Acknowledgment

This will serve as appreciation and recognition of those people who truly
guide, assist and encourage us to make this project a reality. We would like to take
this as an opportunity to express out deepest gratitude since this business plan
would not be possible without the help of the following:

To Mr. Marlon Luces, our beloved adviser, who guided us througout the whole
journey of making this business plan. He reminds us to always strive hard. Thus,
without his presence the goal of this project would not be achieved.

To our family and friends, who are always their supporting us all the way
through allowing us in spending a lot of time in making this business plan. This
business plan would not be possible without their financial support, patience, and
understanding.

Above all, we sincerely thank the Almighty Father for all the guidance that we
received. He gave us knowledge and wisdom throughout this whole journey.

Dedication

All our time, work, and patience that we had used in making our business plan
possible is dedicated to:
To our Almighty Father who showed his love, care, and support in making this
project a reality.
To parents and friends who stood beside us helping us finish this business
plan and supported us all the way.

To our teacher, Mr. Marlon Luces who guided us in making an effective

business plan, who give advice and motivation every time we need it. Lastly, who
gives his trust to all the members that we can really do it and finish it with a great
performance.
This journey was a tough one, thus we would like to dedicate this business
plan whose assistance was a milestone. We whole-heartedly appreciate the
presence of these people in making this project possible.
 TABLE OF CONTENTS

I. Executive Summary…….………………………………………………………………….…..

II.Business Background………………………………………………………………………….

A. Name of the Enterprise……………………………………………………………..

B. Brief Description of the Entrepreneurs……………………………………………
C. Projec’s Contribution to the Economy…………………………………………….

III. Product…………..………………………………………………….…….…………………..

A. Description of the Product…………………………………………………………

B. Comparion to its Competitors……………………………………………………..
C. Comparison…………………………………………………………………………
D. Target Market……………………………………………………………………….

IV. Management Plan.…………………………………………………………………………..

A. Business Name
B. Forms of Ownership
 Organizational Chart
 Job Description
 Job Qualfication

V. MARKETING AND SALES PLAN……………………………………………………………10

VI.OPERATIONS ………………………………………………………………………………...12

VII. MANAGEMENT STRUCTURE……………………………………………………………..12

VIII. FUTURE DEVELOPMENT…………………..………………………..……………………13

IX. FINANCIALS…………………………………………..……………..………………………..14

A. INCOME STATEMENT……………………………………………………………….14

X. CONCLUSION………………………………………………………………………………….16
BUSINESS BACKGROUND

A. Name of the Enterprise

Fragranza— a new brand of perfume to be launched and established this coming

January 2020. It will be located mainly at F. Torres St., Davao City. The enterprise name
was originated from Italian word Fragranza which means an exquisite and pleasant smell.
The owners aim is to cater the needs of the customers by providing them a unique fragrance
that will surely pique and captivate their interest. Also building up their confidence is one of
the goal of this product.

B. Brief Description of the Entrepreneurs

We are young entrepreneurs who made this dream possible by putting up Fragranza
were taking up Accountancy, Business and Management is one of the most prestigious
school in Davao City— Davao City National High School. We are aspiring young
entrepreneurs namely Ana Marie Bastasa, Daisy Anne Cirunay and Mhea Rose Pizon. Up
until now we are still on the stage of processing and developing a high quality of perfume.

C. Project's Contribution to the Economy

A great impact is expected if this product is successfully launched. It will change not
just the lives of the owners but also individual who will use the product in building up their
confidence which is essential in their day to day experience with interacting towards another
person. With the right of implementation this small enterprise will have a contribution to the
economy.
PRODUCT

A. Description of the Product

Fragranza is a newly established venture that aims to produce various types of

perfume in Davao City mainly at F. Torres Street. Our product is a combination of mixed
chemicals wherein it resulted into a deodorant perfume that made it extremely unique from
others.

B. Comparison to its Competitors

Instead of separately buying a deodorant and perfume, we, the owners decided to
create a deodorant perfume in order to address this problem. In spite of the fact that we are
using various chemicals, we are confident enough that our product is not harmful in nature.

