SMMC Feasibility Study on Facile Tote Bags Manufacturing Business

San Mateo Municipal College
Gen. Luna St., Guitnang Bayan I, San Mateo, Rizal

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A Feasibility Study
Presented to College of Business and Accountancy
San Mateo, Rizal
In Partial Fulfillment of the Requirement
for the Bachelor of Science in Accountancy
KASUYO, LAICA
OPIANA, LESTER
MOJICO, BERNIE
CUADERNO, KATRINA
MANLAPAZ, DIANE JOY
RAMOS, MICAH NATHANIELLE
Mr. Geno C. San Jose, CPA, MBA
September 20
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TABLE OF CONTENTS
CHAPTER 1: BUSINESS PROFILE ------------------------------------------------------------------1
Name of the Company -------------------------------------------------------------------------2
Nature of the Business ------------------------------------------------------------------------2
Company Mission -------------------------------------------------------------------------------2
Company Vision ---------------------------------------------------------------------------------3
Company Objectives----------------------------------------------------------------------------3
Company Logo -----------------------------------------------------------------------------------4
Capital Contribution ----------------------------------------------------------------------------4
Form of Business -------------------------------------------------------------------------------5
Location of the Business ---------------------------------------------------------------------5
Product Description ----------------------------------------------------------------------------6
CHAPTER 2: TECHNICAL ASPECT -----------------------------------------------------------------7
Introduction----------------------------------------------------------------------------------------8
Purchasing Up to Production Process----------------------------------------------------8
Production Facilities---------------------------------------------------------------------------13
Office/Storage Layout-------------------------------------------------------------------------13
Sources And Cost of Raw Materials------------------------------------------------------16

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Operation Schedule----------------------------------------------------------------------------18
Production Schedule--------------------------------------------------------------------------18
Waste Disposal Program---------------------------------------------------------------------21
Tools and Equipment ------------------------------------------------------------------------23
Other Schedules--------------------------------------------------------------------------------26
Other cost/expenses---------------------------------------------------------------------------27
CHAPTER 3: MARKETING ASPECT --------------------------------------------------------------31
Introduction---------------------------------------------------------------------------------------32
Industry Background--------------------------------------------------------------------------32
Market Research--------------------------------------------------------------------------------33
Presentation of Tables------------------------------------------------------------------------34
Projected Sales----------------------------------------------------------------------------------37
Breakdown of Cost of Goods Sold--------------------------------------------------------
37
Breakdown of Operating Expenses-------------------------------------------------------
39
Survey Questionnaire-------------------------------------------------------------------------41
SWOT Analysis of Company----------------------------------------------------------------51
SWOT Analysis of Competitors------------------------------------------------------------52
Pricing Strategy---------------------------------------------------------------------------------53
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Promotional Strategy--------------------------------------------------------------------------57
Result of survey in Google Forms--------------------------------------------------------57
FIGURES
1. Company Logo --------------------------------------------------------------------------------4
2. Capital Initial Contribution
-----------------------------------------------------------------4
3. Location
------------------------------------------------------------------------------------------5
4. Sample product offering--------------------------------------------------------------------6
5. Purchasing Up to Production Process ------------------------------------------------9
6. Production Facilities
-----------------------------------------------------------------------13
7. Office/Storage Layout ---------------------------------------------------------------------13
8. Sources and Cost ff Raw Materials ---------------------------------------------------16
9. Operation Schedule ------------------------------------------------------------------------18
10. Production Schedule ---------------------------------------------------------------------18
11. Waste Disposal Program ---------------------------------------------------------------22
12. Tools and Equipment --------------------------------------------------------------------23

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13.
Cleaning Materials / Tools-----------------------------------------------------------------29
14. Emergency and Safety Equipment---------------------------------------------------30

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9/22/2021
CHAPTER 1
Business Profile
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CHAPTER I
BUSINESS PROFILE
A. NAME OF THE COMPANY

Our Tote Bags are created with ease and proficiency, as well as being simple to
use and cost effective for our consumers. Facile is derived from the Latin words Facere,
which means "to do" or "to make," and Facilis, which means "to be easy," and so
meaning "to be simple." Although we often associate the word facile with negative
connotations, when the terms facile and tote bag are combined, positive meanings
emerge, such as simple yet fashionable, user-friendly, easy to carry, and multi-purpose.
Even if it only leads to a basic development, the company will ensure that the product
and services are of high quality. The sellers want to make a product that appeals to
everyone's tastes and preferences. As tote bags have grown in popularity, particularly
among millennials who are fans of Korean pop and actors/actresses, it is an ideal time
to create new designs as a strategy to innovate and recreate such Tote bags with the
preferred design of potential consumers.
B. NATURE OF THE BUSINESS

The nature of Facile Tote Bags' business is a mix of merchandising and
manufacturing. They will primarily accept retail or wholesale printing services for tote
bags, as well as market their own tote bag designs as products.
C. COMPANY VISION AND MISSION STATEMENTS

Vision Statement
To be the leading manufacturer of environmentally sustainable tote bags for our
country and the globe, with a strong worldwide presence.
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Mission Statement
Facile Tote Bags strives to create environmentally friendly, low-cost, high-quality
tote bags that may be used instead of plastic bags. It is a brand of fashion and creativity
that satisfies and encourages customers to reduce, reuse, and recycle.
D. COMPANY OBJECTIVES (Short term and Long term)

