CHAPTER 1

The Problem and Its Setting

The study is all about the soap that is made with the mixture of chili
and milk. People used soap not only to get themselves clean but also to
have the purpose of using soap for their dry skin, sensitive skin, and for
the skin of the face that has acne or pimple.
Chili peppers originated from the Americas. After the Columbian
Exchange, many cultivars of chili pepper spread across the world, used in
both food and medicine. Chilies were brought to Asia by Portuguese
navigators during the 16th century.The substances that give chili peppers
their intensity when ingested or applied topically are capsaicin and several
related chemicals, collectively called capsaicinoids.
The product contains Milk one of the healthiest food available and it
is also a wonderful beauty aid. Milk plays an important role in overall
nutrition and health. Proponents choose coconut milk with chili because
coconut milk contains vitamins A and D which helps the skin to stay soft,
supple, radiant, and glowing. The proponents choose milk to moisturize
the skin and at the same time ease the burning sensation that consumers
might feel because of the chili that the soap contains.
People perhaps wonder how capsaicin in chili peppers may work
for acne breakouts. Well, it is as simple as using it in meals. These chili
peppers may be added in order to spice up your meals. Additionally,
people may concoct an acne treatment that may apply on skin to treat
acne.

The capsaicin is said to help eliminate acne. In general, people

know that chili may cause burning sensation when it is applied on skin.
Milk is added in the soap to kill the burning sensation of chili in the skin
and to moisturize the skin as well.
Statement of the Problem
The study seeks to determine the viability of the production and
distribution of chili and milk soap in Malolos, Bulacan.
Specifically, the study seeks to determine the following questions
with regard to the five aspects.
The Marketing Aspect
1. Who will be the target market of the proposed business?
2. What is the demand and supply situation of the proposed business in
Malolos,Bulacan?
3. What marketing strategies would be used to ensure its competitiveness in
terms of product, price, place and promotion?
4. What are the channels of distribution expected in order to distribute the
product in the market?
The Management Aspect
1. How many employees are needed in the proposed business?
2. What are the qualifications, duties and responsibilities of the employees?
3. What activities should be accomplished before the start of the business
operation?
4. What compensation package would the proponents give to employees?

5. What form of business is needed in order to have an effective and

successful operation?
6. What would be the organizational structure of the business?
The Technical Aspect
1. What kinds of equipment and machinery needed for the proposed
business?
2. What are the procedures in making the product?
3. What are the raw materials to be used?
4. What are the proper waste disposal methods applicable to the business?
5. What would be the production schedule?
6. Where would be the most appropriate plant site for the proposed
business?
The Financial Aspect
1. Where will be the sources of funds?
2. How much is the capitalization needed in putting up the proposed
business?
3. How much is the expected rate of return of investment?
4. How much are the expected expenses?
The Socio-Economic Aspect
1. How will the proposed business help the problem of unemployment?
2. What would be the contribution of the proposed business in social and
economic status of the country?
Objectives of the Study

The main objective of the study is to determine the success probability

of production and distribution of soap made from chili and milk in Malolos,
Bulacan.
The following are the specific objectives of the study that aims to:
The Marketing Aspect
1. Identify the possible target market.
2. Know the accurate demand and supply situation of the proposed
business.
3. Determine the most efficient marketing strategies that will be used in
terms of product, price, place, and promotion.
4. Identify the most effective channels of distribution.
The Management Aspect
1. Know the number of employees that are needed in the proposed
business, their duties and responsibilities, and qualifications.
2. Determine the activities in the firm that should be accomplished before the
start of the business operation.
3. Formulate the compensation package to be given to employees.
4. Specify the form of business that should be adopted.
5. Discuss the organizational structure of the business.
The Technical Aspect
1. Identify the kind of machinery needed for the proposed business.
2. Discuss the procedures in making the product.
3. Determine the raw materials to be used.

