Feasibility Study GoWine 2022-04-28
Feasibility Study GoWine 2022-04-28
Friendly Packaging
Technology
1
CONTENTS
ABSTRACT…………………………………………………………………………………………4
Introduction……………………………………………………………………………………..5
Chapter 1: Proposal………………………………………………………………………….6
A. Proposed Company Logo……………………………………………………….7
B. Trademark…………………………………………………………………………....8
I. Brand name and Logo: GoWines……………………………………….8
II. Product and Service………………………………………………………….9
III. Product Design and Specifications…………………………………….9
IV. Location…………………………………………………………………………..10
V. Descriptive Definition of the Product……………………………….11
A. Business Concept……………………………………………………….12
B. Competitive Advantage………………………………………………12
C. Target Market…………………………………………………………….12
D. Technological Concept……………………………………………….13
E. Business Model Concept…………………………………………….13
F. Value Chain………………………………………………………………..15
C. Short-Term and Long-Term Objectives………………………………….20
D. MIssion, Vision and Core Values……………………………………………21
E. Internal Success Factors……………………………………………………….22
F. External Success Factors………………………………………………………22
G. Feasibility Criteria………………………………………………………………..24
Chapter 2: Environmental Analysis………………………………………………….25
A. Political/Legal Factors…………………………………………………………..25
B. Economic Factors…………………………………………………………………26
C. Socio-Cultural Factors………………………………………………………….30
D. Technological Factors…………………………………………………………31
Chapter 3: Industry Analysis…………………………………………………………….32
A. Industry Overview………………………………………………………………..32
2
B. Michael Porter’s 5 Forces……………………………………………………34
C. SWOT Analysis……………………………………………………………………38
Chapter 4: Market Analysis…………………………………………………………….39
A. Research Design and Methodology…………………………….………39
B. Distributor…………………………………………………………………….……43
C. Market Projection……………………………………………………………….44
D. Demand Analysis and Projection…………………………………………44
E. Supply Analysis……………………………………………………………………45
F. Demand Supply Gap Analysis…………………………………………..…45
G. Price Study………………………………………………………………………….46
H. Marketing Plan……………………………………………………………………47
Chapter 5: Technical Study…………………………………………………………..…49
A. Level of Distribution Channel………………………………………………49
B. Supplies, Equipments and Furnitures…………………………………..49
C. Building and Facilities…………………………………………………………..51
D. Calendar of Activities………………………………………………………..…52
E. Operations…………………………………………………………………………..52
Chapter 6: Management Study……………………………………………………….55
A. Organizational Plan……………………………………………………..………55
B. Strategies and Programs……………………………………………………..59
Chapter 7: Financial Study………………………………………………………..…….62
A. Financial Assumptions………………………………………………………...62
B. Master Budget………………………………………………………………….…64
C. Financial Statements Analysis………………………………………………77
Chapter 8: Risk Assessment………………………………………………………….….81
A. Success Factors…………………………………………………………………….81
B. Risk Factors……………………………………………………………………….…82
C. Recommendation……………………………………………………………..…82
Appendix……………………………………………………………………………………..….88
3
Abstract
Studies show that there is no supply of wine by the glass in the Philippines yet and
GWPS Corp. would be the prime mover of the product. The purpose of this research is
to determine whether wine producers are willing to use portable single serve packaging
and an eco-friendly product. The wine with its unique packaging produced will meet part
of the demand from the growing domestic market, and part of the production can be
exported as the packaging will be 100% eco-friendly. The researchers used a survey
questionnaire to determine if wine producers are in favor of the proposal of the group.
After tallying the responses of the participants and analyzing the balances in the
forecasted financial statements, it is concluded that the value of assets, liabilities and
equity would improve over the operation period of the company if the actual sales would
exceed or match with the forecasted/budgeted amounts. It was also noted that the profit
or return would be favorable overtime. However, there are still recommendations that
4
Introduction
Wine is an alcoholic beverage prepared from grapes or grape juice that has been
fermented (Saranraj et al., 2017). In fact, Boniface (2017) discovered that it is the most
often linked beverage with pleasure, celebrations, and festivals across differing cultures
in the world. Wine's worldwide production reached a maximum of 260 million hectoliters
in 2020 due to its surging demand and prominence in the contemporary era (Varia et
al., 2021). Numerous sorts of wine are produced worldwide, with French wines being
the most popular (Teissedre, 2018). The broad categorization of wines includes red
wines manufactured from whole grapes, white wines created from grape juice, and
sparkling wines, which are naturally carbonated white wines (Joshi et al., 2017).
Over the previous decade, the wine sector of business has grown substantially
established in the field because venturing in this business has a massive probability to
Analysts forecast that demand for luxury wines will continue to expand at an
annual rate of 8,000 percent for the foreseeable future (Cheriet et al., 2020). This not
only indicates that consumer demand for this category is expanding, but also that those
elite customers are expected to pay a premium for them. As a consequence, the cost of
5
Christiansen and Marks (2022) established that wines, particularly those that are
naturally rare, are usually offered in bottles. As a result, their prices become
lack the financial means to acquire wines despite their desire to experience their
Proposal:
The creation of a packaging plant in the Philippines, which will supply unique
wine packaging solutions, is the goal of this project. A part of the wine produced in this
innovative packaging will be sold in the burgeoning local market, and a piece of the
friendliness and sustainability. There will be a total of five people involved in the
solutions. David Paul Ambagan, Cesnan Angelo Agbayani, Mark Patag, and John Carlo
The goal of this project is centered on the process of resolving the expensive
prices of wines that are usually sold in bottles. In this light, the creation of a single-serve
wine packaging that may contain luxurious brands available in the market will make it
easier for consumers to acquire and experience them at inexpensive prices. Moreover,
this will also be pursued as a project to cater to the preferences of consumers who
6
Ultimately, another objective of creating single-serve packaging wines will provide an
avenue for consumers to firstly taste the several products in smaller units before
gradually making their decisions in eventually purchasing greater volumes should they
7
A. Proposed Company Logo
The design of the logo symbolizes a minimalist approach to the carefully chosen
text from the inspiration of its brand name and the colors of freshly picked vineyard
grapes and a lighter color of the wine. Since the goal of this feasible study is to produce
an eco-friendly packaging for wines, the earthy tones used in the logo symbolizes
mother nature. As a whole, this represents the innovative packaging solutions that
8
B. Trademark
The brand name chosen by the advocates is inspired by the concept “to drink
wine on the go; anywhere & anytime” thus, the GoWines brand comes to success.
The design of the logo symbolizes a minimalist approach to the carefully chosen
text from the inspiration of its brand name and the colors of freshly picked vineyard
grapes and a lighter color of the wine. Since the goal of this feasibility is to produce an
eco-friendly packaging for wines, the deer symbolizes mother nature. As a whole, this
represents the innovative packaging solutions that GWPS Corp. will provide to its
9
II. Product and Service
wines, whether it may be indoors or outdoors, a product that is fit for any setting to
10
The Gowines’ state-of-the-art packaging is an easy-to-open and 100% high-
quality recyclable PET plastic, an ergonomic shape wine glass that is made from
bamboo fiber that resembles and touches like traditional glass. It comes with a re-
screwable lid that functions with double purpose, a cover, and a coaster. Each wine
glass is wrapped with a clean sheet that satisfies the wine and cocktails to be fresh
and retains the cleanliness of the glass. This product has a volume of 8.45oz
(250ml), measured with 5cm diameter from the top, middle and foot, and standing at
IV. Location
Figure 1.3 & 1.4 Main Office (252 Sen. Gil J. Puyat Ave. Makati Metro Manila)
Figure 1.3 is where the proponents will conduct their procedures located at
Burgundy Corporate Tower, 252 Sen. Gil Puyat Ave. Makati City, while Figure 1.4
11
shows where the production and manufacturing would be observed in a storage facility
in 888 Industrial Megacity Taytay Rizal. At first, the proponents would be renting a 500
m2 space amounting ₱350 per square meters, a total of ₱175,000 that includes services
for storage, production, pick & packaging, monitoring & inventory cost from a third-party
logistics solution company that owns the storage space. The locations aforementioned
are strategically chosen as Makati is the principal city for emerging and established
While the warehouse’s position is also a vital decision for the business model of
the third-party logistics resolutions, it offers not only the storage space but also the
security required, most importantly the production and manufacturing of the products. It
was giving the proponents an expansion plan for the next five years, occupying up to
A. Business Concept
Bottled wines, especially those with a high degree of natural distinctiveness, have
unaffordable level for the majority of clients. As a result, working-class customers are
unable to afford wine, despite their desire to enjoy its flavor and health advantages.
