College of Business Administration No. 9 central Avenue New Era, Quezon City
Tivona Organic Soap
A Business Business Plan Presented Presented to the Faculty Faculty of of the College of Business Administration
In Partial Fulfillment of the Requirements for the Degree Bachelor of Science in Business Administration Major in Banking and Finance
By:
Arvin Acuña Acuña Manilyn Eulogio Angelie Hernandez Hernandez Ann Camille Camille Joaquin Joaquin Mary Josel Ordan Claudine Quizon Eymard Siojo
October 2014
INTRODUCTION
Commercial advertisements are included in our daily consumption. A lot of people, not only in the Philippines, are victims of these catchy slogans, emotional clips, high impact music, and well-thought our wordings. If we don’t fall prey on this advertisements, most of the commercialized products of today will go extinct. The skin care industry uses this same method. Big companies are here to make the most profit and people often think that they are really getting those promised “natural” product for a cheap price. The truth is, the skin care industry is not protected from lies. The truth is that the term “soap” is heavily regulated by the US Food and Drug Administration. Big companies in the US are not allowed to use the word “Soap” unless it is truly a real handcrafted bar of soap (Us Regulation: 21 CFR 701.20.). If you are familiar with commercial products that is heavily advertised in your local TV which is in the skin care industry, they often use the term “beauty bars”, ”dry skin cleaners”, and “anti-aging moisturizing bars”. Unfortunately, we just rip the whole bar term and let it be known as regular “Soap”, but in fact, it is basically a Detergent. We are fully aware that the majority of the soaps that are advertised and sold in stores contain plenty of chemicals that most of the people didn’t know. The Filipinos are becoming more health conscious. People of all ages are now tending to prefer organic products. By using organic soaps as an alternative or replacement of your detergent bars, Filipinos can avoid, or at least reduce the risk of having skin problems. Organic soap contains ingredients that have been produced without the use of herbicides, chemical fertilizers, and pesticides. This business plan aims to enter the market as a promoter of health and wellness by pursuing the patronization of the usage of organic and herbal soaps.
Business Name Tivona Organic Soap
The proponents chose the name “Tivona Organic Soap” as their business name. It is well creatively researched to represent a brand in the skin care industry. “Tivona” came from a Hebrew word meaning “Love’s Nature”. It directly reflects the proponent’s intention in providing 100% organic soaps.
Slogan “Fresh from nature!”
The slogan supports the proponent’s objectives. It clearly states the products of “Tivona Organic Soap” came from nature.
Business Logo
The logo includes a human who seems hugging the leaf to symbolize love of nature. It is simple yet attractive and will leave an impact to the consumers of our organic soap.
Business Address
The proponents will have a small factory and a store located at #220 Partida, Norzagaray, Bulacan. The majority of the raw materials are organic, thus the ingredients should be fresh and free from any kind of toxins and Bulacan is a good place because of its unpolluted environment, inexpensive production materials and labor.
Name of the Principals
Arvin Acuña Manilyn Eulogio Angelie Hernandez Ann Camille Joaquin Jocel Ordan Claudine Quizon Eymard Siojo
Nature of Business
The nature of business is under DG Manufacture Chemicals, Prods and ManMade that falls in the category of Manufacture soap and detergents, polishes etc. It is also under Retail sale via stalls and markets.
Statement of Financing Need
It is purely financed by the sole proprietor. The capital will be used for the rental of the place, advertisements, machineries and equipment, and other overhead expenses.
INDUSTRY ANALYSIS
Future Outlook and Trend
Organic soaps are of high demand in the country. People are looking for alternatives in the commercialized products in the market. Some doesn’t know, but some of these products contain toxins which can cause skin diseases and irritation. Large-scale commercial soap companies remove glycerin molecules to make a harder bar and make room for other chemical additives. That’s why some soap makes skin dry. The proponents determined their competitor as GREEN MAGIC ORGANIC SOAP, SOAP SCENTRAL, ZENUTRIENTS, and MILEA. The company will be based on organic soap products. They mainly want to focus on organic bar soaps. It is a sole proprietorship business. Initially, they prepared their business plan for five years. In the next five years, the target that the company will capture is 5% of the total market share. The proponents will have five initial products to produce and to market.
Analysis of Competitors
The proponents listed five companies that offer high quality organic soaps in the Philippines. Companies are chosen based on community interviews on social media sites. Name
Green Magic Organic Soap
Soap Scentral Unit 2B La Rychean Bldg 176 Tunasan Natl rd, 1770 Muntinlupa, Rizal, Philippines
Zenutrients 57 East Capitol Drive Bario Kapitolyo, Pasig City 1603
Location
Manila Bank Corp. Bldg., in Ayala Avenue Makati City Philippines
Form of Business
Milea
Sole Propriertorship
Sole Propriertorship
Sole Propriertorship
Sole Propriertorship
Contact Info
0916 839 1871
9175199830
2345565
917888439
Products
Guava Soap, Tomao Soap, Papaya Soap, Banana Soap, Choco Scrub Soap, etc.Blemish Balm
Avg. Product's Price
Php 65.00
Makati
Cucumber, Papaya, Tea Tree soap, Lemon Sweet Pea, Milk, Calamansi, and Poppy Seed, Green Tea, Charcoal, Milk, Cinnamon, Milk,Carrot, Oatmeal, Pepermint, Guava, etc etc etc Php 58.00
Php 130.00
Php 75.00
Market Segmentation
The company segmented their market according to the demographic segmentation. In these segmentation criteria, it is segmented the customer according to: Age, Sex, Income, and Occupation.
