Upgrading of Adela’s Furniture ShopDiplo, Kumalarang, Zamboanga del Sur

I. MARKETING ASPECT

A. Market SituationEducation is the top budgetary priority where the 2016 budget of this sector

increased by 21 percent to P547.3 billion. In particular, this amount will enable the Department of Education (DepEd) to continue implementing the K-12 Basic Education Reform Program, including the first year of senior high school in 2016. The investment in improving the quality of education entails initiating actions towards input deficits of tables and chairs in the classrooms. With the advent of K-12 supply for wooden furniture classroom facilities is also increasing. The 87 and 45 schools in Zamboanga del Sur & Zamboanga Sibugay, respectively which are offering Senior High School are one of target markets of the study. It could be infer that such a number of student enrollees would result to procurement of funds for additional construction of classrooms which would eventually lead to a greater demand for chairs & tables.

Further, residences and offices within and outside the municipality may be enthralled with the quality of mahogany furniture Adela’s Furniture Shop could provide. Thus the proprietor saw a greater demand of furniture products not only in Zamboanga del Sur but also in its neighboring places.  Thus, upgrading the facilities of the furniture shop was a timely move to take advantage of a fast growing market.

B. Supply Analysis

Wood-based manufacture of furniture and furniture components from wood, rattan, and bamboo business is growing in the economy of Zamboanga del Sur aside from it being a predominantly agricultural province. Adela’s Furniture Shop owns a vast area of mahogany trees which would surely support its business operations. Within the span of three (3) days, one (1) worker could make one (1) table and (1) chair.

Furniture business ranging from small scale and large scale capacities could also supply the kind of products the business could provide but as to quality this business could provide reasonable assurance that the products have undergone careful considerations to take stand of its value. Hence, upgrading the furniture & woodcraft factory shop would even result to a comparative advantage in the market.

C. Demand AnalysisThe 87 and 45 schools offering senior high school in Zamboanga del Sur &

Zamboanga Sibugay respectively will be the target market with an average demand based on the program offering of various schools. With this data, there would be an average annual demand of 16, 750 for chairs and 332 for tables. On the 3 rd year after which procurement of funds for additional chairs and tables & contracts of sale had commenced, only repairs will be provided, averaging 25% of the total demand.

Province of Zamboanga Del Sur

Municipality School I.D. School Name ProgramOfferings

Average Demand

For Chairs

AverageDemand

ForTables

PAGADIAN CITY 349534 Zoom Technical-Vocational Training and Assessment Center, Inc.

GAS, TVL 100 2

DUMALINAO 314252 ZDS Sports Academy Sports 50 1

PAGADIAN CITY 303913 Zamboanga del Sur SAT GAS, TVL 100 2PAGADIAN CITY 303910 Zamboanga del Sur

National High SchoolSTEM, ABM, HUMSS, GAS, Arts and Design, Sports

300 6

PAGADIAN CITY 349739 Zamboanga del Sur Maritime Institute of Technology

STEM, ABM, HUMSS, GAS, TVL, Sports

300 6

PAGADIAN CITY 348293 Yllana Bay View College

STEM, ABM, HUMSS, TVL

200 4

DUMINGAG 348350 Western Mindanao Adventist Academy

STEM, ABM, HUMSS, GAS, TVL

200 4

PAGADIAN CITY 348292 Universidad de Zamboanga-Pagadian Branch

50 1

TUKURAN 303811 Tukuran Tech-Voc HS STEM, ABM, HUMSS, GAS, TVL

250 5

LAKEWOOD 303823 Tubod NHS GAS, TVL 100 2MARGOSATUBIG 303822 Toribio Minor NHS STEM, ABM,

GAS, TVL200 4

PAGADIAN CITY 303909 Tawagan Sur NHS GAS, TVL 100 2TAMBULIG 303819 Tambulig NHS STEM, ABM,

