THE FEASIBILITY

OF A RICE
RETAILING
BUSINESS IN
CONCEPCION 1

III. EXECUTIVE SUMMARY

Mission Statement
To provide quality rice and service that meets its customers satisfaction.

Vision Statement
To be the number one rice retailing store in Concepcion 1, Sariaya Quezon and to help community
by giving high quality and affordable rice.

Company Information
Sole Proprietorship is a type of business organization that is owned and controlled by one individual and in
which there is no legal distinction between the owner and the business. The owner receives all the profits (subject
to taxation) and has unlimited responsibility for all the losses and debts. Every asset of the business is owned by the
proprietor
Factors that were considered in choosing sole proprietorship as the form of business organization of Three
Rice Retailer.
1. The formation of sole proprietorship business is very easy and simple. No legal formalities are involved for
setting up the business excepting a license or permission in certain cases.
2. The entrepreneur owned the controlled the business alone. The entire profit goes to his pocket. This motivates
the proprietor to put his heart and soul in the business to earn more profit.
3. The entrepreneur takes all the decision of the business.

4. Each and every aspect of the business is looked after by the proprietor and the business.
5. The sole proprietorship business is undertaken on a small scale. If any change is required in the business
operation, it is easy and quick to bring the changes.
6. The scale of operation of sole proprietorship is small and also the employees work under his direct supervision,
the proprietor must maintain the harmonious relationships with the employees.
7. The cost of formation of a sole proprietorship is to minimal because no cost is involved in its formation
excepting the license fee in certain cases.
8. The dissolution of the sole proprietorship is also very easy. Since the proprietor is the supreme authority and
no regulations are applicable for closure of the business he can easily dissolve his business any time he likes.

IV. CONTENT
A. Company Description
Nature of the Business

One great factor in the success of a business is its name, for it will give the firm its own personality and will be
distinguished from other business. It will stand as a flagon which lays the performance of the business. With the
name alone it can attract the prospect investors and clients to respond to the product. The name of the firm can
give them a great impact and leaves a mark to the customers.
The name of the business is Three Rice Retailer. This will give an easy recognition because every
Filipino loves to eat rice three times a day.
Rice retailing enterprise is a kind of business that serves a quality of rice to a common people,
households or even the community. This business is usually organized by a sole proprietor. This
is build for the common interest of those consumers that can afford only one, two or three kilos
of rice just to fill their day-to-day needs.

 Market place

This feasibility study was conducted to determine the viability of Rice Retailing
Business located at Concepcion 1, Sariaya, Quezon. It is a small community that holds less than
2000 families and 1,239 households. An individual worker has a weekly income of P 4,500.00.

Cost of products

Name of Rice

Kilos

Price/Kl

Price/sack

Sinandomeng

450 Kilos

@P28.05/kg

P12, 622.50

Dinorado

400 Kilos

@34.00/kg

Wag-wag

350 Kilos

@25.50/kg

Milagrosa

250 Kilos

@25.50/kg

Long-Grain

350 Kilos

@25.50/kg

NFA Rice
Malagkit

Total

700 Kilos
50 Kilos

2, 550 Kilos

13, 600.00
8, 925.00
7, 012.00

@21.25/kg

8, 925.00

@34.00/kg

14, 875.00

P193.80kg

1, 700.00
P67, 659.50

Specific consumers
Concepcion 1 is by far from central markets thats why the consumer tends to go to
Bayan or Market.

There are several sari-sari stores located in Concepcion that also offers rice. They can
be our great consumer because part of their business is to sell retailed rice. We can sell them and
we can be a source of their business too. As mentioned earlier the 1,086 households in
Concepcion 1 is also our great consumer.

Competitive Analysis
The Santiagos Store, owned by Mrs. Melanie Santiago located near the Iglesia ni Cristo
is our main competitor. This is a small grocery store that offers different goods like shampoo,
soap, etc. They have retail of Hog Grower Feeds. They also sell rice. They sell only two
varieties of rice such as kis-kis and malagkit.

