CalaCulture

“Craft your own footprints”

Iloilo City Proper, Iloilo City, 5000 Iloilo

Kathleen F. Bordon

Stephany Leeane Buyoc

Karl Frederick D.Canong

Julian P. Catalogo

Krishna T. Catoras

Cherry Ann C. Claudio

Ma. Casandra Mae C. Demorar

Vince S. Enderes

May 2023

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 Table of Contents

Executive Summary 1

Vision and Mission Statement 2

Social Value Proposition 2

SWOT Analysis

Strengths 3

Weaknesses 4

Opportunities 6

Threats 8

List of Competitors/ Competitor Analysis 9

Market Analysis and Marketing Plan

Market Analysis

Available Market 15

Marketing Plan

Product 17

Price 25

Promotion 29

Place 30

Operation Plan 30

Financial Plan 37

Management Plan

Organization Chart 40

Management Team 41

References 45
Executive Summary

CalaCulture is a sustainable fashion brand that combines eco-friendly practices with the commitment

to improve social responsibility. The company is planned to be established in 2025, and its physical store is

located at Red Plaza Complex in Calle Real; the street is known as the Central Business District of Iloilo;

hence, it increases business exposure to suppliers and customers. Additionally, the warehouse is situated in

SGS Iloilo Warehouse, Muelle Loney St., Muelle Loney- Montes, Iloilo City Proper, Iloilo City. The enterprise

utilizes rattan materials and textile upcycling in weaving comfortable, durable, stylish, and biodegradable

sandals, heels, and shoes, which further inspires a switch to a more ethical fashion lifestyle. This switch will

stimulate moral labor practices by encouraging recycling, reducing carbon footprints, supporting local

communities, and providing employment opportunities for underprivileged women. CalaCulture further

recognizes the importance of upcycling and preserving cultural heritage through fashion as an alternative for

luxury brands, sold at lower prices for a more competitive advantage in contrast to CalaCulture's competitors,

such as Sewn Sandals, Sperry, and INNÉ. In CalaCulture, we believe fashion is not just a statement but a

platform to promote a more equitable and sustainable future for every Filipino citizen. We are dedicated to

crafting our footsteps for a better future, one shoe at a time.

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 Vision & Mission Statements

a. Vision Statement

CalaCulture aims to lead the industry towards high-quality and sustainable fashion while offering

outstanding customer service to build enduring bonds with our clients. Our message is more important than the

shoes. The initiative is resource-based and aims to give superior aesthetic quality and ultimately substitute

imports. It is about standing up for our community, empowering marginalized voices, and running a business

ethically.

b. Mission Statement

Our company aims to increase revenue, build our business, and please consumers by creating

innovative, long-lasting products at competitive prices. CalaCulture believes fashion should not only look good

but also do good. The firm uses environmentally-friendly materials, prioritizes fair labor practices, and works

to reduce waste throughout our entire supply chain. By expecting more from our partners and less from the

environment, we commit to evolving into a more sustainable and socially conscious version of ourselves.

Social Value Proposition

Calacature is an eco-friendly and culture-promoting brand which utilizes rattan materials in

weaving comfortable, durable, stylish, and biodegradable sandals, heels, and shoes from textile upcycling

that can further inspire consumers to switch to sustainable fashion.

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SWOT Analysis

A. Strengths

1. CalaCulture has strong legal connections with local Rattan farms and thrift shops, which ensures

continuous supply of rattan and textile materials needed for manufacturing.

2. The Human Resources Management is composed of highly skilled and intelligent members that

guarantees employment of competent, efficient and trustworthy workers and laborers.

3. CalaCulture supports local businesses and rural village industries because it manufactures

produce from local thrift shops, and hires workers from underprivileged communities to help

improve their lifestyle.

4. Hiring unemployed women from underprivileged communities helps promote women

empowerment and gender equality, most especially in the area of business.

5. CalaCulture provides free in-depth training to the employees in order to sharpen their knowledge

and skills in doing assigned tasks.

6. The thorough focus on implementing efficient inventory and storage strategies eliminates sudden

errors and allows real-time tracking of supplies.

7. Industry Association Membership is a priority for CalaCulture as it establishes vital connections

with other similar associations that helps in the long term stability and success of the business.

8. CalaCulture invests in a second automated product quality tracking system that guarantees a

product quality check that is free of human errors.

9. The main store is located within Calle Real, the Central Business District of Iloilo, which means

that it is central to customers, suppliers and carriers.

10. The strategy of placing the warehouse and the main store near to each other aids in decreasing the

transportation cost of the business.

11. Rattan is a strong, durable and easily-repairable material, which makes any product made from it

sustainable, easily-repairable, and long-lasting.

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 12. Rattan has a vast array of colors and textures that can make rattan products adjust to current

social trends and keep up with fashion.

13. Rattan is a breathable, flexible, and lightweight material that aids not only in the comfortability of

a product, but also in the usability regarding warm weather and active lifestyles.

14. The flexibility of a rattan paves the way for effortless weaving of customer’s desired products,

and enhancement of the weaver’s skills.

15. The biodegradability and compostability of Rattan-produced materials aids in alleviating landfill

waste and minimizing environmental carbon footprints.

16. Upcycling promotes sustainable management and environmental improvement as it reduces

needed chemicals for production, which aids in improving environmental air quality and

pollution.

17. Production cost is decreased since CalaCulture rely more on reusing materials than purchasing

new ones.

18. The Eco-friendly products of CalaCulture appeals more to consumers, most especially during

these times of environmental awakening, because it provides a sense of purpose and fulfillment.

19. CalaCulture products are cost-friendly as an effect of minimal production and transportation

costs, which means that our products are highly affordable.

B. Weaknesses

1. Low production capacity because of the company's tiny size, which may make it harder to meet

demand.

