CORAL FLEUR SUNSCREEN

Submitted by:

Baasis John Pio

Carreon Christian Jacob

Ocampo Erika Louise

Singson Gerard Levi

Tinsay Andrea Mae

December 3 2019
EXECUTIVE

SUMMARY
 Fleur De Coral sunscreen is a brand of sunscreen that compare to the other sunscreen is more

environmentally friendly to our ocean, more specifically the coral reefs. The Fleur De Coral

sunscreen has certain ingredients that does not harm the coral reefs, other sunscreen brands have

these ingredients which are dangerous for our coral reefs. For the first year of business it is

expected that the demand for the Fleur De Coral sunscreen will be 13,440. The admin will be

able to only supply 2,425 sunscreens. The competitors for the Fleur De Coral are the following

brands: Nivea, Celeteque, and Neutragena. The marketing strategy that the admins are planning

to execute are direct selling, and internet marketing for these strategies are cheap and at the same

time very effective to use.

The sunscreen is made of natural ingredients which are; coconut oil, beeswax, carrot extract

and the non-nano zinc oxide which is so much safer than any chemicals found in other

sunscreens. The Non-nano oxide cannot penetrate to your skin. Therefore, it cannot enter the

bloodstream. It also can easily absorb to your skin and this chemical is much safer to coral reefs.

We only offer 100 ml bottle of sunscreen. We don’t need a worker/employee in the first year

that’s why we decided not to hire one instead we the admins are the one who will work with the

production and packaging. The materials that we used to create a nice sunscreen lotion are the

four ingredients which are coconut oil (250 ml) that cost ₱ 144.75, beeswax (100 g) that cost

₱190, carrot extract (150 ml) that cost 470 and the non-nano zinc oxide (100 g) that cost ₱ 90.

We also need 100 ml bottle and the 8.27 x 11.69 logo sticker for the whole package. The total of

all of that is 912 but that is not only for one product. The company will be located at 3789 Aster

Road Corner Daffodil, Brgy. Sunvalley, Parañaque City. The owner of this is one of the admin.

We chose this location mainly because it has many rooms and the other rooms are wide and very

spacious, completely perfect place for us to work with.

 The type of business that the admins decided to form is partnership mainly because it is far

easier to build compared to a corporate type of business. John Pio Baasis will be the president of

the business, Tinsay Andrea Mae will be the production manager, Ocampo Erika Louise will be

the marketing manager, Singson Gerard Levi will be the finance manager, and Carreon Christian

Jacob will be the human resource manager.

The company will have a net income of P24,124.27 for the first year, 43,095.72 for the

second year and P133,264.12 for the third year. The return of the investment of the admins will

be within a year and a quarter.

MARKETING

PLAN
Section 2: Marketing Plan

I. Product to sell

Fleur de Coral Sunscreen is a sunscreen made for the people who often go to beaches and

resorts and it is capable to protect you from the UV Rays and at the same time do no harm to the

corals. It has special ingredients that are proven safe to the corals such as carrot extract, coconut

oil and many other more. One factor on why coral reefs are dying are due to the sunscreen

products that we use, there are certain ingredients in a branded sunscreen that can damage the

coral reefs which is why we want to produce this type of product, given that we are an

archipelago country it adds more reason on why this product is beneficial for the environment.

II. Target Market

1. Area Coverage – The location we are targeting to be our market is Vitalis Villas,

Santiago Ilocos Sur. More specifically White Sands Beach resort.

