“MARKETABILITY OF

MALUNGGAY AND SQUASH

ICE CREAM IN SAN PABLO
CITY, LAGUNA”
RATIONALE AND BACKGROUND
Ice cream businesses are spreading globally. This
is why the proponents choose to become one of the
manufacturing and retailers of Ice cream. The
proponents decided to come up with the product
name of Go Veggie Ice Cream because it can show the
qualitative and quantitative characteristics of the
product that will be produced.
 Go Veggie – because the products that will be
produced are made from vegetables.
 Ice Cream – because it is a combination of dairy
products and cream or ice cream itself.
THE OBJECTIVE OF THE STUDY
 General objective is to determine the marketability
of malunggay and squash ice cream in San Pablo City,
Laguna.
 To provide the consumer a product “malunggay and
squash ice cream” not only a highly pleasurable food
but also a healthy and unique flavor.
 To deliver a quality product in order to have the
customer return for satisfying, flavorsome treat, while
at the same time earning a reasonable return on the
initial investment.
PREPARATION
The procedures planned for the production of Go Veggie
Ice Cream starts with the drying of malunggay leaves under the
sun for 1 day. While the malunggay leaves were being dried up,
the squash will then be washed, peeled and braised.
Yuro powder mix, on the other hand, will be placed in hot
water to melt for about an hour. After all raw materials were laid
out, the ice cream maker machine will be prepared for the
making of the ingredients with the yuro, this procedure will last
about 30 minutes.
After the mixture thickens, it will then divided into two for
flavoring and malunggay and squash will be added to each
separate mixture. Mixtures will be placed in tube for freezing for
maximum of 3 hours and will be ready to serve in cone or plastic
cups.
PRODUCT DESCRIPTION
The business product which is ice cream is made
from a blend of some dairy products like condensed
milk, evaporated milk and skimmed milk with sugar
and coconut milk. Vanilla is also added for some
flavorings. Ice cream flavors have come a long way
from the malunggay and squash. The main ingredient
of ice cream is the vegetable and this raw material is
easy to find especially malunggay it can be seen in the
backyard. The availability and continuity of supply will
help the business to operate well.
STORE LOCATION
PLANT/FACTORY LOCATION
The business is located at the M. Basa St, San Pablo
City, Laguna. For the following reasons:
 The accessibility and availability of raw materials
sources.
 The availability of less expensive or moderately-priced
utilities such as power and water
 The proximity to disturbing products
PRODUCTION SCHEDULE
Sunday Monday Tuesday Wednesday Thursday Friday Saturday
Week 1
Distri buti on of fl yers Dai l y busi ness Dai l y busi ness Checki ng and mai ntenance Distri buti on of fl yers and Checki ng and mai ntenance
Dai l y busi ness operati on
Scheduled and “free taste” operati on operati on of equi pments “Free taste” of equi pments
Del i very of raw
Dai l y busi ness operati on Inventory of materi al s Dai l y busi ness operati on
Duties materi al s
Dryi ng of Mal unggay
Dryi ng of Mal unggay l eaves Dai l y busi ness operati on
l eaves
Dai l y busi ness
operati on
Sunday Monday Tuesday Wednesday Thursday Friday Saturday
Week 2
Drying of Malunggay Daily business Daily business Checking and maintenance
Drying of Malunggay leaves Daily business operation Daily business operation
