A Feasibility Study on Flower

and/or Fruit Arrangements in

Festival Mall, Alabang

Conducted by:
Asebuque, Monica B.
Corpuz, Jesse John A.
Salvador, Nicole Kaye B.
Sanchez, Jonna D.
Wein, Jessica DR.

October 16, 2014

• The study is about a service business offering fruit and
flower arrangement.
• The objective of the proponents in making the business
possible is to step out of the conventional and naïve
arrangements and jump into a sophisticated impression of
fruit and flower arrangements.
• The business wants to emphasize aesthetics, quality, price,
presentation of fruits and flowers, personal trust, and
interaction with customers as the important parameters in
assessing customer’s satisfaction, wants and needs.
• People of all walks in life can now have the perception that
flowers and fruits arrangement as a gift also corresponds to
a heartfelt message and action and that the business likes
to show in its exquisite, artful and creative arrangements.
Market Study
 Market Study

- Offer three product lines namely, the flower arrangements,

the fruit arrangements, and the combination of flower and
fruit arrangements.
- Target market are the residents of Alabang and mall shoppers
- Wants to emphasize aesthetics, quality, price, presentation of
fruits and flowers, personal trust, and interaction with
customers as the important parameters in assessing
customer’s satisfaction, wants and needs.
 Market Study
• Survey Results
- 397 randomly selected shoppers of Festival Mall are asked to
answer the survey
- The respondents are mostly 36 to 45 years old, female, married and
earns P15,001 – P30,000 monthly.
- 85% of the respondents have bought flower and/or fruit
arrangements before.
- 87.5% will patronize Fruity Floral’s flower and/or fruit arrangements
• Majorityof the respondents buy flower and/or fruit
arrangements every All Saints/Souls Day and Valentines
Day.
• Majority of the respondents buy flower and/or fruit
arrangements as a gift to special someone and/or family
and friends.
• Majority of the respondents are willing to buy flower
arrangements worth P300-P1000, fruit arrangements
worth P250-P500 and flower and fruit arrangements
worth P500-1500.
 Market Study
• Demand Situation:
-Computed the demand through a formula the
proponents made:

Demand = No. of Buyers x % of frequency of

buying habits x no. of days
 Market Study

To get the demand growth rate, the proponents used the

formula:
• 
   Year 2010 Year 2000

Alabang 56,752 48,002

*Source:http://www.nsoncr6.ph/special%20release/2010%20CPH%20Special
%20Release_Muntinlupa.pdf

 
Using the Arithmetic Straight Line Method, the

projected demand was computed as follows:

 

 
 Market Study

Projected Population Expected Number of

Year Buyers** Projected Demand***

2014 60,998* - -

• Projected Demand
2015 62,108 46,193 195,164

2016 63,238 47,033 198,716

2017 64,389 47,889 202,333

2018 65,561 48,761 206,015

2019 66,754 49,648 209,765

 PERCENTAGE OF FREQUENCY OF
CUSTOMERS BUYING HABIT
(BASED ON SURVEY AND NO. OF DAYS)

• If Valentine’s Day = 62.50%; 1

• If All Saints’/Souls’ Day = 72.50%; 1
• If Mothers’ Day = 45.00%; 1
• If Anniversaries = 45.00%; 1
• If Birthdays = 17.50%; 1
• Other Special Occasions = 30.00%; 1
• When they feel like buying,
regardless of occasion = 12.50%; 12
 Market Study
• Supply Analysis
Competitors Base Growth 2014 2015 2016 2017 2018 2019
Year Rate

Natural Art
Flowers and
Decors 39,082 6.70% 41,153 43,334 45,631 48,050 50,596 53,278

Alabang Florists
24,248 4.80% 25,533 26,886 28,311 29,812 31,392 33,056

Raphael’s Gifts
31,020 5.30% 32,664 34,395 36,218 38,138 40,159 42,288

Total
94,350   99,350 104,615 110,160 116,000 122,147 128,622

*The information was based on the data given by the competitors.

