Republic of the Philippines

Department of Science and Technology

Philippine Science High School - Cagayan Valley Campus
Brgy. Masoc, Bayombong, Nueva Vizcaya

Chicken Pits
Philippine Science High School - Cagayan Valley Campus
Brgy. Masoc, Bayombong, Nueva Vizcaya

Title Page

An Agri-Business Implementation Report

In partial fulfillment of the Requirements in Elective: Agriculture

Submitted by:
Agcaoili, Richard Francis
Santos, Reigh Seigfred
Maningas, Julia Augustine
Navarro, Andrea Noelle
Simplina, Kythe Lexxan
Tajon, Jaiven Kamylle

Submitted to:
Arnold D. Pitpitunge, Ph.D.

December 2019
 Table of Contents

Title Page.......................................................................................................................1

Table of Contents...........................................................................................................2

I. Executive Summary...............................................................................................4

II. Business Description..............................................................................................4

A. Advisors..........................................................................................................4

B. Products and Services........................................................................................5

C. Long Term Aim of Business............................................................................6

D. Objectives.......................................................................................................7

E. SWOT Analysis...................................................................................................7

III. Market Analysis.....................................................................................................8

A. Target Market.................................................................................................8

B. Market Trends....................................................................................................9

C. Profile of Competitors..................................................................................10

D. Competitive Advantage................................................................................11

E. Benefits to Clients............................................................................................12

IV. Marketing Strategy...........................................................................................12

A. Income Sources............................................................................................12

B. Marketing Strategy...........................................................................................13

C. Pricing..........................................................................................................13

D. Advertising and Promotion..........................................................................13

E. Sales Strategy...................................................................................................14

V. Staffing and Operations........................................................................................14

A. Management Organization Charts...............................................................15

B. Staffing Operations..........................................................................................15

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VI. Financial Projections........................................................................................16

A. Key Assumptions.........................................................................................16

B. Profit and Loss Accounts.................................................................................16

C. Balance Sheets.............................................................................................17

D. Cash Flow Projections..................................................................................19

VII. Funding Requirements.....................................................................................19

VIII. Appendices.......................................................................................................20

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 I. Executive Summary
Chicken Pits corporation specializes in chicken production and processing to
offer various products, such as chicken fingers and chicken cutlet rice meal, which
were eagerly accepted by the consumers for their rich flavor, tenderness, and
affordability. From raising chickens to cooking and selling, Chicken Pits does it all to
ensure high quality and customer satisfaction. In the few weeks that Chicken Pits Co.
ran its food retail business, it proved to be a profitable yet equally customer-friendly
business, earning the corporation a return of investment.
Fulfilling its major goals of serving chicken-centered products to the PSHS-
CVC community and having the business to pay off by inducing profit, the
corporation is indeed competent and competitive enough to stand amongst the other
food businesses in PSHS-CVC. In addition, the members of the corporation exhibited
a productive working style that revolved on specialization wherein a specific
member/s was/were assigned to separate stages – pre-cooking stage, cooking stage,
selling stage, and to the cleaning and dishwashing stage. As for the production stage,
there was a daily rotation in the maintenance of the chickens' health and wellness such
that one member was designated one day in every week of the production phase. This
method allowed for less conflict, efficient distribution of tasks among personnel, and
higher focus and skill allotted in every step of the way so as to secure the image of
Chicken Pits Corporation as a qualified entrepreneur.

II. Business Description

A. Advisors
The cooking area of the business, the Food Laboratory, is located beside the
Multi-Purpose Hall of the campus. All the agri-businesses thrive up to their respective
production in the said laboratory. In lieu with this, the teachers of these two classes,
Mrs. Me L. Galate and Dr. Arnold Pitpitunge, are always in supervision with their
class. So, these teachers have always been the advisors of the Chicken Pits’ business
and the production that lies between.

Dr. Arnold Pitpitunge

Credentials-wise, Dr. Pitpitunge cannot be questioned. He often gives
advise to us, young-business students, about the economically viable price of

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 the products we sell. He also checks the quality of the product being produced
before being sold in public. As we call him “Sir Pits”, he is not a doctor in
teaching for nothing. Every time he gives advice, he always makes sure that it
should be followed. He has gained our respect and the success of our business
is credited to his untiring support. He is always there when the group needs
overtime to cook excess supplies.