Scheduled leaves operation operation of equipments
Daily business
Daily business operation Daily business operation
Duties operation
Sunday Monday Tuesday Wednesday Thursday Friday Saturday
Week 3
Delivery of raw Daily business Daily business Checking and maintenance
Daily business operation Inventory of materials Daily business operation
Scheduled materials operation operation of equipments
Drying of Malunggay
Daily business operation Daily business operation
Duties leaves
Daily business
operation
Sunday Monday Tuesday Wednesday Thursday Friday Saturday
Week 4
Daily business Daily business
Distribution of flyers Drying of Malunggay leaves Daily business operation Distribution of flyers Daily business operation
Scheduled operation operation
Drying of Malunggay Checking and maintenance
Daily business operation
Duties leaves of equipments
Daily business
Daily business operation
operation
Sunday Monday Tuesday Wednesday Thursday Friday Saturday
Week 5
Drying of Malunggay Daily business Daily business Checking and maintenance Conduct customer service
Daily business operation Inventory of materials
Scheduled leaves operation operation of equipments evaluation
Daily business
Drying of Malunggay leaves Daily business operation Daily business operation
Duties operation
Prepare income statement
and evaluation of the
Daily business operation performance of ice cream
plantation and its
employees
FACILITIES
 Mixing Plant
 Cold Storage/Refrigerator
 Drying Area
 Parking Area
 Packaging and Label Section
LABOR
Ten to fifteen personnel will be hired to work at the Go
Veggie Ice Cream plantation. There will be no full-time
employees in the plantation other than the management. The
management/owners are developing a program of orientation
and training which all employees must complete prior to starting
work. A written procedures and policies manual will be the
foundation for the said training. All employees will be trained to
perform all customer service, quality control, cleanliness and
sanitation procedures utilized by the plantation, and employees
will be expected to apply whatever they will be learning at the
training program.
The manpower of the plantation consists of the
management (owner), store/stall personnel, mixing plant
operators, storage and drying personnel, delivery personnel,
packaging and label operators, advertising and inventory
personnel.
MARKETING STRATEGIES
For our ice cream business to succeed, we need to market
and advertise it well, after all the more people who know about
our ice cream, the more customers we’ll have. The first way to
advertise our product is to put a sign outside our store, an
obvious way to advertise but still can help us promoting our
product. Social networking – starts a Facebook page for the
details of our product and store. Locally advertising includes
direct mailings, coupons/flyers. We will also offer a “FREE
TASTE” to consumers for them to try our product.
We also consider cross-promotion as marketing tactic for
our business. Another part of our marketing strategy for our ice
cream business is a competitive analysis. Describe which of our
main ice cream competitors in detail include information about
their business model, competitive strengths, weaknesses and
market share.
SELLING PRICE
 The cost of Go Veggie Ice Cream per cup is very
affordable. For only P15.00 everyone can enjoy its
veggielicious and creamy taste.
TARGET MARKET
Based on the Population of San Pablo City

