Professional Documents
Culture Documents
The success of this feasibility study would not have been achieved without the support
received from Mrs. Jennifer A. Mendoza, CPA, our Management Consultancy Services Adviser.
We thank you for the guidance and patience. We will remain forever indebted to you.
To our parents, thank you for your assistance and guidance throughout the duration of our
study.
To the other groups, thank you for being such a wonderful research associate. You guys just
know how to make things happen. And you really ensured a smooth ride for us.
Above all, thank you, Almighty Father for the unconditional love and endless blessings you
have bestowed upon us.
Lastly, we would like to thank the 98 respondents who gave us their time to answer the
questionnaires we had provided and giving us the information relevant in the conduct of our
feasibility study.
This was indeed a worthy study, and we hope that the outcome can be used as a reference
by future researchers. We also hope that the business can cascade into a great success.
The Researchers
Project Background
Food dominates the life of the Filipinos, and that is undeniably true. People here just love to
eat. And at present, food doesnt seem to confine only the purpose of necessity anymore; food has
now become a basis of the Filipinos social life, thus, becoming a trend especially for the so-called
millennials not to forget to mention, them, growing up with the influence of social media. Filipinos
have always had a knack for something new, something different - so for the past years variety of
trends have entered the Filipino Food Industry, ranging from international franchise food concepts to
fast foods to food culture variations. Almost everything has become a sure hit. So despite the
dwindling economy in our country the food industry still manages to keep afloat and even manifest a
remarkable growth for the past five years.
Two of the most remarkable trends that have been buzzing in the Metro for quite some time
now are the emergence of Burger Shops and Ice Cream Parlors; and we are here to give Iriga, a taste
of these delights in one sitting - with a fully personalized twist.
Iceburg Diner will give its customers a dining experience they never had before- offering a
variety of Burger Menus and Ice Cream Mixes with a touch of different influences, flavors and sizes. We
will make sure that every penny spent will be worth the taste. And with an upscale and cozy
atmosphere We intend to provide a venue in which the customer can relax and at the same time enjoy
their leisure time whether alone, with the family or with the clique.
Here in Iceburg Diner, aside from the tasteful dishes that will be offered we will also let the
customers fully customize their burger experience for a more special eating. They can choose from the
variety of Burger ingredients that we have, from the buns to the patties, to the toppings and up to the
sauces, it is all in the customers call. Creativity and Diet is the limit. On the other hand,
complementing the savory relish of our Burgers, are the myriad of Ice Cream flavors that We offer. We
have thought of different sorts of mixes that will surely satisfy the customers sweet tooth cravings
whether of a child or of a young at heart. And just like what we offer on our burger, your Ice Cream is
also fully customizable. You can be your own Ice Cream artisan.
Iceburg Diner is to be located in the Everest plaza, one of the newest Commercial Building in
Iriga and a good location for trade, especially for a fast food chain because its a breath of fresh air
among the non-fast food chains that's already established there. Over the past five years, there has
been tremendous population growth in the whole City. Yearly, Irigas population is growing 1.8%
percent. To date, there are 113, 798 people in the citys vicinity and almost 53.6% of this population
lives in the urbanized section of the city. Moreover, 51.2% of this population is made up of young
adults, whose ages are between 0 and 19 years old. The latter will be our target market but we are not
limiting our service only to them. (iriga.gov.ph)
The hamburger industry nowadays is nothing like as it was before. Hamburger franchises have
spread their ways across the nation and continue to find innovative ways to turn their customers into
loyal burger-fanatics, same goes with the Ice Cream Parlors. Consumers are hungry for more ways to
"fit" quality food in their busy schedules. The demand for flavor variety, healthy alternatives,
accessibility and ordering options, and unique eating experience has always been a challenge for the
industry players all these we can offer. By providing the best food and service that can be offered,
our management team expects to reach an even broader market than what we used for our cash flow
projections.
Nestle, Selecta-Walls, including local brands like Magnolia and Arce. Some supermarkets also carried a
limited range 9f Ben & Jerry's. In pocket outlets thrived the gelattos & ice cream artisans. Today, the
artisans are making a name for themselves with flavors like sea salt caramel, strawberry balsamic, and
blue cheese. Sebastian's, Dolce Vita, Carmen's Closet --- they and other ice cream artisans have
carved their own niche alongside the big player brands like Magnum, Kit Kat, and Whoppers. The local
ice cream known as "dirty ice cream" is enjoying a resurgence as well. Take it in a cone or stuffed in
pan de sal like a sandwich. At the rise of ice cream as a popular food, several ice cream parlors
became evident along every principal street and park.
