Kingfisher School of Business and Finance

Mac Arthur Highway, Lucao District, Dagupan City

A Business Research entitled

Submitted by:

Aquino, Janelle

Biala, Vinz Danzel

Chavez, John Carlo

Hingpit, Dhenice

Naraja, Frankie James

Tababa, Carl Andrew

Tentoco, Danica Angel

Group 1 (12 ABM 24)

Submitted to:
Ms. Kathleen Manamtam, CPA
Research 2 Adviser
Kingfisher School of Business and Finance

I. The Problem and Its Background

A. Introduction

Philippines is one of the top producers of fish in the world. It produces fishes like tilapia,

milkfish, tuna, shrimp and prawn, crabs, and etc. Hence, our country is truly blessed with these

natural resources that made our country rich. Also, the Philippines was considered as one of the

top performing countries in terms of aquaculture in 2012 with a total production of 3.1 million

tons of fish, crustaceans, mollusks, and other aquatic animals as per United Nations Food and

Agriculture Organization or also known as FAO (Fishery and Aquaculture Country Profiles,

2014).

According to (News: Regional Focus, Philippines, 2009), one of the growing industry in

the Philippines is the marine fisheries recording a 3-4% annual growth rate in tonnage terms and

about 6% growth in value which is a higher rate of growth . Aquaculture production is growing

at about 11% annually in tonnage terms without including ornamental fish. During the past

decade it became the largest and fastest growing fisheries sector. The overall fisheries production

in Region I grew by 1.3 percent in 4th quarter 2017. Meanwhile, in terms of provincial

distribution, the province of Pangasinan shared the bulk of aquaculture production with 99.2

percent in 4th quarter of 2017. The total fishery output of the province increased from 58,200

metric tons to 58,899 metric tons. (Severo, 2018)

However, one of the problems aquacultures are facing today is the decomposition of

unsold fish like bunor because of oversupply and low demand in the market that sometimes

fishermen chose to give it freely to their neighbor than make time selling it to the market with

uncertainty. Basically, some of the fish growers limit their production of fish specifically in the

Pangasinan because of this problem. Also, the fishes were bought by the businessmen in a lower

AQUINO, J., BIALA, V.D., CHAVEZ, J.C, HINGPIT, D., NARAJA, F.J., TABABA, C.A., TENTOCO, D.A., 2
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price that leads to every seller to have a lower income. So, in buying fishes that consumer

doesn’t usually purchasing in the market like bunor, could add up the income of fishermen.

A lot of businesses and dishes were made up and boomed through these fishes as their

main product. Sardines is a well-known canned fish and is for local consumption for its price is

lower and affordable to consumer. For past years, canned sardines are thought of as a last resort

for when you can’t be bothered to cook, but there are a lot of dishes to be made with this just like

pasta sardines, Portuguese sardine salad, fisherman’s eggs and many more.

Il Migloire Bunor InaCan is inspired by these canned sardines. The main ingredients are

fresh bunor (Goby fish) corn oil, pepper, laurel, and other spices that will be combined in one

can. The relish of the product will undergo through the process of preservation. It will attain its

complete quality as time goes by.

Moreover, the overall packaging and the product itself is very convenient to every

consumer because they can bring it with them anywhere, they go and most especially they can

consume it anytime they want.

Its general objective is to establish a company that will manufacture the production of Il

Migloire Bunor InaCan which will provide new and fresh product to the market. Also, the

researchers aim to generate an export quality product to promote and introduce the local goods of

Pangasinan, inside and outside the province. Distribution of the products will be made to the

different pasalubong areas in Pangasinan such as Manaoag, Dagupan City, and Urdaneta City, as

they are the target market of the study.

The purpose of this study is to lessen the oversupply and the decomposition of the

fishes, especially bunor that has a low demand in the market. In addition, it also empowers the

fish growers to invest more and to produce more fish because there will be a way fish can be

AQUINO, J., BIALA, V.D., CHAVEZ, J.C, HINGPIT, D., NARAJA, F.J., TABABA, C.A., TENTOCO, D.A., 3
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preserved in a long period of time so it will not be put into waste that could also help them in

their income.

Hence, the researchers are inspired to find realistic and economical means of producing

fish in a can in order to provide customers satisfaction. Similarly, the researchers will use fresh

bunor (Goby fish) corn oil, pepper, laurel, and other spices to manufacture Il Migloire Bunor

InaCan. The researchers believe that the said valuable raw materials are very abundant in the

society, thus the use of renewable and localize raw materials in the province is quite important.

