I.

Executive Summary

Market Our expandable bag organizer is now the newest twist to the normal bag organizer. A bag organizer that can conform to the sizes of any bag. Our market is like an open field still so available and not yet congested.

Poche (expandable bag organizer) is different from the other bag organizers in the market. It will revolutionize the bag organizer industry; it will surpass the limitations of the old bag organizer. High quality flexible full of new functions such as the ability to provide more pockets and other functional additives.

Business Description

At the front of the shop will be a wall display of the product with advertisement at the same time. Upon entering the store is another display cabinet containing products and a cashier will be positioned behind these display cabinets which encloses an area for the store personnel. There will be a close back-area intended for the storage of the product of the company. A comfort room will be provided for the employee as well as for the customers who will patronize the product.

Products Sariya Companys Poche (expandable bag organizer) will be

manufactured by the two (2) sewers hired by the company. It will be mainly consist of five (5) pockets with additional pockets. Each of them measures four (4) inches in width and five (5) inches in length. The bag organizer will have similar styles with various designs of fabric used. Product will be included with a pouch as a complementary for the bag organizer.

Management

Sariya is registered in the form of partnership. The partners namely Mr. Arnold Nebres who has three (3) years experience in Marketing and Sales. He served as Marketing Assistant of the Gotcha Foods Corporation for two (2) years and one (1) year as Sales Coordinator of Toy Kingdom Express of SM Lipa City, Ms. Diana Pagdagdagan, Ms. Cristina Elec, Ms. Mariane Peleo, Ms. Cherry Ann Porto, Ms. Raquel Esteria, Ms. Madelle Purificacion, Ms. Ave Gilainne Balazon, Ms. Kathleen Fatimah Pastor, Ms. Christine Joy Silanga, Mr. Martin Manoling, Mr. John Nathanael Afable and Mr. James Nicole Pimentel.

We have decided to have equal liabilities for the indebtedness of our business. Likewise, profits and losses will be shared equally and/ or according to an agreed percentage sharing.

Financing Needs

Sariya Company needs atleast P187,715.00 to finance all the startup cost of the business. The plan to cover up the expenses of the business is that each of the partners will invest P15,642.92 coming from their personal funds. The firm and its founders have decided not to make a loan from a bank because the investment needed is still a manageable.

II.

Business Mission and Strategy

Vision Statement

Sariya Company will be a leading manufacturer of world class bags and bag organizers in the Philippines by 2025 and in Southeast Asia by the year 2040.

Mission Statement

To heighten the awareness of every women to be organized with their stuffs. Thus, offering an expandable bag organizer would help them to have an organized bag inside and out. Sariya Company wants to improve the quality of life of women by making this expandable bag organizer as a necessity in their daily lives.

Philosophy Sariya provides high quality product that will ensure customers value for money.

Strategic Elements

Sariya Companys strategy embodies several elements:

The company will be the first business that will offer an expandable bag organizer in the market.

The company will be located in Tanauan City, a city located in Batangas Province which comprised of a large population.

The expandable bag organizer will be offered in various designs to fit the taste of every consumer.

The company would offer extra pockets to consumers who would want to add extra pockets for their bag organizer.

Strategic Objectives

To make on industry expansion through offering a companys own brand of bag by the sixth year of operation.

To expand additional location of the business after five years. To be able to secure back-up suppliers prior to operation.

III.

Sources and Uses of Funds

Start-Up Costs Summary

Start-up costs will be P187, 715.00 which includes acquisition of property and equipments, lease payments, salaries and wages of employees, initial working capital for 3 months, inventories, permits, and other expenses.

Sources and Uses of Funds SARIYA COMPANY Product : Poche (expandable bag organizer) PROJECT COST (SUMMARY) Acquisition of Property and Equipment / Others Furniture & Fixture Business Permit & Licenses Pre-operating Expenses Working Capital (approx. for months) Production Direct Materials Direct Labor Indirect Materials Repairs & Maintenance Selling & Administrative Expenses Salaries 13th Month Pay Communication/Telephone SSS, PhilHealth, Pag-ibig Marketing/Advertising Office Supplies Electricity/Power Water Rent Transportation Expenses Repairs & Maintenance Waste Disposal Internet Total Add: Contingency approximately 3

