Form of Business Ownership

The business is a limited partnership organized by five (5) individuals. This type

of business is chosen by the proponents considering the nature of the business and capital

requirement. A limited partnership is much like a general partnership, but with few

significant differences. Management of limited partnership rests with a “general partner”,

who also bears unlimited liability for the company’s debt and obligations. This type of

partnership allows any number of “limited partner” whose liability is limited to the total

amount of their investment. Limited partners also referred to as “silent partners” can

make investments in the company but have no direct involvement or control over the day-

to-day operations of the business. The business will have 4 limited partners and one

general partner. Limited partnership is accepted in the Philippines.

General Agreement of Owners

The partners will sign a legal written agreement recognized by the law that will be

approved by a lawyer to make the agreement valid. The agreement embodies the interest

and obligations of the partners which includes: Nature of the Agreement Rules for

Determining Existence of Partnership, Postponement of Rights of Person Lending or

Selling in Consideration of Share of Profits in Case of Insolvency, Meaning of Firm,

Power of Partner to Bind the Firm, Partners Bound by Acts on Behalf of Firm, Partner

Using Credit of Firm for Private Purposes, Effect of Notice that Firm will not be Bound

by Acts of Partner, Liability of Partners, Liability for Wrong Misapplication of Money.

The full written version of the agreement is shown on Appendix B.

2
Name of the Enterprise

The name Hergia Skin Care Company was derived from the combination of two

words: “Herbal”, meaning something made from herbs and “Hygeia”, the Greek goddess

of health, cleanliness and sanitation. Skin Care was also attached to the name because the

business focuses and concern about caring the skin of its customers.

Description of the Business

Hergia Skin Care Company is a small scale Filipino business engaged in

manufacturing environment and health friendly natural skin care product. The business

was established to set a new trends in the local skin care industry in Santa Rosa, Laguna.

The business offers its first and unique product, the Tuba-tuba Leaf Soap.

Logo of the Business and its Meaning

Figure 1. Logo of the Business

The logo was made through the mind and ideas of the proponents. It is the

combination of icon and wordmark logo. A woman was placed at the center with her bare

3
back to signify that company is focused on skin care. It also have four leaf-like pillars

that symbolizes the use of natural ingredients in making the product. Color blue signifies

trust because the proponents want to become a brand that its customers can trust and

purple signifies health and immunity. The proponents decided to use the blue and purple

because it is soothing to the eyes just like its products that soothes the skin. The name of

the company is also included in the logo so that the customers can always remember the

company name.

Vision

The company’s vision is to become a trusted natural skin care company that

dreams for a sustainable lifestyle to every Filipinos while achieving profitable growth

through superior customer satisfaction, quality, and innovation.

Mission

To make the vision possible the company will:

 Provide best quality of natural skin care product closer to the customers on

affordable price.

 Develop the values and competence of its employees that will help them to

achieve their full potential and contribute meaningful growth to the company and

 Protect and take care the environment by offering all natural and eco-friendly

products without chemical substances that can be harmful to the environment.

4
Proponents of the Business
Encouraged by the urge to enter the world of Marketing, the proponents decided

to put up the business not just for the sake of money but also to face the challenge of the

local market. The business owners are Danica M. Cantera, Dianna Grace L. Maaño,

Maria Roxette I. Quiambao, Kamille C. Vigo, and Rexter G. Yambao. They are all

graduate of Bachelor in Business Administration Major in Marketing Management at the

Polytechnic University of the Philippines Santa Rosa Campus. The four ladies are the

limited partners while the gentleman is the general partner.

Table 1
Proponents of the Business
Name Age Address Contribution
Cantera, Danica M. 20 Brgy. Tagapo, Santa Rosa Laguna ₱ 192,500
Maaño, Dianna Grace L. 19 Brgy. Dita, Santa Rosa Laguna ₱ 192,500
Quiambao Maria Roxette I. 19 Brgy. San Antonio. Biñan Laguna ₱ 192,500
Vigo, Kamille C. 20 Brgy. San Antonio. Biñan Laguna ₱ 192,500
Yambao, Rexter G. 19 Brgy. Kanluran, Santa Rosa Laguna ₱ 330,000
Total ₱ 1,100,000

Organizational Structure

Business requires a structure to grow and be profitable. Designing an

organizational structure helps the top management identify skills that needs to be added

to the company. Planning the structure ensures there are enough human resources within

the company to accomplish the goals set forth in the company’s annual plan. It is also

important that responsibilities are clearly defined. Hergia Skin Care Company will use

Hierarchical Type of organization. It follows the layout of a pyramid. The layout consists

multiple entities that descend into the base of staff level employees. The Hergia Skin

Care Company organizational structure is shown below.

5
 General Manager

Accounting Administrative/Human
Officer Resource Officer

Worker Worker Delivery

#1 #2 Man

Figure 2. Organizational Structure

As a small-scale business, Hergia Skin Care Company will be managed in an

informal and paternalistic way. However, strict rules will be enforced regarding quality

standards and production operation. The business will be headed by the General Manager

who owns the highest position of the structure and will be aided by administrative staff

who will be in charge of production in the absence of general manager. The financial

officers who is also the second higher position will be performing the activities related to

the finances of the business. The marketing officer is in charge of preparing, planning and

project managing the publication of all publicity material to maximize brand

promotion. The staff level employees which includes two production staff, a cashier and

one delivery man sits at the bottom of the pyramid.

6
Manpower Requirements

The company will be needing 6 people for the business to operate. The manpower

requirements of an organization is identified and plans are established to meet those

requirements. There are two primary components. First, manpower requires forecasting.

It deals with what an organization’s needs for manpower will be and when that

manpower will be needed. Second, which involves evaluation of these forecasts, is the

ways to meet those needs. The needs can be met by recruiting or hiring, contracting,

making temporary hires, retraining personnel, transferring personnel, or through attrition

programs, either normal or forced.

Job Description, Specification and Qualification

A job description is a document that describes the general tasks, or functions, and

responsibilities of a position. Job specification is a statement of the essential components

of a job class including a summary of the work to be performed, primary duties and

responsibilities, and the minimum qualifications and requirements necessary to perform

the essential functions of the job. Lastly, job qualification is a special skill or type of

experience or knowledge that makes someone suitable to do a particular job or activity.

Hergia Skin Care Company believes that hiring qualified individuals to fill

positions at the company contributes to the overall strategic success of the company.

Each employee is hired to make significant contributions to Hergia Skin Care Company.

In hiring the most qualified candidates for the positions, the hiring process should be

followed.

7
 Table 2
Job Description, Specification and Qualification
Position Description Specification Requirements
General Managers are – supervising and – require a bachelor degree in
Manager responsible for monitoring the work Business
managing and of financial, – with at least 5 years’ experience in
facilitating the production and sales
overall operation of administrative staff – relies on experience judgement
the business and – delegating task and accomplish goals
check if every staff is – marketing of the
efficient functioning business

Financial The treasurer – forecast cash flow – require a bachelor degree in

officer position is positions related finance in accounting with at least 4
responsible for borrowing needs and years’ experience
available funds &
corporate liquidity – should have understanding bank
investment
investment and risk accounting management and etc.
– ensure that sufficient
management related funds are available to
to the company's meet ongoing
financial activities operations and capital
requirement

The role is to facilitate – dealing with – graduate of 2 or 4 years business

Administrative the production and
officer manage the business in
absence of General
Manager
correspondence related or administrative course
complains and queries – good in communication skill & strong
– dealing with staff and organization skills
recruitment and
appraisals

The workers are the Accomplishes – with or without experience in

Workers ones that works manufacturing jobs in production environment
especially at manual or fast but effective way -- ability to work on own initiative
industrial labor or with – strong understanding of the
a particular material a expectations associated with production
factory worker

Driver Their responsibilities Gathering of raw – has at least 1-2 years’ experience in
include transporting materials from driving and travel-smart
goods from one place suppliers and deliver – map reading skill
to another by driving a finished product to the
delivery vehicle retail store.

8
Hiring Process

This is the process of finding the best candidates, reviewing applicant credentials,

screening potential employees, and selecting employees that is fit for the organization.

Each employee is hired to make significant contributions to the company to

achieve its goals. In hiring the most qualified candidates for positions, the following steps

should be followed.

Figure 3. Hiring Process

The company will hire directly its employees and interested applicants must

submit the following requirements at the business location or send their resume on

hergiaskc@gmail.com.

Hiring Requirements:

 Resume
 Barangay Clearance
 Police Clearance
 NBI Clearance
 2pcs 2x2 I.D Picture
 High School or College Diploma
 Medical Examination

9
Orientation of Employees

Orientation is an initial process that provides easy access to basic information,

programs and services, gives clarification and allows new employees to take an active

role in their organization.

Training Policy

Training is essential to help the employees apply what they learn on their

orientation adapt to the culture and policy of the company, and to have a homogenous

profile of the employees who have diversed educational and sociocultural backgrounds.

Also to put in practice, learn and improve the skill for their job description.

Hergia will adopt the job training because it is the simplest type of training for

employees. It requires merely a foreman, a trained instructor or a skilled operator who

will teach directly in the inexperienced worker on the job specific.

