Feasibility Study PDF

Preview

Summary

Feasibility Study: Tote bag...

Description

I. EXECUTIVE SUMMARY A. Type of Business. Artsy Aesthetic Enterprise is a partnership type of business composed of three (3) partners. It is a merchandising business that involves customization of products located at Canduman, Mandaue City. 1. Nature. The business is engaged in selling of canvass tote bags in which it is uniquely designed using an acrylic paint. This gives the customer a freedom in expressing their artistic side within themselves. 2. Name. The name of the business will be Artsy Aesthetic Enterprise. Product. Hand Painted Tote Bag provides a defining point of difference from other tote bags sold in the market. It is uniquely designed using an acrylic paint that creates a vibe on the tote bag itself. The customers can choose their own design on the tote bag but only limited on quotes and their names. The product gains a positive response and acceptance from its customers having it well thought out its innovative and unique business concept.

B. Management, Marketing and Financial Highlights Management. The business is in the form of a partnership consists of coowners namely Jeanette Gurrea, Ivy Joy Booc and, Jean Bulalaque. The partners will take hands-on management positions in the business since the proponent wants to know the process of the product by themselves. Three (3) employees will hire in the business since it has commenced. The business guarantee that the product will be handle carefully. The proponent advised that the products are free from defects in which prospective customers cannot return them. The business will be registered to have a Certificate of Business Registration for legal purposes.

Marketing. Tote Bags has numerous uses, it is more durable than any of the markets available bags. This option creates exactly the way you want, which is good for customized and promotional purposes. To increase sales, tote bags will be available at a reasonable price for good quality. Also, the business will be registered to the Department of Trade and Industry (DTI) and will comply with permitting and licensing requirements that are required for its operation. Social media purpose would have a direct impact on sales and used to raise visibility among the public, to promote and remind the product to customers. . This platform enables customers to access information quickly to the business. Facebook is one of the social media that is used, the ability of Facebook to like was shown by Facebook users, the product and brand allow the opportunity to explore the interaction between social ties and the business. The business promoting the brand across all of the channels on social media and promoting resources can assist in shaping the product and also benefiting our outreach to customers. On social media, an online order form will be advertised, the business will allow the customer to select a design that will be posted on the business page and choose a pre-made tote bag. As an encouragement to the customer, online sales are cheaper. Financial. Approximately four hundred thousand pesos (Php 400, 000) will be the proposed capitalization of the business with an estimated annual sales in volume of two thousand to three thousand pieces (2, 000-3, 000) and sales in pesos in the first year will be at six hundred thousand to six hundred ten thousand pesos (Php 600,000-610, 000); net income would be approximately four hundred thousand to four hundred ten thousand (Php 400,000-410, 000). The selling price per bag is one hundred ninety-nine pesos (Php 199.00). The business will operate with six working days a week for the whole year, the business will assume eight working hours a day for the processing. In the first year, the business expect to be generating profits and every month thereafter.

C. Socio – Economic Contributions This proposal is projected to have a big contribution in the country especially on our economy. Totes are in trend, not just because it prevails fashion, but because they are touted as a feasible and perfect substitute to plastic bags. It will serve as an instrument to support the programs on discouraging the use of plastic bags by selling and advertising tote bags not just for fashion sense but also to be used as shopping bags. Also, Artsy Aesthetic Enterprise will provide a formal on-the-job training to Senior High School and college students who requires for their course before they graduate. Lastly, the project is expected to help the government as it would reduce unemployment rate in the community and it could contribute taxes that will eventually lead to the development of communities and other government service.

II. MARKETING PLAN A. Product to Sell The product is a customizable tote bag providing a defining difference from other tote bags being sold in the market. It is aesthetically designed and hand painted using an acrylic paint. The design could be geometric shapes, abstract painting, landscapes, starry night, flowers, quotes and names. It has the capacity to carry many things such as pens, notebooks and other personal things. Also, it is convenient to use on a daily basis for it easily matches your outfit and blends with environment. The fact that it is customizable and painted, the quality of the tote bag is sturdy, reusable and can still be washable without worrying the design might fade away instantly.

