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DR. YANGA’S COLLEGES, INC.

COLLEGE OF BUSINESS ADMINISTRATION

PROPOSING PEEL PROTECT FOR SHARED VALUE

In partial fulfilment of the subject requirements in


CGEEth123: Ethics
2nd Semester A.Y. 2023-2024

Submitted to
MICHAEL S. YANGA, MBA

Submitted by:
AMADOR, JOICE ELLAINE C.
CAPALAD, PRINCESS R.
LAUDE, ALYANNAH FELICITY M.
LOMIBAO, LORRAINE JOYCE Q.
ORONAN, EMIL RUSSEL B.
PASCUA, JUL HANNAH L.
REYES, CECILIA FRANCHEZKA D.L

BSBA – 1A
Bachelor of Science in Business Administration

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TABLE OF CONTENTS

Sections Pages

TITLE PAGE 1
LIST OF TABLES 3
LIST OF FIGURES 4
INTRODUCTION 5
CSV PRODUCT/SERVICE DESCRIPTION 7
Name Description 7
Product Description 8
Features 9
Customers 10
Consumers 10
Target Market 10
SOCIETAL BENEFIT 13
ECONOMIC BENEFIT 15
Market Opportunity 15
Profitability and Pricing Strategy 15
Projected Cost 17
Sales Forecast 18
COMPARATIVE ADVANTAGE OF THE PRODUCT 20
Company Profile of the Competitors 20
Product 21
Product Features 22
Unique Selling Proposition 23
Placement 24
Pricing 25
Promotion 27
REFERENCES 31

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LIST OF TABLES

Tables Pages

Table 4: Annual Projected Cost 17


Table 5.1: Product Line 20
Table 5.2: Product Features 21
Table 5.3: Unique Selling Proposition 22
Table 5.4: Product Placement 22
Table 5.5: Pricing 23
Table 5.6: Promotion Strategies 25

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LIST OF FIGURES

Figures Page

Figure 1.1: Product Logo 7


Figure 1.2: Product Packaging and Sizes 9
Figure 1.3: Target Market 10
Figure 4.1: Sales Forecast 17
Figure 4.2: Pricing Analysis for 50mL 25
Figure 4.3: Pricing Analysis for 20mL 24
Figure 4.4: Pricing Analysis for 10mL 25
Figure 5.1: Belo Company’s Top Products 19
Figure 5.2: FairySkin Top Products 20

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I. INTRODUCTION

Having been located near the equator, the Philippines is a tropical country that
encounters two—wet and dry—seasons, with sunny days being better manifested most
of the year. This prompts Filipinos’ shared interest in beach trips, treks to the mountains,
and other activities that expose and soak them under the sun. However, unlike the
previous years, the country is experiencing heightened and unusually hot weather during
its summer season, which exhibits an exceedance of a threshold heat index (Agence
France-Presse, 2024). Such an extreme and record-high heat accentuates a common
fact that overexposure to the sun, particularly to its Ultraviolet radiation rays, may bring
several health risks, which include premature skin aging, wrinkling, skin cancer,
melanoma, and even a compromised immune system. With this growing awareness
driven by the collective efforts of the medical and wellness community in educating
consumers about these dangers, the industry market is witnessing a surge in the demand
for sun protection products, which is among the vast recommended measures to combat
the said damaging effects of UV rays (Statista, n.d.). Corollary to this, the sun and skin
care product market in the country is growing and still projected to grow at a rapid pace
in the forthcoming years attributed to other factors, such as the rise in fashion
consciousness and the emerging trend of investing in skin care products, such as acne
treatments, face masks, facial cleansers, and facial moisturizers among Filipinos, who
are keen to maintain a healthy and youthful appearance, more female working population
exerting extra efforts on their well-being, prolonged beauty, and change in lifestyle, and,
lastly, the increasing interest of men in personal grooming (Allied Market Research,
2020). This manifested the global sunscreen market growth over the years and the
intensified need for the product, catered to the specific needs and preferences of different
demographics. However, noting the alarming heat condition in our country, which
highlights the importance of sun protection products and notwithstanding the ocean of
brands offering them, the research proponents identify an observed limitation—sun
protection products can be expensive as defined by their ingredients (Sparks, 2022). It
might limit the purchasing power of various social classes to avail the product regardless
of its significance, especially those with little to no disposable income to spend.
On the other hand, humans are not the only group experiencing the negative
impact of exposure to sunlight and hot temperatures. Among these is the sped-up
ripening process of bananas whenever excessive heat is perceived (Can Bananas Ripen
Really Fast? - Have a Plant, 2015), making them easily bruised, spoil more rapidly and
develop an insipid taste and split open at the skin ends (Bananas – Transport Informations
Service, n.d.). This connotes that during this period of prevalent and extreme heat index,
bananas are faster to rot; hence, more banana waste is more likely to be generated. In
fact, Rivadeneira et al. (2023) stated that the Philippines, the third largest producer of
bananas, generates saba banana peel waste in large quantities, encompassing over
400,00 metric tons in 2020. This massive waste that is often discarded may pose
environmental and pollution problems. One mitigating approach to address the matter of
these resources with low commercial value is to convert them to high-value outputs that
improve the overall economics of processing units (Padam et al., 2014).