Compensation and Benefits

Compensation is defined as something that is given to someone in exchange of

service or a payment given for doing a job. While benefits is something extra that is

given by an employer to workers in addition to their regular pay. The company consider

its employees as its biggest asset. The company will apply the laws implemented by the

government in relation to employment to give equitable compensation and benefits to

employees.

10
Salaries and Wages

Salaries is an amount of money that an employee is paid, it is also fixed

compensation paid regularly for services. Wages is an amount of money that a worker is

paid based on the number of hours, days, etc., which are worked. The initial salary rate

for Hergia’s employees is shown below.

Table 3
Initial Salary Rates of Employees
Position No. of Personnel Monthly Rate Annual Salary
General Manager 1 ₱ 14,700 ₱ 176,400
Financial Officer 1 ₱ 14,500 ₱ 174,000
Administrative Worker 1 ₱ 13,000 ₱ 156,000
Workers 2 ₱ 3,960 ₱ 47,520
Driver 1 ₱ 7,800 ₱ 93,600
Total ₱ 53,960 ₱ 647,520

Benefits of the Employees

To fulfill its mission on developing the values and competence of its employees.

Hergia will give the following benefits to its employees.

Social Security System (SSS)

By law, private sector employees must be covered under the Social Security

System (SSS). Based on each employee’s gross monthly pay, both the employer and

employee remit monthly contributions to the SSS. In return, the SSS benefits cover

maternity, retirement, sickness, disability, death and pension benefits.

11
PHILHEALTH

The PHILHEALTH is a health insurance program for all SSS and GSIS member

and their dependents. It includes rooms and boards, medical expenses, medical/dental

practitioner’s fee, anesthesiologist’s fee, operation room fee and fee for surgical family

planning procedures.

PAGIBIG Fund

The Home Development Mutual Fund (HDMF), also known as the Pag-IBIG

Fund, is mandatory to all employees who are compulsorily covered by GSIS or the SSS.

Through the Republic Act No. 9679, the HDMF benefit includes 1.) Savings, 2.) Short

term loans and 3.) Access to low cost housing programs. Both the employee and the

employer contributes to the fund. For a monthly compensation of PHP 1,500 and less the

employee contributes 1%, and above PHP 1500 monthly compensation, it is 2%. The

employer’s contribution always remains at 2%. Contributions are deducted from gross

income before computation of the income tax. Note that the maximum employee

contribution is set at PHP 5,000. Hence, the minimum contribution for employees and

employers is now set at PHP 100.

Overtime Pay

Work may be performed beyond eight (8) hours a day provided that the employee

is paid for the overtime work, an additional compensation equivalent to his regular wage

plus at least twenty-five percent (25%) thereof. Work performed beyond eight hours on a

holiday or rest day shall be paid an additional compensation equivalent to the rate of the

first eight hours on a holiday or rest day plus at least thirty percent (30%) thereof.

12
Holiday Pay

Every worker shall be paid his regular daily wage during regular holidays, except

in retail and service establishments regularly employing less than ten (10) workers. The

employer may require an employee to work on any holiday but such employee shall be

paid a compensation equivalent to twice his regular rate.

The following shall be considered regular holidays:

Table 4
List of Holidays
Holiday Date
New Year's Day 1-Jan
Maundy Thursday Movable Date
Good Friday Movable Date
Black Saturday Movable Date
Araw ng Kagitingan 9-Apr
Labor Day 1-May
Independence Day 12-Jun
Cityhood of Sta. Rosa 10-Jul
Ninoy Aquino Day 21-Aug
National Heroes Day Last Day of August
Eid'l Fitr Movable Date
All Saints' Day 1-Nov
All Souls' Day 2-Nov
Bonifacio Day 30-Nov
Christmas Eve 24-Dec
Christmas Day 25-Dec
Rizal Day 30-Dec
Last Day of the Year 31-Dec
Chinese New Year Movable Date

13
Rest Day

It shall be the duty of every employer, whether operating for profit or not, to

provide each of his employees a rest period of not less than twenty-four (24) consecutive

hours after every six (6) consecutive normal work days.

Meal and Rest Periods

Under Article 83, the employee is provided a one-hour employee benefit for

regular meals when working on an eight (8 hour) stretch. The company will give its

employees lunch break from 12NN to 1PM. Employees are also provided adequate rest

periods in the morning or coffee break for 10 minutes and afternoon break for 15 minutes

which shall be counted as hours worked.

13th Month Pay

Each year, a 13th month pay is given to all rank-and-file employees. By law, this

benefit must be paid before December 24th and is mandatory. Employees who have

resigned or have been severed from the company before the payment of the 13th month

pay are still entitled to it in proportion to the length of time they worked for during that

year. The 13th month pay must be at least 1/12th of the total basic salary of each employee

earned during that calendar year.

Service Incentive Leave

Every employee who has rendered at least one (1) year of service is entitled to a

Service Incentive Leave (SIL) of five (5) days with pay. SIL may be used for sick and

vacation leave purposes. The unused SIL at the end of the year can be converted into

14
cash using the salary rate at the date of conversion. It is the employer’s prerogative to

grant additional vacation leave.

Parental Leave

The Labor Code of the Philippines covers three different types of parental leaves:

maternity leave, paternity leave and solo-parent leave.

Maternity Leave

Whether married or not, each pregnant employee is entitled to a maternity leave

benefit of 60 days for a normal delivery or miscarriage, or 78 days for a caesarean

delivery, for up to four pregnancies. For the duration of the maternity leave, the employee

receives a fraction of his regular monthly salary from the company which is in turn

reimbursed by the SSS. The maternity leave benefit being given instead of a regular

wage, it cannot be included in an employee’s 13th month wage.

Paternity Leave

All married male employees are entitled to a 7 day paternity leave for the delivery

or miscarriage of his legitimate spouse with whom he must live, for up to four

pregnancies. The paternity leave is at the cost of the employer and is not reimbursed by

the SSS.

Solo-Parent Leave

In addition to parental leaves at the time of a child’s birth, the Filipino labor code

drew a special leave for solo-parent employees as described in the Solo Parents Welfare,

15
Republic Act No. 8972. The employee must have been working for at least a year to be

entitled to a solo-parent leave, which allows him to 7 working days of leave in a year.

Employee ID

Hergia’s Employee ID cards include the employee’s name, photo, job title,

contact number of any family member in case of emergency making quick personal

identification to the employee. The company will provide ID’s to its employees and will

valid for five years. It can be used as a valid ID yet not transferable. If an employee

resigned he or she must surrender the ID. Identification card is important because it can

increase building security, holds greater accountability, provide better customer and

employee relationship and local benefits and brand recognition. The identification card of

the business is made from synthetic plastic that is durable. An example of Hergia’s

Employee ID is shown below.

Employee Uniform

Figure 4. Employee ID

Employee Uniform

Uniforms are work clothes that is required and do not suitable for everyday use.

The business consider it important to require its employees to wear uniforms. Hergia

16
implies that having a uniform is important because it establishes an impression in the

mind of the customers, inspires confidence in the industry by announcing that the

individual is a professional with product knowledge and willingness to help and

eliminates the need for creating and enforcing dress code.

Figure 5. Employee Uniform

The company makes sure that every employee is comfortable wearing the

uniform. The uniform is simple as placing embroidered logo on a professional-looking

garments. As shown above, the uniform of the employee is color white that represents

cleanliness and sanitation with an accent of green that signifies nature. In addition to the

uniform the production staff will also wear sanitary uniform such as gloves, laboratory

gown, hairnet and etc. to be provided by the company. The uniform costs P 320.00 and

employees must buy one uniform and one free uniform will be provided by the company.

17
Organization Policies

Organization Policies and Procedures establish the rules of conduct within an

organization, outlining the responsibilities of both employees and employers. It is in

place to protect the rights of workers as well as the business interests of employers.

1. Equality- every employee must have an equal and fair treatment at the workplace.

2. Substance Prohibition- no employee shall be under the influence of alcoholic

beverages, smoking, and using drugs while reporting on work are strictly

prohibited.

3. Attendance- employees may allow only a certain number of absences within a

specified time frame. Disciplinary action may allow if the employees miss more

absences than the company allows.

4. Grooming of the Employees- every employee must always wear their proper

company uniform and I.D during working hours.

5. Break Time- every employee must have a break time with a maximum of 1 hour

for lunch break and 15 minutes for snacks.

6. Use of Gadgets- if the employee/s conducts illegal activities on one of the system

the employee/s must be suspended for 1 week.

7. Compensation- the company will provide competitive wages and benefits to its

employees that meet or exceed the legally required minimum.

8. Health and Safety- our skin care company will provide and maintain for all

employees a safe and healthy work environment that meets or exceeds applicable

standards for occupational safety and health.

18
 9. Sanctions and Punishments- the company will implement penalties or other means

of enforcement used to provide incentives for obedience with the law, or with

rules and regulations. Criminal sanctions can take the form of serious punishment,

such as corporal or capital punishment, incarceration, or severe fines.

Employees Code of Conduct (Penalty and Sanctions)

Legend:

WR – Writing Reprimand 3D -- 3 Days Suspension

2D – 2 Days Suspension DM – Dismissal

Offences:

1. Tardiness of a 3 or more times a month or an aggregate of 6 or more times a

month.

