The House of Nuts

A Feasibility Study
Presented to the Faculty of the

Yu An Log College of Business and Accountancy

University of St. La Salle

Bacolod City

In Partial Fulfilment

Of the Requirement for the Degree

Bachelor of Science in Business Administration

Major in Marketing Management,

Operation Management and Business Economics

Bico, Milrose Frances

Cordova, Camille
Pudadera, Bethany
Sayson, Chloe
Ysulan, Paolo

March 2020
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Chapter 1

INTRODUCTION

Background of the study

Bacolod City is recognized to be the sugar capital of the country. It is for this
reason that the city pays host to innumerable cafes and coffee shop who serve finest
cakes and pastries. They may have a supplier for the goods but the variety is limited and
most are not directly come from our local farmers. For the international nuts product the
https://nuts.com/ from Australia They are efficient, well priced, have the best selection of
any online site out there. The quality of your products and amazing compassionate
customer service

There is a wide variety of nuts that bring texture, crunch, and flavor to so many of
our favorite cookies, pastas, salads, pesto, and even fish, chicken and beef recipes. There
are types of nuts the first one is the pistachios, which have a darker shell and skin, and
are more flavorful. Hazelnuts, this round nut plays a big role in a beloved sweet spread
called nutella. Cashews, crescent shaped South American nut. Walnut, extremely popular
baking ingredient. Macarona almonds, rounder, flatter and sweeter than regular almonds.
Peanuts, is rich in high protein, raw peanuts possess a hearty earthiness that becomes
even more pronounced when they’re roasted. Almonds, have a mildly sweet flavor that is
magnifies in products such as almond extract and pecans, is ever sweeter than the walnut,
and thus used mainly in baking.

A nut is already a naturally compounded food, ready to be eaten with minimum

preparation (Lusas, 1979), by simple roasting and grinding process (Rhee, 1985). Nuts
were usually consumed less frequently, compared to other food items which were
consumed daily or almost regularly. Peanut oil is relatively unknown to Filipino
consumer while peanut butter is a favorite product, followed by fried, roasted, and boiled
peanut. (M. Shahbandeh, 2019) In 2018, the global consumption of peanuts amounted to
approximately 42.6million metric tons, making peanuts the most popular nut for
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consumption in the world. Almonds were the second most consumed type of nuts, with
11.9 million metric tons consumed that year.

The Pili Nut Farm is the only integrated and self-sustainable pili nut plantation in the
Philippines. Its development is in line with the growth pattern set by the provincial
government to emphasize high value, low density, and sustainable eco-tourism projects.
Investment opportunities, particularly in the pili nut industry, are severely limited in the
Philippines, since foreigners cannot own land. In considering Philippine investment,
Philagrivest therefore represents the ideal organic pili nut investment opportunity. The
organic pili nut industry is strongly supported by the Philippines government, and it is
particularly targeting foreigners to invest in the Philippines.

To help the farmers it is better to get direct supply from them and pay them
directly in the right amount and put it into the market for selling this business may not
only earn profit but also somehow improve the livelihood of the farmers.

The growing population of Bacolod City leads to a number of cafés and pastry
shop to arise in the food industry. The increasing demand for these establishments needs
to be met and so; the group has decided to offer a product that is unique and different
from other establishments.

In this study, the group will determine if retailing nuts on a business will be
feasible.
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Statement of the problem

This feasibility study is intended to evaluate the feasibility of putting up a nuts

retailing company in Bacolod City.

Specifically, it aims to achieve these following objectives:

1. What organizational structure is right for the business?

2. What are the essential equipments needed in putting up a House of Nuts business?

3. What will be the effective marketing strategy to the success of the business?

4. What are the sources of funds of the business?

5. What is the social-economic benefit to the local farmers?

Significance of the Study

This study is conducted to measure the feasibility of the House of Nuts business as a
proposed business to be put up in Bacolod City. This study deemed to be beneficial to
the following:

Investors. This will help the investors to have an idea and knowledge in the study.
This could be a business idea which they can allocate their capital with the expectation of
future financial return.

Farmers. The business can help the local farmers to enhance their markets and
importance of selling their products to the market. Farmers could tell how much income
they could garner if they start accepting business deals in the market. With these ideas it
would surely have a great impact on the industry they are in.

Nuts Industry. This study will help the nuts industry to promote their product and
as well as to let the people know about their products. This also provide additional access
for the product of the local farmers.

