CHAPTER I

INTRODUCTION

Philippines is known for its rich culture and traditions. Interactions with some countries

like Spain and America all through history have also helped to shape our culture because of their

influences. But nowadays, Filipinos are slowly forgetting our own culture. Also, modern times

are threatening to eliminate the things that have made us uniquely, as a Filipino.

Company Background

Baliktanawan is a Filipino inspired brasserie that will be designed as a modern Filipino

Nipa Hut. It aims to increase awareness about our Filipino Culture.

Baliktanawan will be located in Alaminos City, Pangasinan specifically at San Jose

Drive, Barangay Poblacion. The location is mostly composed of students of The Great Plebeian

College, Golden West College, Alaminos City Central School, Mary the Queen Educational

Foundation, Collegio De San Jose and Philippine Accountancy and Science School. The business

will also cater tourists who are going to the famous tourist spot in Alaminos City - Hundred

Islands National Park. Since the company is located at the town proper, it will be easier for us to

attract customers who might patronize our business.

The business aims to promote the country’s rich culture. We also wanted to increase the

awareness of the Filipino youth and inspire them to preserve what our country has. Aside from

these, we will offer variety of food that will satisfy our customer’s unlimited cravings.

Furthermore, we will make sure that customer who enters the shop will feel relaxed and well

accommodating ambiance.

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 We decided not to employ but rather we shall be the one who will act as a staff. We will

make sure that every customer will feel delighted by greeting every customer with an energetic

and convincing voice. The operating hours will start at 9:00 AM and it will end at 9:00 PM.

Value Proposition

The only reason why Baliktanawan’s customers should buy Baliktanawan’s brand is “a

more personalized innovative product that is affordable for everyone”. This value proposition

indicates that Baliktanawan provides more distinct mouth-watering desserts to fill their cravings.

In addition to that, it also indicates the Filipino Culture inspired shop of Baliktanawan to provide

a clear, distinctive, and desirable place relative to competing products in the minds of target

consumers, Baliktanawan is all about preserving our Filipino Culture.

Competitive Advantages

Baliktanawan will be the first business to be established as a Filipino Culture Inspired

Brasserie. Also, it is the first business to introduce innovative products such as Shaved Ice, Hot

Milktea, and Ice Cream. Furthermore, Baliktawan is the only brasserie that offers a combination

of milk tea and rice meals in Alaminos City.

1.1 Statement of the Problem

This research study is intended to evaluate the profitability of Baliktanawan. Specifically, it

aims to evaluate and analyze the following area:

1.) Is there an excess demand towards Baliktanawan’s products regardless of the

implementation of TRAIN Law?

2.) Will Baliktanawan gain an income?

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 3.) Will Baliktanawan in Alaminos be feasible?

Hypotheses:

1.) HO: No, there is no excess demand towards Baliktanawan’s products regardless of

TRAIN Law implementation.

Ha: Yes, there is an excess demand towards Baliktanawan’s products regardless

of TRAIN Law implementation.

2.) HO: No, Baliktanawan will have net loss.

Ha: Yes, Baliktanawan will have net income.

3.) HO: No, Baliktanawan is not feasible in Alaminos.

Ha: Yes, Baliktanawan is feasible in Alaminos.

1.2 Scope and Delimitations

The main focus of this study is to know whether Alaminos City, Pangasinan is a good

location for Baliktanawan. In doing so, we will conduct a survey and an interview for the

students, both male and female, and age ranges from 12 to 20 years old distinguishing their

insights and concern to the business that will be established.

Also, this study focuses on gathering data of students of The Great Plebeian College and

Golden West Colleges. The students can either be male or female.

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 1.3 Theoretical Framework

Capital Distribution

Baliktanawan will be established with a capital of two million eight hundred thousand

pesos (₱ 2,800,000.00). It will be allocated in the shown table.

Supplier Quan Unit Sub – Total Total

-tity Price

Cost of Permits and Registration of Business

SEC Registration Fee 5600 5600

FDA 2000 2000

BIR Registration 500 500

Mayor’s Permit - 1 200 200

Business Permit - 1 200 200

Barangay Clearance . 1 50 50

Health Certificate - 1 50 50

Company Name - - 40 40

Verification

Fire and Safety - 1 40.5 40.5

Sanitary Permit Fee - 1 10 10

Subtotal 8690.5

Raw Materials

20 kg. Milk Tea PHNI 27 3,000 81000

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Syrups

Cup Printing PHNI 9000 2.95 26550

Large(min. of 2000

pcs)

Cup Printing Medium PHNI 9000 2.25 20250

(min. of 2000 pcs)

Bottles of Honey PHNI 40 300 12000

Rolls of Milk tea Seal PHNI 6 1,920 11520

(3 900 pcs. each roll)

(12% tax excluded)

Hot Paper Cup Small PHNI 2000 3.65 7300

( min. of 2000 pcs.)

Wafer Cone (12 pcs) Alaminos Public Market 60 120 7200

Black tea PHNI 10 280 2800

Yakult CSI 300 7.6 2280

Cotton Candy Premix CSI 10 200 2000

Powder (1 kg)

Toppings Alaminos Public Market 30 50 1500

25 kg. Rice Alaminos Public Market - 45 1125

Drinking Straws CSI 10 70 700

(100pcs/ pack)

Gasoline PR Gas 1 580 580

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Condiments Alaminos Public Market - 500 500

2 kg. Pork Alaminos Public Market - 180 360

2 kg. Chicken Alaminos Public Market - 120 240

Subtotal 177905

Property and

Equipment

Land (65 sq. meter) - - - 2000000

Ice Cream Machine Divisoria 1 60000 60000

Auto cup sealer PHNI 1 10,000 10000

Freezer Magic Appliances 1 12450 12450

Gas stove La Germania 1 2,199 2199

Cotton Candy Divisoria 1 820 820

Machine

Ice Crasher Machine Divisoria 1 800 800

Subtotal 2086269

Improvements

Varnish (1 Liter) Alaminos Public Market 40 100 4000

Subtotal 4000

Utensils

Spoon and Fork Alaminos Public Market 60 24 1440

Big Thermos NOVO 2 295 590

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Mugs NOVO 10 50 500

Bowl Alaminos Public Market 20 24 480

Measuring Cups NOVO 2 200 400

Banga Pottery Shop 80 4 320

Platters NOVO 3 100 300

Mixing Spoons (24 NOVO 1 260 260

pcs)

Milk tea shakers NOVO 2 100 200

Wooden Laddle Alaminos Public Market 20 4 80

Subtotal 4570

Others

Establishment of the Drafts Man, overhead - 400000 400000

Business costs, labor costs and etc.

