The Launch of VMobile Techno User Card for Secondary & Tertiary Students

in Baguio City, Benguet Philippines.

Presented to
The Faculty of College of Business Administration
University of the Cordilleras
Governor Pack Road, Baguio City

In Partial Fulfillment of the

Requirements of the Subject
Feasibility Studies (FS 100)
4:00-5:25 TThS 1st Trimester, SY 2012-2013

Submitted by:
Jamee A. Arjona
Georeena Riccielle Q. Bileson
Chris Lhesrick M. Nubla
Stephen Kyle C. Omli
Kristine Danielle D. Panes
Ervin G. Rollon

Submitted to:
Luis H. Corpuz
Adviser

Approval Sheet

This project paper proposal entitled The Viability of VMobile Technologies

Incorporations Techno User for Tertiary Students in Baguio City, Benguet
Philippines prepared and submitted by Jamee A. Arjona, Georeena Riccielle Q.
Bileson, Chris Lhesrick M. Nubla,Stephen Kyle C. Omli, Kristine Danielle D.
Panes, Ervin G. Rollon, in partial fulfillment of the requirements for Feasibility
Studies is hereby endorsed for approval.
Mr. Luis H. Corpuz
Adviser
This is to certify that the project study mentioned above has been
approved and accepted on by the project study committee.
GRACE R. TOBIAS
Panel member

Mrs. Orlina Ursula Regua

Panel member

Panel member

DR.RHODORA A. NGOLOB
Panel member
Noted by:

RHODORA A. NGOLOB, PhD.

Dean, CBA

(DATE)
Dr. Rhodora A. Ngolob, PhD
Dean, College of Business Administration
University of the Cordilleras

Dear Dr. Rhodora Ngolob:

We are students of the College of Business Administration conducting a
Feasibility study entitled: The Viability of VMobile Technologies Incorporations
Techno User for Tertiary Students in Baguio City, Benguet Philippines.
In line with this, may we invite you to serve as a member of the panel. The date
of our oral defense will be on (DATE).

Thank you and God Bless.

Respectfully,

Arjona, Jamee A.
Bileson, Georeena Riccielle Q.
Nubla, Chris Lherick M.
Omli, Stephen Kyle C.
Panes, Kristine Danielle D.
Rollon, Ervin G.

Endorsed by:

Luis H. Corpuz
Adviser

Reply Slip

____ I am willing to be a member of the panel for their project study.

____ Sorry, I cannot accept the invitation.

For consultations, I am free

_____________________________________________
(Please indicate date and time)

_____________________________________
Signature above Printed Name

(DATE)
Mr. Luis H. Corpuz
Faculty, College of Business Administration
University of the Cordilleras

Dear Mr. Luis H. Corpuz:

We are students of the College of Business Administration conducting a
Feasibility study entitled: viability of putting up Better-Living Company.
In line with this, may we invite you to serve as a member of the panel. The date
of our oral defense will be on (DATE AND TIME TBA).

Thank you and God Bless.

Respectfully,

Arjona, Jamee A.
Bileson, Georeena Riccielle Q.
Nubla, Chris Lherick M.
Omli, Stephen Kyle C.
Panes, Kristine Danielle D.
Rollon, Ervin G.

Endorsed by:

