Feasibility Guide

1. SWOT and competitive Analysis

SWOT Analysis
Existing Core Facilitatin Strengths Weaknesses Opportunities Threats Value/Pric
Competito Product g e
rs s Products
       Pcs.
Your Company YUMMI  Easy to  Baked brownies  Our product  It can be
made and are more is open for easily
can appealing and improvemen imitated.
produce a more preferred t and  There are so
large by the developmen many
number in customer. ts. competitors
a short  No bake  Pastries are that are
period of brownies are growing making baked
time. not advisable to market and products.
 Our those health- are in  We are
product conscious demand catering to
can last 5 people. nowadays. students and
days if  People may still they have
refrigerate prefer baked limited
d. brownies and allowance
 This they may not and may not
product is like the idea of a want to buy
different no-bake our product.
from other brownie.
product.
 Pastries
like
brownies
are
popular
among the
student.
Competitor 1  Maintenan  No dining area.  Set up of  Other new
POCKET ce of a  Small staff. another stall. pastry/desser
BROWNIES good  Small market  Online order. t shop/stalls.
customer presence.  Seasonal  Brownies
care and  Rush and large offering and unlimited.
Feasibility Guide

accessibilit orders. discount.  Delivery

y.  Misalignment of  Social services.
 Easy business goals networking  Improvement
change of and consumers sites. of
market needs and  Services product/flavo
direction. wants. deliveries. rs.
 Low over- Small number of
heads. staff/manpower.
 Different
choices of
fancy and
dainty look
packaging.
 Customer
satisfactio
n.
Competitor 2  The groups  Being it as a  A market  New
CHOCOLAT marketing food business, vacated by in competitor in
E CHIP enterprise. the product effective our home
COOKIES.  The may be easily competitor. market.
product spoil.  More buyers  Price wars
we are  Business is still liking our with other
selling it is new not yet product. market and
very that  More sales competitor.
innovative. established. and profit.  New
 The price competitor
of the have more
product. innovative
product than
ours.
Emerging Competitors    340ml
 
Emerging MASHED BLACK  Wide  Less market  Marketing  Competition 35.00
Competitor 1 TARO COFFE variety and strategies between local
HASH unique and rising and
BROWN flavor hash income. international
brown brands.
Emerging TROPICAL BAMBOO  Excellent  Health  Opportunity  Threat from 19.00
Competitor 2 CRISPS CHIPS distributio conscious to target local
n and people avoid young male substitute
availability High fat and and female snacks
Feasibility Guide

cholesterol in teens in
 Great bamboo shoot addition to  Reduced
variety of chips middle age consumption
flavors  group by health
gives Have high  Possibility of conscious
customers customer brand being people
options switching, portrayed as
Reasonabl hence difficult not so
e pricing to understand unhealthy
ensures customers food if
spontaneo sodium
us content is
purchase reduced
considerably

Emerging CHRISTINE’ POTATO  Heart  Potato chips is  provide  the chips

Competitor 3 S CHIP CHIPS healthy unique flavors more and industry is
product to introduce in satisfaction highly
line. the market. to the competitive
 Specialize consumer, and many
in snack  Costumer and consumers of
food. o are distributers cookies are
not around the already very
familia world meet brand loyal.
r with everyday
our needs to  Trend s
produ nutrition. toward
cts healthy
becau  -calories- eating
se it is wise the
new in healthiest  Cost of raw
the product in material
marke the chips
t. industry.
 are more  Our product  It can be
appealing and is open for easily
more preferred improvemen imitated.
by the t and  There are so
customer. developmen many
ts. competitors
 People may still  Snacks are that are
prefer a healthy growing making chips
Feasibility Guide

snacks.. market and products.

are in  We are
demand catering to
nowadays. students and
they have
limited
allowance
and may not
want to buy
our product.

1. Target Market Analysis

Targeted Market 1 Targeted Market 2

STUDENT PEOPLE
Geographic School Canteen More distributed across
cities, suburbs, and exurbs

Demographic Age: 5 to 30+ Age: 20 to 38

Gender: Male, female and Gender: Male, female and
LGBT LGBT
Income: Low Income: Low to Medium
Non Prof and Professionals
Psychographi The students of Matanao, The young people want a
c National High School and unique and have selective
Matanao central taste. They are some sort
elementary school is of explorers, they love to
adventurous, curious will explore and try new things
attract new variety flavors and this product will surely
of brownies. have the taste that they
never want to miss.
Feasibility Guide

Behavioral The students are loyal to They perceive value in

the unique product, has premium products and
good taste and cheaper prefer
price. purchasing brownies.
Benefits A healthy food snacks, a Gives a sense of
good source of dietary, satisfaction. When you eat
affordable price to the some brownies or any
students and enjoyable to other treat, you will feel
taste. full.
Brownies are the perfect
snack if you have a lot of
activity.

