CHAPTER II
Marketing Aspect
Marketing is the process of observing, understanding, stimulating, and
satisfying the customer needs, wants, and expectations through the goods
and services of a specially selected target market. This includes advertising,
selling, and delivering to consumers or other businesses.
Objectives of the Study
The proponent’s project feasibility aims to determine the viability of
establishing banana stem chips at Taal, Batangas. To clearly understand the
study conducted by the proponent, the following objectives have been set.
1. To determine the target market for banana stem chips.
2. To determine the demand and supply for the proposed product.
3. To identify what is to be implemented in the promotional activities and
marketing strategies for the proposed product.
4. To know and shape the positioning of the products within the market.
5. To determine the selling price which the consumers are willing to pay
for the product by conducting market surveys.
Market Description
The market for Crunch-a-Banana includes individuals who are
increasingly shifting toward healthier and more sustainable snack options.
This segment primarily consists of students, young professionals, fitness
enthusiasts, and individuals who are mindful of their health and lifestyle
choices. Most of them fall within the age range of 15 to 45 years old and live
in or around the municipality of Taal, Batangas.
Recent consumer trends show a growing demand for snacks that are
not only convenient but also nutritious and affordable. Crunch-a-Banana
answers this demand by offering a product made from banana stems, which
are rich in fiber and often underutilized. Its affordability, nutritional value, and
eco-friendly appeal make it attractive to a wide range of consumers,
especially those who value plant-based, locally sourced products. The
product’s uniqueness also opens opportunities for it to stand out in local
markets and eventually expand to larger communities.
Name of the Business
The proposed product will be named “Crunch-a-Banana”. The name
Crunch-a-Banana was chosen because it’s memorable and descriptive. The
name clearly conveys the major characteristic of the snack: its satisfying
crunch. The key word in the name is “banana” so consumers know exactly
what they’re getting. The name is very simple and easy to pronounce. It has a
more appealing sound.
Goal of the Business
The goal of Crunch-a-Banana is to provide a nutritious, affordable, and
eco-friendly snack alternative by banana stems. Through this approach, the
business aims to promote health and sustainable living within the community.
In the initial phase of operations, the goal is to successfully launch the product
in Taal, Batangas, establish a presence in schools, local markets, and online
platforms. Gathering customer feedback is also a priority to improve product
taste, packaging design, and promotional strategies.
Over time, Crunch-a-Banana aims to expand its distribution coverage
to other towns and cities, allowing more consumers to benefit from its
nutritious and eco-friendly product. The business also plans to introduce new
product variants such as spicy, sweet, and garlic flavors to cater to diverse
consumer preferences. It aims to become a well-known local brand
recognized for producing eco-friendly and healthy snacks. Beyond business
growth, Crunch-a-Banana aspires to contribute to reducing agricultural waste.
Location of the Business
It was agreed by the partners involved that the production will take
place on a public market at Taal, Batangas. The place is perfect because it is
located on the target market itself, the Taal town proper. The location is also
near to the sources of the raw materials needed in the production process.
Figure 1
Location of the Business
Brief Description of the Business
Stemtastic Snack Partnership is a food manufacturing business based
in Taal, Batangas, dedicated to producing high-quality, healthy snacks made
from banana stems. The main product, Crunch-a-Banana, is a unique and
innovative snack made by turning banana stems into crispy, delicious chips.
This product offers a nutritious alternative to traditional chips, appealing to
health-conscious consumers and those looking for sustainable, locally-
sourced snack options.
The business will operate under a commitment to sustainability, using
banana stems that are often discarded during the banana farming process,
thus reducing waste and creating a valuable by-product. The company will
leverage modern production techniques to ensure the highest quality and
consistency in every batch of Crunch-a-Banana chips.
Mission
Crunch-a-banana mission is to create a delicious and sustainable
snack that makes people happy. The product is designed to offer a healthy
option that satisfies both taste preferences and budget considerations.
Vision
Vision is to serve the best ingredients for customers and to know with
this product with hard work and dedication to our business also to become the
customer’s first choices.
Values
Quality - we believe in making the best banana stem chips possible,
using fresh ingredients and adhering to high standards.
Innovation - we’re always looking for new ways to improve our product.
Sustainability - we care about the environment and strive to minimize
our impact by reducing food waste and promoting a circular economy.
Research Methodology
Methodology is one part of the market study, as it outlines the
techniques and processes the proponents will use to gather information and
assess the viability of the Banana Stem Chips product. The study will involve
conducting surveys with both consumers and retailers to understand the
demand, supply, and potential market acceptance of the proposed product.
