Table of contents pages

Chapter 1 – Introduction 1

A. Introduction
B. Background of the study
C. Statement of the problem
D. Framework of the study
E. Conceptual framework
F. Significance of the study
G. Definition of terms

Chapter 2 – Research Methodology 3

A. Research design
B. Study area
C. Respondents of the study
D. Instruments of the study
E. Data gathering procedure
F. Validity of the instruments
G. Statistical treatment of data

Chapter 3 – Technical study 8

1. How to make your product?

2. Business location
3. Labor requirements

Chapter 4 – Marketing Study

1. General Business Condition

2. Competitive Condition
3. Pricing Strategy and promotion
4. Demand and Market research

Chapter 5 – Financial Study 9

Chapter 6 – Management Study and Organization 12

Chapter 7 Socio Economic Study 13

Chapter 8 – Summary of Finding, Conclusion and Recommendation 13

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Chapter 1
A. Introduction

Banana (Musa sp.) is a plant native in tropical areas such as Southeast Asia. It varies in sizes and
colors. Its fruit is considered as staple fruit in that area of Asia. Philippines, being a tropical country,
can be expected to have plenty of Bananas. It is widely grown fruit in the country and is a good
source of income to 5.9 million farm households (Rivera, 2004). In fact, Philippines belong to top
banana producing nations. Banana ranks next to coconut oil and prawns in terms of value earning
during the last five years. According to FAOSTAT, the volume of production (in metric tons) of
banana in the Philippines last 2009 is 9,013,200 and the yield (hg/ha) is 198,079.
There are 80 distinct cultivars of banana in the Philippines. Some of which are Señorita, Lacatan,
Latundan, Bungulan and Saba. The latter is the main source of commercial products made up of
banana, like catsup and banana chips. Meanwhile, the other cultivars mentioned are grown for
local market.
There are various uses of banana. It can be consumed as a fresh fruit or as processed like catsup,
chips, wine, vinegar, and many more. About 66% of the production is consumed locally and the
34% are exported (Rivera, 2004).

Vinegar is an acidic liquid, a condiment that is produced from fermentation. It has been used since
ancient times and up until now. It can be from the juice of a fruit, or even from the peels of the fruit.
Vinegar has also been an income source. In the Philippines, vinegar industry has made it
internationally.

Vinegar is part of daily households. Aside from cooking purposes, it can be also used in house
cleaning, and for medicinal and agricultural applications. Vinegars manufactured and sold in the
market are made up from sugarcane and there are also which are made up from coconut, the
Sukang Kaong.

B. Background of the study

Banana is the common name for a type of fruit and also the herbaceous plants of the genus  Musa.
Banana is amongst the most versatile and most widely eaten fruits in the world today. Bananas
come in a variety of sizes and colours when ripe, including yellow, purple, and red. Bananas can
be eaten raw though some varieties are generally cooked first. Depending upon cultivar and
ripeness, the flesh can vary in taste from starchy to sweet, and texture from firm to mushy. Unripe
or green bananas and plantains are used for cooking various dishes such as banana pudding and
are the staple starch of many tropical populations. Banana sap is extremely sticky and can be used
as a practical adhesive. Sap can be obtained from the pseudostem, from the fruit peelings, or from
the fruit flesh.
Vinegar is a versatile product that has been used in all corners of the world for over thousands of
years. Having long been viewed as a necessity for every home with its various applications,

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 vinegar is increasingly popular with consumers as new blends, uses and
specialty products continue to enter the marketplace.

C. Statement of the Problem

1. How viable is the marketing aspect of the study?

1.1 competitive condition
1.2 target market
1.3 pricing strategy
2. How viable is the financial aspect of the study?
2.1 capitalization
2.2 income statement
2.3 balance sheet
2.4 cash flow
2.5 return of investment
3. How viable is the technical aspect of the study?
3.1procedure
4. What is the management viability of the study taking into consideration of the ff:
4.1 forms or ownership
4.2 agreement partner
4.3 job analysis
5. What is the socio economic significance of the study?
5.1 employment
5.2 taxes

D. Framework of the Study

In present time most of people are so conscious of their health. They look for genuine, natural and
healthy products. The researchers found out that banana fruit has a good quality of a substitute of
vinegar. The purpose of the researcher of this study is to fill the endless changing needs and wants
of the consumers. Banana vinegar 100% natural and healthy product and is good substitute to the
commercial vinegar sold in the market.

E. Scope and limitation of the study

This study is limited only on the utilization of banana as vinegar. The physiochemical analysis of
the extract is not included due to financial constraints. And also the study is within Cagayan de Oro
City. This was conducted from_____ until the deadline.

