HAPTER I

EXECUTIVE SUMMARY

This chapter summarizes the whole research paper. It comprises of the details about the

business, general objectives of the business, the research methodology, the project summaries

of the succeeding chapters and definitions of terms.

Company Name

MMK Wrap n’ Roll! “MMK” which represents the first letter of each of the three main

ingredients stuffed inside the pastry such as Monggo, Malunggay, and Kalabasa, “Wrap” from

the meaning of Empanar from which the word Empanada was derived that basically means ‘to

wrap’ or ‘coat in bread’ and “Roll” which is used to describe the fillings inside the pastry or bread

to display an enthusiastic approach for the target market, combined together in order to show a

rather inviting name. Empanada has always been one of the famous Filipino delicacies, and this

business would display a modern creativity of it. The tagline “Mapapa-RAP ka sa saWRAP”

informs the customers to expect an innovative twist to the product.

2

Location

The location of a business is one of the most important variables in determining potential

success.

MMK Wrap n’ Roll! will be located at Polytechnic University of the Philippines, Anonas St.,

Sta. Mesa, Manila. The proponents chose this location it will be much convenient and budget-

friendly for the future customers in our Sintang Paaralan.

Description of the Business Logo

Figure 1

BUSINESS LOGO

MMK Wrap n’ Roll’s logo is designed to give unique identification and to reflect the

character and values of the business. The crown emphasizes the honoring of Original Pilipino

Music and the modern Balagtasan known as Fliptop. The empanada is connected to the crown

to represent that the business will be hit for every Filipino, together with the green background

that associated money and represents the color of “Monggo and Malungay”. The font of MMK

Empanada set the tone for the whole design to influence the customers. The design is readable

and versatile that makes the design simple to avoid confusions to the customers. The color of

the font represents the color of “Kalabasa” that will make people familiar to it and have a good

impression on it. The tagline “Mapapa-RAP ka sa saWRAP” aims to catch the attention of the

customer and make wonder what the meaning behind that tagline is. The Rap represents the

OPM and the WRAP represents the delicious empanada. The color of tagline is red because it

represents rap music, with lots of rhythm and some harmony, but little melody.

Company Background

MMK Empanada is a food business and which specializes in making and serving nutritious

yet delicious snack. The business will let the customers experienced empanada like never
before and remind them for love for Filipino treats/desserts. The stall will be resided in

Polytechnic University of the Philippines, Anonas St., Sta. Mesa, Manila. It is convenient to

prospective customers because the location is located inside the university. The company will

surely be able to comply to customers satisfactorily. In promoting the business, the company

distributed fliers and posted tarpaulin/posters to different locations inside the campus.

Industry Type

The business manufactures empanada. Manufacturing process are the steps through

which materials are transformed into final product.

The business belongs to food business/food industry.

Type of Organization

The proposed business type is sole proprietorship. This legal form of business had been

chosen to best fit the business. The sole proprietorship is a popular business form due to its

simplicity, ease of setup, and nominal cost. Sole Proprietorship is a business structure owned

by an individual who generally has full control and authority over the business. The sole

proprietor only needs to register his or her name with the Department of Trade and Industry

(DTI) and secure local licenses and permits to commence business operations.

General Objectives of the Business

1. To innovate Filipino delicacy by providing budget-friendly nutritious yet delicious

snack

2. To promote MMK Wrap n’ Roll as a substitute for unhealthy snacks

3. To establish good and long-term relationship with our customers and suppliers

4. To launch one well-known branch and to survive the start-up phase

5. To launch different branches on different locations.

Research Methodology

This section outline the designs and procedures undertaken in conducting the project

feasibility study. It presented the survey, survey questionnaire, sampling techniques, research,

mapping and searching from the internet books.

Survey

The proponents use the descriptive design and applied it through survey questionnaires.

The survey was conducted to random college and senior high students in PUP Sta. Mesa

Manila. The respondents were specifically chosen because the students in PUP main constantly

buy inside the campus. These survey are essential in obtaining accurate and valid data

necessary in determining other key information for the visibility of the study.

Survey questionnaire

The said survey is a checklist type so the respondents won’t have any hard time

answering such. Also this would be beneficial because they could serve more time in answering

types of question.

Mapping
FIGURE 2

VICINITY MAP

Search of internet, books and libraries

Meanwhile the proponents still used the secondary sources of data such as browsing the

internet, finding related books, articles and other feasibility studies that are relevant and

synonymous to the topic.

Research

The researchers opted to use quantitative research as it emphasizes objective

measurement and analyzing the data collected through surveys. In order to gather more

information, the researchers collected data and information in different website and articles

about the business.