The initial survey will aim to collect data on the current market's
perception of similar products and assess consumer interest in the proposed
Banana Stem Chips. This will help in understanding how the new product
compares with existing snack options and gauge consumer willingness to try
a healthier, environmentally friendly alternative. The proponents will conduct a
consumer and market preference survey specifically targeting potential
consumers and retailers. The survey will explore the acceptance of Banana
Stem Chips, the factors influencing consumer purchasing decisions, and the
anticipated demand for this type of snack. Key questions will focus on health
consciousness, sustainability preferences, and snack choices.
Product Description
Banana stem chips is a yummy and healthy snack produced from the
normally discarded banana plant stem. The stems are gently sliced and
normally deep-fried until crisp. This process transforms the banana stem into
a delicious and crispy snack. The finished chips have unusual taste and
texture unlike other well-known snacks. Helping to keep the food moving are
great sources of dietary fiber. Banana stem chips contain nutrients in addition
to calories. A good snack choice, banana stem chips help to lower food waste
by repurposing a normally thrown away part of the banana plant. Their
flexibility clearly makes them a perfect supplement to any snack selection.
The savory taste and crispy consistency would please everyone who tried it.
Other processed snacks that are high in bad fats and sodium can be replaced
by the chips. Their distinctive taste provides a nice break from usual snacks.
All things considered, banana stem chips are a delicious, nutritious, and
environmentally friendly snack option.
Uses of the Product
Crunch-a-Banana is intended to be consumed as a snack food that can
be enjoyed anytime whether at home, school, the workplace, or on the go. It
serves as a healthier alternative to traditional chips and junk food, making it
ideal for people who want to reduce their intake of oily or artificial snacks. Its
dry, crunchy texture and savory flavor profile make it a satisfying companion
during breaks, study sessions, or travel.
It can be used as a party snack. Because it is made from natural
banana stems and contains essential nutrients, Crunch-a-Banana can also
support healthier snacking habits in daily routines whether for children, teens,
or adults.
User of the Product
The users of Crunch-a-Banana are individuals aged 15 to 45 years old
who are looking for nutritious, affordable, and eco-friendly snack options. This
includes students who often need convenient snacks, young professionals
seeking quick but healthy food during busy workdays, and health-conscious
individuals such as vegetarians who are mindful of what they eat.
The product appeals to environmentally aware consumers who support
sustainability by choosing snacks made from banana stems. These users
value both the taste and health benefits of the product, making Crunch-a-
banana ideal for diverse market that appreciates unique, natural and
sustainable snack alternatives.
Quality Dimensions
Crunch-a-Banana undergoes thorough quality control measures to
ensure a consistently superior product. The freshness of the banana stems is
essential, impacting the final flavor and texture. We carefully select stems at
their peak ripeness for optimal taste and crispness. Thin slicing ensures even
dehydration and prevents overly chewy chips. Regular taste tests assess
flavor profiles, identifying any inconsistencies. Color and appearance of the
chips are monitored to maintain a consistent golden-brown color. Packaging is
designed to protect the chips from moisture and maintain freshness. Shelf-life
testing determines optimal storage conditions and packaging efficacy. The
proponents regularly inspect equipment to prevent contamination and
maintain hygiene standards. Commitment to quality is reflected in the
sourcing sustainable banana stems. Customer feedback is invaluable, guiding
improvements and maintaining high standards. Continuous monitoring and
adjustments ensure consistent quality across all batches. The overall goal is
to deliver a consistently delicious and high-quality snack.
Geographical Area of Distribution
Identifying the target market helps the business determine the end-
users who are most likely to purchase the proposed product. To establish a
strong local presence, Crunch-a-Banana will initially be distributed in Taal,
Batangas, which provides easy access to both local consumers and banana
plantations, ensuring a steady supply of raw materials.
Channel of Distribution
Distribution is the method of getting your product into your target
markets. It is the chain through which a good or service passes until it
reaches the targeted end consumer. In connection with this, the proponents
decided to use direct marketing channels of distribution. This means the
manufacturer will directly distribute the product to the retailers and
consumers, bypassing wholesalers. This method was chosen as it allows for
greater control over the distribution process, establishes closer relationships
with customers.
Producer Retailer Consumer
Figure 2
Channel of Distribution
Demand and Supply Analysis
Demand is the want, need or desire for a product that is backed up by
an ability to pay. It is determined by a number of factors including income,
taste and the price of complementary and substitute goods. It is of great
importance for a company to determine the willingness and ability of an
individual to avail the product or service it offers.
