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1.0 EXECUTIVE SUMMARY
Mr. Image is a graphic designs and multimedia services firm, a partnership owned and
operated by Ariel Cabinbin, Niel Sumagaysay, and Ian Jay Tomas. Mr. Image will operate out of
a small office at Pantua Village, Baranggay Zone 3, Koronadal City, South Cotabato.The firmoffers video editing and T-shirt printing services. They will also offer making of customized
memorabilia such as tumblers, badges, mugs and bag tags. Printed T-shirts and memorabilia
will be available for sale.The firms targeted customersincludethe people, institutions and
organizations of Koronadal City primarily NDMU and STI as these are the most accessible
potential customers in the firms location.
Mr. Image aims to offer cheaper yet excellent service with a personal touch, and offering value-
added services related to the customers.The firmwill maximize the utilization on networking
and referrals most importantly its advertisements to develop visibility for the company.Through all of these, prospective customers will turn the figures of sales, shown in figures in the
financial plan, into reality. Moreover, the payback period is eight (8) months and the firm will
generate P298,633.98 net income in year three.
Table 1.0Highlight in the Income Statement
1
-
200,000.00
400,000.00
600,000.00
800,000.00
1,000,000.00
1,200,000.00
1,400,000.00
1 2 3
Sales
Gross Profit
Net Income
Year Year Year
P
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1.1 Vision
Mr. Image plans to become known as the most profitable premier graphic designs and
multimedia services firm in the Koronadal City after three years.
1.2 Mission
The Mr. Images mission is to provide the customers with the best and practical graphic
designs and multimedia services in the city. We aim to offer cheaper yet excellent
service with a personal touch, and offering value-added services related to the
customers.
1.3ObjectivesThe objectives of Mr. Image include:
1. To be profitable within the first year of operations.2. To achieve customer satisfaction by providing services exceeding customer's
expectations.
3. To make the customers or clients feel at home transacting and a part of thecreative process.
4. To create a firm that provides the target customers with quality services andprovides the owner with a flexible, creative, fun, and profitable business
opportunity.
1.4Keys to SuccessThe keys to success are:
o Professionalismo Creativity and Competenceo Love of worko Good customer relationship
2.0 COMPANY SUMMARY
2.1Business Description
Mr. Image is a graphic designs and multimedia services firm, a partnership
owned and operated by Ariel Cabinbin, Niel Sumagaysay, and Ian Jay Tomas. Mr. Image
will operate out of a small office at Pantua Village, Baranggay Zone 3, Koronadal City,
South Cotabato.
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2.2 Background
The owners, Ariel, Niel, and Ian, are currently 5th
year Bachelor of Science in
Accountancy students of Notre Dame of Marbel University. They are all knowledgeable
and well-equipped in graphic designing.Ariel is good in managerial skills evidenced by
the various school events he has facilitated and managed. Ian has designed various
event invitations and program in the Accountancy department. For the past school
years, Niel has rendered video-editing services to different organizations inside and
outside NDMU. These have made him a premiere video-editor in the campus for various
events.Hence, their skill set and capacity as a creative graphic designer and multimedia
service provider in the campus justify their partnership creating Mr. Image.
2.3 Business Name
The partnership is named as Mr. Image was the idea of Ariel approved by Niel
and Ian. The tagline We create the BEST simply because we wanted to create the
image of best graphic designing and multimedia services business in the city. Thus,
Mr. addresses the founders and Image represents the graphic design and
multimedia services being offered.
2.4 Business Logo
The overlapping letters M & r represents the founders working together asthey operate the partnership. Grammatically, theperiod emphasizes the Mr.
addressing the founders. The color transition of the Mr. from dark blue to light blue
means transformation from good services to bestservices which is undertaken as the
firm operates. The two horizontal lines emphasize Mr. Image rendering Graphic
Design and Multimediaservices.
