ATENEO DE DAVAO UNIVERSITY

SENIOR HIGH SCHOOL

E. JACINTO ST., DAVAO CITY

In Partial Fulfillment of
ENTREPRENEURSHIP

FREYA
Where True Beauty is Created

Submitted to:
Sir Khien Jason D. Bautista

Submitted by:
Shaira B. Cogollodo
Chenley Mori B. Dawal
Shally Amor J. Dela Pena
Lyelle Rowie Z. Galupar
Marco P. Hectin
Tiffany Aleanna C. Lim
12- de Geronimo

January 25, 2018

1
 TABLE OF CONTENTS
page
I. INTRODUCTION……………………………………………………………………………………..4
a) Name and Address of Business or Company……………………………………………4
b) Name and Address of the Entrepreneurs…………………………................................4
c) Nature of the Business………………………………………………...............................5
d) Statement of Financing Needs…………………………………………………………….5
II. EXECUTIVE SUMMARY…………………………………………………………….......................5
III. INDUSTRY ANALYSIS…...…………………………………………………………………………7
a.) Future Outlook and Trends…………………………………………………………………7
b.) Analysis of Competitors……………………………………………………………………..7
c.) Market Segmentation…………………………………………………...............................9
d.) Industry and Market Forecast………………………………………………………………9
IV. COMPANY DESCRIPTION………………………………………………………........................10
a.) Product/Service……………………………………………………………………………..10
b.) Size of the Business………..……………………………………………………………...10
c.)Office Equipment and Personnel…………………………………………………………..11
d.)Background of Entrepreneurs……………………………………………………………...12
V.PRODUCTION/SERVICE PLAN……………………………………………………………………13
a.) Physical Plant……………………………………………………………………………….13
b.) Machinery and Equipment…………………………………………………………..…….14
c.) Names of Suppliers…………………………………………………………………………16
VI. OPERATIONS AND DEVELOPMENT PLAN……………………………………......................16
a.) Description of the Company’s Operation…………………………………...……………16
b.) Flow of Orders for Goods and/or Services………………………………………...…….18
c.) Technology Utilization……………………………………………...………………………20
VII. MARKETING PLAN………………...……………………………………………………………...20
a.) Pricing……………………………………………………………………………………….20
b.) Distribution………………………………………………………………………………….22
c.) Promotion…………………………………………………………………………………...23
VIII. MANAGEMENT TEAM…………………………………………………………………………...24
a.) Description of the Management Team……………………………………………………24
b.) Organization Plan………………...……………………………………………………..….31
c.) Plans for Recruiting and Training Employees………………..…………………..……..31

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IX. ASSESSMENT OF RISK……………………………………………………………..……………32
a.) Evaluate Weaknesses of the Business…………………………………………………..32
b.) Provide the Contingency Plan of Each Weakness…………..……………………….…32
c.) New Technologies Available…………………………………….……………………...…34
X. FINANCIAL PLAN………………………………………………………………………………...…36
a.) Sales Forecast……………………………………………………………………………...37
b.) Income Statement………………………………………………….……………………….37
c.) Balance Sheet………………………………………………………………………………38
XI. APPENDIX OF SUPPORTING DOCUMENTS………………………………………………….39
a.) Survey Questionnaires or FGD Guide Questions……………….................................39
b.) Market Research……………………………………………………….............................40
c.) Job Description of Employees…………………………………………………………….44
d.) Organizational Chart……………………………………………………………………….46
e.) Resume of the Managers………………………………………………………………….47

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I. INTRODUCTION

Name of Business: FREYA

Address of Business: Block 5 Lot 7 Tacunan, Barangay Matina

Face is the crowning glory of every person because personality and status can be written
on it. It reflects who and what we are. This is the reason that most of the consumers utilize
skincare products to acquire smooth, young-looking face and nourished skin. Thus, the
entrepreneurs are proposing this skincare business named as Freya. The entrepreneurs named
their business as Freya because Freya is the Norse goddess of beauty. Hence, the products
that will be offered and marketed by the business are different variations of beauty soap and
fragrances. At the same time, all beauty soaps and fragrances that will be manufactured and
distributed by Freya are mostly come from organic, natural, and skin-friendly ingredients. Thus,
the entrepreneurs formulated the tagline “Where True Beauty is Created” because the raw
materials that are incorporated to enhance the beauty are not merely artificial in nature.
The main store and office of the business will be constructed on a vacant lot located at
Block 5 Lot 7 Tacunan, Barangay Matina Biao. The factory and warehouse of Freya will also
built five (5) kilometers behind of the main office.

Entrepreneurs
There are five (5) entrepreneurs who propose this business. They are graduates of
business-related courses and shows outstanding business and management skills and high
finance and communication proficiencies in their field. Likewise, they will lead and manage the
entire system of Freya if the mentioned business will take place. Their names and their home
address are listed below:
1. Shaira B. Cogollodo
Purok 13 Sitio Lourdes, Tigatto, Davao City
2. Chenly Mori B. Dawal
Purok 2 San Vincente, Panabo City, Davao del Norte
3. Shally Amor J. Dela Pena
Block 4 Lot 9 Mariano Drive, Damosa Vincent Heights, Lanang Davao City
4. Lyelle Rowie Z. Galupar
Block 4 Lot 3 El Rio Vista Phase 2 Subdivision, Davao City
5. Marco P. Hectin

