SQUASH CRACKERS

JOVIE PAGDILAO

BUSINESS PLAN

Department of Agriculture
MARIANO MARCOS STATE UNIVERSITY
College of Agriculture, Food and Sustainable Development
City of Batac 2906, Ilocos Norte

OCTOBER 2023
 Chapter I

EXECUTIVE SUMMARY

Description of the Business Enterprise

The business tries to make squash the main component of crackers. The business's

main goal is to provide a product made of vegetables that is suitable for children. Children

who dislike veggies are the business's main market, nevertheless. There are no restrictions on

family size, income level, or job classifications. We provide a cracker that even eating it

won't make you worry for your health because it is a vegetable-based product, satisfying the

customers' cravings on local breads. The supporters also point out the product's or business

advantages, disadvantages, opportunities, and threats.

Business aims and goals will align with the mission and vision to produce high-

quality, economical, inventive, and developing products that will give customers a distinctive

experience that leaves them satisfied.

The business has also developed a plan that will be properly thought out and put into

practice in order to retain the nutritious worth of its product. Raw materials will be the first

step, followed by production, packing, and delivery. Advertising or promotion will take place

between packaging and delivery to make the product known to the consumer or buyer. Two-

tiered distribution networks will be used in some areas of the business. The business will

expand online and use channels like Facebook, Instagram, and online stores in addition to

having a physical store in the manufacturing facility.

The market's size and make-up accommodate the people of Laoag City, Ilocos Norte.

By making the product available to all market sectors, the company will satisfy the unmet

demand.

It intends to sell the item to people of various ages. Nevertheless, kids who dislike
veggies are the company's main market. There are no restrictions on family size, income

level, or job classifications. Within the first year, the squash crackers raised $8,000,000 for

the entire business and P3,500,000 for the land. Due to the fact that squash crackers is a sort

of sole proprietorship, the owner will employ personal funds and bank credit obtained under

strict terms and conditions. The proprietors' personal funds will be used to cover any

unexpected events or issues.

Squash crackers have total expected sales of 3,168,000 for one year and 9,048,125 for

five years, for a total of 28,648,541 sales.The project's five-year Return on Investment, or

ROI, is 845.4992045%. The project's financial payback period assessment showed a final

result of 0.96 years. This indicates that the project's costs can be recovered sooner than

anticipated. Therefore, the project is both feasible and a worthwhile investment.

Chapter II
 BUSINESS OVERVIEW

External Analysis - Overview of Industry and Economy

Squash Industry

Squash, (genus Cucurbita), genus of flowering plants in the gourd family

(Cucurbitaceae).

Squash contains a wealth of vitamins, minerals, and antioxidants that have a number of

health advantages. Squash's antioxidants can be very helpful in lowering oxidative stress. In

turn, this might aid in lowering the risk of cancer.

Figure 1. Distribution of Squash Fruit, by Region Philippines, 2021P

A total of 16,819.34 metric tons of squash were produced in the Ilocos Region in 2021, which

is roughly 2.87 percent less than the 17,316.71 metric tons produced in 2020 (Figure 1).

With a contribution of 8.62 percent to the nation's 195,083.63 metric tons of squash fruit

production, the Ilocos Region came in sixth place among the squash fruit producing regions.

The provinces of Pangasinan and Ilocos Norte provided 36.25 percent and 35.06 percent,

respectively, to the total production of the Ilocos Region, while Ilocos Sur and La Union

contributed 16.15 percent and 12.53 percent, respectively. Production decreased by 8.80%,
3.538%, and 0.308% in Pangasinan, Ilocos Norte, and La Union, respectively.

Figure 2. Squash Fruit Production, by Province, Ilocos Region 2020 and 2021P

Internal Analysis

As a new business, my goal is to implement the vision of squash cracker, which is to produce

high-quality, economical, inventive, and developing goods that will provide customers with a

singular experience that leaves them satisfied. This purpose will also be applicable to the

province of Ilocos Norte. We sell squash crackers, which have a crunchiness and flavor, as

our major product.

The idea for the squash crackers arose from kids who dislike vegetables, and from this

concept the vegetable-based snack was created.

SWOT Analysis

STRENGTHS WEAKNESS

● Able to provide healthy options to ● New product

customer
● New in the business
● Uniqueness of the product that can

satisfy the customer ● Limited financial source

● Employees are knowledgeable

● Quality raw materials

OPPORTUNITIES THREATS

● Proximity of the market ● Lower prices of the competitor

● Increase advertisement with the use of ● Experience of competitors in the

social media platforms market

● Rise of online selling ● Shortage of raw materials

● Advancement of technology ● Sudden change of prices of raw

materials

● Availability of delivery service

Table 1. SWOT Analysis

 Chapter III

BUSINESS GOALS AND OBJECTIVES

Mission

Squash Crackers is committed to creating high-quality, reasonably priced, innovative

products that offer customers a distinctive experience that leaves them happy.

Vision

To outperform the competition and become the Philippines' leading producer of flavor-
infused, nutrient-rich crackers by 2030.

Goals and Objectives

❖ To innovate and develop products with the highest quality and standard

❖ To offer a child-friendly snack that is suitable to their preferences and health.