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2.5 Start-up Funding
Table 1.2 Start-up Expenses
Note that under Other Assets are as follows:
Electric Fan P2400
Furniture and Fixture 6500
Internal refurbishment 2000__
Total P10,900
Start-up Expenses
Business Permit and Licensing Fee 5,000.00Posters and Flyers 5,000.00
Radio Advertisement 5,000.00
Office Rentals (3 months) 10,500.00
Internet Subscription (3 months) 3,000.00
Total Start-up Expenses 28,500.00
Total Start-up Assets
Cash Required 8,671.36
Start-up Supplies and Inventory 36,833.08
Promotional Products 5,000.00
Laptop 52,000.00
Accumulated Depreciation Laptop (52,000.00)
Other Assets 10,900.00
Long-term Assets 30,095.56
Total Assets 91,500.00
Total Requirements 120,000.00
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Table 1.3 Start-up Funding
Start-Up Funding
Start-up Expenses to Fund
91,500.00
120,000.00
82,828.64
28,500.00
8,671.36
-0-
20,000.00
20,000.00
33,333.33
33,333.33
33,333.33
100,000.00
120,000.00Total Funding
Total Liabilities
Partners Capital
Sumagaysay, Capital
Cabinbin, Capital
Tomas, Capital
Total Planned Investment
Long-term Borrowing
28,500.00
Start-up Assets to Fund
Total Funding Requirements
Less: Assets
Non-cash Assets from Start-up
Cash Requirement from Start-up
Less: Start-up Expenses to Fund
Cash Balance on Starting Date
Liabilities and Partners Capital
Liabilities
Current Borrowing
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3.0 SERVICES AND PRODUCTS
Mr. Image offers multimedia services including video editing and video compilation. The
firm also offers T-shirt printing services including printing white and colored T-shirts.Another is
making of customized memorabilia such as tumblers,badges, mugs and bag tags. Printed T-
shirts and memorabilia will be available for sale in the firms office.
Figure 2.0 Sample Designs and Outputs
White T-Shirts
Colored T-Shirts
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Badges
Tumblers
Bag Tags
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Mugs
4.0BUSINESS ENVIRONMENT ANALYSIS4.1 Industry Analysis
4.1.1 Industry Description
This industry analysis will aid in researching the industry in which Mr.
Image Graphic Designs and Multimedia Services will be located. This is a graphic
design and multimedia industry. We can also determine how the company will
compete in the industry.
4.1.2 Industry Trends
Koronadal City is a 1st class component city in the Philippines. It is
endowed with rich natural resources and has the potential of becoming one of
the fastest growing local economies in the country. Since it is a growing economy
it is expected that many businesses in the city are to be established. Graphic
design and multimedia is a growing industry in the said locality. According to an
article about Graphic Designs and Multimedia Businesses, it is expected that the
graphic design and multimedia will increase to 13% in business from 2008 to
2018. This growth is due to constantly increasing demand for such services and
other multimedia applications. Graphic designers with strong animation and
design skills face the best prospects. Moreover, competitors in the city pose a
low threat because it is still a growing industry that means that competitors are
expected in the future. According to the Department of Trade and Industry
graphic design and multimedia industry is still new in the locality. With a large
population in the city, there is a high demand for such skills in order to adapt to
the fast changes in technology.
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4.1.3 Profit Potential
Profit potential can be determined by performing a five forces analysis.
There are five forces that threaten the performance of the graphic design and
multimedia industry: rivalry, buyers, substitutes, new entry, and suppliers. A
more in depth analysis follows.
Substitutes pose a medium threat to the industry. Substitute to graphic
design and multimedia services include graphic design software that will be able
individuals to create their own designs without the need of our services.
Although, there are graphic design software that will aid their needs, skills and
knowledge are required to have such quality output.
New entrants pose a low to medium threat to the industry. This is a
growing industry, so there will likely be many new entrants into the industry inthe future because it is ripe for innovation. However companies entering will
still face challenges. To compete with this industry, companies would need large
amounts of funding. They would also need marketing and networking in order
to gain consumer knowledge and demand. New entrants would also have to
endure these expenses to differentiate their own products and gain the support
of consumers.
The industrys rivals consist of all businesses that produce the means of
graphics design. The threat of rivalry is somewhat low. The number and balance
of competitors is low. Since this is a relatively new industry that is just beginningto realize growth, there are no strong competitors. The fact that the industry is
growing is another reason that rivalry is low. Therefore, there is room in the
market for the new competitors.
