A Market Feasibility Study

On
Bread Lumps

Presented to the Faculty of the

Department of Business Administration of the
University of San Carlos
Cebu City, Philippines

In Partial Fulfillment of the Requirements of the

Course in
BA109N – Business Research
EH 307, 9:30-11:30 a.m., Summer 2009

By:
Aboga-a, Ariel T.
Gilbuena, Richamae R.
Manatad, Marenelle B.
Mates, Linzi Joie G.
Menchavez, Ray Lambert V.
Mendez, Anna Lou M.
Navarro, Melson G.

May 2009
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TABLE OF CONTENTS

Pag
e
ENDORSEMENT i
ACKNOWLEDGMENT ii
EXECUTIVE SUMMARY iii
LIST OF TABLES v
LIST OF FIGURES vi
LIST OF APPENDICES vi
1. INTRODUCTION / BACKGROUND OF THE STUDY
1.1 Brief Background of the Study 1
1.2 Statement of Research Objectives 2
1.3 Significance of the Study 2
1.4 Review of Related Literature 3
1.5 Scope and Limitation of the Study 6
1.6 Operational Definition of Term 7
2. RESEARCH METHODOLOGY
2.1. Research Design 9
2.2. Research Environment 9
2.3. Research Respondents 10
2.4. Sampling Plan 11
2.5. Research Instruments 13
2.6. Research Procedures 13
2.6.1. Method of data collection 14
2.6.1.1. Gathering of Data
2.6.1.2. Treatment of Data
3. The Marketing Aspect of the Study
3.1. Existing Market Situation 15
3.1.1. Competitors Profile
3.1.2. Size (manpower, asset, income)
3.1.3. Type of business (retailing, wholesaling,
manufacturing or supplier)
3.1.4. Location (business area, residential area, or highly
populated area)
3.1.5. Target Market
3.2. Marketing Strategy of Competitors (Direct and 17
Indirect)
3.2.1. Products (primary and secondary)
3.2.2. Promotion
3.2.3. Placement, channel of distribution or trade
intermediaries and logistics
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Pag
e
3.2.4. Prices
3.2.5. Positioning

3.3. Supply and Demand Analysis 19

3.3.1. Supply data of direct and indirect competitors
(existing industry)
3.3.2. Demand Analysis (basis: survey results)
3.3.2.1. Frequency and volume of consumption for the
primary product
3.3.2.2. Establish the pattern of consumption in the
past 3 years (if not available use existing data on
demand for the past 3 months)
3.3.2.3. Factors that affect the pattern of consumption
3.3.3. Supply and Demand Analysis
3.3.4. Establish the supply and demand gap (result of this
will be the basis for the sales projection) 20
3.4. Presentation and Analysis of Survey Results 30
3.5. Proposed Marketing Strategy
3.5.1. Positioning
3.5.1.1. Vision and Mission
3.5.1.2. Key Result Areas
3.5.2. Target Market
3.5.2.1. Demographic Profile
3.5.2.2. Geographic, behavioral and psychographic
profile
3.5.3. Proposed Product (s) / Services 32
3.5.4.
3.5.4.1. Key selling features
3.6. Sales Projects in Volume and in Peso 34
3.7. Proposed Promotional Activities 35
3.7.1. Form / Collateral / Materials
3.7.2. Timing or Frequency
3.8. Proposed Place / Channel of Distribution
4. The Socio-Economic Aspect of the Study 36
4.1. The Social Entrepreneurship Initiative of the
Company
4.1.1. Socio-economic Aspect of the Study
4.1.2. Contribution to Philippine Economy
4.1.3. Social Responsibilities of the Project
5. Business Sustainability 38
5.1. Assessment of Risks
5.2. Exit strategy (change ownership) 39

Bibliography vii
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Pag
e
Appendices viii
Curriculum Vitae ix

EXECUTIVE SUMMARY

For the past 5 weeks, Mahalin ang Sariling Atin (MASA) Foods

Corporation has been developing a new product called bread lumps. It

is a lumpia -like sandwich with different filling variations that can

satisfy the consumer’s taste. There is also a sauce or dip that will

complement with the bread lump’s taste.

This study aims to determine the marketability of Bread Lumps

in Cebu South Bus Terminal (CSBT). It seeks to achieve the desired

satisfaction of possible buyers of the product in the proposed place at

a profitable price with the appropriate promotion. Also, this study will

help various people in the community like the students, the

employees, potential entrepreneurs, CSBT management, passengers,

drivers and others who have interest in having a Bread Lumps station

at Cebu South Bus Terminal.

With the total population of 7600, the sample size was computed

through Sloven’s formula, having 380 as the number of respondents.

380 survey questionnaires were distributed at the terminal for the

respondents that comprised the passengers, drivers, and conductors.

 5

During May 11 to 13, 2009 the researchers went to Cebu South

Bus terminal to conduct a survey. The result of the survey was

beneficial to the MASA Foods Corporation for it turned out that 99.74%

of the respondents gave satisfactory responses.

The survey did not go easy for the researchers because of

factors such as the time constraint, the willingness of the respondents

and the place itself. The most difficult part was dealing with the

different attitudes of the respondents.

One of the most important things that the researchers should

know was about the competitor’s profile. While conducting the survey

we found out from one of the respondents about a competitor that has

the same product that we have. The researchers went to CIT to

investigate about that competitor. Competitor like waffle time,

shawarma and those who sell empanada are also important to this

study.

