I.

Executive Summary

A. NAME OF ENTERPRISE

Kamatis represents the use of powdered tomato as a substitute from fresh tomato

and tomato products but still maintain the flavor rich, sweetness of red tomatoes.

Presenting a product that is quiet simple having 100% pure and natural dehydrate

tomatoes powder that has a longer shelf life and also allows people to mix up

accurately as much as they need for a fresh and clear flavor.

B. LOCATION: Barangay San Diego, San Pablo City, Laguna

C. PROJECT DESCRIPTION

Tomatus Nutrixus, Co. will offer powdered tomato to sari-sari store, supermarkets

and public markets. This will be useful to different sectors of society, especially

with regard to health concerns. It has the aim of looking forward to lessen the

hassle of food preparations, and to provide more convenient stock pile as well as

maintain an efficient usage. The product could be used for seasoning mixes,

dipping sauce, and all food-related industries.

D. PROJECT LONG-RANGE OBJECTIVES

Powdered Tomato aims to expand its operation by providing additional product

lines and be globally competitive and to venture also to organic powdering.

E. SUMMARY OF FINDINGS AND CONCLUSION

A. Management Aspect

The proposed project would be having a partnership which is composed of

five partners. As general partners who agree to contribute money, labor or

skill to a business, each partner shares the profits, losses and management of

the business and each partner is personally and equally liable for debts of the

partnership. The proposed business is a general partnership which is

administered by a general manager. The administrative officer is in-charge in

the office with an administrative assistant and sales and marketing staff as

subordinates and the plant supervisor is in-charge for the plant operations with

machine operators, maintenance, and warehouse and delivery as subordinates.

B. Product Aspect

The product is an 85-grams of tomato powder packed in a bottle. A gram of

fresh tomato can generate into 0.37625 grams of tomato powder. This

contains nutrients and is equipped with lycopene an antioxidant agent that

promotes a defense against cancer. The product undergoes the manufacturing

procedure from receiving fresh tomatoes, washing of it, slicing an “X” on the

bottom, blanching in a large pan, stem and skin removal, rinsing on the water

solution, drying either from the sun or through the solar dryer, grinding in the

blender, packaging and to storage.

C. Marketing Aspect

Tomato powder will be sold in ______. The advantages of the powdered

tomato from fresh tomato is one, it is not highly perishable which means you
 can stock this in any place for as long as it is not yet expired. Two, it is

convenient to use because it is packaged in a bottle unlike fresh tomato which

you have to cut it with a knife. Three, it might be lower in price as compared

to fluctuating prices of ordinary tomato. And four, it also tastes the same as an

ordinary tomato. The company will use promotional materials such as

tarpaulin and brochure, free samples in supermarkets and groceries. The

product will also be promoted with the power of social media. The company

will also join trade fairs that will be sponsored by the Department of Trade

and Industry. A 30-day credit term will be given to the company's wholesalers

and retailers

D. Financial Aspect

The product is feasible in accordance with the major assumptions and data

collected with internal rate of return (IRR) of ____ percent, payback period of

____ years, net present value (NPV) _______, benefit cost ratio (BCR) _____,

and return on investment (ROI) of ____ percent.

E. Social Responsibility

Crops of tomatoes have socioeconomic importance to families, gardeners,

farmers, laborers, marketers, retailers, chef and food and restaurant industries.

The powder could be kept longer than most tomato paste and allows consumer

to mix up exactly as much as they need for a fresh or clear flavor. It is not

easy to spoil, it is hygroscopic. This type of product can help consumer to use

exact amount of tomato and to minimize cost. Tomato powder is very useful

in the off-season, when fresh tomatoes aren't very flavorful. It has a typical
flavor and taste of natural and fresh tomato free from artificial flavor. It is a

free flowing powder that retains the number of valuable nutrients. One of the

nutrient contents in the tomato powder is lycopene. Researchers Talvas J,

Caris-Veyral C., and Guy L. et. al. found out an important connection between

lycopene, its antioxidant properties and bone health. It is a highly potent

antioxidant that provides protection against cellular damage by reactive

oxygen species and also implicated as a potential cancer chemo-preventive

agent. The health benefit of tomato powder can also reduce the risk of heart

disease and prostate cancer. The seeds of tomatoes are collected by some

businesses that can be an additional income at the same time reduces the

number of waste. The seeds will be sold to the supplier of tomatoes from

farmers of Nagcarlan, Laguna. The waste removal from the public areas

reduced the overall health risk and infestation of pest especially in urban areas

