Lumina PH

A Business Plan
In partial fulfillment of the requirements in
FRM 171 (Forestry Business Management)

Presented to:
Ms. Kharmina Evangelista

Presented by:
Advincula, Joshua
Corpuz, Cristelle
Gonzalvo, Francis Ian
Malapad, Rhea Lyn Miguel
Soriano, Pamela

University of the Philippines Los Ba​ños

Second Semester 2017 - 2018
Executive Summary
Our company, Lumina PH, aims to produce and manufacture unique and stylish
rattan lamps that provide aesthetic and relaxing ambience to the customers. It seek to
design and produce an environmental and social-friendly rattan lamps that will stand out
from the market of lighting and home décor manufacture.
Our company manufactures different collection of lamps in unique, stylish designs
that are made by local communities in Region 4A (CALABARZON) and with raw material
being obtained in the same location minimizing procurement efforts of the community. To
ensure competitiveness in the market, the lamps vary depending on the maker’s or
customer’s idea or desire. The lamp can be of different size, shapes and shade with intricate
designs in them.
Since the rattan furniture making industry is a growing business, the target markets
segments are NCR and Region 4-A. These are the regions that have high demands of
furnitures. Despite the number of business competitors involve in the production of lamps
ranges from small scale to even bigger companies, Lumina’s lamps doesn’t only provide
designs to brighten up one’s home or space but also gives opportunities to rural
communities to have a better quality of life. It’s unique, stylish, durable and with a
reasonable price. What more can a customer ask for?
According to survey, customers are willing to pay as low as 500 pesos for small
lamps up to 4500 thousand depending on the lamp’s size and designs. We guarantee that
are products is of best quality. Cheap but stylish and unique that one would mistake it for
an expensive one of a kind lamp.
Based on the size of our market and our defined market area, our sales projections
for the first year is 500,000. We project a growth rate of 10% per year for the first three
years. We also plan to aggressively build our client base through newspaper, website,
social media, and direct mail advertising. The products the company offers will surely
appeal to the customers’ taste because of its refreshing sight for the eyes to behold.
For the maintenance of the company’s integrity and branding, it will be managed by
identified key people: Operations manager, Quality control, safety, and environmental
manager, Accountant, bookkeeper, controller, Office manager, Receptionist, Foreperson,
supervisor, lead person, Marketing manager, Purchasing manager, and Shipping and
receiving person or manager. The kind of organizational structure to be used would be
determined and patterned with the kind of organizational structure that is already existing
in the company.
Lumina PH have come up with a number of marketing strategies that would only
require little to no cost in order to cut their expenses for profit maximization. In addition to
this, the company also has an aim to expand its market internationally.
General Company Description
Name of company: Lumina PH
Type of business: Manufacturing (Start-up business)
Address: Sta. Maria Laguna
Tel: (+63)912-123-4567
Email Address: luminaph@gmail.com

Vision statement:
Lumina PH aims to build a unique and minimalist yet stylish rattan lamps that
provide aesthetic and relaxing ambience to your environment.
Mission statement:
Lumina PH is committed to design and produce an environmental-friendly rattan
lamps that will stand out from the market of lighting and home décor manufacture.
Company goals:
1. Uplift the community’s economic stability
2. Increase overall customer satisfaction
3. To have an efficient working environment
Company objectives:

1. Ensure a solid financial sustainability in the first three years of business

2. Improve the skills of the employees through continuous training programs
3. Produce 1000 lamps in the first year of business

SWOT Analysis
Strengths
Sustainable source of unsplit rattan
Authenticity and uniqueness in design
Locally designed by the local communities
With minimalist designs that will never go out of style
Handcrafted materials are sourced from the Philippines
Support for indigenous groups or upland communities who plant and harvest rattan
Weaknesses
Lack of experience in furniture making

Difficulty in establishing reputation in the market

Equipment to be used for processing the rattan has high cost

Availability of workers

Opportunities
Availability of rattan lamps anytime of the year
Similar products on the market are expensive
Marketing advertisement through the use of social media
High demand for products made using natural materials
NTFPs are currently being sought after by many investors
Threats
Difficulty in rattan processing
Market competitors with similar products

