A feasibility study of putting up a home appliances store in atimonan,quezon

QUEZONIAN EDUCATIONAL COLLEGE, INC.
BUSINESS ADMINISTRATION DEPARTMENT
A FEASIBILITY STUDY OF PUTTING UP A
HOME APPLIANCES STORE
IN ATIMONAN, QUEZON
Presented to the Faculty of the College Department
Quezonian Educational College, Inc.
Atimonan, Quezon
In Partial Fulfillment of the Requirements for the Degree
Bachelor of Science in Business Administration
Major in HRDM
MIA BELLA V. NANON
March 2013

1
Chapter I
THE PROBLEM AND ITS SETTING
A. INTRODUCTION
People want things to be quick and easy. The best answer for that is to have
home appliances do it for you. With these, everything could be done in the least amount
of time, and we will be able to be relaxed, be at eased and be entertained.
Nowadays, many people have their own criteria in choosing an appliance store
where they will purchase their needed appliances, not only because of its branded name
but also because of its flexibility, durability, quality, and most of all, its affordable price.
There are also people who are borrowing money from any microfinance establishments.
They do provide appliances which may serve as collateral when they failed to pay for
their debt.
The proposed business would carry the major and small appliances a home
would need and become a one – stop – shop for the customers. It will be named as
“Wise Choice Home Appliances Store” and will be located at Zone IV Poblacion
Atimonan, Quezon where most business establishments are cited.
According to 2010 RHU (Rural Health Unit) Survey, the total number of
households from the four Zones of Poblacion in Atimonan is 2,772.There were 831
number of households in Zone I Poblacion; 818 number of households in Zone II
Poblacion; 426 number of households in Zone III Poblacion; and 697 number of
households in Zone IV Poblacion. The town of Atimonan is a good spot for this kind of
business, for many of its people used to acquire and purchase appliances that would be
helpful for them.
That is why the researcher wants to pursue the study so that the people of
Atimonan would no longer have to travel far when buying appliances suited for their

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home. It would be a great helped to those people who go to far places just to buy a
quality and affordable appliances.
Thus, the researcher finds out that a business establishment like a home
appliances store is a very interesting and challenging business to go into.
B. BUSINESS SWOT ANALYSIS (STRENGTHS, WEAKNESSES,
OPPORTUNITIES, THREATS)
 STRENGTHS:
 It brings the merchandise nearer to people of Atimonan, and also to the
people living in the nearby island like Alabat and Perez.
 The proposed business offers free installation of appliances in the
customer’s home.
 The propose business will also offer free delivery of the appliances
bought and will grant an extended warranty for the parts and labor
service.
 This type of business needed less manpower.
 WEAKNESSES:
 Big capital requirement is needed.
 The entrepreneur should keep for a long time the inventory of appliances.
 Large shelves are needed for the storage of items.
 OPPORTUNITIES:
 It will be the second store in Atimonan which primarily sells home
appliances.
 People from the nearby island like Alabat may buy appliances in the town
of Atimonan than going to the city.
 There are less existing competitors within the town.

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 THREATS:
 Appliances can be damaged by any fortuitous events.
 A Long-time recovery of interest for items sold in an installment basis may
also be a threat for the proposed business venture.
 The proposed business may incur losses from aging of stocks for less
sold products.
 The anticipation of unfavorable government policies, taxes and
requirements can have a big impact in the expenses and revenue of the
Appliance Business.
C. STATEMENT OF THE PROBLEM
The study attempts to discuss the Feasibility Study of Putting up a Home
Appliances Store in Zone IV Poblacion Atimonan, Quezon. Specifically it sought to
answer the following sub-problems:
 Determine the market profile and design the appropriate marketing plan.
 Determine the technical and operational requirements needed in putting up
the propose business.
 Determine the appropriate business structure and the required manpower
resources needed for the proposed business.
 Determine the capital requirement and the profitability of the business.
 Determine the social or community contribution of the proposed business.
D. SIGNIFICANCE OF THE STUDY
The study will be helpful to the following individual:
 To the Businessmen and Entrepreneurs who wants to established this kind
of business, this study will serve as basis of information for the proposed
business, and will help them determine the chance of this business to
succeed.

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 To the customers, to guide them in choosing the appropriate and suitable
appliances for their home.
 To the BSBA Students who will be benefited by this study, because it will
provide them the basic information about the appliances’ business.
 To the researcher, it gives a chance to test the knowledge and skills she
gained from the management and related business subjects. This will also
support her intention of putting up this kind of business in the future.
E. SCOPE AND DELIMITATION OF THE STUDY
 The study will focus on home appliances which are classified into major
appliances and small appliances.
 The respondents are limited to 100 numbers of households from Zone I,
Zone II, Zone III and Zone IV Poblacion Atimonan, Quezon. It is
distributed as follows:
 Zone I - 30 households
 Zone II - 30 households
 Zone III - 15 households
 Zone IV - 25 households
(Please see Table 1 on Chapter III for the basis of distribution.)

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F. CONCEPTUAL FRAMEWORK
The conceptual framework of this study will help the researcher in a relation of
her business venture.
Figure 1. The Research Paradigm illustrates the relation between the input and
output as well as the process.
INPUT PROCESS OUTPUT
Assessment of
- Market profile
(Age, Sex, Needs, Wants)
FEASIBILITY
STUDY
OF
PUTTING UP
A
HOME
APPLIANCES
STORE
IN
ZONE IV
POBLACION
ATIMONAN,
QUEZON
Assessment of
- Equipment and
process needed
(Materials and Location)
Assessment of
- Appropriate business
structure and
manpower resources
(Manpower resources needed)
Assessment of
- Capital requirements
and profitability
analysis
Assessment of
- Social or community
contribution of the
proposed business
Market Feasibility
Technical and
Operational
Feasibility
Organizational and
Manpower Resources
Financial Feasibility
Social and
Community
Contribution

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G. DEFINITION OF TERMS
 Appliances – a piece of equipment usually operated electrically,
especially for use in the home or for performance of domestic chores, as a
refrigerator, washing machine, or toaster etc.
 Appliances Store – the propose business which the study is all about
 Brand Name – type of product made by the company under a
particular name
 Collateral – anything or property that has value which serves as
substitute when the money borrowers failed to pay his / her debt.
 Installment – several payments made over a period of time.
 Major Appliances – are typically fixtures that cannot be easily moved
 Microfinance – a money lending institution
 Rural Health Unit (RHU) – the source of the number of households in Zone I,
Zone II, Zone III and Zone IV Poblacion of Atimonan, Quezon
 Small Appliances – refers to a class of home appliances that are
portable or semi – portable which are used on tabletops, countertops, or other
platform.

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Chapter II
REVIEW OF RELATED LITERATURE AND STUDIES
A. RELATED LITERATURE
A.1 Background and Development
The first household appliance store was established in 1827 in Salem Village,
Massachusetts, by Amasa Goodyear, according to J. Leander Bishop in the History of
American Manufacturers. She sold house wares such as coffee and tea pots, waffle
irons, brass andirons, and cast-iron gridirons in addition to a range of hardware goods.
Early household appliance stores usually sold a combination of house wares and
hardware products, according to Earl Lifshey's The Housewares Story. They took shape
as independent units and as departments within large stores. Of the latter, Lifshey
writes: "It was the emergence of the department stores in the latter half of the past
century that spawned the house wares department as we have come to know it. The
conditions and economies of those days encouraged the expansion of house wares
departments. Some of the great department stores had house ware departments of
enormous size, owing less to the extensive assortment of items than to the practice of
maintaining large stocks of goods on the selling floor. Such refinements as cost
accounting and the pressure for getting maximum sales per square foot did not come
until much later."1
The turning point in the industry took place around the time of the Civil War.
During the early and mid-1860s a number of key developments occurred, which included
the electrification of people's homes; a rise in the standard of living; improvements in
transportation systems, particularly the railways; increased capital; the development of
plate glass, which made store windows possible; and the rise of retail advertising. The
1
Source: http://business.highbeam.com/industry-reports/retail/household-appliance-stores

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advent of electricity, in particular, revolutionized the household appliance store industry,
making possible the invention of the range of items that have become synonymous with
the business, such as refrigerators, electric cookers, and vacuum cleaners. Electricity
had been around for a long time, however, before there was a significant demand for
household appliances. George H. Jungen, a former Vice President of the Baitinger
Electric Co. in New York City, described the situation in an interview with Earl Lifshey in
the December 20, 1937, issue of Retailing Home Furnishings, saying, "Electricity was
first used in factories and office buildings long before being introduced into the home.
Electrical appliances--such as they were at the time--couldn't be readily purchased by
interested consumers from dealers simply because there were few or no such dealers
around. There were only five firms (in New York City) then handling electrical goods:
Stanley & Patterson; Latham; Manhattan Electric; Western Electric; and J. H. Burnell.
Most of their business was done on electrical equipment. When people wanted to get an
electrical appliance, it was only natural, therefore, that they should think of getting it from
the people who furnished them with other electrical supplies." Consequently, many of the
larger household appliance stores, such as Lewis & Conger and Hammacher
Schlemmer, issued catalogs and mail-order services to encourage sales.
As late as 1914, department stores as prominent as Marshall Fields in Chicago
were debuting their "household utilities" departments, selling kitchen utensils, laundry
requisites, refrigerators, sewing machines, vacuum cleaners, and electrical sundries.
The real invasion of household appliances was yet to come. It was only in the 1940s and
1950s that many of the appliances Americans in the early 2000s take for granted
became a part of the average American household. Since then, new products have
appeared with increasing predictability. In the early 1980s consumer demand for
electronics led to large sales and profit growth; many companies flourished. By the mid-
1980s, however, the environment became more competitive, the market for VCRs
became saturated, and the recession of the late 1980s slowed overall sales.
In 1993 the overall market for home appliances improved but remained difficult,
and competition was expected to remain stiff. P. J. Muldoon stated: "From the better
tone of housing markets in 1992, it appears that the trough in this segment has been

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reached and that demand for consumer durables will rise. The overall industry
environment--namely, generally sluggish demand and the declining trend in pricing--
continues to call for a strategic orientation toward grabbing more market share. Surviving
operators have to properly prepare financially and strategically. Those that survive will
be presented with considerable growth opportunities. This potential will be enhanced
further in the more distant future when the next blockbuster is introduced."
The industry as a whole experienced sales growth in the first quarter of 1993. In
a 1993 survey by the Salomon Brothers of 75 percent of all household appliance stores,
67 percent of stores reported unit sales growth. These figures were significantly higher
than those for the third quarter of 1992, when 17 percent of stores reported flat sales
and another 17 percent experienced a decline in sales. Moreover, many retailers
experienced an upsurge in sales in April and Mid-May of 1993. Leading brands from
General Electric, Whirlpool, Maytag, Roper, Hotpoint, Kelvinator, Amana, Tappan,
Speed Queen, Frigidaire, Kitchen Aid, Sharp, and Jenn-Aire helped increase retail sales.
According to Russell L. Leavitt, "buyers cited manufacturer promotional activity and the
financial position of consumers along with low interest rates as primary factors
contributing to the stronger appliance sales."
Although personal computers had been expected to be one of fastest-selling
products at household appliance stores through the mid-1990s, toward the end of the
decade high-definition TV, consumer electronics, and digital products in all categories
gained considerable market share.
Price wars, acquisitions, expansion, and slick marketing strategies were the
name of the game in the mid-1990s. Household appliance superstores were carrying
practically every type of electronic equipment a home would need and became a one-
stop shop for consumers. The use of better displays, in-store catalogs, and extended
service plans helped to lure customers and boost sales at household appliance stores.
According to HFN, a Salomon Brothers survey found that major appliance
retailers expected sales to be flat and inventories to be higher between May 1, 1995 and
April 30, 1996. These forecasts were based upon sales for January through April 1995.

