St.

Paul University Philippines

TuguegaraoCity, Cagayan 3500 1

Chapter 1

THE PROBLEM AND REVIEW OF RELATED LITERATURE

Introduction

The food industry today has become more diverse, with

manufacturing varying from small, traditional, family-run

activities that are highly labor intensive, to large,

capital-intensive and highly mechanized industrial

processes. Food industry is a series of activities that

facilitate the consumption and supply of food products and

services across the world. With the unending needs and

wants of the people, businesses have to come up with

different outputs of food and drink products, in order for

them to meet the challenges of the rapidly growing global

food market and remain competitive in the long run.

Consumers in this day and varying ages with their

busy schedules are not only interested with products that

are appetizing and ready for quick consumption but with

products that also address health and nutrition wellness.

For this reason, food innovation strategies can help in

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sustaining business competitiveness and in meeting the

changing and complex customer demands and preferences.

Food innovation involves the design and development

of new food products, the improvement or combination of

existing food products, research into food trends and food

management (Google). In this light, the researchers though

of a product that can satisfy not only the palate of the

customers but also their required nutrients intake.

The proposed product, Veggienisa (vegan Longganisa),

is to introduce a new version of the ever famous Filipino

delicacy called Longganisa. Longganisa is a common

commodity in the Philippines and is usually served at

breakfast, with almost each region having their own

specialty. Longganisa is a long, pork sausage seasoned

with herbs and spices and put into sausage skins also

known as “casings”. As the population becomes more aware

and conscious of what they eat, Veggienisa will be a

perfect food to meet the healthy diet of individuals

without sacrificing the flavor. Moreover, the product will

be offered at a just and reasonable price that would

greatly relate to its quality.

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REVIEW OF RELATED LITERATURE AND STUDIES

History

According to Allen (2015), Longganisa traces its

roots to Spain, where Longganisa is a long, pork sausage

seasoned with paprika, cinnamon, aniseed, garlic and

vinegar. It is sold fresh and must be cooked. It’s not to

be confused with chorizo, which is mostly fermented,

smoked or cured, then sliced and eaten with no cooking

required, or added to flavor a variety of dishes.

In line with Ortiz (2012), at the height of the

Spanish empire, longaniza traveled far and wide — not just

to the Philippines but across the Americas, including

Puerto Rico, the Dominican Republic, El Salvador, Mexico,

Chile, Argentina and Uruguay. Over the course of several

centuries, the defining characteristics of the original

Spanish longaniza changed, with different interpretations

emerging from region to region, and from country to

country.

Along with Wissmann (2014), the Filipino Longganisa

tradition appears to have emerged by way of Acapulco,

presumably around the time Juan de Salcedo, a Spanish

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conquistador who was born and raised in Mexico, founded

Manila. An irresistible historical tidbit: his

grandfather, Miguel López de Legazpi, founded the first

Spanish settlements in the archipelago.

For centuries, Manila was a key stop in the Spanish

trading network that included Lima in Peru and Panama, but

served as a spoke of Mexico rather than a hub of empire.

It is no surprise, then, that in some parts of the

Philippines, as in Mexico, the word recado refers to

condiments or seasoning. In the Philippines, it’s also

used to distinguish the spicy version of Longganisa from

the sweet kind commonly known as hamonado. In Spain,

however, the word “recado” has nothing to do with flavor

or cooking, and simply means “message” or “errand”.

The Longganisa Cuisine

The Philippine Longganisa reflects a wide variety of

local cultures — and, like the national dishes

of kinilaw, adobo and sinigang, come in at least as many

versions as there are creative home cooks. If you want to

savor the full spectrum of flavors that define this

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phenomenon, you must travel to where these traditional

sausages are made. But first, eat your breakfast.

Use of crop as casing would be very suitable for

specialty products using native chicken meat in place of

broilers. The author recommends further study on crops as

casing material using other poultry species and the

development of specialty products with crops as casing

material.

Filipino cuisine is fast evolving primarily because

of the Filipinos’ perspective on colonial mentality that

foreign dishes are better than Filipino cuisines. It is

the reason why most Filipinos, especially the younger

generation, forget how rich our culture is. Most of the

younger generation would prefer fast food and don’t even

bother knowing or tasting Filipino dishes, resulting to

the extinction of the food culture of the Philippines.

Local flavors

According to J.Tan’s food blog, there is no standard

recipe for the Filipino Longganisa, and its preparation

has always been been open to both local creativity and

inter-generational innovation. You can try improving on

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your great-grandmother’s recipe, for example, with a

slight change in how much garlic you throw in. Most

sausage-makers will also confess to just winging it and

flavoring the meat on instinct, improvising with a range

of locally available spices. The result? A wide assortment

of varying flavors and textures.

There are, however, broad categories that are useful

to know, especially if you have certain

preferences. Longganisa de recado is spicy and garlicky.

Among the best servings of spicy Longganisa are those that

come from sausage-makers of Bais in Dumaguete, Lucban in

Quezon, Taal in Batangas, Dipolog, Tuguegarao, Cabanatuan,

Calumpit, Batac and Vigan.

Longganisahamonado, on the other hand, is sweet and

possibly influenced by the Malay sate (satay) and the

sweeter Chinese sausages like lap cheong or siangjiang.

The Longganisa of Bacolod, Cebu, San Pablo and Baguio are

examples of the hamonado tradition. There are also lesser-

known but no less distinctive versions of Longganisa,

among them the sausages from Candaba and Guagua in central

Luzon, which are salty-sour — a possible influence

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of pindang, the Kapampangan practice of using a process of

fermentation to tenderize the meat.

The Fresh Factor

The best-known Longganisa continue to follow time-

tested artisanal traditions: they are cased daily, use no

preservatives and are always sold fresh. The sausages

never see the sun, breathe smoke or touch ice.

Most Longganisa are stuffed into casings made from fresh

pork intestines. Others, especially home-made versions, are

often served “skinless”. One version, in San Pablo, Laguna, was

wrapped in the diaphanous membrane lining a pig’s stomach,

called gapen or sinsal. Most Longganisa are made with ground

meat; however, the towns of Taal and Guinobatan in Albay prefer

the texture of rough-chopped pork. Many people like to eat them

well cooked, with small bits of casing and filling fried to an

almost candied crisp. In Guinobatan, where the annual calendar

includes a Longganisa-stringing contest, the casings are sun-

dried prior to stuffing in order to help guarantee that

crispness. Nearly all artisanal sausage-makers will tell you

that nothing comes close to the flavor of freshly made

Longganisa.

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The Longganisa Production Process

In view thereof by Livestock, the Longanisa's

striking crimson color stops you in your tracks when you

first come across it, but its spicy, complex taste,

pungent aroma and ease-of-cooking hook you and keep you

coming back for more. Longanisa comes in about as many

forms as a sausage can, but you only have to cook fresh

longanisa, which you find both loose and packed into hog

casings. Like chorizo, which is similar in color and

taste, longanisa comprises about 70 percent lean pork and

30 percent fatback, so you can gently poach it to a safe

internal temperature, and then crisp it in its own fat.

Cased Longganisa

Step 1 Thaw the longganisa sausages on a plate in the

refrigerator for about 8 hours if frozen. Place the

sausages in a straight-sided pan and cover them with about

1/2 inch of water.

Step 2 Set the pan on the stove over medium-high heat and

simmer until the water evaporates, about 15 to 20 minutes.

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Step 3 Sauté until the casing crisps, about 10 minutes,

rolling the sausages in the pan as needed to cook all

sides evenly.

Step 4 Drain the longganisa on a few paper towels and

serve immediately.

Loose Longganisa

Step 1 Form the longganisa into patties about 1/2 inch

thick and 3 inches wide or place a palmful of longganisa

on a piece of plastic wrap and roll it into a tight

cylinder. You can also spread the longganisa in an even

layer in the bottom of an oiled sauté pan.

