Feasibility Study

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INTRODUCTION

The City of Dumaguete is the capital, the seat of government and the economic hub of

the Philippine province of Negros Oriental. Located on the plains of the southeastern coast of

Negros Island, the city has a relatively small land area with a total of only 34.26 km 2 divided into

thirty (30) barangays. It is one of the most populated areas in the province as it is popularly

known as a City of Gentle People and a University town. As a coastal city, serving as a natural

border to the neighboring provinces of Cebu, Bohol and Siquijor, the city continues to attract a

considerable number of people particularly students, local and foreign tourists, and businessmen.

Access and transportation of goods and services from nearby provinces is also made convenient

through the city’s own airport and several piers.

With students, tourists and other people from neighboring provinces flooding the city,

entrepreneurs have put up businesses to cater to the public’s needs and wants. Thus, work

opportunities and employment have also accelerated due to the existence of these business

establishments.

Noodles are now considered as one of the main staple food here in the Philippines since it

has been found out that noodle consumption among Filipinos is continuously increasing. With

the continuing escalation of population growth and increasingly busy lifestyles of Filipinos,

consumer demand and appreciation of noodles has risen for its convenience. However, there is a

growing concern on the impact of noodle consumption to people’s health and nutrition.

Addressing this concern on the nutritional deficiency here in the Philippines, RA No 8976, also

known as the “Philippine Food Fortification Act of 2000,” was ratified. The program consists of

voluntary and mandatory food fortification to all imported or locally processed foods or food

products for sale or distribution in the Philippines. In line with this, a local resident from Brgy.
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Buñao, Dumaguete City thought of establishing malunggay noodles business. With the health

benefits offered by malunggay coupled with its wide cultivation here in the Philippines,

malunggay noodles can address people’s busy lifestyles in a healthier way.

Here in Dumaguete City, there is still no production center of malunggay noodles. And

since Dumagueteños are changing to busier yet healthier lifestyles, malunggay noodles

consumption would positively grow. Considering the prospect for a new business to

accommodate to the changing lifestyles of the people, the proponent started the idea of

establishing Nutri-M malunggay noodles production center and venture in this kind of business

here in Dumaguete.

II. OBJECTIVES OF THE STUDY

The researchers aim:

1. To determine the feasibility of establishing a home-based production business of room

and linen spray, soaps, and aromatherapy diffusers.

2. To determine who are willing to patronize the product.

3. To determine the market’s bases in buying the products.

4. To set up demand.

5. To determine the direct and indirect competitors of the product and asses the level of

competition as well as designing an effective marketing strategy to improve product’s

viability.

6. To establish an organization and an effective management of the business.


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7. To determine the technical aspect, management aspect, marketing aspect, legal aspect,

socio-economic aspect, financial aspect, and environmental aspect of the proposed

project.

II. SCOPE OF THE STUDY

The analysis and projections of this study cover only the following scope:

a. The respondents of the study are the residents and owner of Quezon City, Oroquieta City

and Dumaguete City.

b. Only a percentage of the population of the total number of residents in the said places

will be considered as the respondents, which will serve as the basis of the analysis and

interpretation of data.

c. The survey questionnaires serve as the primary source of data of this feasibility study.

III. SIGNIFICANCE OF THE STUDY

This paper seeks to measure the feasibility of establishing a home-based production

business of room and linen spray, soaps and aromatherapy diffusers. Results from the

analysis of gathered data will benefit and be of great interest to the people of the city,

proponent and further researchers.

Potential Consumers and clients. This study will promote public awareness of the health

benefits provided by essential oil blends, giving them a healthier way to enjoy and cope up

with their busy lifestyle.


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Proponent. This study is primarily of great interest to the proponent, to know if the project is

indeed feasible and to make the best decisions regarding the investment. By carefully

analyzing data gathered in the study, and eliminating doubts, the proponent can asses and

make the best decisions. Moreover, this study will help the proponent realize an assessment

of the capital and operating expenses, payback period, and return of investment of the

project. This study will also assist the proponent in making the best strategy to enter the

market, promote market demand and respond to competitions that it might encounter if they

are to pursue this business.

Institutions. Institutions such as the different government agencies like the DOH and DOST

as well as public elementary and high schools shall be aided with the product on its

movement against malnutrition. With it high nutrient content, schools may serve malunggay

noodles during its feeding programs and different health campaigns.

Future researchers. This study can be of valuable help and interest to future researchers

whose research and feasibility studies are related to this study.

IV. METHODOLOGY

a. Description of the Sources of Data

The primary data used for the study was taken from the results tallied from the

survey done by the researchers. The researchers chose random sampling as its sampling

technique. Two types of survey questionnaires were made, one for the consumers and one

for the store owners or purchasers. In total, 402 questionnaires were distributed to and
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retrieved from random people in areas like schools, the downtown area and random

offices. 107 questionnaires were also distributed to and retrieved from store owners and

purchasers in the different barangays and areas of the city. The responses were tallied and

recorded one by one.

b. Research Environment

The research environment for this feasibility study covers the whole of

Dumaguete City, the capital city of the province of Negros Oriental. The city is located in

Central Visayas with a total population of 121,423 people according to the 2010 census.

Having a total land area of 34.26 square kilometers divided into 30 barangays, the city

has been recognized as a “City of Gentle People” and a “University Town” with 7

universities and colleges, 9 high schools and 12 elementary schools. Dumaguete City is a

suitable place to establish a new business for there is a great number of potential

customers. The study then was conducted in the downtown, schools and stores in

different areas and barangays of Dumaguete City.

c. Respondents of the Study

The respondents of the study, as identified by the researchers, were divided into

two groups. The first group consists of the residents and the general public of the City of

Dumaguete who were considered eligible samples or participants regardless of gender,

age, civil status, and occupation. The other group is composed of the owners or

purchasing officer of the different groceries, convenience, and other merchandising stores
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in Dumaguete. As a vital ethical concern in conducting research, consent from each of the

identified respondents was solicited. With random sampling, the researchers have

classified the target market into students, working professionals, and senior citizens.

d. Sampling Technique

The researchers used convenience sampling method in gathering the data needed

in this feasibility study and necessary for the research objectives. The total number of

sample size was determined through the Slovin’s Formula shown below:

Sample size equation:

N
n = 2
1+ N e

Where:

n = sample size

N = the size of the finite population

e = margin of error

Sample size for consumer respondents:

Data for Dumaguete City (National Statistics Office as of 2010):

N = 121, 423 (please see Appendix )

e = 5%
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121,423
n = 2
1+[ ( 121,423 ) (5 %) ]

n = 398.6866191 ≈ 400

Sample size for store owner/ purchase personnel respondents:

N = 142 (please see Appendix )

e = 5%

142
n =
1+[ ( 142 ) (5 %)2 ]

n =104.7970480 ≈ 105

e. Research Instruments

The primary research instrument prepared and utilized by the researchers for this

feasibility study was the survey type of questionnaire. Two survey questionnaires were

designed, one for the consumers and the other for the store owners or the purchasing

personnel. The questions formulated were those the researchers think were useful in

accomplishing the objectives of the study.

f. Data Gathering Procedure

In data gathering, the researchers took into consideration several aspects of the

survey questionnaires. Before the researchers mass produced and distributed the

questionnaires, they had undergone preliminary testing and further editing of their

questionnaires based on the recommendations of experts in the field of research studies.


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After several revisions, the questionnaires were ready for mass production and

distribution followed.

Primary data were gathered through the random distribution of the questionnaires

to the computed sample size of Dumaguete City. The computed sample size was from the

total population of Dumaguete City for the year 2010. The questionnaires were

distributed all around the city to random people and store owners or purchasing

personnel. In totality, 402 questionnaires for the consumers and 107 were tallied and

interpreted. Since the convenience sampling was the technique adopted by the group, the

members went to the different barangays and conducted the survey to make sure that the

population will be well-represented by the sample.

g. Statistical Treatment Applied

The researchers used tables, pie charts and bar graphs to present quantitative

results in an orderly and comprehensive manner. The charts, graphs and figures represent

the data that have been tallied from the questionnaires which were answers of the

respondents. The questionnaires were tallied with all honesty to ensure reliability and

validity of data.

h. Limitations of the Study

Several factors were considered during the study that may limit the interpretation

of the data. These factors include time constraint, availability of respondents and

resources and financial constraints. The group was only given about three months to

complete the study.


