In partial fulfillment of the requirements in

Business Plan Writing

Submitted by:
Jerlyn Mae C. Bugabuga
Frank Loyd B. Entereso
Naomi Rose C. Ramos

Submitted to:
Mr. Angelo Nueva, MBA

October 2019
 Executive Summary

Magic Events will offer the market with a concept of theme-based event at

home or in their office that will not only make the parties convenient for them but

also reduce their expenses on the same.

Magic Events makes its expertise and its services available to help its

customers plan their own events. It is located at Olivarez, Tagaytay City. The

business will be focusing on offering customers with arrangement of theme

parties in homes where the decorations of the parties would depend on

particular occasions. Party brochures will be prepared that can give the

customers better ideas about how the theme parties would look like offered by

the new business.

Through the different ideas and affordable services of the business, Magic

Events aims to be the number one resource for any event. The Event Planning

Specialists of the business will make a remarkable style in the event planning

market. Same quality results in every occasion will be provided constantly. The

idea is to make it cheaper and convenient for the customers to enjoy their

occasional parties.
Vision

• Be one of the top three event planning specialists in the Philippines.

• Be consistent in producing quality events.

Mission

• To offer customers with themed parties with a reasonable price.

• To target customers that prefer to celebrate different occasions primarily in

their homes or offices and arrange such events based on particular themes

in the main goal of satisfying them.

 Section I

MARKETING PLAN

1.1 Description of the Product

The offering of the new business is basically a service that will arrange for

theme based parties for its customers. The focus will be on offering customers

with arrangement of theme parties in homes or offices where the decorations of

the parties would depend on particular occasions (birthdays, marriage

anniversaries, retirement, engagement celebrations, and corporate events). For

example, for celebration of birthday of a girl the themes could include Barbie

theme, Dolls theme, or Pink theme. For birthday of a boy, the themes can

include Cartoon themes, Blue theme, Cars theme, and others. For celebration of

engagement parties, themes can be based on flowers, posters of couples, with

colors of red and white theme. For corporate events, themes like, Bollywood,

bohemian, Coachella and others. Party brochures will be prepared that can give

the customers better ideas about how the theme4parties would look like offered

by the new business. The idea is to make it cheaper and convenient for the

customers to enjoy their occasional parties. 4

1.2 Comparison of the Product with its Competitors

Magic Events' systems for event planning have been drawn up, evaluated,

practiced, worked, and reworked to ensure the maximum efficiency while

minimizing the possibility of error. We employ local vendors who have the same

desire to be the best at what they do, while providing unmatchable

services. Thus, we give back to the community by providing jobs outside of our

organization. We encourage new and upcoming small businesses that provide a

service within our need base to step up to the challenge of being the best

through their contract with Magic Events.

Our products will serve the function of aiding those that cannot afford the

cost of an event planner. We wish to make our event planning tips available to

those who need a helping hand. Magic Events is a member of the community.

Through event planning, Magic Events gets the opportunity to laugh when the

community laughs and cry when the community cries, to rejoice when the

community rejoices and to help put the pieces back together when things

change or begin to fall apart. We care about the things that have meaning in the

lives of our neighbors

1.3. Location

Magic Events is located at Olivarez, Tagaytay. We do renovations as long

as it is necessary in order to attract more customers. Having a good, clean, and

attractive place has a big impact to retain and attract customers.

1.4 Target Area

The target area of Magic Events is Tagaytay City and nearby cities, such as

Manila and Batangas. Tagaytay is a place where events are mostly done

because of its atmosphere, ambiance, and climate. It is also home for the

beautiful churches where people love to go and that is why there are many

events held in Tagaytay.

1.5 Main Customers

The target market for the new business is mainly those individuals and

families in Tagaytay City and its nearby cities that are interested in parties for

celebration of different occasions that are facing difficulties in the costs of

venues that event organizers arrange for. Tagaytay is a city with different

cultures and people with different lifestyles, having different tastes and

preferences. Being one of the most famous tourist destinations as well, the lists

of visitors over the year are varied, and parties and celebrations are parts of

their lives as well. It can be understood that the target market of the new

business is the interested people in parties and events, which can be expected

to create an attraction towards the new concept of theme parties at home. 6

1.6 Total Demand

Events and parties are on high demands in Tagaytay City. This is the reason

that several events management businesses are continuously focused on

meeting the demands of the customers. Events include different occasions such

as management of corporate events, business functions, corporate parties,

festivals, parties, conferences and business celebrations. In order to arrange for

these events or parties, individuals, families, offices, and groups are in need for

professionals that they prefer to pay for the services they would provide by

arranging for the events or parties.

1.7 Market Share

Company Monthly Sales Market Share (%)

A 110,000 27.85
B 120,000 30.38
C 70,000 17.72
Magic Events 95,000 24.05
395,000 100

1.8 Selling Price

Service Rates:

P5,000 - day event coordination services fee

P13,000 - turn over coordination (at least 4-6 months planning)

P15,000 - full coordination services fess ( 7-9 months)

P3,000 - P5000 - on the day coordination (wedding only)

P5,000 - on the day coordination Debut Party only (at least 3 months planning)

P5,000 - on the day coordination Kiddie Party only (at least 3 months planning)

1.9 Sales Forecast

By beginning on a smaller scale, Magic Events has the foresight to grow at a

rapid pace to keep up with demand. We wish to maintain a steady rate of sales

growth; however, we understand that sales of products and services will vary in

different months. As noted in the graph and chart, rapid increases during the

holiday season will boost sales, and then allow that growth to level off at a

steady rate.
1.10 Promotional Measures

Promotion of the business will be done through advertising measures,

based on the use of the media such as television, radio, or printed media. The

internet technology will also be made used through development of social

networking pages and website for the business. Campaigns can also be

targeted to target different areas of the market to let customers know about the

new company.

