Zaragoza National High

School
San Rafael, Zaragoza, Nueva Ecija

FEASIBILITY STUDY

OF

A HOME-BASED COOKIE BUSINESS

A Feasibility Study Presented to the

Faculty of the Zaragoza National High School

San Rafael, Zaragoza, Nueva Ecija

In Partial Fulfillment

Of the Course Requirements for the Degree

Master in Business Administration

ADRIENNE G. REYES

MAY 2021
 Zaragoza National High
School
San Rafael, Zaragoza, Nueva Ecija
 Zaragoza National High
School
San Rafael, Zaragoza, Nueva Ecija

CHAPTER I

Introduction

A home-based business is any enterprise for which the principal

administrative and managerial activities take place within an individual's personal

residence. People start home-based business ventures for a wide variety of reasons.

The main driving force behind the growth of home-based businesses is the

increasing capability and availability of computer and communications technology.

Running a business out of the home offers a number of advantages,

including time savings, control over working hours and conditions, independence,

and flexibility. Starting a home-based business is also considerably cheaper than

starting a business in rented facilities. In addition to saving money on overhead

expenses.

Successful home-based business owners are usually good at what they do

and enjoy doing it. It is also helpful to be independent, self-sufficient, and flexible.

Other keys to success include being able to sell oneself and the business, and

staying on top of personal and business finances. A home-based business may be

related to an individual's previous occupation, but may also be based upon a hobby

or the discovery of a unique business opportunity. In any case, the idea should be

evaluated with an eye toward market potential and competition. Once the business
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is up and running, the business plan sets forth goals and standards for management

and serves as an operational tool to measure progress.

In America, a cookie is described as a thin, sweet, usually small cake. By

definition, a cookie can be any of a variety of hand-held, flour-based sweet cakes,

either crisp or soft. Each country has its own word for “cookie.” We know as

cookies are called biscuits in England and Australia, in Spain they’re galletas.

Germans call them keks or Plzchen for Christmas cookies, and in Italy there are

several names to identify various forms of cookies including amaretti and biscotti,

and so on. The name cookie is derived from the Dutch word koekje, meaning

“small or little cake.” Biscuit comes from the Latin word bis coctum, which

means, “twice baked.”

Cookies are described as a flat, small cake, cookies are a long-loved snack

that has been around for thousands of years. Originally, cookies had one purpose in

the kitchen. Bakers used them to test the oven by baking small amounts of cake

batter before baking an entire cake. Since then, these “small cakes” have evolved

and now hundreds of recipes for cookies are available today, cookie shops are a

common find and consumers can even buy cookies online.

There are 7 billion chocolate chip cookies eaten in the United States every

year, with about 50% of those homemade cookies.

Who Invented the Chocolate Chip Cookie?

 Zaragoza National High
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Ruth Wakefield and her husband Keith owned a Toll House inn in the

1930’s. Travelers and their horses were welcome to stay at the inn, rest, and eat

meals prepared by Ruth for her guests. Often times, she made cookies for them to

dine on. Butter Drop Do cookies were a popular choice in particular at this time.

As she was making these one day, Ruth decided to add chunks of a Nestle semi-

sweet chocolate bar to the batter. Her assumption was that these chunks would melt

when the cookies were baked. However, the chunks only softened and still held

their original shape. As a result, chocolate chip cookies were born. These cookies

eventually became a big hit and are now considered some of the best cookies ever

made.
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1.1 Name of Firm

The business will carry the name Dip or Dunk Cookies. A business that offers

freshly baked quality cookies which is a perfect complement with milk or just

by itself.

1.2 Location of the Firm

The business will be home-based. The researcher thought of this business will

succeed even in the comfort of your own home. Not worrying about the rent

and the amount of money that the business owner will invest to start up the

business.

1.3 Vision

The researcher envisions the business to be one of the known product in a place,

which the consumers will surely want more and share with loved ones.

1.4 Mission

The business’ mission is to serve quality and consistent product, expand and

release new flavors and products, to promote the business that will encourage

more sales.
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Statement of the Problem

This feasibility study is intended to evaluate the feasibility of having a

home-based cookie business. Specifically, it aims to evaluate and analyze the

following areas:

1. The Technical aspect of the study

1.1. Product Description;

1.2. Product Process and;

1.3. Equipment/Materials

2. The Marketing aspect of the study

2.1. Competitive Condition;

2.2. Target Market and;

2.3. Demand

3. The Financing aspect of the study

3.1. Capitalization and;

3.2. Sources of Funds

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4. The management aspect of the study

4.1. Form of Ownership and;

4.2. Company Policies

Significance of the Study

The study will help the future business owners to have a concrete plan about

having this type of business. The researcher wants to provide a clear path on which

others may follow. During the time of lockdown businesses stopped and some do

not have jobs, this type of business is a way to gain profit given the circumstances.