Feasibility Study
Rattan is a material highly fitting for handicrafts because of its suitable mechanical
properties such as flexibility and durability. Lumina PH is a manufacturing enterprise
which helps the local communities in Region 4A (CALABARZON) to produce a product
(Rattan Lamps) from a sustainable source of rattan in their area.
The benefits of purchasing Lumina lamps by patronizing the local products of region
4a will boost the region’s economy, employment and way of living. The customers will
receive a benefit of unique, stylish and environmentally friendly rattan lamps for aesthetic
purposes. This means that our target markets such as restaurants, hotels, and resorts will
increase the overall customer satisfaction by using our product.
Social Value Proposition
“​Lumina lamps are unique and stylish lamps for a beautiful and brighter environment.”
Lumina lamps are environmental-friendly rattan lamps locally designed by the
community in Sta. Maria, Laguna. Lumina lamps are also customizable according to
customer’s preferences with fast shipping around the country. The aim is to maintain the
sustainability of the resources while being able to provide for the demands of the market.
In addition to this, Lumina PH promises to stay committed to the community where the
lamps are processed by providing them with knowledge from harvesting, processing and
selling to maintaining the business.
Market and Industry analysis
Market Analysis Summary
The remarkable Philippines furniture making industry is one of the most
labor-extensive and artistic industries here in our country. These industries provide
high-quality craftsmanship of Filipino workers that possess the traits of hardworking,
creativity and enterprising and essential important in manufacturing high quality NTFP
Furniture. Because of this, the Philippines is known as the “Milan of Asia”. The creativity
and industry of the Filipino is the cornerstone of the longstanding success of the Philippine
furniture industry. This gives agility and flexibility to produce furniture according to the
needs and tastes of buyers. While the industry is also capable of mass production, many
companies specialize in producing customer-specific furniture items, which have higher
value and durability. Specialization enables contract manufacturing, allowing the industry
to cater to the growing needs of families, hotels, restaurants, real estate developers, and
tourism-based enterprises. The secret behind the uniqueness of the Philippine furniture is
its raw materials, it is made using the finest sustainably-source raw materials such as
rattan, buri, bamboo and other indigenous products. Rattan Furniture business is one of
the most complex end products because of its binding, durability and strength properties.
One of the best thing in rattan furniture making industry is being exported outside the
country, these products generates lots of income to the Filipino people.
Industry Analysis
This analysis is based on the data presented by the Philippines Statistics
Authority(PSA), the global demand and trade for furniture making industry was escalated
to US$200 billion. In the Philippines alone, the country gained US$381 Million as a top
exported of rattan furniture during the year 2000. Rattan Furniture demand globally was
escalated because of the its unique Filipino native Craftsmanship and customer-specific
customization.
The rattan industry comprises establishments primarily engaged in providing high
quality furniture to patrons who order their furniture based on their customer’s specific
design and pay after the furniture is done. These establishments may provide other
services to patrons in combination with selling native, bags (bayong), hats(salakot) and
garments.
 Demographics, consumer tastes and preference and personal income drive demand.
The profitability of individual companies can vary: while large furniture making industry
rely on efficient operations and high-volume sales, Small rattan furniture making rely
on high-margin items and effective marketing. Large companies have advantages in
purchasing, finance, and marketing. Small companies can offer superior quality of furniture.
Thus, the industry is labor-intensive.
Computerized information systems can improve and furniture preparation and
designing operations. Online and social media ordering programs ensure easy
communication of customer orders. Timing systems monitor the work progress of the
furniture and can alert staff if an order is running behind schedule. Inventory management
systems track supply levels and can help reduce waste due to mismanagement. Cost
accounting programs help companies determine the profitability of individual furniture
items. Lastly, online banking would also help in payment methods and proper delivery
systems
Market Size
Ninety-five percent of furniture companies in the country are classified as SMEs and
the three major furniture production areas in the country are in Metro Manila, Pampanga
and Cebu. Metro Manila and nearby peripheral cities in CALABARZON (Cavite, Laguna,
Batangas, Rizal and Quezon) consist of small, medium and large furniture enterprises
which specializes in wood furniture and other mixed materials. Pampanga is associated
with hand-carved wood, wicker and iron products, whereas Cebu, used to be the heart of
rattan furniture making in the country, is now known for its fine wood furniture works.
Rattan lamps has an undeniably growing market in global perspective. In fact,
countries like Vietnam have developed models of rattan lamps that have appealed to
foreign customers. A community named Bao La have contributed to their economy by
producing household rattan items. They are known to have a sophisticated look with an
addition of their village’s traditional craft. Their reputation has then grown. If this is the
case for Vietnam, the global market for Philippines’ rattan products like Lumina Ph’s is
promising.
Industry Participant
Major participant includes, major rattan making companies in the country (Luzon
Rattan Industries, Sun Valley Rattan, Las Palmas Rattan) and Minor Contributing
companies (SME’s in Region 4-A).
Main Competitors
The following Furniture making companies within the National Capital Regions and
Region 4-A:
• Luzon Rattan Industries - This company provides classic looking and stylish rattan
furniture. This company created large sales by making an annual profit of 10 million. The
furniture that they produce is already commercialized and the price of their furniture is
ranges to 5000-100000 thousand pesos. The company also specialized in making customer
specific furniture. The company’s price range for Rattan lamps ranges to 1000- 3000 (
ready made) 2000-4000 ( for specification) and earned about 800 thousand-1.5 million in
rattan lamps alone.
• Sun Valley Rattan - this company gained international recognition in terms of
creating sustainable production of rattan furniture. The company also exports rattan
products worldwide and their products cost from 3000- 100,000. The company also
specialized in customer specific furniture.
The company’s price range for Rattan lamps ranges to 2500- 5000 ( ready made) and for
customize is depends on the transaction within the buyer. rattan lamps made a profit of
300,000- 800.000 alone.
• SMEs of Rattan Furniture in the Region 4A - Many Small and Medium Enterprises
creates jobs and opportunities here in our country, the individual establishments create an
annual profit of 250,000-300,000. This small-scale enterprises also specialized in making
customer-specific furniture. The price range of the lamps ranges from 500-3000
Market Segments
The rattan furniture industry will make appeal to the taste of the consumers both on
residential (Modern subdivision, Villages, houses) and Business residential establishments

