Republic of the Philippines

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

SANTA ROSA CAMPUS
City of Santa Rosa, Laguna

HIBISCUS SOAP
Herbal and Moisturizing Soap

SUBMITTED BY:
John Kenneth V. Capunitan
Andrea S. Dela Cruz
Mariel Danica M. Galasao
Rachelle M. Ramos
BSBA MM 3-1

SUBMITTED TO:
Prof. Gilfred A. Acierto

September 2014
MARKETING ASPECT

Introduction
When establishing a business, it is needed to have a careful analysis of the
market. The sales and income of the business would be dependent on the market.
Market then is defined as the set of actual and potential customers who need and
have the ability and willingness to buy a product.
Likewise, marketing is considered to be the aggregate function involved in
transferring, standardizing, financing, risk-bearing, and supplying market
information.
In this regard, this aspect of the study seeks to determine the following:
1. The description of the market.
2. The general marketing practices and proposed marketing programs focusing
on products, price, place and promotion.
3. The conduct and result of marketing research.
4. The demand and supply analysis.
5. The projected sales of the product and systems and forms design to be used.
Market Description
The proponents choose Santa Rosa City, specifically Brgy. Balibago, as its
initial target area. Since they are current students of Polytechnic University of the
Philippines Santa Rosa Campus, the proponents decided that the city where their
school is located would be an ideal place. Likewise, the City is highly industrialized
with the opportunity of having greater target market. Furthermore, it has been
revealed that City of Santa Rosa, Laguna is recently promoting Gumamela to be its
locality's flower. In this regard, the business' product containing Gumamela is
perhaps a phenomenal one.
The business will be situated at a rented space in Brgy. Balibago, Santa Rosa,
Laguna. The proponents would like to capture the population of the barangay
especially the households or families residing in it as their target customers.
However, since the business is still in its introductory stage and would like to cut
costs on building and operating its own selling store, Team Hibiscus Company (THC)
decided to just distribute their products specifically to individual establishments that
already sell soaps. These establishments will then be their actual target market
which includes 34 drugstores, 19 convenience stores, 7 supermarkets, and 5
skincare boutiques.
General Marketing Practices
Product
1. Product Name
HIBISCUS SOAP Herbal and Moisturizing soap

2. Reasons for Choosing the Product Name

The product's name was chosen to create certain curiousness and interest
among people about the product when it is heard. People all know what soap is but
perhaps few are aware on what "HIBISCUS" is. This term is derived from the family
name of the product's special ingredient which is Gumamela plant that has a
scientific name of Hibiscus rosa sinensis.
3. Properties of the Product
A competitive advantage of the product over those available in the market is
its health benefits. The Hibiscus Soap is a unique one that nourishes skin and help
in curing skin problems. The product contains Gumamela flowers and leaves
extract. This plant is known for its several medicinal characteristics which are:

emollient- something that softens or soothes; making soft or supple

especially to the skin.
anodyne- something that soothes, calms, or comforts.
refrigerant- allays or relieves heat or fever.
anti-infectious
anti-inflammatory
Moreover, Hibiscus flower also contains antioxidants and high level of Vitamin
C which protects body against diseases and gives skin a special glow. Finally, red
Hibiscus is also said to act as an anti-solar agent by absorbing ultraviolet radiation
for your skin. Other components of the soap which are the virgin coconut oil, lye,
and fragrance add cleansing and moisturizing factors to satisfy customers better.
4. Packaging

Hibiscus soap will be packed into boxes just like the typical soaps are. THC
preferred a biodegradable packaging to be eco-friendly. Likewise, they are also
aware of the City's prohibition on usage of plastics. However, to make it quite
unique, the sides of the box will have openings covered by acetate which is
transparent to serve as windows so that soap's appearance can be readily seen
even without yet opening the box. Meanwhile, its label will consist of the product's

logo, name, and tagline on top surface while other important information about the
product like ingredients, manufacturing date, manufacturer, and contact details will
be on the bottom surface. Amazing facts about gumamela will also be part of the
label.