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V. PROJECT SUMMARY

A. HISTORICAL BACKGROUND OF THE PROJECT

The proponent, Ms. Josephine Noble, is a resident of Barangay Buñao,

Dumaguete City. She had always been planning to open up a business of her own. She

used to work in Singapore where she learned how to make noodles, pasta and other

foodstuff. When she decided to return and stay here in the Philippines for good she

continued her passion in culinary. Her creativity and resourcefulness allowed her to

make use of the abundance of malunggay in making noodles. She can also make

noodles and pasta out of carrots, squash and other vegetables. She first introduced her

malunggay noodles to neighbours and friends who eventually liked it and made orders

from her. Her perseverance and the uniqueness of her product attracted the Brgy.

Captain of Buñao, Hon. Banogon, who is now helping her find ways and means to

pursue her small-scale business. Ms. Noble plans to put up a small production center

of malunggay noodles to start up her business, and to provide the people of

Dumaguete a healthier way of eating noodles.

B. NAME OF THE ENTERPRISE

The name of the proposed business venture is “Nutri-M”, where M stands for

malunggay or moringga, “malusog”, “masustansya”, “masarap” and other adjectives,

starting with letter “M,” that best describes her product.

C. PROJECT PROPONENT
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Nutri-M Moringa Noodle Production Business is a sole proprietorship form of

business owned by Ms. Josephine Noble. She is a 52-year old Filipina residing in

Brgy. Buñao, Dumaguete City. She used to work as an usherette in the Singapore

Museum. Considering the potential of converting her hobby in making noodles as a

business venture, the barangay captain of Buñao, Hon. Leonel Banogon, sought ways

and support from different government agencies like the Department of Science and

Technology (DOST) to pursue her business.

D. LOCATION OF THE BUSINESS

The proposed one-storey production center of Nutri-M malunggay noodles will

be situated in Purok Santa Luisa, Bry. Buñao, Dumaguete City. It will be favorable

location for business because it is just beside Ms. Noble’s residence and the barangay

has also abundant supply of malunggay. The total area of the proposed production

center is 44.8 square meters only and is capable for expansion.

E. BRIEF DESCRIPTION OF THE PROJECT

A noodle production center is an establishment where noodles are made,

packed and made ready for distribution. Nutri-M malunggay noodles product caters to

the general public especially for those who are seeking a healthier way of addressing

today’s busy lifestyles of people.

The establishment will only have one floor, divided into different working

areas namely the noodle-making area, packaging area, and storage area. Nutri-M

moringa noodles come in two packs the small pack, which weighs 60 grams, suitable

for personal consumption; and the large pack, which weighs 150 grams, consumable
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by two or three persons. In terms of the prices, it will be based on the purchasing

capability of the Dumagueteños and the total cost of the production of malunggay

noodles.

F. OBJECTIVES OF THE PROJECT

A. SHORT-RANGE

The project’s short-range objectives are the following:

a. To size up demand.

b. To determine what is the acceptable, reasonable price range.

c. To increase the people’s awareness of the product and its variations.

d. To determine the possible strength and weaknesses, opportunity and

the threats of proposed business.

e. To determine the direct and indirect competitors of the product.

f. To determine the suitable location of the business.

B. LONG-RANGE

Nutri-M envisions itself as the main producer and distributor of malunggay

noodles in Negros Oriental. The project’s other long-range objectives are

following:

a. To measure the business profitability.

b. To prepare the proponent for possible risks and losses.


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G. HIGHLIGHTS OF THE PROJECT

a. CONCEPTION OF THE BUSINESS

According to the proponent, the idea of establishing a malunggay noodles

production center here in Dumaguete is for her to follow her passion in culinary,

for her to have a source of income, and to somehow help her fellow residents by

employing some of them. She also took advantage of the fact that people are

looking for healthier way to cope up their busy lifestyles. And that the national

government has ratified RA No 8976, also known as the “Philippine Food

Fortification Act of 2000,” which is a program consisting of voluntary and

mandatory food fortification to all imported or locally processed foods or food

products for sale or distribution in the Philippines. Hence, this would be a very

good business to invest in.

b. NATURE OF THE BUSINESS INDUSTRY

The noodles industry is made up of the businesses that produce noodles as

well as those who bring it to market. Noodles are considered as one of the main

staple food here in the Philippines and in the world. They often vary in quality,

and some noodle companies continue to conduct research and development to

ensure consistency and flavor over time. Many noodle companies also provide

their noodles with seasonings, spices and other flavorings in order to create

noodle products with mass appeal thus providing their customers with different

noodle choices.
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c. MODE OF FINANCING

The proponent will shoulder all the expenses needed to finance her

business except for the machineries and equipment. The Department of Science

and Technology will provide the necessary machines and equipment to be used in

the noodle-making process. The total cost of these machines and equipment is

which will be payable in three (3) years through instalment and with 0% interest

rate.

d. COST OF INVESTMENT

According to the financial statements, the project needs an initial capital of

Php 641, 236 hich includes the generator, operating expenses, working capital and

contingencies. The total cost of the machineries and equipment to be provided by

the Department of Science and Technology is Php 149,528 which is payable

within three years at 0% interest rate.

e. TIME TABLE AND STATUS OF THE PROJECT

The researchers used the Gantt chart to organize the schedule of activities

required to bring the business to operations.

The first two simultaneous activities were meeting with the proponent and

conducting a feasibility study during the months of June, July, August and

September 2012 which determines the feasibility of the proposed project. After

the proponent approves the recommendations and make changes and other

decisions, processing for the legal requirements will follow during the months of

September and October 2012. Renovations of the establishment will also start in
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October and will end in December. On January 2013, the building and the

renovations should be inspected and the establishment will start the electric and

water installations. For the months of January and February, the proponent will

start purchasing the equipments, machines, furniture, supplies, etc. needed for the

business to operate. In the same months, the hiring and recruitment of employees

and their physical examinations will also be conducted. On the months of

February and March employees will be trained. Pre-operating advertising starts on

the month of January and will run until the production center’s soft-opening and

start of operations in March.

GANTT CHART
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VI. SUMMARY OF FINDINGS

A. MANAGEMENT ASPECT

The proposed malunggay noodles production center will be in a form of sole

proprietorship that will be owned and managed by Ms. Josephine G. Noble.

The management structure of the business is quite simple. The production

center will have a total of two (2) workers: one (1) assigned to man the machineries in

the noodle-making and packaging process and one (1) janitor who will also act as the

driver during delivery of the products every other Saturday. It will also have one (1)

on call bookkeeper who will report only once every week or when needed.

B. MARKET ASPECT

The target market of the proponent is the general public and residents of

Dumaguete City particularly students, working professionals and senior citizens.

The market study showed that putting up a malunggay noodles peoduction

center in the city is feasible. Since, the result of the survey showed that among the

402 consumer respondents, there were 337 or 83.83% of them are willing to patronize

the proposed malunngay noodles in Dumaguete City while only 65 or 16.17% are not

willing to patronize it. Among the 107 store owners and purchasing personnel

respondents, 83 or 78% are willing to carry malunggay noodle products in their stores

while 24 or 22% are not willing to carry the product in their stores.
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C. TECHNICAL ASPECT

The proposed malunggay noodles production center will be located Purok

Santa Luisa, Barangay Buñao, Dumaguete City. The production center layout is

one wherein the machineries and processing areas are arranged in such a way that

there will be a smooth flow of production for efficiency in the manufacturing

process. The finish products will be put in a storage room for safety and

protection from dust, dirt and other contaminations that could come from other

sections.

The raw materials to be used in the production of malunggay noodles are

the grind malunggay leaves or malunggay flakes, wheat flour, water, eggs, and

iodized salt. These will be processed by the noodle-machine purchased and

operated by the processing worker hired by the owner. A janitor will also be hired

to maintain the cleanliness and proper sanitation of the production center. The

business will submit to the current waste disposal system of the barangay which is

segregation at source.