2. Marketing Analysis

 Placement (distribution)
 The business belongs to Direct and Indirect marketing channel. Direct marketing where customers can buy
directly from the main producers and indirect marketing, the business also have an intermediary level.
 Market Entry Strategy
 Since the product is new to the market, Market Penetration strategy will be used in order to easily enter the
market. The organization will set a lower price to increase product demand and increase market share. While the
demand of the product is increasing, the organization saves money on product creation costs due to the greater
volume of production.

 Store Location
 The Choco Mushroom Brownies will be located at Matanao Davao del sur in front of Matanao National High
School. The target market of the business is the students, residents and walk-in customers. The owner decided
also to produce Choco Mushroom Brownies in school canteen and deliver it in bakeshop around Poblacion,
Matanao because it is accessible location to everyone who craves for brownies.

 Product
Feasibility Guide

 The” Choco Mushroom Brownies” is made of Chocolate and Mushroom products. Brownies is an all-time favorite
dessert of Pinoys because of its delectable taste and enticing aroma. That’s the reason why most bakery business
includes brownies in their list of products and many brownies businesses keep popping like mushrooms. Setting
up a brownies business can start at the comfort of your home. While the demand of your neighborhood of your
brownies will greatly contribute to the success of your home-based business, you can also offer your products to
other places such as café and school canteens. Since there are many competitions in this industry. Make your
business stand out by offering different flavors of brownies, using unique ingredients, delivering affordable but
consistent and quality product, as well as making unique packages for your brownies.

 New Product Development

 This Chocolate Mushroom Brownies is one of the most efficient suppliers and retailers for all customers. It
enables us to compete with others made it so stand above as the number one producers of cookies in the
market.
 Packaging, diffusion of the new products

 Quality Regulation
 Choco Mushroom Brownies has a number of advantages that will allow us to build our product identity, add value
to our retail and build a loyal customer base while standing apart from our competitors. We specialize on
brownies. Our location is central to our target customer base. Our employees are professional. There isn’t any
hassle of any kind “you just buy it and go”.
 Price
Feasibility Guide

 Cost-based pricing will be used in the pricing of the product considering to the production cost and other relating
cost including the manufacturing, marketing and other cost expenses involved in creating and delivery process. It
will also be based on the prevailing prices that are available in the market. To determine the advantages against
the competitors and improve the product’s performance, benchmarking will be conducted.
 Market based strategy.
 Moving forwards, we anticipate the convenience trend to impact the brownie category. While gluten-free and low
carb claims are still high on consumer’s minds, they are not causing consumer to skip the brownies. Instead it is
inconvenient for busy consumers to buy a large pan of brownies that might not be easy to make and consume on
the go. Consumers think is quicker to grab a donut, muffin or even a pre-sliced cake. There’s a big opportunity for
bakers to provide convenient, bite-sized brownies to capture more sales from on-the-go consumers.
 Price Differentials.

Company Product Selling Price

CHOCOLATE MUSHROOM BROWNIES ₱23.00
Existing competitors product
POCKET BROWNIES ₱50.00

CHOCOLATE COOKIES CHIP  ₱55.00

Emerging competitors product

MASHED TARO HASH BROWN ₱35.00

TROPICAL CRISPS ₱19.00

 Promotion
 The product will be promoted through posting tarpaulins and posters around the area and the neighboring.
Giving flyers and brochures to the customers and stores and digital marketing which will be using internet
connected devices to engage customers with online advertising, like Facebook.

 Marketing Source Delivered via Mass Media

Feasibility Guide

 Chocolate Mushroom Brownies will be delivered thru internet.

 Marketing Source Delivered Personally

 The business belongs to Direct and Indirect marketing channel. Direct marketing where customers can buy
directly from the main producers and indirect marketing, the business also have an intermediary level.

