Chapter II

Introduction
A. Background of the Study

Since, we all know that fruits contain important vitamins, minerals and
chemicals. They also contain fiber. Fruit can help us to protect against cancer, diabetes
and heart diseases. Fruit are important of healthy eating pattern and the source of any
vital nutrients in our body specially in child and senior citizens that they are prone in
any kind of diseases because most of them are weak in terms of immune system. But
how do we fulfill or get the benefits of fruits if nobody in our area sale a fruits? So that
in Barangay Rebokon Dumalinao Zamboanga del Sur the remedy of this problem is the
“Earthfarm Fruit Stand”.

Earthfarm Fruit Stand is a sole proprietorship kind of business that will soon to
rise in the Municipality of Dumalinao Barangay Rebokon. The owner will manage this
proposed business, aiming to serve primarily the residents of the Barangay Rebokon
and the neighboring Barangay. The costumers will choose their order and to be
entertained by the Earth farm Workers.

B. Objective of the Study

Vision

Fruit Factor is to be a service-oriented provider of high-quality fresh fruits and

vegetables; goods of exceptional quality, with verified food safety, and farmed in
conditions that are kind to people and the environment. We accomplish this by
operating with wisdom, zeal, and dedication.
Mission

Our goal is to trade products that fully satisfy the needs of the period and, as a
result, our vision. Products in which we believe and in which the consumer can have
faith. We will achieve this by strong collaboration with our global suppliers, and we
will meet demand with high-quality products and customer-focused solutions.

C. Scope and Limitations

Table 2. Projected Investment

Particulars Cost
Pre-operating Expense 276,200
Fixed Assets 300 ,000
Working Capital 45,800
Land 78,000
Total Investment 700,000
Limitation: The Store will open from 5am and the time closing is 7pm.
Scope Budget: 700,000.

D. Return on Investment

During the first year of the business (2021), the company will have 20% return on
investment. On the second year (2022), the company will yield 31%. On the third year
(2023), the company will yield 27%. On the fourth year (2024), company will yield 31%.
And on the fifth year (2025), the company will yield 21%.
Table 3. Return on Investment
2
YEAR 2021 2022 023 2024 2025

Net
Income 140,000 217,000 189,000 217,000 147,000

700,000
Investmen
t 700,000 700,000 700,000 700,000 700,000

Percentage 20% 31% 27% 31% 21%

E. Operational Definitions of terms

 Customers- refers to the residents of Rebokon Dumalinao ZDS and

neighboring places, including those passers-by.
 Demand – a customer desire buys our product.
 Fruit Stand – is a small business were people buy a different kind of fruits.
 Sole proprietorship – is a kind of business were as owners have the powered to
operate.
 Business – is an organization or enterprising entity engage in commercial,
industrial and professional activities.

Chapter III
Market Study
A. Geographic Segmentation
Rebokon dumalinao ZDS celebrating their fiesta, high School day,”araw”, birthday,
and Christmas holiday in this time our product will very demand, at first we have no
competence because we are the only fruitstand there in the site aside of the store so that
people will buy our product.
B. Demographic Segmentation
People of Rebokon Dumalinao ZDS are dominated by many religions, but majority
are Christians. The said location is dominated by many tribes. People live in different
socio-economic status. They work as either government or private employees so that
they still afford our offered product.
C. Market Survey findings and interpretation
Through the use of Slovin’s Formula, the proponents were able to get the required
number of respondents. The population size of Barangay Rebokon Dumalinao ZDS, are
3,800

The formula and solution

N
n= 2
1+ N e

Where:

N = population size
n = number of sample needed
e= margin of error

We use 5% for the (e) margin of error.

3,800
= 2
1+ 3,800(0.05)

3,800
=
1+ 3,800(0.0025)

3,800
=
1+ 9.5

3,800 1,650
= 10.5 5.125
¿ ¿
¿ ¿

=362
362 is the sample size of the Barangay Rebokon Dumalinao Zamboanga del Sur.
References:

Table 4: Respondents’ profile in terms of gender.