GAS, TVL200 4

TABINA 303768 Tabina NHS GAS, TVL 100 2TUKURAN 349737 Star of the Sea High

School50 1

PAGADIAN CITY 348290 Southern Mindanao Colleges

STEM, ABM, HUMSS, GAS

200 4

PAGADIAN CITY 360513 Southeast Asian Institute of Local Governance

TVL, Arts and Design

100 2

SOMINOT 303817 Sominot NHS GAS, TVL 100 2LABANGAN PSA328568 SHS in Labangan,

Zamboanga Del SurGAS, TVL 100 2

RAMON MAGSAYSAY

314228 Sapa Anding NHS- RM Ext.

GAS, TVL 100 2

RAMON MAGSAYSAY

303814 Sapa Anding Agri-Voc HS

GAS, TVL 100 2

AURORA 348349 Santa Teresita Academy STEM, GAS, TVL

300 3

MAHAYAG 348348 Santa Maria Goretti College

TVL 50 1

SAN PABLO 303813 San Pablo NHS STEM, GAS, TVL

150 3

DUMINGAG 348347 San Jose Academy TVL 50 1

TAMBULIG 348346 San Isidro High School, Inc

STEM, ABM, HUMSS, GAS

200 4

PAGADIAN CITY 360076 Saint Columban College STEM, ABM, HUMSS, GAS, TVL

250 5

SAN PABLO 348345 Saint Andrew’s Academy of San Pablo, Inc.

GAS, TVL 100 2

TABINA 348344 Saint Ambrose High School, Inc.

50 1

MOLAVE 360075 Sacred Heart Diocesan School, Inc.

STEM, ABM, HUMSS, GAS, TVL

250 5

DUMALINAO 303808 Rebokon Agri-Voc HS GAS, TVL 100 2

DINAS 348343 Pres. Garcia Memorial Institute of Technology

ABM, GAS, TVL

150 3

LAKEWOOD 314249 Pob. Comprehensive NHS

GAS, TVL 100 2

PAGADIAN CITY 349890 PJC High School ABM, HUMSS, GAS

150 3

TAMBULIG 360518 Pimentel Creative Arts Resource and Technological Institute Inc.

TVL 50 1

PAGADIAN CITY 348289 Philippine Technological and Marine Sciences

50 1

PITOGO 303804 Paulino Dari NHS HUMSS, GAS, TVL

150 3

MAHAYAG 360517 Pagadian Institute of Technology-Mahayag Branch

TVL 50 1

PAGADIAN CITY 314704 Pagadian City Science High School

STEM, GAS 100 2

PAGADIAN CITY 303908 Pagadian City NHS GAS, TVL 100 2

PAGADIAN CITY 303906 Pagadian City NCHS GAS, TVL 100 2PAGADIAN CITY 348288 Pagadian Capitol College STEM, ABM,

HUMSS, GAS, TVL, Sports

300 6

PAGADIAN CITY 314702 Norberta Guillar NHS (Napolan NHS - Norberta Guillar Mem. School Ext.)

GAS, TVL 100 2

TIGBAO 303800 Nilo NHS GAS, TVL 100 2LABANGAN 303799 New Labangan NHS GAS, TVL 100 2MOLAVE 303797 MVTS STEM, ABM,

HUMSS, GAS, TVL

250 5

MAHAYAG303803 MSAT STEM, ABM,

GAS, TVL200 4

MIDSALIP 303796 Midsalip NHS STEM, GAS, TVL

150 3

PAGADIAN CITY Medina College STEM, TVL 100 2

MARGOSATUBIG 348342 Margosatubig Pax High School/Kindergarten, Inc.

TVL 50 1

MARGOSATUBIG 348341 Margosatubig Friendship School of Arts and Trade

GAS, TVL 100 2

MARGOSATUBIG 349734 Margosatubig Academy, Inc.

TVL 50 1

PAGADIAN CITY 303904 Manga NHS GAS, TVL 100 2

PAGADIAN CITY 348287 Lucan Central Colleges HUMSS, TVL 100 2SAN MIGUEL 348340 Lourdes Academy TVL 50 1

PAGADIAN CITY 303903 Lison Valley NHS GAS, TVL 100 2

JOSEFINA 303792 Leonardo NHS GAS, TVL 100 2

DIMATALING 303764 Laureano NHS STEM, GAS, TVL

150 3

LAPUYAN 303788 Lapuyan NHS GAS, TVL 100 2

PAGADIAN CITY 303901 Lala NHS GAS, TVL 100 2

KUMALARANG 303784 Kumalarang NHS HUMSS, GAS, TVL

150 3

MARGOSATUBIG 303783 Kalian NHS HUMSS, GAS, TVL

150 3

V. SAGUN 303782 Kabatan NHS STEM, ABM, GAS, TVL

200 4

PAGADIAN CITY 349533 International College of Philsouth

TVL 50 1

DUMALINAO 348339 Immaculate Heart Academy

GAS, TVL 100 2

TUKURAN 349536 Hyrons College Philippines, Inc.