Comfort Room set( - 1 9,800 9800

tiles, toilet bowl, and

wash bowl)

CCTV Hikvision 4 2,000 8000

Generator Fujihama 1 5,888 5888

Water supply - - 5,000 5,000

Installation

Wi-Fi Installation PLDT - 4600 4600

Staff Uniform Divisoria 20 150 3000

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Fire Extinguisher - 1 2,800 2800

Cleaning Tools CSI 1 1,000 1000

Speaker Magic Appliances 1 900 900

Table Napkin Alaminos Public Market 2 50 100

Subtotal 441,088

Investment Cost 2,722,522.5

Contingency Fund 77,477.5

Total Investment 2,800,000

Cost

Individual Contribution

Partners Percentage Invested amount

Bautista, Mariel 10% 280000

Bolante, Jobiel 10% 280000

Garbo,Lara Allyssa 10% 280000

Orgando, Charles Dharylle 10% 280000

Poquiz, Jesmar 10% 280000

Posadas,Vincent Dave 10% 280000

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Ramirez, Erika May 10% 280000

Reyes, Marianne Angela 10% 280000

Tibayan, Maria Krisha 10% 280000

Viray, Aira 10% 280000

Total 100% 2800000

SWOT Analysis

This part of the analysis will provide the overall evaluation of Baliktanawan’s strengths,

weakness, opportunities, and threats through the use of SWOT analysis.

Strengths

 Accessible

If the business is not accessible, the customer will not be able to buy and

patronize our product. The Baliktanawan is located on the roadside where all of our target

market can easily have an access to it. It is visible not only to the students but also to the

tourist going to famous Hundred Island National Park.

 Innovative Product & Ideas

Comparing the products of Baliktanawan with other nearby competitors,

Baliktanawan is the only shop that offers Milk Tea, Shaved Ice, Ice Cream and Rice

Bowl that is new to the market. This will give an advantage for Baliktanawan as we

wanted to bring a new level of experience that offers a hot & cold treats for the customer.

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 Customer-Oriented Service

To build up a connection to the customers, the staffs must be approachable,

cheerful, and friendly. Having this connection can lead to loyalty, feedbacks, and

referrals. Baliktanawan’s staffs are surely approachable, cheerful, and friendly at the

same time they are culture oriented that may also influence the mood of the customers. In

addition to, the staffs of Baliktanawan will greet its customer every time they will enter

the establishment.

 Relaxing Ambiance & Unique Interior Design

There are many ways that Baliktanawan can make its customer feel relaxed. First,

the company structural design is modern nipa hut inspired brasserie which embraces our

Filipino Culture. The ambiance inside the shop is relaxing and comfortable.

Baliktanawan will be playing music and a song requests from the customers. Last way to

make the place relaxing is by adjusting the lighting of a place. Baliktanawan will use

moderate brightness within the place; not too dim and not too bright.

 Geographical Location

San Jose Drive Poblacion, Alaminos City, Pangasinan is surrounded by several

schools namely: The Great Plebeian College, Golden West College, Alaminos City

Central School, Mary the Queen Educational Foundation, Collegio De San Jose and

Philippine Accountancy and Science School. Once a customer is physically close to our

store, we have a far better chance of persuading them to purchase from us. Furthermore,

Alaminos City is one of the well-known tourist spots here in the Philippines. We can see

this as an opportunity to attract potential customers since our location can be used as a

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 marketing tool. Location-based marketing is one of the best ways to convert foot traffic

into new customers. People who may never have heard of Baliktanawan, or may never

have considered purchasing our product, can be persuaded to try our business for the first

time.

Weakness

 New to the industry

As the shop is new to the industry, it is not popular and it has a low market share

as of the moment. Customers most likely go to shops that are famous in this field. Thus,

Baliktanawan will most likely be unrecognized or considered weak within our target

market, generating sales is going to be tough.

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Opportunities

 Market Trends

Since our business will also offer limited edition products based on the new

market trends, this will give us an opportunity to be known in the public. It will give us a

competitive advantage among our competitors.

 Change in Season

Philippines has two seasons; the dry and wet season. During dry season,

Baliktanawan will help customers to quench their thirst and stay cool from the hot

temperature outside. We can expect a high income during the season. Here comes the

threat, the wet season. During the wet season, the temperature outside is not that hot

compare to dry season. We can expect a low income for this season. To address this

threat, Hot Milk Tea will serve as a solution for the Wet Season.

 Social Media as a Marketing Strategy

Social media is one of the most cost-efficient digital marketing tools used to promote a

business and increase its visibility. Implementing a social media strategy will greatly increase

our business recognition since it will be engaging with a broad audience of consumers. Given

that social media became part of people’s daily routine in life, it could help us introduce

and market the Baliktanawan into the public through posting advertisements in a form of

statements, pictures, posters and video clips.

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Threats

 Existing Competition

There are nearby competitors within the location namely: I heart Milktea, Apple

Joy, Gaudencios and Silver’s Cafe. These Cafes offer the same variety of products that

are almost the same with ours. They are few meters away from the location.

Baliktanawan must focus on maintaining the quality and the marketing plan for the target

market.

