CHAPTER I

EXECUTIVE SUMMARY

Massage therapy is recognized as one of the oldest methods of healing, with

references in ancient medical text. Massage is generally considered part of
complementary and alternative medicine. It's increasingly being offered along with
standard treatment for a wide range of medical conditions and situations.
Massage is no longer available only through luxury spas and upscale health clubs.
Today, massage therapy is offered in businesses, clinics, hospitals and even airports.
Studies of the benefits of massage demonstrate that it is an effective treatment for
reducing stress, pain and muscle tension.
Beyond the benefits for specific conditions or diseases, some people enjoy
massage because it often involves caring, comfort, a sense of empowerment and creating
deep connections with their massage therapist.

Company Summary

Pampered Massage is a new destination offering customers a unique combination

of massage services in one beautifully serene setting. Pampered Massage will offer
specialized ranges of therapeutic massage services. The goal and promise of Pampered
Massage can be summed up in its name and slogan: “Pampered Massage – Pamper
Yourself, Invigorate Your Life!”

Pampered Massage aims to be the premier massage in the City of Tacurong and
nearby municipalities. Through a unique combination of offered services, they will
quickly gain market share. Pampered Massage will provide customers with a relaxing,
rejuvenating atmosphere where all of their mind and body needs can be met. The business
will be set up as a partnership with Ms. Alodie D. Asuncion, Mr. Adonis Elevazo and Ms.
Maefil G. Castaneda owning equal portions of the operation.
Products and Services

Pampered Massage offers a wide variety of mind and body healing services. The
massage business is devoted to providing holistic methods of massage, body work, and
energy work. This is all done in a relaxing, serene setting.

Location

Pampered Massage has chosen Tacurong City as its location for the business venture.
Tacurong, dubbed as the city of goodwill, is located at the center of Central Mindanao. It
is 92 kms. from General Santos City, 96 kms. from Cotabato City and 178 kms. from
Davao City. It is situated at the crossroads of the Davao-Gen. Santos-Cotabato highways,
and is the population, financial, commercial, educational, and wellness and recreation
center of the area. It services the needs of fifteen (15) neighboring municipalities. People
from these areas go to Tacurong to sell their products, purchase their needs, pursue
education, avail of medical and health services, or seek recreation. As an important hub
of the Mindanao transport grid, Tacurong is visited by numerous passengers and
transients on their way to the cities of Davao, Cotabato, Gen. Santos and even Cagayan
De Oro City. (http://en.wikipedia.org/wiki/Tacurong_City)

Tacurong City has one of the most educated populations that loosely correlates to
earning potential, or at least indicates a higher average household income. Additionally,
the downtown area has undergone a recent renovation that has attracted a lot of new
businesses as well as become a hot urban area.

Competitive Edge

The services offered by Pampered Massage as instrument in relaxation and wellness

is very popular especially to students, professionals, and the general public.

Knowing the fact that there is existing massage businesses in the province,
specifically in Tacurong, the researchers decided to propose this project to provide the
needs of the people here in Tacurong and its neighboring towns in terms of access to
affordable and quality massage services to the public in legal ways.

Pampered Massage's competitive edge is its unique combination of services, location,

and customer-centric focus. Both the extraordinary services and location has been
detailed previously. Pampered Massage has set out since its inception is to provide
quality, dependable services. Pampered Massage has an innovative training program that
is extensive in its depth, properly training employees to provide an unprecedented level
of customer service. All customers will leave Pampered Massage with a feeling that their
needs were met well beyond any expectations that they previously had and far better than
any competitor.

This customer-centric business model is not just rhetoric; there are financial
incentives in place for employees to offer unprecedented levels of service. Pampered
Massage is an exciting business that provides a combination of sought after services that
are not currently offered by a direct competitor. Pampered Massage will provide a
relaxing, serene setting for a variety of mind and body rejuvenation services for the
booming population. This will ensure a high rate of return customers, allowing Pampered
Massage to meet their ambitious goal in becoming a premiere massage in the city of
Tacurong.

Financials

Pampered Massage has forecasted substantial sales revenues by year two. Also by
year two the business will reach profitability and have achieved a healthy profit before
taxes.

Objectives

The objectives for Pampered Massage are outlined below:

1. To offer quality massage services at a competitive price.

2. To offer services that will give importance to the consumer.
 3. To ensure the value of massage business in terms of quality and price and have
clientele return rate of 90%.
4. To generate substantial sales revenue.
5. To become an established community destination for massage services in
Tacurong city and nearby municipalities.

Mission

Pampered Massage will provide a comforting, yet stimulating, atmosphere in

which customers will be able to relax both their body and mind, reconnecting their
daily lives to their true purpose through a wide range of holistic methods of massage
services. Pampered Massage will establish itself as a dependable destination to which
they can always come to escape the stresses of life, and rejuvenate their energies,
their souls, and their lives.

