THE 2017 NRCO-ISP BUSINESS PLAN COMPETITION - Multivit 5 in 1 Skin Lightening Soap Business Plan - Reynaldo T. Gonzalo Jr. and Gladys C. Gonzalo ...
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Multivit 5 in 1 Skin Lightening Soap
Business Plan
Submitted to
THE 2017 NRCO-ISP BUSINESS PLAN COMPETITION
Prepared and Submitted by
Reynaldo T. Gonzalo Jr.
and
Gladys C. Gonzalo
October 2017
Page 1 of 41
TABLE OF CONTENTS
1.0 Executive Summary…………………………………….…………………………………….…………………………..4
1.1 The Product………………………………………….…………………………………….……………………………..….4
1.2 The Market..……………………………………….…………………………………….………………………..……..….4
1.3 Selling Proposition..……………………………………….…………………………………….……………..……..….4
1.4 Vision..………………….…………………………….…………………………………….………………………..……..….4
1.5 Mission..………………….…………………………….………………………………….………………………..……..….4
1.6 Sourcing..………………….………….……………….………………………………….………………………..……..….5
1.7 Financial Forecast..….…………………………….………………………………….………………………..……..….5
2.0 Company Summary..….…………………………….………………………………….…………………..……..……..5
2.1 Company Ownership………………………………………….…………………………………….…………………….5
2.2 Start-up Summary…..………………………………………….…………………………………….…………………6-9
2.3 Company Location & Facility…………..………………….…………………………………….…………………….9
3.0 Product..….…………………………….………………………………….…………………..……..………………………..9
3.1 Product Description………………………..………………….…………………………………….……………….9 -10
3.2 Suppliers……..….…………..…………………..…………………………………………….…………………….……….10
3.3 Technology……..….…………..…………………..…………………………………………….……….…………….…..10
3.4 Production Plan…….………………………..………………….…………………………………….……………………11
3.4.1 Production Policy….………………………..…………….…………………………………….……………………11
3.4.2 Soap Making Procedure….………….…..…………….…………………………………….………..…………11
3.4.3 Process Flow Chart……..….………….…..…………….…………………………………….…………..………12
3.5 Competitive Comparison….………………………..…………………………………………….………….……….13
3.6 Competitor Analysis……..….………………………..…………………………………………….………….……….13
3.7 Sales Literature……..….…………..…………………..…………………………………………….………….……….14
3.8 Future Products……..….…………..………………..…………………………………………….…..……………….14
4.0 Market Analysis Summary..….…………………………….…………..……………..……..………………………14
4.1 Market Segmentation……..….…………..…………………..…………………………………………….…..…….14
Demographic Segmentation……..….…………..…………………..……………….………………….…..…….14
Market Share …………………….……..….…………..…………………..……………….………………….…..…….14
Market Survey …………………………..….…………..…………………..……………….……………..….…..…….14
Market Share (Graph 1)……………………………………..….…………..……….………..………..….…..…….15
Market Survey (Graph 2)……………………………………..….…………..……….………..………..…….…….15
4.2 Marketing Strategy……..….…………..…………………..……………………………………………………..…….16
5.0 Strategy and Implementation Summary.…………….…………..……………..……..………………………16
5.1 Strategy Pyramid……..……..….…………..…………………..……………………………………….…..…….16-17
5.2 SWOT Analysis….……..……..….…………..…………………..…………………………………………….…..…….17
5.3 Potential Strategies for Growth.……..…………………..…………………………………………….…..…….17
5.4 Competitive Edge…………………….……..…………………..…………………………………………….…..…….17
5.5 Positioning Statement……………..……..…………………..…………………………………………….…..…….18
5.6 Pricing Strategy……………………….……..…………………..…………………………………………….…..…….18
5.7 Promotion Strategy………………...……..…………………..…………………………………………….…..…….18
Page 2 of 41
5.8 Distribution Strategy……………….……..…………………..…………………………………………….…..…….18
5.9 Marketing Programs……………….……..…………………..……………………….…………………….…..…….18
5.10 Sales Strategy………………………….……..…………………..………………………….………………….…...18-19
5.11 Sales Forecast………………………….……..…………………..…………………………………….…………….19-20
5.12 Partners……….………………………….……..…………………..…………………………………………….…..…….20
5.13 Milestones………………………….……..………………………………………………..……………….………….20-21
6.0 Management Summary.…………………………………….…………..……………..……..………………………21
6.1 Management Team……………………….……..…………………..……………………………………….…..…….21
6.2 Personnel Plan……………………….……..…………………..…………………………………..………….…..…….22
7.0 Waste Management Plan.…………………………………….…………..……………..………..…………………22
8.0 Socio-Economic Impact.…………………………………….…………..……………..………..………..………23-24
9.0 Financial Plan.…………………………………….…………..……………..……..…………………..…………………24
9.1 Important Assumptions……………………….……..…………………..……………………..………….…..…….24
9.2 Break-even Analysis…………………………….……..…………………..……………………..………….…..…….25
9.3 Projected Cash Flow…..……………………….……..…………………..……………………..…….………..….….26
9.4 Projected Income Statement……………….……..…………………..……………………..…….…..…….26-28
Cost of Goods Manufactured Statement…………..……………………………….…..………….…..…….28
9.5 Projected Balance Sheet…………………………….……..…………………..……………….…….…..…….29-30
9.6 Ratio Analysis…………………………….……..…………………..……………………..………….…..………………30
10.0 Exit Plan.……………………………….…………..……………..……..…………………..…………………………31
11.0 Appendices.……………………………….…………..……………..……..……………...…………………………32
11.1 Proposed Business Location……………….……..…………………..……………………..………….…..…….33
11.2 Emmanuel’s Goat Farm……………………….……..…………………..……………………..………….…..…….34
11.3 How This Filipino Farmer's Son Made it to Harvard………..………………..…….………..….….35-38
11.4 Cost of Goods Manufactured per Unit…………..………………..……………………..…….…..…….39-40
Page 3 of 41
1 EXECUTIVE SUMMARY
1.1 The Product
Our business proposal is to manufacture a multivitamin soap that contains 5 natural
ingredients namely; Malunggay, Tomato, Goat’s Milk, Calamansi and Papaya, which are proven
effective in whitening and smoothing the skin. Normally, a single customer purchases different
varieties of specialty soaps like anti-acne, anti-wrinkle, rejuvenating, etc. So, we decided to offer
a total packaged soap wherein the customers can find most of their needs in just one product.
