CHAPTER IV

MARKET FEASIBILITY

MARKET DESCRIPTION

Filipino bread, pandesal, with the traditional Mindanaoan dish pastil this

fusion embodies the essence of Filipino cuisine, offering a unique and flavorful

experience. The appeal of Pandesal Toasted Pastil lies in its convenient versatility,

serving as a quick and satisfying option for breakfast, lunch, or snacks. It celebrates

the Philippines' culinary heritage by seamlessly merging traditional recipes with

modern innovation, catering to a diverse customer base. The market potential for

Pandesal Toasted Pastil is promising, appealing to Filipino food enthusiasts,

adventurous eaters, snack lovers, and young professionals. Its unique selling points

include diverse filling options, a cultural connection to Filipino cuisine, and the

perfect blend of tradition and innovation. To capitalize on this market potential,

strategic product diversification, effective marketing and promotion, distribution

partnerships, tasting events, and appealing packaging will be instrumental in

establishing Pandesal Toasted Pastil as a beloved staple in Filipino cuisine.

MARKET SEGMENTATION

Toasted Pandesal Pastil is designed to cater to a diverse and inclusive

customer base, irrespective of age, geographic origin, gender, or religious affiliation.

The proponents believe in providing our innovative product to a broad spectrum of

individuals, including pandesal vendors. By doing so, we aim to effectively channel

our time and resources into comprehending their unique needs, desires, and

preferences. This approach allows us to craft a product that ensures the satisfaction of

our potential
buyers, making it a versatile and inclusive choice for everyone, including pandesal

vendors.

The technical study of the project comprises product description, product,

process, equipment and materials, plant location and plant layout. In this area, it

discusses on how the product “Toasted Pastil Pandesal” is produce, what ingredients

and equipment’s area needed, and where will the proponets going to put the said

business and its layout.

Target market

Pastil Pandesal want to distress the purchasing influenced most of the

Filipino's as it is offering an affordable price and addressing at all ages is the target

market of pastil pandesal professional or not,male or female and people different walk

of life. One of our target market is the household in Calasiao town because its

affordable price and the pastil pandesal be positioned as a satisfy on the go meal or

snack,providing a quick and flavorful option for those with a busy lifestyle. This

confirms a big scope market pastil pandesal we will cater

SURVEY RESULTS

Table 4.1 Profile of the respondents in terms of (a) gender

Gender Frequency Percentage

Female 29 58%
Male 21 42%
Total 50 100%
 As shown in the table above, the female and male respondents have equal

numbers to avoid biases in the process of the feasibility study, there are fifty (50)

respondents in total.

Table 4.2 Consumer’s of pandesal

Response Frequency Percentage

Yes 47 94%
No 3 6%
Total 50 100%

The result says that over 47 of the respondents said that they eat pandesal

while 3 of the respondents said that they don’t eat pandesal the results of the survey

implies that there’s a big fraction that were product will be viable to the target

consumers who have already tasted the toasted pastil pandesal. The results implied

that the toasted pandesal pastil has a chance of being vaiable to the market due to

resondent’s responses. It implies that 94% of the respondents are found eating

pandesal.

Table 4.3 How often the respondents eat pandesa

Consumption Frequency Percentage

Daily 29 58%
Every other day 11 22%
Once a week 6 12%
Twice a week 3 6%
Trice a week 1 2%
Total 50 100%

The result shows that 29 of the respondents said that they consume pandesal

daily and 11 said that they consume pandesal product every other day and 6 said they
consume pandesal product once a week and 4 respondents that they consume pandesal

product twice a week a 1 said that they consume pandesal product trice a week

Table 4.4 Varieties of Pandesal Consumed

Consumption Frequency Percentage

Traditional Pandesal 31 78%
Cheese Pandesal 6 12%
Ube Pandesal 5 10%
Pastil Pandesal 8 16%
Total 50 100%

The result shows that 31 of the respondents said that they consume/eat

traditional pandesal and 6 said that they consume cheese pandesal while 5 respondents

said that they consume/eat ube pandesal. And 8 respondents said they don't consume

pastil pandesal. The result implied that toasted pastil pandesal has a chance of being

viable to the market due to respondents’ responses. It implies that 78% percent of the

respondent love to consumed traditional pandesal which is always available in the

local market and 12% percent consumed cheese pandesal and 10% consume ube

pandesal and 16%. consume pastil pandesal.