Mrs. Me L. Galate
When talking about the supervision and the expertise in cooking, Mrs.
Galate could not shudder. She checks the methodologies and the over-all
cleanliness of the workplace of the business in order to prevent contaminations
and possible failure that could greatly affect the monetary gains of the group.
She manages the over-all flow of the laboratory such as the gas problems
wherein it was fully consumed that no one could not cook anymore. The effort
to immediately look for a new and filled gas was done by her. Without that for
instance, the gain for that day could have been zero.

B. Products and Services

Product Features
Chicken Fingers Chicken fingers are chicken strips marinated in
calamansi for two days before being cooked. These
finger food has been the game changer of the
business. Chicken Pits is best known for it. It is
deep-fried until it turns golden-brown. Every bite
will surely satisfy every tongue.
Fries Patatas! Who does not love them !? Deep-fried fries
brought by Chicken Pits are cost-friendly and #Sulit
when paired with delectable sauces. The fries are
cooked with love and snack is served fresh and hot
for a savorer experience. For a large serving, it will
only cost 30 PhP.
Kikiam and Fishball Kikiam and fishball bring us back to the streets.
Along with the sumptuous sauce prepared by the
group’s own recipe, it will wreak havoc on snack
time of students. It is something students line up for

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 since it would only cost them 25 pesos in a large
amount of food.
Hash Brown Hash browns cannot be under estimated at the very
least. The hash browns that we sold are a method of
our own. With eggs, fries and the cook’s efforts, 55
pesos is absolutely a like-sign for the buyers.
Crispy, eggy and yummy- it is Chicken Pits Hash
brown’s alter ego.

C. Long Term Aim of Business

Chicken Pits aims to provide 100% satisfaction to customers and to maintain
the level of excellent services among other competitors. Furthermore, we are also
encouraged by the values in agri-business which is brand and image, as these two
ingredients are a couple of main drivers in marketing communications. We also aim to
promote good values of company culture and business philosophy. With these, we,
too, are envisioned to control cost at all times and in all areas, and to implement a
conservative approach to growth policy. Lastly, we are ought to create a unique,
innovative, entertaining marketing strategies and menus that will push and
differentiate us from the rest of the competition.

D. Objectives
 Serving quality and affordable foods
 Focusing on Atmosphere and Ambience
 Managing customer relations and providing excellent customer services that
enhances the rapport with students through responsiveness to needs and requests
 Developing a food service that supports skill development of the food staff

E. SWOT Analysis
Strength Weaknesses
 Chicken meat is a staple  Internal competition
product  Low production volume
 Market is relatively stable  Underutilization of
 Product and production capacity/cost efficiency
knowledge are high  Profitability

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  High quality of materials  Structure of capital/debts
and ingredients  Not using food delivery
 Shared tastes and traditions  Single location means limited
 Few competitors reach
 Business management skills  No seeking investor
 Strong bargaining power of
customers
 Good reputation
 Highly motivated and
enthusiastic workforce
 Localized taste

Opportunities Threats
 Health conscious trend  More competition not just in
 High exposure location the market but also in the
 Loyal returning customers production area e.g., the gas

 Potential for growth via stove where we cook and also

food delivery the pans where we will cook

apps/technology our products

 Price war with other
competitors
 Similar concepts or service
among businesses
 Operational costs
 Competitors are located nearby
the Academic buildings
 Rising costs of ingredients
 Competitors offer takeaways
and deliveries

III. Market Analysis

A. Target Market
The target market are Grades 7 and 11 students from PSHS - Cagayan Valley
Campus. Chicken Pits chose the two grade levels because of their willingness to buy
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the products. Grades 7, aged 12 to 13, are willing because of the close proximity of
the business to their classrooms. On the other hand, Grade 11 students, aged 16 to 17,
are present because of their closer relationships with the business owners.
Nevertheless, the business is not limited to this market since the owners shouldn’t
categorize. However, because of limited supplies, Grades 7 and 11 are the nearest
possible consumers. They are located at the Academic Building 1 and 2, respectively,
but the former is nearer to the kitchen area.
Another reason why this market is chosen is because of the complementing
schedules of the customers and the owners. Their recess times complement to when
the owners sold the products.
Approximately 180 customers, both female and male, are included in this
market. The students have already reached the secondary level of education.
Prospective customers emanate from multiple provinces such as Cagayan, Isabela,
and Quirino. The market features students with the ability to purchase products with
low, medium, and high funds. Chicken Pits only targets those who eat chicken meat
because the business does not offer vegetarian snacks.