premium brands makes it simpler for customers to get and taste them at low rates. To
further respond to the needs of customers who like to drink wine in smaller portions, this
12
initiative will also be pursued. Creating single-serve packaging wines would
Using GoWines' revolutionary packaging process, the company's clients will get an
amazing product. It is the group's goal to design a product that would fit the needs of
today's consumers. As a consequence of the growing market demand for wine, offering
B. Competitive Advantage
Apart from its portability, the product's quality plastic container resembles the look
and texture of glasses. Additionally, it is a hundred percent recyclable and has a shelf
life of more than 12 months, retaining the essence of the wine and safeguarding it with a
transparent cover and resealable cap that serves as a coaster while maintaining its
integrity. Because of the versatility of creating wines and other beverages in this
composition, customers will be able to choose from a variety of options, whether they
need red wine, white wine, or another flavor of their preference. As a consequence of
the offering of innovative and creative packaging solutions in the single-serve wine
market, wine consumers may now have what they want, whenever and wherever they
13
Ultimately, the company's lower price compared to enterprises who offer bottled
wines will be its key differentiating feature. Wine drinkers who opt to consume just a
little amount of a single flavor while their friends consume a variety of distinctive flavors
will not be obligated to purchase bottles, resulting in frugality in both money and product
use.
packaged in bottles, where customers do not have the luxury of sampling a variety of
wine products due to the unquestionably high costs of such products for the latter.
C. Target Market
The primary target market of the venture will be the income class earners who belong
to the middle class. More precisely, the target market will include all residents of the
Philippines between the ages of 26 and 35, regardless of gender. The product's
pricing associated with single-serve wine packaging. Wines are not new to the modern-
day adult lifestyle. Consequently, GoWines' target market will be people who enjoy the
taste of fine wine without purchasing a whole bottle and those who want the
college post-graduate adults up to the working class, will have no difficulty enjoying
quality wines. GMW Corp. will establish partnerships with the provision of wines
14
independent retailers that seek to enhance and fuel not just the unique product, but also
D. Technological Concept
time that a single-serve wine product will be available. Premium wines are available for
consumption at any time and from any place. A high-quality polyethylene terephthalate
plastic material derived from bamboo fibers is utilized to preserve and maintain the
recyclable PET plastic, an ergonomic shape wine glass created from bamboo fiber that
resembles and touches regular glass, and a wine bottle with a handle that is both easy
to open and a hundred percent recyclable. It includes a rescrewable top that works as
both a cover and a coaster, and it is dishwasher safe. Each glass of wine is wrapped in
a fresh sheet of paper, ensuring that the liquid stays fresh and the glass remains
sparkling clean.
glassware, is durable and resistant to breakage due to mechanical impact, falls, and
extreme temperatures. The packaging built from these basic materials will also be
preservation.
15
E. Business Model Concept
The business model canvas of GWPS Corp. consists of nine blocks as stated
above in Table 1.0, this represents that the customer segments concentrate on the
demographic and behavioral segments. Considering the age, consumers of legal age to
buy premium wines are part of the segment, thus this includes whether it is a family
gathering, couples on a date, or even when alone. Another thing considered is the
customers' buying habits, whether they are high or low spenders or if it is occasional
and for the holidays which leads to wine enthusiasts, on how often they buy. The
the stocks and commodities from the warehouse direct to the stores or the clients'
company. GWPS Corp. will also have promotions and advertisements that will comprise
an essential part of the sales process. The bigger scale we dock as a deal, the better it
16
is for the proponents' progressing forward for expansion, depending on the allegation of
The operations would rely hardly upon the vital resources, which are the
production of the goods. At the same time, the partners will manage the production of
Key activities would include the production, the marketing and promotion and the
sale of the product. GWPS Corp. will have promotions and advertising customized with
our packaging solutions for single-serve beverage products. The distribution of the
product from warehouse to partner stores and thus to consumers is one of the most
important parts of the key activities. All of these are essential aspects to GWPS Corp,
from employees to the supplies, the customers and clients, the logistics company, the
promotion and advertising. Lastly all costs will be indicated in the cost structure of
F. Value Chain
17
Figure 1.5 Value Chain
The value chain, as exhibited in Figure 1.5 is a sequence of ventures that allow the
corporation to operate effectively. The first significant part is regarding the Support
these are technically skilled employees given various tasks that will make the offering a
successful and excellent quality product and services. The second major part is the
Primary activities, describing how daily operations run, from Inbound Logistics,
Operations, Outbound Logistics, Marketing and Sales, and especially with service, all of
these constitute the point where the business progress of operations relies upon to
Why is it Feasible?
♦ Engaging
Many liquor stores and dealers will love our proposed single-serve wine
packaging. They will favor this packaging as it makes it easier to keep track of
exactly how much alcohol their consumers consumed, with the help of portions
divided into separate containers. Individuals who drink occasionally but don’t
Thus, GoWines’ ergonomic idea of a real wine glass-like experience provides the
sexiness to the product. Relaxed vibes for its customers, the spree of how it
18
plastic materials from bamboo fiber is advanced and unique, the twofold purpose
of its re-screwable cap that turns into a coaster is artistic as it does not only
prevents you from spilling your drinks and likewise eludes the mess. All of these
♦ Doable
Curtis Mann, the director of wine, beer, and spirits for Sacramento-based
Raley’s Family of Fine Stores, extended his proficient theories. “We do have
some free-standing displays of cans, but the key is to get them in the cold box.
are just placed in our (wine) set, and we will run promotions on them
To find competitive leverage in this field, there is a need for this innovation in the
market.
♦ Durable
aromas. Wines with a longer shelf life typically maintain a unique varietal aroma
and produce an aged smell. With the GWPS Corp’s packaging solution, it
provides a longer shelf life that other liquor companies don’t have.
19
Nevertheless, in the absence of these characteristics, or with the
development of oxidized and other repulsive odors, the shelf life of wine may be
measured in terms of several months to a few years. The latter may develop as
innovative layout and materials are tested sufficiently before distributing to the
liquor shops and dealers. The glass-like characteristics of its high-quality PET
plastic glassware enable the product to preserve and maintain the freshness of
♦ Profitable
The market for wines is expected to grow annually by 7.9% from 2020 to
transpiring with younger consumers. These changes include the choice for wine
Possibilities for related packaging will benefit from its crucial role in
marketing since it is the packaging that builds a first impression on the wine and
20
can also improve the discernment of the wine’s quality. Glass bottles, the long-
time traditional wine container, will continue to dominate the container mix in
variety of alternative package formats and sizes offering more excellent economy
in single-serve bottles or packaging. 12% said they only buy serve wine most of
the time. 13% do so about half the time. 30% said they rarely ever purchase
single-serve wine. And 35% never do. Conceivably, 33% said they are at least
somewhat likely to buy wine in single-serve packaging within the next year. While
43% said they are unlikely to purchase single-serve wine this year.
