A Feasibility Study of Coconut Coir Bag

as an Alternative to Single-Use Plastic Bag

in Municipality of Bantayan

A Thesis in
IE 512 – PROJECT FEASIBILITY
Presented to the
Faculty of the Industrial Engineering Department
Cebu Technological University

Daanbantayan Campus-Bantayan Extension

Manan-ao, Bantigue, Bantayan, Cebu

In Partial Fulfillment
of the Requirement for the Degree of
BACHELOR OF SCIENCE IN INDUSTRIAL ENGINEERING

Maru, Nino C.
Desucatan, Marchard B.
Quezon, Ronalyn Q.
Tibay, Mae Hazel
Villacin, Jea S.

March 2025
 APPROVAL SHEET

This undergrad thesis entitled, “A Feasibility Study of Coconut Coir Bag as an n Alternative
to Single-Use Plastic Bag in Municipality of Bantayan” prepared and submitted by Nino Maru;
Marchard Desucatan; Ronalyn Quezon; Jea Villacin; and Mae Hazel Tibay in partial fulfillment
of the requirements for the degree BACHELOR OF SCIENCE IN INDUSTRIAL
ENGINEERING at Cebu Technological University – Bantayan Extension Campus, Manan-ao,
Bantigue, Bantayan, Cebu has been examined and is recommended for acceptance and approval
for ORAL EXAMINATION.
UNDERGRAD THESIS ADVISORY COMMITTEE

THESIS ADVISORY COMMITTEE

ENGR. GEORGE E. MICHAEL ESGANA

Feasibility Instructor

Approved by the Committee on Oral Examination with the grade of _______

PASSED. PANEL OF EXAMINERS

___________________________ ___________________________

Member Member

___________________________

Member

APPROVED AND ACCEPTED in partial fulfillment of the requirements for the degree
COURSE

Date of Oral Examination: ____________

_________________________

Dean, College of Engineering

 Acknowledgment

We would like to express our deepest gratitude of the following that helped us to reach of

our feasibility study.

First to our Almighty God, for giving us the strength and guidance during the entire process

of this study and to finish this study.

To our thesis mentors, Engr. George Michael Esgana, and Engr. Clarisa Joy Rivera, for

their invaluable guidance, support and commitment throughout our Feasibility Study. We are

deeply thankful for their selfless dedication and, patience and invaluable advice. We are very

fortunate to have such amazing mentors who have been so inspiring and motivating throughout

the project. We are truly grateful for the expertise and skills they have shared with us. We would

not have been able to complete this project without their unwavering support.

To our campus director, Ms. Girlie F. Fariola, for assisting our group and sharing new

learnings to us with patience. We are thankful for your dedication, patience and invaluable advice.

To our financial adviser, Mr. Bonifacio Lumacang Jr. for his invaluable guidance and

support throughout our financial planning journey. He has been a great source of knowledge and

advice, helping us to make informed decisions about our investments, savings and other financial

matters. His expertise and commitment to excellence have been a great asset to us and we are

deeply grateful for all his help.

Our heartfelt thanks to our parents for their unconditional love, support and encouragement

throughout the study.

We would like to thank also our respondents for their cooperation, support, and valuable

insights. Without them, this study wouldn’t have been possible.

 To all members of the group, thank you for expecting your best efforts, for the sleepless

nights and for not giving up. Thank you for all your hard work and deep understanding, all

throughout.

Lastly, we sincerely acknowledge and gave thanks to the above-mentioned person/s that

has brought the success in doing this feasibility study. We are very grateful for this wonderful

accomplishment.
CHAPTER I. THE PROBLEM AND ITS SCOPE ........................................................................ 1

1.1 Executive Summary ........................................................................................................ 1

1.2 Introduction ..................................................................................................................... 2

1.2.1 Rationale of the Study................................................................................................. 2

1.2.2 Theoretical Background .............................................................................................. 6

1.2.3 Review of Related Literature .................................................................................... 11

1.2.4 Flow of Research Process ......................................................................................... 20

1.3 The Problem .................................................................................................................. 21

1.3.1 Statement of the Problem .......................................................................................... 21

1.3.2 Statement of Assumptions ........................................................................................ 23

1.3.3 Significance of the Study .......................................................................................... 24

1.4 Methodology ................................................................................................................. 26

1.4.1 Research Environment .............................................................................................. 26

1.4.2 Research Respondents .............................................................................................. 28

1.4.3 Research Instruments ................................................................................................ 29

1.4.4 Research Procedures ................................................................................................. 30

1.5 Definition of Terms....................................................................................................... 31

CHAPTER II. ................................................................................................................................ 32

2.1 Company Logo and Location .............................................................................................. 32

2.1.1 Company Logo ............................................................................................................. 32

2.2 Business Strategy Statement ............................................................................................... 36

2.3 Vision, Mission, Goals, Objectives and Core Values ......................................................... 38

2.4 Critical Success Factors and Strategic Approach ................................................................ 40

2.5 Business Model ................................................................................................................... 42

2.5.1. Customer Segments ..................................................................................................... 43

2.5.2. Value Proposition ........................................................................................................ 45

2.5.3. Channels ...................................................................................................................... 45

2.5.4. Customer Relationships ............................................................................................... 47

2.5.5. Revenue Streams ......................................................................................................... 49

2.5.6. Key Resources ............................................................................................................. 49

2.5.7. Key Activities .............................................................................................................. 56

2.5.8. Key Partners ................................................................................................................ 59

2.5.9. Cost Structure .............................................................................................................. 61

2.6. Competitive Position and the Competitors......................................................................... 62

2.7 Five Forces Model ............................................................................................................... 63

2.7.1. Rivalry among Existing Competition .......................................................................... 64

2.7.2. Potential Entry of New Competition ........................................................................... 65

2.7.3. Entry of Substitute Products ........................................................................................ 65

2.7.4. Bargaining Power of Suppliers .................................................................................... 65

2.7.5 Bargaining Power of Buyers......................................................................................... 66

 2.8 SCOT Analysis .................................................................................................................... 66

2.9 Action Plan .......................................................................................................................... 69

2.10 Roadmap............................................................................................................................ 71

CHAPTER III. .............................................................................................................................. 73

3.1 Product Concepts................................................................................................................. 73

3.1.1. Name and Uses of Product/s........................................................................................ 73

3.1.2. Market Preferences on Product Design ....................................................................... 74

3.1.3 Pictorial Sketch ............................................................................................................. 75

3.1.6 Features and Benefits.................................................................................................... 77

3.1.7 Characteristics of the Product ....................................................................................... 79

3.2 Target Market ...................................................................................................................... 80

3.2.1 Catchment Area ............................................................................................................ 81

3.2.2 Market Segmentation .................................................................................................... 82

3.2.3 Buying Decision Behavior............................................................................................ 83

3.2.4 Buyer Decision Process ................................................................................................ 83

3.2.5 Positioning Map............................................................................................................ 84

3.2.6 Catchment Area ............................................................................................................ 85

3.2.7 Description of Industry ................................................................................................. 88

3.2.8 Segmentation Basis....................................................................................................... 90

3.2.9 Operating Characteristics ............................................................................................. 91

 3.2.10 Purchasing Process and Approaches .......................................................................... 92

3.3 Population Information ....................................................................................................... 94

3.4 Sample Size ......................................................................................................................... 94

3.5 Summary of Survey results ................................................................................................. 96

3.6 Market Study Results ........................................................................................................ 127

3.6.2 Qualitative Demand Analysis ..................................................................................... 141

3.6.3 Supply Analysis .......................................................................................................... 143

3.6.4 Market Share Estimation ............................................................................................ 149

................................................................................................................................................. 151

3.6.5 Sales Projection .......................................................................................................... 157

3.7 Marketing Mix Decisions .................................................................................................. 159

3.7.1 Product ........................................................................................................................ 159

3.7.2 Price ............................................................................................................................ 163

3.7.3 Placement.................................................................................................................... 168

3.7.4 Promotions .................................................................................................................. 171

3.8 Life Cycle Strategies ......................................................................................................... 173

3.8.1 Introduction Stage....................................................................................................... 174

3.8.2 Growth Stage .............................................................................................................. 174

3.8.3 Maturity Stage ............................................................................................................ 175

3.8.4 Decline Stage .............................................................................................................. 176

CHAPTER IV. ............................................................................................................................ 177

4.1 Design Constraints Analysis ............................................................................................. 177

4.2 Production Process ............................................................................................................ 180

4.2.1 Process Type ............................................................................................................... 180

4.2.3 Process Flow Chart ..................................................................................................... 182

4.2.3 Precedence Table ........................................................................................................ 184

4.2.4 Precedence Diagram ................................................................................................... 187

4.2.5 Assembly Chart .......................................................................................................... 188

4.2.7 Process Schematic Diagram ....................................................................................... 189

4.3 Work Cycle Analysis ........................................................................................................ 190

4.3.1 Cycle Time ................................................................................................................. 190

4.3.2 Number of Workstations ............................................................................................ 191

4.3.3 Line Efficiency ........................................................................................................... 192

4.3.4 Final Output ................................................................................................................ 193

4.4 Production Capacity .......................................................................................................... 194

4.4.1 Manpower ................................................................................................................... 194

4.4.2 Machine ...................................................................................................................... 195

4.4.3 Space Capacity ........................................................................................................... 196

4.5 Plant Layout and Location ................................................................................................ 196

4.5.1 Location Plan and Analysis ........................................................................................ 198

 4.5.2 Structural Limitations ................................................................................................. 200

4.5.3 Space Constraints ....................................................................................................... 200

4.5.4 Space Requirements ................................................................................................... 201

4.5.4.1 Production Facilities and Equipment .......................................................................... 202

4.5.6 Space Allocations ....................................................................................................... 212

4.5.7 Summative Space Requirements and Allocations ...................................................... 213

4.5.8 Layout Type................................................................................................................ 213

4.5.9 Layout of Functional Areas ........................................................................................ 214

4.5.10 Floor Plan ................................................................................................................. 215

4.5.11 Floor Plan with Work Flow ...................................................................................... 216

4.6 Work Systems Design ....................................................................................................... 219

4.6.1 Workstation Design .................................................................................................... 220

............................................................................................................................................. 221

............................................................................................................................................. 222

............................................................................................................................................. 222

............................................................................................................................................. 224

............................................................................................................................................. 224

4.6.2 Work Environment ..................................................................................................... 226

4.6.3 Lumens Requirement .................................................................................................. 226

4.6.4 Ventilation Requirement............................................................................................. 226

 4.6.5 Noise Level ................................................................................................................. 227

4.6.6 Temperature ................................................................................................................ 228

4.7 Master Production Schedule.............................................................................................. 230

4.8 Materials Requirement Planning ....................................................................................... 231

4.8.1 Product Structure Tree ................................................................................................ 231

4.8.2 Materials Specification ............................................................................................... 232

4.8.3 Parts List ..................................................................................................................... 234

4.8.4 Bill of Materials .......................................................................................................... 235

4.9 Product Costing and Pricing .............................................................................................. 236

4.9.1 Cost of Materials ........................................................................................................ 236

4.9.2 Cost of Labor .............................................................................................................. 239

4.9.3 Cost of Overhead (percentage standard) .................................................................... 241

4.9.4 Product Price............................................................................................................... 244

4.10 Management of Quality ................................................................................................... 245

4.11 Facilities and Equipment Maintenance ........................................................................... 252

4.11.1 Maintenance of Production Facilities ....................................................................... 252

4.11.2 Maintenance of Non-Production Facilities ............................................................... 254

4.12 Supply Chain Management ............................................................................................. 256

4.12.1 Procurement Strategies ............................................................................................. 258

4.12.2 Warehousing System ................................................................................................ 259

 ................................................................................................Error! Bookmark not defined.

4.12.3 Supply Chain Strategies............................................................................................ 262

4.13 Green Manufacturing Practices ....................................................................................... 263

4.13.1 Types of Wastes Generated ...................................................................................... 263

4.13.3 Energy-Efficient Technologies ................................................................................. 265

4.13.4 Eco-Friendly Materials ............................................................................................. 266

4.13.6 Life Cycle Analysis .................................................................................................. 268

CHAPTER V. ............................................................................................................................. 269

5.1 Pre-Implementation Stage ................................................................................................. 269

5.1.1 Pre-operating Activities.................................................................................................. 269

5.1.2 Project Timetable .................................................................................................... 270

Code ............................................................................................................................................ 270

Activity Description ................................................................................................................ 270

5.1.3 Program Evaluation and Review Technique (PERT) ................................................. 271

5.1.4 Project Duration Time ................................................................................................ 272

5.1.5 Gantt Chart ................................................................................................................. 273

5.1.6 Cost Estimates ............................................................................................................ 274

5.1 Implementation Stage ................................................................................................. 276

5.1.1 Form of Organization.............................................................................................. 276

5.1.2 Organizational Structure ......................................................................................... 277

 5.1.3 Manpower Requirement.......................................................................................... 278

7.1 Financing and Financial Projections ................................................................................. 282

7.1.1.1 Initial Capitalization............................................................................................ 282

CHAPTER VIII. ......................................................................................................................... 304

CHAPTER IX. SUMARY OF FINDINGS, AND RECOMMENDATIONS ............................ 307

9.0 Summary of Findings ........................................................................................................ 307

Findings .............................................................................................................................. 308

B. Technical Aspect ........................................................................................................... 309

Management Aspect .......................................................................................................... 310

Financial Aspect.......................................................................................................................... 312

Socio-Economic and Environmental Aspect ....................................................................... 313

9.1 Conclusions ....................................................................................................................... 314

9.3 Recommendations ............................................................................................................. 314

Table of Contents

Table of Contents --------------------------------------------------------------------------------

List of Tables -------------------------------------------------------------------------------------------

List of Figures ----------------------------------------------------------------------------------------

List of Tables
Table 1: Critical Success Factors ................................................................................................. 40

Table 2:Customer Segments ........................................................................................................ 43

Table 3: Customer Relationships ................................................................................................. 47

Table 4: Key Resources ............................................................................................................... 50

Table 5: Raw Materials ................................................................................................................ 51

Table 6: Machines ........................................................................................................................ 52

Table 8: Regulatory and Compliance........................................................................................... 54

Table 9: Key Activities ................................................................................................................ 56

Table 10: Key Partners................................................................................................................. 59

Table 11: Cost Structure .............................................................................................................. 61

Table 12: Action Plan ................................................................................................................... 69

Table 13: Features of eCOIR ........................................................................................................ 77

Table 14: Benefits of eCOIR ....................................................................................................... 78

Table 15: Age of Respondents ..................................................................................................... 96

Table 16: Respondents Gender ..................................................................................................... 97

Table 17: Monthly Income............................................................................................................ 98

Table 18: Question 1 ..................................................................................................................... 99

Table 19: Question 2 ................................................................................................................... 100

Table 20: Question 3 ................................................................................................................... 101

Table 21: Question 4 ................................................................................................................... 102

Table 22: Question 5 ................................................................................................................... 103

Table 23: Question 6 ................................................................................................................... 103

Table 24: Question 7 ................................................................................................................... 104

Table 25: Question 8 ................................................................................................................... 105

Table 26: Question 9 ................................................................................................................... 106

Table 27: Question 10 ................................................................................................................. 107

Table 28: Question 11 ................................................................................................................. 108

Table 29: Question 12 ................................................................................................................. 109

Table 30: Question 13 ................................................................................................................. 110

Table 31: Question 14 ................................................................................................................. 111

Table 32: Question 15 ................................................................................................................. 111

Table 33: Question 16 ................................................................................................................. 112

Table 34: Question 17 ................................................................................................................. 113

Table 35: Question 18 ................................................................................................................. 113

Table 36: Question 19 ................................................................................................................. 114

Table 37: Question 1 (Types of Business) .................................................................................. 115

Table 38: Question 2 (Frequency) .............................................................................................. 115

Table 39: Question 3 (Types of bag use) .................................................................................... 116

Table 40: Question 4 (Plastic Bags)............................................................................................ 117

Table 41: Paper Bag .................................................................................................................... 117

Table 42: Eco bag ....................................................................................................................... 118

Table 43: Question 5- Number of purchase (Plastic Bag) .......................................................... 119

Table 44: Number of purchase (Paper Bag) ............................................................................... 119

Table 45: Number of purchase (Eco bag Bag)............................................................................ 120

Table 46: Question 6 (Factors for Purchasing Decision) ............................................................ 121

Table 47: Question 7 (Name of Supplier) ................................................................................... 122

Table 48: Question 8 (Familiarity with coconut coir bag) .......................................................... 123

Table 49: Question 9 (Willingness to purchase) ......................................................................... 123

Table 50: Question 10 (Minimu order) ....................................................................................... 124

Table 51: Question 11 (Supplier Qualities) ................................................................................ 125

Table 52: Question 12: Coir bag Features .................................................................................. 125

Table 53: Question 13 (Challenges) ........................................................................................... 126

Table 54: Demand analysis Question 1 ...................................................................................... 128

Table 55: Demand Analysis Question 8 ..................................................................................... 129

Table 56: Growth Rate (Consumer) ............................................................................................ 132

Table 57: Growth Rate (Business Entities) ................................................................................. 133

Table 58: Municipality of Bantayan, Consumers and Business Population Growth Rate

(consuming and selling shopping bag product) .......................................................................... 134

Table 59: Potential Market (Business to Consumer) .................................................................. 137

Table 60: Potential Market (Business to Business) .................................................................... 137

Table 61: Available Market for eCOIR (Business to Consumer) ............................................... 138

Table 62: Available Market for eCOIR (Business to Business) ................................................. 138

Table 63: Annual Demand 2024 ................................................................................................. 139

Table 64: Estimated Annual Demand considering number of eco bags per purchase ................ 139

Table 65: Estimated Annual Demand (Business to Business) .................................................... 140

Table 66: Estimated Annual Demand considering number of Eco bags per purchase ............... 140

Table 67: Estimated Annual Demand considering number of Plastic bags per purchase .......... 140

Table 68: Estimated Annual Demand considering number of Paper bags per purchase ............ 141

Table 69: Annual Supply of Every Competitors......................................................................... 143

Table 70: Annual Supply of Other Competitors ......................................................................... 145

Table 71: Past Supply of Competitors ........................................................................................ 145

Table 72: Past Supply of Competitors ........................................................................................ 146

Table 73: Annual Supply of eCOIR BAG .................................................................................. 147

Table 74: Market Forecasting of eCOIR BAG ........................................................................... 148

Table 75: Market Share for the year 2026 .................................................................................. 149

Table 76: Market Share for the year 2027 .................................................................................. 150

Table 77: Market Share for the year 2028 .................................................................................. 151

Table 78: Market Share for the year 2028 .................................................................................. 152

Table 79: Market Share for the year 2030 .................................................................................. 153

Table 80: Actual Market ............................................................................................................. 155

Table 81: Bill of Material of Small Sized Product ..................................................................... 155

Table 82: Bill of Material of Medium Sized Product ................................................................. 156

Table 83: Bill of Material of Large Sized Product ........................Error! Bookmark not defined.

Table 84: Sales Projection .......................................................................................................... 158

Table 85: Total Sales Projection ................................................................................................. 158

Table 86: Life Cycle Strategies................................................................................................... 173

 List of Figures

Figure 1: Conceptual Framework ................................................................................................. 10

Figure 2: Location of the research study ..................................................................................... 27

Figure 3: Research Procedure ...................................................................................................... 30

Figure 4: Company logo .............................................................................................................. 32

Figure 5: Location of Production Facility.................................................................................... 34

Figure 6: Location of Physical Store ........................................................................................... 35

Figure 7: Business Model ............................................................................................................ 42

Figure 8: Five Force Model ......................................................................................................... 64

Figure 9: SCOT Analysis............................................................................................................. 67

Figure 10: Road Map .................................................................................................................... 71

Figure 11: Pictorial Sketch (small eCOIR) .................................................................................. 75

Figure 12: Pictorial Sketch (Medium eCOIR) ............................................................................. 76

Figure 13: Pictorial Sketch (Large eCOIR) ................................................................................. 76

Figure 15: Top Island View of Business Location with Bantayan Island ................................... 81

Figure 16: Location of Physical Store ......................................................................................... 81

Figure 17: Buyer Decision process .............................................................................................. 84

Figure 18: Positioning Map ......................................................................................................... 85

Figure 19: Top Island View of Business Location with Bantayan Island ................................... 86

Figure 20: Business Location ...................................................................................................... 87

Figure 21: Purchasing to Supplier ............................................................................................... 93

Figure 22: Decision Tree ............................................................................................................ 136

Figure 23: Market Share for the Year 2026 ................................................................................ 150

Figure 24: Market Share for the Year 2027 ................................................................................ 151

Figure 25: Market Share for the Year 2028 ................................................................................ 152

Figure 26: Market Share for the Year 2029 ................................................................................ 153

Figure 27: Figure NA. Market Share for the Year 2030 ............................................................. 154

Figure 28: Levels of Service ....................................................................................................... 160

Figure 29: Company logo ..............................................................Error! Bookmark not defined.

Figure 30: Front of the Tag ......................................................................................................... 162

Figure 31: Back of the Tag ......................................................................................................... 162

Figure 32: Product mix pricing strategy ..................................................................................... 167

Figure 33: Value Delivery Network ........................................................................................... 169

Figure 34: Marketing Communications Mix .............................................................................. 171

Figure 35: Product Structure Tree..................................................Error! Bookmark not defined.

 CHAPTER I. THE PROBLEM AND ITS SCOPE

1.1 Executive Summary

1
1.2 Introduction

1.2.1 Rationale of the Study

The widespread use of plastic bags and other single-use plastic products has become a routine

part of daily life, offering undeniable convenience and practicality. Unfortunately, this

convenience comes at a severe long-term cost to the environment and public health. The harmful

effects of plastic far outweigh its benefits. Kumari et al. (2024) highlights the serious health risks

posed by plastics, which contain harmful chemicals like Bisphenol A (BPA) and phthalates. These

chemicals can cause respiratory problems, cancer, reproductive disorders, and other health issues.

Additionally, plastics contribute to severe environmental pollution, affecting soil, water, and air.

Each year, approximately 500 billion plastic bags are consumed worldwide, equating to over one

million bags per minute (Plastic Oceans, 2024). This type of plastic could take approximately 10

to 1000 years to decompose, contributing significantly to long-term environmental problems.

(Hossain, 2020). One such problem is contamination of soil and water and posing serious hazards

to wildlife both on land and in the ocean (Cozaar, et al. 2020).

A report by the Ocean Conservancy and McKinsey Center for Business and Environment

identified the Philippines as the third-largest source of plastic pollution in the ocean, with the

highest collection of plastic waste in Southeast Asia. This problem is a critical concern since the

fishing industry is a crucial livelihood for many communities in the Philippines, contributing

significantly to local economies and food security. A study by the Philippine Institute for

Development Studies (2020) highlights that plastic pollution leads to reduced catch sizes and

increased costs for fishers, as they must navigate polluted waters and deal with entanglement and

habitat loss. This can intensify poverty levels among coastal communities, many of which depend

entirely on fishing for their livelihoods.

2
 As environmental issues rise, awareness of environmental sustainability is increasingly

shaping consumer behavior and industry practices. This heightened consciousness is driving the

demand for sustainable products, such as eco-friendly bags, which are considered essential for

reducing plastic waste and promoting effective environmental management. In the "Reusable

Shopping Bag Market Report 2024 (Global Edition)," Mali (2024) projects that the market for

reusable shopping bags will reach USD 10,681.2 million by 2024. The report anticipates a

compound annual growth rate (CAGR) of 3.00% from 2024 to 2031.

The increasing concern over plastic pollution, especially from traditional marketplaces and

retail establishments, highlights the need for sustainable alternatives to single-use plastics. Plastic

waste, particularly from shopping bags and packaging, contributes significantly to environmental

degradation, with harmful impacts on ecosystems and human health. Reusable eco-friendly bags,

made from materials that decompose naturally, offer a durable, affordable, and sustainable

alternative. These bags not only reduce plastic waste but also avoid the harmful substances

associated with plastic production and disposal, making them a perfect substitute for harmful

plastic bags (Lynch, 2021).

Coconut coir, a byproduct of coconut farming, presents a viable solution for creating these

eco-friendly alternatives. The abundance of coconut fiber in the Philippines, particularly in Central

Visayas, makes it a stable resource for producing sustainable goods like brushes, mats, ropes, and

eco-bags. Coir fibers, extracted from coconut husks, are not only strong and durable but are also

biodegradable. While coconut husks are often discarded or burned, leading to pollution and soil

degradation, converting them into eco-friendly products addresses both environmental and

agricultural waste concerns (Tatum, 2023). In doing so, the utilization of coconut coir helps create

3
a sustainable society by reducing waste and minimizing the environmental impact of improper

disposal.

Bantayan Island, located in northern Cebu, is a major producer of coconuts, yet much of

its coconut by-products remain underutilized. The disposal of coconut husks, particularly when

burned, poses a significant environmental hazard, as the emissions exceed air quality limits,

contributing to respiratory issues and global warming (Derick, 2016). Repurposing these husks

into coir-based eco-bags offers an innovative approach to managing agricultural waste while

providing additional income opportunities for coconut farmers. The rising consumer demand for

reusable and recyclable products presents a market opportunity for such eco-bags, supporting both

waste management and livelihood development (Babyloni et al., 2022).

In support of this initiative, the Municipality of Bantayan enacted Resolution no. 349,

Ordinance No. 20, Series of 2019, which regulates the use of single-use plastics and Styrofoam as

packaging materials. The ordinance promotes eco-friendly alternatives like woven bags, paper

bags, and reusable containers through the “Balik Basket Bantayan” and “Bring Your Own Bag”

programs. These programs encourage consumers to adopt sustainable practices by using eco-

friendly containers when shopping. The ordinance also provides incentives for businesses and

consumers who comply with the regulations, helping to reduce plastic waste while reviving local

industries such as basket weaving. By aligning with this ordinance, the proposed eco-bag business

not only supports environmental protection efforts but also contributes to local economic growth.

The primary purpose of this feasibility study is to explore the production and market

viability of eco-bags made from coconut coir in Bantayan Island. This study addresses two critical

issues: the excessive agricultural waste from underutilized coconut husks and the growing plastic

pollution in the Municipality of Bantayan. By converting coconut coir into eco-bags, this project

4
offers a sustainable solution for reducing plastic waste and creates an additional income stream for

coconut farmers. Moreover, it aligns with local government initiatives, contributing to both

environmental conservation and economic development in the community.

5
 1.2.2 Theoretical Background

The production of coconut coir eco-bags as an alternative to single-use plastics is grounded

in several legal bases and key theories related to environmental sustainability, consumer behavior,

and innovation. These theoretical foundations help explain the feasibility and potential success of

introducing a sustainable product in Bantayan Island, particularly in light of the local ordinance

banning single-use plastic.

Legal Bases

Ecological Solid Waste Management Act of 2000 (Republic Act No. 9003). This is a

vital legal framework for promoting sustainable waste management practices throughout the

Philippines. This law emphasizes waste reduction, resource conservation, and the adoption of eco-

friendly alternatives to minimize environmental impact. Specifically, it aims to decrease the

reliance on harmful materials, such as single-use plastics, by encouraging the use of sustainable

and biodegradable products. Additionally, the act promotes the development of innovative

solutions that reduce waste generation and improve resource recovery.

Our study aligns with the objectives of RA 9003 by proposing the production of coconut

coir eco-bags as an alternative to plastic bags. Bantayan is rich in coconut trees, yet the coconut

husks, which are a byproduct of coconut farming, are often underutilized and discarded. By

converting these husks into durable, reusable eco-bags, this initiative not only addresses the local

need for waste reduction but also supports the island's economy by utilizing a resource that is

readily available. The production of coconut coir eco-bags directly supports the local government's

efforts to enforce the ban on single-use plastics, as stipulated in RA 9003. This initiative fosters a

culture of sustainability within the community, encouraging residents and businesses to adopt

environmentally friendly practices. By emphasizing the importance of resource conservation and

6
ecological balance, our study highlights how the goals of RA 9003 can be achieved at a local level,

ultimately contributing to a more sustainable future for Bantayan Island.

Resolution No. 349 (Ordinance No. 20 S. 2019). The Municipality of Bantayan enacted

Ordinance No. 20 to regulate the use of single-use plastics and styrofoam as packaging and food

containers. It promotes the use of alternative, eco-friendly packaging options such as woven bags,

paper bags, and reusable containers. The ordinance specifically introduces the "Balik Basket

Bantayan" and "Bring Your Own Bag” programs, which encourage residents and businesses to

adopt sustainable practices by using reusable bags and containers. Violations of the ordinance

result in fines for both businesses and consumers, and repeat offenders may face the cancellation

of their business licenses.

This ordinance is crucial to our study as it supports the production and adoption of coconut

coir eco-bags in Bantayan Island. By banning single-use plastics, the local government has created

a favorable environment for eco-friendly alternatives like coir-based bags, which align with the

objectives of the ordinance. The introduction of these eco-bags not only helps reduce plastic waste

but also complements the municipality’s goal of fostering sustainable practices within the

community. Moreover, the production of coconut coir eco-bags directly addresses the ordinance’s

requirement for alternative packaging solutions, making it an essential legal basis for our study.

The ordinance emphasizes the need for a shift toward environmentally responsible consumption,

which is critical for the success of our initiative to reduce waste and promote the use of sustainable

materials.

By grounding our study in these legal frameworks, we underscore the importance of

sustainability in both economic and environmental terms. Our initiative supports local regulations

7
while contributing to broader efforts to minimize environmental impact through innovative and

sustainable products.

Theories

Sustainability Theory. This study emphasizes the importance of meeting present needs

without compromising the ability of future generations to meet their own, a concept central to

addressing environmental issues like plastic pollution. The production of eco-bags from coconut

coir, a biodegradable and renewable resource, aligns with this principle by offering an

environmentally friendly alternative to plastic bags. The Brundtland Report (World Commission

on Environment and Development, 1987) introduced the idea of sustainable development, which

has since been widely adopted in efforts to promote the use of natural materials, such as coconut

coir. Coconut coir, a byproduct of coconut farming, is both abundant and sustainable, contributing

to long-term environmental goals by reducing the reliance on non-biodegradable plastics. Studies

also demonstrate the benefits of utilizing biodegradable materials, such as coir, to mitigate the

global plastic waste crisis (Geyer et al., 2017). Additionally, the use of coir supports the circular

economy model by turning agricultural waste into valuable products, further reducing waste and

promoting resource efficiency.

Green Consumer Theory. This study examines the behaviors and motivations of

consumers who prefer products that are less harmful to the environment. As consumer awareness

of environmental issues grows, so does the demand for eco-friendly products. Studies show that

green consumers are willing to pay more for environmentally sustainable goods, and this trend has

been rising over the years (Laroche, Bergeron, & Barbaro-Forleo, 2001). This theory supports the

idea that eco-conscious consumers are likely to adopt coconut coir eco-bags as substitutes for

single-use plastics, particularly in regions like Bantayan Island, where local government policies

8
ban single-use plastics. The green marketing approach, which highlights the environmental

benefits of a product, explains why eco-conscious consumers are attracted to products like these

eco-bags (Peattie, 2010). The local ordinance banning single-use plastics provides a regulatory

framework that complements consumer interest in sustainable alternatives, making eco-bags made

from coconut coir more appealing to the market. Furthermore, psychological drivers, such as the

desire for social responsibility and alignment with personal values, are key factors influencing

green consumer behavior, making your eco-bags an attractive solution to those seeking to

minimize their environmental footprint.

Innovation Diffusion Theory (Everett Rogers, 2003) explains how new ideas or products

spread within a community or society over time. Several factors influence adoption, including

relative advantage (the perceived benefit of the innovation over existing products), compatibility

with societal values, complexity (ease of use), trialability (opportunity to test), and observability

(visibility of the innovation's benefits). Coconut coir eco-bags offer a clear relative advantage over

plastic alternatives due to their biodegradability, sustainability, and compatibility with the

environmental goals of Bantayan Island. The local ordinance banning single-use plastics creates

an environment conducive to adopting such eco-friendly alternatives. According to this theory,

early adopters, such as environmentally conscious consumers or businesses, play a critical role in

spreading the use of these eco-bags to the broader market. Research has shown that social

desirability and the perceived performance of green products also influence consumer decisions

(Shah et al., 2002), which can accelerate the diffusion of these eco-bags within the community.

The adoption process can be mapped through five stages: knowledge, persuasion, decision,

implementation, and confirmation, which eco-bags are likely to follow as more consumers and

businesses become aware of their benefits.

9
Figure 1: Conceptual Framework

10
 1.2.3 Review of Related Literature

The growing environmental concerns over plastic pollution have led to an increased demand

for sustainable alternatives, particularly in the retail and grocery sectors. Coconut coir, a natural

fiber derived from coconut husks, presents a viable solution for eco-friendly shopping bags. This

section explores relevant literature on the properties of coconut coir, its durability, binding

characteristics, and environmental impact, assessing its feasibility as a sustainable alternative to

conventional plastic and reusable grocery bags.

Coconut coir structure, properties and applications

Structure

In the realm of industrial fibers, coconut fiber (Cocos nucifera L.), also known as coir, is

extracted from the husk of coconuts, a secondary crop that is produced in large quantities. Each

coconut tree annually yields between 50 and 100 fruits, which take approximately one year to

ripen. The mature coconuts are either ovoid or ellipsoid in shape, typically measuring 30–45 cm

in length and 15–20 cm in diameter, with a thick fibrous husk surrounding the single-seeded nut

(Encyclopaedia Britannica, 1982). Each fruit weighs around 1–2 kg, and the husk makes up about

30% of this weight. Major regions of coconut fiber production are coastal areas in tropical regions,

including India, Sri Lanka, the Philippines, Indonesia, Malaysia, Fiji Islands, Vietnam, Hawaii,

Papua New Guinea, and the Solomon Islands. For over a century, India, the largest producer, along

with Sri Lanka, has been responsible for nearly 90% of the world’s coconut fiber production (FAO,

2013).

The FAO reports (2013, 2015) indicate a steady growth in the production of coconut fiber

and its associated yarn in India, driven by increasing global demand for eco-friendly,

biodegradable, and natural materials. Coconut fiber production has been rising at a rate of 37%,

11
while yarn production has grown by 10%. This growth in India mirrors global trends, especially

for brown fiber, which is extracted mechanically from mature husks. Brown fiber production has

surged from 335,000 to 459,000 tons, whereas the production of white fiber, which is traditionally

obtained through backwater retting, has decreased from 95,000 to 81,000 tons due to societal and

technological concerns.

The conventional fiber extraction method known as "retting," which involves soaking

coconut husks in backwater lagoons for 6–12 months to produce softer, spinnable white fibers, is

rapidly declining in India. This method has caused significant pollution in open water bodies and

contributed to occupational health hazards, especially for women involved in the process. Manual

yarn production, which follows the renting process, is labor-intensive, contributing to a decline in

India's yarn production. This reduction has affected the global export of yarn and products such as

mats, matting, and rugs. Moreover, raw fiber extraction through mechanical means has led to an

increase in fiber exports, from 97,000 to 505,000 tons, without adding significant value.

The coconut fiber industry now faces the challenge of finding alternatives to traditional

retting to produce high-quality fibers and to mechanize the processing of these fibers into finer

yarns and products. This would help eliminate environmental pollution and reduce the laborious

tasks associated with manual yarn production (Handbook of Natural Fibres, 2020).

12
Physical and Mechanical Properties

Coconut fiber exhibits significant variation in length, ranging from 8 mm to 337 mm, with

approximately 81.95% measuring between 15 mm and 145 mm (van Dam et al., 2006). The

average fineness is reported at 27.94 tax (Wei and Gu, 2009), and the density of unrutted fibers is

about 1.15 g/cm³, increasing to 1.32 g/cm³ post-retting (van Dam et al., 2006). The fiber's moisture

regain varies from 8% to 12.5% at 65% relative humidity, with untreated fibers capable of

absorbing up to 61% water (Rahman and Khan, 2007). The tenacity ranges from 10 to 15 g/tex,

indicating that shorter fibers are stronger, with a permanent deformation of around 11% for spans

of 50 to 100 mm (van Dam et al., 2006).

Chemically, coconut fiber consists of 50.9% polysaccharides (mainly glucose), lignin,

pectin, and inorganic salts (Wei and Gu, 2009). Elemental analysis reveals 49.6% carbon and 6.1%

hydrogen, with a surface composition of 69.1% carbon and 27.4% oxygen (Mahato et al., 1993).

Its hydrophobic nature, attributed to a lower oxygen-to-carbon ratio, along with thermal resistance

and biodegradability, enhances its suitability for various applications, including horticulture and

construction (Yueping et al., 2010).

Applications

Coconut fiber is primarily utilized to produce yarn, available in various forms such as bales,

spools, and balls for industrial and agricultural applications. The price for high-quality Angengo

240 yarn ranges from $100 to $143 per 100 kg, while lower-quality varieties are priced

significantly lower (FAO, 2013). Beyond textiles, coconut fiber is used in the manufacture of mats

and mattresses, with rubberized variants gaining popularity due to their superior resiliency and

13
lighter weight. Additionally, coconut coir is employed in geotextiles and agrotextiles to prevent

soil erosion and promote vegetation growth. Coconut fiber logs are also utilized for shoreline

protection and can be pre-seeded to enhance vegetation growth.

Coconut Coir as an Eco-bag

Coconut coir, derived from coconut husks, has often been viewed as waste or used as fuel,

leading to air pollution and increased carbon dioxide emissions (Munib, 2021). While studies have

compared alternatives like paper and plastic packaging, coconut coir emerges as a promising eco-

friendly solution when processed correctly (Magno et al., 2023). Traditionally, coir fibers are used

to make sacks for agricultural products such as tobacco, cloves, coffee, and tea. However, these

sacks frequently become waste due to degradation or tearing, complicating disposal (Munib,

2021). Repurposing coconut coir into various applications represents a viable waste management

strategy. For example, coir sacks can be transformed into durable and sustainable materials like

bags, taking advantage of coir's thicker, stronger fibers and their natural resistance to bacteria and

fungi (Munib, 2021). This makes coir an ideal candidate for eco-friendly bag production.

Research by Babalola and Olorunnisola (2019) investigated the potential of coconut husk

fibers to enhance bioplastics made from cassava starch. They found that brown coconut fibers,

which are thicker and stronger than white fibers, offer advantages such as moisture and decay

resistance. These fibers also possess excellent tensile strength, crucial for producing durable eco-

friendly materials like bags.

14
 Global research has focused on developing sustainable natural fiber composites as

alternatives to synthetic materials. Nandan et al. (2023) reported that coir fibers, particularly from

mature coconuts, exhibit higher lignin content, resulting in superior strength and durability

compared to traditional materials like paper. Coir-based composite materials demonstrated better

tensile strength than standard paper bags, suggesting they are a viable substitute. However, these

composites do absorb more water, which limits their capacity to carry liquids. Despite this

limitation, the enhanced durability and strength of coir bags make them a practical alternative to

paper bags, which are more prone to tearing (Panes et al., 2021).

A Sustainable Material

The coconut palm (Cocos nucifera L.) is a perennial crop propagated by seeds, widely

grown in tropical regions due to its adaptability (Arunachalam 2005). In 2019, major coconut

producers included Indonesia, the Philippines, and India, with Indonesia leading global production

(Food and Agriculture Organization 2021). The coconut’s ability to resist saltwater and

biodegradation allows it to spread naturally along coasts (Rethinam 2018), and it has been used

for centuries for food, oil, and shelter (Foale et al. 2020).

Coconuts are primarily harvested for copra and oil, surrounded by a husk made of coir and

pith (Thampan 1981). Mature coconuts produce strong brown coir, while immature coconuts yield

weaker white coir fibers (Meenatchisunderam 1980). The most common fiber extraction method

is retting, a process where the husk absorbs water, allowing bacteria and fungi to release enzymes

that break down plant materials (Nambudiri et al. 1972). Chemicals like lime and sodium sulfate

can accelerate the process (Jayasankar and Bhat 1964), while mechanical pre-treatments like

splitting the husk also speed it up (Varma et al. 1984).

15
 Modern fiber separation uses motorized processes to separate coir fibers from pith. Due to

its high lignin and cellulose content, coir pith decomposes slowly, raising environmental concerns

(Nunes 2020). However, studies highlight coir’s potential for eco-friendly applications, supporting

sustainable development goals (Stelte et al. 2023). These methods reflect the coconut’s growing

role in sustainable, biodegradable material production.

