Market 1 - 28

8/11/2019 Market 1 - 28

1/29

1

Executive Summary:

Name of Applicants

Michael Jere D. Abiol

Jirehli D. Delima

Julie Pearl D. Juliata

Anna Micah B. Manubag

Business Name

Clay Creations

Location

Head Office and Project Site:

Door 5, Eltanal Apartment Redemptorist Street, Tibanga,

Iligan City

RATIONALE

Polymer clay, as the name implies, is a sculptable, blendable and

pliable material based on the polymer polyvinyl chloride (PVC). However,

it is not true clay; it is only PVC suspended in plasticizer. Even though it

contains no clay minerals, polymer clay is still called clay because of the

resemblance of their features, texture and working properties with that of

the mineral clay. (Source: http://en.wikipedia.org/wiki/Polymer_clay)
http://en.wikipedia.org/wiki/Polymer_clayhttp://en.wikipedia.org/wiki/Polymer_clay

8/11/2019 Market 1 - 28

2/29

2

Nowadays, students specifically in high school and college of both

private and public sectors, appeared to have interests in accessories as

an added embellishment to their handbags, cell phones and etc. most

especially that it can be personalized. With their shown fondness of these

accessories, the researchers came up with the idea to establish their own

business with the name Clay Creations. Clay Creations will start as a

small business that will be a stepping stone towards the vast world of

business and the development of arts. The researchers decided to pursue

this study because its unique and easy for them to mold and to

customize according to the customers desired designs.

The main branch will be situated at Door 5 Eltanal Apartment,

along Redemptorist Street, Tibanga Iligan City where all the processing of

the products takes place. However, for the accessibility and for the

availability to its customers, the display area will also be located at the

same place where there are huge numbers of passersby. In this location,

we can easily promote and advertise our products by vending it to the

public.

Project Description

Clay Creations is a newly ventured business that engages in the

manufacturing and selling of personalized and customized accessories

such as chibi dolls and nametags made out of polymer clay to be used as

8/11/2019 Market 1 - 28

3/29

3

keychains. The product will be polymer clay that is molded and shaped

according to the chosen design of the customer. Approximately, the shop

can produce a minimum of 16 pieces a day or 320 pieces a month

excluding weekends. This product can be used as gift item, collectible or

just simply an accessory.

SOCIAL AND ECONOMIC DESIRABILITY

The proposed business can benefit both the proponents and the

economy. Through this, it can generate employment and contribute to

the labor and employment problems faced by the society. It aims to step-

up the awareness of the product as well as for those who have interests

in venturing into this business. It could, at the same time, help the

development and hike the economic increment of arts and creativity of

the people here in Iligan City.

MARKET FEASIBILITY

Polymer clay is new in the market. Hence, some people are not

familiar with these products. Most manufacturers intend to use raw

materials which conform to specifications to produce good quantity of

products. Clay Creations sets a goal to offer customized products

through unique designs, reliable, and high quality materials by making

8/11/2019 Market 1 - 28

4/29

4

accessories like key chains and chibi dolls made out of polymer clay.

Considering the quality of materials which is uppermost in the minds of

end users, the business considers these semi-finished products as the

best component to introduce good quality of products in the market. The

target market will be the high school and college students of both private

and public sectors. It will be promoted in different social networking

sites, posting of tarpaulin outside the display area, and through personal

selling to directly inform the potential buyers.

TECHNICAL FEASIBILITY

The project comprises a minimum amount of capital to fund the

business. The needed materials are the following: variety of colors of

polymer clays, key chains, pins, varnish, paint brush, oven toaster,

aluminum foil, and plastic for the packaging.

FINANCIAL FEASIBILITY

ROI = 5.30 or 530%

Payback Period = 2.3 ~ 2.3 months

Break-Even Analysis:

Nametag: BEP = 15 Nametags ; Break-even on Sales = P750.00

Chibi Doll: BEP = 7 Chibi Dolls; Break-even on Sales = P525.00

8/11/2019 Market 1 - 28

5/29

5

MARKET

STUDY

8/11/2019 Market 1 - 28

6/29

6

Introduction

Polymer clay is a sculptable material mostly used by artists,

hobbyists and children. It has a basis of polymer polyvinyl chloride (PVC)

and one or more several kinds of liquid plasticizer. It contains no clay

minerals. However, it is called clay because of its texture and working

properties which resembles to mineral clay. It has been tested and

approved by the Arts and Crafts Materials Institute (ACMI), Consumer

Product Safety Commission (CPSC) and American Society for Testing and

Materials Standard (AMSTM) that it has a status of being non-toxic. But

it is said to be harmful if it is in contact with mouth. (Source:

http://en.wikipedia.org/wiki/Polymer_clay)

Polymer clay has a variety of colors. It can also be colored with

other medias such as paint, ink, colored pencil, etc. to have a specialized

effect and to make it more attractive.

