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Chapter 1

EXECUTIVE SUMMARY

HIGHLIGHTS:

MARKETING PLAN

The business will operate in front of Don Marino Marcos Memorial State

University, Mid La Union Campus (DMMMSU-MLUC). The target market of the

proponents will be the students, faculty and staff of DMMMSU-MLUC and people

residing in the City.

Pedigrab will provide an E-trike as a service vehicle with various designs that will

satisfy customers at affordable price. The proponents conceptualize their own

management practices to penetrate the whole market.

ORGANIZATION AND MANAGEMENT PLAN

The form of ownership of the business will be partnership and will be composed

of eight Business Administration students major in Financial Management. The proposed

business is composed of driver, on call mechanic, manager, accountant, bookkeeper,

auditor, sales agent, production assembler that will help on the operations of the business.

OPERATIONS PLAN

Pedigrab is a three-wheeled, vehicle powered by an electric motor. It is made up

of a bicycle attached to a sidecar that can seat up 3-4 persons. It is powered through

electric, no cost for diesel or gasoline, minimal maintenance, and low cost of investment.
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PRODUCTION PLAN

The proponents will use the designed workflow and operating instructions to

maintain the condition of the service vehicle. Wastes will be properly segregated and

disposed. Cleanliness of the surroundings should be observed and maintained.

FINANCIAL PLAN

The proposed business will have an initial capital of P5, 866,740 (Five million

eight hundred sixty-six thousand seven hundred forty pesos), equally contributed by the

eight members, and expected to grow in three years.

SOCIO –ECONOMIC ENVIRONMENT

Pedigrab will give opportunity for employees to have a source of living and at the

same time build a strong relationship with its co-employees. The government will benefit

from the Pedigrab through the taxes and licenses paid by the business yearly. The taxes

will be used by the government in the infrastructure projects that will used to the socio

economic benefits of the people and the country as a whole.

CONCLUSION TO FEASIBILITY

The proposed project is feasible because it is expected to have a return on

investment of 60% at the end of three years operations.

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CHAPTER 2

PROJECT BACKGROUND

History

PediGrab services is built by a group of creative and idealistic students who are

Lovely Joyce R. Abungan, Rhea Acibar, Shaina C. Andres, Izza Nicole M. Dulay,

Jennifer Ann D. Papa, Lea E. Peralta, Karl Jay Q. Pimentel, and Hazel D. Pulido with a

tagline “Where There’s a Road, There’s a PediGrab.”

The proponents started it when they shared different experiences in commuting.

The proponents also observed that coming to school is more convenient if there is a

service vehicle rather than walking most especially to those students of College of

Management (COM) because the building is in the corner farther from the gate of the

school and national highway. Moreover, most of the vehicle causes pollution so they

decided to create a Pedigrab Service Vehicle because it’s less expensive and eco-friendly.

Project Proponents

The project proponents of this feasibility study are Pimentel, Karl Jay Q.,

Abungan, Lovely Joy R., Acibar, Rhea, Andres, Shaina C., Dulay, Izza Nicole M., Papa,

Jennifer Ann D., Peralta, Lea E., Pulido, Hazel D.

Proposed name of the business

The business will be named Pedigrab Service Vehivle which PEDI means Pedicab

or the bicycle and GRAB means to get you in a convenient way.

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Tagline: “Where there’s a Road, There’s a Pedigrab!”

Proposed logo:

The logo emphasizes the main product of the business which is the pedigrab

service vehicle. The pedigrab was circle-shaped because it symbolizes community. This

kind of business is applicable for all people who are riding a vehicle. Lastly, the tagline

of the business is located at the bottom part of the logo.

Type of Business Organization

`PEDIGRAB Services will be a partnership type of business. Partnership is an

organization formed by two or more people or groups who work together for some

purpose/s. Moreover, it is an organization set by two or more people who put money in

the business and share the financial risk and profits.

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Articles of Partnership

KNOW ALL MEN BY THESE PRESENTS:

That we, the undersigned, all of legal age, residents and citizens of the

Philippines, have on this day voluntarily associated ourselves together for the purpose of

forming a general partnership under the following terms and conditions and subject to

existing and applicable laws of the Republic of the Philippines:

AND WE HEREBY CERTIFY:

ARTICLE I. Partnership Name: That the name of this partnership shall be

Pedigrab Service Vehicle and shall transact business under the said company name.