Suppliers pose a low threat to the graphic design industry. Suppliers for a
graphic design can be easily obtained and the demand for this kind of industry is
growing. Since, it is still growing, the buyers for this kind of industry is relatively
not that much. There seems to be a large quantity of suppliers, so this is not a
large threat.
Buyers exert a somewhat strong force in the graphics design and
multimedia industry. In this case the buyers/customers are those who use and
purchase some form of products and services. Consumers have the option of
choosing where to acquire such services depending on their preferences.
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After evaluating the five forces model on the graphics design and
multimedia industry it can be concluded that most of the forces are moderate to
high, therefore threats in the industry could greatly affect industry profitability.
The only low force was rivalry among competitors, and this is because the
industry is growing. It is likely to grow more in the future therefore the industry
is ready for innovation. The graphics design industry is a realistic place to start
and be successful in a new venture.
4.1.4 Competitive position within target market
The graphic design and multimedia industry deals with direct, indirect,
and future competitors. Direct competitors are those who offer identical or
similar products, such as other graphic design businesses that are already
established. Indirect competitors offer close substitute products, such as
companies providing a similar means of services. Future competitors are thosewho are not yet direct or indirect competitors, but could be at any time.
Another competitor is the status quo. People are generally resistant to change,
and often would rather keep their money than spend it. To combat this, a
products utility must rise above the cost, and consumers must be educated.
Staying competitive with other companies in this industry will require
competitive price and quality, effective marketing, continuous improvement, as
well as a variety of other factors. Since this is a growing industry there are sure
to be new entrants into the market in the future.
4.2 SWOT Analysis
Strengths
A convenient office that is accessible to customers as well as gives off theperception of creative, quality design, implying a skilled service provider.
A unique combination of both creative and business sense. Cheaper products and services prices than existing graphic designs and
multimedia services businesses.
No competitor identified along the location of the firm. Working attitude of the owners is undeniably great. Payback period does not take years, only eight months to be exact.
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Weaknesses
We cannot accommodate bulk orders due to lack of adequate capitalIncreasingly limited amount of time for marketing activities as more and more
time is needed to finish projects because of limited manpower.
Opportunity
A growing market that does not seem to be focused on attracting a targetcustomer segment.
The ability to generate future business by leveraging the technologicaladvances of the Internet.
An industry that is not significantly affected by slumps in the economy. An industry that can help to boost our local economy.Threats
Competition from local competitors who offers same type of products andservices.
Significant increase in ease of use of graphic design software that allowsindividuals to design their own graphical pieces.
5.0 Marketing Plan
5.1 Target Market
The Mr. Image will be targeting the primary and general market. The general market
includes people, institutions and organizations of Koronadal City.
People include students, teachers, personnel, employees, employers,professionals, and all other normal persons not an institution and an
organization in nature. Institutions include schools, hospitals and more. Organizations include government organizations and sectors, firms/businesses
and more.
The primary markets are NDMU and STI, includingall potential customers from these
institutions. The location of NDMU and of STI is very close to the location of the firm
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that is at Pantua Villagewhich is very accessible to them as the firms primary markets.
Aside from the location, the demand on the services offered by Mr. Image is higher in
schools vicinity compare to other commercial locations. According to our interview with
the manager of Campus Art, a premier graphic designing firm in the city, approximately
80% of their sales represent the sales to customers from schools.Additionally based on
our personal experiences and observations as students, the graphic designs andmultimedia services are in demand to students for school requirements, school events
and other personal reasons such as trends and likes.
5.2 Marketing Program
The firm will be using the social network sites to advertise its products and services
such as facebook, multiply, twitterand tumblr.According to Social Media Statistics,
93.9% of the Filipinos used social networking sites. Thus, this would be the most
effective means of advertising the firm.Posters and flyers will also be posted and
distributed primarily along Alunan Avenue and Pantua Village. Radio advertisement will
also be used.
