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Feasibility Study

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Feasibility Study
CHAPTER 1

The Problem and its Setting According to Angela Richard, “There are four basic reasons of wearing clothing: clothing for protection, clothing was worn for decoration, clothing was worn out of modesty and clothing was worn to denote status. Dressing the body comes from the decorations of the self, modesty, protection and status. It develops the important motivation for elaborate development of complex forms of clothing. “ Costume is a more distinctive form of clothing, including official or ceremonial attire such as ecclesiastical vestments, coronation robes, academic gowns, armor, and theatrical dress. The purpose of wearing a costume during ancient times was to emphasize social position by a great display of trophies, charms, and other valuables to enhance attractiveness. In the current Philippine setting, many people struggle for the need of money due to extreme poverty and some people would venture or devote their time and effort in searching and collecting for something valuable in piles of trashes; however with proper use of mind, creativity eventually sets in. “Up cycling” describes the process of process of re-purposing discarded or damaged items into a useful new object. Despite the many negative comments about the Philippines that quite often overshadow the positive, there are definitely so many things to be proud of, for the Filipinos are renowned all over the world for creativity. While being creative is not an exclusive trait possessed only by Filipinos, what make them distinct are the artistry, expressiveness, spontaneity, and humor that altogether define Filipino creativity. As millions of people purchase ready-made costumes, they only wear them once, and then cast them off if it is not needed. As a replacement for of filling up landfills with once-used plastics and fabrics, they get creative by consulting an artist and come up with own unique look with reused and recycled materials. Recycled costumes stand out because they are unique and handmade. They will definitely save money, as well as reduce impact on the planet. The researchers conducted this feasibility study to conclude the viability of establishing a business that offers production and rental services of eco-friendly costumes. The researchers also want to render better service by providing the opportunity for fellow Filipino people to showcase their talents and abilities through this kind of business, thus, providing them with stable employment as well as market their skills in a wholesome way.
Statement of the Problem The main thrust of the study was to determine the viability of “Rental of Eco-Friendly Costumes in San Juan City.”
Specifically, the study sought answers to the following questions related to the different aspects of business operations.
The Marketing Aspect
1. What are the opportunities and threats of this business?
2. What factors of external environment are expected to affect the business?
3. What are the current demand and supply conditions of the market?
4. How much gap between the demand and supply?
5. Who will be the possible target market?
6. What promotional strategies could be useful to inform the customers about the existence of the business?
7. What pricing strategy should be adopted?
8. Where is the feasible location of this study?
9. What portion of population is in the great demand for services?
10. What are the needs and expectations of customers in this kind of business?
The Management Aspect
1. What form of business ownership will be adopted?
2. What are the necessary pre-operating procedures in establishing the proposed business?
3. How many workers are needed and what are their duties, responsibilities, and qualifications?
4. Who will compose the organizational structure?
5. What is the compensation scheme that would be applied?
6. How will the management set the working environment for the employees` comfort and convenient?
The Technical Aspect
1. What are the sources of materials to be used in the business?
2. Where will the service be performed?
3. How is the workflow process?
4. What kind of labor is needed in the operation?
5. What are the necessary utilities needed in the operation?
6. What will be the methods of waste disposal?
7. What will be the provision of service?
The Financial Aspect
1. How much capital will be needed in establishing the business?
2. How much capital will be spent for the acquisition tools and equipments to be used in the operation?
3. What are the possible sources of capital?
4. Is the business liquid enough to pay its obligation?
5. Is the business profitable?
The Socio-Economic Aspect
1. How will the business be taxed according to the provisions of the government?
2. How will the proposed business affect the local economy?
3. How will the community benefit from the proposed business?
OBJECTIVES OF THE STUDY This feasibility study presents the researchers’ aims and purposes so as to impart knowledge on how to establish a production and rental services of eco-friendly costumes effectively and credibly. This will cover aspects including:
