1

1.0 EXECUTIVE SUMMARY

Filipinos face large burden of diseases caused by bacteria and viruses such as

Tuberculosis, Dengue, Malaria, HIV/AIDS and even COVID. These diseases pair with

protein- energy malnutrition and micronutrient deficiencies that are becoming

increasingly common. In addition, the population is affected by a high prevalence of

obesity along with heart disease. With the presence of the COVID-19 pandemic,

consumers of today are becoming more conscious about their health. Consumers

will be increasingly adopt what they feel are preventive strategies to combat COVID-

19 which will in form of boosting performance of immune system, reducing obesity,

and taking vitamins and dietary supplements.

D’fruitery fruit salad offers the health and benefits the consumers’ needs to aid their

immune system during the pandemic. It is made from fresh watermelon, papaya,

banana and apple fruits. Our product will offer numerous health benefits that are

good for the body and will cater the ever increasing demand for a healthy food

choice, diets and losing weight. The fruit ingredients have undergone through a

careful decision-making process and are chosen for their multiple health benefits

that include a whole array of nutrients, vitamins, fiber and anti-oxidants. It is best for

all diet oriented consumers because the ingredients have low calories and is rich in

fiber that can help avoid constipation, improve digestive health and help reduce

weight naturally without health risk.

The defined customer base of the business are Kagay-anons between 14-65 years

old and above. The projected market size in pesos for the first year operation is

10,800,000 with a positive increase percent in market share 5.833%. The market size
 2

for the second year operation amounts to 11,034,360 with a market share of

5.833%, third year amounts to 11,277,166 with a market share of 5.834%. The

projected sales in quantity and pesos annually for the first year operation is

presumed to be 18,000 in quantity and a profit of 630,000, second year amounts

18,390 in quantity and a profit of 643,650, third year amounts to 18,798 in quantity

and a profit of 657,930.

The project’s initial investment for first operation will be fully recovered within 3months of

the year’s operation, while the second up to third year investment will be recovered within

three months of its operation. The initial investment of Php 33,500 for the first year

generated 290.53%. For the second year, the return on investment increases to 338.61% and

353.45% for the third year. The breakeven point in quantity (BEP) is Php 9,081, which means

that the business should sell 9,081of fruit salad to cover its cost. The breakeven point in

sales is Php 317,835.

Fruit salad business is a subsidiary of the global fruit processing industry and players

in this industry are engaged in the processing and packaging of fresh fruits into

canned, bottled, frozen, dried or otherwise processed or preserved food products

for human consumption. Competitors in this industry compete with soft drinks and

other processed juices.

The funding requirement needed for the first year operation will amount to PHP

33,500. For the second and third year operation, the funds needed will amount to

30,000 only. We will use this money to develop and launch the business. The initial

investments are used to purchase equipment, supplies, and materials to start the

business operation.
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2.0 OPPORTUNITY

Fruits give various benefits for the body. It is excellent source of essential nutrients

like vitamins and minerals. Vitamins and minerals perform many roles in the body.

Aside from minerals and vitamins, fruits are also great source of fiber that keeps the

digestive system healthy. According to Dr. Atienza, a nutritionist and assistant

professor at the Nutritional Sciences Division, Institute of Human Food and Nutrition,

College of Human Ecology at the University of the Philippines-Los Baños in Laguna, in

Asia alone, three out of four people do not eat the prescribed amount of fruits and

vegetables, consuming only around 100 grams on the average. Some developed

countries like Australia and the US consume around 300 grams. In the Philippines,

the situation is also the same. She said that some of the most common reasons why

Filipinos held back from consuming fruits are the high price and lack of knowledge of

their benefits. She also cited a recent survey where in Asia, among the reasons cited

for low consumption of fruits and vegetables are urban migration, busy lifestyles,

and increase in number of people who live alone and therefore have no time to

cook.

D’ Fruitery is a company that aims to offer delicious and freshly cut fruits in a

container. FreshBits is a Fruit salad in a cup packed with healthy goodness inside.

Inside the container is four precious fruits namely watermelon, banana, apple, and

papaya. For starter, watermelon is a low-calorie fruit high in some nutrients,

especially carotenoids, vitamin C and cucurbitacin E. Fiber, antioxidants and several

nutrients are just some of benefits of consuming bananas. Apples are a good source
 4

of fiber and vitamin C. They also contain polyphenols, which may have numerous

health benefits. Lastly, Papaya has powerful antioxidant effects, which may reduce

oxidative stress and lower your risk of several diseases. Imagine one product with

low price that gives people a lot of benefits, this is what we do. D’ Fruitery offers you

an inexpensive product that gives health benefit for the consumer to improve health

and maintain a healthy body. Our fruit salad is inside a clear cup for easy grip,

perfect for people on the go.

D’ Fruitery wants to inform its consumers the health benefits that they will gain

when indulging our tasty fruit salad. With our simple and aesthetic packaging, we

will include the approximate calorie content per cup. We also include the vitamins

and minerals that FruitBits gives. Health benefits per fruits will also be visible on the

packaging. Quotes of healthy lifestyle are also included in the packaging to

encourage consumers to stay healthy.

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3.0 AGRI ENTERPRISE PLAN

3.1 Official Agri Enterprise Name

The official name of the Agri Enterprise is D’Fruitery. The “D” stands for the name

initials of the two owners and the “Fruitery” is defined as a place where someone

eats fruit.

3.2 Vision Statement of the Agri Enterprise

The vision of D’ Fruitery is to become one of the most well known student-owned

business in the City that offers products to help the Kagay-anons achieve a healthy

body and mind by the year 2030.

3.3 Mission Statement of the Agri Enterprise

Our mission is to offer healthy, fresh, and affordable fruit salad that helps everyone

maintain a healthy body and mind while preventing the use of plastic packaging for

the preservation of the nature.

3.4 Official Logo of the Agri Enterprise

3.5 Products of the Agri Enterprise

D’Fruitery
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3.6 Brand Names and Brand Logos of the Products

The brand name of D’Fruitery’s fruit salad is Freshbits. The owners come up with the

idea to ensure that the customers are served with the freshest bits of fruits that the

business needs to offer.

3.7 Form of Business Organization of the Agri Enterprise

D’ Fruitery is Partnership of two co-owners. The business better as partnership since

each of the owners has its expertise in business that is utilized and maximize to

enhance the business operation. Each of the owners have different strength and

weaknesses that the neither of the two can be effective for. The skills and expertise
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of the partner are assigned to the department where it will manage. Partnership

business is registered in Securities and Exchange Commission (SEC). Approximately

Php 4,500-5,000 is needed to register your business excluding the fee for the

documentary stamp taxes that covers additional payment of Php 1 for every Php 200

of capital. To complete the process of registration, roughly a month and 2 weeks is

needed to follow all the steps.

3.8 Owners of the Agri Enterprise

One of the owners of D’Fruitery is Mr. Neil Dave Clemencio Suarez, 21 years old

currently a 3rd year student taking Bachelor of Science in Agribusiness in Xavier

University- Ateneo de Cagayan.

The second owner of D’Fruitery is Ms. Daynielle Colette Baconga Salatan, 21 years

old and also a current 3rd year Agribusiness student in Xavier University-Ateneo de

Cagayan.

4.0 ORANIZATION AND MANAGEMENT PLAN

4.1 Organizational Chart of the Agri Enterprise 3-YEARS

D’ Fruitery is still starting from a humble beginning; for the year 2022, the business

has a simple organizational chart that starts with Neil Dave Suarez as the General
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Manager that oversees the entire business operation. Under the general manager

are the Marketing and Finance department that is handled again by Mr. Suarez. For

the Human Resource, production, and procurement department, Ms. Daynielle

Colette Salatan is the person in charge. There is only one cashier under the managers

which also serves as the one making the orders.