Multivit 5 in 1 Skin Lightening Soap is like an all in one soap because it solves most of the skin
problems that people encounter like aging, acne, dark spots and blemishes. The product will be
sold for approximately Php50.00 per 130g bar.
1.2 The Market
In recent years, Filipino men and women have become increasingly willing to spend on beauty
soaps in order to look good. Our Asian culture and mass media greatly affect the demand for
using skin-lightening products because they primarily set the standard that having white skin is
associated with beauty, cleanliness and purity.
In the Philippines, whitening soaps are considered big business. The skin care industries’
revenue reached approximately US$915m in 2017. The market is expected to grow annually by
7.6% (CAGR 2017-2021). Source: https://www.statista.com/outlook/70000000/123/cosmetics-
and-personal-care/philippines#market-revenue
1.3 Selling Proposition
We will offer our product to customers who cannot afford or doesn’t want to spend a lot
of money on expensive cosmetics, injectables and surgical operations just to get their desired
complexion.
We will strongly encourage stay at home parents whose husbands or wives are Seafarers,
OFWs or even Local workers to become our Retailers. We will train them how to sell our soap so
that they can earn money on their own. Through this, they could help their spouses in other
household expenses while taking care of their children at home.
1.4 Vision
Our vision is to be our country’s one of the most important brands in soap industry. We
envisioned our company as a formulator of beauty soap that brings inspiration to everyone to
look best for themselves.
1.5 Mission
Our mission is to make and develop the right product for our customers. We will also
provide opportunities for Filipinos to earn additional income by being our Resellers or Suppliers.
Page 4 of 41
1.6 Sourcing
The raw materials needed for Multivit soap are easily sourced and multiple suppliers have
been identified. Initially, caustic soda flakes, essentials oil and colorants will be sourced from a
reputable chemical company in Quezon City. We will acquire various oils from an oil company in
Malabon. Malunggay powder will be obtained from a Malunggay plantation in San Miguel,
Bulacan. Goat’s milk will be supplied by a Goat farm in Marilao, Bulacan. We will purchase fresh
vegetables and fruits for our active ingredients in large markets nearby like Polo Market in
Valenzuela and Meycauayan Peoples’ Market.
The creation of Multivit soap will bring additional income to our rural and small-scale farmers
within our community and nearby provinces. Sourcing our agricultural raw materials can help
improve the peoples’ livelihood and our local economy as well.
1.7 Financial Forecast
Based on our financial forecasts, our company will need Php500,000.00 in start-up capital,
but will generate positive cash flow by the end of Year 1. By the end of Year 3, the company will
be generating Php467,906.25 in sales with considerable net profit.
Financial Projection
₱500,000.00
₱400,000.00
₱300,000.00
₱200,000.00
₱100,000.00
₱-
Year 1 Year 2 Year 3
Sales Gross Margin Net Profit
2 COMPANY SUMMARY
Our company will be established primarily as a Sole Proprietorship. We will develop and
market soaps that are safe, made with natural ingredients that can make the skin whiter,
smoother and more glowing without any harmful side effects. The company will initially rent a
15-square meter space in Dalandanan, Valenzuela.
2.1 Company Ownership
The owner will be the manager of the company. Eventually as the business continue to
grow, we will attract potential investors that will help in the financing and operating activities of
the business in order to serve more customers nationwide. Hence, the company will gradually be
transforming from Sole Proprietorship into Corporation in the future.
Page 5 of 41
2.2 Start-up Summary
Total funding required to get the business started is estimated at Php500,000. The whole
amount will be invested by the owner.