2. Because the company is new and less known, there is little brand recognition and awareness.

3. Reliance on the supply of textile and apparel wastes as raw materials, which may be impacted by

supply chain breakdowns or seasonal variations.

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4. Only four different product designs are available, which may limit their attractiveness to a wider

customer base.

5. Reliance on a single material (rattan), which can make it more difficult to adjust to shifting

consumer tastes or market trends.

6. Using sustainable and ethical production techniques has a greater cost of production, which could

lead to higher prices and narrower profit margins.

7. Having limited access to finance may limit one's ability to invest in marketing, R&D, or

production capacity.

8. Absence of qualified or experienced personnel in particular fields, such as manufacturing or

marketing, which could lead to inefficiency or bad judgment.

9. A challenge in anticipating and adjusting to changes in the fashion sector that could affect sales

and profitability.

10. Reliance on recycled and upcycled materials may result in manufacturing delays or quality

problems.

11. Restricted distribution options may make it more difficult to reach a larger customer base.

12. Finding a balance between eco-friendliness and fashion trends can be difficult.

13. Due to the handmade nature of the products, production is not scalable, which may make it

challenging to satisfy rising demand.

14. Due to the uniqueness of the raw materials, there is limited capacity to offer customization or

personalization of the items.

15. Dependency on the fashion industry's overall success, which may be unpredictable and sensitive

to changes in the economy.

16. Inability to stand out from other sustainable fashion companies may reduce brand loyalty and

repeat business.

17. Inability to effectively predict demand, which could result in either overproduction or

underproduction.

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 18. Dependence on a single or small set of raw material suppliers, which could lead to supply chain

disruptions.

19. Inability to adapt to shifting consumer tastes and fashion trends, which could cause products to

become antiquated.

20. Absence of ties with retailers, which can make it more difficult to increase distribution channels.

21. Dependability, which can restrict flexibility and scalability, on a single production site or small

team.

22. Having trouble attracting and keeping clients because they think environmentally friendly items

are more expensive or out of style.

23. Insufficient funding for marketing and advertising, which can reduce brand awareness and

exposure.

24. Lack of defense against rivals stealing ideas or replicating goods, which could cause lost revenue

and brand dilution.

25. Due to the emphasis on rattan and recycled textile materials, there is little room for growth into

other product categories.

C. Opportunities

1. Enable to track customer preferences to adjust product options and developments to keep up with

fashion trends.

2. Expansion into new markets - the versatility of the enterprise makes it possible to reach more

customers.

3. The enterprise can collaborate with organizations that support environmental protection and

sustainability.

4. Place of business is located in an area wherein products are accessible to the target market.

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5. Digital mediums and the growth of e-commerce markets are used to increase promotion and

sales.

6. Growing demand of for high fashion style but in affordable prices

7. Emerging fashion for sustainable products

8. The promotion of local products in the country - CalaCulture aims to highlight the culture of the

country using fashion

9. The enterprise adheres to the environmental policies intended for businesses since CalaCulture

uses eco-friendly packaging and recyclable materials.

10. Offer referral codes and reward programs increase customer loyalty

11. Expansion of physical stores and online stores

12. Expansion of manufacturing facilities

13. Technological accessibilities that can introduce new and innovative products

14. Opportunity to increase the product lines

15. Local authority achieves an environmentally positive status

16. Raw material are available in the community for local industry

17. There are proposed legislations that will support social enterprises to widen its research and

development thus highlighting the growing importance of social entrepreneurship in an economic

and political aspect like the Sustainable Development Goals (SDGs) Act. The bill promotes the

development of sustainable practices and waste reduction initiatives, such as textile upcycling

(United Nations, 2018).

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D. Threats

1. Workplace safety- Business property can be expensive to repair or replace due to fire or

electrical damage.

2. Product Liability- End users may be at risk from omitted design faults, manufacturing errors, and

gaps in warnings and instructions.

3. Equipment Failures- The production line's critical machinery might malfunction at any time,

necessitating expensive repairs or replacements.

4. Property Damage- Specialized machinery and equipment can be expensive to repair or replace.

5. Supply Chain Interruption- Reliance on your suppliers may result in unfavorable events beyond

your control.

6. Employee Injury- Manufacturers may still face workplace accidents and injuries despite safety

policies.

7. Large Losses-Enormous damages can swiftly accumulate, particularly when litigation results in

significant jury verdicts.

8. Raw Material Prices- Fluctuations in markets can have a considerable impact on manufacturing

companies.

9. Ransomware attacks and software supply chain vulnerabilities are two examples of cyberthreats

that may be used by threat actors to infiltrate industrial control systems.

10. Compliance Risk- Operations and even sales income will be impacted by how Calaculture is

ready to comply with significant rules and regulations.

11. Competition with well-known premium companies that have more brand awareness and

marketing expenditures is challenging.

12. Due to the competitive nature of e-commerce, it could be challenging to build a strong online

presence.

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 List of Competitors

Competitors Analysis

CalaCulture focuses on creating comfortable, enduring, fashionable, and biodegradable sandals, heels,

and shoes that can further inspire customers to switch to sustainable fashion. Moreover, CalaCulture is an

environmentally friendly and culture-promoting brand. CalaCulture competes with many apparel competitors,

but only a few offer recycled products in the majority of their product lines. CalaCulture anticipates

competition between specific handmade shoe competitors. Due to their competitive prices on other types of

sandals offered by Sperry, Sewn Sandals, and INNÉ, they are viewed as rivals of the CalaCulture Company.

