A FEASIBILITY STUDY ON THE MERCHANDISING OF INSPIRED CUSTOM

CLOTHING IN BAYAWAN CITY

A Feasibility Study
Presented to the
Faculty of the college of Business Administration
Negros Oriental State University
For Evaluation and Approval

BY

EMIL JOHN DACULA

JOLLYMAE BAYLON
VERONICA SASTRE
JIMELYN JABAGAT
AIZA SILVA

JANUARY 2021

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 Chapter 1

The Problem and Its Scope

INTRODUCTION

As online markets grow and become increasingly competitive, we tend to study

the importance of customization as a tool to satisfy and retain customers in online

market or e-commerce. By adopting the customization, the apparel industry may have a

greater potential than ever before of being successful in e-commerce. The internet is an

important means for customizing apparel and it has been identified as the most suitable

product category for personalization.

Offering a personalization service is another way to add a competitive edge to

our business and make it one of a kind. Customization is one of the most current

advancements, and extremely uncommon in clothing merchandise. In this kind of

business, we may run over different kinds of customers. The customization provides us

a way to an arrangement and serves a wide range of clients, including the critical one.

Each customer is not the same as others and has their individual tastes and

inclinations. We will go over numerous fastidious clients who abstain from acquiring

large scale manufacturing clothing and search for something special. By offering custom

clothing merchandise in online are genuine open doors for people to make and buy one-

of-a-kind structures which will 100% meet their necessities. Inspired Custom Clothing

online merchandise will give an incredible to satisfy one’s creative mind and convey the

requirements of every one of our clients.

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Name of the Project

The business shall be known as INSPIRED CUSTOM CLOTHING Online Merchandise

which means to inspire people by creating their own personalizes apparel. The business

will ensure quality service at customers’ satisfaction as it guarantees personal creativity

for the customers.

Location of the Business

The Inspired Custom Clothing will be located at National Highway besides

Palawan Pawnshop, Poblacion, Bayawan City Negros Oriental. This will serve as the

production and claiming area where distribution and fabrication may happen and will

also serve as storage of all equipment and materials owned by the business. The

proposed location is one of the ideal sites as it is very accessible to target market since it

is situated at the Poblacion area of the City.

Nature of the business

Inspired Custom Clothing Online Merchandise is a product provider, type of

business that does not only offer a variety of clothing products online, but also

encourages creativity to the customers when they purchase their preferred apparels in

our online store. Customers can customize it with their own designs or they can choose

from our predefined graphical art works in our online platform.

Mode of Financing

Inspired Custom Clothing Online Merchandise start-up capital is TWO MILLION

FIVE HUNDERD FOURTY FIVE THOUSAND AND HUNDRED SIXTY FIVE PESOS

(PHP. 2,545,165.00) ONLY which will be needed by the proprietor to operate the

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business. This start-up capital will cover the procurement of equipment and materials

needed. The advertisements and promotions, licenses and registration, training of

employees, rent and other pre-operating needs will also be covered by the said amount.

The proponent of the business is Mrs. Carmelita Speights, a Manager of Walmart at

4000 North Ave. Woodbridge VA 22192 Washington D.C, USA. She is a Manager for 20

fruitful years where she saves money that will be used to finance the project.

Objectives of the Study

This study aims to determine the feasibility of Inspired Custom Clothing business in

Bayawan City.

1. Is the propose business feasible in e-commerce point of view?

2. Is the propose business feasible in technical aspect?

3. Is the propose business feasible in management perspective?

4. Is the propose business feasible in financial standpoint?

5. Is the propose business feasible in socio- economic view?

Significance of the Study

The study is significant to the following:

Proponent. This study can identify potential obstacle that may impede its operations

and recognize the amount of funding it will need to get the business up and running.

Negros Oriental State University Bayawan – St. Catalina Campus. This study

creates an impression that the university is capable of producing quality students by

exposing them to extensive research.

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Researcher. Through this study, the researchers will acquire new ideas and skills that

can be use in application of their future business.

Future Researcher. This study would help the student researchers to be aware and

knowledgeable of the processes involved in the Inspired Custom Clothing. It would help

them to be a better analyst and it can be helpful as a reference for more studies in the

future.

Scope and Delimitation of the Study

The propose study is concentrated in knowing the marketing, management,

technical financial and socio-economic aspects of INSPIRED CUSTOM CLOTHING

Merchandise in the nine (9) Barangays of Bayawan City namely; Brgy.Villareal,

Brgy.Tinago, Brgy. Banga, Brgy. Suba, Brgy. Maninihon, Bgy. Boyco, Brgy, Ubos ,Brgy

Poblacion and Brgy. Malabugas. The respondents of the study would be teenager,

adults and some small group of people in Bayawan City. However, the other Barangays

and neighboring municipalities that are not mentioned above are considered as our

second target market. This group and individual people were considered as the primary

market of the business taking into consideration their purchasing power. The products

will be directly personalized in the online store and can be claimed in our office area.

The researcher made use of online survey questionnaire in gathering data responses of

the respondents. The data gathering will commence on January 2021.

Definition of Terms

Apparel= these are the product (shirts, caps, pants, shorts, trendy tops and etc.) that

the customers buy and customized.

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Customized= Refers to customer personalization.

Store= these refers to our production, distributions and claiming area.

E-commerce= refers to our online platform for promoting and selling our products

Services= these refers to the production of the customer orders.

Research Methodology

In this part of the study, it covers mostly the research design, research locale,

research respondents, research instrument, data gathering procedure and the statistical

treatment of data.