The key elements in the start-up plan for the company are:
❖ Development of a working prototype.
❖ Funding of working capital requirements and promotional materials for the principal
operating activities of the company.
❖ Establish a strong brand image early to position ourselves in the market.
START UP REQUIREMENTS
Sources of Capital
No. Particulars Amount
1 Owner's Investment 500,000.00
Total 500,000.00
Start-Up Expenses
Legal & Professional Services
No. Particulars Amount
1 Permits and Licenses 10,000.00
2 Legal and Accounting Fees 1,000.00
3 Consultancy Fees 5,000.00
4 Research and Development 5,000.00
5 Government Compliance & Testing Services 30,000.00
Total 51,000.00
Advertising & Promotion
No. Particulars Amount
1 Flyers 100.00
2 Signages & Tarpaulin 500.00
3 Giveaways 500.00
4 Prizes 300.00
5 Sponsorship & Events 1,000.00
Total 2,400.00
General and Administrative
No. Particulars Amount
1 Electricity 250.00
2 Water 100.00
Page 6 of 41
3 Internet 360.00
4 Telephone 300.00
6 Salaries 5,200.00
7 Insurance 250.00
8 Travel 400.00
9 Rent 1,000.00
Total 7,860.00
Manufacturing Tools
No. Particulars No. Required Price Amount
1 Hand Mixer Big 1 200.00 200.00
2 Mixing Pail 1 150.00 150.00
3 Pitcher 1 35.00 35.00
4 Sangkalan 1 35.00 35.00
5 Soap Cutter 1 3,500.00 3,500.00
6 Soap Mould 1 3,000.00 3,000.00
7 Spatula 1 50.00 50.00
8 PH Tester 1 700.00 700.00
9 Weighing Scale 1 600.00 600.00
Total 8,270.00
Supplies
No. Particulars No. Required Price Amount
1 Apron 1 50.00 50.00
2 Ballpen 1 8.00 8.00
3 Broom 1 50.00 50.00
4 Dishwashing Soap 1 45.00 45.00
5 Disposable Gloves 10 1.00 10.00
6 Dust Pan 1 35.00 35.00
7 Face Mask 10 1.00 10.00
8 Garbage Bag 10 2.00 20.00
9 Gloves 1 75.00 75.00
10 Hair Net 1 25.00 25.00
11 Katsa 3 5.00 15.00
12 Knife 1 50.00 50.00
13 Other Supplies 1 200.00 200.00
14 Rug (Rectangle) 1 35.00 35.00
15 Rug (Round) 5 1.50 7.50
16 Safety Goggles 1 75.00 75.00
17 Sponge 2 8.00 16.00
18 Trash Can 2 75.00 150.00
19 Vinegar 1 40.00 40.00
Page 7 of 41Total 916.50
Soap Samples for Testing
No. Particulars No. Required Price Amount
1 Soap Samples for Testing 10 17.75 177.54
Furniture and Fixtures
No. Particulars No. Required Price Amount
1 Table 2 500.00 1,000.00
2 Chairs 1 250.00 250.00
3 Storage Rack 1 1,000.00 1,000.00
Total 2,250.00
Machinery and Equipment
No. Particulars No. Required Price Amount
1 Mixing Machine 1 6,000.00 6,000.00
2 Filling Machine 1 6,000.00 6,000.00
3 Electic Fan 1 1,000.00 1,000.00
4 Light Bulb 1 50.00 50.00
5 Exhaust Fan 1 600.00 600.00
6 Refrigerator 1 5,000.00 5,000.00
7 Radio 1 250.00 250.00
8 Juicer 1 2,000.00 2,000.00
Total 20,900.00
Renovation
No. Particulars Column1 Column2 Amount
1 Renovation 2,000.00
Start-Up Cost of Goods Manufactured
Starting Cost per
No. Particulars Inventory soap bar Amount
1 Direct Materials Used 1,000 12.21 12,207.66
2 Direct Labor 1,000 2.31 2,312.50
3 Factory Overhead 1,000 3.23 3,233.65
Total 17.75 17,753.81
Working Capital
Period
No. Particulars (months) Amount
1 Cash 12 60,000.00
2 Ads & Promo 12 28,800.00
Page 8 of 413 Utilities 12 12,120.00
4 Salaries 12 62,400.00
5 Insurance 12 3,000.00
6 Travel 12 4,800.00
7 Rent 12 12,000.00
8 Supplies 12 916.50
9 Cost of Goods Manufactured 12 213,045.77
Total PHP 397,082.27
TOTAL COST OF PROJECT
No. Particulars Amount
1 Legal & Professional Services 51,000.00
2 Soap Samples for Testing 177.54
3 Renovation 2,000.00
4 Manufacturing Tools 8,270.00
5 Furniture and Fixtures 2,250.00
6 Machinery and Equipment 20,900.00
7 Start-Up Cost of Goods Manufactured 17,753.81
8 Working Capital 397,082.27
Total 499,433.62
2.3 Company Location and Facility
The management team of will initially rent a 15 square-meter rental space in Dalandanan,
Valenzuela to run operations. When the need to produce more soaps arises, we will eventually
move to a larger facility.
