Presented to the

Industrial and Systems Engineering Department

De La Salle University - Manila
Term 1, A.Y. 2021-2022

In partial fulfillment
of the course
INDFEAS (EB1)

Project Feasibility Study: Red Rock Deli PH

Alvarez, Vincent
De Joya, Miguel
Fernandez, Joaquin
Junsay, Kimberly
Zhuang, Kennedy

Submitted to:
Dr. Willy Zalatar

Date of Submission:

January 31, 2022

1. Introduction
 1.1. Product Description
Red Rock Deli was established in 2002 to create a range of gourmet potato chips. As of
today, Red Rock Deli has established itself as one of the most popular snack brands in Australia.
Red Rock Deli offers a variety of products with their one of a kind flavor combinations.
Currently, Red Rock Deli only offers their products in Australia and the United States of
America.

For this feasibility study, the main product will be Red Rock Deli’s potato chips. Their
potato chips are made with potatoes harvested from Australian farms. These potatoes are rough-
cut and slow cooked in sunflower oil. The chips contain no artificial colours or flavours and are
non-GMO project verified. There are a variety of flavors of potato chips: Honey Soy Chicken,
Lime & Black Pepper, Sea Salt & Balsamic Vinegar, Sea Salt, Sweet Chili & Sour Cream, and
Thai Chili & Lime. A bag of chips contains 5.9 servings with a serving size of 28 grams (about
18 chips).

1.2. Industry Assessment

In 2020, the savoury snacks market in the Philippines amounted to around 600 million
USD and is expected to grow to 1.2 billion USD by 2026 (Statista, 2021). The potato chips
industry, in particular, has seen growth in the past 5 years from 88 million USD in 2016 to 90
million USD in 2021(Statista, n.d.). The growing snack and potato chips industry brings with it
opportunities for new market players to enter and establish their brand in the country. Table 1
shows the summary of the SWOT Analysis for Red Rock’s gourmet potato chips company, and
serves as a snapshot of the strong and weak points of the company as well as its opportunities
and threats in entering the market to better judge the feasibility of the project.

Table 1.1 Red Rock SWOT Analysis

Strengths Weaknesses

- Variety of unique flavors - Unknown in the Philippine

- All-Natural ingredients and market; Can mean lack of trust
Non-GMO verified in the brand and a barrier for
people to purchase the product.
- Higher price point discounts a
large portion of the snack
market in the Philippines.

Opportunities Threats

- Well-established market
 - Increase in online shopping players
amidst the pandemic
- More platforms to market
products (FB, IG, TikTok,
social media influencers)
- Spontaneous-snacker nature of
Filipinos

1.2.1. Strengths
It is inevitable that individuals in a market will have varying preferences. This is
especially apparent in the food industry. Having a variety of flavors is a strength because the
product can cater to a larger and more diverse market. Red rock’s flavors also differ from the
flavors that the Philippine market may be used to. This is a strength because these unique flavors,
derived from the widely popular flavors, can grab the attention and curiosity of the market.
Furthermore, Red Rock boasts being non-GMO project verified and using no artificial coloring
and flavoring in the production of their chips. This will be well received by the Philippine market
which is said to prefer natural ingredients and flavors (NielsenIQ, 2021).

1.2.2. Weaknesses
Red Rock’s products are still unknown in the country - an online search revealed that
only 3 other stores readily offer Red Rock’s potato chips. These are all independent Shopee
storefronts, and the most popular among them only has 325 followers. This same seller is also
the sole Red Rock potato chips seller in the Facebook marketplace. Unfamiliarity with the brand
in the Philippine market is a weakness because this means the brand has yet to establish trust
with the market. This is an additional barrier to purchase the product and, for some consumers,
may be a deal breaker. Red Rock’s potato chips are sold at a higher price point than all three of
its competitors. It is also worth noting that the largest percentage of individuals that purchased
snackfood in 2021 (41.5%) were from the low income brackets (Statista, n.d.), meaning a large
percentage of the entire snackfood market may see this product offering as inaccessible given the
target market that Red Rock wishes to reach. If this is considered alongside the fact that many
Filipinos are unfamiliar with the product, this can be deemed a weakness. Potential customers
may not be willing to take the risk of paying a premium because there is no way for them to gain
assurance of the product’s quality and taste from their peers or other reviews from the market.

1.2.3. Opportunities
The increase in online shopping over the years (and especially during the pandemic) is an
opportunity because online shopping removes many barriers to purchasing a product such as
traveling to a store, physically looking for the products, and waiting in line to pay. Many online
shopping platforms allow users to buy items with a single click which helps convert customers
into sales as they have less time to ponder on their purchasing decisions. Furthermore, Filipinos
tend to exhibit characteristics of spontaneous snackers, meaning they can be keen on trying new
snacks and making unplanned snack purchases (NielsenIQ, 2021). While online shopping
platforms are not commonly used for food, and food delivery apps such as foodpanda cater more
to restaurants than single item snacks, online groceries (GoRobinsons, MetroMart, Purego) have
gained traction during the pandemic and could remain even afterwards. Furthermore, as more
people have flocked to the internet in recent times, it has become a very effective marketing tool
that allows brands and products to reach customers with a fraction of the effort spent on
traditional advertising. Applications such as Facebook, Instagram, and TikTok have fostered new
advertising strategies such as the use of social-media influencers and micro-influencers which
make the influencer marketing strategy more accessible to small and medium sized businesses.
With the use of effective online marketing and convenient online shopping platforms, a starting
company or business venture can develop a sales funnel to boost their sales as they aim to
establish their brand in the market.

1.2.4. Threats
The largest threat to the success of this project is that Lays, one of Red Rock’s
competitors, is already well-established and widely accessible in the Philippine Market. The
brand has built a strong customer base with a lot of trust in the brand and its products are
available in a variety of stores and supermarkets, making them easy to find and purchase
regardless of a customer’s location. Lays has shown their domination of the market in other
countries, boasting the largest market share in the USA (29.6%) in 2017 (Statista, 2021a). Their
presence in the Philippine market poses to new brands looking to penetrate the market the
challenge of persuading customers to choose an unknown brand over a well-established one.
 2. Market Feasibility

2.1. Competitor’s Profile

Red Rock Deli has 3 major competitors in the Philippines. These are Lays, Naturals, and
Torres. These 3 snack brands are one of the most known premium potato chips brands in the
Philippines. Starting with Lays, this snack brand was established in 1961 but was soon merged
with PepsiCo, Inc. in 1965. Moreover, their marketing strategy involves making consumers
smile, one that allows the consumer to find enjoyment even in small moments. Analyzing their
4Ps (Product, Price, Place, and Physical Distribution), its details are shown in Table 2.1.

