Production and marketing of cucumber muffin

Abstract

The business will be recognized as MQM’s Cucumber Muffin as its brand name. It is exclusively focusing on the processing and marketing of cucumber muffins. It is an authentic name that is easy to recognize and memorize. MQM’s Cucumber Muffin shall be established in the Municipality of Mambusao. The project site will be at Sta. Catalina Street, Poblacion Proper, Mambusao, Capiz. It is strategically located because it is accessible to all means of land transportation. The target consumers of the business range from 5 years old and above. The projected demand of the product was based on the per capita consumption of the main ingredient taken from the Philippine Statistic Authority (PSA) and the projected supply was based on the magnitude of supply of the direct competitor. MQM will sell its product per piece and accept orders at the same time, and will be sold at a reasonable price. The firm will use tarpaulins and posters to promote the product. The firm will require two (2) individuals who will be responsible for the production and marketing of the product. The raw materials will be acquired from the public market of the Municipality of Mambusao. The firm will have a production of six times a week with the total operation of 288 days in one year. The proponents of the business are all fourth year students from the College of Business Administration of Capiz State University, Burias Campus, Mambusao, Capiz. The required initial investment for the business is Php103, 154.3 which will be divided among the proponents at Php34, 384.77 each. Since the proponents are BSBA graduating students, they are not capable of funding the project so they decide to look for possible sources of funds and submit the completed detailed feasibility study for the funding agency. The net income of the business is Php48, 799.78 for the first year, Php50, 292.10 for the second year, Php53, 455.26for the third year, Ph55, 927.23 for the fourth year, and Php58, 030.98 for the fifth year. Based on the results of the study, it was found out that the project is feasible as proven by the positive result of the return on investment with 45.3% which is favorable in the part of investors, with 1 year and 8 months of payback period, a positive net present value amounting Php53, 955.03 and internal rate of return of 45.31%.