Popularization of American food such as the ice cream (which were new for the 20th centuryFilipinos) tried to manifest their intentions of imparting their culture to the colonized population. Since
food embodies a lifestyle, by subscribing to what the colonizers introduced at that time, the lifestyle of
many Filipinos was gradually influenced and changed by the Americans. Nonetheless, no matter what
their intention was, we surely benefited from the flavors and delightful experience it served our taste
buds. (M. San Martin)
So far, there were no Burger Diner and Ice Cream Parlors established as one, yet, in Iriga
City.
Feasibility Study
AUTHORS:
Bachiller, Kevin G.
Lucena, Lea Sherelynne B.
Marinda, Raymond John
Neri, Princess Korine Dv.
Paz, Rustom
Turiano, Mary Anne I.
TITLE: ICEBURG
ORDERING PARTY:
Mrs. Jennifer A. Mendoza, CPA
Financial Possibilities
TRANSPORTATION COSTS
P300.00
PRINTING COSTS
P500.00
P500.00
TOTAL
P1,300.00
CONTACT #: 09073530656
CONTACT #: 09052259962
ROLE: Researcher
ROLE: Researcher
CONTACT #: 09308118007
ROLE: Encoder
CONTACT #: 09159624162
ROLE: Researcher
CONTACT #: 09499796213
ROLE: Researcher
CONTACT #: 0909041340
ROLE: Encoder
ECONOMIC ASPECT
Calculate the costs that will be incurred in the normal operating cycle
Calculate the expected profit after deducting all the expected costs
The preceding problems must be properly discussed and all data and information
regarding the problems should be gathered and analyzed. These will help to have a
clear decision about the study of the project.
MARKET SURVEY
Market surveys are important to find out the existence of the demand for a
product and its viability. The calculation of market size and value should not be
assumed to represent the scale of production that would be expected. The
existence of competitors should be considered most especially by a newly formed
business and find out the estimated proportion of the total market that the business
can reasonably have.
There will always be an unending competition in the business world. Competitors
must be taken into account because they can bring adversity if they are overlooked.
Competitors may take the form of your business but sometimes they can also be
producing different product compared to your business, that is why examination of
competitors must be comprehensive and it should not just be limited to
establishments producing or doing the same business as you are or planning to be.
SWOT analysis will be of great help in assessing the competitors market
penetration. It will help us to assess the Strength, Weaknesses, Opportunities and
Threats in the market of an existing competitor. As a result, we will be able to
compare our potential product to the branded competitors.
B. TARGET SEGMENTATION
The University of Saint Anthony Registrar Office showed that it has a
population of 6,052 in s/y 2015-2016. From this population, 45.69% are
College students (age ranging 18 years old above), which happens to be our
primary target market.
Type (Age)
Percentage
Grade School (14 below)
20.09%
High School (15-17)
34.22%
College (18 and above)
45.69%
Table Market Segmentation
Numerical Value
1,216
2,071
2,765
Our success will be based on our ability to become known within the
community. We must focus on the specific market segments whose needs
match our offerings. Focusing on targeted segments is the key to our future.
Therefore, the focus and marketing message will be the services offered.
Once the message is developed, it will be communicated and fulfilled.
