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1.0 EXECUTIVE SUMMARY

Mr. Image is a graphic designs and multimedia services firm, a partnership owned and

operated by Ariel Cabinbin, Niel Sumagaysay, and Ian Jay Tomas. Mr. Image will operate out of

a small office at Pantua Village, Baranggay Zone 3, Koronadal City, South Cotabato.The firmoffers video editing and T-shirt printing services. They will also offer making of customized

memorabilia such as tumblers, badges, mugs and bag tags. Printed T-shirts and memorabilia

will be available for sale.The firms targeted customersincludethe people, institutions and

organizations of Koronadal City primarily NDMU and STI as these are the most accessible

potential customers in the firms location.

Mr. Image aims to offer cheaper yet excellent service with a personal touch, and offering value-

added services related to the customers.The firmwill maximize the utilization on networking

and referrals most importantly its advertisements to develop visibility for the company.Through all of these, prospective customers will turn the figures of sales, shown in figures in the

financial plan, into reality. Moreover, the payback period is eight (8) months and the firm will

generate P298,633.98 net income in year three.

Table 1.0Highlight in the Income Statement

1

-

200,000.00

400,000.00

600,000.00

800,000.00

1,000,000.00

1,200,000.00

1,400,000.00

1 2 3

Sales

Gross Profit

Net Income

Year Year Year

P

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1.1 Vision

Mr. Image plans to become known as the most profitable premier graphic designs and

multimedia services firm in the Koronadal City after three years.

1.2 Mission

The Mr. Images mission is to provide the customers with the best and practical graphic

designs and multimedia services in the city. We aim to offer cheaper yet excellent

service with a personal touch, and offering value-added services related to the

customers.

1.3ObjectivesThe objectives of Mr. Image include:

1. To be profitable within the first year of operations.2. To achieve customer satisfaction by providing services exceeding customer's

expectations.

3. To make the customers or clients feel at home transacting and a part of thecreative process.

4. To create a firm that provides the target customers with quality services andprovides the owner with a flexible, creative, fun, and profitable business

opportunity.

1.4Keys to SuccessThe keys to success are:

o Professionalismo Creativity and Competenceo Love of worko Good customer relationship

2.0 COMPANY SUMMARY

2.1Business Description

Mr. Image is a graphic designs and multimedia services firm, a partnership

owned and operated by Ariel Cabinbin, Niel Sumagaysay, and Ian Jay Tomas. Mr. Image

will operate out of a small office at Pantua Village, Baranggay Zone 3, Koronadal City,

South Cotabato.

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2.2 Background

The owners, Ariel, Niel, and Ian, are currently 5th

year Bachelor of Science in

Accountancy students of Notre Dame of Marbel University. They are all knowledgeable

and well-equipped in graphic designing.Ariel is good in managerial skills evidenced by

the various school events he has facilitated and managed. Ian has designed various

event invitations and program in the Accountancy department. For the past school

years, Niel has rendered video-editing services to different organizations inside and

outside NDMU. These have made him a premiere video-editor in the campus for various

events.Hence, their skill set and capacity as a creative graphic designer and multimedia

service provider in the campus justify their partnership creating Mr. Image.

2.3 Business Name

The partnership is named as Mr. Image was the idea of Ariel approved by Niel

and Ian. The tagline We create the BEST simply because we wanted to create the

image of best graphic designing and multimedia services business in the city. Thus,

Mr. addresses the founders and Image represents the graphic design and

multimedia services being offered.

2.4 Business Logo

The overlapping letters M & r represents the founders working together asthey operate the partnership. Grammatically, theperiod emphasizes the Mr.

addressing the founders. The color transition of the Mr. from dark blue to light blue

means transformation from good services to bestservices which is undertaken as the

firm operates. The two horizontal lines emphasize Mr. Image rendering Graphic

Design and Multimediaservices.