 Imitation

From various experience from other cafes into a single idea, the imitation of

Baliktanawan’s competitive advantage may occur. Baliktanawan’s products can be

imitated as well as the other products to be introduced soon by the competitors however,

the positive ambiance that Baliktanawan offers cannot be imitated nor copied.

Porters Five Forces Model

Bargaining Power of Supplier – Low

We choose the bargaining power of supplier as low for which Baliktanawan will have

suppliers coming from four suppliers.

First, Henry & Sons was born out of the combined expertise and history of Conlins

Coffee, Boyds Coffee, and RICMAS. It offers syrups named Serenity Flavors which consists of

the following flavors such as Caramel, Hazelnut, Mocha, Peppermint, Raspberry, Strawberry,

Vanilla, Peach, Orange, Melon, and Kiwi. For every 750 ml, it cost about ₱ 320.00.

Second, Popular Household Names is a supplier of tea products, sugar and concentrated

syrups and it is one of the leading providers of food and milk tea ingredients, materials and

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supplies- supplying only the best products to the most known food manufacturers. It is a known

supplier of tea brands and consumers in Thailand, Japan, Philippines, Canada, Taiwan and USA.

Also, it is authorized by the appropriate government agencies from the source to the destination

locations, highly reliable and globally acknowledge. These concentrated syrups consist of

following flavors: Blueberry, Grape, Grapefruit, Green Apple, Kiwi, Lemon, Lychee, Mango,

Orange, Passion fruit, Peach, Pineapple, Strawberry, and Wintermelon. Popular Household

Names also gives a discount of 3 % if order reaches at least ₱ 100 000 even after the additional

less 3% is deducted.

Third, Metro Manila Business Supplies offers the best quality of milk tea products.

Baliktanawan ensures not only to provide the wants of the customers but also to provide the best

quality of product to satisfy them.

Lastly, Pro Possmei, is one of the top distributor of milk tea ingredients and other

beverage related products worldwide.

Even with these four suppliers, the researchers will only focus on one supplier, Popular

Household Names. For which it differs from price compare to its competitor. And also, having

one supplier can maintain the quality of the product. The researchers will change supplier if

Popular Household Names tend to increase its prices to the point that it is already higher

compared to other suppliers. And also, the researchers consider it as low since all of the raw

materials needed excluding the syrups, cups, and teas are locally available.

Bargaining Power of Customer – Moderate

Customers can visit establishments that can substitute a milk tea shop causing the

bargaining power of customers to moderate. Establishments like 7-Eleven, canteens inside their

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schools, and also street vendor. It is also in moderate level because Baliktanawan’s products

have many available substitutes in the market like soft drinks, juices, and palamig.

Threats of New Entrants – High

Given the fact that the Baliktanawan is in the Food and Beverage Industry, the capital

needed to put up this kind of business in not that costly. Thus, rivalry can easily enter the market

and weaken the position of the business.

Threats of New Substitute – High

There are some of substitutes to our products such as soft drinks, juices, palamig,

pastries, and other desserts that Baliktanawan does not offer. Even though there are substitutes,

we will make sure that the products are beneficial to the health of the students and maintain the

low price of our product for our target market.

Competitive Rivalry – High

As Alaminos City, Pangasinan is a booming city, entrepreneurs tend to put up their

business here. There is a high level of competition among dessert shops. This includes other milk

tea shops, fast food chains, convenience stores, canteens, and street vendors. Baliktanawan is

different from its competitors from the features of the product that it will offer, and raw materials

that we will use.

Products

Baliktanawan will offer Milktea, Yakult Fruit Tea, Fruit Tea, Milktea, Ice Cream, Hot

Milktea, Shaved Ice, and Rice Meals. It will be sold at the following prices.

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 Milk Teas Small (360 ml) Medium (500 ml) Large (700ml)

Blueberry ₱45.00 ₱ 60.00 ₱ 75.00

Chocolate ₱45.00 ₱ 60.00 ₱ 75.00

Cookies and Cream ₱45.00 ₱ 60.00 ₱ 75.00

Green Apple ₱45.00 ₱ 60.00 ₱ 75.00

Kiwi ₱45.00 ₱ 60.00 ₱ 75.00

Lychee ₱45.00 ₱ 60.00 ₱ 75.00

Mango ₱45.00 ₱ 60.00 ₱ 75.00

Passion Fruit ₱45.00 ₱ 60.00 ₱ 75.00

Strawberry ₱45.00 ₱ 60.00 ₱ 75.00

Wintermelon ₱45.00 ₱ 60.00 ₱ 75.00

Fruit Teas Small (360 ml) Medium (500 ml) Large (700ml)

Blueberry ₱ 40.00 ₱ 50.00 ₱ 70.00

Green Apple ₱ 40.00 ₱ 50.00 ₱ 70.00

Kiwi ₱ 40.00 ₱ 50.00 ₱ 70.00

Lychee ₱ 40.00 ₱ 50.00 ₱ 70.00

Mango ₱ 40.00 ₱ 50.00 ₱ 70.00

Passion Fruit ₱ 40.00 ₱ 50.00 ₱ 70.00

Strawberry ₱ 40.00 ₱ 50.00 ₱ 70.00

Wintermelon ₱ 40.00 ₱ 50.00 ₱ 70.00

Blueberry ₱ 40.00 ₱ 50.00 ₱ 75.00

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 Yakult Fruit Teas Small (360 ml) Medium (500 ml) Large (700ml)

Green Apple ₱45.00 ₱ 60.00 ₱ 75.00

Kiwi ₱45.00 ₱ 60.00 ₱ 75.00

Lychee ₱45.00 ₱ 60.00 ₱ 75.00

Mango ₱45.00 ₱ 60.00 ₱ 75.00

Passion Fruit ₱45.00 ₱ 60.00 ₱ 75.00

Strawberry ₱45.00 ₱ 60.00 ₱ 75.00

Wintermelon ₱45.00 ₱ 60.00 ₱ 75.00

Hot Milk Teas Small (360 ml)

