Sudlanan Manufacturing

Company

Submitted by:

Alegoria, Krizzia Sthecy L.

Almario, Rei Anne Joy
Angeles, Rolando
Bulaong, Harlene Grace
Casas, Aleckz Cassandra
Delos Reyes, Vanessa
Dumoran, Narfel
Leobrera, Jemrick
Lumanglas, Kristel
Maglanoc, Francesca
Montemayor, Marcee
Monzolin, Joan Christine
Orbasi, Elvirra Marie Christine Claire P.
Roma, Jaizel Francine
Salvadico, Roselyn
Sanchez, Allen Cedric

BSA 1-6 Student-Researchers

Submitted to:

Mr. Clark Joed C. Otucan

Professor, Entrepreneurial Mind

February 15, 2021

I. Business Profile

➢ Description of the Business

The Sudlanan is a manufacturing business and will be registered as sole-
proprietorship wherein it offers an eco-friendly product that will help the people to reduce
using single-use items. The main product that the business offers is the tote bag wherein
the main material of the product is muslin cloth also known as katsa which can be found
locally in the Philippines. The Philippines is one of the countries that greatly contributes to
the deteriorating pollution and it became an opportunity to sell a product that helps lessen
the wastes produced by the country. Historical data shows that consumers prefer the
functionality and sturdiness of the material that they are using but in order to attain their
desired product they have to pay more that’s why the business will offer durable and
affordable products that are attuned to the needs of the youth. The business is internet
based and will cater the people of Manila as well as other potential consumers. The
business will use social media (e.g., Facebook and Instagram) to advertise the product
and its unique design. The product has a number of competitive features that will be used
to their advantage to achieve market penetration.

A. Innovativeness
The concept of producing a tote bag is not new in today’s market. Many
businesses have already established different types of strategy, hence, only few of them
lead the market. According to Harshita Chaudhary, M.S. Parmar, Navneet Kaur's growing
awareness of global environmental concerns have resulted in the development of
products, which are natural, renewable and biodegradable. These products do not cause
harmful emissions during production, service life and after disposal. The business
innovates and offers original designs to showcase the creativity of its people.

B. Social Impact
Economic growth is the increase in the market value of the goods and services
produced by the economy overtime. For businesses to gain and for the economy to grow,
stable environments, efficient institutions, functioning markets and access to suitable
financial services are all required. The business realizes that consumers are looking for
the functionality and sturdiness of the product and putting a business that sells eco-friendly
products will help more to develop the socio-economic condition of a country.

As the business provides affordable price, good quality service to consumers and
unique products to be popular in the future, the business will generate employees that
have exceptional skills. The business also aims to help indigenous students who are living
in the mountains to have good quality school supplies that they can use as one of the
corporate social responsibilities, once it achieves the target sales. The business will
 improve the product resulting in higher participation rates in satisfaction. By this means a
country can solve one of the challenges that cause difficulty in attaining economic growth.

C. Green Marketing
Green marketing means environmentally responsible business that takes into
account consumer concerns about promoting preservation of the natural environment. The
business highlight is the superior environment protection. The business also promotes
environmental activities such as:

● Green Promotion, it promotes environmental attributes of products

● Eco-Friendship, it includes wastes reduction activities to secure the health of
people, animal and the environment
● Eco-Sponsoring for environment related activities such as seminars, etc.

➢ Business Name

Name: Sudlanan Merchandising Business

Logo:

Sudlanan came from the Hiligaynon language, which means “container”. The
Hiligaynon language, also often referred to by most of its speakers simply as Ilonggo, is
an Austronesian regional language spoken in the Philippines by about 9.1 million people,
mainly in Western Visayas most of whom belong to the Visayan ethnic group, mainly the
Hiligaynon. It is the second-most widely spoken language and a member of the so-called
Visayan language family and is more distantly related to other Philippine languages. The
word Sudlanan is also written in Baybayin, it is an ancient script used primarily by the
Tagalog people. Baybayin is an indigenous Indic script that has been widely used in
traditional Tagalog domains. The term baybayin literally means, "to spell, write, and
syllabize" in Tagalog.
➢ Vision and Mission of the Business

Vision Statement: The Sudlanan envisions itself to be a well-known competitor in the local
industry and utmost provider of the best and exceptional bag in the country, offering cheap
prices but quality stunning products. The Sudlanan Company leads in creating eco-friendly
bags that can suit the needs of every person worldwide, thus making an impact on the
local product industry of the Philippines.