and also reduces the exposure of people to biohazard. In establishing the

business, it will employ 11 office managers and 12 factory workers that would

also help the economy of the city. During the construction of the building, it

will require skilled laborers for the high-end facilities of the company. The

business also provides the unique potential to serve and extend the food

industry with outstanding product quality and services to small and large-scale

industries.
II. Management Aspect

A. Form of Ownership

The proposed project would be having a partnership which is composed of

five partners. All assets contributed into the partnership are owned by the

partnership by virtue of its separate and distinct juridical personality. If one partner

contributes an asset to the business, all partners jointly own in a special sense. The

owners could take part in both the office and factory works together with their

capital contribution in the business. This would cut off some of the labor cost. The

partners would get their part of salary in the proportionate distribution of profits

rather than hiring more employees that would cost as a salary expense. As general

partners who agree to contribute money, labor or skill to a business, each partner

shares the profits, losses and management of the business and each partner is

personally and equally liable for debts of the partnership.

The business could also expect a smooth flowing process with its owners

would be directly hands on for their processes because of the flexibility of action

in decision-making. This means that if there’s a minimal problem, it would be

resolved immediately by the partner who is present or in-charged. The works

would be more careful for their part in the processes that could either increase their

profit or cause them loss. In term of the liability, the partnership is a general

partnership which means that all partners are liable to the extent of their separate

properties. The life term of the partnership depends on the will of the partners in

which no term is specified and is not formed for any particular undertaking.
 B. Organizational Chart

Figure 1. Organizational chart

General Manager

Administrative
Plant Supervisor
Officer

Administrative Sales and Marketing Warehouse and

Machine Operators Maintenance
Assistant Staff delivery
 Page |1

C. Duties and Responsibilities

1. General Manager. He is in-charge of supervision from Administrative Officer

and Plant Supervisor. He is responsible for controlling, organizing and

planning the business.

2. Administrative Officer. He supervises the Administrative Assistant and Sales

and Marketing staff. He has different role like:

 Finance and Accounting. He ensures all the expenses within the assigned

project budget and oversees the preparation of the financial statement and

other financial budget.

 Cashier. He handles and coordinates the inward and outflow of cash in the

firm.

3. Plant Supervisor. He supervises the machine operators, maintenance and

warehouse and delivery and the one who maintain the production schedule

and meet production goals. He has the overall responsibilities of supervising

and monitoring the plant. He directs the work of junior operators in the plant.

In addition, he exercises a lot of authority and can be called upon to make a

decision at the spur of the moment. Additionally, his role includes ensuring

efficiency and effectiveness in his defined role.

 Engineer. He is assigned in the design, acquisition, construction, repair,

maintenance, conversion and overhaul of the factory machine and

equipment.

4. Administrative Assistant. He helps the administrative officer to do the job.

 Page |2

 Human Resource. He is responsible for providing support in the various

human resource functions, which include recruitment, staffing, training

and development, performance, monitoring and employee counseling.

 Bookkeeper. He is in-charge of preparation and analyzing the accounting

records, the assets, liabilities and equity. He is responsible to the daily

transaction of the firm.

5. Sales and Marketing Officer. He communicates with the buyers and

merchandisers. Discussing the product cost to the buyers. Developing and

implementing marketing program and marketing strategies.

 Sales Coordinator. He implements sales policies, has the role of

supporting the sales team to achieve the targets imposed by the company

and tries to determine, together with the clients and the management, the

business requirements. He/she must maintain a good relationship with the

clients, the distributors and the sales agents. He/she also has to perform

administrative duties (such as offers, proposals, agreements or reports).

6. Warehouse Officer and Delivery. He provides materials, equipment, and

supplies by directing receiving, warehousing, and distribution services;

supervising staff. Delivery officer organized the storage and distribution of

goods and responsible for maintaining a record of all outstanding purchase

orders. They arrange transportation and forwarding services for all orders to

ensure material is delivered as per schedule.

7. Factory Workers. They are the producers of tomato powder.

a. Washer. He is responsible to wash the fresh tomatoes.

 Page |3

b. Slicer. He is responsible in slicing tomatoes after washing.

c. Blancher. He is responsible for putting the tomatoes in boiling water and

transfers it to cold water.

d. Stem and Skin Remover. He is in-charge in removing the stem and skin

of tomatoes.

e. Rinsing. He is responsible in washing the tomatoes with sodium

metabisulfate that act as a preservative.

8. Maintenance. He is in-charge of keeping the utility system such as electricity

and water. He is assigned to clean the production area and office place.

9. Quality Control Specialist is ensure that a product manufactured meets certain

quality standards and is safe to sell.

10. Machine Operators will set up and operate machines in drying, grinding and

packaging of tomato powder.

