CHAPTER 1

THE PROJECT STUDY

I. Introduction

People deal with lots of daily elements in life, sometimes requiring them to just take
everything easy or exert much effort just to surpass a day. With all these hassles and
conveniences, the feet are ones of the most physically used body parts, making them prone
to drying and unwanted callouses. It may seem unnecessary to take care of them as they
would be exposed yet again as another day comes nor because they are the eyes which
may have dark circles under them nor the visible skin which may have visible fine lines.
These conceptions have come to the knowledge of the researchers, and they therefore
would like to promote the use of moisturizing foot cream by formulating one, namely Kramara
Cream.

II. Reasons for Conducting the Study

Human feet are very useful tools, but they are more exposed to damage than the
other parts of the body. Water, chemicals, and exposure to sun are the main causes of the
aging, or worse, damage of feet. Speaking of chemicals, there are products, like oils and
hand creams, which are formulated to ease the dryness of the skin but, in reality, causes
more damage to it.
The researchers conducted this study to know if the foot cream product to be
formulated will be feasible in the market. The researchers have come up with the idea of a
moisturizing cream made up of avocado oil forming the base together with the other
ingredients, and peppermint oil or bamboo oil contributing as the respective essential oils.
The said ingredients are very well-known for the benefits they give to the skin, and the
researchers would like to introduce them for the reason that avocado oil, peppermint oil, and
bamboo oil are seldom used as ingredients for creams.

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III. Benefits of the Study

The benefit of the study is based on socio-economic aspect of the business. The
proposed business is not just about obtaining profit, but also to contribute to the social as well
as to the economic advancement of the community. One of the benefit is to give satisfaction to
the consumers by offering them our foot cream product that will be used for their consumption.
The business will also contribute to the economy of the country by means of paying the legal
requirements. In academic field, it is intended to serve as a reference or guide to students
particularly the College of Business Education (CBE) Department who will be conducting future
researches in relation with this kind of study.

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 CHAPTER II
SUMMARY OF THE PROJECT STUDY

I. Name of the Firm

Not just the proposed product has been well considered by the researchers, but also
the latter’s firm name, Kramara Miya Ltd.
Kramara stands for the combination of the initial letters of every researcher’s name
(Kathleen, Remarie, April, Mikaella, Arjean, Regine, and Angela). It was, however,
unexpected that it would turn out beautifully when pronounced. On the other hand, Miya is
actually a name of Japanese origin which means “increasingly beautiful.” With the purpose
of beautifying every individual even in one simple way, such as the formulation of
moisturizing foot cream, Miya has been regarded by the researchers to justify such a
purpose.
Taking the two together, Kramara Miya is a company that has the advocacy of giving
every individual the beauty one may easily neglect and maintaining the youthfulness of one
of the most hardworking body parts an individual has, the feet. Every member of Kramara
Miya has taken wholeheartedly the project they have started, and this is what makes
Kramara Miya increasingly beautiful.

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II. Logo

Company Logo

Figure 2.1

Kramara Miya’s advocacy is to give every individual the beauty and youthfulness
he/she deserves. The company logo consists of (1) a drop of oil which also resembles an
avocado, (2) peppermint leaves, (3) twig of beautiful maple leaves, and (4) the name of the
company. The following are the reasons the researchers chose these symbols for the logo:

1. The product of the company had undergone a lot of changes—firstly having only one
planned product, a moisturizing cream made of avocado and peppermint oils, therefore
settling with the logo the Kramara Miya have right now. In line with this, the researchers
thought of a design where the images of an oil drop, avocado, and peppermint leaves are
combined to form a glowing, lively image.
a. The peppermint leaves which seemed to spring out from the oil symbolizes life and
youthfulness which the company advocates.
b. The yellow drop of oil, which also resembles the avocado, symbolizes that the product
will give a bright and uplifting feeling to those who will use it.
c. The twig of beautiful maple leaves which sprang from the original logo symbolizes that
not only the benefits of the avocado and peppermint oil or bamboo oil can be enjoyed
from the product, but also the other benefits that the product will give, like the calming,
aromatic, and delightful sensations.

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2. The colors used in the logo – yellow, green, and brown – represent nature and environment.
In line with the advocacy of Kramara Miya to be an eco-friendly company, it campaigns for
the safety and protection of the environment. This is why the researchers spent their time
and formulated a product that will positively contribute to the society and to the Mother
Nature. Also, the colors symbolize life, health, growth, youthfulness, happiness, and hope--
all being natural.

3. A company cannot operate and be well-known if it has no name. This is why the researchers
came up with the name Kramara Miya. The first word, Kramara, stands for the initial letters
of the names of the researchers (Kathleen, Remarie, April, Mikaella, Arjean, Regine, and
Angela), and the second word, Miya, a Japanese word, means "increasingly beautiful.”
Kramara Miya wants to make a mark to everyone that it is not just a company producing
essential products, but it also compassionately wants to contribute to the welfare of the
environment and help everyone to have a happy, youthful, beautiful life.

4. The brown oval shape that binds all the symbols firstly represents unity. The company
believes that there is success in unity. Unifying all the things that the product comprises
results in the success and attainment of the goals of the company. Secondly, it represents
eternity. The company introduces a new way, through the Kramara Cream, on how everyone
will have a youthful, eternal beauty.

5. The light green background symbolizes coolness and calmness as well as comfortability and
healthy disposition. Individuals will feel the calming qualities of the product, as well as
comfort and delight, when they use it.

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Product Logo

Figure 2.2 Figure 2.3

PEPPERMINT BAMBOO

The logo of the product, Kramara Cream, has a resemblance with the company
logo, except that the name of the product and the circle shapes surrounding every variant
have been adjusted to incorporate them with the respective scents. The word Kramara came
from the initial letters of the names of the researchers (Kathleen, Remarie, April, Mikaella,
Arjean, Regine, and Angela), and the word Cream presents the type of the product being
offered. When taken together, they produce the name of the brand, Kramara Cream.

On the Peppermint’s logo, a yellow drop of oil can be seen, and this resembles an
avocado. There are also peppermint leaves crowning it basically representing the
peppermint leaves used in the product.

Nothing much has been changed on the logo of Bamboo for a yellow drop of oil can
still be seen, and again, this resembles an avocado.

The circle shapes surrounding the logos set the latter apart signifying their
respective scents. Like the oval shape in the company logo, the circle shape signifies the
unity exhibited by the researchers and all members of the Kramara Miya Ltd. in producing
the Kramara Cream and formulating the components of it. Aside from the unity represented
by the circle shape, the product’s long-lasting qualities are also being emphasized through
it.

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III. Location

Considering Marikina City as a highly industrial and residential city in Metro Manila,
the researchers looked for production facilities within and around the said city. Since it is a
good location to build such an establishment and its facilities, the researchers decided to
locate Kramara Miya’s production facility, as well as its store and main office, in Corner J.
Molina, Marikina City. Moreover, the researchers found it less expensive to do so as the rent
is only ₱30,000.

Figure 2.4

IV. Nature/Kind/Form

Kramara Miya Ltd. is in an industry specializing in health care, particularly in foot

care. As the feet are one of the busiest body parts of every individual, the researchers
thought of a solution to maintain the smoothness and the softness of the skin, thus, the
objective of producing a product that soothes, smoothens, softens, and heals away the
dryness of the feet of the users.

Kramara Miya is a partnership composing of seven (7) partners (Kathleen, Remarie,

April, Mikaella, Arjean, Regine, and Angela) who are also the researchers of Kramara

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Cream, and from which “Kramara” stands its name for--the combination of the initial letters
of every researcher’s name. On the other hand, Miya is actually a name of Japanese origin
which means “increasingly beautiful.” With the purpose of beautifying every individual’s feet
even in one simple way, such as the formulation of moisturizing cream, “Miya” has been
regarded by the researchers to justify such a purpose.

Taking the two together, Kramara Miya is a company that has the advocacy of giving
every individual the beauty one may easily neglect and maintaining the youthfulness of one
of the most hardworking body parts an individual has, the feet. Every member of Kramara
Miya has taken wholeheartedly the project they have started, and this is what makes
Kramara increasingly beautiful.

