Business Plan Semi Final 1

Quezon City Polytechnic University
BACHELOR OF SCIENCE IN ENTREPRENEURSHIP

San Bartolome Campus
QUEZON CITY POLYTECHNIC UNIVERSITY
TERRESCENT COMPANY
A Business Plan Presented to the Faculty
of the College of Entrepreneurship
In Partial Fulfillment
Of the Requirement for the Degree
Bachelor of Science in Entrepreneurship Major in Marketing
By:
Shiela O. De Leon
Jeanly A. Baloran
CarminaRobenos
Mary Joy V. Cardona
Ma.RizaSalaguste
Katrina LauriceSia
Ely Carl San Juan
Camille Althea Tambongon
Jerica Marie T.Remontal
Janette Ocampo
Ivy Balean
S.Y. 2014-2015
I. Project Highlights
1- Business Name
2- Business Address
3- Nature of Business
4- Forms of Ownership
5- Proponents
6- Mission
7- Vision
8- Core Values
II. Executive Summary
1- Marketing Aspect
2- Technical Aspect
3- Organizational Aspect
4- Financial Aspect
III. Marketing Plan
1- Product Description
2- Market Situation
IV. Target Market
1- Demand
2- Supply
3- Demand and Supply Gap
4- Target Market Percentage
5- Market Share
V. Marketing Strategies
1- Objective
2- Product Strategies
3- Place Strategies
4- Price Strategy
5- Promotion Strategy
VI. Technical Plan
1- Plant Location
2- Process Description
3- Process Flow
4- Property, Plant and Equipment
5- Layout
6- Production Schedule
VII. Organizational Plan
1- Legal Form
2- Articles of Partnership
3- Manpower
VIII. Financial Plan
1- Project Cost
2- Projected Income Statement
3- Projected Cash Flow
4- Projected Balance Sheet
5- Financial Analysis
I. Project Highlights
Business Name: TerreScents Enterprise
Business Address: Unit #9 Maria Rosario Homes , MCB1 Subdivision,

Brgy. San Agustin, Novaliches Quezon City.
Nature of Business: Manufacturing Business
The process of converting raw

materials, components, or parts into finished
goods that meet
a customer's expectations or specifications.
Manufacturing commonly employs a man

machine setup with division of labor in a
large scale production.
Forms of Ownership: General Partnership
In the commercial and legal parlance of

most countries, a general partnership (the basic
form of partnership under common law), refers to
an association of persons or an unincorporated
company with the following major features:
 Created by agreement, proof of existence and estoppel.

 Formed by two or more persons
 The owners are all personally liable for any legal actions and debts the company may
face
It is a partnership in which partners share equally in both responsibility and liability .
Proponents:
General Manager: Shiela O. De Leon
Production Manager: Katrine Laurice Sia
Finance Manager: Jeanly Baloran
Marketing Manager: Mary Joy V. Cardona
Production Assistant: Ma. RizaSalaguste
Production Staff: Carmina Robenos
Ely Carl San Juan
Finance Staff: Camille Althea Tambongon
Marketing Assistant: Jerica Marie Remontal
Marketing Staff: Janette Ocampo
Ivy Balean
Mission: To improve the quality of life of college students

by uplifting their physical, mental & emotional
well-being through the use of aromatherapy.
Vision: TerreScents envisions itself to be one of the leading

manufacturers of Aromatic oil in the Philippines
starting in Quezon City that meet the customer’s
expectations through operation excellence after five
years.
Core Values:
 P-assion– We are passionate and committed to what we are doing and we