D. FINANCIAL ASPECT

To summarize, it can be said that the proposed project is not feasible

financially, for the reason of extensive payback period, where the business would

take about 12 years in order to recover its initial capital. The projected annual

income of the said business is too low that it would take the business so long to

recover its capital.


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E. LEGAL ASPECT

To avoid legal conflicts, the establishment will agree to the conditions and

provisions mandated by the law. Moreover, the proponent decided to outsource its

employees and same with the provisions of the law, the proponent will also submit to

the proposed agreement they will come up with the man power service as well.

F. SOCIO-ECONOMIC ASPECT

The city of Dumaguete will surely benefit from this establishment, aside

from taxes, the city will have its first malunggay noodles production center. This

would also employ people and would help in the efforts of the city in its advocacy on

healthy living. The people of Dumaguete will be more aware of the benefits provided

by malunggay and would be encouraged to consume healthier food. Surely this

proposed business will have a positive impact to the city’s economic development.

G. ENVIRONMENTAL ASPECT

The proposed noodles shop ensures that it will comply with the necessary

requirements of DENR, as well as the employees’ health condition which will be

assessed accordingly. In the facility, the establishment will make sure it follows the

building code required by the city on how to properly handle waste materials. The

establishment will also see to it that it has a sanitation permit as well as it will submit

to assessment anytime the city demands.

I. MANAGEMENT ASPECT
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A. BASIC CONSIDERATION

People of Dumaguete are becoming more conscious about their bodies and

on keeping themselves healthy. With this in mind, people look for healthier food

to keep them fit and healthy. Having malunggay in noodles is better and healthier

because malunggay is rich with vitamins and minerals.

B. FORM OF OWNERSHIP

Nutri-M is a single proprietorship business which is owned by Ms.

Josephine Noble.

All profits would go to the owner of the business, as all liabilities will be

charged against her, as well. The amount of money the proprietor will draw from

the business forms part of the withdrawal of capital.

Forming a single proprietorship has both disadvantages and advantages.

This type of organization is very suitable for small businesses such as the business

the researchers are currently conducting a feasibility study on. However, the sole

proprietor is personally held liable for the business debts and obligations and risks

even extend to liabilities incurred as a result of acts committed by employees.

Though being a sole proprietor is a heavy burden because he/she is solely

responsible for the business’ success and failure, there are still a good number of

advantages that a single proprietorship possess. The sole proprietor has complete

control and decision-making power over his/her business. Also, only few business

requirements are necessary, minimal legal costs, less operating regulations by

government, less conflict and disagreements in management, easier increase or


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decrease in capital, and lower tax rate than that of the corporate or partnership

form, are the advantages of a sole proprietorship business.

C. ORGANIZATIONAL CHART

Owner/Manager

Bookkeeper

Processing Janitor/
worker Driver

Manpower Requirements

1 – Processing worker

1 – Janitor/ Driver

Since this is just a small business, the owner will not hire a manager. She

will manage it herself. She will hire two (2) workers to be assigned in the noodle

making process and packaging, and one (1) janitor for the production center who

will also be the driver during delivery of the products. The owner will also

outsource the service of one (1) on call external bookkeeper from an agency.

Under its management, the Nutri-M will open for 9 hours from 8 o’clock in the

morning until 5 o’clock in the evening. It will only operate for 6 days from

Monday to Saturday.
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D. OFFICERS AND KEY PERSONNEL

Manager/Owner:

The manager/ owner is the one who handles the operations of the business

and is the person responsible for supervising and managing the business. She is

also the one who makes the final decisions regarding

The Personnel:

The business establishment has to hire two (2) workers to be assigned in

the noodle making process and packaging, and one (1) janitor/driver. It will also

require the service of one (1) on call external bookkeeper to make the financial

statements. All these personnel are needed in the daily operation of the business.

Except for the bookkeeper who shall report only twice a month or when called.

JOB ANALYSIS

Job analysis is the formal process of identifying the content of a job in terms activities

involved and attributes needed to perform the work and identifies major job requirements. It

provides information which helps determine which employees are best fit for specific jobs.

Basically, job descriptions and job specifications are the outcomes of job analysis. These enable

the owner to hire the right quality of workforce into her business. These outputs summarize the

specific conditions under which each employee will work, job qualifications and other

requirements set by the owner.

Job Description
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A job description is a detailed and organized list of duties, functions, and responsibilities

of a specific position. It provides essential information to potential recruits (and the recruiting

team) so that they can determine the right kind of person to do the job by setting out the purpose

of a job, where the job fits into the management structure, the main accountabilities and

responsibilities of the job and the key tasks to be performed.

Job Specification

Job specification is a statement derived from job analysis containing the description of

the knowledge, skills, and abilities along with the associated education, training, and experience

required of an employee or worker to successfully perform a specific job or position. The

stipulated criteria normally constitute the minimum recruiting criteria or minimum qualifications

for the job or position.

JOB TITLE: PROCESSING WORKER

Job Description:

 Responsible for operating the machineries used in making and packaging of malunggay

noodles.

Job Specifications:

 Must be 18 years and above

 Must be a resident of Brgy. Buñao (to aid in Buñao residents’ employment)

 Male or Female

 Physically and Mentally fit

 Must have good health condition

 Must be of good moral character


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 Hardworking

Requirements:

 Bio-data with 2 x 2 picture

 Police/NBI Clearance

 Barangay Clearance

 Medical Certificate

JOB TITLE: DRIVER/JANITOR

Job Description:

 Responsible for transporting raw materials

 Delivers orders to stores

 Responsible for keeping the entire factory neat and clean

 Responsible for segregating and disposing wastes of the production center

Job Specifications:

 Must be 18 years and above

 Must be a resident of Brgy. Buñao (to aid in Buñao residents’ employment)

 Must have a non-professional or professional driving license

 Preferably male

 Physically and mentally fit

 Experience Required

 Must be of good moral character and

 Hardworking

Requirements:
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 Bio-data with 2 x 2 picture

 Police/NBI Clearance

 Barangay Clearance

EMPLOYEE’S WORK SCHEDULE

PROCESSING WORKER

 The processing worker will report to work from 8:00am to 5:00pm from Monday to

Saturday. They are given one hour lunch break from 12:00nn to 1:00pm and then work

resumes.

JANITOR/DRIVER

 Reports to work from 8:00am to 5:00pm from Monday to Saturday. He is also given one

hour lunch break from 12:00nn to 1:00pm and then work resumes. Every other Saturday,

he will be responsible in delivering the malunggay noodle products to the different stores

here in Dumaguete City.


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II. MARKETING ASPECT

A. MARKET FACTOR

1. MARKET DESCRIPTION

The primary target market of the proposed malunggay noodles product is

the general public of Dumaguete City, particularly the students, working

professionals, and the senior citizens. This is because malunggay noodles are

good for all people. And since Dumagueteños are becoming health-conscious,

malunggay noodles would fit them.

Dumaguete City being considered as a “University Town,” students would

be great potential customers and consumers of the moringa noodles. Busy

working professionals and senior cititzens who are getting health conscious also

take a significant fraction of the target market.

2. PRODUCT DESCRIPTION

Nutri-M is a noodle product with malunggay as its main ingredient.

Malunggay or moringa oleifera is the most widely cultivated species of the genus

Moringa. Scientific research confirms that these humble leaves are a powerhouse

of nutritional value. Gram for gram, moringa leaves contain: seven times the

vitamin C in oranges, four times the Calcium in milk, four times the vitamin A in

carrots, two times the protein in milk and three times the Potassium in bananas. It

has also been said that moringa has potential to improve nutrition, boost food

security, foster rural development, and support sustainable landcare. With high
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nutritional value, and with no added preservatives, Nutri-M malunggay noodles

provide health benefits to its consumers.

Nutri-M malunggay noodles come in plastic wrapped packs. Small packs

are suitable for individual consumption, weighing 60 grams. Large packs which

may be consumed by two or three people weighs 150 grams.

The proponent had also thought of varying the shape of the product. Nutri-

M may come in strips or in a circular shape or form. The variation of the shape is

for marketing reasons. A different shape offers people, especially the kids, a new

experience of consuming noodles or pasta. These can be cooked in boiled water

for about 3-4 minutes according to the consumer’s preferred menu or dish. And

with the conduct of future research and development, the proponent thought of

making seasonings, and flavorings that could go along with the product.