Table 4.5 Willingness in consuming toasted pastil pandesal pandesal

Response Freaquency Percentage

Yes 48 96%
No 2 4%
Total 50 100%

The result shows that 48 of the respondents said that they are willing to buy a

new variant of pandesal which is toasted pastil pandesal and 2 of the respondents

show that are not willing to buy or consume toasted pastil pandesal .
 Original

Flavor

Response Frequency Percentage

Very Satisfactory 37 74%
Satisfied 12 24%
Nuetral 1 2%
Total 50 100%

Taste

Response Frequency Percentage

Very Satisfactory 29 58%
Satisfied 12 12%
Nuetral 9 18%
Total 50 100%

Aroma

Response Frequency Percentage

Very Satisfactory 31 62%
Satisfied 19 38%
Nuetral 0 0
Total 50 100%

Texture

Response Frequency Percentage

Very Satisfactory 39 78%
Satisfied 11 22%
Nuetral 10 20%
Total 50 100%

Cheese
Flavor

Response Frequency Percentage

Very Satisfactory 33 66%
Satisfied 6 12%
Nuetral 4 8%
Total 50 100%

Taste

Response Frequency Percentage

Very Satisfactory 36 72%
Satisfied 14 28%
Nuetral 0 0
Total 50 100%

Aroma

Response Frequency Percentage

Very Satisfactory 35 70%
Satisfied 23 26%
Nuetral 2 4%
Total 50 100%

Texture

Response Frequency Percentage

Very Satisfactory 23 46%
Satisfied 17 34%
Nuetral 10 20%
Total 50 100%

Sweet and Spicy

Flavor
 Response Frequency Percentage
Very Satisfactory 45 90%
Satisfied 5 10%
Nuetral 0 0%
Total 50 100%

Taste

Response Frequency Percentage

Very Satisfactory 47 94%
Satisfied 2 4%
Nuetral 1 2%
Total 50 100%

Aroma

Response Frequency Percentage

Very Satisfactory 37 74%
Satisfied 13 26%
Nuetral 0 0%
Total 50 100%

Texture

Response Frequency Percentage

Very Satisfactory 37 74%
Satisfied 12 24%
Nuetral 1 2%
Total 50 100%

Table 4.6 Preferred flavor of toasted pastil pandesal.

Flavors Frequency Percentage

Original Flavor 31 62%
Cheese 6 12%
Sweet and Spicy 13 26%
Total 50 100%
 The result shows that there are 31 of the respondents want to try the original

flavor for toasted pastil pandesal and 6 of the respondents want to try cheese flavor

and 13 of the respondents want to try sweet and spicy flavor. This gives the

proponents an idea on what flavor should produce most. It implies that 62% of the

respondents prefer the original flavors and 12% of the respondent prefer cheese

flavor. 26% of the respondents prefer sweet and spicy flavor.

Table 4.7 Price of original flavor per piece

Original Flavor Frequency Percentage

Php 6 39 78%
Php 8 7 14%
Php 10 4 8%
Total 50 100%

The results shows that 39 of the respondents are willing to pay 6 pesos for 1

pcs of toasted pastil pandesal while 7 of the respondents are willing to pay 8 pesos

and 4 are willing to pay 10 pesos of the original flavor .It implies that most of

respondents would pay 6 pessos for a every pcs of original flavor os toaste pastil

pandesal.

