Quezon City Polytechnic University

Bachelor of Science in Entrepreneurship

San Bartolome Campus

1.0 Executive Summary

1.1 Name of the Business

The proponents named the business Capirazzo. The name was derived from
the word “Cap” since the primary nature of the business is to manufacture
caps. Then, the word pirazzo (from piraso), meaning fragment or bit, is then
attached to the word cap to imply that certain part of the cap can be changed.

1.2 Mission and Vision

1.2.1 Core purpose
The core purpose of the company is to craft things creatively providing
distinctive cap to customers.

1.2.2 Core values

The company will accomplish its mission and fulfill its vision through its
core values- HEART, because we believe that if we give our heart to what
we are doing, we can do beyond our capacity.

Humility- an attitude of being modest in serving our customers.

Enthusiasm- being passionate in achieving its mission and fulfilling its

vision.

Appreciativeness- being grateful for the effort of the team member as well
with the customers for their feedback.

Readiness- being prepared in everything that we do.

Trustworthiness- dependable and fit to be trusted by the customers.

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

1.2.3 Mission
To operate the business in its best performance by serving its customers
with innovative dual purpose cap which can be changed to a sling bag or
small varsity bag.

1.2.4 Vision
Capirazzo envisions itself as an established, profitable and sustainable
convertible cap producer providing satisfaction to people who consider
cap a part of their clothing lifestyle.

1.3 Location of head office and store

The Capirazzo located its office at Lot 9F Interior Evangelista Street, San
Bartolome and the stall (outlet) is located at the Novaliches Plaza, Barangay
Novaliches Proper, both at Novaliches, Quezon City. The planners consider
putting up a stall in order to showcase the product to the target market. The
office domicile will also serve as the production area.

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

1.4 The product

Comparison of the product with its competitors

Capirazzo Competitors
Quality The product is made The product is usually made from
from Heavy twill (a Japanese twill fabric or maong.
quality fabric).

Design The product is plain, yet The product has variety of design.
design can also be
customized.
Specification Can be turned into a bag It is merely a cap.
(sling bag or varsity bag).

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

1.5 The customers

The main customers are the male youths/adults age 15-29 residing at
Barangay Novaliches Proper and Barangay San Agustin, Novaliches, Quezon
City. The main mean to reach the target customers is through personal
marketing, but the group will also put up an outlet at the Novaliches Plaza in
order to showcase the product. As for expansion, the company will produce
cap that suits to female as target market.

1.6 Management team

Name Position
Erwin D. Bagual General Manager
Gerald G. Gallego Production Head
Ma. Honey Joy S. Oblepias Marketing Head
Grace C. Caiña Finance Head
JermyErliana G. Singque Production Staff
John Patrick B. Borrico Production Staff
Charmane B. Jalotjot Production Staff
AiraM. Biglang-Awa Marketing Staff
Mareidhel A. Solima Marketing Staff
Maria Lourdes B. Samonte Marketing Staff

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

1.7 Financial Highlights

2014 2015 2016 2017 2018

Sales P102,823.62 P205,647.24 P216,942.62 P222,192.63 P234,396.78
Cost of
Goods
Manufactured P35,181.04 P70,362.08 P72,412.94 P72,412.94 P74,525.33
Expenses P34,818.00 P69,636.00 P71,635.08 P71,635.08 P73,694.13

Gross Profit P67,642.58 P135,285.16 P144,529.68 P149,779.69 P159,871.45

Net Profit P32,824.58 P65,649.16 P72,894.60 P78,144.61 P86,177.32

Cost of Goods Manufactured

Php250,000.00

Php200,000.00

Php150,000.00

Php100,000.00

Php50,000.00

Php-
2014 2015 2016 2017 2018

Sales Cost of Goods Manufactured Expenses Gross Profit Net Profit

Note: The chart shows that sales, cost of goods manufactured, expenses,
gross profit and net income are increasing every year.

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

2014 2015 2016 2017 2018

Cash
Inflows P132,823.62 P205,647.24 P216,942.62 P222,192.63 P234,396.78
Cash
Outflows
P78,999.04 P147,998.08 P152,048.02 P152,048.02 P156,219.46
Cash
End P53,824.58 P111,473.74 P176,368.34 P246,512.95 P324,690.27

Note: The chart shows that cash inflows, cash outflows, and cash ending
balances are increasing every year.