Residence
Riga
Nabua
Baao
Bato
Buhi
Albay
Total
No. of Respondents
Percentage
46
46.94%
33
33.67%
9
9.18%
4
4.08%
5
5.10%
1
1.20%
98
100%
Table 1- Respondents as to residence
Age
No. of Respondents
Grade School (14 below)
0
High School (15-17)
20
College (18 and above)
78
Total
98
Table 2- Respondents as to age
Percentage
0%
20.41%
79.59%
100%
Gender
Male
Female
Total
No. of Respondents
56
42
98
Table 3- Respondents as to gender
Percentage
57.14%
42.86%
100%
Status
Student
Already working
Married
Out of school
Total
No. of Respondents
82
7
7
2
98
Table 4- Status of Respondents
Percentage
83.67%
7.14%
7.14%
2.04%
100%
Frequency
Everyday
Every other day
Once a week
Once a month
Seldom
Total
No. of Respondents
0
13
46
23
16
98
Table 5- Frequency of visit to diner
Percentage
0%
13.26%
46.94%
23.47%
16.33%
100%
Answer
No. of Respondents
Percentage
Weekdays
40
40.82%
Saturdays
28
28.57%
Sundays
30
30.61%
Total
98
100%
Table 6- Respondents who mostly eat on a diner in a days of the week
Answer
Yes
No
Total
Amount
50-60
No. of Respondents
Percentage
90
91.84%
8
8.16%
98
100%
Table 7- Respondents who like Burger
No. of Respondents
67
Percentage
68.36%
61-70
10
71-80
6
81-90
4
91-100
3
101 and up
8
Total
98
Table 8- Amount willing to spend for Burger
Answer
Yes
No
Total
10.20%
6.12%
4.08%
3.06%
8.16%
100%
No. of Respondents
Percentage
95
96.94%
3
3.06%
98
100%
Table 9- Respondents who like Ice Cream
Answer
No. of Respondents
Percentage
Yes
68
69.39%
No
9
9.18%
Depends on the kind
21
21.43%
Total
98
100%
Table 10- Respondents who like toppings in Ice Cream
Amount
No. of Respondents
Percentage
30-40
81
82.65%
41-50
3
3.06%
51-60
1
1.02%
61-70
4
4.08%
71-80
2
2.04%
81 and up
7
7.14%
Total
98
100%
Table 11- Amount willing to spend for an Ice Cream
The respondents had written down their perfect partner for their
burger and it turned out that Fries is the best choice of our respondents.
Following by the Pasta, Salad and Chips, Onion Rings and Others are close
second to sixth, respectively.
Others; 2%
Chips; 12%
Pasta; 24%
Salad; 13%
Fries; 43%
Onion Rings; 7%
Respondents had also choose their favorite flavor for their Ice
Cream and it results that Chocolate flavored is the first favorite of our
respondents. Secondly by the Nuts flavored followed by the Coffee flavored,
Fruit flavored and lastly by Others (includes cookies and cream, chili
flavored, vanilla and mocha).
Chocolate Flavored
Coffee Flavored
Fruit Flavored
Nuts Flavored
Others
With regards to the purchase decision making, the respondents ranked from
1-5 (5 represents the least) the most Important attribute that affect to their
purchase. As the results, Amount of food are the lowest percentage, It means
that the amount is the most important for the respondents to their buying
decisions.
Speed; 23%
Variety; 20%
Location; 23%
Atmosphere; 19%
Amount; 14%
Target Market
Students
Already Working
Married
Out of School
COMPETITIVE EDGE
Iceburgs services will be positioned to provide customer with a unique and
trendy food experience:
MARKETING STRATEGY
In the context of the marketing mix, promotion represents the various
aspects of marketing communication, which is, communicating information about
our business with the goal of generating positive customer response. Advertisement
and promotion forms a major role to attract customers to patronize our business
and the variety of foods we offer.
The proponents has decided to make use of organized gimmicks in
promoting our business to the market.
The companys marketing strategy is focused on establishing our brand and
promoting our image through a variety of marketing channels. This is an overview
of our general marketing strategy which includes:
Public Relations. As owners, we will promote our business and its benefits to the
community through the mass media. We will have articles to be publicized on local
magazines and newspapers as well as rotational airing on local radio stations and
television programming. Potential media outlets include:
DWEB FM 99.9
Vision Cable TV Network
USANT FM
Events. Special events, including our grand opening and special holiday parties,
will be promoted to increase our presence and popularity on the community and to
attract first timers and infrequent visitors and customers.
Internet and the Social Media. Aside from the use of the mass media as a
communication and marketing channel, the immense coverage of the internet as
well as the popularity of social media will also be used for promoting our business
as well as connecting with our valued customers. A special website will be created
to accommodate both suggestions and complaints from our clients and customers.
