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MANUEL S. ENVERGA UNIVERSITY FOUNDATION CANDELARIA, INC.

Quezon, Philippines

CocoBano Ice Cream: A feasibility study

A Research Proposal submitted to the Faculty Members of

Senior High School Department,
Accountancy Business and Management
Of Manuel S. Enverga University Foundation, Candelaria, Inc.

In partial fulfillment of the requirements for the

Accountancy, Business and Management

Submitted by

Adona Carolyn
Atienza Diseree Amor
Caalam Cassandra
12-Antares
September 2019

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Table of Contents

Rationale

Every year, people aging from 30-70 die from non-communicable diseases (NCDs).

In 2018, The World Health Organization (WHO) stated that the most effective and affordable

way of preventing NCDs is the reduction of salt and sugar, elimination of trans-fats and

reformulation of food products to make them conducive to a healthy diet.

The researchers then decided to create products which could help one achieve mental

and physical growth, develop a healthy lifestyle and prevent these illnesses. The group aims

to improve the dietary habits of people in all ages when it comes to eating food. The

researchers want to make people be satisfied on their way of eating by having them choose

healthier yet delicious foods. The focus of this study is to create food with nutritional

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contents for them to have great potential in improving their diet and health and access to

good nutrition, healthy foods, and opportunities to make healthful choices are key to

advancing health equity.

Mission:

The enterprise is engage into providing a product with pure ingredients at a reasonable price.

Their mission is to make and serve a delicious and healthy product such as the "Cocobano

Ice cream" as a delicacy offering alternative solutions to human health care needs.

Vision:

The CocoBano Ice cream envisions itself as one of the leading food producers in the food

industry serving nutritious and outstanding quality of products and services. The product

shall be an alternative for foods that are unhealthy and must ensure that it would contribute to

a health conscious society.

Goals and Objectives

These are the defined objectives of the CocoBano Ice cream:

• To be a well-known maker/producers of healthy Ice cream.

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• To give a new flavor of Ice cream.

• To increase the demand of healthy products in the market thus promoting a healthy type of

living.

• To improve nutrition among people through making desserts with nutritional contents.

• To provide a safe, enjoyable and health promoting environment for the consumption of

food.

A. NAME OF THE ENTERPRISE

Having a good name for a business constitute a valuable role especially that it plays

important factors regarding the attraction of the possible consumers. The proponents decided

to came up with a business name “Cocobano". An ice cream that gives the taste of nature! A

world of flavor freshly made from Guyabano and Coconut that surely give health benefits to

their target customers. "CocoBano" was derived by the product's ingredients Guyabano and

Coconut. This has become the basis of the name of the enterprise since it is purely made by

Guyabano and Coconut. The entrepreneurs meticulously thought of a compound name that is

appealing and easy to recall in the memory of the customers.

B. LOCATION

One of the important factors that one should consider in putting up a business is choosing a

best location. In choosing the location, one should foresight factors like local competition,

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demographics and the state value in order to emplace the best and profitable location that

they can have.

The "Cocobano Ice cream" will be located at Malabanban Norte Candelaria, Quezon. This is

where the product will be made and prepared. It is just in front of Manuel S. Enverga

University Foundation Candelaria Inc. where students can notice the stall instantly. Some

place in front of the said school is still vacant and the researchers decided to rent the

unoccupied space in that place. The researchers also conceive that the expenses regarding

transportation would be lessen for the place is near in the market and is accessible for the

availability of raw materials.

C. DESCRIPTIVE DEFINITION OF THE PROJECT

1. Related National Program

In 2018, The World Health Organization (WHO) stated that the most effective and

affordable way of preventing non-communicable diseases (NCDs) is the reduction of salt and

sugar, elimination of trans-fats and reformulation of food products to make them conducive

to a healthy diet. The project will help WHO (World Health Organization) seeks protection

and promotes healthy nutrition. Their main objectives is the attainment by all peoples of the

highest possible level of health and this project contributes to the production of reformulated

foods with contents that are nutritious thus helping the said organization. The enterprise

would also benefit the DOH (Department of Health Organization) as being one of the

regulators and provider of health goods and services and DTI (Department of Trade and

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Industries) for it offers consumer access to safe quality goods and services that also increases

the competitiveness of industries in the Philippines.

