Lesson 9.1: BRAND NAME Lesson 9.

2: PRODUCT LIFE CYCLE

BRAND NAME PRODUCT LIFE CYCLE
- it refers to the name, design, color, symbol, quality, - length of time from when a product is introduced to
features, or a combination of these elements that consumers into the market until it's removed from the
make the product separate and distinct from similar shelves.
products of the competitors. ❖Introduction Stage
- Product/Service needs to be explained
FOUR BRANDING STRATEGIES - there is often little to no competition for a product, as
1. Umbrella brand approach competitors may just be getting a first look at the new
- all products of the business carry the same brand offering.
name. (e.g., Honda Civic, Honda Accord, Honda BR- ❖Growth Stage
V) - Product/Service needs to be differentiated.
2. House brand approach - characterized by growing demand, an increase in
- every product of the same business has a separate production, and expansion in its availability.
brand name that distinguishes it from the rest of the - the product becomes more popular and
company’s products. (e.g., Procter & Gamble Co. – recognizable.
Tide, Ariel, Pampers, Downy) - marketing campaigns
3. Line extension approach - financially results in increased sales and higher
- the existing product has been modified or altered revenue.
resulting in a new product. (e.g., Bear brand Fortified, ❖Maturity Stage
Sterilized, Adult Plus) - Product/Service needs to be innovated.
4. Product extension approach - Most profitable stage, is the time when the costs of
- new product carries the brand name in a new producing and marketing decline.
category (e.g., Samsung TV, Samsung Refrigerator, - competition is now higher and the profit
Samsung washing machine) margin shrinks.
❖Decline Stage
CHARACTERISTICS OF GOOD BRAND NAME - Product or service needs to be retired/revamped.
1. unique/distinctive (Kodak) - product may lose market share and begin its decline.
2. easy to pronounce, identify, and memorize. (Tide) - sales begin to drop due to market saturation and
3. give an idea about the product’s qualities and alternative products.
benefits (Safeguard).
4. easily convertible into foreign languages. Lesson 10: 4Ms of Operation
5. capable of legal protection and registration. MANPOWER, METHOD, MACHINE, MATERIALS
6. suggest a product/service category (Inquirer). First M: Manpower
7. not portray bad/wrong meanings in other categories. - first and most important
TYPES OF WORKERS
HOW TO CHOOSE A GOOD BRAND NAME - Direct Worker – primary jobs and functions directly
❖Step 1 – Choose the type of name related to production and operation
After the founder - named after the founder. - Indirect Worker – primary jobs and functions NOT
Descriptive - names work by telling you exactly what directly related to production and operation
the company does. Second M: Method
❖Step 2- What do you want your name to say? - manufacture/operate
❖Step 3 - Check if the name is available. Third M: Machine
- any equipment, tools, instruments, appliances, or
HOW TO CHOOSE A GOOD BRAND NAME devices used to make the product
❖Evocative – should elicit a positivity - converts raw material to finished product
❖Catchy Fourth M: Materials
❖Simple to spell and pronounce - needed for running your shop
❖Recognizable - supplies for providing the service
❖Fabricated TYPES OF MATERIALS
❖Invented brand names - Direct Material – related to production
❖Metaphor - Indirect Materials – not directly related to production
❖It is reflecting imagery and meaning back to the
brand. Lesson 11: SETTING UP A BUSINESS
❖Acronym – shorthand version of a descriptive name. 1. Develop a product description
❖Real word – taken out from the dictionary and 2.1. Create a prototype of the product
suggests attributes and benefits. 2.2. Test the product prototype
2.3. Validate the service description of the product ❖ Direct selling/marketing – selling products to
with potential customers to determine its market consumers directly away from middlemen. It is
acceptability also called the Brick-and-Mortar Business Model.
3. Select/pinpoint potential suppliers of raw ❖ Reselling – business makes something that is
materials and other inputs necessary for the resold by other businesses with or without
production of the product or service modifications
4. Discuss the value/supply chain concerning the ❖ Franchising – the practice of using another firm’s
business enterprise successful business model in exchange for a
Supply Chain – the process of all parties involved in royalty or franchise fee.
fulfilling a customer request 7.1. Forecast (estimate/assumption/prediction) the
Value Chain – a set of interrelated activities a business costs to be incurred of the business.
uses to create competitive advantage 7.2. Forecast (estimate/assumption/prediction) the
VALUE CHAIN IN RELATION TO THE BUSINESS revenue of the business.
