Feasibility Study

Feasibility StudyTechnological University of the PhilippinesAyala Blvd. Ermita Manila

by:Catherine B. CottrellMAT-THE2nd Sem 2014-2015In Partial Fulfillmentof the requirements for the DegreeMaster of Arts in Teaching to:Dr. Gremilda IglosoProfessorChapter I

Bread is surelya Spanish heritage. Wheat does not grow in the Philippines. The Spaniards brought in wheat flour as well asthe techniques of bread-making.Wheat was also important to theSpanish settlers who arrived in the Philippine during 16thcentury not just because they preferred bread to rice as a staple but most importantly due to their religious zeal. The Christian host (hostia) can only be made from the purest, finest wheat flour. Wheat flour was necessary if the Spaniards truly intended to convert and not just conquer.According to Felice Prudente-Sta. Maria, there were two kinds of pan de sal that once reigned in the Filipino bread basket. The traditional and more respected of the pair was known as thepan de suelo. During the Spanish times, dough was baked on oven floors (suelo) thereby making crusts very crisp and hard which to according to Nick Joaquin colegialasgot their gums toughened on theirsegundo almuerzoin the morning and, with hot chocolate, theirmeriendasin the afternoon.When the Americans came and governed the Philippines, they introduced the use of metal pans in baking bread which they considered more hygienic than cooking on mopped-up brick.IntroductionBackground of the Study

The bread making process originated in ancient times. The basis of the operation is to mix flour with other ingredients, for example, water, fat, salt and some source of aeration followed by baking. As long ago as 2,000 BC the Egyptians knew how to make fermented bread. The practice was to use a little old dough, or leaven, to "start" the new dough. These two dough were mixed together and allowed to ferment (rise) for some hours before baking. They made an astonishing 50 varieties of bread, paid wages with bread, and painted bread making scenes in their tombs.A variety of methods have since been developed in making leaven. The Baker's Patent required the fermentation of hops and scalded malt for at least two to three days.In the early 1900's it was discovered that traditional long fermentation times could be reduced from 18 to 3-4 hours by the use of very small amounts of certain chemicals, called oxidants, in bread or flour. Oxidants, when added to dough, not only speed up the process but also produce a superior loaf.

Statement of the ProblemThis feasibility study is intended to evaluate the feasibility of Bread with mixed flavors.Specifically, aims to evaluate and analyze the following areas:

The Technical aspects of the study Product description Product Process Equipment / Materials Plant location Plant lay-outThe Marketing Aspect of the Study General Business Condition Competitive Condition Target Market Demand Product Pricing Strategy Promotion Packaging

The Financing Aspect of the Study Capitalization Source of Funds Total Sales Total Expenses Return of Investment Ratio of AnalysisThe Management Aspect of the study Form of Ownership Structure Job Analysis Company PoliciesThe Socio-Economic Aspect of the study Contribution to the government Contribution to the societyConceptual Framework

The technical study of the project comprises product description, product process, equipment and material, plants location and plant layout. In this area, it discusses the varieties of bread product produce. The Marketing study covers the general business condition, competitive condition, target market, demand and supply, products, pricing strategy, promotion and packaging.The financial shows capitalization, source of funds, total sales, total expenses, return on investment and ration analysis. The management study shows the form of ownership, the structure of the business, job analysis and company analysis.The socio economic shows the contribution of the study to the government and society. This area proves that the business not only for profit purposes, but also for the improvement of the welfare of the people.

