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Enrico C. Rayos
MBA-Entrepreneurship
13-239728

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INTRODUCTION

Entrepreneurship is defined as the capacity and willingness to

develop, organize and manage a business venture along with any of its risks in

order to make profit. In economics, entrepreneurship combined with land,

labor, natural resources and capital can produce profit. Entrepreneurial spirit is

characterized by innovation and risk-taking and is an essential part of a nation’s

ability to succeed in an ever changing and increasingly competitive global

market place. (Business Dictionary, 2019)

How did entrepreneurship emerge to existence? Whenever there is

a need to be addressed, people tend to think of solutions to that “need”. As a

result of a complex process of problem-solving, ideations, and tinkering, people

have found ways to keep up with the needs of the world. Light bulbs made the

darkest of nights go full on bright. Cars and trains have been invented to better

the transportation services. Airplanes made people fly. Facebook made

communications much faster and more interactive. The Internet has stormed

the globe for giving a plethora of services from business transactions, to

entertainment, to research and to shopping among others.

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 While the definition of entrepreneurship remained the same for

decades, the possibilities for aspiring entrepreneurs sky-rocketed in the sense

that there are opportunities wherever we veer our attention. It is the

opportunities that drive entrepreneurs to create new things or develop better

versions of what we currently have for people to try.

Two major perspectives on entrepreneurial opportunities, the

Schumpeterian and Kirznerian views have given us explanations on these

opportunities. There are three major sources of entrepreneurial opportunity and

these are: technological changes, political/regulatory changes and

social/demographic changes. These sources provide the impetus for

entrepreneurial activity.

Entrepreneurial activities do not always take the form of new products

and services. There are also different forms that entrepreneurial activities can

take such as new ways of organizing, new raw materials, new markets and new

production processes.

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 The Schumpeterian view of entrepreneurial opportunities are

disequilibrating or take disruptive innovation as the focus for the opportunities.

It depends upon ne information and are highly innovative, rare and involve

process of creation. On the other hand, Kirznerian opportunities are more

frequently pursued by small ventures and by entrepreneurs who are young,

with a strategic focus on resent needs and who are less innovative in their

behavior. It can also be described as the “me-too” strategy.

However, in this paper, a hybrid of the Schumpeterian and Kirznerian

views are being utilized in the sense that online businesses are booming out of

nowhere day after day. Hence, the entrepreneur is doing an online business.

The innovative part shall take part on the point of differentiation of the business

being proposed with technology playing a big part of the business.

Moreover, the entrepreneur, being an enthusiast of both the Fashion

industry and Digital Marketing & E-commerce at large, opts to integrate the

digital platform to his passion to create a venture that will be profitable and

ultimately create value for the products that he would like to cater to the

market.

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NAME OF THE BUSINESS

The business being proposed shall be known as the HAUS OF

RAYOS which is an online fashion store. The base of operations shall be in

45–A Pulong Kendi Rd., Santa Ana, Taguig City.

VISION:

To become one of the most visited and dominant online shopping

stores in Central NCR Region by 2022.

MISSION:

Haus of Rayos caters its customers quality products that are customized

to their satisfaction and to have a very strong online presence to heighten brand

equity; develops a community whereby creative collaboration is formed through

self-expression in fashion.

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INDUSTRY ANALYSIS

FUTURE OUTLOOK AND TRENDS

According to reports from techinasia.com [Tech in Asia] dated

in December 2018, the Philippine E-commerce shall have great potential

to become a ten billion-dollar ($10B) venture as it nears year 2025. It’s

a 12% increase from the previous year. With the current scenario in the

local market where the big brands in the Fashion industry thrive in various

platforms such as Lazada and Zalora and the individual sellers dominated

third-party carriers such as Shopee and Carousell, Small-Medium

Enterprises (SMEs) that opt to stand on their own has become emergent

and has created their own websites for aesthetic and branding purposes

among others. New online businesses are popping out of the net day after

day as it takes away the constraints that brick-and-mortars have little, if

not completely none, control over such as the inevitable local traffic, lines

upon payment, unavailability of cashless transaction and inventory

management. The online platform serves as a time-saver device both for

the consumer and the enterprise. It also creates lead generation among

the web traffic of the enterprise’s site.

