Project Feasibility Study on Manufacturing

“Soapure”
An organic duo flavors soap from vegetable and fruit extracts for
teenagers in Sta. Rosa, Nueva Ecija

___________________

A FEASIBILITY STUDY
Presented to the College of Management and Accountancy
PHINMA Araullo University

___________________

In Partial Fulfillment of the Requirements for the Degree

BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION-
MARKETING MANAGEMENT

___________________

By:
Ryan R. Alfanta
Ana Marie C. Antonino
Catherine Balae
Jolina Belen
Jecel Capinpin
Riegene Clemente
Pauline Dela Cruz
Maricel Domingo
Jerico P. Espiritu
Richelle Lacanlalay
Lloyd Padilla
Mayra M. Salcedo
Diane Elaine Sta. Cruz
Jenalyn Sudlon
Kimberlyn Tumibay

3MKTMGT-A1-South

S.Y. 2021
 Chapter I
INTRODUCTION AND BACKGROUND OF THE STUDY

This chapter includes a short explanation of why

the subject matter for a feasibility study was chosen. The

statement of the problems will be presented. The objectives

of the study are also discussed. As well as the significance

of the study, it also includes the operational definition of

term used in the study.

Introduction

Most people actively try to minimize the amount of

toxins that enter their body. They eat good food, drink

purified water, breathe purified air, and some even take added

measures to detoxify their body. However, what many people

don't realize is that toxins can be absorbed through their

skin. No time is this more important than when deciding what

kind of soap to use. Given the industrious process used to

produce many of the commonly known soaps, it's not a

surprise that most contain questionable chemicals, dyes, and

fragrances which are questionable substances that many of us

would be better off avoiding. To minimize the "casual

toxins" that are exposed to one should consider using

organic soap.

Soap is one of the most commonly used commodities in

everyday endeavors. It has been produced in different forms

– liquid, powder, and bar with different colors, sizes,

textures, and quality. The most popular use of soap is in

the household for various purposes such as washing, bathing.

Out of this bathing can be considered the most essential use

of soap and so it is important to know the harm that can be

caused by the use of regular commercial soaps and hence the

significance of the use of organic products. By using organic

soaps as an alternative or replacement to your regular soaps

which contain chemicals that can harm our skin, people can

avoid, or at least reduce the risk of having skin problems.

Organic soaps are made up of ingredients that are

either found in nature (natural) or derived from living

organisms (organic), mainly plants. It is simply better for

our skin. It contains natural ingredients such as plant-

derived base oils, glycerin, and essential oils. It also

helps to improve skin conditions such as eczema and acne,

rather than producing further irritation. Organic soaps also

help to moisturize and cleanse our skin naturally and its

richness in antioxidants can help the skin repair itself by

reducing inflammation and keeping our skin looking younger

and fresh.

Natural ingredients have been used for centuries for

skincare purposes. At present, they are becoming more

prevalent in formulations, due to customers' concerns about

synthetic ingredients/chemical substances. This will serve

as an evaluation of the factors to consider in entering into

soap production as a business enterprise in answer to the

rising demand for environment-friendly products.

1.1 The Proposed Project

The project named the business "Soapure” A natural duo

flavors soap from vegetable

and fruit extracts for

teenagers in Sta. Rosa

Nueva Ecija.

Figure 1

The logo of the business

The proponent used the word Soapure because the soap is

made out of purely natural ingredients which is the

vegetable and fruit extract making it an organic soap. In

the logo, it can be seen the vegetable and fruits that

represent where would be the soap made. This can help the

customers an idea when they saw the logo of the business.

Foreign Related Literature

Global Organic Soap Market Size & Share, Recent Trends, Key

Applications, Growth Analysis, and Industry Forecast till

2028

The report presents the primary and secondary factors

that are impacting the market growth positively or

negatively. Recent ongoing trends and opportunities have

also been added in the report to offer a forecast in terms

of product demand and adoption at the global level. The

report is inclusive of information about top prominent

players in the global market such as revenue details,

operating segments, and segment revenue, contact details,

geographical presence, net profits, operating expenses, etc.