4. Know the proper waste disposal method applicable to the business.

5. Discuss the production schedule.
6. Describe the most appropriate plant site for the proposed business.
The Financial Aspect
1. Find out the sources of funds.
2. Determine the needed capital in establishing the business.
3. Know the expected rate of return on investment.
4. Identify the expected expense of the business.
The Socio-Economic Aspect
1. To describe the contribution of the proposed business in social and
economic status of the country.
2. The benefits that will get in the proposed business.
Significance of the Study
The study will give students, researchers, instructors, and
business-minded persons a reference material, to clear up ideas on how a
paper is done.
The paper will give the students and researchers a learning pattern
to enhance the students knowledge and entrepreneurial skill as well.
For instructors, the paper will provide sample in discussing on how
to conduct a research study.
The study will help business-minded persons for their upcoming
business in the future. The paper will also help in terms of furthering the

business-minded persons knowledge with regard to researching on

business ventures.
Scope and Delimitation of the Study
This study on the production and distribution of soap made from
chili and milk in Malolos, Bulacan focused on the production and
distribution of the proposed product and the target market as well.
The study covers the five (5) major aspects of the feasibility study:
The Marketing Aspect tackles the demand and supply conditions of
the product, the target market, and marketing strategies to be adopted.
The Management Aspect includes the form of business,
organizational chart, and manpower requirements.
The Technical Aspect discusses the raw materials of the product,
the production process, the facilities, machinery and equipment to be
used, and the plant location and layout.
The Financial Aspect identifies the statement of assumptions, the
total project capital investment, sources of capital, the projected financial
statements and financial analysis.
The Socio-Economic Aspect determines the social implications, and
economic implications.
The study also has its own delimitation in reliability of the data in
terms of assurance that data are accurate and if the paper will provide the
efficient information for the readers.
One of the constraints that the proponents faced is budgetary
constraint, because the proponents only have small amount of budget that
will be used for the instruments, raw materials, and other materials that
will be used in the proposed business. And the other constraint is time

which has a big effect in the preparation and formulation of the paper
because of the schedule of class of the proponent.
Definition of Terms
The following are the technical terms that are used in the study:
Bursitis. It is the inflammation of one or more bursae (small sacs) of
synovial fluid in the body.
Capsaicin. It is an active component of chili peppers, which plants are
belonging to the genus Capsicum. It is an irritant for mammals, including
humans, and produces a sensation of burning in any tissue with which it
comes into contact.
Capsaicinoids. It refers to the name given to the class of compounds
found present in members of the capsicum family of plants.
Casein. is the name for a family of related phosphoproteins.
Chili. This refers to the spicy fruit of plants in the genus Capsicum;
sometimes spelled "chilli" in the UK and "chile" in the southwestern US.
Chiltepin.
Coconut Milk. It is the liquid that comes from the grated meat of a
brown coconut.
Colostrum.

This is the form of milk produced by the mammary

glands of mammals (including humans) in late pregnancy. Most species

will generate colostrum just prior to giving birth.
Concoct. It means to make a food or drink by mixing different things
together.

Cryptoxanthin. It means a natural carotenoid pigment.

Cultivar. Its a plant or grouping of plants selected for desirable
characteristics that can be maintained by propagation. Most cultivars have
arisen in cultivation but a few are special selections from the wild.
Discoid. This means having the form of a disk; flat and circular.
Ingested. This is the consumption of a substance by an organism. In
animals, it normally is accomplished by taking in the substance through
the mouth into the gastrointestinal tract, such as through eating or
drinking.
Neuropathy. It is not a single disease - instead, it is a complication
found in a number of different underlying medical conditions.
Nitrosamine. This are chemical compounds of the chemical structure
R1N(-R2)-N=O, most of which are carcinogenic.
Oleoresin. a preparation consisting essentially of oil holding resin in
solution.
Proprioception. This means "one's own", "individual" and perception,
is the sense of the relative position of neighbouring parts of the body and
strength of effort being employed in movement.
Shingles. is a viral infection that causes a painful rash.
Soap. This is a salt of a fatty acid.
Triclosan. It is an antibacterial and antifungal agent found in consumer
products, including soaps, detergents, toys and surgical cleaning
treatments.

