A FEASIBILITY STUDY OF A SHREDDED MIXTURE OF CASSAVA

STALKS AND CORN COBS IN THE PRODUCTION

OF LANTAY PARTICLE BOARD

A FEASIBILITY STUDY

Presented to

the Faculty of the Engineering, Aviation and Architecture

UNIVERSITY OF PERPETUAL HELP SYSTEM LAGUNA

Biñan City, Laguna

In partial fulfillment

of the course requirements for the degree

BACHELOR OF SCIENCE IN CIVIL ENGINEERING

ALVAREZ, Joanna Marie N.

BETINOL, Jinky Rose B.
DELLEZO, John Allen P.
REYES, Kristine Leonor V.
TUAZON, Renz Allan N.
March 2019
 EDITOR’S CERTIFICATE

This is to certify that this research paper entitled “A FEASIBILITY STUDY OF

A SHREDDED MIXTURE OF CASSAVA STALKS AND CORN COBS IN THE

PRODUCTION OF LANTAY PARTICLE BOARD”, prepared and submitted by Ms.

Joanna Marie Alvarez, Ms. Jinky Rose Betinol, Mr. John Allen Dellezo, Ms. Kristine

Leonor Reyes and Mr. Renz Allan Tuazon has been edited by the undersigned.

_____________________

Mr. Garry Bayran

iii
 Dedication

We would like to dedicate this study, firstly to the Almighty God from Whom all

wisdom and strength come.

Second is our beloved families and friends, who supported and guided us

throughout the process. They have helped us achieve our goals in developing this

feasibility study in every way possible.

J.M.N.A
J.R.B.B
J.A.P.D
K.L.V.R
R.A.N.T

iv
 Acknowledgement

It is our genuine pleasure to express our deepest sense of gratitude to the

following individual:

First of all, to our God Almighty for the wisdom and patience He imparted and for
guiding us throughout the whole process;

To our feasibility study adviser, Engr. Emiterio C. Hernandez, for his

dedication and keen interest to check the progress of the study.

To the dignified members of the panel, Engr. Teresita B. Gonzales together with
Engr. Ida P. Mandawe, Engr. Catherine Hernandez, and Engr. Rodolfo Mendoza for
giving us the opportunity to improve the research.

To our dearest friend Ms. Nelly Joy B. Piad, for imparting her skills in finance
and the unyielding support throughout the process of our study.

Lastly, to our beloved family and friends, for the encouragement and guidance
they bestowed upon us in order to complete the research.

J.M.N.A
J.R.B.B
J.A.P.D
K.L.V.R
R.A.N.T

v
 TABLE OF CONTENTS

Title Page i

Approval Sheet ii

Editor’s Certificate iii

Dedication iv

Acknowledgement v

Table of Contents vi

List of Figures

Fig. 1.1 Logo of the Company 2

Fig. 2.1. Existing Product in the Market 9

Fig. 2.2 Results for Question No. 1 26

Fig..3 Results for Question No. 2 27

Fig. 2.4 Results for Question No. 3 29

Fig. 2.5 Results for Question No. 4 30

Fig. 2.6 Results for Question No. 5 31

Fig 2.7 Results for Question No. 6 32

Fig. 2.8 Results for Question No. 7 33

Fig. 2.9 Channel Distribution 39

vi
 Fig. 3.1. Product Design 47

Fig. 3.2. Product Specification 48

Fig. 3.3. Schematic Process 55

Fig. 3.4 Plant Location 66

Fig. 3.5 Site Development Plan 68

Fig. 3.5 Floor Plan 69

Fig. 3.6 Perspective View 72

Fig. 3.7 Corn Cob 75

Fig. 3.8 Cassava Stalk 76

Fig. 3.9 HDPE Plastics 77

Fig. 4.1 Organizational Structure 89

List of Tables

Table 2.1. Competitors Analysis 13

Table 2.2. Number of Contractors 15
Table 2.3. Number of Hardwares 15
Table 2.4 Standard Deviations 16
Table 2.5 Statistical Straight Line Method for Contractors 17
Table 2.6 Statistical Straight Line Method for Hardwares 18

