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CHAPTER I

BACKGROUND OF THE STUDY

This chapter presents the study of establishing Spotlight on Style Online

Shop in the Riverside Mansion commercial building ground floor located at F.

Laurena St. Brgy. 1 Tanauan City Batangas. This contains the introduction,

statement of the problem, objective of the study, significance of the study, scope

and limitations of the study, review of related literature, definition of terms and

methods and procedures.

INTRODUCTION

Fashion is a popular style or practice, especially in clothing, footwear,

accessories, make-up, body or furniture. It literally means clothing that has been

relegated to special senses like fancy dresses. Fashion is a distinctive and often

constant trend in style in which a person dresses. Changes in costume often took

place at times of economic or social changes.

The purpose of this study is to help the business valued customers to have

a fast and efficient way of buying fashion wear and accessories. As all of the

people know that they are now in the world where high technologies evolve, so in

accordance to that idea, the system will help everybody to access a direct buying

of items over the net and provide them an update of the items they have chosen,

through cell phone. This kind of service set up also requires fewer head count to

create a strong customer service team. Everybody can access it especially those

persons who have the hard time of going outside their houses just to buy the
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clothes and accessories they need. They just need a computer with an internet

connection and a cell phone for updating information. They need it because this

will provide them a meaningful experience of shopping things. This will mainly

give them convenience because it will be opened 24 hours. One can avoid

crowded malls or retailed stores resulting in long lines, and no parking. It also

gives them detailed information of the items they want with a less price.

The proponents business doesn’t only proposed online shopping, it also

includes fashion assistance online, and it is an opportunity to enjoy a really

creative career. This business involves considerable hard work and lot of hours on

the job. To run an online shop with fashion assistance requires a good sales talk

wherein your ability is enough to convince customers.

Spotlight on style aims to satisfy their customers on their fashion sense by

providing the latest and newest styles on the country and by assisting them the

right clothes that will fit them. Social media enables happy and satisfied

customers to easily share the products and services to their friends and family.

Spotlight on style is needed by customers who want an easier shopping, less time

consuming and worry less at affordable price and quality customer service.

BACKGROUND OF THE STUDY

The proponents came up on opening an online business because

consumers are definitely more open, comfortable and direct when communicating

with business online over social media. Online businesses are now easily able to

interact with the customers through different websites.

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Spotlight on Style aims to solve customer problem and also building a

relationship with them. Unlike call centers, Spotlight on Style will respond

simultaneously on calls to easily get customers satisfaction. Spotlight on Style

will satisfy every customer through immediate response and solution to their

fashion problems.

STATEMENT OF THE PROBLEM

The study aim to make a commercial website of Spotlight on Style online

shop to gives people opportunity to know the business and services that they offer.

Specifically, this feasibility paper focuses its discussion to answer the following

question.

1. Market Study

1.1 What is the existing demand in the market to be fulfilled by the

proposed business?

1.2 What marketing strategies that can be used for the promotion of the

business enterprise?

1.3 What are the strengths, weakness, opportunities, and threats of the

proposed business?

1.4 Who is the target market of the business?

1.5 What channel of distribution that best fit for the business operation?

2. Management Study
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2.1 What form of business organization that can be used by the proposed

business?

2.2 What business permits and licenses needed as a basis of legal

document for the operation of the business?

2.3 What organizational structure that can be appropriately used for the

business enterprise?

2.4 What job description and job specification that each position needed to

ensure the good quality control?

2.5 What organizational/ business policies that can be implemented by the

proposed business?

3. Technical Study

3.1 What operation process and operation schedule will be use by

Spotlight on Style in their service?

3.2 What available resources will be needed for the operation?

3.3 What tools and equipment as well as furniture’s and fixtures that can

be utilize for the business operation?

3.4 What strategic plant location and plant lay out of the business

enterprise?

3.5 What sanitation process, labor requirement and safety consideration

that can be used and be implemented by the proposed business?

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4. Financial Study

4.1 What financial plan that can be used by the proposed business

enterprise to ensure that the operation will meet its cash need?

4.2 What is the source of financing by the proposed business enterprise?

4.3 How to properly allocate the financial resources?

4.4 What will be the firm’s profitability and liquidity?

4.5 What is the overall operating cost and revenue projection?

5. Socio-Economic Study

5.1 What is the social implication of the proposed business service?

5.2 What is the economic implication of the proposed business service?

5.3 What is the environmental implication of the proposed business

service?

OBJECTIVE OF THE STUDY

1. Market Study

1.1 To determine if there is an existing demand in the market to be

fulfilled by the proposed business

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1.2 To identify the appropriate marketing strategies that will bring profits

1.3 To know the proposed business strengths, weaknesses, opportunities

and threats

1.4 To determine if the number of customers who will suffice the existence

of the proposed project

1.5 To determine the channel of distribution that best fit for the proposed

business.

2. Management Study

2.1 To determine the form of business organization to be used by the

enterprise

2.2 To identify the business permits and licenses needed as a basis of legal

document for the operation of the business

2.3 To create an organizational structure appropriate for the business

enterprise

2.4 To set job description and job specification for each position needed to

ensure good quality control

2.5 To establish an organizational/ business policies for employees, as well

as their working hours and condition, salaries, benefits, incentives and

compensation scheme.

3. Technical Study
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3.1 To deliver high quality service and product at the lowest possible cost.

3.2 To access the availability of the resources needed for the operation

3.3 To identify the tools and equipment as well as the furniture’s and

fixtures that can be utilize by the proposed business

3.4 To established a strategic plan location and plan lay-out for the

business

3.5 To determine the sanitation process, labor requirement and safety

consideration that can be used and be implemented by the proposed

business enterprise.

4. Financial Study

4.1 To find out the essential financial planning to ensure that the project

will meet its cash need

4.2 To determine the necessary source of financing that will be used to

support the business

4.3 To properly allocate the financial resources

4.4 To know the firm’s profitability and liquidity

4.5 To measure the overall projections and operating cost and revenue.

5. Socio-Economic Study

5.1 To determine the Social Implication of the proposed business service

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5.2 To determine the Economic Implication of the proposed business

service

5.3 To determine the Environmental Implication of the proposed business

service.

SIGNIFICANCE OF THE STUDY

To the researchers themselves, this study will help the researchers in

preparing themselves in engaging and establishing businesses in the near future

and apply what the researchers had learned.

To Tanauan Institute library, this will serve as a reference guide for the

researchers and other related researchers in the near future.

To the consumer, the main concern of the business is to propose a

branded kind of fashion wear that is affordable and for them to provide

information that will serve a basis on what to consider in choosing online shop

service.

To the suppliers, the result of this study will be a good resource for

identifying the demand of the online shop service operation.

To the future researchers, this study will serve as guide and additional

information in feasibility writing.

SCOPE AND LIMITATION

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This feasibility study deals with operating, selling, and determining the

viability of the proposed business “ Spotlight on Style “ a online shop with

fashion assistance which is located at F. Laurena St. Brgy. 1, Tanauan City

Batangas.

The proponents brainstorm for the ideas of location, but the location that

the business operating firm will be in F. Laurena St. Brgy. 1, Tanauan City

Batangas. The researchers consider anyone who is seeking a good quality of

fashion wear for an event or in any occasion considering the population of the

barangay’s in Tanauan City as a target market.

In terms of service, the service that the business will be offer is limited on

delivering the order of the consumer and also the product that will be deliver on

the costumer is still on a good quality.

REVIEW OF RELATED LITERATURE

From the study of Pan ( 2007, p. 5 ), the author cited from Engel,

Blackwell and Miniard ( 1990 ), that defines purchasing intention as a

psychological process of decision making. According to him, purchasing decision

process is when the relevant information was search by the customers that are

motivated by the fulfillment of demands according to personal experience and

external environment, then after accumulating a certain amount of information ,

they begin to evaluate and consider, and finally after comparison and judgment,

they make the decisions on certain products.

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According to Monsue,Delleart and Ruyter ( 2004 ), there are five external

force to understand consumers intention to purchase in the internet in which the

consumer personality, situational factors, product characteristics, previous online

shopping experience, and the trust in online shopping. Consumer’s traits includes

their demographic factors such as age, income, educational level and gender will

lead them to have an intention to shop online. For age factor, consumers that are

aged under 25 has more potential to shop online because of their interest in using

new technologies to search for product information compare and evaluate

alternatives ( Wood, 2002 ). For educational level higher educated consumers are

more likely to use internet for their shopping medium because they are more

computer literate ( Burke, 2002 ).

Time is also perceived as one of a factor that relates with intention to

purchase in a shopping context. It is believed that consumers have their own

perception of time, whether or not to shop from the internet. According to Hansen

and Jensen ( 2009 ) , accomplishing a shopping trip as soon as possible refers to

the time-saving oriented consumers and they prefer store choices favoring quick

shopping, people who dislike shopping and approaching for time saving retail

stores refers to the economic shoppers or known as ‘ problem solvers ’. In online

shopping it requires less effort and better decision-making for consumers who out

to purchase at the e-store ( Jiang and Rosenbloom, 2005 ). Shoppers may save

their time in e-shopping because they do not have to go through any effort on

travelling to a mall or saving their time in other psychology factors such as

traffics, etc. Online shopping increases search efficiency by eliminating travelling

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costs and psychological costs bring by e-shopping ( Jayawardhena et. Al., 2009 ).