The Marketing Aspect
1. To identify the opportunities and threats of the business.
2. To determine the factors in the external environment, which are expected to affect business operation.
3. To determine the demand and supply conditions of the current market.
4. To determine the gap between the demand and supply.
5. To know the possible target market.
6. To specify the promotional strategies that can be useful to inform the customers about the existence of the business.
7. To know the pricing strategy that should be adopted in the business.
8. To know the feasible location of this study.
9. To know the portion of population in great demand for services.
10. To identify the needs and expectations of customers in this kind of business.
The Management Aspect
1. To identify the form of ownership in the business.
2. To identify the necessary pre-operating procedures in establishing the proposed business.
3. To identify the number of workers needed and determine their duties, responsibilities and qualifications.
4. To determine the people needed in the business.
5. To identify the compensation scheme that would be applied in the operation.
6. To form a concrete management set the working environment for the employees` comfort and convenient.
The Technical Aspect
1. To determine the sources of materials to be used in the business.
2. To determine the location of the business.
3. To make a plan for the work flow process.
4. To determine the labor needed in the operation.
5. To determine the necessary utilities needed in the operation.
6. To determine the methods of waste disposal needed in the operation.
7. To make guidelines for the systematic provision of service.
The Financial Aspect
1. To know the initial capital needed in establishing the business.
2. To know the capital used for the acquisition tools and equipment used in the operation.
3. To determine the possible sources of capital.
4. To know business potential to pay its obligation.
5. To prepare financial statements over 5-years operating period.
The Socio Economic Aspect
1. To determine the business` taxing system according to the provisions of the government.
2. To explain the effect of business in the local economy.
3. To enumerate the benefits the proposed business in the community.

Significance of the Study The result of this feasibility study aims to benefit the following groups, which includes: The students and faculty of the Centro Escolar University; it would serve as a reference and additional information about the proposed service oriented business and give an inspiration to those who would be interested at the study.
The Costume enthusiasts and costume rental business owners, this study’s result will be to provide a great opportunity for them to maximize their potentials in designing and artistry through providing a better future business venture.
Entrepreneurs, the study could be a source of knowledge and a guide to those who are starting a business in renting garments, specifically, costumes.
The government and local agencies, it will give a significant contribution to the government as well as its agencies through the taxes that are collected.
The society along with the community, since this study focus on pushing through an advocacy of embracing the process of 3Rs hence, not only the business provides employment for the society but also it promotes a healthy environment for the community.
Scope and Delimitations of the Study The proposed business venture would concentrate on providing rental services mainly to cosplayers, models, students, and other costume enthusiast. Their planned location is in San Juan City, Metro Manila. The Marketing Aspect as the “lifeblood”, this entails the general bottom line question whether the target market will patronize the product.
The Management Aspect, where in the precise identification of the project originators, project schedule, form of ownership of the business entity, manpower level requirement, organization chart or the chain of command, and the compensation scheme are discussed.
The Technical Aspect, where the technicalities and basic structure of the proposed study are discussed. This includes the list of equipment, materials, structural plans and also the source of the supplies to be used in the proposed project, utilities, facilities, layout designs and location.
The Financial Aspect, quantifies the all results and matters involving money and financials.
The Socio-economic Aspect, that explains to all the concerns and effects to the society and to the economy that the business will contribute. Time constraints, prevent the further preparation for the researchers to gather more detailed data on the project. Due to confidentiality, the researchers are unable to gather sufficient relevant information about prospective competitors. Also, as students we’re financially limited.
Definition of Terms
The following terms are defined for better understanding of the readers:
Costume. It refers to the artistic arrangement of accessories in a picture, statue, poem, or play, appropriate to the time, place, or other circumstances represented or described, or to a particular style of clothing worn to portray the wearer as a character or type of character other than their regular persona at a social event such as a masquerade, a fancy dress party or in an artistic theatrical performance.
Eco chic. It relays to the environmentally friendly and ethical design that does not sacrifice quality or style, the combination on both trend and the environment.
Eco-friendly. It is a term used to refer to good and services, laws, guidelines and policies claimed to inflict reduced, minimal, or harm at all, upon ecosystems or the environment.
Environmental sustainability. It is the maintenance of the factors and practices that contribute to the quality of environment on a long-term basis.
Fashion. It is a general term for a popular style or practice, especially in clothing, footwear, accessories, makeup, body piecing, or furniture.
Land fills. It is the disposal of refuse and other waste material by burying it and covering it over with soil.