10,000.00 10,000.00 5,000.00

28,875.00 30,000.00 3,750.00 1,250.00 67,050.00 8,087.50 1,200.00 8,734.50 500.00 1,250.00 3,000.00 1,250.00 12,000.00 1,500.00 250.00 300.00 1,650.00 170,647.00

(10%)

17,068.00 -----------------

PROJECT COST (SUMMARY)

187,715.00
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SOURCE FINANCING Contributions Partners of

OF

the

Afable, John Nathanael Balazon, Ave Gilainne Elec, Cristina Esteria, Raquel Manoling, Martin Nebres, Arnold Pagdagdagan, Diana Pastor, Kathleen Fatimah Peleo, Mariane Pimentel, James Nicole Porto, Cherry Ann Purificacion, Madelle __________ TOTAL

15,642.92 15,642.92 15,642.92 15,642.92 15,642.92 15,642.92 15,642.92 15,642.92 15,642.92 15,642.92 15,642.92 15,642.92

187,715.00

IV.

Products

Sariya Company will sell the Poche (expandable bag organizer) primarily in Tanauan City, Batangas which is a fast-developing City of the province of Batangas.

Company Locations and Facilities

Sariya Company chose to reach the potential customers in Tanauan City, Batangas through leasing a commercial space. In this matter, the company will easily reach its target market because the location is within the center of the city itself with residential houses, business establishments, schools and universities.

Products Sariya Company innovates a bag organizer. Normally, a bag organizer differs in accordance to the size of the bag. Existing sizes are small (5 pockets), medium (6 pockets), and large (8 pockets). Our product Poche (expandable bag organizer) is capable of fitting into different bag sizes whether it is small, medium or large. Its like having 3 bag organizers all at the same time.

Poche (expandable bag organizer) have 5 pockets as the base and 3 detachable pockets as additional pockets to fit if the bag is bigger. The size of each pocket is 4 L x 5 H. It can hold pens, keys, small notebook, cellular phone, eye / sunglasses, hairbrush, perfume, etc. To avoid messiness inside the bag, we are including a small bag / pouch to hold items such as make-up / cosmetics which has 6 L x 7 H.

V.

Markets and Competition

Sales Trends Sariya Company after its first year of operation will increase its sales by 21.25%, this trend of increase in sales will continue. On the 5th year the companys sales will increase to 55.10%.

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Industry Analysis

In this fast paced world where things seem to be instant, where sped is becoming the name of the game it is important to find ways to keep things organized.

The industry for the bag organizer is not well known because there are few producers in the Philippines. Most of the producers are not known and are of small scale enterprises mainly marketing their products through the internet, yet there are also some large brands in the industry that market their organizers through malls and other retail outlets.

Like other industries where women are the chosen target market, the bag organizer industry is influenced by current trends and styles of what is fashionable and stylish. Style is really a factor for the target market of this industry but quality and functionality are of the same importance.

The market for this industry is broad, large and still growing larger yearly. The growing demand is not satisfied by the few producers, the absence of the producers motivate our firm producers. The absence of the producers motivates our firm to go and penetrate the already existing but still open market.

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SWOT ANALYSIS

STRENGHTS A new innovated product There is minimal number of sellers makes an open and uncongested market. Good quality Reasonable prices

WEAKNESS Poche is completely new products and our brand is unknown. Most of them customers avoid using trying new products. Different taste and preferences of people.

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OPPORTUNITIES To produce an expandable bag organizer in the market. Can offer job opportunities A source of information and knowledge. Possibility of good profits. To be known in the business world Expansion/ and extension of the product.

THREATS Imitation A small change in the focus of our competitor might wipe out any market position we achieve.

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Suppliers

The raw materials used for the product will be supplied by:

DOUBLE A CURTAIN STORE PasilioV 24-26 L 47-49 Yangco Market, Ilaya, Binondo, Manila 02 242-2820 or 0917-886-2880

FLOR TEXTILE STORE Yangco Market, Ilaya, Binondo, Manila 02 241-8367

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Market Analysis Summary

Tanauan City is a neighboring city of Sto.Tomas and Lipa. The city is the hub of a metropolitan area with students and working girls of 45,674 people ages 16-60 years old as of population census in the year 2010. There are many schools and universities in Tanauan. Many offices related to the city government and a booming business community.