Step 2 Heat a scant amount of oil in a sauté pan and set

it over medium heat. Heat the oil for a few minutes and

add the sausage. If you rolled the longganisa, carefully

unwrap it before placing it in the pan.

Step 3 Fry for 2 to 3 minutes before turning the patties

over with a spatula or stirring the loose sausage. Roll

the rolled longganisa in the pan to cook them on all sides

without breaking them.

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Step 4 Fry the longganisa for about 8 to 10 more minutes,

stirring or turning every 2 or 3 minutes. Fully cooked

longganisa sausage has no traces of pink inside, and the

juices run clear.

Step 5 Drain the longganisa on a plate lined with a few

paper towels and blot the top with a paper towel. Serve

immediately.

As said by Philihappy, the Longganisa around the

Philippines: the best of the breakfast staple. In the

Philippines, the terms are used interchangeably depending

on the region. But paying homage to its Spanish

counterpart, longganisa makes use of black pepper in its

ingredients while chorizo substitutes this with paprika.

The Philippine one comes in varieties other than pork, say

tuna, beef, and chicken—all mixed with different spices.

The plastic-like casing is cleaned-out and boiled pig

intestines.

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The Top 10 Longganisa in the entire Philippines

1.Vigan Longganisa

Vigan longganisa is what Vigan City in Ilocos Sur is

most known for. The heritage city even has its own

festival held every January for their homegrown product,

which is now being proudly exported. What makes it so

popular is its garlicky and sour notes that come from

the combination of Ilocos sugar cane vinegar

(sukangIloko) and local garlic from Sinait which are

both major products of the province.

2. Lucban Longganisa

Aside from Lucban, Quezon’s Pahiyas Festival, Lucban

longganisa is also one of its pride foods. Their version

also has a garlicky flavor, but unlike the Vigan one

that has a distinct flavor from the vinegar used,

Lucban’s makes use of oregano. Other herbs are also

thrown into the mix which gives Lucban’s version a

different scent.

Try Longsilog Lucban (PHP 115) at any Buddy’s Pancit

Lucban Restaurant! They have branches in Metro Manila,

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so you won’t have to go far just to taste this delicious

delicacy.

3. Tuguegarao Longganisa

Tuguegarao longganisa, also called Longganisang

Ybanag, is famous in the region of Cagayan Valley.

Another version that falls into the garlicky category,

the Tuguegarao is plump and stuffed with minced garlic

but manages not to be too overpowering. The yellow color

is due to the achuete(annatto) cooked in oil that is

part of its ingredients.

4. Cabanatuan Longganisa

Known as the Longganisa Capital of the Philippines,

Cabanatuan City in Nueva Ecija is heaven for all lovers

of this breakfast staple. In fact, there are different

variants of the Cabanatuan one, but the most popular is

the batutay, or bototay for some. In this part of the

country, their version of is beef-based, unlike the

usual pork-based fillings. The batutay is sweet and

savory; you can taste the garlic but with a distinctive

sweet taste.

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5. Alaminos Longganisa

This one is easy to identify. When you see links

divided by toothpicks on each end instead of the usual

thread, then those are the Alaminos longganisa. Make

sure you top off your trip to the Hundred Islands with

this breakfast favorite of the Pangasinenses. Alaminos

has a strong garlicky flavor, and recognizable

saltiness, which could be from the local sea salt, which

it’s a big producer of!

6. Cebu Longganisa

Aside from lechon and danggit, Cebu longganisa is one

of the most sought-after delicacies in the province. The

Cebuanos call it Longganisa de Cebu and Chorizo de Cebu.

These are links of red balls that are sweet and (a

little) spicy.

7. Calumpit Longganisa

CalumpitLongganisa, or longganisangbawang(garlic), is

a pride of Calumpit, Bulacan. If Cebu’s version is

straight up red, Calumpit’s version is a lot paler. As

the name suggests, it uses a lot of garlic. But what

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makes it unique is the flavor from the black pepper;

local sellers may even ask you how much pepper you want

in it.

8. Bacolod Longganisa

In Bacolod, they call the native delicacy “chorizo.”

Bacolod chorizos come in two variants: chorizo recado

(salty and vinegar-flavored with a distinct smoky taste)

and chorizo hamonado (sweet flavored). There are two

popular brands that you can choose from: Manaloto’s and

(Tia Pining’s) Ereñeta Bacolod Chorizo. You can find the

latter at Rustan’s Supermarkets, but the Manaloto’s can

be purchased in Bacolod supermarkets.

9. Pampanga Longganisa

Pampanga longganisa is the sweet-type and skinless

kind. It is probably the most famous and most accessible

one in the country because of the brand called

Pampanga’s Best that is available in almost all

supermarkets nationwide. The Pampanga version also

varies from the fillings used (beef, pork, or chicken)

to the flavor notes (smoky, sweet, garlicky, or salty).

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10. Longganisa de Guinobatan

Bicol Express is not the only best dish in the

region. This two-inch delicacy has found its way to the

spotlight when the town of Guinobatan in Albay promoted

their version under the DTI’s One Town, One Product

(OTOP) program. Longganisa-making contests are such hits

during the Guinobatan Longganisa Festival.

The Vegetarian Longganisa

The Veggienisa Logganisa is a small and plump native

sausage, good for about two or three bites. It is garlicky

and has a yellowish color. Although it is eaten anytime,

even as a bread filling, it is traditional favored as

breakfast fare together with fried eggs and steamed or

fried rice. It is best dipped in Ilocos vinegar with

plenty of chili, garlic and onions. Filipinos cook them in

a pan with water. The Longganisa cooks in its own fat

after the water evaporates and is then cooked further

until it slightly caramelizes. A tip to avoid crumbling is

to place it in the freezer for a while before frying it.

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Veggienisa or the Vigan longganisa is said to be an

influence of the Mexican salami. The tradition of making

this native has existed since the period of the Spanish

galleon trade. It is distinct from other Philippine

sausages because of its use of the local sugar cane

vinegar and Vigan-grown garlic, which are major products

of the city as well. The Biguenos are so fiercely proud of

their longganisa that they have made it as the product

they would like to be most known for. They had it

recognized as the city’s One Town, One Project (OTOP)

selection under this national government program. They’ve

endeavored throughout the years to be the top longganisa

producer in the Philippines.

For nearly a decade, Vigan has also hosted longganisa

festivals every January which are attended by thousands of

local and foreign visitors. They celebrate the festival

with street dancing and other activities that have Vigan

longganisa theme. They also choose the festival for

launching of projects that help market the native Vigan

sausage not only in the Philippines, but abroad as well.

One of these projects is the financial assistance the

local government has given in improving the packaging of

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the products of Vigan longganisa manufacturers. This is to

safe-guard the integrity of the Vigan longganisa from fake

Vigan native sausages that are being sold to unsuspecting

clients.

Problems Processed Meat

According to a new report by Chatham House their

recently published Changing Climate, Changing Diets:

Pathways to Lower Meat Consumption, Global meat

consumption and greenhouse gas emissions are at all-time

highs. The livestock sector accounts for 15 percent of all

emissions, the equivalent to the emissions of all vehicles

worldwide. If global citizens reduced meat consumption, it

would result in over one-fourth of the emission reductions

needed by 2050, which is necessary to keep global warming

below the “danger level” of two degrees Celsius.

Studies show that people who eat too much meat are 20

percent more likely to develop cancer, especially if they

eat a lot of red meat. Pancreatic cancer, in particular,

has been linked to heavy meat consumption. Meat also

contains lots of saturated fat and cholesterol, which can

lead to heart disease.

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As said by articles published by FitDay, prrocessed

meats, such as hot dogs, often contain nitrate, a

preservative that may become carcinogenic when heated to

high temperatures during the cooking process. All meats

may form carcinogenic heterocylic amines, or HCAs, during

high-temperature cooking. Marinading meat in vinegar, or

microwaving it before cooking, can help reduce the number

of carcinogenic HCAs in meat. However, meat may also

contain high levels of hormones, which can trigger

reproductive problems and early-onset puberty in children.

