Product Proposal

PRECIOSO
"Be You, Feel New"
A Product Proposal
Presented to the faculty of Business Administration of
Paete Science and Business College, Inc.
(Formerly Eastern Laguna College, Inc.)
Paete, Laguna
In Partial Fulfillment
Of the Subject Product Management
By
Melvin John M. Paez
June 2022
J.P. Rizal St. Paete, Laguna
_____________________________________________________________________________________
Table of Contents
PRODUCT SUMMARY....................................................................................................3
INTRODUCTION..............................................................................................................4
EXECUTIVE SUMMARY................................................................................................. 5
I. Product
Product Description..........................................................................................................6
Product Life...................................................................................................................... 7
Procedure.........................................................................................................................7
Logo................................................................................................................................. 8
Tagline Description.......................................................................................................... 9
Product Portfolio...............................................................................................................9
Packaging...................................................................................................................... 10
Green Marketing............................................................................................................ 10
II. Price
Selling Price................................................................................................................... 11
Pricing Strategy..............................................................................................................11
Variable cost.................................................................................................................. 12
The Target Market..........................................................................................................12
III. Place
Location of the business Picture....................................................................................14

Location Description.......................................................................................................14
Retention Strategy......................................................................................................... 15
IV. Promotion
Promotion Strategy........................................................................................................ 15
List of Figures.................................................................................................................16
Curriculum Vitae
2
_____________________________________________________________________________________
PRODUCT SUMMARY
Precioso advanced serum is a hundred percent organic product as it contains
ingredients extracted from plants such as bearberry, blueberry, cranberry, mulberry,
pomegranate, barley, rye, almonds, and aloe vera, etc. The product is water-based, for
it is known to be the most effective type for penetrating the skin cells and delivering
instant and effective results. A serum is one vital part of the skincare routine as we age
daily and get exposed to UV rays, resulting in dull skin, discolorations, and dark
patches. Precioso is formulated with 10% pure glycolic acid and azelaic acid, mandelic
acid, vitamin b3, vitamin c, and arbutin that clarifies and reveals beautiful skin with a
rejuvenated complexion. With regular use of Precioso, the dark spots will be visibly
alleviated after two weeks, while fine lines and wrinkles are visibly decreased after four
weeks.
In an attempt to adopt greener products and make them more cost-effective, the
owner will form collaborations with local suppliers as a source for the ingredients and
environmental protection agencies to be a source of funds; hence, the price will become
more reasonable. The location of the business where the product sells will be in Sta.
Cruz, Laguna, as the owner, targets students and young and old professionals who
have the means to spend on such products. The owner will also participate in programs
that empower the community, such as tree planting, community cleaning, leadership,
and skills training for the youth to build their brand image. Moreover, for the business to
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secure a market position and maximize profitability, the owner will use extensive online
advertising to raise brand awareness.
INTRODUCTION
Precioso has based on the life experiences of the owner himself. It started when
the owner had come to a phase of having a hormonal imbalance and suffering from an
unhealthy lifestyle which resulted in acne breakouts. The owner was once viewed as a
high-maintenance person as he possesses a clear and fair skin and maintained it in the
past ten years as he believed that self-image is one of his greatest assets, and that is
the reason why he had come to the point when he started questioning his worth. After
taking some time to learn from that situation, he came up with the idea of making a
product that fits his need and could possibly be an aid to others which is a Serum.
A serum is a skincare product that people can apply to their skin after cleansing
but before moisturizing to deliver powerful ingredients directly into the skin. The serum
is particularly suited to this task because smaller molecules can penetrate deeply into
