Project Feasibility Study

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Project Feasibility Study
Project Background and History
To ensure the success of the feasibility study, it must be clearly understood how the project idea fits into the framework of the economic conditions and the general and industrial development of the country particularly if financial assistance is sought from a government agency such SSS, GSIS, or DBP. The project should be described in detail and the sponsors identified together with the reasons for their interest in the project. The following should be presented: A.) Project Background 1. Describe the project data. 2. List the major project parameters that serve as guiding principles during the preparation of the study : product and product mix, plant capacity and location,
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Data and alternatives 1. Describe data required in addition to the results of the demand and market study 2. Describe possible alternative sales and marketing programs b. Selection of sales programs and marketing strategy c. State reasons for selection of sales program 1. Detail the sales program 2. Presentation of the program (descriptively, using tables, graphs and maps as appropriate to show development throughout the life of the project) d. State reasons for selecting marketing strategy 1. Detail the marketing strategy 2. Presentation of marketing strategy 3. Product pricing 4. Promotional efforts during the pre-production and production stages 5. Organizational set-up of distribution and sales 6. Commissions or discounts on sales 7. After-sales facilities and services e. Estimate of sales revenue 1. Estimate annual sales revenues based on the sales program and marketing strategy f. Estimate of sales and distribution costs 1. Estimate of sales costs 2. Estimate of distribution costs

The following schedules may be prepared: Schedule X. Estimate of Sales Revenue
Products/ByProducts Description Quantity Year 1 Sales Revenue Quantity Year 2 Sales Revenue Quantity Year 3 Sales Revenue


Schedule XX. Estimate of production cost: Sales and distribution cost
Sales and distribution costs No. Qty. Unit 1. Item Description SALES COSTS merchants Training of salesmen and Advertising Unit Cost Total Cost

Travel Expenses …………….
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