Based on the survey, 53.16 percent of the respondents were

willing to purchase Bread Lumps if the price ranges below 10 pesos.

Most of the respondents also preferred to have bacon as a filling and

mayonnaise as a sauce or dip. For the promotion, 38.68 percent of

them wanted to have the flyers.

The socio-economic aspect of the study talks about the

important contribution that the business can offer to the Philippine

economy by achieving the specific social responsibilities. These social

 6

responsibilities will also help MASA to understand its role to the

economy.

LIST OF TABLES

Page
Table 1 Total Population of the Study 10
Table 2 Respondents of the Study/Distribution of Questionnaires 12
Table 3 Number of Respondents taking snacks 21
Table 4 Respondents’ Preferences for Snacks 22
Table 5 Snacks price range 23
Table 6 Frequency of Respondents coming to the terminal 24
Willingness of the respondents to taste bread lumps and its

Table 7 availability 25
Preferred Price Range of bread lumps by the

Table 8 Respondents 26
Table 9 Preferred Fillings of bread lumps by the Respondents 27
Table 10 Preferred Sauce/Dips of bread lumps by the Respondents 28
Table 11 Promotional Activities/Materials of Bread lumps 29
Table 12 Sales Projection 33
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LIST OF FIGURES

Page

Figure 1 Cebu South Bus Terminal Location 9

LIST OF APPENDICES

Appendix 1 Product Logo

Appendix 2 Confirmation Letter

Appendix 3 Questionnaire

Appendix 4 Proposed rentable space at CSBT

Appendix 5 Cost per square meter of the rentable space

Appendix 6 Pictures
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CHAPTER I

INTRODUCTION

Background of the Study

What is a meal without bread? Where do you put your butter?

How do you make a sandwich? How can we make Bread Lumps?

Bread is a staple food prepared by baking dough of flour and

water. It is a symbol of our basic food or nourishment, what we need to

sustain life. Bread maybe in the form of loaves, biscuits, or rolls, forms

apart of each meal in every household and is more frequently eaten

than any other food. Bread also proven health benefits that are long –

term, balanced diet, and includes the role that whole grains serve in

reducing cholesterol and the risk of heart diseases.

People when it comes to food are very adventurous that’s why

when we eat bread we are not satisfied if there’s no filling. The fillings

should have different variations that will appeal to one’s taste.

The researchers chose Bread Lumps because of its simplicity, not

just by the way how it is being cooked but also of its ease in acquiring

the ingredients. It also comes with different fillings that consumers can

choose from that will surely satisfy their taste. Aside from the filling
 9

variations, there’s a sauce that will add a perfect combination of

flavors.

Statement of Research Objectives

This study aims to determine the marketability of bread lumps in

South Bus Terminal. This study specifically aims to:

1. To determine the acceptability of bread lumps in South Bus

Terminal;

2. To achieve the desired satisfaction of possible buyers in terms of

taste;

3. To determine the suitability of putting up a food station at Cebu

South Bus Terminal;

4. To establish an effective marketing mix strategy in terms of the

product, profitable price and promotion.

Significance of the Study

This study is significant to various sectors that have interests in

having a bread lumpia station at South Bus Terminal.

Students. It will help students develop their marketing skills and

will provide the knowledge to become better entrepreneurs in the

future.
 10

University of San Carlos. It will help provide a reference on the

study which is research-based, for the upcoming students of the

university.

Potential Entrepreneur. It will help improve the status of living of

the people in the community by providing a business that needs a little

amount of capital.

Government. It will benefit the government by means of larger

collection of tax.

South Bus Terminal Management. It will benefit the management

by having a profit that can help improve the place.

Passengers. It will bring them the satisfaction of enjoying

something to eat while travelling.

Drivers. It will give them a choice of snack that is of good quality

that they can buy within the terminal.

Other Researchers. It will help other researchers to get ideas that

can relate to their study.

Review of Related Literature

Bread has been eaten with other food since Neolithic times. A

sandwich is a food item made of one or more slices of bread with one

or more layers of a filling. The bread can be used as is, or it can be

coated with butter, oil, mustard or other condiments to enhance flavor

 11

and texture. Sandwiches are a widely popular type of food. They are

taken to work, school or picnics to be eaten as part of a packed lunch.

They generally contain a combination of salad vegetables, meat,

cheese, and a variety of sauces. They are widely sold in restaurants

and cafes. In the United States, the sandwich was first promoted as an

elaborate meal at supper. By the early 20th century, as bread became

a staple of the American diet, the sandwich became the same kind of

popular, quick meal as was widespread in the Mediterranean.

Shawarma is thinly sliced cuts of meat, like chicken, beef, goat,

lamb, and sometimes turkey, rolled into a large piece of flatbread or

pita that has been steamed or heated. Inside the pita, foods like

pickles, vegetables, and even French fries are added. In the

Philippines, shawarma is a popular food found at both street side and

indoor shopping mall stalls, mostly in Metro Manila and other major

cities, such as Cebu City. Its popularity began during the 90s, but has

long passed being a fad. Shawarma is a popular snack or light meal.

An empanada is a stuffed bread or pastry. The name comes

from the Spanish verb empanar, meaning to wrap or coat in bread.