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

2014 2015 2016 2017 2018

Assets P62,824.58 P118,473.74 P181,368.34 P249,512.95 P325,690.27

Liabilities P0.00 P0.00 P0.00 P0.00 P0.00
Partners’
Equity P62,824.58 P118,473.74 P181,368.34 P249,512.95 P325,690.27

Note: The chart shows that the assets, liabilities and partner’s equity are
increasing every year.

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

1.8 Corporate Social Responsibility

1.8.1 Economic
Since Capirazzo cap is new in the market, it may set a new trend that cap
should not be cap alone but instead it must be innovative. With its impact,
people who has capital may invest in the production of this kind of cap
thereby heightening the competition in the market. This will lead to higher
economic activity. As the business expands, it will be able to provide jobs
to people.

1.8.2 Social
The product will help people save money because they will be able to
have 3 products at the price of 1. Correspondingly, the demand for
innovative products/services will increase as people will look for best
products/services for the money that they have.

1.8.3 Environment
The company will support conservation of the environment through proper
waste disposal. The scrap fabrics from the production of convertible cap
will be recycled and be used to make rags and pot holders. Moreover, the
company will confer messages in the packaging of the product persuading
people to help conserve the environment.

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

2.0 Company Summary

2.1 Company Description

The partners decided to form a Cap Manufacturing business named

Capirazzo. The business will offer quality and innovative cap made with
convertible features. The cap can be converted to sling bag or varsity bag.
Capirazzo located its office and production area at Lot 9F Interior
Evangelista St. San Bartolome and will put up an outlet at the SB Plaza,
Brgy. Novaliches Proper to showcase the product to customers, both at
Quezon City.

Capirazzo will operate as general partnership and requires Php 30,000.00

worth of initial Capital. The capital will come from the general partners and
the highest capital contributor will be the general manager. The general
manager will be spearheading the entire operation of the business yet
other partners will also participate in the operation of the business by
serving in different positions.

2.2 Company ownership/legal form

The business will operate as a general partnership. All partners are
general partners, thus they are liable up to the extent of their personal
property in case of loss. Each has the right to participate in the
management of the business.

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

2.2.1 Articles of Partnership

ARTICLES OF PARTNERSHIP
OF
Capirazzo Co.

KNOW ALL MEN BY THESE PRESENTS:

That, we the undersigned, all the legal age and residents of the Republic of the
Philippines have agreed to amend a general partnership under the terms and
conditions herein after set forth and subject to the provisions of existing laws of
the Republic of the Philippines.

AND WE HEREBY CERTIFY:

ARTICLE I
That the name of the partnership shall be Capirazzo

ARTICLE II
That the principal office of the partnership shall be locatedat Lot 9F Interior
Evangelista St., San Bartolome, Novaliches, Quezon City.

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

ARTICLE III
That the names, citizenship and residence of the partners of the said partnership
are as follows:

Name Residence Citizenship

Lot 9F Interior Evangelista
Erwin D. Bagual St. San Bartolome, Filipino
Novaliches, Quezon City
Lot 1 Block 23 Catleya St.,
Maligaya Park Subdivision,
Gerald G. Gallego Brgy. Pasong Putik Proper,
Filipino
Novaliches, Quezon City.
Lot 2000 Rainbow Homes I
Ma. Honey Joy S.
San Bartolome, Filipino
Oblepias
Novaliches, Quezon City
14 MT St., Leland Drive,
Marie Grace C. Caiña Filipino
Balonbato, Quezon City
JermyErliana G. 107 Balingasa St.
Filipino
Singque Balintawak Quezon City
E-32 Abbey Road, Brgy.
John Patrick B. Borrico Filipino
Bagbag, Nova., Q.C.
Blk.2 Lot 4 #15 Chalefto St.
Charmane B. Jalotjot Filipino
Novaliches, Quezon City
#07 Riverside Cariñosa St.
Aira M. Biglang-Awa Filipino
Villa Verde Homes, Subd.
#164 Ilang-Ilangst.Brgy.
Mareidhel A. Solima Filipino
Payatas A, Quezon City
#004 A Samonte Rd., Brgy.
Maria Lourdes B.
NagkaisangNayon, Filipino
Samonte
Novaliches, Quezon City

ARTICLE IV
That the term for which said partnership is to exist is five (5) years from the
original recording of the said partnership by the Security and Exchange
Commission.

