PONTIFICAL AND ROYAL

UNIVERSITY OF SANTO TOMAS

THE CATHOLIC UNIVERSITY OF THE PHILIPPINES
SENIOR HIGH SCHOOL
S.Y. 2017 – 2018

Business Plan

Leader: MASANGKAY, Dana Denise S. Group No. 3: 12HA-23

Members: ARANDA, Jade Alexie E.
CONCEPCION, Thea Elisa T.
DY, Jonrich Giann L.
FERNANDEZ, Beatrice Ileana T.
FLORESTA, Wincarylle B.
JUAN, Roselle Erika V.
LI, Anelrose E.
ROLE, Xavier John M.
SUILLAN, Hazel Abigail A.
 INTRODUCTION

Business Objectives

 To produce an accessible and practical product that will benefit society especially,
students who are using backpacks

 To accumulate profit for the money we invested on creating this business

 To create an innovative product that is not only more affordable than other branded
backpack covers but also, made of high quality materials

 To install unique designs on the backpack covers that will be user-friendly

Brand Name: BagCap

Brand Concept

 Unique features

BagCap is made high quality waterproof cloth material built for sustainable use. It is
produced from durable materials, water proof, more affordable than other products (refer to
market research), and designed as user-friendly.

Inspiration to make the product

During rainy season, as students, it is can be quite problematic for us to maintain the
cleanliness of our bags, especially during rush hours of commuting wherein we would care less
in shielding our bags from rain. Using an umbrella is not enough; from our own experiences, we
know that even if we are using an umbrella to keep ourselves dry, the umbrella does not keep our
backpacks dry.

What is it used for?

BagCap is used for protection against rain, scratches, or dirt. It will keep the students’ school
materials and gadgets dry and protected during wet seasons.
How will it be useful to the public?

Our product would be useful because it would be convenient for backpack users who wish to
make their bags last longer and also enjoy hassle free in doing activities that might ruin or soil
their backpacks such as commuting, hiking, traveling. It is also eco-friendly because it is
designed for multiple use and we promote zero waste in terms of packaging; the case of BagCap
can also be used as a pouch to put other things.

Who will benefit from it the most and how?

Students would be the prime beneficiary of our product because majority of the backpack
consumers are students in the Philippines. It would be practical for them because it is easy to use
and it will guarantee that their backpacks would stay protected throughout the trip. This means
they can protect their backpack from being damaged lest it can be used far longer.
Pictures of Prototype

“The Water-Proof Cover for Your Bags”

 MARKETING
Eight P’s

1. PROSPECT
The following potential customers who fit our target market, has the means and ability
to buy, and are authorized to make buying decisions are the following:
I. Students
II. Employees
III. Commuters
The specific trait each of them has is that they want to keep their bags dry with instantly being
able to cover their bags during heavy rain

2. PRODUCT
Main Product:

o BagCap

Product Description and Features:

I. Administers quality weather protection

o BagCap can withstand the rain due to its waterproof fabric.
o BagCap offers resistance to penetration by water.
o BagCap can prevent your bag and its contents from becoming wet and damaged.
II. Features multiple Velcro
o BagCap also features multiple Velcro that resembles a clasp or buckle consisting
of two strips of nylon fabric, one having tiny hooked threads and the other a coarse
surface, which adhere to both sides when pressed together and can
be unfastened if purposely pulled apart
o The Velcro can serve as an assurance that the BagCap will cover the bag all
throughout and will remain intact when placed on the top of the bag when done
being used but still don’t want the extra hassle to put it inside its own pouch.
III. Usable pouch with zipper
 o BagCap comes with a pouch which primarily houses the bag cover.
3. POSITIONING
BagCap helps you prevent your precious notes and irreplaceable papers inside your
bag from being damaged due to its specialized fabric. Unlike any other brand, BagCap
features a high quality waterproof material instead of just water resistant fabric that is
somehow prone to water penetration.