Health Benefits

Along with the United States Department of

Agriculture, the amount of vegetables you need to eat

depends on your age, sex, and level of physical activity.

Recommended weekly amounts from each vegetable subgroup

are shown in the two tables below:

Weekly Vegetable Subgroup Table

Amount per Week
Red and Beans
Dark green Starchy Other
orange and
vegetables vegetables vegetables
vegetables peas
2-3 yrs old ½ cup 2 ½ cups ½ cup 2 cups 1 ½ cups
Children
4-8 yrs old 1 cup 3 cups ½ cup 3 ½ cups 2 ½ cups
Girls 9-13 yrs old 1 ½ cups 4 cups 1 cup 4 cups 3 ½ cups

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Weekly Vegetable Subgroup Table

Amount per Week
Red and Beans
Dark green Starchy Other
orange and
vegetables vegetables vegetables
vegetables peas
1½
14-18 yrs old 1 ½ cups 5 ½ cups 5 cups 4 cups
cups
1½
9-13 yrs old 1 ½ cups 5 ½ cups 5 cups 4 cups
Boys cups
14-18 yrs old 2 cups 6 cups 2 cups 6 cups 5 cups
1½
19-30 yrs old 1 ½ cups 5 ½ cups 5 cups 4 cups
cups
Women 1½
31-50 yrs old 1 ½ cups 5 ½ cups 5 cups 4 cups
cups
51+ yrs old 1 ½ cups 4 cups 1 cup 4 cups 3 ½ cups
19-30 yrs old 2 cups 6 cups 2 cups 6 cups 5 cups
31-50 yrs old 2 cups 6 cups 2 cups 6 cups 5 cups
Men
1½
51+ yrs old 1 ½ cups 5 ½ cups 5 cups 4 cups
cups

As Mark Sisson stated on marksdailyapple, the idea

that vegetables are an essential part of a healthy diet

has been hammered into our collective consciousness by

every authority out there. Parents, teachers, scientists,

government health “experts” all stress the importance of

eating your veggies.

An article of Jonathan Pielmayer says that A high

intake of fruit and vegetables lowers the risk of type 2

diabetes, heart disease, stroke and some cancers. These

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chronic diseases are unfortunately common – it’s been

estimated a $269 million could have been saved in 2008 if

everyone in Australia met fruit and vegetable

recommendations.

The recommendation to include plenty of vegetables

and fruit in our diet is based on a large body of evidence

showing the risk of a range of health conditions is

reduced as we eat more fruit and vegetables.

A research by a group named Int J Epidemiol suggests

our current targets don’t go far enough. It estimates an

optimal intake for reducing our risk of heart disease and

early death to be around ten serves of fruit and

vegetables a day. Whether we are aiming for two and five,

or ten serves, is somewhat academic – the clear message is

most of us need to increase our fruit and vegetable

intake.

An article posted on whfoods states you need to eat

vegetables every day because you simply cannot find

another food group that is as perfectly matched to our

everyday human needs as vegetables! Vegetables fit us like

a glove. From so many different perspectives, the nature

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of vegetables and the nature of human health are matched

up in a way that simply cannot be duplicated by other food

groups, including fruits, legumes, nuts and seeds, grains,

seafood, or poultry and meats.

To begin with, vegetables as a group are so low in

calories that it is very difficult to gain weight even if

you overeat them. (This statement wouldn't apply, of

course, to batter-coated and fried vegetables, or to

vegetables mixed into a thick cheese casserole.) On

average, you are looking at 50 calories (or less) per cup

from most of the World's Healthiest vegetables! That

amount is astonishingly low, even when you compare it to

other food groups within the World's Healthiest Foods.

With the World's Healthiest nuts and seeds, for example,

you're almost always looking at 750 calories or more per

cup. That's 15 times higher than the World's Healthiest

vegetables. With legumes, calories per cup fall into the

225-250 range. For fruits, the calories per cup can drop

down fairly low for extremely watery fruits (like

watermelon, which drops down to about 50 calories per

cup), but it can also spike up to more than 400 calories

per cup in the case of dried fruits like raisins. The

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uniquely low-calorie nature of vegetables as a group means

that you can be generous with them in a Healthiest Way of

Eating and not have to worry about the calories.

Optimal nourishment is another reason that vegetables

are important on a daily basis. You need to eat vegetables

every day because you need a supply of vitamins every day.

Some vitamins can be stored for future use and others

cannot. Some of the vitamins that can be stored in the

body are called fat-soluble vitamins such as vitamins A, D

and E. For the body to run its best we also need water-

soluble vitamins. Found within this group are all of the

"B-complex" vitamins, including vitamins B1, B2, B3, B5,

B6, B12, biotin, choline, folic acid, and vitamin C. We

need these water-soluble vitamins every single day because

they can't be stored in the body or can only be stored in

small amounts. And since the body cannot make these

vitamins (or any vitamins), we have to get them from the

food we eat. When considered as a group, vegetables are

unusually rich sources for a full mixture of water-soluble

vitamins. That's why so many health care recommendations

(including the U.S. Food Pyramid) encourage 3-5 servings

of vegetables per day.

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When it comes to vegetables, there is also their

abundance of phytonutrients to consider. In the science of

food, no change has been bigger than the discovery of

phytonutrients and their unique place in our health.

Phytonutrients include all of the unique substances that

give foods their brilliant colors, their delicious

flavors, and their unique aromas. They are also the

nutrients most closely linked to prevention of certain

diseases. Carotenoids and flavonoids are the two of the

largest groups of phytonutrients, and there is no food

group that provides them in amounts as plentiful as

vegetables. The phytonutrients in cruciferous vegetables

like broccoli, and in root vegetables like onions and

garlic, are unique when it comes to decreased risk of

certain cancers, and some of these phytonutrients simply

cannot be found in other food groups.

Finally is the pleasure of chewing and amazing

digestive benefits that come from the high-fiber content

of vegetables. Dietary fiber is critical for our health,

not only on a daily basis, but on a meal-by-meal and

snack-by-snack basis as well. Food cannot move through our

digestive tract in a healthy way unless it is fiber-rich.

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And, vegetables are some of the very richest sources of

fiber that exist.

Facts articulated on ChooseMyPlate stated these

Nutrients existing on vegetables:

• Most vegetables are naturally low in fat and

calories. None have cholesterol. (Sauces or

seasonings may add fat, calories, and/or

cholesterol.)

• Vegetables are important sources of many nutrients,

including potassium, dietary fiber, folate (folic

acid), vitamin A, and vitamin C.

• Diets rich in potassium may help to maintain healthy

blood pressure. Vegetable sources of potassium

include sweet potatoes, white potatoes, white beans,

tomato products (paste, sauce, and juice), beet

greens, soybeans, lima beans, spinach, lentils, and

kidney beans.

• Dietary fiber from vegetables, as part of an overall

healthy diet, helps reduce blood cholesterol levels

and may lower risk of heart disease. Fiber is

important for proper bowel function. It helps reduce

constipation and diverticulosis. Fiber-containing

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foods such as vegetables help provide a feeling of

fullness with fewer calories.

• Folate (folic acid) helps the body form red blood

cells. Women of childbearing age who may become

pregnant should consume adequate folate from foods,

and in addition 400 mcg of synthetic folic acid from

fortified foods or supplements. This reduces the risk

of neural tube defects, spina bifida, and anencephaly

during fetal development.

• Vitamin A keeps eyes and skin healthy and helps to

protect against infections.

• Vitamin C helps heal cuts and wounds and keeps teeth

and gums healthy. Vitamin C aids in iron absorption.

The same article included these benefits

• Eating a diet rich in vegetables and fruits as part

of an overall healthy diet may reduce risk for heart

disease, including heart attack and stroke.

• Eating a diet rich in some vegetables and fruits as

part of an overall healthy diet may protect against

certain types of cancers.

