University of Perpetual Help System Laguna - JONELTA

Basic Education Department – Senior High School

I. INTRODUCTORY PAGE

This business plan discuss primarily the Glitz bag or also known as "tote bag" business in

the area of binan city of laguna. How Glitz bag become popular despite of many competitors and

the risk in running a business. Furthermore, this business plan will also discuss the role and

advantages and disadvantages of glitz bag business

The owners of the business are as follows:

Catindig, Kristine- Blk 5 lot 9, St. Francis 14, Balibago, Sta. Rosa Laguna

Delima, Johnly- 52-A Magsaysay Rd. San Antonio San Pedro Laguna

Geron, Jefferson- Gala St. San antonio Binan Laguna

Gregorio, Alexander-1017 Juan Luna St. Dela Paz, City of Biñan Laguna

Mananap, Charlene Mae- Blk 12 Lot 48 St. Joseph 10 phase 1 brgy. Langgam San

Pedro Laguna

Perez, Angelyn- 95 purok2 Bigaa, Cabuyao, Laguna

Rull, Angel Joice- Blk 44 Lot 16 Acacia St., Southern Heights 2, Brgy. UBL, San

Pedro, Laguna

II. NATURE OF BUSINESS

Glitz or tote bag is everywhere. Due to its increasing popularity in the fashion world, no

matter where you look may it be the mall, market or even in bazaars there is a guarantee you can

find one. In line with this, the aspiring entrepreneurs saw this as an opportunity to take advantage
 University of Perpetual Help System Laguna - JONELTA
Basic Education Department – Senior High School

of the growing demand on tote bags and to add an environmental twist. The product will be

produced using used pieces of cloth that is easily accessible to the entrepreneurs and to increase

the effort in reducing waste and also make something out of nothing to promote recycling.

SERVICE / PRODUCT DESCRIPTION

The Glitz bag is designed for aspiring environmentalists who prefer to reduce products

made from raw materials. It is made affordable that will give satisfaction to every buyer because

it has a quality which will be suitable to their standards. Moreover, every buyer can be “in” to the

trend without spending too much money.

CAPITALIZATION

The capital required for the partnership is Twenty Thousand pesos (P 20,000.00), which

has been contributed as follows: in the amount of Two Thousand and Eight Hundred Fifty Seven

and Fourteen Cents (P 2,857.14) Philippine Currency for each of the partners Catindig, Kristine

Delima, Johnly, Geron, Jefferson, Gregorio, Alexander, Mananap, Charlene Mae, Perez,

Angelyn and Rull, Angel Joyce contributed the said amount in the form of cash.

III. INDUSTRY ANALYSIS

FUTURE OUTLOOK TRENDS

As time goes by, many fashion style past through. People changed on how they dress

sometimes it depends on the fashion trend to keep themselves updated. Fashion world is like a

ball that keeps on rolling, the old trend becomes the new trend. It's just repeating over and over

again. Today, the fashion trend is the vintage or retro vibe with a little touch of modern style, and
 University of Perpetual Help System Laguna - JONELTA
Basic Education Department – Senior High School

the tote bag is having a big break as people appreciates how aesthetically pleasing the old world

fashion was. Tote bags is like an empty canvas that can be designed by the people or can be

made of many other materials.

As the fashion trends keep on changing many clothes are brought in to waste or will be

stock in the closet for how many years. Too much waste will harm the environment. So a great

way to lessen those clothes that will be in waste and will help the environment is managing a

recycled tote bag made by used and old clothes. In managing it connections is a must, the

product can be sell everywhere.

ANALYSIS OF THE COMPETITORS

Tote bags are the type of bag that is versatile, functional and fashionable that is

commonly used for shopping, work and school (Collins English Dictionary). An article of Tote

Bag Factory (2019) stated that on 17th century, when tote bags are first introduced where tote

means "to carry". During 1900s, it was still uncommon mostly in the United States. The

American Housewives on 1950's brought tote bag into fame. It became a fashion statement

wherein designer Bonnie Cashin made tote bags elegant. The advantages of tote bags are that it

can be use for grocery and shopping and it reduce the use of plastic and paper bags that helps to

avoid the negative impact of it on the environment (Green and Growing Organization, 2019).

