ENTREPRENEURSHIP

Don Ted T. Cartagena

Renz Vincent Arevalo

Jeymark Torrecampo

Marjorie Pallarcuna

Arielle Bautista

Hazel Abonalla

Sheila Banayat

HSU, G12 – 42
 University of Makati
J.P. Rizal Ext., West Rembo, Makati City
HIGHER SCHOOL NG UMAK

Approval Sheet

This business plan entitled: "The EDITION” has been prepared and submitted by Don Ted T.
Cartagena, Renz Vincent Arevalo, Jeymark Torrecampo, Marjorie Pallarcuna, Hazel Abonalla,
Arielle Joy Bautista, and Sheila Banayat in partial fulfilment of the course requirement for the
HSU students is hereby accepted

PROF. SUSAN VILLARUZ

Entrepreneurship Adviser

PROF. FELICISIMA V. RAFAEL

Panelist

October 2016
 “The Edition”

KETBAG

University of Makati
West Rembo, Makati City
8888- 0007-987
Theedition@yahoo.com

 Is a business company of a jacket which privately held

 Founded on August 2016

 Comes from the idea projection of the owners in Limited Edition

“Our function is to provide satisfaction to the potential buyers. To introduce the new

innovated product that could benefit us.

 Business Plan
Table of Contents

I. Executive Summary

II. Introduction Background

a. Company Mission and Vision, Objective, Goals

b. Market and Production Budget

III. Situational Analysis

a. Internal

b. Customer

c. Industry

d. Competitor

e. Distribution and Supplies

IV. SWOT Analysis

V. Marketing Strategy

VI. Marketing Mix Elements

VII. Financial Indicators Budget

VIII. Attachment
 I. Executive Summary

Our product which we called Ketbag is a jacket and at the same time can be used for

other purposes such as being a bag. The company, “The Edition” will be positioned as a

franchise through our creative idea to the company's image and detail presentation. Ketbag will

provide a combination of excellent quality at value pricing. This will be the answer to an

increasing demand at this season to be consumed as for the style and outfit and even in the

school because it has a many pocket for keeping your stuff.

In today's highly competitive environment, it is becoming increasingly difficult to

differentiate to our competitor. In the Philippines are now becoming more dependants to the

technology and forgot the old ways of having and using traditional items.

As company's main priority is to establish shops, preferably in one of prominent

shopping malls in the country and later, our effort will be a further development of more retail

outlets in the surrounding area.

This study feasibility is prepared to obtain and provide information for the initial launch

of this concept. Giving funds from shareholders will allow Ketbag to successfully open and even

to expand. The initial capital investment will allow business to provide its customers with a

value-driven, entertaining experience through the creativity of its founders.

Our implementation plan will be carried out in two parts: prepare for manufacturing, and

marketing and selling the product. In preparation for manufacturing we plan to hire cheap labor

and train them to customize the ideal product of the company, and purchase wholesale materials

to cut down on costs. As we arise and grow, in marketing and selling the product we plan to hire

knowledgeable salespeople.
II. Background
Many business owners especially the entrepreneurs want to be more creativity especially

in the context of generating business ideas. From the target market customer ideas and

suggestion we come up to make something new and innovation in the natural jacket. Since most

of the people have a lot of things to keep or to bring; our product will provide such services on

that scenario.

The company start with identifying good product ideas and using reliable source to

decide which ideas to pursue. Jacket can be used mostly when the cold season from this we

decided product to become more usable whether hot or cold.

We came up with multiple ideas but as result of this process, at last all owners agreed in

the idea of making jacket into bag.

The idea we have to make a product (jacket) to become a more usable bag came from the

feedback, product observations and ideas from the team which will make our business successful

in the business environment.

Team Organization

The company, “the Edition” is currently the creative idea of seven founders. As the

company small in nature, it only requires a simple organizational structure. Implementation of

this organization form calls for all seven individuals to make all major managements decisions in

addition to monitoring all other business activities. As we expand into multiple locations, each

location will have a primary site manager and each founder.

Owner’s Background

The company was founded on August 2016, as a small enterprise, by Don Ted Cartagena,

Renz Vincent Arevalo, Jeymark Torrecampo, Marjorie Pallarcuna, Arielle Bautista, Hazel

Abonalla, Shiela Banayat and officially became The Edition, Inc. The company takes its name

from The Limited Edition, where there is a limit.

Mission

Our main goal is to be one of the most successful product outlets in Philippines, starting

with one outlet located inside a major shopping mall as a “market tester.” Our main focus will be

serving high quality product at a great value.

Vision

To keep our potential customers continue giving satisfaction with the product and the

benefits it given.

