FS Kakanin Feasibility Study Ana Adona 2018

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QUEZONIAN EDUCATIONAL COLLEGE INC.

Business Administration Department
CHAPTER I
THE PROBLEM AND ITS SETTING
A. INTRODUCTION
Filipinos can be proud of what we can offer to other nationalities. We are proud of the
beautiful places in our country, our delicious dishes and our very own native delicacies or much
better known as "kakanin". Filipinos love rice and because of that they enhance the way it is
prepared and transform this into a delicious and colorful "kakanin" which serve as our snacks.
Filipinos love for kakanin traced way back pre- colonial time where our ancestors used suman as
offer to visitors. Kakanin has its own unique quirky names such as biko, puto, sapin- sapin,
suman, kutsinta, maja and palitaw. The present generation may continue to cultivate special taste
of kakanin which we can remain to be proud of.
Nowadays Filipino Native Delicacies (kakanin) becomes unpopular because there is less
producer of the kakanin. The researcher decided to pursue the feasibility study of setting up a
Filipino Native delicacies (kakanin) production business to promote our very own kakanin and to
make it alive in the heart of the Filipinos.
Kakanin is one of the favorite snacks of the researcher and her passionate interest on
kakanins motivated her to pursue this kind of business. The researcher wants to enhance the way
it used to be; the way of serving and the packaging. The researcher also believes that it is
profitable and it can attract customers because of the affordable price.
The researcher decided that the proposed Filipino Native delicacies (kakanin) business
will take place at Doña Aurora St. Atimonan Quezon since the researcher lives in that area she
believes it is the best place to promote kakanin until these become well- known to Atimonanins.
The researcher also plans to put small branch of her business at Atimonan Zigzag Park and
Atimonan Grand Terminal where she can distribute her products. The chosen places are the best
place to catch the attention of tourist and passengers who’s having stop over to buy “pasalubong”
for their love ones and to buy something that they can eat.
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B. SWOT ANALYSIS
 STRENGHTS
 The kakanin Business has low startup cost.
 The kakanin raw materials are easy to find and to provide.
 The kakanin business is providing a high quality and best tasting snack at an
affordable price
 The kakanin business can produce variety of snacks.
 Kakanin products can transform it into a new look and attractive snacks that
are more presentable than the traditional ones. Through that the researcher
can get the attention of the customers and shall be the reason of sales
increase.
 The kakanin business will accept orders and provide them quality, tasteful
and delightful snacks in every occasion.
 WEAKNESSES
 The kakanin products can be affected due to changing price of the
ingredients needed.
 The product cannot have prolonged the shelf- life for a week because it
changes the taste and quality of the product.
 It cannot also store at hot temperature which can cause spoilage of

products.
 OPPORTUNITIES
 The people nowadays want an affordable snack for their family and
kakanin products are suitable on their preferred budgets.
 The customers or consumers demand for snacks is expected to rise due
to increasing population and kakanin products are fit for those consumers
who want to save money.
 The kakanin business increases the interest of the people in buying
kakanin as their snacks.
 THREATS
 The competitors have already established a name on the market.

 The existing kakanin producers have already captured the major portion
of the market.
 Changing taste and preferences of customers in terms of choosing a
snack will affect the market of traditional kakanin products.
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C. LOCALE OF THE STUDY
The locale of the study is around town proper of Atimonan Quezon. Atimonan is
one of the Municipality of fourth district, in Quezon Province. It consists of 38 Barangays
and 4 Poblacions. It is a rural place where most of the people are farmers and fishermen.
There are some small businesses and establishments where we can find at the center of
the town proper. The researcher decided that the store will be located at Doña Aurora St.
Zone 1 Poblacion which is accessible and near from the schools and church. The
researcher also considered Atimonan Zigzag Park and Atimonan Grand Terminal as her
places where she can put small branch of kakanin busniness.
It is appropriate location on this kind of business where a lot of people are passing
by because of that there are more chances of sales. The researcher thinks it is the best
location where the proposed kakanin business is suitable to become profitable.
D. STATEMENT OF THE PROBLEM
 General statement
Filipino Native Delicacies (kakanin) look simple and easy to make. It is made of
rice, sweet rice and usually made with coconut and coconut milk. The plastic wrappers
are now gracefully stuffed in polystyrene foam. The simple kakanins can be enhance and
transform into more appealing snacks that can get the attention of perspective customers.
The researcher decided to pursue the feasibility study of setting up a kakanin business to
promote the variety of kakanin, on the other side turned out to be a profitable venture for
the home based entrepreneurs.
 Sub-Problems
The researcher aims to determine the following aspects of the feasibility study of
setting up Filipino delicacies (kakanin) business in Atimonan Quezon
 Marketing Aspects
 The marketing aspect covers general conditions, competitors and pricing
conditions for the proposed business.
 The profile and size of the possible potential target market for the
kakanin business.
 The price strategy for the business which can help the researcher to
determine if the product will penetrate the target market.
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 The appropriate promotion strategies that can be used in kakanin

business.
 Technical and Operation Aspects

 The technical covers the location of the business.
 The processes and proper control of the kakanin products.
 The appropriate materials needed for the production of the kakanin
business.
 Organization and Manager Aspects
 The organization and man power needed for this business
 Kakanin business is a home- based type of business there’s no need for a

man power with degree.
 Financial Aspects
 The financial aspect shows the capital and expenses needed in kakanin
business.
 The capital of kakanin business is small even 500 pesos can start this
kind of business.
 In financial aspects the researcher can find out if the business is
profitable or not.
 Contribution to Community
 The social contribution to the community of the Filipino Delicacies
(kakanin) business.
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E. SIGNIFICANCE AND IMPORTANCE OF THE STUDY

This study will help the following persons:
 The Businessmen / Entrepreneurs

This study will help the local businessmen and entrepreneurs to have an
idea and information in case they want to establish a similar business. It serves as
a guideline to form a new concept and ideas how they can enhance their business
that can help them to succeed.
 The Customers
The study will help them to determine how the researcher comes up on
the study and how she made the product and gave a reasonable price for it. This
study can enlighten the mind of the customers that they can also build a
profitable business even they are at home.
 The BSBA Students

This study will give awareness with regards to the reality towards the
path of the business world. It can help them to enhance their knowledge about
business, particularly the kakanin industry.
 The Future Researchers
This study can help them come up with a new study using this paper as a
basis. It can provide information and insights that they can use in building a new
ideas concerning in their chosen proposed business.
 The Researcher
The study will develop the knowledge and skills of the researcher in
terms of business. It will serve us her guideline and pattern in case she wants to
put up business in the future and it also helps her to understand the path of
business that she can use in her chosen profession.
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F. SCOPE & LIMITATION OF THE STUDY

 The study will focus on the Filipino Native Delicacies (kakanin) business such as
sapin-sapin, palitaw, cassava cake, pichi- pichi, suman, maja blanca, puto,
kutsinta and espasol.
 The nature of the business is about producing, selling and accepting orders within
Atimonan Quezon.
 The coverage of this business is up to 3 years financial projections.
 This study selected some Barangays near from the location of the proposed
business. The Zone I Poblacion, Zone II Poblacion, Zone III Poblacion, Zone IV
Poblacion, Barangay Angeles, Barangay Caridad Ibaba, and Barangay Tagbakin
are the selected Barangays where the researcher will gather 100 selected
respondents for the study.
SELECTED BARANGAYS Number of Respondents
Barangay Zone I, Poblacion 16
Barangay Zone II, Poblacion 13
Barangay Zone III, Poblacion 7
Barangay Zone IV, Poblacion 12
Barangay Angeles 9
Barangay Caridad Ibaba 22
Barangay Tagbakin 21
Total 100
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G. CONCEPTUAL FRAMEWORK
Figure1. Research Paradigm
INPUT PROCESS OUTPUT
Market and Industry Profile
 Market Demographic
Profile
 Market Preference Market Feasibility
 Industry Competitiveness
(Analysis of Competition) Feasibility
 Government Regulation Study of

 Market Potential and
Demand
Setting up
Filipino
Native
Technical and Operations
Delicacies Technical
Description (kakanin) Operational
 Location Feasibility
 Production Process and
Business in
Equipment Atimonan
 Supplies and raw Quezon
materials
Organizational and
Manpower and Skills
Requirements Manpower Feasibility
Financial Feasibility and

Capital Requirements
Analysis
Significance to Community Contribution to Community

and Economic Progress Corporate and Social
Responsibilities
Figure 1: Research Paradigm of the Feasibility Study of Setting up Filipino Delicacies (kakanin)
Business in Atimonan Quezon. It demonstrate how the input process to present the business venture as
its output process
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H. DEFINITION OF TERMS1
Biko
The rice cakes from sticky rice, it’s one of the kakanins that
is easy to make.
Coconut milk
It is a liquid that comes from, the grated meat of a brown

coconut. It is use to make a kakanin this kind of liquid
helps to improve the taste of kakanin.
. Kutsinta
It made by mixture of rice flour, brown sugar and iye one
of steamed rice cake.
Maja Blanca
The primarily made from coconut milk also known as

coconut pudding
.
Palitaw
The kakanin that a small flat, sweet rice cake.
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Polystyrene foam
A synthetic aromatic polymer made monomer styrene.

Used as packaging for kakanins.
Puto
A type of steamed rice cake, accompaniment to savory

dishes such as dinuguan or pansit
Sapin-sapin
It is a layered glutinous rice and coconut dessert. Usually
form with different colors.
.
Suman
A rice cake often wrapped in buli palm leaves.
Sweet Rice
Opaque grains, very low amylose content and sticky when
cooked, usually use to cook kakanin one of the primary
ingredients to form a kakanin.
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1
Definition of terms for kakanin
https://www.filipino-food-recipes.com/.../kakanin- native-delicacies
CHAPTER II
REVIEW OF RELATED LITERATURE AND STUDIES
A. CURRENT INDUSTRY TRENDS AND PRACTICES OF

DELICACIES IN EUROPE.
Europe’s offbeat 𝐃𝐞𝐥𝐢𝐜𝐚𝐜𝐢𝐞𝐬 𝟐
Rick Steves went on a European trip
and sampled some very strange dishes,
depending on what strange is for you. How
much you enjoy the food depends on your
attitude remember, “Weird” is subjective.
According to Steves, Delicacies are firmly
rooted on a place’s culture. For instances, the
dutch herring is reflective of the seafaring
history of the Netherlands. Dutch herring is a classic and caught during the may- june
fishing season. It is salt- cured and typically served with raw onions and sometimes even
pickles.
The dutch embrace this vitamin- rich food, this delicacy is something you won’t
forget. It is a dutch speciality, so it’s no wonder that the Broodje haring or a raw herring
sandwich is the national dish of Netherlands. Simply sandwiches, its cold and bit mushy
but it has a refreshing freshness and bite from onions and pickles that it’s a pleasure to
eat.
Trends in snack foods3

As stated by the new market research report on Snack Foods, Europe represents
the largest market worldwide. Demand for healthy and nutritious snack foods is expected
to witness steady growth in these markets driven by their technological strength, presence
of leading product innovating companies, rising health consciousness, and the unified,
aggressive stand to combat growing levels of obesity and other eating disorders. Asia-
Pacific is poised to register the fastest CAGR of 7.2% over the analysis period. The
booming retail sector, increasing penetration of international brands supported by the
shift from traditional food to Western diets, growing trend of gifting snack foods, and
efficient distribution and creative marketing strategies of snack foods companies
comprise the key factors driving the high growth levels in the region.
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Rick Steves (2016) “Strange Food: Europe’s offbeat Delicacies” retrieved on September 13, 2016 from
https://www.ricksteves.com/.../strange-food-europe-offbeat-delicacies
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3
Trends in snack foods “A global strategic business report” retrieved on September 13, 2016 from
http://www.strategyr.com/pressMCP-2223.asp
US4
Florida: Anastasia confection’s coconut patties
A creamy coconut filling with a dark chocolates shell are

a Florida favorite and the most popular item. The soft chewy
chocolate covered patties are bursting with sweet coconut flavor.
These unique treats first began as a Florida tradition, and

have grown to become a nationwide delight. Each patty is made
up a smooth, creamy shredded coconut texture that is dipped in a
rich dark chocolate coating, making a perfect combination. The unique delicious candies have
crossed the state and even the country borders. They are currently carries by several mainstream
retailers across the United States, Canada, and the Caribbian.
Trend in confectionery5
Whilst premium chocolate confectionery has traditionally maintained a relatively small

presence in the US, consumer trends continue to move upscale, as people become aware of
factors such as single-origin beans, cacao content and gourmet flavours. Amongst large
manufacturers, premium-focused Lindt & Sprüngli USA saw strong growth in 2014 and 2015
from its higher-end Lindt and Ghirardelli brands. The company’s value share increased in every
year of the review period, and following its September 2014 acquisition of Russell Stover, the
GBO Chocoladefabriken Lindt & Sprüngli controlled a 10% share of chocolate confectionery in
2015. This premium movement also helped many small batch, artisanal bean-to-bar
manufacturers grow their presence.
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This “craft chocolate” movement of “kitchen counter chocolatiers” has strong momentum
in New York and on the West coast, creating well-known brands such as Mast Brothers or Rogue
Chocolatier. This trend has also opened the door for imported brands such as Baron, Harald and
Nugali, which feature premium products from single-origin beans. This growth at the premium
end of the market helped to drive up average unit prices and overall growth in chocolate
confectionery in 2015.
Competitive Landscape
Chocolate confectionery in the US is largely controlled by two dominant companies – The

Hershey Co and Mars. In 2015 these two companies accounted for a combined value share of
64% across a wide portfolio of brands and categories. No other company (in NBO terms)
maintains a share higher than 4%.
Prospects
The commodity price pressures which forced manufacturers to raise prices in 2014 do not show
signs of abating. Global demand for cocoa will continue to have a strong impact on prices,
particularly as rising incomes in developing nations create higher demand for chocolate. At the
same time, the prices of other inputs, such as sugar, are soaring, as the US government works to
protect domestic sugar producers with deals such as the October 2014 agreement with Mexico to
curtail sugar exports. Hazelnut prices also doubled in 2014, due frost-damaged crops and
continually rising demand for hazelnut spreads. In this environment of rising input costs, further
price increases are expected, with unit prices set to rise by a (CAGR) Compound Annual Growth
Rate of 2% at constant 2015 prices from 2015 to 2020.
4
Business insider (2015) “Best snack in every state” retrieved on September 24, 2016 from
https://businessinsider.com/japanese-best-snack in every state
5
Euromonitor International (2015) “Confectionery in the US” retrieved on September 24, 2016 from
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http://www.euromonitor.com/confectionery-in-the-us/report
B. CURRENT INDUSTRY TRENDS AND PRACTICES OF

DELICACIES IN ASIA.
Japan rice crackers6

Senbei are Japanese rice crackers. They come in a variety
of shapes, sizes, and flavors. Although they are usually
savory, some sweet flavors exist as well. It’s usually
cooked by being baked or grilled, traditionally over
charcoal.
Sweet senbei came to Japan during the Tang

Dynasty, similar to Tang traditional styles, originally often baked in the Kansai area, of which
include the traditional “roof tile” senbei. These include ingredients like potato and wheat flour or
glutinous rice, and are similar to castella cakes. Rice crackers supply small amount of protein and
they’re low fat, which means they can have a place in your healthy eating plan.
Asia Markets7
TOKYO -- It was more than three decades ago that Iwatsuka Confectionery, a little-known snack
producer on the Sea of Japan coast, decided to entrust a struggling overseas company with its
traditional techniques for making rice crackers. Want Want China Holdings and controls about
80% of the Chinese rice cracker market.
The Chinese partner's success has proved a huge boon for Iwatsuka. In fact, the Niigata
Prefecture-based firm reaps much more in dividend revenue from a roughly 5% stake in Want
than from its own operations.Iwatsuka expects group pretax profit to surge 74% on the year to 2.3
billion yen in the year ending March 31, setting a new record for a second straight fiscal year. But
while the company foresees an operating profit of 400 million yen, dividend income from Want
Want will contribute nearly five times that amount, or 1.9 billion yen.
The popularity of Want Want's sembei in China owes to more than their characteristic taste
and texture. For more than three decades. Amid ongoing concerns over food safety in China,
customers are drawn to what they see as a product worthy of their trust
Back in Japan, the sembei market has been in somewhat of a slump. While Iwatsuka sees
operating profit leaping roughly 200% this fiscal year, the 400 million yen figure is still low. And
operating margin will likely come to 2% or so.
6
Shizuora Gourmentr “Japanese rice crackers” retrieved on September 29, 2016 from
https://shizuokagourmet.com/japanese-rice-crakers-senbei-%E7%85%8E%E9%A4%85-the-basics/
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Daichi Mishima (2014) “Japanese rice” retrieved on September 29, 2016” from
http://asia.nikkei.com/Markets/Tokyo-Market/Japanese-rice-cracker-maker-reaps-gold-from-ties-to-Chinese-firm
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C. CURRENT INDUSTRY TRENDS AND PRACTICES OF

