BUSINESS PLAN

BEAUTY ORGANIKS

A. DEL ROSARIO ST.

MANDAUE CITY, CEBU, 6014

[email protected]

OWNED BY:

SPAIN LOUISE A. SALA - Filipino

EMMANUEL JOHN A. TUYOR - Filipino

RACHEL FLORES - Filipino

LEAH B. INTIS - Filipino

 INTRODUCTION

This part of the business plan presents the description of the business, its
location and the total funding requirement and the possible funding source.

Description of the business

Beauty Organiks is a provider of organic and naturally-made beauty products that

are affordable, safe and eco-friendly that will satisfy and help people with skin problems.
Beauty Organiks is hopeful in maintaining their vision, mission and objectives
throughout their business. One of their renowned products is the Scrub Luv Facial
Scrub. Their goal is to be one of the leading beauty companies that helps people in
engaging to eco-friendly skin care products.

Location of the business

Beauty Organiks is located between Mang Inasal and Carlos Batchoy. The
owners choose the location for its better access to the potential target market. In
addition, the location is at the center of the city and near the street which adds to its
advantage. There is also no presence of competitors in the area.

Funding Requirement and Source of

Funds

The estimated capital of the business is P148,500. The estimated rent expense
is P5,000, employees salary is P115,000, utilities is P5,000, transportation is P500,
computer is P15,000, furniture is 8,000 and for the monthly expense of raw materials is
P3,780. The capital of the business comes from the owners‘ savings and work salary.
An investor named Taylor Swift will also invest with an amount of P37,200. It was
discussed that Miss Swift will receive a share of 25% in the monthly profit.

At the end of October, the source of funds will be completed.

 EXECUTIVE SUMMARY

The store is a manufacturing company that produces and sells facial scrubs to people
suffering from facial skin problems. The company aims to sell the products for young
adults ages 13-17 specifically from three schools namely Mandaue City Comprehensive
National High School, Saint Joseph Academy, and the University of the Visayas.

The store competes in a highly fragmented and competitive market. It has carefully
combined a variety of strategies into a unique marketing mix to gain as much market as
possible.

Vision, Mission, and Objectives

Vision

We ensure the overtaking of our product as the most reliable, safe, and
affordable organic beauty skin care around the nation.

Mission

To ensure the safety and complete satisfaction of our customers and getting
them close to nature by using organic products.

Objectives

 To help individuals who are suffering from skin care problems in gaining
confidence.
 To help individuals use skin care products that is natural and eco-friendly.
 To provide individuals with skin care products that is affordable.
Business Model

BUSINESS MODEL
Partner Key Offers Customer Customer
Network Activities Relationship Segments
Good quality facial scrubs
Ads Friendly face- Any
Affordable facial scrub
Posters to-face individual
Promos For oily and dry skin conversation who suffers
Beauty Salon Social from skin
Media Good customer service Personalized problems
Pharmacy Website Thank-You such as oily
co notes and dry skin
Key
Resources Distribution
The raw
materials in this
Channels
product will be
Business and Product Position
bought from Walk-in stores
Mandaue City
Public Market

Cost Structure Revenue Streams

Ingredients- P 3,780 The revenue of the business will be gained

Rent- P 5,000 through the monthly sales.
Employees’ salaries- P115, 000

Business and Product Position

Beauty Organiks sells facial scrubs made from organic materials. The Scrub Luv
facial scrub is only P15.00, thus, it is much cheaper and affordable compared to other
products. The business is located between Mang Inasal and Carlos Batchoy. The
location of the business is near the street, it easily attracts possible customer along the
street. The target customers of our business are students from Mandaue City
Comprehensive National High School, University of the Visayas, and Saint Joseph
Academy with ages 13 to 18 years old who are suffering from different facial skin
problems such as oily skin and dry skin. The estimated average allowance of these
students is P50, P60, and P100 in respective order. Beauty Organiks estimated that half
of the students will buy their products. They will have 100 customers per day and each
customer buying 10 products. They will gather a total of 1000 purchases per day, giving
an amount of P15, 000 per day. They will gather a total amount of P110, 180 per month.