Framework of the Study

TechnicalSocio-EconomicPricing StrategyManagementForm of ownershipCompany AnalysisJob AnalysisStructureMarketingBusiness conditionProductsDemandCompetitive conditionPricing StrategyPricing StrategyFinancingSource of FundsIncome StatementTotal ExpensesTotal Sales Cash FlowReturn on InvestmentBalance SheetRatio AnalysisProduct DescriptionPlant locationEquipment/ MaterialsProduct ProcessPlant Lay-outContribution to the governmentContribution to the SocietyScope and Limitation of the Study

This study of the Bread Landia is restricted to Sta. Maria, Bulacan and will be based on management, marketing, technical, socio-economic and financial aspect of business.The product will be disseminated through direct selling and orders are also accepted from the customer within Sta. Maria Bulacan from those who are willing to purchase our products. Significance of the Study

The study gives the consumer a product which is affordable , delicious , nutritious and quality bread made of vegetables / fruits.This section provide a brief description on the various significance of the study given.Customer The customer will benefit the quality and nutritious bread with affordable price compare to the expensive brand. Researcher - Acquire knowledge , skills and profession to achieve the prospective objectives to have an profitable business.Society The significant of the society is to have a quality bread with a reasonable price that suited to their budget as well as to the nutritional needs.Definition of Terms

For a better comprehension on this feasibility study, the following definition of terms are provided:Balance Sheet one of the financial statements that show the total assets, total liabilities and equity of a business. Capitalization- the monetary contribution of each partner in a starting up a business. Demand refers to the quantity of the goods does a buyer is willing to buy at a given price. Form of Ownership- refers of a type business form of organization. Income Statement type of financial statement that shows the annual sales of the business with its expenses incurred for the whole year. Management the overall organization structure of a certain business. Marketing Strategy a series of marketing activities that an organization acquire customers. II. Methodology

This chapter describes and discusses the entire information necessary on this study. It shows the procedure data such as the description of products, design, locality.The outlook of the industry and the size of the industry, target market, market segmentation and presentation, in marketing and sales activities, detailed of the products and service description to apply to the business and the competition market.Research Design

The descriptive design and applied using surveying the community. The survey conducted by through giving the sample bread to the selected participant then rating the quality, taste, appearance, aroma and price of the items.The survey was aided using an interview guide questionnaires.Research Locale The survey area floated around the municipality of Sta. Maria Bulacan

RespondentsDue to the large number of potential customers, the servicer got at least 100 respondents from the identified locale. Respondents were identify immediately after they have shown interest buying breads.

RespondentsTotalParents / Teachers50Barangay Officials15Students35Total 100Sources and methods of collecting dataThe data was gathered through the primary resources. Schools, Barangay Hall, Neighbourhood and other municipality was giving an structure questionnaires about the bread.

Chapter III Technical Study

Bread is the product of baking a mixture of flour, water, salt, yeast and other ingredients. The basic process involves mixing of ingredients until the flour is converted into a stiff paste or dough, followed by baking the dough into a loaf.General Business condition

The General Terms and Conditions of Business shall apply to all current and future business relationships.In the context of the Terms and Conditions of Business, Contractors are natural or legal entities or legal private companies with whom a business relationship exists through the execution of commercial or independent professional activities.On placing their first order after receiving these Terms and Conditions of Business, the Customer thereby recognizes these Terms and Conditions as the binding rules governing the business relationship and shall refrain from applying their own conditions of sale.Any deviating, opposing or supplementary General Terms and Conditions of Business shall not, even if they become known, constitute part of this agreement unless their validity is expressly agreed in writing.

We confirm that the goods that we deliver shall comply with the relevant legal requirements with regard to their composition, quality, packaging, declaration and goods specification. In the event of faulty goods, we shall initially redeem the guarantee by choosing to offer either to rectify the fault or provide a replacement.If this supplementary performance fails, the Customer may choose to lower the payment amount (reduction) or to revoke the contract (withdrawal). However, in the event of a minor breach of contract, particularly in the event of minor faults, the Customer shall not have the right to withdraw.The Customer shall check that scope of the goods is correct immediately on receiving them. Any objections shall be made in writing immediately after they have been determined but within a maximum period of 2 days. The guarantee shall not apply if this period is not adhered to. The goods must be stored and handled correctly until they have been examined. Returns without prior discussion or without our consent cannot be accepted. Any complaints regarding quantity must be made immediately via the supplier, who must confirm them.