Table 2.7 Projected No. of Contractors Using Statistical 19

vii
 Straight-Line Method

Table 2.8 Projected No. of Hardware Using Statistical 19

Straight-Line Method

Table 2.9 Total number of contractors as of 2018 20

Table 2.10 Total number of hardware as of 2018 20

Table 2.11 Sample Size of Contractors & Hardwares 21

Table 2.12 Results for Question No. 1 26

Table 2.13 Results for Question No. 2 27

Table 2.14 Results for Question No. 3 28

Table 2.15 Results for Question No. 4 29

Table 2.16 Results for Question No. 5 30

Table 2.17 Results for Question No. 6 32

Table 2.17 Results for Question No. 7 33

Table 2.19 SWOT Analysis 38

Table 2.20 Advertising activities that will be conducted 40

by Woodify Company throughout the run of the

business for 6 months

viii
Table 2.21 Market Segmentation 41

Table 3.1 Flexural Strength 50

Table 3.2 Tensile Strength 50

Table 3.3 Flammability Test Result 51

Table 3.4 Water Absorption Result 51

Table 3.5 Machine Specifications 57

Table 3.6 Forklift Specifications 59

Table 3.7 Truck Specifications 61

Table 3.8 Machine Specifications 63

Table 3.9 Sizes 63

Table 3.10 Door Specifications 70

Table 3.11 Window Specification 71

Table 3.12 Building and Lot Area Expenses 72

Table 3.13 Power Supply 80

Table 3.14 Water Consumption 81

Table 3.15 Drinking Water Consumption 81

Table 3.16 Fuel 81

ix
Table 3.17 Communication 82

Table 3.18 Waste Disposal 82

Table 3.19 Working Schedule 84

Table 4.1 Salary 101

Table 4.2 Bonus 104

Table 4.3 Social Security System 105

Table 4.4 PhilHealth 106

Table 4.5 Pag-IBIG 108

Table 5.1 Project Cost 118

Table 5.2 Production Equipment 119

Table 5.3 Machineries & Equipment 119

Table 5.4 Office Equipment 119

Table 5.5 Furniture & Fixture 119

Table 5.6 Organizational Cost 120

Table 5.7 Other Pre-Operating Expenses 121

Table 5.8 Working Capital 121

Table 5.9 Direct Materials Cost 122

x
Table 5.10 Rental Expense 122

Table 5.11 Salaries & Wages 123

Table 5.12 Fringe & Benefits 124

Table 5.13 Communication Expense 124

Table 5.14 Office Supplies & Other 125

Table 5.15 Janitorial Supplies 126

Table 5.16 Repair & Maintenance 126

Table 5.17 Waste Disposal Expense 127

Table 5.18 Power Consumption for Office Area 127

Table 5.19 Power Consumption for Production Area 127

Table 5.20 Water Consumption 128

Table 5.21 Drinking Water Consumption 128

Table 5.22 Gasoline Expense 128

Table 5.23 Advertising & Promotion Expense 128

Table 5.24 Computation for Selling Price 129

Table 5.25 Sales Budget 129

Table 5.26 Production Budget 130

xi
Table 5.27 Raw Material Purchases 130

Table 5.28 Janitorial & Office Supplies Purchase 133

Table 5.29 Direct Labor Budget 133

Table 5.30 Manufacturing Overhead Budget 134

Table 5.31 Depreciation Expense 134

Table 5.32 Budgeted Statement of Cost of Goods Sold 135

Table 5.33 Budgeted Marketing & Administrative Expense 135

Table 5.34 Statement of Cash Flow 136

Table 5.35 Income Statement 136

Table 5.36 Statement of Final Position 137

Table 5.37 Break – Even Point 138

Table 5.38 Payback Period 139

Table 5.39 Return of Investment 140

Table 6.l Revised Withholding Tax Table 144

xii
Chapter 1 Executive Summary

A Name of the Project and Firm 2

B Project Background 3

C Brief Description of the Project/Product 3

1 Nature of Business
2 Organization Plan
3 Market Plan
4 Technical Plan
5 Financial Plan
6 Management Plan

Chapter 2 Marketing Aspect

Introduction 7

Mission Statement 8

Vision Statement 8

General objective 9

A Existing Market Situation 9

1 Uses of the Product

2 Users of the Product

3 Competitors Analysis

xiii
 4 Products of Competitors

5 Promotional Activities of Competitors

B Supply and Demand Analysis 14

Demand Analysis

A Arithmetic Straight Line

B Arithmetic Geometric Curve

C Statistical Straight Line

D Statistical Line

Historical Data

Historical Values

Determining the Sample Size

Distribution of Survey

C Survey Design 23

Sample Questionnaire

Survey Results

Supply Analysis

SWOT Analysis

D Channel of Distribution 39

E Marketing Strategy and Program 40

xiv
 Target Market

Market Segmentation

F Proposed Pricing of the Product 42

G Proposed Promotional Activities 43

Advertisement through Pamphlets and Business Cards

Online Advertisements

Chapter 3 Technical Aspect

Introduction 47

A Product Specification 48

B Manufacturing and Installation procedure 52

Proposed Manufacturing Process

Steps in the production of Particle Board

C Machineries and Equipment 56

D Plant Size 65

E Plant Location 66

F Plan Layout 67

Site Development Plan

Floor Plan

xv
 G Building Facilities 71

H Raw Materials 75

Corn Cob

HDPE Plastic

Sources of Materials

I Utility Requirements 80

Power Supply

Water Supply

Fuel

Communication

J Waste Management 82

K Fire Safety Management 83

L Material and Labor Requirement 84

Chapter 4 Management Aspect

A Form of Ownership 88

B Organizational Structure 89

C Duties and Responsibilities 90

D Qualifications 95

xvi
 E Working Conditions 101

F Standard Payday 101

G Privileges and Benefits 102

H Proposed Policies on Works 109

I Project Time Table 110

Chapter 5 Financial Aspect

Introduction 116

Project Cost 118

A Fixed Asset 119

B Pre-operating expense 120

C Working Capital 121

D Raw Materials Cost 122

E Rental Expenses 122

F Labor Cost 123

G Fringe Benefits 124

H Computation of Unit Selling Price 129

I Statement of Cash Flow 136

J Income Statement 136

xvii
 K Statement of Final Position 137

L Financial Analysis 138

M Payback Period 139

N Return of Investment 140

Chapter 6 Socio-Economic Aspect

Introduction 142

A Environment Generated 142

B Dollar earnings/savings 142

C Utilization of Agricultural Waste Materials 143

D Dispersal of Industries 143

E Taxes 144

F Others 145

Customers

Locale

Students

Future Business

References 148

Appendices

xviii
Appendix A: Raw Materials 150

Appendix B: Machinery and Equipment 151

Appendix C: Grinding of Materials 152

Appendix D: Preparation of Materials 153

Appendix E: Laboratory Testing 155

Appendix F: Laboratory Testing Results 157

Appendix G: Documentation 160

xix
 CHAPTER I
EXECUTIVE SUMMARY
A. Name of the Project and Firm

Fig. 1.1 Logo of the Company

WOODIFY COMPANY aims to sell high quality particle boards made up of corn cob

and cassava stalk. Woodify Company’s objective is to create particle boards for a better

life and planet. Since the worldwide production of corn is around 800 million tons,

therefore the company aims to assign for the proper use of the waste product made by this

crop as well as the cassava. Woodify Company wishes to maximize the use of resources

of the Philippines in terms of agricultural wastes.