Short Term
 To establish a positive and harmonious relationship with the customers and
residents or Rodriguez, Rizal.
 To maintain positive working relationships with all of our neighbor
businesses and suppliers.
 To be the preferred printing company in Rodriguez, Rizal and surrounding areas,
supplying customers with high-quality, well-designed goods.
Long Term
 For the next five years, our company's goal is to be the main provider of well-
designed printed tote bags in Rodriguez, Rizal and surrounding areas.
 Our company aims to be one of the best in the Philippines, with Filipinos adoring
us and eventually enabling us to export our products.
 To be able to succeed for a long run in the market and to surpass competitors.
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E.
COMPANY LOGO
Figure I.
Facile Tote Bags specializes in customized Tote Bags that appeal to all tastes,
particularly those of millennials. Using printing machines and manual services, our
company assures that we will create an adorable, interesting, and exceptional quality of
designs to the customer's desire and condition.
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Pastel color - The three pastel colors of our logo represent openness and
relaxation. These colors are soothing and have even been linked to mental wellbeing.
Pastel colors are calm and relaxing, and they represent neutrality.
Blue color - The blue pastel indicates creativity.
Violet color – The violet pastel represents imagination.
Pink color – The pink pastel suggests a dynamic business.
Heart – The little heart symbol beneath the company name denotes a simple yet
appealing style that will certainly appeal to clients.
Tote Bag – Finally, because our company is selling tote bags, the figure of a
bag is evidently attractive to be included in the logo.
F. CAPITAL CONTRIBUTION
The initial capital of the partnership will be P90,000, derived from capital contribution
of each of the six partners. The partners will also agree on and include the following
initial capital contribution in the articles of partnership:
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Figure II.
G. FORM OF BUSINESS
Six partners have formed Facile Tote Bags, a limited partnership. Except for
partner Laica Kasuyo, who volunteers as a general partner, the partners will agree and
declare in the articles of partnership that all partners' claims of liability are limited and
that they are not enforceable to claim their personal resources with respect to the
partnership's liabilities.
H. LOCATION OF THE BUSINESS
Figure III.
The first Facile Tote Bags location will be at Kasiglahan Village's market (Brgy.
San-Jose, Rodriguez, Rizal). It is the ideal location for management to conduct their
everyday company operations. They selected that area because there is currently no
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business in the market that provides the same product. The location is ideal because it
is in the center of a densely populated area. It also offers a great environment and has
attracted a large number of visitors.
I. PRODUCT DESCRIPTION
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Figure IV:
 Tote bags can be used to carry daily necessities. We may use it whenever we
want since it is dependable and handy. This can be worn almost anywhere: at
work, on a weekend getaway, or even on a shopping trip. Because of the
spacious design, you can store all of your valuable belongings while on the go.
9/22/2021
 Muslin cloth (katsa) with a standard size of 13"x 15" will be used as the fabric
material. The design will be printed using a sublimation print type with a
maximum print size of A4 size (8.3" x 11.7").
 The best aspect is that the customer may customize the tote by choosing,
creating, and applying their own design to it. By placing the desired design on our
personalized tote bags, everyone may showcase their creativity.
CHAPTE
TECHNICAL ASPECT
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CHAPTER II
TECHNICAL ASPECT
A. INTRODUCTION
This chapter focuses on the entity's technical flow as well as the area in where
and how it operates. The purchasing and manufacturing process, production facilities,
the layout of the office or storage where raw materials and finished goods are stored,
the entity's suppliers, the operating hours and days, the list of tools, and proper waste
disposal are all included.
Facile Tote Bags is a combination of manufacturing and merchandising that
bases the majority of its final product design on customer customization. The partners
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anticipate that there would be a limited source of revenue from wholesale and retail
orders from customers in the early years of the business, thus they will manufacture
their products based on their own design modifications. In the same early years, the
majority of their earnings will come from sales of their own products.
B. PURCHASING UP TO PRODUCTION PROCESS

These sections cover proper data collection, vendor/supplier selection,
merchandise evaluation, negotiation (which includes a trade discount and a purchase
discount), merchandise purchasing, actual merchandise acquisition, and the final
phase, which is actual production based on the designs.
Data Collection Vendor/Supplier Selection Negotiation
Ready Your Design Merchandise Acquisition Merchandise Purchasing
Create Your Design Print Your Design Cut Out Your Design
Press the Product Set the Substrate & Prepare the Heat Press
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Transfer in Place
Adjust the Pressure

Set the Time
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Place in packaging
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Figure V:
i. Collecting of information
This is the initial step in the purchasing and handling of merchandise. Following
the formulation of the company's overall merchandising plans, detailed information on
current market demands and possible vendors is necessary.
ii. Vendor/supplier selection

Following the collection of information about consumer demands, the following
step is to identify potential merchandise suppliers and communicate with them to look
for potential vendors. And then assess the vendor’s merchandise quality.
iii. Negotiation
After evaluating the product's quality and other features, the next step is to
negotiate a price and other terms and conditions with the vendor. Both parties pay close
attention to each other and ask inquiries if they have any doubts. The terms and
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conditions are then agreed upon, and a contract is created that includes the total
amount to be paid, the delivery date, the delivery terms, and other legal aspects.
iv. Purchase of merchandise
After discussing the terms and conditions and agreeing on a price, the order size
(quantity and quality of each merchandise category) is placed, and the initial money is
paid according to the agreement.
v. Acquiring merchandise
It implies that once the invoices have been paid, the merchandise and stock
should be properly delivered.
vi. Ready your designs

Once you've decided on a product and a niche, it's time to get down to business.
If you're a talented designer, you'll likely have an advantage over those who aren't. Just
remember not to copy and paste other people's work; it's both unprofessional and
unlawful.
vii. Production process

The production process of the company starts when all necessary materials
needed is obtained.
viii. Create your design
After finishing your design, develop a computer layout of it using graphic design
software. Make sure to consider the size and color of the ink.
ix. Print your design
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Depending on the product and application, the customized design is printed
using inkjet ink, pigment ink, or sublimation ink on special heat sublimation transfer
paper.
x. Cut out your design

Using a craft knife trim your image or design to make it neat.
xi. Prepare the heat press