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Suffice it to say the research proponents had aimed at the possibility of producing
a sun protection product that will utilize banana peel as its main component, further
responding to this tripartite objective: to cater to the increasing demand for sun protection
products, to develop a good-quality skin care cosmetic that is affordable among almost
every social class; and, to lessen the possible environmental risks imposed at the
disposal of banana wastes. Peel Protect is perceived to be both a profitable and socially
inclined initiative. The researchers foresee generating positive leads for the business as
Bhandari (2020) anticipated the sun-protected segment to be the fastest growing segment
in the market along with the soaring tourism industry in the country, leading to an increase
in outdoor activities. The country has, likewise, experienced stable economic growth in
recent years, which may lead to an increased disposable income for many households.
Meanwhile, Peel Protect is driven by a commitment to reducing the emissions of
greenhouse gases that will lead to radical changes in our climate, namely a warmer
atmosphere, warmer and more acidic oceans, major changes in precipitation patterns,
and more. The proponents are sophisticated on the future outlook and current trends that
will shape its progression. In doing so and sieving out future consumer preferences and
market dynamics, Peel Protect will be able to position itself strategically to capitalize on
these emerging opportunities and solidify its position as a model of shared value.
It esteems itself to become a commercial product of purpose—for the community in need
and the environment we live in.
.

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II. CSV PRODUCT/SERVICE DESCRIPTION

Figure 1.1 Product Logo

Name Description

“Peel Protect” represents a breakthrough in skincare, merging the richness of


nature with modern protection. This innovative product marries the nourishing essence of
banana peels with the defense of sunscreens and moisturizers. The name itself, “Peel
Protect,” speaks volumes of its comprehensive benefits and functionality. It’s more than
just skincare—it’s a commitment to well-being, empowering users with the confidence to
embrace the outdoors, assured by the product’s formidable protective properties. With
“Peel Protect,” users are equipped to face the sun, knowing their skin is safeguarded
against UV damage and environmental aggressors, ensuring a complexion that’s not only
protected but also radiantly healthy.
The idea behind using the word “peel" stands for a meaningful association with the
untapped potential of natural resources that are seen as not used just as trash but the
truth that they can offer numerous benefits when applied. The idea is to encourage people
to imagine the revitalizing qualities of fruit peels, like those from bananas, which can help
rejuvenate and heal the skin barrier. Innovatively incorporating these natural ingredients,
the products gain a sense of authenticity that is highly desired by those who prefer organic
and healthy skincare options.
In addition to that, the inclusion of 'protect' in the name highlights the product's
commitment to delivering a safe and gentle experience. It suggests that Peel Protect
ensures a seamless and pleasurable application, leaving the skin feeling supple,
moisturized, and well-cared for. It reassures consumers of their freedom to embrace the
outdoors, unburdened by concerns of the sun’s harshness. In essence, Peel Protect is a
clarion call to “Feel Protected”, embodying a broader vision of care that empowers
consumers to live fully and confidently.