Penalty: 1st Offense: WR – Writing Reprimand 2nd Offense 2D – 2 Days

Suspension 3rd Offense 3D - 3 Days Suspension 4th Offense DM – Dismissal

2. Absences without leave (AWOL) or failure to notify superior of in ability to

report for work.

Penalty: 1st Offense: 2D – 2 Days Suspension 2nd Offense 3D - 3 Days Suspension

3rd Offense DM – Dismissal

3. AWOL for 4-5 consecutive days or more

Penalty: 1st Offense 3D - 3 Days Suspension 2nd Offense DM – Dismissal

4. Under timing without permission

5. Penalty: 1st Offense: WR – Writing Reprimand 2nd Offense 2D – 2 Days
Suspension 3rd Offense 3D - 3 Days Suspension 4th Offense DM – Dismissal
6. Reporting sickness to obtain benefits of other purpose.

Penalty: 1st Offense: 2D – 2 Days Suspension 2nd Offense 3D - 3 Days

Suspension 3rd Offense DM – Dismissal
7. Failure to punch or initial timecard as required.

Penalty: 1st Offense: 2D – 2 Days Suspension 2nd Offense 3D - 3 Days

Suspension 3rd Offense DM – Dismissal

19
 8. Tampering or unauthorized alternations on timecard.

Penalty: 1st Offense 3D - 3 Days Suspension 2nd Offense DM – Dismissal

9. Refusal to follow worked schedule without justifiable reason.

Penalty: 1st Offense: 2D – 2 Days Suspension 2nd Offense 3D - 3 Days

Suspension 3rd Offense DM – Dismissal

Legal Requirements

A legal requirement is a quality or qualification that a business must have in order to

be allowed to do something or to be suitable for something.

 SEC Registration
- Incorporation Papers/By-Laws
- Capitalization, Subscribed shares, Paid-Up Shares (minimum of P .5M)
- List of Stockholders & Citizenship, their addresses respective Community Tax
Certificates and TIN
- Latest General Information Sheet
- Board Resolution of Authorized Signatories
- Corporate Address
- Appointed Corporate Treasurer-in-Trust
- Bank Certificate for Corporate paid up capital
 DTI Certificate of Business Registration
- Certified photocopy of the Articles of Incorporation
- Application Form
 Local Government License and Mayor's Permit
- Articles of Incorporation
- DTI Certificate
- Corporate Community Tax Certificate
- Other Local Gov't Clearances ( employees' health certificate, ID, Barangay,
Police, NBI clearances, 4 1x1 photos of all company employees, etc.)
- General Liability Insurance
 BIR
- Corporate Registration
- Articles of Incorporation
- DTI certificate
- Mayor's Permit & Business Licenses
20
 - Incorporators/Employees Registration and TIN
- 1 pc passport size colored picture in white background
- Civil registry documents; i.e. birth, marriage certificates
 SSS/Pag-IBIG/PHILHEALTH
- Articles of Inc.
- DTI Certificate
- Mayor's Permit and Business Licenses
- Registration
- Employees' Alpha List, SSS number, Pag-IBIG Number, PHILHEALTH
Number
 DOST Accreditation
Legal
1. Mayor's Permit/Municipal License
2. Business Name Certificate for Single Proprietorship
3. Articles of Incorporation/ Partnership & By-Laws for Corporation/Partnership
and Business Name Certificate, if applicable
Physical
1. Contract of Lease of office space/Certificate of Title

Projected Timetable of Activities

Gantt Chart is a series of horizontal lines that shows the amount of work done or

production completed in certain periods of time in relation to the amount planned for

those periods. These charts are useful in planning a project and defining the sequence of

tasks that require completion. In other words, it is a visual representation of project

schedule. The proponents choose to formally start its operation on the month of July for

the preparation of the “ber” months. The detailed time table of Activities of Hergia is

shown below.

21
 Table 5
Projected Time table of Activities
WORK Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul
ACTIVITIES ‘17 2018
A. Project
Feasibility
B. Business
Licensure and
Registration
C. Store
Renovation
D. Canvassing
of Tools and
Equipment
E. Installation
of Furniture
and Fixtures
F. Acquisition
of Raw
Materials
G.Employment
and Selection
Process
H.Promotional
Activities
I. Start of
Operation

As shown on the Gantt chart, the project will start on July 2017. The registration

of the business will take two months that will cover the months of September and

October. Renovation and furnishing of the business plant and store will be on the month

of October to December. On the month of December and January 2018, the proponents

will canvass tools and equipment needed for the operation and will be installed on the

month of January. The Acquisition of Raw materials starts on January to March. The

hiring process of employee begins also on January until April. The promotional activities

of the company will take place on May to June and the operations will start on July 2018.

22
23
The Product Description

Tuba-tuba Leaf Soap is 100-gram face and body soap made from 100% natural

ingredients proven effective for promoting health, hygiene and beauty. It has a dimension

of L=7.7 cm W=2.4 cm H=5.3 cm. Tuba-tuba Leaf Soap comes from fresh and natural

extract of Tuba-tuba leaves which has an antibacterial property that prevents the

spreading and kills the bacteria that causes body odor. It also has an antibiotic, anti-

inflammatory and wound healing properties that is effective for curing wound, eczema,

scabies, dermatitis, pruritic lesion and other skin problems. Tuba-tuba Leaf Soap also

contains Green Tea oil that nourishes and hydrates the skin. It has anti-aging and

antioxidant benefits that can help delay signs of skin aging, such as sagging skin, sun

damage, age spots, fine lines, and wrinkles. The polyphenols in green tea help neutralize

harmful free radicals, which can cause significant damage to the skin and accelerate the

aging process. Other benefits of using this soap is its effectiveness in curing acne and

removing blackheads. Unlike other Lye-based soaps available in the market, the good

thing about Tuba-tuba Leaf Soap is it is Glycerin-based which is hypo-allergenic or does

not create any negative reaction that can irritate and burn the skin. Although it sounds

harmless, lye is a caustic soda that is highly corrosive and can cause burning if it comes

in contact with skin. Since our soap is Lye free, it has no harmful chemicals. Tuba-tuba

Leaf Soap is very safe to use and applicable to all skin types even for the most sensitive

skin. Tuba-tuba Leaf soap that is well made should last about 24 months before it lose

effectiveness.

24
Raw Materials and Cost

Raw materials are the basic materials that can be used to make or create

something. It is also something with a potential for improvement, development or

elaboration. The cost for raw materials is shown below:

Table 6
Raw Materials Cost
Raw Materials Quantity Cost/ Unit Total Cost
Tuba-tuba
720,000g ₱ 0.093856/g ₱ 67,576
Leaf Extract
Raw Materials
Clear
Quantity (g)/(pcs) Cost/ Unit Total Cost
5,976,000g ₱ 0.10/g ₱ 597,600
Glycerin
Tuba-tuba
Green Tea
Leaf Extract 2,880,000g ₱ 0.099/g ₱ 287,536
360,000g ₱ 0.10/g ₱ 36,000
Essential
Clear
Oil
Food
Glycerin 2,880,000g ₱ 0.11/g ₱ 316,800
Coloring 360,000g ₱ 0.058/g ₱ 20,880
Green Tea
Essential Oil 1,080,000g ₱ 0.077/g ₱ 83,160
Total
Food
7,200,000 ₱ 708,376
Coloring 360,000g ₱ 0.058/g ₱ 20,880
Packaging
Note:
Box The measurement of 72,000pcs.
raw materials is equated₱ to grams.
2.00/pcs ₱ 144,000
Total Tuba-tuba Leaf Soap
7,200,000 ₱ 708,376
is made from the following ingredients. The needed

measurement of every ingredients is also indicated. The total amount of ingredients is

equivalent to 2,500 grams of mixture needed for day-to-day production of the product.

Name Description
Tuba-tuba Leaf Extract
Tuba-tuba Leaf Extract is the liquid
extracted from the Tuba-tuba leaf
that can be used to treat different
kinds of skin disease.
Amount: 2.5 liters

25
 Clear Glycerin
It is produced naturally from either
vegetable or animal sources.

Amount: 20.75 kilograms

Green Food Color

Food coloring, or color additive, is
any dye, pigment or substance that
imparts color when it is added to
food or drink.
Amount: 500 ml

Green Tea Oil

An essential oil is a concentrated
hydrophobic liquid containing
volatile aroma compounds from
plants.
Amount: 1,250 ml

Supply of Raw Materials

Knowing the supply and source of raw materials is important because it will

determine if the business can still produce its product. The supply for raw materials is

constant and no fear for possible shortage or scarcity. Hergia will have two suppliers for

every raw materials so when the other one has no more supply the business can get its

raw materials on the backup supplier. The raw materials for Tuba-tuba Leaf Soap is very

sustainable and constant that will enable the business to produce its product. The business

will get its raw materials to the following suppliers.

26
 Table 7
Supply of Raw Material

Raw Materials Company Location Contact Info.