99,556

149,334
Excess
Potential Target Market

The market size has been estimated by the

researchers. The growth forecasts for this market are
estimated at 60% or 149, 334 individuals of the San
Pablo City, Laguna.
TOTAL POTENTIAL DEMAND
Total Population of San Pablo City – 248, 890
Number of Respondents – 100

Survey Results

Would you eat vegetable flavored ice cream? 60% answered YES

How often do you eat ice cream? 86% answered once a week

How many ice creams do you usually eat? 95% answered 1 (one)
 SPC Population % Potential Market
248,890 x 60% = 149,334

Potential Market % Net Potential Market

149,334 x 86% = 128,478

Net Potential Market % Demand

128,478 x 95% = 122,054
PROJECTED SALES
Year Demand Increase (5%) Total Price Projected Sales
1 122,054.00 122,054.00 15 PHP 1,830,810.00
2 122,054.00 6,102.70 128,156.70 15 PHP 1,922,350.50
3 128,156.70 6,407.84 134,564.54 15 PHP 2,018,468.03
4 134,564.54 6,728.23 141,292.76 15 PHP 2,119,391.43
5 141,292.76 7,064.64 148,357.40 15 PHP 2,225,361.00

PROJECTED INCOME
Year 1 Year 2 Year 3 Year 4 Year 5
Net Income PHP 374,052.00 PHP 461,359.71 PHP 531,817.85 PHP 603,099.40 PHP 677,405.14
MARKETING ANALYSIS
Market Segmentation of Needs
There are two key market segments of needs for the Go
Veggie Ice Cream:
 Health – Go Veggie Ice Cream products may
contribute to ensure good health while enjoying their
favorite ice cream.
 New Business Opportunities – franchising the
business may provide stable and satisfying profit for
anyone who wants to start their own business.
 Market Trends
Two market trends combine to indicate a strong demand
for Go Veggie Ice Cream:
 Continuing demand of consumers for a low-cost ice cream
product which is also healthy, thus having vegetables as its
primary ingredient/s.
 The rise of different ice cream products is presenting
problems as it lacks the necessary health benefits as these
ice cream products may contain ingredients/substances
that is not healthy and harmful to the body, thus can
increase blood sugar that may eventually lead to diabetes.
FINANCIAL ASSUMPTIONS
 The total initial capital agreed upon by the partners is
₱225,000; where Aquino will contribute ₱125,000 and
Empemano will contribute ₱100,000. Any profits or
losses are divided equally.
 Sales will increase 5% annually.
 The ice cream maker machine and freezers are
purchased on account, payable every December for 5
years.
 Depreciated using Straight Line Method. Useful life as
follows:
Ice cream maker machine(no salvage value) 10 years
Freezers(no salvage value) 10 years
Computer(no salvage value) 10 years
Furniture and Fixtures(no salvage value) 5 years
 There are 12 employees during the first 5 years of operation.
 Labor cost incurred in installation of the equipment shall
be expensed outright. Repairs and maintenance cost will be
₱ 10,000 annually.
 ₱ 150, 000 is assumed to be withdrawn by the partners in
case of profits.
 It is assumed that the owner of the place is known to the
partners thus, the partnership is given the privilege to use it
as a usufruct (enjoying the use and benefits of one’s
property) within 5 years then buy it on the 6th year; neither
asset nor liability recorded during the first 5 years.
 Corporate tax of 30% per year will be used.
 Inventories are maintained at its level and 80% are
assumed to be expensed annually.
Estimated Cost
Equipment Qty Price Total
Ice Cream Maker Machine 1 40,000.00 40,000.00
Freezers 2 17,500.00 35,000.00
Computer Set Purchase 1 15,000.00 15,000.00
PHP 90,000.00

Furniture & Fixtures Qty Price Total

Stainless Containers 5 850.00 4,250.00
Kitchen Knife 2 80.00 160.00
Electric fan 2 900.00 1,800.00
Casserole 2 390.00 780.00
Table 2 340.00 680.00
Chairs 5 150.00 750.00
PHP 8,420.00

Cleaning Materials Qty Price Total

Broom & Dust Pan 4 105.00 PHP 420.00
Trash Can 1 100.00 100.00
Air Freshener 6 175.00 1,050.00
PHP 1,570.00
 Particulars Qty Price Total Per Month Annual
Yuro -kl 12 30 360 4 1440 12 17280
Skim Milk-kl 30 20 600 4 2400 12 28800
Canned Evaporated Milk 20 30 600 4 2400 12 28800
Canned Condensed Milk 55 42 2310 4 9240 12 110880
Sugar-kl 20 44 880 4 3520 12 42240
Coconut Milk 15 60 900 4 3600 12 43200
Vanilla 1 120 120 4 480 12 5760
Food Color (Orange and Green) 5 24 120 4 480 12 5760
Squash 5 75 375 4 1500 12 18000
Malunggay- 1/2 bundle 10 30 300 4 1200 12 14400
Nips-kl 4 150 600 4 2400 12 28800
Marshmallows-kl 4 120 480 4 1920 12 23040
Sprinkles-kl 5 150 750 4 3000 12 36000
Cups 3000 1 3000 4 12000 12 144000
Spoon 3000 0.14 420 4 1680 12 20160
TOTAL PHP 567,120.00
PROJECTED INCOME STATEMENTS
Go Veggie Ice Cream
Comparative Income Statement
For the year ended December 31, 201x
Year 1 Year 2 Year 3 Year 4 Year 5
Total Sales 1,830,810.00 1,922,350.50 2,018,468.03 2,119,391.43 2,225,361.00

Beginning Inventory 113,424.00 136,108.80 140,645.76 141,553.15

Purchases 567,120.00 567,120.00 567,120.00 567,120.00 567,120.00

Less: End. Inventory (Note 1) 113,424.00 136,108.80 140,645.76 141,553.15 141,734.63
Cost of Goods Sold 453,696.00 431,011.20 426,474.24 425,566.85 425,385.37