Scrap. It consists of recyclable materials left over from product manufacturing and consumption, such as parts of vehicles, building supplies, and surplus materials. Unlike waste, scrap can have significant monetary value.
Sweatshop. It is a shop or factory in which employees work for long hours at low wages and under unhealthy conditions.
Up cycling/ Recycling. It is the process of converting waste materials or useless products into new materials or products of better quality or better environmental value.
Review of Related Literature and Studies This is composed of related literature and studies pertaining to Production and Rental Services of Eco-friendly Costumes
Foreign Literature According to the study of Brown (2011) entitled “Recycling Thesis Statement”, recycling is essentially a process of conversion of waste into more useful products. It forms the third spoke in the waste management wheel, alongside “Reduce” and “Reuse”. The extraction of useful products from existing waste in an environmentally responsible way is crucial to efficient waste management, especially in light of environmental concerns raised since the latter half of the 20th century. Recycling today is targeted at the collection of recyclable material, such as glass, paper, metal, plastics, textiles and electronics, and the subsequent extraction of reusable, useful raw material from it. Technically, the textbook definition of recycling would entail the reproduction of material bearing the exact characteristics of the original waste. That is, a piece of paper would be recycled into another sheet of paper bearing similar qualitative characteristics. However, practically, this is expensive and energy intensive. Thus, most waste materials are recycled into alternative products or materials. For instance, a scrap piece of paper might be recycled into rough paperboard instead. Recycling is a crucial component of modern waste management practices. It forms an integral part of the 3Rs concept or waste disposal hierarchy of ‘Reduce, Reuse and Recycle’. It can vastly reduce pollution and environmental stress. At the same time, recycling has emerged as a veritable industry in its own right in the past few decades, generating employment for hundreds of thousands of people across the globe. Martinez (2010) wrote an article entitled “Eco-friendly Fashion.” It says that times have changed though, and so many people now have learned that living on Earth entails a bit more social responsibility. Irreparable damage to the environment is happening every day, and if nothing is done about it, our natural resources will all be exhausted eventually. Martinez said “Being green or eco-friendly does not need to be drastically life changing. We can do it one step at a time. We can start simply with our clothes. Eco-friendly fashions are growing in popularity recently, along with other eco-friendly products.”
Here are some tips on how to operate an Eco-friendly fashion business:
First of all, the businessman should be aware about who has manufactured them and where. So many textile and clothing companies have outsourced their manufacturing processes to countries like China, Sri Lanka or Cambodia because labor is cheap. There should be nothing wrong about that, except that these companies must engage in fair trade and make sure their workers are working under humane and favorable conditions.
Sweatshops where employees are overworked and underpaid should not be tolerated. Looking into how these manufacturers also give back to the community is another way of measuring their sense of social responsibility.
Eco friendly clothing should be made with a high percentage of organic materials or reusing fabric scraps. Examples of eco-friendly fabric are organic cotton, soy, hemp clothes and bamboo.
Extensively produce clothes that have as less impact to the environment as possible. Plus, there are numerous websites that could help you find eco-friendly clothing options, without having to spend a fortune. Stefanie Dörre (2008) in the article “From Old to New – Recycling Fashion”, with the subtitle: “Combating the throw-away mentality” talks about Simone Graber and Jasmina Frank in Munich work with basic cuts that they combine with various recycled fabrics to create a collection that can be classed as streetwear. In 2004, communication designer Simone Graber founded the label Luxusbaba- a made up word – as part of her degree dissertation. “Fashion is incredibly short-lived and the thought was: Let’s get involved in combating the throw-away mentality by taking the huge mountain of raw materials and turning these into new things.”
Pertaining to the study, these articles in particular may serve as a form of idea for the proponents to consider recycling their waste into much more improvise things to increase the effectiveness with regards to waste management and as well gives the researchers the concept on how to handle business fairly and to seek another alternative materials for the creation of fashion products to facilitate people especially the environment. It also shows that by combining different raw materials it could create new things. Fashion has a short life span, therefore the proponents can convert the waste materials into a new product that can become a trend again in the market just like introducing a new product to the consumers. The proponents can follow easily the trends even in different kinds of events. In these articles it shows how to be a flexible and sustainable business fashion owners.