Open the press and separate the heat platen from your heat pad and leave it
open while your heat platen is warming up.
1. Adjust the Pressure - the pressure of the press is based on the thickness of the
fabric; thicker fabric requires less pressure. For most projects, medium or high
pressure is used
2. Set the Time - this is important because there are different times associated with
different types of heat transfer.
xii. Set the substrate & transfer in place

Position your product onto the plate and place the transfer paper face up on the
desired location of your product within the pressing area.
xiii. Press the product

Once your product is in place, close the press by pulling the handle down to clamp
the press shut. By now your time, temperature and pressure should be set, so it’s as
easy as pressing the start button.
xiv. Remove the film
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After the
timer goes off simply open the press and remove the film while the transfer paper is still
hot and your design should be printed onto your product. Don't forget to use your gloves
before touching any hot items.
xv. Quality control
After the design has been transferred to the product, it is time for quality control
and packaging.
xvi. Place in packaging
Place it in a clean and appealing package once it has passed quality control.
C. PRODUCTION FACILITIES
Figure VI:
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OFFICE/STORAGE LAYOUT
WORKPLACE DIVISION AND
DESIGNATION
Reception
The place where the appointed
personnel inform the customer about the design and item's overall details. Also, the
person who will assist customers with the prices of each customized item and the total
order amount.
Finance Area
Receipts and payments will be kept in this section. Once the transaction with the
receiving area is good, the customer may pay the finance in full or in installments. For
capital budgeting, finance staff should oversee cash inflow and outflow.
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Stock
Room Area
The area where staff are assigned to manage inventories and check for
shortages and surpluses. The employees will also be in charge of contacting the
supplier for the products specified in the purchase order.
Editing Area
This is where the design editing will be processed and completed. When a
customer start asking question about the design's exact details as well as when it
should be completed, the assistant editor will be in the receiving area and will give it
over to the main editor.
Printing Area
This is the main area where customized design printing will take place. The
workers assigned to this job must ensure that all of the equipment and tools are in good
condition.
Output Area
This is where the customized orders will be placed. The personnel will organize
and label the packages, whether they are in wholesale or retail, with the recipient or the
customer's information.
Delivery
The delivery handler will inform the receiving area and the organizer of
processed products of the remaining amount and the recipient's information.
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D. SOURCES AND COST OF RAW MATERIALS
Figure VIII:
RAW MATERIALS DESCRIPTION AND USES
Sublimation Blanks
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These are the substrates or materials that will work with a process called
sublimation. The sublimation blanks shown above are the products or items that Facile
tote bag printing will sell.
Ink
The dye sublimation printing process, in which heat and pressure are used to turn
the ink directly into a gas without first liquefying it, is the basis for the definition of
sublimation ink. Because the ink becomes an integral part of the printed product and
does not fade or wash off over time, the high temperature allows it to transfer onto items
without migrating, cracking, or smudging. Sublimation inks therefore are highly reliable
and durable, in addition to the high level of accuracy that can be achieved with this type
of ink and printing technique.
Sublimation Paper A4 size

Sublimation transfer paper is a specialized paper that is only used in sublimation
printing. Made with a paper substrate that is broadly based on normal paper. A special
coating added to the paper holds the dye sublimation inks.
Note:
The shops listed above are the suppliers or source of raw materials that offer the
cheapest or most affordable prices for the items while maintaining the highest quality.
The prices are reasonable for those who are just starting out in the sublimation
business.
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E. OPERATION SCHEDULE
WEEKLY WORKING SCHEDULE
FACILE TOTTE BAG & PRINTING SERVICES
Figure IX:
From Monday to Saturday, the business will open at 8:00 a.m. and close at 5:00
p.m. Each employee will get a one-hour lunch break and a 30-minute coffee break.
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Production Schedule
Figure X:
This production schedule will serve as a guide and will apply for all department
employees to follow. According to the working schedule, orders placed within a week
must be completed within six working days. Every order must be processed and
completed in two days or less in order to maximize the number of orders each week.
F. WASTE DISPOSAL PROGRAM

Every business's environmental contribution is aided by its waste disposal
program. The 3Rs will be carefully followed by the organization (Reduce, Reuse, and
Recycle). The business will identify all used items that may be reused, such as plastic
bags, eco bags, and other items that the management believes are beneficial to the
business. They will also recycle all items that are intended for the waste but might be
reused if recycled, such as defective raw materials and finished goods.
To maintain the entity's healthy environmental contribution, all other items
classified waste shall be processed through the company's proper waste disposal
procedure. Reduce, reuse, recycle, identify waste materials, proper waste packaging,
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waste
delivery, and proper waste landfill disposal are all part of the company's waste disposal
program. The following is the company's waste disposal program:
Identifying Proper
Recycle
Waste Waste
and reuse
materials Packaging
Proper Waste
Disposal of
Waste in the Delivery to
landfill landfill
Figure XI:
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G.
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TOOLS AND EQUIPMENT
Figure XII:
TOOLS AND EQUIPMENT DESCRIPTION AND USES

HD Heat Press Machine (Sapphire)
This swing type heat press is light but heavy duty. Space saver. Digital screen
panel. This machine could transfer photos, words on cotton, fiber, metal, ceramic, glass,
etc. Suitable for producing gifts, advertisements and more.
EPSON L121 Printer

