Professional Documents
Culture Documents
PROPOSAL SUMMARY...................................................................................................1
BUSINESS INTRODUCTION............................................................................................2
Mission Statement..........................................................................................................2
Goals and Objectives.....................................................................................................3
Management Team Description......................................................................................3
PROJECT DESCRIPTION................................................................................................3
Competitor......................................................................................................................4
MARKET ANALYSIS.........................................................................................................4
Documented Research...................................................................................................4
Demographic and Behavior............................................................................................5
Geographic.....................................................................................................................5
Target Market..................................................................................................................6
Product and Price...........................................................................................................6
Promotion and Location.................................................................................................8
OPERATIONAL PLAN......................................................................................................9
Production......................................................................................................................9
Location..........................................................................................................................9
Permits and Licensing....................................................................................................9
Personnel.....................................................................................................................10
Accounting System.......................................................................................................10
FINANCIAL PLAN...........................................................................................................11
Sales/Profit Forecast....................................................................................................11
Income Statement........................................................................................................14
Cash Flow Statement (Budget for Expenses)..............................................................14
Breakeven Analysis......................................................................................................14
APPENDICES.................................................................................................................15
PROPOSAL SUMMARY
The neighborhood sari-sari (variety or general) store is part and parcel of daily
life for the average Filipino. Any essential household good that might be missing from
one’s pantry – from basic food items like coffee and biscuits, to other necessities like
soap, and matches – is most conveniently purchased from the sari-sari store nearby at
affordably-portioned quantities, sometimes even on credit. The sari-sari store is a
constant feature of residential neighborhoods in the Philippines both in rural and urban
areas, proliferating even in the poorest squatter communities.
Most sari-sari stores are family-run privately owned shops and are operated
inside the shopkeeper's house. Commodities are displayed in a large screen-covered or
metal barred window in front of the shop. Candies in recycled jars, canned
goods and cigarettes are often displayed while cooking oil, salt and sugar are often
stored at the back of the shop. They also distribute prepaid mobile phone credits. The
sari-sari store works with a small revolving fund, and usually doesn't have the means to
refrigerate and store perishable goods. However, they may have refrigerators that can
store other products such as soft drinks, beers and bottled water.
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to cover up this whole project. Also, it needs a certain amount of money, time, labor, and
materials to complete establishing this store.
BUSINESS INTRODUCTION
Sari-sari stores are small retail outlets that can be found in almost all
neighborhoods, sometimes even in every street corner in the Philippines. Most sari-sari
stores are privately owned shops and are operated inside the store owner’s house.
Sari-sari store is one of the most businesses in the community. Each and every
corner in the country has a Sari-sari store and this is clear that Sari-sari store provide
daily needs products. Each of us can see a lot of sari-sari store everywhere but we
should also be aware that some places or barangays has a few sari-sari stores in their
community.
Mission Statement
The mission of Pure Green Sari-sari Store is to offer daily need food products in
the community. It is the biggest Sari-sari store in the community and it will assure that it
will be able to provide all your needs. The items are always sold by smaller amount to
make it more affordable for people who live day to day and can’t afford buying in bulk
like in grocery stores. Pure Green Sari-sari store has a good service and has friendly
staff that can satisfy you when you’re buying here in the store.
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Goals and Objectives
The goals of Pure Green Sari-sari store are; to earn profit, to have many
customers, to sell all products, to satisfy all customers and to supply the needs of the
people in the community. And the objectives of Pure Green Sari-sari store are; to
provide the community easier access to goods and products sold on wholesale, to
provide retail goods to consumers, to provide affordable good and services to
consumers, to manage product inventory, to attain visibility of the name and banner, and
to provide people the opportunity to have their own source of income.
