A.Y.
2022-2023
Republic of the Philippines
Mindanao State University- eneral Santos City
College of Agriculture
SY 2020-2021
CANDY SQUASH PRODUCT DEVELOPMENT PLAN,
MARKET LAUNCHING PLAN AND
EVALUATION PLAN
Presented to Mrs. Lily De Cuadra
Faculty, Department of Animal Science
College of Agriculture Mindanao State University
Fatima, General Santos City
In Partial Fulfillment for the
Requirements of the
Fp1: agribusiness food processing
Submitted By:
Joshua Penaranda Salce
June 2022
A.Y. 2022-2023
Table of Contents
Introduction .............................................................................................. 1
Objectives ............................................................................................... 2
Vision .......................................................................................................2
Mission ..................................................................................................... 2
External Environmental Analysis
Porters 5 Forces .................................................................................3
Pest Analysis ...................................................................................... 5
Swot Analysis ..................................................................................... 6
Place
Target Population .............................................................................. 10
Target Market ..................................................................................... 11
Marketing channel……………………………………………………, ...... 12
Price
Pricing strategy .................................................................................. 13
Candy Squash Financial Analysis ...................................................... 14
Promotion
Advertising and promotion strategies ..................................................16
Flier.....................................................................................................17
References ......................................................................................... 20
A.Y. 2022-2023
Introduction
People who eat candies and specially vegetables candies rarely consider
its food value-- instead they eat candy because they like it. The variety of
candies available is probably greater than any other foods.Attractive
presentation and packaging and its gift value are additional factors in its favor.
Our product is named “Candy Squash”it comes from the name ‘Candy
Crush” we choose this name because its catchy. For it will catch the attention of
the customers because of its unique name. We created a Candy that has
something new and twist to the product which is it made from originally pure
squash.Our product is the combination of nutrition, convenience and reasonably
priced. Knowing that the awareness of healthier sweet candies is on the rise.
We guarantee that our product will be beneficial to its customer by giving them
the satisfaction or contentment they’ve been looking for a candy.This business
will be located here in General Santos City because it is best for accessibility,
availability of our target market.Candy Squash is a special candy that are made
up of pure squash. The price of Candy Squash will strive to be competitive with
the market.
Candy Squash is very timely and relevant today.Because of this Covid-19
break out there will be time that virtual world will be the extension of the real
world.In connection with these our product provides consumers a vitamins that
is very good for the eyes because Squash provides Vitamins that is very good
and essential for the eyes. Everybody will surely love these candies and can’t
resist to take a bite of the nutritious and flavorful pieces of sweetness. Affordable
prices comes with quality guaranteed products.
So, what are you waiting for? Have a bite of these Candy Squash Candies!
1
A.Y. 2022-2023
Objectives
Every business plan needs a section that contains marketing objectives.
This is the spot in the business plan where realistic goals are stated and how to
market the new venture. Our business, “Candy Squash” will target the children
as its major consumers with a mix of online and offline advertising to highlight
the product. Our marketing will focus on local level over the first year through
various promotions. We intend to introduce our brand to 8, 000 number of
people during this time and encourage their continued interest through ad
campaigns and local events.
Within the first year, we plan to accomplish profitability by reaching out to
our consumers especially the children through enticing and convincing radio/TV
commercials and also a quality our consumers can trust. And continue this
production for the next year to come, and then we’ll expect a double-digit growth
rate.
Vision
To maintain dynamic and continuous development of the Candy Squash while
maintaining the high quality of our product.
Mission
Our mission is to make the world more nutritious, to offer our little and adult
customers with products of the highest quality, to monitor and follow market
trends and to harmonize the company’s economic development with
environmental protection.