Empanada is made by folding a dough or bread patty around the

stuffing. The dough, made with flour, water and fat of pella, is prepared

according to the how it is to be cooked, frying or baking being the most

common. In Spain, empanadas are usually large and circular in size

 12

and are cut into smaller portions for consumption, whereas in South

America empanadas are normally small and semi-circular. Empanada

may have its origin in the fatay, an Arab dish which was introduced in

Spain during the Arabic occupation of the Iberian Peninsula. In Spain

the dish is known as Galician empanada or simply empanada. The dish

was carried to South America by colonists, where it acquired its most

popular form. Filipino empanadas usually contain ground beef or

chicken meat, potato, chopped onion, and raisins in sweetish wheat

flour dough. However, empanadas in the northern Ilocos region are

very different because it is made of a savory filling of green papaya,

monggo beans and, upon request, chopped Ilocano sausage

(Longaniza) and/or an egg yolk and the dough used to enclose the

filling is thin and crisp, mostly because Ilocano empanada uses rice

flour, coloured orange with achuete, and is deep-fried rather than

baked.

A waffle is a batter-based cake cooked in a waffle iron patterned

to give a distinctive and characteristic shape. There are many

variations based on the type and shape of the iron and the recipe

used. Waffles were first introduced to North America in 1620 by

Pilgrims who brought the method from Holland. Thomas Jefferson

brought a waffle iron from France, and waffle frolics or parties became

popular in the late eighteenth century. There are different fillings

inside the waffle such as cheese, hotdog, chocolate, butter, honey

 13

melon. Waffles were first introduced to North America in 1620 by

Pilgrims who brought the method from Holland. Thomas Jefferson

brought a waffle iron from France, and waffle frolics or parties became

popular in the late eighteenth century.

The researchers came up with the product called Bread Lumps

because of the gathered information from some related literature. It is

somewhat related in shawarma, sandwich, empanada, and waffle

because of the main ingredients which is the bread. Inside the bread

are the fillings. It can be vegetables, chocolate, cheese and anything

you want to put. The researchers try to improve the ingredients and

procedure in preparing shawarma, sandwich, empanada and waffle

that is why they come up of the product Bread Lumps which has a

unique taste and has a feeling of satisfaction.

Scope and Limitations of the Study

This research study is a course requirement of BA109N –

Business Research. The time frame of this study covers the 2009

Summer of the academic year 2009-2009 for a two-month period (April

to May). The purpose of this study is to determine the marketability of

bread lumps at South Bus Terminal.

 14

The study is limited to the results of the survey questionnaire

distributed at South Bus Terminal. The respondents comprised all the

passengers, drivers and conductors.

While conducting the study, the researchers encountered some

constraints that might lead a bearing on the outcome of this study.

These factors were faced by the researchers are the following listed

below:

1. Some of the passengers were not willing to answer the

survey questionnaires and taste the product;

2. The time of parking of the buses were limited;

3. The place of research was not good for the health

because of factors like smoke and dust.

Operational Definition of Terms

Terms that are essential to the study are defined operationally in

this section for clarity and ease of understanding.

Bread

This refers to a staple food made from flour or meal mixed with

other dry and liquid ingredients, usually combined with a leavening

agent, and kneaded, shaped into loaves, and baked.

Bread Lumps

This term refers to the combination of bread and lumpia.

Bus Terminal
 15

This term refers to a structure where city or intercity buses stop

to pick up and drop off passengers.

Competitors

This term refers to the one that competes with another, as in

sports or business; a rival.

Conductors

They are also known as passenger callers. They assist the driver

in managing the passengers.

Descriptive research

A research design conducted to illustrate and determine patterns

or characteristics of variables in particular instances or events.

Lumpia

This term refers to the one that is filled with ground pork or beef,

minced onion, carrots, and spices with the mixture held together by

beaten egg.

Passenger

This term refers a person who travels in a conveyance, such as a

car or train, bus without participating in its operation.

Snack

This term refers to something to eat in a hurried manner or light

meal.

Gross Domestic Product (GDP)

 16

Is a basic measure of an economy's economic performance; is

the market value of all final goods and services produced within the

borders of a nation in a year.

CHAPTER II

RESEARCH METHODOLOGY

Research Design

This study utilized the descriptive survey method of research.

Researcher-made questionnaire was adopted as the main instruments

of data collection, which were supplemented with random unstructured

interviews for verification purposes.

Research Environment

This study was conducted in Cebu South Bus Terminal located at

N. Bacalso Avenue Cebu City (see Figure 1) as the potential location in

conducting the survey. As of now the bus terminal is under renovation

and all food establishments operated were located outside the

terminal.
 17

Figure 1. Cebu South Bus Terminal Location

Research Respondents

The respondents of this study were the Cebu South Terminal

passengers, drivers and bus collectors. There were 7,600. From the

total population, 380 respondents were selected to participate in this

survey.

Table 1

Total Population of the Study

N=7,600

RESPONDENTS TOTAL POPULATION PERCENTAGE

Passengers 7,000 92%

Drivers 300 4%
 18

Collectors 300 4%

Total 7,600 100%

Table 1 shows the total population of the Cebu South Bus

Terminal (passengers, drivers and collectors). It clearly reveals that the

passengers make up the majority (92%) of the total population.

Sampling Plan

The sampling plan method used in this study is the Sloven’s

formula. This formula gives the number of samples needed from a

certain population to get a statistical result with a certain error.

n= N____

(1+Ne2)

= 7,600______

(1+7,600(0.05)2)

= 7,600__

20
 19

n= 380

Where:

n = the number of samples needed from the certain

population

N = the certain population or the total population

e = margin of error which is equal to 0.05

(the preferred confidence level in sampling is 95%)

Convenience sampling was also used because it allows the

researchers to gather data from respondents who are conveniently

available to provide necessary information.

