marketing study lamisahan - part 1
TRANSCRIPT
A MARKETING PLAN FOR SPELUNKING PROJECT LOCATED IN
BARANGAY LAMISAHAN, ZAMBOANGA CITY
A project paper presented to the faculty of the
School of Management and Accountancy
Ateneo de Zamboanga University
In partial fulfillment
Of the requirements for the subject in
Entre 316 – A
By:
Krizia J. Abrenica
Reynaldo L. Almonia
Cherry Mae V. Apolinario
Ellora Kate D. Cabato
Ryan-Jay S. Jubail
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I. Acknowledgement
The team would like to thank Sir Rodel Alvarez, the Barangay Kagawad of
Lamisahan Zamboanga City and the people for welcoming the team and for
giving the needed information for the study.
Secondly, the team would like to thank the Department of Environment
and Natural Resources (DENR) and the Center for Community Extension
Services (CCES) for giving information and suggestions that made the team
study possible.
To the team’s very supportive moderator Dr. Visitacion L. Buenvenida for
continuously helping the team and making the study possible.
The team would like to express their gratitude to their parents and
guardian for the support emotionally, spiritually and financially.
Lastly, for the Creator, the Heavenly Father for the wisdom and
perseverance that He granted the team throughout the entire semester.
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II. Executive Summary
a. Project Name Zamboanga Lamisahan Spelunking
Sports Spot (ZamboLaSSS).
b. Location The proposed project will be
located at Barangay Lamisahan,
Zamboanga City
c. Proponents The members of the Paz y Mejorao
Lamisahan Association (PaMeLA).
d. Project Description The proposed project will be
service oriented. The project will
offer a Spelunking service activity
which involves cave exploration.
e. Objectives of the Project The study was made to provide
employment and to generate funds
for the community, the association
and the Barangay of Lamisahan
through this Spelunking project.
f. Project Cost The total project cost is Php
182,059.25.
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g. Contingency Plan If the requirements needed for the
success of this project will not be
met, such as the financial support
from the City Government, the
project will seek the support from
the Development Bank of the
Philippines (DBP). If the caves
cannot be operated for a
spelunking service as will be
assessed by the Department of
Environment and natural
Resources (DENR), the well being
and preservation of the caves will
be advised for its future
contribution to the community.
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III. Background and Organizational Profile
The Ateneo de Zamboanga University-Center for Community Extension
Services (CCES) has been working in partnership with Barangay Lamisahan, a
rural barangay situated east coast part of City of Zamboanga. The CCES office
recently organized the Paz y Mejorao Lamisahan Association (PaMeLA), a mixed
group of farmers and working mothers in the community, so far a total of 68
members, more than half of them are farmers. These working mothers form
themselves into group that addresses the health needs of each family and the
community as a whole. In support of CCES health program, the Family Health
Guardian (FHG) was formed, to which this idea was coined by Dr. Afdal Kunting
M.D, the former AMADA Resident Doctor and this was continued by the
succeeding Health coordinator, at present, Ms Janed Chan, R.N. held the post in
CCES office. This started with production of herbal medicines such as ointment
and liniment products made of herbal plants that are commonly grown in the
locality. It was then, the support of Local funder – Assisi Development
Foundation, Inc. at the highest level. Capacitating them in terms of skills and
providing the group with inputs and equipments to achieve the group plans and
vision. They were able to sell their herbal products to its members and local
residents in the community. However, the CCES staff tried to scale-up the group
achievement to higher level of micro-enterprising venture in addressing economic
upliftment in the community. The author convinced the group to establish a
business enterprise utilizing local resources by replicating the fate of Dulian RIC
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group. The PaMeLA mothers slowly, are currently making a way to gain
popularity in producing local delicacies such as the Bukayo and Achara. The
association and the barangay is currently working on the project of utilizing its
caves and waterfalls to increase their income and provide progress for the
barangay and provide other means of livelihood for the community.
Barangay Lamisahan is located in the eastern coast of Zamboanga City. It is
25.89 kilometers away from the City Hall, accessible by land. The barangay has
a total land area of 2,125 hectares, bounded on the North by Barangay
Bunguiao, on North-East by Barangay Sangali, on the South-East by Barangay
Victoria and on the South-West by Barangay Lapakan. Its topography is
characterized by flat lands on softly rolling hills with elevation ranging from 30 to
50 feet above sea level. The barangay is subdivided into five sitios, namely
Lanzones, Centro, Nangka, Calibatu, and Upper Lamisahan. The PaMeLA – the
barangay’s association office is located in Sitio Calibatu, Barangay Lamisahan,
including the production areas for the existing projects of the association of
Bukayo and Achara and the caves proposed for development.
The association of the Barangay has an organizational structure which shows
how it seeks to be well managed in terms of handling their livelihood, family
health, sustainable agriculture and parent teacher related activities effectively.
Like all other associations, the PaMeLA organizational structure is headed by the
President, followed by the Vice President. Under the Vice President are the
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Secretary, Treasurer, Auditor, P. I. O. and the Business Manager. The
association is also composed of four committees namely, the Family Health,
Livelihood Assistance Program, Sustainable Agriculture and Parents Teacher
Association Committee.
The barangay is seeking more ways on how to develop and improve their
community. The existing projects that they have under the community’s
association livelihood committee are the Bukayo and Achara production. They
wish to use the existing beauty of the barangay’s natural resources which is the
cave and the waterfalls. These projects that the barangay wish to develop are of
course in need of resources, particularly financial. Currently, since our city
government is promoting eco tourism or the tourism industry of the city, these
projects will be highly recommended by the PaMeLa Association of Barangay
Lamisahan. Since the development of the caves fall under this category, the local
government unit of the Barangay Lamisahan will most likely submit a resolution
to the City Hall that will signal and lead to the funding of the project. The City
Government will certainly be where the Barangay and association should seek to
provide sufficient funds.
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IV. Nature of the Business
Barangay Lamisahan is a barangay located about 25 kilometers away
from the City. It rests upon hills and is dressed by the tall trees and plants
growing abundantly around and within it – giving guests and visitors of this
barangay a closer view of nature. Some of these natural resources are the
Waterfalls and the Caves. For this project, the caves are to be focused on for
development. The proposed project is categorized as a service-oriented project.