We achieve that by:
• Permanent modernization of machinery, product innovation,
productivity and creativity
• We are ready to learn new things, to accept new ideas and criticism
• We maintain the strictest standards in the sphere of food safety, work
safety and environmental protection
• We allow professional growth and self-fulfillment to our employees
2
A.Y. 2022-2023
External Environmental Analysis
Porter’s 5 Forces
➢ Rivalry Among Competing Firms
Rivalry among competing firms is usually the most powerful of the five
competitive forces. The large number of firms is an external factor that
intensifies competitive rivalry. Knowing that candies has gained more popularity
in recent times. Through this, a lot of business mined people tends to put up this
kind of business in attracting a lot of consumers especially the kids in satisfying
their wants. And since candies are very sweet, salty, and bitter many competing
firms are into this kind of business.
Competition in the market is not easy and is high because there are a lot of
competitors around that also offer different flavor of candies. Our very own
unique product which is the Candy Squash gives a healthy benefits to the
consumers especially the students today. Due to the pandemic, students are
forced to do online class that they need to focus on their laptops or cellphones.
In this situation a lot of students are having a poor eyesight. But with our own
product, it will help a lot especially for the students that are having online
classes.
➢ Potential Entry of New Competitors
Indeed when entering into the business world it is always possible that you
have a lot of competitors in the market. The threat of new entrants of candy
squash is high. Since people nowadays has a unique ways of thinking such
kinds of products. It will then increase the competitors in the market. Our very
own innovative product has a lot of benefits that gives the consumers especially
the students to consume our own Candy Squash.
3
A.Y. 2022-2023
➢ Threat of Substitutes
The threat of substitutes is low. Since only a few offers this kind of product
in the market and competition among others will be easy. The Candy Squash is
still new to the market. Presenting it to the market will give a big opportunity
because of the unique packaging and benefits that it has to offer.
➢ Bargaining Power of Suppliers
Our own product which is the “Squash Candy” has its own agricultural land
that has a squash planted on it. The producers will not be having a hard time
looking for a supplier since it is always available every time. The candy is made
from sugar and squash. The bargaining of supplier is low.
➢ Bargaining Power of Consumers
Every consumer has its different taste and preferences in choosing what
kind of candies they want. We can’t force people to buy a product that we’re
selling unless that the candy that our business is offering is delicious and gives
healthy benefits to the consumers. Since a lot of consumers today are very
health conscious we’ve decided to make the Candy a more healthier one.
Candy Squash is high in Vitamins A and C and contains a good amount of lutein
and zeaxanrhin, two antioxidants that that help to protect the retina.
The bargaining powers of consumers is low since our product is not yet well
known unlike the other brands of candies. And this product is still new to the
market. Through the power of social media we can able to post it online and
introduce to the world about how amazing and healthy our product is.
4
A.Y. 2022-2023
PEST Analysis
Macro factors are factors that we totally have no or extremely little control
of. It is not just looking at a segment of the industry, but the effects these factors
have on the whole industry. An example of an audit tool is the PEST analysis,
which identifies the opportunities and threats of the external environment, which
then helps our company to develop appropriate plans.
➢ Political Factor
Launching up a business is not quite easy because you need to register
first. For us to operate, getting a business permit and licenses is needed. Paying
of taxes is also a requirement in having a business that helps in the development
of the Philippines. This will be a great opportunity because it secures our
reputation as a legitimate business. And helps in avoiding legal problems with
the government.
➢ Economic Factor
The land and labor are used in the production of Candy Squash. The labor
is the harvesters of the squash and the factory workers that processes the
squash. While for the land factor is the squash that are made into candy. Capital
is also one of the requirement in making the Candy Squash to be successful.
Without money, production of goods and services will not be achieved.
Due to the global pandemic happening, there are strict border lockdowns
harvesting, transport, and trade of agricultural commodities are heavily affected.
But in today’s situation the level of strictness in delivering food and products is
not that strict anymore. This is a great opportunity for the business to send
products all around the country.
➢ Socio-cultural Factor
The social environment includes all the attitudes, behaviors, and changing
demographic, it all affect the business. Nowadays, individuals want to consume
less sugar and lower calorie foods. Candy Squash is focusing more
5
A.Y. 2022-2023
on a healthier candy that gives a lot of benefit especially to people that has a
problem on their eye sight.
