I.

Executive Summary

This business plan is specially drafted by Father Saturnino

Urios University 3rd year BSBA-Marketing 3rd year S.Y 2014-

2015 in collaboration of the Local Government Unity of

Butuan City. It promotes to help the community of Anticala,

Butuan City to innovate their abundant source of Abaca

fiber. Profits accumulated in the business shall be use in

helping the community to progress and finance projects for

the place to prosper.

II. Project Background

A. NAME OF THE BUSINESS

Butuans PRIDE

Butuans Pride is a brand that can promote Butuans rich

culture, by highlighting one of its abundant resources such

as “ABACA” and creating products made from the latter, and

making it as a raw material for products of “Butuans Pride”

which will not only be profitable but also help the community

of anticala

B. Project Proponents

Creator (3rd year BSBA-Marketing management S.Y 2014-2015)

Implementer (To be determine)

C. General Description of Business

Butuan Pride is a new business venture that is a

collaboration of Father Saturnino Urios University and the

 Local Government Unit to help the locals of Butuan City

specifically the residence of Anticala. Using their abundant

source of Abaca fiber and creating products out of the

latter. It is a non-profit business venture because it

primary purpose is to help the locals of Butuan, All proceeds

shall be given to the community for the main purpose of

cultivating the place and expanding the production of Abaca

fiber.

III. Product and industry profile

A. Product Profile

Products that are produce by Butuan’s Pride uses the

primary raw material of Abaca fiber. Products are designed

to fit in today’s lifestyle specially the household and

young professionals.

B. Industry Profile

Abaca is indigenous to the Philippines.

Abaca fibers were already being woven into breathable

fabrics and made into sturdy sandals in different parts of

the Philippines long before the Spaniards came to the

Philippines in 1521. The abaca is believed to have evolved

in the Bicol region of the Philippines.

Volcanic area like the provinces of Albay and Camarines

Sur in the Bicol Region are suited for abaca cultivation.

The Philippines' tropical climate, rich volcanic soils and

high to moderate rain fall are particularly appropriate to

the growing of the abaca plant.

In 1820, a US Navy lieutenant brought abaca fiber samples

to the United States. Soon after, an export shipment of

abaca was made to Salem, Massachusetts under the product

name of simply "Manila", since the Philippines was

then more known by the name of its capital city, Manila.

After the opening of the port of Manila in 1834, the

Americans became the largest importer of abaca. The

American navy used abaca rope because it had a remarkable

tensile strength as it was more resistant to salt water

decomposition than most vegetable fibers. In fact, it was

and still is the strongest of all natural fibers. These

qualities were appreciated by other foreign shipping

companies as well.

Up to the late 19th century, there were 12 different

varieties of abaca. Each variety has its certain

advantageous qualities, depending on its use. Prior to

1915, there was not a definitive standard for grading the

Philippine abaca fibers. Standards were introduced in that

year and have since been amended several times principally

in 1927 and in 1975.

Originally, commercial production of the abaca fiber was

confined to the Philippines because abaca is a plant

material that is government regulated. In about 1521,

shipments of abaca root stocks were introduced into many

different tropical countries, including fairly large

plantings in Sumatra, Indonesia, in India, Andaman Islands,

the West Indies and Central America. Small abaca plantings

were also made in Borneo.

By 1925, the US Department of Agriculture officials

attempted to grow abaca in the Central American countries

of Panama, Costa Rica, Guatemala, and the Honduras by

sending a shipment of propagating material of the superior

varieties of abaca to said countries. Yet despite some

experimental planting and efforts to expand the industry

in 1931, 1939 and 1942 in several other central American

countries, it remained relatively insignificant. It was

only at the end of World War that a Japanese named Furukawa

was successful in cultivating abaca elsewhere, in Ecuador.

While other plant materials like seeds and flowers are

freely shared among countries. particularly

among research centers, the abaca plant is a restricted

material and government regulated. Thus, if a country other

 than the Philippines claims to grow abaca, DNA testing will

always trace its origin to the Philippines.

Industry analysis

A. Future outlook and trends

To create line of products that will promote and help

Anticala residence creating one of their rich resources of

ABACA into products that can be useful and promoting cultural

awareness.

IV. Marketing Plan

A. Marketing Objectives ( one year Marketing Objectives)

1st Quarter
 Create brand recognition to customers.
 Stablishing quotas for sales.
 Testing for customer need for products.
 Observe Customer reaction
2nd quarter

 Evaluate Customer Reaction.

