EXECUTIVE SUMMARY

I.

EXECUTIVE SUMMARY

Executive Summary
Dengue fever, a mosquito-borne disease, remains prevalent in the Philippines. Cases
of the dreaded illness hit a record high in 2011 despite the efforts of the Department of Health
and the private sector to curtail its occurrence through educational campaigns, free regular
fumigation and the elimination of possible mosquito breeding sites. Mosquito repellent its
sole reason for existence in the market is the omnipresent mosquito which makes the
excruciatingly difficult for the average Filipino during summer and monsoon months.
The various segments in this industry are coils, vaporizer, aerosols and creams. The
two new segments are personal sprays and gels. Coils command nearly 50 per cent of the
market share, vaporizer refills at 20 per cent, with mats at 10 percent followed by aerosols at
9 percent and therest shared by creams, heating devices and other products.
SC Johnson & Son Inc (Philippines) maintained its dominance of insecticides in 2010,
commanding an 83% retail value share. Its leading position can be attributed to the early
entry of Baygon, a name synonymous with insecticides in the Philippines, the availability of
various formats to cater for various income groups and its proven effectiveness in eradicating
both crawling and flying insects. The company also enjoyed the strongest growth in retail
value sales.
II. HISTORICAL BACKGROUND
Native Americans used root vegetables as either an ointment or fuel for fire to deter
insects. Apparently, the use of fringed ragwort was also highly commonplace and believed to be
so effective at repelling mosquitoes when burnt that wild horses would shelter in the smoke as
well. This led to the natives using it as a means to attract horses in. This practice of burning
fuels is carried on today and is common in all areas of the world where biting insects are a
problem. From burning coconuts and papaya leaves in the Solomon Islands to a mango wood
and ginger leaves in Papua New Guinea, it may be crude but it certainly makes a difference.
Pyrethrum oils another natural insect repellent with a history. Derived from the seed
coating of the pyrethrum daisies genus Chrysanthemum, found in both Persia and the dalmation
coast, it is thought that these plants proliferated along the caravan routes of the ancient world
into Asia. Popularized through its inclusion in incense sticks, pyrethrum is now used not only for
Hindu or Buddhist ceremony but also as day to day insect repellent. In its powder form,
pyrethrum was used by Napoleon and in World War 2 to protect from lice and fleas. The powder
is still the active ingredient in the 30 billion mosquito coils sold each year, which evolved from
incense sticks. The trouble is the coils are toxic and you cannot safely be in the same room as
them, which, although more expensive, makes incense sticks a better option.

Heredotus, who noted that in ancient Egypt, the oil of a particularly awful smelling
castor-oil plant was burnt in lamps, made the first recorded human use of an insect repellent.
This observation also included documenting the use of rudimentary bed nets too. In ancient
Rome, it was de rigueur to apply a vinegar concoction, especially on the head and feet to ward
away insects. It is thought this would have masked the kairomones of the Romans as well as
repelling the insects. Practices also included the burning of herbs such as oregano and black
cumin.
A. Type of Business
Company Name
The Healthy Herb Company produce a 100 % organic and friendly product that
promotes natural product made of herbal plants to use as an alternative for the chemical
products. To reduce the chemicals that may cause the environment more polluted. The
Healthy Herb Company was created by a 5 aspiring business students to make help the
environment and at the same time to make earn profit from it. It is a small business and aiming
to be bigger as the years goes by. The business firm product is developing a natural organic
product like Tomato Mosquito Repellent. Tomato Mosquito Repellent is a 100% natural organic
compose of extract of tomatoes, essential oils and scents. It is the best alternative to a
traditional mosquito repellent. The firms distinct from others are our capabilities to help the
environment to be more aware to use the herbal and natural ingredients.
Tomato mosquito repellent is made from 100% natural extract of tomatoes and some
essential oils such as grape seed and lavender oil. It is a spray based mosquito repellent in
size of 10ml bottle that would probably convenient and easy to use. Tomato based repellent
are thought to be as effective as a common DEET-based repellents. The tomato mosquito
repellent (with Tomato extract and Grape seed/ Lavender Oil as active ingredients) will
protect the body from mosquito bites and will prevent the damaging effects of UV radiation
from the sun such as wrinkles, sagging skin and age spots. It is an ideal personal care
product. The natural and organic home and personal care market continues to significantly
outpace the overall home and personal care industry as consumers shift preferences toward
products perceived as healthier as and better for the environment than many of the offerings
that have dominated the landscape for decades. We have directed our strategies toward
health, environment and sustainability by addressing consumer needs in a way that
demonstrates.
Social Responsibility
Healthy Herb Co. will have a social and environmental concern by putting 2 cans of
donation box in front of the cashier table to help our charity which is the St. Francis Childrens
Fund. We will help the housewife on how to make a Mosquito Repellent for training. In our 3 rd
year of the industry 10% of our sales will be given to our given community. Respecting human
rights, and being a good corporate citizen through charitable donations and participation in
community affairs.

Management Highlights
Healthy Herb Co. focuses on its management by securing that the company will have
the eligible employees to deliver a great service to the customer.
The company will also be responsible in providing proper guidelines, norm and rule
which will be followed by the employees. The management will provide motivation to their
employees so that each and every employee will work with love and passion in their work.
Marketing Highlights
In modern days people are more conscious in their health and wellness. Because of
these trends in the market, many people are trying to find convenient and effective products
that will suit to their needs. Mosquito repellent its sole reason for existence in the market is
the omnipresent mosquito which makes the excruciatingly difficult for the average Filipino
during summer and monsoon months. Our company creates a natural mosquito repellent
called tomato mosquito repellent to address the needs of our target market. Tomato mosquito
repellent market consist of Teen agers market, Mothers and professional market that needs a
protection from mosquitoes and it can be used as massage lotion at the same time. This
organic mosquito repellent are made of plant-based ingredients as opposed to synthetic
chemicals. Moreover, tomato mosquito repellent contains formula that are just effective,
modern and therapeutic as those made with synthetic and pharmaceutical ingredients.
Financial Highlight
Healthy Herb Co., have provided a partition of investment of money to each of the
member for the expenses of the company. It aims to set up parameters and assumption in the
computation of financial matters. Also, various accounts will be shown in the companys
bookkeeping. We will also show projections on the financial status or condition and performance
of the business over years.
Socio-Economic Contribution
Given the current situation of our economy where unemployment rate is 7% as of June
2012, we will tap into the non-employed force and encourage them to join the workforce by
giving them proper and intensive training to make them better qualified and equipped to do the
job.

II. MARKETING PLAN

A. Product/Service to Sell
i.
Benefits, Features, and Advantages
5

Table 1: FAB (Features, Benefits, and Advantages)

Benefits

Helps
Prevents
mosquito bites
Nourishes the skin
Handy.
It
can
easily
carry
anywhere,
anytime.
Tomato
mosquito
repellent is nontoxic it means it
will give you the
same protection
as
chemical
based repellent
without harmful
effects.
It can also be
used
for
children
and
babies.

Features

Effective protection
with
a
natural
tomato extract
Contains vitamin e.
Vitamin
e
has
antioxidant that help
the skin maintain its
youthful glow
Addition of some
essential oils such
as grape seed and
lavender oil
Tomato
mosquito
repellent is a nongreasy lotion

Advantages

It is cheaper than
the leading brand
New in the market
It is effective as a
common DEET
based repellent
without using a
chemical based
repellent.
It is also an
environmental
friendly product
non-toxic
and
non-combustible.

This table represents the features, advantages and benefits of Mr.

Quito. It shows that Mr. Quito tomato mosquito repellent has 100% natural
tomato extract that help prevent the skin in mosquito bites. It also contains
vitamin e that help the skin maintain its youthful glow.
B. Target Market
i.
Area Coverage
Our area coverage is within the Barangay Del Monte, Quezon City with the
total population of 11,792 as of May 1, 2007 according to National Statistics
Office. So this will be the number of population that we will be purchase our
product.
1. Market Description
6

In modern days people are more conscious in their health and wellness.
Because of these trends in the market, many people are trying to find convenient
and effective products that will suit to their needs. Mosquito repellent its sole
reason for existence in the market is the omnipresent mosquito which makes the
excruciatingly difficult for the average Filipino during summer and monsoon
months. Our company creates a natural mosquito repellent called tomato mosquito
repellent to address the needs of our target market. Tomato mosquito repellent
market consist of Teen agers market, Mothers and professional market that needs
a protection from mosquitoes and it can be used as massage lotion at the same
time. This organic mosquito repellent are made of plant-based ingredients as
opposed to synthetic chemicals. Moreover, tomato mosquito repellent contains
formulas that are just effective, modern and therapeutic as those made with
synthetic and pharmaceutical ingredients.
Porters Framework
Porters Five Forces provide an insight into the competitive situation in the
industry and thereby how attractive the market is to companies that wish to enter. The
model reveals on which parameters (forces) the companies compete against each
other and applied to identify in which areas Vita Plus is vulnerable to competition and
where potential sources of profitability can lower the strength of a competitors attack.

