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MARY THE QUEEN COLLEGE (PAMPANGA) INC.

CHAPTER I: PROJECT BACKGROUND

A. Review of Related Literature

This chapter presents the related literature and studies done by the

company for better comprehension of the study. The review of this study aims to

determine if the combination of lemongrass extract and paraffin wax could be

developed as mosquito repellant candle. Facts were gathered from references in

order to get the needed information for the study.

Mosquito

The American Mosquito Control Association stated that mosquitoes cause

more human suffering than any other organism; in fact, over one million people

worldwide die from mosquito-borne diseases every year. In addition, mosquito

bites can cause severe skin irritation through an allergic reaction to the

mosquito's saliva - this is what causes the red bump and itching. Mosquito

vectored diseases include protozoan diseases, malaria, filarial diseases and

viruses such as dengue, encephalitis and yellow fever.

According to the clinical presentation of the Medical Entomology

Sensitivity to mosquito bites varies with individuals, most people have only a mild

reaction but others can have severe symptoms from the saliva of mosquitoes.

Typical symptoms include swelling, redness and irritation at the puncture site. If

the bites are scratched or traumatized, they may become infected with bacteria

and a secondary infection can be initiated, especially on the lower limbs. The

diagnosis of mosquito-borne diseases including Dengue, Australian encephalitis,

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and Ross River and Barmah Forest viruses can only be confirmed with

appropriate blood tests.

National Geographic once revealed that, mosquitoes are carriers, or

vectors, for some of humanity’s most deadly illnesses, and they are public enemy

number one in the fight against global infectious disease. Mosquito-borne

diseases cause millions of deaths worldwide every year with a disproportionate

effect on children and the elderly in developing countries.

Insect Repellant

Millions of people are patronizing chemical-based mosquito repellants for

complete protection from mosquito bites. But the most common insect repellants

used in several homes may be poisonous and are able to produce health

problems. According to an article posted in blogspot by Cory Thiarello, children

are the most vulnerable group in the case of insect repellants, with the exposure

to chemicals; young children are susceptible to change in their brain chemistry.

This is because of the fact that the skin of children tends to absorbs more

chemicals. In addition, this can harshly result in impaired growth; and affect the

development of the nervous system.

One of the most famous insect repellant here in the Philippines are

mosquito-coils, a mosquito repelling incense, usually shaped into a spiral, and

typically made from a dried paste of pyrethrum powder as defined by Wikipedia.

The site also posted the disadvantage of using such insect repellant which

showed that the smoke generated from a burning mosquito coil is of certain

health concerns – one burning mosquito coil produces the same amount of

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particulate mass (diameter up to 2.5 μm) as 75-137 burning cigarettes would. Dr.

Ang Ai Tin, a pediatrician of 20 years, warned: 'Mosquito coils are made of

substances like coconut husk, sawdust and dyes to keep them burning for up to

eight hours. Burning one mosquito coil would release the same amount of smoke

as burning 75 to 137 cigarettes. The report said the pollutants released by

mosquito coils exceed air safety levels. Dr Ang said: 'Breathing in too much

smoke will increase the risk of asthma and cause persistent wheezing in

children.'

Lemongrass

According to the Epicentre Encyclopedia of Spices, lemongrass is a tall

plant native to the tropics. The stalk contains the same type of oil that is found in

lemon peel and has a similar scent. Lemon grass grows best in full sun and moist

soil, thus, making it easy to grow here in the Philippines. An article posted on

HomeGuides states that; at low doses, lemon grass oil is non-toxic. The historical

long-time and widespread use of lemon grass oil all over the world also speaks to

its safety. As a natural insecticide, lemon grass and its oil are not associated with

some of the toxic or harmful side effects of other insecticides. Lemon grass oil

has been labeled as a low risk pesticide by the U.S. Environmental Protection

Agency. Thus, making this plant as a mosquito repellant safe to use. An article

posted in Mosquitnoband.com stated that the benefit of using lemongrass as

mosquito repellent is that it is safe and non-toxic to humans and animals.

Although some people can have mild allergic reactions to the oil, even

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ingesting citronella will not affect humans it is simply broken down and passed

out of the body through urine.

Related Studies

A study made by Jared R. Eifert, presented at the California State Science

Fair (2004 Project Summary), states that, lemongrass is 51% effective as a

natural insect repellant.

A 2002 report in the journal Phytomedicine studies with birds and starved

mosquitoes, using topical applications of lemon grass oil in the form of cream or

liquid paraffin solution, was effective protection against the hungry mosquitoes,

comparable to commercial mosquito repellents.