Luis H. Corpuz
Adviser

Reply Slip

____ I am willing to be a member of the panel for their project study.

____ Sorry, I cannot accept the invitation.

For consultations, I am free

_____________________________________________
(Please indicate date and time)

_____________________________________
Signature above Printed Name

Acknowledgment
The proponents would like to thank the Almighty Heavenly Father, for the
opportunity to enhance their knowledge and also, thank you for His unending
love, protection and guidance.
To the beloved parents and guardians of the proponents who inspired
them to be committed in their studies, for the unending support and love. The
proponents would like to dedicate this study to you.
To the panelists, Mrs. Grace R. Tobias, Ms. Orlina Ursula Regua, the
proponents would like to thank them for helping to polish their study. Thank you
for the suggestions and recommendations which made the proponents study to
be comprehensive and reliable.
To supportive adviser, Mr. Luis H. Corpuz, the proponents would like to
thank him for guiding them on how to make the Feasibility Study. The proponents
thank him for unlocking their hidden potentials and inner talents to come up with
this study.
To Mrs. Lea Bayubay, thank you Maam for helping the proponents to
polish the technical, financial and management aspect. Thank you for advising
the proponents to incorporate their capacity planning.
To Mr. Alexander Bayot and Arch. Aqiapao thank you for helping the
proponents in their floor plans.
Thank you to all of you more power and God Bless!!!

PRELIMINARY MATTER
A. Name of Firm
VMobile. Its name is derived from the mother company named
PentaCapital Investment Corporation. Penta as defined in MerriamWebster Dictionary as five. It is represented by the letter V in Roman
Numerals. Mobile, on the other hand, is derived from mobile phones
where the proposed product is to be used.
B. Location
VMobile Technologies Incorporations is located at Rm. 205,2nd
Floor, National Life Bldg.,Session Road, Baguio City. This is an ideal spot
for the business since it is in Session Road which is coined as the most
accessible and most popular road in Baguio City. Accessibility and
customer traffic is the reason why Session Road is chosen to be the
location of the business.
a. Baguio Head Office:
Rm. 205,2nd Floor, National Life Bldg.,Session Road,
Baguio City
b. Plant Size:
20x15 Square Meter
C. Brief Description of the Product
The VMobile Techno User Card is used to gain an 8-12% Personal
Discount for a lifetime in loading mobile phones and to have the ability to
load all giant networks by using only one SIM and existing users mobile
phone.
Techno Users also have a user pin and password to have an online
inventory.

D. Project Summary
The proponents are developing a study on developing VMobile, an
existing firm at Ortigas Manila to be brought here in Baguio. Its name is
derived from the mother company named PentaCapital Investment
Corporation. Penta as defined in Merriam-Webster Dictionary as five is
represented by the letter V in Roman Numerals. Mobile, on the other
hand, is derived from mobile phones where the proposed product is to
be used.

The target market for this proposed project are the secondary &
tertiary students of Baguio City particularly students of the University of
the Cordilleras. The goal is to provide these students affordable and
profitable business. To address this, we are to launch VMobile Techno
User Card. This is a card that load giant networks with the use of only one
existing user phone and one existing SIM.
Feasibility Criteria
The project proposal would serve as the projects feasibility criteria.
It would include the number of customers we would serving to, which are
students, primarily secondary & tertiary college students.
Management Study
VMobile Technologies Inc. management aspect determines
important factors necessary in the proper management of the business.
Personnel, Salary and Wages plans as well as its benefits and other
company policies were imposed for the proper supervision. (The
proponents decided to have a 250 daily salary for the two encoders.)
Marketing Study
This aspect is necessary to determine the actual needs, wants, and
expectations of our market. The core of the marketing study is to
determine if there is really a demand in the market of VMobile Techno
User Card. Based on the forecasted demand, (PERCENTAGE) of the total
respondents are willing to avail the service.
Technical Study
This contains the location as well as the floor plan of the project.
(The proponents decided to lease Rm. 205,2nd Floor, National Life
Bldg.,Session Road, Baguio City.)
Financial Study
The financial aspect contains information regarding the success of
the operation of the business as presented by the projected financial
statements. (Based on the projected financial statements with the
supporting schedules, the company will be able to meet favorable
profit which is increasing every year and that the partners can
recover their invested capital within a short period of time.)