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2.5 Start-up Funding

Table 1.2 Start-up Expenses

Note that under Other Assets are as follows:

Electric Fan P2400

Furniture and Fixture 6500

Internal refurbishment 2000__

Total P10,900

Start-up Expenses

Business Permit and Licensing Fee 5,000.00Posters and Flyers 5,000.00

Radio Advertisement 5,000.00

Office Rentals (3 months) 10,500.00

Internet Subscription (3 months) 3,000.00

Total Start-up Expenses 28,500.00

Total Start-up Assets

Cash Required 8,671.36

Start-up Supplies and Inventory 36,833.08

Promotional Products 5,000.00

Laptop 52,000.00

Accumulated Depreciation Laptop (52,000.00)

Other Assets 10,900.00

Long-term Assets 30,095.56

Total Assets 91,500.00

Total Requirements 120,000.00

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Table 1.3 Start-up Funding

Start-Up Funding

Start-up Expenses to Fund

91,500.00

120,000.00

82,828.64

28,500.00

8,671.36

-0-

20,000.00

20,000.00

33,333.33

33,333.33

33,333.33

100,000.00

120,000.00Total Funding

Total Liabilities

Partners Capital

Sumagaysay, Capital

Cabinbin, Capital

Tomas, Capital

Total Planned Investment

Long-term Borrowing

28,500.00

Start-up Assets to Fund

Total Funding Requirements

Less: Assets

Non-cash Assets from Start-up

Cash Requirement from Start-up

Less: Start-up Expenses to Fund

Cash Balance on Starting Date

Liabilities and Partners Capital

Liabilities

Current Borrowing

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3.0 SERVICES AND PRODUCTS

Mr. Image offers multimedia services including video editing and video compilation. The

firm also offers T-shirt printing services including printing white and colored T-shirts.Another is

making of customized memorabilia such as tumblers,badges, mugs and bag tags. Printed T-

shirts and memorabilia will be available for sale in the firms office.

Figure 2.0 Sample Designs and Outputs

White T-Shirts

Colored T-Shirts

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Badges

Tumblers

Bag Tags

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Mugs

4.0BUSINESS ENVIRONMENT ANALYSIS4.1 Industry Analysis

4.1.1 Industry Description

This industry analysis will aid in researching the industry in which Mr.

Image Graphic Designs and Multimedia Services will be located. This is a graphic

design and multimedia industry. We can also determine how the company will

compete in the industry.

4.1.2 Industry Trends

Koronadal City is a 1st class component city in the Philippines. It is

endowed with rich natural resources and has the potential of becoming one of

the fastest growing local economies in the country. Since it is a growing economy

it is expected that many businesses in the city are to be established. Graphic

design and multimedia is a growing industry in the said locality. According to an

article about Graphic Designs and Multimedia Businesses, it is expected that the

graphic design and multimedia will increase to 13% in business from 2008 to

2018. This growth is due to constantly increasing demand for such services and

other multimedia applications. Graphic designers with strong animation and

design skills face the best prospects. Moreover, competitors in the city pose a

low threat because it is still a growing industry that means that competitors are

expected in the future. According to the Department of Trade and Industry

graphic design and multimedia industry is still new in the locality. With a large

population in the city, there is a high demand for such skills in order to adapt to

the fast changes in technology.

http://en.wikipedia.org/wiki/Philippineshttp://en.wikipedia.org/wiki/Philippines

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4.1.3 Profit Potential

Profit potential can be determined by performing a five forces analysis.

There are five forces that threaten the performance of the graphic design and

multimedia industry: rivalry, buyers, substitutes, new entry, and suppliers. A

more in depth analysis follows.

Substitutes pose a medium threat to the industry. Substitute to graphic

design and multimedia services include graphic design software that will be able

individuals to create their own designs without the need of our services.

Although, there are graphic design software that will aid their needs, skills and

knowledge are required to have such quality output.

New entrants pose a low to medium threat to the industry. This is a

growing industry, so there will likely be many new entrants into the industry inthe future because it is ripe for innovation. However companies entering will

still face challenges. To compete with this industry, companies would need large

amounts of funding. They would also need marketing and networking in order

to gain consumer knowledge and demand. New entrants would also have to

endure these expenses to differentiate their own products and gain the support

of consumers.

The industrys rivals consist of all businesses that produce the means of

graphics design. The threat of rivalry is somewhat low. The number and balance

of competitors is low. Since this is a relatively new industry that is just beginningto realize growth, there are no strong competitors. The fact that the industry is

growing is another reason that rivalry is low. Therefore, there is room in the

market for the new competitors.