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 Name of competitors Product Price
(Direct)

Luzviminda

P1,690

Sewn Sandals Arina Mojo

P3,490

Kasaganahan

P1,790

P1,500 – P4,000 Range

Price

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 Seaefish Chambry

P3,495

Crest Vibe Gingham

Sperry P3,995

Pier Wave Canvas

P3,495

P3,000 – P5,000 Range

Price

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 Sinta Double Strap Slide
P1,990

Ava Sandal Natural

P1,690

INNÉ

Liria Double Strap Heel

P1,590

P1,500 - P 4,000 Range

Price

(Table 1: Calacuture’s Direct Competitors)

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Sewn Sandals

Sewn Sandals’ first-ever trade fair and bazaar organized by Yabang Pinoy Movement has opened

up awareness to promote Philippine-made products. The business thought the Philippines could bring

various opportunities, like opening their first physical store in BF Homes, Paranaque, in 2009. Since then,

business owners opened different stores in Alabang Town Center, Market Market, and Greenhills

Shopping Center (Sewn Sandals, 2023).

Sperry

Sperry’s goal is that 100% of new textile models produced by 2025 will be part of the SeaCycled

Collection or made with Biovative materials. By 2027, Sperry aims to create a product that is 100% more

sustainable and strives to reduce Sperry’s water usage in leather manufacturing. From 2018 through 2022,

Sperry and its partners will save 98 million gallons of water in their manufacturing processes. Sperry is

located in Paseo Outlets Mall, Santa Rosa, Laguna (Sperry, 2023).

INNÉ

INNÉ is about keeping age-old traditions relevant, breathing new life into them, and recreating them

into modern-day essentials. INNÉ was born out of a desire to bring back the appreciation for slowly and

carefully handcrafted pieces by local artisans using raw, natural materials and traditional techniques. The

business aims to support ethical practices and provide livelihood opportunities by partnering with small

families and communities and, ultimately, keeping the quality and art of Filipino craftsmanship alive. INNÉ

retailers are available internationally, including the USA, and most are in Manila, Philippines (INNÉ, 2023).

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Indirect Competitors

CROCS NIKE

PHP 2,770.81 PHP 2,395.00

Crocs Black White Marbled

Classic Clog Nike Air Max Cirro
PHP 5,495 PHP1,595.00

Crocs Classic Mega Crush

Unisex Clog Nike Victori One
PHP 3,809.86 PHP 2,195.00

Crocs Classic Mega Crush Nike Off-Court

Unisex Clog
(Table 2: Calacuture’s Indirect Competitors)

Nike and Crocs both service similar customer demands or compete for consumer attention, but they

provide distinct solutions or products. Sneakers, like sandals, give an alternate footwear choice that provides

comfort, style, and usefulness. While sandals are more appropriate for warm weather or informal situations,

sneakers are popular for athletics, urban fashion, and everyday use. Sneaker companies compete with sandal

producers indirectly by targeting overlapping client segments looking for casual, comfortable, and trendy

footwear solutions. Crocs, while not conventional sandals, compete with them by providing similar benefits

such as comfort, utility, and casual appeal.

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 Market Analysis and Marketing Plan

Market Analysis: Available Market

CalaCulture was founded to create and design shoes made from recycled and sustainable

materials that will appeal to many people in the country. By 2025, women's footwear sales will increase

by 16.0% to reach PHP 35.8 billion (Globaldata, 2021). Furthermore, according to Reuters (2023), a 2013

research published in the Journal of Consumer Psychology mentioned that consumers are more inclined to

buy a product when they know it may be recycled. With this, CalaCulture is expected to target women in

sizes 5-13 who want high-quality footwear but ethically produced. The marketing of the social enterprise

will be emphasized on chic shoes made from recycled textiles with rattan design. Moreover, CalaCulture

will use distribution channels such as direct sales in physical stores, retailers, wholesalers, and online

shopping platforms to reach a wide range of target markets.

To identify the potential customers of CalaCulture, market analysis will be conducted by

undertaking demographic, psychographic, and geographical factors as a method of market segmentation

in this assessment.

A. Demographic

A total of 25,442,316 female consumers only from ages 20-50 in the Philippines is the estimated

population that CalaCulture aims for (Population Pyramid, 2023). The marketing of the social enterprise will

be emphasized on trendy shoes made from recycled textiles with a stylish accent of rattan attracting female

customers within the scope of brick-and-mortar stores as well as online shoppers. Specifically, the footwear

of CalaCulture will target professionals and housewives, two categories of fashion-conscious female

consumers. The professionals will seek stylish shoes to pair with work outfits, whereas both groups are

interested in dress shoes. Housewives may be searching for trendy, more casual footwear.

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 B. Psychographic

This entails segmenting the market based on the characteristics of the target consumers'

personalities, preferences, views, and lifestyles. CalaCulture products will target people attending formal

or informal events, entertainment, business meetings, simple gatherings, and everyday errands. In

addition, this brand will attract people with a keen eye for good quality products while emphasizing

environmental awareness.

C. Geographic

The physical store of CalaCulture will be situated within or near Calle Real, officially named as

J.M. Basa Street, since it is the Central Business District of Iloilo. CalaCulture will reach its target

markets in Iloilo since the retail store is in the heart of Iloilo, wherein its location is on crowded streets.

CalaCulture is also expected to have buyers and partners throughout Luzon, Visayas, and Mindanao. The

social enterprise will use the direct-to-consumer strategy wherein an online platform sells its products

directly to customers but it will also utilize retailers and sales commissions.

