FRUIT BREAD BAKESHOP

PUROK PINYA, BARANGAY DICAYAS DIPOLOG CITY

A Feasibility Study Presented to the

Faculty of College of Business Education

St. Vincent’s College Incorporated

Dipolog City, Philippines

In partial fulfillment

of the Requirements for the Degree of

Bachelor in Marketing Management

By:

Denisse B. Agnis

Nikka Nicole R. Aniñon

Christine Jackie Taala

Joerald F. Tanquis

Karen Lou A. Jeolin

Jewel Colleen Cardenas

 Republic of the Philippines
ST. VINCENT’S COLLEGE INCORPORATED
Padre Ramon St. Estaka, Dipolog City, 7100

APPROVAL SHEET

This Feasibility Study entitled “FRUIT BREAD BAKESHOP” in partial

fulfilment of the requirements in the course of FS 41(Feasibility Study) has been
examined, and it is recommended for acceptance and approval for oral defense.

ALDRIEN D. CATIPAY, CTT, MBA

Adviser

APPROVED by the Panel of Examiners on Oral Defense with the rating

of________%
PASSED.

Panel of Examiners

REJAY B. VILLAMOR, CPA, MBA, CTT DEXTER E, ZAYAS, MBA, MPM,

SPBE
Member, Panel of Examiner Member, Panel of Examiner

ANGEL D. CALAGUIAN, CPA, MBA, CTT

Chair, Panel of Examiner

Accepted and approved in partial fulfillment of the requirements for the course
FS 41(Feasibility Study) leading to the degree of Bachelor of Science in Business
Administration Major in Marketing Management.

DR. JOSEPH G. REFUGIO, FBE

Dean, College of Business Education

ii
 St. Vincent’s College Incorporated

ACKNOWLEDGEMENT

We heartily express our appreciation to the people who have suggested and
shared their ideas. For the invaluable assistance and in exorable support given
by the following that were instrumental in the preparation and fulfillment of this
research work.

To our beloved parents for their unending understanding and encouragement,

for the moral and financial support in the pursuance of this study that maybe
without them, this work, would not have been made possible.

To our research instructor, Mr. Aldrien Catipay, for suggesting and imparting
knowledge on this research for the improvement of the study.
To the panel members, for their constructive criticism and recommendation for
this study.

Foremost to the Almighty God for giving us the courage and strength for the
success of this challenging academic project.

The Researchers

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 DEDICATION

We would like to dedicate this, to our beloved parents,

who engaged remarkably in this research
who gave us a moral support, financial assistance as well as
their personal motivation and care.

To our dearest sisters, brothers and friends,

who shared their knowledge and gave us the virtue
to pursue our works through their continuous support.

Lastly, to our Almighty God,

who gave us a valuable life we had,
if it’s not for Him we won’t have a chance to be in this study
We are very thankful that through His support
It contributed to the success of this endeavor.

The Researchers

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 EXECUTIVE SUMMARY

Name of the Proposed Project: Fruit Bread Bakeshop

Type of the Business : Manufacturing

Type of Organization : General Partnership

Name of the Partnership : Healthy-Giving Partnership

Location of the Partnership : Dicayas, Dipolog City ZN

Name of the Proponents : Joerald F. Tanquis, Christine Jackie B. Taala,

Denisse Agnis, Karen Lou A. Jeolin,

Nikka Nicole R. Aninon, Jewel Colleen Cardenas

Name of the Business

The name of the proposed business is “Fruit Bread Bakeshop” focuses on

selling a healthy variety of breads. In order for the customers to be satisfy, we will

deliver and assure that the product we sell has good benefits and worth the price. Aside

from that, we entrust the service we provide will give customers satisfaction. We

encourage our potential customers to healthy living by indulging in our fruit bread

products. This business is offering three varieties of fruit breads at two specific sizes

the “bite size” and “loaf size”, which has a benefit into one’s health and our display

store facing the National Highway and residing near subdivisions, which can be seen

directly by the passersby. Aside from the minimalist eco-friendly bread bag, our

product is always freshly-baked. The said business will be organized as General

Partnership.

