Buss Plann Final (ces).docx

I.

Executive Summary This business plan is specially drafted by Father Saturnino Urios University 3rd year BSBA-Marketing 3rd year S.Y 20142015 in collaboration of the Local Government Unity of Butuan City. It promotes to help the community of Anticala, Butuan City to innovate their abundant source of Abaca fiber. Profits accumulated in the business shall be use in helping the community to progress and finance projects for the place to prosper.

II.

Project Background

A.

NAME OF THE BUSINESS Butuans PRIDE Butuans Pride is a brand that can promote Butuans rich culture, by highlighting one of its abundant resources such as “ABACA” and creating products made from the latter, and making it as a raw material for products of “Butuans Pride” which will not only be profitable but also help the community of anticala

B. Project Proponents Creator (3rd year BSBA-Marketing management S.Y 2014-2015) Implementer (To be determine) C. General Description of Business Butuan

Pride

is

a

new

business

venture

that

is

a

collaboration of Father Saturnino Urios University and the

Local Government Unit to help the locals of Butuan City specifically the residence of Anticala. Using their abundant source of Abaca fiber and creating products out of the latter. It is a non-profit business venture because it primary purpose is to help the locals of Butuan, All proceeds shall be given to the community for the main purpose of cultivating the place and expanding the production of Abaca fiber. III.

Product and industry profile A. Product Profile Products that are produce by Butuan’s Pride uses the primary raw material of Abaca fiber. Products are designed to fit in today’s lifestyle specially the household and young professionals. B. Industry Profile Abaca is indigenous to the Philippines. Abaca fibers were already being woven into breathable fabrics and made into sturdy sandals in different parts of the Philippines long before the Spaniards came to the Philippines in 1521. The abaca is believed to have evolved in the Bicol region of the Philippines. Volcanic area like the provinces of Albay and Camarines Sur in the Bicol Region are suited for abaca cultivation.

The Philippines' tropical climate, rich volcanic soils and high to moderate rain fall are particularly appropriate to the growing of the abaca plant. In 1820, a US Navy lieutenant brought abaca fiber samples to the United States. Soon after, an export shipment of abaca was made to Salem, Massachusetts under the product name

of

simply

"Manila",

since

the

Philippines

was

then more known by the name of its capital city, Manila. After the opening of the port of Manila in 1834, the Americans

became

the

largest

importer

of

abaca.

The

American navy used abaca rope because it had a remarkable tensile strength as it was more resistant to salt water decomposition than most vegetable fibers. In fact, it was and still is the strongest of all natural fibers. These qualities

were

appreciated

by

other

foreign

shipping

companies as well. Up to the late 19th century, there were 12 different varieties

of

abaca.

Each

variety

has

its

certain

advantageous qualities, depending on its use. Prior to 1915, there was not a definitive standard for grading the Philippine abaca fibers. Standards were introduced in that year and have since been amended several times principally in 1927 and in 1975.

Originally, commercial production of the abaca fiber was confined

to

the

Philippines

because

abaca

is

a

plant

material that is government regulated. In about 1521, shipments of abaca root stocks were introduced into many different

tropical

countries,

including

fairly

large

plantings in Sumatra, Indonesia, in India, Andaman Islands, the West Indies and Central America. Small abaca plantings were also made in Borneo. By

1925,

the

US Department

of

Agriculture officials

attempted to grow abaca in the Central American countries of Panama, Costa Rica, Guatemala, and the Honduras by sending a shipment of propagating material of the superior varieties of abaca to said countries. Yet despite some experimental planting and efforts to expand the industry in 1931, 1939 and 1942 in several other central American countries, it remained relatively insignificant. It was only at the end of World War that a Japanese named Furukawa was successful in cultivating abaca elsewhere, in Ecuador. While other plant materials like seeds and flowers are freely

shared

among

countries.

particularly

among research centers, the abaca plant is a restricted material and government regulated. Thus, if a country other

than the Philippines claims to grow abaca, DNA testing will always trace its origin to the Philippines. Industry analysis A. Future outlook and trends To create line of products that will promote and help Anticala residence creating one of their rich resources of ABACA into products that can be useful and promoting cultural awareness. IV.