Manufacturer

Retailer

Consumers (End User)

 Feasibility Guide

3. Implementation and Evaluation Analysis

Implementation Chart
2020 2021
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
Place
Market Entry
Strategy.
Store Location
Product
New Product
Development
Packaging,
diffusion of the
new products
Quality Regulation
Price
Market based
strategy.
Price Differentials.
Discount carefully.
Promotion
Marketing Source
Delivered via Mass
Media
Marketing Source
Delivered
Personally
Non-marketing Evaluation
Resources Chart
Delivered 2019 2020
Personally
How 4th 1st 2nd 3rd Quarter 4th Who?
Quarter Quarter Quarter Quarter
Place
Market Entry Conduct a survey and Consultant,
Strategy. choose the best agent Distribution
 Feasibility Guide

Store Location or distributor towards Department,

the opening new shop Retail Personal.
in Philippines
Product
New Product Conduct a survey to Research and
Development determine the product
Packaging, diffusion satisfaction of Development.
of the new products customers towards
the product
Quality Regulation Regular checking for
the product and raw
material quality.
Price
Market based Conduct a survey, Market Sales
strategy. calculation, and Department,
Price Differentials. consideration towards Accountant.
Discount carefully. the undertaking price
strategy, and measure
the changes in sales.
Promotion
Marketing Source Create a private social Marketing
Delivered via Mass media and survey the Division,
Media people rating or like in Advertising
Marketing Source Alana’s page, looking department.
Delivered Personally for representative to
Non-marketing conducting free
Resources Delivered tasting in “Ranch
Personally Market”.

4. Profitability Indicators/Ratios
Feasibility Guide

The proposed project on the production of Chocolate Mushroom Brownies is economically and financially viable business
or income generating project (IGP) based on the positive results of the following indicators given below:

Return on investment Year 1 Year 2 Year 3 Average annual return

on investment

Net income ₱60,586 ₱98,678.8 ₱108,546.68 ₱267,811.48

Investment cost ₱1,000,000 ₱1,000,000 ₱1,000,000 ₱3,000,000

Return on investment 0.06 0.09 0.10 0.09

(%)

Undiscounted payback Year 1 Year 2 Year 3 Average Undiscounted

period payback period

Initial investment cost ₱1,000,000 ₱1,000,000 ₱1,000,000 ₱3,000,000

Annual profit ₱60,586 ₱98,678.8 ₱108,546.68 ₱267,811.48
Undiscounted 16.51 10.13 9.21 11.20
payback period(%)
Feasibility Guide

Financial Profitability Measures Computed Values

1. Average Annual Return on Investment 0.09
2. Average Annual Net Income 267,811.48
3. Undiscounted Payback Period 11.20
PROJECT INVESTMENT COST 3,000,000
Feasibility Guide

Contact us:
Name: Ella Mae B. Ayap
Address:
Contact no: 09658858899
Email address: [email protected]
www.tropicalcrisps.com
Feasibility Guide

Product Name: Choco Mushroom Brownies

Brand Name: “Yummilicous Brownies”
Product Tagline: “Yummy and delicious, so undeniable.”

EXECUTIVE SUMMARY

PLAN SUMMARY

Choco Mushroom Brownies is start up a sole partnership that will be located Matanao Davao del sur in front of
Matanao National High School. Choco Mushroom Brownies focusing on making brownies product with only this one flavor
which is the chocolate flavor. Choco Mushroom Brownies also offer their product to all student of Matanao National High
School may it be pre-ordered or direct selling. The business is also open for the development of new flavor and eventually
new product that is similar to baked goods.
Choco Mushroom Brownies that are made with the ingredients bought from a reliable source of raw materials of
food product. The product is prepared the day before it will be sold since this product has a life span of 5 days if
refrigerated.
Since we are catering in a high school with almost half of the population are students, we reduced the price being
affordable as if can. Still having the superior quality and taste our product is still affordable and the quality and taste is
still worth the cost of the product.

INTRODUCTION:

In the growing world of business, it is really a challenge for those who want to start a business to come up with a unique
product or services that will cater a wide market. Coming up with a distinctive product may seem impossible though
variations and planning up of different ideas may produce a unique and sole business product that will be enjoyed by
many consumers. In starting up a business it is property to think first if the product is something that people would
actually spend their money for. In the community we are in, most of the business coming up are concerning foods,
beverages and other similar product.
Many Filipinos around if not all have sweet tooth. They almost always see to it that sweets or desserts are a part of
their daily diet. As aspiring Entrepreneurs, we took that opportunity and come up with the idea of starting a business that
will cater the people a product that will surely satisfy their cravings of sweet delicacies. Having this as an idea for
Feasibility Guide

business we establish our product to be home made and easy to make no-bake brownies which will surely be highly
accepted by the target market

A. Mission:

Offering brownies in extraordinary taste with intense care and guaranteed freshness upon arrival.

B. Vision:

Choco Mushroom Brownies is endowing the quality taste of delicious brownies that will soon be a part of season’s
greetings that are best for parties, gifts, giveaways, occasion, and special celebration.