3. DEMAND

The tallied data and results of the survey conducted in Dumaguete City

were very essential in analyzing the demand for the proposed malunggay noodles

project. In forecasting for future demand, the researchers took into account

important figures reflected from the results of the survey conducted.

Based on the information gathered, the researchers have come to the

realization that there really is a demand for malunggay noodles here in

Dumaguete City. There are a good number of people who are willing to patronize

malunggay noodles.
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The result of the survey showed that among the 402 consumer

respondents, there were 337 or 83.83% who are willing to patronize the proposed

malunggay noodles here in Dumaguete City while only 65 or 16.17% will not

patronize it. Among 107 store owners or purchasing personnel, 83 or 78% are

willing to carry the product in their stores provided that it would be approved by

the Bureau of Food and Drugs while 24 or 22% are not willing.

If approved and pursued, this would be the first malunggay noodles

production center in Dumaguete City. And people who love eating noodles and

are seeking healthy lifestyles will surely patronize this product.

4. SUPPLY

Here in Dumaguete City, there is still no production center for malunggay

noodles. And the market potential of this kind of business should not be

neglected. Nutri-M will greatly contribute to the local government’s effort of

putting the lifestyle of Dumagueteños to the next level.

5. DEMAND-SUPPLY ANALYSIS

Supply and demand is one of the most fundamental concepts of economics

and backbone of a market economy. And as Dumaguete City becomes one of the

fast growing cities in the country, people must keep up with its fast progress. To

be able to keep up, one must always be on the go but still keep their bodies

healthy which leads to the demand for healthier food such as malunggay noodles.

Considering the fact that there is still no established production center of


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malunggay noodles here in Dumaguete to cater to the demand, this proposed

business venture is really of great potential.

6. COMPETITOR’S PROFILE

The competitors of noodles here in Dumaguete City are the noodle

products of Monde Nissin, Maggi, Lucky Me, HOBE, QuickChow, and Homi.

 Monde Nissin Corporation

Monde Nissin Corp is one of the leading producers of noodles here in the

country which has extended its “Lucky Me” instant noodles range. Monde Nissin

Corp maintained its dominant position in noodles in 2010, claiming an overall

value share of 59%. Offering a wide assortment of products and flavors under its

Lucky Me! Brand, the company was the clear leader in both the cups/bowl instant

noodles and pouch instant noodles categories. Aside from its wide assortment and

extensive distribution network, the company’s dominance also reflected its

superior capacity for innovation. Monde Nissin Corp was the first player to

introduce product types such as pancit canton and Asian flavoured noodle soups

in the Philippines, for example, and it continues to invest heavily in research and

development. Sustained investment in high profile marketing campaigns that

feature local celebrities has also helped the company to maintain its leading

position.
29

 Maggi noodles

“Maggi noodles” is a brand of instant noodles manufactured by Nestlé.

This brand is popular in Australia, India, South Africa, Brazil, New Zealand,

Brunei, Malaysia, Sri Lanka, Bangladesh, Fiji and the Philippines. Maggi noodles

are part of the Maggi family, a Nestlé brand of instant soups, stocks, and noodles.

Maggi noodles recently introduced a new variety of its noodles, to cater for the

health conscious like 'No MSG', 'Less Salt', and 'No Trans fat'. A new feature is

an extra sachet containing dehydrated vegetables. Maggi claims the new range

contains 88% less total fat and 86% less saturated fat than the average of top-three

(unnamed) 2-minute-noodle competitors. The new Maggi range also has

considerably lower fat than its own previous formulation. However, the salt

content has been increased by 31 percent. Consumers have not reacted well to the

new formulations, complaining that they want the original chicken flavor back.

Claimed to be "2 minute noodles", The Maggi noodle cake and seasoning is added

into boiling water for two minutes and it is ready for consumption. Egg, seaweed,

boiled vegetables or lemon can also be added to the noodles for a better flavor.

 Lucky Me Noodle Company

For more than 2 decades now, has been consistent in giving the Filipino

consumers high quality products like Monde biscuits and Lucky Me noodles.

Being the Filipinos most loved and favorite noodles. Lucky Me now opens this

door to its Lucky Me noodles And discover the wonderful world of noodles.
30

 HOBE

With more than 2 decades of experience in producing high quality food

products, Marikina Food Corporation is one of Philippines' pioneers of machine

processed and dried bihon products. We are the producer of authentic, great

tasting bihon products such as HOBE and TAKAMI.

 QuickChow (Zest-O Company)

Venturing in the instant noodles segment with the QUICK CHOW,

QUICKIE, TEKKI YAKIUDON and ASIAN CLASSIC brands has further

propelled its business. With these brands, the company was able to capture a

significant share of the noodles market in which its Quick Chow brand now

enjoys the No. 1 spot in the Visayas and Mindanao Regions and holding the third

in the Greater Manila Area. Another successful product was born when

Quickchow Instant Mami was introduced in the market. Already the No.1 brand

in the Visayas and Mindanao, Quickchow is able to capture the taste every

Filipino is looking for instant noodles. Patterned after the popular mami recipe,

the noodles is available in chicken, beef, pork, hot and spicy chicken and beef

flavors.

 Ho-Mi (Uni-President)

With its signature firm noodle texture and its uniquely authentic Chinese

soup taste, Ho-Mi swiftly grew into one of the nation’s leading instant noodle

brands today. Ho-Mi is manufactured by Uni-President, one of the biggest food


31

manufacturing conglomerates in Taiwan and is a top ten player in China and in a

majority of other countries in Asia. With the ever-evolving taste buds of Filipinos,

Ho-Mi Instant Noodles is quick to capture a top spot in the market by delivering

decades-long experience of noodle-making to the Philippines. Uni-President is

also the maker of other fine products such as Nooda-Crunch and Uni-President

line of beverages.

7. PRICING SCHEME

Being one of the most important aspects in marketing, pricing is the

process of determining what a company will receive in exchange for its products

and services. Although there are variety of methods that may be used to

mechanically compute for the price of the products and services, there are still

important external factors which should also be considered. The price allocation

for products will be affected by factors such as cost, market condition, quality of

the product, the purchasing power of interested buyers, etc. Pricing must be

seriously done because of its importance.

B. MARKETING PROGRAM

All businesses that offer some products and services want to have huge

number of customers. The sales of the business mostly depend upon their

marketing strategies. It is the job of the owner or a person assigned to this task, to

develop ways to create or improve a marketing system. Gaining good reputation


32

and healthy profit is the core essence of every company. This job requires great

marketing program and strategies.

The following are the proposed strategies for the business:

Product

The proponent had thought of varying the shape of the product as part of

its marketing strategy. Nutri-M may come in strips or in a circular shape or form.

A different shape offers people, especially the kids, a new experience of enjoying

and consuming noodles or pasta. Another strategy that the proponent thought of is

making her own seasonings, and flavorings that could go along with the product.

However, this strategy will not apply immediately, since there is still a need for

her to conduct researches to be able to make her own formula of original

seasonings and flavorings.

Place

The proposed production center will be situated at Purok Santa Luisa,

Barangay Buñao, Dumaguete City. Since the proposed production center will be

located just within the City of Dumaguete, deliveries and supply to different

stores is faster and easier compared to those produced outside the city. The

location is also accessible to local buyers or consumers of Brgy. Buñao.

Price

For the proposed malunggay noodles, the following factors have to be considered

in their price allocations: cost of ingredients used, cost of labor and utilities, and mark-up.
33

In this study, the pricing strategy to be followed would be a cost-based pricing.

This is absolutely necessary that the venture must yield a profit.

Promotion

Promotion provides potential customers the knowledge of the existence of

a new business establishment. Promotional activities are the methods used to

communicate the benefits and features of the business’ products and services to its

customers. The business will advertise its products through the following

mediums:

a. Leaflets

This is another medium to promote the new business. The leaflets

should contain important information about the business such as the business

name, the location of the establishment and what products are offered. The

best thing to create a flyer is to keep it simple. Don't fill it with extra words to

puff up the length of text. The best read words are ones that are well-edited.