Researchers. This study will help the researchers to execute their knowledge in
marketing in terms of formulating strategy, they will have an effective way of
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showcasing what they have learned and come up with an output, in the form of doing a
research study that would benefit to others. Researchers may have skills to create
opportunities of the local farmers and to peanut industry in terms of supporting local and
meeting the demand of the consumer.

Future Researchers. This study would help the future researchers to be

knowledgeable about the nut industries in the Philippines. They can use the study as their
future reference.

Scope and Limitations

The purpose of this study is to help our local farmers patronize their products which
are the different variety of nuts.

The participants of this study would be at least 100 respondents and they are the
peanut vendors, bakers, and others who are buying nuts around Bacolod City. The survey
will be conducted on the month of January of the year 2020. Through this, the study will
be able to determine the market acceptance in this kind of business.

The study will be conducted on four months of 2019 November and it will end on
March 2020.
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Proposed Location

Figure 1: Vicinity map of the proposed location of the business.

The proposed location of House of Nuts is located at, The Shop house Heritage BS
Aquino Drive corner Narra Avenue, Narra Ext, Bacolod, 6100 Negros Occidental. The
business chose this location because a number of people pass this area and it is a very
convenient location to all buyers because it can be easily seen.
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Chapter 2

MANAGEMENT ASPECT

This chapter deals with the organization and it is in this aspect that the proponents
identify the key personnel in charge and rules of the business, projected contribution of
each personnel, form of ownership, organizational chart, projected scheduling and
perform job analysis.

Vision

To continuously deliver high quality nuts at an affordable price to fulfil the demands
and meet the expectations of our consumers and providing our employees a positive
work environment with equal opportunity for learning and personal growth

Mission

To be recognized as a trusted nut supplier in Bacolod City

Forms of Ownership

The type of business ownership will be a general partnership: in which the

partners should have a legal agreement that sets forth how decision will be made, profits
will be shared, skills, and other resources and expect to share in the profit and losses of
the business evenly. The business have agreed to have each partner contribute 400,000
pesos to the capital requirements of the business amounting to 2, 000, 000 pesos.

The business will be easy and organize and will operate more effectively and
efficiently since five people are present for sharing and strategies to achieve company’s
goals and objectives.
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Organizational Structure

Manager

Bookkeeper

Purchaser/Inventory
Cashier
Officer

Sales Crew (2)

Figure 2: Organizational Structure of the business

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Job Description and Qualification

Manager.
Reports to: Partners
Supervises: Bookkeeper, Cashier, Purchaser and Sales Crew

A manager is the leader of the business. She/he is responsible to supervise and lead a
company's operations and employees and he\she is also responsible of the day-to-day
productiveness and performance of the business. She/he will perform a range of tasks to
ensure company productivity and efficiency including implementing business strategies,
evaluating company performances, and supervising employees. His\Her presence is
required on a daily basis since he is to provide reports and activity updates to the
owner/management. And the ones who provides information and answering employee
questions about payroll related matters

Job Specifications:

 Bachelor’s degree in Business, Business Management or other related fields.

 At least 1 year experience in a management position.
 Outstanding leadership abilities.
 Excellent written and verbal communication skills.
 Working knowledge of the latest business policies and regulations.
 Able to prioritize and multitask effectively.

Bookkeeper.
Reports to: Manager
Supervises: none

The bookkeeper provides a variety of bookkeeping and accounting functions including

payroll for staff and clients, bank deposits & reconciliations, accounts payable and other
client payments. She/he maintains bookkeeping files and provides back-up Finance
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Team Leader Support. And she/he should report financial statement to the owner every
end of the month.

Job Specifications:

 Will be out hired from a reputable accounting firm.

Purchaser.

Reports to: Manager

Supervises: none
Purchaser is the one who research potential vendors and they compare and evaluate
offers from suppliers. He/she negotiate contract terms of agreement and pricing, track
orders and ensure timely delivery, review quality of purchased products, maintain
updated records of purchased products, delivery information and invoices, prepare
reports on purchases, including cost analysis. The purchaser is also responsible to
monitor stock levels and place orders as needed. He/she will also coordinate with
warehouse staff to ensure proper storage.

Job Specifications:

•Bachelor’s degree in business, accounting, supply chain management, or a related field

•2+ years of experience in a purchasing role

•Certification is preferred, but not required

•Extensive knowledge of products

•Strong communication, negotiation, and persuasion skills

•Analytical and mathematical capabilities to compare prices and quantities and consider
vendor contract terms

•Ability to evaluate market conditions and various suppliers

•Keen eye for detail

•Willingness to make quick and thoughtful decisions on behalf of the business

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Cashier

Reports to: Manager and Bookkeeper

Supervises: Sales crew and Purchaser
Receive payment by cash, check, credit cards, vouchers, or automatic debits. Issue
receipts, refunds, credits, or change due to customers. Count money in cash drawers at
the beginning of shifts to ensure that amounts are correct and that there is adequate
change.