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Product Description

Incorporating sunscreen into the daily skincare regimen has become essential for
its role in shielding against harmful UV rays. Yet, the expense associated with sunscreen
poses a barrier for those in outdoor occupations, like farming, working on construction
sites, street vendors, riders, and many more compelling them to rely on clothing like hats,
long sleeves, and pants for protection. While these garments offer a degree of defense,
they fall short of completely averting the risks of sun exposure, which include early signs
of aging, sunburns, and the threat of skin cancer. Therefore, developing affordable
sunscreen products that cater to this demographic is vital in enhancing their sun
protection, safeguarding their long-term health, and ensuring everyone has access to
effective sun protection—a motivation that compelled the research proponents towards
the development of the product.
This innovative sunscreen makes use of organic and skin-friendly elements, such
as fresh banana peel. The Philippines’ tropical climate contributes to a plentiful supply of
banana peels, rendering them a readily available resource. Banana peels are rich in
phenolics, which possess potent antimicrobial and antioxidant properties. These
properties help safeguard the skin against sun damage and free radicals. Additionally,
the high content of potassium, zinc, and iron are moisturizing properties of banana peels
making them beneficial for dry skin (Cleveland Clinic, 2024). Moreover, the sunscreen
formulation includes a modest amount of Titanium Dioxide, which forms a protective film
over the skin to fend off UV rays (Sanke, 2023). This is complemented by Octocrylene,
which offers wide-ranging protection, aiding in the prevention of sunburn, early aging of
the skin, and typical indicators of sun damage, including wrinkles and dark spots
(MacLeman, 2022). The product also integrates a variety of standard sunscreen
ingredients to enhance skin defense.
When choosing the right sunscreen, consumers often look at the SPF level.
According to the US Food & Drug Administration (FDA), using a broad-spectrum
sunscreen with an SPF of at least 15 is recommended, and it should be reapplied every
two hours. For those with fair skin, the FDA advises increasing the SPF to between 30
and 50, with SPF 50 being the maximum official guideline. The researchers and experts
in the laboratory have ensured that Peel Protect has an SPF of at least 30, and it may go
up to SPF 50 to cater to the country's tropical climate and high UV index.
As part of its legal and ethical responsibility to the public, the researchers are
sophisticated with the knowledge that clinical trials are an integral part of the drug
development process. Hence, they put Peel Protect's clinical trial phase on a high
pedestal part of the development process, with a rigorous evaluation approach that
involves a range of laboratories and specialists that the team closely works with, ensuring
that its trial is conducted in a safe, ethical, and transparent manner and that the results
are accurate and reliable. The data collected from these trials is carefully analyzed to
measure the benefits and risks of the treatment and to ensure that any potential side
effects are identified and addressed. Through these stringent evaluation processes, Peel
Protect is able to provide patients with safe and effective treatments that can help them
live healthier, happier lives.

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Features

Figure 1.2 Product packaging and Sizes


Convenience, style, and functionality—the innovative packaging design introduced
caters to specifically complement the lifestyle, preferences, and requirements of its
contemporary consumers. Available in three sizes upon its launch—50 mL, 20 mL, and
10 mL—it addresses the needs of individuals who seek mobility and convenience in their
purchases. Meanwhile, the design offers both tube and sachet formats in light to enhance
portability and ease of use for consumers on the move. The proponents likewise
intentionally turned the packaging to a vibrant yellow that serves a two-fold purpose—to
add a positive and playful element that is attractive to customers and to evoke its
distinctive nature, which is the use of bananas.
Meticulously developed, Peel Protect goes beyond its visual appeal wherein
customers can expect the product to be informative, with its product features, ingredients,
and usage instructions presented on the back. This is particularly beneficial for first-time
users or individuals with sensitive skin, allowing for informed usage of the product.

Target Market

Figure 1.3 Target Market

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Customers
Purchasers, or customers, are individuals who acquire a product, such as Peel Protect
sunscreen. These customers may buy the sunscreen for their own use or someone else, like a
parent purchasing it for their children. The typical customer demographic for Peel Protect spans
the active working demographic, usually ranging from eighteen (18) to sixty-five (65) years old.
These individuals possess the financial means to procure the product. Their ability to purchase is
influenced by a variety of economic factors according to Michaels (2023), including the rate of
inflation, employment status, the prevailing currency exchange rates, the accessibility of credit,
prevailing interest rates, the balance of supply versus demand, taxation policies, and the overall
pricing landscape.

Consumers
End-users, or consumers, are those who utilize products like Peel Protect sunscreen for
personal protection against the detrimental effects of UV radiation. General guidelines from
authoritative bodies such as the Skin Cancer Foundation and the American Academy of Pediatrics
advise that sunscreen usage is essential for everyone older than 6 months to mitigate the long-
term harm from solar exposure. Nonetheless, Peel Protect’s formulation, which includes specific
active compounds, is currently recommended for individuals aged eleven (11) and above. This
recommendation is provisional as ongoing clinical evaluations are being conducted to ascertain
whether the age threshold can be safely lowered. When assessing the suitability of sunscreen for
consumers, it’s crucial to consider the possibility of allergic reactions to components such as
avobenzone, oxybenzone, and octocrylene, which are known to potentially induce contact
dermatitis, manifesting as skin irritation, redness, and rashes (Europe PMC, n.d.). To prevent
such adverse reactions, it is advisable to perform patch tests, which involve applying a small
amount of the product to a discreet skin area and monitoring for any signs of irritation, particularly
when the area is exposed to sunlight. This step is vital in ensuring consumer safety and
compatibility with the product.