Objective

 To establish a presence as a successful local outlets and gain a market share in the

Philippine industry.

 To make our product a trending product especially for the youth.

 To expand our business through years

Goal

Ketbag is committed to creating positive social change in the market. We help us get

active, so they can have better and more successful lives. We bring inspiration to the

communities where we live. We engage our passionate and active employees to amplify our

impact. We work to provide satisfaction to the needs and wants of our potential customers.
Market

A much broader appeal exists for weekend slots because those are the days when most of

our core target enjoys the malls going activities. Having an outlet on Malls we will take this

advantage to promote our product.

Table 1. Shows the starting production of the company including the business acquired capital

for expenses.

 Cost and Production Budget

Product Unit Price Quantity Total

Jacket 200/piece 5 pieces 1000

Zipper 10/Yards 10 yards 100

Magic Tape 10/yard 5 yards 50

Buttons 3/piece 20 pieces 60

Labour 50/piece 5pcs. 250

EXPENSES P1460
III. Situational Analysis

Internal

The Edition Inc. is entering for their first operation. The company has been well received, and

marketing is now critical to its continued success and future profitability. The store offers a

great satisfaction to their customers. The KetBag is to offer individuals, youngsters and

families. The EDition uses market strategy based on what is been planned.

Customer

A much broader appeal exists for weekend slots because those are the days when most of

our core target market enjoys the mall going activities.

 Age - Youth currently enrolled in college and high school.

 Family unit.

 Couples – we will offer a discount for buying two items

 Gender

 Income - We will appeal to the medium income individuals and to all in the lower

medium income bracket.

Industry

Our Position in the Industry

Philippines is an area with a people who loves to have things which is unique and different to
others. Most of the Filipinos are fashionable.
People in this area can afford to spend money on them and are willing to do so.

Our market research has shown Filipinos prefer to have their money spend on needs rather than
their wants.

We produce the product for retail that includes advantage and disadvantages we have

over the competition.

Competitor

While there are currently big businesses in the country such as Nike and Underarmour offering

the same product, we have the advantage of low selling price over the others but has a

disadvantages of being known in the industry.

However, the competition in the country is not quite difficult but a pleasing and good sales talk
could increase our sales.

Distribution and Supplies

In this company, customers choose their suppliers based on available product, price, and service

- though most often. While offering the product at the right price, we provide the level of service

that the customer demands. This results with the customer purchasing most of their supplies

through a cash and carry style wholesale store - leaving the customer with no service or support.

By positioning ourselves in the market with in-demand, quality product at competitive prices,

with a consistent high level of customer service - we are confident that we will see customers

and their business continue to increase.

Problems

Ketbag facing major challenges to its business

1. The person who don’t like to use jacket.

2. Lot of beautiful things in the market.

3. The jacket can be used mostly cold season

Solution

As one of the manufacturer of jacket apparel, The Edition, inspire to adopt a winner

mindset which is covered in the “inspiration” component of the mission statement. Also

company’s mission statement emphasizes innovation. This components is applied through the

companies’ strategy to continuous improvement of product though new technologies so that

potential buyers will never stop trying our products.

IV. SWOT Analysis

Strengths

 Ketbag is a product that comes from a product. It was innovated y idea of the

founders. We use the concept of, where innovation to come up a new product.

 Ketbag uses a “make to cloth” customer order which provides a fast service to

customers from available stock.

 Selling products directly to the customers or COD

 Keeping costs below that of competitors

Weakness

 The income of the business is still heavily dependent upon its share of the market.

 The retail sector is very price sensitive.

 Shop is limited to the customer outside the main

 The items was only demand for a season

 The product is expensive for the others

 The marketing strategy to promote was not better as leading competitors

Opportunities

 In youth culture ketbag is a fashion brand.

 Desire of customers for one-stop shopping

 Internet as a marketing tool for promoting the product

 The season of ber months was a great opportunities for promoting the product

 The company has a low selling price compare to other competitors

 The company is opened for comments and suggestions for innovation of the product
Threats

 Ketbag is exposed to the nature of trade it buys and sells so costs margins are not stable

over a long period of time.

 The market for ketbag for selling is very competitive.

 Competitors are developing alternative brands to take away ketbag market share.

 Stronger brand name of competitors

V. Marketing Strategy

Ketbag intends to introduce to the product to teenagers and youngsters. We have chosen

this group for several important reasons. It is our goal and believes that the age group from 15 to

25 is the primary age where brand building efforts could take place. They are on limited or fixed

incomes and seek a value/price relationship that will not stretch their budgets.