Figure 1: Posters Framework

7

NEW ENTRANTS

SUPPLIER
POWERS

Competitors

BUYER
POWERS

SUBSTITUTES

Porters Five Forces

Threat of New Entrants
MrQuito mosquito repellent is a new entrant in the retail industry. The more
difficult the barriers are to overcome by those like our product, MrQuito trying to enter
the market, the better they protect the companies already in the market from potential
new entrants. It will not be easy for MrQuito to enter the retail industry. MrQuito needs to
enter a high barrier because their product needs to be tested by the BFADs Philippines
and the level of competition is lower compared to other mosquito repellent.
Threat of Intense Segment Rivalry
The direct competitors of the MrQuito mosquito repellent are the Off! Lotion,
Guard insect repellent and the Greencross insect repellent. The said competitor also
contains the same ingredients that are unfamiliar in the market. MrQuito mosquito
8

repellent should use different advertising media and sales promotion in order to
increase their sales and to create awareness to their target market. At this stage
MrQuito mosquito repellent can compete in the market because of its unique
ingredients.
Threat of Buyers Bargaining Power
Supplier market share dominance, product differentiation, switching costs, buyer
concentration, negotiating or bargaining power, and buyer ease of switching and
product substitution.
In this case it is perceived to be more relevant to look at the power retailers have
because in the end they are the ones who choose which products actually reach the
consumers. The buyers of MrQuito mosquito repellent are the generation y, mothers
and workers.
There is an average buyers bargaining power because the product has not yet known
by the buyers. Competitors also affects the buyers bargaining power because they
dont allow new entrants to have a share in the buyers bargaining power.
Threat of Suppliers Bargaining Power
Supplier Concentration, Differentiation of inputs, Impact of inputs on cost or
differentiation, Importance of volume to suppliers, Switching cost of firms in the industry.
The suppliers of the MrQuito mosquito repellent are near its store location which is
Frisco Supermarket and Unit 2b la rychean bldg. 176 Tunasan ntnl road Muntinlupa
City 1773. These stores will give the product the needed materials for its production
processing.
The suppliers bargaining power of MrQuito mosquito repellent is high because its
suppliers are small supplier. They give incentives so that they sustain the services they
provide in the product.
Threat of Substitute Products
Switching Cost, Buyer inclination to substitutes, price performance trade off of
substitutes, new technologies, customers preferences and motivation, product
differentiation or product comparison are the factors that may affect the threat of
substitute products.
MrQuito mosquito repellent has a few direct threats of substitutes because there are
only limited companies that produce the same product industry. The indirect substitutes
for the product are the insect spray, mosquito nets, coil and vaporizer refills. The

absence/presence of the products in the market defines how the consumers see the
market.
If the competitors will notice that the MrQuito mosquito repellent is becoming successful
in the retail industry and they are producing new products every year and their sales
increases every year.
2. Target Market Profile
Table 2: Target Market Profile

Geographic

Demographics

Teen Agers

Psychographics

Out-going
Fashionable and
Active Individuals

Mothers

Working Class
Living in
Urban
Male and
Female

Behavioural
Optimistic and
positive thinkers

Medium Rate Users

Practical, Protective
and Caring

Practical,
Workaholic and
Conscious

Hard Core Loyal

Customers

Regular Buyers
Classes B and C
Potential Buyers
Our target market is consist of teen agers, mothers, and professional market.
Teen agers ages 15-20 years old lived at urban areas in Barangay Del Monte, Quezon
City that belongs to B and c class because they are more engage in outdoor activities.
And also teen agers belongs to the B and C class has an enough allowances in buying
product for their personal needs. Teen agers who wants convenient and fashionable
kind of mosquito repellent that they can bring anywhere especially in schools our
secondary target market. Mothers ages 25-40 years old live in urban areas of Barangay
Del Monte belong to the B-C class. A mother who wants an affordable mosquito
10

repellent for their children and at the same time massage lotion for their personal use.
Professionals ages 25-40 years old working in Barangay Del Monte belongs in B-C
class because they have enough income in buying their personal needs. Professionals
that needs convenient mosquito repellent for their protection against mosquito and
massage lotion for their body pains.
i.

Consumer/Customer

Teen agers ages 15-20 years old lived at urban areas in Barangay Del Monte,
Quezon City that belongs to B and C class because they are more engage in outdoor
activities. And also teen agers belongs to the B and C class has an enough allowances
in buying product for their personal needs. Teen agers who wants convenient and
fashionable kind of mosquito repellent that they can bring anywhere especially in
schools. Mothers ages 25-40 years old live in urban areas of Barangay Del Monte
belongs to the B-C class. Mothers who wants an affordable mosquito repellent for their
children and at the same time massage lotion for their personal use. Professionals
ages 25-40 years old working in Barangay Del Monte belongs in B-C class because
they have enough income in buying their personal needs. Professionals that needs
convenient mosquito repellent for their protection against mosquito and massage
lotion for their body pains.

1. Consumer Buying Behaviour

Figure 2: Consumer Buying Behavior

11

Products:
Should be made from
natural products
Product should have the
benefits and quality that
the consumer looking for a
mosquito repellent

Price:
Affordable
Price is associated with
quality

Promotion:
Place:
Accessibility and
Conveniency

Should use marketing tools

that will communicate the
product's features, benefits
and advantages
Should create awareness
among targeted consumers

Consumer buying behavior is influenced by the four (4) Ps of the marketing mix:
Mosquito Repellent is popular in the Philippines because we all know that every
year we have high cases of dengue especially when the rainy season is coming.
Purchasing of Mosquito Repellent may be classified as a need; because of mosquito
repellent it can protect your skin to mosquitoes.
Most of our target markets prefer buying a mosquito repellent because they want
to be protected from mosquitoes. Some potential consumers are price sensitive
12

especially in purchasing product. Mr. Quito has the benefits, features and advantages
that will protect your skin to mosquito and it is affordable than the other products.
The consumer purchasing behavior in terms of product businesses is still hard because
of the consumers preferences changes, the demand are also changes.

C. Demand and Supply Analysis

i.
Historical Demand (Five Years)
Table 3: Historical Demand
YEAR

PER DAY

PER WEEK

PER MONTH

PER YEAR

2007

50

350

1,400

16,800

2008

80

560

2,240

26,880

2009

100

700

2,800

33,600

2010

150

1,050

4,200

50,400

2011

200

1,400

5,600

67,200

Table 3 shows the historical demand of mosquito repellent in the previous years. The
demand increases as the year goes by. The demand increase by an average 4,940.

Figure 3: Historical Demand

13

Historical Demand
Per Day
Per Week

80,000

Per Month

60,000

Per Year

40,000

Per Year
Per Month
Per Week
Per Day

20,000
0
2007

2008

2009

2010

2011

The figure above shows the historical demand of mosquito repellent in the Philippines.
ii.

Projected Demand (Five Years)

Table 4: Projected Demand

YEAR

PER DAY

PER WEEK

PER MONTH

PER YEAR

2013

250

1,750

7,000

84,000

2014

300

2,100

8,400

100,800

2015

350

2,450

9,800

117,600

2016

400

2,800

11,200

134,400

2017

450

3,150

12,600

151,200

Table 4 shows the projected demand of mosquito repellent for fives years. It
shows that as there is an increase in demand as the years increases.

14

Figure 4: Projected Demand

Projected Demand
Per Day
Per Week

PDea
ryW
Pe
er e
PMek
or n
Yeth
ar

200,000
150,000
100,000

Per Year

Pe
r

50,000

Per Month

0
2013

2014

2015

2016

2017

The figure above shows the projected demand curve of mosquito repellent in the
Philippines.
iii.

YEAR

Historical Supply (Five Years)

Table 5: Historical Supply
PER DAY

PER WEEK

PER MONTH

PER YEAR

2007

40

280

1,120

13,440

2008

70

490

1,960

23,520

2009

90

630

2,520

30,240

2010

100

700

2,800

33,600

2011

150

1,050

4,200

50,400

Table shows the historical supply of one of our competitors. It shows that they
increase 38 of their supply per day, 266 per week, 1064 per month and 1,064 per year..
Figure 5: Historical Supply

15

Historical Supply
Per Day
Per Week

200,000

Per Month

150,000

Per Year
Per Month
Per Week
Per Day

100,000
50,000
0
2007

2008

2009

2010

Per Year

2011

The figure above shows the historical supply curve of mosquito repellent in the
Philippines.
iv.

