INTRODUCTION/ OVERVIEW

Filipino culture is a multifaceted tapestry made from a variety of

elements, including indigenous traditions, Malay origin, Spanish colonization,

and American influence. This unusual blend has transformed the Philippines

into a vibrant and energetic society with its own cultural identity.

Local Filipino artisans and businesses play an important role in

conserving and promoting this cultural legacy. These brilliant individuals and

businesses boost the country's economy while also highlighting the beauty and

distinctiveness of Filipino handicraft. One distinguishing feature of Filipino

craftsmanship is the emphasis on handcrafted and locally produced materials.

Many artisans get inspiration from their environment and incorporate natural

aspects into their work. For example, indigenous weavers frequently employ

locally grown fibers and natural dyes to create textiles that reflect both their

cultural identity and environmental sustainability.

Filipino craftsmanship has been practiced for generations. These

cultural icons, which range from vital equipment like pots and baskets for

transporting grains to creative symbols of our beliefs and superstitions, have

endured the test of time and are still in use today. Unfortunately, as time passes,

their recognized skills and talents are becoming too difficult to maintain and

may soon be forgotten. Global culture, as well as the prevalence of Western

products and media is overshadowing local traditions and goods. The

dominance of international brands results in the negligence of local crafts and

products. Aside from that, the limited access to market of the artisans and

businesses in the country creates challenges and issues such as distribution,

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marketing, and networking. The lack of support from the government in those

individuals contributes to the development and popularity of our local

entrepreneurs and artists.

It is important to preserve our culture to shape our identity, heritage, and

unity of the Filipino people. In order to address this problem, a platform that

promotes Filipino culture through the spirit of bayanihan is made. With the

concept of tapping the Filipino spirit of bayanihan, or communal unity, a

subscription-based service that promotes and source homegrown crafts and

goods from local producers and artisans, with the purpose of sharing the

enriched culture of different localities in the Philippines will emerge in different

online platforms.

PRODUCT AND SERVICE FEATURES AND DESCRIPTION

Product and Service Features

With the aim to help boost and preserve the Filipino culture through an

online market collaboration to local artisans, producers, and businesses, the

LokalCrate features the following:

1. Subscription Model: Customers sign up for a LokalCrate subscription,

choosing their preferred box size and frequency of delivery (e.g., weekly,

bi-weekly, monthly). The customer can also choose a one-time purchase

only.

2. Curated Products: Each LokalCrate is meticulously designed to offer a

diverse selection of basic items such as food, household necessities,

personal care products, artisanal goods, etc. These items are supplied
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 from local producers, farmers, craftsmen, and small enterprises

throughout the Philippines.

3. Support for Local Communities: LokalCrate focuses obtaining

products from local communities, which benefits small-scale producers

and craftspeople. This not only boosts the local economy, but it also

protects traditional craftsmanship and supports cultural heritage.

4. Customization and Personalization: Customers have the option to

customize their LokalCrate by indicating their preferences, dietary

restrictions, and specific needs. This ensures that each box is tailored to

the individual preferences of the customer. They will also be given

localities to choose from where they want the merchandise to come from.

5. Social Impact: A portion of the proceeds from each LokalCrate

subscription is allocated towards community development initiatives,

such as education programs, environmental conservation projects, or

healthcare initiatives, thereby creating a positive social impact.

6. Convenience and Accessibility: LokalCrate offers a convenient and

hassle-free shopping experience, as customers receive their curated

boxes directly to their doorstep. This eliminates the need for multiple trips

to the store and saves time for busy individuals and families.

7. Eco-Friendly Packaging: LokalCrate is committed to sustainability and

environmental responsibility. Packaging materials are eco-friendly and

biodegradable, minimizing the ecological footprint of the subscription

service.

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Product and Service Description

LokalCrate is more than just a subscription

box service – it's a platform that fosters community,

supports local businesses, and promotes social

and environmental sustainability, all while

delivering essential goods to Filipino households.