Table 2.1. Lays 4Ps

Product Price

● Introduces different flavors of potato chips ● Price is based on: effortless accessibility,
at regular intervals easy affordability, great taste and high
● Huge range of different flavors of potato quality.
chips (classic, barbeque, chile limon, deli ● Bulk deals, discounts, & price packs
style, sour cream, etc.)
● Offered fat-free variety with low-calorie
version of potato chips
● Uniform spud-shaped potato chips
● 2 Types of packaging (plastic bag & tube)
● Color & design of packaging matches the
flavor (ex: sour cream & onions is green
with image of sour cream & onion chives)

Place Promotion

● Reach consumers via corner shops, ● Assigns brand ambassadors depending on

discount stores, convenience stores,
hypermarkets and supermarkets.
● Manufacturing site in Cabuyao, Laguna
(production of Cheetos, & Lays)
● Distributed all over the Philippines
the country (ex: Philippines - Kathryn
Bernardo) and includes them in
promotional videos and advertisements
● Utilizes the top 4 social media platforms
in the promotion of their products
(Facebook, Instagram, Twitter, &
Youtube)
● Incorporate modern and pop culture into
their advertisements

Naturals is owned by a company called Lorenz, which was established in Germany in the
year 1999. The brand Naturals was later launched in the year 2006, making it a fairly new brand
as compared to other top competitors. They promote healthy, and natural potato chips made from
natural ingredients. Moreover, analyzing their marketing placement, the 4Ps are displayed in
Table 2.2.
 Table 2.2. Lorenz Naturals 4Ps
Product Price

● Epitome of quality and high standards ● Price is based on quality of the product,
● Fried in quality sunflower oil and the natural processes that it undergoes
● Free of genetically modified ingredients in.
● All-natural potato chips ● Bulk deals, discounts, & price packs
● Gluten-free
● Packaging has matte texture, and is
colorful with vivid pictures of the
ingredients of their respective flavors.
● Environmentally-friendly packaging

Place Promotion

● Reach consumers via convenience stores, ● Promoted as premium and all-natural

hypermarkets, supermarkets, & e-
commerce platforms
● Imported from Germany
chips
● Target market is centered around people
who want to eat healthier
● No endorsements, but promotes the
aspects of the potato chips by aesthetic
and lifestyle pictures with rustic vibes.
● Focused on what the product can offer

Lastly, for Torres Potato Chips, this brand is owned by Spanish company TORRES
which was established in 1969. Their product also has a reputation for being premium as the
potato chips are also endorsed to be made naturally, without any preservatives or MSG.
TORRES’ tagline also reflects their all-natural products, “Enjoy the TORRES experience …
enjoy the pleasures of the senses”, as it is not only centered around their product, but the pleasure
that comes with it at the first bite. Their marketing strategy is almost the same as Lorenz
Naturals’ but their social media presence in the Philippines isn’t as strong. Analyzing their
strategy, the results are shown in Table 2.3.
 Table 2.3. Torres Potato Chips 4Ps
Product Price

● Unique flavors (caviar, paprika, ham, ● Price is based on quality of the product,
sparkling wine, black truffle, etc.) and the natural processes that it undergoes
● Packaging is minimalist with more white in.
in the background; the design is not as ● Bulk deals, discounts, & price packs
realistic as Lorenz’s Naturals
● Flavors are endorsed to be natural and not
artificial
● Potatoes are claim to be freshly harvested
by hand-picking and comes from their
loyal farmers

Place Promotion

● Reach consumers via hypermarkets, & e- ● Promoted as premium and all-natural

commerce platforms chips
● Imported from Spain ● Target market is centered around people
who want to eat healthier and ar into
naturally made products
● No celebrity endorsements, but promotes
the aspects of the potato chips by aesthetic
and lifestyle pictures with rustic vibes.
● Focused on what the product can offer

2.2. Target Market

The market segment for the range of gourmet Australian potato chips will comprise the
following customer groups.
Geographic
1. Philippines Nationwide - Geographically, the products will be distributed and sold
to all serviceable areas nationwide as the company will have its main channel of
distribution reside in the well-established local ecommerce channels Lazada and
Shopee in the Philippines, though with the exception of areas with geographical
restrictions
Demographic
2. Middle and high income groups - The potato chips are known for its premium
properties in terms of design and the product. For a serving size of 28 grams, the
average retail price falls around 1,246-1,278 pesos in local ecommerce channels
Shopee and Lazada, which is an undeniably high price as compared to the usual
common potato chips.
3. Children and students - This major customer group typically falls within the age
range of 10 to 29. Research has shown the recurring popularity of potato chips as
 the students’ first choice either for lunch or merienda. It must be noted that this
customer group will mostly belong to affluent families that have high buying
power.
Psychographic
4. Working class - The working class pertains to the members in any employing
organizations with a dedicated work office space and a busy schedule to commit.
A bag of chips would be ideal to fulfill hunger and pleasure without interrupting
their daily work. Workers that reside in established business hubs like BGC and
Makati are identified to lean towards indulging in these products.
5. Tourists - The tourist industry remains a lucrative powerhouse in Australia,
reporting its contribution of 3.1% to the national GDP which is around 60.8
billion dollars to the Australian economy as of 2019 (Budget Direct, 2019).
Importing the Australian flavors in the Philippines indicates establishing a market
niche which satisfies the Filipino tourists who wanted to try out and enjoy these
potato chips. These Filipino tourists are known to be a part of the reported 26%
encompassing the international visitors while the rest are from domestic visitors
in Australia.

2.3. Detailed Demand and Supply Analysis

To analyze the demand of gourmet potato chips, a survey was conducted in several
regions in the Philippines. Their demographics, snack preferences, and their interest in the Red
Rock Deli potato chips were collected. The total number of participants that participated were
about 69 people. Among them, about 46 (66.70%) participants were 35-54 years old, while only
22 (31.90%) were ages 18-24. The minority were 55 years old and up as there was only a single
participant (1.40%) that answered the survey.
 Figure 2.1. Age of the Participants

Additionally, the majority of the participants that answered were female, which were
around 55 people (79.70%), and the remaining were male 14 (20.30%).

