BUSINESS PLAN OF ZIN

CLOTHING

Submitted to:
Mrs. Julia T. Cardona
Teacher

Prepared by: BSAIS 1A

Micah Anggaco
Miriam Daniel
Janna Victoria
Gianne Mae Sarmiento
OPERATING
PLAN
FINANCIAL
PLAN
Marketing Plan
Target Market

The target market of ZIN Clothing is the general market. Since 40M Filipinos belong to the
segment of Millennials and Generation Z, most of the products will cater to the demand of these
market segments. This market segment is also one of the most fashionable generations and is
interested in expressing themselves through what they wear.

Marketing Mix

Product. The product provided by the organization is different from the ones available in the
market. ZIN Clothing focuses to produce a quality-designed shirt, worthy of the wearer’s taste and
profile.

Price. ZIN Clothing wanted to make its products affordable but high quality. The organization
will implement both cost-plus pricing and penetration pricing. The cost-plus pricing strategy takes the
cost of the raw materials and the cost of production and adds them to the overhead costs of a product
or service. On the other hand, the penetration pricing strategy uses a low price to enter the industry.

Place. Due to the ongoing pandemic, there will be two places in the business. One physical
store and an online store to cater to both markets. It is important to keep up with the current direction
of the industry that has both physical and online stores to maximize their profit.

Promotion. ZIN Clothing will use discounted prices and join the monthly sales offered by the
Online Shopping Platform. Advertisements through various social media sites will also be run as well
as having responsive customer service on the different social media accounts.

Market Research

Competition. The competition of ZIN Clothing has not limited to the ones situated in the
geographical location of the business. Competitors of the company include big clothing corporations,
local shirt printing businesses, online clothing stores, thrift shops, live selling individuals, and others.
ZIN Clothing aims to differentiate its product from the ones available in the market.

Customers. The customers include the younger Filipino generations as they are more
conscious on what they wear. This means that they choose frantically every day on what they should
wear without being judged by others. They have been investing through their clothes as they believe
that it reflects themselves. ZIN Clothing will answer this problems brough upon by the market
research on customers.
Operating Plan
Manpower

ZIN Clothing requires four important positions to enable its production and develop high-quality
products and ideas. These four positions include general manager, creatives head, production head,
and social media manager.
The general manager of ZIN Clothing will be the one that manages every aspect of the
business. The general manager will also have the position to check the finances and bookkeeping of
ZIN Clothing.
The creatives head will be focusing on brainstorming and developing new designs that is on
brand and on trend of younger Filipino generations. This position will be open for people who had
previous experience with making designs and artistic expression. They will also maintain the branding
of social media and other online accounts of the business.
With the production head position, they will focus on the production part of ZIN Clothing. They
will maintain that the quota production every month will be maintained and will also oversee quality
control on the made products. Production head will also be maintaining the inventory and delivery of
products.
Lastly, the social media manager will oversee the online function of the company. They will
connect with target customers and create publication materials to advertise the product of ZIN
Clothing. They will also be handling the communications with supplier and retailer of the company.

Method

Brainstorming

Design Creation

Preparation of Materials

Stencilling and Screen Preparation

Emulsion Exposure

Ink Pressing

Drying

Presented above is the method of silkscreen technique which will be employed by ZIN Clothing
in the production of the t-shirts.

Machines

The company will use a silkscreen technique which does not require any machineries. Printer
will be used to print the stencils and other design for the t-shirt. However, for the use of social media
and online shop management, personal computer and cellphone of the social media manager will be
utilized. This will be also used in the updating of database of finances of ZIN Clothing.

Materials

The required materials in production are the following t-shirts, stencil design, screen-printing
press, inks, silk screen, and squeegee. A washing stations will also be used to remove traces of
emulsion after using the screen. Screen-print press will be used together with mesh screen and
squeegee but the company will try to improve its production through research.
Financial Plan
Starting investment of the venture will be PHP 100,000 including all the legal requirements such as
licenses and permits required to be obtained by the business.

The projected cost of operating expenses annually will be PHP 8,000, and the projected overhead
expenses annually are PHP 15,000. The operating expenses include materials, labor, equipment and
machinery, packaging, and other related expenses. These projected overhead expenses include
indirect material and labor, rent, advertising expenses, utilities, taxes, maintenance, and other
expenses not mentioned.

Here are the summarized monthly projections for the first three months of ZIN Clothing:

Month 1 Month 2 Month 3

(December 2021) (January 2022) (February 2022)
No. of Units to be 50 55 60
Produced
Estimated Sales (No. of ₱12,500 ₱13,750 ₱15,000
Units x Price of P250.00
per unit)

Month 1 Month 2 Month 3

(December 2021) (January 2022) (February 2022)
Cost of Sales
Direct Materials ₱5,000 ₱5,500 ₱6,000
Direct Labor ₱3,000 ₱3,000 ₱3,000
Factory Overhead ₱1,500 ₱1,650 ₱1,800
(Percentage of Sales)
TOTAL ₱9,500 ₱10,150 ₱10,800

Month 1 Month 2 Month 3

(December 2021) (January 2022) (February 2022)
Sales ₱12,500 ₱13,750 ₱15,000
Less: Cost of Sales
Direct Materials ₱5,000 ₱5,500 ₱6,000
Direct Labor ₱3,000 ₱3,000 ₱3,000
Factory Overhead ₱1,500 ₱1,650 ₱1,800
Gross Profit from Sales ₱3,000 ₱3,600 ₱4,200

Month 1 Month 2 Month 3

(December 2021) (January 2022) (February 2022)
Sales ₱12,500 ₱13,750 ₱15,000
Less: Cost of Sales
Direct Materials ₱5,000 ₱5,500 ₱6,000
Direct Labor ₱3,000 ₱3,000 ₱3,000
Factory Overhead ₱1,500 ₱1,650 ₱1,800
 Gross Profit from Sales ₱3,000 ₱3,600 ₱4,200
Less: Operating
Expenses
Marketing Expenses ₱166 ₱166 ₱166
Advertising Expenses ₱333 ₱333 ₱333
Net Income ₱2,501 ₱3,101 ₱3,701

Financial projections for ZIN Clothing are the following: Sales by 20% in 2023 with respect to 2022,
40% in 2024 with respect to 2022, 60% in 2025 with respect to 2022, and 80% in 2026 with respect to
2022.

Here is a 5-year Financial Projection for ZIN Clothing:

Year 1 Year 2 Year 3 Year 4 Year 5

Sales ₱108,750 ₱130,500 ₱152,250 ₱174,000 ₱195,750
Less: Cost of Sales
Direct Materials ₱43,500 ₱52,200 ₱60,900 ₱69,600 ₱78,300
Direct Labor ₱36,000 ₱42,000 ₱43,800 ₱44,400 ₱45,600
Factory Overhead ₱13,050 ₱15,660 ₱18,270 ₱20,880 ₱23,490
Gross Profit from Sales ₱16,200 ₱20,640 ₱29,280 ₱39,120 ₱48,360
Less: Operating Exp.
Marketing Exp. ₱2,000 ₱2,500 ₱3,000 ₱3,500 ₱4,000
Administrative Exp. ₱4,000 ₱4,800 ₱5,600 ₱6,400 ₱7,200
Net Income ₱10,200 ₱13,340 ₱20,680 ₱29,220 ₱37,160