Republic of the PhilippinesPOLYTECHNIC UNIVERSITY OF THE PHILIPPINESSANTA ROSA CAMPUSCity of Santa Rosa, Laguna

HIBISCUS SOAPHerbal and Moisturizing Soap

SUBMITTED BY:John Kenneth V. CapunitanAndrea S. Dela CruzMariel Danica M. GalasaoRachelle M. RamosBSBA MM 3-1

SUBMITTED TO:Prof. Gilfred A. Acierto

September 2014MARKETING ASPECTIntroductionWhen establishing a business, it is needed to have a careful analysis of the market. The sales and income of the business would be dependent on the market. Market then is defined as the set of actual and potential customers who need and have the ability and willingness to buy a product.Likewise, marketing is considered to be the aggregate function involved in transferring, standardizing, financing, risk-bearing, and supplying market information.In this regard, this aspect of the study seeks to determine the following:1. The description of the market.2. The general marketing practices and proposed marketing programs focusing on products, price, place and promotion.3. The conduct and result of marketing research.4. The demand and supply analysis.5. The projected sales of the product and systems and forms design to be used.

Market DescriptionThe proponents choose Santa Rosa City, specifically Brgy. Balibago, as its initial target area. Since they are current students of Polytechnic University of the Philippines Santa Rosa Campus, the proponents decided that the city where their school is located would be an ideal place. Likewise, the City is highly industrialized with the opportunity of having greater target market. Furthermore, it has been revealed that City of Santa Rosa, Laguna is recently promoting Gumamela to be its locality's flower. In this regard, the business' product containing Gumamela is perhaps a phenomenal one. The business will be situated at a rented space in Brgy. Balibago, Santa Rosa, Laguna. The proponents would like to capture the population of the barangay especially the households or families residing in it as their target customers. However, since the business is still in its introductory stage and would like to cut costs on building and operating its own selling store, Team Hibiscus Company (THC) decided to just distribute their products specifically to individual establishments that already sell soaps. These establishments will then be their actual target market which includes 34 drugstores, 19 convenience stores, 7 supermarkets, and 5 skincare boutiques.General Marketing Practices Product 1. Product NameHIBISCUS SOAP Herbal and Moisturizing soap

2. Reasons for Choosing the Product NameThe product's name was chosen to create certain curiousness and interest among people about the product when it is heard. People all know what soap is but perhaps few are aware on what "HIBISCUS" is. This term is derived from the family name of the product's special ingredient which is Gumamela plant that has a scientific name of Hibiscus rosa sinensis. 3. Properties of the ProductA competitive advantage of the product over those available in the market is its health benefits. The Hibiscus Soap is a unique one that nourishes skin and help in curing skin problems. The product contains Gumamela flowers and leaves extract. This plant is known for its several medicinal characteristics which are: emollient- something that softens or soothes; making soft or supple especially to the skin. anodyne- something that soothes, calms, or comforts. refrigerant- allays or relieves heat or fever. anti-infectious anti-inflammatoryMoreover, Hibiscus flower also contains antioxidants and high level of Vitamin C which protects body against diseases and gives skin a special glow. Finally, red Hibiscus is also said to act as an anti-solar agent by absorbing ultraviolet radiation for your skin. Other components of the soap which are the virgin coconut oil, lye, and fragrance add cleansing and moisturizing factors to satisfy customers better.4. Packaging