Keys to Success

1. Quality management and skilled employees familiar with massage work and
oriented to a soothing spiritual disposition.
2. Establish trust within the community that each customer's needs will be taken care
of during every visit.
3. Definitely accessible location.
4. Effective promotion.

Company Ownership
 PARTNERSHIP is a business organization formed by Pampered Massage. Each partner
will contribute money, knowledge and personal services to the partnership. Alodie
D. Asuncion will be the Manager, Adonis M. Elevazo will be the Assistant Manager
and Maefil G. Castaneda will be the Cashier/Bookkeeper. The remaining position
will be occupied through hiring. Capital contributions of each partner are indicated
below:

Alodie D. Asuncion Php 121, 652.73

Adonis M. Elevazo 121, 652.73

Maefil G. Castaneda 121, 652.73

Total Contribution Php 270, 000.00

Organizational Structure

The figure below presents the position given to every member of the Pampered
Massage business. It determines their specific job on the centralization of the business to
know the member of personnel in the organization.

MANAGER/OWNER

ASSISTANT MANAGER

CASHIER/BOOKKEEPER

Massage Massage Massage Massage Massage

Therapist 1 Therapist 2 Therapist 3 Therapist 4 Therapist 5
Figure 1. Organizational Chart of Pampered Massage
Personnel Requirements

Pampered Massage needs at least eight (8) personnel in order for the business to
operate.

Job Description

Manager - one who is responsible for planning and directing the work of a group of
individuals, monitoring their work, and taking corrective action when necessary.

Assistant Manager – one who assists manager by performing related duties.

Bookkeeper - one who is in charge of keeping a systematic record of business transaction

and determine profit or losses.

Cashier - one who is in charge for receiving payment from customers and responsible for
paying out money and keeping financial records.

Massage Therapists - one who is in charge in skillful massage services to customers, with
a relatively practical understanding of the theoretical principles.

Qualification Standards

Pampered Massage requires the following:

a. Manager

Knowledge, Skills and Experience:

1. Male/Female

2. Bachelor’s Degree holder (in a business related course)

3. 20-30 years of age

4. Preferred with 2-3 years of related experience

 5. Must possess excellent management abilities

6. Must have exceptional leadership competencies in creating environments

where employees are excited and engaged to deliver optimum
performance

7. Performing a variety of duties, often changing from one task to another of

different nature

8. Broad critical thinking skills and is a reflection leader

b. Assistant Manager

Knowledge, skills and Experience:

1. Bachelor’s Degree holder (in a business related course)

2. 20-30 years of age

3. Preferred with 2-3 years of related experience

4. Must possess high sense of responsibility

5. A multitasked and have excellent people skills.

6. Should posses business knowledge

7. If possible, must be a resident of Tacurong City, Sultan Kudarat

c. Bookkeeper

Knowledge, Skills and Experience:

1. Male/Female

2. Bachelor’s Degree holder (in a business related course)

3. 20-30 years of age

 4. Preferred with at least 1 year of related experience in bookkeeping or other
related fields

5. Performance consistently exceeds the owner’s expectation

6. Honest

7. Must be a resident of Tacurong City, Sultan Kudarat

d. Cashier

Knowledge, Skills and Experience:

1. Male/Female

2. Vocational or Bachelor Degree holder (in a business related

course)

3. 20-25 years of age

4. With pleasing personality

5. Performance consistently exceeds the owner’s expectation

6. Detail oriented and honest

7. Broad critical thinking skills

8. Must be a resident of Tacurong City, Sultan Kudarat

e. Massage Therapists

Knowledge, Skills and Experience

1. Male/Female

2. 18-35 years of age

 3. Demonstrated overall breadth and variety of massage
expertise

4. With pleasing personality

5. Working knowledge of good interpersonal skills

6. Excellent time management, communication (oral and

written), presentation, and organizational skills
7. Must have a National Certificate 2 conducted by TESDA
specialized in Massage Therapy
8. Must be a resident of Tacurong City, Sultan Kudarat

Salaries and Benefits

Table__ Salaries of Pampered Massage Employees by position

Sources: Section 3. The New Daily Minimum Wage Rates, Wage Order No. RB XII-
16(With implementing rules with supplemental determination of other statutory benefits)
Table _____ Benefits of Pampered Massage Employees by position

SSS Phil. Health

Monthly Yearly Monthly Yearly
Manager 500.00 6,000.00 50.00 600.00
Bookkeeper 312.00 3,744.00 50.00 600.00
Masseur 312.00 3,744.00 50.00 600.00
Cashier 312.00 3,744.00 50.00 600.00
Totals 1,748.00 20,976.00 250.00 3,000.00

Sources: Social Security System (SSS), Tacurong City, Sultan Kudarat and Phil Health
Office, Isulan, Sultan Kudarat.