4
 Block 4 Lot 3 Deca Homes, Davao City
6. Tiffany Aleanna C. Lim
Barangay 29-C 99-1 Juan Luna Street, Davao City

Nature of Business
Freya is a manufacturer and distributor of its original and organic skincare products. It
aims to improve the beauty of every Filipino through producing and circulating beauty soaps and
fragrances that are cheaper and more effective than the ones being sold by large skincare
companies. The business offers different variation of soaps and fragrances for women under
the age bracket of sixteen (16) to fifty-five (55) years old of any social class. These women are
the primary target consumer of the business because women are more gravitated to purchase
and use skincare products for their personal consumption. Men are of the same age bracket are
also the secondary target consumer of Freya because a growing number of men are now
starting to be more conscious about looking good according to a research of U.S. Commerce
conducted in 2015. The business will then distribute the products through its retail store outlets
in different malls across the city of Davao. Moreover, to boost sales, the company will also
contact several public malls of Davao City to purchase the products of Freya in large amounts to
be sold again by them for their own profit. Lastly, Freya will also open its main store at Block 5
Lot 7 Tacunan, Barangay Matina Biao and an online shop through its Facebook page and
Twitter account.

Statement of Financing Needs

The amount needed for the company will be supplied by the six (six) major shareholders,
who are also the partners and owners of the business. Each must contribute one million pesos
(P1,000, 000.00). The accumulated money will be used for the expenses of the company and to
buy equipment and machineries to be used for the smooth operation of the business.

II. EXECUTIVE SUMMARY

Being fair and having a young-looking skin are a Filipino consumer’s descriptions of beauty.
Skincare and cosmetic industry in the Philippines grow larger as they also dominate the global
market worldwide. The report “Asia Personal Care and Cosmetic Market Guide” (2016), the
cosmetics and personal care products increased at $1.281 billion in 2015, which is 75% of the
market, coming from the domestic production of these goods.

5
 With these reasons, Freya will be a manufacturer and distributor of beauty soaps and
fragrance across Davao City. This business will be owned by the partnership of Shaira B.
Cogollodo, Chenly Mori B. Dawal, Shally Amor J. Dela Pena, Lyelle Rowie Z. Galupar, Marco P.
Hectin, and Tiffany Aleanna C. Lim. The company will provide three quality skincare soaps and
one fragrance products namely: Ivory Body Soap, Charcoal Anti-Acne Soap, Oatmeal Facial
Soap, and Sweet Rose & Gumamela Fragrance. They will initially cost Php.140.95, Php.
149.45, Php. 142.95 and Php. 141.60, respectively. After the first six months of selling, all the
products will decrease in price as preparation for larger production rates. The company decided
to divide our market into that 60% of our main target customers are females with age 25 - 55
years old, 25% are customers with females age 16 - 24 years old, and 15% male with ages 16 -
55 years old because these age brackets of females and males consumed the most number of
skincare products.
With amount of Php. 3,176,590.00, Freya will be and can be constructed. Freya will
collaborated with other suppliers in Davao such as Sagana Dairy Farm for goat milk an
buttermilk, New Davao Oil Mill for the coconut oil , and Davao Diamond Industrial Supermarket
for the sodium hydroxide or lye. Meanwhile, the supplier of rose and gumamela petals for
fragrance production is Flower Gifts Davao and Melroy Packaging Supply Store will handle the
packaging containers for both soaps and fragrances of the company that costs Php 20 and Php
35 respectively.
The store’s business hours are from 9 (nine) in the morning to 10 (ten) in the evening.
Freya will hire different personnel such as a secretary, a cashier, four (4) drivers, three (3)
security guards.
The company will employ different technologies to massively produce effective products.
The company will utilize the manual soap cutter in order to cut large blocks of soap within
minutes. Moreover, the business will also employ a duplex vacuum plodder in order to imprint
the brand of logo on the soap. Lastly, soap saponification and Perfume Mixing Tank with
freezing filtration system will be used to purify the soap and remove all impurities in the mixture,
thus, making it clean and smooth in texture. As for the marketing strategies, Freya will be more
informative with the company’s products by placing ads through the means of the internet and
social networking sites. With this approach, the assurance in the increase of rate, productivity,
and service will be extraordinary.
To have a smooth flow of the business, the entrepreneurs of Freya will also be the
management of the company. The Financial Plan clearly shows how the company improves

6
over time in terms of its increasing net income and ability to pay its liabilities. Every year, it is to
be expected that the company will grow for 6%.

III. INDUSTRY ANALYSIS

Future Outlook and Trends
Skincare and cosmetic industry in the Philippines grow larger as they also dominate the
global market worldwide. According to the report entitled “Asia Personal Care and Cosmetic
Market Guide” (2016), the cosmetics and personal care products increased at $1.281 billion in
2015, which is 75% of the market, coming from the domestic production of these goods (see
Appendix C). It was observed that the demand for raw materials and finished products for
skincare also flourish. Local manufacturers of cosmetics and personal care products utilized
different interventions to address local and export demands. Some local products need natural
and organic ingredients such as papaya and lime, avocado, aloe vera, virgin coconut oil,
seaweeds, and alum. The demand for personal skincare and cosmetics make the consumers to
be more aware of their health.
Skincare and beauty products also dominate Davao City. In fact, the Angel Sue Marketing
that sells creams, lighteners, perfumes, and soaps boost its distribution and manufacture
outside the country. This is due to the increasing demand of skincare products globally and its
great innovations in their products. At present, Angel Sue Marketing is continuously expanding
in United States of America and Canada[ CITATION Nel16 \l 1033 ]. Moreover, Davao Region
has 17 clinics across Davao City, Tagum, and Digos. Outside Davao, there are more 50
accredited clinics that produce skincare and beauty products across Southern Philippines.

Analysis of Competitors
The proponents of this business plan found three different competitors of Freya. These
are BN Whitening Shop, Hiyang Beauty Shop, and Bioskin. These skincare shops are widely
available in different parts of Davao and offer similar products to the market.