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Marketing Plan

A. Product

(Figure 1: CalaCulture’s Products)

Utilizing textile and clothing wastes and rattan, CalaCulture offers a variety of shoe products that

blend contemporary fashion with Filipino traditions and customs. Recycled shoes were once difficult to

come by; however, CalaCulture, an established brand, is now releasing one-of-a-kind designs handcrafted

by local women from recycled materials and rattan. The products of CalaCulture are eco-friendly, chic,

elegant, and trendy shoes made from natural rattan material and recycled textile fabric that serves as an

eco-friendly alternative to luxury brands. CalaCulture ensures an ethical approach to the production of

sustainable fashion products. Calaculture seeks to market and provide a variety of footwear at an

affordable price, including the following items that are worth buying:

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 I. Semi-formal Heels

(Figure 2. Valory)

Product name: Valory

Description: A pair of elegant semi-formal heels that is ideal for special occasions. Valory sandals combine

wide straps with a chunky platform sole, textile and recyclable material with rattan touch up, and a wood

block heel to give the monochromatic design a balanced appearance and feel. It looks well with both jeans

and dresses, and it is even more fashionable if you keep your hemlines low to truly showcase them. It

includes a variety of features and provides simultaneous access to a variety of colors.

Colors include: white, black, nude

Features:

*Slip-on

*Footwear insoles material made of sewed on textiles

*Footwear outsole material using wood

*Foam or sponge on the wood outsole for comfort

*Heel height (cm): 7.6 heel wood block

*Weaved rattan strap

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II. Formal Heels

(Figure 3. Maya)

Product name: Maya

Description: A sophisticated heel to go with your apparel for a formal event. The finest item we

present is referred to as Maya; it is a pair of formal-ready heels with a rattan aesthetic, sharp pointed toe,

and adjustable back straps. It is made of recycled textiles. With the rattan accents, the heels took on a

more regal and sophisticated appearance with designs, features, and hues that you would regret missing

on.

Colors include: black, white, and brown

Features:

* Adjustable strap as weaved rattan

* Pointed-toe

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* Wood block heel for sturdiness and comfort

* Breathable lining (microfiber textile shoe lining)

* Material: Textile cotton

* Heel height (cm): 6.5

* Hand sewed textile and foam for cushioned comfort

*Wood for outsole footwear

III. Summer Sandals

(Figure 4. Matelassé)

Product Name: Matelassé

Description: The most essential footwear to wear now that summer has made its way. Simple but

fashionable sandals everywhere you want at home, on the beach, even on the streets and they are

comfortable and breathable in the heat. Here is Calaculture’s flat sandal Matelassé. This simple slide

shape is embellished with the buzzy braid features you adore; it is constructed of woven wool fabric for

enhanced comfort and elegance,

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and the wood material sole and heel are decorated with rattan.

Colors include: black, Ivory, cafe color and natural rattan.

Features:

*Rattan Footbed

*Extra Comfort

*Slip on

*Strong Heel toe

*Material: textile fabric

*Heel Height(cm) 2.0

*Weight: 200grams -+

IV. Mules/Loafers

(Figure 5. Imber)

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Product Name: Imber

Description: Suitable footwear to wear and carry with you wherever you go. It is incredibly easy to

maintain, very appealing to wear, and quite fashionable. It is available in a variety of designs and styles

that match many sorts of clothing. Imber, one of our very own loafers/mules, is a closed-toe, light-weight

sandal with rattan and recycled-textile bottoms. Women can wear these as their go-to sandals for casual

occasions. It features a variety of stunning colors that you would undoubtedly adore.

Colors include: black, white, and brown

Features:

*Slip on

*Wood Outsole

*Rattan Toe Cap

*Textile vamp

*Soft Fabric Insole

*Comfortable to Wear

CalaCulture will provide the best options at an affordable price, allowing you to avoid spending a

fortune on luxury brands that offer the same level of quality as CalaCulture. These options include formal

to semi-formal heels, summer sandals, and even loafers in various colors suitable for traveling, going to

the beach, formal events, or anywhere else you would like to go. In keeping with being a social company

that employs sustainable and recycled items as resources in creating the product, CalaCulture chooses to

use boxes or bags made of recycled materials.

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Manufacturing process of CalaCulture shoes

The design section of a private label requires support from the prototype to the completed product.

Initial designs are provided by customer preferences, which are then improved by in-house designers.

Computers or hand drawings are used to create footwear designs, which show the footwear from different

perspectives. Furthermore, a shoe last is a mold is used to emulate a foot giving the shoe its shape as a

guide for the trained worker. Lastly, the textiles wastes are gathered in the various thrift stores, tailor

shops, junk shops, and waste management facilities in Iloilo.

Step by step process in making CalaCulture Shoes:

1. Different shoe components, including the vamp, soles, and heels, are cut out from cardboard to

serve as template and sketch the shape

2. Workers guarantee the finished textile items which are sorted and cleaned

3. Textiles will be carved or shaped into different sizes

4. The workers will be using the wood cutting machine in order to cut the wood then carved, using

gouges then polished and shaped, using a sanding machine to be used as both outsoles and heels;

the main support of the heels working with the shoe mold as a guide.

5. The trained worker will cut the foam for comfort in the insoles and then tightly fasten it on the

wooden outsoles. The worker makes sure that the sponges are securely fastened on both sides

with glue.

6. The textiles are stitched to cover the sponge as insoles applying pressure, adhering securely.

7. The textile is then sewn together using sewing machines to create the vamp using the cut outs as

guides

8. Scissors are used to scrape out the undesirable textiles

9. The trained workers will weave the rattan either as straps or further design and adhered by glue

10. The straps will be inserted in the insoles and will be sewed and glued by the workers

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 11. Finishing touches with the shoes will be made then the finished products will be delivered to the

physical stores.

How to store and clean shoes

Hanging closet caddy. Hang shoes you use occasionally. For instance, hang an over-the-door shoe

storage caddy on your closet door. Select a caddy that hangs on the closet rod with your clothes. Either

choice keeps your shoes organized and off the floor.

Shoe rack or cubby. Organize your non-everyday shoes. Install the shoe rack or shoe cubby in a hall

closet near your front door or along the wall. To keep shoes dry and fresh, use an airy plastic, wood, or

metal shoe rack.