The service to be offered is an activity which involves cave exploration,
commonly known as Spelunking. It is often undertaken for the enjoyment of the
outdoor activity or for physical science, as well as original exploration, similar to
mountaineering or diving. This Spelunking activity or the Zamboanga Lamisahan
Spelunking Sports Spot (ZamboLaSSS) will provide guests with an experience
enriched with thrill and with knowledge as well. This Spelunking activity will be
offered in three specific caves namely Cave Level 1, Cave Level 2, and Cave
Level 3.
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A. Values
Spelunking activity involves some values; values that will lead to
the project’s better way of delivering the service it provides to the people
who wish to participate in it and to the environment that it holds
responsibility to.
These are the following values:
1. To value the project’s intent to truly provide the best sport outdoor
Spelunking activity here in Zamboanga City.
2. To value the existence of nature and to use this wisely as a good source
of income and development for the community of Lamisahan.
3. We value our guests’ desire to truly experience nature’s beauty at its best
in the City of Zamboanga.
4. We value our guests who will contribute to the success of this project. We
truly intent to provide the safest and highest quality outdoor activity there
is, specifically spelunking.
5. Culturally, the Zamboangueños – are warm, friendly, affectionate,
persistent, hard-working, motivated and religious.
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B. Scope and Limitation of the Study (#4 deleted)
1. This study is focused mainly on the project’s marketability.
2. The study is made to cover only the first five (5) years of the
project.
3. The study will be limited to the college students of Ateneo de
Zamboanga University (ADZU), Western Mindanao State University
(WMSU), Unibersidad de Zamboanga (UZ), and Pilar College here
in Zamboanga City as its target market.
4. Only the 1st three (3) caves nearest from the entrance of the Sitio of
Calibatu ,out of the twenty (20) caves found in the Barangay, are
included in this study.
5. This study will only consider the Victoria Cave as its competitor.
V. Significance of the Study
With the introduction of this project or the ZamboLaSSS, the community of
the Barangay Lamisahan will be more developed. More developed, as the
barangay and its community will be known as a good tourist spot and will greatly
be benefited with the natural resources that they have. This project will basically
help provide employment for the community – with its aim of acquiring the
residents within the community to be employed and will provide more sources of
income for the community, the association and the barangay – with its aim as
well to distribute and use the income generated in this project equally and at the
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benefit of everybody involved. This study would as well be able to help the
community, especially the people responsible for this project, determine the
success, continuity and survival of the project during its first five years in
operation. The project will successfully capitalize on natural resources without
resulting to abuse or damage of the said resourced; this is practice of
responsible stewardship of nature.
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VI. SWOT Analysis
Strength (S)
S1 : Cave Formations S2 : 3 caves offered for spelunkingS3 : The caves’ structure or layout is conducive for adventurous activities like spelunking.
Weaknesses (W)
W1 : The known and unknown hazard of going inside the cave.W2 : Stolen cave formations (e.g. stalagmites and stalactites) and vandalisms in the cave.W3 : No expertise.W4 : The cave located in a far-flung area.W5: Limited capital.
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Internal
Factors
External
Factors
Opportunities (O)
O1 : Few competitors here in Zamboanga City. O2 : The lack of adventure spots here in Zamboanga City. O3 : People’s curiosity and lack of knowledge about caves.O4: Local government support to finance the project.O5 : Willingness of the barangay and association members to support the program.O5 : Army OutpostO6 : Cave-Waterfalls Package
S+O Strategies
Since there are few competitors in the spelunking industry and only few that offer adventurous activities, the organization will take advantage of these opportunities by introducing the spelunking services to its target market and use the cave’s unique features (e.g. cave formations, cave layout, etc.) to attract its target market and appeal to the market’s curiosity about caves and appeal to their adventurous side. The cave-waterfalls package would also be most helpful in the promotion of the services offered by the barangay, the cave-waterfalls package would add value to the services offered by the organization.
W+O Strategies
Potential competitors in the spelunking industry are hesitant to start up this kind of venture because of the dangers that accompany it – such as falling cave formations, harmful animals (e.g. snakes), effect of weather (e.g. flash floods) and other unseen dangers that may occur, that is why it gives the organization the opportunity to be one of the few to offer the service in Zamboanga City, to overcome the dangers inside the cave the organization will conduct a thorough assessment of the cave with the supervision of the DENR to ensure the safety of the cave for spelunking. Also conducting a daily or weekly maintenance of the area will be done to ensure the safety, cleanliness and accessibility of the area.
Threats (T)
T1 : Guano MiningT2 : Abundance of caves in Zamboanga City. T3 : Peace and order situation inZamboanga City.
S+T Strategies
To avoid Guano mining in the cave, the help and cooperation of the barangay and the organization’s members are highly needed. The barangay officials should inform its residents that
W+T Strategies
Most caves are located in far-flung areas, the thought of the cave being located in a far-flung area the target market of the organization are most of the time taken aback by the distance of the cave’s location to the
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Guano mining is prohibited and to acquire a resolution to protect the caves and make sure that violators receive the appropriate sanctions. The peace and order situation in Zamboanga City particularly in the eastern coast of the city where the cave is located, posts a threat in the marketability of the services offered by the organization to avoid this threat there is an Army outpost in Barangay Lamisahan, also a security member will be accompanying the cave visitors in Spelunking.
city proper, the target market of the service are college students and most college students do not have their own private vehicles. To minimize the negative effect of the cave’s location to the marketability of the service, the organization will be giving the cave visitors the option to avail the transportation offered by the organization. This strategy would also help minimize the threat of potential entrants. To minimize the danger of exploring the cave, safety gears (e.g. helmets, head lamp, first aid kit) are provided and during the spelunking activity a rescue and security member will be accompanying the cave visitors.
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VII. Methodology
A survey was conducted to gather information on the marketability of the
service and to gather information on the tastes and preferences of the
organization’s target market. The method of sampling used for the survey was
Proportional Sampling Method. The survey questionnaires were distributed in
four (4) schools located in the city namely, Ateneo de Zamboanga University
(ADZU), Universidad de Zamboanga (UZ), Western Mindanao State University
(WMSU) and Pilar College, particularly among its college students.
Information gathered about the Barangay, its profile and background, and
other necessary information of the assisted organization was provided by the
CCES, to understand the barangay’s current situation and to be familiar with the
barangay and its community.
