I.

EXECUTIVE SUMMARY

Purse Place will be established in 2020. Purse Place is a merchandising business that is

focused on selling products which involves wallets and purses. In this business industry, the

priority is to serve and provide customers the ultimate products that they deserved to acquire.

The brand itself tells about how stylish the products will be. Purse Place has a tagline of “Always

on Top” which reflects on the how the business will run in the market.

Purse Place is a business which will be established focuses its products in varieties of

wallets, pouch and purse. Purse Place segmented the market for general in which people from

teenagers, adults and even elder could use this product with a quite affordable price. Purse Place

also offers various types of pouch that can meet the needs and desires of each customer.

Target marketing is a set of buyers sharing common needs or characteristics that the

company decides to serve.

Purse Place will select the customers we wish to have and in this way, we tend to attract

all kind of customers from teenagers to elder. Purse Place also insist to get all people to use their

products therefore, they sell their products in a very affordable price which is ranging from Php

150 - 500 each.

Purse Place future projections are to be working together with some brands who are

offering good quality products that will satisfy the customers. Also, the business will try to seek

for further improvements by asking support from external experts which are related with wallets.
 Furthermore, Purse Place aims to expand the target market so as to improve the sales

and profit while providing good quality products to the consumer. Moreover, in the future, Purse

Place is planning to append the factories so the number of the wallet products could gradually

increase.

The competition in the specialty advertising industry is very strong on a local and regional

basis but somewhat weak nationally. Sales figures for the industry as a whole are difficult to

obtain since very little business is conducted on a national scale. Any company that sells wallets

and pouches within the vicinity of Mariveles is a competitor to Purse Place. In Mariveles, the

public market, bazaar, fashion boutiques, and online reseller are the competitors of this kind of

business. Purse Place is a business that will offer high – end products made from a good quality

materials. Our business will ensure to provide affordable and high-quality products that will meet

the satisfaction of our customers which serves as the competitive advantage of the business.

The physical assets of the business sums up to Php 50 000 for the first year. It includes

the cash, inventory and supplies that we need in our business. We project to increase in sales for

up to 50% after one year of our business operation. Our shop will also conduct events as part of

our operational plan and post our products in our Facebook page as part of advertising since it is

free and accessible. Purse Place will provide good quality of handmade products throughout the

community.
II. MARKET ANALYSIS

In the present days, people seem to be sacrificing space in their pouch or wallets as for

the storage of primary needs which includes assets and wealth. Wallets are the most common

and major necessity in terms of the security of such. People can also find a wide variety of wallets

either online or through physical shops, needless to say regular wallets aren’t a hard thing to find,

but quality pouches are.

This serves as the main reason why wallets are essential to the lives of human beings.

Without a proper storage of things, there will be disturbance in terms of the people’s concern

with their personal things.

As for the market analysis, the usage of both PEST and SWOT analysis are essential in this

situation. Generally speaking, a SWOT analysis measures a business unit or proposition, whereas

a PEST analysis measures the market potential and situation, particularly indicating growth or

decline, and thereby market attractiveness, business potential, and suitability of access - market

potential and 'fit' in other words. PEST analysis uses four perspectives, which give a logical

structure, in this case organized by the PEST format that helps understanding, presentation,

discussion and decision-making.

PEST Analysis

External factors are one of the significant concerns dealing with our business and thus

this can be able to inform us about the macroeconomic level. The concept of having this analysis
is to know and analyze the potential threats that may affect our business and thereupon be the

basis of making strategies in preventing such.

Political Factor Economic Factor

a. Regulation a. Inflation

b. Political Stability b. Globalization

c. Exchange Rates

d. Economic Growth/ Decline

e. Interest rates

f. Labor Cost

g. Spending Habit of Customer

Social Factor Technological Factor

a. Culture, Norms a. Development of Equipment

b. Human Attributes/ Behavior (Technologies)

c. Social Trends b. Security

d. Population Demographics c. Social Networking

e. Spending Habit
Political

a. Regulation

• Tax Regulation (BIR)

• Permits (e.g. business permits, sanitary permit)

- Businesses are widely affected by the regulations the government are issuing. To

establish a business, entrepreneurs must undergo lots of process like having permits

and getting BIR. The time it takes to create one is very long. In terms of taxation, every

business must have BIR (Bureau of Internal Revenue) as one of the requirements to

adhere to the government as one of the policies adhered by all.

b. Political Stability

- Mainly the one controlling the regulation of the country and its status. If one’s country

does not have the capability or its foundation is not that strong, especially, businesses

are greatly affected since the business industry depends on it for regulatory measures

and legality of all sorts.