Kramara Miya is a manufacturing company that produces and sells its own product,
Kramara Cream. Kramara Cream is a moisturizing cream with avocado oil as its carrier oil
founding the cream and peppermint oil or bamboo oil as its essential oil. It gives the
satisfying feeling of moisturizing effect through the avocado oil and the cooling effect and
aromatherapy the peppermint oil and bamboo oil give.

Kramara Miya, being a manufacturing company, is the one formulating its own
product; therefore, it needs a production facility where Kramara Cream may be materialized.
The researchers decided to search their production facility around Marikina City because of
its status of being a highly industrial and residential city in Metro Manila. Since it is a good
location to build such an establishment, the researchers decided to locate Kramara Miya’s
production facility in Corner J. Molina, as they found it cheaper and convenient to do so.

Not only that the researchers are the manufacturers of Kramara Cream for they are
also the sellers of the latter; thus, they have decided to build a physical store adjoining their
production facility.

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 CHAPTER III
PROPONENT, MANAGEMENT, AND PERSONNEL

I. Proponent

Kramara Miya is a partnership composing of seven (7) partners. Each partner

possesses great responsibility in keeping the stability and sustainability of the company. The
following is the list of members and their contributions in the partnership:

Table 3.1 Proponent

PARTNERS CITIZENSHIP ADDRESS CONTRIBUTIONS

General Partner/Managing Partner
Mikaella Angela T. Tuazon Filipino Blk 5 Lot 20 Santan V St., PHP 1,000,000
Fortune, Marikina City
Regine M. Asug Filipino 115 Kagawad Road, PHP 550,000
Talanay Area-C, Batasan
Hills, Quezon City
Arjean J. Silvestre Filipino 0483 Kasibulan St. Brgy. PHP 550,000
Palangoy, Binangonan,
Rizal
Kathleen A. Teocson Filipino 115 R. Reyes St. San PHP 550,000
Jose, Rodriguez, Rizal
Remarie B. Tugade Filipino 228 Ermin Garcia St. PHP 550,000
Brgy. Silangan, Quezon
City
Limited Partners
Angela V. Padua Filipino 0142 Area-7 Brgy. PHP 400,000
Botocan, Quezon City
April Joy C. Tolentino Filipino 30 Aranga St. Proj. 3, PHP 400,000
Quezon City

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 There are two types of partners comprising Kramara Miya Ltd.; and they are the (1)
General Partner and (2) the Limited Partner.

1. Tuazon, a general partner, is basically the owner of the partnership, who, like the other
four general partners, has an unlimited liability. She is also the managing partner and is
active in the day-to-day operations of the business. Also, if the partnership is having
insufficient capital to pay its obligations, she is liable up to the extent of her personal
property.

2. Aside from Tuazon, there are also Asug, Silvestre, Teocson, and Tugade having the
same designation. Being one, they are responsible for the overall running of the
partnership, the day-to-day financial, legal, and human resources functions. They are
given authority to act on behalf of the partnership by the partners, as stipulated in the
partnership agreement.

3. Lastly, Padua, and Tolentino are the limited partners in the partnership. Being one, they
are only liable to pay the obligations of Kramara Miya up to the extent of their
contributions, and they take no part in managing the partnership.

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II. Management

VISION

Kramara Miya envisions itself to be one of the leading companies in the industry of
manufacturing exceptional health care products, having the ultimate objectives of providing
products the consumers love and giving the satiation every user desires by maintaining
extraordinary experience and feeling in beautifying and maintaining the youthfulness of
every individual.

MISSION

To be one of the leading companies in the manufacturing of exceptional health care

products, and to satisfy every consumer’s needs, Kramara Miya practices and provides the
following in meeting its vision:

 To exercise assiduity in pursuing for the perfection of making its promising products;
 To offer ingredients of best quality in formulating its products;
 To aid the consumers with remarkable service by not just being true to its words, but by
exerting extended effort in making them feel good and satisfied; and
 To deliver astonishing quality of products with every precious time and detail spent on
every unit while having its own members of the company still being greatly considered.

CORE VALUES

 Beauty
We believe that every individual is beautiful.

 Customers’ Satisfaction
We value our customers as the foundation of our existence. We do our best to give
the satisfaction our consumers deserve.

 Quality
We guarantee that our products are of best quality, through the help of our equally
hardworking, talented, and beautiful people.

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  Integrity
We have a name to take care and live up to. We demonstrate our honesty and
integrity in all we do, publicly and privately.

 Our People
We believe that our personnel are the assets of the company. Without them,
success in our undertakings will not be possible.

 Community
We aim to be good corporate citizens. We always do our best to serve and be part
of a good community.

 Unity
Inspired with the saying “united we stand, divided we fall,” we do not just think as a
company – we are a team with a goal in mind, the betterment of everyone.
POLICIES
1. Privacy Policy
Our Privacy Policy refers to our commitment to treat every information of employees,
customers, stakeholders, and other interested parties with the utmost care and
confidentiality. We ensure that we gather, store, and handle data fairly, transparently, and
with respect towards individual rights. This policy refers to all parties (employees, job
candidates, customers, suppliers etc.) who provide any amount of information to us. Those
who are covered must follow this policy. Those who will not comply will be subject to
disciplinary and possibly legal action.
2. Conflict of Interest
Our Conflict of Interest Policy covers all prospective or current employees, even with the
customers, of the company. This refers to any situation when an employee prefers his/her
interest over the interest of the company and which will also lead to the disadvantage of the
company. In cases when a conflict of interest is deliberately covered or when a solution
cannot be found, disciplinary action may be invoked up to and including termination.
3. Health, Safety, and Welfare of Employees
Our Health, Safety, and Welfare of Employees Policy helps us preserve the best possible
work conditions for our employees for every employee has a right to feel safe at work. Along
with the company being committed to follow legal standards and create a hazard-free
workplace, it is expected of everyone to contribute to a healthy and safe workplace and to
follow health and safety instructions.

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 Management’s responsibility is to provide and maintain:
a. a safe working environment
b. safe systems of work
c. plant and substances in safe condition
d. facilities for the welfare of all workers
e. any information, instruction, training and supervision needed to make sure that all
workers are safe from injury and risks to their health

 Workers’ responsibilities:
a. to ensure their own personal health and safety, and that of others in the workplace
b. to comply with any reasonable directions (such as safe work procedures, wearing
personal protective equipment) given by management for health and safety

When employees consistently disregard health and safety rules, disciplinary actions will
be taken which may extend up to termination. To address labor concerns of the
employees, the company has formulated standards that are in line with the Labor Code
of the Philippines.

4. Purchase Policy
If an order is received with damage, the Company must receive notice within one (1) week
and the customer should contact the shipping carrier, or if it will be impossible, our customer
service. We accept returns for credits only, less shipping charges. The refund or replacement
of damaged/defective item(s) will be processed within three (3) business days after receiving
the item(s) back. Credits are issued within thirty (30) days after purchase.
5. Shipping and Handling
The Company ships via our partner carrier dependent on pricing and is proud to say that we
ship within three (3) business days after placing the customer’s order. Orders are not
processed on weekends or holidays. If there will be a significant delay in the shipment of the
order, the Company will contact the customer via e-mail or telephone. Kramara Miya is not
responsible for any taxes applied to customer’s order. All fees, such as taxes, imposed
during or after shipping are the responsibilities of the customer.

6. Dress Code
The Company will maintain a business casual working environment. All employees should
use discretion in wearing attire appropriate for production, office, and customer transactions.
They must be presentable at the workplace, especially when interacting with customers.

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 A. Production
All workers in the Production Area, are required to wear any decent white-collared shirt, with
appropriate jeans and shoes. They must also wear hairnet and face mask to prevent them
from becoming sick caused by the chemicals and other substances used in the production
area. They must also wear identification card (ID) during working hours. Above all, they must
observe proper grooming as they work closely and directly with the products of the company.
B. Office
As the employees represent the company to outside parties, they must observe proper
grooming. By which, they are required to wear any casual attire that will still make them
comfortable and presentable. Highly provocative clothes are strictly prohibited.
7. No Smoking Policy
The company is an advocate of clean air. The company maintains a “No Smoking Policy”
within the production and business premises. Employees should smoke only outside or in
any place away from the working premises.
8. Wages and Salaries Policy
 The employees and workers are paid semi-monthly.
 The employees and workers are allowed to work over-time (OT), paid with a
specific rate per hour.
 Advances to workers and employees are extremely not tolerated.
9. Other Rules and Regulations
 Employees are allowed to have a one (1) hour lunch break, and fifteen (15)
minutes morning and afternoon snack break.
Office employees – 12:00 NN to 1:00 PM
Production Workers – 12:00 NN to 1:00 PM
 Every employee should observe proper consumption of the allocated business
materials and resources.
 An employee is not allowed to bring any material or resources outside the
premises, unless permitted by the management.
 Employees are not allowed to use the business profile for personal use without
the permission of the management.
 Employees are allowed to use business’ telephone for personal emergency
purposes ONLY. Use of cellular phones during working hours are not allowed.
Violating this policy will lead the violator to be subject to disciplinary action.