Socio-Economic Study
(VMobile Techno UserCard is designed not only to gain profit
but also to contribute to the progress and development of the
community and to the society as a whole.) It also aims to establish
some proposals for the organization, which includes the personnel and
customer.
Market Study
Baguio City is the Summer Capital of the Philippines which is now
engaging for industrialization. Since there are new settlers in the city, the
population for 2012 is now 16,638 in the said area according to National
Statistics Office which comprises of Filipino and non-Filipino families and
also tertiary students came from the neighboring places of Baguio City,
Benguet and from other countries such as Korea, China, Jamaica, Nigeria
and America since the tertiary education in the said city is competitively
affordable compare to tertiary education in other Philippine Regions. As
perceived by the researchers, mobile phones with loads is a necessity
from these students to have communication to their parents or guardians
to allow them to gain payment for their tuition, rent fees, allowances and
other expenses which is the core reason why this feasibility study is now
conducted.

Management Aspect
A. Name of the Firm
The name of the firm is VMobile Technologies Inc.. The business is
engaged into franchising business since 2008. The reason behind why this
business engaged in franchising is because VMobile immediately connect or
access from the different website and to be able to have instant complete units of
computers from software and hardware. The Units is directly purchased to our
Mother Company and the partners will fully pay the purchased products. If the
company will dissolve all the equipments will be converted to cash for easily
distribute partners.
VMobile Technologies Inc. was derived from the company that provides
their financial capacity which is PentaCapital Investment Corporation. Penta as
defined in Merriam-Webster Dictionary as five is represented by the letter V in
Roman Numerals. Mobile, on the other hand, is derived from mobile phones
where the proposed product is to be used.
VMobile Technologies Inc. Baguio Branch must follow the terms and
conditions as agreement in the PentaCapital Law of Partnership.
Name of the Product and Description
The VMobile Techno User Card is used to gain an 8-12% Personal
Discount for a lifetime in loading mobile phones and to have the ability to load all
giant networks by using only one SIM and existing users mobile phone.
Techno Users also have a user pin and password to have an online
inventory.

REQUIREMENTS IN FRANCHISING
Residential:
Photocopy and any valid ID with picture
Proof of billing (BENECO, BWD, Credit Card, Cable)
Proof of Income (Bank Statement or Passbook last 3 months of transaction)
Contract of Lease

Business:
Photocopy of any valid ID with picture
Proof of Income (ITR or Bank Statement)
Contract of Lease
Business Permit or DTI or SEC Registration
TIN

B. Brief Description
The VMobile Technologies Techno User is used to gain an 8-12%
Personal Discount for a lifetime in loading mobile phones and to have the ability
to load all giant networks by using only one SIM and existing users mobile
phone.
Techno Users also have a user pin and password to have an online
inventory.

C. Objective of the Study

1. To be able to have the lifetime personal load discount within the City of Baguio
2. To be able to render excellent services that would be highly patronized by our
customer in terms of train them in the technicalities of the product.
3. To be able to give the best loading experience to all future Techno Users.

D. Grantt Chart
The Grantt Chart shows the sequence of the events and the time required
for VMobile Technologies Inc. Techno User for its completion.
Table 1
VMobile Techno User Card
Proposed Gantt Chart from January 1 July 31
Januar
y

Februar
y

March

April

May

June

July

Installation
of
Materials
Installation
of Utilities
Orientation
of
Employees
Promotion
and
Advertisin
g
Normal
Operation

E. Form of Buiness Organization

Note: Since that the agreement in the terms and condition are well
followed and Penta Capital does not require what form of organization, the
business will use. So we decided to form our own.
The form of business organization to be adopted by VMobile
Technologies Inc. Baguio Branch will be in General and Limited Partnership . It
is composed of five partners. Chris Lhesrick M. Nubla is the General Partner and
the other gentlemen and ladies will be Limited Partners. The five partner
contributed money, which will serve as the common fund of the partnership
during its operation and become partnership property.

The content of article of Co-Partnership are agreed by the partners by

signing the said article (See Appendices). The partnership agreed that Mr. Chris
Lhesrick M. Nubla would be our managing partner.