Gender Respondents Percentage

Female 174 48%

Male 188 52%

Total 362 100%

Table 4 shows that majority of the respondents in Barangay Rebokon Dumalinao

Zambo Sur are male which is 188 or 52% of the total respondents.

Table 5: Respondents’ profile in terms of age.

Age Respondents Percentage

5-10 14 4%

11-20 33 9%

21-30 181 50%

31-59 83 23%

60 and above 51 14%

Total 362 100%

Table 5 shows that majority respondents in Barangay Rebokon Dumalinao Zambo Sur
are 181 or 50% respondents are 21-30 age.

Table 6: Respondents’ response in terms of their preference between fruit stand and
delivered fruit.

Respondents Percentage

Fruit Stand 308 85%

Delivered fruit 54 15%

Total 362 100%

Table 6 shows that all respondents in Barangay Rebokon Dumalinao Zambo Sur usually
buy in fruit stand.

Table 7: Respondents’ response in terms of how much do they spend in every buy
the product.

Category Respondents Percentage

Php10.00 - 50.00 181 50%

Php51.00 - 100.00 91 25%

Php101.00 - 150.00 54 15%

Php151.00 - 200.00 36 10%

Total 362 100%

Table 7 shows that majority of the respondents are 181 or 50% respondents spend
Php10.00 - 50.00 for every buy the product.

Table 8: Respondents’ response in terms of their snack preference.

Respondents Percentage

fruits 253 70%

Junkfoods 109 30%

Total 362 100%

Table 8 shows that majority of the respondents usually fruit during snack time.

Table 9: Respondents ‘response in terms of what fruit they spend much money every
day.

a. Product Respondents Percentage

 Banana 11 3%

 Water melon 23 6%

 Orange 90 25%

 Apple 90 25%

 Mango 22 6%

 Grapes 11 3%

 Durian 11 3%
 Sunkis 14 4%

 Pineapple 11 3%

 grapefruit 11 3%

 guava 18 5%

 Chinese melon 11 3%

 Buko 11 3%

 Mango steen 14 4%

 Strawberry 14 4%

Total 362 100%

Table 9 shows that majority of the respondents spend much money to apple and orange
with the average of 25% or 90 every day.

Table 10: Respondents’ response in terms of how much kilos they buy every day.

Respondents Percentage Table

10
1-5 kl 217 60%

6-10 kl 80 22%

20 or more 65 18%

Total 362 100%

shows that majority of the respondents buy 1-5 kl of fruit between every day.
D. Observational Results

a. Supply Analysis

The following are the place where we buy our fruits.

o Bukidnon
o Cagayan de Oro
o Baguio
o Davao
o Aurora
o Batangas

b. Demand Analysis

Through the survey that we conducted the researchers came up with the favorable
result that out of total population of Barangay Rebokon 362 person will be our
respondents which is equivalent of 20% of the general population in said Barangay.

The researcher will use an Descriptive Survey because it indicates facts that well
serve as an information process or a guide in the study. Descriptive Research Design
will be use in this study because we are tasked to make a business which is Earthfarm
Fruitstand. In this regard we conducted a survey through giving questioners to the
respondents of Barangay Rebokon Dumalinao Zambo Sur in order to determine the
demand of the product.

Therefore, researcher came up the result that out of the total population of the said
Barangay which are 3,800. The researchers used the Solvin’s Formula to randomly get
the sample size of 362. So that base on the survey 9.5% of the total population in
Barangay Rebokon Dumalinao Zamboanga del Sur will buy to our fruit stand business.

