CHAPTER 1

INTRODUCTION

Clothing is an essential need for people and is also one of the fastest paced products to
sell not only in the Philippines but in the whole world. Trends in the clothing industry is
one of the reasons why consumers tend to dispose their purchases, trend after trend. In
relation to this, fast fashion produces excessive textiles and ephemeral garments that
eventually turns into waste once outranked by trends. Hence, with the aim of reducing
post-consumer textile waste and building stronger homes, we have come up with an
idea of making our product which we call as “FaBrick” to help aid the problem.

1.1 Name of the Project and Location

The name “FaBrick” is a combination of the word “fabric” which represents any cloth
produced by weaving or knitting fibers, and “brick” which is a rectangular block of
hard material used for building walls and houses. As the name imply, FaBrick
produces an environmentally friendly brick made from discarded clothes, as an
alternative to the standard concrete hollow blocks.

The manufacturing site of FaBrick will be located at the roadside of Scaling, Bislig
City, Surigao del Sur, an ideal-perfect location for the type of business we want to
run. The land is owned by one of the partners as inheritance and has an area of 100
square meters which will be rented out at a reasonable cost.
1.2 Description of the Project
 FaBrick is a manufacturing business that aims to produce high quality and affordable
clothing-based bricks that are both economical and durable. Moreover, FaBrick
provides an essential product for housing needs of the people and at the same time
to aid in reducing post-consumer textile waste. The business is a general co-
partnership whose goal is to gain profit. Furthermore, to assess the projects potential
and capability, five areas are taken into consideration, such as market feasibility,
technical feasibility, management feasibility, socio-economic and financial feasibility.

Marketing Aspect

1.The business is part of unsaturated market.

2.The product is new and environmental friendly which is a constant trend.

3.There is an increase users of hardblocks/bricks compared to wood.

4.There is low number of competitors that offers likely similar product.

5.There is an increase of population that results to higher increase of housing supplies

such as hardblocks/bricks.

Technical Aspect

1. Raw materials are easily accessible and are recyclable items

2. Warehouse will also serve as business manufacturing area

3. Manufcturing process of the product will only require minimum workforce.

4. Production will only require Textie shredders and Concrete Hollowblock Makers.

Management Aspect

1.Partners have the capacity to provide financial and other resources for business to
operate.

2.Product manufacturing will be assigned to workers.

3.Business owners are assigned to build business-to-business relationship and promote

the business.

Socio-Economic Aspect

1.The business aims to reduce post consumer textile waste.

2. The business will create a job opportunity providing reasonable compensation rate to
workers.

3.The company will comply to all legal and government requirements and licenses.

Financial Aspect

1.The business starting capital will come from partners contribution.

2.A high return of capital is expected within five years.

3.An increasing and promising projected sales growth for the next five years.

1.3 Project’s Long Range Objectives

 After five years of operation, the business looks forward to:

• assess the market feasibility of FaBrick in local market

• get high return on the capital invested

• extend market reach

• increase productivity; and

• exceed costumers’ expectation and satisfaction

1.4 Scope and Limitations of the Study

The scope will have to be narrowed down to a certain section of the target
population; hence the proposer will focus the study on to business owners within
Bislig City. The proposer will conduct the study by providing a survey questionnaire.
The study will mainly Identify as to which is more durable between the ordinary
bricks and the newly proposed clothing-based bricks. This study will be conducted
with a limited amount of financial resources and time framework.
 CHAPTER II

MARKET FEASIBILITY

2.1 About Bislig City

The location of the business is situated in the City of Bislig, a 3rd class
component city in the province of Surigao del Sur, also known as “The Booming City by
the Bay”. It has a total land of 331.80 square kilometers which composed of 24
barangays and has a population of 99,290 people.

Bislig was also the home of the defunct company PICOP Resources, Inc. (PRI,
or previously known as the Paper Industries Corporation of the Philippines), which was
the largest paper mill in Asia and one of the largest in the world, geographically situated
at Barangay Tabon.