2. Consumer – The consumers of Fleur de Coral Sunscreen consists of people who are

customers of the White Sands Beach resort, male and female, there are no age limits.
III. Demand and Supply Analysis

Year Demand Supply Demand Percentage

supply gap Shared of

Unfilled

Demand
2019 13,440 2,425 11,015 82%
2020 13,690 3,038 10,652 78%
2021 13,940 4,425 9,515 68%
2022 14,190 7,225 6,965 49%

IV. Supplier Competition

Competitors Market Share Target Market

Nivea 59% 6%
Celeteque 12% 0%

Neutragena 29% 6%
Coral Fleur 88%

V. Projected Sales
 For our projected sale we are expected to hit a 80,000 pesos sale in our first month given the

demand that we have and our share from other brand competitors. Our business started running

on the month of October. Month 2 and 3 are expected to lower down the sale because it is

Christmas season during that time, on the other hand the Month of March, April, and May is

expected to increase our sales because it is summer season during that time and of course many

people will be going to the beaches.

VI. Marketing Strategies

A. Practices of Competitors

Nivea

Nivea has a very large and strong distribution channel. It makes their products visible to

customers. It’s products can be bought online but the main channel of selling is the retail outlets.

They have tons of outlets in different places of the country. Two-thirds of their sales happen

through the outlets. Nivea also uses various promotional techniques to attract customers. They do
tv advertisements, trade fairs and promotional events. They also have an online magazine named

FYI — Fun, Young and Independent. They also have a social media presence especially in

Facebook.

Neutragena

The company likes to partnering with organizations like doctor's facilities and lavish inns and

also with many e-commerce websites to make its products available to consumers. In addition, It

utilizes indirect mediums like grocery stores, shopping centers, and departmental stores to sell its

products. In promoting their product, Neutrogena also uses TV advertisements, bulletins,

magazines and verbal promoting which is an announcement in itself. Neutrogena has constructed

a few insightful and appealing ads by taking in circumstances from reality to connect better with

the youthful population.

Celeteque

Celeteque is known for their skincare products. Just like the other brands they introduced their

products through Tv advertisements, ads on Facebook, Instagram and YouTube to show their

products. In addition, they give examples of their products and verbally promoting it to people

especially women. Since women are more aware of their skin care and more focus on looking

great.

B. Own Marketing Strategy

The marketing strategy we are planning to use are Direct selling and Internet Marketing. We

have chosen these two strategies for in our opinion these are the easiest and cheapest yet

effective strategy to promote and make the product known. Also our product is something that

deals with environmental issue so more likely it is much more easier to sell.
 For Internet Marketing we're planning to target the advertisement to the people in Ilocos and at

the same time the people in Metro Manila because they are the ones who are more often going to

the beaches and resorts.

VII. Marketing Expenses

Facebook Advertisements 2,000 pesos

Flyers 8.5in x 11in (100 pcs) 1,175 pesos
Tarpaulin 4x8 (2pcs) 960 pesos
Total: 4,130 pesos

For our Marketing Expenses we chose to invest in Facebook Advertisement, flyers, and

tarpaulin. For the Facebook advertisement we chose to spend 100 pesos per weekday to run the

advertisement for one month . For our Flyers we are printing a 8.5in x 11in Flyer and it is 100

pcs in the package. Lastly we are printing a 4x8 tarpaulin (2pcs) which is 960 pesos. We

consider these materials effective strategies to promote our product because we will be able to

cover the areas near the beach resort via Flyers. Also people will be able to see our product

through Facebook advertisement.

 OPERATION

PLAN

Section 3: Operation Plan

I. Production Description
 The Coral Fleur sunscreen contains 100ml Coconut oil, 143g of Zinc Oxide, 29.57ml per

carrot extract, 14.3g beeswax. Compared to the other general brands of sunscreen lotions the

coral fluer sunscreen lotion does not Oxybenzone and Octinoxate, these components harm the

coral reefs.

II. Operation Process

a. Step – by – step Procedures

1.Put the coconut oil and Carrot Extract in a medium bowl and mix it all together by stirring it.

2. Put the two ingredients in the pan after you mix and turn on the stove in a medium heat.

3. Put the 3 tablespoon of beeswax in the pan.

4. Stir the ingredients occasionally in the bowl as they start to melt.

5. When the mix is completely melted, turn off the heat and stir in the powders. Cover your

mouth with a mask or your shirt as you work with the zinc to avoid inhaling the fine particles.