Projected Supply (Five Years)

Table 6: Projected Supply

YEAR

PER DAY

PER WEEK

PER MONTH

PER YEAR

2013

226

1,582

6,328

75,936

2014

264

1,848

7,392

88,704

2015

302

2,114

8,456

101,472

2016

340

2,380

9,520

114,240

2017

378

2,646

10,584

127,008

Table shows that the historical supply of one of our competitor. Its shows they produces
226 per day, 1,582 per week, 6, 328 per month, 75,936 per year as time goes by.
Figure 6: Projected supply

16

Projected Supply
Per Day
120,000

Per Week

100,000

Per Month

80,000

Per Year

60,000

Per Year
Per Month
Per Week
Per Day

40,000
20,000
0
2013

2014

2015

2016

2017

The figure above shows the projected supply curve of mosquito repellent in the
Philippines.
v.

Demand Gap
Table 7: Demand Gap

YEAR

DEMAND

SUPPLY

UNSATISFIED GAP

2007

16,800

13,440

3,360

2008

26,880

23,520

3,360

2009

33,600

30,240

3,360

2010

50,400

33,600

16,800

2011

67,200

50,400

16,800

Table shows that there is unsatisfied gap in the demand of supply. There is
unsatisfied gap 3, 360 in the year of 2007, 2008, and 2009 increases as time goes by.

Figure 7: Demand Gap

17

Demand Gap
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0

Supply
Unsatisfed Gap

D
em
Sau
npd
Upl
nys
at
is
fe
d

G
ap

Demand

207

2008

2009

2010

2011

The figure above shows the demand gap of mosquito repellent in the Philippines.
vi.

Projected Demand Gap

Table 8: Projected Demand Gap

YEAR

DEMAND

SUPPLY

MARKET SHARE

2013

84,000

75,936

9.6%

2014

100,800

88,704

12%

2015

117,600

101,472

14%

2016

134,400

114,240

15%

2017

151,200

127,008

16%

This table shows the percentage of the unsatisfied demand . 9.6% in 2013,
increases 2.4% in the year of 2014, 2% in 2015, 1% in 2016 same as the year of 2017.
Figure 8: Projected Demand Gap

18

Projected Demand Gap

160,000
140,000
120,000
Demand

100,000

Supply

80,000
60,000
40,000
20,000

Supply
Demand

0
2013

2014

2015

2016

2017

The figure above shows the projected demand gap curve of mosquito repellent in the
Philippines.
D. Market Research
i.
Procedure in Conducting Market Research
We conduct market research to identify the specific feature, attributes, and
benefits that our target market value. We used descriptive quantitative research
design. We also used questionnaire because with this instrument we can easily know
their insights in using mosquito repellent without making our respondents pressured in
answering our questionnaire. The questionnaire is validated by both adviser and
professor. We held our survey at the Barangay Del Monte Quezon City.
ii.
Respondents Profile
Our respondents are Mothers and Working Class lived in Brgy. Del Monte
Quezon City. Our respondents which is Mother has an age of 25-50 and working class
has an age of 21-40 years old. We have also secondary target market which are the
students aging 16-22 years old. We will get the 0.42% of the total population of Brgy.
Del Monte Quezon City which is 11, 792.
Demographic Profile

19

Table 9: Frequency and Percentage Distribution of the data of respondents when

grouped according to age
AGE

FREQUENCY

PERCENTAGE

15-20

12%

21-25

12

24%

26-30

15

30%

31-35

11

22%

36-40

4%

41-45

4%

46-50

4%

TOTAL:

50

100%

Presented in table 9 are the frequency and percentage distribution of the

data of respondents when grouped according to Age. Table 1 shows that 6 (12%) of
the total respondents has an age of 15-20 while 12 (24%) has an age of 21-25. The
15 (30%) of the total respondents has an age of 26-30 and 11 (22%) of the
respondents has an age of 31-35 while the 2 (4%) of the total respondents has an
age of 36-40. The other 2 (4%) of the total respondents has an age of 41-45 and 2
(4%) has an age of 46-50.
Figure Demographic Profile, Age

Age
4%

4%

15-20

12%

21-25

4%
22%

24%

26-30
31-35
36-40
41-45

30%

46-50

20

This figure shows the demographic profile of the respondents when group according
to age.
Table 10: Frequency and Percentage Distribution of the data of respondents
when grouped according to Gender
GENDER

FREQUENCY

PERCENTAGE

MALE

19

38%

FEMALE

31

62%

TOTAL:

50

100%

Presented in table 10 are the frequency and percentage distribution of the

data of respondents when grouped according to Gender. Table 2 shows that 19
(38%) of the respondents are male and majority of 31 (62%) are female.
Figure Demographic Profile, Gender

Gender

38%
MALE
FEMALE

62%

Table 11: Frequency and Percentage Distribution of the data of respondents

when grouped according to Location
LOCATION

FREQUENCY

PERCENTAGE

Brgy. Del Monte Quezon City

11, 792

0.40%

Quezon City

2, 960, 627

99.60%
21

TOTAL:

100

100%

Presented in table 11 are the frequency and percentage distribution of the

data of respondents when grouped according to Location. Table 3 shows that 11, 792
(0.40%) of the respondents lived in Brgy. Del Monte Quezon City and 2, 960, 627
(99.60%) lived in Quezon City.
Figure Demographic Profile, Location

Location

0%
Brgy. Del Monte, Quezon
City
Quezon City
100%

Table 12: Frequency and Percentage Distribution of the data of respondents

when grouped according to Occupation

22

OCCUPATION

FREQUENCY

PERCENTAGE

OWN BUSINESS

10

10%

EMPLOYEE

45

45%

STUDENTS

36

36%

OTHERS

9%

TOTAL:

100

100%

Presented in table 12 are the frequency and percentage distribution of the data
of respondents when grouped according to Occupation. Table 2 shows that 10 (10%)
of the total respondents has an own business while 45 (45%) is an employee. The 36
(36%) of the total respondents are students would be our secondary target market and
the others are 9 (9%).
Figure Demographic Profile, Occupation

Frequency
9%

10%
Employee
students

36%

Others
45%

4th Qtr

23

iii.
Survey
1. Do you use mosquito repellent or have you experience using a mosquito
repellent?
Figure 9: Buying Experience

20%

Yes
80%

No

The graph shown above that 80% of the total respondents is currently using or
experiencing mosquito repellent while 20% of the total respondents are not using
mosquito repellent. So, We conclude that there is a demand for mosquito repellent
because 80% of the total respondents are using mosquito repellent.
2. Does your mosquito repellent satisfy you in terms of protection from
mosquitoes?
Figure 10: Product Satisfaction

24

18%

Yes
No

82%

The graph shown above that 82% of the total respondents are satisfied in terms
of protection from mosquito while 18% of the total respondents are not satisfied. Its
shows that most of the respondents are satisfied to their mosquito repellent in terms of
protection from mosquitoes.
3. Which kind of mosquito repellent do you prefer to use?
Figure 11: Product Variation

26%

Organic Based Repellent

74%

Chemical Based
Repellent

The graph shown above that 74% of the total respondents are prefer to use an
organic based repellent while 26% of the total respondents are prefer to use

25

chemical.
repellent.

Its proven that our respondents want an organic based of mosquito

4. How often do you apply mosquito repellent in a day?

Figure 12: Product Usage

36%
64%

Once a day
Twice a day

The graph shown above that 64% of the total respondents are using mosquito
repellent once a day while 36% of the total respondents are using mosquito repellent
twice a day. We found out that our respondents are satisfied using mosquito repellent
once a day.
5. Where do you usually purchase your mosquito repellent?
Figure 13: Buying Location

26

10%

54%

37%

Supermarket/Grocery
Drugstores
Convinience store

The graph shown above that 54% of the total respondents are answered that
they purchased mosquito repellent in the supermarket and 36% of the total
respondents are in drugstore. The other 10% of the total respondents are answered
that they purchased mosquito repellent in convenience store. So, most of the
respondents are purchasing mosquito repellent in the supermarket/grocery.
6. What do you look when buying a mosquito repellent?
Figure 14: Buying Decision

22%
Benefts
Advertising
Price
78%

Packaging
Store Location

The graph shown above 78% of the total respondents answered that they
looking for benefits when buying mosquito repellent while 22% of the total
27

respondents are looking for price when buying mosquito repellent. Its show that
benefits is important to our respondents in term of using mosquito repellent.
7. Are you aware of Tomato Mosquito Repellent?
Figure 15: Product Awareness

38%
Yes

62%

No

The graph shown above that 62% of the total respondents are not aware of
Tomato Mosquito Repellent while 38% of the total respondents are aware of Tomato
Mosquito Repellent. In the overall results the respondents are not familiar about
Tomato Mosquito Repellent.
8. Do you prefer to buy a Tomato Mosquito Repellent?
Figure 16: Consumer Preference

28

18%

YES
82%

NO

The graph shown above that 82% of the total respondents are prefer to buy a
Tomato Mosquito Repellent while 18% of the total respondents are not prefer to buy.
It shows that the respondents are much willing to purchase Tomato Mosquito
Repellent and that is good news to us.
9. How much are you willing to spend for Tomato Mosquito Repellent?
Figure 17: Consumer Willingness

24%

60-70
76%

70-80

The graph shown above that 76% of the total respondents are willing to spend
PhP60-70 while 24% of the total respondents are willing to spend PhP70-80. Its
shows that most of the respondents want affordable price for them to purchase
Tomato Mosquito Repellent for protection from mosquitoes.