Santa Rosa Laguna & www.facebook.com/efjdayrit,
Clear Glycerine Ef J. Dayrit, Soap Scentral
Muntinlupa City www.facebook.com/soapscentral
Santa Rosa Laguna & www.facebook.com/efjdayrit,
Essential Oil Ef J. Dayrit, Soap Scentral
Muntinlupa City www.facebook.com/soapscentral
Santa Rosa Laguna & www.facebook.com/efjdayrit,
Food Coloring Ef J. Dayrit, Soap Scentral
Muntinlupa City www.facebook.com/soapscentral
Tuba-tuba leaf Santa Rosa & Cabuyao
Household, Land owners
extract Laguna
Dmax
Soldiers Hill Vill.
Packaging Box Speed
Muntinlupa City 0917-807-7372
Printint Inc.

Machineries and Equipment Needed

Machineries are machines of a particular kind or in general. It is an organization

or system by which something is done. While equipment is defined as supplies or tools

needed for a special purpose used in operation or activity.

Table 8
Machineries and Equipment Needed
Items Quantity Cost/Unit Total Cost
Mixing Pot 1 ₱ 98,197 ₱ 98,197
Soap Molder with
1 ₱ 19,281 ₱ 19,281
Cutter
Wax Tank 1 ₱ 44,176 ₱ 44,176
Measuring Cups and
1 ₱ 550 ₱ 550
Spoons
Strainer 1 ₱ 45 ₱ 45
Electric Stove 1 ₱ 700 ₱ 700
Weighing Scale 1 ₱ 450 ₱ 451
Total ₱163,399 ₱163,399

27
 Name Function

Mixing Pot
This equipment is used to mix and
pour soap. When used, one person
can produce hundreds of pounds of
soap per day easily and perfectly.
Exterior dimensions: 11-5/8" (29cm)
dia. X 10-1/2" (26.7cm) deep

Soap Molder with Cutter

Better saponification is achieved in
these large mold with built in cutter
due to the even sustained
temperatures in completing the
conversion of oils to glycerin.
Exterior dimensions: 43” (109cm)
high

Wax Tank
Easy to handle, move around and
heats waxes and oil very fast.
Exterior dimensions: 18 11/16”
(8.86cm) high by 13” (5.11cm) in
diameter

Measuring cups and spoons

Primarily used to measure

the volume of liquid or bulk.

28
 Strainer

A device having holes punched in it

or made of crossed wires for
separating solid matter from a liquid

Electric Stove

An electric stove or electric range is

a stove with an integrated electrical
heating device to cook and bake.

Weighing Scale

Weighing scales are devices to

measure weight or calculate mass.

Exterior dimensions: Platform,

8.50”x 7.0” (22cm x 18cm)

Manufacturing Process

Manufacturing engineering or manufacturing process are the steps through which

raw materials are transformed into a final product. The manufacturing process begins

with the product design, and materials specification from which the product is made.

29
These materials are then modified through manufacturing processes to become the

required part.

Figure 6. Manufacturing Process

The Manufacturing Process:

1. Prepare all the ingredients. Make sure that all ingredients are the required amount

in making the soap.

2. Melt the Glycerin base soap on the wax tank.

3. Combine all the ingredients on the electric mixing pot. Pour the Glycerin base

soap first then add the Tuba-tuba Leaf Extract then the Green Tea Oil. And lastly

pour the coloring.

4. Pour the mixture in the soap molder, set aside and let the soap dry for 3-4 hours.

5. If the mixture is already solid, cut the soap with the built in cutter of the soap

molder.

30
 6. Weigh every soap in the weighing scale to make sure all are at the right amount of

grams.

7. Pack the soap in the carton box.

8. Check if the finished product is in the right phase. Free from any defects or

damage.

9. Store the finished soap in the storage.

10. The soap is now ready for selling or delivery.

Waste Disposal System

Once a material is deemed no longer useful and is ready for disposal it is

necessary to consider whether it can be safe and legally put in a dumpster for land filling,

poured down the drain or set aside as a hazardous waste for special disposal. Managing

waste appropriately is not only because of desire to protect the natural resources but also

because of legal restrictions which control disposal. Dispose of waste in accordance with

all state and local regulation.

To fulfill its mission on being an eco-friendly business, Hergia will make sure that

the waste of the business is properly managed and disposed. Since the product of the

company is all-organic, it is very safe to use and to dispose it has no harmful chemicals

that can be harmful to the environment and to the health of people. The biodegradable

solid waste of the business like the extracted leaves of Tuba-tuba will be disposed in

compost pit behind the building so the materials will break down into humus after a

period of time. While the non-biodegradable waste will be legally put to dumpster and

31
collected by the garbage collector sponsored by the city government of Santa Rosa

Laguna every 10pm. The liquid waste will be disposed in the proper sewage and drainage

system under the building that the business repair. This is designed to reduce the potential

impact of new and existing development with the respect to surface water drainage

discharge.

Schedule of Operation

A schedule or a time table, as a basic time-management tool, consists of a list of

times at which possible tasks, events, or actions are intended to take place, or of

a sequence of events in the chronological order in which such things are intended to take

place. The process of creating a schedule - deciding how to order these tasks and how to

commit resources between the varieties of possible tasks - is called scheduling, and a

person responsible for making a particular schedule may be called a scheduler. Making

and following schedules is an ancient human activity.

Table 9
Schedule of Operation
Task Manpower Requirement Time of Duty Time Allotted
Purchase all the material Accounting Officer & Delivery
7am:8am 1hr
from the supplier Man

Preparing and mixing all the

ingredients in making Tuba- Workers 8am:4pm 8hrs
tuba Leaf Soap

Preparing the store Administrative 7am:8am 1hr

Opening the
store/accommodating the General Manager 8am:4pm 8hrs
customer

32
Production Schedule

A production schedule is a plan for individual commodities to be produced in

each time period. This plan quantifies significant processes, parts and other resources in

order to optimize production and to anticipate needs and completed goods. Since a

production schedule drives much factory activity, its accuracy and viability dramatically

affect profitability. A typical business will modify its production schedule in response to

large customer orders, to accommodate resource changes, to reduce costs and to increase

overall production efficiency.

Table 10
Production Schedule
Day Week Month Year
Per Piece 199 1,194 57,312
Per Grams 19,900 119,400 5,731

Assumptions:

1. The company can produce 2,500 grams or equivalent to 250 pieces of Tuba-tuba

Leaf Soap per day.

2. There are six (6) working days every week.

3. The supply of raw materials is constant there is no fear for possible shortage.

4. The equipment and tools are functioning well no fear for delay in the

manufacturing process.

33
Plant Size and Layout

The business will occupy a semi-furnished commercial space to start the

operation, it has a floor area of 60sqm. The floor layout is shown below.

Figure 7. Plant Layout

The plant layout above show the five main areas of the building. The store,

administrative office, production area, utility storage and parking area. There is also a

pantry and a toilet for the administrative and workers to use throughout the day. The

entrance and exit that the administrative and workers is the same which is located at the

far left of the building which will go across directly to the production area. At the right

side, there would be a pantry, utility storage and toilet that can be used by the

34
administrative and the workers. The building has no storage room because the raw

materials and the finished product is not that big and not too heavy to store. Instead of

having a storage room the proponents decided to store its raw materials on the big cabinet

within the production area so it will be more convenient to the workers because they

don’t have go anywhere just to get the raw materials needed. The finished goods will be

stored in the store where shelves are placed to be the storage for finished goods. This will

expose the product to its customers. The product is not that big and does not require a big

space to occupy. There will be a parking area beside the store because every business

should have their own parking lot and must obey the existing laws of the government

parking regulations.

Plant Location

Hergia Skin Care Company is located at Diamond St. Francisco Canicosa Ave.,

Commercial Complex, Barangay Balibago, Santa Rosa City, Laguna. The location will

be rented monthly for Php 30,000.

The business is at the left side of Target Mall near Max’s Restaurant beside

Ministop Convenience Store in front of Chowking and Red Ribbon. Customers from

Santa Rosa, Biñan and other point of origin can get to the store by riding a jeepney going

to Balibago, Complex. The vicinity map is shown below.

35
 Figure 8. Vicinity Map

The location had been chosen by the proponents considering the following

factors:

1. Demographics- the proponents considered who are the customers and how

important their proximity to the location of the business.

2. Foot Traffic- the proponents want to monitor the traffic outside their location at

different days of the week to make sure the volume of pedestrians’ traffic meets

the need of the business.

3. Accessibility and Parking- the proponents also took in consideration how

accessible the business will be for the customers, employees and suppliers. The

proponents assured there is a convenient parking for customers and suppliers.

4. Competition- the proponents take in consideration the presence of competitors

located nearby if there is such.

5. Proximity to other Businesses- the proponents consider the other businesses

situated in the area because those businesses and their customers can also become

customers of their business.

36
 6. Resources- the proponents consider the accessibility and proximity of the location

to its resources.

7. Ordinances- the proponents checked the ordinances and sizing restriction of the

government in the area and how it can affect the business in any ways.

8. Utilities and other Cost- the proponents consider the rental fee, electrical and

other billings.

Exterior Perspective

The exterior perspective of the business is shown below. The store is painted

white and has a green bricks in the lower part. The main door is a sliding door with roll

ups. There is another door for entrance and exit of products and can also use as

employees’ entrance and fire exit. The store also have many tinted windows to ventilate

the store and for the sunlight to enter. There is also a parking lot beside the store. The

proponents avoided having a parking lot in front of the store because it will block the

store. Since the store is facing the traffic, customers can easily see it because it is an

appealing and well-designed store.