(Hotels, motels, apartment). The location of the rattan furniture making shop located near
(Region 4-A) in the heart of the country(NCR), where there is a number of growing
households in the area.
 The rattan furniture shop is located somewhere in the region the region 4-A where
communities are entitled to collect and utilize rattan for their socio-economic purposes.
The Region 4-A and NCR have a family population of 3321 (in thousands) and 3019 (in
thousands) respectively and have an annual income of 312,000 and 402,00 thousand
respectively. The residential population in the target area is comprised of single and
multi-family housing and building. The median household income of both region is 357,000
pesos in year 2015.
Target Market Segments Strategy
The rattan furniture making shop is located between the national capital and
CALABARZON region, because of its potential buyers and consumers, whose population has
an interest in furniture because of different types of residential units. NCR is the heart of
the country, the demand for the furniture is big because of the numbers of condominium,
hotels and apartments. In the CALABARZON, demand for furniture is also high because of
large development of lands converting it to high quality subdivision (Sta Rosa Laguna:
Nuvali, South Forbes, West Grove Subdivision). Both of this Regions have a big demand of
furniture and has great number of households and have the greatest annual income in the
country. The advantages of these two regions is it has a southern Luzon expressway. A way
which connect both regions fast and efficiently.
Market Needs
There different kinds of selection of furniture in the Philippines. Whether the
furniture is made from metals, plastics or rattan. But here in the country, the demand for
rattan furniture is high because of its unique, creativity, design, and strength properties.
The markets need a product that is sustainable and artistic.
Market Trends
According to the Philippines Statistics Authority, the top seven trends for rattan
industry are:
1. Customer- specific furniture
2. Sustainable use of resources
3. Native Design
4. Locally gathered material resources
5. Created Locally by Filipino Craftsmanship
6. Tested for its durability and strengths
7. Cheap but have quality
Market Growth
The majority of the Furniture making industry in the Philippines compromises 98%
under SMEs and it provides 2.1 indirect workers nationwide and provides business to 5.4
million in its supply chain. According to PSA, Rattan has the highest export rate in the
country by gaining 85% in the total markets of Furniture.

Figure 1. Rattan furniture product sold at market in CALABARZON vs. other products dated
2010. ​Source: NSO ASPBI, 2010.