give our full best in creating the product for the benefit of our customers.
 O-ptimist- We always look at the positive side of life, because in business
not everything that happens is in favor of us. So it is important that we
should always be optimistic at all times.
 S-ocial responsibility- We did not focused only on profit maximization but
we also think of the society as well. It is our duty to act for the benefits of
the society as a whole.
 I-ntegrity- It is one of the important core values that a firm should have.
We should be honest and have strong moral principles so customers can
give its full trust to us.
 T-eamwork- As what the saying goes, “No man is an island”. It is
important that each member of the group should function and do its
assigned task in order for the goals established to be accomplished.
 I-nspiration- Since we are college students and we experienced these kind
of discomforts, we are inspired to create something that will addressed this
problem for the benefit of us and our potential customers.
 V-irtue- We pursue moral excellence in everything we do.
 E-xcellent customer service- We are committed in providingexcellent
customer service to our customers. We make sure that we give the best
experience to our customers starting from their purchase up to the last
drop of their consumption of the product.
Executive Summary
Marketing Aspect
The project involves in the industry of Essential Oil Making which is specifically
made to serve as an alternative remedy for the most common discomforts being
experienced by college students. These products come in 3 great scents that has its own
purpose which includes the following: Eucalyptus Oil, Rosemary Oil, and the Peppermint
Oil. It will be called TerreScents.
The business will target college students with ages 16-20 years of age. These are
the common ages of college students who face a stressful life as they prepare themselves
for their future career. Our product will be sold through direct marketing but we will put
up a pop up store that will serve also as our refilling station for customers who would
have liked their empty bottles to be refilled. The price of our product will mainly depend
on the type of oil to be used. In order for our customers to be aware of our product, we
will use streamers, fans and a mascot to let our customers know of what are product is
and also to attract potential customers.
Technical Aspect
The project will be set up at the residence of the proponent in Unit #9 Maria
Rosario Homes, MCB1 Subdivision, Brgy. San Agustin, Novaliches Quezon City. It is a
closed area where we are going to create our product and to ensure its high quality and
zero defects. We set up a quality control checker that will check if the products are
damaged free.
The main ingredients for manufacturing TerreScents will be the three basic oils;
Peppermint, Eucalyptus and Rosemary oil together with its carrier oil, the Sweet Almond
Oil. For its bottle, we used a 10ml roll on bottle and we cover it with a special paper with
its label, description and ingredients as well. The business will be requiring these
equipment’s; beaker, graduated cylinder, stirring rod, pipet/ dropper, laminating machine,
bottle, specialty paper, laminating sheets and chords.
Production of TerreScents Oil will be done twice a month with an interval of one
week. For the first year of production, the total number of goods will be 3,300 units. The
number of products to be manufactured in the succeeding year will increase by 50% or
may vary depending on the sales of the preceding year.
Organizational Aspect
The business will be a general partnership wherein all partners are liable in the
assets and liabilities of the organization. It will be registered as BMBE to avail of tax
exemption privileges. All the proponents will make all the decisions and handle all the
aspects of operations.
Financial Aspect
The total project cost will be P35, 777.00 The General Manager will cater 10% of the
total capital and the remaining capital will divided among the remaining proponents.
Marketing Plan
Product Description:
TerreScents (Latin word: Scent from earth) TerreScents is a natural aromatherapy

line based on essential oils, having its own distinctive scents and therapeutic properties
that work to improve physical, mental and emotional well-being. A great option for
smelling sensational fragrances without the harsh effects from synthetic chemicals.
Available in an array of enticing roll on bottles with a health tip tag on it that promotes
healthy living among youths.
It comes in three great scents which serve as an alternative remedy to common

discomforts experienced by college students. These three scents include: Peppermint,
Rosemary and Eucalyptus.
Market Situation:
Natural Based products have grown popularity with consumers over the past
years. In an article of Euro Monitor International, a London based market intelligence
firm, health and wellness industry has a real term growth of 7.2% every year and is
projected to become a trillion dollar industry by 2017.The demand is the result of
growing health awareness among consumers.
In the Philippines, Bureau of Agricultural Resources shows 7.9% growth per year
in the wellness industry. To date, there are 158 Health and wellness related registered
companies in the country manufacturing natural and organic products, herbal and natural
personal care formulations, herbal food supplements and health services according to the
Bureau of Agricultural Research.
Notably, many Filipino consumers are purchasing products which are positioned
as a healthier alternative.
In Novaliches, along Quirino Highway, TerreScents has targeted the college students
who are specificallyaged 16, 17, 18, and 19. These teenagers are in the stage of career
preparation, making them prone to stress and pressures. These discomforts hinder their
efficiency in school and lessen their enthusiasm toward life. With the use of
aromatherapy oils, there are different scents to choose from for relieving stress and
drowsiness, improving memory and concentration. As well as relaxing the body and mind
making them fall asleep easily after the sleepless night of doing research paper, reviewing
for exam and cramming projects.
Target Market:
Young, health conscious and college students (specifically those who are 16, 17,18 and
19) who are in the main phase of career preparation and development causing them a lot
of pressures mentally, physically and emotionally.
Demand
Demand and Supply