Guarantee

If, after a failed attempt to provide supplementary performance due to a defect of title or of quality, the Customer withdraws from the contract, they shall not have the right to claim for any damages incurred as a result of this defect. If, after a failed attempt to provide supplementary performance, the Customer chooses to claim for damages, the goods shall remain with the Customer. Damages shall be limited to the difference between the purchase price and the value of the faulty goods.Where we are not the manufacturer of the goods supplied, guarantee claims may only be made against us in line with the scope of the manufacturers liability to us.In general, the manufacturers product description shall be deemed the agreement regarding the properties of the goods. Public statements, prices or advertisements by the manufacturer shall not constitute the contractually agreed properties of the goods.The Customer shall not be given any guarantees in legal terms. This does not affect manufacturer guarantee

Production ProcessCarrot Cake Quick Bread

IngredientsFor the Bread C whole wheat flour C white whole wheat or all-purpose flour1 tsp baking powder tsp baking soda tsp salt1 tsp cinnamon tsp nutmeg tsp allspice C brown sugar1 egg tsp vanilla extract C unsweetened applesauce C butter, melted and cooled C milk1 C shredded carrots

For the Frosting4 oz cream cheese, softened2 tbsp butter, softened1 C confectioners sugarchopped pecans, optionalInstructionsPreheat oven to 350. Spray an 84 inch loaf pan with non-stick cooking spray.In a small bowl, whisk together flours, baking powder, baking soda, salt, cinnamon, nutmeg, allspice, and brown sugar.In a large bowl, whisk together egg, vanilla extract, unsweetened applesauce, butter, and milk. Add dry ingredients to wet ingredients and stir until just combined. Stir in shredded carrots.Pour batter into prepared loaf pan. Bake for 35-45 minutes or until toothpick inserted in the center comes out clean. Check bread at 30 minutes and if top is getting brown, cover with aluminum foil for the remainder of the baking time.Remove to a wire rack to cool.While bread is cooling, prepare frosting. Beat together cream cheese and butter until creamy. Beat in confectioners sugar until smooth.Spread frosting over cooled bread. Sprinkle with chopped pecans.

Workflow of the process I. Create a vegetable/ Fruit Bread Concept II. Gather the ingredients neededIII. Combine the dough mixture to the breadV. Bake the dough mixtureIV. Add the vegetables/ fruit bits in the doughVI. Wait until its doneVII. Prepare for the finishing touchesVIII. Once its done , add the garnishingIX. Display with presentable packagingProduct descriptionThe vegetables / fruit bread is made by baking carrot / apple / pineapple bits in the dough of flour and water added with flavors. The nutrients from the vegetables/fruits will be added to the breads.

Carrot pineapple bread

This bread is packed with lots of flavors, pineapple, banana, Carrots, raisins and nuts. Its super moist and good for you too!P 50.00 per loafSpinach Cheddar MuffinsP 50.00 / loaf

"These moist, savory muffins are a great way to work a healthy element into your family's brunch. The spinach flavor mellows as the muffins cool."Pumpkin-banana breadP50 loaf

Combination of pumpkin-banana to enhance the mouth-watering flavor of breadMaterials and Equipment

Adough mixeris an appliance used for household or industrial purposes. It is used for kneading large quantities ofdough.

Commercial Baking Oven

A commercial oven is a kitchen appliance used for heating and baking foods in a professional setting. Establishments such as restaurants, bakeries, and cafeterias often use commercial ovens. This is because professional ovens typically have the capacity and power to handle large amounts of different kinds of food in a timely manner.Dough Roller

Arollingpin is a cylindrical food preparation utensil used to shape and flattendough. Two styles ofrollingpins are found;rollerand rods.Rollertypes consists of a thick cylindricalrollerwith small handles at each end; rod typerollingpins are usually thin tapered batons.