Table 2

Respondents of the Study/Distribution of Questionnaires

n=380

RESPONDENTS NUMBER OF RESPONDENTS PERCENTAGE

Passengers 350 92%

Drivers 15 4%

Collectors 15 4%
 20

Total 380 100%

Table 2 shows the sample size needed from the total population

from each of the three groups of respondents namely the passengers,

drivers and collectors. This data suggests that majority of the

respondents (92%) will be from the passengers.

Research Instruments

The researchers conducted a survey using self- administered

questionnaires formulated by following the proper guidelines. There

were 380 questionnaires distributed to the passengers, drivers, and

bus collectors. The questionnaire consists of eleven questions arranged

in a manner which facilitates respondent’s replies.

Research Procedures

The survey method using self – administered questionnaires was

used to gather primary data. These survey questionnaires were used to

obtain the necessary information.

The secondary data were gathered through actual inquiry in

Cebu South Bus terminal management who provided the researchers

 21

the total population of passengers, drivers and bus collectors. The

researchers also interviewed some of direct and indirect competitors to

determine their price range as well as the promotional activities.

Other reliable sources were gathered through scanning previous

studies in Business Administration Department, some other related

articles and made use of internet for more information.

Method of Data Gathering

Gathering of Data

The researchers made self – administered questionnaires were

directly and personally handed to the respondent upon his permission

and acceptance. Data were collected upon the submission of the

questionnaires by the respondents after answering all the questions in

the questionnaires together with the other information gathered from

the secondary data and other reliable sources.

Treatment of Data

The data gathered were tallied, tabulated and statistically

treated. Descriptive analysis was subsequently made so that it could

 22

become useful to the researchers for the purpose of determining the

marketability of Bread Lumps.

CHAPTER III

THE MARKET STUDY

The market feasibility is the aspect that deals with the

acceptability of the product to the consumers. It interprets the results

of the survey whether the product appeals to the target market, how

the target market wants to receive the product and what are the

probable ways to market the product to the public.

Existing Market Situation

Competitors Profile

The canteen of Cebu Institute of Technology located at N.

Bacalso Avenue, Cebu City serves snacks and lunch that enjoy the
 23

patronage of student, teachers, and the non-teaching staff. It is

accessibly located in the campus. They serve at all school hours. One

of their products is the New York Sandwich which is the same as the

Bread Lumps. New York Sandwich is deep fried bread which has

fillings.

Waffle Time Incorporation is the first and original purveyor of

quality waffles in a cart, with a vast selection of delicious and exciting

flavors to choose from. It began in 1998 and has grown to be one of

the most successful food stands around the country and is still

expanding to serve more Filipinos. Waffle Time offers franchising.

There are 190 outlets all over the Philippines, Luzon has 118, Visayas

has 45 and in Mindanao there are 27 outlets. It began in 1998 and

has grown to be one of the most successful food kiosks around the

country and is still expanding to serve more Filipinos.

Size

New York Sandwich was served by the employees in the canteen

of CIT. Its daily sales of the New York Sandwich were about P400.00 to

P600.00. Waffle Time Incorporation is expanding their business and

they need manpower to help them serve the customers.

 24

Type of Business

A business is a legally recognized organization designed to

provide goods and/or services to consumers. The New York Sandwich is

a small business that was served in the school canteen. Waffle Time is

an Incorporation that opens franchising and engaged in direct selling.

Location

Choosing the right location is important. Most of the businesses

located in areas which are highly populated like in schools and

supermarkets. New York Sandwich and Waffle are the indirect

competitors of Bread Lumps. New York Sandwich is sold at the canteen

of Cebu Institute of Technology while Waffle Time has 25 outlets in

Cebu that are mostly in malls like SM, Gaisano Main, and Metro Colon

and Ayala.

Target Market

In every business it is important to define the target market to

determine if the product/service will be acceptable. The target market

of the New York Sandwich is the total population of the school who are

the students and the employees. The target buyers of Waffle Time are

the shoppers and walk-in buyers.

 25

Marketing Strategy of Competitors

Products

The researcher found out that there is no direct competitor

identified in the area that serves the same as Bread Lumps. One of the

indirect competitors of Bread Lumps in the market is the New York

Sandwich. Based on the available information, New York Sandwich is

thinly sliced bread with filling which offers two fillings to choose from

which are hotdog with cheese and bacon with cheese. They had

captured the taste of the students. It is due to their location and

pricing. Waffle Time is also one of the indirect competitors. It offers

varied flavors to their customers like German cheese franks, American

hotdog, Canadian bacon, chocolate and many more. Waffle Time gives

a high standard of service and quality products to satisfy the customer.

Promotion

Promoting the product is the manner of letting the public knows

about the existence of the product. The competitors promote the New

York Sandwich by displaying their product on the school canteen.

Waffle time is visible on their promotional activities. An example of a

promotional activity from waffle time is advertising on television,

 26

sponsoring some event and showing the display of their products from

their stalls to attract customers.

Channels of Distribution/ Placement

The main intermediary for the New York sandwich is the school

and for the waffle time are also the schools and the malls. The

competitors used one distribution channel through direct selling from

their own stalls whereby buyers have an easy way of buying their

product.