Total Population in the * Potential
Market 18,377 Market
Sample Size 377 16 42/68= 61.76
17 65/79= 82.28
108/124=
% To Total Population 18 87.10
84/106=
16- 30.18% ( 1829/6060) 19 79.25
17-22.06% (1337/6060)
18-23.45% (1421/6060)
19-24.31% (1473/6060)
Demand Analysis Per Month

Age % to Total Population Population per Age Potential Market Estimated Buying Frequency Demand
16 30.18% 18,377 3,418 1 3,418
17 22.06% 18,377 3,336 1 3,336
18 23.45% 18,377 3,753 1 3,753
19 24.31% 18,377 3,540 1 3,540
We can see from the chart above, the 18 age group caters the largest demand among the 4
aged groups being surveyed.
Supply
Supply Analysis Per Month

Competitors 16 17 18 19
1. Ointment 235 274 418 404
2. Liniment 191 213 249 282
3. Herbal 191 213 567 310
Total 617 700 1234 996
Among our three major competitors, Ointment has supplied the greatest units, which is
1331, second is the herbal with 1281 units and lastly is the Liniment with 935 Units.
Demand Supply Gap
Demand Supply Gap per Month

16 17 18 19
Demand 3,418 3,336 3,753 3,540
Supply 617 700 1234 996
Gap 2,801 2,636 2,519 2,544
Among the four aged groups, 16 years aged has incurred the largest gap between the
demand and supply, which is 2,801 units.
Target Market Percentage
Target Market Per Month

16 17 18 19
DS Gap 2801 2636 2519 2544
Target Market Percentage % 3% 3% 3% 3%
Projected Sales Per Unit 84 79 76 76
Total Number of Units to be Produced Each Month (330) = (315+ (5%Buffer Stock) 15)
Projected Sales per Month:
Projected Sales Per Month

Patchouli
Peppermint 16 17 18 19
Projected Sales Per Unit 16
28 17
26 18
25 19
28
Projected Sales
Selling Price Per Unit 28
29 27
29 26
29 29
29
Selling
Sales Price 31
812 31
754 31
725 31
812 Total 3103
Sales 868 837 806 899 Total 3410
Rosemary
16 17 18 19
Projected Sales Per Unit 28 26 25 28
Selling Price 29 29 29 29
Sales 812 754 725 812 Total 3103
Total Sales Per Month 9616

Market Share
Market Share
10% 5%
Tablet
15% Ointment
50%
Liniment
Herbal
TerreScents
25%
Marketing Strategies
Objectives:
 To create brand awareness among our target market (college students generally at
the age of 16-19 years old) .
 To create market visibility using vigorous campaigns and promotions.
 To generate sales and gain market share.
 To anticipate future customer needs through customer feedback.
Product Strategies:
The product has various scents that provides natural healing power and includes a tag
with a health tip that promotes healthy living among youth. It also wants to create a
quality product from a high quality ingredient so that it could encourage its market to its
repetitive purchase.
Price Strategies
The business provides a product that is affordable and has a reasonable price
using all the inputs at a lower cost but maintaining good quality.
Place strategies:
We have decided to put up a pop-up store near SM Nova and inside the Nova
Plaza. We plan toput up our stores in those 2 places because we have seen that many
people, especially college students, pass by that place. There is a great potential that
many people may be aware of our product and then they might purchase it.
Promotion Strategies:
The business will promote the product using new technologies such as:
 World Wide Web

 Telecommunications
 Direct marketing
 Discounts
 Promos to attract customers
 Foldable Fans
 Bookmarks
Technical Plan
 Plant location
The production area of our product will be at Unit 9 Maria Rosario Homes MCB1
Subdivision Barangay San Agustin nearNovaliches Bayan Quezon City.
 Process description
Buy all the needed Materials
Prepare all the needed materials
Pick up essential oils the carrier oil (sweet almond oil)
Measure 4 ml of carrier oil
Then, measure essential oil
Make 16 drops of essential oils

