I. Executive Summary

Market

Our expandable bag organizer is now the newest twist to the

normal bag organizer. A bag organizer that can conform to the sizes of

any bag. Our market is like an open field still so available and not yet

congested.

Poche (expandable bag organizer) is different from the other bag

organizers in the market. It will revolutionize the bag organizer industry; it

will surpass the limitations of the old bag organizer. High quality flexible

full of new functions such as the ability to provide more pockets and other

functional additives.

1

Business Description

At the front of the shop will be a wall display of the product with

advertisement at the same time. Upon entering the store is another

display cabinet containing products and a cashier will be positioned

behind these display cabinets which encloses an area for the store

personnel. There will be a close back-area intended for the storage of the

product of the company. A comfort room will be provided for the employee

as well as for the customers who will patronize the product.

Products

Sariya Company’s Poche (expandable bag organizer) will be

manufactured by the two (2) sewers hired by the company. It will be

mainly consist of five (5) pockets with additional pockets. Each of them

measures four (4) inches in width and five (5) inches in length. The bag

organizer will have similar styles with various designs of fabric used.

Product will be included with a pouch as a complementary for the bag

organizer.

2

Management

Sariya is registered in the form of partnership. The partners namely

Mr. Arnold Nebres who has three (3) years’ experience in Marketing and

Sales. He served as Marketing Assistant of the Gotcha Foods Corporation

for two (2) years and one (1) year as Sales Coordinator of Toy Kingdom

Express of SM Lipa City, Ms. Diana Pagdagdagan, Ms. Cristina Elec, Ms.

Mariane Peleo, Ms. Cherry Ann Porto, Ms. Raquel Esteria, Ms. Madelle

Purificacion, Ms. Ave Gilainne Balazon, Ms. Kathleen Fatimah Pastor, Ms.

Christine Joy Silanga, Mr. Martin Manoling, Mr. John Nathanael Afable

and Mr. James Nicole Pimentel.

We have decided to have equal liabilities for the indebtedness of

our business. Likewise, profits and losses will be shared equally and/ or

according to an agreed percentage sharing.

3

Financing Needs

Sariya Company needs atleast P187,715.00 to finance all the start-

up cost of the business. The plan to cover up the expenses of the

business is that each of the partners will invest P15,642.92 coming from

their personal funds. The firm and its founders have decided not to make a

loan from a bank because the investment needed is still a manageable.

II. Business Mission and Strategy

Vision Statement

Sariya Company will be a leading manufacturer of world class bags

and bag organizers in the Philippines by 2025 and in Southeast Asia by

the year 2040.

Mission Statement

To heighten the awareness of every women to be organized

with their stuffs. Thus, offering an expandable bag organizer would

help them to have an organized bag inside and out. Sariya

Company wants to improve the quality of life of women by making

this expandable bag organizer as a necessity in their daily lives.

4

Philosophy

Sariya provides high quality product that will ensure

customer’s value for money.

Strategic Elements

Sariya Company’s strategy embodies several elements:

The company will be the first business that will offer an expandable

bag organizer in the market.

The company will be located in Tanauan City, a city located in

Batangas Province which comprised of a large population.

The expandable bag organizer will be offered in various designs to

fit the taste of every consumer.

The company would offer extra pockets to consumers who would

want to add extra pockets for their bag organizer.

5

Strategic Objectives

To make on industry expansion through offering a company’s own

brand of bag by the sixth year of operation.

To expand additional location of the business after five years.

To be able to secure back-up suppliers prior to operation.

III. Sources and Uses of Funds

Start-Up Costs Summary

Start-up costs will be P187, 715.00 which includes acquisition of

property and equipments, lease payments, salaries and wages of

employees, initial working capital for 3 months, inventories, permits, and

other expenses.

6

Sources and Uses of Funds

SARIYA COMPANY

Product : Poche (expandable bag organizer)

PROJECT COST (SUMMARY)

Acquisition of Property and Equipment / OthersFurniture & Fixture 10,000.00Business Permit & Licenses 10,000.00Pre-operating Expenses 5,000.00

Working Capital (approx. for 3 months)ProductionDirect Materials 28,875.00Direct Labor 30,000.00Indirect Materials 3,750.00Repairs & Maintenance 1,250.00Selling & Administrative ExpensesSalaries 67,050.0013th Month Pay 8,087.50Communication/Telephone 1,200.00SSS, PhilHealth, Pag-ibig 8,734.50Marketing/Advertising 500.00Office Supplies 1,250.00Electricity/Power 3,000.00Water 1,250.00Rent 12,000.00Transportation Expenses 1,500.00Repairs & Maintenance 250.00Waste Disposal 300.00Internet 1,650.00