Suppliers pose a low threat to the graphic design industry. Suppliers for a

graphic design can be easily obtained and the demand for this kind of industry is

growing. Since, it is still growing, the buyers for this kind of industry is relatively

not that much. There seems to be a large quantity of suppliers, so this is not a

large threat.

Buyers exert a somewhat strong force in the graphics design and

multimedia industry. In this case the buyers/customers are those who use and

purchase some form of products and services. Consumers have the option of

choosing where to acquire such services depending on their preferences.

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After evaluating the five forces model on the graphics design and

multimedia industry it can be concluded that most of the forces are moderate to

high, therefore threats in the industry could greatly affect industry profitability.

The only low force was rivalry among competitors, and this is because the

industry is growing. It is likely to grow more in the future therefore the industry

is ready for innovation. The graphics design industry is a realistic place to start

and be successful in a new venture.

4.1.4 Competitive position within target market

The graphic design and multimedia industry deals with direct, indirect,

and future competitors. Direct competitors are those who offer identical or

similar products, such as other graphic design businesses that are already

established. Indirect competitors offer close substitute products, such as

companies providing a similar means of services. Future competitors are thosewho are not yet direct or indirect competitors, but could be at any time.

Another competitor is the status quo. People are generally resistant to change,

and often would rather keep their money than spend it. To combat this, a

products utility must rise above the cost, and consumers must be educated.

Staying competitive with other companies in this industry will require

competitive price and quality, effective marketing, continuous improvement, as

well as a variety of other factors. Since this is a growing industry there are sure

to be new entrants into the market in the future.

4.2 SWOT Analysis

Strengths

A convenient office that is accessible to customers as well as gives off theperception of creative, quality design, implying a skilled service provider.

A unique combination of both creative and business sense. Cheaper products and services prices than existing graphic designs and

multimedia services businesses.

No competitor identified along the location of the firm. Working attitude of the owners is undeniably great. Payback period does not take years, only eight months to be exact.

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Weaknesses

We cannot accommodate bulk orders due to lack of adequate capitalIncreasingly limited amount of time for marketing activities as more and more

time is needed to finish projects because of limited manpower.

Opportunity

A growing market that does not seem to be focused on attracting a targetcustomer segment.

The ability to generate future business by leveraging the technologicaladvances of the Internet.

An industry that is not significantly affected by slumps in the economy. An industry that can help to boost our local economy.Threats

Competition from local competitors who offers same type of products andservices.

Significant increase in ease of use of graphic design software that allowsindividuals to design their own graphical pieces.

5.0 Marketing Plan

5.1 Target Market

The Mr. Image will be targeting the primary and general market. The general market

includes people, institutions and organizations of Koronadal City.

People include students, teachers, personnel, employees, employers,professionals, and all other normal persons not an institution and an

organization in nature. Institutions include schools, hospitals and more. Organizations include government organizations and sectors, firms/businesses

and more.

The primary markets are NDMU and STI, includingall potential customers from these

institutions. The location of NDMU and of STI is very close to the location of the firm

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that is at Pantua Villagewhich is very accessible to them as the firms primary markets.

Aside from the location, the demand on the services offered by Mr. Image is higher in

schools vicinity compare to other commercial locations. According to our interview with

the manager of Campus Art, a premier graphic designing firm in the city, approximately

80% of their sales represent the sales to customers from schools.Additionally based on

our personal experiences and observations as students, the graphic designs andmultimedia services are in demand to students for school requirements, school events

and other personal reasons such as trends and likes.

5.2 Marketing Program

The firm will be using the social network sites to advertise its products and services

such as facebook, multiply, twitterand tumblr.According to Social Media Statistics,

93.9% of the Filipinos used social networking sites. Thus, this would be the most

effective means of advertising the firm.Posters and flyers will also be posted and

distributed primarily along Alunan Avenue and Pantua Village. Radio advertisement will

also be used.

