Jecem Organics: A feasibility study on organic lotion bars Baquir, Eric Jr. J., Bigata, Clarissa Ann B., De Venecia, Jhoanne., Pastor, Elisa C., Tindugan, Franchesca Mayumi V. 6

Feasibility Study: (BSBA major in Marketing Management) - Pamantasan ng Lungsod ng Maynila, 2024 56

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Executive Summary: The Executive Summary is the concise overview and synopsis of the Feasibility Study. This contains information about the idea and findings in shorter terms to make the readers understand the whole study. This part includes the name of the company, the logo, location, description, long run objectives, as well as the financial assumptions and summary of findings. I. Name of Company JECEM Organics is a company dedicated to providing high-quality organic skincare products. The name of JECEM came from the initial names of five best friends which are Joanne, Elisa, Clarissa, Eric and Mayumi. While organics means loving your natural self and from the word itself organic, using organic ingredients, JECEM Organics promotes a healthier and more sustainable approach to skincare with a commitment to sustainability and eco-conscious practices. With a motto of Indulge Your Skin with Nature's Delight, you can count on our Organic Lotion Bar to provide the utmost moisturizing and soothing advantages while also helping to make the world a greener place. II. Company Logo The company logo has a mixture of green and gold with the company's name in it which came from the names of the five college best friends. The green and color symbolizes the green nature as it is where the main ingredients of the lotion bars came from. Also, green is a symbol of luck, while gold symbolizes fortune and elegance as the partners are hopeful for the fortune and the abundance that this business can give. This figure of bowl with a leaf also symbolizes the leaves as the name of the brand is JECEM Organics. III. Location of the Enterprise The JECEM Organics online store is accessible through its website, Shopee, and Lazada shopping platforms. Shopee and Lazada are the two biggest e-commerce platforms in the Philippines that employ businesses to sell products and consumers to buy desired products. The JECEM Organics online website is an online shopping site that offers convenient and direct engagement between buyers and JECEM Organics' products and services. The researchers found convenience for shoppers to access various online shopping platforms in terms of product availability, variety, price, and security. It also offers different payment methods, such as electronic payment, cash on delivery, installments up to 12 months, and door-to-door delivery. The manufacturing site for producing organic lotion bars is located at Evangelista Street, Kaingen, Bacoor City, Cavite, 4102. This land was via cash by the partners and was renovated to become their office and manufacturing site. The manufacturing building is composed of two stories on 6 meters by 10 meters of land. The JECEM Organic products that consumers ordered online are directly distributed from the manufacturing site and are well-packed and safe. IV. Description of the Business A business focused on organic lotion bars which is a type of skincare and beauty product. Organic lotion bars are a specific product within the broader industry of skincare and cosmetics. This type of business produces and sells organic skincare products, often with a focus on using natural, eco-friendly, and non-toxic ingredients. It's a niche within the skincare and beauty sector, catering to consumers who prioritize organic and natural ingredients in their skincare routines. JECEM Lotion Bars are crafted with care using the finest ingredients to provide nourishment and hydration for your skin. Each lotion bar has a shelf life of one (1) year from the date of manufacture and is good to use for up to three (3) months after opening if kept properly. V. Long-run Objectives Lotion is essential for every individual's daily routine. As a result, JECEM Organics produces a lotion bar that is made up of natural and organic ingredients. The following are the long-run objectives of JECEM Organics: 1. Product Expansion - Aside from organic lotion bars the JECEM Organics will expand its product line to include a variety of organic skincare products such as organic lip balms, body creams or facial serums which helps the company to reach more target markets due to the extended product line. 2. Zero-waste Packaging - JECEM Organics will strive to become a zero-waste or low-waste business, by implementing sustainable packaging and sources practices. 3. Research and Development - The JECEM Organics will invest in R&D more to help the company to continually improve the product formulations and stay at the forefront of organic lotion bars. VI. Financial Assumptions 1. Assets 1. The gross accounts receivable is estimated to be 2% of the gross sales of which 10% is estimated to be doubtful 2. The ending balances of raw materials inventories are estimated to be one months' safety stock while the finished goods inventory is estimated to be 5% of the Cost of Goods Manufactured. 3. The ending balances of supplies are estimated to be one months' safety stock. 2. Liabilities 1. Accounts Payable balance is equivalent to one-month purchase of inventories and will be paid on the following month. 2. Utilities payable are accrued and paid on the following month. 3. Taxes Payable will be paid for the following year. 4. The delivery vehicle is purchased by payment of 10% down-payment and 90% on account for five (5) years 5. The bank loan will be repaid for five (5) years. 3. Equity 1. The initial investment of the owner is P 1,500,000.00 2. The schedule of withdrawals is P 12,000.00 on first year and will be increased by P 12,000.00 annually. 4. Revenue 1. The Company will sell three (3) product variants, differentiated on the essential oils of the product offered, 2. The selling price per unit will be constant for five (5) years, as follows: The increase in sales is based on the population growth which is 7.6%. 5. Costs and Expense 1. Utilities are composed of electricity, water and telecommunication and will be increased by 2% annually. 2. The marketing and advertising expense will be increased by 3% annually. 3. Professional fee is paid to the bookkeeper and is P 4,000.00 monthly. 4. All costs of business registration are based on the fees and licenses provided by the National and Local Government. 5. Leasehold improvement is to be amortized for five (5) years. 6. Pre-operating costs are expensed outright. 7. The depreciation is computed using straight line method: 6. Taxation 1. Pursuant to National Internal Revenue Code, the income tax rates for domestic corporations are 25% except for corporations having net taxable revenue of less than 5 million pesos and total assets of less than 100 million pesos which is taxed at 20%. 2. All production employees are minimum wage earners and is not subject to withholding tax. 3. Final Withholding Tax payable on the distributive share in the net income of general partnership amounting to 10% of last year's net income of partnership. 7. Payroll 1. The salaries and wages are based on the required minimum daily wage mandated by Regional Tripartite Wages and Productivity Board (RTWPB) of Bacoor City, Cavite and will be increased by 2% annually. 2. All employees are presumed regular and are required for mandatory contribution such as SSS, PHIC and HDMF. VII. Summary of Findings The survey study consists of three parts with 14 questions. The first part focuses on the respondent's demographic profile, such as age, gender, monthly income, and current skin or health condition. The second part entails consumer perceptions regarding choosing skin care products. The third part evaluates the extent of consumers' preferences considering product features and quality. Based on the findings of the survey conducted, it was found that most of the respondents are female ages 18-28 years old with monthly income/allowance of P10,000 and above. A lot of respondents had dry skin conditions, and some had no skin/health condition. Lotion is the most frequent skin care product used by respondents, followed by balms, cream, serum, gel-based products, and those that don't use skin care products at all. Furthermore, most of the respondents prefer products with skin care benefits such as whitening, smoothening, vitamin C, and antioxidants. Product quality is the major consideration for respondents when purchasing skin care products, followed by benefits, ingredients, packaging, and variety.

Most of the respondents are willing to pay P250 pesos and above for skin care products. And they are more open to using sustainable alternatives than conventional ones. Lastly, the respondents strongly prefer skin care products with thinner consistency, lighter-weight, non-greasy, or less-greasy options, and those with natural benefits from organic ingredients. Overall, based on these findings, it can be concluded that JECEM Organics: Lotion Bar is feasible and has potential customers in the skin care industry.

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