Chapters 1 3 Final Na Talaga 4

SAINT BENILDE INTERNATIONAL SCHOOL (CALAMBA) INC.
Crossing, Calamba City, Laguna

ACCOUNTANCY, BUSINESS AND MANAGEMENT STRAND 1
Chapter 1
PROJECT BACKGROUND AND HISTORY
Soap, a very saleable commodity, is a cleaning agent that is very effective at
lifting oils and greases from surfaces such as skin, fabric, and floors. The frst soapmakers
were the Babylonians, Mesopotamians, Egyptians, as well as the ancient Greeks and
Romans. Soaps became very popular in the Philippines once the Americans “bought” the
Philippines and occupied our country. Since, Filipinos are known for maintaining
cleanliness in their bodies, they became fond of buying cleaning agents such as soaps as
cosmetics or drugs for improvements and treatments for the skin.
As a result, the need for soaps to provide freshness and improvements on the skin
became a necessity especially to those who are really conscious about their bodies.
Moreover, it is a desire for everyone to avail soaps that are safe, effective, and most
importantly, affordable.
Because of this, the proponents have come up to the idea of creating soaps that are
unique, cheaper, yet efficacious to the potential customers of the product that will be
produced.
The name of the product will be Fysikós Soap. The word Fysikós is a Greek word
meaning natural because the ingredients that will be used are natural fruit extracts of Ripe
Papaya (Carica papaya), Tomato (Solanum lycopersium), Cucumber (Cucumis sativus),

and Calamansi (Citrofortunella microcarpa). Honey and coconut oil are also added on the
extracts to increase the lather in soap.
Papaya, being popular for containing an antioxidant, protects the skin by reducing
skin damages. It is one of the most used ingredients in making soaps because it nourishes
the skin and boost healthy effects of the soap.Tomato is also used as an ingredient for the
proponents‟ soap because it brings a lot of benefits on the skin. It can increase fairness,
adds glow to the skin, tightens pores, and can cure acne.Cucumber, on the other hand,
contains almost 96% water that can help to soothe and hydrate the skin. It can also help
deal with nasty skin breakouts. Calamansi or Calamondin is an abundant source of
antioxidant and vitamin C wherein its acid content serves as a natural bleaching agent for
the skin. It is also an anti-bacterial agent and can prevent/fight body odor. In addition,
coconut oil and honey moisturize and hydrate skin.
Overall, these natural ingredients help rejuvenate the skin, and produce fresher,
smoother, and brighter skin. In other words, the soap that will be produced would be an
all-in-one soap which can bring convenience to the users because of its very affordable
price yet doesn‟t contain any chemicals that may bring harmful effects on the skin.
The proposed business will be located at Crossing, Calamba City Laguna which is
a good place to sell the products because ofthe mass number of people with high market
acceptability. The proponents of the study are as follows: Dezza Austria, Shean Barbin,
Kim Legaspi, Erika Maitim, and Nila Mendoza, who aim to provide every Calambeño
and Calambeña, safe body soap that will make them look and smell fresher every day.
Chapter 2
MARKET ASPECT
The market aspect will serve as the basis of the financial section through the
projected demand. This includes the product description, demand and supply analysis,
market share, price study, marketing program, factors affecting market and channel of
distribution.
Product Description
The proponents formulated a soap which contains all natural and organic
ingredients that will really help people to make their skin healthier. The proposed
business will be the production of Fysikós Soap. It is composed of fresh and natural fruit
extracts of Calamansi, Cucumber, Tomato and Ripe Papaya. Honey and Coconut oil are
also added to the solution to add suds to the soap. It will be molded in an oblongated
molder to make it look fine and easy to hold onto. They decided to use natural and
organic ingredients so that it is expected that it wouldn‟t be harmful for the users. Maybe,
there are some people who are allergic on the ingredients used that‟s why the proponents
will put precautionary measures, warning and directions at the back packaging of the
soap.
Fysikós soap will give you not just an instant glow but a healthier skin. You
wouldn‟t need to undergo expensive skin sessions and medications because Fysikós Soap
will provide it all; removes dead skin cells, rejuvenates, whitens, moisturizes, hydrates,
nourishes, smoothens and soothes skin, tightens pores, fights acne or pimples, anti-
bacterial, fights body odor, cleanses body dirt, relieves dark spots and blemishes, and
treats oily skin.By just determining the ingredients that are used to make the soap, you‟ll
immediately know what are the benefits you can get from it.
The purpose of the study is to present a proposal which seeks to identify whether
a proposed product is feasible. The business will be located at Crossing, Calamba City
Laguna which has a large number of populations. Therefore, marketing aspect will be fair
enough because people will think that they can maintain their skin healthy and beautiful
without using any expensive medications and clinic sessions.
Demand Analysis
This involves the estimation of market demand for the outputs of the proposed
project. It involves the identification and analysis of demand determinants and estimation
of future demand of the current undertaking.

Table 1.1
Total Population of Calamba City Laguna for the Years 2014-2018
Total Population Increase/

Year Percentage
of Calamba City Decrease
2014 438,012 - -
2015 454,486 16,474.00 3.62%
2016 468,058 13,572.00 2.90%
2017 482,035 2.90%

13,977.00
2018 498,667 16,632.00 3.34%
Average Increase 3.19%
Table 1.1 shows the total population of Calamba for the years 2014-2018. Year
2015 denotes the largest increase of population with the total percentage of 3.62% while
on the year 2016 and 2017 has the lowest percentage of increase/decrease in population
with 2.90%. It can be noted that the average increase/decrease of population for the past
four (4) years up to the present is 3.19%.
Table 1.2
Projected Population of Calamba City Laguna for the Years 2019-2023
Projected Increase/
Year Percentage
Population Decrease
2019 514,574 - -
2020 530,989 16,415 3.09%
2021 547,928 16,939 3.09%
2022 565,407 17,479 3.09%
2023 583,443 18,036 3.09%
Average Increase 3.09%

Table 1.2 shows the projected population of Calamba for the years 2019-2023. It
shows consistent increase in the number of populations, hence the same goes with its
percentage. Percentage increase is de rived from subtracting the projected current
population to the previous year data. The average increase of the population is 3.09% as a
result of statistical straight line method.
Table 1.3
Projected Demand
Market Target Frequency of Projected