DELICACIES IN THE PHILIPPINES
Filipino Delicacies8
Chocolate moron is steamed rice

cake from Abuyog in Leyte. Moron kakanin is a
smoother variety of suman. Chocolate moron is
a sweet tasty treat made of glutinous rice or rice
flour mix, chocolate, sugar and coconut milk. It
is rolled and wrapped in banana leaves then
boiled or steamed.
Usually served as snacks at leyte.
Moron or suman with chocolate mix is

one of the “artisanal” known delicacies and
products one can take home as pasalubong if you have the time and money to travel to different
places in the Philippines. If not, then you have the option to buy them all from just one place,
thanks to a new online store that aims to boost both awareness and sales of Philippine cultural
heritage products: 1780 by SariSaristore.
Filipino Consumers Love a Good Snack9
Snacks are more than delicious treats; they’re big business. While Europe and North
America make up the majority of worldwide snack sales (US$167 billion and US$124 billion
respectively), Southeast Asia’s developing nations are contributing significantly to the category’s
growth, posting 3.6% year-on-year growth compared to 2% globally.
Spending is expected to rise as the region welcomes almost 300 million new consumers
in the next decade; rising income levels and a burgeoning middle class population will fuel
growth in the coming years. To take a sizable bite of the opportunity, it is critical for snack food
manufacturers to align strategies with the growing middle class and consumers’ evolving taste
and health considerations.
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8
Anelle Tanao Juego “Filipino Delicacies find global market” retrieved on September 3, 2017 from
http://business.inquirer.net/182474/filipino-delicacies-find-global-market#ixzz4quymJAwH
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Nielsen Retail Sales “Filipino Consumer Love a Good snack” retrieved on September 3, 2017
fromhttp://www.nielsen.com/ph/en/insights/reports/2014/filipino-consumers-love-a-good-snack.html
Snack as a source of nutrition
There are varying and diverse reasons why consumers snack. For Filipino respondents,
snacking is viewed primarily as source of nutrition (74%). In contrast, Indonesians, Malaysians,
Singaporeans, and Vietnamese rank enjoyment as the foremost reason for snacking, while eight
out of 10 Thai consumers (79%) snack to satisfy a craving. Similar to other consumers in the
regions, snacking is also considered by many as a moment for sharing with family and friends,
giving rise to opportunities to adjust packaging for single serves for snacking in between meals or
family-size packs for sharing.
Taste and health attributes count
Consistent with their demand for nutrition, Filipinos look for beneficial ingredients,
rating fiber as the most important attribute in the snacks they eat (63%). They also care more
about the absence of ingredients than the addition of them, indicating preference for all natural
ingredients (56%) and natural flavors (54%). Their Southeast Asian peers share this preference,
with Indonesians (56%), Malaysians (49%) and Thais (45%) rating no artificial colors as the most
important health attribute, while all natural ingredients is the priority for three in five Vietnamese
consumers (60%), and low salt and no artificial colors top the list for Singaporean consumers
(34%).
Filipinos are the most environmentally conscious consumers along with the Vietnamese.
More than half of Filipino respondents say that it is very important that snacks include ingredients
that are organic and 40% prefer the uses local herbs. Close to half of Vietnamese consumers
(45%) say sustainable sourcing is important.
Fresh (75%), flavorful (65%) and juicy (54%) snacks resonate as the most important
taste/texture attribute in the snacks Filipinos eat.
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D. PRACTICAL TIPS IN SETTING UP A FILIPINO

NATIVE DELICACIES (KAKANIN) PRODUCTION
Tips and Strategies for Starting your own Business 10
There is so much to learn about starting a new

business. There is a lot of preparation and risk involved
in starting out in a new venture. There are a lot of
options available for you to look into, as you start your
venture as an entrepreneur. It takes a lot of courage and
want, to succeed and to create a viable business. There is
no point in creating a business if you are not prepared to
give it your all. The risks involved are far too high, to
take a step into a new business venture light heartedly.
 Create a Business Plan

It is imperative that you create a business plan before you start your venture. A business plan
is like a road map to your success. You will find that there are many different areas that you
should have a firm understanding of. A few examples of this include a Marketing plan,
Equipment list, suppliers list and a list of processes for your daily operations. These are just a few
areas you should be looking into and there is a lot more preparation required for a successful
business.
 Don’t Over Capitalize

The best way to start a business is to start out small and dip your toe in so to speak. The
advantages to testing your market will ensure you do not end up in a hole, with nothing to show.
There are a lot of successful businesses which have started out with a very minimal investment a
great product and a great business strategy.
 Understand the Nature of What you are selling
It is a good idea to enter an area of business where you have experience. The obvious upside
to entering a business that you know a lot about is the rate of failure will be lower. Imagine for a
second that you have a great idea started investing your time and hard earned savings, to find that
you had no idea what you were doing . You may not be able to sustain the business based on your
turnover. A lot of your learning would be now coming from on the job learning, which can be
quite costly.
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If you had experience already around certain areas of the business you were starting, you
would eliminate a large part of the risk. So in basic terms the more you know in advance to your
commencement, obviously the less risk involved. Business is all about eliminating the levels of
risk associated with it. There will always be risk but you must manage it efficiently to succeed.
 Market your Business Effectively
Your business obviously must be marketed to your audience. Now there is no point marketing
to an audience that is not receptive to your product. For instances if your selling men’s business
shoes, you want to market to business men. The chances of selling those men’s business shoes to
truck drivers will be quite minimal.
Once you have identified your market, then it’s time to test different ways of marketing. Most
of the best entrepreneurs try small efforts, in different areas tweaking to maximize results.
Marketing is a complete topic on its own and needs to be looked at very thoroughly if you are to
succeed. In saying this there are some very cost effective ways, available to start marketing your
business.
 Read as Much Literature as you can
If you are dedicated to your success and follow your dreams then you will succeed. We are in
the information age and can access a great wealth of information from basically anywhere. The
best part is a lot of this information is free. We must constantly learn from investing time, in
advancing our knowledge to succeed. Remember that Rome wasn’t built in a day and that you
don’t need to go it alone. Many people have already made the mistakes, you just need to learn
from them and tailor it to your own situation.
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10
Blake Hooper “Tips and Strategies for Starting your own Business” retrieved on September 24, 2016 from
http://articles.bplans.com/tips-and-strategies-for-starting-your-own-business/
E. MARKET STRATEGY FOR FILIPINO NATIVE

DELICACIES PRODUCTION
Starting a Kakanin Business11
Kakanin is well-known Filipino desserts usually serve during special occasions like
birthdays, fiesta, anniversary and Christmas. Occasion will not be special without a kakanin in
one’s dining table.
Even in abroad, kakanin is also popular. Many Ofw’s are still missing to eat our local kakanin.
That’s why many people are thinking to start the kakanin business to meet the demand.
Nowadays, kakanin cannot only be found in streets, but also in food stalls of big malls, bus
stations and pasalubong centers. Before you start your own kakanin business, here are some
business tips to know.
1. Attend trainings and seminars to develop and acquire appropriate knowledge on how to start
the business. Go to DTI or other private institutions conducting the trainings. They can help you
grow the business.
2. Find out the latest technology available that will improve the taste and speed up your kakanin
production. Also, learn the techniques and tips on how to prolong the shelf life of the products so
that it will not spoil easily.
3. Formulate new marketing strategies that will help convince your customers to patronize your
kakanin products.
3 Steps to Plan Money Making Small Business Strategies 12
If you are planning the marketing strategies for your business, it’s a good time to
understand the failures and mistakes you have faced and then go for a strategy which leaves no
margins for error. To establish your business gaining market recognition, understanding, planning
and application of unique yet practical marketing strategies are necessary to recover opportunities
leading to success.
Blueprinting business strategies need superb concentration, understanding with the initial
business situation, evaluation of market competition, stability of mind (to think future profits),
and most importantly about the unique benefits of your services to advertise.
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Food Business “Starting a kakanin business” retrieved on September 24, 2016 from
http://businessdiary.com.ph/13204/tips-in-starting-a-kakanin-business/
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12
Soma Dutta “3 Steps to Plan Money Making Small Business Strategies” retrieved on September 24, 2016 from
http://www.pinoybisnes.com/starting-a-business/3-steps-to-plan-money-making-small-business-strategies/
To begin, such strategies can easily recuperate limited resources to profitable

opportunities just by increasing sales accomplishing its continuity with competitive advantages
over the market. However, to attain such conditions, you should practice competitive ideas before
finalizing it as your marketing strategy.
Points to think before planning strategies for business
With fluctuating market conditions, customer requirements and extremity on competitive

strategies typically stress the marketing strategies gain perfection for its tactical execution
demanding higher sales and profits in the whole cycle. From small business entities to the giant
firms, all crowd in a single line while they are in a surge of making business strategies gaining the
market profitably.
From the fundamentals of marketing strategic solutions, sales, competitive field

implementation, to employment of complex sales solutions, you need to optimize and execute
every possible strand in business to gain success knocking your doorstep. Let’s test out some easy
benefits in blueprinting small business strategies before commencing it in the bigger market scale.
Steps to plan successful money making ideas for your business
Planned marketing strategies are competent enough to sketch establishing benefits for a
small business to run well in a big market scale. It strongly assists you to understand the business
goals as well to develop activities that are competent enough to achieve them. Just chase these
three easy steps before sketching your business:
1) Describe and understand:
You should understand your business’ sketch, target market, product benefits, unique
selling proposition, customer demands & satisfying measures. In this competitive market if you
are looking for success, firstly, you will have to understand your business motive and the services
you want to promote with your business. Think of unique business ideas or just rediscover older
products with newer advantages in order to gain the recognition in the market.
2) Marketing is an investment:
“Look before you leap” is the best format for strategic business in a budget. Marketing
strategies can involve some sorts in advertising such as like flyers, pamphlets, hoarding, SMS
marketing, direct door to door sales, public relations, internet marketing, e-Commerce sites, etc.
Well, when product or business marketing is also an investment think of effective plans that can
easily support your business surprisingly in a short while as well in a long run too.
3) Recurring Process
Fluctuations in a market never bother any strategies made but conquer them brutally at
any time. Chill, if you are careful enough with your strategies gain newer efforts once in every
quarter, there is no such option to fear any sunrise.
20
F. PROCESS INVOLVED IN FILIPINO NATIVE

DELICACIES PRODUCTION
F.1 HOW TO MAKE SAPIN-SAPIN13
Judging from its layered form in three different

colours (and flavours!), sapin-sapin is an
appetizing Filipino delicacy that's worth eating.
Its name was derived from its English
translation meaning ‘layer by layer'. This 3-in-
1 rice cake has made its way to become famous
in all parts of the country and has been one of
the Filipino favourites. It is usually served as
snack in most households and in Filipino
gatherings like fiesta.
Ingredients:
• 3 cups glutinous rice flour

• 1 cup rice flour
• 2 cups sugar
• 4 cups coconut milk
• 1 can condensed milk
• 2 cups ube halaya (purple yam)
• 2 cups macapuno
• 2 tsp annatto powder
• 1 tsp anise extract
13
Entreprenuer staff “How to make sapin-sapin” retrieved on September 24, 2016 from
http://www.entrepreneur.com.ph/tag/kakanin
21
Procedures:
Step 1
Combine the glutinous rice flour, rice flour, coconut milk, condensed milk, and sugar in a mixing
bowl.
Step 2
Equally divide the mixture into three and put it in three separate bowls.
Step 3
In the first bowl, pour the macapuno and mix well.
Step 4
In the second bowl, combine the anise extract and
annatto powder. Mix well.
Step 5
In the third bowl, add the purple yam and mix well.
Set aside.
Step 6
Grease the pan and slowly pour the first mixture (macapuno). Cover it with cheesecloth and
steam for 10-20 minutes until it becomes firm.
Step 7
Pour the second mixture (anise extract and annatto powder) to the first layer. Steam for another
10-20 minutes.
Step 8
Add the third mixture (purple yam) to the second layer. Steam for about 10-20 minutes.
Step 9
When it is fully cooked, top it off with latik (toasted coconut milk crumbs).
Step 10
Cut into small pieces and serve.
22
F.2 HOW TO MAKE PALITAW14
The word ‘palitaw’ is obviously derived from

the Filipino word ‘pinalitaw’ or ‘litaw’,
which means ‘made to float’ or ‘float.’ Those
who are curious would surely be amazed at
how this simple rice treat is made.
Dough made of soaked and ground sticky rice

(galapong) is divided into small pieces and
manually shaped into little balls, which are
then flattened. Those flattened dough pieces
are then plunged into a pot of boiling water.
After a few minutes, expect those would float one by one, an indication that cooking time is
complete.
Ingredients:
• 2 cups of glutinous rice flour

• 1 cup of water
• ½ cup of table sugar
• 2 tablespoons of toasted sesame seeds
• grated coconut
14
Entreprenuer staff “How to make palitaw” retrieved on September 24, 2016 from
23
Procedures
Step 1
Make your dough by combining glutinous rice
flour and water.
Step 2
Scoop a tablespoon or 2 tablespoons of the
created dough. Mold it into a ball before
flattening it using your hands. Do the same with
the rest.
Step 3
Boil some water in a cooking pot. Slowly put the
flattened dough pieces into it.
Step 4
Scoop out each dough as it floats. Set aside to
allow water to properly drip.
Step 5
Dip each cooked dough into grated coconut
before sprinkling with sugar and toasted sesame
seeds.
Step 6
Arrange palitaw in a serving plate and serve or sell.
24
F.3 HOW TO MAKE CASSAVA CAKE15
Cassava cake is one of the popular

traditional Filipino desserts or kakanin
made of grated cassava (kamoteng kahoy or
balinghoy). However, it is also noted for the
usually tedious process of making it
because it is usually difficult peeling
cassava before grating it. But as we all
know, the end product always justifies the
means.
Through the years, different variations in the traditional recipe have been
introduced. For one, there are grated cassava products that can be found in the market
today. Cassava cake is commonly baked these days, which make the cooking process
faster and easier to most of us. But many food enthusiasts insist that the traditional way
of making cassava cake is still much better. For home-based food entrepreneurs who
don’t have an oven or those who prefer the traditional way of preparing this kakanin,
Ingredients:
• 4 cups freshly shredded cassava

• 2 cups of coconut milk
• 1 can of condensed milk
• ¼ cup of macapuno preserve
• Grated cheese
• Banana leaf
• margarine
15
Entreprenuer staff “How to make cassava cake” retrieved on September 24, 2016 from
25
Procedures
Step 1
Put grated cassava in a bowl. Set aside.
Step 2
In another bowl, combine coconut milk, condensed milk, and macapuno preserve (set aside a
little of the preserve as topping). Mix thoroughly.
Step 3
Pour this mixture into the bowl of grated
cassava. Mix briskly and continuously until
creamy consistency is achieved.
Step 4
Quickly heat the banana leaf on open fire.
This will be used to prevent cassava cake
from sticking into the pan. (You may
alternatively use aluminum foil).
Step 5
Pour the creamy cassava mixture on top of
banana leaf in the pan. Cover it with plastic or cheesecloth. Put it into a steamer and cook for
about 30 minutes or until cassava cake gets hard and appear yellowish. (To test if it is already
cooked, prick it using toothpick. If the toothpick comes out clean, cassava cake may be taken out
from the steamer.)
Step 6
Apply the margarine on top of cassava cake, then top with grated cheese and a little of macapuno
preserve.
Step 7
Set aside and let it cool down before serving or selling.
26
F.4 HOW TO MAKE PICHI-PICHI16
Filipinos are big food fans of desserts and other

forms of sweets. And when we say sweets,
delicacies are on top of their list.
One traditional delicacy that can be made into a
business is pichi-pichi. This jelly-like rice cake,
which is believed to have originated in Quezon
province, is famous for its cassava and coconut
combination that can satisfy anyone’s taste buds.
One can never go wrong with it as it can fill up an
empty stomach with just a few pieces. Aside from
its yummy taste, this is also easy to make—
perfect for a startup business.
Ingredients:
• 2 cups grated cassava

• 1 cup white sugar
• 2 cups water or coconut juice
• ½ teaspoon lye water
• ½ teaspoon pandan essence
• 1 ½ cup grated coconut
• 1 cup grated cheese (optional)
16
Entreprenuer staff “How to make pichi- pichi” retrieved on September 24, 2016 from
27
Procedures
Step 1
Combine the grated cassava, sugar, and
water or coconut juice in a mixing bowl.
Step 2
Add the lye water and pandan essence.
Mix well.
Step 3
Pour the mixture into the molded cups or in
a pan. Steam for about 45 minutes to an
hour.
Step 4
Let it cool for about 30 minutes or when it gets firm enough to be removed from the pan.
Step 5
Cut into pieces if it was placed in a pan and then roll over the grated coconut.
Step 6
Instead of rolling over grated coconut, you may simply sprinkle with grated cheese on top
(optional).
28
G. STUDY OF RELATED BUSINESS LOCAL

ENTREPRENUER WITH SIMILAR BUSINESS:
G.1 Bibingkinitan17
Bibingka always awakens

memories of dawn mass in December.
This simbang gabi staple is a Filipino
favorite that has been around for
decades. The old fashioned galapong
style has that distinctive charred taste
from the rice flour cakes wrapped in
banana leaves and baked in palayok
with charcoal.
Sanz started this unique idea

when he eventually thought there was an
imminent need to grow for his business, from beverage kiosk to this native cake.
Bibingkinitan was born. As cute as its name sounds, the business serves mini-sized
yummy bibingka, a soft and moist cake made from 100% rice flour locally known as
galapong.
Bibingkinitan has over 200 locations in key cities and towns nationwide. It also has plans
for overseas expansion, particularly in Singapore, Jakarta, Hong Kong, and Las Vegas in
the US. This makes the company the country’s biggest bibingka franchise.
Being in the business for eight years now, Bibingkinitan has already earned numerous
awards and recognitions. It was recipient of the Best in Franchise Support award from the
annual Entrepreneur Franchise Awards in 2007. The company was also recognized for
three consecutive years by the same award-giving body from 2008 to 2010. Bibingkinitan
is the country’s leading bibingka chain today in terms of revenue and store number. It’s
also our bestselling brand. FoodAsia presently has a workforce of almost 100 employees
and occupies a 100square meter office in Muntinlupa City. Both Tea Square and
Bibingkinitan have begun franchising, with its combined 20 franchised outlets
comprising roughly 25% of the current total stores
Christele J. Amoyan (2014) “Bibingkinitan: Bibingkinitan of bite” retrieved on September 29, 2016 from
17
http://www.entrepreneur.com.ph/franchising/bibingkinitan-bibingka-in-a-bite
29
G.2DOLORS KAKANIN18
A bilao of DOLOR'S KAKANIN

typically has sapin-sapin, kamoteng
kahoy, ube, kutsinta, mais and biko -
making an attractive and tasty dessert
that's perfect for rounding off any
celebration.
It all began at Escanilla