People, particularly high school and college students of both

private and public sectors, are indeed fond of having different accessories

for their personal items such as purse, cell phones, etc. to complete and

compleme nt the items look. Having these personalized accessories is

also an excellent way to express ones self by ex hibiting ones personality

through the products color and especially design accordingly giving way

to the persons individuality and uniqueness.
http://en.wikipedia.org/wiki/Polymer_clayhttp://en.wikipedia.org/wiki/Polymer_clay

8/11/2019 Market 1 - 28

7/29

7

For these reasons, the researchers came up with the idea to create

and produce this exceptional product polymer clay personalized

accessories specifically chibi dolls and nametags preferred accessories

in the market.

PRODUCT

Clay Creations is a business that manufactures and sells

customized or personalized accessories, chibi dolls and nametags, which

are made out of polymer clay. The product will be from a piece of clay

that will be molded according to the desired design of the customer.

Approximately, the business can create a minimum of 320 pieces a

month or 16 pieces a day. The product can be used as a souvenir item,

gift, decoration or simply an accessory.

8/11/2019 Market 1 - 28

8/29

8

MARKET ENVIRONMENT

To gather information and data relevant for the study, the

researchers provided 100 self-constructed survey questionnaires. In this

way, they can determine whether the product is saleable to its target

market.

The study covers only high school and college students as the

primary target market because todays generation , mostly teenagers are

the ones who are fond of buying accessories especially personalized items

as an added design to their handbags, mobile phones and other stuff.

This data gathering allows them to have concrete and sufficient

information to engage in this kind of business and compete with the

other possible competitors.

Survey Data

This section illustrates the presentation, analysis and

interpretation data of the study. Note: The researchers purposively

distributed the survey questionnaires equally to the high school and

college levels of both private and public sectors.

8/11/2019 Market 1 - 28

9/29

9

Table 1 Age of the Respondents

Age Frequency Percentage

Teenagers

(13-19) 80 80%

Adults

(20 onwards) 20 20%

TOTAL 100 100%

Table 1 shows that mostly teenagers were the ones who answered

positively that they are fond of personalized products and accessories. It

is because teenagers like to keep up with the trend or something which is

new in fashion. They feel that being trendy is a way of fitting in at school

and in the world and that it is a way of expressing themselves. (Source:

http://answers.yahoo.com/question/index?qid=20080331135655AAzxy

mO)
http://answers.yahoo.com/question/index?qid=20080331135655AAzxymOhttp://answers.yahoo.com/question/index?qid=20080331135655AAzxymOhttp://answers.yahoo.com/question/index?qid=20080331135655AAzxymOhttp://answers.yahoo.com/question/index?qid=20080331135655AAzxymO

8/11/2019 Market 1 - 28

10/29

10

Table 2 Respondents according to their gender

Gender Frequency Percentage

Male 27 27%

Female 73 73%

TOTAL 100 100%

Table 2 shows that majority of the respondents are females. It

implies that it is the females who are mostly engaged and interested in

buying the type of accessories produced by the researchers. Young girls

and modern ladies: the two are conscious of fashion trends in every

period and year, even in every single day. Accordingly, fashion

accessories have turned into a way of life for most modern ladies because

everyone is eager to stand out in the crowd. (Source:

http://www.decorativepaintinger.com/2011/10/why-women-love-

fashion-accessories/)
http://www.hallomall.com/http://www.hallomall.com/http://www.decorativepaintinger.com/2011/10/why-women-love-fashion-accessories/http://www.decorativepaintinger.com/2011/10/why-women-love-fashion-accessories/http://www.decorativepaintinger.com/2011/10/why-women-love-fashion-accessories/http://www.decorativepaintinger.com/2011/10/why-women-love-fashion-accessories/http://www.hallomall.com/http://www.hallomall.com/

8/11/2019 Market 1 - 28

11/29

11

Table 3 Average weekly allowance of the respondents

Average Weekly

Allowance Frequency Percentage

200 and below 25 25%

201 to 400 33 33%

401 to 600 30 30%

601 to 800 6 6%

801 to 1000 2 2%

1001 and above 4 4%

TOTAL 100 100%

Table 3 shows that 25% of the respondents have an average weekly

allowance of 200 and below, 33% have PhP 201-400 and 30% have PhP

401-600. This means that the products being introduced, priced as P

50.00 and P 75.00 per unit, is affordable and reasonably priced for the

target market.

8/11/2019 Market 1 - 28

12/29

12

Table 4 Total number of respondents who like personalized accessories

particularly name tags and chibi dolls to be used as key chains and

accessories

Frequency Percentage

Yes 91 91%

No 9 9%

Total 100 100%

On the given data, 91% of the respondents are fond of personalized

accessories. Thus, it implies that there is a positive response in our

target market regarding the products being offered and wide acceptance

in the market will bring strong possible demands for the product.