Marketing Plan A. Marketing Objectives ( one year Marketing Objectives)

1st Quarter    

Create brand recognition to customers. Stablishing quotas for sales. Testing for customer need for products. Observe Customer reaction

2nd quarter  Evaluate Customer Reaction.  Mend Customer Need.  Create ways for distribution. B. Market Analysis 1. Customer demand and analysis According to PCARRD Abaca fiber, popularly known as the Manila hemp, in international trade has made the Philippines known all over the world. The Philippines remains the world’s largest producer of abaca fiber, supplying 85% of the world’s total requirement, Also Major Importing Countries: Raw fiber- United Kingdom, United States, and Japan

Pulp – Germany, Japan, France, and USA Cordage, ropes and twines – USA, Singapore, Netherlands, UK and Canada Yarns – Italy, UK, Japan, and USA Fabrics and fibercrafts – USA, Japan, Spain, UK , and Hongkong A.

Target market

 The tourist In order to promote the rich culture of Butuan city Philippines we made a line of products that can is suitable for tourist. 

Teenagers To promote cultural awareness to teens the entrepreneurs created a line of products which teens would love.



Home Décor The Entrepreneurs created products that can be use at the household of our customers.



International Market According to PCARRD Abaca fiber is one of the main raw materials that other countries used in producing their product, Anticala can import Abaca fiber to other countries.

2.

Supply Analysis

According to an article of Philstar written By Czeriza Valencia FIDA

administrator Cecile Soriano said the government is now grooming the abaca industry to be more export-competitive through highervalue processing. “Not much attention was being given to abaca before but when typhoon Pablo destroyed most crops in Mindanao, abaca plants remained resilient,” she said. Export earnings from abaca fiber and other manufactures fell 25.1 percent in the first 10 months of the year on lower demand for pulp and raw fiber especially from the United states and Europe. Exports of raw fiber to Europe fell 19 percent year-on-year while exports of pulp to the US fell 44.9 p Abaca exports from January to October 2012 fell to $91.34 million from $122 million in the same

period

the

prior

year.

Read more: http://www.philstar.com/business/2013/02/18/910041/govt-opening-new-markets-abacafiber#ixzz3UhoMC3JP

According to the article Abaca Fiber is one of the most leading exporting materials in the Philippines, with Butuan City Exporting Abaca Fiber to other countries and making products made of abaca it will not only boom the economy of the Philippines but also Butuan City and help the community of Anticala. 3. Competitive Analysis

Places in the Philippines producers of ABACA Fiber. PROVINCE

VOLUME (mt)

%SHARE

Catanduanes

18,971

33.2

Leyte

7,089

12.4

Northern Samar

3,959

6.9

Davao Oriental

3,300

5.8

Surigao del Sur

3,105

5.4

Davao del Sur

2,994

5.2

Sulu

2,364

4.1

Bukidnon

1,993

3.5

Lanao del Sur

1,665

2.9

Southern Leyte

1,647

2.9

Competitors of Products 

Local stores in Butuan City.



Plastic wares similar to the features of abaca fiber of Butuans pride.

B. Marketing Program 1. Product Offering

Candle Holder Total Production Cost of item PHP 59

Pot mat production cost ( PHP 200)

2. Pricing (starting price)

3.     



Candle holder PHP 80.00 per pc



Pot Mat

PHP 280 per pc

Promotion Creating Flayers and pasteboards for target market to acknowledge the product. Contracting to local TV Station within the area. Contracting the radio station for advertising. Create a Trade show at Malls for Customers to be fully aware of the business. Create a website that shall promote the products at the same time the abundance of abaca in Butuan.

V.

Technical Plan A. Production and process B. Production Size and Schedule 

Production Size



Production schedule



Office hours

C. Machineries and equipment

http://cnweijin.en.alibaba.com/product/1927624225219898317/Abaca_Fiber_Making_Machine.html (No determine price yet) D. Utilities E. Production cost

VI.

Management Plan

(TO be determine in the by-laws of the implementer) VII.

Significant Risk i. Natural Cause Some natural cause like Floods, landslides and other calamity can cause for the raw material (ABACA) to have no production at all. ii. Inability for Innovation To be able to compete with other products made of Abaca it is mandatory to always innovate product that will suit the preference of the customers. iii. New technologies Products of Butuans Pride is not the like the old concept of native products, but it fits today’s generation. The Entrepreneurs where able to forecast the market before drafting

this

evaluating

the

business market

products. VIII.

Financial Plan A. Major Assumption B. Financiers C. Projected Sales D. Projected cost of Goods sold E. Schedule of operating expense F.

plan, before

asking

questions

and

conceptualizing

the