Feasibility Study: (BSBA major in Operations Management) - Pamantasan ng Lungsod ng Maynila, 2024.
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Executive Summary a. Business Description Bananny Cleanse is an innovative business dedicated to creating an eco-friendly, natural stain remover derived from banana peels through a fermentation process. This sustainable product leverages the natural compounds found in banana peels, such as potassium and enzymes, to effectively eliminate stains from various surfaces. Positioned as a green alternative to chemical-based cleaners, Bananny Cleanse targets environmentally conscious consumers who seek sustainable solutions for their household cleaning needs. The business will operate from a strategic location at the corner of Paz St. and San Gregorio St. in Paco, Manila, which serves as the central hub for warehousing, manufacturing, and retailing activities. This location facilitates easy access to local markets and food processing centers for sourcing banana peels while ensuring effective distribution of the final product. The name Bananny Cleanse reflects the company's mission to repurpose banana peels that are often discarded as waste into a valuable, effective cleaning solution. The idea for this venture stems from a growing awareness of the environmental impacts associated with conventional chemical cleaners, alongside a desire to create sustainable alternatives. The management structure of Bananny Cleanse consists of 2 key personnel: the Chief Executive Officer (CEO), a sales/production staff. The CEO oversees the overall management and strategic direction of the company, setting long-term goals and making critical business decisions while representing the company to the public. The sales/production personnel is responsible for promoting and selling the stain remover, understanding its unique selling points, and building strong customer relationships while overseeing the entire production process, from sourcing raw materials to packaging the final product, ensuring quality and compliance with safety standards. b. Market Analysis The eco-friendly cleaning products industry is experiencing significant growth as more consumers shift toward sustainable, non-toxic alternatives. The global market was valued at $270.89 billion in 2022 and is projected to reach $430.61 billion by 2030, growing at a rate of nearly 6% annually. In the Philippines, cleaning product exports amounted to $62.5 million in 2022, while imports totaled $358 million. This growth is driven by rising consumer demand for eco-friendly products, innovation in natural ingredients, and the increasing popularity of online sales. Regulatory agencies such as the DOH and DENR play a key role in ensuring the safety and sustainability of cleaning products. The primary target market for eco-friendly products includes eco-conscious households, particularly mothers looking for safe, non-toxic cleaners for their families. The product also appeals to individuals with sensitive skin, pet owners, and young adults who are environmentally aware. The demand for eco-friendly stain removers is expected to rise significantly, with projections indicating an increase from 387,918 units in 2025 to 436,605 million units by 2029. However, the market is currently under-supplied, with competitors offering limited eco-friendly options. Major competitors like Domex, Mr. Muscle, and Lysol dominate the broader cleaning market, but the eco-friendly segment remains relatively untapped. Bananny Cleanse stands out by offering a unique, natural, and affordable stain remover made from banana peel, a product that aligns with the growing consumer demand for sustainable alternatives. c. Marketing Feasibility Cleaners dominate local retail spaces, the growing consumer demand for eco-friendly alternatives positions Bananny Cleanse to capture significant market share with the innovative banana peel-based stain remover. The stain remover is crafted from fermented banana peels, ensuring a safe, effective, and natural solution for removing stains from various surfaces. The business emphasizes quality control, sustainability, and continuous product improvement to build consumer trust and meet evolving customer needs. Pricing research indicates that a selling price of P65 which aligns with consumer preferences, balancing accessibility and profitability while appealing to eco-conscious buyers. To promote the product, the business will implement a marketing strategy, including engaging social media campaigns, influencer partnerships, and in-store promotions. The tagline, Banishing Stains, Naturally encapsulates the product's core benefits and highlights its natural ingredient. By leveraging digital marketing, public relations, direct outreach, and attractive sales promotions, Bananny Cleanse aims to establish itself as a leader. d. Technical Feasibility To successfully launch the banana peel-based multi-surface stain remover, Bananny Cleanse must invest in the necessary machinery and equipment essential for efficient production and consistent product quality. Understanding the customer journey-from awareness through to purchasing, usage, and disposal allows the company to identify areas for improving customer experience, such as enhancing packaging and providing clear usage instructions. The production process involves several key steps: sourcing banana peels from local suppliers, boiling and filtering to extract natural cleaning agents, fermenting the solution to enhance its properties, packaging the final product, and distributing it through various channels. Utilizing a Gantt chart helps streamline production by visualizing timelines and tasks, ensuring timely delivery and efficient resource allocation. e. Management Feasibility Bananny Cleanse is an eco-friendly business focused on producing and selling a natural stain remover made from banana peels. Operating under a manufacturing and retail model, the company targets environmentally conscious consumers through direct sales and partnerships with eco-friendly retailers. Committed to sustainability, Bananny Cleanse sources banana peels from local households and food establishments, reducing waste and promoting community involvement while adhering to health and safety regulations. The organizational structure features a CEO and an employee, ensuring clear communication and efficient decision-making. The company's vision is to redefine the cleaning industry with innovative, plant-based solutions, while its mission emphasizes high-performance products that encourage environmentally responsible consumer choices. With operational policies that include quality control, effective inventory management, and strategic marketing, Bananny Cleanse aims for profitability within two years, supported by strong financial and human resource policies that foster a positive work environment and employee development. f. Financial Feasibility Bananny Cleanse is primarily funded through a P365,000 personal investment from Tyrone Alexander T. Asperas. This capital is allocated to cover product development, materials for fermentation, packaging, testing, and initial marketing efforts, establishing the foundation for product testing and market entry. Financially, Bananny Cleanse shows strong profitability with gross profit growing from P858,629.51 to P883,660.79, and net income from P358,913.65 to P354,303.28 over the years. Although profitability is strong, there is a slight decline in returns on sales, assets, and equity due to increased operational costs. However, the company maintains a healthy return on investment (ROI) ranging from 0.98 to 1.02, indicating the business consistently generates returns near or above the initial investment. The company's liquidity is exceptional, with both the current ratio and cash ratio steadily increasing from 8.93 in 2025 to 9.76 in 2029, showing that Bananny Cleanse can comfortably cover its liabilities with cash. This indicates solid short-term financial health. Stability is also evident, with a low debt-to-equity ratio of 0.11 to 0.12 and a debt ratio of 0.10 to 0.11, reflecting minimal reliance on debt. The company also shows a strong ability to manage interest payments, with a stable times interest earned ratio of 5.00. Key assumptions include a 20% income tax rate and a 1% percentage tax rate, and the business being classified as a corporation. g. Socio-Economic Feasibility Bananny Cleanse can significantly contribute to both local and national economies by creating direct and indirect employment opportunities, generating revenue through product sales, and increasing tax revenues. This business model not only stimulates economic growth but also promotes sustainability by transforming banana peels into a valuable resource, aligning with environmental conservation efforts. Moreover, the development and commercialization of this innovative product can enhance entrepreneurship and drive regional economic diversification by creating new market opportunities. If the stain remover gains popularity and meets international standards, it could be exported, generating foreign exchange earnings and promoting the country's brand on a global scale. In terms of societal impact, the business fosters environmental sustainability by using natural ingredients and reducing waste, offering a safer alternative for cleaning. This eco-friendly approach supports global sustainability goals and contributes to a healthier planet for future generations. Additionally, the venture can empower communities by creating jobs and stimulating local economies, ultimately enhancing community well- being and promoting sustainable practices that support local industries. Bananny Cleanse holds the potential to drive economic development, encourage sustainability, and improve societal outcomes on multiple levels.