FEASIBILITY STUDY
I.
EXECUTIVE SUMMARY
Sometimes a full-scale study cannot be justified because there are too many unknowns, or
because a critical piece of information is lacking.
In such circumstances a feasibility study may be warranted. A feasibility study is undertaken
before the real work to determine whether to proceed with a project and decide the best approach
to adopt. Feasibility studies can be extremely important in reducing uncertainties for planning the
definitive study, and often provide reassurance to funding bodies that the work has been
thoroughly thought through.s
Our business Queen Pitahaya Fruit Shake (Dragon Fruit) bears the vision of providing fun,
deliciously appetizing, uniquely enchanting food and beverage products while maintaining our
commitment to uncompromised quality at economical rates with a heartening purpose to cater to
societys needs, taste and preferences: rather than simply convincing our customers to try and
like whatever products we develop.
Dragon fruit contains much health benefit and uses, that is why we develop something that
will really help customers satisfied their needs and wants. Queen Pitahaya Fruit Shake keeps our
body healthy, inside and out.
Developing a new product for the public is never an easy undertaking. The number of new
products that actually make it is insignificant to the total numbers that are actually produced. We
as a student believe we have found one of those products that will make an impact and ultimately
be successful is a shake. The healthy shake will provide our customers with an almost endless
amount of healthy alternatives to the other drinks. This information will provide sales, costs,
profits, market, competitors, distribution, and the macro environment balance.
The healthy fruit shake will promise you customers to provide the quality, reasonably priced
product in industry. We aim for continuously generate awareness, interest and desire for our
product, resulting in frequent purchases by the customers.
II.
INTRODUCTION
A. Background of the Study
Dragon Fruit Shake has a delightful and pretty mild taste, not too sweet but just perfect to
appeal with the consumers taste buds. It is made from fresh dragon fruits, non fat milk, and green
stevia. Our product will offer numerous health benefits that are good for the body and will cater
the ever increasing demand for a healthy food and beverage choice, diets and losing weight.
Dragon fruit are among the many wonder fruits that are said to provide multiple health
benefits and include a whole array of nutrients, vitamins, fiber and anti-oxidants. It is best for all
diets because it has low calories and is rich in fiber that can help avoid constipation, improve
your digestive health and help you reduce weight naturally without health risk. Others call this
as a super food due to its powerful healing properties.
Non-fat milk which is also one of the ingredients of the product offers the goodness of milk
but minus the fat, which makes it an easy addition to ones balanced diet. It gives nutrition to
those who put importance to managing to control their weight and staying fit.
We use green stevia as a sweetener. It is an all-natural food supplement that is said to be 300
times sweeter than ordinary sugar. Proven by experts, green stevia has zero calories, zero fats,
zero sodium and zero cholesterol.
B. Name of the Enterprise
The name of the enterprise is one of the most important things that are needed in the
business. QUEEN PITAHAYA FRUIT SHAKE is the primary name of the business. PITAHAYA
originated from the word Hylocereus undatus commonly known as dragon fruit is among the
most nutritious and wonderful exotic fruits. Hylocereus undatus is one of the most popular and
cultivated cacti species of the genus Hylocereus, especially for the fruit industry while we choose
the name QUEEN because the 4 partners in the business are all girls. We create this kind of name
in our business because its easy to memorize or to familiarize by the customers, its unique name
and its our way to attract them and it could be a trademark for quality products.
C. Statement of the Problem
These days, consumers are considered as the king of the market. Their needs and demand
varies from time to time because of the changes in technology, fashion, tastes, behavior and
lifestyle. Consumers of today are becoming more conscious about their health so as to manage
health related concerns, thus consumers demand for a healthy food choice, diets and losing
weight.
D. Objectives of the Study
Stated below are the lists of objectives that this study is contemplating on pursuing.
1. To offer a healthy beverage that satisfies the fast changing consumer preferences for a
shake drink.
2. To be able to earn profit
3. To gain market share
III.
MARKETING PLAN
A. Analysis of the Customer Environment
There are groups of customers for our Dragon Fruit Shake and the needs are different from
segment to segment. It is primarily focused on segments including Kids, Adults, Health
Conscious, and the Youth market.
The table shows the segments for Dragon Fruit Shake.