Blueberry ₱ 40.00

Chocolate ₱ 40.00

Cookies and Cream ₱ 40.00

Green Apple ₱ 40.00

Kiwi ₱ 40.00

Lychee ₱ 40.00

Mango ₱ 40.00

Passion Fruit ₱ 40.00

Strawberry ₱ 40.00

Wintermelon ₱ 40.00

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 Milk Tea Ice Cream Regular With Cotton Candy

Chocolate ₱ 25.00 ₱ 35.00

Strawberry ₱ 25.00 ₱ 35.00

Vanilla ₱ 25.00 ₱ 35.00

Shaved Ice Regular With Cotton Candy

Blueberry ₱ 55.00 ₱ 65.00

Chocolate ₱ 55.00 ₱ 65.00

Cookies and Cream ₱ 55.00 ₱ 65.00

Green Apple ₱ 55.00 ₱ 65.00

Kiwi ₱ 55.00 ₱ 65.00

Lychee ₱ 55.00 ₱ 65.00

Mango ₱ 55.00 ₱ 65.00

Passion Fruit ₱ 55.00 ₱ 65.00

Strawberry ₱ 55.00 ₱ 65.00

Wintermelon ₱ 55.00 ₱ 65.00

Tutti Fruti ₱ 75.00 ₱ 85.00

Mango Graham ₱ 75.00 ₱ 85.00

Ice Shaved de Leche ₱ 75.00 ₱ 85.00

Bingsoo ₱ 75.00 ₱ 85.00

Hawaiian Shaved ₱ 75.00 ₱ 85.00

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Organizational Plan

Regarding the positions within the business, Mr. Poquiz will act as the general

manager of Baliktanawan since he has the qualities of a manager must have like being

versatile and the ability to deal with changes effectively. Ms. Bautista will be our accountant

for she has a great sense of ethics and emphasizes accuracy. On the other hand, Ms. Reyes

will be our operation head for she can work under pressure efficiently and she has a great

sense of leadership. Ms. Garbo will be our marketing head who will be in-charge to promote

Baliktanawan’s products. Ms. Bolante will be our cashier since she is trustworthy enough to

handle the funds from the business. Mr. Posadas and Ms. Tibayan will be appointed as the

milktea barristas for they have the abilities associated on it. Furthermore, Ms. Ramirez, and

Ms. Viray will be the service crews for they have the qualities such as patient, hospitable and

attentive. Lastly, Mr. Orgando will be the head cook of Baliktanawan.

JESMAR POQUIZ

(MANAGER)

MARIEL BAUTISTA MARIANNE REYES LARA GARBO

(ACCOUNTANT) (OPERATION HEAD) (MARKETING HEAD)

JOBIEL VINCENT ERIKA CHARLES

BOLANTE POSADAS RAMIREZ ORGANDO

(CASHIER) (BARRISTA) (SERVICE (HEAD COOK)

CREW)

KRISHA AIRA VIRAY

TIBAYAN
(SERVICE
(BARRISTA) CREW)
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Marketing Strategies

We will use different marketing strategies for the business such as print advertisement,

sales promotion and the direct and social media marketing. The promotional tools will be used

by means of giving flyers to the public. Moreover, the business will offer different discounts in

occasions related to Philippine history like Buwan ng Wika, and Christmas to efficiently promote

the business. Lastly, the most common but an effective way to promote the business is through

social media marketing which includes Baliktanawan Facebook page, online video ads, and

promotional blog.

1.4 Significance of the Study

This section will provide a brief description on the various significances of the study

given:

To the target market – We believe that the customers will benefit to the business because the

study is made for them to provide the desires and satisfy the

customers.

To the government – The taxes coming from the income of Baliktanawan can help the

government for the improvement of the infrastructures; build more

infrastructures for the betterment of Alaminos.

To future researcher – The proposed study will benefit and help the future researcher as their

guide towards establishing a brassiere. Also, to apply the

recommendations of the recent researchers so that they can gather a

better result.

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1.5 Definitions of Terms

For a better comprehension on this research study, the following definitions of terms are

provided:

Barong Tagalog- a light loose long-sleeved man’s shirt ; national dress of the Philippines.

Baro’t Saya- the national dress of the Philippines for woman.

Brassiere- a large, open and noisy place with a large selection of products.

Cha Wei - one of the suppliers of milk tea syrups of Baliktanawan.

Cotton Candy- a large, soft ball of sugar that has been spun in a special machine to form

long fibers which are collected on a stick.

Milk Tea– is a combination of milk and tea with honey which could be added with toppings

and syrups.

Shaved Ice- is ice that is finely shaved through a blade. The shaved ice allows for the

delicious flavoring to really soak in and keep the best consistency around.

Yakult – is a probiotic dairy product and one of the ingredients of Yakult Milk Tea.

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 Chapter II

Review of Related Literature

This chapter presents a summary of related local and foreign literatures which have

shown similar and interesting results considered relevant to the research being studied. The

review was undertaken to gain further insights and lend support to the study.

Industry Analysis

Baliktanawan belongs to food industry which collects diverse business concept and

culture. According to Philippine Food Industry (2018), the growing demand for convenience has

led the expansion of the Philippine food service industry in the form of fast food restaurants and

casual dining restaurants. Full service restaurants are also growing, especially in fashionable

shopping or dining areas in Metro Manila. Competition in this segment is keen; with business

operators are always interested in new ideas to attract customers.

When it comes to tea related products, milk tea registered a current value growth in 2016

despite that Philippines is not a tea-drinking country. It is forecasted by an article entitled Tea in

the Philippines (2016) that tea may remain second to coffee in overall hot drinks, but it will grow

minimal but positive, likely to be driven by slowly increasing awareness of brands.