Project Summary
 Market Study

In order to market every business, it must own marketing plans and strategies and have

all the possible costumers to be aware of the product. By using possible resources like social

medias, newspaper and other free advertising for the promotion of the product is a very helpful

tool in introducing the MMK Wrap n’ Roll to its target market. Posters and fliers will also be

posted and given to the public for promoting the product.

When a branch can sustain itself and with continuous development of product, there

goes the right time to open new branches on different location. To pick the perfect location, the

owners must first, learn all possible markets then, observing purchasing power of a citizen and

most importantly if it a good for a long-term run.

Technical Study

MMK Wrap n’ Roll will be focusing on making and serving tasty yet nutritious empanada.

The process is shown through a flowchart. On the other hand, the different supplies, equipment,

machineries and vehicles necessary for the business is listed with their corresponding action.

Management and Legal Study

The researchers chose sole proprietorship as a type of business ownership because it is

deemed the most suitable for this project. A centralized form of organization was also chosen

where there is a group of higher-ups that will lead the organization to better decisions. The

researchers created a code of ethics regarding the behavior of the management and the

employees in managing the business. The owner and employees are needed to have a

harmonious relationship for its operations to be smooth. Wages and benefit are given according

to their job descriptions. The management proposed a list of rules and regulations that must be

practiced inside and outside of the factory which is also based on the moral and conduct
practices in the Philippines. Each regular employee will receive benefits such as SSS

contribution, PhilHealth and PAG-IBIG, holiday pay and 13 th month pay in accordance to the

industry’s standard also from the labor code.

Financial Aspect

The owner will have a contributed capital amount of P 700,000. In this study, the source

of funds, balance sheet, income statement, the cost of goods sold and cost of sales will be

discussed. The said amount of capital are expectedly includes the acquisition of equipment and

other operating expenses that are needed in establishing the business. Also, the projected

Statement of Financial Position, Statement of Comprehensive Income, Statement of Owner’s

Equity and Statement of Cash Flows are presented.

Socio-Economic Study

MMK Wrap N ' Roll's primary goal is to reach the Filipinos, satisfy their cravings and

excites, and to experience empanada with another perspective. This business aims to recognize

our own Filipino pride in Filipino food, to support the government in providing for its people

through payment of taxes and compliance towards essential requirements to make the business

operational, and to give the society’s needs. Not only will it focus on profit maximization but also

in providing employment opportunities to people. This project also seeks to promote a healthy

lifestyle to Filipinos by supporting eating vegetable-rich food.

Definition of Terms

The meaning of certain technical words used for the preparation of this feasibility and

gaining understanding of food industry are given below:

 Centralized Organization. Defined as a hierarchy decision-making structure where all

decisions and processes are handled strictly at the top or the executive level.

Empanada. An empanada is a type of baked or fried pasty, consisting of pastry and

filling, in Latin American and Filipino cultures. 

Questionnaire. One of the survey instruments used by the proponents that were

prepared using English language and constructed in a multiple-choice format to gathered from

the respondents.

Sole Proprietorship. A sole proprietorship also referred to as a sole trader or a

proprietorship, is an unincorporated business that has just one owner who pays personal

income tax on profits earned from the business.

Target Market. A particular group of consumers at which a product service is aimed to

sell to students in Polytechnic University of the Philippines, Sta. Mesa.

 CHAPTER II

MARKET STUDY

INTRODUCTION

Marketing is a system of business activities designed to plan, price, promote and

distribute want-satisfying goods and services to present and potential customers. Marketing is

considered the most important area because it describes the market situation where the product

can be identified through the demand analysis. The marketing study is virtually the lifeblood of

every project feasibility study because it is a strategic way on how to cope up to the needs and

wants of the consumers, introduce the product to the market, and achieve customer’s loyalty

and patronage.

The marketing aspect is one of the factors in the success of the business. It shows the

relevant data needed in determining the viability of the proposed project. This chapter will

discuss the demand analysis, supply analysis, demand and supply gap analysis, pricing

strategies, marketing strategies, the strengths and weaknesses of the business as well as the

threats and potential opportunities, and the projected sales.

Objectives

The objectives of the proposed project are the following:

 To analyze the demand and supply of the proposed business in the market.

 To define the target market of the business.

 To determine the appropriate marketing program or strategies of the business.

PROSPECTIVE CUSTOMER

a. Prospective Customer
 MMK Wrap n’ Roll is located at Polytechnic University of the Philippines Anonas St. Sta.