There are various sources of demand for furniture items in the Philippines. Coupled
with the consistent high growth of the country’s economy and Filipinos’ purchasing power,
the United Nations World Tourism Organization and Philippines’ Department of Tourism
report strong demand for tourism in the country. Since tourism-based enterprises – such as
hotels, restaurants, museums and leisure service providers – face growing needs to update
their amenities, the demand for unique furniture items is also increasing. At the same time,
the property sector’s strong growth and families’ easier access to housing credit also
increase demand for household items – most important of which is furniture.
Through the efforts of the Chamber of Furniture Industries in the Philippines (CFIP)
and the Cebu Furniture Industries Foundation (CFIF), the industry is projected to make a
global mark through the sustainable production of sophisticated, sturdy and
environmentally friendly products.
Positioning
Consumers believes that high quality and Filipino craftsmanship is secret behind the
success of Rattan Furnitures even if it is expensive. On our stand, we will position ourselves
to the sides of the customers because we believe in the folk saying that “customers are
always right”. In line with this, the government and private training facilities should
continue to enhance the natural talent of Filipinos for art and design. Skilled workers and
designers widely practice apprenticeship, thereby ensuring that the business and artistic
expertise of companies are well preserved and enhanced throughout the years. In addition
to this, we are to brand our product as minimalist that would never go out of style and that
are handcrafted by the farmers themselves.

Product Line (Description of the product/s)

Lumina lamps will be produced by the local communities in Sta. Maria, Laguna and
consequently, raw materials will be obtained from the same location in order to minimize
procurement efforts of the community. The design of the lamp is recommended to vary
depending on the ideas of the maker to preserve the genuineness of the makers' ideas and
represent the locale's community. It can also be customizable according to customer’s
preference in order to expand the advantage in competition. So, the lamp itself can be a
rectangular lamp or standard lamp. Its shade or cover can also vary in designs like circular,
triangular and square covers.

Since the lamps would be sourced from the local communities, the additional
materials needed to make them would also be coming from the traditional materials that
are already available in Sta. Maria. A lamp that would be produced by Lumina PH is
expected to last for years which is as good as a product made from sustainable natural
materials. The lamps to be produced are expected to be easily transported from Sta. Maria
to other parts of the Philippines and also outside of the country. The lamps would be
handled by the community in several processing units from its harvesting and processing
stages. The products are to be harvested by those farmers who will be taught of how they
can be harvested sustainably and processed as wickers in the most efficient way. The raw
products will be covered in finishing materials like varnish or depending on the design so
to make sure that it will not be susceptible to decay or termites and to bring a brighter look
to its design. In order to make sure that these products are checked for its quality, there
would be a team behind Lumina PH who will be taught of how the final products should be
packaged or expected before having them exported.

Organization and Management Plan

Business management:
The appropriate business ownership for this type of business is corporation.
However, the community in Sta. Maria, Laguna might prefer general partnership because
everyone would be liable for all the obligations of the business.
Professional staff - Instrumental in each company, new or existing, are the firm’s
professional staff resources. These include an accountant (CPA), a lawyer, a computer
consultant and, possibly, a local doctor or access to a medical facility. Although perhaps not
outlined as full-time staff positions in your organization, these roles should be considered a
part of the management team and discussed in the development of the business plan.
Organizational Structure

Since the production inside of Lumina PH is complicated and involves different

processes, the operational activities were divided into five sections. But first, the company
is to be headed by a President or CEO that is elected by the members of the company. The
president is to be helped by his Secretary that functions as told and is to manage all the
Vice Presidents of all the divisions/units. The divisions/units are to be headed by elected
Vice Presidents. Employees under each division are to be identified by the VPs according to
their skills or talents. The number of employees/staff under each division depends on how
many members are needed in order to make the division operational or effective.

Operational/Production Plan
Daily operations and productions

The rattan lamps will be produced five times a week during Mondays to Fridays.
The manager will decide the schedule of labor in a manner that will allow the ability to
increase or decrease hourly labor according to sales volume in order to maintain a
consistent labor cost control. In line with this, same with the time of selling, the company is
also in-charge of manufacturing of the rattan lamps

Establishing strict implementation of production quotas is required. In this way, the

company must ensure that the manufacturing process are meeting its deadline efficiently.
This will create good impact about the customer’s expectation about the deadline of their
ordered products.
 Establishing Quality Control and Assurance is required in the manufacturing
process. This two process is essential in maintaining the product’s quality, design and
proper craftsmanship. In addition, this can help the company in reducing the error in the
manufacturing process.

