PEANUT BUTTER

EDUC 42 EDA

Submitted by :
Bebeche O. Dangcal

Submitted to:
Dr. Charity Rose Absin
Executive Summary

My product is peanut butter with special ingredients. It is placed in a plastic

container covered with waxy paper and sealed it properly. This product is
made cleanly and I can guarantee the safety of this food. To make this
product is not time consuming and the ingredients are easy to locate.

This business is located at SS Building lobby inside Xavier University-

Ateneo de Cagayan because it is a convenient place and very accessible
for the target market. This peanut butter is made up of peanuts, sugar and
dairy cream. The price for each product is affordable and it is not over
pricing.

Business Description

Peanut butter produces a very good taste especially when there are special
occasions. It gives satisfaction to the costumers during snack time for
breads and sandwiches. I operate this business by myself for I believe that
Ican manage this on my own. This product is something good for individual.
This business is not new anymore for everybody but with my own effort of
this product, the costumers will see the difference of my product in terms of
its ingredients, how it was packaged and operated for the benefits of the
costumers. Unlike others, this product is not of high price but it is still
profitable.In every business there is always a goal, a goal to achieve. This
business must achieve good sales in order to gain profits and to get the
return of investment. Of course, I also need to consider the interest of my
costumers to increase production of goods and to be evaluated such as
good business. I am also opened for other possibilities for improvements
and for good suggestions from my costumers.
PRODUCT

This product is a food paste and spread made primarily from ground dry
roasted peanuts. The ingredients are peanuts, dairy cream and sugar. The
amount of ingredients should exactly be proportional to have a better result.
The process is a bit crucial but once its done it is worthy enough. I choose
to place it in a plastic container so that customers will be attracted. Then I
also covered it with a waxy paper in order to avoid the spoilage and to keep
the product neat and clean. I also choose to seal after all so that the
costumers will trust the product that its good and it is made carefully. Also,
I put red ribbon outside the container to be pleasant to look at and it can be
a gift for special someone.

Market Analysis

To put a business, one of the things that need to consider is the

competitors. I am able to find out that Xu canteen is also selling a peanut
butter but not all the time. Aside from that, they sold it with a high price and
in terms of the container being used there is a big difference. I considered
my competitor but it was not hard for me to sell the product because I had
many costumers beforehand. Before I made the first batch of my product I
was able to make a canvass from my friends around Xu community. I am
also visited different offices and I was lucky that they asked for orders most
of them. Outside XU, I had also some costumers and usually they were old
costumers from my any other product. Also, I always send group message
through phone to my costumers both old and new. I was always inviting
them to see my product and buy it. My product is presented creatively and
it is more affordable compared to other competitors.

MARKETING

In terms of promoting my product to my target costumers, I visited them

face to face and do the sales talk. First, I made one sample and showed it
to them. First question they asked was how much the cost of the product.
At first I gave one peanut butter for 60 pesos but I found out that the price
was more than enoughalthough Igained much profit if Im going to produce
a lot then sold it. Later on, I decided to make it 50 pesos only because I can
still get enough profit and I realized that the more costumersare attracted to
the product. So, the selling is continuous. Another strategy is I showed
pictures of my product in my Facebook and also those who buy it. Every
costumer was taken photos for documentation so that other friends in the
social media will convince to buy my product. Luckily, they asked for the
price and they asked for product orders. Many costumers asked it but then
I cannot make it all the time because of the limited time I have.

Each peanut butter costs 50 pesos and was sold anywhere inside and
outside Xu main campus.

OPERATIONAL PLAN

Production Method and Control

Since peanut butter is a small-scale business, I used batch production as a

method. This means that I produced only the amount of product depending
on the orders for the day and also the expectation of possible buyers. So,
every batch I produced 10 pcs and sold it 50 pesos each. I also minimized
the production of my product per batch because I want to make sure that
the product is always fresh for my costumers although it can be stored for
how many days. I also measured the amount of result through the quantity
of the materials and the ingredients.

LOCATION

The production takes place at NHA Kauswagan because it is where I am

currently staying. Most of the time, the display of the product can be found
in XU SS Lobby.
Risk Management

There were no harmed during the production but in making this product you
have to be careful to avoid hair falls so that no complaints from the
costumers. Also, the measurement should be exact and it should be
proportional to the amount of other ingredients so that the taste will not be
changed and its uniqueness will be maintained.

Personnel

I am just the one involved in the production. The cost and the profit also for
the product will go to my share.

INVENTORY

PEANUT BUTTER DAY 1 DAY 2 DAY 3

PRODUCTION 10 pcs 10 pcs 15

FINANCIAL PLAN

TOTAL SALES PER PRODUCTION

PRICE UNIT TOTAL SALE

P50 10 pcs P500

 Income Statement (Day 1 and 2)

Revenue P500.00

Cost of Goods Sold P320.50

Gross profit P179.50

Labor fee 20 %

Total Operating Expense P35.90

NET INCOME P143.60

 DAY 3

Revenue P750.00

Cost of Goods sold P408.00

Gross profit P342.00

Labor fee 20 %

Total operating Expense P68.40

Net income P273.60

 Cash Flow Statement Budget

Capital P1,049.00

INGREDIENTS

Peanuts P185.00 per galloon

Sugar P27.00 (1/2 kilo)

Dairy cream P48.00 each

During the Production
After the Production
During the actual display of Product