BUSINESS PLAN FOR PET-IBIG

SEPTEMBER 2019

Km 7, Central Park Blvd, McArthur Highway, Bangkal, Davao

City

+639088184444 / 082-28638

Petibig0907.insurance@kalusugan.ph

www.petibig.com.ph
 SECTION 1. EXECTIVE SUMMARY

MISSION

PET-IBIG INSURANCE is dedicated in providing pet owners insurances for their

PAWSOME friends. The company is committed into providing our customers pet-problem
solutions using the insurances for lesser expenses in veterinary hospitals or clinics. The team
is directed to delivering effective, efficient and affordable insurances and services to the
customers.

THE COMPANY AND MANAGEMENT

PET-IBIG INSURANCE is a health insurance provider for all domesticated animals who
are in need of medical assistance. PET-IBIG INSURANCE is located at Km 7, Central Park
Blvd, McArthur Highway, Bangkal, Davao City, and incorporated in the province of Davao del
Sur. The company is owned by partners Roy Antalan and Jenieveb Rosales-Antalan, Roy is a
businessman for over 20 years now while his wife/partner Jenieveb graduated as a
veterinarian and now working in the veterinary field for almost 16 years.

PET-IBIG INSURANCE is in PAWRTNERSHIP with over 100 veterinarians, specialists,

zoo keepers, and wildlife experts all around the world for all our furry friends and
companions who bring joy in our lives through their presence.

The management of PET-IBIG INSURANCE is made up of actuaries to assess risk to set

appropriate premiums, claims adjusters to assess the right amount. Insurance claims and
policy processing clerk are the ones who determines if it is profitable to sell the insurance to
client or business.

OUR SERVICES

PET IBIG INSURANCE is one of the companies known for providing partial and full coverages
for medical fees and expenses. Our clients are pet owners who don’t have the necessary
capacity to include their furry friends to their budget and noble veterinarians whose
customers tend to compromise the welfare of their pets because of insufficient allocation for
the pet’s welfare. Pet-Ibig Insurance package includes:

 Php 20 000 – Php 35 000 medicine allowance annually

 Free check-up/consultation with our pawrtner veterinarians
 Free laboratory testing
  Php 15 000 vaccination allowance annually
 Tick and flea removal of your choice
 Discounts on grooming
 Seasonal promotions for clients availing for 3 years and above
(prices of allowances vary depending on breed, species, medical history, and age)
 Php 40 000 admission allowance

THE MARKET

Davao City’s population increases by 2% every year, with each pet owner having 7
pets at the most on average, according to our research. Slowly, Davao City has become a
haven for pet owners and animal lovers, alike. Unfortunately, only 2 out of 9 pet owners are
confident about their pet’s health and usually have them checked at least twice a year. Most
of them claim that their pets tend to accumulate a higher hospital bills than themselves.

OUR COMPETITVE ADVANTAGE

Pet-ibig insurance is proud to say that we are the first of our kind. We are the only
company here in Davao City who has created such Insurance service for the benefit of our
pets namely; medicine allowance, free check-up/ consultation, laboratory testing and etc. we
also have discounts, promos, and so much more for a very reasonable monthly fee of Php
350 - Php 550 per month, depending on the breed, species and health history.

Pet-Ibig Insurance’s marketing strategy is to advocate animal rights and welfare by

becoming an avenue to awareness of our pet’s health through financial assistance. Our
health is our true wealth; thus we must value our pets’ health as well, “Pet-Ibig for your pet
who needs pag-ibig”

*All medicines and vaccines are safe for consumption

*All veterinary pawrtners are well-trained and knowledgeable

FINANCIAL PROJECTIONS

Based on the size of our market and our defined market area, our sales projections for the
first year is Php500,000. We project a growth rate of 8% per year for the first 2 years

The salary for each of the co-owners will be Php30,000.00. On start up, we will have nine
trained staff, three to sell the insurance, three to input data into the system, and three to
conduct potential partners, and expect to hire four more this year once financing is secured.
To begin with, the corporation’s members will be working hand-in-hand with the front liner
employees up until they become financially stable.
Our main branch has already gained over millions of clients and have planned to reach out in
Davao City to assist the local pet owners here. In order to gain a number of customers, we
have built a website and social media sites in order to reach out easier. The financial
assistance that PET-IBIG INSURANCE will be offering to our future PAWRTNERS are sure to be
patronized by pet owners, one and all.