5.3 Target Market Segment Strategy
Networking. The networking will be based on leveraging Mr. Images personalrelationships. Ways of networking include sending out notecards to all
acquaintances announcing the opening of the firm, periodically meeting with
the group of people personally acquainted with the founders such as
classmates, teachers, friends and others. This will establishworking network
and a means to find out who this person knows within the target market thatthe firm will try to turn into customers.
Client referral. Thenetworksthat the firm could establishwill be the source ofreferrals. Recognizing that referrals will be a good source of new customers,
the firm will work very hard to satisfy all of these customers. By making sure
that the firm will exceedcustomers expectations increasing the likelihood to
receive referrals from satisfied customers, the firm will be able to expand its
networks attracting public relations that will be the aid in achieving and
maintaining increasing sales.
Targeted organization and institution acquisition. This is the researching andstrategic formulation to attract a chosen organization and institution tobecome a customer aside from the primary market, NDMU and STI. The firm
will put together a list of 20-30 organizations and institutions that would be
excellent customers. Once these have been identified, the firm will devise a
strategy to target these companies as customers by initially determining what
value can persuade them. Eventually, the goal is to be able to meet with the
decision maker of the firm and present them with a portfolio of Mr. Images
sample service and product as well as the proposed value they can offer them.
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5.4 Competitive Analysis
Table 1.4Comparative illustration of Mr. Images product and services prices with the
competitors within and outside its location.
Located along Pantua Village Not Located along Pantua Village
Products and
Services (per unit)
Mr.
Image
No
Competitor
Campus
ArtIdentitee
IDEF
Studio
Multimedia
Video Editing P250 - - P300
Video Compilation P100 - - P200
Graphic Designs
White T-shirt Printing P180 - P200 -
Colored T-shirt
Printing P180-
P250 -
Printing without T-shirt P70 - P80-P100 -
Memorabilia
Tumbler P150 P200 P160 -
Mug P140 P200 P150 -
Badge P20 P100 P50 -
Bag Tag P45 P100 P60 -
Illustrated on Table 1.4, all prices of Mr. Images product and services offered
are lower or cheaper than those of the competitors. Thus, this justifies the firms aim tooffer cheaper yet excellent service.
6.0 OPERATIONAL PLAN
6.1 Location
It is vital that the graphics design business has a storefront facing onto the main
street. The goal is for the clients to be able to see the premises and lessen the difficulty
of finding the business location. We will be renting 4 by 8 square meters (See Fig. 1) fully
serviced space at cost of Php 3,500 per month. This would serve as a combination ofoffice, warehouse and manufacturing space for the business. Also, we will need to
spend Php 10,900 on internal refurbishing, including furniture and fixtures like chairs,
desks and other office furnishings. We plan to do some of this work ourselves.
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6.2 Choice of Location
We intend to locate within the Pantua Village, Zone III, Koronadal City (See Fig.
2), since this is close to the city center with a high density of both residential andbusiness premises. The pavement is wide, so people can stand and look in the window
without being in the way of other pedestrians. Among all the location available, this has
a lower rental expenses. Also, there is no competitor as to the services to be rendered
by the business in the location. It would also be accessible to students, specifically the
Notre Dame of Marbel students and STI students and some other residential clients of
Pantua Village.
6.3 Hours of Operation
The online shop will be available for 24 hours a day and orders through e-mailswill be checked daily. The business will be operating from 9am until 6pm to cater those
clients who are busy during the day. We want to be available so that the clients would
consider us as their first point of contact with an informed friendly service.
We believe that since our clients will mostly be students, off-peak-hours access
to our services is also a key way in which we can differentiate ourselves from other
graphic service providers.
6.4 Equipment
We will be using Epson Sublimation Printer which cost $440 (a total of Php
19,360), free of shipment from Epson Supplier Online. We will also be using a Button
Press used to make badges which cost $79.99 (a total of Php 3,299.56), from the same
supplier. Also, a separate sublimation heat press for mugs, plate, hat, and t-shirt which
cost $169 (or Php 7,436) is to be used to transfer prints from the sublimation paper to
the printing canvass.
We will also be using two Laptops, donated by the partners, one for lay-outing
the designs for printing and the other is for editing and compiling videos.
A telephone line will be installed, together with wireless fidelity (Wi-Fi)
connections, in the business premises to allow customers make orders through the
telephone or internet.