Shoe mat. Create a convenient shoe spot. As soon as you walk in the door, put your shoes somewhere

organized and functional. Put a large absorbent mat near the front door to catch the entire household's

shoes.

Shoe cleaning. A quick pre-storage cleaning extends shoe life. Dirt, dust, and other residues can degrade

your shoes over time. Before storing, clean all shoes. If the shoe becomes dirty, wipe it with a slightly

moist towel or rub it with medium-fine sandpaper while following the natural pattern of the wood. Rub a

tiny amount of olive oil or beeswax into the wood with a dry and clean cloth to protect the wood from

moisture and dirt.

Shoe sorting. Sort by purpose and style and remove extras. Sorting your shoes for long-term storage is

worth it, even if your everyday shoes don't need to be. Sorting shoes by season, purpose, and style makes

them easier to find. And it maintains order.

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B. Price
CalaCulture Costing (in peso)

MATERIALS

Rattan 1,500

Wood 50,000

DIRECT LABOR

Labor Cost 75,000

MANUFACTURING OVERHEAD

Indirect Labor 145,000

Indirect Materials 10,000

Utilities 40,000

TOTAL MANUFACTURING COSTS 321,500

OPERATIONAL FIXED COST

Insurance 19,000

Equipment (Sewing, Sanding and Wood Cutting Machine) 62,990

Depreciation Expense- Equipment 4,510

TOTAL OPERATIONAL FIXED COST 86, 500

OPERATIONAL VARIABLE COST

Advertising Expense 20,000

Rent Expense 15,000

Transportation Expense 20,000

Other Costs 38,000

TOTAL OPERATIONAL VARIABLE COST 93,000

TOTAL COST 501,000

(Table 3. CalaCulture Total Cost)

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 Table 3 includes the materials, direct labor, manufacturing overhead, operational costs, variable costs,

and total costs for the month. Materials include wood and rattan; the direct labor is the labor costs. For the

manufacturing overhead, it computes the indirect labor, indirect materials, and utilities. Operational fixed costs

are insurance and equipment. Last would be the variable costs involved in the product's operations, which

include advertising expenses, transportation, rent expense, and other costs. The total manufacturing cost would

be 501,000 pesos. Calaculture will continue to use its research and development to identify ways to reduce

costs for future reference in adding value and evaluating competitor pricing discrepancies.

The business will incorporate markup or cost-plus pricing strategy. It is a system of pricing in which a

predetermined percentage is applied to the cost of producing one unit of a product (unit cost). The resulting

number is the product's selling price.

To calculate for the unit cost:

The expected units per month are equal to 750 units. Add the cost then divide it by the number of

units to get the unit cost. The unit cost will be computed for every shoe product in this case four different

types of footwear as the business will allocate a different amount for every product.

To calculate for the markup price:

The unit cost will be multiplied with the expected percentage earned on markup on sales.

Calaculture willimplement a 20% markup for the sales of the product.

Name Units Price per Cost Per Total Cost Per unit Total Profit
unit Unit profit

Valory- 180 800 667 120,000 133 144,000

Semi-
formal heels

(Table 3.1. Valory Price)

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Computations for Valory (Semi-formal heels):

120,000 total cost / 180 units= 667 pesos

Markup price:

667 pesos * 20%= 133+667 = 800 pesos

Name Units Price per Cost Per Total Cost Per unit Total Profit
unit Unit profit

Maya- 180 900 750 135,000 150 162,000

Formal
heels

(Table 3.2. Maya Price)

Computations for Maya (Formal heels):

135,000 total cost / 180 units= 750 pesos

Markup price:

750 pesos * 20%= 150+750 = 900 pesos

Name Units Price per Cost Per Total Cost Per unit Total Profit
unit Unit profit

240 700 583 140,000 117 168,000

Matelassé-
Summer Heels

(Table 3.3. Matelassé Price)

Computations for Matelassé (Summer sandals):

140,000 total cost / 240 units= 583 pesos

Markup price:

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583 pesos * 20%= 117+583= 700 pesos

Name Units Price per Cost Per Total Cost Per unit Total Profit
unit Unit profit

150 900 747 112,000 153 135,000

Imber- Mules

(Table 3.4. Timber Price)

Computations for Imber (Mules):

112,000 total cost / 150 units= 747 pesos

Markup price:

747 pesos * 20%= 153+747= 900 pesos

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C. Promotion

(Figure 6: CalaCulture About Us and Contact Information)

CalaCulture will promote its products using traditional and digital methods. CalaCulture will

distribute flyers everywhere and advertise on television and social media to promote its business and

products. CalaCulture will create official social media accounts on Facebook, Instagram, Twitter, Tiktok

and other platforms to show potential customers what it offers. Given that potential investors and

customers are curious about the company's and product's credibility, websites are important in this type of

promotion. The website will contain all company and product information. CalaCulture will also create a

social media app or marketplace so customers can order at their homes or globally. Additionally, we will

hire influencers to promote the products if feasible since keeping their online visibility is essential. Social

media can be used to inform buyers about business announcements and newly released products while

persuading them to buy.

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 D. Place

The physical store of CalaCulture will be situated in Red Plaza Complex in Calle Real, officially

named asJ.M. Basa Street, since it is the Central Business District of Iloilo (see Figure 7.). While the

warehouse will be situated in SGS Iloilo Warehouse right in Muelle St., which is just a minute away from the

main store’s location, as illustrated in Figure 9. This increases the exposure of the business because of the street

known for its busy and crowded area. This will increase the enterprises’ visibility, high foot traffic, better

accessibility, high competition, and networking opportunities.