Street. Escanilla is the street beside the
Immaculate Conception Parish Church.
It’s the original location of Dolor’s
kakanin. Back then, there were big
wooden shelves on the right side along
the wall where they used to put the huge
bilaos of kakanin. Every time you order a
bilao of kakanin, the store staff would get the different kakanin from those huge bilaos. People
would watch fascinated, at how the staff would expertly get each strip of colorful kakanin and
round them in the bilao size that you ordered. Every family gathering or special occasion always
had to have DOLOR'S KAKANIN as one of the desserts.
According to the write-ups, Aling Dolor (Dolores Santos) started selling her kakanin to
neighbors and in the market in the late 1930s. Her kakanin sold very well that she soon opened a
store in her house where she personally supervised
and mixed in the flavorings for the kakanin in the
wee hours of the morning. She worked with a passion
for her delicious native delicacies and its popularity
spread even abroad. Aling Dolor passed away in
1997, and the business is now being run by family
members.
18
Mymalabon blogspot (2010) “Dolor’s kakanin” retrieved on September 24, 2016 from
http://mymalabon.blogspot.com/2010/08/another-food-treasure-of-malabon-dolors.html
30
Today, Dolor's kakanin produces

six kinds of native kakanin, these flavors
include the best-selling Sapin-Sapin,
Kalamay, Ube, Mais, Kutsinta, Kamoteng
kahoy, and Biko. Other products include
Pitsi-pitsi with Cheese, Ube halaya, Pansit
Malabon, Relenong Bangus, breads and
other native delicacies. Dolor's kakanin is
not only available in Malabon, but also
exclusively distributed by its sister
company "Mommy'?s Malabon Pride" with
branches located at Congressional Ave. QC,
West Service Road, Sucat, Landmark Food
Center Trinoma and Makati, Landmark
Market place Trinoma, SM Supermarket
weekend Bazaar, SM Makati, SM Megamall, SM Fairview, SM Southmall, SM Manila, SM
North Edsa, SM Savemore Market Festival Mall and SM Savemore Market Nagtahan.
The main store located at 19 Governor Pascual Avenue Concepcion, Malabon opened at
6am to 8pm
31
CHAPTER III
METHOD OF RESEARCH AND PROCEDURE
A. METHOD OF RESEARCH USED
The researcher used the Descriptive Method of Research because it involves an

extensive and systematically analysis off all factors affecting the possibility of success of
the kakanin production business and by this method the researcher also wants to validate
the facts, current condition and prevailing perception of the market in the relation to the
Kakanin production business within three (3) years financial projection.
By using the descriptive method of research the researcher gathered data on

Kakanin production business covering the following aspects of the feasibility study:
Market feasibility, Technical and Operation Feasibility, Manpower and Organizational
feasibility and Financial Feasibility. The researcher will also determine the contribution
to the community of the proposed business.
B. THE DEVELOPMENT OF RESEARCH INSTRUMENT
B.1 METHOD OF COLLECTING SECONDARY DATA
B.1.1 LIBRARY RESEARCH
The researcher gets necessary information, details and ideas from the library
which one can find out from the unpublished thesis and journals. These materials served
as a guideline and pattern for a correct format and structure which can apply to the
proposed business.
B.1.2 e-LIBRARY RESEARCH
This research program is a result of the advance technology. The technology that
brought us the internet which the researcher used to complete the information needed for
this study. Through the help of internet the researcher get the content of the Review of
Related Literature and Studies.
32
B.2 METHOD OF COLLECTING PRIMARY DATA
The researcher also makes use of the primary data through the
questionnaire, interview, observation, customers behavior and foot traffic from
identified respondents.
B.2.1 SAMPLING DESIGN AND CONDUCT OF SURVEY
The researcher used Stratified Random Sampling method and randomly selected
100 people that can be prospective customers from Zone I, Zone II, Zone III, and Zone
IV Poblacion, Barangay Angeles Barangay Caridad Ibaba and Barangay Tagbakin. The
researcher gave those copies of designed questionnaire and instructed to evaluate and
answer the questions to determine the market preferences.
The formula for sample size is: n= N/ 1 + Ne2
Whereas:
n= sample size
N= the size of the population N= 29291
E= margin of error (5%) e= 0.05
Computation:
n= N/1+Ne2
n= (29291)/ (1+29291) (.05)2
n= (29291)/ (29292) (.05)2
n= (29291)/ (74.23)
n= 395
The total number sample size is 395 respondents but the researcher collect 100 out of 395
respondent, for academic purposes.
33
Table 1. Percentage Distribution and Sample Size

Target Market Number of Percentage Total No. of
Households Distribution respondents
(N)
Zone I 4644 16% 16
Zone II 3775 13% 13

Zone III 1943 7% 7
Zone IV 3679 12% 12
Barangay Angeles 2496 9% 9
Barangay Caridad 6456 22% 22

Ibaba
Barangay Tagbakin 6298 21% 21
TOTALS 29291 100% 100
Please refer to Appendix A for the Survey Questionnaire
B.2.2 INTERVIEW
Last October 3, 2016, the researcher decided to conduct an interview with Mrs.
Ma. Elena V. Brondo an owner of home-made special tikoy at Barangay Ponon. The
researcher aims to gather the necessary information that complies to the five pillars which
are the Market Aspects, Operational and Technical Aspects, Manpower and Organization
Aspects, Financial Aspects and Contribution to Community of the business. The
information gathered by the researcher can help to determine the future direction of this
kind of business and can give ideas to the entrepreneurs regarding in Kakanin production
business.
Please refer to Appendix B for the Interview Guide
B.2.3 PROCESS OBSERVATION
The researcher conducted direct observation last October 4, 2016. Where she
directly observe and physically present while the producer doing the process in the
production. The researcher monitors how the products makes and take place after. The
researcher gain knowledge and information through the observation she gathered.
Please refer to Appendix C for the Process Observation

34
B.2.4 CUSTOMER BEHAVIOR OBSERVATION
Last October 13, 2016 the researcher conducted a customers’ behavior

observation to determine the customers behavior regarding in purchasing the products.
The researcher observed their attitudes, to know how and where to adjust in selling the
products in a proper way which the customers can feel comfortable with.
Please refer to Appendix C for Customer Behavior Observation Guide
B.2.5 FOOT TRAFFIC
The researcher conduct foot traffic to ensure proper design and placement of
building which the products can be placed. The higher the foot traffic the more chance for
the business to become successful. The researcher conducted one (1) week foot traffic,
started October 3, 2016 until she finished the time required for the foot traffic and the
data she gathered can help to determine if the placed is right for the kakanin production
business.
Please refer to Appendix D for the Foot Traffic Guide
C. STATISTICAL TREATMENT OF DATA
The data collected were categorized and tallied. The result of the survey was
tabulated to analyze and interpret easily.
C.1 PERCENTAGE
Formula: P= (n/N) x 100%
Where:
P= Percentage
n= number of the responses
N= Number of Respondents
 This is used in determining the demographic profile of the respondents.

 This also used in assessing competition, the reporting days and time.
 The researcher also used the pie chart to present the percentage
35
C.2 FREQUENCY DISTRIBUTION
The researcher used frequency distribution to determine the products that

the respondents look in the Kakanin production business. The researcher used the
bar graph to present data clearly.
C.3 MEAN/ WEIGHTED MEAN
∑ 𝐅𝐰 𝟓𝒇 𝟒𝒇 𝟑𝒇 𝟐𝒇 𝟏𝒇
Formula: WM= or WM=
𝐍 𝑻𝑭
Where: WM = is the weighted mean

TF = Total Frequency
f = Frequency
The weighted mean is used in determining the respondent’s attitude toward the proposed
business.
To give the descriptive analysis of data, the researcher used the following likert scale.
Table A: Likert Scale to interpret weighted mean
Weighted Mean Descriptive Analysis
4.20 - 5.00 STRONGLY AGREE MOST PREFERRED
3.40 - 4.19 AGREE PREFERRED
2.60 - 3.39 UNDECIDED SOMEWHAT PREFERRED
1.80 - 2.59 DISAGREE LEAST PREFERRED
1.00 - 1.79 STRONGLY DISAGREE NOT PREFERRED

36
CHAPTER IV
ANALYSIS, PRESENTATION AND
INTERPRETATION OF DATA
This chapter presents the analysis, presentation of all data and information gathered by
the researcher for the Feasibility Study of Setting up a Filipinos Native Delicacies (Kakanin)
Production Business in Zone I Poblacion Atimonan, Quezon.
A.SUMMARY OF RESPONSES FROM THE MARKET SURVEY

A.1 DEMOGRAPHIC PROFILE OF THE RESPONDENTS
A.1.1 Age of the respondents
Table A.1.1 Age Distribution of the Respondents

Age of Respondents No. Of Respondents Percentage Distribution
Below 16 years old 10 10%
16-20 years old 9 9%
21-25 years old 11 11%
26-30 years old 8 8%
31-35 years old 15 15%
36-40 years old 10 10%
41- 45 years old 5 5%
46- 50 years old 17 17%
More than 50 years old 15 15%
TOTAL 100 100%
AGE DISTRIBUTION OF THE RESPONDENTS

Below 16 years old
15% 10% 16-20 years old
9% 21-25 years old
26-30 years old
17% 11% 31-35 years old
36-40 years old
15%
41- 45 years old
5% 8% 46- 50 years old
10% More than 50 years old
Figure A.1.1 Age Distribution of the Respondents
The table A.1.1 and Figure A.11 show the distribution age of the respondents. The 17%
of them are from the age group of 46-50 years old, while 15% are from the age groups of 31-35
and more than 50 years old. 11% of the respondents are from the group of 21-25 years old. 10%
are from the age groups of below 16 and 36-40 years old, while 9% are from the group of 16-20
years old. 26-30 years old have the percentage of 8% next to that got the 5% no other than the
group from the age of 41-45 years old.
37
A.1.2 Sex of the Respondents
Table A.1.2 Percentage Distribution of the Respondents by Sex
Civil Status No. Of Respondents Percentage Distribution
Male 32 32%
Female 68 68%
TOTAL 100 100%
SEX DISTRIBUTION OF THE RESPONDENTS
32%
Male
68% Female
Figure A.1.2 Percentage Distribution of the Respondents by Sex
Based on table A.1.2 and Figure A.1.2 68% of the respondents are female and the
remaining 32% are from the male group of respondents. It also represent that the majority of the
residents of Atimonan are female .We can confirm it from the latest National Statistics Office
(NSO) survey.
38
A.1.3 Civil Status of the Respondents
Table A.1.3 Percentage Distribution of the Respondents by Civil Status
Civil Status No. Of Respondents Percentage Distribution
Single 41 41%
Married 54 54%
Widow 5 5%
TOTAL 100 100%
CIVIL STATUS OF RESPONDENTS
5%
41% Single
Married
54%
Widow
Figure A.1.3 Percentage Distribution of the Respondents by Civil Status
The table A.1.3 and Figure A.1.3 show that married respondents are 54% which are the
highest civil status among the others. The next one is the single Status which got 41% of the
respondents and lastly is the widows who got 5%.
39
A.1.4 Monthly Income of the Respondents
Table A.1.4 Percentage Distribution of the Monthly Income of the Respondents
Average Family Income No. Of Respondents Percentage Distribution
Less than 3,000Php per month 13 13%
3,001 Php - 6,000 Php per month 6 6%
6,001 Php - 9,000 Php per month 33 33%
9,001 Php - 12,000 Php per month 20 20%
12,001 Php – 15,000 Php per month 19 19%
More than 15,000Php per month 9 9%

TOTAL 100 100%
Less than 3,000Php per month

INCOME DISTRIBUTION OF THE RESPONDENTS
3,001 Php - 6,000 Php per
month
9% 13% 6%
6,001 Php - 9,000 Php per
19% month
9,001 Php - 12,000 Php per
20% 33% month
12,001 Php – 15,000 Php per
month
More than 15,000Php per
month
Figure A.1.4 Percentage Distribution of the Monthly Income of the Respondents
Base on table A.1.4 and Figure A.1.4 the 33% of the total respondents have monthly
income of Php 6,001- Php 9,000 per month while the 20% of them have monthly income of Php9,
001- php12, 000 per month. 19% of the respondents have the monthly income of Php12, 001-
php15, 000 per month. 13% of the respondents have monthly income of less than 3,000 per
month, 9% of the respondents have more than Php15, 000 per month. The remaining 6% of the
respondents have Php 3,001 – Php6,000 per hour.
40
A.1.5 Occupation of the Respondents
Table A.1.5 Percentage Distribution of the Respondents by Occupation

Occupation No. Of Respondents Percentage Distribution
Laborer 18 18%
Farmer 9 9%
Fishermen 2 2%
Teacher 11 11%
Government Employee 11 11%
Office Worker 9 9%
Vendor 11 11%
House keeper 6 6%
Driver 5 5%
Unemployed 11 11%
Other 7 7%
TOTAL 100 100%
OCCUPATION OF THE RESPONDENTS

Laborer
7% 18% Farmer
11%
5%
Fishermen
9%
6% Teacher
Government Employee
11% 11%
2%
Office Worker
9% 11%
Vendor
House keeper
Driver
Figure A.1.5 Percentage Distribution of the Respondents by Occupation
Based on table A.1.5 and Figure A.1.5, most of the respondents are laborers with the
percentage of 18%, while teacher, Government employee, vendor and unemployed got the same
percentage of 11%. The farmer and Office worker got the 9%. There are respondents who got
other occupation with the percentage of 7%. Housekeepers got 6%. Driver at 5% and 2% of the
respondents are fishermen.
41
A.2 MARKET PREFERENCE TO THE “KAKANIN” BUSINESS
A.2.1Respondents Response to their Preferred Product Classification and

Amount to spend
Table A.2.1Respondents Response to their Preferred Product that they look for Kakanin
Business and how much they going to pay
Percentage Price willing to pay
Products Frequency Rank
Distribution Php
Cassava cake/ budin 42 8% 3 9

Pichi- pichi 26 5% 11 4
Sapin- Sapin 16 3% 16 10
Palitaw 32 6% 7 3
Biko/Sinukmani 35 7% 5 7
Suman 48 9% 2 10
Puto 33 6% 6 7
Buchi 20 4% 15 6
Kutsinta 59 12% 1 4
Espasol 39 8% 4 10
Tikoy 23 4% 12 45
Bibingka 27 5% 10 12
Karoka 15 3% 17 6
Maruya 21 4% 13.5 6
Niyubak/ nilupak 29 7% 8 7
Maja 28 5% 9 9
Pilipit 21 4% 13.5 6
Others 0 0 0 0
Total 514 100% 0 0
42
Figure A.2.1Respondents Response to their Preferred Product that they look for Kakanin Business
and how much they going to pay
RESPONDENTS RESPONSE TO THE PRODUCT THAT THEY LOOK

FOR A KAKANIN
60
50
40
30
20
10
Based on the Table and Figure A.2.1, 59 of the respondents look for kutsinta and willing
to pay Php4 next by 48 respondents who looks for suman and are willing to pay Php10. 42
respondents look for budin and are willing to pay Php9; 39 for espasol and willing to pay Php10,
35 for Biko and willing to pay Php7; 33 for puto and willing to pay Php7; 32 for palitaw and
willing to pay Php3. There are 29 respondents who look for niyubak and willing to pay Php7, 28
respondents looks for maja and willing to pay Php9, followed by 27 for bibingka and willing to
pay Php12, 26 for pichi-pichi and willing to pay Php4; 23 for tikoy and willing to pay Php45; 21
of the respondents looks for maruya and pilipit and they are willing to pay both products for
Php6; 20 for buchi and willing to pay Php6 and 16 respondents who want sapin-sapin and willing
to pay Php10.
43
A.3 MARKET ATTITUDE AND PERCEPTION TOWARD BUYINGTHE KAKANIN

BUSINESS
Table A.3.1 Responses pertaining to the willingness of the respondents on buying the
Descriptive Analysis
Strongly Disagree
Weighted Mean
Strongly Agree
Undecided
TOTALS
Disagree
Agree
Rank
Market Attitude
I buy kakanin because it reminds me my
chilhood snacks. 15 58 4 23 0 100 3.65 Agree 9
I buy kakanin because I'm craving for
filipinos snacks. 25 44 19 12 0 100 3.82 Agree 7
I buy kakanin because it makes me
become full easier. 29 46 25 0 0 100 4.04 Agree 3
I buy kakanin because it boosts my
appetite. 19 55 16 10 0 100 3.83 Agree 6
I buy kakanin because it suits my
budget. 44 52 4 0 0 100 4.4 Agree 1
I buy kakanin because it is my all-time
favorite snacks. 24 53 15 8 0 100 3.93 Agree 5
I buy kakanin because It is one of the
request of my OFW friends 25 40 22 9 4 100 3.73 Agree 8
I buy kakanin because it serves as my
pasalubong to my relatives. 25 57 14 4 0 100 4.03 Agree 4
I buy kakanin because I serve it as a Strongly
dessert on any occasion 39 49 12 0 0 100 4.27 Agree 2
I buy kakanin to sell these to others and
make some profit 20 25 33 16 6 100 3.37 Undecided 10
The respondents look for the following attributes of kakanin products:

Strongly Agree:
 I buy kakanin because it reminds me my childhood snacks. The weighted mean is 3.65, rank
10
Agree:
 I buy kakanin because I'm craving for Filipinos snacks. The weighted mean is 3.82, rank 7
 I buy kakanin because it makes me become full easier. The weighted mean is 4.04, rank 3
 I buy kakanin because it boosts my appetite. The weighted mean is 3.83, rank 6
 I buy kakanin because it suits my budget. The weighted mean is 4.40, rank 1
 I buy kakanin because it is my all-time favorite snacks. The weighted mean is 3.93, rank 5
 I buy kakanin because it is one of the requests of my OFW friends. The weighted mean is
3.73, rank 8
44
 I buy kakanin because it serves as my pasalubong to my relatives. The weighted mean is

4.03, rank 4
 I buy kakanin because I serve it as a dessert on any occasion. The weighted mean is 4.27,
rank 2
Undecided
 I buy kakanin to sell these to others and make some profit. The weighted mean is 3.37, rank 9
A.4 MARKET PREFERENCES

