III.

MARKETING PLAN

A.TARGET MARKET

`The major target market of the company is those people engage in a type
business which preserving foods are considered, particularly owners of a
large hotel or restaurant. Also any possible individual buyers in the country.

B.PRODUCT

To make money, good quality of the product must be the major

concerned. Our product is very suitable to their needs. Our very own, very
convenient and impressive equipment THAWING MACHINE. This machine helps to
thaw certain frozen meat to a short period of time without decreasing its quality. Air

blast thawing involves surrounding frozen product with warm moving air. Frozen
meat is thawed rapidly in moving air. The machine comprises fans to circulate
warm, moist air around a large chamber in which the meat is placed. A water
spray system is used to humidify the air. The unit is fully programmable to
enable the thawing time to be controlled. The units are often modular enabling
them to be extended when additional capacity is required.

SPECIFICATION

Thawing machine dimensions 2m1m1.5m(LWH)

Overall weight is 100kg

Pricing
Real steel company fabricate the design to the particular
fabrication company. The company decided to increase the
retail price to 100% of the total cost per unit.
# of Unit: 1
Total production cost:
Total number of unit :
Production cost per unit
Mark-up:
Retail price

Php15,000,000
1500
10,000
100%
Php 10,000
+10,000
Php20,000

IV. Operational plan

A. Sales target
The proposed product can be sold at any time. Every 3
months of the operation of the business the proponents will make
1500 units .

B. Production schedule
The delivery from the fabrication company to the real steel
company is done every 3 months.

C. Production process
The entire body of our machine was fully fabricated by a
particular fabricator company. After fabrication process, delivery to our
establishment is to be done. Fabricated parts are going to be assemble by
technology department. Testing the assembled machine will be done by
engineering department.

VI) FINANCIAL PLAN

A. BUDGET ASSUMPTIONS
1) The product will have a retail price of P20,000 each.
2) 1500 number of units will be produced every 3 month.
3) Lot and building budget is assumed P 70 million.
4) Furniture and fixtures budget is P 300,000.
5) Office equipment budget is P 300,000.
6) Current bill and water bill monthly is assumed P 100,000.
7) Technology and Engineering equipment is assumed in total to be P
40,000.
8) Delivery equipment is 20 million
10) For the monthly wages of employee

POSITION
Gen.Manager
Auditor
Engineers
Marketing
Officers
Technology
Officers
Utility workers
TOTAL

No. OF
WORKERS
1
1
3
3

WAGES
(monthly)
P 40,000
P 20,000
P 105,000
P 30,000

P 30,000

P 16,000
P 241,000

11) Estimated other expenses is 10,000

B. FINANCE
There are 11 members in the business.

They will be called

industrialist-capitalist for they will be sharing the profits and losses of

the business operation equally. Each partner of the group will
contribute P 10 million each for the initial capital of the business.
C. TOTAL PROJECTED COST
The estimated projected cost is P 67,345,000. Show below is the
estimated cost for each category.

Fixed Asset:
Production equipment
Factory construction

20,000,000
50,000,000

Furniture and fixtures expenses

300,000

Delivery equipment expenses

20,000,000

Working Capital:
Transportation Expenses

10,000

Current and water bill (monthly)

100,000

Fabrication
15,000,000

expenses

Office Supplies Expense

Other expenses

100,000
10,000

TOTAL COST
105,520,000

D. Business income return

In three years operation of the business the income return is:
* Monthly operation
Machine produced
Retail price

500
P 20,000

P 10,000,000

* Sales will increase 2% per month

Monthly operation
x

P 10,000,000
.02
P 200,000

* monthly machine defects produce is 0.2%

Monthly operation

P 10,000,000
0.002
P 20,000

In three years operation

Monthly operation P 10,000,000

200,000
No. of months in one year
(12-1)

Monthly operation increase

12

P120,000,000

P2,200,000

P 122,200,000

Yearly operation
Multiplied by 3

P 122,200,000
x

In three years operation

3
P 366,600,000

* Losses in three years operation

Monthly cost defect

P 20,000

No. of months in one year

12

P 240,000
x
Cost defect in three years

Monthly wages of employee

No. of months in one year

P 720,000

P 241,000
x

12

P 2,892,000
x
Employees wages in three years
8,676,000

3
P

Monthly water and current bills

P 100,000

No. of months in one year

12

P 1,200,000
x

Water and current bills in three year

P 3,600,000

The loss in three years operation is:

Cost defect in three years

P 720,000

Employees wages in three years

P 8,676,000

Water and current bills in three years

P 3,600,000

TOTAL LOSS

P 12,996,000

In three years operation

Total loss in three years

P 366,600,000
- 12,996,000
P 353,604,000

The net income within three year is P 353,604,000

The total income within three years

353,604,000
Divided by the no. of members

P
/

11
P 32,145,818.18
In three years operation, every member of the business will
receive

P 32,145,818.18

E. CONCLUSION
In this partnership, with a product of thawing machine, is now a
feasible business for there is a demand of the product in the industry.
Eleven partners will compose the business who will contribute P 10 million
each for a total of P 110 million. The money will then be used to cover the
projected cost of the business with the amount of P 105,520,000. This will
lead to a net income of P353, 604,000 within three years and the every
year the net income is P 117,868,000. The initial investment of every
members of the business will be recovered after one year.