ARTICLE II. Partners Circumstances: That the names, nationalities and

complete residence addresses of the partners are as follows:

Name Nationalities Residence Address

Abungan, Lovely Joy R. Filipino Lingsat, City of San fernando La union

Acibar, Rhea Filipino Caba, La Union

Andres, Shaina C. Filipino City San Fernando, La Union

Dulay, Izza Nicole M. Filipino Sta. Ana, Agoo, La Union

Papa, Jennifer Ann D. Filipino Ambangonan, Pugo, La Union

Peralta, Lea E. Filipino Sta. Monica, Bauang, La Union
Pimentel, Karl Jay Q. Filipino San Vicente, City of San Fernando, La
Union
Pulido, Hazel D. Filipino Madayegdeg City of San Fernando, La
Union
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ARTICLE III. Capital Contribution: That the capital of these partnership shall

be the amount of P5,866,740 (Five million eight hundred sixty-six thousand seven

hundred forty pesos), Philippine currency, contributed in cash by the partners, as follows

Name Cash Contribution

Abungan, Lovely Joy R. Php 733,342.50

Acibar, Rhea 733,342.50

Andres, Shaina C. 733,342.50

Dulay, Izza Nicole M. 733,342.50

Papa, Jennifer Ann D. 733,342.50

Peralta, Lea E. 733,342.50

Pimentel, Karl Jay Q. 733,342.50

Pulido, Hazel D. 733,342.50

ARTICLE IV. Profit Ratios: That the profit and losses of this partnership shall

be divided and distributed on the ratio of the capital contributions of the partners.

ARTICLE V. Management: That this partnership shall be under Karl Jay Q.

Pimentel, as General Manager, who shall be in charge of the management of the affairs

of the company. He shall have the power to use the partnership name in otherwise

performing such act as are necessary and expedient in the management of the firm and

carry our this lawful purposes.

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Name Signature

Pimentel, Karl Jay Q. __________________________

Abungan, Lovely Joy. R. __________________________

Acibar, Rhea __________________________

Andres, Shaina, C. __________________________

Dulay, Izza Nicole, M. __________________________

Papa, Jennifer Ann, D. __________________________

Peralta, Lea E. __________________________

Pullido, Hazel, D. __________________________

Signed in the Presence of:

Prof. Josephine G. Javonitalla

(Acknowledgement)
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Vision, Mission, Goal, Objectives

VISION

To maintain a profitable operation that will continue at a reasonable cost in a

comfortable atmosphere and to establish a successful, dynamic and social enterprise.

MISSION

To provide excellent service vehicles to the students and staff of DMMMSU-

MLUC and the surrounding community of San Fernando.

GOAL

The Pedigrab Service Vehicle aims to introduce a comfy and cozy electric bike

which can help to prevent air pollution and bring up the passengers to their destination in

a fastest way. And to achieve the highest level of management and meet the target

market, Pedigrab offers ride to the passengers with precise and affordable fare.

OBJECTIVES

 To develop a service vehicle that support skill development of the drivers and

meet the need of the University community.

 To provide excellent customer services that enhances the rapport with students

and staff through responsiveness needs and request.

 To establish technical skilled job for target transportation services, including good

wages and benefits, career advancement, and opportunities for ownership.

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CHAPTER 3

MARKETING PLAN

Market Description

The Pedigrab’s primary target market is the DMMMSU-MLUC population which

composed approximately 9,000 students in the campus as well as the staffs of university.

A prime location to provide excellent service vehicles to the students and staff of the

university with their cycling needs. This segment is applicable to all ages that go out in

the campus. As the campus relatively wide, most all students and staff walk from their

classes. . A secondary market consists of the rest to the surrounding population of over

50,000 people in the City of San Fernando area.

Demand and Supply Analysis

A. Demand

To identify and understand the perception and interest of respondents in Pedigrab

service the proponents surveyed a sample population of 400 students and faculty from

four schools and 100 residences located across the route of Pedigrab.

The collected data about how often people used different modes of transportation

and common reasons to act as choice factors that customers may consider when choosing

transportation, the proponents able to understand what characteristics customers look for

in a mode of transportation.
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Table 1. Respondents Interest

In Campus Off Campus

Yes No Yes No
Pedigrab as a service 305 95 80 20
vehicle
Pedigrab, Helpful? 379 21 93 7
Pedigrab Inside/Off 336 64 82 18
campus
Total 1020 180 255 45
Reasonable Fare 360 40 70 30

Computation:

Respondents Interest:

1020+255 1275
YES= = (100) = 𝟖𝟓% 
1200+300 1500

180+45 255
No= = (100) = 𝟏𝟓%
1200+300 1500

Reasonable fare:

430
YES = 360+70 = (100) = 𝟖𝟔% 
500

70
No= 40+30= (100) = 𝟏𝟒%
500

The table above illustrate 85% of respondents were interested in a Pedigrab

service vehicle and only 15% of respondents was uninterested. The proponents also

determined the respondent’s perception of fare, 430 out of 500 respondents was

convinced for its reasonable cost and willing to pay for it.
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As a result, the demand of Pedigrab service vehicle was at high rate and highly

accepted of respondents because of its excellent and affordable services that is offered.

As projected, it is expected that the project will get about 60% of the market. The table

below will shows the projected market share of Pedigrab in the next 3 years.

Table 2. Projected Market Share

Year Projected no. of customers Market Share (60%)

2019 120,475 72,285

2020 150,899 90,539.4

2021 199,999 119,999.4

B. Supply

The Pedigrab Service Vehicle will purchase its E-trike to Racal Motorcycle

Philippines. It is the leading distributor in Philippines of motorcycles especially the E-

trike and they also offers a variety of service vehicles such as Motor, Mobile patrols and

others. Purchasing of the E-trike will be done via contract or agreement of terms and

conditions of Pedigrabs to Racal. Delivery of product will be made through Racal’s

delivery truck from the said location of Pedigrab to what cities will be delivered as

proposed site.

