multivit 5 in 1 skin lightening soap business plan the 2017 nrco-isp business...
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Multivit 5 in 1 Skin Lightening Soap
Business Plan
Submitted to
THE 2017 NRCO-ISP BUSINESS PLAN COMPETITION
Prepared and Submitted by
Reynaldo T. Gonzalo Jr.
and
October 2017
Gladys C. Gonzalo
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TABLE OF CONTENTS
1.0 Executive Summary…………………………………….…………………………………….…………………………..4
1.1 The Product………………………………………….…………………………………….……………………………..….4
1.2 The Market..……………………………………….…………………………………….………………………..……..….4
1.3 Selling Proposition..……………………………………….…………………………………….……………..……..….4
1.4 Vision..………………….…………………………….…………………………………….………………………..……..….4
1.5 Mission..………………….…………………………….………………………………….………………………..……..….4
1.6 Sourcing..………………….………….……………….………………………………….………………………..……..….5
1.7 Financial Forecast..….…………………………….………………………………….………………………..……..….5
2.0 Company Summary..….…………………………….………………………………….…………………..……..……..5
2.1 Company Ownership………………………………………….…………………………………….…………………….5
2.2 Start-up Summary…..………………………………………….…………………………………….…………………6-9
2.3 Company Location & Facility…………..………………….…………………………………….…………………….9
3.0 Product..….…………………………….………………………………….…………………..……..………………………..9
3.1 Product Description………………………..………………….…………………………………….……………….9 -10
3.2 Suppliers……..….…………..…………………..…………………………………………….…………………….……….10
3.3 Technology……..….…………..…………………..…………………………………………….……….…………….…..10
3.4 Production Plan…….………………………..………………….…………………………………….……………………11
3.4.1 Production Policy….………………………..…………….…………………………………….……………………11
3.4.2 Soap Making Procedure….………….…..…………….…………………………………….………..…………11
3.4.3 Process Flow Chart……..….………….…..…………….…………………………………….…………..………12
3.5 Competitive Comparison….………………………..…………………………………………….………….……….13
3.6 Competitor Analysis……..….………………………..…………………………………………….………….……….13
3.7 Sales Literature……..….…………..…………………..…………………………………………….………….……….14
3.8 Future Products……..….…………..………………..…………………………………………….…..……………….14
4.0 Market Analysis Summary..….…………………………….…………..……………..……..………………………14
4.1 Market Segmentation……..….…………..…………………..…………………………………………….…..…….14
Demographic Segmentation……..….…………..…………………..……………….………………….…..…….14
Market Share …………………….……..….…………..…………………..……………….………………….…..…….14
Market Survey …………………………..….…………..…………………..……………….……………..….…..…….14
Market Share (Graph 1)……………………………………..….…………..……….………..………..….…..…….15
Market Survey (Graph 2)……………………………………..….…………..……….………..………..…….…….15
4.2 Marketing Strategy……..….…………..…………………..……………………………………………………..…….16
5.0 Strategy and Implementation Summary.…………….…………..……………..……..………………………16
5.1 Strategy Pyramid……..……..….…………..…………………..……………………………………….…..…….16-17
5.2 SWOT Analysis….……..……..….…………..…………………..…………………………………………….…..…….17
5.3 Potential Strategies for Growth.……..…………………..…………………………………………….…..…….17
5.4 Competitive Edge…………………….……..…………………..…………………………………………….…..…….17
5.5 Positioning Statement……………..……..…………………..…………………………………………….…..…….18
5.6 Pricing Strategy……………………….……..…………………..…………………………………………….…..…….18
5.7 Promotion Strategy………………...……..…………………..…………………………………………….…..…….18
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5.8 Distribution Strategy……………….……..…………………..…………………………………………….…..…….18
5.9 Marketing Programs……………….……..…………………..……………………….…………………….…..…….18
5.10 Sales Strategy………………………….……..…………………..………………………….………………….…...18-19
5.11 Sales Forecast………………………….……..…………………..…………………………………….…………….19-20
5.12 Partners……….………………………….……..…………………..…………………………………………….…..…….20
5.13 Milestones………………………….……..………………………………………………..……………….………….20-21
6.0 Management Summary.…………………………………….…………..……………..……..………………………21
6.1 Management Team……………………….……..…………………..……………………………………….…..…….21
6.2 Personnel Plan……………………….……..…………………..…………………………………..………….…..…….22
7.0 Waste Management Plan.…………………………………….…………..……………..………..…………………22
8.0 Socio-Economic Impact.…………………………………….…………..……………..………..………..………23-24
9.0 Financial Plan.…………………………………….…………..……………..……..…………………..…………………24
9.1 Important Assumptions……………………….……..…………………..……………………..………….…..…….24
9.2 Break-even Analysis…………………………….……..…………………..……………………..………….…..…….25
9.3 Projected Cash Flow…..……………………….……..…………………..……………………..…….………..….….26
9.4 Projected Income Statement……………….……..…………………..……………………..…….…..…….26-28
Cost of Goods Manufactured Statement…………..……………………………….…..………….…..…….28
9.5 Projected Balance Sheet…………………………….……..…………………..……………….…….…..…….29-30
9.6 Ratio Analysis…………………………….……..…………………..……………………..………….…..………………30
10.0 Exit Plan.……………………………….…………..……………..……..…………………..…………………………31
11.0 Appendices.……………………………….…………..……………..……..……………...…………………………32
11.1 Proposed Business Location……………….……..…………………..……………………..………….…..…….33
11.2 Emmanuel’s Goat Farm……………………….……..…………………..……………………..………….…..…….34
11.3 How This Filipino Farmer's Son Made it to Harvard………..………………..…….………..….….35-38
11.4 Cost of Goods Manufactured per Unit…………..………………..……………………..…….…..…….39-40
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1 EXECUTIVE SUMMARY 1.1 The Product
Our business proposal is to manufacture a multivitamin soap that contains 5 natural ingredients namely; Malunggay, Tomato, Goat’s Milk, Calamansi and Papaya, which are proven effective in whitening and smoothing the skin. Normally, a single customer purchases different varieties of specialty soaps like anti-acne, anti-wrinkle, rejuvenating, etc. So, we decided to offer a total packaged soap wherein the customers can find most of their needs in just one product.
Multivit 5 in 1 Skin Lightening Soap is like an all in one soap because it solves most of the skin
problems that people encounter like aging, acne, dark spots and blemishes. The product will be sold for approximately Php50.00 per 130g bar. 1.2 The Market
In recent years, Filipino men and women have become increasingly willing to spend on beauty soaps in order to look good. Our Asian culture and mass media greatly affect the demand for using skin-lightening products because they primarily set the standard that having white skin is associated with beauty, cleanliness and purity.
In the Philippines, whitening soaps are considered big business. The skin care industries’
revenue reached approximately US$915m in 2017. The market is expected to grow annually by 7.6% (CAGR 2017-2021). Source: https://www.statista.com/outlook/70000000/123/cosmetics-and-personal-care/philippines#market-revenue 1.3 Selling Proposition
We will offer our product to customers who cannot afford or doesn’t want to spend a lot
of money on expensive cosmetics, injectables and surgical operations just to get their desired
complexion.
