Summary of the Questions and Recommendations of Ms.

Alexa Apostol

1. The only reference is Bob Chili Garlic in Oil?

The proponents considered adding Sta. Barbara Gourmet from Sta. Barbara and JPL

Ventures from Aguilar, Pangasinan as reference.

The proponents interviewed Mr. Philip Tiangson, owner of Bob Chili Garlic in Oil, in

Casulming Lingayen, Pangasinan. Accordingly, they are only producing chili garlic oil seasonally

when the siling labuyo is at its lowest price of about Php 50.00 per kilogram. They usually

produce their products once in a year in months of January to March. During their last

production, Bob Chili Garlic in Oil invested Php 11,000.00 for the production and processing of

20 kilograms of raw chili including the bottling, materials used and labor. Bob Chili Garlic in Oil

produced 250 food jars of chili garlic oil. Each food jar weighs 237 grams which is sold at Php

120.00 to Php 150.00. Therefore, the supply of Bob Chili Garlic in Oil is 59.25 kilograms of chili

garlic oil.

In addition, according to Ms. Monica Balaes, Sales Assistant of Sta. Barbara Gourmet,

the business is producing chili garlic oil in every point where their customers demand for the

products. Thus, Sta. Barbara Gourmet’s supply is always distributed. For their last production,

they produced 100 food jars of chili garlic oil. Each food jar contains 4 ounces or equivalent to

113.40 grams. Accordingly, Sta. Barbara’s Gourmet’s supply is 11.34 kilograms of chili garlic oil.

On the other hand, production of JPL Ventures, producer of chili oil in Aguilar,

Pangasinan, includes 400 boxes of chili oil. Each box contains 24 food jars. For each food jar,

there are 120 grams. With the production, the supply is 1,152 kilograms. Considering the three

producers’ production mentioned above, the total supply of chili oil is 1,152 kilograms while the

total supply of chili garlic oil is 70.59 kilograms. Refer to Supply on page 23 to 24.
2. Did you visit the plantation of your suppliers?

The proponents went to Urdaneta City and interviewed the proposed suppliers of the

business but the plantations of the suppliers are not visited. These suppliers were Federico

Zamora, Lilia Zamora, Edgar Zamora, Bobby Padilla, Angel Delos Santos and Hilda Halog. To

check if the harvest of the suppliers could support the entire production of the company, the

proponents asked the suppliers and two of them disclosed the quantity of their harvest.

Angel Delos Santos

Mr. Delos Santos owns a plantation with an area of 1,000 square meters located in Brgy.

Mancamaliran Urdaneta City, Pangasinan. Mr. Delos Santos plants siling labuyo and siling

panigang. According to Delos Santos (2017), the plantation has a total harvest estimated at

approximately 120 kilograms of siling labuyo in a year. He sells his produced products at a

price ranging from Php 70.00- Php 80.00 as well. The siling labuyo will be procured by Chili

Royale directly from the plantation. Refer to Suppliers’ Information on page 31.

Bobby Padilla

Mr. Padilla owns a half hectare of sili plantation located in Lipay Villasis, Pangasinan.

Mr. Padilla plants siling labuyo and siling taiwan. The price of Mr. Padilla’s siling labuyo is

ranging from Php 70.00 to Php 80.00. The siling labuyo will be procured directly from the

plantation. Accordingly, every five days is the harvest time of the siling labuyo in Mr. Padilla’s

plantation. For each harvest, 20 kilograms of siling labuyo are produced. In a year, the total

harvest is estimated at 1,440 kilograms. Refer to Suppliers’ Information on Page 32.

3. Are your raw materials proven to be organic?

As stated by Ms. Wilma Valdez, Secretary of Organic Farming/Rice Corn Vegetables

Grower Association, these suppliers are members of the association. However, these suppliers

do not have certificates to confirm their plantation as organic but they have certificates from

seminars about organic farming. Refer to SWOT Analysis (3 rd Strength) on page 17.
4. What is your advantage from other producers of chili oil and chili garlic oil?

Convenient packaging of Chili Condiment

The usual chili oil and chili garlic oil were offered in food jars and were sold at high

prices ranging from Php 120.00 to Php 180.00 as observed by the proponents in supermarkets

in Dagupan City and Lingayen.

As a marketing strategy considering the high price of chili oil and chili garlic oil in food

jars, Chili Royale decided to offer its products not only in food jars but also in sachets for it to be

more affordable to customers who have tight budgets and for it to be available to customers

who only need small volume of the products. Refer to 2nd Strength on page 17.

Condiments will be made from organic ingredients

The products of Chili Royale will be made from organic ingredients like siling labuyo and

garlic coming directly from the plantation in Urdaneta City, Villasis and Bautista, Pangasinan.