Leaflets are also very cheap.

b. Seminars

The proponent also plans to hold an awareness seminar to promote the

new business. This is a way to inform customers about the health benefits of

malunggay which might encourage them to start eating them. She plans to

start giving the seminar to students in their schools. The cost will depend

where the seminar is held. During the seminar, there will also be free tasting

for those who will join. Also, she plans to promote the product during exhibits
34

in malls and give free tasting for their products. Seminars will most likely be

held in barangay halls and schools.

c. Radio advertisement

To make the proposed business be recognized to its target market,

radio advertisements will be aired at a local radio station such as Energy FM.

These advertisements usually run for 30 seconds only. The advertiser should

be able to maximize the time given and mention all the important details of

the business such as the name and location which should be mentioned at least

two times in a 30-second ad. The advertisements will start months prior to its

opening and will be aired three times a day. Radio stations have advertisement

packages to lessen the costs.

d. Social network

Nowadays, a lot of people are no longer strangers to the virtual world.

They keep themselves updated with the technological advancements. And

people are already using the internet to share and acquire information. They

are connected to social networks such as Facebook, Twitter, and others. The

business can make its own page to give the customers all the information they

need to know about the business. This gives an opportunity for the business to

endorse itself without incurring too much expense.

e. Distributing free samples

Free sampling is a great technique to grasp the attention of the customers.

Out of the selling strategies, distribution of free samples is considered greatly


35

to improve sales and promote revenue. This is because most people have a

habit of trying things that are new to them and this curiosity provides a

company/business with an advantage to penetrate into their minds. The

investment on free samples is minimal compared to the opportunity it gives

especially when it is successful in grabbing the interest of the people. Free

samples will be distributed for free tasting on seminars and lectures in the

different barangays, schools and stores.

These activities of promotion are effective means of reaching a wide

audience and good for building awareness to potential customers since advertising

is intended to persuade and to inform.

People

Customers

The target market of Nutri-M malunggay noodles is the general public

which is composed of students, working professionals, senior citizens of

Dumaguete City. The store establishments will serve as the intermediaries in

order for the malunggay noodles to reach the consumers.

Employees/Workers

Employees of Nutri-M production center must possess the characteristics

and qualities that have been set and required by the owner for them to be best

suited for the job. These employees must be oriented and properly trained with the

business operations.
36

Competitors

Since there is still no malunggay noodles production center established

here in the city, the proposed business does not have any direct competitors.

However, noodles produced from other places are sold here. Though they are only

indirect competitors, they still play a huge impact because a lot of Dumagueteños

are patronizing their products.

Suppliers

The ingredients and supplies necessary in the production of malunggay

noodles can be bought locally at different stores. But the proponent identified

Yan-Yan Commercial as its primary supplier because of the price. The supplier of

plastic wrappers to be used in the packaging will be from another place probably

in Cebu since there are no packaging establishments here in Dumaguete capable

of producing printed plastic wrappers. Other suppliers of the raw materials needed

are just found around the city. Malunggay flakes will be subcontracted from Mr.

Florante J. Vicuña, who is a producer of ground malunggay products and

capsules. This is to ensure the safety and sanitation of the malunggay to be used in

the production. This also saves time, energy, effort, and equipment and electricity

expenses and lessens the burden of the worker since grinding malunggay leaves

will be eliminated in the process.

Potential Customers

Since Nutri-M caters to the general public, public awareness of the

product is necessary. The proponent plans to conduct seminars and lectures in

barangay halls and schools to inform potential customers and provide awareness
37

of the health benefits of malunggay to encourage them to start consuming

malunggay noodles and to increase demand for the products. Participants will be

the residents of the different barangays, students, teachers, and other concerned

citizens.

C. PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

This part of the study will show the result of researchers’ data gathering from the

distributed questionnaire. The purpose of this study is to know whether the proposed

malunggay noodles product will have a competitive market when it is commercialized.

For the gathering of data, the researchers distributed two sets of questionnaires;

the first one is for the general public which is the consumers or the indirect customers of

the business and the second one is for the store establishments which are the direct

customers. The group thought that it would be better to gather data from both consumers

and stores, since the proposed business is a production of malunggay noodles.

1. Indirect Customers

The first set of questionnaires is intended to gain information from general public.

It would help the researchers know whether the malunggay noodle product is

favorable or marketable to the general public.


38

Graph 1.1
Current Level of Interest

Percentage of respondents who buy noodles


No
10%

Yes
90%

Table 1.1
Current Level of Interest

No. of Graph 1.1 and Table 1.1 show the


Percentage
Options Respondents
level of interest of the consumer
363 90.30%
Yes respondents. This information will help

39 9.70% us know if malunggay noodles will be


No
favorable to consumer in the market.
Total 402 100.00%
The figures show that there are 363 out

of 402 or 90.30% of the respondents are buying noodles. However, with this data alone, the

researchers cannot presume that malunggay noodle is favorable in the market for the result in the

store survey must be considered, the stores are the direct customer of the business, they are the

one who will carry out the product of the business and sell it to the consumers.
39

Graph 1.2
Consumer Bases

Percentage of respondent's bases in buying noodles

66.67%
Appearance
Taste
Price
41.60%
Cooking time
35.81%
Smell
Nutrition level
20.39% 22.04% 24.24%
18.46% Volume
Others

1.93%

Percentage rate

Table 1.2
Consumer Bases

No. of Graph 1.2 and Table 1.2 show the bases of


Bases Percentage
Respondents
the consumer respondents in buying noodles.
Appearance 74 20.39%
The data reveal that the highest percentage is
Taste 242 66.67%
the taste which has 66.67%, followed by the
Price 151 41.60%
price which has 41.60%, nutrition level having
Cooking time 80 22.04%
35.81%, then smell having 24.24%, cooking
Smell 88 24.24%
time having 22.04%, appearance having
Nutrition level 130 35.81%
20.39%, volume 18.46%, and lastly others
Volume 67 18.46%
having 1.93%.
Others 7 1.93%
With this figures, we could assume that the

consumers are mostly concerned with the taste of the product, price of the product and its

nutrition level. This 3 characteristics could greatly influence the demand of the product, therefore
40

malunggay noodles must taste good, have an affordable price and a satisfying nutrition level in

order for the product to be favorable to the consumer market. A free taste has not yet conducted,

so the researchers cannot determine whether the taste of the product is good. The price seems to

be affordable because the small packs of malunggay noodle is less than eight pesos. And

concerning about the nutrition level, the researchers are confident that the malunggay noodle

product will give the consumer more nutrients than the other noodle products.

Graph 1.3
Traffic as to frequency

Percentage of the respondent's frequency in buying noodles


55.65%

Everyday
Every week
Once a month
25.07%
Others

12.67%
6.61%

Percentage rate

Table 1.3
Traffic as to frequency

No. of Graph 1.3 and Table 1.3 show how frequent


Frequency Respondent Percentage
s are the consumers buy noodles. The figures
Everyday 24 6.61%
reveal that 202 out of 363 or 55.65% of the
Every week 202 55.65%
respondents buy noodles every week, 91 out of
Once a month 91 25.07%
363 or 25.07% of the respondents buy every
Others 46 12.67%
41

month, others have 12.67%, and there are only 6.61% of the respondents who buy noodles every

day. This data would help us assume that there would be demand of malunggay noodles every

week.

Graph 1.4
Traffic as to Quantity

Percentage of the average consumption of noodles base on the


respondents frequency in buying noodles

85.12%

1-5 packs
6-10 packs
More than 10 packs

13.22%

1.65%

Table 1.4
Traffic as to Quantity

No. of Graph 1.4 and Table 1.4 illustrate the


Options Percentage
Respondents
average quantity of noodles that they will
1-5 packs 309 85.12%
buy for a period of time. The data will
6-10 packs 48 13.22%
help the researchers to know the quantity
More than 10 packs 6 1.65%
that must be produced for a certain period
Total 363 100.00%
of time. Since there are 309 out of 363 or

85.12% respondents who chose 1-5 packs, we could then assume that there is a lesser quantity

for every demand of the product. But with this data alone, we cannot say that there will be less
42

profit for malunggay noodes. There are still many factors that must be considered in order for us

to know if the product is profitable or not.