Mix the carrier and the essential oil
Get the mixed oil through the use of syringe
Put the mixed oils into the bottle
Label the product
Quality check
Final product
Process flow Start

Buy all the needed Materials
Prepare all the needed materials
Pick up essential oils the carrier oil (sweet

almond oil)needed and the carrier oil (sweet
Measure 4 ml of carrier oil
Then, measure essential oil
Make 16 drops of essential oils
Mix the carrier and the essential oil
Get the mixed oil through the use of syringe
Put the mixed oils into the bottle
Label the product
Quality check
Final product
End
 Property, plant and equipment

Equipment
Beaker
Graduated cylinder
Stirring rod
Pipet dropper(medicine dropper)
Laminating Machine
 Layout
 Production schedule
Raw materials
Eucalyptus oil
Sweet Almond oil

(carrier 0il)
Peppermint oil
Bergamot oil
Rosemary oil
Bottle (5ml)
Specialty Paper
Laminating Sheets (PVC)

 Labor
PRODUCTION SCHEDULE
TERRESCENT ENTERPRISE
MONTHLY SCHEDULE
Perio
Stage Procurement From To Notes
d
June April • The production
•Essential oils 1 1 6 department buys the
2015 2015 days
( 24 raw materials ;
―Peppermint oil
hrs ) bottle, chord,
PVC sheet, Special
― Eucalyptus oil
paper and
―Rosemary oil special paper.
―Bergamot oil
• The marketing
―Sweet almond oil
department
formulated
•Bottles ( 5ml ) marketing strategies
and other needed
•Chord ( satin ) documents
•Specialty paper to produce the plan.
• PVC Laminating Sheet
Perio
From To Notes
Editing d
June June
8 17 4 • The marketing
• Designing 2015 2015 days department
( 12 were assigned to
and mixing oils hrs ) make the bottle
design and study the
formulation of
our product.
June June
19 22 4 • The production
• Transferring 2015 2015 days department
( 16 were assigned to do
Mixed oils and hrs ) the task.
Refilling
Perio
From To Notes
Inventory d
June June
23 30 8 The Production
2015 2015 days Department,
( 26 and the Finance
hrs ) department make
inventory.
90 hrs
Organizational plan
 Legal form
Legal Form
Licences, Permits and Registration Expenses

Type Of Business Permit Fees Transportation Expense
Barangay Certificate 200 20
Seminar 500 150
ARTICLES OF PARTNERSHIP
TERRESCENTS ENTERPRISES
KNOW ALL MEN BY THESE PRESENTS:
That we, undersigned, of legal age, citizens and residents of the Philippines, have
tis day voluntarily bind ourselves together for the purpose of forming a general
partnership, effective as of this date, under the terms and conditions herein after set
forth, and subject to the requirements of existing laws of the Republic ofthe Philippines.
AND WE HEREBY CERTIFY:
That the name of the partnership shall be “TERRESCENTS” and shall operate
and transact business under the said firm.
II
That the principal business address of the partnership shall be located at #9 Maria
Rosario Homes MCB1 Subdivision Barangay San Agustin Novaliches, Quezon City,
Philippines.
III
That the names and postal address of the partners are as follows:
NAMES NATIONALIT ADDRESS

Y
Sheila De Leon Filipino #12-I Narra St. Ibayo II BagbagNovaliches
Quezon City.
Jeanly A. Baloran Filipino Block 1, Unit 9, Maria Rosario Homes,

Barangay San Agustin, Novaliches, Quezon
City
CarminaRobeños Filipino 1028 riverside st. extension Unit IV
Commonwelt Quezon City
Mary Joy Cardona Filipino 160 Lagpitan St. Sauyo Road Novaliches
Quezon City.
Maria RizaSalaguste Filipino 63 Naga st.PaelBargy. Culiat, Quezon City
Katrina LauriceSia Filipino 20 Sta. Barbara St. GulodNovaliches Quezon

City
Ely carl San Juan Filipino # 33 Sta. Isabel St. GulodNovaliches Quezon
City
Camille Althea Filipino #59 Alley 3, 3-c Loans extension Brgy.

