1/A thesis proposal submitted to the Faculty of the Department of Management. College of Economics. Management and Development Studies. Cavite State University. Indang. Cavite. in partial fulfilment of the demands for graduation with the grade of Bachelor of Science in Business Management. major in Business Economics. Prepared under the supervising of Dr. Nelia C. Cresino. INTRODUCTION Soft drinks can follow their history back to the mineral H2O found in natural springs. Bathing in natural springs has long been considered a healthy thing to make and mineral H2O is said to hold healing powers.
Scientists shortly discovered that gas carbonium or C dioxide is behind the bubbles in natural mineral H2O. Soft drinks by its term are drinks that are non alcoholic drinks. Carbonated soft drinks are besides referred to as sodium carbonate ( About. com. 2011 ) . What is particular about soft drinks is that it is really easy to happen and that all people could avail it. It is truly good in fulfilling thirst of an person.
It gives a reviewing feeling particularly on a really hot conditions. Harmonizing to the research conducted by the Gale Group Farmington Hills Michigan ( 2008 ) . the soft drink industry began in the mid-1880s. During the early old ages. soft drinks were sold merely in shops that could supply fountain service. Increasing distribution was tied to constructing extra sirup fabrication workss. The first marketed soft drinks appeared in the seventeenth century as a mixture of H2O and lemon juice sweetened with honey. In 1676 the Compagnie de Limonadiers was formed in Paris and granted a monopoly for the sale of its merchandises.
Sellers carried armored combat vehicles on their dorsums from which they dispensed cups of lemonade. Sari-sari shops remains the largest distribution channel in 2011. little vicinity retail mercantile establishments called sari-sari shops accounted for the largest proportion of gross revenues in soft drinks. Located in vicinities. these mercantile establishments make merchandises easy accessible to lower- and middle-income consumers. particularly in provincial countries where modern channels such as convenience shops and supermarkets are located in retail centres that are far from residential countries. It should besides be noted that Filipino consumers typically do non purchase in majority and shop soft drinks merchandises at place. Therefore. sari-sari shops become a convenient channel for purchasing soft drinks in the favorite smaller and returnable glass packaging ( euromonitor. 2011 ) . For franchise one will necessitate a batch of collateral. The sum is based on the country of distribution. Soft drink franchise is profitable. but one should hold to watch out for a batch of things where one can lose money like breakage. larceny. etc. The trader should be 200 % hands-on because of the hard currency and tonss of recognition that will be handled. Based on the trial on the gross revenues office of Coca-cola. Pepsi-cola every bit good as Royal Crown in Cavite there are 52 soft drinks traders in the state. Soft imbibe franchises every bit good as other concerns contribute to the betterment in the economic status of people in a certain country or field and the community in general. Therefore. the profitableness of its operation is deserving analyzing. Statement of the Problem Specifically. the survey seeks to reply the undermentioned inquiries: 1. What are the socio economic features of soft drink traders in Cavite? 2. What is the income of soft drinks traders in Cavite? 3. What is the profitableness of soft drinks franchise concern? 4. What are the jobs encountered in soft drinks franchise? Conceptual Framework. The model of the survey which is composed of the socio-economic features as the input. the franchise as the procedure and the net income as the end product is shown in Figure 1. The socio-economic features of the soft drink traders such as age. gender and educational background will be the used as input in runing a franchise concern. The end product which is the net income of the concern will be based from the input which will be processed in runing the concern to bring forth the net income. Figure 1. Conceptual model of the profitableness of the soft drinks franchise in Cavite. Aims of the Study Generally. the survey will be undertaken to find the profitableness of soft drinks franchise in Cavite. Specifically. it aims to: 1. describe the socio-economic features of soft drink traders in Cavite ; 2. determine the income of soft drinks traders in Cavite ; 3. determine the profitableness of soft drinks franchise in Cavite ; 4. identify the jobs encountered in soft drink franchise concern. Importance of the Study The prospective investors can utilize this information as footing in make up one’s minding to come in into the soft drinks franchise concern. This will supply a good beginning of informations for their feasibleness survey. The pupil and research workers can utilize the consequence of the survey as mention to hold a deeper survey about soft drink franchise in Cavite and other related researches. From the consequence of the survey. the soft drinks trader will hold an thought of the current state of affairs of other traders and compare their pricing schemes with the other soft drink traders in Cavite. Scope and Limitation of the Study This survey will be conducted to analyse the profitableness of soft drink franchise in Cavite. It will be conducted from October to December 2012. The respondents will be the proprietors. directors. or owner-managers of soft drink franchise concern. The survey focused chiefly on the socio-economic features of the respondents. income of soft drink traders and jobs encountered in soft drinks franchise concern. Lone traders of soft drinks such as Coca-cola. Pepsi- Cola and Royal Crown will be interviewed. Accounting minutess for one twelvemonth period. 