And 23% are neutral or uncertain in this case. Those who usually
serve wine and also more likely to drink wine more often. Single-serve wine
new category in the overall wine market. According to Mintel, one of the four
trends that will continue in 2019 is the growth in food and beverage products in
single-serve portions.
beverages for the cost of materials to produce the product is relatively lower.
significant as the demand to have portability for wines and cocktail beverages.
manufacturing of the product but also for the freighting and dissemination of the
21
products, and it is also essential that the brands tied up to the service provided
buy the product. This would be a long-term investment for the scalability would
undergo a drastic transformation for the more shops and other partner stores, the
Smaller format bottles allow wineries to expand into new markets and
This study caters to the emerging dilemmas in the single-serve wine and
beverages that have a long shelf life and conviction that it is entirely fresh and
Now, not only is it profitable for the proponents, they could also execute
with premium brands seeking to grow their brand into the said class. GoWines
will be the absolute answer to the concept of drinking wines in any given setting,
Short-term Objectives
22
▪ To determine various local wine dealers/companies into expanding their business
by being GWPS Corp. 's supplier of wine and incorporating it into the unique
▪ To be the pioneer to introduce and develop the use of PET Plastic made from
Long-term Objectives
▪ To be the best manufacturer of the portable single-serve wines category, not only
in the Philippines but also within the global distribution of premium beverages
▪ To broaden the company's reach for the growth of customer service support and
nationwide.
▪ To be the household name among the industry and chosen category of GWPS
Mission: To contribute a high-quality product with the packaging solutions for the
premium single-serve and ready to drink wine, uplifting the GoWines Manufacturing
23
Vision: To grow as an innovative company and to be the uppermost provider of the
COMPASSION. Compassion makes it easier for GWPS Corp to use the other core
values. When you have compassion, it’s natural to be curious about what leads people
to do what they do, and it’s easier to be transparent about what you’re thinking. That’s
because the questions you ask and the point of view you share stem from your interest
in learning rather than merely judging. When you have compassion, it’s easier to
punishment.l GWPS Corp has compassion, we are more likely to surface everyone’s
ECONOMICAL. The GoWines brand will provide a valuable product, service, and
support to its clients and consumers, especially to help the consumers in tracking and
24
UNIQUENESS OF THE PRODUCT. GoWines is the first in the Philippines to employ
portable single-serve packaging solutions. It gives the GWPS Corp. the advantage in
enticing premium wines and liquor dealers and customers to patronize the product.
that GWPS Corp. can innovate a wine glass made with eco-friendly materials.
assurance for the company, ensuring that none of the supplies and resources persists
in wasting.
necessary for premium wine, beverage, liquor dealers, and consumers as its market
share rises continuously as it also provides eco-friendly awareness for products that
Market Assumptions. During the first months on the market, GoWines may not be
encompassed positively by the clients, as this is a new and unique classification. Still,
GWPS Corp. will persuade the consumers as they introduce the product to solve the
25
Brand Awareness. This allows GoWines to promote its product and services
● In the second year of operation, it will generate a 33% increase in sales through
the premium wine, beverages, and liquor dealers GWPS Corp. has partnered
with.
● Also in the second year, GWPS Corp. anticipates to breakeven with their
investments and regularly increase their market share. With this, they can gain
26
G. Feasibility Criteria
The following criteria will be used to prove the feasibility of the product:
● Availability of suppliers. Providing the raw materials needed for the product,
premium wine, beverage, and liquor dealers and the custom-made wine glass
distribution of products.
27
Chapter 2
Environmental Analysis
A. Political/Legal Factors
acts prohibited and providing penalties, appropriating funds, and for other
constancies.
program that shall ensure the protection of the public health and environment.
practices for companies using solid waste such as plastic to avoid and reduce waste
materials that cause harm to the environment. Those mentioned above encourage
disposal of solid waste. Concerning GWPS Corp. and the GoWines product, the
proponents will provide a portable single-serve packaging solution made from PET
Republic Act 10963: Tax Reform for Acceleration and Inclusion (TRAIN)
An act amending a series of sections all under Republic Act No. 8424, otherwise
known as the National Internal Revenue Code of 1997. Enhancing the progressivity
of the tax system through the rationalization of the Philippine internal revenue tax
28
and their families to improve levels of disposable income and increase economic
activity; and ensuring that the government can provide for the needs of those under
its jurisdiction and care through the provision of better infrastructure, health,
B. Economic Factors
into more reliable job creation and faster poverty reduction. In October, more than a
million jobs were created since the same month last year, while the unemployment
rate fell to its lowest level in 10 years at 6 percent. The reduction in poverty
incidence between 2012 and 2013 also indicates that growth is becoming more
inclusive. Furthermore, the 2013 Annual Poverty Indicators Survey (APIS) suggests
that the bottom 20 percent's real income grew much faster than the rest of the
population. The survey confirms that the government's conditional cash transfer
(CCT) program is well-targeted and reaching the poor, as indicated in the substantial
Going forward, the Philippines needs to accelerate reforms that can translate
higher growth into more inclusive growth—the type that creates more and better jobs
—so that poverty can be reduced massively and prosperity shared by more people.
Already, between 2012 and 2013, the growth elasticity of poverty—the rate at which
between 2006 and 2012. If these trends are sustained, the government's goal of
29
reducing poverty to 18-20 percent by 2016 is attainable. Over the long-term, if
growth is sustained at 6 percent per year, per capita income can double within one
decade, grow five times in 2 decades, and reach 11 times in 3 decades. If the
growth elasticity of poverty remains high, poverty can be eradicated within a single
government's poverty reduction efforts because agriculture is where most of the poor
find a livelihood.
already well- known policy agenda of structural reforms. The key reform areas are:
enterprises
This policy plan, which benefits from a broad consensus among local and
report, "Creating more and better jobs." This edition of the PEU elaborates on the first
two recommendations.
education, are vital to inclusive growth. The effects of lagging infrastructure investment
30
and some policy recommendations are discussed in detail in the following individual
focus sections:
● Congestion in Metro Manila and its impact on the economy: In the last
However, the real solution lies in taking measures to create new and
● Luzon's potential power sector shortages and the way forward: Luzon
may suffer power shortages between April and May of 2015, brought
catastrophic power crisis in 2015. However, the country still faces many
issues around high power cost and supply constraints. To address these
the power retail sector to improve service and bring prices down, among
31
● Reviving Philippine electronics exports: Between 1980 and 2008,
export product in the 2000s. However, since the 2008 global financial
trade barriers.
Overall, the country has an investment gap (both physical and human capital) of
efficiently collecting existing taxes) can generate about 3.8 percent of GDP in fiscal
space over the medium-term to finance the investment gap. The balance of 3 percent
needs to come from tax policy reforms. Tax administration reforms include simplifying
tax procedures and processes to facilitate compliance, and lifting the excessively
restrictive bank secrecy laws, making it very difficult to catch tax frauds. Globally,
excluding offshore financial centers, only Switzerland and Lebanon have similar
restrictive bank secrecy provisions, but the former is committed to relaxing it soon. A
more equitable, efficient, and more straightforward tax system should be the aim of any
tax policy reform. The following reforms can be considered. First, tax incentives should
temporary. This should include the timely release of a tax expenditure statement, which
enumerates all existing tax incentives and benefits them. Second, tax rates and
32
valuations which have not kept up with inflation should be adjusted to improve the tax
system's equity. Examples are petroleum excise taxes and property valuations, which
have not been updated for decades. Rapidly falling oil prices provide an opportunity to
adjust petroleum excise taxes to make the tax system more equitable. This should be
C. Socio-Cultural Factors
Wine has been part of countless traditions and celebrations, even in religion, its
endorsement is generally acclaimed, and the single-serve wine has been taking its
and high-class Filipinos are starting to bring demand to wine. Some of this occurs in
events or parties as most people want to add class to this formal gathering. The
popularity of wine provides a market to the GoWines product, the packaging solution for
individuals who wish to keep track with their alcohol intake, the single-serve wine is an
invention for consumers in this different level. Besides, people care about the
environment, the packaging product that the GWPS Corp. assures is an eco-friendly
product, a PET Plastic Product made from Bamboo-Fiber materials that senses and
33
D. Technological Factors
The industrial technology rendered by the manufacturing partner, Filpet Inc., will
produce the designed product, and the technology behind the product is a wine glass
made from PET Plastic using bamboo-fiber as its core element. This eco-friendly
product feels and looks like real glassware, suitable for any Premium Wines,
Beverages, and Liquors. The single-serve packaging provides portability to the product,
a solution for the interest of drinking anywhere and anytime. Figure 2.0 visualizes the
manufacturing process during the development of the product as well as the quality
34
Chapter 3
Industry Analysis
A. Industry Overview
The global wine packaging market is segmented into leading regions such as North
America, Europe, Asia Pacific, and Rest of the World. The global consumption of wine
across North America and Europe. The growing wine consumption across North
America and Europe economies is moving the succeeding wine packaging market.