Review of Related Literature and Studies

The following are the studies and literature that are relevant to the
study.
Foreign Literature
According to soaphistory.net in their article "Soap inventors and
Origin", soap existed for more than six thousand years and was first
produced by Babylonians, Mesopotamians, Egyptians, as well as the
ancient Greeks and Romans. All of them made soap by mixing fat, oils
and salts. Soap wasn't made and used for bathing and personal hygiene
but was rather produced for cleaning cooking utensils or goods or was
used for medicine purposes.
The first recorded evidence of the manufacture of soap-like
materials dates back to around 2800 BC in Ancient Babylon. Babylonians
discovered the basic method of making soap (fats boiled with ashes and
water). Soap was used mostly in the textile industry.
In 1550 BC in Egypt, The Ebers papyrus describe how animal and
vegetable oils were mixed with alkaline salts to produce a soap-like
substance and mention that soap was used for threating sores, skin
diseases as well as washing.
Also, Ancient Germans and the Gauls mixed ashes with animal fat
to produce soap, and they used it to decorate their hair. Arabic chemists
were the first one to produce soaps made from vegetable oils (such as
olive oil), aromatic oils (such as thyme oil) and lye. From the beginning of

10

the 7th century, soap was produced in Nablus, Kufa and Basra. They
made perfumed and colored soap, some of the soaps were liquid and
others were solid. They also made special soap for shaving.
By 1200 AD, Marseilles, France and Savona, Italy became soap
making centers. In the 8th century, soap making was well-known in Italy
and Spain where soap was made with goat fat and Beech tree ashes.
During the same period, the French started using olive oil to produce
soap. Eventually, fragrances were introduced and soaps for bathing,
shaving, shampooing and laundry began to be made.
From the 16th century finer soaps were produced in Europe using
vegetable oils (such as olive oil) as opposed to animal fats. Many of these
soaps are still manufactured, both industrially and by small scale soap
makers.
Soap making method unchanged for many years, although coconut
oil and Rosin were added to the list of raw materials. When soap were first
made in America the methods employed were patterned after those being
used in England at that time. The term soap appears to have been derived
from the Latin word "Sapo" and in French it was said to be "Savon" which
comes from the City of Savora.
According to wikipedia.net, chili peppers have been a part of the
human diet in the Americas since at least 7500 BC and perhaps earlier.
There is archaeological evidence at sites located in southwestern Ecuador
that chili peppers were already well domesticated more than 6000 years

11

ago, and is one of the first cultivated crops in the Americas that is selfpollinating.
Chili peppers are thought to have been domesticated at least five
times by prehistoric peoples in different parts of South and North America,
from Peru in the south to Mexico in the north and parts of Colorado and
New Mexico (Ancient Pueblo Peoples).
Christopher Columbus was one of the first Europeans to encounter
them (in the Caribbean), and called them "peppers" because of their
similarity in taste (though not in appearance) with the Old World peppers
of the Piper genus.
Chilies were cultivated around the globe after Columbus' time.
Diego lvarezChanca, a physician on Columbus' second voyage to the
West Indies (1493), brought the first chili peppers to Spain, and first wrote
about their medicinal (1494).
From Mexico, at the time the Spanish colony that controlled
commerce with Asia, chili peppers spread rapidly into the Philippines and
then to India, China, Korea, and Japan with the aid of European sailors.
The new spice was quickly incorporated into the local cuisines.
In the article "The natural history of Chili Pepper" by Jan Timbrook,
Wild chiles like the chiltepin (or chilepiquin) are dispersed by birds.
Humans helped to spread these plants from their South American homes
into Central America, Mexico, and the Caribbean. Chile peppers joined
corn, beans, and squash to form the Big Four staple crops in

12

Mesoamerica. Native Americans and, later, people around the world,

developed a great number of varieties from the original three principal
species. Now many cultivated peppers, including bells and jalapeos,
require human involvement for propagation.
Zigang Dong in his article "Two Faces of Capsaicin", Chili pepper is
commonly used in cuisines but it is also intended in medical purposes.
Chili pepper has a substance called capsaicin. Capsaicin is considered a
safe and effective topical analgesic agent in the management of arthritis
pain, herpes zoster-related pain, diabetic neuropathy, mastectomy pain,
and headaches. However, a study published in 2010 has linked capsaicin
to skin cancer.
According to the site http://yaleglobal.yale.edu, India is the largest
consumer and exporter of chili peppers today. Exporting more than 51,000
tons of chili peppers annually, India also exports chili oleoresin, a
combination of oil and resin; powder; and crushed chili peppers. In all,
India produces close to 8 million tons of dry chili pepper a year
This literature is related to the present study because it talks about
where the soap came from. It discussed how the soap is made by ancient
people and where this people used it. Soap has many use, it is used in
cleaning dish, in laundries, and in bodies of animal and humans. But soap
is not only for cleaning but also for treating diseases and to prevent it for
coming back.