6. Mix evenly and then pour into the 100ml bottle

III. Labor Requirement

For the second year of business we have decided to only hire one factory worker and the rest

of the team will work on the production and packaging.

Requirements:

- 20 years old and above

 - Does not require school diploma

- Patient and Hardworking

- Willing to work for 6 hours per day

III. Production Schedule

a. Minute Schedule

STEP 1 10 Minutes
STEP 2 7 Minutes
STEP 3 5 Minutes
STEP 4 10 minutes
STEP 5 20 minutes
STEP 6 20 minutes
TOTAL 1 hour and 12 minutes

IV. Machinery Requirement

The materials we are going to use to create the sunscreen lotion are Butane gas stove and

Butane gas, more specifically the brand of the butane gas and stove we are going to choose is

Bounce, and the size of the Bounce Butane gas will be 8 ounce. These materials are necessary

for the production of the product for it will serve as the one that will heat the substances and mix

it all together to form the sunscreen lotion. Compared to the gas tank, the hassle of getting a gas

tank is eradicated and it is much more cheaper. A normal gas tank would cost 500 pesos per

month on the other hand Butane gas would cost 88 pesos per 2 week.

V. Raw Materials Requirements

 For the materials, the company has searched for natural ingredients to be used for the product.

We have a main supplier that will provide enough materials. Our company ensured that every

ingredient is in its best quality and safe to use and affordable.

Key Materials Supplier Price

Beeswax White TheInspiredAlchemist on Shopee P190 / 100g
Non-nano zinc oxide RawEssentialsPH on Shopee P90 / 100g
Carrot Extract PurpleButterflyShop on Shopee P470 / 150mL
Coconut Oil SM Market P144.75 / 250mL
100mL packaging A_drifter19 on Shopee P13
Logo Sticker De Leon Family P5
TOTAL: P912.75

VI. Factory Location

3789 Aster Road Corner Daffodil,Brgy.Sunvalley,Parañaque City

 This location was chosen mainly because the factory is wide, very spacious and has many

rooms. The materials needed for office or production can be accesible and easy to find since the

factory is near a mall. The factory is easy to find and can accomodate a lot of people very well.

The factory is owned by one of the head of the business.

VII. Factory Layout

 For the layout of the office we have assign five (5) rooms with each room having their

own purpose. The room designation are the following; shipping area, office, raw materials

storage, finished product storage,and processing area.

VIII. Quality Control System

To ensure the credibility and legitimacy of our product and to make sure that it is effective

and it is safe we will assign one of our core members to be the quality ensurance officer.

What that person will do is that he or she will maintain the right amount of proportion of

each ingredients. The officer shall also ensure that the utensils used for the mixing of the

ingredients are safe and ready to use. The officer shall also ensure that the ingredients are

stored properly in a specific place in the factory. Lastly once the ingredients are finished, to

make sure that it will be effective we will get a portion of the liquid substance and put it in

the skin to know that it absorbs quickly.

IX. Production Cost

A. Total production per year

 Materials Price
1 Bounce Butane Gas Stove ₱819.75
24 Bounce Butane Gas (₱74.75 each) ₱1,794
1 Stainless Steel 20cm Sauce pan ₱4,000
1 Stainless Steel Mixing Bowl with ₱245

Ergonomic Non-Slip Silicone Base

Kitchenware
Slip Silicone Base Kitchenware ₱245
2 Stirring rod ₱52
1 set of Stainless Steel Measuring ₱255

spoons
24 Plastic funnel (₱ 36 each) ₱864
TOTAL ₱5,274.75

For the production cost per year, we have gathered all the materials we need to make our

product. As seen in the table, we will be buying a bounce butane gas stove that costs P819.75, 24

pieces of 8oz bounce gas that costs P74.75 each, 1 stainless steel 20cm pan that costs P5000, 1

stainless steel mixing bowl that costs P245, 2 stirring rods that cost P52 each, 1 set of stainless

steel measuring spoons that cost P255 and 24 pieces of plastic funnel that costs P864. For the

funnel, we decided to change it every twice a month for hygienic purposes. Calculating the total,

we have a production cost of P5,274.75 for the whole year.