We will strongly encourage stay at home parents whose husbands or wives are Seafarers,
OFWs or even Local workers to become our Retailers. We will train them how to sell our soap so
that they can earn money on their own. Through this, they could help their spouses in other
household expenses while taking care of their children at home.
1.4 Vision
Our vision is to be our country’s one of the most important brands in soap industry. We envisioned our company as a formulator of beauty soap that brings inspiration to everyone to look best for themselves.
1.5 Mission
Our mission is to make and develop the right product for our customers. We will also provide opportunities for Filipinos to earn additional income by being our Resellers or Suppliers.
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1.6 Sourcing
The raw materials needed for Multivit soap are easily sourced and multiple suppliers have
been identified. Initially, caustic soda flakes, essentials oil and colorants will be sourced from a
reputable chemical company in Quezon City. We will acquire various oils from an oil company in
Malabon. Malunggay powder will be obtained from a Malunggay plantation in San Miguel,
Bulacan. Goat’s milk will be supplied by a Goat farm in Marilao, Bulacan. We will purchase fresh
vegetables and fruits for our active ingredients in large markets nearby like Polo Market in
Valenzuela and Meycauayan Peoples’ Market.
The creation of Multivit soap will bring additional income to our rural and small-scale farmers
within our community and nearby provinces. Sourcing our agricultural raw materials can help
improve the peoples’ livelihood and our local economy as well.
1.7 Financial Forecast
Based on our financial forecasts, our company will need Php500,000.00 in start-up capital,
but will generate positive cash flow by the end of Year 1. By the end of Year 3, the company will
be generating Php467,906.25 in sales with considerable net profit.
2 COMPANY SUMMARY
Our company will be established primarily as a Sole Proprietorship. We will develop and
market soaps that are safe, made with natural ingredients that can make the skin whiter, smoother and more glowing without any harmful side effects. The company will initially rent a 15-square meter space in Dalandanan, Valenzuela.
2.1 Company Ownership
The owner will be the manager of the company. Eventually as the business continue to
grow, we will attract potential investors that will help in the financing and operating activities of
the business in order to serve more customers nationwide. Hence, the company will gradually be
transforming from Sole Proprietorship into Corporation in the future.
₱-
₱100,000.00
₱200,000.00
₱300,000.00
₱400,000.00
₱500,000.00
Year 1 Year 2 Year 3
Financial Projection
Sales Gross Margin Net Profit
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2.2 Start-up Summary
Total funding required to get the business started is estimated at Php500,000. The whole
amount will be invested by the owner.
The key elements in the start-up plan for the company are:
❖ Development of a working prototype.
❖ Funding of working capital requirements and promotional materials for the principal
operating activities of the company.
❖ Establish a strong brand image early to position ourselves in the market.
START UP REQUIREMENTS Sources of Capital
No. Particulars Amount
1 Owner's Investment 500,000.00
Total 500,000.00
Start-Up Expenses
Legal & Professional Services
No. Particulars Amount
1 Permits and Licenses 10,000.00
2 Legal and Accounting Fees 1,000.00
3 Consultancy Fees 5,000.00
4 Research and Development 5,000.00
5 Government Compliance & Testing Services 30,000.00
Total 51,000.00
Advertising & Promotion
No. Particulars Amount
1 Flyers 100.00
2 Signages & Tarpaulin 500.00
3 Giveaways 500.00
4 Prizes 300.00
5 Sponsorship & Events 1,000.00
Total 2,400.00
General and Administrative
No. Particulars Amount
1 Electricity 250.00
2 Water 100.00
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3 Internet 360.00
4 Telephone 300.00
6 Salaries 5,200.00
7 Insurance 250.00
8 Travel 400.00
9 Rent 1,000.00
Total 7,860.00
Manufacturing Tools
No. Particulars No. Required Price Amount
1 Hand Mixer Big 1 200.00 200.00
2 Mixing Pail 1 150.00 150.00
3 Pitcher 1 35.00 35.00
4 Sangkalan 1 35.00 35.00
5 Soap Cutter 1 3,500.00 3,500.00
6 Soap Mould 1 3,000.00 3,000.00
7 Spatula 1 50.00 50.00
8 PH Tester 1 700.00 700.00
9 Weighing Scale 1 600.00 600.00
Total 8,270.00
Supplies
No. Particulars No. Required Price Amount
1 Apron 1 50.00 50.00
2 Ballpen 1 8.00 8.00
3 Broom 1 50.00 50.00
4 Dishwashing Soap 1 45.00 45.00
5 Disposable Gloves 10 1.00 10.00
6 Dust Pan 1 35.00 35.00
7 Face Mask 10 1.00 10.00
8 Garbage Bag 10 2.00 20.00
9 Gloves 1 75.00 75.00
10 Hair Net 1 25.00 25.00
11 Katsa 3 5.00 15.00
12 Knife 1 50.00 50.00
13 Other Supplies 1 200.00 200.00
14 Rug (Rectangle) 1 35.00 35.00
15 Rug (Round) 5 1.50 7.50
16 Safety Goggles 1 75.00 75.00
17 Sponge 2 8.00 16.00
18 Trash Can 2 75.00 150.00
19 Vinegar 1 40.00 40.00
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Total 916.50
Soap Samples for Testing
No. Particulars No. Required Price Amount
1 Soap Samples for Testing 10 17.75 177.54
Furniture and Fixtures
No. Particulars No. Required Price Amount
1 Table 2 500.00 1,000.00
2 Chairs 1 250.00 250.00
3 Storage Rack 1 1,000.00 1,000.00
Total 2,250.00
Machinery and Equipment
No. Particulars No. Required Price Amount
1 Mixing Machine 1 6,000.00 6,000.00
2 Filling Machine 1 6,000.00 6,000.00
3 Electic Fan 1 1,000.00 1,000.00
4 Light Bulb 1 50.00 50.00
5 Exhaust Fan 1 600.00 600.00
6 Refrigerator 1 5,000.00 5,000.00
7 Radio 1 250.00 250.00
8 Juicer 1 2,000.00 2,000.00
Total 20,900.00
Renovation
No. Particulars Column1 Column2 Amount
1 Renovation 2,000.00
Start-Up Cost of Goods Manufactured
No. Particulars Starting
Inventory Cost per soap bar Amount
1 Direct Materials Used 1,000 12.21 12,207.66
2 Direct Labor 1,000 2.31 2,312.50
3 Factory Overhead 1,000 3.23 3,233.65
Total 17.75 17,753.81
Working Capital
No. Particulars Period
(months) Amount
1 Cash 12 60,000.00
2 Ads & Promo 12 28,800.00
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3 Utilities 12 12,120.00
4 Salaries 12 62,400.00
5 Insurance 12 3,000.00
6 Travel 12 4,800.00
7 Rent 12 12,000.00
8 Supplies 12 916.50
9 Cost of Goods Manufactured 12 213,045.77
Total PHP 397,082.27
TOTAL COST OF PROJECT
No. Particulars Amount
1 Legal & Professional Services 51,000.00
2 Soap Samples for Testing 177.54
3 Renovation 2,000.00
4 Manufacturing Tools 8,270.00
5 Furniture and Fixtures 2,250.00
6 Machinery and Equipment 20,900.00
7 Start-Up Cost of Goods Manufactured 17,753.81
8 Working Capital 397,082.27
Total 499,433.62
2.3 Company Location and Facility
The management team of will initially rent a 15 square-meter rental space in Dalandanan,
Valenzuela to run operations. When the need to produce more soaps arises, we will eventually
move to a larger facility.
