I.
EXECUTIVE
SUMMARY
Business Profile
Name of the Business: J-GRAP
ENTERPRISES
Product Name: HANDBAG
ORGANIZER
Type of Business Organization: Partnership
Location of the Office: Brgy. Quarry,
Tacloban City
Proponents: Jhayson
Barbo
John Paul Dela Cruz
Alfredo Devocion
Glenda Monteroso
Ralf Naadat
Total
Project Cost: ₱
Loan: ₱
60, 000.00
Equity: ₱
162,662.65
II.
RATIONALE
Handbags play an essential role in
the life of modern women. These days, there is a large variety of stylish
handbags available in the market, one can choose any of them as per choice.
Women handbags are considered as a
fashion statement that can either break or make style. Using these stylish
bags, women can easily carry her important personal belongings along with her.
Many women carry handbags on all occasions, sometimes with nothing more than a
smartphone and makeup. The problem comes when women started to organize these
handbags since often times there will no space to store these handbags as a
woman’s closet isn’t just compose of handbags.
The proponents decided to design a
good handbag organizer to cater such needs for women. They decided to introduce
a handbag organizer with capabilities of storing 8 handbags per organizer.
III.
BUSINESS
PROFILE
NATURE OF THE PROJECT
The project focuses on creating
durable, comfortable, and affordable handbag organizer while still maintain its
artistic design. The business operation will cycle around making new designs,
production, and marketing.
NATURE OF THE PRODUCT
The handbag
organizer is made of non-toxic materials which ensures consumers’ safety and
the people around them.
MISSION
To provide a beautifully designed
handbag organizer to help women in their storage problems.
VISION
To
become a nation level supplier of handbag organizer carrying J-GRAP brand.
OBJECTIVES
The
J-GRAP LTD. is aims to:
1.) Introduce
and sell the handbag organizers to the residents of Tacloban City area at a
minimal and affordable price of per piece;
2.) Expand
market to other Cities like Baybay City, Ormoc City and Calbayog City.
3.) Increase
sales volume by 20-30% by the end of three (3) operating years; and
4.) Gain
foothold to introduce other products and varieties.
Location
The proposed production location will be
at Brgy. Quarry, Tacloban City.
IV.
ORGANIZATIONAL STRUCTURE
V.
MARKETING ANALYSIS, STRATEGY &
IMPLEMENTATION
Table 1 Target Market
|
Target Market |
Total No. Of Population |
Target Market |
|
|
% |
Total |
||
|
Tacloban City |
269, 814 |
50.2 |
135,446 |
Market
Response
|
Respondents |
Total Target Market |
Total No. of Respondents |
Handbag Organizer |
Percentage |
|
|
Those who showed interest to the product |
Those Who Did Not Prefer the product |
||||
|
Tacloban City |
90,748 |
60 |
40 |
20 |
67% |
Target Market Demand and Supply
|
DEMAND |
SUPPLY |
GAP |
PRODUCTION |
MARKET SHARE |
|
90,748 |
748 |
90,000 |
960 |
6% |
COMPETITORS’ ANALYSIS
There
are several existing competitors for the handbag organizer but most of them are
using social media as a platform but none are found in most physical store
aside from storage boxes.
COMPETITIVE
ADVANTAGE
The competitive advantage the
proponents has determined for the handbag organizer is the affordability of the
product along with its exquisite design while helping to store handbags without
them damaging and being able to see through for easy access.
MARKETING PROGRAM
The business initiators have come up
with methodological and systematized marketing programs and set of objectives
for this business to be feasible.
Marketing Strategies
J-GRAP LTD. will be opening the
market of handbag organizer in the city that gives the business a strategic
advantage to gain the trust of potential consumers and engrave the company
brand to them for future products. The company will also be entering consignment contract
with malls to display the product in their respective establishments. This will
help lessen the company expenses in renting out stands or stores inside the
malls.
Promotion
The proposed business will use the
available promotional strategies considering the available resources. To
strengthen the promotional and dissemination of the product to the target
market, the proponents will put a label in every box and will have a tarpaulin.
Table
9
Promotional
Cost
|
Advertising
Materials |
Size |
Quantity |
Unit Price |
Total |
|
Tarpaulin |
5"x8" |
1 |
₱300.00 |
₱300.00 |
Tarpaulin
Design
Price Computation
|
PARTICULAR |
PRICE |
PERCENTAGE |
|
Direct Materials |
₱ 1,188.00 |
48.01% |
|
Direct Labor |
₱ 600.00 |
24.25% |
|
Overhead Expenses |
₱ 686.39 |
27.74% |
|
TOAL COST OF PRODUCTION |
₱ 2,474.39 |
100% |
|
Number of Product Produced |
4 |
|
|
Unit Cost/Piece |
₱ 618.60 |
77% |
|
Mark up |
₱ 181.40 |
23% |
|
Selling Price |
₱ 800.00 |
100% |
DISTRIBUTION CHANNEL
The
product will be sold at the target market in Tacloban City
VI.