Wealth Improvement Approaches

Beauty Organiks is aiming to maintain a great advantage of competitiveness in

the market. To establish this, we have to maintain the good quality of our products and
services. Determining the place where our business will be establish is a great way to
help our business boom because we may be able to distinguish the factors that can
affect the business knowing the strengths and weaknesses of the competitors are also
part of our strategy to maintain a competitive advantage in the market.

The place where the business is located is where there are lots of teenagers
which are our target customers. Specifically the place is near the schools.

Thinking of new ways/strategies to improve the market share is one of the

business‘ approaches that we are aiming. To maximize the utilization of resources, an
inventory should be done every day. We will choose a supplier that is cost-efficient but
has good qualities of the raw materials that we need. We will make products that can
cater all of our customers while utilizing the resources that we have.

Parties Supporting the Business

The business will be supported by the consumers, suppliers, and employees and
staff. As to our business and the consumers, we will be providing them good service
quality. Thus, we will gain their trust and loyalty. As to our business and the suppliers,
they will be the one to provide the needs of our business especially materials needed in
the production of the product. Lastly, the employees and staff should possessed good
attitude, patience, respect, and good customer service. In this way, they can support the
business to have a peaceful and organized atmosphere.
 ENVIRONMENTAL ANALYSIS

This section presents the global analysis, social analysis, and industrial analysis.

Global Analysis

Goldstein Research forecast cosmetic industry worth to be USD 640.0 billion,

expected to be growing at a CAGR of 3.90% during the forecast period. The beauty
industry had been growing globally. In terms of value, USA sales account for 13%-14%
of total market share, EU growing at a good pace owing to large population and high
economic growth rate occupies the 20% market share of the global consumption value.
For the production, China is the largest production region contributing to nearly 23%-
25% market share. They provide a wide range of services for many famous brands with
lower processing cost. Based on geography, Asia Pacific region accounted for largest
market share of nearly 32.0% in 2017, due to the large prospective population in the
region coupled with the factors which are inducing the growth of the market such as
rising personal disposable income and increasing internet penetration in the region.
Further, the Middle East region is anticipated to be growing at a fast growth rate due to
the rising cosmetic demand in the region and thus the increasing establishment of top
global players in Middle East countries. Middle East Cosmetics Market is projected to
reach USD 32.2 billion by 2025 growing at a CAGR of 6.4% during 2017-2025.

The increasing demand for skin care drives Cosmetics industry developing fast.
For the brand owners, such as L‘Oreal, Shiseido,P&G, Unilever, Estee Lauder, KAO,
Shiseido, Avon, lvmh, Chanel, Amore Pacific, Jahwa, Beiersdorf, Johnson & Johnson,
Jialan, Inoherb, Sisley, Revlon,Jane iredale, Henkel, Christian Louboutin S.A., Bottega
Veneta, Balmain, Azzaro, Carolina Herrera, Groupe Clarins SA, and Coty very popular
in the world.

It is undeniable that the cosmetics industry is one of those industries which faces
the least impact from the economic ups & downs. Irrespective of the skin colour and
gender, the production & demand of cosmetics is directly linked to the quality of the
product. Unlike apparels, cosmetics are also not bound by fashion trends across the
world. But the present cosmetics industry is changing its course and is witnessed to be
growing with the increasing adoption of natural & organic ingredients based products.
The market share of chemical-based cosmetics is still large but over the forecast period
(2017-2025) it is expected to fall by a huge margin, to be compensated by the
natural/organic cosmetic products.

Consumers today are well-informed as well as connected, and seek to use

product that are less harmful in terms of chemical composition of a product. Over the
last few years there has been a considerable shift in consumer preference towards
organic or chemical-free products. In line with the global trend, Beauty Organiks focus
more on providing organic skin care products to keep pace with this newly emerging
trend.