4. PRICE
o Value based pricing of 229 pesos.
o As seen on the market research, most rain covers are very expensive
5. PLACE
I. Physical Store or Business Location

o University of Santo Tomas, España Blvd., Sampaloc, Manila

II. Virtual Store

o Facebook: @BagCapPh / http://facebook.com/BagCapPh

o Twitter: @BagCap_ph / http://twitter.com/BagCap_ph
o Instagram: @bagcapph / http://instagram.com/bagcapph
6. PROMOTION
I. Public Relations (Social Media advertisements)

o Facebook: @BagCapPh / http://facebook.com/BagCapPh

o Twitter: @BagCap_ph / http://twitter.com/BagCap_ph
o Instagram: @bagcapph / http://instagram.com/bagcapph
II. Discount or Limited Special Offer

o A price discount for the first one hundred customers – BagCap will be 229 pesos
instead of 250 pesos (original price).
7. PACKAGING
Wrapping material around BagCap that serves to contain, identify, protect, display, and
promote the consumer item: Waterproof pouch with zipper.

8. PEOPLE
I. Service Delivery

o Relied upon to deliver and maintain transactional marketing.

II. Production/Operation

o Applies business organization and management concepts in creation of goods and

services.
III. Finance & Sales

o Sells the product to individuals or clients.

 IV. Research & Development

o Researches the market and customer needs and developing new and innovative
products and services in accordance with the public needs.
V. Marketing

 Actively promotes the product

 Comes up with various ways to uniquely and creatively promote the product
 Guesses what will make the viewers stop just to view an advertisement

Competitive Benchmarking

BRAND POSITIONING PRICE STRENGTHS WEAKNESSES

NAME

NatureHike Easy to fold and Php 1,200  Sold High pricing

Bag waterproof – 2,200 internationally.
performance can and above  Available at
easily fit a variety Lazada (popular
of sizes for local online shop),
outdoor therefore, attracts
backpacks. many customers.
 Offers various
sizes for various
bags.
Dueter Made of a fine- Php 500 –  Sold High pricing
weave Taffeta- 800 and internationally.
Nylon with a PU above  Available at
coating, designed Lazada (popular
to fit backpacks local online shop),
ranging from 45- therefore, attracts
90 liters in many customers.
capacity.
  Caters to bikers,
hikers, so forth.
TMISHION Waterproof bag Php 634  Sold Does not offer
rucksack for internationally wide range of
travel, camp, and  Available at sizes
outdoor. Lazada (popular
local online shop),
therefore, attracts
many customers.
Hang-Qiao Dustproof and Php 1,100  Offers variety of  High pricing
waterproof cover – 1,200 colors.  Lacks design
bag.  Sold at Lazada and might be
(popular online too plain for
shop), therefore, some
attracts many
customers.
Gregory Pro Pro Raincover Php 5,065  Offers five sizes – High pricing
series provides – 5,326 from 20 to 100
superior weather liters – you will
protection, find the precision
streamlined fit required to cheat
design, and a the wind and shed
lighter weight water like a rubber
compact package duck.
than standard  Sold
raincovers. internationally.
 Sold at Lazada
(popular online
shop) and Amazon,
therefore, attracts
many customers.
 OPERATIONS

START
Customer encounters product

Customer YES Customer inquires, and

interested? selects product

NO

Customer places order

END
Record response and
gather information (for
future references)

Is product
YES NO
Salesperson brings product available as of Order will be listed
and confirms to customer the moment?

Date of product availability

will be told

Transaction occurs
(Payment and receipt) Customer meets with salesperson

Product now
Customer is notified available. Date
promised arrives
Customer receives product

END
Record response and gather
information (for future
references)
 Production Flowchart
START

Look for a manufacturer

Manufacturer capable
NO Look for other
of producing the quality
A A
and quantity of your manufacturer
product?