 Page |4

Number De
Total per
Title of Basic Pay Minimis Total
Employee
Employee Benefit

General Manager 1 12,000.00 5,000.00 17,000.00 17,000.00

Admin Officer 1 11,000.00 4,000.00 15,000.00 15,000.00

Plant Supervisor 1 10,500.00 4,000.00 14,500.00 14,500.00

Administrative Assistant 1 9,000.00 2,000.00 11,000.00 11,000.00

Sales and Marketing Staff 1 9,000.00 2,000.00 11,000.00 11,000.00

Machine Operators 2 9,000.00 1,000.00 10,000.00 20,000.00

Maintenance 2 7,700.00 7,700.00 15,400.00

Warehouse and delivery 2 9,000.00 9,000.00 18,000.00

Factory Workers

Washer 2 8,000.00 8,000.00 16,000.00

Slicer 2 8,000.00 8,000.00 16,000.00

Blancher 2 8,000.00 8,000.00 16,000.00

Stem and Skin Remover 2 8,000.00 8,000.00 16,000.00

Rinsing 2 8,000.00 8,000.00 16,000.00

Quality Control Specialist 2 8,500.00 8,500.00 17,000.00

Total 23 218,900.00

Table 1. Labor Requirements

III. Product Aspect

A. Product Description

The tomato, though technically a fruit, is often used as a vegetable.

The term vegetable is more generally used of other edible parts of plants, such as
 Page |5

cabbage leaves, celery stalks, and potato tubers, which are not strictly the fruit of

the plant from which they come. Occasionally, the term fruit may be used to refer

to a part of a plant which is not a fruit, but which is used in sweet cooking.

Therefore, a tomato is the fruit of the tomato plant but can be used as a vegetable

in cooking. Whether it is a fruit or vegetable it does not matter what matter is that

tomato is equipped with lycopene an antioxidants agent that promotes a defense

against cancer. It is a fact that numerous studies were conducted that proves to

that tomato help to a healthy living of the people.

In the bygone years, a dehydration technique is one which has come a

long way. The old technology did not leave moisture in the dehydrated products

nor did these poorly dehydrated foods store very well. In our present technology,

moisture levels have been reduced. Gone are the pliable dehydrated foods.

Tomato is one of these products that can undergo dehydration. Powdered tomato

will soon go up on the market as people get to learn of it.

Tomato powder has a flavor so rich - yet you would not believe it,

until you taste it; having the sweetest red tomatoes of the crop, spray-dried into a

fine powder. The main reason for the customers to buy this product is for use

when they need a little more tomato sauce or paste, but hate to open up a whole

can. In addition, it is very useful in the off-season, when fresh tomatoes are not

very flavorful.

The product is an 85-grams of tomato powder packed in a glass bottle. Glass

bottle has presented many advantages to consumers, it is guaranteed to receive the

correct amount of product and ease in consuming it at any place or situation. It

 Page |6

will be packed in glass bottles which were seen as preferable to canned tomatoes

due to risk of lead poisoning from cans. Fresh tomato is highly perishable so it

would be better to use tomato powder that has a longer shelf life and also allows

people to mix up accurately as much as they need for a fresh and clear flavor.

This product has 8 years optimum shelf life and 1 year opened shelf life.1 This

product is quiet simple having 100% pure and natural dehydrate tomatoes.

The table shows the nutritional information that the tomato powder contains in

a ½ cup serving. The Percent Daily Values (%DV) are for adults or children aged

4 or older, and are based on a 2,000 calorie reference diet. The daily values may

be higher or lower based on individual needs.2

Table 2. Nutritional information

Nutrients Amount per serving % Daily value

Fat 0g 0%

Protein 4g 11%

Carbohydrates 21g 7%

Sugar 6g

Sodium 38mg 2%

Cholesterol 0mg 0%

Potassium 16%

Vitamin A 56%

Vitamin C 55%

1
http://foodstoragemadeeasy.net/fsme/docs/shelflife.pdf
2
http://nutritiondata.self.com/facts/vegetables-and-vegetable-products/2691/2
 Page |7

Calcium 5%

Iron 8%

Thiamine 22%

Niacin 16%

Riboflavin 15%

Source: Nutrient data for this listing was provided by USDA SR-21, 2014

Table 3 illustrates the physical properties of tomato powder product from

its color, odor, taste and mesh.

Table 3. Physical properties

Form Solar Dried Powder

Color Orange-red color powder

Odor Characteristic of Tomato

Taste Characteristic of Tomato

Mesh Analysis Minimum 99.0% through 20 mesh USS screen.