Mission Statement: Sudlanan is dedicated to provide effective, high-quality, eco-friendly

products with integrity that will satisfy each individual customer. The business also aims
to consistently provide the stunning and exceptional services in an ethical way to ensure
maximum satisfaction over the consumers. The business priority is to make excellent and
affordable products in order to exceed the prospects satisfaction as well as to build a long-
lasting relationship with them.

➢ Product Plan

Purpose of the product

Sudlanan would offer and provide the customers a durable and affordable bag
that can hold their important belongings. They can choose from a wide variety of designs
or create their own design.
Product’s Unique Features
Sudlanan has two unique features; first is the original designs that makes our
product unique from others. Second, our product is made not from any category of plastic
but its main material is muslin cloth also known as katsa, which is an eco-friendly material.
Below is the sample of the Sudlanan tote bag design:
II. Opportunity

● SWOT Analysis

Strengths Weaknesses

● Accessibility ● Lack of differentiation

● Spotting trends ● Don’t pay much attention to
● Stability marketing
● Customer Satisfaction ● No Physical Store
● Friendly Customer Service
● Design Capabilities

Opportunities Threats

● Take advantage of the ● Competition is fierce/increasing

increasing popularity ● Bad Reviews (e.g., Quality
● Can improve the materials used Issues)
(e.g., leather) ● Other companies offering low
● Growing Market price (e.g., Shopee, Lazada)
 ● PESTLE Analysis

Political Economical Social

● Implementation of ● Social Trends

Plastic Ban ● Inflation ● Lifestyle changes
● Business Law ● Raw material cost ● Networking Skills
(e.g., E-Commerce
Act/ R.A. 8792)

Technological Legal Environmental

● Machineries and ● Business License ● Eco-friendly raw

Equipment (e.g., registering materials
● Adopting hardware business name, ● Sustainability
and software registering with the ● Reusable
technology DTI, DOLE, BIR,
Pag-ibig,
PhilHealth, and
SSS)
● Courier’s
conditions and
policy
● Porters’ 5 Forces of Analysis
III. Business Model Canvas

IV. Customer and Market

Target Market
- Tote Bags, which is Sudlanan’ s main product has many good qualities. A product
that is stylish, affordable, roomy, and is comfortable to wear. This would appeal
and be valuable to people who looks for these characteristics when choosing bags:
students. Aside from students, Sudlanan’ s products also cater to online shoppers
and resellers.

Target Customers
a. Primary Customers: High School – College Students (18–24 years old)
- Students aged 18-24 years old and are in High School or College are the
primary target customers of Sudlanan. They were chosen because they
are the ones that need spacious, handy bags the most because of the
things they must always bring with them in school. Another reason is that
bags that would be of convenience without sacrificing their style and is
priced in a way that considers a student’s budget fits exactly what high
school and college students prefer.
 b. Secondary Customers:
- Online Shoppers ranging from teenagers to adults are the
secondary targets of Sudlanan. Since this business is mainly an online
store, it appeals to consumers that regularly shops online. It is a fast,
cheap, and efficient way to buy high-quality stylish bags which is what
online shoppers usually wants.
- Resellers that are either a business or an individual is another target
customer of Sudlanan. They are considered as one of our targets because
tote bags are products that appeals to all generations. Resellers could
easily make a profit with reselling tote bags which are often in demand
because of its affordable, durable, and stylish in nature.