F. Significance of the study

Researchers:
This study is helpful to the researcher for this will be a guide for future plans. By examining factors
involved in putting up a business and managing one. They could improve their own business and
understand more of the needs of their consumers.

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 Community:
The members of the community would benefit from the study because of the taxes that the product
could generate. The taxes would help for improvement of public facilities etc.

Market:
This study is helpful to the market because of the availability of alternative and healthy vinegar to
the consumer.

Government:
The government will benefit from the study because the product generates income and would pay
taxes to the government.

G. Definition of Terms

Fermentation
-a chemical reaction in which a fermentcauses an organic molecule to split into simpler substances
, espthe anaerobic conversion of sugar to ethyl alcohol by yeast Related
Pasteurization -
the process of heating beverages, such as milk, beer, wine, orcider, or solid foods, such as cheese
or crab meat, to destroyharmful or undesirable microorganisms or to limit the rate offermentation
by the application of controlled heat.
Siphon -
a tube or conduit bent into legs of unequal length, for use indrawing a liquid from one container into
another on a lowerlevel by placing the shorter leg into the container above and the longer leg into
 The one below, the liquid being forced upthe shorter leg and into the longer one by the pressure of 
the atmosphere.

Chapter 2 – Research Methodology

a. Research Design
The research study uses descriptive research method. The researcher collected information from
the consumer in a form of a survey. Survey is conducted to gather information about consumer
behavior and market potential data.

b. Study Area
The researcher chooses five (5) locations for them to conduct their studies. These areas where
found in two of market place here in Cagayan de Oro City and a much known establishment to
where consumer pick/ purchase their groceries. The first establishment BALUT VENDORS in front
of Gaisano mall, where the researcher posted near the area to gather information from the
consumers. BALUT VENDORS is a known leisure and a wide variety of merchandise. You’ll find
different class of people EATING PASSING at this area that’s why the researcher chooses this
spot. The next spot is another BALUT VENDORS located at Cogon Market. The main service they
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 offer is wet and dry market. We posted outside the store for us not to disturb the business inside.
The third spot is the SMALL SARI-SARI STORE located at JR Borja St. another establishment
around Cogon Market. We also posted outside where we can talk to consumer who is waiting for
their ride. The fourth spot is the La Victoria Groceries. This establishment is mainly serving as dry
goods store. If you go inside anytime you’ll find it crowded because it is known to be selling their
goods less 2 to how many cents cheaper than other store around Cogon. The fifth spot is the is
the housewife in the community (Camaman-an and Carmen).
c. Respondents of the Study
The respondents of the study are mostly shoppers or buyers from the chosen five establishments.
Some of them are just passersby but they do purchase and use vinegar. They are not force to
answer the survey. If the chosen subject refuses to answer the survey then the researcher looks
for another subject.

d. Instrument of the Study

The study uses product survey questionnaire as an instrument to collect information from the
consumers.
The questionnaire was created by the researchers for the sole purpose of this study. The first
question (1) is designed to identify the competition. The next question (2) is designed to find out
the amount of product the consumer purchase. The next question (3) is designed to find out how
satisfied is the consumer regarding the price of the product they purchase. The next question (4) is
designed to find out how did the consumer learn about the brand they purchase. The next
questions (5-11) are designed to find out the satisfaction level of consumer given the different
indicators toward the brand of product they purchase.

e. Data Gathering Procedure

The survey was conducted through a period four days from 4:00 pm -7:00 pm. The researchers
posted at the selected spots to conduct the survey. It took approximately 5 minutes in completing a
survey form. Then after the subject completed the survey the researcher jumped immediately to
the next subject to start another survey and in order to ensure unbiased sample selection. Each
researcher completed twenty surveys in the span of four days of posting at the selected area.

f. Validity of Instruments

Descriptive statistics analysis was use to find out the consumer behavior and market potential, due
to nominal nature of the questions on the questionnaire.

g. Statistical Treatment of Data

Competition analysis
There are two major competition, Silver swan and Datu Puti. This two major brands competes the
national market. They’re product is produce from cane vinegar.
Here in Cagayan de Oro City people uses another kind of vinegar the synthetic vinegar made from
chemicals mix in water.
Consumers prefer buying product in small quantities. The reason we saw why is thou is the price.
The smaller the quantity the lesser is the price. They find it more affordable this way.

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We asked the consumer how they learned of the brand they are using and we found that
advertisement affects most of their buying decision and second to this is recommended to them
showing that there are still people who believe in recommendation from others.
Regarding to the satisfaction to the brand of product they use they are still not satisfied of what the
brand provide them. These show that consumers needs and wants changes over time.

