A FEASIBILITY STUDY OF ESTABLISHING FOOD BUSINESS: KANGKONG SNACKS

Located at Talisay st. Barangay Lagao General Santos City

Concept

Healthy living is now the trend. The future is unknown for we are battling against an invisible enemy,
everyone seems to be mindful of their food in take.The public now prefer foods that are organic and
nutritious. Since crackers and chips is one of the famous snack of all time for all ages the consumers tend
to search for a healthy go-to snack but the market does not offer a lot of them and sometimes this
organic snacks are much more expensive compared to those unhealthy chips are cracker. With that, the
researchers came up to create an alternative snack in the market that is more healthier and nutritious
crackers best for snacks anytime of the day and everyone can enjoy because it is 100%organic
ingredients and 100% no additives added using the healthy leaf vegetable, Kangkong. It will be a good
substitute to other chips because the consumers can eat it without worrying about their calorie intake.
Hence, it is thebest snack for people in a diet

As a new business, the researchers are trying to get the product the recognition it deserves and
to leave a good impression to the consumers. Creating a word mark product name with a green
background so that the customers can easily identify the product that is healthy and nutritious crackers.
The logo also features a simple font that will be written in black, green and yellow so the consumers can
read it easily and recognize it at first glance. Since the main goal of the logo is to make an impression to
the public, the researchers decided to make it as simple and as elegant as possible

Description of the product

The cracker will be made from kangkong leaves. It will have the same crunch as the common chips and
crackers available in the market but it will be the great option to because it has less calorie, less
saturated fat and low in cholesterol, also it is made with 100% organic ingredients and 100% no
additives added with (2) two flavors namely original flavor and sweet and spicy flavor.

Research Methodology

The researchers chosen a quantitative and qualitative method in the research paper. The
research will conduct an online questionnaire and gather data from respondents. The goal of this study
is to determine the customer’s profiles and preferences. This will also allow the researchers to critically
evaluate the overall validity and reliability of our proposal and to give insights about the interest and
preferences of the target market.
 LOCATION

The manufacturing and the process of making kangkong crackers will be located at Talisay st.
Barangay Lagao, General Santos City to lessen the rental fee and since the researchers are selling online,
it will not affect the target market near the location.

Market Feasibility

Technical Feasibility

Management Feasibility

Kangkong Snack is a partnership type of business. The business will have(number of members) or
employees, each one will fulfill their assigned positions.(pila ka buok inyong bet) will be the
manager/cashier, (#) will serve as the kitchen personnel, (#) will be assigned in packing the products and
(#) will be in charge of the deliveries. To ensure that the products and service is of high quality, we
 Chapter I
Prawn crackers are known as kropek (also spelled kropeck) in the Philippines, or by their English names
“prawn crackers” or “fish crackers”(especially in mass-produced commercial versions). They are
traditionally made from flour (usually tapioca flour), powdered prawns or fish, various spices, and water
(Dopico, 2019).

According to British chef Will Meyrick (2021), krupuk crackers that use sprawn appeared in
Malay Peninsula in the 16th century. Legend states that the leftover of crushed prawn heads from a
feast were used to make prawn crackers. Around the 19th century, kropek (crackers) was mentioned in
a Malay script written by Abdul Kadir Munsyi when he mentions Kuantan in Malay Peninsula. Prawn
crackers began to be favored in foreign countries since the colonial era of the Dutch East Indies around
19th to early 20th century and are considered as an important complement in the various Indonesian
culinary delights. The affinity to consume food with prawn crackers, was brought by Dutch colonials to
the Netherlands through their shared culinary legacy with Indonesia.

Ready-to-eat snack food commonly high in oil and flavored with salty flavorings with additives
added. In line with that, the researchers create an alternative unhealthy snack into a healthier and
nutritious snack. Kangkong cracker is healthier variety of snack that the researchers want to introduce.
The product itself would like to linger the interest of the buyers and the consumer to try the healthier
snack that can be offer in the market.

Kangkong is famous as viand, salad, and as side dish and for being rich in carotene, vitamins A,
iron, vitamin B and C. Kangkong is also beneficial to the people suffering from hypertension and diabetes
and the production of kangkong is increasing continually (Cinco, 2011). Magnesium and calcium are
extremely important for the health of bone and teeth. Kangkong contains 21% of your daily calcium and
18% of your daily magnesium per 100 grams. These are just a few of the vitamins and minerals that are
contained in kangkong.