Mesa Manila. MMK Wrap n’ Roll target market are the students and other employees of PUP

Manila. The basis for selecting students as part of the population in the study gives larger

exposure of the market. A certain weakness for this is that business will be weak if classes are

suspended during holidays and suspensions due to storms.

MARKET RESEARCH

A market study was conducted to know if demand for empanada, exists around PUP.

Survey Questionnaire was used in this study. The use of survey questionnaires serves as

written references about the actual information which are essential to the study. It is the most

instrument in collecting data. It consists of a set of questions about the needed information in

the study presented in written form.

Survey Questionnaire was by the proponents for the purpose of gathering relevant data.

The information that has been gathered through survey will now be tabulated to determine the

possible demand and supply for the continuous operation of the business. The data was treated

statistically using the frequency and percentage (%) to identify the highest and lowest ranks

among the following issues that has been answered by respondents.

In Percentage, it shows the relationship of the part to its whole. Researchers will be

using this transform proportion to a percent by multiplying by 100. The formula would be:

f
%= × 100
n

Where in:

% = Percentage

f = Frequency

n = Total number of respondents

 Also ranking is used in the study to identify the highest down to the lowest number of

frequency in some points in the market study where percentage is not applicable.

Demand Analysis

Knowing the demand for a specific product or service is substantial in determining the

output to be produced, capacity of the production facility, the materials required and the labor

needed in a given period of time.

A. Past Annual Demand

Past Demand was computed by getting the target population and multiplying it to the

market acceptability and to the frequency of the agreement. The researchers were able to

obtain the 2019 population of PUP Main in Sta. Mesa, Manila which is 19,927. The Slovin’s

formula is used to get the needed sample to be tested in the population. As a result, 392

students are needed but we are able to survey 400 students. The researcher presumed that the

population for the 2010-2014 has a growth of 0.03%. Market acceptability was obtained by

getting the percentage of respondents who are willing to buy Empanada. Frequency of

agreement refers to the number of times the customer buys the product annually.

Table 1

Past Annual Demand

Year Market Target F.O.A Annual

Acceptabiliy Population Demand
2015 73.75% 24,600 48.60 881,726
2016 73.75% 26,934 48.60 965,382
2017 73.75% 27,509 48.60 985,991
2018 73.75% 24,932 48.60 893,625
2019 73.75% 19,927 48.60 714,233

Market Acceptability shows the frequency distribution of respondents according to

whether they are willing to buy MMK Wrap N’ Roll.

Table 2
 Market Acceptability

Frequency of buying Frequency Weight Product

Everyday 13 274 3562
Every other day 38 137 5206
Once a week 103 39 4017
Once a month 141 11 1551
Total 295   14336
Frequency of Agreement 48.60
Choice Frequency Percentage
Yes 295 82.40%
No 63 17.59%
Total 358 100%

Frequency of Agreement refers to the number of times the customer is willing to buy the

MMK Wrap N’ Roll Empanada.

Table 3

Frequency of Agreement

Projected Annual Demand

Projected Annual Demand was obtained by multiplying the target population in a given

year to the market acceptability and to the frequency of agreement

Projected Annual Demand

Projected Annual Demand was obtained by multiplying the target population in a given

year to the market acceptability and to the frequency of agreement.

Table 4

Projected Annual Demand

Year Market Target F.O.A Annual demand

acceptability population
2020 73.75% 19,987 48.60 716,384
2021 73.75% 20,047 48.60 718,535
 20222 73.75% 20,107 48.60 720,685
2023 73.75% 20,167 48.60 722,836
2024 73.75% 20,228 48.60 725,022

B. SUPPLY ANALYSIS

Supply Analysis is used to determine the supply response to changing circumstances by

producers. The supply of the product was determined by obtaining the percentage of the target

population who already availed the product.

Past Annual Supply

Past Annual Supply was computed by multiplying Past Annual Supply to the Percentage

of Availing.

Table 5

Past Annual Supply

Year Past Annual Market acceptability Annual Supply

Demand
2015 881,726 89.50% 789,145
2016 965,382 89.50% 864,017
2017 985,991 89.50% 882,462
2018 893,625 89.50% 799,794
2019 714,233 89.50% 639,239

Percentage of availing shows the Frequency of Respondents according to whether they

have been buying Empanada.

Table 6

Percentage Availing

Choice Frequency Percentage

Yes 358 89.50%

No 42 10.50%
Total 400 100%
Projected Annual Supply

Projected Annual Supply was computed by multiplying the projected Annual Demand to

the Percentage of Availing.