Coconut Coir as an Alternative to Plastic Bags

Coconut coir, a fibrous material derived from the middle layer (mesocarp) of the coconut, is

well-known for its ability to promote plant growth (Holman et al., 2005). However, some

gardeners have encountered challenges due to its high salt content, which can hinder nutrient

absorption (Grant et al., 2020). Despite this, coconut coir has gained global recognition for its

versatility (Coirboard, 2014).

The fibrous structure of coir makes it suitable for various industrial applications. The fibers,

typically measuring between 10 and 30 centimeters in length, are lightweight, durable, and elastic,

making them ideal for producing items such as brushes, mats, ropes, and yarn used in marine

cordage and fishnets (Raviv et al., 2008; Britannica, 2019). Coir fibers are extracted from the outer

husk of the coconut through multiple washes, which allows for sorting based on size. Brown coir

comes from mature coconuts, while a finer, smoother white coir is obtained from immature

coconuts, though the latter requires more time to process (Chisholm, 1911).

India has pioneered the production of coir bags, primarily for gardening as soil bags, owing

to the material's excellent oxygen retention properties (Schiller, 2019). Furthermore, coir's strength

positions it as a viable alternative to paper bags, which are often prone to tearing. Research into

16
the mechanical properties of coir has yielded promising findings. For instance, Monteiro et al.

(2008) investigated the mechanical performance of coir fiber/polyester composites, assessing their

structural characteristics and flexural strength through Scanning Electron Microscopy and X-ray

analysis. This research facilitates comparisons between coir composites and traditional materials.

Additionally, Gurav et al. (2003) examined the mechanical properties of paper-pulp packaging,

focusing on tensile and compressive strength, highlighting the environmental advantages of using

eco-friendly materials for packaging. By exploring the mechanical properties of coir, particularly

its strength and resilience, there is considerable potential for developing durable, eco-friendly

packaging alternatives like coir bags, which can help reduce reliance on single-use plastic

products.

Consumers’ preferences of Eco-friendly product

The widespread use of non-biodegradable plastics has severely impacted the environment,

as they take a long time to decompose. Environmental awareness has been growing for decades

(Thi & Giang, 2014), with issues like global warming, pollution, and climate change identified as

early as 1980 (Sandu, 2014). Today, these concerns are even more apparent (Polo, 2015), leading

to a rise in consumer demand for eco-friendly products, especially in developed countries. In

response, businesses have adopted green marketing strategies to cater to environmentally

conscious consumers (Jain & Kaur, 2004).

For example, 80% of Indian consumers prefer eco-friendly brands, believing they are less

harmful to the environment. The environmental damage caused by plastics, combined with

growing demand for green products, has driven efforts to ensure a cleaner ecosystem. Consumer

interest in green products is often linked to environmental values (Radesh, Ndia & Maheshwari,

17
2014). However, while Vietnamese consumers show limited interest in eco-friendly products (Thi

& Giang, 2014), Thai consumers display a growing interest, though the benefits of green products

remain unclear to many (Arttachariya, 2010).

In the Philippines, green marketing has also gained momentum (Gregorio, 2015). Yet, the rapid

expansion of shopping malls has brought environmental challenges, such as the widespread

littering of plastic bags, which contributes to pollution and health risks. While some efforts, like

oxo-biodegradable bags, have been introduced, they remain insufficient to address the problem.

Thus, promoting green consumerism requires not only businesses and government efforts but

also a focus on local consumer behavior and perceptions. Although green marketing studies exist

in the Philippines, research on eco-friendly bags in developing towns and cities is lacking. This

gap prompted the researcher to examine local consumer preferences for eco-friendly shopping

bags.

The Effectiveness of Using Eco-Friendly Bag to Support SDGs

Plastics, composed of polymers, are widely used across industries, with the packaging sector

consuming 35-40% of total plastic use and generating 59% of landfill waste (Balwada et al., 2021).

Plastic grocery bags significantly contribute to plastic waste, which accounts for 17.7% of

Indonesia's total waste, amounting to 30.88 million tons annually (Ministry of Environment, 2021).

Despite the convenience of plastic bags, they pose significant environmental challenges

throughout their lifecycle (Li et al., 2022). In 2015, Indonesia was the second-largest contributor

to ocean plastic waste, with 187.2 million tons (Jambeck et al., 2015).

In response, Indonesia launched the National Plastic Action Partnership (NPAP) in 2019 to

reduce plastic pollution. The System Change Scenario (SCS) aims to reduce plastic leakage by

18
70% through strategies like reducing plastic use, redesigning packaging, doubling waste collection

and recycling, and expanding disposal facilities (World Economic Forum, 2020). Several regions

have already banned single-use plastic bags, encouraging the use of eco-friendly alternatives made

from materials such as paper, cloth, and recycled materials (Governor of DKI Jakarta Province,

2019).

However, the environmental impact of producing eco-friendly bags is often overlooked.

Abidin et al. (2018) highlighted that factors like material, production, distribution, and disposal

must be considered when assessing these alternatives. Comparing eco-friendly materials such as

bioplastic, paper, and cotton can support Sustainable Development Goal (SDG) 13, which

promotes integrating climate change measures into national policies (Ministry of National

Development Planning/Bappenas, 2017).

19
 1.2.4 Flow of Research Process

The diagram showed a research process, outlining the steps involved in conducting a

feasibility study on coconut coir eco bags. A description of the process flow is necessary to identify

the input, process, and output of the data.

INPUT
Brainstorming

Questionnaires

Informal Interview to Customer

PROCESS
Distribution of Questionnaires
Analyze and Interpret data gathered
Evaluate Findings of the Data

OUTPUT
Feasibility Study on the Production of Coconut

Coir Bag as an Alternative for single-use plastic bags

in the Municipality of Bantayan.

20
1.3 The Problem

1.3.1 Statement of the Problem

With increasing global concerns about plastic waste pollution, there is a growing need to

explore biodegradable and sustainable materials. Coconut coir, a renewable and durable resource,

shows promise for various industries, including textiles and packaging. This study aims to evaluate

the production feasibility and market viability of eco-friendly bags made from coconut coir in the

Municipality of Bantayan Island, Cebu.

Specifically, the study seeks to address the following questions:

1. How feasible is it to scale up the production of eco-bags using coconut husk in Bantayan Island,

in terms of:

1.1 Availability of coconut husk

1.2 Cost of raw materials (coconut husk)

1.3 Sustainability of the product

2. What are the technical requirements for converting coconut coir into eco-bags, in terms of:

2.1 Labor requirements

2.2 Machinery and equipment

2.3 Production processes

21
3. What is the demand and market landscape for eco-friendly bags in the Municipality of Bantayan,

in terms of:

3.1 Tourism sector

3.2 Local retailers

3.3 Environmental awareness among consumers

4. What are the potential environmental benefits and challenges of producing and using coconut

coir eco-bags compared to conventional plastic bags, in terms of:

4.1 Biodegradability

4.2 Reduction in plastic pollution

4.3 Durability and strength

22
 1.3.2 Statement of Assumptions

This feasibility study operates under a set of assumptions that are essential for evaluating the

potential of producing eco bags from coconut coir in the Municipality of Bantayan Island. It is

important to verify these assumptions through further research and validation during the feasibility

study. The key assumptions are as follows:

Market Demand. It is assumed that there is a significant and growing demand for eco-

friendly products in Bantayan Island due to heightened environmental awareness and the local

government's initiatives to reduce plastic waste.

Community Acceptance. It is assumed that the local community will be receptive to using

coconut coir eco-bags, particularly given the local ordinance banning single-use plastics and the

promotion of sustainable alternatives.

Production Feasibility. It is assumed that the necessary technology and resources for

producing coconut coir eco-bags are readily available and can be efficiently implemented within

the existing local infrastructure.

Cost Competitiveness. It is assumed that the production cost of coconut coir eco-bags will

remain competitive with traditional plastic bags, allowing for sustainable pricing while ensuring

profitability.

Regulatory Environment. It is assumed that local government regulations and ordinances

will continue to support the reduction of single-use plastics and will facilitate the promotion and

distribution of eco-friendly products.

Environmental Impact. It is assumed that the production and widespread adoption of

coconut coir eco-bags will result in a measurable reduction in plastic waste on Bantayan Island,

contributing positively to the local ecosystem.

23
 Resource Availability. It is assumed that there is a sufficient supply of coconut husks, a

byproduct of coconut farming on the island, available for the production of eco-bags without

negatively impacting local coconut farming activities.

1.3.3 Significance of the Study

As environmental sustainability becomes a priority worldwide, exploring alternatives to

plastic is essential. This study aims to assess the potential production of coconut coir into eco-

friendly bags in Municipality of Bantayan holds significant value for several stakeholders:

Environment. Creating Eco bags using coconut waste will prevent the cluttering in the

environment and the demand or usage of traditional plastic bags in the market will be reduced.

Consumers. By offering durable and biodegradable eco-bags, consumers will have a more

sustainable option compared to single-use plastics, aligning with global trends toward eco-

conscious consumption.

Local Entrepreneurs. Entrepreneurs can tap into the rising demand for green products,

using the insights from this study to explore profitable business opportunities in the eco-bag

industry.

Coconut Plantation Owners. The project introduces an additional revenue stream by

transforming discarded coconut husks into valuable products, thereby increasing the economic

return from their harvests.

Coconut Husk Processors. Potentially improving their income and working conditions by

providing a new market for their by-products.

Tourists. Eco-bags made from coconut coir can become a unique, eco-friendly souvenir,

enhancing the tourism experience by promoting locally crafted and sustainable products.

24
 Investors. Potential investors can use this study to assess the economic viability and long-

term sustainability of supporting ventures in the eco-friendly product sector.

Environmental Advocates. By reducing plastic waste and utilizing natural materials, this

initiative contributes to environmental protection, aligning with efforts to promote greener

lifestyles and reduce pollution in coastal areas like Bantayan.

Future Researchers. The findings of this study can contribute valuable data to ongoing

research in sustainable materials, production processes, and consumer behavior related to eco-

friendly products.

25
1.4 Methodology

This section examines the research methodology, encompassing the tools and techniques used,

the setting in which the research will be conducted, and the essential resources required for data

processing to achieve research outcomes.

1.4.1 Research Environment

The research will be conducted within the Municipality of Bantayan, with a focus

specifically on the mainland barangays. Researchers will conduct surveys targeting Bantayanon

residents and retail owners as respondents, given that the company’s products cater to individuals

who are interested in purchasing coconut coir eco-friendly bags. The study will select a sample

size of respondents to gather data, which will then be analyzed to assess trends and preferences.

This feasibility study aims to evaluate the potential for introducing coconut coir as an

alternative to single-use plastic bags within the Municipality of Bantayan, situated in the northern

region of Cebu. Bantayan presents a promising market for environmentally conscious consumers,

and the study seeks to determine the viability of offering sustainable bag options. The primary

objective is to gauge the local demand for eco-friendly products and assess the feasibility of

successfully launching these alternatives within the community.

26
Figure 2: Location of the research study 27
 1.4.2 Research Respondents

The target demographic for this study consists of residents from the mainland barangays in

the Municipality of Bantayan, specifically individuals aged 18-69 years old. Bantayanon residents

are identified as the primary market for the proposed product, which is suitable for anyone seeking

durable and eco-friendly bags. The study will involve 400 respondents, determined based on the

calculated sample size.

The sample size will be determined using Slovin's formula, a widely used method for

calculating an appropriate sample size when the behavior or characteristics of a population are

unknown. This formula enables researchers to estimate a representative sample size from a larger

population, ensuring that the data collected is statistically significant and reliable.

Its formula can be obtained below:

𝑁
𝑛=
1 + 𝑁𝑒 2

Where:

n = number of samples

N = total population

e = error tolerance

a. Computation:

𝑁
𝑛=
1 + 𝑁𝑒 2

56,703
𝑛=
1 + 56,703(0.05)2

𝑛 = 397 consumers

28
 b. Computation:

𝑁
𝑛=
1 + 𝑁𝑒 2

844
𝑛=
1 + 844(0.05)2

𝑛 = 272 retailers

1.4.3 Research Instruments

The primary instrument for collecting necessary information will be survey questionnaires,

which will be distributed to the respondents. Questionnaires are an effective tool for data

collection, as they allow for structured responses to specific questions posed to participants.

In this study, the researchers will utilize survey questionnaires to gather insights into each

respondent’s perception of coconut coir as an alternative to plastic bags. The questionnaire will be

designed to capture detailed opinions and preferences, ensuring comprehensive data collection. By

using this method, the researchers aim to ensure that all relevant information regarding

respondents' views on eco-friendly alternatives is accurately recorded and analyzed.

29
 1.4.4 Research Procedures

The figure below outlines the procedures from start to end of the examinations, serving as a

guide for readers to understand the steps the researchers followed to complete the study.

Figure 3: Research Procedure

30
1.5 Definition of Terms

The following definitions of terms provide a clear understanding of key concepts and materials

relevant to this study. These terms are essential for comprehending the scope, processes, and

products involved in the research.

Coconut Husk- Coconut husks are the rough exterior shells of the coconut. In this study, it is

where coconut fibers (coconut coir) are extracted.

Coconut coir – A natural fiber extracted from the outer husk of coconuts, known for its durability,

water resistance, and biodegradability. In this study, it is the primary material used to make an eco-

friendly bag.

Single-use Plastic bag- Single-use plastic bag are plastics that are made primarily from fossil

fuel–based chemicals (petrochemicals) and are meant to be disposed of right after use. In this

study, it refers to plastic bags, particularly those made of thin material commonly used in retail or

grocery stores.

Eco bag – A reusable, sustainable alternative to single-use plastic bags, made from

environmentally friendly materials like coconut coir. In this study, it refers to the final product

which is a reusable bag made from coconut coir.

31
 CHAPTER II.

COMPANY PROFILE

2.1 Company Logo and Location

A well-designed company logo plays a crucial role in brand identity, representing the

values and mission of the business. Additionally, selecting a strategic location is essential for

operational efficiency and market accessibility. This section provides an overview of the

company’s logo design and its significance, as well as the rationale behind the chosen business

location.

2.1.1 Company Logo

Figure 4: Company logo

The “eCOIR BAGs” logo is a thoughtfully designed representation of our company’s

commitment to sustainability and eco-friendly products. The name itself, a combination of "eco"

for eco-friendly and "COIR" for the coconut coir used in production, is prominently displayed in

bold typography. The lowercase "e" emphasizes the environmental aspect, while the uppercase

"COIR" draws attention to the material, highlighting its importance in our product line. Below, the

32
word "BAGS" is subtly written in a thinner font, clearly indicating the product type while

maintaining a minimalist and clean aesthetic.

The logo’s color scheme, dominated by green and brown, reinforces the brand’s natural

and sustainable focus. The green symbolizes environmental consciousness and the earth, while the

brown highlights the organic, raw nature of coconut coir, a material directly sourced from nature.

Adding to the logo’s uniqueness is the image of coconut coir itself, integrated into the "O" of

"COIR." This clever design element visually connects the material to the name, further

emphasizing the natural and eco-friendly aspect of the product.

Encasing the design is a thin, modern rectangular frame with open corners, giving the logo

a structured yet flexible feel. This open-ended frame reflects the company’s modern approach to

sustainable solutions while symbolizing the organic and adaptable nature of the business.

Ultimately, the eCOIR BAGs logo effectively communicates the brand’s core values of

sustainability, innovation, and environmental responsibility, making it both visually appealing and

meaningful.

Location

Our production facility for eCOIR BAGs is strategically located in Barangay

Kampingganon, conveniently located near the main highway and in front of Rafaelita mini-store.

The proximity to the highway not only facilitates efficient delivery routes but also enhances

visibility for potential business partners and clients. Furthermore, Barangay Kampingganon is

characterized by its abundance of coconut trees according to the recent data of Philippine Crop

Insurance Corporation, which are vital to the production of eco-friendly coconut coir bags. This

agricultural landscape provides a steady and sustainable supply of raw materials essential for our

33
eco-friendly coconut coir bags, helping us reduce transportation costs and further our commitment

to environmental sustainability. By setting up the facility in this location, we not only benefit from

the rich natural resources but also Barangay Kampingganon is part of the Municipality of

Bantayan, which is conveniently close to local markets and partners for the business.

The physical store will be strategically located specifically situated along L. Aguilar Street,

Suba Bantayan, Cebu, near the Honda 3S Shop. This location ensures high visibility and

accessibility for both pedestrians and vehicles. Being near the local market allows the store to

attract a steady flow of customers from the bustling market activities. This prime location

combines convenience, foot traffic, and distinguishability, contributing to increased customer

engagement and sales opportunities.

Figure 5: Location of Production Facility

34
Figure 6: Location of Physical Store

35
2.2 Business Strategy Statement

To establish eCOIR BAGs as a leading eco-friendly alternative to plastic, we implement

the ECOIRS Strategy, focusing on affordability, quality, sustainability, and market

expansion.

Economic
Pricing

Strong Community-
Customer Driven
Engagement Approach

ECOIR
Strategy

Reliable
Operational
Market
Exellence
Positioning

Innovation in
Sustainability

Figure 7: Business Strategy

E – Economic Pricing. We ensure competitive and cost-effective pricing by using locally

sourced coconut coir and optimizing production process. This makes eco-friendly bags

affordable for businesses and consumers while maintaining profitability.

C – Community-Driven Development. Our business thrives by supporting local farmers,

workers, and small businesses. By partnering with local suppliers and government initiatives

36
like the Balik Basket Ordinance, we ensure that our operations contribute to the economic

growth of Bantayan while promoting sustainable practices within the community

O – Operational Excellence. We optimize manufacturing, logistics, and quality control to

ensure efficient production, durable products, and minimal waste while keeping costs low.

I – Innovation in Sustainability. We develop new designs, durable materials, and eco-

friendly production methods to improve product quality and environmental impact, reinforcing

our commitment to green alternatives.

R – Reliable Market Positioning. We aim to establish eCOIR BAGs as a trusted name in

sustainable packaging by expanding into local markets, tourism sectors, and online platforms.

Through collaborations with eco-conscious retailers, hospitality businesses, and environmental

advocates, we position our brand as a go-to solution for businesses seeking sustainable

packaging alternatives.

S – Strong Customer Engagement. We create a deeper connection with our customers

through educational campaigns, social media engagement, and eco-awareness programs. By

promoting the importance of sustainability, we encourage consumers and businesses to choose

eCOIR BAGs as a long-term eco-friendly solution, building a loyal customer base that

supports environmental change.

37
2.3 Vision, Mission, Goals, Objectives and Core Values

Vision

To be the leading producer of sustainable and eco-friendly coconut coir bags in the

Philippines, transforming waste into value while promoting environmental stewardship and

community development.

Mission

To produce eco-friendly, sustainable, and durable bags made from coconut coir, helping to

reduce plastic waste while supporting coconut farmers. We are committed to providing consumers

with high-quality alternatives to single-use plastics, promoting environmental responsibility, and

contributing to the livelihood of local communities.

Goals

1. Reduce plastic waste by replacing single-use plastic bags with sustainable coconut coir-

based alternatives.

2. Provide additional income streams for coconut farmers in Bantayan Island by utilizing

coconut husks in bag production.

3. Get our eCOIR BAG into local and international markets, making them a known product.

38
4. Collaborate with the Local Government Unit (LGU) of Bantayan Island in line with their

Ordinance No. 20 S. 2019 and the Balik Basket Bantayan program to promote

sustainable consumption practices and eco-conscious alternatives.

Objectives

1. Build a 134.81 sqm square meter facility on Bantayan Island within November to

December of 2026 to process coconut coir and produce eCOIR BAGs with cutting-edge

technology, starting at 4,650 bags per month.

2. Hire 15 locals and provide them with a 2-month training program before opening to equip

them with the skills to produce eco bags using sustainable methods.

3. Launch a marketing plan within 18 months targeting eco-conscious buyers in local tourist

areas and international markets.

4. Minimize coconut waste by 30% in the first year, aiming for a 40% reduction by the second

year.

5. Partner with local businesses and environmental organizations to support the growth and

long-term sustainability of the project.

Values

1. Sustainability. Commit to protecting the environment through eco-friendly products.

2. Quality. Deliver the best eco bags that meet customer expectations.

3. Teamwork. Work together to achieve company goals and improve the community.

4. Respect. Treat everyone fairly, regardless of background or differences.

5. Safety. Ensure a safe and healthy work environment by following regulations.

39
2.4 Critical Success Factors and Strategic Approach

Critical Success Factors (CSF) are the essential elements or actions required to ensure the

business thrives, as outlined below.

Table 1: Critical Success Factors

Critical Success Objectives Key Activities

Factors

Product Quality Our goal is to provide an eco-friendly Supplying within the Municipality
type of shopping bag alternative for of Bantayan retailers and
plastic products. We aim to reach high- consumers with a product bag that
quality products to our consumers. meets their needs and lasts for an
estimated a year.

a) To build a production space that is Ensuring a safe, clean and

a 135 square meter facility located at comfortable space and regularly
Barangay Kampingganon that maintaining and upgrading

Facilities and guarantees a spacious space perfect for production equipment.

Equipment the equipment to fit.

b) To build a physical store

c) To have a 1 Coconut Husk

Defibering Machine, 1 Coir Mattress
Hydraulic Press, 3 Industrial Walking
Foot Sewing Machine.

40
 To have a physical store that can sell Securing an accessible location
the product within the Municipality of and understanding local zoning
Location
Bantayan retailer where the center regulations.
target market is located.

To provide exceptional customer Hiring knowledgeable staff,

service to Bantayanon consumers, particularly that can implement
addressing any concerns or feedback efficient order-taking and delivery

Service in a timely and positive manner. systems, and actively seeking

feedback to continually improve
service quality.

Strategic Approach

The goal of the eCOIR strategic approach is to retain Bantayanon customer loyalty and

boost profitability, which means that product quality must always be high. Bantayan retailer

business and Bantayanon customers is the most important factor when it comes to a product's

continued effectiveness. Customers are the ones who really care about a product's longevity,

appearance, and durability because they will be using it on a daily basis. One approach is to

advertise the business through Facebook in order to use it as a means of easy access for potential

clients to learn about it and get in touch.

41
2.5 Business Model

A business model is a strategic framework that outlines how a company creates, delivers,

and captures value in the market. Its main goal is to define the approach a business takes to generate

revenue and achieve profitability, while addressing customer needs and market demands.

Figure 8: Business Model

42
2.5.1. Customer Segments

The company follows a sustainable business model that integrates environmental

responsibility with profitability. The business focuses on utilizing locally sourced, renewable

coconut coir to manufacture eco-friendly bags, targeting environmentally conscious consumers

and businesses.

Table 2:Customer Segments

Demographic Segmentation Behavioral Segmentation

Age: 18-69 years old ● Eco-conscious consumers

Gender: All Gender ● Regular users of eco bags

● Support local economies

● Commitment to sustainability

Geographic Segmentation Psychographic Segmentation

● Municipality of Bantayan ● Support local government initiatives

● Prioritize sustainability

● Commitment to a greener lifestyle

● Socially Responsible Shoppers

Demographic Segmentation. According to our surveys the target market for eCOIR

BAGs primarily includes individuals aged 18 to 69 years old, encompassing all gender. These age

43
groups are more environmentally conscious and likely to pay more for environmentally friendly

products.

Behavioral Segmentation. The target market for eco-bags made from coconut coir

includes eco-conscious consumers seeking sustainable alternatives, regular users who value

practicality and durability, sustainability advocates engaged in environmental initiatives, and those

prioritizing support for local economies. These groups reflect a commitment to sustainable living

and responsible consumption.

Geographic Segmentation. The Municipality of Bantayan actively supports reducing

single-use plastics through Ordinance No. 20 S. 2019, which enforces the Balik Basket Bantayan

Program and the Bring Your Own Bag Program, encouraging the use of reusable eco-bags. This

aligns with the Ecological Solid Waste Management Act (RA 9003), promoting waste reduction

and sustainable practices. By establishing eCOIR BAGs in Bantayan, we support these initiatives

with eco-friendly coconut coir bags, catering to the demand for sustainable products among local

residents, vendors, businesses, and tourists, while advancing efforts to ban single-use plastics.

Psychographic Segmentation. The psychographic segmentation for eCOIR BAGs targets

consumers who are committed to sustainability and supporting local government initiatives. These

individuals prioritize eco-friendly products that align with Bantayan's environmental goals,

particularly Ordinance No. 20 S. 2019. As socially responsible shoppers, they engage in programs

like Balik Basket Bantayan and Bring Your Own Bag, seeking to reduce plastic waste while

promoting sustainable development. They are also motivated to support local farmers by choosing

eco-bags made from sustainable coconut coir, creating additional income for agricultural

communities. By purchasing these bags, they fulfill their sustainability goals and uplift the local

economy.

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2.5.2. Value Proposition

A value proposition is a clear statement that outlines the unique benefits and value a

product or service provides to customers. In our eCOIR BAG business this is the reason why a

consumer should choose our product over competing options.

“eCOIR BAG is the perfect blend of sustainability and durability. Made from natural coconut

fibers sourced locally from Bantayan Island, it offers exceptional strength and moisture resistance

for heavy loads, while its biodegradable nature helps reduce your environmental impact. Choose

style, strength, and sustainability in one eco-friendly solution.”

2.5.3. Channels

To drive the success of our eco-bag venture, we recognize the importance of utilizing a

multi-faceted channel strategy to effectively reach our target markets. Below are the channels we

will employ to maximize visibility, sales, and engagement:

1. Retail Outlets. Partner with retail stores in the Municipality of Bantayan to directly reach

consumers who value sustainable products. By placing our eco-bags in stores aligned with

our commitment to environmental sustainability, we can effectively promote their unique

eco-friendly attributes.

2. Pop-up Shops. We will set up temporary pop-up shops at local markets and community

events like the annual fiesta, tourism activities, workshops, and seasonal markets. These

shops will help us engage directly with customers, boost brand visibility, build

relationships, and educate consumers on the environmental benefits of our eco-bags,

fostering awareness and loyalty.

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3. Facebook page. Researchers will use Facebook to showcase product to potential

customers. We will post engaging content, such as eco-friendly lifestyle tips and product

showcases that will help attract environmentally conscious consumers. Our Facebook page

will serve as both a promotional tool and a direct sales channel for our distributors, driving

traffic to our website and online store.

4. Local Event Sponsorships. Sponsoring local environmental events, such as coastal and

community cleanup drives in partnership with local government units and environmental

organizations, will help raise brand awareness while reinforcing our commitment to

sustainability. Our presence at these events will also enable us to engage directly with our

target market, fostering trust and strengthening our brand's reputation as a leader in eco-

friendly solutions.

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2.5.4. Customer Relationships

Building strong connections with customers allows us to better understand their needs and

preferences, ensuring satisfaction with our sustainable products. By fostering trust and open

communication, we can encourage long-term loyalty and advocacy for our eco-friendly solutions.

Ultimately, maintaining positive customer relationships is essential for promoting the adoption of

eCOIR BAGs and advancing our commitment to environmental sustainability.

Table 3: Customer Relationships

STRATEGIES DESCRIPTION

Using Facebook to showcase our coir eco bags in daily use

around Bantayan Island. This includes sharing customer

Social Media
testimonials, promoting local sustainability initiatives, and
Engagement utilizing
engaging the community through inquiries and event promotions.
Facebook
Our goal is to build a loyal, eco-conscious customer base while

reinforcing our brand's commitment to sustainability.

We gather feedback through online surveys on bag size, design,

and durability. Customer service calls and in-store interactions

Collecting
deepen our understanding of individual needs. We also monitor

Customer Feedback social media for trends. This feedback has led to improvements

like reinforced bag handles and new designs based on popular

requests.

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 We will partner with local businesses and markets on Bantayan

Island, including Bantayan Public Markets and grocery stores, to

Collaborations with
offer our eCOIR BAGs. Collaborations will feature co-branded

Local Businesses promotions, such as discounts for customers who use our eco

bags while shopping.

We will hold quarterly workshops on sustainable living, teaching

participants to reduce plastic use, recycle, and create eco-friendly

Organized Community-
products. Partnering with local businesses and environmental
Based Events
groups, we’ll sponsor events like farmers' markets and

sustainability fairs to showcase our products and promote our

mission.

Customers earn points with every purchase, redeemable for

discounts. Referrals that lead to sales give bonus points. At 500

Loyalty Programs
points, customers unlock special promotions and early access to

For repeated buyers and new products; at 1,000 points, they receive a personalized eco

partners bag or a major discount. Bulk orders from partner businesses will

earn extra points and tiered discounts, rewarding loyalty and

fostering long-term partnerships.

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2.5.5. Revenue Streams

This is a source of income a business generates from selling products or services. In our

eCOIR BAG business, we generate income through direct sales to consumers. Revenue will

primarily come from the direct sale of coir bags to individuals and retail customers in local

markets. We will sell directly to consumers through physical stores and sell bulk orders to retailers.

Tourists and residents of Bantayan Island will be key contributors, especially as the municipality

pushes for alternatives to single-use plastic bags. To boost our sales, we will utilize an e-commerce

platform and create a dedicated Facebook page to reach a wider audience, targeting eco-conscious

consumers both nationally and internationally.

2.5.6. Key Resources

Securing and managing these key resources effectively will be critical for the successful

launch and operation of the coconut coir eco bag business. Here are several key resources.

Capital. Financial resources that are essential for establishing and maintaining the

production facility, acquiring necessary equipment, and ensuring smooth day-to-day operations of

the business.

Facility. When designing a production facility for eco bags made from coconut coir fibers,

several factors must be considered to determine the ideal measurements. Here are the

recommended measurements and layout considerations for an efficient production facility:

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 Table 4: Key Resources

Needs to Consider Descriptions

Production facility will be in Barangay Kampingganon, which

is known for its abundance of coconut trees. Additionally, it is

advantageous because it is far from residential areas, minimizing

Location noise disturbances caused by the machines. The physical store

will be located in the local market, specifically front of tatak isla,

in a vacant area.

We require a 134.81 sqm facility for medium-scale production,

Facility Size providing space for equipment, workflow, storage, and future

expansion.

Fans: Install ventilators or consider exhaust fans to maintain air

quality, especially when working with adhesives and fabrics.

Ventilation and Lighting Artificial Lighting: Ensure adequate artificial lighting for all

areas, particularly in the production and storage spaces.

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 Raw Materials. The raw materials used in the production of eCOIR BAGs are carefully

selected to ensure high quality, sustainability, and environmental responsibility. The raw materials

needed in the production of eCOIR BAGs are listed below:

Table 5: Raw Materials

Raw Materials Description

A consistent supply of 5 tons of coconut husk per month is secured

Coconut Husk through contracts with local coconut farmers within Bantayan

Island.

This adhesive is mixed with water to create a sprayable solution

Adhesive Glue that is applied to the coir fibers before compressing them into the

desired shape for the bags.

Biodegradable and cost-effective solution designed for sewing eco-

Heavy-duty Thread friendly bags, particularly those made from coconut coir fibers. The

thread is designed to withstand fraying, ensuring longevity and

reliability in the finished product.

Woven fabric strip made from natural cotton fibers, commonly used

Cotton Webbing as straps, handles, or reinforcements in products like bags due to its

strength, flexibility, and eco-friendliness.

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 Machines. The integration of these machines in our production facility is vital for

optimizing workflow, ensuring the high quality of our coconut coir eco bags, reducing waste, and

maintaining a strong commitment to sustainability in every aspect of our operations.

Table 6: Machines

Machines Descriptions

Used to extract coir fibers from coconut husks. This machine

Coconut Husk Defibering separates the tough outer husk from the inner coir fibers, which

Machine are then cleaned and processed for use in eco bag production.

Coir Mattress Hydraulic Used to compress coconut coir fibers into mats or other forms for

Press further processing.

Built to handle thick and tough materials like coconut coir fabric.

Industrial Sewing Machine It produces strong, uniform seams that ensure the durability and

longevity of the eco bags, even under heavy use.

Spraying Machine Designed to evenly apply adhesive onto coconut coir fibers,

ensuring strong bonding and durability of the final coir canvas.

Drying Machine An essential equipment used to effectively dry the coir canvas

after the pressing process, enhancing its strength, durability, and

resistance to moisture.

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 Manpower. Our eCOIR BAGs production facility is designed to operate with a lean but

highly efficient team, with a total of 15 personnels, ensuring streamlined workflows and optimized

performance at every stage of the process. The following key personnel are integral to our business

operations.

Table 7: Manpower

Manpower Job Description

For overseeing the entire inventory system, ensuring that raw

General Manager (1) materials such as coconut coir are accurately tracked and stored,

and that stock levels are maintained to meet production demands.

Manages daily business activities, improves processes, solves

Operation Specialist (1) issues, and ensures everything runs efficiently to meet company

goals.

Manages essential tasks like processing permits, handling

Administrative Officer/ paperwork, and ensuring compliance with local regulations.

Human Resource (1) Handles employee records, recruitment, payroll coordination, and

workplace policies to maintain an efficient and organized work

environment.

Production Staff For coir shredding, sewing, and bag production, allowing for

(4) Operators, (5) Tailor, effective task management and quality maintenance.

(1) Cutter

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 Responsible for transporting raw materials, finished products, and

supplies safely and efficiently. Ensures timely deliveries to

Driver (1) customers, suppliers, and business partners while following traffic

rules and safety regulations

In physical store, receptionist assists with inquiries, manages

Receptionist (1) appointments or queues, answers phone calls, and ensures a

welcoming and organized front desk area to enhance the customer

experience.

Regulatory and Compliance. By following these regulatory and compliance standards,

the eCOIR BAGs business ensures it operates legally, ethically, and sustainably while protecting

the environment and maintaining high-quality production standards.

Table 7: Regulatory and Compliance

Regulatory and Compliance Descriptions

To obtain a Tax Identification Number (TIN), maintain proper

Bureau of Internal Revenue financial records, ensure legal operation, and avoid penalties for

(BIR) Registration non-compliance with Philippine tax regulations.

Occupational Safety and Compliance with OSHA regulations not only ensures the well-

Health Administration being of workers but also helps avoid potential legal liabilities

(OSHA) Guidelines associated with workplace accidents or unsafe conditions.

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Local Business License and This includes obtaining specific operating permits that grant the

Operating Permits eCOIR BAGs business permission to conduct manufacturing

activities within the municipality

Ensure that the harvesting of coconut husks follows

Environmental Permits environmentally responsible practices, protecting local

ecosystems and promoting long-term sustainability.

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2.5.7. Key Activities

The production of eCOIR BAGs involves several key activities that ensure the success of

the business, from sourcing raw materials to reaching the target market. Each stage in the process

plays a crucial role in creating a sustainable and eco-friendly product that supports local farmers

and addresses the growing demand for green alternatives to single-use plastic bags. Below are the

following key activities.

Table 8: Key Activities

Activities Description

In sourcing raw materials, we assess suppliers based on their

ability to provide high-quality materials, consistency in

Raw Material supply, and competitive pricing. We will build strong

Procurement relationships with selected suppliers to ensure reliable

procurement.

The core activity involves processing coconut coir into eco-

bags. Here is the production process for the eCOIR BAG;

Collection of
Defibering Weighting
Coconut Husk

Production and
Spraying with Pressing the
Manufacturing Drying the Mat
adhesive Coir Mat

Sewing and
Packaging and
Cutting the mat Forming into
Distribution
eCOIR Bag

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 To effectively sell and distribute eCOIR BAGs, we will use a

mix of retail partnerships, direct sales, and efficient delivery.

Sales and Distribution
We’ll collaborate with local retailers and to showcase our

bags. Clear agreements will be made regarding pricing and

order sizes, with discounts offered for bulk purchases. A

Facebook page will help us promote our products and connect

with buyers directly.

For direct sales, we’ll organize community events and

workshops focused on sustainability, offering our bags for

sale. We’ll offer flexible options for wholesale customers and

maintain regular communication to meet their needs.

We will promote eCOIR BAGs through targeted Facebook

ads showcasing the environmental benefits, durability, and

support for local farmers. Regular posts will feature customer

testimonials and behind-the-scenes content to engage our

audience. We’ll set up pop-up shops at local markets and eco-

Marketing and Branding
events, allowing customers to see and learn about our

products firsthand. Additionally, we’ll partner with local

businesses like eco-resorts and grocery stores to offer our

bags in their product lines, boosting brand visibility.

Educational workshops and community talks will highlight

57
 the benefits of eco-friendly products and position our brand

as a leader in sustainability.

We will hold quarterly workshops in Bantayan Island to

educate the community about the environmental benefits of

Community Engagement and
eCOIR BAGs and plastic waste reduction. These sessions will
Workshops
take place at schools, community centers and public spaces,

showcasing how our bags are made and their sustainability

impact. We will also sponsor local cleanup drives, partnering

with the local government. During these events, participants

will use our eco-bags, promoting our brand while

demonstrating their durability and eco-friendliness.

We will continuously improve our eCOIR BAGs by

enhancing the design, strength, and sustainability of the

product. Beyond the bags, we’ll research new uses for

coconut by-products, such as creating biodegradable

packaging materials or developing coconut-based accessories

like wallets or totes. This will help diversify our product line
Research and Development
while staying true to our sustainability goals. Regular

customer feedback will be collected to identify areas for

improvement and introduce new products that meet evolving

consumer demands.

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2.5.8. Key Partners

For a successful coconut coir eco bag business in Bantayan Island, identifying and

collaborating with key partners is essential. Here’s a detailed look at potential key partners:

Table 9: Key Partners

Partners Description

We will establish partnerships with well-known local coconut

farmers, such as those in Barangay Kabangbang and Barangay

Kampingganon, areas recognized for their abundant coconut

supply. These partnerships will ensure a consistent source of

high-quality coir while supporting the local agricultural

Local Coconut Farmers of
community. Additionally, we will expand our sourcing efforts
Bantayan Island
beyond these areas, collaborating with coconut farmers and

processors throughout Bantayan Island, ensuring we have

access to a wider network of suppliers while promoting

sustainable growth across the island.

Collaborating retailers within the municipality of Bantayan such

as will enhance our product's visibility among potential

Retailers and
customers. We can also offer bulk-order discounts to larger

Distributors retailers and wholesalers.

59
 They will serve as our key partner in printing the logo for our

eCOIR BAGs and our tarpaulins. By collaborating with them,

Styled with Shimmer we aim to create eye-catching promotional materials that

enhance our brand visibility and resonate with our target market.

Sells different adhesives, including eco-friendly and industrial-

Glue, Cotton Webbing,
grade options like water-based adhesives that can bond natural
Thread, and Supplier
fibers like coconut coir.
(Bantayan Hardware Cebu)

Bantayan Island’s LGUs are key partners as they enforce the

plastic ban, directly aligning with our product’s purpose as an

eco-friendly alternative. Their support ensures our coconut coir

bags are promoted as a solution in local markets affected by

Bantayan Local
these regulations. By collaborating with LGUs, we can access
Government Units (LGUs)
permits more easily, participate in government-run eco-friendly

programs, and gain visibility through LGU-backed campaigns

that promote sustainable products.

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2.5.9. Cost Structure

By effectively managing these costs and activities, the business will be able to maintain

profitability and scale operations over time. Here’s the breakdown of the cost that the business will

cover.

Table 10: Cost Structure

Cost Description

The primary cost is the purchase of coconut husk and

Raw Material Costs additional materials needed for bag production, such as cotton

webbing for handles, threads and glue adhesive.

Salaries for the production team, designers, marketing staff,

and management. Labor costs will be influenced by the local

Labor Costs availability of skilled workers and training requirements for

handling coconut coir.

Expenses related to efficient processing equipment (e.g.,

Manufacturing and extractors, sewing machines) and facility maintenance,

Equipment Costs because investing in efficient machinery can reduce

production costs over time.

Budget for promotional activities, social media advertising,

Marketing and Sales Costs product launching and sales distribution. This also includes the

cost of participating in local events and sponsorships.

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 Expenses related to the transportation of raw materials and

Logistics and Distribution finished products, including shipping costs for wholesale and

Costs online orders.

Costs associated with managing the business, including office

Administrative Costs supplies, utilities, legal fees, and any necessary permits or

certifications for sustainable products.

Ongoing investment in improving the quality of the eco-bags,

Research and Development testing new materials, and creating innovative designs will

incur R&D expenses.