Target Market
The target market for Peel Protect consists of individuals who prioritize sun
protection while also caring for their skin's health and purchasing power. These people
are the consumers and customers of Peel Protect aim to reach:
a. Budget-Conscious Consumers
According to Mishra (2024) It needs to serve those who are mindful of their spending,
providing efficient sun defense that doesn’t burden their finances. By presenting
sunscreens at accessible prices, businesses can reach a broader audience, including
many in emerging economies who face intense sunlight yet have modest financial
resources, and who might not have considered sunscreen an affordable option before.

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b. Individuals with Sensitive Skin
Peel Protect is a comforting option for those who find regular sunscreens irritating. Its
organic, mild composition is designed to offer protection while ensuring ease and well-
being, reflecting the brand’s dedication to nurturing and gentle care. A study by Sajinčič
et al. (2021) examining consumer behavior towards sunscreen revealed a preference for
organic ingredients in skincare. The research indicates an increasing demand for organic
sunscreens, particularly among consumers with sensitive skin, attributed to the
associated health and ecological advantages.
c. Outdoor Workers
Peel Protect is engineered to meet the intense needs of those who labor under the
sun, such as farmers, construction workers, riders, street vendors, and many more,
offering a robust, hydrating sunscreen that’s easy to apply and lasts throughout the day.
This aligns with the brand’s vision of delivering practical and efficient sun protection. A
pilot study by Keurentjes et al. (2022) in the Netherlands highlighted that outdoor
construction workers, who are more exposed to ultraviolet radiation due to their work
environment, showed a low usage of sunscreen despite its requirement at work due to
the expense associated with it. Notably, while over three-quarters of these workers
recognized the dangers of sun exposure, their sun-safety practices were lacking. The
research underscored the importance of creating strategies to promote regular sunscreen
use among outdoor workers.
d. Students
Seamlessly integrating into students’ dynamic routines, Peel Protect offers a broad-
spectrum formula that’s both light and effective for everyday application, showcasing the
brand’s commitment to easy-to-use and dependable sun defense. Market projections by
Statista indicate that the Sun Protection market in the Philippines is expected to expand
by 1.04% from 2024 to 2028, reaching a market volume of US$44.30 million by the end
of the forecast period. The growth in demand for sun protection products is attributed to
the Philippines’ tropical weather conditions and a significant incidence of skin cancer.
e. Athletes
The sunscreen is designed for high performance, offering robust protection to match
the brand’s goal of safeguarding health and enhancing athletic performance under the
sun. Athletes spend extended periods outdoors during training and competition.
According to a report by Cognitive Market Research titled “Sports Sun Care Market
Report 2024 (Global Edition),” the demand for specialized sunscreens tailored to athletes
and outdoor enthusiasts is influenced by various market forces and consumer needs. The
report covers the period from 2019 to 2023, with projections extending from 2025 to 2031.

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III. SOCIETAL BENEFIT
The effectiveness of sunscreen derived from banana peels depends on engaging
multiple stakeholders and ensuring it offers benefits to each party. This section is
intended to present an analysis of the potential advantages of Peel Protect when it comes
to society:

a. Banana Farmers and Agricultural Cooperatives

Increased Revenue Stream

The innovative use of banana peels in the production of Peel Protect sunscreen
opens up an entirely new market opportunity for what is traditionally considered a waste
product. This unexplored application has the prospect to significantly boost the income of
farmers and communities involved in banana cultivation. By entering into contracts with
Peel Protect, these farmers and communities can secure a reliable secondary source of
income. This diversification strategy could substantially mitigate their financial
vulnerability that results from exclusive dependence on the sales of banana fruit, which
are subject to the whims of market fluctuations. Such an approach not only promotes a
more sustainable use of agricultural by-products but also contributes to the economic
resilience of banana growers (Department of Agriculture, 2021).

b. Waste Management Companies and Local Government Units (LGUs)

Reduced Waste Management Costs

In the Philippines, banana peels constitute a considerable fraction of organic


waste. The innovative approach of repurposing these peels for the production of
sunscreen presents a viable solution that alleviates the stress on landfill sites. Not only
that, this strategy significantly reduces the management expenses incurred by Local
Government Units (LGUs) and companies specializing in waste management, according
to a study conducted by EcoWaste Coalition (n.d.). This not only addresses the issue of
organic waste accumulation but also introduces an eco-friendly alternative in the
sunscreen market, underscoring the importance of sustainable waste management
practices.

