ACCESSOR- TIES: A Business Plan for Accessories Merchandise

Accessor- ties
Oriental Mindoro National High School, Calapan City, Oriental Mindoro 5200
(043) 288- 7698
0977- 441- 4138
accessorties@gmail.com

Proprietors:
de Guzman, Hyacinth Myrrah Ashley A.
Dagus, Cyrille Mae Nicole G.
Aguado, Juli Mari A.
Miranda, Ferinne Vhiven
Paringit, Jessica Mei
Austria, Arianne Mae D.
Huerta, Lorevie
Familara, Paulyn
Abelgas, Lois Christine G.
I. Executive Summary

Accessor- ties is a business organization that sells accessories for female students of
Oriental Mindoro National High School (OMNHS). This organization look forward to catch
the interest of a regular loyal customer based with its extensive variety of accessories.
Likewise, it plans to build a strong market position in the premises due to the mild
competitive climate in the area and aims to offer its products at a competitive price to meet
the demand of the senior high school students of OMNHS.

Accessor- ties will sell a combination of widely recognized accessories which aid
females like hair ties, bracelets, and earrings. It will closely follow generational fashion
trends as well as our own customers’ purchasing preferences. Solely focusing on the styles,
colors, and fondness of our consumers will be our specialty. The customers can have their
accessories customized if they would like to.

The target market of this business organization are female Senior High School
students of OMNHS ages 16- 19 who value uniqueness of design, quality of products,
convenience, and durability. As they are students who still depend on their parents, low and
realistic prices have become factors to consider when buying.

The institution is surrounded by several accessory stores like The Golden Arcade and
JDS Corporation. They have a variety of accessory choices offered at lower prices.

Accessor- ties will differentiate itself with the latest fashion trends for accessories.
Exhibiting a very feminine and elegant style, we will be set apart from overall brand images
of famous companies. As a newly established small store, it can often compete very
effectively with large ones by targeting their products at different customers with a price-
wise product.

To make the product marketable to the target customers, Accessorties, Inc. will
distribute some flyers before the date of implementation to introduce the product. This will
be easier for the customers to choose different designs or styles which are reasonably
priced. This organization will provide high- quality advertising materials like flyers, posters,
and brochures.
 This business organization will need 1000 Philippine Peso to get the business on the
ground. At this time, we have raised 1000 Philippine Peso through the contribution of each
entrepreneur. Each one of them contributed 111 Philippine Peso to start the business.

Weather conditions will have an impact on the popularity and sales of the products
to be sold. Hair ties will be popular during the sunny season which will be expected to be on
a higher demand in the market. Also, accessories for females like bracelet, necklace, and
earrings are always on demand and does not depend on any season. The quality of the
products will also affect the sales as well as its price.

II. Business Description

Accessor- ties is a business organization that sells accessories for female students of
Oriental Mindoro National High School (OMNHS). Accessor- ties look forward to catch the
interest of a regular loyal customer based with its extensive variety of accessories. This
business organization plans to build a strong market position in the premises due to the mild
competitive climate in the area. Accessor- ties aims to offer its products at a competitive
price to meet the demand of the senior high school students of OMNHS.

A. Mission Statement

Accessor- ties is a business organization that designs, makes and sells high-
quality and fashionable accessories which will offer an exceptional level of customer
service and personalized fashion recommendations tailored to the individual customer.
This business organization exists to attract and maintain customers through our unique
combination of designs, quality, and customer service and fashion recommendations.

Its mission is to understand the customer’s needs and to maintain financial

balance while delivering quality products to customers.
B. Vision Statement

Accessor- ties aims to be at the forefront of this specialist sector, operating an

ever evolving organization which provides great opportunities for both current and
future generations. This business organization will use innovation to broaden the
 products based far ahead of the competition, building on experience and trusted rapid
response service network.

C. Goals and Objectives

Accessor- ties intends to accomplish the following:
 Identify consumer trends to make consumers flock to the products.
 To remain a profitable business in which the revenues earned is more than the
cost incurred.
 To build and grow the trust of the consumers through distributing affordable
but high- quality products.
 To test new ideas to make the business organization innovative and fresh.
 Penetrate and raise awareness in 60 percent our targeted consumer market.
 Achieve a profit margin of 60 percent.
 Establish a solid reputation as quality retail establishment.
D. Product Description

Accessor- ties will sell a combination of widely recognized accessories which aid
females like hair ties, bracelets, and earrings. We will closely follow generational fashion
trends as well as our own customers’ purchasing preferences. Solely focusing on the
styles, colors, and fondness of our consumers will be our specialty. The customers can
have their accessories customized if they would like to.

These accessories will surely fit in the taste of the target market as they are
trendy, fashionable, and affordable.

III. Industry Analysis

A. Target Market and Consumer Demographics

The target markets of Accessor- ties are female Senior High School students of
Oriental Mindoro National High School ages 16- 19. They value uniqueness of design,
quality of products, convenience, and durability. As they are students who still depend
on their parents, low and realistic prices have become factors to consider when buying.
B. Major Competitors

The institution is surrounded by several accessory stores like The Golden Arcade
and JDS Corporation. They have a variety of accessory choices offered at lower prices.

C. SWOT Analysis
Here are the strengths of Accessor- ties:
1. Products of Accessor- ties are affordable and high- quality.
2. Founders have experience as entrepreneurs and can do the latest fashion trends
that could catch the interest of customers.
3. Customers will experience a unique shopping experience with the exceptional
customer service of Accessor- ties staffs.

Here are the weaknesses of Accessor- ties:

1. Founders have no practical experience in manufacturing accessories and managing a

business.

