HOLY TRINITY COLLEGE OF GENERAL SANTOS CITY

Daproza Avenue, General Santos City

LIRIO DE AGUA

“Lirio de Agualing-galing!”

Presented to: Marxylyn Panaguiton

Presented by:

Anisah Tiboron Joberti Anne Acao

Bea Francine Degino John Hope Belbider

Bryll Paclijan John Neal Liquit

Cezil Nicole Alianza Kessie Morales

Darlianne Klyne Bayer Noami De Luna

Eulyses Kyent Montejo

1|Page
 ACKNOWLEDGEMENT

The completion of this business plan could not have been possible without

the participation and assistance of so many people whose names may not all be

enumerated. Their contributions are sincerely appreciated and gratefully

acknowledged. However, the group would like to express their deep appreciation

and indebtedness particularly to the following:

To the Entrepreneurship teacher, Marxylyn Panaguiton, for her

knowledge, guidance and support for us.

To the parents, for their endless support, kind and understanding spirit

during conducting this business plan.

To all relatives, friends and others who in one way or another shared their

support, either morally, financially and physically. Thank you.

2|Page
 TABLE OF CONTENTS

Page

Title Page ……………………………………………………………………………… 1

Acknowledgement ………………………………….……………………………….... 2

Table of Contents ……………………………………………………………….……. 3

Executive Summary …………………………………………………………………. 4

The Business …………………………………………………………………………. 6

Organizational Plan …………………………………………………………………... 10

Production Plan ………………………………………………………………………. 15

Marketing Plan ……………………………………………………………………….. 19

Financial Plan ………………………………………………………………………… 24

Critical Risk Analysis ……………………………………………………………….. 30

3|Page
 EXECUTIVE SUMMARY

According to PETA, most leather produced and sold in the U.S. is made

from the skins of cattle and calves. Other species are hunted and killed

specifically for their skins, including zebras, bison, kangaroos, elephants,

crocodiles, alligators, ostriches, lizards, and snakes. With this, Lirio de Agua

takes advantage of this issue and made it to the corporate world by producing

eco-friendly bag made out of water lilies.

The business was named “Lirio de Agua”, the Spanish word for water

lilies, since product’s raw materials is water lily. Lirio de Agua create eco-friendly

bags made out of water lilies made by the Filipinos to showcase their

creativeness and to stop hunting and killing of the animals.

Lirio de Agua used Porter’s five forces and SWOT Analysis to analyse the

industry where the business links to prosper the strengths and opportunities, to

acknowledge weaknesses and threats, and to ascertain the strategies that the

company will make use of, considering that the business is newly established

company.

Lirio de Agua’s target market is the residents of General Santos City

especially of Barangay Apopong, Sinawal, Fatima and Calumpang. The

business utilizes bundle pricing, odd pricing, and penetration pricing to energize

the purchase power of the market. Since social media influencers really hold a

wide connection, Lirio de Agua sponsored some media influencers to promote

the product. The location of the business will be at the General Santos City

Airport since the vision of the company is to promote the creativeness of the

Filipinos. The business in under sole proprietorship with a starting capital of

Php750,000.

Lirio de Agua forecasted that the sales will be at least 87,500 during

introduction stage or first month of operation and will increase 25% per month.

4|Page
 Furthermore, risks and obstacles were identified, analyzed and were given

absolute solution to acknowledge each possible problems and risks to minimize

the undesirable effect and to prevent unwanted problems.

Lirio de Agua promotes unique and eco-friendly, animal cruelty free and

trendy product that capture the heart of the customers. Many of the customers

will be enticed about the product’s creativeness and its big help for the

environment. Thus, this business is really feasible. Given that the Lirio de Agua

entails low start-up costs, accessible raw material and suppliers, market with

strategic location, pricing and marketing strategies and offering quality products.

5|Page
 THE BUSINESS

A. Industry Analysis

i. Supplier power

The bargaining power of suppliers of the company can be

considered to be low. The raw materials needed for the product is cheap

and can be seen anywhere. Lirio de Agua has plenty of suppliers such as

the indigenous people from nearby provinces. The inputs, however, are

very much affected by the external environment which the company

themselves have little control.

ii. Buyer power

The company is distinct from other businesses. Lirio de Agua offers

eco-friendly products unlike other business that needs to kill animals to

have the products. The product is very unique. Thus, the company Lirio de

Agua have low in buyer power. The company does not have a product that

has the same concept with other companies.

iii. Number of competitors

As for the number of competitors, the company has few of them.

