A FEASIBILITY STUDY ON POMELO JAM PRODUCTION

LYKA T. BORRERO
GAY MARIE P. CANUMAY
DENISSE KYRA R. ESCARTIN
LADY ANGEL C. GAPOY
PRINCESS ALMIRA P. MAYO

AN UNDERGRADUATE FEASIBILITY STUDY SUBMITTED TO THE FACULTY

OF THE COLLEGE OF BUSINESS AND ACCOUNTANCY, SOUTHERN
CHRISTIAN COLLEGE, MIDSAYAP, COTABATO, IN PARTIAL
FULFILLMENT OF THE REQUIREMENTS
FOR THE DEGREE

BACHELOR OF SCIENCE IN ACCOUNTANCY

JUNE 2024
PROJECT SUMMARY

This section provides a summary of the overall content of the study. This

comprises the name, description, and location of the business, mode of financing, and

highlight of the major assumptions. Added to that are the industry analysis, competitor

analysis, customer analysis, market study analysis, technical study analysis, management

study analysis, financial study analysis, and socio-economic study analysis.

Name of the Business

Pomelo Jam Manufacturing is the business name that combines the freshness and

vitality of the pomelo fruit with the concept of producing delicious and spreadable

products. The “pomelo” evokes the image of a large citrus fruit known for its sweet and

tangy flavor, suggesting that the business uses natural ingredients to create high-quality

spreads. The term “jam” is a sweet spread made from fruit that implies a range of

versatile products that can be enjoyed on various food items, such as bread, crackers, or

pastries. Incorporating “manufacturing” into the name indicates that the business is

dedicated to producing these spreads on a larger scale using machinery, labor, and raw

materials. The name “pomelo spread manufacturing” was chosen to convey the focus on

producing and manufacturing spreads made from pomelo fruit, capturing the essence of

the business and appealing to customers who appreciate natural and flavorful food

products. The business will be represented by the logo of the business that portrays its

products.
Description of the Business

Pomelo Jam Manufacturing is considered to be under the food processing

industry. This will adopt a sole proprietorship type of business where the owner himself

will manage the business. The business offers a more refined texture of pomelo jam in a

380g bottled jar. It will be distributed to registered bakeries and grocery stores located in

Poblacion 1 to Poblacion 8 in Midsayap, Cotabato. The product will be distributed

through personal selling and will be delivered on a free delivery basis.

Location of the Business

Pomelo Jam Manufacturing will rent a space located at First Floor-Duga Building,

Poblacion 3, Midsayap, Cotabato. The location is near in the Birthing Home, Poblacion 3,

Midsayap, Cotabato (Appendix A). This location is advantageous due to its strategic

proximity to the central market of Midsayap, facilitating easy access to raw materials

such as pomelo and enhancing overall convenience for procurement and production

processes. Additionally, the location is convenient to its target market.

Mode of Financing

The mode of financing for Pomelo Jam Manufacturing will predominantly be

sourced from the savings of the owner. With a start-up capital of ₱250,000, this amount

will be utilized to cover various essential expenses, Firstly, a portion will be allocated

toward acquiring necessary equipment and tools. Additionally, funds will be designated

for purchasing furniture and fixtures, as well as procuring supplies and raw materials. A
significant amount will also be dedicated to hiring labor and securing rentals. Any

remaining funds will be utilized to cover miscellaneous expenses that may arise

throughout the business operations.

Highlights of the Major Assumptions

The following major assumptions are used to analyze the feasibility of pomelo

jam production. This includes the following:

1. The tools and equipment, and furniture and fixtures have a useful life of 5-15

years. The straight-line method will be used in computing the depreciation.

2. The projected average inflation for 2023 is expected to be 5.6%, with forecasts

indicating averages of 3.3% for 2024 and 3.4% for 2025 (BSP, 2023). This

inflation rate will serve as the foundation for calculating the cost of raw materials

for the next 5 years.

3. The owner will withdraw ₱50,000 every year.

4. There will be no ending inventory at the end of the year.

Industry Analysis

An industry analysis is a marketing technique that offers data on the market

potential for the goods and services offered by your business (University of British

Columbia, n.d.). The business utilized the PESTLE model in analyzing the industry

where it belongs. The social factor is the strength of the business because of the health

benefits it offers to the customers in Midsayap, especially to those who seek tasty spread

but are health conscious. On the other hand, the identified weakness of the business is its
economic factor because of the economic fluctuations that affect the price of the raw

materials of the product which are the pomelo fruit and sugar. To overcome this

weakness, the business will explore opportunities for bulk purchasing, bargain for lower

pricing with suppliers cut off unnecessary expenses, and look for options that offer

competitive prices while maintaining the quality of the product that the business will be

producing. The business will also offer a free delivery service to the customers to provide

added value that they are willing to pay and an experience that the competitors cannot

match.

Competitor Analysis

The Pomelo Jam Manufacturing conducted a competitor analysis for pomelo jam,

using benchmarking methodologies with a particular focus on the business practices of

the Cotabato Mango Producers Cooperative owned by Herman Collado. Through this

benchmarking process, key aspects of the cooperative’s operations, such as the

production process, product quality, and service delivery, were examined. The analysis

revealed insights into the cooperative’s strategies, allowing the business to improve its

approach to ensure competitiveness in the market. The upcoming implementation of these

findings is expected to enhance the business’ pomelo jam production, emphasizing

freshness and aligning quality with the designated price point. The business is prepared to

prioritize customer satisfaction through a strategic focus on both culinary offerings and

service provisions, with consideration of helpful ingredients, especially the pomelo, as a

core element of pomelo jam. This competitor analysis positions the business to strengthen

its market position and better meet the preferences of its target market.
Customer Analysis

The business used the 3Ws and 1H method in analyzing the customers. The target

customers are registered bakeries and grocery stores in Poblacion 1 to 8 of Midsayap. Out

of 49 respondents, 36.73% expressed willingness to buy pomelo jam if it is available in

the market. Based on the 36.73% willingness, there would be a total demand in a year of

3,048 jars of pomelo jam. There would be a total demand of 65 cups that the registered

bakeries and grocery stores in Poblacion 1 to 8 of Midsayap will buy in a week. The

business can satisfy a total demand of 3,120 jars of pomelo jam.

Market Study Analysis

The market study of the business is feasible. There is a substantial unsatisfied

demand for the product in the market, indicating a favorable opportunity for the business.

