Philippine E-Journals

A Project Feasibility Study on the Production and Marketing of Coffee Mix with Paragis Extract

Almira Joyce E. Caringal | Ma. Cecillia AJ G. Baroja | Jemimah Lo Ruhama M. Vergara

 

Abstract:

Coffee production, as agri-business sector of the country, contributes to the development of the economy of the country. The proponents found a positive potential of the proposed business, the production and marketing of cost-competitive instant coffee mix with Paragis extract. Paragis (Eleusine Indica) can be an alternative for the existing herbal coffee mixes in the market. By providing benchmarks of price range of coffee mixes around Lipa City, specifically, the chosen target modern trade channels MS Supermarket, Masuerte Supermarket San Nicolas and Masuerte Supermarket CM Recto, the proponents had developed a perception map to illustrate the competitive position of the proposed product. Market acceptance of the proposed product was determined from 400 respondents as the sample size. There is a great demand for coffee in the Philippines. According to the study conducted by Kantar Worldpanel in 2015, coffee is considered as the Filipino’s most staple beverage. Most of the coffee drinkers consume an average of two cups per day with only a small difference from the percentage of those consuming one cup a day. The trends of projected demand, projected supply, unsatisfied demand, and production volume were progressive. The proposed business passed all the financial analysis tests, making it viable to be pushed through.