Business Start-up: “Tapiocalicious”

A Project Proposal

Presented to Esterlina B. Gevera, CPA, MBA

Dean of the College of Accounting Education

In Partial Fulfillment of the

Requirements for SYN101

Second Term First Semester S.Y. 2019-2020

Proponents:

Chelsi Apostol

Cydric Paul Aranas

Rey Naquila Cabilan

Darlene Malalay Cambangay

Karren Kaye Isugan

RATIONALE

A Filipino merienda would not be complete without its complementary drink that
answers the quench for thirst. Many students line up in the canteen and even outside at school
to grab a drink that offers different flavors. Some of them enjoys soft drinks as ways to
satisfy their cravings for cold and sweet. No doubt why refresher drinks businesses grow
nowadays especially at the school where students love something sweet and cold.
Majority of the Filipinos feel to have great refresher drinks under merienda and even
after meals. However, some business owner fails to consider the nutritional value of the
products and because of the love for sweet and cold drinks; consumers fail to evaluate the
benefits of the product they consume.
Philippines have offered many fruits that were used as an ingredient in different
delicacies. Mango is one of the popular fruit of the country because of the taste and known to
be blended with many dessert recipes as well as mango drinks. Not just about the sweet taste
that popularized the mango, it also offers great source of vitamin A and C that is beneficial to
our body.
Some nutritionists called avocado fruit as super fruit because of its benefits offered.
Avocado is healthy for the heart and great for vision. It has vitamins C, E, K and B6.
“Smells like hell and taste like heaven” were durian fruit lover describes of what durian
is. Aside from its bad smell like “ODOR”, durian is also most popular fruit in the Philippines
making southern Mindanao known produced especially in the season of August to
September. It contains great source of vitamins C, B6 and vitamin A. It also contains
nutrients such as water, protein and beneficiary dietary fiber.
Tapiocalicious fruit drinks are being made as quencher drinks that satisfy cravings for
cold beverages. It offers and contains nutritional value that is primarily blended with fresh
fruits like mango, avocado and durian. Aside from the health benefits that we can get from
the product, it is also affordable where students can pay with a cheaper price.
OBJECTIVES
The key objectives of this business project are the following:
 To achieve at least 10% of Net Income based on Sales
 To determine the level of customer satisfaction by offering reasonable price and of
quality product, and providing good customer service
 To showcase the level of skills in the field of accounting, marketing and
management by being efficient and effective

BENEFICIARY
 Proponents. This will help the proponents enhance the knowledge and skills in
building business innovations and decision-making, which serve a good foundation in
operating a successful business.
 Entrepreneurs. This output will serve as a guide for them to grasp a better picture in
business planning to track their target market, assess their progress and development,
and gain additional business strategies.
 College of Accounting Education Faculty and Students. To contribute to the
wellness of the faculty members and accounting students by selling an accessible,
affordable and delicious drink.

METHODOLOGY
The following procedures will be necessary to execute the project:
a. Preparation of the product
i. Preparing a sufficient capital
ii. Buying the ingredients of the product
iii. Making and packaging the product
b. Selling/Marketing of the product
i. Selling the product and recording sales
ii. Distribution of survey / feedback form to customers
c. Survey interpretation
i. Tallying the response/comments of the customers
ii. Interpret the data gathered
d. Determination of the profitability of the project through computation of the rate of
return of investment (ROI)
 e. Financial Statement preparation (specifically Income Statement)
BUDGETARY REQUIREMENTS

BUDGETTED EXPENSES
Ingredients Quantity Price Total
Tapioca Pearls 1 kilogram Php100.00 Php100.00
Alaska Condensed Milk 2 cans ( 300mL) 54.50 109.00
Alaska Evaporated Milk 2 cans ( 370mL) 38.50 77.00
Nestle All Purpose Cream 1 can (250 mL) 60.00 60.00
Fresh Mangoes 1 kilogram 150.00 150.00
Durian 2 kilogram 100.00 100.00
Plastic Cup Container 100 pieces 200.00 200.00
TOTAL Php796.00

Cost per unit = Php 796/100 Selling Price = Php 7.96 x 1.50
= Php 7.96 per unit = Php 11.94 0r 12.00
Mark-up based on cost = 50%

ACTUAL EXPENSES
Ingredients Quantity Price Total
Tapioca Pearls 1 kilogram Php100.00 Php100.00
Doreen Condensed Milk 3 cans ( 390mL) 33.45 100.35
Alaska Evaporated Milk 3 cans ( 370mL) 25.60 76.80
Nestle All Purpose Cream 1 can (250 mL) 58.00 58.00
Fresh Mangoes 1 1/2 kilograms 80.00 120.00
Durian 2 kilograms 30.00 60.00
Plastic Cup Container 100 pieces 184.00 184.00
TOTAL Php699.15