C. Goals:

1. Our goal is to introduce new recipes especially brownies that will satisfy the cravings of brownie lover
2. Develop the entrepreneur skills of the staff.
3. To promote brownies business in the food industry.
D. Objectives:

The main objective is to develop a quality and healthy products with unique concepts.
1. Attain sales of 828,000 in the first year
2. Increase second year sales by 50% and third year by 30%.
3. Expand to two stores by the third year of business.
E. Business Description:

Our business is intended only to market a small number of consumers which is mainly at the high school students
Choco Mushroom Brownies will provide brownies to all age groups especially to teenagers and college students. We will
try to give them as much joyful and healthy environment and will try to position ourselves as courteous, loyal, sincere and
environmental friendly people.
Feasibility Guide

.F. Location of the Business:

The Choco Mushroom Brownies will be located at Matanao Davao del sur in front of Matanao National High School.
The target market of the business is the students, residents and walk-in customers. The owner decided also to produce
Choco Mushrooom Brownies in school canteen and deliver it in bakeshop around Poblacion, Matanao because it is
accessible location to everyone who craves for brownies.

G. Organizational Structure:

Choco Mushroom Brownies is solely owned by Miss Ella Mae B. Ayap. This is a sole proprietorship type of business.

H. Capital Requirement
The finance of the project will be provided by the entrepreneurs. A loan of 1,000,000 will be required. The owner
will bear the remaining cost of the project. The total start-up capital for the project is 2,000,000.
Feasibility Guide

A. IMPLEMENTATION TIMELINE

Status and timetable of the project

Chart of activities
Feasibility Guide

ACTIVITIES PROJECT SCHEDULE

JA FE MA AP MA JUN JU AU SE OC NO DE
N. B. R. R. Y. E. L. G. PT. T. V. C.
 Project Initiation
 Vision
 Mission
 Goals
 Objective
 Looking for a target
market
 Project Planning
 Layout of the business
project, Considering the
amount of capital
required in the business
 Strength, weaknesses,
Opportunity and
Threats consideration of
the project.
 Arranging the concept
of the project.
 Project Execution
 Looking for building
space for rent.
 Setting Business
requirements for
permit.
 Project Closure
 Starting the business
operation
 Feasibility Guide

PRODUCTION PLAN

PRODUCT:

The” Choco Mushroom Brownies” is made of Chocolate and Mushroom products. Brownies is an all-time favorite
dessert of Pinoys because of its delectable taste and enticing aroma. That’s the reason why most bakery business
includes brownies in their list of products and many brownies businesses keep popping like mushrooms. Setting up a
brownies business can start at the comfort of your home. While the demand of your neighborhood of your brownies will
greatly contribute to the success of your home-based business, you can also offer your products to other places such as
café and school canteens. Since there are many competitions in this industry. Make your business stand out by offering
different flavors of brownies, using unique ingredients, delivering affordable but consistent and quality product, as well as
making unique packages for your brownies.

PRODUCTION SYSTEM:

Choco Mushroom Brownies will be processed in the following:

1. Gently remove any excess dirt off the mushroom by either brushing or rinsing with cold water.
2. Using a food processor, place the mushrooms in first and chop until fine.
3. Now add the butter, coconut oil, maple syrup, melted chocolate and vanilla extract, and combine well. The mixture
should now be sticky puree.
4. In separate bowl, mix together all the dry ingredients (flour, cocoa powder, baking soda, baking powder and salt)
5. Slowly add the mixed dry ingredients to the mixed wet ingredients, continue to mix in the processor until well
combined. You may need to scrape down the sides a few times during the process.
6. Put in steamer. After make it cool and serve and enjoy.
Choco Mushroom Brownies will be processed in the following:

Measure and Put in the rice

Prepare all Mix all the
weighing all the cooker and
ingredients ingredients
ingredients steam it.

Store the Packaging Make it cool for

Distribution
product in the and labelling a while
and ready
storage room.
for sale
Feasibility Guide

A. RAW MATERIALS

The raw materials to be used in producing the product which is Choco Mushroom Brownies includes White Button
Mushroom, Cocoa Powder, butter, Tablia, maple syrup, coconut oil, vanilla extract, baking soda, baking powder and
greaseproof paper.