The most important equipment needed is the sublimation printer. EPSON L121
Printer is powerful, versatile, and affordable printers that best for sublimation paper
printing, it has a good printing quality.
Computer Set and Software
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Computer set doesn’t have to be fancy; it just needs to be able to run whichever
editing software that a business going to use. The Primo Merch and Printing Service will
use adobe photoshop as an editing software.
Paper Cutter
It is Used to cut card, photo paper, foil paper and others. Its paper guide to ensure
you get a right-angled finish and it also have securable sliding paper size marker
Flash Drive
Used to save file and other documents that was related to the business.
Craft Knife
It is ideal for cutting out intricate and detailed shapes due to its sharp, thin blade. It
can also be used to cut small or delicate materials accurately without causing any
damage
Thermal Tape
This heat resistant tape secures the paper to sublimation blanks to prevent shifting,
which can cause ghosting and ruin the transfer.
Tape Dispenser
Helps to save time because it eliminates the need to manually measure and cut
each individual piece of tape.
Gloves
Protect the hands from burns by wearing these when handling hot items
Note:
The shops listed above are the suppliers or source of tools and equipment that
offer the cheapest or most affordable prices for the items while maintaining the highest
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quality. The
prices are reasonable for those who are just starting out in the sublimation business.
H. OTHER SCHEDULES
Other schedule of the company consists of quarterly maintenance of the equipment,
registering the business name in the Department of Trade and Industry, obtaining
mayor’s
permit, obtaining of F identity number in the BIR, obtain barangay clearance, and
register the partnership in SEC.
1. QUARTERLY MAINTENANCE OF THE EQUIPMENT

The entity will conduct a quarterly maintenance of the equipment. It is made
quarterly to make sure that the equipment is working and giving the benefits that the
entity is expecting to receive.
Other schedules before conducting of operation:
2. Registration of the business name

The entity will register its business name to the DTI and will pay the fee online.
3. Obtaining mayor’s permit and barangay clearance

The entity will obtain a mayor’s permit by making an appointment and going to the
municipality of Rodriguez, Rizal and by paying the fee. On the other hand, barangay
clearance will be obtained in the main barangay headquarters.
4. Obtaining of tax identity number in the BIR
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All
businesses have their own tax identity number which is required by the BIR to ensure
that every business paid a proper amount of tax
5. Register the partnership in SEC

The last thing that the company will do is to register its partnership itself to the SEC
to make the partnership exist juridically. To register in the SEC, the company will file
some requirements like articles of partnership.
6. Other Cost / Expenses

A. Monthly Rental – 5,000
B. Utilities Expense
 Electricity Expense – 3,000
 Water Bill – 1,000
 Telephone & Internet Expense - 2,000
C. Legal Requirements
I. Registration of Partnership to SEC

i. Verify or reserve your proposed name - Php 100.00/reservation for 30
days
ii. Present Articles of Incorporation and By-laws. – The filing fee is 1/5 of the
1% of the Partnership’s capital but not less than Php 2,000.00 plus 1% of
the amount as legal research fee
II. Barangay Business Clearance - Php. 500
III. Mayors Permit - 500
IV. Business Registration At BIR

i. Annual Registration Fee (ARF) – Php. 500
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ii. Documentary Stamp – Php 1 for every Php 200 of capital
D. Machineries Maintenance – Php 10,000
CLEANING MATERIALS/TOOLS
Figure XIII:
EMERGENCY AND SAFETY EQUIPMENT

Figure XIV:
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CHAPTER
3Marketing Aspect
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CHAPTER III
MARKETING ASPECT
A. INTRODUCTION
The ultimate goal of marketing is for producers to exchange goods and services
with customers. The purpose of marketing is to communicate the value of a product or
service to the customer through positioning. The term "marketing" has evolved over
time; nowadays, it encompasses all actions that occur before, during, and after the
development of a product, as well as all activities that occur after the product has been
sold to customers. It all starts with identifying and satisfying the wants of the clients.
Identifying a target market through market research and segmentation, as well as
knowing client buying habits and giving higher value.
B. INDUSTRY BACKGROUND
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As
time passes by, different products and businesses are being introduced in the market
and as we engaging in the modern era, businesses take it as an opportunity for them to
introduce their unique product. Tote bags are pretty famous nowadays and its demand
is continued to arise due to influence of different nations especially by those Koreans
and Koreans pop idols. Tote bags industry is an upgraded version of selling a sling bag
and handbag that has an advantage due to its big space and a passionate design. It is
also one of the suggested businesses because it promotes a healthy environment
because it replaces the work of a traditional plastic bags that has a bad effect on the
environment. This section provides an information about the entity’s target market, the
method used to gather data, how the partners compute for the sample size for their
respondents, as well as the determination of the target population wherein the sample
size is based.
C. TARGET MARKET
The target market of this feasibility is limited only into two barangay and the
partners have chosen the Barangay San Jose and Barangay San Isidro.
Population
The population of these two barangays were derived from the internet and this
data is the only available and latest data that gather by the municipality of Rodriguez
Rizal based on the official site of Philatlas (https://www.philatlas.com). The population of
Barangay San Jose and Barangay San Isidro are 141,819 and 159,612 respectively.
https://www.philatlas.com/luzon/r04a/rizal/rodriguez/san-jose.html
https://www.philatlas.com/luzon/r04a/rizal/rodriguez/san-isidro.html
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Sample
Size
The Sample size of this feasibility is derived using sloven formula:
N
n=
( 1+ N ) ( e )2
Wherein:
n = sample size
N = population (Barangay San Jose and Barangay San Isidro)
e = Marginal error
San Jose population = 141,819
San Isidro population = 159,612
Total population:
141,819 + 159,612 = 301,431
N = 301,431
e = 5%
141,819+159,612
n=
( 1+301,431 ) (.05 )2
301,431
n=
( 301,432 ) .0025
301,431
n=
( 301,432 ) .0025
301,431
n=
753.58
n=399.99∨400 respondents
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D.
SWOT Analysis of the company (Internal and External Environment)
STRENGTH WEAKNESS
 Strong brand loyalty/Customer  Improper line balancing
loyalty  Lack of inventory control
 Relative consistence number of  Idling of production line/time
buyers  Relatively low productivity
 Well trained highly motivated team  Higher wastage
 Regular skill development,  Lack of maintenance of records
programs and workshops  Loyalty among suppliers is low
 Market leadership position  Niche market and local monopolies are
INTERNAL
 Wide geographic presence decreasing

