Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
BUSINESS PLAN
January 01, 2018
Zamora Street, Poblacion, Iligan City
Mobile #: 09351003270
Email ad: denimiabagsandpouches@gmail.com
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DENIMIA: Bags and Pouches
The undersigned __________________, hereby agrees that all financial and other
information that is has and will receive concerning DENIMIA: Bags and Pouches
Business Plan is confidential and will not be disclosed to any other individual or
entity without prior written consent.
The information shall remain the property of DENIMIA and shall be returned to
DENIMIA company promptly at its request together with all the copies made
thereof.
___________________ ________________________
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TABLE OF CONTENTS
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DENIMIA: Bags and Pouches
BUSINESS PLAN
I. EXECUTIVE SUMMARY
We aspire to be the market leaders in providing quality products within year’s from
inception
1.2 Vision
Denimia: Bag & Pouches vision to become the company that best understands
and satisfies the customers with its product and to be the leading brand in the
denim bags and pouches manufacturing place in the city of Iligan for the next 10
years.
1.3 Mission
Denimia’s Design mission is to establish world-class bags and pouches. It will make
its best efforts to satisfy customers by creating unique designs, friendly customer
service and products of consistently high quality. Denimia will invest its profits to
increase the employee satisfaction but at the same time gaining stable returns.
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1.4 Objectives
1.5 Philosophy
Store design that will be both visually attractive to customers, and designed
for fast and efficient operations.
Employee training
Marketing Strategies aimed to build a solid base of loyal customers.
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II. Company Description
Denimia Bags and Pouches is a sole proprietorship, owned by Louise L. Larot and
is located at Zamora Street, Poblacion, Iligan City near at 7-Eleven Convenience
Store. This shop offers a DIY products and premade products that are designed by
Louise Larot herself. All the pieces and design are made for everyone who wanted
to have a nice looking and affordable Denim Bags and Pouches.
The hours of operation will model the mall hours from 9:00 AM to 9:00 PM.
2.1 Ownership
Denimia: Bags and Pouches is owned and operated by Louise L. Larot. It will be
formed as a sole proprietorship. From taking up a business course, Louise L. Larot
developed a passion in doing business. She knows that if she would engage in
business she would earn extra money by doing it. Moreover, with her likes over
Denim products and the thoughts of doing business, L.L. Larot comes up with an
innovative thinking of making a bags and pouches made up of denims. And by this
she engaged herself in doing such businesses.
Louise L. Larot is a student of Iligan City National High School (ICNHS) and is now
taking up Accountancy Business and Management (ABM)
The Store will be located at Zamora Street, Poblacion, Iligan City. Near the 7-
Eleven Convenience Store. All crafted denim products will be displayed in the store.
The floor plan will include a 250 square feet back office and a 2,500 square feet are
that consists of the display area, customer’s lounge, a storage room and two
bathrooms.
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III. Products
C. Pouches
D. OTHER SERVICES
Our products-- bags and pouches are made up of denim which is a sturdy cotton
warp-faced textile. We have come up this kind of product since denim nowadays is
very trendy. Denim design has consistently been fashionable in the Philippines and
that is why we have chosen this product. The backpack bag is for female, for male
we have sling bags and pouches are for everyone.
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3.2 Product Sourcing
The source of raw materials needed will come mainly from our country. The owner
has contacts of the suppliers on those countries, which enables her to purchase
denims more easily. The raw materials will be stored in a well-maintained storage
room to keep the fabric’s sturdiness.
Denim is the new trend in the market because of the teens who love this kind of
clothing design. Since it is spreading everywhere, we decided to make denim stuffs,
which are bags, and pouches, where you can use anytime and any outfit you wear
would fit with it. It is fashionable and it goes along with the trend.
As the business, carry on we may add services that will encourage them to
patronize our product. We can add more designs for their bags. We may add
services like repair for damaged bags or pouches and a new gimmick which is a
‘drop and get denims’ which the customers can drop their old pairs of denim jeans
or any denim items they have and make into a new thing they like and then they
can get their different item from their old denims. Nevertheless, still our focus was
still on denim bags and pouches.
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3.5 Product Logo/Hallmark
A. Denimia
The Denimia hallmark can be seen in front of the bags and pouches. The
background emphasizes our product cloth, which is the denim, and then the stars
represents our desires and goals.
The name logo will also appear at the bags and pouches. The name of our logo
came from the type of fabric that the company will use, that is why it is called
“Denimia” to related our name from the main component of our product.
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IV. MARKETING PLAN
Here are other ways to penetrate the target market, before and after opening:
Denimia is a start-up business, and marketing is essential to its success and future
profitability. The store offers a place for people to shop denim bags and pouches in
a comfortable and convenient environment. The basic market need is place where
customers can flaunt their creativity and uniqueness through DIY denims and to
also meet people with the same interests.
Denimia possess good information about the market and knows a great deal about
the common attributes of the prized and loyal customers. Denimia will use this
information to understand their specific needs and ways to communicate with them
better.