B. Total Production per 500ml Unit

Material Price
Beeswax 100g ₱190
Carrot Extract 150 ml ₱470
Non-nano Zinc Oxide 100g ₱90
Coconut Oil 500 ml ₱289.5
Bottle 100 ml (size) ₱65
Sticker 8.27 x 11.69 inches A4 ₱25
TOTAL ₱1,129
 In order to create a 500ml sunscreen lotion, the following ingredients must be gathered such

as 100g Beeswax, 159ml carrot extract, 100gNon-nano Zinc Oxide, 500ml Coconut oil, 100ml

bottle, and a sticker, overall the total expense for production per 500ml will be ₱1129.

ORGANIZATIONAL
 PLAN

Section 4: Organizational Plan

I. Legal form of business

The type of business that we chose is partnership because it is formed by the agreement of

two or more individuals to sustain a business as co-owners. Each person has a share on the

profits. Moreover, it is a type of business that is easy to build compared to a corporate type of

business

II. Organization Structure

PRESIDENT
Baasis, John Pio

PRODUCTION
MANAGER
Tinsay, Andrea Mae
 MARKETING FINANCE HUMAN
MANAGER MANAGER RESOURCES
Ocampo, Erika Singson, Gerard Levi Carreon, Christian
Louise

STAFF

The President is Baasis, John Pio. He will be the leader for the whole partnership. The

Production Manager is Tinsay, Andrea Mae. We will be hiring one person in helping us to

produce the product. The Marketing will be handled by Ocampo, Erika. She will be the one to

make sure that the product will reach the target market. The finance will be handled by Singson,

Gerard Levi.

He will be the one managing the money and the flow of the cash in the business. Lastly, the

Human Resources will be handled by Carreon, Christian Jacob. He will be the one who hires a

good employee that is fit for the business.

III. Qualification of Officers

PRESIDENT

Good Communicator

Honesty and Integrity

Decision making capabilities

 Accountability

Has attained a educational degree related to business

The qualities of a President that we qualify are the following; he needs to be a good

communicator when it comes to presenting ideas to his fellow members, he needs to be truthful

and to have a sense of integrity, building up lies and false statements is one of the major factors

that corrupts a business, he needs to have a good decision making capabilities especially in

crucial situations, to be able to make logical and good decisions is something very important a

president must have, he also needs to have accountability, when failure is present in the business

or a project failed, someone needs to be willing to be accountable for the situations and bring

back the flow of the business, lastly a educational degree related to business is important

because, someone who studied the foundation of putting up a business is more valuable than

someone who is just skilled.

MARKETING MANAGER

Tech-Savvy
Skilled with online marketing
Has attained an educational degree related to

business

The main quality that we require our marketing manager to have is to be technology

competent, because technology is a very effective tool to market products, also an educational
degree in a business related course is required because the basic principles and foundation in

business is essential when operating a business

PRODUCTION MANAGER

Excellent communicating skills

Observant

Organizational skills

Has attained an educational degree related to business

The skills we require our production manager to have is to be an excellent communicator, to

be observant, and to be organized as much as possible, we consider these skills to be a

requirement because a production manager is someone who is going to overlook the production

of the products, and it would be very crucial and helpful for the business if the whole production

will be organize and functioning as one unit.

FINANCIAL MANAGER

Analytical skills

Problem solver

Organizational skills
Has attained an educational degree related to business

and finance
 The main qualities that we require our financial manager to have is to analytic and a problem

solver, if these skills are honed well, the business will thrive and improve drastically, finding

ways for better financial decisions and improving the financial status of the company can be

acquired if the person behind the financial decision is able to notice the problem of a company

financially and make a wise decision out of it. Lastly, an educational attainment related to

business and finance is also required, having the foundation and knowledge in business and

finance is essential and beneficial both for the company and for the person.