Figure 2.2. Sex of the Participants

 For the snack preferences, the majority of the participants consume potato chips,
followed by biscuits and corn chips, and lastly cookies. Some snacks were also answered by the
such as nuts, chocolates, popcorn, dried fruity, and the like.

Figure 2.3. Snack Consumption

Aside from their snack consumption, they were also asked their most preferred snack.
The results were the same as the above, as the leading snack that most of the participants chose
was potato chips (58%), next was corn chips (15.90%), followed by biscuits (8.70%), and
cookies (8.70%).

Figure 2.4. Most Preferred Snacks

 In addition to the questions above, the frequency of snack buying of the participants were
also investigated in the survey. As shown below, 24 of the participants bought their snack once
every other week (34.80%), while about 23 (33.30%) bought theirs once a week. About 16 of
them (23.20%) buy their snacks once a month, and the minority, 5 participants (7.2%) bought
their snacks once a quarter, and only one (1.4%) had the frequency to buy their snacks once to
twice a month.

Figure 2.5. Snack Buying Frequency

Another question was asked in the survey, wherein it pertained to the location or medium
at which the participants bought their snacks. Most of the participants answered that they bought
their snacks from groceries (84.10%). Next is, online shopping platforms such as Lazada,
Shopee, GoRobinsons, and the like (33.3%). This was followed by convenience stores with
around 21.70% of the answers. Social media platforms were also the chosen medium of some of
the participants (10.10%). Though there were participants who answered online groceries, and
BF Market, their answers were already included in the choices.

Figure 2.6. Location and Medium Snack Buying Preference

For the preferred mode of payment, the majority answered that they usually pay through
Cash or Credit Card (both 58%), while about 42% of the answers preferred Mobile Payment via
Gcash, Paymaya, BDO Pay, and the like. Though 17.4% of the answers paid via Debit card, and
fewer wanted Mobile Bank Transfers which was only 8.70%.
 Figure 2.7. Preferred Mode of Payment

To aid this project in determining the roots of the snack preferences of the participants,
they were asked in the survey on how they determine their snack selection when they buy. Most
of the answers were composed of their personality as they enjoyed trying out new things and
experimenting with their snacks. This answer was chosen around 62 times by the participants.
Next, about 29 answered that their friend recommended snacks to buy. About 11 respondents
answered that their snack selection was influenced by social media advertisements. Lastly, a
minority of the respondents chose their snacks based on their usual brands, childhood snacks,
and choosing on the spot in the store displays.

Figure 2.8. Factors Influencing Snack Buying Decision

The brand was introduced in the questionnaire by asking a preliminary question. This was
stated in the survey asking if they are interested in potato chips with a variety of flavors. About
67 of the respondents (97.10%) answered “Yes” while the remaining 2 (2.9%) answered “No”.
 Figure 2.9. Interest in Potato Chips with Variety of Flavors

After the preliminary questions, the participants were asked directly if they have heard of
the brand Red Rock Deli in the past. Numerous respondents, about 57 of them (82.60%), stated
that they haven’t heard of the brand while 12 (17.40%) already had.

Figure 2.10. Red Rock Deli Brand Familiarity

The participants were then asked if they were willing to try the product of which around
66 respondents (95.70%) said “Yes”, and the remaining 3 participants (4.30%) said “No”.
 Figure 2.11. Willingness to Try the Product

Since the majority of the respondents want to try the product, the flavors of the potato
chips offered by Red Rock Deli were also surveyed. Results show that 50 of the respondents
want Sea Salt flavor, and the flavor leading after this is the Honey Soy Chicken which 43
respondents. Slow Roasted Onion & Mustard was the demand of 41 out of 69 of the participants.
Next is the Sea Salt & Balsamic with 35 people choosing it, while after this is the Sweet Chilli &
Sour Cream with 34 respondents. Lime & Black Pepper flavor was chosen by 32 of the
participants, while the flavor that was chosen by least of the participants was the Grilled Chorizo
& Cider Onions, having been chosen by only 26 of the respondents.

Figure 2.12. Flavor Preferences

Lastly, it is important to gather the price perception of the population to determine the
price of the product. Hence the participants were asked how much they are willing to pay for the
Red Rock Deli Potato Chips. Results of this are shown below as around 53 participants (76.80%)
are willing to pay Php 185-200 for a single bag of chips. Next was the price range in between
Php 201-215 that was answered by 11 respondents (15.90%). Three of the participants (4.3%)
were willing to pay around Php 216-230, and lastly 2 respondents (2.90%) viewed the product
price at around Php 231-245.

Figure 2.13. Price Perception

With the results of the survey, it is evident that this type of product has a chance to make
its way into the current market of potato chips in NCR, Philippines. Access to the yearly demand
and supply of potato chips, whether imported or locally made, cannot be accessed on the internet.
However, data about the market value and market volume is available (Canadean Company
Reports, 2017). To know the future prospects of imported and locally made potato chips here in
the Philippines, a forecast analysis should be conducted.

Table 2.4. Market Value of Potato Chips (PHP m) in the Philippines (2015-2020)
Category\Year 2015 2016 2017 2018 2019 2020

Potato Chips 10,049.10 10,390.80 10,711.20 11,037.60 11,377.60 11,733.90

The gathered data for the market value of potato chips was graphed as shown in Figure
2.14. Moreover, the equation of the graph was then computed for the purpose of forecasting
which will be shown later in the following figure. It can be concluded that the market value
increases over the years.
 Figure 2.14. Market Value vs Year

Using the acquired equation of the line, forecasts for the following years were computed.
The data forecasted is shown below, as well as its graph. Since the feasibility study aims to have
a sustainable business for at least 5 years, the forecast spanned from 2022 to 2027. The same
results were obtained as the unforecasted data, wherein there is a positive trend for the market
value of potato chips.
Table 2.5. Market Value Forecast
 Figure 2.15. Market Value Forecast Graph

Next, another data was obtained for the market volume of potato chips. This is shown in
the table below. It spanned from the year 2015-2020 as well which is comparable with the
market value as shown previously.

