Karina’s Dinangay

A Business Proposal

______________________________________________________________________

In Partial Fulfillment of the Requirement for the Subject

GE 11 – Entrepreneurial Mind
First Term First Semester SY 2020-2021
2:30 pm – 3:30pm

Submitted to:
SIR CLYDE ABNER VALDEZ

Submitted by:

Group E
Arsate, Rod Ryan
Escabusa, Karina
Macaya, Ryan
Patayon, Brylle
Casio, Jemaima

October 16, 2020

 TABLE OF CONTENTS

I. Description of the Proposed Business -------------------------------------------3

II. Proposed Product or Service -------------------------------------------------------4

III. Target Market ---------------------------------------------------------------------------8

IV. Competitors ----------------------------------------------------------------------------10

V. Marketing Strategies / Realization of the Proposed Business ------------12

VI. Location/ Production -----------------------------------------------------------------15

VII. Management ---------------------------------------------------------------------------17

VIII. Cost of Production and Pricing Strategies --------------------------------------18

P a g e 2 | 21
I. Description of the Proposed Business

Many reason people are into purchasing or eating delicacies especially the
traditional ones. It could be due to cravings, hunger, seasons, or special occasions.
Seasons are coming and many people will start to look for traditional Filipino delicacies
not just for putting food into the table but also preserving cultural and traditions and
introducing it to the next generations. People nowadays are fond of consuming high-
calorie and unhealthy foods like pizzas, burger, fries, and the likes which could not be
denied as very delicious but could also pose serious health problems when taken
regularly or at high volumes. There are wide range of choices for snacks in the market
but less of them provides the nutrition that we really need. That is why we came to this
product that promotes healthy eating and at an affordable price that even the poorest
can buy.
Karina’s Dinangay is a partnership of 5 stuudents coming from different courses
from the University of Mindanao. This we can assure that the product is made safely
and with high market competency. We came to this idea because we want to promote
healthy eating and provide affordable and healthy product in the market. People’s diet
and eating habits are changing nowadays and that they are looking for healthier foods
and snacks. Even with that, the current market are not sufficiently providing the high
demand of healthy food. Karina’s Dinangay aims to provide nutritious snack with the
blended nutrition of banana, egg, and high quality flour that will satisfy the hunger and
nutrition the consumer needs. As banana is the main ingredient in this product, majority
of the supplier came from the high quality crops of Marilog District. With this, this is like
killing 2 birds in one stone as we also help the living of indigenous people by buying
their banana crops and also improving our business.

P a g e 3 | 21
Company Logo

We purposely used dark background in our logo in order to catch the attention of
people and also to highlight the company name. Dark background will attract
consumers especially at night. The banana leaf is found at the center background of the
company represents that pure banana is used when making the product and that it is
the main ingredient. Study shows that yellow is attractive to the eye and that it could
stimulate something like hunger when perceived with our brain.

II. Proposed Product or Service

In our business, we come up with a product that is affordable, healthy and most
importantly unique. This product is not new but unusual to the market. Dinangay is
made of crushed Saba banana put on a banana leaf and cooked in a low fire. The
Dinangay is wrapped in a clean banana leaf, this means the consumer needs to unwrap
the banana leaf to consume it. When tasted, the Dinangay will give you the sweetness
of cooked Saba banana. Dinangay is a known food commonly found in Cotabato City.
We want to introduce this delicious and affordable food outside the campus of
University of Mindanao in order for people to know it and try it. We also want people
from Cotabato City who lives in Davao City to know that their favorite food is now here
in Davao City. In Philippines, saba banana is a common ingredient for banana snacks
like boiled raw banana and banana cue. We want people to introduce a snack with the

P a g e 4 | 21
same familiar feeling as other banana snacks. Philippines is the second largest
producer of bananas in the whole world. This means that bananas including saba
bananas can be easily found in local markets for a very cheap price. Saba bananas are
contained with vitamin A, B and C and it is also a good source of carbohydrates, dietary
fiber and iron.

We want to introduce a product like this because we want people to buy a

healthy, delicious and affordable food in Davao City. We want to test run this business
for a period of 1 to 2 years to know if there is a need of investment in this business. To
further discuss this, we will SWOT analysis to know our advantages, disadvantages,
strength and weakness of our business.