Price

The Hibiscus Soap will be priced with competition in mind. THC is very much
aware that their product is neophyte in the market with numerous and giant
competitors. The firm is not concerned with setting high prices to signal prestige,
nor is it attempting to achieve goals immediately by offering low prices. Instead,
value pricing based on Cost-Plus Pricing is practiced so that customers would feel
comfortable purchasing.
Proponents feel that a mark-up of 25% over the total product cost is very
reasonable and competitive at this initial stage. Consequently, unit price is
estimated at Php25.00 which is relatively lower compared to other existing herbal
and moisturizing soap.

Place

As has been said, the business will be located at Brgy. Balibago, Santa Rosa
City, Laguna. The products will be distributed within the selected establishments
nearby the area. Over the next coming years, THC seeks to expand distribution to
nearby cities like Bian and San Pedro.

Promotion

Team Hibiscus Company plans to promote its product first by offering free
mini samples to target clients. Upon agreement, they plan to supply minimal
quantity for introductory. The use of tarpaulin posters and flyers to inform the public
of the existence of the product is also planned. Other general promotional measures
to market the product will be free delivery for volume purchases, regular and
prompt supply, and subsequent word of mouth advertisements.
Marketing research
Marketing research also called market research is a scientific discovery
method applied to marketing decision making. It generally comprises identification
of a specific market and its measurement and characteristics, identification of a
need or want and the characteristic of the good and service that will satisfy it and
identification of the preferences, motivations and buying behavior of the targeted
customer.
Part 1 (Respondents profile)
Name of establishment (optional)
Table 1

Year/s of existence
5-less
6-10
11-15
16-above
TOTAL

Year/s of existence
Frequency
11
18
24
12
65

Percentage (%)
16.92%
27.69%
36.92%
18.46%
100%

The table indicates that the year of existence of the establishments is mostly
11-15 years which got the highest percentage of 36.92%. Meanwhile, the lowest
percentage is from 5 and less years which is 16.92%

Type
Convenience stores
Drug stores
Skincare boutiques
Supermarkets
TOTAL

Table 2
Type of establishment
Frequency
19
34
5
7
65

Percentage (%)
29.23%
53.31%
7.69%
10.77%
100%

The table shows that most of the respondents are drugstores with a
frequency of 34 and percentage of 53.31%. It is then followed by the convenience
stores of the frequency of 19 and percentage of 29.23%. Next are the supermarkets
with a frequency of 7 and percentage of 10.77%. Last are the skincare boutiques of
a frequency of only 5 and percentage of 7.69%.

Do you sell soap?

Yes
No
TOTAL

Table 3
Selling of soap
Frequency
65
0
65

Percentage (%)
100%
0%
100%

The table indicates that all of the 65 stores sell soap with a percentage of
100%.

Your best seller?

Palmolive
Safeguard
Silka
Others
TOTAL

Table 4
Preferred brand of soap
Frequency
25
13
15
12
65

Percentage (%)
38.46%
20.50%
23.08%
18.46%
100%

Based on the table above, Palmolive with a frequency of 25 and percentage

of 38.46% is their most saleable soap. Meanwhile, the least saleable are the other
non popular brands with a frequency of 12 and percentage of 18.96%.

How much is the cost of

the soap? (Php)
20-less
21-30
31-40
41-above
TOTAL

Table 5
Cost of soap
Frequency

Percentage (%)

10
20
25
10
65

15.38%
30.77%
38.46%
15.38%
100%

The table shows that the soap with the price range of 31-40 got the highest
frequency of 25 and percentage of 38.46%, followed by 21-30 and the last are 20less and 41-above.
Table 6
Factors considered in selling soap
What are the things you
Frequency
considered in selling soap?
Quality
18
Quantity
12
Price
22
Brand
13
TOTAL
65

Percentage (%)
27.69%
18.46%
33.85%
20%
100%

The table indicates that price with the frequency of 22 and percentage of
33.85% is the first thing the establishments consider in buying soaps for resale.
Quality comes second with the frequency of 18 having the percentage of 27.69%.
The last factor that they consider is the quantity with the frequency of 12 having
the percentage of 18.46%.

How often do you buy

soap for resale?
Daily
Weekly
Monthly
TOTAL

Table 7
Frequency of purchase
Frequency

Percentage (%)

18
30
17
65

27.70%
46.15%
26.15%
100%

The results above indicate that the respondents usually buy products soaps
weekly which have the frequency of 30 equivalents to 46.15%. It is followed by daily
which have the frequency of 18 equivalents to 27.70%. Least is monthly which have
the frequency of 17 equivalents to 26.15%.