From wood and moodify, comes the word Woodify. It means to make a partial or minor

change to the conventional wood shavings that is used in making particle boards that

already exists in the market.

2
LANTAY PARTICLE BOARD is 4 x 8 ft . Hardboard with 9 mm. thickness mainly

composed of pulverized corn cob and cassava stalk. The Woodify Company ensures that

the Lantay Particle Board are of outstanding quality and value for money. Lantay Particle

Board, derived from Filipino word which means “pure”, is the product of the Woodify

Company. The company is located at Sta. Rosa, Laguna. The goal of the company is to

meet the standard quality of particle board through the use of the Philippines’ agricultural

resources namely corn cob and cassava stalk.

B. Project Background

LANTAY PARTICLE BOARD is a combination of two agricultural products namely

corn cob and cassava stalks glued together by HDPE plastics that will act as a resin.

WOODIFY COMPANY is a company that is concern, not only to gain profit, but also to

help the environment lessen wastes and convert those waste to innovative engineering

solutions and to contribute to the development of the community without sacrificing the

needs of the future generation.

C. Brief Description of the Project/Product

1. Nature of Business

3
WOODIFY COMPANY is a company that seeks to meet sustainable development in the

construction industry, help the community by creating opportunities and lead them to

better way of life and aims to provide advanced engineering solution through our eco-

friendly product.

2. Organization Plan

WOODIFY COMPANY is an organized private partnership that aims to make a profit

and render services. The corporation will identify the organization’s immediate and long-

term objectives, formulate and monitor specific strategies to achieve goals. The

corporation will also entail staffing and resource allocation that is one of the most

important responsibilities of the management.

3. Market Plan

WOODIFY COMPANY’s target markets are the contractors within the vicinity of the

location of the company namely from Sta. Rosa, Biñan, and San Pedro. The corporation

will do competitive research by analyzing the competitors’ and the industry of particle

boards, align the proposed product objective then set a promotional workflow to the

market.

4
4. Technical Plan

Product Manufacturing Plan

- Collection and preparation of raw materials such as Corn Cob and Cassava Stalk

- Converting raw materials into small particles using grinding machine

- Drying of the raw materials and classifying the particles

- Blend with HDPE plastic resin and additives

- Hot press to compact the particles together and cure the resin

- Cool and finish

5. Financial Plan

- Total Project Cost

The total project cost is consisting of the total fixed asset, pre-operating expenses, and

working capital for three (3) months has a total of fifteen million four hundred sixty-five

thousand seven hundred seventy-six pesos and seven-five centavos, Php 14,590,268.85

- Sources of Financing

The source of financing is contributed by the partners amounting seven million each

individual, PHP 2,918,053.77

5
6. Management Plan

Woodify Company is a partnership business operation between five individuals who share

management and profits. The partnership gives the owners equal authority and

involvement over the day-to-day operations of the business. By doing this, overall

operation of the business is closely monitored. Since partnership requires trust, enough to

form a mutual agreement on money matters, the relationships between the owners or the

partners in turn can be affected by each decision either in agreement or disagreement

amount the owners.

6
 CHAPTER II

MARKETING ASPECT
Introduction

Wood processing is an important downstream activity of the forestry sector

because it adds economic value to log, diversifies the products that can be produced from

it, and increases the incomes and employment of involved communities. The total

national income and employment from wood processing are not known with certainty but

in the log producing CARAGA Region (Region 13), alone, the wood processing industry

directly employed close to 10,000 workers, mostly in the Agusan provinces (Paqueo and

Silfverberg 2016). This employment does not include those in the upward and forward

linkages of the industry such as the thousands of tree growers and workers in tree

plantations and those involved in the marketing of wood products. Despite its economic

contributions, however, the wood processing industry of the Philippines has been on the

decline for many years now. Of late, a perceived reason behind this is the imposition of

Executive Order (EO) 23 or total log ban. Issued in February 2011, Executive Order (EO)

23 or total log ban this order declared an indefinite moratorium on the cutting and

harvesting of timber in the natural and residual forests. With the implementation of this

EO, the number of wood processing firms in the country fell. In the case of the Caraga

region, it went down from 119 firms in 2010 to only 27 firms in 2015.

7
 Due to the growing deforestation, the natural wood is becoming more and more

scarce. This calls for development of an alternative material. As a substitute of solid and

ply wood, particle boards are introduced. Particle Boards are made in standard sizes with

thicknesses of 12, 16 and 18mm. The boards are having better properties such as high

density, high surface hardness, abrasion resistance, high durability etc. It may also be

covered with veneers for special purposes. The main users of particle board are the

building industry and the furniture industry. Particle boards are used as cheaper substitute

of wood in the manufacture of various furniture items like cupboards, shutters &

wardrobes, door and window panels, shelves, cabinets, table tops and show cases. Due to

this, it has got very good scope for marketing.

Mission Statement

Woodify Corp. aims to achieve a total service satisfaction to our customers in

terms of product quality by reducing costs through the use of eco-friendly materials and

continuous utilization of technology in terms of processes and systems.

Vision Statement

8
 Our vision is to be the leading innovative company that provides the most

comprehensive material with finest quality and eco-friendly wood-based material that

improves modern quality of life and to meet the customer’s unique needs.

General Objective

The aim of this research was to optimize the assembly of particle boards from

corn cobs and cassava stalks, the two abundantly offered and cheap agricultural residues.

The researchers aimed to overcome these weaknesses by answering the following

problems:

1. The use of alternative non-conventional local materials in the production of

particle boards.

