Republic of the Philippines Polytechnic University of the Philippines Sta.

Mesa, Manila COLLEGE OF BUSINESS Department of Management and Entrepreneurship

Feasibility Studies (MANA 3093)

In Partial Fulfillment of the Requirements for the Degree of Bachelor of Science in Business Administration Major in Human Resources Development Management

Submitted to: Prof. Francisco C. Cular

Submitted by: Mark Keivin V. Alsa Maria Angela DR. Andutan Francis Roy Cadag Antonette C. Desear Jacqueline B. Gonzales Benjamin C. Hilario Jo Anne S. Juanillo Krystel Yvette O. Lubi Lawren N. Matias Paul John G. Raci Sherwin Lloyd R. Viceral

October, 2012

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Republic of the Philippines Polytechnic University of the Philippines Sta.Mesa, Manila COLLEGE OF BUSINESS Department of Management and Entrepreneurship

ENDORSEMENT SHEET This feasibility study of Mr. Mark Keivin V. Alsa, Ms. Maria Angela DR. Andutan, Mr. Francis Roy Cadag, Ms. Antonette C. Desear, Ms. Jacqueline B. Gonzales, Mr. Benjamin C. Hilario, Ms. Jo Anne S. Juanillo, Ms. Krystel Yvette O. Lub, Mr. Lawren N. Matias, Mr. Paul John G. Raci and Mr. Sherwin Lloyd R. Viceral entitled, FILIPIZZA, A Feasibility Study on Pinoy-Flavored Pizza Business submitted in partial fulfillment of the requirements in Bachelor of Science in Business Administration Major in Human Resource Development Management is hereby endorsed for oral defense.

PROF. FRANCISCO CULAR

Chairperson and Subject Adviser

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Republic of the Philippines Polytechnic University of the Philippines Sta.Mesa, Manila COLLEGE OF BUSINESS Department of Management and Entrepreneurship

APPROVAL SHEET Accepted and endorsed after having passed the oral defense satisfactorily as indicated by the corresponding rating form by the undersigned.
PANEL OF EXAMINERS

____________________
Panelist

____________________
Panelist

____________________
Panelist

Approved and accepted in the partial fulfillment of the requirements needed for the Degree of Bachelor of Science in Business Administration Major in Human Resource Development Management, October 2012.

DR. LEOPOLDO FT. BRAGAS

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Dean, College of Business Acknowledgements

First of all, we would like to thank God for giving us the wisdom, knowledge and understanding we needed in making this study. We would also like to thank Him for the strength, guidance and also the strategy He has given to us to successfully complete this study. We also would like to thank Professor Francisco Cular for the support and favor he has given us. For all the time he has given to us to finish and complete our study, we thank you Sir Cular. We also thank each of our family for supporting us financially and morally, for giving us what we need in completing this study. We also thank our classmates who helped us in some of our shortcomings and also for their support. We would also like to thank the citizens of San Jose Del Monte, Bulacan for cooperating in the survey sessions we conducted in their place. Thanks also to the Local Government of Barangay Kaypian for the favor they have given to us when we needed some legal papers for this study to push through and for their help and support in this study.

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Table of Contents

COVER PAGEi ENDORSEMENT SHEETii APPROVAL SHEET.iii ACKNOWLEDGEMENTS...iv TABLE OF CONTENTS...v LIST OF TABLESvii LIST OF EXHIBITS...x LIST OF FIGURES.xii INTRODUCTION..xviii FILIPIZZA LOGO...xix

I. PROJECT SUMMARY
A. Name of the Business..2 B. Business Logo...3 C. Location..5

D. Description of the Project

1. Company Background.11 2. 6ndustry Profile a. Nature of Industry (Foreign and Local) ...12 b. History of Industry14 3. Products and Services.17 4. Vision and Mission...18

5. Project Objectives
a. b.

General Objective19 Specific Objectives..20

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E. Executive Summary
1. Marketing Study ...22 2. Technical Study....23 3. Management and Legal Study24 4. Financial Study.....26 5. Socio-economic Study.26

II. MARKETING STUDY A. Market Study Objectives

1. General Objectives...29 2. Specific Objectives..29

B. Market Study Methodology

1. Scope and Limitations.30 2. Sampling Design..30 3. Sample Size Determination31 4. Questionnaire Formulation..31 5. Retrieval of Questionnaires.32 6. Survey Analysis Design...32 7. Tally of Questionnaires....33 8. Summary of Market Survey Analysis Results..47

C. Market Research
1. Description of the Target Market...48 2. Determining the Target Population Size a. b.

Total Population of the Target Location...49 Age Survey Analysis..50

3. Demand Analysis.52 4. Supply Analysis56

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5. Demand-Supply Gap Analysis58 6. Status of Competition.61

7. Market Share Analysis

a. Historical Market Share of Primary Competitors

(Year 2012)...................................................................................65
b. Historical Market Share of Both Primary and Secondary

