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Executive Summary:
Name of Applicants
Michael Jere D. Abiol
Jirehli D. Delima
Julie Pearl D. Juliata
Anna Micah B. Manubag
Business Name
Clay Creations
Location
Head Office and Project Site:
Door 5, Eltanal Apartment Redemptorist Street, Tibanga,
Iligan City
RATIONALE
Polymer clay, as the name implies, is a sculptable, blendable and
pliable material based on the polymer polyvinyl chloride (PVC). However,
it is not true clay; it is only PVC suspended in plasticizer. Even though it
contains no clay minerals, polymer clay is still called clay because of the
resemblance of their features, texture and working properties with that of
the mineral clay. (Source: http://en.wikipedia.org/wiki/Polymer_clay)
http://en.wikipedia.org/wiki/Polymer_clayhttp://en.wikipedia.org/wiki/Polymer_clay8/11/2019 Market 1 - 28
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Nowadays, students specifically in high school and college of both
private and public sectors, appeared to have interests in accessories as
an added embellishment to their handbags, cell phones and etc. most
especially that it can be personalized. With their shown fondness of these
accessories, the researchers came up with the idea to establish their own
business with the name Clay Creations. Clay Creations will start as a
small business that will be a stepping stone towards the vast world of
business and the development of arts. The researchers decided to pursue
this study because its unique and easy for them to mold and to
customize according to the customers desired designs.
The main branch will be situated at Door 5 Eltanal Apartment,
along Redemptorist Street, Tibanga Iligan City where all the processing of
the products takes place. However, for the accessibility and for the
availability to its customers, the display area will also be located at the
same place where there are huge numbers of passersby. In this location,
we can easily promote and advertise our products by vending it to the
public.
Project Description
Clay Creations is a newly ventured business that engages in the
manufacturing and selling of personalized and customized accessories
such as chibi dolls and nametags made out of polymer clay to be used as
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keychains. The product will be polymer clay that is molded and shaped
according to the chosen design of the customer. Approximately, the shop
can produce a minimum of 16 pieces a day or 320 pieces a month
excluding weekends. This product can be used as gift item, collectible or
just simply an accessory.
SOCIAL AND ECONOMIC DESIRABILITY
The proposed business can benefit both the proponents and the
economy. Through this, it can generate employment and contribute to
the labor and employment problems faced by the society. It aims to step-
up the awareness of the product as well as for those who have interests
in venturing into this business. It could, at the same time, help the
development and hike the economic increment of arts and creativity of
the people here in Iligan City.
MARKET FEASIBILITY
Polymer clay is new in the market. Hence, some people are not
familiar with these products. Most manufacturers intend to use raw
materials which conform to specifications to produce good quantity of
products. Clay Creations sets a goal to offer customized products
through unique designs, reliable, and high quality materials by making
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accessories like key chains and chibi dolls made out of polymer clay.
Considering the quality of materials which is uppermost in the minds of
end users, the business considers these semi-finished products as the
best component to introduce good quality of products in the market. The
target market will be the high school and college students of both private
and public sectors. It will be promoted in different social networking
sites, posting of tarpaulin outside the display area, and through personal
selling to directly inform the potential buyers.
TECHNICAL FEASIBILITY
The project comprises a minimum amount of capital to fund the
business. The needed materials are the following: variety of colors of
polymer clays, key chains, pins, varnish, paint brush, oven toaster,
aluminum foil, and plastic for the packaging.
FINANCIAL FEASIBILITY
ROI = 5.30 or 530%
Payback Period = 2.3 ~ 2.3 months
Break-Even Analysis:
Nametag: BEP = 15 Nametags ; Break-even on Sales = P750.00
Chibi Doll: BEP = 7 Chibi Dolls; Break-even on Sales = P525.00
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MARKET
STUDY
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Introduction
Polymer clay is a sculptable material mostly used by artists,
hobbyists and children. It has a basis of polymer polyvinyl chloride (PVC)
and one or more several kinds of liquid plasticizer. It contains no clay
minerals. However, it is called clay because of its texture and working
properties which resembles to mineral clay. It has been tested and
approved by the Arts and Crafts Materials Institute (ACMI), Consumer
Product Safety Commission (CPSC) and American Society for Testing and
Materials Standard (AMSTM) that it has a status of being non-toxic. But
it is said to be harmful if it is in contact with mouth. (Source:
http://en.wikipedia.org/wiki/Polymer_clay)
Polymer clay has a variety of colors. It can also be colored with
other medias such as paint, ink, colored pencil, etc. to have a specialized
effect and to make it more attractive.