   Total 170,647.00Add: Contingency (10%) - approximately 17,068.00

   ------------------

PROJECT COST (SUMMARY) 187,715.00

7

   SOURCE OF FINANCING

Contributions of the Partners

Afable, John Nathanael 15,642.92

Balazon, Ave Gilainne 15,642.92

Elec, Cristina 15,642.92

Esteria, Raquel 15,642.92

Manoling, Martin 15,642.92

Nebres, Arnold 15,642.92

Pagdagdagan, Diana 15,642.92Pastor, Kathleen Fatimah 15,642.92

Peleo, Mariane 15,642.92

Pimentel, James Nicole 15,642.92Porto, Cherry Ann 15,642.92

Purificacion, Madelle 15,642.92

__________TOTAL 187,715.00

8

IV. Products

Sariya Company will sell the Poche (expandable bag organizer)

primarily in Tanauan City, Batangas which is a fast-developing City of the

province of Batangas.

Company Locations and Facilities

Sariya Company chose to reach the potential customers in

Tanauan City, Batangas through leasing a commercial space. In this

matter, the company will easily reach its target market because the

location is within the center of the city itself with residential houses,

business establishments, schools and universities.

Products

Sariya Company innovates a bag organizer. Normally, a bag

organizer differs in accordance to the size of the bag. Existing sizes are

small (5 pockets), medium (6 pockets), and large (8 pockets). Our product

Poche (expandable bag organizer) is capable of fitting into different bag

9

sizes whether it is small, medium or large. It’s like having 3 bag organizers

all at the same time.

Poche (expandable bag organizer) have 5 pockets as the base and

3 detachable pockets as additional pockets to fit if the bag is bigger. The

size of each pocket is 4” L x 5” H. It can hold pens, keys, small notebook,

cellular phone, eye / sunglasses, hairbrush, perfume, etc. To avoid

messiness inside the bag, we are including a small bag / pouch to hold

items such as make-up / cosmetics which has 6” L x 7” H.

V. Markets and Competition

Sales Trends

Sariya Company after its first year of operation will increase its sales by

21.25%, this trend of increase in sales will continue. On the 5 th year the

company’s sales will increase to 55.10%.

10

Industry Analysis

In this fast paced world where things seem to be instant, where

sped is becoming the name of the game it is important to find ways to

keep things organized.

The industry for the bag organizer is not well known because there

are few producers in the Philippines. Most of the producers are not known

and are of small scale enterprises mainly marketing their products through

the internet, yet there are also some large brands in the industry that

market their organizers through malls and other retail outlets.

Like other industries where women are the chosen target market,

the bag organizer industry is influenced by current trends and styles of

what is fashionable and stylish. Style is really a factor for the target market

of this industry but quality and functionality are of the same importance.

The market for this industry is broad, large and still growing larger

yearly. The growing demand is not satisfied by the few producers, the

absence of the producers motivate our firm producers. The absence of the

11

producers motivates our firm to go and penetrate the already existing but

still open market.

SWOT ANALYSIS

STRENGHTS

A new innovated product

There is minimal number of sellers makes an open and uncongested

market.

Good quality

Reasonable prices

WEAKNESS

Poche is completely new products and our brand is unknown.

Most of them customers avoid using trying new products.

Different taste and preferences of people.

12

OPPORTUNITIES

To produce an expandable bag organizer in the market.

Can offer job opportunities

A source of information and knowledge.

Possibility of good profits.

To be known in the business world

Expansion/ and extension of the product.

THREATS

Imitation

A small change in the focus of our competitor might wipe out any market

position we achieve.

13

Suppliers

The raw materials used for the product will be supplied by:

DOUBLE A CURTAIN STORE

PasilioV 24-26 L 47-49

Yangco Market, Ilaya, Binondo, Manila

02 242-2820 or 0917-886-2880

FLOR TEXTILE STORE

Yangco Market, Ilaya, Binondo, Manila

02 241-8367

14

Market Analysis Summary

Tanauan City is a neighboring city of Sto.Tomas and Lipa. The city

is the hub of a metropolitan area with students and working girls of 45,674

people ages 16-60 years old as of population census in the year 2010.

There are many schools and universities in Tanauan. Many offices related

to the city government and a booming business community.