Comparing online and traditional shopping found that internet shopping was

viewed as saving more time.

DEFINITION OF TERMS

For better analysis, interpretation and understanding of this Feasibility

Study, the researcher presents here under the terms operational used in this

undertaking.

Online Shop

A type of business done through the use of computer/ laptop and an

internet connection.

Customization

To change (something) in order to fit the needs or requirements of a

person or business. In this study it refers to the customer’s option to choose what

kind of clothes they want.

Local Hobbyists

A person who engages in an activity solely for fun and continually

participating in a particular hobby and one who can acquire substantial skill and

knowledge in that area.

Online Fashion Assistance

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A unique service that the proposed business Spotlight on Style will offer.

TARGET MARKET

The proponents target customers are those who are most likely to buy

from them. Resist the temptation of fashion to be too general in the hopes of

getting a larger slice of the market. It refers to the household in barangays of

Tanauan City in which the fashion online business will be offered.

METHODS AND PROCEDURES

This part of the study includes methodologies to be used by the proponents

such as method of collecting data and instrument, statistical treatment of data and

data gathering procedures in order to come up with an accurate result of the study.

The proponents are going to use the appropriate methodology for the study, to

have the best result for the study.

The type of method to be used by the proponents in gathering data and

infos is descriptive method in the form of interviews and survey questionnaires.

The proponents conduct a surveys to the people living in different barangays here

on Tanauan City.

Descriptive method is a purposive process of gathering, analyzing,

classifying and tabulating data about the prevailing condition, practices, beliefs,

processes, trends and cause-effect relationships and then making adequate and

accurate interpretation about such data without the aid of statistical method.

In addition, the method of dealing with what is designed for the

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researchers t gather infos about the present condition, status or trend and dealing

with what are prevailing is generally descriptive method. Descriptive methods are

adapted by the proponents in order to find out diff conditions and situations that

will affect the consumers behavior to the business operation.

DATA GATHERING INSTRUMENT

The proponents will be using questionnaires in data gathering to get the

necessary details and information that are needed in this study. The proponents

choose questionnaires as a data gathering instruments simply because it will be

easier for them to gather information on the potential customers and competitors

through the choices that will be given in the questionnaire. Questionnaires is a set

of statements which has a connection to the study and as well as the respondents

specific information. It is design to extract information from the respondents.

The proponents prepared a questionnaire with two parts. The first part was

about the respondents profile which include the respondents name ( optional ),

age, and gender. The second part was a set of questions that will be answered by

the randomly choose respondents on Tanauan City. The proponents will make sure

that every detailed that will be put on the questionnaires will be kept

confidentially.

DATA GATHERING PROCEDURE

Proper and careful data gathering procedure was observe to come up with

a more accurate result. Proper data gathering instrument is also considered before

proceeding on surveying.
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First, the proponents get the total number of household population to the

Office of the City Planning and Development. After the determination of the total

target population, the proponents computed the sample size to be used in survey.

After the population and sample size was determined, the proponents

prepared the survey questionnaire. They ensure that the questions were enough

items to collect data to cover all aspects of the problem and to answer all the

specific questions. An introduction about the study and detailed instructions was

written to brief them of who are doing the survey, the purpose and how they are

supposed to answer the questionnaire. It was submitted to their adviser for

approval. And after it was checked the suggestion made by the adviser were

incorporated to the final questionnaire. After the questionnaire was validated, the

proponents distributed 400 questionnaires in their target area, Tanauan City,

Batangas.

After the distribution of unanswered questionnaires and after the

collection of this, the proponents tallied the answers of their respondents for the

purpose of computing the projected demand and supply.

The proponents analyzed and interpreted the collect data from the result of

the survey. The extracted information was used to get same relevant for the study.

STATISTICAL TREATMENT OF DATA

To determine the service potential of “ Spotlight on Style ” and its

projected demand and supply, statistical straight line method or the Slovin’s
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formula was used. The study used simple random sampling technique to make it

convenient in selecting the respondents.

N
N=
1+ Ne²
Where: n = sample size/population

N = is the total number of 2016 household population of Tanauan City

e = is the estimated margin of error ( 5% )

n= 144,334
1+144,334(5%)²
= 399

GENERALIZATION

This chapter includes all about from the business itself up to the extra

service that it will offer.

The proposed business is named “Spotlight on Style”, from the name itself

you can conclude that the main focus of the business is about styling. Spotlight on

Style was not just an ordinary online shop because of the extra service that it will

offer which is the Online Fashion Assistance, which will be beneficial to the

customers by means of showing them the overall look of their desired product

when it is in the body. The business will be located at F. Laurena St. Barangay 1

Tanauan City Batangas, this is for easy transaction to the customers and suppliers.
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CHAPTER II

MARKET STUDY

The market study is considered as the basis of the whole study. This

chapter involves the present and future supply and demand for the product,

competition, selling prices and marketing plan for the product. Also the roles of

the industry in the national economy and the national policies, priorities and

targets related or assigned to the industry.

OBJECTIVES

The proponents aims to achieve the following objectives:

1. To determine if there is an existing demand in the market to be fulfilled.

2. To help the customers in choosing new designs that will fit them.
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3. Spotlight on Style will improved services to satisfy their customers.

4. To build a strong communication with the customers.

5. To solve the customer problem about fashion sense.

BUSINESS NAME

The proposed name for the business is “ Spotlight on Style ” derived from

the idea of having a good fashion sense with the help of social media wherein the

business includes an online fashion assistance to help the customers to choose the

best attire that will fit to them .

The right name for a business can make it the talk of town especially when

it catches the customer’s attention because of the uniqueness of it. The proponents

plans to build a business wherein the proponents will sell different kind of clothes

will be bought wholesale from the supplier and sell retail in the customers.

Spotlight on style will sell clothes that will best fit you on any occasions

like birthdays, weddings, promenade, parties, meeting, & etc.

ANALYSIS OF THE MARKET

Market is where the buyers and sellers interact. Market is one of the

variety of systems, procedures, social relations, and infrastructures whereby

parties engage in exchange. Markets rely on sellers offering their goods or

services in exchange of money from buyers. It can be said that the market is a

process by which the prices of goods and services established. Markets facilitate
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trades and enable the distribution and allocation of resources in a society, it also

allows any trade able item to be evaluated and price. Target markets are mostly

people who are looking for cheaper price for them to save money.

In the study the target market of the propose firm are those who want to

shop clothes easier wherein they can save more time and less fatigue no need to

go out and look for the dresses that will suit them. The proposed business

“Spotlight on Style” have a good management and services that the competitors

doesn’t have. The best organizational structure suitable to a new business

organization really depends on the customer’s satisfaction.

HISTORICAL DEMAND

It is essential to study the historical demand to clearly evaluate the market

for the proposed business. Historical demand is the actual number of clothes that

the Spotlight on Style Online Shop sold in the past years. Since the Online Shop

with Online Fashion Assistance service do not subsists yet in the market, the

pr\oponents determined first the historical demand of the service related to it. The

proposed business projected demand will be based on the historical demand of

related business. This portion is important because this will determine the

projected demand of the proposed service.

Table 2.1
Historical Demand
FREQUENCY PAST
OF ANNUAL
MARKET TARGET
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YEAR ACCEPTABILITY POPULATION AGREEMENT DEMAND

2012 76 144,334 81 88, 852

2013 76 148,309 81 91,299

2014 76 152,393 81 93,813

2015 76 156,590 81 96,397

2016 76 160,902 81 99,051

Past annual demand is computed by getting the target population for the

year 2012-2016 multiplied by market acceptability which is obtained by getting

the percentage of respondents who are willing to purchased the proposed product

which is 99% and multiplied to the frequency of agreement or the times the

customers avail the products annually 324. It increases annually based on the

annual growth of the population by 2.754%.

PROJECTED DEMAND

The historical demand for the product was used to obtained the future

demand for the product. Historical demands serve the pattern for forecasting.

The following table presents the expected demand for the products that

will be offered by the proposed business “ Spotlight on Style ”.

Table 2.2
Projected Demand

FREQUENCY
OF
YEAR MARKET TARGET AGREEMENT PROJECTED
POPULATION DEMAND
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ACCEPTABILITY

2017 76 165,333 81 101,778

2018 76 169,886 81 104,582

2019 76 174,565 81 107,462

2020 76 179,373 81 110,422

2021 76 184,313 81 113,463

The annual increased of demand for the years 2017-2021 is based on the

annual population growth rate from 2012-2016 by 2.754%. The annual projected

demand was obtained by multiplying the market acceptability which is 305 to the

target population and to the frequency of agreement.

SUPPLY

Supply refers to the schedule of the amounts of a good that will be offered

for sale at all possible prices at anyone instant time, or during anyone period of

time in which the conditions of supply remain constant ( Miranda, 2001 ). Supply

can relate to the amount available at a specific price or the amount available

across a range of prices if displayed on the graph. This relates closely to the

demand for good or service at a specific price; all else being equal, the supply

provided by producers will rise if the price rises because all firms look to

maximize profits ( Investopedia, 2011 ).

In this study, it is important to know the historical supply and the projected

supply because it directly affects the firm’s production planning and scheduling.
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This will be determined using the information collected from the retailer’s survey

questionnaire.