Aside from it promotional activities, such as special offerings and the likes will also
be posted on our website and social media pages. Among the most popular social
media which we will be using for promoting our brand includes:
Facebook
Twitter
Instagram
Tumblr
MARKETING STRATEGY
Our target market will be broad, coming from different age level, people from
all walks of life, and whether residents of the area or not. This is why our marketing
plan started with the construction phase; by keeping in mind that, if it looks
unique, trendy and cool people will come. Thus, the main factor to our business
success is simply that people can enjoy themselves in our premises by giving them
the freedom to choose the presentation of their burgers as well as the liberality of
letting them select the flavors of ice cream they wanted. But for purposes of
estimation and forecasting we will limit our market to student with an age bracket of
0-30.
Our full-time public relations officer or sales manager is a vital part of our
management team, by assuring that customers satisfaction is provided and to be
able to gather information from the public about the quality of service they most
desire. This can provide our company with the means to stay in touch with the
community and be fully ready in meeting their demands.
PROMOTION STRATEGY
Iceburgs first means in promoting our business establishment is through
Word of Mouth.
Word of Mouth advertisement serves as the cheapest form of promotional
activity which will not cost a business a single penny at all. But this medium can be
both helpful and destructive.
Another cheap form of advertisement is through the use of the internet as
well as popular social media sites. Aside from the well-known fact that promoting on
social medias costs nothing we will be able to promote our business to a wide range
of users which are all potential customers.
Our last means of promoting our brand is through the use of the mass media,
like airing our advertisement to local radio stations.
Advertising
Getting our positioning message to the public, a unique way to enjoy your
burgers and ice creams, a place where you can change your eating habit from a
boring and dull one to extremely cool and fun.
SALES STRATEGY
The proponents strategy is simple; they intend to succeed by giving
customers a combination of a new and appealing business arrangement in a
competitive environment with excellent customer service. Our marketing strategies
are designed to attract both critics and initial customers into the business.
We will ensure to provide our customers with the best value of service and
food quality on every penny they will be spending. Our customers will get what their
moneys worth. Our marketing team will ensure the effectiveness of our marketing
program. By doing this we can expect an even broader market.
Our sales strategy is set on the very basics of business, that is to be able to
please our customers give them what they came for, meet their expectations and
demand, then they will start to patronize Iceburg and they can even encourage new
customers.
SALES FORECAST
Sales as per targeted population
Using our minimal targeted market population of 6,052, we can now compute our
yearly targeted income goals:
Frequency
Percentag
e(a)
Everyday
Every other
day
Once a week
Once a
month
Seldom
Total
Targeted
Customers
C= (a x b)
0%
13.26%
Targeted
Populatio
n
(b)
6,052
6,052
Daily Customers
0
803
803/15= 54
46.94%
23.47%
6,052
6,052
2,841
1,420
2841/4/7=101
1420/30=47
16.33%
100%
6,052
988
6,052
988/45= 22
224 customers
The amounts that our daily customers are going to spend for our
burgers were based from:
Amount
Daily
Customers
(b)
224
Customers
Preference
C= a x b
153
Customers
50-60
Percenta
ge
(a)
68.36%
61-70
10.20%
224
22
50% Sliders
71-80
6.12%
224
14
81-90
4.08%
224
50% Regular
Burger
Regular Burger
91-100
3.06%
224
Regular Burger
101 and up
8.16%
224
19
Customized
Burger
Total
100%
Sliders
The amounts that our daily customers are going to spend for our side dishes
were based from:
Percentage
French fries
Onion Rings
Chips
Salad
Pasta
Others
TOTAL
43.00%
6.00%
11.50
12.50%
24.00%
3.00%
100%
Daily
Customers
224
224
224
224
224
224
Customers
that will order
96
13
26
28
54
7
Sales from Ice Cream was set to be at 44.64% of our daily customers
(224 x 44.64%= 99.9936 or 100 persons)
Year 2
Customized
Burger (Beef)
P
3,610,8
00
P
1,224,0
00
P
945,000
P
3,886,61
2.5
P
1,317,33
0
P1,017,0
56.25
Customized
Burger (Chicken)
P208,80
0
P
224,721
Pasta
P
874,800
Onion Rings
P
140,400
1,238,4
00
1,080,0
00
P
941,503.
5
P151,105
.5
P1,332,8
28
P
1,162,35
0
Regular Burger
French Fries
Ice cream
TOTAL Receipts
P
9,322,2
00
P
10,033,506.
75
Year 3
Year 4
Year 5
P
4,182,966.