In addition, food industry especially in desserts in Mexico registered a positive

compound annual growth rate (CAGR) of 2.65% during the period 2012 to 2017 with a sales

value of MXN 1,271.72 Million in 2017, an increase of 5.11% over 2016. The market achieved

its strongest performance in 2017, when it grew by 5.11% over its previous year and its weakest

performance in 2015, when it increased by 1.96% over 2014. Taking into considerations, if we

22
look at the geographical location of Mexico, it is located near the equator similar to Philippines.

If Mexico were able to establish a good demand of desserts in their country, thus it is also

probable in the Philippines. As we know that Filipinos are food lovers (“Dairy-Based & Soy-

Based Desserts (Dairy & Soy Food) Market in Mexico - Outlook to 2022: Market Size, Growth

and Forecast Analytics,” n.d., para.1).

The Milk tea

Nowadays, milk tea shops can be seen everywhere. According to Mead (2014), even

small milk tea shops can boast of ranking in the profits for two hundred to three hundred (200 –

300) sold drinks in a single day. It is also being patronized and is special because of its different

flavor that customers getting excited with. Aside from flavors are the toppings like tapioca

(Richard, 2011).

Furthermore, milk tea shops are currently among the most popular hang-out places in the

metro along with cafés. “Times are changing, so do people. They want to socialize more. A milk

tea shop is therefore a perfect place for them. It gives a certain fun and cool environment,

whereas coffee shops tend to be more formal and serious.”

Today’s generation also has a special craving for anything sweet. Given that milk tea is relatively

a milder beverage than coffee (not to mention sweeter), it has an after taste that is not as distinct

as its counterpart – a quality that most teens and yuppies appreciate. Obviously, that is one the

reasons why the industry continues to prosper (Farro, 2014).

Shaved Ice

Baliktanawan will also offer shaved ice which is a frozen dessert in which blocks of ice

are shaved into snow-like mounds, thin, feather-like shards or curly swirls. It is particularly

23
popular in Asian countries where it can be found in different forms. Since, most of them hail

from places where summers are hot, and fruit plentiful. Thus, this product is also suitable in the

Philippines. Moreover, shave ice is now being offered in the Philippines and is being patronized

by Filipinos especially in Manila (Filloon, 2018).

Shaved Ice Business as Profitable

Moreover, sales for a typical shaved ice business will range from $100 to $2000 or

P10553.56 a day but it will still depend on a number of factors including location, competition,

length of the season, and business history (Dustin, 2017).

Ice cream

Additionally, Baliktanawan will offer Ice cream which is a mixture of milk, cream, sugar,

and sometimes other ingredients. Ice cream has been a popular treat for hundreds of years but

only become common place since the widespread use of refrigeration. The exploding popularity

of ice cream has led to a number of ice cream variations including frozen custard, frozen yogurt,

and even non-dairy versions made with ingredients like coconut milk (Moncel, 2018).

Furthermore, ice cream and frozen desserts recorded slightly higher current value growth in 2018

than in 2017. Ice cream is the only source of growth, since value sales of other frozen desserts

remain negligible due to limited availability.

Demand for Ice Cream

Subsequently, Ice Cream Market in the Philippines provides insights on high growth

categories to target, trends in the usage of packaging materials, types, closures, and information

on category level distribution and brands market shares. According to Market Research Store

24
(2015), the volume consumption of Ice Cream products is forecast to grow from 97.1 Kg million

in 2014 to 133.7 Kg million in 2019 to register growth at a CAGR of 6.6% during 2014-2019.

Furthermore, On-trade transactions accounted for 31.3% of the market share of Ice Cream

products value sales in local currency terms and 25.3% of volume sales in 2014.

Also, Ice cream and frozen desserts recorded slightly higher current value growth in 2018

than in 2017. Ice cream is the only source of growth, since value sales of frozen desserts remain

negligible due to limited availability. Single portion dairy ice cream is a key growth driver, since

it is accessible to all income groups, and is available even through sari-sari stores (traditional

neighborhood stores).

Rice Meal

Next in line, Baliktanawan will offer rice bowl since Philippines is a rice-eating culture.

Even when we’re told to shift to other means in these trying times, us Filipinos will find a way to

eat our favorite starch in 2018, whether unlimited or not. Our love of the grain spans back to our

earliest roots, and it has become a staple in our diets from breakfast to dinner. We need it to

accompany our beloved ulam, for it to mop up all the soups and sauces our food has. This is why

we are also so obsessed with the rice bowl, that most restaurants in the Philippines, no matter

what cuisine, often has one of these on their menu to appeal to the masses.

Rice is one of the most consumed staple foods in the Philippines. That is, for every peso

spent on food by an average Filipino household, 20 centavos of it goes to rice (Lazaro, 2012).

Bureau of Agriculture and Statistics reported that 20-30% of the household income goes to food

expenditure. Demand theory states that rice is an inferior good, that is higher income consumers,

would buy more staples other than rice. Moreover, Engel law says that when income increases,

25
expenditure on food would decrease. However this does not seem to apply in the case of the

Philippines. The Survey on Food Demand (SFD) conducted by the Bureau of Agricultural

Statistics reported that not even an increase in income led to a reduction in demand (Benaning,

2013).

Demand for Rice

According to the study of Albert et al., (2012) rice is a part of everyday life of the

Filipinos.Normally, Filipinos consume rice three times a day and almost all Filipino dishes are

partnered with rice.Needless to say, a meal is not a meal without rice in the Philippines. Rice

accounts for 20% of foodexpenditures for average households, and almost up to 30% for

households belonging to the bottom thirdof the society. The study also states that the total Rice

Consumption in the Philippines showed an upwardtrend and grew at an average of 3.51 from

year 1990 to 2012.

Cotton Candy

Following these, candy has played a large role in world history and, in the United States,

few candies have had quite the cultural splash as cotton candy, a confection made of spun sugar

and air. With the development of more efficient, automated machines it is expected that the

market for cotton candy will substantially increase in the coming years (Made, 2010).

Demand of Cotton Candy

Evidently, The Indonesian confectionery market had total revenues of $1,623.7m in

2018, representing a compound annual growth rate (CAGR) of 6.1% between 2014 and 2018.