Second, we want to keep the price point at the product as fair as possible to keep us in

competition with other fast clothing industry. At 800 SRP depends on the product, we are only

slightly above the segment, but we offer much more excitement than the rest of the competition.

Contingency Plan

Our initial employees will include cashier, two sale clerk. Each employee will work for

48 hours per week.

In the long run, as we expand our product category and retail outlets, we will hire more

people.

Short Term

Season’s changing trends from "ber months", colours availability of changes in the product.

Long Term

Open for Customer’s feedback and suggestions for future’s Product Innovation.

Plan B:

Higher Inventories, Lower Production.

VI. Marketing Mix Elements

Product

Ketbag is a jacket and at the same time can be used as a backpack that will be positioned

as a franchise through our creative idea to the company's image and detail presentation. Ketbag

will provide a combination of excellent quality at value pricing, with great services it can be

offer. This will be the answer to an increasing demand to be consumed while window shopping

and walking around inside a shopping mall and even in the school because it has a many pocket

for keeping student's stuff.

Our product is called “Ketbag” because we mix the name of jacket and bag. Then for you all to

understand why ketbag is our product. The company knew that the use of this is two classes

when it is raining you need a jacket then when you going some places you need a bagpack to

travel very comportable and all things that you need we must be put in a bag.

Price

We want to keep the price point at the product as fair as possible to keep us in

competition with other fast clothing industry. At 800 Php as suggested retail price(SRP) depends

on the product, we are only slightly above the segment, but we offer much more excitement than

the rest of the competition.

In order to catch up the attention of potential buyer we will have a discount of every

couple they will buy and addition of free customize bag tag.
Promotion

We will create our own web pages to get their suggestions or feedbacks about to our

product from the netizens for improvement. One of the methods employed is advertising. Other

promotional methods include sales promotions and point of sale display.

Place

Our main priority is to establish one shop in a mall, preferably in one of prominent

shopping malls in the country where there are lots of potential buyers. Later, our effort will be a

further development of more retail outlets in the surrounding area.

PROCEDURE:
The sewer put a zipper in every opening of the jacket so that it can can be close to
make it as a bag at the same time

The sewer puts a zipper in both side of pocket.

Put a button in the long sleeves of the jacket to make a connection for a handle

Put a magic tape in the sleeve so that it will not break when heavy materials are being
inserted in a jacket

This is the result of our product which is ketbag. The hoody jacket transform into a

bag.
VII. Financial Indications Budget

 Financial Statement

SRP = P350
AVE. Selling Per week = 10 Items
AVE.Selling Per Month= 40 Items
The Edition Philippines
Statement of Income
For the of August
(Sold 40 items)

Income or Revenue

Sales P14000

_______________________________________________

Total Income P14000

Less: Operating Expenses

Transportation Expenses 50
Materials Expenses :
Zipper 800
Magic Tape 400
Button 480
Jacket 8000
Labour 2000
_________________________________________________

Total Expense P11680

Net Income P2320

 The Edition Philippines
Statement of Income
For the month of September

(Sold 35 items)

Sales or Revenue P12, 250

TOTAL P12, 250

Less: Operating Expenses

Transportation Expenses 84

Materials Expenses :

Zipper 700

Magic Tape 400

Button 420

Jacket 7000

Labour 1750

_________________________________________________

Total Expense P10270

Net Income P1980

 The Edition Philippines
Statement of Income
For the month of October
(Offer 20% Discount)

(Sold 50 items)

Sales or Revenue P14,000

TOTAL P14, 000

Less: Operating Expenses

Transportation Expenses 84

Materials Expenses :

Zipper 600

Magic Tape 200

Button 400

Jacket 9000

Labour 2500

_________________________________________________

Total Expense P12784

Net Income P1216

 The Edition Philippines
Statement of Income
For the of November
(Sold 40 items)

Income or Revenue

Sales P14000

_______________________________________________

Total Income P14000

Less: Operating Expenses

Transportation Expenses 50
Materials Expenses :
Zipper 800
Magic Tape 400
Button 480
Jacket 8000
Labour 2000
_________________________________________________

Total Expense P11680

Net Income P2320

(Offer 20% Discount)

(selling Price is 400 Php.)

