Comfort Unlimited Corporation

Date of Publication

1999

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

The proponents decided to name the company as COMFORT UNLIMITED CORPORATION not only because the name sounds good but most importantly, it denotes the features and characteristics of the products that the company is manufacturing and selling.

The plant site is located at #2 Xavier St. Corner Connecticut, Greenhills West, San Juan, Metro Manila. This was chosen because more than half of the proponents live near it. It is also convenient because Unimart and Greenhills Shopping Center are a few minutes away thus they could easily avail of the materials at the mentioned stores in case they run out of materials. Moreover, public transportation is available for the proponents. It will also allow the proponents to minimize delivery expenses since one of the target markets is in the Greenhills area. The plant site provides enough space for production process of the beanbag, thus allowing the proponents to work comfortably and efficiently.

Figures show that there's a demand for the beanbag and since there are only few producers in the country, the proponents thought they could offer a better product. This product would give the consumers the qualities they are looking for in a beanbag comfortable, functional, durable and suitable for rugged environment. The proponents believed that this product would have an edge in the market because of its uniqueness. The availability of the raw materials, skills, and technology is also one of the reasons why the product was chosen.

Jelly Beanbag is an extraordinary kind of beanbag, which is made of carefully selected quality materials. Its upholstery is made of high quality vinyl plastic. The styroballs are spray-painted with quality latex paint, which does not war off and stain. Jelly Beanbag comes in different colors applicable to all ages both male and female. The customers can choose color combinations for the styroballs themselves.

The primary target markets of the proponents are teenagers (male and female) with age bracket from 13-19 and adults from the early twenties whose age range from 20-24. Specifically, the primary target market will be the students, businessmen/women, housewives, and other professionals who live in Ayala Alabang Village (25.88% of the population), Corinthian Gardens (18.86%), Tahanan Village (30.19%), Araneta Village (6.47%), Greenhills Village (11.86%) and Escolta Twin Towers (6.73%). The secondary market of the proponents will be the De La Salle community, which compose of the students, faculty, and employees since the proponents would be having bazaars during school days. Moreover, customers of other furniture stores that would serve the proponents' distributor would also constitute the secondary market. Specifically, secondary market will be the housewives, businessmen/women and professionals whose age range from 25 and above.

The gross market acceptability rate is 0.87. By multiplying the GMAR by the number of population of interest, an approximated 9,302 potential buyers was derived. There's an annual potential demand of 9,302 beanbags. The monthly demand for the product is 776 units. There's a market share of 6.2% of the total market.

The proponents made use of the concept of product differentiation. The customers can freely choose their preferred colors and combinations, thus allowing the product to be personalized and easy to be matched with.

The proponents priced the product using the cost-based pricing, wherein a mark-up of 33.6% of variable cost is added to the production cost. The proponents also based the price on the demand of the customers and on the product's perceived value. Buyer-based pricing is also applied by setting the price close to perceived value.

For placement, direct selling type of distribution and personal selling of the product will be utilized. Distribution in store by consignment is also considered as an opportunity to increase the level of sales as well.

Promotion of the product will be maximized through leaflets or fliers. These will be distributed in different schools, malls, villages, and places where the target market can be accessed. The most effective promotional tool would be the word-of-mouth and this could be accomplished through personal selling. Nothing can ever beat a satisfied customer with personal selling as a promotional tool. The proponents will also use free advertisements of the product in newspapers and magazines such as Buy and Sell, etc.

Based on the time and motion study conducted, a maximum capacity of 12 units can be produced in a production day. This will also be the desired output (12 units per production day) to lower the total production cost specifically the factory overhead supplies cost, direct labor cost and the indirect labor cost. A total of 36 production days must be fulfilled in a span of 9 months. Thus, the proponents can produce a total of 432 units for the whole term of existence.

Monthly production cost is P 39,000 based on the Financial study. Elements considered in the production cost are working capital outlay, fixed capital outlay, direct materials, direct labor, indirect materials, indirect labor, factory overhead, and operating expenses.

Monthly production cost is P 39,000 based on the Financial study. Elements considered in the production cost are working capital outlay, fixed capital outlay, direct materials, direct labor, indirect materials, indirect labor, factory overhead, and operating expenses.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU10168

Shelf Location

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

Physical Description

114 numb. leaves

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