A.4.1 Market Preference about the Kakanin Store
Table A.4.1 Characteristics that the market looks for a Kakanin Store
Most Preferred
Not Preferred
Descriptive
Undecided
Preferred
Preferred
Weighted
Analysis
TOTAL
Mean
Rank
Least
at all
Characteristics of Kakanin Store
Most
65 35 0 0 0 100 4.65 1
Neat and clean Preferred
Most
41 54 5 0 0 100 4.36 5
All things are organize Preferred
Most
42 48 10 0 0 100 4.32 7.5
The place is well ventilated Preferred
Most
35 40 11 10 4 100 3.92 10
The interior design are creative and attractive Preferred
Most
40 50 9 1 0 100 4.29 9
It have a pleasant ambience Preferred
It have a space where customers can eat their Most
43 50 4 3 0 100 4.33 6
kakanins Preferred
Most
48 41 6 5 0 100 4.32 7.5
It have comfortable chairs for the customers Preferred
Most
53 42 4 1 0 100 4.47 3
The store is accessible and easy to find Preferred
Most
55 43 0 2 0 100 4.51 2
Have a friendly and approachable staff Preferred
Most
47 51 1 1 0 100 4.44 4
The Place is safe and secured Preferred
Based on the table A.4.1 The market most preferred the neat and clean store with a
weighted mean of 4.65; Followed by those stores which have friendly and approachable staff with
a weighted mean of 4.51. The store that is accessible and easy to find got the weighted mean of
4.47; the place that is safe and secured with the weighted mean of 4.44; all things are organized
with the weighted mean of 4.36. The store with a space where customers can eat their kakanins
got a weighted mean of 4.33; the store that is well ventilated and have comfortable chairs for the
customers with weighted means of 4.32.The store that have a pleasant ambience with have a
weighted mean of 4.29.Lastly the store with creative and attractive interior design got a weighted
mean of 3.92.
45
A.4.2 Market Preference about the Kakanin Product
Table A.4.1 Characteristics that the market looks for a Kakanin Product
Not Preferred at
Weighted Mean
Least Preferred
Most Preferred
Descriptive
Undecided
Preferred
Analysis
TOTAL
Rank
all
Characteristics of the Kakanin Products
Most
Attractive packaging design. 47 44 3 4 2 100 4.3
Preferred
8
Most
Have a proper package for each kakanins 63 33 3 1 0 100 4.58
Preferred
2
Most
Offer an affordable price. 59 40 0 1 0 100 4.57
Preferred
3
Most
Delicious 66 34 0 0 0 100 4.66
Preferred
1
Most
All the size of the product are equal 49 46 5 0 0 100 4.44
Preferred
5
Most
Offer variety of choices. 55 38 7 0 0 100 4.48
Preferred
4
Most
Indicate its date made and expiration date. 54 37 5 3 1 100 4.4
Preferred
6
The product label must add its contact details,
Most
for more inquiries and suggestions of the 48 40 9 3 0 100 4.33
Preferred
7
customers.
Based on the table A.4.1 the market most preferred the following attributes of kakanin
products: with delicious taste with the weighted mean of 4.66, followed by products with a proper
packaging with weighted mean of 4.58, Offer an affordable price with the weighted mean of 4.57,
offer variety of choices with the weighted mean of 4.48. All the size of the product are equal got a
the weighted mean of 4.44; indicate its date made and expiration date with the weighted mean of
4.40. The product label must add its contact details, for inquiries and suggestions of the customers
got a weighted mean of 4.33. Lastly the respondents most preferred the products that have
attractive design, with the weighted mean of 4.30.
46
A.5 ASSESSMENT OF COMPETITION

A.5.1 Places the markets usually go to buy Kakanin Products
Table A.5.1 Places the respondents usually go to buy Kakanin Product
Stores No. Of Respondents Percentage Distribution
Atimonan Public Market 32 32%

Tiyange 14 14%
School Canteen 3 3%
Local Producers of kakanins 14 14%
Pasalubong Store 22 22%
We make our own kakanin 11 11%
Others 4 4%
TOTAL 100 100%
PLACES THAT THE RESPONDENT USUALLY GO TO BUY

KAKANIN PRODUCTS
4% Atimonan Public Market
11%
32% Tiyange
22% School Canteen

Local Producers of kakanins
14%
14% Pasalubong Store
We make our own kakanin
3% Others
Figure A.5.1 Places the respondents usually go to buy Kakanin Product
Based on the table and figure A.5.1 32% of the respondent usually go to Atimonan Public
Market to buy kakanin product; followed by pasalubong store with 22%, tiyangge and local
producers of kakanins with the same percentage 14%. Some respondents make their own kakanin
with 11%. The respondents who answered others got 4%; while 2% of the respondents usually go
to school canteen to buy kakanin products.
47
A.6 MARKET’S WILLINGNESS TO GO THE KAKANIN STORE

A.6.1 Willingness of the respondents to go to the Kakanin Store
Table A.6.1 Willingness of the respondents to go to the Kakanin Store
Willingness to go No. Of Respondents Percentage Distribution
Yes 68 68%
No 6 6%
Maybe 26 26%
TOTAL 100 100%
RESPONDENT'S WILLINGNESS TO GO TO THE KAKANIN

STORE
26%
Yes
No
6% 68%
Maybe
Figure A.6.1 Willingness of the respondents to go to the Kakanin Store
Based on the table and Figure A.6.1, 68% of the respondents are willing to go to the new
kakanin store while 26% of them are having second thought and 6% of the respondents lack the
willingness to go to the new kakanin store.
48
A.6.2 Respondents Preferred Store Days
Table A.6.2 Respondents Preferred Store Days
Store Days No. Of Respondents Percentage Distribution
Monday- Friday 20 20%
Monday- Saturday 27 27%
Monday- Sunday 38 38%
Saturday and Sunday only 15 15%

TOTAL 100 100%
RESPONDENTS PREFERRED STORE DAYS
15% 20%
Monday- Friday
Monday- Saturday
38% 27%
Monday- Sunday
Saturday and Sunday only
Figure A.6.2 Respondents Preferred Store Days
Based on Table and Figure A.6.2 most of the respondents preferred the store days of
Monday- Sunday with the percentage of 38%; followed by Monday- Saturday with 27%. Monday
– Friday got 20% and 15% of the respondents preferred the store days of Saturday and Sunday
only.
49
A.6.3 Respondents Preferred Store Hours
Table A.6.3 Respondents Preferred Store Hours
Store Hours No. Of Respondents Percentage Distribution
7:00am – 4:00pm 13 13%

7:00am – 5:00pm 18 18%
7:00am – 6:00pm 18 18%
8:00am – 4:00pm 12 12%
8:00am – 5:00pm 25 25%
8:00am – 6:00pm 13 13%
TOTAL 100 100%
PREFERRED STORE HOURS OF THE

RESPONDENTS
13% 13%
7:00am – 4:00pm
18%
7:00am – 5:00pm
26%
7:00am – 6:00pm
8:00am – 4:00pm
18% 8:00am – 5:00pm
12%
8:00am – 6:00pm
Figure A.6.3 Respondents Preferred Store Hours
Based on Table and Figure A.6.3 most of the respondents preferred the store hours of
8:00am- 5:00 pm with the percentage of 25%; while 7:00am-5:00pm and 7:00am-6:00 pm got
18%; followed by7:00am - 4:00 pm and 8:00am -6:00pm that got 13%. 12% of the respondents
preferred the store hours of 8:00am- 4:00pm.
50
B. RESULTS OF THE INTERVIEW
The researcher conducted an interview with Mrs. Elena Brondo who’s an owner of home-
made special tikoy. Last October 3, 2016, the researcher decided to conduct an interview to
gather the necessary information.
B.1 INTERVIEW WITH THE PRODUCER OF A TIKOY ONE OF THE

KAKANINS
A. Rapport Building Questions
1. Where did you get the idea to start this type of business?
Way back 2006, when my husband left us. To support my family, I decided to
start this business. Tikoy is one of my specialties that’s why I gave it a try until I
gained many customers.
2. When did you set up this Business?

2006
3. What were the challenges that you encounter when you started your business?
Lack of Capital in buying materials like Steamer and Llaneras.
B. Marketing and Sale aspects of the Business
1. Who are your existing customers?

Kakanin Vendors in Atimonan Public Market, the fruits and pasalubong vendor
in Summit Jeepney Terminal, some friends.
2. What kind of products do they usually buy?

Big and small size of tikoy
3. What products sell the most? The Least?

The small size sells the most because of its cheap price while the big size sells the
least. But on holidays like Christmas and New Year the big size sells the most.
4. What do you do to attract customers to your business?

I offer free taste to attract customers. I also give discounts depending on how
many pieces my customers order.
5. What is so unique about your product versus your competitors?

The unique thing about my product is the taste. The customers love it that’s why I
gained loyal customers.
51
6. Do you give discounts to your customers? What is the level of discount do you give
to your customers?
Yes, depending on how many pieces of tikoy they order.
7. How much is your average sales per month?

P8000.00
8. In what particular months do you encounter the highest sales? The lowest sales?
December and January have the highest sales while September and October have
the lowest sales. May and November have average sales.
C. Technical and Operational aspects of the Business
1. Why did you choose this location for your business? Do you rent the space for your
business if so, how much is your monthly rental?
It’s a home based business that’s why there’s no monthly rental.
2. What are the operating days and time of your business?

NA
3. What are the government requirements needed for this type of business?
None
4. Where do you source your supply?

I source my needed ingredients in PAG-ASA Mart or Capparros Mart.
5. What are the challenges, risk and problems do you encounter in operating this type of
business?
There are times when my tikoy didn’t cooked properly because the type of
glutinous rice (malagkit) I used is not good.
D. Organizational and Manpower aspects of the Business
1. What is the legal structure of your business?

Sole Proprietorship
2. Who manage your business?

I’m the one who managed my business.
3. How many personnel do you have? What are their job roles and responsibilities?
I don’t have but I have my children who help me.
4. What do you look for in an employee?

NA
5. How much are their month salaries and benefits?

NA
52
6. What are the common problems that you encounter in relation to your personnel?
NA
E. Financial aspects of the Business
1. How much was your capitalization when you set up this business?
The initial capital when I started my buisness is P1000.00
2. What was the source of your capital?

From my savings
3. What are the common expenses in running this type of business?

None
4. How much is your monthly or yearly income?

Confidential
F. Future direction of the Business and Advice to entrepreneurs.
1. What are your future plans for your business? Do you have plans for expanding your
business?
I want my business to expand in the future and have my own stores in different
locations.
2. What advice can you give to the entrepreneurs who would like set up this type of
business?
Every entrepreneur should always aim for success they must love their business
though it maybe tiring sometimes, you should not give up.
3. How do you want your business to help in the community?

When my business became successful someday, I want to teach them how to do it.
53
C. RESULT OF PROCESS OBSERVATION

The researcher conducted a process observation with Mrs. Elena Brondo who’s an owner of
home- made special tikoy. Last October 3, 2016, the researcher decided to conduct a process
observation too directly see the actual process which can gave important information.
C.1 PROCESS IN MAKING THE KAKANIN PRODUCTS.
Soak the Glutinous

rice overnight or at
least 5 hours
Wash the Glutinous rice and

Mix all the ingredients
including Condensed Milk,
Cheese, Sugar, Margarine and
Once cook, let it cool then

remove the plastic and
replace it with transparent
After mixing it, put it
slowly in a rice grinder
twice or more to
achieve the soft texture.
Prepare the Llanera. Pour

the grind ingredients in the
Llanera then cook in a
Figure C.1 Process in making the products
The Process observation starts in preparing the rice, then adding the ingredients, following
the procedures until it form into a finished product. It simply shows how “Galapong” or what we
called glutinous rice turns into a finished product “tikoy.
54
C.2 PROCESS FROM PRODUCTION TO MARKET
Buying raw materials

needed to make
products
Having raw materials

we can proceed in
making the products
The finished products are

ready for distribution and
delivery for the existing
customers and stores.
The products displayed

at the stores will be
served to the market.
Figure C.2 Process from production to market.
The process shows that the kakanin production starts in buying raw materials
needed for the production. If the materials are all available then we can start making our
product, after we finished our products. The kakanins will be delivered to the customers
or stores.
55
D. RESULTS OF CUSTOMERS BEHAVIOR OBSERVATION

The researcher conducted a customer’s behavior observation in Aling Eday’s Store last
October 13.2016 in fronts of Our Lady of Angels Academy 9 o’ clock in the morning. To
observed the different behaviors of the customers regarding on buying kakanin products. The
results of the process observation are follows.
Table D. Customers Behaviour Observation

Number of
Behavior Occurrence Rank
1
People stop to look the product. 65
6
Asking the price of each product. 43
4
Asking if the products are new. 50
5
Smell the product. 45
7
Choosing the products that have a good appearance. 39
3
Weighing each product. 57
2
Getting the products that seem bigger than others. 62
Choosing the products that are behind from the front displayed
products 30 9
8
Asking for a good cover for the products specially if they buy more. 37
The table shows the different behaviors of customers in purchasing the product. Most of the
customers stop to look the product. It is the rank 1. Next are they getting the products that seem
bigger than others, rank 2. Weighing each product is rank 3. Asking if the products are new is
rank 4.The customer smell the product rank 5. Asking the price of each product is rank 6.
Choosing the products that have a good appearance is rank 7. Asking for a good cover for the
products specially if they buy more is rank 8. Lastly the customers choosing the products that are
behind from the front displayed products.
The customer’s behavior observation that the researcher conducted can help to enhance the
awareness of entrepreneurs and help them on how they can improve and adjust their way of
selling for the sake of the customers.
56
E. RESULT OF FOOT TRAFFIC

The researcher conducted foot traffic on Zone 1 Dona Aurora St. Last October 3, 2016. The
researcher gathered information in foot traffic to know if the place is suitable in kakanin business
Start time End time Monday Tuesday Wednesday Thursday Friday Saturday Sunday
6:30 7:30 1226 989 883 953 791 562 669
7:30 8:30 562 506 496 503 439 427 590
8:30 9:30 438 412 406 394 384 375 467
9:30 10:30 417 396 378 393 409 419 711
10:30 11:30 689 452 420 511 415 514 586
11:30 12:30 823 843 695 429 673 620 495
12:30 1:30 978 701 549 531 928 681 424
1:30 2:30 517 603 538 542 592 454 407
2:30 3:30 539 615 633 607 481 539 649
3:30 4:30 1102 995 835 1119 678 601 792
4:30 5:30 952 1028 1317 642 794 673 626
FOOT TRAFFIC
Monday Tuesday Wednesday Thursday Friday Saturday Sunday
1400
1200
1000
800
600
400
200
0
7:30 8:30 9:30 10:30 11:30 12:30 1:30 2:30 3:30 4:30 5:30
6:30 7:30 8:30 9:30 10:30 11:30 12:30 1:30 2:30 3:30 4:30
Figure E. Foot Traffic
The figure shows the foot traffic of the proposed business which gathered at the chosen
place of the researcher. For seven days of gathering data from time to time we can determine
which time have the lesser and greater count of people passing by. The researcher find out that
starting at 8:30 to 10:30 am there are less chances of sales because of lower foot traffic or lower
count of people passing by during those hours. The peak hours are 6:30-7:30 am, 11:30-1:30 pm
and 3:30-5:30pm. The researcher also found out the days which are peak and low. The peak days
are week days and Sunday while low is Saturday because of less people passing by.
57
CHAPTER V
MARKET FEASIBILITY
A. INDUSTRY DESCRIPTION AND COMPETITIVENES
Filipino Native Delicacies (kakanin) is the type of industry that can be easily manufactured
at home. It is traced way back pre- colonial were our ancestor used it as offer to visitors but then
it became a source of income when they learn that it can be profitable by selling it to others.
The researcher decides to study this kind of business because she wants to enlighten people
that it is a good source of income. It is easy to start because it has low startup cost and most of
them can afford it. The researcher also wants to encourage future investors to venture in the
similar business. This study considered the size and scope of the market, where the researcher
used 100 respondents which randomly selected from the number of the population in Barangay
Zone I, Zone II, Zone III, Zone IV, Barangay Angeles, Barangay Caridad Ibaba, and Barangay
Tagbakin.
The major competitors of the proposed business are those people whose selling kakanin
products. Based on the survey most of the total respondents go to Atimonan Public Market which
we can find kakanin vendors it has 32%. 22% of them go to Pasalubong Store while Tiangge and
Local producers of kakanin got 14%, 11% make their own kakanin while 3% of them go to
school canteen and others got 4% of the respondents. But the researcher believes that the
proposed kakanin business will be known by the market and will be patronized. It can be on the
track of the rest of its competitors.
B. ACCESS TO MARKET OUTLETS/CHANNELS OF

DISTRIBUTION
The potential customers of kakanin business are the residents of Atimonan, the tourist and
travellers that passing by in Atimonan Quezon. Based on the data that the researcher gathered
from the market survey, 17% of them are from the age group of 46-50 years old, while 15% are
from the age groups of 31-35 and more than 50 years old. 11% of the respondents are from the
group of 21-25 years old. 10% are from the age groups of below 16 and 36-40 years old, while
9% are from the group of 16-20 years old. 26-30 years old have the percentage of 8% next to that
got the 5% no other than the group from the age of 41-45 years old. Majority are female with
68%, most of them are married with percentage of 54% and most of them are laborer with
percentage 18% and has an average family income of Php6001- 9000 per month.
58
The proposed kakanin business will be using flyers, tarpaulin, radio advertisement
through “Radyo Natin”, T,v advertisement through CatV and social media advertisement
through Facebook and instagram through advertisements it can help to promote and attract
customers.
The kakanin business will take place at Zone I Poblacion Atimonan Quezon. The
researcher also consider Atimonan Zigzag Park and Atimonan Grand terminal as her place
for the branch of her store. Those chosen location is very accessible because the main store
is near from the schools, bank, and church where most people are passing. The researcher
thinks that it is the best place because there are more people passing by at the location which
means more opportunity of sales increase. The other branches are very accessible from the
tourist travellers.
C. ACCESS TO SUPPLY
The proposed Kakanin store will source its supply from these local suppliers:
 Electricity - QUEZELCO Atimonan, Quezon

 Water - Water District and Water Station Atimonan, Quezon
 Telephone - GTSI Atimonan, Quezon
 Equipment - Atimonan Quezon, Gumaca or Lucena City
 Internet Connection – F1 Internet Atimonan, CATV
 Ingridents -Pag-asa Mart, Capparros mart, South Emerald and Public
Market
D. GOVERNMENT REGULATIONS AFFECTING THE

BUSINESS
The following are the business permits required by the government in setting up the
proposed Kakanin Business,
 Barangay Business Permit (Zone I, Atimonan, Quezon)
 Certificate of Registration (Department of Trade and Industry)
 Certificate from Bureau of Trade Regulation and Consumer

Protection(BTRCP)
 Certification from Bureau of Foods and Drugs
 Certificate of Registration (Bureau of Internal Revenue)

59
o Income Tax Return
 Mayors Permit
o Business Plate
o Fire Safety Permit
o Health and Sanitary Permit
 Local Ordinance affecting the Business:
Municipal Ordinance No. 2011-242
Author: Councilor Maria Aurora Aragon-Tamayo
A Municipal Ordinance entitles “Regulations That Prohibits the Use and Selling of
Plastic Bag, Cellophane or Styrofoam (Polyethylene) as packaging for Products Purchased”,
encourages the use of biodegradable packaging for products purchased within the town of
Atimonan, province of Quezon. Since the researcher will follow the Local ordinance she will
pack all kakanin products into a box, or into reusable wares.
E. PROFILE OF THE MARKET AND THE PROPOSED