Year Annual Demand
Acceptability Population Acceptance (in pcs.)
2019 65% 514,574.48 81% 269,256.24
2020 65% 530,989.40 81% 279,565.92
2021 65% 547,927.97 81% 288,484.07
2022 65% 565,406.87 81% 297,686.72
2023 65% 583,443.35 81% 307,182.92
Table 1.3 shows the total projected demand in pieces for the years 2019-2023. It
can be noted that the projected demand increases over the years in relation to the
increasing population. The researchers were able to obtain the 65% market acceptability
based on the survey instrument utilized with 81% frequency of acceptance. The projected
demand above implies that the total demand for the Fysikos Soap increases for years
2019-2023.
Table 1.4
Projected Demand in Pesos
Projected Price per Demand (in Increase/

Year Annual Demand
(in pcs.)
piece/pack pesos) Decrease
2019 269,256.24 36.00 9,693,224.68 -
2020 279,565.92 36.00 10,064,373.15 371,148.47
2021 288,484.07 36.00 10,385,426.65 321,053.50
2022 297,686.72 36.00 10,716,721.76 331,295.11
2023 307,182.92 36.00 11,058,585.18 341,863.42
Table 1.4 shows the total demand in pesos for the years 2019-2023. The projected
demand in pesos increases over time. Year 2021 has the lowest increase with Php
321,053.50 projected demand in pesos while year 2020 has the highest projected increase
in demand with Php 371,178.47 assuming that there would be no inflation or sudden
increase in price per pack.
Figure 1.1
Projected Demand in Line Graph
320,000.00
310,000.00
300,000.00
290,000.00
280,000.00
270,000.00
260,000.00
250,000.00
2019 2020 2021 2022 2023
Figure 1.1 showed the projected demand for the years 2019-2023. It further
showed a continuous increase in quantity demand that can be attributed to continuous
increase in population with high market acceptability.
Analysis of Demand
Demographic Data
Table 1.5
Gender of the Respondents
Sex Frequency Percentage
Female 119 59.50%
Male 81 40.50%
Total 200 100%
Table 1.5 shows that among the 200 respondents, 59.50% are female and 40.50%
are male.
Table 1.6
Age of the Respondents
Age Frequency Percentage
14-19 167 83.50%
20-28 15 7.50%
29-35 8 4%
36&above 10 5%
Total 200 100%
Table 1.6 shows that among the 200 respondents, 83.50% are 14-19 years old,
7.50% of the respondents are 20-28 years old while the remaining 9% are 29 years old
and above.
Table 1.7
Family Members of the Respondents
no. of family
members Frequency Percentage
1-2 1 0.50%
3-5 109 54.50%
6-7 66 33%
8-10 17 8.50%
11&above 7 3.50%
Total 200 100%
Table 1.7 shows that among the 200 respondents, majority of them or equivalent
to 54.50% have 3-5 family members andthe least percentage of the respondents which is
0.50% of has 1-2 family members.
 Results of survey
1. Do you use organic soap?
Table 1.8 Figures 1.2

Respondents‟
Answer %
35.50%
Yes 129 64.50% yes
No 71 35.50% no
64.50%
Total 200 100%
Table 1.8 shows that among the 200 respondents, 64.5 % of them use organic
soaps and the remaining 35.5 % respondents are not using organic soaps. As a result,
since majority of the respondents use organic soaps, there is a big percentage that the
product will be acceptable in the market.
2. Which soap do you prefer to use?

Table 1.9 Figure 1.3
Respondents‟ Answer %
Organic 129 64.50% 35.50% Organic
64.50% Non-Organic
Non-organic 71 35.50%
Total: 200 100%
Table1.9 shows that among the 200 respondents, 64.5% of them prefer to use
organic soaps. On the other hand, the remaining 35.5% respondents prefer to use soaps
that have chemical contents because these soaps are widely used and available in the
market. Hence, the proponents‟ product which is the Fysíkos Soap that is made up of
organic ingredients, has a big opportunity to be patronized in the market

3. What soap brand are you using?

200
Safeguard 83 41.50% 150
Dove 38 19%
100
Silka 29 14.50%
Kojic 32 16% 50
Palmolive 3 1.50% 0
Others 15 7.50% Safeguard Dove Silka
100% Kojic Palmolive Others

Total: 200
Table 1.10shows that among the 200 respondents,41.5%of them chose
Safeguard as the soap brand which is widely used by the people. Thus, it is also the brand
which got the highest percentage of respondents. On the other hand, Palmolive has the
least number of votes which is 1.5% only. Since the proposed business is just starting, the
proponents can make their own flag in the market. Just with its benefits, it‟ll be easy to be
on it and its amount is not pricey compared to other soap brands.
4. How much is the soap you usually buy?
200
40-60 php 110 55% 150
70-90 php 41 20.50% 40-60

100
100-120 php 33 16.50% 70-90
50
Others 16 8% 100-120
0 others
Total: 200 100%
Table1.11 shows how much money the respondents spend on their soaps.
Among the 200 respondents 55% of them spend Php.40-60 for their soap, 20.5%of the
respondents lend Php.70-90 for their soap and 16.5% of them spend Php.100-120 for
their soaps. Variously, the remaining 8% of the respondents lend more hundreds for their
soaps. Since the proposed business is an organic soap it‟ll be really affordable for the
customers.
5. Do you use soaps for cosmetic purpose/beautification?

Yes 102 51% 49% Yes

51% No
No 98 49%
Total: 200 100%
Table 1.12 shows that among the 200 respondents 51% of them use soap for
beautification and the remaining 49% of the respondents are not. Since majority of them
use soap for beautification Fysíkos Soap will fit on their everyday routine. The product is
composed of natural ingredients that can beautify your skin in a safe way since it is pure
organic and is expected not to be harmful to the skin.