Whereas, the growth in wine consumption across major Asia Pacific countries with
changing lifestyle and alcohol consumption patterns, acts as a critical driver for an
The packaging manufacturers across the globe are highly focusing on improvising
the distribution process through economies of scale. These economies of the levels are
primarily monitored across the wine packaging manufacturers to optimize the assets
Moreover, the growing need to increase the packaging safety concerns among the
consumers is launching the demand for ancillary wine packaging such as carton
partitions, trays, racks, boxes, and barrels, among others. These factors are highly
stoking the market across the wine packaging manufacturers operating in the prominent
35
The wine packaging industry is unswervingly allied to the wine manufacturing
industry. The wine market has witnessed remarkable growth over recent years. It is
expected to retain this over the forecast period, owing to several benefits associated
with the wine, namely taste, and health aids. The health-conscious citizens have
emerged as one of the largest consumers across the globe, leading to more massive
wine production, consistently driving the wine packaging market. Moreover, wine is
related to some of the packaging raw materials might act as restraints to the market
growth. In opposition to these factors, companies along the packaging and wine
producers are highly focusing on new material innovation to comply with modern
ecological standards.
economic spending power of the middle class. As a result of the growing disposable
income among consumers, wine will benefit from this economic trajectory as it is
The continued expansion of restaurants and bars, which offer wine by the glass and
by the bottle, provides an excellent vehicle for consumers to sample different brands
and products. On-trade establishments present an avenue for consumers to enjoy wine
36
B. Michael Porter’s 5 Forces:
focused brand, the product that the proponents offer are unique in the business, not
only the product is made of eco-friendly products, but the demand is present when it
The reach of its target market is not limited only to the liquor manufacturers but
as well as with the consumers that should be on legal age but its availability and need
by classic beverages enthusiast that appreciates the class of the product and also the
ability of the consumers to keep track of their alcohol intake, which will be capitalized by
GWPS Corp.’s clients that offer premium wine, beverages & liquor selling the packaging
37
● Bargaining Power of Suppliers: Medium
In the industry of providing premium wine, beverages, and liquors, there are
numerous contentious suppliers that GWPS Corp. could use to utilize the GoWines
brand, the proponents’ product and services have many sources of their raw materials
to choose from. This means that suppliers of the raw materials for the product would not
be difficult. Thus, they cannot drive the prices unless there is a crisis of getting a
made from bamboo fiber, producing a product that feels and looks like real glassware is
a market that could attract new competitors. What makes the GoWines product unique
is the better oxygen management system & headspace control that the bamboo fiber
38
offers to provide, which makes the shelf life of specialty drinks placed in this packaging
products’ expiration due longer and keeps it safe all the time as shown on Figure 3.1.
If a new competitor was capable of coming up with a better solution against this
product, then the threat is high for the GoWines brand. To dodge this, there should be
continuous improvement & research processes for the packaging product and its
benefits.
A patent provides its owner with the right to exclude others from exploiting the
licensed technology, including, e.g., making, using, or selling the patented invention.
This “exclusive right” enables the patent owner to regain development costs and obtain
security stimulates research and is an essential requirement for raising venture capital.
It is also crucial to overall economic growth. A company that decides to file patent
applications should foster a strategic approach that obtains value from patents while
minimizing costs associated with getting the licenses. As long as the technology of the
product would be registered, then it secures threats against the substitution of the
product. With constant development for the packaging solution, the appeal of GoWines
will increase its sales on the market, and this shows the importance of product
39
● Rivalry Among Existing Competitors: Medium
The competitive rivalry in this industry is in a neutral position, for there may be
existing packaging products in the market. Still, GoWines will be the home brand in the
packaging solutions category that utilizes the use of bamboo fibre in the production of
its product, its 100% recyclable, eco-friendly, and most of all, its functions to feel and
look like real glassware that provides longer shelf life. The exact amount needed to be
consumed by the consumer, freshly sealed premium wine, beverages, and liquor.
However, it requires a high value of the capital investment as there is a need to improve
the product and the base maintenance continuously, at the same time, the competition
in this market in the Philippines is still in the medium for the offered product of GWPS
40
C. SWOT Analysis
Figure 3.2 shows the SWOT Analysis, evaluates external and internal factors that
the product and services provided. On the other hand, GWPS Corp. has interior impacts
that feature the strengths and weaknesses. As the GoWines brand focuses on
analyzing external factors, thus recognizing and practical strategies to maximize the
41
Chapter 4
Market Analysis
The proponents used purposive sampling for the research design of this feasibility study. The
said sampling technique is also known as judgmental, selective or subjective sampling, and it is
a non-probability sampling technique that gradually relies on the particular group that was
a. Survey Results
Employment Status
Employment Status
0.01;3%
0.01;
0.03; 1%
1%
0.95; 95%
Figure 4.2 depicts the occupational status of respondents who consume wine. It was
discovered that 95 percent of respondents are considered employed, suggesting that they
constitute a majority of those who answered the survey questions. A further 3 percent of
students composed the respondents who consumed wine. Conversely, self-employed and
42
unemployed respondents came in last, accounting for only 1 percent of the whole sample. As
the total number of respondents were topped by employed individuals who accounted for
almost a hundred percent, this implies that most wine drinkers are already individuals who
Monthly Allowance/Income
2%
2%
40%
56%
Amounts of money earned by wine consumers on a monthly basis are shown in Figure 4.2.
Every month, the majority of respondents who answered the survey earn between Php1,000
and Php5,000. With a rate of 56 percent, this group is the most frequent wine consumer in the
Philippines. In the second place, 40 percent of the sample earn a monthly salary of Php 11,000.
It was only around 2 percent of wine drinkers earning between Php11,000 and 15,000 fell into
the third category, which also included wine consumers earning Php16,000 or higher. An
43
average income that falls under the range of Php 1,000-5,000 on a monthly basis is considered
to belong at a category below the average monthly wage in the Philippines. In this light, since
most wine drinkers belong within this monthly income range, the creation of a single-serve
wine will particularly help them to have access to drinking their preferred wines due to their
lower costs.
3%
97%
Figure 4.4 shows that the bulk of wine drinkers are between the ages of 26 and 35, with 97
percent being between this age bracket. Additionally, a total of 3 percent of those between the
ages of 16 and 25 who consume wine fall into the second category, which is a statistically
significant difference when compared to the first group in terms of numerical rate. Wine
drinkers between the ages of 36 and 50, as well as those above the age of 51, came in bottom
place with a 0% participation rate. With such a large proportion of wine drinkers falling within
44
the age range of 26-35 years old, it is fair to presume that the vast majority of wine drinkers are
7%
93%
In Figure 4.5, it can be seen that 93 percent of the clients are from inside Metro Manila,
with just 7 percent coming from outside the locale. This relates to the primary target market of
"Go Wines," whereby the fact that the majority of the customers dwell within Metro Manila,
which is a large market and a hub of trade, the probability for the effective dissemination of the
45
30%
70%
Customers who purchase wine are looking for cost as well as flavor, as illustrated in Figure 4.6.