Environmental Sustainability

Redirecting banana peels away from landfill sites contributes significantly to the
reduction of methane emissions, thus fostering the development of a more circular bio-
economy. This approach is in harmony with the sustainability objectives established by
the Philippine government, as detailed in the Philippine Development Plan, authored by
the National Economic and Development Authority in 2017. Through such
environmentally conscious practices, the Philippines is making strides towards achieving
a more sustainable and eco-friendly economic model, reflecting a commitment to
preserving the environment for future generations while promoting economic
development.

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c. Sunscreen Manufacturers

Unique Selling Proposition (USP)

Peel Protect product, formulated from banana peels presents a unique selling
proposition within the market, capable of drawing the attention of consumers who
prioritize ecological sustainability and prefer natural products. According to Chen, Y., &
Chen, T. (2021), this distinctive characteristic has the potential to elevate market share
and enhance brand visibility, appealing to a demographic that values innovation in
environmental friendliness and natural ingredients. The incorporation of such an
ingredient not only differentiates the product from competitors but also aligns with growing
consumer trends towards sustainability and health consciousness, positioning the brand
as a leader in innovative, eco-friendly solutions.

d. Consumers

Affordability

Marionnet et al. (2022) highlight the innovative possibility of employing banana


peels as a cost-effective alternative to traditional sunblock products. This development
holds significant promise for enhancing the affordability of sun protection
measures, especially within low-income communities in the Philippines. By facilitating
greater access to effective sun protection, this approach stands to substantially
improve public health outcomes. It proposes a sustainable and economically viable
solution that could revolutionize the accessibility of essential dermatological care in
regions where sun exposure poses a serious health risk.

Sustainability and Natural Appeal

The tendency among consumers to prefer environmentally friendly products is


growing. In alignment with this trend, the introduction of a sunscreen formulated from
banana-based components presents a groundbreaking solution.This approach not
only aligns with the consumer preference for eco-conscious products but
also emphasizes the use of natural ingredients for sun protection. This shift towards
integrating natural ingredients like bananas in sun care products underscores the
potential for sustainable and effective sun protection measures (Natural Products
Association, 2023).

e. Government Agencies (Department of Trade and Industry (DTI), Department


of Science and Technology (DOST))

As a stakeholder in the banana peel industry, the government is very important.


Given that it levies taxes on the company and sets regulations governing its
operations, this indicates that the government is engaged in the enterprise. The
government is interested in the business's success since it boosts employment and the
economy. Thus, through taxation and economic growth, the government gains from the
banana peel business's success as well.

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Job Creation and Economic Development

The initiation of an industry focused on the production of Peel Protect derived from
banana peels has the potential to generate employment opportunities across various
sectors, including manufacturing, scientific research, and agricultural practices. Such a
development is in harmony with the objectives of economic advancement and the creation
of job opportunities, as delineated in the strategies of the Department of Trade and
Industry (2020). This venture not only accentuates the creative use of agricultural by-
products but also aligns with the broader governmental goals aimed at fostering economic
growth and enhancing employment rates within the country.

Innovation and Technological Advancement

The process of research and development that is necessitated by this product


serves as a motivation for innovation within the science and technology sphere of the
Philippines. This endeavor could pave the way for additional advancements in the
field, with the possibility of garnering support from the Department of Science and
Technology (DOST). Such developments are crucial for the ongoing evolution of scientific
and technological capabilities within the nation.

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IV. ECONOMIC BENEFIT
This section is dedicated to highlighting the potential economic benefits that
the shareholders of the company may realize as Peel Protect enters the continuously
growing industry market of sun protection and skincare products. The following shall
analyze if the product can generate leads and in what considerations the possibilities fall
into. Weighing the economic advantages of Peel Protect is an important aspect of this
proposal, as it embodies the other characteristics of a CSV product.
Market Opportunity
The development of the product at hand confers numerous advantages to the
corporation and its shareholders, presenting a distinctive selling proposition that
distinguishes the firm within the highly competitive skincare industry. This innovative
approach draws the attention of consumers who are increasingly seeking
environmentally sustainable and natural products, thereby enhancing
the company's appeal amongst a demographic that values eco-friendly ingredients. Such
differentiation not only broadens the company’s consumer base but also significantly
elevates sales volumes, culminating in augmented revenue streams and profitability
margins (Smith, 2022). Moreover, the incorporation of banana peels into the product
lineup bolsters the corporation's image as a socially responsible entity committed to
environmental stewardship, which, in turn, cultivates consumer trust and loyalty. This
strategic positioning, therefore, results in shareholders experiencing appreciable returns
on their investments as the corporation captures a larger segment of the market and
realizes an upsurge in profitability, fueled by a surge in consumer demand and a positively
enhanced brand perception.
Profitability and Pricing Strategy
Cost-Competitive Production
Banana peels, as outlined in the research conducted by Langthaler et al. (2022),
represent an easily accessible and potentially more economical source of raw material in
contrast to various conventional ingredients used in sunscreen production. This utilization
of banana peels could result in the manufacturing of sunscreens at a reduced cost,
thereby potentially enhancing the profitability margins for producers. The implications of
such a shift towards utilizing banana peels could be significant, offering a sustainable and
cost-effective alternative to the sunscreen industry, which is continually seeking
innovative ways to reduce production costs while maintaining product efficacy.