Table 7

Projected Annual Supply

Year Projected Annual Market Annual

Demand Acceptability Supply
2020 716,384 89.50% 641,164
2021 718,535 89.50% 643,089
20222 720,685 89.50% 645,013
2023 722,836 89.50% 646,938
2024 725,022 89.50% 648,895

Demand-Supply Gap Analysis

Demand-supply gap was obtained by subtracting the Projected Annual Supply from the

Projected Annual Demand.

Table 8

Demand-Supply Gap Analysis

Year Demand Supply Gap Unsatisfied

Demand
2020 716,384 641,164 75,220 11%
2021 718,535 643,089 75,446 11%
20222 720,685 645,013 75,672 11%
2023 722,836 646,938 75,898 11%
2024 725,022 648,895 76,127 11%
Average 11%

Survey Analysis

Table 9

Distribution of Respondents According to their Willingness in Buying Empanadas

 Do you eat Frequency Percentage Rank
Empanadas?
Yes 358 89.5% 1
No 42 10.5% 2
Total 400

Figure 3

Distribution of Respondents According to

their Willingness to Buy Empanada

Yes
No

In this graph, we asked the respondents if they eat Empanada. The pie chart and the

table illustrated that 89.5% or 358 of the respondents answered yes and on the other hand,

10.5% or 42 of the respondents answered no.

 Table 10

Distribution of Respondents According to how they often they eat Empanadas

How often do you eat Empanadas Frequency Percentage Rank

Everyday 5 1.25% 5

Every other day 13 3.25% 4

Once a week 51 12.75% 2

Once a month 289 72.25% 1

None 42 10.50% 3

Total 400

Figure 4

Distribution of Respondents According to

how they often they eat Empanadas

Everyday
Everyother day
Once a Week
Once a Month
None

In this graph, we asked the respondents how often they eat Empanada. The pie chart

and the table shows that 72.25% of the respondents answered once a month, 12.75% of them
answered once a week, 3.25% of them answered every other day and 1.25% of them

answered every day.

Table 11

Distribution of Respondents to how much they spend for an Empanada

How much do you spend for a piece of Frequency Percentage Rank

empanada?
P 10.00 – P 19.00 192 48% 1

P 20.00 – P 29.00 109 27.25% 2

P 30.00 and above 57 14.25% 3

None 42 10.5% 4

Total 400

Figure 5

Distribution of Respondents to how much

they spend for an Empanada

P10.00 - P 19.00
P 20.00 - P 29.00
P 30.00 and above
None

In this graph, we asked the respondents how much they spend for a piece of Empanada.
 The pie chart and the table shows that 48% of the respondents answered P 10.00 – P

19.00, 27.25% of them answered P 20.00 – P 29.00, and 14.25% of them answered P 30.00.

Table 12

Distribution of Respondents to what variety of empanada they buy

What Variety of Empanada do you buy Frequency Percentage Rank

Chicken Empanada 66 16.50% 4

Ham & Cheese Empanada 101 25.25% 1
Tuna Empanada 71 17.75% 3
Beef Empanada 100 25% 2
Others 20 5% 5
None 42 10.50%
Total 400

Figure 6

Distribution of Respondents to what variety of

empanada they buy

Chicken Empanada
Ham & Cheese Empanada
Tuna Empanada
Beef Empanada
Others
None

In this graph, we asked the respondents what variety of Empanada they buy. The pie

chart and the table shows that 25.25% of the respondents choose Ham & Cheese, 25% of
them choose Beef, 17.75% of them choose Tuna, 16.50% of them chose Chicken Empanada

and 5% of them choose others.

Table 13

Distribution of Respondents according to their willingness to buy MMK (Munggo,

Malunggay, and Kalabasa) Empanada

Are you willing to buy MMK (munggo, Frequency Percentage Rank

Malunggay and Kalabasa) Empanada

Yes 295 73.75% 1

No 63 15.75% 2
None 42 10.50% 3
Total 400

Figure 7

Distribution of Respondents according to

their willingness to buy MMK (Munggo,
Malunggay, and Kalabasa) Empanada

Yes
No
None

In this graph, we asked the respondents if they are willing to buy MMK Empanada. The

pie chart and table shows that 82.4% of the respondents answered yes and 17.59% of them

answered no.
 Table 14

Distribution of Respondents according to when will they buy the product

When will you buy Frequency Rate Rank

the product?

For Breakfast 35 8.75% 2

For Lunch 14 3.50% 3
For Dinner 4 1% 4
For Snack 242 60.50% 1
None 105 26.25%
Total 258

Figure 8

Distribution of Respondents according to

when will they buy the product

For Breakfast
For Lunch
For Dinner
For Snack
None

In this graph, we asked the respondents when they would buy MMK Empanada.