3 PRODUCT
We will be providing a product that has 5 natural ingredients which are proven effective
in whitening and smoothing the skin. A customer usually buys different variety of specialty soaps
like anti-acne soap, anti-wrinkle soap, rejuvenating soap, skin lightening soap and many more.
So, we come up with the idea of making a total package soap wherein the customers can
find most of their needs in just one product.
3.1 Product Description
Multivit 5 in 1 Whitening Soap is like an all in one soap because it solves most of the skin
problems that people encounter like aging, acne, dark spots and blemishes.
The product will be initially sold for Php50.00 per 130g bar.
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Below are the ingredients to be used in manufacturing Multivit Soap.
INGREDIENTS PURPOSE
Sodium Hydroxide Essential Ingredient in Soap making process
Palm Oil Smoothens the skin
Canola Oil Moisturizes the skin
Coconut Oil Cleanses the skin
Lavender Essential Oil Refreshing smell / With calming effect
Distilled Water Dissolving oxidizers
Orange Colorant Coloring Agent
Red Colorant Coloring Agent
Green Colorant Coloring Agent
Yellow Colorant Coloring Agent
Titanium Dioxide Coloring Agent
Malunggay With Anti-ageing properties
Tomato Cures sunburns / Protects the skin from UV rays
Goat's Milk Natural cleanser / Rejuvenates skin cells
Calamansi Whitens the skin / Deodorizes the skin
Papaya Gently exfoliates the skin
Preservative Prevents growth of bacteria / Extends the lifespan of the soap
Healthy skin is the basis for handsomeness and beauty. While there may always be times
when your skin isn’t ideal, it’s significant to understand that using a soap with right nutrients will
continually improve your skin.
3.2 Suppliers
Our main suppliers are listed below.
Company Address Products
Emmanuel's Goat Farm Prenza 1 Marilao Bulacan Goat's Milk
GreenEarth Heritage Foundation Brgy Sibul, San Miguel Bulacan Malunggay Powder
Polo Public Market Polo, Valenzuela City Tomato, Papaya, Calamansi
Malabon Soap & Oil Industrial Co Luna II Street, Malabon City Palm, Canola, Coconut Oil
Alysons' Chemical Enterprises, Inc. Del Monte Avenue, Siena, QC Essential Oil, Colorant, Lye
Sogomi Corporation Diliman, Quezon City Preservative
3.3 Technology
The company will initially buy semi heavy-duty soap making equipment such as mixing
and filling machines that can produce as much as 8,000 pcs of Multivit soaps per month.
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3.4 Production Plan
3.4.1 Production Policy
❖ Quality checks are in place throughout the manufacturing process.
❖ At first, the manufacturing process will be supported by an excel program that will keep
track and monitor the inventories, invoicing and day to day operations.
3.4.2 MULTIVIT 5 IN 1 SOAP MAKING PROCEDURE
❖ 1st Mixture (Lye Solution)
1) Put lye into the water (Not the other way around).
2) Stir the mixture gently.
3) Put the lye solution in a plastic container and set it in safe place. Cover the container and let it cool down.
4) Once it cools down, split it equally into five containers.
❖ 2nd Mixture (Combining Oils)
1) Melt the solid oils on the stove over medium-low heat while stirring gently.
2) Remove the melted oils from the heat and let it cool down at room temperature.
3) Combine the liquid and melted oils.
4) Split the oils equally into five containers.
❖ Final Procedure
1) Slowly add the container 1 of 1st mixture to the container 1 of 2nd mixture.
2) Mix it to start the chemical reaction that turns the mixture into soap.
3) Once the combined mixture become like the texture of a condensed milk, put the desired colorant, active ingredient and essential oil.
4) When the ingredients in the 1st containers are mixed, start pouring the mixture into the soap mold.
5) Repeat the procedure for 2nd to 5th containers in the order of Red, Orange, Yellow, Green, and White.
6) Cover the mold and wait for 24 hours until it becomes hard.
7) Remove the hardened soap from the mold and cut the bars horizontally.
8) Place the soaps in a safe, dry place and allow it to cure for 3 weeks before packaging.
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3.4.3 PROCESS FLOW CHART OF MULTIVIT SOAP
PASS
Start
Raw Materials Selection
Juicing/Pureeing
Ingredients
Soap Making
Soap Packaging
Soap Curing
Soap Labeling
Delivery
End
Soap Rebatching FAIL
Quality Control
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3.5 Competitive Comparison The competition for skin lightening soap business is very strong. There are hundreds of
whitening soaps that are being sold in the market. Upon researching, its top competitors are
Dove and Silka. The comparison between Multivit and the two market leaders in different
perspectives are shown below.
3.6 Competitor Analysis
Title Multivit Dove Silka
Product Description
Multivit is a soap that gently whitens skin due to its five main ingredients; papaya, goat's milk, malunggay, calamansi and tomato
Dove is a beauty bar with 25% moisturizing lotion
Silka is a papaya bar soap enriched with papaya enzymes and vitamin E
Target Market
The target groups of Multivit are men and women age 15 & above
The target group of Dove is particularly women above 18 years
The target groups of Silka are men and women age 15 & above
Positioning Strategy
"Tiis sa hapdi? Tiis sa bulsa? Huwag mag-Tiis Ganda Mag-Multivit na"
*'Real beauty campaign' *To feel beautiful in their own skin
"A natural and effective way to cleanse and whiten your skin"
Product Benefits
It helps improve the condition of skin by making it lighter and smoother
It has both moisturizing and cleaning properties
It cleanses and nourishes skin by removing dead skin cells for a clearer complexion.
Distribution *To be distributed locally thru Resellers, Online Availability as well
Globally distributed, products are sold as brand to customers
Silka Papaya products can be bought in the Philippines thru Supermarkets
Pricing The 130g bar of Multivit will be priced around Php50.00
Pricing ranges from Php48.00 to Php125.00
Pricing ranges from Php20.00 to Php150.00
Promotion
* Social Media Ads *Bazaars / Print Ads *Giveaways and brochures
*Has highly informative website *Advertisements *CSR campaign"
*Has highly informative website *Advertisements *CSR campaign"
Competitive Classification
Challenger Leader Leader
Even though Dove and Silka are far and away the market leaders with an estimated
market share of 33%, Multivit is a much-improved product in this rapidly growing soap industry.
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3.7 Sales Literature
In the future, we will outsource independent graphic designers, website developers and
print ad companies who will develop the logo, business cards, brochures, website, and display
ads. All will contain branding information to sell our new product while creating familiarity and a
positive image in the market.
Flyers will be distributed in the adjacent neighborhood, on university campuses, at the
malls and in LRT stations during start-up period.
Posting ads in newspaper publications, electronic signages and billboards are also
included in future plans to increase brand awareness of our potential customers nationwide.
3.8 Future Products
In the coming months or years, we will diligently continue to improve and develop our
product by researching on other effective natural ingredients that we can add to the product for
the maximum benefit of our customers.