Long before it became a town, Bislig was already an established political

instrumentality or "pueblo" in the Province of Surigao. Earlier, the province was a part of
an even bigger territory stretching from Northeastern Mindanao down to the island's
Southeastern "pueblo" of Caraga and Man-ay in Davao Oriental. Caraga was originally
the seat of political, military and religious authority.

Since then, efforts were made to improve and develop Bislig until the advent of
Cityhood campaign in 1999 and by virtue of Republic Act No. 8804 Bislig was converted
into a component city duly ratified and approved in a plebiscite conducted in September
18, 2000.

2.2 Industry Background

To build marketing strategies for the firm it is important to consider the PESTEL
Analysis (Political, Economical, Social, Technological, Environmental and Legal) The
Five Forces Model of Porter (Bargaining Power of Supplier, Bargaining Power of
Customers, Threat of a New Entrants, Threats of Substitutes and Rivalry among
existing competitors)

a. PESTEL (Political, Economic, Social, Technology, Environmental and Legal)

Political

There are multiple Political factors that the firm must consider such as,
government regulations, tax policy, labor law, and trade agreements, including tariffs,
import/export restrictions, trade barriers and so on. The stability of a political system can
affect the appeal of a particular local market. Government’s view business organizations
as a critical vehicle for social reform. Since Political leaders frequently make choices
that have an impact on taxation, transportation, education, and labor legislation, to
maintain the company's wellbeing we need to abide by the rules and regulations that the
leaders or government personnel have established.

Economic

The ability of firms to turn a profit and improve efficiency is often influenced by a
variety of economic issues, including unemployment, exchange rates, supply and
demand inflation, and wages. Businesses that research these variables typically have
better success forecasting consumer spending and organizing their marketing
initiatives.

Social

Businesses are rapidly growing now adays there are many competitors that every
business needs to compete with. Traditions, values, social trends, level of education,
and the standard of living are some of the things that businesses must take into account
in order to last long in the industry. Businesses that fail to adapt to these social
preferences related to their goods and services will fail. Hence, our business is doing its
best to fit people's trends. We are carefully shaping our business decisions and
strategies to attract more opportunities and buyer in the future.
Technological

Technology helps increase the efficiency of systems, products and

services. Since many businesses now use highly developed processes as a result of
technology, technology's importance to organizations will increase as it develops further.
Moreover, with the help of technology we find new ways of communicating with our
target markets and develop competitive advantages in the economies marketplace.

Environmental

Currently, developing eco-friendly product is a best way to show care in our

environment. Due to expanding industry and rampant growth of population textile waste
also increase in rate. Seeing that, it threatens our health, our economy, and our
environment creating FaBricks is a small step to aid the problem the fact that our
product is eco-friendly due to the materials use which is fabric and cement, not only we
provide high quality product but at the same time we also help reduce post-consumer
textile waste and provide our customers stronger homes in the future.

Legal

The choice of our company's legal status or structure is one of many crucial
choices we must make when launching a business. How we manage our firm will
depend on the legal structure we choose. Some of the legal factors that our business
must take into consideration are consumer law, antitrust law, employment law,
discrimination law, costumer protection, data protection, health, and safety legislation.
Having apprehension with these laws can help our business avoid potential lawsuits
and set up a better and strong foundation in the upcoming years.

b.) Porter’s Five Forces

Threat of New Entrants – Moderate

In a manufacturing industry, there are several factors that discourage new entrants
from entering. FaBricks requires bigger start-up cost and every part of it requires a large
investment, from establishing down to maintaining its operation. Customer loyalty takes
time to build. However, due to the fact that it is an eco-friendly business, there is a
moderate threat which would be easy for new entrants to follow. FaBricks has to build
effective barriers to safeguard its competitive edge.

Threat of Substitutes – Moderate

While both bargaining power of supplier and customer are low, threat of substitute
may be of moderate level since people are accustomed to the standard concrete blocks.
However, we strongly believe that some consumers might also engage to uniquely
different products like FaBricks.