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As a graphics service provider, it is essential that we should be updated with new
trends so the designs and lay-outs will be based on what is new and trendy among the
target clients.
6.5 Labor
Organizational Structure
The partners will decide among themselves one as a managing partner, but all of
them would be basically in charge with the operations. The managing partner will be
responsible for overseeing the day-to-day operations of the business. There will be one
assigned in the reception area to welcome the customers and to answer telephone calls.
All the three partners are knowledgeable of editing, lay-outing, creating, designing the
products based on customers demand.
The partners shall divide any profit or loss equally. Withdrawals shall only be
allowed to each partner after six months of operation.
Our dress code will be one of our customizable printed shirts with our logo in it
to give customers that feeling that our shirts are wearable, durable and of greater
quality prints. We plan to start with a staff of three, which would be the partners. We
plan to be operating with an additional staff during the 3rd
and 4th
year of business.
6.6 Manufacturing and Service Process
6.6.1 Raw Materials and Key Suppliers
6.6.1.1 Printing Services
Most of our raw materials will be obtained from a single supplier
in Davao City, from Starmark Enterprises.
Managing
PartnerPartner Partner
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Total amount must be fully paid in their BDO account before the
delivery of orders.
Table. 2 Prices of Products bought from Supplier
Raw materials for printing will be obtained from the same
supplier, which includes different materials and textures for t-shirt
printing and also other materials like t-shirt, mugs, plates, tumblers and
etc, which would costs us a total Php 36,833.08, including the freight.
Such order composes of the starter print materials.
All raw materials will be stored at the office. There would be a
compartment within the office for storing the inventories.
6.6.1.2 Video-Editing and Multimedia Services
Most of the raw materials for this service would require
knowledge and creativity and nothing else, which is why internet
connection has a vital part for this service.
6.6.2 Finished Goods
All the finished goods will be stored at the office. Some of the products
will be displayed in the counter for sample purposes.
Order Distribution Process
Price QuantityWhite Shirts 75.00 1
Colored Shirts 85.00 1
Tumbler 60.00 1
Mugs 35.00 1
Badges 10.00 1
PVC Board 50.00 1
Rubber 5.00 1
Ink 2,199.56 4x100ml refi ll ink
Sublimation Paper 1,141.80 100 sheets
Order
Conceptualization
Gaining ideasfrom clients
Introduce owndesigns
Printing Distribution
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6.6.3 Order
Order can be done online or through our main office. Online orders are
through the official page in the facebook to be maintained by the business. An
order form shall be provided in the official page requiring the following
information from the customers: full name, email address, contact number,
product code/ color (provided in the official page), size (also provided in the
official page), mode of payment, shipping address, and additional message.
Order through the main office is done traditionally.
6.6.4 Distribution
6.6.4.1 Online Orders
For online orders, distribution of the product would be through To Go
shipping for customers outside Koronadal City. The lead time for online
orders would be 3 5 days after the date of order, depending on the
customization and number of orders. Freight cost would be inclusive in
the price of the finished product. Payment must be paid full through our
BDO account before delivery of the product.
6.6.4.2 Local Orders
For local orders, distribution of the product would take place in the
office. The lead time for local orders would be 2 days after the date of
order, depending on the customization and number of orders. Payment
would be at the time of distribution.
6.6.4.3 Bulk Orders
For bulk orders, the lead time would be 1 week for t-shirts ranging from
10-20, and 2 weeks for t-shirts ranging from 20 and above, after date of
order. Lead time may change based on the multiplicity and number of
orders above the quoted number.
6.6.5 Quality
The quality of the product will be measured through the number of
errors encountered per batch processing. The less error, the higher the quality of
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the finished product would be. The raw material used in making the finished
products is of high quality which is ensured by the supplier.
The quality of the product will be controlled through proper checking of
the quality of the raw materials used. The business would only purchase raw
materials from those suppliers who have already grounded its name in supplying
the raw materials needed in making the finished products.
Surveys are given to customers after 3 months of operations to evaluate
the quality of the products and services provided by the business. Comments
and suggestions are encouraged from clients to improve better the business.
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