Job Specifications:

 The minimum requirement to be a Cashier is a high school diploma or any four-

year course, or one to three months related experience and/or training. Any
equivalent combination of education and experience

Sales Crew.

Reports to: Manager

Supervises: none

Sales Crew serve as customer-facing staff that help customers with purchases from start
to finish and answer any questions about store policies and products. They share their
knowledge with customers to help them find the products that meet their needs,
providing instruction on using products and checking customers out when they are
finished shopping, assisting customers with exchanges and returns and they also often do
some of the duty of shelf-stockers during their shifts.

Job Specifications:

 High school diploma or at least 2 years in college.

 With or without experience.
 Excellent communication and organizational skills
 Willingness to work evenings and Saturdays as needed.
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Personnel Management Polices

1. Business opens every Monday to Saturday at 8:30 AM and closes at 5 PM.

2. Lunch break starts at 12 noon to 1:00 PM and the store will be closed

3. Employees must wear their proper uniform and always maintain their hygiene.

4. Employees are allowed to use their phones during break hours, emergencies, or there
is limited work.

5. Employees must clean the workplace before it opens and after it closes.

6. Employees must deal with the customers with respect and in a polite manner.

7. All lost and found items must be suspend to the manager.

8. Each employees should render at least 8 hours of the duty daily.

9. Tips from the customer must be placed on the tip box and must be divided after
work.

10. Salaries will be given on the starting date of your work and every 15 days.

Management Control Policies

1. Warning

The employee will be warned due to his or her behaviour inside the workplace
and that such violation may not be continue. This also serves as his or her first offense.

2. Suspension

If the employee is late three times within one month, he or she will be suspended.
Number of day’s suspension depends on the number of minutes he or she committed.
Loss of work and wages for a specific number of days, but not for more than one work
week. Notice of suspension is provided to the employee in writing.
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3. Advised to resign

Excessive absenteeism, tardiness, and quitting work before proper time will lead you
to advise to resign.

4. Termination

If the employee receives at least three warning notices for the same offense
within a period of 12 consecutive months, on his or her fourth notice, he or she will be
terminated in the workplace. Dishonesty of the employee is also one of it.
 13

Compensation Table

Position Employee Fixed Annua Social Phil Pag- Net

Number Salar l Securit Health ibig Salary
y Salary y
System
(SSS)
Manager 1 19,20 230,40 2,310.0 618.76 768 226,703.2
0 0 0 4
Bookkeep 1 1,500 230,40
er 0
Cashier 1 7,000 110,88 1,090.0 375.00 369.6 109,045.4
0 0 0
Sales 2 9,240 110,88 1,090.0 375.00 369.6 109,045.4
crew 0 0 0
Purchase 1 15,24 110,88 1,090.0 375.00 369.6 109,045.4
r 0 0 0 0
Total 6 62,52 750,24 7,470.0 2,361 2,500. 553,839.4
0 0 0 8 4

Table 1. Compensation table

Chapter 3
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TECHNICAL ASPECT

The Technical Aspects is the discussion of basic and operation flow of the project. The
technical aspect is one of the essentials of this study because this factor responds to the
technicalities and basic structure of the proposed study. This includes the equipments,
materials, structure plan and also the source of the supplies use in the proposed project.
Business plans, promotion strategies, utilities, facilities, layout design and location
includes in this chapter

Location and Facility Layout

House of Nuts is located at, The Shop house Heritage BS Aquino Drive corner Narra
Avenue, Narra Ext, in front of Nena’s Rose Bacolod.

Figure 3. House of Nuts Location

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CASHIER

NUTS

HOUSE OF NUTS GROUND FLOOR PLAN

Figure 4. Ground Floor Plan

In the main floor, upon entering the store you directly see the product display in both
side of the isle and furthermore the cashier area and waiting area.
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STORAGE
ROOM

HOUSE OF NUTS SECOND FLOOR PLAN

Figure 5. Second Floor Plan

The stairs align with cashier area are heading off to the second floor wherein the
small space for meeting, resting station and locker station of the workers are situated just
as the stock of our product that being place in crate.

Service Description
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House of Nuts offers a variety of nuts from our local farmers’ and imported nuts
from international supplier. As soon as the customers enters the store, they will choose
the kind of nuts that they prefer to purchase. The nuts are sold in either bulk or per kilo.

