A business research paper on door knob accent

• Main Authors: Gan, Olivia, Grospe, Jennifer, Haw, Charyl Ann, Henson, Paul, Kho, Arthur, Lee, Carolyn, Ngo, Neil Christopher T., Palma, Maribelle Jo, Tan, Kathrine Christy G., Vicencio, Katherine Grace
• Format: text
• Language: English
• Published: Animo Repository 1998
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/11987
• Institution: De La Salle University

Executive Summary. Cheers, Inc. was chosen by the proponents as the corporate name. It lives up to its name of bringing cheer and good tidings to its customers. Through its product called Cheery Knobs, a decorative door knob accent, it aims to provide homes with an amiable atmosphere. The corporation will hold office at the 5th Floor of Tricom Building, No. 65 Sen. Gil Puyat Ave., Makati. The plant site was chosen because of its accessibility to the proponents and its proximity to the suppliers of raw materials. The product, Cheery Knobs, was chosen because the proponents foresee a potential market. The existence of many home decor stores signify the viability and profitability of products related to enhancing the modern home. Furthermore, there is the availability of inexpensive raw materials for scented door knob accents. This translates to an affordably-priced products which would be of advantage to the customers and yet, would still leave room for considerable profit for the proponents. The proponents also see the ease in the design and creation of appealing and attractive products due to the wide variety of choices in terms of design, color, and texture of raw materials. Cheery Knobs is an attractive and charming home decor item that accentuates door knobs of every room in the house. Cheery Knobs will definitely benefit its homemakers and modern individuals with the opportunity to appreciate and beautify their homes. It freshens a room with the enticing fragrance of essential oils while deodorizing the room of undesirable smells. It is available in various pastel colors. It is a highly competitive product in terms of features, quality, and price. Given its attractiveness, features, and craftsmanship, Cheery Knob is affordably priced at Php 90.00. Recycled brown paper bag will be used as its packaging since it's a manifestation of the corporation's environment-friendly philosophy and desire for simplicity and elegance. Based on the survey conducted, the primary market of Cheery Knobs are females, married, ages 31-40, and with an income of Php10,000-20,000. This can be explained by the fact that female market is more attuned to products such as Cheery Knobs, which are designed to enhance and beautify the homes. The secondary market are female students from various universities and colleges, such as De La Salle University, Ateneo de Manila University, St. Scholastica's College, University of Santo Tomas, and University of the Philippines-Diliman. The market acceptability rate of Cheery Knobs is 72.83%. This translates to the presence of a significant market for Cheery Knobs. The derived monthly demand is approximately 193 units. With this, Cheery Knobs holds a market share of 51.86% in accordance with the corporation's production capacity of about 100 units per month. The marketing strategies employed by the company are based on the demand of the market gathered from the result of the survey. The edge of Cheery Knobs over its competitors is the variety in colors, shades and fragrance, presence of additional decorative embellishments such as chimes, and an environment-friendly recycled paper bag for its packaging. Cost-plus pricing will be employed with a standard mark-up of 28.57%. This pricing strategy is believed to be fair to both buyers and sellers. Cheery Knobs will be distributed widely through personal selling. Another option is to distribute them through stall lessors or tiangge exhibitors on a consignment basis. It could also be distributed at department stores and gift shops. Cheery Knobs will be promoted using flyers since flyers are less expensive compared to other promotional tools. Word-of-mouth influence and personal selling will also be employed to ensure adequate promotional strategies. Cheers, Inc. has a plant capacity of 25 units per production day which gives a total of 100 units for the first two months of the production period. This projected output is expected to increase to 104 units starting December until June. Cheery Knob's product cost per unit is P 62.71. To cover all operating costs, a breakeven point of 171 units must be reached. The form of ownership assumed by the company is the corporation. A corporate form of ownership is seen as advantageous to the business due to a lot of factors. A corporation has a greater capacity of pooling greater resources, funds, and capitalization. The limited liability of majority of the stockholders is an assurance that their responsibilities shall not exceed their proportionate share of investment. Another benefit is the corporation's unlimited life which is an assurance to the perpetuity of the business. The ease of liquidation or transfer of investment is also advantageous to the proponents. Cheers, Inc.'s term and existence will be for ten months. However, its production operation will last for nine months starting on October 1998 and ending on June 1999. Cheers, Inc.'s whole operation will start on October 1998 and end on July 1999. With a sale of Php 83,520, Cheers, Inc. has a projected net income after tax of Php 11,966.26. The return on investment of Cheers, Inc. is 50.22%. It measures the over-all effectiveness of management in generating profits with its available assets. The projected total project cost of Cheers, Inc. is Php 11,500 divided equally among the incorporators. The authorized capital stock is 18,400 shares, the subscribed capital stock is 4600 shares and the paid-in capital is 1,150 shares. The establishment of Cheers, Inc. will contribute a lot of societal benefits. First and foremost, it will help in employment generations, giving workers not only financial compensation run. Greater profit is expected by investing the initial capital of Php 11,500 in the business than in low-risk and equally low return areas such as time deposit.