4 MARKET ANALYSIS SUMMARY
The skin lightening soap industry in the Philippines is strongly influenced by the
importance of personal appearance and cleanliness. Because of this rising demand, our company
is believes that our product has a big potential to penetrate in the market.
4.1 Market Segmentation
As a brand, Multivit 5 in 1 Skin Lightening Soap segments the market in the following ways:
1) Demographic Segmentation:
-Under this segmentation, Multivit focuses on all men and women above 15 years old.
-These include men and women who are conscious about skin care. These people want
to use quality products. They also have good purchasing power since our target
consumers are in the working class and students who can afford to buy quality soap at a
reasonable price.
2) Market Share: A survey was conducted by Multivit to find out the segment of people who
prefer to use skin lightening soaps in their daily use. Based on that survey, 51% of Filipinos
are currently using whitening soaps. We could say that half of the Filipinos are avid
customers of soaps that promise to make their skin fair and glowing. (See Graph 1)
3) Market Survey: The analysis will show the preference of people in terms of the kind of
soap they like to use. Cleansing – 29%; Conditioning – 21%; Fragrance – 24%; Whitening
– 16%; Bubbly – 9%; Creamy – 1% (See Graph 2)
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Graph 1
Graph 2
Bioderm2%
Jhonsons baby soap
2%
Jhonsons body wash
1%
Cetaphil1%
Tender Care1%
Dr. Wong3%
Hygienix3%
Safeguard36%
Olay1%
Likas Papaya1%
Flawlessly u4%
Kojic6%
Palmolive6%
Dove16%
Silka17%
MARKET SHARE
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4.2 Marketing Strategy
We will start by having regular marketing campaigns. Some of our campaigns are as follows:
- "Oplan Pagandahin si Nanay” Campaign
- Livelihood Programs to Different Baranggays
- Social Media Ads
- Giving flyers with attached sample soap
- Running a contest
- Attending Bazaars and Social Gatherings
- Sponsoring Beauty Contest and Other Events
- Tarpaulins and Print Ads to be given to resellers nationwide
- Giving samples and promos during holidays and anniversaries.
We will conduct aggressive advertising and heavy promotional strategies for us to be known
in the market. Our main marketing plan is the Multivit itself wherein if anyone who tried using
this soap, that person will be highly satisfied by its result. Therefore, they will serve as walking
advertisements that will tell everyone about their skin’s amazing transformation.
5 STRATEGY AND IMPLEMENTATION SUMMARY
Multivit plans to market itself through variety of methods to progressively gain market
share in the soap industry. Our company will build brand loyalty and create awareness of the
benefits of Multivit in our skin.
5.1 Strategy Pyramid
Our strategy is to develop Multivit as a brand that represents quality and value. The tactics
underneath this strategy and the programs we will put in place cover a broad range of disciplines.
They are presented here in the order of importance.
1. Product:
❖ Continually develop and bring Multivit to the market that represents a quality
product at a reasonable price.
❖ Innovate by formulating different variation, sizes, packaging and ingredients of
Multivit soap.
2. People:
❖ Search, boost and develop employees that are talented, passionate and
understand the concept of brand.
❖ Training, commissions and incentive programs will assist in inspiring our resellers
and sales agents to "walk the walk", and reward performance.
3. Targeted marketing programs
❖ Focus on PR campaigns and affiliations with different organizations that will
reinforce our brand image.
❖ Advertisements will be focused on the benefits of our product, both physical and
emotional. They will speak to the lifestyle our target customers desire to have.
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4. Controlled distribution at wholesale:
❖ Finding resellers who have customer image and strong belief in our product will
strengthen our brand image.
5. Implementation of Multivit website:
❖ Provide customers with knowledge for treating the skin.
5.2 SWOT Analysis
Strengths Weaknesses Opportunities Threats
Quality: We produce high-quality and freshly made soap with five natural ingredients that are proven effective in skin lightening.
High startup costs: the very high cost of opening a soap making factory will require investment and loans.
Growing market: The market for whitening soaps is huge and growing.
Competition: Dove and Silka and other inexpensive soaps are strong competitors in the market.
Sales expertise: Our founder has lifetime experience selling everything (moral and legal) including soaps and other skin care products since childhood and teenage years.
Time: Right now, it’s just the founder doing everything.
Research & Development: Possible variations of Multivit soap in the future.
Government compliance: We need to follow the standards of strict FDA and other government rules and regulations.
5.3 Potential Strategies for Growth
Multivit needs to investigate its options for obtaining capital. Funding a new business will
take time, and because it’s the step one of the long journey to profit, we must secure funding
before we begin production.
Multivit may want to consider adding a Research & Development team, to formulate new
products and keep the company’s operations well prepared for any changes in government rules
and regulations.
The company needs to find its niche in the market, and one effective way is to focus on
the company’s marketing and selling strategies.
5.4 Competitive Edge
Our company’s main competitive advantages will be:
❖ Quality ingredients and great soap formula.
❖ Strong salesmanship and superior customer service.
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5.5 Positioning Statement
"Tiis sa hapdi sa gamit mong sabon?
Tiis sa bulsa sa pinaturok mong injection?
Huwag nang mag Tiis Ganda,
Mag Multivit 5 in 1 Skin Lightening Soap ka na..
Affordable na, Safe pa."
5.6 Pricing Strategy
Pricing for the Multivit soap is Php50.00 per 130g bar for End users and Php35.00 for
Resellers. These are suggested retail and wholesale prices. They represent two times and three
times our estimated cost to manufacture, respectively.
Quantity discounts are not included but remain possible in negotiations with major buying
groups. Price may be changed in the future based on different factors such as increase in prices
of raw materials, upgrading of technology and equipment and other matters. However, the price
of Multivit is not expected to experience significant change over the next three years.
5.7 Promotion Strategy
Personal selling will be our most important means of promotion. We will lead this effort,
with our skill and experience in sales and customer service.
In addition to personal selling, the company will be involving in an aggressive marketing
program that will contain social media ads, event sponsorships, bazaars, print ads, and other
platforms to generate product awareness and value proposition. However, the company’s
immediate goal will be to generate profit to pay for such expenses. Our major marketing plans
will go into effect starting in year three. Prior to this, the company will use more modest
marketing tools such as social media advertisements, word-of-mouth marketing, and bazaar
participations.
5.8 Distribution Strategy
Initially, deliveries will be made thru the local and nationwide couriers like Xend, LBC,
Grab express, Grab motor rider, Cargo forwarder or Rent a truck for bulk orders. As the number
of orders increase, the need for a company owned delivery vehicle will continue to be evaluated.
5.9 Marketing Programs
Our best marketing program is to ensure that the customers’ expectations about our soap
will be exceeded. The customers who are happy about the soap they are using will eventually tell
friends about their positive experiences. A referral from a personal friend based on experience
are often the strongest recommendations that can be offered.
5.10 Sales Strategy
The sales strategy will be based on generating long-term relationships with customers. To
facilitate that, we will offer Multivit soap at the very reasonable price, have soaps in stock for
both quick shipment and store front pick up, and provide superior customer service.