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However, the household appliance stores were ahead of the market figures with their
new marketing strategies. Prices increased by approximately 2 percent. Sales softened
and promotional activities expanded. Almost 55 percent of retailers reported an increase
in appliance sales.
In the mid-1990s major electronics and appliances retailers were showing
definite trends of expansion. Montgomery Ward's acquisition of the New England-based
Lechmere, and Circuit City's purchase of eighteen former Silo store leases in the Los
Angeles area, validated this trend. Circuit City's plans included growth by opening 180
stores between January 1994 and January 1997. Minneapolis-based Best Buy Inc. had
expanded in the southeastern and western United States. Best Buy introduced seven
Concept III stores, the largest stores in this chain, in Los Angeles in the mid-1990s. Best
Buy also opened several stores in the Washington, D.C., and Cleveland areas for the
first time.
Along with expansion were new marketing strategies and promotions to increase
sales. Besides opening new stores in geographically diverse areas, many companies
boosted profits through employee training. The willingness of appliance superstores to
reinvent themselves through product diversification was established with Best Buy's
introduction of gourmet kitchen appliances at its outlets in May 1996. This move also
reflected the tough household electronics and appliances market of the mid-1990s.
Demographics also were important to the success of the industry. Appliance
stores in general target 35- to 64-year-olds. With a 35 percent growth rate, this
population segment grew faster than any other in the late 1990s.
In 1998 the U.S. appliance market was seeing a decline in prices. Due to
increased imports from China, Japan, South Korea, and Mexico, increased pressure was
placed on pricing. This factor resulted in lower prices for the consumer as American
manufacturers were forced to provide high-quality, innovative products at lower costs to
compete with foreign imports.
While many stores such as Best Buy and Circuit City saw gains in 1998, some
smaller, regional stores succumbed to the pressure of the rising superstores. Sun

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Television and Appliance Inc., Fretter Inc., and Highland Superstores went bankrupt in
the mid-1990s. Rex Stores Corp. saw sales decline in 1998, as did Tops Appliance City
Inc. In 1999, though, Rex Stores did see some growth in sales.
In 1998 the industry had sales of $68.5 billion as consumer demand for
appliances remained steady due to the stable economy, consumer confidence, and the
increase of new housing developments. The majority of appliance stores were fairly
small operations with only a few workers in the early 1990. However, a continuing trend
toward consolidation of the market in the late 1990s led to the leadership of superstores
and warehouses in this industry. Although these megastores comprised a minority of the
industry's stores, the low prices that they could offer due to their economies of scale
made competition against them extremely difficult for smaller stores. Due to the success
of these retailers, appliance stores tended to diversify their product range. By the late
1990s most household appliance stores offered a wide range of products--including
consumer electronics and office supplies.
Following the terrorist attacks of September 2001, consumer confidence plunged.
A survey of five thousand U.S. households in October 2001 indicated that 26.8 percent
expected to buy a major appliance within the next six months, compared to an average
29.6 percent who planned a major appliance purchase between March and September
of 2001. However, by October 2002 the monthly survey indicated a rise in consumer
confidence, with 27.9 percent of those polled expecting to buy a major appliance in the
following six months.
A.2 Trends in the Industry of Appliances Store
 Appliances Industry in the Philippines
There are a number of appliance stores in the Philippines that carry nearly all
product lines. They offer prices at almost the same rates like their competitors.
Nevertheless, not all of these companies share the same excellence when it comes to
products and services. Quality products, excellent service and amazing promotions are
some of the aspects that set them aside from the rest. Below are the Top 3 one-stop
shop appliance stores operating all over the Philippines today. We considered the

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following criteria for ranking the companies: Network size, Products, Service, Online
transaction capability, and Industry tenure.2
1. EMCOR Inc. is considered to be the most extensive retail appliance,
computer, and furniture and motorcycle store in the Philippines. They have been serving
the Filipino people for 52 years. This company has a total of 106 stores operating all
over Visayas, Mindanao and Palawan areas with a sister company in Luzon, the
KServico that has a total of 100 stores in Metro Manila and Luzon area. It has developed
the online transaction feature recently and is beginning to receive orders for overseas
customers. They have the customer service officers or CSO’s to attend to the customers
even after the sale. EMCOR carries all major brands for all product lines. One reason
that separates this company among the others is their Installment Plan. EMCOR offers
installment plan of up to 30 months for motorcycles and 18 months for appliances,
furniture and computers. In addition, they recently added Western Union to their service
in order to cater the remittances of our sisters and brothers working abroad.
2. Abenson, Inc., one of the companies of Benison Group of Companies, has
engaged in retailing of appliances and consumer products in the Philippines for 35 years
now. They have 64 branches in Luzon, Cebu and Tagbilaran only. They operate inside
department stores for the convenience of the people.
Most customers prefer one-stop shopping nowadays and there’s no better place
for it but the malls. Their online shop, to most, is considered to be among the best
Philippine website marketing tools. It caters to both local and overseas consumers.
Abenson stores carry appliance and computer brands for all product lines.
3. SM Appliance is the retail appliance store of SM Group of companies. They
have been in the industry for 18 years since their incorporation in SM malls in 1991.
Although SM Appliance stores are located only inside SM Department Stores and other
prominent malls, it has 45 branches operating all over Luzon (37), Visayas (6) and
Mindanao (2). They also have their online store which will enable customers to shop for
2
Source: http://hubpages.com/hub/top-appliances-stores by jsantos8000

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appliances in the Philippine, both local and abroad. SM Appliance stores carry all kinds
of products from small to major items.
These companies continue to grow in spite of the economic challenges our
industry are experiencing right now. They continue to serve the global market with
quality products and excellent services. These facts are the reasons why the
aforementioned companies are among the top appliance stores in the Philippines.
 Appliances Industry in China
M& A boom lift home appliance chain. Commitments under the WTO protocol, by
the end of 2004, after the full linearization of the China’s retail market allowing wholly-
owned enterprises to enter China and are not commodities quotas.3
However, entering
China in 2003 the world's largest home appliance chain, the world's 500 Best Buy but
nothing residence. End in May this year acquired a high premium Jiangsu Five Star
Appliance. Chinese home appliance chain of value and competitiveness is evident.
Home appliance chain is the highest degree of market concentration, one of the most
competitive industries. A local home appliance retailer as an earlier start has
accumulated abundant capital and rich management experience, from the initial
resistance has been opened into the now calm face. Present Gome, Suning, Dazhong
and other domestic companies have monopolized the market. States United States after
the acquisition of Paradise, to further consolidate its giant status. Suning has a frank
expression of high-rise headquarters for the local appliance retail businesses, not foreign
pressure.
 Appliances Industry in Australia
Changing the channel: The switch to digital TV is propelling the industry forwards
IBIS World’s Domestic Appliance Retailing market research report provides the latest
industry statistics and industry trends, allowing you to identify the products and
customers driving revenue growth and profitability. The industry report identifies the
3
Source:http://business.ezinemark.com/six-household-appliances-industry-inventory-local-and-foreign-
investors-leading-the-trend-hisense-31c9b9287ef.html

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leading companies and offers strategic industry analysis of the key factors influencing
the market.
From the laundry to the lounge room, the domestic appliance market underwent
a technological revolution over the past five years. With sales rising 2.9% per annum
over five years through 2010-11 to reach $20.2 billion, demand was primarily driven by
an influx of new products along with advances in product design, functionality and
technology. Sales growth over this period was also spurred by trends in real household
disposable income, consumer sentiment, interest rates, competition from department
stores, activity in the house construction market and household formation rates.4
A number of factors, including market competitors, growth in population and
establishment of new residential estates, influence the location of establishments in the
industry. IBIS World estimates that in 2010-11, the majority of domestic appliance
retailers are located in New South Wales (35.5%) followed by Victoria (23.5%) and
Queensland (20%). The dominance of industry establishments in these three states is
primarily linked to their share of the national population. In essence, stores benefit from
being located within cities and regional townships to maximize their consumer exposure
and ability to influence impulse buyers. It is common for industry retailers to be located
near other players to monitor competition levels.
 Appliances Industry in America
Sales of appliances hit a new record in 2003 after several years of disappointing
sales, and most major categories increased again in unit sales in 2004, especially in the
discount and upscale product categories. According to the Association of Home
Appliance Manufacturers (AHAM), an estimated 74.9 million major home appliances
were shipped in the United States in 2007 (down from 79.96 million in 2006). Sales of
major home appliances totaled $23.67 billion in 2006. The top sellers were refrigerators
4
Source:http://www.ibisworld.com.au/industry/default.aspx?indid=1838

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($6.89 billion), clothes washers ($3.63 billion), electric ranges and cook tops ($2.89
billion), clothes dryers ($2.53 billion), and dishwashers ($2.11 billion).5
Household appliance superstores continued to deploy newer and slicker
marketing strategies to keep up with the increasing competition. Household appliance
stores sold everything from washers and dryers to digital satellite systems, radios, home
theater systems, personal computers, cellular phones, DVD players, electronic
accessories, and audiocassettes, compact discs, and videocassettes.
B. RELATED STUDIES
B.1. Research and Technology
Like all sectors of the retail industry, household appliance stores have been
strongly impacted by new technologies, particularly computerization, digital technology,
the Internet, and advanced electronics. Computerization revolutionized the control of
inventory flow and the ordering of stock and allowed more stores to move to a just-in-
time system of delivery. Management information systems have made information
collection and analysis faster and more accurate. Research has focused on new
management techniques to keep up with the fluctuating market.
Pricing continued to be studied especially closely in the late 1990s, and an
increasing number of industry retailers switched from promotional sales to everyday low
pricing (EDLP). Standard and Poor's Industry Surveys stated, "For retailers, the benefits
of an EDLP strategy versus a high/low strategy can be significant. Most important are
reduced costs: advertising outlays for sales are eliminated, a more even flow of
merchandise improves inventory management, and labor costs are reduced since prices
no longer need to be marked down.
Moreover, the equation works both ways: lower costs can be translated into
lower price." Most of the bigger chains have undertaken detailed studies of their
5
Source:http://business.highbeam.com/industry-reports/retail/household-appliance-stores

