sSORSOGON STATE COLLEGE

BULAN CAMPUS

Bulan Sorsogon

IMELRON ACE

BOARDING HOUSE
(A Feasibility Study to be submitted as partial requirements of the course in Management

Consultancy)

Submitted by:

Aaron M. Gelilio Jr.

Submitted to:

Mr. Michael B. Bongalonta, CPA, MBA

Professor
CHAPTER I – Introduction

Nowadays, boarding houses are one of the important sources of affordable

accommodations. It has a growing demand due to the growing housing needs, especially for

students. It plays an important part of students especially to those who stay apart from their

family and prefer to choose continuing their education in college. For that reason, it is important

for the student to experience an actual separation to their loved ones because it will help them

realize that it is a good opportunity for them to live independently and for their own growth and

development as a matured individual.

Geographically, the Municipality of Bulan is one of the largest municipalities in the

province of Sorsogon. It is composed of 63 barangays which are mostly far southern and

northern coastal and barrios with long miles away from the town where commerce, industry, and

tertiary education colleges are in operations. Stated differently, one of the burdens that pursuing

college education is associated with heavy pocket transportation cost and other allowances

needed for going back and forth every school days.

This is what induced the demand for boarding houses in town. It has been a great idea to

address and bate the relative costs incurred by the students from barrios which will encourage

them to pursue college. The growing population of student enrollees is tantamount to a rising

demand for boarding houses which sounds as a great opportunity to earn. It is a great investment

to dwell for business inclined owners aiming to gain profitable returns from their properties.

Just like a typical business ventures, boarding house business is not easy as it sounds like.

Bulan is geographically a good spot to operate businesses like this. This is why a number of
boarding houses had eventually existed in almost all corners of the area, all competing in terms

of affordability, convenience, location and accommodation.

This study is conducted to prove that one of the most important factors in handling

boarding house business is the market share. Targeting a specific market of consumers is a

doubtless key for this business to prosper. “IMELRON ACE Boarding House” will be a unique

house to board in because it targets only female college students from the neighbouring northern

coastal barangays of Danao and Namo of Bulan, Sorsogon. This will also cover female college

students from Biton, Magallanes. This provides them a place where they can continue their

bonds and together they will experience living independently to develop their attitudes into

responsible deeds of young professional adults, preparing to life ahead of them after college.

CHAPTER II – Market Study

PRODUCT

` The proposed business will be called as “IMELRON ACE Boarding House,” a special

boarding house open for female college students only of the following barangays such as of

Namo and Danao Bulan, Sorsogon as well as Biton Magallanes, Sorsogon who are studying in

different colleges here in the Municipality of Bulan. This type of business is a proprietorship

since this will be financed solely by the proponent. It will be located at L. De Castro St. Zone 8

Bulan, Sorsogon.

TARGET MARKET

The target customers of the proposed project are the female college students of the three

barangays from the northern coastal. These are the students who can be classified as “boarders.”
They are in need looking for a boarding house with complete facilities and service at the most

affordable price/rental fee.

DEMAND ANALYSIS

Based on the proponent’s actual inquiry and personal interview with some of the target

customers, data were gathered pertaining to the number of college students and the number of

boarders out of which from the three barangays. There is a total of 28 female college students

from Danao and 18 students of which are boarders. Female college students from Namo amounts

to 15 students, however 12 students are boarders. 30 students are from Biton Magallanes and all

of them are boarders. To sum up, there is a total of 73 female college students from the

mentioned barangays and out of which are 60 boarders.

SUPPLY ANALYSIS

As operating, there are many boarding houses here in the Municipality of Bulan. Some of

them accommodate the other target market. However, with the existence of the proposed project,

they will possibly be accommodated. As determined, there is a total of 73 female college student

in which 60 boarders are from the three barangays. They will be supplied by the proposed

business. The capacity of this boarding house is 15 rooms, the 14 rooms are intended for the

boarders and the remaining is for the owner. Each room will accommodate 4 persons, that means

the boarding house service will be 56 students.

SUPPLY AND DEMAND ANALYSIS

IMELRON ACE Boarding House will be operating within the forces of both demand and

supply. As determined above, there is a demand of 60 students for a boarding house. However,
the actual capacity of the proposed business will accommodate 56 students and this will be

supplied by the business. Stately, there is a gap of four student but this is immaterial since the

demand is greater than the supply force.

ANALYSIS OF COMPETITION

Many boarding houses are also in operations here in Bulan. Some are built near the

schools of different colleges. This will serve as the main competitors of the proposed project.