29

10. Which of this scent do you prefer for your Tomato Mosquito Repellent?
Figure 18: Consumer Preference

10%

2%

10%
Chamomile

18%

Lavander
Rosemary

10%

50%

Jasmine
Rose
Scandal wood

The graph shown above that 50% of the total respondents answered they want
a scent of lavender and 18% scent of Jasmine. The 10% of the total respondents are
answered they want a scent of chamomile, rosemary and rose, while 2% of the
respondents wants a scent of scandal wood. Its shows that most of the respondents
want a scent of lavender for the Tomato Mosquito Repellent and thats the scent of
our tomato mosquito repellent.
11. Aside from mosquito protection, what other benefits do you want to get in
your tomato mosquito repellent?
Figure 19: Product Benefits

30

12%

6%
32%
Moisturizer
Whitening
Anti-bacterial

50%

Anti-aging

The graph shown above that 50% of the total respondents answered whitening
for the other benefits of tomato mosquito repellent and 32% of the total respondents
are answered moisturizer for the other benefits. 12% of the other respondents are
wants anti-bacterial and 6% wants anti-aging for the other benefits of tomato
mosquito repellent. Its shows that most of the respondents wants whitening and
moisturizing benefits of tomato mosquito repellent.
12. Which variant of Tomato Mosquito Repellent do you prefer to use?
Figure 20: Product Variation

31

18%

Lotion
Spray
82%

The graph shown above that 82% of the total respondents wants a variant of
lotion of Tomato Mosquito Repellent while 18% of the total respondents wants spray.
Its shows that most of the respondents are want a variant of lotion for mosquito
repellent and thats s good news to us.
iv.

Projected Sales
i.
Per Month in a Year
Table 13: Projected Sales Per Month In a Year

YEAR

DAILY SALES

AMOUNT

MONTHLY
SALES

AMOUNT

2012

52

P 3,900

1,460

P 109,500

2013

100

P 7,500

2,800

P 210,000

2014

200

P 15,000

5,600

P 420,000

2015

300

P 22,500

8,400

P 630,000

2016

400

P30,000

11,200

P 840,000
32

Table 14: Projected Annual Sales

YEAR

ANNUAL SALES

AMOUNT

2012

17,520

P 1,314,000

2013

33,600

P 2,520,000

2014

67,200

P 5,040,000

2015

100,800

P 7,560,000

2016

134,400

P 10,080,000

ii.

In Volume and In Peso

Table 14: Projected Sales in Volume and in Peso

v.

YEAR

VOLUME
(PER YEAR)

TOTAL
(PER YEAR)

2012

17,520

P 1,314,000

2013

33,600

P 2,520,000

2014

67,200

P 5,040,000

2015

100,800

P 7,560,000

2016

134,400

P 10,080,000

Marketing Programs/Strategies
i.
Practices of Competitors

Tomato mosquito repellent does have a direct competitor in the market

because it is the first mosquito repellent made by tomatoes. But it has two indirect
competitors, the Ever Bilena mosquito repellent and Watsons Private brands
mosquito repellent. Ever Bilena has a different variants of mosquito repellent such as
citronella, lemon grass and orange peel. While Watsons private brands has lavender,
citronella, tea tree etc.

33

S.W.O.T ANALYSIS
Table 15: SWOT Analysis

STRENGHTS
First in the Market
Eco-Friendly Product and
Made from natural
Ingredients
Effective as common DEET
based products.
First Mosquito Repellant with
Whitening Lotion

OPPORTUNITIES
Participation within Growing
Industry
Increasing Demand for
Organic Repellent

WEAKNESSES
Lack of Brand Awareness and
Image
Poor Access to Distribution
Lack of Media Alternatives

THREATS
Increased Competition In Market
Downward Pressure In Pricing
Inflation Rate

Creating Positive Product

Image
Expand Area of Coverage
The strength of this product is first in the market, Mosquito repellent based on
tomato extract and essential oils. It is eco-friendly product that made from natural
ingredient and has an active ingredients of tomato extract and essential oils. Effective
as a common DEET based products. Enjoy the benefit of being protected from
mosquito without using chemical based repellent. Tomato Mosquito enjoy its two in

34

one benefit and functionality. The first mosquito repellent with whitening lotion that
contains glutathione and vitamin E so that
Also there are certain weaknesses of this product. Lack of brand awareness
and image. Since tomato mosquito repellent is new in the market it has not yet
established a brand image in the market place, whereas Ever Bilena and Watsons
Private Brand has strong brand recognition. We will address this area with promotion.
Poor access to distribution. Because tomato mosquito repellent is new in the market
it is not yet established a strong distribution and logistic relationship. Lack of media
alternatives. Tomato mosquito repellent has not enough media advertising in
television, radio and prints.
Tomato mosquito Repellent has also a lot of opportunity in marketplace such as
Participation within a growing industry. Increasing demand for Organic Mosquito
Repellant. Creating a positive Product image and attract new customer. Expand the
area of distribution or the area coverage.
Tomato mosquito repellent has also threats in the market place such as
Increased competition in the market place, Downward pressure in pricing, Inflation
rate in the economy that could have negative effect of peoples spending.
ii.

Key Success Factors

The keys to success are designing and producing products that will
meet the market demand.
Create a Positive Brand awareness and Image.
The tomato mosquito repellent must ensure total customer
satisfaction.
To make product that will help the environment and at the same time
to make earn profit from it.
To make an organic product that is proudly Filipino Made.
iii.

Own Marketing Program/Strategies

1. Product Strategy

35

Front Packaging

Back Packaging
With Handle

MrQuito will be in lotion based mosquito repellant and a whitening product that
contains of glutathione and vitamin E extract with an active ingredient of tomato extract
and essential oils. Available in size of a 50ml bottle that would probably convenient and
easy to use. In the next 3 years we were planning to innovate sizes to 100ml and
150ml. We were planning to have refillable mosquito repellent and has a different scent
you can choose from. Such as tropical scent, jasmine, chamomile, and orange peel. It
comes in a fashionable packaging and handy case with different color and design.
Tomato mosquito repellent is a non-greasy lotion and it can be use anytime and
anywhere.
2. Pricing Strategy

P 79.00
SinceMrQuitois first in the market we will use market penetration strategy in
pricing. Since our target market is B and C class it is very applicable to us in using this
kind of strategy. We will set initial low price for our product to penetrate the maximum
revenue layer by layer from the segments willing to pay. This price reflects a strategy of
36

taking shares from Off, Green cross and Guard. We want to position our product in the
mind of our customer that it is a good quality product and at the same time it is
affordable.
3. Distribution Strategy

Our distribution strategy is to be a retail outlet of Mr. Quito mosquito repellent.

We will test the market first if our product will be profitable in its location and if it works
we will add retail store in some areas in Quezon City. We are planning to establish our
store in area of Barangay Del Monte, Quezon City near to our target market. We will
also use websites and online catalogs to reach our working class target market. It would
be very convenient to them to order via internet since they are busy with their works.
4. Promotions Strategy
Marketing Tools

Objectives
To attract
customers and to
increase
awareness of our
product.

Duration
May-December
2013

1. Tarpaulin (4x4)

37

To attract
customers and to
increase
awareness of our
product.

May-December
2013

To attract
customers and to
increase
awareness of our
product.

May-December
2013

To create
awareness about
our product and
to attract new
customers.

May-September
2013

To create
awareness about
our product and
to attract new
customers.

May-September
2013

Posters

Flyers/Leaflets

Foldable Fan

In-store TV Screen
38

(Sony Bravia 32 LED T.V)

Facebook

To give
information about
our recent and
upcoming
activities and
promotions
To extend
customer service
and to generate
more information
towards
customers after
-sale experience

May-Onwards

Twitter
Social Network sites
To give
information about
our recent and
upcoming
activities and
promotions

Website

May-onwards

To extend
customer service
and to generate
more information
towards
customers after
-sale experience

By integrating all messages in print ads and other promotional strategies such as
freebies and other store promotional campaign. We will reinforced the brand name and
the main points of product differentiation and build a positive brand image. Thereafter,
39

advertising will appear on a pulsing basis to maintain brand awareness and

communicate various differentiation message. To attract, retain, and motivate our
customer while we build a eco-friendly product image. We will also use our websites to
communicate in our customers by showing some videos that will show the benefits of
using tomato mosquito repellent. To build customer relationship we will be open a
section for Frequently Ask Question and also we are open to comments and
suggestion of our customers through our website.
Preoperating Marketing Expense year 2012
Marketing Tools

Tarpaulin (4x4)

Posters

Flyers/Leaflets

Objectives

Duration

Quantity

Cost per
piece

Total

To attract
customers
and to
increase
awareness of
our product.
To build
awareness to
the customers
in our latest
promotions
and to attract
new
customers.
To inform and
attract our
customers
about our
product and
create
awareness.