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 VIDEO GAMES FASHION &
12% BEAUTY
10%
DIGITAL MUSIC
1%

ELECTRONICS &
PHYSICAL MEDIA
25%

TRAVEL (INCLUDING
ACCOMMODATION)
30% FOOD & PERSONAL CARE
4%

TOYS, DIY & HOBBIES FURNITURE & APPLIANCES

13% 5%

Moreover, according to reports from Hootsuites from last

2018, there is a 10% market share for the fashion and beauty category

which is equivalent to US$ 207.20 million. Though it was ranked fifth

among eight (8) categories, its contribution to country’s earnings is

remarkable. Also, 12% growth rate is expected in the coming years.

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 It is also worth noting that by the end of 2018, the rate of

male online shopper has surpassed the long stint of female shoppers.

This can be accounted to the emergence of Travel, Toys, Video Games

categories online on top of the Fashion category that an increasing

number of men are considering buying online instead of going to physical

stores.

With the continuous improvements on Technology:

Augmented Reality (AR), Virtual Reality (VR), Artificial Intelligence (AI),

Internet of Things (IoT), Wearable Tech, and Drones among others, new

ways of providing online service are being paved. Uniqlo in 2013 has

introduced the world to their Magic Mirror that captures its customer in

a full-size LED screen and makes them look how they look in various

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garments in the store without even the dirty job of lining up to the fitting

room and taking off and putting on clothes after clothes. H&M in 2018

has partnered with Italian brand Moschino and has created a virtual store

display along a hallow hall but with the aid of virtual glasses, an

augmented reality H&MxMoschino capsule collection is seen with plush

bears flipping around and floating webpage videos are interacting with

the customers.

On the local market, Bench/ Philippines in 2015 has launched

their Custom Bench/ T-shirt where customers can choose what text(s)

shall be printed on the shirt that they opt to buy online. This is another

trend that is being taken a closer look nowadays: Customization amidst

mass production among the retail markets both online and offline. Many

online stores are offering almost the same, if not completely, designs

and styles as they’re products (garments in particular) come from the

same manufacturers. Customers’ trust is being affected by the presence

of same item(s) from different stores therefore the level of confidence

in buying lowers down. However, with the availability of customization,

customers are being given liberty to have garments that they have

styled or designed by themselves. Hence, user experience shall lead to

customer satisfaction.

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ANALYSIS OF COMPETITORS

Having been stated that the business enterprise shall be

focusing on customizable garment pieces, competition with mass-

produced ready-to-wear carriers can be rough. As an entry-level

enterprise, our competitors shall be the SMEs online such as Locals.ph,

iTag Manila, Hoverman Manila, and the like.

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OPERATIONS AND PRODUCTION PLAN

Description of Company’s Operation

The business shall operate both online and offline for it shall be

a hybrid of an e-business and the traditional brick-and-mortar.

Technology shall play a very vast role on the day-to-day transactions

and operations therefore the proprietor shall be very particular on the

internet services, website development, user-friendliness of the

website and mobile optimization for the enterprise.

On the physical counterpart of the business, product quality and

delivery services shall have the most attention for it will pave way to

customer satisfaction –and later, customer loyalty –provided that

optimum services are to be provided. Moreover, stringent return-and-

exchange policies are to be implemented to ensure the protection of

the business from fraudulent buyers whilst providing quality services to

shoppers.

Employees to hired in the business shall also be carefully

selected to ensure that the vision and the mission of the organization

shall be embodied not only through the culture but also through the

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 products and services being handed over the customers and other

stakeholders of Haus of Rayos.