HISTORICAL SUPPLY

The historical supply of the product will be determine through the

information that will be obtain from the interviews and observation conducted to

the different retailers in Tanauan City.

Table 2.3
Historical Supply
PERCENTAGE FREQUENCY PAST
OF OF ANNUAL
TARGET
YEAR PURCHASES AGREEMENT SUPLPLY
POPULATION

2012 61 144,334 81 71,351

2013 61 148,309 81 73,279

2014 61 152,393 81 75,297

2015 61 156,590 81 77,371

2016 61 160,902 81 79,502

Past annual supply is computed by getting the target population for the

year 2012-2016 multiplied to the percentege of purchases which is 245 and to the
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frequency of agreement or the times the customers avail the products annually

324. It increases annually based on the annual growth of the population by

2.754%.

PROJECTED SUPPLY

Same as in projected demand, projected supply will also based on the

number of the product sold from the existing retail stores. Determining the

projected supply is necessary to come up with market share of the product. The

table below shows the projected supply of related products.

Table 2.4

Projected Supply

PERCENTAGE FREQUENCY
OF TARGET OF PROJECTED
YEAR
PURCHASES POPULATION AGREEMENT SUPPLY
2017 61 165,333 81 81,691

2018 61 169,886 81 83,941

2019 61 174,565 81 86,253

2020 61 179,373 81 88,628

2021 61 184,313 81 91,069

Projected supply was obtained by multiplying the percentage of purchases

which is 245 to the target population with 2.754% growth rate and the frequency

of agreement.
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DEMAND AND SUPPLY ANALYSIS

After the proponents had been identified the supply and demand of the

product in the target market, there is an observance of difference between the

demand and supply. The difference between the demand and supply for the

product is called “ market gap ” which is an important factor in determining the

feasibility of the proposed product. The difference between the two represents the

unsatisfied customers.

The table below shows the amount of market gap based on the projection

made.

Table 2.5

Demand and Supply Analysis

PROJECTED

DEMAND SUPPLY
YEAR MARKET GAP

2017 101,778 81,691 20,087

2018 104,582 83,941 20,641

2019 107,462 86,253 21,209

2020 110,422 88,628 21,794

2021 113,463 91,069 22,394

The table above shows the gap between the quantity demanded and quality

supplied. The gap represents the unsatisfied current market brought about by

different factors and is due to the high difference between the market acceptability

and the total amount of products purchased or percentage of product.

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MARGET GAP = PROJECTED DEMAND – PROJECTED SUPPLY

The same method was used in obtaining the market gap for the years

2012-2016.

BUSINESS LOCATION

Since the proposed business is an online shop, it does not require the

proponents to build a shop because they can work at home home. But the

proponents decided to rent a space located at F. Laurena St. Brgy. 1, Tanauan City

Batangas, this is for easy transaction with the customers and suppliers.

SWOT ANALYSIS

SWOT Analysis is a method to determine and enumerate the Strengths,

Weaknesses, Opportunities and Threats involve in the study. It involves

identifying the objectives that are meant to achieve by the business and to identify

the external and internal factors that will affect the flow of the business in

obtaining its objectives.

Strengths

The characteristic of the business shows its advantages to the other

competitors.
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Online Fashion Assistance. Spotlight on Style offers fashion assistance to

help customers choose a fashion wear base on their sense in fashion. Through

Skype or webcam, fashion assistance will help the customers by showing the

overall look of the chosen product when it was on the body.

Easy transactions. After the customers choose a certain product Spotlight

on Style assistant will personally deliver the product to the clients.

Product Price. Spotlight on Style ensure that every pieces of their product

are made from high quality material with a price that was so affordable.

The proponents believe that with the help of these strengths, the proposed

business will be feasible.

Weaknesses

Weaknesses is a factor which can resulted to failure if it is not treated. It is

a hindrance for the business to achieve its main goals.

New in the Industry. Though Spotlight on Style is new in fashion

industry, it will be a challenge to compete in other competitor that has make a

bigger name in fashion industry. It also limits the business capacity to have their

market. Acceptability and recognition of the public will take some time.

Numbers of Workers. The business has only 7 members, so it will really

hard for the distribution of work.

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Inadequate Knowledge. The newly established business has a limited

knowledge in managing a business. The partners may know some information in

supervising a business but still lack of experiences.

Opportunity

Social Networking. People nowadays choose an easier way of shopping

Spotlight on Style Online shop where people can buy a product without needing

to worry about gas or legs giving in from walking around the mall.

The proposed business offers a top quality product that will increase the

opportunity to recognize in fashion industry.

Threats

Existing Competitors. Knowing that there are so many different online

shop that is well known in fashion industry, it is very hard for the Spotlight on

Style to compete with them.

Service. An online shop that personally delivers a product was to satisfy

the customers. The Spotlight on Style online shop offers a top quality fashion

wear with online assistance to help the customers choose base on their fashion

sense. It is the idea of helping the customers to choose a certain product through

showing the overall look of the fashion wear when it was on the body.

SERVICE
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Spotlight on Style will offer an online shop with fashion assistance online.

It is the idea of showing to the customers the overall appearance of their chosen

product, if it will fit them or not. Together with the assurance that it will be

delivers to the customers personally.

BRAND NAME

Brand name is a name design that distinguish one seller’s product from

those of the others in the eyes of the customers. The brand name Spotlight on

Style was a chosen name from the proponents mixed ideas about fashion. The

proponents choose this one because of its uniqueness and because of assuring the

customers the satisfaction that they will get on purchasing the product proposed

that will fit to them on any occasions or gatherings.

USES OT THE SERVICE

The main purpose of the business is to provide the demand for fashion

wear in online shop with a high quality and offers an affordable price to the

customers within Batangas premises. This will also help the people that have no

enough time to go to the mall because of their hectic schedules, they can easily

contact Spotlight on Style and buy the specific product that they want, to bring

satisfaction and benefits to the customers.

USERS OF THE SERVICE

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The users of the propose business service have wide scope of target

market with different age, gender, & life status. It includes all customers who are

looking for good fashion that have a fast service that always bring satisfaction and

benefits for the users.

SERVICE FEATURE: LOGO

SOS.com
- Spotlight on Style-

“A STYLE in every STORY ”

Figure 2.1

Feature Logo

The logo itself has its own meaning according with the design. Based on

the logo design, the proponents put an image of a pure white shopping bag beside

the service name of the proposed business which is Spotlight on Style. Pure white

that mostly represents the passion and pure service benefits that the proposed

business will offer to the customers and the shopping bag as the full package of

the service.

TRADEMARK
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The market will be recognizing the business firm as the only fast delivery

fashion online with a discount of 1 item if you buy 5 items from us that the other

competitors doesn’t have. The proposed business will be recognize as the only

one Online Shop which will offer “Online Fashion Assistance ”.

SLOGAN

The ideal slogan for the proposed service of the business firm that the

proponents chose best fit for the study is “ A STYLE in every STORY “ that

specifically signifies for business nature of service . A Style for every fashion and

Story for a fast delivery service.

“A STYLE in every STORY ”

SERVICE BENEFITS

The Spotlight on Style online shop is offering a fashion assistance and

good quality of clothes and other accessories that will fit on the satisfaction of the

customers. Also, in every delivery of the chosen product there is always a story

wherein the delivery of the product will be on time and it will not take a week.

PRICING STRATEGY
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Price is the money value of a product which is expressed in terms of peso

and or centavo. It is also the amount of money needed in order to acquire a

product or service and its accompanying service (Llarena et. al. 2011)

It is necessary that the price of a certain product is reasonable and

affordable to increase the market share of the firm. Price is the major determinant

of the firm’s market share. The proponents viewed pricing as an important process

in the marketing aspect of the study.

Both external and internal factors should be taken into accounting

determining the price of the proposed product. The internal factors to be

considered are the cost of materials, cost of the labor and the overhead cost. The

external factors are the taxes that the firm should include in the selling price of the

product.

In addition, based on the results of the survey questionnaires most of the

respondents, agreed on availing the service and the product at the lower price. The

proponents will going to use the Penetration Pricing Strategy to pursues the

objective of quantity maximization by means of a low price resulting in expecting

the demand to be highly elastic that is customers are price sensitive and the

quantity demanded will increase significantly as price declines. In this study it

pertains to the price of every service being offered by the business by delivering a

good quality of clothes and fashion assistance for as low as ₱250.00 and up every

delivery within the locality of Tanauan City.

CHANNEL OF DISTRIBUTION
 31

When the firm wants to emphasize the place variable, it makes the

company available in the location and time required by the buyers. The channel of

distribution helps implement the firm’s concern about the place variable.

Channel of distribution is a set of institutions which participates in the

movement of goods and services from the point of production to the point of

consumption.

Figure 2.2

Channel of Distribution

The figure 2.2 shows the channel of distribution of “ Spotlight on Style

Shop ” from suppliers down to the firm then finally, to its customer. Spotlight on

Style Fashion assistance will be distribute to the customers through delivery or

direct orders all over the municipality.

PROMOTION STRATEGY

The researchers provide promotion strategies that will be using in

promoting and selling of Fashion wear.

 32

1. Flyers/Leaflets – in every target places, the company will provide a

product flyers for the promotion of the product.