JuneDecember
2012

10

P400.00

P4,000

P250.00

P10,000

10

P30,000

JuneDecember
2012

OctoberDecember
2012

20

3,000

TOTAL:

P44,000

40

PRODUCTION PLAN
Product, Operation and Development Plan
A. Technical Description

Tomato Mosquito Repellent lotion is of made 100% natural extract of tomatoes

and some essential oils such as grape seed and lavender oil. It is a spray based
41

mosquito repellent in size of 10ml bottle that would probably convenient and easy to
use. It can protect the body from mosquito bites and will prevent the damaging effects
of UV radiation from the sun such as wrinkles, sagging skin and age spots. Dr. Michael
Roe a professor from North Carolina State University tested a variety of natural
compounds to find an alternative to DEET-based bug repellents, DEET is a chemical
compound commonly used in heavy-duty bug sprays. As Dr. Roe keeps on finding an
alternative he found out those tomatoes is so effective at repelling insects bites
according to www.sciencedaily.com .
I. Step by step procedures
The step by step procedures of Tomato mosquito repellent body oil on the
following:
1.
2.
3.
4.

In an incise, slice the tomatoes.

Extract the tomatoes and aside it from a different bowl.
Melt the beeswax
Mix the different kinds of essential oils like grape seed, beeswax, tomato
extract and lavender oil in a pot.
5. Let the mixing tomato extract until it will would be the lotion
6. Put the tomato mosquito repellant lotion in the bottle.
II. Duration per Step per Batch
The duration of per step per batch:
1.
2.
3.
4.
5.
6.

For slicing the tomatoes probably having it will be 3 minutes.

15 minutes for extracting the tomatoes.
15 minutes for melting the beeswax.
3 minutes for mixing the essential oils.
3 minutes for mixing essential oils and the extract tomatoes.
Putting them together and measuring it would be probably 8 minutes.
The total duration of process for doing the mosquito repellant lotion is 44
minutes.

III. Labor and Equipment Requirement per Step

The Labor Requirement steps are:
1. Since are company is a small business at first we cant afford having an
employee so we will be the ones doing the task such as slicing the
tomatoes, extracting the tomatoes, mixing the ingredients, and
measuring/putting the oil in the bottle but since as our business grow we
want also hire an employee.
42

2. Design the job for the employees.

3. Posting at the news paper classified ads for the people to know the hiring is
available.
4. Interview them and screen their papers.
5. Background checks the possible employees
6. After the employees pass all the screening will be undergone the training
for the products procedure.
The Equipment Requirement steps are:
As for the other equipment materials requirements steps like
computers and papers for the inventory of sales we are planning are own
personal laptop because of the limited of the budget. For are office space we
are planning to put a space that will be enough for are discussion in our own
spa so it will be more practical wise and time wise for us. The lists of
equipments are stove, streamer, measuring cup, gas and knife the total cost
of the equipments need to buy is P 4,912.00.
C. Production Schedule
I. Monthly Schedule
Monthly Schedule
Months
January
February
March
April
May
June
July
August
September
October
November
December

Ratio
7
9
7.5
6
7
9
10
10
10
9.5
8
7

Quantity
1,316
1,504
1,410
1,003
1,316
1,629
1,880
1,880
1,810
1,786
1,448
1,316

The level of production that we will produced for each month is based on how
high or low of demand will be purchased by our consumer and the table shows that
in the month of July, August, and September theres a high percentage of
consumption of Mosquito Repellent thats why we will increase our production in
the given month. In the preceding year will increase our quantity by 5% and selling
price by 5%. Furthermore, in our third year will increase it by 6%.
43

D. Labor Requirement
Table 18: Labour Requirement
Job Title
Quantity
Job Description
Producers
2
Responsible for doing
the products.
Producers are the ones
who
will
be
implementing
and
protecting the products,
Ensuring the quality of
the products.
Utility/Mai
1
Responsible maintaining
ntenance
proper order of the
facilities.
Maintenance is the one
who will be responsible
for
the
office
equipments and by
providing orderliness.
Driver
1
Responsible
for
delivering the products
to the customers.

Cashier

Job Specification
Salary
Has the experience P 17, 840.00
in the field.
per month
Passing
the (P 8,920.00)
seminars that will be
given.

Must have technical P 8,920 per

skills
and month
experience
in
maintaining
the
facilities in good
ways.

Must
have
the
experience to drive
a car and of course
it must have the
driver license.
Responsible for handling Must
have
the
the financial
mathematical
skill
transactions of
and experience to
a company. In most handle the money.
situations,
a
cashier works directly at
a cash register, ringing
up
the customer's purchase
s and
collecting
their payment.

P 8, 920 per
month

P 8, 920 per
month

Total:
P 44, 600.00
The table shown above the qualifications of officers/staffing, their job description
in which they will performed, job specification that will identify if the person is right for
the said job and lastly the salary equivalent of the employee for our company. The
44

person will be chosen will have the responsibility to do their job effectively and
efficiently.
E. Machinery/Equipment Requirement
Table 19: Machinery Requirement
Equipment

Purpose

Steamer

The main
purpose is to
steam the
beeswax.

Measuring Cups

The main
purpose of this
is for equal
measuring of
the ingredients.

Stainless Bowl

Quantit
y
2

Price

Total

P2,200.0
0

4,400.0
0

P50.00

P100.00

The stainless
bowl serves as
the container
for the
beeswax to
boil.

P20.00

P120.00

Strainer

The main
purpose of
strainer is to
get the extract
of the tomato.

P10.00

P20.00

Shelves

The shelves
serve as the
merchandising
equipment of
the product.

P400.00

P400.00

45

TOTAL

4,340.00
This table shows the needing machinery and equipment of our company for
doing the product such as stove, streamer, measuring cup, gas and strainer. This table
also shows the purpose of every machinery/equipment, quantity, price and the total
cost. This machinery/equipment will cost P 4,932.00.
F. Raw Materials Requirement
Materials

Used

Tomatoes

A tomato is a round fruit with bright-red skin and

pulpy seedy flesh. We need the extract of
tomato.

Bottles
The bottles are used for the container of
product.

Essential Oils
Essential oils are used for the maintenance of
the scent of tomato mosquito repellant and to
keep it preserve the product.

46

Virgin Coconut Oil

Virgin Coconut Oil is known to aid in
maintaining a healthy heart, promote weight
loss, improve digestion, and also in boosting the
immune system.
Beeswax

Beeswax is a natural wax produced in the bee

hive of honey bees of the genus Apis. Beeswax
was traditionally prescribed as the material for
lotion making

Vitamin E
Vitamin E keeps the skin from aging and to
protect against the skin effects of chemicals
used for cancer therapy (chemotherapy).
Glutathione
It is an antioxidant, preventing damage to
important cellular components caused
by reactive oxygen species such as free
radicals and peroxides.

This table shows the raw materials and that we need for our product and such as
tomatoes, bottles, essential oils, virgin coconut oil, beeswax, vitamin e and glutathione.
This table also shows the used of every raw materials.
G. Plan/Factory Location

47

Our

small business is selling a unique product which is tomato mosquito repellent so we are
planning to have a Traditional Brick-and-Mortar store at the Frisco Market Barangay
Damayan, San Francisco Del Monte, Quezon City, because it has a lot of people and
suit the location of our target market assuring that their accessibility to our product. The
planning location of the small business aiming to locate it where the customer needs it
and want it because our target market is belong to type B and C. Frisco
Market Barangay Damayan, San Francisco Del Monte, Quezon City will be the right
place for the business.
H. Plant Layout

48

I. Waste Disposal System

As of now the earth is slowly experiencing deterioration so people in business,
and even households should have a proper waste disposal system. In support of
waste disposal system our small business needs to contain a waste disposal
system, the company is implementing to develop a 5 waste management
planning process:

49

General consideration and background as a starting point, the initiative is

taken to draw up a waste management plan, and all assumptions must be
gathered such as were the waste must be dispose.
Status part in this phase all data and information on the current situation in
the waste management field are gathered and analyzed. Then the current
waste management system is evaluated, i.e. problems relating to the current
system are identified and also the possible solutions to these problems.
Planning part is for preparing for the basis of requirements of the local
government. Processing Area
Implementation after the adoption of the waste management plan, the
planning process must be executed by its course of action.
Plan revision if the implemented planning process must not work for waste
management disposal system the plan must be revised.