 Market Study
• Demand – Supply Analysis

Year Total Demand Total Supply Demand Gap Unfilled Demand Market Share

2015 195,164 104,615 90,549 46% 54%

2016 198,716 110,160 88,556 45% 55%

2017 202,333 116,000 86,333 43% 57%

2018 206,015 122,147 83,868 41% 59%

2019 209,765 128,622 81,143 39% 61%

*Demand gap = Total Demand – Total Supply

*Unfilled demand = Demand gap/Demand
*Market Share of Competitors = Total Supply/Total Demand
 Market Study
• Fruity Floral Market Share
Year Total Demand Total Supply Demand Gap Target Market Market Share

2015 195,164 104,615 90,549 9,127 10.08%

2016 198,716 110,160 88,556 8,926 10.08%

2017 202,333 116,000 86,333 8,720 10.10%

2018 206,015 122,147 83,868 8,479 10.11%

2019 209,765 128,622 81,143 8,212 10.12%

*Market Share = assumed by the researchers

*Target market = Demand gap x Market Share
 Market Study
• 4P’s of Marketing
Product: Offer three product lines namely, the flower
arrangements, the fruit arrangements, and the combination of
flower and fruit arrangements.
Price: Flower arrangements prices range from P210 to P855, fruit
arrangements range from P625 to P815, and flower and fruit
arrangements range from P675 to P880 depending on the
components and presentation.
Place: Festival Mall
Promotion: tarpaulin and sample brochures/ flyers/online
promotions through social networking sites.
Technical Aspect
 Technical Aspect
Location:
Festival Supermall,
Alabang, Muntinlupa City
 Floor Plan
6”
2.25” 3.75”
SCALE: 1
inch = 1
meter

PAYMENT AREA
ORDERING AND
(ADMIN SEAT)
5”

PREPARATION AND
WORKING AREA

WAITING AREA
 Exterior and Interior Design
Exterior View

Interior View
(Waiting Area)
Working Area

Storage Area
 PRODUCT DESCRIPTION

• Flower Arrangement
This type of arrangement consists mainly of flowers.
Customers can choose which type to include in the
arrangement from a wide variety of flowers offered by the
shop.
• Fruits Arrangement
This type of arrangement features fruits as its
main material. Customers may also choose which
type of fruits they like to see in the arrangement.

 
• Flower and Fruits Arrangement
This arrangement is a combination of both fruits and
flowers to give the customers a more exciting range of
product option.
 
 RAW MATERIALS
1. Flowers 1. Balloons
2. Fruits 2. Message Card
3. Basket 3. Floral Foam
4. Sinamay 4. Floral wires
5. Clear Cellophane Wrapper
6. Stuffed Toys
 Tools and Equipment

• Refrigerator for both fruits • Visitor’s Chair

and flowers
• Fluorescent Lamps
• Closed Circuit television • Working and Office table
• Computer • Display Rack
• Telephone • Swivel and Monoblock
• Cash register Chairs
• Fire Extingusiher • Sink
 Production Flow

• Purchase of flowers and fruits and other raw materials

• Preparation of the raw and other materials and tools that will
be used in arranging

• Actual Arrangement
• Packaging
• PROCESS DESIGN
In our process design, we use project process. Project
process is used to make a one-at-a-time product exactly to
customer specifications. We design our flower and fruit
arrangements based on customer’s preferences. Although we
have sample arrangements, we still ask for their own touch of
the arrangement.
Management and
Legal Aspect
VISION OF THE BUSINESS
• Fruity Floral will the leader in providing fruit and flower arrangements
services in the Philippines.
• Fruity Floral will achieve a tradition of exceeding customers’
expectations at a reasonable price.
• Fruity Floral will grow a profitable business by building repeat
customers and expanding our market area.
• Fruity Floral will provide opportunities for our staff to grow with the
business.
 
MISSION
• To serve our beloved and valued customers creatively, providing fresh
flowers and fruits with quality workmanship according to our
customers' needs and requirements, and superior customer service for
very affordable prices.
 
• OUR VALUES
• Integrity: We will be honest and responsible in dealing with our customers, suppliers
and co-workers.
• Quality & Excellence: We will provide the best quality products and complementing
services that meet the needs and exceed the expectations of our customers. We will listen
to our customers, in order to exceed their expectations we must first know what they
want. We should learn from inside and outside our industry. We will always peruse the
right changes towards improvement and innovation in all our operations.
• Excellence Driven! Commitment: Willingly and consistently putting the needs of
our customers first.
• Customer Focused! Market Driven! Go the Extra Mile! People: We will treat each
other the way we are expected to treat our customers. The Golden Rule: Treat Others as
you Want Them to Treat You.
 