6. Do you use soap for threating skin problems/ medications?
37% Yes
Yes 126 63%
No
63%
No 74 37%
Total: 200 100%
Table1.13 shows that among the 200 respondents,63% of them use soap for
treating skin problems or medications and the remaining 37% respondents are not using
soap for that kind of matter. As a result, since Fysíkos Soap is organic and has a lot of
benefits that can help the skin, they‟ll patronize and possibly choose Fysíkos as their
regular bathing soap to prevent skin problems and also for a healthier skin.
7. Given below are some attributes. Tell how important is that attribute while using soap.
Table 1.14.1
Cleaning Ability
Very Important 181 90.50%
Somewhat Important 14 7%
Neither important nor unimportant 5 2.50%
Somewhat Unimportant 0 0
Not Important 0 0
Total: 200 100%
Table 1.14.1 shows that Cleaning Ability of the soap is a very important thing to
consider in buying soaps in the market. People take a bath every day because they want
to be clean. The proponents‟ product which is the Fysíkos Soap can fit in their cleaning
satisfactions.
Table 1.14.2
Color
Somewhat Unimportant 10 5%
Not Important 25 12.50%
Total: 200 100%
Table 1.14.2 shows that among the 200 respondents, majority of them considered
color as somewhat important on choosing the soap that they will use. Since the proposed
product is an organic type of soap, its color will be natural. The proponents will not use
any artificial pigments so it will be pure natural and organic.
Table 1.14.3
Fragrance
Somewhat Important 51 25.50%
Somewhat Unimportant 3 1.50%
Not Important 2 1%
Total: 200 100%
Table 1.14.3 shows that among the 200 respondents, almost 60% of them consider
fragrance as an important thing when buying soap. The proposed product will give
everyone a fresh scent which is what most of the people really want. People take a bath to
smell fresh and cool hence, Fysíkos Soap can help them in that matter.
Table 1.14.4
Brand
Very Important 100 50%
Neither important nor unimportant 16 8%
Total: 200 100%
Table 1.14.4 shows that among the 200 respondents most of them consider the
brand name when buying soap. Since the proposed business is just starting, with its
uncountable benefits it can make its own name in the market and be known by everyone.
Table 1.14.5
Respondent's Answer %
Price
Somewhat Important 60 30
Somewhat Unimportant 4 2%
Not Important 2 1%
Total: 200 100%
Table1.14.5 shows that among the 200 respondents, preponderance of them
considered price as a very important matter in choosing soap. Most of the people depend
on the price of the soap, since Fysíkos Soap is made up of ingredients that has a
reasonable price, the product itself will be really affordable and budget-friendly to the
customers.
Table1.14.6
Packaging
Somewhat Important 51 25.50%
Neither important nor unimportant 30 15%
Total 200 100%
Table 1.14.6 shows that among the 200 respondents,majority of them considered
the importance of packaging when choosing soap. Appearance is really a thing in
everything; some people tend to disregard things, especially those that are related to
hygiene because it doesn‟t look pleasant and not properly packed. So, the proponents use
neat and clean packaging for the proposed product which is the Fysíkos Soap.
Figure 1.8
200
150
100
50
0
Cleaning Color Fragrance brand Price Packaging
Ability
Very Important Somewhat Important

Nor Important Or Not Important Somewhat Unimportant
not Important
8. (For separate or individual users of soap): How many soaps do you usually consume in
a month?
200
One 56 28% 150 One
Two 62 31% Two

100
Three
Three 65 32.5%
50 Others
Others 17 8.50%
Total: 200 100% 0
Table 1.15 shows that among the 200 respondents 32.5% of them can consume
three soaps in a month if they use soap just for themselves individually. The other
31%use two soaps in a month and 28% of them can only consumeone soap in a month.
The remaining 8.5% of the respondents use four to five soaps in a month individually.
9. (For individuals who share the use of soap within the family) How many soaps do you
consume in a month?
Respondent's Answer % 100
One 17 8.50% 80
Two 36 18% 60
Three 50 25% 40
Four 78 39% 20
Others 19 9.50% 0
Total: 200 100%
One Two Three Four Others
Table 1.16 shows the frequency on how many soaps do the 200 respondents use
within a family in a month. 39% of them can consume four soaps in a month. The other
25%of the respondents can consume three soaps in a month. 18% of them use two soaps
in a month and 9.5% use one soap in a month. The other 8.5% can consume 5-8 soaps in
just a month. As a result, people tend to use a lot of soaps in a month, so Fysíkos Soap
will take that opportunity to gain more customers.

10. Are you willing to buy our FYSÍKOS SOAP (organic soap made from fruits of
Papaya, Cucumber, Calamansi, and Tomato)?
Respondents' Answer %
19.50%
Yes 161 80.5% yes
no
80.50%
No 39 19.5%
Total: 200 100%
Table 1.17shows that among the 200 respondents, 80.50% of them are willing
to patronize and use Fysíkos Soap while the other 19.50% are not really into potentially
buying the proposed product. Based on the result, it just shows that Fysíkos Soap already
has its place in the market. People are fond of trying things that are new to their eyes and
surroundings.
Supply Analysis
Supply analysis is done to understand the supply trends and responses to changing
market and production variables. Supply analysis consider all the direct and indirect
expenses that will be incurred when doing the proposed product. This would also
determine the total capacity of the soaps that can be produced by the proposed business.
Table 1.18
Supply Analysis
Table 1.18 shows the supply analysis for the Fysikos Soap in terms of the
production capacity or the business capacity. This includes the production hours daily,
cycle time per machine, load capacity per day using two machines, and the supply
capacities daily, weekly, monthly, and yearly.
It has shown that the maximum capacity of the business in one month is
equivalent to 9,312 pieces of bar soaps. The business assumes 100% efficiency of the
machine since there are four(4) units available for operation.
Table 1.19
Projected Supply
Projected No. of Projected Projected
Year Supply/Day Operating Supply Supply
(in pcs.) Days (in pcs.) (in Pesos)
2019 388.00 312.00 121,056.00 4,358,016.00
2020 399.99 312.00 124,796.63 4,492,678.69
2021 412.35 312.00 128,652.85 4,631,502.47
2022 425.09 312.00 132,628.22 4,774,615.89
2023 438.23 312.00 136,726.43 4,922,151.52
Table 1.19 shows the projected supply of the Fysikos Soap for the years 2019-
2023. Since the projected demand has been increasing annually, it is also expected to
increase the supply.