Competitors (Year 2012)..66

c. Projected Market Share of Filipizza (Year 2013)..68 d. Projected Market Share of Filipizza for the Next Five Years..69 8. SWOT Analysis....71 9. Industry Analysis..72 10. Marketing Mix Strategy..73 11. Take-out Service.81 12. Opening Day Blitz...81 13. Channel of Distribution...82

III. TECHNICAL STUDY A. Production and Operation Analysis

1. Product Description..84 2. Uses of the Product..87 3. Product Preparation Guide.87 4. Production Process105 5. Suppliers..108 6. Product Capacity109 7. Operational Process..110 8. Waste Disposal...111

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B. Production Cost
1. Cost of Raw Materials by Product...113 2. Equipments, Machineries, Supplies and Tools.124 3. Depreciation Costs.133 4. Utility Requirements...135 5. Building Requirements..139 C. Pricing Computations..140

D. Store Layout
1. Store Exterior Design.150 2. Store Floor Plan..151 3. Store Floor Plan Details152 4. Productivity Area Floor Plan.153 5. Store Interior Design..154 E. Project Scheduling...153

F. Completion of the Study..154

IV. MANAGEMENT AND LEGAL STUDY A. Management and Organization

1. Type of Ownership.158 2. Organizational Chart..160 3. Officers and Key Personnel.....161 4. Employment Process....164 5. Classification of Employees.166 6. Code of Ethics....169 7. Company Rules and Regulations173 8. Store Uniform..184 9. Salaries, Wages and Other Benefits.. ..185

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10. Work Scheduling...186

B. Legal and Taxation Aspects..187

V. FINANCIAL STUDY
A. Capitalization...189 B. Source of Financing190 C. Major Assumptions........191

D. Financial Statements for the Projected Operations

1. Balance Sheet.192 2. Income Statement..193 3. Statement of Cash Flows..194 4. Statement of Capital Distribution.195

E. Supporting Schedules
1. Sales.196 2. Production...197

3. Purchases...... 198
4. Labor Costs.....199 5. Operating Costs..200

F. Financial Evaluation Measures

1. Capital Budgeting.. 201 2. Financial Ratios.....202 3. Rate of Returns..203 4. Turnovers....204

VI. SOCIO-ECONOMIC STUDY

A. Beneficiaries of the Study..207 B. Socio-Economic Contributions of the Study

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1. Contributions to the Economy..208 2. Contributions to the Workplace and Marketplace.210 3. Contributions to the Philippine Tourism..211 4. Contributions to the Government.211 5. Contributions to the Society / Community..212 6. Contributions to the Environment....213 C. Corporate Social Responsibility Commitments..214

VII. FEASIBILITY FINDINGS AND RECOMMENDATIONS.215 VIII. APPENDICES.. xxx IX. CURRICULUM VITAE xxx

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List of Tables

TABLE NO. 1 2 3 4 5 6 7 8 9 10 11 12 13

TITLE List of Nearby Schools and Population Details Customers Profile Respondents Ages Percentage Eating and Not Eating Pizza (Question #1 Statistics) Frequency of Eating Pizza (Question #2 Statistics) Percentage who Have and Havent Tried Eating Filipino Pizza (Question #3 Statistics) Preference Among Existing Filipino Pizza Flavors (Question #4 Statistics) Most Considered Factor in Choosing Pizza to Eat (Question #5 Statistics) Willingness to Try New Filipino Pizza Flavors (Question #6 Statistics) Preference for Pizza Toppings (Question #7 Statistics) Budget for a Slice of Pizza (Question #8 Statistics) Percentage who Have and Haven't Tried Malunggay Pandesal (Question #9 Statistics) Reasons for Eating Malunggay Pandesal (Question #10 Statistics)

PAGE NO. 9 33 34 35 36 37 38 40 41 42 44 45 46

14

Total Population of Barangay Kaypian from 20072012

49

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15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37

Population Age Segmentation Total Demand Growth Pattern Historical Demand Projected Demand Historical Supply Projected Supply Historical Demand-Supply Gap Analysis Projected Demand-Supply Gap Analysis Competition Analysis Competitors Profile Historical Market Share Analysis of Primary Competitors (Year 2012) Historical Market Share Analysis of Both Primary and Secondary Competitors Projected Market Share of Filipizza (Year 2013) Projected Market Share of Filipizza for the Next Five (5) Consecutive Years Filipizzas SWOT Analysis Supplies, Suppliers and their Locations Product Daily, Weekly and Monthly Capacity Malunggay Pizza Dough Ingredients Bicol Express Ingredients Bopis Ingredients Beef Caldereta Ingredients Adobong Pusit Ingredients Sisig Ingredients

51 52 54 55 56 57 58 59 61 63 65 66 68 69 71 108 109 113 114 115 116 118 119

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38 39 40 41 42 43 44 45 46 47 48 49 50 50 51 52 53 54 55

Chili Ham Cheese Sticks Ingredients Chicken Strips Ingredients Nachos with Salsa and Cheese Dip Pizza-Making Tools and Utensils Kitchen Tools and Utensils Sanitary Supplies Machinery Requirements Office Equipment Office Supplies Furniture and Fixtures Depreciation Costs Utility Requirements Building Requirements Project Scheduling Completion of the Study Officers and Key Personnel Job Descriptions and Specifications Kinds of Offenses Work Scheduling Legal Requirements List of Exhibits

120 121 122 124 126 128 129 131 131 131 133 138 139 155 156 163 172 186 187

FIGURE NO.