Table 4.8 Price of cheese flavor per piece

Cheese Flavor Frequency Percentage

Php 7 32 64%
Php 9 14 285
Php 10 4 8%
Total 50 100%
 The results shows that 32 of the respondents are willing to pay 7 pesos for 1

pcs of toasted pastil pandesal while 14 of the respondents are willing to pay 9 pesos

and 4 are willing to pay 10 pesos of the original flavor .It implies that most of

respondents would pay 7 pessos for a every pcs of original flavor os toaste pastil

pandesal

Table 4.9 Price of sweet and spicy flavor per piece

Sweet and Spicy Flavor Frequency Percentage

Php 8 37 74%
Php 10 6 12%
Php12 7 12%
Total 50 100%

The results shows that 37 of the respondents are willing to pay 8 pesos for 1

pcs of toasted pastil pandesal while 6 of the respondents are willing to pay 10 pesos

and 7 are willing to pay 12 pesos of the original flavor .It implies that most of

respondents would pay 8 pessos for a every pcs of original flavor os toaste pastil

pandesal.

DEMAND

Market Area

The market area for toasted pastil pandesal primarily involves the Brgy.Pogo

Nalsian, Calasiao Pangasinan with population of 6,906 as per 2020 census.This

carefully selected area serves as the loca lpoint for introducing and distibuting toasted

pastil pandesal to the local commumity.

Maintain Customer

The main customers of toasted pastil pandesal are the household and Calasiao

Town.

Annual Historical Demand

Annual historical demand refers to quality of a product or service that has

been requested or consumed by customers within a specific time frame of the year. It

represent the total amount of a particular item or service that has been sold, used or

demand by customer over the course of a year, based on past sales or usage data

survey was used to determine the annual historical demand of toasted pastil pandesal.

Table 4.10 Market Acceptabilty for Toasted Patil Pandesal

Response Frequency Percentage

Yes 48 94%

No 2 4%

Total 50 100%

Table 4.11 Total Populations

Year Total Population

2019 99,316
2020 100,471
2021 101,626
2022 102,795
2023 103,977

source:philatlas.com(based on the 2020 consensus with annual growth rate of 1.15%

 In order to get the annual historical demand, the population should be

multiplied by market acceptability which is obtained by the percentage of respondents

who are willing to by and consume toasted pastil pandesal (100%) multiplied to

minimum target of the population (40%)

Formula: Annual Historical Demand (AHD)= Total Population (TP) X Market

Acceptability (MA) X Maximum Target (MT)

Table 4.13 Annual Historical Demand

Year TP MA% MT% AHD%

2019 99,316 100% 40% 39,726
2020 100,471 100% 40% 40,188
2021 101,626 100% 40% 40,650
2022 102,795 100% 40% 41,118
2023 103,977 100% 40% 41,591

Projected Demand

Projected demand refers to an estimation or forecast of the future quantity of a

product or service that consumers are expected to purchase or use within a specified

period. Therefore, the formula to get the projected demand is:

Number of Increase = 2023 demand -2019 demand

Number of Year -1

Number of Increase = 41,591- 39,726

5-1

Number of Increase = 1865

 4

Number of Increase = 466

Table 4.14 Increase in Project Demand

Year Computation Annual Annual projected

Col.2+Col.3
2023 - - 41,591
2024 41,591 466 42,057
2025 42,057 466 42,523
2026 42,523 466 42,989
2027 42,989 466 43,455
2028 42,455 466 43,921

Supply and Competitors

Competitors Monthly Sales Annual Sales

Competitor A 30,000 360,000
Competitor B 28,000 288,000
Total 648,000
Estimated Annual Sales Increase by 2%

2022 Supply = 2023 Supply (2023 supply X Annual Income)

2022 Supply = 648,000-(648,000 x .02)

2022 Supply = 648,000 -12,960

2022 Supply = 635,040

Year No. Toasted Pastil Pandesal

2019 635,040
2020 642,741
2021 660,696
2022 673,910
2023 680,388
Project Supply

Projected demand refer to an estimation of the future quantity of a product or

service that consumers are expected to purchase or use within a specified period.