Table 4 demonstrates the chemical properties of tomato powder that

consist of moisture and measure of acidity.

Table 4. Chemical properties

Moisture Not more than 6%

PH (1:3): 3 –5
 Page |8

Tomato powder is a substitute to fresh tomatoes, tomato sauce, or

tomato paste. It has a flavor of rich, sweetest red tomatoes. It could be used for

seasoning mixes, dipping sauce, and all food-related industries. This can be made

into sweet tasting paste or sauce in matter of minutes. No more opening cans of

paste or slicing tomatoes to use only a portion and letting the rest go to waste.

This product is a versatile base for sauce, paste, juice and more. It can be used to

make a great tasting spaghetti or pizza sauce by adding water and spices or using

it to thicken salsa and sauces without having to simmer for hours. It gives all

sauces a robust tomato taste or make barbeque sauce or catsup. This powder is

as delicious as it is easy to use.

B. Manufacturing Process

Steps:

1. Receiving – receive fresh tomatoes from the supplier in the receiving area and

preparing the raw materials for the next process.

2. Washing – wash tomatoes under cool running water beneath a large basin.

3. Slicing - slice an “X” on the bottom of each tomato using small utility knife.

4. Blanching - in a large pan, bring water to a rolling boil and get a large bowl

and then fill a large bowl with a cold water. Place tomatoes in boiling water for

30 seconds to loosen skin. Remove tomatoes in the boiling equipment after 30

seconds, and then place directly to cold water so as to stop the cooking process.
 Page |9

5. Stem and skin removal - core the tomatoes by removing the stem with a paring

knife. Peel away the skin; be careful not to injure the flesh of the tomatoes and

then slice tomatoes into ½ inch slices.

6. Rinsing - prepare sodium metabisulfate on water and then rinse tomatoes with

the solution.

7. Quality control – a quality control specialist must check the quality of

tomatoes before drying. If it is not properly washed, sliced, blanched or rinsed, it

must be returned to the process it insufficiently must have gone.

8. Drying - place on racks to allow air to circulate around the tomatoes and then

put the sliced tomatoes in a solar dryer.

9. Quality control – a quality control specialist must check the quality of dried

tomatoes before grinding. If the dried tomatoes are not dried yes, it must be

returned to the solar dryer.

10. Grinding - put the dried tomato in a blender for the blending of dried

tomatoes.

11. Packaging - put the powder in packaging equipment.

12. Storing – after the packing stage, the finished commodity will be preserved

in the area for finished products.

 P a g e | 10

Figure 2. Manufacturing process

Receiving Washing Slicing Blanching

No Stem
Quality
Rinsing and skin
control
Yes removal

Yes
Quality
Grinding
Drying control
No

Storing Packaging

C. Plant Size and Production Schedule

The plant has a lot area of 14,520 sq. meters which would be situated in

Brgy. San Diego, San Pablo, Laguna. The office hours is 8:00am – 5:00am from

Monday to Friday. The operation is divided into two shifts, 1 worker shift is

6:00am – 2:00pm Sunday and Monday then 2:00pm-10pm on Tuesday to

Thursday while the other worker will work on a fix schedule of 6:00am – 2:00

pm on Tuesday to Saturday. The enterprise will operate eight hours a day on

Friday to Monday and sixteen hours on Thursday to Wednesday. Total annual

production is approximately 346,593 to 439,017 85-grams bottle of tomato

powder.
 P a g e | 11

The number of total working days of the company which is 261

working days annually. Workers will be required to work on holidays depending

on the demand output.

Table 5 shows the timetable for the increasing production for the years

2018 to 2022 in total grams and total 85-grams pack. The maximum capacity of

solar dryer is four hundred kilos a day and 114,000 kilograms annually.

Considering the productivity of the solar dryer, it would be good to use up 75%

of the capacity for 2018, 80% in 2019, 85% in 2020, 90% in 2021 and 95% in

2022 so that the equipment to be used would be not too easy to be conked out.

The maximum capacity of 400 kilograms of the solar dryer multiplied to the

safety percentage is the total tomatoes needed per day. A gram of fresh tomato

can generate into 0.37625 grams of tomato powder. It would take approximately

6 hours to dry the tomatoes. During rainy days, the business would use the

dehydrator so as not to interrupt the scheduled days of operation. There is also

consideration for the peek and off season of the supply of tomato. Grinder

machine could grind 50 kilograms per hour.

