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Case Study(Aficionado Germany

Perfumes)

Prepared by:De la Merced, Leinard

Maceda, Sorzox

Prepared for:Prof. Cecile Respall

Business MathematicsMon. 2:30pm -5:30pm

C a s e S t u d y : A f i c i o n a d o G e r m a n y P e r f u m e s | 2

1.0 Overview

Looking good and presentable to everybody is a constant necessity that people are increasingly being aware of. Perfumes and colognes are those we may consider essentials into being pleasing not only to the eyes but also with our scent. Venturing out into a perfume business is what we would like to pursue and seek profit from. As we took into study its process and overall profitability, it is indeed a possible success through gradual development.

We chose to be a dealer of Aficionado Germany Perfumes, one of the country’s leading perfume manufacturer proudly owned by a Filipino. The said company had a very satisfactory background since its start. In addition, they are continuously expanding and making gains throughout local and global markets. They are also increasing their line of products by including lotions and soaps as well as a separate clothing line.

The products that are to be sold are perfumes which are already mixed and bottled by the company. Other products are also included in the package and perfume kits are made available.

The target market for the said products goes into a wide range; including adults, young professionals, teenagers, kids and the likes. The consumers are usually consuming or purchasing perfumes for personal use and enhancement of self-esteem as it adds up to the good impression that they receive from other people such as colleagues or family members and friends. Other people may use the product for luxury and social stability.

Social media is one of its means of advertising besides the print media and commercials. This is a good strategic move that doesn’t cost too much and saves advertising expense for the part of the company. It is also a smart move due to the fact that most of the people spend their time on surfing the internet giving them a more competitive edge over competing brands.

We also wish to grab the opportunity to share further the success of this business and its reputable name by being a part of it. For we know that working is not always just about selling products and gaining money, but also providing equalled service and help to the community and country.


2.0 Company History:

Joel S. Cruz or “Joel” to his family and friends is the sixth among the seven children of Mr. and Mrs. Dionisio Cruz. Having spent all his schooling at the University of Santo Tomas from elementary to college and honoured with Loyalty Awards, he graduated with a Bachelor of Science degree in Psychology from the University of Santo Tomas. Driven by his passion to pursue creative undertakings and business skills, he became an entrepreneur instead of becoming a doctor. Joel found it equally fulfilling, if not even more.

With his passion for fashion, Joel ventured into importing apparel from Hongkong and Bangkok in 1986. In 1987, he established Joel Cruz Enterprises Inc. (apparel), manufacturing and selling apparel to leading department stores in Metro Manila. In 1997, with the glut of apparel goods from China and Thailand, the company saw the opportunity to switch to the perfume business. In 1999, Joel engaged in another business venture establishing Joel Cruz Enterprise-perfumery. This was the beginning of big things to come. Retailing is just the start of everything.

On September 5, 2000, Central Affirmative Co. Inc. was born on the process of acquiring license to distribute the perfume brand “Affirmative” or popularly known as “AF”. In 2001, the company laboratory was officially registered by the Bureau of Food and Drugs (BFAD now FDA) and established as a manufacturer and distributor of Aficionado Germany Perfume brand. In 2002, Aficionado Boutiques were opened nationwide to reinvigorate the former apparel business. In 2006, the company operated a 2,000 sq m plant in Sterling Industrial Park, located in Meycauayan, Bulacan.

After 5 years in business, the Aficionado brand was opened for franchising opportunities and this catapulted the company to new heights. The Direct Dealership, Domestic and International Distributorship, Tolling, Contract Manufacturing and Personalizing services were established as corporate units and further spurred growth for the company. The company supplies products to major supermarkets, drugstores and convenience stores nationwide.

On June 22, 2007, the company opened Signatures by Joel Cruz Inc. with the brand Joel Cruz Signatures engaged in a new line of perfume and personal care products to scented home products.

The company has spawned into a family of brands: Aficionado Germany Perfume as the leading Philippine made perfume in the market. The brand Joel Cruz Signatures offering personal care products and beyond. On March 2010, the apparel business was rebranded to Aficionado-Your Fashion and Scents Store and registered with the IPO in September of the same year.

The company acquiring new technology in manufacturing and implementing systems upgrade like SAP (ERP) and an integrated supply chain is geared towards the year 2020 as a small-medium sized company to achieving bigger success and growth.