The suppliers of raw materials contracted by the proponents promote organic farming by

cultivating their produced crop through using natural fertilizers and avoid using chemicals which

can have negative impact to the people’s health. As stated by Ms. Wilma Valdez, Secretary of

Organic Farming/Rice Corn Vegetables Grower Association, these suppliers are members of

the association. However, these suppliers do not have certificates to confirm their plantation as

organic but they have certificates from seminars about organic farming. Refer to 3rd strength on

page 17.

5. The budget for legal requirements, kitchen tools, equipment and other facilities is not

enough.

The proponents considered a new estimation of the allotment of the initial investment.

The Php 550,000.00 of the capital will be invested to the Sealing Packaging Machine for

the sachets and kitchen tools. The proponents allotted Php 50,000.00 for compliance expenses

of the legal requirements of the business. Utilities expenses are estimated to be Php 10,000.00

allotted for 2 months.

NAME NO. OF UNITS UNIT COST TOTAL
Rental Fees 3 months Php 5,000.00 per month Php 15,000.00
Siling Labuyo 120 kilograms 80.00 per kilogram 9,600.00
Garlic 40 kilograms 120.00 per kilogram 4,800.00
Palm Oil 4 gallons of 20-liter 816.00 per gallon of palm 3,264.00
palm oil oil
Food Jars 20 boxes of 227 242.00 per box 4,840.00
grams food jars (24
pcs/box)
Sachets 10,000 pieces 0.63 per piece 6,300.00
Other necessary expenses (Label Execution, Microbial Test, Nutritional 80,000.00
Facts Analysis)

Expenses for Business and Legal Requirements (business permits such as 50,000.00
BIR, Barangay Clearance, Sanitary Permit, Mayor’s Permit, SEC
Registration Certificate and License to Operate)
Equipment (Sealing Packing Machine) and Kitchen Tools 550,000.00
Vehicle (Motorcycle with sidecar and its registration) 70,000.00
Utilities Expense (2 months water and electricity bills) 10,000.00
Renovation of Production Area (repainting of the production area’s walls 50,000.00
and cabinets, addition of sockets)
Free Cash (Incidental Expenses, gas allowance of vehicle and shipping 21,196.00
fees of sachets)
Total Php 875,000.00
Refer table to Company Background on page 7.

6. Testing such as microbial test and nutritional facts analysis should be included.

The proponents also allotted Php 80,000.00 for necessary product expenses of the

business like label execution, microbial test, nutritional facts analysis.

NAME NO. OF UNITS UNIT COST TOTAL

Rental Fees 3 months Php 5,000.00 per month Php 15,000.00
Siling Labuyo 120 kilograms 80.00 per kilogram 9,600.00
Garlic 40 kilograms 120.00 per kilogram 4,800.00
Palm Oil 4 gallons of 20-liter 816.00 per gallon of palm 3,264.00
palm oil oil
Food Jars 20 boxes of 227 242.00 per box 4,840.00
grams food jars (24
pcs/box)
Sachets 10,000 pieces 0.63 per piece 6,300.00
Other necessary expenses (Label Execution, Microbial Test, Nutritional 80,000.00
Facts Analysis)

Expenses for Business and Legal Requirements (business permits such as 50,000.00
BIR, Barangay Clearance, Sanitary Permit, Mayor’s Permit, SEC
Registration Certificate and License to Operate)
Equipment (Sealing Packing Machine) and Kitchen Tools 550,000.00
Vehicle (Motorcycle with sidecar and its registration) 70,000.00
Utilities Expense (2 months water and electricity bills) 10,000.00
Renovation of Production Area (repainting of the production area’s walls 50,000.00
and cabinets, addition of sockets)
Free Cash (Incidental Expenses, gas allowance of vehicle and shipping 21,196.00
fees of sachets)
Total Php 875,000.00
Refer table to Company background on page 7.

7. Why there is a need to have a vehicle despite your target market is within your

proposed area?

Instead of investing on car as a vehicle for delivery purposes, the proponents changed it

to a motorcycle and sidecar to reduce cost and allocated the other investments on a Sealing

Packing Machine that will be used for the packaging of condiments on sachets.

The business will be located in Namolan West Lingayen, Pangasinan. It will be strategic

to locate the business in the said location since it is situated in Lingayen, which is one of the

target markets of the business specifically supermarkets like CSI Warehouse Club, Magic,

Public Market of Lingayen and Golden Mami House. The location of the business is a 14

kilometre drive to Dagupan City, another target market of the business specifically Malimgas

Market, Product Center, supermarkets like CSI Lucao and Magic; and restaurants like Golden

Mami House, Eastern Dim–Sum House and Mang Peping. Refer to Company Background on

page 6.