Our Guiding Principles
Do What is Right.
Give Your Best, Nothing Less.
Customers are the Center of What We Do.
 MANAGEMENT AND LEGAL
ASPECT
• Organizational Chart
 MANAGEMENT AND LEGAL
ASPECT
PERSONNEL NUMBER OF WORKERS

General Manager 1

Cashier/Store Attendant 2

Flower and/or Fruit Arranger 2

TOTAL 5
 MANAGEMENT AND LEGAL
ASPECT
• Cashier/Store Attendant:
• Job Description:
• Welcome customers, maintain knowledge and help them with the selection
of arrangements
• Receives and entertain the orders of landline customers
• React to all concerns of customers quickly with a sense of importance
• Uphold predefined customer service standards
• Handle cash, change and operate the cash register
 MANAGEMENT AND LEGAL
ASPECT
• Flower and/or Fruit arrangers
• Job Descriptions:
• Arrange flowers and/or fruit arrangements based on the customers’ preferences
• Make pre-made arrangements for the brochure where the customers can choose
• Assist the customers and help them decide what to order
• Ensures the cleanliness and sanitation of the working area
• Responsible for maintaining and preserving the right condition of the flowers and
fruits
• Assist the Operations Manager in dealing with purchases and stock management
   General Cashier/ Cashier/ Product Product
DAY Manager Attendant #1 Attendant #2 Arranger #1 Arranger #2

11:30am –
Monday Off 9:00am – 6:30pm Off 9:30am – 7:00pm
9:00pm

9:30am – 7:00pm
12:00nn –
Tuesday Off 9:00am – 6:30pm Off
9:30pm

9:30am – 7:00pm
12:00nn – 11:30am –
Wednesday 9:00am – 5:00pm Off
9:30pm 9:00pm

12:00nn – 11:30am –
Thursday Off 9:00am – 6:30pm Off
9:30pm 9:00pm

9:30am – 7:00pm
12:00nn – 11:30am –
Friday Off 9:00am – 6:30pm
9:30pm 9:00pm

9:30am – 7:00pm
11:00am – 12:00nn – 11:30am –
Saturday 9:00am – 6:30pm
8:00pm 9:30pm 9:00pm

9:30am – 7:00pm
10:00am – 12:00nn – 11:30am –
Sunday 9:00am – 6:30pm
7:00pm 9:30pm 9:00pm
 MANAGEMENT AND LEGAL
ASPECT

Monthly
  Employees   Initial Monthly Salary Monthly SSS Premiums Monthly PHIC Premiums Monthly HDMF EE               Remittances  

              Monthly Total Monthly          

Daily Rate   EE EE 13th Month Monthly Net  

A. Administrative Personnel     ER Share EE Share ER Share ER Share Withholdi Monthly Salaries SSS PhilHealth Pag-ibig BIR  

        Share       Share   ng Tax Pay Deductions Expense Pay          

1. General Manager   15,000.00 545.00 1,135.00 187.50 187.50 100.00 100.00 1,078.33 15,000.00 1,910.83 15,000.00 13,089.17 1,680.00 375.00 200.00 1,078.33  

      -                                

B. Production and Marketing Personnel                                    

1. Cashier/Attendant 466.00 12,166.00 436.00 894.00 150.00 150.00 100.00 100.00 Exempt 12,166.00 686.00 12,166.00 11,480.00 1,330.00 300.00 200.00 Exempt  

2. Cashier/Attendant 466.00 12,166.00 436.00 894.00 150.00 150.00 100.00 100.00 Exempt 12,166.00 686.00 12,166.00 11,480.00 1,330.00 300.00 200.00 Exempt  

3. Product Arranger 466.00 12,166.00 436.00 894.00 150.00 150.00 100.00 100.00 Exempt 12,166.00 686.00 12,166.00 11,480.00 1,330.00 300.00 200.00 Exempt  

4. Product Arranger 466.00 12,166.00 436.00 894.00 150.00 150.00 100.00 100.00 Exempt 12,166.00 686.00 12,166.00 11,480.00 1,330.00 300.00 200.00 Exempt  

Monthly Total                   63,664.00 4,654.83 63,664.00 59,009.17 7,000.00 1,575.00 1,000.00 1,078.33  

                                       

                    Annual 63,664.00 55,857.96 763,968.00 708,110.04 84,000.00 18,900.00 12,000.00 12,939.96  

 MANAGEMENT AND LEGAL
ASPECT

• Code of Ethics
Hygiene and Sanitation
Arrival and Departure of Employees
Notice of Disciplinary Action
 MANAGEMENT AND LEGAL
ASPECT
- The business will comply with all the necessary legal
requirements with an estimate cost of PHP 20,490.00

- The business will pay an income tax according to the

provisions of NIRC (30% regular corporate income tax)