2011 will be included in the analysis of income. The information that will be used in the survey will be limited to what the respondents will supply during the interview. Operational Definition of Footings. Cost of sale refers to an disbursal incurred by soft drinks traders which is obtained by multiplying the monthly gross revenues volume by unit cost. Gross income refers to the monthly sum hard currency sum received by soft drink traders from the concern. Net net income refers to the entire hard currency sum left to the soft drink trader after subtracting all relevant disbursals from the entire gross revenues. Profitableness is the ability of soft drink traders to better the fiscal place of the concern. The ratios that will be used are: Gross Net income Margin. Operating Net income Margin and Net Net income Margin. Gross saless volume refers to the monthly measure of soft drink sold by soft drink traders. Soft drinks is the chief merchandise traded by the soft drink traders to their consumers. This include carbonated drinks such as Coca-cola. Pepsi- Cola and Royal Crown. Soft drinks traders refer to the individual who sells soft drinks for hard currency. Entire cost/ disbursal refers to all disbursals incurred by soft drink traders in a month. Entire gross revenues refers to the entire sum of soft drinks sold in a month. It is obtained by multiplying the unit merchandising monetary value by the monthly gross revenues volume. METHODOLOGY. This chapter will discourse the research process to be used in the survey. This will be presented in the undermentioned subdivision: 1. ) research design. 2. ) beginning of informations. 3. ) informations assemblage process. 4. ) research instrument. 5. ) method of analysis. Research Design The cross- sectional study research design will be used in analyzing the profitableness of soft drink franchise in Cavite. This design will ease happening the replies to inquiries on socio-economic features of soft drink traders. income of soft drink traders. profitableness of soft drinks franchise and the jobs encountered in soft drink franchise concern. In the cross sectional study design. informations will be collected at one point in clip from October to December 2012 from a sample selected from a population at the peculiar clip. Beginnings of Data The respondents for this survey will be the soft drinks traders in Cavite. A list of soft drink traders in every town was requested from the gross revenues office of the different companies such as Coca-cola. Pepsi- Cola and Royal Crown Cola in Cavite. viz. : Alfonso. Amadeo. Bacoor. Carmona. Cavite City. Dasmarinas City. Gen. Trias. Imus. Indang. Kawit. Maragondon Naic. Noveleta. Rosario. Tagaytay. Tanza and Trece Martirez City. Merely towns that have soft drink traders will be included in the survey. Data Gathering Procedure The information to be used in the survey will be gathered through interviews with the assistance of questionnaires. Trial to the different towns of Cavite will be done to find the figure of soft drinks traders. Table 1 shows the distribution of respondents by merchandises and by towns. A sum of 52 respondents will be included in the survey. Table 1. Distribution of respondents by merchandises and by towns. PRODUCT/TOWNFREQUENCYPERCENTAGE Pepsi- Cola Carmona 2 4 Bacoor 3 6 Dasmarinas 3 6 G. M. A. 1 2 Silang 3 6 Coca-cola Amadeo 1 2 Bacoor 4 7 Cavite City 1 2 Dasmarinas 3 6 Gen. Trias 2 4 Imus 2 4 Indang 1 2 Kawit 1 2 Maragondon 1 2 Naic 1 2 Rosario 3 6 Tagaytay 1 2 Tanza 2 2 Ternate 1 4 Trece 1 2 Royal Crown Cola Alfonso 1 2 Bacoor 2 4 Carmona 2 4 Cavite metropolis 1 2 Dasmarinas 1 2 Gen. Trias 1 2 Imus 3 6 Noveleta 1 2 Silang 1 2 Tanza 1 4 Martirez 1 2 Entire 52 100 Percent Research Instrument The questionnaire will be used as the chief assemblage tool of informations. The questionnaire is divided into 5 parts. The first portion is about the general information of the respondents. The 2nd portion will concentrate on the signifier of concern organisation. and the 3rd portion will focus on on the patterns and schemes in doing net income. The 4th and the last portion include the concern income and outgos of the soft drink traders and the jobs encountered in soft drink franchise. Method of Analysis Frequency count and per centum will be used to depict the socio-economic features of soft drink traders. factors impacting the income of soft drink traders and jobs encountered by soft drinks traders. Fiscal tool such as profitableness ratios will be used to mensurate the earning capacity of the concern. The ratios that will be used are: Gross Net income Margin. Operating Net income Margin and Net Net income Margin. Gross net income border. Measures the per centum of each peso gross revenues staying after the house has paid for its goods. The higher the gross net income border. the better. the lower the comparative cost of merchandize sale. Gross net income border = Gross net income Gross saless Operating net income border. It determines the per centum of each peso gross revenues that is represented by runing net incomes. It measures the overall operating efficiency and incorporates all the disbursals associated with the ordinary or normal concern activities. Operating net income border =net runing income Net gross revenues Net net income border. See income after cost. Operating cost and revenue enhancements have been