2. Affinity to Regional or Sectorial Studies

The owners could say that the findings in certain regions and sectors have encouraged them

in coming up with this kind of business. It has been known that people from Candelaria,

Quezon is popular with food industries, in connection with this, the researchers decided to

put up with a product which is in-line with food. The project is also a result of encouraging

findings that is trying to emphasize the importance of consuming healthy foods and the

benefits of it in someone's body that drives the entrepreneurs to try something new in the

food industry.

3. Project Potential and Proponents

It is undeniably that every businesses primary objective is the maximization of their

profit. The CocoBano will function to the best of its ability in order to achieve the realization

of the goal. It hopes for a stable status in the food industry by introducing a distinctive ice

cream production offering high quality and natural ingredients. CocoBano could greatly help

the government's employment and taxation and also contributes to the idea of promoting

foods with nutritional contents that is not too expensive.

The aim of CocoBano is to make a great portion of demand for nutritional ice cream

in the market and the appearance and taste should be taken into account for these takes a very

crucial role in attaining the success of the business.

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D. PROJECT’S LONG RANGE OBJECTIVES

The CocoBano Ice cream looks forward to be the most competitive business in

Candelaria, Quezon. The objectives of this business is to establish Cocobano as a popular

dessert to the public. It also aims to improve in operation, size, and customer’s satisfaction at

its very first establishment. The enterprise should also have nationwide branches accessible

for all people and thus continuously produce and promote healthy and eco-friendly products.

The business also looks forward to reach a goal of not just being an ice cream parlor.

They intent to expand into new opportunities and business industries. CocoBano aspires to be

the one of the known go to shop providing delicacies with nutritional contents for the next

coming years.

FEASIBILITY CRITERIA

To access the profitability and feasibility of the creation, various factors are carefully

studied and evaluated objectively.

It have been determined that the most feasible and profitable product in the market

today is food. Therefore, the researchers consider this understanding and was set as a primary

account in attaining the feasibility study.

The business is feasible through the following criteria:

1. Provides outstanding quality service and product.

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The business will assure the worth and satisfaction of the given products and services

consumed by the customers. The business also has a unique strategy that will give the

enterprise a competitive advantage.

2. An adequate physical facility has been designed and a good location has been found.
The distance of the proposed project from its competitors as well as its supply

of raw materials is in the vicinity thus results to a great competition and a hassle free

acquisition of the needed raw materials for the business.

3. The business have an adequate financial resources to cover all the costs of its venture.

This section provides the potentiality of the business to undergo through different

finances as time passes by. The financial resources for the business have been found and is

expected to have financial benefits from its operation. If the cost goes up during

implementation, the business would add up additional financial resources.

4. There is sufficient demand to support a new business entering this industry.

The researchers pinpoint the specific customers who are willing and able to buy the

proposed product. This is done through segmenting of the market geographically and

demographically. This segmentation helps organizations understand consumer behavior

accurately that in turn helps them perform better.

5. Availability of raw materials.

Raw materials play an important role in the production process to a great extent as the

success of the business venture. A major factor affecting availability, delivery, and price is the

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geographic origin of the raw materials and the researchers are delightful that the location is

near at the available acquisition places for the business’ raw materials.

F. HIGHLIGHTS OF THE PROJECT

1. History

Currently, Filipinos are subject to food that are unhealthy resulting to them lacking of

the require nutrients needed to ensure the wellness of their body. They consume more

artificially made food products over choosing advantageous ones. In connection with this, the

entrepreneurs are drive up with an idea of creating a food that is beneficial in so many

aspects. These aspects push them to create ideas that could help provide solution to the

current food related conflict in the food industry.

The researchers made this product for the purpose of serving their valued customers a

new dish with new flavor that everyone will enjoy especially the adults and the young ones.

It is an ice cream that has special ingredients which is the coconut and guyabano. It

promotes a healthy and convenient way of eating by introducing a healthy dessert to the

public consumers.