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business and have sought ways to reduce costs, increase efficiency and productivity,
control inventory, and rationalize operations.
The National Retail Federation estimated that more than 40 million households
shopped online by 2003. While commodities such as books, CDs, and apparel were
much easier to sell online, the appliance industry has not backed down from offering
products online.
Increased technology in the appliances themselves is also expected to have an
impact on this industry. Electronics are changing how many basic appliances work. In
an HFN article, Ron Kerber--Whirlpool Corp.'s executive vice president and chief
technology officer--stated that electronics are "going to be a huge impact on this
business. They will control functionality; they will add functionality." Sales are expected
to rise with the introduction of such innovations as advanced cooking controls that could
time the start and stop of cooking, either in an oven or microwave; advances in
refrigeration, dishwashers, and clothes washers; and new products for home dry
cleaning.
Energy-saving mechanisms in home appliances, which are supported in the
Energy Independence and Security Act of 2007, bode well for the industry, according to
AHAM President Joseph M. McGuire, who stated in December 2007: "The law
demonstrates once again that home appliances are in the forefront of energy efficiency
and provide real solutions for consumers wishing to do their part to save energy and
protect the environment. Legislation still pending in Congress, when enacted, will
supplement these appliance standards with tax credits to manufacturers to produce
'super efficient' products making upgrading home appliances the most cost effective step
a consumer can take to save energy."6
6
Source:http://business.highbeam.com/industry-reports/retail/household-appliance-stores

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B.2 How to Start an Appliance Delivery and Set-up Business
Some appliances, like the television and fridge, are too big to be brought home
from the store. After buying these appliances, most people pay extra to have them
delivered and set up at their homes. You can actually make a business out of this. Here
are a few simple steps to begin an appliance delivery and setup business.7
First, study appliances. In this business, the entrepreneur will surround himself
with appliances. Learning how to use and properly handle them is essential. Customers
cannot trust people who know nothing about what they're delivering to deliver their
purchases. Also, the entrepreneur will need to learn how to set up different appliances.
Next step is to rent or purchase a delivery truck. If the store does not have its
own truck, it is now time to get one. Although the entrepreneur may prefer to rent trucks,
this is only advisable when he is just starting the business. He should be providing
the delivery service, not availing of one.
Buy tools. When the delivery personnel enter someone's home, he can't expect
them to have the necessary tools to set up their appliances. He has to bring tools with
him. Some common tools to bring would be cutters, wrenches, hammers and drills.
Hire manpower. The entrepreneur cannot do this alone. For starters, hire two to
three people, at least two people for delivery and one or two left in the office to take
phone calls. Preferably, hire strong, physically fit men. Most of the appliances are big
and bulky. A hand truck is a must for every delivery.
Take care of legal matters. Acquire a business license. Get insurance. Study
and follow all applicable policies and regulations in the area.
Start delivering. The easiest way to start would be to partner up
with appliance stores or retailers. They sell appliances. The entrepreneur brings them to
the customers.
7
Source: http://www.howtodothings.com/business/how-to-start-an-appliance-deliver5555y-and-setup-
business by Wendy Coleman

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Most online stores depend on courier services like UPS to deliver their products.
If the entrepreneur offers services at better rates while still ensuring quality delivery, they
may consider hiring him instead. Partnering up would help give the entrepreneur a
steady flow of income and ensure that the business does not go under.
Advertise. After acquiring stable partnerships with different appliance retailers,
the next step to consider is to cater to individual people's needs. Post advertisements on
the newspapers and on the internet about the delivery and setup service. Include the
partnerships the business has to prove that it is a legitimate service. The target
market would be people who need help setting up their appliances and people who want
to deliver appliances from one place to another.
Once business starts to bloom, the entrepreneur may need to consider hiring
more manpower and expanding the business. If does not, then he may need to revise
his marketing strategy or improve the quality of service. Remember, the business is all
about service. Focus on this. Fast, efficient service is what he should aim for. It is easier
to get people to hire when there is already proven that the appliances store is a trusted
and reliable company.
B.3 Assessment of the Environmental Impact of Household Appliances8
According to the Assessment made by Reinhard Otto, Arno Ruminy and Herbert
Mrotzek, BSH Bosch und Siemens Hausgeräte GmbH, they concluded that the use
phase dominates the overall life-cycle impact of large appliances with a proportion of
more than 90 percent. Compared to 1990, contemporary appliances consume between
30 percent (washing) and 70 percent (refrigeration) less electric energy. The reduction in
the consumption figures has a direct influence on the life-cycle impact. The potential for
further reduction through design options seems limited given current technology. Due to
the importance of the use phase, further efforts for improvements should be
investigated.
8
Source:http://www.appliancemagazine.com/ae/editorial.php?article=1393&zone=215&first=1

19
The education of consumers, the promotion of existing environmentally friendly
features and replacement of old, non-energy-efficient appliances provide plenty of
potential for reducing the overall environmental impact. State-of-the-art appliances use
sensor technology for process control and user guidance to achieve optimized
consumption of energy and resources.
Furthermore, the way electric energy is generated in different regions has a large
influence on the life cycle’s environmental impact of energy-using products. This has to
be kept in mind when using life-cycle assessment (LCA) as a method for determining the
environmental impact of energy-using products.
C. REVIEW OF RELATED BUSINESS AND ENTREPRENEUR
The entrepreneur that the researcher considered related to the proposed
business is MR. WILSON C. LIM, the Founder and President of Abenson, Inc. and
Waltermart Supermarket, Inc.
C.1 PROFILE OF THE BUSINESS
Abenson is the flagship company of a conglomerate of dynamic business
enterprises engaged in the retail, wholesale, direct selling, field selling and distribution of
home appliances, consumer electronics, houseware, furniture, IT products and its
accessories. Their retail brands include Abenson, Avant, Waltermart, Electroworld,
Home Plus and Abea.
Their company is located in #11 Benito Building Sheridan Street, Mandaluyong
City, Metro Manila, Philippines. Abenson is the largest retailer of Home Appliances and
Consumer Electronics in the Philippines. It has 75 stores nationwide under the Abenson
brand and turn-over of more than USD 150M. Currently, they are the biggest retailer for
appliances and audio video in the Philippines for such brands as Sony, Samsung, LG,
Philips and Sharp.

20
C.2 PROFILE OF THE ENTREPRENEUR
WILSON C. LIM
Founder and President
Abenson Inc. and Waltermart Supermarket Inc.
 One of the finalist of the “Entrepreneur of the Year Philippines 2004”
 Agora Awardees in Entrepreneurship
 He came from the family of achievers: his father, Benito Lim was known for being
the “Appliance King”, while his brother Samie Lim was the Chairman of the
Philippine Retailers Association and a Vice Chairman of Federation of Asian
Retailer’s Association.
When Wilson Lim was young, he worked with a family–run business, the
Automatic Centre which was founded by his father Benito Lim, noted for being
“Appliance King”. He realized the complication faces by the business and that there is a
need to professionalize in order to make it successful. So he leaved for abroad to study
the practices of the same business. After months of observing and a year of working on
his father’s business, he decided to open the first Abenson store inside the newly
commercialized Green Hills Shopping Center in 1970 and pioneered the concept of a
“supermarket” for appliances. His goal was to provide the opportunity for Filipinos to
purchase affordable and excellent products with superior after-sales services.
Thirty-five years after breaking away from the family to begin his own appliance
business, Lim shows no sign of stopping. Instead, he is continuously innovating his
enterprise using a philosophy that has sustained him throughout his career. He says,
“Everything has a natural balance. If you work hard, the return will be equally
rewarding.”9
9
Source: http://angatpinoy.com/viewtopic.php?id=115 by jules_princess

21
C.3 ABENSON AT PRESENT
ABENSON, INC.10
belongs to the top 200 corporations in the Philippines.
Engaged in the retailing of appliances and consumer products for 35 years now,
ABENSON takes pride in its achievement being the pioneers in appliance super
marketing and its enviable position as the industry leader. Today, ABENSON is the
largest appliance store in the country with 75 branches nationwide; a consistent recipient
of Market Excellence Award.
ABENSON recognizes that people are the most valuable asset. Nurturing them
for their physical, intellectual, social, economic and spiritual well-being are major
concerns. In line with this, ABENSON provides everyone – from front liners to managers
- with continuous developmental training programs. Our people are regularly sent on
observation trips, both local and abroad, to keep us all in touch with the market and most
recent trends in the industry. We are sent to top management schools to further develop
our skills.
ABENSON, Inc. is just one of the six (6) business units of BENISON GROUP OF
COMPANIES divided into two (2) main groups, each having distinct product portfolios
namely: consumer business group and office business group. ELECTROWORLD is a
computer store with 30 chains nationwide. The most recognized name in the IT retail
industry. It is a total business center which features the leading brands of fax machines,
copiers, calculators, computer systems, software, printer, monitor displays, computer
peripherals and accessories. HOMEPLUS (and ABEA) is known for its exclusive designs
and imported home furniture. It has 31 branches nationwide. WALTERMART is a home
and office supermarket with 14 branches nationwide. It features a full range
supermarket, home center, furniture department, office center, food outlets, family
entertainment areas, specialty shops and department stores. ABENSON upholds
commitment, industriousness, integrity, loyalty and discipline. We believe in the
importance of teamwork and cooperation.
10
Source: http://siva-ph.jobstreet.com/_profile/previewProfile.asp?advertiser_id=17302

22
C.4 REVIEW OF BUSINESS OPERATIONS
Among their products are: audio systems, component systems, home theaters,
karaokes, DVD players, televisions, flat panels, projections, home appliances, washing
machine, refrigerators, air conditioners, microwave, ranges, blenders, fans, cooking
appliances, portable electronics, computers, digital cameras, memory cards, mp3
players, printers, projectors.
Their major business services include the following:11
FLEXIBILITY – Abenson provides different claim options such as Abenson Gift
Certificates or Redemption Certificates. With Abenson's wide network of stores, it also
accommodates pick-up and delivery of items to any point within the country.
DELIVERY – Abenson’s prefer a next–day home delivery.
WARRANTY – Abenson gives a warranty up to 5 years. Abenson Extended
Warranty offers 100% product protection where they cover parts and labor service so the
customers are protected against unexpected bills.
REPAIR OR REPLACEMENT –With Abenson Extended Warranty the product
will be replaced with a brand new unit of similar kind and quality when the original unit is
irreparable or beyond economical repairs.
Abenson Extended Warranty can be applied to an appliance bought for domestic
or personal use and it is applicable on a wide selection of appliances. For reference,
outlined below a list of eligible products: Television, Projection TV, Home Theater,
VCR/VCD/DVD, CamCorder, Mini Component, Portable Cassette, Portable Cassette W/
CD AND VCD, Fax Machine Refrigerator, Window Type Aircon, Split Type Aircon,
Washer, Dryer, Range/Oven, Microwave Oven, and Vacuum.
11
Source: http://en.wikipilipinas.org/index.php?title=Abenson

23
C.5 BUSINESS CHALLENGES
 Issues with product under warranty – Abenson referred the clients to brand’s
service center, letting them to handle the customer complaints.
 Unmanageable workers – Abenson continue to provide developmental
training for their employees.
C.5 PRODUCT/ SERVICE INNOVATIONS
The new offers/ services that Abenson introduced to market are as follows:12
 The price of appliances in Abenson is cheaper than the other appliance store.
 One (1) year free service and repair warranty and also a one (1) year
replacement warranty – which is their edge among their competitors.
 Good customer service –you really feel that you are welcome to check their
offers.
 Reward Point Card – With the Reward Card you will be given a chance to get
some items for free after you accumulate the minimum points required (similar to a cash-
back guarantee).
 Reliable appliance center– because you can buy products from them even
without cash at hand or credit card, you can easily apply for an appliance loan.
 Abenson has also introduced a concept store called “Avant” that carries the latest
high-end technology products available in the market.
In the next five years, Lim plans to go for an initial public offering and to open
Abenson stores abroad for overseas Filipinos. In progress is a five-story Walter Mart
community mall to cater to the Makati market.
12
Source: http://www.reviewstream.com/reviews/?p=53862 by clickmarbin

24
Chapter III
METHOD OF RESEARCH AND PROCEDURES
A. METHOD OF RESEARCH USED
The study used the descriptive method of research to determine the feasibility of
putting up a Home Appliances Store in Zone IV Poblacion Atimonan, Quezon. The
descriptive method of research is a fact finding method which describes, analyzes and
interprets the whole current condition of the study.
B. DEVELOPMENT OF RESEARCH INSTRUMENTS
The study used the following as research instruments:
B.1 Questionnaire – Its objective is to seek and determine the market profile;
what classification of appliances the market looks for; the attitude, perception and
responses of the market towards Home Appliances Store. (Please refer to the Appendix
A for the Survey Questionnaire.)
B.2 Interview –This aims to determine the business profile, marketing strategy,
the classification of appliances they sell, the operation and processes taken, and the
problems encountered pertaining to the Home Appliances Store. (Please refer to the
Appendix B.1 and B.2 for the Interview Request Letter and Interview Guide)
C. METHOD OF COLLECTING DATA
C.1 METHOD OF COLLECTING SECONDARY DATA
The researcher used the secondary data to get the necessary details and
information related to the thesis topic. The researcher also browsed from the internet
and read articles from books and magazines about the topic.