The Denim bags industries have wider competitions. There are some seamstress
contending for distribution contracts and fame. Some works located locally or
nationally. Some seamstress work on their own pace or work with larger
companies. There are many form of competition in these industries:
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Denimia’s DESIGN will target one type of group of consumers. It will be used as
dispersal channel. The end user will be interacting with the physical store or via
website.
Denimia’s bags & pouches are providing its customers with innovative,
creative, handmade/machine made of fabrics. It will provide the following
benefits to their customers:
Selection: A wide range of denim bags and pouches with styles and
creations.
The Market Trends within the Denim industry is toward custom, unique pieces and
perceived tendency of the stylish denim production. Customers are using similar
but limited and unique pieces of denim bags and pouches as way of creating
distinction from the common population for a way to stand out. DENIMIA has
leveraged this trend by creating unique and distinct pieces of bags and pouches.
The latest trend gaining momentum in the market is recycling of denim jeans into
assorted items. Recycling of denim jeans or any denim fabrics is done to minimize
environmental exploitation for resources and to reduce the dependency on the
scarce raw materials to produce new denim style.
The report covers the market landscape and its growth prospects over the coming
years. This growth can be attributed to the value that people place on having
distinctive, unique pieces of Denim for affordable but profitable prices. The market
demand increases as Denimia’s products are favorable to everyone since our
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products are not only limited to a certain group of people. The demand is also high
for Denimia makes unique pieces of bags and pouches. Having high demand
enables the business to have an increase in production and in sales. DENIMIA: Bags
and Pouches have been prepared for a long-run business based on an in-depth
market analysis with inputs from industry experts.
Denims have been in business industry for a long time and as of today it exists in a
dynamic and competitive environment. In order to increase profitability, many
companies are restructuring to create leaner organizations and adopt new denim
style. In the denim industry, companies can operate as retailers or manufacturers
(wholesalers) or both. Competitive Edge In a market where consumers are
barraged by advertising and marketing campaigns delivering an onslaught of
lifestyle and fashion messages, a brand name is a powerful weapon. Brands have
become an increasingly significant factor in bags and pouches. Many consumers
have less time to shop and are spending their disposable income more carefully.
Established brand names, with their quality image, make the shopping experience
easier and faster for many consumers. For manufacturers, brands build consumer
loyalty, which translates into repeat business. The company's name, New Look, is a
competitive advantage in itself. The name is not attached to any particular group of
customers and it allows entry into different segments of the industry. Another
competitive advantage is the company's marketing strategy. Through the use of
celebrities, advertising, and promoting the company is able to develop its presence
in the market.
Every business has to face multiple issues, because issues are the most important
items of an organizations agenda and directly connected to its success. According
to Park, “If there is no failure, there is no growth.” As expected its critical issues
include: the creation of an attractive advertising campaign, marketing and change
customers wants/needs such as the end of customers loyalty as well as the
elimination of budgets deficit. DENIMIA: Bags and Pouches are so popular
nowadays mostly teenagers using this because those are the trends and also it is
easy to carry no hassle.
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4.9 Market Analysis
11%
Adult
Others
ADVERTISING AND PROMOTION: The avenues of the distribution will also serve
for advertising and promotion.
PRICING: The pricing scheme of our product which is the DENIMIA: Bags and
Pouches will be based or depends on the cost of the materials used, sizes, styles
and the amount of time rendered by the piece.
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V. SWOT Analysis
The following SWOT analysis captures the key strengths and weaknesses within the
company, and describes the opportunities and threats facing “DENIMIA: Bags
and Pouches”
5.1 Strengths
5.2 Weaknesses
5.3 Opportunities
5.4 Threats
High cost of raw materials that will lead to an increase of the products’
prices.
Competitors that have experienced and well financed.
The Denimia Bags and Pouches Store will offer you classy & trendy bags and
pouches for both men and women. Denim is a way of life and never missed trend.
It is loved by the millennials. We will offer unique and good quality of product. If
consumers wanted to make their own design, either bags or pouches, we will grab
those suggestions to meet their wants and create it whole-heartedly.
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5.6 Marketing Strategy and Positioning
The Denimia Bags and Pouches Store will be located at Zamora Street, Poblacion,
Iligan City near at 7/11 convenience store. Our store is accessible to everyone since
it resides at the center of the city.
Based on our knowledge and observation to our community, making denim bags
and pouches touch up the needs of the millennials especially for fashion and
dedicating a certain outfit.
The Denimia Bags and Pouches Store will use Psychology Pricing model since price
is the major concern of all customers. Setting the price of a bag at P199 is proven
to attract more consumers than setting it at P200, even though the true difference
here is quite small. It's a minor distinction that can make a big difference. One
explanation for this trend is that consumers tend to put more attention on the first
number on a price tag than the last. The goal of our pricing policy is to increase
demand by creating an illusion of enhanced value for the consumer. In order to
gain more profits, we will also be handling customer through online based since
social media is really known all the way. We will also be having discounts to those
customers who will buy 5 and above. As additional strategy we will offer lay away
plans for our customers specially student. (1 week to 1 month)
5.9 Promotion
During the opening, the store will give 10% discount in any items of Denimia
Bags and Pouches for the first 15 customers. Also;
During the opening, the store will hold a contest that will give something,
such as a coupon to everyone who participates in the contest.
