R’ Collection

(Bags, Accessories and Apparels)

I. Executive Summary

I.1Company

R’ Collection is a start-up retail establishment that will sell

fashionable products such as bags, accessories and apparels
particularly to college students, career-oriented women and
housewives. Our store will be located at Taft Avenue Manila
known to be surrounded by different institution that will compose
its target market.

I.2Product and Services

We will tailor our inventory to meet the specific needs of

our clientele by closely following fashion trends as well as our
customers purchasing preferences. We will solely focus on the
styles and color that will fit our target markets needs.

I.3Market analysis

In the Philippines, the size of women population is much

greater than men. Most of them are responsible in budgeting the
household finances, but no one can stop them if they intend to buy
merchandise just to meet their wants.

I.4Strategy and Implementation

R’ Collection recognizes the importance of marketing. We

plan to promote our retail business with marketing campaign
which will include grant opening events and printed advertising.

I.5Management

Ms. Salazar, San Pedro, Andrade, Baguna, Emata and Mr.

Quimson and Hilario will co-manage R’ Collection, they’re all
graduates of Business Administration major in Marketing at
Universidad de Manila. This group of yuppies is well trained and
skilled in the over-all operation of a business.

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I.6Financial plan

The co-owners will equally share funds to put R’

Collection off the ground. They will use this resources for the
operating expenses needed for the continuous operation of the
business. Furthermore, the initial investment will used to purchase
retail supplies and equipment - all of which will produce future
benefits for the company.

II. Industry

II.1 Industry Overview

Rug industry in the Philippines increased in size that most
of our women take advantage for this opportunities. These highly
increasing small rug manufacturers limit their production in just
mere rugs to be sold for only P13 to P15 pesos with a profit of
P1.00 peso for every rug sold. Because of this slow profitability,
we find way to make these rugs sold in much higher price with a
competent profit that able to compete in the market.

We are aware that companies like Louis Vuitton, Chanel

and Prada are some of the bag producing company that
successfully participate in the market, and still many other
companies like Guess, Lacoste and Secosana who was known for
producing clothes and other apparels are now committed in
producing bags. This increasing trend of bag sells in the
Philippines bind in common reason to produce and to give the
customer a fashionable, classy bag. Aside from these companies,
most of us are also aware that there are unknown companies who
produces bags and sold in much lower price that we can see in
Divisoria, Avenida and Quiapo; but this bags that been sold in this
areas are justify as low quality product.

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This awareness leads us in producing a product that is

fashionable, quality and economical. Through innovating the
common rugs that we used we produced the R’ Bag. By producing
this bag we do not only provide an economical advantage to the
customer but also gives a social responsibility toward its suppliers.
The P1.00 peso profit that the rug manufacturer attains in selling
their rug can now increased in more than P150.00 pesos.

II.2 Position in the Industry

Manila is the center of trade in the Philippines which
composed of Students, Career-Oriented-Women and Housewives,
that are willing to spend wisely on buying products that will satisfy
their fashion needs.

This research shows that 7 out 10 would prefer to buy

fashionable and quality bags at low price rather than buying
branded bags.

II.3 Uniqueness

The Production of bags with the use of rugs is the primary

competitive advantage of our product that can compete with other
existing bags in the market. Its uniqueness in creation will become
its powerful tool that will satisfy the needs and wants of every
consumer in seeking a special quality for a particular bag.

III. Market Analysis

III.1 Target Customer

Our target customers mostly, are females. We group them

into three (3) main divisions namely: the college students,
career-oriented women, and housewives. We segment them
into narrow group so that we can easily distinguished and reach
our target market.

 College students - we will also be targeting the

college students who would always experiment on
their styles. These bags will test their ingenuity and
challenge their everyday style while either wearing

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their university uniform or just wearing their

civilian outfits.
 Career-oriented women - we will target those
career-oriented women who would like to
differentiate themselves from the normal look outfit
in their work fields. We would like to focus on
those people who would like to stand-out from their
office co-workers by wearing these high-fashioned,
very environmental-friendly bags while still looking
sophisticated, decent and presentable.
 Housewives – practical mothers are willing to
purchase commodities which will give them
complete satisfaction at affordable cost.

III.2 Market Size

Manila is the center of trade; it accommodates the highest

number of buyers in the Philippines. Most of the decisions when it
comes in buying came primarily from women which constitutes of
60% of overall population. Women are subject to buy whatever
products they want even if it cost unreasonable amount for them.
This is the reason why we choose women as our primary target
market.

III.3 Market Trends

We are aware that companies like Louis Vuitton, Chanel

and Prada are some of the bag producing company that
successfully participate in the market, and still many other
companies like Guess, Lacoste and Secosana who was known for
producing clothes and other apparels are now committed in
producing bags. This increasing trend of bag sells in the
Philippines bind in common reason to produce and to give the
customer a fashionable, classy bag. Aside from these companies,
most of us are also aware that there are companies producing bags
and sold in much lower price that we can see in Divisoria, Avenida
and Quiapo; but these bags that been sold in this areas are justify
as low quality product .