Prices

Price is a monetary value which is assign to a product or

services. Price is the most flexible variable in the marketing mix that

business people use. The price of flavored New York Sandwich is

P10.00 per bread. Waffle Time offers an affordable price to their

customers. Their prices range from P10.00 to P18.00 depending on the

flavors.

Positioning

The competitors position their products in a highly populated

area. The competitors position their product in a way they get

 27

favorable perception of the customers and investors and also to

provide benefits to customers.

Supply and Demand Analysis

Supply data analysis of competitors

The researchers went to Cebu Institute of Technology (CIT) to

verify the information that its canteen is selling a similar product like

Bread Lumps and confirmed that it was indeed true. The canteen is

selling it at ten pesos (P10.00) each and could sell 40 to 60 pieces a

day during regular school days.

Demand Analysis

In this section, the researchers made a numerical evaluation of

the market by computing its potential demand which is the maximum

quantity the consumers could buy in a determined period of time.

The computation for the potential demand for bread lumps in a

week:

[ 98% * 40% * 99.73% ] * 7600 = 2,928 bread lumps per

week

(see tables 3 , 6 , 7 & 1)

Potential demand in a day is computed by:

2,928 / 7 days = 427 bread lumps a day

 28

Within three to four (3-4) hours, the researchers (composed of

seven members) are able to prepare 250 pieces of bread lumps based

on their practice.

Presentation and Analysis of Survey Results

This section presents, analyzes and interprets the data collected

in this study. The information pertains to the market feasibility of

bread lumps to the Cebu South Bus Terminal passengers, drivers and

collectors. Secondary and support data were gathered from informal

interviews with some of the respondents. The data are presented in

tables.

Table 3

Number of Respondents taking snacks

n=380

RESPONSES FREQUENCY PERCENTAGE

YES 372 98%

NO 8 2%

Total 380 100%

Table 3 indicates that there are 372 respondents (98%) were

taking their snacks regularly. On the other hand, 8 respondents, (2%)

 29

do not eat snacks because they want to save money and instead of

having snacks they eat heavy breakfast and lunch. This shows that

majority of the respondents take snacks and may consider bread

lumps as one of the snack items they may be taking in.

Table 4

Respondents’ Preferences for Snacks

n=372

SNACKS FREQUENCY PERCENTAGE

Bread 214 58%

Burger 63 17%

Donut 28 7%

Sandwich 32 8%

Others 35 10%
 30

Total 372 100%

Highlighted in table 4 is the data concerning the respondents’

preferences for snacks. 56% of the respondents eat bread for snacks.

There were only 372 as the sample size for this table because base on

table 3 there are only 372 respondents who were taking their snacks

regularly. This indicates that there is a favorable demand of bread

lumps as possible snacks of the respondents.

Table 5

Snacks price range

n=372

PRICE FREQUENCY PERCENTAGE

Below 10 pesos 35 9%

10 to 15 pesos 82 22%

16 to 20 pesos 122 33%

More than 20 pesos 133 36%

Total 372 100.00%

 31

Table 5 contains the data about how much the respondents

spent for their snacks. 36% of the respondents spent more than 20

pesos for each snack. Ranking in second was 16 to 20 pesos spending

(33%). With the results above, the respondents can afford bread lumps

whenever it is available at the Cebu South Bus Terminal since the

proposed price is within the price range preferred by majority of the

respondents.

It is shown in table 6 the frequency of respondents coming to

Cebu South Bus Terminal. 40% of the respondents visit Cebu South

Bus Terminal weekly, 2 to 3 times. Those respondents that go to the

terminal daily were usually the drivers and conductors. And since it is

summer vacation, the 34 percent of the respondents were at the

terminal to visit provinces. The 153, (40%) respondents can be the

target market of breadlumps.

Table 6

Frequency of Respondents coming to the terminal

n=380

FREQUENCY PERCENTAGE
 32

Daily 98 26%
A number of days in a

week (twice, thrice, etc.) 153 40%

Others 129 34%

Total 380 100%

Table 7

Willingness of the respondents to taste bread lumps and its availability

n=380

RESPONSES RESPONDENTS PERCENTAGE

YES 379 99.73%

NO 1 0.27%

Total 380 100 %

Table 7 reveals that 99.73 percent of the respondents wanted to

taste Bread Lumps and are willing to purchase it at the CSBT whenever

it is available and were eager to make it available at the South Bus

Terminal. Only 0.27 percent or one of the respondents gave a negative

response.
 33

With the data above, the researchers computed for the possible

demand in a day given the total estimated population of passengers,

drivers and collectors that is 7,600.99.73 percent of 7,600 is 7,579,

which is the estimated demand in a day based on the survey results.

Table 8

Preferred Price Range of bread lumps by the Respondents

n=380

PRICE RESPONDENTS PERCENTAGE

Below 10 pesos 202 53%

10 to 15 pesos 116 30%

16 to 20 pesos 48 13%

More than 20 pesos 14 4%

Total 380 100%

Table 8 highlights the preferred price of bread lumps by the

respondents. 202 (53%) of the respondents prefers that the price of

 34

bread lumps would be below 10 pesos. This means that the

researchers will come out with a strategy in order for the respondents

to allocate higher price for bread lumps since in table 5, they can

spend for snacks of more than 20 pesos.

The results of the preferred fillings of bread lumps are presented in

table 9 below.