13

Chili usually used as ingredient in food. But today, chili can be used
as treating ailments and other conditions. It can be used as ointment, pain
reliever, weight loss, and acne prevention.
In the ancient times, people used ashes and fat oil to produce soap
but now people used caustic soda and coconut oil to produce soap plus
fragrance oil to add fragrance on soap. Our soap contains chili and
coconut milk that helps eliminate pimples and dead skin cells and to
moisturize the skin.
Local Literature
Chili pepper is an erect, branched and half-woody plant, growing to
a height of 0.8 to 1.5 meters. Leaves are oblong-ovate to ovatelanceolate, 3 to 10 centimeters long, and pointed at the tip. Flowers are
solitary or several in each axil, stalked, pale green or yellowish-green, and
8 to 9 millimeters in diameter. Fruit is commonly red when ripe, oblonglanceolate, 1.5 to 2.5 centimeters long. Seeds are numerous and discoid.
Found throughout the Philippines, planted there and there about
dwellings, but also thoroughly established in open, waste places in settled
areas.
According to Stuartxchange Organization Philippine Medicinal Plant
their topic Siling Labuyo( IJPSR, 2012), Capsaicin it scientific name for
medicinal use comes from Capsicum frutescens and is the active
ingredient in the extract of hot peppers. It is most concentrated in the rib or
membrane, less in the seeds, least in the flesh. Capsaicin depletes

14

substance P in the afferent type C sensory nerve fibers, affecting only

proprioception. Unlike other treatments for neuropathy, such as local
anesthetics, opiates, anti-seizure medications or tricyclic antidepressants,
capsaicin specifically treats pain without impairing other aspects of the
nervous system. In incomplete depletion of substance P from suboptimal
use, it may cause paradoxical increase of pain.
Capsaicin is the scientific name of the component of chili peppers,
or cayenne pepper, which gives this product its intense heat. Commonly
used as an ingredient in foods, when capsaicin is consumed from these
peppers, it can stimulate digestion and reduce inflammation. In fact,
capsaicin has been widely recognized as a therapeutic agent in the
treatment of many conditions such as bursitis, arthritis pain, and even
complications involving gastrointestinal health. Although little research has
been

reported

using

the

whole Capsicum

annum or Capsicum

frutescence plant for people with cancer, capsaicin (a major active

ingredient) has been studied in oral and topical forms. Several studies
have shown that capsaicin may be somewhat useful for managing pain
related to surgery and mouth sores due to chemotherapy and radiation
therapy.
Another Study conducted on treatment sand side effect site that
some proponents claim that capsaicin has antioxidant properties that help
to fight the carcinogen nitrosamine, a cancer-causing agent. An
antioxidant is a compound that blocks the action of free radicals, activated

15

oxygen molecules that can damage cells. Still others claim that it may
prevent DNA damage and lung cancer due to cigarette smoke. Available
evidence does not support claims of protection from the effects of
smoking.

Over

the

years,

the Capsicum

annum or Capsicum

frutescens herb has been used by alternative medicine practitioners as a

remedy for a variety of conditions, such as upset stomach, menstrual
cramps, headaches, shingles, diarrhea, loss of appetite, stomach ulcers,
poor digestion, sore throat, itching, alcoholism, motion sickness,
toothache, malaria, and yellow fever. Some practitioners also claim it can
prevent colds, heart disease, and stroke; increase sexual potency; foster
weight loss; and strengthen the heart.
This study explains and tackles the advantage and other treatments
of chili pepper which is related and relevant to the study conducting by the
proponents in present. Their studies also introduced the appearance and
the availability of the chili pepper here in the Philippines. Its medicinal use
which the chili composed of, that can help and treat many conditions. It is
also discussed that the chili pepper gives intense heat that helps to open
pores and that it increases blood flow to the surface of the skin which
relates to the proponents present study about treating acne problem.
Because of that the proponent chooses to add milk in order to lessen the
burning sensation and at the same time moisturizes the skin.
Foreign Studies