Proper management and rotation techniques are required. In this way the
community can come up with efficient way in maintaining the products state in favor with
the demands and expectations of the customer, especially during business hours.

Customer’s First Policy should be implemented upon arrival of the customer. The
manager should be the one to entertain the customer regarding to the choice of product.
The manager should explain following: the sustainability of the products,the craftsmanship
of the laborers and the uniqueness of the item. Once the customer order is satisfied to
his/her chosen product. The business should issue receipt to record the sales of the item.
The manager should thank the customer and choosing the item.

Plant Layout (30x60m)

Manufacturing methods

In making rattan furnitures or products, its processing plays a vital role. The
aesthetic look of the only one that a manufacturer needs to consider, but the sustainability
of the materials to ensure its long lasting life. Rattan processing is done at different levels
depending on the size of the manufacturing company. Its processing includes the following
stages: primary processing and secondary processing.
Generally, rattan furniture manufacturing involves processes as described in the flowchart
below:

Rattan selection

Rattan poles are selected according to grades and the quality of furniture they are

intended for. The criteria for rattan grading and classification are below Grade Criteria:

1/1 No black or brownish spots

1/3 Little spots

Natural

4/5 Many spots

A Uniform whitish color

Peeled

B Some discoloration

1 40 mm and above

2 35 – 39 mm

3 30 – 34 mm

4 25 – 29 mm

5 24 mm and below

Grade 1/1 refers to the highest quality rattan poles with smooth and clear skins.
These poles are normally used as main frame components such as backrests and legs.
Grade 1/3 poles are used for the shorter and hidden components such as bracers. The
outer skin layers of grade 4/5 poles are normally removed to produce even, off-white,
uniform, peeled rattan poles. The peeled rattan poles are then further sorted into grades A
and B. Grade A rattan poles with diameters of 30 to 34 mm (the most popular for furniture
making) are used in this proposed rattan furniture manufacturing factory model.

Straightening rattan poles

Rattan poles are normally bent out of shapes a little bit due to their inherent
properties and because they are stored vertically. The bent rattan poles are straightened
either manually or using pneumatic straightening machines. Straightened rattan poles ease
the processes of making higher quality rattan furniture.

Measuring and crosscutting

The straightened rattan poles are measured and cut to the desired lengths.
Measurements can be made using a 1:1 scaled plan. It is better to use pencil for marking
the length so it can be easily erased. Measuring and cross cutting could also be done
simultaneously using a radial arm-saw with adjustable stoppers Before bending into the
desired shapes, rattan poles are heated so that they become soft and pliable. Heating of
rattan poles is normally done in steaming chests for 20 to 30 minutes. Sometimes,
blowtorches are also used to pre-heat the rattan parts that need to be bent.

Drilling, grooving and end-coping

Many rattan furniture components, especially the seat and backrest, are drilled with a
series of holes for inserting slates (smaller rattan poles or cores) or grooved for inserting
rattan webbing.

Assembly

The furniture components are assembled together to form frame structures. Screws
and nails are commonly used to join the components. Assembly is done in two stages: a)
sub-assembly to form basic frame structures and b) final assembly to attach additional
components. A basic frame structure is made of components such as body and structure of
the lamp.

Binding and weaving

Various types of materials have been used in the industry for binding and weaving works.
The popular materials are rattan skins, splits and cores. Sometimes, leather and plastic
strips are also used. While leather bindings are normally chosen for the high-end rattan
furniture, this kind of bindings are gaining popularity, especially in rattan lamps used in
western pavement cafes.

Scraping and sanding

Scraping and sanding are used to smooth the surfaces of the components. The work is done
at various times during the workflow and can be done after cross cutting, after bending and
moulding, after assembly and during the finishing process. After bending, sanding is
required to polish the rough rattan surface due to the steaming process or to remove burn
marks caused by the blowtorch. Scraping is done using a hand scraper to remove excessive
putty

Finishing

Finishing is another important stage to ensure the final quality of furniture. Spray guns
powered by compressed air are used for spraying the furniture. The best finishing quality
can be achieved in enclosed spraying rooms equipped with spray booths.
Tools for the Rattan lamps

The quantity and price of the tools and machines required to set up the factory are the
following:

Cross cut saw

Straightening machine

Bending machine

Bench drill

Air compressor

Spray gun

Staple gun

2-D mould bench

3D mould bench

Pneumatic screw driver

Pneumatic nail driver

Spray booth

Steaming chest

Blowtorch

Suppliers

There will be no suppliers in the project. Since our company will utilize their own planted
rattan. Subject within their agreement with the DENR office.