To the customers- this study will provide the consumers freshly baked

goods delivered on their front door. This business will satisfy the consumer’s

cravings without take the risk of leaving their houses.

To the teachers- this study will not just comply to the requirements, but also

to help the teachers with knowledge about baking or those who would like to start

a small business.
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To the researcher- the study will provide enough proof that the business

will succeed with just the right recipe and target market. The researcher will have

an idea regarding the c

Scope and Delimitation

This study of the “Dip or Dunk Cookies” home-based business is delimited

to Zaragoza, Nueva Ecija, and will be based on the management, marketing,

technical, and financial aspect of the business. Adults, teenagers, and the kids will

be covered as part of the respondents. The product will be disseminated through

ordering online, posting on social media accepted by the seller within Zaragoza,

Nueva Ecija from those who are willing to purchase the product and be delivered

at a certain date and time.

 Zaragoza National High
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CHAPTER II

Research Method

This study will use a descriptive type of research. It aims to accurately and

systematically describe a population, situation, or phenomenon. It can answer

what, where, when, and how questions, but not why questions.

Descriptive research design can use a wide variety of research methods to

investigate one or more variables. Unlike in experimental research, the researcher

does not control or manipulate any of the variables, but only observes and

measures them. (McCombes, 2020).

Procedures and Source of Data

The following techniques were used to gather data for the study:

1. The researcher uses questionnaires. It is a data collection tool in which written

questions are presented that are to be answered by the respondents in written

form it consists of a set of questions or other types of prompts that aims to

collect information from respondents.

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2. Internet research is the practice of using Internet information, especially free

information on the World Wide Web, or Internet-based resources (like internet

discussion forum) in research. Through searches on the Internet, hundreds of

thousands of pages can often be quickly found with some relation to a given

topic.

3. A questionnaire was employed to gather data from respondents regarding

various aspects of the business. Completion of the questionnaires generally

took the participants an average of no more than ten minutes. The responses of

the participants were dealt with the utmost confidentiality.

Financial Tools

According to investopedia.com, the payback period refers to the amount of

time it takes to recover the cost of an investment. Simply put, the payback period is

the length of time an investment reaches a break-even point. The desirability of an

investment is directly related to its payback period. Shorter paybacks mean more

attractive investments.

Formula:

Payback period = A + (B/C)

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Return of Investment = A performance measure used to evaluate the

efficiency of an investment or to compare the efficiency of several different

investments. Note: The payback period is the number of months or years it

takes to return the initial investment. To calculate a more exact payback

period: payback period = amount to be invested/estimated annual net cash

flow.

Data Analysis

The survey responses were counted, tallied, summarized, analyzed, and

interpreted using the software Microsoft Excel. The following were the statistical

tools used in the study:

A. To summarize, present, and simplify the large set of data, descriptive

statistics such as frequencies and the system of percentage was used. The

formula for percentage is as follows:

% = (f/N) x 100

where:

% = percent

f = frequency

N= total number of respondents

 Zaragoza National High
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B. Weighted mean was used to summarize and describe the responses of the

participants to the questionnaire. The formula utilized is as follows:

Weighted Mean

X = Σ𝑥𝑤/Σ𝑤

where:

X = weighted mean

x = measurement or value

w = number of measurements

C. To arrive at a verbal description for the mean of the responses in the

statements that composed each scale, the following arbitrary numerical

guide was used

Weighted Mean Verbal Description

3.25 – 4.00 Strongly Agree

2.50 – 3.24 Agree

1.75 – 2.49 Disagree

1.00 – 1.74 Strongly Disagree

 Zaragoza National High
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CHAPTER III

Marketing Aspect

The objectives of the marketing aspect are strategically centered on 3 criteria:

1. To create strong consumer awareness towards a freshly baked quality

cookies available in the market;

2. To establish wide brand recognition through the capture of market shares

in the pastry and dessert section, and;

3. To build connection with consumers.

Market Analysis

The cookie business is not as well-known in the rural areas as it is in the

urban areas. City people are well aware of the availability of food delivery services

like Grab, Food panda and others. Which gives them access to foods available

online. Unlike people living in the cities, the researcher would like to also provide

food delivery service limited to the products available in the said business. Given
 Zaragoza National High
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the pandemic, people are afraid to go out and this is a great opportunity to make

the product easy access.