Bargaining Power of Suppliers- Low

This factor of Porter’s analysis model addresses how easily suppliers can drive
up the cost of inputs. In this type of industry, the bargaining power of suppliers is low
because materials needed can be bought from numerous suppliers. FaBricks can easily
switch from one supplier to another with ease because of these suppliers’ similarities.
The higher the supply, the lower the prices will be, thereby weakening their bargaining
power in the context of the Five Forces analysis.

Bargaining Power of Customers- Low

This force is based on the influence of customers to drive prices lower on their level
of power. In our business, Bargaining Power of Customer is low considering that we
offer lower prices with higher discounts especially to those who buys in bulk. Besides,
buyers often seek better deals, wanting to buy products by paying the minimum price as
possible. Due to this, FaBricks need to keep the price method according to customer
demand, with the least possible increase in cost. By maintaining this, it gives FaBricks
extra advantage to build customer loyalty and meet sales objectives.

Rivalry Among Existing Competitors- High

There is a high level of rivalry among competitors of FaBricks. So, it is critical for the
business to come up with solutions and innovative offerings as customers mainly affect
the overall profitability.
2.3 Market Segmentation, Targeting and Positioning

STP Marketing is three-step formula that will help our group to section our target
market accordingly into smaller groups which will make it easier for us to know better
our target groups and be able to develop and adapt specific strategies to offer them the
right quality products.

2.3.1. Market Segmentation

The business will segment is market according to the following:

2.3.1.1 Demographic: The target market of our business FaBrick would be

hardblock retailers particularly hardware stores situated in the locality of Bislig City.
These retailers sells hardblocks for people in Bislig City to any genders and age.

2.3.1.2 Geographic: Since we are targeting hardblocks, our respondents are

Hardware stores as well as the Hardblock manufacturers around Bislig City that has 24
baranggays in total.

NAME OF BUSINESS / RESPONDENTS HARDBLOCK HARDBLOCK

RETAILER MANUFACTURER
✔
Victory Hardware
Hipal Hardware and Construction Supplies ✔
Junrik Mercantile/ Bayalas Construction ✔
Supplies
Pernites Tiles and Fitting Supplies ✔
Fidelitas Hardware Parts & Construction ✔
Supply
JM Mosende Construction Supplies ✔
(Camazora Aggregates Scaling Branch)
Plaza Construction Supplies and Services ✔
HC Hollowblocks ✔
 San Fernando Hollowblock Maker ✔
Camazora Aggregates ✔
SH Mercantile and Construction Supply ✔
Gumban Construction Supply ✔
Silton Aggregates ✔
Bardillo Hardblock Supply ✔
Table 1: (List of Research Respondents)

2.3.2. Market Targetting

The business’ market targeting efforts will primarily focus on criterion

Criteria Size: Hardblock suppliers/retailers situated in Bislig City.

2.3.3. Market Positioning

Market Positioning is a marketing strategy that focuses on distinguishing your

brand from its competitors. Our business will focus on two positioning strategy,
Differentation and Quality-based strategy, to help create an image for our business.
FaBrick will position its product as the first eco-friendly hardblocks in Bislig City which is
a unique trait from the traditional hardblocks. Aside from this, it would also be more
durable than the traditional hardblocks which is one of the most important quality when
purchasing these products.

2.4 Demand

A printed structured survey questionnaire were distributed to all hardware stores

and hardblock suppliers around Bislig City. Data were gathered with the presence of the
researchers who also assisted store representatives upon answering the forms.

2.4.1 Sample Size

 Since there are only a number of hardware stores and hardblock suppliers in the
locality of Bislig, we had conducted our on-site research as well as asking the locals for
any hardblock suppliers that we might not know about. In the process, we had come up
with 14 total respondents that includes both hardblock suppliers and manufacturers.

2.4.2 Highlights of Survey Findings

How long does your business have been

operating?