Table 9

Preferred Fillings of bread lumps by the Respondents

n=380

FILLINGS RESPONDENTS PERCENTAGE

Bacon 156 41%

Hotdog 71 19 %

Tuna 45 12%

Corn Beef 32 8%

Chicken 68 18%

Others 8 2%

Total 380 100

 35

Bacon as a filling turn-out to be the most preferred filling. 156

respondents, (41%) of 380 respondents preferred bacon to be the

filling for the bread lumps. Aside from bacon others also preferred

hotdog (2nd in rank) and chicken (3rd in rank). Therefore, whenever

bread lumps will be available at Cebu South Bus Terminal, bacon will

be the filling of bread lumps, followed by chicken and hotdog.

Table 10

Preferred Sauce/Dips of bread lumps by the Respondents

n=380

SAUCE/DIPS RESPONDENTS PERCENTAGE

Mayonnaise 177 47%

Ketchup 99 26%

Gravy 52 14%

Sour and Cream 23 6%

Salsa 20 5%

Others 9 2%

Total 380 100%

 36

Presented in table 10 above are the preferred sauce and dips for

bread lumps as an additional twist of bread lumps. Mayonnaise, 47% is

the most preferred dip, followed by ketchup and gravy. Thus,

mayonnaise will be maximized as the sauce or dip for the bread lumps.

Table 11

Promotional Activities/Materials of Bread lumps

n=380

PROMOTIONAL MATERIALS RESPONDENTS PERCENTAGE

Flyers 147 39%

Newspaper 98 26%

Radio Advertisement 85 22%

Others 50 13%

Total 380 100%

For table 11, 39 percent of the respondents, (147) preferred

bread lumps to be advertised through flyers. Newspaper ranked

 37

second at 26 percent and next was radio advertisement for 22 percent.

The respondents who chose others liked it to be advertised in

television or promoting it personally.

Proposed Marketing Strategy

Positioning

Vision

MASA Foods Corporation is a business oriented organization of

young entrepreneurs aiming to satisfy customer needs through

providing quality products with affordable prices at suitable

places and creative promotion.

Mission

The company’s duty is to delight it’s customers by producing

scrumptious bread lumps with exciting flavors to choose from and to

achieve high efficiency with the resources available.

Target Market
 38

The possible buyers of the product are the passengers in Cebu

South Bus Terminal (CSBT) which located in N. Bacalso St. Cebu City as

the primary buyers. It also caters to the employees of nearby

establishments as the secondary consumer. Choosing the location is an

advantage since the product is new in the place. The research

considers the buying power of the passenger form their budget for

snacks based on survey results.

In consideration of the consumer behavior at Cebu South Bus

Terminal (CSBT), the main purpose of buying the proposed product is

to have it as a snack or a viand while waiting for their trip.

Target Buyer

The researcher is targeting the passenger at Cebu South Bus

Terminal who will be waiting for their trips. There is no age limit to this

food all ages can eat it.

The Bread Lumps is not the same to the typical bread seen in

bakeshops from what the researcher’s proposed product is. This

product will soon be exported abroad and introduce this product as a

Filipino’s Bread that can compete to other imported goods.

Geographical Location of the Buyer

The geographical location of the buyer would be at Cebu South

Bus Terminal located in N. Bacalso St. Cebu City. There are 7,000
 39

passenger, 300 drivers and 300 conductors approximately. And

according to the survey with 380 respondents, majority of them are

willing to buy the proposed product.

Proposed Product

The researchers proposed is Bread Lumps’ a bite-sized made of

bread stuffed with ham and cheese. It has good quality, tasty yet

affordable in original taste served with two dip sauce such as gravy

and sour cream. It comes in a three pieces, packed in paper box

weighing 75 grams.

Sales Projects in Volume and in Peso

Projection of sales is an important part of a plan. Part of the sales

projection work is planning for a better performance in the future and

correcting past performance with which the management is not

satisfied.

Table 12 shows the sales projection for the first 4 weeks of

operation and the next two months. The selling price per unit is based
 40

on the survey result that majority (53 %) of the respondents are willing

to spend below 10 pesos for a bread lumps (see table 8).

The researchers assumed that for the first four weeks of

operation, the sales will increase by 5 % weekly. For the next two

months, sales will decrease by 5 %.

The factors that the researchers find that will cause the change

in volume are as follows:

- new product attracts customers for the first 4 weeks;

- promotions will appeal to the target market;

- application of the law of diminishing marginal utility.

Table 12

Sales Projection

Sellin
g
Price
per
unit Sales Cost per unit Total cost
Period Units (peso) (peso) (peso) (peso)

Week 1 2380 9 21420 6.72 15993.60

Week 2 2499 9 22491 6.72 16793.28

 41

Week 3 2624 9 23616 6.72 17633.28

Week 4 2755 9 24797 6.72 18513.60

1st
month 10258 9 92324 6.72 68933.76

2nd
month 9745 9 87705 6.72 65486.40

3rd
month 9258 9 83322 6.72 62213.76

The selling price of 9 pesos was computed by considering the

cost of the ingredients and adding the rent cost for the food cart if the

researchers will pursue the study. Assuming that there will be no

change in the supply in a month the total cost will be 55,900 pesos a

month: cost of ingredients will be 50,400 pesos (1680*30) plus food

cart cost of 5,500.

The cost per unit will be 7.45 (55900 pesos/7500 unit a month)

and with a mark up of 17.19 percent (1.55/9) the selling price per piece

of bread lumps will be 9 pesos.