Page 19 of 41
All sales agents and resellers will be trained to provide friendly & knowledgeable
customer service. For some, having a smooth and beautiful skin is an integral part of their lives,
so establishing long-term relationships will ensure a large, loyal customer base.
5.11 Sales Forecast
The following table and chart presents specific forecasts by month, over the first year of
the business. As indicted in the table, our sales are forecasted to increase gradually, with an
annual growth rate of approximately 5%. Soaps are assumed to be sold after 3 months.
Month1
Month2
Month3
Month4
Month5
Month6
Month7
Month8
Month9
Month10
Month11
Month12
sales in peso - - - 38,750 38,750 38,750 38,750 38,750 38,750 38,750 38,750 38,750
sales in units 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
0
200
400
600
800
1000
1200
-
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
30,000.00
35,000.00
40,000.00
45,000.00
un
its
pes
o
Sales Monthly
sales in peso sales in units
year 1 year 2 year 3
sales in peso 348,750.00 445,625.00 467,906.25
sales in units 9,000 11,500 12,075
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
-
50,000.00
100,000.00
150,000.00
200,000.00
250,000.00
300,000.00
350,000.00
400,000.00
450,000.00
500,000.00
un
its
pe
so
Sales by Year
sales in peso sales in units
Page 20 of 41
Sales Forecast
Sales YEAR 1 YEAR 2 YEAR 3
Multivit Soap ₱ 348,750.00 ₱ 445,625.00 ₱ 467,906.25
Other ₱ - ₱ - ₱ -
TOTAL SALES ₱ 348,750.00 ₱ 445,625.00 ₱ 467,906.25
Cost of Sales Year 1 Year 2 Year 3
Multivit Soap ₱ 159,784.33 ₱ 204,168.86 ₱ 214,377.30
Other ₱ - ₱ - ₱ -
Cost of Sales ₱ 159,784.33 ₱ 204,168.86 ₱ 214,377.30
5.12 Partners
We will have three categories of Partners – our SUPPLIERS, our RESELLERS, and our
EMPLOYEES.
We will encourage competitive bidding among Suppliers, and prefer the ones offering
best prices and terms.
The Resellers will be our sales partners by promoting and selling our product to end users.
In return, they will earn profit for every soap that they are going to sell.
We will have a Performance Management System for the Employees and they will be
rewarded with annual bonuses based on performance.
5.13 Milestones
The accompanying table lists important milestones, with projected dates, management
and budget responsibility. The milestone schedule indicates our emphasis on planning for
implementation.
Milestone Start Date End Date Department
Business concept and planning 01-Jul-17 30-Nov-17 Executive
Secure funding for business operations 01-Nov-17 31-Mar-18 Executive
Consultation & formulation of prototype 01-Nov-17 31-Dec-17 R&D
Secure government permits 01-Jan-18 Executive
Purchase Raw Materials & Equipment 01-Jan-18 Purchasing
Factory Setup 01-Jan-18 15-Jan-18 Executive
Design flyers and ads 01-Feb-18 08-Feb-18 Marketing
Open social media accounts 01-Feb-18 08-Feb-18 Marketing
Manufacture the first 1,000 soaps 01-Feb-18 22-Feb-18 Production
Social media promotions 01-Feb-18 Marketing
Give away flyers and soap samples 01-Feb-18 Sales
Opening of the business 01-Feb-18 Executive
Marketing & Selling soaps 01-Feb-18 Mkgt / Sales
Training resellers 01-Feb-18 Sales
Page 21 of 41
Milestone jul nov dec jan feb mar apr
2017 2017 2017 2018 2018 2018 2018
Business concept and planning
Secure funding for business operations
Consultation & formulation of prototype
Secure government permits
Purchase raw materials & equipment
Factory setup
Design flyers and ads
Open social media accounts
Manufacture the first 1,000 soaps
Social media promotions
Give away flyers and soap samples
Opening of the business
Marketing & Selling soaps
Training resellers
6 MANAGEMENT SUMMARY The company’s management philosophy will be based on customer satisfaction, integrity
and accountability. We will encourage everyone in the company to be efficient, honest and
respectful at all times, most especially the sales persons and customer service representatives.
6.1 Management Team
These are the team members who will run the business and be in charged in the daily
productions and operations of the business.
Name Education / Knowledge of the product or service
Experience Skills Responsibility
Gladys C. Gonzalo
BS Accountancy / Soap formulator
Experienced in different areas within the company
Accounting, and Selling skills
Manages the overall operations of the business.
Reynaldo T. Gonzalo Jr.
BS Marine Transportation
Experienced in Logistics, Packaging and Quality Control
Keen on details, Good leadership skills
Manages the production and transportation of products to different areas.
Page 22 of 41
6.2 Personnel Plan
Initially, the owner will be in charged in the production of Multivit soap. As sales continue
to grow, the company will hire a production worker and he will be paid based on units produced
per month. The direct labor cost per bar of Multivit soap will be identified thru either by standard
production of equipment or thru time and motion study.
The production staff will need to possess the following knowledge and skills to be able to
perform effectively on the job.
Designation Educational Background
Experience Skills Responsibility
Production Staff 1 At least HS graduate
no experience required
Basic knowledge in Math
Prepares the ingredients, Makes the soaps, Cleans tools and Equipment
Production Staff 2 At least HS graduate
no experience required
Basic knowledge in Math
Packages the soaps, Labels the soaps, Arranges the soaps in the box for delivery
In order to secure enough capital for the business operations, the management team will
not yet receive more than the minimum wage salary until the product is totally introduced in the
market. We understand that the 1st three years of the business are full of start-up expenses like
consultancy fees, government compliances and other unforeseen expenditures.
7 WASTE MANAGEMENT PLAN
Our hometown, Valenzuela City is very diligent in the collection of solid wastes. The
biodegradable wastes are temporarily collected, hauled and dumped in Lingunan, Valenzuela
controlled dumpsite. Then it will be transferred to a sanitary landfill in Rodriguez, Rizal. Some
biodegradable wastes find their ways to composing centers to be processed as fertilizer. The non-
biodegradable wastes are being generated by factories and industries within the city as recyclable
raw materials in manufacturing their products.
We believe that urbanization can be done without compromising the protection of our
environment and natural resources. The company will make sure to be responsible enough in
following the policies and procedures of the Solid Waste Management Plan implemented by the
local government.
Page 23 of 41
8 SOCIO-ECONOMIC IMPACT
EMPLOYMENT. Our company will create jobs starting from two employees and will
increase as the business successfully grows in the future. Our employees will have sufficient
salaries to support their families.
ADDITIONAL INCOME FOR RESELLERS. We will also offer our product to stay at home
parents where partners are OFWs, Seafarers or Local workers who opted to become full time
mom or dad to take good care of their children. We will highly encourage and train them to earn
also on their own by becoming resellers. Through this, they will earn their own money so they
could help their better half in other expenses.
CORPORATE SOCIAL RESPONSIBILITY PROGRAMS. The company will conceptualize
social awareness campaigns, livelihood programs, and community development in order to
motivate and inspire our fellow citizens to become confidently beautiful with an empathetic
heart.