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4.2 Job Descriptions of the Positions in the Organizational Chart

There are only few personnel in charge for the business operation of D’Fruitery since

it is still starting. The head of the organization is the general manager.

The General Manager is in charge for allocating budget resources, formulating

policies, managing operational costs, monitoring financial activities, and improving

administration process. In addition, he should develop and implement effective

business strategies and programs.

The Marketing Manager promotes the business brand and products. He should

optimize the marketing strategies, managing the marketing department’s budget

and staff, as well as preparing forecast.

The Finance Manager is responsible for the collection, interpretation, and review of

financial information of the business. He should also produce the financial reports.

Reviewing, monitoring, and managing the budgets are among of his responsibilities.

For the production manager, she makes sure that the goods are safely produce, and

in a cost-efficient way. She makes sure that the products produced meets the quality

standard and are available on time.

The procurement manager is responsible nurtures the relationship between the

business and the suppliers to negotiate the best price for the company. She also

assesses the total cost of company purchase and develop, and implements strategies

for procuring, storing, and distribution of goods.

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The Human Resource Manager is responsible for the development of personnel

policies and procedures. She should also recommend new policies, approaches, and

procedures. Finally, HR manager is responsible for the planning, organizing, and

controlling the activities and actions of the HR department.

4.3 Infrastructure priorities of the Agri Enterprise

For the mean time, the business will not purchase properties due to budget

constraints. Assuming that for the next 3 years that the business will accumulate a

huge amount of profit, it will be allotted for expansion and purchasing of necessary

equipment and properties. One of the priorities of the business is storage and

chilling facility that has a capacity of 1 ton of fruits and other raw materials. This will

enable the business to increase the daily production and it can store more fruits to

preserves it for the future use. The next priority is a unit of delivery vehicle. The

delivery vehicle will help for the transport of the fruits from the storage facility to

the selling store across the city. This vehicle is also a necessity in delivering bulk

orders from partnering businesses in the city. Lastly, the business aims to purchase

multiple units of chiller for store use.

4.4 Management Priorities of the Agri Enterprise 3 YEARS

First Year Operation Second Year Operation Third Year Operation

D’fruitery will develop and D’fruitery will enhance its D’fruitery will enhance its

implement a strong employee management. customer service by

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marketing plan for the D’fruitery will listen, providing quality and

company. This includes correct problems, perform satisfaction to the

performing thorough regular reviews and customers. This in turn,

marketing research, delegate duties to the best will generate income and

promotion and advertising of the employee prolong the business

initiatives. capabilities. operation while keeping

the customers satisfied.

5.0 ANALYSIS OF THE AGRI ENTERPRISE

5.1 S.W.O.T of the Agri Enterprise

Strength

 The product is healthy as it is.

 The product is suitable for anyone, at any age.

 The store location is an excellent area since there are a lot of people pass by

the plaza and is surrounded by two schools and can by access by motorists

from the highway.

 The product is prepared in front of the customer so they can see how their

food is prepared.

 The starting capital of the business is only Php 30,000 which is relatively low

compared to other business needing huge amount of capital.

Weakness
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 The main raw materials which are fruits have to be preserved to prevent

from rotting.

 Fruits are seasonal. During the season when they are not grown, prices from

the supplier might increase.

 There are fruits that turn brown when peeled or bruised which is not

presentable to look at for the consumers.

 The quality of the fruits may not be uniform since the sweetness and the

inside of the fruit is covered by the skin of the fruits.

 Once peeled, the fruits should be consumed immediately to prevent from

deteriorating quality.

Opportunities

• Nowadays, most people are shifting for healthy lifestyle due rise and increase

rate of diseases

• Opportunity to expand the business because of increasing demand of fruits in

the country.

• An opportunity to link with other student-owned delivery business will help

in reaching the customers for to taste or products.

• The increase number of people in early adulthood that lives in the city that

has no time to prepare healthy food or snacks can also be a target market.

• Our product can also partner with other business that offers rice meal to

complete the meal with fresh fruits.

• Fruits that are not yet cut can be sold if needed.

Threats
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• There is an intense competition with other fruit stand that also offers fruit

salad.

• Unbounded changing of customers demand and preferences always affect

the business.

• The competitors of the business are mostly huge supermarket like SM and

Save More.

• The sudden change in climate will affect the cropping season of the fruits

and will affect the supply of the fruits in the business.

• During the fruit’s season, fruit prices decreases and consumers may opt to

buy from the market than in the stores.

5.2 Internal Factor Evaluation Matrix of the AgriEnterprise( IFE )

Internal Strengths Weight Rating Weighted

Score

1. The store location is an excellent area since there 10% 4 0.4

are a lot of people pass by the plaza and is
surrounded by two schools and can be access by
motorists from the highway.

2. The product is suitable for anyone, at any age.  12% 4 0.48

3. The product is healthy as it is.  4% 3 0.12

4. The product is prepared in front of the customer 8% 4 0.32

so they can see how their food is prepared. 

5. The starting capital of the business is only Php 5% 3 0.15

30,000 which is relatively low compared to other
business needing huge amount of capital.

6. The store is near/close to the suppliers proximity 5% 3 0.15

7.Access to cheap and reliable labor services 4% 3 0.12

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8. Positive reputation and opportunity as a startup 3% 4 0.12

business

9.Workforce are well educated 4% 3 0.12

10.Leadership to product innovation 4% 4 0.16

Internal Weakness

1. Fruits are seasonal. During the season when they 10% 1 0.1
are not grown, prices from the supplier might
increase.

2. The main raw materials which are fruits have to be 12% 2 0.24
preserved to prevent from rotting.

3. The quality of the fruits may not be uniform since 8% 2 0.16

the sweetness and the inside of the fruit is covered
by the skin of the fruits.

4. There are fruits that turn brown when peeled or 4% 1 0.04

bruised which is not presentable to look at for the
consumers. 

5. Once peeled, the fruits should be consumed 5% 2 0.1

immediately to prevent from deteriorating quality. 

6. Is sensitive to farmer's prices 4% 1 0.04

7. Limited access to distant markets 5% 1 0.05

8. Risk of limited resources 4% 2 0.08

9. Highly Competitive Market 3% 1 0.03

10. Small workforce that is prone to leave/absences 4% 1 0.04

              Major weakness (1) Minor weakness (2).                Major Strength(4)    

Minor Strength (3)

TOTAL WEIGHTED SCORE 100% 3.02

5.3 External Factor Evaluation Matrix of the AgriEnterprise (EFE)

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OPPORTUNITIES Weight Rating Weighted

Score

1. Nowadays, most people are shifting for healthy lifestyle 10% 4 0.4
due rise and increase rate of diseases

2. Opportunity to expand the business because of 12% 4 0.48

increasing demand of fruits in the country. . 
3. An opportunity to link with other student-owned delivery
business will help in reaching the customers for to taste or 4% 4 0.16
products.

4. The increase number of people in early adulthood that 8% 3 0.24

lives in the city that has no time to prepare healthy food or
snacks can also be a target market.

5. Our product can also partner with other business that 5% 3 0.15
offers rice meal to complete the meal with fresh fruits. 

6. Fruits that are not yet cut can be sold if needed. 5% 3 0.15

7. Accept/Receive orders and payments online 4% 4 0.16

8. Partner with delivery services 3% 4 0.12

9. Good relationship with suppliers 4% 3 0.12

10. The growth of the fruit salad industry. 4% 4 0.16

THREATS

1. There is an intense competition with other fruit stand 10% 2 0.2

that also offers fruit salad. 

2. Unbounded changing of customers demand and 12% 2 0.24

preferences always affect the business. 