It also includes key developments, recent product launches,

technological advancements, and other company news related

to the target market. To present an informative analysis of

the global organic soap market, the prepared report has been

divided based on product type, distribution channel, and

region/ country.
 Organic soaps have certain healing properties that help

to improve skin conditions such as acne and eczema, among

other severe skin conditions. These soap bars have various

properties such as they contain antioxidants, no chemicals

or pesticides, natural antibacterial qualities, generally

cruelty-free and environment-friendly, etc. Conventional

soaps, on the other hand, are known to contain hazardous

ingredients, questionable chemicals, and lathering agents

that are harmful in the long run and may result in rashes

and dry and flaky skin.

Dynamics: Global Organic Soap Market- Growing demand

and adoption rate of natural and organic skincare products

among consumers is a key factor projected to drive the

growth of the global organic soap market in the years to

come. In addition, rising consumer awareness regarding the

benefits of organic soaps over conventional soaps, an

increasing number of celebrities that are endorsing organic

soaps, and inclining per capita income are factors projected

to drive global organic soap market growth in the upcoming

years. Moreover, shifting preference towards eco-friendly

lifestyles, rapid urbanization, and increasing adoption of

expensive premium organic soaps owing to their benefits

across the globe are projected to propel the market growth

during the next few years.

Segment Analysis: Organic Soap Market

By Product Type Analysis: Among the organic soap

product type segments, the bar soap segment is projected to

grow at a notable CAGR in the global market in the 10-year

forecast period. The liquid soap segment is anticipated to

grow at a substantial CAGR in the next 10 years.

By Distribution Channel Analysis: Among the

distribution channel segments, the supermarket/ hypermarket

segment recorded a major revenue share in the global market

in 2018 and is anticipated to continue to dominate for the

next few years. The online retail segment is projected to

witness a significant growth rate in the coming years.

Growing preference for online shopping among individuals in

developing countries is anticipated to support the growth of

the segment over the long run.

Global Organic Soap Market: Region Analysis: North

America organic soap is projected to account for major

revenue share and is projected to continue its dominance in

the next few years. Increasing demand for organic soap

products in the US and Canada owing to the high spending

power of individuals is projected to support the growth of

the North American organic soap market in the next few

 years. In addition, the presence of major organic

manufacturers increasing merger and acquisition activities

in the region is projected to drive the growth of the North

American market.

Global Organic Soap Market Segmentation:

Segmentation by product type:         

 Bar Soap

 Liquid Soap

 Paper Soap

Segmentation by distribution channel:         

 Supermarkets/ Hypermarkets

 Specialty Stores

 Online Retailers

 Others

Source:https://marketresearch.biz/report/organic-soap-market/?
fbclid=IwAR0CV15uUCLGbXijGNvGQD_svrZdS5uBrZwxULZYUdCEH-D7L8DysH9HPOU

Local Related Literature

J&D Organic soap By: Jeneva D. Cruz and Demilu Christine Gallardo

This report study serves to know the viability of

starting a small scale business of organic soap making in

order to utilize the benefits of a nearly all-natural

product that can be acquired from easily sustainable

resources - organic ingredients which are grown without

chemicals both that can pollute the water supply, air, and

soil. Most organic soaps are cruelty-free, meaning they’re

not tested on animals. Purchasing natural and organic

products is better for the environment as well as for human

welfare.

Product Description - The final product of the project is an

organic face and body bar soap and beauty soap made from

organic ingredients. These two products are meant for both

domestic and industrial uses.