J. Quality Control System

Quality control system is very important on every organization. Our plan for
quality control system is must be at its best because quality determined the tangible
product. The quality and safety of the production of our product is very significant to
protect the employees and our product Tomato Mosquito Repellant from harm and
accident. The company will set up quality and safety procedure inside the company
for the staff to maintain.
SAFETY:

The market place of our product should not cause any disturbance to the public
and to the community.
Monitor the service of the employees on a regular frequency.
Always make sure that the electric equipments are unplug before closing to
avoid electricity shortage.

QUALITY:

The ingredients to be used should always be fresh.

Freezer temperature should always be check at all times to assure product
freshness and quality.
Proven system of operation.

Our Quality control system must have a standard that satisfied the consumers,
government and even us who is working for the product (tomato mosquito repellent).
We as the employees of a small business planning to make it in the market must
50

formulate a good quality for our product in order to make a noise on the market and
also making the consumer contented on our service.
K. Production Cost
I. Total Production per Year
Raw Materials
Tomato
Bottles
Essential Oil
Virgin Coconut Oil
Beeswax
Glutathione

Cost per Unit

P5.00
P50.00
P50.00
P500.00
P350.00
P5.00
TOTAL :

Per Year
P1,305.00
P13,050.00
P13,050.00
P130,500.00
P91,350.00
P1,305.00
P 250,560.00

This table shows the price cost and yearly cost of the raw materials our product
such as tomatoes, bottles, essential oils, virgin coconut oil, beeswax and glutathione.
This ingredients or raw materials will cost P 296,379.00 per year.
I.

Production Cost per Unit (please add the per item production cost)

Direct
materials
Tomato

Measurem
ent
ml

Bottles

pcs

Usage per
Unit

Cost per Unit of

Material
80.00

Cost per Unit

Produced
2,320.00

29
5.00

5.00

50.00

350.00

50.00

350.00

500.00

10,000.00

350.00

17,500.00

1
Essential Oil

ml
7

Vrgin Coconut
Oil
Beeswax

ml

Glutathione

pcs

7
g
20
50
Direct Material Cost per Unit P30,525.00

This table shows the price cost and yearly cost of the raw materials our product
such as tomatoes, bottles, essential oils, virgin coconut oil, beeswax and
glutathione.This table shows the cost and the computation of our product per unit
which is P 43.00 per unit.

51

L. Schedule of Utilities Expenses

Utilities
Electricity Bill
Water Bill
Telephone and Internet
Diesel
for
transportation
Rent
Total

Per Month
P 4,627.00
P 1,008.90
P 1,295.00
P 716.80 (P44.80/litter)
16 litters per month
P 6,0000

Per Year
P 55,524.00
P 12,106.80
P 15,540.00
P 8,601.60
P 72,000.00
P 163,772.40

This table shows theutilities expenses of our company per month and year. This
includes electricity bill, water bill, telephone & internet, diesel for transportation/delivery
and rent. The total cost of the utilities expense of the company per year is P
163,772.40.
Electricity Bill
Basic Subgroup
Generation
Transmission
System Loss
Distribution (Meralco)
Subsidiaries
Government Taxes
Universal Charges
Other Charges
Total

Total
P 2,407.41
P 347.24
P 275.31
P 1, 045.62
P 53.92
P 137.42
P 42.06
P 0.00
P 4,627.00

The table shows the summary cost of our electricity bill that includes the
following fee generation, distribution, subsidiaries, government taxes, universal
charges and other charges. The total cost of our monthly electricity bill is budgeted at
P 4,627.00 as possible.
Water Bill
Basic Charge
FCDA
Environmental Charge
Sewer Charge
Maintenance Charge

Details of Charges
P 737.42
P 12.74
P 147.64
P 0.00
P 3.00
52

Total Current
Before Taxes
Add VAT 12%

Charge

P 900.80
P 108.96

Other Charges
Total

P 0.00
P 1,008.90

This table shows the water bill summary of our company that includes the
following charges: basic charge, FCDA, environmental charge, sewer charge,
maintenance charge, value-added tax and other charges. The total cost of our monthly
water bill is budgeted at P 1,008.90 as possible.
Telephone and Internet
Bill Charges
Globe Broad Band 1 MB Bundle 1295
P 1,295.00
GL Softswitch-MSF
P 0.00
Dynamic IP
P 0.00
Total
P 1,295.00
This table shows the summary of the cost of our telephone and internet
monthly. The cost is fixed at P 1,295.00

ORGANIZATION PLAN
IV. Organizational Plan
53

I.

Capitalization of the Company

Members

Amount

Jenina Margaret Malit

P 600, 000.00

Joyce Ann Sabote

P 600, 000.00

Cyan Quirmit

P 600, 000.00

Elinor Albutra

P 600, 000.00

Andrea Sharlene Mangapuro

P 600, 000.00

Total:

P 3, 000, 000.00

The Healthy Herb Company was created by a 5 aspiring business students to

make help the environment and at the same time to make earn profit from it. As the
starting capital of our business each members of the board will contributed P
400,000.00 to make an enough capital to build a business. The total capitalization of
our business is P 2,000,000.00; this will be enough capital for a small business.
A. Legal Form of Business
Our legal form of business will be a general partnership because is a type of
business owned by five who binds themselves to make a common fund to make
profit. The business run with same share of stocks by its owner and all are capable
of making decisions. The members our small business are created and agreed on the
agreement that all of us are willing to be active and personally liable for any legal
actions and debts the company may face on the future.
B. Organizational Structure

54

Jenina Margaret
Malit
General Manager

Joyce Ann Sabote

Production
Manager

Two
Production
Staff

Utility/
Maintenance

Drive
r

Cyan Quirmit
Sales /
Marketing
Manager

Elinor Albutra /
Andrea Sharlene
Mangapuro
Financial / HR
Manager

Cashi
er

The organizational structure is composing of young people/students that have

the quality of a sophisticated managerial skills and technical knowledge of the
business. These young people/students are aiming to be a businessman in the future
and we are guided by our dearest adviser Professor Sabino Canare.
A. Management Team
Jenina Margaret Malit
General Manager
Jenina Margaret Malit is generalist in nature and has responsibilities that span the
organization. She is active in the planning, directing, coordinating, human resources
and general operations decisions. Most or all line managers from each department
report to the GM. She is responsible for the overall performance of the organization.
Joyce Ann Sabote
Production Manager
55

Joyce Ann Sabote is responsible for the production department of the

organization. She is in charge for the product planning and execution throughout the
product lifecycle, including: gathering and prioritizing product and customer
requirements, defining the product vision, and working closely with engineering, sales,
marketing, and support to ensure revenue and customer satisfaction goals are met.
Cyan Quirmit
Marketing Manager
Cyan N. Quirmit is responsible for the marketing department of the organization. She
oversee all marketing, advertising and promotional staff and activities. Also, establish
marketing strategies to meet organizational objectives. Evaluate customer research,
market conditions, and competitor data and implement marketing plan changes as
needed.
ElinorAlbutra
Financial Manager
ElinorAlbutra is responsible for finance department of the organization. She aimed
at utilizing accounting and fund control systems to maintain proper financial balance and
to assure that management obtains maximum benefit from financial resources without
sacrificing efficiency or violating rules or regulations. The financial manager is
responsible for examining and reporting upon work progress and program
accomplishments in financial terms.
Andrea Sharlene Mangapuro
Human Resource Department
Andrea Sharlene Mangapuro is responsible for HR Department of the organization
providing customers with a competitive advantage. Intelligent information is a unique
synthesis of human intelligence, industry expertise and innovative technology that
provides decision-makers with the knowledge to act, enabling them to make better
decisions faster.
The purpose of the management team is to produce a 100 % organic and friendly
product that promotes natural product made of herbal plants to use as an alternative for
the chemical products. To reduce the chemicals that may cause the environment more
polluted. Also, so that they can priorities their own position in the company.

56

B. Qualification of Officers / Staffing

Table 18: Table list of Qualification of Officers / Staffing

Staffing

Job Description

Job Specification

Salary

Producers

Responsible for doing the Has the experience in the P 17, 840.00
products.
field.
per month
Producers are the ones Passing the seminars that
who will be implementing will be given.
and
protecting
the
products, Ensuring the
quality of the products.

Utility/Maint
enance

Responsible
maintaining Must have technical skills P 8,920 per
proper
order
of
the and
experience
in month
facilities.
maintaining the facilities in
good ways.
Maintenance is the one
who will be responsible for
the office equipments and
by providing orderliness.

Driver

Responsible for delivering Must have the experience P 8, 920 per

the
products
to
the to drive a car and of month
customers.
course it must have the
driver license.

Cashier

Responsible for handling

the financial transactions of
a company.
In
most
situations,
a
cashier works directly
at
a cash register, ringing up
the customer's purchases a
nd collecting their payment.

Must
have
the P 8, 920 per
mathematical skill and month
experience to handle the
money.