Prices of their Retailed Rice

KIND OF RICE
Kis-kis

PRICE PER KILO

32
35
36
38
39
42
40
43

Malagkit

50

Since our main competitor is only one, we can conclude that this enterprise is competitively
advantage. Our main focus for this proposed business is to sell rice and the surrounding
communities would also benefit in establishing this enterprise. Rice is a staple diet and a
necessity, it is hard to think even one Filipino will not buy rice. From that, there is already an
assurance that this business will succeed because buyers are already there.

B. MARKET ANALYSIS
Industry Description
Our proposed business of Rice Retailing is to be located in Concepcion 1, specifically near the
Walang Tamad sa Quezon landmark, owned by Mr. Avelino L. Andal. It is near the National
highway. It is very accessible to the consumers because it is along the national road.

Size of the primary target

The municipal of Sariaya in Quezon Province, consists of 43 Barangays. Concepcion 1 is one
of those Barangays located in Sariaya Quezon with a land size of 768.19 hectares. According to

the record of NSO or National Statistics Office, as of 2016 the total population of Concepcion 1
is 5,823.

Since location is a key factor that determines the success of the business, the proponents decided to situate at
Concepcion 1, Sariaya Quezon near the landmark of Walang Tamad sa Quezon. The business renting a
commercial space with a measure of 48 square meter. The space includes toilet room and sink. The proponents
chose this site because the place is accessible and surrounded by houses and also to those by passes along
Concepcion 1 Sariaya Road to Lucena and vice versa.

TOP VIEW

 Pricing and Gross Margin targets

Name of Rice

Kilos

Price/Kl

Price/sack

Sinandomeng

450 Kilos

@P32.05/kg

P14, 422.50

Dinorado

400 Kilos

@38.00/kg

Wag-wag

350 Kilos

@29.50/kg

Milagrosa

250 Kilos

@32.50/kg

Long-Grain

350 Kilos

@29.50/kg

NFA Rice

700 Kilos

@25.25/kg

10, 325.00

50 Kilos

@38.00/kg

17, 675.00

Malagkit

Total

2, 550 Kilos

15, 200.00
10, 325.00
8, 012.00

1, 900.00
P77, 859.50

Competitive Analysis
Building a Rice Retailing Business takes a lot of time and efforts to be successful. One of
the most important things to know when assessing the target market for a Rice Retailing

Business is who the competition is. Many people are tired of going or looking for rice to the
market and at the same time difficult to carry because of its weight. The proposed business of
Rice Retailing is advisable because instead of looking or going to the central market that may
cause our expenses to increase, the transportation cost of an individual would be lessen. Since
our competitor, the Santiago Store offers only two kind of rice and that are the kis-kis and
malagkit with different prices, our business will not just offer two kind of rice but seven (7)
varieties. It is important to have a variety of rice for the different taste and availability of the
consumers, because we are different in many ways. The prices of our product are very affordable
that the customers will come back time after time, or when their stock of rice diminishes.

Regulatory Restrictions
1. Employees must be polite at all times.
2. Proper hygiene must be maintained inside the working area.
3. Tardiness must be eliminated to avoid sanctions.
4. Customers are always right.
5. Reason for absences shall be reported two days before the day of absence.
6. No work, NO pay.
7. In case of emergency, the employees must contact the owner at the day incident occurred.

Sanctions
1. For the first offense of the above policies, the employee will be subjected to verbal warning.
2. For the second offense, a written warning will be given to the employee.