B. FACILITIES AND EQUIPMENT

Materials Quantity Cost per Total cost Life Depreciation

and unit
Equipment
Spatula 5 20 100 5 years 20
Mixing bowl 5 160 800 5 years 160
Ladle 5 25 125 5 years 25
Measuring 5 50 250 5 years 50
cup
Feasibility Guide

Measuring 5 50 250 5 years 50

spoon
Gas stove 2 1,050 2,100 10 years 210
Pot 4 500 2,000 5 years 400
Knife 2 30 60 5 years 12
Utility trays 5 50 250 5 years 50
Gas tank 2 800 1,600 10 years 160
PPE 10 1,000 10,000 2 years 5,000
Labeling 2 10,000 20,000 10 years 2,000
Machine
Weighting 2 250 500 10 years 50
scale
Can opener 2 100 200 2 years 100
Sub-total ₱17,885 ₱8,287

C. CUSTOMER SERVICE

 We take pride in going the extra smile to make you happy

 We will make every attempt to accommodate your special request for your order

D. INVENTORY MANAGEMENT

PRE-PURCHASE MONTHLY
Item Quantity/Production Unit Price Total Cost
White Button 4 kg. 100.00 400.00
Mushroom
Cake flour 25 kg 63.00 1575.00
Tablia 100 pcs. 5.00 500.00
Coconut oil 25 kg. 30.00 750.00
Feasibility Guide

Maple syrup 2 bottle 150.00 300.00

Butter 25 ounces 35.00 875.00
Cocoa powder 4 pack (500 grams) 144.00 576.00
Vanilla extract 4 bottles 95.00 380.00
Baking soda 25 kg. 20.00 500.00
Baking powder 25 kg. 20.00 500.00
Salt 1 kg. 10.00 10.00
Sub-total ₱5966.00

E. LICENSES, PERMITS AND REGULATIONS

This business is protected by the law for this is permitted under the Department of Health (DOH), food and
Nutrition Research Institute (FNRI), and Bureau of internal Revenue (BIR) and fire proof certificate. This business may
support the effort to eradicate malnutrition and unhealthy by promoting this kind of flavor enhancement to the
undernourished individual. The production of Shrimp ice cream is surely made by clean equipment and materials. The
utilities perform with their clean gears or uniforms with mask on.

F. PATENTS AND TRADEMARKS

G. ENVIRONMENTAL ISSUES

This product will only use food wrapping paper so that it will minimize the population about waste and global
warming. Our store will be located at canteen where people can easily have checked our establishment on how we handle
our proper cleanliness and hygiene regarding with serving our customers.

H. QUALITY CONTROL
Feasibility Guide

To ensure that the brownies is handled in such a matter that is safe for human consumption, both of the
employees of Choco Mushroom Brownies will take a safe food handlers course. Additionally, the building will be approved
by public health to meet strict guidelines for the safety of the employees and customers.
 ½ cups white button mushroom – 6.5
 ¼ cup cake flour – 1.5
 1/8 cup maple syrup – .5
 1/8 cup coconut oil – 1.5
 1/8 cup cocoa powder – 1.5
 1/8 teaspoon of vanilla extract – .5
 1/8 teaspoon of baking soda – .5
 1/8 teaspoon of baking powder – .5
 Pinch of salt - .5
 Labelling – 2.00
 production worker - 5.00
 wrapper paper - 2.00
total cost per unit = 23

A. OPERATION TIMELINE
Status and timetable of the project

Chart of activities
Feasibility Guide

ACTIVITIES PROJECT SCHEDULE

JA FE MA AP MA JUN JU AU SE OC NO DE
N. B. R. R. Y. E. L. G. PT. T. V. C.
 Project Initiation
 Purchase raw materials

 Project execution
 Supply the demand unit

 Distribution
 Setting any issues.
 Project Closure
 Liquidation of all sales
and revenue and etc.

MANAGEMENT AND ORGANIZATION

A. ORGANIZATIONAL STRUCTURE

Owner/Manager
Feasibility Guide

Sales Production
Representative Workers

B. MANAGEMENT TEAM

Manager- Highest rank in the position of the company, whose primary responsibilities include making major decisions,
managing overall operations and resources of the business.

Bookkeeper- Responsible for the organization’s accounts including recording of all the financial transactions, produces
financial statements and other financial reports.

Sales Representative- Responsible for obtaining orders, selling products using solid arguments to prospective
customers and established new accounts by planning and organizing daily work schedule to call on existing or potential
sales outlets and other trade factors.

Production Workers- Responsible for operating and maintaining machine and equipment in the factory or warehouse
and preparing items for distribution, packaging, labeling and manufacturing or processing of products.