Hiring of Personnel
Pampered Massage will post information on the strategic places in City of
Tacurong like Kimsan Plaza, Tacurong Fitmart and different strategic places regarding
the vacant positions. Persons willing to apply the vacant positions should follow the
hiring flow chart.

Figure ___ Pampered Massage Hiring Flow Chart

Start-up Summary

Table ____ Start-up Funding

Other Current Assets purchased at start-up are as follows:
Unit Quantity Acquisition
Price Cost
Furniture & Equipment
Massage bed 5,000 4 20,000
dimmer light 500 4 2,000
small table locker 1700 4 6,800
mini high-fi system 39,999 1 39,999
Vacuum cleaner 3,798 1 3,798
sofa 22,000 1 22,000
aircon 30,898 5 154,490
printer 7,549 1 7,549
cellphone 4,999 1 4,999
calculator 2,000 1 2,000
mono block chair 340 5 1,700

265,335
Start-up requirements
Start-up Expenses
permit and lisenses 22,009.00
Utilities and instalation 8,049

Household Improvements 30,000.00

rent 6,500.00
Advertising and promotion 2,000.00
Total Start-up Expenses 68,558.00
Start-up Assets
Cash required 0
start-up inventory
Materials Inventory 8,979.18
Supplies Inventory 21,216.00
Cleaning Material Inventory 870.00
other current asset 265,335.00
Total Assets 296,400.18
Total requirements

Start-up funding
Start-up Expenses to fund 68,558.00
Start-up Assets to Fund 296,400.18
Total Funding Required 364,958.18

Assets
Non-cash Assets from start-up 296,400.18
Cash requirements from start-up 68,558
Additional Cash Raised 0
Total Assets 364,958.18

Liabilities and Capital

Liabilities
Current Borrowing 0
Long-term Liabilities 0
Accounts Payable (outsatnding bills) 0
 ACTIVITIES Month
1 2 3 4 5 6 7 8 9 10 11 12
Form of partnership

Business Plan prep.

Site Survey

Processing of Permits
and Licenses
Renovation of the
building
Procurement of
Business Equipment
Hiring of Employees

Orientation of
Employees
Advertisements

Start of Business

Table ____ Pampered Massage Projected Time Table

Company Locations and Facilities

The target site for Pampered Massage is in Door F and G, Notre Dame of of
Tacurong Centrum, Lapu-lapu Street, Tacurong City. Pampered Massage building will
need at least ___________square feet (sq. ft.) of space.
 This will be rented and renovated. Contact has been made with the owner,
_______________.

Location map and Floor plan

SERVICES

Pampered Massage will provide customers with therapeutic and relaxation massage
services. Explanations and/or consultations will be provided on all services and products
if needed.

Product and Service Description

Massage Therapy

Swedish massage - This deep-tissue massage rubs muscles against each other and against
bone, always in the direction of blood flow to the heart.
Benefits: Reduces recovery time for injured muscles, increases circulation and
flushes out lactic and uric acids. It also keeps ligaments and tendons supple.
Why you need it: If you have chronic muscle fatigue, or if your lifestyle demands
intense physical work, Swedish is the best medicine.
Thai body massage - Also known as "yoga for the lazy," Thai massage is more like a
passive stretching session, wherein the practitioner moves, loosens and stretches joints,
starting at the feet and moving up.
Benefits: Thai massage therapists claim that it harmonizes the body to loosen
blocks and restores balance to "energy lines."
Why you need it: It improves flexibility, and stimulates overall health and well-
being. Good for people who spend most of their time on a chair.
Shiatsu massage - Shiatsu focuses on pressure points, but combines it with the
rotation and stretching of joints to unblock channels of energy.
Benefits: Shiatsu relieves uncomfortable conditions like headaches, back pain,
asthma, stiffness, and depression, all while restoring a natural balance to the
system.
 Why you need it: As one of the most popular massages, the effects of Shiatsu are
proven. It's a must for the hectic, modern-day worker.
Back massage - Back pain happens to almost everyone at some point. In fact, when
looking for information on massage, more people search for "back massage" than for
shoulders, knees, hands, neck or any other part of the body.
Benefits: - can relieve pain, anxiety, and stress, relax muscles, and contribute to
their general sense of well-being.
Why you need it: Massage improves blood circulation, which aids in recovery of
muscle soreness from physical activity. Massage relaxes muscles for an improved
range of motion. The muscle relaxation also helps with insomnia.
Foot massage – Our feet bear the load of our entire body throughout our lives. Whether
walking, running, or playing, our feet support us and withstand all the strain of having to
support our entire body weight.
Benefits: A foot massage relieves pain in the feet. It can relieve tiredness and
stress and induce a deep relaxation. If course, the best reason for a foot massage is
that it simply feels divine.
Why you need it: The foot is also supposed to contain pressure points that affect
the various organs of the body, and a foot massage stimulates these pressure
points, thereby improving the function of all your organs.
Head massage – Stress related headaches are on the rise, and most of us have learnt to
accept this pain as a daily part of our lives. Fortunately, help is at hand in the form of
head massage.
Benefits: Other than relieving stress, head massage is also good for curing
insomnia, fatigue, headaches, sinusitis, and migraines. It increases flexibility in
the neck and shoulders and improves the flow of blood throughout the entire
scalp. It also provides relief to tired facial muscles.
Why you need it: Anyone who has undergone a head massage will testify that it is
one of the most relaxing forms of massage. At the end of a massage session you
will feel totally relaxed and de-stressed.
BUSINESS PROCESS