Each member is responsible, committed and knows what to do for the business
so that it will be successful. The business is just new in the community. The business
started because they knew that the place of their one friend has only few sari-sari stores
in there and that’s why we decided to build a sari-sari store in their place. Building a
business like this is considered an experience for us and we know that we can learn
many things from this business. They believe that everything should start from the
bottom to the top because they have a goal that their little sari-sari store will become a
grocery store someday, that’s why they are going to do their best to be successful.
PROJECT DESCRIPTION
Building this project of the Pure Green Sari-sari store will help and provide the
needs and wants of the people living around the area of Santa Lucia Dasmariñas
Cavite. The store will sell wide variety kinds of products, foods, and supplies. All the
products will come from the main distributors for a cheaper price and to maximize profit.
The researchers will be the owners of the Pure Green Sari-sari store and they will
provide the business capital in building this project. The funds will be divided equally to
all members of the group to start putting up this sari-sari store project. The groups will
also follow the regulations in building a sari-sari store legally like getting business
permit.
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Competitor
The top competitor will be the supermarket around nearby and its quite known by
the people. Supermarket already establish a good marketing strategy and their market
share continuously growing. They offer bundle promo’s, loyalty discounts, leader pricing,
and they use the 4 P’s (product, price, place, and promotion) as their market strategy.
They also use advertising, shelves strategy, product placement, and music, lighting and
visual effects as their marketing strategy for a high market share. They already target a
wide range of consumers because of the maturity of the company in the world of
business.
As building this Pure Green Sari-sari store there would be threats and new entrants of
competitors. The best way to overcome these barriers is to continuously upgrade the
store and provide more products for the consumers be satisfied. Create a good market
strategy to attract more consumers and deliver a good service to the customers.
MARKET ANALYSIS
Documented Research
The pattern of development in third world countries has resulted in a splitting of the
labor force. One portion works in the formal, structured sector of the urban economy
which is characterized by high wages, relatively good working conditions, job security,
and an opportunity for advancement; the other portion works in the unstructured,
informal sector with relatively low wages, poor working conditions, high variability in
employment, and little opportunity for advancement. Any essential household good that
might be missing from one’s pantry – from basic food items like coffee and margarine, to
other necessities like mosquito coils, soap, and matches – is most conveniently
purchased from the sari-sari store nearby at affordably-portioned quantities, sometimes
even on credit. About 95% of sari-sari stores are located at residential areas and a small
portion of the owner’s house.
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Demographic and Behavior
Sari-sari stores have higher prices when compared to supermarkets but provides
several benefits to their customers. Sari-sari store is open to everyone and allows
members of the community easy access to basic commodities at low costs. Following
the concept of tingi or retail, a customer can buy 'units' of the product rather than whole
package, even though buying products through tingi can be practical for the buyer, its
cumulative costs may be more expensive than buying the product's regular units. The
sari-sari store also saves the customer extra transportation costs, especially those in
rural areas, since some towns can be very far from the nearest market or grocery. The
store may also allow purchases on credit to their customers.
You can find Sari-sari stores in every barangay (village or neighborhood) and they have
very reasonable opening hours. Usually they are part of the owner's house, so
sometimes you can just knock or ring a bell and they will open it for you.
Sari-sari and convenience stores also ensure that you never run out of load on your cell
phone, as they all offer prepaid cards or E-load (electronic load) for all common Mobile
Phone Network. Knowing the buying behavior of consumers in the sari-sari store will
also help companies plan which SKU to drive. For instance, knowing how much people
spend per sari-sari store visit and how often they buy a specific category can aid
manufacturers in determining a product’s price and packaging.
Geographic
Sari-sari stores are small, privately operated stores, offering - usually through a
window, everyday needs such as bread, chips, toothpaste, beer, soft drinks, and
household goods. They are adapted to the lower-income classes, selling detergents and
cosmetics in small sachets starting at 5 pesos, and cigarettes by the stick starting at
2.50 pesos. Sari-sari store doesn’t require anything to buy a certain product; it is open
for all customers.