The use of a cost-plus pricing strategy ensures a reasonable and beneficial pricing

structure. Moreover, the business has implemented effective promotional and product

strategies to connect with customers and enhance visibility among the target market. This

approach enhances the feasibility of Pomelo Jam Manufacturing in meeting market

demand and building a strong customer base.

Technical Study Analysis

The technical study reveals its feasibility. Raw materials, including pomelos,

sugar, and other ingredients are readily available. Essential equipment and machinery for
jam production are also easily obtainable. The production schedule can be efficiently

managed, and the overall technical aspects of the venture seem feasible. Also, the proper

waste disposal for the Pomelo Jam Manufacturing process is practicable. With the

necessary resources in place, the technical viability of establishing a pomelo jam business

appears favorable.

Management Study Analysis

The business is feasible under the management study. The business will be a sole

proprietorship for its straightforward decision-making and direct control, ensuring swift

and efficient management of the business. The management structure is characterized by

a flat organization, ensuring a streamlined efficient decision-making process. This fosters

direct communication and quick response times, contributing to the overall agility and

feasibility of the business. The established qualifications are achievable, ensuring

practical and accessible standards for the management of the business. The project

schedule indicates a well-thought-out plan, considering the sequential tasks involved in

pomelo jam production making it attainable.

Financial Study Analysis

Socio-economic Study Analysis

The socio-economic study of the business is feasible. The impact of pomelo jam

production is important, contributing positively to the government. Firstly, the

establishment of pomelo jam production creates valuable livelihood opportunities within

the local community of Poblacion 1 to 8 in Midsayap. The production and sale of pomelo
jam contribute to the country’s economy in its developmental project by paying business

taxes and permits.

THE PROBLEM AND ITS SETTINGS

Introduction

Pomelo jam is a sweet spread that has a perfectly balanced sweetness that may be

used as a topping for bread, toast, or pastries. It can also be a delightful addition to tea

where you can add a spoonful of pomelo jam for a sweet and citrusy flavor. Its main

benefits lie in its rich vitamin and antioxidant content, making it a healthier alternative to

traditional ones. Marketing strategies for pomelo jam typically involve strategic

partnerships with bakeries and grocery stores, where it can be prominently displayed and

easily accessible to customers. The registered bakeries and grocery stores in Poblacion 1

to 8 are the target market of this proposed business.

The market for fruit jam, jelly, and preserves is growing, driven by evolving

consumer preferences, culinary trends, and interest in organic products. According to

Verified Market Research (2021), the demand for natural and nutritious spreads is on the

rise. Moreover, the Food Spread Market size was valued at USD 27.5 Billion in 2020 and

is projected to reach USD 39.5 Billion by 2028, growing at a CAGR of 4.10% from 2021

to 2028. According to Tridge (2022), France is the leading exporter of pomelo jam, with a

significant share of 19.36%. The United States is the top importer, with a share of 6.99%.

This global demand for pomelo jam suggests its appeal in various culinary creations. Goh

(2015) outlines a recipe for pomelo jam, he recommends the use of pomelo jam as a

bread spread and as an ingredient, dilute with water and become a refreshing drink, and
as an ingredient for enhancing the flavors of baked goods, including cupcakes and chiffon

cakes.

In the context of the growing global demand for fruit spread it is interesting to

note that while pomelo jam enjoys popularity in certain culinary markets, such as France

and the United States, its presence in the Philippines appears to be no availability of

pomelo jam or if there is, only limited are available in the Philippines since some are

made only for household consumption, but pomelo jam is part of a fruit jam since jam is

made from fruit and sugar. Fruit jam is commonly used in many countries for various

purposes. In other countries, fruit jam is similarly used as a spread for bread and pastries.

In the Philippines, it is used as a sweet spread for bread, pastries, and desserts.

Philippines has exported $24.2M in jams, making it the 33 rd largest exporter of jams in

the world and was the 231st most exported product in Philippines and imported $7.99M,

becoming the 69th largest importer of jams in the world and was the 741 st most imported

product in the Philippines in 2021 (Observatory of Economic Complexity, 2021).

About the supply and demand of the product, the proponents address a significant

gap in the availability of pomelo jam in the local market. In local areas, the proponents

observed that pomelo jam production is not known in the market. Most people here in

Midsayap usually buy fruit jams such as strawberry jam, mango jam, and pineapple jam

as sandwiches spread, and most of these jams are imported; they are more expensive and

incur additional costs compared to the proponents' locally produced pomelo jam. For that,

the proponents wanted to evaluate the feasibility analysis of pomelo jam in Poblacion 1 to

8 of Midsayap, Cotabato, particularly the registered bakeries and grocery stores.

Statement of the Problem

This study aims to determine the feasibility of the production of pomelo jam in

Poblacion 1 to 8 of Midsayap. Specifically, it seeks to evaluate the study’s market,

technical, management, and financial aspects.

Scope and Limitation of the Study

The study will focus on the feasibility of pomelo jam production. The respondents

for the demand are the registered bakeries and grocery stores in Poblacion 1 to 8,

Midsayap, Cotabato. It will be conducted from September 2023 to December 2023.

Significance of the Study

The study on pomelo jam has potential benefits for the economy and other fields.

The findings from the study may be particularly significant for the following:

Investors. The study is significant for investors because it explores potential

market and consumer demand for this product. This study can provide valuable insights

for investors looking to capitalize on a new and innovative food product.

Local Government Units. The study is significant for the local government unit

as it can contribute to the development and growth of the local economy by creating job

opportunities and increasing revenue through the sale of the product. Additionally, the

production of pomelo jam can also promote local agriculture and showcase the potential

of local produce.

Academe. The study is significant for the academe because it contributes to the

body of knowledge in the field of food science and technology. It provides an opportunity

for academic research, experimentation, and potential collaboration with industry

partners to develop innovative food products using underutilized agricultural resources.

Future Researchers. The study is significant to future researchers as it opens up

avenues for further research on the potential health benefits of consuming pomelo jam.

The study also highlights the potential for sustainable food production by using
agricultural by-products, an area that could be of increased interest to food agricultural

researchers in the future.

Definition of Terms

To assist readers in comprehending the terminologies used the study, the

following terms have been listed and defined. These words are conceptually and

operationally defined:

Customers. It refers to individuals or entities who purchase goods or services in

exchange for payment, and they are a crucial component of any business as they drive

revenue and determine the success of the product. They are the registered bakeries and

grocery stores in Poblacion 1 to 8, Midsayap, Cotabato.