PRODUCTION STUDY
PRODUCT DISCRIPTION
The
handbag organizer is a hand-sewn product that is made of quality materials namely:
Oxford, Mirror, Pillon, Thread and Metal. Its design includes a rotating metal
hook and six (6) large, expandable, and translucent compartments intended for
visible handbag storage. The handbag organizer product promotes convenience and
storage efficiency which modifies the traditional way of storing handbags,
providing the target market a revolutionary and fun experience. Further, the
handbag organizer comes with a justifiable price that highly reflects the
quality of said product.
PRODUCTION PROCESS
|
Process |
Diagram |
Description |
Time |
|
|
|
|
|
|
Pattern Making |
 |
Making pattern
pieces for the garment bag |
1hr |
|
Cutting |
|
Cutting the
pattern pieces in the fabric |
1hr |
|
Assembling & sewing |
 |
Stitching the
parts of the garment bag together |
2:42 hrs. |
|
Packaging |
|
Folding and
wrapping finished product |
1:47 mins. |
|
Total
time frame per production |
Total |
|
Total
number of product per cycle |
1
pcs. |
|
Total
number of product at 5 cycle per day |
6
pcs. |
|
Total
number of product produced per week |
20
pcs. |
|
Total
number of product per month |
80
pcs. |
|
Total
number of product per year |
960
pcs. |
RAW MATERIALS
|
Particular |
Quantity |
Unit |
Unit Cost |
Total |
|
Oxford |
1 |
meter |
₱ 90.00 |
₱ 90.00 |
|
Mirror |
1 |
meter |
₱ 150.00 |
₱ 150.00 |
|
Pilon |
1 |
meter |
₱ 57.00 |
₱ 57.00 |
|
TOTAL |
₱ 297.00 |
DIRECT LABOR
1ST YEAR
|
NO |
SALARY |
SSS |
PHILHEALTH |
PAG-IBIG |
|||||
|
Day |
Monthly |
Annual |
Monthly |
Annual |
Monthly |
Annual |
Monthly |
Annual |
|
|
2 |
300 |
12000 |
144000 |
520 |
6240 |
350 |
4200 |
240 |
2880 |
2ND YEAR
|
NO |
SALARY |
SSS |
PHILHEALTH |
PAG-IBIG |
|||||
|
Day |
Monthly |
Annual |
Monthly |
Annual |
Monthly |
Annual |
Monthly |
Annual |
|
|
3 |
300 |
18000 |
216000 |
520 |
6240 |
400 |
4800 |
360 |
4320 |
3RD
YEAR
|
NO |
SALARY |
SSS |
PHILHEALTH |
PAG-IBIG |
|||||
|
Day |
Monthly |
Annual |
Monthly |
Annual |
Monthly |
Annual |
Monthly |
Annual |
|
|
3 |
300 |
18000 |
216000 |
520 |
6240 |
450 |
5400 |
360 |
4320 |
FACTORY OVERHEAD
Table Production Utility Cost
|
Utilities |
Amount |
|||
|
Daily |
Weekly |
Monthly |
Annual |
|
|
Water |
₱ 5.00 |
₱ 35.00 |
₱ 150.00 |
₱ 1,800.00 |
|
Electricity |
₱ 7.00 |
₱ 49.00 |
₱ 210.00 |
₱ 2,520.00 |
|
₱ 12.00 |
₱ 84.00 |
₱ 360.00 |
₱ 4,320.00 |
Table Rental
|
Particular |
Daily |
Weekly |
Month |
Year |
|
Space for Production Area |
₱500.00 |
₱3,500.00 |
₱15,000.00 |
₱180,000.00 |
FINISHED GOODS INVENTORY
|
GOODS PRODUCE |
GOODS SOLD |
BALANCE |
|
940 |
800 |
140 |
DEPRECIABLE ASSETS
Table Equipment, Furniture and Fixture Requirements
|
Particular |
Qty |
Unit Cost |
Total |
Estimated Life |
Depreciation |
Accumulated Depreciation |