Local Literature PRETTYMOM bloggers’ review (2012) entitled “Eco-friendly Costumes”, the publisher had a friend who made new costumes, dresses and gowns for few months now that is made out of Star apple leaves for contest. However, one of his candidate won first runner up and has a chance to join the next level of competition and since the old one that is made of Star apple leaves is already worn out the local designer decided to create a new gown but the blogger haven’t seen the latest creation of the blogger`s friend. In fact, the designer has few gowns and costumes of his own for rent. In addition to that the publisher mentioned and shared brief information of the designer. In Cebu Daily News (2012), entitled “Students ramp with recycled costumes; CIT-U wins contest”, it is discussed that the costumes are made from discarded tarpaulins, sacks, papers and other waste materials during the 1st Green Fashion Revolution organized by the Aboitiz Foundation scholars. The team from Cebu Institution University was proclaimed champion for coming up with clothing pieces made of twisted papers placed against mosquito nets. The CIT-U team received P20, 000 while its partner community, barangay Labangon will be given a seed money of P40, 000 to implement the students’ chosen project. Philip Celerines, a Civil Engineering student who led the CIT-U group and who designed the dresses, said they will coordinate with the foundation in implementing their aqua phonics project, a method of propagating crops using only water. They plan to breed freshwater fish and grow vegetable crops, with the fish waste used as fertilizers for the crops. Women in the barangay will then be tapped to use these crops either for their consumption or by selling them for their livelihood. This will help community especially different Barangays. They said that they will pushed for the fashion show to promote the Aboitiz Group’s five sustainability pillars: re-use, rejuvenate nature, reduce consumption, rechange communities and use of renewable energy. Cabal’s (2012) Lifestyle Inquirer, entitled “The Green fashion movement hits Manila-and how”, says that as part of the growing awareness of ecological sustainability, the Look of Style Awards 2012, with the British Council of the Philippines and Inquirer Lifestyle, this year has the design theme “EcoChic fashion.” It challenges young designers to create wearable clothes that are environmentally sound. The winning designer, to be chosen by a distinguished panel of fashion designers, will receive business mentoring, a spot in Inquirer Lifestyle’s next Face Off fashion show, and an all-expense-paid trip to London, where he or she will have the opportunity to enroll in a short course at the London’s prestigious Central Saint Martins. The finalists include Cebuanos Mike Yapching, Hanz Coquilla and Rey Villegas; from Davao, Ivan Raborar, Dionisio “Joao” Tarepe and Jun Artajo; and from Manila, Vania Romoff, Roland Alzate, Roxanne Hoey and Renan Pacson. Look’s July-August 2012 issue commissioned local designers to create pieces in the spirit of eco-fashion, advocating green is the new black. Here, they sound off on the socially conscious new thrust. According to Rhett Eala, “It’s important to leave something behind for the next generation of Filipinos. As designers, they should set the practice of recycling; reuse a lot of raw materials like fabric and trims. A small part, but a contribution nonetheless, to saving the country’s natural resources.”
Concerning the study, these documents may serve as a suggestion to the proponents to enhance their methods or techniques in using unique materials such as Star Apple leaves as one of their main component in making costumes. With the recent news about the achievements made by creative abilities of the Filipinos, it gives the researchers a concrete evidence that just by combining of scrap materials and creative minds of the Filipinos through their experiences in engaging in various contests, the researchers could evaluate the credibility and global competitiveness of hiring Filipino workers, which would be considered not only a tremendous asset to the proposed business but also hope to develop new ways of selecting appropriate materials for creating an eco-friendly costumes and be able to materialize the concept of confirming the viability and credibility of this business venture and become the top provider of the Philippines in providing rental service of eco-friendly costumes. In a long-term basis the proponents could also refer to the Aboitiz Group’s five sustainability pillars, which are: 1.) Re-use, 2.) Rejuvenate nature, 3.) Reduce consumption, 4.) Rechange communities and 5.) Use of renewable energy. With the use of these criteria, the proponents could create a livelihood and contribute to the quality of the community. It stands as a motivation to the researchers to pursue their decision in establishing a rental and marketing of quality eco-friendly costumes.