Economical

a. Inflation

- Inflation is very flexible so it is one major affecting-factor of every business where

prices of resources instantly rise up.

b. Globalization

- We are in the modern world where technology can access all location and integrate

many businesses, companies, people or societies. Businessmen should be expert on

 how they use such a big opportunity to upgrade their business and widen their scope

of business implementation. Since advancement of technologies that communication

and interaction of different businesses and companies is the channel for everyone to

reach one another, if there were changes or bad turns of event about it, it will greatly

affect all country including the intervention and connection of different businesses

and companies especially when one another depends on each other.

c. Exchange Rates

- The very basis for day-to-day transaction is the purchases. If there were changes in

the exchange rate of the country, it will greatly affect the business in terms of

negotiations with suppliers of different places/country.

d. Economic Growth/ Decline

- If the place is experiencing economic growth, then it is a good spot to build a business.

Meaning, it is essential when deciding a place for starting up a business in a growing

country or not. If that place is experiencing economic decline, then there are

possibilities of business being brought down due to problems concerning their

business environment that is in ruin like scarcities of resources and such.

e. Interest rates

- Interest rate is a big factor especially for a business currently being started since it is

common to have a strong capital and some loans from banks or any other lending

sources. If interest rates will increase, then a business will have a hard time paying for

such high rates and affects business performance internally.

 f. Labor Cost

- If the customer or your target market have low purchasing power, then it is hard for

a business to earn. It is important to observe the income of your target market since

the business income depends on the purchases of the customers to your

product/service.

g. Spending Habit of Customer

- A business inclined with the market's wants will have a hard time earning if the people

in the business area are sensitive to living and spending money in a good way. It is an

important to observe your market's spending habit even it may seem small and varies.

An expert businessman should never miss this idea since it is vital for the income of

the business.

Social

a. Culture, Norms

- A widely considered factor that businesses must observe since the product depends

on what the target market needs/wants usually (of course) related to their culture

lifestyle.

b. Human Attributes/ Behavior

- Human behavior could be a factor. If the place of the business has people who are

assertive, sensitive, aggressive, sarcastic etc., one must be observant to select

employees that have the capability to interact with different kinds of people since

they are directly interacting with the customers.

 c. Social Trends

- A business must always be updated to their surroundings for what the target market's

demand changes as time passes by.

d. Population Demographics

- Should a businessman want to build a retail store for target market's daily needs but

have minimum wage/salary/profit in a populated resident or have a big business

covering up a wider scope of target market for high income? It depends on what the

businessman want base on their location whether it is filled with resident or in a

commercial area.

e. Spending Habit

- It is also considered to be a factor under social analysis since the topic mainly revolves

on the target market's way of spending their money.

Technology

d. Development of Equipment (Technologies)

- The business should know the current and latest form of technologies for it is essential

for operational activities and could affect the entire business itself.

e. Security

- With an advancing technology that gives rise to many upgraded equipment, some

businesses may suffer from securities being infiltrated. Personal business information

are things that must be kept hidden from other competitors or they will try to use it

for their advantage and make your business weak. On some other case, it may affect

the image of your business once the information is disclosed to the public especially
 if it contains bad information. In our world of technology, there is no safe place to

hide if you have a weak security system in your business.

f. Social Networking

- People are able to access different sources in one place and could even disseminate

information everywhere easily. Connecting to a business, once a customer spots

something different in your business, they tend to share it through media so if they

have a bad impression, it'll surely affect the image of your business. A businessman

should be careful on the performance they are giving to the customer so as to prevent

this kind of threat to the business.

SWOT Analysis

It is still a huge risk to establish a business, so determining the possible strengths,

weaknesses, opportunities, and threats are essential. SWOT analysis has been used for us to

determine these concerns.