Cost per unit = Php 699.15/100 Selling Price = Php 6.99 x 1.50
= Php 6.99 per unit = Php 10.49 0r 10.00
Mark-up based on cost= 50%

EVALUATION
(1) To achieve at least 10% of Net Income based on Sales
Based on the conduct of the project, the proponents of the study did not achieve this
certain objective due to their loss commencing this business project.
(2) To determine the level of customer satisfaction by offering reasonable price and quality
of the product, and providing good customer service
In order to determine the level of customer satisfaction, the proponents formulated a
survey questionnaire and the interpretation follows:
Breakdown of respondents’ rating
5 4 3 2 1 Total Mean
Price of the product 65 5 5 0 0 75 4.80
Taste of the product 70 5 0 0 0 75 4.93
Packaging of the product 60 10 0 5 0 75 4.67
Overall quality control 55 15 5 0 0 75 4.67
Provide good customer service 65 10 0 0 0 75 4.87
Customer’s overall satisfaction 50 25 0 0 0 75 4.67
TOTAL 365 70 10 5 0 450 4.77
Note: A total of 75 respondents
Range Verbal Description Interpretation
4.21 - 5.00 Very satisfactory This indicates that the
following are very
satisfactory
3.41 - 4.20 Satisfactory This indicates that the
following are satisfactory
2.61 - 3.40 Neutral This indicates that the
following are not
satisfactory but also not
unsatisfactory
1.81 - 2.60 Unsatisfactory This indicates that the
following are unsatisfactory

1.00 - 1.80 Very unsatisfactory This indicates that the

1. Price of the product

The mean of the evaluation result as to the price of the product is 4.80 (very
satisfactory). The derivation of the price of the product was explained in the previous
discussion in the budgeted expenses versus the actual expenses. The selling price is
computed accordingly with the basis on the actual expenses with a mark-up based on cost
 with a rate of fghfj for the number of desired products to sell. For the consumers, the price
is appropriate to the product that we had offered.

2. Taste of the product

The mean of the evaluation result as to the taste of the product is 4.93 (very
satisfactory). As the proponents offered varieties of product, the consumers were delighted
by its sweet, creamy, tasty and delicious flavor of the tapiocalicious.

3. Packaging of the product

The mean of the evaluation result as to the packaging of the product is 4.67 (very
satisfactory). For the consumers, the proponents’ idea of putting the tapiocalicious
individually in a small, round, transparent disposable cup with a lid was delectable and
satisfying.

4. Overall quality of product

The mean of the evaluation result as to the overall quality of product is 4.67 (very
satisfactory). This encompasses the price, the taste, the packaging, and other factors that
the consumers perceive upon the product that the proponents had offered.

5. Provide good customer service

The mean of the evaluation result as to the overall quality of product is 4.87 (very
satisfactory). This shows that the proponents’ displayed a friendly approach to their target
market. Their skills in accommodating or handling their client is pleasing and inviting.

6. Customers’ overall satisfaction

The mean of the evaluation result as to the overall quality of product is 4.67 (very
satisfactory). This shows that the proponents’ were able to meet their clients’ needs.

Taken as a whole, the average mean of all the six factors is 4.77. This shows that the
totality of the product and services of the proponents is very satisfactory to the consumers.

(3) To showcase the level of skills in the area of accounting, marketing and management
by being efficient and effective.
Accounting
In the conduct of this project, the proponents were able to showcase their accounting
skills by preparing financial statement specifically the income statement to determine the
profitability of the product or the business that they proposed.

Marketing
In the commencement of the project, the proponents were able to display their marketing
skills through informing and calling the attention of their respective clients during the time of
selling their product. The proponents also innovate a new flavor that can add up to the
curiosity of the customer to purchase the tapiocalicious. In general, the proponents are able to
attract and influence the customer to buy the product.

