Chapter 1
Project Summary
I. Name of the Business
The project is fittingly named "Dessert Heaven," a name chosen to evoke the
sense of indulgence and delight that the business aims to offer through its signature
product, the mango float. The word "Dessert" was selected to immediately communicate
the nature of the business, making it clear to potential customers that the shop is
dedicated to providing sweet treats. The word "Heaven" was chosen to convey the idea
of an elevated, almost other worldly experience that customers can expect when they
enjoy the mango float from Dessert Heaven. The combination of "Dessert" and "Heaven"
creates an image of a paradise for dessert lovers, where they can indulge in a treat that
is not only delicious but also comforting and satisfying.
II. Description of the Industry
Proponents choose the food industry because it is necessary for people. The
majority of Filipinos enjoy eating dessert which is without a doubt a trend nowadays.
When looking at the food and beverage industry from a foreign side, one of the most
lucrative sectors is desserts. Global analysts project that the dessert market will reach a
valuation of over $100.6 billion by 2023, based on their “Global Dessert Market" analysis.
Additionally, the study anticipated that with a compound annual growth rate of 6% from
2024 to 2030, the worldwide value will reach $150.2 billion by the end of 2030. (Grand
View Research Report, 2023).
Filipinos enjoy desserts that are flavorful, diverse and visually appealing. “You
get used to eating fewer super sweet things, you crave them less. You become more
satisfied with less sweet things “says Dr. Michelle Hauser is an expert in studies on the
Philippines. Not only are sweet snacks definitely indulgent, but you should consume them
in moderation to maintain good health (Hauser et al., 2021).
Desserts have a rich and varied history that spans millennia and reflects the
various cultures and innovations that humanity has to offer. Originating from the French
verb “desservir” the English word “dessert” first appeared in print in the seventeenth
century. Desserts today showcase a fusion of creativity and tradition. Timeless recipes
are treasured. While new trends are shaped by dietary choices and modern procedures.
In summation, the development of desserts from straightforward fruit and honey
concoctions to intricate and artistic works is a monument to human ingenuity and the
pursuit of sweetness (Hauser et al., 2021).
Filipinos love sugar and everything sweet. The Philippines is a sugar-producing
country. Plus, most Filipino desserts either originated from the Spanish colonial tradition
or made from typical natural products of South East-Asia, like rice cakes and coconut
jellies among others, while some are interesting fusions of both. Nowadays you will also
find American influence in the dessert menu: yummy and super-caloric chocolate cakes,
fudge brownies, cookies and so on.
III. Description of the Project
Dessert Heaven will be a dedicated mango float shop that offers a variety of
servings and packaging options to cater to different customer preferences, from
individual portions to family-sized trays. The project will focus on using premium
ingredients to create a mango float that stands out in terms of taste, texture, and
presentation. By maintaining a streamlined menu centered on a single dessert, Dessert
Heaven aims to build a strong brand identity and a loyal customer base. The shop will
also emphasize a welcoming and cozy ambiance, making it a go-to spot for dessert
lovers in the area.
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The proponent planned that this business required a consultation with an expert
since this is a start-up business. The major consumers are kids and adults aged 15 years
old to 64 years old. The primary raw materials required to establish this business are
Ripe Mangoes, Frosty Cream Powder, Nestle All-Purpose Cream, Condense Milk,
Graham Crackers and Crushed Graham.
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IV. Location of the Project
Figure 1
Vicinity Map of Davao del Norte, Philippines
Dessert Heaven will be located in Barangay La Filipina, Tagum City, a strategic
location is known for its vibrant commercial activity and accessibility. Situated near
residential areas, schools, and offices, the shop will benefit from a steady flow of potential
customers throughout the day. Barangay La Filipina is an ideal location for this venture
due to its mix of urban and community-oriented environments, which aligns with Dessert
Heaven's target market. The chosen location is expected to contribute significantly to the
project's success by providing easy access to customers and fostering a strong local
presence.
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Figure 1.1
Vicinity Map of Tagum Davao del Norte, Philippines
Figure 1.1 provides a visual representation of a specific area within Tagum City. It
highlights a few prominent landmarks, likely intended to help orient the viewer within the
city.
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Figure 1.2
Location of the Project
Figure 1.2 provides a visual representation of the location of Dessert Haven.
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V. Highlights of Major Assumptions
The following major assumptions are gathered by the partners throughout the
making of this feasibility study.
Projection of Demand and Supply
The projection of the demand is based on the result of a random survey of the
population for a specific age group. The projection on supply is based on the three existing
competitors interviewed by the proponents.
Table 1
Projected Demand
Year Total Number of Tubs
2025 679,127
2026 698,742
2027 718,924
Presented in Table 1 is the demand for several mango float tubs for the first three
years of the business. The data comes from the 100 respondents of the random survey
of which 61% of them answered they would likely buy the product at an average frequency
of five (5) times per year.
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Table 2
Projected Supply
Year Total Number of Tubs
2025 54,752
2026 66,618
2027 81,056
Moreover, table 2 presents the projected supply of mango float desserts in Tagum
for the first three years of business. This data is based on the information disclosed by
the three existing competitors interviewed by the [Link] average annual
increase in supply is 21.67%
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Table 3
Demand and Supply Analysis of Mango Float (No. of Tubs)
Year Demand Supply Gap
Past
2022 623,523 30,600 592,923
2023 641,533 34,200 607,333
2024 660,062 45,000 615,062
Projected
1 679,127 54,752 624,375
2 698,742 66,618 632,124
3 718,924 81,056 637,868
Summarized in Table 3 is the demand and supply analysis of mango float desserts
in Tagum City. It is found that there is a huge unsatisfied demand, and it continues to
increase annually. It shows the market potential of the proposed business.