Graph 1.5
Preferences as to Packaging Size

Percentage of the sizes of noodles that preferred by


respondents

87.33%

12.67%
Small pack Large pack

Table 1.5
Preferences as to Packaging Size

No. of Graph 1.5 and Table 1.5 show what would


Sizes Percentage
Respondents
be the better size for the malunggay noodles. The
Small pack 317 87.33%
figures tell us that small packsam containing sixty

Large pack 46 12.67% (60) grams would be more favorable in the market

which has 317 out of 363 or 87.33% respondents.


Total 363 100.00%
Therefore we could assure that small packs would

be better and more favorable size than large packs which contain 150 grams.
43

Graph 1.6
Preferred Packaging

Percentrage of the respondent's preferred packaging


72.73%

plastic wrapped noodles


instant cup noodle

27.27%

Table 1.6
Preferred Packaging

No. of Graph 1.6 and Table 1.6 will help us


Options Percentage
Respondents
know what packaging the consumers
plastic wrapped noodles 264 72.73%
would prefer. The data show that 264

instant cup noodle 99 27.27% out of 363 or 72.73% of the

respondents would like the product to


Total 363 100.00%
be plastic wrapped. It could be for the

reason that plastic wrapped noodles are cheaper than instant cup noodles. So we could assume

that if the malunggay noodles would be plastic wrapped, it would be favorable to the market.

Graph 1.7
44

Type of Products

Percentage of the type of noodles that is usually bought by consumer


respondents

94.21%

Yellow noodles
Ramen noodles
Misua noodles
Others

17.91% 20.66%

0.00%

Table 1.7
Type of Products

No. of Graph 1.7 and Table 1.7 show the


Types of Noodles Respondent Percentage
s usual type of noodles that the stores sell.
Yellow noodles 342 94.21% The two illustrations let know that yellow
Ramen noodles 65 17.91% noodles are the most usual type of noodles

Misua noodles 75 20.66% that are sold in the market which has

Others 0 0.00% 94.21%. With this, we can assume that

yellow noodles are the most saleable product for almost all of the stores that are selling noodle

product. And this situation gives a favor for the malunggay noodles for it belongs to the yellow

noodles which we could say have a great demand in the market.

Graph 1.8
45

Starting Price

Percentage of the prices that respondents


usually spend for every type of noodles
80.00%

70.00%

60.00%
Price less than 8
50.00% Price P8-10
40.00% Price P11-13
Price More than 13
30.00%

20.00%

10.00%

0.00%
Yellow Ramen Misua Yellow Ramen Misua
noodles noodles
Small pack Large pack
Types of Noodles

The Graph 1.8 would help us know what price would be competitive in the market. In the

graph, we could see that the usual price of small pack yellow noodles and small pack ramen

noodles are form 8 pesos to 10 pesos, while the small pack misua is less than 8 pesos. And in the

large pack noodles, yellow noodles and ramen noodles have a usual price of more than 13 pesos,

while misua has 8 to 10 pesos. But with this data alone, we could not set the price at its

competitive state, for the result from the store survey should be considered.
46

Graph 1.9.A
Level of Awareness

Percentage of the respondents who have tried malunggay


noodles
Yes, No

20.11%

79.89%

Table 1.9.A
Level of Awareness

No. of Graph 1.9.A and Table 1.9.A only reveal the data
Options Percentage
Respondents
that would show how many consumer respondents
Yes, 73 20.11%
have already tried malunggay noodles. The two

No 290 79.89% figures illustrate that 290 out of 363 or 79.89% of the

respondents have not tried malunggay noodles, and


Total 363 100.00%
73 out of 363 or 20.11% of them already tried

malunggay noodles product.


47

Graph 1.9.B
Level of Awareness

Percentage of respondents who find malunggay noodles


delicous and nutritous
Yes No
9.59%

90.41%

Table 1.9.B
Level of Awareness

No. of The group decided to ask if the malunggay noodles


Options Percentage
Respondents
that the respondents’ tried are delicious in order for
Yes 66 90.41%
us to know if the existing malunggay noodles would

No 7 9.59% click to the taste of the consumer respondents.

The Graph and Table 1.9.B show that out of 73


Total 73 100.00%
respondents that have tried malunggay noodles, there

are 66 or 90.41% of them said that malunggay noodles are delicious and only 7 or 9.59% of them
48

said it was not delicious. Thus, we could assume that the taste of the malunggay noodles would

click to the majority of the consumer respondents.

Graph 1.10
Public Support

Percentage of respondents who are willing to patronize


malunggay noodles
Yes No

16.17%

83.83%

Table 1.10
Public Support

No. of Graph 1.10 and Table 1.10 will show us if the


Options Percentage
Respondents
consumer respondents or the indirect customers of
Yes 337 83.83%
the business would patronize the malunggay noodles.

No 65 16.17% The two figures reveal that there are 337 out 402 or

83.83% of the consumer respondents are willing to


Total 402 100.00%
patronize the product. Although the store survey

should still be considered, this data still give a great significance to the study for consumers
49

demand would greatly affect the decision of the stores to carry out this product. Therefore, there

could be a great chance that the malunggay noodle product will be favorable to the market.

Suggestions or Comments from the general public

Positive:

 The consumer respondents suggested that it would be better for the business to conduct a

free taste during the business’s pre-operating period.

 They said that the product would be marketable for the health concerned people.

 The product must have no preservatives added.

 It must be nutritious than the other noodle products.

 They already want it in the market.

 It must be advertised in order for the other consumers to be aware of the product.

 The business should make a large scale of the product.

 When conducting a free taste, it must also have an explanation or lectures concerning

about its benefits.

 They said that the product is unique.

 It must be sold at a low price.

Negative:

 Other respondent said that they don’t like the product because they think that the color of

the malunggay noodle product is not pleasing.

 Other respondents said that they don’t like “veggies”.

 They have not tried it yet, and they don’t want to try it.

 Malunggay noodles are kind of a gross product.

 Noodle products are not good in our body.


50

2. Direct Customers

The second set of questionnaires is for the store establishments which are the

direct customers. It would help the researchers understand more about the

marketability of the malunggay noodle product.

Graph 2.1
Compositions of Store Respondents

Composition stores according to category


46.73%

37.38%

Percentage rate

15.89%

0%
Supermarket Convinience Grocery Others

Table 2.1
Composition of Store Respondents

Store No. of Store Graph 2.1 and Table 2.1 illustrate the
Percentage
Category Respondents
Supermarket 0 0% composition of our store respondents. As shown

Convenience 40 37.38% in our illustrations, 46.73% or 50 of our store


Grocery 17 15.89%
respondents belong to other category which
Others 50 46.73%
includes large sari-sari stores and Mini markets,
Total 107 100.00%
37.38% or 40 of it are Convenience stores, 15.89% or 17 of it are Grocery stores and there are no
51

store respondents that belongs to a Supermarket category. This information could give us an

assumption that the result from our second questionnaire which is for stores can be more

appropriate for those Sari-sari stores and Mini markets. However, we, the researchers give no

great significance to the composition of store respondents for we all know that there were more

Sari-sari stores and Mini mart that are established here in Dumaguete City than Supermarkets,

Convenience Stores and Grocery Stores.

Graph 2.2
Current Level of Interest

Percentage of stores who are selling noodles


Yes No
3.74%

96.26%

Table 2.2
Current Level of Interest

Options No. of Store Graph 2.2 and Table 2.2 will give the
Percentage
Respondents
Yes 103 96.26% researcher the level of the demand for the noodle
No 4 3.74%
Total 107 100% products in the market. The figures show that 103

out of 107 store respondents or 96.26% of them are selling noodles. According to the

information revealed, the current level of interest of the store respondents is high. With this
52

information, we could assume that producing noodles can be a good business since there are

many stores who are selling noodles.

Graph 2.3
Level of Competition

Percentage of stores that sells noodles made in Negros Oriental


Yes No

20.39%

79.61%

Table 2.3
Level of Competition

No. of Store Table 2.3 and Graph 2.3 will let us know the level
Option Percentag
Respondent
s e
s of competitors that are already in the market. The

Yes 21 20.39% figures illustrate that only 21 out of 103 or 20.39% of

the store respondents who are selling noodles have


No 82 79.61%
noodles that are made in Negros Oriental and 82 out of
Total 103 100%
103 or 79.61% of them do not sell noodles made in the

province. This only shows that there are already establishments in Negros Oriental who are also
53

producing noodles. So we could assume that there will be 20% direct competitors that could

affect the proposed business.