Bread Rack

Abaker's rackis a type of furniture with shelves, typically made of wrought iron or some other metal. Traditionally the wire shelves served to help cool a baker'sgoods such as hot pies. The heat-conducting metal shelving allows for heat to be quickly transferred from the bowl to the shelf.

Plant locationThe store located at caypombo Market Street across to main road. Below is the proposed business location

Plant Lay-out

The plant lay-out technically designed to support the smooth process of the proposed vegetable/fruit bread flavor. The are display the complete bread making process to ensure the quality and preserve the nutrients of the ingredients.IV. Marketing StrategyThis chapter helps to know the marketing aspect of the business. The marketing aspects will cover the following: General Business condition, Tabulation of result, Target Market, Products, Promotion, Marketing Strategy, Pricing strategy and Packaging.

Description and outlook of the IndustryFruits and vegetables help keep teens healthy, prevent disease, and are low in fat and calories. People of all ages should eat seven to nine servings of fruits and vegetables every day. Ideally, adolescents should eat seven servings daily. Fruits and vegetables can be fresh, frozen, canned, or dried.TRENDSThe stronger performance of the Philippine economy helped to fuel the consumption of baked goods in 2013. It is expected that retail current value sales will jump by 6%, as Filipinos are starting to consume bread, pastries and cakes more frequently. This is especially noted amongst busy middle-income urban consumers, who prefer to have sandwiches instead of rice and other dishes in order to save time on food preparation. On the other hand, pastries and cakes benefited from the aggressive expansion of chained bakery fast food brands such as Red Ribbon and Goldilocks in key cities nationwide. By the end of 2013, sales of baked goods are expected to reach Ps34.8 billion.

Size of the IndustryCay Pombo(PSGC: 031423007) is one of the twenty-fourbarangayscomprising the municipality ofSanta Maria, Bulacan, in thePhilippines. It is bordered by Barangay Caysio on the south-west, and the south,Pulong Buhanginon the east,Mag-asawang Sapaon the north and BarangayinPandion the west.As of 2007 census, Cay Pombo has a population of 15,698 people with a density of 3,771.20 person per km2. The projected population of the barangay by 2010 is 21,226 with a growth rate of 10.65%.Marketing and Sales Activities The study recommend to implement the 6 months time sales activities proposal.The following should be follow:1st Week Displaying of AdvertisementsWindow Banner type advertisement Distribution of discount coupon through leaflets. Soft-Opening / Buy 3 free 1 for every loaf bread. 4th Week Buy 3 loaf bread any flavor get 50% discount on 4th loaf bread Closing time around 4 pm 7 pm weekdays3rd Month Buy 5 loaf of Nutri- Bread Free Nutri- Pineapple Juice.4th Month - Buy 50 pcs. Nutri-Pandesal avail nutri-peanut butter spread5th Month Buy 2 pcs Nutri- Spread , avail Free 5 pcs Nutri-buns 6th Month - Buy 3 loafs and 10 pcs Nutri pandesal can avail Free Barako coffee.

Packaging

Packaging plays in Nutri Bread are an important role as a medium in the marketing mix, in promotional campaigns, as pricing criterion , in defining new character of a new products, as a setter of trends and as an instrument to create a brand identity and shelf impact in all productsA eco-friendly packaging and promotes greener nation.V. Financial StudyFinancial Assumptions 1. Selling the price of the nutri bread are the following :

2. Sales demand increase by 10% per year3. Raw materials increase by 5 % per year4. Depreciation expenses is computed in a straight line basis with an estimated useful life of 3 years.5. 50% of the net income will be distributed after 3 years Nutri Bread VaritiesPrice ListCarrot pineapple bread50.00Spinach Cheddar Muffins50.00Pumpkin-banana bread50.00Initial capital requirementsThe partners are agreed to contribute an equal sharing of capital amount of P35,000 pesos each.