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Title of the Study

The title of this study is “The Establishment of Fruit Bread: A Feasibility

Study”. A Feasibility study is important to determine if Fruit Bread Bakeshop is

feasible through analysis, study, investigation, research and evaluation of ideas. It is an

important factor for it is the estimation and viability of ideas where the business needs

to be thought effectively, evaluated and perceived well so that it will take covers the

upcoming and following years to be still feasible business.

Business Location

Choosing a location for a business is a very important factor in starting a

business because it is where the market can easily access and find your location. It is

an advantage of the business if it has neighborly location for it is accessible and a

convenient place for them to stay while having healthy snacks. They would rather

choose the location that does not give so much hassle on their part.

We choose our location at Purok Pinya, Barangay Dicayas Dipolog City along

the National Road and situated 150 meters away from the Madison County

Subdivision entrance because it is easily reached, visually attainable and a

commodious site.

Nature of the Business

Fruit Bread Bakeshop is a general partnership business that intends to serve a

healthier and guilt-free bread from the local fruit in the area. The goal of the business

is to serve a high quality fresh, healthy and affordable bread to its customers. Thus, our

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delivery services are divided into two categories: bulk order delivery and Food Panda

delivery this is to broaden the scope of our market or the marketability of the “Fruit

Bread Products”.

Business Logo

Description of the Logo

Fruit Bread integrated the word “fruit” in the company’s logo which means

our bread flavored with fruits. This will be determined that our bread is made with fruit

that gives nutrients to our food as Filipinos specially Dipolognons love sweet treats,

yet the company’s Fruit Bread are guilt-free, no artificial sugar added, and freshly

baked. With a tagline “All you knead is loaf” only at Fruit Bread Bakeshop. The word

knead means technique of working a dough mixture to make a smooth and cohesive

mass. It can be done by hand or mechanically. The business tagline indicates that the

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company strongly gives healthy food for the people, and the company cares about the

health of our consumers.

Brief Description of the Project

The company sells three types of locally produced fruit bread, including guava,

banana, and pineapple, which may be purchased in bulk, created (baked), and

presented in our display area to attract clients. Thus, it is freshly baked and contains no

added sugar, which customers will like. Additionally, our bread products include

minimum eco-friendly packaging. Thus, our delivery services are separated into two

categories: bulk order delivery and Food Panda delivery. This is to increase the

marketability of our "Fruit Bread Products."

Total Project Cost

The total project cost is 1,500,000 pesos from the personal savings of each partner.

Partner Contribution
Joerald F. Tanquis 250,000.00

Christine Jackie B. Taala 250,000.00

Denisse Agnis 250,000.00

Karen Lou A. Jeolin 250,000.00

Nikka Nicole R. Aninon 250,000.00

Jewel Colleen Cardenas 250,000.00

Total 1,500,000.00

Table 1
Total Project Cost Contribution

General Objectives of the Business

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 We created this product proposal in general partnership in order to offer our

valued consumers with distinct bread products that feature nutritious foods that are

enjoyable for adults and children alike. To do this, we added specialized components

to our fruit-based products such as pineapple, guava, and banana. We'd like to bring a

variety of tastes that people aren't used to tasting in bread. We anticipate that

customers would go toward healthier options rather than breads loaded with sugar and

unhealthy components.

Research Environment

The business location is strategically chosen by the owners ensure the

profitability and filling in the scarcity of bakeshop in the area. Fruit Bread Bakeshop

will soon be open at Purok Pinya, Dicayas Dipolog City located outside Madison

County Subdivision and about 150 meters away from other residential houses along

the Lower Dicayas National Highway where busses, motorists and trailer trucks passed

by going in and out of Dipolog City.

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 Figure 1

Business Location

x
Target Customer

Our customers are all individuals residing in the area, motorists, tourists and

travelers.

Prospect Customer

. In a suburban town like Dipolog City, a tiny bakery may service just local

inhabitants. The bakery may estimate the number of prospective consumers and

organize its operations appropriately using population estimates from the most recent

census and information on the competitive landscape from the local chamber of

commerce. It may also be able to supply other varieties of bread to areas outside its

typical geographic area by establishing an online order input system and contracting

with part-time delivery workers.

The population of the study was obtained using the Raosoft Formula from the

total population of Barangay Minaog and Dicayas in Dipolog City in 2021. It was used

to compute the sample size of respondents who enjoy eating fruit between the ages of

18 and 40.