Pampered Spa Services

Profit Customers

The “Pampered Massage” will provide the services to the customers, and
the customer will give income or profit to Pampered Massage in return. The
income or profit will be utilized to improve the services offered and the remaining
amount will be shared by the partners.

Table ____ Pampered Spa Time Schedule

Two shifts 8:00 am to 4:00 pm and 4:00 pm to 10:00 pm
Opening Closing Operating hours
Monday 8:00 AM 10:00 PM 16
Tuesday 8:00 AM 10:00 PM 16
Wednesday 8:00 AM 10:00 PM 16
Thursday 8:00 AM 10:00 PM 16
Friday 8:00 AM 10:00 PM 16
Saturday 8:00 AM 10:00 PM 16
Sunday 8:00 AM 10:00 PM 16
Total Operating Hours per week 112

Competitive Comparison

There are several massage businesses in Tacurong City which serves as direct
competitors. There are many places offering parlors and spa which are not massage
venture which serve as the indirect competitors.
 CHAPTER IV

MARKET

Nature of Business and Market Analysis Summary

There are several competitors of Pampered massage in Tacurong city. These are
Southern Health and Beauty Spa for men and women, Body Rest Spa, Tacurong
Massage Clinic and Joan Massage Clinic. But by the nature of the service Pampered
Massage will provide, success will be readily achieved Pampered Massage applies the
modern concept of technology for the advancement of knowledge, which will recognize
as a universal standard in the service of clients.
The businesses will focus primarily on the specified cluster of clients. Those who
want to have quality and affordable massage services and access on newest massage
services that are available for their benefit.
The business will be product and service oriented which will focus on the group
of customers, who, the researchers believed are the one who would gain access and
benefits to the product and services to be offered by Pampered Massage. Thusly, our
target market segment will be male and female professionals, students, professionals,
and general public.
Analysis of Supply and Demand
Table ___ Spa/Massage Historical Demand and Supply

Spa (Actual Customer)

Number of Spa and
Year massage businesses Demand Supply
2009 2 2,232 2,160
2010 3 3,168 3,096
2011 3 3,936 3,576
2012 3 4,320 3,984
2013 4 5,016 4,800
Sources: Department of Trade and Industry, and registered Spa.
Projected Demand
Arithmetic Straight line Method in projecting the demand for the next five years
 Yc= a + Yi-1 Yc= Initial Values
Yn= Final Value
Yi-1= Value for Past Years
Where: a= Yn-Yc
N-1

Computation:
SERVICES:
a= Yn-Yc
N-1
a=5,016-2,232
5-1
= 696

2015= 696+5,016= 5,712

2016= 696+5,712= 6,408
2017= 696+6,408= 7,104
2018= 696+7,104= 7,800
2019= 696+7,800= 8,496

Table ___ Pampered Massage Services Projected Demand for Five Years
PROJECTED DEMAND for FIVE YEARS
Year Product
(Actual Customer)
2015 5,712
2016 6,408
2017 7,104
2018 7,800
2019 8,496

Projected Supply
Arithmetic Straight line Method in projecting the supply for the next five years
 Yc= a + Yi-1 Yc= Initial Values
Yn= Final Value
Yi-1= Value for Past Years
Where: a= Yn-Yc
N-1

Computation:
SERVICES:

a= Yn-Yc
N-1
a=4,800-2,160
5-1
= 660

2015= 660+4,800= 5,460

2016= 660+5,460= 6,120
2017= 660+6,120= 6,780
2018= 660+6,780= 7,440
2019= 660+7,440= 8,100

Table ____ Pampered Massage Services Projected Supply for Five Years
PROJECTED SUPPLY for FIVE YEARS
Year Services
(Actual
Customer)
 2015 5,460
2016 6,120
2017 6,780
2018 7,440
2019 8,100
Table ___ Demand and Supply based on percentage.
Year Percentage Demand Percentage Supply
Services Services
2015 16.08 16.10
2016 18.04 18.05
2017 20 20
2018 21.96 21.94
2019 23.92 23.89
100% 100%

Figure ___ Graphical presentation of Pampered Massage Services Projected

Demand and Supply

Target Market
Target Market of the Pampered Massage
 Figure ___Target Market of Pampered Massage based on percentage

The large professional population will become an important part of the

Pampered Massage customer base. The student population continues to grow with
the success of the educational pursuits. Access to the Spa services, wellness, and
the upscale ambiance will attract the students. The General public is growing
rapidly with the addition of new companies day by day.
Pampered Massage will provide an opportunity to locals to enjoy massage
services; this will also be an attracting business for the middle income group and
for the residents because they will be able to afford reasonable price.