In what quantity do you

buy soaps? (Pieces)
50-less
51-100
101-150
151-above
TOTAL

Table 8
Preferred buying quantity
Frequency

Percentage (%)

15
20
18
12
65

23.08%
30.77%
27.69%
18.46%
100%

Based on the results above, the most preferred buying quantity is 51-100
pieces having the frequency of 20 and a percentage of 30.77%. On the other hand,
the least is 151-above
pieces having the frequency of 12 and percentage of
18.46%.

Do you prefer to sell

another brand of soap?
(Hibiscus soap)
Yes
No
TOTAL

Table 9
Willingness to sell
Frequency

Percentage (%)

65
0
65

100%
0%
100%

The table shows that all the respondents agree to sell new brand of soap
which implies that hibiscus soap is acceptable in the market.

Market Share

Although THC is creating a new variety of soap product, there are already
many kinds of soap existing in the market, some of which are manufactured by wellknown companies. According to the marketing research result, there were already
preferred brands of soap by target clients because these are their bestsellers. These
brands are the huge competitors of Hibiscus Soap. With this in mind, a market share
of 10% is expected by the company as being reasonable for the business' market
entry. In the succeeding years, however it is assumed that there will be 2% increase
in the said share that is 12% in 2015 up to 20% in 2019.

Demand and Supply Analysis

Analysis of the demand and supply is one major consideration for all
businesses in order to survive in the respective industry and maintain profitability.
The determination of demand is important especially for new businesses to
determine if it is feasible and profitable. The following are some importance of
determining the demand:

To
To
To
To

determine if there is enough demand for the business to sustain.

know if the product is acceptable to the market.
know how many people demand for the product.
identify the market share of the business.

Meanwhile, the determination of supply enables a firm to know if they can

still handle the demand of the market. The following are some instances why
determination if supply is important:
A major consideration in calculating the production expenses related in
manufacturing the product.
Guides in purchasing materials necessary for production.
Helps in determining if the production capacity can still handle the demand
for the product.

Demand

Demand has been defined as the aggregate quantity of a commodity that a

consumer has the will and ability to pay. Since the target market of THC is within
Santa Rosa, a City which promotes Gumamela as their locality's native flower, the
proponents expect to have a relatively high demand of their product. Likewise, soap
is indeed one of the basic hygiene needs of every human.
Year
2014
2015
2016
2017
2018
2019

Demand schedule
Establishments
65
65
65
65
65
65

Demand (grams)
1,560,000
1,872,000
2,184,000
2,496,000
2,808,000
3,120,000

Assumptions:
1. For the next five years, still 65 establishments will be the target market if
THC.

2. Market share of 10% is assumed on the first year which will then increase by
2% each succeeding year.
3. To compute the aggregate demand, the following formula will be used:
n x assumption x grams x 12 months
65 x 200 x 100g x 12 = 15,600,000 grams
15,600,000/100g = 156,000 pieces
Based on the National Statistics Office data, the total number of
establishments in Brgy. Balibago that is able to sell soap are 65 (n). To get the
demand for one year, multiply the total number of stores to the assumed quantity
of soap sold per store times 12 months.
4. To get the actual demand for Hibiscus Soap, multiply the market share each
year to the aggregate demand.

Supply

In the initial stages of production, operating at 100% capacity cannot be

assumed. There are expected initial operating problems, raw material shortages,
distribution difficulties, and others. Hence, the company cannot sustain fully the
actual demand of its product.
Supply schedule
Supply (grams)
1,152,000
1,372,000
1,646,400
1,975,700
2,370,800
2,845,000

Year
2014
2015
2016
2017
2018
2019

Supply (pieces)
11,520
13,720 (13,824)
16,464
19,757
23,708
28,450

Assumptions:
1. The company assumes a 20% increase in production capacity or supply every
year.
2. Multiply the percentage of increase to the number of boxes or pieces on the
current year to get the succeeding year supply.