F. Registration and Licenses

The legal requirement for the business to operate include articles and by
Laws of Partnership to be submitted to Securities and Exchange Commission,
verification of business name with the S.E.C. Registration of business name with
the Bureau of Commerce, Registration with the Bureau of Internal Revenue for
TIN, Business Permit from the City Hall and Registration of Employment with the
Social Security System.
Table 2
The Advantage and Disadvantages of Partnership
Advantages
1. Easy to Organize

Disadvantages
1. Limited Life of the Firm

2. Retention of Profits

2. Limited Liability

3. The Combined Talents, Judgement

3. Possible Disagreement of Issues

4. Less Government Supervision

5. Possible Disagreement of Decisions

G. Organizational Structure
The Partners adopt the line and staff organization. It is easier to manage
and resolve existing problems that come in (Internal Problems) and out (External
Problems) in the business. The coordination and implementing business policy
are easily followed.
Table 3
The Advantage and Disadvantages of Line and Staff Organization
Advantages
1. Proper Coordination of Staff

Disadvantages
1. Possibility of too many Line Order
within the Organization

2. Easier work load with proper

assistance from the person involved

2. Possibility of some management

people to force Line and Staff to do

practically all the work

3. Provides supplementing arm
between the different level of
management
4. Capable of resolving up
departmental problems
Figure 1
Line and Staff Organization

FRANCHISER
PARTNERS

GENERAL
MANAGER

Secretary

Technical
Head

Encoder 1

Accountant /
Bookkeeper

Encoder 2

Note: Accountant would be hired

every year to check the account
of the business.

H. Labor Requirement
Commercial, industrial, big or small business establishment has Labor
Requirement that will serve as a guide for proper selection of employees, like
other business firms, VMobile Technologies Inc. has corresponding Labor
Requirement to be able for the company to be productive and successful in the
field of business. Our employees must be Honest, Hardworking and Determined
in their field of specialization. They must be sociable and have Good Moral
Character, Good Communication Skills with the customers. They must be
competitive to be hired in the company.

I. Working Profile
The companys most assets are the employees because they help support
the company for the best and success of the business.

1. General Manager The responsibilities of the General Manager is to monitos

the performance of the employees and to see to it the daily operations of the
business. Attend meeting or negotiates monitor and evaluate workers.
Qualifications:
-

Must be a graduate of Bachelor of Science in Business

Admistration

Must have at least 2 years of working experience related to the

job position

Must have a persuasive skill and personality

Must possess a leadership quality

2. Secretary Keeps the daily records of the business. Maintain personal

records of each employee including the lists of seminars and orientation
attended. Maintain the daily time records of the employees.
Qualifications:
-

Preferably Office Management Graduate

Have knowledge in Bookkeeping Process

Computer literate

Good communication skills

Must be willing to work overtime

Female

Single

With 1 year experience in Office Administration

3. Accountant / Bookkeeper Responsible for receiving cash payment in the

customers and for the payment of any related expenses. Keeps the daily records
of cash receipts and disbursements. He/She is also responsible in depositing
cash receipts in the banks.
Qualifications:
-

Must be a graduate of Bachelor of Science in Accountancy

Must have at least 2 years of working experience related to the

job position

18-25 years old

Computer Literate and can work under pressure

Male / Female

4Technical Head Must know the process of VMobile Technologies Inc. from
Techno Users Registration, Load Replenishment and Customer Support.
Qualifications:

Preferably has a Call Center background

18-25 years old

Easily trained and has communication skills

Computer Literate and can work under pressure

Male / Female

5. Encoder Responsible for encoding and printing tasks.

Qualifications:
-

Preferably has a 6 month experience in encoding

18-25 years old

Easily trained and has communication skills

Computer Literate and can work under pressure

Male / Female

J. Working Salary
Good salary is one factor to have productive competitive employees. This
portion shows the companys policy regarding the salary and wages rates in
accordance with the provisions of the Labor Code of the Philippines, which is
supported by the Department of Labor and Employment.

