BUSINESS PLAN
VIA’S FASHIONABLE
FACE MASK
I. EXECUTIVE SUMMARY
Via’s Fashionable Face Mask will offer unique, fashionable, and has good
quality face masks that will accommodate the needs of the people nowadays due to
COVID-19 in Bataan. Historical data show that there is an increasing demand for
face masks among the towns of Bataan. However, the existing 5 big competitors are
not able to meet such demand resulting to a big gap. This means that there is a big
unmet demand of the market in face masks. Our goal is to fill something to meet
the desired demand. One of our primary strategies is to offer customers variety of
options for choosing their own face masks. Fashionable face masks will be offered
in various colors and designs to give customers options. Customized face masks will
also be offered to some institutions like schools and offices. Our business will be
initially operating as a home-based enterprise and will use social media platforms
(like Facebook or Instagram) to advertise the colors and ready-made designs of the
face masks. Customers may have the options to pick up the products or have it
delivered at their convenience. Via’s Fashionable Face Mask has several unique and
competitive designs that will be used to its advantage to penetrate market.
Initial capitalization for the business is Php 27,000 good for one-month
expense. Expected revenue for 1 year is Php 290,280 while total cost for goods sold
amounted to Php 158,580, while the total cost of goods sold amounted to Php
158,580.
II. MANAGEMENT AND ORGANIZATION
A. Company Name: Via’s Fashionable Face Mask
B. Logo:
C. Address: #5380 Zamora St. Brgy. Poblacion, Mariveles, Bataan
D. Vision Statement: Via’s Fashionable Face Mask will be the leading provider
of unique, fashionable, and high-quality face masks that will accommodate
the needs of the people in Bataan.
E. Mission Statement: Via’s Fashionable Face Mask is a socially responsible
enterprise providing high-quality, unique, and reasonably priced fashionable
face masks which caters health needs of the people in Bataan.
F. Key Personnel: Owner/Manager
G. Work Force and Support Personnel: Sewer, helper
H. Organizational Chart:
Duties and Responsibilities:
1. Owner/ Manager – He/she oversees and manages the business. He/she
is responsible and accountable for every decision or action for the
business.
2. Advisory Council – They advise the owner in managerial aspects. They
must be knowledgeable on how the business runs. This position is on
call only.
3. Sewer – He/ She creates and makes the product.
I. Ownership: Sole Proprietorship
J. Capitalization: Php 27,000
K. Compensation and Incentives:
Employees’ Salaries:
Advisory Council – P500 (monthly consultation)
Sewer – P6,850 monthly (P10 x 685 pcs.) (weekend work)
Incentives:
13th month pay
Cash bonus
L. External Management Support: Parents
III. PRODUCT PLAN
A. Purpose of the Product
Via’s Fashionable Face Mask will offer the residents of Bataan, a unique, good
quality and variety of options for choosing their own face masks. There are
different colors to choose from. We can cater schools if ever they decide to have
color coding per grade level. For offices, we can provide customized face mask like
printing the name of the company or any designs they want.
B. Products Unique Features
Via’s Fashionable Face Mask shows its unique features. The first is the wide
variety of colors that customers can choose from. They can freely select the color
they want. The second is the printed designs of face mask. This is best for some
teenagers who are fashionable.
Below are the samples of face masks:
C. Material and Equipment Requirements and Sources of Supply
The material requirements and their sources are as follows:
MATERIALS SOURCES
Neoprene Fabric Fabric store in City of Balanga, Bataan
Sewing Machine Sewing supplies in City of Balanga,
Bataan
Sewing supplies and tools Sewing supplies in City of Balanga,
Bataan
Plastic for packaging Plastic store in City of Balanga, Bataan
Table 1 (Material requirements and their sources)
D. Production Process and Controls that will be used to manufacture the
product
Below is the process on how to make a face mask:
1. Create a pattern.
a. Draw patterns in different size (Small, Medium, Large and Extra Large).
b. Cut the pattern.
2. Transfer the pattern to the fabric, and then cut it.
3. Sew the cut cloth.
4. Trim the excess thread.
5. Pack the face mask in a clean plastic bag.
6. Add label. Print in small square paper the name and logo of the business.
Indicate also the sizes.
Neoprene mask is best used as a material for washable face mask. Neoprene
(also polychloroprene) is a family of synthetic rubbers that are produced by
polymerization of chloroprene (Wikipedia). This fabric is water resistant that can
protect us from the virus.
E. Distribution Logistics
Via’s Fashionable Face Mask initially operates as a home-based enterprise
and uses social media platforms like Facebook and Instagram to advertise the
colors and designs of the washable face masks. Customers may choose if they will
pick-up the item or it will be delivered at their convenience. For delivery, there
should be handling fee (Bataan area only) and shipping fee (outside Bataan). Fees
will be shouldered by the buyer. For bulk orders, (minimum of 100pcs.) free
shipping fee or handling fee is applied. Due to the crisis today, the washable face
masks will not be displayed in bazaars or school fairs.
