CHAPTER II

MARKETING PLAN

This chapter consists the marketing plans and strategies that the

entrepreneur have in mind. This chapter talks about the products and services

offered in the business, who are the target market, the analysis of demand

and supply, the projected sales, marketing programs, and the marketing or

the selling expenses.

II.1 Products and Services

The products that the shop offer are beauty products such as lip tint,

foundation, mascara and other beauty products. Aside from that, the store

also offers other products such as fragrances, hair care products and make-

up for additional items that will also attract the customer in our store to anyone

who needs it. Advertisements will be posted in social media and this will help

us, the marketers, to be more informed about the target audience, likes,

dislikes, and interests so that they we can create a better marketing strategy

to attract such customers.There will also be promotions to attract women’s

interest, such as discounts and pre-orders of any products they wish to

purchase. Other marketers who also offer beauty care services will also be

contacted so that the company can develop positive relationships with

potential consumers. It will also be done to put up internet adverts. The

financial component of the firm will be handled by this marketing and

advertising approach, and the investment will have enough time to pay off.
II.2 Target Market

The business establishment is located at Dahlia Street, Polomolok,

South Cotabato near in the market. Since the target market are towards

women who are interested in beauty products and those people who need to

change their self for a new beauty outlook , near the market would be a great

location for this business since it is easily to attract buyers who are just

passing by and those who are interested to buy. Customers can walk 4 by

foot to arrive at the establishment or they can also take transportation. The

location of the establishment is beneficial especially for both the business and

the customers. The business will not only cover the Market within the city but

also other parts of Mindanao of needed. The population of women within the

city and the number of places offering beauty care services are growing,

therefore they can also be the potential customers. To be specific, the

possible customers for this type of business will be women whether a student,

an employee, and old ages that live within the city, and people who are in

need of the beauty products and cosmetics.

II.3 Demand and Supply Analysis

The projected population of customers that the business is expecting is

around fifty thousand seven hundred nineteen (50,719) people. The average

sales that the business foresee every month is around two million pesos

(2,000,000 php). As mentioned above, the location is located near the market

of the city which all of the women can reach the market place. This makes the

location of the business advantageous as it is near where people are going to

buy necessities. The entrepreneur is expecting possible problems to arise in

the future. The concerns that are expected include issues with management

flow, customer service, enlargement, and certain issues with the setup and

machineries. Since these issues have been anticipated and projected,

potential solutions have been planned.

II.4 Projected Sales

The projected sales every month is approximately two million pesos

(2,000,000 php). The quota sales of the business per week is at least five

hundred thousand pesos (500,000 php) multiply by 4 weeks in a month

equates to two million pesos (2,000,000 php).

II.5 Marketing Program / Strategies

The main competitors as of the moment are the cosmetics industry

and beauty product suppliers and resellers that resides within the city. One of

the strategies that is observed is to let customers to pre-order in bulk or

through online where they can either pick up the order or have it delivered to

them. Aside from that, discounts are also given especially to the buyers when

they order from the business. This is considered to be one of the strategies to

attract customers. For wider customer range, advertising will also be done

through flyers throughout the city, giving brochures, posters, and online

campaigns.

II.6 Marketing / Selling Expenses

The probable marketing advertisements with corresponding prices are

the following:
Advertisement Prices Copies Expenses

Flyers 5 php per copy 1,000 copies 10,000

Brochures 10 php per copy 500 copies 5,000

Posters 500 php per copy 10 copies 5,000

Social media No cost N/A 0

Total: 20,000 php

Advertisements can be done once every three months making the total

expenses to 80,000 php quarterly.

 CHAPTER III

PRODUCTION OR OPERATIONS PLAN

This chapter tackles the different parts in making a Production or

Operational Plan. This chapter includes Technical Production Description,

Production or Operation Process, Labor Requirement, Production Schedule,

Machinery or Equipment Requirements, Materials and Supplies Requirement,

Plant or Facility Location, Utilities Requirement, Plant Layout, Waste Disposal

System, Quality Control System, and Production Cost.

III.1 Technical Production Description

Royal Crown’s Beauty product and cosmetics is a beauty products and

cosmetic product shop. It offers some beauty care products like lip tint,

foundation, mascara and others. It also offers hair care, skin care, nail care

and other beauty care. The shop also offers a promo once a month and an

exclusive promo once a year. There will be also a suki card for those who are

a loyal customer and with that card, they can earn points which they could use

for the exclusive promo

Below is an example of product description of a commonly known

beauty product.