Market consumption volume increased with a CAGR of 3.7% between 2014 and 2018, to reach a

26
total of 209.6 million kilograms in 2018. Rising demand for sugary confectionery products

helped market growth in Indonesia (“Confectionery in Indonesia,”n.d., para. 2).

In 2018, the Malaysia Confectionery market was valued at 1621 MYR Mn, growing at a

CAGR of 3.16%. The Chocolate category accounted for the largest market, while registering an

average CAGR of 3.88% since 2010. Chewing Gum is the most preferred segment within the

Gum category followed by Bubble Gum. The Sugar Confectionery category has been registering

a steady growth of 2.39% in CAGR since 2010, and is expected to continue over the forecast

period. Among the distribution channels, the Supermarkets and Hypermarkets channel is the

most preferred by majority of the people in Malaysia. Based from these, there is a higher

probability that cotton candy would have a high demand in the Philippines. Considering the

consuming behavior of the Filipino, they are fond of sweets and cold treats (“Malaysia

Confectionery Market Analysis (2013 - 2023),”n.d., para.2).

In Conclusion, there are 7 things to consider in determining a feasible business. First is

the entrepreneurial skill. Second, customer needs. Third is the market opportunity. Fourth,

visible location Fifth, competitive advantage Six, motivational strategies Seven, is the

consideration of capital (Zwilling, 2012).

27
 CHAPTER III

METHODOLOGY

This chapter presents and describes the needed data and information that will be used in

the entire study. It describes who will be the respondents and the focus of research. Also, it

shows the procedure in gathering data. In addition, it discusses the research design, locale of the

study, sampling, and what statistical tools would be used to interpret the collected data.

Research Design

We will use a descriptive research for both qualitative and quantitative in order to know

the insights of the target customers towards milk tea products, ice cream, shaved ice, rice meals

and the establishment itself like the ambiance, accessibility and the staffs that will be used for

future alterations and behaviors. Also, we will use observational research for which we will

observe the nearest competitors in order to have basis for financial assumptions regarding the

sales to be used for preparing forecasted financial statements. This is the most suitable for

research design when it comes to gathering insights or information that can answer the statement

of the problem.

Sampling

We will gather primary data through the use of selecting a portion of the target

participant from the whole population. In this study, we will use simple random sampling for the

quantitative and purposive sampling for the qualitative. This sampling gives all target

participants to have an equal chance of being included in the study to share his or her knowledge

about the study.

28
Participants and Locale of the Study

In fact, considering the business is near in the Great Plebeian College and Golden West

College, we will acquire one hundred (100) respondents for the statistics of the milk tea drinkers,

ice cream eaters, shaved ice consumers and rice meal customers and only the qualified

participants can participate for the survey from the identified research locale (see Table 3.1).

Also, five (5) milk tea drinkers, five (5) shaved ice consumers, five (5) ice cream eaters, five (5)

rice meal customers, and four (4) business competitors namely Apple Joy Café, Silvers by Gold

Café, I Love Milktea, and Gaudencios Café will serve as our participants for the interview.

Number of Respondents

Survey

The Great Plebeian College 50

Golden West College 50

Total Respondents for the Survey 100

Interview

Milk Tea Drinkers 5

Shaved Ice Consumers 5

Ice Cream Eaters 5

Rice Meal Customers 5

Competitors 4

Total Respondent for the Interview 24

Table 3.1 List of Participants

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 We will disseminate the survey questionnaires around specific schools that surround the

business such as Great Plebeian College and Golden West College (see Figure 3.1) and will

conduct an interview to the four (4) nearest competitors of the business.

Figure 3.1 Locale of the Study

Procedure

Actual Procedure for the Survey

First, we will ask for the approval of the permission letter from the research adviser.

After which, we will go to the school dean or principal of the school and will give them the

permission letter to conduct a survey inside their institution. This permission letter consists of the

name of the researchers, institution, purpose, and a short background about the study. If we are

allowed to conduct the survey, we will thank the dean or the principal. If not, we will proceed to

the other target schools. Second, we will go to the classroom to conduct a survey for the students.

30
Third, we will introduce our name, institution, purpose, a short background about the study, and

ask the permission of the teacher. If the teacher granted the permission, we will proceed to the

briefing of the students (see Appendix A). If not, we will proceed to other rooms and repeat the

third part of the procedure. Fourth, we will introduce ourselves, institution, purpose, and short

background about the study, and will ask permission from the students to participate in the

survey by showing the informed consent. We will gather the students who agreed to participate

in the study. Fifth, we will let the participants fill up the demographic questionnaire containing

age, gender, year level and whether they drink milk tea, eat shaved ice, ice cream and rice bowls

or not. After answering the demographic questionnaire, we will check whether the participants

are qualified to answer the survey. Next, we will give the survey questionnaire, explain the

instruction, and let the participants answer the survey form. Lastly, if the students are done in

answering the survey questionnaire, we will collect all the survey forms and proceed to

debriefing (see Appendix E), ask any questions from the respondents and thank them for their

participation.

Actual Procedure for the Interview

For the interview, we will first introduce ourselves and the purpose of our interview.

After which, we will ask for the permission of the business owners whether they are willing to

participate in our study. Next, we will ask for the permission of the respondents if we can record

his or her answer. If not, we will use a pen and paper instead. After the interview was conducted,

we will debrief the respondents.

31
Measures

Consent Form

Consent form will be signed by the participants prior to the survey proper. The consent

form (see Appendix B) indicates the request for participation, name of the researchers, name of

the research supervisor, purpose of the study, an agreement that the participants will not receive

any compensation from the researchers, and the process before the survey.