Table 2.6. Market Volume of Potato Chips (Kg m) in the Philippines (2015-2020)
Category\Year 2015 2016 2017 2018 2019 2020

Potato Chips 18.59 19.10 19.59 20.08 20.59 21.12

This acquired data was then graphed as shown below. In its interpretation, it can be
concluded that market volume also has a positive correlation with time, as it increases as the year
goes by. Moreover, just like in the market value, the equation of the line was also solved for
forecasting purposes.
 Figure 2.16. Market Volume vs Year

The equation of the line was used in order to forecast the market volume in the coming
years. This has the same time span previously, to investigate the market sustainability for potato
chips for 5 years. On the left side is the forecasted data up until the year 2027, while on the right
is the graph of the forecasted data. It shows a positive trend, hence, this implies that the market
of potato chips in the Philippines is still promising in the coming years.
 Table 2.7. Market Volume Forecast

Figure 2.17. Market Volume Forecast

Graph

2.4. Price Determination

The price was mainly driven by consumer-based pricing. The survey was successful in
extracting the customers’ needs as well as their willingness to pay for our product offerings as
shown in Figure 2.13. Although the majority of the respondents preferred to buy them at 185-200
pesos given the quality, the researchers could afford to price it at a premium - 231-245 pesos,
albeit compromising the supply gap that may be met. This price range was further justified, as
the lowest price for Red Rock Deli’s products offered by other sellers is Php 300. Most of these
stores also carry little to no stock, with the exception of the one store which prices its goods Php
1,079; hence, not only is there a unique opportunity in entering the untapped market to assure
availability of products at all times, but the pricing is made affordable in the customers’
perspective. Furthermore, in relation to the other brands Red Rock Deli PH is competing with,
this price positions it as the third most expensive player in the online shopping market, meaning
the price point is feasible. Table 2.8 shows the comparison between Red Rock Deli’s pricing
with that of its competitors. The prices used in the comparisons were the lowest prices offered by
trusted sellers on the online platform, and a price per gram measurement was used due to each
brand having a unique net weight.

Table 2.8. Competitive Analysis of Red Rock Deli Potato Chips in E-commerce Market
 Competitors (Store E- Price Flavors Availability
Names) commerc
e
Platform

CoffeeCaps.ph Lazada 300 pesos Only one flavor Sold out

fhebieannboromeo Shopee 409 pesos Wide range of flavors Sold out

uztc7gdx15 Shopee 990 pesos 4 flavors Stocks are low

vinaputri897519.ph Shopee 1,079 pesos 2 flavors Stocks are high

Table 2.9 Competitive Price Analysis of Potato Chips Brands

Competitors (Store Price (per
Names) gram)

Lorenz Naturals 0.79 pesos

Lays 0.80 pesos

Red Rock Deli 1.48 pesos

Torres Potato Chips 1.86 pesos

The projected prices are then estimated while considering the inflation rates in the
upcoming 5 years. Since no relevant sources were found regarding the inflation rate of snacks or
potato chips in the Philippines, the average price of potato chips (cost per 16 ounces) in United
States City Average was used as reference (U.S. Bureau of Labor Statistics, 2022) to project the
inflation rate. Given an average price of 5.076 for the year 2021 and 4.922 for year 2020, the
inflation rate is computed as follows:
(5.076−4.922)
∗100 %=3.13 %
4.922

Setting the price at 245 in the beginning period, the projected prices in the succeeding
years will assume an inflation rate of 3.13% in Table 2.9.

Table 2.10 Projected Prices of the Product

Year 2022 2023 2024 2025 2026 2027
Projected Price 245 252.67 260.58 268.73 277.14 285.82
 2.5. Distribution System
Being able to sell product offerings in 3rd party marketplaces like Lazada and Shopee
greatly offers convenience on the side of the company in terms of fulfillment, logistics, and also
in payment. The potato chips will be supplied from authentic suppliers of the said product in
Australia. The requested products will then be loaded and unloaded into the company’s central
warehouse, and be stored until retrieval upon the customers’ confirmed checkouts. A team of
labor workers will be in charge of inspecting and packing the products to make sure that they are
far from the expiration date and to implement FIFO when dispatching. As a distributor for food,
it is important to ensure quality products upon the customers’ receival.
A handful of third party logistics providers will be handling the pickup and delivery of
the parcels, which not only allows convenience but also reduces capital investments in terms of
transportation. Supported logistics include Gogo Xpress, Ninja Van, J&T Express, Entrego, and
many more. The operational schedule of the company’s warehouse will be set from 8:00am to
4:00pm, and the 3PL is expected to arrive within this time frame. However, in the event that the
assigned 3PL fails to arrive for the scheduled pickup, the staff may opt to have the parcels
delivered at a nearby drop-off point should there be one.

2.6. Promotion Aspects

Since Red Rock Deli hasn’t been around in the Philippines yet, as it is usually imported
and no existing warehouses are currently situated in the said country. When bringing a new type
of product into an untapped market, its promotional aspect and strategy are integral as it mostly
determines buyability of a product. Moreover, since the start of the pandemic, people have
shifted their buying behavior from going into physical stores to buying in several e-commerce
platforms (Fryer, 2021). Hence, a strong social media presence is required to market Red Rock
Deli potato chips into the Philippine market.
Since the main medium that will be used is e-commerce platforms, a technique that could
be used is Facebook Advertisements. There are around 73,170,000 people that currently have a
Facebook account in the Philippines, and this type of medium is one of the best to advertise
something with its wide number of users (Statista Research Department, 2021). An example of a
Facebook Advertisement integrated with an e-commerce medium such as Shopee is shown
below.
 Figure 2.18. Facebook Advertisement Integration with Shopee

The cost of Facebook advertisement on average is around Php 49.72 ($0.97) per click,
while in terms of impressions (the number of times the advertisement was displayed), costs
around Php 368.56 ($7.19) per 1000 impressions (WebFX, 2021). Additionally, knowing the
optimal time to run and display Facebook advertisements is also integral for a new product that
will be brought into the market. During weekdays, it is better to run and display ads from 1:00
PM to 4:00 PM as it is found to be the peak time for Facebook usage (Klass, 2019). Lastly,
generally, there is uncertainty whether the Facebook advertisements are really getting the results
desired, hence, there is also an optimal number of days to run an ad before some adjustments are
to be made. The best average number of days to run a Facebook advertisement before making the
necessary adjustments towards its content and target market is around 3 to 5 days (Vahl, 2018).
Lastly, the length of the marketing campaign is also integral in the process as it should be
determined when it should end. The average marketing length of fairly new businesses in a
market is around 12 weeks or 3 months (Xi, 2021).
For the appearance of the advertisement, since snacking is being advertised in the said
social media platform, it is important to highlight the natural and organic ingredients utilized by
Red Rock Deli. A sample is shown below for one of the advertisements that will be displayed on
Facebook.
 Red Rock Deli
Looking for a healthy snack? Try out Red Rock
Deli Potato Chips! With its organic ingredients,
and fresh from the farm potato crisps, you’ll be
sure to snack without any guilt!