Global Recovery and Investor Optimism


Despite the undeniable presence of intense competition within the market, the
emerging trend toward global economic recovery has significantly strengthened investor
confidence, particularly in sectors like cosmetics and personal care. This sector, in
particular, is witnessing a surge in growth, driven by a marked shift towards sustainability
and eco-friendly products, appealing to the changing preferences of consumers. The
forward momentum in the global market, as described by notable industry analysts Smith
and Lee (2022), stresses not just a general interest in sustainable products

15
and services, but a pronounced and continued interest in the cosmetics and personal
care market. This industry's focus on sustainability highlights a broader change in
consumer preferences and signals a wider acceptance and potential for new investments
in eco-friendly innovations within this sector. According to insights from Smith and Lee,
the inclination toward sustainable investments, particularly in cosmetics and personal
care, is not a fleeting trend but a substantial movement, expected to attract a
considerable influx of new investments into the field in the foreseeable future. This
growing optimism among the investor community, especially towards the cosmetics and
personal care market, is seen as a catalyst for fostering additional pathways for growth,
innovation, and development, strengthening the market's position further.
Lead-generating Pricing
The introduction of Peel Protect to the public not only marks the product as a
pinnacle of sustainability but also provides a solid argument for implementing lead-
generating pricing, still making it accessible to the masses. According to Chen & Chen
(2021), the current consumer landscape is leaning more towards supporting products
aligned with their ethical and environmental standards yet does not overpower their
budget for their basic needs. This shift in consumer behavior opens up a significant
opportunity to use strategic marketing communications to promote the banana peel-
based sunscreen as an eco-friendly option, thus, adopting a wise pricing strategy could
significantly increase market penetration and, by extension, the profitability of the firm.

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Projected Cost

In this section, the researchers meticulously analyze the projected costs


associated with their proposed project. This scrutiny is vital, as understanding the
financial implications is crucial for assessing the viability and sustainability of any
academic endeavor. The proponents shall break down each cost component, from initial
setup expenses to ongoing operational costs, providing a comprehensive overview,
aiming to present a transparent and detailed financial forecast, enabling readers and
stakeholders to gain insights into the economic considerations underlying their project.

Table 4

Projected Cost

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Sales Forecast

Figure 4.1 Sales Forecast

The figure presented delineates the trajectory of revenue augmentation for a


corporate entity over a triennial span commencing in 2025 and culminating in 2027, with
a projected annual increase of 2%. Initially, there is a discernible escalation in
the financial earnings of the company, with revenues ascending from ₱18,720,000.00 to
₱19,094,400.00 between the years 2025 and 2026. This escalation signifies a favorable
trend in the fiscal performance of the entity during the aforementioned interval.
Progressing into the year 2027, the curve of revenue, reflecting a consistent 2% annual
increase, continues its ascent, ultimately reaching a figure of ₱19,858,176.00. The
indicated consistent upward movement in revenue streams not only corroborates
the sustained growth of the company but also underscores its continued efficacy in
income generation over the delineated triennial framework.

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V. COMPARATIVE ADVANTAGE OF THE PRODUCT

Company Profile of the Competitors

Belo
Belo, a technology company founded in 1990, is revolutionizing customer
relationship management in the Philippines. Founded by Dr. Vicki Belo, a renowned
dermatologist and beauty ambassador, Belo Essentials aims to make the country the
most beautiful. The company offers innovative solutions to streamline customer
engagement and enhance operational efficiency. Belo's focus on user-friendly design and
advanced analytics allows companies to make informed decisions and deliver
personalized experiences. The company empowers businesses to build meaningful
connections and drive sustainable growth, helping them succeed in today's competitive
marketplace. Its Top 2 Products are Belo SunExpert Face Cover SPF40 and Belo
SunExpert Transparent Mist SPF50.
Belo Sunscreen Top Products:

Figure 5.1 Belo Company’s Top Products


Fairy Skin
FairySkin Beauty Products Corporation is a skincare company that aims to provide
effective and safe skincare products for everyone. They use potent ingredients sourced
from both local and Korean suppliers to ensure gentleness and efficacy.
In 2017, the company improved its packaging and product formulations, developed
innovative skincare routines, and established global partnerships. FairySkin is committed
to delivering skincare products that are backed by scientific research and FDA
certification. The products of this manufacturing company can help you attain glowing
skin while also supporting its overall health and strength.