||
|
Year 1 |
Year 2 |
Year 3 |
||||||
|
Equipment |
||||||||
|
Ordinary sewing Machine |
2 |
₱24,000.00 |
₱48,000.00 |
10 |
₱4,800.00 |
₱ 4,800.00 |
₱ 4,800.00 |
₱ 14,400.00 |
|
Electric fan |
2 |
₱12,000.00 |
₱24,000.00 |
5 |
₱4,800.00 |
₱ 4,800.00 |
₱ 4,800.00 |
₱ 14,400.00 |
|
Sub-total |
₱72,000.00 |
₱9,600.00 |
₱ 9,600.00 |
₱ 9,600.00 |
₱ 28,800.00 |
|||
|
Furniture’s
& Fixtures |
||||||||
|
Cutting Table |
1 |
₱ 1,320.00 |
₱ 1,320.00 |
5 |
₱ 264.00 |
₱ 264.00 |
₱ 264.00 |
₱ 792.00 |
|
Chairs |
4 |
₱ 1,200.00 |
₱ 4,800.00 |
5 |
₱ 960.00 |
₱ 960.00 |
₱ 960.00 |
₱ 2,880.00 |
|
Sub-total |
₱ 6,120.00 |
₱ 505.00 |
₱ 505.00 |
₱ 505.00 |
₱ 1,008.00 |
|||
|
TOTAL |
₱ 78,120.00 |
₱10,105.00 |
₱ 10,105.00 |
₱ 10,105.00 |
₱ 29,808.00 |
|||
Table Sewing Tools and Outfit
Requirements
|
Particular |
Qty. |
Unit |
Unit Cost |
Total |
Estimated Life |
Depreciation |
Accumulated Depreciation |
||
|
Year 1 |
Year 2 |
Year 3 |
|||||||
|
Sewing
Tools |
|||||||||
|
pin cushion |
2 |
pack |
₱35.00 |
₱ 70.00 |
1 |
₱ 70.00 |
- |
- |
₱ 70.00 |
|
organ HA |
100 |
piece |
₱ 6.00 |
₱ 600.00 |
1 |
₱ 600.00 |
- |
- |
₱ 600.00 |
|
Organ DB |
100 |
piece |
₱10.00 |
₱ 1,000.00 |
1 |
₱ 1,000.00 |
- |
- |
₱ 1,000.00 |
|
Tape measure |
3 |
piece |
₱18.00 |
₱ 54.00 |
1 |
₱ 54.00 |
- |
- |
₱ 54.00 |
|
Hand Needle |
1 |
pack |
₱25.00 |
₱ 25.00 |
1 |
₱ 25.00 |
- |
- |
₱ 25.00 |
|
Pencil |
1 |
box |
₱48.00 |
₱ 48.00 |
1 |
₱ 48.00 |
- |
- |
₱ 48.00 |
|
Tracing Wheel |
3 |
piece |
₱16.00 |
₱ 48.00 |
1 |
₱ 48.00 |
- |
- |
₱ 48.00 |
|
Tailors Chalk |
3 |
piece |
₱45.00 |
₱ 135.00 |
1 |
₱ 135.00 |
- |
- |
₱ 135.00 |
|
Pins |
1 |
box |
₱105.00 |
₱ 105.00 |
1 |
₱ 105.00 |
- |
- |
₱ 105.00 |
|
Dressmaker Carbon |
3 |
piece |
₱ 22.00 |
₱ 66.00 |
1 |
₱ 66.00 |
- |
- |
₱ 66.00 |
|
L -square |
3 |
piece |
₱ 59.00 |
₱ 177.00 |
1 |
₱ 177.00 |
- |
- |
₱ 177.00 |
|
Hip Curve |
3 |
piece |
₱ 39.00 |
₱ 117.00 |
1 |
₱ 117.00 |
- |
- |
₱ 117.00 |
|
French curve |
3 |
piece |
₱ 42.00 |
₱ 126.00 |
1 |
₱ 126.00 |
- |
- |
₱ 126.00 |
|
Triangle w/ruler |
3 |
piece |
₱ 8.00 |
₱ 24.00 |
1 |
₱ 24.00 |
- |
- |
₱ 24.00 |
|
Sub-Total |
₱ 2,595.00 |
₱ 2,595.00 |
₱ 2,595.00 |
||||||
|
Particular |
Qty. |
Unit |
Unit
Cost |
Total |
Estimated
Life |
Depreciation |
Accumulated
Depreciation |
||||||
|
Sewing
outfit |
|||||||||||||
|
Sewing Gloves |
3 |
piece |
₱ 225.00 |
₱ 675.00 |
1 |
₱ 675.00 |
- |
- |
₱ 675.00 |
||||
|
Dust Mask |
3 |
piece |
₱ 80.00 |
₱ 240.00 |
1 |
₱ 240.00 |
- |
- |
₱ 240.00 |
||||
|
Finger guards |
3 |
piece |
₱ 31.00 |
₱ 93.00 |
1 |
₱ 93.00 |
- |
- |
₱ 93.00 |
||||
|
Eye guards |
3 |
piece |
₱ 173.00 |
₱ 519.00 |
1 |
₱ 519.00 |
- |
- |
₱ 519.00 |
||||
|
Safety Tape |
3 |
piece |
₱ 107.00 |
₱ 321.00 |
1 |
₱ 321.00 |
- |
- |
₱ 321.00 |
||||
|
Sub-Total |
₱ 1,848.00 |
|
₱ 1,848.00 |
- |
- |
₱ 1,848.00 |
|||||||
VII.