Red Rock Deli | Red Rock Deli | Red Rock Deli | Red Rock Deli |
Sea Salt Chips Sea Salt Chips Sea Salt Chips Sea Salt Chips

Figure 2.19. Facebook Advertisement Layout Format for Red Rock Deli

With the given information, a rough estimation of marketing costs could now be
computed. Since the brand name of the product is fairly new in the local market, it is vital to
maximize the optimal time and day on when the Facebook advertisements will be displayed.
Also, being aggressive is also recommended in order to ensure penetration within the untapped
market. The marketing costs per year is displayed below with the plan of consistently showing
Facebook advertisements for 3 months, for a more aggressive approach, down to 5 times a week
after the large ad wave for another three months, then thrice a week in the same number of
months, and lastly once a week for the remaining weeks. This cycle will be continued for the
next 5 years, to ensure market penetration, and branding will make a mark on the perception of
the consumers.
 Table 2.11 Total Facebook Advertising Cost (Measured in Clicks)
Year 1

Type of Advertisement Length of Advertisement Cost of Advertisement

3 Months Everyday (Assume Php 49.72× 50 clicks × 90 days

30 days per month) = Php 223,740.00

3 Months, Five Times a Week Php 49.72× 50 clicks × 60 days

(Assume 4 weeks per month) = Php149,160.00
Facebook Advertisements
(Measured in Clicks) 3 Months, Three Times a
Php 49.72× 50 clicks × 36 days
Week (Assume 4 weeks per
= Php 89,496.00
month)

Php 49.72× 50 clicks × 220 days

Once a Week
= Php 547,250.00

400 , ,000 impressions

Facebook Advertisements Php 368.56×
1 Year 1,000 impressions
(Measured in Impressions)
= Php 147,424.00

Total Advertisement & Marketing Cost Php 1,746,766.00

Table 2.12 Total Facebook Advertising Cost (Measured in Impressions)

Year 4 to Year 5

Type of Advertisement Length of Advertisement Cost of Advertisement

Facebook Advertisements 400 , ,000 impressions

Php 368.56×
(Measured in Impressions) 1 Year 1,000 impressions
= Php 147,424.00

400 , ,000 impressions

Php 368.56×
1 Year 1,000 impressions
= Php 147,424.00

400 , ,000 impressions

Php 368.56×
1 Year 1,000 impressions
= Php 147,424.00

400 , ,000 impressions

Php 368.56×
1 Year 1,000 impressions
= Php 147,424.00

Total Advertisement & Marketing Cost Php 589,696.00

 2.7. Evaluation of Marketing Feasibility
Based on the 4Ps for each of the competitor’s of Red Rock Deli, the brand that is most
established in the Philippines is Lays. Next are Lorenz, and Torres Potato Chips. However all of
these potato chips are branded as healthy snacks since they are derived from farm fresh potatoes.
They are well established brands in the Philippine market for imported potato chips. Hence, it
can be concluded that the main marketing problem that Red Rock Deli will encounter is brand
establishment. Since it is a fairly new product, and based on the conducted survey, only about
82.6% have heard of the brand, which is the majority of the market if translating it into the
population that consumes potato chips. Another challenge is the fact that most people buy their
snacks in grocery stores, which would possibly make it difficult to penetrate the online market
for potato chips. However, even with these challenges arising, there are positive prospects for the
potato chips market in the future in the Philippines. Based on the forecast of market value and
market volume, it will continue to rise for the next 5 years or so, making it still possible to enter
the market with a non-well established brand, Red Rock Deli. Only the correct marketing
strategy will be able to do this.
For the price determination, the chosen value was Php 245.00 per pack, since this was
deemed to be the most profitable price for the establishment of the brand here in the Philippines.
As previously stated, the store will be held online to be able ot cater to the citizens of the
Philippines nationwide. This would also ensure their safety towards the pandemic, since they
don’t have to leave the comfort of their home to snack on a pack of Red Rock Deli potato chips.
With this, since everything is online nowadays, the marketing strategy that will be utilized in this
case is through social media marketing specifically Facebook. It was established that the store
will be created through Shopee. Additionally, since majority of the population in the Philippines
are Facebook users, this is one of the best platform to market a brand new product. The
marketing plan will utilize only Facebook advertisements, and post impressions which is linked
in Shopee. It would produce a total of Php 1,746,766.00 for the first year of marketing, since an
aggressive advertising campaign is needed to be able to successfully penetrate the market. The
following year would have less cost as there would be occasional display of Red Rock Deli
products on Facebook. A sample post is shown in Figure 2.19. The attractiveness of of the
product packaging, its health benefits, and knowing that it is made from farm fresh potatoes from
Australia would encourage the Filipinos to snack more healthily by buying Red Rock Deli with a
variety of flavors.
Overall, the marketing strategy is feasible, and is able to appropriately target its intended
market, which are people who love to snack healthily, and loves potato chips. The reason for the
aggressive marketing is to be able to quickly establish the brand into the minds of the Filipinos,
and shift them to more healthy ways of snacking and feeling no guilt everytime they take crisps
from the packets.

3. Technical Feasibility
 3.1. Plant Location
For its warehousing and all other related operations, Red Rock Deli PH will contract the
services of Locad PH, a multi-channel fulfillment partner that utilizes a cloud logistics network
to fulfill e-commerce orders for entrepreneurs and enterprises (Locad PH, n.d.). A third party
warehousing service provider was chosen as opposed to Red Rock Deli PH renting their own
warehouse because a third party service provider takes on a great deal of responsibility in terms
of managing warehousing operations, personnel, and logistics. Locad, in particular, provides
these services and more, including data analytics which will allow the Red Rock management to
focus their efforts on growing the brand instead of spending their time and resources on
managing logistics. Locad currently has 4 warehouses in NCR, the largest of them being their
laguna warehouse showcased in Figures 3.1 to 3.4 below. The warehouse has a total space of
11,743 square meters and includes dedicated docking and staging, quality check, packing, and
storage areas.