To gather more information and better understand the Spelunking
industry, the researchers also conducted an interview to key people in the
Department of Environment and Natural Resources (DENR), where we were
informed of an act that should be strictly followed, Republic Act No. 9072 (AN
ACT TO MANAGE AND PROTECT CAVES AND CAVE RESOURCES AND
FOR OTHER PURPOSES). See Annex B.1
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VIII. Potential Market
The project’s target markets are the college students of Ateneo de
Zamboanga University (ADZU), Western Mindanao State University (WMSU),
Universidad de Zamboanga (UZ) and Pilar College. These schools were chosen
because they are the few known schools here in Zamboanga City with the
greatest number of college students. College students were chosen because of
the nature of the business which is adventure. The perfect age group for this type
of venture are teenagers, specifically, college students, because teenagers are
the most adventurous, curious, adrenaline seekers, and are physically equipped
for the kind of activities present in spelunking. The Ateneo de Zamboanga
University has a total college population of 3,639, while 14,908 for Western
Mindanao University, 8,000 for Universidad de Zamboanga, lastly, 1,447 for Pilar
College. The researchers conducted a survey and made use of the stratified
random sampling to be able to get the sampling size which will be used to
represent the total population of the project’s target market. The total sampling
size is 203, composed of 26 respondents from ADZU, 108 from WMSU, 59 from
UZ and 10 from Pilar College. A detailed presentation of the data is found in table
1. Expansion of market will take place after five years of operation to make sure
that the project is very well established, familiar with its environment and in its
field and has already known all necessary information needed in handling a
bigger market.
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Table 1: Population of the Target Market
Schools Respondents/School Population
a
Percentage
a/b= %WMSU 108 14,908 53%ADZU 26 3,639 13%UZ 59 8,000 29%Pilar College 10 1,447 5%Total Target Market 203 27,994
See Annex A.2.
To be able to determine the paying capacity of the target market, the
researchers would present the daily allowance of the target market in table 2
below.
Table 2: Daily allowance
# of Respondents Percent (%)50 – 100 96 53
150 – 200 76 42200 above 8 5
Total 180 100
Table 2, shows the daily allowance of the respondents. 53% of the
respondents said that their daily allowance is around P50-P100. On the other
hand, 42% of the respondents have a daily allowance of P150-P200 and 5% of
the respondents have a daily allowance of P200 and above. The total number of
respondents in this table is only 180; it was taken from table 6 which represents
the number of respondents who are interested to try spelunking in the city, which
is the target market of the service.
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Table 3: Respondents with spelunking experience
# of Respondents Percent (%)Yes 61 30No 142 70
Total 203 100
Table 3 represents the percentage of respondents from each of the four
schools (ADZU, WMSU, UZ and Pilar) who have tried and have not tried
spelunking in the past.
This table shows that there is a great number of respondents, specifically
around 70%, who have not tried spelunking and 30% of the respondents who
have tried this outdoor activity. This means that there is a great number of
respondents who could be a potential market of the project, to which this study
will be focusing on.
Table 4: Respondents who are interested to try spelunking
# of Respondents Percent (%)Yes 128 90No 14 10
Total 142 100
Table 4 represents the 70% of the respondents who have not tried
spelunking, who would like and would not like to try spelunking (see table 3). The
results show that 90% of the respondents would want to try spelunking and 10%
of the respondents would not want to try spelunking. Majority of those who have
not tried spelunking would want to try spelunking, which means that the service
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has a great chance for marketability. The researchers should come up with
strategies and promotions to be able to take advantage of these figures.
Table 5: Factors
# of Respondents Percent (%)Accessibility 8 57Affordability 0 0Package deals 6 43
Total 14 100
Table 5 represents the factors that would make the 10% respondents (see
table 4) who would not want to try spelunking interested in trying. 0% or none of
the respondents chose affordability which means the price of the service is not
their major concern and this would mean that the pricing decisions for the service
is a lot easier. Majority of the respondents chose accessibility as the factor that
would make them interested in trying the service, Lamisahan, where the caves
are found is located in the East Coast of Zamboanga City approximately 25
kilometers from the city which is not quite accessible to our target market which
are college students. That is why the researchers should focus on how to make
the service accessible to its market.
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Table 6: Interested to try spelunking here in Zamboanga City
# of Respondents Percent (%)Yes 180 89No 23 11
Total 203 100
Table 6 shows the nature of the demand for the service, whether or not
the respondents will try spelunking here in Zamboanga City. The table shows
that a total of 89% of the respondents would like to try spelunking and have the
capacity to pay the service fee as shown in table 2.
Table 7: Frequency
# of Respondents Percent (%)Once a month 49 27Once a year 56 31Twice a year 50 28Thrice a year 18 10Others 7 4
Total 180 100
Table 7 shows how frequent the respondents will avail of the service
offered. The figure shows a total of 27% of the respondents would avail of the
service once a month. While 31% of the total respondents will avail of the service
once a year. For twice a year, 28% of the total respondents will avail of the
service. And lastly, 10% of the total respondents will avail of the service thrice a
year.
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Table 8: Price the Respondents Willing to Pay for the Service
# of Respondents Percent (%)100 – 150 79 44151 – 200 42 23201 – 250 36 20250 above 23 13
Total 180 100
Table 8 shows how much the target market is willing to pay for the
experience of a spelunking activity. The selling price for the spelunking service
will start at P50.00. By this, it means that prices offered will increase depending
on what packages the guests will choose (e.g. cave package with transportation
and without and cave-waterfalls package with transportation and without). The
starting price of P50.00 offered, is much lower than what the target market is
willing to pay. Based on the results in table 2, which shows the capability of the
respondents to pay for the service, 100% of the respondents are capable of
paying the Cave Package(w/o transportation) which P50.00 and for Cave
Package(w/ transportation) which is P71.00. Cave-Waterfalls Package(w/o
transportation) which is P100.00 and Cave-Waterfalls Package(w/transportation)
which is P121.00, only 47% of the respondents are capable of paying for those
packages, 47% is composed of the respondents who have a daily allowance of
150-200 and 200 above. Considering the expenses of students nowadays, 53%
of the respondents who have daily allowance of 50-100 are not capable of paying
for the Cave-Waterfalls Package (w/ and w/o transportation).