Segments
Benefits
Demographics
Behavior
Psychographics
Adults
Nutrition
25-50
Nutrition
alternative
drinkers
Professional
Health
On the go
Taste drinkers
Price
Health
Conscious
Parents
Health
18+
Nutrition
Diet and Health Dieters
Conscious
Drinkers
low calories
Health
rich in fiber
vitamins,
minerals,
calcium
and
antioxidants
prevent
formation
cancer cells
manage
pressure
controls
the
of
blood
Long
oriented
life
Professionals
cholesterol levels
best for diets
Youth
Trendy taste
14-18
Taste drinkers
Tasty drinkers
Mobile
Not a child yet
not an adult
Possibly wanting
to drink what
adults drink but
without the adult
taste
B. Target Market
Primary
ADULTS: Between 25 to 50 years old age Professionals and parents
Become more conscious about their health
Preferred healthy beverage
Choose food and beverages that offers extreme health benefits rather than better taste
Concern with the price and quality of the product
HEALTH CONSCIOUS: Between 18 to up years old: Health professionals and people who
are conscious or want to improve their health.
Prevent sickness
Find solution to their health condition
Want to live longer
Dont care about the price
Secondary
YOUTH: Between 14 to 25 years old age.
Loves to drink cool stuff
Drink for style
Easy to be influenced by TV, magazine and online advertisement
Purchase cheap drink
Preference depended on fashion
C. Marketing Objective
Create strong consumer awareness for dragon fruit shake through our 4Ps
Meeting and satisfying consumer needs and wants profitably
To increase market share
Analyzing marketing trends.
Monitoring competition
Increasing positive perception among our customers
D. SWOT Analysis
Strength
Health benefits of the dragon fruit especially to those diabetic people
Clear vision of healthy products
First product introduce which is dragon fruit shake
Weakness
The dragon shake will place in selected malls particularly in Cavite
Offers small place unlike other similar stores
Opportunities
Nowadays, most people are shifting for healthy kind of living due to arising of much kind
of diseases and sickness
Opportunity to extend the dragon shake business because of the possible demand of the
people
Threats
Intense competition with both direct and indirect competitors
Unbounded changing of customers demand and preferences
E. Marketing Mix
Product
Dragon Fruit Shake is made from pure, fresh and naturally grown dragon fruits. We do not
use artificial sweetener but rather an all- natural sugar substitute. It has a delicious, creamy,
delightful taste. Each cup of our shake offers a lot of health benefits for our customers at an
affordable price thus, making their money worth spending on.
Place
Dragon fruit shake will be having its first store at food court of SM Dasmarias. We will not
place our store at roadside locations as we promote healthy beverage and we dont want our
product to be exposed on different toxins and smoke coming from the vehicles. We will operate
on a safe and clean environment.
Price
The business will use the Cost-plus pricing strategy to calculate for the price of dragon fruit
shake. The price will be set based on the production cost, including both direct and indirect cost
at our projected sales volume, and our standard mark-up. Our product is competitively priced and
is very affordable for consumers to buy. Taking into account the extreme health benefits our
product can offer, we are very sure that their money will be worth spending on consuming our
product and making it as a staple on their healthy diet.
Projected market price for Dragon fruit shake will start at:
P 26 for small;
P 40 Medium;
P 52 large.
Competitors Price
Zagu
Baby z : 30; Regular: 36 ; Grande: 42
Fruitas
16oz: 45; 22oz: 55; 32oz: 85
Queen Pitahaya Fruit Shake
Small:26; Medium; 40; Large: 52
Promotion (IMC strategy)
Sales Promotion
In- store Sampling will be conducting sampling program at SM
Dasmarinas supermarket and at the same time, giving away fliers and
encouraging them to visit and try to buy the product at the store located at the
foodcourt.
Exposition/ Trade fair join trade fairs to increase awareness of the
existence of our business. This would also give us the chance to showcase the
goodness of our product. We will have free taste of our product and we will
also sell our product if people would love to buy. We will also have the chance
to be seen and known by a lot of bloggers.
Public Relation
Social Media integration to social media can create dynamic,
measurable ways to engage the community and drive bottom-line results.
We will create fan pages on websites, such as Facebook, to start marketing
our product online. Often post interesting information about our product,
entertaining stories, comments to continually draw interest from
consumers. Place ads on Facebook to attract even more consumers to our
fan page. We could also have fun games, surveys, contests and customer
testimonials.
Direct Marketing (For future Direct Marketing efforts)
Television, newspapers and magazines will be use to advertise our product. Our
existence as well as the health benefits of the product will be the main focus of the
advertisement.