Table ____ Market Gap of Demand and Supply in Services

Year Projected Demand Projected Supply Market Gap
(Actual Customer) (Actual Customer) (Actual Customer)
Services Services Services
2015 5,712 5,460 252
2016 6,408 6,120 288
2017 7,104 6,780 324
2018 7,800 7,440 360
2019 8,496 8,100 396
Table ___ Market Share of Pampered Massage
Year Market Share Equivalent
(Actual Customer)
Services Services
2015 65% 164
2016 67% 193
2017 70.5% 228
2018 74% 266
2019 77% 305
 Since there are existing massages business that are offering same product
and services offered in Tacurong City, Pampered Massage will join the market
and will have a projected market share for five years, for the product 65%, 67%,
70.5%, 74%, 77% for the services 62.5%,65%, 67%,, 70.5%, 73% , respectively
considering the existence of competitors.

Sales Literature

Services brochure, logo/slogan with advertising to be included, and a planned

website.

Fulfillment

Pampered Massage services sell themselves as a natural way to rejuvenate one's

life.

Technology

Pampered Massage will apply massage techniques of the latest scientific knowing
for affecting the desired results for body and mind relaxation and energetic balancing.

Future Products and Services

Pampered Massage will always remain involved with the best spa relaxation
techniques offered, and will implement them if deemed appropriate and feasible for
Pampered Massage clientele.

Market Needs

People love to pamper themselves, especially people who have achieved a

modicum level of professional success. Tacurong City has become a bastion for the
successful, having consistently been named as one of the best cities in Region XIII,
specifically in Sultan Kudarat to live and to do business in recent times. This has created
a community of wealth, mobility, and growth. Tacurong City has also successfully
implemented a refurbishing plan making it one of the most popular destinations in the
whole Region.

Market Trends

With the refurbishment of Tacurong City and its continual development of

infrastructure, this area will only become more popular.

Market Growth

Tacurong City Council meetings concerning growth, the continuing refurbishment

of city infrastructure and socio-economic programs is a top priority, along with a
complete overhaul of the mass transit system. The refurbishment plan continues, and
Tacurong City is now populated with more destinations than ever, with the plan growing
evens more businesses. The future looks very promising for a thriving City with a
continual presence of customers.

Business Participants

Industry participants are those whose services include spa and massage offerings.
These spa and massage services concern body relaxing and rejuvenating offerings such as
massage, and nail and face works.

Competition and Buying Patterns

Customers choose massage services based on proximity to their daily travels from
home and work, reputation for quality, and good pricing. With our combined services, we
expect to compete mainly against other combination massage services.

Strategy and Implementation

1. Emphasize quality, originality, and dependability of service. We will differentiate

ourselves from our competitors by offering a staff of practitioners who are not
only certified in their professions, but will be trained in understanding the
 dynamics of individual energy systems so as to maximize the connection to their
client and more easily meet the needs of the client.
2. We will provide a unique atmosphere. From the name to the ambience of our
salon, Pampered Massage will distinguish itself as a completely trustworthy and
soothing setting where customers can enjoy being pampered and escape the stress
of their everyday lives.
3. Build a community relationship-oriented business. We will focus on strengthening
the trust of our customer base, and providing not only services, but information
that will aid everyone in the progression of obtaining a balanced and healthy
lifestyle.

Value Proposition

Our value proposition is that we will bring a unique mode of relaxation and
fulfillment to our community. When people are relaxed, comfortable, and happy, they
have the ability to work harder, concentrate better, feel physically, emotionally, and
mentally balanced, and give that happiness back into their homes, workplaces, and
community. Simply put, our value proposition is that we help our community become a
better place to live and work.

Competitive Edge

Our competitive edge is a combination of our unique services, outstanding

location, and our interaction with customers. By providing our customers a holistic and
integrative spa and salon, we build relationships of trust and satisfaction. Our customers
will come to depend on our unique services and fulfilling environment.

SWOT Analysis

The SWOT analysis provides an opportunity to examine the internal strengths and
weaknesses Pampered Massage must address. It also allows examining the opportunities
presented to Pampered Massage as well as potential threats. Pampered Massage has a
useful inventory of strengths that will help succeed.
Strengths

1. Knowledgeable and friendly staff – Pampered Massage gone to great

lengths to find people with a passion for service. Pampered Massage
staff is both knowledgeable and eager to satisfy clients’ needs for great
massage.
2. Modern and unique massage services– Part of the Pampered Massage
experience includes access to modern and unique massage services.
3. Up-scale ambiance – When customer will enter the Pampered Massage
vicinity or even just sit at the area, they will feel good experiencing the
relaxing ambiance. Great backgrounds, nice lighting that sets the mood
and the whole area will be clean clean.
4. Clear vision of the market need – Pampered Massage knows what it takes
to build an upscale Pampered Massage. Pampered Massage knows the
customers, the techniques, and how to build the service that will bring the
two together.