Hibiscus soap will be packed into boxes just like the typical soaps are. THC preferred a biodegradable packaging to be eco-friendly. Likewise, they are also aware of the City's prohibition on usage of plastics. However, to make it quite unique, the sides of the box will have openings covered by acetate which is transparent to serve as windows so that soap's appearance can be readily seen even without yet opening the box. Meanwhile, its label will consist of the product's logo, name, and tagline on top surface while other important information about the product like ingredients, manufacturing date, manufacturer, and contact details will be on the bottom surface. Amazing facts about gumamela will also be part of the label. PriceThe Hibiscus Soap will be priced with competition in mind. THC is very much aware that their product is neophyte in the market with numerous and giant competitors. The firm is not concerned with setting high prices to signal prestige, nor is it attempting to achieve goals immediately by offering low prices. Instead, value pricing based on Cost-Plus Pricing is practiced so that customers would feel comfortable purchasing. Proponents feel that a mark-up of 25% over the total product cost is very reasonable and competitive at this initial stage. Consequently, unit price is estimated at Php25.00 which is relatively lower compared to other existing herbal and moisturizing soap. PlaceAs has been said, the business will be located at Brgy. Balibago, Santa Rosa City, Laguna. The products will be distributed within the selected establishments nearby the area. Over the next coming years, THC seeks to expand distribution to nearby cities like Bian and San Pedro. PromotionTeam Hibiscus Company plans to promote its product first by offering free mini samples to target clients. Upon agreement, they plan to supply minimal quantity for introductory. The use of tarpaulin posters and flyers to inform the public of the existence of the product is also planned. Other general promotional measures to market the product will be free delivery for volume purchases, regular and prompt supply, and subsequent word of mouth advertisements.Marketing researchMarketing research also called market research is a scientific discovery method applied to marketing decision making. It generally comprises identification of a specific market and its measurement and characteristics, identification of a need or want and the characteristic of the good and service that will satisfy it and identification of the preferences, motivations and buying behavior of the targeted customer.Part 1 (Respondents profile)

Name of establishment (optional)

Table 1

Year/s of existence

Year/s of existenceFrequencyPercentage (%)

5-less1116.92%

6-101827.69%

11-152436.92%

16-above1218.46%

TOTAL65100%

The table indicates that the year of existence of the establishments is mostly 11-15 years which got the highest percentage of 36.92%. Meanwhile, the lowest percentage is from 5 and less years which is 16.92%Table 2

Type of establishment

TypeFrequencyPercentage (%)

Convenience stores1929.23%

Drug stores3453.31%

Skincare boutiques57.69%

Supermarkets710.77%

TOTAL65100%

The table shows that most of the respondents are drugstores with a frequency of 34 and percentage of 53.31%. It is then followed by the convenience stores of the frequency of 19 and percentage of 29.23%. Next are the supermarkets with a frequency of 7 and percentage of 10.77%. Last are the skincare boutiques of a frequency of only 5 and percentage of 7.69%.Table 3

Selling of soap

Do you sell soap?FrequencyPercentage (%)

Yes65100%

No00%

TOTAL65100%

The table indicates that all of the 65 stores sell soap with a percentage of 100%.Table 4

Preferred brand of soap

Your best seller?FrequencyPercentage (%)

Palmolive2538.46%

Safeguard1320.50%

Silka1523.08%

Others1218.46%

TOTAL65100%

Based on the table above, Palmolive with a frequency of 25 and percentage of 38.46% is their most saleable soap. Meanwhile, the least saleable are the other non popular brands with a frequency of 12 and percentage of 18.96%.Table 5

Cost of soap

How much is the cost of the soap? (Php)FrequencyPercentage (%)

20-less1015.38%

21-302030.77%

31-402538.46%

41-above1015.38%

TOTAL65100%

The table shows that the soap with the price range of 31-40 got the highest frequency of 25 and percentage of 38.46%, followed by 21-30 and the last are 20-less and 41-above.Table 6

Factors considered in selling soap

What are the things you considered in selling soap?FrequencyPercentage (%)

Quality1827.69%

Quantity1218.46%

Price2233.85%

Brand1320%

TOTAL65100%

The table indicates that price with the frequency of 22 and percentage of 33.85% is the first thing the establishments consider in buying soaps for resale. Quality comes second with the frequency of 18 having the percentage of 27.69%. The last factor that they consider is the quantity with the frequency of 12 having the percentage of 18.46%.Table 7

Frequency of purchase

How often do you buy soap for resale?FrequencyPercentage (%)