Television Shows catering sponsorship on Television Health Shows like
Salamat Dok
Newspaper advertisement on newspapers like Philippine Daily Inquirer
and Manila Bulletin will increase peoples awareness especially the
professionals
Magazine advertisement on magazines like Womens health and Mens
health is directly targeted towards the health conscious market. We will
also have advertisement on Candy Magazine. This will be directly targeted
towards the Youth market. All this direct marketing efforts can generate
awareness and induce them to try and purchase or product.
Feedback from Customers
Conduct focus group to analyze our product for future product development.
F. Investment Requirements
a.) Cost of Utensils
1 pc Fruit slicer 6 (stainless steel)
1 pc Can opener
1 set Measuring spoon (plastic)
1 pc Measuring cup (plastic)
1 pc Chopping board (anti-bacterial)
3 pcs Plastic bowl 26 @52.00
1 pc Spatula
278.25
68.25
36.75
57.75
89.25
163.80
58.80
752.85
b.) Equipment
2 units Blender (unbreakable, 350W) @1,295.00
1 unit Kitchen scale (0-1 kg)
1 unit Styrofoam cooler/ice chest (12x18x24)
1 unit Refrigerator (3 cu.ft. personal size)
2,590.00
293.95
228.90
7,875.00
10 987.85
11 740.70
c.) Raw Materials per 16oz cup (Small)
Dragon Fruit
1/8 cup of non fat milk
Green stevia
ice cube
8.33
1.00
1.75
0.50
11.58
Packaging:
1 pc Plastic glass
1 pc Straw
1.40
0.15
1.55
13.13
Raw Materials per 22oz cup (Medium)
Dragon Fruit
1/6 cup of non fat milk
Green stevia
1 ice cube
12.5
1.25
3.00
1.00
17.75
Packaging:
1 pc Plastic glass
1 pc Straw
1.40
0.15
1.55
19.3
Raw materials per 32oz (Large)
Dragon Fruit
1/3 cup of non fat milk
Green stevia
2 1/8 ice cube
16.67
1.50
4.75
1.50
24.42
Packaging:
1 pc Plastic glass
1 pc Straw
1.40
0.15
1.55
25.97
Add-ons*
Non-fat vanilla ice cream
Crushed chocolate cookies
G. Costing and Pricing
a.) Direct cost
Raw Materials per 16oz cup (Small)
Ingredients and Packaging
Raw Materials per 22oz cup (Medium)
Ingredients and Packaging
Raw materials per 32oz (Large)
Ingredients and Packaging
25.97
b.) Product pricing @ 50% mark-up
Selling Price = [(cost of the item)] / (100 - mark up)] x 100
Small
= [(13.13)] / (100 50 mark up)] x 100
= (13.13 / 50) x 100
= 26.26
Medium
= [(19.3)] / (100 50 mark up)] x 100
= (19.3 / 50) x 100
= 38.6
Large
= [(25.97)] / (100 50 mark up)] x 100
13.13
19.3
= (25.97 / 50) x 100
= 51.94
c.) Projected Selling Price
Selling Price
Unit Cost
Small
26
13.13
Medium
40
19.3
Large
52
25.97
Selling Price
Daily Projected
Daily Sales (php)
d.) Projected Daily Sales
Std.
Capacity
Small 16 oz
26
50 cups a day
1300
Medium 22oz
40
50 cups a day
2000
Large 32 oz
52
50 cups a day
2600
150 cups a day
5900
Daily Indirect Cost
Indirect Costs
Indirect cost
Labor cost
290 a day x 2 staff= 580 per day / 150 cups
per cup
P 3.87
Transportation
produced a day
14000 / 10 days (to maintain freshness; buy dragon fruit
P 0.31
every 3 days= 10 days in a month) / 450
cups produced in
three days
Water and Electricity
Rent
Contingency
780 / 30 days / 150 cups
P0.17
10% direct cost
P 1.31
P 10.1
X
Daily Indirect Cost
Daily Direct Cost
150 cups
P 1515
Small @ P 13.13 Unit cost
Medium @ 19.3 Unit cost
Large @ 25.97 Unit cost
50 cups produced
50 cups produced
50 cups produced
150 cups
Daily Sales
5 900
Less: Direct Cost
2 920
Less: Indirect Cost
1 515
Projected daily Income
Daily Direct Cost (php)
656.5
965
1298.5
P 2920
P 1 465
e.) Projected Monthly Sales
Std. and Selling Price
Projected Monthly Capacity
Monthly Sales (php)
Small @ P 26
1500 cups
39 000
Medium @ P 40
Large @ P 52
1500 cups
1500 cups
4500 cups
60 000
78 000
P 177 000
Monthly Sales
177 000
Less: Direct Cost
87 600
Less: Indirect Cost
45 475
Projected Monthly Income
P 43 925
f.) Projected Annual Sales
Std. and Selling Price
Small @ P 26
Medium @ P 40
Large @ P 52
Projected Capacity
18000 cups
18000 cups
18000 cups
54000 cups
Annual Sales
2 124 000
Less: Direct Cost
1 051 200
Less: Indirect Cost
Total Annual Income
545 700
P 527 100
Annual Sales (php)
468 000
720 000
936 000
2 124 000
H. Demand / Supply
Demand
This project would provide the target market mostly the health conscious between 18
years old and up, adults between 25 years old up to 50, those who are professionals and parents
and also the youth between 14 years old up to 25 who visited SM Dasmarias.