Capitalization

The expenditure of the proposed business. For the space, one of the partners already

have a privately-owned space which need to renovate amounting 112,690 for

renovation materials. An amount of 4,510 for the plumbing materials; 37, 564 for

electrical materials. Comfort room cost at 29,500. The labor cost allocated is 36,600.

An amount of 70, 230 for the baking tools; 507,000 for baking equipment; for the

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other tools and equipment amounting 10,710; a product material amounting 12,130;

for the office supplies worth of 6,880 and office materials 50,200 comprised of tables,

chairs, office sofa and etc. Other Equipment such as generator, fire extinguisher, 2nd

hand delivery motorcycle and etc. amounting P154,530. Other Equipment and

materials costing 31,750, includes the cash register, speaker or music player and etc.

Utilities an amount of 27,400 will be allocated. As to Marketing Advertisement an

amount of 3,500 will be spend since Facebook advertisement is for free, only banner

and flyers are produced and paid. For Licenses and Permit an amount of 5,000 pesos

will be allocated. A total of 1,106,721 is the needed amount for the proposed business.

As viewed the projected capital for the business is 1,500,000.00, where partners

considered as “Healthy-partnership” with an equal share of 250,000 each. The excess

amount of capital will be deposited to the bank 383,279. A 10,000 petty cash reserve

is maintained for minor or incidental costs such as office supplies or staff

reimbursement. In addition, Ingredients or known as raw materials for bread making

has an allocated amount of 116,874.00, but since the prices of the of raw materials are

dynamic the allocated amount is considered as a variable cost, which makes the

remaining excess capital is 266,405 considered as a total available cash and related

assets of the company which is not included in measures of the working capital.

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MISSION

The proprietor's current mission is to satisfy its customers by providing nutritious

bread in a variety of flavors and achieving high efficiency with the limited resources

available.

VISION

Fruit Bread Bakeshop is a young entrepreneur-led firm that aims to meet consumer

demands by delivering high-quality items at reasonable costs in convenient location, as

well as creative promotions.

OBJECTIVES

 To maximize the customer satisfaction.

 To achieve uniformity in the services provided.

 To determine the marketing techniques that will be used in the company.

 To ensure that all of our business's operational processes are running smoothly

in order to satisfy consumer demand.

Project Summary

To thoroughly comprehend and assess the issue at hand, as well as the client's

preferences, we ran a survey to gather relevant data. The study was performed inside

the boundaries of Barangay Dicayas and Minaog, where we asked one hundred (377)

residents to respond to a series of questions through questionnaire, followed by

Barangay Dicayas (188) and Barangay Minaog (189).

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Market Summary

It goes through spending characteristics and purchasing power of the consumer

who are within the business’ geographic area of operation; it is a research method for

defining the market parameters of a business. So, Fruit Bread Bakeshop offers bread

products that are fruit-based that promotes healthy living community. The proposed

business would like to cater those people who are health conscious, with lifestyle

illnesses such as diabetes, and hypertension, to provide them bread products that are

quality, affordable and can help them avoid inevitable and rampant ailment that the

community is experiencing today since the fruit-based bread products are high in anti–

oxidant vitamins, including Vitamin A, Vitamin C, and Vitamin E. It was viewed that

the target market, resident has a percentage of 95% as a target market, motorist has 3%

and tourists has 2%. There are 377 people we interviewed, 96% said that they wanted

to avail our product and 4% of them are not into our products; 297 responded 5-25pcs

having a rate of 80 %, while 72 responded for 26-45pcs having a rate of 19%, 5

responded on 46 and above pieces having a rate of 1%. The result is more people

choose 5-25 pcs that will help us estimate how much production of bread we will

produce; and 342 respondents answered BREAKFAST having a rate of 90.71% most

of the people who voted prefer to eat their bread on breakfast. While 32 people

responded for LUNCH having a rate of 8.49% and 56 responded DINNER having a

rate of 0.80%. Therefore, the market is feasible because of the high demand based on

the survey that the researchers conducted.

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Technical Summary

Fruit Bread Bakeshop aims to deliver its rapid services maintaining its good

customer service and high-quality bread products. We ensure that our equipment and

raw materials are maintained, clean and durable. We also provide an instagramable

bakeshop themed as eco-friendly minimalist look design to bring great ambiance to our

customers.