Daily1827.70%

Weekly3046.15%

Monthly1726.15%

TOTAL65100%

The results above indicate that the respondents usually buy products soaps weekly which have the frequency of 30 equivalents to 46.15%. It is followed by daily which have the frequency of 18 equivalents to 27.70%. Least is monthly which have the frequency of 17 equivalents to 26.15%.Table 8

Preferred buying quantity

In what quantity do you buy soaps? (Pieces)FrequencyPercentage (%)

50-less1523.08%

51-1002030.77%

101-1501827.69%

151-above1218.46%

TOTAL65100%

Based on the results above, the most preferred buying quantity is 51-100 pieces having the frequency of 20 and a percentage of 30.77%. On the other hand, the least is 151-above pieces having the frequency of 12 and percentage of18.46%.Table 9

Willingness to sell

Do you prefer to sell another brand of soap? (Hibiscus soap)FrequencyPercentage (%)

Yes65100%

No00%

TOTAL65100%

The table shows that all the respondents agree to sell new brand of soap which implies that hibiscus soap is acceptable in the market. Market ShareAlthough THC is creating a new variety of soap product, there are already many kinds of soap existing in the market, some of which are manufactured by well-known companies. According to the marketing research result, there were already preferred brands of soap by target clients because these are their bestsellers. These brands are the huge competitors of Hibiscus Soap. With this in mind, a market share of 10% is expected by the company as being reasonable for the business' market entry. In the succeeding years, however it is assumed that there will be 2% increase in the said share that is 12% in 2015 up to 20% in 2019.

Demand and Supply AnalysisAnalysis of the demand and supply is one major consideration for all businesses in order to survive in the respective industry and maintain profitability. The determination of demand is important especially for new businesses to determine if it is feasible and profitable. The following are some importance of determining the demand: To determine if there is enough demand for the business to sustain. To know if the product is acceptable to the market. To know how many people demand for the product. To identify the market share of the business.Meanwhile, the determination of supply enables a firm to know if they can still handle the demand of the market. The following are some instances why determination if supply is important: A major consideration in calculating the production expenses related in manufacturing the product. Guides in purchasing materials necessary for production. Helps in determining if the production capacity can still handle the demand for the product.

DemandDemand has been defined as the aggregate quantity of a commodity that a consumer has the will and ability to pay. Since the target market of THC is within Santa Rosa, a City which promotes Gumamela as their locality's native flower, the proponents expect to have a relatively high demand of their product. Likewise, soap is indeed one of the basic hygiene needs of every human.Demand schedule

YearEstablishmentsDemand (grams)

2014651,560,000

2015651,872,000

2016652,184,000

2017652,496,000

2018652,808,000

2019653,120,000

Assumptions:1. For the next five years, still 65 establishments will be the target market if THC.2. Market share of 10% is assumed on the first year which will then increase by 2% each succeeding year. 3. To compute the aggregate demand, the following formula will be used: n x assumption x grams x 12 months 65 x 200 x 100g x 12 = 15,600,000 grams 15,600,000/100g = 156,000 pieces Based on the National Statistics Office data, the total number of establishments in Brgy. Balibago that is able to sell soap are 65 (n). To get the demand for one year, multiply the total number of stores to the assumed quantity of soap sold per store times 12 months.4. To get the actual demand for Hibiscus Soap, multiply the market share each year to the aggregate demand.

Supply In the initial stages of production, operating at 100% capacity cannot be assumed. There are expected initial operating problems, raw material shortages, distribution difficulties, and others. Hence, the company cannot sustain fully the actual demand of its product.Supply schedule

YearSupply (grams)Supply (pieces)

20141,152,00011,520

20151,372,00013,720 (13,824)

20161,646,40016,464

20171,975,70019,757

20182,370,80023,708

20192,845,00028,450

Assumptions:1. The company assumes a 20% increase in production capacity or supply every year.2. Multiply the percentage of increase to the number of boxes or pieces on the current year to get the succeeding year supply.