B. Target Market 1. Area Coverage Tote bags business will target within region of Mandaue City, particularly Canduman Mandaue City where the warehouse is located. The customer within Mandaue City favorable for purchasing the products. Also, the business assures the customers will be accepting meet up. To have quick access, the business will post the meet up location and payment method on social media Since the business plans on selling online due to pandemic, the proponents believed that the business should focus in promoting and advertising the

product insocial media such as facebook and instagram where the customers can easily access the business to purchase or buy the product.

2. Consumer / Customer The Artsy Aesthetic Enterprise target market within the ages of 23-38 years old (millenials) and the ages of 16-23 (young adults). One of the targets is women’s chosen ages. Women are considered to be very inclined to fashion, and customers think about all color-coordinated things just to complement what they are wearing with their outfit. Also, the product will be suitable for any gender who loves fashion, they are chosen as they are the most reliable market to buy or purchase the product. The young adults and millennial is considered as the primary target of the business however, the business decided not to limit our target market. Tote bags attract women because it has sustainable innovation, has numerous uses, it is reusable and the product is eco-friendly. Also, catering to everyone regardless of age, color, race, sex, and social status of the customer would be a great satisfaction for the business.

C. Demand and Supply Analysis 1. Total Potential Demand

Market Demand

IG Store; 40.00%

FB Market; 60.00%

IG Store

FB Market

Statistical data was collected from teens, working women, shoppers and students by survey through electronic means. Figure 1. The percentage above indicates the total potential demand for tote bags of Artsy Aesthetic Enterprise. The figure shows above assumptions that, there are around 60% customers that will buy tote bags through Facebook market, and 40% through Instagram store. The Artsy Aesthetic Enterprise is engage in direct selling which promotes internet marketing and as shown on the figure, Facebook market has the major percentage of demands and followed by the company’s IG Store with 40% of demand. The millennials will be the major target market of the company and Facebook will be the tool to attract and captive audience since it is a favorable environment to drive the sales drastically high. Also, online shopping is seen as a convenient method of purchasing and the company thinks of it as an open opportunity to sell tote bags as there are millions of people searching for product nowadays and online shopping is increasing year by year. The Instagram stores has the lowest percentage of total market demand since this application according to survey is not commonly used especially

by aged persons and if compared by Facebook, it has the low number of time spent on this app. 2. Present Supplier Competition Evidently, there is already a competition in the bag industry where tote bag is offered in various forms, designs and sizes. These competitors can be identified as an indirect competitors since the hand painted tote bag of the enterprise differs from other type of bags being sold in the market. Also, the existence of these mere competitors are not really a big threat because if compared to the usual bags available in the market, the Artsy’ hand painted tote bag would surely stand out as it offers customization and more modern designs.

D. Projected Sales 1. Per Month

Sales in Pesos 100000 90000 80000 70000 60000 50000 40000 30000 20000 10000 0

r r ry ry be be ua ua m m r n b ce Ja ve Fe De No

ch ar M

Ap

ril

ay M

ne Ju

Ju

ly

s gu Au

t

r r be be o m t e Oc pt Se

Sales in Volume 500 450 400 350 300 250 200 150 100 50 0

r r be be m m ce ve De No

y ar u n Ja

u br Fe

y ar

ch ar M

Ap

r il

ay M

ne Ju

Ju

ly

s gu Au

t

r be m e pt Se

b to Oc

er

2. In Volume and Pesos The proponent believes that the sales will steadily increase at the commence of Artsy Aesthetic Enterprise because it is in favor to the customers who is inclined to fashion and tote bag can be reused for a long period. Marketing will promote and advertise the brand through social media.

Months

YEAR 1 Nos. of bag sold Sales in Volume per day

Sales in Pesos

November

150

5

Php 29, 850

December

248

8

Php 49, 352

January

310

10

Php 61, 690

February

196

7

Php 39, 004

March

465

15

Php 92, 535

April

360

12

Php 71, 640

May

186

6

Php 37, 014

June

240

8

Php 47, 760

July

279

9

Php 55, 521

August

279

9

Php 55, 521

September

300

10

Php 59, 700

October

372

12

Php 74, 028

Total

3, 385

Php 673, 615 YEAR 2022

Total

5, 550

1, 104, 45O YEAR 2023

Total

8, 050

1, 104, 450

A. Marketing Programs / Strategies 1. Practices of Competitors There are many different kinds of bag being sold in the market today. Bags are designed to carry everything from school books to personal things or they may simply be a stylish fashion accessory carrying little more that the weight of make-up also known as kikay kit where a woman could have. The edge of tote bags from other types of bag is that it is versatile, fashionable and adaptable. Nowadays, tote bag have become a fashion statement and fulfill practice needs in life. There are great tote bags sold in the market today and it only varies in their design namely logos and pictures. Hand painted tote bag separates from other tote bags available in the market and its design is