Market Segmentation
Demnographic Age Sex Income Occupation
Demographically, the company's main target is the people who lives in the Philippines, the secondary market is the global population. 16 - 35 Female Middle Income Group Any
Industry Forecast
Organic and herbal soap is just an emerging market in the Philippines, known brand are mostly concentrated with the commercial soap and whitening soap. It is very timely to enter the healthy competition in the market.
DESCRIPTION OF VENTURE
Our business name is Tivona Organic Soap. We have different varieties of soap. We are located in Norzagaray, Bulacan.
Why Organic Soap?
Tivona Organic Soap is made with natural, organic substances that don’t support commercialized chemicals. Organic soap products will leave your skin feeling clean and moisturized and give you mind knowing that your skin is safe from harmful chemicals.
Products Malunggay Soap
Malunggay contains long list of vitamins and minerals. It has 7 times more vitamin C than orange, 4 times more vitamin A than Carrots, 4 times more calcium and 2 times more protein than milk and 3 times more potassium than bananas. It is very nutritious for the skin.
Green Tea Soap
Green tea can be regarded as storehouse of benefits for the skin. It contains antioxidants which are against free radicals. It is also effective in safeguarding the skin from sunburn and tan.
Coffee Soap
Coffee is proven to have skin benefits other than just waking you up. It contain antioxidants, it protects your skin from UV rays, it makes your skin smooth and bright, and it enhances blood circulation.
Tomato Soap
Tomato is a natural astringent that helps to clean your skin pores. Tomatoes are also very rich in antioxidants that help your skin look young and fresh for long.
Carrot Soap
Carrots are high in beta carotene, an antioxidant that is converted to vitamin A inside the body. It helps repair skin tissue and protects against sun’s harsh rays.
Size of business
This business will produce and provide consumer products and organize a small size business.
Office Equipment
As a small business, we start our business with some necessary equipment. Our main office in a 30 squares ft. space garage. We arranged Laptop, tables, chairs and fans for the office operation including marketing the products online. While other basic office supplies such as accounting books, ball pen and others are needed for inventory and accounting purposes.
Personnel
For the new established business, there will be two or three workers that will assist the proprietor in the soap making process.
Background of Entrepreneur
The proprietor attended soap making seminars from professionals.
PRODUCTION PLAN
Manufacturing of organic soap will be maintained by the proprietor and personnel. All raw materials will be gathered and/or purchased from the local market.
Manufacturing Process
The basic discipline that the proprietor will use is the cold process soap making. This method uses the saponification process.
Firstly, measure and weigh the ingredient as specified in the recipe. Secondly, Mix the Lye powder with distilled water using a wooden spatula. The container should be a plastic or glass container and the wooden spatula is a must. This is to prevent the materials from melting. The lye powder is a strong agent that melts metal. Mix the two until the white substance changed its color to colorless white. Set aside. Thirdly, prepare the coloring for the soap in a separate container. Dissolve the coloring powder in a few drops of oil. Use separate stirrer for each color. Set aside. Fourthly, Mix the lye solution and oil using the electric mixer until it becomes creamy. Add the perfume essence, herbal oils, and dried additives. While mixing, add the prepared coloring. Mix continuously until the color is evenly distributed. Fifthly, transfer the mixture in the molds evenly.
Allow the soap to harden for 24 hours. When hardened, slice it using a piece of string or cutter. Store the soap in a clean dry place. I needs to be cured for 2 months before using.
Physical Plant
Production will be done only at a small warehouse/garage to prevent unlikely toxic to penetrate the organic soaps.
Machinery and Equipment Materials
Cost
Stick Blender or Electric Mixer
P2,200.00
Plastic Dipper and Plastic Cups
95.00
Plastic Pail
165.00
Weighing scale
770.00
Bamboo sticks or chopsticks as stirrer
22.00
Soap molds or clean containers without holes
963.00
Piece of string for slicing the soap into desired sizes
98.00
Names of Suppliers of Raw Materials
Soap Scentral
MARKETING PLAN
Pricing
Product costing (1kg for 1 liter formula) Direct Cost
Particulars
Cost
Raw Materials
P433.00
Labor Cost/5kgs/day production (P320/day)
64.00
Water and Electricity
50.00
Total Direct Cost
P547.00
Indirect Cost
Particulars
Cost
Transportation Cost
P100.00
Production Cost
Particulars
Cost
Total Direct Cost
P547.00
Add: Total Indirect Cost
100.00
E s t i m a t e d Pr o d u c t i o n C o s t
P668.00
* Finished product will result in 10 bars of (100 grams/bar) One worker can produce 5 kgs of soap/day (1kg for 1 liter formulation)
Distribution
The products of Tivona organic soap will be promoted though direct selling so the business can be able to penetrate the existing market and encourage users to resell the products aswell.
Promotion
Tivona organic soaps will be promoted through online marketing. The proprietor will provide website and social media accounts to spread the product promotional materials.
ORGANIZATIONAL PLAN Form of Ownership
Sole Proprietorship Management Team Background
The Sole Proprietor will be the one managing the business, at the same time he will be hands on also to the business’ accounting and marketing aspect.
Roles and Responsibilities of Members or Organization
Since the Sole Proprietorship manages all of those essential parts of the management, the subordinates are only soap making helpers.