Figure 3.1 Locad Laguna Warehouse Figure 3.2 Docking and Staging Area

Figure 3.3 Packing Area Figure 3.4 Storage Area

Source: Locad PH

3.1.1. Additional Services

 Figure 3.5 illustrates the Locad ecosystem and the exact services it offers its clients. As
mentioned in Section 3.1, Locad takes on the entire order fulfillment responsibility for its clients.
Integrating a storefront into the Locad cloud is very simple and described as “plug and play” by
their customer service. Red Rock Deli PH can have their orders delivered directly from the
supplier to the Locad warehouse, where the staff will conduct a thorough quality check,
inventory count, and store the products. Locad also promises close to 99% order accuracy and
assures that no SKU mixing will take place. Each product is scanned using barcodes and the
SKUs automatically reflect in the client’s dashboard on the Locad platform (Figure 3.6). Once a
client’s storefront is integrated with the cloud, any orders they receive on their stores - Lazada
and Shopee in the case of Red Rock Deli PH - will also be visible on the Locad ecosystem. This
will trigger the Locad team to complete the entire order fulfillment process (to be discussed in
Section 3.2.4). Locad is committed to fulfilling 90% of orders within 24 hours (to be picked up
in the next 24 hours), and in 2021 achieved a 98% next day pickup rate. Clients will also have
real-time visibility on their orders and fulfillment so they can also keep their customers updated
at all times. Any inventory updates that will be made on the Locad ecosystem after an order is
fulfilled will sync and reflect on all of a client’s storefronts to avoid confusion with inventory
counts. Locad also offers tracking and data analytics for sales, orders, and inventory so clients
may be informed about their top performing SKUs, top performing selling platforms, and
updated stock counts.

Figure 3.5 Locad PH Ecosystem

Figure 3.6 Locad PH Inventory Dashboard

 3.1.2. Pricing
The pricing of Locad’s services depends on the product’s item size (which is defined by
the company as the sum of the shortest side and the longest side, and also has a corresponding
weight) and the number of products that need to be fulfilled. Red Rock Deli PH’s products have
all the same dimensions and weight (Figure 3.7), this will all fall under the Standard item size
category (Longest + Shortest Side <= 55 cm and weight <=5 kg).
 Figure 3.7 Dimensions of a bag of Red Rock Deli Gourmet Potato Chips (165 g)

A Professional Plan, which will allow a client to avail of all of Locad’s services costs Php
25,000 per month and includes Php 20,000 worth of consumables for fulfillment, storage, and
other value-adding services. Table 3.1 showcases the price breakdown for all the services offered
by Locad in the Standard item size category.

Table 3.1 Price Breakdown of Locad PH Service Offerings

Professional Plan Php 25,000 Monthly Subscription Fee with Php 20,000 Consumable
Fulfillment Credit

Service Unit Size Fee in PHP (Vat-ex)

Fulfillment Per item Standard ₱24

Storage Per Item Standard ₱9

Returns Per Item Standard ₱35

Bulk Pullout Per Item Standard ₱25

Manual Inventory Per SKU - ₱100

Piece Count (Upon
Request)

Custom Per Order - ₱5

Packaging/Handling

Flyers/Promotional Per Order - ₱5

Inserts/Personalized
Letters

Additional Bubble Per Order - ₱5

Wrap
 Bundling Per Bundle - ₱7

Barcoding Per Barcode Printed - ₱2

Warehouse Insurance Per Item - 0.55% of the declared

value

These services each have their own caveats which can be found in the remarks section in
Appendix A.

3.2. Operations Processes

3.2.1. System
Figure 3.1 shows the operations process from procuring Red Rock’s products from the
supplier to the delivery of the customer orders. To give a general overview of the process - Red
Rock Deli PH first obtains its stocks from the supplier: Pataza Pty Ltd. The stocks are sent
directly to Locad PH’s warehouse and all warehousing will be done on their end. Red Rock Deli
PH’s products will be listed on Shopee and Lazada, available for buyers to place their orders.
Once a buyer places an order, the Locad warehouse will be notified, through the online platform,
of the order details, and will then proceed to pack and prepare the order for shipping. The order
is then picked up by one of the supported third-party logistics partners of the platform (Lazada or
Shopee) and is delivered to the customer.

Figure 3.1. Operation Process Model

 3.2.2. Stocking and Replenishing of Products
Red Rock’s products will be supplied by Pataza - Australia’s leading food exporter. The
company boasts having long established supply agreements with Australian manufacturers,
allowing them to obtain the best prices for their clients (Pataza, 2021). All transactions with the
supplier will be completed through their storefront on Alibaba. The company requires a
minimum order quantity of 19800 pieces and can supply these at $2.29/bag. The lead time for
the shipment is 15-25 business days via Australian Post.

3.2.3. Storage Process

All products will be shipped directly to Locad PH’s warehouse. Locad will also be in
charge of receiving, quality checking, and storing. Once a product is checked, its barcode is
scanned and the SKU is automatically updated in the Locad Dashboard for easy visibility of the
client. The client also has visibility on those items that have enough stock, low in stock, out of
stock, and the number of days before an item runs out of stock based on a 14-day sales trend.

3.2.4. Transportation Process

The delivery of goods from the warehouse to the consumer will be facilitated by Lazada
or Shopee (Depending on where a customer places their order) via their logistics services. Both
of these online marketplaces have internal service providers and have partnered with third party
logistics providers to offer services such as parcel pickup, drop off, and order tracking; Their
respective order fulfillment processes, taken from their help centers, will be discussed below.

Lazada

When a buyer places an order in a shop’s seller center, the shop will immediately be
notified via email or the seller center app. At this point, the shop has 24 hours to process the
order, pack the item, and hand it over to the Lazada courier. The exact steps to complete the
handover process are shown in Figure 3.2. Orders that do not make this cutoff are cancelled, and
continuous violations of this requirement will lead to the deactivation of the shop.

Figure 3.2 Lazada Order Fulfillment Process Steps

 Once an order is received, it shows up on a store’s seller center as a Pending Order.
Seller’s can access their list of pending orders and print them out for an easier picking process.
Once they have picked all the items for their pending orders, they must prepare a sales invoice
(per order) to include in the package as required by local laws. After preparing the sales invoice,
seller’s can pack each order. Lazada has a set of packaging guidelines that constitute the type of
packaging to use for different items, the proper attachment of shipping labels, etc. Packages that
do not follow Lazada’s guidelines can be rejected at the point of pickup or drop off, and
packages that are picked up but later on found to be non-compliant, will not be eligible for
claims on damaged items or packaging. Once an item is properly packed - with all the proper and
matching documentation - a seller can set the order status to “Ready to Ship”. At this point, the
handover process begins, as shown in Figure 3.3.