70 percent are concerned with price, whereas 30 percent are simply concerned with flavor, and
0 percent are concerned with presentation quality. It may be extrapolated that the majority of
wine customers select wines that are less expensive while only secondarily considering the
quality of the wine. As a result, the introduction of single-serve wines will increase the capacity
of customers to buy more wines since, in contrast to bottled wines, single-serve wines will
11%
22%
23%
44%
46
As seen in Figure 4.7, 44 percent of wine customers buy wines three times a month,
making it the most important category in this regard. According to the Wine Institute, 22
percent of wine customers purchase four times a month, 11 percent purchase twice a month,
are already purchasing wines three times per month, which is considered to be a regular
purchase. In this context, the development of single-serve wines will be a wise decision since
there is a large demand for wine, and packaging it in this novel manner may enhance the
Price Preference
4% 10%
36%
50%
Figure 4.8 reveals that 50% of those who want to consume wines are prepared to spend
between Php151 and Php200 for the privilege. In the next two categories, 36 percent are
prepared to pay Php101-150, and ten percent are willing to pay a value of Php51-100. Wine
47
customers who are prepared to spend Php 201 and more for the process of buying wines are at
the bottom of the list, accounting for barely 2 percent of the total. This means that when it
comes to buying wine, the majority of customers want cheap pricing that are in line with their
tastes. In this context, the introduction of single-serve packaged wine would make it feasible for
such customers to achieve their objectives of purchasing wines that are within their financial
reach.
5%
95%
YES NO
Figure 4.9 illustrates the significance of packaging wine from the vantage point of
consumers. With a numerical rate of 95%, most of the respondents consider packaging to be an
important aspect that accompanies the product, such as wine in this circumstance. Ferrell et al.
strategy that helps to build brand recognition, highlights the product's best features, and
creates a positive customer experience that is long remembered. In this light, packaging may
serve as a doorway not only for the attractiveness of the product, but also for the success of the
business venture.
48
6%
Figure 4.10. 8%
86%
Figure 4.10 elaborates the impact of advertisements when it comes to the attraction of
consumers to drinking wine. It was yielded that Facebook advertisements are the most
of 86%. This was followed by YouTube advertisements and Instagram advertisements which
placed second and third with 8% and 6% respectively. Facebook advertisements prove to be the
most influential in this aspect as reflected by the fact that it is the most frequently utilized
social networking site on the planet, according to statistics (Alalwan et al., 2017).
3%
97%
YES NO
49
Figure 4.11 establishes the willingness of wine consumers to purchase the product. It
was yielded that 97% of consumers are willing to buy the product as opposed to only 3% who
are not willing to buy the product. The buying and consumption of wine are two themes that
have piqued the attention of wine researchers across the globe. According to Loureiro and da
Cunha (2017), to get a greater understanding of the intricate nature of wine buying, researchers
should focus not just on demographics but also on purchasing power and perception, as the
B. Distributor
The GoWines Brand distributes to all ages from 18-80+ and wine enthusiasts which will be
• Supermarkets
• Liquor Shops
• Convenience Stores
• Hotels
• Restaurants
• Direct Sale
C. Market Projection
In determining the market projection, the proponents figured out the willingness of wine
producers to use the packaging. To calculate the final projected market demand, the
researchers gathered the annual production of wine in the Philippines. Correlating this with the
50
percentage of producers who make red wine and are willing to use the packaging and
multiplied to four since four glasses with 250ml can be made from a one liter bottle of wine as
shown in Figure 4.8 below. A total of 2,581,333 would be the target demand for this research.
In determining the projected demand for wine by the glass in the industry, the respondents
surveyed 15 wine producers in the Philippines. To derive the forecasted demand, the
proponents multiplied the willingness to use the packaging and the potential demand. The
compounded annual growth rate(CAGR) of wine consumption for the following years would be
7.8%
51
E. Supply Analysis
There is no supply of wine by the glass in the country yet. GWPS Corp. would be the prime
Market Share in
Year Market Demand Market Supply Market Gap Share Market Gap
2021 2,782,678 0 2,782,678 5% 139,134
2022 2,999,726 0 2,999,726 6% 179,984
2023 3,233,705 0 3,233,705 7% 226,359
2024 3,485,934 0 3,485,934 8% 278,875
2025 3,757,837 0 3,757,837 9% 338,205
Figure 4.11 Demand and Supply Gap
As shown in Figure 4.11 above, GWPS Corp. needs to produce 139,134 units in the first year,
representing their 5% market share. The market share of the company is estimated based on
the capacity of the company to produce the product. The market share of the company
increases by 1 % every year since it is expected that the company will have enough resources
G. Price Study
The pricing strategy relies on minimizing the product cost but not sacrificing the quality of the
product. The Selling Price of the product includes 12% Output VAT and ₱12.5 Excise Tax, which
according to BIR, for all types of wines, the excise tax is ₱50.00 per liter. But since the product
52
consists only of 250ml, ₱50.00 is multiplied by 0.25 to get the Excise Tax for the product. The
components of the product cost are shown below with the expected markup rate.
The cost of Novellino Wine based on the Memorandum Agreement is at ₱240 per 750ml. Each
Wine Glass contains approximately 250ml. Therefore, per glass of Novellino is ₱80. Another
component of the cost is the Wine Glass which costs ₱19 each based on the Memorandum
Agreement. The expected Gross Profit rate for the product is 47.33% of the product cost. The
53
H. Marketing Plan
• Product
The GoWines brand produces a product that serves as a service that features eco-friendly
single-serve packaging solutions for premium wines, beverages, and liquors. The product is
made from bamboo-fibre materials that help to look and feel like real glassware.
• Price
GWPS Corp. will apply a premium price strategy to establish a proper brand identity for the
GoWines product for its unique features compared to its competitors. The goal is to partner
with local wineries and wine dealers. GWPS Corp. 's packaging solutions will be more natural to
comprehend the market for single-serve packaging, providing exceptional quality of customer
service satisfaction.
• Place
GWPS Corp.'s main office will be located at Makati City, the known business district in NCR. The
warehouse will be established from Taytay, Rizal, for that is the location of the third-party
logistics company GWPS Corp. has partnered with, managing the operations in the main office
while tracking the manufactured products from the warehouse following to the clients within a
• Promotion
Sales through channels like supermarkets, convenience stores, liquor shops, hotels, restaurants
and direct selling will be the most suitable choice for selling the product. The GoWines brand
54
will be introduced to the market by the local wineries, through the channels and through
advertisements, boosting GWPS Corp.’s name. This will introduce the product to the market
and to their competitors, allowing the GWPS Corp. to build and develop a connection with its
55
Chapter 5
Technical Study
GWPS Corp. will operate distribution through channels like partner stores, supermarkets, liquor
shops, convenient stores, hotels, restaurants and through direct selling. The GoWines brand will
distribute the product after it is produced by the agreed suppliers. Possessing this distribution
strategy allows the proponents to maintain opportunities coming as the company enters the
market, provided the research staff connects the GoWines brand to a competent partner store
with a highly rated evaluation on their products to carry the marketing strategy to GWPS Corp.
56
EQUIPMENT PRICE QUANTITY TOTAL COST SUPPLIER
57
C. Building and Facilities
Figure 5.1 displays the office layout for operations, the corporate office location of GWPS Corp.
will be located at Burgundy Corporate Tower, 252 Senator Gil Puyat Avenue, Makati, Metro
Manila. The office location is proven to be part of the business district accessible for the clients
to have a transaction with and vice versa. The floor area is 12x14sqm. It consists of a receiving
area and front desk to accommodate customers, a comfort room for both genders, two storage
58
D. Calendar of Activities
Presented in Figure 5.2 is the pre-operating activities of GWPS Corp. The whole process would
take ten months of preparation to have the business start its operations. The following events
will begin in 2022, guaranteeing that there is constant growth and prominence for the GoWines
brand before it enters the market with its features for packaging solutions.