PartnersRatioInvested AmountCatherine Cottrell50%P70,000Michael Cottrell25%P35,000Chriselle Bandiola25%P35,000Total100%P140,000Cost and Expense ScheduleSchedule 1: Purchased of Raw MaterialsItemQuantity- per ProductionUnit Price AmountMonthlyYearlyFlour4 sacks57 sacksP 840.00P47, 880.00White Flour sack6 sacks350.002,100.00Yeast1 kilo18 kilos350.006,300Salt360 grams4320 grams1.004,320.00Butter360 grams4320 grams5.0021,600.00Oil150 grams1800 grams2.143,852.00Egg450 trays5400 tray67.50364,500.00Powdered Milk90 grams1080 grams10.0010,800.00Carrots/Pineapple15 kilos150 kilos50.007,500.00Peanut Butter60 jars720 jars40.0028,800.00Cacao powder600 packs7200 packs6.2545,000.00Condense Milk4 cans48 cans32.001,536.00Monggo 15 kilos150 kilos21.003,780.00Total1,774.892547,968Schedule 2: Rent ExpensesMonthlyAnnual CostP3,500P42,000Schedule 3: Salaries and WagesPosition`WagesCost per AnnualManagerP 5,000P60,000CashierP2,000P24,000BakerP3,500P42,000HelperP 1,500P18,000TotalP12,000P144,000Schedule 4 : Office SuppliesItemQuantityPriceAnnual CosRecord book2P80.00P160.00Official Receipt3020.00600.00Ball pen125.5066.00Bond paper250.00100.00Puncher 165.0065.00Stapler232.0064.00Staple wire107.0070.00Fastener130.0030.00TotalP1,155.00Schedule 5: PackagingItemQuantityPriceMonthlyAnnual CostPaper bag35P60.00P2,100.00P25,200.00Box305.00150.001,800.00TotalP27,000.00Schedule 6: Transportation CostItemCost per MonthAnnual CostDelivery ExpenseP4,800.00P57,600.00TotalP57,600.00Schedule 7: Promotional ExpensesCostNo. of MonthsAnnual CostFree tasteP1,500.00Introduction of the productsP1,500.00Flyers250.00123,000.00TotalP4,500.00Schedule 8: Office and Furniture FixturesItemQuantityPriceAmountEstimated DurationDeprecation ExpenseTable1P1,500.00P1,500.003P500.00Office chair2300.00600.003200.00Ceiling fan1750.00750.003250.00Cabinets11,000.001000.003333.33TotalP3,850.00P1,283.33Schedule 9 : EquipmentItemQuantityPrice AmountComputer1P15,000.00P15,000.00VI Management Study Forms of Ownership The type of business ownership will be a partnership: in which partners pool money , skills and other resources and share profit and loss in accordance with the terms of the partnership agreement. In the absence of the agreement, a partnership is assumed to exit where the participants in an enterprise agree to share the associated risks and rewards proportionately.Chapter VII: Socio Economic StudyThe chapter includes the socio-economic benefits if the proposed project. The proposed project aims to help our localities and farmers of the country and to give healthy lifestyle to the people. Nowadays it is important that small entrepreneurs should realize the worth innovating and starting a business that would largely contribute to the socio-economic development of the country.Contribution to the income and EmploymentThe main goal of a certain business is to have high income especially in the part of the owner. The business should generate pleasantly relationship between the manager and employees to attain the main goal of the business which is to have an income. At workers and employees in the business need income to support on their own needs and also for their services rendered in the business. Building up business is a great opportunity for an employed people to have jobs. It will also ne their opportunity of having another source of income. Tax contributionThis business is expected to give a great contribution to the government in the form of taxes. The tax payment from the business would help the localities as well as the economy in its future project especially for people that will benefit.Chapter VIII Conclusion and RecommendationRecommendation After bearing in the mind the significant factors in the study that we conducted such factors like the marketing, financial, technical and management and socio-economic study. It is therefore recommended that NUTRI-BREAD Bakery will be pursued and the business established at Caypombo Sta Maria Bulacan across to the main road.ConclusionBased on the research and study that conducted, I therefore conclude that business is feasible and viable in the market.

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