B. Brief Description of Proposed Business

BioSol Company is established and known in creating and producing

unique and low-priced insect repellents and it intends to be based in Angeles

City, Pampanga, Philippines. It focuses in catering clients domestically. This

2017, the company come up to its newest product line “Culex” a Mosquito Killer

Candle from Lemongrass Extract and Paraffin Wax.

Nowadays, different kinds of mosquito repellent are being patronized by

the public, such as mosquito magnets, mosquito patches and lotions among

others, but these repellents are somewhat expensive that many cannot afford to

buy them. Due to the availability of candles and abundance of lemongrass, the

company thus decided to come up with a mosquito repellent candle from

lemongrass extract and paraffin wax. According to the World Health Organization

(2014) more than half of the world’s population is at risk of mosquito-borne

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diseases such as dengue, malaria, yellow fever and the like. Every year, more

than one billion people are infected and more than one million die from vector-

borne diseases. The Organization also emphasizes that these diseases are

entirely preventable. This study aims to come up with a means of preventing

mosquito-borne diseases such as dengue fever. Being a candle at the same

time, the product can also be used as light source especially during power

interruptions. The process does not need expensive factory equipment and it is

not hazardous for health compared to the commercially available mosquito

repellents.

Our company’s vision is to be the first ever leading producer of quality

insect repellents in the Philippines. We are to offer our customers unique insect

repellents.

C. Company Name and Logo

BioSol Corporation chose to have a simple

logo like what is illustrated to express

sincerity and purity of the service and the

product the company provide to consumers.

Color green signifies life, nature, freshness,

eco-friendly and balance. The company makes sure that the product they

offer tomarket is a mix of organic materials and chemical to prevent some

reaction of the latter used that may affect the health of the user. Leaves in

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the logo depict hope, renewal, revival and symbolizes the care we have

for our potential customers.

D. Location

BioSol Company is located at Sto. Domingo, Angeles City,

Pampanga with an approximate land area of 600 square meters which is

very adequate to attend efficient operation of the business. This place was

chosen because it is populous, accessible and it is near with customers

and suppliers.

E. Vision, Mission and Objectives

Vision

BioSol Company envisions itself to be the leading producer of

quality and affordable anti-mosquito candle in Angeles City, Pampanga,

and to build a mosquito-free community with the help of the most reliable

mosquito-repelling brand that can protect its consumer against the

diseases brought by the mosquitoes.

Mission

BioSol Company is committed in producing the best quality

products at fair and affordable price that can secure the health of its

customers from the disease-carrying mosquitoes. We also adhere to earn

customer’s trust by delivering the products to the fastest possible way.

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The company also aims to contribute in reducing unemployment present

in Pampanga by providing jobs and training.

Objectives

 To introduce “Culex” to the target market by producing candles with

mosquito repelling components.

 To increase customer’s loyalty and trust

 To give knowledge and enhance the skills of our employees

 To maintain high rates of customers

 To establish and maintain a good relationship among our customers and

with all our employees.

 To help in prevention of the world wide threat brought by the mosquitoes.

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CHAPTER II: ORGANIZATION AND MANAGEMENT STUDY

In this chapter, it involves the initial capital of the company, the job

analysis/job description and specification of our employees, and the hiring

process.

A. CAPITALIZATION

The Biosol Corporation give a initial budget of one million pesos for the

start-up production of the mosquito repellant lemongrass candle. The following

are the breakdown of one million pesos: Cash of 158,400, Supplies of 91,600,

and a total equipment of 750,000.

B. JOB ANALYSIS

Job analysis is the basis for valuation and selection of decisions. It is

crucial that you are aware of the nature of the job and who deserves the job. Job

analysis delivers a mode to progress this understanding by scrutinizing the tasks

made in a job. The immediate products of this analysis are job specifications and

job requirements.