V. Network and Team

 The type of network and team of the business is Horizontal or Flat Organizational
Structure, meaning it has less supervision to the employee making everyone involved in
making decisions for the business. This kind of structure gives the employee more
responsibility in the workforce making them improve their specific skills in their certain
profession. It also has an open communication that makes the employees extremely
aware of their objectives and activities in the business and helps them to be more flexible
in creating new and innovative ideas. This is also one of the reasons why employees are
extremely aware of their objectives and activities. Through the help of this type of
organization, it helps the business to maximize its resources for everyone needs to move
and has different specific goals.

The Chief Executive Officer is the most senior corporate, executive, or

administrative officer in charge of managing an organization; Chief Operating Officer is
responsible for the daily operation of the company; Chief Financial Officer is primarily
responsible for managing the company's finances, including financial planning,
management of financial risks, record-keeping, and financial reporting; Chief Marketing
Officer is the corporate executive responsible for marketing activities in an organization;
Chief Production Officer is responsible for various product-related activities in an
organization; The Chief Human Resource Officer is a corporate officer who oversees all
aspects of human resource management and industrial relations policies, practices, and
operations for an organization; Chief Research Officer is responsible for the research that
supports enterprise goals; Chief Communication Officer is the head of communications,
public relations, and/or public affairs in an organization and; the Chief Administrative
Officer is the top-tier executive who supervises the daily operations of a business and is
ultimately responsible for its performance. While the managers are the ones who managed
the firm and are responsible for the activities in and outside the organization.

VI. Revenue Model

1.) How the Business Earn Revenue?

The Sudlunan Company is a newly enter company when it comes to producing and
selling products. As a manufacturing, the company use markup model to setting up the selling
price as a good by adding profits and overhead charges to its cost price. The company is
adding 66% to the cost of goods sold to earn profit. The costing of product per unit is based
on how much the raw materials and other expenses needed to produce the product.

The following are the brief procedure on how the product can make available on the market
and how the customers can buy them.
 a) Pricing Strategy

The pricing strategy of Sudlunan is the skimming pricing because as a newly enter
business, the Sudlunan costs a lot to build this business and when they adjust on the business
and they can find new supplier where the costs of raw products is cheap that’s the time the
company can lower their prices and be ahead to their competitors. The company also use the
following where they follow the competitors’ price to blend in the industry and to let the customers
that the price the company’s setting is average price like others.

b) How the customers will pay for it.

The customers can also place their order through online platforms like Facebook and
Instagram and pay online basis like Gcash, Paymaya, Paypal and online banking. If it were to be
delivered through courier services, additional money would bead, and the approximate prices
would Php50 to areas within NCR, and Php150 to provinces outside NCR. However, prices may
still vary depending on the courier service that our consumers would choose or prefer. The tote
bag will be delivered to the customers/consumers at about a maximum time of 1-2weeks after
reaching all the agreements needed about the payment. Once all payment processes are done,
a tracking number would be provided for the convenience of the customers. Our Company would
also be sending updates from time to time through text messaging to notify the customers
regarding when they will be receiving the product.
1.) Pricing

To make sure that the Sudlunan Company will not encounter net loss, we should know how
to price our product and these are the steps in calculating them;

Step 1: Calculate the complete production cost for x units

Canvas=21,000 pesos for 300 pieces

Ink= 1,716 complete set colors

Printer machine= 1,353 pesos 13,550

Labor= 7,000 pesos

Water= 1,000 pesos estimated price

Electricity= 1,000 pesos estimated price

Total Cost=46,266

Step 2: Divide the cost by x units to get unit cost.

Total Cost=46,266 Number units=300

46,266/300= 150.88 pesos per unit

Step 3: Multiply unit cost by markup percentage. 150 pesos x 66%= 99 pesos will be the
markup that’s why the cost of product per each is 249 pesos.

Formula:

Unit price= 150 pesos Markup= 66%

Solution:

150 pesos x 66%= 99 pesos will be the markup

150 + 99= 249 pesos

249 pesos will be the cost of the product.