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• Diets rich in foods containing fiber, such as some

vegetables and fruits, may reduce the risk of heart

disease, obesity, and type 2 diabetes.

• Eating vegetables and fruits rich in potassium as

part of an overall healthy diet may lower blood

pressure, and may also reduce the risk of developing

kidney stones and help to decrease bone loss.

• Eating foods such as vegetables that are lower in

calories per cup instead of some other higher-calorie

food may be useful in helping to lower calorie

intake.

Health Risks

An exerpt from womenshealthmag stated that Keri

Glassman, M.S., R.D., president of A Nutritious Life and

weight-loss advisor for Women's Health, agrees that fat

unfairly gets a bad rap. "Healthy fat not only has a place

in your diet," she says. "It has an essential role in your

diet—and there’s even emerging research that suggests some

types of saturated fats may have health benefits, like

helping to burn fat stores and lower bad cholesterol."

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Glassman isn't against using fat to cook veggies—but

deep-frying is a whole different story. Sure, you can use

a healthier oil (Bittman suggests olive oil, for example).

But when the oil gets hot enough for deep-frying, its

chemical structure changes, which turns into an unhealthy

oil. Plus, whatever you're cooking will absorb way more

oil during deep-frying than it would through other cooking

methods (there goes that whole moderation thing). To make

matters worse, deep-frying veggies breaks down a lot of

the vitamins and minerals they contain.

So while you certainly won't wreck your health by

eating deep-fried foods once a month, Glassman wouldn't

recommend going out of your way to eat deep-fried

vegetables, either. "I wouldn’t say that deep-frying is

the way to get in your healthy fats," she says.

Ultimately, using healthy oils for other cooking methods

like roasting or pan-frying—or eating foods like avocados

and salmon that naturally contain good-for-you fats—are

going to be the best way to make sure you work enough fat

into your diet. Not sure how much you should be eating?

Check out this guide to the amounts (and types) of fats

you need each day.

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Also, an article written by PATIENCE PARADOX, MA on

livestrong states frying vegetables can be done properly

to avoid oxidation and retain nutrients, the over-reliance

on fried food leads to obesity. The highest frying

temperatures cause the formation of toxins such as amines,

acrylamides and sulphur compounds. The repeated use of

reheated frying oil can destroy antioxidants in each batch

of food you prepare with it. In addition, large amounts of

fat in your diet contribute to an increased risk of heart

disease, cancer, diabetes and hypertension.

Her research findings showed the July 2007 issue of

the “American Journal of Clinical Nutrition” published a

study by Spanish researchers looking at the types of food

choices that may trigger obesity. The researchers found

that obesity increased in people who consumed lots of

fried foods. Furthermore, a 2005 Harvard Medical School

study found that adolescents who eat large amounts of

fried foods are more likely to have a poor diet and to be

heavier than their contemporaries.

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Statement of the Problem

The study aims to determine the feasibility of

marketing Veggienisa Product in Tuguegarao City, Cagayan.

Specifically, it seeks to answer the following questions:

1. What is the profile of the participants in terms

of:

1.1 Gender

1.2 Age

1.3 Educational Attainment

2. Are there interested individuals in buying

Lonnganisaa made up of Vegetables?

3. What is these individuals consider in buying a

Veggienisa?

4. What is the Marketing plan for a Veggienisa

Product in Tuguegarao City?

5. What is the Operational and Production plan for a

Veggienisa Product in Tuguegarao City?

6. What is the Management plan for a Veggienisa

Product in Tuguegarao City?

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7. What is the financial plan for a Veggienisa

Product in Tuguegarao City?

8. What is the Feasibility of selling Veggienisa in

Tuguegarao City?

Significance of the study

The researcher decided to come up with this business

plan primarily to help the community of the city

Tuguegarao City, Cagayan for this can serve as an

additional source of living and at the same time introduce

to them the benefits of eating healthy. This section will

give various significance of the study given.

To the researchers. In conducting the study, the

researchers will acquire new skills and knowledge that

they can use in their profession. This paper will help

them widen their wisdom in the complex nature of the

business world.

To the customers. The proposed business plan will

bring upon an eye-opening innovation of the variations you

can do the original version of Longganisa. The product

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also contains nutrients that provide health benefits are

offered at reasonable price.

To the community. This study will help the community

learn that they could make food innovations and

improvements in order to come up with new and better food

products. This will also give the community an opportunity

to engage in a business that will serve as a stepping

stone to economic growth.

To the future researchers. In the future, this study

can be of great help to the future researchers as a

reference when they conduct a similar business plan.

Scope and limitations

This study focuses in identifying costumer’s taste

and satisfaction, the suggestions or recommendations of

the customers for the vegetarian version of Longganisa.

This study limits the coverage on selected people

currently residing in the city of Tuguegarao, Cagayan.

Some students and residents will be covered as a part of

the participants.

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Definition of Terms

For purpose of clarity, understanding and giving

light to this research, the following terms are

operationally defined while others are explained as they

were used:

1. Financial Plan. A financial plan is a comprehensive

evaluation of an investor's current and future

financial state by using currently known variables to

predict future cash flows, asset values and

withdrawal plans.

2. Longganisa. Filipino name comes from the Spanish word

longganisa, referring to a type of spicy cold pork

sausage.

3. Management Plan. A project management plan is a

document used to describe every phase of a project.

The components may include initiating, planning,

executing, monitoring and controlling, and closing.

4. Marketing Plan. a written document that describes

your advertising and marketing efforts for the coming

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year; it includes a statement of the marketing

situation, a discussion of target markets and company

positioning and a description of the marketing mix

you intend to use to reach your marketing goals

5. Operational Plan. highly detailed plan that provides

a clear picture of how a team, section or department

will contribute to the achievement of the

organization’s goals.

6. Umami.It means savory and delicious. It is described

as the "fifth taste" along with sweet, sour, bitter

and salty.

7. Tofu. It is made from soybean curds, is naturally

gluten-free and low calorie; it contains no

cholesterol and is an excellent source of protein,

iron, and calcium.

Conceptual Framework

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All the information gathered were analyzed and used

to come up with a business plan composing of Marketing

Plan, Management and Organizational Plan and Financial

Plan which will became the basis in concluding whether or

not the proposed business is feasible.

Paradigm of the Study

Input Process

1. ProfileOutput
of 1. Analysis of Business Plan
the gathered data of Veggienisa
respondent 2. Needs and
according to: Resource
1.1. Gender Analysis
1.2. Age 3. Formulation of
business plan:
1.3. Civil
3.1 Marketing
Status Plan
2. Preferences 3.2. Technical
of the and
participants Organizational
based on the Plan
questionnaire 3.3.
Management
3. Suggestions Plan
and Operational
recommendatio plan
ns from the 3.4. Financial
customer Plan
participants
and panellist
4. Condition and
status of the
Review of Related
target
market.

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Feedback

(Figure 1)

Conceptual Paradigm of the Study (Figure 1)

This paradigm shows how the researchers were guided

in conducting the study. The framework shows the input-

process-output model. The input includes the profile of

the participants in terms of gender, age, and civil

status. Preferences of the participants. Suggestions and

recommendations from the customer and panelist and also

the condition and status of the target market. The second

box includes the analysis of gathered data, needs and

resource analysis, and the formulation of business plan:

Marketing Plan, Technical and Organizational Plan,

Management Plan, Operational Plan, and Financial Plan. And

the output shows the Business Plan of Veggienisa.

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 St. Paul University Philippines
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Chapter 2

METHODOLOGY

This chapter addresses research methodology and

procedures intended for this research. It is concerned on

the presentation of research design, research instrument,

the selection of participants, data gathering procedure,

and analysis of data gathered.

Research Design

This study is a descriptive research; it deals with

developing ideas and uncovering trends in thought and

opinions by diving deeper into the problem from

understanding reasons, opinions and suggestions from the

participants. This study will as well promote industrial

advancement for the current market. In addition, this

study would present a more innovative product that suits

the changing preferences of the contemporary market.