25
C.2 METHOD OF COLLECTING PRIMARY DATA
The researcher also utilized the primary data through the questionnaire and
interview from an individual person.
C.2.1 QUESTIONNAIRE – This will be use in surveying the respondents with the
guided questions pertaining to Home Appliances Store.
Sampling Design
The size of study population in this study is composed of 2,772 numbers of
households from Zone I, Zone II, Zone III and Zone IV Poblacion Atimonan, Quezon.13
Sample size:
Where:
n – Sample/ respondents
N – Size of study population
E – Margin of error (5%)
n = 2,772 / 1 + (2,772) (0.0025)
n = 2,772 / 8
n = 347
The researcher limited her study to 100 respondents considering the amount of
time allocated for the study and to lessen the cost incurred in the study.
Poblacion Household Number Percentage Respondents
Zone I 831 30% 30
Zone II 818 30% 30
Zone III 426 15% 15
Zone IV 697 25% 25
TOTAL 2,772 100% 100
Table 1. Percentage and Respondents Information by each of the Barangay
Number of Households over the Total Number of Households.
13
Source: Municipal Planning and Development Council (MPDC), 2010 RHU Survey
n = ___N___
1 + Ne2

26
The researcher get 30 respondents from Zone I Poblacion, 30 respondents from
Zone II Poblacion, 15 respondents from Zone III Poblacion, and 25 respondents from
Zone IV Poblacion. The researcher used the Stratified Random Sampling as the
sampling technique of the study and utilized the respondents of 100 households in every
Zone pertaining to respondent’s gender, as shown in the following tables:
A. Zone I Poblacion Atimonan, Quezon
GENDER TOTAL
Male 15
Female 15
Total 30
B. Zone II Poblacion Atimonan, Quezon
GENDER TOTAL
Male 15
Female 15
Total 30
C. Zone III Poblacion Atimonan, Quezon
GENDER TOTAL
Male 8
Female 7
Total 15
D. Zone IV Poblacion Atimonan, Quezon
GENDER TOTAL
Male 12
Female 13
Total 25
Table 2. Distribution of the Total Number of Households in Every Zone
Pertaining to Gender.

27
C.2.2 Interview – This is used in interviewing the owners/ managers of three
selected Appliances Store. This was conducted through personal interviews with the
owners / managers of three (3) selected Appliances Store, namely: (1) ROYAL STAR
APPLIANCES MARKETING, located at Juez Andres St. Zone IV Poblacion Atimonan,
Quezon. This is owned by Teresita Lazaro and managed by Vivian Vallesteros; (2) the
RIEN AND RAINY APPLIANCE AND FURNITURE located at Corner Principe St.
Maharlika Highway, Gumaca, Quezon. This is owned and managed by Glenn D.
Oliveros; and (3) the ALSON’S TRADING, located at J. P. Rizal St. Barangay Bagong
Buhay, Gumaca, Quezon. This is managed by the branch manager Ma. Luz A. Labo.
The researcher interviewed only three (3) owners/ managers of the same business
because their responses are enough to stand as her basis for the study.
E. STATISTICAL TREATMENT OF DATA
The data collected were categorized and tallied. The results of the survey were
tabulated to analyze and interpret easily.
The researcher used the Percentage distribution for demographics; what type of
appliances do they look for; what terms of payment the respondents preferred; where
the respondents buy their appliances, and the percentage of the respondents’
willingness to go in a Home Appliances Store in Atimonan, Quezon. The researcher
used the formula:
P = n/ N x 100%
Where:
P – Percentage Distribution
n – Number of Responses
N – Number of Respondents
The weighted mean was also used in measuring the attributes, perception and
attitudes of the respondents towards Home Appliances Store. This enables the
researcher to determine what the respondents want and prefer in an Appliances Store.
The formula that is used in getting the weighted mean is:

28
WM = 5f + 4f+ 3f + 2f + 1f
N
Where:
WM – Weighted Mean
f – Frequency responses
N – Total number of responses
The scale below is used to interpret the total weighted mean for perceptions.
RANGE RESPONSES
4.2 – 5.0 Strongly Disagree
3.4 – 4.1 Agree
2.6 – 3.3 Undecided
1.8 – 2.5 Disagree
1.0 – 1.7 Strongly Disagree
The scale below is used to interpret the total weighted mean for attributes.
RANGE RESPONSES
4.2 – 5.0 Strongly Preferred
3.4 – 4.1 Most Preferred
2.6 – 3.3 Preferred
1.8 – 2.5 Least Preferred
1.0 – 1.7 Not Preferred at All
The researcher also used the Ranking Method to know and determine the top
attributes, attitudes, perceptions, and the classification of the appliances that the market
looks for.

29
Chapter IV
ANALYSIS, PRESENTATION AND INTERPRETATION
OF DATA
This chapter presents the analysis and interpretation of all the data and
information gathered by the researcher for the Feasibility Study of Putting up a Home
Appliances Store in Zone IV Poblacion Atimonan, Quezon.
A. RESULTS OF SURVEY
A.1 Demographic Profile of the Respondents
Table 3.1
Respondents Response According to their Age Group
AGE
ZONE
I
ZONE
II
ZONE
III
ZONE
IV
TOTAL %
20 years old and Below 6 5 1 3 15 15%
21 - 30 years old 8 8 3 5 24 24%
31 - 40 years old 3 10 3 7 23 23%
41 - 50 years old 8 5 5 4 22 22%
Above 50 years old 5 2 3 6 16 16%
TOTAL 30 30 15 25 100 100%
Figure 3.1 Pie Graph of Age Group Distribution

30
Figure 3.1 shows that 24% of the respondents are 21–30 years old, 23% are 31–
40 years old and about 22% of the respondents are 41–50 years old. There are 16% of
the respondents who are above 50 years old, and the remaining 15% are 20 years of
age and below. Therefore the potential markets for Appliance business are people of
ages 21 – 50 years old.
Table 3.2
Respondents Response According to their Gender
SEX
ZONE
I
ZONE
II
ZONE
III
ZONE
IV
TOTAL %
MALE 15 15 8 12 50 50%
FEMALE 15 15 7 13 50 50%
TOTAL 30 30 15 25 100 100%
Figure 3.2 Pie Graph of Gender Distribution
Figure 3.2 shows that the respondents from four (4) Zones had an equal
distribution pertaining to their gender.
Table 3.3
Respondents Response According to their Civil Status
CIVIL STATUS
ZONE
I
ZONE
II
ZONE
III
ZONE
IV
TOTAL %
Single 12 8 5 6 31 31%
Married 17 20 8 17 62 62%
Widower/ Widow 1 2 2 2 7 7%
TOTAL 30 30 15 25 100 100%

31
Figure 3.3 Pie Graph of Civil Status Distribution
Figure 3.3 shows that 62% of the respondents are married, 31% are single and
there are 7% of widower/ widow.
Table 3.4
Respondents Response According to their Family Monthly Income
INCOME (in Php)
ZONE
I
ZONE
II
ZONE
III
ZONE
IV
TOTAL %
Less than 4,000 10 6 1 7 24 24%
4,100 - 8,000 8 7 3 11 29 29%
8,100 - 12,000 3 8 5 1 17 17%
12,100 - 16,000 4 5 5 2 16 16%
16,100 - 20,000 0 3 0 1 4 4%
More than 20,000 5 1 1 3 10 10%
TOTAL 30 30 15 25 100 100%
Figure 3.4 Pie Graph of Income Bracket Distribution

32
Figure 3.4 shows that 53% of the respondents have a total family monthly
income of less than Php.8,000.00, 33% of them have a family monthly income of
Php.8,100.00 – Php.16,000.00. About 10% of them have a family monthly income of
more than Php.20,000.00 and the remaining 4% are those which have a family monthly
income of Php.16,000.00 – Php.20,000.00.
Table 3.5
Respondents Response According to their Occupation
OCCUPATION
ZONE
I
ZONE
II
ZONE
III
ZONE
IV
TOTAL %
Office Worker 6 4 0 1 11 11%
Teacher 3 1 1 0 5 5%
Fishermen 1 0 0 0 1 1%
Vendor 0 0 1 2 3 3%
Driver 2 2 0 2 6 6%
Government Worker 5 5 4 3 17 17%
Laborer 3 5 1 3 12 12%
Farmer 1 0 0 0 1 1%
Sales lady 1 1 0 1 3 3%
Proprietor 1 3 2 7 13 13%
Security Guard 0 0 0 1 1 1%
Others:
Allotment 0 2 0 0 2 2%
Asst. librarian 1 0 0 0 1 1%
Businessman/
Businesswoman
0 2 5 0 7 7%
Caretaker 1 1 0 0 2 2%
Cashier 0 0 0 1 1 1%
Dressmaker 0 1 0 0 1 1%
Housekeeper 2 1 0 2 5 5%
Lineman 1 0 0 0 1 1%
Sales Agent 0 0 1 1 2 2%
Service Crew 0 1 0 1 2 2%
Student 1 1 0 0 2 2%
Surveyor 1 0 0 0 1 1%
TOTAL 30 30 15 25 100 100%

33
Figure 3.5 Pie Graph of Occupation Distribution
Figure 3.5 shows that 27% of the respondents work as allotment, assistant
librarian, caretaker, cashier, dressmaker, housekeeper, lineman, sales agent, service
crew, student and surveyor. While there are 17% who works as government worker,
13% are proprietor, 12% are laborer, and 11% are office worker. About 6% of them are
driver and 5% are teacher. There are also vendors and sales ladies, which both
represent 3%. Farmer, fisherman and security guard have a percentage of 1% each.
A.2 Appliances and other Items in a Home Appliances Store
Table 4.1
Respondents Response to Kinds of Appliances they look for in a Home
Appliances Store
APPLIANCES
ZONE
I
ZONE
II
ZONE
III
ZONE
IV
TOTAL %
Small 9 12 3 10 34 34%
Major 7 6 5 14 32 32%
Others: Both 14 12 7 1 34 34%
TOTAL 30 30 15 25 100 100%
Figure 4.1 Pie Graph of Kind of Appliances the Respondents Look for