Figure 9. Exterior Perspective

37
Other Machines and Equipment

A machine is a constructed thing whether material or immaterial which is

any of various apparatuses formerly used to produce stage effects. An equipment

is tangible property (other than land or buildings) that is used in the operations

of a business.

Table 11
Office Equipment
Items Quantity Cost/Unit Total Cost
Computer Set 2 ₱ 15,000 ₱ 30,000
3-in-1 Printer 1 ₱ 10,000 ₱ 10,000
Air Condition 1 ₱ 3,500 ₱ 3,500
Exhaust Fan 2 ₱ 1,840 ₱ 3,680
Electric Fan 3 ₱ 1,700 ₱ 5,100
Telephone 1 ₱ 941 ₱ 941
Water Dispenser 1 ₱ 2,000 ₱ 2,000
Fire Extinguisher 2 ₱ 2,220 ₱ 4,440
Fire Alarm 1 ₱ 230 ₱ 230
CCTV Camera 2 ₱ 573 ₱ 1,146
Radio 1 ₱ 300 ₱ 300
TOTAL ₱38,304 ₱57,277

Name Function
Computer Set

A computer is a device that can be

instructed to carry out arbitrary
sequences of arithmetic or logical
operations automatically.

38
3-in-1 Printer
A machine for printing text or
pictures onto paper, especially one
linked to a computer.

Air Condition

A machine that cools a room,

building or vehicle.

Exhaust Fan
Moves air out of an enclosure.

Electric Fan
A fan is a machine used to create
flow within a fluid, typically a gas
such as air.

39
 Telephone
A system that converts acoustic
vibrations to electrical signals in
order to transmit sound, typically
voices, over a distance using wire or
radio.

Water Dispenser
A water cooler or water dispenser is
a device that cools and
dispenses water.

Fire Extinguisher
A portable device that discharges a
jet of water, foam, gas, or other
material to extinguish a fire.

Fire Alarm
A device making a loud noise that
gives warning of a fire.

40
 CCTV Cameras
CCTV (closed-circuit television) is a
TV system in which signals are not
publicly distributed but are
monitored, primarily for surveillance
and security purposes.

Radio
The transmission and reception of
electromagnetic waves of radio
frequency, especially those carrying
sound messages.

Furniture and Fixtures

A furniture is any large movable equipment, such as tables and chairs, used to

make a house, office, or other space suitable for living or working. Fixtures are

something securely, and usually permanently, attached or appended, as to a house,

apartment building, etc.

Table 12
Furniture and Fixtures
Items Quantity Cost/Unit Total Cost
Office Table 2 ₱ 2,899 ₱ 5,798
Office Chair 3 ₱ 1,617 ₱ 4,851
Monobloc Chair 5 ₱ 150 ₱ 750
Filling Cabinet with Vault 1 ₱ 8,587 ₱ 8,587
Locker 1 ₱ 3,500 ₱ 3,500
Desk 1 ₱ 500 ₱ 500
Shelves & Cabinet 3 ₱ 5,000 ₱ 15,000
Total ₱ 22,253 ₱ 38,986

41
 Name Function

Office Table

A desk or bureau is a piece of

furniture with a flat table-style work
surface used in a school, office,
home or the like for academic,
professional or domestic activities
such as reading, writing, or using
equipment such as a computer.

Office Chair

It is usually a swivel chair, with a set

of wheels for mobility and adjustable
height.

Monobloc Chair

The Monobloc chair is a lightweight

stackable polypropylene chair, often
described as the world's most
common plastic chair.

Filing Cabinet with Vault

A piece of office furniture usually
used to store paper documents in file
folders.

42
Locker
A small, usually narrow storage
compartment

Desk
A piece of furniture with a flat or
sloped surface and typically with
drawers, at which one can read,
write, or do other work.

Shelves

A thin slab of wood, metal, etc., fixe

d horizontally to a wall or in a
frame, for supporting objects.

Cabinet

A piece of furniture with shelves or

drawers that is used for storing
useful things or showing decorative
things.

43
Office Supplies

Office supplies are consumables and equipment regularly used in offices by

businesses and other organizations.

Table 13
Office Supplies
Items Quantity Cost/Unit Total Amt.
Record Book 2 ₱ 45 ₱ 90
Time Card 1 pack (50pcs) ₱ 119 ₱ 119
Ball Pen 20 ₱ 5 ₱ 100
Pencil 10 ₱ 5 ₱ 50
Marker 3 ₱ 40 ₱ 120
Sharpener 1 ₱ 150 ₱ 150
Stapler 2 ₱ 64 ₱ 128
Stapler Wire 5 ₱ 7 ₱ 35
Puncher 1 ₱ 140 ₱ 140
Paper Clip 2box (100pcs) ₱ 8 ₱ 16
Fastener 3box (100pcs) ₱ 25 ₱ 75
Scissors 2 ₱ 35 ₱ 70
Folders 40 ₱ 30 ₱ 120
Bond Paper (Short) 3 reams ₱ 135 ₱ 405
Bond Paper (Long) 2 reams ₱ 150 ₱ 300
Tape Dispenser 2 ₱ 40 ₱ 80
Tape (2 inches) 10 ₱ 23 ₱ 230
Tape ( 1/2 inch) 10 ₱ 13 ₱ 130
Total ₱ 1,034 ₱ 2,358

Name Function

Record Book
An employment record book is an
official personal document recording
the employment status of its owner
over time.

44
Time Card
The time cards stamped by time
clocks can serve as a timesheet or
provide the data to fill one.

Ball Pen
A ballpoint pen, also known as a
biro, or ball pen, is a pen that
dispenses ink over a metal ball at its
point.

Pencil
Pencils are used for both writing and
drawing and result in durable
markings.

Marker

A felt-tipped pen used for drawing

and/or coloring.

45
 Sharpener
A device for sharpening a pencil's
writing point by shaving away its
worn surface.

Stapler
A stapler is a mechanical device that
joins pages of paper or similar
material by driving a thin metal
staple through the sheets and folding
the ends.

Staple Wire
A piece of bent metal or wire pushed
through something or clipped over it
as a fastening, in particular.

Puncher
A tool for making holes or
indentations.

46
Paper Clip
An instrument used to hold sheets of
paper together, usually made of steel
wire bent to a looped shape.

Fastener
Fasteners are used to create non-
permanent joints; that is, joints that
can be removed or dismantled
without damaging the joining
components.

Scissors
Scissors are used for cutting various
thin materials, such as paper,
cardboard, metal foil, cloth, rope,
and wire.

Folders
A digital folder has the same purpose
as a physical folder – to store
documents.

47
 Bond Papers
It is used for letterheads, other
stationery and as paper for electronic
printers.

Tape Dispenser
A tape dispenser is an object that
holds a roll of tape and has a
mechanism at one end to shear the
tape.

Tape
A brand name for various transparent
or semitransparent adhesive tapes
made chiefly of cellulose acetate or
cellophane, for sealing, attaching,
mending, etc.

Sanitary Supplies

Sanitary means concerned with keeping things clean and healthy.

Sanitary conditions are appalling. The vast majority live in tin shacks without electricity,

clean water or sanitary facilities.

48
 Table 14
Sanitary Supplies
Items Quantity Cost/Unit Total Amt.
Trashcan 3 ₱ 84 ₱ 252
Mop 1 ₱ 69 ₱ 69
Plunger 1 ₱ 25 ₱ 25
Pail 1 ₱ 37 ₱ 37
Dipper 1 ₱ 15 ₱ 15
Doormat 2 ₱ 50 ₱ 100
Scrub Brush 1 ₱ 19 ₱ 19
Besom with Dust Pan 1 ₱ 113 ₱ 113
Total ₱ 420 ₱ 630

Name Function

Trashcan
A container for the disposal of dry
waste matter.

Mop
An implement consisting of a sponge
or a bundle of thick loose strings
attached to a handle, used for wiping
floors or other surfaces.

49
Plunger
A tool used to clear blockages in
drains and pipes. It consists of a
rubber suction cup with an attached
stick (shaft), usually made of wood
or plastic.

Pail
A usually cylindrical container with
a handle.

Dipper
A hygiene tool primarily for anal
cleansing, bathing, and cleaning the
floor of the bathroom.

Doormat
A mat placed in a doorway, on which
people can wipe their shoes on
entering a building.

50
 Scrub Brush

A scrubbing brush for cleaning

toilets.

Besom with Dust Pan

A dustpan, the small version of

which is also known as a "half brush
and shovel", is a cleaning utensil.
The dustpan alone is commonly used
in combination with a broom or long
brush. The small dustpan may appear
to be a type of flat scoop.

Delivery Equipment

A long term asset account containing the cost of delivery equipment acquired by a

company and used in its business.

Table 15
Delivery Equipment

Items Quantity Cost/Unit Total Amt.

Rusco 1 ₱ 30,000 ₱ 30,000
Total ₱ 30,000 ₱ 30,000

51
Utilities

Utility cost is the cost consumed in a reporting period related to the following

types of expenditures: Electricity, Heat (gas) and Water.