8/11/2019 Market 1 - 28

13/29

13

Table 5 How often do you buy accessories?


Often 30 30%

Occasionally 69 69%

Never 1 1%

Total 100 100%

Table 5 shows that 69% of the respondents buy accessories

occasionally but only 30% purchase often. For this reason, the

researchers decided to lessen the weekly production, from 100 pieces to

80, to avoid overproduction and losses.

8/11/2019 Market 1 - 28

14/29

14

Table 6 Preferred size


Small (2inches.) 50 50%

Medium

(3inches.) 39 39%

Large (4inches.) 11 11%

Total 100 100%

Majority of the respondents prefer small sized products over the

other sizes. Hence, since majority of the market favors a small sized

product, the researchers shall focus their production in small

accessories.

8/11/2019 Market 1 - 28

15/29

15

Table 7 What are the features of this product that you like?


Color 20 20%

Size 15 15%

Design 65 65%

Total 100 100%

Table 7 shows the features of the product which the respondents

find attractive. Majority answered that it is the products design.

Therefore, the researchers will expand their line of colors offered to make

the product more suitable. Moreover, for the satisfaction of the

customers, upon making the order, they are given the liberty to choose

what color or design their desired accessory will look like.

8/11/2019 Market 1 - 28

16/29

16

Table 8 What do you think would be the fair price for this product?

Table 10 shows that a greater part of the respondents favor the

least price in the given options. As a result, the researchers shall create

Personalized

Nametag Frequency Percentage

50-150 89 89%

101-150 4 4%

151-200 7 7%

Total 100 100%

Chibi Dolls

50 150 86 86%

101-150 12 12%

151-200 2 2%

Total 100 100%

8/11/2019 Market 1 - 28

17/29

17

and sell the products with a lesser price, P50.00 per nametag and P75.00

per chibi doll, but with a greater and excellent quality.

Table 9 How would you rate our products?


Excellent 27 27%

Very Good 45 45%

Good 27 27%

Poor 1 1%

Total 100 100%

Upon the distribution of the survey questionnaires, the researchers

showed sample products for the respondents to judge and rate. 47% of

them concluded that the products were very good while only 27%

responded excellent. For this reason, the researchers decided to make

improvements and betterment of their produc ts ove rall attributes to

attain excellence.

8/11/2019 Market 1 - 28

18/29

18

Table 10 Would you recommend our products to your friend(s)?


Yes 100 100%

No 0 0%

Total 100 100%

On the provided data, 100% of the respondents answered positively

that they would recommend the products to their friends. It is a plus in

the advertising of the business in view of the fact that word of mouth is

an unpaid form of promotion which spreads fast among the customers

which surely can broaden the market for the business.

COMPETITION

In business, there is always competition involved. Clay Creations

is not the only business who offers personalized products. There are

some establishments which we can consider as direct competitors. These

include Knick-Knacks, Gaisano Mall and any other store which sells

accessories whether personalized or not. Still, the business can compete

8/11/2019 Market 1 - 28

19/29

19

in terms of the uniqueness of the products, the quality of the materials

and the reasonable price of each item.

MARKETING AND SALES STRATEGY

Promotion represents all of the communication that a marketer

may use in the market place. Clay Creations will do sales promotion

which complement personal selling and advertisements such as an

exhibit of tarpaulin outside the main display area. Therefore, it helps a

lot in introducing the product to the target market. Furthermore,

through the help of technology, Clay Creations will at the same time

employ an online shoppe in different social networking sites such as

Facebook, Twitter and Multiply. The business will make their own

website to advertise the product as well as to sell and receive orders.

Possible customers can also visit the store located in Door 5, Eltanal

Apartment Redemptorist Street, Tibanga, Iligan City where they can see

for themselves sample designs or purchase ready-made products. The

business also engages collaborating with event organizers in accepting

special orders such as baptisms, birthdays and wedding souvenirs to

increase sales. Clay Creation will employ cash basis as mode of payment

inside and outside in Iligan before receiving orders.

Product

8/11/2019 Market 1 - 28

20/29

20

Clay Creations is our business name, generally manufacturing

accessories made out of our primary raw material polymer clay. Our

target markets are high school and college students of both public and

private sectors who are, in general, fond of beautifying and embellishing

their bags, cell phones, etc., with accessories. The distinct advantage of

our product compared to other accessories is that ours can be

personalized according to our customers preferred color, size or design.