Participants of the Study

The researchers randomly selected the parents and

students in Tuguegarao City, Cagayan to be the

participants of this study.

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Sampling Techniques

Instrumentation

The researchers used the following instruments to

gather information in the study:

 Questionnaire

The researcher used questionnaire in gathering data

pertinent to the study. A letter explaining the purpose of

the study was attached together with the questionnaire. A

questionnaire is usually considered as the principal

research instrument since it is the best and efficient way

to gather data. The questionnaire was given to the

participants to determine the feasibility of putting up

the study-inn establishment. It consists of practical

questions that are easy to analyze which helped the

researcher to further evaluate the study.

 Interview

This research instrument is relevant to the

participants. It helped the researchers to gather general

information regarding the study. It became an instrument

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to discuss matters which were not clear in the

questionnaire.

Data Gathering Procedure

In pursuing this particular study, the following

steps will be undertaken:

1. The researchers sought the permission to conduct

study from the Office of the School of Business,

Accountancy and Hospitality Management.

2. The researchers sent a letter of request which

pertains to the study to the office.

3. The researchers personally distributed the

questionnaire to the participants.

4. The researchers collected the questionnaires for

the collation, tabulation and analysis to the

participants’ responses.

Data Analysis Procedures

Upon retrieval of the questionnaires, the data were

collated, tabulated and treated statistically through the

following tools:

1. Statistics, percentage frequency distribution is a

table that displays the frequency of various

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outcomes in a sample. Each entry in the table

contains the frequency or count of the occurrences

of values within a particular group or interval,

and in this way, the table summarizes the

distribution of values in the sample. This method,

the researchers were able to fully grasp the

various preferences of the participants, how they

differ to one another, and how significant are the

differences.

2. Break-even and Financial Statement Analysis was

used to determine when the business will be able

to cover all its expenses and begin to make a

profit. It is important for the researchers to

identify the business’ startup costs because

from this, it will help them to determine the

sales revenue needed to pay for the ongoing

business expenses. Through this type of analysis

also, the researchers had a clearer vantage

point to the budget planning, cost adjustments,

financial management and selling price of the

product.

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Chapter 3

RESULTS AND DISCUSSION

Participants

Table 1.Frequency and Percentage Distribution of the

participants in terms of Gender.

Gender Frequency Percentage

Male 23 46%
Female 27 54%
Total 50 100%

The table reveals that out of 50 participants and 46%

or 23 of it are male and 54% or 27 of it are female.

Hence, most of the participants are female

Table 2.Frequency and Percentage Distribution of the

participants in terms of Age.

Age Frequency Percentage

15-20 9 18%
21-30 23 46%
31-above 18 36%
Total 50 100%

The table shows that out of 5 participants, 18% or 9

are within the range of age of 15-20, 46% or 23 of which

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are in the range of 21-30 years of age and 36% or 18 are

in the 31 and above years of age. Thus, majority of the

participants are within the range of 21-30 years old.

Table 3.Frequency and Percentage Distribution of the

participants in terms of Civil Status

Civil Status Frequency Percentage

Single 26 52%
Married 22 44%
Widow/er 1 2%
Legally Separated 1 2%
Total 50 100%

The table displays the civil status of the

participants. That out of 50 participants, 52% or 26 are

single, 44% or 22 of the participants are married, and 2%

or 1 is widow/er and 2% or 1 is legally separated. Hence,

most of the participants are single.

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Table 4.Frequency and Percentage Distribution of the

participants in terms of whether they eat Longganisa or

not.

Frequency Percentage
Yes 50 100%
No 0 0%
Total 50 100%

The table discloses that out of 50 participants, 100%

or 50 of them eat Longganisa and none do not eat

Longganisa. Therefore, all participants eat Longganisa.

Table 5.Frequency and Percentage Distribution of the

participants in terms of why they eat Longganisa.

Reasons Frequency Percentage

Affordable 18 36%
Delicious 37 74%
Easy To Cook 26 52%
Goes Well with other foods 9 18%
Total 50

The table expresses that out of 50 participants, 36%

or 18 because it is affordable, 74% or 37 eat Longganisa

because it is delicious, 52% or 26 eat Longganisa because

it is easy to cook and 18% or 9 eat Longganisa because it

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goes well with other foods. Thus, majority of the

participants eat Longganisa because it is delicious.

Table 6.Frequency and Percentage Distribution of the

participants in terms of factors the participants consider

in buying a Longganisa.

Factors Frequency Percentage

Taste 48 96%
Texture 14 28%
Packaging 4 8%
Price 18 36%
Cleanliness 1 2%
Flavor 1 2%
Total 50

The table indicates that out of 50 participants, 96%

or 48 consider taste, 28% or 14 consider texture, 8% or 4

consider packaging, 36% or 18 consider price, 2% or 1

consider cleanliness and 2% or 1 consider flavor. Hence,

majority of the participants consider taste when buying a

Longganisa.

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Table 7. Frequency and Percentage Distribution of the

participants in terms of what type of Longganisa do they

prefer.

Type Frequency Percentage

Skinned 14 28%
Chorizo 3 6%
Garlic 39 78%
Total 50

The table reveals that out of 5 participants, 28% or

14 prefer skinned Longganisa, 6% or 3 prefer chorizo and

78% or 39 prefer garlic Longganisa. Therefore, majority of

the participants prefer garlic Longganisa.

Table 8. Frequency and Percentage Distribution of the

participants in terms of how often do they eat Longganisa.

Period Frequency Percentage

Everyday 1 2%
Once A Week 38 76%
Twice A Week 3 6%
Thrice A week 2 4%
Once A Month 6 12%
Once A Year 0 0%
Total 50 100%

The table shows that out of 50 participants 2% or 1

eat every day, 76% or 38 eat once a week, 6% or 3 eat

twice a week, 4% or 2 eat thrice a week, 12% or 6 eat once

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a month and none eat once a year. Hence, majority of the

participants eat once a week.

Table 9.Frequency and Percentage Distribution of the

participants in terms of how much they consume Longganisa

on a weekly basis.

Kilograms Frequency Percentage

¼ 12 24%
½ 26 52%
1 9 18%
More than 1 3 6%
Total 50 100%

The table shows that out of 50 participants, 24% pr

12 eat ¼ kg of Longganisa per week, 52% or 26 eat ½ kg of

Longganisa per week, 18% or 9 eat 1 kg of Longganisa per

week and 6% or 3 eat more than 1 kg of Longganisa per

week. Thus, majority of the participants eat ½ kg of

Longganisa per week.

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Table 10. Frequency and Percentage Distribution of the

participants in terms of whether they are willing to eat a

Longganisa made of vegetable.

Frequency Percentage
Yes 32 64%
No 18 36%
Total 50 100%

The table shows that out of 50participants, 64% or 32

are willing to eat a Longganisa made of vegetable and 36%

or 18 are not willing to eat a Longganisa made of

vegetable. Therefore, most of the participants are willing

to eat a Longganisa made of vegetable.

Table 11. Frequency and Percentage Distribution of the

participants in terms of the price range they are still

willing to buy a Longganisa made of vegetable.

Price Frequency Percentage

50-100 7 22.58%
101-150 13 41.94%
151-200 11 35.48%
201 and above 0 0%
Total 31 100%

The table shows that out of the participants who are

willing to buy a Longganisa made of vegetable, 22.58% or 7

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are willing to buy at a price of P50-100, 41.94% or 13 are

willing to buy at a price of P101-150, 35.48% or 11 are

willing to buy at a price of P151-200. Hence, majority of

the participants who are willing to buy a Longganisa made

of vegetable is willing to pay P101-150 per kilo

Table 12.Frequency and Percentage Distribution of the

participants in terms of the reason why they are not

willing to eat a Longganisa made of vegetable.

Reason Frequency Percentage

Traditions 5 26.32%
Taste Difference 2 10.53%
Carnivorous 12 63.16%
Total 19 100%

The table reveals that out of the participants who

are not willing to buy a Longganisa made of vegetable,

26.32% or 5 because of traditions, 10.53% because of taste

difference and 63.16% or 12 because they are carnivorous.