HUMAN RESOURCE MANAGER

Strong sense of ethics

Strong communicational skills

Conflict management skills

Has attained an educational degree in human resource

management.

The qualities that we require for our human resource manager to have is to be a strong

communicator, to have conflict management skills, to have a strong sense of ethics, these skills

are essential for a person who is going to handle and train the employees to be a better person in

the workplace, also, an educational degree in human resource management is very helpful for the

person in position because he/she will have the foundation and knowledge on how to do his/her

job.

IV. GANTT CHART

Week 1 2 3 4 5 6 7 8 9 10
 Acts
Office Location
Office Equipment
Settling in the location
Register Business
Operation Start of Business onwards

We allotted our first week in finding a place suitable for us to work in. After looking for

our office location, we allotted 2 weeks in looking and buying our necessary office equipment as

well as assembling our equipment in our office. Then we started settling in the location and

allotted 1 week for the fixing of equipment in the office. After that we applied for all the

necessary requirements in starting up a business, which includes the license of our business as

well as the business permit. Overall, we allotted 7 weeks for the preparation of the backbone of

the business. After finishing all these tasks, the business can finally start in the 8th week.

V. Office Equipment

Equipment Price
(1) laptop ₱12,000
(1) One long wooden table ₱2,188
(5) Five chairs ₱2,500
(2) two Whiteboard Marker ₱50
(1) One Eraser ₱34
(2) Two LED lights ₱180
(2) Two electric fans ₱1,600
(1) One Trashcan ₱200
(1) Calculator ₱149
(1) One Printer ₱1,690
(1) One Pack of A4 paper ₱156.50
 (7) Seven pens ₱105
(2) Two Bucket ₱90
(2) Water container ₱240
(5) Five soap ₱150
(1) One Fire Extinguisher (3 pounds) ₱899
(1) One Whiteboard ₱340

TOTAL ₱22,571.50

VI. SALES GENERAL, ADMINISTRATIVE EXPENSES (per year)

Salaries of admin: Expenses

President P54,000.00
Production Manager P54,000.00
Marketing Manager P54,000.00
Financing Manager P54,000.00
Human Resources Manager P54,000.00
Office & Supplies P22,571.5
Rent P60,000
Water P7,200
Electricity P18,000
TOTAL: P377,771.5

Each manager will be earning P4,500 per month, so that in a year, we have P270,000 as

our annual income. We will also investing be using P22,571.5 pesos for our office supplies

which will be a necessity for our business. We will also be paying for the utilities like water,

electricity and most especially, rent for the location of the business. All in all, the admins have

invested P377,771.5 in the first year.

 INCOME

STATEMENT
 I. Assumptions

MARKETING PLAN

 We assumed that in our first year, the demand of the product will be 13,440
 For our marketing expenses, we are assuming that we will be spending P4,130.
 We are assuming that we will be supplying 2425 sunscreen
 In our first month we are expecting to hit a 80,000 sales

OPERATIONAL PLAN

 For our first year of business we are not going to hire any laborers
 For the production of a product, it is assumed that it will take 1 hour and 12 minutes.
 It is assumed that P912.75 pesos will be spent on the raw materials and for the creation of
5 pieces
 It is assumed that P1,129 pesos will be spent on the production of these sunscreens

ORGANIZATIONAL PLAN

 It is assumed that the type of business will be partnership

 It is assumed that it will take 8 weeks until the start of the operation of the business
 The wage of the managers and the president will be P4,500 per month
 It is assumed that P85,200 will be spent on utilities
 II. Income Statement

INCOME STATEMENT

(End of first year 2019 – 2020)

SALES P970,000
COST OF GOOD SOLD P646,339.75
GROSS INCOME P323,660.25
OPERATING EXPENSES
ADVERTISING EXPENSES P4,130
OFFICE SUPPLIES EXPENSES P22,571.5
SALARIES P270,000
TOTAL OPERATING EXPENSES P296,701.50