Source: www.grandviewresearch.com
Social Analysis

Product safety is a hot topic in the Philippines. It‘s more openly discussed in the
cosmetic segment of the beauty industry since these products are designed for skin-to-
skin contact. the use of these products can pose potential health hazards to the
consuming public and may result to adverse reactions including but not limited to skin
irritation, itchiness, anaphylactic shock and organ failure. In the Philippines, the Food
and Drug Administration (FDA) (formerly the Bureau of Food and Drugs) created under
the Department of Health, is responsible for regulating cosmetic products and ensuring
the safety, purity, and quality of beauty products in Philippines market. Companies will
need to report ingredient statements, recalls, and register manufacturers. All concerned
establishments are warned not to distribute the above-identified violative cosmetic
products until they have already been covered by the appropriate authorization
(cosmetic notification), otherwise, regulatory actions and sanctions shall be strictly
pursued. All Local Government Units (LGUs) and Law Enforcement Agencies (LEAs)
are requested to ensure that these products are not sold or made available in their
localities or areas of jurisdiction.

Additionally, many brands in this industry either import ingredients from other countries
or sell directly on foreign land. They‘re required to follow all political and legal
requirements in whichever country they‘re in, and it can be tricky. For example, Europe
and Canada have harsher ingredient requirements. Out of 1328 cosmetic ingredients,
they‘ve banned over 500. If the product contains any of these ingredients, they won‘t be
allowed across the border. The FDA has a big job to ensure the safety of all ingredients.

Economic factors: A recession-resistant industry

The beauty industry is quite resistant to economic recessions. It even survived the
Great Recession of 2008. Sure, customers became more price conscious, deciding to
buy only what they need for survival, but that‘s the thing. Beauty products have become
a necessity like eating or having a roof over their head. People will always feel the need
to have shampoo and soap in their bathroom.

Reports noted that with Philippine economic growth among the fastest in Southeast
Asia, the retail sector will post a ―healthy‖ compound annual growth rate of 8.2% in the
five years to 2021.

In the Philippines, Revenue in the Cosmetics segment amounts to US$765.9m in 2019.

The market is expected to grow annually by 2.7% (CAGR 2019-2023). In relation to total
population figures, per person revenues of US$7.08 are generated in 2019. It‘s not just
women; men are spending more of their paychecks on products to clear their acne and
get rid of scars. Forums and subreddits are popping up over the internet, discussing the
best routines for flawless skin.

Socoeconomic factors:

K-beauty remained a key trend in 2018 with this focusing on producing healthy and
hydrated skin. This trend has helped drive demand for products such as face masks
and moisturizers, with consumers keen to maintain a healthy and youthful appearance.
Driven by social media and health and beauty trends there is a growing demand for skin
care, including products which are not seen as daily essentials, with this set to flourish
over the forecast period. For example, general purpose body care, acne treatments,
face masks, facial cleansers, facial moisturizers and anti-agers all recorded strong
current value growth in 2018.

It occurs whenever the consumer sees a significant difference between his/her current
state of affairs and some desired or ideal state. The consumer perceives that is a
problem to be solved. In case of skin care products, consumers might concern about
their skin and appearance so using skin care products may help them to maintain or
repair their skin problem. Users feel more pleasant on themselves after using skin care
products. So they feel more confident on their image and it pasts through to their
behaviors and make them more believe in themselves (Amanda, 2004).
Due to the fast growing rate of skincare products and the rise of technology, customers
now rely on social media in hope of finding good products. Customers will try an
assortment of products until they find the one. It is by the reviews, forums and threads
made by the customers that made the brand reliable thus getting the attention in such
saturated market.

Technological factors:

The internet really did revolutionize the beauty industry. With the rise of online
shopping, you can buy almost any product and get it delivered to your home in a day or
two. However, customers still want the same 'real-life' experience online as they do in-
store – they want to know what a product will look like, or smell like, in order to make a
decision. With 87 per cent of people expected to be shopping online and 45 per cent via
mobile phones by 2020, cosmetics companies need to use the most advanced
technology available to introduce products to digital consumers. Recent research from
the Future Foundation found that ―in-store experience needs to work ever harder to
excite and ‗close the deal‘ while the customer is on site‖.