OFFICE EQUIPMENT AND MACHINERY

The following machinery and office equipment shall be

needed for the company to operate on its day-to-day functions:

a. 4 Sewing Machines

1. 2 multi stitch

2. 1 edger/trimmer

3. 1 embroidery

b. Acrylic Patterns

c. Sewing Supplies

d. 3 Desktop Computers

e. Heat Seal Machine

FLOW OF ORDERS FOR GOODS

The flow orders for the goods shall be divided into three (3)

primary processes: Ordering, Manufacturing, and Delivery.

I. Ordering

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For orders to be delivered to customers’ door front,

they will have to follow the listed instructions:

a. Customers can go to the website-to-be

www.hausofrayos.com or download the mobile

application Haus of Rayos.

b. Choose either to shop men’s silhouettes or

women’s silhouettes.

c. Select templates to be customized whether it is a

top, a bottom, or an outerwear.

d. Select the size of the garment to be built from the

app or the site. Standardized international size

chart is to be used for a convenient user

experience.

e. Choose desired fabric for the selected template.

Availability of the fabric shall be subject to the

templates to be chosen.

f. Select the color available for the fabric that was

chosen. In some of the template designs,

customers can select two or more colors.

g. As an option, users can add other details to the

garments being built such as the following:

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 f.1 Zippers

f.2 Buttons

f.3 Tassels

f.4 Lace trims

f.5 Embroidery

f.6 Rubberized Print

h. As customers add on more details on the template,

augmented outcome of the garment shall be shown

on the website or on the mobile application.

i. The user can opt to change and edit any details for

us long as the order hasn’t been added to the

Check Out Form.

j. Once satisfied with the design, add garment to the

Cart.

k. Shop other garments with different designs and

add again to the Cart.

l. Proceed to Check Out and key in the delivery and

billing information.

m. Proceed to Payment Gateway. Customers may opt

to choose different payment methods:

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 m.1 Cash on Delivery

m.2 Debit/Credit Card

m.3 G-Cash

m.4 AliPay

m.5 Money Transfer Services

m.6 Over the Counter Bank Payment

n. Click Done Shopping and order confirmation shall

be sent to customer’s email address.

II. Manufacturing

The production of the garments starts with the

order confirmation. After which, the following

processes take place:

a. Upon collection of confirmed orders via the app and

the website, a 360° horizontal and vertical

rotational view of the garments to be manufactured

is being checked by order-taking personnel.

b. Processed job orders with complete details are

printed together with the front and back photos.

Orders are being collected on an hourly basis.

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 c. Job Orders are then assigned to seamstresses for

production.

d. Patterns are cut onto the fabric using acrylic

templates with each piece cut into a pattern that

are perfectly measured to match the standardized

size chart.

e. Once done, finished garments are to be checked

for quality assurance. Both the quality of the seams

and the closeness of the finished garments to the

printed designs are to be carefully looked at.

f. Defective garments that will not pass quality

standards shall be brought back to the

seamstresses for polishing.

g. Qualified products for delivery are then placed with

the Haus of Rayos tags, pressed and folded before

being packaged in Haus of Rayos reusable zip-lock

bags together with the order details.

h. Orders are stacked ready for delivery.

III. Delivery

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 Upon completing orders, garments are ready for

shipping. The following could be the process in delivering

goods:

a. Order dispatcher will sort items to be delivered

according to the date of order confirmation and

shall be grouped regionally

b. Order details are to be reviewed to ensure that

right packages reach the right destination.

c. Orders are to be delivered to fulfillment partners of

Haus of Rayos.

d. Order tracking system is to be utilized so that

customers will be kept posted on their shipments.

e. Once orders are delivered to customers’ delivery

address delivery confirmation shall be sent to the

customers.

f. Orders are to be delivered seven (7) to fourteen

(14) days from the date of order confirmation.

g. Reverse logistics in cases of wrong delivery

address, wrong items delivered, wrong size of

garments and damaged items shall only be

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 qualified for return and exchange. Customers are

to return the item(s) in the office address.