Thomas (2018) emphasizes that tote bags does not harm the environment as it is biodegradable.

It can be recycled and reuse, and some of tote bags are made from recyclable materials. It

is also not a threat for animals because unlike plastics, it is not edible so it prevents animals from
 University of Perpetual Help System Laguna - JONELTA
Basic Education Department – Senior High School

digestive problems and physical injuries. Lastly, it is sturdier than plastic bags and it was made

from durable materials that will not easily break. According to Green (2013) recycling old

clothes can be beneficial to lessen the waste in landfills and it can be reused as bags, rags and

blankets. Planet Aid (2016) discusses 5 reasons to recycle old clothes. First, it reduce greenhouse

gases, second, it save landfill spaces, third, it conserve energy, fourth, it benefits people from

developing countries and fifth, it's easy.

ANALYSIS OF THE COMPETITORS

Table 1

Indirect Competitors

Competitors Tote bag price

Bench 649

Oxygen 349

Penshoppe 149

Art work 149

Glitz Bag 100

 University of Perpetual Help System Laguna - JONELTA
Basic Education Department – Senior High School

MARKET SEGMENTATION

Marketing consists of buyers, and buyers differ in one or more ways. They may differ in

their wants, resources, locations, buying attitudes and buying practices. Through market

segmentation, the proponents divide large heterogeneous markets into smaller segments that can

be reached more efficiently with products and services that match their unique needs. The

segmentation used by the proponents focused on the demographic aspect was the management

considered the following:

People range at 13 years old and above use this product because they want to be

fashionable when it comes to trends. This business will focus on the province of biñan Laguna

and other places who need this kind of product. Consumers can also order through online and

they can get a 20% discount if they buy more than three products. With the right method this

business can get high ratings.

Before we can find an appropriate place for our product we must first define the wants

and needs of a community. We will choose a place where we have no competitors selling the

same product to us. This product is available wherever you go and we can easily carry our

belongings with it. Women are more concerned about it because they tend to like this product. It

is important to know the interests, purchasing habits, and who will be the benificial of this

product. This product is needed by people who are always carrying a lot of things. Especially for

millenials who are also inclined to use tote bags rather than ordinary bags. Since it is made of old
 University of Perpetual Help System Laguna - JONELTA
Basic Education Department – Senior High School

clothes, consumers don't need to spend more money to buy this product So that the sellers will

pay attention to the communities that really need this product.

Loyalty status in which marketing envision brand loyalty status wherein shifting loyal are

customers who shifts loyalty from one brand to the other and by looking by at customers who are

shifting away from its brand, the company can learn about its marketing witnesses and attempt to

correct them.

MARKETING STRATEGIES

A marketing strategy was created to gain advantages in the marketplace, but one must

remain aware of the disadvantages of any given marketing strategy. It is the single biggest factor

which determines the success or failure of the business.

Glitz Bag is a recycled tote bag that have different design used in old clothes. Convincing

and attracting marketing strategies will be used to capture the attention of potential customers in

giving the best service in the town. In launching it, the proponents will take into account the

tactical marketing tools-product/service, price, place and promotion.

• Service- The proponents carefully planned the layout that will offer a better convenient

service for the tote bag lovers to be provided with the quality service they deserve. On

will be in an attractive to all people especially with millennials and it is Instagram able

product for potential customers. Another thing that will surely captivate the attention of

the costumers is, having a freebies like pouch, pencil holder etc. that is made with old

clothes and other marketing strategy

 University of Perpetual Help System Laguna - JONELTA
Basic Education Department – Senior High School

Product Uniqueness as a Differentiation Strategy in the competitive market

environment of today, consumers develop new needs and wants, which need to be met

and satisfied. To anticipate the shift in consumer preferences, firms launch unique

products or services in their effort to remain viable and competitive.

Product uniqueness focuses on the launch of products or services that aim to

satisfy unmet consumer needs. By developing a unique value proposition to create a

strong differential from competitors, firm aims at attracting more consumers and

achieving a better positioning on the competitive market. The value proposition should

skillfully integrate the increasing quality of prospective leads and market share and the

improvement of operational efficiency to attract consumers to enter into a relationship

with the firm. In that way, firms increase the perceived value of their products and

services relative to the perceived value of the products and services of their competitors,

achieving competitive advantage. Thus, having eco-friendly bag that would helps to our

mother nature is the great advantage.