C. PERSONNEL PLAN

Direct Labor Needed to be hire

Kind of Skills No.of workers
Feasibility Guide

worker
Manager Planning, communication, 1
decision-making, problem-
solving and motivating.
Bookkeeper Organizing records, great 1
data entry skills, computer
skills, good communication.
Salesperson Product knowledge, Strategic 1
prospecting skills, rapport
building on the call, active
listening, communication,
Objection handling.
Production Attention to detail, Critical 1
worker(₱250 thinking, strong
per worker) communication, interest and
aptitude for technology.
Total 4

D. COMPENSATION PLAN
Direct Labor Needed Monthly
Kind of Skills No. Salary Budget
worker f
wor
kers
Manager Planning, communication, 1 400 10,000
decision-making, problem-
solving and motivating.
Bookkeeper Organizing records, great 1 350 8,750
data entry skills, computer
skills, good communication.
Salesperson Product knowledge, Strategic 1 300 7,500
Feasibility Guide

prospecting skills, rapport

building on the call, active
listening, communication,
Objection handling.
Production Attention to detail, Critical 1 250 6,250
worker(₱250 thinking, strong
per worker) communication, interest and
aptitude for technology.
Total 4 ₱1,300 ₱32,500

Direct Labor Needed Yearly

Kind of Skills No. of Year 1 Year 2 Year 3
worker workers
Manager Planning, 1 120,000 132,000 145,200
communication,
decision-making,
problem-solving and
motivating.
Bookkeeper Organizing records, 1 105,000 115,500 127,050
great data entry
skills, computer skills,
good communication.
Salesperson Product knowledge, 1 90,000 99,000 108,900
Strategic prospecting
skills, rapport
building on the call,
active listening,
communication,
Objection handling.
Production Attention to detail, 1 75,000 82,500
worker(₱25 Critical thinking, 90,750
Feasibility Guide

0 per strong
worker) communication,
interest and aptitude
for technology.
Total 3 ₱390,0 ₱429,00 ₱471,9
00 0 00

Factory Overhead

Factory Overhead Monthly

Type of Factory Overhead Budget
Indirect labor:
2 utility per production (250) 6,250
Electricity 3,000
Water 1,500
Transportation 1,000
Insurance 1,500
Fuel and Lubricants 2,000
Total ₱15,250

Factory Overhead Yearly

Type of Year 1 Year 2 Year 3
Factory
Overhead
Indirect labor:
2 utility per 75,000 82,500 90,750
production
(250)
Electricity 36,000 39,600 43,560
Water 18,000 19,800 21,780
Feasibility Guide

Transportation 12,000 13,200 14,520

Insurance 18,000 19,800 21,780
Fuel and 24,000 26,400 29,040
Lubricants
Total ₱183,000 ₱201,300 ₱221,430

E. PROFESSIONAL SERVICES

Choco Mushroom Brownies exist with a professional person. It includes lawyers, advertising professionals, accountants,
financial advisers, and consultants. Basically, they offer customized, knowledge-based services to the firm.

MARKETING PLAN
A. MARKET TRENDS

Moving forwards, we anticipate the convenience trend to impact the brownie category. While gluten-free and low
carb claims are still high on consumer’s minds, they are not causing consumer to skip the brownies. Instead it is
inconvenient for busy consumers to buy a large pan of brownies that might not be easy to make and consume on the go.
Consumers think is quicker to grab a donut, muffin or even a pre-sliced cake. There’s a big opportunity for bakers to
provide convenient, bite-sized brownies to capture more sales from on-the-go consumers

B. CUSTOMERS

The product consumers will be from young to adult, especially students and people who love to eat Choco
Mushroom Brownies around the area.

C. POTENTIAL CUSTOMERS

Bakeshops, school canteens, and café are the product target potential customers because mostly people are that
area or place so it is easy to catch them.
Feasibility Guide

D. MARKETING CONTRACTS

E. SUPPLY AND DEMAND

The targeted demands for the product Choco Mushroom Brownies are the following:

Markets Projected Quantity

Demanded Monthly (Choco
Mushroom Brownies)
Direct Selling 500 units
Bakeshops 1,000 units
Café 500 units
School Canteens 1,000 units
Total 3,000 units

Since the product is new to the market, Market Penetration strategy will be used in order to easily enter the
market. The organization will set a lower prices to increase product demand and increase market share. While the
demand of the product is increasing, the organization saves money on product creation costs due to the greater volume
of production.
PARTICULAR PRODUCTS SELLING SUGGESTED CONSIGNED/AGENT
PRICE RETAILING PRICE
Choco Mushroom Brownies ₱23.00 ₱25.00

F. Volume of Production and It’s cost for the next (3) three years.
Particula Year 1 Year 2 Year 3
r
Products
Choco Quantity Cost Quantity Cost Quantity Cost per
Mushroom per per unit
Brownies unit unit
3,000pcs.
Per month 36,000 ₱23.00 39,600 ₱23.00 43,560 ₱23.00
x 12
months
Feasibility Guide