2. Project Timetable and Status

Table 1. Project Timetable Status

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1st month 2nd month 3rd month

Business
MANUEL
Activities S. ENVERGA UNIVERSITY FOUNDATION CANDELARIA, INC.
1 2 3 4 1 2 3 4 1 2 3 4
Quezon, Philippines

Business
Planning

Selection of
Location

Arrangement
of Capital

Application
and
Registration of
the business

Renovating the
place

Acquisition of
materials and
equipment

Installation of
ice cream
equipment and
other supplies

Hiring and
training of
Workers

Trial opening

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3. Nature of the industry

The enterprise will run its business in the town of Candelaria, Quezon. The people in

there loves to eat and for that reason, food industry is the most business. And Philippines, as

a tropical country, uses the production of ice cream as a way of easing the hot temperature. It

therefore result to large amount of competition relating to the providers of ice cream in the

country. Following this, the enterprise is open for competition and is ready to bring the

uniqueness and distinction of their product to the market. The entrepreneurs also noticed that

some industries in the town offers the same which makes a perfect competition. The

researchers are also aware that having multiple competitors would be the weakness of their

product. And for that, the entrepreneurs decided that they will first sell CocoBano to the

schools as a way of testing whether this would be popular in the public which secures the

possibility of it being worth investing and expanding.

4. Mode of Financing

The initial fund of the enterprise should be based on the fair acquired shares of the

entrepreneurs. The capital will be worth of two hundred and fifty thousand pesos (Php

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250,000), with these, each of the owners should contribute an equal fair of eighty five

thousand pesos (Php 85, 000) of shares for the operation of the enterprise.

5. Investment Costs

Below are the funds needed in starting up an ice cream business and the enterprise’s

operational cost for the first month of its establishment.

Table 2

BIR annual registration fee Php 500

Taxes and licenses Php 3500
Advertising expense Php 900
Rent expense Php 8000
Salaries expense (3 employees) Php 19500
Utilities expense Php 13 000

 Electricity bill Php 800

 Water bill Php 500
Total Equipment Php 130 000
Supplies and raw materials (first month) Php 15 000

A total of Php 190 400, meets the owner’s estimated capital of Php 250 000.

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Chapter 2

Marketing Study

A. PRODUCT DESCRIPTION

CocoBano Ice cream is a business that does not only offers quality products, it

also seeks to apprehend their consumer’s preferences. According to Orison Swett Marden

(1924) the golden rule for every business man is this: “Put yourself in your customer's

place”. Therefore this study seeks to put their consumer’s satisfaction as their top priority. It

also embraces Corporate social responsibility (CSR) to produce an overall positive impact on

society. The principle of every business should not focus on existing because of the benefit,

but to exist for everything is dependent amongst each other: the customer and seller, drink

and food and etc. This mean that if the business only exists to gain money but doesn’t benefit

another environment it is still poor because they are not giving any good to consumers, they

may have money satisfaction but not in social responsibility. Commonly, this kind of

business could easily dissolve in short span of time.

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Ice cream is a dietary source of two important minerals. Both calcium and phosphorus

promotes strong and healthy bones. Ice cream may cause problems for certain people because

it is dairy-based and contains lactose, a milk sugar. The researchers come up to produce a

product will serve people a good quality ice cream which contains healthy ingredients. They

name it “CocoBano” which is a derived word from the two fruit which is the Guyabano and

the Coconut. Most people know that ice cream is fattening, but this Cocobano ice cream was

made with health benefits. Guyabano (Annona muricata) is called a nutriceutical product as

the combination word of nutritional and pharmaceutical due to its nutritional composition

that can provide health benefits. This ice cream is actually rich in essential nutrients. The

flavor of this ice cream is soursop which contains antioxidants. It may help stabilize blood

sugar levels. And to add it with a twist, the researchers added a toppings which is the

coconut. Coconut has also health benefits. This provides people with a disease fighting anti-

oxidants and help reduce risk factors for heart diseases.

Guyabano is being widely cultivated in Central America, some sub-Saharan parts of

Africa, and in Southeast Asia, the Philippines included. Traditionally, guyabano has been

consumed by diabetics to lower their blood sugar, and tests showed that it even outperforms

Metformin, the most commonly used maintenance drug of diabetics, in lowering blood

glucose levels.

The target market of this product is the health-conscious persons and even the

potential health-conscious because this product wanted to promote a healthy economy not

just to whom whose already healthy but also to other people that were enlightened and wants

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to live healthy too. CocoBano wants to give them a healthy dessert that will surely benefit the

consumers in an eco-friendly or organic way.

The business will be launching their very first store in the town of Candelaria,

Quezon at Malabanban Norte where the actual place of study held. It offers services such as

the distribution of the products to stores, groceries, and schools. It will also implement

discounts for retailers inside the Candelaria. The business plans to expand and launch stores

at the area of the Southern Luzon such as Sariaya, Lucban, Lucena, Tiaong, and San Pablo.