Demand and Supply Analysis
Table 1.20
Demand and Supply Gap
Year Total Demand Supply Supply % Unmet Demand

2019
269,256.24 121,056.00 44.96% 148,200.24
2020 279,565.92 124,796.63 44.64% 154,769.29
2021 288,484.07 128,652.85 44.60% 159,831.23
2022 297,686.72 132,628.22 44.55% 165,058.50
2023 307,182.92 136,726.43 44.51% 170,456.49
Average Unmet Demand 159,663.15
Table 1.20 shows the total demand and supply gap or unmet demand for the years
2019-2023. The unmet demand increases since the total demand and supply also increase
over years. The average amount for five years in pieces is 159,663.15.
Market Share
Table 1.21
Market Share
Business
Year Demand Market Share
Capacity
2019 332,415.11 121,056.00 36.42%
2020 345,143.11 124,796.63 36.16%
2021 356,153.18 128,652.85 36.12%
2022 367,514.46 132,628.22 36.09%
2023 379,238.18 136,726.43 36.05%
Average Market Share 36.17%
Table 1.21 summarizes the analysis on market share of the Fysikos Soap for the
years 2019-2023. Based from the projections above, the highest market share can be
seenin year 2019 which is equivalent to 36.42%. Market share decreases over time since
the company maintains only its business capacity for the projected five(5) years.
Price Study
Price study shows the factors or the components that will contribute on the price
of the product. These are the cost of direct materials, direct labor, and the overhead as
well.
Table1.22
Fysikos Soap’s Price Study
Pricing (per soap)
Direct Materials (Raw Materials)
Number of packs 388
Cost of Raw Materials 5756.8
Cost per pack 14.84
Direct Labor
Number of packs 388
Salary of 4 workers a day 1240
Cost per pack 6.4
Over Head
Cost of overhead per pack 1.67

Total cost per pack 22.9
Add: mark-up 9.16
Selling price per pack: Php 32.07

Add: VAT 3.85
Php 35.92
Table 1.22 shows the overall cost of the product that the proponents have come up
with.
 Competitors’ Pricing Analysis
Competitors‟ pricing analysis impacts the price study of the proposed product
since it will be a basis on how the proponents should come up with their own pricing.
This would include the prices of the competitors‟ product.
Table 1.23
Competitors’ Products Pricing
Direct Competitor Price per box (90g)
Carica Php 66
Gluta-C Php89
Ory Spa 195

Source: Carica, Gluta-C, Ory Spa
Table 1.23 shows the direct competitors of the proposed business and the retail
price for the soaps that they sell.
Factors Affecting the Market
Factors affecting the market include all the general factors that may impact the
place where the products are bought and sold. As for the proposed business, the
proponents determined the major factors that may affect their proposed business which is
the development of Fysikos Soap. This includes the population, competitors, income
changes, and inflation rate.
Population
Population affects the market because the sizes and quantity of demand and
supply of a product in a specific area depend on it. The proposed business which is the
production of Fysikós Soap would add a variation to soaps that are already available in
the market. The Fysikós Soap can be used both by men and women because nowadays
there is no specific gender for the users of soap for medical and beautification purposes.
Another factor that will fall under the population is the age bracket for both sexes. Since
the target market of the business are people whose ages range from 14 years old and
above, it could be an advantage for the business because of the large number of potential
customers particularly for those who are really conscious about their physical orientation
considering that the Fysikós Soap offers a lot of benefits for the skin.
Competitors
Competitors affect the market as they become a threat to businesses with the same
industry. As for the Fysikós Soap, its market acceptability should be of great potential
seeing that there are really a lot of producers and manufacturers of organic soaps. As a
solution to this, the proponents of the business will improve their marketing programs
and strategies which will further be discussed on the next pages.

Income Changes
Income changes affect the market as it impacts the customers‟ purchasing power.
Of course, if a person‟s income is not that high, he/she need and should prioritize his/her
wants. The same goes to those who are unemployed. Hence, the lower the income is, the
lower the demand of the product will be. As for the Fysikós Soap, it can still have its
position in the market because its price will be budget-friendly since the ingredients used
are accessible and not costing a lot of money. Papaya, cucumber, calamansi, and tomato
are widely available in the market and these fruits are really highly recommended for
treating skin problems and improving skin.
Inflation Rate
Inflation rate affects the market because it impacts both the producers and the
consumers. As for the proponents of the business, they can plant their own papaya,
cucumber, calamansi, and tomato plant to lessen the high expenses most especially if
inflation rate goes up. If not, the proponents can also have their official and legal supplier
to avail discounts.The increase in the promotion of the product can also be seen since the
use of Fysikós Soap can be cheaper and safer for all the users.
Marketing Program
The marketing program shows the marketing strategies that will be used by the
proponents to make their proposed business have a place in the market.
Target market
The scope of market will be in the area of Calamba, Laguna. It mainly focuses on
teenagers as well as adults with the ages ranging from 14 years old and above, especially
for those who have an acne or skin problem. Also, it can be sold to persons with a low
income.
Product
The Fysikós Soap is an oblongated soap and with an orange color which is the
natural color resulted from mixing all the ingredients used. Fysikós Soap is different from
others based on its ingredientswhich are combined tomato, cucumber, calamnsi, ripe
papaya, honey, and coconut oil found in a single soap. The ingredients used in this
product help to make eliminate pimples, spots and other skin problem. It can also make
your skin brighter and smoother and gives you an instant glow and it is safe to use.
 Packaging
The Fysikós Soap is placed in a shrink wrap soap band. First, the proponents will
get enough shrink wrap, and then trim it slightly bigger than the soap. Next, fold it in the
edges and use pieces of tape to secure the cover when done folding. A heat gun can also
be used to ensure that it is safe from dirt and possible reactions when exposed to air. In
the end, put the logo in the center of the soap with the precautionary measures at the
back.
 Labeling
The soap shall be labeled with product logo and tagline Fysikós Soap, Healthy
Skin, Healthy Life.
Figure 1.12
Product Logo
Figure 1.12 shows the official logo of the product.

