FEASIBILITY STUDY OF SOAP ESSENTIAL

An Undergraduate Project Paper Presented to the Faculty

of the Area of Accountancy and Allied Courses
Meycauayan College

In Partial Fulfillment
Of the Requirements for the Degree of
Bachelor of Science in Accountancy and
Bachelor of Science in Accounting Information System

By:
Brin, Gerard O.
Burlaos, Ronalyn Irenea
Delfin, Ma. Jana L.
Morante, Karlene Mae
Morquianos, Daniela Marie
Rodriguez, Rizza Mae D.C.

July 2022
 CERTIFICATION

This project paper titled feasibility study for “SoapEssential” prepared and submitted
by Gerard O. Brin, Ronalyn Irenea Burlaos, Ma. Jana L. Delfin, Karlene Mae Morante
Daniela Marie Morquianos and Rizza Mae D.C. Rodriguez, in partial fulfillment of the
requirements for the degree of Bachelor of Science in Accountancy and Bachelor of Science
in Accounting Information System has been viewed and hereby endorsed for acceptance and
approval.

DR. AIREEN N. IÑIGO, CPA

Project Paper Instructor/Adviser

APPROVAL SHEET
PANEL OF EXAMINERS

Approved by the Committee on Oral Examination

MENANDRO MANALO, MBA

Panel Chair

Dr. EDNA DE OCAMPO HONEYLYN PINEDA, CPA

Panel Chair Panel Chair

Accepted and approved in partial fulfillment of the requirements for the degree of
Bachelor of Science in Accountancy and Bachelor of Science in Accounting
Information System.

MR. GERARDO OROSCO, CPA, MBA, FRIACC

College Dean in Area of Accountancy & Allied Courses

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 CERTIFICATE OF ORIGINALITY

The Proponents, hereby certify that this PROJECT PAPER is their original work to
the best of their knowledge and belief. It contains no material previously written or published
by another person or organization nor any material which has been accepted for award of any
material which has been accepted for any other degree of diploma from a university or
institution of higher learning, except where due acknowledgement is made thereof.

Furthermore, the proponents declare that the intellectual content of this PROJECT
PAPER is the product of their original work although they received assistance from others on
the manner of organization, presentation, language and style.

List of Members:
Brin, Gerard O.
Burlaos, Ronalyn Irenea
Delfin, Ma. Jana L.
Morante, Karlene Mae
Morquianos, Daniela Marie
Rodriguez, Rizza Mae D.C.

Attested by:

July 2022

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 TABLE OF CONTENTS

Title page.....................................................................................................................................i
Certification...............................................................................................................................ii
Approval Sheet...........................................................................................................................ii
Certificate of Originality...........................................................................................................iii
Table of Contents......................................................................................................................iv
List of Tables..........................................................................................................................viii
List of Figures...........................................................................................................................ix
List of Appendices...................................................................................................................xii
Bibliography............................................................................................................................lxi

I. Project Summary
Highlights / Summary of the Study........................................................................................1

Proposed Name of the Enterprise...........................................................................................2

Vision.....................................................................................................................................2

Mission...................................................................................................................................2

Objectives of the Study..........................................................................................................3

Long-term Objectives.............................................................................................................3

Short-term Objectives.............................................................................................................3

Location..................................................................................................................................4

Proponents of the business and legal structure.......................................................................7

Plant size and Factory.............................................................................................................8

Brief History of the Business.................................................................................................9

Description of the Business....................................................................................................9

Business Model......................................................................................................................9

Business Logo......................................................................................................................11

Product Tagline....................................................................................................................12

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II. Market Viability
Growth and Trends...............................................................................................................13

PESTEL Analysis.............................................................................................................13

Porter’s Five Forces of Competition.................................................................................25

SWOT ANALYSIS..........................................................................................................33

TOWS ANALYSIS..........................................................................................................39

Competition..........................................................................................................................43

Industry Size.........................................................................................................................43

Competitors Analysis...........................................................................................................43

Direct Competitors............................................................................................................44

Indirect Competitors.........................................................................................................45

Market Segmentation............................................................................................................47

Target Market.......................................................................................................................49

Marketing Research..............................................................................................................50

Research Method..................................................................................................................50

Description of Respondent................................................................................................50

Sample of the Study (Sample Population)........................................................................51

Instrument and Validation................................................................................................52

Presentation and Analysis of Data....................................................................................53

Demand and Supply Analysis..............................................................................................83