3 PRODUCT
We will be providing a product that has 5 natural ingredients which are proven effective
in whitening and smoothing the skin. A customer usually buys different variety of specialty soaps
like anti-acne soap, anti-wrinkle soap, rejuvenating soap, skin lightening soap and many more.
So, we come up with the idea of making a total package soap wherein the customers can
find most of their needs in just one product.
3.1 Product Description
Multivit 5 in 1 Whitening Soap is like an all in one soap because it solves most of the skin
problems that people encounter like aging, acne, dark spots and blemishes.
The product will be initially sold for Php50.00 per 130g bar.
Page 9 of 41Below are the ingredients to be used in manufacturing Multivit Soap.
INGREDIENTS PURPOSE
Sodium Hydroxide Essential Ingredient in Soap making process
Palm Oil Smoothens the skin
Canola Oil Moisturizes the skin
Coconut Oil Cleanses the skin
Lavender Essential Oil Refreshing smell / With calming effect
Distilled Water Dissolving oxidizers
Orange Colorant Coloring Agent
Red Colorant Coloring Agent
Green Colorant Coloring Agent
Yellow Colorant Coloring Agent
Titanium Dioxide Coloring Agent
Malunggay With Anti-ageing properties
Tomato Cures sunburns / Protects the skin from UV rays
Goat's Milk Natural cleanser / Rejuvenates skin cells
Calamansi Whitens the skin / Deodorizes the skin
Papaya Gently exfoliates the skin
Preservative Prevents growth of bacteria / Extends the lifespan
of the soap
Healthy skin is the basis for handsomeness and beauty. While there may always be times
when your skin isn’t ideal, it’s significant to understand that using a soap with right nutrients will
continually improve your skin.
3.2 Suppliers
Our main suppliers are listed below.
Company Address Products
Emmanuel's Goat Farm Prenza 1 Marilao Bulacan Goat's Milk
GreenEarth Heritage Foundation Brgy Sibul, San Miguel Bulacan Malunggay Powder
Polo Public Market Polo, Valenzuela City Tomato, Papaya, Calamansi
Malabon Soap & Oil Industrial Co Luna II Street, Malabon City Palm, Canola, Coconut Oil
Alysons' Chemical Enterprises, Inc. Del Monte Avenue, Siena, QC Essential Oil, Colorant, Lye
Sogomi Corporation Diliman, Quezon City Preservative
3.3 Technology
The company will initially buy semi heavy-duty soap making equipment such as mixing
and filling machines that can produce as much as 8,000 pcs of Multivit soaps per month.
Page 10 of 413.4 Production Plan
3.4.1 Production Policy
❖ Quality checks are in place throughout the manufacturing process.
❖ At first, the manufacturing process will be supported by an excel program that will keep
track and monitor the inventories, invoicing and day to day operations.
3.4.2 MULTIVIT 5 IN 1 SOAP MAKING PROCEDURE
❖ 1st Mixture (Lye Solution)
1) Put lye into the water (Not the other way around).
2) Stir the mixture gently.
3) Put the lye solution in a plastic container and set it in safe place.
Cover the container and let it cool down.
4) Once it cools down, split it equally into five containers.
❖ 2nd Mixture (Combining Oils)
1) Melt the solid oils on the stove over medium-low heat while stirring gently.
2) Remove the melted oils from the heat and let it cool down at room temperature.
3) Combine the liquid and melted oils.
4) Split the oils equally into five containers.
❖ Final Procedure
1) Slowly add the container 1 of 1st mixture to the container 1 of 2 nd mixture.
2) Mix it to start the chemical reaction that turns the mixture into soap.
3) Once the combined mixture become like the texture of a condensed milk,
put the desired colorant, active ingredient and essential oil.
4) When the ingredients in the 1st containers are mixed, start pouring the
mixture into the soap mold.
5) Repeat the procedure for 2nd to 5th containers in the order of Red, Orange,
Yellow, Green, and White.
6) Cover the mold and wait for 24 hours until it becomes hard.
7) Remove the hardened soap from the mold and cut the bars horizontally.
8) Place the soaps in a safe, dry place and allow it to cure for 3 weeks
before packaging.
Page 11 of 413.4.3 PROCESS FLOW CHART OF MULTIVIT SOAP
Start
Raw Materials
Selection
Juicing/Pureeing
Ingredients
Soap Making
Soap Curing
FAIL
Quality Control Soap Rebatching
PASS
Soap Packaging
Soap Labeling
Delivery
End
Page 12 of 413.5 Competitive Comparison
The competition for skin lightening soap business is very strong. There are hundreds of
whitening soaps that are being sold in the market. Upon researching, its top competitors are
Dove and Silka. The comparison between Multivit and the two market leaders in different
perspectives are shown below.