Service Operation

The customer arrives, they will straightly check the choices of nuts and then makes
an order. They can choose either in bulk orders or per kilo. If the customer will order
nuts in bulk, they will get their order straightaway since the nuts are already on hand.
After they receive the nuts, they will directly proceed to the cashier for payment and will
automatically log the transaction into our system, and the customer will exit. If the
customer will order nuts per kilo, after they get their choice of nuts, they will directly
proceed to weighing scale then the employee will pack the order, and they will proceed
directly to cashier for payment and will automatically log the transaction into our system,
and the customer will exit.

Operational Flow Chart

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Store Opening

START
START

Time in attendance

Inventory Yes
Checks inventory
complete?

Display
No Product

Call on
Supplier

END
END

Inventory check is done every three weeks

Figure 6. Process flow chart of store opening

Store closing
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Start
START

Keep the materials

on its proper and
safe place and clean
designated area

Inventory and
stocks checking

Time out of attendance

End

Figure 7. Process flowchart of store closing

Cash Management flowchart

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Customer’s payment The cashier recieves

the payment

The cashier will

The cashier will lay the encode the payment
money to the cash and issue the
register customer a receipt

The cashier will cash The manager will

count and record the deposite the money in
income the bank

Figure 8.Cash Management flowchart

Inventory Management flowchart

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Start

Complete supply order form to

international supplier and call local
supplier for order

Submit order

Approved NO

Yes
Alter request

Log and check inventory

NO
Display only what’s
Enough available
Supply?
Yes

Prepare for storing and End

END
display

Figure 9. Inventory manangement flowchart

International supplier inventory

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For shipping transaction

Supplier consultation

No

Deal?
Renegotiation

Yes

Contract signing

Shipping

Custom Clearance

Tariff Payment

Delivery

Service Payment

End
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Service Flowchart

Start

Customer Arrives

Checks choices of nuts

Makes an order

Per kilo order

Bulk Order Customer
Request?

Proceed to weighing
Get the order scale

Pack the order

Payment

Payment
Log transaction

Log transaction
End

Figure 10 : Service Flow Chart

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Work Schedules

Work Schedules

Wee Description Time-in Personnel Time-out Time

k

1 Opening and 8:00AM Manager, 5:30PM Store 8:30AM

preparations Service Crew Open
1, Cashier 1,
Store
Purchaser
Close 5PM

2 Opening and 8:00AM Manager, 5:30PM Store 8:30AM

preparations Cashier 1, Open
Service Crew
2, Purchaser 5PM
Store
Close

3 Opening and 8:00AM Manager, 5:30PM Store 8:30AM

preparations Cashier 1, Open
Service Crew
1, Purchaser, 5PM
Store
Administrativ
Close
e staff

Table 2.Work Schedule

2019 2020

Activity NOV. DEC JAN. FEB MAR. APR. MAY JUN JULY AUG. SEPT NOV.
. . E .
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Feasibility

Survey
Look for
Supplier
Securing
Permit and
Document
Place
Renovatio
n
Hiring and
Training
Marketing
and
Promotion
Start of
Operation
Project Gantt chart

Table 3.Project Gantt chart

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Equipment and Machineries

Appliance Description Quantity Unit Total Picture

Cost Cost
Chillers A machine 1 12,450.0 12,450.0
for cooling 0 0
something,
especially a
cold cabinet
or
refrigerator
for keeping
stored food a
few degrees
above
freezing.
Fire An active 1 2,000.00 2,000.00
Extinguishe fire
r protection
device used
to extinguish
or control
small fires
often in
emergency
situations
 27

Ceiling Fan A 1 2,295.00 2,295.00

mechanical
fan,
suspended
from the
ceiling of the
room that
uses hub-
mounted
rotating
paddles to
circulate air.
Air To process 1 3,798.00 3,798.00
Conditionin of altering
g the
properties of
air to more
comfortable
conditions
Vertical Measure the 1 765.00 765.00
pole two weight of an
side display item. To use
weighing a scale, the
scale item which
needs to be
weighed is
put on one
side of the
scale.
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Emergency Effective 2 792.00 1,584

light auxillary
illumination
during
power
outtages that
guarantee
occupant
safety.

Table 4. Machineries

Furniture Description Quantity Unit Total Picture

Cost Cost
Bistro It will be 4 359.75 1,439.00
Chairs used for
sitting on
and it can
also be used
for standing
on, if you
can't reach
something
and also for
the
employees
to take a
rest while
waiting for
the
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customer.
Cashier Furniture 1 15,000 15,000
Counter for
Table servicing
customers,
consisting
of a table
that divides
the seller's
and buyer's
space.
Goods are
put onto this
table for
counting,
accounting,
and
delivering
goods.