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Target Market
The focus on the target market is the population around the area (Santa Lucia,
Dasmariñas). Locals who belong to the lower middle-class are the usual patrons of the
so-called pautang or palista (debt) practice. Since some buyers do not have the means
to pay on the same day, they may place their purchases on a tab and just pay their debt
once they have money.
Some say sari-sari stores promote bad habits, encouraging Filipinos to fall into debt by
borrowing beyond their means. Others say it could be a good thing because it
supposedly triggers small-scale consumer-driven economic activity.
The products will differ from other sari-sari stores, since the store will be new to
the public. Other sari-sari stores have limited supplies of product. There will be supplies
of products every day since the business will go directly from the suppliers. The prices
are lowered compared to other sari-sari stores. Pure Green sari-sari store is not just an
ordinary store, because the prices are affordable and locals can buy anything they want.
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Fabric Conditioner 15 15 18
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Soy Sauce (bottle) 17 17 20
Cup Noodles 17 17 17
Noodles (pancit canton) 13 15 18
Noodles (soup) 12 12 12
Junk foods 10 11 12
Pure Green sari-sari store will promote the business so that locals from
Dasmariñas will become more aware of the business, unlike other sari-sari stores
doesn’t try to promote or have any materials which can help them in becoming more
active to the locals. There will be different Print ads posted in the sari-sari store and
different signage to easily notice the sari-sari store. Pure green will be located at Santa
Lucia, Dasmariñas where many residents and students are going to the nearest malls
which may be too far from the village.
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OPERATIONAL PLAN
Production
The Products to be offered in the Pure Green Sari-sari store will come from
different distributors and the store will go directly to the suppliers as much as possible
because it is better than buying products in the supermarkets so that we can provide
lower prices for the customers. The Pure Green Sari-Sari Store will also offer different
kinds of products for the people in barangay Sta. Lucia, Dasmariñas City, Cavite for
them to have more choices. Before selling those products, its quality and its demand in
the barangay will always be checked.
Location
The sari-sari store will be built in Barangay Sta. Lucia, Dasmariñas City, Cavite
because based from an observation it doesn’t have a sari-sari store, so the people living
in the community used to go to other places that has sari-sari store nearby. In choosing
the specific location for the sari-sari store in Barangay Sta. Lucia, Dasmariñas City,
Cavite will be based on: (1) a place where people can easily notice the sari-sari store
(2) a place which is near schools and near busy streets. If those are to be considered,
this business will surely become a success. Purchasing an own space for the sari-sari
store will also be considered to lessen the monthly expense of the business.
Every business here in the Philippines needs to be legally operated and follow a
specific law and local ordinances. Based on the municipal/city hall near Barangay Sta.
Lucia, Dasmariñas City, Cavite, the list of requirements to register a sari-sari store
business are the following:
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The Pure Green Sari-sari store will follow these steps and will also register so that it can
operate legally when it started.
Personnel
The Pure Green Sari-Sari Store will be having 2 sales staffs. Those sales staffs
will be trained properly on how to communicate and serve the customers properly and
how they will get the customer’s loyalty. They will also be trained on how to monitor the
inventory of the store so they can personally know if the business is at risk or a success.
Figure 1.
Sales Staf
Owner/Manager
Sales Staf
Accounting System
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FINANCIAL PLAN
Sales/Profit Forecast
Presented table below shows the Sales Forecast for Pure Green Sari-sari Store
for the next years. Figures for target share are in relation with the computation of
projections with respect to supply and demand.