Some consumers are not fun of eating such kind of healthy vegetables. But
our product made a twist, we made the squash into a candy. It is an alternative
way of eating squash that has a lot of benefits. This is an opportunity for the
business in producing a healthy candy.
➢ Technological Factor
Technology is very important in creating packaging, food labels and the
production of our product which is the “Squash Candy”. The advancement of
technology helps every business to reach buyers in new and even easier
methods.
Technological development can be a big opportunity for a business. It
makes the work more productive. Posting the product in the social media can
have a big impact since our product is still new in the market. A lot of consumers
will be curious about how healthy our product is. In which it could help in having
a good eyesight for the students and also for the individuals who needs it. This
would be a great opportunity for the business to spread widely in the market.
SWOT Analysis
The following are the strengths and opportunities of our business which we
possess to bring a better range of candies to satisfy the customers. We will
minimize our weaknesses and threats while finding solutions to overcome them.
Strengths are,
• The logo which speaks to the customer and attract them. Especially
youngsters will be keener on the logo.
6
A.Y. 2022-2023
• Main concern will be more on colors and flavors which will help to attract
more customers.
• Attractive packaging which could be used for other purposes even after
the candies are consumed.
• Strong management team to organize plans for future and for past. As
well as developing good skills, sales strategies to attract more customers
and also to maintain good faith with the wholesalers and retailers.
Weaknesses are,
• Higher innovation cost has to occur to invent new candies or recreate
the product itself.
• Efficiency is less as incapable of paying higher salary to staffs.
• Less exposure to the wider market
Opportunities can be,
• Easy access to market
• Even in inflationary situations people will tend to buy the candies
• Special seasoning offers
Threats are,
• Since it is easy to start up more competitors will be there.
• As customers that are not health conscious it will affect the sales
volume
• Imposing new regulations by government towards the candy industry
7
A.Y. 2022-2023
Product
Product Levels
Core product
Consumers especially the students that are busy in online classes will be
able to acquire nutrients that are essential in their daily activities during online
classes. Vitamin A is highly present in squash and it is important for normal
vision, stronger immunity, and it helps the heart, lungs, kidneys, and other
organs in the body to work properly. With the students homeschooling and busy
facing their gadgets, Vitamin A is helpful to keep focused and minimized the
risks that gadgets may bring to the students. Antioxidants are also present in
squash such as alpha-carotene, beta-carotene, and beta-cryptoxanthin, and
those are important in neutralizing free radicals in the body that is when
excessive could result in chronic illnesses like heart disease and cancer. Those
could also lower the risk of having eye diseases, cancer, and other conditions.
There are still other high-value nutrients that are present in squash such as
lutein,zeaxanthin, potassium, vitamin c, and fiber, and those are all beneficial
for eyesight and the immune system.
Physical product
The candy will be made of sugar and squash specifically pumpkin. Sugar
will be used as a coat for the pumpkin and it will be colored orange just like the
pumpkin and it will put inside a white-colored pack with an orange outline on the
pack. The candy is round-shaped with a diameter of about 1.3cm or just smaller
than a penny. Choking will not be a risk especially for the kids as the candy will
not be that hard and will be easy to chew.
Augmented product
The candy comes with a refreshing feeling when chewed and sleepiness
during online classes and activities will be minimized. That is due to the
presence of sugar and other nutrients from the pumpkin. The candy is
specialized for the students that are taking on online classes and other
8
A.Y. 2022-2023
consumers that are working with gadgets during this time and will help
minimize the risks that can be acquired like stress and visual problems.
BRANDING
The product’s brand name is Candy SQUASH. It is written in Serif-Bold-
Italic with the word candy written in a sentence case and colored dark orange
and the word squash is written in uppercase and colored with light orange. At
the background of the Candy SQUASH is an image of a sliced pumpkin and at
the front of the words is the representation of the finished candy squash product.