Therefore the formula to get the projected demand is:

Number of Increase = 2023 Supply - 2019 Supply

Number of Year -1

Number of Increase = 680,388- (680,388 x .02)

5-1

Number of Increase = 13,608

Number of Increase = 3,402

Table 4.17 Projected Supply

Year Computation Annual Increased Annual Projected

Supply col.2+col.3

2023 680,388

2024 680,388 3,402 683,790

2025 683,790 3,402 687,192

2026 687,192 3,402 690,594

2027 690,594 3,402 693,996

2028 693,996 3,402 697,398

 Demand - Supply Gap Analysis

Year Demand Supply Demand Perfect

Supply Unsatisfied Maket Share

Gap (d)=(c)/(a)x100

(c)=(a).(b) QTY(no. Percentage

of F

buyers)

(c) x (f)

2023 41,591 680,388 638,797 1,535.90 255,518.8 40%

2024 42,057 683,790 641,733 1,525.86 256,693.2 40%

2025 42,523 687,192 644,669 1,516.04 257,867.6 40%

2026 42,989 690,594 647,605 1,506.44 259,042 40%

2027 43,455 693,996 650,541 1,497.04 260,216.4 40%

2028 43,921 697,398 653,477 1,487.84 261,390.8 40%

COMPETITIVE POSITION

Achieving a competitive position in the pandesal and toasted pastil market

demands a strategic approach and a deep understanding of consumer dynamics. One

effective strategy is product differentiation. By offering unique flavors, variations, or

health-conscious options, businesses can stand out in a crowded market. For instance,

introducing gluten-free pandesal or innovative pastil fillings can attract a diverse

clientele. Quality is paramount. Consistency in taste, texture, and freshness is key to

building customer trust and loyalty. Ensuring top-notch ingredients and production

processes can set a brand apart. Marketing plays a significant role. Leveraging social

media, partnerships with local influencers, and creative advertising can enhance

visibility. Additionally, embracing e-commerce and food delivery platforms can

expand reach and convenience for consumers. Competitive pricing is vital, but

businesses should also emphasize value. Offering combo deals or loyalty programs

can attract and retain customers. Finally, staying attuned to market trends, such as

sustainability and health consciousness, and adapting products and practices

accordingly can strengthen a competitive position. In a market as diverse and dynamic

as pandesal and toasted pastil, innovation and customer-centricity are the keys to

success.

PRODUCT COSTING

Table 4.19 show the raw materials that is needed in producing Toasted Pastil
Pandesal.

Ingredients Quantity Cost per Cost Cost Cost Cost Cost

Unit per 1 per 2 per 3 per 4 per 5
year year year year year

Bread flour 1 kg 60/54 1.1 1.15 1.21 1.27 1.33

Salt 10g 25/500g 0.5 0.52 0.54 0.56 0.59

Butter 30g 55/100g 16.5 17.3 18.23 19.21 20.24
Oil 30g 100/500 6.6 6.9 7.27 7.66 8.07
Fresh milk 500ml 105/1 liter 52.5 55.3 58.28 61.42 64.73

Yeast 6g 10/10g 6 6.3 6.64 6.99 7.36

Egg 4 pcs 10 40 42.16 44.43 46.82 49.34
Chicken 1kg 160/1000g 160 168.64 177.49 187.07 197.17
 Onion 4 pcs 7 28 29.51 31.08 32.75 34.51
Garlic 2 cloves 7 14 14.75 15.54 16.37 17.25
Ginger 3 pcs 7 21 22.13 23.32 24.57 25.89