Management Summary

Fruit Bread Bakeshop is a general partnership business that intends to serve a healthier

and guilt-free bread from the local fruit in the area. The capital was equally shared by

20% of the partners. The source of the project will be from the personal savings of

each partners. We will administer experienced and cheerful employees to help this

business grow and achieving its goal through employees admirable and great customer

service by giving them delicious freshly baked high-quality bread and high sanitation

standards. Employees and workers go through training or orientation for proper

discipline pertaining to the management policies and rules. Also, we ensure standard

compensation rate with benefits and a 13th month pay to the employees in accordance

with the law.

Financial Summary

This analyzes how financially able is the business and determines if the

business responds profitably. It analyzes financial assumptions to describe the

financial standing and the return of investment through the marketing strategy for

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sales. The source of the project comes from the personal savings of each partners with

a 20% share worth 250,000 pesos.

Recommendation

After considering the main variables in the study, we performed marketing,

financial, technological, and management, as well as socioeconomic studies. It is

therefore recommended that Fruit Bread Bakeshop be pursued, and the business be

established in Purok Pinya, Dicayas Dipolog City, approximately 150 meters from

other residential houses along the Lower Dicayas National Highway, which is used by

buses, motorists, and trailer trucks to enter and exit Dipolog City. Thus, our delivery

services are divided into two categories: bulk order delivery and Food Panda delivery

this is to broaden the scope of our market or the marketability of the “Fruit Bread

Products”.

Conclusion

We conclude that our business is feasible and viable in the market based on our

research and study, as we also display our products in School Canteens of Dicayas

Elementary School (Lower Dicayas, Dipolog City), Upper Dicayas Integrated School

(Upper Dicayas, Dipolog City), Dipolog Institute of Technology (Minaog, Dipolog

City), Hospital Canteens of Zamboanga Del Norte Medical Center (Minaog, Dipolog

City).  As a result, our delivery services are divided into two categories: bulk order

delivery and Food Panda delivery (after 3 months of operation).

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 TABLE OF CONTENTS
PAGE

Title Page i

Approval Sheet ii

Acknowledgement iii

Dedication iv

EXECUTIVE SUMMARY v

Name of Business v

Title of the Study vi

Business Location vi

Nature of the Business vi

Business Logo vii

Description of Logo vii

` Brief Description of the Project viii

General Objectives of the Business viii

xvii
 Research Environment viii

Mapping ix

Target Customer x

Prospect Customer x

Capitalization x

Vision xii

Mission xii

Goal xii

Project Summary xii

Market Summary xiii

Technical Summary xiv

Management Summary xiv

Financial Summary xiv

Conclusion xv

Recommendation xv

Table of Contents xvi

List of Figures xxiii

xviii
List of Tables xxvii

CHAPTER

1 MARKET STUDY

Introduction 1

Market Analysis 1

Computation for the Sample Size 2

Market Survey 3

Target Market 3

Demand Analysis 5

Supply Analysis 9

Market Segmentation 12

Market Share 13

Sales/Income Forecasts 14

Pricing Strategy 17

Advertising Strategy 18

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 Marketing Strategy 21

SWOT Analysis 23

Competitive Advantage 23

Distribution Channel 24

Product Strategy 24

Future Outlook of Trend 25

Marketing Study Findings 25

2 TECHNICAL STUDY

Product Description 26

Plant Location 27

Project Layout 28

Display Store/ Area 30

Office 31

Processing Area 32

Plan for the Unforeseen circumstances/ Contingency Plan 33

Disposal of Waste 33

Project Capitalization Contribution 33

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 Material Sources and Alternatives 34

Size of Business 35

MANUFACTURING/PRODUCTION PROCESS 35

Guava Bread 35

Pineapple Bread 38

Banana Bread 42

Machineries and Equipment 44

Production Schedule 55

Financial Assumptions of Materials and Equipment 58

Technical Study Findings 68

3 MANAGEMENT STUDY

Description and Nature of the Business 69

Mission Statement 70

Vision Statement 70

Objectives 70

Organizational Structure 71

Form of Ownership 71

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 Line and Staff Organization Structure 71