the skin and give a very high concentration of active ingredients. This makes them an
excellent tool for targeting specific skincare concerns, like wrinkles, hyperpigmentation,
dark spots, and red or irritated skin. Etc.
The business will add initiatives to increase eco-friendly packaging across all
products in line with the UN 2030 Sustainable development Goals adopted by General
Assembly in 2015. Precioso will actively be working to decrease its dependence on
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plastic packaging and minimize its footprint to keep up with the consumer demand for
greener products
EXECUTIVE SUMMARY
The product name "Precioso" has long been conceptualized by the owner, Melvin
John Paez. The term precioso is a Spanish word that means "beautiful." Precioso is a
skin care product, specifically a serum that helps deal with post-inflammatory
hyperpigmentation. The product contains anti-inflammatory properties, azelaic and
mandelic acid Vitamin B3, Vitamin C, and arbutin made from organic ingredients that
block melanin production, reduce breakouts, and treat acne. This can be one source for
gaining a competitive advantage; aside from that, the product packaging that the owner
will use is a combination of wooden pump bottles and glass bottle packages that can be
planted or used for upcycling.
The use of local and organic ingredients will be one of the unique value
propositions of the business. Local sourcing will be one of the most significant initiatives
that the company will offer; other than that is the use of eco-friendly packaging. In the
past three years of crafting plans, the owner has stayed committed to his goals of being
part of the movement toward sustainable development by considering green in every
business process starting from production to the distribution of goods. Furthermore, the
business will also participate in programs that empower the community like a marathon
for a cause, philanthropic programs like donating to a local non-profit organization,
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partnerships with local suppliers with sustainable practices, leadership training
programs, and tree planting.
Product Description
Precioso is a daily-use dark spot corrector, acne solution, and anti-aging that
helps reduce the appearance of key types of skin discoloration in all skin tones. This
includes hard-to-treat forms such as stubborn brown patches post-acne marks; this also
helps reduce acne breakouts and wrinkles. The product is formulated with azelaic acid,
mandelic acid, niacinamide, vitamin c, vitamin b3, and arbutin. This latest-generation
formula improves the appearance of skin discoloration, brightens and hydrates skin,
neutralizes free radicals, and enhances the appearance of fine lines and wrinkles. It
also helps reduce inflammation and provides natural, mild exfoliation as early as
possible for two weeks with regular use in the evening. The product is ideal for people
with dry, normal, oily, or combination skin types.
Product Life
The shelf life of Precioso serum depends on the size, the packaging, and how
the consumer uses it. If the product remains unopened, it should last two to three years.
However, if the product is open and used consistently, the serum should last eight
months to one year. The product will be available in different sizes (50 ml, 100 ml, 200
ml) and will use a combination of wooden and glass dropper bottles with seeds
embedded inside. With proper use, the product life might achieve beyond the said point.
6
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Procedure
Product application
You can apply Precioso serum in 2 different ways depending on which you prefer.
1. Apply the serum gently with your fingertips. Use your fingertips to apply the
serum to your face and neck gently and then lightly tap, pat, and smooth the
serum out. Avoid tugging the skin and rubbing too hard. Let the product absorb
on its own once you've smoothed it out.
The second method is to use your palms.
2. Apply two pumps or 3-4 drops of serum into your palm. Gently rub your palms
together to warm and activate the serum. Lightly press your palms onto your skin
and pat the serum on in outwards and upwards motions until it is fully applied to
your face and neck.
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Logo
Figure 1: The product logo
The logo consists of metaphorical elements that symbolize the product features
and the goal of the product. The grain-like shape is one of the serum's active
ingredients: azelaic acid. The owner uses that shape for the reason that azelaic acid
was made from barley. Precioso was formulated with 10% Azelaic acid, which is the
main ingredient of the product, combined with mandelic acid made from bitter almonds.
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On the other hand, the flower (calla lily) and the color pink symbolize the word "beauty,"
Which is the product's name when translated to English.
Tagline Description
The owner comes up with the tagline "Be You, Feel New." He aims to tell and
encourage everyone to see the beauty that lies within themselves and eliminate the
idea and desire of wanting to be like someone else or the stigma of seeing themselves
as "flawed" people. He believes that people don't necessarily need to change who they
are; they need to embrace themselves, make progress and be better than their past
self-image instead, and that they must consider the right product as one of the ways to
build their confidence.
Product Portfolio
Precioso Face Care Product
Precioso Face Cream
Precioso Cleansing Milk
Precioso Tonic lotion
Precioso Cleansing wipes
Precioso Cleansing Gel
Precioso Eye make-up remover
Precioso Micellar water

Precioso Moisturizing day cream
Precioso Moisturizing night treatment
Precioso advanced serum