Result

What brand of vinegar do you purchase/use?

Frequency Percent Valid Percent Cummulative Percent

Silver Swan 52 52.% 52.% 90
Datu Puti 38 38.% 38.% 100
others 10 10.% 10.%
Total 100 100% 100%

Table no. 1 show that the competition that got the most frequency is the brand Silver swan
secondly is Datu Puti and ten percent uses other brand and or synthetic vinegar.

Volume of product consumer purchase.

Frequency Percent Valid Percent Cumulative Percent

Sachet 100ml 32 32% 32% 55
Sachet 200ml 23 23% 23% 83
Bottled 350ml 28 28% 28% 97
Bottled 385ml 14 14% 14% 100
Bottled 1000ml 3 3% 3%
Total 100 100% 100%

Table no. 2 shows that consumers prefer buying in smaller amounts of the product.

Consumer amends to the price of the brand of product they purchase.

Frequency Percent Valid Percent Cumulative percent

Yes 78 78% 78% 100
No 22 22% 22%
Total 100 100% 100%

Table no. 3 indicates that most of the respondents are satisfied with the price of the brand they
purchase.

How did the consumer learn of the brand of product they purchase?

Frequency Percent Valid Percent Cumulative Percent

Advertisement 53 53% 53% 67

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 Been using before 14 14% 14% 100
Recommended 33 33% 33%
Total 100 100% 100%

Table no. 4 indicates that consumers rely on advertisement in choosing the brand of product they
purchase

Acidity

Frequency Percent Valid Percent Cumulative Percent

Excellent 24 24% 24% 71
Good 47 47% 47% 93
Fair 22 22% 22% 100
Poor 7 7% 7%
Total 100 100% 100%

Table no. 5

Texture

Frequency Percent Valid Percent Cumulative Percent

Excellent 26 26% 26% 68
Good 42 42% 42% 94
Fair 26 26% 26% 100
Poor 6 6% 6%
Total 100 100% 100%

Table no. 6

Packaging

Frequency Percent Valid Percent Cumulative Percent

Excellent 24 24% 24% 70
Good 46 46% 46% 94
Fair 24 24% 24% 100
Poor 6 6% 6%
Total 100 100% 100%

Table no. 7

How important is the product to you and your family?

Frequency Percent Valid Percent Cumulative Percent

Excellent 24 24% 24% 60
Good 36 36% 36% 94
Fair 34 34% 34% 100

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 Poor 6 6% 6%
Total 100 100% 100%

Table no. 8

How likely are you to recommend the brand to others?

Frequency Percent Valid Percent Cumulative Percent

Excellent 26 26% 26% 68
Good 42 42% 42% 94
Fair 26 26% 26% 100
Poor 6 6% 6%
Total 100 100% 100%

Table no. 9

Rate the brand of the product compared to other brand?

Frequency Percent Valid Percent Cumulative Percent

Excellent 26 26% 26% 67
Good 41 41% 41% 93
Fair 26 26% 26% 100
Poor 7 7% 7%
Total 100 100% 100%

Table no. 10

Satisfaction level towards the product.

Frequency Percent Valid Percent Cumulative Percent

Excellent 26 26% 26% 67
Good 41 41% 41% 94
Fair 27 27% 27% 100
Poor 6 6% 6%
Total 100 100% 100%

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Chapter 3 – Technical Study
a. How to make the product?
First gather the ingredients.
- Bananas
- Water

Procedure:
- Wash ripe bananas.
- Peel and cut into pieces.
- Add water and boil for five minutes
- Cool and strain..
- Pour into suitable containers.
- Plug mouthy and container with piece of paper to protect it from dust.
- Ferment to two to three weeks.
- Siphon out clear, fermented liquor into sterilized container.
- Plug mouth of container with cotton and cover it with clean paper.
- Ferment for one to two months.
- Pasteurize at 70 degrees for 20 minutes.

b. Business Location

Banana vinegar was first introduced in Cagayan de Oro city by starting at small convenient stores.
Convenient store is a good start since the product is not known to the public. People usually go to
convenient stores when they forgot something from the grocery or need something immediately.
Very accessible to people and has personal touch from the sales lady or owners of the stores. The
owners or saleslady could just refer banana vinegar in place of their usual vinegar.

c. Labor Requirements
Banana vinegar production is just a simple business; the organization structure will have a simple
flow.
For volume production of banana vinegar additional hand is very helpful. We will hire a laborer
who’s responsible of heavy duties in production like carrying containers and finished products for
delivery. Preferably laborer from near the production site to insure promptness and can do
overtime work when needed. Another important reason is that people from nearest place can easily
transport with their convenience since the business is small, the working force will be required from
town itself or its vicinity. The owners on the other hand will give assurance to the workers like a
good working condition, facilities for a conductive maintenance of their health incentives and many
other benefits required by the labor code, plus benefits given by the company itself.