Weaknesses
1. Dependence on slowly changing trends – Pampered Massage is a place
for people to experience the warmth and joy of relaxation. The techniques
that is of today’s trend. Product lifecycles are measured in years and may
seem to never change at all. Pampered Massage needs to innovate its
services to continuously offer new and fresh services.
2. Cost factor associated with keeping state-of-the-art facilities – Keeping up
with the technology and facilities is an expensive undertaking. Pampered
Massage needs to balance technology needs with the other needs of the
business. One aspect of the business cannot be sacrificed for the other.

Opportunities
1. Growing population of massage consumers – The importance of the
relaxation in today’s complex and tiresome lifestyle is a must. As the
population of massage services increases, so will the need for the services
Pampered Massage offers.
 2. Exit of Competitor in the market – The exit of a competitor in the market
clearly means opportunity for Pampered Massage. Thus, Pampered
Massage will grab the chance to get the customers by initiating further
promotional activity.

Threats
1. Rapidly increasing cost of materials – The cost of inputs determines
profitability. Massage services access may become so high that nobody
will be willing to pay for access in it. Pampered Massage is aware of this
threat and will closely monitor pricing.
2. Rising local competitors – Currently, Pampered Massage is enjoying a
first- mover innovative advantage in the local massage market. However,
additional competitors are on the horizon, and it need to be prepared for
their entry in the market. Many of Pampered Massage programs will be
designed to build customers loyalty, and it is Pampered Massage that can
only offer quality service and up-scale ambiance will not be easily
duplicated.

Marketing Strategy

Our marketing strategy is the key to our success:

1. Emphasize our name and unique services through advertising.

2. Focus on the convenience of our location.
3. Build community relationships through unique and quality service, friendly and
caring atmosphere, and establishing absolute dependability of our services.

Promotion Strategy

Our promotional strategy will be two-fold: first phase promotion will deal with
advertising before, during, and six months following our opening; the second phase
advertising will deal with all long-term advertising.

1. FIRST PHASE PROMOTIONS

A. Advertising

We will utilize local newspaper, local radio, Social mail-outs to all households
within the immediate five mile radius, and mail-outs to all local business within a
five-mile radius.

B. Internet

We will have comprehensive social networks in Facebook, Twitter and Instagram.

C. Alliances

We will place our brochures within the offices of our known companies.

2. SECOND PHASE PROMOTIONS

A. Advertising

We will continue to place ads in the local radio. Mail-outs will be done again
within a five-mile radius one year later after opening, then again only every three to
five years. Radio ads will be given emphasis in our sales promotions during the most
stressful times of the year for the Christmas season, and graduation.

B. Internet

We will continue to have a comprehensive social networking appearance. After

the first six months, and certainly after the first year, we will evaluate the viability of
having target clients advertise on our site, and conversely, we will evaluate viability
of advertising on our target clients’ websites (if applicable).

C. Alliances
 This type of advertising will be implemented once we have grown beyond our
break-even point. We will also form advertising alliances with any business with
whom we share common business goals. We will also implement mutual perks with
our business and restaurant neighbors which will aid in local visibility. Advertising
promotions with certain restaurants will also be considered.

Marketing Programs

The Owners will be responsible for marketing Pampered Massage through the
advertising channels. The general manager will be responsible for assisting with the
implementation of alliance advertising partnerships. Our advertising budget is
php10,000 for the first year. Advertising will begin one week prior to opening.

Positioning Statement

We will automatically position ourselves as one of the top massage business in the
City of Tacurong. Considering that none of the other competitors will offer the range
of services we will, or that their staffs will be trained like ours, and that there are not
any spas of our type in our target locations, we will be able to provide services to a
portion of Tacurong city populace not currently being tapped.

Pricing Strategy

Our pricing strategy will be similar to that of our competitors. We will not charge
over, or substantially under, standard prices for our services. We will be paying our
employees a higher straight percentage of their total individual customer sales than
our competitors. This will allow us to hire the best employees, and have a built-in
motivational factor that will keep them working hard and happily.

Sales Strategy

1. Our umbrella sales strategy is to sell Pampered Massage to public consumers as a

uniquely desirable destination that will enhance their lives.
 2. We will sell Pampered Massage through each employee's skill, courtesy, and
warmth, creating a trusting impression on all customers, thusly establishing
loyalty and return. We will ensure each visit to Pampered Massage is a relaxing
and memorable experience, so that customers can always depend on our brand of
service when they arrive.