Tanauan City has one of the highest percentage of college students

and working girls and is generally regarded as one of the progressive city

in Batangas.

Poche (expandable bag organizer) is an ideal business for

Tanauan City given a market of this size and demographics.

The business has a potential to more than P1.5 million in gross

sales by the 5th year of operation.

15

Competitive Analysis

Most of the people in Batangas are not aware of a bag organizer,

although it already exists in the market. The lack of awareness is due to

the lack of sellers, people do not really have a mental picture of the

product. The minimal number of sellers makes an open and uncongested

market. This gives us the freedom and flexibility in pricing and allows us to

launch activities to create awareness.

There are companies that are selling bags with numbers of pockets which

is common nowadays in the market. Those kinds of bags are seen at

cose, jellybeans, heartstrings in different department stores. On the other

hand, some of them sell their products through the internet. The internet

will enable us to reach a large number of customers that we would not be

able to reach using a stall.

Though the internet enables us to reach more customers, it also entails

additional cost for delivery.

16

Competition and Buying Patterns

Since the consumers in Batangas are not familiar with bag

organizers, certain efforts are needed to familiarize the people.

Promotional activities have to be launched to introduce the product.

On the other hand, customers today are more practical in terms of

pricing, quality and styles. Buying a low price product which near out on a

single use that is so sickening for the Filipino buyers who want to save

money.

VI. Marketing

Marketing Strategy

Sariya Company will promote the product Poche through the use of flyers

that will be distributed to people and tarpaulins containing the actual

picture and details about the product. Another plan is to join different

activities for teen entrepreneurs especially in public places like malls.

17

The use of internet will be maximized by creating a website where we

could provide the consumers with information about our product and

persuade them to buy our product.

Target Markets and Market Segments

Our target markets are women with the age of 16-60 years old

specifically students and working girls that have the purchasing power.

The potential customer represents a demographic group of people who

are employed and have the capacity to buy. With regards to this, we as

the producer may easily come up with new ideas to address the needs of

our customers.

Pricing Strategy

Sariya’s Poche (expandable bag organizer) will be offered at the

price of P285.00. The company used the “cost-plus pricing method” as the

basis of the product’s selling price. This pricing policy determines the cost

of the goods to the company, adds a percentage to cover expenses and

profit, and arrives at the selling price.

It was also based on the P270.00 standard price in the market, but

it does not mean that their product has the advantage on price. The

company’s price is more affordable for the consumers in the sense that

18

the market’s existing bag organizer has standard sizes for a certain bag

sizes. Thus, acquiring the different sizes of bag organizer is way much

more expensive. Sariya’s Poche (expandable bag organizer) can fit

different bag sizes because it is expandable. It’s like having 3 bag

organizers for the price of one.

Promotion Strategy

Sariya Company will promote its product through:

Promotional flyers will be distributed to all customers.

An additional item such as pouch will be included for every

purchase of the Poche (expandable bag organizer).

Demonstration through the use of E – Communication programs.

This will be done through the help of technology and also by

promoting using of internet and by texting common friends to

market the product.

A store window display to call the attentions of the passersby.

Participation through trade fares and exhibitions.

Offered Promos to Customers:

Buy 3, get 9 freebies – when a customer purchases three (3) bag

organizers within nine months, automatically, the customer will get

one (1) free coin purse.

19

Bulk Buying Program – the customer that will buy at least fifty (50)

bag organizers will receive 1 free item in every ten (10) pieces

bought, thus, a total of five bag organizers in every bulk purchase.

Distribution Strategy

Primary distribution of Poche (expandable bag organizer) is through

leasing a commercial space as the store itself.

Secondary distribution is through the use of a sales agent.

Additional distribution will be through the use of internet.

Sales Projections

Sales forecast are based on projections made for the company’s

sales. There is very little threat from competition that may affect sales. Our

sales are mainly from the direct selling, through the agent sales and sales

derived from the internet

20

Sales Forecast

SARIYA COMPANYProduct: Poche (expandable bag organizer)

SALES(In peso)

YEAR2011 2012 2013 2014 2015

Units sold in pieces 2,850 3,570 4,170 4,770 5,940

Selling price per piece 285.00 290.00 295.00 300.00 305.00

SALES 812,250.00 1,035,300.00 1,230,150.00 1,431,000.00 1,811,700.00 (to income statement)

21

VII. Management

The success of the business depends on the management of the

company. All people in the organization will dedicate their skills, abilities, talents

and acquired knowledge. The growth of the business lies with the performances

of the management team together with their subordinates. Job specification of

each position should clearly identify to avoid the poor performances. It is

necessary that each member of the management will be responsible with each

duties and assigned tasks.