Gross Profit 1,377,114.00 1,491,339.30 1,591,993.79 1,693,824.58 1,799,975.63

Expenses:
Utilities (Note 2) 90,000.00 90,000.00 90,000.00 90,000.00 90,000.00
Installation Cost 5,000.00 - - - -
Legal Fees 500.00 - - - -
Repairs & Maintenance Cost 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Waste Disposal (Note 3) 1,570.00 1,570.00 1,570.00 1,570.00 1,570.00
Advertising 5,000.00 - - - -
Salaries (Note 4) 720,000.00 720,000.00 720,000.00 720,000.00 720,000.00
Depreciation Expense (Note 5) 10,684.00 10,684.00 10,684.00 10,684.00 10,684.00

Income Before Tax 534,360.00 659,085.30 759,739.79 861,570.58 967,721.63

Income Tax (30%) 160,308.00 197,725.59 227,921.94 258,471.17 290,316.49
Net Income PHP 374,052.00 PHP 461,359.71 PHP 531,817.85 PHP 603,099.40 PHP 677,405.14
PROJECTED BALANCE SHEETS
Go Veggie Ice Cream
Comparative Balance Sheet
For the year ended December 31, 201x

Particulars Year 1 Year 2 Year 3 Year 4 Year 5

Assets:
Current Assets
Cash (See Cash Flow) 157,892.00 292,250.91 515,215.80 813,091.81 1,185,999.47
Inventory 113,424.00 136,108.80 140,645.76 141,553.15 141,734.63
Noncurrent Assets
Furniture & Fixtures, net (Note 1) 6,736.00 5,052.00 3,368.00 1,684.00 -
Equipment, net (Note 2) 80,000.00 72,000.00 63,000.00 54,000.00 45,000.00
TOTAL ASSETS PHP 358,052.00 PHP 505,411.71 PHP 722,229.56 PHP 1,010,328.96 PHP 1,372,734.10

Liabilities & Equity:

Accounts Payable (Note 3) 60,000.00 45,000.00 30,000.00 15,000.00 -
Aquino, Capital (Note 4) 162,026.00 242,705.86 358,614.78 510,164.48 698,867.05
Empemano, Capital (Note 5) 137,026.00 217,705.86 333,614.78 485,164.48 673,867.05
TOTAL LIABILITIES & EQUITY PHP 358,052.00 PHP 505,411.71 PHP 722,229.56 PHP 1,010,328.96 PHP 1,372,734.10
PROJECTED CASH FLOWS
Go Veggie Ice Cream
Comparative Cash Flow
For the year ended December 31, 201x

Particulars Year 1 Year 2 Year 3 Year 4 Year 5

Cash Flow form Operating Activities
Net Income PHP 374,052.00 PHP 461,359.71 PHP 531,817.85 PHP 603,099.40 PHP 677,405.14
Depreciation - Equipment PHP 9,000.00 PHP 9,000.00 PHP 9,000.00 PHP 9,000.00 PHP 9,000.00
Depreciation - Furnitures and Fixtures PHP 1,684.00 PHP 1,684.00 PHP 1,684.00 PHP 1,684.00 PHP 1,684.00
Decrease in Inventory (Note 1) (113,424.00) (22,684.80) (4,536.96) (907.39) (181.48)
Decrease in Accounts Payable (Note 2) (15,000.00) (15,000.00) (15,000.00) (15,000.00) (15,000.00)
Net Cash Provided by Operations 256,312.00 434,358.91 522,964.89 597,876.01 672,907.66

Cash Flow from Investing Activities

Purchase of Computer 15,000.00 - - - -
Purchase of F&F 8,420.00 - - - -
Net Cash Used 23,420.00 - - - -

Cash Flow from Financing Activities

A, Withrawal 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00
E, Withdrawal 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00
Net Cash Used 300,000.00 300,000.00 300,000.00 300,000.00 300,000.00
Increase(Decrease) in Cash (67,108.00) 134,358.91 222,964.89 297,876.01 372,907.66
Add: Cash, January 1 225,000.00 157,892.00 292,250.91 515,215.80 813,091.81
Cash, December 31 PHP 157,892.00 PHP 292,250.91 PHP 515,215.80 PHP 813,091.81 PHP 1,185,999.47
HUMAN RESOURCE
PROJECT SUSTAINABILITY
Sustainability Objectives Sustainability Actions

Evaluate project effectiveness * Design and implement a comprehensive

evaluation plan to assess the impacts
of various strategies implemented

Maintain project flexibility to adjust *Get regular feedback from customers about progress
to challenges in doing the business *Develop a list of alternative strategies and
plan to implement them if chosen strategies did not work