ENTERPRISE 7.3. Deduct your Cost of Goods Sold/Cost of
- The idea of a value chain was pioneered by Michael Sales/Cost of Merchandise from your estimated
Porter sales and you will have your gross profit.
- Value chain gives the company the ability to create ❖ Gross Profit – the profit a business makes after
value that exceeds the cost of providing its goods and deducting all the direct costs from the sales.
services to customers. ❖ Factory overhead – costs incurred during the
❖Inbound logistics – receiving supplies/ materials, manufacturing process, not including the costs of
warehousing or safekeeping, and inventory control of direct labor and direct materials.
the items 7.4. Compute for net income.
❖Operations – value-creating processes that ❖ Net income before tax – monetary gain that you
transform inputs into products (these are the earn after deducting the cost of sales and
methods/processes of your business) operating expenses
❖Marketing and sales – activities that are related to ❖ Operating Expenses – costs related to marketing
getting a buyer or customer to purchase a expenses and administrative expenses
product/service ❖ Net income after – income after paying the taxes,
❖Outbound logistics – activities required to get a which is computed based on your net income
finished product to a customer such as transportation before tax
and delivery 8. Create a five-year projected income statement
❖Services – activities include those that maintain and
enhance a product’s value (giving customers more Lesson 13: IMPLEMENTING THE BUSINESS PLAN
than what they paid for - such as after-sales customer 1. Setting Up the Business
support) Sales
❖Supply chain comprises the flow of all activities - amount of money they want to generate from
associated with the different stages of creating and implementing their business ventures
selling a product or service. - the topline of the income statement
Supply chain functions include: - the most important part of the cash flow statement
1. Manufacturing Budgets
2. Transporting/Distribution - amount of money you are willing to spend in
3. Selling your business ventures
- set your budgets in such a way that your sales
5. Recruit qualified people for your business. exceed expenses
- List the name of the employee, the name of the Profits
position/designation, and the function/role. - amount of money a business makes after
❖ Job description - usually lists out the job title, deducting all the direct costs from the sales
location, job summary, working environment, - from these profits will come dividends, retained
duties to be performed on the job, salary, benefits, earnings and owner’s drawings
etc. Savings
❖ Job specification - lists out the qualifications, - the amount of cash set aside from the future
experience, training, skills, emotional attributes, - you can get savings from the net income
and mental capabilities of an individual to perform Location
the job. - choose a location based on your operation
6. Develop your business model. - choose a location that has high foot traffic and
❖ Bricks and clicks – integrates both offline (bricks) accessible to your target market
and online (clicks) presence. - always consider the cost of the location
Registration (DTI/SEC)
- register your chosen business name to DTI (sole customers
proprietorship) or SEC (partnership/corporation) - review your product/service for further improvement
Registration (Barangay/Mayor/BIR) introduce additional products/services as
- after registration of the business name, secure a necessary to maintain customer loyalty
barangay business permit, and Mayor’s permit - evaluate and analyze your business performance
- register your business with Bureau of Internal by doing your business report
Revenue - create action plans and recommendations on
People how you can improve the performance of your
- hire the right people business
- their skills/competencies must match your
requirements Lesson 14: REASONS FOR KEEPING BUSINESS
- ask them to submit bio data/resume, RECORDS
government clearance (NBI/police) 1. To learn from both your mistakes and success so
- schedule an interview that your business will constantly improve
- you must provide a competitive salary and 2. To monitor your performance versus your targets
compensation package following the government and provide you clues as to what you need to improve
regulation of salary and compensation on to achieve your targets
- allot your time to train them 3. Government regulations (such as taxes), require the
- your employees are assets and can help you business to keep accurate financial records
grow your business 4. Allows the entrepreneur to ask or hire assistance
Suppliers/Subcontractors from accountants to reconstruct financial statements.
- you should have identified your suppliers/ Having everything recorded makes it easier for others
subcontractors during the prototyping stage to help you.