Supply
Based on our personal interview, the population of health conscious people who visited
SM Dasmarias wants to avail our product offering and thats where we determined our supply.
IV.
TECHNICAL ASPECT
Our management will provide cleanliness for everything, especially to our drinks for the
satisfaction of customers.
A. Projected Location Site
B. Production Flowchart
The production flowchart of the Pitahaya Fruit Shake is shown below. It consists of five
steps.
ACTIVITIES
DESCRIPTION
COSTS
Gather all necessary raw
materials needed in the mixing
process.
5,600
Preparation of tools and
equipments needed in the
mixing process
12,715
Grind the iced water
Combined the different
ingredients
Lastly, put the finished
product into prescribed
package and ready to serve
C. Proposed Layout for Pitahaya Fruit Shake
CR
EMPLOYEES LOCKER
STOCK ROOM
TABLE FOR
EMPLOYEES
OFFICE OF THE
OPERATION
MANAGER
DOOR
MIXING AREA
CHAIRS FOR THE
CUSTOMERS
CASHIER
DISPLAY AREA
ENTRANCE
D. Forms of Business
The Dragon Fruit Shake will be operated by 4 persons as partners. Dragon Fruit Shake was a
partnership business accounted as limited firm and owned by the following persons: Ma. Fe
Victoria N. Alano, Dyann Bucaling, Sharmaine Lyka P. Vecino, and Melody M. Ramos. The
business started with a capital amounted to 100,000.00 having equal contributions from the
owners.
E. Organizational Structure
The figure has shown the organizational structure of Dragon Fruit Shake which composes an
Operational Manager, Bookkeeper Personnel, Marketing Personnel, and Financial Analyst which
all of them contributed to the company.
Operational Manager
Bookkeeper
Cashier
Sales Personnel
Operational Manager is an area of management concerned with overseeing,
designing, and controlling the process of production and redesigning business operations in the
production of goods or services. It involves the responsibility of ensuring that business
operations are efficient in terms of using as few resources as needed, and effective in terms of
meeting customer requirements. It is concerned with managing the process that converts inputs
(in the forms of materials, labor, and energy) into outputs (in the form of goods and/or services).
Bookkeeper in the context of a business is simply the recording of financial
transactions. Transactions include purchases, sales, receipts and payments by an individual or
organization. Many individuals mistakenly consider bookkeeping and accounting to be the same
thing. This confusion is understandable because the accounting process includes the bookkeeping
function, but is just one part of the accounting process.
Cashier the officer of a bank or business concern in charge of paying and receiving
money and handles cash transactions with customers.
Sales Personnel refers to those who work as part of the sales team either in a retail
store, call center or individually from home. Sales personnel are employed to sell to other
businesses or to individual consumers. Working in sales can be demanding or stressful, as much
of the role involves working toward sales targets.
Sources of Literature
www.pinoybusiness.com/food-business/starting-a-fruit-juice-and-shake-business/
www.quennsland.qld.gov.au/industry/food/food-innovation/innovative-food-beverageproducts/healthy-foods-biodegradable-packaging
www.tutor2u.net/business/marketing/pricing_cost-plus.asp
bizfinance.about.com/od/pricingyourproduct/a/Pricing-your-product-using-mark-up.htm
kimberlysnyder.net/blog/2013/01/08/superfruit
casaveneracion.com/dragon-fruit-shake/
prezi.com/k9oj8jyers1/feasibility-study/
www.greenstevia.com.ph
thenutritionguruandthechef.wordpress.com/2012/05/13
www.cookinglight.com
www.fruitasgroup.com
www.cavite.go.ph/home/index.php/investment/cost-of-doing-business/minimum-wage
Belch (2003). Advertising and Promotions. The McGraw-Hill Companies
Kotler et.al (1999). Principles of Marketing. New Jersey, USA. Prentice hall