3.6 Competitor Analysis
Title Multivit Dove Silka
Multivit is a soap that
gently whitens skin due to
Dove is a beauty bar Silka is a papaya bar soap
Product its five main ingredients;
with 25% enriched with papaya
Description papaya, goat's milk,
moisturizing lotion enzymes and vitamin E
malunggay, calamansi and
tomato
The target group of
The target groups of The target groups of
Target Dove is particularly
Multivit are men and Silka are men and
Market women above 18
women age 15 & above women age 15 & above
years
"Tiis sa hapdi? *'Real beauty
"A natural and effective
Positioning Tiis sa bulsa? campaign'
way to cleanse and
Strategy Huwag mag-Tiis Ganda *To feel beautiful in
whiten your skin"
Mag-Multivit na" their own skin
It helps improve the It cleanses and nourishes
It has both
Product condition of skin by skin by removing dead
moisturizing and
Benefits making it lighter and skin cells for a clearer
cleaning properties
smoother complexion.
Silka Papaya products
*To be distributed locally Globally distributed,
can be bought in the
Distribution thru Resellers, Online products are sold as
Philippines thru
Availability as well brand to customers
Supermarkets
The 130g bar of Multivit Pricing ranges from
Pricing ranges from
Pricing will be priced around Php48.00 to
Php20.00 to Php150.00
Php50.00 Php125.00
* Social Media Ads *Has highly
*Has highly informative
*Bazaars / Print Ads informative website
Promotion website *Advertisements
*Giveaways and *Advertisements
*CSR campaign"
brochures *CSR campaign"
Competitive
Challenger Leader Leader
Classification
Even though Dove and Silka are far and away the market leaders with an estimated
market share of 33%, Multivit is a much-improved product in this rapidly growing soap industry.
Page 13 of 413.7 Sales Literature
In the future, we will outsource independent graphic designers, website developers and
print ad companies who will develop the logo, business cards, brochures, website, and display
ads. All will contain branding information to sell our new product while creating familiarity and a
positive image in the market.
Flyers will be distributed in the adjacent neighborhood, on university campuses, at the
malls and in LRT stations during start-up period.
Posting ads in newspaper publications, electronic signages and billboards are also
included in future plans to increase brand awareness of our potential customers nationwide.
3.8 Future Products
In the coming months or years, we will diligently continue to improve and develop our
product by researching on other effective natural ingredients that we can add to the product for
the maximum benefit of our customers.
4 MARKET ANALYSIS SUMMARY
The skin lightening soap industry in the Philippines is strongly influenced by the
importance of personal appearance and cleanliness. Because of this rising demand, our company
is believes that our product has a big potential to penetrate in the market.
4.1 Market Segmentation
As a brand, Multivit 5 in 1 Skin Lightening Soap segments the market in the following ways:
1) Demographic Segmentation:
-Under this segmentation, Multivit focuses on all men and women above 15 years old.
-These include men and women who are conscious about skin care. These people want
to use quality products. They also have good purchasing power since our target
consumers are in the working class and students who can afford to buy quality soap at a
reasonable price.
2) Market Share: A survey was conducted by Multivit to find out the segment of people who
prefer to use skin lightening soaps in their daily use. Based on that survey, 51% of Filipinos
are currently using whitening soaps. We could say that half of the Filipinos are avid
customers of soaps that promise to make their skin fair and glowing. (See Graph 1)
3) Market Survey: The analysis will show the preference of people in terms of the kind of
soap they like to use. Cleansing – 29%; Conditioning – 21%; Fragrance – 24%; Whitening
– 16%; Bubbly – 9%; Creamy – 1% (See Graph 2)
Page 14 of 41Graph 1
Jhonsons
MARKET SHARE body wash
Jhonsons 1%
Bioderm baby soap Tender Care
2% Cetaphil
Silka 2% 1%
1%
17% Dr. Wong
3%
Hygienix
3%
Dove
16%
Palmolive
Safeguard
6%
36%
Kojic
6% Flawlessly u
Likas Papaya Olay
4%
1% 1%
Graph 2
Page 15 of 414.2 Marketing Strategy
We will start by having regular marketing campaigns. Some of our campaigns are as follows:
- "Oplan Pagandahin si Nanay” Campaign
- Livelihood Programs to Different Baranggays
- Social Media Ads
- Giving flyers with attached sample soap
- Running a contest
- Attending Bazaars and Social Gatherings
- Sponsoring Beauty Contest and Other Events
- Tarpaulins and Print Ads to be given to resellers nationwide
- Giving samples and promos during holidays and anniversaries.
We will conduct aggressive advertising and heavy promotional strategies for us to be known
in the market. Our main marketing plan is the Multivit itself wherein if anyone who tried using
this soap, that person will be highly satisfied by its result. Therefore, they will serve as walking
advertisements that will tell everyone about their skin’s amazing transformation.
5 STRATEGY AND IMPLEMENTATION SUMMARY
Multivit plans to market itself through variety of methods to progressively gain market
share in the soap industry. Our company will build brand loyalty and create awareness of the
benefits of Multivit in our skin.