Workers Benefits:
The management decided to give SSS and Phil Health as incentives. It is
part of the managements gratitude for their hardwork and sacrifices for the firm.

Fringe Benefits:
As additional to the basic salary the partners will also give vacation leave
(employees with at least 2 years as a continuous service is given 10-15 days
vacation leave with full pay every year of satisfactory and loyal services), 13 th
month pay is also given to them as motivation to do their work well.

Table 4
Workers Salary and Benefits
Position

N Salary
o per
. Month
(Php)
1 6,600

Salary per
Year
(Php)

Benefits
(Php)

79,200

Secretary

1 6,160

73,920

Accountant

1 6,600

79,200

Technical
Head

1 6,600

79,200

Encoder

2 11,000

132,000

SSS 400
Phil Health
62.50
SSS 150
Phil Health
62.50
SSS 200
Phil Health
62.50
SSS 200
Phil Health
62.50
SSS 250
Phil Health
125

Total

Php 443,520

General
Manager

Total
Benefits per
Year
(Php)
4,800
750

Fringe
Benefit 13th
Month Pay
(Php)
6,600

1,800
750

6,160

2,400
750

6,600

2,400
750

6,600

3,000
1,500

11,000

Php 14,400
4,500

Php 36,960

Marketing Aspect

I. General Market Description

Marketing is the process of continuously catering to the target customers
needs, wants and expectations superiorly than competitors. Also, it is the process
by which goods and services move from producers to end users. (Josiah Go)
Baguio City is the Summer Capital of the Philippines which is now
engaging for industrialization. Since there are new settlers in the city, the
population for 2011 is now 16,638 in the said area according to National
Statistics Office which comprises of Filipino and non-Filipino families and also
tertiary students came from the neighboring places of Baguio City, Benguet and
from other countries such as Korea, China, Jamaica, Nigeria and America since
the tertiary education in the said city is competitively affordable compare to
tertiary education in other Philippine Regions. As perceived by the researchers,
mobile phones with loads is a necessity from these students to have
communication to their parents or guardians to allow them to gain payment for
their tuition, rent fees, allowances and other expenses which is the core reason
why this feasibility study is now conducted.
The advertisement that will be used are radio, newspaper and leaflets
since streamers are already available and free from the mother company.

II. Target Market:

The target market of VMobile Techno User Cards are Secondary Students
/ Highschool Students & Tertiary Students / College Students.

III. Factors Affecting the Market

There are lots of things to be considered in launching a product in order to
be competitive to others.

The most important factor that the business must consider is competition,
the business should focus on its competitors strength and weaknesses.

If you are in Rome, do what Romans do this is a traditional quotation to gain

comparative advantage to your competitors but there is a revised quotation from
Chris Lhesrick M. Nubla saying If you are in Rome, do what Romans cannot do
this quotation is stated to execute not only Competitive Advantage but also
Absolute Advantage.
There are no direct competitors for the product and we only have indirect
competitor such as Retail Stores and Loading Stations since they do not give a
lifetime discount after they purchase the product which is a Competitive
Advantage and the product price is just 300 pesos rather than 999 in Network
Plans which is an Absolute Advantage. In order for the product to be more
successful, good strategies and excellent managing of the product should be
considered. Price and quantity of the product to be offered is also a factor. Price
is Friendly to our customer, which is affordable in the pocket of the customer
and with good quality services. The location is accessible, it is also one of the
factor to be consider.