Company Background

Figure 1.1: Company’s Location

Il MigloireBunorInaCan is located along the Brgy. Buenlag, Binmaley, Pangasinan. This

location will serve as the production site of the product and is chosen because of its convenience

for the following reasons: First, most of the suppliers as well as the ponds, can be reached from

that point to their places; Also, the necessary equipment, supplies, and the main ingredients, are

readily available within the area.

AQUINO, J., BIALA, V.D., CHAVEZ, J.C, HINGPIT, D., NARAJA, F.J., TABABA, C.A., TENTOCO, D.A., 4
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This logo will serve as the face of the product wherein it

consists of the following: its color where it showcases the different

shades of blue that denotes the sea as well as the waves and connotes

Figure 1.2: Product Logo

written on it, “Pangasinan’s Il Migliore Bunor InaCan” – where Il Migliore is the French term

for “the best” – and so, the phrase means that this product is the Pangasinan’s best Bunor (Goby

Fish) canned product.

Vision

To be one of the leading manufacturers and distributor of canned seafood products in

Luzon by creating high quality products.

Mission

To produce and provide a convenient, high-quality, gratifying, newly and tastiest canned

Bunor to the target pasalubong areas in different towns inside the province. Also, to make jobs to

our fisher folks who is one of this study in making this product. It is a win-win situation, through

production of Il Migloire Bunor InaCan, decomposition of fishes could be lessened and there

could be an increase in life of the workers.

Objectives

General

Il Migliore Bunor InaCan aims to become the biggest producer and distributor of Bunor

InaCan/seafood in the Philippines in 10 years.

Specific

AQUINO, J., BIALA, V.D., CHAVEZ, J.C, HINGPIT, D., NARAJA, F.J., TABABA, C.A., TENTOCO, D.A., 5
Kingfisher School of Business and Finance

Il Migliore Bunor InaCan targets to be known as the most delicious and gratifying

canned goods in terms of its taste and physical appearance to its customers by making high-

quality products in a year after its establishment. It also aims to have 20%-30% return on

investment in a year.

B. Statement of the Problem

This study seeks the answer to the following problems:

1. Will the consumers especially the target market accepts Il Migliore Bunor

InaCan?

2. How will the fisher folks improve their income/productivity through Il Migliore

Bunor InaCan?

3. Is there a significant difference between Il Migliore Bunor InaCan and other

commercial products in terms of:

a. Taste

b. Nutritional Value

c. Cost?

C. Scope and Delimitation

This study focuses on preventing fish decomposition specifically of Bunor fish (Goby

fish), since it has low in demand and overage in supply. And so, this study discusses about the

preservation of fish,specifically through canning process, as it is the process which this product

will go through.

Also, the target market of this study would be the different pasalubong centers inside

Pangasinan such as in Manaoag, Dagupan City, and Mangaldan, with the age of 18 and above as

they will become the researchers’ tool in order to market the people inside and outside the

AQUINO, J., BIALA, V.D., CHAVEZ, J.C, HINGPIT, D., NARAJA, F.J., TABABA, C.A., TENTOCO, D.A., 6
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province about the product. The distribution of the product to the pasalubong centers, will be

made through the use of courier services specifically LBC and JRS expresssince they have a

better, newer, faster, and cheaper delivery rate.

D. Significance of the Study

Results of this study may be beneficial to the following:

Community. Different bodies of water are very important to fisher folks and to people. It is

the source of their food, business, and for other purposes. The results of this study will help the

fisher folks by introducing and creating new product to the market. It can increase the income of

fisher folks by buying the Bunor fish that is the main ingredient of this study.

Economy. The economy will also be benefited because this business can produce Il

Migliore Bunor InaCan. This business can create jobs to help other people. Also, the product

might be exported in near future and it can help the economy to grow.

Future Researchers.The future researchers can use this as their reference to establish their

own products and for them to know the strengths and weaknesses in establishing this kind of

business.

E. Definition of Terms

Il Migliore. French term for “the best”.

Bunor. It is the Pangasinan term for goby fish and also the main ingredient of the

researchers’ product

InaCan. It can be defined as a Pangasinan term which means “ate” and as an English

phrase of “in a can”.

Pangasinenses. It is the target market of the study wherein it is a term used for the

Pangasinan residents.

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Composition. A product of mixing and combining various elements or ingredients.

Bibliography

Fishery and Aquaculture Country Profiles. (2014, May). Retrieved July 9, 2019, from FAO

Fisheries and Aquaculture Department: http://www.fao.org/fishery/facp/PHL/en

News: Regional Focus, Philippines. (2009, August 1). Retrieved July 9, 2019, from

WorldFishing & Aquaculture: https://www.worldfishing.net/news101/regional-

focus/philippines3

Severo, J. (2018, March 28). Region I’s Fisheries Production Accelerates in 4th Quarter 2017.