POSITIONS NUMBER OF PERSONNEL

General Manager 1

Bookkeeper 2

Production Head 1

Marketing Head 1

Production Staff 5

Delivery Clerk 2

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Driver 2

Utility Personnel 3

C. JOB SPECIFICATIONS AND DESCRIPTIONS

1. GENERAL MANAGER

 Job Description

 Supervises the overall performance of the business

 Responsible in implementing policies

 Responsible in internal and external marketing

 Locates potential markets. Negotiates and maintains good relationship

with them

 Ensures all the customer queries and requests are responded in a timely

manner

 Responsible in preparing budget plan

 Responsible for receipts, disbursement and custody of money

 Job Requirements

 25 years old or above

 College graduate (Business related course)

 Must have a knowledge in bookkeeping

 With at least three year experience of being a business manager

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2. BOOKKEEPER (OUTSOURCE)

 Job Description

Responsible for the preparation of Financial Statements

Responsible in maintaining Payroll System

Ensures company’s abidance to tax laws and providing tax requirements

 Job Requirements

23 to 40 years old

Must be graduate of Accounting course

Must have a knowledge in bookkeeping

3. PRODUCTION HEAD

Job Description

Responsible for overall production duty

Responsible for purchasing raw materials and supplies

Maintains good relations with co-employees

Job Requirements

20 to 40 years old

College graduate (Business related course)

With one year experience in the field of marketing

4. MARKETING HEAD

Job Description - Responsible for advertising, securing the orders of the

buyers and overall marketing aspects of the company

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Job Requirements

 24 to 40 years old

 College graduate (Business related course)

 With at least one year experience

5. PRODUCTION STAFF

Job Description - Responsible for making candles

Job Requirements

1. 18 to 40 years old

At least high school graduate

2. Must have one year experience in candle making

6. DELIVERY CLERK

Job Description - Responsible in the delivery and inventory of delivered

products

Job Requirements

Male

At least 21 years old

At least high school graduate

With experience in driving a delivery truck

Must have a driver’s licence

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7. DRIVER

Job Description - Responsible for the delivery of products

Job Requirements

 Male

 At least 25 years old

 At least high school graduate

 With experience in driving a delivery truck

 Must have a driver’s license

 Must be familiar with the routes where the company operates

8. UTILITY PERSONNEL

Job Description - Responsible for overall cleanliness of business site

Job Specification

 18 to 40 years old

 At least high school graduate

9. HIRING OF EMPLOYEES

Employees are necessary factors in a success of operations of the business. The

services rendered by employees are better shown appreciation and importance

through fair amount of compensation.

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Employment is very important because of this; people will have a source of

income to satisfy their daily living and wants.

 HIRING PROCESS

1. The applicant will directly go to the General Manager and submit to him his

Resume or Bio-data and will have an interview.

2. If the applicant is qualified, he will be oriented about his job and the rules

and regulations of the business

3. The applicant is hired, he should pass the following:

a) Police clearance

b) Barangay clearance

c) Medical certificate

d) SSS EI Form/ Pag-ibig and Philhealth Number

e) Valid ID

f) Certification of previous employment (if applicable)

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CHAPTER III: MARKETING STUDY

A company’s marketing plan is a key input to the business plan. It should

identify the most promising business opportunities for the business and outline

how to penetrate, capture and maintain positions in identified markets. It is a

communication tool combining all the elements of the marketing mix. It spells out

who will do what, when, where and how, to achieve its ends.

It is the process that brings together the abilities of the company and the

requirements of its customers and the consideration of the marketing

environment and the process of developing, pricing, promoting, and distributing

goods, services and ideas to satisfy the needs of consumers. Many people

incorrectly believe that marketing is the same thing as advertising or personal

selling; this definition shows marketing to be a far broader activity. Further, this

definition emphasizes the importance of beneficial exchanges that satisfy the

objectives of both those who buy and those who sell ideas, good, and

services— whether they are individuals or organizations.

To serve both buyers and sellers, marketing seeks discover the needs and

wants of prospective customers and to satisfy them. This prospective customers

include both individuals buying for themselves and their household, and

organizations that buy for their own news (such as manufacturers) or for resale.

The key to achieving these two objectives is the idea of exchange, which

is the trade of things of value between buyer and seller so that each is better off.

The main objective of this chapter is to know if the proposed project is feasible.

This chapter would consists brief description of the target market, survey

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questionnaires, supply and demand analysis and the marketing strategies that

were design by the proponents by analyzing the existing marketing practices of

similar business.

 TARGET MARKET

The goal of market research is to find the best customers. Target markets

are those individuals or groups most likely to become your customers. They have

common characteristics and needs that your business will be able to satisfy.

The proponents have chosen to have Sto. Domingo, Angeles City,

Pampanga as their target market since it is populated place having a total

population 361,532 and has a total household of 67,963 which are near to the

market considering that the area consists of 33 Barangay around the town

proper.