Table 5. Annual production schedule

Tomato Annual Annual

Tomatoes Annual
powder Products Products per supply of output
Year per day output
per day per day month tomatoes (85-grams
(grams) (grams)
(grams) (grams) pack)

2018 300,000 112,875 1,327.94 28,882.72 78,300,000 29,460,375 346,593

2019 320,000 120,400 1,416.47 30,808.24 83,520,000 31,424,400 369,699

 P a g e | 12

2020 340,000 127,925 1,505.00 32,733.75 88,740,000 33,388,425 392,805

2021 360,000 135,450 1,593.53 34,659.26 93,960,000 35,352,450 415,911

2022 380,000 142,975 1,682.06 36,584.78 99,180,000 37,316,475 439,017

IV. Marketing Aspect

A. Demand and Supply Situation

Tomato is one of the most cultivated vegetables worldwide and is extensively grown

as a secondary crop especially in rice and corn-based farming systems. Consumption of

tomato continues to increase due to its health benefits and wide variety of uses. It is an

important element in cooking and as sidings in food preparation and as raw material in

manufacturing tomato paste or ketchup. In the Philippines, consumption of tomato increased

from 3.22 kg per capital in 1980 to 3.35 kg per capita in 1986 (Table 1).

Table 2. Apparent average annual per capita tomato consumption, Philippines, 1980-1986.

Year Consumption (kg per capita)

1980 3.22

1981 3.25

1982 3.22

1983 2.67

1984 3.09

1985 2.4

1986 3.35

Source: Villareal, Ruben L., Industrializing the Philippine Countryside, 1987

 P a g e | 13

Today, there is a bright prospect in the utilization of paste as shown by the increasing

amounts of imported and locally-produced paste that went into the food industry such as the

manufacture of sardines, catsup, sauce, pork and beans, and food preparations like pizza,

pasta, spaghetti and many others. For this reason, the paste industry in the Philippines needs

about 15,000 metric tons of paste in 1990 with local production contributing to at least 30

percent of the total.3 More consumption of tomato is expected in the Philippines as evidenced

by the establishment of several sardine factories, hamburger stands, pizza and pasta

restaurants in most urban centers throughout the Philippines.

The fresh tomato growers, without assured market, produce too much during the same

period resulting in over supply of tomatoes. As a consequence the price is depressed resulting

in low net return for them. During the rainy season, however, no processing tomato can be

grown profitably because of unsuitable climatic conditions. The supply of tomato is also low

because of the risk involved in raising a crop that only a few farmers grow them. Therefore,

the price of fresh market tomatoes is very high resulting in high net return for the growers.

The prospects for increased productivity are bright. During the first cropping season

in 1984, the average yield was about 15tons/ha which increased to 15.5 tons/ha in 1985 and

to 16 tons/hectare in 1986. The target yields of the Philippine Fruits and Vegetables

Industries, Incorporated {PFVII) in 1984 was 18 tons/ha which was revised to 35 tons/ha in

1986-87 because of its confidence gained in the last three years. In reality, the PFVII

obtained 20 tons/ha in 1984 which dropped to 14 tons/ha in 1985 but increased to 28 tons/ha

in 1986. The decrease in yield was principally due to fruit spoilage when it rained for three 3

3
p. 321, Villareal, Ruben L., Industrializing the Philippine Countryside, 1987
 P a g e | 14

days at the peak of harvesting and non-availability of farm labor during the February

revolution.4

During the 1986-87 cropping season, however, several farmers obtained yields higher

than 50 tons/ha and some even obtained 70-80 tons/ha. These yields could be further

increased when more location specific technologies are evaluated and perfected. Like the

PFVII, the Northern Fruits Corporatio n(NFC) in Sarrat, llocos Norte has improved its yield

from 26 tons/ha to 31tons/ha in its four years of operation. According to the Bureau of

Agricultural Statistics (BAS), the production of tomato increased from 188,800metric tons in

2006 to 204,300 metric tons in 2010 and registered an average annual growth rate of 3.87

percent. Likewise, area harvested increased from 17,100 hectares in 2006 to 17,700 thousand

hectares in 2010. Average yield recorded an annual growth rate of 3.08 percent. From 10.26

metric tons per hectare in 2006, it grew to 11.57 metric tons per hectare in 2010.The Ilocos

Region was the top producer with 69,620 metric tons of production in 2010 or 34 percent of

the country’s total tomato production. The other top producing regions and their shares to

total production were Northern Mindanao (25 percent), Central Luzon (10 percent) and

CALABARZON (9 percent).5

The average consumption of tomato in Laguna is six kilograms per consumer.

Tomato powder is more convenience to use than tomato itself. Table 2 show the historical

demand of tomato powder in Manila from 21,550 packs (1 kilogram per pack) in 2009 to

37,877 packs (1 kilogram per pack) in 2013. This condition is major in Manila during

occasional days.