E. Production and Sales Forecast

Table 11: Production and Sales Forecast

Earth Farm Fruit Stand
Year Number of Total sales Cost of sales Gross
Production Income
2021 100,464 829,088 575,994 253,094

2022 287,040 2,789,300 2,021,932 766,828

2023 294,424 2,425,748 1,685,996 739,752

2024 303,628 2,507,024 1,741,522 765,542

2025 313,132 2,588,428 1,797,296 791,132

F.4 p's of Marketing

Earth Farm Fruit Stand offer the following fresh fruits:

a. Product

Durian Chinese Melon

Strawberry Guava

Grapes Grapefruit

Mango Orange
sunkist Pineapple

Apple Buko

b. Price Melon Mangosteen

The researchers used the cost-based pricing which ascertains that their product will
make a profit on. To earn profit from the business, the business operations they will be
adding mark up from the cost of the product.
Table 12: Sample Pricing with Markup

For the method, the researcher’s used the cost based pricing to ensure that the
business will gain profit from its operation. The following aims the computation of the
Mark Up rate.
Product Cost of the Markup Selling price
product

 Banana  Php. 5 per kl 200%  Php. 15 per kl Banana

Banana

 Water melon  Php. 15 per kl 100%  Php. 30 per kl Water

Water melon melon

 Orange  Php. 5 each 100%  Php. 10 each Orange

Orange

 Apple  Php.5each 100%  Php. 10 each Apple

Apple

 Mango Php. 35 per kl 71.42%  Php. 60 per kl Mango

Mango

 Grapes Php. 180per kl 66.66%  Php. 300 per kl

Grapes Grapes

 Durian  Php. 100each 100%  Php. 150 to 200 each

Durian Durian

 Sunkis Php. 5each 100%  Php. 10 each Sunkis

Sunkis

 Pineapple  Php. 25per kl 100%  Php. 50 per kl

Pineapple Pineapple

 Grapefruit  Php. 5 each 300%  Php. 20 each

grapefruit grapefruit

 Guava  Php. 10 per kl 150%  Php. 25 per kl guava

guava
 Chinese melon  Php 18 per kl 66.66%  Php 30 per kl Chinese
Chinese melon
melon
 Buko  Php. 6 each 150%  Php. 15 each Buko
Buko
 Mango stain  Php. 100 per 100%  Php. 200 per kl Mango
kl Mango stain
stain
 Strawberry  Php. 180 per 66.66%  Php. 300 per kl
kl Strawberry Strawberry

c. Place

The proposed business will be soon to rise in Barangay Rebokon Dumalinao

Zamboanga del Sur. This is the ideal site were we will build our business base on our
feasibility study because this is the biggest Barangay in the Municipality of Dumalinao
and there is no other fruit stand business in this area. The word “Earthfarm” symbolize
food which is very essential of every one both human and animals. And “fruitstand”
means different kind of fruits, so that for the whole meaning of “Earthfarm Fruitstand”
is a different fruit food.

d. Promotions

Table 13: Breakdown of Ads

Information of the 900.00
Tarpaulins
business is indicating in
the tarpaulins.
Information of the
Social Media 1,000.00
business and delectable
fruits will be
exposed/publicized on
the social media like
Facebook, Instagram or
Twitter.
Fb page boosting
1000 = 5 days
Reached 825 – 2.4k
 Radio For the purpose to spread
broadcasting 1,000.00
the information of my
product in a remote area
were technology is not
rampant through this
strategies we have an
unlimited costumers.

Figure 1: SWOT Analysis

Strength Weakness
 Vehicular Noise
 The newest and the only one
 Air pollution caused by
fruit stand in town
passing vehicles.
 Fresh and affordable
 The business is Located directly
to the public road.  Sudden power interruption.
 The interior of the business
establishment is very
comfortable for the customers.

Opportunities Threats

 The staff are very professional  Future competitors in the area.

in their craft.  Inflation of raw supplies in the
 Products are affordable to the market.
public.
 Feedbacks from our customers
for future growth of the
fruitstand.

 Backup power
 Activities in the said location.