This expansion will generate more profits for the company and helps build a healthy

economy in this country.

Below are the list of ingredients that are going to be used in creating a bountiful ice

cream:

a.) Best high protein and vitamin C ingredients.

 Milk
 Lime zest
 Egg yolks

b.) Best fruits

 Guyabano
 Coconut
 Strawberry
 Mango

c.) Healthy Additions and Flavor

 Vanilla Extract

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 Almond

The major purpose of this product is to promote a healthy lifestyle through providing

a beneficial or advantageous food in the market. It is to help people have a healthy diet that

can help one reach and maintain a healthy weight, reduce risks of chronic diseases (like heart

disease and cancer), and promote overall health. This product will help kids, teens and adults

to eat fruits and defend themselves from the possible threats of illnesses that is spreading in

the surrounding.

B. DEMAND ANALYSIS

Ice cream consumption usually peaks during the hot summer months. It is also

stimulated by festivities, be it town fiestas or birthday parties, making ice cream very much a

part of every celebration. As such, consumption of ice cream remains significant even during

the rainy season. According to Market Watch, The global Ice Cream market is valued at

57900 million US$ in 2018 and will reach 84900 million US$ by the end of 2025. In the

recent past, ice cream has earned the reputation of being a sugar-loaded, nutrition-void

calorie bomb. However, the traditional ice cream market has encountered challenging

conditions in more matured markets due to rising diet-consciousness and healthy lifestyles.

Such growing concerns have influenced the food industry marketers to astutely churn out a

variety of healthier, yet decadent frozen treats to please the modern consumers. As a result,

the rising preference for nutrient-rich ice cream has made a subsequent impact on the growth

of organic ice cream industry.Organic ice cream industry trends have clearly demonstrated

that the usage of healthy frozen desserts has been moving ahead at a rather remarkable pace.

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As per reliable sources, ice creams and frozen desserts remain among the top food categories

in the supermarkets.

As the CocoBano plans to reside and operate in front of the Manuel S. Enverga

University Foundation, the daily market would be mainly the students and the people who go

daily from the said school. People who are employed and have the capability to spend their

income could also add to the factor.

The researchers have successfully conducted their questionnaires to the 150

respondents from Manuel S. Enverga University Foundation Inc. The percentage of age from

the implemented questionnaires was shown below.

respondent's age
12 13 14 15 16 17 18

12.00%

0.67%

42.00%

28.00%

4.67% 1.33%

11.33%

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Chart 1.

The graph shows the variation of ages of the respondents. The highest percentage are

those who ages from 13 and 17 and the least are from ages 12 and 15.

Percentage of people who buys IcE cream

non buyers buyers

9.33%

90.67%

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Chart 2.

percentage of people who is interested to buy the product

buyers non buyers

34.67%

65.33%

The graph

shows the percentage of people who buy and don’t buy ice cream. The chart shows that

ninety one percent of the respondents buy ice cream and the remaining percent are those who

does not.

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Chart 3.

The graph shows the percentage of people who are interested at the researcher’s

product. Sixty five percent (65%) out of one hundred agreed and is interested to try the

proposed flavor of the ice cream while the remaining percent (35%) are those chose not to try

it.

Cone (₱10-₱20)
buyers non-buyers

10.00%

90.00%
Cost of Ice

cream respondents are willing to pay.

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Cup (₱15-₱25)
buyers non-buyers

18.67%

81.33%

Gallon ₱300-₱350
buyers non-buyers

45.33%
54.67%

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Chart 4.

The graph shows the percentage of people who are willing to buy the product in

accordance to the range of prices given. In cone, ninety percent (90%) of the respondents

agreed to the price which ranges from ₱10-₱20. The remaining ten percent (10%) however

disagrees.

In cup, eighty one percent (81%) agrees to buy the product with its price ranging from

₱15-₱25 while the remaining nineteen percent (19%) chose not to buy it.

Prefered container
Gal l on Cup Cone

14.67%

50.67%

34.67%

Lastly, the

gallon with its price ranging from ₱300-₱350 has a result of fifty five percent (55%) who

agrees to buy and forty five percent (45%) for those who does not intend to buy.

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Chart 5.

The graph answers the question, “What is your preferred container?” The respondents

are given three choices which are the cone, cup, and gallon. The highest percentage are those

who chose the cone, followed by the cup and the least among the three is the gallon.

typical cost of how much the respondents spend their money on snacks/merienda
₱20-₱40 ₱41-₱60 ₱61 AND ABOVE

12.00%

26.00%

62.00%

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Chart 6.