Tanauan City has one of the highest percentage of college students and working girls and is generally regarded as one of the progressive city in Batangas.

Poche (expandable bag organizer) is an ideal business for Tanauan City given a market of this size and demographics.

The business has a potential to more than P1.5 million in gross sales by the 5th year of operation.

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Competitive Analysis

Most of the people in Batangas are not aware of a bag organizer, although it already exists in the market. The lack of awareness is due to the lack of sellers, people do not really have a mental picture of the product. The minimal number of sellers makes an open and uncongested market. This gives us the freedom and flexibility in pricing and allows us to launch activities to create awareness.

There are companies that are selling bags with numbers of pockets which is common nowadays in the market. Those kinds of bags are seen at cose, jellybeans, heartstrings in different department stores. On the other hand, some of them sell their products through the internet. The internet will enable us to reach a large number of customers that we would not be able to reach using a stall.

Though the internet enables us to reach more customers, it also entails additional cost for delivery.

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Competition and Buying Patterns

Since the consumers in Batangas are not familiar with bag organizers, certain efforts are needed to familiarize the people. Promotional activities have to be launched to introduce the product. On the other hand, customers today are more practical in terms of pricing, quality and styles. Buying a low price product which near out on a single use that is so sickening for the Filipino buyers who want to save money.

VI.

Marketing

Marketing Strategy

Sariya Company will promote the product Poche through the use of flyers that will be distributed to people and tarpaulins containing the actual picture and details about the product. Another plan is to join different activities for teen entrepreneurs especially in public places like malls.

The use of internet will be maximized by creating a website where we could provide the consumers with information about our product and persuade them to buy our product.

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Target Markets and Market Segments

Our target markets are women with the age of 16-60 years old specifically students and working girls that have the purchasing power. The potential customer represents a demographic group of people who are employed and have the capacity to buy. With regards to this, we as the producer may easily come up with new ideas to address the needs of our customers.

Pricing Strategy

Sariyas Poche (expandable bag organizer) will be offered at the price of P285.00. The company used the cost-plus pricing method as the basis of the products selling price. This pricing policy determines the cost of the goods to the company, adds a percentage to cover expenses and profit, and arrives at the selling price. It was also based on the P270.00 standard price in the market, but it does not mean that their product has the advantage on price. The companys price is more affordable for the consumers in the sense that the markets existing bag organizer has standard sizes for a certain bag sizes. Thus, acquiring the different sizes of bag organizer is way much more expensive. Sariyas Poche (expandable bag organizer) can fit different bag sizes because it is expandable. Its like having 3 bag organizers for the price of one.
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Promotion Strategy Sariya Company will promote its product through: Promotional flyers will be distributed to all customers. An additional item such as pouch will be included for every purchase of the Poche (expandable bag organizer). Demonstration through the use of E Communication programs. This will be done through the help of technology and also by promoting using of internet and by texting common friends to market the product. A store window display to call the attentions of the passersby. Participation through trade fares and exhibitions.

Offered Promos to Customers: Buy 3, get 9 freebies when a customer purchases three (3) bag organizers within nine months, automatically, the customer will get one (1) free coin purse. Bulk Buying Program the customer that will buy at least fifty (50) bag organizers will receive 1 free item in every ten (10) pieces bought, thus, a total of five bag organizers in every bulk purchase.

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Distribution Strategy Primary distribution of Poche (expandable bag organizer) is through leasing a commercial space as the store itself. Secondary distribution is through the use of a sales agent. Additional distribution will be through the use of internet.

Sales Projections

Sales forecast are based on projections made for the companys sales. There is very little threat from competition that may affect sales. Our sales are mainly from the direct selling, through the agent sales and sales derived from the internet

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Sales Forecast SARIYA COMPANY Product: Poche (expandable bag organizer)

SALES (In peso)

YEAR 2013 4,170 295.00

2011 Units sold in pieces Selling price per piece 2,850 285.00

2012 3,570 290.00

2014 4,770 300.00

2015 5,940 305.00

SALES (to income statement)

812,250.00

1,035,300.00

1,230,150.00

1,431,000.00

1,811,700.00

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VII.

