Sorsogon State College

Bulan Campus

Bulan, Sorsogon

H.A. PRINTING SERVICES

A Feasibility Study

Submitted by:

Arialyn G. Grafil, BSA-V

Submitted to:

Dr. MICHAEL B. BONGALONTA

 CHAPTER I

Introduction

Printing press is known to be one of the most important discoveries of our time.

According to an article, printing press certainly initiated an "information revolution" . It

drastically changed the way society evolved. Printed texts became a new way to spread

information increased the discussion and development of new ideas. Before the invention

of printing press writings and drawings must be done by hand, most probably if printing

press wasn’t invented we would not have books magazines or news papers. The printing

press made possible the mass production of printed books and other texts, to be produced

quickly, accurately and less expensive.

From the very first printing press operated by hand today’s printing press are

electronic and automated. And if the printing press before are applicable only for paper

printing today there are multiple types of printing presses, each best for a specific type of

printing. They include letterpress, offset press and digital press.

Although there are different types of printing press available there are areas where

in the supply of printing services is not enough to meet the demand of the consumers. It

is because there are very few or worst case no establishments offering different kind of

printing services in that area. Some entrepreneurs are afraid to venture in this kind of

business because it is capital intensive. But proper monitoring of the operation and

appropriate promotional techniques can make the business a successful one. Aside from

the success of business, the demand for printing services are being supplied.
 CHAPTER II
Market Study

Background of the study

Throughout the years the demand for printed works increases from tarpaulins,

banners, flyers, brochures and many more. This increasing demand is the reason for the

rapid growth of printing press establishments. Bulan, Sorsogon is known to be a

commercial centre and is industrially developing. Precisely, business entities, schools,

political parties and campaigns, weddings etc. will automatically create an avenue for the

printing press business.

H.A Printing Services will be situated at zone 4, Bulan, Sorsogon. It will lease a

store where the operations will take place. H.A Printing Services will offer large format

and offset printing. H.A Printing Services will emphasize the perceived competitive

advantage of service, quality, and price, to penetrate the market.

Target Market

The printing press target customers are the schools, business establishments,

private individuals and other organizations situated in the Municipality of Bulan. These

are the anticipated customers of the business in need of printing services.

Supply Analysis

In the municipality of Bulan, there are various entities offering digital printing

services such as t-shirt printing, mugs, invitations and others. In the case of offset and

long format printing, Sosogon Print Plus(SPP) is the only business entity in Bulan

offering such kind of service. SPP renders an average of 15 tarpaulin printing service per

day and an average of 1 offset and other long format printing service per week. However

offset orders are being transferred by the SPP Bulan to its main office. Aside from SPP,

Shutter Circle and T.M Enterprises also offer some kind of printing services. In the case

of Shutter Circle the printing services the entity offers are limited to t-shirt and tarpaulin

printing. For T.M Enterprises there printing services include only photo and tarpaulin

printing. H.A Printing Services will offer printing services for flyers, brochures, school

publications, newspaper and the like.

Demand Analysis

The demand for printing services is expected to come from the business

establishments, schools, and other organizations and private individuals. According to the

latest record, the municipality of Bulan, has a total of 833 registered business

establishment.

From the total of 833 registered establishments, there is an annual average

demand of 3332 for tarpaulin, 16660 for flyers, and brochures 20. For schools, which

have an approximate number of 79 including elementary, secondary and tertiary school,

the average demand for tarpaulin is 394, 4000 for School Paper and 4940 for program
materials. In the case of other organizations and private individuals , 500 tarpaulins and

300 other printed materials.

Supply and Demand Gap Analysis

Products Demand Supply Demand and Supply

Gap

Tarpaulin 4226 988 3238

Flyers 16660 10400 6260

Brochure 62 12 50

School Publication 4000 1000 3000

Program Material 4940 1350 3590

Other Printed 300 122 178

Material

From the existing demand and supply gap, H.A. Printing Services is expecting a

60% demand. It is due to possible expansion of existing printing presses and

establishment of new ones.

SWOT Analysis
Strengths

 The printing press is located in a commercial area making it easy to reach by the

expected customers and giving it the opportunity for having a strong demand

 It offers best image quality printing at reasonable and affordable price

 It uses advance technology

Weaknesses

 The proprietor has little or no idea in the area of printing press services

 There is no stable price for printing materials for production

Opportunity

 Arrival of new technologies

Treat

 Shifts in consumer tastes away from the firm’s products

Market Positioning Strategy

H.A. Printing Services will be a trustworthy provider of consistent service

with the best quality and as one of the best graphic designer in the area of business. H.A.

Printing Services will use the most effective technology to ensure that it satisfies the

needs and wants of the customers. H.A. Printing Services is a printing press that

considers primarily the interest of the customers in terms of service delivery and pricing.

Promotion
 The printing business will use the following techniques to promote the business:

 Radio commercials

 Posters

 Flyers

 periodic promotions offering discounts or specials on various printing items

Pricing

Printing Services Offered Unit Price

Tarpaulin 25.00 per sq.ft.

Flyers 5.00

Brochure 120.00

School publication 30.00

School Program 40.00

Other printed material 20.00

The price per unit for flyers,brochure,school publication, school program and other printed material is base on other business competitors because it is the
usual price charged to customers but the price may still vary depending upon the materials to be used based on the customer wants.

Distribution Channel

Printing press will be using a direct distribution channel since the business is a

service entity. The printing service will be directly offered to the customers and once the

printed work is done the customer will go to the establishment to get the printed work.