UPLIFTING LIVES OF OUR SUPPLIERS. Our company selects suppliers that can provide
quality raw materials for our product. The suppliers we choose are those that promote goodwill
for the betterment of our country. Some of them are as follows:
✓ Greenearth Heritage Foundation Inc – It is a foundation that sells Malunggay Powder
(an ingredient in Multivit Soap), a by-product of Malunggay from the 100 hectares
Malunggay Plantation located in Brgy. Sibul, San Miguel, Bulacan. Some of their
missions are: 1) FARM-TO-TABLE APPROACH, wherein they assist the farmers in
their agricultural needs, then they search for direct consumer markets;
2) SCHOLARSHIP FOR FARMERS’ CHILDREN, wherein they help the farmers’ sons
and daughters in their education thru different literacy programs within the
community, and finding sponsors to support the education of these children to a
higher level. In fact, one farmer’s son named Romnick L. Blanco receives full
scholarship to study at Harvard University, with the help of this foundation. (See
Appendix for his inspiring story).
✓ Emmanuel’s Goat Farm – Mr. Emmanuel Balidoy is a full-time teacher with a small-
scale Goat Farm in Marilao, Bulacan. His family, especially his father who is also a
farmer helps in the daily operations of the farm. They were very happy when we
proposed to them that the excess milk of their goats can be an ingredient in our
soap because selling goat’s milk will increase the income of their family and can
enlarge their goat farm business as the need arises.
Page 24 of 41
✓ Vendors and Suppliers of Tomato, Calamansi & Papaya – Being the ingredients in
Multivit Soap, these three products will generate more earnings to the
hardworking vendors in Polo, Valenzuela and Meycauayan Market. This will also
increase the source of income for farmers of these three ingredients.
✓ Logistics Companies and other Local Suppliers – the delivery of soaps all over the
country will help improve the business of logistics and transportation. It will also
add profit to chemical companies and soap making oil suppliers for other
ingredients.
IMPROVING THE STATUS OF OUR FAMILY – this is the most promising part in having a
business. Business fights poverty. When the right time comes, my husband will no longer need
to go abroad to work as a seafarer. He will be able to provide for our needs by managing our
business and at the same time being able to guide and take care of our children. We will also be
able to help our families and relatives. And lastly, this business will motivate us in extending help
to the needy and bringing inspiration to everyone that dreams can turn into reality.
9 FINANCIAL PLAN
We assume the business to begin growing at a minimum annual rate of 5% for the next
three years. We will also have a positive cash flow, allowing us the flexibility to cover any
unforeseen expenses.
9.1 Important Assumptions
❖ Initially, 100% of sales will be made on cash.
❖ Customers will pay for all relevant shipping charges.
❖ Projections related to customer acceptance were estimated using market surveys.
❖ The markup will be based on 100% of the total cost.
❖ Sales Quota will be approximately 40 soaps per day.
❖ Sales are assumed begin at the 4th month since the 3 months start up period is a series of
brand awareness and marketing programs.
❖ 92% of the finished goods will be sold out, of which 75% will come from Wholesalers and 25%
from End Users.
❖ Other assets and recurring expenses will not have significant change for the next three years.
❖ There will be no income tax rate for the next three years in accordance with Republic Act 9178, otherwise known as the “Barangay Micro Business Enterprises Act of 2002”.
Page 25 of 41
9.2 Break-even Analysis Our Break-even Analysis is shown in the following table and chart.
Description Data
Monthly Units Break-even 719
Monthly Revenue Break-even 27,851.56
Assumptions:
Unit Selling Price (Wholesale) ₱ 35.00
Unit Selling Price (Retail) ₱ 50.00
Sales Ratio of Wholesale to Retail 3:1
Variable Cost per Unit ₱ 17.75
Estimated Monthly Fixed Cost ₱ 15,090.95
Page 26 of 41
9.3 Projected Cash Flow
Our business is optimistic to have sufficient cashflows over the next three years. When
the actual cash flow becomes favorable, we will study whether to invest in equipment,
employees’ benefits or any programs that will increase the efficiency and productivity of our
company.
PROJECTED STATEMENT OF CASH FLOWS
No. Particulars Amount Column1 Column2
Year 1 Year 2 Year 3
CASH FLOW FROM OPERATING ACTIVITIES
i Net income before interest and tax
7,874.29
100,364.75
112,437.56
ii Depreciation
3,969.00
3,969.00
3,969.00
iii (Increase) Decr. in Working Capital
(107,512.99)
(20,811.00)
(21,851.55)
Net cash flow from operating activities
(95,669.71)
83,522.75
94,555.01
CASH FLOW FROM INVESTING ACTIVITIES
i Increase in Machinery & Equipment
(20,900.00)
-
-
Net cash flow from investing activities
(20,900.00)
-
-
CASH FLOW FROM FINANCING ACTIVITIES
i Increase (Decrease) in Investment
500,000.00
-
-
Net cash flow from financing activities
500,000.00
-
-
NET INCREASE (DECREASE) IN CASH
383,430.29
83,522.75
94,555.01
Cash Balance, beg
-
383,430.29
466,953.05
Cash Balance, end
383,430.29
466,953.05
561,508.06
9.4 Projected Income Statement
Our income statement projections indicate that there will be Net Income within our
three-year operations. We assume that fixed operating expenses will remain constant from
year 1 to year 3.
Page 27 of 41
PROJECTED INCOME STATEMENT
No. Particulars Year 1 Year 2 Year 3
Income from Sales
348,750.00
445,625.00
467,906.25
Less: Cost of Goods Sold
i Finished Goods Inventory, Beg
- 53,261.44
71,902.95
ii Cost of Goods Manufactured
213,045.77
222,810.36
233,950.88
Total Goods Available for Sale
213,045.77
276,071.81
305,853.83
iii Finished Goods Inventory, End
(53,261.44)
(71,902.95)
(91,476.53)
Cost of Goods Sold
159,784.33
204,168.86
214,377.30
Gross Margin
188,965.67
241,456.14
253,528.95
Less: Operating Expenses
i Legal & Professional Services
51,000.00
11,000.00
11,000.00
ii Advertising & Promotion
28,800.00
28,800.00
28,800.00
iii Electricity
3,000.00
3,000.00
3,000.00
iv Water
1,200.00
1,200.00
1,200.00
v Internet
4,320.00
4,320.00
4,320.00
vi Telephone
3,600.00
3,600.00
3,600.00
vii Salaries
62,400.00
62,400.00
62,400.00
viii Insurance
3,000.00
3,000.00
3,000.00
ix Travel
4,800.00
4,800.00
4,800.00
x Rent
12,000.00
12,000.00
12,000.00
xi Supplies
824.85
824.85
824.85
xii Soap Samples for Testing
177.54
177.54
177.54
xiii Renovation
2,000.00
2,000.00
2,000.00
Page 28 of 41
COST OF GOODS MANUFACTURED STATEMENT
No. Particulars Year 1 Year 2 Year 3
Direct Materials Used
i Direct Materials, Beg
- 25,636.09 26,917.89
ii Direct Materials Purchased 184,335.67 155,098.32 162,853.24
Direct Materials Available for Use 184,335.67 180,734.41 189,771.13
iii Direct Materials, End (25,636.09) (26,917.89) (28,263.78)
A Direct Materials Used 158,699.58 153,816.52 161,507.34
B Direct Labor 30,062.50 29,137.50 30,594.38
C Factory Overhead 42,037.50 40,744.04 42,781.24
Total Manufacturing Costs 230,799.58 223,698.06 234,882.96
D Work in Process Invty, Beg -
17,753.81 18,641.50
Total Mfg Costs to be acct. for 230,799.58 241,451.87 253,524.46
E Work in Process Invty, End (17,753.81) (18,641.50) (19,573.58)
Cost of Goods Manufactured 213,045.77 222,810.36 233,950.88
xiv Depreciation - Furniture & Fixtures
225.00
225.00
225.00
xv Depreciation - Tools
1,654.00
1,654.00
1,654.00
xvi Depreciation - Equipment
2,090.00
2,090.00
2,090.00
Total Operating Expenses
181,091.39
141,091.39
141,091.39
Net Income B4 Interest & Taxes 7,874.29
100,364.75
112,437.56
Tax - - -
Net Income (Loss)
7,874.29
100,364.75
112,437.56
Units Manufactured 12,000 12,550 13,178
Cost per unit
₱ 17.75
₱ 17.75
₱ 17.75
Page 29 of 41
9.5 Projected Balance Sheet
Our balance sheet projections indicate that there will be Net Income within our three-
year operations. We assume that fixed operating expenses will remain constant from year 1 to
year 3.