The competitors are those silk and leather products that are produced by

the indigents to create handicrafts such as wallet and bags. Aside from

that, Lirio de Agua has competitors that already have a name in the

industry. But, Lirio de Agua believes that the company will have a name in

the industry in the future.

6|Page
iv. Possibility of substitution

Lirio de Agua’s raw materials can be found everywhere. There

would be less possibility that the customers would find another company

for substitution. But, there might be a time that the company would raise

the prices when the climate is not in the good condition. If the company

has raised the prices, which would be time that the customers would

prefer to buy at the competitors as the substitution. Also, there would be

much possibility that the customers prefer to buy at Lirio de Agua for the

product is cheap but durable unlike other products that is very expensive

and not eco-friendly.

v. Possibility of new entrants

There is a high threat of new entrants that the business may have.

This business is profitable which can attract more competitors. Also, this

kind of business is easy to enter because the materials needed for the

product can be seen everywhere. However, even if the competitors

increased, Lirio de Agua ensures that the products are more durable

among others.

vi. SWOT Analysis

a. Strengths

 Very competitive and professional company.

 Inexpensive raw materials.

 Consistent quality.

 Owner has a strong combination of business development

and intercultural experience.

b. Weaknesses

7|Page
  The business does not have established a name in the

industry yet.

 Lack of man power.

 Requires controlled environment.

 Performance depends on suppliers.

c. Opportunities

 Expand in international markets.

 Engage more in exclusive designs.

 Increase in the demand of eco-friendly products.

 Enhancement of product continuously.

d. Threats

 New competitors taking ideas that could know the company

down.

 Existing competitors with strong market.

 Uncertainty as to the environmental impact of present

activities.

B. The Company

i. COMPANY NAME & TAGLINE

The company name is “Lirio de Agua”, the Spanish word for

water lily. The business owner decided to name the company as

Lirio de Agua because the product is bag made out of water lilies.

Also, the company is pleasing to the ears when the target market

hears it.

The company’s tagline would be “Lirio de Agualing-galing”.

Most of the individuals know that water lilies are not that big unlike

the other plants. It may look small but it is very beneficial. A small

8|Page
 water lily could have big impact. With water lilies, anyone can make

a bag. With this, people can also save the animals.

ii. COMPANY VISION & MISSION

VISION: Lirio de Agua will be the leading company in promoting the

creativity of Filipinos out of water lilies and to give satisfaction to the

consumers by selling it in cheap prices.

MISSION: To nurture and promote a product using water lily that

has a good quality, durable, and affordable one.

iii. COMPANY’S OBJECTIVES

 To prioritize the customers' requests and feedback

 To offer a good quality product to the market.

 To promote the creativity of the Filipinos.

 To make the Lirio de Agua one of the best supplier of bags in

the country.

 To encourage indigenous people to take care water lilies.

iv. LOCATION MAP

The company choose the very own General Santos

International Airport. One of the company’s objective is to promote

the creativeness of Filipinos. The company observed that a lot of

foreigners are visiting shops that is present in the airport. Thus, the

company decided to put the business shop in the airport so that the

foreigners would recognize the creativeness of Filipinos. Also,

shops available in the airport only offers shirts as souvenirs so the

9|Page
 company thought that putting the business there would be a good

one.

ORGINZATIONAL PLAN

A. Manpower Plan

i.ORGANIZATIONAL CHART

ii.PERSONNEL QUALIFICATION

a. General Manager

 Must have at least 3 years of experience as a manager.

 Has degree in Business Management or Masters in

Business Administration.

 Must have excellent knowledge about different business

functions.

 Has strong leadership qualities.

 Should have strong work ethic.

10 | P a g e
  Has very good interpersonal skills.

b. Production Manager

 Should have excellent organizational and time management

skills.

 Must have a degree in Business Management.

 Must be excellent in verbal and written communication skills.