Management

The success of the business depends on the management of the company. All people in the organization will dedicate their skills, abilities, talents and acquired knowledge. The growth of the business lies with the performances of the management team together with their subordinates. Job specification of each position should clearly identify to avoid the poor performances. It is necessary that each member of the management will be responsible with each duties and assigned tasks. The management team composes the following with their respective duties and responsibilities: General Manager is responsible for all areas. The general manager is responsible for effective planning, delegating, coordinating, staffing, organizing, and decision making to attain desirable profit making results. They are primarily responsible for guiding employees in achieving the goals and ambitions of the organization. They ensure that all processes and practices are working in a proper manner for an organization.

Production Manager is involved with the planning, coordination and control of manufacturing processes. A production manager ensures that goods and services are produced efficiently. They ensure the correct amount is produced at the right cost and at the right level of quality.

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Production Supervisor works under the direction of a manager to make sure all employees in a particular area of a factory are producing as much as they are expected. A production supervisor also sees that the conditions for work and production are optimal, both for the people involved and in what respects to waste and quality.

Purchaser is responsible for ordering inventory, supplies, equipment and services for all departments and divisions. The purchaser is responsible for securing the best price for all purchases without jeopardizing quality. The purchaser is responsible for generating and submitting purchase orders in accordance with the company policies and procedures. Quality Assurance Inspector works primarily involves sampling, measuring and verifying that manufactured products meet pre-determined quality standards.

Utility and Maintenance Personnel shall be responsible in maintaining wellness of the condition of the utilities, machineries or equipment being used in the production. He keeps the premises in proper order and use appropriate materials and equipment to complete assigned work at established procedures.

Production Operators is responsible to maintain the production process so work continues in a safe and productive manner. These duties may include staging materials for an assembly line, recording production statistics, monitoring equipment operation or assigning tasks to production staff.
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Sales and Marketing Manager is responsible in analyzing, planning and implementing marketing and sales activities. They also monitor how target markets respond to marketing efforts. Ultimately, their goal is to increase profit and retain loyal customers.

Marketing Personnel shall be responsible in creating advertising, good public relations and an intense dedication to informing the public about a product's best qualities. A marketing assistant's exact responsibilities vary by company, but the basic elements of the job are the same everywhere.

Sales Representative is responsible for selling products to the consumers, usually within a specified geographical location. They also have to be energetic, friendly and enthusiastic, and have a positive attitude.

Accountant handles a variety of issues dealing with money, finances, profits, expenditures, payrolls and sales. An accountant's duties can vary greatly depending on his client and his client's financials. An accountant's job can range from performing audits to ensure an individual or business is being truthful in its tax documents, to handling the payroll of a small business, to analyzing a business' ledger, or overall financial health.

Budget and Control is responsible for the handling and controlling inflows and outflows of cash by checking daily cash sales and even credit transactions. He also prepares records and releases payments for the salaries of the employees.

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Human Resource Development Manager shall be responsible for implementing strategies and policies relating to the management of individuals. They shall carry out a thorough job analysis to determine the level of skills/technical abilities, competencies, flexibility of the employee required etc.

Research and Development Officer communicates the strategic plan to subordinates in regard to business expansion, acquisition and marketing. He sets goals for attracting new business, and guides the development staff in the area of product research and development. The business development officer also formulates focus group research and testing to determine how a new product will be received.

Security Officers maintains security and safety of people and property in assigned work place area. He keeps records to incoming and outgoing employees and also visitors.

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VIII.

Financial Data

Financial Plan

Sariya Company will finance its growth through cash flow. Expansion will begin in fifth year that will include adding another location, an increase in corporate sales, and capital expansion through additional investment to support the introduction of our own brand of bags.

Seasonal Data

Sariya Companys Poche (expandable bag organizer) would be much viable in the months of June and July for the reason that our product is suited for students and professionals. December could be also a saleable month because our product could be a gift item suitable for the season.

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Break-Even Analysis

The tables and chart shows break-even analysis for the first year of operation. The producers require sales at approximately P625,919.00 for the first year alone. General and Administrative expense depreciation which amounts P443,088.00 and gross profit of 70.79%.

Break-Even Analysis

P443,088.00 70.79%

= P625,919.00

Projected Profit and Loss Profits for the next five (5) years are projected as follows:

2011 2012 2013 2014 2015

: : : : :

P 575,011.25 P 723,614.00 P 866,670.45 P 994,824.54 P 1,288,289.45

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