NAME NO. OF UNITS UNIT COST TOTAL

Rental Fees 3 months Php 5,000.00 per month Php 15,000.00
Siling Labuyo 120 kilograms 80.00 per kilogram 9,600.00
Garlic 40 kilograms 120.00 per kilogram 4,800.00
Palm Oil 4 gallons of 20-liter 816.00 per gallon of palm 3,264.00
palm oil oil
Food Jars 20 boxes of 227 242.00 per box 4,840.00
grams food jars (24
pcs/box)
Sachets 10,000 pieces 0.63 per piece 6,300.00
Other necessary expenses (Label Execution, Microbial Test, Nutritional 80,000.00
Facts Analysis)

Expenses for Business and Legal Requirements (business permits such as 50,000.00
BIR, Barangay Clearance, Sanitary Permit, Mayor’s Permit, SEC
Registration Certificate and License to Operate)
Equipment (Sealing Packing Machine) and Kitchen Tools 550,000.00
Vehicle (Motorcycle with sidecar and its registration) 70,000.00
Utilities Expense (2 months water and electricity bills) 10,000.00
Renovation of Production Area (repainting of the production area’s walls 50,000.00
and cabinets, addition of sockets)
Free Cash (Incidental Expenses, gas allowance of vehicle and shipping 21,196.00
fees of sachets)
Total Php 875,000.00
Refer table to Company Background on page 7.

8. Good design for company name but not appealing product label.

The proponents changed the label of the products. The label below is now the new ones.

The label includes the name of the product which is Hot Shots Chili Oil. Other

information such as the nutritional contents, benefits, ingredients and contact number of the

business will be included at the back of the packaging.

Refer figure to Product Description from page 11.

 The label design will be put in the center of both food jar and sachet. The design includes

the name of the product which is Hot Shots Chili Garlic Oil. Other information such as the

contact number, benefits, ingredients and nutritional value of the product will be provided at the

back of the packaging.

Refer figure to Product Description on page 12

9. Renovation of the proposed production area should be in placed to conform to CGMP

and FS standards.

The proponents considered allotting a part of the initial investment for renovation.

The renovation of the production area is estimated to be Php 50,000.00.

NAME NO. OF UNITS UNIT COST TOTAL

Rental Fees 3 months Php 5,000.00 per month Php 15,000.00
Siling Labuyo 120 kilograms 80.00 per kilogram 9,600.00
Garlic 40 kilograms 120.00 per kilogram 4,800.00
Palm Oil 4 gallons of 20-liter 816.00 per gallon of palm 3,264.00
palm oil oil
Food Jars 20 boxes of 227 242.00 per box 4,840.00
grams food jars (24
pcs/box)
Sachets 10,000 pieces 0.63 per piece 6,300.00
Other necessary expenses (Label Execution, Microbial Test, Nutritional 80,000.00
Facts Analysis)

Expenses for Business and Legal Requirements (business permits such as 50,000.00
BIR, Barangay Clearance, Sanitary Permit, Mayor’s Permit, SEC
Registration Certificate and License to Operate)
Equipment (Sealing Packing Machine) and Kitchen Tools 550,000.00
Vehicle (Motorcycle with sidecar and its registration) 70,000.00
Utilities Expense (2 months water and electricity bills) 10,000.00
Renovation of Production Area (repainting of the production area’s walls 50,000.00
and cabinets, addition of sockets)
Free Cash (Incidental Expenses, gas allowance of vehicle and shipping 21,196.00
fees of sachets)
Total Php 875,000.00
Refer table to Company Background on page 7.

10. Please provide floor plan with process drawn to scale lay-out.

Refer figure to Location Profile on page 16.

11. Invest in research for other references.

The proponents interviewed Mr. Julius Viray, Project Assistant at Department of

Science and Technology Lingayen; Mr. John Paul Abaoag, owner of JPL ventures; Mr. and Mrs.

Tiangson, owners of Bob Chili Garlic in Oil; Ms. Monica Balaes, sales assistant of Sta. Barbara
Gourmet; Ms. Wilma Valdez, Secretary of Organic Farming/Rice Corn Vegetable Growers

Association Incorporation in Urdaneta City; Mr. Hans Christian Ramos, Negosyo Center

Councilor of Department of Trade and Industry-Pangasinan; and the suppliers of raw materials
Summary of the Questions and Recommendations of Ms. Michelle Liwanag

1. Where is the chili plantation of the suppliers located?

The plantations of suppliers are located in Urdaneta City and Villasis, Pangasinan.

2. 250 jars produced per year? A jar is 237 grams each? Discuss probable income.

