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Transcript of Feasibility Study
John Marie Fernandez
Gerwin Rugay BOYZ BanCookie Cream Shake Background of the study Name of the Business Enterprise Objective of the study Chapter 2
This chapter presents the target market, competitors, past demand and supply gap, projected demand and supply, product and projected selling price of the product.
BOYZ Bancookie Cream Shake is one of the tastier shake in the world and more fun than store bought, and with these recipes you can really say that it’s have a good taste.Delicious on its own and a perfect base for even yummier flavor.
BOYZ Bancookie Cream Shake has a creamer taste and delicious and as well as refreshing and easy to make. It produced mainly of bananas, cookies and cream milk which now a days is buoyant. The health benefits of BOYZ Bancookie Cream Shake will boast to consumer to buy. The said product belongs to the industry producing delights products.
Bananas are one of the healthier natural food sources in the world. They contain almost no fat; are very low in calories; and are high in vitamin B6; fiber and potassium.
The benefits of milk which is one of those ingredients in this product include good bone health, smooth skin, and strong immune system, prevention of illnesses such as hypertension, dental decay, dehydration, respiratory problems, obesity andosteoporosis. Milk is an ideal source of nutrients such vitamin A and B, calcium, carbohydrate, phosphorous, magnesium, protein, zinc, and riboflavin.
BOYZ Bancookie Cream Shake is the name of the business. We choose the name BOYZ because the 4 partners in the business are all boys. While Bancookie was taken from the main ingredients which is banana and cookies. We create this kind of name in our company because it’s easy to memorize or to familiarize by the costumer and it’s our way to attract them and it could be a trademark for quality products. BOYZ Bancookie Cream Shake is a partnership business built by partners John Marie Fernandez, GerwinRugay, Gideon Caldeo, and RochieHosaneLasangre. It is a store that would offer refreshing cream shake for the thirsty people. The target market of BOYZ Bancookie Cream Shake is people who adore delights product. Probably, these are the people who can afford to purchase the same after meal. Table 1
Competitors Analysis of BOYZ BanCookie Cream Shake The product of the business will be known as Bancookie Cream Shake which is made from Banana, Cookies, and Cream. It is affordable, yummier and tastier; it also helps the customer to prevent from different kinds of sickness since one of the ingredients of our product is a fruit. Table 5
Projected Selling Price Statement of the Problem These are several objectives of this study and these are stated below:
1.To offer a product that fulfills the thirst of target consumer.
2.To venture new cream shake that has been presented to be a leading delights product in the market.
3.To promote new innovation of cream shake.
4.To provide employment to people.
5.To gain income from proposed product. Definition of Terms Bananas – a long curved fruit that grows in clusters and has soft pulpy flesh and yellow skin when ripe.
Cookies – one of the main ingredients of BOYZ Bancookie Cream Shake, vanilla cream-filling sandwiched by scrumptious chocolate cookies and topped with thick Choco fudge.
Cream – is a dairy product that is composed of the higher-butterfat layer skimmed from the top of milk before homogenization. In un-homogenized milk, over time, the lighter fat rises to the top. Chapter 1
Introduction Target Market Competitors The business will be located in Bolton Street beside the University of Mindanao.Since the business will be located at Bolton Street, many people will be able to see it. The unidentified competitors are Black Pearl Fruit Shake, Thirsty Fresh Fruit Juice and Shakes Bar, and also Blue Yogo Yoghurt Milk Shakes. Table 2
Past Demand Source:
Demand: National Statistics Office
Supply: Department of Trade and Industry
The total past and demand of the Cream Shake industry in Davao City based on the date gathered from National Statistics Office (NSO) for the year 2009 Census of the population was 403,875. The target market is centrally located at the downtown area.
Both supply and demand has 3% increases every year. Thus, it also results into a 3% increase in supply and demand gap every year. Table 3
Project Demand and Supply The projected demand for Cream Shake for the year 2013 is expected to reach 441,325 based from the past demand for the year 2012 of 428,471 by multiplying 3% which is annual rate increase in demand and supply using the moving average.
Given the past demand and supply of the competitors, the projected demand and supply is based from the annual rate increase provided. The projected demand for 2015 is 468,202 and the projected supply is 271,270which implies that the market gap is equal to 49,233.