SWOT analysis is a strategic planning technique used to help a person or organization to

specify the objectives of the business venture or project and identify the internal and external

factors that are favorable and unfavorable to achieving those objectives. Users of a SWOT

analysis often ask and answer questions to generate meaningful information for each category

to make the tool useful and identify their competitive advantage. SWOT has been described as

the tried-and-true tool of strategic analysis, but has also been criticized for its limitations.
 Strengths Weaknesses

a. Good Product Quality a. The start - up costs is quite high

b. Variety of Product b. Manufacturers are hard to find

c. Intelligent and Practical Design c. High Price compared to competitors

d. Knowledgeable employee / owner d. Promotion will take a lot of time

e. Good Marketing Skills

f. Fast and Good Quality of Repair Service

g. Innovative and Feature Added Product

Opportunities Threats

a. Advertising Through Online a. Huge market competitors

b. Expand and discover more features for b. Risk of rejection by the market due to

the product the price

c. Provide additional products

Strength

 Good Product Quality

- As for the wallet itself, innovative features will be added such as material for the

production emits resistance towards the water making it more durable and useful.

Also, the design of the wallets varies from each customers depending upon on their

desires and taste.

 Variety of Product

- Our business will provide various types of wallets which has similar features and the

quality will still remain. Some kinds of wallets are suitable from young individual up

to the older one which makes it more usable at different types of customers.

 Intelligent and Practical Design

- Trendy style wallets will be out of the market that can attract more customers with

its appealing design.

 Knowledgeable employee / owner

- When it comes to the internal factor, the owner will also act as the employee since it

is just a merchandising business and can be handled easily on a regular basis. It is

important that the sales representative, or the owner itself, has a knowledge about

their merchandise and its component. In other words, it is necessary that the

employee highly-skilled when it comes to that specific field.

- In our business, when referring about the inquiries, we can be able to provide the

information that are being asked by our customers in a very accurate way.

 Good Marketing Skills

- One of the plans included, basically, is to have a good marketing strategy on which

the wallets will be advertise in a good and meaningful way that can encourage

everyone into buying a well-crafted product.

 Fast and Good Quality of Repair Service

- When issues have been encountered especially when dealing with defective product,

we will do it in a face pace manner so as to ensure that the customer will never
 disappoint with our service. But as much as possible, a careful examine will be done

and tries not to overlook those negative results in the selling process.

 Innovative and Feature Added Product

- New generation wallets don’t just have simple interior design but they are made with

even more space and they have sectioned off parts of the wallets. But still, variety of

the products will also be introduced so that there will be many choices and

preferences by the customers.

Weaknesses

e. The start - up costs is quite high

- To be able to produce this kind of product, we must provide more capital to assure

that we will acquire a better quality of such.

f. Manufacturers are hard to find

- Actually, there are lots of manufacturers of wallets especially here in Mariveles. Since,

the business is a merchandising type, it would be somewhat hard for us to locate good

producers of this product.

g. High Price compared to competitors

- Since our product is innovative, we offer additional features of our wallets which

makes it a little expensive compare to some of such product in the existing market.

But not all wallets are costly, it also depends on the design and features.
 h. Promotion will take a lot of time

- Since there are many brands are now present in the market, it would be hard for us

to promote our brand as it takes time for us to encourage buyers to switch to our

products.

Opportunities

a. Advertising Through Online

- There are many social media platforms which are available nowadays and this may be

the solution for us to get enough promotion and spotlight when it comes to the

features and description of our business.

b. Expand and discover more features for the product

- As time pass by, we can easily adapt to the trends and to the current market by

providing a more innovative wallets. Such features have been introduced, more

improvements have yet to come.

c. Provide additional products

- Through technology, we could have an access to modern market and therefore helps

us to innovate and sell product which are relevant with the wallet. We can sell

accessories such as mini but powerful battery packs and adaptors for charging devices

so they are compatible. Selling these accessories could help brand recognition since

this wallet can be very convenient in some sort of situations.

Threats

a. Huge market competitors

- As soon as our business will be introducing in public, many competitors will rise

alongside. They could have plans on how to provide high end products and at the

same time, may promote more features related with wallets.

b. Risk of rejection by the market due to the price

- As we plan for our product, we think and provide alternative raw materials that are

not expensive yet it has high quality so that the price will not be affected and made

the customers engage to buy it. So we will try to find out more strategies and

techniques for us overcome declining if ever it will happen.