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III. Personnel

Table 3.2 Personnel

TOTAL
PRODUCTION DAILY
QUANTITY MONTHLY
FACILITY SALARY/WAGE
SALARY/WAGE
Overall Operations Operations Manager 1 700.00 16,800.00
Controller 1 700.00 16,800.00
Accounting
Accounting Staff 1 537.00 12,888.00
Human Resource HR Head 1 700.00 16,800.00
Production Supervisor 1 700.00 16,800.00
Production
Production Worker 4 537.00 51,552.00
Sales and Sales Manager 1 700.00 16,800.00
Marketing Sales Clerk 1 537.00 12,888.00
Security and Security Guard 2 500.00 24,000.00
Maintenance Utilities/Maintenance 2 400.00 19,200.00
Total 15 204,528.00

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 CHAPTER IV
MARKET FEASIBILITY

I. Market Description

Kramara Miya is the proposed company name. It is a manufacturing company part

of the industry specializing in health care, especially in foot care. The company’s product,
Kramara Cream, is formulated to maintain the smoothness and softness of the skin (feet)
and to protect them from harmful substances. Kramara Miya’s target market is composed of
the students, employees, and other individuals with the age 12 and above, and especially
those who are fond of using foot creams. The competitors of the company include not only
manufacturing companies that produce foot creams but also those who manufacture foot
care moisturizers and essential oils. These justify the two main objectives of the Company,
which are to moisturize the skin of the feet and to give an aromatherapy to the consumers.

As Kramara Miya enters the market, it aims to have a significant difference when
compared to other companies that also offer the same kind of product, which is foot cream.
Even though it is a company not yet known in the market as it enters such, it still definitely
aims to be one of the leading companies that will manufacture exceptional foot creams that
consumers will love.

II. Demand

Determining the Population

To determine the possible demand of the products that the company is about to sell, the
Kramara Miya make use of the Philippines’ population, excluding those of ages below 12. The
company excluded those of ages below 12 because it is only by the age of 12, where the structure
and function of a child’s skin corresponds to that of an adult. Therefore, the child’s skin during those
ages are less developed when it comes to self-protection mechanism.

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 Table 4.1 Determining the Population

Year Philippine Percentage Change Projected Philippine

Population Population
in the Previous Year
2018 104,921,400 1.60% 106,598,600

2019 106,598,600 1.57% 108,272,199

2020 108,272,199 1.54% 109,939,591

2021 109,939,591 1.51% 111,599,679

2022 111,599,679 1.48% 113,251,354

2023 113,251,354 1.45% 114,893,499

Based on the Information obtained from PSA, the percentage change in the population for
each year is consistently decreasing 0.03% from the previous year’s growth. So, as the 2017's
population is 104,921,400 and the 2018's population is 106,598,600, the percentage growth is
1.60%. The percentage change was computed by deducting the previous year's population with the
current year's population, and the difference is divided by the previous year's population.

Thus, if the percentage change in 2018 is 1.60%, then the percentage change in the
population of the Philippines is 1.57% for 2019, 1.54% for 2020, 1.51% for 2021, 1.48% for 2022,
and 1.45% for 2023. Therefore, producing 108,272,199 in 2019, 109,939,591 in 2020, 111,599,679
in 2021, 113,251,354 in 2022, and 114,893,499 in 2023.

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 Table 4.2 Projected Population of Marikina

Year Projected Philippine Percent belonging Marikina’s Projected

Population to Marikina Population
2019 108,272,199 0.44% 476,398

2020 109,939,591 0.44% 483,735

2021 111,599,679 0.44% 491,039

2022 113,251,354 0.44% 498,306

2023 114,893,499 0.44% 505,532

PSA also provide that for the past years, Marikina’s population has been consistently 0.44%
of the Philippines population. So, to get the Marikina’s Projected Population, The Projected Philippine
Population is multiplied to the percentage belonging to that of Marikina. The company, projected that
Marikina’s population would be 476,398 in 2019, 483,735 in 2020, 491,039 in 2021, 498,306 in 2022,
and 505,532 in 2023.

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 Table 4.3 Projected Population

Year Marikina’s Projected Below 12 years Projected Population

Population old
2019 476,398 130,057 346,341

2020 483,735 132,060 351,675

2021 491,039 134,054 356,985

2022 498,306 136,038 362,268

2023 505,532 138,011 367,521

Accordingly, also based on PSA, the percentage of the Marikina’s population belonging to
ages below 12 is 27.3%. In order to get the Projected Population that will be used in determining the
demand, the Projected Population for Marikina is multiplied to the percentage that pertains to the
ages below 12. Then, product obtained for each year are then subtracted to the Projected Population
of Marikina per year.

With the use of such formula, the company obtained that the population of Marikina
excluding those of ages below 12 is 346,341 in 2019, 351,675 in 2020, 356,985 in 2021, 362,268 in
2022, and 367,521 in 2023.

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Determine the Sample Size

To determine the sample size of the population, the company used the Slovin’s Formula,
which is used to calculate an appropriate sample size from a population. With respect to the
confidence level of the company and the margin of error, which is the tolerable rate of error.

Formula: n = N / (1+Ne^2)

Whereas:

n = no. of samples
N = total population
e = error margin / margin of error

According to the

n= 346,341/ (1+346,341*.05^2)

= 346,341/ 866.8525

= 399.538560481743 or 400

Thus, the sample size is 399.538560481743 or approximately 400 respondents.

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SURVEY RESULTS

Demographic Profile

 Age

Figure 4.1 Age

The data shows that out of the 400 respondents, 172 of them (or 43%) were at the
age ranging from 21 to 30 years old; 31% or 124 of the respondents are ranging from
12 to 20 years old; 17.8% (71 of the respondents) are around 31 up to 40 years old;
and the rest are from the bracket of ages 41 and above.

 Gender

Figure 4.2 Gender

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 The figure shows that 62.7% of the respondents (251 respondents) were all female
and the rest (37.3%) were male.

 Barangay Address

Figure 4.3 Barangay Address

Based on the data, most of the respondents reside in the barangays of

Calumpang (14.5%), Fortune (14%), Parang (12.5%), Concepcion Uno (12.3%), and
Barangka (10%). The others came from Marikina Heights (8.8%), Malanday (6.8%),
Nangka (6%), and San Roque (4.8%). Then the rest came from the other barangays of
Marikina.

 Occupational Status

Figure 4.4 Occupational Status

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 Based from the survey, 42.5% of the respondents were part of the
workforce (employed). They include the self-employed respondents. 164 (41%) of the
respondents were students and the rest (16.5%) were unemployed.

If “Student”:

Monthly Allowance

Figure 4.5 Monthly Allowance - Students

From the data above, 26.8% of the students have a monthly allowance of
PhP 2,000.00 to PhP 2,999.00; 22.6% (37 of the student respondents) are having a
monthly allowance ranging from PhP 4,000.00 to PhP 4,999.00; 17.1% or 28 of the
student respondents are having of about PhP 3,000.00 to 3,999.00 monthly allowance;
15.9% of them are having a monthly allowance of PhP 5,000.00 to PhP 5,999.00; 7.3%
of the students have PhP 1,000.00 to PhP 1,999.00; and the rest have Php 6,000.00
and above.

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If “Employed” (including self-employed):

Monthly Personal Income

Figure 4.6 Monthly Personal Income - Employed

From the data of the employed people who responded our survey, 44.7%
of them are having a monthly income ranging from PhP 20,000.00 to PhP 29,999.00;
32.4% of them have a Php 10,000.00 to PhP 19,999.00 monthly income; and 18.2% or
31 of the respondents are having a PhP 30,000.00 to PhP 39,999.00 monthly income.
And the rest of the employed respondents have a monthly income ranging from PhP
40,000.00 and above.