Management Controls

The community must practice sound management procedures in order to control costs,
insure quality of product and provide friendly customer service. The following systems will
be used by management:
Order Guide: The community will use an item specific order guide to track order history
and maintain designated levels of product in inventory.

Weekly Inventory: Management will conduct a weekly inventory to determine valuation for
use in the preparation of weekly profit and loss reports.

Daily Inventory Tracking: Daily inventory will be taken on specific items. Movement will be
compared to sales data to ensure designated products have been properly accounted for.

Future Services

The rattan furniture making business plans to expand its products and services
nationally or even worldwide, expansion of this product would make a benchmark creating
furniture derived from sustainable resources.The community wants to create a products
that would satisfy the expectations of the international customers making the filipino
craftsmanship known to every corners of the world.

Management and Personnel

Production

● Skilled craftsmen/workforce - Will craft actual making of rattan lamps which

involves expertise that will be honed during their training prior to setting in the
production.
● Quality control​, safety, environmental manager - Generally will be responsible for
monitoring product quality, training of employees and filing all necessary monthly,
quarterly and yearly reports.
● Supervisor - This individual is the second-in-command in the shop and will oversee
production in the absence of the owner, general manager or president. This position
usually will have an overall understanding of all aspects of the business and also will
handle working with new employees, including setting up training and schedules.

Key People

● Operations manager​- This individual is the leader for the operation and has overall
responsibility for the financial success of the business. The operations manager
handles external relations with lenders, community leaders and vendors.
Frequently, this individual also is in charge of either production or marketing for the
business. This person will set in motion the vision, strategic plan and goals for the
business.
 ● Quality control, safety, and environmental manager​- This is a key function in
any industry and, in particular, one that deals in food products. In a small business,
one person generally will be responsible for handling OSHA compliance, EPA
compliance, monitoring air and water quality, product quality, training of employees
in each of these areas and filing all necessary monthly, quarterly and yearly reports.
● Accountant, bookkeeper, controller -This is another key function. The individual
filling this role has the responsibility for monthly income statements and balance
sheets, collection of receivables, payroll and managing the cash. The key aspect here
is managing the cash.
● Office manager - The person in this slot also may serve as human resource director,
purchasing agent and “traffic cop” with salespeople and vendors. This employee, in
general, will oversee everything not involved in production and may also handle
some marketing duties.
● Receptionist - Sometimes called the “front-line” person, the receptionist handles
phone calls, greets visitors, handles the mail, does the billing and performs many
other tasks as required by the office manager.
● Foreperson, supervisor, lead person - This individual is the second-in-command
in the shop and will oversee production in the absence of the owner, general
manager or president. This position usually will have an overall understanding of all
aspects of the business and also will handle working with new employees, including
setting up training and schedules.
● Marketing manager - If finances permit, a marketing manager may be on staff to
handle all aspects related to promoting and selling the product. The top
management person often handles this duty in a small business.
● Purchasing manager -Duties of this position may be filled by either or both the
general manager/top management person and the office manager. The supervisor
or lead person often also is involved.
● Shipping and receiving person or manager -This may not be a full-time position
in a start-up business. Someone, however, needs to be assigned the task of
packaging, ordering transportation for delivery, receiving incoming material and
warehousing of finished goods and stock. Several people may be involved in this,
including the office manager, foreperson or accounting clerk.

