Business: Barber Shop Business

Business Name: Frontmen Barbershop

A. General Market Description

The goal for all barbering industries is to be successful and make all their

customers get the haircut/hairstyle they want. In recent years the barbering

industry has been slowly increasing throughout the years despite of the

economic problems. The proposed business will located at near at the central

market as it can attract more customers. The services can be customized

depending on the customers hair cut preference.

B. DEMAND

The demand of a Barbershop is high, especially to men’s. No matter where

you are, there will always be a demand for a barber shop for the simple reason that

the hair will not stop growing. With this in mind, take advantage of the fact that

everyone needs a haircut and consider up a Barbershop in our community.

Figure 1. DEMAND FIGURES DATA

Year Local Foreign Total Remarks

2018 120 125 245 High

2017 115 117 232 High

2016 100 109 209 High

2015 98 102 200 Moderate

2014 81 94 175 Moderate

Source: www.barbershop.com
Table 1. Shows that there is a progress of demand for a barber shop every year from

2014 up to 2018 both local and foreign.

Table 2. PROJECTED DEMAND FIGURES

Year of Operation Total Projected Demand

2023 230

2024 260

2025 290

2026 320

2027 350

Table 2. Shows that the business projected demand by the year 2023 will be 230 of

barber shop and it will continue to increase slowly by 30 each year as the demand for

barber shop will rise due to the presence of more male need a good hair cut.

Table 3. SENSITIVITY ANALYSID ON DEMAND

Pessimistic Original Demand Optimistic

Year 20% Decrease in Original Demand 20% Increase in

Demand Demand

2023 210 230 250

2024 240 260 280

 2025 270 290 310

2026 300 320 340

2027 330 350 370

C. SUPPLY

Table 4. SUPPLY FIGURES DATA

GEOGRAPHICAL SOURCES

Year A B C Total Remarks

2018 120 61 79 260 High

2017 100 40 70 210 High

2016 94 37 67 198 Moderate

2015 80 39 63 177 Moderate

2014 76 31 53 160 Moderate

Table 5. PROJECTED SUPPLY FIGURES

Year of Operation Total Projected Supply

2023 300

2024 330

2025 375

2026 400

2027 420
As shown in the table below, the projected supply of barber shop for year 2023 reaches

400 customer and increases by 30 customer until 2027.

Table 6. SENSITIVITY ANALYSIS ON SUPPLY

Year Pessimistic Expected Optimistic

20% Decrease Original 20% Increase in

Supply Supply

2023 280 300 320

2024 300 330 300

2025 355 375 395

2026 380 400 420

2027 400 420 440

D. DEMAND AND SUPPLY ANALYSIS

Table 7. Demand Supply Analysis

Past

Year Demand Supply D-S GAP Present

(1) (2) (3) (4)x(2)-(3) Unsatisfied

(5)*(4)(2)*100(/)

2014 175 160 15 8.5/9

2015 200 177 23 11.5/12

2016 209 198 11 5

2017 232 210 22 9

 2017 245 260 15 6

Projected

2023 230 300 70 30

2024 260 330 70 27

2025 290 375 85 29

2026 320 400 80 25

2027 350 425 75 21

As shown in table 5, the demand us always higher than the supply making the business

to easy participate in the market in the past 5 years. The percent unsatisfied is quite

near or similar to each other while in the projection of 5 years the percent unsatisfied

increases because the demand for the product also increases over time.

E. General Marketing Services

These are some local and nationals policies that could affect and assist in the

marketing of a product.

Philippine Trade Policy and Competition

The Philippines has been an active supporter of the WTO and the interests of the

developing countries while it is fully committed to the realization of an ASEAN economic

integration. Since the mid-1980s it has undertaken major trade reforms to liberalize its

trading sector and open up its economy except for sensitive areas such as agriculture and

selected manufactures. The Philippines is also a keen supporter of AFTA and has fulfilled its

tariff reduction commitments in time, with few exceptions. Although bilateral FTAs outside of
AFTA have initially been a cause of concern, there is now a growing realization by the

Philippine Government that these extra-ASEAN trade deals are practical strategies to

pursue given the increasing competition in the international market. The policy-making

process has been slow and cautious due to the populist nature of the Philippine

Government and the adoption of an inter-agency approach to decision-making. The

prospect for greater trade liberalization highly depends on whether the Philippines can

overcome the current challenges facing its economy.