Table 5. Furniture’s
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Cleaning Description Quantity Unit Total Picture

Supplies Cost Cost

Vacuum Common 1 2,155.00 2,155.00

household
appliance
used for
cleaning
purposes. A
vacuum
cleaner
cleans by
creating
suction. A
pump
creates a
pressure
difference
inside the
unit causing
atmospheric
air to be
forced up
through a
tubing
system.
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Spin Cleaning 1 600.00 600.00

Mop system that
spins away
dirty water
from your
mop head.
The dirty
water
collects in
the bucket,
and you're
ready to
clean your
floors with
a dirt-free
microfiber
mop.
Feather Feather 1 103.00 103.00
Duster dusters
collect dust
during use
and can be
easy
cleaned by
shaking the
duster
outside.
When
cleaning,
keep the
duster away
 32

from your
face as dust
will become
airborne.

Table 6. Cleaning Supplies

Chapter 4

MARKETING ASPECT

This chapter will take into consideration the viability of the business in its marketing
strategies. This will also cover the business description, demand and supply analysis,
wherein the results were taken from a survey conducted by the authors of this study.
Capacity analysis, competition analysis, 7 P’s and the target market positioning are also
included.

Business Description

The company concentrates on wholesaling different variety of raw imported and

local nuts that brings consumers a good texture, crunch, and flavor to so many of our
favorite cookies, even making your own peanut butter, and cakes.
 33

The House of Nuts will provide good service and high quality of nuts such as
cashew, pili, and peanuts from our local market and pistachio, walnut, pecan, almond,
hazelnut, and macadamia for imported nuts to fulfill the needs of the customers and this
includes providing them with a wide range variety of good quality nuts in a reasonable
price.

The company seeks to serve two types of market, the business and consumer
market. Consumer marketing consumer nuts for personal consumption while the business
market will consume nuts and present new materials of their product or to sell the nuts.
Consumer markets are expected to be walk-ins at the retails store while business
customers will call for regular purchase order or meet with the store manager.

Demand and Supply Analysis

The business conducted a survey where 100 questionnaires were distributed to

the different respondent including bakers, local individuals and street vendors. This
survey will serve as a tool for understanding the needs of the people and providing them
a better product and services that suits to their need, wants and their preferences.

The following data are the result of the survey:

Age of the respondents

Age
30-34 20
35-39 53
 34

40-44 11
45-49 5
50-54 1
55-59 5
60-64 1
65-69 2

Table 7. Age of the respondents

Most numbered respondents are in ages of 20-22 in which have a total number of 54%
followed by 15-19 which has 20%, ages 25-29 with only 11%, 30-34 and 40-44 has the
same total number with 5%, 50-54 with 2% and 35-39, 45-49 and 78-80 with 1%

Sex

Sex Frequency

Male 39

Female 61

Table 8. Respondents

Majority of the respondents are female of 61% and male respondents are 39% the result
of the study may be included to female preferences towards nuts.

Monthly Income respondents

Monthly Income Frequency

15,000-20,000 39
 35

21,000-25,000 28

26,000-30,000 16

31,000-35,000 8

36,000-40,000 5

41,000-45,000 2

46,000-50,000 2

Table 9. Monthly Allowance/Income of the respondents

Out of the 100 respondents who answered the survey, 39% have a ₱ 15,000- 20,000
range of daily allowance, A consumer’s daily allowance plays a crucial role for the
business because this determines the target market’s purchasing power which would
govern the amount of sales. Mostly, the respondents’ allowance range from ₱15,000 and
above every month. This is a good sign for the house of nuts as the target market
possesses enough financial resources enough for the business’ offered products.

Type of local and imported nuts preferred

Local nuts

cashew pili peanuts

40% 42%

19%

Figure 11. Preferred local nuts

 36

The results show that 66 of the respondents prefer cashew nuts, while 63 of the
respondents prefer peanuts, and 30 of the respondents prefer pili nuts. The results imply
that, since there is no stark difference in votes with cashew nuts and peanuts, productions
for the two varieties should be given greater importance in comparison to pili nuts.

Imported nuts

pistachio walnut pecan

almond hazelnut macadamia

10%
21%

17%

13%

28% 10%

Figure 12. Preferred imported nuts

The results show that 65 of the respondents prefer almonds, 49 of the respondents prefer
pistachios, 38 of the respondents prefer hazelnuts, 30 of the respondents prefer walnut,
and pecan nuts and macadamia nuts both tie gaining the preference of 24 respondents
each. The results imply that retailing for almonds should be given greater importance in
comparison to the other nuts.