3. The competitors of the business are mostly huge 8% 2 0.16

supermarket like SM and Save More. 

4. The sudden change in climate will affect the cropping 4% 2 0.08

season of the fruits and will affect the supply of the fruits in
the business. 

5. During the fruit’s season, fruit prices decreases and 5% 2 0.1

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consumers may opt to buy from the market than in the

stores. 

6. Climbing prices of farmers key inputs 4% 2 0.08

7. Economic downturn due to the pandemic 5% 2 0.1

8. Government policies and restrictions 4% 2 0.08

9. New competitors 3% 1 0.03

10. Increase in unemployment rate 4% 1 0.04

                                    Poor (1)     Below Average (2).                   Above Average (3)    

Superior (4)

TOTAL WEIGHTED SCORE 100% 3.25

5.4 Interpretation and Analysis of the IFE Matrix of the Agri Enterprise

The total weighted score of 3.02 which is above the average point of 2.5, indicates
that the company achieves a strong internal position.

5.5 Interpretation and Analysis of the EFE Matrix of the Agri Enterprise

The total weighted score of 3.25 indicates that the business has more than the 
average ability to respond to external factors. 

5.6 S.W.O.T Matrix of the Agri Enterprise
OPPORTUNITIES
1. Nowadays, most people are
shifting for healthy lifestyle due rise
and increase rate of diseases
2. Opportunity to expand the
business because of increasing
demand of fruits in the country.
SWOT ANALYSIS MATRIX OF D’FRUITERY
STRENGTHS
1. The product is healthy as it is.
2. The product is suitable for
anyone, at any age.
3. The store location is an excellent
area since there are a lot of people
pass by the plaza and is surrounded
by two schools and can by access by
motorists from the highway.
4. The product is prepared in front
of the customer so they can see how
their food is prepared.
5. The starting capital of the
business is only Php 30,000 which is
relatively low compared to other
business needing huge amount of
capital.
STRENGTH /OPPORTUNITIES
STRATEGIES
1. Partner with canteens in
schools, offices, and other
private company canteens.
S2 & O5
2. Include the benefits such as
vitamins and minerals from
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WEAKNESSES
1. The main raw materials which are
fruits have to be preserved to
prevent from rotting.
2. Fruits are seasonal. During the
season when they are not grown,
prices from the supplier might
increase.
3. There are fruits that turn brown
when peeled or bruised which is not
presentable to look at for the
consumers.
4. The quality of the fruits may not
be uniform since the sweetness and
the inside of the fruit is covered by
the skin of the fruits.
5. Once peeled, the fruits should be
consumed immediately to prevent
from deteriorating quality.
WEAKNESSES/ OPPORTUNITIES
STRATEGIES
1. Sell (unprocessed) fruits
by kilo to customers or
other establishments. S5
& O6
2. Using cling wrap and
other airtight packaging
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3. An opportunity to link with other
student-owned delivery business
will help in reaching the customers
to taste our products.
4. The increase number of people in
early adulthood that lives in the city
that has no time to prepare healthy
food or snacks can also be a target
market.
the fruit salad to the
packaging. S1 &O1
3. If feasible enough, we can
expand our operations by
opening another stall in a
specific location in the city.
S5 & O2
can help preserve the
fruits’ quality. S3 & O4
3. Fruits which don’t have
uniform sweetness and
taste will be turn into
fruit shakes or other
products to prevent loss.
S4 & O1

5. Our product can also partner with

other business that offers rice meal
to complete the meal with fresh
fruits.

6. Fruits that are not yet cut can be

sold if needed.
THREATS
1. There is an intense competition
with other fruit stand that also
offers fruit salad.
2. Unbounded changing of
customers demand and preferences
always affect the business.
3. The competitors of the business
are mostly huge supermarket like
SM and Save More.
4. The sudden change in climate will
affect the cropping season of the
fruits and will affect the supply of
the fruits in the business.
STRNGTHS/ THREATS STRATEGIES
1. Offer in-store sampling of the
fruit salad to encourage
customers to buy. S2 & T2
2. Select excellent location to
expand to gain more market
share. S1 & T1, T3
3. Preserving the fruits and
making new products like
shakes and smoothies will
eliminate loss and create
value addition. S1, S2 & T4
WEAKNESS/THREATHS STRATEGIES
1. Offering other fruit products
like smoothies, juices can be
done to help sell the fruits
and prevent loss. W1 & T5
2. Have an efficient storage and
preservation facilities and
equipment to preserve fruits.
W1 & T4
3. Conducting surveys and
record customer feedbacks
should be done to keep tract
of the customer’s
preferences and sales
forecast. W4 & T2

5. During the fruit’s season, fruit

prices decreases and consumers
may opt to buy from the market
than in the stores

5.7 the Quantitative Strategic Planning Matrix (QSPM )

  1. Market 2. Product 3. Sales,

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Penetration/Expan Development/Valu Employee

d market reach e Addition ,Inventory and
Customer
Management/PO
S

Critical Wt AS TAS AS TAS AS TAS

Success
Factors

1. The store 0.06 3 0.207 2 0.138 3 0.207

location is an 9
excellent area
since there
are a lot of
people pass
by the plaza
and is
surrounded by
two schools
and can be
access by
motorists
from the
highway.

2. The product 0.05 1 0.052 3 0.156 2 0.104

is suitable for 2
anyone, at
any age. 

3. The product 0.05 1 0.055 4 0.22 2 0.11

is healthy as it 5
is. 

4. The product 0.04 1 0.048 3 0.144 2 0.096

is prepared in 8
front of the
customer so
they can see
how their
food is
prepared. 

5. The starting 0.05 2 0.116 2 0.116 2 0.116

capital of the 8
business is
only Php
 20

30,000 which
is relatively
low compared
to other
business
needing huge
amount of
capital.

6. The store is 0.06 3 0.183 2 0.122 2 0.122

near/close to 1
the suppliers
proximity

7.Access to 0.05 2 0.116 2 0.116 2 0.116

cheap and 8
reliable labor
services

8. Positive 0.04 3 0.123 2 0.082 2 0.082

reputation 1
and
opportunity as
a startup
business

9.Workforce 0.06 1 0.068 1 0.068 4 0.272

are well 8
educated

10.Leadership 0.04 1 0.046 4 0.184 2 0.092

to product 6
innovation

Internal
Weakness

11. Fruits are 0.06 3 0.183 2 0.122 2 0.122

seasonal. 1
During the
season when
they are not
grown, prices
from the
supplier might
increase.

12. The main 0.05 1 0.053 3 0.159 2 0.106

raw materials 3
 21

which are
fruits have to
be preserved
to prevent
from rotting.

13. The 0.05 1 0.054 2 0.108 1 0.054

quality of the 4
fruits may not
be uniform
since the
sweetness
and the inside
of the fruit is
covered by
the skin of the
fruits.

14. There are 0.05 1 0.057 2 0.114 1 0.057

fruits that 7
turn brown
when peeled
or bruised
which is not
presentable to
look at for the
consumers. 

15. Once 0.05 1 0.052 3 0.156 1 0.052

peeled, the 2
fruits should
be consumed
immediately
to prevent
from
deteriorating
quality. 

16. Is sensitive 0.06 3 0.189 1 0.063 2 0.126

to farmer's 3
prices

17. Limited 0.03 4 0.156 1 0.039 1 0.039

access to 9
distant
markets

18. Risk of 0.06 2 0.13 3 0.195 2 0.13

 22

limited 5
resources

19. Highly 0.07 3 0.225 1 0.075 1 0.075

Competitive 5
Market

20. Small 0.05 1 0.058 1 0.058 4 0.232

workforce 8
that is prone
to
leave/absence
s
2 1. Nowadays, 0.046 2 0.092 4 0.184 2 0.092
most people
are shifting for
healthy lifestyle
due rise and
increase rate of
diseases

22. Opportunity 0.065 4 0.26 1 0.065 1 0.065

to expand the
business
because of
increasing
demand of
fruits in the
country. . 
23. An
opportunity to 0.061 3 0.183 2 0.122 1 0.061
link with other
student-owned
delivery
business will
help in reaching
the customers
for to taste or
products.