2. Social Media / Internet Marketing – the company will be using social

media since that most of the people nowadays are technology oriented and

embracing social networking sites, it was easy for the proponents to

advertise in the internet through blogging.

3. Trade Fair – the proponents will join a trade fair for more attraction of the

proposed product. This will be done once in a year where the entrepreneur

can be able to meet many potential customers.

4. Word of Mouth – was supplemented strategy in informing the public about

the product.

GENERALIZATION

This part of the study tackles the business name, uses and users of the

service, the subject of the study, product service logo, channel of distribution and

the SWOT Analysis. This part of the study is important to determine the capacity

of the business to penetrate in the market

In this part of the study, the target market of the proposed business was

defined. Those target market are the household population on Tanauan City and

other nearest localities. The proper marketing strategies and techniques to be used

in introducing the business to the public are also discussed here.

 33

CHAPTER III

MANAGEMENT STUDY

Management is an essential factor in any organization, regardless of the

nature, size and scopes. It is the function of planning, organizing, and directing

the resources and activities in the enterprise for their attainment of its goals and

objectives. Any organization must be well managed for it to accomplish its

 34

objectives according to plans and budgets and to assure the effectiveness and

productivity of workers and to maximize the satisfaction of the customers towards

the business.

Management aspect is concerned in identifying the form of business

partnership that the proponents used to operate the business. The organizational

structure which illustrate the flow of the authority for the whole organization. The

duties and responsibilities of each employee, and the compensation and benefits

each is to receive. It is also concerned with organizational policies to be obeyed

by the highest to the highest employee and the legal requirements that any

enterprise must comply with. It also discusses the number of manpower needed

by the firm to start the operation. The job specification and job description

enumerates the qualification needed and the assigned work for each position.

The proposed business aim to make a commercial website of Spotlight on

Style online shop to gives people oppurtunity to know the business and services

that they offer. Specifically, this feasibility paper focuses its discussion to answer

the following question about Market Study, Management Study, Technical Study,

Socio-Economic Study, and Financial Study.

OBJECTIVES

1. To identify the persons involved in the management and their duties and

responsibilities.

2. To know who are the possible people in their qualifications in choosing

them.
 35

3. To determine what are the policies to be implemented in running the

business.

4. To determine what are the benefits and compensation scheme to make

the employees productive.

5. To determine the management feasibility of the project by identifying

the appropriate form of business organization in its compliance with the

legal requirements for the business operates.

PRE-OPERATING PERIOD

The proponents decided that before the propose business will operate, pre-

operating period has its vital role.

First, calculating the initial capital that the proponents must invest to start

up the enterprise, every business starts in capitalization. Second, identifying

where was the most accessible location to build up the enterprise, this is for easy

transaction to the customers and the suppliers. Third, identifying the supplies,

tools and equipment that is needed for the service operation and to run the

enterprise. Fourth, look for the qualified workers to be with during the enterprise,

what ages, gender and etc. The manpower is needed by the firm to start the

operation. Fifth, complying all documents and legal requirements for operation of

the business. Licenses and permits are mandatory, so before the proponents can

legally operate a business it is required that all the requirements are in place.

BUSINESS PERMITS & LICENSES

 36

Business permits regulate safety, structure and appearance of the business

community. They act as proof that your business follows certain laws and

ordinances. Requirements vary by jurisdiction and failure to comply often results

in fines or even having the business shutdown.

Business Licenses are permits issued by government agencies that allow

individuals or companies to conduct business within the government’s

geographical jurisdiction. It is the authorization to start a business issued by the

local government. Typically, a company’s business activity & physical location

determines which licenses are required to operate lawfully. License was the

owner’s action was accountable also to protect the public health and safety and

specially to keep track of your finances for tax purposes.

When you’re caught up in the excitement of starting a new business, it’s

easy to ignore the need for licenses and permits. However, licenses and permits

are mandatory, and before you can legally begin to operate the business, it is

needed that all the legal requirements are in place.

The proponents research first the permits needed before starting any work,

set-up or property purchase. That way the proponents can make sure that

compliance is in order and to avoid the additional expenses and delays of fixing

things later.

All the permits that the business firm comply will be posted inside the

business’ boutique at the opening day, for the customers to see that the business

firm are registered to all legal documents it needed.

 37

In this study it refers to Mayor’s Permit, Zoning Permit, Business Permit,

Fire Safety Permit, Sanitary Permit, Phil Health Application Form, SSS

Application Form and Electrical Permit.

PERSONS INVOLVED IN MANAGEMENT

The success of the business mainly depends on the manpower and

performance of the persons involved in the management. Human resource is one

of the most important aspects of the business enterprise, without this there will be

no existing operation.

In this study it relate to the legal form of business which is partnership that

has been chosen to best fit the business which includes equal control of the

business and any profits will split equally. Partnership agreement can protect

owners in the event of the death of one partner, a dispute, a sale to a new Partner

or the dissolution of business. Partnerships advantage includes easy to form,

subject to less government requirements, suited to the practice of a profession,

some are exempted from income tax, and flexibility of operation. Partners often

go into business together because they trust one another and enjoy working

together.

Specifically it refers to the owner of the proposed business that includes

the business operation supervisor and the service / production operation

supervisor and their duties and responsibilities. The partners agreed that both of

them are responsible for the decision-making for the enterprise. Margail Nueque

(Supervisor 1) will be the one in-charge in supervising the enterprise that will
 38

maintain the list of accounts of the business while, Kheylynn Pungtilan

(supervisor 2) will be responsible for the operation process monitoring which

includes the purchasing of materials needed and also for communicating to the

suppliers who will deal with the proposed business.

PROJECT SCHEDULE

Fashion assistants work fairly for a long hour as a retail business.

Spotlight on Style Online Shop is open 8:00am – 8:00pm for the advantage of the

customers who has a time limit of hour because of their working schedule.

Customer can easily order the certain product that they want anytime. As well as

the availability of the fashion assistance for the customer to fulfilled the service

offer.

All of the successful transaction received online will conveniently deliver

to the customer personally and in every 5 orders of the certain product, the

customer will have a discount in 1 item. Spotlight on Style staffs are used to work

for a long period of time. Therefore it will very capable for them to offer a fastest

service during holidays especially Christmas season.

The proposed business “ Spotlight on Style ” will operates 8:00am –

8:00pm. The company has also a policy that every staff will be having a rest day

depends in their work schedule. During the operation of the business, around

8:00am – 8:00pm. They have a 4 hours breakfast, lunch break and also for dinner

and midnight snack. The company will also allow them to have 1 hour and 30

minutes for coffee break. The project schedule shows the normal operation of the
 39

firm. SOS online shop can easily offer their business anytime and anywhere

because nowadays, online shopping is the people’s choice in terms of easy

transactions and very accessible to the public. So the company’s decision is to

make a 24/7 service offer that will surely like by the customer.

Although it is very tiring job for the staff, SOS will do their best just to

fulfill the satisfaction of the customer.

GANTT CHART

Table 3.1
Gantt Chart

Plan of Activities January- March- May- July- September

February April June August

Make Feasibility
Study for the
proposed business

Conduct a survey
and interview

Source Of Fund

Business Permit &

Licenses Registration
 40

To look for perfect

location

Purchasing supplies
and equipment

Hiring of Operation
Employee

Business Promotion
& Marketing

Business Operation

Table 3.1 shows the projected summary of plan of activities to be taken before the

operation of the proposed business and its time allocation.

During the period of January 2017 up to February 2017 the following Plan

of Activities will take place.

 Make Feasibility Study for the Propose Business

The first stage where the proponents conduct brainstorming and choose

the best business firm that will surely marketable to the public.

 Conduct a Survey & Interview

The second stage where the proponents will distribute a survey

questionnaire and conduct an interview on the target respondents in the barangays

of Tanauan City to make sure that the proposed business firm will be acceptable

to the market.
 41

 Source of Fund

The source of Fund will plays a most important role before the operation

of the proposed business. During the period of Jan-Feb 2017, the following plan

of activities will take place.

 Business Permit & Licenses Registration

The legality of the proposed business is required for the assistance of

customer.

 To Look for Perfect Location

The proposed business should have a perfect location for the business firm

to be accessible to the public.

 Purchasing Supplies & Equipment

Purchasing supplies and equipment must be utilized for the operation of

the business.

 Hiring of Operation Employee

Having the best employee on board can make the operation of the business

successful. Choosing the right employee that will best suit the position require is

an important factor to be considered

 42

 Business Promotion & Marketing

Promotion of the product is an important marketing function to know if

the proposed business has a position in the market and for the awareness of the

public.

 Business Operation

September 2017 will be the operation of the business after all the stages

done and ready to launch.

FORMS OF BUSINESS ORGANIZATION WITH ADVANTAGES

The form of business organization for this proposed business “ Spotlight

on Style ” will be Partnership. “By the contract of Partnership, two to four persons

bind themselves to contribute money, property, or industry to a common fund with

the intention of dividing the profits among themselves.” (Article 1767, New Civil

Code). Partnership is a voluntary association of two to four persons and this type

of business is easy to form. The partners complement each other. Guided by law

and codes of ethics, they are responsible, individually and collectively to their

clients and customers. The firm will be called “Spotlight on Style Online Shop”

which is derived from the idea of having a good fashion sense with the help of

social media where in the service includes online fashion assistance. The
 43

partnership composes of 3 partners namely: Margail Nueque, Kheylynn Pungtilan,

Hirish Fae Piedad.