Preferences of nuts as appetizer or dessert

appetizer dessert

34%

66%

Figure 13. Preferences of nuts as appetizer or dessert

 37

The results show that 66 of the respondents prefer eating nuts for appetizer while 34 of
the respondents prefer eating nuts for dessert. The results show the possible businesses
the team can approach to market products to, e.g. restaurants that can serve nuts for
appetizers. This would be beneficial to the business because we could arrange
partnership to supply any restaurants to purchase nuts for the appetizers for their
customers.

When do you usually eat nuts?

studying watching movie travelling

drinking working picnic
while...

16% 21%

12%

16%
9%

15% 12%

Figure 14. Participants usually eat nuts

The participants were ask as to when they eat nuts. This will contribute to store house or
even frequency of selling of nuts. This data may have advantages to the researcher to
which businesses may buy from house of nuts. The results show that 41 of the
respondents eat nuts while studying, 32 of the respondents eat nuts while talking with
 38

family and friends, 31 of the respondents eat nuts while watching a movie, 29 of the
respondents eat nuts while drinking, 24 of the respondents eat nuts while traveling, 23 of
the respondents eat nuts during picnics, and 17 of the respondents eat nuts while
working. The results serve as a basis for the location of the House of Nuts where it could
be strategically placed near a school, residences, or a cinema.

Participant’s favourite nuts

salted peanuts chili salted peanuts

coated peanuts
steamed peanuts cashew nuts
baked nuts hazel nuts plain
almonds pistachios walnuts
pecans

3%1%
8%
22%

11%

7%
12%
10%
7%
6%
6% 5%

Figure 15. Participant’s favorite nuts

 39

The results show that out of 12 choices the top five favorite nuts are salted nuts (22%),
plain (12%), almonds (6%), coated peanuts (10%) and pistachios (8%). The results imply
that House of Nuts should prioritize these varieties for customer satisfaction.

Frequency of purchasing nuts

everyday occasionally often

very often  never

13% 11%

31%
45%

Figure 16. Frequency of purchasing nuts

The results show that 45% of the respondents purchase nuts occasionally so, occasionally
typically means midway between "three to six times a year’s" and "about once or twice a
month". The results imply that House of Nuts has the chance of being viable to the
market due to the respondents’ response to how often they eat nuts.

Budget spent in buying nuts

14

A
23 b
C

63
 40

Figure 17. Budget spent in buying nuts

The results show that 63% of the respondents spend less than Php 3,000 on buying nuts,
23% of the respondents spend around Php 4,000-6,000 on buying nuts, and 14% of the
bakers spend Php 7,000 and above on buying nuts. The results serve as a basis for the
buying power of the consumers for the products of the House of Nuts.

From where do you usually buy nuts?

local markets malls street vendors

27%

42%

31%

Figure 18. Participants where usually buy nuts

There are different nuts available in the market today. This data may serve as company’s
completion. The results show that 42% of the respondents buy nuts from local markets,
31% of the respondents buy nuts from malls, and 27% of the respondents buy nuts from
 41

street vendors. The results imply that consumers usually buy nuts from street vendors
and the House of Nuts can use such awareness to supply and/or collaborate with street
vendors. This is also beneficial to the business because we can gain customer and have
an idea what more can we offer to.

The researcher where asked as purpose why they buy nuts

Ingredient Personal Consumption

22%

78%

Figure 19. Participants purpose why they buy nuts

The results show that 78% of the respondents buy nuts for ingredients and 22% of the
respondents buy nuts to use as personal consumption. The results imply the value of nuts
in the market and the viability of the House of Nuts.

Which do you prefer when buying nuts?

 42

kilo bulk pack

7%

20%

73%

Figure 20. Preferred quantity when buying nuts

The results show that 73% of the respondents prefer purchasing nuts in kilo, 20% of the
respondents prefer purchasing nuts in bulk, and 7% of the respondents prefer purchasing
nuts in pack. The results imply that the House of Nuts should give importance to
packaging in small quantities to adequately satisfy the needs of consumers.

When buying nuts which do you consider important?

brand price quality

6%
14%

80%

Figure 21. When buying nuts which do you consider important?

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The results show that 80% of the respondents consider prices important when buying
nuts, 14% of the respondents consider the brand important when buying nuts and 6% of
the respondents consider quality important when buying nuts. The results imply that
consumers give more important to the market value of nuts rather than the brand and
quality.