MARKET PROGRAM
The target market total populations is 29,291 and from that population the target market
of the researcher are those people who want to make their stomach full but in the same time they
do not loss much money from their pocket.
Based on the survey, the market preferred the following products:
 Kutsinta
 Suman
 Cassava Cake/Budin
 Espasol
 Biko/ Sinukmani
 Puto
 Palitaw
 Niyubak/ Nilupak
The researcher decided to put up her business near the schools, church and banks where
many people are passing by. The proposed kakanin business location is very accessible and easy
to find. Kakanin products need to be exposed to the people as the researcher wants it to be well-
known.
60
To promote the native delicacies we need some enhancement and improvement on the
way it serve and in it packaging etc.
A variety of kakanins will be offered such as kutsintan, suman, budin, espasol, biko, puto
and other kakanins. The researcher insures that the price given for each kakanins will be right and
equal for quality of each product. All kakanin products will offer in affordable price in which the
customer can gain satisfaction.
The researcher will give promos for kakanin product. It is one of the strategies of the
researcher to promote and advertise the kakanins. It helps the researcher to get loyal customers
and even those people who want to retail this kind of product.
F. MARKETING POTENTIAL AND PROJECTED SALES
The target markets of proposed business are the residents in selected Barangays from the
town of Atimonan and the nearby Barangays namely Barangay Zone I, Zone II, Zone III, Zone
IV, Caridad Ibaba, Tagbakin Angeles and also the travellers and tourist whose passing by at
Atimonan Quezon . The Target market’s total population is 29,291 in which 31-35 years old and
more than 50 years are got 15% in age distribution and as their Average Income 31% of the
respondents earn Php 6001- Php 9000 per month while 6% of them earn Php 3,001 - Php 6,000 per
month.
The researcher assumed to increase of 18% in sales for the first year because the products
startup cost is cheaper but it’s profitable which new entrepreneurs can have a good opportunity to
have their own business.
TABLE F.1 TARGET MARKET BASE:
TARGET MARKET Number of Respondents

Barangay Zone I 4644
Barangay Zone II 3775
Barangay Zone III 1943
Barangay Zone IV 3679
Barangay Angeles 2496
Barangay Caridad Ibaba 6456
Barangay Tagbakin 6298
Total no. of Households 29291
61
TABLE F.2 MARKET WILLINGNESS

Willingness to go No. Of Respondents Percentage Distribution
Yes 68 68%
No 6 6%
Maybe 26 26%
TOTAL 100 100%
Based on the survey, 68% of the respondents are willing to go to the proposed kakanin store to
try the products. Followed by 26% which having second thoughts and going to store and 6% of
them are not interested.
TABLE F.3 COMPETITION OF THE BUSINESS
Stores No. Of Respondents Percentage Distribution
Atimonan Public Market 32 32%

Tiyange 14 14%
School Canteen 3 3%
Local Producers of kakanins 14 14%
Pasalubong Store 22 22%
We make our own kakanin 11 11%
Others 4 4%
TOTAL 100 100%
Target Market:
Total Population: 29291

Repondents willingness: 68%
Competition (top competitors Atimonan:
Public Market: 32%
Assumption to enter the market: 25%
= 29291*68%*32%*25%
= 1593 (MARKET BASE)
62
TABLE F.4 SEASONALITY OF THE BUSINESS AND ASSESSMENT
Effective Effective
Percentage Total Effective Market Market
of Market Market Market Base per Base per
Months Seasonality Assessment Base Base Base piece Pack
The Market looks for
snack that they will offer
during New Year
January Peak occasion 85% 1593 1354 948 406
The market looks for
delicious snack but
affordable since its
valentine’s day all food
house are full and
February Peak kakanin is available. 85% 1593 1354 948 406
It is end of Classes and
March Lean there's a lot of expenses 50% 1593 797 558 239
April Summer Vacation,

people wants to save
money they prepare their
May Lean own snacks 50% 1593 797 558 239
June
Classes are resumed and
students have their
July Peak budgets for snacks 85% 1593 1354 948 406
It is month of town
fiesta and more people
are strolling around the
August Peak area. 85% 1593 1354 948 406
September There are a lot of
expenses from the
previous month and it is
the month where people
are preparing for paying
October Lean tuition fees. 50% 1593 797 558 239
It is the month of All
Saints day and All Souls
day and there’s a lot of
people visiting their
loved ones .They may
want to eat kakanin
specially when they visit
November Peak the provinces 85% 1593 1354 948 406
It's holiday season and
kakanin products are
usually present on the
December Peak table of Filipino family’s 85% 1593 1354 948 406
 The distribution of Effective Market Base per Piece and per Pack is 70% by 30%
of Total Effective Market Base.
63
TABLE F.5 PROJECTED SALES
PERCENT
AGE OF
RESPOND
ENTS WHO NUMBER OF
PRICE THAT THE WILL BUY CUSTOMERS
MARKET ARE THE WHO WILL
PRODUCTS WILLING TO PAY PRODUCT BUY TOTAL SALES
JANUARY,FEBRUARY,JUNE, JULY,
AUGUST,NOVEMBER, DECEMBER (PEAK)
Those who will buy Per Pack (406)

Kutsinta/ 5 pieces Php 20.00 17% 69 Php 1,380.00
Suman/ 6 pieces Php 50.00 14% 57 Php 2,850.00
Cassava
Cake/Budin/ 1 box Php 50.00 13% 53 Php 2,650.00
Espasol/ 5 pieces Php 50.00 13% 53 Php 2,650.00
Biko/ Sinukmani /
1 box Php 70.00 11% 45 Php 3,150.00
Puto/ 5 pieces Php 20.00 10% 41 Php 820.00
Palitaw/ 6 pieces Php 15.00 10% 41 Php 615.00
Niyubak/ Nilupak/
6 pieces Php 40.00 12% 49 Php 1,960.00
Those who will buy Per Piece (948)
Kutsinta Php 4.00 17% 161 Php 644.00
Suman Php 10.00 14% 133 Php 1,330.00
Cassava
Cake/Budin Php 9.00 13% 123 Php 1,107.00
Espasol Php 10.00 13% 123 Php 1,230.00
Biko/ Sinukmani Php 7.00 11% 104 Php 728.00
Puto Php 7.00 10% 95 Php 665.00
Palitaw Php 3.00 10% 95 Php 285.00
Niyubak/ Nilupak Php 7.00 12% 114 Php 798.00
TOTAL MONTHLY SALES DURING PEAK MONTH Php 22,8622.00
TOTAL SALES PER 7 PEAK MONTHS Php 160,034.00
64
PERCENTAGE
OF
PRICE THAT THE RESPONDENTS NUMBER OF
MARKET ARE WHO WILL CUSTOMERS
WILLING TO PAY BUY THE WHO WILL
PRODUCTS PER PIECE PRODUCT BUY TOTAL SALES
MARCH, APRIL, MAY, SEPTEMBER, OCTOBER(Lean)
Those who will buy Per Pack (239)
Kutsinta/ 5
pieces Php 20.00 17% 41 Php 820.00
Suman/ 6
pieces Php 50.00 14% 33 Php 1,650.00
Cassava
Cake/Budin/
1 box Php 50.00 13% 31 Php 1,550.00
Espasol/ 5
pieces Php 50.00 13% 31 Php 1,550.00
Biko/
Sinukmani / 1
box Php 70.00 11% 26 Php 1,820.00
Puto/ 5
pieces Php 20.00 10% 24 Php 480.00
Palitaw/ 6
pieces Php 15.00 10% 24 Php 360.00
Niyubak/
Nilupak/ 6
pieces Php 40.00 12% 29 Php 1,160.00
Those who will buy Per Piece (558)
Kutsinta Php 4.00 17% 95 Php 380.00
Suman Php 10.00 14% 78 Php 780.00
Cassava
Cake/Budin Php 9.00 13% 73 Php 657.00
Espasol Php 10.00 13% 73 Php 730.00
Biko/
Sinukmani Php 7.00 11% 61 Php 427.00
Puto Php 7.00 10% 56 Php 392.00
Palitaw Php 3.00 10% 56 Php 168.00
Niyubak/
Nilupak Php 7.00 12% 67 Php 469.00
TOTAL MONTHLY SALES DURING LEAN MONTH Php 13,393.00
TOTAL SALES PER 5 LEAN MONTHS Php 66,965.00
65
YEAR 1 PROJECTED SALES Php 226,999.00
YEAR 2 PROJECTED SALES

Php 295,099.00
YEAR 3 PROJECTED SALES Php 398,384.00
ASSUMPTION:
 On the second year of operation, the researcher targets 30% increase in sales. More
people or customers will patronize because of affordable and delicious products that
kakanin produced.
 On the third year of operation targets 35% increase of sales. The researcher assumes that
business will already establish name from the customers of other barangays in Atimonan
Quezon.
66
CHAPTER VI
TECHNICAL AND OPERATIONAL FEASIBILITY
A. PRODUCTS DESCRIPTION
Based on survey, the most preferred Kakanin products are:
PRODUCTS UNIT SELLING PRICE PER UNIT SELLING PRICE PER

PIECE PACK
Kutsinta Php 4.00 Php 20.00
Suman Php 10.00 Php 50.00
Cassava Cake/Budin Php 9.00 Php 50.00
Espasol Php 10.00 Php 10.00
Biko/ Sinukmani Php 7.00 Php 70.00
Puto Php 7.00 Php 20.00
Palitaw Php 3.00 Php 15.00
Niyubak/ Nilupak Php 7.00 Php 40.00
 The proposed Filipino Native Delicacies (kakanin) production will offer delightful and
delicious snacks, which is affordable and suitable for anybody who looks for a good
snack.
 The following attributes will observed in Filipino Native Delicacies kakanin production
store:
 Neat and clean

 All things are organize
 The place is well ventilated
 The interior design are creative and attractive
 It have a pleasant ambience
 It have a space where customers can eat their kakanins
 It have comfortable chairs for the customers
 The store is accessible and easy to find
 Have a friendly and approachable staff
 The Place is safe and secured
67
B. PLANT OR STORE LOCATION
Figure B.1. The location map of the proposed Filipino Native Delicacies “kakanin”
Production Business.
Source: Google Map Retrieved on December 16, 2017

68
Figure B.2. The location map of the proposed Filipino Native Delicacies “kakanin”
Production Business.
CARD BANK
ACS
Annex PROPOSED
School KAKANIN
STORE
Doña Aurora Street
MARIVIC
Aguinaldo Street
ZZ
Manuel Quezon Street
69
 The proposed Filipino Native Delicacies “kakanin” production business is

located at Doña Aurora Street Zone I Poblacion Atimonan Quezon.
 The chosen location is very accessible where our three types of snack seekers can
find. Those three are the planner, purposeful and the spontaneous snack seeker.
The researcher also chooses this location because she can easily provide the raw
materials needed for the production of kakanin.
 There are some establishments near from the chosen location there are the PNB
bank, Our Lady of Angels Academy School, Our Lady of Angels Parish Church,
Atimonan Central School Annex, Rural Bank of Atimonan, Marivic Car wash,
Café Aguinaldo, and Card Bank. These establishments can help the proposed
business to have customers because their clients, customers and students possibly
go to the kakanin store.
 The proposed location of Kakanin business is owned by the researcher’s

grandmother Amelia Pasamba Adona who’s already passed away. The property
was supervised by researcher’s family. The researcher plans to renovate the place
and make it profitable space for her kakanin business.
 The researcher conducted a survey on what Store days and Store hours the
customers preferred the most. As per the result of the survey 38% of the total
respondents preferred Monday- Sunday Store Days while 25% of the total
respondents preferred 8:00am- 5:00pm as the Store Hour.
C. PRODUCTION PROCESS
Figure C. The Production Process of the proposed Kakanin Business
 SOURCING PROCESS
ADVERTISING ORDERING
PROCESSING PREPARING
70
 The proposed kakanin business will market their different kakanin products through
different marketing strategies such as advertisements, leaflets and through using different
social media which we can use to promote and to attract the perspective customers.
 If there are some customers who are interested to order, they can call to set what products
they want, the quantity and time of pick up. The producer will prepared the raw materials
need for the production and make it ready for the processing.
 SELLING CYCLE
CUSTOMERS SELECT THE

PRODUCT
PAYMENT ORDER/ BUY

THE PRODUCT
DINE IN/ TAKE

EXIT
OUT
 SELLING PROCESS
 The customers who are set their orders and those who are entering the store will
select the product they want. The staff of the store will assist the customers and
ready their orders.
 The customers will go to the cashier and pay the amount their purchased.
 If the customers want to take out the kakanin the staff will packed their orders
while those who are want to eat their orders there is a comfortable space for
them.
71
D. PLANT/ STORE SIZE AND LAYOUT

D.1 FLOOR PLAN OF THE PROPOSED BUSINESS
Figure D.1 Floor Plan for the Kakanin Business
Diswashing Area Kakanin Production Area FIRE EXIT

DISPOSAL
AREA
WALL
Counter/ KAKANIN DISPLAY
packaging Area
Table
KAKANIN DISPLAY
Staff room/
Rest Area
REST ROOM
Table
ENTRACE/ EXIT
Manager’s
KAKANIN DISPLAY
office
The figure shows the floor plan layout of the proposed Kakanin Production Business in
Zone I Poblacion Atimonan, Quezon. It illustrates how the store properly arranged and it is
according how the stores are going to operate. Upon Entrance there are tables and chairs
which the customers can set while choosing their orders. There’s a lot of kakanin display
which they can easily identified what product they want to order. All areas in the store are
in a reasonable position and it laid out orderly.
 The size of the store has an area of 80 square meter

 The proposed kakanin store will undergo renovation and repainting for 3 days
D.2 STORE WORK DAYS AND HOURS
Based on the survey that the researcher gathered the proposed kakanin business is
open on Monday- Sunday from 8 o’clock in the morning until 5 o’clock in the afternoon.
72
D.3 ESTIMATED COST OF REPAINTING
D.3.1 Cost of materials
The researcher asked help to her uncle who used to be a painter Mr.
Avelino P. Adona to determine the materials needed for repainting and his
estimated cost for the repainting the proposed store of the kakanin business. The
resulted are as follows:
Table1. Total cost of Labors needed for the Renovation
UNIT COST TOTAL

MATERIALS NEEDED UNIT OF QTY.
(PHP) COST (PHP)
MEASURE
Dream coat white 16 litters 1 Php 1,500.00 Php 1,500.00

Boysen paint (mint green) 4 litters 3 Php 556.00 Php 1,668.00
Paint roler 9 inch 1 Php 171.00 Php 171.00
Paint brush 80 mm 1 set Php 150.00 Php 150.00
Sand paper 120 grit size 2 Php 25.00 Php 50.00
TOTAL COST OF MATERIALS FOR RENOVATION Php3,539.00
For the raw materials needed for renovation, the cost to be incurred is Php 3,539.00
D.3.2 Cost of labor
TABLE 2. Total Cost of Labor
LABOR DAILY RATE TOTAL COST

NUMBER OF QTY.
REQUIREMENT (PHP) (PHP)
DAYS
Carpenter painter 3 1 Php 280.00 Php 840.00
TOTAL COST OF MATERIALS FOR RENOVATION Php 840.00
The proponent would hire one Carpenter Painter for the repainting of proposed
kakanin business space within three (3) days. The proposed location is already
established so that the repainting would undergo 3 days only for the repainting of the
area. The cost to be incurred by the Proposed Filipino Native Delicacies kakanin business
for labor is Php 840.00 only due to discount of 20% given to the proponent by the
painter. The minimum payment for the painter was Php 350 less the 20% discount it turn
to Php 280.00.
73
D.3.3 Cost of Renovation
Table 3. Total Cost of Renovation
DAILY RATE
COST OF RENOVATION REFERENCE
(PHP)
Cost of Materials Php 3,539.00 Chapter VI, Page 72 Table 1
Cost of Labor Php 840.00 Chapter VI, Page 72 Table 2
Total cost of Renovation Php 4,379.00
The total cost of the renovation is Php 4,379.00
Table 4. Depreciation Schedule of renovation Cost over three (3) years
Total Cost of Renovation YEAR 1 YEAR 2 YEAR 3

Php 4,379.00 Php 1,459.66 Php 1,459.00 Php 1,459.00
For three (3) years, the yearly depreciation expenses for total cost is Php 1,459.66
E. MACHINES, EQUIPMENT AND FIXTURES
Store Front Equipment and Fixtures QTY. Unit Cost (in php) Total Cost
Sweet Display
Counter 1 Php 13,000.00 Php 13,000.00
250x250
Panasonic split
Type aircon 1 Php 12,599.00 Php 12,599.00
Wooden tables
2 Php 3,000.00 Php 6,000.00
and chairs
Steamer 2 Php 500.00 Php 1,000.00
Aluminum
sweet tray 5 Php 60.00 Php 300.00
Plastic steaming
cup molder 3 Php 65.00 Php 195.00
3 Php 120.00 Php 360.00

Measuring cup
TOTAL COST STORE FRONT MACHINES EQUIPMENT AND
Php 33,454.00
MATERIALS
The total cost needed to provide the Store Equipment’s and Fixtures is Php 33,454.00
74
Table 7. Grand Total Cost of Store Front and Counter Machines, Equipment and Fixtures
Grand Total Cost of Store Front and Counter Machine, Equipment’s and
Php 33,454.00
Fixtures
The grand total of Cost of Store Front and Counter Machine, Equipment’s and Fixtures is
Php 33,454.00
E.2 DEPRECIATION SCHEDULE OF MACHINES, EQUIPMENTS, AND

FIXTURES
Table 8. The Schedule of Store Front and Counter Machines, Equipment’s and fixtures
depreciation over three (3) years
Schedule of Machines,
Equipment’s and Fixtures YEAR 1 YEAR 2 YEAR 3
Depreciation
Php 33,454.00 Php 11,151.33 Php 11,151.33 Php 11,151.33
For the three (3) years, the yearly depreciation expenses for the Store Front and Counter
Machines, Equipment and Fixtures is Php 11,151.33. The depreciation schedules are also within
three (3) to make it consistent with the financial projection.
F. COST OF GOODS
Table 9. The researcher computed the unit cost of goods as follows:
BASIC NEEDED NEEDE

KUTSINTA UNIT PER COST PER D PER COST PER
INGEDIENTS COST PRICE PIECE PIECE PACK PACK
Brown Sugar 1kl 40.00 5 ml Php 0.20 37.5 Php 1.00
Flour 1 kl. 40.00 1/4 cup Php 1.00 1.25 Php 5.00
Lye 250g 20.00 0.25ml Php 0.05 1.25ml Php 0.25
Greated fresh
coconut 1/2 kl. 5.00 1/2 tbsp Php 0.25 5 tbsp Php 1.25
TOTAL Php 1.50 Php 7.50
75
BASIC NEEDED NEEDED