They also offer complete facilities and good service to their customers. However, in terms of

pricing/rental fees, variation occurs. Some of the boarding houses have higher rental fees ranging

from P600 to P950 per month. This will be one of the advantages of this project since this

boarding house will be rendering good facilities and service at the most affordable rates of fee.

This project will also provide quality service that will care most for the comfortable and peace

living to study of the students.

SWOT ANALYSIS

In conducting the proposed business, SWOT Analysis must be considered. This pertains

to the strength, weakness, opportunities and threats of the study.

STRENGTH

1. The proposed business will provide sufficient facilities and quality service at the most

affordable rental fee. IMELRON ACE aims to offer boarding services at the lower

rates than those offered by other boarding house businesses.

2. The project will be having a caretaker to ensure cleanliness, peacefulness for students

and security for their comfortable area for studying.

WEAKNESS

1. The location area of the project is prone to flood since it will be established in a low

land area.

2. The proposed project will be less ventilated compared with other boarding houses that

offer luxurious facilities.

OPPORTUNITIES

1. The business will have the opportunity to accommodate students or fresh graduates of

high school from the three barangays.

2. The business will continue its operation on a going concern basis since IMELRON

ACE Boarding House will be having the advantage and guaranty to accommodate

other customers from the three barangays in the succeeding years.

THREATS

1. The existence of competition with other boarding houses may affect the proposed

business operation.

2. The existence of relative-owned houses which students will stay during their college

years.

MARKET POSITIONING STRATEGY

IMELRON ACE Boarding House will be rendering services at the most affordable rental

fee. This will be positioned at the place where the project will be little nearer to schools of the

target customers. The proponent provides an excellent service at the optimum level to the

customers. In terms of promoting the business, the proponent will conduct an actual interview
with the students. The proponent will also make a notice to the three barangays for its

advertisement. This will provide sufficient facilities that will surely satisfy the customers.

PRICING STRATEGY

To determine the amount of rental fee per month, the proponent will monitor those of the

competitors’ since there is a variation in terms of pricing or setting the monthly fee. The business

will offer lower rental fees than those offered by other boarding house businesses, since these

students are known and neighbours of the proponent.

PROMOTION

In order to promote the business, the proponent is going to put up notice of such proposed

business to the three barangays. This will be posted to each barangay and will contain

information about the project, its location, facilities offered and the proponent’s contact number

in case of some inquiries, etc. The proponent will also conduct actual visit to the three barangays

to inform the students and obtain first hand information.

DISTRIBUTION CHANNEL

The direct distribution channel is applied to IMELRON ACE Boarding House since

service is its main product. This will be directly offered to the female college students of the

mentioned barangays. This can be illustrated at this figure:

CHAPTER III – Technical Study

PROJECT LAYOUT

Ground floor
IMELRON ACE Boarding House will have an area of 500 m 2 and located at L. De Castro St.

Zone 8 Bulan, Sorsogon. This boarding house will contain two floors. On the ground floor, are

the kitchen area, receiving area, 8 boarding rooms including the owner’s room, two comfort

rooms, and space allotted for laundry.

PROCESS DESCRIPTION

The capacity of this boarding house is 14 boarding rooms and will accommodate four

persons each room. That means a total of 56 female college students are to be provided with such

service. The monthly rental fee is P600 and will cover finances as to utility including the lights,

water, etc. There is no policy as to prepayments of rental fee. The boarders will be paying

monthly and shall be collected every first or second week of the month.

EQUIPMENT AND MATERIALS

IMELRON ACE Boarding House will provide complete equipment and materials for the

use by the boarders. In each room, the business will provide two double decks and two wooden

cabinets. Every floor will be provided with two brooms and dust pans as well as two trash cans

to maintain cleanliness. At the ground floor where kitchen area is located, the business will

provide 5 stoves.

QUALITY CONTROL

The proposed business will also establish rules and regulation as to the control to ensure

orderliness and cleanliness within the area. This will be also safeguarded by a caretaker to serve

for the security and maintenance of its facilities.

 IMELRON ACE
BOARDING HOUSE

RENTAL FEES AS PAYMENT

SERVICE

FEMALE COLLEGE STUDENTS

FROM THE THREE BARANGAYS

DISTRIBUTION CHANNEL
 PROJECT LAYOUT

SECOND FLOOR
ROOM 1

ROOM 2

ROOM 3

ROOM 4

ROOM 5

COMFORT ROOM 1
ROOM 6

ROOM 7 COMFORT ROOM 2