 Success of new product mix  Business model are easily imitated
 First mover advantage in the  Low brand awareness by
community customers/potential customers
 “What you see is what you get”  Aesthetic look of bags
warranty  Low awareness of the “What you see is
 Design and quality what you get” warranty
 Relative ease to purchase; online
and physical store
 Good and responsive customer
service
EXTERNAL
OPPORTUNITY THREATS
 Local collaboration  Distrust of institutions and increasing
 Rapid expansion of the need for Tote threats of legal actions
bags  Competitive pressure
 Lowering of the cost of product  Changing demographics
launch  Shortage of skilled human resources
 Technology innovation and  Threat from other full scale bag
advancement businesses competitors
 Opportunities in online space  Established competitive brands
 Increase overall brand awareness  Low-priced comparable products
 Create promotional sale campaigns  Low consumer confidence equals a
to increase sales decrease in sales
 More innovative designs  Production costs rising
 Word-of-mouth marketing/referrals
 Bigger presence in the international
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market
E. SWOT Analysis of Competitors

Strength Weakness Opportunity Threats
 Strong public  Outdated  Product and  Change of
image style and service customers’
 Product design expansion taste
Product Quality  Rise of trend  Market
consciousness demand
 Attractive
packaging
Reasonable Changes of  Competitive Increase of
and Affordable price Price production
Price Price depending on cost
size of
product
 Stable and  Limited  Located in  Number of
known Distribution community competitors
location  Cannot area. around the
Place accommodat area
e orders from
distant
location
 Use social  Lack of social  Strengthen Limited
media to media social media budget
reach a wide followers page Inadequate
Promotio range of  Inaccessible  Use of cost- promotion
n clients. to a larger effective direct strategy
 Provide a audience market
promotional
package
People  Deep  Less  Change in  Customer
knowledge awareness of fashion change of
and expertise customer  Personnel preference
of personnel about the trainings to
in production business boost their
process skills.
 Provide
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positive
feedback
F. Pricing Strategy
According to the survey that we have conducted with price range of 70 pesos to
100 pesos selling price of one tote bag, the following are the results of how many
respondents considered our selling price range:
■ PHP 70
■ PHP 80
■ PHP 90
■ PHP 100
■ Others - 8.4%
It shows that it is more likely considerable for people who are familiar with the
product to have one with 70 pesos selling price. We will be using the cost-0based
pricing approach to come with the selling price (Total cost of the product + Profit
margin).
G. PROMOTIONAL STRATEGY
Advertising and promotional campaigns are one of the most significant factors
that the company should consider. The technique in which a company is introduced to
the market determines its popularity. The management must have an efficient and
informative marketing and promotional campaign in order to draw the attention of
potential buyers. The following are the promotional strategies that the company will
employ:
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Tarpaulin – The partners believe that using tarpaulin to promote the product will
have a significant influence on the company's popularity. These materials will be
displayed in public areas in order to increase the company's exposure and attract more
potential customers.
Social Media platform - For businesses of all sizes, social media is a powerful
tool for reaching out to prospects and customers. It consists of activities such as posting
text and image updates, videos, and other content that promotes public engagement.
The sellers agree that using social media to promote their business makes it easier to
attract more customers.
Shopee - Shopee works to meet rapidly changing consumer wants and uses
personalization to ensure that its clients and buyers remain loyal after the epidemic.
Shopee has always merged shopping with social media. By creating a strong
community that allows users to connect and interact with one another, the platform
offers immersive experiences. The sellers claim that promoting and marketing their
products on Shopee would bring in more potential customers and help their business
grow.
SURVEY RESULTS AND DATA ANALYSIS

Age Number of responses Percentage
18 and above 119 29.8%
19 to 24 250 62.5%
25 to 30 16 4%
31 to 36 6 1.5%
37 and above 9 2.2%
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TOTAL 400 100%

Distribution of questionnaire to respondents according to age:
Age
2537toand
31 to above
3036
4%2% 2%
18 and below 18 and below
30%
19 to 24
25 to 30
31 to 36
37 and above
19 to 24
63%
ANALYSIS:
Based on the table and graph above, out of four hundred (400) respondents, one
hundred nineteen (119) of them or equivalent to 29.8% are on the age of eighteen
below (18 and below), two hundred fifty (250) of them or equivalent to 62.5% are on the
age of nineteen to twenty-four (19 to 24), sixteen (16) of them or equivalent to 4% are
on the age of twenty-five to thirty (25 to 30), six (6) of them or equivalent to 1.5% are on
the age of thirty-one to thirty-six (31 to 36), nine (9) of them or equivalent to 2.2% are on
the age of thirty-seven above (37 and above). The data suggest that ages ranging to
nineteen to twenty-four (19 to 24) are more active in buying and more likely to purchase
the product based on their percentage level of 62.5%.
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Gender
34%
Female
Male
66%
Distribution of questionnaire to respondents according to age:

Gender Number of responses Percentage
Male 135 33.8%
Female 265 66.3%
TOTAL 400 100%
ANALYSIS:
According to the result of the questionnaire, out of four hundred (400)
respondents, one hundred thirty-five (135) of them or equivalent to 33.8% are male
while two hundred sixty-five (265) of them or equivalent to 66.3% are female. It
suggests that the majority of the respondents are female.
Distribution of questionnaire to respondents according to location:
Location Number of respondents Percentage

San Jose 221 55.3%
San Isidro (Montalban) 179 44.8%
TOTAL 400 100%
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Location
San Jose
45% San-Isidro (Montalban)
55%
ANALYSIS:
The table and the graph show that out of four hundred (400) respondents, two
hundred twenty-one (221) of them or equivalent to 55.3% are from San Jose,
Rodriguez, Rizal while the other one hundred seventy-nine (179) or equivalent to 44.8%
were residing in San-Isidro (Montalban), Rodriguez, Rizal.
Do you have any idea about Tote Bags?
15% Yes
Mo
85%
1. Do you have any idea about Tote Bags? (It appears to be a Korean-style eco
bag)?
Number of Responses Percentage
Yes 341 85.3%
No 59 14.7%
TOTAL 400 100%
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Tel. No: (02) 8997- 9070
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ANALYSIS:
The graph and table suggest that three hundred forty-one (341) out of four
hundred (400) respondents or equivalent to 85.3% have idea about Tote Bags while
fifty-nine (59) or 14.7% do not have any idea about Tote Bags. This means that many
are familiar about our product.
Do find Tote Bag useful in everyday life?
11%
Yes
No
90%
2. Do you find Tote Bag useful in everyday life?

