PHresh Business Plan

Members:
Crisostomo, Matteo
Herrera, Kean
Leandicho, Graciella
Nepomuceno, Jerome
Santiago, Barbara
Singson, Gaby

12-Kibe
 I. Executive Summary
PHresh is a boutique store along Katipunan, Quezon City which aims to promote “creative
essentials” such as bags, t-shirts, and sweaters, while promoting Filipino pride. The company
also wants to give more publicity to Filipino culture, through the designs of items to be sold.
There are already many brands with unique designs and show Filipino pride, such as Fly Art
Productions,Linya Linya, and Team Manila Lifestyle. Though these three help promote
Filipino pride, PHresh focuses on the art of Filipinos and the different cultures. The company
is incorporating stuff that have yet to be seen on shirts, sweaters, or bags such as dialects,
ideologies, etc. Also the art of our products are handmade. The business will have three main
indicators of success. The first indicator of success is if the business is able to voice out different
advocacies and be heard along the process. Second, if the business is able to promote Nationalism and
Filipino pride through the products sold Lastly, the last indicator of success is if the group is able to
promote and support local artist
The company aims to help promote nationalism through their products, while giving
aspiring artists chances to showcase their talent while also learning preservation of culture, and
lastly give a voice to marginalized communities in the Philippines. The company hopes to be
able to be one of the top sellers in the clothing industry in the NCR by providing great products
that delight customers and get them to patronize different Filipino cultures. Aside from that
they want their partner artists, and employees to be satisfied with what they are doing creating
a healthy environment to work in, and of course to make enough profit. The company however
will not hire many employees, because they want to be hands on with the management. They
plan to only hire 6 total employees, being a strength since they will be more aware with what
is happening. Another strength is that they proudly promote Filipino culture. This business
may also prosper through the purchase of tourists, the chance for artists to get known, and
social media. However on the downside handmade products take longer to manufacture and
the company possibly will be dependent on it, there may be a lack in funds, a lot of threats in
the clothing industry both local and foreign.
II. Company and Industry
This section of the business plan will be discussing the competitors, trends in the industry, and key
success factors for the business. By the end of this section, the reader will get a clear justification as to
the creation of the company.
A. The Company
The idea of starting up PHresh came about during the group’s discussion of possible businesses to
start up. It was proposed that the business be a social one in order to help out the community. As students
of a Jesuit school, the members decided on making it a social business due to the idea of being “men
and women” for others. Afterwards, the members researched on various social businesses and these
businesses were given categories such as services, products that are needed for cleaning, and clothing.
It was decided upon that clothes would be sold due to the ever rising need for clothing that was unique
and non-mainstream.
Now that a business idea had been developed, it was time for the members of the group to look for
a cause to support due to the business being social based. Due to the rise in popularity of local art, the
group decided that they would be supporting local artists by putting their artworks on the products
which would be sold to the market. Besides that, the group also decided on the promotion of various
indigenous communities, more specifically, their language. The group would like to make it known to
others that there are communities with such rich tradition. This was also done, so that Filipinos would
be aware of such culture.
B. Competitors

The first competitor that will be discussed is Team Manila, a local based clothing brand which
focuses on producing t-shirts and other apparel along with accessories that showcase nationalism. The
brand the brainchild of two former University of Sto. Tomas advertising fine arts students, Lee Alviar
and Raymund Almazan. The business was started in 2001 with only two employees, Alviar and
Almazan. Their goal was to be able to produce apparel and accessories that showcase various
nationalistic ideologies to simple phrases that reflect the Filipino way of living. Over the years, the
company has amassed a huge following, not only in the clothing industry, but also art and music. The
company does not only focus on producing clothing, but also the promotion of Filipino artists and
musicians. In terms of support for local artists, this can be seen through their creation of Manila Design
Week which they founded in 2009 which aims to showcase the talent and potential of artists in the
country. On the other hand, their support for musicians can be seen through their clothing and
accessories, from collaborations which local bands such as Eraserheads to promotion of up and coming
bands with various events.

Phresh, unlike Team Manila, will mainly focus on the promotion of Filipino culture, more
specifically, undervalued culture commonly found in far flung places. Another difference is the
company will be focus on the production of t-shirts, sweaters, and tote bags, but will not discount other
forms of clothing and accessories when the company has grown. The last difference is Phresh will be
more intimate with the customers due to the size of the business wherein customers may be able to
interact with us and not a hired representative. However, there are also similarities present. For one, the
company will also be promotion local artist when it comes to the prints that will be used. The last
similarity present is how our products will be manufactured. Team Manila uses a silk screen printer for
their items and so will we.