GapDemand and Supply gap

YearDemandSupplyGap

20141,560,0001,152,000408,000

20151,872,0001,372,000500,000

20162,184,0001,646,400537,600

20172,496,0001,975,700520,300

20182,808,0002,370,800437,200

20193,120,0002,845,000275,000

SalesSales are the total amount of goods or services sold by a firm. The projected sales or sales forecast of the Hibiscus Soap is presented below.Projected sales

YearAmount (Php)

2014288,000

2015343,000

2016411,600

2017493,925

2018592,700

2019711,250

Proposed Marketing Program ProductAs a new concept on the market, Team Hibiscus Company offers a soap which is for retaining healthy, clean, and moisturized skin and curing skin problems such as cracks in feet, boils, and abscesses. These benefits will surely satisfy those health conscious individuals of these days. PriceHibiscus Soap is considerably low priced at Php25.00 for a 100g pack. The firm will also offer trade discounts and even credits to valuable customers who buy in bulk. PlaceSince the business is in its beginning stage, the proponents decided to just distribute their products to the 65 establishments within Brgy. Balibago who already market soap to consumers. In this way, the business will only need to rent a room as their production site, thereby cutting costs. Over the succeeding years, THC seeks to increase distribution to nearby cities and might as well have the opportunity to build their store. PromotionIn order to promote their product in its first month, the business will create and distribute flyers along commercial areas like in Balibago Complex and along sidewalks. It will also provide tarpaulins on as much as possible each store to which they will distribute their products.

To encourage their target market to sell the soap or as a token of appreciation in partnering with them, the business will give free mini samples to owners or managers of the respective stores. In a way, this will

also serve as their free trial on how good the quality of Hibiscus Soap is and make it easy for them to recommend it to their customers.Furthermore, the firm will offer a promo of "Buy5 Hibiscus Soap, Get a Bath Towel" to its clients that may also be offered by the stores to their customers. Meanwhile, the proponents will also create a Facebook page to promote the business to online surfers and also as a means of accepting orders if ever. (On the next months of operations, THC will then give Patronage Reward or incentive in proportion to the volume regularly purchased; trade discounts; and even allowance for credits after assessing the credibility in paying of their clients- may be omitted because it should manifest in the financial aspect)Systems and Forms Design

PRODUCTION ASPECTIntroductionBack in the ancient times there are evidences that people already used soap back then. The first concrete evidence we have of soap-like substance is dated around 2800 B.C. The first soap makers were Babylonians, Mesopotamians, Egyptians as well as the ancient Greeks and Romans.An execution of ancient Babylon revealed evidences that Babylonians were making soap around 2800 B.C. Babylonians were the first to master the art of soap making. They made soap from fats boiled with ashes. Soap was used in cleaning wool and cotton used in textile manufacture and was used medicinally for at least 5000 years. In Egypt 1550 B.C. the Ebens papyrus reveals that the ancient Egyptians mixed animal and vegetable oils with alkaline salts to produce a soap-like substance. While according to the Pliny the Elder, the Phoenicians used goats tallow and wood ashes to create soap in 600 B.C. Others, like Romans made soap from urine, cells, animal fats and plant ashes and they named the product saipo, from which the word soap was derived.Over so many years, soap managed to influence itself into our culture and way of life. As becoming as one of our basic needs most primarily as means of maintaining personal hygiene. Soaps lived through countless waves of improvements that enabled it mature into its modern state. With the used of new developed ways to make soap there are types of soaps produced to its different uses. There are soaps use for bathing, cleaning, cosmetics, medicinal and others. Those needs and wants made the soap making industry reach for those different demands of the customer. So #TEAMHIBISCUS think of a product thats not just for bathing and cleaning, but also for curing some skin problems and illnesses. With the use of Hibiscus rosa sinensis or Gumamela extract, they can satisfy their customers with those benefits.Product DescriptionGumamela (Hibiscus rosa-sinensis Linn), the major component of Hibiscus Soap, is cultivated as an ornamental flower throughout the Philippines. It is common on Mt. Banahaw. Gumamela flowers are used as an expectorant in bronchitis, for general coughs, and as a refrigerant drink in fevers. Aside from that, gumamela also help to cure skin diseases such as abscesses, carbuncles and boils. It also a natural emollient, used for softening or healing the skin and has a high percentage of Vitamin C because of its powerful natural Botox type effect. Hibiscus contains a firming agent, which not only has a calming effect on skin, but also smoothes out wrinkles, giving a person healthy, youthful skin.Bringing those benefits of gumamela, #TEAMHIBISCUS made a soap using an extract from gumamela. It can facilitate the soap product not just for bathing and cleaning but also for curing problems and illnesses on skin. In addition, the company uses virgin coconut oil that appends the soap to become moisturizer, and the scent oil or fragrance for the aroma. Lye solution is also used in the process, and red coloring powder for the reddish color of soap.( why the soap is red, why to put lye) ComponentsIn making 100 grams hibiscus soap, the ingredients needed are the following:Virgin coconut oil ( 45 grams)

