Kabuling Learning Center, Inc.

Daguma, Bagumbayan, Sultan Kudarat

Chapter 2

General company description

The denim bags and pouch choose to become a corporation to distribute equally our
responsibilities in our business to easily do our job, A company that group of people
authorized to act as a single entity and recognized as such in law the main reason for
forming a corporation is to limit the liability of the owners. Amie denim bags was
managed by corporation realized from by a group of individual with visionary about
reality because on what are trendy now a days the name Amie is came from French word
means friend. Denim which the main materials were recycle in which we collected used
denim pants and denim clothing from our team and from tailoring shop nearby. This
company offers a DIY product and premade products that are designed by our team. All
the pieces and design are made for everyone who wanted to have a nice looking
affordable denim bags. This DIY bags from jeans is the perfect weekender bag that easy
to make and only requires some basic sewing skill to create.
Mission statement: Is to establish a world class bags. It will make its best efforts to
satisfy customers by creating unique design, friendly customer service and products of
consistently high quality Amie denim bags will invest its profits to increase the employee
satisfaction but at the same time gaining stable returns

Vision statement: To become a company that best understands and satisfies the
customers with its product and to be the leading brand in the denim bags manufacturing
place in the Philippines for the next ten years

Business Goals: We aspire to be the market leaders in providing quality products within
years from inception increase the number of design per year increase profit and that will
satisfy costumers with Amie denims products diversify into more eco friendly products

Objectives: To be bags manufacturing company who exceed costumers expectation to

increase the number of design offer by 10-20% per year to develop profitable sustainable
 Kabuling Learning Center, Inc.
Daguma, Bagumbayan, Sultan Kudarat

company to increase the number of product sold by 30% each years to at least maintain a
65% gross margin.

Philosophy: Amie’s philosophies are: First, listening the key to understanding. Second,
employees are a sustainable strategic advantage. Third, never avoid making decision.
Lastly, business is a marathon so make sure you can survive the risk.

Policy: The company is committed to fostering a work environment in which all

individuals are treated with respect and dignity it is created when a customers is
prospected for the products when it offer to them to ensure the products offers to the
market are suitable for the needs. And the customers committed to taking care the
products.

Company strength and weaknesses: Strength Unique style of assorted bags the
flexibility to provide customized denim stuff, good internal communication. High
durability of the products. Versatility or ability to adapt to an ever-changing environment.
Weaknesses currently struggling to meet deadlines to market the products limited start-up
costs due to low budget

Legal form of ownership: Corporation the firm profits and losses are reported on owners
personal tax returns in proportion with each stakeholder of the firm.
 Kabuling Learning Center, Inc.
Daguma, Bagumbayan, Sultan Kudarat

Chapter 3

Product and Services

Our product bags and pouch are made up of denim which is a sturdy cotton warp-face
textile we have come up this kind of product since denim now days is very trendy denim
design has consistently been fashionable in the Philippines and that is why we have
chosen this product.

Product sources: the source of raw materials needed will come mainly from our country.
The team has conduct of the suppliers on those countries, which enables her to purchase
denim more easily the raw materials will be stored in a well-maintained storage room to
keep the fabrics sturdiness.

Pricing

Table 1.1

Item/Service Cost Remarks

Denim cloth Recycle (Free)

Zipper P5.00/each Retail Price

Sewing Trends P10.00/roll Retail Price

Sewing Needle P20.00/set Retail Price

Design Patches P120/set Retail Price

Total manufacturing cost P155.00

With reference to table 1.1 it show the cost of the materials and service needed to product
would be 25.00 each hence, our profit will be 10.00 each product the mark-up percentage
will come up the total manufacturing cost added the profit of each product we divided it
into two, we come up to the mark-up percentage of 13% in the following profit, this only
 Kabuling Learning Center, Inc.
Daguma, Bagumbayan, Sultan Kudarat

a small because we only starting a business and putting a small capital, but if the product
will become trend in the market it would definitely increase our profit or pricing.

For our denim cloth if will getting from our team and tailoring shop nearby as free cost.

For the rest or our raw materials, we bought them from retail and wholesale price at
NOVO, Central Plaza at Valencia Store with the following market price per materials.

For the sewing service, our team in the company would offer their skill and knowledge in
sewing our products in a free cost of service .So that our free in sewing product will put
in a company saving or will used to buy some material to enhance and create new unique
products for the costumers.
 Kabuling Learning Center, Inc.
Daguma, Bagumbayan, Sultan Kudarat

Chapter 4

Market Analysis

Our market size would be large market as there a lot of competitors at from big
competitors such as Isulan Central plaza, MGM, City mall etc. from small competitors
who are in public market like vendors, the profit that we will depend on the costumer.
The capital we have spent is our percentage share of the market, A market share where
we can recover our capital, so that we can produce another product to sell.

Our target costumer are the students which we determined that has higher demand on the
market which they are called as millennial as of now generation the consumer might
prefer to buy things that they would feel attractive to someone and owning apart from
being functional.

Growth potential and opportunity for our business would be easy as own business, would
be easy as own business requires small capital because the important materials are free
and can be recycled but the competition in the market is tough as there are a lot of
competitors and known brands which the costumers would prefer the barriers we one
currently facing one high marketing cost.