• `Website

• Sample Sizes of Box

These are the variety of the boxes where customers can choose from.

These boxes act as mystery boxes where the merchandise will be put in.

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 LEAN BUSINESS CANVAS

Problem Solution Unique Value Unfair Customer

Proposition Advantage Segments
The difficulty A local online Exclusive
of maintaining store/ market This Everyone in
and where LokalCrate Partnerships the Philippines
preserving customers can will boost the with local can be a
Filipino purchase local sales and artisans, customer.
culture crafts and popularity of producers, and Shipping is still
goods with a local artisans, businesses under
Filipinos variety to producers, improvement
supporting choose from. and Customization and is only
imported businesses and limited in the
goods rather and will foster personalization Philippines.
than local bayanihan to
ones. the Filipino Variety of
people. Options of the
Unpopular crafts and
and goods, as well
underrated as localities
local artisans, Key Metrics Channels
producers,
and Number of Online store
businesses Purchase or (website)
Subscription Online
platforms
(social medias
Number of such as
collaborations Facebook,
with local Instagram,
artisans, etc.)
producers, and
businesses

Cost Structure Revenue Streams

Packaging and Shipping Product Sales

Marketing Promotion Collaborations and Partnerships

Technology and Platform Costs Gift Services

Employee Salaries E-commerce Platform Fees

Taxes and Compliance

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Unique Value Proposition

LokalCrate is a unique concept that taps into the Filipino spirit of

bayanihan, or communal unity, to create a subscription-based service that

delivers essential goods and products to customers while supporting local

communities and small businesses. This will be a gateway to the vibrant culture

and craftsmanship of the Philippines, introducing local crafts and goods to the

Filipino people. This will help boost local artisans and businesses and become

more popular, with a tagline,” Experience the essence of Filipino culture, one

box at a time."

Unfair Advantage

In order to establish a sustainable and defensible position in the market,

the following distinctive edges and advantages of this business will be very

beneficial:

1. Exclusive Partnerships: Securing an exclusive partnership with local

artisans, producers, and businesses, LokalCrate will ensure a constant

and unique supply of handcrafted products and goods that cannot be

easily replicated by competitors.

2. Customization and Personalization: this online market will offer a high

degree of customization or personalization in its local crafts and goods,

providing a tailored experience for customers.

3. Variety of Options: Customers can subscribe to a surprise box once,

weekly, or monthly. Customers can also specify what they want to

receive, such as a package of crafts, gifts, or a combination of both. They

can also specify the location where they want the merchandise to come

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 from. This will create an excitement feeling to the customer who will be

receiving the parcel.

Customer Segment

Local crafts and items are now only available for purchase in the

Philippines, via an online marketplace. Everyone in the country is the target

market, including visitors who want to connect with Filipino culture and heritage

through the purchase of real local products.

Cost Structure

With the development of this online store in the Philippines, proportions

of costs to which this incurs in the process of producing and delivering goods

or services are the following:

1. Packaging and Shipping: Expenses related to packaging materials,

design, and the actual shipping of the curated crafts and goods to

customers.

2. Marketing and Promotion: In order to gain attention to the people, it is

necessary to have a good marketing strategy through advertisements,

promotions, and marketing efforts to attract and retain customers.

3. Technology and Platform Costs: Since LokalCrate operates through

an online platform, there might be costs associated with website

maintenance, hosting, and technology infrastructure.

4. Employee Salaries: Wages and benefits for employees involved in

various aspects of the business, including curation, customer service,

and logistics.

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 5. Taxes and Compliance: Expenses related to taxes, regulatory

compliance, and any legal or licensing fees.

Revenue Streams

The variety of sources of income where this business will generate will

be through the following:

1. Product Sales: A commission generated from the sale of local crafts and

goods.

2. Collaborations and Partnerships: Revenue generated through

collaborations with local artisans, businesses, or corporate partnerships.