The Pedigrab Service Vehicle competitor will be the tricycle roaming inside the

campus and the Jeep outside the campus which also offers transportation services
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The business will purchase 30 e-trikes in the Racal Motorsale Corporation and the

10 e-trike will be used as public utility vehicle and the remaining 20 e-trike will be

display in the store and sell it to the respective customer.

Government Marketing Policies and Assistance

These are the basic industry standards that have developed over time include:

1) Insurance requirements to protect the passenger in case of accident.

2) Definition of minimum vehicle standards (lights, brakes, seating, strong wheels, seat

belts, etc.)

3) Minimum vehicle appearance standards (not rusty, upholstery in good condition, clear

markings of company name, cab number and business phone number.)

4) Safe areas of operation (stay off roads with speed limits of over 35 or 40 mph and up.)

Requirements that pedicabs cross bridges where blind spots exist on a cycle path or side

walk.

5) Requirement of purpose built pedicabs whose original intent was for transporting

passengers safely on a commercial basis. (Banning adapted vehicle configurations that

utilize components that were never manufactured to safely transport a driver and 2 to 3

passengers. I.E. Mountain bikes and homemade trailers)

6) Regular vehicle inspection to make sure requirements is being met. Inspections should

check the function of all safety systems to ensure minimum standards are being met.

(Vehicle stopping distance, visibility at night from distance, etc.)

7) Posting of fares.

8) Maximum passenger limits. (Typically 3 with seating space for all.)

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9) Establishment of pedicab operator license that requires amongst other things, legal

working status, and a valid driver’s license.

10) Regular review and updating of ordinances to fix problems that develops.

11) Capping the number of pedicabs at a certain level that is able to form a “critical

mass” of pedicabs able to meet the needs and demands of the public. (This is likely to

grow over time. Too few will hurt the industry and prevent public recognition, too many

will create excessive competition which could lead to eroding the public trust from

desperate pedicab drivers taking advantage of tourists, etc.)

12) Capping the number of pedicabs that any one fleet owner can place in the market

place to prevent monopolistic abuse of pedicab operators and help insure fair treatment to

passengers.

Source: IATSS ResearchVolume 28, Issue 1, 2004, Pages 56-66

Marketing Program

The proposed marketing programs are locally focused, where the proponents can

affect their main target market. The proponents will use marketing mix or 4Ps ( Product,

Price, Promotion and Place) to specify the approaches and strategies that address the

target market, based on the details of marketing plan.

A. Product

This aspect of the marketing mix pertains to the outputs of the business. The

proponents will offer an electric tricycle product with various designs for the target

customers.
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B. Price

The Pedigrab’s minimum fare inside the DMMMSU-MLUC campus is P5.00. The

minimum fair outside the campus is P10.00 and additional P5.00 in every one-kilometer

ride within the City route. There’s also a 20% discount to the senior citizens, person with

disability, and to the students.

C. Promotion

In order to market the proponent’s product and services, the proponents will

conduct radio advertisements. The proponents will run a coupon for a services special in

the university newspaper, MLUC Voice Publication and will also run this coupon as a

banner ad in the MLUC website. The proponents will give information about the store

and announce sale for the product, and also offer downloadable maps of the city routes.

Large tarpaulin will be hanging in front of the store and the sales marketing staff is in

charge for accommodating the customers. Flyers will also distribute along the vicinity of

the store to advertise the PediGrab to the people especially to the drivers who are willing

to buy or hire the proponent’s product.

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Figure 1. Flyer

Figure 2. Tarpaulin
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D. Place

The proponent’s content site serve as a marketing medium is located in front of

DMMMSU-MLUC for the customers’ convenience and easy acceleration of the product

Projected Sales

Below is the yearly projected sale of Pedigrab Service Vehicle. It is assumed that

there are 20 pedicabs that will go out to provide service per day and 3 pedicabs vehicles

that will be sold per month. The projected sales of pedicabs services increase by 20%

yearly.

Table 3. Projected Sales

Daily Monthly Year 1 Year 2 Year 3

(30 days) (12 months) (20% increase) (20% increase)

Services 6,000 180,000 2,160,000 2,592,000 3,110,400

Sales 150,000 1,800,000 2,160,000 2,592,000

Computation:

SERVICES SALES
Pedigrabs 10 Pedigrab 150,000(per Unit)
Minimum Fair 10 Monthly Sales 1 Unit
Round-trip 15 times
Sitting capacity 4

Formula
(Fair)(No. of Sitting Capacity) (No. of Round trips) (No. of Pedigrabs)

DAIL
P10.00
x4
P40.00
x15
P600.00
x 10
P6,000.00
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CHAPTER 4

ORGANIZATIONAL STRUCTURE OF THE BUSINESS