B
YES

Give details and ask for Production of bag covers

their samples of your and pouches
desired product

Gather and prepare

Make revisions until materials needed
desired product achieved

Cutting
Give the quantity of the
product and set a date for
deadline Sewing

Make a contract with the

Attaching of garters,
manufacturer
velcro, and zippers/strings

B
Inspection for damages
Preparing for pick up

Testing

Final count for the

quantity
Finishing

Packing
Value Chain

Bag Cover:

Water-proof Cloth Bag Cover Bag Cover with

Velcro
● Measured ● Cutting
● Addition of velco
● Cutting ● Sewing
● Sewing
● Addition of garter
● Designing

Pouch:
Water-proof Cloth Pouch Pouch with Handle

● Measured ● Cutting ● Addition of handle

● Cutting ● Sewing ● Sewing

● Addition of ● Designing
zipper/string

6Ms

1. MATERIALS

• Bag Cover

- Water-proof cloth

- Velcro

- Garter

• Pouch

- Water-proof cloth
 - Zipper / String

2. MANPOWER

• Number of workers: 30 (Depends on the manufacturer/supplier)

3. MACHINERY

• Heavy duty sewing machines will be used to stitch our water-proof cloth with a thread to
produce our bag covers and pouches.

4. MONEY

• The capital will be taken from previous sales that earned Php 56,555. The entire cash
outflow amounted to PhP 11,025.76 wherein PhP 10,000 came from the product itself
(100 pieces) while PhP 1,025.76 from the salary of the workers

5. METHODS

• Production process:

Bag Cover: Sewing and Cutting

- Prepare the materials needed; water-proof cloth, garter, and velcro.

- Cut the water-proof cloth in a size that is enough to cover a bag, add at least 2-3
inches for allowance.

- Measure and cut a garter enough to surround the circumference of the cloth.

- Place the garter on the outline of the cloth and fold the allotted space to cover the
garter.

- Sew the folded cloth with the garter inside.

- Cut and sew a velcro on top of the cloth to serve as a tie to hold and close the bag
cover when not in use.
 - Cut another cloth in a form of strips (2 pcs) and sew beside the velcro. It will
serve as a tie to keep your bag cover in place (to be tied on the bag handles).

Pouch: Sewing and Cutting

1. Zipper

- Prepare the materials needed; water-proof cloth and zipper.

- Measure and cut the water-proof cloth in a square shape.

- Fold the cloth and sew the sides forming a rectangular shape.

- Cut and sew a zipper on the open side of the folded cloth.

- Cut a strip of cloth and sew it on the upper left corner of the rectangular cloth to
serve as a handle for the pouch.

2. String

- Prepare the materials needed; water-proof cloth and string.

- Measure and cut the water-proof cloth in a rectangular shape.

- Fold the cloth in half and sew both sides leaving a 1-2 inches on allowance before
the opening.

- Insert a string on the allotted space and fold then sew the cloth to cover the string.

6. MANAGEMENT

Aside from the machines, materials, and money involved in managing the manufacturing
process, we would be dealing with suppliers, manufacturers and our own hired worker/s to
manage our business. In our group, we have been grouped into several areas that are in charge of
Marketing, Production/Operation, Finance & Sales, and Research & Development. We shall
manage a healthy relationship with our partners, associates, and customer.
 HUMAN RESOURCES

President/General
Manager

Marketing Product
Finance Manager
Manager Developer

Customer Service Sales Person Accountant Designer Manufacturer

President/ General Managers- they are the individuals or entity that owns a business in an
attempt to profit from the successful operations of the company. They are the ones who has the
first right in decision making and in the profit. During the bazaar, they are the ones managing the
operations. Like communicating with the entrepreneurship professors so that the workers can
enter the building.

Marketing Manager- marketing managers manage the day to day marketing activities and
develops the long-term marketing strategy of the company in line with their objectives. Our
marketing manager arranges the designs, poster and other advertisement materials.

Financial Managers- financial managers are responsible for the financial health of their company
through investment activities and long-term financing strategies. The financial managers are the
people who hold the money and responsible for the change.
Product Developer- they are the one who's responsible for developing new products or
improving existing products.

Customer Service- they are the representative of their own company who interacts with their
customers to provide them with information, to address inquirie regarding their product and
service. During the bazaar, they are responsible for the inquiries of the customers.

Sales Person- sales person maintains vital link between an enterprise and customers, society,
distributors, retailers, and others. While they are looking out for the physical store, they are also
doing the inventory check and calling out for more buyers.