deducted. Net net income border is divided by net income after revenue enhancements by net gross revenues. In analysing the income of soft drink traders the expression that will used to work out the net income is: NI =TS – TC Where: NI = net income TS = entire gross revenues TC =total cost Return on disbursals. Measures the gaining power of the concern for every peso spent. It is obtained by spliting the net income after revenue enhancements by the entire disbursals. ROE= net income after revenue enhancements Entire expense REVIEW 0F RELATED LITERATURE Carbonated Soft drinks Dealers Soft drinks are liquids which contains C dioxide. In the old ages that followed. many fluctuations of carbonated drinks. the procedure of carbonation can happen of course belowground or unnaturally. it is through supercharging. Examples of carbonated drinks include spring H2O. beer and sodium carbonate. or dad. Best illustration is Coca-Cola which is the family name all over the universe. Makers of carbonated drinks use caramel colourising more than any other colour in the nutrient industry. Carbonated drinks can by and large be 90 percent H2O. They are most normally associated with being non-alcoholic. although by definition beer is besides a carbonated drink ( Jeanne. 2011 ) . Harmonizing to the Pinoy Progress Philippines. Com. The Filipino Beverage Industry is composed of companies bring forthing ice tea drinks. soft drinks and Colas. energy drinks. milk. juice drinks and mineral H2O. In the soft drinks or soda class Coca-Cola and Pepsi of the US dominate. The soft drinks section of this industry right now is dominated still by the two American giants–Coke and Pepsi ( pinoyprogress. com2012 ) . Royal crown soft drinks are besides the taking trade name of soft drinks for the Filipinos. Geting Filipinos to appreciate RC Cola. a century-old trade name founded in Columbus. Georgia is something that the local bottlers of RC Cola have been making daily for the past eight old ages ( Manila Bulletin. May16. 2011 ) . Pepsi Cola Products Philippines reported its gross revenues figured being down to $ 2. 74 million in 2008 from $ 3 million in 2007. This is expected to be a consequence of people’s turning orientation towards healthier drink options ( Filipino Beverage Industry. 2009 ) . Consumption of and Gross saless of soft drinks The ingestion of carbonated soft drinks is high. and is fast making impregnation. So future growing in the Philippine soft drinks market is expected to come from non-carbonated soft drinks. says “Philippines Food and Drinks Market: Emerging Opportunities” . the latest research on the Filipino nutrient and drinks market ( Philippines Food and Drinks Market: Emerging Opportunities. Feb. 2009 ) . Status of gross revenues in soft drink industry has been good public presentation over the recent old ages. Enjoying high per capita ingestion among Asiatic states. The gross revenues of soft drinks are expected to come to make 6 Billion Liters in 2008. 23 % up over 2005 ( Philippines Food and Drinks Market: Emerging Opportunities. Feb. 2009 ) . Small retail mercantile establishment which is called sari- saree shops is accounted for the largest proportion of gross revenues in soft drinks. Because it is easy accessible to lower- and middle-income consumers. particularly in provincial countries where modern channels such as convenience shops and supermarkets are located in retail Centres that are far from residential countries ( Euromonitor. com2012 ) . In the Philippines. the competition in the carbonated drinks becomes stronger. The Coca-Cola Export Corp remains the unchallenged leader in the Philippine soft drinks class. The Coca-Cola Co is able to provide to lower-income consumers through its fully-owned subordinate Cosmos Bottling Corp. which manufacturer’s competitively-priced regional trade names ( Euromonitor. com2012 ) . Harmonizing to the research conducted by the Canadian Beverage Association ( 2009 ) . gross revenues tend to be seasonal. with higher ingestion happening during the hotter summer months. Unusually cold or showery conditions during the summer months can hold a negative impact on gross revenues. Aside for carbonated drinks. bottled H2O and fruit juice will be the most profitable in the non carbonated soft drinks in the market. Many factors impacting the gross revenues of soft drinks industry “Growing wellness consciousness and wellness safety concerns among Filipinos will be the cardinal make up one’s minding factors of this growth” ” . says an analyst at RNCOS. Other factors. including turning immature population. lifting income and switching consumer penchant are besides likely to add to the growing of wellness drink market in the state ( S. C 2009 ) . Problems Encountered by Soft drinks Industry Harmonizing to the research conducted by the Euromonitor’s squad. the twelvemonth of 2011 is a really ambitious twelvemonth for the soft drinks industry in the Philippines. Because of the economic back bead. shorter summer periods and higher inflationary force per unit area. the industry’s entire volume gross revenues contracted ( Euromonitor. com. 2012 ) . Increased competition from other non-alcoholic drinks. in peculiar bottled H2O. but besides drinks such as fruit/vegetable-based drinks. energy drinks. athleticss drinks and relaxation drinks. has given consumers more beverage picks. Changing consumer penchants and demographics. with a larger section of older consumers who are progressively concerned about their ain wellness. and concerns about fleshiness have resulted in an increased demand for new merchandises ( Canadian Beverage Association. 2009 ) .