Respondents are given three options regarding on how much money they spend for

snacks/merienda. According to the chart, sixty two percent (62%) of the 150 respondents has

a budget of ₱20-₱40, while twenty six percent (26%) of them spend their ₱41-₱60 for

snacks. The fewest is the ₱61 and above choice which corresponds to twelve percent (12%)

only of the chart.

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Additional Flavor Preference

strawberry banana ma ngo others

6.67%

34.00%

44.00%

15.33%

Chart 7.

The respondents are given choices on what additional flavor would they prefer, forty

four percent (44%) of the respondents chose the flavor mango, thirty four percent (34%) for

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strawberry, fifteen percent (15%) for banana, and the remaining percentage which is seven

percent (7%) for those who gave their specified and preferred flavor.

D. DEMAND-SUPPLY ANALYSIS

Demand and Supply analysis is the study on how buyers and sellers interact to

determine transaction prices and quantities. The implemented demand and supply analysis

help the researchers found out about the possible competitors of the business and the

consumer’s possible numbers. Both of these factors are considered into analyzing the

movement of supply and demand in the market. Based on the demand analysis, it is shown

that the demand for ice cream is dramatically increasing. It asserts that the ice cream product

is still popular and will continue be. It is knew that an increase in demand will result to a

raise of price. On the supply side, an increase in supply will force the price downward while

the reduction in supply will raise the price upward. It is further concluded that the supplies

will meet the sufficient needs in creating the ice cream. Through also the defined

competitors of the CocoBano Enterprise, they can now come up with an effective idea to

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attain competitive edge to its competitors. The significance of the two analyses is being

shown with the guidance it proffered to the business.

Furthermore, it can also help in determining the number of the products which the

business will produce. This guides them to accurately project the demanded supply for the

CocoBano Ice cream. The industry could produce products like the CocoBano Ice cream for

its capability to produce agricultural crops and local goods.

C. SUPPLY ANALYSIS

All businesses have competitors. Knowing what kind of competitors one have, and

what they are offering, can help the enterprise make products, services and marketing stand

out. It will enable one set prices competitively and will help respond to rival marketing

campaigns with their own initiatives. The entrepreneurs can use this knowledge to create

marketing strategies that take advantage to the competitors' weaknesses, and improve the

business performance. It can also assess any threats posed by both new entrants to the market

and current competitors. This knowledge will help one be realistic about how successful one

can be.

CocoBano has identified its competitors. There are few competitors existing. The

researchers found two direct competitors which also offers the same product. It is the 7/11

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that’s been operating for a long time now, and Starshop which are both located at

Malabanban Norte, Candelaria Quezon. These convenience stores offer partly the same

product which is an Ice Cream. There also is a restaurant existing near the business location

namely Ben’s Halo-Halo which has been popular to a lot of people especially students. This

restaurant offers snacks and beverages. Ben’s Halo Halo was located at Villa del Carmen

Subdivision Malabanban Norte Candelaria Quezon. There also are existing indirect and

replacement competitors beside the store location which is the Yumcha and Vertz Hub Food

that is also located in front of Manuel S. Enverga University Foundation Inc. Indirect

competitors are those whose products or services are not the same but that could satisfy the

same consumer need. These stores also shown strong potential in competing with the propose

business and is situated at an exactly identical size of the location. In addition, the

researchers consider Olvenia’s Ice cream as their primary competitor for they sell or market

the same products as the CocoBano business. The said business are selling products or

services that are essentially the same as the CocoBano business.

Table 1. Existing Competitors

Name of the Business Location of the business

YumCha Malabanban Norte, Candelaria Quezon

7/11 Malabanban Norte, Candelaria, Quezon

Starshop Pan-Philippine Hwy, Candelaria, Quezon

Villa del Carmen Subdivision Malabanban
Ben’s Halo Halo
Norte Candelaria, Quezon.
Olvenia’s Ice cream Malabanban Norte, Candelaria Quezon

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Vertz Hub Food Malabanban Norte, Candelaria Quezon

D. PRICE STUDY

Price Study Cocobano Ice Cream considers mainly the costumer’s daily budget in

establishing the ice cream’s selling price. The business ensures that the costumers will get

many nutrients and health benefits at an affordable price. The price study is best conducted

first by determining the selling price of all business with similar product. The other business

started selling ice cream with their starting price stated below:

MAGNOLIA ICE CREAM

Gallon
Size Cup Cone
(1.5L)

Average Price ₱230-₱260 ₱22-₱25 ₱10.00-₱20.00

SELECTA ICE CREAM

Gallon
Size Cup Cone
(1.5L)
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Average Price ₱350 CocoBano
₱89 Ice₱10.00-₱20.00
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Table 1: Prices of Magnolia Ice Cream and Selecta Ice Cream

The inconsistent prices of the fruits brought about by economic policies, self-inflicted

food crisis, inflation, price control and production cost may change the level of the business’

pricing state. The researchers have seen the shifting consumption of people form unbothered

edible to healthy and nutritious foods. This may be due to the alarming country’s obesity

epidemic and many more. There will always be a slight increase or decrease in demand

whenever the prices of the products are lowered or raised. As the price of the product

increases, which may brought by the fluctuations of the price of raw materials used in the

production of the ice cream and the packaging or container which may increase or decrease

the production capacity of the business. In determining the selling price of the product, the

materials and expenses should be considered. Keeping the proportion of all these gives the

business a competitive advantage, either by increasing the profit margin or allowing the

business to price its products more competitively. Otherwise, the business will not attain its

desired profit or return.

Product Table 2: Selling Price

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Selling Price of CocoBano
Product Sizes
Cone Cup 1.5L Gallon
CocoBano Ice cream
₱10-20 ₱15-₱25 ₱350
Coconut and Mango
₱10-20 ₱15-₱25 ₱350
Flavor
Strawberry and
₱15-25 ₱20-₱30 ₱360
Coconut flavor

E. FACTORS AFFECTING THE MARKET

The factors that affecting the real market are the offer and demand, when we talk

about offer, we refer to the amount of products and services produced by an economy in a

given time and the demand is the number of people who are willing to buy a product at a

certain price.

The target market are customers of all ages, most preferably those aged 12-65years

old since in this age bracket they are all now capable of having their own decisions and have

the purchasing power to buy the things they desire. The average allowance of students are

approximately ₱100-₱200 per day while adults have the capability of using their money as

long as they want and they are those people who have extra money to spare on the things that

they want to buy, thus implying that they have the potential to buy the said product

“CocoBano Ice Cream”.

There are approximately 2000 students, employees, teachers, and school-goers at the

location where the said product will be established. Average students spend mostly their

allowances for food especially for snacks and merienda. This business will attract the

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attention of the students in choosing food with other stores. The CocoBano will use Social

Medias or online sites in promoting their product for it gives more marketing options,

benefits and platform for business than traditional methods. Social media networks build

relationships with important people and for character development. The target market of

“CocoBano Ice cream” is everyone in the vicinity of Candelaria, Quezon ranging from child-

adult-senior citizen because of the imposed health benefits within the product which aim to

help the people to live healthily. The expansion of the store shall be implemented once there

are more stable sales in the target market. The business will be marketed at the town of

Candelaria, Quezon and is aimed to expand within the vicinity of CALABARZON.

Establishing an ice cream shop in front of Manuel S. Enverga University Foundation

Candelaria Inc. will guarantee a positive outlook on the business’ demand and some will be a

hindrance the growing of the demand for the CocoBano including the customer’s purchasing

decision. The researchers are open to these possible threats therefore they made substitute

products available for the consumers allowing them to choose from variety of choices and

not just the ice cream itself.

The capacity of the business will also increase and decrease due to the economic

conditions that may affect the production and prices of the raw materials. There would be

chances of fluctuations regarding the materials to be used. Fluctuations in prices are a

common phenomenon in the economic world due to factors like the weather condition,

inelastic demand, inelastic supply and global market. This would affect the serving capacity

of the business therefore Cocobano will offer vary of prices as it is dependent on the

decreases and increases of the nations’ goods. For this reason, the Cocobano’s plan is to

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reduce the serving sizes prior to the keep the prices steady. The effect of seasonal ingredients

may also be added to the factors. There would only be certain time where these fruits would

be harvested, therefore this business will offer products as a substitute to the seasonal fruits.

F. MARKETING PROGRAM

G.1 DESCRIPTION OF PRODUCT

Cocobano would be offering high quality ice cream using supplies sourced from

agricultural suppliers using equipment characterized with the latest technology utilizing the

procedures with the absence of difficulty.