2.6. Competitive Position and the Competitors

eCOIR BAGs holds a strong competitive position as the only coconut coir bag

manufacturer in Bantayan Island. Unlike common eco-bags made from canvas, recycled plastics,

or paper, eCOIR BAGs offers a unique product that is biodegradable, durable, and locally sourced.

Its strong alignment with the island’s sustainability policies further enhances its market potential.

However, competition in the eco-bag industry remains a challenge, with established suppliers

already providing alternative reusable bags in Bantayan.

While there are no direct competitors producing coconut coir bags in Bantayan Island, the

business faces indirect competition from local suppliers and stores that provide other types of eco-

friendly bags. Stella Maris and Julius Store and other 39 retailers of bantayan, all based in Bantayan

Island that regularly supply retailers and consumers in Municipality of Bantayan such as reusable

bags eco bags, paper bags and plastics. These alternatives are already familiar to local businesses

62
and consumers, making it essential for eCOIR BAGs to differentiate itself through durability,

sustainability, and competitive pricing.

To stay ahead, eCOIR BAGs will focus on brand recognition, product innovation, and

strong partnerships with local businesses and government agencies. By emphasizing the

unique benefits of coconut coir bags such as their biodegradability and support for the local

coconut industry. The business aims to build customer loyalty and establish itself as a trusted

supplier of eco-friendly bags in Bantayan Island.

2.7 Five Forces Model

To understand the competitive landscape of eCOIR BAGs, Porter’s Five Forces Model is

used to analyze key industry dynamics. This framework helps evaluate the potential challenges

and opportunities within the eco-friendly bag market. By assessing factors such as competition,

supplier and buyer power, threats of new entrants, and substitutes, eCOIR BAGs can develop

strategic measures to strengthen its market position and ensure long-term sustainability.

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 The Rivalry
Among
Existing
Competition

Bargaining Potential
Powers of Entry of New
Buyers Competition
FIVE
FORCES
MODEL

Entry of
Bargaining
Substitue
Powers of
Product
Suppliers

Figure 9: Five Force Model

2.7.1. Rivalry among Existing Competition

Currently, there are no direct competitors producing coconut coir eco-bags in Bantayan

Island, which presents a unique opportunity for us. However, the eco-bag industry is witnessing a

significant shift towards sustainable options. Our potential competitors include manufacturers of

other eco-friendly bags, such as those made from canvas, recycled plastics, and paper. These

companies compete on factors like price, quality, and the environmental benefits of their products.

While the rivalry isn't intense at the moment, we need to monitor how established brands may

respond to the introduction of coconut coir bags in our local market.

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2.7.2. Potential Entry of New Competition

The barriers to entering the eco-bag market are relatively low, meaning new competitors

could emerge easily. Since coconut coir bags require specific raw materials, like coconut husks,

and some knowledge about the production, it is feasible for other entrepreneurs in our area to enter

the market. With the rising demand for eco-friendly products, especially given the growing

sustainability movement, we should prepare for the possibility that others will seek to capitalize

on this trend. Establishing our brand early will be crucial for building a loyal customer base.

2.7.3. Entry of Substitute Products

We must also consider substitutes for our coconut coir eco-bags. Alternatives such as jute,

hemp, cotton bags, and reusable bags made from recycled materials or biodegradable polymers are

already on the market. Each of these options has its own strengths, particularly regarding cost and

production processes. To differentiate ourselves, we need to effectively communicate the unique

benefits of coconut coir bags, including their durability, eco-friendliness, and the support they

provide to local coconut farmers. Highlighting these qualities can help persuade customers to

choose our product over other options.

2.7.4. Bargaining Power of Suppliers

Our primary raw material which is coconut coir, comes from coconut processing, which gives

our suppliers moderate bargaining power. In Bantayan Island, where coconuts are 77% abundant,

suppliers may have less leverage when supply is high. However, we must be aware that

fluctuations in coconut harvests or increased demand for coir could elevate supplier power. To

manage this risk, we should consider forming long-term partnerships or contracts with outside the

island which Tubod, Medellin sand Pinamungajan suppliers. This approach would help us secure

stable pricing and ensure a reliable supply of materials while also fostering LGU ties.

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2.7.5 Bargaining Power of Buyers

Buyers in our market, both consumers and retailers, exhibit moderate to high bargaining

power because they have numerous eco-bag alternatives to choose from. As people become more

environmentally conscious, they also tend to be price-sensitive. Retailers might seek lower prices

or better quality to meet their needs. To win over these buyers, we should focus on maintaining

competitive pricing and ensuring that our bags are durable and of high quality. Additionally, we

can emphasize the environmental benefits of our coconut coir bags, which align with the values of

eco-conscious consumers. Engaging with the local community through education and outreach can

also help build brand loyalty and encourage consumers to choose our product.

2.8 SCOT Analysis

This section explains how to guarantee product quality while addressing various challenges

encountered in the business. To support the business, this approach examines Strengths,

Challenges, Opportunities, and Threats.

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 Figure 10: SCOT Analysis

Strengths

Eco-friendly - eCOIR BAGs are made from natural coconut fibers, reducing environmental

impact compared to plastic alternatives.

Long-term Viability - The durability of coir as a material ensures 6-12 months that these

bags have a long lifespan, specifically contributing to sustainability.

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 Durable- Coir fibers are tough and strong, making eCOIR BAGs resistant to use, ideal for

long term use compared to synthetic materials which lasted only 6-7 weeks.

Unique and Flexible- Can be used for various purposes and stands out compared to other

bags like storing any type of things to think such as everyday uses, packaging applications,

travel uses, and storage use.

Challenges

Supplier Consistency - Ensuring consistent supplies of coir in the production process can

be difficult, particularly the season is not giving with natural fibers.

High Initial Production Costs- Starting a production facility or scaling up operations can

be costly due to equipment, labor, and sourcing raw materials.

Moisture Issue- Coconut coir can absorb water, which might weaken the bag

Opportunities

Increase Demand-The market for environmentally friendly eCOIR BAGs is predicted to

grow as more people become conscious of environmental issues see Table 61- Available

Market for eCOIR BAG.

Subsidies and Incentives- Governments and organizations may offer financial support

for sustainable products, reducing production costs or increasing profits.

Cebu Distribution- Expanding into region 7 markets can open new revenue streams and

grow the business.

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Threats

Rising Coconut Prices-Fluctuations in coconut prices due to demand or supply issues

can increase production costs.

Strong Competition from Plastic Alternatives-Despite environmental drawbacks,

plastic bags are still widely used due to lower costs and convenience.

Consumer Preference- Changing consumer habits from plastic to coir bags might take

time, and customers may not be willing to switch without incentives.

Environmental Conditions- Natural disasters, especially in coconut-growing regions,

can disrupt supply chains, damage crops, and halt production.

2.9 Action Plan

Creating a successful action plan is essential to the success of any business. Planning

and implementing this strategy should be done carefully, as failing to do so can lead to disastrous

consequences. A good starting point for businesses is conducting a feasibility study, developing

effective marketing strategies, and improving operations in order to meet customer needs. It is also

important to strive for Kaizen by providing quality service at all times.

Here is the organization’s plan to keep the business going and maintain customer value.

Table 11: Action Plan

RESPONSIBLE
YEAR ACTIVITIES SPECIFIC OUTPUT REMARKS
DEPARTMENT

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 Before starting our
business, we need
to understand what
Business
2025 Conduct survey Research team the customer wants.
Development
We will ensure that
they are satisfied
with our product.
Producing the actual
number of bags. 1. 1. Research team
Start of the The number of
Hiring 2. Training 3. 2. Human
2026 business demands must be
Establishing a business Resource 3.
operation fulfilled.
location 4. Create Marketing
marketing strategy
Provide them with
quality product
1. Determine the client every time and
Establish a evaluation 2. Produce promoting new
reputation for innovative advertising 1. Marketing 2. feature to the
2027
eCOIR BAG strategy 3. Raise the Engineering product. The more
Business quality of services 4. customers who feel
Engage a time study satisfied with our
product, the more
they will return.
Develop new

Business product offering to

1. Launch new
expansion and increase the scale of
advertisements 2.
2028 development Marketing operations for the
Develop new business
eCOIR BAG company to
location
Business generate more
money.

70
 1. Conduct time study in
Make a partnership
order to improve the
Continuous with companies that
transportation models 2.
2029 improvement of Marketing sell eco-friendly
Make partnership 3.
the business products and
Increase customer
sustainable products
retention

2.10 Roadmap

Figure 11: Road Map

A roadmap is a strategic plan that describes a goal or desired outcome as well as the

necessary actions or milestones to achieve it. The first three years are the company’s short-term

development plan, followed by the medium and long-term plans. Developing and planning the

business from the start is critical to providing quality products to customers. The next year, as the

71
business begins its operation, the proponents expect to provide durable and sustainable product,

which will be essential in helping establish the product image in the eye of the users and business

retailers. In the third and fourth years, the company will seek for ways to improve our sustainable

product and establish a new one that fully cater the customer’s needs. Finally, in its fifth year, the

company will not be satisfied with simply being an established business; instead, it will continue

to strive to provide the best quality product it can for customers while also seeking continuous

improvement in all areas to ensure that its customers receive high-quality products.

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 CHAPTER III.

MARKETING ASPECT

This chapter will help to know the marketing aspect of the business. It describes the market

situations where the product can be identified through demand and supply analysis. The marketing

aspects will cover the following: product concepts, target market, population information, and

sample size, summary of survey results, market study results, marketing mix decisions, and life

cycle strategies.

3.1 Product Concepts

The idea behind the product is that customers will choose it if it offers high quality,

appealing features, and reliable performance. A strong product concept is essential to meet

customer needs and expectations, ensuring it stands out in the market. However, a product isn't

successful on its own; it relies on effective marketing, distribution, and customer support to

enhance its appeal and build loyalty. By gathering customer feedback and continually improving,

businesses can ensure their product not only meets but exceeds expectations, leading to greater

satisfaction and long-term success.

3.1.1. Name and Uses of Product/s

The proposed product is named "eCOIR BAG", an eco-friendly and sustainable alternative to

single-use plastic bags, made from coconut coir. Designed to align with Bantayan Island's ordinance

banning plastics, the eCOIR BAG offers a durable, reusable, and biodegradable solution for both locals

and tourists. These versatile bags are ideal for various uses, including grocery shopping, beach trips,

and daily errands, combining functionality with environmental responsibility. By utilizing coconut

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coir, a natural by-product of Bantayan's abundant coconut industry. The eCOIR BAG reduces

agricultural waste while promoting a cleaner, greener lifestyle. This innovative product not only

supports the island's environmental goals but also encourages consumers to contribute to sustainable

living practices.

3.1.2. Market Preferences on Product Design

The "eCOIR BAG" is designed to be marketed as an eco-friendly, durable, and versatile

alternative to single-use plastic bags. The product is crafted from coconut coir, offering a biodegradable

and sustainable solution to waste management while adhering to Bantayan Island's ordinance banning

plastics. To appeal to a broad range of eco-conscious consumers, the eCOIR BAG’s design focuses on

functionality, and affordability

Ease of Handling and Portability. The eCOIR BAG will feature ergonomic handles that

ensure comfort during use, even when carrying heavy items. Its lightweight yet durable structure makes

it easy to store when not in use, enhancing its practicality for everyday use.

Durability and Strength. The bag will be reinforced about a maximum of 15-20 kilogram

with high-quality stitching and treated coir fibers to ensure reliability for carrying various weights,

from groceries to heavier goods. This durability will position the eCOIR BAG as a trusted choice for

consumers who value reusable and long-lasting products.

Affordability. Production processes will focus on high efficiency, acquire local resources and

trained labor to keep manufacturing costs low. This enables the eCOIR BAG to remain affordable

while still meeting quality standards.

The eCOIR BAG will be positioned as Bantayan Island’s premium eco-friendly bag, promoting

sustainability while supporting the local economy. Its affordability ensures accessibility for all income

levels, and its quality guarantees long-term satisfaction. By choosing the eCOIR BAG, customers

74
actively contribute to reducing plastic waste and supporting a greener future, making it the trusted, go-

to bag on the island.

3.1.3 Pictorial Sketch

The pictorial sketch shows the product from a specific angle or viewpoint. It provides a 3D

image that helps understand the shape of the product and how it looks from that direction.

Figure 12: Pictorial Sketch (small eCOIR)

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Figure 13: Pictorial Sketch (Medium eCOIR)

Figure 14: Pictorial Sketch (Large eCOIR)

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3.1.6 Features and Benefits

The features and benefits of the eCOIR BAG demonstrate how it meets customer needs

while supporting sustainability. Here’s the breakdown of its key qualities, such as durability and

water resistance, which provide practical use and promote eco-friendly goals.

Table 12: Features of eCOIR

Features Descriptions

Made from 99% coconut coir, a biodegradable and renewable

Eco-Friendly Material resource. Unlike plastic, coir naturally decomposes without

harmful residues, supporting efforts to reduce plastic pollution.

Coconut coir fibers are strong and elastic, providing high tensile

High Durability and strength and tear resistance. eCOIR BAGs withstand heavy

Strength loads approximately 20kg, making them reliable for everyday

use and reducing the need for replacements.

All coir is sourced from local farmers on Bantayan Island,

Locally Sourced Materials supporting the local economy and minimizing carbon emissions

and Sustainability from transportation. This approach creates an income stream for

farmers by utilizing what would otherwise be waste.

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Table 13: Benefits of eCOIR

Benefits Descriptions

eCOIR BAGs provide a sustainable alternative to single-use plastic

Significant Reduction bags, helping reduce the 500 billion plastic bags used globally each

in Plastic Waste year. Each use contributes to less plastic entering the waste stream.

By utilizing coconut coir, eCOIR BAGs create new revenue for local

Additional Income for farmers, turning waste into valuable resources that enhance the local

Farmers agricultural economy.

The production process involves local artisans, generating jobs and

Job Creation promoting skills development in eco-friendly product manufacturing.

eCOIR BAGs are designed for long-term use, saving consumers

Cost-Effective and money by reducing the need for cheap, disposable bags. Their

Durable durability supports sustainable habits.

Suitable for various uses, eCOIR BAGs can carry groceries, books,

Versatile and Practical beach items, or serve as eco-friendly gifts, enhancing their practical

value.

By featuring local materials and artisans, eCOIR BAGs foster pride

Promotes Local in Bantayan Island’s cultural heritage and serve as unique,

Identity sustainable souvenirs for tourists.

78
3.1.7 Characteristics of the Product

Coconut coir eco bags eCOIR BAGS are a sustainable alternative to single-use plastic bags,

crafted from natural fibers derived from the husk of coconuts. These bags are biodegradable and

compostable, breaking down naturally over time and significantly reducing landfill waste, which

aligns perfectly with Bantayan municipality's environmental initiatives. The robust construction

of coir fibers provides excellent durability and strength, enabling these bags to carry heavy items

without tearing, while their inherent water resistance allows for the transport of moist items.

Additionally, eCOIR BAGs offer versatility, making them suitable for various uses—from

shopping and groceries to beach trips and storage.

The aesthetic appeal of these bags, characterized by their earthy tones and rustic texture,

attracts eco-conscious consumers, and they can be customized for local businesses to enhance

branding. Beyond their environmental benefits, eCOIR BAGs support the local economy by

creating jobs in manufacturing and marketing, engaging local artisans, and fostering a sense of

community pride. They also align with Bantayan’s Balik Basket program and local ordinances

aimed at reducing plastic use, making them an attractive option for municipalities focused on

sustainability. While the initial cost may be higher than that of single-use plastics, the long-term

durability encourages reuse, leading to cost savings for consumers. Overall, these eco-bags

represent a multifaceted solution that benefits both the environment and the local community,

enhancing the feasibility and attractiveness of this eco-friendly initiative.

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3.2 Target Market

The target market of eCOIR BAG includes residents and local businesses within the

Municipality of Bantayan, where Ordinance No. 20, Series of 2019, bans single-use plastic bags

and promotes sustainable alternatives under the "Balik Basket Bantayan" program. This

regulation creates a strong demand for eco-friendly bags, making eCOIR BAGs a viable alternative

for local consumers and businesses. The market includes environmentally conscious individuals,

local retailers, grocery stores, and market vendors. Consumers aged 18-69, who are more inclined

to adopt sustainable habits based of 2024 data from LGU Bantayan. Below is the key demographic.

Table 14: Target Market

Target Market Total Populations

Residents (aged of 18-69) 68,211

Local Retailers (Businesses) 844

TOTAL 69,055

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3.2.1 Catchment Area

The physical store is situated along L. Aguilar Street, Suba Bantayan, Cebu, near the Honda

3S Shop. Conveniently located beside the road, the store is easily accessible to customers while

avoiding the town's crowded areas. It serves as the main outlet for displaying and selling eCOIR

BAGs.

Figure 15: Top Island View of Business Location with Bantayan Island

Figure 16: Location of Physical Store

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3.2.2 Market Segmentation

Market segmentation is dividing the customer base into groups with similar traits to make

it easier for businesses to meet their needs. Since every customer is unique, businesses use

segmentation to focus on specific groups rather than trying to serve everyone. This helps

businesses better understand and target their clients.

There are four types of market segmentation for our business-to-customers (B2C) market:

geographic segmentation, demographic segmentation, psychographic segmentation, and

behavioral segmentation

• Age: 18-69 • Municipality of

years old Bantayan
• Gender: Male
and Female

Demographic Geographic
Segmentation Segmentation

Psychographic Behavioral
Segmentation Segmentation
• Eco-conscoius • Consumers that
consumers purchase or
• Consumers who uses eco
have friendly bags
comittment to when shopping
the local for groceries
ordinance.

Figure 17: Market Segmentation for consumers

82
3.2.3 Buying Decision Behavior

A consumer’s actions or behaviors when purchasing an eCOIR BAG reflect their buying

behavior. Before making a decision, buyers consider various factors and invest time in researching

sustainable and eco-friendly options. Understanding consumer purchasing patterns is essential for

effective marketing. Eco-conscious individuals, environmentally responsible businesses, and

sustainable fashion advocates are the primary customers who evaluate eCOIR BAGs based on key

factors:

• Price. eCOIR BAGS appeal to cost-conscious consumers who value sustainability.

Offering a range of price of Php 98-105. Ensures accessibility for different customer

segments.

• Sustainability. Buyers prioritize materials that are eco-friendly, biodegradable, and

ethically sourced. Ensuring that eCOIR BAGS are made from coconut coir and other

sustainable components increases their appeal to environmentally aware consumers.

• Convenience. Streamlining the purchasing process through Bantayan local stores, online

platforms, and Cebu eco-friendly markets enhances accessibility. Direct delivery options

to businesses and individual buyers add value.

• Design and Functionality. Well-crafted, and functional eCOIR BAGS attract customers

looking for both aesthetics and utility. A durable design encourages trust in product quality

while promoting a sustainable lifestyle.

3.2.4 Buyer Decision Process

The buyer decision process is the series of steps customers go through before, during, and

after buying a product. It’s a way to weigh the pros and cons of different choices. This process has

83
five steps: need recognition, information search, evaluation of alternatives, purchase decision, and

post-purchase behavior. Understanding these steps helps businesses create better strategies to meet

customers’ needs.

Figure 18: Buyer Decision process

3.2.5 Positioning Map

A positioning map, or perceptual map, is a simple chart that shows how consumers see

products or brands compared to their competitors. It usually uses two important factors that matter

to customers and helps businesses find ways to stand out and gain an edge over competitors.

84
 Figure 19: Positioning Map

The positioning map illustrates that eCOIR BAG is placed in the high-quality, high-price

segment, signifying its premium value and durability as an eco-friendly alternative. In contrast,

Stella Maris and Jullius Store and other 39 business are positioned in the low-price, moderate-

quality category, indicating they offer more budget-friendly but less durable options. This

positioning highlights eCOIR BAG as the ideal choice for consumers prioritizing sustainability

and quality, aligning with Bantayan’s environmental regulations and the shift toward eco-

conscious shopping habits.

3.2.6 Catchment Area

The eCOIR BAG business is strategically situated in Barangay Kampingganon, Bantayan,

Cebu, an area chosen for its potential to foster long-term partnerships and trust with wholesale

85
buyers. Establishing a strong presence here is crucial for meeting the goals and expectations of our

customers:

Location for Future Growth. eCOIR BAGs will be established in Barangay

Kampingganon, a centrally located area just 8 km from Bantayan. This location not only provides

a peaceful and green environment conducive to business operations but also offers expansive land

for future growth. The surrounding natural landscape promotes a sustainable image, aligning with

our eco-friendly mission.

Figure 20: Top Island View of Business Location with Bantayan Island

86
Figure 21: Business Location

87
3.2.7 Description of Industry

The eco-friendly packaging industry is experiencing rapid growth due to increasing

consumer awareness, environmental concerns, and stricter government regulations on single-use

plastics. Sustainable alternatives, such as coconut coir-based products, are gaining traction as

businesses and consumers seek greener solutions.

Recent Statistics

• The global sustainable packaging market was valued at approximately $272.93 billion

in 2023 and is projected to reach $448.53 billion by 2030, growing at a CAGR of 7.6%

(Grand View Research, 2023).

• In the Philippines, the implementation of the Extended Producer Responsibility (EPR)

Act of 2022 mandates businesses to manage their plastic packaging waste, promoting

the adoption of sustainable packaging solutions (Republic Act No. 11898, 2022).

• Bantayan Island, where eCOIR BAGs will operate, has implemented local ordinances

banning single-use plastics, increasing the demand for sustainable alternatives

(Municipality of Bantayan, 2021).

Key Players in the Industry

• EcoNest Philippines. Specializes in biodegradable and compostable packaging

solutions.

• Nature’s Legacy. Produces sustainable materials derived from agro-industrial waste.

• Greenpak PH. Supplies eco-friendly bags and food packaging products.

• eCOIR BAGs. A new entrant focusing on coconut coir-based reusable bags, offering

durable, locally sourced, and sustainable alternatives.

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Frequency of Product Use

• Daily Use. Consumers and retailers use eco-bags for shopping and carrying goods,

reducing reliance on plastic.

• Business & Corporate Adoption. Retailers, supermarkets, and the tourism sector

increasingly integrate eco-friendly bags into their operations to comply with

environmental policies and consumer preferences.

• Government & Local Government Units (LGUs). Regularly procure eco-friendly

bags for distribution in sustainability programs and environmental compliance.

89
3.2.8 Segmentation Basis

Market segmentation is dividing the customer base into groups with similar traits to make

it easier for businesses to meet their needs. Since every customer is unique, businesses use

segmentation to focus on specific groups rather than trying to serve everyone. This helps

businesses better understand and target their clients.

There are four types of market segmentation for our business-to-business market:

geographic segmentation, demographic segmentation, psychographic segmentation, and

behavioral segmentation.

90
 • Age: 18-69 • Municipality of
years old Bantayan
• Gender: Male
and Female

Demographic Geographic
Segmentation Segmentation

Psychographic Behavioral
Segmentation Segmentation
• Businesses • Business
looking for entities that
reusable bags purchase bulk
• Businesses who packaging
have
comittment to
the local
ordinance.

Figure 22: Market Segmentation for Retailers

3.2.9 Operating Characteristics

Table 15: Operating Characteristics

Offers Retails Store Wholesalers Manufacturers

Bulk Discounts 10% 10% 10%

Delivery Services On time Free delivery On time Free Limited

services single time a delivery services
day within Bantayan two times a day
only

Wholesale Price Not applicable 10% Not applicable

Discounts (Partners)

91
 Wholesale Price Not applicable 10% Not applicable
Discounts (Non-
Partners)

Partnered Services Out of schedule Out of schedule Not applicable

emergency deliveries emergency
deliveries

Long Term
Commitment The business aims to The business aims The business aims to
last and grow over time. to last and grow last and grow over
over time. time.

Durable bag and

ease in carrying the Convenience and Convenience and Convenience and
product comfort in carrying the comfort in carrying comfort in carrying
product the product the product

Awareness for Durable design and Durable design Durable design and
sustainability eco-friendly materials and eco-friendly eco-friendly materials
materials

The table shows the services that the eCOIR BAG business provides to different groups of

target markets, like retail stores, wholesalers, and potential manufacturers. It includes bulk

discounts, free delivery options within Bantayan only, special partner discounts, durable and easy-

to-carry bags, and support for sustainability. The services are adjusted based on the needs of each

group. Those with higher demand or stronger partnership.

3.2.10 Purchasing Process and Approaches

Since the business focuses on both business-to-business and business-to-customer

relationships, it will aim to provide personalized services to meet the needs of each market. The

business approaches are important to ensure the eCOIR BAGs are effectively introduced and

promoted to both retailers and customers, with the goal of building strong relationships and closing

92
deals. The following are the steps in introducing and promoting the eCOIR BAGs and services to

close the deals:

Purchasing to supplier

Figure 23: Purchasing to Supplier

Purchasing of customer to the company

Figure 24: Purchasing of Customers to company

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3.3 Population Information

The term "population information" encompasses all relevant data gathered from the entire

target demographic, which is essential for researchers in making informed analyses. For this

feasibility study on introducing coconut coir eco bags as an alternative to single-use plastic bags

in the Municipality of Bantayan, the focus is on individuals who are likely to adopt sustainable

practices.

Specifically, the data provided covers the 2020 population with age range 18 to 69 years

old. Its population as determined by the 2020 Census was 47,444 (PhilAtlas). For the year 2024

the projected population would be 68,211. This demographic is critical as they represent the

majority of the municipality's active consumers, decision-makers, and environmentally conscious

individuals, making them a key market for eco-friendly solutions like coir bags.

3.4 Sample Size

In a feasibility study, determining the appropriate sample size depends on the study's

objectives and research goals. Larger sample sizes generally yield more reliable and accurate

results. However, the cost of collecting data from a larger sample must also be considered.

For this study, which examines the potential of coconut coir eco bags as an alternative to

single-use plastic bags in the Municipality of Bantayan, the researchers used Slovin’s formula to

calculate an appropriate sample size. This formula is particularly useful when the researchers have

limited information about the population's behavior, allowing them to derive a representative

sample for analysis. The formula can be obtained below:

94
 𝑁
𝑛=
1 + 𝑁𝑒 2
Where:

n = number of samples

N = total population

e = error tolerance

Computation for consumers:

𝑁
𝑛=
1 + 𝑁𝑒 2
68,211
𝑛=
1 + 68,211(0.05)2
𝒏 = 𝟑𝟗𝟖

The population for registered business retailers in the Municipality of Bantayan has a total

of 844 (Municipality of Bantayan LGU, 2024).

Computation for business owners:

𝑁
𝑛=
1 + 𝑁𝑒 2

844
𝑛=
1 + 844(0.05)2

𝒏 = 𝟐𝟕𝟐

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3.5 Summary of Survey results

This section presents the results of comprehensive data collection and analysis conducted

to understand the target market for the business. The survey, created using Google Forms, consists

of two sections: the demographic profile of respondents and their interest in and capability to use

eCOIR BAGs eco-friendly bags made from coconut fibers.

Section 1: Demographic Information

Table 16: Age of Respondents

Age Frequency Percentage

18-24 22 6%

25-31 56 14%

32-38 89 22%

39-45 110 27%

46-52 65 16%

53-59 46 12%

60-66 9 2%

67-70 3 1%

Grand Total 400 100%

The survey results indicate that the majority of respondents (49%) fall within the 32-45 age

group, suggesting that middle-aged adults are the most engaged demographic in the market. The

46-52 age group (16%) also represents a significant portion, indicating a strong potential customer

base with purchasing power. Meanwhile, younger adults (18-31 years old, 20%) make up a

growing segment, possibly driven by eco-consciousness and sustainability trends. The older age

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groups (53+ years old, 15%) show lower engagement, with the least representation in the 67-70

age range (1%), suggesting they may be less inclined to adopt new sustainable products.

Gender of the Respondents

Table 17: Respondents Gender

Gender Frequency Percentage

Female 302 75.50%

Male 94 23.50%

Prefer not to say 4 1%

Grand Total 400 100%

The data presented illustrates the gender distribution of respondents. Notably, the majority

of respondents are female, comprising 75.5% of the sample. Male respondents represent 23.5%,

while a small minority (1%) opted not to disclose their gender

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Monthly Income of Respondents

Table 18: Monthly Income

Monthly Average Income Frequency Percentage

5,001 – 10,000 80 20%

10,001 – 15,000 124 31%

15,001 – 20,000 100 25%

20,001 – 30,000 58 14.50%

30,001 – 40,000 30 7.50%

40,001 – 50,000 8 2%

Above 50,000 0 0%

Grand Total 400 100%

Based on the provided data, the majority of the respondents in the sample have a monthly

income ranging from Php 10,001 to 15,000, indicating a potential target market with moderate

purchasing power. Additionally, there is a significant portion of respondents with higher incomes

Php 30,000 and above that presents an opportunity for targeting customers with greater spending

capabilities.

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Section 2: Awareness and Interest in eCOIR BAG

1. How frequent do you go shopping for groceries or other household items?

Table 19: Question 1

Question no.1 Frequency Percentage

Once a Week 162 40.50%

Bi-Monthly 92 23%

Thrice a Week 54 13.50%

Twice a Week 47 11.80%

Daily 29 7.20%

Monthly 16 4%

Grand Total 400 100%

The survey shows that most respondents shop regularly, with 40.5% shopping weekly and

23% bi-monthly. This consistent shopping frequency highlights the need for reliable bags,

presenting a strong opportunity for eco-friendly options like eCOIR BAGs, which could cater to

consumers' frequent shopping habits.

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2. Which store do you usually buy groceries from?

Table 20: Question 2

Question no.2 Frequency Percentage

Bantayan Local Market 228 57%

Hypermarket 94 23.50%

Sari-Sari Store 74 18.50%

Drug Store 4 1%

Grand Total 400 100%

The survey results show that the majority of respondents (57%) prefer buying groceries

from the Bantayan Local Market, followed by 23.5% shopping at hypermarkets and 18.5% at sari-

sari stores. Only a small percentage (1%) buy groceries at drug stores. This indicates a strong

preference for local markets, which offer convenience and possibly better access to fresh or

regional products. The popularity of the Bantayan Local Market suggests that there is potential for

eco-friendly products like eCOIR BAGs to be introduced in these community-based shopping

venues, where consumers are likely to appreciate practical, sustainable alternatives.

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3. What products would you typically buy?

Table 21: Question 3

Question no.3 Frequency Percentage

Grains and Bakery (bread, rice, etc.) 355 88.80%

Meat and Seafood (pork, chicken, fish) 354 88.50%

Fresh products (Fruits and Veges) 309 77.30%

Canned and Packaged Goods 286 71.50%

Household and Personal Care 250 62.50%

Condiments and Spices 221 55.30%

Frozen Foods 216 54%

Beverages 120 30%

Others 2 0.30%

The survey shows that meat and seafood (88.5%), grains and bakery items (88.8%), and

fresh products (77.3%) are the most commonly purchased items. Canned goods (71.5%) and

household/personal care items (62.5%) are also frequently bought, while frozen foods, condiments,

and beverages are less common. This variety in purchasing habits suggests that eCOIR BAGs

could be well-suited for grocery shopping, particularly for fresh and packaged products.

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4. What time do you usually shop for groceries?

Table 22: Question 4

Question no.4 Frequency Percentage

9:00 AM - 12:00 PM 224 56%

3:00 PM - 6:00 PM 90 22.60%

6:00 AM - 9:00 AM 44 11%

12:00 PM - 3:00 PM 15 3.70%

6:00 PM - 9:00 PM 15 3.70%

I don't have a specific time 12 3%

9:00 PM - 12:00 AM 0 0%

Grand Total 400 100%

This question was asked to determine the preferred purchasing time for the business to

operate. As shown in the table above, most respondents interested in availing of the services prefer

to shop for groceries between 9:00 AM and 12:00 PM (56%), while the least preferred time for

purchasing is between 9:00 PM and 12:00 AM (0%). This suggests that targeting grocery shopping

during mid-morning to afternoon hours may be effective for promoting eco-friendly products like

eCOIR BAGs, aligning with the most popular shopping times.

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5. Do you currently use eco-friendly bags?

Table 23: Question 5

Question no.5 Frequency Percentage

Yes 379 94.80%

No 21 5.20%

Grand Total 400 100%

The survey indicates that a significant majority of respondents (94.8%) have used eco-

friendly bags before, while only 5.2% have not. This high usage rate reflects strong familiarity

with and potential openness to eco-friendly alternatives, suggesting that products like eCOIR

BAGs could be readily accepted in the market.

6. What type/s of eco-friendly bag do you usually use when shopping? (check as many as

applicable)

Table 24: Question 6

Question no.6 Frequency Percentage

Reusable Cloth Bag 362 95.50%

Paper Bag 229 60.40%

Tote Bag 111 29.30%

Jute Bag 16 5%

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 The survey results reveal that cloth bags are the most popular eco-friendly option, used by

95.5% of respondents. Paper bags follow at 60.4%, while tote bags are used by 29.3%. Recycled

PET and jute bags are the least used, with only a few respondents choosing them. This indicates a

strong market for eco-friendly bags and opportunities to introduce eCOIR BAGs as a sustainable

alternative.

7. What size of eco bag do you currently purchase or prefer?

Table 25: Question 7

Question no.7 Frequency Percentage

Medium 230 61%

Large 92 24%

Small 59 15%

Grand Total 379 100%

This question was asked to determine the available market of eco-friendly bags for different

sizes, it help us analyze existing market trends and preferences. The survey shows that 61% of the

respondents prefer to use medium sized eco-bag, 24% prefer to use large size eco bag and the

remaining 15% prefer to use small size eco-bag.

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8. Where do you typically purchase eco bags?

Table 26: Question 8

Question no.8 Frequency Percentage

Local Markets 262 69.30%

Grocery Stores 102 27%

Local Artisans 13 3.40%

Souvenir Stores 1 0.30%

Online (Shopee, TikTok, Lazada) 0 0%

Grand Total 379 100%

This question was asked to understand where consumers typically purchase eco bags,

helping us determine the best locations for our physical store. The survey reveals that most

respondents (69.3%) typically purchase eco bags from local markets, followed by 27% from

grocery stores. A smaller percentage buys from local artisans (3.4%) or souvenir stores (0.3%).

Notably, no respondents reported purchasing eco bags online. This suggests that introducing

eCOIR BAGs in these venues could align well with consumer shopping habits.

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9. How often do you purchase bags for shopping?

Table 27: Question 9

Question no.9 Frequency Percentage

Bi-Monthly 116 30.6%

Only when I go shopping 114 30.1%

Once a Week 87 23.00%

Monthly 27 7.1%

Twice a Week 21 5.50%

Thrice a Week 11 2.90%

Daily 3 .80%

Grand Total 379 100%

This question was asked to understand how often consumers purchase bags for shopping,

which helps us assess the potential demand for eco-friendly bags. Out of 379 respondents, the most

common frequency is Bi-Monthly (30.6%, 116 respondents), followed closely by purchasing only

when going shopping (30.1%, 114 respondents). The least common response is Daily (0.8%, 3

respondents). This indicates that most consumers buy bags on a less frequent basis, with bi-

monthly and occasional purchases being the most common.

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10. How many eco bags do you purchase every time you go shopping?

Table 28: Question 10

Question no.10 Frequency Percentage

1 eco bag 204 53.80%

2 eco bags 114 30.10%

3 eco bags 42 11.10%

4 eco bags 6 1.60%

more than 4 eco bags 13 3.40%

Grand Total 379 100%

We asked this question to understand how many eco bags consumers typically purchase

per shopping trip, which helps us gauge demand and guide our product offerings. Out of 379

respondents, the majority (53.8%) purchase 1 eco bag, followed by 2 eco bags (30.1%). Fewer

respondents purchase 3 (11.1%), 4 (1.6%), or more than 4 (3.4%) eco bags. This indicates that

most consumers tend to buy one or two eco bags per shopping.

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11. What is your main reason for using an eco-bag?

Table 29: Question 11

Question no.11 Frequency Percentage

Reusability 152 40.20%

Large Capacity 113 29.80%

Durability 57 15.10%

Environmentally friendly 49 13%

Comfortable Handle 5 1.10%

Lightweight 3 0.80%

Appealing Design 0 0%

Grand Total 379 100%

This question was asked to understand the key motivations behind consumers' use of eco-

bags, which helps us identify the most valued features and tailor eco-friendly products, like eCOIR

BAGs, to better meet consumer preferences. Out of 379 respondents, the survey results show that

the main reason for using eco-bags is reusability, with 40.2% (152 respondents). The second most

common reason is large capacity, chosen by 29.8% (113 respondents). The least common reasons

are lightweight (0.8%, 3 respondents) and appealing design (0%, 0 respondents).

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12. If you do not use eco-friendly bags for shopping, what do you use then?

Table 30: Question 12

Question no.12 Frequency Percentage

Single use plastic bags 34 79.10%

Synthetic fiber net bags 5 11.60%

PVC bag 1 2.30%

I only use the secondary packaging

that the store provides for free 3 7%

Grand Total 43 100%

The survey results show that the majority of respondents who do not use eco-friendly bags

for shopping rely on single-use plastic bags, with 79.1% (34 respondents) selecting this option.

The least common alternative is using PVC bags, chosen by only 2.3% (1 respondent). This

highlights a strong preference for single-use plastic bags, while other alternatives, such as PVC

bags, are less frequently used.

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13. What is your reason for not using eco bags for shopping?

Table 31: Question 13

Question no.13 Frequency Percentage

I prefer to use plastic 19 43.20%

I found it expensive 11 25.00%

I just go with whatever is available 9 22.70%

I don't want to spend extra money just

for a shopping bag 4 9.10%

Grand Total 43 100%

The survey results reveal the main reasons why respondents do not use eco bags for

shopping. The largest group, 43.2% (19 respondents), indicated that they prefer to use plastic bags,

while the least common reason, cited by 9.1% (4 respondents), is not wanting to spend extra money

on a shopping bag. These findings highlight that preference for plastic and cost concerns are

significant barriers to adopting eco bags.

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14. Are you aware of the environmental impact caused by plastic waste?

Table 32: Question 14

Question no.14 Frequency Percentage

Yes 388 97.00%

No 12 3.00%

Grand Total 400 100%

The survey results show that a vast majority of respondents (97%) are aware of the

environmental impact caused by plastic waste, with 388 individuals acknowledging its effects.

Only a small percentage, 3% (12 respondents), are unaware of this issue. This suggests a high level

of environmental awareness among the respondents, indicating that there is a strong understanding

of the negative consequences of plastic waste and likely a greater openness to eco-friendly

alternatives

15. Are you aware of a bag made from coconut fiber (coconut coir bag)?

Table 33: Question 15

Question no.15 Frequency Percentage

Yes 232 57.3%

No 168 42.7%

Grand Total 400 100%

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 The survey result shows that 57.3% of respondents (232 individuals) are aware of coconut

coir bags, while 42.7% (168 individuals) are not familiar with them. This indicates that while a

majority of consumers have some knowledge of coconut coir bags, there is still a significant

portion of the population who are not aware of this eco-friendly alternative. This presents an

opportunity to increase awareness and promote the benefits of coconut coir bags to a broader

audience.

16. If yes, where have you heard/seen it?

Table 34: Question 16

Question no.16 Frequency Percentage

Social media 68 41.70%

Local Market 59 23.80%

Television 51 16.60%

From friend/someone I know 49 15.80%

Other region 5 2.1%

Grand Total 232 100%

The survey shows that the top two sources where respondents have heard or seen coconut

coir bags are social media (41.7%) and local markets (23.8%). The least common sources are other

regions (2.1%) and word of mouth from friends or acquaintances (15.8%). These findings suggest

that while social media and local markets play a dominant role in raising awareness, there is still

room for broader distribution channels to increase visibility.

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17. If an eco-bag made from coconut fiber such as the coconut coir bag is available in

Bantayan, would you be willing

Table 35: Question 17

Question no.17 Frequency Percentage

Yes 348 86.5%

No 52 13.5%

Grand Total 400 100%

Question 17 of the survey aimed to determine the respondents' willingness to purchase an

eCOIR BAG made from coconut fiber if available. Out of the 400 participants, the results indicated

varying levels of interest. 348 respondents (86.5%) expressed their willingness to utilize ECOIR

BAGs if available. The majority of the respondents, as highlighted above, showed a positive

inclination towards using the service, indicating a potentially significant market opportunity.