However, customer shall be the one to spend for

shipping back the item(s).

Technology Utilization

Opportunities in business through the utilization of technology

have emerged since the social media platform among other online

platforms has begun. With the ever-changing and ever-adapting

innovations, business transactions have been easier and customer

satisfaction has been improved.

Fusing technology into Haus of Rayos’ operations, here are the

key initiatives that will greatly contribute to the brand’s operations:

a. Website – as an online business, it is a must to have a

website for the business so that it can capture web traffic

and turn them into page views. Through which, netizens can

see the products to be sold by the Haus of Rayos.

b. Mobile Optimization – though the website is already a

great necessity for e-businesses, it is limited to laptops,

desktop computers and other large-screen devices and will

therefore not suit users who are always mobile. Hence,

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 mobile optimization must be highly considered for such

endeavor.

c. Mobile App – in relation to mobile optimization, mobile

application should also be available for consumers to

download. In this way, user won’t have to search the website

through the browser and wait for it to load. With a mobile

application, customers can easily access the store and shop

right away.

d. Social Media – Facebook, Twitter, Instagram and Youtube

among other social media platforms must also be wisely

utilized as a number of people think that just because they

have a social media page for their business, the internet will

work its way to make their brands popular. Social media

content must be relatable to one’s target audience and shall

drive more web traffic for the brand’s website, more

downloads for its mobile app, more engagements (i.e.: likes,

reactions, shares and comments) on the social networking

site posts and most importantly, more sales for the business.

e. Chatbots – short for chat robots, chatbots can be utilized to

answer frequently asked questions (FAQs) particularly when

the social media correspondents are no longer on duty.

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 Through which, the human factor on answering inquiries is

being lessened and more cost-effective for the enterprise.

f. Augmented Reality (AR) – not like the usual online stores

wherein flat images of the products are being used to show

different angles of the clothes, Haus of Rayos shall use AR

Technology whereby each detail that the customers add on

the garment being built is being added at the click of the

options provided on the website. Moreover, 360° horizontal

and vertical rotational view of the garments shall be added

for optimum product viewing.

g. The Zoom – For online businesses in fashion, zoomability of

the products on the site is very important for the shoppers

will never get to touch nor see the garments that they opt to

buy. In Haus of Rayos products’ case, providing high

resolution photos is not enough since there is an

augmentation on the product being built as the shoppers go

through the process of customizing their clothes.

h. Virtual Tour – Virtual Reality (VR) is another cutting-edge

technology that people are now venturing in. In our case, we

can show our audience how their customized garments are

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 being done in the production unit. This can be done once the

business has grown bigger.

i. Acrylic Templates – there won’t be a need for pattern

papers, tracing chalks and tape measure during the pattern-

making process as acrylic templates are to be commissioned

to a third-party provider so that production of order would

be easier and faster.

j. Digital Marketing and Business Analytics – since Haus

of Rayos shall be operation online, it is only fitting to use

various digital advertising strategies to ensure the flourishing

of the brand online. Also, the use of data analytics hand-in-

hand various digital marketing platforms shall give the

management better view and knowledge of where the

business is currently in and where they would like the

business to be in the coming years.

MARKETING PLAN

MARKET SEGMENTATION

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 The market for online shoppers whose interest is on Fashion and

Beauty has been increasing since the birth of online shopping. With this step-

up, Haus of Rayos would like to capitalize on these market segments:

GEOGRAPHIC:

•Location: Nationwide with emphasis to major cities such as in NCR,

Region IV-A, Cebu and Davao

DEMOGRAPHIC:

•Age: 18-35+ (typically students and young professionals)

•Gender: male and female

•Monthly Income: 20k-40K

PSYCHOGRAPHICS:

•creative people

•customers with much attention to details (in terms of clothing)

BEHAVIOURAL:

•Tech-savvy clientele

•Millennials and gen-z who spend most of their time online

•Online shoppers who opt to customize their shopping experience

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TARGET MARKET

The target market for Haus of Rayos are online shoppers who are

from the Millennial and Gen-Z groups, ages 18 to 35 whose income are

from average to high with much enthusiasm to fashion.