The company will distribute samples of the product for the lucky winner of
the contest, promotional products branded with the company’s logo, or other
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gifts at a key location. This gives people firsthand experience of the Denimia
Bags and Pouches.
The product will be post to all of our social media accounts (Facebook,
Twitter, Instagram) and posting live feed on Snapchat and Instagram’s live
story, will show our customers their gracious giving is actually helping a local
friend in need. We are real people behind a company wanting to continue to
make real change. Be authentic. Be REAL. That is who you are.
Denimia would also be a seller in Lazada so that customers that can’t go to
the local stores of Denimia: bags and pouches can easily buy the bags they
like without going to its physical store
5.10 Packaging
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5.11 Store Lay-out
We will assure that everyone will have a convenient shopping with our store which
is fully air-conditioned and show cases our very own minimalistic store design that
were beautifully arranged bags to attract the attention of every customers. We
provide area to entertain the customers. The sample picture below will be the basis
of our store.
DISPLAY AREA (SHOWCASE)
Customer’s Lounge
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5.12 Advertising Lay-out (Television and Ads Sample)
A. Billboards
B. Television
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VI. Sales Strategy
400,000.00
350,000.00
300,000.00
250,000.00
200,000.00
150,000.00
100,000.00
50,000.00
0.00
Our Sales representatives will be trained about our product and how they will going
to introduce, promote and sell our bags and pouches to existing and prospective
customers. They will engage with customers enable to find and know what kind of
designs they want for denim bags and pouches. In that way, we can provide
complete and appropriate solutions for every customer in order to boost top-line
revenue growth, meet customers' expectation and profitability. Just like other
companies, they will be paid based on commission and base salary.
If the proposed plan is not successful after some years of operating, Louise Larot
the owner of Denimia: Bags and Pouches will exit the business endeavor through
liquidation. She will sell everything such as equipment and merchandise at market
value and use the revenue to cover or pay off any outstanding debts. The
remaining debt will be paid by L.L Larot in the form of monthly payments until all
debts are paid in full. If acceptable loss has been determined, she will begin closing
the business and paying back debts
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VII. Organization and Management
Louise Larot
Gen. Manager/
Owner
Almirah
Tanggote
Seamstress
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7.3 Personnel Plan
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VIII. Financial Plan
The following sections will outline important financial information including sales,
expenses and net profit for a three-year period. It also consists of the start-up
requirements, assets, liabilities and capital, and the break-even analysis.
Denimia will be completely financed by equity capital provided by the owner L.L.
Larot. We will pass our break-even point within the first year.
Highlights
4,000,000
3,500,000
3,000,000
2,500,000
Sales
2,000,000
Expenses
1,500,000 Net Profit
1,000,000
500,000
0
YEAR 1 YEAR 2 YEAR 3
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8.2 Start-up Requirements
Expenses Amount
Legal Fees/Business Permit 5,000.00
Website Development 10,000.00
DSL set-up 1,900.00
Denims 50,000.00
Others (Threads, Zippers, etc) 10,000.00
Assets Amount
Cash 30,000.00
Cash in Bank 100,000.00
Bags and pouches for store display 200,000.00
during opening
Store & Office furnitures 100,000.00
Computer w/ accessories 30,000.00
POS 16,000.00
CCTV/Security cameras 15,000.00
Tools 23,000.00
Operational Equipment 20,000.00
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8.5 Break-Even Analysis
This is when at the end of 1 year the expenses is equal to the sales incurred which
is amounted to 2,625,318.33
Expenses Cost
Start-up Expenses 25,633.33 (divide to three years)
Rent Expense 240,000
Salaries & Wages 1,839,600
Commission 100,000
Advertisement expenses 400,000
Others cost not stated above 20,000
Total expenses incurred 2,625,233.33
400,000.00
300,000.00
200,000.00
100,000.00
0.00
-100,000.00
-200,000.00
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TABLE 1 BREAK-EVEN ANALYSIS DATA
Note: The data above is just only speculation if we will not earn profit nor loss.
But as per evaluation at the end of the 1st year of operation we will earn profit
and pass the break-even point.
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DOCUMENTATIONS
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REFERENCES
https://www.shopify.com.ph/guides/businessplan/sample-
business-plan
https://labs.openviewpartners.com/10-business-philosophies-to-
guide-startup-growth/#.WqADLihuaM9
https://www.thebalance.com/executive-summary-of-the-business-
plan-2948012
https://www.bplans.com/financial_planning_business_plan/financi
al_plan_fc.php
https://www.investopedia.com/university/business-plan/business-
plan7.asp
https://blog.hubspot.com/marketing/brand-slogans-and-taglines
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MEMBERS
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