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Consumer Behavioral Information

Question:
Do you use foot cream or lotion?

Figure 4.7
Based on the survey, most of the respondents (58.3%) use foot cream or lotion,
while 41.8% of them answered that they do not use any foot cream or lotion.

 If “Yes”

How much do you usually pay for it?

Figure 4.8

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 From the respondents who answered that they use foot cream or lotion,
almost half of them (52.1%) buy such product whose price ranges from Php 100.00 to
PhP 149.99. 43.7% of them pays for about PhP 150.00 to Php 199.99 for a foot cream
or lotion. Then the rest of them pays for foot cream or lotion with a price ranging from
PhP 200.00 to PhP 249.99.

Awareness and Acceptance of Kramara Cream Peppermint and Bamboo Scent

Questions:

 Are you willing to purchase Kramara Cream, a moisturizing cream perfect for dry
feet?

Figure 4.9

The figure illustrates the willingness of the respondents to buy the Kramara Miya
foot cream. The result shows that 335 of the respondents with 83.8% of total percentage
said that they are willing to purchase the Kramara Miya foot cream, while 16.2% (65
respondents) have said that they are not willing to purchase.

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IF “Yes”:

 How often are you going to purchase it?

Figure 4.10
According to the survey, respectively, 32.6% (109 respondents) are willing to
purchase it on a regular basis, combining the responses for “Always” and “Often,” while
67.4% (226 respondents) are willing to purchase but in infrequent manner.

 What would attract you to buy it? (You may choose more than one.)

Figure 4.11

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 The data shows that high curiosity brought the most respondents the idea to
purchase the product. Next on the line is its uniqueness, fragrance, and affordability;
and the least factor is the packaging.

 What is/are your possible purpose/s for purchasing it? (You may choose more
than one.)

Figure 4.12

This illustrates that majority of the respondents will be personally using the
product with 93.4% (313 respondents). On the other hand, 16.1% (54 respondents) are
going to purchase it as a gift, and only 12.2% (41 respondents) are going to buy in bulk
for resale.

 Which scent would you purchase?

Figure 4.13

Page | 28
 Based on the data gathered, the majority of the respondents would be most willing
to buy peppermint scent of the cream that is 45.1% (151 respondents), while 28.4% of them
(95 respondents) preferred the Bamboo scent and 26.1% or 89 respondents preffered to
purchase both scents.

 By what quantity/ies would you like to purchase it on a monthly basis?

 If Peppermint scent is selected:

Figure 4.14

According to the data gathered, 18% of the respondents who chose

peppermint scent will buy 2 tubes of Kramara Cream per month, while 4.64% will buy
both the 3 and 5 tubes per month respectively. 1.86% of the respondents chose to buy
4 tubes of Kramara Cream per month. And the remaining 70.86% (total of 107
respondents who preferred the peppermint scent) have agreed that they will purchase
at least 1 tube per month.

Page | 29
  If Bamboo scent is selected:

Figure 4.15

Based on the data obtained, a rate of 13.68% who preferred the Bamboo
scent will buy 3 tubes of Kramara Cream per month, 11.58% will buy 2 tubes, and
10.53% will buy 4 to 5 tubes. While the remaining 64.21% (total of 61
respondents) have agreed that they will purchase at least 1 tube per month.

 If “Both” scents is selected:

Figure 4.16

The figure show that from the respondents who preferred to buy both the peppermint and
Bamboo scent, 16.85% of them (15 respondents) will buy 3 tubes of Kramara Cream per month,
while 12.36% and 11.24% of them will buy 4 tubes and 5 tubes, respectively. And a rate of 50.56%
preferred to buy only 1 tube of Kramara Cream.

Page | 30
 How much are you willing to pay for it?

Figure 4.17

Based on the data gathered, the respondents, specifically, 306 respondents say
so, will be most willing to buy the product if the cost ranges from ₱ 150.00 to ₱ 199.99,
followed by ₱ 200.00 to ₱ 249.99, according to 29 respondents (8%).

 Where would you like to get information of it? (You may check more than one.)

Figure 4.18

Page | 31
 The data shows that most respondents preferred to acquire information from
online advertisements and brochure, which received results of 73.4% (246 respondents)
and 46.3% (155 respondents) respectively. Next is the posters/tarpaulins which
acquired 13.4% or a total of 45 respondents.

 Where would you like to buy it? (You may choose more than one.)

Figure 4.19

The graph shows that the respondents preferred to purchase the product in on line
stores (52.80%) total of 177 respondents, drug stores (35.5%) total of 119 respondents,
chain stores (25.1%) total of 84 respondents, and boutiques (24.5%) total of 82 respondents.
Only 20.6% (69 respondents) would buy the product in malls and 15.8% (53 respondents)
in bazaars.

Page | 32
IF “NO”:

 What is/are the reason/s for you not to purchase it? (You may choose more than
one.)

Figure 4.20

The data shows that most respondents specifically 41.5% or a total of 27

respondents are contended with the product they are using and 55.3% or a total of 36
respondents are not really fond of using moisturizing cream. The remaining 6.2% (4
respondents) says that they can’t afford the price.

Page | 33
Determine the Potential Customers

Table 4.4 Potential Customers

Year Total Target Percentage of those Potential Customers

Population Willing to Purchase
2019 346,341 84 % 290,927

2020 351,675 84 % 295,407

2021 356,985 84 % 299,867

2022 362,268 84 % 304,305

2023 367,521 84 % 308,718

The respondents, being the sample, is expected to represent the entire population. Thus, as
obtained in the survey, 84% of the respondents are willing to purchase in the Kramara Miya. It is
multiplied to the forecasted total population in order to get the potential customers for each year.

Page | 34
(insert File 3: first page)

Page | 35
 The table shows that of those who are willing to purchase the products that Kramara Miya
is offering, 44.6 % of them would like to buy the cream with peppermint scent alone, and 26.5 % of
them are willing to buy both products in different amounts of tubes.

Of the 44.6 % who likes the peppermint scent, 70.7 % (31.5 % of the potential customers)
of them are willing to buy a piece of tube per month, while 18 % (8 % of the potential customers) are
willing to buy 2, 4.7 % (2.1 % of the potential customers) are willing to buy 3, 2% (0.39% of the
potential customers) are willing to buy 4 and 4.7% (2.1% of the potential customers) are willing to
buy 5 tubes.

And of the 26.5% who likes to purchase that of both scents, 50.6% (13.4% of the potential
customers) of them are willing to buy a piece of tube per month, while 9% (2.4% of the potential
customers) are willing to buy 2, 16.9% (4.5% of the potential customers) are willing to buy 3, 11.2%
(3% of the potential customers) are willing to buy 4 tubes and 12.4% (3.3% of the potential
customers) are willing to buy 5.

Page | 36
(insert File 3: second page)

Page | 37
 The table shows that of those who are willing to purchase the products that Kramara Miya
is offering, 28.9% of them would like to buy the cream with bamboo scent alone, and 26.5% of them
are willing to buy both products in different amounts of tubes.

Of the 28.9% who likes the bamboo scent, 62.9% (18.2% of the potential customers) of them
are willing to buy a piece of tube per month, while 12.4% (3.6% of the potential customers) are willing
to buy 2, 14.4% (4.2% of the potential customers) are willing to buy 3, 6.2% (1.8% of the potential
customers) are willing to buy 4, and 4.1% (1.2% of the potential customers) are willing to buy 5 tubes.

The company decided to include the number of tubes computed (from the data that shows
the willingness of the potential customers to purchase both scents that the company offers) in the
computation of the demand of both products.