Place

The manufacturing and display area of our product where all the

processing also takes place will be at Door 5, Eltanal Apartment

Redemptorist Street, Tibanga, Iligan City. The displays are noticeable for

the public since the location is along a highway where all passersby can

see. It is very accessible to the target customers also because of its

proximity to a nearby university.

8/11/2019 Market 1 - 28

21/29

21

Place of Production

Floor Plan

Inside the

Apartment

8/11/2019 Market 1 - 28

22/29

22

Distribution Area

Production

Area

DisplayArea

Office

Office

8/11/2019 Market 1 - 28

23/29

23

Display Area

This 3d picture shows the Head office and plant site of the

business. The two cabinets beside the front windows are the main

display area where the customers can easily see the products.

Price

The product price of the name tag is P 50.00 per unit and P 75.00

for every chibi doll.

Production

Area

DisplayArea

8/11/2019 Market 1 - 28

24/29

24

Nametag:

Account Quantity perNametag

Unit Cost Unit Price

Raw MaterialClay 14.28 g 130.00 18.57Varnish 5 mL 50.00 0.02Keychain 1 pc. 1.75 1.75

Total Cost of RawMaterials:

20.34

Add: Packaging CostCellophane 1 pc. 0.25 0.25Sticker Paper 1 pc. 3.00 0.12

Printing 1 pc. 1.00 0.04 Total Packaging Cost 0.41Add: Labor Cost 1 Nametag 8.00 8.00Total Product Cost 28.75

Total Projected Cost 28.75

Add: Mark-up 21.25

Selling Price PHP 50.00

Mark-up Percent = (Selling price Total Cost)/Total Cost

= (PHP 50.00 PHP 28.75)/PHP 28.75

= PHP 21.25/PHP 28.75

= .74 or 74%

Chibi Doll:

Account Quantity per Doll Unit Cost Unit Price

8/11/2019 Market 1 - 28

25/29

25

Raw MaterialClay 20 grams 130.00 26.00Varnish 7 mL 50.00 0.03Keychain 1 pc. 1.75 1.75

Eyepin 1 pc. 1.00 1.00 Total Cost of RawMaterials:

28.78

Add: Packaging CostCellophane 1 pc. 0.25 0.25Sticker Paper 1 pc. 3.00 0.12Printing 1 pc. 1.00 0.04

Total Packaging Cost 0.41Add: Labor Cost 1 Chibi Doll 10.00 10.00Total Product Cost 39.19

Total Product Cost 39.19

Add: Mark-Up 35.81

Selling Price PHP 75.00

Mark-up Percent = (Selling price Total Cost)/Total Cost

= (PHP 75.00 39.19)/39.19

= .91 or 91%

8/11/2019 Market 1 - 28

26/29

26

Promotion

Strategies involved in the sales promotion of our product will be

through social networking sites such as Twitter, Facebook, Multiply, our

website which is www.claycreationsfs.webs.com, and through tarpaulin

postings outside the project site where all the passersby can see.

Gantt Chart

This shows the project schedule or the Gant Chart of the business,

and the activity period of the business.

ctivities September October November December

Organizing

Planning

Fund

Sourcing

Registration

Purchasing

Promotion

Start o

Operation
http://www.claycreationsfs.webs.com/http://www.claycreationsfs.webs.com/

8/11/2019 Market 1 - 28

27/29

27

Cost of Goods Sold

Cost of Goods Sold per month 10,870.40

Multiplied by 12 months 12Cost of Goods Sold for year 1 130,444.8

Multiplied by 0.1

Increase for the year 130,444.8

Add: COGS (Year 1) 130,444.8

Cost of Goods Sold for year 2 143,489.28

Multiplied by 0.1

Increase for the year 143,489.28

Add: COGS (Year 2) 143,489.28

Cost of Goods Sold for year 3 157,838.28

8/11/2019 Market 1 - 28

28/29

28

SALES FORECAST

Nametag:

40 pcs. per week x 4 160pcs./month

Multiply by selling price x P 50.00

Sales per month P 8,000.00

Number of months per year x 12

Sales for the year 2012 P 96,000

Chibi Doll:

40 pcs per week x 4 160pcs./month

Multiply by Selling Price x P 75.00

Sales per month P 12,000.00

Number of months per year x 12

Sales for the year 2012 P 144,000.00

Total Sales P 240,000.00

8/11/2019 Market 1 - 28

29/29

29

Yearly Projected Sales

YEAR

Annual Demand Selling PriceAnnual

Target SalesChibi Doll Nametag ChibiDoll

Nametag

2012 P144,000.00 P96,000.00 P75.00 P50.00 P240,000.00

2013 165,600.00 110,400.00 75.00 50.00276,000.00

2014 190,440.00 126,960.00 75.00 50.00317,400.00

Note: There is an increase of 15% in annual demand.

Market 1 - 28

Documents

Transcript of Market 1 - 28