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Price Analysis
Table 4
Price of the Product
Description Quantity Price
Mango Float Per Tub ₱100.00
The price of each mango float tub is set at ₱100, covering raw materials and
operating expenses. The proponents assume a 10% annual price increase to account for
rising costs and sustain profitability.
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Projected Sales
Table 5
Projected Sales
Year Quantity (Tubs) Price (Php) Total Sales (Php)
2025 28,080 100.00 2,808,000.00
2026 36,504 110.00 4,015,440.00
2027 47,455 121.00 5,742,055.00
The table above presents a projected sales forecast of mango float measured in
tubs. The forecast spans three years, from 2025-2027. Overall the table indicates a
positive outlook for the Dessert Heaven sales performance in the coming year.
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Total Cost of Investment
The source of capitalization will be the cash contributions of partners in the
business amounting to two hundred twenty thousand pesos (Php 220,000.00). The
breakdown of capital expenditure is presented in Table 6.
Table 6
Total Cost of Investment
Capital Expenditure Estimated Amount
Salaries and Wages ₱ 39,050.00
Fringe Benefits ₱ 4,746.25
Utilities ₱ 2,661.50
Tools and Equipment ₱ 25,640.00
Shop Furniture and Fixtures ₱ 3,500.00
Maintenance and Repairs ₱ 166.67
Store Supplies ₱ 5,150.00
Permit and Licensing ₱ 3,500.00
Prepaid Rent ₱ 3,000.00
Advertising and Promotion ₱ 1,500.00
Working Capital Requirements ₱ 131,085.58
Total ₱ 220,000.00
Listed in the table above are the total cost of investment or the project cost for the
start-up operation of the business. Included in the capital expenditure are the pre-
operating costs, initial fixed investment such as store equipment, furniture and fixtures,
and the first month’s operating expenses.
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Initial Capital
The cost of materials and ingredients in producing the product is carefully
considered. Table 7 presents the details.
Table 7
Initial Investment
Unit of
Materials Quantity Price Cost
Measure
Crush Graham 6 pack ₱ 45.00 ₱ 270.00
Graham Crackers 24 pack ₱ 46.00 ₱ 1,104.00
Condensed Milk 21 can ₱ 45.00 ₱ 945.00
Nestle Cream 18 pack ₱ 69.00 ₱ 1,242.00
Ripe mango 9 kilo ₱ 80.00 ₱ 720.00
Plastic tub container 90 piece ₱ 5.00 ₱ 450.00
Total Cost ₱ 4,731.00
Number of Tubs Made 90
Cost per tub ₱ 53.00
The table above shows the total cost of materials and ingredients is ₱4,731.00
which yields 90 tubs of mango float. Thus, the cost per tub is calculated to be ₱53.00.
The proponents assume a 10% increase in the cost of raw materials annually.
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Table 8
Annual Cost of Raw Materials for Mango Float
Particulars Year 1 Year 2 Year 3
Cost of Raw Materials per tub 53.00 58.30 64.13
Production Capacity (No. of
28,080.00 36,504.00 47,455.00
Tubs)
Total Cost 1,488,240.00 2,128,183.20 3,043,289.15
The table 8 represents the projected annual cost of raw materials for the production
of Mango Float over three years. It also highlights the importance of careful cost
management and strategic planning to ensure the long term viability of the Mango Float
product.
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Summary of Findings and Conclusion
A. Market Summary
The projected demand and supply of mango float in Tagum City is increasing
annually. Demand and supply comparison shows there is still a significant unsatisfied
demand for the product seen in the first three years of business operation. Despite the
set annual production capacity of the business, it will only cover between 4% to 7% of
the unsatisfied demand for the product. This only shows that the market has substantial
growth potential, providing an opportunity for the business to expand its production
capacity and branch out in the future.
B. Technical Study
The presentation of the technical aspects of the proposed business covers
location, equipment, store furniture and fixtures, operational procedures, and the
partners' plans and strategies for successful operations. The required store equipment
and fixtures are readily available, as they are common among similar establishments in
the area. Considerations also include structures, facilities, utilities, and overhead needs.
To implement these plans, a total investment of Php 220,000 is required.
C. Management Study
The management study of the business is designed for maximum effectiveness.
The proponents selected a Limited Partnership structure due to its simplicity and lower
formation costs, along with minimal record-keeping and reporting requirements. The
organizational structure appoints the General Partner as the overall General Manager,
responsible for overseeing business operations. Additionally, a storekeeper and
production staff are required to ensure efficient manpower. The General Partner also
establishes the core values to guide the team in fulfilling their roles. According to the
project timeline, the business is expected to begin operations in 16 months.
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D. Financial Study
The financial study of the proposed business demonstrates a strong financial
outlook for its first three years of operation. The study reveals positive projections in the
financial statements, indicating an attractive profitability ratio and high liquidity.
Additionally, the payback period is just three months, with a return on investment of
347%.
E. Socio-Economic Study
The proposed business project is poised to make significant contributions to the
local economy playing a crucial role in various areas including employment, government
revenue
F. General Conclusion
The proposed business is well positioned for success based on comprehensive
studies of its market, technical, management, and financial aspects. The market
analysis indicates strong demand with significant growth potential, while the technical
study confirms the feasibility of operations with accessible equipment and strategic
planning. The management aspect, organized under a Limited Partnership structure,
ensures efficient and effective business operations with clearly defined roles and core
values. Financial projections further reinforce the business's viability, showing
profitability, high liquidity, and a quick payback period. Collectively, these elements
suggest that the proposed business is not only feasible but also poised for sustained
growth and profitability.
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