PACKAGING
9
A.Y. 2022-2023
Product’s packaging will be white-colored with the brand name written at the
front and the nutritional facts and ingredients will be written at the back. The
packaging will also be outlined with color orange. Each pack will contain
25pieces of candy squash. Packaging is made from a nature-friendly plastic,
that is, it will not cause any pollution in the environment when it is emptied and
thrown.
Place
Target Population
The target market for the candy market is both the young population and
adults with a sweet tooth. Consumers of all ages satisfy their sugar cravings
with candy thus the growing availability of different varieties of candies has led
to the high demand for candies, fueled by impulsive purchase behavior of the
consumers. The target markets can be divided into children and adults, and then
further subdivided into consumers with allergies, consumers with dietary needs,
and consumers who are health conscious.
The adult consumer population is subdivided into different segments
depending of the different profiles of the consumers.
Greedy consumers
They can eat candies any time of the day. For them, candies are
perceived as a pleasure, an anti-stress or a way to regain energy. Most of the
time, they eat candies at home. They don’t care about the healthiness. They like
chocolate and caramel candies, bubble-gums and all kinds of fruit-flavored
candies.
Occasional consumers
Adults who don’t usually buy candies. They are likely to buy candies
when they go to cinema or when they are in holidays. Candies are sweet little
treats, they don’t feel guilty when eating them. They usually buy small pockets
or single pieces.
Sugar-free consumers
10
A.Y. 2022-2023
the target the most difficult to reach because they feel guilty when eating
a candy. We can reach them with healthy, sugar-free and natural candies. For
example, sugar-free bubble gums.
Reasonable consumers
they are small consumers. They consume candies for special
occasions (Birthdays, Halloween, parties). They are mostly women from 35 to
44 years old with kids between 18 months and 14 years old and they are more
interested in healthy and natural candies.
The children’s consumer population is also subdivided into different
segments depending of the different profiles of the consumers.
Young kids (< 8 years)
Their parents make the decision to buy candies or not. These young
kids want colorful candies with fun shapes.
Kids and teenagers (> 8 years)
because they are growing up, they want to discover new things. In term
of candies, they want to discover new sensations like spicy candies that is
successful with them.
Target Market
Our target populace for our Squash Candy are students. It is convenient to
sell the product in areas with nearby schools located in Tupi, South Cotabato
and Brgy. Fatima where a lot of local stores that surround the area or to be sold
in school canteens and having our product sold at nearby stores or school
canteens helps students to have an ease of access of purchasing our product.
11
A.Y. 2022-2023
Marketing Channel
The primary purpose of any channel of distribution is to bridge the gap
between the producer of a product and the user of it, whether the parties are
located in the same community or in different countries thousands of miles
apart. The channel of distribution is defined as the most efficient and effective
manner in which to place a product into the hands of the customer. The channel
is composed of different institutions that facilitate the transaction and the
physical exchange.
12
A.Y. 2022-2023
Price
PRICING STRATEGY
Starting a new business or launching a new product requires thorough
planning and brainstorming. And a critical piece of that planning is deciding on
how to price the products or services. As the pricing strategy that will use
dramatically impacts the profit margins of a business and determines the pace
of the business growth. That's why implementing the best in our business is very
important.
Launching a new product in the market is difficult especially if the product
has a lot of competition and the product itself is something unexpected to the
consumers, so it is important for our company to have a powerful differentiated
to stand out from the competitors. As for many consumers, nothing makes their
buying decision easier than price, and the penetration pricing strategy is built
on this concept.
Several pricing strategies exist for various products and services and for
our newest product, Candy Squash; our company decided to choose the
penetration pricing strategy. Introducing our new product to the market with a
lower price will have a greater probability to attract the attention of the
consumers and to penetrate the market easily. Hence, competitors' customers
may switch over to the cheaper offer, and new customers will buy in too.
Moreover, this strategy prioritizes market share over profits for a given period
and at the same time aims to generate demand, rapidly build a customer base,
and maximize brand loyalty in a short time. After the period of growth, our
company can finally raise the price of our product to increase profits and reflect
the product's rising value.