Strengths - The strength of our business is there are no existing

business that sells Dinangay other than us.
- There are people who do not know about Dinangay
and they will be curious about the how it tastes.
Weaknesses - Our major weakness is we have many competitors that
sells different type of foods outside University of
Mindanao
- Dinayang lacks appeal in terms of the snack itself. This
means, we need to be better at our marketing strategy.
Opportunities - There are many students who come in and out of the
campus, that means there are many potential
customers.
Threats - It is a known fact that economic downturn is always
going to affect everything.
- People sometimes don’t eat snacks that they don’t
recognize.

Customer Benefits

- Health Benefits. Saba bananas contains various vitamins and minerals.

P a g e 5 | 21
 - Convenience. Dinangay is wrapped with banana leaf which is easy to handle.
- Satisfaction. Dinangay assures satisfaction in customers because of its
natural and cooked banana flavor.

TECHNICAL ASPECTS OF THE BUSINESS

Making this product is very easy because the ingredients and materials needed for the
product is easy to find.

Ingredients:

1 set of Saba Banana

¼ Flour

¼ Brown Sugar

Banana Leaf

Process of making Dinangay:

1. Beat the banana until it is crushed and soft

P a g e 6 | 21
2.
After

beating the banana, add flour and a little brown sugar. Then, mix it well.

3. In a slice of banana leaf, add the banana mixture.

P a g e 7 | 21
 4. After adding the banana mixture in the banana leaf, we will fold it until it is
covered.

5. After folding it, put it on the hot stove and cover it after 2 to 3 minutes.

Final Product: Dinangay

6. The final product contains a freshly-cooked Dinangay that is very healthy,

affordable and delicious.

P a g e 8 | 21
III. Target Market

Overview of the Market: Demand and Supply

Demand

Bananas are very common fruit here in the Philippines and these can be easily
processed into various food products that could produce higher nutritional and
economic value than just simply eating a banana. According to the data of Department
of Agriculture, about 66% of production is consumed locally, and 16.5% is used for
processing. Data shows that in 1997. 19.094 tons of banana chips (from Saba banana)
were exported. Small-scale farms bananas are sold on a finger count basis and
commercial plantation is sold by weight basis. There are several of food products that
can be made from bananas and they are made locally by Filipino street vendors like the
famous ginanggang and maruya that is so easy to prepare and served as meryenda.
Our product is a famous Magindanaon’s native delicacy, and since it is a delicacy, we
should study the demand of domestic delicacy especially Christmas season is fast
approaching. According to BusinessWorld, the food service industry in the Philippines is
growing at a phenomenal rate and the influx of foreign brands will compel homegrown
Filipino concepts to up their game not only in food quality and dining experience but
also in terms of recipes and presentation.Domestically, many small entrepreneurs
engage in retail and invest in selling foods especially if they do not require a lot of
capital. Since food is a need, it never goes out of style and profit is rest assured by
selling. As seasons is fast approaching, Filipino delicacies are high in public demand as
Filipino traditions continues to affect the demand curve. According to The Worldwide
Healthy Snacks Market, people are learning and looking for more healthy snacks
nowadays. Consumers are becoming more conscious of what they are eating rather
more than to satisfy their hunger and bananas with its high nutritional value exactly fits
their needs and budget. With the information above, we decided to make a product that
has the ability to compete in the market and meet the needs of our beloved customers.

P a g e 9 | 21
 The majority of our target market will be cover the whole population of Davao city
as we will keep on monitoring the demands and look to put up several branches near at
San Pedro Cathedral, Roxas night market, Obrero, Matina, and will also be available
through online. The percentage demand of our product in this places is estimated to be
less than 50% of the total count of the visiting population.

Market Evaluation: Market Trends

Snacks and Delicacy will never go out of trend. Specialty Food Association’s
annual State of the Specialty Food Industry Research, 2019-2020 edition wrote that
snacking appeals to 47% of the total consumers. The food industry of the Philippines is
constantly growing and evolving and the promotion of the local food could positively stir
the trend of the Philippine Market. Most of the Filipino delicacies are more than just
snacks as it could really full a person’s belly and this delicacy is just not about getting a
full belly but serving the right nutrition most consumers are up to. Nowadays, more
people are replacing their meals by choosing healthier and more nutritious food. CEO of
BuckWHAT Foods Leeann Rybakov said that in 10 years the food that will be
gravitating will be those will real ingredients and no processed sugar. As our product is
simple, it is somehow considered to be a finger food. Just like pastil, a delicious Filipino
food, our product can easily attract buyers as it could be eaten right away after buying.
Ideally, no fork, spoon, or knife is needed to eat it. According to the article of Didier
Sockell – Food For Thought: What spiked finger food trend? Finger foods are preferred
because it’s a no-mess, simple to serve, convenient, can be very healthy and less cost
of production.