Trade Liberalization and Competition

Trade liberalization promotes free trade, which allows countries to trade goods without

regulatory barriers or their associated costs. This reduced regulation decreases costs

for countries that trade with other nations and may, ultimately, result in lower consumer

prices because imports are subject to lower fees and competition is likely to increase. 

Increased competition from abroad as a result of trade liberalization creates an

incentive for greater efficiency and cheaper production by domestic firms. This

competition might also spur a country to shift resources to industries in which it may

have a competitive advantage. 

However, trade liberalization can negatively affect certain businesses within a nation

because of greater competition from foreign producers and may result in less local

support for those industries. There may also be a financial and social risk if products or

raw materials come from countries with lower environmental standards.

Government Policies, Regulations and Competition Policy

This section discusses government policies and Regulations with direct impact on

Competition. They are direct government interventions which control either entry into

the market or some aspects of operation in the market or both in general, these includes

✓ Government regulation of an industry or a segment on it.

✓ Direct government equity participation, and

✓ Other regulatory restrictions

Industrial Policy

Industrial policy involves a national plan and government involvement, ranging from

pronounced to weak, for helping industries, including increasing and protecting their

jobs. Industrial sectors and government agencies are coordinated in selected activities,

and the former receive protections, grants, loans, and tax incentives for particular

businesses. The developing counties benefit from such policies, and the developed

countries have gained from it across time (Altenburg, 2011). In the United States, the

Internet, satellite technology, and various forms of transportation benefit from industrial

policy. However, especially when labeled as such, the policy is ideologically

controversial, including regarding growth in jobs.

Environmental Policy and Regulations

environmental law became a field substantial enough to occupy lawyers on a full-time

basis. Since then, federal and state governments have passed numerous laws and

created a vast network of complicated rules and regulations regarding environmental

issues. Moreover, international organizations and agencies including the United

Nations, the World Bank, and the World Trade Organization have also contributed

environmental rules and regulations.

Future Competitors and Marketing Strategy

Competition is not just another business that might take money away from you. It can

be another product or service that's being developed and which you ought to be selling

or looking to license before somebody else takes it up.

Another focus strategy is to target niche market segments with specialized product

lines. As with the difference between cost-leadership and a price-centered focus

strategy, a niche-market focus differs from a differentiation strategy by its specialization

on highly customized offerings that target specific market subsets.

I will make sure that Frontmen Barber shop will be ready from these struggles and think

a better way to handle uncertain issues and situations regards to my business.

F. PROPOSED MARKETING PROGRAM

These are some of national and local government marketing policies and assistance

packages and program that could benefit the proposed business.

INDUSTRY-SPECIFIC POLICIES AND REGULATIONS WITH DIRECT IMPACT ON

COMPETITION

Industry Regulatory Bodies/ Functions/Objectives

Implementing

Agencies
Banks and Financial Bangko Sentral ng Supervision & regulation of

Institutions Pilipinas (BSP) the financial

institutions---restriction on

the grant of

commercial bank licenses;

Conduct

monetary policy thru open

market

operations, imposition of

reserve

requirements &

rediscounting transactions;

Issue currency, lending to

other banks & the

government; manage

foreign currency

reserves;

Determination of the

exchange rate policy

Insurance companies Insurance Commission Regulation---promulgate

(IC) and implement

rules & regulations

governing insurance
 institutions, license

insurance firms,

brokers, agents and

rehabilitate delinquent

insurance companies;

Supervision--- examine the

financial

condition of insurance

entities, review their

premium rates and

evaluate their financial

reports

Adjudication on the

insurance industry

Power generation Department of Energy Establish and administer

(DOE) programs for the

exploration, transportation,

marketing,

distribution, utilization,

conservation,

stockpiling, and storage of

energy resources

of all forms,, whether

 conventional or non-

conventional;

Regulate private sector

activities relative to

energy projects as

provided for under

existing laws;

Land Vehicles Land Transportation Prescribes and regulates

Franchising and routes of service,

Regulatory Board economically viable

capacities and zones.