Total Demand...................................................................................................................99

Supply Analysis..............................................................................................................104

Demand and Supply Analysis.........................................................................................119

Marketing Strategies...........................................................................................................122

A. Product Strategy......................................................................................................122

B. Pricing Strategies.....................................................................................................124

C. Place / Location Strategy.........................................................................................127

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 D. Promotional Strategy...............................................................................................132

E. Positioning Strategy.................................................................................................136

III. Technical Viability

The Product........................................................................................................................137

Manufacturing Process.......................................................................................................142

Plant Size and Production Schedule...................................................................................151

Machinery and Equipment.................................................................................................153

Plant Location.....................................................................................................................179

Plant Layout........................................................................................................................182

Raw Materials and Supplies...............................................................................................186

Estimated Utilities Consumption........................................................................................191

Waste Disposal...................................................................................................................193

Production Cost..................................................................................................................194

Product Mark-up.................................................................................................................195

Product Mark-Up................................................................................................................211

IV. Management and Organization Viability

Forms of Business Ownership............................................................................................212

Capitalization......................................................................................................................212

Organizational Structure.....................................................................................................213

Manpower Requirements....................................................................................................213

Qualification Standards......................................................................................................214

Job Specifications...............................................................................................................216

Selection Process................................................................................................................221

Job Requirement, Orientation & Training..........................................................................222

Compensation and Benefits Staffing and Cost...................................................................225

Organization Policies..........................................................................................................227

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 Legal Requirements............................................................................................................231

Projected Timetable............................................................................................................250

V. Financial Viability
Sources of Funds................................................................................................................251

Project Cost / Initial Capital Requirements........................................................................252

Break-even Point Analysis.................................................................................................253

Sales Forecast.....................................................................................................................254

Financial Assumptions.......................................................................................................258

Projected Income Statement...............................................................................................259

Projected Statement of Financial Position..........................................................................261

Projected Cash Flow...........................................................................................................263

Projected Changes in Owner's Equity................................................................................266

Projected Comparative Financial Ratios............................................................................267

Projected Notes to Financial Statements............................................................................269

Projected Payback Period...................................................................................................295

VI. Critical Risks Factors and Exit Strategy

Potential Barriers/ Assessment of Risk..............................................................................296

Contingency Plan to the Potential Barriers.....................................................................300

Compliance Risk.............................................................................................................301

Future Plan......................................................................................................................305

Exit Strategy...................................................................................................................306

VII. Socio-Economic Study

A. Job Opportunities to the Employees...........................................................................307

B. Contribution to the Philippines Economy...................................................................308

C. Other Beneficiaries..................................................................................................309

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 Social Responsibility......................................................................................................309

Sustainability..................................................................................................................310

Regulations and Environmental Issues...........................................................................310

VIII. List of Tables

Table 1. SWOT Analysis

Table 2. TOWS Matrix

Table 3. Direct Competitors

Table 4. Indirect Competitors

Table 5. Market Segmentation

Table 6. Target Market

Table 7. Samples of the Study

Table 8. Demand Analysis for Potential Consumers

Table 9. Supply Analysis

Table 10. Demand and Supply Analysis for 20 Sheets per Pack

Table 11. Demand and Supply Analysis for 30 Sheets per Pack

Table 12. Specifications of Manufactured Products

Table 13. Pricing Strategy

Table 14. Marketing Activities

Table 15. Specifications of Products to be manufactured

Table 16. Production Schedule

Table 17. Projected Production Supply

Table 18. Estimated Utilities Consumption

Table 19. Production Cost

Table 20. Product Mark-Up for 20 sheets

Table 21. Product Mark-Up for 30 sheets

Table 22. Projected Timetable

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Table 23. Benefits to Employees

Table 24. Tax Paid to Government

IX. List of Figures

Figure 1. Business Model.........................................................................................................10

Figure 2. Logo of the business.................................................................................................11

Figure 3. Porter’s Five Forces of Competitive Analysis..........................................................25

Figure 4. Profile of the Respondents in terms of Age..............................................................53

Figure 5. Profile of the Respondents in Terms of Location.....................................................54

Figure 6. Profile of the Respondents in terms of Sex..............................................................55

Figure 7. Profile of the Respondents in terms of Marital Status..............................................56

Figure 8. Profile of the Respondents in terms of Highest Educational Attainment.................57

Figure 9. Potential Consumer’s Response in terms of Familiarity of the Product..................58