IV. Competitors

The Karina’s Dinangay competitors are based on its location. The following are
the considered main competitors of the Karina’s Dinangay:

Name: Pasalubong Center

P a g e 10 | 21
Competetive Product: Almost all souvenir items and local products
Location: Jln Palma Gil St, Poblacion District, Davao City
Target Markets: OFW and all working and non-working customers

Strengths Weaknesses
Business - A well-known business Busines
industry that provides s
snacks made
domestically.
- Good Ambiance and
staffs accommodates
the customers properly
Product - Snacks, clothing, Product
accessories
- They have varieties of
product and could
possibly supply
everything a customer
needs.

Name: Taco Boy

Competitive Product: Fried Tacos and Other Mexican food
Location: Outside the USEP Obrero Campus
Target Markets: students, staffs and faculties of the University of Southeastern
Philippines

Strengths Weaknesses

P a g e 11 | 21
Busines - A well-known food industry Business
s business here in Davao.
- 15 years in the business
industry.
- A stable industry that could
affect the demand.

Product - Their famous taco could Product - Their tacos may not met
easily out maneuver the the nutritional value set
competition. by some consumer.
- Their fried taco is budget
friendly.

Name: Jaltan Delicacies

Competitive Product: their best seller Cassava cake and other Delicacies such as
Sapin-sapin, Cassava Cake, Suman, Biko, Pansit Malabon, Palabok and more.

Location: SM Ecoland, Victoria Plaza, JS Ilustre, NCCC Buhangin and Gaisano Grand
Mall Citygate Buhangin

Target Market: All customers

Strength Weaknesses
Busines - A powerful industry that Busines
s has many local s
branches.
- They are now on
Foodpanda.
Product - Offers a lot of products Product

P a g e 12 | 21
 - Offers healthy snacks

V. Marketing Strategies / Realization of the Proposed Business

Market segmentation
Karina’s Dinangay customer based on UM Matina, Davao city is comprised of
four target groups.

1. Students of the University of Mindanao

2. Staffs of University of Mindanao
3. Health Conscious
4. Other customers

These groups are all strong customer segments. The purpose and benefits of
mixed customers help the consistency of the business.

-Students of the University of Mindanao. There are many enrolled students at the
University of Mindanao Matina campus, mostly use the main gate of the school located
in Matina where our food cart is located. Many students will pass by our cart and will be
informed about our product

-Staff and faculty of the University of Mindanao. Since the University of Mindanao
caters to many students it is quite obvious that there are many faculty and staff. Like
students, faculty and staffs use the main gate and will surely pass our food cart.

-Health-conscious. Banana has vitamins, that no harm food and help to our body,
those health-conscious ones will worry less for they are eating a delicious and healthy
snack.

-Other customers. There are a lot of people who enter the university of Mindanao
Matina campus due to different concerns those pests buyers will surely inform of other
products or day passes are cart.
P a g e 13 | 21
Promotion strategy

Social media
Nowadays the majority of the customer have their accounts more specifically
Facebook, Twitter, and Instagram, social media has a vital role in our lives it seems to
be the thing that connects every one of us. Karina’s Dinangay wants to cater to target
customers that are far from the store. With this Karina’s Dinangay we can provide and
information on the page for customers for more information about the products.

• The Facebook fan page is Karina's Dinangay

Through the Facebook fan page, the customers easily get a piece of information
about the company. This is being made for the majority of the customers who have
Facebook accounts. It has benefits to the customers and the company as well as
customers can give their feedback and the company receives feedback and apply it to
the product.

• Twitter is known for the freedom wall for many can express freely, Karina's
Dinangay has a twitter account where customers are free to express their
reactions and comments. With the help of this site, we can easily monitor their

P a g e 14 | 21
 assessment by using the hashtag #Karina’sDinangay with the username of
@KarinaDinangayPh

• Instagram is a networking site that will help customers to be updated with promos
that the products might add. By searching username @Karinadinangayph,
customers can easily locate the company’s Instagram account.

Product range

Since our food cart is being placed outside the main gate of the University of
Mindanao you’re expecting that we can accommodate mostly the students of the
University of Mindanao and also some staff of the University of Mindanao. The dinangay
that we are selling is a portion of healthy food and very affordable also it is to go product
and very convenient.

P a g e 15 | 21
Product details

Our very own product Dinangay is made up of banana and other ingredients. As we
all know banana is a great source of the potassium and vitamins a and vitamins b6 so
the product is highly nutritious. It will help improve the ease and urinary tract infections
and vitamins help the immune system work well. The sweetness and easy to chew
dinangay is the particular student must bear.

