bp pattern draft
TRANSCRIPT
I. Executive Summary
Market
Our expandable bag organizer is now the newest twist to the
normal bag organizer. A bag organizer that can conform to the sizes of
any bag. Our market is like an open field still so available and not yet
congested.
Poche (expandable bag organizer) is different from the other bag
organizers in the market. It will revolutionize the bag organizer industry; it
will surpass the limitations of the old bag organizer. High quality flexible
full of new functions such as the ability to provide more pockets and other
functional additives.
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Business Description
At the front of the shop will be a wall display of the product with
advertisement at the same time. Upon entering the store is another
display cabinet containing products and a cashier will be positioned
behind these display cabinets which encloses an area for the store
personnel. There will be a close back-area intended for the storage of the
product of the company. A comfort room will be provided for the employee
as well as for the customers who will patronize the product.
Products
Sariya Company’s Poche (expandable bag organizer) will be
manufactured by the two (2) sewers hired by the company. It will be
mainly consist of five (5) pockets with additional pockets. Each of them
measures four (4) inches in width and five (5) inches in length. The bag
organizer will have similar styles with various designs of fabric used.
Product will be included with a pouch as a complementary for the bag
organizer.
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Management
Sariya is registered in the form of partnership. The partners namely
Mr. Arnold Nebres who has three (3) years’ experience in Marketing and
Sales. He served as Marketing Assistant of the Gotcha Foods Corporation
for two (2) years and one (1) year as Sales Coordinator of Toy Kingdom
Express of SM Lipa City, Ms. Diana Pagdagdagan, Ms. Cristina Elec, Ms.
Mariane Peleo, Ms. Cherry Ann Porto, Ms. Raquel Esteria, Ms. Madelle
Purificacion, Ms. Ave Gilainne Balazon, Ms. Kathleen Fatimah Pastor, Ms.
Christine Joy Silanga, Mr. Martin Manoling, Mr. John Nathanael Afable
and Mr. James Nicole Pimentel.
We have decided to have equal liabilities for the indebtedness of
our business. Likewise, profits and losses will be shared equally and/ or
according to an agreed percentage sharing.
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Financing Needs
Sariya Company needs atleast P187,715.00 to finance all the start-
up cost of the business. The plan to cover up the expenses of the
business is that each of the partners will invest P15,642.92 coming from
their personal funds. The firm and its founders have decided not to make a
loan from a bank because the investment needed is still a manageable.
II. Business Mission and Strategy
Vision Statement
Sariya Company will be a leading manufacturer of world class bags
and bag organizers in the Philippines by 2025 and in Southeast Asia by
the year 2040.
Mission Statement
To heighten the awareness of every women to be organized
with their stuffs. Thus, offering an expandable bag organizer would
help them to have an organized bag inside and out. Sariya
Company wants to improve the quality of life of women by making
this expandable bag organizer as a necessity in their daily lives.
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Philosophy
Sariya provides high quality product that will ensure
customer’s value for money.
Strategic Elements
Sariya Company’s strategy embodies several elements:
The company will be the first business that will offer an expandable
bag organizer in the market.
The company will be located in Tanauan City, a city located in
Batangas Province which comprised of a large population.
The expandable bag organizer will be offered in various designs to
fit the taste of every consumer.
The company would offer extra pockets to consumers who would
want to add extra pockets for their bag organizer.
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Strategic Objectives
To make on industry expansion through offering a company’s own
brand of bag by the sixth year of operation.
To expand additional location of the business after five years.
To be able to secure back-up suppliers prior to operation.
III. Sources and Uses of Funds
Start-Up Costs Summary
Start-up costs will be P187, 715.00 which includes acquisition of
property and equipments, lease payments, salaries and wages of
employees, initial working capital for 3 months, inventories, permits, and
other expenses.