The next competitor of the business is Fly Art productions. Like Team Manila, Fly Art was
started by two friends, Gisella Velasco and Toni Potenciano, who met in Ateneo de Manila
University. Fly Art is a social media based company that was founded in 2013. Fly Art focuses on
producing content that mixes classical art with hip-hop lyrics. The art featured in their works range
from renaissance art to modern art. On the other hand, the lyrics they put on top of these artworks
range from new releases to music found from the early ages of hip-hop, but the lyrics they put are not
limited to rap. Besides the production of social media based content, they also produce t-shirts. They
also collaborate with other local companies such as Halo-Halo wherein they produced various
accessories such as wallets with them and Thread 365 where they produced t-shirts.

What makes the company different from Fly Art is we will be focusing on Filipino Art. Fly Art
mainly focuses on foreign art and lacks being able to promote Filipino culture. Instances wherein they
have, have only been through collaborations with other local brands due to the promotion of locally
made clothing and accessories. Other than that, the company will be showcasing Filipino words or
sayings rather than hip-hop lyrics. The last difference is the company will not be collaborating with
other companies as of the moment, but will collaborate with other companies once the company has
grown and is given the opportunity to. However, there is one similarity and that is the way prints will
be produced. The company plans on laying various Filipino words or sayings from far flung places over
Filipino art similar to how Fly Art does.

Our next competitor is Linya-Linya. According to Linya-Linya’s website, the idea of starting
out the company came from a sketch from two long time friends, Ali Sangalang and Panch Alvarez,
back in 2012. Amongst the two, Ali was the writer and Panch was the illustrator. With this in mind, Ali
would come up with the punchlines for the various illustrations Panch would make. Currently, Linya-
Linya has nine stores scattered around Metro Manila and two stored found in the province. Linya-Linya
focuses on making t-shirts with various quirky taglines to go along with illustrations. They bank on
popular culture for idea designs. Not only do they make t-shirts, they also come out with string bags,
notebooks, and stickers, but none of these can be purchased through their online store.