5.3 Target Market Segment Strategy

Networking. The networking will be based on leveraging Mr. Images personalrelationships. Ways of networking include sending out notecards to all

acquaintances announcing the opening of the firm, periodically meeting with

the group of people personally acquainted with the founders such as

classmates, teachers, friends and others. This will establishworking network

and a means to find out who this person knows within the target market thatthe firm will try to turn into customers.

Client referral. Thenetworksthat the firm could establishwill be the source ofreferrals. Recognizing that referrals will be a good source of new customers,

the firm will work very hard to satisfy all of these customers. By making sure

that the firm will exceedcustomers expectations increasing the likelihood to

receive referrals from satisfied customers, the firm will be able to expand its

networks attracting public relations that will be the aid in achieving and

maintaining increasing sales.

Targeted organization and institution acquisition. This is the researching andstrategic formulation to attract a chosen organization and institution tobecome a customer aside from the primary market, NDMU and STI. The firm

will put together a list of 20-30 organizations and institutions that would be

excellent customers. Once these have been identified, the firm will devise a

strategy to target these companies as customers by initially determining what

value can persuade them. Eventually, the goal is to be able to meet with the

decision maker of the firm and present them with a portfolio of Mr. Images

sample service and product as well as the proposed value they can offer them.

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5.4 Competitive Analysis

Table 1.4Comparative illustration of Mr. Images product and services prices with the

competitors within and outside its location.

Located along Pantua Village Not Located along Pantua Village

Products and

Services (per unit)

Mr.

Image

No

Competitor

Campus

ArtIdentitee

IDEF

Studio

Multimedia

Video Editing P250 - - P300

Video Compilation P100 - - P200

Graphic Designs

White T-shirt Printing P180 - P200 -

Colored T-shirt

Printing P180-

P250 -

Printing without T-shirt P70 - P80-P100 -

Memorabilia

Tumbler P150 P200 P160 -

Mug P140 P200 P150 -

Badge P20 P100 P50 -

Bag Tag P45 P100 P60 -

Illustrated on Table 1.4, all prices of Mr. Images product and services offered

are lower or cheaper than those of the competitors. Thus, this justifies the firms aim tooffer cheaper yet excellent service.

6.0 OPERATIONAL PLAN

6.1 Location

It is vital that the graphics design business has a storefront facing onto the main

street. The goal is for the clients to be able to see the premises and lessen the difficulty

of finding the business location. We will be renting 4 by 8 square meters (See Fig. 1) fully

serviced space at cost of Php 3,500 per month. This would serve as a combination ofoffice, warehouse and manufacturing space for the business. Also, we will need to

spend Php 10,900 on internal refurbishing, including furniture and fixtures like chairs,

desks and other office furnishings. We plan to do some of this work ourselves.

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6.2 Choice of Location

We intend to locate within the Pantua Village, Zone III, Koronadal City (See Fig.

2), since this is close to the city center with a high density of both residential andbusiness premises. The pavement is wide, so people can stand and look in the window

without being in the way of other pedestrians. Among all the location available, this has

a lower rental expenses. Also, there is no competitor as to the services to be rendered

by the business in the location. It would also be accessible to students, specifically the

Notre Dame of Marbel students and STI students and some other residential clients of

Pantua Village.

6.3 Hours of Operation

The online shop will be available for 24 hours a day and orders through e-mailswill be checked daily. The business will be operating from 9am until 6pm to cater those

clients who are busy during the day. We want to be available so that the clients would

consider us as their first point of contact with an informed friendly service.

We believe that since our clients will mostly be students, off-peak-hours access

to our services is also a key way in which we can differentiate ourselves from other

graphic service providers.

6.4 Equipment

We will be using Epson Sublimation Printer which cost $440 (a total of Php

19,360), free of shipment from Epson Supplier Online. We will also be using a Button

Press used to make badges which cost $79.99 (a total of Php 3,299.56), from the same

supplier. Also, a separate sublimation heat press for mugs, plate, hat, and t-shirt which

cost $169 (or Php 7,436) is to be used to transfer prints from the sublimation paper to

the printing canvass.

We will also be using two Laptops, donated by the partners, one for lay-outing

the designs for printing and the other is for editing and compiling videos.

A telephone line will be installed, together with wireless fidelity (Wi-Fi)

connections, in the business premises to allow customers make orders through the

telephone or internet.