16

Salynn Boyles (2011) in her article An Antibiotic Sensitivity Test is

done to help choose the antibiotic that will be most effective against the
specific types of bacteria or fungus infecting an individual person. Some
types of bacteria or fungus are resistant to certain antibiotics because of
differences in their genetic material. Infections caused by resistant
bacteria or fungi are not cured by treatment with those antibiotics.
Drug-resistant bacteria or fungi usually develop because the entire
course of antibiotic treatment was not completed. Stopping drug treatment
early kills only the bacteria or fungi that are sensitive to the drugs, allowing
the resistant bacteria or fungi to multiply and cause an infection.
Antibacterial soaps are no more effective than plain soap and water for
killing disease-causing germs, but the jury is still out on whether they
promote antibiotic resistance in users, a newly published research
analysis shows.
Researchers from the University of Michigan School of Public
Health reviewed 27 studies examining the safety and effectiveness of
antibacterial products containing the active ingredient triclosan.
The article includes most commercially available soaps, detergents
and other products with the word 'antibacterial' on their labels, with the
notable exception of alcohol-based hand gels. Soaps containing triclosan
at concentrations commonly seen in products sold to the public were
found to be no better for killing bacteria and preventing infectious illness
than soaps that did not contain triclosan. "Antibacterial soaps do not

17

provide a benefit above and beyond plain soaps for generally healthy
people living in the community," researcher Allison Aiello, PhD, tells
WebMD.
"Washing your hands is extremely important for preventing the
spread of infectious illness, especially at critical points like after using the
toilet, changing the baby, or handling raw foods. But consumers cannot
assume that antibacterial soaps are better for this than other soaps."
According Elaine Larson, RN, PhD, and Stuart Levy, MD, Aiello has
conducted some of the largest and most rigorously designed studies
examining the safety and effectiveness of antibacterial products.
Studies in their own laboratory first showed that triclosan can cause some
bacteria to become resistant to widely used antibiotics like amoxicillin, but
this has not been shown outside the lab.
In another of their studies, 238 families were told to either use
triclosan-containing cleaning and hygiene products for a year or similar
products without the antibacterial agent. Skin testing conducted before,
during, and after the intervention suggested that both cleansing regimens
were equally effective for killing germs. There was also no evidence of an
increase in antibiotic-resistant bacteria on the hands of people who
washed with the antibacterial products. A spokesman for the soap industry
tells WebMD that no evidence exists outside the laboratory linking the use
of antibacterial soaps and cleansers to the promotion of antibiotic-resistant
superbugs. "It is egregious to continually hype the hypothesis that these

18

products are contributing to antibiotic resistance," Brian Sansoni of the

Soap and Detergent Association (SDA) tells WebMD. "These researchers
keep raising the specter of what could happen, but it is a ghost story
without a ghost."
This literature is related to the present study because this also
discussed the pros and cons of soap. This also discusses the benefits of
antibacterial soap and where the soap is to be used for. The objective of
the chili and milk soap is to bring consumers a newly invented soap for
preventing acne. Our soap will help your skin healthy and it will eliminate
free radicals to the skin. It also eliminates dead skin that will make the skin
clearer and cleaner. This also reverse aging skin Chili peppers help fight
aging in the skin. Two nuclear transcription factors (parts of human cells)
play a role in averting cancer and keeping skin young. These particular
nuclear transcription factors are triggered by UV light, which can lead to
aging skin and other problems. Chili peppers have capsaicin, which works
to block the nuclear transcription factors from activating in the first place.
The product contains Milk one of the healthiest food available and it
is also a wonderful beauty aid. Milk plays an important role in overall
nutrition and health. Proponents choose coconut milk with chili because
coconut milk contains vitamins A and D which help the skin to stay soft,
supple, radiant, and glowing. The proponents choose milk to moisturize
the skin and at the same time ease the burning sensation that consumers
might feel because of the chili that the soap contains.

