MAPUA INSTITUTE OF TECHNOLOGY

SCHOOL OF LANGUAGES, HUMANITIES & SOCIAL SCIENCES

FEASIBILITY STUDY

3rdQUARTER SY 2017 - 2018

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE COURSE SS12
GENERAL ECONOMICS & TAXATION, SCHOOL OF LANGUAGES, HUMANITIES &
SOCIAL SCIENCES

PREPARED BY:

FELICIA, BERLIN
FONTANILIA, CARLA MARIELLI
MOLINA, JERMAINE
PIMENTEL, SAHARA
ITABLE III, MARCIALITO
 I. Introduction
Name of the firm
Leche Flan Republic

Nature of the business/why you choose this

Our proposed business is a Home-based Business. We choose this kind of
business because Leche Flan has been one of Filipino’s favorite dessert, whether it’s
summer or rainy season or any occasions, Filipinos are always looking or making this
delicious dessert.

Location of the business

The address of the business is on Blk 3 Lot 19 Villa Cuana III Ph1 San Juan
Cainta Rizal

Competition, are there similar businesses within the area?

None.

Marketing strategy, what will you do so that people will choose your product over
the other?

MISSION
To provide sweet and delicious treat for every Filipino Family but in very
affordable price.

VISION
To become the number one regarding desserts and establish the name in the city.

SWOT ANALYSIS

STRENGTHS WEAKNESSES
The location has a very active neighbourhood. Still a new business.

Very competitive price. Time to gain experience and build reputation.

Located near market area, subdivisions and Product have expiration date.
newly open restaurants.

Good Packaging.

OPPORTUNITIES THREATS

To establish a strong customer base in the area. Competitors in the market such as Goldilocks.

To be partners with the restaurants, schools Customers preferring the high end brands.
and other establishments for their desserts.

Sponsoring neighbour parties to market the The customers don’t want to try new if they
product. already established a good relationship with
their suppliers.

The location is developing into a food center

for the South part of Cainta

MARKET SEGMENTATION

The market can be categorized into four main market segments for Sweet Treats. These are:

 Mothers (women in the family)

 Newly open restaurants

 Houses within the subdivision and the other (five) 5 subdivisions in the area

 People with sweet tooth

DEMAND FOR LECHE FLAN

There is always a constant demand for desserts in Filipino lives. They are in every
celebration, special meals and just normal sweet tooth cravings. The demand for food especially
on desserts with a good packaging is now on high demand because of Social Medias. There is
always a high demand during traditional celebrations such as Christmas Season, New Year,
Easter and Birthdays.
CUSTOMER PROFILING

 Women

 Working or House wives

 21 – 60 years of age

 Married, engaged or in long-term relationship

COMPETETIVE ADVANTAGES

 Competitive pricing – matching or providing lower prices than competitors

 Quick delivery of the products to the customer

 Better quality customer service

 In a better location, easy to access

 Giving customers what they want, with product customisation

MARKETING OBJECTIVES

 Increase its sales over 12 months by 20%

 To build a stronger brand relationship with our customers

 To have well established brand image

 To have a regular establishment to offer products

 Building relationships with regular customers such as business customers is

important to ensure a continuous flow of sales and profits.

PRODUCTS

 Leche Flan

PLACE
 Operating from home
 No need to pay rent

PROMOTION
 Outdoor signage
 Flyers and business card distributed in the area
 Free taste
 Local publicity
  Social networking sites

II. PRODUCTION PROCESS

RAW MATERIALS (per week):

RAW MATERIALS NEEDED QTY COST/ DOZEN TOTAL COST
Egg 80 PHP 6.00 PHP 480.00
Condense Milk 3 PHP 39.00 PHP 117.00
Evaporated Milk 3 PHP 24.50 PHP 73.50
Granulated Sugar 1 PHP 49.00 PHP 49.00
Vanila extract 1 PHP 39.50 PHP 39.50
Aluminum Foil 5 PHP 23.00 PHP 115.00
Plastic Container 20 PHP 62.00 PHP 124.00
Llanera 50 PHP 12.00 PHP 600.00
TOTAL: PHP
1,597.50

MACHINERIES:

MACHINERIES QTY COST TOTAL COST

NEEDED
Folding table 1 PHP 1,499.00 PHP 1,499.00
Hand Mixer 1 PHP 998.00 PHP 998.00
Stainless Steamer 1 PHP 1,400.00 PHP 1,400.00
Mixing Bowls 3 PHP 941.00/ Set PHP 941.00
Measuring Set Tools 1 PHP 358.00 PHP 358.00
Refrigerator 1 PHP 3,799.00 PHP 3,799.00
TOTAL COST: PHP
8,054.00
 PRODUCTION PROCESS:

Buying
Ingredients
from Super
Put in the Market Seperate the
plastic yolk from the
containers egg white

Place the Yolk

Cool down and
in a big bowl
refrigerate
and beat them

Steam the Add

mold for 30 - condence
35 mins. milk

Cover the top Pour Fresh

using Aluminum Milk and
Foil Vanilla

Put the llanera

Pour the
with sugar on
mixture
the stove
Spread
caramel
 UTILITIES
UTILITIES COST PER MONTH COST PER WEEK
Electricity PHP 711.49 PHP 177.87
Water PHP 200.00 PHP 50.00
Pone bill & Internet PHP 1,299.00 PHP 327.75
Gasoline (diesel) PHP 2,000.00 PHP 500.00
LPG PHP 600.00 PHP 85.70
TOTAL: PHP 4,810.49 / month PHP 1,202.62 / week

