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MARKETING | TECHNICAL | FINANCIAL

TARGET MARKET
college students and young adults

between 15 and 24 years old

men and women

residents and/or located in institutions


within Katipunan Area
MARKETING | TECHNICAL | FINANCIAL

MARKET POPULATION
students enrolled in
UP-Diliman, Ateneo and
Miriam College

percentage of the youth,


aged 15-24, in the
communities within
Katipunan Area.
MARKETING | TECHNICAL | FINANCIAL

DEMAND FORECAST

MD = AMAR x TM x CR

where:

MD - market demand
AMAR - adjusted market acceptability
rate
TM - target market
CR - consumption rate
MARKETING | TECHNICAL | FINANCIAL

Total Target Population: 41,423

Annual Growth Rate: 1.92%


MARKETING | TECHNICAL | FINANCIAL

Y Total Total Demand-Supply


2e Demand Supply Difference
0
2a 128,925 15,849.12 113,075.88
0r
20
6 131,334 16,710.81 114,623.19
0
20
7 133,790 17,619.57 116,170.43
0
20
8 136,292 18,577.86 117,714.14
0
20
9 138,838 19,587.81 119,250.19
1
20
0 141,434 20,652.99 120,781.01
1
20
1 144,082 21,776.75 122,305.25
1
20
2 146,781 22,961.70 123,819.30
1
20
3 149,526 24,210.50 125,315.50
1
20
4 152,327 25,528.00 126,799.00
1
0
5 155,181 26,917.27 128,263.73
1
6
MARKETING | TECHNICAL | FINANCIAL

MARKET POSITIONING
customized jeans maker

for college students and the young adults

offering flexible, unique and creative jeans,

and perfect fitting and comfort

of the client's choice of cut and fabric


MARKETING | TECHNICAL | FINANCIAL

PRODUCT

Symbol of creativity, uniqueness and


expression of individuality
MARKETING | TECHNICAL | FINANCIAL

PLACE

2/F J&R Commercial


Center
Katipunan, QC
near to target market

continuous growth of the


student market
MARKETING | TECHNICAL | FINANCIAL

PRICE

Php 800-1000 per pair


middle-ranged premium on prices
MARKETING | TECHNICAL | FINANCIAL

PROMOTIONS
- launching cum fashion show

- marketing efforts for brand awareness

- tie ups with fashion and urban


magazines and lifestyle TV shows
TECHNICAL STUDY
MARKETING | TECHNICAL | FINANCIAL

PRODUCTION ARRANGEMENTS

In-house manufacturing

Close supervision
Production schedule Control
Eliminated Subcontractual Costs
MARKETING | TECHNICAL | FINANCIAL

PLANT CAPACITY

600 jeans/month

2 tailors able to make


20 pairs of jeans daily
MARKETING | TECHNICAL | FINANCIAL

PRODUCTION INPUTS
Canvas
Army
Denim - Ordinary
Denim - Stretch
Corduroy
Twill
Classic Fit
Suede
Relaxed Fit Western Cut Loose Fit

embellishme
Figure 2 | Denim fit designs for men available at PantSaloon

C Fit
Waistband
nt andFabric
backyoke Pocket
Waist
uts type
type
MARKETING | TECHNICAL | FINANCIAL

PRODUCTION INPUTS

Fabric supplier selection will depend on

quality of fabrics provided


extent of fabric offerings and
the reasonability of the prices
MARKETING | TECHNICAL | FINANCIAL

PRODUCTION INPUTS

Sewing Supplies, Embellishments, Labels

the two suppliers with the most


complete and diverse lines
MARKETING | TECHNICAL | FINANCIAL

PRODUCTION FLOW DIAGRAM

Pre- production Production Post


Production
• Pre-washing and •Serging •Storage
drying •Cutting •Delivery
• Materials purchase •Sewing •Fitting
• Design •Seam finishing •Alterations
conceptualization •Topstitching •Final delivery
• Materials selection •Closures and Hems
• Measurements •Additional designs
• Design simulation and •Quality inspection
adjustment •Production adjustments
• Final design •Costing and pricing
MARKETING | TECHNICAL | FINANCIAL

ORGANIZATIONAL STRUCTURE
Chief
Executive
Officer

Human
Finance Resource Operations Marketing
Manager s Manager Manager
Manager

Market
Jeans
Accountant Cashier Designer Cutter Researcher
Engineers
Purchaser

Figure 12| EALA Inc. Organizational Structure


MARKETING | TECHNICAL | FINANCIAL

STRUCTURAL REQUIREMENTS
MARKETING | TECHNICAL | FINANCIAL

PRODUCTION ARRANGEMENTS

Total construction costs:

Php 293,629 (22 days)

JGC Trading and Construction

Total Initial Investment : Php 1,948,965


MARKETING | TECHNICAL | FINANCIAL

Operating Costs
Production  

Variable 51885
Fixed 96006.67

Total 147891.7
Administrative 168375
TOTAL MONTHLY OPERATING Php
COSTS 316266.7
FINANCIAL STUDY
MARKETING | TECHNICAL | FINANCIAL

INITIAL INVESTMENT

Total Initial Investment Cost

Php 1,948,965

60% Equity + 40% Debt


Cost of Capital = 19.2%
MARKETING | TECHNICAL | FINANCIAL

FINANCIAL PROJECTIONS

- 2% annual sales growth

- 32% income tax rate

- 15% cost of debt (PNB rate)


MARKETING | TECHNICAL | FINANCIAL

PAYBACK PERIOD : 2-3 years

NPV : Php 22,392,795.10

IRR: 58%
MARKETING | TECHNICAL | FINANCIAL

TOTAL FINANCING NEEDED

Php 566,626.14