Demand arises from wants supported by the purchasing power of
buyers or consumers by deciding whether or not to buy a product. In relation
to this, it is important for a business firm to know the wants and ability of the
consumers to avail the product and services being presented. It is also
necessary for them to know the buying behavior of consumers and the factors
affecting it.
Supply is the total amount of goods and services available for
purchase. Every company is a supplier on its own. It supplies different goods
and services based on the demand of the target market. Products that are
available in the market must satisfy the need and wants of the buyers in terms
of its quality and price so that the customers will continuously purchase the
product and for every customer that will satisfy, its demand will also increase,
thus generating an impact on the supply of goods.
Supply is essential in every market. Without adequate supply no
certain product can survive the market. Analyzing the supply situation will
determine the availability of a possible market for the establishment. This was
based on the sample survey that was conducted by the proponents.
Table 1
Stemtastic Snack Partnership
Historical Demand
Name of Store 2020 2021 2022 2023 2024
Verginia’s Store 7,800 8,840 9,360 10,400 11,440
Jessie’s Store 3,120 3,380 3,640 3,900 4,170
Jenny’s Store 4,680 6,300 7,800 9,400 10,900
Melanie’s Store 7,300 7,500 8,100 8,500 8,600
Nora’s Store 8,100 8,700 9,600 10,400 11,200
Mila’s Store 6,300 7,400 8,350 9,300 10,500
Total 37,300 42,120 46,850 51,900 56,810
Table 1 shows the historical demand for Crunch-a-banana for the year
2020-2024. The proponents were able to construct the table by the use of
interviews. Based on the answer of the 6 respondents, the demand for the
product in the year 2020 is 37,300 and it gradually increased to 56,810 in
2024.
Table 2
Stemtastic Snack Partnership
Projected Value of Demand
YEAR A B X YC
2026 32,356 4,880 6 223,416
2027 32,356 4,880 7 260,652
2028 32,356 4,880 8 297,888
2029 32,356 4,880 9 335,124
2030 32,356 4,880 10 372,360
The projected demand was computed using the following formulas:
n Σxy – ( Σx)(Σy) Σy bΣx
b= n Σx ²−(Σx) ²
a= n - n
5 (753,740 )−( 15 ) (234,980) 234,980 4,880(15)
= 2 = −
5 ( 55 )−(15) 5 5
3,768,700−3,524,700
= = 46,996-14,640
275−225
244,000
= = 32,356
50
= 4,880
YC= A+B(х)
= 32,356 + 4,880(6) = 223,416
= 32,356 + 4,880(7) = 260,652
= 32,356 + 4,880(8) = 297,888
= 32,356 + 4,880(9) = 335,124
= 32,356 + 4,880(10) = 372,360
The table 2 shows the projected value of demand for Crunch-a-banana
for the next five years with the value of 223,416 in 2026; 260,652 in 2027;
297,888 in 2028; 335,124 in 2029 and 372,360 in 2030.
Table 3
Stemtastic Snack Partnership
Historical Supply
Name of Store 2020 2021 2022 2023 2024
Virginia’s Store 4,400 4,600 5,200 5,900 6,700
Jessie’s Store 3,100 4,680 5,900 6,200 6,500
Jenny’s Store 3,650 3,700 3,850 4,100 4,500
Melanie’s Store 7,200 7,400 7,650 7,900 8,100
Nora’s Store 7,300 8,050 8,800 8,900 9,150
Mila’s Store 2,600 3,500 4,800 5,200 7,800
Total 28,250 31,930 36,200 38,200 42,750
Table 3 shows the historical supply for Crunch-a-banana for the year
2020-2024. The proponents were able to construct the table by the use of
interviews. Based on the answer of the 6 respondents, the sales for the
product in the year 2020 is 28,250 and it gradually increased to 42,750 in
2024.