START-UP FINANCING REQUIREMENTS

The company is seeking Php200,000.00 to finance our first-year growth. Together with the
small investors Php50,000.00 each to meet working capital requirements.
 SECTION 2. Business/Industry Overview
NATURE OF THE INDUSTRY

The pet industry

According to the Market Research.com, the pet care and services here in the
Philippines particularly in Davao City continued to have an impressive growth in 2019.
Since there is an increase number of ownership of pets and growth in pet population
here in the city, there is also growth in sales of dog food, pet health care and other
pet services. The total pet expenditures in the Philippines totaled for approximately
Php 3.2 trillion and this includes:

 Food- Php 4,047,771,000.00

 Vet Care- Php 225.9 billion
 Pet Services: grooming & boarding- Php 2,893,793,003,500.00

According to the American Pet Products Association (APPA), there is an increase of

more than 4% over 2015. According to the Bureau of Labor Statistics, above average
job growth is expected for the industry – 11% growth between 2014 and 2024.

TRENDS DRIVING PET INDUSTRY IN GROWING

1. HUMANIZATION

Many pets have long been considered as part of the family, but in the recent years it
is observed that pets are treated like humans they are being fed, groomed and even
clothed.

2. PREMIUMIZATION
This trend is the creation of the high quality products and services to cater the
elevated requirements of our pets. These products and services includes clothes,
accessories, food, medicines and technologies used for their needs.

INFLUENCES

1. DEMOGRAPHICS

Philippines also has its demographic trends and the industry’s strength are
based into two main groups: kids and millennials.

Almost all of the children, teenagers, and young adults here in the Philippines
are fond of having pets in their houses, and because of this pet industry here in
the Philippines is rapidly growing because of the request of the children and
also millennials.

2. ECONOMIC

The pet industry revenue has shown growth even the economy of the
Philippines is facing a lot of problems. It shows that our current relative
economic strength bodes well for continued business strength.

BUSINESS DESCRIPTION
PET-IBIG INSURANCE is a health insurance provider for all domesticated animals who
are in need of medical assistance. The company is made to provide our customers
affordable insurances for their beloved pets.

In the recent years there are a lot of problems concerning the pets/animals in our
community and one of them is the incapability to provide the needs of their pets such as
foods, check-ups, and enough medicines. The Pet-Ibig Insurance company helps the
community through providing perfect services and insurance packages for pets. With these
packages it helps the owners lessen the bills needed to be paid.

EXISTING COMPETITION

Currently Pet-Ibig Insurance has no similar company here in Davao City, therefore
there is also no other company that dominates in the market that offers the same as ours.
The only competition that we have are the pet services here in the city it’s because pet
services in Davao is rapidly growing driven by the growth of population of pets/animals.
WHAT MAKES PET-IBIG INSURANCE UNIQUE

Pet-Ibig’s marketing strategy is to highlight the quality of the insurances and

pet care we provide. The company will be highlighting the quality of our services through
assuring you that we will provide all of your needs as long as we can and as long as we have
to. As our slogan says, “Pet-Ibig for your pet who needs pag-ibig.” We will provide care and
love to all the pets and treat them as one of us.

We will also offer some services that are unique and can’t be provided by any other
company here in Davao City mainly the medical insurance for pets and animals.

Sources:

-Business plan example of industry overview

Susan Ward (March 2019),https://www.thebalancesmb.com/business-plan-example-

of-the-industry-overview-2948009

-Pet expenditures,

https://www.statista.com/outlook/40130000/123/pet-food/philippines

https://www.americanpetproducts.org/press_industrytrends.asp

-Analysis report of pet industry,

FranchiseHelp Holdings LLC (2019), https://www.franchisehelp.com/industry-

reports/pet-care-industry-analysis-2018-cost-trends/

-Pet Ownership,

Pet secure (2019), https://www.petsecure.com.au/pet-care/a-guide-to-worldwide-pet-

ownership/
 SECTION 3. SALES AND MARKETING PLAN
MARKETING PLAN
PET-IBIG INSURANCE aims to promote a business which can surely be renowned and known
to provide quality service so that we can gain many pet owners willing to become acredited
to our insurance program. As the first animal insurance program to emerge in the industry,
we expect a large number of pet owners to avail our services. The way we advertise and
promote our membership is clear, detailed, and well-explained because of the influence of
our loyal customers. Another factor would be our veterinary partners acredited to our
services, promoting us to their loyal clients in order for us to gain new members in our team
and achieve a comprehensible growth for our business.

TARGET MARKET
PET-IBIG INSURANCE is located near different establishments, condo units, apartments,
subdivisions, and both high and low cost housing communities. Thus our customers vary
from type A(High Class) B(Middle Class) C(Lower Class). The company aims to create a price
range that fits the budget of pet owners coming from various classes, because we are striving
to cater every pet owner within and outside our vicinity. The company is also trying to
establish a partnership with other veterinary clinics and other pet grooming centers in the city
in order to create a mutual beneficial relationship and a collaborative effort to promote pet
healthcare at an affordable price for their clients. PET-IBIG INSURANCE is the first of its kind
to enter the industry, thus we don't have competitors at the moment, giving us the chance to
gain the loyalty of our target market.
.
PET-IBIG INSURANCE will be providing brochures which will be distributed by our business
partners to their clients after every schedule appointment with them every day. We will also
have staff distributing brochures once a week nearby local pet stores and other busy places
in the city. Aside from a brochure giveaway, the company will also be creating social media
accounts in order to connect with its clients faster and the dissemination of information will
be quicker. The company will also have a soft opening, launching our memberships to the
public and giving away freebies and promos to the first 100 customers who are about to
register themselves.