Other regulatory restrictions

The other regulatory restrictions could range from explicit restraints to entry

requiring firms to obtain permit or license to operate in a particular market to stringent

procedural and other requirements making entry to a market difficult. These include

among others:

a. Local Government Code provisions on licensing and zoning,

b. Lengthy and cumbersome bankruptcy and insolvency laws forming exit

barriers,

c. Labor Code provisions which restrict flexibility of firms to downsize or

shut down also forming exit barriers,

d. Intellectual property rights protection,

e. Government procurement policy, and

f. Business registration requirements.

The following are the proposed product mix and marketing mix strategies

Target Market

The potential customers of the proposed business are those men’s who want a good

look, a customers who want to look more presentable.

Sales Force

For every customer, there will be one person who will be assisting them for every

question they were going to ask.

Market Research and Development Program

R&D allows a company to stay ahead of its competition. Without an R&D program, a

company may not survive on its own and may have to rely on other ways to innovate

such as engaging in mergers and acquisitions (M&A) or partnerships. Through R&D,

companies can design new products and improve their existing offerings.

Product Mix Strategies

The proposed business includes hair cutting, hair coloring and many more that suits to

every customers satisfaction.

Market Timing and Scheduling

Market timing is a type of investment or trading strategy. It is the act of moving in and

out of a financial market or switching between asset classes based on predictive

methods. These predictive tools include following technical indicators or economic data,

to gauge how the market is going to move.

Pricing Policies

The prices of the proposed business will depends on the services. We are accepting

discounts to students and senior citizen.

Terms and conditions of Sales

The barber must be good to every customer and make them feel comfortable. Give the

services that they want and make them feel better. Only cash will accepted! The said

business will open 8:00 am till 5:00 pm.

Channel of Distribution

The proposed business will using direct products and utensils to our customers.

Transportation and Delivery Strategies

The proposed business will having home service to those customer who cannot go to

our shop, most especially to those person with disabilities.

Branding and Packaging Strategies

The proposed business will having home service to those customer who cannot go to

our shop, most especially to those person with disabilities.

Advertisement and Promotion Strategies

The proposed business will having home service to those customer who cannot go to

our shop, most especially to those person with disabilities.

Storage and Warehouse Strategies

The proposed business will having home service to those customer who cannot go to

our shop, most especially to those person with disabilities.

Physical Distribution Strategies

The proposed business will having home service to those customer who cannot go to

our shop, most especially to those person with disabilities.

G. PROJECTED SALES

Table 9. Projected Selling Prices

Year Branches

2023 Php 100, 000

2024 Php 180, 000

2025 Php 250, 000

2026 Php 450, 000

2027 Php 800,000

There are extended branches around Bicol Region, there is advancement of

equipment and shop.

Table 10. Projected Sales for Large Scale Operation on Barber Shop
Year Production Price of Total Sales

Capacity Services

2023 20 Php 120 Php 2,400

2024 30 Php 120 Php 3,600

2025 50 Php 120 Php 6,000

2026 60 Php 120 Php 7,200

2027 70 Php 120 Php 8,400

Table 11. Sensitivity Analysis

Year Pessimistic Expected Optimistic

(20% Decrease) (Original) (20% Increase)

2023 Php 2,200 Php 2,600

2024 Php 3,400 Php 3,800

2025 Php 5,800 Php 6,200

2026 Php 7,000 Php 7,400

2027 Php 8,200 Php 8,600

H. System and Forms Design

 Marketing Flow of Operations

To demonstrate your barber shop’s ability to succeed as a business, a strong

management team is essential. Highlight your key players’ backgrounds, emphasizing
those skills and experiences that prove their ability to grow a shop. Ideally you and/or
your team members have direct experience in the barber shop business. If so, highlight
this experience and expertise. But also highlight any experience that you think will help
your business succeed.

Flow Chart of Proposed System

The Flow chart of Proposed System are similar to Marketing of Flow Operations but it is

more specific. Operations Management is responsible for managing the resources and
processes defined by the Operations System and utilized in operations for the creations

and delivery of value to customers.

San Jose Community College

San Jose Malilipot Albay

FrontMen Barbershop
Feasibility Study

Submitted by:
Jojie Bata
BSBA FM 4A

Submitted to:
Mrs. Cherry Lantican
Instructor