Today as cafés, coffee shops, milk tea shops are booming the business may

also supply to those kinds of businesses. Millennials and Gen Zs are all aware of

Facebook, Instagram and Tiktok, these social media platforms will be the medium

of the business. Good pictures and captions are the keys for the business to reach

the potential market.

Marketing Mix

The Product
 Zaragoza National High
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Figure 1, Dip or Dunk Cookies product, choco chunk walnut cookies.

Ingredients:

Flour, Brown sugar, Butter, Vanilla extract, Heavy cream, Baking powder, Salt,

Eggs, Dark chocolate and Walnuts.

Business Logo

Figure 2, Dip or Dunk Cookies business logo.

 Zaragoza National High
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The brown background of the logo signifies the freshness of the cookies

baked until brown. Crispy on the outside but soft and chewy inside. The milk and

the splash to represent the act of dipping or dunking the cookie into the milk. The

color red for the outline of the name for it to be easily recognized and be

remembered.

Pricing

Figure 2, Dip or Dunk Cookies packaging.

 Zaragoza National High
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The cookies are sold per box of 12, which costs 195 pesos and box of 20

which costs 325 pesos. The researcher thought that it would be easier to sell the

products by the boxes, for it will cost less that to pack each cookie for delivery

purposes as well.

Promotion

How the business owner communicates to the client about your products and

services. For instance, the owner might place ads on various platforms, do special

promotions, employ a public relations firm, or do other marketing activities, like

posting flyers, attending events, or sharing in social media.

The final part of the cookie business marketing plan is the promotions

section. The following are some promotional methods you might consider:

 Social media marketing

By connecting with the customers in meaningful ways, can

build brand loyalty that keeps the business growing, no matter how

the market evolves.

 Zaragoza National High
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Reach the right audience with ads, social media platforms like

Facebook provides an option to pay for ads to be shown on to the

targeted audiences.

 Reaching out to local vloggers and influencers

Using promotion through vloggers and influencers increases the

reach of the product. Once the product is recommended or

endorsed by a known individual the greater it is to be viewed,

liked of even gain more sales.

 Partnerships with local organizations

Another way to build connections and increase the consumer

awareness, is to make partnership with local coffee shops or

stores that may showcase your product in exchange for

discounts and commission percentage.

 Having promos and giveaways

For example, having a free cookie when the consumer buys a

box. Creating mechanics for the consumer to be qualified to

join the giveaway, which include liking the page, sharing it to

their account and tagging friends expands the viewers and

potential buyers of the business.

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Target Market

The business’ target market will be the consumers with sweet tooth or cookie

lovers. Be it a professional, student, businesswoman/man, teacher, mother,

father, sister, brother, and even the children.

Demand and Supply Analysis

Since the proposed business is located in the business owner’s respected

place of living, given that the owner is living in Brgy. Sta. Cruz, Zaragoza, Nueva

Ecija. The researcher conducted a market survey, analysis, and gathered

information to its vicinity.

Based on PhilAtlas, the population of the Municipality of Zaragoza as

determined by the 2015 Census was 49,387.

FORMULA:

Estimated Population X percentage = Prospective Customers Annually

REFERENCES

https://www.inc.com/encyclopedia/home-based-business.html
 Zaragoza National High
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https://whatscookingamerica.net/History/CookieHistory.htm

https://www.proflowers.com/blog/who-invented-cookies/

https://grow.google/intl/en_ph/guide-engage-your-customers/?

utm_source=SEM&utm_medium=CPC&utm_term=&utm_content=adgroup3&ut

m_campaign=ecommerce&gclid=Cj0KCQjw4v2EBhCtARIsACan3nyIiOXGFNk

TkmBfB-sHjU9qIfsehMeJfe9CfjH2V9oVY9keNP33fkYaAsIWEALw_wcB

https://www.growthink.com/businessplan/help-center/cookie-business-plan

https://www.philatlas.com/luzon/r03/nueva-ecija/zaragoza.html