SUMAN UNIT PER COST PER PER COST
INGREDIENTS COST PRICE PIECE PIECE PACK PER PACK
Glutinous rice 1kl. 40.00 4oz Php 1.60 24oz Php 9.60
Coconut milk 1 bottle 20.00 3ml Php 0.60 30ml Php 3.60
Salt 250g 12.00 1/4 tsp Php 0.30 1.5ml Php 1.50
Sugar 1kl. 40.00 7.5ml Php 0.30 37.5ml Php 1.50
CASSAVA BASIC NEEDED NEEDED

CAKE UNIT PER COST PER PER COST
Grated cassava 1kl 15.00 2g Php 0.30 1/4kl Php 3.00
Coconut milk 1bottle 20.00 2oz Php 0.40 1lb Php 3.20
Evaporated milk 370ml 23.50 5ml Php 0.11 40ml Php 0.94
Egg 3 15.00 1/4 egg Php 1.25 1 Php 5.00
Melted Butter 200g 37.00 2.5ml Php 0.09 1 tbs Php 0.74
Grated cheese 165g 49.00 0.25ml Php 0.12 2g Php 0.98
Condensed Milk 300ml 37.50 2oz Php 0.75 1lb Php 6.00
Sugar 1kl 40.00 1tbsp Php 0.40 8tbsp Php 3.20
BASIC NEEDED NEEDED

ESPASOL UNIT PER COST PER PER COST
Glutinous Rice 1kl. 40.00 2 oz Php 0.80 1 lb Php 4.00
Sweet rice flour 567g 30.00 1 tbsp Php 0.30 3.5 Php 1.50
Coconut Milk 1bottle 20.00 1 oz Php 0.20 1lb Php 1.00
Sugar 1kl. 40.00 1 tbsp Php 0.40 3.5 oz Php 2.00
Vanilla 200ml 39.00 1/4 tsp Php 0.97 1/2 tsp Php 4.87
BASIC NEEDED NEEDED

BIKO/SUMAN UNIT PER COST PER PER COST
Glutinous Rice 1kl 40.00 4oz Php 1.60 40oz Php 16.00
Coconut Milk 1bottle 20.00 2oz Php 0.04 20oz Php 0.20
Brown sugar 1kl 40.00 2.5oz Php 1.00 25oz Php 5.00
Salt 250g 12.00 0.02g Php 0.20 0.1 Php 2.00
Coconut Cream
(kakang gata) 1bottle 10.00 1/2 tbsp Php 0.05 2.5 tbsp Php 0.25
76
BASIC NEEDED NEEDED

PUTO UNIT PER COST PER PER COST
Flour 1kl 40.00 2.7oz Php 1.08 13.5oz Php 5.40
Sugar 1kl 40.00 1/2 tsp Php 0.20 2.5 tsbsp Php 1.00
Baking Powder 230g 15.00 1/4 tsp Php 0.03 1.25 tsp Php 0.18
Egg 3 15.00 0.12g Php 0.18 0.6g Php 0.90
Evaporated Milk 370ml 23.25 3.50ml Php 0.08 17.5 ml Php 0.40
Butter 200g 37.00 3.50ml Php 0.13 17.5 ml Php 0.65
Vanilla 200ml 39.00 1/4 tsp Php 0.09 1/2 tsp Php 0.48
Cheedar Cheese 226g 49.00 1/2 tbsp Php 0.24 2.5 tbsp Php 1.22
BASIC NEEDED NEEDED

PALITAW UNIT PER COST PER PER COST
Glutinous Rice 1kl 40.00 2.7oz Php 1.08 37.5 Php 6.48
Granulated Sugar 1/4kl 50.00 1/2 tbsp Php 0.25 3 cups Php 1.50
grated Coconut 1/2 kl 10.00 1/2 tsp Php 0.05 1.99 tbsp Php 0.60
NIYUBAK/NILU BASIC NEEDED NEEDED

PAK UNIT PER COST PER PER COST
Cassava 1kl 15.00 3g Php 0.45 0.013kl Php 2.70
Grated Coconut 1/2kl 10.00 1/2 tbsp Php 0.05 3 tbsp Php 0.30
Condensed Milk 300ml 37.50 2.7oz Php 1.01 0.168 lb Php 6.07
Butter 200g 37.00 0.50g Php 0.19 3g Php 1.11
Sugar 1/4kl 40.00 1 tbsp Php 0.40 6 tbsp Php 2.40
77
Table 11. Cost of Product per Serving and Inventory of Daily Assumption
PROJECTED
EQUIVALENT POTENTIAL
PRODUCTS UNIT COST COST OF
PERCENTAGE MARKET
GOODS
JANUARY,FEBRUARY,JUNE, JULY,
AUGUST,NOVEMBER, DECEMBER (PEAK)
Those who will buy Per Pack

Kutsinta/ 5 pieces 17% 69 Php 7.50 Php 517.50
Suman/ 6 pieces 14% 57 Php 16.20 Php 923.40
Cassava
Cake/Budin/ 1 box 13% 53 Php 23.06 Php 1,222.18
Espasol/ 5 pieces 13% 53 Php 13.37 Php 708.61
Biko/ Sinukmani /
1 box 11% 45 Php 23.25 Php 1,046.25
Puto/ 5 pieces 10% 41 Php 10.23 Php 419.43
Palitaw/ 6 pieces 10% 41 Php 8.58 Php 351.78
Niyubak/
Nilupak/ 6 pieces 12% 49 Php 12.58 Php 616.42
Those who will buy Per Piece
Kutsinta 17% 161 Php 1.50 Php 241.50
Suman 14% 133 Php 2.80 Php 372.40
Cassava
Cake/Budin 13% 123 Php 3.42 Php 420.66
Espasol 13% 123 Php 2.67 Php 328.41
Biko/ Sinukmani 11% 104 Php 2.89 Php 300.56
Puto 10% 95 Php 2.03 Php 192.85
Palitaw 10% 95 Php 1.38 Php 131.10
Niyubak/ Nilupak 12% 114 Php 2.10 Php 239.40
TOTAL MONTHLY COST OF GOODS DURING PEAK
MONTH Php 8,032.45
TOTAL COST OF GOODS PER 7 PEAK MONTHS Php 56,227.15
78
EQUIVALENT POTENCIAL UNIT PROJECTED

PRODUCTS
PERCENTAGE MARKET COST COST OF GOODS
MARCH, APRIL, MAY, SEPTEMBER,

OCTOBER(Lean)
Those who will buy Per Pack
Kutsinta/ 5 pieces 17% 41 Php 7.50 Php 307.50
Suman/ 6 pieces 14% 33 Php 16.20 Php 534.60
Cassava
Cake/Budin/ 1 box 13% 31 Php 23.06 Php 714.86
Espasol/ 5 pieces 13% 31 Php 13.37 Php 414.47
Biko/ Sinukmani / 1
box 11% 26 Php 23.45 Php 609.70
Puto/ 5 pieces 10% 24 Php 10.23 Php 245.52
Palitaw/ 6 pieces 10% 24 Php 8.58 Php 205.92
Niyubak/ Nilupak/ 6
pieces 12% 29 Php 12.58 Php 364.82
Those who will buy Per Piece
Kutsinta 17% 95 Php 1.50 Php 142.50
Suman 14% 78 Php 2.80 Php 218.40
Cassava Cake/Budin 13% 73 Php 3.42 Php 249.66

Espasol 13% 73 Php 2.67 Php 194.91
Biko/ Sinukmani 11% 61 Php 2.89 Php 176.29
Puto 10% 56 Php 2.03 Php 113.68
Palitaw 10% 56 Php 1.38 Php 77.28
Niyubak/ Nilupak 12% 67 Php 2.10 Php 140.70
TOTAL MONTHLY COST OF GOODS DURING LEAN
MONTH Php 4,710.81
TOTAL COST OF GOODS 5 LEAN MONTHS Php 23,554.05
TOTAL COST OF GOODS IN YEAR 1 Php 79,781.20
The cost of goods for year 1 is Php 86,242.91, followed by year 2 with the increase of 20% which
is Php 112,115.91 and lastly for year 3 with the increase of 25% which is Php 151,356.91 .
79
G. PROVISION FOR RAW MATERIALS FOR THE FIRST THREE (3)

MONTHS
Table 10. The table below shows the provision for the raw materials of kakanin products
for three (3) months.
TOTAL
FEBRUARY
JANUARY
MARCH
POTENTIAL PROJECTED
UNIT COST
PRODUCTS MARKET COST OF
(PHP)
FOR THREE GOODS
MONTHS
Per Pack
Kutsinta/ 5 pieces 69 69 41 179 Php 7.50 Php 1,342.50
Suman/ 6 pieces 57 57 33 147 Php 16.20 Php 2,381.40
Cassava
Cake/Budin/ 1 box 53 53 31 137 Php 23.06 Php 3,159.22
Espasol/ 5 pieces 53 53 31 137 Php 13.37 Php 1,831.69
Biko/ Sinukmani /
1 box 45 45 26 116 Php 23.25 Php 2,697.00
Puto/ 5 pieces 41 41 24 106 Php 10.23 Php 1,084.38
Palitaw/ 6 pieces 41 41 24 106 Php 8.58 Php 909.48
Niyubak/ Nilupak/
6 pieces 49 49 29 127 Php 12.58 Php 1,597.66
Per Piece
Kutsinta 161 161 95 417 Php 1.50 Php 625.50
Suman 133 133 78 344 Php 2.80 Php 963.20
Cassava
Cake/Budin 123 123 73 319 Php 3.42 Php 1,090.98
Espasol 123 123 73 319 Php 2.67 Php 851.73
Biko/ Sinukmani 104 104 61 269 Php 2.89 Php 777.41
Puto 95 95 56 246 Php 2.03 Php 499.38
Palitaw 95 95 56 246 Php 1.38 Php 339.48
Niyubak/ Nilupak 114 114 67 295 Php 2.10 Php 619.50
TOTAL COST OF PROVISION FOR RAW
MATERIALS FOR THREE (3) MONTHS Php 20,770.51
 The researcher will budget for three (3) months’ worth of raw materials during the start-
up period of kakanin business.
 The researcher will provide three (3) months’ worth of Php 20,770.51 to have sufficient
raw materials to kakanin products.
80
H. SUMMARY OF OPERATING EXPENSES
Table 12. The operating Cost Estimated to be incurred by the proposed Kakanin
business.
OPERATING AMOUNT PER TOTAL AMOUNT PER YEAR

EXPENSE MOUNTH(PHP) (Php)
Electricity Php 1,300.00 Php 15,600.00
Water Php 720.00 Php 8,640.00
Gas expense Php 500.00 Php 6,000.00
Telephone and Internet Php 600.00 Php 7,200.00
Transportation Expense Php 200.00 Php 2,400.00
Advertisement and
Php 300.00 Php 3,600.00
Promotion
Miscellaneous Expense Php 250.00 Php 3,000.00
TOTAL OPERATING EXPENSE Php 46,440.00
 ELECTRICITY
The researcher estimated electric to be used for 1 month based on the

consumption of lights and machines used is Php 1,300.00.
 WATER
The researcher estimated water consumption to be used for 1 month is Php 720.
Water is expected to use often to maintain the cleanliness and litter free of the store. The
costing is also based to the store practices; wash, dry and sanitize every 30 minutes or as
needed for food safety purposes.
 GAS EXPENSE
The researcher will have a Gas expense. It is used for every operation of store to
produce the kakanin products.
 TELEPHONE AND INTERNET

The researcher estimated telephone and internet expense to be used for 1 month
is Php 600. The researcher preferred to have telephone which they can use to contact
customers and to have a connection to those who have orders. Since trending nowadays is
a package of telephone with internet connection the researcher will used the internet as
access to social media that can be used to promote and advertise the kakanin products.
81
 TRANSPORTAION EXPENSE
The transportation expense is estimated at the cost of Php.200.00. It is used for

sourcing raw materials needed for the production.
 ADVERTISEMENT AND PROMOTION
The researcher will used advertisement and other promotional materials and her
estimated cost for this is Php 300.00. The estimated amount is based on her friend who used
to be owner of a printing press and does the mechanical process and photography.
 MISCELLANEOUS EXPENSE
The researcher assumed that every month for some unexpected matters that may
occur during the operation it can have a Php 250.00 for it.
H. WASTE DISPOSAL AND ENVIRONMENT CONSIDERATION

The proposed Filipino Native Delicacies kakanin production business will have
the following ways of disposing waste in accordance to rules and regulation of the
Municipality, to help the community and also to become one of eco-friendly
 Since Atimonan Municipality used to have a new Municipal Ordinance No. 2011-242
Authored by Councilor Maria Aurora Aragon-Tamayo which regards in using plastic bag,
cellophane, Styrofoam as packaging. As a support for this ordinance the proposed
kakanin business will used reusable plastic containers, box, and paper bags as packaging
of the products.
 There will be two separated trash bin or waste container for biodegradable and non-
biodegradable. It can help to make it easy for the Barangays garbage collector to sort the
garbage. They have a schedule for non-biodegradable and biodegradable. Every Monday,
Wednesday and Friday they pick up all non-biodegradable while Tuesday and Friday will
be the biodegradable.
82
CHAPTER VII
MANPOWER AND ORGANIZATIONAL FEASIBILITY
A. BUSINESS LEGAL STRUCTURE
The proposed legal structure of the business is sole proprietorship. The sole
proprietorship business as we know is the easiest business type to start and to operate. It
is the reason why the researcher choose this type of business even she knows that she
personally responsible for its debts.
The researcher wants to run her own business and as being single proprietorship
she has complete control of the business. Choosing this type of business she can have her
own regulation so that no one can dictate her, to what to do and not do to her business.
The researcher will be the one who will operate and manage the proposed business with
her passion and desire she will give her full effort to achieve success.
The proposed business will be named under the researcher’s nickname it plans to
call as “Gracia’s Delicious Delicacies”.
A sole proprietorship business needs some government permits, they are

determined as follows:
Permits Amount (php) Frequency of payment

BIR Permit Php 1,000.00 During star- up
DTI Permit Php 500.00 During star- up
Business Plate Php 80.00 During start up
Barangay Clearance from
Zone I Php 60.00 During star- up and annually renew
Mayor's Permit Php 500.00 During star- up and annually renew
Health Certificate Php 350.00 During star- up and annually renew
Sanitary Inspection Fee Php 30.00 During star- up and annually renew
Tax Clearance Php 50.00 During star- up and annually renew
Certification Fee Php 20.00 During star- up and annually renew
Building Inspection Fee Php 120.00 During star- up and annually renew
Electrical Inspection Fee Php 200.00 During star- up and annually renew
Garbage Fee Php 400.00 During star- up and annually renew
83
B. DIMENSION OF ORGANIZATIONAL STRUCTURE
B.1 Job Designs, Roles and responsibilities

Table B.1 Job Designs, Roles and responsibilities
To provide an efficient and effective management of the proposed Kakanin Business, the
following job description and job specification for each personnel is defined.
Roles and Qualification and

General Functions Job Title QTY
Responsibilities Skill Requirement
 To manage the store  Must have Bachelor
and ensure that they Degree and must be a
can achieve their dedicated and
objectives. trustworthy person
 To monitor if they
are consistent in
 Must possess good
following the standard
leadership skills.
operating procedure
(SOP).
 Identify the needs of
the inner customers
which are the  Must be optimistic
employees and outer and can work under
customers which are pressure
the blood line of the
business.
Manager/
Managing/  To make appropriate
Cahier/
Cashiering / and effective strategies  Must be flexible 1
kakanin
Kakanin producer to gain additional sales ,can do multi- tasking 
Producer
for the business.
 Assist customers and
serve customers
 Must be
courteously. Make
knowledgeable in
them feel that
Accounting / Book
“customer is always
keeping
first “prioritize their
wants and needs. 
 Operate the cash and
 Attended some
ensure that all bills
trainings and seminars
received are registered
related to proper
to make accurate
management
reports on daily sales.
 To monitor the daily  Must have
sales and expenses of knowledge in the kind
the store. of business they into.
84
 To serve delicious  Must be expert in

and freshly made making kakanin
kakanin. products.
 To ensure that the  Must have a passion

kakanin products are on making different
passed to the standard. kakanin product
 To ensure that the  Must be responsible

appearances are all and dedicated to their
presentable. job.
 To welcome the  Must be hardworking

customers in and have a good
courteously way. working attitude
Kakanin
Kakanin producer/  To attend them and  Must be a good
Producer/Sale 1
Saleslady give assistance on their follower, an efficient
slady
needs and effective one.
 To make deal with  At least Secondary

the customers Graduate
 To organize the
 Have an initiative and
store and ensure that it
dependable worker.
is litter free and clean
 Must be a jolly type

 To manage and person, can approach
monitor the product customers well.
display and make it
always presentable
 Must be good and
sales talk.
85
B.2 Organizational Structure
MANAGER/ CASHIER
KAKANIN PRODUCER/ SALESLADY
Figure B.2 Organizational Structure
This figure shows the organizational structure of the Kakanin business. It demonstrate
that the business have two employees which have double role, task and responsibilities to
perform. Since the proposed business legal structure is sole proprietorship the owner itself
will handle the managerial position and the same time she will be the cashier. The other
employee who is Kakanin producer / Saleslady will report directly to the manager/ cashier. It
also illustrates that both employees will maximize their duty due to double responsibilities
they have.
86
Table B.1 Assessment of Taxes and Regulatory Fees for Sole Proprietorship
ASSESMENT/ PAYMENT
BUSINESS
Business Tax Regulatory Fees
STRUCTURE
New Applicant Renewal (Minimum)
Assessment of MPF- 500

Business Tax (based SIF- 350
on Local tax Code) HC- 30
depends on summited TC- 50
Sole Proprietorship Gross Sales/ Receipt GF- 600
1/10 of 1% Capital CF- 50
Investment but not less BIF- 120
than Php 100 EIF- 200
Surcharge of 15% on PIF- 60
tax if not paid on time BP- 80
Sticker-50
TOTAL- 2,090.00
The payment of business is every 20th day of the quarter (January, April, July, and
October) when it fails to comply there is charges or penalty that we need to pay.
MPF- Mayors Permit Fee- ranges from Php. 500 up to 5,000; it depends on the size of area.
SIF- Sanitary Inspection Fee- ranges from Php. 350 up to 700; it depends on the size of area.
HC- Health Certificate
TC- Tax Clearance
GF- Garbage Fee
CF- Certification Fee
BP- Business Plate, this is for new applicants
BIF- Building Inspection Fee (c/o Engineering Assessment)
EIF- Electrical Inspection Fee (c/o Engineering Assessment)
PIF- Plumbing Inspection Fee (c/o Engineering Assessment)
Note: All regulatory fees indicated above have to be renewed annually.