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Table 9: Package deals
# of Respondents Percent (%)Cave Package 52 29
Cave – Waterfalls Package
128 71
Total 180 100
Table 9 shows the packages that the project will be offering, namely the
Cave Package and Cave-Waterfalls Package. The Cave Package is a package
for individuals who would like to go for spelunking with the exclusion of going to
the waterfalls. While the Cave- Waterfalls Package is a package for individuals
who would like to go both for spelunking and waterfalls. These packages will
comprise of the package with transportation and without transportation. Based on
the figure above, a total of 71% of the respondents would most likely avail of the
cave-waterfalls package and only 29% of the respondents would likely avail the
cave package. Which means that majority of the respondents prefer the cave-
waterfalls package.
Table 10: Business Operation
# of Respondents Percent (%)Morning tour 53 29
Afternoon tour 32 18Whole day tour 95 53
Total 180 100
Table 10 shows what time of the day they want to avail of the service. A
total of 29% of the respondents would like to avail of the morning tour, 18% of the
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respondents would like to avail of the afternoon tour and 53% of the respondents
would like to avail of the whole day tour.
Majority of the respondents chose the whole day tour and based on table
8 (Packages), 71% of the respondents chose the Cave-Waterfalls Package, we
can say that one of the factor that made majority of the respondents choose the
whole day tour is the type of package they chose. The time or how long a group
stays in the area depends on the package they choose. If they chose the cave
package, the morning or afternoon tour is more appropriate than the whole day
tour because spelunking would most likely only take half of the day to complete
the activity. While the whole day tour is more appropriate for the Cave-Waterfalls
Package, half of the day or the morning will be for the spelunking activity and the
afternoon to relax and unwind in the waterfalls.
Table 11: Transportation
# of Respondents Percent (%)Yes 170 94No 10 6
Total 180 100
Table 11 shows whether or not the respondents would want that
transportation be provided for them going to Lamisahan. A total of 94% of the
respondents would want that transportation be provided for them, while a total of
6% of the respondents would not want that transportation to be provided for
them.
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Table 5 shows the factor that would make the 10% of respondents who
did not want to try spelunking be interested in trying. 57% of the respondents
chose accessibility and 94% of the respondents would want that transportation
be provided for them. This means that the transportation that will be provided, will
make people avail of the service more and those who did not want to avail of the
service because of the distance of the location from the city would avail of the
service because it is now accessible.
The customers will be given the option whether or not to avail of the
transportation offered by the packages because there are those who have their
own transportation.
IX. Direct and Indirect Competitors
Considering that this activity is an outdoor sports activity, the project have at
least considered and determined two established competitors that will be
competing with the project. One competitor, identified by the DENR, as directly
competing with the project that offers the same outdoor activity with the project
as well, is the Victoria Cave located east coast of the city in Barangay Victoria.
Another competitor indirectly competing with the project that offers outdoor sports
activity as well, is the Zamboanga Ecozone Zip line located west coast of the city
in barangay San Ramon.
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X. Demand and Supply
A. Demand Situation
As most of the people, particularly the ones who can’t afford to travel
and pay for experiences and once in a lifetime adventures, have not yet
experienced at least paying for an experience involving outdoor sports. If
some have tried, it may be in places such as Manila, Cebu, Davao, and other
places located far away from the city and it may only be either hiking or
mountaineering.
Table 12: Demand
Demand2012 2013 2014 2015 2016
28,652 32,950 37,892 43,576 50,112See Annex A.16
From the survey conducted and from the reality of seeing where and
how people experience outdoor sport, guests, particularly, college students –
target market, would be willing and capable to experience a new, accessible
and affordable outdoor sports activity called spelunking, which this project
offers. The interest of trying the said sport and wanting to experience it here
in the city, gives a clear view of the demand of the project.
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B. Supply Situation
Zamboanga is a city abundant with natural resources and beauty.
Mostly, these natural resources can be found in barangays that are far from
the city proper. Gifted with must seen natural resources, is the Barangay
Lamisahan. And the caves found within this barangay are a great example of
its natural beauty.
According to the DENR, this project will be the second project to offer
the spelunking outdoor sports activity here in Zamboanga City. The first to
offer this activity in the city is the Victoria Cave, which will be the projects
direct and only competitor. The market of the project will depend on the
demand that is unsatisfied by the supply of the project’s direct competitor.
The Victoria cave has a capacity of 20 persons daily and a total of 7,456
persons annually.
Table 13: Supply
Supply2012 2013 2014 2015 20167,456 7,721 7,996 8,281 8,576
Supply will increase by 3.56% annually.
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C. Demand and Supply Analysis
Table 14: Demand Unsatisfied
Demand Supply GAP2012 28,652 7,456 21,1962013 32,950 7,721 25,2282014 37,892 7,996 29,8962015 43,576 8,281 35,2952016 50,112 8,576 41,536
See Annex A.16 and table Table 13
The table above shows the demand for the project, supply of the project’s
competitors and the GAP. The GAP is the demand unsatisfied by the
competitors, which will be the market of this project.
Based on the current situation of the demand and supply of the project, it
can be concluded that, there is still a high demand that is unsatisfied by the
project’s competitors, which would mean that there is still market for the project.
D. Projected Demand and Projected Supply
Table 15:
Projected Demand Projected Supply2012 16,333 3,875 2013 18,652 3,875 2014 22,103 3,875 2015 21,634 3,875 2016 30,709 3,875
See Annex A.6 and A.13
The table above shows the projected demand and projected supply of the
project. The projected demand of the project was taken from the demand
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unsatisfied by the project’s target competitors (See table #14), to be able to get
the projected demand, the researchers filtered out the demand unsatisfied with
the percentage of the market that are capable and willing to pay the activity’s
selling price. The project will operate three(3) operating days a week, operating
days will be Fridays, Saturdays and Sundays. The daily capacity of the project
will be a total of 25 persons a day, three of the caves found in the area will be
used and operated for the service; each cave has a capacity of 5 persons with
the exclusion of the 2 members that will be accompanying the guests when
entering the cave. The project will have three (3) tours in the morning, prioritizing
guests who chose the cave package and cave-waterfalls package with
transportation. Two (2) tours will be accommodated in the afternoon, prioritizing
guests who chose the cave package and cave-waterfalls package without
transportation. The business will not operate during rainy days for the safety of
the guest and members of the association. The projected annual supply of the
first year is 2,385, the annual supply of the service is supposedly 2,790 but since
the business will not operate during rainy days, the average monthly rainy days
(See Annex A.6) will be subtracted to 2,790. The supply of the project will
increase by 15% to be able to cater the growing demand of the activity.