1.11 Marketing Strategy

The overall marketing strategy of the business involves understanding the

exact needs and expectations of the customers – in terms of their party needs,

theme based parties, and lower costs. Based on such understanding and market

analysis, including the existing competition, the marketing mix has been

developed defining the price, product, promotion, and place for the new

business. 8

1.12 Marketing Budget

Items Units Amount Total

Banners 10 450 4,500
Flyers 5000 2 10,000
Posters 60 150 9,000
Tarpaulins 50 300 15,000
Total 38,500

Amount 5% Increase Total Amount

2018 38,500 - 38,500
2019 38,500 1,925 40,425
2020 40,425 2,021.25 42,446.25
Total 121,371.25
 SECTION 2
PRODUCTION PLAN

2.1 Production Process

The production process starts in meeting up with the order of the client
and planning the design, menu, place, materials, and price. With all of the things
needed are agreed upon, the client should give the down payment for the
materials needed for the event should be bought and ready. Next step is the visit
to the location of the event and planning where things should be then on the day
of the event, preparations of the designs and the events. Lastly, after the event
the client should be able to give full payment for the service.

The business offers a service of arranging for theme parties at home. For
effective delivery of the services, the service delivery process can be considered
as effective. It involves a comprehensive set of tried and tested procedures that
focuses on maintaining the quality, integrity, availability, and agility of the
application, network infrastructure, and services. Designing of the network is the
initial stage focused by service delivery process. The processes will be
considered based on the particular needs of the business.

2.2 Fixed Capital

• Building - Php 300,000.00

• Computer - Php 20,000.00

• Camera - Php 36,000.00

2.3 Life of Fixed Capital

The useful life of the building and machinery will be Php 150,000.00

2.4 Maintenance and Repairs

Maintenance and repairs of the building will be at Php 50,000.00
2.5 Sources of Equipment
Ayala Serin Abenson & PCLE
2.6 Planned Capacity
N/A
2.7 Future Capacity
N/A
2.8 Terms and Condition of Purchase of Equipment
N/A

2.9 Factory Location and Layout

N/A

3.0 Raw Materials

For this business, the raw materials would include all those materials that
will be necessary for arranging for the theme parties at homes. Hence suppliers
will be required for providing those materials. Manufacturing might be required
for particular decoration materials that will be used for the parties. Distribution
would include carrying all necessary materials to the customer’s site for
arrangement of the parties. Hence these are the main factors that will be
involved in the supply chain of the business.

3.1 Cost of Raw Materials

N/A
3.2 Raw Materials Availability
N/A
3.3 Labour
Direct Labour – 10

Skills – Creativity

Indirect Labour - 5

Skills - Hosting Skills

Management Skills

Leadership Skills

3.4 Cost of Labour

Direct Labour – Php 11,000.00

Indirect Labour – Php 9,500.00

3.5 Labour Availability

The labour will be available throughout the year
3.6 Labour Productivity
The labour will be motivated by extrinsic motivation
3.7 Factory Overhead Expenses
N/A
3.8 Production Cost
40 per hour
 SECTION 4
FINANCIAL PLAN
4.1 Project Cost
Capital Expenditure Total
Cost
Equipment P130,000
Furniture & Fixtures P180,000
Pre-Operational Expense P70,000
Total Capital Expenditure P380,000
4.2 Financing Plan & Loan Requirement
-N/A
4.3 Security for Loan
-N/A
4.4 Profit & Loss Statement
Year 1 Year 2 Year 3
Sales P3,500,000 P3,710,000 P3,932,600
Cost of Goods Sold P300,000 P318,000 P337,080
Operating Income P3,200,000 P3,392,000 P3,595,520
Expenses
Building Expense P400,000 P400,000 P400,000
Insurance Cost P50,000 P53,000 P56,000
Professional Fees P1,500,000 P1,500,000 P1,500,000
Marketing Expenses P38,500 P36,190 P34,018.6
Payroll Taxes P40,000 P40,000 P40,000
Total Operating Cost P2,028,500 P2,029,190 P2,030,018.6
Net Profit P1,171,500 P1,362,810 P1,565,501.4
4.5 Cash Flow Statement
Year 1 Year 2 Year 3
Cash from Operations P3,200,000 P3,392,000 P3,595,520
Cash from Receivables - - -
Total Cash Inflow P3,200,000 P3,392,000 P3,595,520

Accounts Receivables - - -
Accounts Payables P150,000 P159,000 P168,540
Payment P200,000 P200,000 P200,000
Asset Purchases P250,000 P250,000 P250,000
Total Cash Outflow P600,000 P610,000 P620,000

4.6 Balance Sheet

Year 1 Year 2 Year 3
Assets
Cash P1,171,500 P1,362,810 P1,565,501.4
PP&E P130,000 P130,000 P130,000
Accumulated Depreciation P100,000 P100,000 P100,000
Total Assets P1,401,500 P1,592,810 P1,795,501.4
Liabilities
Accounts Payable P621,500 P630,000 P640,000
Long Term Liabilities P450,000 P550,810 P600,501.4
Other Liabilities P170,000 P190,000 P230,000
Equity
Share Capital P40,000 P72,000 P145,000
Retained Earnings P120,000 P150,000 P180,000
Total Liabilities and Equity P1,401,500 P1,592,810 P1,795,501.4

4.7 Loan Repayment Schedule

-N/A