7p’s BN Whitening Hiyang Beauty Bioskin

Shop Shop
Price Products SRP Products SRP Products SRP
ranges from ranges from ranges from
80php – 500php 75php – 450php 110php – 400php
Product Wide variety of Variety of beauty Covers all beauty

7
 beauty products products using essentials and
from soap, lotions, line extension utilizes different
toner, and facial approach and only ingredients per
scrubs limited to soap, products
lotions, and facial
care products
Place Franchises Franchises Only located in
located located Davao city
throughout the throughout the
Philippines Philippines
People Utilizes dealers by Utilizes dealers by Employees are
reselling and reselling and mostly qualified
distributing distributing and has expertise
products per area products per area for the sales
Promotion Personal selling, Direct Marketing, Direct Marketing,
Direct Marketing, Publicity, Personal Publicity
Publicity, selling
Advertising
Packaging Labeled and sole Labeled and sole Labeled and sole
purpose is to purpose is to purpose is to
protect and protect and protect and
preserve the preserve the preserve the
product product product
Positioning Expensive Cheaper Expensive

Market Segmentation

60% Females with age of 22 to 55 years old

8
 Target Market
25% Females with age of 16 to 24 years old

15% Males with age of 16 to 35 years old

According to a report that was published by the Allied Market Research (2016), 52% of
the overall population of women in the US spend over $150 per year on these products but
younger women with ages ranging from 18 – 25 years old has lesser usage of these products
than that of women with ages 25 and above. Furthermore, male consumers are also a potential
target market for these products. Thus, the proponents of this business decided to divide our
market. 60% of our main target customers are females with age 25 - 55 years old, 25% are
customers with females age 16 - 24 years old, and 15% male with ages 16 - 55 years old.

Industry and Market Forecast

Figure 1. Revenue Sales of Skincare Industry

Source: Statista, December 2017

Based from the figure, the Philippine skin care segment is expected to grow annually up
to 2021 and by 6% (CAGR 2018 – 2021). Based on the statistics shown, the proponents can
conclude that the forecast in the skin care market is indeed growing. According to Cabiao
(2013), the beauty trend in young household (those with 12 years old and below) and adult

9
homes (those whose members are 19 and up) buy mostly skincare and beauty products from
supermarkets and direct sales channels since being fair is a Filipino consumer’s description of
beauty.

IV. COMPANY DESCRIPTION

Product
Freya provides three quality skincare soaps and one fragrance products namely: Ivory
Body Soap, Charcoal Anti-Acne Soap, Oatmeal Facial Soap, and Sweet Rose & Gummamela
Fragrance. These products will be a start-up for the company. After the first six months of
selling, all the products will decrease in price as preparation for larger production rates. Below is
the table stating each product with their corresponding prices:

Name of Product Initial Price (First Six Months) Final Price (After Six
Months)
Ivory Body Soap Php.156.53 Php. 155.50
Charcoal Anti-Acne Soap Php.166.70 Php. 165.00
Oatmeal Facial Soap Php. 159.45 Php. 158.00
Swee Rose & Gumamela Php. 157.47 Php. 155.45
Fragrance

Size of the Business

The business to venture is a general partnership. This legal organization has five owners
with profits and losses divided among the partners to each of their own liability. Specifically,
Freya’s general owners will be responsible for their own tax liabilities including money earned
from the partnership. All of the partners have the authority to make decisions about running the
business. They have the right to make legally binding decisions unless the majority of the
partners called for majority votes in make decisions. They will not be also allowed to partake
any other similar and different skin-care businesses to avoid intra-competition among the
partners. The owners of Freya are also the entrepreneurs behind this project namely: Shaira B.
Cogollodo, Chenly Mori B. Dawal, Shally Amor J. Dela Pena, Lyelle Rowie Z. Galupar, Marco
Hectin, and Tiffany Aleanna C. Lim

Office Equipment

10
 The company would need an extensive use of supplies. Office equipment are needed to
organize the business papers and file the contracts that are to be made and signed.
 Desktop units, printers, and photocopiers - save the important data of the company and
to help each employee to become more productive and efficient in their daily work schedule.
 Telephones - connect with clients while being formal in work hours.
 Point of Sale System – records purchases happen inside Freya main store
 Digital Camera - take pictures of the products that will be seen by the clients as the
packaging of the product and document the events that will be held by Freya.
 CCTVs - keep the place safe and secure incase of emergencies or trouble.
 Office chairs and tables, monoblock chairs, and long tables - provide a comfortable
working area.
 Cabinets - for other placement and temporary storage of materials for safe keeping.
 Van - transports the products across far places and cities.
 Soap Mixer & Cutter – produce quality soaps in correct sizes
 Perfume Mixing Tank with Freezer Filtration System – produce quality fragrances
 Freezers – avoid spoilage of perishable goods coming from the suppliers

Personnel

Personnel Number Wage per Personnel Others

in a Month
Security Guard 1 Php. 10,350 With Benefits
Cashier 1 Php. 10,350 With Benefits
Drivers 1 Php. 10,200 With Benefits
Secretary 1 Php. 12,000 With Benefits

Background of the Entrepreneurs

Shaira B. Cogollodo
Graduate of Master of Science in Business Administration (MSBA) in Financial Management
January 9, 1992
26 years old
Purok 13 Sitio Lourdes, Tigatto, Davao City
Owner of Happy Café located at Ponciano Street, Davao City
11
 Chenley Mori B. Dawal
Graduate of Master of Science in Business Management
Graduate of Bachelor of Science in Chemical Engineering
July 18, 1990
27 years old
Purok 13 Sitio Lourdes, Tigatto, Davao City
Former Technical Director of San Miguel Company
Former Director of Internal Affairs of MaMi’s Skin Essentials Corporation at Panabo City