CACI has gone global having distribution centres in Dubai and Abu Dhabi, UAE; Saudi Arabia, Iran, Japan, Ireland, Denmark, Los Angeles, Saipan and continues to expand business in the Asian region in other ASEAN member countries. CACI is posed to expand its business in the Philippines and globally. It is geared towards achieving international standards with manufacturing processes towards producing the highest quality personal care products to offer to consumers.


CACI has earned several recognitions by major award giving bodies such as the Asian Star Brand Award, The National Shopper’s Choice Award and The Philippines’ Marketing Excellence Award, the Philippine Retailers Association Hall of Fame Award and the 32nd Agora Awards Nomination for Outstanding Achievement in Entrepreneurship among others.

It is a clear vision that guides the company to successfully pursue various ventures -“To be known as the leading manufacturer and distributor of perfume, health and beauty products”.

2.1 Mission:

To develop quality products for global distribution at the right cost and at the right time. To satisfy our stakeholders (stockholders, franchisees and investors) with good profit. To provide our employees with humane working conditions and security for their

personal and professional growth. To be socially responsible to our community especially to those who belong to the

marginalized segment of our society.

2.2 Vision:

We will be globally known as the leading manufacturer and distributor of perfume and personal care products.

2.3 Core Values of the Company:

Excellence and Quality Accomplishment Dedication, Commitment and Loyalty Respect and Honesty Teamwork

2.4 Type of Business:

Manufacturing and Retail

3.0 Capital Liquidation

The starting capital for the dealer package is Php. 30000. The package includes all necessary items and products needed for the selling process.

To further elaborate here are the things that are included in the package:

Aficionado Package

Eau de Toilette -85 ml (36 pcs.) 60 ml (18 pcs.) 25 ml (12 pcs.) 10 ml (12 pcs.) Bath and Body Spray (20 pcs.)


Bath and Body Cologne (16 pcs.)

CELEBRITY SCENTS 50ml

Dennis (2 pcs.) Lovi (2 pcs.) Jason (2 pcs.) Erich (2 pcs.) BOY ABUNDA Eau de Toilette

for all sexes 50 ml (2 pcs.) 30 ml (2 pcs.)

JOEL CRUZ SIGNATURES

Bath Soap

- 90 gms. (12 pcs.)

Shampoo

- 130 ml (8 pcs.)

Conditioner

- 200 ml (8 pcs.)

Lotion

- 60 ml (12 pcs.)

Shower Gel

- 60 ml (8 pcs).

Foot Spray

- 100 ml (8 pcs.)

Intimate Spray

- 15 ml (6 pcs.)

Dealers Package Kit

Tarpaulin size: 1.5 x 2 / 2 X 5 Press Kit

- Company Profile


- Dealer’s Price List

- Network Organization

- Dealer’s Terms & Conditions

- Application Form

Merchandising Materials:

- Aficionado Gym Bag

- Aficionado R/N T-Shirt

- Membership Card w/ lanyard

- Celebrity Endorsers Paper Bags M (3 pcs.) , L (2 pcs.)

- Sampler 10 pcs. Vials

- Aficionado Plastic Bags S, M, L (100 pcs. Each)

Another Php. 5,000 is to be allocated for buying other items that may be needed for setting up the business at home. We will also allocate Php. 5,000 for safekeeping just in case that an emergency arises.

Allocation Amount

Initial Investment(Aficionado Sales Leader Package)

Php. 30,000

Other expenses (print ads) Php. 5,000

Contingency Fund Php. 5,000

Total Php. 40,000

4.0 Product

Celebrity Scent: Jason

Scent Overview:

For the typical teen, young adult or adult who is witty and knows how to mingle with different kinds of people, loves going to parties and social gatherings and exploring new things in life of a young adult. Good for the active, sporty, casual, “always on the go” person, great for gym buff.


Celebrity Scent: Erich

Scent Overview:

For the typical girl-teen, young adults, who love hanging out with her peers, smart, and bubbly going to social gatherings often involves her with social issues revolving around teenagers. Young, Smart, Sweet and Bubbly. The ultimate statement of femininity.

Eau De Toilette for Men50 mlScent: Fougere, Aromatic, Citrus and Fruity Natural, Outdoor

Eau De Toilette for Women50 mlScent: Fruity and Green


SPORTY

Scent Overview:

SPORTY is our version of f-2 inspired by of POLO SPORT with fern, aromatic, citrus and woody notes in 55ml BLUE bottle. The Body and Bath Spray is best for kids, tweens and teens who are sporty, joyful and playful and are neat and conscious of their personal hygiene, for in their age they start to explore teenage life as they grow in a fast paced life.