 Industry-related experience.

c. Marketing Manager

 Must have a bachelor’s degree in marketing, finance or

business administration.

 Should have at least two years of experience as a marketing

manager.

 Has an extensive knowledge of marketing strategies.

 Must have good collaboration skills.

d. Supervisor and Sales Officer

 Must have at least 2 years of experience in the industry.

 Must be familiar with the legal guidelines of the field.

 Has the ability to learn a variety of job descriptions.

 Diploma or certificate in the field.

e. Worker and Sales Person

 Should at least 2 years of experience in their own field.

 Must have excellent time management skills.

11 | P a g e
  Has strong persuading skills.

 Must possess creative and innovative skills.

iii. PERSONNEL DUTIES & RESPONSIBILITIES

a. General Manager

 Overseeing daily business operations.

 Developing and implementing growth strategies.

 Evaluating performance and productivity.

 Training low-level managers and staff.

b. Production Manager

 Planning and organizing production schedules.

 Assessing project and resource requirements.

 Determining quality control standards.

 Overseeing production processes.

c. Marketing Manager

 Defining and managing your brand.

 Producing marketing and promotional materials.

 Creating content providing search engine optimization for

your website.

 Conducting campaign management for marketing initiatives

d. Supervisor

 Accomplishes department objectives by supervising staff

and organizing and monitoring work processes.

12 | P a g e
  Accomplishes staff job results by coaching, counselling, and

disciplining employees.

 Provides quality service by enforcing quality and customer

service standards.

 Completes operations by developing schedules, assigning

and monitoring work, gathering resources, and

implementing productivity standards.

e. Staff

 Assemble goods on production lines.

 Carry out basic quality and testing checks.

 Store goods and raw materials properly in our warehouse.

 Pack goods for shipping.

f. Sales Officer

 Inform leads and customers of current promotions and

discounts.

 Maintain positive business and customer relationships in the

effort to extend customer lifetime value.

 Develop strategies for more effective sales, both individually

and as part of a team.

 Answer all lead and customer questions accurately; prioritize

and/or escalate lead and customer questions as needed.

g. Sales Person

 Greet customers.

 Help customers find items in the store.

13 | P a g e
  Check for stock at other branches or order requested stock

for customers.

 Provide customers with information about items.

iv. PERSONNEL SALARY STRUCTURES

Position Salary per month

General Manager Php 15,000

Production Manager Php 10,000

Marketing Manager Php 10,000

Supervisor Php 8,000

Sales Officer Php 8,000

Staff Php 7,000

Sales Person Php7,000

v. HUMAN RESOURCE CONTROL POLICIES

In order to maintain the formality of the company and to strengthen the

Human Resource, there are certain policies that every employee should

follow:

 Using of cell phones while working is not allowed.

 No I.D, No Entry.

 Workers must wear the uniform.

 Employees must be on time (9am to 5pm).

 Respect the co-workers.

 No smoking policy.

 Maintain the drug-free workplace.

14 | P a g e
 PRODUCTION PLAN

A. Monthly Production Report

Monthly Production Report for the month of March 2021

Raw materials Unit Variable Cost Quantity Total Variable

Cost

Water Lily Fibre P100/kilo 10 P1,000

Varnish P50/bottle 2 P100

(375 ml)

Thread (brown) P20/roll 6 P120

Water - - -

Needle (45mm) P18/pack (5 2 P36

needles per pack)

Synthetic canvas P20/sheet 350 P7,000

(8 x 12 inches)

Total Variable Cost = P8,256.00

Output Produced Unit Variable Selling price per Estimated Sales

Cost per output output

350 units (P8,256 ÷ P250 P87,500

350)P23.59

15 | P a g e
 Lirio de Agua estimated that 350 pieces of water lily bags will be produced

for the month of March. The production of 350 bags was based on the

demand predicted by the company. In 385 participants, 323 have a

purchasing power to purchase the Lirio de Agua bags or 85% of the

participants. Because of this, the business assumes that at least 350 bags

will be sold. Moreover, to produce the 350 bags, the total variable cost

needed to be utilized by the business is P8,256.00. The company have

the budget or fund to bring out the said amount. Thus, it can produce 350

bags for the month of March.