 Price
The Fysikós Soap costs 36php only. It has a lower price compared to other soaps
that are commercially available. The proponents may also offer promos especially during
Christmas, Birthdays of regular customers, and of course when celebrating anniversaries.
Advertising and Promotion
Since the business is just starting, the proponents can use advertising aids such as
flyers to promote their proposed products. Promotion can also be seen by creating pages
on social media (e.g. facebook, twitter, and instagram) so that it can reach a mass number
of people who are using these social media sites. These social media sites are good source
for advertisement and promotion since the target market‟s ages range from 14 years old
and above. Basically, they are the ones who widely used these sites so the proposed
product will be known and the information about the product will also spread.
Marketing Strategies that will be used on the advertisement and promotion of the
Fysikos Soap are as follows:
 Word of mouth Marketing
 The proponents will be passing the information about the product from
person to person by oral communication.
 PR(Public Relation) Marketing
 A good public relation marketing is vital. It is most important strategy
because this is a way to get to know more about our product.

 Promotional Marketing
 It can create magic for the business like the proponents‟ promo “buy 3 get
1” but there will be no problem in the proponents, income.
 Social Media Marketing
 Nowadays, most of the people use social media. It is the one of the ways
to get the customers‟ attention.
Figure 1.13.1
Facebook Page
Figure 1.13.2
Instagram Account
Figure 1.13.3
Twitter Account
 Offline Marketing
 This strategy can be simple by using flyers and tarpaulin to give
information for costumers about the product with an affordable cost.
Figure 1.13.4
Flyers/Tarpulin
 Advertising Cost
Table 1.24
Items Total Cost
Flyers (1ream) Php 500
Tarpaulin Php1,800
Sample product (3 soaps) Php 108
Total Php2,408
Table 1.24 shows the items that will be used in the advertisement and promotion
of the proposed business. This also includes the total cost for the quantity of each items
needed.
 Marketing Program
Figure 1.14
Matrix Marketing Program
(Before Operation) Opening Day:

-Posts tarpaulins to different
barangays with large number of -Offers freebies for the first
potential patronizers. 40 buyers
Week 1 (Opening) Week 2-4

-Gives flyers to spread the newly -Posts reviews about the soap
introduced soap in the market. on social media pages/accts
Figure 1.13 shows the schedule of the simple marketing program that will be done
by the business before and during the first month of operation.

Channel of Distribution
Figure 1.15
Consumers
Producers/Resellers Consumers
Consumers
Figure 1.15 shows that the proponents of the business are also the producers of
the all-in-one fruit soap. They will be open for resellers wherein products are not only to
be sold by them so that the producers will generate more income. So, the distribution of
the product will either be from the producers and resellers, up to the customers or the
buyers.
Chapter 3
TECHNICAL ASPECT
The technical aspect discusses the process of production and activities of the
proposed business. This includes the technical description of the product, manufacturing
process, plant size and schedule, annual production capacity, machineries, tools and
equipment that will be used are enumerated with their corresponding cost, the raw
materials are cited, production cost, plant location and layout, building and facilities,
utilities, waste disposal, and labor requirements.
Product Description
The proposed product development which is the Fysikós Soap is an organic soap
made from fruit extracts of four fruits that are commonly used as an ingredient in soaps
namely: Ripe Papaya (Carica papaya), Tomato (Solanum lycopersium), Cucumber
(Cucumis sativus), and Calamansi (Citrofortunella microcarpa). The difference of this
soap is that all of these fruits or ingredients are found in only one soap plus the power of
honey and coconut oil which are also added in the soap resulting to achieving a lot of
benefits for the skin. Soap making is the process of saponification which is the chemical
reaction between any fat and sodium hydroxide which is the main ingredient to produce
soap. Making the Fysikós Soap involves three generalized stages: the preparation stage
for the ingredients to be used, the mixing stage, and then putting it into molders and
waiting the soaps to harden.

Figure 2.1
Product Logo
Figure 2.1 shows the official logo of the product.
The proposed business is named “Fysikós” because it has relevance to the first
soap makers. It is a Greek word meaning “natural” which depicts the components of the
product. The beehive icon and its color Yellow represent honey which is extracted from a
Beehive. The fruit icons;Ripe papaya, Cucumber, Tomato and Calamansi which are the
main ingredients of the proposed business which the Fysikós Soap. The color Red,
Orange, Green, and Light Green represent the fruits that are mentioned above (their
actual color). The proponents used color Brown which represents the color of the
Coconut Fruit because its oil is one of the ingredients of the soap.
Figure 2.2
Company Logo
Figure 2.2 shows the official company logo of the proposed business.
When the proponents‟ names are combined; Shean, Kira, Dezza, Erika and Nila,
they come up into a very fancy company name which is the ‟SherazaErla‟.
The proponents use the soap icon as their base logo because they are soap
manufacturers. They chose oblongated-type of soap icon because it is catchy for a logo
than a rectangular one. Bubbles are also visible on the logo which represents the action of
applying the soap. The black color represents boldness of the company. The Grey Color
is a cool, neutral and balanced color. It represents the company‟s formality and balance
treatment for the employees. The curve line under the company‟s name represents „smile‟
which means „happy lang’ the proponents don‟t intend to bring chaos, problems with
their future investors, employees and customers the logo smiles at everyone. Allin all,
SherazaErla‟s Logo is as simple as that. No further explanations, just direct to the point
which is also a very good characteristic of the said company.

Manufacturing Process
The manufacturing process shows the procedures and sequences done when
making the Fysikos Soap. It starts from the preparation of ingredients or the raw
materials up to the distribution of the finished products.
Figure 2.3
PEELING OFF CUTTING/SLICING GRATING THE EXTRACTING/

THE FRUITS (IF THE FRUITS INTO INGREDIENTS (ONLY
IF NECESSARY) JUICING
NECESSARY) SMALLER PIECES
(3 Minutes) (2-3 minutes) (5-6 minutes) (3-5 minutes)
ADDING THE HEATING/MELTIN BLENDING THE

STIRRING WELL EXTRACTED G THE SOAP BASE EXTRACTS OF THE
MIXTURE OR THE NaOH FRUITS
(1-2 minutes)
(10-15 seconds) (5-7 minutes) (1-2 minutes)
POURING THE LETTING THE REMOVING PUTTING THE