The proponents interviewed Mr. Philip Tiangson, owner of Bob Chili Garlic in Oil, in

Casulming Lingayen, Pangasinan. Accordingly, they are only producing chili garlic oil seasonally

when the siling labuyo is at its lowest price of about Php 50.00 per kilogram. They usually

produce their products once in a year in months of January to March. During their last

production, Bob Chili Garlic in Oil invested Php 11,000.00 for the production and processing of

20 kilograms of raw chili including the bottling, materials used and labor. Bob Chili Garlic in Oil

produced 250 food jars of chili garlic oil. Each food jar weighs 237 grams which is sold at Php

120.00 to Php 150.00. Refer to supply on page 23.

According to Mr. Philip Tiangson, owner of Bob Chili Garlic in Oil, with Php 11,000

amount of capitalization, 250 food jars of chili garlic oil can be produced each food jar weighing

237 grams. According to Mr. Philip Tiangson, owner of Bob Chili Garlic in Oil, their business’

return on investment (ROI) is dependent on the season ranging from 70 to 80 percent for a one-

time annual production. Refer to threats of new entrants on page 27.

3. Discuss the partners’ initial investment wherein one partner will invest a vehicle

worth Php 500,000.00.

Instead of investing on car as a vehicle for delivery purposes, the proponents changed it

to a motorcycle and sidecar to reduce cost and allocated the other investments on a Sealing

Packing Machine that will be used for the packaging of condiments on sachets. Aside from that,

the proponents considered changing the investment of each partner.

The partners will be contributing Php 125,000.00 each in the business. Refer to

Company background page 6.

NAME NO. OF UNITS UNIT COST TOTAL
Rental Fees 3 months Php 5,000.00 per month Php 15,000.00
Siling Labuyo 120 kilograms 80.00 per kilogram 9,600.00
Garlic 40 kilograms 120.00 per kilogram 4,800.00
Palm Oil 4 gallons of 20-liter 816.00 per gallon of palm 3,264.00
palm oil oil
Food Jars 20 boxes of 227 242.00 per box 4,840.00
grams food jars (24
pcs/box)
Sachets 10,000 pieces 0.63 per piece 6,300.00
Other necessary expenses (Label Execution, Microbial Test, Nutritional 80,000.00
Facts Analysis)

Expenses for Business and Legal Requirements (business permits such as 50,000.00
BIR, Barangay Clearance, Sanitary Permit, Mayor’s Permit, SEC
Registration Certificate and License to Operate)
Equipment (Sealing Packing Machine) and Kitchen Tools 550,000.00
Vehicle (Motorcycle with sidecar and its registration) 70,000.00
Utilities Expense (2 months water and electricity bills) 10,000.00
Renovation of Production Area (repainting of the production area’s walls 50,000.00
and cabinets, addition of sockets)
Free Cash (Incidental Expenses, gas allowance of vehicle and shipping 21,196.00
fees of sachets)
Total Php 875,000.00
Refer table to Company Background on page 7.

4. Vision and Mission are okay.

The proponents remain on the same vision and mission statements.

5. Add to target clientele restaurants for sachet products like pizza parlors.

The proponents added some restaurants to target markets.

The business will be located in Namolan West Lingayen, Pangasinan. It will be strategic

to locate the business in the said location since it is situated in Lingayen, which is one of the

target markets of the business specifically supermarkets like CSI Warehouse Club, Magic,

Public Market of Lingayen and Golden Mami House. The location of the business is a 14

kilometre drive to Dagupan City, another target market of the business specifically Malimgas

Market, Product Center, supermarkets like CSI Lucao and Magic; and restaurants like Golden
Mami House, Eastern Dim–Sum House and Mang Peping. Refer to Company Background on

Page 6.

6. Did you conduct a survey? Discuss participants.

Chili Royale conducted survey in the areas of Lingayen and Dagupan City on September

23, through September 24, 2017. Proponents surveyed 140 randomly selected respondents

composed of 64 males and 76 females whose ages are in between 13–65 years old. Refer to

Demand on page 24.

7. Production Area.

The production area is composed of one vacant room that has an area of 8.246 square

meters, a kitchen that has an area of 8.36 square meters and a packing area that has an area of

about 15.6446 square meters. The vacant room will be used as a storage room for the finished

goods inventory which are chili oil and chili garlic oil and raw materials needed. On the other

hand, the kitchen will be used in the processing of chili oil and chili garlic oil. In the kitchen,

there are cabinets that will be open for the storage also of raw materials needed. The packing

area will be allotted for placing the sealing packing machine that will be used for packing the

chili oil and chili garlic oil in sachets and the area will also be used for packing of the chili oil and

chili garlic oil in food jars. The said area also has cabinets that can be open for the storage of

finished goods inventory and kitchen tools. Refer to Location Profile on page 14.

8. Suppliers are from plantation or resellers?

The supplies or raw materials will be coming directly from the plantation of the farmers.