VI. Location/Production

The Location of Karina’s Dinangay is located near the Gate 1 of the University of
Mindanao, Matina Campus.

Our products are also available online. You may contact 09654875540 for more
information. You may also visit us on our Facebook page, Karina Caipang. This is a
strategic location to serve our target market, since there are a lot of students, teachers,
and other customers nearby. The dis-advantage is that, the road is so narrow, and
parking is very limited. The business opens Monday to Saturday, 8:00Am to 7:30Pm.

The production is in-house. The members are all responsible for doing their job
and other concerns of the business. The production will be in one member’s house,
located at Maa, Davao City.

P a g e 16 | 21
 Production will
take place

Karina’s
Dinangay

Figure 1. Location of the Karina’s Dinangay and where production will take place

P a g e 17 | 21
VII. Management

Brylle Patayon
General Manager

Ryan Macaya Rod ryan Arsate

Financial Manager Production Manager

Karina Escabusa Jemaima Casio

Problem Solving Manager Accountancy

Position Information:

Position: General Manager

Brylle Patayon will enforce of managing a business. They are all responsibility of
the coordinating planning, and making decisions that what are the best interest of the
business. And create and implement strategies designed to help grow the business.
Manage the staff and projects in the company.

Salary: P 10,500

Position: Financial Manager

Ryan Macaya Defined as the area of function in organization which is concerned

with profitability, expenses, cash and credit so that the organization may have the
means to carry out its objective.

Salary: P 10,500

P a g e 18 | 21
Position: Production Manager

Rod Ryan Arsate this involves with planning, coordinate the other people who in
charge. Ensure that goods and services are produced the correct amount at the right
cost and level of quality.

Salary: P 10,500

Position: Solving Problem:

Karina Escabusa This act of defining a problem determining the cause of the
business problem, identifying, prioritizing the selecting alternatives for a solution in order
to implementing a solution for the business.

Salary: P 10,500

Position: Accountancy

Jemaima Casio Will provide and examine records to make sure there records to
provides financial information to our management by researching and analyzing
accounting data.

Salary: P 10,500

VIII. Cost of Production and Pricing Strategies

Pricing strategy

Karina’s Dinangay sets up the price through Mark-Up Pricing. It is a common type of
pricing basically in retailing which a retailer sells the product to earn and maximize
profit. 78% percentage of Karina’s Dinangay added from the normal product’s price to
gain profit.

P a g e 19 | 21
Table.1

Variable input Units Quantity Price Cost/Month

Banana Kg 150 70 10,500

Banana leaves Bundle 15 20 300

Sugar Kg 50 20 1,000

Flour Kg 40 25 1,125

Water and Kilowatts &cm 1,000

light
Total cost per 13,925
month

Table.2 Find Cost

Fixed input Total cost of fixed input

Business permit 251
Ppe 93.25
Rent 3,000
Labor 10,000
Total find cost 13,344.25

Table. 3

PPE Cost Useful life(Yr) Deprecation/ month

Glass display 1,000 5 17
Gas stove 3,000 5 13.25
Kitchen equipment 800 2 63
Total 4,800 P93.25

P a g e 20 | 21
TOTAL COST PER MONTH = TOTAL FIXED PER MONTH + TOTAL MATERIALS
COST
PER MONTH
= 13,344.25+ 13,925

TOTAL COST PER MONTH = 27,269.25

AVERAGE TOTAL COST = TOTAL COST / QUANTITY

=27,269.25 / 5,000

AVERAGE TOTAL COST = PHP 5.45

To determine the price of Dinangay, mark-up based pricing ATC= PHP 4.00 is
utilized.

MU=78%

SELLING PRICE = ATC+ATC (MU)

= 5.45+5.45(0.78)

=PHP 9.701

SELLING PRICE = PHP10

MU % = SP-ATC / SP x 100
= (P9.701-5.45/5.45) (100)
= (P4.251 / P5 .45) (100)
=0.78 (100)
MU % = 78 = 78%

Karina’s Dinangay will be sold for 10 pesos each. In each Dinangay we can gain
a profit of 5.45 pesos, approximately 6 pesos. With a production of 192 pieces of
dinangay per day, in one month with 26 days of operation, we can produce 5,000 pieces
of Dinangay, so in a month our target sales will be Php50000 [(5,000) (10)]. Then in a
year, our target sales are Php. 600,000.00 [(5000) (12)(10)].

P a g e 21 | 21