No Particulars Year 1 Year 2 Year 3
ASSETS
Current Assets
i Cash
383,430.29 466,953.05 561,508.06
ii Prepaid Insurance
250.00 250.00 250.00
iii Supplies
91.65 91.65 91.65
iv Tools
8,270.00 8,270.00 8,270.00
Accum. Depr - Tools
(1,654.00) (3,308.00) (4,962.00)
v Furniture & Fixtures
2,250.00 2,250.00 2,250.00
Accum. Depr - Furniture & Fixtures
(225.00) (450.00) (675.00)
vi Inventory
96,651.34 117,462.34 139,313.89
Total Current Assets
489,064.29 591,519.04 706,046.60
Non-Current Assets
iii Machinery & Equipment
20,900.00 20,900.00 20,900.00
iv Accum. Depr - Mach & Eqpt
(2,090.00) (4,180.00) (6,270.00)
Total Non-Current Assets
18,810.00 16,720.00 14,630.00
TOTAL ASSETS
507,874.29 608,239.04 720,676.60
LIABILITIES & OWNER'S EQUITY
Owner's Equity
i Capital, beg
- 507,874.29 608,239.04
Page 30 of 41
ii Add: Investment
500,000.00
iii Net Income
7,874.29 100,364.75 112,437.56
Capital, End
507,874.29 608,239.04 720,676.60
TOTAL LIABILITIES & OWNER'S EQUITY
507,874.29 608,239.04 720,676.60
9.6 RATIO ANALYSIS
The table below consists of projected ratios calculated over the next three years.
Payback Period Year 1 Year 2 Year 3
Initial Investment =
500,000.00 500,000.00 500,000.00
Net Income after tax 7,874.29 100,364.75 112,437.56
= 63.50 4.98 4.45
Return on Investment:
Net Income after tax = 7,874.29 100,364.75 112,437.56
Initial Investment
500,000.00 500,000.00 500,000.00
= 0.02 0.20 0.22
Net Profit Margin:
Net Income After Tax = 7,874.29 100,364.75 112,437.56
Sales
348,750.00 445,625.00 467,906.25
= 0.02 0.23 0.24
The Payback Period shows that net income starting year 2 will bring back the initial
investment within 4 – 5 years. It is supported by the Return on Investment of 20%. The ratio of
Net Profit to Sales is 23%.
Page 31 of 41
10 EXIT PLAN
The owner believes in Going Concern Principle that the company will remain in business
for the foreseeable future.
Hence, we are planning to continue our legacy of providing skin lightening soaps and
other beauty products that are safe and affordable and at the same time helping our motherland
by providing jobs and assistance to our fellowmen by passing the company to our children after
our retirement. While they are still young, we will little by little train them how to run the
business, how to treat our employees well, and how to promote our advocacies and other
corporate social responsibilities.
We are very much hopeful that this business will succeed progressively through the years
because of the cautious business planning, continuous effort and undying perseverance of the
management and employees, support from the government and other entities, and most of all
through the guidance of our Lord.
Page 32 of 41
11 APPENDICES
Page 33 of 41
11.1 PROPOSED BUSINESS LOCATION
Page 34 of 41
11.2 EMMANUEL’S GOAT FARM
Page 35 of 41
11.3 How This Filipino Farmer's Son Made it to Harvard
Before heading to college, Romnick Blanco is dedicating a year to inspire other farmers'
children.
By Alicia Colby Sy | AUG 7, 2017
“If they write about me, people will be happy to read my story for two minutes, feel
good, be inspired, and then they will quickly forget. But if they talk about the kind of community
I come from, full of hopelessness, poverty, and despair, and talk about how GreenEarth Heritage
Foundation is addressing the problems, that will serve a bigger group of people beyond myself, I
think that has more impact.
– Romnick L. Blanco, Green Earth Heritage Foundation scholar, International School Manila
scholar Class of 2017, Harvard University Class of 2022
Page 36 of 41
This is a story of hope. And, as with most remarkable stories, it started with a dream and
many prayers—followed by hard work, patience, perseverance, and love. This is the story of
Romnick Blanco, the seventh of nine sons of a farmer who grew up in a small municipality in the
northern foothills of the Sierra Madre; a young boy who endured a long walk each day on
unpaved roads just to get to school. Romnick crossed a bridgeless river, under the scorching
heat almost every day, including Saturdays, in an effort to better himself and with the hope that
through education, he and his family and their community could have a better life.
This is also the story of GreenEarth Heritage Foundation, an organization that believes
in Romnick and has poured its resources in nurturing his talent with passion and prayer. It is a
foundation that is dedicated to transforming lives through organic agriculture, in an area where
the lack of farm-to-market infrastructure and sustainable countryside opportunities has
perpetuated deforestation, illiteracy, and grinding poverty. GreenEarth Heritage Foundation’s
holistic mission is “to preserve the environment, adhere to sound and sustainable agricultural
practices and help in the alleviation of poverty through livelihood, education and community
development.”
This is Romnick’s very own David and Goliath tale to tell: A poor boy who comes from a
small, rural town. He describes his impoverished community as a place “where people are
living in hopelessness and despair. They believe that no matter what takes place, they will be
poor forever. They see no light at the end of the tunnel.” But Romnick now knows that hope
exists and a better life for all of them is possible. He is dedicated to sharing his blessings so that
others may experience the hope, too. “This amazing blessing that I have received will be looked
upon by many as an achievement, but if I were to be very honest, I truthfully believe that what
happened to me was nothing short of a miracle,” he says.
Established in 2009, after receiving a land grant of over 100 hectares, GreenEarth
Heritage Foundation quickly established programs in order to urgently address environmental
destruction, lack of sustainable agricultural livelihood opportunities and poor quality
education, in order to help farmers and their children in Romnick’s community.