2. The suitability of shredded mixture of cassava stalks and corn cobs in the

production of particle boards for panel production.

3. The cost of agricultural residues (corn cob and cassava stalks) as a replacement of

natural wood shavings in producing particle boards.

9
A. Existing Market Situation

1. Uses of the Product

Picture presented below was the existing product in the market made from wood
shavings.

Fig. 2.1. Existing Product in the Market

Particle board was gaining popularity as a building material due to its varieties

of application and cheap rates. Particle board was an eco-friendly material as it uses

wood wastes such as wood chips, sawdust and wood shavings mixed together with a

resin to form boards. They were sometimes used as an alternative to plywood or

medium density fiberboard to lower down the construction cost. Particle board had a

wide range of applications. Here, the researchers brief about uses of particle boards in

construction industry:

10
- Flooring:

Particle board was used as a flooring material in temporary structures where

there was less application of loads. Also, it was widely used as covering for hardwood

floors, as hardwood boards have low resistance to scratches to protect them. Wood

veneer particle board or laminated particle board is used in flooring where finished

aesthetic look is desired.

- Flooring Underlayment:

Particle board was extensively used as flooring underlayment or as a base for

parquet flooring, wood flooring, or for carpets. For this purpose, the particle boards

were treated with special chemicals and resins to make them waterproof or termite

proof.

- Partitioning or Wall Paneling:

Particle boards were used in wall partitions, as they are non-load bearing

members in the structure. For cost-effective options, particle boards could be used as

they had thermal and sound insulation properties. Laminated particle boards were

extensively used in wall panels as they gave finished walls. There was a variety of

design in laminated particle boards for wall panels.

11
- False Ceilings:

Laminated particle boards and cement particle boards were widely used in

false ceilings.  Due to their thermal insulation properties they were extensively used in

false ceilings for centrally air-conditioned rooms. Particle boards were extensively

used as ceiling tiles for auditoriums, computer centers, cinema halls and theaters and

in as display boards in commercial establishments. In building construction, it was

used in false ceiling and paneling due to its thermo-acoustic insulation properties.

- Core Material for Doors:

Particle boards were also used as a core material in solid core doors as well as

in flush doors. Particle core was the most commonly used in manufacturing doors, as

it provided flat and smooth surface for bonding with the door skin. It also had good

screw-holding capacity for fixing hinges, unlike medium density fiber board.

- Furniture:

There were numerous uses of particle board in furniture industry. Particle

boards were extensively used in residential as well as office furniture. Wood veneer

particle board were gaining popularity as they are durable and perform better in moist

environment as compared to plain particle board. So they were used in kitchen areas

and bathrooms in the form of modular kitchen cabinets, storage units, countertops,

12
 table tops, wardrobes and dressing units. Plain particle boards were useful in interior

areas like bedrooms which had beds, wardrobes, storage units, etc. It was also used in

making shoe racks, computer tables, book shelves, television cabinets, etc. Nowadays

office furniture was mass-produced by using particle boards. Readymade units of

office furniture were directly supplied to the offices with decorative laminated particle

board tops.

2. Users of the Product

Potential users of wall panels were contractors, construction firms,

homeowners, and carpenters.

3. Competitors Analysis

The following were the hardwares that currently existed in the Philippines

which may become probable competitors of Woodify Company:

13
 Table 2.1. Competitors Analysis
Hardware Name
Pribi Metal (Laguna Branch)
CPM Trading Philippines
Seldrin Construction Supplies
A. QUILLOY Construction
Glass Aluminum and UPVC
Location
Block 01 Lot 03 Grand
Riverstone Village, Brgy. Dita,
Sta Rosa, Laguna (National
Highway near Meralco Sta.
Rosa)
Sitio De Fuego, Brgy. San
Vicente, Biñan City, Launa
137 Camia Street San Pedro,
Laguna
Blk 8, Lot 21, Jaguar
St.,.Mercado Village Pulong Sta
Products Offered
Board, Wall & Gypsum
Panels, Ceiling, Construction
Materials, Depot, Hardware &
Wholesaler, Doors &
Windows, Floors &
Flooring, Metals & Iron, Other
Materials, Roof & Roofing
Materials, Tiles
Adhesive, Sealer
Compounds, Board, Wall
Gypsum Panels, Cement, Gravel
& Sand, construction
materials, Floors &
Flooring, Lumber, Metals &
Iron,  Pipes & PVC Pipe, Valves,
Fittings, Roof & Roofing
Materials, Tiles
Board, Wall & Gypsum
Panels, Ceiling, Doors &
Windows, Floors &
Flooring, Pumps, Water
Tanks, Roof & Roofing
Materials, Sewer & Drainage
Aluminum & Glass, Board, Wall
& Gypsum
14
 Cruz,Sta Rosa City Laguna Panels, Ceiling, Doors &
Windows, Steel, Stainless, Iron
Works

4. Products of Competitors

The products of the competitors include Particle boards, concrete hollow

blocks and wood or timber partition which are commonly being used as partitions

and dry walls which are the target uses of our own Lantay Particle board.

5. Promotional Activities of Competitors

The competitors promote their products by using online advertisements in

websites and social media, presentation, free sampling, brochures, and convention

show ups. These competitors are doing their best to make their products be known

by consumers.

B. Demand and Supply Analysis

Demand Analysis

15
 Demand is the quantity the consumers are willing to buy and the capacity to buy

at a given price. It is also forecast the future demand and determined the quantities should

be purchased, produced and shipped. The market of Lantay particle board can be

analyzed by considering the number of population of the community in the City of Sta.

Rosa, Laguna. In order to project demand, there are methods to be performed for accurate

results of projected demand.