22%

less than 3 years

3-5 years
more than 5 years

14%
64%

2.4.2.1 How long does your business have been operating?

9 or 64% out of 14 respondents have been operating for more than 5 years now. While
2 or 14% of the respondents had their business running for 3-5 years and the rest which
is 3 or 22% just recently started their business not long ago.
 Does your business have more than one loca-
tion in Bislig City

NO
YES

86%

2.4.2.2 Does your business have more than one location in Bislig City?

Only 2 out of 14 respondents have more than one location in Bislig: Camazora
Aggregates situated in Mancarogo Bliss, Bislig City and JM Mosende located at Scaling,
Bislig City.

Do you have a supplier for your major goods

such as hollowblocks/ bricks?

YES
NO

50%
 2.4.2.3 Do you have a supplier for your major goods such as hollowblocks/
bricks?

7 out of 14 respondents (50%) has confirmed that they do not have a supplier of
hollowblocks while 7 out of 14 respondents (50%) said that they do have a hardblock
supplier.

Do you supply goods such as hollowblocks/

bricks to other Hardware store in Bislig City?

YES
NO

50% 50%

2.4.2.4 Do you supply goods such as hollowblocks/bricks to other Hardware

store in Bislig City?

7 out of 14 respondents (50%) has confirmed that they do supply hollowblocks/bricks

around the vicinity of Bislig City while 7 out of 14 respondents (50%) said that they do
not supply it to any hardware stores in Bislig.

2.4.2.5 Which areas have you distributed hollowblocks/bricks?

 Which areas have you distributed hollowblocks?
7% 29%
86% 14%
7%

Bucto (831)
Burboanan (1,790) 7% 71%
Caguyao (866) 14%
Coleto (1,411)
Comawas (3,560)
Kahayag (1,271)
36%
Labisma (2,683) 7%
Lawigan (1,376)
Maharlika (2,998)
Mangagoy (30,541) 29%
Mone (1,842) 29%
Pamanlinan (701)
Pamaypayan (1,613)
Poblacion (10,844)
San Antonio (1,376) 36% 43%
San Fernando (2,920)
San Isidro (Bagnan) (2,163)
San Jose (4,785)
San Roque (Cadanglasan) (6,562)
San Vicente (2,694)
36%
Santa Cruz (951)
Sibaroy (931)
71%
Tabon (13,560)
Tumanan (1,021)

71%

29% 86%

Bislig City is composed of 24 barangays, five(5) barangays namely Pamanlinan,

Pamaypayan, Santa Cruz, Sibaroy and Tumanan were unfortunately not reached with
the supply of hollowblocks in Bislig. 4 out of 24 baranggays: Bucto, Coleto, Kahayag
and San Vicente are only reached with one hollowblock/brick supplier in the vicinity. 2
barangays, Caguyao and San Roque were fortunate to have two supplier of
hollowblocks/bricks in their area. 4 baranggays, Burboanan, Labisma, Mone and San
Isidro(Bagnan) has atleast four hollowblock/bricks supplier that reached their areas.
While there are 3 baranggays, San Antonio, San Fernando and San Jose to have
hollowblock supplies reached their baranggays. Baranggay Lawigan on the other hand
has 6 hollowblock/bricks supplier to reach their area. Three baranggays, Comawas,
Maharlika and Poblacion, that has ten (10) hardblock/bricks supplier to be able to
distribute the product in the said area. And lastly, 2 baranggays, Mangagoy and Tabon,
which is fortunate enough to have twelve(12) options of hollowblock/bricks supplier they
can choose from.

What is/are the main reason/s that a cus-

tomer purchase bricks/hollowblocks in your
store?

New Building/Construction
House/Building Renovations
Walls 64%
Others
120%

71%
14%

2.4.2.6 What is/are the main reason/s that a customer purchase

bricks/hollowblocks in your store?

9 out of 14 respondents said it is for new building/construction while 10 out of 14 said

one of the reason for them to purchase the product is for house/building renovations. 2
out of 14 was for walling purposes and 3 out of 14 said it was for other purposes such
as for cemetry, piggery house and etc,.
 . How often does your store/company earn
income from sale of bricks/ hollowblocks?

Everyday 7%
3-4 weeks
Every week
Others 29%

57%

7%

2.4.2.7 . How often does your store/company earn income from sale of bricks/
hollowblocks?