18. If eco-friendly coconut coir bags are available, how likely are you to choose them over

other eco-friendly alternatives (e.g., reusable cotton bag, jute, paper bags, etc.)?

Table 36: Question 18

Question no.6 Frequency Percentage

Very likely 174 50%

Somewhat likely 123 35.30%

Neutral 51 14.7%

Unlikely 0 0%

Grand Total 348 100%

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 The survey results show that 50% of respondents are very likely to choose eco-friendly

coconut coir bags over other alternatives, while 35.3% are somewhat likely. Only 14.7% are

neutral, with no respondents indicating they are unlikely to choose them. This suggests strong

interest in coconut coir bags as a preferred eco-friendly option.

19. How much are you willing to spend to buy a bag made from coconut coir?

Table 37: Question 19

Question no.6 Frequency Percentage

Php 100 - Php 200 321 92.20%

Php 201 - Php 300 27 7.80%

Php 301 - Php 400 0 0.00%

Grand Total 348 100%

The survey results show that 92.20% of respondents prefer a price range of Php 100–Php

200, indicating a strong preference for affordable products. Meanwhile, 7.80% favor the Php 201–

Php 300 range, suggesting a smaller segment willing to spend more. These insights will guide our

pricing decisions.

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Summary of Survey results (Business to Business)

1. What type of business do you manage?

Table 38: Question 1 (Types of Business)

Types Frequency Percentage

Sari - Sari Store 136 50%
Grocery Store 61 23%
Market Vendor 50 18%
Clothing Store 16 6%
Others 9 3%
Total 272 100%

Among the types of businesses, Sari-Sari Stores received the highest number of responses

with 136 (50%), indicating their dominance in the local community. The second-highest response

was for Grocery Stores, with 61 (23%), which also reflects a strong demand for essential goods.

The lowest response was recorded for the others category, with only 9 (3%), suggesting minimal

representation of other types of businesses outside the main categories.

2. Years of experience in handling this type of business.

Table 39: Question 2 (Frequency)

Years Frequency Percentage

1-5 Years 98 36%
6-10 Years 127 47%
11-15 Years 14 5%
16-20 Years 10 4%
More than 20 Years 23 8%
Total 272 100%

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 For years of experience, the highest response came from those with 6–10 years of experience,

accounting for 127 (47%) of the total, indicating that most business owners have a moderate level

of experience. The second-highest response was from those with 1–5 years of experience, with

98 (36%), showing a significant number of relatively new entrepreneurs. The lowest response was

for those with 16–20 years of experience, with only 10 (4%), suggesting fewer long-term

operators in the area. These findings highlight the dominance of specific business types and a

concentration of moderately experienced business owners in the community.

3. What types of bags do you currently use for your retail operation/business?

Table 40: Question 3 (Types of bag use)

Types Frequency Percentage

Paper Bags/Poyo 124 46%
Plastic Bags 96 35%
Eco Bags 47 17%
Sako Bag 5 2%
Total 272 100%

The analysis of the table highlights key insights into the types of bags in retail

operation/business. Paper Bags/Puyo emerged as the most commonly used bag type, with 124

responses (46%), indicating a preference for this option over others. Plastic Bags followed

closely with 96 responses (35%), while Sako Bags were the least used, with only 5 responses

(2%). This suggests a trend toward sustainable alternatives, as paper bags appear to be more

popular than plastic bags.

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 4. Based on your answers in no. 3, how frequent do you purchase bags for your retail
operations?

Table 41: Question 4 (Plastic Bags)

Plastic Bags Frequency Percentage

Weekly 45 47%
Daily 23 24%
Bi-Monthly 15 16%
Monthly 13 13%
Quarterly (in years) 0 0%
Total 96 100%

In terms of purchasing frequency, Plastic Bags are most commonly purchased on a weekly

basis, accounting for 45 responses (47%), followed by daily purchases with 23 responses (24%).

Monthly purchases were less frequent, with 13 responses (13%), and quarterly purchases were not

reported at all.

Table 42: Paper Bag

Paper Bag/Puyo Frequency Percentage

Weekly 57 46%
Daily 34 27%
Bi-Monthly 12 10%
Monthly 21 17%
Quarterly (in years) 0 0%
Total 124 100%

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 Similarly, for Paper Bags/Puyo, weekly purchases dominated, with 57 responses (46%),

followed by daily purchases with 34 responses (27%). Bi-monthly purchases were the least

frequent, with only 12 responses (10%), and no quarterly purchases were reported.

Table 43: Eco bag

Eco Bag Frequency Percentage

Bi-Monthly 16 34%
Monthly 14 30%
Weekly 11 13%
Daily 6 23%
Quarterly (in years) 0 0%
Total 47 100%

For eco bags, bi-monthly purchases are the most common, with 16 responses (34%),

followed by monthly purchases, which account for 14 responses (30%). Daily purchases rank third

with 6 responses (23%), while weekly purchases are the least frequent, with 11 responses (13%).

No quarterly purchases were recorded. These results indicate that eco bags are typically purchased

on a bi-monthly or monthly basis, suggesting that they are used less frequently compared to other

bag types.

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 5. Based on your answers in no.4, for each order, how many packs of bags will you
purchase?

Table 44: Question 5- Number of purchase (Plastic Bag)

Plastic Bags Frequency Percentage

Less than 100 packs 28 29%
101-300 packs 49 51%
301 – 500 packs 19 20%
501-700 packs 0 0%
701-900 packs 0 0%
900 bags and above 0 0%
Total 96 100%

The data provides insights into the purchasing patterns for different types of bags in terms

of the number of packs bought per order. For plastic bags, the majority of respondents, 49 (51%),

purchase between 101–300 bags per order, followed by 28 respondents (29%) who purchase less

than 100 bags. A smaller group, 19 respondents (20%), buys 301–500 bags, while no respondents

reported buying more than 500 bags per order. This suggests that retailers tend to purchase plastic

bags in moderate quantities.

Table 45: Number of purchase (Paper Bag)

Paper Bags (Puyo) Frequency Percentage

Less than 100 bags 47 38%
101-300 bags 63 50%
301 – 500 bags 14 12%
501-700 bags 0 0%
701-900 bags 0 0%
900 bags and above 0 0%
Total 124 100%

119
 For paper bags (Puyo), the most common purchase size is also 101–300 bags, with 63

respondents (50%) choosing this option. Additionally, 47 respondents (38%) purchase less than

100 bags, while 14 respondents (12%) buy 301–500 bags. Similar to plastic bags, no respondents

purchase more than 500 paper bags per order, reflecting a preference for small to moderate

quantities.

Table 46: Number of purchase (Eco bag Bag)

Eco Bags Frequency Percentage

Less than 100 bags 29 64%
101-300 bags 11 25%
301 – 500 bags 7 11%
501-700 bags 0 0%
701-900 bags 0 0%
900 bags and above 0 0%
Total 47 100%

For eco bags, the majority of respondents, 29 (64%), purchase less than 100 bags per order.

This is followed by 11 respondents (25%) who buy 101–300 bags and 7 respondents (11%) who

purchase 301–500 bags. No respondents reported buying more than 500 eco bags per order. This

indicates that eco bags are typically purchased in smaller quantities compared to plastic and paper

bags.

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 6. What factors influence your purchasing decisions the most when selecting bags?
(You may select more than one)

Table 47: Question 6 (Factors for Purchasing Decision)

Factors Frequency Percentage

Durability 246 26%
Customer Preferences 213 22%
Environmental Impact 201 21%
Cost 168 17%
Quality 78 8%
Supplier Reliability 56 6%

In Table 47, Durability emerges as the most significant factor influencing purchasing

decisions, with 246 responses (26%). This indicates that consumers place high value on products

that are long-lasting and can withstand regular use, likely because durability reduces the need for

frequent replacements, offering better value for money. The second-highest factor is Customer

Preferences, with 213 responses (22%), reflecting the importance of catering to specific customer

tastes and needs. This suggests that businesses need to focus on understanding their target market

to provide products that align with consumer expectations. Environmental Impact follows

closely with 201 responses (21%), showing that a growing number of consumers are becoming

environmentally conscious and consider sustainability when making purchasing decisions. On the

other hand, Supplier Reliability is the least influential factor, with 56 responses (6%), indicating

that while reliability matters, consumers prioritize product attributes like durability and

environmental impact over supplier-related concerns

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 7. What company or establishment is your supplier of bags?

Table 48: Question 7 (Name of Supplier)

Suppliers Frequency Percentage

Stella Maris Store 136 50%
Julius Store 112 41%
Direct Supplier 24 9%
Total 272 100%

In table 48, the Stella Maris Store is the leading supplier, chosen by 136 respondents

(50%), making it the most preferred source for bags. Its high ranking could be attributed to

factors such as proximity, product variety, or competitive pricing. The Julius Store, selected

by 112 respondents (41%), also plays a significant role, indicating that it is a strong

competitor in the market. Direct Suppliers are the least utilized option, with only 24 responses

(9%), suggesting that consumers may find retail stores more convenient or reliable than

sourcing directly from manufacturers or wholesalers. This preference highlights the need for

direct suppliers to enhance their visibility, accessibility, or value proposition to attract more

customers.

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 8. Are you familiar with bags made from coconut fiber (coconut coir bag)?

Table 49: Question 8 (Familiarity with coconut coir bag)

Categories Frequency Percentage

Yes 239 86%
No 33 14%
Total 272 100%

In table 49, the data reveals that 86% of respondents (239 individuals) are familiar with

bags made from coconut fiber (coconut coir bags), reflecting widespread awareness of these

sustainable alternatives. This high level of familiarity is promising for businesses promoting

eco-friendly products, as it indicates a receptive market. However, 14% of respondents (33

individuals) are still unfamiliar with coconut coir bags, pointing to an opportunity for

businesses to conduct marketing campaigns or educational initiatives to raise awareness and

expand their customer base.

9. Would you be willing to purchase a coconut coir eco bag in bulk for 5% discounts?

Table 50: Question 9 (Willingness to purchase)

Categories Frequency Percentage

Yes 168 62%
No 104 38%
Total 272 100%

In Question no. 9, 62% of respondents (168 individuals) indicated their willingness to

purchase coconut coir eco bags in bulk if offered a 5% discount. This highlights that the majority

of consumers are motivated by even small price reductions, emphasizing the importance of bulk

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discounts as an effective strategy to drive sales. However, 38% of respondents (104 individuals)

were not willing to purchase in bulk despite the discount, suggesting that factors such as storage

constraints, lower demand, or budget limitations might influence their decision.

10. What is your preferred minimum order quantity of coconut coir eco bags?

Table 51: Question 10 (Minimum order)

Categories Frequency Percentage

50 Bags 67 40%
100 Bags 52 31%
150 Bags 29 17%
200 Bags 7 4%
250 Bags 10 6%
300 Bags 3 2%
Total 168 100%

In Table 51, the preferred minimum order quantity reveals that 40% of respondents (67

individuals) prefer orders below 50 bags. This indicates that most customers are likely small-scale

buyers or individuals with limited storage capacity or modest demand. Meanwhile, 31% of

respondents (52 individuals) opted of 100 bags, suggesting a segment of buyers who may

represent small businesses or organizations requiring bulk quantities. Notably, others selected the

categories of 150 Bags and above, responses lower frequency, which implies that there is little to

no demand for extremely large-scale purchases within this consumer group.

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 11. What qualities do you value most in a supplier of coconut coir eco bags? (You may

select more than one)

Table 52: Question 11 (Supplier Qualities)

Categories Frequency Percentage

Product Quality 154 35.81%
Commitment to sustainability 103 23.95%
Customer Service 72 16.74%
Competitive Pricing 67 15.58%
Delivery Speed 34 7.91%

In terms of supplier qualities, product quality emerged as the top priority, with 154

responses (35.31%), indicating that customers place the highest importance on receiving high-

quality products. Following this, commitment to sustainability ranked second with 103

responses (23.95%), reflecting the growing demand for environmentally responsible

practices. On the other hand, delivery speed was the least prioritized quality, garnering only

34 responses (7.91%), suggesting that consumers are willing to wait longer for deliveries if

other key factors are met.

12. What features would you like to see in coconut coir eco bags?
Table 53: Question 12: Coir bag Features

Categories Frequency Percentage

Reusability 245 26.72%
Durability 234 25.52%
Spacious 209 22.79%
Customizable Design 142 15.49%
Various Sizes 87 9.49%

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 When it comes to desired features in coconut coir eco bags, reusability was the most preferred,

with 245 responses (26.72%), highlighting the importance of sustainability and functionality.

Close behind, durability received 234 responses (25.52%), showcasing a strong preference for

products that are long-lasting. However, various sizes were the least significant feature, with only

87 responses (9.49%), indicating that customers prioritize the eco-friendly and practical aspects

of the product over having multiple size options.

13. What challenges do you foresee in transitioning to coconut coir eco bags? (Select all that
applies)

Table 54: Question 13 (Challenges)

Categories Frequency Percentage

Price Concerns 234 30.67%
Quality Assurance 201 26.34%
Availability 198 25.94%
Lack of Customer Demand 130 17.04%

The data highlights the challenges in transitioning to coconut coir eco bags. The most

significant challenge identified is price concerns, with 234 responses (30.67%), indicating that cost

is a major barrier for businesses considering the switch. Quality assurance follows as the second

most significant concern, with 201 responses (26.34%), suggesting that businesses are wary of the

reliability and durability of these eco bags. Availability ranks third, with 198 responses (25.94%),

reflecting potential issues with sourcing or maintaining a steady supply. Lastly, the lack of

customer demand is the least significant challenge, with 130 responses (17.04%), suggesting that

while demand may be a concern, it is not as critical as the other factors.

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3.6 Market Study Results

The market study's results are organized to provide a comprehensive analysis of both the

qualitative and quantitative demand for the business. This approach ensures a clear understanding

of customer preferences, behaviors, and the overall market potential, allowing for data-driven

decision-making.

3.6.1 Quantitative Demand Analysis

Quantitative Demand Analysis focuses on evaluating numerical data to measure the

market's potential. It includes assessing the frequency of customer purchases, the volume of

products demanded, and the price customers are willing to pay. This analysis provides concrete

metrics, such as the number of bags sold or the average spending per customer, to estimate overall

demand and inform business strategies.

127
Question. How frequent do you go shopping for groceries or other household items?

The survey shows that most respondents shop regularly, with 40.5% shopping weekly and

23% bi-monthly. This consistent shopping frequency highlights the need for reliable bags,

presenting a strong opportunity for eco-friendly options like eCOIR BAGs, which could cater to

consumers' frequent shopping habits.

Table 55: Demand analysis Question 1

Question no.1 Frequency Percentage

Daily 29 7.20%

Thrice a Week 54 13.50%

Twice a Week 47 11.80%

Once a Week 162 40.50%

Bi-Monthly 92 23%

Monthly 16 4%

Grand Total 400 100%

128
Question. How often do you purchase bags for shopping?

This question was asked to understand how often consumers purchase bags for shopping,

which helps us assess the potential demand for eco-friendly bags. Out of 379 respondents, the most

common frequency is Bi-Monthly (30.6%, 116 respondents), followed closely by purchasing only

when going shopping (30.1%, 114 respondents). The least common response is Daily (0.8%, 3

respondents). This indicates that most consumers buy bags on a less frequent basis, with bi-

monthly and occasional purchases being the most common.

Table 56: Demand Analysis Question 8

Question no.8 Frequency Percentage

Daily 3 .80%

Thrice a Week 11 2.90%

Twice a Week 21 5.50%

Once a Week 87 23.00%

Bi-Monthly 116 30.6%

Monthly 27 7.1%

Only when I go shopping 114 30.1%

Grand Total 379 100%

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3.6.1.1 Demand Analysis

Mankiw (2021) explains demand analysis as a study of consumer behavior that evaluates

how changes in price, income, or market conditions affect the quantity of a good or service that

consumers are willing to purchase. This analysis helps businesses predict future sales and adjust

production and marketing strategies accordingly.

Demand analysis is a research process aimed at assessing the demand for a product or

service within a specific market, particularly focusing on customer preferences and purchasing

behaviors. In the context of eCOIR BAGs, a sustainable alternative made from coconut fiber to

replace single-use plastics in Bantayan Island, demand analysis plays a crucial role in several

business decisions, such as forecasting sales, determining pricing strategies, planning marketing

efforts, making manufacturing decisions, and considering expansion opportunities.

For a new business like eCOIR BAGs, conducting a demand analysis is vital to determine

whether there is sufficient demand for the product. Additionally, by gathering information about

competitor numbers, their market size, and the industry growth, it becomes possible to assess

whether the business can generate enough profit to sustain and promote its operations.

Demand Assumptions for eCOIR BAGs:

1. No change in population size and composition. It is assumed that the target market's

population size in Bantayan Island will remain steady over the next 5 years, maintaining

the current demand for eco-friendly products.

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2. No change in customer preference. It is assumed that consumer preferences for

sustainable alternatives to single-use plastics, like eCOIR BAGs, will remain constant

throughout the next 5 years, continuing to favor eco-friendly products over plastic bags.

3. No significant change in local government regulations. It is assumed that the local

government in Bantayan Island will continue to enforce the ban on single-use plastics,

which will maintain the demand for alternative products like eCOIR BAGs.

Demand Components for eCOIR BAGs:

1. Frequency of purchasing the bags. The frequency with which customers purchase

eCOIR BAGs will remain relatively stable. Customers' buying behavior, such as

purchasing these eco-friendly bags for regular use in place of plastic bags, is expected to

follow a consistent pattern over time.

2. Willingness to purchase the bags: The willingness of customers in Bantayan Island to

embrace eCOIR BAGs as a practical and sustainable alternative to single-use plastics is

expected to stay strong throughout the years. Customers’ willingness to pay for eco-

friendly, locally sourced bags is expected to remain consistent, driven by their awareness

of environmental issues and support for sustainable practices.

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3.6.1.2 Growth Rate

Growth rate refers to the percentage change of a specific variable within a specific time

period, given a certain context. The table below shows the total projected 5-year population of

residents in the Municipality of Bantayan, which is the potential customers of the business for the

next 5 years.

Table 57: Growth Rate (Consumer)

Year Population Change Growth Rate

2020 63,786
2021 64,914 1,128 1.77%
2022 65,996 1,082 1.67%
2023 67,078 1,082 1.64%
2024 68,211 1,133 1.69%
2025 69,364 1,153 1.70%
2026 70,543 1,179 1.70%
2027 71,742 1,199 1.70%
2028 72,962 1,220 1.70%
2029 74202 1,240 1.70%

Formula in getting population growth rate is:

Vpresent−Vpast
Growth Rate (2029) = x 100
Vpast

Sample Computation:
74,202−72,962
Growth Rate = x 100
72,962

Growth Rate (2029) = 1.70%

The table above show that the population growth rate. The average growth rate for the

Municipality of Bantayan is roughly 1.70% from the previous population. This suggest that the

population of the target market is increasing. Furthermore, With the following information stated

132
above, market demand was derived based on the ensuing survey of the proponents considering the

growth on population. The table above shows the growth rate of business entities for the year 2020-

2029. The data from the year 2020-2024 was based from the given data of the Municipality of

Bantayan. The population for 2025-2029 was projected.

Growth Rate of Business Entities

This section shows the population growth rate of each business to help the company

determine the growth rate of the target market namely the retailers of Municipality of Bantayan.

The population growth for five years is shown below.

Table 58: Growth Rate (Business Entities)

Year Population Change Growth Rate

2020 750
2021 772 22 2.93%
2022 796 24 3.11%
2023 819 23 2.98%
2024 844 25 3.05%
2025 869 25 2.96%
2026 895 26 2.99%
2027 922 27 3.02%
2028 950 28 3.04%
2029 979 29 3.05%

Formula in getting population growth rate is:

Vpresent−Vpast
Growth Rate (2029) = x 100
Vpast

Sample Computation:
979−950
Growth Rate = x 100
950

Growth Rate (2029) = 3.05%

133
 With the following information stated above, market demand was derived based on the

ensuing survey of the proponents considering the growth on population. The table above shows

the growth rate of business entities for the year 2020-2029. The data from the year 2020-2024 was

based from the given data of the Municipality of Bantayan. The population for 2025-2029 was

projected.

Growth Rate of Both Consumers and Business Entities

The population growth rate, which is commonly stated as a percentage, is used to estimate

how many people are increasing in every year passed by. It uses the forecasting approach to

represent numerically how a population is expected to grow.

Table 59: Municipality of Bantayan, Consumers and Business Population Growth Rate
(consuming and selling shopping bag product)

Year Population Change Growth Rate

2020 64,536
2021 65,686 1,150 1.78%
2022 66,792 1,106 1.68%
2023 67,897 1,105 1.65%
2024 69,055 1,158 1.71%
2025 70,233 1,178 1.71%
2026 71,438 1,205 1.72%
2027 72,664 1,226 1.72%
2028 73,912 1,248 1.72%
2029 75,181 1,269 1.72%
Average Growth Rate 1.71%

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Formula in getting population growth rate is:

Vpresent−Vpast
Growth Rate (2029) = x 100
Vpast

Sample Computation:
69,190−69,161
Growth Rate = x 100
950

Growth Rate (2029) = 1.71%

The table above shows the increase of combined consumer and business population in

Bantayan that can be used by the researchers to determine the target market for the total number

of both consumer and business over the years.

135
3.6.1.3 Decision Tree

Figure 25: Decision Tree

136
3.6.1.4 Potential Market

A potential market refers to the group of consumers who may develop an interest in a

product or service based on their needs, preferences, and purchasing power. These are individuals

or businesses that do not yet buy the product but could become customers in the future.

Table 60: Potential Market (Business to Consumer)

Potential Market
If eco bag made from coconut fiber
such as the coconut coir bag is available
in Bantayan, would you be willing to
purchase it? Potential
Product Population
Market

Yes No

86.50% 13.50% 86.50%

eCOIR BAG 68,211

59,002 9,209 59,002

The survey shows that the majority of consumers have used eco-friendly bags before indicating

familiarity with and openness to environmentally conscious alternatives. A total of 86.50% are willing to

purchase the eCOIR BAG.

Table 61: Potential Market (Business to Business)

Potential Market
Product Population Would you be willing to Potential Market
purchase a coconut coir eco bag
in bulk?

Yes No

62% 38% 62%

eCOIR BAG 844
523 321 523

The data shows that 62% of the retailers in Municipality of Bantayan are willing to purchase a

coconut coir eco bag in bulk for a discount of 5%. This indicates a strong interest in cost-saving

opportunities and suggests that retailers see value in the product for resale. Their willingness to buy in bulk

highlights their confidence in customer demand for eco-friendly alternatives, potentially driven by local

sustainability initiatives and ordinances against single-use plastics. This bulk purchasing behavior also

137
demonstrates a practical approach to stocking environmentally friendly products, making retailers key

contributors to the market’s growth.

3.6.1.5 Available Market

An available market refers to the portion of the potential market that has both the interest

and the ability to purchase a product or service.

Table 62: Available Market for eCOIR (Business to Consumer)

Available Market

Do you currently use What size of eco bag do you currently purchase or
Potential eco-friendly bags? prefer?
Product
Market
Available
Yes No Small Medium Large
Market
eCOIR 94.80% 5.20% 15% 50% 20% 94.80%
59,002
BAG
55,934 3,068 8,390 27,967 11,186 55,934

Table 58 shows that out of 59,002 individuals that could possibly become customers for the

product, only 55,934 are realistically accessible and likely to engage with the product, this number

encompasses for about 94.8 % of the potential market.

Table 63: Available Market for eCOIR (Business to Business)

Available Market

Does your
business
currently
How frequent do you purchase eco bags for your
use eco-
retail operation?
Potential friendly Available
Product
Market bags or Market
packaging?
Yes No Bi-
Daily Weekly Monthly Quarterly
Monthly
96% 4% 23% 13% 34% 30% 0% 96%
eCOIR
544
BAG 522 22 120 68 177 157 0 522

Table 62 shows that out of 544 retailers that could possibly become distributor for the

product, only 522 are likely to avail our product, this number encompasses for about 96% of the

potential market.

138
 3.6.1.6 Estimated Annual Demand

Table 64: Annual Demand 2024

ANNUAL DEMAND 2024

Frequency Frequency Frequency Frequency Frequency Frequency

Thrice Estimated
Product Actual per year per year Twice per year per year per year Bi- per year
Daily Weekly a Monthly Annual
Mix Market (314 times (52 times a Week (104 times (156 times (12 times Monthly (24 times
Week Demand
a year) a year a year) a year) a year) a year)

100% 3.69% 33.51% 10.29% 5.01% 8.44% 38.26%

eCOIR 3,228,762

55,934 2,064 648,086 18,744 974,688 5,756 598,624 2,802 437,112 4,721 56,652 21,400 513,600

Table 65: Estimated Annual Demand considering number of eco bags per purchase

ANNUAL DEMAND
1 eco 2 eco 3 eco 4 eco Total Toal Bags in Frequency Per Annual Scaled Annual
Frequency
bag bag bag bag Bags packs Year Demand Demand
Daily 13 1 0 0 15 2 314 471 66,360
Bi-
83 34 18 0 205 21 24 492 69,319
monthly
Monthly 18 7 5 2 55 6 12 66 9,299
Once a
75 38 8 1 179 18 52 931 131,142
week
Twice a
25 9 5 0 58 6 104 603 84,986
week
Thrice a
12 4 0 0 20 2 156 312 43,958
week
Total Annual Demand 405,064

Table 64 presents the estimated annual demand for eCOIR BAGs, which is approximately

3,228,762 bags. This value is derived from initial projections-based shopping frequency of the consumers.

Additionally, the second table expands on this estimate by factoring in the number of bags purchased per

shopping trip by consumers. This leads to a higher total estimated annual demand of 405,064 bags per pack

derived from 4,050,636 bags. This increase highlights the potential for greater market penetration and the

higher demand for eco-friendly bag in the target area.

139
 Table 66: Estimated Annual Demand (Business to Business)

ANNUAL DEMAND 2024

Frequency
Frequency Frequency Frequency Frequency
per year Estimated
Product Actual per year Bi- per year per year per year
Daily (314 Weekly Monthly Quarterly Annual
Mix Market (52 times Monthly (24 times (12 times (3 times a
times a Demand
a year a year) a year) year)
year)
100% 23% 13% 34% 30% 0%
eCOIR 47,372
522 120 37,680 68 3,536 178 4,272 157 1,884 0 0

Table 67: Estimated Annual Demand considering number of Eco bags per purchase

ANNUAL DEMAND
50 100 150 200 250 300 Total Frequency Annual Scaled Annual
Frequency packs packs packs packs packs packs packs Per Year Demand Demand
Daily 0 0 0 0 0 0 0 314 0 0
Weekly 2500 1700 0 0 0 0 4200 52 218,400 419,135
Bi-
750 3500 1350 0 0 0 5600 24 134,400 257,929
monthly
Monthly 100 0 3000 1400 1000 0 5500 12 66,000 126,662
Quarterly 0 0 900 0 1750 900 3550 3 10,650 20,439

Total Annual Demand 824,165

Table 66 shows the estimated annual demand for eCOIR BAGs based solely on the

frequency of retailer orders, resulting in a total demand of 47,372 bags. This figure is relatively

low because it does not consider the quantity of bags purchased per transaction. In contrast, table

N/A incorporates both the frequency of orders and the number of bags purchased per transaction,

revealing a significantly higher annual demand of 824,165 bags. This highlights a bulk-ordering

trend among retailers, where they purchase larger quantities less frequently. The second table

provides a more accurate estimate, emphasizing the need to align production and inventory with

this higher demand.

Table 68: Estimated Annual Demand considering number of Plastic bags per purchase

ANNUAL DEMAND
50 100 150 200 250 300 Total Frequency Per Annual Scaled Annual
Frequency
packs packs packs packs packs packs packs Year Demand Demand
Daily 0 0 0 0 0 0 0 314 0 0
Weekly 0 0 0 0 0 0 0 52 0 0
Bi-
0 2,600 6,300 0 0 0 8,900 24 213,600 409,924
monthly
Monthly 3,050 13,200 1,650 0 0 0 17,900 12 214,800 412,226

140
Quarterly 0 0 0 0 0 0 0 3 0 0
Total Annual Demand 822,150

There is no recorded demand for daily, weekly, or quarterly purchases, suggesting that

businesses prefer scheduled bulk orders rather than frequent small-scale transactions. The total

estimated annual demand for plastic bags is 822,150 units, aligning with the total demand for

eCOIR BAGs at 47,372 packs. Since bi-monthly and monthly purchases dominate the market,

maintaining inventory levels that cater to these purchasing patterns is crucial. Businesses should

focus on optimizing stock availability for 100-pack and 150-pack sizes while offering incentives

for bulk purchases to maximize sales.

Table 69: Estimated Annual Demand considering number of Paper bags per purchase

ANNUAL DEMAND
50 100 150 200 250 300 Total Frequency Annual Scaled Annual
Frequency packs packs packs packs packs packs packs Per Year Demand Demand
Daily 0 0 0 0 0 0 0 314 0 0
Weekly 750 0 0 0 0 0 750 52 39,000 74,846
Bi-
1,950 1,000 0 0 0 0 2,950 24 70,800 135,874
monthly
Monthly 6,100 6,500 3,150 0 0 0 15,750 12 189,000 362,713
Quarterly 0 0 0 0 0 0 0 3 0 0

Total Annual Demand 573,432

Table 69 shows the estimated annual demand for paper bags primarily driven by monthly

and bi-monthly purchases, contributing 189,000 units (scaled to 362,713 units) and 70,800 units

(scaled to 135,874 units), respectively. Monthly transactions account for the largest share, with

businesses preferring 50-pack, 100-pack, and 150-pack sizes. Bi-monthly purchases also play a

significant role, particularly in 50-pack and 100-pack sizes. Weekly purchases make up a smaller

portion, totaling 39,000 units (scaled to 74,846 units). However, daily and quarterly purchases

show no recorded demand, indicating that businesses favor scheduled bulk orders over frequent

smaller transactions.

3.6.2 Qualitative Demand Analysis

Demand analysis is research carried out to assess or determine the demand for a product or

service on the specific market by the customer. A demand analysis for a number of business

decisions such as the sales forecasting, pricing products or services, marketing and publicity

spending, manufacturing decisions, expansion planning, is one of the important considerations.

141
Furthermore, for a new company, the demand analysis can determine whether the product or

service has significant demand, and with additional information such as competitor numbers, size

of the competitors, industry growth it helps to determine if the business would enter the market to

generate enough profit to support and promote its activities.

Demand Assumption

1. No change in size and composition of population. The population size of a certain target

market is fixed for the next 5 years.

2. No change in customer preference. The customer’s preference of the services does not

change throughout the succeeding 5 years.

3. No change in customer behavior if there is a new entrant. The consumer of the product of

consumer behavior is still the same for the next proceeding years.

Demand Components

1. Frequency in availing the product. The customer’s behavior in availing the product is

said to be fixed. Frequency is the number of times that the customer availed such services.

2. Willingness to avail the product. Customers willingness to avail the service is fixed and

the same all through years. Willingness is the desire to avail the service/s without hesitation or

certain conditionn.

142
3.6.3 Supply Analysis

Market supply, based on the article by Higher Rock Education (n.d.), is the aggregated

supply of goods and services presently available in the market. According to Higher Rock

Education and Learning (2018), the market supply is the total quantity of a good or service that all

producers are willing to supply at the prevailing set of relative prices during a defined period of

time. It is understood that "Supply" means Market Supply, unless it refers to one producer.

Competitors Supply

Table 70: Annual Supply of Every Competitors

2024 Major Competitors

List of Types of bags they Sizes How much Annual Prices per
Competitors have per pack Supply pack (Php)
they sell in
a week?

Eco Bags (50 pieces) Small 250.00

340 17,680

Eco Bags (50 pieces) Medium 500.00

250 13,000

Eco Bags (50 pieces) Large 750.00

150 7,800
Julius Total 740 38,480 -
Wholesale Plastic Bags (100
Small 30.00
pieces) 900 46,800
Plastic Bags (100
Medium 60.00
pieces) 900 46,800
Plastic Bags (100
Large 90.00
pieces) 900 46,800
Total 2,700 140,400

143
 Paper Bags (100
Small '4 26.00
pieces) 500 26,000
Paper Bags (100
Medium '8 36.00
pieces) 500 26,000
Paper Bags (100
Large '16 66.00
pieces) 500 26,000
Total 1,500 78,000 -

Eco Bags (50 pieces) Small 248.00

390 20,280

Eco Bags (50 pieces) Medium 498.00

300 15,600

Eco Bags (50 pieces) Large 748.00

200 10,400
Total 890 46,280 -
Plastic Bags (100
Small 28.00
pieces) 950 49,400
Plastic Bags (100
Stella Maris Medium 58.00
pieces) 930 48,360
Store
Plastic Bags (100
Large 88.00
pieces) 910 47,320
Total 2,790 145,080 -
Paper Bags (100
Small 24.00
pieces) 550 28,600
Paper Bags (100
Medium 34.00
pieces) 530 27,560
Paper Bags (100
Large 64.00
pieces) 510 26,520
Total 1,590 82,680 -

144
Table 71: Annual Supply of Other Competitors

2024 Other competitors (39)

Types of bags they have Sizes How much per pack Prices per

they sell in a year? pack (Php)

Eco Bags Small 272 252.00

Eco Bags Medium 272 502.00

Eco Bag Large 272 752.00

Total 815 -

Table 71 shows the annual supply of every competitor with its assumptions of increase for

2024. We use the 3% of increase for it is the safest method of projection for supply. Usually, a

month has 20-22 business days, excluding the weekends and other public holidays. However, it

can vary by countries and holidays.

Table 72: Past Supply of Competitors

Major Competitors Total

Other
Supply of
Year Competitors- Past Supply
Julius Stella Maris major
39
Wholesale Store competitors

2020 209,230 432,438 1,346,232

223,207 1,778,670

2021 220,242 455,198 1,417,087

234,955 1,872,284

2022 231,834 479,155 1,491,670

247,321 1,970,825

145
 2023 244,036 504,374 1,570,179
260,338 2,074,553

2024 256,880 530,920 1,652,820

274,040 2,183,740

Others competitors supply was calculated through the formula shown below.

𝑠𝑢𝑝𝑝𝑙𝑦 𝑜𝑓 𝑚𝑎𝑗𝑜𝑟 𝑐𝑜𝑚𝑝𝑒𝑡𝑖𝑡𝑜𝑟𝑠

=
𝑛𝑜. 𝑜𝑓 𝑚𝑎𝑗𝑜𝑟 𝑐𝑜𝑚𝑝.
𝑡𝑜𝑡𝑎𝑙 𝑛𝑜. 𝑜𝑓 𝑜𝑡ℎ𝑒𝑟 𝑐𝑜𝑚𝑝.

Table 73: Past Supply of Competitors

Projected Supply
Stella Other
Julius Past Others
Year Maris Competitors- Major TOTAL
Wholesale Supply Competitors-
Store 272 Competitors
39

2020 209,230 223,207 1,346,232 1,778,670

2021 220,242 234,955 1,417,087 1,872,284
2022 231,834 247,321 1,491,670 1,970,825
2023 244,036 260,338 1,570,179 2,074,553
2024 256,880 274,040 1,652,820 2,183,740
2025 546,848 1,702,405 2,249,252

2026 563,253 1,787,525 2,350,778

2027 580,151 1,841,151 2,421,301

2028 597,555 1,896,385 2,493,940

2029 615,482 1,953,277 2,568,758

2030 633,946 2,011,875 2,645,821

146
Table 72 above shows the total annual supply of indirect competitors for the service.

Comparatively, it was based on the collected data in the interview with the competitors. The total

projected market supply of the competitors for the year 2025 was 2,249,252 units. In 2026, the

projected supply increased by 3%, and in 2027, the projected supply continuously went up to

2,421,301. For the year 2028, the forecasted supply increased to 2,493,940, followed by an increase

of 3% for 2029. Finally, for the year 2030, it increased to 2,645,821 of the projected supply of

competitors’ products, with a gap of 3% from the previous year.

eCOIR BAG SUPPLY

Table 74: Annual Supply of eCOIR BAG

Operation Total
Available time Working Annual
Time Per Capacity
Product Per 2 Days days in a Supply
Product Per 2 Days
(seconds) year (units)
(seconds) (units)

Small Size 325 23 7,222

Medium
57,600 352 95 314 29,830
Size

Large Size 362 37 11,618

TOTAL 48,670

147
 The table above shows that the company supplies a total of 48,670 units across three

product sizes. The distribution indicates that the majority of the supply is in the "Small" size

category, followed by "Medium" and "Large" sizes. It shows the capacity of the business for a

yearly operation. The annual supply was taken from multiplying the (average of produced units

daily) x (working days).

Market Forecasting

Gregory (2020) mentioned that, offering a product that is novel to the market or improving

on one that already exists is one of the best methods to enter a crowded or overcrowded market.

The objective is to provide something that will increase market demand and enable your company

to seize market share from rivals. Marketing forecasts help you understand how many leads your

company will generate within a specific period of time and how the leads will move through the

different stages of your lead nurturing process before they are ready to make a purchase.

Table 75: Market Forecasting of eCOIR BAG

Competitors Supply
eCOIR
Other Untapped
Year Demand Major Gap BAG
Competitors- Market
Competitors Supply
39
2024 2,624,811 530,920 1,652,820 441,071 - 441,071
2025 2,699,399 546,848 1,702,405 450,147 - 450,147
2026 2,776,170 563,253 1,787,525 425,392 48,670 376,722
2027 2,855,187 580,151 1,841,151 433,886 121,675 312,211
2028 2,936,518 597,555 1,896,385 442,578 182,513 260,066
2029 3,020,232 615,482 1,953,277 451,474 237,266.25 214,208
2030 3,106,400 633,946 2,011,875 460,579 308,446 152,133

148
 Table 75 above sample illustrates the market predicted for eCOIR BAG based on projected

market demand and supply for the next 5 years, starting in 2026. by subtracting annual supply

from annual demand, which results in a market gap. The accessible market that eCOIR BAGs may

supply in the future is referred to as the gap. The percentage of the market gap was 15.32%, then

eCOIR BAG businesses entered the market, and the average untapped market became 13.57% in

2027. Lastly, the untapped market is somehow projected to decline from 2026 until 2030. The

eCOIR BAG will add more lines in the production area to maintain the supply needed by the

market. Likewise, in 2029 and throughout 2030, the untapped market was projected downward

based on the result below, and its projected demand continuously decreased in those particular

years.

3.6.4 Market Share Estimation

Market share refers to the portion or percentage of a market earned by a company or an

organization. In other words, a company’s market share is its total sales in relation to the overall

industry sales of the industry in which it operates (Corporate Financial Institute, 2022). The

proponents used pie charts to illustrate the portion of the market eCOIR BAG dominated.

Table 76: Market Share for the year 2026

Competitors Supply
eCOIR
Other Untapped
Year Demand Major Gap BAG
Competitors- Market
Competitors Supply
39

2026 2,776,170 563,253 1,787,525 425,392 48,670 376,722

149
 2026
14%
20%
2%

Major Competitors
Other Competitors (39)
eCOIR Bag
Untapped Market

64%

Figure 26: Market Share for the Year 2026

The forecasted market share of year 2026, illustrated that eCOIR BAG have 2% share of

the overall market, 20% from major competitors, 64% from other competitors and 14% from

untapped market. With an 2% market share, eCOIR BAG holds a moderate position within its

industry. A 2% market share suggests room for growth and expansion. eCOIR BAG has the

opportunity to increase its market presence and capture a larger share by implementing effective

strategies, such as product innovation, marketing campaigns, or strategic partnerships.

Table 77: Market Share for the year 2027

Competitors Supply
eCOIR
Other Untapped
Year Demand Major Gap BAG
Competitors- Market
Competitors Supply
39

2027 2,855,187 580,151 1,841,151 433,886 121,675 312,211

150
 2027
11%
20%
4%

Major Competitors
Other Competitors (39)
eCOIR Bag
Untapped Market

65%

Figure 27: Market Share for the Year 2027

According to Figure NA, for the year 2027, eCOIR BAG is projected to experience a

significant stable in market share. This remarkable increase can be attributed to an observation

plan set for that next year. Furthermore, there has been a notable reduction of 3% in the share of

the untapped market as the market share of other competitors increased by 1%, also a steady share

of major competitors.