Market Assessment

Size of the market: Community based (subdivision and

villages)

Target sales volume: 1,000

Production volume: 1,000

Target market: Community (especially women and teens), and

online shoppers

Market segmentation according to: age, gender, income level,

frequency of purchase, and geographical location

Number of possible customers: 500,000

Major trends affecting the market: organic and environment-

friendly products demand

The growth rate of the market: 4%

Product change for improvement: future production of liquid

hand soap

Age, gender, and family income, lifestyle factors: Teens and

women of the middle class will most likely buy the product

Retail price: 300 PHP

Price factors: raw materials, size, and demand

Management Structure: This project is managed by the

business proprietors. Specialized management personnel with

experience would be provided to administer the business

while the bulk of labor will be provided by the community.

In order to avoid conflict in areas of employment,

management of funds and operations, a memorandum of

understanding shall be issued.

Source:https://www.academia.edu/26225524/A_Feasibility_Study_In_Partial_

Fulfillment_of_the_Requirements_for_Practicum?fbclid=IwAR2zoM-

8lgiAtWzFH34mJPv2Bq2mErO9ahske6dIaF9hdjbxfZE_uNP_L38

Local Related Literature

Tivona Organic Soap By: Arvin Acuña Manilyn Eulogio Angelie

Hernandez Ann Camille JoaquinMary, Josel Ordan, Claudine

Quizon and Eymard Siojo, October 2014

The name “Tivona Organic Soap" represents a brand in

the skincare industry. "Tivona” came from a Hebrew word

meaning “Love’s Nature”. It directly reflects intention in

providing 100% organic soaps.

Business Address: The proponents will have a small

factory and a store located at #220 Partida, Norzagaray,

Bulacan. The majority of the raw materials are organic, thus

the ingredients should be fresh and free from any kind of

toxins and Bulacan is a good place because of its unpolluted

environment, inexpensive production materials, and labor.

Nature of Business: The nature of business is under DG

Manufacture Chemicals, Prods, and Man-Made that fall in the

category of Manufacture soap and detergents, polishes, etc.

It is also under Retail sale via stalls and markets.

Statement of Financing Need: It is purely financed by

the sole proprietor. The capital will be used for the rental

of the place, advertisements, machinery and equipment, and

other overhead expenses.

Products: Guava Soap, Tomato Soap, Papaya Soap, Banana

Soap, Choco Scrub Soap, etc. Blemish Balm Tea Tree soap,

Lemon and Poppy Seed, Cinnamon, Milk, Carrot, etc. Cucumber,

Papaya, Sweet Pea, Milk, Green Tea, Oatmeal, Peppermint,

etc. Calamansi, Charcoal, Milk, Guava, etc. Product's Price:

Php 65.00Php 58.00Php 130.00Php 75.00

Market Segmentation: The Company segmented its market

according to the demographic segmentation. These

segmentation criteria, it is segmented the customer

according to: Age, Sex, Income, and Occupation.

Industry Forecast: Organic and herbal soap is just an

emerging market in the Philippines, known brands are mostly

concentrated with commercial soap and whitening soap. It is

very timely to enter the healthy competition in the market.

Source:https://www.scribd.com/document/243711897/BP-Herbal-Soap?
fbclid=IwAR2D7swxCi9eD8jgm6SuWlyiAm8CxibV1FskQYanSUs6SK9y_iVKQO9ZH_4

1.2 Conceptual Framework

The researchers used the system approach (Input-Output-

Process System) in describing the conceptual framework of

the study.

Figure 2

Conceptual Framework
 Figure 2 describes the conceptual framework of the

study wherein the input is consisting of the following:

Name, Age, and Gender of the respondents, it also includes

the Aspects which are the Marketing Aspect, Technical

Aspect, Management Aspect, Financial Aspect, and Socio-

cultural Aspect.

On the other side, the process being used is through

questionnaires and data analysis to determine the possible

outcome of the study. The output is the result of the input

and process.

1.3 STATEMENT OF THE PROBLEM

GENERAL PROBLEM

This study aims to determine the feasibility of

manufacturing “Soapure” an organic duo flavors soap from

vegetable and fruit extracts for teenagers in Sta. Rosa

Nueva Ecija. Specifically, this study seeks to answer the

following questions.