In today’s time the consumers prefer to live a healthier lifestyle but failed to do so because they
find it hard to give up their old ways of living, especially In their food intake, they find it hard to give up
eating snacks like chips and crackers because they are widely circulating in the market with an
affordable price and it is easy to make. Young people today are growing fonder of fast food and junk
food and getting less familiar with vegetable that is why the researcher conducted as tudy that will help
the public grow fonder of healthy foods.

With that, the researcher caught the interest to proposed Kangkong Crackers as alternate in
other unhealthy crackers. Kangkong commonly known as water spinach. Kangkong is known for being a
great provider of vitamins and minerals. Kangkong is a great source for vitamin-A which is essential for
the health of skin, hair, and vision. Another vitamin that has a large presence in kangkong is Vitamin-C.
Vitamin-C is great for protecting the body from various diseases. Vitamin-C is also known to be great for
skin and hair repair. Apart from vitamins, kangkong is a leading source of vital minerals such as iron,
magnesium, and calcium.

The researcher’s main motivation for this study is the interest of common plant that can be used
uncommonly by the public. This research study aims to raise the awareness of vegetable Kangkong and
its contribution to the society in terms of food, particularly in snacks category.
 Not only they are delicious, but it is also nutritional and healthy. The goal of this study is to
provide the public of another alternative snack to better increase the consumption of vegetable
Kangkong by turning it into delicious and healthy snack

Research Objectives

The following questions will be answered after the completion of the research

1. What is the customer profile of the market target, such as population size and consumer
spending patterns?

2. Is there a demand and enough supply?

3. Who are the competitors of the proposed business and how are they doing?

4. Will the proposed store be able to gain profit with the proposed pricing, operation hours, the
estimated online store turnover rate and estimated controllable and uncontrollable expenses?

Research method

Chapter II

Market Study

This chapter provides quantitative information that will reflect the status of the market in the
area of the projected business. This includes the products offered, target market, competition, SWOT
analysis and the marketing strategies which includes the pricing and promotion strategy.

This section will offer an overview of the business as it relates to the marketing activities. The
information gathered and presented will serve as a basis for the formulation of strategies that will make
the proposed business. The study aims to raise the awareness of vegetable Kangkong and its
contribution to the society in terms of food, particularly in snacks category. Not only they are delicious,
but it is also nutritional and healthy. The goal of this study is to provide the public of another alternative
snack to better increase the consumption of vegetable Kangkong by turning it into delicious and healthy
snack

a. Analyze the market demand and supply of the business

b. Define the target customer of the business

 c. Determine the marketing strategies to be applied in the business

d. Determine the market feasibility of the business

Product Offered: Original Kangkong Crackers - consist of tapioca starch, kangkong leaves, garlic
powder, salt and pepper.

Sweet and Spicy Kangkong Crackers - consist of tapioca starch, kangkong leaves, garlic powder,
salt and pepper, honey and chili powder.

Marketing Analysis
Table 1. Total population

Location Population Year 2020

General Santos city 697,315

Total 697,315

General Santos City, formerly known as Dadiangas, is a coastal highly urbanized city in
the SOCCSKSARGEN region. Although administratively independent due to its distinction as
highly urbanized city, General Santos is commonly grouped with the province of South
Cotabato (philatlas.cm, 2022)

The city has a land area of 492.86 square kilometers or 190.29 square miles. Its
population as determined by the 2020 Census was 697,315. This represented 14.23% of the
total population of the SOCCSSKSARGEN region (philatlas.cm, 2022)

Table 2. Population by age group

Age Group Papulation group (2020)

14 and under 219,772
15 to 64 454,253
65 and over 23,290
Total 697,315
 According to the 2015 Census, the age group with the highest population in General
Santos is15 to 19, with 61,928 individuals. Conversely, the age group with the lowest
population is80 and over, with 2,738individuals.
Target Market
The target market of the proposed business Kangkong Crackers are the individuals who
are residing in the City of General Santos. Specifically, the ages from 5 to 65 years old who may
be a students, workers or unemployed who enjoys eating snacks. These are the potential
customers who will buy the offered products that the kangkong Crackers is rendering in the
market.

Market Trend
Analyzing the demand thoroughly will give the projection of the total number of
quantities of each product that we are going to produce daily, weekly, monthly, and annually.
Consumers are shifting towards natural and organic food products, which are tastier, healthier,
and more nutritious. This consumption trend is wide spread among the young adult population
across the globe.