Table 78: Market Share for the year 2028

Competitors Supply
eCOIR
Other Untapped
Year Demand Major Gap BAG
Competitors- Market
Competitors Supply
39
2028 2,936,518 597,555 1,896,385 442,578 182,513 260,066

151
 2028
9%
20%
6%

Major Competitors
Other Competitors (39)
eCOIR Bag
Untapped Market

65%

Figure 28: Market Share for the Year 2028

Based on the information provided in Figure NA for the year 2028, eCOIR BAG market

share soar to 2% of the overall market. Furthermore, the untapped market reduced its share of 2%.

This indicates that eCOIR BAG has successfully maintained its dominant position within the

industry, even in the absence of direct competitors. With a market share of 6%, eCOIR BAG holds

a significant advantage and exerts substantial control over the market. This dominance highlights

eCOIR BAG ability to attract and retain customers, showcasing its strength in delivering products

or services that meet market demands.

Table 79: Market Share for the year 2029

Competitors Supply
eCOIR
Other Untapped
Year Demand Major Gap BAG
Competitors- Market
Competitors Supply
39

2029 3,020,232 615,482 1,953,277 451,474 237,266 214,208

152
 2029
7%
8% 20%

Major Competitors
Other Competitors (39)
eCOIR Bag
Untapped Market

65%

Figure 29: Market Share for the Year 2029

For the year 2029, Figure above illustrated the forecasted market share. The untapped

market had 7% and decreased by 2% of share in the overall market. Moreover, the eCOIR BAG

supply increased its market share at 2%.

Table 80: Market Share for the year 2030

Competitors Supply
eCOIR
Other Untapped
Year Demand Major Gap BAG
Competitors- Market
Competitors Supply
39

2030 3,106,400 633,946 2,011,875 460,579 308,446 152,133

153
 2030
5%
10% 20%

Major Competitors
Other Competitors (39)
eCOIR Bag
Untapped Market

65%

Figure 30: Figure NA. Market Share for the Year 2030

Based on the forecasted market share shown in the Figure NA above for the year 2030,

several key insights can be observed. The untapped market, which originally held a share of 7%

in the overall market, experienced a marginal decline of 2% equivalent to 152,133. This indicates

a gradual reduction in the untapped market's size, implying that a larger portion of the market has

been explored or capitalized upon.

On the other hand, the market share of eCOIR BAG, a prominent player in the industry, witnessed

a growth of 2%. This indicates that eCOIR BAG has successfully expanded its market presence,

capturing additional market share.

Actual Market

The actual market, also known as the server market or market share, refers to the portion

of the available market that a company or business has been able to capture or serve successfully.

154
It represents the customers or market segment that the company has attracted and converted into

actual sales.

Table 81: Actual Market

Available Market Actual Small Medium Large

Year (15%) (61%) (24%)
Market Share Market
2026 425,392 2% 48,670 7,301 29,689 11,681
eCOIR 2027 433,886 4% 121,675 18,251 74,222 29,202
Bag
2028 442,578 6% 182,513 27,377 111,333 43,803
2029 451,474 8% 237,266 35,590 144,732 56,944
2030 460,579 10% 308,446 46,267 188,152 74,027

Based on the given information, eCOIR BAG has captured a moderate percentage of the

available market. This indicates that eCOIR BAG is serving a portion of the market but has not

reached its full potential. The difference between the available market and the actual market

suggests that there is room for growth and expansion.

Market Price

Market price is generally considered to be the price at which an asset can be bought or

sold. There are several variations on the concept, depending upon the context in which it is used

(Accounting Tools, 2022).

Table 82: Bill of Material of Small Sized Product

DIRECT MATERIAL
QUANTITY
MATERIALS COST
Coconut Husk 2 kg ₱2.68
Cotton Webbing 1.5 m ₱18.00
Heavy-duty Thread 6m ₱5.00
eCOIR Bag Branding 1 pc ₱2.00

155
 Glue Adhesive 90 ml ₱10.80
Total Direct Cost ₱38.48
Direct Labor Cost per Unit ₱31.00
Manufacturing Overhead Cost per
₱8.00
Unit
Total Manufacturing Cost ₱77.48
Markup (50%) ₱38.74
Selling Price ₱116.22

Table 83: Bill of Material of Medium Sized Product

DIRECT MATERIAL
QUANTITY
MATERIALS COST
Coconut Husk 2.5 kg ₱3.35
Cotton Webbing 1.5 m ₱18.00
Heavy-duty Thread 7m ₱5.83
eCOIR Bag Branding 1 pc ₱2.00
Glue Adhesive 90 ml ₱10.80
Total Direct Cost ₱39.98
Direct Labor Cost per Unit ₱31.00
Manufacturing Overhead Cost per
₱8.00
Unit
Total Manufacturing Cost ₱78.98
Markup (50%) ₱39.49
Selling Price ₱118.47

Table 83. Bill of Material of Large Sized Product

DIRECT MATERIAL
QUANTITY
MATERIALS COST
Coconut Husk 3 kg ₱4.02
Cotton Webbing 1.7 m ₱20.40
Heavy-duty Thread 7.5 m ₱6.25
eCOIR Bag Branding 1 pc ₱2.00
Glue Adhesive 90 ml ₱10.80
Total Direct Cost ₱43.47

156
 Direct Labor Cost per Unit ₱31.00
Manufacturing Overhead Cost per
₱8.00
Unit
Total Manufacturing Cost ₱82.47
Markup (50%) ₱41.24
Selling Price ₱123.71

The tables shown above was the product cost of eCOIR BAG with a selling price of

₱116.22 for small size, ₱118.47 for medium size and ₱123.71 for large size. The total cost of

the materials was based from the bill of material. The direct labor was computed based on the

salary rate, multiplied by no. of workers, and divided by the total output per day. The

manufacturing overhead was computed based on the utilities cost used in producing the product

which is a constant of 8 pesos per unit. The manufacturing cost was computed by adding total

material cost + direct labor cost + manufacturing overhead. Lastly, a percent of 50% was added to

the markup of the total manufacturing cost to derive the selling price of the product.

3.6.5 Sales Projection

The process of estimating future revenue by predicting the amount of product a sales unit

(which can be an individual salesperson, a sales team, or a company) will sell in the next week,

month, quarter, or year is called Sales Projection. At its simplest, a sales forecast is a projected

measure of how a market will respond to a company’s go-to-market efforts. The company used

5% increase since that is the safe portion to use.

157
 Table 84: Sales Projection
SMALL eCOIR Bag YEAR 1 - 2026
Total Sales 2026 2027 2028 2029 2030
Month January February March April May June July August September October November December

Number of Units per month 713 713 713 713 713 713 713 713 713 713 713 713 8,556 8,898 9,432 9,998 10,598
Selling Price 116.22 116.22 116.22 116.22 116.22 116.22 116.22 116.22 116.22 116.22 116.22 116.22 116 122 128 135 141

Total Sales 82,864.86 82,864.86 82,864.86 82,864.86 82,864.86 82,864.86 82,864.86 82,864.86 82,864.86 82,864.86 82,864.86 82,864.86 994,378 1,085,861 1,208,563 1,345,131 1,497,131

MEDIUM eCOIR Bag YEAR 1 - 2026

Total Sales 2026 2027 2028 2029 2030
Month January February March April May June July August September October November December

Number of Units per month 2945 2945 2945 2945 2945 2945 2945 2945 2945 2945 2945 2945 35,340 36,754 38,959 41,296 43,774

Selling Price 118.47 118.47 118.47 118.47 118.47 118.47 118.47 118.47 118.47 118.47 118.47 118.47 118 124 131 137 144

Total Sales 348,894.15 348,894.15 348,894.15 348,894.15 348,894.15 348,894.15 348,894.15 348,894.15 348,894.15 348,894.15 348,894.15 348,894.15 4,186,730 4,571,909 5,088,535 5,663,539 6,303,519

LARGE eCOIR Bag YEAR 1 - 2026

Total Sales 2026 2027 2028 2029 2030
Month January February March April May June July August September October November December

Number of Units per month 1147 1147 1147 1147 1147 1147 1147 1147 1147 1147 1147 1147 13,764.00 14314.56 15173.4336 16083.83962 17048.86999
Selling Price 123.71 123.71 123.71 123.71 123.71 123.71 123.71 123.71 123.71 123.71 123.71 123.71 123.71 129.89 136.38 143.20 150.36

Total Sales 141,889.64 141,889.64 141,889.64 141,889.64 141,889.64 141,889.64 141,889.64 141,889.64 141,889.64 141,889.64 141,889.64 141,889.64 1,702,675.62 1,859,321.78 2,069,425.14 2,303,270.18 2,563,539.71

Table 85: Total Sales Projection

TOTAL SALES PROJECTION

2026 ₱6,883,783.74

2027 ₱7,517,091.84

2028 ₱8,366,523.22

2029 ₱9,311,940.35

2030 ₱10,364,189.61

The sales projections for all three service categories (Small, Medium, and Large) show a

consistent growth trend over the years 2026 to 2030. The total sales projections demonstrate a

steady increase, indicating positive performance and market demand for the company's products

or services.

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3.7 Marketing Mix Decisions

The marketing mix consists of four key elements used to design and implement the

marketing strategy for a product or service: product, price, place, and promotion. Each of these

elements must be thoughtfully evaluated when developing an effective marketing plan.

Additionally, the marketing mix should be customized to suit the target audience, objectives, and

budget of the product or service.

3.7.1 Product

The product mix of eCOIR BAGs includes a range of eco-friendly bags made from coconut

coir fibers. These products are designed for various uses such as grocery shopping or carrying

everyday essentials. The mix includes different sizes and colors and customizations to cater to

diverse customer preferences. Each bag is crafted with durable coir material, ensuring functionality

and sustainability.

Levels of Product

The levels of a product describe the layers of value and features offered to the customer,

helping businesses understand and meet customer needs effectively. The concept is divided into

three main levels:

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 Figure 31: Levels of Service

Branding

Branding is the process of creating a unique identity for a product, service, or business in

the minds of consumers. It involves the use of elements like a name, logo, tagline, design, and

messaging to shape how a brand is perceived and to differentiate it from competitors.

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Company logo for eCOIR BAG:

Figure 32: Branding of eCOIR BAG

Positioning

The eCOIR brand positions itself as a leading advocate for sustainability, combining eco-

conscious innovation with functionality. Rooted in Bantayan Island’s mission to reduce plastic

waste, eCOIR leverages its unique selling points of eco-friendliness, durability, and support for

local craftsmanship. The brand distinguishes itself by offering premium-quality products that not

only provide practical solutions but also contribute to environmental preservation.

By positioning itself as a premium eco-friendly solution, eCOIR directly appeals to

environmentally conscious consumers and organizations looking to align with sustainable

practices. This strategic alignment with Bantayan Island’s ongoing initiatives—such as ordinances

banning single-use plastics, highlights eCOIR as a socially responsible and community-centered

brand.

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Labelling

The product name and logo

● The tagline ● Care instructions for durability.

● Information about its benefits

Figure 33: Front of the Tag

Labels on eCOIR BAGs (Back of the Tag):

● The business social media

● A short note how the product support

sustainability

Figure 34: Back of the Tag

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3.7.2 Price

It is the monetary value customers pay for a product or service and serves as a critical

component of a business's success. It directly influences revenue and profitability by ensuring costs

are covered and sustainable profits are achieved. A well-determined price can position a product

effectively in the market, signaling either premium quality or affordability, depending on the

business strategy. Price also shapes customer perception; when the cost aligns with the perceived

value and benefits, customers are more likely to purchase and remain loyal.

Pricing plays a vital role in balancing market demand and competition. Businesses must

monitor competitors to remain relevant and adopt strategies such as skimming, penetration, or

value-based pricing to meet their goals. Price impacts a business's ability to sustain operations and

invest in future innovations. It affects customer retention, market share, and overall brand

perception. Balancing cost, customer expectations, and market conditions ensures long-term

success, profitability, and competitiveness.

Factors

Several factors influence the pricing of eCOIR BAGs, ensuring that the product remains

competitive while aligning with customer expectations and covering production costs. The cost of

production is a significant determinant, as it includes expenses for raw materials such as coconut

coir and adhesives, labor costs for skilled workers to ensure quality, and overhead costs associated

with operating the production facility. Additionally, market demand plays a crucial role. The

growing awareness of environmental issues and the enforcement of government policies banning

single-use plastics create a favorable market for eco-friendly products. Both residents and tourists

163
in Bantayan Island show a willingness to support sustainable alternatives, enhancing the demand

for eCOIR BAGs.

Competition from existing eco-friendly bag options, such as canvas and reusable tote bags,

must also be considered. Analyzing competitors’ pricing helps ensure that eCOIR BAGs are

positioned effectively in the market. Lastly, government support can significantly impact pricing.

Collaborations with Bantayan LGU’s sustainability programs may provide cost reductions through

incentives or grants, further influencing the final price of eCOIR BAGs. These factors collectively

ensure a balanced and strategic approach to pricing the product.

Policies and approaches

Pricing policies and approaches are strategic frameworks businesses use to determine how

products or services are priced to achieve organizational goals. These methods ensure that pricing

aligns with production costs, customer expectations, and market conditions while contributing to

the company’s profitability, competitiveness, and customer satisfaction. For eCOIR BAGs,

selecting the right policies and approaches is essential to balance affordability, sustainability, and

value for customers.

Cost-Plus Pricing is a straightforward approach where a markup is added to the total

production cost to ensure profitability. This method allows eCOIR BAGs to cover material, labor,

and overhead expenses while offering a fair price to customers. By maintaining affordability, this

approach ensures the product remains accessible to a broad audience while supporting the financial

sustainability of the business.

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 Promotional Pricing is another effective strategy, particularly during the product launch

phase. By offering introductory discounts, eCOIR BAGs can attract first-time buyers, generate

interest, and build customer loyalty. This approach is especially useful in creating a buzz around

the product and establishing a foothold in the competitive market for eco-friendly alternatives.

Combining these policies and approaches allows eCOIR BAGs to achieve both short-term sales

goals and long-term brand loyalty.

Fixed pricing. The eCOIR BAG adopts a fixed pricing strategy, where product prices

remain constant regardless of fluctuations in material or labor costs. This approach is ideal for

businesses aiming to offer competitive rates or maintain a stable pricing structure. Alternatively,

value-based pricing focuses on the perceived value of the product from the customer’s perspective.

While this method considers material and labor costs, it prioritizes the product's perceived benefits,

making it a strategic choice for maximizing profits.

New product pricing strategies

New product pricing strategies are essential tools for introducing innovative products like

the eCOIR BAG to the market. These strategies help businesses establish a strong foothold, attract

target customers, and position the product competitively. For eCOIR BAGs, these approaches are

designed to balance affordability, sustainability, and customer appeal while maximizing market

penetration and profitability.

Penetration Pricing. Penetration pricing involves launching the eCOIR BAG at a lower

price to rapidly capture market share and encourage widespread adoption. This approach is

particularly effective for attracting local retailers, government institutions, and tourism businesses

on Bantayan Island, who are likely to support sustainable initiatives. By offering a competitive

165
price at the outset, the eCOIR BAG can build a loyal customer base and establish itself as a

preferred eco-friendly alternative.

Bundle Pricing. Bundle pricing offers discounts for bulk purchases, making it an attractive

option for local stores, government projects, and tourism-related businesses promoting sustainable

materials. By encouraging larger orders, this strategy not only increases sales volume but also

fosters partnerships with organizations and businesses aligned with eco-friendly practices. It can

also help reduce per-unit production costs through economies of scale, improving overall

profitability.

Freemium Model. The freemium model involves providing small eCOIR BAG samples

to potential stakeholders, such as government agencies or during community events. This approach

serves as a cost-effective promotional tool, allowing customers to experience the product firsthand.

By building brand awareness and demonstrating the quality and utility of the eCOIR BAG, the

freemium model can drive future purchases and establish trust within the community.

Implementing these new product pricing strategies ensures that the eCOIR BAG appeals to diverse

customer segments, achieves market penetration, and aligns with the company's sustainability

goals. Each strategy contributes uniquely to building a strong brand presence and fostering long-

term growth.

Product mix pricing strategy

A product mix pricing strategy is an approach that involves establishing varied prices for

different products within a product line. This technique aims to optimize profitability and

distinguish the company from its competitors. It considers factors such as the cost of production,

consumer demand for each product, and the competitive market landscape. Product mix pricing

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can also be used to target different consumer segments, as well as to encourage customers to

purchase multiple products.

Product Line Pricing Bundle Pricing

Optional Product Captive Product

Pricing Pricing

Figure 35: Product mix pricing strategy

Product Line Pricing. The eCOIR BAG range can include options of various sizes, and

colors catering to different customer needs and preferences. Tiered pricing would be applied based

on the materials used and the complexity of production for each bag type. For instance, larger bags

may be priced higher, while smaller would be more affordable. This strategy ensures that

customers can choose a product that fits their budget and purpose, while also maximizing the

company’s market reach.

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 Bundle Pricing. To encourage bulk purchases and increase sales, the eCOIR BAG can be

sold in bundles, such as a standard tote bag paired with a smaller pouch, at a discounted price. This

approach is particularly attractive to businesses, government projects, and organizations promoting

sustainability. For example, retailers might purchase bundled sets to resell to customers. Bundle

pricing not only increases the perceived value of the purchase but also enhances customer

satisfaction by offering cost-effective solutions.

Optional Product Pricing. Customization can add a unique value proposition to the

eCOIR BAG. Customers can opt for personalized features, such as adding company logos, event

branding, or unique designs, for an additional fee. This option targets local businesses, events, and

promotional campaigns, offering a tailored product that meets specific needs. Optional product

pricing ensures additional revenue streams while providing customers with a product that aligns

with their personal or business identity.

Captive Product Pricing. To complement the main eCOIR BAG product, additional items

such as reusable inserts or linings can be sold separately. These accessories enhance the bag’s

durability and functionality, appealing to customers who prioritize long-term use. This strategy

allows customers to upgrade their eCOIR BAGs according to their needs, fostering repeat

purchases and increased customer engagement.

3.7.3 Placement

Effective placement ensures that the product reaches its target audience, including local

retailers, government institutions, and individual consumers, while emphasizing accessibility and

convenience.

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Value Delivery Network and Their Functions

A value delivery network involves all the entities and processes that work together to

deliver the product from production to the customer. For eCOIR BAGs, this includes:

Production Distribution Retailers and

Suppliers
Facilities Channels Partners

Figure 36: Value Delivery Network

Suppliers. Suppliers play a critical role in ensuring the consistent availability of high-

quality raw materials for eCOIR BAG production. This includes sourcing coconut coir, adhesives,

and other essential components required for manufacturing. Reliable suppliers ensure that the

production process runs smoothly without interruptions, helping maintain product quality and

adherence to sustainability goals. Additionally, establishing partnerships with local coconut

farmers and material providers supports the local economy and aligns with the eco-friendly

mission of eCOIR BAGs.

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 Production Facilities. The production facilities in Barangay Kampingganon serve as the

backbone of the value delivery network, transforming raw materials into finished eCOIR BAGs.

This process involves cleaning, processing, and assembling coconut coir fibers with adhesives to

create durable and sustainable bags. The facility also ensures quality control measures are in place,

ensuring that each bag meets customer expectations.

Distribution Channels. Distribution channels encompass the systems and networks

responsible for delivering finished products from the production facility to retailers, partners, and

customers. Facility storage and inventory management, ensuring an adequate supply of eCOIR

BAGs to meet demand. Transport partners or customers or our 6 wheelers Canter Truck. They are

responsible for efficient and timely delivery, whether locally within Municipality of Bantayan

Island or to other areas of the island. These channels are designed to minimize delays and ensure

that products arrive in excellent condition, contributing to customer satisfaction.

Retailers and Partners. Retailers and partners serve as the face of the eCOIR BAG brand

to customers. This includes Santa Fe, Bantayan, and Madridejos businesses such as eco-friendly

stores, markets, and shops, as well as tourism agencies and local government offices of 3 existing

Municipalities. Retailers make the product accessible to everyday consumers, while partnerships

with organizations like LGUs allow for wider promotion and integration into community projects.

By these relationships, eCOIR BAGs can expand market reach, drive sales, and reinforce their

commitment to environmental responsibility.

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3.7.4 Promotions

This encompasses the strategies used to communicate with customers, raise awareness, and

encourage purchases. For eCOIR BAGs, it highlights the eco-friendly benefits, sustainability, and

contribution to reducing plastic pollution.

Marketing Communications Mix

The marketing communications mix includes various tools and tactics to effectively

promote the eCOIR BAG:

Advertisi
ng
Sales
Public
Promotio
Relations
ns
Marketing
Communic
ations Mix
Digital Direct
Marketin Marketin
g g
Personal
Selling

Figure 37: Marketing Communications Mix

Advertising

Advertising is a key component of promoting eCOIR BAGs, focusing on highlighting the

product’s eco-friendly features, durability, and unique benefits. Social media platforms like

Facebook are ideal channels for targeted campaigns, as they can reach eco-conscious customers

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both locally and beyond. Additionally, using local media, such as community radio station, helps

connect with residents of Bantayan Island who may not be active on digital platforms.

Sales Promotions

Sales promotions are designed to create immediate incentives for customers to purchase

eCOIR BAGs. Offering discounts for first-time buyers introduces the product to new customers,

while bulk purchase discounts or bundle deals encourage larger orders from local retailers,

government offices, and tourism agencies. For example, offering "Buy 3, Get 1 Free" deals during

community events or holiday seasons can attract more customers and increase sales volume.

Seasonal promotions tied to environmental awareness events, such as Earth Day, can further

emphasize the brand's mission.

Public Relations (PR)

Public relations efforts focus on building goodwill and fostering trust within the

community. Collaborating with Bantayan Island’s local government units (LGUs) on

sustainability initiatives, such as waste reduction campaigns or eco-friendly market programs, it

will create the eCOIR BAG brand’s reputation stronger. Participation in local events, such as

environmental clean-up drives or festivals, can also create positive associations with the brand.

Direct Marketing

Direct marketing is a personalized approach to reaching potential customers. Sending

email and SMS updates about the updated eCOIR BAG designs, limited-time discounts, or

upcoming events ensures direct communication with the target audience. For example, a monthly

email campaign could include stories about how the bags are made, emphasizing their eco-friendly

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production process, and offering exclusive discount codes to followers. This strategy fosters

loyalty and keeps customers informed about the brand.

Personal Selling

Personal selling involves one-on-one interactions with potential customers to build strong

relationships and showcase the product's features. Engaging with local businesses, schools, or

organizations through face-to-face presentations or meetings can help communicate the value of

eCOIR BAGs. For instance, presenting sample bags to local retailers or government offices with

detailed explanations of their durability and sustainability can drive interest and bulk orders.

Personal selling also allows for direct feedback, helping the company refine its offerings.

Digital Marketing

Social media platforms like Facebook are particularly effective for targeting eco-conscious

audiences. Because Facebook has a wide range of users especially in the island and the trends of

being “meta vlogger” concept. We can use that trend as content strategies. This may include video

demonstrations of the bag-making process, customer testimonials, and engaging posts about

sustainability tips. Facebook, with its short-form video format, can be used for creative campaigns

highlighting the practicality and uniqueness of eCOIR BAGs, such as "a day in the life of an

eCOIR BAG user." Additionally, running social media contests or giveaways can boost

engagement and attract new followers to the brand.

3.8 Life Cycle Strategies

Table 86: Life Cycle Strategies

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 Cost
Life Cycle Duration Activities
(₱)
Promotional Video 2,500
Virtual Posters 500
Introduction Stage 2026-2028 Printed Posters (3x5) 3,000

Preparation for the day launching 8,000

Improving online platform in

-
Growth Stage 2028-2029 online promotion like TikTok
Company Team Building -
Production Evaluation 790
Maturity Stage 2029-2030
Once a year end party -
Seminar 2,000
Declining Stage 2030-2031 Adding new promotions and
-
improve services

Total 16,790

3.8.1 Introduction Stage

The eCOIR BAG Business is dedicated to giving eco-friendly bags product to businesses

and customer who require them. The company will be presented to the Bantayan Cebu business

entities and consumers. Pricing will be moderately high compared to competitors when the

company first enters the market, but there will be no extra charge for orders placed on demand. In

order to draw in new clients, advertisements will be made on promotional video, virtual posters,

and printed posters.

3.8.2 Growth Stage

The consumer value has been recorded at this point, and it is assumed that the products

would satisfy the marketing goals. eCOIR BAG Business is now available in a position to gain

industry market share. However, the rising business is currently the target of the rival's interest, so

the enterprise must be ready for other business competitions. To maintain the product on the market

while it is still in the development and expansion stage, the company should offer free delivery
174
services, and quick deliveries. A consistent improvement to the product's manufacturing procedure

will provide the company a competitive advantage. Since there is still a danger that rivals will steal

the potential market targets, promotional efforts should still be made. Additionally, best practices

and efficient procedures that help the company transition from the start-up phase to the maintaining

the development stage is important. The business may now forecast or calculate predicted demand

for the upcoming months because its financial situation has stabilized at this point in the product's

lifecycle. Since higher demand estimates may initially suggest that the company is flourishing, the

growth stage should be closely observed because when the expected outcomes signal a likely

decline. During a recession, your business might eventually have to shut down. The company

concentrates on the advantages it created during this phase. The initial phase, when it will continue

to obtain more benefits. It was anticipated that elements like customer service, marketing

initiatives, and promotional spending would not change.

3.8.3 Maturity Stage

The company's market share has significantly increased and now outpaces its costs at this

time (assumed that the forecasted demands are increasing). As a result of there being fewer

customers at this time, the business will earn. Promotional initiatives because of the company's

well-known brand. Additionally, numerous changes were made to the delivery and price rules to

put the company in a better position. To encourage or persuade more people to purchase the

products, it's also a good idea to change the size and other designs. At this point, promotional

activity is recommended for marketing plans in which the company would adopt a new aesthetic

to appear more modern.

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3.8.4 Decline Stage

The business could start to decline if its marketing initiatives or product sales cannot be

maintained. Customers may cause this stage to occur. withdrawing from the product or when

promotional activities lose their effectiveness. At this time, the product's variations will start to

disappear from the market as a result of its declining market share. Pricing must be competitive

despite the recession, but promotional efforts will be scaled down, and this time, devoted

customers will be recognized. The company will then determine whether to update the products.

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 CHAPTER IV.

TECHNICAL ASPECT

4.1 Design Constraints Analysis

This section presents an analysis of the design constraints encountered in the

development of the eco-friendly eCOIR BAG.

Table 87: Technical Constraints

Technical Constraints

Constraints Issue Mitigations

Machinery Machinery will be ordered Partner with the machinery

Specifications from outside Bantayan. manufacturer for virtual technical

Constraints will be related to support and provide comprehensive

the availability of technical training to local workers for

support and machine operation and maintenance.

maintenance expertise. Establish a partnership with local

repair specialists who can be

trained for machinery maintenance.

Shipping and Transporting machinery and Schedule orders in advance to

Transportation of spare parts from outside account for potential delays.

Machinery Negotiate with reliable logistics

177
 Bantayan may incur additional partners for cost-effective and

costs and delays. efficient transport. Maintain a stock

of essential spare parts to reduce

dependency on external shipments.

Budget Constraints

Material Cost Sourcing coconut husks and Establish long-term contracts with

other raw materials from coconut suppliers and other raw

Bantayan provides an materials to stabilize prices and

opportunity for cost-effective ensure consistent supply.

raw materials, but fluctuations Implement a local collection

in supply and demand, as well network to minimize transportation

as transportation costs, could costs.

impact the total cost of

production.

Production Cost per The overall cost per bag is Highlight the value proposition by

Unit higher compared to existing educating customers on the

competitors in the market due environmental benefits and long-

to its features, such as term savings of reusable bags.

durability and reusability for Explore subsidies or financial

about 6 to 12 months. incentives from LGUs promoting

eco-friendly products.

Raw Material Constraints

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 Raw Material Consistent sourcing of coconut Develop a network of multiple

Availability husks is essential for coconut suppliers to diversify

continuous production. While sourcing. Establish stockpiling

coconuts are abundant on strategies during peak harvest

Bantayan Island, supply chain seasons to mitigate shortages.

disruptions or seasonality

could impact the availability

of raw materials.

Availability of Skilled Ensuring that there is Conduct training programs for

Labor sufficient training for local workers on machinery operation

workers to operate and and maintenance. Partner with

maintain the machinery technical training schools or offer

properly. Since the machinery internship programs to build a

is being imported, the design skilled labor pool.

should also consider ease of

maintenance and

troubleshooting.

Market Constraints

Competition Although the local ordinance is Develop a strong marketing

encouraging the use of eco- strategy emphasizing the eco-

friendly alternatives, plastic friendly, durable, reusable features

bags might still be cheaper or of coir bags and other sizes.

more readily available in some Collaborate with local government

179
 cases. The coir bags will need and businesses to promote the

to be marketed effectively to product. Offer bulk purchase

highlight their advantages, discounts for retailers to encourage

such as being durable, adoption.

sustainable, reusable, different

sizes.

4.2 Production Process

This section discusses the production process of eCOIR BAG. It shows series of steps or

activities used to transform raw materials, components, or inputs into eCOIR BAG. This section

includes, the process type, process flow chart, precedence table and diagram.

4.2.1 Process Type

The production process that the proposed business will use is the batch production process.

To ensure the smooth operation of producing different sizes of bags, they will be made in

batches. The first batch will be small, the second batch will be medium-sized, and the last

batch will be large.

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 Medium
Material Small eCOIR Large eCOIR
eCOIR bag
Preparation bag production bag production
production

Figure 38: Batch process manufacturing of eCOIR BAG

181
4.2.3 Process Flow Chart

This is a visual representation of the sequence of steps involved in eCOIR production

process. Start

Coconut Husk

Wet the coconut husks

Feed the husks into the

fiber extractor

Weigh the extracted

fiber into weighing
scale

Is the weight No
within the
required standard?

Yes

Move the fiber to the

spray area

182
 1 A

Spray adhesive glue on

Transfer to sewing area
the fiber

Transfer to the Sew the coir canvas into

hydraulic press area bag

Evenly place the fiber

into the hydraulic press
Does coir bag
meets the
required
Press the fiber standards?

Transfer to drying
machine
Move to storage

Transfer to cutting area

Start

Cut the coir canvas to a

required size

183
Figure 39: Process Flow of eCOIR production
4.2.3 Precedence Table

In this section, the precedence table is shown which is used as a tool for scheduling

activities during project planning. It is based on the flow of activities that satisfies each process

that comes before and after to obtain the final product.

Table 88: Precedence Table for small size eCOIR

Duration Predecessor
Activity Description Symbol
(seconds) Process

Husk Feeding and Coir Extraction A 15 -

Weigh the extracted coir B 20 A

Move the coir to the spray area C 3 B

Spray adhesive glue on the coir D 10 C

Transfer to the hydraulic press area E 3 D

Evenly place the coir into the hydraulic

F E
press 5

Press the coir G 42 F

Transfer to drying machine H 2 G

Dry the Coir Canvas I 45 H

Cut the canvas into templates J 60

Sew the templates into small size

K J
eCOIR BAG 120

Total: 325 seconds / 5.42 minutes

184
Table 89: Precedence Table for medium size eCOIR

Duration Predecessor
Activity Description Symbol
(seconds) Process

Husk Feeding and Coir Extraction A 18 -

Weigh the extracted coir B 20 A

Move the coir to the spray area C 3 B

Spray adhesive glue on the coir D 10 C

Transfer to the hydraulic press area E 3 D

Evenly place the coir into the hydraulic

F E
press 5

Press the coir G 42 F

Transfer to drying machine H 2 G

Dry the Coir Canvas I 45 H

Cut the canvas into templates J 60 I

Sew the templates into small size

K J
eCOIR BAG 144

Total: 352 seconds/5.87 minutes

185
Table 90: Precedence Table for large size eCOIR

Duration Predecessor
Activity Description Symbol
(seconds) Process

Husk Feeding and Coir Extraction A 22 -

Weigh the extracted coir B 20 A

Move the coir to the spray area C 3 B

Spray adhesive glue on the coir D 10 C

Transfer to the hydraulic press area E 3 D

Evenly place the coir into the hydraulic

F E
press 5

Press the coir G 42 F

Transfer to drying machine H 2 G

Dry the Coir Canvas I 45 H

Cut the canvas into templates J 30 I

Sew the templates into small size

K J
eCOIR BAG 180

Total: 362 seconds/6.03 minutes

186
4.2.4 Precedence Diagram

Figure 40: Precedence Diagram Small size

Figure 41: Precedence Diagram Medium size

Figure 42: Precedence Diagram Large size

187
4.2.5 Assembly Chart

This assembly chart gives a broad overview of how several parts manufactured separately

are to be assembled to make the eCOIR BAG.

Coir Fiber
Coir Canvas
SA-1
Assembly A-1

Glue Adhesive

Coir Canvas
Coir Bag Frame
Coir Webbing SA-2
Assembly A-2

Thread

Coir Bag Frame

Coir Bag
Assembly
SA-3 A-3

Handle

Inspection

Brand Tag A-4

eCOIR bag
A-4

Figure 43: Assembly Chart of eCOIR bag

188
4.2.7 Process Schematic Diagram

This section presents the process schematic diagram for manufacturing the eCOIR BAG,

highlighting the key stages and flow of operations. It provides a clear visual representation of the

production process, helping to understand the sequence and integration of materials and steps.

Figure 44: Process Schematic Diagram of eCOIR BAG

The process schematic diagram for eCOIR BAG production outlines the key steps in

manufacturing. It starts with coconut husk collection, followed by transportation to the facility.

The husks are then stored in a warehouse before undergoing coconut coir processing, where fibers

are extracted. These fibers are used in coir canvas making, which is then assembled into eCOIR

BAGs. After packaging, the finished bags go through distribution, making them available to

consumers. This process ensures efficient production and quality control.

189
4.3 Work Cycle Analysis

In this section refers to actions and a moving flow system that are routinely carried out

without altering the process of going from start to finish. This section includes the cycle time value,

the number of workstations, the line efficiency, and the likely ultimate output.

4.3.1 Cycle Time

This document presents a new strategy for enhancing our time and process management at

work. Cycle time, which refers to the total duration required to complete a task or series of actions,

significantly impacts our efficiency and productivity. By analyzing cycle time more closely, we

can identify areas where delays may occur and uncover opportunities to streamline processes. This

approach allows us to prioritize what truly matters, improve our workflows, and ultimately

increase productivity and success for everyone involved.

A. Small size

𝑇𝑜𝑡𝑎𝑙 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑇𝑖𝑚𝑒

𝐶𝑦𝑐𝑙𝑒 𝑇𝑖𝑚𝑒 =
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑈𝑛𝑖𝑡𝑠 𝑃𝑟𝑜𝑑𝑢𝑐𝑒𝑑

7,475 𝑠𝑒𝑐𝑜𝑛𝑑𝑠
𝐶𝑦𝑐𝑙𝑒 𝑇𝑖𝑚𝑒 =
23 𝑢𝑛𝑖𝑡𝑠

= 325 seconds/unit

B. Medium size

𝑇𝑜𝑡𝑎𝑙 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑇𝑖𝑚𝑒

𝐶𝑦𝑐𝑙𝑒 𝑇𝑖𝑚𝑒 =
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑈𝑛𝑖𝑡𝑠 𝑃𝑟𝑜𝑑𝑢𝑐𝑒𝑑

33,440 𝑠𝑒𝑐𝑜𝑛𝑑𝑠
𝐶𝑦𝑐𝑙𝑒 𝑇𝑖𝑚𝑒 =
95 𝑢𝑛𝑖𝑡𝑠

190
 = 352 seconds/unit

C. Large size

𝑇𝑜𝑡𝑎𝑙 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑇𝑖𝑚𝑒

𝐶𝑦𝑐𝑙𝑒 𝑇𝑖𝑚𝑒 =
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑈𝑛𝑖𝑡𝑠 𝑃𝑟𝑜𝑑𝑢𝑐𝑒𝑑

13,394 𝑠𝑒𝑐𝑜𝑛𝑑𝑠
𝐶𝑦𝑐𝑙𝑒 𝑇𝑖𝑚𝑒 =
37 𝑢𝑛𝑖𝑡𝑠

= 362 seconds/unit

4.3.2 Number of Workstations

The number of workstations corresponds to the number of workers assigned to each process,

along with the necessary facilities and equipment for manufacturing. A workstation is a designated

area where specific tasks are performed within the production process.

Table 91: Number of Workstation

Workstation No. Operation Personnel Assigned Number of Workers

1 Machine Operator 3

2 Machine Operator 1

3 Cutting, Workers 6
Sewing

TOTAL 10

191
 ∑𝐶𝑦𝑐𝑙𝑒 𝑇𝑖𝑚𝑒
𝑁=
𝑇𝑎𝑘𝑡 𝑇𝑖𝑚𝑒

1,039 𝑠𝑒𝑐𝑜𝑛𝑑𝑠
𝑁=
371.61 𝑠𝑒𝑐𝑜𝑛𝑑𝑠

= 2.80 ≈ 3 workstations

4.3.3 Line Efficiency

The line efficiency is the number of hours when a high-volume machine is producing eco-

friendly coconut coir bags, divided by the number of hours spent staffing the production line.

𝑇𝑜𝑡𝑎𝑙 𝑇𝑎𝑠𝑘 𝑇𝑖𝑚𝑒

𝐿𝑖𝑛𝑒 𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦 = 𝑥100%
(𝑁𝑜. 𝑜𝑓 𝑊𝑜𝑟𝑘𝑠𝑡𝑎𝑡𝑖𝑜𝑛𝑠) 𝑥 𝑇𝑎𝑘𝑡 𝑇𝑖𝑚𝑒

1,039 𝑠𝑒𝑐𝑜𝑛𝑑𝑠
𝐿𝑖𝑛𝑒 𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦 = 𝑥100%
(3)𝑥 371.61 𝑠𝑒𝑐𝑜𝑛𝑑𝑠

𝐿𝑖𝑛𝑒 𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦 = 93.20%

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4.3.4 Final Output

This section outlines the daily production capacity of the workforce, derived from the predicted

production time per unit and the available time for production each day.

Table 92: Final Output

Product Cycle Time Demand (%) Available time Total Capacity

(seconds) for 2 days per day (packs)
(seconds)

Small size 325 15% 23

Medium size 352 61% 57,600 95

Large size 362 24% 37

Final Production Capacity Computation:

𝐴𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑇𝑖𝑚𝑒

𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦 =
Cycle Time

57,600 𝑠𝑒𝑐𝑜𝑛𝑑𝑠
𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦 =
371.61 𝑠𝑒𝑐𝑜𝑛𝑑𝑠

𝑷𝒓𝒐𝒅𝒖𝒄𝒕𝒊𝒐𝒏 𝑪𝒂𝒑𝒂𝒄𝒊𝒕𝒚 = 𝟏𝟓𝟓 𝒃𝒂𝒈𝒔 𝒑𝒆𝒓 𝒅𝒂𝒚

The production capacity, based on the limiting factor between cycle time and takt time, is roughly

155 units per day. This indicates that, assuming optimal conditions and full use of available time,

the production line can produce around 155 units daily.

193
4.4 Production Capacity

Production capacity defines the volume of eco-friendly coconut coir bags that can be

generated by a production facility or enterprise in a given period. It represents the maximum

achievable output of a manufacturing operation, measured in units of coconut coir bags produced

each period. Understanding our production capacity for coconut coir bags enables us to optimize

production planning and scheduling, ensuring efficient operations and meeting market demand.

4.4.1 Manpower

The total number of people employed in a company or available for a specific project

assignment or work.

Manpower Productivity

𝑀𝑎𝑛𝑝𝑜𝑤𝑒𝑟 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦 = (𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑊𝑜𝑟𝑘𝑒𝑟𝑠) × (𝑆ℎ𝑖𝑓𝑡𝑠 𝑝𝑒𝑟 𝐷𝑎𝑦) ×

(𝑊𝑜𝑟𝑘𝑖𝑛𝑔 𝐻𝑜𝑢𝑟𝑠 𝑝𝑒𝑟 𝑆ℎ𝑖𝑓𝑡) × (𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦)

𝑀𝑎𝑛𝑝𝑜𝑤𝑒𝑟 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦 = (9) × (1) × (8 𝐻𝑜𝑢𝑟𝑠) × (93.20%)

= 𝟔𝟕. 𝟏𝟎 𝒘𝒐𝒓𝒌𝒆𝒓 − 𝒉𝒐𝒖𝒓𝒔 𝒑𝒆𝒓 𝒅𝒂𝒚

Therefore, workforce has 67.10 effective working hours per day to produce coconut coir bags.