5.1 Strategy Pyramid
Our strategy is to develop Multivit as a brand that represents quality and value. The tactics
underneath this strategy and the programs we will put in place cover a broad range of disciplines.
They are presented here in the order of importance.
1. Product:
❖ Continually develop and bring Multivit to the market that represents a quality
product at a reasonable price.
❖ Innovate by formulating different variation, sizes, packaging and ingredients of
Multivit soap.
2. People:
❖ Search, boost and develop employees that are talented, passionate and
understand the concept of brand.
❖ Training, commissions and incentive programs will assist in inspiring our resellers
and sales agents to "walk the walk", and reward performance.
3. Targeted marketing programs
❖ Focus on PR campaigns and affiliations with different organizations that will
reinforce our brand image.
❖ Advertisements will be focused on the benefits of our product, both physical and
emotional. They will speak to the lifestyle our target customers desire to have.
Page 16 of 414. Controlled distribution at wholesale:
❖ Finding resellers who have customer image and strong belief in our product will
strengthen our brand image.
5. Implementation of Multivit website:
❖ Provide customers with knowledge for treating the skin.
5.2 SWOT Analysis
Strengths Weaknesses Opportunities Threats
Quality: We produce High startup costs: Growing market: The Competition: Dove
high-quality and freshly the very high cost market for whitening and Silka and other
made soap with five of opening a soap soaps is huge and inexpensive soaps
natural ingredients making factory will growing. are strong
that are proven require investment competitors in the
effective in skin and loans. market.
lightening.
Sales expertise: Our Time: Right now, Research & Government
founder has lifetime it’s just the founder Development: compliance: We
experience selling doing everything. Possible variations of need to follow the
everything (moral and Multivit soap in the standards of strict
legal) including soaps future. FDA and other
and other skin care government rules
products since and regulations.
childhood and teenage
years.
5.3 Potential Strategies for Growth
Multivit needs to investigate its options for obtaining capital. Funding a new business will
take time, and because it’s the step one of the long journey to profit, we must secure funding
before we begin production.
Multivit may want to consider adding a Research & Development team, to formulate new
products and keep the company’s operations well prepared for any changes in government rules
and regulations.
The company needs to find its niche in the market, and one effective way is to focus on
the company’s marketing and selling strategies.
5.4 Competitive Edge
Our company’s main competitive advantages will be:
❖ Quality ingredients and great soap formula.
❖ Strong salesmanship and superior customer service.
Page 17 of 415.5 Positioning Statement
"Tiis sa hapdi sa gamit mong sabon?
Tiis sa bulsa sa pinaturok mong injection?
Huwag nang mag Tiis Ganda,
Mag Multivit 5 in 1 Skin Lightening Soap ka na..
Affordable na, Safe pa."
5.6 Pricing Strategy
Pricing for the Multivit soap is Php50.00 per 130g bar for End users and Php35.00 for
Resellers. These are suggested retail and wholesale prices. They represent two times and three
times our estimated cost to manufacture, respectively.
Quantity discounts are not included but remain possible in negotiations with major buying
groups. Price may be changed in the future based on different factors such as increase in prices
of raw materials, upgrading of technology and equipment and other matters. However, the price
of Multivit is not expected to experience significant change over the next three years.
5.7 Promotion Strategy
Personal selling will be our most important means of promotion. We will lead this effort,
with our skill and experience in sales and customer service.
In addition to personal selling, the company will be involving in an aggressive marketing
program that will contain social media ads, event sponsorships, bazaars, print ads, and other
platforms to generate product awareness and value proposition. However, the company’s
immediate goal will be to generate profit to pay for such expenses. Our major marketing plans
will go into effect starting in year three. Prior to this, the company will use more modest
marketing tools such as social media advertisements, word-of-mouth marketing, and bazaar
participations.
5.8 Distribution Strategy
Initially, deliveries will be made thru the local and nationwide couriers like Xend, LBC,
Grab express, Grab motor rider, Cargo forwarder or Rent a truck for bulk orders. As the number
of orders increase, the need for a company owned delivery vehicle will continue to be evaluated.
5.9 Marketing Programs
Our best marketing program is to ensure that the customers’ expectations about our soap
will be exceeded. The customers who are happy about the soap they are using will eventually tell
friends about their positive experiences. A referral from a personal friend based on experience
are often the strongest recommendations that can be offered.
5.10 Sales Strategy
The sales strategy will be based on generating long-term relationships with customers. To
facilitate that, we will offer Multivit soap at the very reasonable price, have soaps in stock for
both quick shipment and store front pick up, and provide superior customer service.
Page 18 of 41All sales agents and resellers will be trained to provide friendly & knowledgeable
customer service. For some, having a smooth and beautiful skin is an integral part of their lives,
so establishing long-term relationships will ensure a large, loyal customer base.
5.11 Sales Forecast
The following table and chart presents specific forecasts by month, over the first year of
the business. As indicted in the table, our sales are forecasted to increase gradually, with an
annual growth rate of approximately 5%. Soaps are assumed to be sold after 3 months.