Figure 3.3 Lazada Handoff Process Steps

The pre-handover step comprises the steps discussed above, from receiving the order to
properly packing it, that must be completed in 24 hours. Once a seller sets the order status to
“Ready to Ship”, the assigned third-party logistics partner will be alerted that the seller’s items
are ready for pickup. Once the driver arrives at the pickup location, the courier will scan the
airway bills and the scanned quantity on the device will be updated. After the scanning process,
the seller must validate the order quantity details and signoff to confirm that the information is
accurate and final. In the post-handover step, the seller receives an email notification that the
pickup was completed.

Shopee

Shopee’s order fulfillment process steps are very similar to Lazada’s, thus only the main
difference between the two platforms - the handover process - will be discussed. Unlike Lazada,
Shopee does not require sellers to complete the handover process within 24 hours. In fact, once
 sellers have properly packed their orders and fixed the order documents, they have the option of
scheduling the order pickup. The pickup service availability may differ depending on the service
provider, but the process is mostly the same.

Shipping fees for Lazada are calculated based on the origin and destination of delivery
and whichever is higher between the package’s weight or dimensions (obtained by [(L x W x
H)/6000]. Figure 3.4 shows the respective rates for these different cost components. LEL
Express (Lazada’s Internal Logistics Provider) can accommodate packages greater than 200kg
and can deliver nationwide. Shipping fees on Shopee are calculated based on all three
components - origin and destination, package weight, and package dimensions. Shopee’s in-
house and third party logistics providers can accommodate varying maximum package
dimensions and weight, and they also provide services for bulky items with no weight and
dimension limits but only for pick-up within Metro Manila.

3.3. Capacity Requirements

3.3.1. Target Share in Market Volume

Based on the market volume forecast and the results from the survey in section 2.3, the
demand for Red Rock Deli’s gourmet potato chips can be estimated for the next five years.
Based on the survey results, 33.3% of respondents use online platforms to buy snacks. Of those
33.3%, 2.9% stated that they would be willing to pay Php 231 to Php 245 for the product.
Multiplying these percentages by the projected market volumes for 2022 to 2027, Red Rock
Deli’s potential market volume can be determined, as shown in Table 3.3 below. Dividing these
values by the projected total market volume, the target share in market volume of Red Rock Deli
PH is 0.97%.

Table 3.3 Estimated Market Volume of Red Rock Deli (Kg m) in the Philippines (2022 - 2027)
Category/Year 2022 2023 2024 2025 2026 2027
Potato Chips 0.21 0.22 0.22 0.23 0.23 0.24

To translate these values into demand they will be multiplied by 1000 to convert to grams
then multiplied by 1,000,000 to get the actual values. The product will then be divided by 165 -
which is the net weight (in grams) of a single bag of gourmet potato chips - to derive the demand
in number of bags for a year. Thus, the yearly demand for Red Rock Deli PH’s products are
shown in table 3.4 below.

Table 3.4 Yearly Demand (165 g Bags) of Red Rock Deli Gourmet Potato Chips (2022 - 2027)
Category/Year 2022 2023 2024 2025 2026 2027
Potato Chips 1,291,463 1,320,903 1,350,342 1,379,781 1,409,220 1,438,659
 Red Rock Deli PH will choose to satisfy 5% of its potential demand, amounting to
64,574 bags in 2022 which will grow to 71,933 bags in 2027.

3.4. Legal Requirements and Certifications

Prior to the importation, distribution, and sale of a food product in the market, the product
must be registered with the Philippine Food and Drug Administration (FDA). The importer must
also have a License to Operate (LTO) and a Certificate of Product Registration (CPR). The LTO
is initially valid for 2 years, but after renewal is valid for 5 years. The CPR can be valid for 2,3,4
or 5 years depending which option the applicant chooses (Food and Drug Administration, 2021).
As for the requirements of Locad PH, only a DTI Registration is required and the client’s
storefront credentials.

3.5. Evaluation of Technical Feasibility

The sections discussed in the technical feasibility have clearly shown that the planned
operation of Red Rock Deli PH is technically feasible. By entrusting the bulk of the warehousing
and logistics operations to a third party service provider, Management can focus more on
growing the brand, which is vital for a new player entering the market. Red Rock Deli PH can
also learn some best practices from their service providers, and once the brand and its market is
more established, management can then look to become more independent in its technical
operations.

4. Management Feasibility

4.1. Ownership
Red Rock Deli PH will register as a single proprietorship. A single proprietorship is a
business owned and managed by a single person. This type of business is very common as it is
easy and inexpensive to start. With a sole proprietorship, the owner has complete control over
the business. The owner would make all decisions regarding the business. This is ideal for the
company as the company’s process of acquiring the product and distributing through 3rd party
marketplaces is very simple. Furthermore, this benefits the company as the business income is
not taxed separately.

4.2. Organization Structure

Figure 4.1 Organizational Structure

 The figure above displays the organizational structure of Red Rock Deli PH. The
manager is in charge of overseeing the three departments: Operations, Marketing, and Finance
and Accounting. Under the operations department are the laborers and supervisor. The roles and
requirements of these entities will be discussed further in the next section.

4.3. Personnel Requirements

Manager

The manager is tasked with overseeing the operations, marketing, and finance and
accounting departments. They are responsible for ensuring that all these departments are
functioning well and that the business operation flows smoothly. They must set the goals for
each department and steps in order to achieve the goals. In addition, the manager is also in
charge of assessing the performance of departments, terminating employees, and hiring new
employees for department vacancies.

A manager would need to have great leadership and communication. A manager must be
capable of leading and motivating employees to meet each goal and overcome any challenges.
Additionally, a manager must be knowledgeable and have experience in working in a
professional setting.

Operations

As mentioned in section 3.1, Red Rock Deli PH will contract the services of a third-party
warehouse; These services include the basic warehouse operations from receiving to order
fulfillment. The operations department is in charge of coordinating with Locad’s warehousing
team to ensure that the processes are completed from start to finish. They will have access to
Locad’s dashboard and will be able to monitor the performance of the company in terms of sales
and the status of the company’s inventory. They will be in charge of replenishing stocks and will
work closely with the finance and marketing departments as they will be constantly updated on
the data regarding the company’s performance.
 Marketing

The marketing department is in charge of increasing revenue and market share and
contributing to company profitability and growth. They are responsible for promoting the
products of the Red Rock Deli PH, finding new customers, and retaining existing customers. An
employee under this department must have a good understanding of market concepts such as
target market, segmentation, positioning and the 4 Ps of marketing: product, placement, price
and promotion.