 ➢ Pricing Policy

Sudlanan’ s pricing will adopt a single price based on the product’s material costs, labor
costs and overhead. As such, below is the pricing scheme that will be adopted:

Product Cost Suggested Retail Price

Tote Bag 150.00 Php 249.00 Php

➢ Production Process and controls that will be used to manufacture the product

Stated is the production process of the tote bag:

Step 1: Decide on the size of your Tote Bag.

- The first step is to decide on a size for your tote bag. We start with the size
so we know how much fabric we need. Let the fabric dictate the size of the
bag, but either way we need to sort out dimensions before we start making
any thing.

Step 2: Figure out how much fabric you need.

- Now that we know our size we can lay out, and cut the fabric. The tote will
be made by folding a big piece in half, and sewing up both sides then the
bottom. We are going to need a piece of fabric that is long enough to create
both faces of the bag, and wrap under the bottom.

Step 3: Layout and cut the fabric.

- Now that we know how much fabric we need, it’s time to lay it out and cut
it. fold the fabric in half so you have one big rectangle in front of you. Figure
out how high up you want it to come, and go that far above the notches you
cut in the bottom. Leave a half inch to fold down to create a clean edge.
Fold the fabric in half and notch the corners to match up with the main fabric.

Step 4: Hem the top edge

- Before we attach the webbing, we are going to hem the top edge. You can
do this as the last step, but it’s a lot easier to do it well if we do it now so we
can lie it flat and make it easy.
 Step 5: Attach webbing handles.
- If you like to run my webbing all the way under the bag to make it a bit
sturdier and give it the ability to carry heavy loads. You can opt not to if you
won’t carry super heavy stuff, and instead of wrapping it under, you would
stop it just underneath where your reinforcement fabric would stop.

Step 6. Sew the side seams.

- The next step is sewing the bag closed, and making an actual bag, is to sew
the side seams.

Step 7: Sew the bottom shut.

- Up until now the bag has been layed flat, essentially folded in half. We are
how going to smoosh the bag open at the notches we cut so that the square
notches become to edges, a top and a bottom. At the corner notches,
smoosh the bag so it has volume. As you do this the notch will suddenly
turn into two edges, where the side of the bag meets the bottom.

2. Production

Packaging
The product will be folded in a rectangular shape and will be bonded by a
poster paper. Quotes and the name of the company will be attached to the paper to make
it more attractive and colorful. Since the company focus more on helping the environment,
we decided to wrap the product using paper instead of plastic since plastic is a toxic
waste.

3. Market
In this generation, the disruption of the surroundings is foreseen that's why
many entrepreneurs focus on ecofriendly materials on the production of their product. It
was really efficient as it grabs the heart of the consumer to buy such stuff. There are small
businesses who sell Tote Bags they sell it online and even on hand. The focus of the
company is on the affluent customer who can spend 249 pesos which is those students
who is high school to college level ages 12–24-year-old in any gender. Based on the
Philippine Statistics Authority, the population of people in the Philippines is 109,581,078
in the year 2020. 30,682,701 of it is youth ages 10-24 or 28% of the population. The
revenue model made by the company is production model which the company will
produce products and design it for the customers.
➢ Delivery Process
Customers have the option of buying the Tote Bags. It could be hand to hand
where the customer will personally approach one member of the company to make the
purchase possible. The customers can also place their order through online platforms like
Facebook and Instagram and pay online basis like Gcash, Paymaya, and PayPal. If it
were to be delivered through courier services, additional money would be added, and the
approximate prices would Php 50 to areas within NCR, and Php 150 to provinces outside
NCR. However, prices may still vary depending on the courier service that our consumers
would choose or prefer. The watch will be delivered to the customers/ consumers at about
a maximum time of 1-2 weeks after reaching all the agreements needed about the
payment. Once all payment processes are done, a tracking number would be provided
for the convenience of the customers. The company would also be sending updates from
time to time through text messaging to notify the customers regarding when they will be
receiving the product.