• Place- Gli Abitti Collection having a store in Biñan, San Pedro and Sta. Rosa. And will

have a Facebook and Instagram account by searching Gli Abitti Collection, where it will

be easily accessible to the students, employees, and ordinary people.

• Price- Prices will be set reasonably. It will offer services deals which will include the

variety of tote bags at a reduced price.

 University of Perpetual Help System Laguna - JONELTA
Basic Education Department – Senior High School

Market penetration pricing involves setting a low initial price for the product or

service. Product is priced at minimum that will generate profit. The aim of this strategy is

to target the mass market immediately and win a large market share. This strategy can be

effective when market is price sensitive, when low price result to market growth. Finally,

low price must keep out competitive entry, on a longer period for price advantage.

• Promotion- the proponents will use different advertising tools to endorse Glitz Bag.

Flyers will be given to people who may be interested to avail this service. Posters will

also be posted in different social media. Signage will also be stalled at selected different

places.

In addition, the proponents will focus their attention on both the potential customers and

employees of the business. In doing this, they considered internal marketing and interactive

marketing as tactics. In internal marketing, an effective training and motivation with its

customers-contact employees and supporting service people to work as a team must be

conducted. In interactive marketing, an attention on the service deliver and the quality of the

delivery must be well thought-out.

Promotion is one of the market mix elements, and a term used frequently in marketing. The

specification of five promotional mix or promotional plan. These elements are personal selling,

advertising, sales promotion, direct marketing, and publicity. A promotional mix specifies how

much attention to pay to each of the five subcategories, and how much money to budget for each.

A promotional plan can have a wide range of objectives, including: sales increases, new product
 University of Perpetual Help System Laguna - JONELTA
Basic Education Department – Senior High School

acceptance, creation of brand equity, positioning, competitive retaliations, or creation of a unique

image. Fundamentally, however there are three basic objectives of promotion. These are:

To present information to consumers as well as others, to increase demand to differentiate a

product.

These are different ways to promote our product in different areas of media. Use internet

advertisement, special events, and endorsements.

PROMOTION

Promotion is one of the key elements, and a term used frequently in marketing. These

elements are personal selling, sales promotion, direct marketing, and publicity.

Advertising is one of the best marketing strategies, and promotion is one of the several

advertising tools. The promotional technique that the proponents will employ is the use of

advertising materials such as flyers that will be given away for people’s awareness of the

promos, and prices the Glitz Bag will offer. Posters will also be used and will be placed in

different areas to catch people’s interest. The proponents will also use internet in spreading

information to potential customers.

Promotional Tools No. of Unit Unit Cost Prices

Flyers 1000 .50 500

Signage 1 1000 1000

Poster 15 50 750

Social Networking Free Free Free

 University of Perpetual Help System Laguna - JONELTA
Basic Education Department – Senior High School

Sites

Total 2500

Table 2 shows the promotional strategies the proponents will use. The highest expense that will

be incurred is P 1, 000 for signage and the lowest expense will be P 500 for flyers.

MARKET AND SERVICE POSITIONING

The product involves a good and high quality tote bags that is a type of reusable bag can

be used over and over again. Referrals to it, safety check and environmentally friendly are

desirable components of the product. In marketing, positioning as quotation organized system for

finding a window in the mind is based on the concept that communication can only take place at

the right time and under the right circumstances (Jack Trout). It is a comparative competitive

strategy in positioning the product close to their competitors so consumers can make direct

comparison whey they purchase. The proponents choose the following program: Tie up with

other business and increase the awareness of the consumers by distributing flyers and by posting

in social media to increase the demand of the product

TARGET MARKET

Target market consists of a set of buyers who share common needs or characteristics that

the proponents decide to serve. Smart targeting helps companies to be more efficient and

effective by focusing on the segments that they can satisfy best and most profitably. Targeting

also benefits customers with offers carefully tailored to satisfy their needs.
 University of Perpetual Help System Laguna - JONELTA
Basic Education Department – Senior High School

The proponents aim to do business with and will direct their marketing strategies to the

women of all ages and have a great inclination to fashion and they think of everything that is

color coordinated. Glitz bag will gratify to serve this kind of individuals