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

ARTICLE V
That the purposes of the said partnership are formed are as follows:
➢ To gain profit.
➢ To implement and expand the business idea.
➢ To manufacture and sell convertible cap.

ARTICLE VI
That the capital of the partnership shall be Php 30, 000.00, Philippine currencies
contributed in cash by the partners are as follows:

Name Amount Contributed

Erwin D. Bagual Php 4,500
Aira M. Biglang-Awa 2,250
John Patrick B. Borrico 2,250
Marie Grace C. Caiña 4,000
Gerald G. Gallego 2,250
Charmane B. Jalotjot 2,250
Ma. Honey Joy S. Oblepias 4,000
Maria Lourdes B. Samonte 2,250
Jermy Erliana G. Singque 4,000
Mareidhel A. Solima 2,250
Total Php 30,000

That no transfer shall reduce the ownership of the Filipino residence to less than
the required percentage of capital shall be recorded in the proper books of the
partnership.

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

ARTICLE VII
That the profits and losses shall be divided pro- rata among the partners;

ARTICLE VIII
That the firm shall be under the management of Erwin D. Bagual as General
Manager and as such he shall have charged of the management of the affairs of
the partnership.

Ma. Honey Joy S. Oblepias will serve as the Marketing Head and in charge for
the marketing and sales of the product. Jermy Erliana G. Singque will serve as
the Production Head and in charge for the overall production of the product as
well as maintenance of the machineries. Marie Grace C. Caiña will serve as
Finance Head and is responsible for the finances, budget allocation, and
preparation and presentation of financial statements of the partnership. Aira M.
Biglang-Awa, Mareidhel A. Solima and Maria Lourdes B. Samonte will serve as
Marketing staff and will help in promotion and distribution of the product. John
Patrick B. Borrico, Gerald G. Gallego, Maria Lourdes B. Samonte and Charmane
B. Jalotjot will serve as Production Staff and will help in the production of the
product as well as the proper waste disposal.

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

In WITNESS WHEREOF, we have hereunto set our hands, this ____(day) at the
City of Quezon, Philippines.

Signature of Partners

_____________________ ___________________ _________________

Erwin D. Bagual Aira M. Biglang-Awa Marie Grace C. Caiña

_____________________ ___________________ _________________

John Patrick B. Borrico Gerald G. Gallego Charmane B. Jalotjot

_____________________ ___________________ _________________

Ma. Honey Joy S. Oblepias Maria Lourdes B. Samonte Mareidhel A. Solima

______________________
JermyErliana G. Singque

Signed in the presence:

___________________ ___________________
Witness Witness- Notary Public

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

2.3 Start-up Requirements

Requirements Provisions Capital Borrowings

Equipments
Sewing Machine 10,000.00 5 years
Supplies
Needle Bars 50.00 1 month
Ballpen 20.00 1 month
Receipts 50.00 1 month
Paper Bags 80.00 1 month
Log Book 60.00 1 month
Journal 50.00 1 month
Miscellaneous
Garbage Bag 50.00 2 months
Broom 40.00 2 months
Dust pan 40.00 2 months
Materials
Heavy Twill Fabric 2,030.00 1 month
Acetate 512.00 1 month
Zipper (Jacket) 960.00 1 month
Zipper (ordinary) 128.00 1 month
Buckles 320.00 1 month
Strap 411.84 1 month
Thread-White 25.00 1 month
Thread-Colored 30.00 1 month

Labor 4,680.00 2 months

Rent 9,000.00 2 months
Electricity 720.00 1 month
Communication 400.00 1 month
Transportation 1,280.00 1 month
Allowance 3,600.00 1 month
Legal Fee 1,750.00 6 months
Freebies 480.00 1 month
Advertisement 250.00 1 month
Cash/Contingency 3,295.50
Total Php30,000.00 Php30,000.00 Php0.00

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

2.4 Company/Store Location

2.4.1 Location
Capirazzo located its officeand production area at Lot 9F Interior
Evangelista Street, San Bartolome and the stall (outlet) is located at the
Novaliches Plaza, Barangay Novaliches Proper, both at Novaliches,
Quezon City.
2.4.2 Office Lay-out