GROSS INCOME P323,660.25

TOTAL OPERATING EXPENSES P296,701.5

OPERATING INCOME P26,804.75

TAX P2,695.88
NET INCOME P24,262.87

The sunscreen that our business will produce for the first year will be 2,425 sunscreen bottles

and it will be sold for a price of P400, if all bottles are sold, we will gain a total of P970,000

sales.
 The equipment that we will be using has a cost of P9,274.75, the ingredients we will be using

to produce 2,425 bottles will cost P547,565 and the utilities for our business will cost P93,500.

Overall, the cost of goods sold will be P323,600.25. The gross income of our first year will be

P323,660.25

We will be spending P4,130 for advertising, P22,726.5 will be put for the office supplies, and

for the salary, each admin will earn P4500 per month and there will be no laborers for the first

year of business. Overall, the total operating expenses will be P299,732.5

The operating income will be P26,804.75. The tax deduction will be 10%. Overall, the net

income will be P24,124.27

 INCOME STATEMENT

(End of second year 2020 – 2021)

SALES P1,215 200

COST OF GOOD SOLD P784,755.15
GROSS INCOME P430,444.85
OPERATING EXPENSES
ADVERTISING EXPENSES P1587.5
OFFICE SUPPLIES EXPENSES P156.5
SALARIES P330,000
SALARY OF LABORER P48,000
TOTAL OPERATING EXPENSES P379,744

GROSS INCOME P430,444.85

TOTAL OPERATING EXPENSES P379,744

OPERATING INCOME P50,700.85
TAX P7,605.13
NET INCOME P43,095.72

The sunscreen that our business will produce for the second year will be 3,038 sunscreen

bottles and it will be sold for a price of P400, if all bottles are sold, we will gain a total of

P1,215,200 sales.

The equipment that we will be using has a cost of P5,274.75, the ingredients we will be using

to produce 3,038 bottles will cost P685,980.4 and the utilities for our business will cost P93,500.

Overall, the cost of goods sold will be P784,755.15. The gross income of our second year will be

P430,444.85

We will be spending P1,587.5 for advertising, P156.5 will be put for the office supplies, and

for the salary, each admin will earn P5,500 per month and there will be one laborer for the
second year of business, they will be earning P4,000 per month. Overall, the total operating

expenses will be P379,744

The operating income will be P50,700.85. The tax deduction will be 15%. Overall, the net

income will be P43,095.72.

INCOME STATEMENT

(End of third year 2021 – 2022)

SALES P1,880,625
COST OF GOOD SOLD P1,101,939.5
GROSS INCOME P778,685.5
OPERATING EXPENSES
 ADVERTISING EXPENSES P1000
OFFICE SUPPLIES EXPENSES P12,000
SALARIES P480,000
SALARY OF LABORERS P108,000
TOTAL OPERATING EXPENSES P601,000

GROSS INCOME P778,685.5

TOTAL OPERATING EXPENSES P626,747.5
OPERATING INCOME P177,685.5
TAX P44,421.38
NET INCOME P133,264.12

The sunscreen that our business will produce for the third year will be 4,425 sunscreen

bottles and it will be sold for a price of P425, if all bottles are sold, we will gain a total of

P1,880,625 sales.

The equipment that we will be using has a cost of P9,274.5, the ingredients we will be using

to produce 4,425 bottles will cost P999,165 and the utilities for our business will cost P93,500.

Overall, the cost of goods sold will be P1,101,939.5. The gross income of our third year will be

P778,685.5

We will be spending P1,000 for advertising, 12,000 will be put for the office supplies, and for

the salary, each admin will earn P8,000 per month and there will be two laborer for the second

year of business, they will be earning P4,500 per month. Overall, the total operating expenses

will be P601,000

The operating income will be P177,685.5The tax deduction will be 25%. Overall, the net

income will be P133,264.12