 Lip tint is a beauty product applied to the lips to give them color,

often without much gloss or shine included. Generally, the tint is

applied to bare lips, and the color will slightly stain the skin; it is

also occasionally referred to as lip stain. It is intended to be

 worn by professionals, employee, student, and anyone who

wants to. This is commonly used as an enhancer to the lips to

give color.

 Lowest price with guaranteed safety and quality

III.2 Production or Operations Process

Once the customer looks and enter, the shop, the staff will greet them

with a big generous smile and will ask what are they looking for and/or what

they need. The Staff will show the direction of what the customer’s need and

the customer is free to roam around to look for other products and cosmetics

that they may buy. The shop is divided into three columns as they enter the

shop; the beauty products area; the cosmetics area; hair products and other.

Although these three sections are divided, the customers can pay in one

counter found within the store. For bulk orders, customers must fill-up an

order form. The products that they ordered will be followed after 2-3 working

days if the products are available in store or depending on the shipment of the

products. Customers have to wait in line in order to pay for their purchases.

The estimated time for each customer will be about 5-10 minutes. In the

process, the Electronic Cash Register will be use.

III. 3 Labor Requirement

The staff needed to manage the business is a total of six staffs.

 The business needs one supervisor, three saleslady/salesman, one

cashier, and one security guard. The owner will act as the supervisor for the

store.

The following that are listed below are the requirements for each

employee needed:

Saleslady/Salesman

Qualifications:

 Any gender is accepted and must have integrity

 Graduate of senior high school at least

 With good personality and communication skill

 Customer-oriented

 18 years and above

Requirements:

 Resume

 NBI clearance

 Diploma

 Certificate of Employment (from the Previous job)

 3 pieces 2x2 picture (recent picture)

 2 valid ID’s

 Drug test
Cashier

Qualifications:

 Any gender is accepted as long as possesses professionalism

and integrity

 Graduate of senior high school at least 10

 With good personality and communication skills

 18 years and above

 Drug test

Requirements:

 Resume

 NBI Clearance

 Diploma

 3 pieces 2x2 picture (recent picture)

 2 valid ID’s

Security Guard

Qualifications:

 Any gender is accepted and must have integrity

 Graduate of high school at least

  With good personality and communication skill

 Customer-oriented

 Drug test

 Excellent response skills and calm

Requirements:

 Resume

 NBI clearance

 Diploma 11

 Certificate of Employment (from the Previous job)

 3 pieces 2x2 picture (recent picture)

 2 valid ID’s

 Diploma of Security Guard training

III. 4 Production Schedule

SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY

1 2 3 4 5 6 7

Discount Inventory

promo of beauty

starts products

8 9 10 11 12 13 Ordering of

Inventory beauty

check for products

cosmetics and

cosmetics

15 16 17 18 19 20 21
 End of 2 General

weeks cleaning

discount

promo

22 23 24 25 26 27 28

Restocking General

of stocks cleaning

29 30 31

Monthly Checking

pay-out of beauty

products

and

cosmetics

delivery

III. 5 Machinery or Equipment Requirement

 Electronics Cash Register

 Computer set

 CCTV

 Flat Screen (advertisement of the product)

III.6 Materials and Supplies Requirement

 Baskets

 Record keeping

 Mirror

 Display rack

 Chairs

 Price Tagger
III.7 Plant or Factory Location

The Royal Crown’s Beauty product and cosmetics is located at Dahlia

Street, Polomolok, South Cotabato.

III.8 Utilities Requirement

 Electricity

 Internet Connectivity

 Water

 TV

 Phone Service

III.9 Plant Layout

DISPLAY RACKS
BEAUTY PRODUCTS

COSMETICS
III.10 Waste Disposal System

The waste disposal system was adapted from the Department of

Environment and Natural Resources; Environmental Management Bureau.

Collection - >Transportation - > Recycling/Landfills

III.11 Quality Control System

Quality Planning Quality Control Quality Quality

Assurance Improvement

Plan Do Check Act

Determine Monitor specific Determine if Increase

what will be the products earning measurement of the effectiveness

quality on the to determine if quality is and efficiency of

products and how they meet appropriate by the project when

quality will be performance evaluating overall corrective actions

measured measurement performance on a such as Change

thresholds regular basis to Requests

defined in the ensure the

quality project will satisfy

management customer quality

plan expectations

III.12 Production Cost

The business’ estimated total production cost per annum is 4,000,000

php.
 CHAPTER IV

ORGANIZATIONAL PLAN

This chapter includes all that is needed to form an Organizational Plan.