Determine the Annual Projected Demand

Table 4.7 Determine the Annual Projected Demand

Year
Annual Annual Annual
Projected Number of Projected Number of Projected Demand
Tubes Tubes
(Peppermint Scent) (Bamboo Scent)
2019 4457417 3865173 8,322,590

2020 4526057 3924693 8,450,750

2021 4594391 3983947 8,578,338

2022 4662387 4042909 8,705,297

2023 4730001 4101539 8,831,540

Page | 38
 III. Supply Analysis
In order to obtain the supply in the market, the company make use of the two questions in
the survey questionnaire, specifically “Question 1: Do you use foot cream or lotion?” and “Question
2: Are you willing to purchase Kramara Cream, a moisturizing foot cream?” and the result in the
survey will be shown below:

Table 4.8a Supply Analysis

Do you use foot cream Are you willing to Total Respondents Percentage
or lotion? purchase Kramara who responded the
Cream, a moisturizing corresponding
foot cream? answers

Yes Yes 139 34.8 %

Yes No 27 6.8 %
No Yes 197 49.3 %
No No 37 9.3 %

The company considered those who answered “Yes–Yes” and “No–Yes” as part of the gap.
Those who answered “Yes–Yes”, although they are already being supplied by the competitors, they
are still willing and interested to buy Kramara Cream, because they are unsatisfied with the current
product they are using, so they can still be a potential consumer of Kramara Cream. While, those
who answered “No–Yes”, although they are not fond of using hand and foot cream, they are willing
and interested to buy Kramara Cream, so again they are potential consumers.

The company did not consider those who answered “Yes-No” and “No-No”. Because those
who answered “Yes-No” are already supplied and contented with the product they are using. And
those who answered “No-No” are not interested and fond of using hand and foot cream.

Page | 39
 Table 4.8b Supply Analysis

Do you use foot cream Are you willing to Total Respondents Percentage
or lotion? purchase Kramara who responded the
Cream, a moisturizing corresponding
foot cream? answers

Yes Yes 139 38.3 %

Yes No 27 7.4 %
No Yes 197 54.3 %

Table 4.9 Projected Demand and Supply

Projected Demand Percentage of Projected Supply

Supplied by
Competitors
2019 8,322,590 7.4 % 615,872

2020 8,450,750 7.4 % 625,356

2021 8,578,338 7.4 % 634,797

2022 8,705,297 7.4 % 644,192

2023 8,831,540 7.4 % 653,534

Page | 40
Supply and Demand Gap

Table 4.10 Supply and Demand Gap

Year Demand Supply Gap

2019 8,322,590 615,872 7,706,719

2020 8,450,750 625,356 7,825,395

2021 8,578,338 634,797 7,943,541

2022 8,705,297 644,192 8,061,105

2023 8,831,540 653,534 8,178,006

Kramara Miya’s Market Share

The Kramara Miya decided to get the 1% share in the Supply and Demand Gap. The
company chose to produce only a number of 77,068 tubes for the year 2019. For the reason that
the company wants to be conservati and also considering the resources that it have, including the
capital and the capacity of the workers.
Market share of the company:
= 7,706,719 x 0.01
= 77,067.19 or 77,068 tubes for the year 2019

Page | 41
IV. Competitors

Table 4.11 Competitors

NAME/Product LOGO DESCRIPTION
Price
One of The Body Shop’s
The Body Shop
products is the
Price: Php 760.00 Peppermint Intensive
Cooling Foot Rescue.
The cream is infused
with English peppermint
essential oil, that gives
off a minty fresh foot
cream comes to the
rescue of tired, and dry
feet. The cream is
enriched with community
trade peppermint
essence oil from Norfolk,
England. Today, the
company is owned by
L’Oreal and has a strong
presence in over sixty
(60) countries. It has
different branches all
over the Philippines such
as in San Juan City,
Quezon City,
Mandaluyong City,
Makati City, Cainta, and
Manila.

Page | 42
 Nature Republic is one
Nature Republic
of the leading and
Price: Php 261.20 fastest-growing global
cosmetics brand. Using
natural ingredients
originating from different
countries, it is able to
produce distinctive,
quality products that are
focused on the nature.
Nature Republic sells a
wide variety of products
which includes foot
creams. One of their
products is Foot &
Nature Coconut
Moisture Foot Cream, it
is a moisturizing foot
cream formulated with
shea butter and coconut
oil to give rough foot
moisture and nutrition.
Nature Republic has
branches and outlets in
the Philippines, in places
like Quezon City, Cainta,
Mandaluyong City, and
Muntinlupa City. Also, it
has outlets in malls like
TriNoma, SM City North

Page | 43
 Edsa, and Sta. Lucia
East Grand Mall.

Human Nature
Human Nature
Price: Php 199.75 continues to strive to
uplift the lives of the
impoverished and
underserved through
successful and
sustainable social
enterprises and quality
natural products for
everyone.
Human Nature sells a
wide variety of products
including foot creams.
One of their products is
Hand & Foot Salve –
Eucalyptus, this indulges
your hands and feet in
deep, intensive
moisturization for softer
skin that looks and feels
more youthful. It is richly
infused with 12 nutrients
and antioxidants, our
salve soothes,
rejuvenates and
pampers dry, cracked
and stressed skin and

Page | 44
 helps promote healthier-
looking skin.

Avon Avon products are

Price: Php 300.00 available in over 100

countries, and the product
line includes color
cosmetics, skincare,
fragrance, fashion and
home products, featuring
such well-recognized
brand names as Avon
Color, ANEW, and Skin
So Soft.
Avon sells a wide variety
of products which
includes foot creams.
One of its foot cream
products is Avon Foot
Works Deep
Moisturizing Cream, it is
a rich cream formulated
with cocoa butter
penetrates deep into the
top layers of your skin
with softening moisture-
magnet technology to
help heal rough, dry skin.
Avon has its own
branches in places like
España, Quezon City,

Page | 45
 Malabon City, Baclaran
City, Makati City, Taytay
City, Caloocan City, and
Manila.

Strawberrynet

Strawberrynet™ offers a wide variety of

brands and their
products including foot
creams. One of the
products is the Basis
Sensitiv Foot Cream
from Lavera, it is an
organic-based
nurturing foot cream
that contains organic
macadamia, organic
beeswax & organic
shea butter. It has a
rich, quick-dissolving
texture that helps to
heal, hydrate and
condition dry, cracked
feet. It also offers
deodorizing action to
banish bad smell and
restores supple, sleek
& comfortable feet

Page | 46
V. PROPOSED MARKETING PROGRAM

Product

Kramara Cream is a moisturizing cream with avocado oil as its carrier oil founding the
cream and peppermint oil or bamboo oil as its essential oil. It gives the satisfying feeling of
moisturizing effect through the avocado oil and the cooling effect and aromatherapy the bamboo
and the peppermint oil give. This product can be for everyone who suffers from dry skin and who
wants to experience a relaxing feeling.

Human feet’s perform an amazing amount of work and this is where Kramara Cream
enters for it can help them to be maintained smoother and softer by incorporating Kramara
Cream into the consumers’ daily self-care routine.

Price

As a result of conducting the survey, out of the 400 respondents, 91.3% (306
respondents) voted “PHP 150.00- PHP 199.99” as the price they are willing to pay; 8% (29
respondents) for “PHP 200.00 - PHP 249.99.

Based on the results, the majority of the votes chose the price of PHP 150.00- PHP
199.99. Thus, the researchers decided to go with the price of PHP 169.99.

Place

The researchers looked for production facilities within and around Marikina City, known
as the Shoe Capital of the Philippines, considering Marikina City as a highly industrial and
residential city in Metro Manila. Since it is a good location to build such an establishment, the
researchers decided to locate their production facility, as well as the store of Kramara Miya in
Corner J. Molina, Marikina City. They found it less expensive to do so and still convenient to
people, particularly the consumers.

Page | 47
 Promotion

As starters, the researchers have decided to use brochures and the social media as two
ways of reaching the consumers and informing the latter about the Kramara Cream.

Brochure is regarded by the researchers as an effective tool in advertising Kramara

Cream because it is an informative paper document containing details about the product that
consumers need to know.

Another is the use of social media as it is one of the easiest ways to connect with people
even though they are not physically within the reach. With this, the researchers will advertise
Kramara Cream through social media platforms, such as Facebook, Twitter, Instagram, Tumblr,
and online stores.

In a nutshell, both instruments previously stated (brochures and social media platforms)
are regarded by the researchers as the keys in advertising Kramara Cream to a wide range of
consumers while just incurring less expenses.

PESTLE Analysis

Political Factors

 Tax Policy
Government regulations may increase taxes for some companies and lower it for
others so it would have an effect on the costs that will be incurred by the business. Since
the cost has a direct relationship with the price, it would have an impact on pricing strategy
of Kramara Miya’s business.