24. The 0.057 2 0.114 1 0.057 1 0.057

increase
number of
people in early
adulthood that
lives in the city
that has no
time to prepare
healthy food or
 23

snacks can also

be a target
market.

25. Our product 0.063 1 0.063 4 0.252 2 0.126

can also
partner with
other business
that offers rice
meal to
complete the
meal with fresh
fruits. 

26. Fruits that 0.070 1 0.070 4 0.28 2 0.14

are not yet cut
can be sold if
needed.

27. 0.042 1 0.042 1 0.042 2 0.084

Accept/Receive
orders and
payments
online

28. Partner 0.054 1 0.054 2 0.108 2 0.108

with delivery
services

29. Good 0.048 3 0.144 2 0.096 2 0.096

relationship
with suppliers

30. The growth 0.061 3 0.183 2 0.122 2 0.122

of the fruit
salad industry.

THREATS

31. There is an 0.053 3 0.159 2 0.106 2 0.106

intense
competition
with other fruit
stand that also
offers fruit
salad. 

32. Unbounded 0.042 2 0.084 3 0.126 3 0.126

changing of
customers
demand and
preferences
 24

always affect
the business. 

Interpretation:

It is determined that D'fruitery needs to pursue an aggressive strategy aimed both in

further penetration of the market and developing/value adding to the product.

However, among the three alternative strategies indicated both the first and second

alternative strategies garnered the highest score above 4. It is concluded that

expanding market reach or market penetration is a better option. This is given by the

total attractiveness score figure of 4.814

6.0 MARKETING PLAN OF THE AGRI ENTERPRISE

6.1 Market Summary

6.1.1 Market Characteristics

Initial characteristics show that the market is poised for growth in demand for a

variety of fruits, and that fruit salads are increasingly important as a component of

everyday Filipino diets significantly during the pandemic. Fresh fruits demand

increased in the country, this fact is propelled by the strong consumer trend to eat

more healthy food. Most of this fruit consumption takes place in the form of salads,

although some are eaten directly.

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Geographics

Lapasan is a barangay in the city of Cagayan de Oro. Its population as determined by

the 2015 Census was 43,611. This represented 6.45% of the total population of

Cagayan de Oro.

Demographics

Segments Benefits Demographics Behaviour Psycho graphics

Adults Nutrition, Health, 25-above Nutrition Parents
Price alternative Professionals
drinkers, tasty
eaters
Health Conscious General Health 18+ Diet and Health Professionals
Nutrition conscious eaters Health
Long life oriented Diet
Youth Trendy taste 14-18 Tasty eaters Average
Mobile Might eat fruits
but with different
taste

Behavior Factors
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Fruits belongs to the main dietary food products for any individual irrespective to

their education, income and social status, knowledge etc. It is a requirement for

the daily consumption, the consumer is always in a dilemma making his/her

purchase decision more complex and unpredictable. However, more sales

opportunities can be obtained with the current market regarding the experience and

situation the consumer faces.

6.1.2 Market Needs

Even though Philippines are abundant with tropical fruits, Filipinos are still not

consuming enough serving of fruits per day. The recommended fruit intake per day is

150 grams or 1 and a half cups of fruits according to eatforhealth.gov. With the

recommended fruit intake per day, only 1 out of 4 people are consuming enough

fruits a day. According to Dr. Atienza, an assistant professor at the Nutritional

Sciences Division, in the Philippines three out of four people do not eat the

prescribed amount of fruits and vegetables. The most common factors that prevent

Filipinos from consuming the required serving of fruits per day are the expensive

price and the lack of knowledge of the fruit’s benefits. D’ Fruitery offers healthy and

fresh fruit salad for the consumer’s convenience. FreshBits fruit salad is packed in a

200 grams clear container as a guide of one serving and will let the consumer know
 27

what fruits they are about to take. Labels on the packaging also include the benefits,

vitamins, and minerals of every kind of fruit in the salad.

6.1.3 Market Trends

According to cagayandeoro.gov.ph. Agriculture is foreseen to continue as a major

sector of Cagayan de Oro City’s economy despite of an environment that is marked

by rapid urbanization, unprecedented trade and commercial growth, and stiffer

competition from similar products coming from nearby provinces. Efforts to make

the sector more productive and competitive, however, are hampered by a number of

challenges that undermine the sector’s capability to attain optimum growth.

Foremost of these challenges are the low productivity of existing farm areas and the

hydromet variability or weather extremes that the city has experienced in recent

years and expected to reoccur.

6.1.4 Market Growth

The Fruit salad business in the region is estimated to be P10,800,000 in pesos for the

year 2022. And the business is expected to reach P11, 277,116 in three years time.

However, providing the business is successful, there is no reason to expand to other

regions if the market growth shows an increase for the course of three years.

Year
Market Size 2022 2023 2024
In terms of peso Php10,800,000 Php 11,034,360 Php 11,277,116
Market Growth - 2.17% 2.22%
 28

The table above shows the market size in pesos of fruit salad business in Cagayan de

Oro. It is assumed that there is a 2.17% increase for the second year and 2.22%

increase on the third year. This assumption is in line with the average increase o f

population in the Philippines per year.

6.2 Competition

There are different forms of competition that may face the fruit salad business.

These are price and non-price based competition. Moreover, there are different

competitors that will compete with the business either directly or indirectly. But the

Fruit salad business under discussion has diversified marketing strategies that could

enable it to cope up with the different competitors in the market. Moreover, it will

frequently conduct competitors research which focuses on, the strength and the

weaknesses, the different competitors’ strategies, the techniques they use in

rendering the service, their customer handling methods, and others.

6.2.1 Customers

There are groups of customers for our fresh fruit salad and the trends are different

from segment to segment. The segments are focused to Kids, Adults, Health

Conscious, and the Youth.

6.2.1 Collaborators
 29

D'fruitery's partners are expected to take part in this business feasibility study.

These partners can be NGOs, private/public sectors or individuals. Partnering is not

only in funds but also in providing services.

6.2.3 Climate

Cagayan de Oro City has low-lying areas, such as the barangays near Macajalar Bay

and along Cagayan de Oro and Iponan Rivers that frequently experience flooding.The

city is also prone to landslides, likely to be cause by rainfall induced by climate

change

6.3 Detailed Product Offering

FreshBits is a Fruit salad in a cup pack with special goodness inside. Inside the

container is four precious fruits namely watermelon, banana, apple, and papaya. For

starter, watermelon is a low-calorie fruit high in some nutrients, especially

carotenoids, vitamin C and cucurbitacin E. Fiber, antioxidants and several nutrients

are just some of benefits of consuming bananas. Apples are a good source of fiber

and vitamin C. They also contain polyphenols, which may have numerous health

benefits. Lastly, Papaya has powerful antioxidant effects, which may reduce

oxidative stress and lower your risk of several diseases. Imagine one product with

low price that gives people a lot of benefits, this is what we do. D’ Fruitery offers an
 30

inexpensive product that gives health benefit for the consumer to improve health

and maintain a healthy body. The fruit salad is inside a clear cup for easy grip,

perfect for people on the go.