Pomelo. It is a native of Southeast Asia, a natural, and non-hybrid citrus fruit.

This will be used as a raw material in producing the pomelo jam.

Pomelo Jam. It is a bread spread made from the pomelo fruit, known for its sweet

taste and aromatic flavor. It offers a citrusy taste and texture. This is the final product of

the business.

Production. It refers to the process of manufacturing or creating goods. In the

context of pomelo jam, production involves the transformation of pomelo into jam.
RESEARCH METHODS

This chapter discusses the research design, research locale, research respondents,

sampling technique, research instrument, and data-gathering procedures. It also includes

discussions on statistical tool, forecasting tool, industry analysis tool, competitor analysis

tool, and customer analysis tool to be used in this study. The feasibility aspects and

ethical considerations are also presented.

Research Design

This study will use a descriptive quantitative method. The descriptive quantitative

method is a type of research that gathers quantifiable data to statistically analyze a

population sample and uses surveys, polls, and experiments to find data which can then

be used to highlight patterns, linkages, and trends through time (Dovetail Editorial Team,

2023). The descriptive quantitative method is suitable for this study because it allows the

researchers to gather numerical data and analyze it to identify patterns and trends within

the potential market. By organizing this data, the researchers can draw conclusions and

make informed decisions for the pomelo jam production.

Research Locale

The study will be conducted in Poblacion 1 to 8 of Midsayap, Cotabato. This

locale was chosen for it has numerous sources of pomelo as the raw material of this

study.
This choice ensures that the availability and quality of pomelos required for pomelo jam

production are abundant. Moreover, conducting the study in this area provides the

researchers with access to the target market because there are a lot of registered bakeries

and grocery stores in Midsayap, which are the target market of the proposed business.

Research Respondents

The respondents for the demand are registered bakeries and grocery stores located

in Poblacion 1 to 8 of Midsayap. These respondents are chosen since they fulfill certain

criteria which make them suitable for the study. These criteria include having an existing

customer base, familiarity with using fruit-based ingredients in their products, and the

potential to incorporate jam into their bakery offerings. There are currently no producers

of pomelo jam in Midsayap. As such, there would be no respondents for the supply of

pomelo jam production.

Sampling Technique

This study will utilize complete enumeration as a sampling technique. Complete

enumeration involves gathering data from the entire population of interest rather than

selecting a sample (Australian Bureau of Statistics, 2023). It is appropriate when the

population under study is small, well-defined, and easily accessible, and when it is

necessary to gather data from each and every item in the population. This technique is

appropriate for the study for it ensures that every member of the population is included in

the study, allowing for accurate and representative results. By surveying all registered
bakeries and grocery stores, the researchers can obtain a comprehensive understanding of

the existing demand for pomelo jam in the area.

Research Instrument

In order to gather the necessary data for this study, a researcher-made

questionnaire will be utilized. A questionnaire for demand will be designed that consists

of three parts (Appendix B). The first part aims to gather the demographic profile of the

respondents, including information such as the location of their business and the type of

retail business they operated, which in this case are registered bakeries and grocery

stores. The second part of the questionnaire will be focused on historical data, aiming to

capture the business’ historical data for demand or past purchases of fruit jam. Lastly, the

third part of the questionnaire will ask the respondents’ willingness to purchase the

pomelo jam. By using this researcher-made questionnaire, valuable data will be gathered

to assess the feasibility of introducing pomelo jam into the market, taking into

consideration the specific needs and preferences of registered bakeries and grocery stores.

Data Gathering Procedures

With the goal to examine the feasibility of the proposed business, data gathering

procedures will help acquire information on the demand of pomelo jam in Poblacion 1 to

Poblacion 8 Midsayap, Cotabato. Initially, a letter will be submitted to the mayor of the

municipality of Midsayap requesting approval to conduct the study (Appendix C).

Secondly, the letter of approval to conduct the study together with the letter

requesting a list of registered bakeries and grocery stores in Poblacion 1 to Poblacion 8

Midsayap, Cotabato (Appendix D) will be sent. The respondents will receive

questionnaires along with informed consent forms, which will all be collected and

analyzed (Appendix E).

Statistical Tool

The statistical tool that will be utilized in this study is the frequency distribution

statistical tool. A frequency distribution illustrates how many instances are associated

with each potential value of a variable. These distributions can be represented through

both graphs and tables showing the frequencies (Turney, 2023). It helps to summarize and

analyze large amounts of data by displaying the distribution of values and their

frequencies (MasterClass, 2022). The frequency distribution tool is essential for

systematically analyzing the recurring demand for locally made pomelo jam in Poblacion

1 to 8, Midsayap, Cotabato, among registered bakeries and grocery stores. It offers a

clear, visual representation of the data.

Forecasting Tool

This study will use an arithmetic straight-line forecasting method as the

forecasting tool to analyze historical data and make projections on the demand for

pomelo jam. The straight-line method is one of the simplest and easy-to-follow

forecasting methods that uses historical figures and trends to predict future revenue

growth (Schmidt, 2022). This is appropriate to use in the study when the demand for the

locally produced pomelo jam is showing an increasing trend.

Industry Analysis Tool

The political, economic, social, technological, legal, and environmental

(PESTLE) analysis will be utilized in this study. PESTLE analysis is s strategic

framework that helps organizations analyze and understand the external factors that can

impact their business. It examines the political, economic, sociocultural, technological,

legal, and environmental factors that can influence an organization’s operations, and

decision-making (Oxford College of Marketing, 2016). The identified strength of the

pomelo jam business is social particularly the health benefits, and its potential weakness

is in its economic factor which is the inflation rate.

Competitors Analysis Tool

In analyzing business competitors, the study will use benchmarking analysis. It is

the process of comparing products to businesses that operate similarly and are well-

known in their field (Stapenhurst, 2009). This analysis will be used in the study to

benchmark the process, packaging, and quality of the product in Cotabato Mango

Producers Coop.

Customers Analysis Tool

The proposed business’ customers will be analyzed utilizing the 5Ws and 1H

model. Only the 3Ws and 1H−who, what, where, and how−will be utilized in this study.

These inquiries will determine the address of the business, its type, and how many jars of

jam they are planning to buy will also be inquired. This approach will aid in the

comprehension and analysis of consumer purchasing behavior.