Now two L'Oréal brands have launched partnerships with technology companies to
allow customers to use the latest technology to ‗trial‘ cosmetics before they buy. YSL
has partnered with Google to enable make-up artists to show customers how to apply
their make-up via digital technology, while L'Oréal Paris has launched a 'Make-up
Genius' app to allow customers to see how make-up will look on their face before
buying it.

With everything available online, consumers prefer to do preliminary research about

their choice of beauty products in detail and then head out to offline stores to
experience the product live.

In conclusion, technology is the only thing that can solve all these problems, by not only
revolutionizing the brand experience but also supporting the e-commerce sale of the
cosmetics products.

Environmental factors
Many people use cosmetics and personal care items without a second thought,
believing harmful chemicals will be regulated and discarded. Another impact to the
environment is cosmetic ingredients that were designed to penetrate. Scientists have
found common cosmetic ingredients in human and wildlife tissues such as parabens in
breast tumor tissue and phthalates in urine.

Due to consumer outrage and demand, an increasing number of companies are

attempting to offer certified organic lines. The beauty industry is focusing more than
ever to try and go ―green.‖ Their packaging is becoming increasingly eco-friendly for
less stress on the environment. As consumer gets environmentally conscious, the
skincare industry is becoming more and more environmentally friendly as well,
producing organic products with a main goal to satisfy the consumer's wants and needs.

Legal Factors

The safety and quality of cosmetics or beauty products is essential thus the existence of
leading laws is a lifesaver in which the beauty and cosmetic industry must follow.
Cosmetic products that contain active or restricted ingredients are required to seek
registration and undergo laboratory testing before being sold locally.

All cosmetics exported to the Philippines for retail sale should be registered with the
Food and Drug Administration (FDA) Philippines. A Certificate of Goods Manufacturing
Practice issued by a Government Health Agency and authenticated by the Territorial
Philippine Consulate is also required. FDA evaluates applications for registration in
terms of absence of non-permissible substances, compliance with specific standards
and labeling requirements, and completion of documentary requirements. Cosmetic
products that contain active or restricted ingredients are required to seek registration
and undergo laboratory testing before being sold locally. Additionally, if ingredients
aren‘t up to code (as deemed by the FDA) they can be banned, which is common in
many countries outside of the United States.

Industry Analysis
 The Philippines is evolving into a flourishing consumer market with a modern
retail landscape that‘s a mix of local and international brands, sold both at local
community stores and high-end shopping malls. The Philippines‘ beauty industry holds
huge growth potential, all thanks to a growing middle class and improved logistics. The
country currently boasts a relatively young population with a median age of just 24 in
2017, according to IndexMundi, demonstrating a different form of consumerism that
impacts both retail and product landscapes. The explosion of social media usage
among consumers in the Philippines has exposed them to beauty trends as well as
educated them on product safety, all of which has translated into sales and marketing
opportunities for brands.

It is undeniable to note that Korean beauty has had a big influence on the
Philippines‘ beauty industry with more and more local brands taking inspiration from K-
beauty products. Locally manufactured face products, for instance, are incorporating K-
beauty trends, with the latest product innovations focusing on facial masks, facial
scrubs, and facial moisturizer. Local beauty brands offer these products at very
competitive prices to cater to lower-income consumers, while more premium local
brands are attempting to woo brand-conscious consumers with the premise of not
having to pay more for imported brands. For example, Ever Bilena Cosmetics, a
household name with over three decades of history in the Philippines, first started out in
the nail polish sector and, within just the past two years, has evolved into a full
cosmetics line. Some notable beauty brands from the Philippines include Ellana
Cosmetics, also recognised as the number one mineral makeup in the Philippines; Vice
Cosmetics launched by local celebrity Vice Ganda; and Happy Cosmetics which boasts
formulations said to feature the best skin-caring ingredients sourced from Japan—
where the brand‘s products are also manufactured.