B. Market Trends
The industry is ideal for the emergence of a small-scale firm for the meantime
because of several reasons.
As of December 2019, there are two official businesses offering their services
to the students. PSHS Cooperative and RLA Eatery are established to provide meals.
The cooperative is more common for PSHS-CVC dormers’ breakfast, lunch, and
dinner. RLA is reputable for their snacks and meals during recess time. Aside from
that, student-run business from the Agriculture Elective are currently providing short-
term food products. With that, there is really a trend and a need for expansion in food
service inside the institution.
Even with an already-varied set of menus, it seems that there is still a gap in
the food industry. According to the preliminary survey from October-November 2019,
students like chicken meals, preferably during lunch. According to Upserve
Restaurant Insider, chicken is the preferred protein choice for people to fulfill their
meat cravings. A snacking trend has also mentioned that the current generation
prefers to build a meal of appetizers or snack foods (McSweeney, 2019). The same
survey concluded that students want street food on the menu, such as isaw and kwek

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kwek. This could have to do with the popularity of food streets or stalls that the
current generation grew up with.

C. Profile of Competitors
The PSHS cooperative is a major opponent in this food industry because it
caters to majority of the students for their daily meals. They are partnered with the
school administration and have called upon the students to make mandatory meal
reservations. This counts both as a strength and as a weakness because profit is
assured, but customer satisfaction may not be. They also have a snack stall on the
Academic Building 2 grounds to a make a closer proximity for the Grades 10 and 11.
However, students view their products as unsatisfying and overpriced sometimes
because of the small serving amount. Their marketing strategy is debatably effective.
Another major disadvantage on their part is that their main location is remote.
Students prefer to buy from closer business like RLA.
The RLA eatery sells snacks and meals alongside the cooperative. It is also a
major opponent because of its reputable and appetizing varied menu. Their prices
complement those of the latter business and some products are even offered at a lower
price. Their strengths include availability of products, expanding range in the menu,
extensive ordering system via SNS, and neighboring location. On the other hand, their
business is commonly hindered by the school management which serves as their
weakness.
Other internal competitors include the student-run businesses brought about by
the Agriculture Elective. Some business offer products that should’ve been cheap but
are very overpriced. This weakness on their part serves as a disadvantage for the
students because they still buy, even though it does not meet their standards. But
because of the convincing attitudes of owners, they are able to sell these snacks.
Another weakness is that food products are diverse, but not substantial for the hunger.
Their marketing strategies are rendered effective since they were able to be sell all
inventories.

D. Competitive Advantage
Since the Chicken Pits organization is made of students, they have close
relations with their schoolmates and may gather up comments and suggestions on
what they are actually looking for in this industry. Thus, it can offer a variety of

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products and services that can lead to efficiencies such as reduced cost. This strategy
enables the owners to directly persuade consumers to try their products, leading to an
increase in sales. The students also offer direct sales, like kitchen-to-classroom
deliveries. This strategy makes sales more effective because students will opt to avail
this service.
Chicken Pits also has access to financial resources, courtesy of investments
from the owners. This enables the business to advance in producing larger outputs and
quantities. It is also ensured that our products are of high quality, pocket-friendly,
aesthetic, and would maximize customer satisfaction. Aside from that, Chicken Pits is
the only firm that offered fishball, kikiam, chicken fingers, and fries at the students’
demands. Thus, it made a unique identity and brand.
One more competitive advantage is the students’ work ethic that enabled them
to produce a satisfying amount of servings, given the limited workspace and time. The
students’ values to continue on and make Chicken Pits a delightful pastime and
business are an advantage in themselves.
These led to a valuable business reputation, even just for a few weeks.

