J.

DEFINITION OF TERMS

• Demand - refers to consumer’s desire and willingness to pay price for specific product or

service.

• Supply - amount of specific good or service that is available to consumers.

• Demand-Supply Gap – difference between demand and supply of the product

• Balance Sheet - a statement of the assets, liabilities, and capital of a business or other

organization at a particular point in time, detailing the balance of income and expenditure

over the preceding period

• Income Statement – generates the income and expenses within a specified period

• Direct Labor – workers who are involved in the production of goods or services

• Factory overhead – cost connected in the manufacturing process

• Administrative cost – expense associated in controlling and directing an organization

K. METHODOLOGY

• Topic Selection

After many debates and deliberations, the group made the decisions of sticking with
Corn Rice Mixture as our topic. It's numerous health benefits, affordable price, and
delectable taste are the reason why we want to establish the business. We have also taken
into considerations that corn rice is mainly marketed at areas in Visayas Regions. We can
take advantage of the situation since there are limited competitors here in the Luzon Area.
Promoting the product would be our main objective. The topic should be feasible and it
must be built up once it is ventured.

• Creation of Corn Rice

The group plans on mixing Corn Rice with different varieties of rice in order to
improve its taste. The product consists of 50% Corn Rice and 50% White Rice that
depends on the variety that the consumers would want to purchase. Possible adjustments
and exploration of the product is necessary so impede setbacks must be acknowledged
before the production the new product.
• Inquiring of Loans offered by Banks

A capital is necessary in order to pursue the business. The group will inquire loans
offered by different banks and compare which one is the most beneficial in the business.

• Finding of Manufacturing and Commercial Locations

A strategic location is vital for the success of the business since Corn Rice Mixture
is not popularly known in the area. The group plans on establishing their business in Biñan
Laguna on the factors that its town is widely known for its affordable marketplace and
people all around Laguna visit the place for its easy access.
 MARKETING ASPECT

A. PRODUCT DESCRIPTION

Name of the Product

The group has created the product name "Corn Hub", a term that has been derived from
our main product 'Corn Rice' – a special type of rice whose main ingredient is corn, a product
innovation which is accountably novel from the common white rice that is commercially available
in the market and 'Hub' that basically means core. We thought of the name as a way of centralizing
Corn Rice as our main focus in the enterprise. The chosen product name has also been considered
because the term can easily be familiarized by the customers. The envisioned aspirations of the
company are to promote Corn Rice to everyone to ensure them that there are many alternatives
that will make them say "mas masarap pala sa iba".

Properties of the Product

As aforementioned, the main ingredient of the product is Corn Rice that includes different
varieties of rice that generally gives the same satisfaction as the usual white rice but with healthier
benefits especially to people involved with malnutrition. Corn has seen significant health benefits,
which then accounts for being a good source of antioxidant carotenoids that promotes eye health
and is rich of many vitamins and minerals.

Consumers of the Product

The product can be enjoyed by all ages, especially in the household since our main focus
in the market is for families and to those people who are conscious about their health. Another
factor to consider is that Corn Rice Mixture is accountable for reducing the demand of white rice
to reduce marketplace constraint. This can be beneficial to farmers within the Philippines since it
offers better monetary situation for them.

Geographical Dispersion of the Product

The Manufacturing area shall be situated at Biñan Laguna on a rent-to-own lot with a total
land area of 250 square meters (m^2). A food stall shall be established beside the manufacturing
plant. The accessibility and proximity was taken into account in choosing the location since many
people with which includes both the suppliers of the goods and the consumers of the product.
 B. DEMAND ANALYSIS

HISTORICAL AND PROJECTED POPULATION TARGET MARKET

TARGET 2014 2015 2016 2017 2018 2019 2020 2021 2022
AREA
Binan 323,037 333,028 334,024 335,021 336,025 337,031 338,042 339,057 340,075
Historical)

E. PRICE STUDY

The initial selling price shall be accounted at Php 1,300.00 per 25 kilograms by which
accounted for the initial cost acquired in producing the corn rice with the additional mark-up
value which consist of other related expenses such as white rice and raw materials that are
obtained upon the production of the goods.

The selling price is projected to increase by Php 3.00 per year which then considers the
increase in the cost to be realized as on the following years along with other factors which
would have an effect on the product.

Projected Annual Selling Price

SELLING PRICE
YEAR (Php)
2017 1,300
2018 1,350
2019 1,400
2020 1,450
2021 1,500
2022 1,550

F. SALES DISCOUNT

The Sales Discount shall reflect on the “Sack Package” set on the purchase of the Rice-
Corn Mixture.

Sack Package

ORDER FREE
(25 kg/sack)
20 Sacks 5 kg
40 Sacks 10 kg
60 Sacks above 25 kg
G. PRICING POLICY
As abovementioned, the price of corn rice-mixture is set at Php 1,300.00 on its starting
year. The breakdown of the costs acquired upon the production of corn rice-mixture is specified
on the technical and financial aspects of the study.