The success of the companies mentioned above inspire the existence of Beauty
Organiks with its renowned skincare product, Scrub Luv which is formulated with natural
and other active ingredients, using the latest natural skincare technologies to create
safe, effective products.
 As consumers around the world become more knowledgeable about products
and ingredients,product quality now supersedes brand names and masstige beauty
product producers like Beauty Organiks have the potential to venture beyond the
Philippines.

Consumer Analysis

Beauty Oraganiks will be targeting students with ages 13-18 years old studying within
three schools namely Mandaue City Comprehensive National High School, University of
the Visayas and Saint Joseph Academy. Beauty Organiks will work hard to distinctly
appeal to each of these groups. By focusing on their needs, Beauty Organiks is
lowering their risk that in a downturn one group will negatively affect the company.

1.1 Market Segmentation

Beauty Organiks will target students from three different schools with ages 13-18 years
old.

Schools. The following schools were chosen due to its proximity to the proposed
location and their capability to buy the products. Mandaue City Comprehensive National
High School will typically make up 50% of the clientelle and University of the Visayas
and Saint Joseph Academy will both make up 25% of the Clientelle.

Age. Ages 13-18 or teenage years is a critical part of one's life. As the teenage body
begins to mature in preparation for adulthood, the skin must also adjust to a number of
factors, including hormones, which significantly changes its structure and function.
Generally, teenage or adolescent skin is tougher and more resilient than that of
children, but is still elastic and able to regenerate quickly. Adolescents encounter some
distinct dermatologic problems, including acne. The exact cause of acne is not known,
but hormones called androgens can play a role. Androgens increase in both boys and
girls during puberty, thus their skin requires specific care.

1.2 Demand Analysis

Consumers, mostly young adults are on a journey of exploration. They are enjoying new
products and finding new brands. This is part of a larger generational shift of younger
consumers rejecting the large brands their parents preferred and seeking out locally-
made, artisanal, natural products in all consumer categories. The need to be
Instagrammable at all times also helps.

The skin category continues to explode with more natural, clean and even food-
standard products. There is a perception that skin and mind are linked and there‘s a
connection between skin care and wellness. Rising trend of the use of natural
ingredients in cosmetic products is observed among various manufacturers. This trend
caters to the ever increasing demand for natural or organic cosmetic products among
customers. Use of herbal cosmetic products minimizes the chances of any possible side
effects of the product. This ultimately increases the usage of cosmetics, especially
skincare products among individuals.

Competitor Analysis

COMPETITORS STRENGTHS WEAKNESS

 The face shop has a good  Their products are

brand awareness since they expensive.
 The face have a lot of branch stores.  There is very little
shop  Their products are natural and advertising of its
inspired by nature. products.
 Their products are inspired by  They lack brand
nature and its love for the awareness.
Philippines and poor  Some of their raw
 Human  They have15 branches all over materials are not
Nature the Philippines. available.
Their products are cheaper compared
to others.

 Their products are branded and  Their company has

 in high-quality. been exposed by
 Their company is known around cheating on their
Asia. customers.
 Mumuso  The inscriptions of
their products are in
different language
which is not
understood by users.
 Belo  Advertised by famous  Their products and
Medical personalities and the only services are
Group beauty company owned by a expensive.
Filipino.
 Dr. Alvin  Has many branch around the  Their products are
Mandaue City quite expensive.
Branch  New to the eye of the people  Their shops has no
proper ventilation.

Perceptual Map
Affordable

Beauty Human
Organiks Nature

Chemical Natural

Dr. Alvin
Mandaue
Brach Belo The
Medical Faceshop
Group Mumuso
Market Forecast

Demand and Supply Analysis

Increasing demand for Organic products & products produced for the purpose of
sustainability has been noticeable. Certainly the growing market connected with reliable
information is driving increased growth. Products and services focused on our aging
population. Said plainly - we have a large retired/retiring population, and many of them
have money to spend. Products and services focused on babies and young children.
This is frequently related to the organic/sustainable movement above. In particular,
millennial moms are willing to pay a premium to make sure their kids have the proper
skin protection.