Feasibility Aspects

Market Aspect

The product description, demand and supply situations, demand and supply

analysis are covered in this section. The market share, price study, marketing program,

and conclusion will also be included. The marketability of the proposed business will be

assessed in this aspect.

Technical Study

The technical study will be discussed in this part of the study. It will include the

product description, production process, production capacity, and production schedule.

Also, the machinery, equipment, tools, furniture and fixtures, and supplies are presented

in this aspect. It will also contain the requirement for raw materials, direct labor and

utilities, overhead, wastes disposal system, and conclusion will be included.

Management Study

The form of business organization that will be beneficial in properly operating the

business will be determined in this section. It will also consist of the organizational

structure, staffing requirements, compensation and benefits, project schedule, and

conclusion.

Financial Study

The total project cost, projected statement of financial position, and projected

statement of comprehensive income are all included in this section. It also contains a
projected statement of changes in owner’s equity, and a projected statement of cash

flows. Also included are financial analysis ratio, payback period, and conclusion.

Socio-economic Study

The benefits and contributions that this study can offer will be covered in this

section. This covers the contributions that come from the government and other

socioeconomic sources, and conclusion.

Ethical Consideration

In the conduct of the study, the Data Privacy Act of 2012 will be observed to

protect the privacy of the respondents. Informed consent forms will be given to the

respondents before the conduct of the study. The proponents will secure the

confidentiality of the respondents by not disclosing it to other people without their

consent. The data that will be collected from the survey questionnaires will be submitted

to the research center for safekeeping and will be shredded after five years.
MARKET STUDY

The product description, demand and supply situations, demand and supply

analysis are covered in this section. The market share, price study, marketing program,

and conclusion will also be included. The marketability of the proposed business will be

assessed in this section.

Product Description

Pomelo Jam Manufacturing is a delightful addition to the extensive range of

products in the food industry. Complementary goods are products that are often

consumed or used together, enhancing the overall experience for the consumer

(StudySmarter, n.d.). It is considered a complementary good for it is often consumed with

other food items such as bread. The demand elasticity for this product is generally found

to be elastic, meaning that changes in price have a significant impact on the quantity

demanded. Jam exhibits elastic demand, signifying that a 1% price hike would result in a

1.32% reduction in jam quantity demanded. Additionally, the influence of other fruit

spreads, particularly preserves, with a positive cross-price elasticity of 0.32, suggesting

their role as substitutes for jam. This underscores the sensitivity of fruit spread demand to

price fluctuations, indicating consumer tendencies to switch between various types based

on relative prices (Kuchler & Golan, 1999). It is very responsive to changes in the price,

so a change in the price of the pomelo jam will result in a change in its demand. Pomelo

jam is under polistic competition that is a differentiated product that has many close

substitutes, such as other types of fruit spreads, and faces a downward-sloping demand

curve. Moreover, the barriers to entry and exit in the pomelo jam industry are low,
meaning that new firms can easily enter or exit the market depending on the profitability

of the industry. These characteristics match the assumptions of the model of monopolistic

competition (OpenStax, n.d.).

Demand Situation

The target market of the study are the registered bakeries and grocery stores. The

respondents in the study were selected using a complete enumeration technique,

obtaining data from registered bakeries and grocery stores in Poblacion 1 to Poblacion 8

of Midsayap, Cotabato. This method involved surveying all available entities using a

listed sample. The arithmetic straight-line method was applied to project demand based

on historical data, specifically utilizing the sales of 380 grams per jar of pomelo jam from

2018 to 2022.

Table 1 shows that out of the 49 respondents, 36.73% expressed a willingness to

purchase from a local producer (Appendix G). Additionally, the survey revealed that only

10 respondents engaged in reselling. The historical data from 2018 to 2022 indicated a

total of 330 units sold, with a projected monthly demand of 254 units based on the

arithmetic straight-line method (Appendix H).

Table 1. Projected demand for Pomelo Jam (in jars).

Year Projected Demand

2024 6,378
2025 9,473
2026 12,568
2027 15,663
2028 18,758
Supply Situation

In the town of Midsayap, there is currently no supply of pomelo jam due to the

absence of producers specializing in this particular product. As a result, there is no direct

competition for pomelo jam in the local market. With no existing producers in the area,

any potential consumer looking to purchase pomelo jam will be directed to the business

that is the first and sole producer of this product in Midsayap. This means that the

business has the advantage of being the exclusive source for pomelo jam, allowing them

to set their own prices based on their costs and revenues, while taking into account the

market equilibrium price. As the pioneer in producing pomelo jam within the local

market, the business has a potential opportunity to capture the whole market for the

demand and establish itself as the dominant player in the industry.

Demand and Supply Analysis

Demand and supply analysis is a foundational economic principle that evaluates

the interaction between the amount of a product or service desired by consumers

(demand) and the quantity producers are prepared to offer (supply). This examination is

essential in understanding market dynamics and assessing the viability of a business

(Infiniti Research, 2019).

Table 2 presents the projected demand and supply gap for pomelo jam from 2024

to 2028. Notably, the unsatisfied demand equals the projected demand, given the absence

of an existing pomelo jam supplier in the designated scope. This absence of supply
creates a promising opportunity for the business to enter the market and fulfill the unmet

demand for pomelo jam.

Table 2. Projected Demand and Supply Gap.

Year Projected Demand Projected Supply Unsatisfied Demand

2024 6,378 - 6,378
2025 9,473 - 9,473
2026 12,568 - 12,568
2027 15,663 - 15,663
2028 18,758 - 18,758

Market Share

Market share represents the percentage of an industry, or a market’s total sales,

that is earned by a particular company over a specified time period (Hayes, 2022). To

determine market share, the annual production will be divided into the projected demand.

Table 3 displays the market share of pomelo jam for the upcoming five-year

period. It reflects the proportion of total demand that the business aims to satisfy. The

market share remains consistent, aligning with the constant annual production and the

overall projected demand for pomelo jam.

Table 3. Annual Market Share.