Sales Monthly
sales in peso sales in units
1200 45,000.00
40,000.00
1000
35,000.00
800 30,000.00
25,000.00
units
peso
600
20,000.00
400 15,000.00
10,000.00
200
5,000.00
0 -
Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12
sales in peso - - - 38,750 38,750 38,750 38,750 38,750 38,750 38,750 38,750 38,750
sales in units 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
Sales by Year
500,000.00 14,000
450,000.00
12,000
400,000.00
350,000.00 10,000
300,000.00
8,000
units
peso
250,000.00
6,000
200,000.00
150,000.00 4,000
100,000.00
2,000
50,000.00
- -
year 1 year 2 year 3
sales in peso 348,750.00 445,625.00 467,906.25
sales in units 9,000 11,500 12,075
sales in peso sales in units
Page 19 of 41Sales Forecast
Sales YEAR 1 YEAR 2 YEAR 3
Multivit Soap ₱ 348,750.00 ₱ 445,625.00 ₱ 467,906.25
Other ₱ - ₱ - ₱ -
TOTAL SALES ₱ 348,750.00 ₱ 445,625.00 ₱ 467,906.25
Cost of Sales Year 1 Year 2 Year 3
Multivit Soap ₱ 159,784.33 ₱ 204,168.86 ₱ 214,377.30
Other ₱ - ₱ - ₱ -
Cost of Sales ₱ 159,784.33 ₱ 204,168.86 ₱ 214,377.30
5.12 Partners
We will have three categories of Partners – our SUPPLIERS, our RESELLERS, and our
EMPLOYEES.
We will encourage competitive bidding among Suppliers, and prefer the ones offering
best prices and terms.
The Resellers will be our sales partners by promoting and selling our product to end users.
In return, they will earn profit for every soap that they are going to sell.
We will have a Performance Management System for the Employees and they will be
rewarded with annual bonuses based on performance.
5.13 Milestones
The accompanying table lists important milestones, with projected dates, management
and budget responsibility. The milestone schedule indicates our emphasis on planning for
implementation.
Milestone Start Date End Date Department
Business concept and planning 01-Jul-17 30-Nov-17 Executive
Secure funding for business operations 01-Nov-17 31-Mar-18 Executive
Consultation & formulation of prototype 01-Nov-17 31-Dec-17 R&D
Secure government permits 01-Jan-18 Executive
Purchase Raw Materials & Equipment 01-Jan-18 Purchasing
Factory Setup 01-Jan-18 15-Jan-18 Executive
Design flyers and ads 01-Feb-18 08-Feb-18 Marketing
Open social media accounts 01-Feb-18 08-Feb-18 Marketing
Manufacture the first 1,000 soaps 01-Feb-18 22-Feb-18 Production
Social media promotions 01-Feb-18 Marketing
Give away flyers and soap samples 01-Feb-18 Sales
Opening of the business 01-Feb-18 Executive
Marketing & Selling soaps 01-Feb-18 Mkgt / Sales
Training resellers 01-Feb-18 Sales
Page 20 of 41jul nov dec jan feb mar apr
Milestone
2017 2017 2017 2018 2018 2018 2018
Business concept and planning
Secure funding for business operations
Consultation & formulation of prototype
Secure government permits
Purchase raw materials & equipment
Factory setup
Design flyers and ads
Open social media accounts
Manufacture the first 1,000 soaps
Social media promotions
Give away flyers and soap samples
Opening of the business
Marketing & Selling soaps
Training resellers
6 MANAGEMENT SUMMARY
The company’s management philosophy will be based on customer satisfaction, integrity
and accountability. We will encourage everyone in the company to be efficient, honest and
respectful at all times, most especially the sales persons and customer service representatives.
6.1 Management Team
These are the team members who will run the business and be in charged in the daily
productions and operations of the business.
Name Education / Experience Skills Responsibility
Knowledge of the
product or service
Gladys C. BS Accountancy / Experienced in Accounting, and Manages the overall
Gonzalo Soap formulator different areas Selling skills operations of the
within the company business.
Reynaldo T. BS Marine Experienced in Keen on details, Manages the
Gonzalo Jr. Transportation Logistics, Packaging Good leadership production and
and Quality Control skills transportation of
products to different
areas.
Page 21 of 416.2 Personnel Plan
Initially, the owner will be in charged in the production of Multivit soap. As sales continue
to grow, the company will hire a production worker and he will be paid based on units produced
per month. The direct labor cost per bar of Multivit soap will be identified thru either by standard
production of equipment or thru time and motion study.
The production staff will need to possess the following knowledge and skills to be able to
perform effectively on the job.
Educational
Designation Experience Skills Responsibility
Background
no Basic Prepares the ingredients,
At least
Production Staff 1 experience knowledge in Makes the soaps, Cleans
HS graduate
required Math tools and Equipment
Packages the soaps,
no Basic
At least Labels the soaps,
Production Staff 2 experience knowledge in
HS graduate Arranges the soaps in the
required Math
box for delivery
In order to secure enough capital for the business operations, the management team will
not yet receive more than the minimum wage salary until the product is totally introduced in the
market. We understand that the 1st three years of the business are full of start-up expenses like
consultancy fees, government compliances and other unforeseen expenditures.