Historical Data

Table 2.2. Number of Contractors

16
 YEAR Sta. Rosa Biñan San Pedro Total

2014 7 7 8 22
2015 9 8 9 26
2016 9 8 10 27
2017 10 10 11 31
2018 10 10 11 31
Source: PCAB List of Licensed Contractors for CFY Year 2014-2018

Table 2.3. Number of Hardwares

YEAR Sta. Rosa Biñan San Pedro Total

2014 91 21 96 208
2015 95 21 97 213
2016 132 24 98 254
2017 135 24 100 259
2018 166 27 103 296

The proponents tried to obtain accurate data on the number of hardwares from the

city halls of each chosen cities in Laguna (San Pedro, Biñan City and Sta. Rosa) which

were sought to be some of the distributors of the product of the company. The data

obtained were only from those specific years (2014-2018).

Using Arithmetic Straight Line, Arithmetic Geometric Curve, Statistical Straight

Line and Statistical Parabolic Projections, standard deviations were computed.

17
 STANDARD DEVIATIONS
 Area Arithmetic Arithmetic Statistical Statistical Parabolic
Straight Line Geometric Curve Straight Line Projection

Biñan 0.68 1.75 0.47 30.37

Sta. Rosa 8.13 29.24 6.96 131.99

San Pedro 0.39 1.71 0.37 99.81

Table 2.4 Standard Deviations

Based on the values presented at Table 2.4, the method which produced the lowest

standard deviation was the Statistical Straight Line Method. Therefore, the proponents

used the values from the Statistical Straight Line Method to project the number of

hardware and contractors for the years 2019 to 2023 (see Table 2.4 & 2.5). The method

included the computations as stated below for the projection of the demand for five years,

2019, 2020, 2021, 2022 and 2023 respectively

Table 2.5 Statistical Straight Line Method for Contractors

Statistical Straight Line Method (Y −Yc)2

BIŇAN
Year Y X X2 XY a b Yc Y-Yc
2014 7 1 1 7 6.2 0.8 7 0 0

18
2015 8 2 4 16 6.2 0.8 7.8 0.2 0.04
2016 8 3 9 24 6.2 0.8 8.6 -0.6 0.36
2017 10 4 16 40 6.2 0.8 9.4 0.6 0.36
2018 10 5 25 50 6.2 0.8 10.2 -0.2 0.04
Total 43 15 55 137 6.2 0.8 43 0 0.8

STA. ROSA
(Y −Yc)2

Year Y X X2 XY a b Yc Y-Yc
2014 7 1 1 7 6.9 0.7 7.6 -0.6 0.36
2015 9 2 4 18 6.9 0.7 8.3 0.7 0.49
2016 9 3 9 27 6.9 0.7 9 0 0
2017 10 4 16 40 6.9 0.7 9.7 0.3 0.09
2018 10 5 25 50 6.9 0.7 10.4 -0.4 0.16
Total 45 15 55 142 6.9 0.7 45 0 1.1

(Y −Yc)2
SAN PEDRO
Year Y X X2 XY a b Yc Y-Yc
2014 8 1 1 8 7.4 0.8 8.2 -0.2 0.04
2015 9 2 4 18 7.4 0.8 9 0 0
2016 10 3 9 30 7.4 0.8 9.8 0.2 0.04
2017 11 4 16 44 7.4 0.8 10.6 0.4 0.16
2018 11 5 25 55 7.4 0.8 11.4 -0.4 0.16
Total 49 15 55 155 7.4 0.8 49 0 0.4

Table 2.6 Statistical Straight Line Method for Hardwares

Statistical Straight Line Method

BIŇAN
Year Y X X2 XY a b Yc Y-Yc (Y −Yc)2

19
 2014 21 1 1 21 22.2 1.5 23.7 -2.7 7.29
2015 21 2 4 42 22.2 1.5 25.2 -4.2 17.64
2016 24 3 9 72 22.2 1.5 26.7 -2.7 7.29
2017 24 4 16 96 22.2 1.5 28.2 -4.2 17.64
2018 27 5 25 135 22.2 1.5 29.7 -2.7 7.29
Total 117 15 55 366 22.2 1.5 134 -17 57.15

STA. ROSA
Year Y X X2 XY a b Yc Y-Yc (Y −Yc)2
2014 91 1 1 91 24.2 19 43.2 47.8 2284.84
2015 95 2 4 190 24.2 19 62.2 32.8 1075.84
2016 132 3 9 396 24.2 19 81.2 50.8 2580.64
2017 135 4 16 540 24.2 19 100.2 34.8 1211.04
2018 166 5 25 830 24.2 19 119.2 46.8 2190.24
Total 619 15 55 2047 24.2 19 406 213 9342.6

SAN PEDRO
Year Y X X2 XY a b Yc Y-Yc (Y −Yc)2
2014 96 1 1 96 47.2 1.7 48.9 47.1 2218.41
2015 97 2 4 194 47.2 1.7 50.6 46.4 2152.96
2016 98 3 9 294 47.2 1.7 52.3 45.7 2088.49
2017 100 4 16 400 47.2 1.7 54 46 2116
2018 103 5 25 515 47.2 1.7 55.7 47.3 2237.29
Total 494 15 55 1499 47.2 1.7 262 233 10813.15

Since, the Statistical Straight Line Method yields the least among the three

method. This method was used to compute the projected demand which was projected to

the 2019-2023. Hence, this would be the numbers of the future consumers of the product

20
 Table 2.7 Projected No. of Contractors Using Statistical Straight Line Method

Year Biñan Sta. Rosa San Pedro Total

2019 11 11 12 34
2020 12 12 13 37
2021 13 13 14 40
2022 13 13 15 41
2023 14 14 15 43

Table 2.8 Projected No. of Hardware Using Statistical Straight Line Method

Year Biñan Sta. Rosa San Pedro Total

2019 31 138 57 226
2020 33 157 59 249
2021 34 176 61 271
2022 36 195 63 294
2023 37 214 64 315

Determining the Sample Size

Based on Table 2.1, the number of contractors and hardwares in the cities of

Biñan, San Pedro and Sta. Rosa were considered for the years of 2014 to 2018, arriving

21
with values 230, 239, 281, 290 and 327 contractors and hardwares respectively. With the

acquired data, it was clearly evident that the data for the record of contractors and

hardwares for years 2014 to 2017 were increasing, wherein the proponents used the

record data for 2018 to get the required number of samples.