(Figure 7. Images showing the vicinity map of Red Plaza Complex and the actual photo of the building)

Operation Plan

A. Operating Hours

CalaCulture will operate on the same opening hours as Red Plaza Complex itself, which is

8:00am to 8:00pm from Monday to Saturday, to maximize the accommodation of customers, especially

those who prefer to shop after their own working hours. Since the business is still small, only a few

working people are needed in the meantime. These include 1 store manager that oversees everything, 2

staff members that welcomes and assists customer, 1 cashier that processes payments, 1 delivery man to
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 deliver online orders, and 1 security guard that secures the safety of the store.

On the other hand, the business store is strictly closed during Sundays, and “Regular and Special

Holidays” to pay respect to the worker’s resting and family time. This is because CalaCulture sees the

importance of taking a break and spending quality time with loved ones in the overall mental health of

workers.

B. Operation Strategies

QUALITY CONTROL

In preparing the rattan from acquiring raw materials, its color, texture, thickness, pattern, and even

luster are strictly checked and tested for antioxidation and pest control inspection before being sent to the

warehouse for production. The same strict inspection goes for recycled textiles to ensure that the materials for

upcycling are free from any form of toxic materials.

In manufacturing, the laborers will be thoroughly taught how to choose a shoe pattern, use a

machine to cut material, make shoe pieces, machine-assemble parts and sew them together to create

footwear, and examine and clean shoes that will pass the final inspection before distribution.

The inspections in improving the process and product quality of CalaCulture products are done

manually and automated. For a basic manual inspection, only a flow chart outlines the steps as boxes of

various sorts, which are connected by arrows in order to be processed. These arrows point toward finishing

the process, but they might take a different path depending on the circumstances. This diagrammatic form

demonstrates a solution to any given model and is utilized in many different sectors for process/program

analysis, planning, documentation, and management. Control charts that are statistically designed to

determine whether the manufacturing and quality are controlled are utilized for a more thorough and bias-

free inspection. This chart aids in the identification and control of such variables by identifying deviations

31
from control lines. This chart has a line for the lower control limit, a line for the upper limit, and a line for

the average center. The control parameters are set at a standard deviation of +-3 from the zenith.

Furthermore, these control lines must be crossed by the points recorded in the Cartesian, and any deviation

from these lines indicates an anomaly that needs to be investigated or fixed. Aside from the manual flow

chart, the main purpose of adding this second automated product quality tracker is to eliminate human errors.

INVENTORY AND STORAGE STRATEGIES

To boost the inventory and storage management, CalaCulture will first invest in an inventory

management system that will allow more autonomous control over our products and inventory so that the

customers’ needs are met. This can be done by creating a transparent marketing plan that makes the

logistical and personal information of the organization available, further building the trust with customers

and improving ethical marketing practices. To avoid deficits, safety stocks will also be manufactured to

combat inventory issues in preparation for system faults; this is done by creating a maximum of 10 pairs

of shoes per laborer in one day, even when the normal target is just seven to eight pairs a day. Such a

slight increase in adding two extra pairs allows a small allowance if unexpected issues are met. Moreover,

alternative suppliers, varying distributors, or multiple transportation providers are also considered.

Business processes would also be automated so that batch tracking of schemes for all products are easily

achieved, monitored, and controlled. Also, human errors in tracking inventory would be minimized, and

processes would be simplified with a hands-off approach. Alternate sales channels, like online marketing,

would also be utilized to reassure that the products will be known to the customers, even those outside the

local communities. Lastly, data analytics shall be utilized to take advantage of optimization in terms of

knowing the cost history of the company, the shortages and surpluses, the buying trends of the customers,

and the successes and failures of the business, all of which aid in helping the company make decisions

that are both informed and can optimize the efforts and profits of the business.

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 INDUSTRY ASSOCIATION MEMBERSHIP

CalaCulture will approach industry associations to connect with other manufacturers producing

similar products. This will pave the way for efficient networking, wider exploration of new opportunities,

and a better understanding of the market, all of which contribute to the business's long-term success.

Active membership with the International Bamboo and Rattan Organization (INBAR) is a smart move,

for they promote the use of both bamboo and rattan for sustainable development, which could greatly help

our knowledge of utilizing rattan in creating better products. Moreover, being a part of the Secondary

Materials and Recycled Textiles (SMART) Association could also be a great idea to enhance further our

abilities to transform used materials into products of higher quality. These partnerships can enhance the

procurement of sustainable materials and supplies.

OPERATIONS AND SUPPLY CHAIN STRATEGIES

Raw materials for the Rattan will be purchased in local stores in Leganes that are harvested from

local Rattan farms, which will refine said materials into essential parts and will get them delivered to the

warehouse. Moreover, raw materials for the upcycled clothing shall be obtained from various thrift shops,

tailor shops, junk shops, and waste management facilities, cleaned, and sent to the warehouse for

production. For manufacturing, the skilled women laborers will weave the materials into the target

products and distribute them in bulk by land or sea to the retail locations or directly to customers. These

retailers could be situated in physical retail locations, like stalls in malls or other physical stores open

from 10 am to 5 pm, or just present online through various social media platforms. Customers would

easily purchase our products from credited retailers nationwide.

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 PRODUCTION PROCESS

CalaCulture will partner with rattan suppliers that will legally harvest rattan from nearby local rattan

farms by cutting the rattan plant, dragging the stem out of the canopy, pulling back the leaf sheaths to reveal

the cane of the rattan, cutting the cane into lengths, and bundling them before being brought out to the primary

processor. These harvester rattan canes should then be subjected to oil-curation or boiling in order to prevent

any insect or fungal attacks, speed up the process of drying, and enhance the overall color quality of the

material. A rattan material is only considered shed-ready once the stem turns yellowish in color and the weight

becomes lighter. After this, the rattan material is straightened, peeled, polished, split, and sorted to obtain the

inner core of the rattan just in time for weaving preparation. These inner cores are divided based on grade and

diameter, and the damaged ones are removed. After this, the prepared cones are brought to the CalaCulture

warehouse by road or sea if they come from a different local island, and the weaving starts. On the other hand,

materials for making products from upcycled clothing materials or textiles would be perused in bulk from

various thrift shops, tailor shops, junk shops, and waste management facilities and transported to the warehouse

for inspection and cleaning.