Gap
Year
2014
2015
2016

Demand and Supply gap

Demand
Supply
1,560,000
1,152,000
1,872,000
1,372,000
2,184,000
1,646,400

Gap
408,000
500,000
537,600

2017
2018
2019

2,496,000
2,808,000
3,120,000

1,975,700
2,370,800
2,845,000

520,300
437,200
275,000

Sales
Sales are the total amount of goods or services sold by a firm. The projected
sales or sales forecast of the Hibiscus Soap is presented below.
Projected sales
Year
2014
2015
2016
2017
2018
2019

Amount (Php)
288,000
343,000
411,600
493,925
592,700
711,250

Proposed Marketing Program

Product

As a new concept on the market, Team Hibiscus Company offers a soap which
is for retaining healthy, clean, and moisturized skin and curing skin problems such
as cracks in feet, boils, and abscesses. These benefits will surely satisfy those
health conscious individuals of these days.

Price

Hibiscus Soap is considerably low priced at Php25.00 for a 100g pack. The
firm will also offer trade discounts and even credits to valuable customers who buy
in bulk.

Place

Since the business is in its beginning stage, the proponents decided to just
distribute their products to the 65 establishments within Brgy. Balibago who already
market soap to consumers. In this way, the business will only need to rent a room
as their production site, thereby cutting costs. Over the succeeding years, THC
seeks to increase distribution to nearby cities and might as well have the
opportunity to build their store.

Promotion

In order to promote their product in its first month, the business will create
and distribute flyers along commercial areas like in Balibago Complex and along
sidewalks. It will also provide tarpaulins on as much as possible each store to which
they will distribute their products.

To encourage their target market to sell the soap or as a token of appreciation

in partnering with them, the business will give free mini samples to owners or
managers of the respective stores. In a way, this will

also serve as their free trial on how good the quality of Hibiscus Soap is and make it
easy for them to recommend it to their customers.
Furthermore, the firm will offer a promo of "Buy5 Hibiscus Soap, Get a Bath
Towel" to its clients that may also be offered by the stores to their customers.
Meanwhile, the proponents will also create a Facebook page to promote the
business to online surfers and also as a means of accepting orders if ever. (On the
next months of operations, THC will then give Patronage Reward or incentive in
proportion to the volume regularly purchased; trade discounts; and even allowance
for credits after assessing the credibility in paying of their clients- may be omitted
because it should manifest in the financial aspect)
Systems and Forms Design

PRODUCTION ASPECT
Introduction
Back in the ancient times there are evidences that people already used soap
back then. The first concrete evidence we have of soap-like substance is dated
around 2800 B.C. The first soap makers were Babylonians, Mesopotamians,
Egyptians as well as the ancient Greeks and Romans.
An execution of ancient Babylon revealed evidences that Babylonians were
making soap around 2800 B.C. Babylonians were the first to master the art of soap
making. They made soap from fats boiled with ashes. Soap was used in cleaning
wool and cotton used in textile manufacture and was used medicinally for at least
5000 years. In Egypt 1550 B.C. the Ebens papyrus reveals that the ancient
Egyptians mixed animal and vegetable oils with alkaline salts to produce a soap-like
substance. While according to the Pliny the Elder, the Phoenicians used goats tallow
and wood ashes to create soap in 600 B.C. Others, like Romans made soap from
urine, cells, animal fats and plant ashes and they named the product saipo, from
which the word soap was derived.
Over so many years, soap managed to influence itself into our culture and
way of life. As becoming as one of our basic needs most primarily as means of
maintaining personal hygiene. Soaps lived through countless waves of
improvements that enabled it mature into its modern state. With the used of new
developed ways to make soap there are types of soaps produced to its different
uses. There are soaps use for bathing, cleaning, cosmetics, medicinal and others.
Those needs and wants made the soap making industry reach for those different
demands of the customer. So #TEAMHIBISCUS think of a product thats not just for

bathing and cleaning, but also for curing some skin problems and illnesses. With the
use of Hibiscus rosa sinensis or Gumamela extract, they can satisfy their customers
with those benefits.
Product