Market segmentation
Market segmentation divides a market into plainly recognizable portion of purchasers
with comparative need. When recognized, those segments can be focused with a particular
advertising blend customized to each segment unique need, wanted and inspiration.
 GEOGRAPHIC

Location: Talisay st. Barangay Lagao

Region: 12City: General Santos City
Province: South Cotabato

Supply and Demand Analysis

According to Nielsen Consumer LLC, Snacks are more than delicious treats; they’re big
business. While Europe and North America make up the majority of worldwide snack sales
(US$167 billion and US$124 billion respectively), Southeast Asia’s developing nations are
contributing significantly to the category’s growth, posting 3.6% year-on-year growth compared
to 2%globally. There are varying and diverse reasons why consumers snack. For Filipino
respondents, snacking is viewed primarily as a source of nutrition (74%).Most Filipino turn to
snacks as a source of nutrition, according to the global survey conducted by Nielsen Philippines,
half of Filipino respondents say that it is very important that snacks include ingredients that are
organic and 40% prefer the uses local herbs (nielseniq.com, 2014).
The researchers try to evaluate of what really is on trend and more healthy food using
organic ingredients that can be a source of income here in General Santos City. The researchers
tend that all or most of the resident will patronize the local product an alternative healthy
snack that is offered. Not surprisingly, foods that have immune-boosting claims are popping up
everywhere. Even product that were mainstays for years are modifying their packaging to call
out potential immune-boosting ingredients or nutrients, such as vitamin A, c, and D, Protein
and others. Foods that naturally contain these types of ingredients without modification are
more appealing to consumers. Whey protein, for example, contains all nine essential amino
acids to enhance immune system function. Leveraging the benefits of whey protein in
formulations willim prove nutrition, flavor, texture and functionality. (Nielsen, 2021
Supplier
The raw materials to use are in local supermarket and public market. It isenough to
sustain the demand of the buyers.

 KCC
 SM
 GMALL
 GENERAL SANTOS PUBLIC MARKET

Competition

This section shows the competition of the each of the stated business in the market
particularly in General Santos City. In this sort of business, despite the fact that it
was not yet settled in the region, some are being worked here in the Philippines
particularly in Luzon and they are considered as the expected direct contenders. It
would be a great opportunity to set up one in General Santos City where there will
be no rival in region. The proposed business will be considered as monopoly. The
Kangkong snack has indirect competitors in General Santos City yet these
competitors offer different types of snack.

Direct competitors:
 Non existing

Indirect competitors:
 Potato corner
 Potato giant
 Fristag snack
 Supermarket kropek product
 Snackers Gensan

Production strategy
The Kangkong crackers is a unique product because it has a uncommon ingredient
that is not commonly used in every snack. It is very affordable snack because kangkong
is an affordable vegetable since the growth in the country is increasing. This will serve as
a competitive advantage of the business. The business offer two (2) variety of flavor,
 original kangkong crackers, and sweet and spicy kangkong crackers. The product is
mouthwatering because of its natural and added flavors, vibrant color and crunchy
texture.

Promotion Strategy

Sales promotion is important as it does not only helps to boost sales but it also helps
business to draw new customers while at the same time retaining the older ones.
Customer retention will be a major goal of the proposed business to be established in
the marketplace through developing strategies and programs that build a sustainable,
loyal and regular customer. Most business use some form of promotion to stimulate
action and become more profitable in the business industry. Promotional goals include
creating awareness, getting people to try products, providing information, retaining
loyal customers, increasing the use of product and identifying potential customers. The
business will use the following varieties of sales promotional strategies that an entity
can use to increase the sales.
1.Social media. The prospective business are advised to have a page in Facebook
since nowadays most of the target market are using social mediaplatforms.
2.Product giveaway and samples. For retaining customers, the business will offer
giveaway or samples to encourage them to buy bundle of the offeredproduct.
3.Fliers/Leaflets. At least 1000 pieces of fliers will be distributed on public places like
malls, park and school campuses within the locality. The fliers include information such
as: name of the product, location, telephone or cellphone number and email address. It
will also include the nutritional information of the said product.
4.Deliveries. In any transactions, the business will offer deliveries to reach thepotential
customers

Pricing strategy
 Purchase cost 30.00
Operating cost 2.00
Mark up 50% 18.00
Total 50.00