Table 4
Stemtastic Snack Partnership
Projected Supply
YEAR A B X YC
2026 24,885 3,527 6 170,472
2027 24,885 3,527 7 198,884
2028 24,885 3,527 8 227,296
2029 24,885 3,527 9 255,708
2030 24,885 3,527 10 284,120
n Σxy – ( Σx)(Σy) Σy bΣx
b= n Σx ²−(Σx) ²
a= n - n
5 (567,260 )−( 15 ) (177,330)
= 2 =
5 ( 55 )−(15)
177,330 3,527 (15)
−
5 5
2,836,300−2,659,950
= = 35,466-10,581
275−225
176,350
= = 24,885
50
= 3,527
YC= A+B(x)
= 24,885 + 3,527(6) = 170,472
= 24,885 + 3,527(7) = 198,884
= 24,885 + 3,527(8) = 227,296
= 24,885 + 3,527(9) = 255, 708
= 24,885 + 3,527(10) = 284,120
The table 4 shows the projected value of supply for Crunch-a-banana
for the next five years with the value of 170,472 in 2026; 198,884 in 2027;
227,296 in 2028; 255,708 in 2029 and 284,120 in 2030.
Demand and Supply Gap
Demand and supply gap analysis is one determinant to ascertain if
there is demand for the product and business contemplating to produce and
meet this demand of the market. This is an important part of the study
because this will help the researchers to know if it is still appropriate to
continue or pursue the proposed business in the market.
To be able to determine the projected demand and supply for the
product the straight-line method was used.
Table 5
Stemtastic Snack Partnership
Demand and Supply Gap
N 2026 2027 2028 2029 2030
Projected Demand 223,416 260,652 297,888 335,124 372,360
Projected Supply 170,472 198,884 227,296 255,708 284,120
Projected Demand
Gap
52,944 61,768 70,592 79,416 88,240
Supply from my
business (70%)
37,061 43,238 49,414 55,591 61,768
Supply from other
businesses (30%)
15,883 18,530 21,178 23,825 26,472
The table highlights a consistently increasing gap between demand
and supply, with the user's business expected to cover 70% of the supply and
other businesses covering the remaining 30%. This analysis points to a need
for increased production or additional suppliers to meet future demand.
Market Share
The market share is computed by dividing the proposed annual
production by projected demand. It is the percentage of an industry or
market's total sales that is earned by a particular company over a specified
time period. Market share is calculated by taking the company's sales over the
period and dividing it by the total sales of the industry over the same period
This metric is used to give a general idea of the size of a company to its
market and its competitors.
Marketing Plan
The marketing plan for Crunch-a-banana outlines an overall approach
to introducing and growing the product in the market. The marketing plan that
the proponents will use is the marketing mix which includes the 4P’s such as
promotion, price, place of distribution and product in order to analyze different
areas of the market.
The advantage of Crunch-a-banana is that it is more nutritious than
other types of chips. It has a unique feature. It is also good for all, especially
for those who are health conscious.
The price of the product depends upon the raw materials or ingredients
that are involved in the production process. The price of the product is not
very far from the price of existing chips. It is also affordable to the target
market.
The place of the proposed business is at Taal, Batangas which is one
of the towns that has a competitive market. The place of the store is easy to
locate and along the way.
To promote Crunch-a-banana, the proponents will use flyers and social
media platforms and free taste to boost consumer awareness and demand.
Marketing Strategies
One of the important factors that the proponents should consider is the
marketing strategy. Marketing strategy is a strategy that integrates an
organization’s marketing goals into a cohesive whole. Ideally drawn from
market research, it focuses on the ideal product mix to achieve maximum
profit potential. The marketing strategy is set out in a marketing plan.
The product strategy emphasizes differentiation by highlighting its nutritional
value, specifically its high fiber and low-calorie content, making it an attractive
option for health-conscious consumers. The pricing strategy focuses on
keeping the product affordable and competitive, positioned slightly above
regular chips but offering greater nutritional value. Promotion strategies will
rely heavily on social media platforms such as Facebook and TikTok, user-
generated content to build brand awareness. Free tasting, sampling at local
markets, and distributing flyers in high-traffic areas like schools and local
markets will further boost consumer interest. In terms of distribution, the
product will initially be sold directly in Taal, Batangas, targeting local markets,
school canteens and online platforms.
Customer retention strategies will include offering discounts or
exclusive offers to repeat customers, and encouraging feedback to improve
the product. By combining these strategies, Crunch-a-Banana aims to build a
strong presence in the market, attract a loyal customer base.
Target Market
The target market for banana stem chips primarily includes health-
conscious consumers, urban millennials, and individuals seeking natural,
sustainable snack alternatives. This group is increasingly aware of the
benefits of high-fiber, low-calorie foods and is open to trying innovative,
functional snacks. The rising trend of veganism, clean eating, and sustainable
living creates an opportunity to market banana stem chips as an eco-friendly,
zero-waste product, which resonates with environmentally aware consumers.