Table 2.9 Total number of contractors as of 2018

Municipality Number of Contractors as of 2018
Sta. Rosa 10
Biñan 10
San Pedro 11
Total 31

Table 2.10 Total number of hardware as of 2018

Municipality Number of Hardware as of 2018
Sta. Rosa 166
Biñan 27
San Pedro 103
Total 296

22
 The formula below was used to total the sample size of the contractors’ population
in the first district of Laguna.

n= 20%N
Where:
n = No. of respondents
N = Total number of Contractors and Hardwares
n= 20%N = ( 20 % x 296 )=59 hardwares
n=20 %N= ( 20 % x 31 )=6 contractors

Distribution of Survey

Using Stratified Sampling, the researchers summed up the proportional allocation

given the following sample for each municipality.

number of contractors∧hardwares as of 2018 x n

n=
total contractors∧hardwares as of 2018

MUNICIPALITY SAMPLE SIZE OF SAMPLE SIZE OF TOTAL SAMPLE

CONTRACTORS HARDWARES SIZE
SANTA ROSA 2 33 35
BIÑAN 2 5 7
SAN PEDRO 2 21 23
TOTAL 6 59 65

Table 2.11 Sample Size of Contractors & Hardwares

23
 After determining the number of respondents to be surveyed in the target locale,

the researcher conducted the survey.

Computation of Contractor’s sample size

10 x 6
Sta. Rosa n= =2
31

10 x 6
Binan n= =2
31

11 x 6
San Pedro n= =2
31

Computation of Hardware’s sample size

166 x 59
Sta. Rosa n= =33
296

27 x 59
Binan n= =5
296

103 x 21
San Pedro n= =21
296
24
C. Survey Design

The researchers conduct a survey questionnaire for the proposed product which is

the combination of corn cob and cassava particle board on selected areas around Biñan,

Sta. Rosa and San Pedro Laguna. Questions regarding as to how long the contractor or

hardware has been selling the same product, purchase of plywood, factors in purchasing,

price preferences and other details that may in turn be beneficial to the proponents are

stated in the questionnaire.

Sample Questionnaire

SURVEY FORM
PROPOSED PRODUCT: CORN COB & CASSAVA STALK PARTICLE BOARD

Dear Sir/Madam:

This survey is randomly distributed among contractors and hardware who offer partition walls.

The purpose of this survey is to gain your thoughts and opinions in order to serve you new

product in the future. Your individual responses and identity are confidential and this survey

should only take a minute to complete. Thank you for agreeing to take part in this important

survey and all of your responses will be used favorably for our research study

25
COMPANY NAME (OPTIONAL):

Please complete the questionnaire below by checking the box that suits your answer.

1. What material did your company sell (for hardware) or use (for contractors) partition
wall in today’s construction? Select the most in demand.
Particle board
Concrete hollow blocks
Wood or Timber partition
Glass partition
2. How many units of the most in demand product you currently sell/use per month?

Less than 30 71-100

31-50 More than 100
51-70

3. When is product most marketable? (Select all that applies)

January July
February August
March September
April October
May November
June December

26
4. Would you be interested to buy our proposed product- particle board made from corn
cob & cassava stalk used for partition wall?

Yes
No
5. If yes, how many units of our product would you be willing to buy monthly?
Less than 20 61-80
21-40 81-100
41-60 More than 100
6. What your frequency is of purchased?
Monthly
Every 2 months
Quarterly
7. What retail price do you expect for this product?
300-499
500-699
700-899
900 and up

27
Survey Results

Biñan San Pedro Sta. Rosa Total Percentage

PARTICLE BOARD 4 15 12 31 31%

CONCRETE HOLLOW BLOCKS 3 18 30 52 52%

WOOD OR TIMBER PARTITION 0 2 9 11 11%
GLASS PARTITION 0 1 5 6 6%
TOTAL 7 36 56 100 100%
1. What material did your company sell (for hardware) or use (for contractors)

partition wall in today’s construction? Select the most in demand?

Table 2.12 Results for Question No. 1

Figure 2.2 Results for

Question No. 1

27
 It was clear from the information given in this pie chart that the most in

demand partition wall they have was concrete hollow blocks, second most used

was particle board and the other partitions did take the survey however concrete

hollow blocks was by far the most popular category, this pie chart showed a clear

variation in the most in demand partition wall that had been used/purchased.

2. How many units of the most in demand product you currently sell per month?

Biñan San Pedro Sta. Rosa Total Percentage

LESS THAN 30 3 0 0 3 5%
31 – 50 0 6 5 11 17%
51 – 70 0 4 11 15 23%
71 – 100 1 6 10 17 26%
MORE THAN 100 3 7 9 19 29%
TOTAL 7 23 35 65 100%
Table 2.13 Results for Question No. 2

28
 Figure 2.3 Results for Question No. 2

It was clear from the information given in this pie chart that most of the

respondents sold more than 100 units per month, the other number of units did

take the survey, and this pie chart showed a clear variation on the demand of a

partition wall.