Hence, majority of the participants are not willing to eat

a Longganisa made of vegetables is because they are

carnivorous.

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Chapter 4

BUSINESS PLAN

A business plan is a plan for attaining the business’

goals and objectives for success. This aids researchers in

carefully putting up a business. This chapter includes the

Needs and Resources Analysis, Market Study, Marketing

Plan, Management and Organizational Plan, Production Plan

and Financial Plan.

“Veggienisa”

The researchers noticed the high demand for processed

foods, specifically, Longganisa in Tuguegarao City. Due to

its delectable taste and affordable price, Longganisa has

become a staple viand in Region II. With many variations

created by expert Longganisa makers, families have

experienced a variety of versions made in order to meet

their own tastes.

Due to the fact that Longganisa is made from fatty

meat, sugar, preservatives, and other spices that

considerably risk a person’s health the researchers

concerned themselves with the idea that Longganisa may be

created with ingredients that may lower the probability of

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endangering one’s health. In this light, the researchers

proposed a version of Longganisa that is not made with

meat, but with mushrooms and tofu as the main ingredients

which was named “Veggienisa”, since the main objective of

this product is to create a variation of Longganisa that

is significantly healthier and more affordable, but still

satisfies the yearning of the consumers’ taste buds.

Brief Description

“Veggienisa” is a version of Longganisa made entirely

without meat and preservatives. This is a healthier

substitute to the Longganisa that consumers are used to

buy. The Veggienisa will not only provide a substitute for

Longganisa, but it will also capture the vegetarian market

for it does not contain any meat. Veggienisa will also aid

in the diet plans of those who wish to lessen their fatty

intakes, thus, also capturing the market for people who

aim to lead healthier lives. And, due to the fact that

meat is not in the list of ingredients, Veggienisa will

also be much more affordable than the usual Longganisa,now

capturing the market of those who look for cheaper

alternatives.

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The researchers’ idea of introducing this product was

solely based on the need of the consumers for healthier,

more affordable foods and wholesome lifestyles.

Need Analysis

According to the United Nations Food and Agriculture

Organization, the Philippines is among the developing

countries with high levels of obesity and under-nutrition.

“Obesity, as a form of malnutrition, results from

shifts from local and traditional diets to foods that are

increasingly heavy in salt, sugar and fat or processed

foods. The shift to a steady diet of processed food is due

to the increasing cost of nutritious and natural food.”

the United Nations Food and Agriculture Organization (FAO)

stated in one of their reports.

Many Filipinos, youth and adults alike, are looking

for healthier alternatives for their usual intakes of

processed foods. One of the most commonly bought processed

foods here in Cagayan is Longganisa. Longganisa is usually

made from ground pork, garlic, and other spices, and has

been dubbed as “the pork of morning” of many Tuguegarao

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households, as Longganisa has taken its place at the

breakfast table. Although Longganisa is a delectable and

satisfying viand, it poses a considerable amount of risk

to a person’s health.

Eating pork products, which are loaded with artery-

clogging cholesterol and saturated fat increases one’s

chances of developing heart disease, diabetes, arthritis,

osteoporosis, Alzheimer’s, asthma, and impotence.

Furthermore, the World Health Organization’s International

Agency for Research on Cancer has put processed meat

(corned beef, luncheon meat, beef jerky and sausages

(Longganisa)) in the same danger category as smoking or

asbestos, with a confirmed link to colon and stomach

cancer.

In this light, the researchers have come up with the

idea to make Longganisa a health-friendlier staple food by

creating a version of it that not only does not put your

health at risk, but also opens a possibility of living a

better lifestyle. “Veggienisa” shall have primary

components of tofu and mushrooms, which also bring to

light many health benefits that can be derived from such.

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Resource Analysis

Tuguegarao City, Cagayan is home to many Longganisa-

making and selling family businesses that cater to a wide

variety of tastes and preferences. Consequently, various

suppliers of raw materials such as meat and other spices

from all over the region, if not, the country, have

flocked to Tuguegarao in order to capture the market for

their goods. Thus, making the work of looking for

Longganisa casings easier and faster.

One of Veggienisa’s main ingredients is mushroom.

Relatively, one of the Department of Trade and Industry

Region II’s Top 3 Priority Investment Areas for Agri-Aqua-

Marine Based industries is Mushroom Production.

Consequently, mushrooms can be commonly found right in our

region.

The researchers also decided to put up the Veggienisa

Business in Tuguegarao City because 1) Tuguegarao City is

the Commercial Capital of Cagayan and 2) Tuguegarao City

has the largest population in the whole of Cagayan, thus,

making buying supplies, selling and marketing products

more efficient and more effective.

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Furthermore, the business shall employ local

Longganisa makers who are veterans in the Longganisa

business not only because they know how to make

Longganisa, but also because they have connections around

Cagayan.

MARKET STUDY

Market Share

The proposed Longganisa store will be located at a

strategic place at the Tuguegarao City’s Centro. Not only

will this benefit the store by ensuring more customers,

but it will also lessen the hassle for customers of

traveling far just for choosing to buy and eat healthier

food. It will also be a practical location to obtain

supplies for Veggienisa.

Market share of our data was derived by using this

formula:

Total population x % of consumers willing to buy

Number of competitors plus 1

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Target Market

The target markets are Tuguegaraoeňo and/or Cagayano

Households that consider Longganisa as one of their staple

food. Another target market is the people who are looking

for healthier and cheaper alternatives for processed meat

products. Additionally, one target market is Vegetarians

who still wish to eat meat/meat-like food without

violating their norms.

 Target Market is computed using this formula:

Market Share x % of participant will to buy Veggienisa

Market Strategy

People nowadays do not easily buy into innovations

unless there are proofs of support from standard-setting

bodies and evidences of health benefits. That is why in

order to facilitate factual marketing, the researchers

will first obtain endorsement from government agencies

that may add value to the said product, such as the

Department of Science and Technology, Department of Trade

and Industry, and Bureau of Food and Drugs. Once these

endorsements are given, the researchers will tap local

supermarkets for partnerships and understandings with them

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so that Veggienisa may be strategically placed on publicly

advertised markets and such. The researchers will also use

the power of social media in terms of advertisement,

especially since majority of social networking site (SNS)

users are physically and health conscious youth and

adults. Through social media, the researchers plan on

educating the netizens with regards to the dangers of too

much fat intake and the benefits one can derive from

eating healthier alternatives. Furthermore, the

researchers plan on showcasing and promoting Veggienisa by

joining lifestyle and science innovation conventions that

cater to products such as ours so as to promote on a

national level the need for natural modernization through

the use of healthier lifestyles.

Supply and Demand Analysis

The acquisition of the ingredients of Veggienisa does

not pose much of a problem because Cagayan is an agri-

based province that caters to various agricultural

plantations, ranging from rice to corns, and other staple

food. Consequently, supply of raw materials for Veggienisa

is abundant and more than enough.

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Hopefully, Cagayanos will embrace the concept of

healthier alternatives because these alternatives are

grown right in their backyards, and not only will this

benefit the researchers, but will also give profit to the

province of Cagayan by ensuring that all supplies shall be

obtained from them, thus achieving the mission of

“Tangkilikin ang sariling atin”.

Below are the listed factors that significantly

affect the demand and supply of the Exotic Foods:

1.Price. As the price of the raw materials increases,

the pricing of Veggienisa as a finished product also

increases.

2.Quality of the Product. The quality of the finished

product plays a major role on its marketability. No

matter how healthy and helpful the ingredients maybe,

if the quality as a whole is poor, then the demand

for such decreases.

3.Availability of the Raw Materials. Since Veggienisa

will be manufactured at Tuguegarao City, Cagayan, and

all its ingredients are also from the province, then

the availability of the product will significantly

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increase the demand for it as there will be no

waiting time for delivery.