The project usually operates three (3) days a week which are Fridays,
Saturdays and Sundays, including the lean days. But during the peak seasons
which are the Semestral-break (Last two (2) weeks of October) and summer
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season (Last two (2) weeks of April and last two (2) weeks of May), the project
will operate seven (7) days a week (See Annex A.6).
XI. Critical Issues
1. The known and unknown hazards of going inside the cave.
- Of course, in some cases, hazards such as falling cave
formations, presence of bad air, etc., especially those that are
unknown may occur inside the caves. This becomes a critical
issue because guests and as well as the people involved in this
project may not be very aware of this. So there would always be
perceptions of the risks involved in participating in this kind of
outdoor activity. To avoid this, inspection of the caves will be
done every week of operation and on the day of operation,
before the activity starts and safety equipments will be provided.
This is at least to make sure that the caves are cleared of
possible hazards before it will be entered for the activity and
guests and members entering the cave will be ensured of their
safety respectively.
2. Being a new entrant in the market.
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- Being a new entrant in the industry always pose a threat to
projects such as this. It becomes a critical issue because
potential customers may not always have the interest of trying
or acquiring the services of new entrants since the project is
new to them - guests are hesitant. There is a perception that
new entrants of products and services are not yet tested and
potential customers are concerned on the quality of the product
or service that these new entrants offer. Spelunking may
already be present but not all or most of the people who do not
do outdoor sports may totally be aware of this. So the project is
faced with the same dilemma. To avoid this, the project will
make advertising strategies (e.g. tarpaulins, direct marketing,
facebook) that will help the service inform and prove its quality
as providing a good spelunking activity to its market.
3. The cave being located in a far- flung area.
- Accessibility is always an important factor for customers. They
become more interested if the establishments they go are
accessible at a low cost. This becomes a critical issue since this
project is located in a far-flung area and only accessible with
transportation. To avoid this, transportation will be provided for
the benefit and convenience of the guests. Guests will have the
29
option or whether or not to avail of the packages with
transportation.
4. Abundance of caves in Zamboanga City.
- There are a lot of discovered and undiscovered caves in the
city. These caves may either mean that there is always a
possibility that sooner or later, these caves may be established
and known to the public, which may compete with the project –
which may possibly attract the interest of our target market and
result in losing a number of the project’s potential customers. To
avoid this, promotional activities such as discounts and feed
backing will be provided to retain and attract customers. Safety
equipments provided may also be one way to prove to the
market that the project wishes to provide the safest way in how
the service will be offered,
XII. Goals, Objectives, and Strategies
30
A. Goals and Objectives of the Study
1: To be able to formulate strategies to overcome critical issues.
Objectives: To be able to come up with solutions that would overcome
unexpected problems in the business. Strategies that will, though may not
totally eliminate these issues will progressively avoid and effectively
overcome such issues.
2: To be able to penetrate the market with the use of promotional strategies.
Objectives: To be able to come up with strategies that would catch the
attention of its market, that would build the interest and desire of the
market with the use of carefully planned strategies within the first year of
operation. Lastly, to make use of promotional strategies that would
effectively build the desire and interest of the market on the service
offered to ensure that the money spent is worth every penny.
3: To increase sales annually.
Objectives: To come up with ideas that would attract and acquire more
customers frequently.
B. Marketing Strategies
31
A. Service
Safety of the activity/ customers
One of the major concerns in spelunking is safety, people are
hesitant to try such service because of the dangers attached to it and
some of the stereotypes that people have of caves. That is why the
researchers focused on this aspect of spelunking to ensure the safety of
the cave goers and to assure the project’s potential market that their
safety is the service’s number one priority.
To ensure the safety of cave goers, safety equipments essential for
spelunking will be provided. Safety equipments provided are the following:
safety helmets, gloves, ropes, and flashlights. Also, the rescue and
security members will be accompanying the cave goers; the member is
qualified and equipped with a first aid kit and all the necessary equipments
needed for emergencies. Project will as well be informed of the weather
conditions of the city to be ensured of the safety of the guests and the tour
itself ahead of time from the Davis weather station in ADZU so the project
will know if it will proceed with operation or not.
Inspection of the caves will be conducted before the arrival of the cave
goers to ensure that the cave is free from potential dangers (e.g. falling
cave formations, snakes, etc.).
Packages
32
There are two packages the customers can choose from the following
are: the Cave Package and Cave-Waterfalls Package. Each package will
also be composed of the with transportation and without transportation
package. The Cave Package is composed of a half-day spelunking
activity inside the 3 caves of Lamisahan. While the Cave-Waterfalls
Package is composed of a half-day spelunking activity and the other half
of the day will be spent in the Lamisahan Waterfalls.
Cave Features
CAVE
Cave is one of our natural features and should be protected. Because of their
slow and gradual formation that takes thousands of years, sediments are
deposited, beautiful calcite formations build up, and various creatures find a
33
home. A lot of our caves have been vandalized by careless visitors or damaged
by poorly planned commercial development. Such destruction is a crime against
nature and there is a moral responsibility on the part of everyone using this
environment for their enjoyment to ensure its preservation for others. All of us,
therefore, should try to prevent the destruction of these natural wonders.
Republic Act 9072 dated April 08, 2001, otherwise known as the National Cave
and Cave Resources Management and Protection Act mandated the Department
of Environment and Natural Resources (DENR) to formulate, develop and
implement a national program for the management, protection and conservation
of caves and cave resources.
34
STALACTITES
A stalactite is a speleothem hanging downwards from a roof or wall. Every
stalactite begins with a single mineral-laden drop of water. When the drop falls, it
deposits the thinnest ring of calcite. Each subsequent drop that forms and falls
deposits another calcite ring. Eventually, these rings form a very narrow, hollow
tube commonly known as a "soda straw" stalactite. Soda straws can grow quite
long, but are very fragile. If they become plugged by debris, water begins flowing
over the outside, depositing more calcite and creating the more familiar cone-
shaped stalactite. Stalactites can also form on concrete, and on plumbing where
there is a slow leak and limestone (or other minerals) in the water supply,
35
although they form much more rapidly there than in the natural cave
environment.
STALAGMITES
A Stalagmite is a type of speleothem that rises from the floor of a limestone cave
due to the dripping of mineralized solutions and the deposition of calcium
carbonate. This stalagmite formation occurs only under certain pH conditions
within the underground cavern. Stalagmites should normally not be touched,
since the rock buildup is formed by minerals precipitating out of the water
36
solution onto the old surface; skin oils can alter the surface where the mineral
water will cling, thus affecting the growth of the formation. Oils and dirt from
human contact can also stain the formation and change its color permanently.