34
Figure 4.1 shows that the respondents both look for major and small appliances
in a Home Appliances Store.
Table 4.2
Respondents Response to Appliances they look for in a Home Appliances Store
APPLIANCES ITEMS
ZONE
I
ZONE
II
ZONE
III
ZONE
IV
TOTAL RANK
MAJOR APPLIANCES
Washing Machine 16 18 10 11 55 3
Refrigerator 20 17 12 12 61 2
Computer 12 17 11 10 50 4
Television 27 24 14 20 85 1
Microwave Oven 3 10 6 6 25 7
Air Conditioner 6 8 9 4 27 5
Grill Cooker 2 0 1 3 6 10
Electric Stove 8 7 7 4 26 6
Clothes Dryer 4 8 5 8 25 7
Drying Cabinet 1 0 1 6 8 9
SMALL APPLIANCES
Water Dispenser 8 7 8 12 35 6
Rice Cooker 17 19 14 14 64 3
DVD/ VCD Player 23 23 12 18 76 2
Oven Toaster 8 10 6 5 29 7
Electric Fan 24 26 13 19 82 1
Vacuum Cleaner 3 6 3 2 14 10
Hair Dryer 2 7 4 2 15 9
Coffee Maker 3 11 4 3 21 8
Iron 12 15 13 15 55 4
Blender 8 12 8 8 36 5
Table 4.2 shows that the common appliance items that the respondents willing to
buy for are: Television, Refrigerator, Washing Machine, Computer and Air Conditioner
(for major appliances) and Electric fan, DVD Player, Rice cooker, Iron and Blender (for
small appliances).

35
Table 4.3
Respondents Response to Prices they are willing to spend for each Appliance
MAJOR APPLIANCES Average Price SMALL APPLIANCES Average Price
Television 10,150.00 Electric fan 1,300.00
Refrigerator 11,900.00 DVD Player 2,700.00
Washing Machine 8,100.00 Rice Cooker 1,250.00
Computer 18,650.00 Iron 850.00
Air Conditioner 14,100.00 Blender 1,400.00
Electric Stove 7,400.00 Water Dispenser 4,000.00
Microwave Oven 6,000.00 Oven Toaster 1,600.00
Clothes Dryer 4,000.00 Coffee Maker 2,400.00
Drying Cabinet 5,500.00 Hair Dryer 1,100.00
Grill Cooker 4,250.00 Vacuum Cleaner 3,400.00
The prices indicated above are not generally fixed. This only shows the limit on
how much the buyer would be willing to spend for a product.
Table 4.4
Respondents Response According to their Preferred Terms of Payment
PAYMENT
ZONE
I
ZONE
II
ZONE
III
ZONE
IV
TOTAL %
Cash-on-Delivery 17 16 4 14 51 51%
On-Account (Installment) 12 10 6 6 34 34%
Others: Both 1 4 5 5 15 15%
TOTAL 30 30 15 25 100 100%
Figure 4.2 Pie Graph of the Respondents Preferred Terms of Payment

36
Figure 4.2 shows that more than half of the respondents preferred Cash–on–
Delivery having 51% and is closely related to On–Account (Installment) which is 34%,
while there are only 15% of the respondents who preferred both terms of payment.
A.3 Attitudes and Perceptions towards Home Appliances Store
Table 5. Respondents Response to what are their Attitudes and Perceptions in
Home Appliances Store
Attitudes/ Perceptions
towards SA
(5)
A
(4)
U
(3)
D
(2)
SD
(1)
WM
Analy
sis
Rank
1.He/she goes to appliances
store to buy appliances as a
gift.
9 37 23 22 9 3.15 U 9
2. People buy branded
appliances.
25 52 10 9 4 3.85 A 6
3. People buy appliances
which may also be used in
operating a business.
31 56 7 6 0 4.12 A 2
4. We buy appliance
because it makes our works
easier.
51 43 4 2 0 4.43 SA 1
5. We buy appliances when
there is promo and sale.
35 46 14 5 0 4.11 A 3
6. Men and women look for
appliances they may need in
starting to build a family.
23 55 20 1 1 3.98 A 4
7. People want to buy
appliances because these
are time-savers.
25 57 10 6 2 3.97 A 5
8. People preferred to use
appliances because these
help in saving energy.
13 42 24 14 7 3.4 A 8
9. People buy appliances
because these may serve as
Collateral when they failed to
pay his/her debt.
5 29 22 30 14 2.81 U 10
10. People buy appliances if
there is a demonstration on
how to use the product.
18 34 29 15 4 3.47 A 7

37
Table 5 shows that most of the respondents’ attitudes and perceptions towards
Home Appliances Store are the following top five (5):
1. The respondents STRONGLY AGREE that they buy appliance because it makes
their works easier, with a weighted mean of 4.43.
2. The respondents AGREE that they buy appliances which may also be used in
operating a business, with a weighted mean of 4.12.
3. The respondents AGREE that they buy appliances when there is promo and
sale, with a weighted mean of 4.11.
4. The respondents AGREE that they look for appliances they may need in starting
to build a family, with a weighted mean of 3.98.
5. The respondents AGREE that they want to buy appliances because these are
time – savers, with a weighted mean of 3.97.
A.4 Attributes of a Home Appliances Store
Table 6. Respondents Response to what Attributes they preferred
in Home Appliances Store
Attributes of a
SP
(5)
MP
(4)
P
(3)
LP
(2)
NP
(1)
WM
Analy
sis
Rank
1. Offers Affordable Price 13 57 28 0 2 3.79 MP 5
2. With complete appliances
items suited for the home.
6 39 44 7 4 3.36 P 12
3. Clean and Comfortable 9 54 37 0 0 3.72 MP 9
4. Well ventilated 9 51 40 0 0 3.69 MP 11
5. Good Location 11 58 31 0 0 3.80 MP 4
6. With new stocks of
appliances
17 45 34 1 3 3.72 MP 9
7. Friendly and
knowledgeable staff.
12 61 27 0 0 3.85 MP 2
8. Secured and accessible
location
12 53 35 0 0 3.77 MP 6

38
9. Offering discounts for
regular buyers.
8 61 30 0 1 3.75 MP 7
10. Offering discounts for
cash-on-delivery.
9 61 27 0 3 3.73 MP 8
11. With catalog of
appliances
2 44 28 8 18 3.04 P 13
12. Offering free delivery 12 60 28 0 0 3.84 MP 3
13. Offering warranty 17 63 20 0 0 3.97 MP 1
Table 6 shows that most of the respondents’ preferred attributes towards Home
Appliances Store are the following top five (5):
1. Offering warranty, with a weighted mean of 3.97.
2. Friendly and knowledgeable staff, with a weighted mean of 3.85.
3. Offering free delivery, with a weighted mean of 3.84.
4. Good location, with a weighted mean of 3.80.
5. Offers affordable price, with a weighted mean of 3.79.
A.5 Competition of Home Appliances Store in Atimonan, Quezon
Table 7.1
Respondents Responses on Stores they go when they buy Appliances
STORES
ZONE
I
ZONE
II
ZONE
III
ZONE
IV
TOTAL %
Royal Appliances Store 6 12 3 5 26 17%
Princess Klein 4 2 2 1 9 6%
Mariz Furniture 14 8 3 12 37 25%
SM Lucena 12 22 13 13 60 40%
Gumaca, Quezon 5 5 2 3 15 10%
Others: Pacific Mall 1 0 1 0 2 1%
Manila 0 1 0 0 1 1%
TOTAL 42 50 24 34 150 100%

39
Figure 5. Pie Graph of Stores where the Respondents go when buying Appliances
Figure 5 shows that 40% of the respondents go to SM Lucena to buy appliances.
Secondly, about 25% of the respondents go to Marie’s Furniture, and is closely related
to 17% of the respondents who go to Royal Star. There were 10% of them who go to
Appliances Stores in Gumaca, Quezon. Other respondents go to Princess Klein, Pacific
Mall and Manila having 6%, 1% and 1% respectively. Thus, the main competitors of the
proposed business are the SM Appliance Centre and Marie’s Furniture.
Table 7.2
Respondents Response to Kinds of Appliances offered by other Appliance Store
in Atimonan, Quezon
APPLIANCES
ZONE
I
ZONE
II
ZONE
III
ZONE
IV
TOTAL %
Major 11 4 6 7 28 28%
Small 9 12 3 11 35 35%
Others: Both 10 14 6 7 37 37%
TOTAL 30 30 15 25 100 100%

40
Figure 6. Pie Graph of the Kinds of Appliances Offered in Atimonan
Figure 6 shows that 37% of the respondents think that the Appliances providers
in Atimonan, Quezon offers both Major and Small appliances. It is closely related to 35%
of the respondents who think that the Appliances providers in Atimonan, Quezon only
offers Small appliances, while 28% of the them think that the Appliances providers here
offers Major Appliances only.
Table 7.3
Respondents Response to Frequency of Buying Home Appliances
APPLIANCES
ZONE
I
ZONE
II
ZONE
III
ZONE
IV
TOTAL %
Monthly 3 1 1 1 6 6%
Quarterly 2 2 0 1 5 5%
Annually 3 4 1 2 10 10%
When there is special
occasion
1 1 0 0 2 2%
When needed 20 19 13 21 73 73%
Others: When they have
money
1 3 0 0 4 4%
TOTAL 30 30 15 25 100 100%

41
Figure 7. Pie Graph of the Respondents Frequency of buying Appliances
Figure 7 shows that 73% of the respondents said that they only buy appliances
when these are needed. Thus it may be said that appliances is a kind of slow–moving
product. Only 10% of the respondents answered that they buy appliances annually.
A.6 Respondents Responses to Proposed Home Appliances Store
Table 8.1
Respondents Response to their Willingness to go to New Home Appliances Store
in Atimonan, Quezon
RESPONSES
ZONE
I
ZONE
II
ZONE
III
ZONE
IV
TOTAL %
Yes 18 17 13 9 57 57%
No 3 0 1 2 6 6%
Maybe 9 13 1 14 37 37%
TOTAL 30 30 15 25 100 100%
Figure 8.1 Pie Graph of the Respondents Willingness to go to New Home
Appliances Store in Atimonan
Yes
57%
No
6%
Maybe
37%
RESPONDENTS RESPONSE TO THEIR WILLINGNESS TO GO TO NEW
APPLIANCES STORE IN ATIMONAN

42
Figure 8.1 shows that 57% of the respondents are willing to buy appliances when
there is a new Home Appliances Store in Atimonan, Quezon. 37% of them said that they
may or may not buy appliances to a Home Appliances Store in Atimonan, Quezon, and
there are 6% who said that they would are not willing to buy appliances from it.
Table 8.2
Respondents Response to their Preferred Operating Days
of Home Appliances Store
OPERATING DAYS
ZONE
I
ZONE
II
ZONE
III
ZONE
IV
TOTAL %
Daily 16 20 11 12 59 59%
Weekdays 8 4 4 4 20 20%
Weekends 6 6 0 7 19 19%
Others: Yearly 0 0 0 1 1 1%
When needed 0 0 0 1 1 1%
TOTAL 30 30 15 25 100 100%
Figure 8.2 Pie Graph of the Respondents Preferred Operating Days for Home
Appliances Store
In Figure 8.2, it shows that more than half of the respondents preferred to
operate the business “daily”. There are 20% of the respondents who preferred to operate
the business Weekdays, and is closely related to 19% of the respondents who preferred
Weekends.