Finance and Accounting

This department is responsible for providing accounting services and managing the
finances of the Red Rock Deli PH. This responsibility includes recording accounts and paying
bills. Employees under this department must be organized and must have sufficient knowledge
on the subject.

4.4. Evaluation of Management Feasibility

Red Rock Deli PH will be registered as a single proprietorship business with four main
entities: Manager, Operations, Marketing, and Finance and Marketing. The sections above have
discussed the personnel requirements of each entity and are deemed to be feasible.
 5. Financial Feasibility

5.1. Capital Requirements

Marketing and Technical Expenses

The marketing expense entails the cost that will be spent on bringing the product into the
Philippine market. Hence, this was already computed previously in Table 2.11 wherein, the total
cost of marketing for the first year would be around Php 1,746, 766.00. Additionally, for the cost
of goods that will be sold, it was projected that the expense for ths would reach around Php
7,232,192.80. Other expenses are also depicted in the table below.

Table 5.1. Expenses for Capital Estimation

Expenses Cost of Expenses

Cost of Goods Sold Php 7,232,192.80

Business Permit Php 5,000.00
Rent Services Php 300,000.00
Packaging Php 15,820.42
Marketing Expenses Php 1,746,766.00
Import Expenses Php 867,863.14
Total Capital Needed Php 10,167,642.36

5.2. Sources of Capital with Funds Drawdown Schedule

The sources of capital will come from the owners of the business. Hence, there will be no
loaning that will happen. Moreover, the business is also sole proprietorship, thus the capital may
be from the pockets of the owners themselves. This would be the initial plan to avoid interest
expense when loaning from banks.

5.3. Financial Projections

5.3.1. Balance sheet
This section will discuss the balance sheet for the business. As shown in the figure below,
the breakdown for each of the assets and liabilities of the business is shown.
 Figure 5.1. Red Rock Deli PH Balance Sheet

The balance sheet statement is able to capture the assets and liabilities of the business for
the next 5 years, and determine how much resources will be needed for the business to be
profitable and sustainable.
5.3.2. Assumptions

The following assumptions are considered in generating the projected financial

statements of the venture company.

Table 5.2. Projected Income Statement Assumptions

Total Revenue Assume to satisfy 5% of Projected Demand
Cost of Goods Sold Annual 2% increase
Transaction Fees (VAT Inclusive) 2.24% of Total Revenue
Packaging 0.1% of total revenue
Marketing Expenses Annual 10% increase
Rent Expenses Annual 5% increase
Business Permit Constant for 5 years
Import Tax Expense 12% of COGS
Corporate Tax Rate 30%

5.3.3. Income statement

 The projected income statement is generated in consideration of the constraints and
assumptions in Figure 5.1. The company is projected to earn income in the first year of
operation.
Figure 5.2. Projected Income Statement

Based on the figure above, it can be said that the prospects for Red Rock Deli PH are
positive, as it is able to increase its net income yearly together with the assumptions and
expenses incurred for business operations.

5.4. Cash flow statement

The cash flow statement is shown in Figure 5.3, wherein the first investment of 10.2
million was incurred in the first year for enabling business operations.
Figure 5.3. Cash Flow Statement

5.5. Financial Analysis and Evaluation

A payback period of 2.69 was computed in Figure 5.1, which is considered realistic and
practical for a retail company. It may be apparent that 2.69 years may take a long time, the gross
profit and the net income is seen to progressively increase throughout the years.
 6. Socio-Economic Feasibility
6.1. Social Costs and Benefits
6.1.1. Social Costs/Responsibility

6.1.1.1. Customers
The company is responsible for providing the customer with the right product in a
satisfactory condition as if it was purchased in the country of origin. Additionally, customers are
assured that the product is safe to consume and easy to place an order.

6.1.1.2. Employees
Aside from the employee wage, the organization will provide training in areas such as
management, accounting, and marketing. Furthermore, the ability to operate as part of a team
will boost connections with colleagues and employers, as well as external contacts with
customers and other industry peers. Finally, the corporation will provide them with incentives
and bonuses.

6.1.1.3. Environmental concerns

The price of the product's carbon emissions during importation, as well as local transit
inside the Philippines via various delivery providers, will pile up. Another issue is the product's
plastic trash, which might pollute the environment if improperly disposed of.

6.1.2. Benefits

6.1.2.1. Customers
The firm would be able to give clients with a specialty product that is also inexpensive.
Customers who are familiar with the product but do not have access to it in the Philippines are
also affected.
6.1.2.2. Related Industry
The firm may assist adjacent sectors by pushing them to import more distinctive snack
items into the Philippines, resulting in healthier competition in its particular market.

6.2. Economic Analysis

6.2.1. Employment
Employees in the managerial departments such as Management, Marketing, and
Financing are paid compensation commensurate with their positions in a small-medium business.

6.2.2. Benefits and Compensation

The corporation will pay for the employees' SSS, as well as taxes from corporate
revenues, allowing the government to have a greater budget for public works.
 6.2.3. Use of Local Products
Local delivery services are used by the firm, which in turn employs local workers. This is
beneficial not just to the enterprise because of its low costs, but also to the economy since it
reinforces the country's economic foundation.

6.2.4. GDP
As the company grows larger and larger, it may be able to employ and expand further. In
turn, increasing the availability of local job opportunities, leading to more productive citizens.

6.3. Evaluation of Socio-Economic Feasibility

Red Rock Deli PH is able to provide customers with a niche and accessible product.
Along with this, it may increase the available job opportunities within the Philippine jobs market
with further potential for expansion. However, there is an environmental cost of importing the
product itself, transporting it towards the company warehouse, operations, and delivery in the
form of energy consumption and carbon emissions without any offset.

7. Conclusion & Recommendation

This study assessed and evaluated the marketing, technical, management, and socio-
economic feasibility of Red Rock Deli PH. It was determined that all these entities would be
feasible for operations in the country, yielding a significant amount of profits that would increase
throughout the years. It was determined that the main problem the company would encounter
belongs to the marketing aspect as the brand is not fully established compared to it’s competitors.
However, based on the market value and volume forecasts, it was determined that it is feasible to
enter the market with a non-established brand as the market value and volume will continue to
rise yearly.
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9. Appendix

Appendix A. Complete Price Breakdown of Locad PH Service Offerings

‌