Number of respondents Percentage
Yes 358 89.5%
No 42 10.5%
TOTAL 400 100%
ANALYSIS:
According to the responses on the questionnaire, three hundred fifty-eight (358)
out of four hundred (400) respondents think that Tote Bag are useful in everyday life.
On the other hand, forty-two (42) of the respondents found it not useful in everyday
life.
3. Do you appreciate the name “Facile Tote Bags”?

Number of responses Percentage
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Tel. No: (02) 8997- 9070
smmc.edu.ph
Yes 350 87.5%

No 50 12.5%
TOTAL 400 400%
Do you appreciate the name

"Facile Tote Bags"?
13%
Yes
No
88%
ANALYSIS:
Based on the table ang graph, three hundred fifty (350) of the respondents or
87.5% of them appreciates the name Facile Tote Bags, while the remaining fifty (50) or
12.5% did not appreciate the name.
Will you purchase the item if it's on the market?
11%
Yes
No
90%
4. Will you purchase the product if it’s on the market?
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Number of Respondents Percentage

Yes 358 89.5%
No 42 10.5%
TOTAL 400 100%
ANALYSIS:
Based on the table ang graph presented above, three hundred fifty-eight (358) or
89.5% out of four hundred (400) respondents are willing to purchase that product (Tote
Bag) if it’s already available on the market. 10.5% or Forty-two (42) of them on the other
hand, answered “NO” as an implication of not willing to purchase the product.
if we offer you personalized design,

will you buy the product (Tote Bag)?
6%
Yes
No
94%
5. If we offer you personalized design, are you willing to buy the product?
Yes 375 93.8%
No 25 6.3%
TOTAL 400 100%
ANALYSIS:
Based on the table and graph presented above, out of four hundred (400)
respondents, three hundred seventy-five (375) or equivalent to 93.8% are willing to buy
Tote Bag if we offer them personalized Tote Bags. Twenty-five (25) or 6.3% on the
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smmc.edu.ph
other
hand, are still not willing to acquire the product even we offer them personalized Tote
Bags based on their own preferred design.
What kind of design do you like for your tote bag?
5%
22%
Assorted
Prefer Design
Others
74%
6. What kind of design do you like for your Tote Bag?

Assorted 86 21.5%
Your favorite style or prefer design 294 73.5%
Others: 20 5%
Anime
Assorted
Cartoon Character
Organic
Customized
Plain
Abstract
Minimalist
Nature
Missionary
Aesthetic
TOTAL 400 100%
ANALYSIS:
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Tel. No: (02) 8997- 9070
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The
table and the graph above show that possible customers would want their Tote Bags be
designed to: Assorted, 21.5% or equivalent to 86 respondents; Their favorite style or
prefer design, 73.5% or equivalent to 294 respondents; lastly, 5% of the respondents or
equivalent to 20 participants are saying that they would want their Tote
Bags be designed to either Anime, Assorted, Cartoon Character, Organic, Customized,
Plain, Abstract, Minimalist, Nature, Missionary, and be it Aesthetic. This implies that
Tote Bags are known to many people and many others are willing to purchase the
product in customized and in their own preferred design.
7.
What is the best price you are willing to pay W
for this product?
70
8% 80
90
26% 45% 100
Others
7%
13%
hat is the best price you are willing to pay for this product? (Per-piece basis)
Number of Respondents Percentage
70 180 45%
80 53 13.3%
90 28 7%
100 105 26.3%
Others: 34 8.4%
20
25
30
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smmc.edu.ph
35
50
60
79
120
150
160
150 to 200
200 above
TOTAL 400 100%
ANALYSIS:
According to the table and graph presented above, one hundred eighty (180) or
45% out of four hundred (400) respondents are willing to pay seventy pesos (P70) for a
piece of Tote Bag. Fifty-three (53) respondents on the other hand are willing to pay for
eighty pesos (P80). Twenty-eight (28) participants are willing to pay ninety pesos (P90),
one hundred-five (105) respondents are willing to pay one hundred pesos (P100), and
thirty-four (34) of them are suggesting their own price for a piece of Tote Bag. The
following are the suggested price of the possible customers: Twenty (20), twenty-five
(25), thirty (30), thirty-five (35), fifty (50), sixty (60), seventy-nine (79), one hundred
twenty (120), one hundred fifty (150), one hundred sixty (160), one hundred fifty to two
hundred (150 to 200), two hundred above (200 above). Meaning, possible consumers
are willing to pay for a piece of Tote Bag from minimum price of seventy pesos (P70) up
to one hundred pesos (P100). Possible customers are more likely to pay for seventy
pesos (P70) as shown in the graph and table with the greatest number of respondents
to answer.
8. How many pieces will you consider purchasing for this product?
Number of respondents Percentage
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smmc.edu.ph
1 179 44.8%
2 140 35%
3 43 10.8%
4 33 8.3%
Others: 5 1.1%
5
20
50
TOTAL 400 100%
How many pieces will you consider purchasing for this