Precioso Eye cream
9
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Precioso Moisturizing lip balm
Precioso Tissue mask
Packaging
Figure 2: The product packaging
The company's packaging is a combination of glass and wooden bottles and jars.
The business is committed to creating a sustainable environment by continuously
supporting and promoting eco-friendly packaging across all products as the customers
become more conscious of green business and demand a greener product. The
company will impact its customers' minds, industry, and the world as they create a
global brand by providing an empowered and innovative product packaging and design
to exceed customer satisfaction and strive to be a global leader in the beauty industry.
Green Marketing
10
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The product packaging has embedded, well-preserved seeds that can last for
two to three years, considering the upcycling of bottles and jars that can be planted if no
longer in use. The company also uses a hundred percent natural ingredients in making
its products and participates in the abovementioned programs or activities that empower
the community and helps minimize the carbon footprint.
Selling Price
As we may gain an advantage as a new entrant to the industry by providing an
exemplary asset, we aim to elevate a cost-efficient brand by using a penetration pricing
strategy. Precioso advanced serum is worth 399 pesos per 100 ml bottle for every third
bottle purchase of the customer within the transaction. The price will lessen to 1000
Php, giving them a 20% discount. We came up with this pricing strategy as we'd like to
boost their sales and attain brand awareness and customer loyalty.
Pricing Strategy
The company will use a penetration pricing strategy to gain a foothold in a
perfectly competitive market. The business will lower the price of the products than what
the competitors may offer to capture the customers' attention, raise brand awareness
and create customer loyalty. The attributes of the products may vary in price—the
designs, the styles, the size, etc. The company will position itself as a provider of
naturally safe, cost-efficient, eco-friendly, and effective skincare products.
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Variable cost
Production Variable cost
Ingredients Not specified
Packaging 80 php per 50 ml
Labeling 360 php yearly
The Target Market
The demographics, psychographics, and behavioral aspects of the Precioso
product customer are as follows:
Demographics
 Resides in Paete, Laguna, and the nearby town
 18 – 40 years old Male, Female, LGBT
 Teenagers, College Students, Young Professionals
 Disposable income greater or less than 30,000 Php
Psychographics
 Highly reliant on technology
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 Green product conscious
 Extroversion
 Fond for skin care products
Behavioral aspects
 Spend their free time shopping
 Spending 5000 Php/ year for skincare,
 Keeps up with the latest trend but does not wear them from head-to-toe
 Seeks effective solution for their skin concerns
 Prefer organic ingredients rather than chemicals
Customer Profile
Precioso’s ideal customer is between 18 – 40 composed of men, women, and
LGBTQ+. Some are teenagers and college students others are young professionals
who have joined the workforce. They usually spend their disposable income and
allowances on shopping online using different platforms and offline. Those who spend
their free time going out with their friends searching for things they would like to buy
skincare products. Some might've appreciated the salespeople's opinions and approval
on whether the things they buy will suit them or not. Some are budget conscious as they
might have not yet worked long enough to establish a significant net worth.
13
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Location of the business Picture
Figure 3: The location of the business
Location Description
The company will use different interdependent organizations that are involved in
the process of making the product available nationwide for use and consumption this
14
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includes Wholesalers, sales personnel, distributors, and retail stores such as
supermarkets, department stores, convenience stores, superstores etc. The brick-and-
mortar is located at Pedro Guevarra Avenue Sta. Cruz, Laguna, nearby Chowking and
ACTS computer College
Retention Strategy
Precioso aims to give the best and the most effective way to gain and retain the
loyalty of their valued customers. The company would like to know them more and be
on their shoes to comprehend, to puzzle out their never ending wants and needs. As
much as they value their team members, the customer is also their top priority as they
are the under structure of the business, the business will be open for constructive
criticism, suggestions, recommendations to ameliorate so they can exceed the
customer’s expectations. The company will also offer discounts, coupons
Promotion Strategy
Precioso will add new sales representatives to assist in the development of
distribution outlet. they will also hire a trainer to train their sales force about their
product and how to effectively lead the market and advertise more aggressively to
achieve brand awareness. The company will use different marketing channels that can
be used to spread the message of the company and the word about their product. This
includes Targeting blogs, publicity, social and display ads, search engine optimization,
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email marketing, trade shows, magazines etc. Any remaining promotional budget could
be directed to personal selling of the current and new products.
List of Figures
Figure 1: The product logo
Figure 2: The product packaging
Figure 3: The location of the business
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_____________________________________________________________________________________
MELVIN JOHN M. PAEZ