Description

Gumamela (Hibiscus rosa-sinensis Linn), the major component of Hibiscus

Soap, is cultivated as an ornamental flower throughout the Philippines. It is common
on Mt. Banahaw. Gumamela flowers are used as an expectorant in bronchitis, for
general coughs, and as a refrigerant drink in fevers. Aside from that, gumamela also
help to cure skin diseases such as abscesses, carbuncles and boils. It also a natural
emollient, used for softening or healing the skin and has a high percentage of
Vitamin C because of its powerful natural Botox type effect. Hibiscus contains a
firming agent, which not only has a calming effect on skin, but also smoothes out
wrinkles, giving a person healthy, youthful skin.
Bringing those benefits of gumamela, #TEAMHIBISCUS made a soap using an
extract from gumamela. It can facilitate the soap product not just for bathing and
cleaning but also for curing problems and illnesses on skin. In addition, the company
uses virgin coconut oil that appends the soap to become moisturizer, and the scent
oil or fragrance for the aroma. Lye solution is also used in the process, and red
coloring powder for the reddish color of soap.( why the soap is red, why to put lye)

Components
In making 100 grams hibiscus soap, the ingredients needed are the following:
Virgin coconut
oil
( 45 grams)

Lye or sodium
hydroxide
(25 grams)

Gumamela
extract
(30 grams)

Red coloring
powder
(pinch)

Scent oil or
fragrance

Distilled
water

Virgin coconut oil is known for

its nice fragrance, taste,
antioxidants, medium chain
fatty
acids
(MCFA),
and
vitamins, among other things.

The lye is mixed with water,

and then base oils, butters
and fragrances are added.
The gradual chemical reaction
between the lye and the fats
eventually produces a solid
soap
Gumamela extract helps to
cure skin diseases such as
abscesses, carbuncles and
boils. It also softens and heals
the skin.
Red coloring powder makes
the soap to become reddish in
color and helps the soap to
become more attractive on
eyes.
Scent oil or fragrance helps
the soap to have a good
aroma and smell.

Distilled water is pure liquid

that go through the process of
distillation. It is used to
dissolve
the
sodium
hydroxide.

Production process

Process

PRODUCTION AREA
LEGEND:
Operation

Storage
In making the hibiscus soap, the procedures are listed below:

1. Preparation of gumamela extract, virgin coconut oil, red coloring powder, scent
oil or fragrance, distilled water and sodium hydroxide.
In preparation of ingredients, the operator prepares and measures the
ingredients of hibiscus soap as well as the equipments on making the soap. Virgin
coconut oil will be heat by the use of stove and do not let the virgin coconut oil boil.
Distilled water will be pour into the sodium hydroxide to dissolve it and create the
lye solution.
2. Mixing of gumamela extract, virgin coconut oil, red coloring powder, scent oil or
fragrance, distilled water and lye solution or sodium hydroxide.
In this stage, the operator will mix all the ingredients through the use of
mixing machine. First, pour the virgin coconut oil on the container. Add a little
volume of lye solution frequently. Mix it for more or less half hour, until it becomes
thick. Next, put in the scent oil or fragrance and pinch of red coloring powder.
Continue to mix until the mixture becomes substantial.
3. Transferring the mixture into the molding cups or tray.
After the mixing procedure, the operator will transfer the mixture into the
molding tray. Store in a shelf for almost 24 hours and wait until it becomes firm. And
a tray can create 40 soaps.
Production capacity:
Pieces of soap
Number
grams

of

Day
40

Week
240

Month
960

4,000

24,000

96,000

Year
11520
pieces
1,152,000
grams

4. Cutting the soap

After 24 hours, the next step is to cut the soap. The operator will cut the soap
from the molding tray by soap cutter.
5. Packaging
The last step is packaging. In this stage, the operator will check first the soap
if it has any damage or crack before putting it into the box. The finished products
will place on the finish product storage.

Equipments/Tools/Machines needed
Office equipment
Description
Chair

Table

Computer

Printer

Telephone

Vault

Function
A chair is a piece of furniture
with a raised surface used to
sit on, commonly for use by
one person
A table is a form of furniture
with a flat horizontal upper
surface
used
to
support
objects
of
interest,
for
storage,
show,
and/or
manipulation
A computer is a general
purpose device that can be
programmed to carry out a set
of
arithmetic
or
logical
operations automatically.