13
A.Y. 2022-2023
CANDY CRUSH FINANCIAL ANALYSIS
Total Output: 300,000 packs
PRODUCTION COST COST PER TOTAL COST
UNIT
LABOR COST
Direct Labor 280,000 0.93 280,000
RAW MATERIALS
Kalabasa/Squash 170,000
Sugar 240,000
Tapioca Starch 130,000 3.98 1,195,000
Vegetable Oil 195,000
Whey Powder 180,000
Iodized Salt 50,000
Honey 80,000
Vanilin 100,000
Packaging Material 50,000
TOTAL 4.91 1,475,000
FACTORY EXPENSES
FIXED
Depreciation on Plant & Machinery 50,000
Rent 15,000
Insurance 20,000 0.39 117,000
VARIABLE Electricity 20,000
Water 12,000
TOTAL 5.3 1,592,000
14
A.Y. 2022-2023
OFFICE AND ADMINISTRATION
EXPENSES
Office Staff Salary 150,000
Computer 120,000 1.04 312,000
Internet & Telephone 2,000
Furniture 25,000
Depreciation on equipment’s 5,000
Taxes 10,000
TOTAL 6.34 1,904,000
SELLING & DISTRIBUTION EXPENSES
Advertisement
Fuel and Oil 6,000 0.07 21,000
Transport Cost 5,000
Repair & Maintenance 10,000
TOTAL 6.41 1,925,000
NET PROFIT (30% on Selling Price)
1.92 577,500
SALES 8.33 2,502,500
Economic
YEAR 1 YEAR 2` YEAR 3 YEAR 4 YEAR 5
Analysis
Quantity 300,000 350,000 400,000 450,000 500,000
Gross Income 2,499,000 2,915,500 3,332,000 3,748,500 4,165,000
Production 1,925,000 1,925,000 1,925,000 1,925,000 1,925,000
cost
Net Income 574,000 990,500 1,407,000 1,823,500 2,240,000
% ROI 29.82% 51.45% 73.09% 94.73% 116.36%
Selling Price 8.33 8.33 8.33 8.33 8.33
15
A.Y. 2022-2023
PAYBACK PERIOD = 1,925,000
577,500
= 3.34 years
We well have a selling price of 10 pesos per packs with 5 candies in
it.Assuming that the raw materials will increase its price in the market, the
annual price increase will be at 2% annually.
Promotion
Advertising and Promotion Strategies
Word of mouth and public perception are immensely important in both
aspects of the business. First of all, customers must understand that our
products are made with quality ingredients and thus taste better than many of
our competitors. The word of mouth will be created when someone experiences
for example, a free candy squash for all the teachers. The candy will be enjoyed
by many and thus the word of mouth seed for the Candy Squah aspect of the
portion will be created. Word of mouth for the classes will be spread by people
that had previously taken a class. According to Wilton's market study, 97% of
class participants say they'd recommend the classes to a friend which provides
a strong motivation to sign up. The former students will spread word of mouth
in two ways: expressing the enjoyment of the class and encouraging others to
take the class, and also developing a trust and relationship with Candy Squash
and therefore recommending the business to others.
Our means of promotion are by TV ads, fliers, tarpaulin and sponsoring local
events for consumers to be given free taste of our product and also to gain feed
backs from them. Allotted budget for the promotion and for each expenditures
is stated on the calculations.
16
A.Y. 2022-2023
Flier
17
A.Y. 2022-2023
Instagram Account Facebook Page
18
A.Y. 2022-2023
In promoting our Product to the market we will be using our social media
accounts to promote because nowadays many people are always in social
media.Also it will be a good platform to us to use this because it will be an easy
way to reach consumers in the market.