29
3. When is product most marketable? (Select all that applies)

Table 2.14 Results for Question No. 3

Biñan San Pedro Sta. Rosa Total Percentage

JANUARY 1 2 10 13 5%
FEBRUARY 2 5 18 25 10%
MARCH 3 7 21 31 12%
APRIL 4 8 22 34 13%
MAY 4 12 21 37 15%
JUNE 2 7 5 14 6%
JULY 3 4 4 11 4%
AUGUST 0 0 3 3 1%
SEPTEMBER 1 4 5 10 4%
OCTOBER 1 10 12 23 9%
NOVEMBER 3 7 15 25 10%
DECEMBER 3 4 20 27 11%
TOTAL 27 70 156 253 100%

30
 Figure 2.4 Results for Question No. 3

It was clear from the information given in this pie chart that most of the

respondents sold more units in the month of May, the other months did take the

survey, this pie chart showed that partition walls sell more on the month where

the weather was good.

Biñan San Pedro Sta. Rosa Total Percentage

YES 5 12 10 27 42%
NO 2 11 25 38 58%
TOTAL 7 23 35 65 100%
4. Would you be interested to buy our proposed product- particle board made from

corn cob & cassava stalk used for partition wall?

Table 2.15 Results for Question No. 4

31
 Figure 2.5 Results for Question No. 4

It was clear from the information given in this pie chart that most of the

respondents votes No, this pie chart showed the clear variation on the

respondent’s interest in buying the partition wall, a proposed product- particle

board made from corn cob & cassava stalk.

5. If yes, how many units of our product would you be willing to buy monthly?

Table 2.16 Results for Question No. 5

Biñan San Pedro Sta. Rosa Total Percentage
LESS THAN 20 1 3 5 9 32%
21 - 40 0 1 1 2 8%
41 - 60 4 2 3 9 34%
61 - 80 0 6 1 7 26%
81 - 100 0 0 0 0 0%
MORE THAN 0 0 0 0 0%
100
TOTAL 5 12 10 27 100%

32
 Figure 2.6 Results for Question No. 5

It was clear from the information given in this pie chart that most of the

respondents was willing to order less than 20 and 41-60 units of the proposed-

product, the others did take the survey, this pie chart showed the clear variation on

the respondent’s interest in trying the proposed product- particle board made from

corn cob & cassava stalk.

6. What is your frequency of purchased?

Table 2.17 Results for Question No. 6

Biñan San Pedro Sta. Rosa Total Percentage

MONTHLY 1 3 4 8 30%

EVERY TWO MONTHS 3 6 3 12 44%

QUARTERLY 1 3 3 7 26%

TOTAL 5 12 10 27 100%

33
 Figure 2.7 Results for Question No. 6

It was clear from the information given in this pie chart that most of the

respondents was willing to order at least every two months, the others did take the

survey, this pie chart showed the clear variation on the frequency of purchasing

the proposed product- particle board made from corn cob & cassava stalk.

7. What retail price do you expect for this product?

Biñan San Pedro Sta. Rosa Total Percentage

300 – 499 4 6 9 19 70%
500 – 699 1 5 1 7 26%
700 – 899 0 1 0 1 4%
900 AND UP 0 0 0 0 0
TOTAL 5 12 10 27 100%
Table 2.18 Results for Question No. 7

34
 Figure 2.8 Results for Question No. 7

It was clear from the information given in this pie chart that most of the

respondents was expecting a retail price of at least 300-499, the others did take

the survey, this pie chart showed the clear variation that they expected a cheaper

retail price of the proposed product- particle board made from corn cob & cassava

stalk.

COMPUTATION OF TARGET MARKET/ MARKET SHARE

The Market Share of the proposed Lantay Particle Board was based on the

survey. In order to determine the target market that the proponents used, survey

questions from number 4 to 7 were used. Question number 1 served as proponents

guide to determine which of the existing partition board was the market leader

and the followers. Question number 2, the proponents were able to determine the

demand in terms of volume of consumptions/sales of the leading products. And

35
 for question number 3, the proponents were able to know as where the leading

product was most marketable.

MUNICIPALITY NUMBER OF CONTRACTORS AND

HARDWARE AS OF 2018
Sta. Rosa, Biñan, San Pedro 327

Total Population of Contractors and Hardwares = 31 + 296 = 327

Survey Questionnaires Relevant to the Determination of the Market Share

Step 1:

QUESTION NO. 4: Would you be interested to buy our proposed product-particle board

made from corn cob & cassava stalk used for partition wall?

Biñan San Pedro Sta. Rosa Total Percentage

YES 5 12 10 27 42%

NO 2 11 25 38 58%

TOTAL 7 23 35 65 100%

Most of the respondents’ answers yes which comprised 42% of the total population.

Projected No. of Contractors = Total Number of Contractors x Percentage of Positive

Answers

327 × 42 %=137.34 Hardwares and Contractors

36
 Therefore, there were 137.34 hardwares and contractors who were willing
to purchase our product.

Step 2:

QUESTION NO. 5: If yes, how many units of our product would you be willing to buy

monthly?

San Pedro Sta. Rosa Total Percentage

Biñan
LESS THAN 20 1 3 5 9 32%
21 - 40 0 1 1 2 8%
41 - 60 4 2 3 9 34%
61 - 80 0 6 1 7 26%
81 - 100 0 0 0 0 0%
MORE THAN 0 0 0 0 0%
100
TOTAL 5 12 10 27 100%
From the obtained results, 41-60 number of particle boards had the highest

percentage according to the table.