distinctive. Canvass tote bag is being used to make sure the idea of color and contrast blends correctly showcasing a good effect on the bag. 2. Own Marketing Programs / Strategies Marketing Objectives. The proponents aim to gain a considerable customer support from the time this will be introduced to the market up until its growth and maturity stage of the business. Along with the proposed marketing strategies, hand painted tote bag aims to increase its sales by 10% annually from the first operation of the business by increasing demand and enhancing the quality of design on the bag. Pricing. Hand Painted Tote Bag will be sold at P199.00. The price covers the cost of tote bag, packaging and acrylic paint used in designing the bag. The proponents believe that the product can keep up to the growing competition of tote bags being sold in the market as it falls on similar price ranges set by other competitors.

Distribution. From the business’ processing site, Hand Painted Tote Bag will be posted through Facebook and Instagram since most of consumers during this pandemic are into online and social media platforms . Once the pandemic restrictions are lifted by the government, it will also be distributed to several souvenir shops to widen its distribution channel.

Processing Site ( Artsy Aesthetic Enterprise )

Promotion Facebook

Instagram

End Consumers

Figure 2. Distribution Flowchart

Packaging. Hand painted tote bag will be wrapped with a brown paper pouch that has a distinct design painted with the company’s logo and a ribbon on the top that makes the packaging looks elegant and serves as the opening and lock area of the packaging. The packaging is an environment and user friendly and easy to dispose. Also, if the customer decides to order in bulk, the packaging would be in a big box and just like the paper pouch, it will be designed with a ribbon and printed with the company logo. Promotion. The company uses a social media promotion strategy to create awareness on the existence of the brand. This platform would allow customer to easily inquire and obtain information about the business. Also, Artsy Aesthetic Enterprise has other ways of promoting the product. A significant portion of our company’s promotion strategy involves the use of the following:  Sponsoring events on Facebook that would result to the product’s exposure.  Giving coupon discounts to customers on special occasions such as Christmas events, New Years, Fiestas and other occasions that will gather Shoppers.  Give-aways will also be present on the company’s opening and anniversaries. These promotion strategies will help us to gain more possible customers and boost our sales and serves as the basis for the improvement and development of our business. Advertising. Social media advertising helps to reach out to customers and gain brand recognition in customers much more quickly and easily. A social media marketing strategy will generate communication about the brand, products, and partners. Below are the additional advertising strategies to raise business product recognition as well as to sell the products to the customer and ultimately expand its target market. The business will use the following channels in advertising the product.  Social Networking (Facebook and Instagram)  Microblogging

 Photo Ad ( Facebook page or Facebook Business Manager)  Video Sharing (Facebook Live)

Marketing / Selling Expenses Particulars

Cost

1. Sponsorship on Facebook

Php 15, 000.00

2. Coupons Discount

5, 000.00

3. Give-aways

5,500.00

4. Well-Designed Paper Pouch

3,000.00

5. Business Cards

2, 500.00 Total

Php 31,000.00

Assumptions: 1. The company plans to Sponsor local bands, events on Facebook in return for promoting the company’s product and gather audience which can be an opportunity to connect with existing customers with a total budget of P 15, 000. 2. Coupons Discount of the company will only available occasionally and is expected to build an engagement and loyalty with the customer with allotted budget of P 5, 000. 3. Give-away will be available on the opening and in every anniversary of the company with a budget of P 5, 500. 4. During this pandemic, giving fliers is not as effective as before because people now tends to distance themselves from other people. In lieu, the company will provide customers a well-designed paper pouch that is very catchy and could eventually get potential customer’s attention. 5. It is expected to have a higher price on business cards during the first years, since the company plans to attach business cards on every first purchase.

Sales in Pesos

ne Ju

Ju

ly

s gu Au

t

r r r r be be be be o m m m t e ce ve Oc pt De No Se

nu Ja

Sales in Pesos

y ar

u br Fe

y ar

ch ar M

Ap

ril

ay M...