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Sources and Uses of Funds
SARIYA COMPANY
Product : Poche (expandable bag organizer)
PROJECT COST (SUMMARY)
Acquisition of Property and Equipment / OthersFurniture & Fixture 10,000.00Business Permit & Licenses 10,000.00Pre-operating Expenses 5,000.00
Working Capital (approx. for 3 months)ProductionDirect Materials 28,875.00Direct Labor 30,000.00Indirect Materials 3,750.00Repairs & Maintenance 1,250.00Selling & Administrative ExpensesSalaries 67,050.0013th Month Pay 8,087.50Communication/Telephone 1,200.00SSS, PhilHealth, Pag-ibig 8,734.50Marketing/Advertising 500.00Office Supplies 1,250.00Electricity/Power 3,000.00Water 1,250.00Rent 12,000.00Transportation Expenses 1,500.00Repairs & Maintenance 250.00Waste Disposal 300.00Internet 1,650.00
Total 170,647.00Add: Contingency (10%) - approximately 17,068.00
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PROJECT COST (SUMMARY) 187,715.00
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SOURCE OF FINANCING
Contributions of the Partners
Afable, John Nathanael 15,642.92
Balazon, Ave Gilainne 15,642.92
Elec, Cristina 15,642.92
Esteria, Raquel 15,642.92
Manoling, Martin 15,642.92
Nebres, Arnold 15,642.92
Pagdagdagan, Diana 15,642.92Pastor, Kathleen Fatimah 15,642.92
Peleo, Mariane 15,642.92
Pimentel, James Nicole 15,642.92Porto, Cherry Ann 15,642.92
Purificacion, Madelle 15,642.92
__________TOTAL 187,715.00
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IV. Products
Sariya Company will sell the Poche (expandable bag organizer)
primarily in Tanauan City, Batangas which is a fast-developing City of the
province of Batangas.
Company Locations and Facilities
Sariya Company chose to reach the potential customers in
Tanauan City, Batangas through leasing a commercial space. In this
matter, the company will easily reach its target market because the
location is within the center of the city itself with residential houses,
business establishments, schools and universities.
Products
Sariya Company innovates a bag organizer. Normally, a bag
organizer differs in accordance to the size of the bag. Existing sizes are
small (5 pockets), medium (6 pockets), and large (8 pockets). Our product
Poche (expandable bag organizer) is capable of fitting into different bag
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sizes whether it is small, medium or large. It’s like having 3 bag organizers
all at the same time.
Poche (expandable bag organizer) have 5 pockets as the base and
3 detachable pockets as additional pockets to fit if the bag is bigger. The
size of each pocket is 4” L x 5” H. It can hold pens, keys, small notebook,
cellular phone, eye / sunglasses, hairbrush, perfume, etc. To avoid
messiness inside the bag, we are including a small bag / pouch to hold
items such as make-up / cosmetics which has 6” L x 7” H.
V. Markets and Competition
Sales Trends
Sariya Company after its first year of operation will increase its sales by
21.25%, this trend of increase in sales will continue. On the 5 th year the
company’s sales will increase to 55.10%.
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Industry Analysis
In this fast paced world where things seem to be instant, where
sped is becoming the name of the game it is important to find ways to
keep things organized.
The industry for the bag organizer is not well known because there
are few producers in the Philippines. Most of the producers are not known
and are of small scale enterprises mainly marketing their products through
the internet, yet there are also some large brands in the industry that
market their organizers through malls and other retail outlets.
Like other industries where women are the chosen target market,
the bag organizer industry is influenced by current trends and styles of
what is fashionable and stylish. Style is really a factor for the target market
of this industry but quality and functionality are of the same importance.
The market for this industry is broad, large and still growing larger
yearly. The growing demand is not satisfied by the few producers, the
absence of the producers motivate our firm producers. The absence of the
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producers motivates our firm to go and penetrate the already existing but
still open market.
SWOT ANALYSIS
STRENGHTS
A new innovated product
There is minimal number of sellers makes an open and uncongested
market.
Good quality
Reasonable prices
WEAKNESS
Poche is completely new products and our brand is unknown.
Most of them customers avoid using trying new products.
Different taste and preferences of people.
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OPPORTUNITIES
To produce an expandable bag organizer in the market.
Can offer job opportunities
A source of information and knowledge.
Possibility of good profits.
To be known in the business world
Expansion/ and extension of the product.
THREATS
Imitation
A small change in the focus of our competitor might wipe out any market
position we achieve.
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Suppliers
The raw materials used for the product will be supplied by:
DOUBLE A CURTAIN STORE
PasilioV 24-26 L 47-49
Yangco Market, Ilaya, Binondo, Manila
02 242-2820 or 0917-886-2880
FLOR TEXTILE STORE
Yangco Market, Ilaya, Binondo, Manila
02 241-8367
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Market Analysis Summary
Tanauan City is a neighboring city of Sto.Tomas and Lipa. The city
is the hub of a metropolitan area with students and working girls of 45,674
people ages 16-60 years old as of population census in the year 2010.
There are many schools and universities in Tanauan. Many offices related
to the city government and a booming business community.