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

2.4.3 Barangay map

Barangay Novaliches Proper

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

2.4.4 Location map

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

2.5 SWOT Analysis

(5) Five STRENGTH WEAKNESS OPPORTUNITY THREATS
Functions of
Management
Management Capirazzo’s As the Expanded The
Aspect had definite organization area where competitors
core purpose grows, it is can showcase can spread
considering more difficult the product. rumors and
coordination to pinpoint also the
and integration the negative
towards accountability feedback of
attainment of and judge customer(s)
company goals performance. can affect the
as well as core management.
values to
ensure
effectiveness in
attaining such
mission and
vision.
Marketing Capirazzo’s It is Because of The demand
Aspect objectives is to surrounded trend for the
increase profit by many promotional product
and market competitors. measures, maybe
share by using good relatively low
trend relationship to since it is a
promotional customers and new entrant.
strategy such innovative
as leaflets, product it can
tarpaulin, set new trend.
freebies,
model(s), Based on
online and demand and
social media. competitors
analysis they
Good are 3,243.41
relationship to unfilled gaps
the customer to more than on
the customer. competitors
supplied in
market.

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

Production Capirazzo’s Capirazzo is Expansion by If Capirazzo’s

Aspect tend to focus lack of high- creating new outsourcing
on producing tech style of bag manpower
desired amount machineries attached in the there’s a
of cap that can cap that will possibility to
demanded at make more cater female delay
specific area by caps as its market. production
routing, because of and prone to
scheduling and limited imitation.
dispatching capital.
process for a
good
production
flow.

The
Capirazzo’s
production area
is near to stall/
displaying
area.
Financial Capirazzo’s The planners They are a lot High inflate
Aspect provide a good are all financial rate leads to
decision in students that intuitions that high cost of
controlling do not have can help the product.
assets such the capacity financial
funds in terms to finance the aspect.
of depositing things
capital needed.
contribution in
the family bank
to secure at the
same time it
earn interest.

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

Product Uniqueness of Slightly bulky

Eye catcher, It is prone to
the product, because it is imitation.
one cap that The cap has new to the
can be turned only one market. High inflate
into a bag and style. rate leads to
visor at the It can set new high cost of
same time. There is a trend. the product.
tendency that
Less cost, you the customer Expansion by The demand
can have three can ask for creating new for the
products at the the lesser style of bag product
price of one. cost. attached in the maybe
cap that will relatively low
cater female since it is new
as its market. to the market.

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

3.0 Product/Service
3.1 Product Description

Capirazzo cap is a convertible cap where the top can be removed and be
changed into bag, and its peak together with the panel can also be used as a
visor at the same time. The top is the part of the cap where usually covers our
head, and the peak is the part where the sandwich (acetate) is covered. The
visor and bag is combined together by means of zippers. This is designed for
dual-purpose use and fashion. It allows one to change their cap into bag
which comes either in a sling bag or varsity bag in less than a minute by
simply unzipping the removable top of the cap and reverse it and you will
have your bag already. Buckles or magic tape can also be attached to the cap
in order for it to fit to any size of the head of the user.

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

3.2 Product Strategy Alternatives

The product is a modified (improved) product for one market.

- As for this time, the product can only be sold to male youths/adults
ages 15-29. This is so because the style of bag attached to the cap is
appropriate for male only. However, expansion wise, the planners will
develop new style of bag attached to the cap that will suit to female
youth/adults in the future.

• Product attributes
The cap is made from heavy twill, a good quality fabric. The color of
the fabric does not easily fade. The cap is convertible to sling bag or
varsity bag.
• Packaging
When the top part is detached from the cap, it can be used as a bag.
The cap now can be used as a visor. The bag will serve as packaging
for the visor. The planners will also use loot bags designed with printed
messages that encourages customers to conserve the environment.

• Labelling
The planners will attach a sticker containing the information about the
product and how to use it.

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

3.3 Competitive Advantage, Opportunities and Threats

Competitive Advantage:
• The product is made from durable and quality fabric.
• The product is innovative
• The product can be turned into a sling bag or varsity bag.
• The customers can have 3 products at the price 1.

Opportunities:
• The product is attractive since it is innovative and new in the market.
• It can set new trend in the market.
• It has the opportunity for expansion. By creating new styles of bag
attached to the cap, it can cater female as its market

Threats:
• The product is prone to imitation by the competitors.
• The demand for the product may be relatively low since it is new in the
market.
• High inflation rate leads to high cost of the product.

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

3.4 Manufacturing Process

3.4.1 Production Process

Steps Process
Preparing the measured materials
1 needed such as fabric layer, pilon and
acetate.