We have forecast a 3% yearly increase for our supply and demand taking the year 2010, 2011, and 2012as our base. We were able to identify the market share of 25% by surveying 30 people and identifying those who are willing to buy our product. Product Price Study This section discusses the trend of the price and the analysis of the future price. The business concentrates on the different prices of the three competitors. Its projected sales would be based on comparative market price. The projected price of the BOYZ Bancookie Cream Shake is 25 php. Table 4 Forecasted Increase: 3% Table 6
Projected Annual Sales Note: Projected 3% annual increase on projected price The researchers plan to market their product by joining Expo’s since their product is innovative. The will also maintain a website and Facebook account for their business to seen by people who goes online. Promotional Activities This section discusses the different technical aspects of the feasibility study. It shows the possible location of the BOYZ Bancookie Cream Shake. It represents the production flowchart of the BOYZ Bancookie Cream Shake. It includes the different pre-operational activities of the business. The production layout is also described in order to have a picture of the smooth operation of the business; it enlists and describes the different equipment that is needed to operate the business. Technical Aspect Projected Location Site Production Flowchart The production flowchart of the BOYZ Bancookie Cream Shake is shown below. It consists of five steps. The first step is to gather of all necessary raw materials needed in the mixing process. Production Flowchart Table 7 The next step is to prepare the tools and equipment’s that is needed in mixing the ingredients of BOYZ Bancookie Cream Shake. Then next is combining the following ingredients in the mixer. The last step is to put the finished product in the prescribed package and it is ready to serve to the customers. Table 8
Pre-operational Activity Proposed Layout for BOYZ Bancookie Cream Shake Terms and Conditions of Purchase Equipment The equipment for the business will be purchase in cash from the partner’s capital. Labor For the processing of our product BoyzBancookie Cream Shake, two (2) of the partners are assigned to the counter and the other two partner are in-charge in the mixer area. Management Aspect In attaining the business goals, it is very important to know and study the factors on how to run the business effectively. In this chapter, BOYZ Bancookie Cream Shake Company. Presented therein is the form of business, organizational structure, the man power requirements and the partner’s benefits. Forms of Business The BOYZ Bancookie Cream Shake will be operated by 4 persons as partners. BOYZ Bancookie Cream Shake was a partnership business accounted as limited firm and owned by the following persons: John Marie Fernandez, GerwinRugay, Gideon Caldeo, and RochieHosaneLasangre. The business started with a capital amounted to 100,000.00 having equal contributions from the owners. Organizational Structure The figure has shown the organizational structure of BOYZ Bancookie Cream Shake which composes an Operational Manager, Bookkeeper Personnel, Marketing Personnel, and Financial Analyst which all of them contributed to the company. Operational Manager
1 Sales Personnel
1 Organizational Structure The business offers to the partners’ for the benefit of each such as PhilHealth, SSS, and HDMF for them to have insurance in case of emergency.
Thus, the business would pay amounted Php. 1,400.00 for the monthly period which the total annual payment will be Php. 16, 800.00 per year. Partner's Benefits This chapter shows the financial plan of the business. Presented here are projected income statement, balance sheet, annual cash flow and the breakdown of expenses.
The projected income statement of the first year of sales has 1,160,175, cost of sales 463,815 with a gross income of 696,360. It has a total expense of 525,200 that resulted to the net income of 116,701.9.
The projected balance sheet is composing of three consecutive year from 2012 – 2015 for the year 1 it has a total of current assets of 289,751.9 and non-current assets of 17,772. That needs to reflect the same as the total liabilities and owner’s equity to have a balance used of income. The total liability and owner’s equity is 307,523.9
The projected cash flow for the first to the third year is P 216, 701.9, P 376,206.9, and P 577,004.1. On the other hand, the break-even point has a total variable cost of 96,365 and fixed cost of 448,450. It has break-even sales in peso of 543,815 and a margin safety in peso of 616,360. A margin of safety in percentage is 53%.
The contribution margin of variable cost is 1,064,810 and its contribution margin ratio is 93%. The total fixed contribution margin is 711,725 and its contribution ratiois 61%.