product?
8% 1% 1
11% 2
3
45% 4
Others
35%
ANALYSIS:
The table and the graph show that out of four hundred (400) participants, one
hundred seventy-nine (179) or 44.8% of them are considering to buy one (1) Tote Bag
upon release on the market, one hundred forty (140) or equivalent to 35% are willing to
purchase of two (2) Tote Bags upon release, forty-three (43) or 10.8% of the
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Tel. No: (02) 8997- 9070
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respondents are considering to buy three (3) pieces upon release, and others are
suggesting their own quantity like five (5), twenty (20) and fifty (50). This implies that
possible consumers are more likely to buy one (1) Tote Bag upon release of it based on
the percentage level of the responses.
9. Will you buy our item again if we satisfied you with our product and your
preferred design?
Yes 390 97.5%
No 10 2.5%
TOTAL 400 100%
Will you buy our item again if we satisfied you with our
product and your preferred design?
3%
Yes
No
98%
ANALYSIS:
Based on the table and the graph, 97.5% which comprised of three hundred
ninety (390) respondents out of four hundred (400), are willing to purchase the product
for the second time when the sellers satisfied them in a way that their preferred design
is done well. 2.5% comprised of 10 respondents have answered “NO” on the questions,
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which
indicates that they are not willing to repurchase the product.
10. How frequently will you purchase the item?

Daily 25 6.3%
Weekly 57 14.2%
Twice a week 32 8%
Monthly 217 54.3%
Others: 69 17.2%
Yearly
Semi-Annual
Twice a day
Quarterly
One time only
TOTAL 400 100%
How frequently will you purchase the item?
6%
17%
14% Daily
Weekly
8% Twice a week
Monthly
Others
54%
ANALYSIS:
Based on the table and graph presented above, twenty-five (25) respondents out
of four hundred (400) will purchase Tote Bag daily, fifty-seven (57) of them have
answered that they will purchase the product weekly, thirty-two (32) respondents are
willing to purchase the bag twice a week, two hundred seventeen (217) of them will
47
Tel. No: (02) 8997- 9070
smmc.edu.ph
purchase Tote bag monthly. The remaining sixty-nine (69) possible customers have
suggested other options not mentioned on the choices. This indicates that possible
customers are willing to purchase Tote Bag monthly.
11. Are You willing to share it to your family, friends, colleagues, etc.?
Yes 358 96.3%
No 15 3.7%
TOTAL 400 100%
Are you willing to share it to your family, friends, colleagues,

etc.?
4%
Yes
No
96%
ANALYSIS:
Based on the graph and table presented above, three hundred eighty-five (385)
respondents or equivalent to 96.3% out of four hundred (400) have answered that they
are willing to share the product to their relatives, friends, and colleagues. While 3.7% or
fifteen (15) respondents are not willing to do so. The sellers believe that the business
will grow through the help of the customers by spreading and sharing Facile Tote Bags
to others.
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Tel. No: (02) 8997- 9070
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Yes 253 63.2%
No 147 36.8%
TOTAL 400 100%
12. Are you willing to buy in bulk and be our reseller if we offered reselling of our
products?
Are you willing to buy in bulk and be our reseller if we

offered reselling of our products?
37% Yes
No
63%
ANALYSIS:
The data show that two hundred fifty-three (253) or equivalent to 63.2% out of
four hundred (400) respondents are willing to buy in bulk or in whole sale. One hundred
forty-seven (147) or 36.8% have no interest on buying in wholesale. This data shows
the level of percentage for the business to accept resellers.
13. Are you willing to recommend our product to any resellers you may know?

Yes 377 94.3%
No 23 5.8%
TOTAL 400 100%
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Tel. No: (02) 8997- 9070
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6%
Yes
No
94%
ANALYSIS:
Based on the data above, three hundred seventy-seven (377) respondents are
willing to recommend Tote Bag to their known resellers on their respective places.
Twenty-three (23) out of four hundred (400) are not willing to recommend the product to
their known resellers. The data implies that through recommendation, the name of the
business will be known public.
14. What is your preferred purchase transaction?

Physical store 152 38%
Online 248 62%
TOTAL 400 100%
What is your preferred purchase transaction?
38%
Physical Store
Online
62%
50
Tel. No: (02) 8997- 9070
smmc.edu.ph
ANALYSIS:
The graph and tables show that out of four hundred (400) respondents, one
hundred fifty-two (152) or equivalent to 38% preferred to purchase the product in
physical store. On the other hand, two hundred forty-eight (248) or 62% are more likely
to buy the product at Online stores.
15.
What do you believe is the most effective method of product promotion?
01%
2%3% %
Online Advertisement (Social Media)
Flyers
Brochures
All of the above
Others
94%
What do you believe is the most effective method of product promotion?

Online Advertisement 377 94.3%
(Social Media)
Flyers 8 2%
Brochures 12 3%
All of the above 1 0.2%
Other: 2 0.5%
TV Commercial
TV Broadcasting
TOTAL 400 100%
ANALYSIS:
The table and graph show that the majority of the responses have answered that
online advertisement or through social media is the best and effective method of
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promoting the product. Three hundred seventy-seven (377) or 94.3% out of four
hundred (400) respondents have agreed on it. Eight (8) have answered flyers, twelve
(12) for brochures, one (1) or .02% answered all of the above and the remaining two (2)
people or .5% suggested their own product promotion method.
DEMAND AND SUPPLY ANALYSIS
This section provides an information pertaining to the company’s qualitative and
quantitative data like questionnaires, tabulation of the result of the questionnaires, and
necessary data starting from the consumer’s willingness to buy up to the demand-
supply analysis.
WILLINGNESS TO BUY (Barangay San Jose and Barangay San Isidro)
The partners arrived at 400 respondents and their response was gathered by
sending them the link one by one to ensure that the study is complied with the health
protocol. As a result, 94% of the respondents are willing to buy and only 6% of the
respondents are not. Needless to say, there are no refusal from the respondents as to
their willingness to buy the product.
Based on the data from the question:
“If we offer you personalized design, are you willing to buy the product?”
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DAILY DEMAND
Based
on the survey, the estimated daily demand per week is 47 units while the daily demand
per month and per year are 1,128 units and 13,536 units respectively.
TWICE A WEEK DEMAND
Based
on the survey,
there are an estimated 31 respondents that would buy a total of 528 units per month
and a total of 6,336 units on a yearly basis