A printer is a peripheral which

makes a persistent humanreadable representation of
graphics or text on paper or
similar physical media.
A telephone, or phone, is a
telecommunications
device
that permits two or more
users
to
conduct
a
conversation when they are
not in the same vicinity of
each other to be heard
directly.
A secure space where money,
valuables,
records
and
documents can be stored.

A clock is an instrument to
indicate,
keep,
and
coordinate time.

Clock

A low pressure mercury-vapor

gas-discharge lamp that uses
fluorescence
to
produce
visible light.
Light/fluorescent lamp
CCTV

A video surveillance use of

video cameras to transmit a
signal to a specific place, on a
limited set of monitors.

Office supplies
Description
Bond
paper

Ball pen

Function
A high quality durable writing
paper used for letterheads,
other stationery and as paper
for electronic printers.
A ballpoint pen is a writing
instrument which dispenses a
viscous ink from an internal
reservoir through the rolling
action of a metal ball at its
point.
Use to holds loose paper.

Folder

Scissors

A cutting instrument having

two blades whose cutting
edges slide past each other.

Puncher

Stapler

Glue

Envelope

A tool usually in the form of a

short rod of steel that is
variously shaped at one end
for different operations (as
forming,
perforating,
embossing, or cutting).
Use to joins sheets of paper or
similar material by driving a
thin metal staple through the
sheets and folding the ends.
A solution of glue used for
sticking things together.

A common packaging item

usually made of thin flat
material. It is designed to
contain a flat object, such as a
letter or card.

Binder clips

Use to binds sheets of paper

together.

Logbook

Official record book of with

periodic entries.

Machines and Equipment

A kitchen utensil which uses a
Mixer
gear-driven mechanism to
rotate a set of beaters in a
bowl containing the food to be
prepared. It automates the
repetitive tasks of stirring,
whisking or beating.

Soap molder

Use to mold the mixture in a

solid soap.

Use to cut soaps into pieces.

Soap cutter

Use to measure weight.

Weighing
scale

Serves as storage of soaps.

Shelf

Use to heat and cook.

Stove

Exhaust fan

Wall fan

Brings coolness and fresh air

into enclosed spaces.

It moves airthey do not

directly
change
its
temperature and it brings
coolness.

Fire extinguisher

An active fire protection

device used to extinguish or
control small fires, often in
emergency situations.

The office equipments, tools, office supplies and machines will be used by the
business to facilitate their day to day operation. Office equipment and office
supplies will be used by the proponents for keeping the records, printing of needed
document and other office works. Machines will be used during the production in
manufacturing the products and will be placed inside the production area.

Production Schedule

As a new established business, the proponents will be the transitory workers

and will do the operation of the business. They will work six days in a week,
Monday-Saturday with accumulating 8 hours of work from 8 am to 5 pm and an hour
for lunch break from 12 pm to 1 pm.
Project site

Site location

The business will be found at Barangay Balibago, City of Santa Rosa Laguna.

Site layout

Facilities

Building

At this initial stage, the business will not build its own building rather it will
just rent a minimal space at Barangay Baligabago, City of Santa Rosa Laguna
enough to be its production and working site.

Floor plan

Utilities

The business will use water provided by the service of Laguna water. The
water bills will be pay monthly by the proponents.
The proponents will use electricity provided by the service of Meralco. The
electric bills will be pay monthly by the proponents.
The business will use Liquefied Petroleum Gas (LPG) provided by the service
of Petron Gasul.
The proponents will used the business tricycle service for buying of raw
materials and distributing of soaps to different stores.

Materials handling

The proponents consider machines and equipment and its design to maintain
the quality of products. For that reason, a program of regular inspection will be
planned in the business to avoid costly equipment failures. The firms decided to get
keen on scheduled maintenance as their maintenance work to clean the
equipments, tools and machines of the business.

Waste disposal

Waste of the business will be collected everyday by the garbage collectors.

Therefore the proponents conclude that the production of business could be free
from waste, clean and safely disposed garbage thats comes from daily operations.

System and forms design

Standard operating procedures

Cleanliness and orderliness.

Always follow precise handling.
Always wear proper uniform.
Always ensure the quality of ingredients and the product.
Inventory of raw materials or supplies.

DOCUMENTATION