Marketing and Sales Plan (Strategy and implementation summary)

Target Market and Segmentation Variables

Lumina crafts its lamps for two main markets: direct retailing to usual buyers
looking to purchase an additional lamp shade to light up their homes and selling stylish
lighting décor for hotels and inns in wholesale.
 Geographically, taking into account that the core of the operations is situated at Sta.
Maria in Laguna, the everyday buyers will have to be residents and tourists found in or
around the city. This set of buyers will comprise of families wanting to redecorate their
homes or tourists looking to purchase products as a form of souvenir found only in the to.
Since lamps are typically set up as a permanent fixture in a residential home or transience
in hotels, we can expect that new families establishing their residential homes or hotel
managers looking for a new set of inventories to use for redecoration in their business will
be some of the most common customers.
Additionally, since ​Lumina showcases a collection of lamps in unique designs
produced using rattan, the market will have to include people with preference to use
nature-based (forest-based) decorations and individuals who lean more to design rather
than the simple functionality of the lamp as a lighting fixture.
Relationships and networks

Lumina will develop a mutually profitable business relationship with its supporting
stakeholders which comprises of customers, employees, and possible distributors. Each
item in the inventory will include a note of thanks from the company and will tell the story
of how the lamp was crafted and who designed it seeing that the items are never one and
the same. Also, in order to build and establish a loyal customer base, we want to create a
personal relationship with our customers. Through a personalized e-mail or text message
sent from the CEOs of the company to the buyers, we will form a rather intimate
relationship which will keep them coming back or at least spread the word with their
network of the company’s image. Below is a sample verbatim text of the e-mail or text
message:
Hello Ms. Kharmina,
I just wanted to take a second to thank you for your effort to help the local community
of Sta. Maria in Laguna, and your recent purchase to help scale our efforts. As you use
Lumina, you help a brother or a sister out and provide for their families by patronizing
their community’s product of hard work and dedication. Thank you for helping their
community and lighting up their futures.
Helping communities one at a time,
Pamela D. Soriano
CEO
Lumina PH
Supply Chain

Marketing Channels

For ​Lumina to maximize and reach out to the extent of the market, various
communication, distribution and selling channels will of course be a means to achieve this.
Mediums like newspapers, magazines, social media, fliers and the Internet will be used to
an extent. But the focal point among these channels will have to be social media and the
Internet.

Social media such as Instagram, Facebook and Twitter will serve as our major
platforms for communicating and spreading the word about the product. Meanwhile, online
shopping websites and marketplaces such as Lazada and Shopee can be our initial means of
direct selling and distributing the products to any interested buyers’ reach which will serve
as a selling channel at the same time. Provided with enough funds, establishing our own
website domain will elevate the branding image of ​Lumina. If the budget also allows,
advertisements will be paid to ensure that the international market and investors will also
be reached.

Competition
● Lumina VS OMNI
 The company sees OMNI, an electrical and lighting products company in the
Philippines, as a brand competitor. OMNI was created as a Filipino alternative to
foreign lighting brands, so that people could purchase quality products at a
reasonable price. That being said, although OMNI’s line of products greatly differs
from Lumina, its price is something to be competed with.

● Lumina VS all other lighting fixtures, all other rattan-made products

Like OMNI, there are more competitors in the lighting industry which
provide the same functionality of the product such as Akari, Eglo, Luxen, Cenit and
many others. Additionally, the rattan industry encompasses a wide range of varying
products from furniture to handicrafts derived from rattan stem poles. Take for
example Luzon Rattan Industries, a forty-year-old established company working
with the best Filipino craftsmen in shaping rattan and other non-timber materials to
create quality furniture pieces that are unique and comfortable. ​Lumina sees these
companies as industry competitors.