2 Cut the materials needed based on

specific dimension.
(See pages 25-28 for the dimension of
the cap).

3 Assemble the cap, varsity bag and the

sling bag.

4 Start stitching the cap as well as the

varsity bag and sling bag.

5 The edges of the starting and ending

sweat band are overlapped evenly and
sewn together.

6 Attach the buttons and zippers.

7 Trimming the excess threads, cleans

up and final detailing.

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

Dimension of the product

Visor

Cap base (sweat band)

23” length
2” width

Cap body
23” length
2 ½” width

Cap panel
7” length
3” width

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

Cap (Top)

Cap top
Circumference 7”

Zipper size
#3
Pick body
23” length
3” width

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

Varsity bag

Handle
46”

Inner zipper
16 ½” Bag body
Extension 10 ½” length
6 ½” 22” width

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

Sling bag

Handle
46”

Zipper siding
A. 7” length
2” width
B. 7” length
2” width

Base siding
13 ½”

Boby bag
17” length
14” width

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

3.4.2 Production Flow Chart

Start A

Trimming the excess

threads, clean up and final
Prepare the fabric detailing.
layer, canvas, pilon
and acetate.
The cap is ready for
display.
Cut the materials based on
each specific dimension.
End

Assembling the cap, varsity

bag and sling bag.

Start stitching the cap as Legend:

well as the varsity bag and
sling bag. -Denotes the beginning or
end of the process flow.
-Denotes the direction of logic
Edges of sweat band are flow in a program.
overlapped evenly and
sewn together. -Denotes a process to be
carried out.

Attach the buttons and -Denotes either an input

zippers.
operation or an output.

-Denotes the connector of the

A
process.

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

3.4.3 Waste disposal

The scrap fabrics from the production of cap will be collected and be used
to make rags and pot holders. Moreover, the company will put up garbage
bags in the office and stall for proper waste disposal. The garbage will be
disposed during weekly routine collection done by the garbage collectors.

3.4.4 Future products

The company would want to expand its market by reaching female
youth/adults. This can become possible by creating new style of bag
attached to the cap that suits female preference.

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

4.0 Market Analysis Summary

4.1 Market Segmentation

4.1.1 Current Market Situation

Use of caps in the market is relatively high among male youths and young
adults because of the fashion statement it creates. Users think that the
cap they are wearing is their crown and make them look cool. Though
users also consider the price of the cap they are wearing. In addition, men
are also fascinated in buying sling bags. This is because men usually want
to use small bags only. It is based on the observation of the planners and
based on the answers of the respondents when the planners conducted a
survey. (See page 28 in the Appendices)

4.1.2 Segmentation data/factors

The planners segmented the potential buyer based on the following

factors:
Gender- the main customers are the male youths/adults.
Age- the main customers are the ages 15 – 29
Location- the main customers are residing at Barangay Novaliches Proper
and Barangay San Agustin, Quezon City.
Lifestyle/Interest- during the feasibility study, the proponents determined
the top 3 style of cap most liked by the target market. The top 2 are the
net cap and close cap, respectively. Visor is the third among others.

• Total population of Brgy. Novaliches Proper – 16, 392

• Total population of Brgy. San Agustin- 23, 422
• Target age brackets – 15-29 (Male youths/adults)
• Total population of male ages 15-29 (Brgy. Novaliches Proper and
San Agustin– 8,972
*See pages 31-40 of the Appendices

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

4.1.3 Market Segmentation Strategy

The business used the single segmentation strategy. The planners

recognizes different distinct market segments, but chose to concentrate on
going through only one segment which is focused on male youths/adults
ages 15-29 residing at Brgy. Novaliches Proper and Brgy. San Agustin.

4.1.4 Target Market Segment

The planners segmented their market according to location, gender, age

and lifestyle/interest.

4.2 Market Analysis

4.2.1 Demand Analysis per year

Demand Analysis
Percentage
to total
population
Estimated
who Total Potential Total
Age Buying
answered Population Market Demand
Frequency
yes (they
are willing to
buy a cap)

15-19 12.16% 2,220.277858 1 2,220.278

20-24 11.24% 18258 2,051.484805 1 2,051.485
25-29 10.52% 1,921.643994 1 1,921.644
6,193.407

*The potential market and estimated buying frequency are based from the
survey that the planner conducted. See pages 25-26 in the Appendices.