 Strict Guidelines
Product safety is more openly discussed with products designed for skin-to-skin
contact. Product must be Food and Drugs Authority (FDA)-approved to ensure the safety of
the consumers who will buy our product.

Page | 48
Economic Factors

 Inflation Rate
Due to lower inflation, it would have an effect of a decrease in the cost of raw
materials. Also, from that, the researchers can see the anticipated demand because of the
purchasing power of the consumers.

 Interest Rate
As the researchers assessed the interest rates for consecutive years, they have
determined that such do not decrease but increase. Due to this, people will not be able to
borrow more money. The result is that consumers have less money to spend causing the
economy to slow down.

 Employment
When people have regular work to earn money, they also have the courage to spend
for their necessities and wants. As the researchers have observed and nonetheless is
obvious nowadays, personal hygiene is one of the necessities of every individual.
Considering this, employment directly affects Kramara PersiaMint for it targets the personal
hygiene of the consumers.

Social Factors

 Population Growth Rate

Population is continuously growing. Due to this, more people will anticipate buying
the product.

 Emphasis on Safety
Safety is one of the factors affecting individuals’ decision to buy a specific product
so the researchers need to ensure that Kramara PersiaMint is safe to be used even when
applied to sensitive skin.

Page | 49
  Colonial Mentality
People nowadays have been buying and loving foreign products, and it really is a
great factor for the success of Kramara PersiaMint for people would not easily accept a
product which does not yet have a name in the market, so Kramara Miya wants to prove that
even though Kramara PersiaMint is locally made, the former can still compete to the
competitors in the same standards.

 Sex Distribution
As observed, most individuals who use hand cream are women because they are
conscious when it comes to the appearance of their hands.

 Brand Loyalty
Nowadays, there are lots of brands, known or not known, in the market, so one of
the factors that would affect Kramara Miya’s business is the brand loyalty. Some people stop
looking to find another product when they have already found that one product they really
like and need, and that would be their holy grail.

Technological Factors

 Easy to Access
Technologies are very helpful when it comes to selling products because of the
Internet. People can sell their products online, where people are always active even though
not physically. Also, social media platforms are a great way in advertising products known
or not yet known in the market as such cater a wide range of Internet users.

Page | 50
Legal Factors

 Consumer Law
It is designed to ensure the rights of consumers, as well as the fair trade,
competition, and accurate information in the market place. Since Kramara PersiaMint is for
skin care, Kramara Miya must indicate all the necessary information needed by the
consumers. It is important to give them all the information so that they will know the rules
and regulations they have to comply with, such the protection of the consumers.

Environmental Factors

 Weather
The weather here in the Philippines is continuously changing because of climate
change. Most of the time, Kramara PersiaMint will be most used when the weather is cold
so that the consumers can put hand cream to moisturize their hands against the cold
weather.

VI. PROJECTED SALES

Table 4.12 Projected Sales

YEAR PROJECTED ANNUAL SELLING PRICE PROJECTED SALES

DEMAND

2019 77,068 Php 169.99 Php 13,100,789

2020 78254 Php 169.99 Php 13,302,397

2021 79436 Php 169.99 Php 13,503,326

2022 80612 Php 169.99 Php 13,703,234

2023 81781 Php 169.99 Php 13,901,952

Page | 51
 CHAPTER V
PRODUCTION

I. Product Specification
With the purpose of giving the best treatment to every individual's restless feet,
Kramara Miya has taken the steps in creating the Kramara Cream formula, maximizing the
use of avocado oil, peppermint oil, and bamboo oil, giving not just one satiation to every
consumer, but two oils many may not have expected to go along together.
The Kramara Miya has specifically identified what is uncommon in the market, thus
coming up with the avocado oil mixed with Shea Butter and Beeswax forming the cream of
Kramara Cream, and with a magical touch of peppermint oil and bamboo oil into the mixture
depending on the choice of the user.
The avocado oil is one of those oils, which oil is extracted from the fruit/flesh itself
and not from the fruit's pits. It has also been proven to be effective in moisturizing the skin.
The peppermint oil, on the other hand, makes one feel at ease at relaxed as it has the cooling
effect everyone wants. Lastly, the bamboo oil gives the cool scent making every individual
feel as if they been refreshed.

II. Production Process

Ingredients Needed:

 Avocado Oil - 60 mL ready-made oil, equivalent to 280 tubes.

 Peppermint Oil – 360 mL ready-made, equivalent to 280 tubes.

 Fresh Bamboo Oil –360 mL ready-made, equivalent to 280 tubes.

 Shea Butter – 10 kg, equivalent to 280 tubes.

 Beeswax – 1,750 grams, equivalent to 280 tubes.

 Water – 5 tablespoons per tube.

Page | 52
Packaging Materials:

 280 pcs. of 50 ml Portable Tube Squeeze Containers

 Stickers (Labels: Product Name/Logo, Contents, etc.

Utensils to be Used in Making the Product:

 Measuring Cups/Spoons

 Stainless Spoon

 Stainless Bowl

 Sauce Pan

Procedures:

Cream using Peppermint Oil

1. Place raw shea butter, beeswax, and avocado oil in a stainless bowl. Fill the sauce pan
with 3 to 4 inches (8 to 10 cm) of water, and steam the stainless bowl with the mixture
in the pan, which should take approximately take 5 to 10 minutes.
2. Stir the shea butter, beeswax, and avocado oil as it is melting to help it heat evenly.
3. Once the mixture has melted, remove it from the heat and allow it to cool down.
4. Once the mixture has cool down, add the peppermint oil (essential oil) and stir it to
combine with the mixture.
5. Once the mixture and the peppermint oil has combined, leave it for a while until it forms
into a cream.
6. Once it is formed into a cream, add lukewarm water and stir it again until the mixture
and the water have combined.

Page | 53
Cream using Fresh Bamboo Oil

1. Place raw shea butter, beeswax and avocado oil in stainless bowl. Fill the sauce pan
with 3 to 4 inches (8 to 10 cm) of water, and steam the stainless bowl with the mixture
in the pan, which should take approximately 5 to 10 minutes.
2. Stir the shea butter, beeswax and avocado oil as it is melting to help it heat evenly.
3. Once the mixture has melted, remove it from the heat and allow it to cool down.
4. Once the mixture has cool down, add the fresh bamboo oil (essential oil) and stir it to
combine with the mixture.
5. Once the mixture and the fresh bamboo oil has combined, leave it for a while until it
forms into a cream.
6. Once it is formed into a cream, add lukewarm water and stir it again until the mixture
and the water have combined.

Packaging

1. Transfer the finished mixture for peppermint and bamboo into the 50 mL portable tube
squeeze container.
2. Label the tubes with packaging stickers.

Page | 54
III. Plant Size and Production Schedule

Plant Size

Kramara Miya production facility’s has a lot size of 56 square meters which is
located in Corner J. Molina, Marikina City.

Page | 55
Production Schedule

Time Number of
Activities Location Time used
Schedule workers
Preparing the
8:00 am – 8:15 am materials and Working Area 5 workers 15 minutes
ingredients
Measuring Bees Wax
8:15 am – 8:45 am and Shea Butter and Working Area 5 workers 30 minutes
drops of Avocado oil
Melting and mixing of
8:45 am – 9:15 am Bees Wax, Shea Machine Area 5 workers 30 minutes
Butter and Avocado oil
Cooling of mixtures
Washing of used
9:15 am – 9:45 am materials Working Area 2 workers
30 minutes
Checking and Packaging Area 3 workers
counting of tubes
Mixing the Peppermint
9:45 am – 10:00 am or Fresh Bamboo oil Machine Area 5 workers 15 minutes
with the melted cream
Cooling of the melted
10:00 am – 10:15 am cream 15 minutes
BREAKTIME BREAKTIME BREAKTIME
Mixing the melted
10:15 am – 10:30 am cream with water Machine Area 5 workers 15 minutes