6.4 Keys to Success

Fruits are highly perishable, more so if they are not well processed during harvesting,

handling and transportation, they lose quality and become unfit for human

consumption. D'fruitery believes that it is necessary to make investment in

marketing, packaging and presentation to increase the value and quality of the

product. These are keys to success that will increase the probability of making sale

and prevent losses in the future.

6.5 Critical Issues

Traditional fruit stores have higher recognition than the fruit salad industry, which

gives the fruit salad industry a bigger competitive pressure. Original fruit salad

brands in the market have taken root in their own fixed markets and may snatch

market shares in the face of threats posed by new brands. Therefore, traditional

brands will overpower new brands, and narrow their spaces to survive, and due to

unstable foundation in the market, new businesses and brands can be easily

suppressed and forced to close. On the other hand, fruits have strong seasonal

characteristics, and four-seasonal fruits are rare, so one or some fruits may be out of

stock in certain periods of the operation

 31

6.6 Marketing Objectives

6,6.1 Market Size

The Fruit salad businesses are not new to the market. The fruit salad market size in

quantity for year 2022 is expected to be 540, 000 units of 200 grams salad. For the

year 2023, there is an increase of 2.17% which results to 551,718 units of fruit salad.

The projected market size in quantity for the year 2024 is estimated to be 563, 966

units.

The market size of fruit salad business in Cagayan de Oro is calculated to accumulate

a total of Php 10,800,000 for the year 2022. For the year 2023, it is expected to have

a market size of Php 11,034, 360. For the year 2024, the projected market size is

calculated to be Php 11, 277, 116.

6.6.2Market Share Objectives

The calculated market share in quantity of D’fruitery for the first year until the third

year is 3.33%. The market share in Pesos from 2022 to 2023 is calculated to be

5.833%. There is a very slight increase for the year 2024 which has a market share in

Pesos of 5.84%.

6.6.3 Sales Objectives

The business has projected sales of Php 630,000 for the first year of business

operation. For the second year, there is an increase of 2.17% from the previous year
 32

which results to Php 643, 650 sales projections for year 2023. Lastly, the business is

expected to have a total sales of Php 657, 930 for the year 2024 with an increase of

2.22%.

6.6.7 Financial Objectives

6.7 Product Positioning

The business owners decided the product positioning for Fruit bits.

Fruit bits every day for a healthier day.

The owners came up with the idea to position the product as a part of a meal to

complete their healthy diet.

6.8 Marketing Strategies and Marketing Mix and Marketing Tactics

Product Strategy

Fruit salad is made from pure, fresh and naturally grown watermelon, papaya, apple

and banana fruits. We will not use any artificial sweetener but instead an all- natural

sugar substitute. It has a delicious and delightful taste. Each cup of our salad offers a

lot of health benefits for our customers at an affordable price thus, making their

money worth spending on.

Place/Distribution Strategy
 33

Our business will be having its first store at Lapasan Plaza market. We will not place

our store at roadside locations as we promote healthy beverage and we don’t want

our product to be exposed on different toxins and smoke coming from the vehicles.

We will operate on a safe and clean environment.

Price

The business will use the Cost-plus pricing strategy to calculate for the price of fruit

salad. The price will be set based on the production cost, including both direct and

indirect cost at our projected sales volume, and our standard mark-up. Our product

is competitively priced and is very affordable for consumers to buy. Taking into

account the extreme health benefits our product can offer, we are very sure that

their money will be worth spending on consuming our product and making it as a

staple on their healthy diet.

Projected market price for the fruit salad will start at P35/Cup Compared to the

average price of the competitor’s products around P20 per 200 grams or 100 per

kilo.

Promotion strategy/Sales Promotion

In- store Sampling

We will be conducting sampling program at Lapasan market plaza and at the same

time, giving away fliers and encouraging them to visit and try to buy the product. An

ample amount of fruits are prepared once a week every 12 noon.

Exposition/ Trade fair

 34

We will join trade fairs to increase awareness of the existence of our business. This

would also give us the chance to showcase our product. We will offer free taste of

our product and we will also sell our product if people would love to buy. We will

also have the chance to be seen and known by a lot of by-passers. 

Public Relations

Social Media

We will integrate social media pages like Facebook, Instagram, and TikTok accounts

and post daily interactive posts between 9 am until 9 pm so we can create dynamic,

measurable ways to engage the community and drive bottom-line results. We will

often post interesting information about our product, entertaining stories,

comments to continually draw interest from consumers.

Direct Marketing 

For future marketing initiatives, we will advertise from Television, Newspapers and

Magazines to advertise our product. Our existence as well as the health benefits of

the product will be the main focus of the advertisement.

We will uphold rules and regulations in the workplace such as greeting of customers to the

standard 

People Strategy
 35

We will conduct training programs to help improve customer service. The employed will also

gain several benefits such as bonuses and incentives to improve productivity and encourage

sales promotions. 

Process Strategy 

procedures in the production process. Notes will be printed and posted within the corners of

the workplace in order to increase standard procedure awareness.

Physical Evidence Strategy

The crew will help create good dining ambiance by wearing matching uniforms with name

tags and indicated positions. Since the fruits are the major product offer, the stall and its

design will incorporate a colorful vibe similar to the fruits that we offer.

Philosophy Strategy

Our business vision and mission statement will be made available through brochures and

small layouts that are posted within the workplace. Instead of a short slogan, we will create

and provide customers about our value proposition statement so that they will understand

the purpose and position of the business.

QSPM Alternative Strategies

There are two strategies that scored higher attractiveness. D'fruitery will keep track of its

marketing strategies and decides when to utilize the generated alternative strategies.

Market Penetration
 36

D'fruitery as a startup business is challenging for it to overcome market penetration on its

early operations. However, increasing the market share of the business is possible around

the second and third year of its operations. Therefore, D'Fruitery will increase its marketing

activities for the first year operations.

Value Adding of more Products

Another alternative strategy generated is to provide more value adding to the products. This

strategy is also incorporated with market penetration as it helps increase brand awareness

and product differentiation. 

6.9Marketing Research

D'fruitery will analyze the current development status and existing problems of the fruit

salad industry through the assessment of existing trends and issues, so that the marketing

strategies can be implemented.  Through marketing research, it is expected to help solve

marketing issues the entrepreneurs may face.

6.10 Marketing Expenses

The table below are assumptions that are raised to serve as the foundation in the

marketing expenses of the business. The company allots Php 3, 000 of its marketing

expense for the video marketing which will be released in all social media accounts

and website of the company. Online advertising and internet subscription is also

given huge part since most of the people are spending time in social media. The

business allots Php 2,500 Customers and potential customers are also catered with
 37

business card, posters, and in-store sampling with allotted budget of Php 1,000, Php

1,500, and Php 2,000 respectively.

6.11 Controls

6.11.1 Marketing Organizational Chart

Marketing Manager

The role of a Marketing manager is to plan and oversee a broad range of activities,

including launches, advertising, email campaigns, events, and social media. He/she is

responsible for managing the promotion and positioning of a brand or the products

and services that the company sells.

 38

Marketing Strategies Officer

The marketing strategies officer works with the marketing team member(s) to assure

the execution of high-quality marketing strategies within the defined time frame. 

He/she takes full responsibility for setting specific objectives toward developing an

overall marketing strategy that drives profitability, brand consistency, and overall

market growth. 

Marketing Assistant

Marketing assistants support the work of marketing managers and officers on

projects directed at maximizing company profits and developing sales strategies or

marketing campaigns. Marketing assistants are responsible for compiling and

distributing financial and statistical information.