Retrieved July 9, 2019, from Philippine Statistics Authority: Region I - Ilocos Region:

http://rsso01.psa.gov.ph/content/region-i’s-fisheries-production-accelerates-4th-quarter-

2017

AQUINO, J., BIALA, V.D., CHAVEZ, J.C, HINGPIT, D., NARAJA, F.J., TABABA, C.A., TENTOCO, D.A., 8
Kingfisher School of Business and Finance

II. Theoretical Framework

A. Review of Related Literature

Related Literature

AQUINO, J., BIALA, V.D., CHAVEZ, J.C, HINGPIT, D., NARAJA, F.J., TABABA, C.A., TENTOCO, D.A., 9
Kingfisher School of Business and Finance

According to Our everyday daily life (2019), Pickling was developed as a means of food

preservation. Most pickling occurs in an acidic solution, such as vinegar, or a saltwater solution,

called brine. Although the term "pickling" may bring to mind pickled cucumbers, pickling

applies to variety of foods, including meats. Pickling offers several advantages over fresh

storage, particularly with economic benefits.

According to Brown (2019), Pickling rivals freezing, canning and drying for preventing

foods from spoiling. It also adds unique flavors to meals that might otherwise be boring. Many

fermented foods are also good sources of nutrients, including vitamins, amino acids and healthy

bacteria. Pickle juice can be used to facilitate hydration and can be used to decrease muscle

cramps caused by heat. Allows food, such as cucumbers and zucchini and summer squash, can

be preserved longer than the food could be eaten fresh.

Also, based on fitday.com (2018) The health benefits of pickled herring are well known

with hardly any dispute about them. The big health benefit of pickled herring is the presence of

Omega 3 fatty acids and also a spot of Vitamin D. Omega 3 is essential to the human body

because of its central role in being involved with development and growth, heart health and

circulation. On the other hand, the presence of Vitamin D in pickled herring is another plus

because Vitamin D plays a prominent role in the body's absorption of both phosphorus and

calcium, the formation of bones, and the upkeep of an immune system that is healthy.

And lastly, according to Edwards (2017), Eating pickled herring may actually help you

maintain a healthy heart. The leading cause of death for adult men in the U.S. is currently

coronary heart disease, which is generally related to poor nutrition and treated with dangerous

medications that come with intense side effects.

AQUINO, J., BIALA, V.D., CHAVEZ, J.C, HINGPIT, D., NARAJA, F.J., TABABA, C.A., TENTOCO, D.A., 10
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Inflammation is a huge problem in Western society because so many people are used to

eating foods that contribute to chronic inflammation. That inflammation is at the root of most

diseases. It’s also responsible for pain in several conditions, including non-specific neck and/or

back pain.

Omega-3s also impact your mental health very positively. There’s a lot of scientific

evidence pointing to an association with high omega-3 intake (coupled with the proper ratio of

omega-3 to omega-6) and decreased levels of depression. One reason this method of treatment

has been studied more recently has to do with the high prevalence of health problems connected

to psychotropic medications, including a high rate of smoking, obesity and heart problems as

side effects.

In the process of aging, one important element that’s often forgotten is the health of

skeletal muscle. Over time, the quality of skeletal muscle can degrade due to improper diet and

lack of exercise. This muscle degradation is tied to age-related diseases, but studies show that

consuming fish, like herring, high in omega-3s can actually reverse the loss of skeletal muscle

tissue and slow the process of aging.

Based on oral tradition, Dagupan was called before as Bacnotan. As early as 1583,

Bacnotan was just a marshland covered with mangrove and nipa palm trees. Natives used to live

near the shoreline and riverbanks where they got their foods. These natives also experienced

attacks and visits from pirates of Japan and China and other traders.

In 17th century and onwards developments in the place took place with the opening of

the docking station in Pantal (or what is now known as Pantalan Port) and eventually became a

trading center. Bangus industry and fishponds also flourished, and Spaniards built roads

AQUINO, J., BIALA, V.D., CHAVEZ, J.C, HINGPIT, D., NARAJA, F.J., TABABA, C.A., TENTOCO, D.A., 11
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connecting to Pangasinan and the Cagayan Valley. In 1891, Manila – Dagupan Railway was

completed.

However, on March 7, 1898, the Dagupeños unveiled a coordinated attack on Spanish

forces which was known as the the Battle of Dagupan that appears to have been planned months

in advance. The revolutionary forces are armed only with bolos and lances and they attacked the

Spanish with an ingenious rolling trench made of several banana tree trunks, wrapped in sheets

of dried nipa palm leaves. The trenches were seven feet in diameter.