- look for suppliers with competitive prices,
abundance of supplies and good credit terms SALES JOURNAL
- look for subcontractors that can execute your A chronological list of all the sales transactions for a
product well, sign a contract to protect business
design/exclusivity It must include the following:
2. Operating the business Date – when the sales took place
Launch the business Transaction Description – what items were sold
- create activities for opening day Amount – total amount in Pesos of the sale
- increase marketing activities or promotion in the Document Number – sales invoice or official receipt
first few weeks of operation number
- review the business plan and make sure it is Addition information can be included:
being followed Check Number – for business that accepts check
- create a simple daily operating guide based on payment
your operation plan Customer name – for business with few, but very
- follow fixed opening and closing hours loyal customers
- regularly update your inventory list to have Payment due date – for business that accepts credit
enough products to sell or services to offer sales
3. Sell the product/service - Each row in the Sales Journal is known as a Journal
- focus on selling the features, benefits, and Entry
advantage of your product/service Ideally, the sales journal can be updated once each
❖ Product/Service feature characteristics and transaction is concluded, but if there are many
❖ components of your products transactions, it can be rebuilt from documents such as
❖ Competitive advantage what makes your official receipts (for cash sales) and sales invoices (for
❖ product/service better than competitor credit sales).
❖ Product/Service benefits that the customers
- gain and value from using your product or service EXPENSE JOURNAL
- your employees should be knowledgeable about A chronological list of all the expense transactions for
your products/services a business.
- establish a friendly environment in your store Each page is broken down into columns that track vital
and have a professional relationship with your information.
customers It must include the following:
- regularly review your business plan and check Date – when the expense transaction took place
how will you implement your plans Transaction Description – what items were bought
- sustain your market by continuing to develop Amount – total amount in Pesos of the expense
your marketing activities that will attract your
Document Number – sales invoice or official receipt ❖ Cash Flow Statement – shows the current state of
number cash and the history of all cash transactions
Addition information can be included:
Check Number and Check Due Date – for business INCOME STATEMENT
that makes purchases through check payment - summarizes a business's financial performance over
Supplier name – for business with few, but very loyal a specified period, normally month, quarter, or year
suppliers - shows the summarized sales/revenues and expenses
Payment due date – for businesses that purchase on
terms ELEMENTS OF AN INCOME STATEMENT
❖ Revenues (Service Business) – a total of all the
Lesson 15.1: Bookkeeping sales that you gained from doing your primary
Bookkeeping is the systematic recording, organizing, business activity
and retrieving of all the financial transactions of a ❖ Cost of Sales (Service Business) – accumulated
business or individual in a specific format total of all the costs used to create a service. It
- Should be done on a day-to-day basis to ensure also includes Direct Labor and Sales Commissions
correct, up-to-date, and comprehensive information on ❖ Gross Profit (also known as Gross Margin, Sales
each transaction Income, Gross Income) – combined profit a
- Each transaction must be recorded regardless of how business makes after deducting the direct costs of
small the amount making or selling a product/service
- Proper bookkeeping is the building block of all ❖ Operating Expense (also known as OPEX) –
financial reporting expenses incurred in the ongoing operations of the
- A financial tool that lists all the accounts for a given business
accounting system Examples of OPEX are:
- The major types/categories of accounts are: Marketing Expenses
Assets Transportation Expenses
Liabilities Communication Expenses
Owner’s Equity Net Income (also known as Net Profit or Net Earnings)
Revenue/Income – total income of the business for a given period
Expenses Net Income = Revenues/Sales – Cost of Sales –
Financial statements Operating Expenses
- Financial statements are formal reports that tell the A positive net income is called PROFIT.
financial story of a business: both its current condition A negative net income is called LOSS.
and its history.
- These reports show the financial results of various INCOME STATEMENT
business transactions and are vital to the proper - shows the history of the business profitability
management of any business - An entrepreneur must separate his/her funds from
We can generate a wealth of information such as: business funds.
- Assess a business's financial health - Business funds must be REINVESTED into the
- Understand the causes of the business profits or business to ensure its continued operation.
losses STATEMENT OF CHANGES IN EQUITY
- Determine if it has the necessary resources to - reconciliation of the beginning and ending balances
continue operations in a company's equity during a reporting period.
- Determine if it has excess resources that can be Working Capital
shared among investors - It is the resources set aside for the day-to-day
operations of the business.
4 basic financial statements (in order of - Funds may be used to buy inventory, fund OPEX,
preparation) and finance receivables.
❖ Income Statement/Profit and Loss - It is also a buffer for unforeseen business expenses.
Statement/Statement of Comprehensive Income – ❖ Dividends are the excess business funds that are
shows the history of the business profitability distributed to the owners of the business for their
❖ Statement of Changes in Equity/Statement of personal use.