Year Annual Production Projected Demand Market Share

2024 3,048 6,378 48%
2025 3,048 9,473 32%
2026 3,048 12,568 24%
2027 3,048 15,663 19%
2028 3,048 18,758 16%
Average Market Share 28%
Price Study

Cost-plus pricing strategy is often employed when starting a business with no

direct competitors because it provides a straightforward method for determining the

selling price of a product or service. In the absence of direct market benchmarks, this

approach allows businesses to set prices by adding a markup to the total cost of

production. This helps ensure that all costs, including production, operational, and desired

profit margins are covered. It provides a practical starting point in the absence of

competitive pricing data, offering a more stable foundation for a new business to enter the

market.

Marketing Program

Pomelo Spread Manufacturing is engaged in producing and selling pomelo jam.

In order to help in selling activities, promotional strategy, product strategy, and

distribution strategy are the profitable and convenient ways for the business to reach out

to the public and advertise the product.

Promotional Strategy

Utilizing face-to-face interactions at local markets or events, offering

complimentary tastings, and maintaining a robust social media presence on platforms like

Instagram and Facebook constitute crucial promotional strategies for the success of their

pomelo spread manufacturing. Utilizing face-to-face interactions at local markets or

events, the business aims to personally connect with potential customers, showcasing the

unique qualities of their pomelo spread and directly addressing inquiries to build trust.

Offering complimentary tastings during these interactions serves as a strategic initiative

to provide a hands-on, sensory introduction to the product, encouraging trial and

establishing a memorable connection between flavor and potential purchase.

Simultaneously, maintaining a robust social media presence on platforms like Instagram

and Facebook is intended to reach a broader audience. The business plans to utilize these

online platforms to share visually appealing content, including customer testimonials and

creative recipe ideas, fostering engagement and enhancing brand awareness. Consistent

and strategic posting on social media will be employed to stay top-of-mind for potential

buyers, contributing to long-term brand loyalty. The integration of these specific

strategies ensures a comprehensive and effective promotional campaign for their pomelo

spread.

Product Strategy

According to the Product Plan (2020), a product strategy outlines a business’

goals for its product and how it intends to achieve them. In line with this, the business’

product strategy for pomelo jam includes the practice of cooking it fresh. This ensures

that the jam tastes better when served and delivered to the buyers. Additionally, the

business incorporates colorful packaging as part of its product strategy. The vibrant and

visually appealing packaging not only grabs customers’ attention but also aligns with the

business’ goal of providing an enjoyable and visually appealing product experience.

Distribution Strategy

The business will imply direct distribution to its customers. Direct distribution is

the process of directly selling pomelo jam to customers in which the product will be

cooked fresh when it is served and delivered. Direct distribution allows the business to

cut out the high markups and expenses related to using middlemen or intermediaries to

distribute the goods, it allows a business to acquire loyal customers, collect valuable

marketing data regarding their customers’ demographics, and buying habits, and to build

connections since there is face-to-face interaction. The Pomelo Jam Manufacturing will

be carried out through a delivery vehicle, ensuring a smooth and efficient process from

the kitchen to the customers’ doorstep. This distribution strategy constitutes a crucial

aspect of the feasibility considerations for the business venture.

Conclusion

The study shows that the market is favorable for the business, which sells pomelo

jam. The business surveyed 49 registered bakeries and grocery stores and found out that

36.73% of them are willing to buy the product, indicating a demand in the market. The

demand and supply analysis reveal that the market has a gap that the business can fill.

The business can satisfy an average of 100% of the total demand, which makes it the

market leader in the Poblacion areas of Midsayap, Cotabato. The pricing strategy is

effective because it reflects the quality of the product and allows the business to compete

fairly. The marketing program is successful in attracting customers.

TECHNICAL STUDY

The technical study encompasses details such as the product description,

production process, production capacity, building structure and production schedule, and

layout. Machinery, equipment, and tools, furniture and fixtures, and supplies are also

presented in this aspect. It also consists of the requirements for raw materials, direct

labor, and utilities and overhead. The waste disposal system and conclusion are also

included in this section.

Product Description

Pomelo Jam Manufacturing presents a delightful creation with a captivating pinkish hue,

resonating with the sun-ripened zest of pomelo fruit. Each 380g jar holds this exquisite

preserve, delivering a taste of nature’s sweetness to discerning palates. The jam’s flavor

is a harmonious blend of sweet and citrus notes, complemented by the refreshing essence

of pomelo. Its subtle yet enticing aroma carries the distinct fragrance of pomelo zest,

enhancing the overall sensory experience.

With a commendable shelf life of one year when refrigerated (six months without

refrigeration), refrigeration is essential to preserve its freshness and quality. The product

is presented in a carefully designed, air-tight plastic jar that preserves intrinsic flavors and

shields against environmental elements.

The physical manifestation of the pomelo jam is characterized by its glossy,

velvety-smooth texture, occasionally punctuated by delightful flecks of pomelo zest,

creating an aesthetically pleasing visual contrast that mirrors its tantalizing flavor profile.

Notably, the inclusion of preservatives enhances shelf life, maintaining exceptional

quality over time. The packaging ensures the preservation of the jam’s appearance, odor,

taste, and texture, providing a delightful and well-rounded sensory experience for

consumers.

Production Process

The production of pomelo jam involves simple but systematic steps to come up

with the ideal outcome. The business involves different stages which will also be

discussed clearly. This production process must be done accordingly. Three workers are

needed for the entire production process and will take approximately 8 hours to complete.

Preparation of raw
materials, cooking utensils, Peeling and Blending
and working area

Simmering and
Packaging and Sealing
Addition of Sugar

Preparation of Raw Materials, Cooking Utensils, and Working Area

Figure 1. Production Process
During this stage of the process, all three workers will prepare 25 pieces of

pomelo fruit meat weighing 25 kilograms for the jam-making process weekly. However,

the production process of pomelo jam will be by batch based on the projected hours to

complete. The production process can utilize 5 kilograms of pomelo fruit (5 pcs). All

workers will be responsible for washing the pomelo fruit to remove any adhering dust

and dirt. The cleaning process involves washing the fruit with water, followed by rinsing

with chlorine water (50 ppm), and a final rinse of water with sodium metabisulfite.

Additionally, the cooking utensils will be thoroughly cleaned and inspected, and the

entire production area will be prepared for the subsequent stages of jam-making. The

overall setup for the preparation of this stage will take approximately 1 hour and 30

minutes.