E. Benefits to Clients
Chicken Pits aimed and gave benefits to their market during its
implementation. Firstly, it saves the student time and money to go to the other
competitors. It also saved their energy because unlike the others, the owners approach
the students to have a direct interaction. Thus, our business is easily accessible and
there is no need for further transportation.
Our products are the cheapest they can get and at the same time, the owners
strive to make them as appetizing as possible. Therefore, it is promised that the
consumer will get their money’s worth. The products are prepared with utmost care
and hygiene, so it is safe to eat these delicious, and healthy food. This is critical to the
customer. The serving amount can also end the consumer’s hunger just in time for
their recess.
Overall, the business promised to benefit its clients through time-, money-, and
energy-saving ways, easy access, better customer satisfaction, safety, and
convenience.

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 IV. Marketing Strategy
A. Income Sources
The main source of income of the corporation are the products sold. As
explained in the sales strategy (refer to the part below), the price of the products were
based on the capital spent, which is considered to be the base price. This base price
was, then, increased to a price that is budget-friendly yet enough to give good profit to
the corporation. The capital subtracted from the final selling price of a product is
considered to be the income that the corporation will gain from it. The scope of the
products sold by the corporation include chicken-related rice meals and snacks.

B. Marketing Strategy
The needed ingredients and materials in making the products (that were not
available in the cooking area) were provided/bought by the externs of the group who
were later on paid back by the group (total expenses were divided among the
members). The externs are also the ones tasked to prepare the ingredients to make
them ready for cooking (e.g. marinating the chicken fingers), resulting to faster
kitchen work.
One important factor that was based on in planning the overall flow of the
business was the survey conducted on the potential/target consumers, since they’re
considered to be the heart of the market. An idea on the performance and products of
the opponents also helped the corporation in the planning process.
The marketing strategy planned and prepared by the corporation was quite
similar to the sales strategy (refer to the sales strategy part below).

C. Pricing
For the pricing, the main factor that was put in consideration was the capital or
budget used/spent in buying the needed materials/equipment. This did not just include
merely the main ingredients of the product sold but also the external expenses such as
the gasoline used for cooking. The capital spent was used as the basis for the base
price, with the gaining back of spent money as a prioritized factor. The base price was
then increased to a reasonable yet student-friendly price to assure that the corporation
will still earn its profit.

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 D. Advertising and Promotion
The main method of advertising used was through Social networking sites,
specifically messenger and twitter. Advertisement flyers were created and designed
by the advertising director, and afterwards, disseminated through posting and group
chats. Other than this, the products sold were peddled around by the group on the
Academic buildings during free periods and break times. The said way of selling,
itself, is already a form of promotion and advertisement, which can be considered
effective based on the sales garnered by the group.

E. Sales Strategy
The business has a number of competitors in the market, thus, the corporation
has devised an overall strategy to make sure that they’re ahead of the competition.
This was done with the help of extensive research including the survey conducted on
its potential and target consumers. The main factors that were studied and taken in
consideration include the right product mix, the price of the products, and the
advertising sector.
Finding the right product mix was important, especially with the business’s
competitors having almost similar products as chicken pits. The group had to make
sure that what they sold was fit for the taste and preference of the consumers. The
group also studied the selling schedule of each of the product very well. For instance,
chicken fingers and fries were sold on the same they because they go well together,
thus tempting the consumers to get both of the products.
The prices of the products were also studied and well thought of. The group
had to assure that the prices were just right in a sense that it did not have to give up
the profit that the corporation will earn, but at the same time remain budget-friendly
enough for the students.
The last factor was the advertising sector. It was important that the consumers
were aware of the products being sold and when they will be sold. This was assured
by the group through disseminating advertisements and through announcements. The
members of the group, themselves, were the ones who peddled around the academic
buildings to offer the product to the consumers.

V. Staffing and Operations

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 A. Management Organization Charts

