DESCRIPTION OF THE PROJECT Tsineppin is a distributor of beaded-art slippers in Boracay Island.

The head office is located in Mangayad, Manoc-manoc, Malay, Antique, Philippines.

MARKET PROJECTIONS

11.7%

Yes 88.3% No

TARGET MARKETS Upper-Middle Class- white collar Lower-Middle Class- working class/lower income

HIGHLIGHTS *Stores* Stores interview offer variety of products. As the result shows, products mostly offered are slippers. It is our choice to interview stores which offer slippers. But the slippers offered in those stores are only few in number, very plain and do not have much designs. As customers of Boracay stores, there is an almost equal ratio among the foreign & local tourist and foreign & local residents. Peak season is during summer, from December to May. Almost of the stores are willing to introduce new products especially those with creative designs. The demand shows 90% of the market willingness to try new products.

Many customers are looking for slippers and t-shirts. Since, almost of the stores offer t-shirts which can be seen everywhere and it is available with discounts naturally customers will look for those most. But based on the results, even there is only limited supply of slippers, most of consumers look for these. Based on observations, many stores order their products directly from Manila. It is a burden for them to get their products from Manila personally, at this point; many stores will grab the opportunity that would have suppliers that will personally to them the products. This provides convenience to store owners. Most of the stores purchase order one or two times a month and willing to spend Php50,000 for each order. Most of the orders are in cash basis. *Foreign Tourists, Local Tourists, Residents* We found out that 88.3% of the respondents have the intention and capacity to buy souvenir items. So the 88.3% is our market demand. Our product, beaded-art slippers are considered as souvenir item since they would be sold together with the other souvenir items. We define souvenirs as the items you bought as a representation of the place you had been. Souvenirs are the items that you brought as a remembrance of the place. We can not categorize our products to the existing souvenir items. Our method in estimating demand will be different form the other methods being used by the others. Well base our demand on the characteristics of our product, price, quality, the origin or an element of novelty in its appearance. We also found out that respondents in Boracay prefer designs over price and quality. They are not also brand conscious people. Our survey shows that 42.3% would love to see the designs on the existing products there. We can also conclude that size 7 of feet is the most common among those people. Also 76% of the people used rubber slippers. Into that figures, we can conclude that they need slip wears on their way to the Island. The existing products there are the t-shirts (as the most commonly seen), slippers and accessories. We consider them all as our competitors. The existing slippers there are plain and common. ASSUMPTIONS Tsineppin is the leading distributor of beaded-art rubber slippers. We are the trend-setter. Tsineppin provides customers satisfaction. We cater the entire 90% of the stores in Boracay Island. Tsineppin conducts free trainings, seminars and open job opportunities to the residents of Boracay. We gather accurate information about consumers behavior through direct access to the store owners/managers. LIMITATIONS

 We only set product line in Boracay Island. After 2-3 years of operation, we are going to introduce our products to other parts of the country. Job opportunities are limited, on only offered to the Boracay community. We prefer to use cash on delivery but are also grant consignment if the worth of purchases exceeds at the amount on Php50,000.00. We have limited personnel. We cant afford to have TV commercials, its quite expensive.

RESEARCH METHODOLOGY Survey Questionnaires Interview Secondary Materials (internet, books and journals)

1.0 EXECUTIVE SUMMARY Tsineppin is a designer, manufacturer and a distributor of unique beaded-art slippers. Tsineppin makes many designs in various categories like native, seaside, floral and crystals. Each pair of slippers is a work of art in itself, very special and unique. Most people will fell that Tsineppin slippers are like nothing else they have ever seen. Tsineppin will be distributing rubber slippers to various stores in Boracay. Tsineppin will also use websites as a channel as well. Tsineppin will achieve fast, significant market penetration through marketing channels, long-range planning and strong management team. By the end of the year, Tsineppin will develop relationships with different footwear stores and will begin to sell some of its products directly to end consumers.

2.0 SITUATION ANALYSIS Tsineppin is a start-up company located in Mangayad, Boracay Island. Marketing will be the key to raise visibility and awareness of Tsineppin and its products. The basic market need is a creative, unique flip-flops.

2.1 MARKET SUMMARY

Tsineppin possesses good information about the market and attributes concerning its target customers. This information will be leveraged to continually who the customers are, their specific needs and Tsineppin can best communicate with them.