Proposed Promotional Activities

The researchers would like to advertise the said product through

distribution of flyers. The researchers have planned other promotional

activity:
 42

For the first week of operation, there would be a free iced tea

juice drink for every purchase of Bread Lumps but limited to first 50

customers only.

For a monthly promotion, there will be a pick a prize scheme for

every purchase of Bread Lumps that would catch customer’s attention,

interest in buying the product and probably would like to repeat

transaction again and again.

Placement

The availability of the product at a particular time is very

important to the consumer and the seller. The location of the proposed

product is suitable at Cebu South Bus Terminal which is located in N.

Bacalso St., Cebu City.

The primary distribution of Bread Lumps will be through the food

cart and also through personal selling by the individual members to

schools and residence area.

Price

The price of the product greatly affects the buying decision of

the consumers. It depends on the level of price, the competitive

position and the market share of the business that will determine if the

products marketability will enhance or decline. Cost based pricing

 43

would be used in measuring the price of the product by the researcher.

Bread Lumps will be sold at a price of Php. 20.00 per 75 grams serving

(three pieces).

CHAPTER IV

THE SOCIO-ECONOMIC ASPECT OF THE STUDY

The Social Entrepreneurship Initiative of the Company

Socio-economic aspect of the study

To be worthy of financing a project, the researchers will not just

focus towards profit generation but also social economic benefits. The

MASA Foods Corporation believes that producing a new kind of snack

will give satisfaction towards target customers.

This chapter highlights the uses and benefits of the company can

offer:

1) To identify the company’s contribution to the Philippine

economy.
 44

2) To identify the social responsibility of the study.

Contribution to the Philippine Economy

The food industry in the Philippines specifically the fast-food

business is considered as one of the top industries in the country. The

results constitute a large part in knowing the Gross Domestic Product

(GDP) that the country annually receives. The facts are taken from the

annual reports that the government is showing to the people at the

end of the year.

MASA aims to conduct business that would help both the

researchers and the government, which is to give service to the

society. It will also help the researchers develop their abilities and to

gain experiences towards future uses. The study will also help the

government through the payment of taxes, business permits, Mayor’s

permits, BIR, BFAD, and other business government agencies which

will be used as the nation’s budget for the future plans for the

development of our country.

Social Responsibility of the Project

MASA Foods Corporation as a business entity has a responsibility

to make sure that it would serve not only for personal interest, but also

that of the network it belongs, which we refer as community. And by

 45

providing a snack that would cater the taste, expectations and hopes

of its customers by giving the best possible product the company can

produce.

MASA aims to conduct business that would help many people in

the community by creating jobs and possible career on young

entrepreneurs that is planning to start a business with just a minimal

amount of capital.

CHAPTER V

BUSINESS SUSTAINABILITY

Assessment of Risks

1. These are the following possible risks that the business/company

will be facing:

• Direct/indirect competitors

• Promotion

• Production method

• Supply and demand

 46

This is how the researchers assess the risks:

Direct/Indirect competitors

The indirect competitor, which is the waffle time, may have its

own vulnerability we can take advantage of. Since waffle is an old

product, consumers may prefer to taste a new one. The product can

have the same price rates with the waffle time and do a better job with

the food we serve as to making the customer’s money worth it.

The closest indirect competitor is the New York sandwich in CIT.

The product can be improved through innovations like the different

fillings to choose from and the sauce or dips available.

Promotion

The product will be assessed in order to accommodate the needs

of the consumers it wants to serve. To do this, the group will use flyers

and conduct a free tasting of the product. In addition, the group will

also ask from the people serving the market.

Production method

The researchers will depend on the demand of the market to

produce more or less products in a day.

Exit strategy

The MASA Foods Corporation will make the business attractive

for possible prospective buyers that are interested in pursuing this

 47

study. Some members of the corporation can also continue the

business. The members will share all the gains and loses regarding

these strategies.

BIBLIOGRAPHY

http://www.waffletime.com/about.html

http://en.wikipedia.org/wiki/Empanada

http://en.wikipedia.org/wiki/Waffle

http://en.wikipedia.org/wiki/Shawarma

http://en.wikipedia.org/wiki/Bread

Business Research, Concepts and Applications by Divina M. Edralin, 2nd

edition, 2002
 48

APPENDICES
 49

Promotional Paraphernalia
 50

Product
 51

Dear Respondent(s),

Good day!

We are fourth year Management Accounting students from

University of San Carlos conducting a marketing research on Bread
Lumps in fulfillment of our BA109N (Business Research).

Bread Lumps is a deep fried snack made from a slice of bread

made thinly and rolled with fillings. This snack will appeal to one’s
taste and hunger.

We would request you to answer this questionnaire as honestly

as possible. Rest assured that your answers will be used for research
purposes only.

Sincerely yours,

Ray Lambert Menchavez

President
 52

Respondent’s Identity:

Name (optional): ___________________________

Age: _____
Gender: _____

Please put a check mark on the corresponding space beside the

choices. Please do not leave an item unanswered.