What separates PHresh from Linya-Linya is our focus on Filipino culture. While Linya-Linya
does showcase Filipino culture through their various illustrations to go along with Filipino sayings with
a twist, their main focus is coming up with something quirky and something that evokes laughter to
those who see it and purchase it. Our pieces will mainly focus on the culture of the Philippines,
especially culture that is often disregarded by members of the society. The aim of the brand is to be able
to promote the culture of the country. Other than that, Linya-Linya gets their designs from themselves.
As mentioned earlier, Linya-Linya was started by an illustrator and a writer and because of that, they
come up with the designs they wish to put on their products. PHresh will be getting their designs from
Filipino artists. The company has decided to do so in order to promote Filipino art, especially artists
who are just starting out. Lastly, PHresh will be donating a portion of its earnings to the communities
whose cultures the business is trying to promote and also to local artists. This is being done due to the
nature of the business which is a socially driven business.
C. Trends
At the present time, one of the most basic and necessary clothing items are T-shirts. The staple
item has come a long way from its initial classification. Back in the late 1800s T-shirts, which were
initially referred to as ‘union suits’ were fairly known as they were used as undergarments. However,
as years passed various companies applied their own modifications to the staple garment, it progressed
from being a one-piece undergarment to a two-piece product of P.H. Hanes Knitting Company. These
modifications allowed the success of T-shirts to consistently increase as it continues to improve its
structure and gain more usage. This is evident in the year 1938 as it was recognized by then as an outer
shirt which allowed it to break its barriers of being confined as just an undergarment.
However this does not end the growing success of T-shirts and only served as the start. It started
gaining even more popularity as it became a fashion statement, various celebrities wearing it such as
James Dean in his role in “Rebel Without a Cause”. Eventually they were used as a means of promotion,
an example of which is the use of Governor Thomas E. Dewey for his presidential campaign. As new
products were invented, they were incorporated to the improvement of T-shirts. Soon after, slogan, tie-
dye, wrinkle-free, and printed shirts were produced and continued to gain recognition.
The history of the progression of T-shirts is important as it is a manifestation of the industry’s
ever-growing value. The possibilities on how it may be modified for the better are endless, and the
company aims to validate this proposition. The company’s products do not only satisfy the demand for
aesthetically pleasing and affordable high quality items but combines cultural awareness to the mix, a
feature that sets the company apart. The increasing demand of the products consequently led not only
to the constant proliferation of rivalries within the industry but also the improvements on the concepts
towards its production, the company will be able to contend with these competitors through the said
distinct products.
It is claimed by the Huffington Post that more than 2 billion shirts are sold worldwide annually.
The state of the T-shirt industry in the Philippines is similar to its position internationally. In the year
2013 the T-shirt Printing Business was at its peak at the value of 3 billion pesos, and it is safe to say
that it has only increased since then. Although there is not much available data to the history and
progression of the use of T-shirts in the Philippines it is evident that its advancement is just as rapid
locally. This may be seen through the different styles, designs, and trends that are being adapted by
Filipino Entrepreneurs in order to offer something new that will pique the customers’ interests. The
company, however, plans to go beyond these expectations, as it does not only intend to cater to the
customers’ interest but also targets to be beneficial to achieve the much deserved attention towards the
rich culture of the locals.
D. Key Success Factors
The business will have three main indicators of success. The first indicator of success is if the
business is able to voice out different advocacies and be heard along the process. Next, if the business
is able to promote Nationalism and Filipino pride through the products sold wherein the indicator will
be if awareness is raised for various issues and communities in the country. Lastly, the last indicator of
success is if the group is able to promote and support local artist and this can be checked through their
own growth and the recognition of people.
The business wishes to voice out different advocacies through the t-shirts being sold. A way the business
will see whether or not this is achieved is if the voices are being heard. There are many ways this can
be seen, but the main focus is through social media and knowledge of our products. Through social
media, the customers may be able to spread the word regarding our products and what the business
stands for. In that way, they too may voice out the different advocacies the business is voicing out.
Social media was decided upon due to how information spreads quickly during this so called digital
age. Next, if the customer has knowledge of the products and what they mean, that will be an indicator
of success. There is more to the products than what a customer sees for there is a meaning behind every
single t-shit, sweater, and tote bag. Rather than simply buying the product because it is appealing to the
eyes, the business aims for the customers to purchase the products because of what the business stands
for and what it means for Filipino culture.
In relation to the first indicator of success, the second wishes to be able to promote Nationalism and
Filipino pride. As stated earlier in the business plan, the subject of the business’ products will be Filipino
Art and the various dialects around the Philippines. Like the first indicator of success, this indicator
deals with the spread of knowledge. If various issues surrounding our country such as issues found in
the preservation of culture are spread out through the products, then that will mean success for the
business. Another way this indicator can be seen is if the business is able to make Nationalism
mainstream the same way Team Manila was able to do it, but what sets the business apart is the focus
on local artist and the various communities around the country and their culture. Since the business will
be giving focus to these communities, another way the business will showcase this indicator is if a
percentage of the profits will be given out to them for the preservation of their culture thus promoting
Nationalism and Filipino pride.
Lastly, if the business is able to support Filipino artist then that will mean success on the part of the
business. This can be seen through the growth and the recognition these artists for the prints seen in the
products of the business will be artworks from various artists. Another way is through being able to
donate a percentage of profits to these artists for whatever it is that they might need to continue working
on their craft. Lastly, the business wishes for these artists to have better opportunities once a product
with their artwork is releases. An opportunity could be in the form of amassing a large following, new
projects with other artists, and gaining a share of the spotlight with bigger artists.

III.Business Goals
Vision
Our vision is to establish PHresh as one of the country’s leading social businesses. To provide quality,
creative, and socially relevant shirts that educates citizens about the Philippines while helping in the
development of our fellow Filipinos.
Mission
Our mission is to help instill a sense of nationalism in every Filipino through creative essentials that
spread awareness of the diverse linguistic culture of the Philippines. We also aim to fuel Filipino artist’s
passion for the preservation of culture and give a voice to local marginalized communities. Together, a
fresh culture of nationalism and unity shall emerge.
 Objectives Key Result Areas Performance
Indicators (in 5 years)

1. To a. Number of boutiques and souvenir a. One for each in city

establish a shops in Metro Manila in Metro Manila,
strong b. Sales volume attained total of 16 shops
market c. Market share in NCR b. ₱89, 352, 000
presence in
c. 20%
NCR