(Sold 50 items)

(reduce Supplies expense since not all been used in previous month)

The Edition Philippines

Statement of Income
For the month of December

Sales or Revenue P16,000

TOTAL P16, 000

Less: Operating Expenses

Transportation Expenses 84

Materials Expenses :

Zipper 600

Magic Tape 200

Button 400

Jacket 9000

Labour 2500

_________________________________________________

Total Expense P12784

Net Income P3216

 The Edition Philippines
Statement of Income
For the month of January

(Sold 35 items)

Sales or Revenue P12, 250

TOTAL P12, 250

Less: Operating Expenses

Transportation Expenses 84

Materials Expenses :

Zipper 700

Magic Tape 400

Button 420

Jacket 7000

Labour 1750

_________________________________________________

Total Expense P10270

Net Income P1980

The Edition Philippines
Table 2. Summary of Statement of Income

MONTH SALES EXPENSES Quantity INCOME

August 14,000 11,680 40 2,320

September 12,250 10,270 35 1,980

October 14,000 12,784 50 1216

November 14,000 11,680 40 2320

December 16,000 12,784 50 3216

January 12,250 10,270 35 1980

TOTAL P82,500 P69,468 250 items P13,032

 Comparison of Sales and Expenses from Income
18,000

16,000

14,000

12,000

10,000 Sales
Expenses

8,000 Quantity
INCOME
6,000

4,000

2,000

0
August September October November December January

AUGUST

On August, as the start of the business we sold 40 items with selling price of 350 Php.

The expenses exceed on 11, 680 Php for that 40 items . The company come up with the sales 14,

000 Php. After reducing the expenses the company had an Income of P2,320 for that month.

We focus here on local, small people -- those that have time to see new things unique to

the old one. The power of suggestion is very strong on Facebook -- especially with images that
ignite the senses & passions of people. The power of technology through social media and our

website, Is the great opportunity to increase the sales of our business wherein we put our product

and explained it well the benefits that a buyer could if they used this product, Ketbag. By adding

some advertisement that surely makes our potential buyer to try the product.

SEPTEMBER

We define our competitive advantage, the reason for buying the products, in terms of the

benefits, results or outcomes that our customer will enjoy from purchasing our product or service

that they would not fully enjoy from purchasing the product or service of our competitor.

So we focus on the benefits of what makes our product better than others. Since most of

the people had a facebook account, we used this app to update our potential buyers about the

changes in our product and innovation we made.

But on this month, the company reduce its sales due to hot weather. Ketbag is made mostly used

for cold season. The company only sold 35 items to have a sales of 12, 250 Php. So that

company had only expenses of 10, 270 Php. And but then the income reduces to P1, 980.

OCTOBER

We do a market research on our competitors to determine the right price that should

increase our sales. We come up that if you have a high-priced product, be prepared to over-

deliver quality to your customers. Price can be determined by “perceived value” of our product.

The company offered a 20 % discount by this month which our potential buyers enjoy buying

our product. 20% discount is not a big thing reduce or to make a loss on profit. The company

increases the quantity of items sold but the sales 14,000 Php. reduces 20 % due to the promo.
Also expenses increases to 12, 784 Php. As volume of sales increases but still there was an

income P1,216 which fell by this month.

NOVEMBER

By this month regular sales occurred in the business. Just like what happened on

the start of the business we sold 40 items with selling price of 350 Php. The cash used for

expenses was 11, 680 Php for that 40 items . The company come up with the sales 14, 000 Php.

After reducing the expenses the company had an Income of P2,320 for that month.

Although this month is not a good time for us but still we apply Learn Proper Negotiation

Techniques. We found out Skilled negotiators are usually quite concerned about finding a

solution or an arrangement that is satisfactory to both parties.

We look for what are called “win-win” situations, where both parties are happy with the results

of the negotiation.

We have focused on our quality to ask good questions to find out exactly what you need, being

patient and being very well prepared.

DECEMBER

This is the month of great opportunities for the company promoting the product, the

seasons of holiday. December was a season of cold, our product is on the great time. In selling it

is important to make a creative and compelling sales presentation to our customers. One of the

many ways is to create an effective presentation. We focus On Keeping our Customer for Life

“Once a customer, always a customer.”

 Once a customer has purchased on our product, this should not be the end of our

relationship with them. By Focusing on keeping a strong relationship with your customer. This

create more trust and add value to our product.

The company had an opportunity to increases the selling price to 400 Php. Because the

demand also increased. By this month the company increases the sales of 16,000 with expenses

of only 12, 784 php. Because not all supplies acquired has been used for the previous months.

The company had an increase in income for the month with P 3,216 for the 50 items sold.

JANUARY

People don’t buy products, they buy the results that product will give. By this month we

also start our process of identifying our ideal customer by making a list of all of the benefits that

your customer will enjoy by using your product or service. This time we focusing now on

marketing research and find a new product for our customers. Finding new people to buy our

product is an important part of the entire sales process on this month.

This is the month were the company needs to reduce the production of the items and think of

another innovation for the product. The company come up only with 35 items sold which

equivalent to P12,250 cash. The income after expenses been deducted was P1,980 same as on the

month September.