59
E. Operations
Gross Annual
Position Monthly Salary
Salary
Chief Executive Officer 50,000 600,000
Quality Assurance Manager 20,000 240,000
Finance Manager 20,000 240,000
Human Resource Manager 20,000 240,000
Sales Manager 20,000 240,000
Associates 13,000 156,000
Receptionist 13,000 156,000
Security Guard 9,000 108,000
Janitor 8,000 96,000
Total 173,000 2,076,000
POSITION QUALIFICATION
60
● Bachelor’s Degree in Accountancy
● Certified Public Accountant
● At least six years of experience
Finance Manager
● Proficient in analyzing, statistics, economics, finance
and accounting
61
● High school graduate
Janitor ● At least eighteen (18) years of age but not more than
fifty (50) years old
62
Chapter 6
Management Study
A. Organizational Plan
The GWPS Corp. is an entity dominated by shareholders wherein the capital stock is divided
equally to its members, although corporations are complicated and costly, it provides a
business composition that is capable of providing security and flexibility for its shareholders.
Also, a corporation has a persistent existence, which empowers the business to operate despite
the precise failure of a shareholder or anyone with a management position. The business
between its employees effectively, reducing redundant positions, as shown in figure 6.0. Each
Manager also has an associate that would assist him or her in his or her day-to-day activities.
63
POSITION JOB DESCRIPTION
Finance Manager Assures the financial status and capability of the company
Sales Manager Prospects and ensures the contract with the client
Corporation Policies
It is essential for GWPS Corp. that all of its employees observe strict compliance on its regular
working hours (8hrs a day per employee for five days a week), the employee should value the
overtime, and under time; deductions or bonuses will be applied given the related
circumstances.
· Equal Opportunity
GWPS Corp. implements opportunities to its employees regardless of its gender preference,
race, and religion. This avoids any discriminatory practices, thus achieving a workplace where
64
· Performance Evaluation
GWPS Corp. pledges to deliver equal opportunities. Also, the company likes to recognize every
employee’s hard work and dedication to making this business prosperous. Thus, a performance
evaluation will be done quarterly to assess the level of performance an employee provides to
the company.
Each corporation is required to follow a law that protects the information of the business itself
or any individual. The Data Privacy Act of 2012 is the policy of the State to protect the
fundamental human right of privacy of communication while ensuring the free flow of
information to promote innovation and growth. The State recognizes the vital role of
government and the private sector are secured and protected. (Republic Act No. 10173)
GPT Corp.’s employees should never practice fraudulent acts such as bribery, theft, stealing,
and breaking any government laws and other violations that could reflect a negative image for
the company. This will be subjected to termination of the contract, and a possible lawsuit
65
Benefits & Compensation of Employees
· Salaries
· Parental Leaves
· Other Leaves
Legal Requirements
· Basic Requirements
o SEC Registration
o DTI Registration
o BIR Registration
66
o DOLE Registration
o Building Permit
o Occupancy Permit
o Sanitary Permit
o Zoning Clearance
a) Corporate Strategy
The corporate strategy of GWPS Corp. is to align its operation with its Mission, Vision, and Core
Values. Striving to fulfill long-term objectives, GWPS Corp. efficiently. GWPS Corp will partner
with a wine dealer to successfully bring the product to the market, emphasizing its unique
67
b) Manufacturing, Production, and Quality Assurance
One of the Raw Materials of GWPS Corp. will be manufactured by Filpet Inc. as part of their
partnership to build and produce the GoWines product. A functional Quality Assurance
Manager will be hired to assess the final product produced before it is sold to the clients.
All finished products will be pick-and-packed by WEEXT Logistics Inc., another associate of
GWPS Corp. that will handle the storage, monitoring, and distribution of the finished products
to the end consumers acquired by the sales team. Overall the sales of the packaging product
will be managed and monitored by the marketing department which develops marketing and
advertising strategies for the GoWines brand to be recognized as the single-serve leading wine
by the glass, aiding the corporation to grow and be profitable, defining long-term strategic
marketing plans.
The HR Department will provide a vital role in developing the necessary requisites of the
company, hiring the right professionals to make the business successful; it’s their responsibility
to mold. It guides the employees towards growth and leadership development for every
All shareholders have equal assets invested in the business. All of the investment capital, profit,
and assets, as well as debts, loans, maintenance, or anything involved with financials, will be
68
f) Other Strategies
· Contingency Plan
In the case something unforeseen that will provide discrepancies to the operation of GWPS
Corp. the Quality Assurance Manager and Industrial Engineer will evaluate the severity of the
situation and apply precautionary solutions to solve the problems that inflict the business, may
it be from the supplier, manufacturer, logistics or distribution that might complicate the client,
they will be handled immediately, this will be the priority of the operation if this occurs that’s
why monitoring is set to prevent this ensuring effective, efficient, and exceptional customer
satisfaction.
· Exit Plan
If the shareholder/s decide to retire, they may sell their shares to possible investors at a higher
or equal valuation. However, when the market and industry are weak, leading to a negative
profit, the shareholders will liquidate the corporation instead, selling all assets that are in good
condition.
69
Chapter 7
Financial Study
2. The business will be established under a corporation owned by five (5) incorporators
who are:
3. They will have a starting capital of 3,610,000 which is distributed equally by the
incorporators.
4. The business expenses will increase by 2%, 2%, 3%, 2%, 1%, and 5% which are for Direct
for inflation.
6. Salaries will be paid once a month. If the timeframe is less, it will be at least when the
7. Mandatory contributions (SSS, PHIC, HDMF) are remitted the following month.
8. All of the company’s suppliers of goods and services are VAT registered.
9. Sales will increase by 10%, 50%, 5%, 5% each year which reflects the increase in
10. For simplicity, the ending and beginning balance for inventories of each year will be
equal to the one (1) week consumption for the next financial year.
70
b. Budgeted Statement of Income
GWM Corp.
Budgeted Statements of Income
(Amounts in Philippine Peso)
For the years ending December 31,
Net Income/(loss) before Income Tax 231,760 779,092 864,122 907,047 1,001,319
Provision for Income Tax (20%) Note 6 (46,352) (155,818) (172,824) (181,409) (200,264)
Net Income/(Loss) after Tax 185,408 623,274 691,298 725,638 801,055
Share Capital, Beginning Balance Project Cost - 1,300,000 1,300,000 1,300,000 1,300,000
Add: issuance of Shares 1,300,000 - - - -
Share Capital, Ending Balance 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000
Balance, December 31
Retained Earnings, Beginning Balance - 148,326 646,945 1,199,983 1,780,493
Add: Net Income SOI 185,408 623,274 691,298 725,638 801,055
Less: Cash Dividends (20% of Net Income) (37,082) (124,655) (138,260) (145,128) (160,211)
Retained Earnings, Ending Balance 148,326 646,945 1,199,983 1,780,493 2,421,338
71
d. Budgeted Statement of Financial Position
GWM Corp.
Budgeted Statements of Financial Position
(Amounts in Philippine Peso)
As of December 31,
Non-Current Assets
Property, Plant, and Equipment, Net Sched. H 366,786 307,128 247,470 187,811 128,153
Total Non-Current Assets 366,786 307,128 247,470 187,811 128,153
Shareholder's Equity
Share Capital (Par Value: ₱100 Per Share) SCOE 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000
Retained Earnings 148,326 646,945 1,199,983 1,780,493 2,421,338
Total Shareholder's Equity 1,448,326 1,946,945 2,499,983 3,080,493 3,721,338
TOTAL LIABILITIES & OWNER'S EQUITY 1,522,614 2,119,170 2,684,163 3,273,192 3,927,244
72
e. Budgeted Statement of Cash Flows
GWM Corp.