MIXTURE INTO SOAPS SOLIDIFY THE SOAPS SOAPS IN THE
THE SOAP
MOLDER (5-12 HOURS) INTO THE SOAP RACK
MOLDER
(40-45 seconds)
DISTRIBUTION TO
THE PUTTING THE
RESELLERS/BUS. BOXING PACKING
LABEL/LOGO
LOCATION
Figure 2.3 shows the chronological process and procedure in making the Fysikos
Soap.
Procedures: (Duration for each step depends on machine’s capacity per batch)
1. Peel off the fruits if necessary. The only fruits that shall be peeled are the ripe papaya
and cucumber. This may take 3 mins per batch for each machine.
2. Cutting the fruits into smaller pieces. This may take 2-3 mins.
3. Grating the fruits to turn it into tiny bits. You can also use a juicer for faster
processing. (Only if necessary). This may take 5-6 mins.
4. Extracting the grated fruits. If a juicer is used, proceed to the next step. This may take
3-5 mins.
5. Mixing the desired amount of ingredients.
6. Stirring the mixture well. This may take 1-2 mins.
7. Preparing the ingredients in making the lye solution.
8. Heating the oils in a sauce pan with the desired measurement. This may take 1-2 mins.
9. Preparing the lye solution. (Adding the desired amount of lye to distilled water). This
may take 1-2 mins.
10. Mixing the lye solution to the heated oils. Stir/blend well. This may take 2-3 mins.
11. Adding the mixed fruit extracts and honey to the lye solution. This may take 10-15 s.
12. Blending/stirring well. This may take 1-2 mins.

13. Put the soap mixture in a silicon container.
14. Wait until the soap has fully hardened .(For best results, let it solidify for 12-24 h)
Plant Size and Schedule
The plant which will be located at Brgy.Halang, Calamba City Laguna measures
18-24 square meter.
Schedule 1.1
GANTT Chart
1/7 1/17 1/27 2/6 2/16 2/26 3/8 3/18 3/28 4/7
Determine the materials needed in the plant
Buying materials that will be needed in the plant.
Arranging the materials that was bought
Checking the supplier of the ingredients
Delivery of Ingredients needed for the production
Hire workers
Orientation
General Cleaning
Testing of Machineries and Equipments
Replace the things that are needed to
Testing of the replaced Machineries and Equipments
Training
Start of the production proper
Schedule 1.1 shows the GANTT chart or the schedule of activities before the
production proper of the proposed business.

 Schedule of Operating Days
When the plant has already completed the said schedule and the production proper
has started, it will operate 6 days weekly from Monday to Saturday, 6:00 am to 2:00 pm.
The over time for workers shall depend on the need of the supplies and of course on their
choice. Non-operating days will include regular holidays and Sundays.
Schedule 1.2
Schedule of Operating Days
Number of working days in ayear 365
Less: Holidays 5
Less: Sundays 48
Total Operating Days in a Year 312 Days
Schedule 1.2 shows the number of operating days in a year wherein Holidays and
Sundays are already eliminated.
Annual Production Capacity
The proponents target output that shall be produced within the day is 194 bar
soaps. To compute the annual production capacity, the daily supply or the daily target
output will just be multiplied to the number of working days in a year which is 312 days.
When multiplied, this will result to the production of 60, 528 bar soaps.
Table 2.1.1
Total number of working days in a year 312 days
Standard Annual Production 121,056 bar soaps.
Maximum Output Computation:
Table 2.1.2
Daily production capacity 388 bar soaps
Number of working days in a year 312 days
Annual Production Capacity = (Daily prod. capacity) x (No. of working days yearly)
= (388) (312)
= 121,056 bar soaps, annually