Pieces=No . of units × No. of Respondents

19 x 9 = 171 pieces 41 x 9 = 369 pieces

37
21 x 2 = 42 pieces 61 x 7 = 427 pieces

From Q5 No. of Respondents Pieces

Less than 20 19 171
21 - 40 21 42
41 - 60 41 369
61 - 80 61 427
Total   1009

Total Pieces = 171 + 42 + 369 + 427 = 1009 pieces

Total No . of Projected Monthly Production

¿ Total Projected No .of H∧C ×Total Pieces

¿ 137.34 ×1009=138,576.06

Step 3:

QUESTION NO. 6: What is your frequency of purchased?

Frequency of Purchased Percentage Pieces

MONTHLY 30% 498,873.816
EVERY TWO MONTHS 44% 365,840.798
QUARTERLY 26% 144,119.102
TOTAL 1,008,833.716

Pieces=Percentage × Total No of Projected Monthly Production

¿ 0.30 ×12 ×138,576.06=498,873.816

¿ 0.44 × 6 ×138,576.06=365,840.798

38
¿ 0.26 × 4 ×138,576.06=144,119.102

Total = 498,873.816+ 365,840.798+ 144,119.102=¿1,008,833.716

Step 4:

Biñan San Pedro Sta. Rosa Total Percentage

300 - 499 4 6 9 19 70%
500 - 699 1 5 1 7 26%
700 - 899 0 1 0 1 4%
900 AND UP 0 0 0 0 0
TOTAL 5 12 10 27 100%
QUESTION NO. 7: What retail price do you expect for this product?

Total No . of Product ¿ Produce Per Year=Total Pieces× % Positive Answer

¿ 1,088,833.716 ×0.70
¿ 706,183.602

However, the result of the survey which was 706,183.602 is too high and
since the company was just starting, the proponent only targeted 4.65% of the
available market:
706,183.602 × 0.0465 = 32,864 pieces

Therefore, 32,864 pieces was the expected annual production of Lantay Particle Board.

39
SWOT Analysis

STRENGTH WEAKNESSES

 Provides an innovation to the  Availability of raw materials

conventional particle board in the market  Other Competitors
 Good and quality product  Lack of Marketing expertise
 Gained popularity of the material
as a building material

OPPORTUNITIES THREATS

 Improve the economy of the area  Limitation for stock storage

 Attracts more customers that will  Marketing strategy of other business
make the business grow  Emergence of indirect competitors
 New product to satisfy the
customers

Table 2.19 SWOT Analysis

40
D. Channel of Distribution

Lantay Particle board manufactured are produced by Woodify Company

was directly distributed to construction suppliers, depots and furniture

manufacturers to reach large or small scale consumers in the area of Biñan and

Sta. Rosa Laguna.

Depot/Hardwares Contractors Furniture Manufacturer

Individual Consumers

Figure 2.9 Channel of Distribution

41
Marketing Strategy and Program

Product promotion was the most common form of marketing. As a starting

business the proponents were using introductory promotional devices such as

cents-off and sample as part of marketing strategies to attract customers.

Promotional activities of Woodify Company would include:

Table 2.20 Advertising activities that will be conducted by Woodify Company throughout
the run of the business for 6 month

WOODIFY COMPANY
Stages of Advertising Cycle

Stages Schedule Practice/ Activities

Introductory Stage 1st Month Distribution of pamphlets

Competitive Stage 2nd to 3rd Month Distribution of business cards

Retentive Stage 4th to 6th Month Online advertisements

42
Target Market

Woodify Company primarily targeted the areas around and Sta. Rosa,

Biñan and San Pedro Laguna.Our prospect customers were the construction

suppliers, hardwares and furniture manufacturers.

Market Segmentation

Table 2.21 Market Segmentation

BASES CONSUMER MARKETS

Geographical Location Philippines, Southern Tagalog (Region 4-A)

Country/Region CALABARZON AREA

District 1st District of Laguna
(Santa Rosa, Biñan and San Pedro)

The product of Woodify Company which the Lantay particle board was

primarily segmented to the areas of Sta. Rosa, Biñan and San Pedro Laguna.

One of the most important concepts in marketing was the market

segmentation. In this concept, the market was divided into a small homogeneous

group of segments.

43
E. Proposed Pricing of the Product

Price played a vital role in the exchange process. It was usually based on

analysis of costs, customer needs and capability, competitive prices, and

government regulatory and political mandates. Marketing could help determine

the price that the target segments were willing to pay and, in a way, that it would

adjust to the competition.

In entering the market, the company or producer must consider some

factors whether to increase or decrease their price based on their competitors and

the acceptability of the business product while it was new in the market. Also, the

company or producer must consider the financial aspect of the customer to know

how it would affect them.

The selling price of the product was based on the production cost. The

company or producers offered it for the customer to consider the cost of the

producing the product.

44
 F. Proposed Promotional Activities

Advertisements through Pamphlets and Business Cards

45
 Branding was visible in many aspects implemented in the marketing plan.

All the company colors and pictures are designed to reflect the company.

Marketing materials such as brochures and business cards would be printed at

Biñan printing press and were made to reflect the company brand and to fit the

image of the company as well as the product.

As a starting company, Woodify budget was limited to the capital that was

available. Printed materials was handed outed and placed in multiple

hardware/construction stores in Biñan, San Pedro and Sta. Rosa Laguna where

they were available to be picked up by potential customers for informative and

contacting purposes. The budget that was allotted will be P12,000 having a

quantity of 500 and a size of 2” x 3.5” for the business cards that was good for a

year and P7200 having a quantity of 800 and a size of 5.5” x 8.5” for pamphlets

that is good for a month.

Online Advertisements

46
 Social

media could be

seen as a logical extension and outlet to any businesses. Beginning with the Facebook

page that has all the important information of the company, other social media sites such

as Twitter might be considered in the future if they provided value and fit into the

company strategy. The annual budget that would be placed in Facebook advertisements

would be P 4,476 and P9, 000 for creating and maintaining the official website of the

company.

47