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

4.2.2 Supply Analysis per year

Supply Analysis

Competitors Total

Palos 900

Contessa Boutique 1 360

Contessa Boutique 2 300

Fashion Galore 180

Jennels Fashion 251

JK Fashion Gallery 219

Stall II (inside Nova Mall) 150

Stall II (beside Nova Mall) 210

Stall III (Shop ‘n Ride) 140

Stall IV (Shop 'n Ride) 120

Stall V (Shop 'n Ride) 120

Total 2950

*The data was based on the interview with the stall owners.

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

4.2.3 Demand-Supply Gap

Demand-Supply Gap
15-29 years old
Demand 6,193
Supply 2,950

Demand Supply Gap 3,243

Target Market

Target Market Analysis

Demand-Supply Gap
3,243
Target Market Percentage 23.68%
Projected Sales for one year 768
Projected Sales for six
384
months

*The target market percentage is based on the capacity of the planners to

produce caps as a new entrant in the market. See Schedule 1 and Schedule
2 pages 40 and 41.

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

4.2.4Sales Forecast Summary

Cap (with Varsity Bag)

Schedule 1: Projected Sales

( 5 years)
Year Total
1 (6 months) PHP 41,331.00

2 PHP 82,662.00

3 PHP 87,202.29

4 PHP 89,312.59

5 PHP 94,218.17

Note: See page 40.

Cap (with Sling Bag)

Schedule 2: Projected Sales ( 5 years)

Year Total

1 (6 months) PHP 61,492.62

2 PHP 122,985.24

3 PHP 129,740.33

4 PHP 132,880.04

5 PHP 140,178.61

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

Note: See page 41

4.2.4 Market Share

Current Market Share

Palos
Contessa Boutique 1
15% 6%
Contessa Boutique 2
5%
52% Fashion Galore
3%
Jennels Fashion
4%
JK Fashion Gallery
4%
Stall II (inside Nova Mall)
3% 2%
2% 2% Stall II (beside Nova Mall)
2%
Stall III (Shop ‘n Ride)

The graph shows the current market sharing of the competitors as existing
suppliers of caps in the market. The 52% or 3,243 represents the unfilled gap.

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

4.2.5 New Market Share

New Market Share

15% 6%
40% 5%
3%

12% 4%
4%
2%
3%
2% 2% 2%

Palos Contessa Boutique 1 Contessa Boutique 2

Fashion Galore Jennels Fashion JK Fashion Gallery
Stall II (inside Nova Mall) Stall II (beside Nova Mall) Stall III (Shop ‘n Ride)
Stall IV (Shop 'n Ride) Stall V (Shop 'n Ride) Capirazzo
Unfilled Gaps

Upon the entrance of the Capirazzo in the market, the previously unfilled
gaps will be supplied by the proponents. However, only 12% of the unfilled
gaps will be satisfied and the remaining 40% will still remain underserved
demands. This shows that the proposed business has a good potential in
the market and there will also be a possibility for expansion.

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

5.0 Marketing/Sales Strategy Summary

5.1 Customer value proposition

Capirazzo Company is committed in providing innovative cap which is dual-

purpose, fashionable and a quality yet affordable product. The product is
intended in giving satisfaction to customers who consider cap part of their
clothing lifestyle. The company will also give freebies in order to attract
buyers.

5.2 Competitive Edge

5.2.1 Cost Leadership Strategy

The product is cost-efficient because the customers will be able to have 3
products at the price of 1. This means that the product is more affordable
compared to competitors.

5.3 Marketing/Sales program

5.3.1 Product Quality
The raw materials that will be used to make the cap guaranteed made of
durable and long lasting materials. Every product will be made special and
unique in style that provides the customer a cap that has a high quality.
The product is made unique because it is convertible into sling bag or
varsity bag.

5.3.2 Place or Distribution Strategy

The Capirazzo will put up an outlet (stall) in the SB Plaza, Brgy.
Novaliches Proper, Novaliches in order to showcase the product to the
target market. The product will also be marketed through direct selling to
have a direct contact and to build good relationship with the customers.

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

5.3.3 Promotion Strategy

The company will include different promotional strategy to showcase the
product, to get some suggestion to the users and to increase demand and
to differentiate the product.

• Advertising – promotion for a large group of people.