4
p. 325, Villareal, Ruben L., Industrializing the Philippine Countryside, 1987
5
http://www.bar.gov.ph/chronicle-home/archives-list/220-january-2013-issue/3339-there-is-
gold-in-tomatoes
 P a g e | 15

Table 3. Historical demand of tomato powder in Manila, 2009-2013

Year Total demand per pack (1 kilogram)

2009 21,550

2010 22,628

2011 25,343

2012 29,144

2013 37,887

Source: Businesspeople, Inc. and New Flavor House, Inc., 2014

According to the municipality agriculturist of Nagcarlan, Laguna, the average supply

of tomato per year is 4,000 kilograms. Although production of tomato is now becoming a

profitable enterprise, most tomato farmers still do not produce the kind of tomato that is

required fearing that its production is seasonal. Hence, it is more convenient to use the

tomato powder since it is easy to store.

During the October-December 2017 period, production of tomato went down by 0.8

percent, from 28.34 thousand metric tons in 2016 to 28.13 thousand metric tons this year.

The decline was attributed to the following:

decreased area planted in Northern Mindanao (Misamis Oriental) as some farmers were not

able to plant due to high cost of production and in Central Visayas (Bohol) due to frequent

rains during planting time; and lesser and smaller fruits developed in Central Visayas

(Negros Oriental) due to frequent rains. Northern Mindanao, the biggest producer of tomato

at 16.40 thousand metric tons, shared 58.3 percent to total output this quarter. This was

followed by Ilocos Region with 8.7 percent and Zamboanga Peninsula with 6.4 percent.
 P a g e | 16

B. Target Market

C. Competition

Three big companies trading and producing tomato powder are located in Metro

Manila. These are the following:

a) Businesspeople, Inc.

Businesspeople, Inc. is a private corporation located in Brgy. Highway Hills,

Mandaluyong City. The main purpose of the company is to engage in the wholesale and retail

trading of plant extracts, nutritional supplements, food products, beverages, cosmetic

products, personal care products and any breakthrough product. They aimed to contribute to

mankind in the promotion of entrepreneurship as the best way of life to pursue and to help

the people of the world to fulfill of one's dream in order to live in abundance, success and

prosperity in life.

b) New Flavor House, Inc.

New Flavor House, Inc. is located in Potrero, Malabon City. It was formed in 1990 as

a company built on the foundation of creating quality flavor for the local and international

food industry. Since then, they have expanded to manufacture other product such as

seasonings, colorings, natural extracts and fragrances. The company have created a wide

selection of nature identical flavors, natural flavors and customized flavors. Their objective is

to be the vital source of tailored sensory innovation for our customers, bringing them closer

to nature with our focus on effective and creative flavor and material development. Their

business of constructing flavors and materials is based on the utilized innovation of nature,

science, and creativity.

c) Prime Flavors
 P a g e | 17

Prime Flavors Company located at 633 Pila, Catmon, Santa Maria, Bulacan is a

specialty food company, that engages in the manufacture, marketing, and trading of flavor

products and other specialty food products to the food industry in the Philippines. It operates

in two segments, Consumer and Industrial. The Consumer segment offers spices, herbs,

extracts, seasoning blends, sauces, marinades, and specialty foods to the consumer food

market through retail outlets, including grocery, mass merchandise. This segment markets its

products under the brand name PRIMO. The Industrial segment, under the brand name

PRIME FLAVORS, sells seasoning blends, natural spices and herbs, liquid flavors,

commodity items, and compound flavors to food manufacturers and the food service

industry.

D. Price Study

Tomato powder is sold in the large market for ₱ 560 per kg and ₱ 0.56 per gram.

Since the company will be the only tomato powder manufacturer in the province, it will sell

its product at ₱ 85 per product of 85-grams and ₱ 1 per gram.

E. Factors Affecting the Market

1. Price

During harvesting period, fresh tomato is cheap while during planting season, it is

sold at a higher price. Thus, pricing is critical during harvesting period since it will be

competing with fresh tomato.

2. Consumer preference

Since this is a new product, it will not be easy to convince consumers to buy the

product. They still prefer fresh rather than processed products.

 P a g e | 18

3. Rapid industrialization

Rapid industrialization of the target area means an increase in the number of

households. This would mean an increase in the number of customers that will patronize the

product.

4. Product quality

The quality of tomato powder depends on the drying equipment, thus the need for an

equipment with the ability to handle the product without the use of additives and produce a

superior product.

5. Source of raw material

The main raw material of the company are fresh tomatoes, thus it will compete with

customers purchasing fresh tomatoes. On the other hand, during planting season, it will be

difficult to ensure the supply of fresh tomatoes.