87
C. MAN POWER RESOURCE SCHEDULING

C.1 Reporting Days
Table 3.1 Employees Reporting Days
Table 3.1 illustrates the reporting days of each employee in the kakanin business. Each
employee has one (1) rest day every week. The Manager / Cashier Rest Day are every
Monday.
 When Manager/ Cashier is rest day the Saleslady/ Kakanin Producer will take charge
on the responsibilities left by the Manager/ Cahier and perform the job role.
 On the other hand when the Saleslady/ Kakanin producer is on Rest Day the
Manager/ Cashier will return the favor by doing the job role left by the Saleslady/
kakanin Producer.
C.1 Reporting Hours
Table 3.2 Employees Reporting Hours
Table 3.1 illustrates the reporting hours of each employee in the kakanin business.
 Each employee has one (1) hour for the lunch time and will be given 15 minutes break
time. When one of them are on break time the one who left well maximize his/ her
duties and fill the job left by the one who’s having break.
 The manager/ cashier have longer reporting hours, to open and close the store.
88
D. SCHEDULE OF SALARIES AND BENEFITS
Table 4. Schedule of Salaries and Benefits
Monthly Benefits
Monthly Basic (Employers Contribution) Total Salaries and
Manpower Resources
Salary (in Php) Benefits (in Php)
SSS Phil Health
Manager/ Cashier Php 3,600.00 267.8 137.5 Php 4,005.30

Saleslady Kakanin
Php 2,500.00 194 137.5 Php 2,831.50
Producer
Total Monthly Expenses for Salaries and Benefits Php 6,836.80

Annual Salaries and Benefits Php 82,041.60
Table 4. Illustrates the amount of salaries and benefits of the employees of Kakanin
business, the salaries was set by the researcher while the monthly benefits is according to the SSS
contribution table 2018 on their website, same as the Phil health it came from the premium
contribution table 2018. The amount of monthly benefit contribution is according to the range of
their basic salaries.
 The monthly expense for salaries and benefits is Php. 6,836.80

 The annual is the total twelve (12) montly expenses for salaries and benefits and
computed as Php 82,041.60
Table 4.1 Dividend
13th month pay Php 6,100.00
Table 4.1Ilustrates the amount of Dividend. It is portion of business earnings. It

usually called the 13th month pay. It is the annual salaries and benefits plus the total monthly
basic salary; it is computed as Php 6,100.00.
89
E. CORE VALUES OF THE PROPOSED BUSINESS
A business with good and strong core values can earn the trust of their customers
and can help them make the right decisions and guide to their daily working behavior.
Some of the most significance principles that the researcher would like to instill in the
proposed business are:
 Fun
 Have fun create smile and have a spirit of joy.
 Provide a great work environment.
 Make work enjoyable.
 Accountability
 Assume personal responsibility and accountability to the tasks, roles, and
responsibilities, in order to support a high-performing culture.
 Customer Satisfaction
 Consider the customers in all we do.
 Providing them with a great product and quality service.
 Make them feel that they are always first.
 Built a Good customer relation.
 Teamwork
 Work together to achieve the objectives, knowing that working as a team makes
them stronger than solo efforts.
 Value each other contributions and make them grow.
F. HUMAN RESOURCES DEVELOPMENT PROGRAM
Human resource development is a program that would help employee develops

their personal and organizational skills, knowledge, and abilities. The program of the
training and career development for employees also encourage them to continue to
develop their skills retain and motivate them. This program can be the source of
knowledge, understanding and awareness to the current employee needs and can give
prediction for the future needs of the employees. The researcher suggested the following
Human Resource program that might help to the Kakanin business.
90
 For the Manager- The researcher will let the manager to attend seminars and training
program which can provide such a fresh perspective on broader economic and social
issues and help them to identify game-changing market moves. This might help the
business to prepare on the following changes and trends in the industry. The researcher
target program for the manager designed to help his/her in terms of:
 Articulate their strengths and growth opportunities as managers.

 Build effective coaching techniques
 Master in problem analysis and decision making
 Develop action plan to improve supervision skills
Manager usually attend seminars and trainings to improved their knowledge skills and
abilities in managing the business, but in the same time gathered techniques that can help to
improved their business and gain a fresh ideas that be useful to form a new strategies which is
appropriate on the business.
 For the Employees- The employees also need seminars and trainings that can help them
improved their skills and capabilities. Through seminars and trainings the employee can
discover their strengths that may help them to become more effective and efficient to
their work. Employees also need a guideline to motivate them to perform in high level.
Employee should;
 Identify their goals

 Communicate the problems to the management
 Have career development they need
 Know resources that can help them.
Employees are the internal customers in the business; if we want to satisfy the outer
customers (the people that we are serving) we need to satisfy first our internal customer which is
our partners in achieving our objectives. We need to take good care of our employees for us to
maintain a good relation with them and provide effective and productive working environment.
91
G. PROFILE OF THE BUSINESS
Nature of the Business : Filipino Native Delicacies kakanin Production Business
Name of the Business : Gracia’s Delicious Delicacies (GDD)
Location : Zone I Poblacion Atimonan, Quezon
Legal structure : Sole Proprietorship
Owner : Ana Grace E. Adona
 Gracia’s Delicious Delicacies is businesses that built with passion and desire in bringing
back the old snack and promote it from the millenials. This business will be located at
202 Doña Aurora Street Atimonan Quezon which the researcher thinks it is the best place
to promote kakanins. The business plans to build different branches which she can
contribute the kakanins one of the chosen place was Atimonan Zigzag Park where we can
catch the attention of the tourist and travellers.
 Gracia’s Delicious Delicacies aims to offer a good quality product that can satisfied the
customers which can be the reason why they will patronized the business. It may also
help our Municipality to be well known in Kakanin products or in Delicacies.
92
CHAPTER VIII
FINANCIAL FEASIBILITY AND ANALYSIS OF FINANCIAL
RATIOS
A. ESTIMATED CAPITAL REQUUIREMENTS
A.1 PRE- OPERATING EXPENSES
The proposed business will need the following pre- operating expenses to set
– up the proposed kakanin business.
Table 1. The one time Pre- Operating Expenses
Permits Amount (php)

BIR Permit Php 1,000.00
DTI Permit Php 500.00
Business Plate Php 80.00
TOTAL Php 1,580.00
The one time pre- operating expenses of the proposed kakanin business are Php 1,580.00.
This expense is one time only.
Table 2. The total Pre- Operating Expenses
Permits Amount (php)

Barangay Clearance from Zone I Php 60.00
Mayor's Permit Php 3,000.00
Sanitary Inspection Fee Php 700.00
Building Inspection Fee Php 120.00
Electrical Inspection Fee Php 200.00
Plumbing Inspection Fee Php 60.00
Tax Clearance Php 50.00
Health Certificate Php 30.00
Certification Fee Php 20.00
Health Examination Fee Php 150.00
Occupational Fee Php 150.00
Garbage Fee Php 400.00
TOTAL Php 4,940.00
93
The total pre- operating expenses of the proposed kakanin business are Php 4,940.00. The
researcher will amortize the pre- operating expenses over three (3) years to make it consistent
with the business financial projection.
Amortization of the Pre- Operating Expenses over three (3) years
Table 2. Amortization of the Pre- Operating Expenses over Three (3) years
Total Pre-operating Expenses Year 1 Year 2 Year 3

Php 1,580.00 Php 526.66 Php 526.66 Php 526.66
A.2 FIXED CAPITAL REQUIREMENTS
The following fixed capital needed to set- up the proposed kakanin business.
Table 3. Fixed Capital Requirement
Paticulars Amount (in php) References

Renovation Cost Php 4,379.00 Chapter VI, Page 72 Table 2
Machines, Equipment's and
Fixtures Php 33,454.00 Chapter VI, Page 74 Table 7
TOTAL FIXED CAPITAL

REQUIREMENTS Php 37,833.00
Depreciation Schedule of fixed Capital Requirement over three (3) years.
Table 4. Depreciation Schedule of Fixed Capital Requirements over three (3) years.
Year 1 Year 2 Year 3

Particulars Amount (in php) Depreciation Depreciation (in Depreciation (in
(in Php) Php) Php)
Renovation Cost Php 4,379.00 Php 1,459.66 Php 1,459.66 Php 1,459.66
Machines,
Equipment's and
Fixtures Php 33,454.00 Php 11,151.33 Php 11,151.33 Php 11,151.33
TOTAL FIXED
CAPITAL Php 37,833.00 Php 12,611.00 Php 12,611.00 Php 12,611.00
REQUIREMENTS
94
Operating Assets at the Beginning of the Fiscal Year
Table 5. Operating Assets at the Beginning of the Fiscal Year
Operating Assets at the Operating Assets at the Operating Assets at the

Beginning of Year 1 Beginning of Year 2 Beginning of Year 3
Php 37,833.00 Php 27,261.98 Php 12,611.00
A.3 WORKING CAPITAL
The following working capital is needed for the proposed kakanin business.
Table 6.Working Capital
Working Capital
Amount per
Particulars over 3 months (in Reference
Month (in Php)
Php)
Salaries and Benefits Php 6,836.80 Php 20,510.40 Chapter VII Page 88 Table 4
Electricity Php 1,300.00 Php 3,900.00 Chapter VI Page 80 Table 12
Water Php 720.00 Php 2,160.00 Chapter VI Page 80 Table 12
Gas expense Php 500.00 Php 1,500.00 Chapter VI Page 80 Table 12
Telephone and Internet Php 600.00 Php 1,800.00 Chapter VI Page 80 Table 12
Transportation Expense Php 200.00 Php 600.00 Chapter VI Page 80 Table 12
Advertisement and
Php 300.00 Chapter VI Page 80 Table 12
Promotion Php 900.00
Miscellaneous Expense Php 250.00 Php 750.00 Chapter VI Page 80 Table 12
TOTAL COST OF Php 10,706.80 Php 32,120.40
WORKING CAPITAL
 The researcher makes an assumption that the kakanin business will allocate working
capital for three (3) months. It is expected the business to pick up three (3) months from
the time it was set up.
 Working Capital are the expenses needed for the business such as Electricity, Water, Gas
expense, Telephone and Internet , Transportation Expense, Advertisement and promotion
Miscellaneous Expense and it includes the Salaries and Benefits of the employees of the
business.
95
A.4 SUMMARY OF ESTIMATED CAPITAL REQUIREMENTS
Table 7. Summary of the Estimated Capital Requirements
Particulars Amount (in Php)
Pre- Operating Expenses Php 6,520.00
Fixed Capital Expenses Php 37,833.00
Provision for Raw Materials for (3) Months Php 20,770.51
Working Capital over 3 Months Php 32,120.40

TOTAL Php 97,243.91
 The proposed kakanin business needed is Php 97,243.91 as estimated capital

requirement to set up the kakanin business.
A.5 SOURCE OF CAPITAL OF THE PROPOSED BUSINESS VENTURE
A.5.1 Source of the Capital Equities
Table 8. Source of Capital from Equities
Source of Funds From Equities Contribution Percentage of Ownership
Ana Grace E. Adona Php 97,243.91 100%
The estimated capital requirement of the proposed business venture is Php 97,243.91.
This capital requirement will be sourced from the owner itself. The owner will shoulder 100% of
the capital and insure that it will come from her savings/ money. The owner disregarded the idea
of borrowing money from any financial institution to avoid conflicts and problems.
96
B. FINANCIAL PROJECTION
B.1 Year 1 to Year 3 Financial Projection
Table 9. Year 1 to Year 3 Financial Projection
PARTICULARS YEAR 1 YEAR 2 YEAR 3 REFERENCE

PROJECTED Chapter V Page 65 Table
226,999.00 295,099.00 398,384.00
REVENUE F.5
LESS: Cost of Goods Chapter VI Page 78 Table
79,781.20 103,715.20 140,015.20
Sold 11
GROSS MARGIN 147,217.80 191,383.80 258,368.80
LESS:
OPERATING EXPENSE
Chapter VII Page 88 Table
Salaries and Benefits
82,041.60 82,041.60 82,041.60 4.1
Chapter VI Page 80 Table
Electricity
15,600.00 15,600.00 15,600.00 12
Water
8,460.00 8,460.00 8,460.00 12
Gas expense
6,000.00 6,000.00 6,000.00 12
Telephone and Internet
7,200.00 7,200.00 7,200.00 12
Transportation Expense
2,400.00 2,400.00 2,400.00 12
Advertisement and Chapter VI Page 80 Table
Promotion 3,600.00 3,600.00 3,600.00 12
Miscellaneous Expense 3,000.00 3,000.00 3,000.00 12
Chapter VIII Page 92 Table
Permits and License 4,940.00 4,940.00 4,940.00 12
Total Operating
133,241.60 133,241.60 133,241.60
Expense
LESS DEPRECIATION EXPENSE
Renovation Cost 1,459.66 1,459.66 1,459.66 Chapter VI Page 73 Table 4
Machines, equipment
11,151.33 11,151.33 11,151.33
and Fixtures Chapter VI Page 74 Table 8
Less Amortization of
Pre- Operating 526.66 526.66 526.66 Chapter VIII Page 92 Table
Expense 13
Total Depreciation
and Amortization of
13,137.65 13,137.65 13,137.65
Pre- operating
Expenses
97
Total Operating
Expenses and 146,379.25 146,379.25 146,379.25
Depreciation Expenses
Income (Loss) before
838.55 45,004.55 111,989.55
Tax
Less: Tax (10%)
83.85 4,500.46 11,198.96
Business Tax
Income (Loss) After
754.69 40,504.10 100,790.60
Tax
 On the first year financial projection, the business will generate a very small profit with
the amount of Php 754.69
 On second year of the business operation, it will have Php 40,504.10 which shows that on
the year 2 of operation there is an increase of sales.
 On the third year of the operation, it will have Php 100,790.60 total revenue. It shows that
the business has progress in every year operation. The business gain sales due to the trust
and loyalty that the customers built from the previous year.
B.2 Analysis of 3 Year Income Projection
 The proposed kakanin business will be profitable beginning on the first year, with the
modes income before tax of Php 838.55. However, on the second year this will increase
at the second year with the percentage of 30% that have the total amount of Php
45,004.55 the increase is the result of being known by the people in the town and lead to
the awareness of others in the existing of the kakanin business. In the third year the sales
increase 35% which generates total revenue of Php 111,989.55. The researcher assumed
that on the third year of operation the proposed business is already established its name
from the local and tourist customers and also gain the loyalty and trust of the consumers.
 The researcher assumed that there is yearly increase of sales but there is no increase in
operating expense which can help to gain more profit.
 The highest operating expense that the business had is the salaries and benefits, which is.
It has the percentage of 62% before tax with the cost of Php 82,041.60. Next to this is
Electricity which has the percentage of 12% with the cost of Php 15,600.00. The kakanin
Business does not have Rental expense because the proponent used their own space to put
up the business.
98
C. ANALYSIS OF THE FINANCIAL RATIO
C.1 TURN- OVER OF OPERATING ASSETS
Table 10. Turn- over of Operating Assets
Particulars Year 1 (in Php) Year 2 (in Php) Year 3 (in Php)
Sales Php 226,999.00 Php 295,099.00 Php 398,384.00
TOTAL OPERATING
ASSET NET OF Php 33,454.00 Php 22,302.67 Php 11,151.33
DEPRECIATION
Particulars Year 1 Year 2 Year 3
Turn- Over of Operating Asset Net of Depreciation 6.79 13.23 35.73
 On the first year, the kakanin business will generate Php 6.79 in sales for every Php 1.00
investment in total assets.
 On the second year, the kakanin business will have Php 13.23 in sales for every Php 1.00
remaining investments in total operating assets due to the 30% increase in total revenue
in second year.
 On the third year, the business will generate Php 35.73 in sales for every Php 1.00
remaining investments in total operating assets. The increase in the turnover of
operating assets came from the 35% increase in total revenue in year 3 operation of the
kakanin business.
 In every year the kakanin business has a progress since the amount of revenue over the
years is getting bigger. It shows the improvement in each year.
C.2 SALES TO EQUITY RATIO
Table 11. Sales to Equity Ratio
Sales Php 226,999.00 Php 295,099.00 Php 398,384.00

Equity Php 97,243.91 Php 97,243.91 Php 97,243.91
99
Sales to Equity 2.33 3.03 4.10
 On the first year, the kakanin business will generate Php 2.33 in sales for every Php 1.00
investment in total equity.
 On the second year, the kakanin business will have Php 3.03 in sales for every Php 1.00
investments in equity due to the 30% increase in total revenue in second year.
 On the third year, the business will generate Php 4.10 in sales for every Php 1.00
investments in equity. The increase in the sales to equity ratio was come from the 35%
increase in total revenue in year 3 operation of the kakanin business.
 Overall the kakanin business have a good potential since the sales improve in every year
it also means that it can cover the investment in equity.
C.3 GROSS MARGIN ON SALES
Table 12. Gross Margin Sales
Php 226,999.00 Php 295,099.00 Php 398,384.00

Sales
Php 79,781.20 Php 103,715.20 Php 140,015.20

Cost of Goods
Php 147,217.80 Php 191,383.80 Php 258,368.80

Gross Margin
Gross Margin on Sales 0.65 0.65 0.65

100
 On year 1 up to year 3 the gross margin of the proposed Kakanin business is consistently
65% over cost of goods.
 The gross margins on sales from year 1 up to year 3 remain constant because the price
and unit cost used by the proponent did not change over the year.
C.4 RETURN ON SALES (OPERATING INCOME TO SALES)
Table 13. Return on Sales (Operating Income to Sales)
Sales Php 226,999.00 Php 295,099.00 Php 398,384.00
Income Before Tax Php 838.55 Php 45,004.55 Php 111,989.55
Financial Ratio Year 1 Year 2 Year 3
Return on Sales Php 0.00 Php 0.15 Php 0.28
 On the first year of the operation, the Kakanin business did not earn operating income
because the business is just started to cope up to the expenses it had.
 On the second year of the operation, the business was already adjusts and starts to
generate Php 0.15 income for every Php 1.00 sale.
 On the third year of the operation, the operating income improved to Php 0.28 for every
Php 1.00 sale.
 Overall the operation of the business is what we expected on a newly open business it
starts at zero then improve in each year and finally see how it develop and improve.
101
C.5 RETURN ON OPERATING ASSETS (OPERATING INCOME TO OPERATING