Demographics

The demographic questionnaire (see Appendix C) is where the researcher will know

whether the participant is qualified for the survey. Also, it contains questions such as their name

(optional), gender, whether they are student or not, grade level, whether they drink milk tea or

not and eat ice cream, rice meals, shaved ice, and cotton candy or not. Their name is optional for

confidentiality and anonymity purposes. Since the target market of Baliktanawan is the students,

the participant must also be a student to participate to the survey. To know more about target

markets’ insights, the researchers must know whether they are consumers of our product or not.

Survey Form

Survey is a method of gathering information from an individual by answering a survey

form. The survey form (see Appendix D) will be used is printed that will be given to the said

respondents. It consists of 3 parts having ten questions. The first part is just a checklist where the

participant will just check the corresponding criteria to the said products. It contains four criteria

that involve taste, quality, price and availability. The second part is a 2-Point Likert Scale where

participant will just check the square that corresponds on his or her answer. It consists of

32
determining whether they consider accessibility, location, atmosphere, influence of discounts,

and the effect of TRAIN Law . The last part consists of two questions where respondents will

rank the following beverages categorized by Desserts and Beverages, and Rice Meals in

accordance to their preferences. The given beverages are the products of Baliktanawan along

with its substitutes. It allows the respondents to compare the substitute products of Baliktanawan

and place them in order according to their preference with number one as the highest or their

most preferred and number eight as the lowest or least preferred product.

Interview Questions

The prepared interview questions are presented in Appendix D. Where, there are

questions for competitors. Questions for the competitors includes the capital, factors in

considering their location, life of the business, why the customers are patronizing them and what

is their edge over their competitors. The interview questions will help us in answering the

statement of the problem and it will also serve as a guide to come up with the conclusion.

Statistical Tools and Data Analysis

We will make use of bar graph to present the gathered data. For the first part of the

survey, it will be presented in a bar graph. And also, for the financial assumptions regarding

sales for the year, we will use the formula in Figure 3.3. For the last part, we will add the

respective rank of each beverage and be presented in a bar graph.

When we finished observing our fellow competitors and counting customers, we can

know whether there is a demand. If there is a demand, the null hypothesis will be rejected and

the alternative hypothesis is accepted. If not, the null hypothesis will be accepted and the

alternative hypothesis will be rejected. Also, when projecting financial statements, if the income

33
statement shows net loss then the null hypothesis will be accepted and the alternative hypothesis

will be rejected. However, if it shows net income, the null hypothesis will be rejected and the

alternative hypothesis is accepted. Furthermore, if Baliktanwan is feasible, the null hypothesis

will be rejected and the alternative hypothesis is accepted and if it is not, then the null hypothesis

will be accepted and the alternative hypothesis will be rejected. Or simply, Table 3.2 shows the

interpretation for the gathered data along with the hypothesis.

Ho Ha

(null hypothesis) (alternative hypothesis)

Demand

There is no demand. Accept Reject

There is a demand Reject Accept

Profitability

Net Loss Accept Reject

Net Income Reject Accept

Feasibility

Profitable Accept Reject

Not Profitable Reject Accept

Table 3.2 Interpretation of the data along with the hypothesis

34
Where, W is the weight or the frequency of an item that corresponds to X.

X is the frequency that a respondent acquires our product per week

n is the total number of the sample.

Figure 3.3 Formula of Average Demand

Figure 3.4 Formula of Projected Sales for the Year

Bibliography

Cabaero, N. B. (2015, April 15). Retrieved from: https://www.sunstar.com.ph/article/3650.

35
Cortez, P. (2016, March 3). Retrieved from: http://www.pepper.ph/why-the-rice-bowl-is-a-

universal-pinoy-treat/.

Filloon, W. (2018, may 24). eater. Retrieved march 15, 2019, from:

https://www.eater.com/2018/5/24/17376180/shave-ice-shaved-ice-kakigori-dessert-bao-bing-

halo-halo.

Hernandez, A. (2017, May 18). Let’s Talk About Milk Tea.

K., D. (2017, January 30). Retrieved from: https://www.1-800-shaved-ice.com/bureandex.html.

Made, H. P. (2010, March 17). Cotton Candy Forum. Retrieved March 15, 2019, from:

http://www.madehow.com/Volume-4/Cotton-Candy.html.

Moncel, B. (2018, December 31). The Spruce eats. Retrieved March 15, 2019, from:

https://www.thespruceeats.com/what-is-ice-cream-1328784.

Moskin, J. (2010, june 15). Putting the fresh in refreshment.

Paguio, R. L. (2014, october 29). Entrepreneur Philippines. Retrieved march 15, 2019, from:

https://www.entrepreneur.com.ph/franchising/how-milk-tea-fascinates-young-consumers-and-

entrepreneurs-esupplier.

Veneracion, C. (2014, june 9). casa veneracion. Retrieved march 15, 2019, from:

https://casaveneracion.com/asia-rice-bowl-dishes-filipino-rice-topping-japanese-donburi-and-

korean-bibimbap/.

Mead, J. (2014). The Philippines Milk Tea Craze: An Opportunity for Entrepreneurs. Retrieved

from: http://www.digmnl.com/lifestyle/philippines-milk-tea-business.

36
Philippine Food Industry.(2018). Philippine Food Industry.Retrieved from:

http://www.ifexphilippines.com/en/General-Info/Philippine-Food-Industry.

Richard, C. (n.d). (2011). Got balls?. Good Taste, 12.

Tea in the Philippines.(n.d). (2016).Tea in the Philippines.Retrieved from:

https://usprwire.com/Detailed/Food_Beverages/New_market_study_Tea_in_the_Philippines_has

_been_published_346940.shtml.

37
 APPENDIX A

Participant Briefing Sheet

Good day!

We are 1st year college students from Kingfisher School of Business and Finance. We ask

for your permission to take a few minutes of your time to fill out our survey form. This will be

confidential so do not be afraid to offer and share whatever information you can.

We hope that for each item, you will encircle your answers honestly. There were no right

or wrong answers; we just need your opinions and insights. If you have to correct any answers,

erase them completely and make your answers clear. Thank you!