C. Comparison

Business is nothing without competitors. In order to keep up with the competition,

ensuring the quality of the product by sanitizing and following accurate procedure to make
the final output is the main priority of the business. With these reasons we believe that we
are ready and competent enough to match the product offered by different companies. The
advantage of deodorant perfume is clearly visible. We are the first one to present this type of
the product to the market.
D. Target Market

Our specific target market are the students coming from Davao City National High
School for our business is mainly located at F. Torres St., Davao City. Settlers and even the
by passers of this place are also considered as customers.

E. Marketing Plan

A. Demand Analysis

Table 1
QUANTITY DEMAND FOR THE CURRENT YEAR

YEAR BARANGAY 10-A POBLACION QTY. DEMAND AVERAGE

POPULATION OF
5/PERSON PER YEAR

2019 3000 15,000

B. Supply Analysis

Table 2

QUANTITY SUPPLY FOR THE CURRENT YEAR

YEAR QTY. DEMAND AVERAGE OF 75% PER ANNUAL DEMAND

2019 11,250
C. Future Supply Analysis

Table 3
Fragranza
QUANTITY DEMAND FOR 5- YEAR PROJECTION

YEAR BARANGAY 10-A POBLACION QTY. DEMAND AVERAGE FOR 5

Population PERSONS/ YEAR
2020 4,000 20,000
2021 4,500 22,500
2022 5,000 25,000
2023 5,500 27,500
2024 6,000 30,000

Table 4

QUANTITY SUPPLY FOR A 5-YEAR PROJECTION

YEAR QTY. SUPPLIED AVERAGE OF 75% PER ANNUAL

DEMAND
2020 15,000
2021 16,875
2022 18,750
2023 20,625
2024 22,500

Sales

1st Year 2nd Year 3rd Year 4th Year 5th Year

D. Market Share

Figure 1
 Fragranza’s market share is gradually increasing annually. The impact of the
different marketing strategies used in spreading awareness of the company’s variouss
products are clearly visible. It steadily increase for 3% for the first two (2) years, 6% for the
3rd and 4th year, and for the final year projected it has garnered an annual increase of 8%.

E. Marketing Program
a. Selling and pricing strategy

Fragranza uses 5 selling strategies of Miranda Brookins within which we believe will
facilitate and can help us to influence and persuade our target customers to avail our
products and can additionally lead to a successful business. The following will be the brief
description of the selling strategies. First, is we should know our products well including the
advantages and features so that when our customers will ask us about it we can immediately
respond to them. Second, show them our product is worthy to purchase and also our
product's quality because they will be more convince when we will show it to them. Third, we
must understand our customer's needs and wants in order for us to satisfy their expectations
on our product. Fourth, we must show our customers how good our product is so that they
can introduce or recommend it to their families and friends. And for the fifth and last selling
strategy, we must be competitive in terms of pricing. On the other hand, our pricing strategy
must fit in the competition. It should be affordable and we provide reasonable value for our
customers . Rather than having a high price on our value, we have decided to lower it so that
our customers will be attracted on our product.

b. Costing of Raw Materials

Table 5

Quantity Unit Description Unit Cost (Php) Total Cost (Php)

500 ml Aloe Vera Gel 180/L 90
125 ml Alcohol 240/L 30
50 ml Liquid Scent 400/L 20
5 pcs. Spray Bottle 16/Pc 80
856 230

c. Selling price

Table 6
 Description Selling Price
1 bottle of Hand Sanitizer =
50 ml (Aloe Vera Gel) + 5ml (Alcohol) + 35 Php
2ml (Liquid Scent) + 1 pc bottle

For a beginning capital of 230 php it can produce 10 bottles of hand sanitizer. The
remaining of 75 ml of alcohol and 30 ml of liquid scent will be used in the next production. A
guarantee of 52% mark up was implemented by the owners.

d. Marketing strategy

Fragranza is a business that uses advertising because through this people will easily
see the product and also be aware of the details of the product. And by using of this we can
broadcast our business and we can show our product by using social media. We will use
Facebook, Twitter and Instagram by posting the details of the company especially the
product and it is also an advantage for the company because people nowadays usually use
social media almost everyday to be updated. And also by using social media we can easily
sell our product. Social media is useful in presenting and introducing our product. It is very
helpful because by the use of this we can sell our product quickly in order to make profit
that’s why we choose Facebook, Twitter, and Instagram. Our product and our company has
a good service and we’re just starting that’s why we have not agreed with the other but
sooner or later we have a plan to have more partnerships and more connections to have
more sales and will become a progressive business.