194
4.4.2 Machine

Table 93: Projected Annual Supply of eCOIR BAGs product size

Product Cycle Available Total Capacity Working Annual

Time time for 2 for 2 days Days in a Supply

(seconds) days (seconds) (units) year (units)

Small size 325 23 7,222

Medium size 352 57,600 95 314 29,830

Large size 362 37 11,618

The projected annual supply of eCOIR BAGs is based on cycle time, daily production

capacity, and working days per year. Small-size bags, with a cycle time of 185.81 seconds, produce

23 units per day, totaling 7,222 units annually. Medium-size bags, with a 185.81 seconds cycle

time, yield 95 units daily, resulting in 29,830 units per year. Large-size bags, taking 185.81 seconds

per unit, produce 37 units per day, reaching 11,618 units annually. The variations in cycle time

and production rates influence the total output, with medium-size bags having the highest annual

supply.

195
4.4.3 Space Capacity

Space capacity refers to the total available area within the eCOIR BAGs facility,

encompassing the physical structure, including walls, floors, and ceilings, as well as the space

occupied by furnishings and other objects.

Space Capacity = Usable square footage space × Clear height

Space Capacity = 134.81 m2 x 8 m

Space Capacity = 1,078.48 m3

4.5 Plant Layout and Location

The plant layout and location of the eCOIR BAG production facility play a crucial role

in ensuring efficient operations, cost-effectiveness, and sustainability. The plant layout is designed

to optimize workflow by strategically arranging machinery, workstations, and storage areas to

minimize material handling, reduce production time, and enhance worker safety. Key sections

include raw material storage, fiber extraction, molding, drying, finishing, and packaging areas.

The plant location is carefully chosen considering factors such as the availability of

coconut husks, accessibility to skilled labor, proximity to target markets, and transportation

networks. Additionally, the location aligns with the municipality’s commitment to sustainability

and single-use plastic reduction. By selecting a site near raw material sources and integrating an

efficient layout, eCOIR BAG aims to streamline production, lower costs, and contribute to the

local economy while promoting eco-friendly practices.

196
 Figure 45: Front Perspective of eCOIR BAG Production Facility

Figure 46: Left side Perspective of eCOIR BAG Production Facility

197
4.5.1 Location Plan and Analysis

The location of the establishment will be Barangay Kampingganon, Bantayan, Cebu. It is

near the main highway, making it easy to transport materials and deliver products. The area has

many coconut trees, based on data from the Philippine Crop Insurance Corporation, which are

important for making eco-friendly coconut coir bags. Barangay Kampingganon is part of the

Municipality of Bantayan, which is close to local markets, suppliers, and business partners. This

helps the business get raw materials easily and sell products faster. The location is good for

production and will support the growth of the business. The location of the company is shown in

the diagram below.

Figure 47: Map of Space Location

198
Figure 48: Commercial Space Location

Figure 49: Physical Store Location

199
4.5.2 Structural Limitations

The eCOIR BAG production facility considers structural limitations related to its space

requirements, including functional areas such as the storage area, production area, office space,

and packaging section. Other structural constraints are also taken into account, as these factors

play an important role in the overall production design and workflow efficiency.

4.5.3 Space Constraints

The eCOIR BAG Production Facility is a single- storey building designed to accommodate

the production process, storage, and office needs. The estimated dimensions of the facility are

approximately - feet wide by - feet long, with a height of about - feet. This provides a total area of

square meter, offering enough space for production activities, raw material storage, and

administrative work.

Table 94: Space Constraints of eCOIR BAG Business Facility

Functional Area Function

Production Area The area where eCOIR BAGs are manufactured and assembled.

Storage Area A space for storing raw materials and finished eCOIR BAGs ready

for delivery.

Office Area An area for administrative tasks, customer transactions, and staff

meetings.

Electrical Room This is where the generated electrical supply was maintained.

The table above shows the main areas needed for the eCOIR BAG Production Facility,

making sure the available space is used well.

200
4.5.4 Space Requirements

Every business needs space for its equipment and operations. For the eCOIR BAG

business, it’s important to know the size of the equipment and materials to estimate the total space

required.

Table 95: Space Requirements of eCOIR Production

Functional Area Function Space Area

I Production Area The area where eCOIR BAGs are manufactured and 67.86 sqm

assembled.

II Storage A space for storing raw materials and finished 33 sqm

eCOIR BAGs ready for delivery.

III Office Area An area for administrative tasks, customer 6 sqm

transactions, and staff meetings.

201
4.5.4.1 Production Facilities and Equipment

One of the most important components of creating an optimized business is the facility.

The eCOIR business includes a wide variety of facility types and functions. The facilities utilized

to run the firm are determined by the operations used. The technical expenses are the costs of

purchasing the necessary equipment for the operation. The equipment is classified into two

categories: production-related equipment and administration-related equipment. The facilities of

the business to run the day-to-day operations are listed in the tables below.

Table 96: Production Machineries

Production Machineries

Facilities and Image Function

Equipment
Used to apply adhesive

uniformly to coconut coir

Spraying Machine fibers during the eCOIR BAG

production process.

Facilitates the stitching of bag

components with high

Sewing Machine precision and speed.

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 Extracts high-quality coir

fibers for further processing.

Coir Defibering Machine

Used to cool down the

temperature of pressed

Conveyor Dryer Machine coconut coir and dry the

adhesive.

Compressed coir material into

canvas.

Hydraulic Press Machine

Use to cut the coir canvas

Electric cutter

Use to weigh the coir to

required standard.

Weighing scale

203
Table 97: Office Equipment

Office Equipment

Facilities and Equipment Image Function

Used for working on

documents, checking emails,
PC browsing the internet, and
doing other office tasks.

Used to print papers, such as

reports, contracts, or anything
Printer else that needs to be in hard
copy.
Includes basic items like
paper, pens, and folders that
Office Supply are needed for daily work in
the office

Keeps the office cool and

comfortable, especially when
it's hot outside, helping
everyone focus better on their
Aircon
work.

204
Table 98:Comfort Room Area

Comfort room Area

Facilities and Equipment Image Function

Use for cleaning after the

Toilet paper operation.

Use for storing the garbage

inside the comfort room.

Trash bin

Used for disinfecting external

Alcohol surfaces including hands

A soap used for washing and

sanitizing the hand before and

Hand washing soap
after operation

205
4.5.4.2 Materials Inventory

The inventory is a list of all materials, including depreciable and consumable goods.

Maintaining and balancing the appropriate stock in your stockroom requires stock. It is an

accumulation of provisions that must be produced or manufactured, and if not used or consumed,

must be stored in a particular location.

Table 99: Materials Inventory of Raw Ingredients

Raw Materials

Consumables Storage Method Unit

Coconut coir fiber Dry Storage Method Kilograms

Glue Adhesive Container Millimeters

Heavy-duty Thread Spool Rolls

Cotton Webbing Shelved Storage Meters

Table 100: Materials Inventory Consumables

Consumables

Consumables Frequency of Inventory

Water Monthly

Office Supply Monthly

Gasoline/Diesel Daily

Handwashing Soap Weekly

Alcohol Weekly

Trash Bag Monthly

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4.5.4.3 Aisle Allowance, Food Services, Restrooms and Parking Space

In considering width of aisle, ensure that the aisles within the production and storage areas

are a minimum of 4 to 6 feet wide to facilitate the movement of raw materials like coconut coir,

work-in-progress items, and finished eCOIR BAGs. Adequate aisle width will allow employees to

safely navigate the space and promote the efficient transport of materials throughout the production

process.

Storage & Accessibility

Raw Materials Aisle. Allocate space for storing bundles of coconut coir, ensuring easy

access for shredding and processing.

Production Flow Aisle. Arrange workstations in a linear flow, from coir processing to

bag assembly, to minimize unnecessary movement.

Finished Goods Aisle. Designate an area for storing packed eCOIR BAGs, with

shelving or pallets for easy organization before distribution.

Equipment & Worker Safety. Keep aisles clutter-free to prevent accidents. - Clearly

mark walkways and work zones using painted floor lines. Position waste collection

bins strategically to manage coir dust and scraps.

Shipping & Receiving Aisle. Set up a separate loading/unloading zone to streamline

the movement of raw materials coming in and finished products going out. - Ensure

easy access to this aisle for transport vehicles.

Office Space for eCOIR BAGs

Employee Workspace. Design the office layout to support both collaboration and

focused work. Ensure sufficient space for desks, filing systems, and office equipment

to maintain an organized and productive environment.

207
 Meeting Rooms. Provide meeting spaces for team discussions, client meetings, and

strategic planning. The number and size of meeting rooms should align with the

company’s operational needs.

Break Rooms and Pantry. Employees need a comfortable space to rest and eat. A

break room should include amenities to enhance employee well-being.

Restrooms. Ensure adequate restroom facilities based on the number of employees. If

the facility operates in multiple shifts, consider providing more than one set of

restrooms per floor or area.

Parking Space

• Employee Parking. Parking should be conveniently located near the building while

avoiding congestion. The number of spaces should be determined based on the total

employees and office staff.

• Visitor and Delivery Parking. Designate specific areas for visitors and delivery

vehicles to ensure smooth operations. These spaces should be easily accessible without

disrupting regular warehouse traffic.

208
4.5.5 Activity Relationship Diagrams

The graph of the space relationship shows this relationship, such as divisions, workplaces,

or administrative zones between each station. In order to determine the optimum linked location,

it groups the numerous zones and looks into their proximity and course of action. An activity

relationship chart is a tabular way to show how closely related the various departments of the

company are. There are six different closeness ratings which may be assigned to a certain

department. The table below displays the ARC closeness code and its description.

Table 101: Rating on Relationship of Space Acquired

209
Figure 50: Activity Relationship Diagram of Production Area

Figure 51: Spatial Analysis-Production Area

210
Figure 52: Activity Relationship Diagram-Employee Area

Figure 53: Spatial Analysis-Employee Area

Figure 54: Activity Relationship Diagram-Physical Store

211
 Figure 55: Spatial Analysis-Physical Store

4.5.6 Space Allocations

The quantity of lot area designated for a particular department is known as the space

allocation. Some departments need more lot space than others, and one of the reasons for this is

the nature of the work they do and the amount of people who work there.

Table 102: Space Allocation in Production Facility

PRODUCTION FACILITY

Areas Percentage of Occupied Space Occupied Space

Allocation Acquired (sqm) Acquired (m3)

Production Area 45.07% 60.75 182.25

Non-Production 6.68% 9 27

Area

Storage Area 24.49% 33 99

TOTAL 100% 134.81 sqm 404.43 m3

212
Table 103: Space Allocation for Physical Store

PHYSICAL STORE

Areas Percentage of Occupied Space Occupied Space

Allocation Acquired (sqm) Acquired (m3)

Shelves 13.33% 4 sqm 12 m3

Cashier 13.33% 4 sqm 12 m3

Storage Room 13.33% 4 sqm 12 m3

Space Area 60% 18 sqm 54 m3

TOTAL 100% 30 sqm 90 m3

4.5.7 Summative Space Requirements and Allocations

This section presents the summary of space requirements and its allocation of the spaces

required in a given facility.

Table 104: Summative Space Requirement

Areas Occupied Space Acquired

(sqm)
Production Area 93.81

Storage Area 12

Non-Production Area 29

Total 134.81 sqm

4.5.8 Layout Type

The facility layout adopts a hybrid configuration, integrating both process-oriented and

product-based layouts to optimize workflow and resource utilization. The initial processing stages,

including extraction, weighing, and spraying, follow a process layout, ensuring that each task is

213
conducted in designated workstations to enhance precision and efficiency. This setup minimizes

material handling and maintains a systematic production flow.

As the raw materials move through production, the layout transitions into a product-oriented

arrangement for pressing, drying, cutting, and sewing. These sequential operations are aligned to

create a smooth and continuous flow, reducing delays and increasing overall productivity. The

structured design ensures that each stage seamlessly progresses to the next, enhancing

manufacturing efficiency.

Additionally, storage areas and packaging sections are strategically positioned near the

final stages of production, facilitating the organized handling of materials and finished products.

Defined pathways allow for the smooth transport of goods, improving space utilization and

operational effectiveness.

By implementing this hybrid layout, the facility maximizes efficiency, scalability, and streamlined

production, ensuring a well-organized and effective manufacturing process for eCOIR BAGs.

4.5.9 Layout of Functional Areas

Figure 56: Functional Area Manufacturing Areas

214
4.5.10 Floor Plan

Figure 57: Floor Plan -Manufacturing Site

Legend:
WS1- Raw Materials WS4-Spraying Area WS8-Sewing Area
Storage Area WS5- Pressing Area WS9-Finished
WS2- Extractor Area WS6-Drying Area Products Storage
WS3-Weighing Area WS7-Cutting Area Area

215
 Figure 58: Floor Plan -Physical Store

4.5.11 Floor Plan with Work Flow

Figure 59: Floor Plan with Work Flow- Manufacturing Site

216
 Figure 60: Floor Plan with Work Flow- Physical Store
Legend:

Entrance

To Cashier

To Storage

217
4.5.12 Simulation Analysis

This step involves identifying key system components to be modeled and assessing

performance measures to support decision-making. Before accepting or rejecting a customer's

change request, the company must first analyze critical factors such as budget allocation and the

time required for implementation. This ensures a thorough evaluation of feasibility and potential

impact on operations. The analysis is illustrated

Figure 61: Simulation Analysis

218
4.6 Work Systems Design

The design of eCOIR’s works systems include elements such as the layout of the

workspace, the organization of different tasks, and the scheduling of tasks. It should also include

the development of systems for communication, including methods for both internal and external

communication. In addition, the design of works systems should include the implementation of

processes to ensure that all employees are aware of their roles and responsibilities. Finally, the

design of works systems should also include a system for tracking and evaluating the performance

of employees, as well as a system for monitoring and managing the overall performance of the

organization

Figure 62: eCOIR BAG Facility

219
4.6.1 Workstation Design

The eCOIR BAG manufacturing process is structured into distinct workstations, each

designed to optimize a specific stage of production. The process begins at the Raw Material

Storage, where coconut husks are collected and sorted. The Extraction workstation, where coconut

husks are processed to extract coir fibers. These fibers are then transferred to the Weighing station

to ensure precise material distribution before moving to the Spraying workstation, where adhesive

or natural binders are applied to enhance fiber cohesion.

Next, the fibers undergo Pressing, where hydraulic machines compact them into firm,

structured sheets for durability. After pressing, the sheets move to the Drying workstation, where

they are air-dried or heat-dried to remove excess moisture and strengthen their structure.

Once dried, the coir sheets proceed to the Cutting workstation, where they are trimmed to

the required dimensions for bag production. The cut pieces then move to the Sewing workstations

(Sewing 1-5), where they are stitched together to form the final bag shape, ensuring reinforced

edges and securely attached handles.

Finally, the finished bags are sent to the Storage Area before being packed and prepared

for distribution. This structured workstation layout optimizes material flow, minimizes

bottlenecks, and ensures high production efficiency.

220
 Figure 63: Raw Material Storage

Figure 64: Workstation: Extraction

Figure 65: Workstation: Weighing of Coir

221
Figure 66: Workstation: Spraying Adhesive on Coir

Figure 67: Workstation: Pressing

222
Figure 68: Workstation: Drying

Figure 69: Workstation: Cutting

223
 Figure 70: Workstation: Stitching

Figure 71: Storage of Final Product

224
 PHYSICAL STORE

Figure 72: Front View of Physical Store

225
4.6.2 Work Environment

A work environment refers to the physical, social, and psychological conditions in which

employees perform their job responsibilities. It encompasses factors such as the layout of the

workspace, safety measures, organizational culture, and interpersonal relationships that impact

employee productivity, satisfaction, and well-being.

4.6.3 Lumens Requirement

According to OSHA Lighting Regulations, there must be adequate lighting in the

workplace to ensure that employees can see well and feel comfortable working. Changes in office

lighting have an impact on staff productivity. The overall illumination intensity should be evenly

distributed and maintained to avoid contrast and shadows, flicker, and direct or reflected glare.

Table 105: Lumens Requirements

Number
Approx. Lumens of
Functional Area Illumination Required (lux)
Required Lamps
(LED)
Production Area
300 lux 6,000 lm 2
(Machines)
Sewing 500 lux 1,0000 lm 1
Office/Administrative
300 lux 6,000 lm 1
Space

4.6.4 Ventilation Requirement

The company will install effective ventilation to maintain air quality, regulate temperature,

and create a safe and comfortable working environment, as well as avoid the accumulation of dust,

fumes, or odors from raw materials and manufacturing operations.

226
Table 106: Functional Area with Open Area

Functional Area Operable Open Areas Quantity

Pressing Industrial Exhaust Fans 1
Extraction Exhaust Fans 1
Cutting & Finishing Area Exhaust Fans 1
Sewing Exhaust Fans 1
Packaging & Dispatch Area Natural Windows 2
Office/Administrative Space AC Systems 1
Physical Store (Retail Display) Electric fan 1

4.6.5 Noise Level

Reducing exposure to excessive noise is essential to preserving a healthy and safe

workplace. Long-term exposure to loud noises can cause headaches, hearing loss, and other

negative consequences. Workers must work in a setting that enables them to focus on their work

without interruptions and interact with coworkers in an efficient manner. Checking the noise levels

in the eCOIR BAG manufacturing area and physical store is important to keep the environment

safe and within the allowed limits. The table below shows the standards for acceptable noise levels.

Table 107: The standard Noise level

Noise Level (dBA) Permissible Exposure Duration (Hours)

60–90 8
92 6
95 4
97 3
100 2
102 1.5
103 1

227
 In the manufacturing environment, various equipment contributes to the overall noise

level. It's essential to monitor these levels to ensure they do not exceed OSHA's permissible

limits

Table 108: Noise Levels in the eCOIR BAG Manufacturing Facility

Equipment Noise Level (dBA) Exposure Duration (Hours)

Coconut Husk Defibering 85 8

Machine

Coir Mattress Hydraulic Press 88 6

Industrial Sewing Machine 70 8

Spraying Machine 65 8

Drying Machine 65 6
Table 109: Noise Levels in the eCOIR BAG Physical Store

Source Noise Level (dBA) Exposure Duration (Hours)

Background Music 55 8

Electric Fan 65 8

Foot Traffic (e.g., walking, 45 8

shuffling)

Delivery or Restocking 70 Intermittent

Noise (e.g., carts, boxes)

4.6.6 Temperature

Maintaining appropriate temperature is important for ensuring the health, comfort, and

productivity of personnel within the eCOIR BAG manufacturing facility and physical store.

Extreme temperature conditions can significantly influence the quality of work, the efficiency of

228
employees, and the total output of products. The table below provides details about the type and

quantity of temperature control equipment required for each functional area.

Table 110: Temperature

Functional Areas Temperature Quantity

Control Unit Type

Production Area Exhaust Fan 1

Office of the CEO Air Conditioning 1

Retail Store Ceiling Fan 2

The eCOIR BAGS company has established safety protocols to respond effectively to injuries,

accidents, and other emergencies that may occur in its production facilities. This ensures a safe

environment for employees, visitors, and customers.

1. Ensure first aid kits with essential supplies are available in all work areas.

2. Provide regular first aid, CPR, and AED training for all employees.

3. Have a qualified medical professional or trained first aider on-site during working hours.

4. Store coconut coir and materials in secure, moisture- and heat-free areas.

5. Install ventilation and dust extraction systems to reduce respiratory risks.

6. Educate workers on coir handling hazards and safety measures.

7. Supply protective gear (gloves, goggles, masks, hearing protection) and ensure use.

8. Ensure machinery is properly guarded and maintained.

9. Implement fire safety measures, including extinguishers, sprinklers, and alarms, and train

staff.

10. Develop waste management protocols for safe disposal of coir by-products.

229
4.7 Master Production Schedule

A Master Production Schedule (MPS) is a detailed plan that specifies the production needs for manufacturing operations over a

set timeframe, usually spanning from a few weeks to several months. It acts as an essential tool for planning and scheduling production,

ensuring that manufacturing activities are in sync with customer demand, available inventory, and capacity limitation.

Table 111: Master Production Schedule

Services November Total December Total January Total

Week 1 Week 2 Week 3 Week 4 Week 1 Week 2 Week 3 Week 4 Week 1 Week 2 Week 3 Week 4
Small Size 69 69 69 69 276 69 69 69 69 276 69 69 69 69 276
Medium
285 285 285 285 1140 285 285 285 285 1140 285 285 285 285 1140
Size
Large Size 111 111 111 111 444 111 111 111 111 444 111 111 111 111 444

Total 465 465 465 465 1860 465 465 465 465 1860 465 465 465 465 1860

The monthly production schedule indicates a consistent output for all product sizes. Each week, 69 units of small, 285 units of

medium, and 111 units of large sizes are produced. By the end of the month, the total production amounts to 276 units of small, 1,140

units of medium, and 444 units of large sizes. The production plan ensures a steady supply of each product category, with the medium

size having the highest production volume, followed by the large and small

230
4.8 Materials Requirement Planning

Materials requirement planning (MRP) is a system for calculating the materials and

components needed to manufacture the product.

4.8.1 Product Structure Tree

A Product Structure Tree is a hierarchical diagram that visually represents the components

and sub-components required to manufacture a product. It breaks down the product into different

levels, showing how raw materials, semi-finished parts, and assemblies contribute to the final

product. This structure is essential for inventory management, cost estimation, production

planning, and material requirement planning (MRP).

For eCOIR BAGs, the Product Structure Tree outlines the primary materials, such as

coconut coir fabric, cotton webbing, stitching components, and reinforcements, ensuring efficient

assembly and quality control.

Figure 73: Product Structure Tree

231
4.8.2 Materials Specification

This section provides a detailed overview of the materials used in the production of the

coconut coir bag, known as the eCOIR BAG, and explains their intended applications. It outlines

the specific components and raw materials incorporated into the manufacturing process,

emphasizing the unique properties of coconut coir fiber that make it suitable for this eco-friendly

product.

Table 112: Materials Specification

Materials/Tools Image Properties Applications

● Strong The main material used in

Coconut coir ● durable making the coconut coir
fiber ● moisture- bag.
resistant
● eco-friendly
● biodegradable.

● High adhesive It is used to bind the coir

strength together and hold it in
Glue Adhesive ● Water Resistant place.
● quick-drying
● water-resistant.

● Flexible It is used as a bag handle

● durable and a structure support.
Textile ● lightweight
(Webbing) ● Rough texture

232
 ● High tensile The material used to sew
strength the coconut coir mat and
Heavy duty ● smooth texture the webbing together.
Thread ● thick
● suitable for
sewing the
webbing into coir
mat

Spraying ● Battery powered Used to apply adhesive

Machine ● Manual Operated uniformly to coconut coir
● Durable brass fibers during the eCOIR
fitting BAG production process.
● 4 Pcs Nozzle set.

Sewing ● Automatic Facilitates the stitching of

Machine Lubricating bag components with high
● 5mm stitch precision and speed.
length
● 5,500 sti/min.
● Needle bar stroke
of 30.7 mm

Coir Defibering ● 500 kg/hour of Extracts high-quality coir

Machine husk fibers for further
processing.

Conveyor ● Adjustable Dry coconut fibers,

Drying Temperature & removing excess
Machine Airflow Control moisture, and the
integrated cooling fan
ensures optimal
temperature control,
preventing fiber damage a

233
 Electric Cutter ● Sharp circular For precision cutting of
blade coir mats, ensuring
● Electric motor efficient, uniform, and
● Interchangeable
accurate cuts for eCOIR
blades
BAGs

Hydraulic ● High Compressed coir material

Press Machine compression into mats.
force
● durable

4.8.3 Parts List

This section includes a list of materials used to manufacture the product, as well as a

description, unit conversion, and material code. This includes the number of raw resources

needed to produce the desired yield.

Table 113: Part List

Code Materials/Tools Quantity

CH Coconut Husk 7.5 kg

CW Cotton Webbing 6 meters

HDT Heavy-duty thread 20.5 m

270 ml
GA Glue Adhesive

EB 3 pcs
Logo/Tag label

EC 2 pc
Electrical Cutter

234
 WC 1 pc
Weight scales

4.8.4 Bill of Materials

The bill of materials, also known as the product structure in eCOIR, is a list of the raw

materials, sub-assemblies, pertinent parts, sub-components, parts, and volumes required to

generate one unit of a final output.

Table 114: Bill of Materials of eCOIR BAG

Total Cost of Materials for Small

Products Item Name Quantity used Unit Total Cost per unit

Coconut Husk 2 kg ₱2.68

Cotton webbing 1.5 m ₱18.00
Heavy-duty thread 6 m ₱5.00
Small Glue Adhesive 90 ml ₱ 10.80
Tag/logo 1 pcs. ₱2.00
Direct Labor 10 workers ₱31.00
Total ₱69.48
Total Cost of Materials for Medium

Products Item Name Quantity used Unit Total Cost per unit

Coconut Husk 2.5 kg ₱3.35

Cotton webbing 1.5 m ₱18.00
Heavy-duty thread 7 m ₱5.83
Medium Glue Adhesive 90 ml ₱10.00
Tag/logo 1 pcs. ₱2.00
Direct Labor 10 workers ₱31.00
Total ₱70.18
Total Cost of Materials for Large
Products Item Name Quantity used Unit Total Cost per unit

235
 Coconut Husk 3 kg ₱4.02
Cotton webbing 1.7 m ₱20.40
Heavy-duty thread 7.5 m ₱6.25
Large Glue Adhesive 90 ml ₱10.00
Tag/logo 1 pcs. ₱2.00
Direct Labor 10 workers ₱31.00
Total ₱73.62

4.9 Product Costing and Pricing

Product Costing and Pricing refers to the process of determining the total expenses incurred

in the production of a product and setting a competitive selling price based on these costs. It

involves calculating direct costs and indirect costs. Pricing strategies are then applied to ensure

profitability while remaining competitive in the market.

4.9.1 Cost of Materials

The cost of materials represents the total expense of all resources used to manufacture the

product, including both direct and indirect materials. Direct materials are specifically tied to the

production of eCOIR BAGs.

Table 115: Manufacturing Material

Price per Total

Name Quantity Unit
Unit (Php) (Php)
Machines and Equipment
Coir Defibering Machine pc.
1 79,000 79,000
Weighing Scale pc.
1 1,200 1,200

236
 Spraying Machine pc.
1 22,583 22,583
Hydraulic Press pc.
1 39,473 39,473
Drying Machine pc.
1 34,752 34,752
Electric Cutter pcs.
2 2,811 5,622
Sewing Machine pcs.
5 26,000 130,000
Trolley Push Cart pcs.
2 529 1,058
Industrial Table (2 x 1 m) pc.
2 7,973 15,946
Industrial Table (1 x 0.5 m) pc.
6 3,240 19,440
Storage Box (1x0.70x
pc.
0.095m) 1 3,880 3,880
Storage Box (1x0.70x0.5m) pc.
1 2,605 2,605
Flat Belt Conveyor (1x0.5 m) pcs.
2 11,605 23,210
Total
378,769

Table 116: Distribution Materials

Price per Unit

Name Quantity Unit Total (Php)
(Php)
Distribution Materials
Canter truck 1 pc. 695,000 PHP 695,000.00
Total 695,000.00

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Table 117: Emergency and Safety Equipment

Price per
Name Quantity Unit Unit Total (Php)
(Php)
Emergency Equipment
Fire
6 Pcs. 1,138 6,828
Extinguisher
First Aid Kit 2 Pcs. 500 1,000
7,828
Personal Protective Equipment
Gloves 1 dozen 196 196
Safety Boots 12 pcs. 299 3,588
Mask 1 box 349 349
Ear Plugs 12 pcs. 10 120
Visibility
12 pcs. 23 276
Vests
Safety Glasses 12 pcs. 55 660
Protective
12 pcs. 57 684
Apron
5,873
Security
CCTV Camera 4 pcs. 339 1,356
Fire alarm 2 pcs. 450 900
2,256

Table 118: Office, Garbage and Safe Equipment

Total
Description Unit Price Quantity
Amount
Office Equipment
Printer 9,500 1 9,500
Laptop 20,470 1 20,470
Modem 1,100 1 1,100
Tables (Office) 5,000 1 5,000
Tables (Office and Store) 1,500 2 3,000
Steel Cabinet 2,999 1 2,999
Chairs (Sewing) 580 5 2,900
Chairs (Office and Store) 420 7 2,938
Cashier Machine 4,780 1 4,780
Aircon 13,998 1 13,998
Fluorescent Lights 300 4 1,200
238
 Electric Fan 2,449 1 2,449
Water Dispenser 1,200 2 2,400
Storage Rack 1,969 6 11,814
Emergency Equipment
Fire Extinguisher 2,200 1 2,200
First Aid Kit 500 2 1,000
Cleaning Tools and Equipment
Trash Bin 350 6 2,100
Broom Stick 80 4 320
Dustpan 109 2 218
Floor Map 194 2 388
Handwashing Sinks 3,000 1 3,000
Hand Soap Dispensers 229 2 458
Cleaning Brushes 200 2 400
TOTAL 94,632

Table 119: Summary of Facilities and Equipment Cost

Total
Facilities and Equipment Expenses
(₱)
Manufacturing Materials 378,769
Distribution Materials 695,000
Emergency and Safety
15,957
Equipment
Office, Garbage and Safe
94,632
Equipment

4.9.2 Cost of Labor

The cost of labor section details the financial resources allocated for compensating workers

involved in the production and operations of the business. This section distinguishes between

direct labor costs, which refer to wages paid to employees directly involved in manufacturing or

assembling the product, and indirect labor costs, which cover wages for support roles that

facilitate production but do not directly handle the product. The production operates on an 8-hour

daily shift, suitable the standard 8-hour workday.

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Table 120: Direct Labor Costs and Indirect Cost

ANNUAL SALARY
SALARY BREAKDOWN FOR YEAR 1 (2026)
Direct Labor
MONTHLY
SALARY
NO. OF Hours per Shifts per PER TOTAL
JOB WORKER day day WORKER SALARY Annual Salary
Production Worker (Sewing and
cutting) 229 8 1 11520 2370150 138,240.00
Machine Operator 200 8 1 11520 6,000,000 138,240.00
Operation Specialist 0 8 1 25000 0 300,000.00
Indirect Labor
Sales Person 1 8 1 11520 10,350 138,240.00
Driver/Utility personnel 1 8 1 11520 10,350 138,240.00
General Manager 1 8 2 35000 10,350 420,000.00
Administrative Officer 1 8 3 25000 10,350 300,000.00
TOTAL 1,572,960.00

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Table 121: Summary of Labor Costs

Summary of Labor Costs

Direct Labor Costs Php 576,480.00

Indirect Labor Costs Php 996,480.00

Total Labor Costs Php 1,572,960.00

4.9.3 Cost of Overhead (percentage standard)

Cost of overhead is the costs for running the business such as, rent, utilities, water,

electricity, maintenance expenses, accounting fees, advertising fees and etc.

Table 122: Total Monthly Rental Expense Rate

Rate/Month (₱)
Expense
2026 2027 2028
Lease Obligations (10%) 21,478.00 21,048.44 20,627.47
Rent Expenses 24,000.00 24,720.00 25,461.60
Total 45,478.00 45,768.44 46,089.07

Table 123: Electricity Expenses

Electricity Consumptions
Office Power Cost per Total Cost Monthly Annual
Equipment Quantity (kwh) Rate/kwh unit (Php) per day Cost Cost

Aircon 1 1 8.15 8.15 65.20 1,564.80 18,777.60

Water
Dispenser 2 0.6 8.15 4.89 39.12 938.88 11,266.56
Fluorescent
lamp 2 0.036 8.15 0.29 2.35 56.33 675.99

Internet 1 0.015 8.15 0.12 0.98 23.47 281.66

Printer 1 0.5 8.15 4.08 32.60 782.40 9,388.80

Personal
Computer 1 0.25 8.15 2.04 16.30 391.20 4,694.40

Electric Fan 1 0.075 8.15 0.61 4.89 117.36 1,408.32

Ventilation 4 0.05 8.15 0.41 3.26 78.24 938.88

Total 164.70 3,952.68 47,432.22

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Table 124: Water Expenses

Water Consumptions

Cost per cubic Total Cost per Monthly Annual

Category Quantity/day Unit
meter day (Php) Cost Cost

cubic
Mineral Water 0.031 meter 1,320.00 40.92 982.08 11,784.96
Employee cubic
Hygiene 0.8 meter 25.00 20.00 480.00 5,760.00
Factory Water cubic
Usage 2.7 meter 25.00 67.50 1,620.00 19,440.00

Total 3,082.08 36,984.96

Table 125: Distribution Fuel Expenses

Gas Consumptions

Logistics and delivery 7.5 liters 64.75 485.63 11,655.00 139,860.00

Total 11,655.00 139,860.00

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Table 126: Maintenance Cost

Maintenance Cost
Appliance Parts Costs (₱) Equipment
Engine 200000 Appliance Parts Costs (₱)
Brakes 2877.76 Motor
2,736.00
Canter truck Tires 895 Cutter Blades
850.00
Defibering Feeding
Battery 12905 machine mechanism 2,700.00

Dash Board
7500 Mesh
Instruments 500.00

Battery 1930 Hydraulic Fluid

1,100.00
Brakes 150 Hydraulic press Hydraulic Hoses
1,700.00
Oil 180 Hydraulic Filter
1,700.00
Sewing
Tires 699 Needle 57
Machine
Bike Chains 299 Drive Belt 570
Oiling points 170
Total Costs for Vehicles 127,435.80
Total Costs for Equipment 11,286

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Table 127: Summary of Total Overhead Cost

Cost of Overhead Total (₱)

Total Monthly Rental Expense 3,789.83
Total Monthly Electricity Expenses 3,952.68
Total Monthly Water Expenses 3,082.08
Total Monthly Distribution Expenses 11,655.00
Total Equipment Maintenance Cost 11,286
Total Costs of Maintenance for Vehicles 127,435.80
Total 199,045.00

4.9.4 Product Price

The overall costs of the product’s materials, manufacturing costs, labor costs and overhead

costs are referred to as the product price. The eCOIR BAG business wishes to prioritize the

potential markets’ demand and competitors selling price when setting the mark up price.

Table 128: Summary of Total Cost of Product

Product Labor Raw Overhead Unit Mark Up Strategic

(eCOIR) Cost per Material Cost per Price Percentage Selling
Unit (Php) per Unit Unit (Php) (Php) (%) Price
(Php) (Php)
Small 31.00 38.48 8.00 98.12 50% ₱116.22
Medium 31.00 39.98 8.00 100.07 50% ₱118.47
Large 31.00 43.47 8.00 104.61 50% ₱123.71

244
4.10 Management of Quality

In this section, it will oversee all activities and tasks that must be accomplished to maintain

a desired level of excellence. This includes the determination of a quality policy, creating and

implementing quality planning and assurance, and quality control and quality improvement.

4.10.1 Attributes and Variables of Product

Below are the features that describes each of the products offered by the proposed business,

objective and subjective details that can help a potential customer decide what to buy.

Figure 74: Technical Specifications eCOIR BAG

245
 The eCOIR BAG is made from pressed coconut fiber bound with glue adhesive and

reinforced with cotton webbing for durability. Its handle, also made of cotton webbing, ensures

user comfort. The bag is available in three sizes: small, medium, and large.

A. eCOIR BAG Specifications

34 cm

14 cm 32 cm

Figure 75: Small size eCOIR bag dimensions

246
 Figure 76: Canvas size for small eCOIR BAG

The canvas size for the eco-bag is determined based on the dimensions of each panel that

makes up the bag, ensuring all necessary fabric pieces are accounted for. This includes adding a

seam allowance of 2 cm per panel to allow for stitching, folding, or other necessary construction

adjustments.

32 cm

35 cm
17 cm 247
 Figure 77: Medium size eCOIR bag dimensions

Figure 78: Canvas size for medium eCOIR bag

35 cm

45 cm
18 cm

248
 Figure 79: Large size eCOIR bag dimensions

Figure 80: Canvas size for large eCOIR BAG

249
4.10.2 Quality Control Points

Quality control points are steps in making the eCOIR BAG where we check if the product

is good and safe to use. These steps help make sure that the materials, stitching, and final bag are

strong and reliable. By checking the product at different stages, we make sure customers get a

high-quality and eco-friendly bag.

Table 129: Quality Control Points in eCOIR production

Quality Control

Point Description Purpose Action

Raw Material Ensure coconut Prevents defects in Inspect coir for debris

Quality husk/coir is clean, the final product. and texture.

free from

contaminants.

Coir Shredding Check for Uniformity in the Ensure shredders are

consistency in coir bag’s texture. calibrated to provide

size and texture after consistent fiber length.

shredding.

Coir Drying Ensure coir is fully Proper moisture Monitor temperature and

Process dried without over- content for drying time to avoid

drying or under- durability. excess moisture or

drying. brittleness.

250
 Sewing and Ensure stitching is Product durability Examine seams for loose

Stitching consistent, tight, and and finish. threads or weak stitching.

evenly spaced. Perform strength tests on

seams.

Strength and Test bags for load- To meet functional Conduct weight tests on

Durability bearing capacity and expectations. bags under standard load

resistance to wear. conditions.

Final Product Conduct a thorough Ensure overall Perform random

Inspection visual and tactile quality and sampling to check for

check of each appearance. defects, damages, or

finished bag. inconsistencies.

251
 Customers asks Employee explains Customer chooses
about the product the product and the size and number
availability price of bags

Employee confirm Employee packs the Customer pays for

the order bags the order

Customer gets the

product and gives
feedback

Figure 81: Quality Control Points for eCOIR when purchasing

4.11 Facilities and Equipment Maintenance

To ensure that the business's activities function effectively, the facilities and equipment

required for them must be adequately maintained. Regular maintenance is required to maintain

buildings, machinery, and the workplace safe and reliable. It can also help prevent accidents and

other potentially dangerous situations. Because eCOIR BAG Business operates in the

sustainability product category, it is critical to maintain the buildings, machinery, supplies, and

raw materials used in the manufacturing process.

4.11.1 Maintenance of Production Facilities

Making sure that the facility is always in good operating order to facilitate the manufacture

of products for consumers.

252
Table 130: Maintenance of Machine

Equipment Recommended Maintenance Technique Frequency of

Name Maintenance

Hydraulic Press Clean the press surface to prevent fiber Once a day

residue buildup.

Coir Defibering Lubricate moving parts such as shafts, Once a week

Machine bearings, and rollers with appropriate grease

or oil.

Sewing Machine Clean the needle plate, feed dogs, and bobbin Once a day

area to remove coir dust or thread debris.

Figure 82:Tools and Equipment Maintenance Card

253
4.11.2 Maintenance of Non-Production Facilities

The eCOIR BAG business can improve its overall functionality and sustainability by

prioritizing maintenance. Maintaining non-production facilities is just as important as managing

production operations in order to keep the business running smoothly and in line with its eco-

friendly mission. This includes the upkeep of structural components, the drainage system, and

other critical elements.

Business Space

The eCOIR BAG business prioritizes providing a secure and well-maintained working

environment for all its employees. Staff members assigned to facility management will oversee

the upkeep of the building, including essential services such as electricity and water. Regular

inspections of the building’s structural components such as windows, roofing, flooring, and walls

are crucial to ensure its stability and safety. Additionally, visual checks of the premises will be

conducted to identify and address any maintenance issues promptly, supporting a safe and efficient

workspace for the business operations.

Drainage System

Maintaining an efficient drainage system is critical to the success of the eCOIR BAG

business, particularly in terms of creating a pleasant working environment and making a good

impression on visiting customers. Waste generation is unavoidable in the production area, so a

dependable disposal system is required to avoid discomfort that may impair worker productivity.

Proper drainage management minimizes clogs, keeps operations running smoothly, and promotes

a cleaner, more sustainable workplace, all of which coincide with the eCOIR BAG company's eco-

254
friendly purpose. Strategies such as regular trash cleanup, routine examination of drainage systems

for leaks, and enforcing stringent policies against inappropriate waste disposal will not only keep

the drainage system operational but will also reinforce the company's commitment to

environmental responsibility.