MANAGERS
Agcaoili
Navarro

MARKETING ADVERTISING LOGISTICS ACCOUNTANT

DIRECTOR DIRECTOR OFFICER
Santos
Simplina Maningas Tajon

Each member of the group was assigned a specific task to look into or manage
during the business implementation. With these tasks being distributed based on
specialties, it is assumed that the business will go on smoothly. Agcaoili and Navarro
were the managers of the group, Maningas was the advertising director, Simplina was
the marketing director, Santos was the financial director/accountant, and Tajon was
the logistics director. During the business implementation, the tasks given to each
were not really done only by that person but by almost everyone. Everyone’s opinions
were always asked before proceeding to another step or process for a more productive
and better way of managing the business.
Managing the group by Navarro was really seen. She made sure that the
supplies for the group are ready for the next day of selling, together with Tajon.
Agcaoili’s initiative in deciding which product to sell was present throughout the
implementation of the business. He and Maningas were very effective in selling the
products to Grade 7 students. Maningas was able to advertise the group in different
social media, especially on Twitter. Santos kept the money we gained and Simplina
kept in mind to make the prices of the products to be “student-friendly” and at the
same time, the group will gain enough profit.
During the production process, each member was assigned a day to feed and
water the chickens and clean their cage. Santos was assigned on Mondays, Maningas
on Tuesdays, Simplina on Wednesdays, Navarro on Thursdays, Tajon on Fridays, and
Agcaoili during weekends for he stays in the dorm during weekends except when
everyone’s required to go home.

B. Staffing Operations
Tasks and jobs were distributed equally during the business implementation.
This is to ensure success, efficiency, and optimum utilization of available resources in

13
the activity. Everyone got to work wherever they wanted and was motivated after a
successful first try. Teamwork was executed in every food we prepare. An example
was our bestseller chicken fingers. Tajon and Maningas coated the marinated chicken
with flour, Santos and Navarro covered the flour with egg, and Simplina, Navarro,
and Santos final coated the chicken with bread crumbs. Agcaoili prepared and cooked
the rice, while Maningas deep-fried the fully coated chicken fingers. Despite having
no experiences, the group did well and was able to gain profit. Everyone got the
chance to fry because of the diverse food products the group was selling. Advertising
skills of Maningas paved the way for the group to be able to sell the products in a
short period of time.
The production process was very efficient because everyone was just assigned
on a day to take care of the chickens. The task was equally assigned and should be
done when it’s one’s turn. Because of this assigned task each day, there’ll be no need
to worry whether the chickens were already fed because it’s the assigned person’s
problem. No member will be telling another one that a member hasn’t gone to the
coop to even check the chickens.

VI. Financial Projections

A. Key Assumptions
Since our food products are commonly sold in stores and students have limited
options on what to buy in our canteen, we assumed that our products would be sold
out when we sell these food products to the consumers. We also assumed that the
experience in preparing and selling the products would be an advantage for us since
we could develop social skills and forming bonds with groupmates. Additionally, we
assumed that the income we would incur would return the amount that we invested on
this activity.
The group assumed that we will not incur enough income to repay our initial
investment in taking care of the chicken. This is due to the lack of potential buyers if
chickens in the area. Some of the chicks were also killed by neighboring cats so there
would be less chicks to grow.

B. Profit and Loss Accounts

Profit

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 Item Qty Price Total
Chicken Fingers (solo) 50 ₱50 ₱2500
Chicken Fingers (w/ rice) 25 ₱70 ₱1750
Kikiam 55 ₱20 ₱1100
Hash brown 14 ₱55 ₱770
French fries 40 ₱35 ₱1400
TOTA ₱7520
L
This table shows how many products we sold and how much we got from
selling the products. We incurred ₱7520 excluding the costs we used.

Computation of Return of Investment - Business

Cost Income Profit
₱5022 ₱7520 ₱2498
Student’s share ₱416.3
3
Profit
ROI= X 100
Investment
ROI
Profit ₱2498
Investment ₱5220
47.85%
Return of Investment measures how much we got from our first investments
by dividing our profit over the amount of our capital. We got 47.85% percent ROI,
which is a relatively high percentage considering that companies get 30% ROI or
even less.

Computation of Return of Investment - Production

Cost Income Profit
₱3540 ₱2000 ₱-1540
Profit
ROI= X 100
Investment
ROI
Profit ₱-1540
Investment ₱3540
-43.5%
It was given that we would not incur enough income to return our investment
and the computation of the ROI shows the same result. We got a negative 43.5% ROI
since we did not sell the chickens at a high price enough to return our capital.

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 C. Balance Sheets
Capital
Capital Amount Quantity
Student's share ₱280 6 ₱1680
Feeds ₱340 6 ₱2040
Chicken ₱250 6 ₱1500
TOTAL ₱5220
Initially, the six of us gave ₱280 as a contribution to the first share.
Beforehand, we already shared ₱340 for the corn grains and gave ₱250 as a payment
for the chickens we bought.