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Chapter 4 – Marketing Study
a. General Business Condition
There is currently no other banana vinegar on the market. Key differentiating quality is the
uniqueness of the product. Hence our vinegar competes with no other equal product, but a variety
of substitutes.
The big challenge is convincing people to buy your product. And most consumer sticks to the brand
their using unless somebody will introduce new brand or simply word of a mouth.

b. Competitive Condition
Consumer health awareness is the edge of this product. Banana vinegar is made from the fruit of
banana. The product will be market as healthy product by informing the consumers of the benefits
they can get from this product. Aside from these there are a lot of uses of vinegar. Aside from food
preparation it can be use in cleaning, medicinal, and agriculturally.

c. Target Market
The target consumers of the product would be female and male individuals. The range
of age will be from 25 to 59 years old. It is intended for individuals that are capable of
earning enough, capable of living by themselves, and or those have families.
Individuals, regardless of their family status or class (i.e. low class, middle class, and high
class) are the target market since the product is used and bought by individuals in daily

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 life, especially in cooking. They should belong in the group of working people, can be
young professionals, housewives or husbands and adults.

d. Pricing Strategy and Promotion

The price of the commercial vinegar varies depending on the amount or size of the
container (in ml) and what kind. If the price of bananas vinegar would be higher than in
the existing vinegars in the market, there is a probability that it would not be bought by
the target consumers. The price of banana as fruit and sugar is also considered. If its
price increases, the banana peel vinegar’s price will also increase since the banana is
one of the inputs of the product. It should be noted when prices of other vinegar
decreases the demand for the banana vinegar decreases also. Meanwhile, if prices of
substitutes increase, then the demand for banana vinegar will also increase.
For the purpose of this feasibility study, the business will assume a 33 percent margin on
goods sold.
As have mentioned before the product is new in the market only few have known of its
existence. The promotion should start in every community and barangay. Banana
vinegar will be distributed and sold in a convenient store where people buy because
they forgot or can’t be in a grocery or needed the product immediately. Very accessible
to people and has personal touch from the sales lady or owners of the stores. The
owners or saleslady could just refer banana vinegar in place of their usual vinegar. This
will last until the 9th month, by this time a lot of consumer is already aware of the
product. On the tenth month banana vinegar will be sold in the market. And on the
second year banana vinegar can expand its market to nearby provinces.
Banana vinegar will be advertised using the web. Using social networking sites like face
book.

e. Demand and Market Research Resume

The income of the consumers contributes to the demand of the product an increase in
the income will also increase the demand for the product. Thus, if the income of the
target consumers increases, the demand for the product will also increase.
Since this product is not directly consumed and bought by all individuals in the market,
age is also a factor that affects the demand. Those individual that belong below the
target consumer age bracket, the demand of the product is relative low, and same thing
might go for those individuals that belong above the target market age bracket.
Since the banana vinegar is new in the market, the total demand for this is obtained
using the per capita consumption of the similar product, which is then multiplied to the
population of the target area in the last ten years.

Year Population ages 25 – 59, Per Capita Consumption Total demand in

male and female (ml)
2000 180, 304.00 2, 461.56 443, 829, 114.2
2001 184, 883.72 2, 461.56 455, 102, 369.8
2002 189, 579.77 2, 461.56 466, 661, 978.6

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 2003 194, 395.10 2, 461.56 478, 515, 202.4
2004 199, 332.74 2, 461.56 490, 669, 499.5
2005 204, 395.79 2, 461.56 503, 132, 500.8
2006 209, 587.44 2, 461.56 515, 912, 058.8
2007 214, 910.96 2, 461.56 529, 016, 222.7
2008 220, 369.67 2, 461.56 542, 453, 164.9
2009 225, 967.06 2, 461.56 556, 231, 476.2
2010 231, 706.62 2, 461.56 570, 359, 747.5

Table no. 11

Referring to the National Statistics Office, the population on different age bracket is
already given for the year 2000 to 2007. And the population growth rate within 2000 to
2007 is 2.54. Assuming that the growth rate does not change, using this information the
demand for the last ten years and next ten years was determined.