B. Production and Service procedures

The following are the steps to produce bags using Water lily:

Step Procedure:

1 Harvest water lily and collect raw materials needed.

2 Dry the water lily fiber through sunlight.

3 Press the water lily fiber using presser in order to attain good

quality material for the next procedure.

4 Cut the pressed water lily fiber into small strips.

5 Weave the strips to form a mat like using water lily fiber.

6 Sew it according to the desired style of the bag.

7 Add varnish to add details.

8 Wait for the varnish to dry.

9 Prepare for packaging.

10 The bags are ready to be display and to be sold.

C. Plant/Shop Layout

16 | P a g e
B. Inputs and Management

i. Raw Materials

 Water Lily  Glue  Water

Fibre

 Thread  Synthetic canvas

 Needle  Varnish

ii. Facilities and Equipment

 Scissors  Silk Screen  Ladle

 Knife  Shelves  Paint Brush

 Large Basin  Strainer  Presser

17 | P a g e
 i. it

iii. Utilities and Waste Disposal

The company will have large trash bags and trash bins to be

used for the proper disposal of the company’s production waste.

There will be four trash bins in total. Each trash bins will be for

Biodegradable, Non-Biodegradable, Recyclable Waste, and

Special Waste. All of the trash bins will be placed inside the large

trash bags separately. After two weeks, all trash including the

recyclable waste will under segregation and will be given to those

garbage trucks who are assigned to roam around the area.

Water supply, electricity supply and other equipment must

be shut off or turned off when not in use, not only in the

production area but in all areas of the store. Employees assigned

in the specific area are responsible to do so and must notify the

owner or the general manager in case there is any problem. The

Managing Director is required to check all areas of the store

including production area before leaving to make sure that all

utilities and equipment are turned off or unplugged to prevent any

accidents that may occur.

18 | P a g e
 MARKETING PLAN

A. Target Market

i. Geographic Profile & Demographic Profile

Based on the result on the survey that the company conducted,

Lirio de Agua targets people who are young, adult, professionals,

single and taken that age ranges at 18 to 60 years old with a daily

income of Php 250.00. In terms of gender, the product is preferable by

men with 75% and women with 89%. The target market of the

company is located at the barangays of General Santos City especially

in Barangay Apopong, Sinawal, Fatima and Calumpang.

19 | P a g e
 ii. Psychographic and Behavioral Profile

Based on the result of the survey that the conducted, the target

market of the business are those individuals who appreciate the

creativity of Filipinos, those who wants to consume money, a low-cost

product but a durable one, and those who are concerned with the

environment. In additional, 86% out of the total population will

purchase some of these products thrice a year, considering that bags

are very essential for everyday life.

iii. Estimated Market Share

Since Lirio de Agua is still new to this industry, the company

expected that it will have few costumer for it is still a new business

compared to the well known brand. But, seeing that product price is

cheap and the product is good as those other products that you can

buy and see anywhere like inside the mall, social media or even in

tiangge, the company can get 14% of market shares against to those

competitors. This chart was the result of the survey conducted by the

Lirio de Agua. Below shows the estimated market share of Lirio de

Agua accompanied by the other brand.

Estimated Market Share

Secosana
Heartstrings
14% Michaela
30% Kimbell
15%
Lirio de Agua
24% 17%

B. The product

i. Brand Name

20 | P a g e
 "Lirio de Agua" is the chosen name of the business for it is unique

and alluring to the ears. It is coined from the Spanish word "Lirio"

which means lily and "Agua" means water. The owner chose this name

because of the thought that Philippines are highly influenced by the

Español. Also, it adds attractiveness to the customer because the

name itself is eco-friendly.

ii. Product Feature/Uniqueness of the Product

The product of Lirio de Agua is purely made of the water lilies. The

bag has the size of 10 inches for height, 8 inches for width and 3

inches for the depth. The product has a nice slim strap that is very

suitable for every type of outfit of the day (OOTD). The inside of the

back bag is made of synthetic fabric. The exterior of the product was

purely made of water lilies with the logo at the lower right of the surface

of the bag.

iii. Product Packaging and labelling

The products would be place inside a brown box with shredded

curled paper surrounding it. The logo of Lirio de Agua would on the

surface of the box with some aesthetic stickers around the product and

21 | P a g e
 also on the inside of the box. The product would be placed neatly at

the centre of the box.

iv. Logo description

The logo represents the main product, which is the water lily, year

of the establishment and the product name. The color green represents

the love for the environment at the same time to show people that the

product is eco-friendly. Lirio is a kind of a lily plant while Agua means

water. The logo depicts the main raw material which the company

decided to put the logo in the center. The background is white for it

symbolizes purity of what the company has to offer.