Tanauan City has one of the highest percentage of college students
and working girls and is generally regarded as one of the progressive city
in Batangas.
Poche (expandable bag organizer) is an ideal business for
Tanauan City given a market of this size and demographics.
The business has a potential to more than P1.5 million in gross
sales by the 5th year of operation.
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Competitive Analysis
Most of the people in Batangas are not aware of a bag organizer,
although it already exists in the market. The lack of awareness is due to
the lack of sellers, people do not really have a mental picture of the
product. The minimal number of sellers makes an open and uncongested
market. This gives us the freedom and flexibility in pricing and allows us to
launch activities to create awareness.
There are companies that are selling bags with numbers of pockets which
is common nowadays in the market. Those kinds of bags are seen at
cose, jellybeans, heartstrings in different department stores. On the other
hand, some of them sell their products through the internet. The internet
will enable us to reach a large number of customers that we would not be
able to reach using a stall.
Though the internet enables us to reach more customers, it also entails
additional cost for delivery.
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Competition and Buying Patterns
Since the consumers in Batangas are not familiar with bag
organizers, certain efforts are needed to familiarize the people.
Promotional activities have to be launched to introduce the product.
On the other hand, customers today are more practical in terms of
pricing, quality and styles. Buying a low price product which near out on a
single use that is so sickening for the Filipino buyers who want to save
money.
VI. Marketing
Marketing Strategy
Sariya Company will promote the product Poche through the use of flyers
that will be distributed to people and tarpaulins containing the actual
picture and details about the product. Another plan is to join different
activities for teen entrepreneurs especially in public places like malls.
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The use of internet will be maximized by creating a website where we
could provide the consumers with information about our product and
persuade them to buy our product.
Target Markets and Market Segments
Our target markets are women with the age of 16-60 years old
specifically students and working girls that have the purchasing power.
The potential customer represents a demographic group of people who
are employed and have the capacity to buy. With regards to this, we as
the producer may easily come up with new ideas to address the needs of
our customers.
Pricing Strategy
Sariya’s Poche (expandable bag organizer) will be offered at the
price of P285.00. The company used the “cost-plus pricing method” as the
basis of the product’s selling price. This pricing policy determines the cost
of the goods to the company, adds a percentage to cover expenses and
profit, and arrives at the selling price.
It was also based on the P270.00 standard price in the market, but
it does not mean that their product has the advantage on price. The
company’s price is more affordable for the consumers in the sense that
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the market’s existing bag organizer has standard sizes for a certain bag
sizes. Thus, acquiring the different sizes of bag organizer is way much
more expensive. Sariya’s Poche (expandable bag organizer) can fit
different bag sizes because it is expandable. It’s like having 3 bag
organizers for the price of one.
Promotion Strategy
Sariya Company will promote its product through:
Promotional flyers will be distributed to all customers.
An additional item such as pouch will be included for every
purchase of the Poche (expandable bag organizer).
Demonstration through the use of E – Communication programs.
This will be done through the help of technology and also by
promoting using of internet and by texting common friends to
market the product.
A store window display to call the attentions of the passersby.
Participation through trade fares and exhibitions.
Offered Promos to Customers:
Buy 3, get 9 freebies – when a customer purchases three (3) bag
organizers within nine months, automatically, the customer will get
one (1) free coin purse.
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Bulk Buying Program – the customer that will buy at least fifty (50)
bag organizers will receive 1 free item in every ten (10) pieces
bought, thus, a total of five bag organizers in every bulk purchase.
Distribution Strategy
Primary distribution of Poche (expandable bag organizer) is through
leasing a commercial space as the store itself.
Secondary distribution is through the use of a sales agent.
Additional distribution will be through the use of internet.
Sales Projections
Sales forecast are based on projections made for the company’s
sales. There is very little threat from competition that may affect sales. Our
sales are mainly from the direct selling, through the agent sales and sales
derived from the internet
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Sales Forecast
SARIYA COMPANYProduct: Poche (expandable bag organizer)
SALES(In peso)
YEAR2011 2012 2013 2014 2015
Units sold in pieces 2,850 3,570 4,170 4,770 5,940
Selling price per piece 285.00 290.00 295.00 300.00 305.00
SALES 812,250.00 1,035,300.00 1,230,150.00 1,431,000.00 1,811,700.00 (to income statement)
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VII. Management
The success of the business depends on the management of the
company. All people in the organization will dedicate their skills, abilities, talents
and acquired knowledge. The growth of the business lies with the performances
of the management team together with their subordinates. Job specification of
each position should clearly identify to avoid the poor performances. It is
necessary that each member of the management will be responsible with each
duties and assigned tasks.