Figure 10. Potential Consumer's Response in terms of Willingness to Purchase the Product59

Figure 11. Potential Consumer’s Response in terms of Market Share....................................60

Figure 12. Potential Consumer's Response in terms of Frequent Purchase from Other Shop. 61

Figure 13. Potential Consumer’s Response in Terms of Preferred Scent................................62

Figure 14. Potential Consumer’s Response in terms of Preferred Sheets per Pack of the
Product.....................................................................................................................................63

Figure 15. Potential Consumer’s Response in terms of Preferred Pack of the Product..........64

Figure 16. Potential Consumer’s Response of Frequency of Purchasing 20 Sheets per Pack of
Lavender Scent.........................................................................................................................65

Figure 17. Potential Consumers of Response of Frequency of Purchasing 30 Sheets per Pack
of Lavender Scent....................................................................................................................66

Figure 18. Potential Consumer’s Response of Frequency of Purchasing 20 Sheets per Pack of
Sweet Orange Scent.................................................................................................................67

Figure 19. Potential Consumer’s Response of Frequency of Purchasing 30 Sheets per Pack of
Sweet Orange Scent.................................................................................................................68

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Figure 20. Potential Consumer’s Response to Frequency of Purchasing 20 Sheets per Pack of
Lemon Scent.............................................................................................................................69

Figure 21. Potential Consumer’s Response to Frequency of Purchasing 30 Sheets per Pack of
Lemon Scent.............................................................................................................................70

Figure 22. Potential Consumer’s Response to Frequency of Purchasing 20 Sheets per Pack of
Mint Scent................................................................................................................................71

Figure 23. Potential Consumer’s Response to Frequency of Purchasing 30 Sheets per Pack of
Mint Scent................................................................................................................................72

Figure 24. Potential Consumer’s Response to Frequency of Purchasing 20 Sheets per Pack of
Cherry Blossom Scent..............................................................................................................73

Figure 25. Potential Consumer’s Response to Frequency of Purchasing 30 Sheets per Pack of
Cherry Blossom Scent..............................................................................................................74

Figure 26. Potential Consumer’s Response to Considering the Cost of Purchasing 20 Sheets
per Pack....................................................................................................................................75

Figure 27. Potential Consumer’s Response to Considering the Cost of Purchasing 30 Sheets
per Pack....................................................................................................................................76

Figure 28. Potential Consumer’s Response to Preference considering when Buying Paper
Soap..........................................................................................................................................77

Figure 29. Potential Consumer’s Response in Terms of Promotion........................................78

Figure 30. Potential Consumer’s Response in Terms of Preferred Promotion........................79

Figure 31. Potential Consumer’s Response in Terms of Preferred Platform to Purchase the
Product.....................................................................................................................................80

Figure 32. Potential Consumer’s Response in Terms of Proposed Distribution Place of the
Business....................................................................................................................................81

Figure 33. Potential Consumer's Response in Terms of other Preferred Place aside from the
Proposed Place of the Business................................................................................................82

Figure 34. Flow Chart of Manufacturing of the Soap Essential............................................142

Figure 35. Flow of Order for Walk-in Customers..................................................................145

Figure 36. Flow of Order for Online Customers Transaction................................................146

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Figure 37. Standard Operating Procedure..............................................................................149

Figure 38. Plant Location.......................................................................................................180

Figure 39. Plant Location.......................................................................................................181

Figure 40. Plant Layout..........................................................................................................182

Figure 41. Plant Layout - Outside View................................................................................183

Figure 42. Plant Layout - Inside View 1................................................................................183

Figure 43. Plant Layout - Inside View 2................................................................................184

Figure 44. Plant Layout - Inside View 3................................................................................184

Figure 45. Plant Layout - Inside View 4................................................................................185

Figure 46. Plant Layout - Inside View 5................................................................................185

Figure 47. Organizational Chart.............................................................................................212

Figure 48. Selection Process..................................................................................................219

List of Appendices

APPENDIX A: Sample Documents.....................................................................................xii

APPENDIX B: Downloadable Forms..............................................................................xxvii

APPENDIX C: Other Documents..................................................................................xxxvii

APPENDIX D: Curriculum Vitae...................................................................................xxxix

APPENDIX E: Letter..........................................................................................................xlv

APPENDIX F: Survey Questionnaire................................................................................xlvi

APPENDIX G: Documentation of Survey Questionnaire....................................................lv

Bibliography...........................................................................................................................lxi

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