Shally Amor J. Dela Pena

Graduate of Bachelor of Science in Business Administration (BSBA) in Marketing
Management
July 27, 1992
25 years old
Block 4 Lot 9 Mariano Drive, Damosa Vincent Heights, Lanang Davao City
Former Marketing Officer of a Starbucks Café located at Torres Street, Davao City

Lyelle Rowie Z. Galupar

Graduate of Master of Sciencein Business Administration
May 6, 1992
25 years old
Block 4 Lot 3 El Rio Vista Phase 2 Subdivision, Davao City
Former General Manager of Max’s Restaurant
Former General Manager of a Green Coffee Café located at Bajada Street, Davao City

Marco P. Hectin
Graduate of Master of Science in Business Administration
June 16, 1992
25 years old
Deca Homes, Davao City
Former General Manager of Grand Mesang Hotel, Davao City
Former Internal Affairs Manager of Abreeza’s Starbucks Cafe

Tiffany Aleanna C. Lim

Graduate of Bachelor of Science in Business Administration (BSBA) in Human Resource
Development Management
June 16, 1992
25 years old
Barangay 29-C 99-1 Juan Luna Street, Davao City
Former Human Resource Manager of Marco Polo, Davao City
V. PRODUCTION/SERVICE
Former PLAN
Internal Affairs Manager Humberto’s Diner and Hotel
Physical Plant

Floor Plan of Main Store

12
 Floor Plan of Production Site

Machinery and Equipment

PRODUCTION AND DISTRIBUTION EQUIPMENT

13
Equipment Number of Model Price Total Cost
Units
Freezer 1 Matrix MX-BD157 ₱ 9,999.00 ₱ 9,999.00
Chest Freezer
Soap Mixer 2 SNS Scarlett ₱ 589.00 ₱ 1,178.00
Multifunctional
Mini Hand
Mixer

Soap Cutter 2 Household Wooden ₱ 732.00 ₱ 1,464.00

Soap Cutter
Box Pine
Van 1 MITSUBISHI L300 ₱ 498,000 ₱ 498,000
2016
TOTAL Php. 510, 641.00

OFFICE EQUIPMENT

Equipment Number of Model Price Total Cost

Units

14
 Computer Set 5 PCX DESKTOP – ₱14,995.00 ₱74,975.00
BASIC EM2
Printers 2 HP Deskjet 1112 ₱ 999.00 ₱ 1998.00
Printer (White)

Photocopier 1 Ricoh Aficio MP161 ₱ 14,888 ₱ 14,888

Telephones 2 Panasonic Corded ₱ 670.00 ₱ 1,340.00
Telephone
KX-TS500MX
Digital Camera 2 Amkov 24MP Digital ₱ 3,999.00 ₱ 7,998.00
Camera with
3" TFT Flip
LCD
CCTV 1 Qube TVI 1.0MP (8 ₱ 20,450.00 ₱ 20,450.00
Channel
Package)
Office Chairs 8 Removable Stretchy ₱ 745.00 ₱ 5960.00
Swivel Chair
Covers Office
Armchair Soft
Slipcovers
Mono-block 2 set Charm Monoblock ₱ 3,000.00 ₱ 3,000.00
Chairs Chair (set of
6)
Tables 20 KRUZO Minimalist ₱ 2,999.00 ₱ 59,980.00
Home/Office
Desk Table
Drawers 3 4-Layer Filing ₱ 3,950.00 ₱ 11, 850.00
Cabinet with
Lock
Point of Sale 1 IPCR004 9-inch POS ₱ 14,099.00 ₱ 14,099.00
Terminal Touch Screen
Machine

Electric Fans 9 Union UGSF-1635R ₱ 799.00 ₱ 6,392.00

AS 16" Stand
Fan
TOTAL Php. 227,840.00

Name of Supplier

Name of Supplier Products to be Supplied Address

Sagana Dairy Farm Goat Milk, Butter Milk Mati, Davao Oriental

New Davao Oil Mill Coconut Oil KM 14 Barangay Ilang,

Panacan, Davao City
Davao Diamond Industrial Lye F. Bangoy Street, Poblacion

15
 Supermarket District, Davao City.
Flower Gifts Davao Roses and Gumamela Lopez Jaena Street, Davao
City
Melroy Packaging Supply Packages J.P. Laurel Avenue,
Store Poblacion District, Davao City

VI. OPERATIONS AND DEVELOPMENT PLAN

Company’s Operation
Freya is Davao City’s newly skincare business in skincare and fragrance. With finest
range of facial soaps and fragrance made from cheap yet premium quality of materials
Mindanao has to offer, it is no wonder that it is an ultimate destination for Beauty. Freya’s
main store office and factory will be located at Block 5 Lot 7 Tacunan, Brgy. Matina-Biao. The
choice of location makes it easily accessible for anyone who wishes to go and visit our store.
In terms of the store’s legal environment, Freya will not fail to obtain all the necessary licenses
and business permits that are necessary for the business.
The store’s business hours are from 9 (nine) in the morning to 10 (ten) in the evening.
The company will always make sure to provide exceptional services, and offer some expert
advice from our beauty advisor to ensure that our customers are satisfied. As a manufacturer
and distributor, Freya will avoid any errors in the production and distribution of products. To do
this, the company always keep track of its existing inventory. Using the up-to-date soap mixer
machine and soap cutter, the company ensures that the packages and the outputs are of high
quality.
Freya will collaborated with other suppliers in Davao such as Sagana Dairy Farm for goat
milk an buttermilk, New Davao Oil Mill for the coconut oil, and Davao Diamond Industrial
Supermarket for the sodium hydroxide or lye. The other materials will be purchase from public
market in wholesale. Meanwhile, the supplier of rose and gumamela petals for fragrance
production is Flower Gifts Davao located at Lopez Jaena Street, Davao City. Lastly, Melroy
Packaging Supply Store located at J.P. Laurel Avenue, Poblacion District, Davao City will
handle the packaging containers for both soaps and fragrances of the company that costs Php
20 and Php 35 respectively.
Freya will hire five (5) skilled and well-trained laborers whose responsible are to ensure
that every department of the company is harmonious with each other. Thus, this will ensure the
productivity and the sales are outstanding. Freya will also hire a secretary who will be
responsible for making the functioning of the management as smooth as possible. He/ she will