2. To delight a. Growth in sales per outlet a. 20%

customers b. Percentage of repeat customers b. 60%
with c. Number of customer commendations or c. 15 out of 20; 1 out of
quality and complaints 100
creative d. Awards and recognition given by the d. Three by Metro
shirts community or the government for excellent Manila Cities
service e. 4.5 (on a scale of 1 to
e. Customer survey rating to ascertain 5)
customer’s degree of delight

3. To make a.Compensation and benefits of managers and a. 15% above industry

PHresh a workers are above industry rates b. 1 out of 10 per year
fulfilling b. Management and employee turnover c. 40% more job
place to c. Number of job applicants compared to other applicants
work in similar establishments.
4. To help a. Number of communities that the company a. 10 communities
develop has given aid b. Increased by 45%
communiti b. Increase in
es with our the evolution
profits of the
different
dimensions
of the
communities
helped

5. To help a. Number of Filipino Artist joining art a. 30, 000 Filipino

local submission contests Artists
Filipino b. Sales volume of shirts with designs made b. ₱26,805,000
artists to be by local Filipino artists
known

6. To increase a. Sales volume attained compared to other a. ₱35,740,000

patronizati small to medium scale foreign brands
on of local
goods
through
our
products

7. To earn a. Amount of net profits realized for the next a. ₱15,000,000

good five years
b. 60%
financial b. Return on Equity
c. 35%
return for c. Return on assets
d. 20%
its owners d. Return on sales
C. Business Objectives and Key Performance Targets
The chosen objectives reflect the mission and vision of PHresh as a social business. These objectives
put emphasis on PHresh’ goal to expand, earn, employ, elate customers, and empower local
communities and Filipino artists:

IV. SWOT Analysis

Strengths Weaknesses
- Long production time for products
- Promote local Filipino artworks - Inadequate start up funds
- Small amount of employees needed

Opportunity: Threats:
- Increase of tourism in the Philippines - Preference of imported goods/products
- Many eager local artists who want to - Other local clothing brands
showcase their work - Supplier dependent
- Social media promotions

Strengths:

One strength that can be found in our business is that we proudly promote Filipino artworks
and artists through our hand made products. We believe that having hand made products will set us
apart from our competitors because we will be able to control the quality of our goods and make sure
that each product is specifically manufactured in high quality. Another strength in our business is that
we plan to hire only a few employees because we, the owners of our business plan to become hands
on meaning that we will personally work for the business. We plan to create shifts that will divide our
group equally on when and how long in a week we will work for our business. This is a strength
because by being hands on, we will be able to inspect and manage our business personally. If ever a
problem arises in our business, we will be able to fix the problem right away because we are
personally there to control the situation.

Weakness:

One possible weakness to our business is that we may have a long production time for our
products since our products will be hand made. This may cause delay and even loss of stocks due to
the high demand of our products. Another possible weakness in our business is that we may not have
much start up funds or capital since we are just a small starting business. We may have a hard time
producing the products as well (like looking for suppliers for our products) because we are just a start
up business. Our group is not yet knowledgeable and aware of who our potential suppliers would be.
Our group is still in the process of looking for suppliers that we can eventually partner up with once
our business is already up and running.

Opportunity:

Some opportunities present in our business are the 19.6% increase in tourism from 2016-
2017. This can help our business sell more of our products because tourists are one of our target
marketers. Another opportunity for our business is the many unknown artists in the Philippines who
do not know how to get their work seen by others. This is an opportunity for us because it makes it
easier for our business to acquire artworks from many unknown/underground artists because we help
them get their work seen by publishing their art on our shirts. Lastly, another opportunity for our
business could be the use of social media to promote our product. This is an opportunity because we
could use social media as a platform to promote our product to other people (mostly adolescence
because they use social media more often) and this could also help us get feedback about our product
from other social media users as well.

Threats:

One possible threat to our business is the preference of many Filipinos to use imported
products over local goods. This serves as a threat to our business because it could possibly lessen the
amount of people who would want to buy our product. Another threat to our business are the other
local brands that sell clothing such as Fly Art Productions and Team Manila lifestyle. These other
brands serve as a threat to our business because they could possibly have a better marketing campaign
which could lessen the our products from getting sold since they also sell local clothing which also
promotes Filipino culture. Lastly, another threat to our business could be us being too supplier-
dependent. This is a bad for business because the supplier of our shirts and for our printing could
possibly go out of business and lead us to stopping production and having to find new suppliers.