Advantages of Partnership

 Easy and Inexpensive. Partnerships are generally an inexpensive and

easily formed business structure. The majority of time spent starting a

partnership often focuses on developing the partnership agreement.

 Shared Financial Commitment. In a partnership, each partner’s equally

invested in the success of the business. Partnerships have the advantage of

pooling resources to obtain capital. This could be beneficial in terms of

securing credit, or by simply doubling your seed money.

 Complementary Skills. A good partnership should reap the benefits of

being able to utilize the strength, resources and expertise of each partner.

 Partnership Incentives for Employees. Partnerships have an employment

advantage over other entities if they offer employees the opportunity to

become a partner.

ORGANIZATIONAL STRUCTURE

The organizational structure or organizational charts determine the social

structure and the coverage formation in the organization. It is a plan build to

distinguish the division of work and responsibilities inside the business enterprise.

This means that the partners will be having equal distribution of work. This kind

of structure was appropriate for small organizations and it will help the firm to
 44

make decisions

effectively and easily. Different

rules and resources drawn upon and enacted by people make up an organization.

Margail Nueque Kheylynn Pungtilan

Supervisor 1 Supervisor 2
Business Operator Production Operator

Hirish Fae Piedad

Manager
Production Operator

? ? ? ?
 45

Worker Worker Worker Worker

Figure 3.8
Organizational Structure
The partners agreed that both of them are responsible for the decision-

making for the enterprise. One of them will be the one in-charge in supervising

the enterprise that will maintain the list of accounts of the business while, the

other one will be responsible for the operation process monitoring which includes

the purchasing of materials needed and also for communicating to the suppliers

who will deal with the proposed business.

MAN POWER REQUIREMENTS

The success of the business mainly depends on the manpower and

performance of the persons involved in the management. Human resource is one

of the most important aspects of the business enterprise, without this there will be

no existing operation.

Human resources are very important in any kind of business structures.

They are the one who do the service operation. The human resource that the

proponents was looking for are those computer who are literate since the business

proposed was about online shopping. Also, those who are willing to be choose as

the models of the product that the customers will choose.

 46

Selecting the right employees that will best suit the position require is an

important factor to be consider. Placing the competitive personnel in suitable

position based on their skills and abilities is the key to be able to maximize the

production and operation.

Table 3.2

Manpower Requirements

Workers No. of Workers

Supervisor 2
Manager 1
Workers 4
JOB TITLE

Job title speaks to certain abilities and typical tasks based on training and

experience, it also speaks to the level of the job within the organization and

determine pay grade. In the study it refers to the Manager, Production worker and

other people involved in the firm.

JOB DESCRIPTION

Job description sets the duties and responsibilities of to be fulfilled by the

person who will fill in the job. It is based on objective information obtain through

job analysis, an understanding of the competencies and skills required to

accomplish needed tasks, and the needs of the organization to produce work.

Operation Worker

 Check operation schedule to determine variety and quantity of materials to

be needed.
 47

 In charge of the operation process.

 Ensures that the operation and service is f quality.
 Informs the bookkeeper or the manager about the problem regarding in

operation.
 Doing work in accordance with the firm’s policies and guidelines.

Supervisor

 Must be capable of making sound decisions and have good administrative

and public relation skills.

 In-charge for the management supervision and the overall control of the

business operation.
 Create marketing and promotional strategies for product awareness.
 Handle cash transaction.
 Lead employees to meet the organization’s expectation for productivity,

quality and goal accomplishment.

 Consciously create a workplace culture that is consistent with the overall

organizations and that emphasizes the identified vision and mission.

JOB SPECIFICATION

The determination of manpower needs and the discovery of persons to fill

in those needs are some of the few essential functions of stuffing that the partners

needs to decide. A job specification is a statement of employee characteristics and

qualifications needed to comprise a specific job.

Operation Worker
 48

 Preferably with one year of experience in the same field.

 At least high school graduate.
 Must have a good moral character.
 Hardworking, honest and punctual.
 Must be physically fit for the job.
 Can work with less supervision.

Employees / Staff

 Good interpersonal skills, good at dialing with the public.

 Good time management skills.
 Have the ability to work quickly and efficiently while under pressure.

Supervisor

 A graduate of any business related course.

 Knowledgeable in handling business transactions.
 Has background in Accounting.
 Must possess good communication skills in handling transaction.
 Has good motivation in the enhancement and development of the

production.
 Highly develop, developed teamwork skills.

BUSINESS POLICIES

Policies are described as a plan of action to obtain goals and objectives of

the company, typically instituted in order to avoid some negative effect that has

been noticed in the organization, or to seek some positive benefit on it. Proper and

effective implementation will be designed and should be followed by all members

of the organization.

The components of the organization’s protocol are rules and regulations

term and conditions, basic principles and policies which act as yards stick’s be
 49

followed or complied with reasonable diligence. But nothing in the provision of

policies would invalidate whatever has been agreed in a contract should there be a

conflicting issue left unsolved.

Those business policies were as follows:

1. There should be an appropriate behavior shown in the workplace.

2. Fully respect the employee’s condition including their illness.
3. Any information about the organization will be treated confidential.
4. Employees are treated equally and promote fair treatment in the

workplace.
5. Ensuring that the employee’s compensation and benefits are properly

given in accordance to the effort they rendered.

6. Employees are necessary do the task of co-employee if in case the said

person cannot perform due to sudden emergency.

7. Employees are ensured that they can place an environment on which their

skills are given importance and in which there’s a chance of life

improvement.
8. Employees are entitled for one (1) day off duty or rest day for their family

commitment.

WORKING HOURS & CONDITION

Spotlight on Style is usually open 24 hours. Our shop is always accepting

customers anytime to choose and reserve a beautiful fashion wear that they want.

All transactions received the store hour will be delivered and have time for each

delivery for the smooth flow of the operation. The customers are always welcome
 50

in our shop or in the online shop and we can arrange service to be sold per day. Be

expected around busy periods such as Christmas and summer vacation.

Table 3.3
Working Days & Hours

Workers MON TUE WED THU FRI SAT SUN

Business 12 12 12 12 12 12 Off
Operation Hours Hours Hours Hours Hours Hours Duty
Supervisor 1
(8am- (8am- (8am- (8am- (8am- (8am-
8pm) 8pm) 8pm) 8pm) 8pm) 8pm)

Production 12 12 12 12 12 12 Off
Operation Hours Hours Hours Hours Hours Hours Duty
Supervisor 2
(8am- (8am- (8am- (8am- (8am- (8am-
8pm) 8pm) 8pm) 8pm) 8pm) 8pm)

Production 12 12 12 12 12 12 Off
Operation Hours Hours Hours Hours Hours Hours Duty
Manager
(8am- (8am- (8am- (8am- (8am- (8am-
8pm) 8pm) 8pm) 8pm) 8pm) 8pm)

Production 12 12 12 12 12 12 Off
Operation Hours Hours Hours Hours Hours Hours Duty
Worker
(8am- (8am- (8am- (8am- (8am- (8am-
8pm) 8pm) 8pm) 8pm) 8pm) 8pm)

SALARY

Salary is refers to money given as a payment for a job done. Money is the

most important for the job satisfaction. It represents buying power. Money is the

number one factor in job satisfaction. In addition it is a form of periodic payment

from an employer to an employee where each job, hour or other unit is paid

separately rather than on a periodic basis.

 51

BENEFITS & INCENTIVES

Employee benefits include various types of non-wage compensation

include providing them their own SSS, Phil Health, PAG-IBIG Fund and

Thirteenth Month Pay as an additional to their normal wages or salaries.

The purpose of employee benefits is to increase salaries and in doing so,

improves worker retention across the organization. According to some

observation, workers have so much eagerness to do their work properly because

of the extra payments to be given.

Furthermore, an incentive is a desired action that spurs an employee to do

more of whatever was encouraged by the organization. The proposed business

will use incentives to promote a particular behavior or performance that they

believe is necessary for the organizational firm.

The firm agreed to provide the following benefits in order to protect

employee’s income from illness, disability, unemployment, or retirement and the

following which are as follows:

1. SSS (Social Security System) – under R.A. No. 1161, employers should

render assistance to employees and their families in case the sources of the

income is terminated, reduced or interrupted because of sickness,

disability, death or old age. SSS grants retirement benefits, maternity,

disability, sickness, and the funeral housing, productions and salary loans

to all members.
 52

2. Phil Health Program – being a SSS member, an employee is automatically

covered by Phil Health. The premiums of which are shared by the

employer and the employee. It covers hospitalization, surgical and medical

benefits and it also shoulders a portion of hospital expenses.

3. PAG-IBIG Fund Benefit – it is a housing and provident fund where

employees may avail a multi-purpose or housing loan.

4. Thirteenth month Pay – it is legally required benefit which was designed

to give additional compensation to employee during holiday season.

TARDINESS & ABSENTEEISM

Tardiness according to Evangelista et.al (2005) may causes by accidental

factors or unavoidable circumstances like traffic jam accident, minor physical

disturbances. Most often it may be due to indifferences in management leadership

laxity in enforcing rules, or lack of interest by the employee in his job.