TARGET MARKETS Souvenir Shops Foreign Tourists Local Tourists Residents

Table 2.1 TARGET MARKET FORECAST

POTENTIAL CUSTOMERS Souv enir Shops Foreign Tourists Local Tourists Residents TOTAL

GROWTH 1 5% 9% 9% 2.3% 8.9%

YR.1 18 1 7 4,1 06 400,667 5,405 580,196

YR.2 21 1 89,7 7 6 436,7 27 5,529 632,053

YR.3 24 206,856 47 6,032 5,656 688,568

YR.4 28 225,47 3 51 8,87 5 5,7 86 750,162

YR.5 32 245,7 66 565,57 8 5,91 9 817,295

*CAGR 1 5% 9% 9% 2.3% 8.9%

*CAGR- Compound Annual Growth Rate

2.1.1 MARKET DEMOGRAPHICS The profile for the ideal customer consists of the following factors: Geographic Boracay Island is the geographic area. This is due to the enormous population of tourists and most flexible and effective promotion and distribution within. Demographic The total target population is 18 stores and 580,196 tourists and residents. There is an almost equal ratio between: Male and Female customers Ages 15-74, 66% ages 26 to 35

 Middle Class (both upper and lower) Behavior Factors Enjoy spending their discretionary income on souvenirs Consider designs over price in buying souvenirs People who take a vacation twice a year User

2.1.2 MARKET NEEDS Tsineppin is providing its customers with a wide selection of beaded-art slippers. Tsineppin seeks to fulfill the following benefits that are important to its customers. Selection- a wide range of slipper styles and creativity. Competitive Pricing- Tsineppins prices are competitive relative to other stores selling slippers. Quality Craftsmanship- each pair of slipper is hand0made to ensure the durability of products. 2.1.3 MARKET TRENDS Rubber slippers have been part of Filipino culture. People use it all the time, everywhere, inside and outside the house. Today, a unique pair of slippers has been a great necessity for everyone. Even the celebrities and high-profile personalities have been seen wearing flip-flops. With this, Tsineppin will set the trend in the industry by providing creative beaded-art slippers not previously available to customers. After the market was flooded with so many similar, common designs, demand was generated for Tsineppin to produce rubber slippers with unique artful designs offered at a very reasonable cost. 2.1.4 MARKET GROWTH Flip-flops have become part of the factor leverage as much as athletic shoes, jeans and shirts. The growth in flip-flops has been part of a general change in fashion over-all during the past twenty tears, as it has become more casual over all for everyday events. Havianas from Brazil is the most popular brand of slippers in the Philippines. And this year, its growth is almost Php300 million or 500,000 units. And now, there is also a second Tier manufacturing Company who also creates some slippers for the benefit of those people who cant afford to buy Havianas slippers. The younger population that recognizes the aesthetic value of artwork is now demanding slippers to have artistic elements. In essence, it is art that you wear. These trends are helping the industry grow.

SWOT ANALYSIS *Strengths* Innovative and trendy product designers Offers products at a reasonable cost. High-quality products. Competent managers. Highly-motivated employees. Passion for work. Strong relationship with raw material vendors. On-time delivery. Accessibility to stores. Technological skills. *Weaknesses* Struggle in establishing brand awareness among consumers. The struggle to constantly create new designs. Lacks brand equity. *Opportunities* Grow market that, to a large degree is unaware of Tsineppin products. Increase sales opportunities from mail-order customers who use the website to gain information and see examples of Tsineppins artistic ability. The ability to increase the profit margin as variable costs is decreased due to operating efficiencies. Injection of fresh, creative designs in a somewhat stagnant industry. *Threats* Decrease of availability of raw materials due to demand from other industries. Artistic copycats that enter the market and mimic Tsineppins design.

 A slowdown of economy that will have a reduction on individuals discretionary income. COMPETITION Tsineppin will form its market. Well making demand for the beaded-art slippers. Tsineppin will be the number one distributor of rubber slippers in Boracay Island. Although these are already stores offering slippers, Tsineppin will be the only one to offer the most innovative and fashionable beaded-art slippers at a reasonable cost. Those indirect competitors offer a couple of year will also turn out as our customers.

PRODUCT OFFERING Tsineppin beaded-art slippers are offered into various categories. Seaside- such slippers are very unique in design. Added shells onto slippers can not be seen anywhere but in Boracay Island only. Floral- such embellishments of the rubber slippers are designed for the ladies. Slippers emphasized feminity of the users. Native- each pair of slipper is an artwork itself. This promotes Filipino culture and tradition. Crystals- such slippers are designed for sophistication, elegance and grace. KEY TO SUCCESS The key to success are designing and producing slippers that meet the expectation of the market. In addition, Tsineppin must assure total consumer satisfaction. The company must be able to reach the entire market to become profitable and suitable company.