PERSONEL PLAN
PERSONEL DAILY MONTHLY WEEKLY
Owner / manager PHP 500.00 PHP 15,000.00 PHP 3,750.00
Assistant/ Delivery PHP 350.00 PHP 10,500.00 PHP 2,625.00
Guy
TOTAL PER TOTAL PER
MONTH: YEAR:
PHP 25,500.00 PHP 6,375.00

PROMOTIONAL ACTIVITIES YEARLY COSTS

ACTIVITY QUANTITY / TIME TOTAL COST TOTAL COST

FRAME
(PER WEEK)

Flyers 100 pieces PHP 1,000.00 PHP 250.00

Outdoor signage 1 piece PHP 450.00 PHP 112.50

Free Taste 6 Plastic container PHP250.00 PHP 375.00

TOTAL COST: PHP PHP 425.00 PER

1,700.00 WEEK
 III. Financial aspect

TOTAL FIXED COST

FIXED COST MONTHLY WEEKLY

UTILITIES PHP 4,810.49 PHP 1,202.62
MACHINERIES PHP 335.59 PHP 83.90
(DEPRECIATION)
PROMOTIONAL PHP 1,700 PHP 425.00
TOTAL FIXED COST: PHP 6,846.08 PHP 1,711.52

TOTAL VARIABLE COST

VARIABLE COST MONTHLY WEEKLY

RAW MATERIALS PHP 6,390.00 PHP 1,597.50
EMPLOYEE SALARY PHP 25,500.00 PHP 6,375.00
TOTAL VARIABLE COST: PHP 31,890.00 PHP 7,972.50

TOTAL COST

COST MONTHLY WEEKLY

FIXED COST PHP 6,846.08 PHP 1,711.52
VARIABLE COST PHP 31,890.00 PHP 7,972.50
TOTAL COST: PHP 38,736.08 PHP 9,684.02

UNIT COST (WEEKLY)

TOTAL FIXED TOTAL VARIABLE UNITS PRODUCED UNIT COST

COST COST (WEEKLY) (TFC + TVC) / UP
PHP 1,711.52 PHP 7,972.50 50 PHP 193.69

CONTRIBUTION MARGIN SALE

UNITS TOTAL UNIT SELLING UNIT CONTRIBUTI

PRODUC VARIAB VARIAB PRICE PER CONTRIBUTI ON MARGIN
ED LE COST LE COST ARRANGEME ON MARGIN RATIO
(WEEKLY (WEEKL (TVC / NT (SP – UVC) (UCM / SP)
) Y) UP)
50 PHP PHP PHP 250 PHP 90.55 0.3622
7,972.50 159.45
REVENUE

SELLING PRICE UNITS SOLD DAILY MONTHLY ANNUAL

PER (WEEKLY) REVENUE REVENUE REVENUE
ARRANGEMENT (SP X US/DAY) (DR X 30 (MR X 12
DAYS) MOS.)
PHP 250.00 50 PHP 1,785.71 PHP 53,571.43 PHP
642,857.16

PROFIT

DAILY DAILY MONTHLY MONTHLY ANNUAL ANNUAL

REVENUE PROFIT REVENUE PROFIT REVENUE PROFIT
(DR - TC) (MR - TC) (AR - TC)
PHP PHP 509.50 PHP 53,571.43 PHP PHP 642,857.16 PHP
1,785.71 14,835.35 178,024.20

BREAK-EVEN SALE

TOTAL CONTRIBUT BREAK BREAK PROFIT PROFIT

FIXED ION EVEN EVEN ADJUSTED ADJUSTED
COST MARGIN SALES VOLUM BREAK- BREAK-
(WEEKLY) RATIO (TFC / E EVEN SALE EVEN
CMR) (TFC / (TFC + VOLUME
UCM) minimum (TFC +
weekly profit) / minimum
CMR weekly profit) /
UCM
PHP 1,711.52 0.3622 PHP 18 PHP 25,432.14 PHP 1,794.35
4,725.35

IV. CONCLUSION

NUMBER OF DAYS / MONTHS TO PAY FIXED & VARIABLE COST

TOTAL FIXED COSTS (WEEKLY) = PHP 1,711.52
TOTAL VARIABLE COSTS (WEEKLY) = PHP 7,972.50
TOTAL COST (WEEKLY) = PHP 9,684.02
DAILY REVENUE= PHP 1,785.71
NO. OF DAYS TO PAY FIXED COSTS= 1 DAY
NO. OF DAYS TO PAY VARIABLE COSTS= 5 DAYS
NO. OF DAYS TO PAY TOTAL COSTS= 6 DAYS
RETURN OF INVESTMENT
ROI= (PROFIT/ TOTAL COSTS) X 100
= (PHP 14,835.35/ PHP 38,736.08) X 100
ROI= 38.29%
PAYBACK PERIOD= TOTAL COSTS/ TOTAL REVENUE)
= PHP 38,736.08/ PHP 53,571.43
PAYBACK PERIOD= 0.72 OF A MONTH OR 22 DAYS.

CONCLUSION
Based on the data presented, Leche Flan Republic, having a monthly investment of PHP
38,736.08, will generate a total revenue of PHP 53,571.43 and a monthly profit of PHP
14,835.35. The return of the investment is at 38.29% and the payback period shall be within 22
days. Hence, the proposed business is feasible.