 Mend Customer Need.
 Create ways for distribution.
B. Market Analysis
1. Customer demand and analysis

According to PCARRD Abaca fiber, popularly known as the

Manila hemp, in international trade has made the Philippines

known all over the world. The Philippines remains the world’s

largest producer of abaca fiber, supplying 85% of the world’s

total requirement, Also Major Importing Countries:

Raw fiber- United Kingdom, United States, and Japan

Pulp – Germany, Japan, France, and USA

Cordage, ropes and twines – USA, Singapore, Netherlands,

UK and Canada

Yarns – Italy, UK, Japan, and USA

Fabrics and fibercrafts – USA, Japan, Spain, UK , and

Hongkong

A. Target market

 The tourist

In order to promote the rich culture of Butuan city

Philippines we made a line of products that can is

suitable for tourist.

 Teenagers

To promote cultural awareness to teens the

entrepreneurs created a line of products which

teens would love.

 Home Décor

The Entrepreneurs created products that can be use at the

household of our customers.

 International Market

According to PCARRD Abaca fiber is one of the main raw

materials that other countries used in producing their

product, Anticala can import Abaca fiber to other

countries.
 2. Supply Analysis

According to an article of Philstar written By Czeriza Valencia FIDA

administrator Cecile Soriano said the government is now grooming

the abaca industry to be more export-competitive through higher-

value processing.

“Not much attention was being given to abaca before but when

typhoon Pablo destroyed most crops in Mindanao, abaca plants

remained resilient,” she said.

Export earnings from abaca fiber and other manufactures fell 25.1

percent in the first 10 months of the year on lower demand for

pulp and raw fiber especially from the United states and Europe.

Exports of raw fiber to Europe fell 19 percent year-on-year while

exports of pulp to the US fell 44.9 p Abaca exports from January

to October 2012 fell to $91.34 million from $122 million in the

same period the prior year.

Read more: http://www.philstar.com/business/2013/02/18/910041/govt-opening-new-markets-abaca-

fiber#ixzz3UhoMC3JP

According to the article Abaca Fiber is one of the most leading

exporting materials in the Philippines, with Butuan City Exporting

Abaca Fiber to other countries and making products made of abaca

it will not only boom the economy of the Philippines but also

Butuan City and help the community of Anticala.

3. Competitive Analysis
 Places in the Philippines producers of ABACA Fiber.

PROVINCE VOLUME (mt) %SHARE

Catanduanes 18,971 33.2
Leyte 7,089 12.4
Northern Samar 3,959 6.9
Davao Oriental 3,300 5.8
Surigao del Sur 3,105 5.4
Davao del Sur 2,994 5.2
Sulu 2,364 4.1
Bukidnon 1,993 3.5
Lanao del Sur 1,665 2.9
Southern Leyte 1,647 2.9

Competitors of Products

 Local stores in Butuan City.

 Plastic wares similar to the features of abaca

fiber of Butuans pride.

B. Marketing Program

1. Product Offering

Candle Holder Total Production Cost of item PHP 59

Pot mat production cost ( PHP 200)

2. Pricing (starting price)

 Candle holder PHP 80.00 per pc

 Pot Mat PHP 280 per pc

3. Promotion

 Creating Flayers and pasteboards for target

market to acknowledge the product.
 Contracting to local TV Station within the
area.
 Contracting the radio station for advertising.
 Create a Trade show at Malls for Customers to
be fully aware of the business.
 Create a website that shall promote the
products at the same time the abundance of
abaca in Butuan.
V. Technical Plan

A. Production and process

B. Production Size and Schedule

 Production Size

 Production schedule

 Office hours

C. Machineries and equipment

http://cnweijin.en.alibaba.com/product/1927624225-

219898317/Abaca_Fiber_Making_Machine.html

(No determine price yet)

D. Utilities

E. Production cost

VI. Management Plan

 (TO be determine in the by-laws of the implementer)

VII. Significant Risk

i. Natural Cause

Some natural cause like Floods, landslides and other

calamity can cause for the raw material (ABACA) to

have no production at all.

ii. Inability for Innovation

To be able to compete with other products made of

Abaca it is mandatory to always innovate product that

will suit the preference of the customers.

iii. New technologies

Products of Butuans Pride is not the like the old concept

of native products, but it fits today’s generation. The

Entrepreneurs where able to forecast the market before

drafting this business plan, asking questions and

evaluating the market before conceptualizing the

products.

VIII. Financial Plan

A. Major Assumption

B. Financiers

C. Projected Sales

D. Projected cost of Goods sold

E. Schedule of operating expense

F.