This part presents the gap between the initial implementation and actual implementation of the project based on the four major components of feasibility study which are the Management, Marketing, Technical and Financial aspect of this study.
The proponents implemented their feasibility study on Timeless Shoe Polish last February 2018. Their main objective was to determine who will be the target market for the Timeless Shoe Polish and identify how many Timeless Shoe Polish needed to be produced in order to gain more profit.
During the initial implementation, each proponent had a specific function according to their assigned work. Charizza Lou A. Villegas as Store Manager, Precious Angelica M. Ranggas as Accounting Manager, Ethel L. Narsico as Operation Manager, Jorvin M. Labitad as Production Quality Manager, and John Paul D. Sang-an as Marketing Manager. Each proponent was clearly given their different functions and had their different duties and responsibilities.
However, during the actual implementation of the project, it was observed that the tasks and duties given to them were not followed.
There were changes that happened upon the business operation. Where, Mr. Jorvin M. Labitad who is assigned as the Production Quality Manager became the Marketing Manager and
Mr. John Paul D. Sang-an as the Marketing Manager became the Production
Due to this result, the proponents realized that there were conflicts that happened upon distributing the functions given from the manager. Despite of that, the proponents try their best to operate the business well and conquer conflict of functions.
They strengthened their cooperation and became united.
During the initial implementation, the proponents targeted the junior high school students as well as the senior high school of San Agustin Institute of Technology with age of 13 to 23 years old.
During the actual implementation of the project, the proponents targeted parents with the ages of 26 years old and above. All throughout the implementation, the proponents realized that junior high school and senior high school students contributed less percent of sales. Proponents also realized that parents have bigger income and have the capacity to buy the product. Thus, the proponents generated a total sale of P2,880.00 and a net income of P1,240.
Furthermore, the proponents realized that it is hard to sell it inside the school campus, the proponents had decided that each one of them has to market it in the public schools near their houses and respective barangays.
During the initial implementation, the proponents targeted to operate within eight (8) months and produce 50 pieces per day of Timeless Shoe Polish. The proponents will also operate once a week. Therefore, there are 150 pieces of Timeless Shoe Polish produced within one month.
In the actual implementation, the proponents operated once in every two months and produced 30 pieces of Timeless Shoe Polish every production because the product is still new to the market. Based on the implementation of the project, the proponents were able to produce the right projected production volume.
During the initial implementation of the project, each proponents contributed one thousand pesos (1,000) and start up the business with the initial capital of five thousand pesos (5,000). The proponents gained a gross sale of Php 27,072 and a net income of Php 9,024.
During the actual implementation of the project, the proponents were only able to get a gross sale of Php 2,880 and a net income of Php 1,240. The proponents were not able to achieve the projected gross sale due to the fact that the proponents are still lack of effort to market the product. Also, the consistency of selling period.
Table 20. ACTUAL INCOME STATEMENT OF TIMELESS SHOE POLISH
Table 21. CASH FLOW STATEMENT of TIMELESS SHOE POLISH PRODUCTION for 8 months.
Table 22. BALANCE SHEET of TIMELESS SHOE POLISH PRODUCTION for 8 Months.
BEP = (Total Sales) (Total Fixed Cost)
= (2,880) (260)
= 20 pieces
The company needs to produce more than 20 pieces of Timeless Shoe Polish to generate profit.
The total asset turnover ratio is 0.46; it means that the business used its assets efficiently to generate sales.
The company has 0.24% rate of return on its investments.
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
This part presents and summarizes the findings, conclusions and some of the recommendations made by the proponents.
The purpose of the proponents in conducting the study was to determine the feasibility of Timeless Shoe Polish project. Specifically it aimed: to determine who will be the target market for the Timeless Shoe Polish; identify how many Timeless Shoe Polish needed to be produced in order to gain more profit; find out will the target market be satisfied with quality of the product; know whether the proposed product become profitable after its initial implementation.
The project was implemented by the AFC Company with the following proponents: Charizza Lou Villegas as store manager, Precious Angelica Ranggas as accounting in-charge, Ethel Narsico as operation in-charge, Jorvin Labitad as production in-charge and Jhon Paul Sang-an as marketing in-charge.
The project was initially implemented last February to September 2018 with an initial capital invested amounting to Php 1,000 per proponent.
The study revealed that Timeless Shoe Polish was acceptable by the parents with age ranging from 26 above, dominated by females with a minimum income of Php 1,501- 1,800 and above per week.
Proponents found that during the actual implementation they were capable and able to produce 30 pieces every two (2) months which made them to earn more profit during the 8-month operation.
The study revealed that the target market was satisfied with the quality of the product because it is safe to use, effective with satisfactory quality and attractive appearance that captured the attention of the customers and encouraged them to buy.
The study further revealed that the Timless Shoe Polish was able to generate 20% profit per piece and 1.80% return on investments despite of displaced location and inconsistency of production.
The proponents consider the 4P’s in marketing strategy: product, packaging and labeling, promotions and price in order to become a profitable business.
Based on the summary of findings, the following conclusions were made:
The proponents target market of Timeless Shoe Polish came from the 26 years old and above composed mostly of females and are mothers of school age children.
The proponents have proven that it was feasible to produce less than 30 pieces of Timeless Shoe Polish every 2 months.
To capture the attention of the target market, the proponents realized that continuous product development and effective strategies must be applied. The word-of-mouth selling strategy plus the actual shoe polish sampling was effective in marketing the Timeless Shoe Polish.
The proponents revealed that the customers were very satisfied with the product quality and affordable price. The proponents were able to achieve a net profit of 20% per piece of Timeless Shoe Polish. It indicated that the business was profitable and feasible.
Moreover, the proponents proved that the business can really operate the market even in the eight months of implementation and potential entrepreneurs can possibly double their investment.
Based on the conclusion, the following recommendations are considered:
1. The proponents need further research to prove the effectively of the proposed product.
2. The proponents need to acquire additional investment or financial assistance from the Local Government Unit or from DOLE to continue the operation.
3. The proponents need to register their company and product to the Department of Trade and Industry to avoid duplication.