Absenteeism is a habitual pattern of absence from a duty obligation.

Traditionally, absenteeism has been viewed as an indicator of poor individual

performance as well as a breach of an implicit contract between employee and

employer.

In this study, both tardiness and absenteeism considered as a management

problem that can cause to poor and inefficient business operation.

CODE OF CONDUCT
 53

Code of Conduct is a set of rules outlining the social norms and rules and

responsibilities of a proper practice for an individual, party or organization.

According to the 2007 International Good Practice Guidance, “Defining

and Developing on Effective Code of Conduct for organizations”. The

International Federation of Accountants sates that, “ Principles, values standard or

rules of behavior that guide the decisions, procedures and systems of an

organizations in a way that (a) contributes to the welfare of its stakeholders and

(b) respects the rights of all constituents affected by its operation (Wikipedia).

Furthermore, a common code of conduct is written for employers of a

company which protects the business and informs the employees of a company’s

expectations. It is ideal for even the smallest of companies form a documents

containing important information on expectations for employees. The document

does not need to be complex or have elaborate policies but the file needs simple

basis of what the company expects from each employee.

Committing any of the following infraction will be sufficient for

disciplinary action ranging from warning to instant dismissal depending upon the

seriousness of the offense in the judging of the management.

1. Willful refusal of an employee to carry out any reasonable order or

instruction given by his superior or to perform the work designated to

him.

2. Intentional destruction, alteration, abuse or waste of the enterprise’s

property, facilities, records or equipment.

 54

3. Displaying bad manners such as the use of abusive or insulting language

or willful contempt of authority.

4. Habitual tardiness of frequent absences from work without reasonable

causes.

5. Sleeping or loitering while on duty.

REGULAR HOLIDAYS

A holiday is a day set aside by custom or by law on which normal

activities, especially business or work, are suspended or reduced. The degree to

which normal activities are reduced by the holiday may depend on local laws,

custom, the type of job being held or even personal choices.

Republic Act No. 9492 was based on the so called principles of holiday

economic and was intended to boost the economy for more opportunities pursuant

to the provision of the Labor Code, as amended in relation to the observance of

declared holidays either as regular holiday, a special day or a special working

holiday, there are certain guidelines that shall be observed by all employers in the

private sector. In this study the service days and hours that the workers will be

rendered during holidays will be paid compensatory.

The following are the list of legal holidays:

Table 3.4

Regular Holidays
 55

January 1 New Year’s Day

April 9 Day of Valor (Araw ng Kagitingan)

April 13 Maundy Thursday

April 14 Good Friday

May 1 Labor Day

June 12 Independence Day

August 21 Ninoy Aquino Day

August 25 National Heroes Day

November 1 All Saints Day

November 30 Bonifacio Day

December 25 Christmas Day

December 30 Rizal Day

COMPENSATION SCHEME

Compensation refers to reward given in monetary terms and may vary

depending on the rate provided by other business establishment or industry

average, by the firm’s financial status and performance and compliance with the

regulations implemented by the government ( Sison, 2000 ).

Any business establishment must have a just compensation regarding the

nature of the job of employees in order to encourage them to do their jobs and

responsibilities efficiently in connection with, the supervisor should receive

 56

₱300.00 daily while the worker should receive ₱260.00 daily wage rate as per

agreement of both parties. The supervisor will receive a monthly salary of ₱7,800

while employees will receive ₱6,780. The workers compensation will be given

every 15th and 30th of the month. All employees will receive 13th month pay.

Table 3.5
Compensation

Position Monthly Annually

Supervisor 1 ₱7,800 ₱101,400

Supervisor 2 ₱7,800 ₱101,400

Manager ₱7,280 ₱94,640

Operation Worker ₱6,780 ₱88,140

PROBLEM & SOLUTION

In the operation of any business firm there are always some uncertainties

that might encounter. Table 3.4 shows some of the problems during operation and

its designated solutions for the betterment and effective offering of service.

Table 3.5
Problem & Solution

Operation Related Problems Solutions

 57

Training and orientation regarding all

aspect of the operation will be

Limited Numbers of Worker
conducted for the familiarization of each

employee in all sections of operation.

Always remember that customer is

always right that’s why listen to the

Customers Complaint
customer, address all their complaint,

giving them attention and their demand

to obtain their trust and patronage.

Giving them sanctions depending to the

weight of their offense and remind them

Tardiness and Absenteeism of
the importance of abiding the business
Employees
policies and guidelines.

GENERALIZATION

Before the firm operates, it must first identify the form of business

ownership. The proponents decided to establish a partnership to the firm named

“Spotlight on Style Online Shop”. The initial capital needed for the business has a

total amount of Php 300,000 wherein each partner will has a contribution of Php

150,000. The initial capital will be used to cover up the financial need of the

business.
 58

CHAPTER IV

TECHNICAL STUDY

Technical study is a security analysis and methodology for forecasting the

direction of prices through the study of past market data, primarily price and

volume. This chapter will provide information about the product itself and the

raw materials, equipment and machineries to be used for working operation as

well as their resources, also it will evaluate securities and attempt to forecast the

business future movement by analyzing statistics gathered from trading activity,

such as price movement and volume.

OBJECTIVE OF THE STUDY

In the connection of the technical study, the proponents desire to fulfill the

following objectives:
 59

1. To deliver high quality product and service at lowest possible price

2. To design the operation process and operation schedule of “ Spotlight

on Style Online Shop ”

3. To identify the tools and equipment needed as well as the furniture’s

and fixtures that can be utilize by the propose business

4. To establish a strategic business location and lay out for the business

enterprise
5. To determine the sanitation process, labor requirement and safety

consideration that can be used and be implemented by the propose

business enterprise.

TECHNICAL REQUIREMENTS

Technical requirement pertains to the technical aspects that the proponents

must fulfill, such as the following: organizational chart and its process, facilities,

fixtures, utilities, supplies, and tools.

 60

BUILDING AND FACILITIES

The location of the proposed business “Spotlight on Style” will be in

Riverside Mansion commercial building ground floor along F. Laurena St.

Barangay 1, Tanauan City, Batangas. The Riverside Mansion is a 2-storey

building. The proponents choose the commercial area for the location of the booth

because of its huge crowd that can be prospected customers and buyers.

THE SERVICE

“ Spotlight on Style ” will offer extra service which is the online fashion

assistance. It is an idea of helping the customers to choose the best attire that will
 61

fit to them by showing them the overall look of their desire product when it is in

the body via Skype or webcam. It is needed by the customers who wants a good

appearance of themselves and help them in having a good fashion sense in

affordable price.

PROPERTIES

Spotlight on Style with the idea of online fashion assistance in the locality

of Tanauan City and other nearest Barangay’s, do not subsist yet in the market. It

is a unique way in which the employee will be communicate to the customers

through video for the customers to see the product itself that they had choose is fit

to them or not.

USES

The main purpose of the business is to provide the demand for innovative

online fashion services at prices that are affordable for the customers within

Tanauan City premises. This will also provide the need of those people wish to

have the best fashion attire.

PACKAGING

Packaging is a process of product planning wherein the company

researches, designs, produces its packages. It is the activity of designing and

producing the container or wrapper for a product ( Abrenica et.al 2015 )

In this matter, the proponents choose to have an image of a white bag

beside the name of the proponents proposed business which is the “ Spotlight on
 62

Style ”. The white bag signifies the passion and pure service benefits that the

proposed business “ Spotlight on Style ” will offer to the customers and the

shopping bag as the full package of the service. The proponents decided to pack

the purchase product in a white paper bag with a printed label with its brand

name, email address of the company, contact numbers and address in the front of

packaging.

SOS.com
-Spotlight on Style-

“A STYLE in every STORY ”

Email: spotlightonstyle@yahoo.comContact nos. 0948-802-4112

Located at F. Laurena, Brgy. 1 Tanauan City, Batangas

0930-491-9302

Figure 4.1
Packaging Logo
 63

Preparation and inspection of

materials and equipment Setting up of materials

(Inventory) and equipment needed

8:00 – 8:20 8:20 – 8:40

Reviewing of delivery

Logbook

Purchase order of materials needed

8:40 – 9:00

Spotlight on Style Store

Working Operation

9:00 – 11:30

Legends:

Operation Inspection Connector

 64

Figure 4.2

“ Operation Flow Chart of Spotlight on Style ”

Table 4.1

TIME AND MOTION SCHEDULE

ENDING
TIME TASK ASSIGNMENT
DURATION TIME
8:00 Preparation and inspection of 20 mins. 8:20
tools and equipment
(beginning inventory)
8:20 Setting up of materials and 20 mins 8:40
equipment needed
8:40 Reviewing of delivery logbook 20 mins 9:00
Purchase order of materials
needed
9:00 Spotlight on Style Store working 2 hours and 11:30
operation
30 mins.
11:30 LUNCH BREAK 1 hour 12:30
12:30 Spotlight on Style Store working 4 hours and 5:00
operation (Resume)
30 mins.
5:00 COFFEE BREAK 15 mins. 5:15
5:15 Spotlight on Style Store working 1 hour and 55 7:10
operation (Closing Hours)
mins.
7:10 Ending Inventory 20 mins 7:30
7:30 Cleaning of materials and 30 mins. 8:00
equipment used

OPERATION TOOLS AND SUPPLIES/MATERIALS

 65

The supplies and tools were used in the annual operation of the firm and

for the supporting the transaction of the business.