SPECIFIC PROBLEM

1.) How the feasibility of the Marketing Aspect of this study is

described in terms of:

a.) Market Description,

b.) Demand Analysis,

 c.) Supply Analysis,

d.) Demand and Supply Analysis,

e.) Competitive Position,

f.) Marketing Program,

g.) Projected Sales?

2.) How the feasibility of the Technical Aspect of this study

is described in terms of:

a) Product Description,

b) Manufacturing/Production Process,

c) Plant Size and Production Schedule,

d) Machinery,

e) Plant Location,

f) Plant Layout,

g) Building and other facilities,

h) Raw materials and supplies,

i) Utilities/Facilities,

j) Waste Disposal?

3.) How the feasibility of the Management Aspect of this

study be described in terms of:

a) Form of business organization,

b) Capitalization,

c) Organizational structure,

d) Personnel and manpower requirements,

e) Duties and responsibilities of personnel,

 f) Qualification standards of personnel,

g) Legal requirement,

h) Compensation package,

i) Company policies?

4.) How the feasibility of the Financial Aspect of this study

be described in terms of:

a) Total project cost/Capital requirement,

b) Sources of funds,

c) Terms and conditions of creditors,

d) Projected financial statements,

e) Schedules,

f) Financial analysis?

5.) How the feasibility of the Socio-Economic Aspect of

this study be described in terms of:

a) Internal and external Customers,

b) Government,

c) Community?

6.) How the Project Implementation and timetable of the

project be described?

Significance of the study

This research entitled "Project Feasibility Study on

Manufacturing “Soapure” an organic duo flavors soap from

vegetable and fruit extracts for teenagers in Sta. Rosa

Nueva Ecija" is beneficial to the following:

Customers - This product will be beneficial to a customer

who desires a soap with natural ingredients. It can also

give them a new product to try especially for those

teenagers and late adolescents who have sensitive skin and

prone to acne.

Prospective investors – the provided information in this

study will help them to know more about the cosmetic

industry and if they would be planning to invest in soap

making business and adopt its recommendations and procedures

into actual practice.

Government/Community- the proposed business, as it earns

profit will contribute income for the government too in

terms of taxes.

Researchers- the research studies' success will make the

researchers comply with their academic source of

requirement. It will also gain the additional knowledge and

experience that they could apply in real business.

Future Researchers- As for the future researchers, the ideas

presented in this study may be used as their reference data

in conducting their research that would be related to soap

making business.
1.5 SCOPE AND LIMITATION OF THE STUDY

This research is about Manufacturing “Soapure” An

organic duo flavors soap from vegetable and fruit extracts

for teenagers in Sta. Rosa Nueva Ecija" focuses on the

discussion of the important processes involved in its

establishment. This study focused on gathering data through

conducting survey questionnaires and personal interviews

within Sta. Rosa Nueva Ecija to measure the feasibility of

the “Soapure” an organic bar soap with natural ingredients.

The residents from Sta. Rosa Nueva Ecija specifically the

teenagers and early adults are considered to be the primary

target market for this type of business.

Definition of terms

Detoxify - to remove harmful chemicals from the body or

something

Toxins - a poisonous substance that is a specific product

of the metabolic activities of a living organism and is

usually very unstable, notably toxic when introduced into

the tissues, and typically capable of inducing antibody

formation

Organic - describes things that are natural or related to

nature. Noting or about a class of chemical compounds that

formerly comprised only those existing in or derived from

plants or animals.

Antioxidants - are substances that can prevent or slow

damage to cells caused by free radicals, unstable molecules

that the body produces as a reaction to environmental and

other pressures.

Flaky - coming off easily in small, flat, thin pieces

 CHAPTER II

METHODOLOGY

This chapter includes the research methodology that is

used by the researchers as their guide in making this study.