Sales Forecast

The important elements of the Sales Forecast are shown in the chart and table
below. Initial sales forecasts indicate vigorous first year sales, almost doubling by
the end of second year, then leveling out somewhat by the end of third year. These
figures are based only on revenue from minimum average estimates from spa
massages only, with sales cost reflective of the 60% commission earnings to each
therapist.

Sales Programs

1. Our comprehensive brochure will explain the holistic nature of our services, and
how this benefits the customer.
2. Our Facebook, twitter and instagram pages will be comprehensively informative
of our services and their benefits.

Strategic Alliances

We will form alliances with local restaurants, offices, and businesses that will be
strategically beneficial for generating new customers.

Management Summary

The management philosophy of Pampered Massage is based on respect for each

of our fellow employees, respect for every customer, and individual responsibility.
Pampered Massage success is dependent on the warmth and uniqueness of its
atmosphere which is generated by a fun-loving and caring employee. The
management team will consist of the owner, general manager, and assistant manager
 (if deemed necessary). We will hire only those whom demonstrate the qualities
necessary for working in a nurturing environment, and the willingness to move
forward in study of energetic principals if not already so trained. We will be hiring the
ultimate "people persons."

Financial Plan

The premier element in our financial plan is initiating, maintaining, and

improving the factors that create, stabilize, and increase our cash flow:

1. We must create visibility so as to create customer flow.

2. We must maintain a dependable, happy employee force so as to minimize
turnover.
3. Create a brisk turnaround on our retail and art products, always maintaining
viable stock levels.

Important Assumptions

The key underlying assumptions of our financial plan shown in the following
general assumptions table are:

1. We assume access to equity capital and financing to support our financial plan.
2. We assume our financial progress based on realistic sales to minimum sales
against highest expenses.
3. We assume there will not be an economic crash that would greatly hinder our
target market's access to their personal luxury funds.

Key Financial Indicators

Our most important Key Financial Indicator is when each massage therapist
averages three customers per day.

Projected Profit and Loss

 There are two important assumptions with our Projected Profit and Loss
statement:

1. We expect to have to pay out from the Draw Fund occasionally.

2. Our revenue is based on minimum estimated averages against highest expense
expectations.

BUSINESS LOCATION (sample)

Figure 4.2 Pampered Spa Vicinity Map

Figure 4.3 Pampered Spa Floor Plan

Building and Facilities

Description Monthly Bill
Rent (60 SQM ) Php. 25,000.00
Leasehold Improvements 30,000.00
Total Building and facility Cost Php. 55,000.00

FURNITURE AND FIXTURES

Table _____ Pampered Massage Furniture and Fixture Cost
Description Quantity Unit Price Total Price
Computer Cabinet 13 Php. 300.00 Php. 3,900.00
Tables 4 400.00 1,600.00
Centralized Air Conditioner 1 60,000.00 60,000.00
Mono block chair 20 230.50 4,610.00
Cabinet for the supplies 2 5,000.00 10,000.00
Pad Lock 3 500.00 1,500.00
Sala set 1 5,000.00 5,000.00
Generator 1 21,347.06 21,347.06
Total Furniture and Fixtures Cost Php 107,957.06
Sources: Kimsan Plaza, Emcor, Gallega Marketing and DJ Glass Tacurong City,
Sultan Kudarat.
 RAW MATERIALS AND SUPPLIES
Table _____ Pampered Massage Raw Materials and Supplies Cost
Description Quantity Unit Price Total Price
Bond Paper
- Long 2 reams Php 150.00 Php 300.00
- Short 2 reams 133.18 283.18
CD w/ Case 5 boxes 48.00 96.00
Ball pen 2 boxes 48.00 96.00
Stapler 2 pieces 30.00 60.00
Printed Ink
- HP 96 (Black) 1 cartridge 500.00 500.00
- HP 97 (Colored) 4 pieces 500.00 500.00
- Ink Refill(Cannon) 4 colors 150.00 600.00
Record Book 2 pieces 25.00 50.00
Fire Extinguisher 10 lbs. 1 set 3,500.00 3,500.00
Personalize Plastic Bag 320 dozen 7.00 2,240.00
Total Raw Materials and Supplies Cost Php 8,979.18
Sources: CDR Ink, Obleada and Kimsan Plaza Tacurong City, Sultan Kudarat.