Cutting of stickers
10:30 am – 11:00 pm Packaging Area 5 workers 30 minutes

Attaching of stickers to
11:00 am – 12:00 pm Packaging Area 5 workers 1 hour
tube containers
12:00 pm – 1:00 pm LUNCH BREAK LUNCH BREAK 1 hour
Continuation of
1:00 pm – 2:00 pm packaging of tubes Packaging Area 5 workers 1 hour
(Attaching stickers)
Filling of tube contains
2:00 pm – 3:00 pm Packaging Area 5 workers 1 hour
with Kramara Cream
3:00 pm – 3:15 pm BREAK TIME BREAK TIME 15 minutes
Continuation of filling
3:15 pm – 4:15 pm of tubes with Kramara Packaging Area 5 workers 1 hour
Cream
Storage of Kramara
4:15 pm – 4:30 pm Storage Area 5 workers 15 minutes
Cream
Cleaning the area
3 workers 30 minutes
4:30 pm – 5:00 pm Washing used Working Area
2 workers
Equipments
Daily Production = 280 bottles
Figure 5.1

Page | 56
IV. Machinery and Equipment

 Production Equipment

ITEM QUANTITY COST TOTAL COST IMAGE

Gas Stove 2 PHP 1,099.00 PHP 2,198.00

Table 5.2

 Production Supplies

ITEM QUANTITY COST TOTAL COST IMAGE

Pastry Bag 72 PHP 85.00 PHP 6,120.00

Box 24 PHP 7.00 PHP 168.00

Table 5.3

Page | 57
  Production Tools

ITEM COST QTY TOTAL COST IMAGE

Sauce Pan PHP 300.75 6 PHP 1,804.50

Stainless Bowl PHP 135.00 6 PHP 810.00

Measuring Cups PHP 89.00 3 PHP 267.00

Stainless Steel
PHP 139.00 6 PHP 834.00
Ladle

Table 5.4

Page | 58
V. Plant Location

Figure 5.1

Considering Marikina City as a highly industrial and residential city in Metro Manila,
the researchers looked for production facilities within and around the said city. Since it is a
good location to build such an establishment and facilities, the researchers decided to locate
Kramara Miya’s production facility as well as its store and main office in Corner J. Molina,
Marikina City. Moreover, they found it less expensive to do so.

Page | 59
VI. Plant Layout
First Floor Layout

4.57 m 4.60 m

5.20 m

12.17 m
3.0 m

2.60 m

.0 m

4.60 m

Figure 5.2

Page | 60
 The entrance will lead to the physical store of the company. On the right side of the
store, there is a staircase that will lead to second floor, which is the area for the administrative
and accounting offices. Facing the stairs, a hallway leading to the production area can be
seen. Before going to the production area, a small room will be passed through. The
production area has six (6) areas: the center island, the machines and equipment area, the
packaging area, the storage shelves, and the comfort room.

Production Area

Figure 5.3a

Figure 5.3b

Page | 61
 This area is where the production activity happens. It starts at the center island,
which is the working table. The working table area is where the cleaning, draining and
peeling of the raw materials are done. The raw materials processed in the working table
island will be transferred to the left part, where the machines and equipment are installed,
for further processing. Then the processed product will be put on the right side of the room,
which is the packaging area, where the processed products are to be transferred on
container tubes and putting of labels and logos are done. Quality control is also done at the
packaging area. On the furthermost area, shelves for the raw materials are located. This is
where the raw materials obtained from the suppliers are stored. Then on the opposite side
are the shelves for the finished goods. The finished goods storage is where the finished
products from the packaging area are brought for store-keeping to be delivered to the
customers and to the store.

VII. Building and Facilities

First Floor Layout

The Store

Figure 5.4a

Page | 62
 Figure 5.4b

Figure 5.4c

At the entrance of the building, the store can already be seen. This is the area where
the customers are received. At the right side of the store, a staircase, leading to the second
floor where the administrative and accounting departments are located, can be seen. Facing
the stairs, a way can be seen which will lead to the production area.

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Second Floor Layout

4.60 m

.0 m
4.0 m

5.20 m
9.50 m
2.60 m
2.1 m

.0 m

4.60 m

Figure 5.5

Upon entering the store, facing the right side, the staircase leading to the second
floor where the administrative and accounting offices, pantry area, and the utility area are
located, can be seen.

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Pantry Area

Figure 5.6a
Administrative Office

Figure 5.6b
Accounting Office

Figure 5.6c
Page | 65
Utility Area

Figure 5.6d
Toilet Area

Figure 5.6e

Conference Room

Figure 5.6f
Page | 66
VIII. Raw Materials

Shea Butter

Shea butter is a seed fat that comes from the shea tree. The shea butter comes
from two oily kernels within the shea tree seed. After the kernel is removed from the seed, it
is ground into a powder and boiled in water. The butter then rises to the top of the water and
becomes solid. It is off-white or ivory-colored and has a creamy consistency that is easy to
spread on skin. The intensely nourishing properties of shea butter lie in its rich texture and
high fat content, making it an ideal cosmetic ingredient for softening skin. Using shea butter
can condition, tone, and soothe the skin.

The company is concerned to the safety of the future consumers of the Kramara
Cream, so one of the captivating characteristics of shea butter is its incredibly low risk
as topical ingredient. Allergic reactions to shea butter are rare. Even people who are allergic
to tree nuts, which is the family that shea nuts belong to, have a low risk of reaction to shea
butter. Researchers believe that this is because shea nuts contain little of the tree nut
proteins that trigger allergies. Thus, it is nearly appropriate for any types of skin.

It also has a moisturizing effect, where in the oils it contains are rapidly absorbed
onto the skin. They act as a “refatting” agent, restoring lipids and rapidly creating moisture.
This restores the barrier between the skin and the outside environment, holding moisture in
and reducing risk of dryness, on the other hand eliminating the greasy or oily feeling. Shea
butter also has anti-inflammatory properties (plant esters) that trigger inflammatory cells to
slow down its production. Thus, when applied to skin, it helps minimize cause irritation that
is caused by environmental factors.

Aside from those mentioned, shea butter has significant levels of vitamins A and E,
which means it promotes strong antioxidant activity. Antioxidants are important anti-aging
agents. They protect skin cells from free radicals that can lead to premature aging and dull-
looking skin. Combining its antioxidant and moisturizing properties, will help the skin
generate healthy new cells. With the right moisture balance on the surface of the skin, fewer
dead skin cells in the way of fresh cell regeneration in the epidermis.

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 In addition, shea butter contains oils that are suggested by researchers to be
beneficial for superficial (first-degree) skin burns, such as sunburn. Shea’s anti-inflammatory
components may reduce redness and swelling. Its fatty acid components may also soothe
the skin by retaining moisture during the healing process.

The company has chosen shea butter as the main ingredient (base) of the product
for it has a lot of benefits aligned with the main purpose of a foot cream--smoothing, soothing,
and conditioning the skin while eliminating the greasy feeling most foot creams or lotions
possess.

Avocado Oil

Avocado oil is extracted from the avocado fruit, which is scientifically known as
Persea Americana. Avocados are usually pear-shaped to round and they come in many
different shades of green, ranging from pale green to almost black when fully riped.

Not being so muchly recognized, avocado is loaded with omega-3 fatty acids
and vitamins A, D, and E, potassium, and lecithin, which can contribute to skin care. It can
help nourish and moisturize the skin. It also contains anti-oxidants which may help heal the
dry, irritated, and flaky skin. It also accelerates the wound healing of where it is applied at,
due to the essential fatty acids and oleic acid it contains, thus, promoting collagen synthesis,
which is the process of creating new connective tissues, and helping in the reduction of the
inflammation during the healing process. The healthful fats it contains help the skin to retain
its elasticity (anti-aging). Furthermore, using avocado oil may also heal dry and brittle nails
because the oil keeps the nails and surrounding skin soft which may help reduce breakage.

The company came up with the idea of mixing avocado oil as a main ingredient of
the foot cream, for the reason that the benefit of the avocado supports and is very similar of
what the shea butter could also offer, and also that it is strongly congruent to that of the
essence of a foot cream.

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Beeswax

Beeswax is a natural wax made from the honeycomb of the honeybee and other bees.
Worker bees produce the wax, and the hive workers collect it to form the cells which store
the honey produced by the hive. The mixing of pollen oils into honeycomb wax turns the white
wax into a yellow or brown color. Beeswax is generally available as yellow, white, or bleached.
Yellow beeswax comes directly from the honeycomb, while white and bleached beeswax comes
from yellow beeswax.