VII. MANAGEMENT PLAN

A. Business name

The business shall be registered as Fragranza and will be mainly located at F.

Toress St., Davao City. Our product is a combination of mixed chemicals that resulted into a
deodorant perfume that made it extremely unique from others but affordable to purchase
that will satisfy each customer. Also our business is really effective because the plans are
excellently made and the tasks are well distributed, including the staffs, workers and mostly
the owners. It is advantage for the company to improve and produce more products.

Fragranza both uses hand and technology process. We will also promote our product
in other country by using our website. Fragranza's website contains all the information of our
company especially our product and also we want our company to train the newest software
for our company to be successful in the future.
 B. Forms of ownership

The kind of ownership of Fragranza is partnership. The business shall be registered

on the Securities and Exchange Commission (SEC).

a. ORGANIZATION CHART

Figure 2

OWNERS

MANAGERS

(TOP LEVEL)

(MIDDLE)

(LOWER)

EMPLOYEES

(Sales Staff)

(Purchaser)

(Cashier)

(Manufacturing Workers)

b. Job Description

Manager

• Liable of keeping things organized and defined.

• Monitoring performance and initiating action to strengthen results.

• Supporting problem resolution and decision making.

Sales Staff

• Able to perform market research.

• Effectively sell a product and help in bringing about revenue or profit to the company.

Purchaser

• Responsible for coordinating purchases of various products and services for their
company.

• Must be familiar with what’s out there, what it costs, and how it can benefit the company.

Cashier

• Assist customers in the in-store check-out process.

• Handle cash, credit or check transactions with customers.

Manufacturing Workers

• Cleaning and maintaining work areas and machinery.

• Monitoring the production process and carrying out basic testing and quality checks.

c. Jobs qualification

Sales Staff

 -Must be 20 years old and above

 -Must be a college graduate

Purchaser

 -Must be 20 years old and above

 -College or high school graduate

Cashier

- Must be 20 years old and above

 - Ability to handle transactions accurately and responsibly

Manufacturing Worker

 - Must be 30-35 years old

 - Must be in a good condition

VIII. TECHNICAL PLAN

A. Work Flow Diagram

Figure 3

Canvass

Purchasing of Raw
Materials

Making of Product
 Selling of Finished
Product

Production Procedure

The steps in making the Fragranza’s Hand Sanitizer were identified

below:

Step 1: Canvass

The entrepreneurs are very meticulous in choosing the right materials

for the perfection of their product. Different suppliers were visited in order to
gain knowledge about the pricing of the raw materials to be in used in the
production process.
Step 2: Purchasing of Raw Materials
After learning the pricing of the different suppliers, finally the owners
have purchased the needed materials in a much lower price.

Step: 3 Making of the Product

The hired manufacturing workers will fulfill their job/assigned task by

making the product. The lower level manager was expected to supervised
factory.
Step: 4 Selling of Finished Product
Lastly, the final output was displayed inside the store of Fragranza and
different sales agents were deployed in order to gain more profit.

B. Vicinity Map
 The vicinity map of Barangay 10-A Poblacion District, Davao City is presented
below.

C. Store Lay-Out

FRAGRANZA COMPANY

A Business Plan

Presented to The Senior High Faculty of Davao City National High School F. Torres
St., Davao City
 In Partial Fulfillment

Of the Requirements for the Subject

Business Simulation

2ND Semester SY. 2019-2020

BY:

Ana Marie O. Bastasa

Daisy Anne L. Cirunay
Mhea Rose A. Pizon

January 2020

XI- GAISANO