Machineries and Equipments
Table 2.2
Machineries and Equipment
Total Cost
Machineries and Equipments Unit Cost Quantity Annually
1. Measuring Cup ₱ 70 4 ₱ 280
2. Pot Tipper Tank MM ₱ 42, 785 4 ₱ 171,140
3. Big Casserole ₱ 292 8 ₱ 2,336
4. Silicon Molder with cutter ₱ 400 60 ₱ 24,000
5. Heat Gun ₱ 1,199 2 ₱ 2,398
6. Printing Machine (Printer) ₱ 1,900 2 ₱ 3,800
7. Air conditioner ₱ 6,648 1 ₱ 6,648
8. First Aid Kit ₱ 250 2 ₱ 500
9. Gloves ₱ 242 1 box (100pcs/box) ₱ 242
10. Face Masks ₱ 98 1 box (100pcs/box) ₱ 98
11. Apron ₱80 6 ₱ 480
2 boxes
12. Hairnet ₱ 100 (50pcs/box) ₱ 200
13. Safety Goggles ₱173 6 ₱ 1,038
14. Juicer Machine ₱ 8,277.5 4 ₱ 33,110
15. Electronic Mixer Machine ₱ 10,494 4 ₱41,976
Total ₱288,246
Source: Lazada, Shopee, Abenson, Industry Buying, Amazon, Sm Appliances, Omni, RsOnline,Alibaba
Table2.2shows the list of all machineries and equipment that will be used in the
production of the proposed business which is the development ofFysikos Soap. The
equipment that will be used in the business location itself is also found in the table above.
The table includes the following information: the item, unit cost, quantity and total cost
annually.
Furniture and Fixtures
Table 2.3
Furnitures and Fixtures
Furnitures Unit Cost Quantity Total Cost Annually
1. Emergency Light ₱ 1,500 2 ₱ 3,000
2. Fire Extinguisher ₱ 1,377 2 ₱ 2,754
3. Exhaust Fan ₱ 1,699 2 ₱ 3,398
4. Refrigerator ₱ 9,698 1 ₱ 9,698
5. Toilet Bowl ₱ 4,250 1 ₱ 4,250
6. Bidet ₱ 400 1 ₱ 400
7. Pail ₱ 70 1 ₱ 70
8. Dipper ₱ 20 1 ₱ 20
9. Faucet ₱ 175 2 ₱ 350
10.File Cabinet ₱ 2,500 1 ₱ 2,500
11. Sofa ₱ 8, 200 1 set ₱ 8, 200
12. Center Table ₱ 2,499 1 ₱ 2,499
13. Long Tables ₱ 1,000 3 ₱ 3,000
14. Soap Rack ₱ 3,000 2 ₱ 6,000
15. Lights ₱ 105.06 1 ₱ 105.06
16. Switches ₱ 79.75 1 ₱ 79.75
17. Glass Cabinet ₱ 4,300 1 ₱ 4,300
18. Cabinet ₱ 700 1 ₱ 700
19. Chairs ₱ 100 12 ₱ 1,200
20. Small Table ₱ 400 1 ₱ 400
TOTAL ₱ 52,923.81
Source: Lazada, Shopee, Abenson, Industry Buying, Amazon, Sm Appliances, Omni, RsOnline,Alibaba, Olx
Table 2.3shows the list of all Furniture and Fixtures that will be used in the
production of the proposed business which is the development ofFysikos Soap. The
furniture that will be used in the business location itself is also found in the table above.
The table includes the following information, unit cost, quantity and total cost annually.
Office Supplies
Table 2.4
Office Supplies
Office Supplies Unit Cost Quantity Total Cost Annually
1. Record book ₱ 30 2 ₱ 60
2. Ball pen ₱ 250 1 box ₱ 250
3. Tissue ₱ 380 1 dozen ₱ 380
4. Sticker paper ₱ 37.75 200 ₱ 7580
5. Bond paper(long) ₱ 170 1 ream ₱170
6. Bond paper (short) ₱ 170 1 ream ₱ 170
7. Receipt paper ₱ 18 5 ₱ 90
8. Tape ₱ 30 5 ₱ 150
9. Pentel pen ₱ 150 1 box ₱ 150
10. Staple wire ₱ 166 1 box ₱ 166
11. Stapler ₱ 400 2 ₱ 800
12. Calculator ₱ 140 2 ₱ 280
13. Ink ₱ 400 2 ₱ 400
TOTAL: ₱10,624
Source: National Bookstore, 268, 578, Inkrite
Table 2.4 shows the list of all office supplies that will be used in the production
of the proposed business which is the development of Fysikos Soap. The table includes
the following information: the item, unit cost, quantity and total cost, annually.
Cleaning Supplies
Table 2.5
Cleaning Supplies
Cleaning Supplies and Unit Total Cost
Equipments Cost Quantity Annually
1. Mop ₱ 599 1 ₱ 599
2. Dust Pan & Broom ₱ 600 2 set ₱ 1,200
3. Trash Bins ₱ 135 3 ₱ 405
4. Garbage bags ₱ 99 1 roll ₱ 99
5. Liquid Soaps ₱ 240 1 gallon ₱ 240
6. Rag ₱ 100 3 set (5pcs./set) ₱ 300
TOTAL: ₱ 2,843
Source: Rubbermaid, thewirecutter, Lazada, Pricepanda,iPrice
Table 2.5 shows the list of all the cleaning supplies that will be used in the
proposed business which is the thedevelopment of Fysikos Soap. The table includes the
following information: the item, unit cost, quantity and total cost, annually.
Production Cost
Table 2.6
List of Raw Materials (Price Preference)
Items Quantity Unit Unit Cost

Clear Soap Base 1 kilogram Php 185
Papaya 1 kilogram Php 45
Cucumber 1 kilogram Php 40
Tomato 1 kilogram Php 85
Calamansi 1 kilogram Php 55
Honey 1 bottle Php 100
Coconut Oil 1 bottle Php 144.75
Source: Sogomi Corp., MCDC market, SM Supermarket
Table 2.6 shows the amount for each desired unit of the raw materials that will be
used in making the proposed product. This includes the items used, quantity, unit, and its
unit cost.
Table 2.7
List of Direct Materials (Good for 194 soaps)
Items Unit Unit Cost Quantity Total Cost

Clear Soap Base Kilograms Php 185 24000 g/24 kg Php4,440
Papaya Kilograms Php 45 3841.2 g/3.8412 kg Php172.854
Cucumber Kilograms Php 40 1940 g/1.94 kg Php77.6
Tomato Kilograms Php 85 1940 g/1.94 kg Php164.9
Calamansi Kilograms Php 55 970 g/0.97 kg Php53.35
Honey Kilograms Php 312.5 970 g/0.97 kg Php303.14
Coconut Oil Kilograms Php 561.80 970 g/0.97 kg Php494.94
Total Php5,706.784
Source: Sogomi Corp., MCDC market, SM Supermarket
Table 2.7 shows the unit weight, cost, quantity, and the total cost of each raw
materials that will be used in the production of the proposed product daily.
Table 2.8
Indirect Materials(For each soap)
Items Quantity Unit Cost Total Cost

Shrink Wrap 1 Php 0.5 Php 0.5
Labelling 2 Php0.585 Php1.17
Source: Lazada, National Bookstore
Table 2.8 shows the indirect materials used in the production of the proposed
business that includes the quantity needed, unit cost, and total cost.
Plant Location
The plant is located at Brgy. Halang, Calamba City Laguna. The following are the
reasons why the proponents chose the place to be the business‟s plant location.
 Accessible
 Near the store location
 Has a reasonable price
 Has an area for the proper waste disposal
Vicinity Map of the Plant

Figure 2.4
Source: Google Maps
Figure 2.4 shows the map where Crossing Calamba is visible so that the way to the plant
location is easily found.

Figure 2.5
Source: Google Maps
Figure 2.5 shows the actual picture of the rented place for the plant location.
Plant Layout
Figure 2.6
Cabinet
Refrigerator
Entrance Rest Area
/Exit
Admin Office
Preparation
Area
C.R.
Packaging Cooling Area

Area Cooking Area
Stock Area
Back door
Segregation of wastes
Figure 2.6shows the floor plan/layout of the plant where the product will be made.
Building and Facilities
The proposed business will be located at Crossing, Calamba City Laguna wherein
the proponents will rent a space that is visible for all the potential buyers in the business.
Since the business may have further developments, the listed facilities that will be needed
are as follows:
Table 2.9
Renovation Cost
Item Quantity Unit Unit cost Total Cost
Plywood 5 Pieces Php 600 Php 3,000
Common Nails 1 kilogram Php 30 Php 30
Paint 4 litres Php 595 Php 595
Total Php 3,625
Source: Palo-Alto Trading
Table 2.9 shows the items that will be needed for the further renovation of the
building and facilities of the business. This includes the quantity needed for each item,
the unit used, unit cost, and the total cost.