Foreign Studies Stone (2009) research entitled “Creating An Environmentally Sustainable Costume Shop”, discusses that fabric is the most important elements in a costume shop; it can be one of the most environmentally unfriendly elements. However, with the cooperation from the costume shop employees and costume designers, the ability of reducing the negative impacts on the environment will dramatically be increased. It also said that the first step in constructing a costume is determining if construction of the costume is necessary or if the costumes already exist. Costume storage containing costumes from previous performances at many theaters and costume rentals are available from theater shops and costume shops. Many of these costumes can be rented and slightly altered while still maintaining the same design aesthetic of the original idea of the costume designer. A factor to keep in mind with rentals is that although slight alterations are possible, in accordance with most rental agreements, rented costumes cannot be permanently altered and must be restored to original condition upon return. Although some of these costumes could possibly have been made with non-environmentally sustainable elements, the costume is already made, therefore counteracting the need to use new fabric, even if it is environmentally sustainable, for a new costume.” Kee’s (2005) study entitled “Opportunities aplenty in Costume Rental Business”, gives a summary of the discussion. It says that costumes can also be rented from the Cultural Center of the Philippines (CCP). The only other individual in this line of business is designer Eric Pineda. While in college at the University of the Philippines, the writer took up Theatrical Arts, with the intention of majoring in Costume Design because of the admiration and fondness in costumes. Bearing in mind the times of poring over books and wondering what the people living in another country wore. With this motivational drive, the writer even cross-enrolled to be able take up a course in dressmaking. With all the necessary knowledge about venturing into a costume rental business the later hired a costume custodian who is now in charge of keeping tabs on our inventory, what needs to be repaired and what costumes need to be cleaned. Even before Mr. Lito Perez suggested with the ever growing demands of costumes in the market series of calls were received to open up a costume rental business. Since, there really was a need for it,” Mr. Pineda said.” People would usually spend P3, 500 for a custom-made child's costume although that amount can go even higher. The costumes they spend on however are usually for the UN day celebration. If their child wins an award at school because of his or her costume, it's a real honor for them. Andreae’s (2009) thesis entitled “Performing Trade Shows: The Case of the Taipei International Show,” discusses that the “Business and attendees organize a trade shows because with this approach has been to consider resource advantages and abstract pricing competition when describing business decision-making. As a space of trade, shows facilitate the need of business and government, especially as supply chains become longer and increasingly complicated. Service Businesses especially need to communicate with each other, and customers need to know what to buy. By creating a controlled space the information that needs to flow to allow all of this to happen can be enacted out in a series of performance.”
Bearing on the study, these research studies were concerted with creating a sustainable costume shop with the purpose of giving light to the question on the suitability and profitability of providing this type of service to customers, who have dedicated in appreciating the creativity of making a diverse forms of costumes, wherein they could actually rent them instead of forcibly buying them that will limit the customer’s capacity to acquire and admire more on the unique design of the costumes which could provide the researchers the idea on venturing into a business wherein they offer not only the quality of the product but also the rental form of service in which proves on this statement in the previous study that “there were calls and requests to open up a costume rental business because there really was a need for it.” Moving on, these studies also leaves an invaluable repercussion that provides a specialize form of marketing concept by the utilization of trade shows as the proponents’ major form of marketing communication tool in dealing with the competition in both local and foreign businesses, with finally enable them to gather more information about their competitors and increase the demands since with the use of intensive and extensive marketing tools such as having an advertisement on television will surely be very expensive.