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Its Top 2 Products are FairySkin Premium Brightening Sunscreen and Premium
Tinted Sunscreen.
FairySkin Top Products:

Figure 5.2 FairySkin Top Products

Comparative Advantage

Peel Protect Sunscreen, Belo Sunscreen, and FairySkin Sunscreen are three
brands that offer a wide range of products, each with its own unique features and selling
points. Peel Protect focuses on eco-conscious practices and uses banana peel extract in
its products. Belo emphasizes water resistance and dermatologist-tested formulas, while
FairySkin provides broad-spectrum protection and uses eco-friendly packaging. These
brands launched various promotional activities to target a wide audience, including
collaborations, seasonal promos, and influencer partnerships. The aim is to increase the
visibility and boost sales in the fiercely competitive sunscreen market.

Product
Table 5.1
Product Line

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BELO Sunscreen distinguishes itself in the sunscreen market with its diverse
product line, including tinted and reef-friendly options. These offer high SPF protection
and environmentally sustainable choices, with prices ranging from ₱180.003 to ₱539.11.
Fairy Skin targets consumers seeking sun protection and skin brightening benefits, with
its product range priced between ₱190.00 and ₱250.00. Peel Smooth Sunscreen, offering
essential sun protection at a more accessible price point from ₱75.00 to ₱375.00, caters
to those in need of cost-effective solutions for daily use.

Product Features

Table 5.2
Product Features

There are a wide range of sun protection products available to meet the diverse
needs of different skin types, providing a multitude of advantages. Belo Sunscreen is
recognized for its oil control, water resistance, dermatologist-tested formula, non-greasy
texture, quick absorption, absence of fragrance, and portability, making it a great fit for
any skin type. FairySkin Sunscreen, similarly, provides broad-spectrum protection, a non-
greasy formula, water resistance, eco-friendly packaging, and is dermatologist-tested. It's
suitable for all skin types and doubles as an excellent makeup base. Peel Protect
Sunscreen, on the other hand, sets itself apart as not only non-sticky and lightweight but
also environmentally sustainable. It offers multifaceted benefits, effective immediately,
including broad-spectrum UV protection. It is fragrance-free, travel-friendly, and good for
all skin types, positioning it as the top choice for those looking for effective sun protection
that also supports eco-friendly practices. This highlights the need to consider sunscreens
not just for their protective benefits but for their environmental impact and sustainability,
with Peel Protect Sunscreen demonstrating the pinnacle of skincare innovation that
respects ecological concerns.

21
Unique Selling Proposition

Table 5.3
Unique Selling Proposition

Belo Sunscreen, Fairy Skin Sunscreen, and Peel Protect Sunscreen each offer
unique benefits catering to diverse consumer needs. Belo Sunscreen is noted for its
water-resistant properties and incorporation of anti-aging elements, as well as its broad
compatibility with different skin types, featuring dermatologist-tested products that absorb
quickly. Fairy Skin Sunscreen sets itself apart by serving dual functions as a sunscreen
and makeup primer, providing broad-spectrum protection with a formula that includes
both mineral and chemical sunscreens, enriched with antioxidants and skin-nourishing
components for a comprehensive skincare approach. On the other hand, Peel Protect
Sunscreen introduces a novel eco-friendly option by utilizing banana peel extract,
focusing on sustainability and natural ingredients for long-lasting protection, catering to
environmentally conscious consumers. These brands collectively demonstrate a wide
range of advancements in sun care, including improved longevity and support for skin
health, as well as environmentally friendly formulations and versatile uses.