Unemployed women from underprivileged communities will be hired and trained to create the products

at the highest quality so that they will be able to earn an additional income while enhancing their creativity and

providing the community with stylish new shoes. CalaCulture will provide women with the facilities and

equipment to do the assigned tasks efficiently and excellently. In the start-up of the small business, five women

workers will first be hired and paid with the current minimum wage rate for service or retail establishments

employing five workers, which is Php 420.00. Each of them will then be tasked to produce about seven to eight

shoes per day for the meantime, which will be maximized within nine working hours the day. If all five

workers were to finish seven to eight shoes per day, the warehouse could create about 750 pairs per month,

which will be sent to the main distributor for selling.

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 (Figure 8. Production process flowchart)

WAREHOUSE AND SHIPPING

The main warehouse and manufacturing process of CalaCulture will be situated in SGS Iloilo

Warehouse right in Muelle St., which is just a minute away from the main store’s location. More so, such

places are well-known to be a busy-street for business. This increases exposure in the market as opposed to

established stores that already offer similar products and services, but are situated far from the target markets.

The finished products will then be delivered by vehicle with three delivery men to the main store located near

Calle Real in J.M. Basa Street, Iloilo City Proper. The business will also utilize couriers such as J&T and LBC

Express to ship the products nationwide. Sometime in the future, CalaCulture intends to open a main concept

building with a vintage retro appearance to bring the handcrafted vibes to the local people, attracting passersby

to notice the unique products that are being sold in the establishment, urging them to come inside and make a

35
purchase. Such a location would have to be downtown area or in the Megaworld space, since both places are

where most people pass by and drop by to purchase products.

(Figure 9. Images showing the map location of SGS Iloilo Warehouse and the actual photo of the building)

(Figure 10. Google Maps screenshot showing the distance between Red Plaza Complex and SGS Iloilo

somewhere either in the Warehouse)

36
Financial Plan

Table 4. Four Years Projected Income Statement

CalaCulture

Income Statement

For the Years Ended December 31, 2025-2028

2025 2026 2027 2028

Sales 7,308,000 7,527,240 7,753,057.20 7,985,648.92

Less: Cost of Sales 2,118,000 2,181,540 2,246,986.20 2,314,395.79

Gross Income 5,190,000 5,345,700 5,506,071 5,671,253.13

Less: Selling and Administrative

Expenses

Salaries Expense 1,740,000 1,792,200 1,845,966 1,901,344.98

Utilities Expense 480,000 494,400 509,232 524,508.96

Rent Expense 180,000 185,400 190,962 196,690.86

Advertising Expense 20,000 20, 600 21,218 21,854.54

Transportation Expense 240,000 247,200 254,616 262,254.48

Insurance Expense 14,400 14,832 15,276.96 15,735.27

Depreciation Expense- 4,510 4784.66 4928.20

equipment 4,645.30

Other costs 38,000 39,140 40,314.20 41,523.63

Total Selling and Administrative 2,716,910 2,798,417.30 2,882,369.82 2,968,840.92

Expense

Net Income Before Tax 2,473,090 2,547,282.70 2,623,701.18 2,702,412.21

Less: Income Tax (₱ 402,500.00 + 544,427 566,684.81 589,610.35 613,223.66

37
30% of the excess over ₱ 2,000,000.00

Net Income After Tax 1,928,663 1,980,597.89 2,034,090.83 2,089,188.55

38
 Table 5. Four Years Projected Statement of Financial Position

Calaculture

Statement of Financial Position

For the Years Ended December 31, 2025-2028

2025 2026 2027 2028

ASSETS

Current Assets:
Cash 2,795,673.00 2,879,543.19 2,965,929.49 3,054,907.37
Raw Materials Inventory 10,000.00 10,300.00 10,609.00 10,927.27
Work In Process Inventory 20,000.00 20,000.00 20,000.00 20,000.00
Finished Goods 14,510.00 14,510.00 14,510.00 14,510.00
Total Current Assets 2,840,183.00 2,924,353.19 3,011,048.49 3,100,344.64
Noncurrent Asset:
Manufacturing Equipment 62,990.00 64,879.70 66,826.09 68,830.87
Office Equipment 50,000.00 51,500.00 53,045.00 54,636.35
Furnitures and Fixtures 20,000.00 20,600.00 21,218.00 21,854.54
Less: Accumulated
Depreciation 4,510.00 4,645.30 4,784.66 4,928.20
Total Noncurrent Assets 128,480.00 132,334.40 136,304.43 140,393.56
Total Current and Noncurrent Assets 2,968,663.00 3,056,687.59 3,147,352.92 3,240,738.21

LIABILITIES AND EQUITY

Liabilities:
Utilities Payable 40,000.00 41,200.00 42,436.00 43,709.08
Total Liabilities 40,000.00 41,200.00 42,436.00 43,709.08
Owner's Equity:
Calaculture, Capital 1,000,000.00 2,928,663.00 3,015,487.59 3,104,916.92
Net Income 1,928,663.00 1,980,597.89 2,034,090.83 2,089,188.55
Calaculture, Drawing - 1,893,773.30 1,944,661.50 1,997,082.34
Total Owner's Equity 2,928,663.00 3,015,487.59 3,104,916.92 3,197,029.13

Total Liabilities and Owner's Equity 2,968,663.00 3,056,687.59 3,147,352.92 3,240,738.21

39
MANAGEMENT PLAN

A. Organizational Chart

(Figure 11. CalaCulture Organizational Chart)

40
B. Management Team

1. Director- Stephany Leeane Buyoc

 Accountable for the coordination, direction, and planning of operations and programs of the

organization.