We would overcome the barriers by finding new strategy to market our product we will
having a research on how to sew different kinds of design we will make, to make on
product more attractive to the costumers eye and make our product be better so that it
would recognized in technology today is now increasing and further improve to produce
a good and better quality products in the market. Since our denim product made from
handicrafts and own force, for us to close and leaned to machine to produce also a denim
product to meet the satisfaction of the consumers. But also to lesson the burden and
tiredness of the team to making denim products in different variety, this could not badly
effect, otherwise this could help us to fasten the production of operation in making more
products, even if we can put high capital or to have pay taxes and other document to run
the company these could legally implements for business sector.
 Kabuling Learning Center, Inc.
Daguma, Bagumbayan, Sultan Kudarat

Changes in economy affect the business, because the market seeking move durable and
long team used of the product. the increasing demand of raw materials and price in the
market, we put action to increase also our price and earn profits to come up from
expenses.

Changes in industry also effect our business , new technology ramp up in the industry
world and make well-known in the market, for us in order to let people know our
products and become trends to the consumers, We can definitely used now technology to
provide the needs in market.
 Kabuling Learning Center, Inc.
Daguma, Bagumbayan, Sultan Kudarat

Chapter 5
Strategy and Implementation

Promotion

We will promote our products to the costumer by showing the unique features of our
products. We used sales talk to at track them. We want to make sure to the costumers that
they are truly important and they are the bloodline of our business. We offer to the
market our advantage to other competitors that our products are good. Quality denim
product durable and long term used kind of product. We always consider their
satisfaction to meet their standard choosing our product.

Through social media, we can use this also to promote our products we can post on
Facebook to sell our product or other business sites so that the costumers can easily
locate our product offered. Our team member in the company and friends outside can also
share to promote our business product.

The image that we want to project by showing to the costumer on how to put value in
used denim clothes and turn into responsibility and unique denim products and save or
environment in the project of organization of clean and green environment we will build
our product in this image around the name of Amie denim bags that consistent in
producing denim bags product and services that have high-quality through recycling our
raw materials.

Promotional budget

To establish and maintain the profitable business, we put a capital of P155.00 pesos each
product to produced using handicraft process. The advantages we have in other
competitors is that our product is flexible and durable for long term used with a low cost
price and can click with unisex design bags than other competitors Purchas in the market.

Yes, we have different methods to promote our products, we can also use advertising in
social media, if ever the customer purchase more we give discount for the wholesale
 Kabuling Learning Center, Inc.
Daguma, Bagumbayan, Sultan Kudarat

price. In addition to promote our product would be our team stay in contact to respond
the inquires of each customers in social media. But to monitor the taste of every customer
in choosing the product and the price in the market especially in competitors, so that we
can lean to them and stay in high as a leading product in the area.

Yes, we considered already our competitors nearby in the area. Our price is much lower
and the quality we offer are good as other competitors produced we can also use new
technology such sewing machine to produced good and unique product and our brands
name will be known in the nearby place. Our credit policy will be cash to cash basis in
purchasing our product in the store. In online selling we can cash on cash dealing
process.

Proposed Location

The location is important, our store located at Isulan, so that the customer easy to locate
it. It helps our business to display our products and organize way to attract and the
customer will not loss finding our location by putting sign bound on the way toward our
store in Isulan.

The competitors we have in Isulan is NOVO, MGM, SKY, Isulan Central Plaza and B-
walk selling matching as products. It is good that we put our location in store in putting a
store nearby them, so that the customers can compared the product and the pricing cost
which have a low cost product with high quality denim bag. Through social media the
customer also locates our product and enhances those photos in unique and attractive in
the eye of customers.

Distributional Channel

We could be selling our product in physically or one to one basis in store. Online selling
this could help our product faster to distribute in online chain method. We bazaar our
product at KLC and the customers will be the students inside the campus and the teacher.
Also we can post on social media so that our friends in other school will able to see our
product. We are responsible in doing this and bring our product to the market.
 Kabuling Learning Center, Inc.
Daguma, Bagumbayan, Sultan Kudarat

Chapter 7
Financial plan and projection
Projected Cash Flow Statement
Table 1.2

Pre-operation Year 1 Year 2

Cash Inflows

Investment 500,000.00

Sales

Back pack 27,000.00 30,000.00

Sling bag 15,000.00 18,000.00

Pouches 9,000.00 12,000.00

Coin purse 6,000.00 9,000.00

Total Cash Inflows 500,000.00 57,000.00 69,000.00

Cash Outflows

Cost of sales

Back pack 10,000.00 13,000.00

Sling bag 6,000.00 7,500.00

Pouches 5,000.00 6,000.00

Coin purse 3,000.00 4,000.00

Equipment 20,000.00

Advertisement Exp. 500.00 1,000.00 1,500.00

Total Cash Outflows 20,500.00 25,000.00 32,000.00

Net Cash Flows 479,500.00 32,000.00 37,000.00

 Kabuling Learning Center, Inc.
Daguma, Bagumbayan, Sultan Kudarat

Add: Cash Beginning 479,500.00 511,500.00

Bal.

Cash Ending 479,500.00 511,500.00 548,500.00