19
A.Y. 2022-2023
EVALUATION PLAN
N=10 testers of the CANDY SQUASH
Good Average Could
Check only those that apply improve
Appearance 8 2 none
Evenly crushed or small pieces of fruit
Color and clearness, natural color of 7 3 none
fruit or dominant fruit used and even
color throughout
Texture and Consistency 8 2 none
Fruit tender, no excessive seeds
or tough skins
Soft enough to spread but not runny 7 3 none
Flavor 7 3 none
Characteristic of fresh fruit or
dominant fruit used
Container and seal 6 1 3
Appropriate head space
Clean 6 1 3
Label--Neat and complete 7 1 2
Seal--processed in boiling water 7 2 1
canner
Based on the result from the table above, for the appearance, out of 10 tasters, 8 of them says
that it is good and it is evenly crushed into small pieces of fruit. In the color and clearness 7 of then
says that it is good and the other 3 says that it is average only. For the texture and consistency, 8 of
them says that it is good in terms of the fruit tender and it has no excessive seeds or tough skins.7 out
of 10 also says that it is good because it is soft enough to spread but not runny.
On the other hand, in terms of the flavor of the squash jam out of 10 testers, 7 of them says
that it is good in characteristic of fresh fruit or dominant fruit used and 3 of them says that it is only
average.
Lastly, in the terms of container and seal 6 of the testers says that it is only good in
appropriateness of the head space 1 of them says that it is average and 3 of them says that it could
improve to a better one. While on the cleanness 6 of them says that it is good, in terms of the labelling
the testers say that it is good because of the logo in it out of 10 says that it is good. In sealing the
product, it is very important, 7 of the testers says that the sealing is good the other 2 says that it is
average while the other one says that it could improve,
20
A.Y. 2022-2023
REFERENCES
Bruin L. 2016. Scanning the Environment: Pestel Analysis. Retrieved January
3, 2021 fromhttps://www.business-to-you.com/scanning-the-environment-
pestel-analys
Bruin L. 2016. Porter’s Five Forces. Retrieved January 3, 2021 from
https://www.business-to-you.com/porters-five-forces/
Bonduelle L. 2016. Squash: Health Benefits. Retrieved Janaury 4, 2021 from
https://www.fondation-louisbonduelle.org/en/vegetable/squash/#:~:text=S
quash%20contains%20a%20good%20amount,retina%2C%20a%20sensit
ive%20eyesight%20organ.
Buttler N. 2018. 7 Yellow Vegetables with Health Benefits.
Retrieved January 4, 2021 from
https://www.healthline.com/health/food-nutrition/yellow-vegetables
Campbell, P. (2020). Importance Of Pricing: Why Pricing Is Important For
SAAS And Beyond. Retrieve from
https://www.priceintelligently.com/blog/bid/157964/two-reasons-why-pri
cing-is-the-most-important-aspect-of-your-business
Cost sheet of a chocolate company and its analysis. (2009). Retrieve from
https://www.slide
share.net/amardeepbardhan/cost-sheet-of-a-chocolate-company-and-it
s-analysis
Haribolutti.(2014, Dec 7). Segmentation of the candy market. Haribo vs Lutti.
https://haribolutti.wordpress.com/2014/12/07/segmentation-of-the-candy-
market/
ODS. Nd. Vitamin A. Retrieved January 2, 2021 from ods.od.nih.gov:
https://ods.od.nih.gov/factsheets/VitaminA-Consumer/
21
A.Y. 2022-2023
Raman, R. 2018. 9 Impressive Health Benefits of Pumpkin. Retrieved
January 3, 2021 from healthline.com:
https://www.healthline.com/nutrition/pumpkin
Staughton, J. 2020. Squash: Top 5 Benefits & How To Use. Retrieved
January 2, 2021 from organicfacts.net:
https://www.organicfacts.net/health-benefits/fruit/squash.html
Specific Pricing Strategies. (n.d). Retrieve from
https://courses.lumenlearning.com/boundless-marketing/chapter/specifi
c-pricing-strategies/
Torres, G. S.(2017, July 28). Selecting the right distribution channel when
exporting food products. LinkedIn.
https://www.linkedin.com/pulse/selecting-right-distribution-channel-when-e
xporting-sanchez-torres.
22
A.Y. 2022-2023
23