This chapter is consists of what Legal Form of Business is the business that

the entrepreneur wanted to have, Organizational Structure of the business,

what are the Qualifications of Officers, Office Equipment, and the

Administrative Expenses.

IV.1 Legal Form of Business

Royal Crown’s Beauty Product and Cosmetic is a Sole Proprietorship

type of business. The business is just being established therefore, minimal

paperwork and low set-up costs must be maintained to prevent debts. Further,

it's the simplest and least expensive business type when starting an

establishment. The prospect of having partnership in the future is being

considered.

IV.2 Organizational Structure

IV.3 Qualification of Officers

Business Supervisor

 Must be a graduate of any 2 or 4-year course

 Good communication skills

 Must be good in handling business

 Computer Literate

 Good leadership skills

 Have patience and resolve solutions in any situations

IV.4 Office Equipment

 Computer Set 

 CCTV Cameras

 Table & Chair 

 Make-up cabinet

 Make-up Kit

 Mirror

 Record book 

 Cash Register

IV.5 Administrative Expenses

The total administrative expenses is 58,460.00 php. Following the

average minimum wage for the employees of retail and sevice establishment

here in Region XII which is ₱305.00 a day for 8 hours multiply to 24 days in a

month is a total of 7,320.00php x 5 employees = 36,600.00 php. For the

Supervisor, the monthly wage is 18,100.00 php. The total of the wages

combined 36,600.00 php + 18,100.00 php = 54,700.00 php.

TOTAL WORKDAYS IN A MONTH

Number of days Number of weeks Total

6 4 24 days

TOTAL SALARY FOR AN EMPOLYEE

Minimum wage (8hrs/day) Days Total

305.00 php 24 7,320.00 php

TOTAL ADMINISTRATIVE EXPENSES

Monthly Wage Number of Employees Total

Employees 7, 320.00 php 5 36,600.00 php

Supervisor 18,100.00 php 1 18,100.00 php

Grand Total 54,700.00 php

CHAPTER V
 FINANCIAL PLAN

This chapter tackles about the financial aspect of the business plan.

This includes the Total Project Cost, Source of Financing, Projected Financial

Statements, Profitability Index, and List of Assumptions Used.

V.1 Total Project Cost

The total estimated project cost is P200,000 including the 6-month

advance rental payments, tools and equipment used, and the payment for

professional’s fee for the assembly of the interior design of the physical store.

Projected Costs Total

Advance rental payment P10,000 x 6 months P60,000

Store Equipment P30,000 P30,000

Salaries and Wages

A. Employees P7,320 x 5 P36,600

B. Supervisor P18,100 x 1 P18,100

TOTAL P144,700

V.2 Sources of Financing

The source for financing the building of the business will be from the

owner’s personal investment or as represented in the financial statements of

the company, owner’s equity.

V.3 Projected Financial Statement

V.3.1 Projected Income Statement

Royal Crown’s Beauty Product and Cosmetic

Projected Income Statement

May 2022

Sales P450,000

Less: Cost of Sales 225,000

Gross Profit P225,000

Less: Operating Expenses

Salaries and Wages 54,700

Electricity payable 2,500

Postage and communication 2,500

expenses

Advertising expenses 20,000

Supplies Expense 2,000

Net profit before taxes P152,300

Income Taxes 45,690

Net Income P197,900

The projected sales for the month is amounting to P450,000, computed

as projected daily sales of P15,000 x 30 days. The total sales amount is 50%

above cost, thus, the cost of sales is P450,000 x 50%. The total salaries and

wages can be attributed to 5 employees whose total salaries and wages

amount to P36,600, and salary of a supervisor P18,100. Overall, the total

operating expenses amount to P67,700. The net profit before taxes is

computed by deducting the total operating expenses P67,700 from the gross

profit P225,000. Hence, the total net profit before taxes amounts to P152,300.

The income taxes amount to P45,690 (152,300 x 30%). As a result, the total

net profit after taxes for the month of May 2022 is P197,900.