Capacity Analysis

House of nuts capacity analysis plays an integral role in our local farmers since
the business aims to provide and sustain income to our farmers. The business has its own
direct supplier at Valladolid and San Carlos City Negros Occidental to order 50kg –
100kg of nuts within four to five months after growing of nuts. Which they can
communicate right away when the supply runs out. The business offers a wide range of
imported nuts such as pistachio, walnut, pecan, almond, hazelnut, and macadamia that is
shipped from our international supplier and our local nuts cashew, pili, and peanut are
supplied by our local market. As technology continues to improve to meet the demands
of modern fulfilment, everything from using an advance equipment in order to kilo 5 to
10kg our product to a machine that automatic analyze inventory of the business.

Competition Analysis

Competitor’s profile

Hua Kong

Hua Kong is our indirect competitor since they may also offer nuts which is raw
peanuts, pili, cashew and pistachios but in the other hand they also supply a wide range
of Asian Grocery and health and beauty supplies. They supply to restaurants, drug stores,
health shops and wellness centers throughout Negros. It is Located at 65-67 Tindalo
Avenue Capitol Shopping Center, Bacolod, 6100 Negros Occidental.

Chef’s and Bakers

Located at 13th Lacson St (across Piazza Sorrento Extension) Barangay 4, Bacolod,

6100 Negros Occidental. Chefs & Bakers is a wholesale and retail specialty store
 44

carrying local and imported baking and cooking products. Our current line covers a
selection of ingredients, confectionery, packaging, party supplies, bake ware, cookware,
and specialty food items. This is also our indirect competitor because they are not just
offering nuts as their product they also offer different kinds of sweets and baking tools
and ingredients.

7P’s

Product

House of Nuts offers a wide variety of local and imported nuts which can bought as
bulk or per kilo in an affordable price providing and satisfying the needs and want of the
consumer and potential consumers without compromising its guaranteed quality nuts and
quality service. The product that will be available include local nuts exported from the
local farmer such as cashews, pili and peanuts. House of nuts also imports nuts such as
pistachios, walnuts, pecan, almonds, hazelnut and macadamia.

Place

The products of House of Nuts will be available at The Shop House Heritage BS
Aquino Drive Corner Narra Avenue, Narra Ext, Bacolod City, Negros Occidental
wherein the physical store is located. The chosen location is accessible. The House of
Nuts will be an indirect distributor. From our producers’ house of nuts will wholesale the
product to the retailers then it will be directly be sold to the consumers.

Promotion
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The business aims reach it customers with less promotional expenses so the business
came up with the idea of promoting through public relations and advertisings specifically
posters, by sponsoring events such as nut-based product competitor and by word of
mouth from our connections through this promotion House of nuts can easily attract
customers and potential customers and to be recognized as a trusted nut supplier in
Bacolod City.

Price

Each pricing objective requires a different price strategy in order to successful

achieve the business goals. We based our prices for each nuts at an online store in
California (https://www.nutstop.com/product-category/nuts-seeds/). So for us to come up
with our selling price we used the cost plus pricing method which it involves adding a
mark up to the cost of goods and services to arrive the selling price. The materials cost
added to the labor cost. In addition, because of the standard mark-up price or the cost
plus contracts which the government often uses as a bases for 30% that adds together
with the total cost and then multiplies the amount by (1 + 0.30) to derive at the product
price.
PRODUCT SOLUTION KILO
Price per kilo from supplier 1kg to Cost Plus Price
5kg + Standard mark-up price =
total cost / cost plus = Product price
Local Nuts
Cashew 350+30=380(1.30)=114+350 Php 467
Pili 100+30= 130(1.30) Php 169
Peanuts 100+30= 130(1.30) Php 169
Imported Nuts
Pistachio 600+30= 630(1+.30) Php 819
Walnut 509.49+30=539.49x.30=161+509.49 Php 617.38
Pecan 724+30=754x.30=226.20+724 Php 950.20
Almond 830x.30=249+800 Php 1,049
Hazelnut 930+30=279+900 Php 1,179

Table 10. Price per kilo

PRODUCT SOLUTION PACK

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1/4 of the price of per kilo + Standard Cost Plus Price

mark-up price = total cost / cost plus =
Product price
Local Nuts
Cashew 87.5+30= 117.5x.30=35.25+87.50 Php 122.75
Pili 25+30= 56x.30=16.50+25 Php 41.50
Peanuts 25+30= 55x.30=16.50+25 Php 41.50
Imported Nuts
Pistachio 150+30=180 x.30=54+150 Php 204
Walnut 127.37+30= 157.37x.30=47.21+127.37 Php 174.58
Pecan 181+30=211x.30=63.30+181 Php 244.30
Almond 200+30= 230x.30=69+200 Php 269
Hazelnut 225+30= 255x.30=7,650+225 Php 301.50