COLUMNS
Columns are formed by the unions of stalagmites and stalactites. As compound
cave formations, they include among their ranks the tallest free-standing
speleothems in the world.
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RIMSTONE DAMS
A RIMSTONE Dams is a type of speleothem (cave formation) in the form of a
stone dam. Rimstone is made up of calcite and other minerals that build up in
cave pools. Rimstone dams form where there is some gradient, and hence flow,
over the edge of a pool. Crystallization begins to occur at the air/water/rock
interface. The turbulence caused by flow over the edge of the building dam may
contribute to the out gassing or loss of carbon dioxide from water, and result in
precipitation of mineral on this edge. When dams form under running water, they
tend to be higher when the passage is steeper. Shallow-gradient dams tend to be
lower and more sinuous in nature. Rimstone is one of the most common cave
formations, after flowstone, stalactites, and stalagmites.
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FRUIT BAT
(www.mongabay.com)
The cave is populated by giant fruit bats and cave bats that emerge from the
caves to forage for food with the descent of the dusk. One must be extremely
cautious and must avoid making noise that will disturb the bats. When disturbed,
bats are known to fly about in frenzy. Bat Cave is a series of small caves leading
to the actual Bat Cave which is also easy to get to by land.
Bat Caves in Philippines is a famous tourist attraction in Philippines. Bats, like
humans, are mammals. That is, their young is born alive and nourished by the
mother. But unlike people, bats, particularly cave bats, hate the light and the
39
noise. This is why they are also nocturnal, that is, they are awake at night and
are asleep during the day.
CAVE CENTIPEDES(www.ouramazingplanet.com)
Centipedes normally have a drab coloration combining shades of brown and red.
Centipedes are Cavernicolous (cave-dwelling) and subterranean species may
lack pigmentation and many tropical. Centipedes can be found in a wide variety
of environments. Centipedes are only capable of discerning light and dark, and
not of true vision. Indeed, many species lack eyes altogether. In some species
the final pair of legs acts as sense organs similar to antennae, but facing
backwards. Unusual sense organs found in some groups are the organs of
Tömösvary. These are located at the base of the antennae, and consist of a disc-
40
like structure with a central pore surrounded by sensory cells. They are probably
used for sensing vibrations, and may even provide a sense of hearing.
SCORPION(www.scubadivingmalta.com)
They have eight legs and are easily recognized by the pair of grasping claws and
the narrow, segmented tail, often carried in a characteristic forward curve over
the back, ending with a venomous stinger.
41
CAVE SPIDER(www.zooniversity.org)
Cave Spiders can be found in almost any dark, damp space. They tend to be an
earthy color, and are not very big. Cave Spiders are grey, green or brown in color
and have a rounded, dotted belly as well as eight hairy legs. They have two eyes,
located on either side of their head to provide half circular vision. They have two
bite blades, located at either side of their mouth. These are used to cut up their
food before it enters the mouth. The segment closest to the spider’s mouth bears
a sharp plate with jagged edges that are used for cutting and crushing food.
Cave Spiders can grow up to 2 and a half palm spans and their size is dependent
on the region where they live.
B.Place
Distance
The Lamisahan caves are located in the east coast of the city
approximately 25 kilometers from city proper. To make the service
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accessible to its market, transportation will be provided for guests
who don’t have their own private vehicles and who wish to take
advantage of the package offering the transportation at a very
affordable price, going to Lamisahan and back to the city; the
transportation will be available in both the cave package and the
cave-waterfalls package. Guests will decide on whatever package
they may desire.
C. Promotion
Advertising
To inform the market of the existence of such service, some
strategies will be used and these are as follows:
1. Tarpaulin
A standard-sized – 6x8 sq. ft. tarpaulin about the
service will be distributed and hanged inside the
campus of schools and universities, particularly Ateneo
de Zamboanga University, Western Mindanao State
University, Universidad de Zamboanga and Pilar
College to increase the awareness of the market. The
tarpaulin will include information about the cave,
pictures of the cave and spelunking, lastly, contact
information for inquiries and reservations. These
43
tarpaulins will be replaced by new ones every year.
(See Annex B.3)
2. Social Networks
ZamboLaSSS will utilize social networking site to
advertise the spelunking activity located in Barangay
Lamisahan. The official facebook page is,
www.facebook.com/ZamboLaSSS. ZamboLaSSS
believes that more customers will at least know about the
service if the social networking starts. Information about
the service as well as contact information for inquiries
and reservations may also be relayed to the market. This
kind of strategy is already working in the current scenario
as many businesses conduct their businesses through
the web. The internet has made it possible for
businesses to market their service in a very cost-
sensitive and convenient manner (See Annex B.4.).
3. Discounts
During lean days - this includes the month of January to
February and June to September, Discounts, particularly
30% will be given to the first ten (10) persons to make
reservations for the activity, for the first week of
operation, every month. The discount will be offered as
44
these will be the days where the project will be seeking
the interest of the market more since these months
comprise of the days of classes. This will also give the
market the interest or motivate them in undergoing the
activity as they will get the same quality service that is
offered at a lower cost. (See A.18)
Direct Marketing
One of the officers or one of the tour guides will be visiting
schools particularly, ADZU, WMSU, Pilar and UZ to
advertise the service to its market directly. Offices such as
the Social Awareness and Community Service Involvement
(SACSI) and Student Government for ADZU, The Dean of
College of Physical Education, Recreation and Sports
(CPERS) and Student Government for WMSU, and Student
Government for Pilar and UZ. These offices have access to
the appropriate people, events, classes and students that
this service may be advertised in the four schools. The
visitation will be conducted a week before the semestral
break and summer break, because during these times
students are eager to have some sense of fun and
adventure after being so busy with school work. During the
visit the officer or the tour guide will be showing pictures of
45
the cave, explain to them what spelunking is, what packages
are offered, when they can avail of the service, how to
contact and make reservations etc.