There is no delivery involved.

CHAPTER III
Technical Study
Production Layout

The working area of H.A Printing Services will be divided into 3 major areas

including the administrative, typesetting and printing area. An area for the

accommodation of customers will be provided, stockroom for supplies and a comfort

room.

Stock Room for Comfort

Printing Area/Cutting Area Supplies Room

Accommodat
ion Area

Typesetting Area

Administrative Area Entrance/Exit

Process Layout
  The employee in charge in taking orders will get the necessary

information regarding the printing service needed by the customer. Job

worksheet will be used to record the information and the information

should be completed and documented in the job log book.

 The typesetter should be notified if typesetting is needed or the job should

be taken directly to layout if all of the information is camera-ready.

Questions or problems should be directed to the person who took the

order.

 Once the final design is done the job should go to layout, where logos and
art work are added, an original is made, and a plate is prepared for
printing.
 The job is printed

 The front office employee should get a signed delivery receipt and/or a

signed in voice when the job is picked-up. The delivery receipt should

then be placed in the job envelope and the envelope filed in the completed

box.

Take orders
from
customer Type setting Lay out Printing

Scheduling
 H.A. Printing Services will open 8:00 in the morning and will close at 5:00 in the

afternoon. The operation will start when the customer places an order. The employee in

charged for taking orders should get all necessary information about the order, the

customer must be notified if there are changes occurring in the order.

Sanitary

To ensure the cleanliness of the working area a regular mopping will be done.

Wastes will be properly segregated by putting trashcans properly labeled as

biodegradable and non biodegradable, excess papers from the printing process that are no

longer to be used will be segregated from other wastes and will be disposed regularly.

Machines and Equipment

 Offset Printing Machine

 Air Conditioning Machine

 Desktop Computer

 Cutting machine

 Large Format Printing Machine

 Binding Machine

Quality control
 Regular inventory of supplies will be done to ensure the availability of supplies to

be used and every time typesetting is done for a customer, the customer must see a proof

before printing is done.

CHAPTER IV
 Financial Study

Financial Assumption

 Revenue will increase 5% annually

 Utilities Expense will increase 5% annually

 PPE will be depreciated using straight line method of depreciation and having no

salvage value at the end of its useful life

 Computer Equipment and Furniture and Fixtures had an estimated useful life of 5

years (except for Monoblock chairs having a useful life of 3years) with no salvage

value at the end of its useful life

 Salaries for the Graphic Designer and Machine operator will be P7, 500 monthly

(250/day)

 Repair and Maintenance Expense will be P4, 500 per month

 License and Legal expense will be 3, 500 per year

 Income tax expense will be computed based on the table

 Annual withdrawal of 65000

Capital Requirements

The owner of the H.A Printing Services will invest cash amounting to 1,220,000

to start the operation of the business. It will be used to buy the necessary equipment and

supplies needed and the excess cash will serve as the working capital.

Financial Breakdown
Cash Investment 1,220,000
Expenditures:

6ft. Large Format Printing Machine 450,000

Offset Printing Machine 375,000

Cutting Machine 100,000

Binding Machine 125,000

Air Conditioning Machine 30,000

Printer 8,000

1 Computer Set 21,000

Computer Desk 8,000

3 Monoblock Chairs 750

Cabinet 3,500

Office Table 7,560

Sofa 8,950
Ink 10, 000

6ftx50m/164ft Tarpaulin Rolls 19 680

Paper to be used for offset printing 8,000

Bond paper 1,000

Ballpen 50

(1,176,490)

Excess Cash 43, 510

CHAPTER V
 LEGAL and MANAGEMENT STUDY

Nature of the Business

H.A Printing Services will start its commercial service as a single proprietorship,

in such a way that it will register the business name with appropriate department at the

Local Government Unit of Bulan.

Organizational Structure

The figure below shows the organizational structure of H.A Printing Services.

Owner/Manager/Cashier/Secretary

Machine Operator Graphic Designer

Job Specification and Responsibility of personnel

Owner/Manager/Cashier/Secretary

 Owner of the proposed project

 Implement rules and policies

 Responsible for decision making

 Responsible for complying government requirements

 Responsible for receiving customer’s payment

 Responsible for the payment of expenses and acquisition of supplies

Machine Operator

Qualifications:

 Male/Female

 25-35 years old

 High school graduate with technical knowledge on how to operate a

machine specifically machined used in printing press

 Has knowledge or technical knowhow on printing press operation

Responsibilities:

 Responsible for the operation of the machines, printing, cutting and

binding of printed works

 Weekly/monthly report on the status of the machines and equipment

Graphic Designer
 Qualifications:

 Male/Female

 20/30 years old

 At least High school graduate, computer literate, with technical knowledge

on graphic designing

Responsibilities:

 Taking customer orders

 Layout of the orders to be printed

 Graphic design

Socio-Economic and Environmental Aspects

This part deals with the outcome of the proposed project in the Socio-Economic

and Environmental growth of the society as a whole. The following are the benefits of the

society from the H.A Printing Services.

Proponent. The establishment of the proposed project will create wealth and

benefit to its owner a projected

Target market. H.A Printing Services will offer printing services to schools,

business establishments, private individuals and other organizations situated in the

Municipality of Bulan. Thus, H.A Printing Services helps in providing the needs for

printed works.

Community. The proposed project will provide job opportunities.

 Government. Through payment of taxes, licenses and permits, additional revenue

will go to the government that will be used in the socioeconomic development.