The management team composes the following with their respective
duties and responsibilities:
General Manager is responsible for all areas. The general manager is
responsible for effective planning, delegating, coordinating, staffing, organizing,
and decision making to attain desirable profit making results. They are primarily
responsible for guiding employees in achieving the goals and ambitions of the
organization. They ensure that all processes and practices are working in a
proper manner for an organization.
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Production Manager is involved with the planning, coordination and control of
manufacturing processes. A production manager ensures that goods and
services are produced efficiently. They ensure the correct amount is produced at
the right cost and at the right level of quality.
Production Supervisor works under the direction of a manager to make sure all
employees in a particular area of a factory are producing as much as they are
expected. A production supervisor also sees that the conditions for work and
production are optimal, both for the people involved and in what respects to
waste and quality.
Purchaser is responsible for ordering inventory, supplies, equipment and
services for all departments and divisions. The purchaser is responsible for
securing the best price for all purchases without jeopardizing quality. The
purchaser is responsible for generating and submitting purchase orders in
accordance with the company policies and procedures.
Quality Assurance Inspector works primarily involves sampling, measuring and
verifying that manufactured products meet pre-determined quality standards.
Utility and Maintenance Personnel shall be responsible in maintaining wellness
of the condition of the utilities, machineries or equipment being used in the
production. He keeps the premises in proper order and use appropriate materials
and equipment to complete assigned work at established procedures.
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Production Operators is responsible to maintain the production process so
work continues in a safe and productive manner. These duties may include
staging materials for an assembly line, recording production statistics, monitoring
equipment operation or assigning tasks to production staff.
Sales and Marketing Manager is responsible in analyzing, planning and
implementing marketing and sales activities. They also monitor how target
markets respond to marketing efforts. Ultimately, their goal is to increase profit
and retain loyal customers.
Marketing Personnel shall be responsible in creating advertising, good public
relations and an intense dedication to informing the public about a product's best
qualities. A marketing assistant's exact responsibilities vary by company, but the
basic elements of the job are the same everywhere.
Sales Representative is responsible for selling products to the consumers,
usually within a specified geographical location. They also have to be energetic,
friendly and enthusiastic, and have a positive attitude.
Accountant handles a variety of issues dealing with money, finances, profits,
expenditures, payrolls and sales. An accountant's duties can vary greatly
depending on his client and his client's financials. An accountant's job can range
from performing audits to ensure an individual or business is being truthful in its
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tax documents, to handling the payroll of a small business, to analyzing a
business' ledger, or overall financial health.
Budget and Control is responsible for the handling and controlling inflows and
outflows of cash by checking daily cash sales and even credit transactions. He
also prepares records and releases payments for the salaries of the employees.
Human Resource Development Manager shall be responsible for implementing
strategies and policies relating to the management of individuals. They shall
carry out a thorough job analysis to determine the level of skills/technical abilities,
competencies, flexibility of the employee required etc.
Research and Development Officer communicates the strategic plan to
subordinates in regard to business expansion, acquisition and marketing. He sets
goals for attracting new business, and guides the development staff in the area of
product research and development. The business development officer also
formulates focus group research and testing to determine how a new product will
be received.
Security Officers maintains security and safety of people and property in
assigned work place area. He keeps records to incoming and outgoing
employees and also visitors.
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VIII. Financial Data
Financial Plan
Sariya Company will finance its growth through cash flow.
Expansion will begin in fifth year that will include adding another location,
an increase in corporate sales, and capital expansion through additional
investment to support the introduction of our own brand of bags.
Seasonal Data
Sariya Company’s Poche (expandable bag organizer) would be
much viable in the months of June and July for the reason that our product
is suited for students and professionals. December could be also a
saleable month because our product could be a gift item suitable for the
season.
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Break-Even Analysis
The tables and chart shows break-even analysis for the first year of
operation. The producers require sales at approximately P625,919.00 for
the first year alone. General and Administrative expense depreciation
which amounts P443,088.00 and gross profit of 70.79%.
Break-Even Analysis
P443,088.0070.79%
= P625,919.00
Projected Profit and Loss
Profits for the next five (5) years are projected as follows:
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2011 : P 575,011.252012 : P 723,614.002013 : P 866,670.452014 : P 994,824.542015 : P 1,288,289.45
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