6.11.2 Implementation

The functional tactics for the implementation plan focus on activities that can be

accomplished as soon as possible. D'fruitery will separate each strategy recommended and

develop upon them immediately. In the 8 marketing strategies, D'fruitery will analyze cost

and differentiation of the current markets and provide feedback of the current conditions. In

addition, D'fruitery will analyze the current market for necessary changes or value additions

that may be necessary for growth. The alternative strategy generated in the QSPM will focus

on operating the current market while finding new markets to move into.
 39

6.12 Contingency Plan

RISK MITIGATING FACTORS

Value adding according to current youth trends
Lack of young customers
Expert technical assistance available for youth, to
encourage
healthy diet and fruit consumption

Regular customer feedback 

Low Sales Diversified product mix

Proven demand for products
Options to reduce expenses, if necessary

Difficulty in attracting Include various employee benefits such as SSS,

suitable staff Philhealth

Establish communication  with local schools provide

to pipeline for new staffs or gradutes of business
courses.

Operational problems,
poor fruit quality Access to high end professionals who will help to
assess product quality
Consistent checking of fruits after delivery
Regular customer feedback

Marketing problems,
regulatory barriers and Achieve a healthy product and clean work environment
costs
Require staff to apply clean  food handling strategies

Implement a working policy both staff and managers

 40

7.0 TECHNICAL AND PRODUCTION PLAN

4.1 Product Technical Description

Fruit salad is a dish consisting of various kinds of fruit, sometimes served in a

liquid, either their own juices or a syrup. In different forms, fruit salad can be served

as an appetizer, a side salad, or a dessert. When served as an appetizer or dessert, a

fruit salad is sometimes known as a fruit cocktail (often connoting a canned product),

or fruit cup (when served in a small container).

There are a number of home recipes for fruit salad that contain different kinds

of fruit, or that use a different kind of sauce other than the fruit's own juice or syrup.

Common ingredients used in fruit salads include strawberries, pineapple, honeydew,

watermelon, grapes, and kiwifruit. Various recipes may call for the addition of nuts,

fruit juices, certain vegetables, yogurt, or other ingredients.

4.2 Technology

Making fruit salad is simple. There are no advanced technology used in making

FreshBits. Some food technology food preservations are used to maintain the

freshness and quality of the fruits. One of the four ingredients of FreshBits is apples

which are known to discolor when peeled and exposed to air. Food technology

comes up with a treatment for fruit discoloration using ascorbic acid or citric acid

and water. The discoloration of the fruit affects the customer’s perception of the
 41

freshness of it. It is important to prevent fruits from discoloration to keep its

freshness and good appearance.

4.3 Production Process

To make the fruit salad, materials fruits are prepared to make sure all needed things

are in tacked. Materials are washed thoroughly before it makes contact with the

fruits. The person who makes the salad will prepare to wear its apron, masks, and

gloves. Next, freshly arrived fruits are then washed with cold water to remove any

dirt and residue. Peeling and seeding the fruits are next before cutting it into bite

size cube or any shape. The cut fruits will then be tossed and sprinkled tiny bit of

citrus juice to prevent from discoloration and to add a kick of a flavor to the fruits.

START COLLECT COLLECT ROUTINE MANAGEMENT

FRUITS/SELECT EQUIPMENT/PREPA
ESTABLISH *PUT ON APRON
FRUITS RE MATERIALS
SUPPLIER *WASH HANDS
CONNECTION
*WASH FRUITS

*PREPARE MIXING BOWL

*PEEL FRUITS
FINISH PREPARE *CUT INTO BITE SIZE
PACKAGING
 42

4.4 Plant Size and Production Schedule

On its initial year, the monthly production will be 1,500 pieces of fruit salad at 30

days operation per month. The details on production schedule are shown in the

table. 50 pieces of fruit salad are produced a day with 12 hours of operation per day.

Years of operation estimated production volume pieces

1st year 18,000
2nd year 18,390
3rd year 18,798

4.5 Machines and Equipment

The proposed project will be acquiring the only one equipment which is the chiller to

preserve the fruits. As a small business, it will purchase a small chiller for Php 11,000.

The chiller is also used to display pre-packed fruits for on the go customers. Straight

line depreciation method is used to come up with annual depreciation of Php 600.

Equipment Purchase Cost Lifespan Annual Useful years

Depreciation
Fruit/Display Php 11,000 25 years 5.4% = Php 600 10 years
Chiller

4.6 Plant Business Locations

 43

The proposed business will be located at Brgy. Lapasan Cagayan de Oro City.

Barangay Lapasan is strategically located in the eastern part of Cagayan de Oro City.

It is where most of the business districts are located. The vicinity of Lapasan is

considered to be essentially urbanized. It literally represents Cagayan de Oro as a

continuously developing city. It is a perfect location for new business ventures.

Specifically, the Barangay plaza has the most number of people in a daily basis. Not

only is the certain area near the elementary and high school, it is also accessible for

vehicles passing by the highway. Found in the Appendices is the map of Cagayan de

Oro locating the center of Barangay Lapasan where D’ Fruitery will operate.

4.7 Building and Facilities

The company decided to rent a small space that will serve as the storage facility as

well as the selling store of the company. Since the company will rent a space, there

will be no expenses for any construction of buildings before the business operation.

The rent expense covers the electricity and the water expenses.

4.8 Plant Layout/ Store Layout

The plant layout or in our case store layout is designed to maximize small area for

space efficient operation. The store also serves as the storage facility of the

company. Due to this matter, the owners designed to make the area and maximized

the space to cater the selling and the storage of the products. Attached in the

Appendices is the store layout that also serves as the storage facility layout.

4.9 Utilities
 44

The company use water and electricity during the operation. The table below shows

utilities and the specifications needed. The company’s utilizes are covered by the

rent expense per month.

Utilities Uses Unit cost Availability Sources

Water Washing the fruits and Covered with the Through water Local water
materials needed. rent expense distribution lines distribution company

Electricity For the chiller and Covered with the Through electrical Local electric power
lights rent expense distribution lines company

4.10 Waste Disposal

Most waste from the operation is biodegradable such as fruit peels and fruit scraps.

The company initiates to have a compost pit for the waste to be converted. In

making the compost, the company needs labor for maintenance. The compost

material will be sold.

 45

8.0 FINANCIAL PLAN OF THE AGRI ENTERPRISE

8.1 Summarized Profit and Loss Statement

The result of the statement of projected profit and loss shows that D’Fruitery will

accumulate a net profit of Php 97, 328 after 12% of tax for the year 2022. For the

year 2023, the business is projected to earn a net profit of Php 101, 583.68 after 12%

of tax. Finally, a Php 106,035.78 after tax is projected to be earned for the third year

of business operation.

8.2 Summarized Statement of Financial Position

The calculated statement of financial position of D’fruitery for the year 2022 has

total assets of Php 693, 500 which is balance with the business liabilities and owner’s

equity. The financial position for the second year has total assets of Php 841, 578

which is the same with the total liabilities and owner’s equity. There is a great

increase in amount due to the forwarded profit from the previous year. For the final

year, the total asset is Php 1,008, 041.68 which is also the sum of liabilities and

owner’s equity.
 46

8.3 Summarized Statement of Cash Flows

The cash and cash equivalents at the end of the first year of D’fruitery is Php 86, 928.

For the end of second year, the total cash equivalent is Php 102, 183.68. Lastly, year

2024 has a cash equivalent of Php 106, 635.78 for the end of the year.

8.4 Payback Period

The payback period of the initial investment for the first year is 0.38 which means

that the business will earn the Php 33,500 initital investment in approximately 4

months of operation. The second year of business will have a 0.29 payback period

which means that the business will earn the Php 30,000 investment for the second

year in approximately 3 months of operation. Lastly, the payback period for year

three is calculated to be 0.28 which means that the business will earn the Php 30,000

investment for approximately 3 month.