CRITICAL ISSUES As a start-up business, Tsineppin is still in the early stage and we will be facing issues. Establish itself as a primary distributor of beaded-art slippers. To protect the product from imitators and avoid direct competitors To employ well-motivated and hardworking people. To ensure that customers are satisfied with the designs as well as the quality. Monitor sales growth. FINANCIAL OBJECTIVES A 15% increase in productivity. A decrease in variable cost through operating efficiencies.

 Achieve Return on Investments (ROI) within a period of As increase in sales, enough to warrant the hiring of additional people. TARGET MARKET Tsineppin will be focusing only to one group: the Souvenir Stores in Boracay. They will be met through direct communication, meetings and proposals. Through these, long-term relationships will be entered into and stores will become a retail distributor channel of Tsineppin. POSITIONING: COMPETITIVE EDGE Tsineppins competitive dge is that pair of slippers comes with a reasonable bag as packaging. Every product is based on creative, unique designs. While this strategy can be replicated, it is not easy. Creative, unusual designs require skills. And thats what Tsineppin has. Tsineppin will use Customer-Centric Approach. Though it is important for the business make money, we believe that if we treat customers properly, the products will happen as a buy-product of this approach. This approach is effective because it is far cheaper to maintain a happy customer than it is to attract new ones. MARKETING OBJECTIVES Understand current market penetration and potential. To set product line in Boracay Island. To achieve sales growth every year of operation. Create winning product development plans based upon the preferences of high-value targets. Develop an in-depth knowledge of consumers and grow in value through retailers. Identify over/under performing stores and maximize in-store training and promotions. MARKETING STRATEGIES The single objective is to position Tsineppin as an innovative, unique, artistic manufacturer and distributor of beaded-art slippers. The positioning is for the entire Boracay Island, the marketing strategy will seek to create customer awareness regarding unique products offered, develop the customer base, and work toward building a network of store as retailers. The message the Tsineppin will communicate is that Tsineppin are unique and handmade. This message will be first communicated through providing livelihood trainings and programs to the community. Tsineppin will use a three-pronged approach of marketing activities. The first prong is to hold free designing slippers to the community of Manoc-manoc. So that people within the place would be aware of the products. Also performing our social responsibility, this is to provide job opportunities among Manoc-manoc residents.

The second prong to the marketing strategy will be getting Tsineppin products into various stores. This is also includes meeting with buyers and convincing them to stock Tsineppin products. Through this, well be able to establish marketing relationship with those souvenir stores. The third prong is to use of the website which will be a source to disseminate information and increase visibility and process orders. The website will contain catalogs of current production designs and how to contact us. Well also accept comments and suggestions on the net.

MISSION Tsineppins mission is to design and manufacture rubber slippers. The design will innovative, creative and unique. MARKETING MIX Pricing- the pricing scheme will be based on the cost of the raw materials and the amount of time required constructing the piece. Breakdown: cost per slipper Labor Cargo Slipper Beads Bag Printing services 17.00 php 6.00 php 28.00 php 10.00 php 10.00 php 3.00 php 74.00 php Distribution- the products will be distributed via direct selling and through a souvenir items store Advertising and promotion these activities will be accomplished through providing tarpaulins in each store, using the website and printed sales literature o o o Website (tentative) Printed sales literature (contents are the same as website) Word of mouth when consumers already experienced the products of tsineppin, they will surely share that to their families, friends or peers and will promote Tsineppin products o o Customer service Tsineppins philosophy is complete customer satisfaction Place the head office will be located within the Boracay Island for easy access

MARKETING RESEARCH

During the initial phase of marketing plan development, the team stayed in Boracay for one week to study consumer behavior. We also conducted interviews among indirect competitors. This provides useful insights into the decision-making process of the business. BREAK-EVEN ANALYSIS Monthly units Break-even 405 Monthly Sales Break even Php 80,952.38 ASSUMPTIONS Average per unit Revenue Average per unit Variable Cost Estimated Monthly Fixed Cost Php 126 Php 74 Php 51,000

BEP sales volume = 51000/200 74 = 51000/126 BEP sales volume = 405 units/month = 405 x 12 = 4860 units/year BEP peso sales = P 51,000 x 12/ .63 = P 612,000/.63 = P 80, 952.38/month = P 971,428.57/year * =174/200

= .63

SALES FORECAST Year 1 Year 2 Year 3 Year 4 Year 5 971,428 1,265,000 1,644,000 1,973,400 2,170,740