Retained Earnings - reconciliation of the beginning
and ending balances in a company's equity during BALANCE SHEET - shows the state of the business
a reporting period. assets, liabilities, and net worth of the business at
❖ Balance Sheet/Statement of Financial Position – various points in time
shows the state of the business assets, liabilities, CASH FLOW STATEMENT
and net worth of the business at various points in - It is an important tool to manage and control a
time business’ cash.
- It shows you how much cash you have (Cash ❖ Inventory - are assets that the business expects to
Balance), what sources your money comes from (Cash sell on profit. (Raw Materials Inventory, Work-in-
Inflows), and where your money goes (Cash Outflows). Process Inventory, and Finished Goods Inventory.)
❖ Long-term Assets - are the assets that the business
ELEMENTS OF A CASH FLOW STATEMENT will not be converted into cash nor consumed
❖ Beginning Cash Balance – the amount of cash within a year. (land, renovation, equipment, etc.)
owned at a particular point in time
❖ Cash Inflows – a list of all sources of cash that you LIABILITIES
received at a particular time. - are business financial debt or obligation to another
❖ Cash Outflows – a list of all the disbursements of entity usually a lender or a supplier.
cash that you released in a particular time. For trading business, the most common liabilities are:
❖ Ending Cash Balance – recorded by adding the ❖ Accounts Payable - liabilities for goods and services
Beginning Cash Balance to Cash Inflows, then that have been delivered by suppliers but have not
subtracting Cash Outflows. been paid by the company.
❖ Salaries Payable - liabilities for salaries earned by a
Lesson 15.2: BASIC RECORDING AND business’ employees but have not been paid by
IMPLEMENTATION: TRADING BUSINESS the company
Microentrepreneurs ❖ Long-term Debt - Liabilities that are payable for
- These include sari-sari store owners, public market more than a year
stall owners, street vendors, part-time direct sellers CAPITAL
and full-time sales agents. - equities refers to the value of the company that is
Trading Business owned by the investors.
- The primary cash flow in a trading business is the For trading business, the most common equities are:
purchasing of items to sell (also known as inventory) ❖ Paid-Up Capital - amount of money the investors
which is not an expense but an asset. paid to as capital for the business.
❖ Additional Paid-Up Capital - additional money in the
BUSINESS MODELS OF A TRADING BUSINESS course of business operations invested by the
❖ Buy and Sell - buy low and sell high. owners.
❖ Borrow then Sell - you may do this by arranging the ❖ Retained Earnings - total income (or loss) the
following terms with your suppliers: consignment, company has incurred since its inception less any
credit payment terms, secured by post-dated amount or dividend return to investors.
checks or PDCs BALANCING A BALANCE SHEET
❖ Sell then Buy - you may do this by arranging the Assets = Liabilities + Capital
following terms with your customers: advance - means that each transaction must be:
payment or pre-order, down payment or advance - should tell you in one page the total worth of your
payment, deposit or reservation business.
- shows you what you OWE (liabilities) and what you
STATEMENT OF ASSETS, LIABILITIES AND NET OWN (equities).
WORTH (SALN)
- financial statement that shows the financial worth of a Lesson 15.3: BASIC RECORDING AND
person. IMPLEMENTATION: MANUFACTURING
- This is a snapshot of any individual's financial value - The more you transform the product, the more
at a particular moment in time. (Assets – Liabilities = valuable the product becomes. The more VALUE you
Net Worth) create, the more people will pay for your products,
yielding GREATER PROFITS for your business.
STATEMENT OF FINANCIAL POSITION OR STEPS IN DEVELOPING A MANUFACTURING
BALANCE SHEET BUSINESS
- financial statement that shows the financial worth of a ❖ Designing a finished product (create and test a
business. prototype)
- a snapchat of business financial value at a particular ❖ Purchasing raw materials (consider at least 3
moment in time. (Assets = Liabilities + Owner’s Equity) suppliers of based on Philippine government rule)
❖ Manufacturing the products (have a process
ASSETS flowchart, refine the production process, have a
- the resources that the business owns that can documentation)
provide value in the future. ❖ Selling the products (sell the products thru: sales
For trading business, the most common assets are: agent/distributors, store of others via
❖ Cash - ready money that the business can easily online/physical store)
use (cash on hand and cash in bank)
DIRECT COST (COST OF GOODS SOLD) VS. - To be able to earn a profit, Sales must be above the
INDIRECT COST (OPERATING EXPENSES) Break-Even Point.
❖ Direct cost – directly attributable to the production of - Variable Costs are expenses that vary depending on
the product or service sales.