Here are the opportunities for Accessor- ties:

1. By starting out with accessories, Accessor- ties may increase the chances for
sustainable market success.
2. Outstanding service will lead to repeat business.
3. Many potential product lines for expansion.

Here are the threats for Accessor- ties:

1. Manufacturing of the products have a very high startup costs and liquidity risks.
2. The marketing of products of Accessor- ties to the customers should be effective.

D. Competitive Advantages

A big factor of the fashion industry is the competition. There will be a wide array of
competitors whose operations partially overlap with those of Accessor- ties. To each brand
of competitors, Accessor- ties will have the right answer to differentiate itself and perform
well in a competitive environment.
 Accessor- ties will differentiate itself with the latest fashion trends for accessories.
Exhibiting a very feminine and elegant style, Accessor- ties will be set apart from overall
brand images of famous companies. As a newly established small store, it can often
compete very effectively with large ones by targeting their products at different customers
with a price- wise product.

New competition in recent years has come from discounters like The Golden Arcade
and JDS Corporation which offer an irregular yet very economic selection of accessories. The
competition with these firms will be strongly influenced by the higher quality and the
greater likability of Accessor- ties. The strong brand of the company and its more targeted
marketing approach will be sufficient to perform satisfactorily even when large discounters
try to tap into the accessories market with cut rate prices.

IV. Management Plan

A. Organizational Structure

Accessor- ties’ initial team is consisting of entrepreneurs who will implement

innovative products, including the general manager who’s in- charge in the maintenance
and review of the operation. The assistant manager will provide assistance to the general
manager and to the entrepreneurs.

General Manager

Assistant Manager

Entrepreneur Entrepreneur

Entrepreneur Entrepreneur Entrepreneur

Entrepreneur Entrepreneur
V. Marketing Plan

A. General Marketing Strategy

To make the products marketable to the target customers, Accessor- ties will
distribute some flyers before the date of implementation to introduce the products. This will
be easier for the customers to choose different designs or styles that are reasonably priced.
High- quality advertising materials like flyers, posters, and brochures will also be provided.

Additionally, there will be promotions of products like giving discounts if a

customer buys at least 4 accessories. By promoting the products, customers will buy more
or will visit frequently to avail the promotions. Moreover, a survey about the target market’s
preferences will be conducted.

B. Marketing Mix
a. Product
The products are accessories like hair ties, earrings, necklace, and bracelets which
are designed to our valued customers. Whoever wears the products will stand out
from crowd. All are with attractive designs.
b. Price
The products have reasonable prices but they will not be too high or too low. These
prices will be affordable for the target market. Products range from 5- 20 Philippine
peso.
c. Place
The products will only be sold around the premises of Senior High School
department of OMNHS.
d. Promotion
This business organization will use various methods to promote products, mostly
through advertisement. Room by room giving of flyers as form of advertisement will
be part of it. Flyers contain actual picture and the price. On the other hand,
technology through social media will also be used to boost and gain attention of our
target customer.
VI. Operation of Plan

A. Human Resources Needs

The business will run on a day‐to‐day basis which will be then managed by the nine
members of the group wherein the members must possess the ability of doing or designing
the product to be sold and served too as the manpower of the business and provide such
services needed for the growth of the business.

B. Physical Facilities Requirements

Since Accessor- ties’ supplies tend to be small items, a warehouse or large-
equipped facility is not required for the business. All supplies will be stored within the
member of the group’s dwelling; final products will be kept by the members and to be sold
at the school. It will then be located in Oriental Mindoro National High School, Senior High
School Department, at Grade 12 – ABM Executive. All products will be warehoused at the
owner’s primary place. Accessories items will be made at the owner’s home and on demand
at the said location.

C. Technological Resources Needs

Accessor- ties makes sure the relevance of the technological development in which
it may actually help the business to be well-known in the target market or within the
location. Development of technology has introduced digital marketing strategies through
which the merchants are able to sell their own product and services online.

VII. Financial Plan

A. Capital Structure

Accessor- ties will need 1000 Philippine Peso to get the business on the ground. At this
time, the business organization has raised 1000 Philippine Peso through the contribution of
each entrepreneur. Each one of them contributed 111 Philippine Peso to start the business.
This fund will be used to purchase the following materials to be used to make the
accessories:
 Materials Quantity Total Price
Small Beads (Assorted) 20 packs 200
Big Beads (Assorted) 20 packs 200
Nylon 5 rolls 100
Garter (small) 10 yards 30
Ribbon 30 yards 90
Rubber Bands 3 packs 30
Memory Wire 5 rolls 50
Earring Hooks 5 packs 50
Glue Sticks and others 50 pieces 250
Figure 1. This shows how the capital will be used to purchase products.

B. Pricing

Accessor- ties is very committed in bringing high quality accessories to Senior High
School students of OMNHS in which the prices will reflect a range of mid- to- high pricing.
The prices of the products range from 5 Philippine pesos to 20 Philippine Peso.

C. Sales Forecast
Weather conditions will have an impact on the popularity and sales of the products
to be sold. Hair ties will be popular during the sunny season which will be expected to be on
a higher demand in the market. Also, accessories for females like bracelet, necklace, and
earrings are always on demand and does not depend on any season. The quality of the
products will also affect the sales as well as its price.
 With this, a higher possibility of increase in sales over a period of time will be
expected over a period of time.

SALES FORECAST FOR A MONTH

140

120

100

80

60

40

20

0
Week 1 Week 2 Week 3 Week 4

Column2

Figure 2. This shows the graph of the sales forecast of the products over a period of time.

D. Income Projection

Based on our marketing plans, location, store size, and product offerings, we
expect to collect monthly sales of 2000 Philippine Peso. Our average cost of goods sold
will be 30 %. We will become profitable on a weekly basis before the end of the month.