C. Pricing Strategy

i. Introduction or Launch Stage

22 | P a g e
 The company would utilize penetration pricing. Since the Lirio de

Agua is just starting to build a name in the industry. The bag would be

Php200 instead of Php250. Also, the company will give freebies such

as indigenous ornaments. Two weeks after the launching of the

product, the price would be back from its original phase.

ii. Growth and Maturity Stage

As the company grow, the entrants of new competitors and the

innovations of competing brands are not impossible. Thus, the

company will enforce the odd pricing to attract the customers. The

price would be Php249 instead of Php250.

During the maturity stage, the company will apply bundle pricing by

enforcing “buy one take one” for every last three days of the month to

attract more shoppers. Also, the company wanted to change the

packaging in every occasion such as Valentine's, summer, Halloween,

and Christmas. With this, the product would be appealing to the

customer's eyes and will attract more buyers.

D. Place Strategy

i. Distribution Channel

The physical store of the Lirio de Agua is located at the airport of

General Santos, since one of the objectives of the company is to

promote the creativity of Filipino to the foreigners. The company “will

directly serve and sell the bag to the costumer since the company

cannot produce a large number of bag that can be distributed to

retailers or wholesalers. Thus, the distribution channel of Lirio de Agua

is Producer Customer.

E. Promotions and Sales Strategy

i. Launch or Introductory Stage

23 | P a g e
 1. Advertising Strategy and Mix

The company would have brand ambassadors and

ambassadresses that are already known in social media

industry such as the social media influencers who influence

people in many aspects. Lirio de Agua knows how broad the

connections of the influencers hold. With this, the Lirio de Agua

would be known in such no time.

2. Sample TV Script, Radio Script, Print Ad and Website

FINANCIAL PLAN

A. Financial Forecasts

Below are the following transactions of Lirio de Agua business for the month of

March 2021.

March 1 Invested cash amounting Php 750,000

March 2 Sold goods amounting Php 20,000

March 3 Sold goods amounting Php 7,000 on account

March 4 Purchased Php1,000 office equipment on credit

March 5 Collected account on transaction (March 3)

24 | P a g e
March 5 Purchased furniture amounting Php10, 000

March 7 Paid the office equipment on credit

March 7Borrowed Php 78,000 issuing a note

March 8 Purchase PPE, Php350, 000

March 8 Purchase office supplies on credit amounting Php 10, 500

March 10 Sold goods amounting Php 18, 000

March 13 Sold goods amounting Php 8, 500 on credit

March 15 Paid on credit account (March 8)

March 15 Paid salaries to employees amounting Php 30,000

March 16 Paid the note in half

March 17 Collected amount on transaction (March 13)

March 21 Sold goods amounting Php 20,000

March 23 Sold goods on account amounting Php 14, 000

March 24 Paid the electricity and telephone bill Php 3, 000

March 25 Collected account on transaction (March 23)

March 28 Paid the water bill Php 750

March 29 Withdrew Php30,000 for personal use.

