1

HISTORICAL DATA

YEAR POPULATION

2014 654

2015 708

2016 759

2017 856

Source: Records of Brgy. 3, EM’s Barrio

Table 1 shows the historical population in Barangay 3 Em’s Barrio,

Legazpi City. Barangay secretary of the said barangay provided the data of the

population from year 2014 to year 2017 where in year 2014, the population in the

place is 654; in 2015 the population increased to 708; in 2016 it raised to 759;

and in year 2017 raised to 856. It shows that the annual increase of population is

68 using the arithmetic straight line method.

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Demand Analysis

The target market of this proposed product will are the residents of

Barangay 3 Em’s Barrio, Legazpi City as it is located in the strategic and highly

accessible place.

Table 2

DEMAND ANALYSIS

WILLINGNESS
YEAR POPULATION FREQUENCY DEMAND
TO BUY (91%)

2019 992 903 144 130,032

2020 1,060 965 144 138,816

2021 1,128 1,027 144 147,888

Table 2 shows the total projected demand for the proposed business,

Batagdesal for 2019 up to 2021. From the results of the survey conducted by the

proponents, it reveals that out of one hundred eighty (180) respondents, one

hundred seventy two (172) are willing to patronize the proposed business. It

shows that the frequency is 3x a week. To get the frequency, it is multiplied by

four (4) (four weeks in a month), and multiplied it to twelve (12) equivalent to 12

months per year which is equivalent to 144.

To get the projected demand, the formula use is; population multiplied by

the willingness of buyer and frequency.

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Supply Analysis

The proponents gathered the data from the competitor’s bakery that exist

in the location of the proposed business to get the supply analysis.

Table 3

COMPETITOR’S CUSTOMERS (2018)

COMPETITOR Daily Yearly

Claire’s Bakeshop 150 54,000

The table shows the historical supply of bread in EM’S Barrio based from

interview to the owner of Claire’s Bakery in year 2018. The yearly supplies were

computed by multiplying the daily production multiplied by 30 days and multiplied

by twelve 12 months per year.

Table 4

PROJECTED SUPPLY

COMPETITOR 2019 2020 2021

Claire’s Bakeshop 78,480 102,960 127,440

Table 4 shows the projected supply of bread in EM’S Barrio from 2019 to

2021.
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Demand and Supply Analysis

Table 5

DEMAND AND SUPPLY GAP

YEAR DEMAND SUPPLY GAP

2019 130,032 78,480 51,552

2020 138,816 102,960 35,856

2021 147,888 127,440 20,448

The table shows the comparison of the demand and supply trends of the

projected demand and supply gap from year 2019 to 2021. It also shows the

determined unsatisfied or the gap. The result under gap was obtained by

subtracting supply from demand.

Price Study

The price of the Batagdesal will depend on the price of the ingredients. If

in case of the price change of the banana bread products, it will take into

consideration on the consumer’s capability to purchase the product.

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Table 6

SALES FORECAST

SELLING DAILY MONTHLY YEARLY

ITEM QTY
PRICE SALES SALES SALES

BATAGDESAL 200 P 12.00 P 2,400.00 P 72,000.00 P864,000.00

The table shows the projection of sales after taking into account of the

capacity of the business. The proponents came up with the selling price of Php

2.00 per piece multiplied by the number of product which is 200 pieces per day

resulting to Php2,400.00. For the monthly sales it was multiplied by 30 days

resulting to P 72,000.00. The projected sales forecast for one year is computed

by means of multiplying by twelve months arriving to the amount of

Php 864,000.00.

Marketing Program (4ps)

Product

Pandesal is a bread roll made of flour, yeast, sugar, and salt. It is the

common food item in the Philippines specifically during breakfast and snack.

Pandesal was originally started as a plain roll, traditionally served for breakfast

and accompanied by butter, cheese, and scrambled eggs. Pandesal vary in

different quality to meet the taste requirement and economic standards of various

communities. Some of bakeries producing pandesal tried different strategies to

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make their products different in taste and, texture and aroma to attract the

costumer. The proponents of this product want to promote a new product which

is the batagdesal, a bread with shredded banana. The business will employ

direct selling and can be delivered to regular costumer of “Batagdesal”.

Table 7

INGRIEDIENTS COSTING FOR 200 PCS PRODUCT PER DAY

Items Quantity Price Total Cost

Flour 12 Kg P 78.00 P 936.00
Sugar 2 Kg 25.00 50.00
Salt 250 grams 20.00 5.00
Yeast 250 grams 20.00 5.00
Lard 1 Kg 50.00 50.00
Skimmed Milk 1 Kg 75.00 75.00
Water 3 Liters 15.00 45.00
Squashed 8 Kg 25.00 200.00
Banana (for
filling)
Total Cost P 1,366.00
Source : Robinsons Supermarket, Old Albay, Legazpi City

The table shows the quantity, the unit cost and total cost of different

ingredients to be used for 200 pieces bread per day.

COSTING

Total Cost – P 1,366.00

Yields - 200

Cost per piece - P 6.83

Add: Mark – up - 5.17

Selling Price - P 12.00

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Packaging

Brown paper bags are the target materials for packaging; bakery will use

brown paper bags.

Place

The proposed location of batagdesal was shown in the figure below. Itis

located at Purok 7 Barangay 3Em’s Barrio, Legazpi City that will be very

accessibleto the prospective customers.The bakery covers the population of 1 st

to 7thPurok of Barangay 3 Em’s Barrio. It was negotiated that the place will be the

proponents’ house, and the cost of the renovation shall be shouldered by the

proponents. Rental fee is P 2,000.00 per month.

Proposed
Location

Promotion

To promote the product, signboards will be hang at the entrance road and

at the business location bearing the name of the bakery.

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Figure 1

BUSINESS LOGO

Figure 1 shows the proposed logo of the business showing the product

identity.

Table 8

PROMOTIONAL COST

ITEM QUANTITY UNIT COST TOTAL COST

Signboard 2 pc. Php 200.00 Php 400.00

Table 8 shows the promotional cost of the proposed business. Two

signboards costing 400 pesos.