 Decision-making: Participate in key decision-making processes, weighing the organization's

objectives, risks, and opportunities.

 Governance and Compliance: Ensure that the organization operates in compliance with applicable

laws, regulations, and corporate governance standards.

 Stakeholder Management: Interact with various stakeholders, such as shareholders, board members,

customers, suppliers, and regulatory bodies.

 Oversees and updates top management on the performance of the firm management.

2. Production Department Head- Kathleen F. Bordon

 The primary role is to assure efficiency and timely delivery of services within budget and in

accordance with industry standards.

 Resource Allocation: Oversee the allocation of resources, including manpower, equipment,

materials, and facilities, to ensure smooth and efficient production operations.

 Production Planning: Responsible for developing production plans and schedules to meet customer

demands and optimize resource utilization.

 Quality Control: Ensuring high-quality production output is a critical responsibility.

41
  Operational Efficiency: Continuously improve operational efficiency.

 Health and Safety: Ensuring a safe and healthy working environment for production personnel.

 Team Management: Lead and manage the production team, including supervisors, operators,

technicians, and support staff.

3. Marketing Department Head- Karl Frederick C. Canong

 Brand Management: Oversees the management and development of the organization's brand.

 Marketing Campaigns: Lead the planning, development, and execution of marketing campaigns to

generate brand awareness, drive customer acquisition, and promote products or services.

 Digital Marketing: With the increasing importance of digital channels, he is responsible for driving

the organization's digital marketing efforts.

 Market Research and Analysis: Conduct market research to gain insights into customer preferences,

market trends, and competitive landscape.

4. Administration Department Head- Julian P. Catalogo

 Facilities and Office Management: Overseeing the management and maintenance of the organization's

facilities, including office spaces, equipment, and infrastructure.

 Administrative Policies and Procedures: Develop and implement administrative policies, procedures,

and guidelines to ensure efficient operations and compliance with applicable regulations.

 Budgeting and Financial Management: Manage the administration department's budget, including

forecasting, allocating funds, and monitoring expenses.

 Communication and Coordination: Liaison between different departments, ensuring effective

42
 communication and coordination of administrative activities

5. Quality Assurance Manager- Vince S. Enderes

 Quality Management System (QMS) Development: Responsible for developing, implementing, and

maintaining the organization's quality management system.

 Quality Control: Oversee quality control activities to verify that products or services meet specified

requirements.

 Quality Training and Education: Develop and deliver quality-related training programs to educate

employees on quality standards, processes, and best practices.

 Supplier Quality Management: Collaborate with the procurement and supply chain teams to ensure that

suppliers and vendors meet quality requirements.

 Customer Complaints and Feedback: Handle customer complaints and feedback related to quality

issues.

6. Product Marketing Manager- Krishna Catoras

 Product Positioning and Messaging: Develop clear and compelling product positioning and messaging

that effectively communicates the unique value and benefits of the product to the target audience.

 Go-to-Market Strategy: Develop and execute go-to-market strategies for new product launches or

product updates.

 Marketing Collateral and Content Creation: Create or oversee the creation of marketing collateral,

including product brochures, datasheets, presentations, videos, and website content.

 Pricing and Packaging: Collaborate with product management and finance teams to develop pricing

strategies and determine the optimal product packaging and pricing tiers.

 Customer Insights and Feedback: Gather customer feedback and insights to understand their needs,

43
 pain points, and satisfaction with the product

7. Finance Manager-Cherry Ann Claudio

 Financial Planning and Analysis: Develop and manage the organization's financial plans, budgets, and

forecasts.

 Cash Flow Management: Oversee cash flow planning and ensure availability of funds to meet

operational and financial obligations.

 Financial Risk Management: Identify and manage financial risks that may impact the organization.

 Financial Strategy and Long-Term Planning: Contribute to the development and implementation of the

organization's financial strategy.

8. Market Analyst- Ma. Cassandra Mae Demorar

 Competitive Analysis: Analyze competitors' products, pricing, marketing strategies, and market

positioning. Identify strengths, weaknesses, opportunities, and threats (SWOT analysis) for the

organization.

 Consumer Behavior Analysis: Study consumer behavior, including purchasing patterns, preferences,

and decision-making processes.

 Market Segmentation: Segment the market based on relevant criteria such as demographics,

psychographics, behavior, and needs

 Forecasting and Demand Analysis: Develop forecasts and projections for market demand, sales, and

revenue.

 Report Preparation and Presentation: Prepare clear and concise reports, presentations, and

dashboards to communicate market analysis findings to stakeholders.

44
 References

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Avoid Them - Articles - Automation Alley.

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the-era-of-industry-4-0-and-how-to-avoid-them

Globaldata. (2021). ShieldSquare Captcha. Www.globaldata.com.

https://www.globaldata.com/store/report/philippines-womens-footwear-market-analysis/

INNÉ. (2023). INNÉ | Footwear, Accessories, Home + Objects. INNÉ. https://innestudios.com/

Population Pyramid. (2023). Population Pyramids of the World from 1950 to 2100.

PopulationPyramid.net. https://www.populationpyramid.net/philippines/2023/

Reuters. (2023, February 27). Dow said it would recycle our shoes. We found them for sale in Indonesia.

RAPPLER. https://www.rappler.com/world/global-affairs/dow-inc-says-recycling-shoes-found-

ended-up-indonesia/

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Sperry. (2023). Sperry Boat Shoes for Men, Women, & Kids. Sperry. https://www.sperry.com/en/home

Worldometer. (2023). Philippines Population (2020) - Worldometer. Www.worldometers.info.

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population/#:~:text=The%20current%20population%20of%20the

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