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Cozy

The older
are, the more
shoes will

W@LK
GROUP: V2MAS Innovators
Aldaba, Kyra Mari Dominique

ENTR1 B-1R

the clothes
artful the
be

Racho, Kathlen
Sandil, John Carlo
Viloria, April Lynn
Vista, Anna

TABLE OF CONTENTS
EXECUTIVE SUMMARY

BUSINESS PRODUCT

MARKETING ASPECT

PRODUCTION ASPECT

FINANCE ASPECT

APPENDIX

BUSINESS CONCEPT PAPER


EXECUTIVE SUMMARY
Cozy W@LK with the tag line, The older the clothes are, the more artful the shoes will
be., will offer a new trend in shoe fashion with unique and customized designs from excess
clothes and fibers from factories. The range of the choices will range from flats, shoes to shoes
and boots. Customers can choose from the ready-made shoes or can select their desired designs
from our available fibers or clothes or from the customers very own old clothes that they want to
become their new shoes. Our sales will include different sizes, colors, textures that will suit the
taste in the shoe trend. Our business will also provide delivery and bank payment for the
convenience of the customers.
The target market are the women belonging to the middle to upper class of the society.
The location will be the in a tiangge in St. Francis Square where in many people are present so
that the advertisement will be easier. The operation of the Cozy W@LK will be from Mondays to
Saturdays from 10 am to 9pm. Customers will be able to purchase directly from our website.
There will be extended special hours designated during Christmas holiday shopping season. The
Cozy W@LK will also offer sale and promos occasionally.
The competition will be minimized by targeting specific niches only especially the small
retail stores. The Cozy W@LK will offer variety of shoe design with high quality at a price from
as low as P350.00. The overall expense of the business is 2,884,472 with an annual sale of 2,
100,000. The ROI is 4.06%. The profit will be after 5 years but it can increase through thorough
advertisements and online selling.

BUSINESS PRODUCT
The older the clothes are, the more artful the shoes will be. This catchy statement says
all about the product. The product of this business will be the shoes made out of old clothes. This

idea will be fresh, new, creative and artful to the eyes of the people. It has a strong, ethical, and
environmental value. The shoes will be high quality yet very affordable.
The vision of these shoes is to sell products with environmental and social responsibility.
The impact of mass produced, low quality clothing and shoes on our environment and
communities is immense and we hope to encourage people to be more conscious of where their
products come from and the effect of their production. The customers will not just only help the
environment but can choose own design to their respective shoes. It will also benefit them since
it will be cheaper than brand new ones. Customers will sure like this trendy product.
The target customers of this product will be all the people who love to wear fashionable but
affordable shoes. Specifically here are the following lists of the potential customers.

The working people People who are looking for comfort and quality for the everyday in

the work.
The students - Teenagers who love classic and the word "limited edition."
The fashionable people People who love trendy, chic and whatever is in for the season.
The artists people who love to have a shoes that are fresh off the runway. Artists always
love to be the first person to ever wear a new and trendy pair of shoes.

The customers can come to the shop or order through online. They could come to the shop,
customize their own design, and the staff will help them to decorate it. They could also bring old
clothes that they want to use for their shoes. Customizing may take longer, thus it could be
delivered on the customers house. If the customers have no time to come in the shop, they may
contact us through online or landline and we will respond immediately. The price depends on the
designs. They may pay through online banks or in shop respectively.

MARKETING ASPECT
Specifically, the customers will appeal to female teenagers and young professionals from
a family earning 100,000 and up. With millions of youth in the Philippines, the size of the
market is about 1, 000, 000 per year. To sell the products for millions of potential customers,
the plan is to put a retail store/kiosk inside a mall where everyone can see itA and an online store
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for easy access to customers from different parts of the Philippines and possibly even young
foreigners.
The start for the business will be rocky road that will take a year or two. Over time, in the
span of 5 years, it is expected that the market will be doubled. In the beginning of the business to
be known to potential customers, advertisement is badly needed. It will be in the types of flyers,
posters, newspaper ads, and online advertisements. Sales are expected to work with this much of
advertisements.
Competitors are inevitable with this business. The usual competitors will be the shoes
brand names known all-over the world and other customize shoe shops found online and
elsewhere. For known competitors like Nike, Fila, Vans, and Adidas, their products are qualitymade from the best materials prepared specifically for them by the shoe materials manufacturing
companies of their choice. For other customize shoe shops, the quality may be inferior looking
compared to branded shoes but the designs and colors are unique and eye catching. Our shoes, of
course, will not be left behind by making designs comparable to branded shoes and other
customize shoe shops, and using different textured fabrics coming from old clothing and
recycled rubber soles. Recycling objects will be the advantage of the business since the trend
now is buying environment-friendly goods for the protection of Mother Nature. To sustain this
advantage, the shoes will as much as possible be made entirely from old clothes from the in-store
shoe displays to the ones purchased and ordered. The product line will be improved by surveying
customers for new designs and new ideas to be considered so even if there will be new entrants
the business will not get outdated.