The following are the Barangays located at Angeles City, Pampanga:

Agapito del Claro M. Recto Lourdes Sur Amsic

Rosario

Cuayan Anunas Cutcut Lourdes Sur East

(Talimundoc)

Balibago Cutud Malabanias Capaya

Lourdes North Margot Ninoy Aquino Pandan

West (Marisol)

Pulung Maragul Mining Pulungbulu Salapungan

Pampang Pulung Cacutud

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SWOT ANALYSIS

SWOT analysis is a business technique that a company can perform for

each of its product services and markets when deciding on the best way to

achieve future growth. The process involves identifying the strengths and

weaknesses of a company, and opportunities and threats present in the market

that it operates in.

 STRENGTHS  THREATS

1. Dual purpose candle 1. Arrival of competitors

2. Lessen dengue cases 2. Threats in bad economy

3. Sold in other chain retailers 3. Possible increase of raw material

4. Low-cost price cost

5. Easy access to all of the needed 4. Changes in law that can affect the

resources and raw materials business

6. Product that is new and innovative 5. Pests and weather

 WEAKNESSES  OPPORTUNITIES

1. Purchases are based on 1. Increase employment rate

discretionary spending 2. Customer loyalty

2. Local operation 3. Growing market

3. It may not be patronized because 4. Affiliate relationship with retailers

of technological advancement

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SURVEY FORM

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SURVEY ANALYSIS

The questionnaire will acquire more knowledge considering the feasibility

of releasing a new product which is candle made of lemongrass . The survey

conducted was based on the available resources of the proponents. We have a

total of 50 respondents from different household in the Philippines.

1. ARE YOU USING INSECT REPELLENT LIKE


MOSQUITO COIL?
NO 0%
16%

YES
84%
This shows that 84% are using insect repellents in their home, and 16% are not.

2. ARE YOU USING CANDLE?


NO
0%
12%

YES
88%

88% of the respondents are using candle while 12% are not.

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3. HOW FREQUENT YOU USE CANDLE?


0% OFTEN
16%

SELDOM
ONCE IN A WHILE 24%
60%

Often16% are using candle, 24% are using it seldom while 60% are using

candle once in a while.

4. WHEN DO YOU USUALLY USE CANDLE?


DINNERTIME
0% ALL SOUL'S DAY
16%

WHEN
BLACKOUT
84%

This shows that none of the respondents use candle in dinnertime, 16%

in all soul’s day and 84% when blackout.

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5. WHICH DO YOU PREFER?


(IN TEMS OF LOOK.)
0% CARVED
16%

PLAIN
84%
This shows that 16% prefer carved candles while 84% prefer plainly made

candles.

6.DO YOU AGREE TO USE THE CANDLE AS


MOSQUITO REPELLENT?
NO 0%
22%

YES
78%

This represents that 78% agreed to use candle as a mosquito repellent while

22% disagree.

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7.IF EVER WE OFFER YOU THIS PRODUCT, ARE


YOU WILLING TO BUY?
NO
6% 0%

YES
94%

94% of the respondents said that they will buy our product and 6% will not.

8. DO YOU THINK OUR PRODUCT WILL BE


USEFUL TO YOU?
NO
4%0%

YES
96%

This shows that 96% thinks that our product will be useful to them and 4%

says that it will not be useful.

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9.IF YOU USE IT AND IT'S EFFECTIVE TO YOU,


WILL YOU BUY OUR PRODUCT AGAIN?
NO
4%0%

YES
96%
96% of the respondents said that if they proved our product effective they will buy

it again while 4% said that they will not buy our product again.

10.IF IT IS USEFUL TO YOU, WILL YOU


RECOMMEND OUR PRODUCT TO YOUR
RELATIVES AND FRIENDS?
NO
0%
0%
2%

YES
98%

This represents that 98% will recommend our product and 2% will not.

Because of the data presented above, we therefore conclude that

making candle using lemongrass is necessary for the reason of its dual

purpose and it is easy to market.

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SUPPLIER OF MATERIALS NEEDED

Supplier of Paraffin Wax

Supplier Address Item

Esperma Candle McArthur Highway San Jose, City Paraffin Wax

of San Fernando

Supplier of Lemongrass

Supplier Address Item

Johnson Morgan Manila Lemongrass

Plantation

Supplier of Candle Wick

Supplier Address Item

Esperma Candle McArthur Highway San Jose, City Candle Wick

of San Fernando

MARKET STRATEGIES

Our product Culex: Mosquito Repellant Lemongrass Candle will be

promoted by means of using fliers, posters, and a door-to-door advertisement in

every household.