19

Local Studies
According to Steve Johnson (July 25, 2005) A product made from
chili peppers, is said to help eliminate acne. The product "Capisderm"
made by SiCap Industries, LLC, a manufacturer of herbal supplements,
claims to wipe out acne in a matter of days, without any of the burning
sensation people come to expect from chili peppers.
The Researchers believe it works on two fronts - First the thermal
heat action of Capsaicin helps prevents and treat pimples by opening of
the pores and increase blood flow to the surface of the skin. Secondly,
Capsaicin has powerful antimicrobial properties that help distinguish a
harmful bacterium thats hiding within the layers of skin. Capsaicin also
helps to desensitize sensitive skin by affecting a series of tiny nerves, and
in this way it may also be beneficial for relieving chronic topical pain
associated with certain circulatory conditions.
Why the proponent chose to use soap? This study aims to
maximize the use of bar soap in terms of for longing the usage of the
soap. The soap is combination of chili and coconut milk which help to
eliminate the pimples and coconut milk is to lessen the burning sensation
which moisturizes the skin. The milk protein called casein acts as a natural
detergent, breaking up the capsaicin. Many dairy products also contain fat
which can help to dissolve the capsaicin.

Due to the coconuts

moisturizing properties, coconut milk can soothe the symptoms of

psoriasis, dermatitis, and eczema. The natural fatty acids in this milk can

20

help treat and irritated skin. It helps to form a chemical barrier on the skin
to ward of infection. The soap contains capsaicin that has antimicrobial
properties that help distinguish harmful bacteria that are hiding within the
layer of skin. It has a thermal heat action that helps to open pores and
increase blood flow to the surface of the skin.
The soap made of chili and milk containing a high concentration of
vitamin C that help reduce the swelling of the pimples which is good in
other antioxidants like vitamin A and flavanoids like B carotene, acarotene, lutein, zae-xanthinm and cryptoxanthin that helps to protect the
body from injurious effects of free radicals generated during stress,
diseases conditions. Soap made with chili and milk is reversing aging skin
and reducing inflammation having a healthier and glowing skin.
The product is an innovation because it contains chili that is very
rare in keeping the skin acne free. The proponents arrive in creating this
product because one of the proponents is suffering from acne who wants
an alternative solution.
This study was relevant to the present research that helps to
eliminate the acne problem. Because the researchers also have belief that
the capsaicin helps to prevent and treat pimple by opening pores and this
has power antimicrobial which help distinguish a harmful bacterium that
may cause acne, while this study concern more on how to lessen the acne
and also to make skin moisture with the help of chili and milk.
Research Methodology

21

The research method that used by the proponents is the descriptive

method wherein, the study focused on present situations. It involves the
analysis, description, recording and the presentation of the present
system.
Under the descriptive research method used by the proponents in
the study is the survey method which is also known as normative survey.
The results and findings of the study should always be compared with the
standards. With the survey method, the researchers or proponents will be
able to find out statistically the specific areas where the proponents must
concentrate with.
Instruments and Technique Used
The proponents used primary and secondary data to gather
information that will be used in the study.
The primary data used by the proponents are questionnaire and
interviews. Questionnaire is used as reference material to gather
information directly to the respondents. And interviews are conducted to
determine the demand and supply situation of the product.
The proponents also used the secondary sources of data. The
proponents used the internet to gather more data and information, read
books, magazines, and articles regarding the proposed product.
Sampling Procedure
The proponents used the cluster sampling technique in selecting
the respondents required in the study. With the use of Slovens Formula,
399 residents were taken as respondents or as the target market (which

22

are men and women ages 13 to 40) of the proposed business from the
277,168 total populations of Malolos, Bulacan with the 5% margin of error.

FORMULA:
n=

N
1+N (e 2)

where:
N = total population
n = sample size
e = margin of error (5%)
SOLUTION:
n=

277,168
1+277,168(5 2)
n = 399

Treatment of Data
Statistical treatment of data is essential in order to make use of the
data in the right form. Raw data collection is only one aspect of any
experiment; the organization of data is equally important so that
appropriate conclusions can be drawn. This is what statistical treatment of
data is all about.