Pepper 10g 60/250g 24 25.29 26.65 28.08 29.59

Soy sauce 50ml 8/100ml 4 4.21 4.43 4.66 4.91
Sugar 30g 23/250g 2.76 2.90 3.05 3.21 3.38
Vinegar 50ml 8/100ml 4 4.21 4.43 4.66 4.91
Chili 50g 100/500g 10 10.54 11.10 11.69 12.32
Cheese 100g 55/100g 55 58 61.13 64.43 67.90
TOTAL 790 446 469.81 494.82 521.42 549.49

PERCEPTUAL FRAMEWORK

HIGH PRICE

LOW QUALITY HIGH QUALITY

LOW PRICE

The figure above illustrates the position of the product in the market

concerning price and quality. It allows consumers to easily identify competing

products. Pandesal Toasted Pastil, our new offering, is crafted from a delightful blend

of traditional pandesal and delectable pastil flavors. It offers exceptional quality at a

competitive price point.

As we introduce Pandesal Toasted Pastil to the market, we plan to position it

in the lower right quadrant of the figure, signifying a lower price point while

maintaining a commitment to high quality, which aligns with the upper right side of

the figure. Notably, our strongest competitor in this market are MARDO’s BAKERY,

which have established a strong presence over the years, thanks to their recognizable

brand names and long-standing presence.

PROPOSED MARKETING PROGRAM

Product

There are several pandesal varieties available at Pandesal pastil, including

cheese, Sweet and Spicy, and Original. Pandesal pastil is committed to developing a

pandesal and will be providing many taste options to its clients in Calasiao

Pangasinan with the aim of producing new flavor of pandesal product that will

compete to the existing traditional pandesal.

Price

Each Pastil toasted pandesal is priced according to the survey data acquired by

the Proponents. Survey questionnaires with a purchase option were circulated by the

supporters. Product's prices were promptly altered based on their soles in order to

balance out the pricing from the survey's questionnaire. The market price of the

primary ingredients will determine how much the Pandesal toasted pastil products
cost. Any change in the price of Pandesal's toasted pastil goods will be taken into

account when determining how much consumers can afford to spend on the item.

Promotion

The clients who have tried the new and great pandesal toast pastil from the

proponents' proposed business are satisfied, and it fits with the buy two get one

promotion approach to reduce their cost.

Place

The production and operation of the business will be located Pogo Nalsian

Calasiao Pangasinan. This is because the area is strategically located near the public

market in Calasiao and the place is also infront of the highway where there's a lot of

costumer.

Social Media

The proponents employed online marketing and promotional strategy to

successfully market the business. Online marketing is a quick, simple, and less

expensive way to advertise, market channels, promote, and build public relations. The

goal of social media marketing is to draw in new clients and tell the public about the

existence of the business and its product. The study will use Facebook pages and the

like to present the product to the general public and promote it through social media.
 Figure 4.1 Facebook Page

Flyers

Flyers are one-sheet advertisement that is presented by a business for

promoting their products or services. A flyer is exceptionally beneficial in gaining the

attention of the audience. It helps to explain a business's strong point, promote trade,

and express all products and services details.

Figure 4.2 Flyers

Tarpauline

The figure above shows the tarpaulin design of the business. This type of

promotional strategy is known as the traditional one that targets mostly the people out

of social media. The tarpaulin contains the location of the business, business contact

details, and the business social media handles. The tarpaulin size will be 2 by 4 feet.

Figure 4.3 Tarpauline

Mobile cart

The proponent made a mobile cart to provide a convenient and flexible way to

sell bakery products to costumers. This allows the bakery to reach a wider audience

by bringing products directly to different locations, such as events, markets or busy

street corners. The mobile cart can be filled with a variety o baked goods, allowing

costumers to make on the spot purchases. It also offers an opportunity for the bakery

to interact with costumers, answer their questions, and provide a personalized

shopping experience. Overall, a mobile cart improves a bakery’s visibility,

accessibility, and costumer engagement

 Figure 4.4 Mobile cart

PROJECTED SALES

Year 2024 PER PIECE UNIT SOLO SALES

Pastil original 6 66, 371 398, 226

Cheese 7 33, 186 232, 302
Sweet and spicy 8 33, 185 265, 480
TOTAL 132, 742 896, 008