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IV. Competitive Analysis

IV.1 Competition

There are no direct competitor offering our unique product

feature or targeting our customer specifically. In the Philippines,
the stores that offer product under the same industry are as follows:

 Large and exclusive companies like Louis Vuitton,

Chanel and Prada.
 Known companies for producing clothes jeans and
dresses now engage in producing bag like Lacoste,
Guess and nine-west.
 Natasha, MSE, Sundance and Boardwalk offers
direct selling of bags and other products.
 Unknown companies produce bags that sold along
Divisoria, Ilaya and Quiapo.

IV.2 Competitive Advantages

 Eco-Friendly – helping people by teaching them to use
existing in creating/innovating another product for the
purpose of resale.
 Uniqueness – through using rugs, we are sure that we
would be the only niche fashion established.
 Reasonable Price – creating a valuable product that is
convenient to the consumers pocket is another edge
against our competitor.
 New trend and personalization – we offer a variety of
bags designs as well as accepting special orders to build
customer relations.
 Customer Service – product availability, fast delivery
and accepting returns are some of the services provided
for the consumer’s convenience.

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V. Marketing Plan

V.1 Product and Services

We will use rugs as the main material in producing R’

Collection Products. Our staff will provide customer service to
build goodwill among customer. Customization is another strategy
that will help the consumer to create their ideal product out of their
own ideas.

V.1.1 Advertising and Promotion Plan

This describe how R’ Collection is going to deliver unique

selling to prospective customer.

Advertising – the best and the most common way to

promote R’ Collection product with the use of
advertising media to open R’ Collection’s idea to the
public. We will use the following kinds of
advertisement on promoting our product:
o Radio
o Newspaper
o Flyers
o Poster/Print Ads
 Sales Promotion – R’ Collection will incorporate sales
promotion activities in our advertising and promotion
plan such as:
o Discount Cards
o Product Demonstration
V.2 Pricing Strategy

Competitive pricing with reasonable profit are the

strategies applied when it comes in pricing the products of R’
Collections. We can charge any price we want for every product
but the R’ Collection respect the consumer’s ability to pay that’s
why, in charging prices we make sure that we priorities to take
customers threshold into account.

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Another strategy that we consider is by examining the cost

of production and adding fair price for the benefit of both
producers and that of consumers.

We also find it useful that by examining competitors

pricing for closely related products will figure out and guide us on
what reasonable amount will be charge for the said commodity

VI. Management Plan

VI.1 Organizational Structure

As a small business, we will have a small staff. Both co-

owners will assume leadership roles within the company and will
be responsible for daily operation, overseeing marketing efforts,
buying merchandise and managing inventory and all other
administrative duties. A small sales staff will assist co-owners with
securing sales, assisting customers and general maintenance of
stock on the floor.

VI.2 Leadership

Ms. Salazar, San Pedro, Andrade, Baguna, Emata and Mr.

Quimson and Hilario will co-manage R’ Collection. However daily
activities will differ, Ms. Salazar and Ms. Andrade will manage the
day-to-day operations including supervising stock and maintaining
inventory and bookkeeping. Ms Emata and Mr. Hilario will
oversee the supplies availability for the store as well as
maintaining a keen awareness of trends within the industry. Ms.
San Pedro and Baguna will work with our public relation firms to
ensure superior marketing plans are in place and implemented. Mr.
Quimson will be responsible on product design and development
as well as the regulation of customizing the product.

VI.3 Staff and member

We will hire people needed for the production of R’

Collections’ products. They will be paid an hourly wage plus
commission and bonuses will be provided annually to encourage

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employee retention so that finding qualified employees will not be

an issue.

VII. Operating Plan

VII.1 Company and Industry

R’ Collection will be located in Taft avenue Manila. Our

company is a retail establishment selling fashionable women’s
bags, accessories and apparels.

VII.2 Legal Entity and Ownership

R’ Collection is a small business entity formally organizes

in the Philippines. Karminah Salazar, Jayvee Ace Quimson, Joanna
Marie Andrade, Denson James Hilario, Andrea San Pedro, Jay-ann
Baguna, and Marjorie Emata are the company’s principal owners.
We hold equal shares of ownership in the company.

VII.3 Facilities

Presently, R’ Collection has an identified ideal spot in the

Taft Avenue in Manila, wherein the manufacturing of the products
are being operated. The gorgeous area includes numerous food
chains, boutiques, hotels, malls, and universities. We have signed a
continuous lease for a 48 sq. meter space at P 3500.00 monthly
rent. The requisite of the property owner is to have slight internal
renovation such as installation of machines and decorative items.
We will conduct all aspects of our business from this location. This
includes deliveries and shipments, inventory management and
administrative duties such as finance, buying and marketing.

VIII. Financial Plan

VIII.1 Requirements

The owners shared equally to obtain the funds needed in

putting the business off the ground, we need P 100 000.00 as a
starting capital for continuous operation.

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VIII.2 Use of Funds

Funds will be used to pay for renovation, buying of

machines, raw materials, and other needed equipment for the
continuous operation of the business. The remainders of the start-
up funds will be utilize to cover operating expenses such as rent,
utilities, marketing costs, and wages.

VIII.3 Income Statement Projections

This table represents the capital and the needed expenses

for the R’ Collections.

R’ Collection
Income Statement

Capital P 100, 000

Expenses:
Advertising P 25 000
Materials and Equipment P 40 000
Rent P 3 500
Utilities P 5 000
Others P 1000
Total Expense (P 74 500)

Total P 25 500