Peeling and Blending

In this process, the pomelo fruit will be peeled using a knife. Afterwards, the

excess peel of the pomelo fruit will be peeled using hands leaving the edible portion of

the fruit. The weight of the edible portion of 5 pomelo fruits is 4 kilograms. The edible

portion will undergo the pulping process, cut into bits using a chopping board, and will be

washed with water using a stainless strainer to get the excess water. After that, it will be

placed inside the blender until it becomes juicy and smooth weighing only 3.5 kilograms

after blending. There will be two workers involved in the peeling process and only one

worker in the blending process which will take about 1 hour and 30 minutes.
Simmering and Addition of Sugar

After blending, the wok will be placed on the gas stove at a medium-high

temperature. The blended fruit will be poured into a bowl along with two and a half

kilograms of white sugar. The two workers must stir it occasionally using a big ladle,

check if the sugar is dissolved until it turns into a golden-like hue, and wait until the

temperature reaches 106 degrees Celsius, using a thermometer for better consistency.

After that, it is ready to be cooled down. This step will take 15 to 20 minutes.

Packaging and Sealing

Before packing the finished product, it will be cooled down for 2 hours. Once

cooled, it is carefully measured using a 380g clean jar and a measuring cup, ensuring both

good physical appearance and packaging quality. Three workers are involved in this

stage, which takes approximately 2 hours to complete. Subsequently, all workers

participate in the sealing process, ensuring the product’s purity and freshness while

protecting it from the external environment. This sealing step typically takes 45 minutes

to one hour. As a final touch, a sealing sticker is affixed to each jar, and a shrink band is

attached to the cap, enhancing the overall presentation and securing the product for

quality assurance.

Production Capacity

Production capacity, defined as the maximum output achievable based on

equipment and labor resources, guides these operations. The manufacturing capacity for

pomelo jam is determined by the business’ ability to produce up to 280 jars monthly,
totaling 3,360 jars annually (Appendix I). This production capacity is contingent upon the

available equipment and workforce.

Operational activities are planned for 5 days a week, running from Monday to

Thursday, with one worker dedicated to each production process. Friday is designated for

product delivery, the owner will personally undertake the delivery, further optimizing the

overall production schedule.

Table 4 outlines the consistent annual production capacity for the next five years,

reflecting the business’ ability to produce the product daily using the available resources.

Table 4. Production Capacity (in jars).

Year Monthly Annual Production
2025 280 3,360
2026 280 3,360
2027 280 3,048
2028 280 3,048
2029 280 3,048

Production Schedule

Production schedule refers to the systematic plan outlining the activities,

timelines, and resources allocated for the manufacturing process. Pomelo Jam

Manufacturing, situated on the First Floor of Duga Building, Poblacion 3, Midsayap,

Cotabato, will produce 56 jars of pomelo jam weekly, operating Monday to Thursday.

The three workers will each dedicate eight hours per day across the five working days.

Deliveries will take place on Fridays.

Table 5 shows the monthly and annual production of pomelo jam. The production

will start at eight o’clock in the morning and will end at four o’clock in the afternoon.

Table 5. Production Schedule.

Year Monthly Annual Production
2025 224 2,688
2026 224 2,688
2027 224 2,688
2028 224 2,688
2029 224 2,688

Building Structure and Layout

The Pomelo Spread Manufacturing’s layout and building structure considers the

rental space and manufacturing supplies required for production. The measurement of the

building is 12 feet by 12 feet (Appendix M). The building will be situated on the First

Floor of Duga Building, Poblacion 3, Midsayap, Cotabato. It spends ₱15,000 a month on

renting a space to run the business. The estimated cost of renovation will be ₱20,000,

inclusive of compensation for workers and factors such as paint, flooring, and electrical

work.

Machinery, Equipment, and Tools

Machinery, equipment, and tools will be used to make the process easier. The

machines needed will be purchased in Manila through the Lazada app to obtain their

actual price, image, and details. The equipment and tools in business are purchased in the

wholesale market at Midsayap. The delivery vehicle will be acquired in Davao City

which will be used for transporting the finished products to customers.

Table 6 shows the machinery, equipment, and tools needed for business with their

useful lives. The machinery, equipment, and tools will be used in the process of

converting pomelo into an output which is pomelo jam, except for the delivery vehicle

which is needed for delivering the final output to customers.

Table 6. Machinery, Equipment, and Tools

Particular Useful Life Quantity Unit Price Total Cost
Delivery vehicle 10 1 ₱75,000 ₱75,000
Heat Gun Sealer 2 1 800 800
LPG tank 5 1 1,600 1,600
Blender 2 2 1,250 2,500
Weighing Scale 5 1 500 500
Stainless strainer 5 2 200 400
Wok 10 1 600 600
Big ladle 5 2 200 400
Freezer 10 1 14,000 14,000
Gas stove 5 1 1,800 1,800
Total 97,600

Furniture and Fixtures

Pomelo Spread Manufacturing will purchase three tables to provide a clean and

organized workspace for the preparation and packaging of pomelo jam. Three chairs will

be procured to provide a comfortable area for workers during production activities. Two

ceiling fans will be installed to maintain a controlled temperature and ventilation within

the production area, ensuring optimal working conditions for staff. Lastly, two storage

cabinets will be procured to efficiently organize and safeguard essential ingredients and

equipment, promoting a systematic and hygienic storage system for the business.
Table 7 shows the furniture and fixtures needed for business with their useful

lives. It will be purchased before the start of the operation.

Table 7. Furniture and fixtures.

Particular Useful Life Quantity Price Total
Tables 8 years 3 ₱500 ₱1,500
Chairs 10 years 5 200 1,000
Ceiling fans 10 years 2 1,700 3,400
Storage Cabinets 20 years 2 1,000 2,000
(95cm height, 78 cm
width, 41cm depth)
Total ₱7,900

Supplies

The supplies needed by the business are store, office, and cleaning supplies. In

production, the supplies needed in making the different production processes are jars,

sealing stickers, shrink bands, knives, blenders, ladles, measuring cups, bowls, chopping

board, thermometers, chlorine test strips, apron, and hair nets (Appendix J). The office

supplies include paper, receipts, ballpens, notebooks, and a calculator. The dustpan,

garbage bins, garbage bags, and broomsticks are the cleaning supplies needed by Pomelo

Spread Manufacturing. All supplies that are needed will have a total estimated cost of

₱154,684.

Table 8. Store Supplies.