C. Price
A. Cave( w/o transportation)
Labor(Maintainance) 10,080 A.7Electric Bills 3,552 A.9Communication Expense 7,188 A.8Depreciation 24,265 A.11Total Cost 45,085Divided by potential customers/year 3,875 A.6Cost/customer 12 Mark up 35 Selling Price of Cave Package 50
Table 16: Projected Selling Price for the Cave Package( w/o transportation)
2012 2013 2014 2015 2016
50 55 61 67 70Selling Price will increase by 10% annually
46
B. Cave (w/transportation)
Labor(Maintainance) 10,080 A.7Electric Bills 3,552 A.9Communication Expense 7,188 A.8Depreciation 24,265 A.11Total Cost 45,085Divided by potential customers/year 3,875 A.6Cost/customer 12 Mark up 35Cave Package 50 Add: transportation cost/customer 21 A.22Selling Price of Cave Package(w/transportation) 71
Table 17: Projected Selling Price for the Cave Package (w/transportation)
2012 2013 2014 2015 2016
77 83 84 91 95Selling Price will increase by 10% annually
C. Cave-Waterfalls (w/o transportation)Labor(Maintainance) 10,080 A.7Electric Bills 3,552 A.9Communication Expense 7,188 A.8Depreciation 24,265 A.11Total Cost 45,085
Divided by potential customers/year 3,875 A.6
Cost/customer 12
Mark up(100%) 35
Cave Package 50
Selling Price (Waterfalls) 50
Selling Price of Cave-Waterfalls Package 100
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Table 18: Projected Selling Price Cave-Waterfalls (w/o transportation)
2012 2013 2014 2015 2016
100 105 111 117 120Selling Price of the Cave Package increases by 10%; selling price of the waterfalls remains constant.
D. Cave-Waterfalls (w/ transportation)
Labor(Maintainance) 10,080 A.7Electric Bills 3,552 A.9Communication Expense 7,188 A.8Depreciation 24,265 A.11Total Cost 45,085
Divided by potential customers/year 3,875 A.6
Cost/customer 12
Mark up(100%) 35
Cave Package 50
Selling Price (Waterfalls) 50
Cave-Waterfalls Package 100
Add:transportation cost/customer 21 A.22
Selling Price of Cave-Waterfalls (w/transportation) 121
Table 19: Projected Selling Price for the Cave-Waterfalls Package (w/transportation)
2012 2013 2014 2015 2016
121 127 134 141 145
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Selling Price of the Cave Package increases by 10%; selling price of the waterfalls remains constant
D. Projected Sales
Year Sales Less: Sales(Waterfalls) Total Sales2012 233,262 64,700 168,562
2013 247,619 64,700 182,919
2014 264,393 64,700 199,693
2015 281,167 64,700 216,467
2016 290,690 64,700 225,990
See A.21(Sales Waterfalls)
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Marketing Implementation
Table 20: Action Plan:
MARKETING STRATEGIES
IMPLEMENTATION WHERE TO BUY/SERVICE PROVIDER
PERSONS RESPONSIBLE
TIME FRAME BUDGET
1. Safety Equipments and training of the members (e.g. tour guide, and the rescue and security)
a. A letter requesting for the assistance of the Department of Environment and Natural Resources to access the caves will be made and sent to the DENR, to be able to find out whether or not the caves are safe for spelunking.
b. Wait for the response from the DENR for the schedule of the assessment.
b. Assessment will be done and at the same time a barangay resolution should also be made. A resolution
IMPLEMENTATION
a. N/A
b. DENR
b. DENR and the LGU
WHERE TO BUY/SERVICE PROVIDER
a. Project Manager
b. Project Manager
b. Project Manager and the LGU
PERSONS RESPONSIBLE
a. 1 week
b. 1 week
b. 1 month
TIME FRAME
a. N/A
b. N/A
b. N/A
BUDGETMARKETING STRATEGIES
50
that will permit the operation of the project.
c. After the assessment of the cave has been done, training of the members who will be part of the spelunking activity will be trained by the Department of Environment and Natural Resources and the Department of Tourism.
d. Basic rescue and medical training will be given to the three tour guides and rescue and security members.
e. Safety equipments will be bought here in Zamboanga City. (See Table 15) for complete list of equipments.
c. DENR and DOT
d. HEMS
e. HABAGAT
c. DENR and DOT
d. HEMS and Eco-tourism committee
e. Eco-tourism committee
c. 1 month
d. A month before the start of operations.
e. A month before the start of operations.
c. 3,000 (A.17.1)
d. Php 8,250.00(A.17.2 & A.23)
e. Php 158,255(Table 23 & 24)
MARKETINGSTRATEGIES
IMPLEMENTATION WHERE TO BUT THE SERVICE/ SERVICE
PROVIDER
PERSONS RESPONSIBLE
TIME FRAME BUDGET
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2. Transportation a. Look for a jeepney driver from the Barangay Lamisahan.
b. Come up with an agreement with the price and schedule and discuss necessary information and condition about their service.
a. N/A
b. N/A
a. Project Manager or any of the members of the committee given authority by the project manager.
b. Project Manager or any of the members of the committee given authority by the Project Manager.
a. A month or two months before the start of operations.
b. A month or two months before the start of operations.
a. N/A
b. N/A
3. Direct Marketing
a. Make and send the letter addressing the schools concerned (ADZU, WMSU, PILAR, UZ) about the agenda of such visit.
b. Wait for the response and the permission to conduct the particular advertising activity.
c. Go to each of the
IMPLEMENTATION
a. N/A
b. N/A
c. N/A
a. Secretary
b. Secretary
c. Project Manager
PERSONS RESPONSIBLE
a. 3 weeks before the semestral break and summer break.
b. 3 weeks before the semestral break and summer break.
c. 3 weeks
TIME FRAME
a .Php 578.00(A.15.2)
b.N/A
c. Php 1234.00
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MARKETINGSTRATEGIES
WHERE TO BUY THE SERVICE/ SERVICE
PROVIDERBUDGET
(A.15.2)
schools and visit necessary offices for start of such activity.
with two of the tour guide members of the committee given authority by the project manager.
before the semestral break and summer break.
4. Facebook a. Gather pictures and information of the service.
b. Make a facebook page.
a. Facebook
b. Facebook
a. Project Manager or any of the members of the committee given authority by the project manager.
b. CCES
a. A month after the start of operations.
b. a. A month after the start of operations.
a. N/A
b. N/A
5. Discounts a. inform the secretary and treasurer of the discount to be offered and the process in which how and when the discount will be given.
b. secretary will inform CCES about the discounts to be informed by them through FB.
c. inform the market through tarpaulins and
a. N/A
b. N/A
c. N/A
a. Project Manager
b. Secretary
c. Project Manager or any of the
a. a month before the start of lean season. (jan. to feb. and june to sept.)
b. a. a month before the start of lean season. (jan. to feb. and june to sept.)
c. a. a month before the start
a. N/A
b. N/A
c. Php 5,652.00(A.15)
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direct marketing as well. members of the committee given authority by the project manager.
of lean season. (jan. to feb. and june to sept.)