Virgin coconut oil is known for its nice fragrance, taste, antioxidants, medium chain fatty acids (MCFA), and vitamins, among other things.

Lye or sodium hydroxide(25 grams)The lye is mixed with water, and then base oils, butters and fragrances are added. The gradual chemical reaction between the lye and the fats eventually produces a solid soap

Gumamela extract(30 grams)Gumamela extract helps to cure skin diseases such as abscesses, carbuncles and boils. It also softens and heals the skin.

Red coloring powder(pinch)Red coloring powder makes the soap to become reddish in color and helps the soap to become more attractive on eyes.

Scent oil or fragranceScent oil or fragrance helps the soap to have a good aroma and smell.

Distilled waterDistilled water is pure liquid that go through the process of distillation. It is used to dissolve the sodium hydroxide.

Production process Process

PRODUCTION AREALEGEND:Operation

StorageIn making the hibiscus soap, the procedures are listed below:1. Preparation of gumamela extract, virgin coconut oil, red coloring powder, scent oil or fragrance, distilled water and sodium hydroxide.In preparation of ingredients, the operator prepares and measures the ingredients of hibiscus soap as well as the equipments on making the soap. Virgin coconut oil will be heat by the use of stove and do not let the virgin coconut oil boil. Distilled water will be pour into the sodium hydroxide to dissolve it and create the lye solution.2. Mixing of gumamela extract, virgin coconut oil, red coloring powder, scent oil or fragrance, distilled water and lye solution or sodium hydroxide.In this stage, the operator will mix all the ingredients through the use of mixing machine. First, pour the virgin coconut oil on the container. Add a little volume of lye solution frequently. Mix it for more or less half hour, until it becomes thick. Next, put in the scent oil or fragrance and pinch of red coloring powder. Continue to mix until the mixture becomes substantial.3. Transferring the mixture into the molding cups or tray.After the mixing procedure, the operator will transfer the mixture into the molding tray. Store in a shelf for almost 24 hours and wait until it becomes firm. And a tray can create 40 soaps.Production capacity:DayWeekMonthYear

Pieces of soap4024096011520 pieces

Number of grams4,00024,00096,0001,152,000 grams

4. Cutting the soapAfter 24 hours, the next step is to cut the soap. The operator will cut the soap from the molding tray by soap cutter.5. PackagingThe last step is packaging. In this stage, the operator will check first the soap if it has any damage or crack before putting it into the box. The finished products will place on the finish product storage.

Equipments/Tools/Machines neededOffice equipment

DescriptionFunction

ChairA chair is a piece of furniture with a raised surface used to sit on, commonly for use by one person

TableA table is a form of furniture with a flat horizontal upper surface used to support objects of interest, for storage, show, and/or manipulation

ComputerA computer is a general purpose device that can be programmed to carry out a set of arithmetic or logical operations automatically.