Store Supplies Quantity Unit Price Monthly Yearly
Knives 3 ₱40 ₱120
Chopping board 2 80 160
Ladle 3 60 180
Measuring cups 4 50 200
Bowls 4 100 400
Thermometer 4 35 140
Chlorine test strips 1 bottle 1,858 1,858
Jars 290 40 11,600 139,200
Self-adhesive sealing 3 packs 120 360 4,320
Product label sticker 3 packs 99 297 3,564
Shrink band cap seal 3 bundles 118 354 4, 248
Apron 3 70 210
Hair nets 3 28 84
Total ₱154,684

Table 8 shows the list of store supplies needed in the production process. The

business will purchase the store supplies before the start of the business operation.

Table 9. Office Supplies.

Office Supplies Quantity Unit Price Quarterly Yearly

Paper 12 pads ₱25 ₱300 ₱1,200
Receipts 10 pads 15 150 600
Ballpens 20 pieces 15 300 1,200
Notebooks 12 pieces 15 180 720
Calculator 1 piece 500 500
Total ₱4,220

Table 9 shows the necessary office supplies needed by Pomelo Jam

Manufacturing. The business will purchase the office supplies quarterly except the
calculator.

Table 10. Cleaning Supplies.

Cleaning Supplies Quantity Unit Price Quarterly Yearly
Dustpan 3 ₱70 ₱210
Garbage bins 3 250 750
Garbage bags 3 rolls 60 180 720
Broomsticks 3 100 300
Dishwashing Liquid 5 60 300 1,200
Sponge 5 10 50 200
Liquid chlorine sanitizer 2 gallons 210 420 1,680
Total ₱5,060

Table 10 shows the cleaning supplies needed for the business. Dustpans, garbage

bins, garbage bags, and broomsticks will be purchased by the business annually except

the garbage bags, dishwashing liquid, sponges, and chlorine that will be purchased

quarterly.

Raw Materials Requirements

The municipality of Midsayap will be the source of the raw materials required to

produce the pomelo spread manufacturing. The pomelo fruit, which is the main

component of the pomelo jam will be bought at the local market. The price of raw

materials is predicted to rise in the fourth and fifth years of operation after remaining

stable for the first three years of operation. The company can make 250 jars of pomelo

jam in its first year of operation using 90 pieces of pomelo fruit from each batch.

Table 11 shows the annual cost of the raw materials required to produce pomelo

jam. Since the price of pomelo fruit is rising in the market, the cost of raw materials rises

in the fourth and fifth years of the business operation. The business will buy pomelo fruit

every week, which entails buying raw materials 48 times a year.

Table 11. Raw Materials.

Particulars Quantity Unit Cost Monthly Cost Annual Cost
Fresh Pomelo 25 kg ₱25 ₱2,500 ₱30,000
Sugar 12.5 kg 65 3,250 39,000
Sodium Metabisulfite 1 kg 90 360 4,320
Total ₱77,160

Direct Labor Requirements

The business will hire three workers for the production of pomelo jam. Each

worker will work from Mondays to Fridays. Delivery of the goods will be every Friday,

and each will be compensated ₱350 per day or ₱7,000 per month with an annual salary of

₱84,000. The workers are assigned to do tasks associated with the production of pomelo

jam.

Utilities and Overhead Requirements

The business makes use of water supply for daily operation. Metro Midsayap

Water District (MMWD) was the source of water supply. The water consumption of the

business will pay an estimated projected of ₱2,000 per month. The water from MMWD is

used for washing the equipment, tools, and supplies used for production. A projected cost

of 500 pesos per month will be used to buy purified water from Midsayap refilling station

which will be added to produce pomelo jam. The Cotabato Electric Cooperative

(COTELCO) provides the electricity for the machine to utilize the production process.

The cost of refilling the LPG tank every month is ₱1,400.

Table 12 shows the list of costs for the business’s utilities and overhead. The

overhead and utilities are accounted for as administrative and manufacturing costs. The

administrative fee for the use of water and energy for the office would be 42,000 every

year.
Table 12. Utilities and Overhead Requirements.
Particular Monthly Annual
Water ₱500 ₱6,000
Electricity 3,000 36,000
LPG refill 1,400 16,800
Total ₱3,500 ₱58,800

Waste Disposal

In adherence to municipal ordinances governing waste disposal, Pomelo Jam

Manufacturing will demonstrate a rigorous and responsible approach to managing waste.

It will follow the prescribed waste segregation guidelines, ensuring that recyclables,

organics, and non-recyclables are sorted at the source within the facilities. This process,

deeply rooted in local regulations, is carried out by the staff with a keen sense of

environmental stewardship. The waste collection schedules will be synchronized with

municipal collection days. Non-recyclable waste is disposed of by municipal regulations,

while recyclables are processed through authorized recycling facilities. Organic waste

generated in the production process is channeled into composting, contributing to the

sustainable use of resources. Its commitment to these established waste disposal practices

not only complies with local ordinances but also reflects its dedication to environmental

responsibility in business operations. There is an associated cost for the collection of

waste, which underscores the business’ commitment to not only comply with local

ordinances but also reflect its dedication to environmental responsibility in its business

operations.
Conclusion

Pomelo Jam Manufacturing is not just about crafting a delightful pomelo jam; it’s

a commitment to a sensory experience and responsible business practices. From the

captivating pinkish hue and harmonious blend of sweet and citrus notes to the meticulous

production process involving three dedicated workers, the attention to detail is evident.

The company's production capacity of 280 jars monthly, housed in a carefully designed

space in Midsayap, showcases a thoughtful balance between efficiency and quality. With

a focus on sustainability, waste disposal follows local regulations, reflecting

environmental stewardship. The transparent overview of costs, from rent and machinery

to labor and utilities, underlines the company’s commitment to transparency and

responsible business practices. In every jar of pomelo jam, there’s not just a taste of

nature’s sweetness but a dedication to quality, sustainability, and the local community.
MANAGEMENT STUDY

This section covers the type of business organization and organizational structure.

It further outlines the staffing requirements, compensation and benefits, project schedule,

and conclusion.

Type of Business Organization

The Pomelo Jam Manufacturing is a sole proprietorship. A sole proprietorship is a

business structure in which a single individual owns and operates a business. It is the

simplest and most common form of business ownership, where the owner is personally

responsible for the business’s debts and liabilities (Wolters Kluwer, 2022). This type of

organization aligns with the simplicity and autonomy required in the early stages of the

business. It is fitting for Pomelo Spread Manufacturing, given its simplicity, autonomy,

and suitability for early-stage businesses, enabling streamlined decision-making, direct

owner control, agility in responding to market changes, and manageable responsibility

for debts and liabilities in a smaller-scale operation.