Beeswax has many healing properties. The anti-inflammatory properties of beeswax

encourage the healing of wounds. It is also protective, helping to form a barrier between the skin
and the environment without clogging pores. Further, beeswax is high in vitamin A, which has
been found to support cell reconstruction and health, resulting to reduced aging of the skin.

The protective nature of beeswax helps to hold in moisture and reduce dryness of skin.
It is also a humectant, which means that it attracts water. This helps keep the skin hydrated and
soft. Also, beeswax has antibacterial properties. It helps keep the skin clean and reduces the
risk of contamination.

The company includes beeswax as an ingredient for Kramara Cream for it gives a great
natural touch, not to mention it also carries an amazing and sweet natural fragrance, which
will keep the product smell great. Also, as far as the company is concerned, using beeswax is
great for the environment.

Peppermint Oil

Peppermint is a member of the mint family, a large group of plants that have been
used for thousands of years for their beneficial properties. The peppermint plant, Mentha
piperita, grows to about 3 feet tall and has dark green leaves. Mint plants have been used
before mostly for their medicinal properties. The leaves and stems of peppermint contain
menthol, a volatile oil. Peppermint oil is widely used in commercial products like massage
oils.

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 Peppermint oil has a slight numbing effect on the skin, which may be why it is helpful
for reducing skin irritations, whether caused by poison ivy and other toxic plants or insect
bites. However, peppermint oil is generally not used directly on the skin, because like all
essential oils, it is highly concentrated and thus should always be diluted through carrier oil
before use.

The company is expecting that by including the peppermint oil as an ingredient, the
consumers will feel its cooling effect and relaxing scent, which most foot creams do not
possess.

Bamboo Oil

Bamboo oil has long been considered to have miraculous properties. Many attests
to the spiritual healing properties of bamboo to date. With its negative energy clearing
properties, bamboo is used to purify the heart and let go of past burdens and regrets. It
bolsters self-worth and self-esteem, as the energy channels are cleared and the mood is
brightened.

Its aroma is sweet and woody and may remind users of a luscious, wet forest. It is
even used in cosmetic products. It is also used in massage to relax the body and unknot the
stresses of the mind.

Many are captivated by the fresh scent of bamboo oil, so the company has decided
to include it as one of the essential oils to be used in Kramara Cream, more so due to the
fact that herbal extracts and essential oils prepared from bamboo are used in the
aromatherapy world.

Page | 70
IX. Utilities

X. Waste Disposal

Certain types of wastes such as chemicals can be hazardous and can pollute the
environment. Improper waste disposal can also cause land and air pollution, which can result
to global warming and can cause serious medical conditions in humans and animals. Thus,
proper waste disposal is crucial in every business especially those that manufacture their
own product, especially considering those that involve their production the processing of
hazardous chemicals.
Kramara Miya practices proper waste disposal to protect the environment and for
the health and safety of the human being. It is also about being more efficient with raw
materials and making the most of each stage of the production process and the proper
segregation of garbage, whether one is a biodegradable or non-biodegradable.
In Marikina City, where their production facility is located, Kramara Miya ensures
that every garbage are segregated in accordance to their criteria; in this way, all the scraps
that can be used or recycled will be saved and used for future production, and those that
cannot be anymore will be disposed properly. The garbage collection schedule in Marikina
happens between 5:00 am and 1:00 pm, every Monday and Thursday for the collection of
biodegradable garbage and at the same time every Wednesday for the collection of non-
biodegradable garbage.
As one of the manufacturing companies that uses oil as its main ingredient, Kramara
Miya properly disposes oils by handling them to the City Government Management Office
(CEMO), so the latter may turn the used oils, Styrofoam, and plastic bags into decorative
bricks that are used in pavements and benches, to prevent them from contaminating the

Page | 71
water system, especially the Marikina River. The collection of the used oils, Styrofoam, and
plastic bags is done every third Sunday of every month. Also, aside from those, CEMO
collects food wastes, turning them into fertilizer and saving on city garbage expenses.
Marikina is not only known for being the shoe capital, but also for its cleanliness and
orderliness in their environment. The city is clean, with a number of street sweepers, mostly
volunteers, making sure that streets are spick and span all the time. Its waste management
is one, if not the best among local government units, which is why Kramara Miya has not
encountered any problem and incurred additional expenses relating to waste management,
as the company follows the programs and projects of Marikina City.

Page | 72
XI. Production Cost

 Office Machines

ITEM QUANTITY COST TOTAL COST IMAGE

Photocopying
1 PHP 7,938.50 PHP 7,938.50
Machine

Photocopying
1 PHP 11,677.00 PHP 11,677.00
Machine

Page | 73
  Cleaning Supplies

ITEM QUANTITY COST TOTAL COST IMAGE

Broom &
2 PHP 150.00 PHP 300.00
Dustpan

Floor Mop 1 PHP 300.00 PHP 300.00

Trash
20 PHP 3.00 PHP 60.00
Plastic

Trash Bin 2 PHP 200.00 PHP 400.00

Rag 3 PHP 25.00 PHP 75.00

Dishwashin
1 PHP 95.00 PHP 95.00
g Liquid

1
Sponge PHP 90.00 PHP 90.00

TOTAL PHP 1,320.00

Page | 74
  Office Supplies

ITEM UNIT COST QTY TOTAL COST IMAGE

Ream
Bond Paper PHP 152.00 3 PHP 456.00
(Short)

Ream
PHP 180.00 3 PHP 540.00
(Long)

Pieces
Folders PHP 7.00 50 PHP 350.00
(Long)

Pencil Box PHP 84.00 1 PHP 84.00

Ballpen Pieces PHP 5.00 20 PHP 100.00

Marker Pieces PHP 14.75 4 PHP 159.00

Page | 75
Record
Pieces PHP 45.00 2 PHP 90.00
Book

Scissor Pieces PHP 29.75 2 PHP 59.50

Tape
Dispenser Set PHP 100.00 1 PHP 100.00
(with tape)

Stapler Piece PHP 99.00 1 PHP 99.00

Staple Wire Box PHP 64.00 1 PHP 64.00

Calculator Piece PHP 144.00 4 PHP 576.00

Packaging
Pieces PHP 26.00 3 PHP 78.00
Tape

TOTAL PHP 2,655.50

Page | 76
  Store Supplies
ITEM UNIT COST QTY TOTAL COST IMAGE

Pencil Pieces PHP 7.00 2 PHP 14.00

Ballpen Pieces PHP 5.00 2 PHP 10.00

Marker Pieces PHP 14.75 2 PHP 29.50

Record
Pieces PHP 45.00 1 PHP 45.00
Book

Scissor Pieces PHP 29.75 1 PHP 29.75

Tape
Dispenser Set PHP 100.00 1 PHP 100.00
(with tape)

Stapler Piece PHP 99.00 1 PHP 99.00

Page | 77
Staple Wire Box PHP 64.00 1 PHP 64.00

Calculator Piece PHP 144.00 1 PHP 144.00

Packaging
Pieces PHP 26.00 10 PHP 260.00
Tape

TOTAL PHP 795.25

Page | 78
  Furniture and Fixtures (Office)
ITEM UNIT COST QUANTITY TOTAL COST IMAGE

Wall Clock Pieces PHP 100.00 2 PHP 200.00

Office Chair Pieces PHP 499.00 4 PHP 1,996.00

Chair Pieces PHP 250.00 1 PHP 250.00

Pieces
Monoblock
PHP 1,200.00 1 PHP 1,200.00
Chair

Office Table Pieces PHP 1,400.00 4 PHP 5,600.00

Ceiling Fan Pieces PHP 1,250.00 1 PHP 1,250.00

Wall Fan Pieces PHP 569.00 2 PHP 1,138.00

TOTAL PHP 11,884.00

Page | 79
  Furniture and Fixtures (Store)
ITEM UNIT COST QUANTITY TOTAL COST IMAGE

Wall Clock Pieces PHP 100.00 1 PHP 100.00

Chair Pieces PHP 250.00 1 PHP 250.00

Pieces
Monoblock
PHP 1,200.00 1 PHP 1,200.00
Chair

Wall Fan Pieces PHP 569.00 2 PHP 1,138.00

TOTAL PHP 2,688.00

Page | 80
 CHAPTER VI
FINANCIAL FEASIBILITY

Page | 81
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