Electricity

The business will be using MERALCO as the source of electricity. The electric

bill will be paid monthly and costs Php 14,000.00.

Water

The business will be using Laguna Waters as the source of water supply. The

water bill will be paid monthly and costs Php 1,000.00.

Telephone and Internet

The business will be using PLDT HOME DSL as the source of internet and

telephone communication and will be paid monthly and costs Php 999.00.

Repairs and Maintenance

The machineries and equipment that the business will use are designed to survive

a number of normal breakdowns and parts replacements. Some parts, like one of the gears

that spins the mixer, are even designed to wear over time and/or fail under stress. And

because of the longevity of the equipment, almost all servicing and repairs can be done

on the factory site by the proponents themselves.

52
Direct Labor Requirements

To support the production capacity of the business the proponents decided to

employ two (2) personnel composed of 1 man and 1 woman. They will be divided into

different functions and will work together to finish the number of soap required to be

produced in a day. Men will perform the first phase of the manufacturing process which

includes: preparation, melting, mixing, molding and hardening of the soap. Then the two

women will be doing the second phase of the process such the weighing, packaging and

quality control. During the first phase women will be assisting men and during the second

phase men will help the women and vice-versa. The workers will be working for 8 hours

from 8AM-4PM and will work from Monday to Saturday.

Production Cost

Production cost refers to the cost incurred by a business when manufacturing a

good or providing a service. Production costs include a variety of expenses including, but

not limited to, labor, raw materials, consumable manufacturing supplies and general

overhead.

Direct Raw Materials Total Cost

Tuba-tuba Leaf Extract ₱ 287,536
Clear Glycerin ₱ 316,800
Green Tea Essential Oil ₱ 83,160
Food Coloring ₱ 20,880
Total ₱ 708,376
Direct Labor ₱ 403,200
Overhead Expense
Rent ₱ 30,000
Utilities ₱ 134,391.60
Depreciation ₱ 22,721.13
Total ₱ 187,112.73
Total Production Cost ₱ 1,298,688.73
53
54
Marketing Research

Marketing research is the process or set of processes that links the producers,

customers, and end users to the marketer through information used to identify and define

marketing opportunities and problems; generate, refine, and evaluate marketing actions;

monitor marketing performance; and improve understanding of marketing as a process.

The study aims to know the acceptability of Tuba-tuba Leaf Soap in the residents of

Barangay Balibago, Santa Rosa, Laguna. The answers of the respondents are tallied and

presented through the use of tables.

Methodology

To make this study possible, the proponents used the following:

Research Design: The proponents used the Descriptive Type of research where it

seeks to describe issues related to the future demand of a particular product. It tries to

determine the number of population uses the product or predict future demand.

Research Locale: The research is conducted on the vicinity of Barangay Balibago.

The study was conducted from July to August 2017.

Data Gathering Tool: The proponents gathered data from primary data utilized by

survey questionnaires and secondary data available on the internet, books and other

documents available in Balibago Barangay Hall.

Population of the Study: According to the City Health Office II, the total

population of Barangay Balibago is 18,371 as of June 2017.

55
 Treatment of Data: The proponent used the Sloven’s Formula to determine the

number of the respondents needed for the study. The proponents also used the Random

Sampling Technique on choosing its respondents.

Sloven’s Formula

𝑵
n = (𝟏+𝑵𝒆)^𝟐

N=Total Population

18,371 / 46.9275 n= sample size

n ≥ 391 respondents e= margin of error (5%)

Research Procedure: The researchers performed the following procedures to make

this study possible: First, a general data gathering wherein the researchers gathered the

needed data from the primary and secondary sources of data. Second, is the presentation

of the result, analysis and interpretation. And lastly the researchers gave their conclusion

of the result.

Presentation of the Result: The tabulated result of the Marketing Research is

shown on Appendix C.

The survey reveals that the majority of the respondents are female that accounts

for the total of 61% while the remaining 39% are composed of male respondents.

56
 Based on the survey most of the respondents are 18-22 years old with the

percentage of 27% followed by those who are in 23-27 years age bracket which is 24% of

the total population. Respondents who are 28-32 years old accounts for 20% and

respondents below 18 make up 16%. The remaining 13% and 10% are composed of

respondents who are 33-37, 38-42 and 43-47 years old respectively.

The survey reveals that 37% of the total population has 3-5 members of the family

per household and 32% has 6-8 members, the respondents who have 9-11 members per

household accounts for 18% of the population while the remaining 13% have 12 and

above members of the family per household.

Based on the survey more than half of the respondents frequently buy soap every

week which accounts for 52% of the total population. 34% often buy a soap every 4

weeks and 14% of the respondents to purchase a soap every 2 weeks, none of the

respondents buy soap every 5 weeks and above.

The survey reveals that 62% of the total respondents buy 1 soap per purchase and

29% buy 2 soaps every purchase. While only 9% buy three or more soap per purchase.

According to the survey, 53% of the total respondents read product labels before

purchasing while 47% does not.

Conforming to the survey the respondents preferred soap price. 53% of the total

respondents prefer P 40-50, 28% said P 51-60, 13% is P 61-70 and only 6% said P 70-

above.

57
 The survey reveals the preferred location for purchase of the Tuba-tuba Leaf Soap

by the respondents. A total of 46% said at a retail store, 29% at supermarkets, 18% at a

drugstore and 7% said at online shops.

Based on the survey, most of the respondent’s uses Safeguard with 73% followed

by the respondents using Silka with 8%, respondents using Dove soap with 7% and 12%

are those respondents using other brands.

According to the survey the results for the respondents’ possibility on buying a

new brand of soap is 55% while the remaining 45% is contented with the brand they are

using.

According to the survey, special promos affect the buying decision of the

consumers. 62% of the total respondents said yes while only 38% said no.

The survey reveals the appearance satisfaction of the respondents toward Tuba-

Tuba Leaf Soap. 61% are satisfied with Tuba-Tuba Leaf Soaps appearance while 39% is

not satisfied.

Conforming to the survey, 65% are satisfied with Tuba-Tuba Leaf Soaps color

while 35% is not satisfied.

Based on the survey, 72% said that they were satisfied with Tuba-Tuba Leaf

Soaps scent while 28% said that they are not satisfied.

The survey reveals that Table 15 shows the respondents’ expected benefits from

the Tuba-Tuba Leaf Soap. 41% said they expect healing effects with Tuba-Tuba Leaf

Soap, 37% expects cleanliness, 12% expects moisturizing and 10% for anti-bacterial.

58
 According to the survey, 70% of the respondents find the packaging of Tuba-tuba

Leaf soap appealing while the remaining 30% find it not appealing.

The survey reveals that more than half of the total population wants to try and

willing to purchase the Tuba-Tuba Leaf Soap while only some do not consider buying the

soap.

Conclusion of the Research

The proponents found out that:

1. Majority of the respondents have 3-5 members of family per household.

2. Most of the respondents frequently purchase soap every 3 weeks.

3. Most of them buy one piece of soap at a time.

4. Most of respondents read product label.

5. The preferred price of respondents is P 40-50.

6. Respondents want to buy a soap in the following; retail store, supermarket,

drugstore and online shop.

7. Special promos affects the buying decision of the respondents.

8. Respondents consider buying or trying other brand.

9. The respondents are satisfied with the appearance, color and scent of the Tuba-

Tuba Leaf Soap.

10. Healing effects, moisturizing, cleanliness and anti-bacterial properties are the

benefits that the respondents think they will get after using Tuba-Tuba Leaf Soap.

11. Respondents are willing to buy Tuba-Tuba Leaf Soap.

59
 12. Tuba-Tuba Leaf is acceptable to the people of Barangay Balibago, Santa Rosa,

Laguna.

Target Market

The proponents would like to capture a specific target segment out of Barangay

Balibago’s population that assumed to trust and would like to use Tuba-tuba Leaf soap on

their skin. The following are the target market for the product:

1. Both men and women ages 18-45 years old.

2. Working and non-working persons.

3. Residents of Balibago and nearby areas.

4. People who are using bar soap on taking a bath.

5. People with or without body odor and other skin problems.

6. People with a P 45-65.00 budget for a bathing soap.

7. People who want to be confident with their bare skin.

8. Hotels and resort that gives free soap to their clients.

Demand Schedule

Demand is the quantity of a good or service that consumers and businesses are

willing and able to buy at a given price in a given time period. Market demand is the sum

of the individual demand for a product from buyers in the market. While Demand

schedule is a tabulation of the quantity of a good that all consumers in a market will

60
purchase at any given price. Generally, there is an inverse relationship between the price

and the quantity demanded. The graphical representation of a demand schedule is called

a demand curve. The demand for a bathing soap is shown below.

Table 16
Demand Schedule
Year Population on (no. of household) Demand (per pcs)
2017 6,239 149,736
2018 6,264 152,736
2019 6,491 155,784
2020 6,627 158,904
2021 6,753 162,072
Total 779,232

Assumptions:

1. Only 90% of the total population uses bar soap, the remaining percentage uses

liquid soap and others.