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smmc.edu.ph
WEEKLY DEMAND
Based
on the survey,
the estimated weekly demand in a monthly basis is at 572 units while the estimated
yearly demand is at 6,864 units.
SEMI- MONTHLY DEMAND
According to
the survey, the estimated volume demand in a semi- monthly basis is 96 units and the
estimated monthly and yearly demand are 192 units and 2,3014 units respectively.
MONTHLY DEMAND
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Tel. No: (02) 8997- 9070
smmc.edu.ph
According to the survey, the estimated monthly demand is at 364 units while in a yearly
basis, it has an estimated sales volume of 4,368 units.
SUMMARY OF DEMAND: TOTE BAGS
To summarize,
there are a total monthly demand of 2,784 units and a yearly grand total of 33,408 units.
SUPPLY ANALYSIS
The partners have gathered necessary data from both indirect and direct
competitors wherein it showed that there are 2 direct competitors which are the PIXME
print that has a yearly estimated demand of 7,200 units and the TRONIX which has an
estimated yearly demand of 8,640 units. Lastly is the Indirect competitor of the company
which is the Cam2print that has an estimated yearly demand of 6,720. Overall, there are
a total of yearly estimated demand of 22,560 units from both direct and indirect
competitors.
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Tel. No: (02) 8997- 9070
smmc.edu.ph
DEMAND-SUPPLY ANALYSIS
According
to the demand-supply analysis and due to high demand of the in-trend products and
also as a result of conducted survey, the estimated starting gap for the year 2022 is at a
volume of 10,848 units and it is estimated to increase by 10% yearly.
PROJECTED SALES IN QUANTITY AND PESOS
The estimated sales of the business for the year 1 is computed by the estimated
percentage of unit sold which is 95% of the demand gap then multiply by the estimated
selling price which is 121 pesos. The partners also estimated that the sales will go up by
15% in the first year and a stable 10% annual increase in its sales. The reason behind
the 5% excess sales in the first year is that all the unsold portion (5% of demand gap)
will be sold for the next year’s sales.
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57

SMMC Feasibility Study on Facile Tote Bags Manufacturing Business

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SMMC Feasibility Study on Facile Tote Bags Manufacturing Business

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San Mateo Municipal College

Gen. Luna St., Guitnang Bayan I, San Mateo, Rizal

Presented to College of Business and Accountancy

San Mateo Municipal College

San Mateo, Rizal

In Partial Fulfillment of the Requirement

for the Bachelor of Science in Accountancy

MANLAPAZ, DIANE JOY

RAMOS, MICAH NATHANIELLE

Mr. Geno C. San Jose, CPA, MBA

CHAPTER 1: BUSINESS PROFILE ------------------------------------------------------------------1

Name of the Company -------------------------------------------------------------------------2

Nature of the Business ------------------------------------------------------------------------2

Company Mission -------------------------------------------------------------------------------2

Company Vision ---------------------------------------------------------------------------------3

Company Logo -----------------------------------------------------------------------------------4

Capital Contribution ----------------------------------------------------------------------------4

Form of Business -------------------------------------------------------------------------------5

Location of the Business ---------------------------------------------------------------------5

Product Description ----------------------------------------------------------------------------6

CHAPTER 2: TECHNICAL ASPECT -----------------------------------------------------------------7

Purchasing Up to Production Process----------------------------------------------------8

Sources And Cost of Raw Materials------------------------------------------------------16

Waste Disposal Program---------------------------------------------------------------------21

Tools and Equipment ------------------------------------------------------------------------23

CHAPTER 3: MARKETING ASPECT --------------------------------------------------------------31

Breakdown of Cost of Goods Sold--------------------------------------------------------

Breakdown of Operating Expenses-------------------------------------------------------

SWOT Analysis of Company----------------------------------------------------------------51

SWOT Analysis of Competitors------------------------------------------------------------52

Result of survey in Google Forms--------------------------------------------------------57

1. Company Logo --------------------------------------------------------------------------------4

2. Capital Initial Contribution

4. Sample product offering--------------------------------------------------------------------6

5. Purchasing Up to Production Process ------------------------------------------------9

7. Office/Storage Layout ---------------------------------------------------------------------13

8. Sources and Cost ff Raw Materials ---------------------------------------------------16

9. Operation Schedule ------------------------------------------------------------------------18

10. Production Schedule ---------------------------------------------------------------------18

11. Waste Disposal Program ---------------------------------------------------------------22

12. Tools and Equipment --------------------------------------------------------------------23

Cleaning Materials / Tools-----------------------------------------------------------------29

14. Emergency and Safety Equipment---------------------------------------------------30

A. NAME OF THE COMPANY

preferred design of potential consumers.

B. NATURE OF THE BUSINESS

bags, as well as market their own tote bag designs as products.

C. COMPANY VISION AND MISSION STATEMENTS

country and the globe, with a strong worldwide presence.

that satisfies and encourages customers to reduce, reuse, and recycle.

D. COMPANY OBJECTIVES (Short term and Long term)

residents or Rodriguez, Rizal.

 To maintain positive working relationships with all of our neighbor

 To be the preferred printing company in Rodriguez, Rizal and surrounding areas,

supplying customers with high-quality, well-designed goods.

designed printed tote bags in Rodriguez, Rizal and surrounding areas.

us and eventually enabling us to export our products.

 To be able to succeed for a long run in the market and to surpass competitors.

designs to the customer's desire and condition.

Blue color - The blue pastel indicates creativity.

Violet color – The violet pastel represents imagination.

Pink color – The pink pastel suggests a dynamic business.