Population and sampling are shown in this chapter to

identify the target market as well as getting data from

them. It includes instrument and data analysis which were

used by the researchers in gathering their data and how they

analyzed it for showing the results of the study.

2.1 Research Design

We the researchers used a descriptive form of analysis

to accomplish the purpose of the study. Descriptive research

aims to define a population condition, phenomenon accurately

or systematically and it can answer questions about, what,

where which, and how but not questions about why.

To analyze one or more variables a descriptive research

design may use a wide variety of research methods.

For this analysis, descriptive Research was appropriate

because it sought to find new meaning, explain what

happened, evaluate the frequency of something, occurring,

and categorize knowledge.

2.2 Respondents of the Study

 Where:

η= sample size

N= estimated population

ɛ= margin error

The target respondents of

the study are the people who are residing at Sta. Rosa,

Nueva Ecija.

2.3 Locale of the Study

The study is conducted at Sta. Rosa Nueva Ecija.

2.4 Instruments Applied

The researchers used two classes of data, the primary

and secondary data

Primary data- was obtained through survey questionnaires,

observation, interviews, and test marketing

 Survey questionnaires - This study used survey

questionnaires to gather data in sta Rosa Nueva Ecija that was

needed in this study. This tool helps the researcher to gather

information about the following questions

 Interview- The researcher interviewed to gather all

information regarding establishing a proposed business

 Observation- The researcher used to observe the

production of organic soap through the Internet due to

restrictions because of the pandemic Covid-19

 Test marketing - the proponent conducted product

testing, sold old sample products in Sta rosa N.E.

Secondary data - was conducted from the internet, magazine,

books, and any other related studies about this proposed

business. These materials were generated from the records of

other successful soap companies.

2.5 Data Gathering Procedure

The researchers followed procedures and methods to

administer the instrument that was used in this study.

A letter of request to conduct the study was prepared.

The researchers constructed a questionnaire, validated by

the subject professor Mr. Jap Leonard E. Quinday, after the

approval the questionnaire was distributed. The researchers

research Santa Rosa Nueva Ecija through surveys. The

researcher designed a Google form together with asking

permission from the respondents. The researchers explain to

the respondents the importance of their response to the

study. The researchers clarify some terms to the respondents

so that the respondents can answer the questionnaire with

full knowledge of their responsibility for the study.

The Data gathered from this research instrument tallied

data for interpretation.

2.6 Tools used in Financial Analysis

ASSET TURNOVER

A. Assets Turnover

Sales

Total Assets

B. Fixed Assets Turnover

Sales

Total Assets
 PROFITABILITY RATIOS

A. Return on Investment

Net Income

Investment Cost

B. Return on Total Assets

Net Income

Average Total Assets

To whom it may concern,
The researchers respectfully request your kind
permission to answer the questionnaire concerning our
Business Planning and Research subject in studying the
Project Feasibility Study on Manufacturing “Soapure” an
organic duo flavors soap from vegetable and fruit extracts
for teenagers in Sta. Rosa Nueva Ecija. Your cooperation
will surely be appreciated. Thank you for your kind
consideration.

Respectfully yours,
Researchers

Survey Questionnaire

Name (Optional): _____________________________

Which category below includes your age?

18-20
21-25
26 and beyond

Gender: Male Female

Instruction: Shade/Check the box for the choice of your

answer.
1. Have you tried using an organic soap?
YES NO

2. Does it give you satisfaction with the result after using

it?
YES NO

3. How many times did you buy or try an organic soap?

1 to 2 times
3 to 4 times
5 times and above

4. What kind of organic soap this you used?

Papaya soap Calamansi soap
 Lemon soap Carrot soap
Tomato soap others:

5. If ever we create or manufacture an organic duo flavors

soap made from vegetable and fruit extracts in Sta. Rosa,
will you patronize it?
Yes No

COMMENTS AND SUGGESTIONS

From the choices and questions above, do you have any

comments and suggestions? If any, please write on the space
provided.