Natural and Organic Cosmetics Market appears to grow with overwhelming possibilities
as well as opportunities during the forecast period (2018-2023). The natural and organic
cosmetics market is expected to reach revenues worth USD 25,107.7 million, expanding
at a CAGR of 9.60 % till 2023. As mentioned above, it‘s important to remember that
many beauty franchises derive their revenue from product sales; putting the right
product on the shelves can make or break a business. Some manufacturers have a
franchising distribution system of their own and even offer training programs, or partner
with a particular service provider.

Market Share

Market Share

15% 18%
11% The Face Shop
Human Nature
Mumuso
21% 35%
Belo Medical Group
Dr. Alvin Mandaue Branch
Human Nature made up 35% of the market share. Mumuso with 21%, The face shop
with 18%, Dr. Alvin Mandaue Brach with 15% and Belo Medical Group with 11%.

Market Position

Position within the natural skincare market is open for portable products that target
specific skin problems, and are made of simple-familiar ingredients. Most skincare
companies produce products that are topical, and a lot focus on treating skin problems.
Beauty Organiks focus on utilizing natural ingredients to alleviate the effect of skin
problems. As observed, our potential target market are students who are young adults
and is still exploring. Thus, giving Beauty Organiks an opportunity in the market to
produce healthy and safe organic products that can easily blend to a student's activities
and growing body and designed to prevent skin issues. Beauty Organiks also aims to
produce affordable products that are suitable with a student's budget.

Marketing Strategy

In order for Beauty Organiks to communicate this positioning statement, we need to be

visible to its potential consumers. Beauty Organiks set out to interact with their potential
clients, via its: e-commerce website, social media forums (e.g. Facebook and
Instagram, and YouTube), and email. Ideal client utilizes the internet most often. So, it is
more plausible, that most interactions with them would be via the internet. The goal is to
blast this visualized core message on all points of contacts with its potential consumers.
Facebook ads and posts, and its YouTube channel will be highly interactive and
informative to advertise Beauty Organiks.
 ORGANIZATIONAL PLAN

This section describes the form of the business organization, the liability of the
owner, the organizational structure, the role of the owner, and the proposed salary.

Form of the Business Organization

Beauty Organiks shall be in the form of partnership. The shared resources of the
owners provide more capital for the business, with this said, each owner will receive and
share the total profit for the business as well as they are one hundred percent
responsible for their liabilities and loses. The partners will pay taxes according to their
shares in the profit. In addition, the partners will be assigned to a specific assignments
and positions that will make use of their management and supervisory skills.

Liability of the Owner

Beauty Organiks cannot be formed without money. The capital of this business
will be from the owner‘s savings and salary, as well as the P37, 200 coming from Miss
Taylor Swift. The rented space is also liability of the owners. Along the way of making
the business, it cannot be avoided that expenses might overdue. Owners will take a
loan at a bank to sustain and keep the business afloat. In one year, Beauty Organiks
will pay the loan, it will fall under unlimited liability. The bank can take all the personal
property of the owners that may seem to have a value for them. The owners is also a
liability of the business.
Organizational Structure

SPAIN LOUISE A.
SALA
Chief Executive Officer

EMMANUEL JOHN A.
TUYOR
Chief Operational Officer

LEAH B. INTIS RACHEL MAY FLORES

Marketing Manager Production Manager

Sales Staff Production Staff

Roles and Responsibilities

The owners of the business are responsible for defining and maintaining their
goals and objectives.

Spain Louise A. Sala and Emmanuel John A. Tuyor are responsible for setting
strategy and vision, building culture that attracts and retains the very best members,
motivating members and team building, fundraising and setting budgets and forming
valuable partnership.

Leah B. Intis is responsible for the information that supports our business and the
needs of our business: budget, scope, and time, while Rachel May Flores is responsible
for communicating with the stakeholders, enabling consumers, suppliers, and the
production team to make sure the goals are clear.

One sales staff will be hired to interact and serve the customers with our
products. They are in-charge to meet the needs of customers and ensure that they feel
valued and appreciated.