Graph 2.4
Store Owners’ Bases

Percentage of store respondent's bases in selling noodles

73.79%

62.14%
54.37% 56.31% Brand Equity
Price
Quality
Inventory Turnover
Others

0.97%

Percentage rate

Table 2.4
Store Owners’ Bases

Bases No. of Store Graph 2.4 and Table 2.4 will help us know
Percentage
Respondents
Brand the bases of the stores in carrying out a noodle
64 62.14%
Equity
Price 76 73.79% product. The figures show that the price has the

Quality 56 54.37% highest percentage which has 73.79%, followed by


Inventory
58 56.31% the brand equity which has 62.14%, inventory
Turnover
Others 1 0.97%
turnover which has 56.31%, quality which has

54.37%, and lastly others which have only 0.97%. With those data, we could assume that the
54

decision of the stores to carry out a noodle product will depend greatly on the price of the

product. Thus, the lower the price of malunggay noodles, the higher the chance that the stores

will carry it out. But still the brand equity or popularity of the product, quality, and inventory

turnover should also be considered.

Graph 2.5
Usual Packaging Size

Percentage of noodle sizes that the stores usually sell

74.76%

48.54%

Small pack Large pack

Table 2.5
Usual Packaging Size

No. of Store Graph 2.5 and Table 2.5 show the usual
Sizes Percentag
Respondent
e sizes of the noodles that the stores are selling.
s
Small pack 77 74.76% The two illustrations reveal that 74.76% of the
Large pack 50 48.54%
store respondents usually sell small pack noodles

and 48.54% of them sell large pack noodles. The total percentage exceeds 100% for there are
55

respondents who chose both small pack and large pack. The excess of 23.30% is the percentage

of store respondents who are selling both small and large pack of noodles.

With that information, we could assume that small pack noodles would still be more

favorable than large packs, it maybe be because small pack will always have lower price than the

larger once, and as discussed earlier stores are greatly concerned with the price as shown in

graph 2.4 and table 2.4.

Graph 2.6
Type of Products

Percentage of every type of nooldes that stores usually sell

98.06%

Yellow noodles
Ramen noodles
Misua noodles
Others
37.86%

15.53%

0%
Percentage rate

Table 2.6
Type of Products

No. of Store
Type of Noodles Percentage
Respondents Graph 2.6 and Table 2.6 show the
Yellow noodles 101 98.06%
usual type of noodles that the stores sell.
Ramen noodles 16 15.53%
Misua noodles 39 37.86% The two illustrations tell that yellow

Others 0 0% noodles are the most usual type of

noodles that are sold in the market which has 98.06%, followed by the misua noodles which have
56

37.86% and lastly the ramen noodles which only have 15.53%. With this, we can assume that

yellow noodles are the most saleable product for almost all stores are selling it. And this situation

gives a favor for the malunggay noodles for it belongs to the yellow noodles which we could say

have a great demand in the market.

Graph 2.7
Starting Price

Costs for every type of noodles that the stores


usually spend for every pack of noodles

Price less than 8


Price P8-10
Price P11-13
Price More than 13

Yellow Ramen Misua Yellow Ramen Misua


noodles noodles
Small pack Large pack
Type of Noodles

Graph 2.7 shows the prices that are usually set to every pack of noodles. The illustration

shows that the usual price that stores spend for small pack yellow noodles is less than 8 pesos,

more than 13 pesos for small pack ramen, and less than 8 pesos also for small pack misua. While

in large packs, all are usually priced at more than 13 pesos. With the help of this data, we could

now set the competitive starting prices of malunggay noodles if it will be commercialized in the

market. It would be better for small pack of malunggay noodles to have a price of less than 8
57

pesos, and large packs can have a price of more than 13 pesos. However, we must make sure that

the prices that we set must be profitable and affordable to the general public.

Graph 2.8.A
Public Support

Percentage of stores that are willing to sell Negros-made


noodles

15.89%
Yes No

84.11%

Table 2.8.A
Public Support

Table 2.8.A and Graph 2.8.A illustrates the interest


Option No. of Store Percentag
s Respondents e of the store respondents to the Negros-made noodles.
Yes 90 84.11% The two illustrations show that there are 90 or

No 17 15.89% 84.11% of the respondents are willing to carry out

Negros-made noodles, and only 17 or 15.89% of


Total 107 100% them are not willing to carry it out. With this

information, we could assume that noodle business is favorable in the market. However, the

researchers cannot size up the level of public support with this data alone for its purpose is only
58

to know if they are willing to patronize or carry out Negros-made noodles. It does not specify the

product of the proposed business.

Graph 2.8.B
Public Support

Percentage of stores that would like sell malunggay


noodles
Yes No

No
22.43%

Yes
77.57%

Table 2.8.B
Public Support

Options No. of Store Table 2.8.B and Graph 2.8.B could show the data
Percentage
Respondents
for the public support for the malunggay noodle
Yes 83 77.57%
No 24 22.43% which is the product of the proposed business. As

Total 107 100% shown by the figures, 83 out of 107 store

respondent or 77.57% of them are willing to sell or carry out the malunggay noodles, while 24

out of 107 or 22.43% are not willing. With this data, we could assume that malunggay noodle
59

product have a favorable demand in the store establishments. Many of them would like to carry

out the product of the business; however, they put some condition that they will only take it if

there is a demand from the general public.

Suggestion and Comments from the store respondents

 Many of the store respondents commented that they would carry out the product if it has

already known and the demand is good enough.

 One of the store said that they only want noodles made in Korea.

 Some said that we must patronize locally made products.

 Many commented that the inventory turnover must be good, meaning the malunggay

noodle product must be easily sold to the market.

 Some also said that the product must be affordable to the general public.

Interpretation/Analysis

The interpretation of the gathered data gave a favorable account for the proposed

business which is the production of the malunggay noodles. The condition of the store

respondent about the demand can be met according to the data gathered from the general public.

It was revealed that the support of the general public to the product is favorable to it. However,

there are still other things that to be considered in order for the business to be said feasible such

as the financial and the technical aspect. The researchers hope that the two remaining aspect

would support the proposed business favorably.


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III. TECHNICAL ASPECT

A. PRODUCT/SERVICE

The primary goal of Nutri-M is to provide a new and healthier experience

of consuming noodles and as much as possible make it available in the different

stores here in Dumaguete City. This will be realized through the establishment of

Nutri-M malunggay noodle-production center. This will produce malunggay

noodles in small(60g) and large(150g) packs and distribute it to the different

stores within Dumaguete City.

B. STRUCTURE

There will be one structure that will be put for this business. It would be

the production center of malunggay noodles. Since the proponent has already an

unfinished building structure, the cost of the remaining works would just only

amount to about Php 216,599.04. This amount would cover 8% contingencies,

building and occupancy permits and fees, the materials and labor for wall finish

and tiling works, lighting, outlets, switches, wiring, piping, drainage, toilets,

faucets, sinks, cabinets, storage, drawers, ceiling, doors, windows, doorknobs,

lock sets, and painting jobs needed to put up the said structure.

C. PLANT LOCATION

The production center will be situated in Purok Santa Luisa, Barangay

Buñao, Dumaguete City, Negros Oriental. It will be favorable location for

business because it will be near where malunggay trees can be found. Malunggay
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is widely cultivated and can be found in the backyard of many homes in Buñao.

Other than its proximity to the malunggay leaves needed, the location is also good

for products to be sold locally.

D. PLANT LAYOUT

A systematic plant layout will be set up to eliminate bottlenecks in the site.

To describe, it is one wherein the machineries, equipment and materials are

arranged in such a way that the workers will not be far away from each other for

efficiency in the manufacturing process.

The finish products will be put in a storage room for safety, and protection

from dust and dirt that could come from other sections.

If a larger production center would be necessary in the future to cope up

with the demand of the market, it would not be that difficult and costly for

management since the production center itself is simply designed.