ASSETS RATIO)
Table 14. Return on Operating Assets (Operating Income to Operating Assets Ratio)
Total Operating Asset Net of

Php 33,454.00 Php 22,302.67 Php 11,151.33
Depreciation
0.03 2.02 10.04

Return on Operating Asset
 On the first year of the business operation, the return on operating assets is Php 0.03 for
every Php 1.00 investments in the operating assets.
 On the second year of the business operation, the return is Php 2.02 for every Php1.00
investment in the operation assets.
 On the third year of the business operation, the return is Php 10.04 for every Php 1.00
investments in the operation assets
 In overall the Kakanin business shows that it is a very worth it investment even though
in the first year business operation, the return of investments in the operating assets is
relatively small but as time goes by the return of investments increases in each year.
C.6 RETURN ON EQUITY (OPERATING INCOME TO EQUITY RATIO)
Table 15. Return on Equity (Operating Income to Equity Ratio)
Total Equity Php 97,243.91 Php 97,243.91 Php 97,243.91

102
0.01 0.46 1.15

Return to Equity
 On the first year, the proposed kakanin business will earn a 0.01 operating income that
can return to the proprietor’s equity.
 On the second year, the business will return an operating income of Php 0.46 for every
Php 1.00 of proprietor’s equity.
 On the third year, the business will gain Php 1.15 operating income that is for every Php
1.00 of proprietor’s equity.
 In overall the kakanin business is capable of returning and making the proprietors equity
bigger each year, due to the growth and progress that the kakanin business had. As it
shows it takes time to harvest, since during the first year operation there is no return
because we are just investing at first and wait until it grow. Hence investment to the
proposed business worthwhile despite the potential business risk.
C.7 ANALYSIS OF PAYBACK PERIOD
Table 16. Analysis of Payback Period
Financial Value Year 1 (in Php) Year 2 (in Php) Year 3 (in Php)
Profit (Loss) After Tax(Net
Php 754.69 Php 40,504.10 Php 100,790.60
Income after tax
Cumulative Profit after Tax
Php 754.69 Php 41,258.69 Php 142,049.39
(Retained Earnings)
 The payback period of the Filipino Native Delicacies “kakanin” business is beyond three
(3) years. During that period of time the investor does not need to wait more than three
(3) to mid- four years before the pay-out of the return of her investment.
103
CHAPTER IX
CONTRIBUTION TO COMMUNITY/CORPORATE
SOCIAL RESPONSIBILITY
A. SOCIAL RESPONSIBILITY TO THE PUBLIC
A.1 RIGHT TO SAFETY
 The researcher will ensure that the employee’s work place is safe and free from the
accident. She will make sure that the employees are knowledgeable in terms of safety and
security for them to handle the unexpected situation that may occur during working
hours.
 The researcher will ensure the safety of the customers in terms of providing them a
secured store and giving them a good quality, safe and clean products.
 The researcher will provide food safety policy for her store to serve as a guideline how to
clean and to prepare their products. She will also ensure that the Hazard Analysis and
Critical Control Points (HACCP) principle will be applied
 All equipment’s and materials used for production will undergo on standard cleaning
procedure and will be sanitize before using it.
 The researcher will ensure that all employees have a good hand washing and sanitizing
practices.
 The researcher will ensure that cleanliness of the store will always monitor by the
assigned personnel.
 The researcher will provide a smoking area for those customers who cannot avoid
smoking and to keep away from other customers.
 The researcher will provide a Fire Extinguisher and Fire Exit for emergency purposes.
 The kakanin business will not use any preservative that may be harmful for the
customer’s health.
104
A.2 RIGHT TO BE INFORMED
 The customers will be informed about the prices of each kakanin products.
 The customers will informed about the contents of each products.
 The customers will surely inform about the updates and changes, if there is any.
 The proponent will cascade all the information regarding on the kakanin products
they offered.
 The proponent will provide survey and suggestion box which the customers can free
to write their opinions, suggestion and recommendations. This can help to improve
the service and food that the store serve and offered.
 The proponent will provide packaging with contact number indicated on each
packaging used for kakanin products. This is to informed the customers were to
contact if there’s a concerns, problems and also if they want to set an orders.
A.3 RIGHT TO CHOOSE
 The customers will be given a freedom to choose where they want to set.
 The customers will be given a freedom to choose what product they want to be sold.
 The customers may choose if they want to order for dine- in or for take-out.
A.4 RIGHT TO BE HEARD
 The customers will be allowed to give feedbacks and comments about the services
and products given by the employees of the kakanin store.
 Customers have freedom to voice-out their opinions and suggestions that might help
the business to improve their products and services. Kakanin store will provide
freedom wall to write their wants and feelings.
 The kakanin store will make an account on social media like face book to use as a
tool of communication with the customers or in the community. This is open to
public so everyone can have a chance to communicate their discontentment in
kakanin products.
105
A.5 PRIVILEGE TO BE INVOLVED
The researcher chooses to get involved in the various program of the

municipality together with other Atimonanins who promotes Atimonan. Every year
Atimonan Celebrates Town fiesta and foundation during these events they set night
market or a stall which we can find foods or things that Atimonan can offer. The
researcher will joined in these events to make Atimonan known for its delicacies and
the researcher will give privilege to the customers by letting them to be part of its
advocacy “tangkilikin ang sariling atin” in every product they buy 50% of each will
goes to Local Government fund for the projects that can help in promoting and
developing Atimonan Quezon.
B. SOCIAL RESPONSIBILITY TO THE COMMUNITY
B.1 EMPLOYMENT AND PROPER WAGES
 The proposed kakanin business will open an opportunity to the residence of

Atimonan who need employment.
 The proponent will give proper wages according to the agreement of the
employee and its management.
B.2 EDUCATION AND TRAINING
The proponent will ensure that employees will undergo on trainings and seminars
that can help to improve the knowledge and skills of the employees. That might help
the business vision, mission and core values be possible and visible.
B.3 RIGHT TAXES TO THE GOVERNMENT
The Kakanin business legal structure is sole or single proprietorship in alignment

of this, the kakanin business need to comply in paying right tax to the government at
the given period of time. The kakanin business will pay 10% tax on its gross income
and it is according to the legal structure the business had. This tax goes to the local
Government which serves as their fund on the projects that can help to develop and
improved the municipality
106
B.4 COMMUNITY DEVELOPMENT BY PROVIDING ADDITIONAL

PRODUCT
The researcher of kakanin business will enhance the kakanin and make it more
presentable because, the researcher thinks that kakanin can be the product that can
makes Atimonan known for its delicacies. The researcher also believes that we can
make kakanin industry in our own town.
B.5 CONTRIBUTION TO PROTECT AND PRESERVED THE

ENVIRONMENT
 The researcher will make sure that all the disposal of the kakanin business will
put and segregate in a proper way and in a proper place.
 The proponent of kakanin business will set kakanin store to a green store
which is against in using plastics and this is also municipality ordinance that
Councilor Ma. Aurora A. Tamayo has been established in Atimonan Quezon.
The proponent will follow the Municipality ordinance and encourage
customers in using reusable bags and papers bags which is good for the
environment.
C. BUSINESS ETHICS AND PRACTICES
The researcher would still the following core values in the proposed business:
 Fun - The researcher includes fun in core values to provide a great environment which
they can feel the spirit of joy and it helps to maintain a bright disposition while working.
 Accountability – The researcher insure that employees had the traits of being responsible
to every tasks, roles, and responsibilities, in order to support a high-performing culture.
 Customer Satisfaction – The kakanin business is a kind of business who offered

products and services because of this, we need to consider the customers in all we do just
to achieve the satisfaction they need.
 Teamwork – The researcher thinks that if there’s a presence of unity it leads to

teamwork and working as a team makes them stronger than solo efforts.
107
CHAPTER X
SUMMARY CONCLUSION AND RECOMMENDATION
The researcher decided to pursue the feasibility study of setting up a kakanin
business to promote the variety of kakanin, on the other side turned out to be a profitable
venture.
In this study the researcher used stratified random sampling to select respondents
randomly. Since Atimonan is municipality with 38 Barangays and 4 Poblacions the
researcher chose the Barangays and the Poblacions which she get the 100 respondents for
her research.
To study the proposed kakanin business the researcher used descriptive method to gather
data and information needed to this study. All collected data and information that the
researcher had been gathered will be a great help to the reader, to have a better
understanding about the study.
For the development of research the researcher used methods to collect secondary data.
These methods are library to find basis and e- library research to get more information.
She also gets primary data through interview, process observation, customer’s behavior
observation and foot traffic.
A. DESCRIPTION OF THE BUSINESS VENTURE
The proposed kakanin business will offer variety of products such as

kutsinta, suman, cassava cake, espasol, biko, puto, palitaw and niyubak/
nilupak and other kakanins. Those kakanins will be made by the kakanin
expert that the business will hire to make the production.
The proposed kakanin business will be located at the 202 Doña Aurora St.
Zone I Poblacion Atimonan Quezon. The chosen location is very accessible
because it is near from the schools, bank, and church where most people are
passing. The researcher thinks that it is the best place because more people
are passing by which means more opportunity of sales increase.
The potential customers of kakanin business are the residents of Atimonan,

and the tourist and travellers that passing by in Atimonan Quezon. Based on
the data that the researcher gathered from the market survey 17% of the
market who’s willing to buy is from the age group of 46-50 years old and the
majority of them are female married. Most of them are laborer.
108
The researcher decides to study this kind of business because she wants to
enlighten people that it is a good source of income. It is easy to start because
it has low start-up cost and most of them can afford it. The researcher aim to
encourage future investors to venture in the similar business.
B. MARKET FEASIBILITY
The target market of the kakanin business are the residents in Barangay Zone
I, Zone II, Zone III, Zone IV, Barangay Angeles, Barangay Caridad Ibaba,
and Barangay Tagbakin and the tourist and travellers that passing by in
Atimonan Quezon.
The major competitors of the proposed business are those people whose
selling kakanin products. Based on the survey most of the total respondents
go to Atimonan Public Market which we can find kakanin vendors it has
32%.The proponent of kakanin business will intend to catch the attention of
the residents by using leaflets and by using social media.
The proposed Kakanin store will source its supply from these local suppliers:
 Electricity - QUEZELCO Atimonan, Quezon

 Water - Water District and Water Station Atimonan, Quezon
 Telephone - GTSI Atimonan, Quezon
 Equipment - Atimonan Quezon, Gumaca or Lucena City
 Internet Connection – F1 Internet Atimonan, CATV
 Ingridents -Pag-asa Mart, Capparros mart, South Emerald. Public Market
On the first year the estimated sales revenue is Php 226,999.00 while the
second year the proponent assumes 30% increase with the total amount of
Php 295,099.00 and lastly in the third year it increase the assumption of the
researcher with 35% it sales is Php 398,384.00.
C. TECHNICAL AND OPERATIONAL FEASIBILITY
The proposed kakanin business will be located at the 202 Doña Aurora St.
Zone I Poblacion Atimonan Quezon. The chosen location is very accessible
because it is near from the schools, bank, and church where most people are
passing by. The researcher also chooses this location to easily source the
needs for the production of kakanin.
109
The size of the store has an area of 80 square meters and it is properly
arranged according how the stores are going to operate. The store will
undergo renovation and repainting for 3 days which have the cost of Php
4,379. 00 including the labor and this renovation expense will be depreciated
for three (3) years and going to have a yearly depreciation expenses for
total cost of Php 1,459.66.
The kakanin store needed machine, equipment’s and fixtures and to provide it
there will be expenses with the total cost of Php 33,454.00. The kakanin
store also has yearly depreciation expenses for this with the total cost of
Php 11,151.33. It will cover for three (3) years.
The proposed kakanin business is open on Monday- Sunday from 8 o’clock in

the morning until 5 o’clock in the afternoon.
D. ORGANIZATIONAL AND MANPOWER FEASIBILITY
The proposed legal structure of the business is sole proprietorship. The

researcher wants to run her own business and as being single proprietorship
she has complete control of the business.
The kakanin business has two employees which have double role, task and
responsibilities to perform. There are the manager/ Cashier and the other one
is the kakanin producer/ saleslady.
The employees’ salaries of kakanin business were set by the researcher while
the monthly benefits are according to the SSS and PhilHealth contribution
table 2018. Their monthly expense for salaries and benefits is Php. 6,836.80
while their annual was computed as Php 82,041.60
The researcher will let the manager to attend seminars and training program
which can provide such a fresh perspective on broader economic and social
issues and help them to identify game-changing market moves.
The employees also need seminars and trainings that can help them improved
their skills and capabilities. Through seminars and trainings the employee
can discover their strengths that may help them to become more effective and
efficient to their work.
110
E. FINANCIAL FEASIBILTY
The proposed kakanin business will needed is Php 97,243.91 as estimated

capital requirement to set up the kakanin business. This capital requirement
will be sourced from the owner itself. The owner will shoulder 100% of the
capital and insure that it will come from her savings/ money.
The projected revenue of kakanin business on the first year is Php

226,999.00 then on second year it will have an increase of 30% which had
total of Php 295,099.00 and lastly when it comes in third year the increase
will be 35% because the business had already establish its name and it leads
to have total revenue of Php 398,384.00.
The proposed revenue on the first year is Php 184.69, this will increase at the
second year with the percentage of 30% that have the total amount of Php
39,934.09 the increase is the result of being known by the people in the town
and lead to the awareness of others in the existing of the kakanin business. In
the third year the sales increase 35% which generates total revenue of Php
100,220.59. The researcher assumed that on the third year of operation the
proposed business is already established its name from the local and tourist
customers and also gain the loyalty and trust of the consumers.
Return on Operating Assets on the first year of the business operation, the
return on operating assets is Php 0.03, second year have Php 2.02 and the
third year have return of Php 10.04 these are for every Php 1.00 investments
in the operating assets. In overall the Kakanin business shows that it is a
very worth it investment even though in the first year business operation, the
return of investments in the operating assets is relatively small but as time
goes by the return of investments increases in each year
The payback period of the Filipino Native Delicacies “kakanin” business is

beyond three (3) years. During that period of time the investor need to wait
three (3) years before the pay-out of the return of her investment.
111
F. CONTRIBUTION TO COMMUNITY / CORPORATE SOCIAL

RESPONSIBILITY
The proposed kakanin business have a social responsibility to the

community which provide people right to safety, information, to choose, to
be heard and the privilege to be involved. These are the rights that should be
evident in the business venture.
The proponent also have the social responsibility to the community which
includes the employment and proper wages, education and trainings, taxes to
the government community development and its contribution to protect and
preserve the environment by helping and be one of those who’s following the
new ordinance of the Municipality which is against in plastics and promote
the paper bags and other reusable bags.
The researcher would still the following core values in the proposed
business: Fun, Accountability, Customer Satisfaction, and Teamwork.
G. RECOMMENDATION
The Feasibility Study of Setting up a Filipino Native Delicacies “kakanin” Business

in Atimonan Quezon helps Atimonanins to be aware that kakanin can be a good
business. This also helps them to form a new concept that they can use to establish this
kind of business.
The researcher recommends that the proponent should form new concepts and
market strategies that are unique from their competitors. Gather more
information that can give more knowledge about the business you want into.
The researcher also recommended to the proponent to make an accurate list of

expenses to monitor the sales that can help to find out if the business is doing
well and can be expand. If, it is possible find accurate location that suits on your
business.
The researcher also recommended this kakanin business to the home based
entrepreneurs because it easy to set up. But they must have the passion to this
kind of business.
112
The researcher also recommends to the proponent of this kind of business to

make it involve in Local Government Unit (LGU) activities like selling your
product in their events like in fiesta they have night market, or a stall that have a
variety of product to offer and kakanin can be included to this products.
The researcher concluded that the proposed kakanin business is feasible in terms of
marketing feasibility, technical and operational feasibility, organizational and manpower
feasibility and financial feasibility. Therefore the researcher recommends this type of business to
the people who look for a good business to set up.

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1

QUEZONIAN EDUCATIONAL COLLEGE INC.

 It cannot also store at hot temperature which can cause spoilage of

 The competitors have already established a name on the market.

C. LOCALE OF THE STUDY

D. STATEMENT OF THE PROBLEM

 The appropriate promotion strategies that can be used in kakanin

 Technical and Operation Aspects

 Organization and Manager Aspects

 The organization and man power needed for this business

 Kakanin business is a home- based type of business there’s no need for a

E. SIGNIFICANCE AND IMPORTANCE OF THE STUDY

 The Businessmen / Entrepreneurs

 The BSBA Students

 The Future Researchers

F. SCOPE & LIMITATION OF THE STUDY

 The coverage of this business is up to 3 years financial projections.

SELECTED BARANGAYS Number of Respondents

Barangay Zone I, Poblacion 16

Barangay Zone II, Poblacion 13

Barangay Zone III, Poblacion 7

Barangay Zone IV, Poblacion 12

Barangay Caridad Ibaba 22

Market and Industry Profile

(Analysis of Competition) Feasibility

 Government Regulation Study of

Financial Feasibility and

Significance to Community Contribution to Community

It is a liquid that comes from, the grated meat of a brown

The primarily made from coconut milk also known as

A synthetic aromatic polymer made monomer styrene.

A type of steamed rice cake, accompaniment to savory

A. CURRENT INDUSTRY TRENDS AND PRACTICES OF

Trends in snack foods3

A creamy coconut filling with a dark chocolates shell are

These unique treats first began as a Florida tradition, and

Whilst premium chocolate confectionery has traditionally maintained a relatively small

Chocolate confectionery in the US is largely controlled by two dominant companies – The

B. CURRENT INDUSTRY TRENDS AND PRACTICES OF

Japan rice crackers6

Sweet senbei came to Japan during the Tang

C. CURRENT INDUSTRY TRENDS AND PRACTICES OF

Chocolate moron is steamed rice

Moron or suman with chocolate mix is

Filipino Consumers Love a Good Snack9

Snack as a source of nutrition

Taste and health attributes count

D. PRACTICAL TIPS IN SETTING UP A FILIPINO

Tips and Strategies for Starting your own Business 10

There is so much to learn about starting a new

 Create a Business Plan

 Don’t Over Capitalize

 Understand the Nature of What you are selling

 Market your Business Effectively

 Read as Much Literature as you can

E. MARKET STRATEGY FOR FILIPINO NATIVE