Business Feasibility Analysis of the Radieux Whitening Face Powder

Topics: Human skin color, Human skin, Skin whitening Pages: 46 (8977 words) Published: June 25, 2012

Physical appearance is given much concern nowadays. Caring for and enhancing the skin has been a sense of duty to people, especially with women. The main objective of this study is to evaluate the formation of a business focused on the production of whitening face powders, with papaya as the main ingredient. The product is unique for it is the first fruit-based powder to be offered in the Philippines, organic and naturally-occurring. It is superior to the competition because powders are more frequently used than whitening creams because it can be applied on the skin as much as the consumer wants to. This project’s target market is women of different age groups from all over the country. The farm and production plant will be built in Cavite, the most strategic location in Southern Luzon and the nearest place to gather the supplies. The farm plantation will house the pre-manufacturing processes such as slicing, dripping, purifying, packaging and storing processes. The production plant will house the manufacturing processes such as mixing, pulverizing, filling, sealing, packing, and warehousing. The farm plantation will operate for 7 days during the first week of the month, and six days on the succeeding weeks. Two eight-hour shifts will is the required production schedule, each with 7 manpower requirements. The production plant will operate for 6-days a week, each with 8-hours only (1 shift). The manpower requirement for this is 4 workers. The product will be distributed to all parts of the country, and may well be marketed through direct selling, online advertisements, newspaper and local television ads. The product will be distributed in the market through trendy boutiques, shopping malls, and grocery stores. The company will offer the product in two sizes during its introductory stage. The 25g face powder will sell at a retail price of P15.00, and the 50g face powder at P25.00.

The initial cash needed to start the project is Php 18,830,126.68 which includes equipment costs, half year salaries of employees, the cost of land facilities and the buildings, advertisement, marketing, and 1 month inventory of raw materials. The initial capital required will be coming from both the capital of the company owners and from bank loans. Half the initial capital will be coming from the combined capita of the 3 owners and half the initial capital will be coming from a bank loan at the Landbank of the Philippines at 5% interest compounded annually. If based on selling price of P25.00 and P50.00 and operating time of 16 hrs and 8 hrs a day for farm and production plants respectively, 288 days a year, the project will earn back the investment cost within 2.5 years of production is held constant. On the other hand, computing for the payback period if the production is increased by 5% every year, the payback period would be 1.39 years only. Minimum Acceptable Rate of Return (MARR) is set to 15%, as this is the commonly used MARR. The computed Internal Rate of Return for this project is 64.526%, which is very attractive as compared to 15%. It will incur a Net Present Value of P139,766,000.00. Thus, with all these figures, it is fairly easy to gain profit from the said study and it proposes a very attractive investment. .


Executive Summaryi

Table of Contentsiii

List of Appendicesvii

List of Figuresviii

List of Tablesx


Objectives of the Study2

1.0 Market Feasibility3

1.1 Company Profile3

1.1.1 Mission3

1.1.2 Business Plans in the Future3

1.1.3 Quality Policy3

1.2 Product and Service Description4

1.3 Industry and Marketplace Analysis5

1.3.1 Potential Market6

1.3.2 Consumer Purchase Decision7

1.4 Marketing Strategy8

1.4.1 Target Customers8

1.5 Product Strengths and Weaknesses10

1.6 Competitors10

1.7 Pricing Strategies13

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