V.3.2 Pro Forma Balance Sheet

Hanijei’s Beauty Coutoure

Statement of Financial Position

For the month ended May 31, 2022

Assets

Current Assets

Cash P50,000

Inventories P560,000

Prepaid Rent P50,000

Total Current Assets P660,000

Non-current Assets

Office Equipment 200,000

Furniture and fixtures 30,000

Total Non-current assets P230,000

Total Assets P890,000

Liabilities and Owner’s Equity

Liabilities 0
Total Liabilities and owner’s equity P890,000

The financial statement above shows the proforma balance sheet for the

month ended May 2022. The total current assets of the business amounts to

P660,000. The total non current assets of the business amounts to P230,000.

Combining these two, the total assets of the company is P890,000. The

assets of the company is equity-financed coming from the resources of the

business owner amounting to P890,000 with no liabilities from any financing

institutions.

V.3.3 Cash Flow Projection

May June July

Beginning Cash P50,000 P150,000 P250,000

Balance

Cash Inflows

Goods Sold P450,000 P500,000 P550,000

Total Inflows P450,000 P500,000 P550,000

Cash Outflows

Product costs P225,000 P225,000 P225,000

Payroll P45,700 P45,700 P45,700

Utilities P5,000 P5,000 P5,000

 Supplies Expense 2,000 P2,200 P1,900

Total Outflows P277,700 P277,900 P277,600

Ending Cash Balance P172,300 P222,100 P272,400

V.4 Profitability Index

V.4.1 Return on Investment

The return of investment is calculated by using net income

divided by capital or equity multiplied by a hundred.

(P106,610 / P890,000) X 100 = 11.98%

Since this is a new startup business, the return on investment

shown above is normal for the first years of operation. Over time, the

business’ return on investment (ROI) is expected to grow.

V.4.2 Payback Period

The payback period can be calculated by using the capital

divided by its earnings.

(P890,000/P106,610) = 8.34 years

The length of the payback period is 8 years and 4 months of

operating.

V.4.3 Net Income: Sales Ration

The total net income that the entrepreneur can receive per

month is approximately P106,610. The net income per annum is

approximately P1,279,320.

V.5 List of Assumptions Used

 Financial

 Resources
 Schedules

 Customer

 Competition

 Technology

 Marketing

 Facilities & Infrastructure

 Procurement

 Compliance & Regulatory

 Legal

 Staffs
CHAPTER IV

SUPPORTING ATTACHMENTS (ANNEXES)

This chapter states the needed supporting attachment or annexes that

is included when opening a business. This chapter includes the Market

Research Data, Lease Contracts, Price List from Suppliers, and Commitment

Letters.

VI.1 Market Research Data

The location of the business establishment is an advantage as it will

be located near the center of the City of General Santos at Corner Claro M.

Recto Street, Pres. Sergio Osmeña Avenue, General Santos City. This is a

place where many students gather and is surrounded by many institutions,

universities, and colleges. Aside from that, there are also an influx of clinics

near the establishment. It has a great advantage because this is only a walk

away from many institutions or colleges that offers medicine courses and also

this is a place where people can immediately see what medical supplies the

store has to offer. This store will not only just cover the institutions within the

city but all student who are in need or people in need of medical supplies. The

population around the area is growing as the city continues to boost its

economy. Many institutions are located within the city area, therefore there

will be a growth in the potential customers that the business might have. To

specify the possible customers are medical students, clinics, and people who

need medical supplies. Tourists and students from another institutions outside

the city are also possible customers. There are total of 13 HEIs or Higher

Education Institution here in General Santos City. There are 5 schools that
offer healthcare related courses. These 27 schools mentioned are General

Santos City Medical School Foundation Incorporated or GSDMSFI, Notre

Dame Dadiangas University (NDDU), Brokenshire College, Gensan College

of Technology, and Golden State College. There approximately 900 students

from GSDMSFI, more than 2,000 students from NDDU, around 200-300

students from Brokenshire College, more than 500 students from Gensan

College of Technology, and around less than 500 students from Golden State

College. Since there will be an opening of the College of Medicine in

Mindanao State University, they can also be the potential customers for the

business.

VI. 2 Legal Documents

VI.2.1 DTI Permit

VI.2.2 Lease Contract

VI.2.3 BIR Permit

VI.3 Price List from Suppliers

So far, the supplier haven’t released their official price list yet as they

are adjusting due to the pandemic. VI.4 Commitment Letters, if any There is

no available commitment letters for now as it is a Sole Proprietorship