3. Gift Services: Revenue from providing specialized gift services, such as

personalized packaging, gift wrapping, or customized messages for

special occasions.

4. E-commerce Platform Fees: If LokalCrate operates through an online

platform or marketplace, there may be revenue generated from fees

associated with transactions on the platform.

PRICES

For the customers who want to subscribe or have a one-time purchase

of the local crafts and goods, the price will vary depending on the preferred

box of the merchandise. This will also serve as their subscription fee and will

be the basis of what’s inside their box. Below is the pricing of the boxes to

choose from.

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 Prices ranges from 500 – 1000 pesos. This will be the basis of the

quantity and specific products that will be put in the mystery box of the

customer. Take note that they can state their preference depending on the

available products of the suppliers. An option of what should be inside the

box, whether goods only, crafts only, or mix, will be offered.

• What are Inside the Box?

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 THE MARKET

Target Market

In order to establish a solid and meaningful relationship with the target

audience, LokalCrate has identified the following target market segments,

which will inform its marketing tactics, product offers, and customer

engagement programs.

1. Demographic Profile:

Age Group: Individuals aged 25-45 years.

Geographic Location: Mainly aimed at varied population urban and suburban

locations

Income Level: middle-class to upper-class people

2. Cultural Affinity:

Filipino Diaspora: Those who have a strong desire to discover fresh traditions,

cuisines, and cultures.

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Global Citizens: People with a wide range of cultural origins that are eager to

discover and appreciate the diversity of Filipino culture.

3. Interests and Lifestyle:

Subscription Box Enthusiasts: People who are already using subscription box

services and are looking for experiences that are genuine and different.

4. Online Engagement:

Social Media Users: Utilizing the internet to establish connections with people

who are active on sites such as Facebook, YouTube, Instagram, and other

social media platforms.

Influencer Followers: Working together with cultural and lifestyle influencers to

reach a larger audience.

Market Penetration

The development of the LokalCrate leads to the creation of strategies in

order to increase sales, as well as popularity of local artisans, producers, and

businesses through an online market and platform. The strategies include the

following:

1. Digital Marketing Campaigns: To reach a bigger audience inside

existing markets, launch influencer collaborations, social media ads

(Facebook, Instagram, Twitter, LinkedIn), and platform-specific online

advertising campaigns like Google Ads.

2. Content Marketing: Provide informative and entertaining material, such

as blog entries, videos, infographics, and webinars, that highlights the

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 advantages of the product, addresses customer concerns, and

establishes the brand as an authority in the field.

3. Social Media Engagement: In order to build a sense of community and

loyalty, actively communicate with clients and potential clients on social

media platforms by answering questions, publishing user-generated

material, and launching interactive campaigns.

4. Email Marketing: Launch focused email marketing campaigns to re-

engage current consumers with tailored content based on their

preferences and previous interactions, nurture leads, announce new

features or goods, and promote special deals.

5. E-commerce Optimization: Streamline the checkout process, make the

website faster and more responsive to mobile devices, add user-friendly

navigation, and highlight eye-catching product descriptions and images

to continuously improve the online buying experience.

6. Customer Reviews and Testimonials: To gain the trust and credibility

of prospective consumers, ask happy customers to provide good

reviews and testimonials on review sites, social media, and the business

website.

By leveraging these online platforms effectively, businesses can

increase their market penetration by reaching more potential customers, driving

sales growth, and solidifying their presence within existing markets.

Market Size

The Philippines had 108.67 million households overall in 2020,

according to the 2020 Census of Population and Housing. Of the total, 50.05

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million (46.1%) belonged to the 25–64 age group. We may calculate that the

population between the ages of 25 and 45 was approximately 25.03 million

(23.0%) in 2020, assuming a uniform distribution of people within this age

range. The precise number of people in this age group may not be reflected in

this estimate, which is based on the data that is currently available.