Research Design
The study used exploratory-survey; exploratory research is not typically

generalizable to the population at large. Social exploratory survey "seeks to find out how

people get along in the setting under question, what meanings they give to their actions,

and what issues concern them. The goal is to answer those questions by gathering data

through the use of online surveys.

Research Locale

The research would be conducted in the nine (9) Barangays in Bayawan City

specifically in Brgy.Villareal, Brgy.Tinago, Brgy. Banga, Brgy. Suba, Brgy. Maninihon,

Brgy. Boyco, Brgy, Ubos, Brgy. Poblacion and Brgy. Malabugas that have internet

access. However, the other Barangays and neighboring municipalities that are not

mentioned above are still welcome to purchase our online store. The respondents will

answer questions through online surveys that would be distributed in social media. The

study will be conducted in first semester of the academic year 2020-2021.

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Research Respondents

The research respondents of the study are those individuals, preferably the

millennials and Gen x that are situated in 9 barangays in Bayawan City with internet

access that are active in social media and have a capacity to purchase.

Table1. Total Number of Individual

Name of Barangays Number of Individuals

Villareal 11,250
Malabugas 5,127
Tinago 3,265
Banga 6,644
Suba 2,510
Maninihon 6,488
Boyco 1,565
Ubos 1,647
Poblacion 3,012
Total 41,508

In order to get the sample size of the study, the researchers used the Slovin’s

Formula with the application of the proportional sampling.

Below, shows the computation is getting the number of respondents.

Slovin’s Formula:

N= N

{1+N (e)2 }

Where:

n= sample size

N= total individual

e= margin of error

n= 41,508

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 {1+42,508 (0.05)2}

n= 41,508

{1+42,508 (0.0025)}

n= 41,508

(1+.5.6775)

n= 41,508

6.677

n= 340.097342 or 340 respondents

Research Instrument

In collecting information, researchers prepare and utilize a questionnaire needed

for the study. The questions in the online survey contains relating to the management,

marketing, financial, socio-economic and technical aspect of the study and is review and

examine by the adviser before disseminating it to the study respondents. The survey

well serve as a basis in gathering and interpreting the demand, stability and feasibility of

the propose business.

Data Gathering Procedure

The researchers will gather data from each barangays through online in acquiring

the total population of the nine (9) Barangays namely: Poblacion, Tinago, Maninihon,

Villareal, Ubos, Banga, Boyco, Suba and Malabugas as the target.

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Statistical Treatment of Data

The researcher employed different tools in the financial analysis of data, payback period,

profit margin, return on assets, return on equity, and return on investment, payback

period, net present value and profitability index.

Gross Profit Rate

Gross Profit
Gross Profit Rate =
Net Sales

Return on Sales
Operation Income
Return on Sales =
Net Sales
Return on Investment
Net Income
Return on Investment =
Ave. Owners’ Equity
Return on Assets
Net income
Return on Assets =
Ave. Total Assets

Assets Turnover
Net Sales
Assets Turnover =
Ave. Total Assets

Income Statement.

This reports the business’ financial performance over a specific accounting

period. The Income Statement is important in this study because it shows how things

are going and the profitability of the Inspired Custom Clothing Online Merchandise. This

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is a planning and analysis tool, it shows how decisions affect the business operation. It

also is important to manage the expenses.

Balance Sheet.

This is the statement of the assets, liabilities, and capital of a business in a point

of time. Balance Sheets are crucial in this study because this helps the business know

its financial standing. It is important that the business identify the trends to make

informed financial decisions.

Cash Flow.

From the name itself it is the cash that flows in and outside of the business. It is

important that the business has a good cash flow to keep it moving. Being able to

generate enough cash is the key in keeping the business healthy.

Online Survey Questionnaire

This is a survey for a new product which we intend to launch in Bayawan City.

The product is an online custom clothing service where clients can personalize their

prefer choice of clothes in the comfort of your homes and have it created and delivered

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to your location. Of course, other features are involved but this survey is particular to

this feature of the service. Your feedback will be highly appreciated. Thank You!

1. When you think about online custom clothing service, do you think of it as something

you need or don’t need?

Definitely need

Probably need

Neutral

Probably don’t need

Definitely don’t need

2.  If you are not likely to purchase our product, why not?

Do not need a product like this

Do not want a product like this

Satisfied with competing products currently available

Cannot pay for a product like this

Not willing to pay for a product like this

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3. If the product were available today, how likely would you be to buy the product?

Extremely likely

Very likely

Somewhat likely

Not so likely

Not at all likely

4. What is your first reaction to our product and services?

Very positive

Somewhat positive

Neutral

Somewhat negative

Very negative

5.  Do you dress to stick out and unique, or to fit in?

Unique- I like being different and stick out from everyone else

Unique while still blending it- I like to be different but also fit in

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 Blend in- I really want to fit in with everyone else

6. On what criteria would you judge the quality of delivery of an online custom clothing

service?

Quality of clothing item produced

Speed of delivery

Cost

Quality of materials used

Customization options available

Ease of use of the website

Customer service

7. How often do you make purchases online?

Frequently

Once in a while

Seldom

Never had (but would if i see a product that would compel me to)

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 Never had and never will (online transactions freak me out)

8. What is your gender?

Female

Male

9. What is your age?

18 to 24

25 to 34

35 to 44

45 to 54

55 to 64

65 to 74

75 or older

10. How much do you spend on clothing a month?

0 - 500

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500 – 1,000

1,000 – 1,500

1,500 – 2,000

2000 or more

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