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Evaporated Milk (Small) 12 12 12
Evaporated Milk (big) 28 28 30
Sinigang Mix 16 16 16
Cooking Oil (375 ml) 36 36 36
Cooking Oil (750 ml) 82 82 82
Refined and washed sugar (1/4) 13 13 13
Refined and washed Sugar (1/2) 26 30 30
Vinegar (pack) 6 6 6
Vinegar (bottle) 15 15 15
Soy Sauce (pack) 8 8 8
Soy Sauce (bottle) 17 17 20
Cup Noodles 17 17 17
Noodles (pancit canton) 13 15 18
Noodles (soup) 12 12 12
TOTAL 681 692 701
Toiletries
Shampoo 6 8 8
Conditioner 6 6 8
Body Soap 32 32 32
Toothpaste 12 12 15
Napkin (with wings) 7 7 8
Napkin (without wings) 5 5 5
Diaper (Small) 6 7 8
Diaper (medium) 8 8 10
Diaper (Large) 9 9 15
Diaper (XL) 11 12 15
TOTAL 102 106 124
Laundry Products
Detergent Powder 10 12 15
Detergent Soap 12 15 17
Fabric Conditioner 15 15 18
TOTAL 37 42 50
Soft Drinks
In small plastic bottle 10 10 15
1.5 ml 45 45 50
1.75 ml 55 55 55
TOTAL 110 110 120
School Supplies
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Bond paper (per pcs.) 0.5 1 1
Marker 30 30 30
Pencil 8 8 9
Cartolina 10 12 15
Manila Paper 10 12 13
Water Color 20 20 25
Notebook 25 25 28
Crayons 15 15 15
Glue 15 15 15
Ruler 7 8 10
Scissors 15 15 15
Ballpen 8 9 9
Tape 10 10 15
Folder 8 8 10
TOTAL 181.5 188 210
SALES
School Supplies 9,445,470 10,881,700 11,478,875
Toiletries 819,060 1,082,472 1,409,632
Laundry Products 337,625 426,300 615,00
Drinks 923,450 998,250 1,407,000
Dry Goods 1,324,950 1,950,688 2,652,300
TOTAL 12,850,950 15,339,410 17,562,807
Income Statement
Breakeven Analysis
= 3,956,268/12,850,555 = 4,106,268/12,850,555
Operational Cost
(Store Space, Repairs & 30,000
Maintenance, Equipment)
Salaries and Wages 120,000
(12 months x 5,000 x 2 employees)
TOTAL 150,000
= 30.79% = 31.95%
APPENDICES
http://aer.ph/the-filipino-sari-sari-store/
https://en.wikipedia.org/wiki/Sari-sari_store
http://www.mixph.com/starting-a-sari-sari-store-business/
http://www.restaurants-guide4u.com/food_product.asp?id=28499
https://www.schoolsupplypacks.com/content/7-school-supply-pack-program-details
http://wowphilippines.com/product/canned-goods-assortment/
http://www.ecplaza.net/products/coca-cola-soft-drinks-pepsi_3826900
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https://image.slidesharecdn.com/pg-130912110011-phpapp01/95/procter-and-gamble-
pg-1-638.jpg?cb=1378983864
https://www.google.com.ph/search?q=products+of+sari-
sari+store&source=lnms&tbm=isch&sa=X&ved=0ahUKEwibi-
DU24DUAhVBG5QKHQ9tAQIQ_AUIBigB&biw=1920&bih=974#tbm=isch&q=dry+goods
+products+in+sari+sari+store&imgrc=hiLSppXDSseKgM:
https://www.google.com.ph/search?q=products+of+sari-
sari+store&source=lnms&tbm=isch&sa=X&ved=0ahUKEwibi-
DU24DUAhVBG5QKHQ9tAQIQ_AUIBigB&biw=1920&bih=974#tbm=isch&q=canned+g
oods+in+the+philippines&imgrc=M9gfWPc8iFxS4M:
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http://vmobile101.blogspot.com/2010/03/business-permit.html
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http://ubermanilatips.com/uber-partner-guide-to-dti-online-business-name-registration/
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http://2.bp.blogspot.com/_0pgYg75ipH4/S7FqmdyJrEI/AAAAAAAAAAs/z3HXyAmNp7A/
s1600/BUSPERMIT
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