IV. Supply Analysis:

Since our proposed product is about mobile phone loading, our
competitors are the following:
1. Retail Stores / Sari-Sari Stores
2. Authorized Loading Stations
3. Network Plans
Below is the table showing the different pricing structure of our competitors.
Table 5
Pricing Structure of Competitors
Indirect Competitors
Retail Stores / Sari-Sari Stores

Pricing
Additional 1-3 pesos from SRP

Authorized Loading Station

Suggested Retail Price

Network Plans

999 pesos is the Lowest Offer

Competition Analysis
Almost all people have a mobile phone and for them to communicate they
need a load which is the core reason of this study and since it is now a days
considered a necessity there are indirect competitors already exist.
Retail Stores or Sari-Sari Stores as Filipinos coined them sells load but
they have a mark-up price of 1-3 pesos other that the Suggested Retail Price
(SRP) which already consist of an Income. It doesnt have a discount and worst,
they still increase from SRP for about 30%
Loading Stations are mostly found in Malls and even Groceries which
follow the SRP but still do not have the lifetime discount of 8-12% which VMobile
Techno User Card offer.
Network Plans lowest offer is their Plan 999 which you will enjoy discounts
in just 1 month and before you can avail for a Plan a person need to submit a
Pace Slip which all Secondary &Tertiary Students cannot comply and since it is
999 pesos VMobile Techno User Card has a competitive advantage since they
offer the product in just 300 pesos with lifetime discount.
In these scenarios, VMobile Techno User Card have both Competitive
Advantage and Absolute Advantage over existing competitors.

Source of Data:
Data presented were gathered from different government agencies,
different customer feedback and through competitors websites and branches.
The sources are the following:
1.
2.
3.
4.

NSO
Customers that avail loads from competitors
Competitors websites and branches
City Hall

Marketing Strategy:
For the product to penetrate the market, they will establish good customer
relation, good quality of products,, affordable prices and discounts.

Table 6
Proposed Pricing Structure of VMobile Techno User Card

Demand Analysis
Launching a new product in Baguio City specially located in Session Road
which provides lifetime discount in communication is a big help in the community
especially to those students which is apart from their parents just to pursue their
educational careers. Baguio is our major demographic because there are a lot of
secondary and tertiary schools in the vicinity. Our Baguio Branch is near Baguio
National Highschool, Pines National Highschool University of Baguio Highchool
and Saint Louis Highschool for secondary education then STI, College of
Technlogy, Baguio Central University, Philippine Women University, Saint Louis
University, University of Baguio and specially University of the Cordilleras for
tertiary education.
Since almost all of the students need a load to contact their parents for
their allowances, rents, tuition or just for socializing purpose and since this
product is new in the market, we can assume that almost all the target market will
avail of VMobile Techno User Card since they will not run to any store to get a
load.

Table 7
Sales Assumption for 1st Year of Operation
Given:
299 x 20 = 5,980

Sales

- 3,988

- Capital

1,992

Income

Customers in a Year / # per Package x Income

10,000

20

1,992

= Total Income per Year

=

996,000

Customers x Load per Day x Days per Year x %Earned = Total Income per Year
10,000

15

365

0.02

1,095,000

Advertisement / Promotion
For the business to be known on public, the owners have thought of
advertising programs. It would of great help for the management to promote its
product and gain higher rate of return.
Below are the advertising media that the firm will use in order to be known
in the locality.
Table 8
Annual Expense of Advertising
Advertisment

Amount

Radio

26,400

Newspaper

23,040

Leaflets

1,500

TOTAL

Php 50,940

Advertising Program
Radio connections for further spread business and inform the public on
the product and service of the VMobile Techno User Card. It will be hired
particularly at 95.1 Love Radio from Mondays to Friday, four times a day between
9:00 pm to 12:00 am which will announce by the Love Dj Papa Jack. A 15
seconds slot time will be chosen to delimit its expenses. The firm will spend
4,400 per month having a total of 26,400 for six months.
Newspaper Baguio Midland Courier is the print media we will use half
page and published once a month. This will cost the firm 3,840 per month, a
total of 23,040 for six month publication
Leaflets are to be floated before the grand launch of our product where
people are likely to pass the area. We will be floating 1,000 pieces with the help

of CopyTrade Center SM Baguio Branch. It will cost the firm 250 a month from
a total of 1,500 times in a year.
Streamers is free provided by the company which comprises of 2
streamers every 20 Techno User Cards