1. Why are you coming to South Bus Terminal? Are you a:

_____ Passenger
_____ Others, please specify__________________

2. Do you eat snacks?

_____ YES _____ NO

3. What food do you usually eat for snacks?

_____ Bread
_____ Burger
_____ Donut
_____ Sandwich
_____ Others, please specify____________________

4. How much do you usually spend for snacks?

_____ Below 10 pesos _____ 15 to 20 pesos
_____ 10 to 15 pesos _____ More than 20 pesos

5. How often do you come here in South Bus Terminal?

_____ Daily
_____ Number of days in a week
_____ Others, please specify__________________

6. Are you willing to taste a new product, specifically Bread Lumps?

_____ YES ______ NO

7. Do you want this product to be available in South Bus Terminal?

_____ YES ______ NO

8. At what price range are you willing to buy Bread Lumps?

_____ Below 10 pesos
_____ 10 to 15 pesos
_____ 15 to 20 pesos
_____ More than 20 pesos
 53

9. What fillings do you want our products to have?

_____ Bacon
_____ Hotdog
_____ Tuna
_____ Corned beef
_____ Chicken
_____ Others, please specify_______________

10. If there is a sauce or dip, what would you want?

_____ mayonnaise
_____ ketchup
_____ gravy
_____ sour and cream
_____ salsa
_____ Others, please specify________________

11. How do you want Bread Lumps to be promoted?

_____ Flyers
_____ Newspaper
_____ Radio advertisement
_____ Others, please specify__________________

Curriculum

Vitae
 54

Ariel T. Aboga-a

Personal Data
Address: 58-C Ascencion St. Urgello Cebu City
Age: 19
Birth date: November 1, 1989
Gender: Male
Father’s Name: Elio S. Aboga-a
Occupation: N-O-N-E
Mother’s Name: Arlene T. Aboga-a
Occupation: Businesswoman

Educational
Background College

University Of San Carlos

 55

P. Del Rosario Street,

Cebu City, 6000 Philippines
Present

High School

Ipil Heights Elementary School

Ipil, Zamboanga
2002-2006

Elementary

Marian College
Ipil, Zamboanga Sibugay
1996-2002

Richamae R. Gilbuena

Personal Data
Address: 5-U Alviola St. Villagonzalo
Age: 19
Birth date: June 18, 1989
Gender: Female
Father’s Name: Richard S. Gilbuena
Occupation: Seaman
Mother’s Name: Ma. Elena R. Gilbuena
Occupation: Housewife

Educational
Background College

University Of San Carlos

 56

P. Del Rosario Street,

Cebu City, 6000 Philippines
Present

High School

University Of San Carlos -GHS

O- Alcantara St. Ceby City
2002-2006

Elementary

Tejero Elementary School

Mj. Cuenco, Cebu City
1996-2002

Marenelle B. Manatad

Personal Data
Address: Purok 7 CCF Nangka, Consolacion,
Cebu
Age: 20
Birth date: October 28, 1989
Gender: Female
Father’s Name: Nicanor C. Manatad
Occupation: Seaman
Mother’s Name: Melanie Maria B. Manatad
Occupation: Housewife

Educational
Background College

University Of San Carlos

 57

P. Del Rosario Street,

Cebu City, 6000 Philippines
Present

High School

University Of San Carlos -GHS

O- Alcantara St. Ceby City
2002-2006

Elementary

University Of Southern Philippines

Mabini St. Cebu City
1996-2002

Linzi Joie G. Mates

Personal Data
Address: MBEAB, Lapulapu City
Age: 18
Birth date: August 12, 1989
Gender: Female
Father’s Name: Joel B. Mates
Occupation: Airforce
Mother’s Name: Rosaline G. Mates
Occupation: Housewife

Educational
Background College

University Of San Carlos

P. Del Rosario Street,
 58

Cebu City, 6000 Philippines

Present

High School

Colegio De La Immaculada Concepcion

Gorordo Ave., Cebu City
2002-2006

Elementary

Asian Learning Center

Brgy. Pajo, Lapulapu City
1996-2002

Ray Lambert V. Menchavez

Personal Data
Address: Minglanilla, Cebu
Age: 19
Birth date: July 17, 1989
Gender: Male
Father’s Name: Raymond Menchavez
Occupation: Businessman
Mother’s Name: Linda Menchavez
Occupation: Businesswoman

Educational
Background College

University Of San Carlos

 59

P. Del Rosario Street,

Cebu City, 6000 Philippines
Present

High School

Bantayan Southern Institute

Bantayan, Cebu
2002-2006

Elementary

Bantayan Central School

Bantayan, Cebu
1996-2002

Anna Lou M. Mendez

Personal Data
Address: Lower Sampaguita Banilad,
Mandaue, City
Age: 19
Birth date: October 22, 1989
Gender: Female
Father’s Name: Eduardo C. Mendez
Occupation: Self-employed
Mother’s Name: Tita M. Mendez
Occupation: Housewife

Educational
Background College
 60

University Of San Carlos

P. Del Rosario Street,
Cebu City, 6000 Philippines
Present

High School

Colegio De La Immaculada Concepcion

Gorordo Ave. Cebu City
2002-2006

Elementary

ST. Joseph’s Academy

Mandaue, City
1996-2002

Melson G. Navarro

Personal Data
Address: Mother Ignacia Village
Pulpogan, Consolacion, Cebu
Age: 18
Birth date: September 30, 1990
Gender: Male
Father’s Name: Gamallier O. Navarro
Occupation: Policeman
Mother’s Name: Sofronia G. Navarro
Occupation: Housewife / Businesswoman

Educational
Background College

University Of San Carlos

 61

P. Del Rosario Street,

Cebu City, 6000 Philippines
Present

High School

Consolacion National High School

Pob. Occidental, Consolacion Cebu
2002-2006

Elementary

Bagong Lipunan Elementary School

Mother Ignacia Village Pulpogan, Consolacion, Cebu
1996-2002