SWOT Analysis The method of SWOT analysis is to take the information from an environmental
analysis and separate it into internal (strength and weakness) and external issues (opportunities
and threats). It determines what may assist the firm in accomplishing its objectives and what
obstacles must be overcome. The Kangkong crackers is an organic snack that the researcher
proposed. It is an alternative snack that is more way healthier than those offered in the market.
The business is planning to open its first location in the city of General Santos

Strengths
Location
Uniqueness
Affordable to the market
Weaknessess
No reputation yet
Opportunities Changing customers taste and trends by introducing new snack Taking
advantage of trends
Threats
Competition: Business that sells similar food category and has loyal customerUnprepared for
opening numbers
 CHAPTER III
TECHNICAL STUDY
This chapter includes the operation process, food preparation, tool andequipment used
in production, and structure are all presented for the purpose of identifying the business
operation and vicinity map.
This study aims to:
To know the specification of raw materials
To determine the tools, supplies, machinery, and equipment.
To determine the business location
To show the product preparation of the business
To understand and analyze the production process

The Kangkong Cracker is 100% organic ingredients and 100% no additives added that everyone
can surely love it with (2) two flavors namely original flavor and sweet and spicy flavors

Figure 9. Kangkong Crackers Products

INGREDIENTS
*kangkong
*Tapioca starch or cornstarch
*Garlic powder
*Pepper
*Salt
PREPARATION
* Mix the dry ingredients (cornstarch, garlic
powder,pepper and salt).
* Add the dry ingredients to theblended kangkong. Mix it until itforms into thick batter
*Steam for about 3 to 5 minutes.Remove from heat and let itcool.
*Slice the kropek into smallpieces and continue to dryusing sunheat.Sweet and Spicy kangkong
Cracker
INGREDIENTS
*Kangkong
*Tapioca starch or cornstarch
*Garlic powder
*Pepper
*Salt
*Honey

PREPARATION
*Prepare the kangkong. In a boiling water blanch the kangkong then blend it.
*Mix the dry ingredients (cornstarch, garlic powder, pepper and salt). Add the chili powder and
honey.

Cooking Equipment and Tools

Steamer - Steamer a small kitchen appliance used to cook or prepare various foods with steam
heat by means of holding the food in a closed vessel reducing steam escape. This manner of
cooking is called steaming.
Blender -an electric machine used in the kitchen for breaking down foods or making smooth
liquid substances from
CASSEROLE -soft foods and liquids variety of a large, deep pan or bowl used for cooking a
variety of dishes in the oven; it is also a category of foods cooked in such a vessel.
Mixing bowl - is a deep bowl that is particularly well suited for mixing ingredients together in.
Measuring cup- is a kitchen utensil used primarily to measure the volume of liquid or bulk solid
cooking ingredients such as flour and sugar, especially for volumesfrom about 50 mL (2 fl oz)
upwards.
Measuring spoon -is a spoon used to measure an amount of an ingredient, either liquid or dry,
when cooking
Knife- is a tool or weapon with a cutting edge or blade, usually attached to a handle or hilt
Wire whisk- Is a cooking utensil which can be used to blend ingredients smooth or to
incorporate air into a mixture, in aprocess known as whisking or

Whipping
Packaging Process Kraft pouch paper is strong, extremely durable. It has a resistance to
punctures and tears. The porous, natural texture of Kraft paper makes it ideal for labeling and
hand stamping. Kraft Pouch that has the ability to stand on its own. The original stand up pouch
design was actually patented in 1968. However, it wasn’t until the patent expired did the stand-
up pouch revolution begin. The stand-up pouch design and construction have evolved over the
years to include innovative design features like the enclosable zipper, convenient tear notches
for easy opening, and some styles have a window for easy viewing. Today, the stand-up bag is
the go-to packaging choice for many well-known brands. Companies are using these airtight
bags for candy packaging, coffee packaging, tea packaging, pet packaging, beauty product
packaging, and more.(COPIOUSBAGS, 2022)
Step by step Guide to Packing Process
1. Place all the sliced and dried kropek in a big container and let is sit for 15minutes to cool
down.
2. Get the Kraft Pouch and open it, make sure it is clean.
3. Weigh an 80g sliced and dried kropek and put it inside the pouch.
4. Close the lid and sealed
.5. Put the sticker in the packaging for the indication