16
also maintain the effective records of the business and the administration, and guarantee that
the flow of meetings are well-organize. Freya will also have a cashier that is befitting for the
crucial job. The cashier is responsible for interacting with the customers, and handling the
money. Furthermore, Freya will have two (2) drivers that will be responsible in transporting the
products to Freya’s stores located in the malls of Davao. Additionally, the one (1) hired security
guards from an agency are responsible in securing the premises and the personnel through
patrolling, monitoring the surveillance of the building and equipment. They are also responsible
for permitting entry to the building, restraining trespassers, and reporting regularities in order to
prevent losses.

Flow of orders for goods and/or services

Figure 2. Supplier to Company Flowchart
x
Start

Meet the suppliers

17
 The suppliers will
present the
products
offered

Does Frey need their

products?

Negotiation about the Find another supplier

product

The suppliers will show the

total cost of the products Is Freya still interested with the
products of the new supplier?

Is Freya still interested upon

knowing the price?

Pay the
supplier

Sign the
contract

Delivery
of
Goods End

Aftersales
services
Figure 3. Company to Suppliers Flowchart
Start

Welcome the
customers

Is the customer interested?

Present the products

offered
18
Technology Utilization
Freya will employ technologies such as soap mixer machine, which will be used to mix
different raw materials in order to make soap. Apart from that, Freya will also use manual soap
cutter in order to cut large blocks of soap within minutes. Moreover, the business will also
employ a Duplex Vacuum Plodder in order to imprint the brand of logo on the soap. Lastly, Soap
Saponification and Perfume Mixing Tank with freezing filtration system will be used to purify the

19
soap and remove all impurities in the mixture, thus, making it clean and smooth in texture. As
for the marketing strategies, Freya will be more informative with the company’s products by
placing ads through the means of the internet and social networking sites. With this approach,
the assurance in the increase of rate, productivity, and service will be extraordinary.

VII. MARKETING PLAN

Pricing
Even though many companies have been selling cosmetic and skincare products, Freya
offers similar but innovative, small-cost, and quality beauty soaps and fragrances. With this
reason, the business will employ price skimming strategy as Freya opens. Within the first six
months of catering the customers, the prices of each product will be charged at higher prices.
As the six months ended since from the opening of Freya, the prices will be lowered when
demand falls [CITATION MaH10 \l 1033 ].
The different soaps that will be sold by Freya have common ingredients such as goat
milk, buttermilk, coconut oil, and lime juice. The lime juice will be bought wholesale in the public
market. The supplier of goat milk and butter milk is Sagana Dairy Farm located at Mati, Davao
Oriental. Based from the report of Philippine Statistics Authority (2016) on the dairy industry
performance, the current price of one (1) liter of a goat milk is Php. 50. The same report also
shows that buttermilk is being sold Php. 55.00 for 255 gram. Coconut oil will be bought from the
supplier of this business named New Davao Oil Mill Incorporation located at KM 14 Barangay
Ilang, Panacan, Davao City. One (1) liter of coconut oil costs about Php 400 at this moment.
The supplier of lye or sodium hydroxide is Davao Diamond Industrial Supermarket located at F.
Bangoy Street, Poblacion District, Davao City. According to them, one (1) kilogram of lye costs
Php. 100.
For special ingredients such as oatmeal and charcoal powder will be purchased at a
public mall and they are being sold Php. 65.00 per 400 grams and Php 400 per sack
respectively. Every rose and gumamela flowers costs Php. 15 and Php. 10 per stick. Lastly,
Melroy Packaging Supply Store located at J.P. Laurel Avenue, Poblacion District, Davao City
will handle the packaging containers for both soaps and fragrances of the company that costs
Php 20 and Php 35 respectively. Alcohol will be bought wholesale from Davao Diamond
Industrial Supermarket by Php 120 for (1) one liter. Lastly, the entrepreneurs calculated the 30%
of the total costs of making a certain product and the answer of it will be added to the total costs
of making the product to come up with the selling price.

20
 The tables below shows the breakdown of every products and their corresponding
prices. They also present the expenses of every ingredient and material involved in the
transformation process. During the first six month of running the business, all the prices will be
sold at their higher prices and all the prices will mark lower slowly after.