Raw materials - Fixed Costs are expenses that remain fixed
Direct labor regardless of the increase/decrease of sales.
Delivery costs - Revenues are created by two factors, the Selling
Sales commissions Price per piece and the Sales Quantity.
❖ Indirect cost – are normally expressed as OPEX - Sales Revenue is computed by multiplying the
Salaries Expense Selling Price per piece with the Sales Quantity.
Utilities Expense PAYBACK PERIOD
Transportation Expense - used to compute the length of time required to
Communication Expense recover the costs of the investment.
and other indirect expenses (general and
administrative expenses) Lesson 17-18: BUSINESS REPORT
TYPES OF INVENTORY BUSINESS REPORT analyzes the activities of a
Raw Materials business to produce ACTION PLANS and
Work in Process (WIP) RECOMMENDATIONS to IMPROVE BUSINESS
Finished Goods (FG) PERFORMANCE
- It will help you IDENTIFY PROBLEMS and FIND
BASIC RECORDING AND IMPLEMENTATION: SOLUTIONS that will help you with your decision
SERVICE BUSINESS making that is crucial to your business.
STEPS IN DEVELOPING A FOOD SERVICE - It is a tool that promotes the sustainability of your
BUSINESS BUSINESS.
❖ Designing a finished product (create and test a
prototype) 1. INTRODUCTION includes:
❖ Procure and set up the location Purpose of the business report
❖ Purchase raw materials Background of your business
❖ Sell the products Type of operation of your business
❖ Cook the products Information about your products or services
*Introduction should be BRIEF and CONCISE.
RECORDING A STORE OPERATION
Consider the following expenses: 2. ACTIVITIES includes:
❖ Rental Deposit – amount that the property owner Complete details of IMPORTANT activities that have
will keep to cover any damages you may incur on an IMPACT on your business performance.
their property while you are renting and may also
be used to pay unpaid bills 3. ANALYSIS OF ACTIVITIES includes:
❖ Rental Advance – amount that the property owner - the importance of the activities to the business
will ask to ensure that they paid rent before you - the activities that you will continue and discontinue
use their property and is usually consumed in the - the impact of the activities on the business
last month few months of operations in the location
❖ Store Equipment 4. RECOMMENDATIONS includes:
❖ Renovations - recommendations needed to improve the business
❖ Utilities based on analysis of activities
- action plans to address problems and challenges
Lesson 16: PROFIT OR LOSS ANALYSIS - implementation strategies of your recommended
- The Income Statement is the first financial statement activities in the future
prepared by the bookkeeper. It will reflect if the - ways to maintain the growth and success of the
business gains or loss at the end of the accounting business
period.
- A gain is called a NET INCOME. 5. APPENDICES includes:
- A loss is called a NET LOSS. - documents that will support your business report
Break-Even Analysis Financial
- used to determine at what Sales Quantity will a - pictures of products and services, and pictures while
business cover all its expenses and begin to make a operating the business
Profit. - materials used (e.g. pricelist/menu), and marketing
- break-even point = fixed cost/selling price – cost materials such as flyers, survey form, etc.
variable
CONTENT REVIEW
- make sure that all the parts of the business report are
included (introduction, activities, analysis of the
activities, recommendations, appendices)

GUIDELINES
- arrange your thoughts in a chronological manner
- focus on important activities that you want to address
- be objective
- use simple business language
- include tables, graphs, and photos
- check your grammar, spelling, and punctuation

FORMAT
Times New Roman or Arial
Size 12 (title), Size 11 (content)
1.5 spacing
include page number at the lower right page of each
page
use blank ink for text and colored text for graphs/charts
normal margin, 1 inch top, bottom and side margins
short bond paper (8.5 x 11)
BUSINESS REPORT PRESENTATION
- takes place in the daily operation of the business.
It may take place during staff meeting, client call,
investors’ meeting. It requires preparation, be it of any
form.
Basic tips on how you can prepare for your
BUSINESS REPORT presentation
- Use a visual aid
- Include important points in your presentation
GUIDELINES IN PRESENTING YOUR BUSINESS
REPORT
❖ Connect to your audience – keep them engaged
and interested to your business
❖ Use cue cards or small note that contains
explanation of your bulleted topic in the
presentation
❖ Be confident and speak well – speak loud, speak
with conviction, speak in straight fluent chosen
language
❖ Dress and look smart – wear business attire, or at
least wear a blazer on top of school uniform