F. Regulatory and Other Compliance Issues
Via’s Fashionable Face Mask will be registered as a single proprietorship type
of business to the Department of Trade and Industry (DTI). A barangay clearance
will also be secured before applying for a mayor’s permit to operate as a home-based
business micro enterprise. The Bureau of Internal Revenue (BIR) registration will
also be done after getting all the necessary registration documents and permits from
DTI, barangay, and mayor’s office.
IV. MARKET PLAN
A. Market Analysis which includes demand and supply vis-à-vis competitors
Historical
Total Supply: Previous 5 years Face mask sold Total
Data
Demand by the competitors per year Supply
(5years)
A B C D E
YEAR 1 15,834 1,114 500 2,065 950 1,962 6,591
YEAR 2 18,605 1,306 600 2,530 1,300 2,035 7,771
YEAR 3 23,400 1,438 700 3,000 1,400 2,480 9,018
YEAR 4 25,600 2,100 800 3,113 1,500 2,951 10,464
YEAR 5 100,000 8,350 1,200 11,580 2,100 8,635 31,865
Table 2 (Market Analysis)
B. Marketing and Sales
Projection Marketing Strategy
A competitive and encouraging campaign will aim to increase the visibility
for Via’s Fashionable Face Mask. This will focus on the customer’s desire to choose
colorful and printed washable face mask. Via’s Fashionable Face Mask will use
different channels to communicate this message.
a. Social Media – During this time of crisis, posting in social media is the
best way to communicate with other people. Via’s Fashionable Face Mask will be
active in social media like Facebook and Instagram to showcase and advertise the
product. This will be used in every transaction.
b. Online Resellers - Via’s Fashionable Face Mask will try to reach out
people in social media who are reselling products. As we have seen, it has a big
potential to widen the market. A linkage will be established so that they become
aware of the washable face mask.
C. Sales Strategy
Customers are always after their convenience. Via’s Fashionable Face Mask
sales strategy will assure that ordering and buying face mask is very easy, exiting,
and a great experience. In order to do this, the enterprise will create a website and
a Facebook page where customers can use to order and buy face mask at their
convenience. New designs will be uploaded from time to time to notify customers.
Electronic payment like bank-to-bank transfer and other remittance centers to
promote cashless transaction.
With these sales strategies, the company develops the customer’s excitement
to order and convenience to pay at their own pace.
D. Product Characteristics or Feature
Via’s Fashionable Face Mask has several competitive features that will be
used to its advantage to achieve market penetration.
Variety of colors – Customers will be offered 20 different colors of face mask
to choose from. Colors are divided into 2; pastel and dark colors. Pastel
colors include light colors such as yellow, pink, white, and others while dark
colors consist of black, navy blue, army green and so on.
Variety of prints – Customers will be offered with different designs. The
printed designs are also divided into two; for men and for women. These
printed designs are best for teenagers and for the adults who always follow
the trends.
Affordability – Because of the crisis today, many of us have limited income
but the urgent need of wearing face mask is also a must. It is favorable for
the customers to have access to inexpensive yet high-quality washable face
masks.
E. Pricing Policy
Via’s Fashionable Face Mask will adopt the differing price based on the size
and the design policy. As such, below is the pricing scheme that will be adopted:
Retail Price:
Size of Face Masks Price (Peso)
Small (fits to kids 3-7 yrs. old) 35
Medium (fits to teens 8-14 yrs. old) 40
Large (15 yrs. old above) 45
Extra Large (oversized) 50
Table 2.1 (Pricing Scheme-Retail Price)
Reseller Price:
Size of Face Masks Price (Peso)
Small (fits to kids 3-7 yrs. old) 31
Medium (fits to teens 8-14 yrs. old) 34
Large (15 yrs. old above) 37
Extra Large (oversized) 40
Table 2.2 (Pricing Scheme-Reseller Price)
F. Sales Projections
Table 2.3 (Sales Projections)
G. Market Analysis Summary
The demand for washable face masks in Bataan has shown steady increase
over the last 5 years. Because of the current crisis, face masks are very in demand
for all ages. To increase market penetration, Via’s Fashionable Face Mask will offer
variety of colors and printed designs of face masks. At the same time, competition
and encouraging marketing campaign will be done to increase the visibility of Via’s
Fashionable Face Mask using different types of social media and scouting potential
online resellers to widen the market. The enterprise offers price differential based on
the size and designs with the price ranging from Php 31-40.
V. FINANCIAL PLAN
A. Start-up Summary
685pcs. - Total
Expenses Cost/pc. Year 1
Qty./Month
Neoprene Fabric 85 5,865 70,380
(10 masks per yard)
Equipment 7,500 7,500 7,500
(Sewing Machine)
Utilities 2,000 2,000 24,000
(water, electricity and
Internet)
Labor 7,350 7,350 88,200
Miscellaneous 1,285 1,285 15,420
Permit and License 3,000 3,000 3,000
Total 27,000 208,500
Table 3.1 (Start-up Summary)
B. Financial Projections
Table 3.2 (Financial Projections – Income Statement)
Table 3.3 (Financial Projections – Cash Flow)
Table 3.4 (Sales Projections – Balanced Sheet)