UTILITIES
Description Installation Cost Monthly Bill
Electricity Php. 1,000.00 Php. 3,000.00
Telephone/Internet 1,750.00 999.00
Water 1,000.00 300.00

Total 3,750.00 4,299.00

INVENTORIES
Table____ Pampered Massage Inventories for opening
Items Quantity AcquisitionPrice Total
Massage oil (pepermint) 5 210 1,050.00
Massage oil (chamomile) 5 210 1,050.00
Massage oil (african) 5 210 1,050.00
Massage oil (lemon grass) 5 300 1,500.00
Massage powder 5 105 525.00
Massage balm 5 265 1,325.00
Massage oil (lavender) 5 210 1,050.00
Throw pillow (b1t1) 4 250 1,250.00
Pillow case 12 50 600.00
Curtain (set) 4 1,440 5,760.00
Hand towel 30 30 900.00
Hand sanitizer 5 199 995.00
Garbage bag 1 91 91.00
Toilet paper 1 340 340.00
Pencil 5 6 30.00
Candle holder 4 500 2,000.00
Laundry detergent 1 1,000 1,000.00
Fabric softener 1 500 500.00
Pens 10 10 100.00
Toilet brush 1 100 100.00
Total Php 21,216.00

For personal computer and laptop/net book/notebook brochure will provide

4.9 Waste Disposal

Pampered Massage can manage the waste disposal properly, because there are
scheduled times from the city environment office in terms of collecting waste / garbage in
the streets and from different agencies in the vicinity of Tacurong City.

Cleaning Materials Useful Life Quantity Unit Price Total

Soft Broom 5 months 2 Php 55.00 Php 110.00
Dust Pan 5 months 2 25.00 50.00
Trash Can 1 year 2 85.00 170.00
Feather Dust 3 months 2 30.00 60.00
Mop 5 months 2 125.00 250.00
Soap 2 months 6 7.00 42.00
Air Freshener 2 months 1 175.00 175.00
Total Waste Disposal Cost Php. 857.00
Any recyclable materials will be processed for recycling.

4.10 LEGAL REQUIREMENTS

 Registration with BIR (Bureau of Internal Revenue)
 Registration of Business Name with DTI (Department of Trade and Industry)
 Barangay Clearance and Business Permit
 Mayor’s Permit
 Software Licenses

Legal Requirements Cost

Barangay Clearance Php 150.00
Environmental Fee 725.00
Mayor’s Fee 500.00
Business Permit Form 167.00
Police Permit 50.00
Application Fee 25.00
Fire Safety 25.00
Fire Department permits 50.00
Zoning Fee 25.00
Sanitary Fee 100.00
Inspection Fee 25.00
BIR 1,000.00
DTI 512.00

Total Legal Requirement Cost Php 22,009.00

Appendix A. Partnership Formation and Dissolution Agreement

Section 1: Formation. Partnership is formed to establish Pampered Massage by Valerie
Monahan, with the intention of dividing asset and liability and share profit and loses
equally. Each partner conforms and works with no conflict of interest.
Section 2: Operation. Pampered massage has a time schedule of shifting 8:00am to
4:00pm and 4:00pm to 10:00pm from Monday to Sunday resulting to total operating
hours per week of 112 hours. It consists of manager, bookkeeper, massage therapists, and
cashier. To make sure that operation will work properly, employees will be oriented and
trained with regards to Pampered Massage objectives.
Section 3: Dissolution. If one of the partners dies, or enters bankruptcy, the partnership
may be dissolved automatically under the terms of its agreement. Whatever the reason, a
clean break will give peace of mind to all of the parties. Win Lu Ballada, CPA, 2009.
Section 4: Winding Up. Each partner will assume assets and liabilities in proportion
with interests in the partnership. Since all partners are capitalist-industrial partner, each
partner gets a share in the profit as an industrial partner and an additional share in
proportion to their capital contributions.
Section 5: liquidation. Each partner shares responsibility for the administrative tasks of
dissolution. Pay a debt and close the business. In result of realization of assets and
liabilities, they will be divided equally to partners.
Section 6: Custodian of Partnership Books. Manager will be responsible for the
partnership’s records after the dissolution.
Section 7: Indemnification. As part of the dissolution, the partners have agreed to split
the assets and the debts of the partnership on a pro rata basis between them. If one party
fails to pay, each will be forced to reimburse its partners for payments they made to cover
that default.
Section 8: Release and Discharge. After the dissolution, neither partner can bring a
claim against the other for partnership-related issues.
Section 9: Amendments. All changes to the agreement must be in writing and signed by
all partners. Hector S. De Leon Jr, CPA, 2010.
Appendix C. INTERVIEW QUESTIONS (Owners of Spa and Massage Business)

PRODUCTION
1. How long you been running your business?
2. What made you choose this kind of business?
3. What particular strategies do you apply? Why?

FINANCIAL
1. How much is the estimated capital investment for this kind of business?
2. How much do you sell your products or services, and what made of pricing
you used?
3. What are the requirements in terms of equipment, production, materials and
other facilities needed, and how much does each cost?
4. How do you compensate your employees? Did you provide training for them?
5. Where do you acquire the equipment used?

ORGANIZATION
1. What is your set-up in terms of running this business?
2. How many personnel do you have? And what tasks are each assigned?
3. How did you hire them?
4. What are your daily plan activities in your business?

MARKETING
1. What is your best of attracting the customers?
2. What distinguished you from the other Spa and Massage and Businesses?
3. How were you able to keep your customers, patronizing your product or
services?