TITLE

PAGE NO.

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Customers Profile Respondents Ages Percentage Eating and Not Eating Pizza (Question #1 Exhibit) Frequency of Eating Pizza (Question #2 Exhibit) Percentage who Have and Havent Tried Eating a Filipino Pizza (Question #3 Exhibit) Preference Among Existing Filipino Pizza Flavors (Question #4 Exhibit) Most Considered Factor in Choosing Pizza to Eat (Question #5 Exhibit) Willingness to Try New Filipino Pizza Flavors (Question #6 Exhibit) Preference for Pizza Toppings (Question #7 Exhibit) Budget for a Slice of Pizza (Question #8 Exhibit) Percentage who Have and Haven't Tried Malunggay Pandesal (Question #9 Exhibit) Reasons for Eating Malunggay Pandesal (Question #10 Exhibit) Population Age Segmentation Projected Demand (From 2013 2017) Projected Supply (From 2013 - 2017) Historical Demand-Supply Gap Analysis Projected Demand-Supply Gap Analysis Historical Market Share of Primary Competitors

33 34 35 36 37 39 40 41 43 44 45 46 51 55 57 58 60 65

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19 20 21 22 23 24 25 26 27 28 29

Historical Market Share of Both Primary and Secondary Competitors (Year 2012 Projected Market Share of Filipizza (By the year 2013) Projected Market Share of Filipizza (2013-2017) Industry Analysis Channel of Distribution Production Process of Filipizza Production Process of Malunggay Pizza Dough Production Process of Filipizza Toppings Operational Process Organizational Chart Sources of Financing

67 68 70 72 82 105 106 107 110 160 190

List of Figures

FIGURE NO. 1

TITLE The Filipizza Company Logo

PAGE NO. 4

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2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Mapping Location of the Business Starmall, San Jose Del Monte Filipizza Menu List Company Poster Company Nameplate Company Flyer (Front and Back) Tarpaulin Filipizza Products Malunggay Pizza Dough Bicol Express Bopis Beef Caldereta Adobong Pusit Sisig Pinoy Sisig Pizza Pinoy Bicol Express Pizza Pinoy Bopis Pizza Pinoy Beef Caldereta Pizza Pinoy Adobong Pusit Pizza Chili Ham Cheese Sticks Chicken Strips Nachos with Salsa and Cheese Dip

6 7 10 74 77 78 79 80 86 87 89 90 92 93 94 95 96 97 98 99 100 101 103

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25 26 27 28 29 30 31 32 33

Distilled Water Coca-Cola Soda Iced Tea The Filipizza Shop (Side View) Store Floor Plan Store Floor Plan Details Productivity Area Floor Plan Store Interior Design Store Uniforms (For Male and Female)

104 104 104 150 151 152 153 154 184

INTRODUCTION

There's no better feeling in the world than a warm pizza box on your lap.
- Anonymous

I had three jobs my junior and senior year of high school. I worked for the gas station and worked for a pizza place. - Anonymous And I don't cook, either. Not as long as they still deliver pizza.

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 Tiger Woods As an actress and comedienne, I'm a huge fan of the theatre and the Tricycle in Kilburn is my favorite in London. I dragged my kids to a performance of 'Twelfth Night' there, where they handed out pizza. Who knew that all it takes to get children interested in Shakespeare is a snack? Arabella Weir A fan sent me a letter and a $10 bill. It's a short letter - all she said was, "Hey, since it's harder for you to go out these days without getting photographed, here $10 for a pizza." I was like, "Aww, she sent me money for a pizza so I could eat at home!" Zac Efron

These are only some of the proofs available on the internet that will testify for the convenience, taste and satisfaction pizza brings. Ordinary and famous people like celebrities and athletes were also mesmerized by the hunting aroma delivered by pizzas and for sure bringing it on a reachable phase this will go wider until everyone is captivated.

This popular dish started at Italy a country where breads are considered as primary meal, basically known as food for the poor. As time goes by, it eventually been developed and was transformed into a dish demanded by all walks of life. Nowadays, the pizza products that we buy are still conceptualized by other races that own pizza manufacturing businesses and only branched out to reach the Filipino market. Filipizza is the study which aims to bring the concept of pizza at home. Together with our very delicacies from different parts of the Philippines, the proponents thought of studying the idea having known that there is a very great demand for pizza itself and an overwhelming crave for our

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delicacies not only from us Filipinos but of different races too. Great potentials were seen and more waits to unveil.

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A FEASIBILITY STUDY ON PINOY-FLAVORED PIZZA BUSINESS

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