The Line 72

The Staff 72

The Merits 73

The Demerits 74

Organizational Chart 74

JOB DESCRIPTION AND SPECIFICATION 76

RECRUITMENT AND HIRING PROCEDURES 84

The Employees' Requirements 87

Compensation and Benefits Arrangement 87

Salaries/Wages and Benefits 87

Paid Vacation 89

Thirteen – Month Pay (13th Month Pay) 90

SSS – Social Security System 91

Social Security Requirements 91

Benefits and Privileges for Employees 91

Policies Governing General Business 94

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 Style of Management 98

Management Styles 98

LEGAL REQUIREMENTS 99

Management Study Findings 100

4 SOCIO-ECONOMIC CONTRIBUTION 102

5 FINANCIAL STUDY 103

FINANCIAL ASSUMPTIONS OF THE PROJECT 103

TOTAL PROJECT COST 104

PROJECTED FINANCIAL POSITION (Balance Sheet) 107

INCOME STATEMENT 108

OWNER’S EQUITY 109

CASH FLOW 110

NOTES TO FINANCIAL STATEMENT 112

FINANCIAL ANALYSIS AND INTERPRETATION 129

APPENDICES

Depreciation 141

Sample of Mayor’s Business Permit 156

xxiii
 Sample of BIR Requirement 157

Sample of SSS Requirement 158

Sample of PhilHealth Requirement 161

Sample of DTI Requirement 162

Sample of Fire and Safety Inspection Requirement 163

Survey Questionnaire 164

CURRICULUM VITAE 166

xxiv
 List of Figures

Figure No. Page

1 Business Location x

2 Sample size using Raosoft Formula 2

3 Monthly Projected Demand for Fruit Bread

4 Projected Supply for Fruit Bread 9

5 Projected Supply for Fruits 10

6 Projected Supply of Fruits Annually 10

7 Demand and Supply Analysis 11

8 Market Segmentation 12

9 Market Share for Bread Competitors 13

10 Store Sign Board 18

11 Flyers and Banners 19

12 Facebook Promotion/Advertisement 19

13 Food Panda Delivery

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14 Bulk Delivery

15 SWOT Analysis 23

16 Distribution Channel 24

17 Fruit Bread Bakeshop Location 28

18 Perspective View 29

19 Floor Plan 30

20 Display Area 31

21 Office Area 32

22 Production Area

23 Guava Bread 36

24 Pineapple Bread 39

25 Banana Bread 43

26 Baking Equipment 46

27 Baking Tools 47

28 Baking Measuring and Application Tools 48

29 Packaging Materials 49

30 Sanitary and Cleaning Tools 50

31 Cleaning Agents 51

32 Hygiene Tools and Materials 52

33 Office Supplies 53

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34 Other Office Materials 54

35 Other Equipment 55

36 Other Equipment and Materials 56

37 Organizational Chart 75

38 Recruitment and Hiring Process 86

xxvii
 List of Tables

Table No. Page

1 Total Project Cost Contribution viii

2 Total Barangay’s Population 2

3 Target Market 3

4 Demand for Fruit Bread Products

5 Number of Bread Products Respondents Usually Buy 4

6 Particular Time of the Day the Respondents Usually Eat Bread 4

7 Annual Projected Demand for Fruit Bread 7

8 Projected Demand for Fruits (Raw Materials) 8

9 Fruit Bread Monthly Sales 14

10 Fruit Bread Daily Sales 15

11 Annual Sales per Fruit Bread 17

12 Pricing 17

13 Capital Contribution 35

xxviii
14 Material Sources and Alternatives 36

15 Personnel Work Schedule 57

16 Baking Equipment Cost 58

17 Baking Tools Cost 58

18 Other Tools and Equipment Cost 59

19 Product Materials Cost 60

20 Rest Room Materials 60

21 Cleaning Tools and Agents Cost 61

22 Office Supplies Cost 62

23 Office Materials Cost 62

24 Other Equipment 63

25 Other Equipment and Materials 63

26 Renovation/ Structural Cost 64

27 Plumbing Materials 65

28 Electricity Material Cost 66

29 Raw Materials 67

30 Philhealth Insurance Company 88

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31 Social Security System 88

32 Salary and Wages 89

33 The Country's Legal Vacations 90

34 Total Project Expenses 105

xxx