BRAND POSITIONING

Haus of Rayos caters customized shopping experience for online

shoppers who are from the Millennial and Gen-Z groups, ages 18 to 35

with much enthusiasm to fashion through the integration of technology

to fashion design.

As a result, an array of optimal customizable retail garments can

be achieved through mobile devices, laptops and even desktop computers

that can be faster than the fast-fashion trend while keeping the price

relatively competitive and the quality relatively high unlike other mass-

produced ready-to-wear garments from other brands that are seemingly

the same design and have poor quality.

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 SWOT ANALYSIS

A SWOT analysis is also done to dissect the internal and external

environments of the would-be enterprise Haus of Rayos. The SWOT Matrix

that has been formulated thereafter is seen on the following pages.

SWOT MATRIX
STRENGTHS WEAKNESSES
1. Technical know-how of the entrepreneur 1. Impatience of the entrepreneur
about fashion styling and design 2. Inadequate source of funds
2. Leadership skills and passion of the
entrepreneur
3. The entrepreneur having a good list of
netwrok from the fields of modeling,
pageant, fashion, photography, and
technology
4. Exposure of the entrepreneur to
Marketing, Sales & Sevice and Brand (it
being his undergraduate degree and current
profession)
5. Customizability of the products as point
of differentiation from other current
products
OPPORTUNITIES THREATS
1. Fast-growing number of Lifestyle, Fashion 1. Competition in the online business arena of
and Beauty social media influencers the fashion Industry is tight due to the
2. Emergence of Augmented Reality, Virtual presence of mass produced retail garments
Reality and Artificial Intelligence 2. Availability of raw materials particularly the
3. Fast-fashion industry moving forward to fabric in the market might be unpredictable
superfast-fashion depending on the importation of local dealers
4. Increasing volume of shoppers who prefer from foreign suppliers
to go online-shopping 3. Disruptions on the web that may hinder
5. Locally sourced fabric are gaining user-experience on the website
attention from netizens and fashion-savvy 4. Slow internet service in the Philippines
individuals
6. Presence of possible mentors in the fields
of Fashion, Entrepreneurship and Digital
Marketing

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 [SWOT MATRIX CONTINUED]

(S2-O2 | S3-O1) Create groups of vloggers, (W1-O6 | W2-O6) Undergo mentorship

social media influencers, photographers, programs for the benefit of the company
editors and models who will be able to and its stakeholders
promote the brand for a low cost, if not for
free.
(S1-O3 |S6-O4 | S1-O5) Offer garments and
fabrics to the online customers that are
rarely, if not never, been seen in other stores
both online and offline.
(S1-O5) Provide A CSR project through
promoting locally sourced fabric that will
generate employment among ethnic tribes.
(S4-O2) Create ang Augmented Reality
experience for customers to see a rotational
view of what they are designing and styling
before it gets delivered.
(S4-O1) Compete with the fast-fashion trend
through adding more templates for customers
to choose from by means of continuous
product development.
(S3-T2) Build strong relationships with (W2-T1) Manifest an aggressive marketing
suppliers so that Haus of Rayos shall always stunt that will create positive buzz about
have the first pick on raw materials. the brand in the form of viral marketing,
(S4-T1) Create PR campaigns both online video marketing, content marketing, etc.
and offline that will pave way for more
audience to be reached and more web traffic
to generate leads for sales.

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PRODUCT (GOODS & SERVICES) STRATEGY

The primary product of Haus of Rayos would be ready-to-wear

garments templated for customers to customize. The product lines shall

be comprised of tops, bottoms and outerwear for men and women alike.

As part of the company’s services, style and design suggestions are going

to be given to customers while shopping. Chatbots will also be available

for customer to interact with aside from the live chat. Lastly, product

delivery and after-sales services are also to be performed by the

company.