People, particularly high school and college students of both
private and public sectors, are indeed fond of having different accessories
for their personal items such as purse, cell phones, etc. to complete and
compleme nt the items look. Having these personalized accessories is
also an excellent way to express ones self by ex hibiting ones personality
through the products color and especially design accordingly giving way
to the persons individuality and uniqueness.
http://en.wikipedia.org/wiki/Polymer_clayhttp://en.wikipedia.org/wiki/Polymer_clay8/11/2019 Market 1 - 28
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For these reasons, the researchers came up with the idea to create
and produce this exceptional product polymer clay personalized
accessories specifically chibi dolls and nametags preferred accessories
in the market.
PRODUCT
Clay Creations is a business that manufactures and sells
customized or personalized accessories, chibi dolls and nametags, which
are made out of polymer clay. The product will be from a piece of clay
that will be molded according to the desired design of the customer.
Approximately, the business can create a minimum of 320 pieces a
month or 16 pieces a day. The product can be used as a souvenir item,
gift, decoration or simply an accessory.
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MARKET ENVIRONMENT
To gather information and data relevant for the study, the
researchers provided 100 self-constructed survey questionnaires. In this
way, they can determine whether the product is saleable to its target
market.
The study covers only high school and college students as the
primary target market because todays generation , mostly teenagers are
the ones who are fond of buying accessories especially personalized items
as an added design to their handbags, mobile phones and other stuff.
This data gathering allows them to have concrete and sufficient
information to engage in this kind of business and compete with the
other possible competitors.
Survey Data
This section illustrates the presentation, analysis and
interpretation data of the study. Note: The researchers purposively
distributed the survey questionnaires equally to the high school and
college levels of both private and public sectors.
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Table 1 Age of the Respondents
Age Frequency Percentage
Teenagers
(13-19) 80 80%
Adults
(20 onwards) 20 20%
TOTAL 100 100%
Table 1 shows that mostly teenagers were the ones who answered
positively that they are fond of personalized products and accessories. It
is because teenagers like to keep up with the trend or something which is
new in fashion. They feel that being trendy is a way of fitting in at school
and in the world and that it is a way of expressing themselves. (Source:
http://answers.yahoo.com/question/index?qid=20080331135655AAzxy
mO)
http://answers.yahoo.com/question/index?qid=20080331135655AAzxymOhttp://answers.yahoo.com/question/index?qid=20080331135655AAzxymOhttp://answers.yahoo.com/question/index?qid=20080331135655AAzxymOhttp://answers.yahoo.com/question/index?qid=20080331135655AAzxymO8/11/2019 Market 1 - 28
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Table 2 Respondents according to their gender
Gender Frequency Percentage
Male 27 27%
Female 73 73%
TOTAL 100 100%
Table 2 shows that majority of the respondents are females. It
implies that it is the females who are mostly engaged and interested in
buying the type of accessories produced by the researchers. Young girls
and modern ladies: the two are conscious of fashion trends in every
period and year, even in every single day. Accordingly, fashion
accessories have turned into a way of life for most modern ladies because
everyone is eager to stand out in the crowd. (Source:
http://www.decorativepaintinger.com/2011/10/why-women-love-
fashion-accessories/)
http://www.hallomall.com/http://www.hallomall.com/http://www.decorativepaintinger.com/2011/10/why-women-love-fashion-accessories/http://www.decorativepaintinger.com/2011/10/why-women-love-fashion-accessories/http://www.decorativepaintinger.com/2011/10/why-women-love-fashion-accessories/http://www.decorativepaintinger.com/2011/10/why-women-love-fashion-accessories/http://www.hallomall.com/http://www.hallomall.com/8/11/2019 Market 1 - 28
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Table 3 Average weekly allowance of the respondents
Average Weekly
Allowance Frequency Percentage
200 and below 25 25%
201 to 400 33 33%
401 to 600 30 30%
601 to 800 6 6%
801 to 1000 2 2%
1001 and above 4 4%
TOTAL 100 100%
Table 3 shows that 25% of the respondents have an average weekly
allowance of 200 and below, 33% have PhP 201-400 and 30% have PhP
401-600. This means that the products being introduced, priced as P
50.00 and P 75.00 per unit, is affordable and reasonably priced for the
target market.