43
Table 8.3. Respondents Response to their Preferred Operating Hours
of Home Appliances Store
OPERATING HOURS
ZONE
I
ZONE
II
ZONE
III
ZONE
IV
TOTAL %
7:00 am - 4:00 pm 4 2 1 2 9 9%
8:00 am - 5:00 pm 14 11 10 6 41 41%
9:00 am - 6:00 pm 4 5 3 3 15 15%
7:00 am - 7:00 pm 6 3 1 3 13 13%
8:00 am - 6:00 pm 2 9 0 9 20 20%
Others: 1:00 pm 0 0 0 1 1 1%
6:00 am - 6:00 pm 0 0 0 1 1 1%
TOTAL 30 30 15 25 100 100%
Figure 8.3 Pie Graph of the Respondents Preferred Operating Hours for Home
Appliances Store
Figure 8.3 shows that 41% of the respondents expected to operate the Home
Appliances store at 8:00 am – 5:00 pm. There are 20% of the respondents who prefer
8:00am – 6:00 pm operating hours.

44
B. RESULTS OF INTERVIEW
B.1 Results of the interview with the branch manager of Alson’s
Trading14
: Ms. Maria Luz A. Labo
A sole proprietorship appliance business, Alson’s Trading was founded on 1980
and is now selling several brands of appliances. It is an inherited business by Paulo
P. Ballesteros, Jr., a former manager of Radiowealth Financing Company and is
married to Salvacion Nieva, a daughter of a businessman in Guinobatan, Albay –
both were business inclined and decided to put up a business. At first, they sell
motorcycle and bicycle parts, since several stores exist with the similar line of
business, they tried buying and selling, specifically appliances. Sanyo products
became the first brand they sell. Their main branch is in Iriga City of Bicol region.
During the late 1990’s, the branch expansion plan was implemented and currently
the company has 37 stronghold branches throughout Southern Luzon.
 Market/ Sales
According to the branch manager, most of their markets are parents about 30
years old and above. Commonly, the appliances that they look for are television,
refrigerator and microwave oven. Alson’s Trading also sells furniture’s like sala set,
dining table, divider, etc. They give promos, freebies and the promodizers talk to
market so as to induce them to frequently buy appliances in Alson. They also give
discounts of up to 10%.
 Operational Aspects
The place of the business is rented for Php. 12,000.00/ month. Their items are
being source from LG, Samsung, Sharp, Sanyo, Ryojan, TCL, Condura, and Higher.
When they have stocks of appliances, they use First-in, First-out (FIFO) method to
avoid aging of the units. The government requirements needed for this business are:
Business permit, DTI permits, Taxpayer Identification Number (TIN), Form 0605,
sanitary permit and Fire Insurance. In the 37 years of the company’s existence, the
14
Location: J. P. Rizal St. Zone IV Poblacion Atimonan, Quezon

45
common problems they encountered are having defective units, calamity, and having
customers that do not pay their obligations.
 Manpower Aspects
The business has six (6) direct employees and nine (9) sales agents, and whose
branch manager is Ms. Maria Luz Labo. The employees are provided with the
necessary benefits such as Social Insurance System (SSS), 13th
month pay and
sales incentives. Being stubborn, unmanageable, slow learner and breaking with the
company policies are common problems they encounter with their employee.
 Financial Aspects
Alson’s starting capital was Php. 20,000.00 and presently had a Gross Income of
Php. 10,000,000.00. Approximately, their sales per day is about Php. 25,000.00 –
Php. 60,000.00, and their sales per month is estimated to Php. 1,200,000.00. For
their operating expenses, they incurred about Php. 120,000.00 – Php. 150,000.00.
This usually consists of the: Training Expenses, Travelling Allowances, Fuel,
Electricity, Rent, Office supplies, Maintenance, and Taxes and Licenses.
B.2 Results of the interview with the branch manager of Royal Star
Appliance Marketing15
: Ms. Vivian Vallesteros
Royal Star Appliance Marketing Inc. is a family – owned business under the
Lazaro Group of Companies by the former Laguna Governor Teresita Lazaro, which
started as a plastic wares store. This business started as a source of income of the
Lazaro family. While teaching, Governor Lazaro started to sell plastic wares and the
like products, with the help of her husband Mr. Angelito Lazaro.
 Market/ Sales
The target markets usually are the people who are fond of using appliances for
the convenience work at home and any other establishments and institutions that
15
Location: Juez Andres St. Zone IV Poblacion Atimonan, Quezon

46
need to use the appliances. In Atimonan branch, television, refrigerators washing
machine and small items such as gas stove, electric fans are most sold out. Royal
Star also sells furniture’s such as sala set, dividers, dining sets and also computers.
Currently, Royal Star has forty (40) branches to sell the product, wherein each
branch has a staff in–charge to supervise and monitor the sales. They also have
different product promoter for better explanation on how to use the appliance. They
also have field agents, who go house-to-house for promoting a product. A discount is
given especially on peak seasons and also had other promos such as product
bundling, freebies, and others. Their basis on giving discounts depends upon the
negotiation with the suppliers of their products.
 Operational Practices
The place of the business is owned and rented from Mr. Elvis Lim. The products
they sell mostly come from different manufacturers or suppliers like Sharp, CDI,
General Electric, Standard, Media Com, TCL, Promac, La Germania, LG Collins,
American Home, Hyundai, etc.
They are also using FIFO method to avoid the aging of their stocks/ units. To
operate this business, it also needs the necessary permits and the BIR requirements.
Common problem they encountered in operating the business is the competition with
other Appliance Stores.
 Manpower Aspects
Per branch, four (4) direct employees are employed. It involves: the Manager,
who supervised and managed all the operations and sales of the branch store; the
Secretary, who also acts as a cashier and is liable for all documents, money and
funds of the branch store; the Utility, who is responsible for the maintenance of the
branch store; and a Driver, who is in–charge for the deliveries and usually helps the
utility. According to Ms. Vivian Vallesteros, the branch manager, each of the
employees received proper benefits in terms of health benefits and SSS.
However, promodizers or product promoters are not employees of the company.
They were only assigned by their agency to duty at different branches.

47
 Financial Aspects
The sales per day and per month vary. Approximately Php. 450,000.00 – Php.
1,000,000.00 is their sales per month. They have petty cash fund to use for their
operating expense such as diesel for truck service and its maintenance, commission
for the sales agent and office sale. Among the fees that they pay to the government
are: Mayor’s Permit fee, Sanitary Inspection fee, Annual Inspection fee, Health
Certificate, Tax Clearance, garbage fee, Business Plate, Business Tax, Certificate
fee, and Fire Safety Inspection fee.
B.3 Results of the interview with the owner of RIEN AND RAINY
GENERAL MERCHANDISE16
: Mr. Glenn D. Oliveros
The first name of the business was Rien’s bicycle, when it started the business
on 1982 occupying a stall in Gumaca Public Market. Before, it was a children’s
specialty store selling few pieces of bicycles, spare parts and limited toys. With only
Php. 7,000.00 they had a lucky start because bicycle specially the BMX model
became the kids’ favorite and their stocks moved–out fast. With little savings they
started adding different children and infant’s wear. Later, they started video business.
After four years, they changed their store name to Rien and Rainy, named after their
two (2) children. But the stall was burned when a big fire razed Gumaca. They built
their own commercial building just a block away from Gumaca Public Market.
Because the space was big, the idea of adding furnitures came, and later the
appliances, so they register their company name to “RIEN AND RAINY GENERAL
MERCHANDISE”.
As years went by, they became the dealer of branded appliances and same with
furniture manufacturers and importers. In 2001 they first ventured to Lucena City,
looking forward to more sales and have a bigger market share. They rented a space
16
Location: Corner Principe St. Maharlika Highway Gumaca, Quezon

48
and after three years they were able to buy a prime lot and built a five (5) storey
commercial building.
They set up this kind of business to bring the merchandise nearer to people
because their town location is quite far from the capital city where there are
appliances and furniture shop.
Among their major customers are: Mount Carmel Diocesan General Hospital
,Enverga University Foundation, Maryhill College, sacrred Heart College, St. Jude
Multi-purpose Cooperative, TCMC – Tayabas Cooperative, San Luis Cooperative –
Lucban, Quezon, Macdeco – Mauban Cooperative, QPLC – Quezon Poultry,
Southern Luzon State University, and Graceland Country Club.
They source their items from different suppliers like Carrier, Condura, Sharp,
Panasonic, Hitachi, TW & Co – La Germania, Whirlpool, Fujidenzo, Hanabishi,
Toshiba, American Home, Eurotek, Standard, Eureka, and TCL.
Their Gross Income from Sales is Php. 40,165,000.00.
The operating expenses they incurred for the whole year are as follows:
OPERATING EXPENSES AMOUNT
Salaries, Wages and Commission Php. 6,095,600.00
Light and Water Php. 612,211.00
Representation Expense Php. 416,951.00
Store Supplies Php. 386,316.00
Telephone and Postage Php. 258,940.00
Fuel, Oil and Lubricant Php. 862,383.00
Taxes and Licenses Php. 355,850.00
SSS Contributions Php. 293,620.00
Interest Expenses Php. 2,325,356.00
Depreciation Php. 3,003,019.00
Table 9. Operating expenses of the Rien and Rainy General
Merchandise (Appliance and Furniture Division) for the year 2008.