PRODUCT FORECASTS

During the first year of Haus of Rayos, the company will only

cater garments for men and women with three basic categories: tops,

bottoms and outerwear. If sales by the end of the fiscal year will be good

enough to extend the product lines, the management may opt to add

accessories, millineries, leathercraft and footwear.

Product development shall be continued and will be based off on

the current trends depending on the seasons in Fashion.

Furthermore, more fabrics are to be added for customers to choose

from to expand the variance of each garment.

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 PRICING STRATEGY

As an entry-level enterprise in the online business arena where

other fashion stores, whether big or small, are already cannibalizing each

other, Haus of Rayos shall implement a market penetration pricing

strategy which means that products are to be priced relatively close to

that of the popular players in the market. On that note, product prices

will be on the range of PhP 900 to Php 3000 depending on the silhouette

to be purchased and the materials to be used by the customer. Listed

below are the proposed pricing for garments on different fabrics:

SELLING PRICE
GARMENTS FABRIC
(Php)

TOPS

Cotton 999.00

Button Down Shirts (Short Sleeves; Linen 1,299.00

regular collar, mandarin collar, etc.) Lace 1,299.00

Printed 1,299.00

Cotton 1,399.00
Button Down Shirts (Long Sleeves;
Linen 1,699.00
regular collar, mandarin collar, etc.)
Lace 1,699.00

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 Printed 1,699.00

Corduroy 1,699.00

Cotton 999.00

Silk 1,299.00
Cuban Shirts
Linen 1,299.00

Printed 1,299.00

Cotton 999.00

Roundneck/Crewneck/V-neck Shirts Linen 1,199.00

Printed 1,199.00

OUTERWEAR

Denim 1,999.00

Wool 1,999.00
Biker Jacket
Leather 2,999.00

Corduroy 2,499.00

Leather 2,999.00

Bomber Jacket Corduroy 2,499.00

Silk 1,999.00

Cotton 1,499.00
Casual Blazer
Wool 1,999.00

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BOTTOMS

Cotton 1,499.00

Wool 1,799.00
Straight-cut Pants
Corduroy 1,499.00

Denim 1,899.00

Cotton 1,499.00

Chinos Wool 1,799.00

Corduroy 1,499.00

Denim 1,899.00

Joggers Cotton 1,499.00

Wool 1,799.00

Cotton 999.00

Tailored Shorts Wool 1,299.00

Denim 1,299.00

Another pricing strategy to be implemented is the Psychological

Pricing Strategy. As seen on the price table, prices are lowered by Php

1.00 in the presumption that customers will not round off the accumulated

prices. That way, customers might think of buying some more items.

LOCATION STRATEGY

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 The location target for the business, as has been mentioned

in the Market Segmentation, is nationwide with emphasis to major cities

such as in NCR, Region IV-A, Cebu and Davao. By looking at the map and

making Metro Manila as the primary clientele for Haus of Rayos, the

Center-of-Gravity where the physical office and

manufacturing/production of garments is to take place would either be in

Mandaluyong or in Taguig for several reasons that the proprietor

qualitatively observed:

If the headquarters is to be placed in Mandaluyong, it would be at

the very center of Metro Manila which will therefore be a favorable

location to be equidistant to its customers. Moreover, it is also near

Divisoria, Manila where the fabrics and other raw materials can be

sourced. Fulfillment companies such as JRS Express, LBC and Xend are

all present in the area as well. However, lease rates in Mandaluyong are

rather too high since it has already become a business district. A 20-

square-meter single-floor property alone can already cost Php 10, 000 a

month which not very cost-effective for an enterprise that will need more

space for sewing machines and storage area. Lastly, traffic conditions in

Shaw Boulevard and nearby roads are unforgiving and will therefore cost

time and later, money.