6. Tarpaulin a. make the design or the layout. (see annex B.3)
b. have the design and layout approved by the project manager. c. print the tarpaulins.
d. Distribute the tarpaulins in ADZU, WMSU, UZ and Pilar.
a. Greenlane
b. Greenlane
c. Greenlane
d. N/A
a. Project Manager or any of the members of the committee given authority by the project manager.
b. Secretary
c. Greenlane
d. Project Manager or any of the members of the committee given authority by the project manager.
a. a month before operation.
b. a month before operation.
c. a month before operation.
d. a month before operation.
a. Php 3,840.00(A.15.1)
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XIII. Recommendation
Currently, the association holds and operates two existing projects. And
mostly or all of the data that they have in terms of the technical, management,
financial, and marketing aspects are based on these existing projects – the
Bukayo and Achara Production. The researchers have used the existing data
necessary for this project that the association has under each aspect and
have included the recommendations in relation to the new project.
1. Management Aspect
There are four current committees under the organizational chart of the
association. The two existing projects are under one committee namely the
Livelihood Programs Committee. Other than these two existing projects of the
association, this project will also be included in the association’s list of
projects. Accordingly, a requirement of creating another committee for the
new project is recommended.
Currently, the association is constructed, and each member’s task and
responsibility, particularly the officers are identified with an organizational
chart. The organizational chart of the association is shown below:
55
A. Recommended Organizational Structure (Service)
This new committee structure that will be added to the
organizational structure of the association will provide a clearer framework
to the people in ZambolaSSS who are involved in this service. The new
committee will be named the Eco-tourism Committee. This committee will
56
be headed by the Project Manager, assisted by the Secretary and
followed by the Treasurer. The members under this committee will
comprise of the Tourist Guides, and the Rescue and Security. The new
committee and each person’s task and responsibilities are shown below.
57
Project Manager
Secretary
Treasurer
Members
(3) Tour Guide
(3) Rescue and Security
B. Job Specification and Job Description
The ZamboLaSSS will hire new employees that are needed and were
mentioned in the chart above. And these are as follows:
Table 21: Job Description and Job Specification
Position No. of Employees
Job Description Job Specification
Project Manager
1 -Leads employees, directs business operations and ensures that overall objectives and tasks are accomplished.-Conducts evaluations of the committee’s performance as a whole and check for improvements or down falls.
-He/ she should be of legal age, in good moral character, resident of Barangay Lamisahan, and has concern and dedication to work for other members.-Should have a wide variety of strategic experience and the ability to execute plans efficiently and within budget.
Secretary 1 -Prepares and manages correspondence, reports and documents.-Accountable for appointments and scheduling properly on the days and times specified for the reservation of the spelunking activity, as
-He/ she should be of legal age, in good moral character, resident of Barangay Lamisahan, and has concern and dedication to work for other members.-Proficient in spelling, punctuation, grammar and other English language skills.
58
well as reminding people of these appointments.
Treasurer 1 -Maintains an overview of the organization's affairs.-Ensuring its financial viability and that proper financial records and procedures are maintained.-Issues the receipts to the guests, in which the latter may choose either Cave Package or Cave-Waterfalls Package.-The one who will receive the payment of the guests.
-He/ she should be of legal age, in good moral character, resident of Barangay Lamisahan, and has concern and dedication to work for other members.-Should understands and accept of the legal duties, responsibilities and liabilities of trusteeship.
Tourist Guide
3 -Escorts the group/s on sightseeing and exploring on the cave.
-Monitor visitors' activities in order to ensure compliance with establishment or spelunking regulations and safety practices.
-He should be of legal age, in good moral character, resident of Barangay Lamisahan, and has concern and dedication to work for other members.-Should have excellent communication skills, including the ability to speak and read whatever languages are necessary to communicate with the visitors.-Should have sufficient knowledge on the cave
59
they are assigned to.Rescue and
Security3 -Preserves life by
providing lifesaving first aid.-Performs the first medical assessment and care on an injured or sick person.-Maintains the peace and order in Barangay Lamisahan, ensuring safety of its own inhabitants and deputized by the local chairman.
-He/she should be of legal age, in good moral character, resident of Barangay Lamisahan, and has concern and dedication to work for other members.-Has preferred experience includes teaching basic first aid and life support procedures.
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C. Profit Sharing
50% - workers of the said project
40% - owners of the caves
10% - Association
The researchers recommend the data shown above to provide for the
profit of the benefiting parties of this project. 50% of the profit earned will be
given to the workers of the said project to serve as a powerful incentive for
the employees’ contribution in working for the association. 40% will be given
to the owners of the caves, the persons who own the property where the
caves for the project stand to give them a reason to allow the project in
utilizing their property and for opening it to the public. 10% will be given to the
association for continuously supporting and managing the project, they shall
use their shares for the benefit of their barangay and to the growth of their
association. Since the projected income doesn’t meet the minimum amount to
be subjected to tax, the project will no longer deduct tax into the net income
because the project is considered tax exempt. This is recommended to
equally distribute and fairly provide for all the parties who should be provided
for and should be benefited from the project.
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D. Training Programs
The ZamboLaSSS will undergo training before the operation will begin. All
employees will undergo training which will be given by the Department of
Environment and Natural Resources (DENR). Training will comprise of the
necessary activities that all employees and guests of the projects should
undergo and know. The DENR will provide the necessary information
regarding the number of days needed and the training programs that each
employee should undergo specifically.
Such activities may be, the giving of orientation before every activity will
begin, proper behavior inside the cave, use of proper equipments, proper
ways of executing the sport activity and the safety methods and rescue
process.
The tour guides, specifically, will undergo training by the Department of
Tourism (DOT) as well. Training that only the tour guides should and need to
undergo to exercise proper way of tour guiding. Local trainings such as:
Generic training and Specialized Guiding. The DOT will provide the
necessary information regarding the number of days needed and where it will
take place.
Lastly, the rescue and security members will undergo training in
General Hospital, Zamboanga City which will be given by The Health
Emergency Management Staff (HEMS). It includes local trainings such as:
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63