8.5 Overall Breakeven Analysis

The breakeven point in quantity of D’fruitery is 9, 081 which means that the

business needs to sell 9, 081 units of fruit salad to cover up the fixed cost that are

spent. If the business can sell more than 9, 081 units of fruit salad, then the business

is making profit.
 47

8.6 Return on Investment

The return on investment of D’Fruitery from their initial investment of Php 33, 500

for the first year is calculated to be 290. 53%. For the second year of business

operation, it is expected to accumulate a 338.61% from the Php 30,000 investment.

The third year of Php 30, 000 investment will accumulate a 353.45% of return. It is

observed that there is an increase in return of investment as the year’s progress. It is

a hopeful sign to invest in this business and continue the operation.

8.7 Net Present Value Analyses

The result of the net present value calculation is a positive Php 107,861.81 which

means that the investment is profitable and it is worth investing. The initial

investment has a total amount of Php 93, 500. The internal rate of return is

calculated to be 85.2%

8.8 Financial Ratio Analyses

8.8.1 Profitability Ratio Analysis and Interpretation

The return on assets of the business is calculated to be 14.03% which means that for

every one Peso asset, there is 14.03% of return for year 1.

A net profit margin for year 1 was also calculated and is it equivalent to 35.43%

which means that there is a 35.43% of net income generated for every revenue

received.

8.8.2 Liquidity Ratio Analysis and Interpretation

 48

The current ratio for year 2022 of the business is 1.45 which means that the for

every one peso liability, the business has 1.45 pesos of asset that can be used to pay.

The current ratio results show that D’fruitery is capable of paying the business

liabilities by using the business assets.

8.8.3 Asset Utilization Ratio Analysis and Interpretation

The asset utilization of business for year 1 is calculated to be 94% which means that

for every peso of assets, the business was able to generate 0.91 pesos in revenue.

The business is hopeful to be more efficient with every assets owned to generate as

much revenue.

8.8.4 Debt Utilization Ratio Analysis and Interpretation

The debt utilization ratio f the business is 68.1 or 68.1% which means that the debt

of the business is lower than the asset. The business has a high debt utilization ratios

because the owners find it expensive to borrow money since the business is still

starting.
 49

9.0 CONCLUSION

The proposed feasibility may form the basis of a significant investment decision and

in order to achieve this objective, the document covered various aspects of Start-up,

Production, Marketing, Finance, and Business Management. The feasibility is based

on the information obtained from various agricultural sources as well as discussions

with business man/woman in the region. For financial the aspect, since the forecast

and projections relate to the future periods, the actual results are likely to change

because of the events and circumstances that the study cannot control. However,

care and attention has been adapted in the study, with the hopes that no liabilities

can be deduced or any inaccuracy that the results will report. It is important that our

report is read entirely, pointed specifically with the financial model in order to fully

grasp the impact of major key assumptions of the range of values that was used in

the study. The market is accessible and has the necessary infrastructure such as

road, network tower, water, and electric power. The proposed project clearly

identifies all the necessary equipment, inputs, organization and management of the

company and the required manpower. The highest authority in the project will be

granted to the general managers. He/she will control the overall activities of the

proposed project. Demand projection discloses that there is high demand for fruits

as population rises in the region. Accordingly, the proposed study is set to provide

quality fruit products in the area. The proposed study possesses a wide range of

economic and social benefits such as increasing the level of investment, tax revenue

and employment creation for both women and youths. In general, the project is
 50

technically feasible, financially and commercially viable as well as socially and

economically acceptable. Hence the feasibility study is worth implementing

 51

10. RECOMMENDATIONS

From the previous presentation of the study, there are multiple recommendations

from the panel. The researchers have noted the recommendations. It was

recommended that the product should include more than the 4 kinds of fruits. It was

suggested that vegetable, other fruits and add-ons should be included to our product

offering. With that, the researchers anticipated a major revision to the paper which

is a huge risk in the time management of the completion of the final paper. The

recommendations of the panel are excellent but it may not be feasible due to time

and budget constraints. The researchers planned that they will still integrate the

recommendations but will be applied to the future operation of the business.

Another recommendation is to pay attention to the current updates of the pandemic

to adjust and make plans for the future preparations. Plans such as selection of

strategy to be implemented are important to capture customer’s attention. There

might be a drastic changes in the economy for the next years and some of the

assumed data included may not be acceptable, it is recommended that the use of

this study should be specific only in the current time and current event.
 52

11.0 REFERENCES

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ResearchGate.
https://www.researchgate.net/publication/311067359_The_Philippine_Fruit_Indust
ry_An_Overview

THE STATUS OF THE FRUIT INDUSTRY IN THE PHILIPPINES. (2018). Food and Fertilizer
Technology Center. https://www.fftc.org.tw/en/publications/main/1911

Aldaba, R. et al.(2010) ERIA Study to Further Improve the ASEAN Economic

Community Scorecard: the Philippines.

Ali, I. and E. Pernia (2003), “Infrastructure and Poverty Reduction – What is the
connection?” ERD Policy Brief No. 13 Asian Development Bank.Carrere (2006).

Paubayon, I.
(2015).Https://www.researchgate.net/publication/24110797_Fruits_Program_Area_
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12, 2020,
fromhttps://www.researchgate.net/publication/24110797_Fruits_Program_Area_Re
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Filipinos need more Fruits and Vegetables . (2016, July 27) Retrieved from
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Capanzana, M. FRUITS AND VEGETABLE FOR HEALTH: The Health and Nutrition Situation
of the Philippines. Retrieved from
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ilippines_F_V_for_Health.pdf

Jennings, K. (2018). Top 9 Health Benefits of Eating Watermelon. Retrieved from

https://www.healthline.com/nutrition/watermelon-health-beefits
 53

Bjarnadottir, A. (2018). 11 Evidence-Based Health Benefits of Bananas. Retrieved from

https://www.healthline.com/nutrition/11-proven-benefits-of-bananas

Jennings, K. (2018). 10 Impressive Health Benefits of Apples. Retrieved from

https://www.healthline.com/nutrition/10-health-benefits-of-apples

Spritzler, F. (2018). 8 Evidence-Based Health Benefits of Papaya. Retrieved from

https://www.healthline.com/nutrition/8-proven-papaya-benefits

Boosting Family’s Health with Fruits and Veggies (2019, November). Retrieved from
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times/parenting/boosting-familys-health-with-fruits-and-veggies/653653/

Miller, B. Et al. (2016). Availability, affordability, and consumption of fruits and vegetables in
18 countries across income levels: findings from the Prospective Urban Rural Epidemiology
(PURE) study. Retrieved from
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Preserving Color and Preventing Browning of Foods. (July 2018). Retrieved from
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How to Register a Partnership Business in the Philippines: A Basic Guide. Retrieved from
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Starting a Partnership or Corporation in the Philippines. (January 2019). Retrieved from

https://www.myoffice.com.ph/2019/01/09/starting-a-partnership-or-corporation-in-the-
philippines/

Introduction to Financial Management. Retrieved from

https://courses.lumenlearning.com/boundless-business/chapter/introduction-to-financial-
management/

Production Manager. Retrieved from https://www.prospects.ac.uk/job-profiles/production-

manager

Procurement Manager Job Description. (September 2019). Retrieved from

https://www.betterteam.com/procurement-manager-job-description
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12.0 APPENDICES

D’ Fruitery’s Statements of Projected Profit and Loss

January 2021- December 2021
In Philippine Peso
Year 2022 Year 2023 Year 2024
Total Revenue 630,000 (100%) 643, 650 657,930
LESS: Cost of Goods Sold 406, 800 (64.57%) 415,614 424,834.8
(64.57%) (64.57%)
Total Gross Profit 223. 200 228, 036 233, 095.2