TVL 50 1

MIDSALIP 348338 Holy Trinity High School

TVL 50 1

RAMON MAGSAYSAY (LIARGO)

348337 Holy Family High School

GAS, TVL 100 2

PAGADIAN CITY 348286 Holy Child Academy STEM, ABM, GAS, TVL

200 4

GUIPOS 303778 Guipos NHS ABM, GAS, TVL

150 3

SAN PABLO 303776 Eugenia Andrin NHS GAS, TVL 100 2

PAGADIAN CITY 348285 Eastern Mindanao College of Technology

STEM, TVL 100 2

DUMINGAG 303773 Dumingag NHS STEM, ABM, GAS, TVL

200 4

DUMALINAO 303774 Dumalinao NHS GAS, TVL 100 2

DINAS 303771 Dinas NHS STEM, ABM, HUMSS, GAS, TVL

250 5

DIMATALING 303770 Dimataling NHS GAS, TVL 100 2

TABINA 303769 Culabay NHS GAS, TVL 100 2

AURORA 303766 Commonwealth NHS GAS, TVL 100 2

PAGADIAN CITY 314705 Co Tek Chun National Trade School

GAS, TVL 100 2

MAHAYAG 314203 Boniao NHS HUMSS, GAS, TVL

150 3

MOLAVE 348336 Blancia College Foundation, Inc.

STEM, ABM, HUMSS, GAS, TVL

250 5

SAN MIGUEL 303791 Betinan NHS GAS, TVL 100 2

BAYOG 303757 Bayog NHS STEM, ABM, GAS, TVL

200 4

AURORA 348335 Aurora Pioneers Memorial College

50 1

AURORA 303780 Aurora NHS STEM, ABM, GAS, TVL, Arts and Design

250 5

TIGBAO 303753 Antonio NHS GAS, TVL 100 2

LABANGAN 348334 Alhadeetha Mindanao College (AMC), Inc.

TVL 50 1

Total Average Demand

11, 300 223

Province of Zamboanga Sibugay

Municipality School School Name Program Average Average

I.D. Offerings DemandFor

Chairs

Demand For Tables

IPIL 303854 Zamboanga Sibugay NHS

HUMSS, GAS, TVL

150 3

MABUHAY 348363 Xavier High School GAS 50 1

BUUG 349738 Western Mindanao Institute of Buug, Inc.

50 1

IPIL 348362 Universidad de Zamboanga-Ipil Campus

STEM, ABM, HUMSS, GAS, TVL

250 5

TUNGAWAN 303874 Tungawan National High School

HUMSS, GAS, TVL

150 3

TITAY 303872 Titay NHS ABM, HUMSS, GAS, TVL

200 4

IMELDA 348361 The Good Shepherd School of Imelda, Inc.

GAS, TVL 100 2

TALUSAN 303870 Talusan NHS GAS, TVL 100 2ROSELLER LIM 303866 Surabay NHS ABM, HUMSS,

GAS, TVL200 4

BUUG 360521 St. John College of Buug Foundation Incorporated

ABM, HUMSS, TVL

150 3

IPIL 360520 Sibugay's Matthew-Jackson School, Inc.

ABM, HUMSS, GAS, TVL

200 4

IPIL 348360 Sibugay Technical Institute, Inc

STEM, ABM, HUMSS, GAS, TVL

250 5

SIAY 303864 Siay National High School

HUMSS, GAS, TVL

150 3

BUUG 348359 Seeds of Life Christian School of Buug, Inc.

50 1

NAGA 303861 Santa Clara NHS GAS, TVL 100 2

TITAY 303860 San Antonio NHS GAS 50 1

BUUG 348358 Saint Paul School GAS, TVL 100 2

TUNGAWAN 303859 Pioneer NHS HUMSS, GAS 100 2PAYAO 303856 Payao NHS GAS, TVL 100 2OLUTANGA 303851 Olutanga NHS GAS, TVL 100 2

NAGA 303849 Naga NHS GAS, TVL 100 2

IPIL 349735 Medina College Ipil, Inc.