SERVICE FURNITURES & FIXTURES

Furniture and fixtures are larger items of movable equipment that are used

to furnish an office. It is very well use to have an organized working place. Listed

below are the furniture and fixtures needed in the process of Spotlight on Style

Online Shop operation.

Table 4.2

Service Furniture

(Annual)

ITEM QUANTITY UNIT COST TOTAL

3 pcs. 244.00 732.00

Service Chair
Office Table

5 pcs. 1,200.00 6,000.00

The Table 4.2 shows the list and the cost of service furniture used in the

operation area of the proposed business Spotlight on Style Online Shop. All prices

listed were determined through a price canvassing done in Home Plus (Waltermart

Tanauan). The amount of Php 7,000 was allotted for the service furniture.
 66

OFFICE SUPPLIES

The supplies are needed for the worker to work efficiently and effectively.

The supplies that the business needs are shown in Table 4.3.

Table 4.3

Office Supplies

(Annual)

ITEM QUANTITY UNIT COST TOTAL

Ballpen

24 pcs. 5.00 120.00

Envelope

30 pcs. 4.00 120.00

Coupon Bond-Short

2 reams 241.00 482.00

Coupon Bond-Long

1 ream 194.00 194.00

Folder-Short

20 pcs. 6.00 120.00

Folder-Long

15 pcs. 7.00 105.00

12 pcs. 7.00 84.00

Pencil
 67

1 pc. 5.00 5.00

Eraser

1 box 49.00 49.00

Fastener

48 pcs. 8.00 384.00

Daily Timecard

6 pcs. 10.25 61.50

Scotch Tape

5 pcs. 37.75 188.75

Record Book

1 pc. 351.75 351.75

White Board

2 pc. 13.25 26.50

White Board Eraser

White Board Marker

6 pcs. 20.00 120.00

 68

Pentel Pen

12 pcs. 19.00 228.00

1 pc. 5.00 5.00

Ruler

8 pcs. 24.50 196.00

Columnar Book

1 pc. 199.00 199.00

Wall Clock

1 box 17.00 17.00

Paper Clip

12 pcs. 300.00 3,600.00

Employee Uniform

The Table 4.3 show the list and cost of office supplies needed in the

operation of the proposed business Spotlight on Style. All prices listed were

determined through price canvassing in National Bookstore. A total amount of

Php 7,000 was used in buying the office supplies needed for the operation.

OFFICE TOOLS
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The office tools needed for the operation of the proposed business

Spotlight on Style are shown below.

Table 4.4

Office Tools

(Annual)

ITEM QUANTITY UNIT COST TOTAL

1 pc. 42.75 42.75

Stapler

2 pcs. 130.00 260.00

Calculator

2 pcs. 120.00 240.00

Tape Dispenser

2 pcs. 22.00 44.00

Scissors

1 pc. 75.00 75.00

Puncher
 70

The Table 4.4 show the list of office tools needed in the operation of

Spotlight on Style. All prices listed were determined through price canvassing in

National Bookstore with total amount of Php 700.00 was consumed in buying

office tools needed for the operation.

OFFICE EQUIPMENT

The following are the equipment that is needed by the office.

Table 4.5

Office Equipment

ITEM QUANTITY UNIT COST TOTAL

2 pcs. 950.00 1,900.00

Wall Fan

Table 4.5 show the list and cost of office equipment needed in the

operation of Spotlight on Style. Price listed was determined through price

canvassing in Jayson Marketing. A total amount of Php 1,900 was used in buying

office equipment needed for the operation.

DIRECT MATERIALS

Direct materials are the integral part of the finished product that can be

measured and charge directly as parts of its cost. The total cost of materials is

computed for 1 year consumption.

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MISCELLANEOUS SUPPLIES

The miscellaneous supplies needed for the operation of the proposed

business are shown below.

Table 4.6

Miscellaneous Supplies

(Annual)

ITEM QUANTITY UNIT COST TOTAL

2 pcs. 78.00 156.00

Trash can

2 pcs. 49.50 99.00

Dust Pan

3 pcs. 50.00 150.00

Soft Broom

2 pcs. 165.00 330.00

Floor Map

48 packs 13.00 624.00

 72

Table 4.6 show the list and cost of miscellaneous supplies needed in the

operation of Spotlight on Style. Price listed was determined through price

canvassing in Tanauan public market. A total amount of Php 2,000 was used in

buying miscellaneous supplies needed for the operation.

OPERATION EQUIPMENT & UTILITY

The equipment and utility were used in the annual operation of the firm

and for supporting the transaction of the business.

Operation equipment and utility are needed to aid the operation of

Spotlight on Style Online Shop. The following are the equipment and utility

needed in operation process.

Table 4.7

Operation Equipment and Utility

(Annual)

ITEM QUANTITY UNIT COST TOTAL

Computer

5 pcs. 35,000 175,000

Delivery Motor

1 pc. 69,900 69,900

 73

Table 4.7 show the list and cost of equipment and utility needed in the

operation of Spotlight on Style. Price listed was determined through price

canvassing. A total amount of Php 250,000 was used in buying miscellaneous

supplies needed for the operation.

BUSINESS SITE

The plant lay-out on the business site shows how each department is

divided so as to provide the worker, the supervisors, manager, as well as the

customers for a good ambiance. In this study, it refers to the spaces on the booth

for the operation, receiving and the waiting area of the building will considered

where the transaction between the suppliers, supervisors and customers would be

done and working area were the operation takes place are the main divisions of

the plant. The firm would just rent for Php 10,000 monthly and decide including

the water and electricity expenses.

- Location

Figure 4.1
Business Site
 74

Table 3 Table 4
Storage
Table 2 Table 1
Area

C.R

Manager’s
Room File / Work
Reception
Room
Area

Figure 4.2

Building Layout

UTILITIES

In order to have an organize facility and for the business to have a good

image in their customers. The establishment must have the electric supply,
 75

constant fresh water and also internet connection for the operation of the business

firm to attract the customers.

The supply of the electricity for the Spotlight on Style Boutique will be

coming from the existing supplier electricity in the town of Tanauan City,

Batangas, which is the Batangas Electric Cooperative. While the Tanauan Water

District is the one who will be in-charge in supplying the water. On the other

hand, PLDT Telecommunication will be the business firm source of internet

connection.

ELECTRICITY

The electricity is the primary needed in operating a business. It is very

essential for ventilation, lightning of the whole facility and for the computer and

other gadgets that is needed for the business transaction.

WATER

The business firm will be located in Tanauan City so that the water supply

will be coming from the existing water supplier in the town which is the Tanauan

Water District.

INTERNET CONNECTION

Since the business location is in Tanauan City and the PLDT

Telecommunication is known for providing a strong signal of internet connection

 76

on the town, the business choose this internet provider for them to have a

successful transaction with their customers through social networking.

WASTE MANAGEMENT

One of the social responsibilities of a firm is to take care of its

environment. Waste is always a part of every production process and it is

necessary to dispose these wastes properly. Proper waste disposal is a must in

order to protect the environment from hazardous elements. Waste segregation will

also be implemented to minimize waste. The proponents decided to use this

management to maintain the cleanliness of the firm as well as for environment

consideration.

WASTE FROM THE OPERATION

WASTE SEGREGATION FROM BIODEGRADABLE AND

NON-BIODEGRADABLE

TANAUAN WASTE MANAGEMENT COLLECTOR

Figure 4.4

Waste Management Process

SAFETY CONSIDERATION

These are the list of some safety precaution that the business gives highly

consideration.
 77

 The need to keep distances for receiving materials and supplies from the

plant during delivery is highly considered to reduce costs and risks;

 The geographical location of the site;

 Interaction with existing or planned facilities on site such as existing

roadways, drainage, and utilities routing;

 The need for plant operability and maintainability;

 The need to provide access for emergency services;

 Assurance that the information (address, contact no.) of the buyers will

kept confidentially.
GENERALIZATION
The chapter presents the different procedures needed in the operation of

the proposed business “ Spotlight on Style ”. The enterprise will hire four workers

for the operation of Spotlight on Style. Proper tools, supplies and equipment are

considered by the business. The materials needed in the operation were also

discussed in this study. The business site will be in Riverside Mansion

commercial building along F. Laurena, Brgy.1 Tanauan City, Batanagas.

CHAPTER VI

SOCIO-ECONOMIC CONTRIBUTION
 78

This aspect of the study serves as a guide in determining the socio-

economic contribution of the proposed business which is the “Spotlight on Style”.

This tackles the social, economic and environmental implication of the business.

OBJECTIVES

The business has the following objectives:

1. To determine the social implication and economic implication of the

proposed business
2. To determine the environmental implication of the business
3. To know the contribution of the business to the society
4. To prove that the business will provide benefits to people
5. To know the benefits of the proposed business to the customers

SOCIAL IMPLICATION

Social implication refers to those actions of business that have an impact

to the society as a whole. The firm will serve the people in order to help the

general welfare of the community.