Local Studies Fajardo’s (2010) research entitled, “The Aesthetics of Poverty: A Rationale in Designing for Philippine People’s Theater”, identifies the production design approaches and techniques used in plays by the Philippine Educational Theater Association (PETA), using the principle of “Aesthetic of Poverty” which implies that there is a sense of beauty which belongs to people who live in a condition of material deprivation. There are concepts of color, line, space, texture, rhythm, and movement that are conditioned by particular natural, cultural and social environments. Colors and textures of found objects have symbolic representations in the costumes and props and the like were carefully chosen for its meaning. The approach not only expressed the truth, it also provides authentic aesthetic experience not only for its viewers but also creating artists. It was possible to capture the patina of time and become more sensitive to the aesthetic qualities of local materials thereby increasing the powers of expression. Roces’ (2004) research, entitled “Women, Citizenship and the Politics of Dress in Twentieth-Century Philippines”, concerns upon the politics of dress as expressed in terms of a Filipino dress/Western dress binary had gendered implications. Women as 'bearers of tradition' wore national dress while men wore the western suit and jacket, reflecting the gendered power relationship in the society. Because of the stark visual contrast between these two types of dress, these visual markers became politically potent. Women in the Philippines, from suffragists to powerful women, have used clothing and gender stereotypes associated with particular forms of dress as part of political strategy and empowerment. The study of the politics of dress has not yet been given much attention in the production of knowledge on politics in the Philippines. Instead, dress studies have focused on the history of Philippine costume, the ethnography of dress, or the history of clothing materials. This article is a step towards a history of appearances in twentieth-century Philippines, focusing on the politics of dress and its gendered implications. It explores how women have capitalized on the semiotics of dress as part of political strategy and empowerment. When national dress was 'invented' in Asia, women were represented as 'bearers of tradition' associated with the emerging nations' past.
Concerning the study, these researches bring out the inevitable truth of the current status of the Philippines with regards to their theatrical’s representation that points out that most Filipinos despite the fact that they are imprisoned by poverty still stand out to see the beauty and learn to appreciate things in poor condition just like appreciating the art from trashes and waste. Because of this awareness, the researchers would surely gain the proper understanding on how these poorly conditioned materials would captivate the authenticity and aesthetic experiences not only to the viewers but also creating artists. Thus, become more understanding and aware on why people should patronize their own local product and materials to be our overall component of expressing our love for our country. In addition, these studies imply the researchers the concern on the way of scrutinizing the gender implications before making such costumes, which could lead to their demographic threat that could dramatically affect the business’s profitability therefore, the researchers must be aware and vigilant in selecting on how they should made their costumes in accordance with gender because it is a step towards a history of appearances in twentieth-century Philippines that focuses on the politics of dress and explores how women have capitalized on the semiotics of dress as part of political strategy and empowerment. Since national dress was 'invented' in Asia, women were represented as 'bearers of tradition' associated with the emerging nations' past.
Research Methodology The proponents used the descriptive method for the business; it would be the most suitable choice for the proposed business. This method was chosen for its appropriateness of sampling procedure and higher opportunity to gain insights from the respondents. This method involves gathering data that analyzes then organizes, tabulates depicts, and describe the data to assess the needs and to interpret the respondents potential and current behavior about the proponent’s business. Which would determine the standards of the business; approach of the proponents and in helping the proponents adjust to the existing market.
Instruments and Techniques Used The proponents decided that the most effective way to gather information that will help them in their study is through the use of primary data in the form of questionnaires and interviews. To assure concrete results from the respondents, the researchers will gather information in the form of close-ended questionnaire. This structured questionnaire requires checking of box provided for the given choices. Also, the proponents conducted some interviews with the rental costume stores and costumes enthusiasts so that they will be able to gather pertinent comments and suggestions to improve the production of the proposed product and service rendered.
Sampling Procedure The researchers used the simple random sampling technique in determining the respondents of the survey; it would be the most convenient, in terms of time allowance and ease of finding respondents, while being the most efficient way to know the communities’ demands and suggestions entirely without limiting the selection of respondents. The Sloven’s formula was used to draw the sample population from the entire population of San Juan City, Metro Manila. The total population of San Juan is 121,430. With this information gathered from the National Statistics Office (NSO), the researchers were able to determine the need for about 400 respondents to reach the desired sample size.
Sloven’s Formula:

Where: n = representative sample size
N = Total Population e = Margin of error (Assume to be 5%) n = 121,430 / (1+121,430 x 0.0025) n = 398.68 or 400 respondents
Treatment of Data The main statistics that the researchers used is the frequency and percentage distribution methods. The process involves gathering all data from the respondents that were recorded and tabulated. The frequency and percentage distribution methods were used to present the results. Results were determined by dividing the number of responses to the number of respondents and multiplied by 100.

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