Ivory Body Soap 135g

Initial Selling Price (First 6 months): Php. 156.53
Final Selling Price: Php. 155.50
Materials Price
200 mL Goat Milk Php. 10.00
5 g Buttermilk Php. 1.95
20 mL Coconut Oil Php. 8.00
30 mL Lime Juice Php. 8.00
Others: Manufacturing Cost Php. 60.00
Packaging Php. 20.00
Contribution Margin (45% of the
Product Cost) Php. 33.00
Total: Php. 156.53

Charcoal Anti-Acne Soap 145g

Initial Selling Price (First 6 months): Php. 166.70
Final Selling Price: Php. 165.00
Materials Price
200 mL Goat Milk
Oatmeal Facial Soap 150g Php. 10.00
5 g Buttermilk
Initial Selling Price (First 6 months):Php.Php.1.95
159.45
20Final
mL Coconut Oil
Selling Price: Php. 5.00
Php. 158.00
30 mL Lime Juice
Materials Php.
Price 8.00
30200
g Charcoal
mL GoatPowder
Milk Php. 10.00
Others:5Manufacturing
g Buttermilk Cost Php. 60.00
1.95
20Packaging
mL CoconutCost
Oil Php. 20.00
5.00
Contribution Margin (45%
30 mL Lime Juice of the Php. 8.00
ProductPowder
30 g Oatmeal Cost) Php.
Php. 51.75
5.00
Total:
Others: Manufacturing Cost Php. 229.90
Php. 60.00
Packaging Php. 20.00
Contribution Margin (45%of the
Sweet Rose & Gumamela
Product Cost) Fragrance
Php.100mL
49.47
Initial SellingTotal:
Price (First 6 months):Php.Php.159.45
157.47
Final Selling Price: Php. 155.45
Materials Price
30 mL Ethyl Alcohol Php. 3.60
10 Rose Petals Php. 15.00
10 Gumamela Petals Php. 10.00
70 mL Tap Water Php. 5.00
Others: Manufacturing Cost Php. 50.00
Packaging Php. 25.00 21
Contribution Margin (45%of the
Product Cost) Php. 48.87
Total: Php. 157.47
Distribution
Since Freya are also the manufacturer and the distributor of the products, the
proponents of this plan recommend both retailing and wholesaling strategy to enlarge its
influence and distribution to the market when Freya can expand itself and is profitable. In
retailing strategy, a store outlet would be built first inside the Gaisano Mall of Davao and then in
SM Davao City. Gaisano Mall is a strategic place to make Freya known to the consumer
because the mentioned mall holds a high volume of customers compared to the other malls as it
is the largest among forty (40) malls in Mindanao and Visayas[ CITATION Rey13 \l 1033 ]. In
addition, social media sites such as Facebook and Twitter will be utilized to reach out the
consumers that the physical store cannot able to access. In this method, the marketing will also
increase as, through electronic retailing, the business company will able to virtually display their
products to a wider range of consumers. Social media sites can now also be platforms to
advertise the product of a certain company and they serve as alternative and efficient channels
of messages between a buyer and a seller to maintain harmonious customer-buyer relationship
by clarifying ambiguous information about the products and send reviews about them
[ CITATION Aje17 \l 1033 ].
Lastly, in wholesaling methods, Freya will also coordinate with the target malls to
purchase our products in large amounts to be displayed and sold by them inside their
department stores and groceries along the skincare corner for their own profit. This process will
directly maximize the publicity of the business.

Promotion
The graph below shows the percentage distribution of different advertisement channels
that will be used by the business to promote its products to the public.

22
 25%

40%

Social Media

Newspaper
35% Flyers and Brochures

Figure 4. Percentage Distribution of Different Advertising Channels Usage in Promotion of the

Products

1. Social Media. Forty percent (40%) of advertisement will come from social media. It has the
highest percentage in serving as channel of promotion because social media is a cost-saving
and effective method to display and advertise our products. At the same time, a lot of people
are also spending time in social media sites. Hence, this is the reason that the company will
focus more on advertising through social media. The Sales Core Team will create and lead
the Facebook Page and Twitter Account of the company. The page and account will show all
the products and their prices and the company's business information and contact details.
2. Newspaper Advertising. The company will also promote the business through newspaper
prints as its second focus. The Sales Core Team will also produce 5 inches by 7 inches
pamphlet of the company. Likewise, it will present the products and their prices and the
company's business information and contact details. It has the second highest of usage
advertising channel percentage (35%) because newsprint maintains its dominant influence to
the public. The Sales Core Team will also coordinate with the Davao SunStar News
Publishing Company to purchase a place of the company's pamphlet on their newspaper.
Freya selected Davao SunStar since it is the local newspaper of Davao and offers less
expenses of publishing our advertisement compared to the mainstream newsprint company.
According to the website of Sunstar (2018) in Davao, the cost of their advertising on
newspaper is Php. 7 per inch.
3. Flyers and Brochures. Eventhough flyers and brochures seem to be outdated, they still
capture the attention of the consumers and send out the right message to the public. With

23
 this method, it allows the public know the company in creative way and share business
information to those who may not notice before.

VIII. MANAGEMENT TEAM

A strong indicator of long-term success is the capacity of the management team. Thus, the
company formed a team composed of various professionals in their own area of expertise who
are shaped with excellence, values, and character.

Name of Job Description Job Specification Compensation

Occupation
Chief Executive  Responsible for  Owns a large  Php. 20, 000
Officer leading the financial share and salary per month
development, physical  13th Month Pay
implementation and contribution on the  Medical Health
execution of the company Insurance
company’s long-  Must be atleast a  Life Insurance
term strategy with a graduate of  Sick leave
view to creating master’s degree in  Christmas Bonus
shareholder value. business
 Communicates on management
behalf of the and/or business
Company to administration
shareholders,  Have atleast two
employees, other years of working
stakeholders and experience in
the public. corporate
governance
 Demonstrates high
proficiency and
knowledge of profit,
and loss, balance
sheet and cash flow
management and
general finance and