4.Market Impact. Cagayanos are fond of savory and

spiced products, thus making Veggienisa a contending

competitor in the market, since the researchers do

not intend to compromise the taste of the product

just for the health benefits it may contribute. In

other words, taste bud satisfaction is leveled with

the need for healthier alternatives. And although

many businesses compete for the Longganisa market,

Veggienisa will be the first of its kind in Cagayan.

MARKETING PLAN
A. Marketing Description

The ideal customers of Veggienisa are those who

regularly consume processed meat such as Longganisa but

seek healthier alternatives for such. Another ideal market

is the Vegetarian community who wishes to eat Longganisa

without sacrificing their norms. Another market is those

who seek cheaper products than processed meat. This

business proposal shall provide their wants, needs and

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reach their expectations of a cheaper, healthier

alternative to processed food.

B. Marketing Program

To promote the business, linkages and connections

will be established through formal partnerships and

agreements prior to the opening in order to ensure that

there will be an adequate number of people already aware

of the existence of Veggienisa. Social media campaigns

will also be extensively utilized where promotional posts

(photos and videos) shall be used to enlighten the

millennial crowds and other netizens. On the day of the

opening, Veggienisa shall be giving out cooked free

samples and demonstrations on how to cook the product in

order to get attention from passersby. Also, discounts

will be given to the first 50 buyers of the said product.

C. Pricing strategy

The proposed business shall base its pricing strategy

to lower than the Longganisa product. This will likely

penetrate the market. This will gain momentum to gain

higher profits later on. This strategy will be

complemented with Psychological Pricing strategy. This is

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a pricing strategy that will attract customers

psychologically. Customers tend to perceive odd prices as

being significantly lower than they are, tending to round

to the next lowest monetary unit. Thus, prices such as

1.99 are associated with spending 1 rather than 2. The

theory that drives this is that lower pricing such as this

institutes greater demand than if consumers were perfectly

rational.

D. Competitive Positioning

Veggienisa is the pioneer Longganisa made out of

mushrooms and tofu that will hit the local market,

offering not only cheaper products, but also healthier

alternatives that aid in giving the public the chance to

redirect themselves to healthier lifestyles. Veggienisa is

the first and only of its kind in Cagayan that will

promote Agri-economic benefits in the form of health-

friendly consumer products.

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OPERATIONAL AND PRODUCTION PLAN

A. Plant Location

It will be conveniently located in the Mall of the

Valley, Tuguegarao City, Cagayan.

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B. Stall Layout

C. Floor Plan

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D. Production Process

Ingredients

 1 can of Golden Mushroom and Jolly Mushroom soaked

in warm water for at least 20 minutes, minced.

 12 ounces extra-firm tofu, drained, pressed,

crumbled

 1 cup of Breadcrumbs

 3/4 cup brown sugar

 1 garlic, peeled, crushed, and minced

 5 tablespoon vinegar

 5 tablespoon Soy Sauce

 2 tablespoons soy sauce

 1 pack of black pepper

 1 cup of breadcrumbs

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 1/4 Carrots

 1/8 Baguio Beans

 ½ Cabbage

Procedure

1. Using a bowl, mix all ingredients thoroughly.

2. Add breadcrumbs. Thoroughly combine everything using

your hands so the breadcrumbs could soak up the

moisture from the mixture.

3. Set aside and let it marinate for at least 30 minutes

in the fridge.

4. Taste mixture and adjust seasoning to taste.

5. Still using your hands, form mixture into sausage links

(or whatever shape you desire). Add more breadcrumbs if

needed to firm up.

6. Wrap and pack all formed Veggienisa.

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MANAGEMENT PLAN
A. Form Of Organization

This business will be a partnership to procure enough

to finance the starting capital of P100, 000 and to have a

profound supervision in the operations while giving

quality services to their clients.

The table illustrates the time of preparation from

the start of the business operation.

Estimated
Week
Activities Cost
1 2 3 4 5 6 7 8 9 10 Php
Preparation of 2,000.00
Business Plan

Product 25,000.00
Development
Try- out of 800.00
products
Hiring 500.00
Phase 1: 2,000.00
Production of
product: Training
of employees
Purchase of Meet 15,000
and Vegetable
Grinder
Purchase of 15,000.00
Refrigerator
Purchase of 4,000.00
Kitchen Tools
Partial Purchase 7,750.00
of Furniture &
Fixtures

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Trial run 2,000.00

Advertisement 5,000.00
Grand opening/ 5,000.00
Blessing of the
store
Business 12,915.00
Registration/
Licenses/
Sanitary Permit/
Health clearance
BIR Registration 500.00

Total pre-operating cost P97, 465.00

Two basic production planning strategies to address demand

fluctuations:

Strategy Description
Maintains a stable workplace at a
constant production rate with the
shortages and surpluses being
Level Production absorbed by and of the following:
Strategy  Changing the inventory
levels
 Allow order backlogs
 Promotional Activities

Important considerations of Level Production Strategy:

Specific Methods Costs

Produce in earlier period Cost of holding inventory.
and hold until product is
needed.
Offer to deliver the Delay in receipt of
product or service later, revenue, at minimum; may
when capacity is lose customers.
available.
Exert special promotional Advertising cost,
activities to shift the discounts, other
demand from slack period promotional programs.

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B. Management Team

The proponents will likewise supervised by a general

manager of the business and lead the business,

Employee Job Description Job

Salaries
Qualification

General A general manager Must have at P20,000

Manager is an executive who least a monthly
has overall bachelor’s
responsibility for degree in
managing both the business
revenue and cost management or
elements of a a related
company’s income field.
statement, known as
Must have a
profit and loss
leadership
responsibility.
skills, time
Frequently, the
management,
general manager is
and good in
responsible for
budgeting.
effective planning,
delegating, Must have at
coordinating, least two to
staffing, three years of
organizing and experience.
decision making to
attain desirable
profit making
results for an
organization.

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C. Personnel Plan

The partnership will be hiring a Cashier/Accountant

and three (3) production worker– depending on the

demand of the product. The higher the demand may lead

in highring an additional worker. We have factored in

these salaries into our forecasts. If we do bring on

employees there will be extensive training required

to ensure that our product taste and texture is

always consistent.

Employee Job Description Job

Salaries
Qualification

Cashier/1. Responsible in Must be a P15,000

Accounting tracking sales, Business monthly
managing inventory Administration
or making payroll, Graduate.
process payments Must have a
made with background in
cash, checks, accounting
credit cards, and practice and
debit cards. Must have an
ensure that there excellent
is enough cash in customer
the cash drawer interaction
and skills. Able
2. maintain correct to stand for
cash balances at extended

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cash registers periods.

The role of the Must be Minimum

Production production is to atleast a High wage of
Worker support the general School or P360 per
manager in ensuring TESDA Graduate laborer
the smooth with and worked
functioning of the experienced in for a
business. The making process standard
production worker food. eight (8)
is responsible for: hours of
Ensuring products work a day
are made with
careful diligence
and care, accuracy
and precision;
Strategic sales
techniques and
interpersonal
effectiveness.

D. Vision Statement

That our product, Veggienisa will not only be known

in the country but will also be recognized globally

through its taste and health benefits.

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E. Mission Statement

The researchers’ aim will not only to gain profit but

also to bring people a fresh look of native Filipino food.

F. Organizational Chart

PARTNER A PARTNER B PARTNER C PARTNER D

(Manager)

Production
Cashier/ Worker
Accountant

CUSTOMERS

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Chapter 5

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

This chapter presents the summary of finding,

conclusions and recommendations.

Summary of Findings

The significant findings were summarized as follows:

1. Profile of the Participants

1.1 Gender - Majority of the participants are female.

1.2 Age - Majority of the participants are within the

range of 21-30 years old.

1.3 Civil Status - Majority of the participants are

single.

2. How many customers are interested in buying Longganisa

made up of vegetables?