7 WASTE MANAGEMENT PLAN
Our hometown, Valenzuela City is very diligent in the collection of solid wastes. The
biodegradable wastes are temporarily collected, hauled and dumped in Lingunan, Valenzuela
controlled dumpsite. Then it will be transferred to a sanitary landfill in Rodriguez, Rizal. Some
biodegradable wastes find their ways to composing centers to be processed as fertilizer. The non-
biodegradable wastes are being generated by factories and industries within the city as recyclable
raw materials in manufacturing their products.
We believe that urbanization can be done without compromising the protection of our
environment and natural resources. The company will make sure to be responsible enough in
following the policies and procedures of the Solid Waste Management Plan implemented by the
local government.
Page 22 of 418 SOCIO-ECONOMIC IMPACT
EMPLOYMENT. Our company will create jobs starting from two employees and will
increase as the business successfully grows in the future. Our employees will have sufficient
salaries to support their families.
ADDITIONAL INCOME FOR RESELLERS. We will also offer our product to stay at home
parents where partners are OFWs, Seafarers or Local workers who opted to become full time
mom or dad to take good care of their children. We will highly encourage and train them to earn
also on their own by becoming resellers. Through this, they will earn their own money so they
could help their better half in other expenses.
CORPORATE SOCIAL RESPONSIBILITY PROGRAMS. The company will conceptualize
social awareness campaigns, livelihood programs, and community development in order to
motivate and inspire our fellow citizens to become confidently beautiful with an empathetic
heart.
UPLIFTING LIVES OF OUR SUPPLIERS. Our company selects suppliers that can provide
quality raw materials for our product. The suppliers we choose are those that promote goodwill
for the betterment of our country. Some of them are as follows:
✓ Greenearth Heritage Foundation Inc – It is a foundation that sells Malunggay Powder
(an ingredient in Multivit Soap), a by-product of Malunggay from the 100 hectares
Malunggay Plantation located in Brgy. Sibul, San Miguel, Bulacan. Some of their
missions are: 1) FARM-TO-TABLE APPROACH, wherein they assist the farmers in
their agricultural needs, then they search for direct consumer markets;
2) SCHOLARSHIP FOR FARMERS’ CHILDREN, wherein they help the farmers’ sons
and daughters in their education thru different literacy programs within the
community, and finding sponsors to support the education of these children to a
higher level. In fact, one farmer’s son named Romnick L. Blanco receives full
scholarship to study at Harvard University, with the help of this foundation. (See
Appendix for his inspiring story).
✓ Emmanuel’s Goat Farm – Mr. Emmanuel Balidoy is a full-time teacher with a small-
scale Goat Farm in Marilao, Bulacan. His family, especially his father who is also a
farmer helps in the daily operations of the farm. They were very happy when we
proposed to them that the excess milk of their goats can be an ingredient in our
soap because selling goat’s milk will increase the income of their family and can
enlarge their goat farm business as the need arises.
Page 23 of 41✓ Vendors and Suppliers of Tomato, Calamansi & Papaya – Being the ingredients in
Multivit Soap, these three products will generate more earnings to the
hardworking vendors in Polo, Valenzuela and Meycauayan Market. This will also
increase the source of income for farmers of these three ingredients.
✓ Logistics Companies and other Local Suppliers – the delivery of soaps all over the
country will help improve the business of logistics and transportation. It will also
add profit to chemical companies and soap making oil suppliers for other
ingredients.
IMPROVING THE STATUS OF OUR FAMILY – this is the most promising part in having a
business. Business fights poverty. When the right time comes, my husband will no longer need
to go abroad to work as a seafarer. He will be able to provide for our needs by managing our
business and at the same time being able to guide and take care of our children. We will also be
able to help our families and relatives. And lastly, this business will motivate us in extending help
to the needy and bringing inspiration to everyone that dreams can turn into reality.
9 FINANCIAL PLAN
We assume the business to begin growing at a minimum annual rate of 5% for the next
three years. We will also have a positive cash flow, allowing us the flexibility to cover any
unforeseen expenses.
9.1 Important Assumptions
❖ Initially, 100% of sales will be made on cash.
❖ Customers will pay for all relevant shipping charges.
❖ Projections related to customer acceptance were estimated using market surveys.
❖ The markup will be based on 100% of the total cost.
❖ Sales Quota will be approximately 40 soaps per day.
❖ Sales are assumed begin at the 4th month since the 3 months start up period is a series of
brand awareness and marketing programs.
❖ 92% of the finished goods will be sold out, of which 75% will come from Wholesalers and 25%
from End Users.
❖ Other assets and recurring expenses will not have significant change for the next three years.
❖ There will be no income tax rate for the next three years in accordance with Republic Act
9178, otherwise known as the “Barangay Micro Business Enterprises Act of 2002”.
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