A feasibility study on children's pajamas

Date of Publication

1995

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Commerce Major in Business Management

College

Ramon V. Del Rosario College of Business

Department/Unit

Business Management

Abstract/Summary

For three decades now, the scenario in the garments industry is very favorable. It has been a major foreign exchange earner for many years now. In the local scene, there is a mushrooming of kids' boutiques around the metropolis. Hence, the proponents became interested to enter the children's garments sector, particularly children's pajamas. This study is being undertaken to determine the feasibility of manufacturing and marketing children's pajamas.

The objective of the study is to determine the marketability, technical process, management and legal considerations, the financial constraints and the socio-economic benefits derived from going into the manufacture of children's pajamas. A sample of the target market of married women, aged 20 to 49, belonging to class A or B residing in Manila or in Quezon City were studied. A survey conducted revealed that there is a sizable market for the proponents. A 17.52% market share was arrived at through computations using results from the survey and from a time and motion study undertaken by the proponents.

The raw materials for the pajamas are Gentex-cotton cloth, translucent buttons, satin bias tape and label. There will be three different sizes of pajamas to be offered-small, medium and large. The most appropriate manufacturing process to be adopted is the assembly-line method. The minimum production capacity of the proponents is 16 units of pajamas a week. Their break-even sales volume is 219 units. The average production cost including the fixed cost per unit totaled to P 131.90 and the selling price would be P 175.00.

The form of ownership of the proponents would be a corporation. Their corporate name is Chiquillo Corporation which will have a capital of P 13,500. The general administrative program will serve as the guide on how the business will be conducted. The project timetable will ensure that specific tasks or activities are accomplish strictly within certain time limits to facilitate efficiency in the operation of the business.

The projected return on investment of Chiquillo Corporation is 75.41% and the net profit margin is 29.62%.

From the operation of Chiquillo Corporation, both shareholders and stakeholders. Stakeholders such as suppliers, customers and society will benefit through the taxes paid by the corporation, utilization of local raw materials and the manufacturing of good quality pajamas.

It is, therefore, feasible to produce and sell children's pajamas to the target market because it is profitable. The existence of a demand for the product and market share for the proponents further strengthens this conclusion.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU09356

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

212 leaves

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