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 On the contrary, Taguig isn’t at the center of Metro Manila

geographically but it is the heart of the business districts in Central Metro

Manila. Its position on the map paves way for alternative source of raw

materials in Taytay, Rizal via C-6 Road where traffic is not that much of

an issue. Fulfillment companies such as JRS Express, LBC and Xend are

all present in the area, too. Finally, the proprietor’s relative has a 100-

square-meter two-storey property for lease in Taguig which will only cost

Php 15, 000 monthly. It would be more cost-effective compared to that

in Mandaluyong.

Other than Metro Manila, Haus of Rayos will also cater nationwide

particularly in Rizal, Cavite, Laguna, Cebu and Davao among others.

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PROMOTION STRATEGY

There are several ways to promote the products and the

brand at large. Haus of Rayos’ promotion strategies will be categorized

into two (2) efforts: Online (Pull Marketing) and Offline (Push Marketing).

Online Strategies

Online Strategies refer to any activities and initiatives being

done with the aid of the Internet and Network communications.

The following online strategies will be implemented by the

company:

a. Social Media Marketing – Facebook Ads, Instagram Ads

and Twitter Ads are the most common social media

marketing tools. Post boosting will help reach more

audience for the brand and will help them land on the

online store front. Also, it is a great tool to capture

targeted audience whose interests fall under the Fashion

and Beauty category. Insights for social media posting

can also be easily generated for the management to see

whether launched campaigns are effective or not.

b. Content Management – Shopping ready-to-wear

clothes can be just a run-of-the-mill activity. However,

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 since online customization in shopping clothes is quite

different, it wouldn’t bite to upload contents on tutorials

may they be flat posts or video content. The website is

not to be limited for shopping alone but also for those who

would like to know more about fashion, beauty and

lifestyle. Uploading content on a regular basis will make

more presence for the brand online and will tend to bring

in more sales.

c. Social Media Influencers – Youtubers and Insta-

famous individuals are to be commissioned to create

content for Haus of Rayos in exchange of sponsorships. It

will surely add more audience to the brand since these

vloggers and bloggers already have loyal followers who

would most likely try whatever they try and give a good

review on.

d. Email Subscriptions – Page visitors can also subscribe

to our monthly e-magazine with exclusive discount

coupons being sent out to their emails. This is a form of

crowdsourcing to generate lead targets for potential sales.

A 30% discount coupon is to be sent out to subscribers to

be used on their first purchase at Haus of Rayos.

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 e. Google AdWords – Aside from social media ads, Google

also provides business marketing solutions through

AdWords. Once campaign is launched, the ads will appear

in various other websites that have been algorithmically

identified by Google based from the targeted audience.

f. Youtube Ads – Video ads are also very popular

nowadays. For a new mobile app like Haus of Rayos, the

management may opt to spend on ads that will introduce

the brand to the market.

OFFLINE STRATEGIES

The following marketing initiatives are to be conducted

offline and will therefore require physical interaction with an

audience and/or will involve the traditional trimedia (TV, radio and

print):

a. Events and Activations – as part of the promotion

strategy, an event with fashion vloggers, bloggers

and other fashion influencers is to be organized as

part of the launching of the brand as a mobile app

and as a website. Days prior to the event, guests

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 would have tried the app to design and create their

outfits for the date of the launch. They will all be

commissioned to document and post their shopping

experience and their reviews on the garments that

they co-designed.

b. Fashion Magazines and Newspapers – print ads

are not to be neglected. Magazine and newspaper

readers might have missed all the online efforts

therefore they can be anchored with the traditional

media platform.

c. Corporate Social Responsibility – It is also Haus

of Rayos’ advocacy to support local fabric

manufacturers. A collection exclusively comprised of

Filipino fabrics will therefore be put on the product

line to support our fabric weavers from different

ethnic groups. With this effort, we can give

employment to local weavers and promote local

fabric. Another advocacy that Haus of Rayos would

like to focus on is the environmental preservation

and developmental sustainability using reusable zip-

lock packages for our products. Through which, our

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 cause for the environment can be spread to our

customers.