Considerations of high quality which is available within supplies:

1) Fresh Guyabano and Coconut fruit.

2) Modified food and organic.

G.2 SERVICE

The business will offer quality service. A business with high service quality will meet

or exceed customer expectations whilst remaining economically competitive. Evidence

from empirical studies suggests that improved service quality increases profitability and

long term economic competitiveness.

The following are the elements of the services that the CocoBano will provide to its

customers:

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 Hospitable Staff
The business will guarantee to hire staff with pleasing personality and is eager to aim

the success of the enterprise.

 Sanitation of the product
The impact of the sanitation crisis is felt throughout entire nations and regions,

crippling opportunities for growth and development. According to an Oxford

Economics report on behalf of LIXIL, global economic losses from poor sanitation

were estimated at US$223 billion in 2015, an increase of more than 20 percent from

five years earlier. Therefore, the CocoBano business would make sure to offer clean

and safe products for its customers.

 Equipment
Advance and fully functioning equipment would be used in producing the product.

G4. PRICE

Market Penetration – Since the business would have well-entrenched competitors

on its location, penetrating the market with lower prices would be the business’s strategy.

Additional markup for products that are in demand – since the business would have

additional products in the business, they intend to add an additional mark up for those

products that are in demand. Markup within the products would be implemented for

additional profit.

G5. PROMOTION STRATEGIES

To increase the market sales, different strategies will be used and considered for the

business.

Strategies Encouraging Impulse Buying:

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MANUEL S. ENVERGA UNIVERSITY FOUNDATION CANDELARIA, INC.

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1) Encouragement to Shop – Increase Brand Reputation

CocoBano would have Online Advertising & Print Media promoting the love for

CocoBano. Promotion towards the brand would potentially increase brand awareness and

would eventually turn into recognition.

2) Loss Aversion Switch – Giving Limited Time Offers

Giving limited time offers would provide customer the need to purchase. Normally

this would affect the purchase decisions of customers by causing them to prevaricate over a

purchase especially if it has high quality.

3) Discounting

Seasonal discounts especially in predicted times of low sales.

Eco friendly society is what the business strives in this study. The CocoBano Ice cream

will offer a five percent discount for those who once buy the product with its corresponding

container. CocoBano encourages people the “Reduce, Reuse, And Recycle” campaign thus

attaining an eco-conscious environment conserving the use of plastics and other materials

that contributes to waste. This movement could also benefit the business by the reduction of

purchasing new containers limiting the businesses’ expenses. This practice would be use

continuously thus helping people save money.

Advertising:

1) Print Media – Traditional Print Media providing flyers and posters.

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MANUEL S. ENVERGA UNIVERSITY FOUNDATION CANDELARIA, INC.

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2) Online Advertising – Utilizing Social Networking Sites especially Facebook to provide

online advertisements (within the first year of operation)

3) School “Celebrity” Advertising – To minimize advertising expenses, CocoBano would use

famous students within schools to bring the product hype onto the group market (especially

the target market)

4) Government

CocoBano would take permission and assistance from the government of Quezon to

place friendly reminders within the community (especially schools and businesses

within). This would not only increase product awareness but also shows Corporate

Social Responsibility.

Others:

1) Sponsoring School Snacks

Sponsoring school snacks/ merienda would be a unique way to provide a certain brand

image over markets.

SWOT MATRIX

Opportunities
Strengths Weaknesses
 Increase of population
 Use
The of product
social is made with
media  Seasonal sales of the
fresh ingredients
 Lower prices of raw product
 materials
Advance technologies were 
ThreatsHigh cost of equipment
used resulting
 Uniqueness to large scale
of flavor  Limited workforce
High cost of electricity
Itofwill remain as a businessWEAKNESSES Newly
production
OPPORTUNITIES Climate change business
established
 opportunity
Availability not
of raw materials having THREATS
less market.
only for this Senior High School
Competition Department
from
 year
Skilled workforce  Tough competition
international brands and
but to the coming CocoBano IceUndetermined
cream: A feasibility
Philippine
Study
years as well. new businesses.
 climate
Loss of capital/ bankruptcy
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MANUEL S. ENVERGA UNIVERSITY FOUNDATION CANDELARIA, INC.

Quezon, Philippines

Senior High School Department

CocoBano Ice cream: A feasibility Study