The management team composes the following with their respective

duties and responsibilities:

General Manager is responsible for all areas. The general manager is

responsible for effective planning, delegating, coordinating, staffing, organizing,

and decision making to attain desirable profit making results. They are primarily

responsible for guiding employees in achieving the goals and ambitions of the

organization. They ensure that all processes and practices are working in a

proper manner for an organization.

22

Production Manager is involved with the planning, coordination and control of

manufacturing processes. A production manager ensures that goods and

services are produced efficiently. They ensure the correct amount is produced at

the right cost and at the right level of quality.

Production Supervisor works under the direction of a manager to make sure all

employees in a particular area of a factory are producing as much as they are

expected. A production supervisor also sees that the conditions for work and

production are optimal, both for the people involved and in what respects to

waste and quality.

Purchaser is responsible for ordering inventory, supplies, equipment and

services for all departments and divisions. The purchaser is responsible for

securing the best price for all purchases without jeopardizing quality. The

purchaser is responsible for generating and submitting purchase orders in

accordance with the company policies and procedures.

Quality Assurance Inspector works primarily involves sampling, measuring and

verifying that manufactured products meet pre-determined quality standards.

Utility and Maintenance Personnel shall be responsible in maintaining wellness

of the condition of the utilities, machineries or equipment being used in the

production. He keeps the premises in proper order and use appropriate materials

and equipment to complete assigned work at established procedures.

23

Production Operators is responsible to maintain the production process so

work continues in a safe and productive manner. These duties may include

staging materials for an assembly line, recording production statistics, monitoring

equipment operation or assigning tasks to production staff.

Sales and Marketing Manager is responsible in analyzing, planning and

implementing marketing and sales activities. They also monitor how target

markets respond to marketing efforts. Ultimately, their goal is to increase profit

and retain loyal customers.

Marketing Personnel shall be responsible in creating advertising, good public

relations and an intense dedication to informing the public about a product's best

qualities. A marketing assistant's exact responsibilities vary by company, but the

basic elements of the job are the same everywhere.

Sales Representative is responsible for selling products to the consumers,

usually within a specified geographical location. They also have to be energetic,

friendly and enthusiastic, and have a positive attitude.

Accountant handles a variety of issues dealing with money, finances, profits,

expenditures, payrolls and sales. An accountant's duties can vary greatly

depending on his client and his client's financials. An accountant's job can range

from performing audits to ensure an individual or business is being truthful in its

24

tax documents, to handling the payroll of a small business, to analyzing a

business' ledger, or overall financial health.

Budget and Control is responsible for the handling and controlling inflows and

outflows of cash by checking daily cash sales and even credit transactions. He

also prepares records and releases payments for the salaries of the employees.

Human Resource Development Manager shall be responsible for implementing

strategies and policies relating to the management of individuals. They shall

carry out a thorough job analysis to determine the level of skills/technical abilities,

competencies, flexibility of the employee required etc.

Research and Development Officer communicates the strategic plan to

subordinates in regard to business expansion, acquisition and marketing. He sets

goals for attracting new business, and guides the development staff in the area of

product research and development. The business development officer also

formulates focus group research and testing to determine how a new product will

be received.

Security Officers maintains security and safety of people and property in

assigned work place area. He keeps records to incoming and outgoing

employees and also visitors.

25

VIII. Financial Data

Financial Plan

Sariya Company will finance its growth through cash flow.

Expansion will begin in fifth year that will include adding another location,

an increase in corporate sales, and capital expansion through additional

investment to support the introduction of our own brand of bags.

Seasonal Data

Sariya Company’s Poche (expandable bag organizer) would be

much viable in the months of June and July for the reason that our product

is suited for students and professionals. December could be also a

saleable month because our product could be a gift item suitable for the

season.

26

Break-Even Analysis

The tables and chart shows break-even analysis for the first year of

operation. The producers require sales at approximately P625,919.00 for

the first year alone. General and Administrative expense depreciation

which amounts P443,088.00 and gross profit of 70.79%.

Break-Even Analysis

P443,088.0070.79%

= P625,919.00

Projected Profit and Loss

Profits for the next five (5) years are projected as follows:

27

2011 : P 575,011.252012 : P 723,614.002013 : P 866,670.452014 : P 994,824.542015 : P 1,288,289.45

28