CONTROLS

To ensure that the aforementioned strategies are being

followed for the ultimate goal of realizing the company’s vision, a pyramid

guide shall be utilized so that the company can measure its activities on

a weekly, monthly, quarterly, semi-annual and annual basis. With the use

of the pyramid, weekly objectives are being monitored for the sole

purpose of providing quality service for customers and achieving more

sales for the company and its people’s growth and welfare.

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ORGANIZATIONAL PLAN

FORM OF OWNERSHIP

Haus of Rayos shall be a one-man corporation with Enrico

Rayos as the CEO and President at least for a time-being until the

company grew and became more scalable for Mr. Rayos to open seats for

the Shareholders Board.

ORGANIZATION CHART

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 A vertical organizational structure has been developed for

Haus of Rayos has been developed for the Haus of Rayos since it is a start-up

business and the management wouldn’t be able to run a large number of

personnel at the time being. However, reorganizing and restructuring of the

organization structure is quite possible in the coming years.

ROLES AND RESPONSIBILITIES OF MEMBERS OF ORGANIZATION

PRESIDENT* – The President shall act as the CEO and

General manger of the enterprise until such time that it has grown

bigger and the need of senior-level positions has risen.

MARKETING DIRECTOR* – The Marketing Director shall be

tasked on creating marketing strategies for the company for it to

heighten brand awareness, increase sales and maintain customer

loyalty.

SOCIAL MEDIA CORRESPONDENT* – Tasked to ensure

continuous social media engagement of Haus of Rayos and provide

assistance to online shoppers whenever necessary. They are also

assigned to upload contents on a regular basis.

PRODUCT DESIGNER* – Focused on developing new

products for House of Rayos and works together with the Web

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Developer in Creating new experiences on the website and on the app

for the customers.

I.T. DIRECTOR** – Troubleshoots any technical difficulties

on the website and on the app for optimum customer experience. Also

maintain management information systems for the company.

WEB DEVELOPER** – Maintains the aesthetic appeal of the

website and the app together with the product designer.

FINANCE DIRECTOR* – Serves as the budget officer,

payroll master and treasurer of the company.

BOOKKEEPER** – Does accounting duties for Haus of Rayos

and analyzes the liquidity of the company

PRODUCTION MANAGER* – Ensures the quality of

garments being produced and sent out for delivery on the right

addresses.

PURCHASER* – Serves as the logistics officer and supplier

relations officer to ensure that raw materials are available accordingly

demand of orders.

SEAMSTRESSES – Sew the garments being ordered.

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(*Roles/functions that the entrepreneur shall assume and perform

upon the commencement of the business.)

(**Roles/functions that the entrepreneur shall outsource on a project-

based agreement.)

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FINANCIAL PLAN

MAJOR ASSUMPTION

a. The company will be classified as a one-person corporation with an

initial investment of Two Million Pesos (PhP 2,000,000.00).

b. All transactions on sales will be on cash basis on the first year of

operation and will then accept card payments both debit and credit

cards.

c. Sales growth shall be kept conservative at 10% of the previous year

per annum.

d. Depreciation of machineries and equipment and other non-current

assets is assumed to be at 15% per annum.

e. An average price point of PhP 1500 per garment is used to come up

with gross sales amount.

f. Purchases for raw materials is assumed to be at Php 600 per

garment and is going to be purchased on a weekly basis. A

conservative rate of 3% of the Purchases is assumed to be remained

as ending inventory yearly.

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PRO FORMA STATEMENT OF COMPREHENSIVE INCOME

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PRO FORMA STATEMENT OF FINANCIAL POSITION

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Page 46
PRO FORMA STATEMENT OF CASH FLOWS

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RO FORMA STATEMENT OF CHANGES IN EQUITY

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APPENDIX

https://cnnphilippines.com/business/2019/01/04/philippine-e-commerce-

2019.html

https://ecommerceiq.asia/shopee-for-men-ph/

https://janio.asia/sea/philippines/who-are-philippines-online-shoppers/

https://grit.ph/online-shopping/

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