G. STRATEGIC PARTNERS

H. PRICING

Cost-based pricing will be used in the pricing of the product considering to the production cost and other relating
cost including the manufacturing, marketing and other cost expenses involved in creating and delivery process. It will also
be based on the prevailing prices that are available in the market. To determine the advantages against the competitors
and improve the product’s performance, benchmarking will be conducted
Competitors Products Competitors Selling Price
Chocolate Chip Cookies ₱30.00

Unit Cost = Variable Cost+ Fixed Cost

Unit to produce

=__17885 + 83, 292+ 655,000 + 10,000 + 50,050_

36,000
Feasibility Guide

=___816227_
36,000

=₱22.67
Cost Plus Pricing
Mark-up Price =Unit Cost
1-unit of return sales
=_22.67_
1-0.10
=20.72
Selling Price = ₱23

I. PROMOTION
The product will be promoted through posting tarpaulins and posters around the area and the neighboring. Giving
flyers and brochures to the customers and stores and digital marketing which will be using internet connected devices to
engage customers with online advertising, like Facebook.
Activities Costs
Tarpaulins/ Posters ₱3,000.00
Flyers/ ₱2,000.00
Brochures ₱2,000.00
Social Media (Facebook and website) ₱3,000.00
Total ₱10,000.00

J. DISTRIBUTION
The business belongs to Direct and Indirect marketing channel. Direct marketing where customers can buy
directly from the main producers and indirect marketing, the business also have an intermediary level.

Manufacturer
Feasibility Guide

Retailer

Consumers (End User)

K. TARGET MARKETS

Our target market includes people who are health conscious or have any common food allergies. This is a market
since most of the bakeries now in days do not cater to these needs with the exception of high-fiber diets.
Choco Mushroom Brownies will be mainly focusing on serving kids and adults. It’s impossible to find nutritious food
because junk food and sweet foods which are unhealthy have conquered the whole market, but if Choco Mushroom
Brownies will be implemented it will be one of those few shops that offers nutritious and delicious brownies. It will also
target teenagers who are concerned about their weight gain.

L. COMPETITIVE ADVANTAGE
Choco Mushroom Brownies has a number of advantages that will allow us to build our product identity, add
value to our retail and build a loyal customer base while standing apart from our competitors. We specialize on brownies.
Our location is central to our target customer base. Our employees are professional. There isn’t any hassle of any kind
“you just buy it and go”.
Feasibility Guide

FINANCIAL PLAN

FINANCIAL POSITION
Projected Income Statement

This table shows the projected Income statement for the (3) three consecutive years.

SALES FORECAST
Particular Year 1 Year 2 Year 3
Product
Choco
Mushroom ₱828,000 ₱910,800 ₱1,001,880
Brownies
Total
₱828,000 ₱910,800 ₱1,001,880
Less pre-
purchase of ₱83,292 ₱91,621.2 ₱100,783.32
raw materials
Gross Profit ₱744,708 ₱819,178.8 ₱901,096.68

Less:
operating
Expenses
Promotional 10,000.00 - -
Expenses
Factory 183,000.00 201,300.00 221,430
Overhead
Direct Labor 390,000.00 ₱429,000.00 ₱471,900.00
Rental 24,000.00 26,400.00 29,040.00
Miscellaneous 24,000.00 26,400.00 29,040.00
Feasibility Guide

Communication 24,000.00 26,400.00 29,040.00

Permit and 10,000.00 11,000.00 12,100.00
licenses
Depreciation 19,122.00 - -
Total ₱684,122.00 ₱720,500.00 ₱792,550.00
Net Profit ₱60,586 ₱98,678.8 ₱108,546.68

I. FINANCIAL PROJECTION

A. Volume of Production and It’s cost for the next (3) three years.

Particula Year 1 Year 2 Year 3

r
Products
Choco Quantity Cost Quantity Cost per Quantity Cost per
Mushroom per unit unit
Brownies unit
3,000pcs.
Per month 36,000 ₱23.00 39,600 ₱23.00 43,560 ₱23.00
x 12 pcs. pcs pcs.
months

 Sales Forecast for the next (3) three years.

SALES FORECAST
Particular Year 1 Year 2 Year 3
Product
Choco
Feasibility Guide

Mushroom ₱828,000 ₱910,800 ₱1,001,880

Brownies

B. ASSET MANAGEMENT

I. Pre- Purchase of Raw Materials Monthly

Item Quantity/Production Unit Price Total Cost

White Button 4 kg. 100.00 400.00
Mushroom
Cake flour 25 kg 63.00 1575.00
Tablia 100 pcs. 5.00 500.00
Coconut oil 25 kg. 30.00 750.00
Maple syrup 2 bottle 150.00 300.00
Butter 25 ounces 35.00 875.00
Cocoa powder 4 pack (500 grams) 144.00 576.00
Vanilla extract 4 bottles 95.00 380.00
Baking soda 25 kg. 20.00 500.00
Baking powder 25 kg. 20.00 500.00
Salt 1 kg. 10.00 10.00
Sub-total ₱5,966.00