Table 11. Price by pack

PRODUCT SOLUTION BULK

bulk price (10 kilo) + Standard mark-up Cost Plus Price
price = total cost / cost plus = Product
price
Local Nuts
Cashew 3,500+30=3,530x.30=1,059+3500 Php4,559
Pili 1,000+30=1,030x.30=309+1000 Php 1,309
Peanuts 1,000+30=1,030x.30=309+1000 Php 1,309
Imported Nuts
Pistachio 6,000+30=6,030x.30=1,809+6,000 Php 7,809
Walnut 5,095+30=5,125x.30=1,537.50+5095 Php 6,632.50
Pecan 7,240+30= 7,270x.30+2,181+7,240 Php 9,421
Almond 8,000+30= 8,030x.30=2,409+8,000 Php 10,409
Hazelnut 9,000+30=9,030x.30=2,709+9,000 Php 11,709

Table 12. Price per bulk

People

In establishing a business one of the most important things is considering the target
market. It is important since it enables the business to direct its resources to those
customers with high potential for sales growth. Based on the data that we have gathered
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The House of Nuts target market will be the bakers, peanut vendors and most especially
the local individuals of Bacolod that uses nuts as one of their ingredients in baking and
the local individuals of Bacolod. The first target market are the bakers who uses the nuts
as their one of their ingredients in baking. Secondly, the nut vendors who retails ready to
eat nuts. And lastly, the local individuals who purchase nuts for personal consumption.

Process

Business operation starts with time in. after time in will be the checking of
inventories. If the inventory are not complete they will prepare for available supplies and
call the supplier and if the inventory is complete they will proceed to displaying the
product. All employees will be given instructions on what are their personal tasks and
roles in the business. As soon as a customer enters, all employees must greet the
customers and the sales crew will usher them to the isle where the wide range of nuts are
located. Once the customer already chose what she/he wants, the sales crew will ask
him/her if she/he will be buying by kilo or bulk. Then if the customer is buying per kilo
the sales crew will get a box and kilo the nuts that the customers have chosen, and if the
customer is buying by bulk the sales crew will go to the stock room and get the order.
Once completed, the sales crew will bring the product to the cashier. The cashier will
check the kilo or the bulk of the product and encode it to the computer. Once encoded,
the cashier will tell the price of the product. If the transaction is finished, the sales crew
will assist the customer in going out of the store. When the business operation ends they
will inventory the income of the day and will check the stocks that are available for the
next day. After that they will clean the areas in the stores next is time out attendance.
And lastly store closing.

Physical Evidence

Upon arriving in the physical store of House of nuts, you can see our signage. When
you enter the store you will immediately be welcomed with our staff wearing a color
green apron as their uniform imprinted with our logo. Right away, you will see our
products displayed in their designated containers. You get choose from our wide
varieties of nuts that are available. After choosing your nuts, it will be packed with our
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customized canvas bag or paper bag with the logo displayed in front depending on how
much kilo you will purchase.

(Used for kilo and bulk

purchase) (Used for pack purchase)

Packaging

Uniform
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Branding

The company exists because of the purpose to widen the participation of our local

farmers in the industry. To contribute to the bakers and consumers who uses nuts as
an ingredient to have a variety of choices of nuts with the help of the international
supplier as a tool to more imported nuts in the market. The company came up with a
catch phrase “Nut’in but nuts” that can be read as “Nothing but nuts” it does relate to the
concept of the business that only sell nothing but nuts. The company will use this logo on
every on every official documents and products of the house of nuts.

Market Positioning

The location should be given the highest priority when marketing a product, because
it helps to decide the target markets and the price. So, The House of Nuts is located at
The Shop house Heritage BS Aquino Drive corner Narra Avenue, Narra Ext, Bacolod,
6100 Negros Occidental. The business chose this location because a number of people
passes this area and it is a very convenient location to all buyers because it can be easily
seen. Our Product is the first thing that customers scrutinize in order to decide whether
they want to buy. Our nuts comprise of many elements which include variety and quality
which are both available in our store. Furthermore, our target market are the street
vendors, bakers and people who are fond eating nuts.
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Perceptual Map

More Variety

Not
Accessible in
Accessible
place
In place

Less variety