Management
They based their price from their budgeted expenses (as presented in the budgeted vs.
actual expenses tables) in which they arrived in a decision to put a mark-up based on cost of
50%. Their cost per unit is Php 3.52 and based from their mark-up they were able to reach a
decision to set their price to Php 5.00 in which they expect to generate a gross profit of Php
1.48 per unit. The proponents decided to put their mark-up on this rate for they are expecting
other expenses that will occur during the process of preparing the product.
In addition, due to some fluctuations in prices and for being resourceful of the
proponents to look for stores who sell raw products, the proponents have incurred lower
actual expenses. Instead of a budgeted expense of Php 635.00, they actually incurred Php
588.00 which has a difference of Php 47.00 or 7.40% lower than the budgeted expenses. As a
result, they have only generated a gross profit of Php 2.21 per unit or 79.21% based on cost,
which is greater than .73 or 6.70% than the budgeted. However, the price that they have set,
though only creates a greater gross profit than the budgeted, was able to cover the other
expenses they expected to incur and still reached to a net income.
In conclusion to this, the proponents exercised their technical skills to increase the sales
and they also performed techniques on how to lower the cost and expenses to be incurred.
With that they achieved and determined a net profit that is bigger than they have forecasted.

Conceptual Skills
 It is a vital skill that the proponents must possess in doing this project. It is refer to the
ability of a proponent to think, conceptualize and visualize abstract and complex situations.
This means that the proponents can easily see the whole through analysis and determination
of different states. The proponents were able to visualize the entire work with ideas and the
relationships in each individual. It is their ability to understand and coordinate the full range
of business objectives and activities.
Conceptual skills are sometimes referred to as creative ability. These skills are being
enhanced by the proponents through creative thinking during the planning of the business.
These skills helped the proponent in understanding the business as a whole. The conceptual
skills help the proponents to look outside their primary goal. So, they make decisions that
satisfy the overall business goals. Using these skills the proponents able to plan and
organized well the business.

CONCLUSION

The heart of this synthesis lies on the proponents’ eagerness to fulfill the University of
Mindanao students’ craving for refresher drinks. The entire series of activities were of a clear
hit as the consumers of the product were satisfied. As a proponent had the interpretation of
the survey questionnaire/ feedback form, majority of the respondents had given a rate of “5”
as the highest point of indicator of satisfaction (A sample of the survey questionnaire is
attached in the “Appendix: B” portion of this report).

Upon the analysis of all data, we determined that we are able to achieve a net profit of
15.10% based on Sales. The business appears to be profitable thus, providing the business
with a sound earning on investment in the future. Furthermore, the proponents have a
thorough analysis on the given figures that were attained during the tally. The proponents
believed that they were able to achieve and reach the standards of the consumers, and
showcase their skills specifically the accounting, marketing, and how they manage the project
efficiently and effectively. It was clearly manifested in the interpretations of the survey
questionnaire/ feedback form (A thorough presentation was given at the “Interpretation
Analysis” section of this report). Also, there are some comments that were collected from
various customers:
1) “Makabitin sa kalami! – Durian Twist”
 2) “Good choice of the product – Mango Twist”
3) “Yum-yum!!! – Durian Twist”
However, despite of all the preparation and efforts of the proponents, there were still some
loopholes. Directly from the customers/consumers, they voiced out their suggestions for the
improvements of the proponents’ products. It includes the following:
1) “Daghanon ang unod ug ang sago – Durian Twist”
2) “No plastic spoon”
3) “Creamy but lacks sweetness – Mango Twist”
As a whole, the proponents were able to achieve the objectives set for this project.

RECOMMENDATION
The proponents recommend that there should be enough tapioca pearls in tapiocalicious,
seeing how customers reacted on the customers’ feedback form. In addition, the proponents
should add plastic spoon so that it will be easier for the customers to ingest tapiocalicious;
and, add more cream to the ingredient since the customers are craving for sweetness. Suffice
to say, the proponents should improve the mixing of the ingredients in order to arrive at the
perfect flavor of tapiocalicious that would meet the customers’ standard. As a result, the
customers would enjoy every taste of it. Moreover, the proponents should employ advertising
techniques that would help buyers recognize the product and for them to continue patronizing
it. By taking these suggestions, the proponents believe that these would help in increasing the
number of customers and the profit.

APPENDIX “A”

Tapiocalicious
Statement of Financial Performance
October 2019
 Price Quantity Total Amount

Sales Php10.00 100 pieces Php1000.00

Cost of Sales 6.99 100 pieces 699.00

Gross Profit 301.00

Other Expenses (Printing) 150.00

Net Profit Php151.00

Gross Profit Percentage based on Sales 30.10%

SURVEY QUESTIONNAIRE
Please rate our product and services according to the
factors below:
(Check below)
5- Very satisfactory
4- Satisfactory
3- Neutral
2- Unsatisfactory
1- Very unsatisfactory

Product’s Twist: _________________________________

Description 5 4 3 2 1

1. Price of the product

2. Taste of the product

3. Packaging of the
product
APPENDIX “B”
4. Overall quality of
product

5. Provide good
customer service

6. Customers’ overall
satisfaction

Comment/Suggestions:
APPENDIX “C”