Budgeted Statements of Cash Flows
(Amounts in Philippine Peso)
For the years ending December 31,
Sales
Year Product Price Units Sales (PHP)
2022 GoWine 199 16,190 3,221,810
2023 GoWine 209 28,010 5,852,690
2024 GoWine 219 28,030 6,149,712
2025 GoWine 230 27,710 6,383,480
2026 GoWine 242 27,740 6,709,911
73
GWM Corp. Sched. D
Computation of Output VAT
(Amounts in Philippine Peso)
For the financial years 2022 to 2026
Fixed Costs
Insurance 2,500 2,500 2,500 2,500 2,500
Rent 175,000 178,500 182,070 185,711 189,426
Total Fixed Costs 177,500 181,000 184,570 188,211 191,926
74
GWM Corp. Sched. G
Cost of Goods Sold (Direct Materials)
(Amounts in Philippine Peso)
For the financial years 2022 to 2026
2022
Product Cost / Unit Units DM
2022 GoWine 55.00 16,190 890,450
2023 GoWine 56.65 28,010 1,586,767
2024 GoWine 58.35 28,030 1,635,536
2025 GoWine 60.10 27,710 1,665,371
2026 GoWine 61.90 27,740 1,717,189
GWM Corp. Sched. H
Cost of Goods Sold (Direct Materials per Unit)
(Amounts in Philippine Peso)
For the financial year 2021-2026
75
GWM Corp. Sched. J
Schedule of Utilities Expense
(Amounts in Philippine Peso)
For the years ending December 31,
Hours
Used per
KwH Day 2021 2022 2023 2024 2025
Office
Light Bulbs (10 pcs) 0.50 7 4,730 8,386 8,554 8,758 8,933
Total (Electricity) 4,730 8,386 8,554 8,758 8,933
Total Utilities
8,949 14,491 14,747 15,042 15,308
Expense
76
GWM Corp. Sched. K
Net Salaries Computation
(Amounts in Philippine Peso)
For the financial years 2022-2026
77
GWM Corp. Sched. L-1
Shedule of SSS, PHIC and HDMF - Employer Contribution
For the years 2022 to 2026
Monthly No. of
Position Qnty. SSS PHIC HDMF Total ER
Salary Months
Chief Executive Officer 50,000 1 7 15,085 3,850 7,000 25,935
Quality Assurance Manager 20,000 1 7 12,110 1,925 2,800 16,835
Finance Manager 20,000 1 7 12,110 1,925 2,800 16,835
Human Resource Manager 20,000 1 7 12,110 1,925 2,800 16,835
2022
Monthly No. of
Position Qnty. SSS PHIC HDMF Total ER
Salary Months
Chief Executive Officer 52,500 1 12 25,860 6,600 12,600 45,060
Quality Assurance Manager 21,000 1 12 21,780 3,465 5,040 30,285
Finance Manager 21,000 1 12 21,780 3,465 5,040 30,285
Marketing Head 21,000 1 12 21,780 3,465 5,040 30,285
2023
Monthly No. of
Position Qnty. SSS PHIC HDMF Total ER
Salary Months
Chief Executive Officer 55,125 1 12 25,860 6,600 13,230 45,690
Quality Assurance Manager 22,050 1 12 22,800 3,638 5,292 31,730
Finance Manager 22,050 1 12 22,800 3,638 5,292 31,730
Marketing Head 22,050 1 12 22,800 3,638 5,292 31,730
2024
Monthly No. of
Position Qnty. SSS PHIC HDMF Total ER
Salary Months
Chief Executive Officer 57,881 1 12 25,860 6,600 13,892 46,352
Quality Assurance Manager 23,153 1 12 23,820 3,820 5,557 33,197
Finance Manager 23,153 1 12 23,820 3,820 5,557 33,197
Marketing Head 23,153 1 12 23,820 3,820 5,557 33,197
2025
Monthly No. of
Position Qnty. SSS PHIC HDMF Total ER
Salary Months
Chief Executive Officer 60,775 1 12 25,860 6,600 14,586 47,046
Quality Assurance Manager 24,310 1 12 25,350 4,011 5,834 35,196
Finance Manager 24,310 1 12 25,350 4,011 5,834 35,196
Marketing Head 24,310 1 12 25,350 4,011 5,834 35,196
2026
78
GWM Corp. Sched. L-2
Shedule of SSS, PHIC and HDMF - Employee Contribution
For the years 2022 to 2026
Monthly No. of
Position Qnty. SSS PHIC HDMF Total ER
Salary Months
Chief Executive Officer 50,000 1 7 7,875 3,850 7,000 18,725
Quality Assurance Manager 20,000 1 7 6,300 1,925 2,800 11,025
Finance Manager 20,000 1 7 6,300 1,925 2,800 11,025
Human Resource Manager 20,000 1 7 6,300 1,925 2,800 11,025
2022
Monthly No. of
Position Qnty. SSS PHIC HDMF Total ER
Salary Months
Chief Executive Officer 52,500 1 12 13,500 6,600 12,600 32,700
Quality Assurance Manager 21,000 1 12 11,340 3,465 5,040 19,845
Finance Manager 21,000 1 12 11,340 3,465 5,040 19,845
Marketing Head 21,000 1 12 11,340 3,465 5,040 19,845
2023
Monthly No. of
Position Qnty. SSS PHIC HDMF Total ER
Salary Months
Chief Executive Officer 55,125 1 12 13,500 6,600 13,230 33,330
Quality Assurance Manager 22,050 1 12 11,880 3,638 5,292 20,810
Finance Manager 22,050 1 12 11,880 3,638 5,292 20,810
Marketing Head 22,050 1 12 11,880 3,638 5,292 20,810
2024
Monthly No. of
Position Qnty. SSS PHIC HDMF Total ER
Salary Months
Chief Executive Officer 57,881 1 12 13,500 6,600 13,892 33,992
Quality Assurance Manager 23,153 1 12 12,420 3,820 5,557 21,797
Finance Manager 23,153 1 12 12,420 3,820 5,557 21,797
Marketing Head 23,153 1 12 12,420 3,820 5,557 21,797
2025
Monthly No. of
Position Qnty. SSS PHIC HDMF Total ER
Salary Months
Chief Executive Officer 60,775 1 12 13,500 6,600 14,586 34,686
Quality Assurance Manager 24,310 1 12 13,230 4,011 5,834 23,076
Finance Manager 24,310 1 12 13,230 4,011 5,834 23,076
Marketing Head 24,310 1 12 13,230 4,011 5,834 23,076
2026
79
GWM Corp. Sched. L-3
Shedule of SSS, PHIC and HDMF - Contributions
For the years 2022-2026
Year 2023
Employer's Share ₱ 159,360 ₱ 27,910 ₱ 43,596 ₱ 230,866
Employee's Share 83,160 27,910 43,596 154,666
Total ₱ 242,520 ₱ 55,820 ₱ 87,192 ₱ 385,532
Year 2024
Employer's Share ₱ 166,500 ₱ 28,975 ₱ 45,776 ₱ 241,251
Employee's Share 86,940 28,975 45,776 161,691
Total ₱ 253,440 ₱ 57,950 ₱ 91,552 ₱ 402,942
Year 2025
Employer's Share ₱ 173,100 ₱ 30,094 ₱ 48,065 ₱ 251,259
Employee's Share 90,180 30,094 48,065 168,339
Total ₱ 263,280 ₱ 60,188 ₱ 96,129 ₱ 419,597
Year 2026
Employer's Share ₱ 181,770 ₱ 31,269 ₱ 50,468 ₱ 263,507
Employee's Share 94,770 31,269 50,468 176,507
Total ₱ 276,540 ₱ 62,537 ₱ 100,936 ₱ 440,013
80
GWM Corp. Sched. M
Cost of Goods Sold
(Amounts in Philippine Peso)
For the years ending December 31,
81
GWM Corp.