➢ Regulatory and other compliance issues

Sudlanan will be registered as a single proprietor enterprise with the Department Trade
and Industry provincial Office. A barangay clearance will also be secured before it applies
for a Mayor’s permit to operate as a manufacturer business enterprise. The BIR
registration will also be done after getting all the necessary registration documents and
permits from DTI, Barangay, and Mayor’s Office.

➢ Product Characteristics or Features

Sudlanan product has numerous of economical and exceptional features that will be used
to its advantage to achieve market growth.

•Selection of designs/ patterns – customers will be offered a range of handmade

designs and patterns to choose from, which are inspired by the ethnic groups in the
country.
•Sustainability of the product – the raw materials that will be used to produce the
product will have low environmental impact
•Affordability – the product is produced at a reasonable cost while upholding the
properties such as durability
VII. Strategies
● 7Ps

a. Product
This business gives such new ideas and creativity in an ordinary tote bag.
Instead of using the usual plastic or non-reusable materials, Sudlanan resorted to
using muslin cloth or katsa, which is reusable and eco-friendly. The business also
innovated the product by putting original and attractive designs which suits the
taste of the target market. It also accepts personalized designs for those customers
who want to put their desired design.

The Sudlanan is an on-the-go bag. It is reusable, lightweight and very

handy to use. It has a big storage where you can put all the belongings you want
to bring, whether big or small. It is also durable which makes it high quality and
can last for years. It can be also considered as a trendy bag because of its minimal
yet elegant design. And by purchasing this bag, the customers can also help the
environment to be more sustainable. These kinds of characteristics will be the
strong points of the tote bag that will also serve as its unique attributes among its
competitors.

b. Price
The price of the product is set to 249 Php. Psychological Pricing is the
pricing strategy applied by the business. In this strategy, the emotion of customers
is targeted rather than their logic. We clearly applied this pricing strategy,
specifically called charm pricing, by reducing the price by a minimal amount which
makes the customers perceive the price for less. In his book Priceless, William
Poundstone dissects 8 different studies on the use of charm prices, and found that,
on average, they increased sales by 24% versus their nearby, ’rounded’ price
points. As the word suggests, this is applied in order to charm customers and to
increase sales.

c. Promotion
For advertisement, Sudlanan being an internet-based business means that
promotion takes place on the internet as well. Social media platforms are being
used in promoting products. Advertisements are present in almost every platform.
The business will promote the product on Facebook and Instagram by posting
photos of the product to boost customer's interest. Facebook and Instagram are
the chosen platforms because according to Sprout Social Index, Facebook still
reigns as the most used social network in the world. In the third quarter of 2020,
the network reported over 2.7 billion monthly active users. This just shows how the
 business can be exposed to more people by doing so and gain more customers.
While on Instagram, the largest demographic on the network is women aged 18 to
24. This is aligned to the target market of the business and we can really attract as
much.

For promos and other special offers, freebies are given to customers upon
purchasing the product. These freebies are stickers and there are various designs
where they can choose from, which will be included in their package. During
special occasions or holidays, bundle promos are given. These offers are given to
earn the loyalty of the customers and to also attract the attention and interest of
other potential customers.

d. Place
Sudlanan is an internet-based business. All transactions are made online.
This business is established in Facebook and Instagram, where people can like
the page and can leave messages there if they are interested in buying. This set-
up is aligned to the 21st century method of business transactions. Electronic
commerce or e-commerce has made its way to conquer the global market.
According to data from Statistical, in 2018, an estimated 1.8 billion people
worldwide purchased goods online. In the same year, global e-retail sales
amounted to $2.8 trillion, and is projected to hit $4.8 trillion by 2021. With this
information in mind, it is definitely a good move to enter this market. People of this
generation also find convenience purchasing goods on the internet rather than
going to an actual store.

e. People

Each person in this business plays a major role in the success of the whole
enterprise. This company has certain people who are in charge of manufacturing
or creating the tote bag which are the laborers. There are also people in charge of
running the online accounts of the business like the Facebook page, Instagram,
Shopee and Lazada. They are the forefront people who handle customer queries
and respond to problems and customer's complaints. They are also responsible
for knowing the company’s products better and how to use them properly. These
people remain on track despite the changes, competitions, and conditions of the
business to still have consistent and profitable sales to have a result of an effective
and healthy marketing strategies among other business competitors.
f. Process
The tote bags are carefully made with attention to small details of design.
Each bag is handcrafted by the laborers and will be stored into a stockroom and
ready for selling.