57

Total:

P 44, 600.00

The table shown above the qualifications of officers/staffing for our company to select
the best people who will be hired to a particular position. The person will be chosen will
have the responsibility to do their job effectively and efficiently.
Table 19: Table list of Qualification of Managerial Position
Position
General
Manager

Job Description

Generalist in nature
and has
responsibilities that
span the organization.

Job Specification

Salary

She is active in the planning,

directing, coordinating, human P 11, 596 per
resources
and
general month
operations decisions. Most or
all line managers from each
department report to the GM.
She is responsible for the
overall performance of the
organization.

Productio
n Manager

Responsible for the She is in charge for the product P 10, 704 per
production department planning
and
execution month
of the organization.
throughout
the
product
lifecycle, including: gathering
and prioritizing product and
customer
requirements,
defining the product vision, and
working
closely
with
engineering, sales, marketing,
and support to ensure revenue
and customer satisfaction goals
are met.

Sales/Mar
keting

Responsible for the Must

be
graduated
of P 10, 704 per
marketing department Sales/Marketing Management. month
58

Manager

of the organization.
She
oversees
all
marketing, advertising,
and promotional staff
and activities.

Must also have the experience

in the field.
Passing the seminar must be
given.

Finance/H Responsible
for Must have the intelligent P 21, 408 per
R Manager finance department of information about the unique month
the organization.
synthesis
of
human
intelligence, industry expertise
Responsible for HR and innovative technology that
Department of the provides decision-makers with
organization providing the knowledge to act, enabling
customers
with
a them to make better decisions
competitive advantage. faster.
Total:

P 54, 412.00

The table shown above the qualifications of all Managerial positions for the
Healthy Herb Company. Each member has their own ability, knowledge and skill to
manage a business to be able to achieve the goals of the company especially to earn
profits.
D. Office Equipment
List of Equipment Requirements
Equipment/Mac
hine

Function

Laptop

The mainly function of the

laptop is maintain and put
records of the company.

Printer

The main function of the

Quantity

Price

Total

P11,000

P22,000.00

P 2,500.00

P2,500.00
59

printer
is
documents
need
Telephone with
wife

Scissor

Calculator

print
the
that might

The main purpose of

router is to access to the
internet

We
used
something
needed.

to
that

cut
is

P 11, 880

P 29.75
P 29.75

Used to compute some

mathematical solving.
1

Stapler

P 990.00

We used stapler as a
mechanical device that
can joins sheets of
paper or similar material
by driving a thing metal
staple
through
the
sheets and folding the
ends.

Total:

P 170.00

P 92.75

P 170.00

P 92.75

P 40, 891.50
60

The table shown above the equipments and machines that the company will be using
and it will helps us to make the transaction easier to our customers.
Furnitures and Fixtures
Furniture and Fixtures

Function

Quantity

Price

Total

Shelves

The shelves
serve as the
merchandisin
g equipment
of the product.

P 400.00

P 1, 600 .00

Office Table

The main
function of the
office table is
to keep the
office organize

P 680.00

P 2,720.00

Office Chair

Office chairs is
for the
employees to
keep them
comfortable.

P 1,000.00

P 4,000.00

P 3, 000.00

P 3, 000.00

Fire Extinguisher

Used in case
of emergency

Total:

P 10,
120.00

The table above shows the furnitures and fixtures of The Healthy herb Company.
61

Office Supply
Equipment/Machin
e
Pencil

Ball Pen

Bond Paper

Log Book

Function

Quantity

Price

Total

The used of
this is to write
something in
the paper or
book.

1 box

P 70.00

P 70.00

The used of
this is also to
write
something in
the paper or
book.
Used to print
the recorded
transactions.

1 box

P 70.00

P 70.00

1 box

P 103.00

P 103.00

Used also to
record
transaction
that we made
with
our
customers.

P 45.00

P 45.00

Total:

P 853.00

The Table show the office supplies of The healthy Herb company.
Other Office Expenses
Others

Function

Quantity

Price

Total

Broom

It will serve

P 40.00

P 40.0
62

as the
cleaning
matrial in
the office
and in the
production
area

Dustpan

It will serve
as the
cleaning
material in
the office
and in the
production
area.

P 25.00

P 25.00

Clock

It will serve
as a time
guide for
the people
in the area.

P 100.00

P 100.00

Total:

P 165.00

Yearly Schedule
Activities
Preparing
business.

2012

2013

2014

the

63

Putting
up
business.

the

Let the business

grow as the years
goes by.
The schedule of the business will start at the 2012 for the preparing of the
business such as Research Study for the business, conducting a financial system,
acquiring the equipments materials, scheduling the labour process. And for the year
2013 the management team will be preparing for the business permits and will start the
putting up the business. For year 2014 let the business grow as the years goes by.
F. Administrative Expenses
Table 20: Salary and Wages Table
Staffing

Quantity

Salary per month

Annual Salary

Producers

P 17, 840.00

P 214, 080.00

Utility/Maintenanc
e

P 8, 920.00

P 107, 040.00

Driver

P 8, 920.00

P 107, 040.00

Cashier

P 8, 920.00

P 107, 040.00

Total:

P 44, 600.00

P 535, 200.00

The table shown above the Salary and Wages of the officers/staffing. It
indicates the salary per month and annual salary of the officers/staffing. Each of them
will get the minimum wage of P446.00.
Table 20: Managerial Position Annual Salary

64

Managerial Position

Quantity

Salary per month

Annual Salary

General Manager

P 11, 596.00

P 139, 152.00

Production Manager

P 10, 704.00

P 128, 448.00

Sales/Marketing
Manager

P 10, 704.00

P 128, 448.00

Finance/HR Manager

P 21, 408.00

P 256, 896.00

Total:

P 54, 412.00

P 652, 944.00

The table shown above the Salary and wages of all the Managerial position of
the Healthy Herd Company. It also indicates the salary per month and annual salary of
the managerial position.
The salary for General Manager is a little bit higher of 30% while the
Production, Sales/Marketing and Financial/HR Manager will have 20% higher.
Table 21: Wages, Salary and Benefits Table
Staffing

Quantit
y

Salary per
month

Annual
Salary

SSS

Phil
Health

PagIbig

Producers
2

Utility/Mai
ntenance

P 17, 840.00

P 8, 920.00

P 214,
080.00

P 107,
040.00

600

300

750

375

Total
Contri
butio
n

522

P 1,
872.0
0

261

P
936.0
0

65

Cashier

P 8, 920.00

P 107,
040.00

300

375

261

P
936.0
0

Driver

P 8, 920.00

P 107,
040.00

300

375

261

P
936.0
0

Total:

P 44, 600.00

P 535,
200.00

1,
500

1, 875

1, 305

P 4,
680.0
0

The table shown above Wages, Salary, and Benefits for the officers/staffing of the
Healthy Herb Company. It indicates the salary per month and annual salary of the
officers/staffing. The benefits that they will get from the company are the following: SSS,
Phil Health and Pag-ibig. The companys obligation is to give the right benefits and to make
them effective to their job.
Table 22: Benefits Total Contribution of Managerial Position
Managerial
Position

Quantit
y

Salary per
month

Annual Salary

SSS

Phil
Healt
h

PagIbig

Total
Contribution

General
Manager

P 11,
596.00

P 139, 152.00

500

575

485

P 1, 560.00

Production
Manager

P 10,
704.00

P 128, 448.00

500

575

485

P 1, 560.00

Sales/Mark
eting
Manager

P 10,
704.00

P 128, 448.00

500

575

485

P 1, 560.00

Finance/HR
Manager

P 21,
408.00

P 256, 896.00

1000

1, 150

970

P 3, 120.00

66

Total:

P 54,
412.00

P 652, 944.00

2, 500 2, 875

2, 425

P 7, 800.00

The table shown above Wages, Salary and Benefits of the Managerial Position.
It indicates the salary per month and annual salary for all the managers of the Healthy
Herb Company. Each of them will get the following benefits such as SSS, Phil Health
and Pag-ibig. This will be the contribution for their personal needs if ever they will
need one of them.
E. Gant Chart of Activities
Activity

Jul

Aug

Sept

Oct

Nov

Dec

Jan

Conceptualizing
Business
Market Study
Product
Development
Searching for
main office site
Renovation of
the main office
Development of
company profile
and
organizational
structure
Looking for
Suppliers
Canvassing and
buying
equipments

67

Induction and
trainings for the
employees
Contract
signing for
suppliers and
employees
Development
and finalizing
the product
Developing
strategies and
promotion
Business
Opening
F. Administrative Expenses
Position

General
Function

Job
Description

Qualification

Responsible
for doing the
products.

Employees are
the ones who
will be
implementing
and protecting
the products,
Ensuring the
quality of the
products.

Has the
experience in
the field.

Employees

Maintenanc
e

Responsible
maintaining
proper order
of the

Maintenance is
the one who will
be responsible
for the office

Salary
PhP
17,040

P 204,480
per year

PhP 8,520
per month

P 102,240per
year

Passing the
seminars that
will be given.