PHONE:
+639102387349
EMAIL:
melvinpaez209@gmail.com
OBJECTIVE
A creative mind with a broad perspective

on life desiring to share exceptional ideas
and skill set about leadership and
personality development. Experience
managerial functions as a representative of
an organization. A strong work ethic with
an aspiration to be of help with the success
of the business.
WORK EXPERIENCE
Office Staff
SPES (Tourism Office)
September-October 2021
Assigned for clerical, encoding, and
messengerial duties, as well as other
computer and programming
EDUCATIONAL BACKGROUND
Bachelor of Science in Business

Administration Major in Marketing PERSONAL INFORMATION
Management
Paete Science and Business College Birth Date: January 18, 2000
Status : Single
June 2019-present Religion: Roman Catholic
Suppreme Student Council Language Spoken: Filipino/English
Representative 2019-2021 SEMINARS AND TRAININGS ATTENDED
DTI Negosyo Center
San Pablo City
Leadership & Personality Development Training
Sta. Cruz Laguna
Quezon City
I hereby affirm that the given information is true and correct to the best of my knowledge and Belief.
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Melvin John M. Paez
Applicant
18

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PRECIOSO

"Be You, Feel New"

Presented to the faculty of Business Administration of

Paete Science and Business College, Inc.

(Formerly Eastern Laguna College, Inc.)

Of the Subject Product Management

Melvin John M. Paez

Location of the business Picture....................................................................................14

Precioso advanced serum is a hundred percent organic product as it contains

ingredients extracted from plants such as bearberry, blueberry, cranberry, mulberry,

advertising to raise brand awareness.

dark spots, and red or irritated skin. Etc.

Assembly in 2015. Precioso will actively be working to decrease its dependence on

hyperpigmentation. The product contains anti-inflammatory properties, azelaic and

planted or used for upcycling.

part of the movement toward sustainable development by considering green in every

for a cause, philanthropic programs like donating to a local non-profit organization,

partnerships with local suppliers with sustainable practices, leadership training

programs, and tree planting.

with dry, normal, oily, or combination skin types.

on its own once you've smoothed it out.

The second method is to use your palms.

your face and neck.

Figure 1: The product logo

Which is the product's name when translated to English.

build their confidence.

Precioso Eye make-up remover

Precioso Micellar water

Precioso Moisturizing night treatment

Precioso advanced serum

Precioso Moisturizing lip balm

Precioso Tissue mask

Figure 2: The product packaging

The business is committed to creating a sustainable environment by continuously

the community and helps minimize the carbon footprint.

As we may gain an advantage as a new entrant to the industry by providing an

exemplary asset, we aim to elevate a cost-efficient brand by using a penetration pricing

The company will use a penetration pricing strategy to gain a foothold in a

naturally safe, cost-efficient, eco-friendly, and effective skincare products.

Production Variable cost

Ingredients Not specified

Packaging 80 php per 50 ml

Labeling 360 php yearly

The Target Market

The demographics, psychographics, and behavioral aspects of the Precioso

product customer are as follows:

 Resides in Paete, Laguna, and the nearby town

 18 – 40 years old Male, Female, LGBT

 Teenagers, College Students, Young Professionals

 Disposable income greater or less than 30,000 Php

 Highly reliant on technology

 Green product conscious

 Fond for skin care products

 Spend their free time shopping

 Spending 5000 Php/ year for skincare,

 Seeks effective solution for their skin concerns

 Prefer organic ingredients rather than chemicals

Precioso’s ideal customer is between 18 – 40 composed of men, women, and

Location of the business Picture

Figure 3: The location of the business

includes Wholesalers, sales personnel, distributors, and retail stores such as

supermarkets, department stores, convenience stores, superstores etc. The brick-and-

ACTS computer College