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As a graphics service provider, it is essential that we should be updated with new

trends so the designs and lay-outs will be based on what is new and trendy among the

target clients.

6.5 Labor

Organizational Structure

The partners will decide among themselves one as a managing partner, but all of

them would be basically in charge with the operations. The managing partner will be

responsible for overseeing the day-to-day operations of the business. There will be one

assigned in the reception area to welcome the customers and to answer telephone calls.

All the three partners are knowledgeable of editing, lay-outing, creating, designing the

products based on customers demand.

The partners shall divide any profit or loss equally. Withdrawals shall only be

allowed to each partner after six months of operation.

Our dress code will be one of our customizable printed shirts with our logo in it

to give customers that feeling that our shirts are wearable, durable and of greater

quality prints. We plan to start with a staff of three, which would be the partners. We

plan to be operating with an additional staff during the 3rd

and 4th

year of business.

6.6 Manufacturing and Service Process

6.6.1 Raw Materials and Key Suppliers

6.6.1.1 Printing Services

Most of our raw materials will be obtained from a single supplier

in Davao City, from Starmark Enterprises.

Managing

PartnerPartner Partner

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Total amount must be fully paid in their BDO account before the

delivery of orders.

Table. 2 Prices of Products bought from Supplier

Raw materials for printing will be obtained from the same

supplier, which includes different materials and textures for t-shirt

printing and also other materials like t-shirt, mugs, plates, tumblers and

etc, which would costs us a total Php 36,833.08, including the freight.

Such order composes of the starter print materials.

All raw materials will be stored at the office. There would be a

compartment within the office for storing the inventories.

6.6.1.2 Video-Editing and Multimedia Services

Most of the raw materials for this service would require

knowledge and creativity and nothing else, which is why internet

connection has a vital part for this service.

6.6.2 Finished Goods

All the finished goods will be stored at the office. Some of the products

will be displayed in the counter for sample purposes.

Order Distribution Process

Price QuantityWhite Shirts 75.00 1

Colored Shirts 85.00 1

Tumbler 60.00 1

Mugs 35.00 1

Badges 10.00 1

PVC Board 50.00 1

Rubber 5.00 1

Ink 2,199.56 4x100ml refi ll ink

Sublimation Paper 1,141.80 100 sheets

Order

Conceptualization

Gaining ideasfrom clients

Introduce owndesigns

Printing Distribution

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6.6.3 Order

Order can be done online or through our main office. Online orders are

through the official page in the facebook to be maintained by the business. An

order form shall be provided in the official page requiring the following

information from the customers: full name, email address, contact number,

product code/ color (provided in the official page), size (also provided in the

official page), mode of payment, shipping address, and additional message.

Order through the main office is done traditionally.

6.6.4 Distribution

6.6.4.1 Online Orders

For online orders, distribution of the product would be through To Go

shipping for customers outside Koronadal City. The lead time for online

orders would be 3 5 days after the date of order, depending on the

customization and number of orders. Freight cost would be inclusive in

the price of the finished product. Payment must be paid full through our

BDO account before delivery of the product.

6.6.4.2 Local Orders

For local orders, distribution of the product would take place in the

office. The lead time for local orders would be 2 days after the date of

order, depending on the customization and number of orders. Payment

would be at the time of distribution.

6.6.4.3 Bulk Orders

For bulk orders, the lead time would be 1 week for t-shirts ranging from

10-20, and 2 weeks for t-shirts ranging from 20 and above, after date of

order. Lead time may change based on the multiplicity and number of

orders above the quoted number.

6.6.5 Quality

The quality of the product will be measured through the number of

errors encountered per batch processing. The less error, the higher the quality of

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the finished product would be. The raw material used in making the finished

products is of high quality which is ensured by the supplier.

The quality of the product will be controlled through proper checking of

the quality of the raw materials used. The business would only purchase raw

materials from those suppliers who have already grounded its name in supplying

the raw materials needed in making the finished products.

Surveys are given to customers after 3 months of operations to evaluate

the quality of the products and services provided by the business. Comments

and suggestions are encouraged from clients to improve better the business.