50 1

IPIL 348357 Marian College, Inc. ABM, GAS 100 2IPIL 348356 Marcelo Spinola School STEM, ABM 100 2

ROSELLER LIM 303867 Malubal NHS GAS 50 1

MALANGAS 303845 Malangas NHS GAS, TVL 100 2MALANGAS 348355 Malangas Institute GAS, TVL 100 2

MABUHAY 303852 Mabuhay NHS GAS, TVL 100 2

MABUHAY 314315 Mabuhay Agro-Industrial HS

GAS 50 1

OLUTANGA 348354 Loyola High School ABM, GAS, TVL

150 3

KABASALAN 303840 Kabasalan Science & Technology HS

STEM 50 1

KABASALAN 303839 Kabasalan NHS GAS, TVL 100 2IPIL 303838 Ipil NHS GAS, TVL 100 2

BUUG 360519 Internacional Colegio De Tecnologia

GAS, TVL 100 2

IMELDA 303837 Imelda NHS ABM, HUMSS, GAS, TVL

200 4

PAYAO 303836 Guintolan NHS GAS, TVL 100 2

TITAY 348353 Global Academy Institute of Technology Foundation, Inc.

ABM, HUMSS, GAS, TVL

200 4

KABASALAN 303827 Francisco Ramos (Buayan) NHS

HUMSS, GAS, TVL

150 3

IPIL 348352 Dr. Aurelio Mendoza Memorial Colleges

ABM, HUMSS, GAS, TVL

200 4

DIPLAHAN 314314 Ditay NHS GAS 50 1

DIPLAHAN 303828 Diplahan NHS ABM, HUMSS, GAS, TVL

200 4

ALICIA 303825 Dawa-Dawa NHS GAS 50 1

BUUG 303829 Buug NHS GAS, TVL 100 2

ALICIA 303824 Alicia National High School

HUMSS, GAS, TVL

150 3

IPIL 348351 Aim High Colleges Incorporation

ABM, HUMSS, GAS, TVL

200 4

Total 5, 450 109

D. Product Specifications & Product Price

Description Size Cost Office Table 20” x 40”

Material:Wood 16 board ft. P26/ board ft.

Labor P1, 500/pieceFinishing Cost P750/pieceQuality Inspector P100/piece

Selling Price P3500/piece Chair

Material: Wood 5 board ft. P26/ board ft.

Labor P100/piece Finishing Cost P25/piece

Quality Inspector P50/pieceSelling Price P700/piece

E. Channel and Area of DistributionThe business would undergo bidding process to various schools within which

contracts as to how supply of chairs and tables would then arise. Sales which results from orders made by individuals for their residences & offices may either be through cash basis or installments depending on circumstances attending thereto.

The efforts therein to upgrade the capability in producing quality furniture products of Adela’s Furniture Shop is primarily due to the inadequacy of classrooms’ chairs and tables for the K-12 Program of DepEd. With the advancement of various furniture businesses, Adela’s Furniture Shop initiate steps to at par & even be the leading-edge supplier for the bidding.

F. CompetitorsMade to order furniture shops form part of the growing market of furniture &

woodcraft in the peninsula. A considerable number of competitors who provides mostly home furniture and component for offices may substantially affect the business when they will also be involved especially in the bidding process. Taking into considerations the capacity, availability, price and convenience that a particular engagement is into.

G. Marketing Plans & Strategies

Active direct involvement in the invitation to bid of DepEd-Region 9, Zamboanga del Sur and Zamboanga Sibugay and through the DOST’s Small Enterprises Technology Upgrading Program in collaboration with Forest Products & Development Institutes’ assistance may be provided, if any.

H. Existing Assets

Description Quantity CostBuilding 1 P75, 000Van Saw 1 P35, 000

Chain Saw 1 P25, 00012 HP Engine 1 P15, 000

__ Area of MahoganyDelivery Van 1 P500, 000

Total

I. Total Projected Cost

Additional Assets Needed: Delivery Truck Isuzu Forward

Quantity1

CostP300, 000

Table Planner 1 P15, 000 Electric Power Drill 1 P5, 000

Working Capital Raw Materials P300, 000 Labor P70, 000 Gasoline & Oil P50, 000 Travelling Expenses P50, 000 Unforeseen Costs P50, 000

Total P840, 000