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Floorplan
63

E. UTILITIES

Electricity

The electric lines will be provided and installed by NORECO II. Any

financial obligations will be processed by the owner which includes membership

fee and minimum share subscription. Currently the rate of Php 9.7203 per kwh is

used for computing electricity expenses in the projected financial statements, and

is increased by the average inflation rate of 5% during the subsequent years.

Water

Water supply will be sourced out by DCWD (Dumaguete City Water

District). The water will be used primarily for cooking the noodles and for

washing the used utensils.

Telephone

Telephone will be provided and installed by PLDT. The telephone will be

used mainly for communication purposes specifically delivering etc.

Safety Services

The establishment will install a fire extinguisher to be used in case of fire.

Also the management will have a medical kit box. The production center will also

have a CCTV security camera instead of having a security guard.

F. PRODUCTION FLOW

Nutri-M shall open at 8AM to 5PM from Mondays to Saturdays. The

person in charge of opening the shop will be the manager together with the staff
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of the production center. There are three major phases or processes in the

production of malunggay noodles.

Phases of the Production Process

a. Preparing of raw materials

Prepare 5.33kg of malunggay flakes, 213 eggs (beaten), 0.32kg of iodized

salt, 53.25 kg of wheat flour and water for mixing.

b. Noodle – making processes

This phase includes grinding of malunggay leaves, mixing thoroughly all

the ingredients and kneading the dough, followed by sheeting and cutting

sheets into strips of noodles, and lastly drying it. This will be processed

through a customized noodle-making machine complete with all the

accessories needed for sheeting and cutting.

c. Packaging

Packaging is needed for enclosing and protecting the products for

distribution, storage, sale, and use. The malunggay noodles will be packed

manually. They are categorized according to weight (60g for small pack

and 150g for large pack). The noodles are placed in the designed wrapper

and sealed thereafter.

d. Distribution to Stores
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After the production of malunggay noodles, these packs are then to be

distributed to the different stores here in Dumaguete City. Distribution of

malunggay noodles shall take place every two weeks.

Production Policies

To ensure safety, security, proper sanitation and order in the production of

malunggay noodles, the following policies are to be implemented.

 Alcoholic beverage is strictly prohibited.

 Smoking is strictly prohibited in every area of the establishment.

 Wearing of proper attire with aprons, gloves, hairnet, and masks is

strictly encouraged.

 Sick workers will not be allowed to work.

 Cleanliness is to be observed always.

G. FACILITIES, MACHINES AND EQUIPMENT

Following facilities inside the production center:

 Preparation and Main Working Area

 Packaging Area

 Storage Area

The production center will be equipped with proper lightings and

ventilation, and will also have a 24-hour CCTV security camera.

Machineries, Equipment and other materials


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Machines and Useful


Price Quantity Description
Equipments Life
Noodle
Machine w/ 97,000.00 1 10 for mixing, sheeting, and cutting the ingredients.
accessories
Drying Oven 26,000.00 1 10 for drying the noodle
Sealer 12,000.00 1 10 for wrapping the noodle
Weighing
1,000.00 1 5 to weigh every ingredients before mixing
scale
Egg beater 1,808.00 1 5 for faster way of beating eggs
Aluminum
300 36 5 used to hold the noodle when it is ready for drying
trays
Aprons 250 3 2 to protect the worker from
that covers the front of the body to protect their
Pot holder 85 2 2
clothing from wear and tear
Disposable the direct contact of the ingredients from the hands of
gloves (12 30 1 the employee while kneading the flour. It will also
pairs/ pack) make the product safer

H. LABOR REQUIREMENT

Before the start of operations, the owner will hire three (3) workers to be

assigned in the noodle making process and packaging, and one (1) janitor for the

production center. The workers and the janitor will be working eight (8) hours

everyday from Monday to Saturday. They will report 8AM until 5PM with one

hour lunch break from 12NN to 1PM. The owner will also require the service one

(1) external bookkeeper from an agency who will report once every two weeks or

when called.

I. RAW MATERIALS AND SUPPLIES

The raw materials for these Malunggay noodles are the grind malunggay

leaves, wheat flour, water, eggs, and iodized salt. Since these raw materials are

abundant in Negros Oriental, Malunggay noodles production would be quite an

investment here.
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In the meantime, the supply of these materials here won’t be a problem for

it can be available in any grocery stores and supermarket and malunggay can be

widely cultivated and can be found in the backyard of many Filipino homes. Even

if the projected production during the 10th year of this operation will be

considered, raw material sources would still meet the demand for the elements

needed.

The current and prospective cost of raw materials is shown in… Terms for

such materials is also indicated in Exhibit …

Description and specifications of raw materials

 Malunggay leaves (Moringa Oleifera) - Each compound leaf contains 3-

9 very thin leaflets dispersed on a compound (3 times pinnate) stalk. The

“malunggay” leaves which contain phosphorus, calcium and iron are

commonly eaten as vegetable either cooked with chicken, pork, fish or

shrimp or eaten as fresh salad. 

Malunggay flakes – ground dried malunggay leaves, specially processed

for easy consumption.

 Wheat Flour - is a powder made from the grinding of wheat used for

human consumption. Contains proteins that interact with each other when

mixed with water, forming gluten. It is this elastic gluten framework

which stretches to contain the expanding leavening gases during rising.

The protein content of flour affects the strength of dough.


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 Water - is necessary in baked goods for hydrating protein, starch and

leavening agents. When hydration occurs, water is absorbed and the

chemical changes necessary for structure and texture development can

take place. Liquids contribute moistness to the texture and improve the

mouth feel of baked products. When water vaporizes in a batter or dough,

the snoodlesm expands the air cells, increasing the final volume of the

product.

 Eggs – consist of a protective eggshell, albumen (egg white), and vitellus

(egg yolk), contained within various thin membranes. They add flavor and

color, contribute to structure, incorporate air when beaten, provide liquid,

fat, and protein, and emulsify fat with liquid ingredients.

 Iodized salt - a colorless or white crystalline solid, chiefly sodium

chloride, used extensively in ground or granulated form. Salt is used to

enhance the flavors and sweetness of other ingredients in food.

Ingredients and Instruction

This measurement provided by the proponent can produce five (5) small packs of

malunggay noodles or two (2) large packs.

You will need:

 2 cups wheat flour

 1 cup malunggay leaves

 1 eggs

 1/4 teaspoon iodized salt


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Noodle - Making Procedures:

The noodle-maker processes the raw materials similar to the following

procedures:

 Mixing

Together with the wheat flour, eggs, and iodized salt, ground malunggay

leaves are mixed in a large bowl. The ingredients are mixed thoroughly

until made ready for sheeting.

 Kneading

The mixed ingredients will then be kneaded by the same machine and

made ready for sheeting.

 Sheeting

The dough is dived into two portions, each passing through a pair of

sheeting rolls to form a noodles dough sheet. The two sheets are passed

through again sheeting rolls to form a single sheet. Through this, the

ingredients are flattened in an even 1/8-inch thickness.

 Cutting

The flattened sheets are cut into strips using the noodle maker. It is cut

with the required size which is 1/8 inch in thickness and 12 inches in

length.

 Drying (Drying Oven)

Drying is the last stage of processing the malunggay noodles. The strips

will be dried in a drying oven until it is made ready for packaging.


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J. WASTE DISPOSAL

The product center shall submit to the current waste disposal system of

Brgy. Buñao, Dumaguete City: waste disposal at source. The trash will be segregated

through bins or big containers with specific labels as Compostable materials,

Recyclables, and Residual. Compostable materials, as identified by the waste disposal

program, include left-over food, meat and fish discards, vegetable trimmings, fruit

peelings and discards, wet paper, egg shells, crab shells, sea shells, table napkins, spent

ground coffee and coconut shells/husks. These will be used as natural fertilizers through

compost pits. Recyclable materials such as papers/cartons, aluminum cans, bottles/

glasses, plastic cups, spoons, forks, straws, dry and clean plastic bags, and plastic

bottles/containers will be sold to passing persons that buy bottles/ newspaper or will be

brought to the nearest recycling center. The residual wastes will be collected by the City

garbage truck and then be disposed according to the schedule given by Dumaguete

General Services Unit.

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