Tambongon Sangandaan Quezon City.
Jerica Marie Filipino #008 Matimtim St

Remontal SauyoNovalichesQuezonCity
JannetteOcampo Filipino # 18 A Zodiac St. RemarvilleSubd. Brgy.

BagbagNovaliches Quezon City
Ivy Balean Filipino #018 Abad Santos St. Santa LusiaNovaliches

Quezon City
IV
That the capital of partnership is PHP:FIFTY THOUSAND PESOS ONLY.

(P50,000.00) which has been contributed as follows:
Sheila C. De Leon P3,600.00
Jeanly A. Baloran P3,240.00
CarminaRobenos P3,240.00
Mary Joy V. Cardona P3,240.00
Ma.RizaSalaguste P3,240.00
Katrina LauriceSia P3,240.00
Ely Carl San Juan P3,240.00
Camille Althea Tambongon P3,240.00
JericaMarie T. Remontal P3,240.00
Janette Ocampo P3,240.00
Ivy Balean P3,240.00
That the purpose shall beengaged in selling Aromatherapy products
VI
That Sheila C. De Leon shall serve as the General Manager of the partnership,
JeanlyBaloran shall be the Finance Manager, Mary Joy Cardona shall be the Marketing
Manager, Katrine Laurice Sia shall be the Production Manager, Althea Camille
Tambongon shall be the Finance Assistant, Jerica Marie Remontal shall be the Marketing
Assistant , Maria RizaSalaguste shall be the Production Assistant, JannetteOcampo, Ivy
Balean, Katrina LauriceSia and Ely Carl San Juan shall be the staff of their respected
department.____________________________________________________________.
VII
That the profits and losses shall be divided according to capital ratio.
VIII
That ___________________
In witness whereof, we have here unto set our hands, this _____day of
___________at ______________-- Quezon City.
Ely Carl San Juan Ivy Balean
Katrina LauriceSia JannetteOcampo
Maria RizaSalaguste Jerica Marie Remontal
Camille Althea Tambongon
JeanlyBaloran Mary Joy Cardona
CarminaRobeños
Sheila De Leon
Signed in the presence of:
___________________ ___________________
Witness Witness
___________________
Witness
Acknowledgement
NOTARY PUBLIC
 Manpower
Financial Plan
Product Cost
Peppermint
Essential oil ( 16 drops ) 3.12

Carier oil ( sweet almond oil ) (4ml) 3.24
Menthol Crystals (4 drops) 0.2
Bottle 10
Bond paper 0.039
Cord 2
Laminating Machine 0.034
PVC laminating plastic 0.008
Expenses : Water 0.086
Electricity 0.043
Transportation 1
Allowance 1
Manufacturing Cost 20.77
Mark up percentage 50%
Mark up price 10.385
Selling Price 31.155
Rosemary
Bottle 10
Bond paper 0.039
Cord 2
Electricity 0.043
Transportation 1
Allowance 1
Mark up price 9.817
Patchouli

Bottle 10
Bond paper 0.039
Cord 2
Electricity 0.043
Transportation 1
Allowance 1
Mark up price 9.817
Refilling Cost
Peppermint

Transportation 1
Allowance 1
Mark up price 4.28
Selling Price 12.84
Rosemary

Transportation 1
Allowance 1
Mark up price 3.712

Patchouli

Transportation 1
Allowance 1
Mark up price 3.712
Total expenses
Materials Price
●Essential oil
─ Peppermint oil 3,900
─ Rosemary oil oil 6,500
─ Bergamot oil 6,500
─ Sweet almond oil 3,078
─ Menthol Crystals 270
Lamninating Sheet (PVC) 900
Bond paper 54
Chord 200
Total 21,402
Equipment
Beaker 800
Gradated Cylinder 1000
Stirring Rod 400
Pipet ( medicine dropper ) 85
Laminating Machine 2,995
Total 5,280
Other expenses
Seminar 500
Selling Expense
Daily allowance 50
Advertising 1,000
Streamers 500
Telecommunication 250
Transportation expense 1,000
Packaging 2,500
Total selling expense 5,800
Administrative expense 721
Total 6,521
Legal form
Licences, PermitsLicences,
and Registration
Permits Expenses
and Registration Expenses
Type of business permit Fees Transportation expense
Barangay certificate 200 20
Seminar 500 150
Sub total 700 170
Total 870
Project Cost 34,073
Contingency percent 5%
Contingency fund 1703.65
Project cost with contingency fund 35,777