PROJECTED FINANCIAL STATEMENTS
|
J-GRAP ENTERPRISES |
||||
|
PROJECTED BALANCE SHEET |
||||
|
ASSETS |
2021 |
2022 |
2023 |
|
|
Cash |
₱ 50,000.00 |
₱
40,000.00 |
₱
75,000.00 |
|
|
Raw Materials Inventory |
₱ 17,920.00 |
₱ 37,325.00 |
₱ 39,998.00 |
|
|
Finished Goods Inventory |
₱ 86,603.65 |
₱ 132,998.46 |
₱ 186,197.85 |
|
|
Sewing Tools |
₱ 2,595.00 |
₱ 2,595.00 |
₱ 2,595.00 |
|
|
Sewing outfit |
₱ 1,848.00 |
₱ 1,848.00 |
₱ 1,848.00 |
|
|
₱ 158,966.65 |
₱
214,766.46 |
₱
305,638.85 |
||
|
Ordinary sewing Machine |
₱48,000.00 |
₱48,000.00 |
₱48,000.00 |
|
|
Accumulated Depreciation - Ordinary sewing
Machine |
-₱
4,800.00 |
-₱
9,600.00 |
-₱
14,400.00 |
|
|
Electric fan |
₱24,000.00 |
₱24,000.00 |
₱24,000.00 |
|
|
Accumulated Depreciation - Electric fan |
-₱
4,800.00 |
-₱
9,600.00 |
-₱
14,400.00 |
|
|
Cutting Table |
₱ 1,320.00 |
₱ 1,320.00 |
₱ 1,320.00 |
|
|
Accumulated Depreciation - Cutting Table |
-₱
264.00 |
-₱
528.00 |
-₱
792.00 |
|
|
Chairs |
₱ 1,200.00 |
₱ 1,200.00 |
₱ 4,800.00 |
|
|
Accumulated Depreciation - Chairs |
-₱
960.00 |
-₱
1,920.00 |
-₱
2,880.00 |
|
|
₱ 63,696.00 |
₱52,872.00 |
₱45,648.00 |
||
|
₱ 222,662.65 |
₱267,638.46 |
₱351,286.85 |
||
|
LIABILITY AND OWNER'S EQUITY |
||||
|
Loan |
₱ 60,000.00 |
₱ 40,000.00 |
₱ 20,000.00 |
|
|
Equity |
₱ 162,662.65 |
₱187,638.46 |
₱256,286.85 |
|
|
₱ 222,662.65 |
₱
267,638.46 |
₱
351,286.85 |
||
|
J-GRAP ENTERPRISES PROJECTED INCOME STATEMENT |
|||||||
|
2021 |
2022 |
2023 |
|||||
|
Sales |
₱ 640,000.00 |
₱ 768,000.00 |
₱ 921,600.00 |
||||
|
Cost of Sales |
|||||||
|
Direct Material |
₱237,600.00 |
₱ 285,120.00 |
₱ 399,168.00 |
||||
|
Labor |
₱ 144,000.00 |
₱ 216,000.00 |
₱ 216,000.00 |
||||
|
Factory Overhead |
|||||||
|
Indirect Material |
₱ 1,600.00 |
₱ 2,000.00 |
₱ 2,400.00 |
||||
|
Depreciation Expense |
₱ 10,105.00 |
₱ 10,105.00 |
₱ 10,105.00 |
||||
|
Utilities |
₱ 4,320.00 |
₱ 5,702.40 |
₱ 6,480.00 |
||||
|
Rent Expense |
₱ 180,000.00 |
₱ 180,000.00 |
₱ 180,000.00 |
||||
|
Cost of Goods Sold |
₱577,625.00 |
₱ 698,927.40 |
₱ 814,153.00 |
||||
|
Gross Income |
₱ 62,375.00 |
₱ 69,072.60 |
₱ 107,447.00 |
||||
|
Operating Expenses |
₱ 13,320.00 |
₱ 30,720.00 |
₱ 63,840.00 |
||||
|
Advertising Expense |
₱300.00 |
₱ 900.00 |
₱ 2,700.00 |
||||
|
Net Income |
₱ 48,755.00 |
₱ 37,452.60 |
₱ 40,907.00 |
||||
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