The pie chart and the table shows that 60.50% of the respondents answered for snack,
8.75% of them answered for breakfast, 3.50% of them answered for lunch, 1% and of

them answered for dinner.

Table 15

Distribution of Respondents according to how often will they buy the product

How Often will you Frequency Percentage Rank

buy MMK

Empanada?

Everyday 12 3% 4

Every other day 39 9.75% 3

Once a Week 100 25% 2

Once a Month 144 36% 1

None 105 26.25%

Total 400

Figure 9

Distribution of Respondents according to

how often will they buy the product

Everyday
Every other day
Once a Week
Once a Month
None
 In this graph, we asked the respondents how often they will buy MMK Empanada. The

pie chart and the table shows that 36% of the respondents answered once a month, 25% of

them answered once a week, 9.75% of them answered every other day, 3% and of them

answered every day. –

Table 16

Distribution of Respondents according on how many pieces are they willing to buy

How many are you Frequency Percentage Rank

willing to buy MMK
Empanada
1-3 pieces 282 70.50% 1
4-6 pieces 12 3% 2
7-9 Pieces 1 0.25% 3
None 105 26.25%
Total 295

Figure 10

Distribution of Respondents according on

how many pieces are they willing to buy

1 - 3 pieces
4 - 6 pieces
7 - 9 pieces
None
 In this graph, we asked the respondents how many pieces they are willing to buy MMK

Empanada. The pie chart and the table shows that 70.50% of the respondents answered 1-3

pieces, 3% of them answered 4-6 pieces and 0.25% of them answered 7-9 pieces.

Table 17

Distribution of Respondents according to how much they are willing to spend a for a

piece of MMK Empanada

How much are you willing Frequency Rank Rank

to spend for a piece of
empanada?
P 10.00 – P 19.00 186 46.50% 1
P 20.00 – P29.00 92 23% 2
P 30.00 and above 17 4.25% 3
None 105 26.25%
Total 400
Figure 11

Distribution of Respondents according on

how much they are willing to spend a for a
piece of MMK Empanada
P 10.00 -P 19.00
P 20.00 - P 29.00
P 30.00 and above
None

In this graph, we asked the respondents how much they are willing to spend for a piece

of MMK Empanada. The pie chart and the table shows that 63.05% of the respondents
answered P 10.00 – P 19.00, 31.19% of them answered P 20.00 – P 29.00 and 5.76% of them

answered P30.00.

MARKETING STRATEGY – paraphrase co

Product Strategy

The product is innovatively named within its own flavor that will leave a remarkable

Filipino touch to the customer. Its prominent characteristics are classified into baled sort or

sometimes flaky fried within the usual flavor that will satisfy the Filipino taste of the customers

and may open business opportunities to others in the future. The finished product are perfectly

consumed by individual customers as for their own consumption or for sharing. In the future,

the product will be available for distribution or other business purposes.

Physical Appearance

The way the market sees the product design reflects on the unique features the product

itself has to offer. The team decided to apply a modern style of design with the use of

innovated packaging and innovated look of the product itself that will surely catch the market.

The purpose for this is to attract more possible consumers and to raise product

recognition. Inviting warm, cozy colors are used to bring out an eye-catching look to the

packaging of the product. While the product itself is projected to look as the usual size of a

normal empanada, it has a texture that the consumer could visualized as to something similar

with stuffed breads.

Pricing Strategy

MMK Wrap n’ Roll will use the cost – plus pricing strategy in order to set the price of the

dressed chicken. Our product is competitively priced and is affordable for the consumers.
 Promotion

For a newly operating business, it needs aggressive marketing strategies and

promotional activities to introduce its products to the market. The business will use

Internet/Online Marketing to advertise the product since we are now living in the modern world.

It is the easiest and cost-effective way to reach a huge number of potential customers. Through

the use of social media like Facebook, it will help create the awareness of the product. The

promotional strategies that the business will use are through word of mouth and distribution of

flyers to inform its customers about the product. By means of Internet/Online Marketing, the

business will be able to promote the product directly to its customersIt decided to use these kind

of marketing strategies to generate sales.

SWOT Analysis

Strengths

 The business provides a high quality empanadas at an affordable price.

 The location of the business is accessible to meet our target market.

 The business has well-trained employees.

Weakness

 The business is new; hence, it will take us time to attract huge number of customers.

 The possibility of loss may occur in the first two years of business operation.

Opportunities

 There is a potential to attract more customers.

 Less competition in the market place.

Threats
 Indirect Competitors