2. There are 5 members of the family per household.

3. The household consumes 100 grams of bar soap every two weeks.

4. To compute for the demand, the proponents used the formula a=n x g x 2 x 12.

The computation for the demand schedule is shown below.

n=no. of households a = n x g x 2 x 12

g=average grams consumed =6, 239 x 100 x 2 x 12

2= frequency of soap purchase a month =14, 973, 600 grams / 100

12=months to make a year = 149, 736 pieces

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 5. Every year the population of Barangay Balibago increases by 2%. With the

increase in population the demand also increases.

As indicated above, to get the demand multiply the total number of households to

100 grams which is the average grams consumed by the households then multiply to 2 or

the frequency of buying soap every month and lastly multiply it to 12 months the answer

will be the aggregate demand for the year.

Supply Schedule

Supply is the total amount of good or service available for purchase at any

specified price. A supply schedule is a tabular depiction of the relationship between price

and quantity supplied, represented graphically as a supply curve.

Table 17
Supply of Tuba-tuba Leaf Soap
Year Grams Pieces
2017 7,200,000 72,000
2018 7,344,000 73,440
2019 7,632,000 76,320
2020 8,066,880 80,669
2021 8,228,218 82,282
Total 384,711

Assumptions:

1. The company will produce 25 kilograms of mixture or equivalent to 250 pieces of

Tuba-tuba Leaf Soap per day.

2. The computation for the supply on the first year is shown below.

62
 a= assumptions w= no. of weeks s= a x d x w x m

d= working days m=no. of months =2500 x 6 x 4 x 12

= 72 000 pieces of Tuba-tuba Leaf Soap for the first year

3. There is a 2% increase in the production on the following years.

4. There is no fear for possible supply shortage because the supply of raw materials

are constant.

As indicated, the company will produce 25 kilograms of mixture to make the soap

or 250 pieces a day and will multiply to six days as the working days for production

which is equal to 1,500 pieces per week. Then multiply it with 4 weeks that will be equal

to 6,000 pieces per month. After getting the no. of pieces per month multiply it to 12

months and the answer will be 72,000 pieces of Tuba-tuba Leaf Soap on the first year. To

get the succeeding year multiply the pieces of soap on the first year to get the number of

pieces of Tuba-tuba soap for the following year.

Table 18
Supply of Competitors
Year Grams Pieces
2017 7,773,600 77,736
2018 7,929,600 79,296
2019 7,946,400 79,464
2020 7,823,500 78,235
2021 7,979,000 79,790
Total 394,521

Competitors pose a major threat in the business. Thus, it is necessary to consider

them before entering a particular industry. The supply is the quantity of goods and

services that the competitors are willing to produce in a particular time and place. The

supply of Tuba-tuba Leaf Soaps competitors are shown above.

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Demand and Supply Analysis

In microeconomics, supply and demand is an economic model of price

determination in a market. It postulates that in a competitive market, the unit price for a

particular good, or other traded item such as labor or liquid financial assets, will vary

until it settles at a point where the quantity demanded (at the current price) will equal the

quantity supplied (at the current price), resulting in an economic equilibrium for price and

quantity transacted. Supply and demand are both key to economic activity.

The two influences each other which makes an impact to the prices of consumer

goods and services within an economy. Supply is the amount of a particular good or

service available at a given time to consumers. Consumers, expressing interest in

purchasing a good or service, exhaust available supply, generally resulting in an increase

in demand.

Demand is a measurement of consumer desire and consumer spending on a

particular good or service at a specific price. As demand increases, available supply

decreases and an increased supply may satiate available demand at that price. Prices may

fall if supply continues to grow. If supply decreases, prices may continue to increase.

Supply and demand have an important relationship that determines the prices of most

goods and services. Many companies analyze this market relationship while making

strategic production decisions.

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 Table 19
Demand and Supply Analysis
Year Demand (per piece) Supply (per piece) Gap (per piece)
2017 149,736 72,000 77,736
2018 152,736 73,440 79,296
2019 155,784 76,320 79,464
2020 158,904 80,669 78,235
2021 162,072 82,282 79,790

Table 19 shows that there is a demand for the Tuba-tuba Leaf Soap and its

increases by 2% every year. The increase in demand indicates the willingness of the

people to purchase the product. While the supply of soap is consistent because the

production capacity of the other business can handle the demand for the product and there

is no fear of possible scarcity of the raw materials. As the demand grows the supply also

grows to be able to meet the demand for the product. The gap is what the company will

bridge up. The company will cater to it by offering the product, Tuba-tuba Leaf Soap in

the market.

Projected Sales

Projected Sales is the amount of revenue a company expects to earn at some point

in the future. It's a prediction that is synonymous with a sales forecast. Both help

determine the health of a company and whether sales will trend upward or downward.

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 Table 20
Projected Sales
Year Projected Sales
2017 ₱ 2,571,428.57
2018 ₱ 3,085,714.29
2019 ₱ 3,188,571.43
2020 ₱ 3,209,142.86
2021 ₱ 3,213,257.14

Table 20 shows that the projected sales of Tuba-tuba Leaf Soap for five

consecutive years. It show that the sales of the product increases by 2% every year. It has

an average sales of P 3,053,622.86. The increase in sales indicates that the product is

being patronized by the people.

Market Share

Market share represents the percentage of an industry or market's total sales that is

earned by a particular company over a specified time period. Market share is calculated

by taking the company's sales over the period and dividing it by the total sales of the

industry over the same period.

0.8 1.02
Market Share
0.89 4.47
1.02 0.73
1.79 10.65 7.15 Tuba Leaf
6.25
Silka
Safeguard
65.33
Others
Dove

Figure 10. Market Share

66
 Hergia had a total revenues of P 2,571,428.57 on its first year of operation and

assuming that the local soap industry had total revenues of P 24,143,102 during the same

year. To get the market share, the proponents calculate the company's market share by

dividing P 2,571,428.57 by P 22,143,102. Then multiply by 100%. The company’s

market share is 10.65% for the first year.

SWOT Analysis

SWOT analysis is a process that identifies an organization's strengths,

weaknesses, opportunities and threats. Specifically, SWOT is a basic, analytical

framework that assesses what an entity can and cannot do, for factors both internal as

well as external. Once the SWOT factors are identified, decision makers should be able to

better ascertain if the project or goal is worth pursuing and what is required to make it

successful. It is usually presented as a square with each of the four areas making up one

quadrant. This visual arrangement of the information provides a quick overview of the

company’s position. Performing a SWOT analysis helps one thoroughly understand his or

her business by presenting a viewpoint of the company's operations from a different

angle. For new businesses, this analysis is critical to the organization's planning process.

It can, however, be performed at any time. A company's unique “SWOTs,” as they are

often referred to, will help get a new business on the right track.

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 Table 20
SWOT Analysis
Strength Weakness

 New and unique product  Technological obsolesce

 Good quality product  Lack of brand awareness in some
 Appealing packaging area
 Strategic location of the business
 Excellent sales staff
 Good customer service
Strong employee relation
Opportunity Threat
 Growing demand  Increase in raw materials
 Widening of consumer base  Government policies
 Potential of developing market  Taxes and other cost
Business expansion  Competition

Competitor’s Comparative Analysis

Different commercial soaps have chemicals that people are not aware that they are

using on a daily basis. A lot of these chemicals can be drying and may lead to skin

allergies. Because of that, natural soaps are slowly gaining popularity because of its

biodegradability, great skin benefits and no harsh chemicals that can irritate the skin. The

quality of the Tuba-tuba Leaf Soap and its main competitive advantages and the benefits

of using it is shown below.

A competitive advantage is what makes the business better than the competition

in the customers' minds.

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 Table 21
Advantage of Tuba-tuba Leaf Soap
TUBA TUBA LEAFSOAP Chemical or Commercial Soap
1. All-natural & All-organic soap 1. Made from artificial ingredients
2. Lye-free soap 2. Lye soap
3. Has natural scent/aroma 3. has conventional and synthetic fragrance
4. Hypo-allergenic
5. Has non-drying formula and non-sticky 4. often create negative reaction
5. Clog the skin

As shown above the competitive edge of Tuba-tuba Leaf Soap is its health

benefits. It is all-natural and all-organic soap that is free from harmful chemicals. It is

Hypoallergenic and applicable to all skin types. Tuba-tuba Leaf Soap can also use in the

face and in the body. It is effective for removing acne, blackheads, dermatitis, eczema,

scabies and body odor. Since it is an herbal soap, it is non-sticky and non-drying. Unlike

chemical soap available in the market that clogs the skin and hamper the skin from

breathing.

Marketing Plan

Hergia Skin Care Company’s marketing strategy is based on the following:

Product Strategy -It has a unique and superior product the Tuba-tuba Leaf soap.

-It has an appealing packaging that can catch customer’s attention.

-The name of the product is simple and easy to remember

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Pricing Strategy -The price of the product is P 50.00 for retail and P 48.00 for

wholesale more affordable than other brands.

Distribution strategy -The product is available on drugstore, malls, supermarket and etc.

Promotional strategy -Word of mouth advertisement, flyers and etc.