The production staff is responsible for a range of functions including processing,

sorting, and packing the products, as well as operating the machines and monitoring the
output.

Proposed Salary

The CEO will receive a wage of Php 30, 000 monthly and the COO will receive
Php 25, 000. Both managers (production and marketing) are going to receive Php 20,
000 monthly. The sales and production staff will receive a wage of Php 10,000 each. If
the employees wish to overtime, payment of overtime work shall consist of an addition
of 25% of the regular wage per hour worked. Mandated by the Department of Labor and
Employment (DOLE) and its affiliate agency, the National Wages and Productivity
Commission (NWPC), under the labor law, employees will receive a thirteenth month
pay equivalent to one month of their annual salary, Service incentive leave of at least 5
days with pay for every year of service, a right to a weekly rest period of not less than
24 consecutive hours after every 6 consecutive normal work days (day off).
 The company will withhold a portion of an employee‘s monthly salary to remit as
contributions to government agencies is a requisite for employers, these agencies are
as follows: (1)Social Security System (SSS) (2)Philhealth (3) Paternity and maternity
leave benefits that indicates maternity leave of 105 days with full pay, whether the
eligible female employee gives birth via caesarian section or natural delivery. Maternity
leave of 60 days with full pay in cases of miscarriages (i.e., pregnancy loss before the
20th week of gestation) or emergency termination of pregnancy (i.e., pregnancy loss on
or after the 20th week of gestation and includes stillbirth) and paternity leave to 14 days
from the existing 7 days under RA 8187 or the Paternity Leave Act of 1996.
 PRODUCTION PLAN

This section presents the production schedule, production process, equipment

required, sources of materials, and estimated production cost.

Production Schedule

Beauty Organiks produces 45 pieces of Scrub Luv Facial Scrub a day. If there is
more demand and supply of materials high, Beauty Organiks will set a certain quota and
reach it. Depending on the demand and the availability of the supply, the products
produced by the business will be adjusted. Marketing strategies will be used on when to
produce a certain number of products.

TIME ACTIVITIES
6:30 am – 7:30 am Receiving the delivered ingredients for
production.
7:30 am – 8:30 am Preparing ingredients and equipment
needed for product making.
8:30 am – 11:30 am Making the product by following the
production process.
11:30 am – 1:00 pm BREAK
1:30 pm – 4:00 pm Packaging the products.
4:00 pm – 5:00 pm Storing the products.

The Scrub Luv Facial Scrub will be produced a total quantity of 6,000 products
sustain the demand of the consumer for the whole week.

Production Process

Scrub Luv which is made of organic materials is the product of Beauty Organiks.
There are two main recipes to make the Scrub Luv. The first one is honey and coffee.
Measure a cup of honey and coffee. Mix it using a mixer. After mixing, place it in a
container and it is ready to use. The other one is the lemon juice and brown sugar.
Measure and mix 2 cups of brown sugar and a half cup of lemon juice using a mixer.

1 cup of honey
Mix it using a Place it in a Ready to sell
honey
mixer container
1 cup of coffee

2 cups of brown
sugar
Mix it using a Place it in a Ready to sell
mixer container
Half cup of lemon
juice

Equipment Required

The production area of the products will also be place where the business will be
ventured. It will be located behind the business store. The tools will be mixing bowls,
spoons, and spatula. The equipment needed for the production of goods is the
automatic hand mixer. It is used to blend the recipes well, resulting into a refined facial
scrub.

We decided to place our production area behind the store for easier access and
we can directly sell our products after making it. We will also follow the proper
procedure in using the equipment to the good quality of our product.