III. MARKET SEGMENTATION AND CUSTOMER ANALYSIS

According to WebFinance Inc. (2019), market segmenting is the process of defining a large

homogenous market into clearly identifiable segments having similar needs, wants, or demand

characteristics

Market segmentation broke down into four (4) which are:

1. Geographic

Purse Place divides the market segment into different units such as towns. Such business

aims its product to be sold in the small segment of market since the business is new to public
once it will be established. It is easier for the customers to buy wallets because they can acquire

the product by visiting the store or online inquiry.

2. Demographic

Purse Place segmented the market for general use, therefore it will sell all of the products

with various designs and colors. Each pouches’ price varies depending on the size, design and its

feature. But Purse Place assures that the products will be affordable so that could satisfy all of

the family members without concerning their income since it is sold in a reasonable price.

3. Behavior

Purse Place will attempt to produce more products in the future that could be useful for

all the customers. Purse Place will provide different type of pouches based on the consumer’s

wants and needs such as stylish wallets, pouch made from leather, and other varieties.

4. Lifestyle

Lifestyle Segmentation is a type of segmentation in which the consumers are grouped as

per their lifestyle. Marketers use lifestyle segmentation and studies to plan their product or

service better, so that it is in line with the consumer lifestyles.

Purse Place will introduce products which depends on the interest or the social class of

the customers. With that being said, it is necessary for the business to have variety of designs,

colors, size, and features of the wallets or purse.

Market Research Findings

Purse Place will select the customers we want to have and, in this way, we tend to attract

all kinds of customers from teenagers to the elderly. Therefore, Purse Place also demands that

all customers buy the goods, and selling the products at a very affordable price varying from Php

150 to 500 each.

Wallets and purses are essentially bags that come in a variety of sizes and are a product

of certain fashion designs. Those employed within this industry are designers and manufacturers

of wallets and purses, and specialty retailers whose primary market is in selling wallets.

If ever a businessman tries to break into the fashion accessory industry, you know that

the competition is fierce. That's especially true if you're marketing wallets, a fashion item that

serves as both a status symbol and an accessory.

Consumers might pay as little as Php150 for a bag or as much as several thousand, so your

product and your intended customer will greatly determine how you market. While marketing a

pouch isn't an exact science, there are some strategies you can employ to make the most of your

product.

The first step to market wallets and pouches is to determine who your target

demographic is. For instance, if you've created casual, hand-made canvas bags, your audience

might be teenage girls. If your bags are created from hand-tooled leather and finished with

expensive hardware, you'll have a different target demographic altogether. You likely had a
customer in mind when you designed and created your bag, but detailing out who that person is

will help you focus your marketing.

According to Statista (2019), in the Philippines, there are about 24.93 million users of

handbags and wallets (23.08 % of the total population in the Philippines) as of 2019 and is

expected to increase every year. Since Purse Place will be establish in Mariveles, Bataan, the

population is about 127,536 as of 2015 census. 64,277 (50.4 %) of them are males and 63,259

(49.6 %) are females. Moreover, the target market of Purse Place ranges from teenagers to elders

which ages from 15 to 64 years old and 87,496 (68.6 %) of the population of Mariveles are

included in that particular age bracket. With that being said, the number of the given population

will serve as the potential customer of Purse Place once it is establish in the marketplace.

Any business that sells wallets and pouches within the vicinity of Mariveles is a competitor

of Purse Place. In Mariveles, the public market, bazaar, fashion boutiques, and online reseller are

the competitors of this kind of business. As of now, the entrepreneur is in the process of

establishing a competitive advantage which refers to the ability to stay ahead of present or

potential competition. Businesses develop a competitive edge when they produce attributes that

allow them to outperform their competitors.

The customer affects the decision of the business’ action in terms of their buying behavior

and their feedback. In the view in community, the purchasing power of the customers, which

depends on their socio economic status, provides high impact as it serves as the basis on how the

business will operate. When it comes to the price of the products, the suppliers are the one who

are responsible in the changes of the decision of the business. For a new business owner, an
online store can be a good source of supply when it comes to wallets and pouch since the price

is reasonable yet has a good quality.