March 30 Paid salaries to employees amounting Php 30, 000

March ASSETS LIABILITIES EQUITY INCOME COST/EXPENSES

2021 = + + -

25 | P a g e
1 750,000 750,000

cash capital

2 +20,000 +20,000

cash sales

3 +7,000 +7,000

accounts sales

receivable

4 +1,000 +1,000

office accounts

equipment payable

5 +7,000

cash

-7,000

accounts

receivable

5 -10,000

cash

+10,000

furniture

7 -1,000 -1,000

cash accounts

payable

7 +78,000 +78,000

cash notes

payable

8 -350,000

cash

+350,000

26 | P a g e
 PPE

8 +10,500 +10,500

office accounts

equipment payable

10 +18,000 +18,000

cash sales

13 +8,500 +8,500

accounts sales

receivable

15 -10,500 -10,500

cash accounts

payable

15 -30,000 30,000 salaries

cash expense

16 -39,000 -39,000

cash notes

payable

17 +8,500

cash

-8,500

accounts

receivable

21 +20,000 +20,000

cash sales

23 +14,000 +14,000

accounts sales

receivable

24 -3,000 3,000 utilities

27 | P a g e
 cash expense

25 +14,000

cash

-14,000

accounts

receivable

28 -750 cash 750 utilities

expense

29 -30,000 -30,000

cash drawings

30 -30,000 30,000 salaries

cash

782,750 39,000 720,000 87,500 63,750

782,750 782,750

i. Financial Statements

a. Income Statement

Lirio de Agua

Income Statement

For the month ended March 31, 2021

Sales Php87,500

Less: Utilities Expenses Php3,750

Salaries Expense Php60,000

28 | P a g e
Profit Php23,750

b. Statement of Changes in owner’s Equity

Lirio de Agua

Statement of Changes in Owner’s Equity

As of March 31, 2021

Acao, Capital, Beg. Php750,000

Add: Profit Php23,750

Total Php773,750

Less: Acao, Drawings Php30,000

Acao, Capital, End Php743,750

c. Balance Sheet Statement

Lirio de Agua

Balance Sheet

As of March 31, 2021

ASSETS LIABILITIES AND OWNER’S EQUITY

Current Assets Current Liabilities

Cash Php 411,250 Notes Payable Php39,000

Total Current Assets Php411,250 Total Current Liabilities Php39,000

29 | P a g e

Php361,500 Acao, Capital, End Php743,750

Non-current Assets

PPE

Furniture

Total Non-current assets

Total Assets

CRITICAL RISK ANALYSIS

i. Potential Problems/Obstacles and Risks

The following are the potential problems/obstacles & risks:

 Uncertain about the future

 Chaos between employees and the management

 Price increasing of raw materials

 Rising of new competitors

 Increase in utilities expenses

 Change of customer’s preferences

30 | P a g e
ii. Alternative courses of Action

Business problems and risks are inescapable that is why the company

had already planned and prepared possible solutions for the future obstacles and

risks that Lirio de Agua might encounter. Since, Lirio de Agua is just a new

business, it is already predicted that there will be lack of customers on the first

month of operation of the business and there is a high rental cost considering the

location. On the other hand, the company will use penetration pricing to attract

some customers and will give freebies like indigenous ornaments and apply 50%

discounts for the opening to attract the customers and to increase the sales. The

company will sponsor some media influencer to promote the product.

The business might experience shortage on raw materials especially on

water lily itself when an unexpected calamity happens and when the price of raw

materials increases, that is why the company have back up suppliers from

different regions in the Philippines and the company will apply inventory

management techniques so that there is enough products displayed in the

company.

Moreover, to avoid conflicts and misunderstanding in the company, the

owner will have regular meeting as well as checking on the employee's

performance routinely and strictly implement the human resource control policies

to make sure the efficiency of the business and the relationship of the

employees. The management will also prepare memos before issuing policy to

have a transparency.

In addition, for the business to lessen the utility bills, the owner will

assigned some employees for the utilities and make sure that the employees are

responsible on their job.

iii. Conclusion
31 | P a g e
 Nowadays, consumers prefer recyclable and a sustainable products.

Therefore, the company took the opportunity to produce and sell bags made out

of water lilies.

During the introduction stage, the company does not expect a large

market share of customers especially that the company has a lot of competitors

in the industry. With the help of advertising, marketing strategies, and utilizing

social media, the company’s sales will increase and it will help the company to

grow and build a good relationship to the customers.

In addition, selling a low-cost product will help the business to be

successful and feasible. The use of recyclable and sustainable products can also

help the environment in terms of reducing the amount of waste sent to different

landfills. It can also awaken the consumers about the importance of reducing

environmental impact. Lastly, Lirio de Agua promotes the creativeness of the

Filipinos and utilizes eco-friendly and animal cruelty free products that can surely

persuade the attention of the customers.

32 | P a g e