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CHAPTER IV: TECHNICAL STUDY

A. MATERIALS NEEDED

 Raw materials

1. Lemongrass

2. Paraffin Wax

3. Candle Wick

 Equipments

1. China Molder Machine

2. Wax Melter Machine

3. Lemongrass Extractor

4. Packaging Machine

B. PRODUCT PROCEDURE

 Extract the lemongrass in the Lemongrass Extractor.

 Melt the paraffin wax in the Wax Melter Machine.

 Mix together the extracted lemongrass and melted paraffin

wax in the China Molder Machine.

 Wait until the mixture become solid.

 When the mixture become solid, cut the excess candle wick.

 Remove the finished product, and put the six pieces of

candle in the Packaging Machine for plastic covering.

 Put the packaged candle in the box

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CHAPTER V: FINANCIAL STATEMENT

Biosol Corporation

Statement of Financial Position

Year Ended December 31, 2017

ASSETS

Current Assets: Note

Cash and cash equivalent (1) 500,000

Trade and other receivables (2) 550,000

Inventories (3) 900,000

Prepaid expenses (4) 50,000

Total Current Assets 2,000,000

Noncurrent Assets:

Property, Plant and equipment (5) 5,000,000

Long-term investments (6) 5,000,000

Intangible assets (7) 2,000,000

Total Noncurrent Asset 12,000,000

Total Assets P 14,000,000

SHARE HOLDER EQUITY & LIABILITIES

Current Liabilities:

Trade and other payables (8) 800,000

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Note payable-short term debt 650,000

Warranty liability 80,000

Total Current Liabilities 1,530,000

Noncurrent liabilities

Note payable- due July 1, 2019 670,000

Deferred Tax Liability 130,000

Total noncurrent liability 800,000

Shareholder’s Equity

Share Capital, P100 par 5,000,000

Reserves (9) 3,000,000

Retained Earnings 3,670,000

Total stock Holder Equity 11,670,000

Total Stock holder Equity & Liabilities P 14, 000,000

Note 1-Cash and cash equivalent

Cash on hand 40,000

Cash in bank 450,000

Petty Cash fund 10,000

Total Cash and cash equivalent 500,000

Note 2-Trade and other receivables

Accounts receivable 480,000

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Allowance for doubtful accounts (30,000)

Notes Receivable 100,000

Total Trade and other receivables 550,000

Note 3-Inventories

Finished Goods 300,000

Goods in Process 400,000

Raw Materials 150,000

Manufacturing Supplies 50,000

Total Inventories 900,000

Note 4-Prepaid expenses

Office supplies unused 30,000

Prepaid insurance 20,000

Total Prepaid Expense 50,000

Note 5-Property, Plant and equipment

Land 1,500,000

Building 4,500,000

Machinery and equipment 1,000,000

Furniture and fixtures 300,000

Patents, molds, dies and tools, net 100,000

Total 7,400,000

Accumulated depreciation (2,400,000)

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Carrying amount 5,000,000

Accumulated depreciation:

Building 1,900,000

Machinery and equipment 350,000

Furniture and fixtures 150,000

Total Accumulated depreciation 2,400,000

Note 6-Long-term investments

Plant expansion fund 2,000,000

Financial assets at amortized cost 3,000,000

Total Long-term investments 5,000,000

Note 7-Intangible assets

Patent 500,000

Trademark 1,500,000

Total Intangible assets 2,000,000

Note 8-Trade and other payables

Accounts payable 350,000

Notes payable 200,000

Income tax payable 70,000

Dividends payable 100,000

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Accrued expenses 80,000

Total Trade and other payables 800,000

Note 9-Reserves

Share premium 2,000,000

Retained earnings appropriated for

Contingencies 1,000,000

Total reserves 3,000,000

Biosol Corporation

Projected Income Statement

Year 1 Year 2 Year 3 Year 4 Year 5


Sales 400 000.00 528 000.00 696 960.00 919 987.20 1 214 383.10
Cost of goods sold 244 440.00 313 896.00 404 236.80 510 592.70 643 623.40
Gross Profit 155 560.00 214 104.00 292 723.20 409 394.30 570 760.60
Gross Margin 38.89% 40.55% 42% 44.5% 47%
Operating Expenses 187 523.00 180 554.00 198 457.00 210 321.00 253 991.00
Net Income before tax (31 963.00) 33 550.00 94 266.20 199 073.30 316 769.60
Income Tax Expense 9 588.90 10 100.00 28 279.86 59 721.99 95 330.88
Net Income after tax (41 551.90) 23 450.00 65 986.34 139 351.31 221 738.72

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Biosol Corporation

Payroll Slip

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