Must have
technical
skills and
experience in

68

facilities

equipments and
by providing
orderliness.

maintaining
the facilities
in good ways.

Total

PhP
25,560

PhP 306,720

We have 2 employees with a gross income of PhP 8,520 each with a total
number of hours of 40 hrs a week. Also, we have one main tenant who will be guided
for the orderliness of the office equipments with the same amount of salary. The
business will expense a total of P 25,560 for the whole month and P 306,720.00 for
the whole year for the hire employees and maintenance officers. The management
team salary will be dependent on the sales revenue of the organization since we are
under on the general partners.
The Other Benefits
Position

Deductions
SSS

Phil
Health

Salary
Pag-ibig

333.2

200

337.32

PhP 16, 169.48

PhP 194, 033.76

per year

166.6

100

168.66

PhP 8, 084.54
per month

PhP 97, 014.48

PhP 24, 254.02

PhP 291, 048.24

Employees
Maintenanc
e
Total
Earnings

As a company we should give benefits to our employees such as SSS, Phil Health and
Pag-ibig. These benefits will withhold to the total salaries of the employees. This
conducted every payroll monthly for them to have an opportunity to gain benefits from
the company and to assured that our employees will do their job very well.
II.

SOCIO-ECONOMIC PLAN

Socio-Economic Plan
A. Commitment to Customers
69

Healthy Herb Co. sees the importance of customers in succeeding in this

business venture and for this reason, we will assure that only quality products will be
given to them in order to meet their expectations and even surpass them. We want to
win the loyalty of our customer and we know that giving them superb quality of product
is a requisite.
We understand the ever changing needs of our customers and for thus we will
continuously improve and develop new ways and techniques to be able to stay as their
top choice of frozen goodness. The health of our customers is very important to us and
that is why along with using ingredients of excellent quality we will also strictly follow
quality standard measures in the preparation of the product.
Because we highly value our customers, we will keep our lines in listening to their
suggestions and comments and this is to ensure that they are happy with our product.
We will also ensure that appropriate marketing will be done in order to attract customers
and that they are in line with the government standards.
B. Employee Relationship
Healthy Herb Co. understands the role being played of the employees and with
their help the company will be able to attain its goals and objectives. Because we want
to be an ethical company by empowering our employees by giving them proper training,
providing them opportunities for career growth, and other incentives based on their
performance in this is to improve their living conditions. We will treat the employees as if
they are family so that they will a sense of belongingness.
Also, the company will make sure that all employees will receive fair treatment
and opportunities. We will also avoid discriminatory practices regarding age, gender,
race, and religion and give them protection from injury and illness in the workplace. We
will ensure that employees will have a safe and healthy working environment.
We will also make sure that their voices will be heard voices will be heard by
listening to their opinion, suggestions, ideas, requests, and complaints and that these
will be taken care of accordingly.
C. Community Development
Healthy Herb Co. believes that as a corporate citizen we can contribute we can
contribute to agencies and communities whose advocate is to promote reform and
human rights. We will make sure that all members of our organization will respect
human rights and democratic institutions.

70

We will also support activities and practices that promote human development by
maintaining harmony between businesses and other members of society.
Also, we will be willing to collaborate with groups and advocacies that are
dedicated to raising standards of health, education, workplace safety and economic well
being. We will also respect the integrity of the culture of the people living in the
community in which we operate.
We will also be active in participating in charitable activities, contribute to
educational and cultural programs, and we will also participate in community affairs.
D. Government Relations
Healthy Herb Co. will be a company that respects the rules and regulations of the
government. We will perform all your business activities in legal manner and we will
avoid any kind of illicit operation.
We will be a company that pays taxes accordingly and cooperates with the regulation of
the government because we understand the importance of free trade and equal
conditions for competitors. We want to be a responsible corporate citizen by abiding by
the law in order to attain a stable and credible reputation.

VI. FINANCIAL PLAN

71

a. Total project costs

Table 12. Total Project Cost per Annum
PROJECT COST
Initial investments in fixed assets, see above for year
one

47,288

Preoperating costs, see above

61,605

Working capital (initial cash requirement; separate schedule)

30,000

Total Project Cost

138,893

b. Sources of Financing
SOURCE OF PROJECT COST
Capital contribution (equity)

3,000,000

Loans (debt)

(2,861,107)

Total Project Cost

138,893

c. Projected Financial Plan

The Healthy Herb Company
Projected income Statement
Year1-3
Year 1

Year 2

Year 3

GROSS SALES

1,445,675

1,593,857

1,790,858

COST OF GOODS SOLD

518,312

555,142

600,116

GROSS PROFIT

927,363

1,038,715

1,190,741

OPERATING EXPENSES
72

EBITDA*

Interest
Depreciation and
amortization

NET INCOME**

365,799

369,190

373,666

561,565

669,525

817,075

446,786

11,416

9,003

114,779

658,109

808,072

The Healthy Herb Company

Projected Cash Flow
Year1-3

73

Projected Balance Sheet

Initial
Balances

Year 1

Year 2

Year 3

74

ASSETS
Current Assets
Cash
508,733

78,452

3,747,695

4,564,392

3,270

3,448

3,728

1,440

1,542

1,668

7,300

7,716

8,344

508,733

90,462

3,760,402

4,578,131

43,888

43,888

43,888

11,941

23,356

32,360

31,948

20,532

11,528

3,000,000

Inventories
Raw materials
Work in process
Finished goods

Total Current Assets

Noncurrent Assets
Property and equipment
Accumulated
depreciation
Net
Investments

508,733
3,122,410
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable
7,631
Total Current
Liabilities
7,631
Noncurrent Liabilities
Long term debt
(2,491,267)
-

3,780,933

4,589,660

8,045

8,699

8,045

8,699

(2,491,267)

3,000,000

3,000,00
0

3,114,779

3,772,888

114,779

658,109

808,072

3,000,000

3,114,779

3,772,88

4,580,960

Owner's Equity
Capital, beginning

Net income for the year

Capital, end
75

508,733

3,122,41
0

3,780,93
3

4,589,660

d. Profitability Indices
Year 1

Year 2

Year 3

Liquidity Ratios
Current ratio (a)

145

194

240

Acid test ratio (b)

145

194

240

Average collection period (days)

21

21

21

Accounts receivable turnover (times)

17

18

18

Solvency
Ratios
Percentage of equity to total debt plus
equity
Return Ratios
Return on sales or gross income
Return on equity (debt plus equity)
Return on assets
Asset turnover
Percentage of EBITDA to gross
revenue

91%

94%

95%

51.19%
41.20%
37.34%
72.94%

52.07%
31.60%
29.50%
56.66%

54.22%
26.99%
25.65%
47.31%

52.96%

53.61%

54.31%
Data

Accounts receivable
Number of days sales
Inventories
Number of days supply of direct materials
Number of days in work in process, average production
time
Number of days to keep finished goods

3
1

76

5
Prepaid items
Percentage to total costs and expenses
Accounts payable

0%

Number of days credit

Accrued expenses
Percentage to total costs and expenses

7
0%
32%

Income tax rate

Projected Growth Rates

2nd year
3rd year

Projected Sales
2nd year
3rd year
Fixed Capital Investment
Machineries and Equipment (Factory)
Description
Cost

Steamer
4,400
Measuring cups
100
Stainless Bowl
80
Strainer
50
Total machinery and equipment:
Machineries and Equipment (Office)
Description
Cost
Laptop
22,000
Printer
2,500
Telephone & Wifi
990
Router
Calculator
170
Stapler
93

Quantity
5%
6%

Selling
Price
5%
6%

Quantity
19,215
20,368

Selling
Price
82.95
87.93

Estimated Useful Life

2
2
2
2

Total
1,593,857
1,790,858

Annual depreciation

2,200
50
40
25
P 4,630.00

Estimated Useful Life

5
3

Annual depreciation
4,400
833

330

3
1

57
93
77

Scissor
Total office equipment :

Description

20

Estimated First Year

expense

Rent

72,000

20
P25,773.00

Estimated Annual Growth

2%

72,000

Total:
Project Cost of Production
Expense Item

Note*

Estimated
First Year
Expense

Year 1

P72,000.00

Estimated
Annual
Growth

Year 1

Year 2

Year 3

72,000

73,440

74,909

55,524

56,634

57,767

12,107

12,228

13,361

11,880

11,880

11,880

24,000

24,720

25,462

130,000

130,000

130,00
0

385

385

385

60,000

60,000

60,000

365,896

369,287

373,76
3

OPERATING
EXPENSES
Rent

Electricity

Water Bill

Telephone
and Internet
Connection
Transportati
on Expense
Advertising
and
Promotion
Expense
Office
Supplies
Salary
Expense

4
5

9
10

TOTAL OPERATING
EXPENSES

72,000
55,524
12,107
11,880
24,000

130,000

385
60,000

365,896

2%
2%
1%
0%
3%

0%

0%
0%

78