2011, Romnick became a sponsored child of the foundation. His benefits as a sponsored
child included receiving a monthly subsidy to assist with the ancillary costs of public school
education as well as free access to English and computer literacy classes at the foundation's
Page 37 of 41
Learning Center, situated right in the middle of their reforestation site and an organic farm. The
foundation noticed Romnick’s unwavering commitment to learning, and soon, he was
outpacing the other farmers' children in English proficiency at the GreenEarth Learning
Center. Through the foundation’s vision, dedication, and support, he gained a highly coveted
five-year scholarship at the country’s oldest international high school, the International School
Manila.
A member of the graduating class of the International School Manila 2017, Rom, as he is
called by his friends and family, received acceptance and full scholarships to Harvard University,
Dartmouth College, Wesleyan University, and New York University at Abu Dhabi. He has
accepted the offer from Harvard and will be matriculating in the fall of 2018, following a gap
year. “I selected Harvard for all that it represents. Its reputation precedes itself,” he shares. “I
love its motto, ‘Veritas: I will go where truth leads me.’”
While he was originally accepted for admission this September, he decided to take
advantage of a gap year, something that is becoming a popular choice for young adults today.
In its admissions letter, Harvard University encourages its incoming students to take a year of
deferral because of the benefits it has observed from those who have taken a year off before
starting college. “Before I got accepted to any college, I prayed to be able to take a break after
high school and so with Harvard’s outright encouragement, I decided to grab the opportunity.”
Page 38 of 41
Over the next 12 months Rom plans to learn practical life skills. He plans to learn how to
cook and drive, as well as play the guitar. He also hopes to travel around the Philippines. Not
one who cannot give back, he also plans to add more to his 1,500 trees—a Moringa Food Forest
he himself established over 5 years at GreenEarth Heritage Foundation. “Trees have a special
place in my heart as a farmer’s child who grew up in the mountains with various kinds of plants
and farm animals. When I entered ISM in the eighth grade, I could no longer plant as often as
when I was in the province. But since I really love planting, I would go to GreenEarth whenever I
have free time to plant trees. Over the last 5 years, I have planted over 1,500 trees, most of
which are the acclaimed miracle tree and superfood of the world, Moringa [Malunggay]. I gave
these to my father as my gift to help increase his weekly income.”
In addition to planting, he hopes to be able to conduct a theater class for farmers’
children and fellow scholars studying in the homeschool program of GreenEarth Heritage
Foundation as he loves to act and sing, and has pursued these interests through different
activities while at ISM. Rom was awarded "Most Outstanding in Theatre" for two consecutive
years, Grade 11 and 12, at ISM.
As Harvard does not expect its incoming freshmen to choose a course of study before
beginning their college education, Rom is keeping an open mind until he begins schooling, but
lists economics, environmental studies, math, and history as possible areas of interest. When
asked what his plans are after college, Rom says, "Right now, my mind is focused on preparing
for my next mountain to climb—Harvard. But if I may share what is in my mind—I yearn to see
many more farmers' children experience my blessings. If not for my foundation coming to our
neck of the woods teaching us to live, hope and dream and backing us up all the way, you
would not be writing about me today. There are a number of other farmers' children who are
very promising in our community. If only GreenEarth had more resources to look after many of
us, my beloved foundation has proven that it knows what to do to help get a farmer's child to
Ivy League! I pray more people will consider supporting us in our movement of transforming
land, transforming lives.”
For more information on the GreenEarth Heritage Foundation and how you can help, visit
greenearthheritage.org.
This story was originally published in the August 2017 issue of Town&Country.
Page 39 of 41
11.4 COST OF GOODS MANUFACTURED PER UNIT
Raw Materials Cost
Quanti
ty
Unit
Unit Cost
Qty per bar
Cost per 130g
Capacity/month
Total Cost
Caustic Soda Flakes
95.00
1,000.0
0
gra
m
0.10
13.04
1.24
1,000
1,238.56
Palm Oil
105.00
1,000.0
0 ml
0.11
29.17
3.06
1,000
3,062.50
Canola Oil
105.00
1,000.0
0 ml
0.11
25.00
2.63
1,000
2,625.00
Coconut Oil
105.00
1,000.0
0 ml
0.11
29.17
3.06
1,000
3,062.50
Lavender Essential Oil
214.00
30.00 ml
7.13
0.10
0.71
1,000
713.33
Orange Colorant
90.00
100.00 ml
0.90
0.30
0.27
1,000
270.00
Red Colorant
90.00
100.00 ml
0.90
0.30
0.27
1,000
270.00
Green Colorant
90.00
100.00 ml
0.90
0.30
0.27
1,000
270.00
Yellow Colorant
90.00
100.00 ml
0.90
0.30
0.27
1,000
270.00
Titanium Dioxide
50.00
100.00 ml
0.50
0.30
0.15
1,000
150.00
Preservative
90.00
120.00 ml
0.75
0.0001
0.0001
1,000
0.10
Distilled Water
25.00
25,000.
00 ml
0.00
31.67
0.03
1,000
31.67
Malunggay
400.00
100.00
gra
m
4.00
0.05
0.20
1,000
200.00
Tomato
20.00
250.00 ml
0.08
0.10
0.01
1,000
8.00
Goat's Milk
100.00
1,000.0
0 ml
0.10
0.10
0.01
1,000
10.00
Calamansi
1.00
5.00 ml
0.20
0.10
0.02
1,000
20.00
Papaya
15.00
250.00 ml
0.06
0.10
0.01
1,000
6.00
Direct Materials Used
130.09
PHP 12.21
PHP 12,207.66
Page 40 of 41
Direct Labor Cost
Capacit
y
Unit
Unit Cost
Qty per bar
Cost per 130g
Capacity/month
Total Cost
Preparation of Ingredients (Juicing)
6.25
50.00 pc
0.13
1.00
0.13
1,000
125.00
Soap Making (5 Processes)
46.88
50.00 pc
0.94
1.00
0.94
1,000
937.50
Quality Control (1st Phase)
31.25
50.00 pc
0.63
1.00
0.63
1,000
625.00
Packaging
31.25
50.00 pc
0.63
1.00
0.63
1,000
625.00
Quality Control (2nd Phase)
31.25
50.00 pc
0.63
1.00
0.63
1,000
625.00
Boxing
2.60
50.00 pc
0.05
1.00
0.05
1,000
52.08
Total Direct Labor PHP 2.31
PHP 2,312.50
Factory Overhead Cost
Quanti
ty
Unit
Unit Cost
Qty per bar
Cost per 65g
Capacity/month
Total Cost
Electricity
250.00
10,400.
00 pc
0.02
1.00
0.02
1,000
24.04
Water
100.00
10,400.
00 pc
0.01
1.00
0.01
1,000
9.62
Soap label & packaging
3.00
1.00 pc
3.00
1.00
3.00
1,000
3,000.00
Transportation
100.00
1,000.0
0
gra
m
0.10
1.00
0.10
1,000
100.00
Corrugated box
5.00
50.00 pc
0.10
1.00
0.10
1,000
100.00
Total Factory Overhead
PHP 3.23
PHP 3,233.65
Cost of Goods Manufactured PHP
17.75 PHP
17,753.81
200% Markup PHP
35.51
17,753.81
WHOLESALE PHP 35.00 RETAIL PHP 50.00
Page 41 of 41