F. Marketing Program

At present, housewives uses tomatoes and/or tomato paste for their cooking

hence; they normally buy this from nearby groceries or wet market. The sellers do

not have in their stores a powdered tomato which could also be used in cooking or

food preparation.

The proposed marketing strategy will be based on the 4Ps of marketing

namely: product, price, place and promotion.

Tomato powder will be sold in ______. The advantages of the powdered

tomato from fresh tomato is one, it is not highly perishable which means you can

stock this in any place for as long as it is not yet expired. Two, it is convenient to

use because it is packaged in a bottle unlike fresh tomato which you have to cut it
 P a g e | 19

with a knife. Three, it might be lower in price as compared to fluctuating prices of

ordinary tomato. And four, it also tastes the same as an ordinary tomato.

G. Promotions

Promotion is an instrument used to convince the buyer to buy the product. The

company will use promotional materials such as tarpaulin and brochure. In

addition, it will give free samples in supermarkets and groceries. The product’s

packaging would also include recipes that include tomato powder as an

ingredient. The product will also be promoted with the power of social media (i.e.

Facebook, Twitter and Instagram). This will also act as a means to reach potential

consumers. The company can establish a website so that consumers can easily

search the product’s details in the internet. Finally, the company will join trade

fairs that will be sponsored by the Department of Trade and Industry.

H. Pricing

Compared to the ordinary fresh tomato, which has fluctuating price every week

or month, due to its seasonality, the powdered tomato has a fixed price regardless

of the fluctuating prices of a regular tomato. The company will set price that is

affordable, considering the fact that it would have a longer useful life compared to

a fresh tomato. A 30-day credit term will be given to the company's wholesalers

and retailers.

Tomato powder will be sold to wholesalers, groceries, supermarkets and

manufacturers who are producing tomato-based products.

V. Finance Aspect

VI. Social Responsibility

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Tomato is one of the most wildly grown vegetable food crops in the world,

second only to the potato. Crops of tomatoes have socioeconomic importance to

families, gardeners, farmers, laborers, marketers, retailers, chef and food and

restaurant industries.

Tomato powder is an alternative for fresh tomato. It is substitute for tomato

paste and tomato sauce. The powder could be kept longer than most tomato paste

and allows consumer to mix up exactly as much as they need for a fresh or clear

flavor. It is not easy to spoil, it is hygroscopic.

This type of product can help consumer to use exact amount of tomato and to

minimize cost and also help to reduce the number of unemployment rate. In a

review some consumers buy this product when they need a little more tomato

sauce or paste, but hate to open up a whole tomato. Tomato powder is very useful

in the off-season, when fresh tomatoes aren't very flavorful. It has a typical flavor

and taste of natural and fresh tomato free from artificial flavor. It is a free flowing

powder that retains the number of valuable nutrients and does not contain any

chemical preservative.

One of the nutrient contents in the tomato powder is lycopene. Researchers

Talvas J, Caris-Veyral C., and Guy L. et. al. found out an important connection

between lycopene, its antioxidant properties and bone health. It is a highly potent

antioxidant that provides protection against cellular damage by reactive oxygen

species and also implicated as a potential cancer chemo-preventive agent. The

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health benefit of tomato powder can also reduce the risk of heart disease and

prostate cancer.

There are 2 basic lines of research that have repeatedly linked tomatoes to heart

health. The first line of research involves antioxidant support, and the second line

of research involves regulation of fats in the bloodstream. It has also been shown

to decrease accumulation of cholesterol molecules inside of macrophage cells – a

large white blood cell that is an integral part of our immune system.

Tomato powder has many applications in the food industry for use in soups, baby

foods and snack foods, and as flavoring. It has high export potential.

The wastes of tomatoes are segregated into three plastic trash bags, the stems,

seeds and skins. The bag of stems is collected by the garbage collector

accommodated by the Sangguniang Barangay. The seeds of tomatoes are

collected by some businesses that can be an additional income at the same time

reduces the number of waste. The tomato seeds can be sold to the farmers while

the skins are free distributed to Leads Agri Products Corp. This corporation is

engaged in importation and distribution of environmental science and crop

protection products such as but not limited to pesticides and foliar fertilizers, and

agrochemical formulation plant management service contracts. The main office

the company is located at Paragon Plaza Edsa Corner Reliance Street,

Mandaluyong City. The seeds will be sold to the supplier of tomatoes from
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farmers of Nagcarlan, Laguna. The waste removal from the public areas reduced

the overall health risk and infestation of pest especially in urban areas and also

reduces the exposure of people to biohazard.