II. Pre- Purchase of Raw Materials Yearly

Item Quantity/Production Unit Price Total Cost

White Button 4 kg. 100.00 4,800.00
Mushroom
Cake flour 25 kg 63.00 18,900.00
Feasibility Guide

Tablia 100 pcs. 5.00 6,000.00

Coconut oil 25 kg. 30.00 9,000.00
Maple syrup 2 bottle 150.00 3,600.00
Butter 25 ounces 35.00 10,500.00
Cocoa powder 4 pack (500 grams) 144.00 6,912.00
Vanilla extract 4 bottles 95.00 4,560.00
Baking soda 25 kg. 20.00 18,900.00
Baking powder 25 kg. 20.00 18,900.00
Salt 1 kg. 10.00 120.00
Sub-total ₱83,292.00

III. Pre- Purchase of Raw materials for the next (3) Three Years

Particular Year 1 Year 2 Year 3

product
Choco Mushroom
Brownies 83,292.00 91,621.2 100,783.32
Total Cost
₱83,292 ₱91,621.2 ₱100,783.32

IV. Equipment, furniture and fixtures (10% materials Assumption)

Account title Number Cost per Total Life Depreciation

of units Unit cost
Equipment’s
:
Feasibility Guide

Computer set 2 10,000 20,000 10 years 2,000

Printer with 1 3,000 3,000 8 years 375
scanner
Printer 1 2,000 2,000 8 years 250
Ceiling fan 5 1,000 5,000 8 years 625
Furniture
and Fixture:
Culinary table 2 1,500 3,000 10 years 300
Office Table 2 2,500 5,000 10 years 500
Chairs 10 325 3,250 7 years 325
Storage 1 3,000 3,000 10 years 300
Cabinet
Office Cabinet 2 2,500 5,000 10 years 500
Curtains 4 200 800 5 years 160
Total ₱50,050 ₱5,335

V. Administrative Budget

Particulars Year 1 Year 2 Year 3

Manager/Owner 120,000 132,200 145,200
Bookkeeper 105,000 115,500 127,050
Salesperson 90,000 99,000 108,900
Production 75,000 82,500 90,750
workers
1 Utilities 75,000 82,500 90,750
Electricity 36,000 39,600 43,560
Water 18,000 19,800 21,780
Transportation 12,000 13,200 14,520
Insurance 18,000 19,800 21,780
Rental 24,000 26,400 29,040
Feasibility Guide

Miscellaneous 24,000 26,400 29,040

Fees
Permit and 10,000 11,000 12,100
Licenses
Fuel and 24,000 26,400 29,040
lubricants
Communication 24,000 26,400 29,040
Total ₱655,000 ₱720,700 ₱792,550

Depreciation 19,122 - -

A. List of Assumption
 The following are the assumptions of financial status of the project.
Particular Assumption Status/Year
Volume of Production 10% Increase/year
Raw Materials Cost 10% Increase/ Year
Operating Expense 10% Increase/Year

B. Project Cost
Feasibility Guide

Materials and Quantity Cost per unit Total cost

Equipment
Spatula 5 20 100
Mixing bowl 5 160 800
Ladle 5 25 125
Measuring cup 5 50 250
Measuring spoon 5 50 250
Gas stove 2 1,050 2,100
Pot 4 500 2,000
Knife 2 30 60
Utility trays 5 50 250
Gas tank 2 800 1,600
PPE 10 1,000 10,000
Labeling Machine 2 10,000 20,000
Weighting scale 2 250 500
Can opener 2 100 200
Sub-total ₱17,885

C. Promotional Activities
Feasibility Guide

Activities Costs
Tarpaulins/ Posters ₱3,000.00
Flyers/ ₱2,000.00
Brochures ₱2000.00
Social Media (Facebook and website) ₱3,000.00
Total ₱10,000.00

D. Pre- Purchase of Raw Materials Yearly

Item Quantity/Productio Unit Price Total Cost

n
White Button 4 kg. 100.00 4,800.00
Mushroom
Cake flour 25 kg 63.00 18,900.00
Tablia 100 pcs. 5.00 6,000.00
Coconut oil 25 kg. 30.00 9,000.00
Maple syrup 2 bottle 150.00 3,600.00
Butter 25 ounces 35.00 10,500.00
Cocoa powder 4 pack (500 grams) 144.00 6,912.00
Vanilla extract 4 bottles 95.00 4,560.00