22
Placement

Table 5.4
Product Placement

The table above indicates the product placement of each leading sun protection
brand wherein BELO Sunscreen can be found nationwide, reaching both rural and urban
areas, and is sold in various outlets such as supermarkets, department stores,
pharmacies, health and beauty stores, e-commerce platforms, and grocery stores,
ensuring an extensive distribution. On the other hand, FAIRY Skin Sunscreen is also
available nationwide but has a more limited presence in selected areas, focusing on e-
commerce and cosmetic and beauty stores, resulting in a less extensive distribution
network. Meanwhile, Peel Protect Sunscreen is widely available across both rural and
urban settings nationwide, strategically positioned in major retail chains, beauty and
health stores, retailers of organic and natural products, specialty skincare establishments,
and e-commerce platforms. Its wide-ranging distribution, combined with its unique
positioning in specialty markets, gives it a distinct competitive advantage, appealing to a
broad yet discerning customer base seeking organic, natural, and specialized skincare
solutions.

23
Pricing

Table 5.5
Pricing

In the competitive sunscreen market, BELO Sunscreen stands out with its range
of products, including tinted and reef-friendly options, offering high SPF protection and
environmentally sustainable choices with prices from ₱180.003 to ₱539.11. Fairy Skin
caters to those seeking sun protection with skin brightening benefits, with products priced
from ₱190.00 to ₱250.00. On the other hand, Peel Smooth Sunscreen appeals to
consumers looking for essential sun protection at a more accessible price point, ranging
from ₱75.00 to ₱375.00, making it an ideal choice for daily use with its cost-effective
solutions.

Pricing Analysis

Figure 4.2 Pricing Analysis for 50mL

24
Figure 4.3 Pricing Analysis for 20 mL

Figure 4.4 Pricing Analysis for 10 mL

Starting with the given values of an overall total daily cost of Php91,756.48 and an
overall quantity demand of 272 pieces, the cost per piece can be determined. Initially, by
dividing the total daily cost by the quantity demand, it will then result in approximately
Php337.34 per piece. Then an 11% markup is added to this cost to cover additional
expenses and profit margin. The markup will be calculated as Php337.34 multiplied by
0.11, equal to approximately Php37.07. Adding this markup to the cost per piece gives
the final price, accounting for both the production cost and the desired profit margin which
results in an estimated cost of approximately Php375.

Moreover, the total daily cost will then be divided based on the size and quantity
of sunscreen units to establish the price per unit. Starting with 50mL sunscreen, which
has a total cost of Php33,374, will be divided among 100 pieces then resulting in a total
price per piece of Php375. This price encompasses both the production cost and an 11%
markup which ensures the coverage of production expenses and achieving the targeted
profit margin. Similarly, for the 20mL sunscreen, with a total cost of Php11,604.84 and a
distribution among 86 pieces, the total price per piece is Php150. Again, this price reflects
the cost of production and the added markup for profitability. Lastly, the 10mL sunscreen,
with a total cost of Php5,802.25 divided among 86 pieces, results in a total price per piece
of Php75, accounting for production costs and the necessary profit margin.

25
Promotion

Table 5.6
Promotion Strategies

As plotted above, Belo Sunscreen harnesses the power of celebrity endorsements


and enticing offers like buy one, get one free, alongside a 10% bulk purchase discount.
This strategy, complemented by seasonal promotions and brand collaborations, aims to
create a buzz and attract customers seeking value and star power. FairySkin Sunscreen,
in contrast, banks on the influential reach of social media platforms and influencers to
connect with its audience. It enhances its appeal through flash sales and seasonal
promotions, tapping into the digital-first consumer base. Peel Smooth Sunscreen adopts
a more community-focused approach, developing a comprehensive social media
presence and engaging in public relations events to foster a strong community
connection. This strategy is strengthened by limited-time flash sales, package deals, and
traditional advertising efforts like posters and banners, aiming to build a loyal customer
base by emphasizing engagement and accessibility. Each brand, through its unique
promotional strategies, seeks to establish its dominance in the highly competitive
sunscreen market by appealing to different segments of consumers.

26
APPENDICES

APPENDIX 1
Capital Expenditures

APPENDIX 2
Raw Materials

APPENDIX 3
Packaging Supplies

27
APPENDIX 4
Sales Forecast

APPENDIX 5
Direct Materials

APPENDIX 6
Direct Labor

APPENDIX 7
Salaries Expense

APPENDIX 8
Benefits Expense

28
APPENDIX 9
13th Month Pay

APPENDIX 10
Direct Overhead

APPENDIX 11
Utilities

APPENDIX 12
General and Administrative Expenses

APPENDIX 13
Advertising Expenses

29
APPENDIX 14
Permits and Licenses

APPENDIX 15
Rent Expense

APPENDIX 16
Supplies Expense

APPENDIX 17
Miscellaneous Expense

APPENDIX 18
Machineries and Equipment

30
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