Out of 14 respondents, 8 have confirmed to earn income from sale of

bricks/hollwoblocks everyday. One of them said they earn from it at least 3-4 times a
week. Four out of 14 had income from sale of bricks/hollowblocks every week and one
out of 14 has no income from bricks/hollowblocks at all.
 How many (estimated) bricks/ hollowblocks
does your store/company sell in every two
weeks?

less than 500 blocks

501-1000 blocks
more than 1000 blocks 29%

57%
14%

2.4.2.8 How many (estimated) bricks/ hollowblocks does your store/company sell
in every two weeks?

57% of the respondents are able to sell less than 500 blocks in two weeks while 29%
are able to sell more than 1000 block every two weeks and lastly 29% of the
respondents are able to sell 501-1000 hollowblocks in the same timeframe.

How many (estimated) bricks/hollowblocks

do a customer purchase in your store/
company?

less than 200 blocks

201-500 blocks
more than 500 blocks 64%

140% 14%
 2.4.2.9 How many (estimated) bricks/hollowblocks do a customer purchase in
your store/company?

64% of the respondents said that atleast less than 200 blocks is purchased by a single
customer while 22% said a single customer purchases atleast 201-500 blocks and lastly
14% of the respondent said that a single customer in their store purchases more than
500 blocks.

How do you promote products in your store/

company?

Social Media Platforms 7%

7%
Printed Ads/Flyers
Others

86%

2.4.2.10 How do you promote products in your store/ company?

Only one respondent uses social media platform to promote their products and same
goes with one store who uses printed ads/ flyers to promote their products. Majority of
the respondents, have used other ways to promote: radio broadcasting, through word of
mouth and of course from customers’ recommendation and referral.
 How much do you sell each bricks /hol-
lowblocks?
14% 14%

Php 15/block
Php 16/ block
7%
Php 17/ block
Php 18/ block
Do Not Sell Blocks
29%

36%

2.4.2.11 How much do you sell each bricks /hollowblocks?

Price for one block of hollowblock ranges from Php 15- Php 18. Unfortunately two of the
respondents do not sell bricks/ hollowblocks. While two of them offers the lowest price,
four respondents offers Php 16 per block, five respondents offer it for Php 17 each and
lastly one out of 14 respondents offer each block for Php 18.

How many hardblocks are you able to

produce in a daily basis?

Do not produce/manufacture
hollowblocks
21%
less than 150 blocks
151-500 blocks
500-1000 blocks 50%

29%
 2.4.2.12 How many hardblocks are you able to produce in a daily basis?

50% of the total respondents do not produce/ manufacture hollowblocks. While 29%
said that their daily production of hollowblocks are less than 150 blocks and the
remaining 21% said that they produces 151-500 blocks on a daily basis.

Are you open to offering a new variety of

bricks/ hollowblocks in your store/com-
pany?

YES
NO

43%
57%

2.4.2.13 Are you open to offering a new variety of bricks/ hollowblocks in your
store/company?

8 out of 14 respondents are open to the idea of offering a new variety of

bricks/hollowblocks in their store however 6 of the respondents are not ready for it.
 Are you open to build a business-to-business
relationship(with a new business)?

YES
29%
NO

71%

2.4.2.14 . Areyou open to build a business-to-business relationship(with a new

business)?

10 out of 14 respondents are open to build a business-to business relationship with a

new business while the remaining 4 are not opening their doors for a future relationship
with another business.

Would you consider us as your hollowblock

supplier and our product in the future?

YES
NO 29%

71%
 2.4.2.15 Would you consider us as your hollowblock supplier and our product in
the future?

71% or 10 out of 14 respondents are considering FaBrick as their hollowblock supplier

in the future while 29% or 4 out of 14 still needs time to think about it.

2.4.3 Overall Interpretation

Based on the survey results, there are still baranggays in Bislig that are not
reached by the supply of hollowblocks which concludes that there is still a market gap
that our business, FaBrick will fill. Not only this, but 71% of our respondents will
consider us as their hollowblock supplier in the future as they are also open to offer a
new variety of bricks/hollowblocks.