7
P
1,417,776.
4
P
1,094,606.
79
P
241,855.9
8
1,013,293.
14
P4,501,917.91
4,845,189.
16
P 1,525,881.86
1,642,230.
36
P 1,178,070.557
1,267,898.
44
260,297.49
280,145.1
784
1,090,556.74
1,173,711.
70
162,627.2
9
1,434,456.
14
1,250,979.
19
175,027.62
188,373.4
8
1,661,550.
72
1,449,026.
79
1,543,833.42
1,346,366.35
P
10,798,56
1.64
P
11,621,951.9
6
P
12,508,125
.8
Production Program
Iceburg will be operating seven days a week on a twelve (12) hour basis from
9:00 a.m to 9:00 p.m. We have gathered that our prospective customers usually eat
out on weekdays and most likely to eat out also on weekends.
Here is the list of Burgers, Ice cream mixes and other menus that we offer:
The Burger Menus and Mixes that we offer are not limited to the above list. We are
planning to expand every year depending on the demand of our target market.
Our establishment will be observing the regulations set forth by the City of Iriga
including the regulations about proper waste disposals and air pollution. As to abide
with the no plastic rule in Iriga we tend to minimize our plastic usage by using
washable utensils more than disposable ones which we are going to use only on
take-outs. Proper segregation of wastes will, of course, be observed.
Plant Capacity
The total area of our establishment is. This will comprise (3) Round Tables
with (4) Round Chairs each, (2) Long Tables with (2) Long Chairs on each side, (1)
Counter, (1) Storage Room, (1) Working Area, (1) Comfort Room, (1) Office.
Location and Site
Being in the right business situs is a crucial ingredient in a businesses
success, it is a massive factor that is considered when starting a business and it is
vital to get it correct the first time, otherwise, risk of business failure heightens.
It is surprising what can attract a business. A location that offers high income
residents is good for high end retail. Communities with colleges and secondary
schools can help provide part-time clerks and office staff. That is why it is rather
essential that the composition of the surrounding community is to be understood,
business owners and managers should always perform due diligence including a
study of the communitys demographics before deciding on where to put up.
Therefore, without a demographic analysis, the business will not truly understand all
the benefits and offerings of the area as well as the competitive environment of a
location tested and proven.
Business locations are often characterized by their push pull effects. Push
factors of a commercial location include elements that impact the operation of the
enterprise. These might include factors that increase the cost of goods like higher
With these aspects considered, a project feasibility study can surely assist in
the determination of a highly feasible market and strategic business location, thus,
eliminating risks of faulty business settlement which can have an obvious
detrimental effect on the venture. Through the use of a proven and thorough
methodology of site inspection, field works, competition analysis and geodemographic and geo-socioeconomic-lifestyle analysis combined with our project
experience, knowledge and research and the performance of existing Burger
franchises and Ice cream parlor the settlement will not only serve the business per
se but also the customers and the employees the right way, the most profitable
way.
Iceburg will register its business in the city government of Iriga where it will
operate. The business will comply with the requirements needed to legalize its
operation. The business will ensure to complete all the requirements and pay taxes
of its operation.
The establishment of this business is expected to not only provide Irigueos
with an avenue for a more special eating but also to provide socio-economic
benefits through the contribution or revenues remitted to the local government as
well as to provide employment to people possessing skills but are unemployed.
Hiring them will help the nation to decrease the number of unemployment. Also,
these employees will continuously improve, share and develop more their skills and
knowledge.
Geography
Iriga City, a third class city in the province of Camarines Sur, Philippines is
located 400 kilometers (250mi) southeast of Manila, and about 61kilometers (38mi)
north of Legazipi. It is bounded by the town of Buhi in the east, by the municipalities
of Baao, Nabua and Bato in the west, by the province of Albay in the south, and by
the Municipalities of Ocampo and Sangay in the north. The City of Iriga has a total
population of 105, 919 according to the National Population Census. The city
population accounts 2.87% of the total provincial population of Camarines Sur.
Road Network
A small central bus terminal was constructed in the city center to accommodate
buses, shuttles and jeepneys going to manila and neighboring cities. For the city of
Iriga, transportation is very much important because of (1) its strategic location and
membership in the Legazpi-Nabua-Naga- growth corridor; and (2) preferred
development strategy of agro-industrial commerce and tourism. Thus, enhancement
of the city transport system would play crucial role in the attainment of the desired
development.