24
 budgeting
 Portrays great
people skills and
fast in making
decisions and doing
work under any
pressure
 Fluent in English,
Cebuano, and
Filipino languages
General Manager  Responsible for  Must be atleast a  Php. 19, 000
overseeing all graduate of salary per month
administrative master’s degree in  13th Month Pay
functions in your business  Medical Health
business. management Insurance
 Significant role is and/or business  Life Insurance
leading and administration  Sick leave
directing  Have atleast two  Christmas Bonus
employees. years of working
experience related
to the position
 Demonstrates high
proficiency in time
management
 Acquired advanced
skills in Business
Math
 Acquired advanced
skills in reading and
writing business
and technical
reports
 Portrays great
people skills and

25
 fast in making
decisions
 Fluent in English,
Cebuano, and
Filipino languages

Internal Affairs  Works with  Must be atleast a  Php. 18,500

Manager executives and graduate of  13th Month Pay
human resource bachelor’sdegree  Medical Health
managers to help in business Insurance
them maintain a management  Life Insurance
positive relationship and/or business  Sick leave
with employees. administration
 Christmas Bonus
 Possess firm
knowledge in
internal relations
and management
 Have atleast two
years of experience
in public relations
 Ability to maintain
accountability
among the staff and
members of the
company
 Understanding of
the mission and
aspiration of Freya
 Strong
interpersonal skills

26
External Affairs  Creates and  Must be atleast a  Php. 18,500 salary
Manager maintains a graduate of per month
positive image for bachelor’s degree  13th Month Pay
a company in business  Medical Health
through media and management Insurance
communications. and/or
business  Life Insurance
 Supervises the administration  Sick leave
writing of several  Possess firm  Christmas Bonus
documents relating knowledge in public
to public relations relations and
and advertising management
to public relations  Have atleast two
and advertising. year of experience
in public relations
Accounting and  Concerned with  Must have a degree  Php. 18, 000 per
Finance Manager tracking and in finance, month
reporting the accounting, and/or  13th Month Pay
financial economics  Medical Health
transactions of a  Proven work Insurance
business. experience as a  Life Insurance
 Responsible for finance officer or  Sick leave
managing the similar role  Christmas Bonus
general ledger,  Solid knowledge of
cash flow financial
management, accounting
collections, procedures
recognizing  Advanced MS
revenue, analyzing Excel skills
profitability,  Knowledge of
reporting earnings, financial
managing debt, and regulations
paying taxes.  Sharp
management

27
 skills
 Strong ethics with
an ability to
manage
confidential data.
Strategic and  Responsible for  Must be a  Php.17,000 salary
Planning planning and graduate of per month
Officer directing an bachelor’s degree  3th Month Pay
organization's in Business  Medical Health
strategic and Administration, Insurance
longrange goals. Industrial  Life Insurance
 Conducts Management,  Sick leave
organizational Finance,  Christmas Bonus
reviews to identify Economics, or any
strengths, other related
weaknesses, business field
opportunities and  Have atleast 2
threats (SWOT). years of working
strategy position
within a fast-paced
and dynamic
business
environment
 Demonstrate
proficiency in the
use of Ms Excel,
Word, and
Powerpoint
Technical and  Coordinates all  Possess a firm  Php. 17, 000 salary
Operation activities of knowledge on per month
Director technicalities in the technical  13th Month Pay
production and operations of soap  Medical Health
operation and fragrance Insurance
 Maintains the industry  Life Insurance

28
 production and  Must be a  Sick leave
transformation of graduate of a  Christmas Bonus
inputs within the business
maximum management
acceptance range and/or business
administration
 Acquired atleast
one year work of
experience related
to the industry of
soap and
fragrance
manufacture
Human Resource  Originates and  Must be a  Php. 15, 000
Manager leads Human graduate of human  13th Month Pay
Resources resources  Medical Health
practices and management Insurance
objectives that will course  Life Insurance
provide an  Have atleast one  Sick leave
employee oriented year of experience  Christmas Bonus
and high related to the
performance position
culture.  Fluent in English,
 Facilitates seminars Cebuano, and
and workshops that Filipino
improves the  Strong ethics with
capacities and skills an ability to
of personnel behind manage
the manufacture confidential data
 Officiates hiring of
competitive and
good character
staffs and utilities

29
Organization Plan
Figure 5. Organizational Chart

Process of Recruiting and Training

Recruitment
 The owners/stockholders will start posting on social media, on the website, or through
posters about the said hiring. Three (3) phases will be done in the said recruitment. The

30
 first one will be the accepting of resumes, recommendation letters, and identification
proofs, and other documents needed in applying. The second phase will be the interview
for the short-listed applicants, and the last phase will be the interview about the
employees’ commitment towards the job they are applying for and the signing of
contracts stating about the terms and agreements in the business.
Internships, Assessments, and Trainings
 After being hired, the employees will have an internship for twenty (20) days. In these
days, the hired applicants will familiarize their own responsibilities and duties in the
business. They will also familiarize the whole operation in the business, together with its
objectives and mission. Assessments will be done every month to track the employees’
performance, problems and complaints will also be identified to be addressed. Lastly, a
training every year will be done in forms of workshop and team building that will not only
improve the employees’ camaraderie towards each other, but will also be an avenue for
them to have a leisure time and bond together.

IX. ASSESSMENT OF RISK

Weaknesses of the Business and their Contingency of Plan

The table below shows the possible weaknesses and their corresponding plan of action
of Freya as a newfound manufacturer and distributor business of original skincare soaps and
fragrances as seen on the left column. The left column of the table shows the foreseen
drawbacks of the company while the right column tells the recommended action to be taken to
resolve the conflicts as they emerge in the future.