38
 APPENDIX B

Informed Consent Form

Dear Participant,

We would like to invite you to be part of a research study about the feasibility of

establishing Baliktanawan in Alaminos City, Pangasinan. However, before you consent to be a

volunteer, we want you to read the following and ask many questions as necessary to be sure that

you understand what participant will involve.

The names of the students conducting this research are Mr. Jesmar Poquiz, Mr. Charles

Dharylle Orgando, Mr. Vincent Posadas, Ms. Erika Mae Ramirez, Ms. Jobiel Bolante, Ms. Lara

Allysa Garbo, Ms. Ma. Krisha Tibayan, Ms. Marianne Reyes, Ms. Mariel Bautista, and Ms.

AiraViray.

The purpose of the study is to see if there is a demand towards desserts here in Alaminos

City, Pangasinan and whether Baliktanawan is profitable and feasible in Alaminos City,

Pangasinan.

If you agree to be part of the research study, it will only take around 15 to 30 minutes of

your time and you will not need to return unless you would like to ask questions to the

researchers about the study.

If you prefer to participate in this study, you will first be asked to fill out all the necessary

information in the demographic questionnaire such as age, gender, year level, and a lot more.

Also, you need to complete all the remaining items in the given demographic questionnaires.

39
 The researchers cannot see any risk or discomfort in your participation in this research

study though you can consult to the researchers if you feel any uncomfortable questions.

In addition, the researchers plan to have the results of this study private and we will not

include any information that would identify you. Your privacy will be protected and your

research records will be confidential. Only the researchers and Mr. Raul Serafica together with

the panelist will have access to your research files and data. Although the research data may be

shared with other teachers but will never contain any information that could possibly identify

you.

Moreover, your answers on all questionnaires will be coded with numbers, and only, the

primary researchers will have access to the names. No identifying information will appear on

any material. We will store your data to use for future research studies.

If you have questions about this research, you may contact our group leader, Mr. Poquiz

at 09338578393.

Participating in this study is completely voluntary. Even if you decide to participate now,

you may change your mind and stop at any time. You do not have to answer a question you do

not want to answer. You will not use any benefits to which you are otherwise entitled nor you

will be penalized. We have tried to explain all the important details about the study to you. If you

have any questions that are not answered here, the researchers will be happy to give you more

information.

My signature in this document indicates that I had read the above information and I have

had a chance to ask questions to help me understand what my participation involves. I agreed to

be in the study until I decided otherwise. I have been told that by signing this consent form. I am

not giving up any of my legal rights.

40
SIGNATURE OF PARTICIPANT OVER PRINTED NAME

DATE

SIGNATURE OF THE RESEARCHER

_______________________

Jesmar Poquiz

DATE _____________

41
 CONTROL NO. CONTROL NO.

APPENDIX C APPENDIX C

Demographic Questionnaire Demographic Questionnaire

Instruction: Please fill in the blank or put a Instruction: Please fill in the blank or put a

check (/) mark beside the given options. check (/) mark beside the given options.

Please answer this honestly. Please answer this honestly.

Name (optional): Name (optional):

Gender: Male Female Gender: Male Female

Student: Yes No Student: Yes No

Grade Level: Grade Level:

Grade 7 Grade 8 Grade 7 Grade 8

Grade 9 Grade 10 Grade 9 Grade 10

Grade 11 Grade 12 Grade 11 Grade 12

College Professional College Professional

Do you drink Milk tea? Yes No Do you drink Milk tea? Yes No

Do you patronize shaved ice? Do you patronize shaved ice?

Yes No Yes No

Do you eat ice cream? Yes No Do you eat ice cream? Yes No

Do you like rice bowls? Yes No Do you like rice bowls? Yes No

42
 APPENDIX D

Survey Form and Interview Questionnaire

Survey Form

I. Instruction: Please put a check (/) mark beside if you consider the following. Please

answer this honestly.

Milk Tea Shaved Ice Ice Cream Rice Meal Cotton Candy

Taste

Quality

Price

Availability

II. Instruction: Please fill in the blank or put a check (/) mark beside the given

options.

1. Do you consider the accessibility of a Milk Tea shop? Yes No

2. Do you consider the location of a Milk Tea shop? Yes No

3. Do you consider the atmosphere of a Milk Tea shop? Yes No

4. Are you easily influence by events and discounts? Yes No

5. Recently TRAIN Law was implemented, do you still want to buy milk tea?

Yes No

43
 III. Instruction: Please rank according to your preferences. From 1 as the highest and 8

as the lowest.

Desserts and Beverages Rice Meals

____ Coffee ____ Adobo (Chicken)

____ Cotton Candy ____ Adobo (Pork)

____ Halo- Halo ____ Longgsilog

____ Ice Cream ____ Porksilog

____ Milk Tea ____ Sausilog

____ Palamig ____ Siomai Rice

____Shaved Ice ____ Tapsilog

____Soda (Soft drinks) ____ Tocilog

Interview Questions For Competitors

1. How much is your capital?

2. What are the factors you considered in choosing a location?

3. How long is your business in this strategy?

4. What is/are the reasons why your customers are keep on returning back to your milk tea

shop?

5. In comparison with other milk tea shop, what do you think is/are your advantages?

44
 APPENDIX E

Participant Debriefing Sheet

Thank you for participating in this study!

We hope you enjoyed the experience. This form provides information for our research

study. Please feel free to ask any questions or to comment on any aspect of the study.

You were told that the purpose of this study was to recognize your preferences about

dessert shops. To protect the integrity of this research, we could not fully reveal all the details of

this study at the start of the procedure.

We assure you that all the information you provided will remain confidential.

Results gathered from this study could help the researchers decide whether there is a

demand towards desserts and milk tea here in Alaminos City and whether Baliktanawan will be

profitable and feasible here in Alaminos City.

If you have questions regarding our study, please ask. If you have inquiries later, you

may contact our group leader: Mr. Jesmar Poquiz (09338578393).

45