LESS: Expenses
Rent & Utilities Expenses 42,000 42,000 42,000
Transportation Expense 30, 000 30, 000 19,200
Supplies 30, 000 20,000 20,000
Marketing Expense 10,000 20, 000 20, 000

Depreciation 600 600 600

Total Fixed Cost 112, 600 (17.87%) 112, 600 112, 600
Net Profit (Loss) before 110, 600 115, 436 120, 495.2
Tax
Less: 12% Tax 13, 272 (2.1%) 13, 852.32 14, 459. 424
Net Profit (Loss) after 97, 328 (15.45%) 101,583.68 106, 035.78
12% Tax
Appendix A. Statement of Projected Profit and Loss
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Appendix B. Statement of Projected Financial Position

D’ Fruitery’s Statements of Projected Financial Position

January 2021- December 2022
In Philippine Peso

Assets
Current Asset
Cash 630,000
Supplies 52, 500
Total Current Asset 682, 500
Noncurrent Assets
Equipment 11,000
Total Noncurrent Assets 11,000
Total Assets 693, 500

Liabilities
Current Liabilities
Rent Payable 42,000
Supplier Payable 99,000
Packaging Expense 135,000
Hygiene Expense 41,400
Salaries Expense 131,400
Tax Expense 13, 272
Marketing Expense 10, 000
Total Liabilities 472072
Owner’s Equity
Retained Earnings 187, 928
Initial Capital 33,500
Total Owner’s Equity 221428
Total Liability and Owner’s Equity 693, 500

D’ Fruitery’s Statements of Projected Financial Position

January 2022- December 2023
In Philippine Peso

Assets
Current Asset
Cash 841, 578
Total Assets 841, 578

Liabilities
Current Liabilities
Rent Payable 42,000
Supplier Payable 101, 145
Packaging Expense 137, 925
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Hygiene Expense 42, 297

Salaries Expense 134, 247
Tax Expense 13,852.32
Marketing Expense 20, 000
Total Liabilities 491, 466.32
Owner’s Equity
Retained Earnings 320, 111.68
Initial Capital 30,000
Total Owner’s Equity 350, 111.68
Total Liability and Owner’s 841, 578
Equity
D’ Fruitery’s Statements of Projected Financial Position
January 2023- December 2023
In Philippine Peso

Assets
Current Asset
Cash 978, 041.68
Supplies 30,000
Total Assets 1, 008, 041.68

Liabilities
Current Liabilities
Rent Payable 42, 000
Supplier Payable 103,389
Packaging Expense 140, 985
Hygiene Expense 43, 235.4
Salaries Expense 137, 225.4
Tax Expense 14, 459.2
Marketing Expense 20, 000
Total Liabilities 502,294
Owner’s Equity
Retained Earnings 475, 747.68
Initial Capital 30,000
Total Owner’s Equity 505, 747.68
Total Liability and Owner’s 1,008, 041.68
Equity

Appendix C. Cash Flow Statement

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D’ Friutery
Cash Flow Statement
In Philippine Peso
2022 2023 2024
CASH FLOW FROM OPERATING ACTIVITIES
Net Earnings 630,000 643, 650 657, 930
Depreciation 600 600 600
COGS (406,800 ) (415, 614) (424, 834.8)
Operating Expense (112,600) (112,600) (112, 600)
Tax (13, 272) (13,852. 32) (14,459.424)
NET CASH FLOW FROM OPERATING
97,928 102, 183. 68 106, 635.78
ACTIVITIES
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Equipment (chiller) (11,000) 0 0
NET CASH FLOW FROM INVESTING
(11,000) 0 0
ACTIVITIES
Cash Flow from Investing Activities 0 0 0
CASH AND CASH EQUIVALENTS, END OF
86,928 102, 183. 68 106, 635.78
PERIOD

Appendix D. Payback Period

Formula In Php Payback Period

Initial Investment 33, 500
Year 1 0.38
Net Cash Flow Per Period 86, 928
Initial Investment 30,000
Year 2 0.29
Net Cash Flow Per Period 102,183.68
Initial Investment 30,000
Year 3 0.28
Net Cash Flow Per Period 106, 635.78

Appendix E. Net Present Value and IRR

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Year Investment 2021 2022 2023

(93, 500) 86,928 102, 183. 68 106, 635.78

Discount (1+10%) (1+10 %)2 (1+10 %)3

Rate
Net Present Value Php 107,861.81

Internal rate of return 85.2%

Appendix F. Break Even Analysis

Break Even Analysis of D’ Fruitery

Fixed Cost 112, 600 Breakeven point in Quantity
(Sales price per unit – cost price per unit) (35-22.6) 9, 081
Breakeven Point in Sales
BEP in Q X Price per unit 9,081 pieces =X Php 35
Php 317, 835

ROI of D’ Fruitery for 2022-2024

Net Income 97, 328
X 100 290.53% YEAR 1
Investment 33,500
Net Income 101, 583.68
X 100 338.61% YEAR 2
Investment 30,000
Net Income 106, 035.78
X 100 353.45% YEAR 3
Investment 30,000
Appendix G. Return on Investment

Appendix H. Sales Objectives

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D’ Fruitery’s Sales projection of Total Products produced for year 1 is 18,000 and is

multiplied by the Product price which is Php 35.

YEAR 2022 2023 2024

Total Products 18,000 18, 390 18, 798

Produce per year
Total profit 630,000 643, 650 657, 930
% Increase 2.17% 2.22%

Appendix I. Market Size in Pesos

The Fruit salad business in the region is estimated to be P10,800,000 in pesos for the

year 2022. And the business is expected to reach P11, 277,116 in three years time.

However, providing the business is successful, there is no reason to expand to other

regions if the market growth shows an increase for the course of three years.

Year
Market size 2022 2023 2024
In Pesos Php10,800,000 Php 11,034,360 Php 11,277,116
Market size in
540,000 pcs 551, 718 pcs 563, 966 pcs
quantity
(200 grams/pc) (200 grams/pc) (200 grams/pc)

Market Growth - 2.17% 2.22%

Appendix J. Market Size in Quantity

As of preliminary informal interview with a saleslady in SM downtown supermarket,

we found out that the store sells an average of 75 pcs per day of their packed fruits
in a container. Assuming that all the considered competitors also have the same
average product sold we calculated the market size in quantity and in Pesos. The
market size in quantity for fruit salad in Cagayan de Oro is presumed to be 540,000
pcs of 200 grams of fruit salad per year. That is approximately 108,000 kilos of fruit
in a year. For the market size in Pesos, the average price per 200 grams of fruit salad
is P20 which is multiplied to the market size in quantity to get P10,800,000 pesos for
the year 2021.

Year
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2021 2022 2023

Average fruit
salad 540,000 pcs 551, 718 pcs 563, 966 pcs
consumption (200 grams/pc) (200 grams/pc) (200 grams/pc)
per year
Difference 2.17% 2.22%

Appendix K. Market Share

Year 2022 2023 2024

Market Share 3.33% 3.33% 3.33%
in Quantity
Market Share 5.833% 5.833% 5.834%
in Pesos

To get the market share, the projected sales in quantity will be divided by the market
size in quantity. To get the market share in Pesos, he projected sales will be divided
by the market size in Pesos.

Appendix L. Financial Ratio

Return on asset = (Net Income / Total Assets) 100

= (97328/ 693,500) 100

= 14.03%

Net profit margin= (revenue-cost)/ revenue

= (630000-406800)/630000

=35.43%

Current Ratio = current assets/ current liabilities

= 682, 500/ 472072

= 1.45

Asset Utilization ratio= revenue/ total assets

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=630,000/693,500

= 0.91

Debt utilization ratio= total debt/ total assets

= 472072/