It is viewed that 64% of the household consumers are

willing to buying a Longganisa made up of vegetables due

to curiosity. It is reflected in the consumers' behaviour

regarding their willingness to try innovative food

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products. They tend to consume products which are new in

the market that like in UK, consumers were not the most

inclined to adopt innovations, but they were not afraid of

new foods either. The results provide strategic and unique

information about consumers for the food industry, aiming

at supporting the development of innovative food products.

(Barcellos, Aguiar, Ferreira, Vieir 2009).

3. What do these individuals consider in buying

Veggienisa?

It is concluded that 41.94% of the respondents

consider the price in buying a Veggienisa is the taste

that worth P101-150 per kilo. It is noted that majority of

the consumers can consume ½ kg of Longganisa once a week.

Consumer nowadays perceives alternative products that are

lesser cost with greater benefits. High food prices can be

a barrier to healthy eating if food products are perceived

as expensive and the consumers are not willing to accept

the higher prices. Food price attitudes were hypothesized

to have an impact on consumers’ willingness to pay

judgements and their willingness to buy premium-priced

food products. Feelings of fairness or unfairness might be

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a core element of food price attitudes that greatly

affects purchasing power of the people. (Ollila 2011).

4. Marketing plan. To promote the business, it will be

offered to the consumers in a very affordable price which

is less than the cost of a Meat process Longganisa. Social

media campaigns will also be extensively utilized where

promotional posts (photos and videos) shall be used to

enlighten the millennial crowds and other netizens. Also,

discounts will be given to the first 50 buyers of the said

product.

5. Operational and Production plan. The business will run

and operate 7 days a week since production of Veggienisa

has a constant demand in the market place. This is based

on the environment scanning that was conducted by the

researchers. The business will produce Veggienisa product

in a per kilo basis every day since the production of

vegetables is on its short perishable life. Furthermore,

the business assume that there will be a .05 ending

inventory in terms of raw materials.

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6. Management plan. The business will be managed by the

partnership having partner B as the standing manager. The

annual revenue of the business, based on its financial

report is high. Thus, close monitoring must be observed.

7. Financial plan for a Veggienisa product

7.1 LIQUIDITY

The Current Ration of the business of the entity

is inclining. It implies that business is

efficient to squeeze profit from its assets. The

quick Ratio of the business of the entity

suggests high liquid assets are sufficient to

cover up current liabilities. Current cash debt

coverage of the business entity, the net cash

provided by operating activities are in good

standing against the average current

liabilities.

7.2 PROFITABILITY.

A. The business entity’s profit margin implies

that the business will grow steadily. The return

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of assets of the business entity is declining

due to the high amount of net cash inflow of the

company which implores that income being

generated using its assets inefficient. The

business entity’s return on equity as per

implication, the business will be generating a

substantial amount of profit from the partners’

investment.

8. Feasibility of establishing a Veggienisa product

A. Breakeven Analysis. The business is capable of

generating profit from its operation throughout its

five years of business as evidenced by the derived

breakeven sold in kilograms amounting 3,965 in first

year, 3816.89 in the second year, 3650.54 in the

third year, 3519.37 in the fourth year, and 3364.50

in the fifth. The actual units sold amounting 13575,

16848, 20910, 25952 and 32209 for year 1, 2, 3, 4,

and 5 respectively.

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Conclusion

Based on the findings of the study, the following

conclusions were drawn:

1. Longganisa is widely consumed by Tuguegaraoeṅos and

most consumers consider convenience in cooking.

Most of those who are not willing to eat Veggienisa

are carnivorous.

2. As the market is in constant demand of Longganisa

products, a 7-day per week operation in business is

needed to keep up with the demands.

3. Veggienisa is not known to the locals. The

knowledge should be spread in order to establish

the business.

4. A P100,000 capital is needed in establishing the

business

5. The product is feasible for its five years of

operations, earning an average of 13.38% of its

gross profit margin.

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Recommendation

As a result of the findings of this study the

following are the recommendations of the researchers:

1. Marketing. The Veggienisa product must be sold in

seven days a week to maximize the revenue. Research

and Development must be conducted annually to meet

the demand and trends in the dynamic market. The

promotion of the product must be made through

social media. Also, Since the Veggienisa product is

a newly innovated product, its benefits must be

included in the promotion or in the packaging. The

telephone number of the business must also be added

to the packaging design for consumers’ inquires and

future sales.

2. Operational and Production. Creating a partnership

in the markets or sari-sari stores in Tuguegarao

will be the best way to increase the demand of the

products. The product in processing and ingredients

must be considered. Various kinds of flavors must

be added to the product to satisfy the different

taste of the consumers.

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3. Management. A proper training must be conducted

atleast a month prior to the commencement of the

business for the workers, to assure the quality is

in accordance to what it should be. Business

expansion should be established after years of

profiting.

4. Financial. The Veggienisa must be sold equal or

lower than 132 based on the weighted preferred

price of the consumers, to maximize the consumers

willing to pay.

5. Feasibility. To solve the declining return of

assets ratio, the business must invest its unused

cash to purchase new equipment and machineries that

will definitely help the production of the product

more productive and efficient.

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 St. Paul University Philippines
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Chapter 6

FINANCIAL ASPECT

Financial Assumptions

 Population represents the number of household unit in

Tuguegarao City and increases by 1.0257% every year

 Market share increases by 10% every year

 There will be three hundred forty four (344) working

days in a year and a total of three hundred sixty

five (365) days a year. Twenty-one (21) days are

allotted for holidays, day-offs, leave and

calamities.

 Total Kilogram Consumed for Year 1 is the weighted

Number of Kilos consumed on a weekly basis.

 Annual Consumption of Longganisa in Kilogram

increases by 10% every year

 Budgeted Sales in Kilogram = Target Market x Annual

number of Kilogram Consumed

 There will be no beginning and ending work in process

inventory.

 No Beginning Inventory for Year 1 and the Ending

inventory is 5% annually for all non-perishable raw

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materials and all perishable resources will be put in

to process and repurchase every year.

 The Suggested Retail Price (SRP) of each items used

in production increases by 5% due to the Tax Reform

Acceleration Inclusion or the TRAIN LAW.

 The Standard Number of Hours Worked per kilogram is

(0.33 hrs) or twenty (20) minutes

 A minimum wage of P360 per laborer and worked for a

standard eight (8) hours of work a day.

 An increased in number of laborers is directly

proportional to the increase of production in the

current year.

 Laborers wage will increase by 2% annually. This is

based on the net income of the business will increase

annually.

 Markup on Selling Price is 25% of Product Cost.

 Depreciation is computed using the straight line

method of depreciation. Salvage value is five percent

(5%) of cost.

 Kitchen tools are depreciated as one and has an

estimated useful life of 5 years.

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 The refrigerator has an estimated useful life of 15

years.

 The motorcycle has an estimated useful life of 20

years.

 The Kitchen Sink Set has an estimated useful life of

25 years.

 The Wooden Long Table has an estimated useful life of

15 years.

 The Stackable Plastic Chair has an estimated useful

life of 20 years.

 The Cabinet for Kitchen has an estimated useful life

of 25 years.

 The Electric fan has an estimated useful life of 10

years.

 Partner A, B, C, and D will contribute P30, 000, P15,

000, P20, 000 and P35, 000 cash respectively. Partner

C will serve as a managing partner and will receive a

salary of 13,500 monthly.

 Partnership Profit and Losses will be allocated each

year according to the following plan:

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 Interest of 10% will be accrued by each partner

based on the Beginning Capital for the Year.

 In Managing the partnership, Partner C is to

receive for a bonus equal to 20 percent after

interest, salaries, and bonus.

 Any remaining profit or loss will be divided

equally between the four partners.

 Partner A, C, and D is allowed to withdraw 5% of

their beginning capital every year.

 Tax expense will be 30% of Partnership’s net income

before tax of the current year.

 Advertising Expense is assumed to decrease by P500.00

annually until it becomes zero.

 A monthly Rent Expense of P10, 000 will be

recognized.

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