49
CHAPTER V
MARKET FEASIBILITY
A. INDUSTRY DESCRIPTION/ COMPETITIVENESS
This study considered the size and scope of the market, wherein the researcher
used 100 respondents from the number of households in Zone I, Zone II, Zone III and
Zone IV Poblacion and distributed in their respective percentages as 30%, 30%, 15%
and 25%.
The appliance business here in Atimonan is in growth stage, consequently the
nature of the industry of Appliances Stores in the town is stable because there is less
appliance business existing in town and there are also few competitors upon entry of the
new business.
There are 3 Appliances Stores in Atimonan, Quezon which are located in
Poblacion. Two of them are located in Barangay Zone IV and the other one in Barangay
Zone I. Among the existing competitors of the proposed Appliances Store in Atimonan,
Quezon are Royal Star Appliance Marketing, Marie’s Furniture, and Princess Klein.
Though these stores had already their names and positions in the appliance industry,
the proposed business will compete directly with them and will differ from its free delivery
and free installation at home and will grant an extended warranty for the parts and labor
service.
The selling price of an appliance would be mark-up based on the terms of
payment preferred by a customer. Prices of appliances may vary per brand. This kind of
business has seasonality and the effect of seasonality may rely on the fact that the price
of an appliance decreases due to discount offers during lean months.
During lean seasons, existing competitors do offers promos such as product
bundling, giving freebies and also launching sales for the product. While, for peak
seasons, existing competitors are most likely to give discounts so as to more encourage
the market to buy the product. A new industry player cannot easily enter into this kind of
business because huge capital is needed in establishing this kind of business. But the

50
researcher still wants to pursue this business because of the opportunities present in the
locality.
Based on the result of the survey, the attributes that the market preferred is of
free warranty and free delivery. So the proposed business will grant an extended
warranty for the parts and labor service – an offer that existing competitors do not have.
Upon delivery of the product, the business would do free installation of the appliances at
home.
B. ACCESS TO MARKET OUTLETS OR CHANNELS OF DISTRIBUTION
The proposed business is store–based. The researcher will establish a store with
showroom, where people can go to buy appliances. The potential buyers for the
proposed business venture are couples who are 20 – 50 years old residing in Atimonan,
Quezon. Other residents of the nearby islands like Alabat and Perez, Quezon may be
potential buyers also, because they may rather go to Atimonan, which is quite a nearer
town to them than going to Lucena City.
C. ACCESS TO SUPPLY
The possible suppliers for the appliance items are those legitimate suppliers such
as Concepcion Carrier Air condition Co., Condura Durables Inc. Sharp Corporation,
Panasonic Corporation, TW & Co – La Germania, Excellence Appliance Co., Hanabishi
Corporation, TCL Sun Inc., Standard Corporation and other distributors from other
locations. They can be contacted through cellular phones and online computer. The
suppliers will personally deliver the appliances as scheduled.
The electricity of the store will be sourced from Quezon Electric Cooperative
(QUEZELCO) in Atimonan, Quezon. The fuel for delivery truck will be sourced from any
gasoline station within the locality. For telephone service, the source would be the GTSI
within the locality also.
D. GOVERNMENT REGULATIONS AFFECTING THE SUPLY AND DEMAND
To start up a Home Appliances Store whose structure is a partnership, the
following government requirements are needed:

51
 SEC Registration & Articles of the Partnership and By-Laws of the Partnership
 Verification of the business name with SEC
 Registration of business name with the DTI
 Registration of BIR Taxpayer Identification Number (TIN)
 Business Permits from the LGU:
 Mayor’s Permit
 Sanitary Permit
 Building Permit
 Health Certificate
 Electrical Inspection
 Plumbing Inspection
 Setting up a home appliances store does not require any special permit.
E. PROPOSED MARKETING PROGRAM
The proposed Appliance business would sell both major and small appliances.
Based on the result of the survey, the proposed business would sell appliance items that
the markets commonly look for, such as television, refrigerator, washing machine,
computer, clothes dryer, air conditioner, electric fan, DVD/VCD players, rice cooker, iron,
water dispenser and blender.
The target market are couples of age 20 – 50 years old, residing in Atimonan,
Quezon and has a family monthly income bracket of Php.8,000.00 and below.
The proposed business will offer the following attributes: “offering free warranty”,
“friendly and knowledgeable staff”, “offering free delivery”, “good location” and “offers
affordable price” – to encourage customers to buy the product.
Based on the market survey, the amount they indicated for each product are
computed, and resulted as follows:
MAJOR
APPLIANCES
Average
Price
SMALL
APPLIANCES
Average Price
Television 10,150.00 Electric fan 1,300.00
Refrigerator 11,900.00 DVD Player 2,700.00
Washing Machine 8,100.00 Rice Cooker 1,250.00
Computer 18,650.00 Iron 850.00
Air Conditioner 14,100.00 Blender 1,400.00
Electric Stove 7,400.00 Water Dispenser 4,000.00
Microwave Oven 6,000.00 Oven Toaster 1,600.00

52
Clothes Dryer 4,000.00 Coffee Maker 2,400.00
Drying Cabinet 5,500.00 Hair Dryer 1,100.00
Grill Cooker 4,250.00 Vacuum Cleaner 3,400.00
Table 10. Proposed prices for each appliance items based on the market survey
Note: The prices indicated above are not generally fixed. This only shows the
limit on how much the buyer would be willing to spend for a product.
Based on the result of the survey, the proposed business would also offer
discounts for the regular buyers and for the appliances bought on cash basis. The
business will also have product bundling especially during lean seasons. Example of
product bundling is “Buy 1 Sharp Flat Screen TV (21 inch) and 1 Sharp DVD Player for
only Php. 7, 190.00”.
As part of the marketing program for the proposed business, the proponent will
have advertising and promotions, which will be allotted with Php. 1,000.00 a month for
advertising and for providing the materials necessary in promoting the business.
The proposed business would also promote its auxiliary business such as
availing appliance items in an installment basis. The proposed business would also tie –
up with any business firms here in Atimonan who are willing to grant appliance loan to
their employees. Their installment fees will be deducted from their monthly salary.
F. MARKET POTENTIAL AND PROJECTED SALES
 ASSUMPTIONS:
The target market is around 2,772 numbers of households17
from the four Zones
of Poblacion in Atimonan . Based on the result of the survey 57% of the respondents are
willing to patronize the proposed business venture and there are 37% who said “maybe”
and 6% who said “no”. So the researcher assumed that she will initially tap only 15% of
the market. The researcher assumed that 15% is a reasonable estimate because it is a
lower percentage share than Royal Star Appliance Marketing which is the major
competitor of the proposed business.
17
Source: Municipal Planning and Development Council (MPDC), 2010 RHU Survey

53
The market potential of the proposed business is estimated at 57% x 2,772 x
15%, which is equivalent to 237 numbers of households. The researcher rounded this off
to 240 numbers of households – the initial market potential for the proposed Home
Appliances Store.
Based on the market survey, 73% of the respondents buy appliances only “when
needed” and 10% of them buy “annually”. The market agrees that they buy appliances
which may be used in operating a business and in starting to build a family. Hence, the
business has seasonality.
The peak seasons for the proposed business are as follows:
January - the first month of the year, the people buy new appliances to
replace their former appliances which last for a year(s). Other
person believes that having new appliances also brings luck
for the whole year.
May - the month were most weddings are scheduled. Appliances
serve as a gift to the newlywed couple.
June - another month were most weddings are scheduled.
December - Christmas season, people receives money such as cash gift
and 13th
month pay, thus this is the month they buy appliances
they want. Others do buy appliances to serve as gift or raffle
items for Christmas party.
The lean seasons for the proposed business are as follows:
February - ordinary month
March - ordinary month
April - ordinary month
July - ordinary month
August - ordinary month
September - ordinary month
October - ordinary month
November - ordinary month

54
Based on the result of the survey, 51% of the respondents will buy small
appliances and 49 % of them will buy major appliances. To get the potential demand
count of the major and small appliances, the following computations are shown:
 Major Appliances potential demand count
- 49% * 240 households = 118 number of households
 Small Appliances potential demand count
- 51% * 240 households = 122 number of households
Based on the result of the survey, 6% of the market buys appliances monthly, 5%
of them buys quarterly and 89% of the market buy only once a year. From the market’s
frequency of buying appliances stated above, the following assumptions for market base
per month are drawn:
Table 11. Potential Demand Count for Major & Small Appliances per Month
Months Major Appliances Small Appliances
Calculation Market Base Calculation Market Base
January 118 * 6% * 100% 7 122 * 6% * 100% 7
February 118 * 6% * 75% 5 122 * 6% * 75% 5
March 118 * 5% * 100% 6 122 * 5% * 100% 6
April 118 * 6% * 75% 5 122 * 6% * 75% 5
May 118 * 6% * 100% 7 122 * 6% * 100% 7
June 118 * 6% * 100% 7 122 * 6% * 100% 7
July 118 * 6% * 75% 5 122 * 6% * 75% 5
August 118 * 6% * 75% 5 122 * 6% * 75% 5
September 118 * 5% * 100% 6 122 * 5% * 100% 6
October 118 * 6% * 75% 5 122 * 6% * 75% 5
November 118 * 6% * 75% 5 122 * 6% * 75% 5
December 118 * 89% * 75% 79 122 * 89% * 75% 81
Table 11 shows the potential demand count per month for major and small
appliances. Here, the researcher assumed that for lean seasons, 75% of the market may
buy appliances to the proposed business. For the month of December which is a peak
season, the researcher also assumed 75% of the market who will go to the proposed
business. It is a smaller percentage compared to other peak months, because the
researcher assumed that not all the 89% of the market will simultaneously buy

55
appliances at that month. However, for the month of June, which falls on the 2nd
quarter,
the researcher assumed 6% and not 5% because the month of June is a peak season.
Table 12. Forecasted Annual Sales of Major Appliances
Month
Products
they buy
Effective
%
Market
Base
Qty
Average
Price
Projected
Sales
January
Television 31% 7 2 10,150.00 20,300.00
Refrigerator 22% 7 2 11,900.00 23,800.00
Washing
Machine
20% 7 1 8,100.00 8,100.00
Computer 18% 7 1 18,650.00 18,650.00
Air
Conditioner
10% 7 1 14,100.00 14,100.00
February
Television 31% 5 2 10,150.00 20,300.00
Refrigerator 22% 5 1 11,900.00 11,900.00
Washing
Machine
20% 5 1 8,100.00 8,100.00
Computer 18% 5 1 18,650.00 18,650.00
Air
Conditioner
10% 5 1 14,100.00 14,100.00
March
Television 31% 6 2 10,150.00 20,300.00
Refrigerator 22% 6 1 11,900.00 11,900.00
Washing
Machine
20% 6 1 8,100.00 8,100.00
Computer 18% 6 1 18,650.00 18,650.00
Air
Conditioner
10% 6 1 14,100.00 14,100.00
April
Television 31% 5 2 10,150.00 20,300.00
Refrigerator 22% 5 1 11,900.00 11,900.00
Washing
Machine
20% 5 1 8,100.00 8,100.00
Computer 18% 5 1 18,650.00 18,650.00
Air
Conditioner
10% 5 1 14,100.00 14,100.00
May
Television 31% 7 2 10,150.00 20,300.00
Refrigerator 22% 7 2 11,900.00 23,800.00

56
Washing
Machine
20% 7 1 8,100.00 8,100.00
Computer 18% 7 1 18,650.00 18,650.00
Air
Conditioner
10% 7 1 14,100.00 14,100.00
June
Television 31% 7 2 10,150.00 20,300.00
Refrigerator 22% 7 2 11,900.00 23,800.00
Washing
Machine
20% 7 1 8,100.00 8,100.00
Computer 18% 7 1 18,650.00 18,650.00
Air
Conditioner
10% 7 1 14,100.00 14,100.00
July
Television 31% 5 2 10,150.00 20,300.00
Refrigerator 22% 5 1 11,900.00 11,900.00
Washing
Machine
20% 5 1 8,100.00 8,100.00
Computer 18% 5 1 18,650.00 18,650.00
Air
Conditioner
10% 5 1 14,100.00 14,100.00
August
Television 31% 5 2 10,150.00 20,300.00
Refrigerator 22% 5 1 11,900.00 11,900.00
Washing
Machine
20% 5 1 8,100.00 8,100.00
Computer 18% 5 1 18,650.00 18,650.00
Air
Conditioner
10% 5 1 14,100.00 14,100.00
September
Television 31% 6 2 10,150.00 20,300.00
Refrigerator 22% 6 1 11,900.00 11,900.00
Washing
Machine
20% 6 1 8,100.00 8,100.00
Computer 18% 6 1 18,650.00 18,650.00
Air
Conditioner
10% 6 1 14,100.00 14,100.00
October
Television 31% 5 2 10,150.00 20,300.00
Refrigerator 22% 5 1 11,900.00 11,900.00
Washing
Machine
20% 5 1 8,100.00 8,100.00
Computer 18% 5 1 18,650.00 18,650.00