Overall the products are satisfactory in quality and meets the needs of the consumers.

4.0 Marketing Strategy

Advertising for the products and dealership offers will be done through use of social media. We will also post advertisements on broadsheets and tabloids to create further awareness. Likewise, will also hand out flyers and information sheets to attract prospect customers and business partners.

Since the brand has already established a reputable name in the local perfume industry, we are optimistic that people will buy products from us, and share the opportunity of earning profit through being a dealer also.5.0 Programs Offered

a. Franchise Program

Sporty Bath and Body Spray55 mlScent: Oriental, Citrus and Amber


TERM OF FRANCHISE: 3 years

FRANCHISING SINCE: 2004

APPLICATION PROCEDURE: Submit Letter of Intent

PREFERRED SITES: Malls & Commercial Complex

NOTE: Rates are subject to change without prior notice.

EMAIL US: [email protected]

A Proud Member of

b. Dealership Program

DEALERSHIP PROGRAM is open to each and everyone (housewives, teachers, employees, freelancer, sales executives, entrepreneurs, students and professionals) who can be a part of our wide network of happy and successful people. "Endless opportunities await you here!"

REGISTER NOW!

To register, Package is Php30,000.00 for GOLD Package and Php7,000 for SILVER Package

Annual Membership Renewal of Php 500.00 (Applicable to ASL & ASGD only) Dealer takes care of the freight expense and we will facilitate shipment through your

contact forwarder; we can recommend a forwarder if you wish No territorial exclusivity Terms & Conditions apply signed by both parties Cash transactions through wire/bank transfer to CENTRAL AFFIRMATIVE CO., INC.

Account.

Unlimited source of earnings through:

1. Direct selling which generates big profit2. Referral commission through recruitment3. Networking benefits through rebates4. Additional Rebate incentive through Network Group Sales


Registration requirements:

1. Registration form (duly accomplished & signed)2. Information sheet3. Valid Identification card (Any government ID, Co. ID)4. Proof of Billing5. One (1x1) & Two (2x2) Photo6. Avail of the initial Dealer’s package: (AD) Php 7,000 or (ASL) Php 30,000

Other required Fees:

Annual Fee: P 500.00 for network subscription (Applicable for ASL & ASGD only).

c. Tolling Program

CUSTOMIZED & CONTRACT MANUFACTURER

Central Affirmative Co., Inc. (CACI) located in Sterling Industrial Park at Meycauayan, Bulacan is the manufacturing plant of:

AFICIONADO Germany Perfume and JOEL CRUZ SIGNATURES.

We are happy to offer you our new line of services for local & international:

Contract / Toll Manufacturing Personalized and Customized Services purposely made according to your own set of

parameters. It includes a packaging that suits your needs for local and international distribution.

We offer Corporate Give-aways & Campaign Give-aways to the following accounts/institutions:

Companies/Businesses Hotels & Resorts Spa & Salons Facial Care Centers & Skin Clinics, etc.


AFICIONADO TOP SCENTS COLLECTION

OUR VERSION OF:

Eau De Toilette for MEN

F1 - POLO SPORTF2 - TOMMY BOYF4 - HUGO BOSSF10 - ENERGIZE BY HUGOF16 - NEW HAPPY

Eau De Toilette for WOMEN

F35 - ROMANTIC WISHF44 - PARISH HILTONF56 -RALPHF60 - J.LO LIVEF68- FANTASY BY BRITNEY SPEARSCologne

FANCY - ROMANTIC WISH


SPORTY - POLO SPORTFRESH - RALPHDELIGHT - J.LO LIVE

MORE SCENTS AVAILABLE ....

You can choose from our broad collection of fragrancesBe creative…Be unique...Personalize it…

For Inquiries:

Tel. #: (+632) 740-8888 local 500 & 513Mobile phone # : (+63) 922-8175172(+63) 919-6644195E-mail: [email protected]@joelcruzsignatures.com.ph

d. Local Distributorship Program

LOCAL DISTRIBUTORSHIP PROGRAM is open to businessmen and traders servicing the Luzon, Visayas and Mindanao areas.

Contact:

Jo Aloroy – Account ManagerMobile Number: 0922-817-1482Email: [email protected]

Reference: www.aficionado.com.ph

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