Weaknesses of Freya Plan of Action

Unrecognizable Brand and Competition against Allocation of Budget in Promotion. 40% of
Large Skincare Companies. Since Freya is a the capital of Freya will be allocated in
new company if it is allowed to be built and the Promotion sector of this business
organized, it is also offering products that are to boost the advertising movement of
new to the eyes of the public and of the market. the business and of the products. The
At the same time, there are so many brands and Sales Core Team should be composed
products of skincare. Plus, the public usually has of members who are competent and
trust in bigger companies, our product would be show firm and productive performance.

31
 hard to promote. Customers tend to use They must be dedicated to their work
products they know and rarely go for new brands because the public recognition of the
that seem promise the same results. company and of the product depends
on them. Daily advertisements will be
performed on the selected advertising
channels.
Rare Raw Materials. Most of the raw materials are Location of More Suppliers. During the
infrequently being produced by the industry introductory stage of Freya, we will
because of the expensiveness of gathering and locate other suppliers of the raw
processing them. With this, the raw materials of materials and coordinate with them to
soap and fragrances are also expensive to supply us with the necessary
purchase. ingredients.
Be the Supplier. When Freya will have
profited high earnings from different
transactions, the company can also
start to purchase a piece of land and
build small farmhouses that will breed
goats, grow coconut to produce more
raw materials.
Few Suppliers of Raw Materials. Freya only chooses Location of More Suppliers. During the
suppliers of goat milk, buttermilk, and coconut oil introductory stage of Freya, we will
that are near to the main building company store locate other suppliers of the raw
and manufacturing house of Freya to reduce the materials and coordinate with them to
costs of transportation. Also, there are limited supply us with the necessary
supplier of our raw materials of soap. ingredients.
Connection to Local Farmhouse. We can
also reach out to local farmhouse to
sell their materials, which are
ingredients to the products, to the
company.
Lack of Equipment and Labor Power. Because Freya Enhancement of Laborers’ Skills. In order to
will start as manufacturer and distributor of its produce great number of products, the
own skincare products in a medium-sized Operations and Development Core
location, the equipment and human power that Team should orient the hired workers
will be utilized is less in number. The machines from operating the machines and

32
 of soap-making is expensive to purchase so we making the product to the packaging of
will only buy first two mixers and three soap the product. The Operations and
cutter. With this number of equipment, the Development Core Team should also
business will only require 10-15 labor workers to hold a simple seminar to enhance the
make soap and package them. Thus, this skills of the laborers and offer them
number of laborer and equipment may produce incentives if they perform
small amount of number that will not satisfy the outstandingly.
demand of the market.

New Technologies Available

At present, there are also different machines and new technologies that produce soaps
and fragrances for commerce and personal usage. The website of Detergent & Soaps (2018)
presents different equipment for soap and fragrance production that are now available globally.
With these, there are technological opportunities that will be employed by Freya in the
production of the products.
According to the website of Detergent & Soaps, soap production requires four
classification of equipment to create soaps in great number. These are mixer machine, soap
cutting machine, duplex vacuum plodder, and soap saponification section. The table below will
inform the readers what technologies that the Freya will be employed in the manufacture of
soaps and fragrances.

33
Name of Technology: Soap Mixer Machine
Will or Will Not Be Employed: Will Be Employed
Projected Benefits: It is used to mix the different raw materials used in soap-making. The
machine can be used to mix a variety of additives with raw soap and
produce hard paste form. The business company will definitely use this
machine because, without it, soap products will not be created. Moreover,
the company will also use the latest technology of it because the latest
design was crafted to develop soaps in a uniform texture with color and
perfume. Hence, this machine promotes uniformity in the texture, color,
and odor for soaps.

Name of Technology: Manual Soap Cutter

Will or Will Not Be Employed: Will Be Employed
Projected Benefits: It is designed to cut large blocks of soap within minutes manually. It allows
the manufacturer to come with the option of Extra cutting frame and tables
for different full size bars or hotel size bars, extra wire and manual cutter
easy hoist system. Hence, the soaps that will be made by Freya can be
also endorsed not only for household purposes but also for commercial
and industrial usage in the future.

34
Name of Technology: Duplex Vacuum Plodder
Will or Will Not Be Employed: Will Not Be Employed
Evaluation of Weakness: It is used to imprint brand of logo on the soap and shaped them into
a ribbon-like figure. The non-utilization of this process have no direct
downside to the company, however, the consumers may tend to
forget the brand name of the soap they will be using. At the same
time, this equipment will not be employed because there will be a
box that will package the soap. The box will be imprinted with the
logo, business

Name of Technology: Soap Saponification

Will or Will Not Be Employed: Will Be Employed
Projected Benefits: It is a process that an oil is mixed with sodium or potassium hydroxide.
This allows the purification of soap and removal of impurities in the
mixture. With this method, the soap that will be produced is clean and
smooth in texture.

35
Name of Technology: Perfume Mixing Tank with Freezer Filtration System
Will or Will Not Be Employed: Will Be Employed
Projected Benefits: It is a latest equipment for making perfume and it is embedded already
with mixing tank and freezer filtration system. This reduces costs in
purchasing other equipment because this is two-in-one machine for
perfume-making. This model is ideal for cleaning cosmetic and perfume
products. It keeps the manufacturing process clean

X. FINANCIAL PLAN

This most element of the business plan shows the breakdown of expenses of the
business and the net profit of it for three (3) years. This part covers the sales forecast of Freya,
income statement, and the balance sheet of the business.

Sales Forecast
Monthly Sales Forecast for Years 2018, 2019, and 2020

36
Annual Sales Forecast from Year 2018-2020

Income Statement
Monthly (January to December) Income Statement for Year 2018

37
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39
40
41
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