Year Population ages 25 – 59, Per Capita Consumption Total demand in

male and female (ml)
2011 237, 591.97 2, 461.56 584, 846, 889.7
2012 243, 626.81 2, 461.56 599, 702, 010.4
2013 249, 814.93 2, 461.56 614, 934, 439.1
2014 256, 160.23 2, 461.56 630, 553, 775.8
2015 262, 666.70 2, 461.56 646, 569, 842.1
2016 269, 338.43 2, 461.56 662, 992, 705.8
2017 276, 179.62 2, 461.56 679, 832, 705.4
2018 283, 194.58 2, 461.56 697, 100, 450.3
2019 290, 387.72 2, 461.56 714, 806, 796
2020 297, 763.57 2, 461.56 732, 962, 893.4

Table no. 12

Demand Analysis
I was not able to get the actual per capita consumption of the vinegar, and since it is
commonly used by the individuals, I just interviewed some how much vinegar, in
milliliters, do they consume in one day. After obtaining their answers, I got the average
of it and multiplied it by 365, since there are 365 days in one year.
To know the population of my target area, Cagayan de Oro City, I researched it on
National Statistics website. There, the population according to gender and age bracket is
already given. But the population given is until 2007 only. Using the statement there
that the average growth rate of population from 2000 to 2007 is 2.54. I assumed that it
did not change and will not change until the next ten years.

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Chapter 5 – Financial Study
To start the business, starting capital is needed to cover insurance and operating expenses including
appropriate licensing and permits. These needs will be funded through the start-up capital that the
business secures prior to opening. The amount needed is estimated to be P2500.00.

The startup capital of P2500.00

Variable Cost

( 1Kg. of banana, 15 x 150ml)

Banana - P100
Wood - P20
Bottle w/ cap P100
Label P100

Total P320

Equipments:

Scale – P125
Funnel - 20
Boiling pot- 200
Ladle 25
Knife 15__
405

Grand Total: P725

The price of the banana Vinegar is P10/bottle (150ml)

Chapter 6 – Management Study and Organization

Pre – operating period

During the pre – operating period the owners are responsible of dealing with some government
agencies to secure the necessary documents needed for the project.

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Operating period

During the operating period, the owners handled most of the position, task and responsibilities
since the business is small and in the starting phase.

The accountant director is responsible for the books and the preparation of the company book
of accounts. He also examines the financial status of the company.

The sales director will be responsible for the selling and finding markets for the product.

The production director is responsible for the production in order to insure the quality of the
product and minimize production or manufacturing costs.

Chapter 7 – Socio Economic Study

The business is at the starting phase and producing in small quantity. The employee needed is
also limit to two. But as the production grow labor needed also increase. And it can help more
in the economic status of Cagayan de Oro city by providing more jobs.

Cagayan de Oro City is a known as one of the fast rising highly urbanized city in the Philippines.
Infrastructure and business is at boom. One factor for this is responsible remittance of the
required tax to a business. It is the duty of every business in the community. That’s why this is
very much responsible of paying the required taxes. And also we want to be a model in proper
waste disposal.

Chapter 8 – Summary of findings/ Conclusion and Recommendation

The researcher think of a product is unique and innovative. The researcher found out that
banana fruit vinegar is good substitute vinegar to the commercial vinegar. The researchers uses
the fruit of banana and get the juice of the fruit and stored it for a few months. The researcher
used vinegar starter and yeast to make a perfect vinegar substitute.

The researcher therefore conclude that this product is a good substitute vinegar for the
commercial vinegar. This product have a good quality of odor, taste and color.

The researcher recommend this product as a good substitute of a commercial vinegar.

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References

Rivera, R. A. (2004). Philippine Banana Production & Marketing.(n.p.).

http://www.census.gov.ph

WWW.practicalaction.org

WWW.FAO.ORG

Banana.(n.d.) Retrieved June 23, 2010 from http://www.da.gov.ph/tips/banana.html

Vinegar.(n.d.) Retrieved June 23, 2010 from elgu2.ncc.gov.ph

Bureau of Agricultural Statistic

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Appendix

Product survey form

1. What brand of vinegar do you purchase/use?

Silver swan - ______
Datu puti - ______
Others - ______
2. Volume of product you purchase?
Sachet – 100 ml ______
200 ml ______
Bottled – 350 ml ______
380 ml ______
1000 ml ______
3. Is the price of your vinegar affordable for you?
Yes - ______ No - ______
4. How did you learn about this rand of vinegar?
Advertisement - ________
Using ever since - ________
Recommended - _________

Indicators Very Good Not that Not

good good good
Rate your brand of vinegar according to its acidity.
Rate you brand of vinegar according to texture?
Rate you brand of vinegar according to
packaging?
How important is the product to you and your
family?
How likely are you to recommend this to others?
Rate your brand of vinegar compare to other
brand.
Your satisfaction level towards your brand of
vinegar

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