From a feasibility standpoint, this target market shows strong potential
for growth, particularly in urban areas where premium health products are
more accepted. The product’s uniqueness, combined with proper branding
and education around its health benefits, can differentiate it in a competitive
snack market. However, challenges may include consumer unfamiliarity with
banana stems as a food source and the need for product trials to build trust
and taste preference. If these challenges are addressed through effective
marketing, attractive packaging, and strategic distribution via online platforms,
organic stores, and fitness centers, the product can successfully compete in
the growing health snack segment.
Advertising Materials
The Stemtastic Snack Partnership will have ways of advertising such
as giving away flyers at the same time online advertising through social media
which include Facebook. Giving away flyers to target customers will help the
company be assured about the brand awareness of the target customers with
or without social media accounts. Posting to social media, on the other hand,
will help the business promote themselves for future expansion, brand
awareness, and cost efficiency since creating social media accounts is free.
Figure 3
Flyers
Figure 4
Facebook
Business Logo
The "Crunch-A-Banana" logo was designed to highlight the uniqueness
of banana stem chips while making the brand visually appealing and
memorable. The central image showcases the actual product, allowing
customers to immediately recognize the texture and crispiness of the chips.
The circular frame gives the design a professional, well-structured look, while
the pink and green outline adds a touch of vibrancy, making it eye-catching.
The green banana leaves symbolize freshness and natural ingredients,
reinforcing the idea that the product is organic and plant-based. The
combination of these elements makes the logo not only informative but also
attractive to health-conscious consumers looking for innovative snack options.
The typography and banner placement were carefully chosen to ensure
clear branding. The ribbon-style banner adds a classic and trustworthy feel,
giving the product a premium look. The use of warm and earthy tones creates
a balanced visual identity that appeals to both modern and traditional snack
lovers. Overall, the design effectively conveys the brand’s message of offering
a crunchy, delicious, and healthy banana-based snack in a fun and appealing
way.
Figure 5
Business Logo
Business Card
This business card represents "Crunch-a-banana," a brand
specializing in banana stem chips. This business card serves as a
professional tool to provide quick access to the company’s key contact
information.
It includes the name of the manager, contact number, the business
location, and the Facebook Page link which serves as the business’s online
platform. Utilizing a Facebook Page instead of a traditional website is a cost-
effective and accessible option for maintaining customer engagement and
digital marketing. The green color and the logo design are intentionally
aligned with the product's branding, highlighting the natural, fresh, and eco-
friendly concept behind the banana stem chips.
Figure 6
Business Card
Business Tagline
“First Bite, Crunch like no other”, is a tagline that emphasizes
the unique and satisfying crunch of the product the moment a customer takes
their first bite. It suggests that the texture and experience offered by the snack
are unmatched by any other brand, making it stand out in a competitive
market. The phrase appeals to curiosity and encourages consumers to try the
product themselves to experience something new and delightfully crunchy.
Promotions
Promotion aims for the sale of merchandising through publicity,
advertising, and discounting. The proponents want to increase sales by using
a combination of publicity, advertising and discounting to generate interest in
the product. Our marketing strategy will educate, persuade and remind
consumers of this exciting new product. Crunch-a-Banana is going to
introduce a great discount offer. For anyone who buy four packs of Crunch-a-
Banana, they are entitled to a 10% discount on the combined purchase. This
gives consumers significant value and is highly motivating to purchase more.
These promotions will help us increase sales to build a loyal following for
Crunch-a-Banana.
Figure 7
Promotions
Product Packaging
The packaging of Crunch-a-Banana Banana Stem Chips features a
green-themed, transparent, and resealable plastic pouch. The design allows
customers to see the golden-brown chips inside, highlighting their crisp
texture and natural appearance. The resealable feature helps keep the chips
fresh for longer perfect for on-the-go snacking or enjoying throughout the day.
On the front of the pouch, the Crunch-a-Banana brand name and logo
are prominently displayed, along with an illustration of the banana stem chips
and natural elements such as banana leaves. The combination of green,
yellow, and brown colors reflects the product’s natural, nutritious, and
innovative qualities. This packaging is designed to attract health-conscious
consumers looking for a wholesome and unique alternative to traditional
chips.
Figure 8
Packaging
Pricing
Pricing usually depends on the firm's average costs and on the
customer's perceived value of the product. Penetration pricing will be used as
the initial pricing strategy for the proposed product. It is a pricing strategy
used to attract consumers by offering a lower price during the initial launch of
the product. The estimated selling price is 25.00 per pack.