The process of selling the product is trouble-free for the customers since
it is an online transaction. They can buy anywhere and anytime they want. First,
the customers can choose a tote bag they like depending on the designs or if they
opted to have a customized design. After choosing, the customers can place their
order by sending a message or checking out to any platform the business has
(Facebook, Instagram, Shopee, or Lazada). After having a conversation between
the person in charge and customer, the tote bag will be prepared to be shipped
with the address given by the customer. The person in charge of running the online
accounts of the business will inform the customer on how many days the order will
arrive. After the tote bag has been packed, it will be picked up by the courier and
it will be delivered to the customer. In this way, the efficient process of how a
customer buys can be the strength of the business to have more orders in the
future.

g. Physical Environment
Since the business will be online or internet-based, there will be no
physical store like stalls or establishments. But in the long run, the opening of a
physical store is foreseen. Its planned layout or interior design can be visualized
as minimalistic and at the same time, it can be viewed as an environmentally-
friendly place as it is what the business promotes. Plants can also be seen around
the premises which gives color to the planned layout of the business. But since the
business is situated online, the products can be ordered and bought by going to
its Facebook page, Instagram, Shopee, or Lazada account. It is very easy to
navigate for the convenience of the customers.
VIII. Plan of Action
a. Timeline (5-10 years)
Year 1(2021)
● JANUARY
- Brainstorming for product
- Product pitch
- Finalization of product idea and sketches
● FEBRUARY
- Conducting market survey (designs preferences)
- Contacting Manufacturers
- Raising funds
● MARCH
- Financial planning
- Product prototype samples
- Finalization of Product designs
● APRIL
- Creating an online shop in different social media platforms
- Boosting online platforms with ads and posters
● MAY
- Photoshoot of product and release of teasers on social media platforms
● JUNE
- LAUNCH OF THE PRODUCT

● JULY
● AUGUST
● SEPTEMBER Product Selling
● OCTOBER
● NOVEMBER
● DECEMBER

Year 2
● Open Business for Resellers
● Expand designs for tote bags

Year 3
● Continue Run of business
● Survey for product satisfaction and concerns of customers
Year 4
● Collaborations with bookstores or other small businesses
Year 5
● Plan to open a physical store
● New product Development

Year 6
● JANUARY - MARCH
○ Identifying consumer preferences and expectations through surveys
● APRIL-JULY
○ Brainstorming ideas with key employees about product development
● AUGUST
○ Preparation of marketing plans
Year 7
● JANUARY - FEBRUARY
○ Estimating the cost of product development
● MARCH
○ Launching Product Prototype
● APRIL-DECEMBER
○ Gathering data and insights
Year 8
● JANUARY-APRIL
○ Finalization of Product Development
○ Setting up price for the new product

● MAY
○ Product Promotion
○ Collaboration with retail stores
● JUNE - DECEMBER
○ Product Selling

Year 9
● JANUARY - JUNE
○ Implementing sales and promos
○ Giving freebies

● JULY - DECEMBER
○ Establishing another branch store

Year 10
● New product development
b. If business fails, what will be your alternative/s?

● Investing in other people’s startups

○ If the business fails, an alternative is investing in other people’s startups.
Investing is easier than running the business yourself but it can be risky.
● Create a business with another product
○ If the product that is currently on the market is not garnering profits, the
sellers can switch to another product.
● Attend entrepreneurship seminars to learn more about marketing and finance
○ If the business fails due to incompetence or lack of management, the sellers
can attend seminars to learn more and gain experience.
● Establishing another type of business (e.g., Service Business)
○ If the business fails, the sellers can try another type of business such as
service business.