The proposed business “Spotlight on Style” will bring satisfaction to the

customers who are looking for unique service or unique online shopping

experience. The business enterprise will not only offers a service to the customers

but also gives employment to the residence of Tanauan City an other nearest

localities. Generating employment means more income to people and to the

government as well. The business will also contribute to the improvement of

paying taxes to the government.

ECONOMIC IMPLICATION
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The proposed business “Spotlight on Style” will be beneficial to the

economy through providing a job to the people around Tanauan City and other

localities. This will provide income for living to the employee who will hired, this

will be beneficial to their families as well. This business will support local

workers as well as professionals and alleviate the need for local employment. The

business will also contribute to the competition which will lower the price of the

service but will maintain the quality of it.

The business enterprise will pay tax liabilities mandated by the

law. Tax will help the government generate funds for the improvement of public

service and government project that will give rise to the company.

ENVIRONMENTAL IMPLICATION

The firm will follow green initiatives to reduce damage to the

environment. The proposed business “Spotlight on Style” will follow proper

waste disposal to make sure that the business operation will not cause health

problems and will not cause hazard to the environment.

Proper waste segregation will be practice inside the operation to be

suitable for reuse or recycling. Minimizing the environmental impact of onlinr

shop service would not be challenging but still the enterprise will work hard to

improve the environmental performance to reduce not only the operational cost

but also to bad impact of the operation to the environment.

GENERALIZATION
 80

The proposed business will not be only beneficial to the owners but also to

the society, economy and the environment as a whole.

To the society, by satisfying the customers through the use of unique

service that it will offer which is the Online Fashion Assistance. To the economy,

by providing a job to the people residing in Tanauan City and other nearest

localities for them to have income for living. And to the environment as well, by

following the green initiatives to reduce damage to mother nature.

CHAPTER VII

SUMMARY, CONCLUSION AND RECOMMENDATION

SUMMARY OF THE STUDY

This chapter contains the name of the firm, location, brief description of

the project and highlight of major assumptions and summary findings regarding

market and technical aspect. The feasibility study is conducted for the possible of
 81

operating, selling and determining the viability of the proposed business

“Spotlight on Style” an online shop with fashion assistance, the product will

produce by a big company in a different country that gives a high quality and

branded product. The study covered the market, technical, financial, management

and socio-economic contribution of the proposed product. The purpose of this

feasibility study is used to determine if the proposed business venture will have

potential to be successful in the future. The project is proposed by Margail

Nueque, Kheylynn Pungtilan, Hirish Fae Piedad, Graciela Pacia, Jessa Manalo,

Joshua Orzo and Abygail De Guzman.

Name of the Firm

The proposed business will be known a “ Spotlight on Style ” a firm that

proposed online shopping and includes fashion assistance online. The proponents

came up with this business name because of the idea of having a good fashion

sense with the help of social media wherein the business includes an online

fashion assistance to help the customer choose the best attire that will fit to them.

The proponents use “ Spotlight on Style ” because they believe that a unique

fashion ‘ Style ’ should always be the focus of the spotlight.

Services Offer

“ Spotlight on Style ” online shop that includes fashion assistance is a

business that offers product as well as services to the customers. The “ Spotlight

on Style ” should be known to the public as an online shop that provides the latest
 82

and newest styles on the country and as the only delivery fashion online that gives

discount to their customers.

Location

The location of the proposed business “ Spotlight on Style ” is chosen

based on its accessibility to its target market and to the suppliers. “ Spotlight on

Style ” boutique will be located at F. Laurena St. Brgy. 1 Tanauan City, Batangas,

a location that is near in the different school such as the La Consolacio College,

Lilyrose School and also to the church of Saint John the Evangelist where its

target market is located. This location will be rented by the proponents for Php

10,000 a month.

Brief Description of the Product and Services Offer

“ Spotlight on Style ” online shop that includes fashion assistance is a

business that offers product as well as services to the customers. The “ Spotlight

on Style ” should be known to the public as an online shop that provides the latest

and newest styles on the country and as the only fast delivery fashion online that

gives discount to their customers.

Project Summary

The study is finished to acknowledge if the business is feasible to be

proceed. This will be determined by the use of market, technical, financial,

management and even in socio-economic feasibility. Feasibility Study is made to

know the possibility of the business to be productive.

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Market Feasibility

“ Spotlight on Style ” is an online shopping business includes fashion

assistance online. The rationale of the proposed business is to produce an online

shopping with fast delivery services. Also this part of the study measures the

potential of the product to be sold in the online shopping. It is necessary to set the

price of new products lower that the prevailing competitor in the online shopping.

As a promotional strategy, the proponents will advertise their product by

hjaving different marketing strategy such as word of mouth, online advertising,

and fliers to make the product known to the public. By doing so, consumer will be

aware of fashion online shopping with fast delivery and would also invite others

to buy the product.

Technical Aspect

Technical aspect were considered and carefully analyzed to test the

availability and capacity of the business. The proponent named their business

“Spotlight on Style”. The major product is the latest and newest style as well as

the business operation through the use of internet.

It explains the totality of the product of the firm. It details the product

process of the product. A project schedule is prepared to identify the daily,

monthly, and annual production capacity of the plan. The production will increase
 84

based on the implation rate. The materials, labors, and other necessities for

manufacturing and selling of the product and their costs were computed as well.

The plants location, size and lay-out are designed to meet the target result of the

proponents. The location as mention earlier would be located at F. Laurena St.

Brgy. 1 Tanauan City Batangas. The proponents will make small improvements in

chosen location.

Managemennt Aspect

The study show the operations of overall business management through

aspect of planning, organizing, directing and controlling. The study answers the

management of the business before and during the operations. This study includes

the business operation to form, the function of each personnel and the

organizational structure, the skills and the number of labors required in specifying

the duties and the amount of time to be devoted to the qualifications, project and

benefits.

The duties and responsibilities of the general manager who are partners

are also enumerated. In order to have a good working condition, and a good

quality product policies are set, fees and licenses.

Socio-Economic Aspect

The contribution of the proposed business “ Spotlight on Style ” are shows

to employees, community and economy. “ Spotlight on Style ” shopping online is

formed not only for profit generation but also for the socio-economic firm that

involves in practicing social responsibility. It has outmost contribution to local

 85

and national economy in the form VAT payable and tax deductions to interest

income. The firm gives importance to environment and all its stakeholders and

considerate in hiring challenged workers that meet the set standards.

Financial Aspect

In this part of study shows the financial performance and position of the

firm. Financial statement are presented here for analysis. In this study the total

project cost for three months is determine to identify the amount needed. The

study will ascertain if the returned will exceed all the cost incured by the firm.

Also the study will test the liquidity and probability of the firm.

CONCLUSION

The proponents are able to conclude the following conclusions based on

the summary above. The proponents therefore conclude that the proposed

business is feasible to be pursued. This will be determined by the use of market,

technical, financial, management and even in socio-economic feasibility study.

Project feasibility study is made to know the potential of a business to be

profitable.

RECOMMENDATION

After bearing in mind the substancial factors in the study that the

proponents accompanied such factors like the marketing, financial, technical, and

management and socio-economic study. It is therefore recommended that “

 86

Spotlight on Style ” will be pursued and the business establishes at F. Laurena

Brgy. 1 Tanauan City, Batangas.

APPENDIX

SPOTLIGHT ON STYLE ONLINE SHOP

RESULTS IN CONSUMER SURVEY

1. Did you even try to shop online?

CATEGORY NUMBER OF PERCENTAGE

RESPONDENTS
YES 245 61.25%
NO 155 38.75%

2. How much do you usually prefer in buying fashion wear?

CATEGORY NUMBER OF PERCENTAGE

RESPONDENTS

₱200-₱500 220 55%

₱600-1000 98 24.5%

₱1100 & UP 82 26.5%

 87

3. In shopping, what do you prefer most?

CATEGORY NUMBER OF PERCENTAGE

RESPONDENTS

ONLINE SHOPPING 105 26.25%

TRADITIONAL 295 73.75%

SHOPPING

4. How many times do you buy clothes within a month?

CATEGORY NUMBER OF PERCENTAGE

RESPONDENTS

2-3 TIMES 324 81%

4-5 TIMES 53 13.25%

OTHER 23 5.75%

5. What kind of clothes do you usually shop?

CATEGORY NUMBER OF PERCENTAGE

RESPONDENTS

T-SHIRT 222 55.5%

DRESSES 106 26.5%

OTHER 72 18%

6. What branded clothes do you usually buy?

CATEGORY NUMBER OF PERCENTAGE

RESPONDENTS

LOCAL MADE 60 15%

OTHER 64 16%
COUNTRIES
MADE
 88

ANYTHING 276 69%

7. Are you one of the people who are never goes out of style?

CATEGORY NUMBER OF PERCENTAGE

RESPONDENTS

YES 298 74.5%

NO 102 25.5%

8. Are you aware of the fashion trends nowadays?

CATEGORY NUMBER OF PERCENTAGE

RESPONDENTS

YES 373 93.25%

NO 27 6.75%

9. Do you love shopping?

CATEGORY NUMBER OF PERCENTAGE

RESPONDENTS

YES 305 76.25%

NO 95 23.75%

10. Are you always curious about how you dress and how the dress looks when you
wear it?

CATEGORY NUMBER OF PERCENTAGE

RESPONDENTS
 89

YES 276 69%

NO 16 4%

SOMETIMES 108 27%