Provide staff and employees training to support * Conduct regular staff training and preparation
strategic planning and operation skills, on key sustainability factors
knowledge of needs assessment and leadership skills

Aim to have multiple sources of funding *Work closely with community partners and
coalition member organization to assist them
in writing grants to fund companion efforts

Develop and conduct a comprehensive * Design and implement a comprehensive evaluation

project evaluation plan to assess the effectiveness of the project

Develop community support and ownership *Seek for the cooperation of community bodies
for the project in the targeted communities (e.g. schools, etc.) and engage them in the promotion
of the product
PROBLEMS AND INSIGHTS
 Problem:Risks involve during initial phase
 Insight: Low number of customers may be caused by the
tendency of the consumers to have a certain difficulty in
accepting or trying a new product.

 Problem: Tight competition

 Insight: May due to the presence of other ice cream products
which is already well-known in the market.

 Problem: Cleanliness and safety in the working environment

 Insight: Accidents may occur (fire, gas or tank leakages, short
circuit, etc.) due to human error or unexpected machine
malfunction which is inevitable.
SAMPLE QUESTIONNAIRES
I. Market Survey: Consumer view on improving the “Go
Veggie Ice Cream”
 Would you eat vegetable flavored ice cream?
YES
NO
 How often do you eat ice cream?
Once a week
2-4 times a week
Once a month
 How many ice creams do you usually eat?
1 ice cream
2 – 4 ice creams
3 or more ice creams
II. Sensory Evaluation of “Go Veggie Ice Cream”
Sensory Quality 5 4 3 2 1
A. Color
1. Its color makes the appearance of the
malunggay and squash ice cream more
attractive.
2. The malunggay and squash ice cream
offers distinct coloring.
3. The color of the malunggay and squash
ice cream is appealing.
4. The color of the malunggay and squash
ice cream influences the consumer
perception.
5. Based from the color the malunggay
and squash ice cream look more
delicious.
B. Taste
1. The taste of the malunggay and squash
ice cream is unique.
2. Malunggay and squash ice cream is
tempting.
3. Malunggay and squash ice cream is
more delicious than the usual ice cream.
4. Malunggay and squash ice cream is
mouthwatering.
5. The taste of the malunggay and squash
ice cream gives pleasure.
C. Texture
1. The texture of the malunggay and
squash ice cream is fine.
2. The texture of the malunggay and
squash ice cream is likeable.
3. The texture of the malunggay and
squash ice cream is unique for the taste
buds.
4. The texture is very attractive.
5. Based from the texture the malunggay
and squash ice cream looks more
appetizing.
 Indicator Mean Interpretation
A. Color
1. Its color makes the appearance of the 3.73 Agree
malunggay and squash ice cream more
attractive.
2. The malunggay and squash ice cream 3.55 Slightly Agree
offers distinct coloring.
3. The color of the malunggay and squash 3.57 Slightly Agree
ice cream is appealing.
4. The color of the malunggay and squash 3.54 Slightly Agree
ice cream influences the consumer
perception.
5. Based from the color the malunggay 3.57 Slightly Agree
and squash ice cream look more
delicious.
B. Taste
1. The taste of the malunggay and squash 3.8 Agree
ice cream is unique.
2. Malunggay and squash ice cream is 3.43 Slightly Agree
tempting.
3. Malunggay and squash ice cream is 3.27 Slightly Agree
more delicious than the usual ice cream.
4. Malunggay and squash ice cream is 3.54 Slightly Agree
mouthwatering.
5. The taste of the malunggay and squash 3.45 Slightly Agree
ice cream gives pleasure.
C. Texture
1. The texture of the malunggay and 3.61 Slightly Agree
squash ice cream is fine.
2. The texture of the malunggay and 3.29 Slightly Agree
squash ice cream is likeable.
3. The texture of the malunggay and 3.42 Slightly Agree
squash ice cream is unique for the taste
buds.
4. The texture is very attractive. 3.16 Slightly Agree
5. Based from the texture the malunggay 3.2 Slightly Agree
and squash ice cream looks more
appetizing.