PRODUCTION ASPECT
The innovation that will be employed in the business in the use of old clothes, which the
value of recycling is depicted, to create a new pair of shoes or footwear (e.g sandals). Also, the
use of recycled rubber soles is a form of innovation seen in the product. The raw materials
needed are: recycled rubber soles that could be bought in Quanzhou Kinking at a cost of
45,000 for 1000 pieces, 8 kg of thread of different colors amounting to 26,400, sewing
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machine needles, shoe laces and insole pads with a cost of 56,000 which could all be bought in
certain stores in Divisoria and 7 gallons of shoe glue worth 320 bought at Ace Hardware. The
location of the production site would be in a rooftop of a commercial/residential building at BF
Resort Village, Las Pias City that has a rental fee of 23,000 per month and a 2 months
deposit, 1 month advance. On the other hand, the market outlet would be situated in tiangge stall
in St. Francis square with a rent fee of 5, 000 a month. The total allotment of money for
business site is Php 74,000.
In order for a worker to qualify, the following skills should be met: sewing skills of
shoemaking techniques, basic knowledge in different sewing equipment and its methods,
knowledge on different fashions, knowledge on fabric types, colors and fabric care, knowledge
of the new trend in fashion, an understanding of the shoe construction, pattern making skills,
footwear design skills, and cutting skills. The workers profile should be at least 18-55 years of
age, either male or female, a high school graduate, has knowledge on sewing machinery and has
a job experience (sewing, tailoring or shoe making) of atleast a year or two. The required
compensation for workers performance are the overtime pay, 13 th month pay, maternal/paternal
leave, sick leave, day offs and the minimum wage, prescribed by DOLE of 466.00 but were
making it to 500.00 for easier giving salary.
The government requires the benefits to the workers like SSS (Social Security System),
PhilHealth (Philippine Health Insurance Corporation) and Pag-IBIG. The other benefits given by
similar businesses are mostly the same but with a prominent 13 th month pay depending in the
business terms to their workers. The labor standards that should be met is the appropriate attire
of worker, where they wear slacks and shirt/uniform given to them by the management. Together
with these slacks, a leather shoes should be worn by the worker.
The utilities and supplies used in the product would be water consumption supplied by
Maynilad with a projected cost of 6, 000 per month, electricity, roughly amounting to 12,600
by Meralco, waste disposal through the Municipal office garbage collectors and junkshops worth
approximately Php 1,000, communication through the telecommunication, PLDT, that cost Php
999 for a specific plan and the supplies bought form Divisoria, Ace Hardware and Quanzhou
Kinking is priced at Php 1,400,000
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FINANCIAL ASPECT
It is computed that the initial investment for the business will be 2,884,472. This
amount encompasses all necessary equipment, tools, and first set of raw materials, as well as,
estimates for the salary of the laborers, janitors, and security guards, and the consumption of
water and electricity plus phone bill.
The annual sales of the business will be around 2,100,000. For a month, it is estimated
to sell 500 units for 350/pair, a total amount of 125,000. Considering the initial amount of
recycled rubber soles is 1000 pieces, it can make 500 pairs of shoes. The price for a pair of shoes
is calculated by dividing the annual expense to the number of shoes possibly produce and sold
every month, in this case, 500 pairs in a month.
The annual expense, on the other hand, is 1, 982, 957. This makes the estimated income
for year one to be 117,043. The return of investment (ROI) is about 4.06%. Therefore, the
business will profit a little for a couple of years after the first operation. We think that the
business will profit more after 5 years. The initial investment is expected to be returned
hopefully not more than 25 years.

APPENDIX
RAW
MATERIALS
recycle rubber
soles
thread

UN PRICE
IT
100
0
8

PER UNIT
45 /pc

500

100 /pair

shoe lace

500

8 /pair

shoe glue

320 /gallon

shoe tacks

25

50 /pack

OTHER
MATERIALS
sewing machine
awl
hammer
x-acto knife
tape measure
shears
shoe brush
feet model

15

45,000.00

540,000.00

1,440.00

17,280.00

50,000.00

600,000.00

4,000.00

48,000.00

2,240.00

26,880.00

1,250.00

15,000.00

750.00

9,000.00

104,680.00

1,256,160.00

180 /kg

shoe insole pads

sewing machine
needles
TOTAL EXPENSE

COST/MONT COST/YEAR
H

50 /pack

UN PRICE
IT
5
16,000.00
10
550.00
10
100.00
5
550.00
5
10.00
10
220.00
5
90.00
500
50.00

PER UNIT

COST/MONT COST/YEAR
H

/pc
80,000.00
/pc
5,500.00
/pc
1,000.00
/pc
2,750.00
/pc
50.00
/pc
2,200.00
/pc
450.00
/pair
25,000.00

TOTAL EXPENSE
116,950.00
OTHER
EXPENSES
water

110

/cm3
61.14

electricity
telecommunication
laborers

110
0 11.46
1
999.00
15

6,725.40

80,704.80

12,606.00

151,272.00

999.00

11,988.00

kWh
/mon
/person