Projected income statement
Projected Income Statement

Year 1 Year 2 Year 3
Total Sales 186,600 279900 419850
Less: Cost of Goods Sold 34962 204081 306121.5
Gross Profit From Sales 151,638 262419 393628.5
Less: Selling Expense 5900 189550 284325
Less: Administrative Expense 721 186960.5 280440.75
Net Income Before Tax 145,017 259108.5 388662.75
Less: Tax (Exempted as BMBE) 0 0
Net Profit 145,017 259108.5 388662.75
Projected cash flow

Projected Cash Flow
Pre-Operating Year 1 Year 2 Year 3
Cash Inflows
Owner's equity 46,000
Cash Sales 69000 103500 155250
Total Cash Inflows 46,000 69000 103500 155250
Cash Outflows
Pre-Operating Expenses
Materials Purchases
Selling and Administrative Expenses
Total Cash Outflows
NET CASH FLOW
Projected balance sheet
Projected Balance Sheet

Pre-Operating Year 1 Year 2 Year 3
Assets
Cash 46,000 69000 103500 155250
Total Current Assets 46,000 69000 103500 155250
Property, Plant and Equipment 5,280 7920 11880 17820
Net Property, Plant and Equipment 51,280 76920 115380 173070
Pre-Operating Expenses 0 0 0 0
Liabilities and Owner's Equity 46,000 69000 103500 155250
Total Liabilities and Owner's Equity 46,000 69000 103500 155250
Financial analysis
Financial Analysis
Ratio Year 1 Year 2 Year 3
Equity to assets
Gross profit to sales
Net operating income to sales
Net operating income to equity

Business Plan Semi Final 1

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Quezon City Polytechnic University

BACHELOR OF SCIENCE IN ENTREPRENEURSHIP

QUEZON CITY POLYTECHNIC UNIVERSITY

A Business Plan Presented to the Faculty

of the College of Entrepreneurship

Quezon City Polytechnic University

Of the Requirement for the Degree

Bachelor of Science in Entrepreneurship Major in Marketing

Mary Joy V. Cardona

Ely Carl San Juan

Camille Althea Tambongon

Jerica Marie T.Remontal

Business Name: TerreScents Enterprise

Business Address: Unit #9 Maria Rosario Homes , MCB1 Subdivision,

Nature of Business: Manufacturing Business

The process of converting raw

Manufacturing commonly employs a man

Forms of Ownership: General Partnership

In the commercial and legal parlance of

 Created by agreement, proof of existence and estoppel.

General Manager: Shiela O. De Leon

Production Manager: Katrine Laurice Sia

Finance Manager: Jeanly Baloran

Marketing Manager: Mary Joy V. Cardona

Production Assistant: Ma. RizaSalaguste

Production Staff: Carmina Robenos

Ely Carl San Juan

Finance Staff: Camille Althea Tambongon

Marketing Assistant: Jerica Marie Remontal

Marketing Staff: Janette Ocampo

Mission: To improve the quality of life of college students

Vision: TerreScents envisions itself to be one of the leading

 P-assion– We are passionate and committed to what we are doing and we

TerreScents (Latin word: Scent from earth) TerreScents is a natural aromatherapy

It comes in three great scents which serve as an alternative remedy to common

Demand and Supply

Demand Analysis Per Month

Supply Analysis Per Month

Demand Supply Gap

Demand Supply Gap per Month

Target Market Percentage

Target Market Per Month

Projected Sales per Month:

Projected Sales Per Month

Total Sales Per Month 9616

 World Wide Web

Buy all the needed Materials

Prepare all the needed materials

Pick up essential oils the carrier oil (sweet almond oil)

Measure 4 ml of carrier oil

Then, measure essential oil

Make 16 drops of essential oils

Mix the carrier and the essential oil

Get the mixed oil through the use of syringe

Put the mixed oils into the bottle

Label the product

Process flow Start

Buy all the needed Materials

Prepare all the needed materials

Pick up essential oils the carrier oil (sweet

Then, measure essential oil

Make 16 drops of essential oils