Marketing Mix
● Product
Lumina, showcases a collection of quality lighting fixtures of unique,
contemporary and classic designs crafted by the hardworking community of Sta.
Maria in Laguna to enhance private residential and commercial environments.
Moreover, testing of the product is always done and demonstrated in front of
the customer to ensure that the lamp is functional and does not have any form of
damages. Also, seeing that we cater to electronic goods, warranties will of course be
existent under the period of 5 months as per standard. On that note, this is
particular for customers who ordered online and will not be able to check
themselves whether the product is properly working with no damages before
shipment. This is where the refund and return system will have to be implemented
wherein returns and refunds can only be done once after the purchase of the
product. This applies to all customers whether they purchased it from the physical
store or the online shops.
● Price
We cannot emphasize more how ​Lumina presents a large array of varying
designs that are unique from one another. With that considered, definitely, each
piece will entail a different price depending on the simplicity or intricacy of the
crafted item. Prices will range from Php 350 up to Php 3000, again, depending on
the design.
 With regards to payment period or method, it varies depending on what
online marketplace the customer had used to order the goods. Typically, once
ordering, it is up to the buyer when to pay the amount needed and of course,
shipping fee applies at times. There’s also an option to pay after the delivery called
the Cash-on-Delivery (COD) which will also incur additional charges if the buyer
opts for this option. Still, depending on the platform, these time frames and prices
vary.
Lumina will also provide discounts from time to time depending on the
demand and trend of interested buyers. Furthermore, these online marketplaces, at
times, also provide discounts and promotions to registered buyers in their platform.
● Place/Distribution
As previously mentioned under the Marketing Channels, social media
platforms and online shopping websites will aid the communications, sale and
distribution of the products. As for the physical store location of the product,
mentioned under the Target Market and Segmentation Variables that the core of
operations and primary processing of rattan poles is situated at Sta. Maria in
Laguna. And so, for easy transport of raw materials, the main store location will
have to be in the proximity of the production area, too. If in any case that walk-in
customers request to have their items to be delivered (if bulky or heavy), delivery
assistance will be available provided, it is under the minimum required
measurements of height and weight as well as the fragility of the purchased product
that can be delivered.
● Promotion
In order to boost brand recognition, multiple elements such as advertising
and sales promotions will be established and conducted to elevate the company’s
brand. Public relations will also be focused on to create the hype and polish the
company brand name. Developing a sense of urgency, importance and need for
buying the ​Lumina lamps is the goal in order to create said hype.

Marketing Strategy

The goal is to raise their quality even when using cheap but high-grade materials to
increase their chances against their competitions that have already been running their
business for years and have garnered their reputation when it comes to interior designing
or furniture making. The following are the proposed strategies to make these goals
possible: online marketing, setting up of a storefront that would allow buyers to aid in the
designing of their product, and joining bazaars.
 Again, the idea is to develop the sense of providing interested buyers of having a
higher quality, unique product and create the feel of contributing to help the involved
community who worked hard to craft the products they have bought. ​Lumina will have a
greater chance in surviving this industry and maybe even make it on top when the brand
name, through quality, style, service, and sense of urgency, is properly established.

Competition Plan
The business on NTFPs like rattan or its wicker is fast-growing nowadays. Their
natural, but trendy look have allowed it to boom not only on local areas where they are
grown, but to foreign countries. In the Philippines, furniture and handicraft making is one
of the industries most assisted and supported by the government. Its exports have grown
in the past years and have allowed its competition to flourish. The Philippines have paved a
way for its furniture production to evolve and expand and have made it to be
acknowledged as a leader in producing well designed medium to high quality furniture
products. Philippines have been marked to be the one of the best producers of fine
furniture in the world ranging from traditional ones to casual contemporary and highly
experimental.
Furniture and handicraft firms in the Philippines, from small scale to large scale,
have already expanded their capabilities in order to include productions done in contracts
which have allowed them to become a preference as a source for hotels, restaurants,
offices, and other institutions. Since Lumina PH focuses on lamps, the competition is
reduced to a smaller population. Only a number of businesses focus on selling lamps and
most of them are designed using usual simple materials like plastic or wood. The
competition for Lumina would arise from the variation of its design and low selling price.
In order to stay competitive, Lumina PH plans to establish several channels on how
to stay connected to their market in order to establish a long lasting relationship. In
addition to this, it is indicated in Lumina’s plan that the products that are going to be sold
in the market will be having a touch of curator of the lamp by sharing a part of their life
depicted in a short narrative attached to each lamp and giving gratitude through a note for
helping their community.

Financial Plan
Since the brainchild of Lumina PH is the ExB group, the financial budgeting for this
company would be under the care of who will be spearheading it. Their start up is expected
to come from personal investment, love money, prospective investor, and local government
aid. As the company grows, banking institutions or credit cooperatives will also be asked
for loans.
Starting Capital​: 2,000,000
Source of Financing:
The source of financing will be from the personal investment of the owners, love
money from the owner’s friends and family that will be paid after the company has been
gaining income and is in a stable condition, Bank loans, business incubators that helps
small rising business to grow and prosper, Government Grant and subsidies that conducted
trainings and workshop as well as provide helping hands for the business to establish and
operate.
Attach here are the company’s Projected balance sheet, Income statement, Month by
month cash flow statement for a year and the company’s projected sales forecast for 3
years.
References

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Wan Tarmeze, W. A. 1994. Strength Properties of Joints in Rattan Furniture. Master of

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