3. Habitual violation of these policies will be ground for termination.

C. ORGANIZATION AND MANAGEMENT

Management is a purposive activity. It is something that directs group effort towards the attainment of
certain pre-determined goals. It is the process of working with and through others to effectively achieve the goals

of the organization by efficiently using limited resources in the changing world. In planning a business, there is a
need for better understanding of the form of organization and a proper decision making on how to effectively and
efficiently manage the men, money, materials, machines and methods to attain the companys objective.
Organizational Chart
Owner/Manager
Helper/Driver 1

Helper/Driver 2

Ownership of the Company

Sole Proprietorship is a type of business organization that is owned and controlled by
one individual and in which there is no legal distinction between the owner and the
business. The owner receives all the profits (subject to taxation) and has unlimited
responsibility for all the losses and debts. Every asset of the business is owned by the
proprietor.
Profiles of the management

Qualifications of the board of directors/owners

1. The manager is the one who manage and supervises the overall operation of the business.
2. As the owner of the business, he/she has the responsibility of the firms debts and other
obligations of the firm. .

3. He/she is also responsible in decision making and other matters with connection to the business.

D. PRODUCTS AND SERVICES

Sinandomeng

This rice is also mostly bought by people because if you cooked it the grain is soft
and delicious. Sweet preferred for household consumption

Dinurado / Denorado

Denorado rice or Mindoro rice a type of rice popular in the Philippines because of its
great characteristics, quite expensive than the other rice. This rice is tender, slightly

sticky when cooked sweet and pearly white color. Good for household consumption
Wag-wag

Wag wag has been around since 1955 when it was first released by the Philippine
Seed Board for low land cultivation, primarily in Nueva Ecija and in flood affected in
land areas of Cagayan Valley. Derived from the Tagalog word wag wagin meaning to
shake off. Wag wag is a traditional rice variety that was extremely popular in the 60s
and 70s for its first-class grain quality. This type of rice medium grain rice which is
tender when cooked and having a sweet flavor.

Milagrosa

This type of rice is aromatic long-grain rice with almosttranslucent grain. It is very
soft, sweet and good smell when cooked.

Long Grain

This rice has milled grains that are at least three to four times as long as
they are wide. Due to its starch composition, it is separate, light and fluffy
when cooked.

NFA Rice
Malagkit

This type of rice is also called sticky rice, sweet rice or waxyrice that is mainly
grown in Southeast and East Asia which has opaque grains, very low amylase content
and is it sticky when cooked

E. MARKET AND SALES STRATEGY

Marketing Objectives
1. To determine if the proposed business is feasible in the chosen market
2. To determine the target market
3. To determine the size, nature and growth of total demand for the product.

4. To understand the market place and costumer needs and wants.

Competitive Advantage
Determining the competitive edge of the business against the competitors will help the business to improve
the products and services that the business offered. Since the business Three Rice Retailer is a large rice retailer in
Concepcion 1, the business must have more back up stocks of rice compare with the competitors, the firm also
offers many varieties of rice. The proponents also offer free delivery to volume costumer.

Growth Rate
Commercial Businesses have a good performance in Concepcion 1, businesses
became stable and have a high growth of income this is because of a increasing
population in the area.

Target Market
Unli Rice Retailer will focus on the needs of markets especially to the households near the location. Unli Rice
will also focus in the area where the target market is identified.

Marketing Strategies
Unli Rice Retailer is a rice retailer that offers many variety of rice for the costumer to have choices in
buying rice. Unli Rice Retailer is the only rice retailer in the Barangay Concepcion 1, Sariaya Quezon to
offer free rice delivery that helps the customers to maximize their time.

 Pricing Strategy
Setting the right price is a crucial step toward achieving the profit. Unli Rice Retailer is in business to make a
profit, but figuring out what and how to price a product may not come easily. Unli Rice Retailer depends its price
with the production costs mark-up which is 20% of the supplier.

Promotion Strategy
Advertising and promotional programs are one of the essential factors that the business
should take care of. The rate of the popularity of ones firm depends on how it is introduce to the
market. It is very important that the management will have effective and informative advertisement and
promotional program to be able to get the attention of its potential buyers. These are the promotional
strategies that the business will be using:

1. Flyers
These promotional papers will be distributed to the public to increase the popularity of the business.
2. Tarpaulin
These promotional material will be use to expand the exposure of the business, it will be posted to the public area
to attracts more potential customers