57
Air
Conditioner
10% 5 1 14,100.00 14,100.00
November
Television 31% 5 2 10,150.00 20,300.00
Refrigerator 22% 5 1 11,900.00 11,900.00
Washing
Machine
20% 5 1 8,100.00 8,100.00
Computer 18% 5 1 18,650.00 18,650.00
Air
Conditioner
10% 5 1 14,100.00 14,100.00
December
Television 31% 79 24 10,150.00 243,600.00
Refrigerator 22% 79 17 11,900.00 202,300.00
Washing
Machine
20% 79 16 8,100.00 129,600.00
Computer 18% 79 14 18,650.00 261,100.00
Air
Conditioner
10% 79 8 14,100.00 112,800.00
Total Estimated Revenue (Year 1) 1,788,650.00
 The estimated annual revenue on year 1 for major appliances is Php.
1,788,650.00.
 On the 2nd year, the researcher assumed that the estimated sales of major
appliances may increase to 15% leading to annual revenue of Php. 2,056,947.50
because the customers who go to the proposed business venture will like the
services and the affordable prices of the appliances.
 On the 3rd year, the researcher assumed that the estimated sales of major
appliances may increase to 20% from the 2nd year estimated sales resulting to
revenue of Php. 2,468,337.00 because the business will offer an appliance loan.

58
Table 13. Forecasted Annual Sales of Small Appliances
Month
Products
they buy
Effective
%
Market
Base
Qty
Average
Price
Projected
Sales
January
Electric Fan 26% 7 2 1,300.00 2,600.00
DVD/VCD
Player
24% 7 2 2,700.00 5,400.00
Rice Cooker 20% 7 1 1,250.00 1,250.00
Iron 18% 7 1 850.00 850.00
Blender 12% 7 1 1,400.00 1,400.00
February
Electric Fan 26% 5 1 1,300.00 1,300.00
DVD/VCD
Player
24% 5 1 2,700.00 2,700.00
Rice Cooker 20% 5 1 1,250.00 1,250.00
Iron 18% 5 1 850.00 850.00
Blender 12% 5 1 1,400.00 1,400.00
March
Electric Fan 26% 6 2 1,300.00 2,600.00
DVD/VCD
Player
24% 6 1 2,700.00 2,700.00
Rice Cooker 20% 6 1 1,250.00 1,250.00
Iron 18% 6 1 850.00 850.00
Blender 12% 6 1 1,400.00 1,400.00
April
Electric Fan 26% 5 1 1,300.00 1,300.00
DVD/VCD
Player
24% 5 1 2,700.00 2,700.00
Rice Cooker 20% 5 1 1,250.00 1,250.00
Iron 18% 5 1 850.00 850.00
Blender 12% 5 1 1,400.00 1,400.00
May
Electric Fan 26% 7 2 1,300.00 2,600.00
DVD/VCD
Player
24% 7 2 2,700.00 5,400.00
Rice Cooker 20% 7 1 1,250.00 1,250.00
Iron 18% 7 1 850.00 850.00
Blender 12% 7 1 1,400.00 1,400.00
June
Electric Fan 26% 7 2 1,300.00 2,600.00

59
DVD/VCD
Player
24% 7 2 2,700.00 5,400.00
Rice Cooker 20% 7 1 1,250.00 1,250.00
Iron 18% 7 1 850.00 850.00
Blender 12% 7 1 1,400.00 1,400.00
July
Electric Fan 26% 5 1 1,300.00 1,300.00
DVD/VCD
Player
24% 5 1 2,700.00 2,700.00
Rice Cooker 20% 5 1 1,250.00 1,250.00
Iron 18% 5 1 850.00 850.00
Blender 12% 5 1 1,400.00 1,400.00
August
Electric Fan 26% 5 1 1,300.00 1,300.00
DVD/VCD
Player
24% 5 1 2,700.00 2,700.00
Rice Cooker 20% 5 1 1,250.00 1,250.00
Iron 18% 5 1 850.00 850.00
Blender 12% 5 1 1,400.00 1,400.00
September
Electric Fan 26% 6 2 1,300.00 2,600.00
DVD/VCD
Player
24% 6 1 2,700.00 2,700.00
Rice Cooker 20% 6 1 1,250.00 1,250.00
Iron 18% 6 1 850.00 850.00
Blender 12% 6 1 1,400.00 1,400.00
October
Electric Fan 26% 5 1 1,300.00 1,300.00
DVD/VCD
Player
24% 5 1 2,700.00 2,700.00
Rice Cooker 20% 5 1 1,250.00 1,250.00
Iron 18% 5 1 850.00 850.00
Blender 12% 5 1 1,400.00 1,400.00
November
Electric Fan 26% 5 1 1,300.00 1,300.00
DVD/VCD
Player
24% 5 1 2,700.00 2,700.00
Rice Cooker 20% 5 1 1,250.00 1,250.00
Iron 18% 5 1 850.00 850.00
Blender 12% 5 1 1,400.00 1,400.00

60
December
Electric Fan 26% 81 21 1,300.00 27,300.00
DVD/VCD
Player
24% 81 19 2,700.00 51,300.00
Rice Cooker 20% 81 16 1,250.00 20,000.00
Iron 18% 81 15 850.00 12,750.00
Blender 12% 81 10 1,400.00 14,000.00
Total Estimated Revenue (Year 1) 222,450.00
 The estimated annual revenue on year 1 for small appliances is Php.
222,450.00.
 On the 2nd year, the researcher assumed that the estimated sales of small
appliances may increase to 15% leading to annual revenue of Php. 255,817.50
because the customers who go to the proposed business venture will like the
services and the affordable prices of the appliances.
 On the 3rd year, the researcher assumed that the estimated sales of small
appliances may increase to 20% from the 2nd year estimated sales resulting to
revenue of Php. 306,981.00 because the business will offer an appliance loan.

61
To sum up, the total projected sales for Year 1 – Year 3 is presented as follows:
PROJECTED SALES
APPLIANCES Year 1 Year 2 Year 3
Major 1,788,650.00 2,056,947.50 2,468,337.00
Small 222,450.00 255,817.50 306,981.00
Total 2,011,100.00 2,312,765.00 2,775,318.00
Table 14. Total Projected Sales on Year 1 – Year 3 of the proposed
Table 14 shows the estimated annual revenue on year 1 is Php. 2,011,100.00.
On the 2nd year, the researcher assumed that the estimated sales may increase to 15%
leading to annual revenue of Php. 2,312,765.00 because the customers who go to the
proposed business venture will like the services and the affordable prices of the
appliances. On the 3rd year, the researcher assumed that the estimated sales may
increase to 20% from the 2nd year estimated sales resulting to revenue of Php.
2,775,318.00 because the business will offer an appliance loan.

62
Chapter VI
TECHNICAL AND OPERATIONAL FEASIBILITY
A. PRODUCT AND SERVICES DESCRIPTION
Based on the market survey, the most preferred appliances are:
MAJOR APPLIANCES SMALL APPLIANCES
1. Television
2. Refrigerator
3. Washing Machine
4. Computer
5. Air Conditioner
6. Electric Stove
7. Clothes Dryer
1. Electric Fan
2. DVD/ VCD Player
3. Rice Cooker
4. Iron
5. Blender
6. Water Dispenser
7. Oven Toaster
Table 15. Most preferred product based from the market survey
The store will operate daily from 8:00 am to 6:00 pm.
The friendly and knowledgeable staff would have a good customer service to the
market, which would make the market feel free to choose their preferred
appliances.
In the physical aspect of the business, the arrangement of the items will be
based on its classification so that customer can easily compare and contrast
each classification of appliance items.
There will be an information desk where all documentary transactions will be
accommodated.
The business would offer discounts for regular customers and for those who
purchase an items in cash – basis. It would also grant an extended warranty for a
period of six months to one year, depending on kind of appliances.

63
B. STORE LOCATION
Figure 9. The location map of the proposed appliances store
The proposed Home Appliances Store will be located at the corner of Juez
Andres and P. Enriquez St. Zone IV Poblacion Atimonan, Quezon.
The proposed location of the appliances store is owned by Mr. Manuel Veran.
The monthly rent for this proposed location is Php. 3,500.00
The size of the proposed store location is 100 square meter.
The proposed location is noticeable and accessible to the public because it is in
front of the Atimonan Public Market. Other establishments that are near the
proposed location are Mico’s Mart, Atimonan CATV Service, Atimonan Water
District and Balagtas Sports Complex.

64
C. PRODUCTION PROCESS
Figure 10. The processes involved in the proposed Appliance business

65
In Figure 10, the following steps are taken into the process:
1. The manager of the proposed business will contact the suppliers of the
products.
2. The suppliers will deliver the appliances needed by the proposed business.
3. The customer will go to appliances store.
4. The store assistant will welcome the customer and will ask for what he/ she
looks for.
a) If the product inquired by the customer is not available, the customer
may leave the store.
b) If the product inquired by the customer is available, the store assistant
will bring the customer to the area/section where the appliance that
the customer looks for is placed.
5. Here, the process of entertaining the customer will occur. The store assistant
would explain the characteristics of each appliance as asked by the customer.
6. The store assistant will also demonstrate on how to use the appliances
properly.
7. When the customer finally decided which appliances to buy, the store assistant
will direct the customer to the cashier (who also acts as secretary) for the
payment transactions.
a) When the customer’s preferred payment is cash basis, the cashier
would be in-charge of handling the payment transaction.
b) When the customer preferred on-account, there would be a
memorandum of agreement signed by the client and the manager of
the store.
8. While the payment transaction is on-going, the store assistant would pack the
item bought by the customer and then transfer it to the delivery boy.
9. When payment transaction is cleared, the appliance bought will be delivered
and installed at the customer’s home.
10. If the appliance items has run–out of stocks, the manager will contact the
supplier through telephone or internet e-mailing, for the delivery of the product.

66
D. STORE SIZE AND LAY–OUT
Figure 11. The Floor Plan of the proposed Home Appliances Store
The size of the store has an area of 100 square meters.
The store will operate daily from 8:00 am to 6:00 pm as preferred by the market.
The propose store location will undergo renovation for one (1) month.
D.1 RENOVATION COST
D.1.1. Raw Materials needed for the Renovation
The researcher asked the helped of Mr. Myro Cervantes to determine the
estimated cost for the renovation of the store. The results is as follows:
Glass Panel
GlassPanelGlassPanel
Computer
Entrance/Exit
Manager’s
Office
Cashierand
Information
Desk
C. Dryer
Microwave
12.5 m
8
m
O.Toaster
E.Stove
Dispenser
TVDVD
W.Machine Aircon
Iron Blender R. C. E. Fan Ref.

A feasibility study of putting up a home appliances store in atimonan,quezon

A feasibility study of putting up a home appliances store in atimonan,quezon

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