In establishing the business, it will employ 11 office managers and 12 factory

workers that would also help the economy of the city. During the construction of

the building, it will require skilled laborers for the high-end facilities of the

company. The business also provides the unique potential to serve and extend the

food industry with outstanding product quality and services to small and large-

scale industries.

VII. Appendix

Production Schedule

The pre-operating activities of the project are projected at 55 weeks from the first activity

down to the start of operation.

Immediate Time Duration

Activity Description
Predecessors (in week)

A Create a Business Plan NONE 8

B Purchase of Land A 2

C Secure permits and licenses A 3

D Construction of the Building B,C 25

E Search for supplier and potential stores D 3

Purchase and installation of equipments,

F D 4
sanitation and office supplies
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G Hire and train of employees F 3

Secure a contract with suppliers of direct

H E 2
materials and potential stores

Purchase of direct materials from

I G,H 3
suppliers

J Start of operation I 2

VIII.

IX.

X.

XI. CRITICAL PATH: A,CD,F,G,I,J

The critical path A, C, D, F, G, I, J include all of the required activities that

should be done before the start of operation. Licenses and permits, training of

employees, installation of machineries and equipments, construction of the

building are required to the operations and be acquired before the start of

operation

A. Plant Location

It refers to the choice of region and the selection of a particular site for building for

business or factory. The selection of a place for locating a factory is one of the problems,

perhaps the most important, which is faced by an entrepreneur while launching a new

enterprise. An ideal location by itself may not guarantee success but it certainly contributes

to the smooth & efficient working of an organization.

San Pablo is a third class city in the southern portion of Laguna province, Philippines.

It is one of the country's oldest cities. It composed of 80 barangays. By land area, it is the
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largest in the province of Laguna and according to the census; it has population of 264,589

people and 43,841 of household population.

The plant will be located at Brgy. San Diego, San Pablo City, Laguna. It is one of the

80 barangays of San Pablo City. It is located in the eastern portion of the city and bounded by

Brgy. Sto. Angel on north, Brgy. Sta. Isabel and Brgy. San Jose on south, and Brgy. Dolores

on north. The barangay has a population of 5,179. This serves to be a good place to this kind

of business because of the accessibility and availability of raw materials. Nearness to the

source of raw materials in Nagcarlan, Laguna, has a crucial effect on the profitability and at

the same time it helps to lessen the cost of the business with travelling of the fresh tomato.

There is also a moderately priced utility source like the source of water which is near to the

location so it has an easy access to this. This place is far from the residential area that it is

ideal for putting up a plant to it. Providing good service vehicles can ease the transport of the

product in different places in Laguna because it is located near to the market. There are very

much available skilled laborers in San Pablo and its near municipalities can give tremendous

values to the company.

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Figure 3. Map of Laguna

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Figure 4. Vicinity map

a. Factors Affecting Plant Selection

One of the important factors to be considered in choosing the plant is the source of

raw materials. Tomatoes are available in Nagcarlan, Laguna which is approximately 16 km.

in distance from the location. This is also important so that the product is available to target

market. The product can be easily moved from producer to retailers. The proposed location

has a ready available source of utilities like electricity, water supply and telephone

connection. The land has a fair market value of ₱ 2,904,000.00 with a land area of 14,520 sq.

meters and with a value of ₱ 200/sq. meter.

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b. The Site

The proposed location would be situated at the vacant lot. The exact address is Brgy.

San Diego, San Pablo City, Laguna. Beside the lot is a small plantation of tomato which can

also supply tomato if ever possible that could help to lessen the cost for the transportation or

the reinforcement of supply of fresh tomato.

c. Building Construction and Rental Requirement

The proposed location is a large mass of land. There would be a major construction of

4 months of the building and facilities. Materials and facilities that would be used in the

construction costs approximately ₱ 7,726,083.62. Labor cost for putting up the plant costs ₱

2,317,916.38 in which the workers would work 16 hours a day for 4 months. The total cost of

construction of the building is ₱ 10,044,000.00.

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Figure 5. The site

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Figure 6. Layout plan

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d. Plant Layout

The plant has a lot area of 14,520 sq. meters. It will be divided into the proposed office

and factory building, parking for delivery van, parking for standby van, loading bay, service

road, entry point, and exit point. The building floor area is 837.00 sq. meters. It will be

divided into the office and factory building which includes the fresh tomato storage, receiving

area of the tomato, washing room, slicing room, blanching room, stem and skin removal room

rinsing room, grinding room, packing room, storage of finish product, water pool for proper

sanitation, air shower room, and the drying room.

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Figure 7. Floor plan

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