Cost of Items
Item Quantity Price Total
Chicken 1 whole ₱250 ₱250
Chicken Breasts 5 kgs ₱190 ₱950
Calamansi 1 kg ₱95 ₱95
Breadcrumbs 4 packs ₱35 ₱140
Fish Sauce 1 sachet ₱15 ₱15
Eggs 1 tray ₱200 ₱200
Eggs 1 dozen ₱90 ₱90
Flour 800 g ₱100 ₱100
Cooking oil 6 liters ₱173.33 ₱520
Mayonnaise 2 packs ₱80 ₱160
Ketchup 4 packs ₱15 ₱60
Salt 1 pack ₱102.5 ₱102
Hotdog tray 2 packs ₱25 ₱50
French fries 3 kgs ₱120 ₱360
Fishball 2 kilos ₱60 ₱120
Kikiam 7 packs ₱25 ₱175
Sugar 1/4 kilo ₱14 ₱14
Soy sauce 1 sachet ₱44 ₱44
Garlic 1/2 kg ₱50 ₱50
Knorr cubes 1 cube ₱57 ₱57
Glutinous Rice 1/2 kilo ₱65 ₱65
Rice 1/2 kilo ₱35 ₱35
Cups 100 pcs ₱160 ₱160
Spoon 1 pack ₱50 ₱50

Gas 1 tank ₱200 ₱200

(shared)
Labor 20 per day ₱20 ₱960
TOTAL ₱5022

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 D. Cash Flow Projections
This was how we projected how much our products would incur after selling
them.
Item Qty Price Expected amount
Chicken Fingers (solo) 40 ₱50 ₱2000
Chicken Fingers (w/ rice) 20 ₱70 ₱1400
Kikiam 50 ₱20 ₱1000
Hashbrown 10 ₱55 ₱550
French fries 30 ₱35 ₱1050
TOTA ₱6000
L

Capital Amount
Chicken ₱300 ₱1500
TOTAL ₱1500
This table shows the projected income of our chicken production. We assumed
that we can sell five of our chickens for ₱300 each for a total of ₱1500.

VII. Funding Requirements

A. Financing Sources
The financial sources were the members of the group themselves. The
members were the providers of their own capital. For instance, the first product was
the chicken fingers, one member of the group bought the ingredients with her own
money and after selling the product, the money she provided in buying the ingredients
was given back to her.

B. Business Financial Outlook

The business has been projected to boom in such a way that it gives the
members of the group at most 500 pesos each. Although, the business has been
stopped temporarily for one week, it might have exceeded the said denomination to up
to additional 200 pesos each.
There was no shortage or state of bankruptcy experienced by the group
because the prices of the products sold to the public were made sure that it would
exceed the capital invested in it.

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 VIII. Appendices

Figure 1. Member of the Chicken Pits Co. prepping the chicken fingers Figure 2. Member of the Chicken Pits Co. smiling for the camera.

Figure 3. Julia Maningas (rightmost) and Jaiven Tajon (beside Julia) coated the
marinated chicken fingers in flour. Andrea Navarro (wearing green) soaked the flour-
coated chicken in scrambled eggs. Summer Simplina (wearing pink) and RS Santos
(leftmost) coated the prepared chicken fingers in bread crumbs. Figure 4. Julia Maningas holding the marinated chicken fingers

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 Figure 4. Palm oil to be used in frying the chicken fingers Figure 4. Eggs to be used in coating the chicken fingers

Figure 4. Bread crumbs to be used in coating the chicken fingers Figure 4. Preparation on the eggs to be used in coating the chicken fingers

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Figure 11. Inside the chicken coop Figure 12. Eggs lain by one of the hens that
were maintained by Chicken Pits Co.

Figure 13. Chickens (rooster on focus) Figure 14. Chickens roaming about the cage.
proceeding to their usual activities

Figure 15. Hens going on about their daily Figure 16. Right side of the cage (from front
activities view) where some of the nests are located

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Figure 17. Chickens casually standing above Figures 18-20. Two member of Chicken Pits Co. (RS
the cage Santos at the left and RF Agcaoili in the center and
right images) gathering grass for the chickens

Figure 21. RF Agcaoili cleaning Figures 22-23. Andrea Navarro catching the
the water basin chicks to be transferred to another cage.

Figure 24. RF Agcaoili getting rid of garbage in the Figures 25-26. The chicks being
cage transferred to the woven cage

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