Organizational Structure

The business will use a flat organizational structure. A flat organizational

structure is commonly used by small types of businesses because it does not need to hire

mid-level and low-level managers, so it lowers operational costs. It is also an advantage

in a sole proprietorship type of business because the workers will be more productive

when they are more directly involved in the discussion making process rather than closely

supervised by many layers of management. It is the appropriate organizational structure

because it is composed of few workers. Figure 2 shows the organizational structure that

will be used by Pomelo Spread Manufacturing.

Owner/
Manager/Driver

Worker 1 Worker 2 Worker 3

Figure 2. Organizational Structure

Staffing Requirements

One of the key factors to consider while running a business is staffing. A staff is

a group of persons charged with carrying out the work of an establishment or executing

some undertaking. They are in charge of carrying out all the business transactions. The

owner and workers must fulfill the following qualifications, duties, and obligations. The
workers must possess the following abilities, skills, and experience connected to cooking

operations as well as verifying methods to ensure the food produced is of high quality.

Owner/Manager/Driver

The owner/manager/driver should have a bachelor’s degree in business

administration or any related business courses. He or she must also have the knowledge

and expertise in handling the business, excellent communication and interpersonal

abilities, leadership, and conflict resolution skills. The owner/manager is accountable for

establishing and achieving the business’ goals, keeping track of employee schedules,

managing, disciplining, and training the employees, and ensuring a safe, secure, and legal

work environment for the workers.

Workers

In the process of making pomelo jam, three workers are involved. The fruit

preparation worker peels removes piths and seeds, and cuts the pomelo. The cooking and

mixing worker cooks the prepared fruit with sugar and other ingredients, ensuring the

right consistency and flavors. The packaging, labeling, and delivery worker fills sterilized

jars, seals them, attaches labels with production information, and delivers them. They are

also expected to attend all safety and production pieces of training and according to the

business’ working schedule, they must report every Monday to Friday.

Compensation and Benefits

The business provides compensation and benefits to the workers. The workers

will receive a PhilHealth and SSS benefit paid by the employer which is payable

monthly.

Table 13 shows the total amount of employees’ salaries every month and their

corresponding annual compensation. The PhilHealth and SSS Contribution is also

included to secure the workers’ benefits (Appendix K).

Table 13A. Salary and employee benefits. (PhilHealth)

Designation Monthly Gross PhilHealth PhilHealth Monthly Net
Pay Contribution Contribution Pay
Monthly Monthly
(Employer) (Employee)
Workers (3) ₱21,000 ₱600 ₱600 ₱21,000
Annual Total ₱84,000 ₱7,200 ₱7,200 ₱84,000

Designation Monthly Gross SSS SSS Monthly Net

Pay Contribution Monthly Pay
Monthly (Employee)
(Employer)
Workers (3) ₱1,680 ₱560 ₱560 ₱1,680
Annual Total ₱20,160 ₱6,720 ₱6,720 ₱20,160
Table 13B. Salary and employee benefits. (SSS)
Project Schedule

This section shows the procedures that must be followed before starting the

business operation. The project schedule provided direction in establishing effective

business management. A project schedule was adopted, outlining the business activities

from the first day the project started up to its actual operation.

Figure 3 illustrates the project schedule of the business. The chart shows all the

procedures needed to be accomplished before starting the business operation. These

procedures will start with the processing of permits and licenses from the municipality of

Midsayap, renovating the building, purchasing machinery, equipment, tools, furniture,

and fixtures, hiring and training workers, purchasing raw materials, and lastly opening the

business.

Activity January February March April May

2025 2025 2025 2025 2025
Processing
of permits
and licenses
Renovating
the building
Purchasing
of
machinery,
equipment,
tools,
furniture,
and fixtures
Hiring and
training of
workers
Purchasing
of raw
materials
Start of
operation

Figure 3. Grantt Chart of the Project Schedule.

Conclusion

The management study for Pomelo Spread Manufacturing establishes the business

as a sole proprietorship, chosen for its cost-effectiveness and streamlined management

structure. The adoption of a flat organizational structure is suitable for the business’

simplicity, allowing the owner or manager to retain sole responsibility and control. This

organizational approach facilitates easy monitoring of operations and efficient

supervision of workers. Standard qualifications for staffing ensure the selection of

competent individuals, while the workers’ compensation aligns with the tasks they

undertake. The project schedule is highly attainable, allowing sufficient time for each

activity to meet the given requirements. Overall, the chosen management approach,

combining a sole proprietorship and a flat organizational structure, supports the

feasibility of the business.

SOCIO-ECONOMIC STUDY

The socio-economic analysis aims to assess the business’s impact on government

and socio-economic aspects, examining its benefits and contributions. Additionally, the

study provides a conclusion summarizing these findings.

Government Contributions

The pomelo jam manufacturing business will actively contribute to the

government by ensuring timely payments for permits, licenses, and relevant fees. The

establishment of the pomelo jam manufacturing process will involve strict adherence to

governmental regulations. The business owner is committed to fulfilling all requirements

mandated by the government before commencing operations. Through tax payments, the

business aims to support the government in achieving its developmental and future

projects, including educational initiatives, charitable endeavors, public infrastructure, and

accessible healthcare services. To operate legally, the business will be duly registered

with the local government unit (LGU) through the Food and Drug Administration (FDA)

and the Bureau of Internal Revenue (BIR).

Socio-economic Contributions

The business will have a positive socio-economic impact on specific individuals.

The business will promote a healthy lifestyle for the customers. Beyond its ecological

efforts, the business seeks to address unemployment in the municipality of Midsayap by

providing employment opportunities and giving additional investment for the community.

Conclusion

In conclusion, the Pomelo Spread Manufacturing business is positioned not only

to be a responsible contributor to the government through adherence to regulations,

timely payments, and tax obligations but also to play a significant role in the socio-

economic development of Poblacion 1 to 8 in Midsayap. By prioritizing health-conscious

products and actively addressing unemployment, this aims to create a positive impact on

both the local community and broader societal goals. Through its commitment to legality,

community investment, and health promotion, Pomelo Spread Manufacturing stands as a

commendable example of a venture that strives for holistic contributions to both

governmental and societal well-being.