Notes to Financial Statements
(Amounts in Philippine Peso)
For the years ending December 31,
2 Input Tax
2022 2023 2024 2025 2026
Beginning Balance - - - - -
Inventories 106,854 190,412 196,264 199,844 206,063
Insurance 240 240 240 240 240
Utilities 1,074 1,739 1,770 1,805 1,837
Property, Plant, and Equipment 47,641 - - - -
Current year Input Tax 155,809 192,391 198,274 201,889 208,140
Used Input Tax to pay Output Tax 155,809 192,391 198,274 201,889 208,140
Ending Balance - - - - -
82
5 Advertising Expense
2022 2023 2024 2025 2026
Other expenses allocated to marketing 7,000 12,120 12,241 12,364 12,487
Total Advertising Expense 7,000 12,120 12,241 12,364 12,487
83
g. Financial Analysis
h. Financial Ratios
GWM Corp.
PROFITABILITY RATIOS
GWM Corp.
LIQUIDITY RATIOS
Current Ratio 14.27 : 1.00 9.13 : 1.00 11.22 : 1.00 13.4 : 1.00 15.25 : 1.00
Current Assets 1,143,081 1,750,652 2,308,299 2,885,496 3,521,457
÷ Current Liabilities 80,082 191,702 205,783 215,375 230,939
Quick Asset Ratio 13.82 : 1.00 8.94 : 1.00 11.03 : 1.00 13.22 : 1.00 15.07 : 1.00
Cash 1,106,914 1,713,229 2,269,860 2,846,435 3,481,317
÷ Current Liabilities 80,082 191,702 205,783 215,375 230,939
GWM Corp.
SOLVENCY RATIOS
Debt to Equity Ratio 0.06 : 1.00 0.1 : 1.00 0.09 : 1.00 0.08 : 1.00 0.07 : 1.00
Total Liabilities 80,082 191,702 205,783 215,375 230,939
÷ Total Partner's Equity 1,429,785 1,866,077 2,349,985 2,857,932 3,418,670
Debt to Asset Ratio 0.05 : 1.00 0.09 : 1.00 0.08 : 1.00 0.07 : 1.00 0.06 : 1.00
Total Liabilities 80,082 191,702 205,783 215,375 230,939
÷ Total Assets 1,509,867 2,057,779 2,555,768 3,073,307 3,649,610
84
i. Break-even Analysis
GWM Corp.
Break-even Analysis (BEP in Units)
(Amounts in Philippine Peso)
For the year 2022
GoWine
Sales Price 199.00
LESS: Variable Costs
Direct Labor 32.75
Direct Materials 55.00
VAT 23.88
Fixed Costs
Operational Overhead 177,500.00
General & Administrative 1,005,233.18
Total Fixed Costs 1,182,733.18
÷ Contribution Margin 87.37
BEP in Units 13,537.33
GWM Corp.
Break-even Analysis (Income Statement)
(Amounts in Philippine Peso)
For the year 2022
Net Income 59
85
GWM Corp.
Break-even Analysis (BEP in Units)
(Amounts in Philippine Peso)
For the year 2023
GoWine
Sales Price 199.00
LESS: Variable Costs
Direct Labor 32.24
Direct Materials 56.65
VAT 23.88
Fixed Costs
Operational Overhead 181,000.00
General & Administrative 1,700,553.02
Total Fixed Costs 1,881,553.02
÷ Contribution Margin 86.23
BEP in Units 21,819.38
GWM Corp.
Break-even Analysis (Income Statement)
(Amounts in Philippine Peso)
For the year 2023
Net Income 54
86
GWM Corp.
Break-even Analysis (BEP in Units)
(Amounts in Philippine Peso)
For the year 2024
GoWine
Sales Price 199.00
LESS: Variable Costs
Direct Labor 33.86
Direct Materials 58.35
VAT 23.88
Fixed Costs
Operational Overhead 184,570.00
General & Administrative 1,778,383.26
Total Fixed Costs 1,962,953.26
÷ Contribution Margin 82.91
BEP in Units 23,675.97
GWM Corp.
Break-even Analysis (Income Statement)
(Amounts in Philippine Peso)
For the year 2021
Net Income 3
87
GWM Corp.
Break-even Analysis (BEP in Units)
(Amounts in Philippine Peso)
For the year 2025
GoWine
Sales Price 199.00
LESS: Variable Costs
Direct Labor 36.00
Direct Materials 60.10
VAT 23.88
Fixed Costs
Operational Overhead 188,211.40
General & Administrative 1,859,182.86
Total Fixed Costs 2,047,394.26
÷ Contribution Margin 79.02
BEP in Units 25,910.89
GWM Corp.
Break-even Analysis (Income Statement)
(Amounts in Philippine Peso)
For the year 2021
Net Income 9
88
GWM Corp.
Break-even Analysis (BEP in Units)
(Amounts in Philippine Peso)
For the year 2026
GoWine
Sales Price 199.00
LESS: Variable Costs
Direct Labor 37.79
Direct Materials 61.90
VAT 23.88
Fixed Costs
Operational Overhead 191,925.63
General & Administrative 1,945,938.85
Total Fixed Costs 2,137,864.48
÷ Contribution Margin 75.43
BEP in Units 28,344.22
GWM Corp.
Break-even Analysis (Income Statement)
(Amounts in Philippine Peso)
For the year 2021
Net Income 59
89
j. Average Annual Return on Investment, Payback Period, and Net Present Value
GWM Corp.
Average Annual Return on Investment
GWM Corp.
Payback Period
The payback period will be reached on the 3rd year, 3rd month, and 24th day since its first day of operations.
GWM Corp.
Net Present Value - with a discount rate from a
T-bill of 1.36% (current rate from BSP)
The NPV of the 5 year project is ₱2,056,404 while the IRR is 54.17%.
90
Chapter 8
Risk Assessment
A. Success Factors
Since the company has partnered with Novellino, more consumers would be induced to buy
since the brand has already proven its quality throughout the years.
The increase of the demand for single-serve packaging will cater more profitability for GWPS
Corp., as it will establish the existence of the franchise for the product, its unique market allows
the GoWines brand to take advantage of this as the first to offer a single-serve product locally.
The success of the GoWines brand is determined as the product and services offered at its
highest quality. Since the fruit wines are made from the provinces, it is rest assured that the
fruits used are fresh from the farm. Likewise its growing conditions, time of harvest and
91
d. Rise of Environmental Movement
The GoWines brand will provide an eco-friendly single-serve product. The manufacturers can
also be persuaded to use products that are eco-friendly thus, promoting environmental
B. Risk Factors
Currently, there is no popular eco-friendly single-serve product made from bamboo fiber-that
looks and real glassware. Being the pioneer in this market creates a possibility that hesitant
customers will not appreciate the outcome. Also, consumers might prefer buying in a bottle
since the volume is greater rather than buying wine by the glass.
C. Recommendation
Based on the findings and conclusions presented, the following recommendations are
suggested:
• The proponents recommend that once the brand GoWines is established and
succeeded, it should partner up with more renowned brands as this is a great opportunity for
the company to grow. The product will be competitive on a global scale once established
• The proponents suggest that the range of products should be expanded thus partnering
up with other liquor and beverages dealers is ideal for the future. Expanding the range of
92
• The proponents recommend having more investments in the future. The Cash account
in the later years will be higher, it is ideal to use the cash as an investment to put the money
into work and potentially increase wealth. This may allow the cash to outpace inflation and
increase in value. Also, the proponents may opt to sell more Ordinary Stocks, add Preferred
• The proponents suggest that a website for the company product is needed. It is highly
recommended, nowadays online marketing is a must, so creating a website for the product will
advertise the product as well as using social media functions. It will also serve as a customer
feedback website where the company will know what the customers want and what’s there to
improve.
93