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Table 4 Total number of respondents who like personalized accessories
particularly name tags and chibi dolls to be used as key chains and
accessories
Frequency Percentage
Yes 91 91%
No 9 9%
Total 100 100%
On the given data, 91% of the respondents are fond of personalized
accessories. Thus, it implies that there is a positive response in our
target market regarding the products being offered and wide acceptance
in the market will bring strong possible demands for the product.
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Table 5 How often do you buy accessories?
Frequency Percentage
Often 30 30%
Occasionally 69 69%
Never 1 1%
Total 100 100%
Table 5 shows that 69% of the respondents buy accessories
occasionally but only 30% purchase often. For this reason, the
researchers decided to lessen the weekly production, from 100 pieces to
80, to avoid overproduction and losses.
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Table 6 Preferred size
Frequency Percentage
Small (2inches.) 50 50%
Medium
(3inches.) 39 39%
Large (4inches.) 11 11%
Total 100 100%
Majority of the respondents prefer small sized products over the
other sizes. Hence, since majority of the market favors a small sized
product, the researchers shall focus their production in small
accessories.
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Table 7 What are the features of this product that you like?
Frequency Percentage
Color 20 20%
Size 15 15%
Design 65 65%
Total 100 100%
Table 7 shows the features of the product which the respondents
find attractive. Majority answered that it is the products design.
Therefore, the researchers will expand their line of colors offered to make
the product more suitable. Moreover, for the satisfaction of the
customers, upon making the order, they are given the liberty to choose
what color or design their desired accessory will look like.
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Table 8 What do you think would be the fair price for this product?
Table 10 shows that a greater part of the respondents favor the
least price in the given options. As a result, the researchers shall create
Personalized
Nametag Frequency Percentage
50-150 89 89%
101-150 4 4%
151-200 7 7%
Total 100 100%
Chibi Dolls
50 150 86 86%
101-150 12 12%
151-200 2 2%
Total 100 100%
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and sell the products with a lesser price, P50.00 per nametag and P75.00
per chibi doll, but with a greater and excellent quality.
Table 9 How would you rate our products?
Frequency Percentage
Excellent 27 27%
Very Good 45 45%
Good 27 27%
Poor 1 1%
Total 100 100%
Upon the distribution of the survey questionnaires, the researchers
showed sample products for the respondents to judge and rate. 47% of
them concluded that the products were very good while only 27%
responded excellent. For this reason, the researchers decided to make
improvements and betterment of their produc ts ove rall attributes to
attain excellence.
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Table 10 Would you recommend our products to your friend(s)?
Frequency Percentage
Yes 100 100%
No 0 0%
Total 100 100%
On the provided data, 100% of the respondents answered positively
that they would recommend the products to their friends. It is a plus in
the advertising of the business in view of the fact that word of mouth is
an unpaid form of promotion which spreads fast among the customers
which surely can broaden the market for the business.
COMPETITION
In business, there is always competition involved. Clay Creations
is not the only business who offers personalized products. There are
some establishments which we can consider as direct competitors. These
include Knick-Knacks, Gaisano Mall and any other store which sells
accessories whether personalized or not. Still, the business can compete
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in terms of the uniqueness of the products, the quality of the materials
and the reasonable price of each item.
MARKETING AND SALES STRATEGY
Promotion represents all of the communication that a marketer
may use in the market place. Clay Creations will do sales promotion
which complement personal selling and advertisements such as an
exhibit of tarpaulin outside the main display area. Therefore, it helps a
lot in introducing the product to the target market. Furthermore,
through the help of technology, Clay Creations will at the same time
employ an online shoppe in different social networking sites such as
Facebook, Twitter and Multiply. The business will make their own
website to advertise the product as well as to sell and receive orders.
Possible customers can also visit the store located in Door 5, Eltanal
Apartment Redemptorist Street, Tibanga, Iligan City where they can see
for themselves sample designs or purchase ready-made products. The
business also engages collaborating with event organizers in accepting
special orders such as baptisms, birthdays and wedding souvenirs to
increase sales. Clay Creation will employ cash basis as mode of payment
inside and outside in Iligan before receiving orders.
Product
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Clay Creations is our business name, generally manufacturing
accessories made out of our primary raw material polymer clay. Our
target markets are high school and college students of both public and
private sectors who are, in general, fond of beautifying and embellishing
their bags, cell phones, etc., with accessories. The distinct advantage of
our product compared to other accessories is that ours can be
personalized according to our customers preferred color, size or design.