Electrical System

One of the most important and possibly dangerous parts of the company is the electrical

system, since poor installation or upkeep can result in major mishaps or fatalities. The likelihood

of events like short circuits and electrical hazards brought on by exposed or damaged wires

increases when routine maintenance is neglected. Strict commitment to electrical system

maintenance is necessary to guarantee safety and functionality. Putting the right procedures in

place will reduce hazards and keep the company's workplace safe. The following actions should

be taken to guarantee the electrical system's performance and security in the eCOIR BAG

company:

1. Examine all electrically powered equipment and facilities on a regular basis.

2. Examine electrical wire connections on a regular basis.

3. Make sure the electrical system was installed correctly.

4. Replace exposed or broken cables as soon as possible.

5. Require maintenance staff to use the right tools and wear the required PPE in order to

prevent electrical mishaps.

6. If you are unsure or unqualified to make electrical repairs, don't try.

7. During wire inspections, use the "Buddy System" to make sure help is accessible.

8. In the event of an accident involving electricity, provide emergency medical assistance.

255
4.12 Supply Chain Management

Efficient supply chain management is essential for the smooth operation of the eCOIR

BAGs Production Company. It ensures the continuous flow of materials, optimal inventory levels,

and timely delivery of finished products to customers. The supply chain is structured to maintain

sustainability, cost efficiency, and operational effectiveness.

In this section shows the Supply Chain Model where the objective of the business

determines its operations, inventory, transportation, and manufacturing.

Table 131: Supply Chain Management

Supply Chain Management

Supplier Delivery eCOIR BAG Delivery Customer

Deliver the finished Business Retailers

Raw materials of Deliver the raw The manufacturer of
product to business and Consumer of
the product are materials needed the product
entities and the eCOIR BAG
from the suppliers
consumer

256
 Figure 83: Supply Chain Model

The supply chain management of eCOIR BAG begins with sourcing raw materials from

various suppliers. Farmers from Santa Fe, Bantayan, and Madridejos provide coconut husks, while

Bantayan Hardware supplies additional materials such as adhesives and stitching components.

These raw materials are then delivered to the manufacturing site in Kampingganon, Bantayan,

Cebu, where they are processed into the finished eCOIR BAG, an eco-friendly alternative to plastic

bags. Once production is complete, the finished products are distributed through physical stores in

L. Aguilar Street, Suba Bantayan, Cebu, near the Honda 3S Shop. and a free delivery service for

business owners and consumers within Bantayan, Cebu. Finally, customers, including business

retailers and individual consumers, use the eCOIR BAG, which is designed to last for up to one

year, depending on usage and maintenance. This structured supply chain ensures the efficient flow

of materials and products, promoting sustainability and reducing plastic waste in the community.

Supplier Name and Location

This section shows the supplier of eCOIR BAG. The supplier is the one that provide the

materials needed such as a product or service. Suppliers are being choose wisely to supply high-

quality standard product since these products will be used.

Table 132: Suppliers Name and Location

Supplier Location

Coconut Husk Santa Fe, Bantayan, Madridejos

Cotton Webbing Bantayan Hardware

Heavy-duty Thread Bantayan Hardware

eCOIR BAG Branding STYLED with SHIMMER

257
 Glue Adhesive Bantayan Hardware

Customers’ Name and Location

This section shows the customer and location of the eCOIR BAG Business. The business

entities and consumer are the ones who buys good and services. they are the most important key

players of the business since they are the target market.

Table 133: Customers Name and Location

Customers Location (Municipality)

Business Entities that sell eCOIR BAG Bantayan Cebu

Bantayanon consumers Bantayan Cebu

4.12.1 Procurement Strategies

The procurement strategy for eCOIR BAGs focuses on cost efficiency, sustainability,

and quality assurance. The raw materials, primarily coconut coir, are sourced from coconut farms

in Barangay Kampingganon and other barangay in Bantayan Island that have abundant coconut

farm. To ensure a steady supply, eCOIR BAGs aims to establish long-term partnerships with at

least five key coconut suppliers, providing them with fair compensation and training on sustainable

farming practices. The procurement process is based on demand forecasting, where raw materials

are procured and stocked in advance to meet anticipated production needs. Additionally, eCOIR

BAGs collaborates with eco-friendly adhesive suppliers based in Cebu City to maintain product

sustainability and quality.

258
4.12.2 Warehousing System

Effective warehousing management of eco-friendly coconut coir bags requires

structured procedures to optimize storage, handling, and distribution. A centralized warehousing

system will be implemented, with a primary warehouse located at the manufacturing facility. This

setup ensures smooth material flow, minimizes handling time, and maintains strict quality control.

To enhance organization, a stocking system will be established by categorizing finished bags based

on size, design, and intended use, such as shopping bags, tote bags, and packaging bags. Storage

methods will include stacked and shelved systems to prevent deformation and creasing, ensuring

product integrity. The warehouse layout will feature designated sections for different bag designs

and sizes, with separate areas for bulk orders and customized products to streamline dispatching.

Strict warehouse procedures will be followed, including routine quality control checks to ensure

each bag meets durability and sustainability standards. Proper folding and packaging methods will

be applied to maintain compact, eco-friendly storage, while digital inventory systems, such as MS

Excel, will track stock levels and movement efficiently.

To uphold cleanliness and sustainability, the warehouse will adopt the 5S methodology,

ensuring an organized and clutter-free environment. Defective bags will be repurposed or recycled

to minimize waste. Additionally, material handling equipment such as customized shelving, racks,

trolleys, and pallet jacks will be used to optimize space utilization and improve the handling of

bulk orders. Through these practices, the warehouse will operate efficiently while maintaining

sustainability and product quality.

259
4.12.2.1 Inbound Logistics

Ensuring a smooth and cost-effective production process for eco-friendly coconut coir bags.

Suppliers must consistently track the inbound materials to guarantee the availability of high-quality raw

materials. This involves verifying each incoming batch based on strict quality standards to achieve the

desired product outcome. The quality of coconut coir fibers and other raw materials is essential in

maintaining the durability and sustainability of the final product.

By implementing effective inbound logistics, the business can minimize waste, optimize inventory

management, and reduce overall costs. A well-structured system allows for timely procurement, efficient

storage, and seamless material flow into the production process. Below is a flowchart providing a clear

overview of the inbound supply chain before production, ensuring a streamlined and organized approach to

material handling.

260
4.12.2.2 Inventory Management

eCOIR BAGs employs an inventory management system that balances supply and

demand. A First-In, First-Out (FIFO) method is implemented to prevent material deterioration.

Stock levels are continuously monitored using an Excel-based tracking system, with reorder points

set at a minimum of 130 kg of raw coir and 155 completed bags. Since production is demand-

based, raw materials are stocked in advance based on sales projections to prevent shortages and

meet customer requirements efficiently. The company conducts a manual weekly audit to verify

stock accuracy and reduce discrepancies. Storage facilities include a climate-controlled room for

finished products and a separate ventilated area for raw materials to prevent mold growth.

4.12.2.3 Outbound Logistics

Outbound logistics focus on the timely and efficient distribution of finished eCOIR

BAGs to retailers and customers. The company follows a structured delivery schedule based on

customer orders and demand forecasts. Various transportation modes, including eco-friendly

options, are considered to reduce the carbon footprint. A well-coordinated distribution network

ensures prompt delivery and customer satisfaction.

Figure 84: Outbound logistics

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4.12.3 Supply Chain Strategies

The supply chain strategies for eCOIR BAGs focus on cost efficiency, ethical sourcing,

and productivity enhancement to ensure a sustainable and competitive production process.

Bulk ordering of raw materials reduces costs through Economic Order Quantity (EOQ)

calculations, ensuring a steady supply of coconut coir fibers and other essentials from sustainable

sources. Utility jobs as responsibilities integrate 5S methodology, promoting workplace

cleanliness and efficiency. Competitive logistics emphasize direct sourcing from local farmers and

cooperatives, eliminating middlemen for a more ethical and cost-effective supply chain. Lastly,

semi-automation of processes enhances productivity by using technology for fiber extraction and

bag production, reducing manual labor while maintaining eco-friendly standards. These strategies

collectively strengthen the efficiency, sustainability, and profitability of the eCOIR BAG business.

Figure 85: Supply Chain Strategies

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4.13 Green Manufacturing Practices

The eCOIR BAG Business is committed to sustainable production methods by minimizing

waste, optimizing energy use, and utilizing eco-friendly materials. These sustainable practices

enhance the eco-friendliness and market appeal of the eCOIR BAG Business while ensuring

compliance with environmental regulations. Below is the breakdown of how Green Manufacturing

Practices relate to our eCOIR BAG Business, integrating key aspects of sustainability.

4.13.1 Types of Wastes Generated

The production of eCOIR BAGs involves various processes that generate different types

of waste. Proper waste identification and management are crucial to ensure environmental

sustainability and compliance with waste disposal regulations. The types of waste generated in the

manufacturing process include:

Table 134: Types of Wastes Generated

Waste Management
Type of Waste Description Examples
Strategy
Reuse for other products
Coconut coir residues
Biodegradable (mats, insulation)
waste from Dust and fiber
Organic Waste Sell or donate for agricultural
coconut coir particles
use (soil conditioner,
processing.
fertilizer, hydroponics)
Coco peat
Leftover Adhesive/glue
Proper disposal of excess
Chemical Waste substances used residues
chemicals
in binding
Solid waste from Proper segregation for
Solid Waste Scrap fabric
production. disposal

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 Defective or rejected
Disassemble and reprocess to
bags
coir fiber

Used water
Water used for
containing
Water Waste soaking and cleaning Filtration before disposal
residues from
coconut husk
processing.
Waste that may - Dispose of properly
Hazardous Waste Empty chemical glue
require special following hazardous waste
(Minimal) containers
handling. guidelines

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4.13.3 Energy-Efficient Technologies

Table 135: Energy-Efficient Technologies

Types of Energy-Efficient Description

Technologies
Solar Drying Methods We will incorporate using solar energy to dry coconut
fibers, reducing electricity usage as our alternative in
case of sudden blackout.

Energy-Efficient Machinery Implementing low-power consumption processing

equipment.

LED Lighting Using LED fluorescent bulb in production facilities to

lower energy consumption.

The eCOIR BAG Business incorporates energy-saving technologies to reduce operational

costs and environmental impact. Solar drying methods leverage renewable solar energy to dry

coconut fibers, significantly lowering electricity usage. This method not only reduces dependency

on non-renewable energy but also decreases greenhouse gas emissions. Energy-efficient

machinery is utilized to optimize power consumption, ensuring that production processes are both

cost-effective and environmentally responsible. Additionally, LED lighting in production facilities

helps lower electricity usage compared to traditional lighting systems, further contributing to

sustainability. The integration of these technologies demonstrates the company’s commitment to

reducing its carbon footprint while maintaining efficient production processes.

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4.13.4 Eco-Friendly Materials

Sustainability is at the core of eCOIR BAGs, ensuring that every material used in

production aligns with eco-friendly principles. The company carefully selects natural and

biodegradable materials to minimize environmental impact while maintaining durability and

functionality. The primary material, coconut coir fiber, is sourced from local farms, reducing

agricultural waste and supporting local livelihoods. Biodegradable thread is used for stitching,

while cotton webbing reinforces the sides of the bag and serves as sturdy handles. By utilizing

renewable and plastic-free materials, eCOIR BAGs provides an eco-friendly alternative to

conventional packaging, promoting sustainability and responsible consumer choices.

Table 136: Eco-Friendly Material Use in eCOIR BAG

Material Source Purpose/Use Eco-Friendly Benefits

Coconut husks from Main material for Sustainable, biodegradable,

Coconut Coir Fiber
Bantayan Island bag production reduces agricultural waste

Compostable, avoids
Biodegradable Organic cotton or Stitching the bag
plastic-based synthetic
Thread abaca fiber parts together
threads
Reinforces bag
Organic or natural Biodegradable, durable,
Cotton Webbing structure (handles
cotton and reduces plastic use
& sides)

Water Conservation

Water conservation is a crucial aspect of sustainable eCOIR BAG production, ensuring

efficient use of water resources while minimizing environmental impact. By implementing

strategic measures, the production process can significantly reduce water consumption, promote

266
recycling, and prevent contamination of natural water sources. These conservation methods align

with eco-friendly manufacturing practices and contribute to long-term sustainability.

Table 137: Water Conservation

Types of Water Description

Conservation
Rainwater Collecting and utilizing rainwater for coir processing.
Harvesting
Efficient Washing Reducing excessive water usage through controlled washing cycles.
Techniques
Optimized Soaking Regulate soaking duration to use only the necessary amount of water
Time for fiber softening.

Efficient Drainage Wastewater is naturally filtered to remove sediments and organic

and Wastewater matter before being discharged. Sedimentation tanks help heavy
Management particles settle, while sand or charcoal filters clean the water,
ensuring safety standards are met and preventing contamination.

Water conservation in eCOIR BAG production is essential for sustainability, cost

efficiency, and environmental compliance. Rainwater harvesting reduces reliance on freshwater,

while efficient washing techniques prevent excessive water use through controlled cycles.

Optimized soaking time ensures minimal water waste while maintaining fiber quality.

Additionally, efficient drainage and wastewater management help filter and treat used water before

disposal, preventing contamination.

267
4.13.6 Life Cycle Analysis

Figure 86: Life Cycle Process

The life cycle of eCOIR BAG follows a structured process, beginning with the Finished Products,

where the bags are manufactured using coconut coir, a renewable and biodegradable material. This process

of manufacturing begins with collecting and processing raw coconut husks to extract coir fibers. These

fibers are cleaned, dried, and treated for durability before being spun into yarn or woven into fabric. The

woven coir is then cut, stitched, and reinforced into bag designs. Finally, the bags undergo quality checks

before being packaged and distributed, ensuring they are eco-friendly, durable, and biodegradable. Once

production is completed, the bags are Dispatch, where they are moved from the storage located within the

manufacturing site to physical stores or distribution points. This phase involves logistics and transportation,

ensuring the efficient delivery of bags to customers.

Following distribution, the bags reach the Customer, where business entities can sell and consumers

purchase and use them for their shopping activities. Their effectiveness and lifespan depend on factors such

as material quality, maintenance practices, and environmental conditions. Over time, bags experience wear

and tear, leading to the Users Usage, where frequency of use and proper handling determine their longevity.

Well-maintained bags can be used for extended periods, providing value to the users.

At the end of their life cycle, eCOIR BAG enter the Disposal point, where they are either discarded

or repurposed. Coconut coir can be repurposed into compost, soil enhancers, or insulation. If disposed of

naturally, it decomposes without harming the environment. Improper disposal in landfills delays

decomposition, though still much faster than plastics. The longer and more frequently the eCOIR BAG is

used, the greater its positive environmental impact.

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 CHAPTER V.

MANAGEMENT ASPECT

This section outlines the management aspect of the business, including the pre-

implementation and implementation stages. It also covers management operations, the form of

organization, organizational structure, business personnel, human resources, compensation plans,

and management policies and regulations. These strategies help the business achieve its goals.

5.1 Pre-Implementation Stage

This section shows how to assess the business environment and ensure that the eCOIR

BAG business is ready for implementation. It focuses on understanding how well the business can

operate, reach customers, and engage with them effectively.

5.1.1 Pre-operating Activities

This section outlines the company’s pre-operational activities as well as the duration and

group responsible for each plan, which are shown below.

Table 138: Pre-operating Activities

Activity Description No. of working days

Feasibility Study 184

Financial Planning and Fund 25

Acquisition

Site Acquisition and Preparation 29

Legal Permits and Compliance 29

Construction of Manufacturing 63

Plant

269
 Equipment Procurement and Setup 15

Hiring 21

Training 7

Production Testing and Quality 12

Assurance

Business Launching 1

Marketing and Business Promotion 1

Pre-production 31

Operation -

5.1.2 Project Timetable

This section outlines the timeline for the business’s pre-operating activities. It helps

management plan ahead, stay on track, and meet important deadlines. The table below shows the

project's timetable of eCOIR BAG Business.

Table 139: Precedence Table (Project Timetable per day)

Activity Duration Predecessor Start Date End Date

Activity Description Of Days
Code
A Feasibility Study 184 09/05/2025 03/05/2025

B Financial Planning and Fund 25 A 03/06/2025 03/31/2025

Acquisition
C Site Acquisition and 29 B 04/01/2025 04/30/2025
Preparation
D Legal Permits and Compliance 29 C 05/01/2025 05/30/2025
E Construction of 63 D 06/02/2025 08/04/2025
Manufacturing Plant
F Equipment Procurement and 15 E 08/05/2025 08/20/2025
Setup

270
 G Hiring 21 F 08/18/2025 09/09/2025
H Training 7 G 09/10/2025 09/17/2025
I Production Testing and 12 H 09/18/2025 09/29/2025
Quality Assurance
J Business Launching 1 I 09/30/2025 09/30/2025
K Marketing and Business 1 J 10/01/2025 10/01/2025
Promotion
L Pre-production 31 K 11/01/2025 12/31/2025
M Operation - L 01/01/2026 -

5.1.3 Program Evaluation and Review Technique (PERT)

This section is a visual project management technique where the study plan, schedule,

organize, coordinate, and control uncertain activities.

Figure 87: Precedence Table (PERT/CP)

This figure shows the precedence table of PERT/CP, this figure shows the project

timetable process of the business.

271
5.1.4 Project Duration Time

Table 140: Project Duration Time

Activity Duration
Activity Description Predecessor
Code (Days)

A Feasibility Study 184 -

Financial Planning & Fund
25
B Acquisition A
C Site Acquisition & Preparation 29 B
D Legal Permits & Compliance 29 C
E Construction of Manufacturing Plant 63 D
F Equipment Procurement & Setup 15 E
G Hiring 21 F
H Training 7 G
Production Testing & Quality
12
I Assurance H
J Business Launching 1 I
K Marketing & Business Promotion 1 J
L Pre-Production 61 K
M Operation - L

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 5.1.5 Gantt Chart

Table 141: Gantt Chart

2024 2025 2026

Activity Duratio
Activity Description Start Finish September March April May June July August September October November December January February March
Code n (Days)
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
A Feasibility Study 09/01/2024 03/05/2025 184
B Financial Planning & Fund Acquisition 03/06/2025 3/31/2025 25
C Site Acquisition & Preparation 04/01/2025 04/30/2025 29
D Legal Permits & Compliance 05/01/2025 05/30/25 29
E Construction of Manufacturing Plant 06/02/2025 08/04/2025 63
F Equipment Procurement & Setup 08/05/2025 08/20/2025 15
G Hiring 08/18/2025 09/09/2025 21
H Training 09/10/2025 09/17/2025 7
I Production Testing & Quality Assurance 09/18/2025 09/29/2025 12
J Business Launching 09/30/2025 09/30/2025 1
K Marketing & Business Promotion 10/01/2025 10/01/2025 1
L Pre-Production 10/02/2025 12/31/2025 91
M Operation 11/04/2025 -

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5.1.6 Cost Estimates

This section shows the projected costs for the company's pre-operational activities. Cost estimation involves forecasting the

financial and resource requirements needed to complete the project within its defined scope. The table below outlines the estimated

expenses necessary to establish the business.

Table 142: Cost estimates for the PRE-Implementation stages

Pre-Operating Activities Quantity Unit Cost per unit Total cost

Research and Feasibility Study 1 8,000.00 8,000.00
Product Development and Prototype 1 10,000.00 10,000.00
Pre-production activities 1 544,371.00 544,371.00
Pre-operational utilities 1 9,454.00 9,454.00

Space Rental 1 Month Advance and Deposit (Store) 1 4,000.00 4,000.00

Launching of eCOIR bag business 1 - 8,000.00 8,000.00
Orientation and Training 1 - 2,000.00 2,000.00
Hiring and Recruitment 1 - 1,500.00 1,500.00
Canvassing and Acquiring of the machines and
equipment 1 - 3,000.00 3,000.00
Acquiring of Permits and Licenses 1 - 8,000.00 8,000.00
Installation Cost 1 - 30,000.00 30,000.00
Sourcing of Capital 1 - 3,000.00 3,000.00
Internet 1 - 1,100.00 1,100.00
632,425.00

274
Promotional and Marketing Expenses
Promotional Video 1 - 2,500.00 2,500.00
Virtual Posters 1 - 500.00 500.00
Printed Posters (3x5) 10 pcs. 300.00 3,000.00
6,000.00
12,000.00
644,425.00

275
5.1 Implementation Stage

The Implementation Stage of the eCOIR BAG production focuses on the execution of the

business plan, transitioning from preparation to full-scale operations. This stage involves setting

up the production facility, sourcing raw materials, hiring and training employees, and establishing

operational processes.

5.1.1 Form of Organization

This section presents the form of organization, which defines the legal structure of the

business for buying, selling, and overall operations. Choosing the right business structure is

essential as it affects management, taxation, and liability. There are three main types of business

organizations: sole proprietorship, partnership, and corporation.

The eCOIR BAG Business is established as a “Corporation”, meaning it is a legally

separate entity from its owners. This structure allows the business to operate independently,

limiting the financial risks of shareholders while ensuring long-term stability and growth. The

corporation is owned by shareholders and managed by a board of directors, ensuring a well-

organized decision-making process.

Advantages of a Corporation

o Limited liability, reducing personal financial risk

o Business can continue even if ownership changes

o Easier access to funding through investments

o Structured management for better decision-making

Disadvantages of a Corporation

o More regulations and legal requirements

276
 o Higher costs to set up and maintain

o Corporate profits are taxed separately

o More paperwork and formal procedures

5.1.2 Organizational Structure

An organizational structure defines how a company arranges its departments, activities,

and personnel. It typically follows a hierarchical system that outlines the delegation of roles,

responsibilities, and authority. This structure is essential for ensuring smooth operations, as it

influences task distribution, decision-making processes, and communication flow within the

organization.

Figure 88: Organizational Chart

277
 5.1.3 Manpower Requirement

The manpower requirement table outlines the necessary workforce to ensure smooth

operations across the facility, manufacturing, and physical store. It details 15 employees, including

key roles such as General Manager, Operations Specialist, Administrative Officer, Machine

Operators, Tailors, Cutters, Driver, and Receptionist ensuring efficient task execution and

organizational success.

Table 143: Manpower Requirement

Category Manpower No. of Employees

General Manager 1

Administrative Officer 1

Manufacturing Operations Specialist 1

Facility
Machine Operators 4

Tailor 5

Cutter 1

Driver 1

Physical Store Receptionist 1

TOTAL 15

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5.2.1 Personnel of Business

The key management personnel are essential to the company's success, particularly in the

production of eCOIR BAGs, eco-friendly bags made from coconut fiber. Their roles span strategic

planning, production efficiency, and customer interaction, all of which contribute to the company's

growth and sustainability. This team ensures that the business operates smoothly and meets the

increasing demand for environmentally friendly products.

Table 144: Personnel of Business

Positions Job Description Duties and Job Specifications

Responsibilities

General Provides overall Oversee business Bachelor’s degree in Business

Manager vision and operations, set long- or related field, 5+ years in

direction for the term strategies, manage senior management, strong

company’s investor relations, and experience in business

growth and ensure the market strategy, operations oversight,

sustainability. positioning of eCOIR financial management,

BAGs. leadership skills, and market

analysis.

Operation Ensures efficient Monitor production Bachelors in Operations

Specialist production timeline, manage Management or related field,

processes. logistics, troubleshoot 3+ years in operations,

operational bottlenecks, logistics, production

management, strong problem-

279
 and ensure machinery solving, project management

efficiency. skills.

Administrative Manages office Oversee office Bachelors in Business Admin

Officer/HR operations, operations, maintains or HR, 2+ years in

internal employee records., administration or HR,

communication, Assist with recruitment proficiency in office and HR

and HR and onboarding, ensure software, knowledge of labor

functions, compliance with labor laws, strong communication

including record- laws, Manage HR and organizational skills.

keeping and software.

recruitment.

Machine Operates Ensure proper machine Technical diploma in

Operator machinery for function, follow safety machine operation, at least 3

eCOIR BAG protocols, maintain years experienced in the field,

production. optimal performance, especially in machinery

and troubleshoot minor maintenance.

issues.

Cutter Cuts coconut Cut materials precisely Experience in material

fiber and fabric for production, ensuring cutting, attention to detail,

to required sizes. accuracy in the and ability to work with

preparation for further fabrics.

processing.

280
 Tailor Assembles cut Stitch and sew

coconut fiber materials together, Experience in tailoring or

into finished ensuring the durability sewing, knowledge of fabric

eCOIR BAGs. and functionality of the types, and precision skills.

bags.

Driver Transports raw Safely deliver and pick Valid driver's license,

materials and up materials and experience in driving,

finished products, maintain knowledge of safe driving

products. vehicle condition, and practices.

ensure timely

deliveries.

Physical Store Manages Greet customers, High school diploma,

Receptionist customer service manage sales, maintain experience in retail or

and sales store organization, and customer service, strong

transactions. provide product communication skills.

information.

281
 CHAPTER VII. FINANCING AND FINANCIAL ASPECT

7.1 Financing and Financial Projections

This section outlines the financial aspects of eCOIR BAG production, including the initial

investment, funding sources, and projected revenues. It provides a detailed analysis of expected

costs, pricing strategies, and profitability to assess the feasibility and sustainability of the business.

By evaluating financial projections, we can determine the potential return on investment and

ensure the long-term viability of eCOIR BAGs in the market.

7.1.1.1 Initial Capitalization

The initial capitalization of the eCOIR BAG production involves the investment required

to acquire fixed assets, cover startup costs, and sustain operations until the business becomes self-

sufficient. This section details the allocation of funds, including fixed assets, project costs, and

amortization schedules.

7.1.1.2 Fixes Asset

A fixed asset is a long-term tangible asset that a company owns and uses in its operations

to generate income. These assets are not intended for resale and typically have a useful life of

more than one year.

Fixed Asset Total Expense (Php)

Property, Tools, and Equipment 1,152,711.00

Facility Building 2,000,000.00

Office, Emergency, Other Equipment 94,631.90

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 A. Fixed Asset Breakdown (Property, Plant, and Equipment)

Price per Unit

Name Quantity Unit Total (Php)
(Php)
Machines and Equipment
Coir Defibering Machine 1 pc. 79,000 79,000
Weighing Scale 1 pc. 1,200 1,200
Spraying Machine 1 pc. 22,583 22,583
Hydraulic Press 1 pc. 39,473 39,473
Drying Machine 1 pc. 34,752 34,752
Electric Cutter 2 pcs. 2,811 5,622
Sewing Machine 5 pcs. 26,000 130,000
Trolley Push Cart 2 pcs. 529 1058
Industrial Table (2 x 1 m) 2 pc. 7,973.00 15,946.00
Industrial Table (1 x 0.5 m) 6 pc. 3,240.00 18,382.00
Storage Box (1x0.70x 0.095m) 1 pc. 3,880.00 3,880.00
Storage Box (1x0.70x0.5m) 1 pc. 2,605.00 2,605.00
Flat Belt Conveyor (1x0.5 m) 2 pcs. 11,605.00 23,210.00
Canter Truck 1 pc. 695,000 695,000
Generator 1 pc. 80,000 80,000
1,152,711.00

B. Fixed Asset Breakdown (Building)

Price per Unit

Name Quantity Unit Total (Php)
(Php)
Building
Factory Building 1 - 2,000,000.00 2,000,000.00
2,000,000.00

C. Fixed Asset Breakdown (Office, Emergency, Other Equipment)

283
 Price per Unit
Name Quantity Unit Total (Php)
(Php)
Office Equipment
Printer 1 pc. 9,500.00 9500
Laptop 1 pc. 20,470.00 20470
Modem 1 pc. 11,00.00 1100
Long Table 1 pc. 5,000.00 5000
Tables (Office and Store) 2 pcs. 1,500.00 3000
Steel Cabinet 1 pc. 2,999.00 2999
Chairs (Sewing) 5 pcs. 580.00 2900
Chairs (Office and Store) 7 pcs. 419.70 2937.9
Cashier Machine 1 pc. 4,780.00 4,780.00
Aircon 1 pc. 13,998.00 13,998.00
Fluorescent Lights 4 pc. 300 1,200.00
Electric Fan 1 pc. 2,449.00 2,449.00
Water Dispenser 2 pc. 1,200.00 2,400.00
Storage Rack 6 pcs. 1,969.00 11,814.00
Emergency Equipment
Fire Extinguisher 6 pcs. 1138 6,82800
First Aid Kit 2 pcs. 500 1,000
Security
CCTV Camera 4 pcs. 339 1,356
Fire alarm 2 pcs. 450 900
94,631.90

7.1.2 Sources of Funding

Sources of funding refer to the various ways a business secures financial resources to start,

operate, and grow. These funds can come from internal or external sources, including owner

contributions, loans, grants, or investments.

7.1.2.1 Equity Financing

The initial capital required for business operations was self-funded by the owners, who

contributed personal funds to cover startup expenses, equipment, and operational costs. This

ensures full ownership and control over financial decisions.

284
 Table. Contributors

Contributor Initial Contribution (PHP)

Owner 1 700,000

Owner 2 700,000

Owner 3 700,000

Owner 4 700,000

Owner 5 700,000

Initial Capitalization 3,500,00

7.1.3 Pre-operating Expense

Pre-operating expenses are the costs incurred before a business officially starts its

operations. These expenses cover activities necessary to establish the business, such as registration,

legal fees, initial setup, and preparatory costs.

Table. Initial Capitalization

Initial Capitalization Total Cost (Php)

Distribution Material 695,000.00

Machines and Equipment 458,769.00

Office and Emergency Equipment 119,281

Facility Building 2,000,000

Pre-operating Expenses 659,955

7.1.3.1 Breakdown of Initial Capitalization

285
 A. Distribution Material

Price per Unit

Name Quantity Unit Total (Php)
(Php)
Distribution Materials
Canter truck 1 pc. 695,000 PHP 695,000.00
Total 695,000.00

B. Machines and Equipment

Price per Unit

Name Quantity Unit Total (Php)
(Php)
Machines and Equipment
Coir Defibering Machine 1 pc. 79,000 79,000
Weighing Scale 1 pc. 1,200 1,200
Spraying Machine 1 pc. 22,583 22,583
Hydraulic Press 1 pc. 39,473 39,473
Drying Machine 1 pc. 34,752 34,752
Electric Cutter 2 pcs. 2,811 5,622
Sewing Machine 5 pcs. 26,000 130,000
Generator (PWH-DSG-30KVA) 1 pc. 80,000 80,000
Trolley Push Cart 2 pcs. 529 1058
Industrial Table (2 x 1 m) 2 pc. 7,973.00 15,946.00
Industrial Table (1 x 0.5 m) 6 pc. 3,240.00 19,440.00
Storage Box (1x0.70x 0.095m) 1 pc. 3,880.00 3,880.00
Storage Box (1x0.70x0.5m) 1 pc. 2,605.00 2,605.00
Flat Belt Conveyor (1x0.5 m) 2 pcs. 11,605.00 23,210.00
Total 458,769.00
C. Office and Emergency Equipment

Price per Unit

Name Quantity Unit Total (Php)
(Php)
Emergency Equipment
Fire Extinguisher 6 psc. 1,138 6,828
First Aid Kit 2 psc. 500 1,000

Personal Protective Equipment

Gloves 1 dozen 196 196
Safety Boots 12 pcs. 299 3,588

286
Mask 1 box 349 349
Ear Plugs 12 pcs. 10 120
Visibility Vests 12 pcs. 23 276
Safety Glasses 12 pcs. 55 660
Protective Apron 12 pcs. 57 684
5,873

Security
CCTV Camera 4 pcs. 339 1,356
Fire alarm 2 pcs. 450 900
2,256

15,957

Office Equipment and Supplies

Epson L3210 1 pc. 9,500.00 9,500.00
Laptop 1 pc. 20,470.00 20,470.00
Modem 1 pc. 1,100.00 1,100.00
31,070.00
Office Supplies and Sanitary Equipment
Bondpaper (long) 1 box 900.00 900.00
Bondpaper (short) 1 box 900.00 900.00
Water Dispenser 2 pc. 1,200.00 2,400.00
Folder (long) 1 box 450.00 450.00
Folder (short) 1 box 450.00 450.00
Ball pen 1 box 200.00 200.00
Printer ink 1 set 198.00 198.00
Trash bag/bin 3 roll 35.00 35.00
Broom 2 pcs. 30.00 30.00
Dustpan 1 pc. 80.00 80.00
Floor Mop 1 pc. 150.00 150.00
Stapler 1 pc. 80.00 80.00
Staple Wire 1 box 28.00 28.00
5,901.00
36,971.00

287
Office and Store Fixtures
Tables (Office and Sotre) 2 pc. 5,000.00 10,000.00
Steel Cabinet 1 pc. 2,999.00 2,999.00
Chairs (Sewing) 5 pc. 580.00 2,900.00
Chairs (Office and Store) 7 pc. 419.70 2,937.90
Aircon (Office) 1 pc. 13,998.00 13,998.00
Electric Fan (Store) 1 pc. 2,449.00 2,449.00
35,283.90

103,324.90

D. Facility Building

Price per Unit

Name Quantity Unit Total (Php)
(Php)
Building
Factory Building 1 - 2,000,000.00 2,000,000.00
2,000,000.00

E. Pre-operating Expense

Cost per
Pre-Operating Activities Quantity Unit unit Total cost
Research and Feasibility Study 1 8,000.00 8,000.00
Product Development and Prototype 1 10,000.00 10,000.00

Pre-production activities 1 544,371.00 544,371.00

Pre-operational utilities 1 9,454.00 9,454.00
Space Rental 1 Month Advance and Deposit
(Store) 1 4,000.00 4,000.00
Launching of eCOIR bag business 1 - 8,000.00 8,000.00
Orientation and Training 1 - 2,000.00 2,000.00
Hiring and Recruitment 1 - 1,500.00 1,500.00

288
 Canvassing and Acquiring of the machines
and equipment 1 - 3,000.00 3,000.00
Acquiring of Permits and Licenses 1 - 8,000.00 8,000.00
Installation Cost 1 - 30,000.00 30,000.00
Sourcing of Capital 1 - 3,000.00 3,000.00
Internet 1 - 1,100.00 1,100.00
632,425.00
Promotional and Marketing Expenses
Promotional Video 1 - 2,500.00 2,500.00
Virtual Posters 1 - 500.00 500.00
Printed Posters (3x5) 10 pcs. 300.00 3,000.00
6,000.00
12,000.00
644,425.00

Cost
Permits Acquisition
DTI or SEC Registration 6,750.00
Vehicle Registration 2,700.00
Barangay Clearance 420.00
Community Tax Certificate 65.00
Fire Safety and Inspection Certificate 300.00
Mayor's Permit License and Sanitary 1,935.00
Police Clearance 130.00
BIR Registration 2,030.00
Environmental Compliance Certificate 1,200.00
15,530.00

7.1.4 Operating Expenses

Operating expenses (OPEX) are the recurring costs a business incurs to maintain daily

operations and generate revenue. These expenses are necessary for the business to function but are

not directly tied to producing goods or services.

Tasble: operating expense

289
 Operating expenses 2026 2027 2028
Operation Specialist 55,250.00 56,907.50 58614.73
Sales Person 127,296.00 131,114.88 135048.33
Driver/Utility Personnel 127,296.00 131,114.88 135048.33
General Manager 77,350.00 79,670.50 84,522.43
Administrative Officer 274,300.00 284,537.50 293073.63
Depreciation of office equipment 12,848.19 11,012.73 11,012.73
Depreciation of Factory Building 4,480.00 3,840.00 3,840.00
Interest Expense 5,301.00 4,871.44 4,450.47
Raw Materials 323,039.60 323,459.55 323,880.05
Logistics and Transportation 139,860.00 140,041.82 140,223.87
Marketing and Advertisement 73,000.00 73,094.90 73,189.92
Taxes and Licenses 113,630.00 41,119.00 53454.70
Miscellaneous Expenses 168,643.00 170,835.36 17457.70
PHP PHP PHP
Total 1,502,293.79 1,451,620.06 1,333,816.88

Table: accrued expense

2026 2027 2028

Lease Obligations (10%) 21,478.00 21,048.44 20,627.47
Electrical Consumption 47,432.22 48,855.18 50,320.84
Water Consumption 36,984.96 38,094.51 39,237.34
Gas Consumption 139,860.00 144,055.80 148,377.47
Rent Expenses 24,000.00 24,720.00 25,461.60
Internet Expenses 13,200.00 13,596.00 14,003.88
Maintenance 163,934.35 168,852.38 173,917.95
TOTAL 446,889.53 459,222.31 471,946.56
Paid in Cash - 11 months 409,648.73 420,953.79 432,617.68

PHP
Accrued Expenses, December 31. 2026 37,240.79

Accrued Expenses, December 31. 2027 PHP 38,268.53

290
Accrued Expenses, December 31. 2028 PHP 39,328.88

Grand Total 1,949,183.31 1,910,842.37 1,805,763.44

291
7.1.5 Projected Financial Statements

Projected Financial Statements provide an estimate of the business’s future financial performance based on expected revenues,

expenses, and investments. These projections help in financial planning, securing funding, and assessing profitability.