Subscription box service adoption rates can vary significantly based on

a number of factors, including the industry, the offering's originality, marketing

tactics, and the subscription's perceived value. Nonetheless, acceptance rates

for subscription box services typically range from 5% to 15%. Assuming that

15% of the target demographic expresses a significant interest in cultural

exploration with a 10% subscription box service adoption rate, LokalCrate is

positioned to tap into a substantial market, with an estimated 375,000

subscribers.

Market Growth

The business plan for LokalCrate, a distinctive subscription box service

created to recognize and encourage the rich cultural diversity of the Philippines,

is something we are quite excited to propose. With the market for carefully

chosen immersive trips into the heart of the Philippines growing, LokalCrate is

well-positioned to benefit from the growing desire for genuine cultural

experiences. The following offer significant growth opportunities to the market.

• Cultural Subscription Box Industry Trends

The cultural subscription box industry has experienced remarkable

growth in recent years, with consumers seeking personalized and meaningful

experiences that connect them to different cultures. Expert Market Research

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estimates that in 2023, the global subscription box market would be valued USD

31.85 billion. The market is anticipated to expand at a compound annual growth

rate (CAGR) of 18.4% between 2024 and 2032, reaching a valuation of USD

145.82 billion by that time.

• Increasing Interest in Filipino Heritage

Global admiration and acknowledgment of Filipino culture are growing.

The growing appeal of Filipino customs, food, and art has sparked a curiosity

among tourists who want to discover and appreciate the distinctive features of

the country. LokalCrate is positioned in the market as a timely and relevant

service due to this cultural momentum.

• Impact of Influencers and social media

Consumer choices have been significantly influenced by social media

and online content creators. With these platforms at its service, LokalCrate can

engage with a wider audience that is interested about Filipino culture and

expand its reach.

PAYBACK PERIOD

This section will provide a financial analysis through a rapid estimation

of how long it takes for the investment to recoup its initial cost.

• For Cash inflow:

Assuming 100 boxes were bought monthly:

* 30 kaha

* 30 kahon

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 * 40 Bagahe

30 x 500 = 15,000

30 x 800 = 24,000

40 x 1000 = 40,000

Total Cash Inflow = 79,000 pesos

• For Cash Outflow:

* Assuming that the Kaha box has an average cost of 350 to make.

* Assuming that the Kahon box has an average cost of 650 to make.

* Assuming that the Bagahe box has an average cost of 800 to make.

30 x 350 = 10,500

30 x 650 = 19,500

40 x 800 = 32,000

Total cash outflow = 62,000 pesos

• Average Annual Cashflow

(Cash Inflow – Cash Outflow) (12 months)

= (79,000 - 62,000) (12 months) = 204,000

• Payback period

Cost of Investment/Average Annual Cashflow

= 1,000,000/204,000

Payback Period = 4.9 years

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 RETURN OF INVESTMENT

Calculating Return on Investment (ROI) involves assessing the profitability

of an investment relative to its cost. In the context of LokalCrate, the ROI can

be calculated based on the initial investment in launching and running the

subscription box service compared to the expected returns.

1. Initial Investment: 1 million (Includes product sourcing, website

development, marketing, operational costs, and initial inventory).

2. Annual Revenue per Subscriber: ₱ 500.00 (Calculated from a $35

monthly subscription fee).

3. Estimated Annual Subscribers: 375,000 (As per previous market size

analysis).

• ROI Calculation:

ROI= (Net Profit /Initial Investment) × 100

1. Annual Revenue

Annual Revenue= Annual Revenue per Subscriber × Estimated Annual

Subscribers

= ₱ 300.00 × 375,000

Annual Revenue= ₱ 112,500,000.00

2. Net Profit

Net Profit= Annual Revenue − Initial Investment

= ₱ 112,500,000.00 – ₱ 1,000,000

Net Profit= ₱ 111,500,000.00

3. ROI= (₱ 111,500,000.00/ ₱ 1,000,000) × 100

ROI= 11,150%

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