PrinterA printer is a peripheral which makes a persistent human-readable representation of graphics or text on paper or similar physical media.

TelephoneA telephone, or phone, is a telecommunications device that permits two or more users to conduct a conversation when they are not in the same vicinity of each other to be heard directly.

VaultA secure space where money, valuables, records and documents can be stored.

ClockA clock is an instrument to indicate, keep, and co-ordinate time.

Light/fluorescent lampA low pressure mercury-vapor gas-discharge lamp that uses fluorescence to produce visible light.

CCTVA video surveillance use of video cameras to transmit a signal to a specific place, on a limited set of monitors.

Office supplies

DescriptionFunction

Bond paperA high quality durable writing paper used for letterheads, other stationery and as paper for electronic printers.

Ball penA ballpoint pen is a writing instrument which dispenses a viscous ink from an internal reservoir through the rolling action of a metal ball at its point.

FolderUse to holds loose paper.

ScissorsA cutting instrument having two blades whose cutting edges slide past each other.

PuncherA tool usually in the form of a short rod of steel that is variously shaped at one end for different operations (as forming, perforating, embossing, or cutting).

StaplerUse to joins sheets of paper or similar material by driving a thin metal staple through the sheets and folding the ends.

GlueA solution of glue used for sticking things together.

EnvelopeA common packaging item usually made of thin flat material. It is designed to contain a flat object, such as a letter or card.

Binder clipsUse to binds sheets of paper together.

LogbookOfficial record book of with periodic entries.

Machines and Equipment

MixerA kitchen utensil which uses a gear-driven mechanism to rotate a set of beaters in a bowl containing the food to be prepared. It automates the repetitive tasks of stirring, whisking or beating.

Soap molderUse to mold the mixture in a solid soap.

Soap cutterUse to cut soaps into pieces.

Weighing scaleUse to measure weight.

ShelfServes as storage of soaps.

StoveUse to heat and cook.

Exhaust fanBrings coolness and fresh air into enclosed spaces.

Wall fanIt moves airthey do not directly change its temperature and it brings coolness.

Fire extinguisherAn active fire protection device used to extinguish or control small fires, often in emergency situations.

The office equipments, tools, office supplies and machines will be used by the business to facilitate their day to day operation. Office equipment and office supplies will be used by the proponents for keeping the records, printing of needed document and other office works. Machines will be used during the production in manufacturing the products and will be placed inside the production area. Production ScheduleAs a new established business, the proponents will be the transitory workers and will do the operation of the business. They will work six days in a week, Monday-Saturday with accumulating 8 hours of work from 8 am to 5 pm and an hour for lunch break from 12 pm to 1 pm.Project site Site location

The business will be found at Barangay Balibago, City of Santa Rosa Laguna. Site layout

Facilities BuildingAt this initial stage, the business will not build its own building rather it will just rent a minimal space at Barangay Baligabago, City of Santa Rosa Laguna enough to be its production and working site. Floor plan

UtilitiesThe business will use water provided by the service of Laguna water. The water bills will be pay monthly by the proponents.The proponents will use electricity provided by the service of Meralco. The electric bills will be pay monthly by the proponents.The business will use Liquefied Petroleum Gas (LPG) provided by the service of Petron Gasul.The proponents will used the business tricycle service for buying of raw materials and distributing of soaps to different stores. Materials handlingThe proponents consider machines and equipment and its design to maintain the quality of products. For that reason, a program of regular inspection will be planned in the business to avoid costly equipment failures. The firms decided to get keen on scheduled maintenance as their maintenance work to clean the equipments, tools and machines of the business. Waste disposalWaste of the business will be collected everyday by the garbage collectors. Therefore the proponents conclude that the production of business could be free from waste, clean and safely disposed garbage thats comes from daily operations. System and forms designStandard operating procedures Cleanliness and orderliness. Always follow precise handling. Always wear proper uniform. Always ensure the quality of ingredients and the product. Inventory of raw materials or supplies.

DOCUMENTATION