Table: Projected Sales Revenue

Table: sales revenue

SMALL eCOIR Bag YEAR 1 - 2026

Total Sales 2026 2027 2028
Month January February March April May June July August September October November December
Number of Units per month 713 713 713 713 713 713 713 713 713 713 713 713 8556 8898.24 9432.1344
Selling Price 116.22 116.22 116.22 116.22 116.22 116.22 116.22 116.22 116.22 116.22 116.22 116.22 116.22 122.03 128.13

Total Sales 82,864.86 82,864.86 82,864.86 82,864.86 82,864.86 82,864.86 82,864.86 82,864.86 82,864.86 82,864.86 82,864.86 82,864.86 994,378.32 1,085,861.13 1,208,563.43

MEDIUM eCOIR Bag YEAR 1 - 2026

Total Sales 2026 2027 2028
Month January February March April May June July August September October November December
Number of Units per month 2945 2945 2945 2945 2945 2945 2945 2945 2945 2945 2945 2945 35,340.00 36753.6 38958.816
Selling Price 118.47 118.47 118.47 118.47 118.47 118.47 118.47 118.47 118.47 118.47 118.47 118.47 118.47 124.39 130.61

Total Sales 348,894.15 348,894.15 348,894.15 348,894.15 348,894.15 348,894.15 348,894.15 348,894.15 348,894.15 348,894.15 348,894.15 348,894.15 4,186,729.80 4,571,908.94 5,088,534.65
{3}
LARGE eCOIR Bag YEAR 1 - 2026 Year Year
Total Sales 2026 2027 2028
Month January February March April May June July August September October November December
Number of Units per month 1147 1147 1147 1147 1147 1147 1147 1147 1147 1147 1147 1147 13,764.00 14314.56 15173.4336
Selling Price 123.71 123.71 123.71 123.71 123.71 123.71 123.71 123.71 123.71 123.71 123.71 123.71 123.71 129.89 136.38

Total Sales 141,889.64 141,889.64 141,889.64 141,889.64 141,889.64 141,889.64 141,889.64 141,889.64 141,889.64 141,889.64 141,889.64 141,889.64 1,702,675.62 1,859,321.78 2,069,425.14

1,803,360.00 Total Sales 6,883,783.74 7,517,091.84 8,366,523.22

292
Table: cost of Goods Sold

2026 2027 2028

Direct Materials 2,186,473.01 2,550,885.17 2,678,429.43

Direct Labor Costs: 1,803,360.00 1,857,460.80 1,913,184.62

Factory Overhead
Depreciation of Production Tools,and Equipment
133,936.33 114,802.57 114,802.57
Depreciation of Factory Building
85,120.00 72,960.00 72,960.00

Electrical Consumption 113,448.04 115,717.00 118,031.34

Gas Consumption 13,426.56 13,695.09 13,968.99

Water Consumptions 4,320.00 4,406.40 4,494.53

Maintennace Cost 127,435.80 129,984.52 132,584.21

477,686.73 451,565.58 456,841.64

COGS 4,467,519.74 4,859,911.55 5,048,455.69

293
Table: Cost of goods sold (small size)
SMALL

2026 2027 2028 2029 2030

Description Amount (Php) Description Amount (Php) Description Amount (Php) Description Amount (Php) Description Amount (Php)
Beginning Inventory Beginning Inventory Beginning Inventory Beginning Inventory
Beginning Inventory (BI)
(BI) (BI) (BI) (BI)
Coconut Husk Coconut Husk 2,249.86 Coconut Husk 2,362.35 Coconut Husk 2,480.47 Coconut Husk 2,604.49

Cotton Webbing Cotton Webbing 15,111.00 Cotton Webbing 15,866.55 Cotton Webbing 16,659.88 Cotton Webbing 17,492.87

Adhesive Glue Adhesive Glue 9,066.60 Adhesive Glue 9,519.93 Adhesive Glue 9,995.93 Adhesive Glue 10,495.72

Heavy Duty Thread Heavy Duty Thread 4,197.50 Heavy Duty Thread 4,407.38 Heavy Duty Thread 4,627.74 Heavy Duty Thread 4,859.13

eCOIR BAG Tag eCOIR BAG Tag 1,679.00 eCOIR BAG Tag 1,762.95 eCOIR BAG Tag 1,851.10 eCOIR BAG Tag 1,943.65

0.00 32,303.96 33,919.16 35,615.12 37,395.87

Coconut Husk 22,498.60 23,623.53 24,804.71 26,044.94 27,347.19

Cotton Webbing 151,110.00 158,665.50 166,598.78 174,928.71 183,675.15

Adhesive Glue 90,666.00 95,199.30 99,959.27 104,957.23 110,205.09
Heavy Duty Thread 41,975.00 44,073.75 46,277.44 48,591.31 51,020.87
eCOIR BAG Tag 16,790.00 17,629.50 18,510.98 19,436.52 20,408.35
TOTAL 323,039.60 339,191.58 356,151.16 373,958.72 392,656.65

TOTAL MATERIALS 323,039.60 371,495.54 390,070.32 409,573.83 430,052.52

Less ending Inventory

Coconut Husk 2,249.86 2,362.35 2,480.47 2,604.49 2,734.72
Cotton Webbing 15,111.00 15,866.55 16,659.88 17,492.87 18,367.51
Adhesive Glue 9,066.60 9,519.93 9,995.93 10,495.72 11,020.51
Heavy Duty Thread 4,197.50 4,407.38 4,627.74 4,859.13 5,102.09
eCOIR BAG Tag 1,679.00 1,762.95 1,851.10 1,943.65 2,040.83
32,303.96 33,919.16 35,615.12 37,395.87 39,265.67

Cost of Direct materials 290,735.64 339,191.58 356,151.16 373,958.72 392,656.65

medium

294
Table: Cost of goods sold (medium size)
medium
2026 2027 2028 2029 2030
Description Amount (Php) Description Amount (Php) Description Amount (Php) Description Amount (Php) Description Amount (Php)
Beginning Inventory Beginning Inventory Beginning Inventory Beginning Inventory
Beginning Inventory (BI)
(BI) (BI) (BI) (BI)
Coconut Husk Coconut Husk 11,616.13 Coconut Husk 12,196.93 Coconut Husk 12,806.78 Coconut Husk 13,447.12
Cotton Webbing Cotton Webbing 65,882.50 Cotton Webbing 69,176.63 Cotton Webbing 72,635.46 Cotton Webbing 76,267.23
Adhesive Glue Adhesive Glue 41,610.00 Adhesive Glue 43,690.50 Adhesive Glue 45,875.03 Adhesive Glue 48,168.78
Heavy Duty Thread Heavy Duty Thread 20,215.53 Heavy Duty Thread 21,226.30 Heavy Duty Thread 22,287.62 Heavy Duty Thread 23,402.00
eCOIR BAG Tag eCOIR BAG Tag 6,935.00 eCOIR BAG Tag 7,281.75 eCOIR BAG Tag 7,645.84 eCOIR BAG Tag 8,028.13
0.00 146,259.15 153,572.11 161,250.71 169,313.25

Coconut Husk 116,161.25 121,969.31 128,067.78 134,471.17 141,194.73

Cotton Webbing 658,825.00 691,766.25 726,354.56 762,672.29 800,805.91
Adhesive Glue 416,100.00 436,905.00 458,750.25 481,687.76 505,772.15
Heavy Duty Thread 202,155.25 212,263.01 222,876.16 234,019.97 245,720.97
eCOIR BAG Tag 69,350.00 72,817.50 76,458.38 80,281.29 84,295.36
TOTAL 1,462,591.50 1,535,721.08 1,612,507.13 1,693,132.49 1,777,789.11

TOTAL MATERIALS 1,462,591.50 1,681,980.23 1,766,079.24 1,854,383.20 1,947,102.36

Less ending Inventory

Coconut Husk 11,616.13 12,196.93 12,806.78 13,447.12 14,119.47
Cotton Webbing 65,882.50 69,176.63 72,635.46 76,267.23 80,080.59
Adhesive Glue 41,610.00 43,690.50 45,875.03 48,168.78 50,577.22
Heavy Duty Thread 20,215.53 21,226.30 22,287.62 23,402.00 24,572.10
eCOIR BAG Tag 6,935.00 7,281.75 7,645.84 8,028.13 8,429.54
146,259.15 153,572.11 161,250.71 169,313.25 177,778.91

Cost of Direct materials 1,316,332.35 1,535,721.08 1,612,507.13 1,693,132.49 1,777,789.11

295
Table: Cost of goods sold (large size)
Cotton Webbing
2026 2027 2028 2029 2030
Description Amount (Php) Description Amount (Php) Description Amount (Php) Description Amount (Php) Description Amount (Php)
Beginning Inventory Beginning Inventory Beginning Inventory Beginning Inventory
Beginning Inventory (BI)
(BI) (BI) (BI) (BI)
Coconut Husk Coconut Husk 5,429.01 Coconut Husk 5,700.46 Coconut Husk 5,985.48 Coconut Husk 6,284.76
Cotton Webbing Cotton Webbing 27,550.20 Cotton Webbing 28,927.71 Cotton Webbing 30,374.10 Cotton Webbing 31,892.80
Adhesive Glue Adhesive Glue 20,257.50 Adhesive Glue 21,270.38 Adhesive Glue 22,333.89 Adhesive Glue 23,450.59
Heavy Duty Thread Heavy Duty Thread 8,440.63 Heavy Duty Thread 8,862.66 Heavy Duty Thread 9,305.79 Heavy Duty Thread 9,771.08
eCOIR BAG Tag eCOIR BAG Tag 2,701.00 eCOIR BAG Tag 2,836.05 eCOIR BAG Tag 2,977.85 eCOIR BAG Tag 3,126.75
0.00 64,378.34 67,597.25 70,977.11 74,525.97

Coconut Husk 54,290.10 57,004.61 59,854.84 62,847.58 65,989.96

Cotton Webbing 275,502.00 289,277.10 303,740.96 318,928.00 334,874.40
Adhesive Glue 202,575.00 212,703.75 223,338.94 234,505.88 246,231.18
Heavy Duty Thread 84,406.25 88,626.56 93,057.89 97,710.79 102,596.32
eCOIR BAG Tag 27,010.00 28,360.50 29,778.53 31,267.45 32,830.82
TOTAL 643,783.35 675,972.52 709,771.14 745,259.70 782,522.69

TOTAL MATERIALS 643,783.35 740,350.85 777,368.40 816,236.81 857,048.66

Less ending Inventory

Coconut Husk 5,429.01 5,700.46 5,985.48 6,284.76 6,599.00
Cotton Webbing 27,550.20 28,927.71 30,374.10 31,892.80 33,487.44
Adhesive Glue 20,257.50 21,270.38 22,333.89 23,450.59 24,623.12
Heavy Duty Thread 8,440.63 8,862.66 9,305.79 9,771.08 10,259.63
eCOIR BAG Tag 2,701.00 2,836.05 2,977.85 3,126.75 3,283.08
64,378.34 67,597.25 70,977.11 74,525.97 78,252.27

Cost of Direct materials 579,405.02 675,972.52 709,771.14 745,259.70 782,522.69

296
Table: Benefits and Contribution in 2026

Position No. of Personnel Basic Salary SSS Philhealth Pag-ibig Total Monthly Salary Annual Salary 13th Month pay Annual Total Cost of Sales Operating Expenses
Production Worker (Sewing
7
and cutting) 11,520.00 1,152.00 345.60 230.40 PHP 1,728.00 PHP 9,792.00 PHP 117,504.00 PHP 9,792.00 PHP 127,296.00 PHP 891,072.00 PHP 891,072.00
Machine Operator 3 11,520.00 1,152.00 345.60 230.40 PHP 1,728.00 PHP 9,792.00 PHP 117,504.00 PHP 9,792.00 PHP 127,296.00 PHP 381,888.00 PHP 381,888.00
Operation Specialist 1 25,000.00 2,500.00 750.00 500.00 PHP 3,750.00 PHP 21,250.00 PHP 255,000.00 PHP 21,250.00 PHP 276,250.00 PHP 276,250.00 PHP 221,000.00 PHP 55,250.00 80% COS and 20% OPEX
Sales Person 1 11,520.00 1,152.00 345.60 230.40 PHP 1,728.00 PHP 9,792.00 PHP 117,504.00 PHP 9,792.00 PHP 127,296.00 PHP 127,296.00 PHP 127,296.00
Driver/Utility personnel 1 11,520.00 1,152.00 345.60 230.40 PHP 1,728.00 PHP 9,792.00 PHP 117,504.00 PHP 9,792.00 PHP 127,296.00 PHP 127,296.00 PHP 127,296.00
General Manager 1 35,000.00 3,500.00 1,050.00 700.00 PHP 5,250.00 PHP 29,750.00 PHP 357,000.00 PHP 29,750.00 PHP 386,750.00 PHP 386,750.00 PHP 309,400.00 PHP 77,350.00 80% COS and 20% OPEX
Administrative Officer 1 25,000.00 2,500.00 900 500.00 PHP 3,900.00 PHP 21,100.00 PHP 253,200.00 PHP 21,100.00 PHP 274,300.00 PHP 274,300.00 PHP 274,300.00

2026 PHP 2,464,852.00 PHP 1,803,360.00 PHP 661,492.00

Table: Benefits and Contribution in 2027

Production Worker (Sewing
7 11,865.60
and cutting) 1,186.56 355.97 237.31 PHP 1,779.84 PHP 10,085.76 PHP 121,029.12 PHP 10,085.76 PHP 131,114.88 PHP 917,804.16 PHP 917,804.16
Machine Operator 3 11,865.60 1,186.56 355.97 237.31 PHP 1,779.84 PHP 10,085.76 PHP 121,029.12 PHP 10,085.76 PHP 131,114.88 PHP 393,344.64 PHP 393,344.64
Operation Specialist 1 25,750.00 2,575.00 772.50 515.00 PHP 3,862.50 PHP 21,887.50 PHP 262,650.00 PHP 21,887.50 PHP 284,537.50 PHP 284,537.50 PHP 227,630.00 PHP 56,907.50 80% COS and 20% OPEX
Sales Person 1 11,865.60 1,186.56 355.97 237.31 PHP 1,779.84 PHP 10,085.76 PHP 121,029.12 PHP 10,085.76 PHP 131,114.88 PHP 131,114.88 PHP 131,114.88
Driver/Utility personnel 1 11,865.60 1,186.56 355.97 237.31 PHP 1,779.84 PHP 10,085.76 PHP 121,029.12 PHP 10,085.76 PHP 131,114.88 PHP 131,114.88 PHP 131,114.88
General Manager 1 36,050.00 3,605.00 1,081.50 721.00 PHP 5,407.50 PHP 30,642.50 PHP 367,710.00 PHP 30,642.50 PHP 398,352.50 PHP 398,352.50 PHP 318,682.00 PHP 79,670.50 80% COS and 20% OPEX
Administrative Officer 1 25,750.00 2,575.00 772.50 515.00 PHP 3,862.50 PHP 21,887.50 PHP 262,650.00 PHP 21,887.50 PHP 284,537.50 PHP 284,537.50 PHP 284,537.50

2027 PHP 1,857,460.80 PHP 683,345.26

Table: Benefits and Contribution in 2027

Production Worker (Sewing
7 12,221.57
and cutting) 1,222.16 366.65 244.43 PHP 1,833.24 PHP 10,388.33 PHP 124,659.99 PHP 10,388.33 PHP 135,048.33 PHP 945,338.28 PHP 945,338.28
Machine Operator 3 12,221.57 1,222.16 366.65 244.43 PHP 1,833.24 PHP 10,388.33 PHP 124,659.99 PHP 10,388.33 PHP 135,048.33 PHP 405,144.98 PHP 405,144.98
Operation Specialist 1 26,522.50 2,652.25 795.68 530.45 PHP 3,978.38 PHP 22,544.13 PHP 270,529.50 PHP 22,544.13 PHP 293,073.63 PHP 293,073.63 PHP 234,458.90 PHP 58,614.73 80% COS and 20% OPEX
Sales Person 1 12,221.57 1,222.16 366.65 244.43 PHP 1,833.24 PHP 10,388.33 PHP 124,659.99 PHP 10,388.33 PHP 135,048.33 PHP 135,048.33 PHP 135,048.33
Driver/Utility personnel 1 12,221.57 1,222.16 366.65 244.43 PHP 1,833.24 PHP 10,388.33 PHP 124,659.99 PHP 10,388.33 PHP 135,048.33 PHP 135,048.33 PHP 135,048.33
General Manager 1 37,131.50 3,713.15 1,113.95 742.63 PHP 5,569.73 PHP 31,561.78 PHP 378,741.30 PHP 31,561.78 PHP 410,303.08 PHP 410,303.08 PHP 328,242.46 PHP 82,060.62 80% COS and 20% OPEX
Administrative Officer 1 26,522.50 2,652.25 795.68 530.45 PHP 3,978.38 PHP 22,544.13 PHP 270,529.50 PHP 22,544.13 PHP 293,073.63 PHP 293,073.63 PHP 293,073.63

2028 PHP 1,913,184.62 PHP 703,845.62

297
7.1.5.1 Projected Income Statement

This part will show the financial picture of the proposed business’s forecasted sales, cost

of sales and expenses. Income statements is one of the financial statements used to keep track of

a company’s financial performance throughout the year.

Table 145: Projected Statements of Operations

2026 2027 2028

SALES REVENUE PHP 6,883,783.74 PHP 7,517,091.84 PHP 8,366,523.22

\
COST OF GOODS SOLD 4,467,519.74 4,859,911.55 5,048,455.69
PHP 0.65
GROSS PROFIT 2,416,264.00 2,657,180.29 3,318,067.53
35.10% 35.35% 39.66%
OPERATING EXPENSES
Operation Specialist 55,250.00 56,907.50 58,614.73
Sales Person 127,296.00 131,114.88 135,048.33
Driver/Utility Personnel 127,296.00 131,114.88 135,048.33
General Manager 77,350.00 79,670.50 82,060.62
Administrative Officer 274,300.00 284,537.50 293,073.63
Depreciation of office equipment 12848.19 11,012.73 11,012.73
Depreciation of Factory Building 4480.00 3840.00 3840.00
Utilities 224277.18 224344.46 224411.76
Raw Materials 323039.60 323,459.55 323,880.05

Logistics and Transportation 139,860.00 140,041.82 140,223.87

Marketing and Distribution 73000.00 73094.90 73189.92
Taxes and Licenses 113630.00 41,119.00 53,454.70
Miscellaneous Expenses 168643.00 170835.36 17457.70
Lease Obligations 21478.00 21048.44 20627.47
Rent Expenses 24000.00 24720.00 25461.60
Internet Expenses 13200.00 13596.00 14003.88
Inerest expense 5301.00 4871.44 4450.47
Maintenance 163934.35 168852.38 173917.95

1,949,183.32 1,904,181.34 1,789,777.73

NET INCOME BEFORE TAX 467,080.69 752,998.95 1,528,289.80

6.79% 10.02% 18.27%

INCOME TAX EXPENSE 303,602.45 489,449.32 993,388.37

NET INCOME PHP 163,478.24 PHP 263,549.63 PHP 534,901.43

PHP 6,883,783.74 PHP 7,517,091.84 PHP 8,366,523.22

298
 Share of Each of the 5 Partners PHP 32,695.65 PHP 52,709.93 PHP 106,980.29

7.1.5.2 Projected Balance Sheet

In order to know the future financial position of the proposed business, including a forecast

of the business assets, liabilities and capital a projected balance sheet is used.

Projected Statements of Financial Condition

Table 146: Balance Sheet

Years Ended December 31. 2026, 2027, and 2028

Decembr 31, Decembr 31,
Decembr 31, 2027
2026 2028

Current Assets

Cash 236,219.44 807,321.75 446,166.87

Accounts receivables 688,378.37 751,709.18 836,652.32

Inventory 242,941.45 255,088.52 267,842.94

Prepaid Expense 4,000.00 4,000.00 4,000.00

Total Current Assets 1,171,539.26 1,818,119.46 1,554,662.13

Non-Current Assets

Land 404,430.00 404,430.00 404,430.00

Building 2,000,000.00 2,000,000.00 2,000,000.00

Less: Accumulated Depreciation 89,600.00 166,400.00 243,200.00

Net Book Value 1,910,400.00 1,833,600.00 1,756,800.00

Property, Plant & Equipment (PPE) 1,152,711.00 1,152,711.00 1,152,711.00

Less: Accumulated Depreciation 133,936.33 248,738.90 363,541.48

299
 Net Book Value 1,018,774.67 903,972.10 789,169.52
Office, Emergency, Other
Equipments 94,631.90 94,631.90 94,631.90
Less: Accumulated Depreciation 12,848.19 23,860.92 34,873.65
Net Book Value 81,783.72 70,770.99 59,758.26

Total Non-current Assets 3,415,388.38 3,212,773.08 3,010,157.78

PHP PHP PHP

TOTAL ASSETS
4,586,927.64 5,030,892.54 4,564,819.91

PAYABLES
Accounts Payable 194,353.16 204,070.81 214,274.35

Finance Lease Obligations 388,253.00 372,076.00 355,899.00

Income Tax Payable 303,602.45 489,449.32 993,388.37

Accrued Expenses 37,240.79 38,268.53 39,328.88

TOTAL PAYABLES 923,449.40 1,103,864.66 1,602,890.61

PARTNERS CAPITAL

Partners Capital 3,663,478.24 3,927,027.88 4,461,929.31

Less: Partners Drawing 0.00 0.00 -1,500,000.00

TOTAL CAPITAL 3,663,478.24 3,927,027.88 2,961,929.31

TOTAL PAYABLES AND PHP PHP PHP

PARTNERS CAPITAL 4,586,927.64 5,030,892.54 4,564,819.91

300
7.1.5.3 Projected Statement of Cash Flow

Here are the lists of all expected cash inflows and outflows of the coming year.

Projected Statement of Cash Flows

For the Years Ended December 31

2026 2027 2028

Cash Flows from Operating
Activities
Net Income Before Tax PHP 467,080.69 PHP 752,998.95 PHP 1,528,289.80
: Adjustments
Add: Depreciation Expense on
Property, Plant, and equipment 133,936.33 114,802.57 114,802.57
Add: Depreciation Expense on
12,848.19 11,012.73 11,012.73
Office Equipment
Add: Depreciation Expense on
89,600.00 76,800.00 76,800.00
Building
Increase in accounts receivable -688,378.37 -63,330.81 -84,943.14
Increase in inventories -242,941.45 -12,147.07 -12,754.43
Increase in accounts payable 194,353.16 9,717.66 10,203.54
Net Increase in Accrued
37,240.79 1,027.73 1,060.35
Expenses
Payment of Income Tax
-303,602.45 -489,449.32
Payable
Net Increase in Other Payables 0.00 0.00 0.00

Net Cash from Operating

3,739.34 587,279.32 1,155,022.11
Activities

Cash Flows Investing

Activities
Acquisition of Property, Plant,
-1,152,711.00 0.00 0.00
and equipment
Acquisition of Office
-94,631.90 0.00 0.00
Equipment
Acquisition of Building -2,000,000.00 0.00 0.00
Payment of prepaid rent -4,000.00 0.00 0.00
0.00

301
 Net Cash Used in Investing
-3,251,342.90 0.00 0.00
Activities

Cash Flows from Financing

Activities
Contributions from Partners 3,500,000.00 - -
Paument of finance lease
-16,177.00 -16,177.00 -16,177.00
obligation
Withdrawal of partnersshare in
0.00 0.00 -1,500,000.00
accumulated income

Net Cash From (Used In)

3,483,823.00 -16,177.00 -1,516,177.00
Financing Activities

Net Increase in Cash 236,219.44 571,102.32 -361,154.89

Add: Cash, Beginning - 236,219.44 807,321.75

Cash at the End of the Year PHP 236,219.44 PHP 807,321.75 PHP 446,166.87

7.1.6 Payback Period

Initial Investment = PHP 3,247,342.90

Year Net Cash Inflows (PHP) Cumulative Cash Inflows

(PHP)
2026 3,739.34 3,739.34
2027 587,279.32 591,018.66
2028 1,155,022.11 1,746,040.77
2029 1,722,764.90 3,468,805.67

By the year 2028, the investment has not fully recovered. Assuming a similar increase, we estimate

2029 Net Cash Inflow as:

1,155,022.13

+ 567,742.79

302
 1,722,764.90

Remaining year to recover investment

Remaining amount to recover

Payback Period =
2029 Cash Flow

1,501,302.13
Payback Period =
1,722,764.90

Payback Period = 0.87 𝑦𝑒𝑎𝑟𝑠

The initial investment will be recovered in approximately 3.87 years or 3 years and 10.5 months

303
 CHAPTER VIII.

SOCIO-ECONOMIC DESIRABILITY ASPECT

This chapter presents the social and economic impact of eCOIR Bags, emphasizing its

contributions to employment, sustainability, and the local economy. It highlights how the business

interacts with social and economic factors, enhances environmental conservation, and contributes

to the community’s well-being.

8.1 Socio-Economic and Environmental Goals

The eCOIR Bags initiative is a response to the Municipality of Bantayan’s Resolution No.

349, Ordinance No. 20, Series of 2019, which strictly prohibits the use of single-use plastic bags.

By offering durable, biodegradable, and eco-friendly alternatives, eCOIR Bags supports the Balik

Basket Program, a local initiative promoting reusable packaging solutions. Our business not only

aligns with the municipality’s sustainability goals but also contributes to the growing demand for

environmentally conscious products. The establishment of eCOIR Bags supports economic

development and environmental conservation in Bantayan Island. By utilizing coconut coir, an

abundant local resource, the business provides sustainable livelihood opportunities while

addressing the island’s plastic waste problem. The following socio-economic and environmental

goals guide the company’s operations:

Personal Benefits

The eCOIR Bags business provides individuals with an eco-friendly and sustainable

alternative to plastic bags. Customers benefit from high-quality, durable, and reusable bags that

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help reduce reliance on single-use plastics. Additionally, the business fosters environmental

awareness among consumers, encouraging responsible consumption and sustainable habits.

Economic Benefits

The establishment of eCOIR Bags generates employment opportunities for local coconut

farmers, coir processors, and artisans in Bantayan Island. By supporting the local economy, the

business enhances income stability for workers involved in raw material collection, production,

and sales. Additionally, the business contributes to local commerce by partnering with eco-friendly

shops, markets, and distributors, boosting economic activity in the community.

Environmental Benefits

The eCOIR Bags business plays a significant role in reducing plastic waste by offering

biodegradable and reusable alternatives. By promoting the use of coconut coir-based bags, the

business helps minimize environmental pollution, particularly in coastal areas where plastic waste

is a major concern. Furthermore, the company supports sustainable coconut farming practices,

ensuring that raw material sourcing remains environmentally responsible and contributes to long-

term ecological balance.

8.2 Impact Assessment

Impact assessment helps guide business decision-making by evaluating both the positive

and negative effects of a business on society. eCOIR Bags aims to reduce plastic waste, support

local coconut farmers, and provide sustainable livelihood opportunities. This assessment examines

its impact on demographics, market reach, income, and employment to help stakeholders make

informed decisions.

Demographic Impact

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 The eCOIR Bags business serves a diverse customer base, including local residents,

businesses, and tourists seeking sustainable alternatives. Its eco-friendly products align with the

Bantayan Island plastic ban ordinance, making them accessible to individuals regardless of gender,

occupation, or income level. By promoting sustainability, the business encourages environmental

awareness across different sectors of the community.

Selling Market Impact

As demand for eco-friendly products grows, eCOIR Bags strategically targets both local

and regional markets. The business leverages online platforms, partnerships with local stores, and

participation in environmental programs like the Balik Basket Program to expand its reach.

Marketing efforts focus on social media engagement and collaborations with eco-conscious

businesses to strengthen brand awareness and consumer adoption.

Income and Employment Impact

The eCOIR Bags business will generate employment for coconut farmers, coir processors,

and production workers, ensuring a stable source of income for them. By sourcing raw materials

from local farmers, the business will stimulate the agricultural sector while improving livelihoods.

Additionally, artisans involved in bag production will gain a reliable income, fostering economic

growth within the community.

Tax Contribution

The eCOIR Bags business is legally required to pay taxes, including income tax, business

permit fees, and value-added tax (VAT) on sales. These contributions help fund public

infrastructure, environmental programs, and economic initiatives. By complying with tax

306
regulations, eCOIR Bags supports sustainable development while promoting eco-friendly

alternatives in the market.

8.3 Cost-Benefit Analysis

Assessing costs and benefits helps determine the financial viability of eCOIR Bags. The

revenue reflects annual gross income, while costs include raw materials, labor, operations, and

marketing expenses. The profitability index is evaluated using the cost-benefit ratio:

CHAPTER IX. SUMARY OF FINDINGS, AND RECOMMENDATIONS

9.0 Summary of Findings

The purpose of this study is to determine whether producing eCOIR BAG in the Municipality of

Bantayan is a practical and sustainable alternative to single-use plastic bags. With the increasing concern

307
over plastic waste and the availability of coconut husks in the area, the study explores the potential of

turning these byproducts into eco-friendly bags that can benefit both the environment and the local

economy.

The research examines market demand, production requirements, financial feasibility, and

environmental impact. Surveys and data analysis show that many businesses and consumers are

willing to use eCOIR bags, especially with the existing local ordinance limiting plastic use. The

study also looks into the cost of production, availability of raw materials, and the necessary

equipment and labor to ensure smooth operations. Financial projections suggest that the business

can be profitable while keeping prices competitive.

The findings support the idea that this business can help reduce plastic waste, provide

additional income opportunities for coconut farmers, and promote sustainable practices. With

proper planning and support, the production of coconut coir bags in Bantayan has the potential to

succeed and make a positive impact.

Findings

A. Marketing Aspect

• The target market for eCOIR Bags includes local businesses, residents, and

environmentally conscious consumers in the Municipality of Bantayan. With Ordinance

No. 20, Series of 2019, restricting the use of single-use plastic bags, there is a growing

308
 demand for sustainable alternatives, making eCOIR Bags a suitable option. The main

buyers are individuals aged 18-70, as well as local retailers and other businesses.

• Using demand and supply analysis, the study estimates a strong potential market for

eCOIR Bags. Surveys and projections suggest that consumers prefer eco-friendly options,

especially given Bantayan’s environmental policies. Local businesses such as grocery

stores and souvenir shops have been identified as key distribution points.

• The business faces competition from other reusable bag alternatives, including canvas,

woven, and synthetic bags sold by local stores. However, eCOIR Bags distinguish

themselves through their biodegradable material, durability, and alignment with

sustainability efforts. By positioning the brand as an eco-friendly solution that supports

the local coconut industry, the business aims to create a unique market presence.

• The marketing strategy focuses on raising awareness through social media, partnerships

with local government units, and promotional campaigns. The business plans to utilize

digital marketing, printed materials, and participation in environmental initiatives to

attract customers. Offering discounts for bulk purchases and collaborating with eco-

conscious organizations will further strengthen market reach.

• The business aims to build strong branding by emphasizing its commitment to

sustainability and local production. Labeling will highlight the environmental benefits of

eCOIR Bags, and the company will use online platforms such as Facebook to engage

with potential customers and promote product awareness.

B. Technical Aspect

309
 • The production of eCOIR Bags will require specialized machinery, including a coconut

husk defibering machine, hydraulic press, industrial sewing machines, spraying

machines, and drying machines. These machines are essential for processing coconut

fibers into durable and eco-friendly bags. The equipment will be sourced from outside

Bantayan, requiring careful planning for transportation and maintenance.

• The production facility is located in Barangay Kampingganon, which is strategically

chosen for its proximity to coconut suppliers. The facility is designed to accommodate

the processing of coconut coir, bag assembly, storage, and office operations.

• The workforce needed for the operation consists of 15 personnel, including a General

Manager, Operations Specialist, Administrative Officer, Machine Operators,

Tailors, a Cutter, a Driver, and Physical Store Receptionist. Each role is essential for

ensuring smooth operations, quality production, and efficient distribution.

• Quality control measures are in place to maintain product standards. Inspections will be

conducted at different stages, including raw material selection, fiber processing,

adhesive application, stitching, and final product inspection. These steps ensure that

eCOIR Bags meet durability and usability requirements.

• Proper maintenance of machinery is essential to avoid production delays. Machine

operators will be responsible for routine checks and minor repairs, while partnerships

with technical support providers will be established for major servicing needs.

Management Aspect

310
• The business will be established as a corporation, allowing for structured management,

easier access to funding, and limited financial risks for shareholders. This setup ensures

long-term stability and better decision-making through a board of directors.

• Employee motivation and productivity are key priorities. The company will provide

incentives and recognition programs for outstanding performance. This will include

bonuses, employee awards, and training opportunities to maintain a positive work

environment.

• A structured employee conduct and discipline policy will be in place. Violations will be

categorized based on severity, with corresponding disciplinary actions ranging from

verbal warnings to suspension or termination. The company aims to implement a fair

and transparent disciplinary system to ensure professionalism in the workplace.

Roles and Responsibilities of Key Personnel:

1. General Manager

o Oversees the overall business operations.

o Ensures that company activities align with goals and objectives.

o Makes major business decisions and supervises department heads.

o Monitors financial performance, including budgeting and cost control.

o Handles employee training, hiring, and policy implementation.

o Represents the company in dealing with stakeholders and government

compliance.

2. Operations Specialist

o Manages the production schedule and ensures timely completion of tasks.

311
 o Coordinates logistics and oversees the supply chain process.

o Resolves production and distribution issues to maintain efficiency.

3. Administrative Officer / HR

o Handles recruitment, employee records, and payroll processing.

o Ensures compliance with labor laws and workplace policies.

o Maintains internal communication and office operations.

4. Machine Operators

o Responsible for operating machines used in the production of eCOIR Bags.

o Ensures product quality by following manufacturing standards.

o Performs maintenance on equipment to prevent downtime.

5. Driver

o Delivers raw materials and finished products to the physical store.

o Ensures timely and safe transportation of goods.

6. Receptionist (Physical Store)

o Assists customers, handles inquiries, and processes sales transactions.

Financial Aspect

• The required starting capital for the business is Php 3,000,000.00. The desired goal of this

business is to increase the starting capital by at least 10% within the first year of operations**.

• Initial sources of capital are from the proponents of the study in a collective contribution, ensuring

sufficient funds for equipment, raw materials, and operational expenses to establish the business.

312
• The payback period in putting up the eCOIR Bag business is at approximately 3 years and 10

months (3.87 years)

Socio-Economic and Environmental Aspect

• The primary goal of eCOIR Bags is to provide an eco-friendly alternative to plastic bags

while supporting the local economy. The business aligns with the Municipality of

Bantayan’s Resolution No. 349, Ordinance No. 20, Series of 2019, which bans single-

use plastics. By offering reusable and biodegradable coconut coir bags, the business helps

promote sustainable practices in the community.

• The business creates economic opportunities by generating jobs for local coconut

farmers, coir processors, and production workers. It provides additional income to

those involved in raw material collection, manufacturing, and distribution. Partnerships

with local retailers and eco-conscious businesses further boost economic activity in

Bantayan.

• The environmental impact of eCOIR Bags is significant. By replacing plastic with

biodegradable and reusable bags, the business contributes to reducing waste,

particularly in coastal areas where plastic pollution is a major concern. The use of

coconut coir also supports sustainable coconut farming, ensuring responsible sourcing

of materials without harming the environment.

• The company actively engages in environmental awareness campaigns to educate

consumers on the benefits of reusable products. By participating in programs like the

Balik Basket Program, eCOIR Bags encourages responsible shopping habits and

promotes long-term sustainability.

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 • As a legally registered business, eCOIR Bags contributes to local tax revenue,

supporting public infrastructure, environmental projects, and community development.

Through tax compliance and ethical business practices, the company strengthens the

economy while maintaining its commitment to sustainability.

9.1 Conclusions

9.3 Recommendations

BIBLIOGRAPHY

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ahead. Reviews on environmental health, 28(1), 1-8.

(2) Zhang, H., Pap, S., Taggart, M. A., Boyd, K. G., James, N. A., & Gibb, S. W. (2020). A

review of the potential utilisation of plastic waste as adsorbent for removal of hazardous

priority contaminants from aqueous environments. Environmental Pollution, 258, 113698.

(3) Awuchi, C. G., & Awuchi, C. G. (2019). Impacts of plastic pollution on the sustainability of

seafood value chain and human health. International Journal of Advanced Academic

Research, 5(11), 46-138.

(4) Plastic Oceans. (2024). Plastic pollution and its impact on the environment.

(5) Hossain, M. (2020). The long-term effects of plastic decomposition on the environment.

Environmental Research Journal, 15(3), 45-58.

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(6) Republic Act No. 9003, Ecological Solid Waste Management Act of 2000. (2000).

https://lawphil.net/statutes/repacts/ra2001/ra_9003_2001.html

(7) Encyclopaedia Britannica. (1982). Coconut fiber (Cocos nucifera L.). Encyclopaedia

Britannica, Inc.

(8) Food and Agriculture Organization. (2013). Coconut production and fiber industry trends.

FAO Agricultural Reports.

(9) Rahman, M. S., & Khan, M. A. (2007). Moisture absorption behavior of natural fibers: A

study on coconut fiber. Polymer Composites, 28(4)

(10) Babalola, O., & Olorunnisola, A. O. (2019). Enhancing bioplastics with coconut husk

fibers: A study on cassava starch-based composites. Journal of Natural Fiber Research

(11) Magno, M. C., Reyes, L. P., & De Guzman, T. R. (2023). Sustainability of coconut coir

as an alternative to paper and plastic packaging: A comparative study. International Journal

of Environmental Sustainability.

(12) Gregorio, J. (2015). Green marketing and consumer behavior in the Philippines: A case

study on eco-friendly shopping bags.

(13) Derick, J. (2016). The environmental impact of coconut husk disposal and air quality

concerns. Environmental Studies Journal, 22(4), 87-102.

(14) Babyloni, F., Cruz, M. P., & Santos, R. J. (2022). The market potential of coir-based eco-

bags: Addressing waste management and economic development. Journal of Sustainable

Business Practices, 10(2), 55-70.

(15) Municipality of Bantayan. (2019). Resolution No. 349, Ordinance No. 20, Series of 2019:

Regulation on single-use plastics and styrofoam packaging materials. Bantayan Local

Government Records.

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(16) Mahato, R. K., et al. (1993). Elemental and surface composition analysis of coconut

fiber. Journal of Natural Fibers, 7(3), 45-52.

(17) Rahman, M. S., & Khan, M. A. (2007). Moisture absorption characteristics of untreated

and treated coconut fibers. Polymer Testing, 26(5), 574-580.

(18) Wei, L., & Gu, H. (2009). Structural and mechanical properties of coconut coir fibers.

Materials Science and Engineering, 29(4), 876-882.

(19) Yueping, F., et al. (2010). Thermal resistance and biodegradability of coconut fiber

composites. Journal of Renewable Materials, 18(1), 112-120.

(20) Magno, J. P., et al. (2023). Comparative study of paper, plastic, and coconut coir as

sustainable packaging materials. Journal of Environmental Science and Sustainability, 12(3),

215-230.

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 APPENDICES

CURRICULUM VITAE

Name : MARCHARD B. DESUCATAN

Address: BUNAKAN, MADRIDEJOS, CEBU

Contact Number: 09977746901

Email: [email protected]

________________________________________________________________________

A. PERSONAL INFORMATION

Nationality : FILIPINO

Sex : MALE

Marital Status : SINGLE

Date of Birth : MARCH 14, 2002

Birth of Place : BUNAKAN, MADRIDEJOS, CEBU

Age : 22

Religion : ROMAN CATHOLIC

________________________________________________________________________

B. EDUCATIONAL BACKGROUND

Primary : Bunakan, Elementary School (2014-2015)

Secondary : Madridejos National High School-Senior High School (2020-2021)

Tertiary : CEBU TECHNOLOGICAL UNIVERSITY (PRESENT)

________________________________________________________________________

317
C. SKILLS

• Microsoft Literate
• Decision-making
• Can analyze data

CURRICULUM VITAE

Name : NI ÑO C. MARU

Address: MAALAT, MADRIDEJOS, CEBU

Contact Number: 09900046905

Email: [email protected]

________________________________________________________________________

A. PERSONAL INFORMATION

Nationality : FILIPINO

Sex : MALE

Marital Status : SINGLE

Date of Birth : JANUARY 22, 2001

Birth of Place : MAALAT, MADRIDEJOS, CEBU

Age : 23

Religion : ROMAN CATHOLIC

________________________________________________________________________

B. EDUCATIONAL BACKGROUND

Primary : Maalat Elementary School (2014-2015)

Secondary : Bunakan Integrated School - Senior High School (2020-2021)

Tertiary : CEBU TECHNOLOGICAL UNIVERSITY – BANTAYAN (PRESENT)

318
________________________________________________________________________

C. SKILLS

• Microsoft Literate
• Problem Solver
• Time Management

CURRICULUM VITAE

Name : RONALYN Q. QUEZON

Address: BALINTAWAK, BANTAYAN, CEBU

Contact Number: 09638620201

Email: [email protected]

________________________________________________________________________

A. PERSONAL INFORMATION

Nationality : FILIPINO

Sex : FEMALE

Marital Status : SINGLE

Date of Birth : DECEMBER 1, 2001

Birth of Place : BALINTAWAK, BANTAYAN, CEBU

Age : 23

Religion : ROMAN CATHOLIC

________________________________________________________________________

B. EDUCATIONAL BACKGROUND

Primary : Balintawak Elementary School (2013-2014)

Secondary : Bantayan National High School-Senior High School (2019-2020)

319
 Tertiary : CEBU TECHNOLOGICAL UNIVERSITY – BANTAYAN (PRESENT)

________________________________________________________________________

C. SKILLS

• Microsoft Literate
• Critical Thinker
• Analytical Reader

CURRICULUM VITAE

Name : MAE HAZEL TIBAY

Address: MARICABAN, SANTA FE, CEBU

Contact Number: 09054406255

Email: [email protected]

________________________________________________________________________

A. PERSONAL INFORMATION

Nationality : FILIPINO

Sex : FEMALE

Marital Status : SINGLE

Date of Birth : MAY 14, 2002

Birth of Place : POOC, SANTA FE, CEBU

Age : 22

Religion : ROMAN CATHOLIC

________________________________________________________________________

B. EDUCATIONAL BACKGROUND

Primary : Santa Fe Central Elementary School (2014-2015)

320
 Secondary : Santa Fe National High School-Senior High School (2020-2021)

Tertiary : CEBU TECHNOLOGICAL UNIVERSITY – BANTAYAN (PRESENT)

________________________________________________________________________

C. SKILLS

• Microsoft Literate
• Critical Thinker
• Problem Solver

CURRICULUM VITAE

Name : JEA S. VILLACIN

Address: KABAC, BANTAYAN, CEBU

Contact Number: 09369785644

Email: [email protected]

________________________________________________________________________

A. PERSONAL INFORMATION

Nationality : FILIPINO

Sex : FEMALE

Marital Status : SINGLE

Date of Birth : JUNE 08, 2002

Birth of Place : KABAC, BANTAYAN, CEBU

Age : 22

Religion : ROMAN CATHOLIC

________________________________________________________________________

B. EDUCATIONAL BACKGROUND

321
 Primary : Kabac Elementary School (2014-2015)

Secondary : Madridejos National High School-Senior High School (2020-2021)

Tertiary : CEBU TECHNOLOGICAL UNIVERSITY – BANTAYAN (PRESENT)

________________________________________________________________________

C. SKILLS

• Microsoft Literate
• Communication and Interpersonal Skills
• Can work under pressure

322