- The business will be a VAT Registered entity and

therefore required to pay 12% on its gross receipts and
must file the return not later than the 20th day
following the end of each month.
Financial Study
• The organization is a general form of partnership with a
capital investment of P750,000.00.
• Profits/Losses are distributed equally to the partners.
• The estimated useful life for equipments will range from 5 to
10 years.
• The estimated useful life for furniture and fixtures will be 15
years, except for the fluorescent light which will be
depreciated for 1 year.
• Depreciation of equipment and furniture and fixtures were
computed using straight line method.
• There will be 3% annual price increase.
• Sales will increase by 1.82%.
• There will be considered an annual increase in purchasing of
raw materials, utilities expenses, and supplies.
• Purchasing of flowers will be done every 5 days, purchasing of
fruits will be done every week, and all other nonperishable raw
materials will be purchased when level of inventory reaches its
20% lower limit.
• All transactions will be on cash basis.
• Income tax will be 30% of net income.
• Contributions of employees on SSS, PhilHealth, PAG-IBIG,
and Withholding Tax will be deducted based on their monthly
salary.
• Contributions for SSS, PhilHealth, and PAG-IBIG will be
remitted monthly.
• Income tax will be remitted yearly.
• The withdrawals of partners will be limited up to P250,000 per
year.
ASSUMPTIONS:
Depreciation Expense
To determine the Annual Depreciation Cost, the Straight-Line Method is used.

Supplies
Supplies Annual Increase Rate 1.82%

Utilities
Utilities Inflation Rate 4%
Estimated Monthly Utilities Expense
A. Water 217.35
B. Electricity 2,540.25
C. Aircon 3,450.00
D. Telephone Subscription 1,599.00

Salaries Expense-Monthly
A. General Manager 15,000.00
B. Store Attendant 12,166.00
C. Product Arranger 12,166.00

13th Month Pay

A. General Manager 15,000.00
B. Store Attendant 12,166.00
C. Product Arranger 12,166.00
Rent Expense
Annual Increase in Space Rental Fees 10,000.00
Estimated Monthly Rent Expense
A. Space Rental 36,000.00
B. Common Use Service Area (CUSA) 3,150.00

Bank Loan
Amount borrowed 2,000,000.00
Term in years 5
Interest per annum 7%
Principal is payable in lump-sum on December 31, 2019, annual interest
payment is based on outstanding principal.
Effective interest rate 4%

Income Tax Rate 30%

 PROJECT COST
FIXED CAPITAL COSTS
Equipments 57,340.00
Furniture and Fixtures 24,450.00
Total 81,790.00

PRE-OPERATING CAPITAL EXENDITURES

Organizational Cost 78,779.00
Permit and Licences 2,900.00
Total 81,679.00

INITIAL OPERATING EXPENSES

Raw Materials 969,183.45
Salaries Expense 208,987.50
Rent Expense 39,150.00
Supplies 556.25
Utilities Expense 23,419.80
Total 1,241,297.00

TOTAL PROJECT COST 1,404,766.00

 Sources of Capital

• Partners’ investment of 150,000 each totaling 750,000

• Bank loan of 2,000,000
Cash Proceeds from bank loan

PV of Principal 1,643,854.00
(2,000,000 x .8219)

PV of Interest Payments 623,261.00

[(2,000,000 x .07) x 4.4518]

Total Cash Proceeds 2,267,115.00

Socio-Economic
Aspect
A.1. Contribution to the Philippine
Economy

• Every business establishment will be of great help for the

growth and development of the Philippine economy.
These will only be possible if every firm will be
responsible enough to perform their duties and
obligations to their customers, community and of course
to the government. Fruity Floral will definitely contribute
additional earnings to our government by means of
paying right taxes.
 A.2. Employment Generation

• Fruity Floral will help to lessen rate of unemployment and

number of poor people. The eradication of poverty will
help to solve social problems like crimes, juvenile
delinquency and malnutrition.
 A.3. Environment Conservation

• Fruity Floral will be sensitive enough to our environment

by means of assuring that the processes involve in the
business operations will be environmental friendly.
Moreover, the firm will apply the principle of Corporate
Social Responsibility (CSR). The business will observe
proper waste disposal in order to maintain cleanliness
and orderliness.
 WASTE DISPOSAL
MANAGEMENT

• Wastes are segregated into biodegradable and non-

biodegradable, those that are non-biodegradable like
plastic containers and others can be old in junk shops.
However, waste that are biodegradable like spoiled fruits
can be used to fed animals or spoiled fruits and flowers
are placed in a compost pit which can later be used as a
fertilizer.
A Feasibility Study on Flower
and/or Fruit Arrangements in
Festival Mall, Alabang

Conducted by:
Asebuque, Monica B.
Corpuz, Jesse John A.
Salvador, Nicole Kaye B.
Sanchez, Jonna D.
Wein, Jessica DR.

October 16, 2014

THANK YOU!!!