❖ To promote vegetable-based snack

❖ To maintain a high degree of quality

❖ To maintain the nutritional value of the business product

 Chapter IV

COURSE OF ACTIONS

Consumers of today desire more products and services of higher quality and variety at

lower prices, with less complexity and wait time. As a result, the supporters want to innovate

and create products of the greatest caliber and standard to meet consumer demand. The

procedure will start by extensively testing the raw materials in order to maintain a high level

of quality. These materials are examined by quality control inspectors, who also subject them

to other tests. Color and flavor are only a couple of the sensory attributes rated. These

evaluations provide the reassurance that the ingredients will consistently produce a batch of

pretzels. The finished product is evaluated for many of the same qualities that were examined

on the raw materials. Examining factors including color, texture, flavor, and appearance is a

task for chemists and technologists. The company can ensure that every batch of squash

pretzels sent to retailers will be of the same quality as those made at the food laboratory by

doing this.

Lastly, to keep the business product's nutritional worth. A food's nutrient content is

virtually always impacted by the kind of processing it undergoes

 Chapter V

BUSINESS MODEL FRAMEWORK

Key Partners Key Activities Value Proposition

 Municipalities  Sales and Marketing  Low price

 Bakeries  Production  No minimum of order

 Retailers  Marketing  Healthy product

 Suppliers  Customer Services  Innovation

Customer Relationship Customer Segments Key Resources

 Loyalty  People who don’t eat  Manpower

 Sending thank you vegetables  Financial

message  People who want healthy

 Giving promotions lifestyle

 Quality and assurance 

Channels Cost Structure Revenue Streams

 Websites  Payment processing fees  Asset sales

 Social media platforms  Production Cost  Usage fee

 Partner Channel Retailers  Sales Commissions  Web and Direct sales

 Suppliers  Cost of labor and raw  Advertisement Sales

materials used in

manufacturing,

Chapter VI

SUMMARY OF PRODUCTS

Product Features

Squash, the product's primary ingredient, provides consumers with a number of health

advantages and kid-friendly vegetable-based crackers. The craft paper bag, stand-up pouch,

and biodegradable plastic sauce cup will all be imprinted with the company emblem. The

squash crackers are primarily packaged in a stand-up pouch, and a craft paper bag will be

used as a take-home bag once the product has been purchased. The cup will contain the

dipping sauce for the pretzels.

Figure 3. Stand up pouch

 Figure 4. Craft paper bag

Benefits/Advantages

Health benefits are what customers value most while purchasing the product. We are all

aware of how rich in vitamins A, B6, and C squash is. Due to its low calorie content and high

fiber content, which also helps the digestive tract get rid of cholesterol and control blood

sugar, squash is also referred to as a superfood. By purchasing the product, which is portable

and can be eaten anywhere, a client can receive convenience from the business in addition to

health benefits.

Pricing strategies

Many people are cost concerned in this rapidly changing environment. In this sense,

the prospective business opted to charge reasonable yet aggressive prices for the products.

The pricing strategy will be based on the clients' earlier purchases of regional breads or

pastries. The price of a pack of squash crackers is PhP55.00. When you purchase two or more

of a product, we will deliver the same product in a smaller pack size as a freebie as part of

our promotion and new company introduction. After the promotional event buy two get one
free, the prices remain the same, but because you are one of our devoted customers, if you

buy two or more, you can earn a discount of up to 20%.

Chapter VII

MARKET MODELS

The market's size and make-up accommodate the people of Laoag City, Ilocos Norte.

By making the product available to all market sectors, the company will satisfy the unmet

demand. It wants to sell the item to people of various ages. Nevertheless, kids who dislike

veggies are the company's main market. There are no restrictions on family size, income

level, or job classifications. The inhabitants of Laoag City, Ilocos Norte, will be the target

market for the planned firm. My customers will include Laoag City residents and business

owners who operate modest bakeries, sari-sari shops, mini grocery stores, even schools and

market booths. Customers of all ages and income brackets are its main demographic. such as

college students, families of various kinds, and local government employees and politicians.

The company will use two-tiered distribution networks for its channel distribution.

The business will have a physical store in the manufacturing complex in addition to using the

internet and online marketplaces like Facebook and Instagram.

Since my company also encourages online selling and shopping, the proliferation of

online shops creates opportunities for business owners like us to offer the products. Because
the business advertises on social media sites like Facebook and Instagram and gathers orders

there, customers may schedule orders more conveniently. Through a collaboration with a

delivery service provider, the products will be delivered to online customers.

CHAPTER VIII

FINANCIAL PROJECTIONS

Within the first year, the squash crackers raised $8,000,000 for the entire business and

P3,500,000 for the land. Due to the fact that squash crackers is a sort of sole

proprietorship, the owner will employ personal funds and bank credit obtained under

strict terms and conditions. The proprietors' personal funds will be used to cover any

unexpected events or issues.

Squash crackers are expected to sell 28,648,541 units over the course of five years,

with total anticipated sales of 3,168,000 and 9,048,125 respectively. For a period of five

years, the project's ROI is 845.4992045%. The study of the project's financial payback

duration revealed a final result of 0.96 years. This means that the cost of the project can be

repaid sooner than anticipated. The project is thus viable and a worthwhile investment.