Utilities
Table 2.10
Utilities expense
Description Monthly Consumption Annual Consumption
Electricity 4, 000 48,000
Water Supply 1, 000 12, 000
Total Php60, 000
Table 2.10 shows the utilities that will be used in the proposed business with the
amount of its monthly and annual consumption. This includes the electricity and water
supply.
Table 2.11
Communication expense
Description Monthly Consumption Annual Consumption
Telephone Expense 599 7, 188
Internet Expense 999 11, 988
Total Php 19, 176
Table 2.11shows the communication expenses that will be incurred in the
proposed business with the amount of its monthly and annual consumption. This includes
the telephone and internet expense.

Waste Disposal
Since Sodium Hydroxide (NaOH) is used as the base of making soaps based on
research, any kind chemicals that exist is considered hazardous in any way. NaOH must
be disposed properly. First, prepare the base to be dispose. Second, neutralize by the help
of pH meter (should eb pH 6.6-7.4) Last, Let the cold water run in the sink and wash the
neutralized solution down the drain.
With the help of proper segregation of trash, the proponents can easily determine
whether it is to be recycled or not. The biodegradable trash will be disposed under the
soil; hence, it is easy to be decomposed there. The non-biodegradable trash will be sold to
junk shops so that it will be recycled and also, the proponents will have an extra income.
Being able to dispose wastes properly will help the proponents to maintain their
business place and as well as their plant location safe and clean for the sake of the
employees, admins and future customers and investors.
Labor Requirements
Labor requirements will only be focusing on the employees on the production that
will be hired when the proposed business will start its operation. Since the partners
agreed to be an industrial partner, all of them will contribute their service in the business
and some will be on the production area. They will act as the admin officers that will
monitor the plant and business operation. In connection to this, they all agreed not to
receive any salary but all the income that will be generated will be divided equally among
them.
Since the partners will be the admin officers, they will only hire employees for the
production operation. The labor requirement is shown below.
Table 2.12
Direct Labor
Description Daily Rate (Php) Monthly Rate Annual Rate (Php)
(Php)
Worker 1 373 9,698 116,376
Worker 2 373 9,698 116,376
Worker 3 373 9,698 116,376
Worker 4 373 9,698 116,376
Total 1,492 38,792 Php465,504
Table 2.12shows the description of the labor, their daily rate for working 8 hours
a day, monthly and annual rate.

REFERENCES
Bourn, J. (2010, December 10). Color Meaning. Retrieved August 06, 2018, from
https://www.bourncreative.com/meaning-of-the-color-grey/
Lazzari, Z. (2018, June 29). Economic Factors Affecting the Market. Retrieved August
01, 2018 from https://smallbusiness.chron.com/economic-factors-affecting-
marketing-1699.html
Lisse, J. What can affect marketing? Chron. Retrieved August 01, 2018 from
https://smallbusiness.chron.com/can-affect-marketing-30997.html
Northrup, M. The Main Ingredients in Soap. Hunker™. Retrieved July 19, 2018 from
https://www.hunker.com/12000104/the-main-ingredients-in-soap
Webmaster.(2016, March 30). Disposal of Chemical. Retrieved August 06, 2018, from
http://chemistry.umeche.maine.edu/Safety/Disposal.html
History of soap. Retrieved July 14, 2018 from http://www.soaphistory.net/

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SAINT BENILDE INTERNATIONAL SCHOOL (CALAMBA) INC.

Crossing, Calamba City, Laguna

PROJECT BACKGROUND AND HISTORY

Soap, a very saleable commodity, is a cleaning agent that is very effective at

cosmetics or drugs for improvements and treatments for the skin.

Papaya (Carica papaya), Tomato (Solanum lycopersium), Cucumber (Cucumis sativus),

extracts to increase the lather in soap.

deal with nasty skin breakouts. Calamansi or Calamondin is an abundant source of

coconut oil and honey moisturize and hydrate skin.

without using any expensive medications and clinic sessions.

of future demand of the current undertaking.

Total Population Increase/

2017 482,035 2.90%

four (4) years up to the present is 3.19%.

Average Increase 3.09%

percentage. Percentage increase is de rived from subtracting the projected current

result of statistical straight line method.

Market Target Frequency of Projected

Projected Price per Demand (in Increase/

increase in price per pack.

showed a continuous increase in quantity demand that can be attributed to continuous

increase in population with high market acceptability.

0.50% of has 1-2 family members.

1. Do you use organic soap?

Table 1.8 Figures 1.2

product will be acceptable in the market.

2. Which soap do you prefer to use?

Organic 129 64.50% 35.50% Organic

Total: 200 100%

organic ingredients, has a big opportunity to be patronized in the market

3. What soap brand are you using?

Table 1.10 Figure 1.4

100% Kojic Palmolive Others

Table 1.10shows that among the 200 respondents,41.5%of them chose

on it and its amount is not pricey compared to other soap brands.

4. How much is the soap you usually buy?

Table 1.11 Figure 1.5

70-90 php 41 20.50% 40-60

5. Do you use soaps for cosmetic purpose/beautification?

Yes 102 51% 49% Yes

Total: 200 100%

organic and is expected not to be harmful to the skin.

6. Do you use soap for threating skin problems/ medications?

Table 1.13 Figure 1.7

Total: 200 100%

any artificial pigments so it will be pure natural and organic.

Table1.14.5 shows that among the 200 respondents, preponderance of them

the importance of packaging when choosing soap. Appearance is really a thing in

Very Important Somewhat Important

Two 62 31% Two

Table 1.16 Figure 1.10

Respondent's Answer % 100

will take that opportunity to gain more customers.

Papaya, Cucumber, Calamansi, and Tomato)?

Table 1.17 Figure 1.11

Total: 200 100%

capacities daily, weekly, monthly, and yearly.

machine since there are four(4) units available for operation.

increase the supply.

Demand and Supply Analysis

Year Total Demand Supply Supply % Unmet Demand

Cost of overhead per pack 1.67

Add: mark-up 9.16