Accountant- they perform financial functions of their company which is related to the collection,
accuracy, recording, analysis, and presentation of their business organization. The accountant has
a copy of the money flow.

Designer- designers can be an organization or individual that prepares or modifies designs for
construction projects, or arranging, or instructing others what to do.

Manufacturers- they sell equipment and supplies exclusively to organizations such as businesses
or institutions, not directly to consumers.

Salary Computation

Position Basic Wage (For 8 hours) Rater per hour Overtime Pay
 +25% of the
hourly rate x
Sales Person ₱444.00 ₱55.50
number of
overtime hours

Salary Computation for the Bazaar

Position Salary for 2 Days Rater per Overtime Pay Total Salary for 2 days
(8 hours) hour (with overtime pay)

₱55.50+₱13.88
x 2 hours =
Sales Person ₱888 ₱55.50 ₱1,025.76
₱137.76

Wages are based from the minimum wage in NCR the basic wage for 8 hours is ₱444.00. For
the overtime pay minimum wage, this is so because: + 25% of the hourly rate x # of overtime
hours.

FINANCE

1. Sales
 Selling Price x Transaction Count

= Php 229.00 x 20 pcs.

= Php 4,580.00/day

2. COS/ COGS

COS/COGS x Transaction Count

= Php 100.00 x 20 pcs.

= Php 2,000.00/day

3. Gross Profit

Sales – COS/COGS

= Php 4,580.00 – Php 2,000.00

= Php 2,580.00/day

4. OPEX

a. Rent Expense
Operating Days: 2 days

Php 0 /5 days = Php 0/day

b. Utilities
Assuming: Php 0 monthly utilities

Operating Days: 5 days

Php 0/5 days = Php 0

 c. Manpower
Assuming: Php 512.88/day/staff

Number of staff: 1

Php 512.88 x 1 staff = Php 512.88/day

Rent Expense + Utilities + Manpower

= Php 0 + Php 0 + Php 512.88

= Php 512.88/day

4. Net Income

Gross Profit – Operating Expense

= Php 2,580.00 - Php 512.88

= Php 2,067.12/day

5. Break Even Point (Quantity)

Operating Expense / (Selling Price – COS)

= Php 512.88 / (Php 229.00 – Php 100.00)

= 4 units/day

6. Total Investment

Total Cost for 100 units + Total OPEX

= Php 10,000 + Php 512.88

= Php 1,512.88

7. Payback Period in Days

Total Investment / Average Daily Net Income

= Php 1,512.88 / Php 2,067.62

= 0.73 days

Assuming 2,000 pcs. will be sold per year and 360 days in a year
(not applicable for bazaar/this quarter)
8. Annual Net Income

Annual Gross Sales – Annual COS/COGS

= (Php 229.00 x 2,000 pcs.) – (Php 100.00 x 2,000 pcs.)

= Php 258,000

9. Annual Total Investment

Unit Cost x Total Transaction Count in a Year

= Php 100.00 x 2,000 pcs.

= Php 200,000

10. Return on Investment

Annual Net Income / Annual Total Investment

= Php 258,000 / Php 200,000

= 1.29 or 129%

Tabulated Summary of Financial Statement

Sales Php 4,580.00/day

COS/COGS Php 2,000.00/day

Gross Profit Php 2,580.00/day

OPEX Php 512.88/day

Net Income Php 2,067.12/day

Breakeven Point 4 units/day

Total Investment Php 1,512.88

Payback Period In 4 days

Days

Breakdown of OPEX

Rent Expense Php 0/day

Utilities Php 0/day

Manpower Php 512.88/day

OPEX Php 512.88/day

 Annual Projection of Income and ROI

Annual Net Income Php 258,000.00

Annual Total Investment Php 200,000.00

Return on Investment 1.29 or 129%

Cash Flow Statement

Amount

Previous Cash Balance Php 56,555

Cash Inflows

Sales from Service Business Php 100

Total Cash Inflows Php 100

Cash Outflows

Cost of BagCaps (100 pcs.) Php 10,000

Salary for 1 worker during bazaar Php 1,025.76

Total Cash Outflows Php 11,025.76

Ending Cash Balance Php 45,629.24