Telecommunication
Iriga City is served with several nationally operating telecom companies: Digitel,
Bayantel, PLDT, Smart, Globe and Sun Cellular maintain major operations in the city.
All of them offer phone and internet services. A few local cable TV operators
dominate the cable TV market. Iriga city is also the center of communications, they
are GMA TV 13 Iriga, Solar News Channel 190 and ABS-CBN Corp. 2 also proposed to
construct a relay station in the city probably on a UHF channel is also planned to set
up a 10 KW UHF relay station here.
Cost Estimate
Based upon the concept plans, a preliminary cost estimate will be developed that
includes all cash outlays required until opening to the public. These costs include:
Renovation
Purchase and installation of furniture, fixtures and other equipment
Start-up inventory and Prepaid Deposits
Soft Costs
2.
3.
4.
5.
Legal Costs
Particulars
Fire inspection Fee
Mayors Permit
Sanitary Fee
Garbage Fee
Clearance Fee
BIR
DTI
Zoning Clearance
Total
Amount
P
100.00
300.00
150.00
100.00
80.00
850.00
700.00
80.00
P
2,360.00
Utilities
The supply of water, electricity and payment of the space tent will be used in the
production site for the usage at water and electricity.
Description
Space rent
Electricity
Utilities (water, telephone,
internet)
Total
P
17,000.00
P
204,000.00
23,988.00
MACHINE
PRICE
IMAGE
(NOTE: Actual unit
may vary from
pictures shown.)
DESCRIPTION/SPECIFICATION
P
25,600
Gas Stove
P 6,105
LPG
P1,200
Net Weight: 22 kg
Airconditioner
P
31,998
Performance
Energy Efficiency
EER (Cooling, Btu/W)9.23
EER (Cooling, W/W)
2.71
Moisture Removal (l/hr)
2.4
Noise Level
Indoor High/Low
41 / 33dBA
Outdoor High
52dBA
Chest Freezer
P 19,950
Refrigerator
P 28, 498
GE GMV100BAYRATop Freezer
238 Liters
P 11,997
32 inches
Home Dashboard
Premium Content
Yes
App Store
Yes
Full Web Browser
Smart Share Plus
Yes
Skype Ready
Smart Phone Remote Support Yes
LG TV
3.0
Yes
Yes
Style:
Hot Rod Chevie
Model:
Hot Rod
Material:
Vinyl
Country/Region of Manufacture:
United States
Diner Booth
Set
P 41, 960
Round Tables
P 8,305
P 2290
Stool
Ceramic
Plates
Digital
Weighing
Scale
P 50
each
Material: ceramic/porcelain
Color: natural
Eco-friendly
Dimensions:
30.5 x 10.5 x 2.5cm
33 x 10.5 x 2.5cm
38.5 x 13 x 3cm
41 x 13 x 3cm
48.5 x 13 x 3cm
P 350
Lime Glass
P 20
each
Spoon and
Fork
P 39.95
each
Ice Cream
Scooper
Food
Processor
Blender
P 600
(set of 2)
Stainless
Silver
Material:Stainless Steel
Color: Silver
Scoop Extra Deep:6cm
Length: 23.5cm
Size:23.5x6cm/9.25x2.36Inch
Weight:252g
P 3,195
P 2,390
Juicer Extractor
220V-60Hz
500W
Built-in safety lock
Overheating protection
Easy to use
Kitchenware
Packaging
for To Gos
P 2,606
(set)
P 3,200
(set)
Paper Cups
Burger Clamshell Boxes
French Fries Holders
Burger Wrapper
Brown Bags
Plastic Spoons
Straws
2
2
10
50
2
25,600.00
31,998.00
6,105.00
1,200.00
19,950.00
22,599.00
11,997.00
15, 400.00
83,920.00
16,610.00
22,900.00
2,500.00
700.00
Lime Glassware
Spoon
Fork
Ice Cream Scooper
Food Processor
Blender
Kitchenware
Packaging for To Gos
Total
50
50
50
2
set
set
1,000.00
1,997.90
1,997.90
600.00
3,195.00
2,390.00
2,606.00
3,200.00
P 278,465.80