Place
The manufacturing and display area of our product where all the
processing also takes place will be at Door 5, Eltanal Apartment
Redemptorist Street, Tibanga, Iligan City. The displays are noticeable for
the public since the location is along a highway where all passersby can
see. It is very accessible to the target customers also because of its
proximity to a nearby university.
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Place of Production
Floor Plan
Inside the
Apartment
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Distribution Area
Production
Area
DisplayArea
Office
Office
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Display Area
This 3d picture shows the Head office and plant site of the
business. The two cabinets beside the front windows are the main
display area where the customers can easily see the products.
Price
The product price of the name tag is P 50.00 per unit and P 75.00
for every chibi doll.
Production
Area
DisplayArea
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Nametag:
Account Quantity perNametag
Unit Cost Unit Price
Raw MaterialClay 14.28 g 130.00 18.57Varnish 5 mL 50.00 0.02Keychain 1 pc. 1.75 1.75
Total Cost of RawMaterials:
20.34
Add: Packaging CostCellophane 1 pc. 0.25 0.25Sticker Paper 1 pc. 3.00 0.12
Printing 1 pc. 1.00 0.04 Total Packaging Cost 0.41Add: Labor Cost 1 Nametag 8.00 8.00Total Product Cost 28.75
Total Projected Cost 28.75
Add: Mark-up 21.25
Selling Price PHP 50.00
Mark-up Percent = (Selling price Total Cost)/Total Cost
= (PHP 50.00 PHP 28.75)/PHP 28.75
= PHP 21.25/PHP 28.75
= .74 or 74%
Chibi Doll:
Account Quantity per Doll Unit Cost Unit Price
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Raw MaterialClay 20 grams 130.00 26.00Varnish 7 mL 50.00 0.03Keychain 1 pc. 1.75 1.75
Eyepin 1 pc. 1.00 1.00 Total Cost of RawMaterials:
28.78
Add: Packaging CostCellophane 1 pc. 0.25 0.25Sticker Paper 1 pc. 3.00 0.12Printing 1 pc. 1.00 0.04
Total Packaging Cost 0.41Add: Labor Cost 1 Chibi Doll 10.00 10.00Total Product Cost 39.19
Total Product Cost 39.19
Add: Mark-Up 35.81
Selling Price PHP 75.00
Mark-up Percent = (Selling price Total Cost)/Total Cost
= (PHP 75.00 39.19)/39.19
= .91 or 91%
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Promotion
Strategies involved in the sales promotion of our product will be
through social networking sites such as Twitter, Facebook, Multiply, our
website which is www.claycreationsfs.webs.com, and through tarpaulin
postings outside the project site where all the passersby can see.
Gantt Chart
This shows the project schedule or the Gant Chart of the business,
and the activity period of the business.
ctivities September October November December
Organizing
Planning
Fund
Sourcing
Registration
Purchasing
Promotion
Start o
Operation
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Cost of Goods Sold
Cost of Goods Sold per month 10,870.40
Multiplied by 12 months 12Cost of Goods Sold for year 1 130,444.8
Multiplied by 0.1
Increase for the year 130,444.8
Add: COGS (Year 1) 130,444.8
Cost of Goods Sold for year 2 143,489.28
Multiplied by 0.1
Increase for the year 143,489.28
Add: COGS (Year 2) 143,489.28
Cost of Goods Sold for year 3 157,838.28
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SALES FORECAST
Nametag:
40 pcs. per week x 4 160pcs./month
Multiply by selling price x P 50.00
Sales per month P 8,000.00
Number of months per year x 12
Sales for the year 2012 P 96,000
Chibi Doll:
40 pcs per week x 4 160pcs./month
Multiply by Selling Price x P 75.00
Sales per month P 12,000.00
Number of months per year x 12
Sales for the year 2012 P 144,000.00
Total Sales P 240,000.00
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Yearly Projected Sales
YEAR
Annual Demand Selling PriceAnnual
Target SalesChibi Doll Nametag ChibiDoll
Nametag
2012 P144,000.00 P96,000.00 P75.00 P50.00 P240,000.00
2013 165,600.00 110,400.00 75.00 50.00276,000.00
2014 190,440.00 126,960.00 75.00 50.00317,400.00
Note: There is an increase of 15% in annual demand.