PRICE STUDY

The pricing of each pandesal design is based from the survey questionnaire

gathered by the proponents. The researchers floated survey questionnaires with an

option of prices. Then the costing of product immediately adjusted based from its sole

so that it would compensate the pricing from the survey questionnaires

DISTRIBUTION

OWNER CONSUMER
 Figure 4.4 Distribution chart

The distribution process for pandesal and toasted pastil is a crucial element in

ensuring that these beloved Filipino snacks reach customers in a fresh and timely

manner. After production and packaging, the products are stored in controlled

environments to maintain their quality. Orders are received through various channels,

including online platforms and direct sales. The proponents picks and packs the

requested items, carefully handling them to preserve their integrity. For delivery,The

proponents rely on a dedicated fleet of vehicles with temperature-controlled

compartments, ensuring that pandesal and toasted pastil are delivered at the right

temperature to customers' homes and businesses. Additionally, the proponents

establish partnerships with local retailers and bakeries, allowing customers to

conveniently purchase our products at various locations. This well-structured

distribution process is essential to meet customer demand while upholding the

deliciousness and freshness of pandesal and toasted pastil.

SWOT ANALYSIS

STRENGTH WEAKNESS

 Uniqueness of the product, Toasted  Perishability

Pastil Pandesal  Limited Innovation
 Affordable price of the product  Market Education
 New flavor

OPPORTUNITY THREATS
 Health Trends  Competition
 Online Presence  Economic Factors
 Regulatory challenges

STRENGTH
 Toasted pastil pandesal offers a distinctive twist to the traditional pandesal by

incorporating a toasting element, setting it apart in the market.

 The affordability of a product is a Strength in a SWOT analysis because it can

attract a larger customer base, fostering increased sales and market share. This

advantage helps create a competitive edge, especially in price-sensitive markets,

and enhances overall value proposition for consumers.

 New flavors is a Strength in a SWOT analysis as it diversifies product offerings,

catering to varied consumer preferences. This innovation can attract a broader

audience, stimulate customer interest, and potentially lead to increased sales and

brand loyalty. It showcases adaptability and responsiveness to changing market

trends.

WEAKNESS

 Toasted pastil pandesal may have a shorter shelf life compared to regular

pandesal, potentially leading to inventory management challenges. Limited

Innovation: While toasting adds a new dimension, the overall product innovation

might be perceived as incremental, limiting its appeal to more adventurous

consumers.

 Introducing a new concept may require efforts to educate the market about the

benefits and unique qualities of toasted pastil pandesal.

OPPORTUNITY
 Introducing a new concept may require efforts to educate the market about the

benefits and unique qualities of toasted pastil pandesal.

 Leveraging online platforms for marketing and sales can tap into a wider

audience, especially as e-commerce continues to grow.

THREATS

 The bakery market is highly competitive, and other innovative products may

emerge, posing a threat to the uniqueness of toasted pastil pandesal.

 Economic downturns or fluctuations may impact consumer spending on specialty

items, affecting the demand for premium products like toasted pastil pandesal.

 Regulatory Challenges: Adhering to food safety and quality standards is crucial;

any lapses could result in reputational damage and legal issues.

FACTORS AFFECTING THE MARKET

The market for pandesal and toasted pastil is influenced by several key factors.

Consumer taste and preferences play a pivotal role, with demand varying based on

regional and cultural variations. Health and nutrition trends impact product

development, while price sensitivity affects affordability and market access. Effective

marketing strategies and competition among bakeries and restaurants are crucial in

attracting customers. Economic conditions, government regulations, and seasonal

events also influence market dynamics. Furthermore, global trends and fusion cuisine

can shape product innovation, and growing environmental concerns drive demand for

sustainable sourcing and eco-friendly packaging. Adapting to these factors is essential

for businesses in this market.