➢ Tarpaulins
➢ Flyers
• Sales Promotion – price/money related communications.
➢ Freebies (e.g. Wallets)
• Direct marketing – one on one communication with potential
buyer.
➢ Catalogues
• Digital marketing
➢ Website
➢ Social media applications such as Facebook or Twitter
➢ YouTube (e.g. visual presentation; commercial

5.3.4 Pricing Strategy

The group used the “Cost-Plus Method” in determining the selling price.
The group computes all the product costs and adds reasonable mark-up.
The price of the product is said to be highly competitive because the
customers can have 3 products at the price of 1. (See pages 29-30 in the
Appendices).

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

5.4 Sales Forecast

Cap (with varsity bag)

Table 1: Projected Sales (per month)

Projected Sales (units) 23

Selling Price 299.50
Sales PHP 6,888.50

Schedule 1: Projected Sales ( 5 years)

Year Units Price Total
1 (6
months) 138 PHP 299.50 PHP 41,331.00

2 276 PHP 299.50 PHP 82,662.00

3 283 PHP 308.49 PHP 87,202.29

4 290 PHP 308.49 PHP 89,312.59

5 297 PHP 317.74 PHP 94,218.17

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

Cap (with sling bag)

Table 1: Projected Sales (per month)

Projected Sales (units) 41

Selling Price 249.97
Sales PHP 10,248.77

Schedule 1: Projected Sales ( 5 years)

Year Units Price Total
1 (6 months) 246 PHP 249.97 PHP 61,492.62

2 492 PHP 249.97 PHP 122,985.24

3 504 PHP 257.47 PHP 129,740.33

4 516 PHP 257.47 PHP 132,880.04

5 529 PHP 265.19 PHP 140,178.61

Assumptions:

1. Sales in units will increase by 2.42% per annum (based on Quezon City
population’s growth rate). See page 31 in the Appendices.
2. Selling price per unit will increase by 3% every year based on inflation
rate. See pages 41-42 in the Appendices.

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

5.5 Gantt Chart

Weeks
Activity 1 2 3 4 5 6 7 8 9 10 11 12
1 Preparing business plan.
2 Survey.
3 Put up capital.
Purchasing materials for the
4 product.
5 Improvement of the product.
6 Register with the government.
7 Stall reconstruction.
8 Start of the business

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

6.2 Duties and responsibilities of the management team

General Manager

➢ Will spearhead the over-all operation of the business.

➢ Responsible for the strategic planning of the organization.
➢ Outlines the direction of the business venture.
➢ Leads the team towards achieving goals.
➢ Think of ways to ensure the profitability of the business.
➢ Leads the team for the documentation of the business.
➢ Will foster good relationships with the customers.

Production Head

➢ Will spearhead the operation of the production team.

➢ Will check the performance of the workers and make sure that the
desired number of output will be met.
➢ Keep track of the records of the production team.
➢ Make wise decisions for the production operation.
➢ Responsible for the coordination and management of operations.
➢ Monitor the purchasing of raw materials.
➢ Check and ensure the good quality of the products produced.
➢ Directs the production team towards achieving desired output
requirements.
➢ Improves manpower utilization.

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

Finance Head

➢ Responsible for the safekeeping of the financial records.

➢ Maintain cash controls.
➢ Execute financial policies for the business.
➢ Prepare financial statements
➢ Perform closely with the General Manager and Production Head in
planning for the profitability of the business.
➢ Decides wisely for the selling price of the products.

Marketing Head

➢ Plan and execute promotional measures and marketing strategies to

attain defined goals.
➢ Contribute to the organization’s success by executing plans to increase
sales and market share.
➢ Prepare diverse promotional plan to encourage customers to buy the
products.
➢ Leads the team for the business to cope with the market trends.
➢ Maintain good relationships with the customers.

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 Quezon City Polytechnic University
Bachelor of Science in Entrepreneurship
San Bartolome Campus

Production Staff

➢ Assists the head for the production operation.

➢ Will work with the laborers in the production of caps.
➢ Responsible for the purchasing of raw materials needed in the
production.
➢ Continuously seek suppliers of good quality yet affordable raw materials.
➢ Work collaboratively with the team members in order to produce the
desired output.

Marketing Staff

➢ Main role is to promote the product intensively.

➢ Maintain good communication with the head to execute promotional
plans.
➢ Helps the head in studying the market situations for proper forecast.

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