H. FACTORS AFFECTING THE MARKET

1. Demographic Changes
The success of the business can be reflected based on demographics. It pertains to
the current composition of the target market particularly to the changes of customer’s
population and preferences. These changes might increase or decrease the total demand for
the corn rice-mixture or the number of customers of the proposed business. The company
shall therefore have a keen observation particularly on their practices and develop new
strategies in order to meet the changing needs and desires of the customers.
2. Economic Stability
The status of the economy shall greatly affect the market and shall dictate the ability
of consumers upon the purchase of the corn rice-mixture. It will also limit the production
of corn rice-mixture if the demand of the consumers lessened. A weak economy may
dictate a change on the price of corn rice-mixture offered by the corn hub enterprise.
3. Availability of Raw Materials
Our proposed business uses different varieties of crops. There are instances that the
supply for these raw materials could be low due to the changes happening in the
environment (climate change), occurrence of unexpected events (typhoons and flood).
Furthermore, the shelf life of the raw materials must be taken into consideration to avoid
unwanted disposal of it.
4. Competitors
A competitor on the business is also one of the factors to be considered since it will
result to an increase market competition and a projected decrease on the gross sales of the
business. It is important to know their strengths and weaknesses in order to have a
competitive advantage and to know what areas of the business should be improved.
I. MARKETING PROGRAM

Product

The main products of Corn Hub Enterprise is a corn-rice mixture that offers different
variations that resembles as the common white rice. One of the marketing strategies is to
formally introduce the corn-rice mixture as best alternative for white rice. The innovation shall
begin by introducing corn-rice mixture contains 50:50. These shall be offered after the corn-
rice mixture has been introduced to the market.

Price

The start-up price of corn-rice mixture is set at Php 1,300.00. The product is set at this price
since the main ingredient is corn with a mixture of rice. Moreover, it offers more health benefits
as compared to the common white rice that the market selling.

Place

The Corn Hub enterprise is set together with a manufacturing area. The business will be
located at Binan, Laguna specifically at their main market. As a self-consuming type of
business, the expenses can be lessened because the transported or delivered of the products
from manufacturing plant are not needed. The quality of the product is also assured since it
produces own products. Consumers would be aware of the business existence through the
flyers and posters that would be distributed around the vicinity and other crowded place.

Promotion

Since the product is barely introduced to the market, introducing it through social media to
promote corn-rice mixture leads way towards the consumers to finally familiarize with the
manufactured good. It will be endorsed on its Facebook page, Instagram, and Twitter.
Implementing these promoting strategies can help the organization save from advertising and
marketing costs. Moreover, the business can also use flyers, tarpaulin and posters specifying
the different variations of the product.

PROMOTION EXPENSES

ITEMS QUANTITY UNIT COSTS MONTHLY ANNUALLY

Flyers 100 3 300 300
Tarpaulin 1 450 450 450
Posters 10 150 1500 1500
J. TARGET MARKET (Survey)

MALAYAN COLLEGES LAGUNA

Bachelor of Science in Industrial Engineering
Project Feasibility Study
Survey Questionnaire 1

Pangalan (optional) : _________________________________________

Edad : _________________________________________
Address (Barangay/ Bayan) : _________________________________________
Trabaho : _________________________________________

1) Ano ang limang patok na uri ng bigas na iyong binebenta? Pakisalaysay.

a) ____________
b) ____________
c) ____________
d) ____________
e) ____________

2) Bakit mabenta ang mga bigas na iyon?

 Tekstura (Texture)
 Abot kayang presyo (Affordable)
 Pangkalusugan (Health Reason)
 Lasa (Taste)
 Iba pa (Mangyaring tukuyin): _____________

3) Saan nagmumula ang bigas niyo?

 May tagatustos (Another Supplier)
 Sariling tustos (Own Supply)
 Parehas (Both)
 Iba pa (Mangyaring tukuyin): _____________
4) Sa isang buwan gaano ka kadalas bumili ng sako ng bigas? (wag sagutan pag sariling
tustos)
 Per Week
 Per Day
 Iba pa (Mangyaring tukuyin): _______________

5) Gusto mo ba masubukan mag benta ng ibang uri ng bigas?

 Oo
 Hindi

6) Tatangkilikin mo ba magbenta ng produkto ng Corn Hub?

 Oo
 Hindi
 MALAYAN COLLEGES LAGUNA
Bachelor of Science in Industrial Engineering
Project Feasibility Study
Survey Questionnaire 2

Pangalan (optional) : _________________________________________

Edad : _________________________________________
Address (Barangay/ Bayan) : _________________________________________
Trabaho : _________________________________________

1) Itsura ng Corn Rice mixture?

 Kaaya aya sa paningin
 Katulad ng ordinaryong kanin

2) Lasa ng Corn Rice?

 Masarap
 Matabang
 Maalat
 Mayroon “After Taste”
 Iba pa (Mangyaring tukuyin): _______________

3) Maihahalintulad mo ba ang lasa sa ordinaryong bigas?

 Oo
 Hindi

4) Saan mo maihahalintulad ang Corn-Rice Mixture?

 Sa mais
 Sa ordinaryong kanin
 Pinaghalong mais at ordinaryong kanin

5) Overall Comment:
__________________________________________________
__________________________________________________
__________________________________________________
__________________________________________________