Pricing Strategy:
PET-IBIG INSURANCE bases their pricing in a way that can cater and convince the majority of
Davaoeños can afford without hurting their budget. Being the first, we aim to make our
company attractive and convincing to all of our customers. The customers may opt to pay
their insurance membership weekly, monthly, even yearly so that it wouldn’t be an
inconvenience our clients. The issuers will be well informed since before they signed their
contracts, they fully accept the terms and conditions that both the company and the client
will carry out.

SECTION 4. OPERATING PLAN

FACILITIES AND EQUIPMENT

The Pet-Ibig Insurance company will be having a building and in by which the
establishment will have many rooms available. First is the main room, in this room this
will be the place in by which the customers can apply for the insurance they wanted to
get or they would like to apply for their beloved pet. Next is the rooms for
consultation and in this room this is the place where the veterinarians will check the
animals unto which specific insurance the pet owner should get. There will also be
tools for check-up and testing tools.

ORGANIZATIONAL STRUCTURE

Pet-Ibig insurance has its CEO which also is one of the owner, Roy Antalan. The CEO
is the one who facilitates the whole company and is the one responsible for the whole
activity of the company. Under the CEO would be the General Manager, the general
manager would handle all the supervising managers, he or she would be the one who
would brief the supervisors on what to do and what are their tasks. Next is supervising
managers there would be 2 supervising managers one for the operations department
and the other is for the marketing department. Lastly the employees such as
veterinarians and consultants of each department they are the most essential
members of the organization or business for without them no one would be working
and performing all the tasks.

INITIAL STAFFING NEEDS

The initial staffing needs of the company would be the veterinarians and marketing
team. The company will add staffs if needed and if the company needs more efficient
workers. Pet-Ibig will add staffs through having interviews and background check of
the aspiring employees. There will be advertisements or announcements posted if the
company is in need of a particular worker.

SUPPLIERS AND ALLIANCES

The company will establish relationship with the medicine, pet food and equipment
suppliers so as to have discounts and will have a close connection with them. For the
alliances the company will establish relationship with other agencies who will give us
workers or employees.

HOW WILL THE OPERATIONS CHANGE AS THE COMPANY GROWS?

The operations won’t totally change as the company grows but instead it will be more
enhanced, intensified, and there will be improvement in the quality, value and extent
of the services that the company can offer to the customers.
 SECTION 5. FINANCIAL MANAGEMENT

The Pet-ibig Insurance is expecting to have ₱500,000 on the first year with an increase
of 8% per year for the first 2 years. For the electricity, water, and light bills we have
prepared ₱5,000, for the rent expense for the location we have prepared ₱20,000 for
it, our furnishings we have prepared ₱5,000 for it, for our signage we have prepared
₱3,000 for it, as for the salary we have prepared 30,000 for it. For our first year our
expected premium earnings are ₱200,000. Adding all the amounts of the bills to the
salary our we have a total of ₱63,000. Since we expect to have ₱586,443 in our first
year, we expect a gross profit of ₱386,443 because we have earned ₱200,000.
Subtracting our gross profit to our total expenses of 108,000. Our net income will be
237,000
In the next year we will multiply the 500,000 last year with 108% because we have
expected a to have a growth of 8% per year resulting to ₱633,358 as our sales
projection for 2 years of operations. In our 2 years of operations we have decided to
change our location, making our rent for the location ₱25,000 making our total
expenses ₱68,000. Our expected premium earnings will be ₱300,000 making our
gross profit ₱333,358. As for our sales income by the end of year 2 is ₱232,000
YEAR 1 YEAR 2

₱ ₱
SALES 500,000.00 633,358.00

₱ ₱
Earned 200,000.00 300,000.00

₱ ₱
GROSS PROFIT
386,443.00 333,358.00

LESS: EXPENSES
₱ ₱
Light, Power and Water 5,000.00 5,000.00
₱ ₱
Rent Expense 20,000.00 25,000.00
₱ ₱
Salaries and Wages 30,000.00 30,000.00
₱ ₱
Signages 3,000.00 3,000.00
₱ ₱
Furnishing 5,000.00 5,000.00
₱ ₱
63,000.00 68,000.00

₱ ₱
NET INCOME
237,000.00 232,000.00