Product

The need for bathing soap can be satisfy by using Tuba-Tuba Leaf Soap. It can be

simultaneously functional to meet the following needs: Physical (to smell good and

eliminate common skin problems) Psychological (to feel better about your smell and

skin) and Social (to be confident when talking with other people etc.) Tuba-tuba Leaf

Soap aims to empower Filipinos by helping them to be confident by having a beautiful

skin. The name of the product is derived from the main ingredient of the soap which is

Tuba-tuba, the proponents chose to have a simple name that is very easy to remember by

the customers. Tuba-tuba Leaf Soap is all-natural herbal soap made from fresh Tuba-tuba

leaves and Green Tea oil that nourishes the skin. Tuba-tuba Leaf Soap is effective in

eliminating body odor causing germs and removes acne, blackheads, eczema, dermatitis,

pruritic lesions and other skin problems. It has non- drying and hypoallergenic formula

and applicable for all skin types. Since it has no harmful chemicals, the good thing about

Tuba-tuba Leaf Soap is very safe to use. Tuba-tuba Leaf Soap is shown below.

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 Figure 11. Tuba-tuba Leaf Soap

Product Logo and Meaning

Tuba-tuba Leaf Soap will be using the logo shown below to be the representation

of the product.

Figure 12. Product Logo

The Logo of Tuba-tuba Leaf Soap is a combination of word mark and icon logo.

The Tuba-tuba and its leaf is placed on the upper and lower part of the logo these

represents the main ingredient of the product which is Tuba-tuba Leaves. The name of

the product is put at the center part of the circle which likes the equator. This signifies the

direct commitment of the product to the customer just like the direct sunlight that

countries near the equator receive from the sun. The flower background depicts nature

because it is believed that Mother Nature laughs through the flowers. The green color of

Tuba-tuba is chosen not just because it is natural color of the plant but also represent

71
nature. Yellow is the color of joy and celebration and chosen because of the main goal of

the product which is to celebrate the beauty of everyone and joy for their skin.

Product’s Tagline

The proponents chose to use the tagline “Confidence in a Bar”. It is short but very

appealing. The tagline denotes the effect of Tuba-tuba Leaf Soap which is to build

confidence to anyone who are using the soap. The product eliminates body odor, acne,

blackheads and other skin problems that people want shy for. Using Tuba-tuba Leaf Soap

can boost the confidence of customer because they have no more worry about their skin

problems. The proponents believe that confidence can start by having an odor free and

beautiful skin.

Packaging

The Tuba-tuba Leaf Soap has an appealing packaging that can attract more

customers. The packaging of Tuba-Tuba Leaf soap is made from biodegradable carton

box to protect the soap against extreme weather conditions and unfavorable damage. The

product label is very appealing and informative it contains the product logo, manufacturer

and contact information, direction of use, manufacturing date, grams and others. The

English language is used in the label because many people know how to understand this

language. The font size is 5 and font color is black and green. The proponents make sure

that the product label is readable and easy to understand.

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 Figure 13. Packaging

Price

Price is a determinant of relative quality of a product with the rising of income.

More people nowadays look more on the quality rather than the price. The proponents

decided to sell its soap at the amount of P50.00for retail and P 48.00 for wholesale. The

price of the soap is the reflection of the company’s mission on providing good quality

products in an affordable price. Compared to other brands available in the market the

price of Tuba-tuba Leaf Soap is comparatively more affordable without compromising

the quality of the product. The proponents used the cost plus pricing. Cost plus approach

usually starts with standard cost of the product: an estimate of total direct cost (labor,

materials and components) divided by the assumed number of product to be

manufactured. The computation for the price of Tuba-tuba Leaf Soap is shown below.

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Pricing

Direct Cost
Tuba-tuba Leaves Extract P 6.50
Clear Glycerin P 7.00
Essential Oil P 0.75
Food Coloring P 0.25
Total Direct Cost P14.50
Indirect Cost
Packaging P 3.00
Gas P 0.50
Water P 0.25
Electricity P 0.50
Transportation P 0.75
Total Indirect Cost P 5.00
Product Cost
Total Direct Cost P14.50
Add Total Indirect Cost P 5.00
Add Direct Labor Cost P 4.18
Product Cost P23.68
Selling Cost
Product Cost P23.68
Add: Mark Up (47%) P20.97
Total Cost per piece P44.64
Vat (12%) P 5. 35
Selling cost per piece P50. 00

Retail Price P 50. 00

Whole Sale P 48.00

Place (Distribution)

The proponents will distribute Tuba-Tuba Leaf Soap through:

a) 0-level of distribution or manufacturer-customer distribution. Since the

company is just a start-up business, it will focus first on its local market.

The proponents chose to use the direct distribution to stay closer to

customer and encourage them to engage with the brand. It can also give

greater control over service experience.

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 Manufacturer Customers

Figure 14. 0- Level of Distribution

b) 1-level of distribution or manufacturer-retailer-customer to reach out its

target market and to fulfill its promise on bringing good quality of soap

closer to the customer, Tuba-Tuba Leaf Soap will be available on retail

outlets including drugstore, malls, health and beauty boutiques and

supermarket within Barangay Balibago and nearby barangays. The

product will be distributed to its outlets every month using land

transportation.

Manufacturer Retailer Customers

Figure 15. 1- Level of Distribution

c) E-Commerce- the proponents also decided to enter E-Commerce platforms

to reach other audiences outside the local market. The product will be

available on different setting online site like OLX, etc. The business will

also accept orders in the internet through its official website.

d) Direct Selling- includes sales made through the party plan, one-on-one

demonstrations, and other personal contact arrangements as well as

internet sales.

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Promotion

As a starting business, the proponents will invest in promotional tools and allocate

right amount of budget for advertisement to raise brand awareness in the target location

and nearby area.

 Advertisement

Refers to any paid form of non-personal presentation and promotion of ideas, goods

and service by an identified sponsor.

a) Store Signage- this will be displayed above the store to serve as the landmark of

the business and help the customers easily find and recognized the store.

Figure 16. Store Signage

b) Tarpaulin Posters- the proponents will produce tarpaulins that will be displayed in

some key areas in Barangay Balibago.

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 Figure 17. Tarpaulin Posters

c) Stickers- are type of label, a piece of printed paper, plastic, or other material with

pressure sensitive adhesive on one side. The proponents will use stickers to

promote Tuba-tuba Leaf Soap.

Figure 18. Stickers

d) Business Cards- these bare small cards are given to prospects as a formal

introduction of the company or individual. This is used by the general managers

and will give it to their suppliers and customers during formal gatherings and

other events.

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 Figure 19. Business Cards

e) Online Advertisement- since it is becoming more popular and a trend in the

business industry, the proponents will create Facebook page that contains

information about the products. This Facebook page and other social media

advertisement can reach other market without allocating big amount of budget.

Figure 20. Online Advertisement

 Sales Promotion

It is a short-term promotion that persuades customers to purchase the product. It is

designed to stimulate sales.

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a) Sampling- the business will be giving away 100 pieces of 50 grams of Tuba-

tuba Leaf Soap for free to the first 100 person who will be visiting the store on

its grand opening.

Figure 21. Sampling

b) Premium- customers can avail premium cards and start collecting points.

Every single purchase receipt is equivalent to one point. If a retail customer

collected a total of 6 points, he is entitled to win a limited edition round fan or

eco bag. If he gathered a total of 12 points, he will win an umbrella. For

wholesale customers 6 points is equivalent to 1 round fan and an umbrella

while, 12 points is equal to 1 eco bag and 1 tumbler. A customer who already

avail its 6-point prize is no longer capable of joining the 12-point prize. The

proponents chose these premium gifts because it is convenient to use and can

bring anywhere that can also help to advertise the product.

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 Figure 22. Premium Card

Figure 23. Premium Gifts

c) Trade Shows– the proponents are interested on joining in local trade shows

hosted by the local government unit of Barangay Balibago and other

barangays. The business can also participate in Christmas or festivities bazaar

80
 in the area. This will help the business to get closer in its customers during a

specific time and increase in brand awareness of the product.

Figure 24. Booth

 Publicity

a) Sponsorship- The business will accept sponsorship to any public and private

organization. It will improve the exposure of the business to different group of

people. The business can offer P 500 worth of gift certificate of Tuba-tuba leaf

soap depending on the agreement of the both parties.

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 Figure 25. Gift Certificate

 Direct Selling

Direct sellers are independent consultants, not employees. Products are sold

primarily through parties, hosted in private homes where you gather a bunch of your

friends or you get people you know to invite their friends. One-on-one selling is also

an option. The business encourages moms at home to enter the business and be part of

the company as direct sellers for them to earn money while helping the business to

grow.

Figure 26. Direct Seller Ad

82
83
4. Production volume was constant.

5. 60% of sales were on account while the remaining 40% of sales were on cash.

6. 70% are assumed to be collected in the year when sales take place, and the

remaining would be collected in the subsequent year.

7. Utilities and Rent Expense were allocated 70% to operations and 30% to

administration.

8. 90% of the available raw materials were used every year.

9. Allowance on bad debts was based on 5% of the Accounts Receivable, End.

10. Office Supplies Expense was 80% of the available Office Supplies.

11. Sanitary Supplies are bought semi-annually.

12. All purchases of raw materials were on account.

13. 80% of the Accounts Payable are paid in the year of sale, and 20% in the

subsequent year.

14. Drawing of the partners’ amounted to 75,000 for the first two (2) years.

15. The profit and loss ratio was 30% for general partners and 17.5% for limited

partners.

84