Sources of Materials

Beauty Organiks will be buying raw materials from a store in Mandaue City
Public Market which supplies all the ingredients needed in making their product. The
supplier is surely known to supply quality materials and ingredients. The mode of
payment will be discussed and negotiate about the set of rules and guidelines in the
delivery system. Surely, discounts will be discussed as well.
Estimated Production Cost

1. Direct Materials
Lemon P1,320
Brown sugar P500
Coffee P300
Honey P1650
Container P165
Total P3,935

2. Direct Labor
Managers P20,000
Benefits:
Overtime P179/hour
13th Month Pay P20,000
5 days leave P3,575
60 days Maternity leave P42,900
Insurance:
SSS P1,474
PhilHealth P1,474
Paternity and Maternity leave (105 days) P75,075
Total P550,777

3. Manufacturing Overhead
Indirect Materials:
Cost of Printing Logos P10
Bond paper P5
Indirect Labor:
CEO P30,000
COO P25,000
Offers:
Equipment P3,000
Utilities P3,000
Total P61,015
 OPERATION PLAN

This section presents the evaluation of suppliers, purchase procedures, storage

and inventory control, and sales procedures.

Evaluation of Supplier

Supply of organic materials is high in the market. Although, prices may vary from
time to time, the assurance of a product with a good quality is not a hundred percent.
Building a business that maintains the quality of the product and its name, the supplier
of the materials must follow certain guidelines set upon negotiation. Beauty Organiks
will partner a supplier that can meet with all of the raw materials needed for the product
making of the business. Beauty Organiks will set a list of guidelines upon delivering the
goods and will set scheduled dates to sustain a proper supply over the course of the
business. During the process of delivery, the supplier must handle the goods with
utmost care to avoid damages and accidents. Upon receiving the supplies, Beauty
Organiks will do an inventory and double check assure the goods receive is in good
quality and in the right amount.

Purchase procedures

Ensuring the good quality of the raw materials that will be purchase is the
owner‘s objective. Negotiation will be done for the proper distribution of discounts prior
to both parties‘ agreement which will result to partnership. Ensuring the maintenance of
the good quality product will be the owner‘s requisition. Trust is an important factor in
order to make a business bloom. Therefore, both parties must gain trust to each other
and should have proper computation of profits to maintain a good relationship with
partners and avoid anomalies.

Sales Procedure

Beauty Organiks is set to attract the market by distributing one thousand flyers in
the adjacent neighbourhood, on the school campus, at the malls within two weeks prior
to the opening of Beauty Organiks. Sharing an active interaction between customers
and employees is a must. The employees will be of dignified stance and will surely
catch the attention of the customers. Other than that, we will make sure that our
products are of high quality that will help us land a leading place in the market.
 MARKETING PLAN

This section presents the 7 P‘s namely: Product, Place, Price, Promotion,
People, Packaging, and Positioning.

Product

Scrub Luv is a facial scrub for people suffering from dry and oily skin. It also
exfoliates black heads and reduces the amount of oil in the face. Scrub Luv maintain the
moisture found on the face.

Place

Scrub Luv will be sold between Mang Inasal and Carlos Batchoy. The location of
the business will always be near a school or university. Along with this, online shop will
also be open where access or transaction from different customers will happen.

Price

Scrub Luv costs P15.00 for each facial scrub. Compared to other facial scrub,
this is very affordable and cheap. Students from different school or university can easily
buy this with their budgets.

Promotion

Advertising, flyers, online website and shop are some options to promote the
Scrub Luv. Great advertising content, attention seeker flyer design, eye-popping
website and accessible online shop is how we get the customers attention.

People

Spain Louise A. Sala will be the Chief Executive Officer (CEO) of the company.
She will handle the overall decision in running the business and making the product.
Emmanuel John Tuyor will be the Chief Operating Officer of the business, he will assist
the CEO on running the business. Rachel May Flores will be the Production Manager,
she will handle all the production process and decision making regarding the
manufacturing of the Scrub Luv. Leah Intis will be the Marketing Manager, she will
handle all the marketing decisions made for the business. All staffs and employees
hired are trained to help the company.

Packaging

Scrub Luv facial scrub will be placed in a small container. The size of the
container will be just enough to place inside the bathroom and enough inside a bag
where it is tightly packed for the consumer not to have a problem.

Positioning

Scrub Luv will be displayed in front of the shop. It will be arranged neatly and
according to its kind. A section of the display area will be allotted for one type of facial
scrub the same as the other kind of facial scrub.