On June 20, 1947 after the World War II, Dagupan became a city by virtue of Republic

Act No. 170. It was signed into law by President Manuel Roxas on October 15, 1947. Since this

time, commercial establishments grew rapidly, more roads were built, schools and public

markets were constructed. On July 16, 1990, a magnitude 7.7 earthquake struck northern Luzon.

The worst hit cities were Cabanatuan, Baguio and Dagupan. A lot of public and private

structures were destroyed or damaged when river banks slid into the Pantal River and dry land

into the swampy areas.

Related Studies

B. Industry Analysis

Supply and Demand

AQUINO, J., BIALA, V.D., CHAVEZ, J.C, HINGPIT, D., NARAJA, F.J., TABABA, C.A., TENTOCO, D.A., 12
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S. W. O. T. Analysis

Strengths

• Business location

The business' location will be at Baguio, La Union, Pangasinan, Tarlac and Pampanga.

The location will serve as the strength to the business for it will be located at the provinces'

capital that will make an ease for the customers to go and buy the products offered. Moreover,

the production location is near where the fish ponds are located.

• Prevents spoilage for a long period of time

It will reduce the possibility of food decomposition, because canning is a way to preserve

food.

• Easy process

The product-making is not complicated because it will only need corn oil, laurel, pepper

and other spices putting together.

Weaknesses

• New Entrant

The researches will need more experience to manage the business and build relationship

to the customer.

• One Main Product

The researches have only one main product, which is bunor. Unlike other businesses who

offer different variety of canned goods

• High Price

AQUINO, J., BIALA, V.D., CHAVEZ, J.C, HINGPIT, D., NARAJA, F.J., TABABA, C.A., TENTOCO, D.A., 13
Kingfisher School of Business and Finance

The product has a high price because of its ingredients and special packaging.

Opportunities

• Bunor InaCan as a Pasalubong

It can be served as a Pasalubong for the out-of-town or even out-of-the-country. It can

also be served as a gift for loved ones in special occasions.

• Exportation of product

Product can be exported to other countries without being decomposed. It will be stay long

even if it is transported by air or by port.

Threat

• Unexpected typhoons

The business' location is permanent and it is impossible to be move when there is an

unexpected typhoon. Moreover, because of the weather there will be a possibility that those

target customers (tourists) are not able to travel. Which will cause to having a low sale's

percentage.

• Season of Bunor or Bunor Supply

One of the business' threats is the season of the main ingredient which is the Bunor.

There will come a time that the production of Bunor fish will decrease and a time that will

increase.

• What customers think

Customers may not think about the product as a dish for everyday living. They may think

that it is just for a gift or only for Pasalubong.

AQUINO, J., BIALA, V.D., CHAVEZ, J.C, HINGPIT, D., NARAJA, F.J., TABABA, C.A., TENTOCO, D.A., 14
Kingfisher School of Business and Finance

• Substitutes

It will be the cause of low profitability for the business because consumers may think of

buying some other canned goods or even bottled products like Fish Paste (Inasin) which is also a

preservation like what the business' offers.

AQUINO, J., BIALA, V.D., CHAVEZ, J.C, HINGPIT, D., NARAJA, F.J., TABABA, C.A., TENTOCO, D.A., 15
Kingfisher School of Business and Finance

C. Porter’s Five Forces Model

Competitive Rivalry

Bargaining Power of Suppliers

Bargaining Power of Customers

Threats of Substitutions

Threats of New Entrants

D. Conceptual Framework

E. Hypotheses of the Study

Null Hypothesis

Alternative Hypothesis

F. Assumptions of the Study

AQUINO, J., BIALA, V.D., CHAVEZ, J.C, HINGPIT, D., NARAJA, F.J., TABABA, C.A., TENTOCO, D.A., 16
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Bibliography

Fishery and Aquaculture Country Profiles. (2014, May). Retrieved July 9, 2019, from FAO Fisheries and
Aquaculture Department: http://www.fao.org/fishery/facp/PHL/en

News: Regional Focus, Philippines. (2009, August 1). Retrieved July 9, 2019, from WorldFishing &
Aquaculture: https://www.worldfishing.net/news101/regional-focus/philippines3

Severo, J. (2018, March 28). Region I’s Fisheries Production Accelerates in 4th Quarter 2017. Retrieved
July 9, 2019, from Philippine Statistics Authority: Region I - Ilocos Region:
http://rsso01.psa.gov.ph/content/region-i’s-fisheries-production-accelerates-4th-quarter-2017

AQUINO, J., BIALA, V.D., CHAVEZ, J.C, HINGPIT, D., NARAJA, F.J., TABABA, C.A., TENTOCO, D.A., 17