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FEASIBILITY STUDY

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by

Mariz Angeles

on 21 March 2013

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Transcript of FEASIBILITY STUDY

..can you afford to be sick? VERA hand sanitizer The A&B Corporation is a manufacturing company which creates a hygienic product - sanitizer. It intends to be on top among the diverse competitors and to be positioned in the consumers’ minds as against the bewildering array of hygienic products from which to choose. It aims to attend to the unmet needs of the consumers regarding sanitation whenever needed at any possible time. NAME OF THE FIRM The office will be located at Chino Roxas Ave. Makati City.
The site will be located at the 1st class municipality in the Province of Batangas along Diokno Highway, Brgy. Quisumbing, Calaca, Batangas near National Power plant. LOCATION The use of hand sanitizer has increased with time. Especially with more stress being paid on maintaining hygiene because of different viruses, there has been an increase in the awareness of the use of hand sanitizers.
The edge of our product alongside with other competing products, which have established notable names in the market and for which their products have long been used by the consumers, is that we will offer a price that will click to most of the households and other potential consumers of our product. BRIEF DESCRIPTION OF THE PROJECT The use of hand sanitizer has increased with time. Especially with more stress being paid on maintaining hygiene because of different viruses, there has been an increase in the awareness of the use of hand sanitizers.
The edge of our product alongside with other competing products, which have established notable names in the market and for which their products have long been used by the consumers, is that we will offer a price that will click to most of the households and other potential consumers of our product. BRIEF DESCRIPTION OF THE PROJECT Our company will ensure to deal with the easiest and the simplest way of prevention from the bacteria. We will produce a product that will come in handy to offer a hassle free germ protection. Bacteria, especially those microorganisms that easily make contact with our skin, may cause different illnesses especially on children. BACKGROUND OF THE STUDY Our main ingredients will be aloe Vera and tea tree oil.
Another germ-killing ingredient of our product is the tea tree oil.
Aloe vera extracts have antibacterial and antifungal activities, which possibly could help treat minor skin infections, such as boils and benign skin cysts and may inhibit growth of fungi.
The antiseptic properties can help in the fight against skin blemishes. It also has beneficial cosmetic properties. Recent studies support a role for the topical application of tea tree oil in skin care and for the treatment of various diseases and conditions. to provide a high-quality product that will stick in the market for years at a reasonably profitable rate. PRIMARY OBJECTIVE to establish long term customer relationships to ensure a continuous progress of our firm;
to make modifications to our manufactured goods to offer a new experience of using our product;
to establish more branches of our store nationwide is one of our objectives, and
to be the leading supplier of the highest quality hand sanitizer all over the Philippines. SECONDARY OBJECTIVES The study comprises of the marketing, technical, management, financial, and socio-economic aspect. The range of the study is engaging in manufacturing and distributing of hand sanitizers from aloe vera and tea tree oil. Luzon population is the target market of our product based on the demand of different households. This study aims to project the profitability of the operation starting from the first year up to the fifth year. It is expected to be completed on or before the end of the second semester of the school year 2012-2013, particularly on March 22, 2013. SCOPE AND LIMITATION
- To establish the newest product in the Sanitation Industry and improve product awareness.
- To come up with certain marketing strategies.
- To determine the market condition and nature of competition.
- To maximize market share.
- To maximize profit while defending market share.
- To evaluate different factors that would affect demand and supply for the product to be offered.
- To increase sales of A&B Corp. by at least 20% in the first quarter of launching year. Marketing objectives: Market Segments Metro Manila 51,545,648 Market Condition Market Condition Potential Market Grid Market Share Percentage Green Cross Hand Sanitizer Statistical Forecasting method of Trend Extrapolation Lost horse Method Well-Known Products Market Size Historical Demand Historical Supply Projected Supply - shows the organizational structure of the enterprise, the qualifications in hiring applicants, how to distribute salaries and benefits efficiently and the rules and policies that should be obtained inside the company. It explains the roles of the people behind the enterprise and how they will make it productive. Management Study The main objective is to secure maximum output with minimum efforts and resources
Proper utilization of the factors of production
The company will provide maximum benefits to the employees
The enterprise shall ensure that the working place will be free from any toxics and shall be fully sanitized to avoid any contamination to the product and to ensure its effectiveness.
Vera will ensure satisfaction to the consumers
Management ensures better standards of living for the society and provides justice through its uniform policies. Management Objectives The A & B corporation will be incorporated by five persons whom will also be members of the Board of Directors. The enterprise will have an initial capital investment of P9,500,000 It is measured to be an effective value to ensure the corporation’s needs for the production and establishment of the enterprise. Capitalization The A & B corporation will only hire persons who are qualified for the respective positions and will help meet the goals and objectives of the business. Selecting and hiring of applicants will depend on the hiring procedures of the company. Manpower Requirement Organizational Structure Health and life insurance
Disability insurance
Vacation pay
Unemployment insurance
Holiday pay
Bonuses
Severance pay
Retirement pay Compensation and Benefits The employees are required to come regularly from Monday to Saturday from 8:00 in the morning to 5:00 in the afternoon. There will be an hour break provided (lunch break) from 12:00 noon to 1:00 in the afternoon. In case of overtimes, the general manager shall make an approval on the written approvals of the employees. Tardiness or working under time shall be punished by a deduction to their salaries (P50.00 deduction/hour). Working Hours An employee shall come regularly from Monday to Saturday. Any employee being absent in a day of work shall have a valid reason such as an emergency or illness and shall give notice to the management of the said absence and reason. An absence exceeding a week shall apply for a leave of absence that will be approved by the management or department where the employee belongs. Absences due to the company’s business related reasons shall also have a notice to the management and be allowed. Attendance Drinking
Gambling
Private telephone calls
Meetings
Other employment
Gross misconduct Attendance
Absence and time off
Health and safety
Company business
Visitors
Smoking Rules, Regulations and Prohibitions The procedure/s for dealing with Level 1 behaviors is/are:
Counseling
Verbal warning
Formal written warning
Suspension or probation
Discharge DISCIPLINARY ACTIONS Level 3 behavior:

These are behaviors that are serious enough to justify either a suspension or, in extreme situations, termination of employment without following the preceding disciplinary steps. The procedure/s for dealing with Level 2 behaviors is/are:
Written warning
Suspension or probation
Termination Socio Economic Study A & B Corporation will increase economic revenue in the form of taxes which will be the income of government gained from taxation. The taxes will help to increase the government revenue that can be used in improving and repairing damaged pubic property. CONTRIBUTION TO THE PHILIPPINE ECONOMY The A & B Corporation will hire persons who are qualified for the respective positions and will help meet the goals and objectives of the business. The employees and workers will receive basic pay and benefits. EMPLOYMENT GENERATION As society understands of germs and how they are spread improves, the importance of using Vera Hand Sanitizer is clear. Vera hand sanitizers can be very effective at killing and reducing the spread of germs in public places and in the home. Smooth skin is one of the great benefits of Vera hand sanitizer. The isopropyl alcohol that is found in the Vera hand sanitizers is proven to be an excellent germ killer. They slow the growth of bacteria on the hand when used correctly. SOCIAL DESIRABILITY FINANCIAL STUDY This study projects how much start-up capital is needed, sources of capital, returns on investment, and other financial considerations. It looks at how much cash is needed, where it will come from, and how it will be spent. It is an assessment of the different financial aspects of our business undertaking – manufacture of hand sanitizer. FINANCIAL OBJECTIVES To compute return on investment;
To monitor cash flows, and
To monitor company’s stability.
TOTAL PROJECT COST Marketing Program SKIMMING
ADVANTAGES:
Return on set-up costs
Building High Quality image for the product
Maximize profit from each market segments Pricing Strategy The use of Slogan “ “.
The use of lab tests and visible models to show the benefits of the product.
At the maturity stage, the company would focus from factual information to statistical information. Product Strategy PLACEMENT Manufacturer Retailers Wholesaler Consumer Channels of Distribution There will be less Shipping costs.
Introduction of product to two well known wholesalers – SM Supermalls and Robinson’s Place.
The Benefit A&B Corp. and the wholesalers will gain upon the demand of consumers. Advantages: The use of direct mail or coupons. Launching of product.
The use of Push Strategy.
Advertisements such as:
Internet
Newspapers
Magazines Promotion Strategy Keeping your hand sanitized and moisturized PRODUCT POSITIONING 99.9% in killing germs VERA SANITIZER BRANDING SWOT ANALYSIS Antibacterial products are used in almost every office, school, home, and bathroom. It is a well-defined market that has easy to pin point target markets within it.
Our product is unlike any other out there. This will keep us from having to worry about competition for the specific design and feel of this product.
We, as a team have a vision, and execute that vision together. We are all determined and confident behind the success of the new Vera Sanitizers. STRENGTHS We are not the only producers of antibacterial products in the market. Customers may have favorability over another brand as opposed to ours. Therefore our product may not do as well as we hope.
There will always be a new strain of flu or sickness floating around. Each season, scientists try and come up with a vaccine to protect people from the getting the flu. This may deter some customers from being worried about getting sick, and therefore find our product simply unnecessary. THREATS No matter what time of year, no one wants to be sick. The need for a safe and effective antibacterial product, like Vera Sanitizer, will continue to grow.
The spread of diseases and flu is now beginning to scare more and more people, specifically school. As the scare of the sickness increases, the higher the demand will be for a safe and effective antibacterial product like Vera Sanitizers. OPPORTUNITIES Since the same variety of product had been introduced before with other companies, there is a tendency that consumers will mislead the nature of the product.
The creation of a new company division makes it difficult to have specific goals in mind as we perform day-to-day activities. Some activities are difficult to perform, when in other companies it is second nature because they have been doing it that way for years.
The cration of new business methods that have not been used before.
  WEAKNESSES
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