2. 5 Supply

According to research, FABRICK has fourteen identified direct competitors. These are
Victory Hardware, Hipal Hardware and Construction Supplies, Junrik Mercantile,
Pernites Tiles and Fitting Supplies, Fidelitas Hardware Parts and Construction Supply,
JM Mosende Construction Supplies (Camazora Aggregates Scaling Branch), Plaza
Construction Supplies and Service, HC Hollowblocks, San Fernando Hollowblock
Maker, Camazora Aggregates, SH Mercantile and construction supply, Gumban
Construction Supply, Silton Aggregates, Bardillo Hardblock Supply. These competitors
are chosen because they're the one who sell a Hollowblock along the locality of Bislig
City.

Table 2.5.1 Data from Competitors

Direct Competitors Address Description

Victory Hardware Mangagoy Bislig City Victory Hardware is a
hardware that sells a
variety of supplies.
Hipal Hardware and Mangagoy Bislig City Hipal Hardware and
Construction Supplies construction supplies is a
hardware that sells a
 variety of supplies.
Junrik Mercantile Mangagoy Bislig City Junrik Mercantile is a
hardware that sells a
variety of supplies.
Pernites Tiles and Fitting Mangagoy Bislig City Pernites Tiles and Fitting
Supplies Supplies is a hardware that
sells a variety of supplies.
Fidelitas Hardware Parts Mangagoy Bislig City Fidelitas Hardware Parts
and Construction Supply and Construction Supply is
a hardware that sells a
variety of supplies.
JM Mosende Scaling JM Mosende Construction
Construction Supplies Supplies is a hardware that
(Camazora Aggregates sells a variety of supllies.
Scaling Branch)
PlazaConstruction Mangagoy Bislig City Plaza Construction
Supplies and services Supplies and Services is a
hardware that sells a
variety of supplies.
HC Hollow blocks Mangagoy Bislig City HC Hollow blocks is a
hardware that sells a
variety of supplies.
San Fernando Hollow San Fernando San Fernando Hollow block
block maker is a maker of hollow block
and selling a hollowblock
only.
Camazora Aggregates Mangagoy Bislig City Camazora Aggregates is a
hardware that sells a
variety of supplies.
SH Mercantile and Mangagoy Bislig City SH Mercantile and
 construction supply construction supply is a
hardware that a variety of
supplies.
Gumban Construction Mangagoy Bislig City Gumban Construction is a
Supply hardware that sells a
variety of supplies.
Silton Aggregates Mangagoy Bislig City Silton Aggregates is a
hardware that sells a
variety of supplies.
Bardillo Hardblock Mangagoy Bislig City Bardillo Hardblock Supply
Supply is selling a hollowblock
only.

Competitive Profile Matrix Analysis

Competitive Profile Matrix (CPM) is a strategic analysis that allows the business to
compare their relative strength and weaknesses to those of their competitors.

There are five critical factors that are used to compare the direct competitor with a
better marketing plan.

Business Name Price Production Distribution Marketing Total

Capcity Channel Strategy
HC Hollowblocks 4 3 1 1 2.25
San Fernando 3 3 1 1 2
Hollowblock
Maker
Camazora 4 3 3 3 3.25
Aggregates
SH Mercantile and
Construction 3 4 2 2 2.75
Supply
 Gumban
Construction 4 3 3 2 3
Supply
Silton Aggregates 4 4 3 2 3.25
Bardillo Hardblock 4 3 3 2 3
Supply
FABRICKS 5 4 4 4 4.25
Camazora Aggregates and Silton Aggregates are the strongest competition in the
market. They have an excellent productiona and distribution channel as they are also
two of the biggest hollowblock manufacturer in Bislig. However, they lack the marketing
strategy that is why they are not able to reach all baranggays in the locality of Bislig.
Fabrick, aims to distribute product to all local retailers and to all that considers us as
future business partners. In addition to this, we will make use of technology to create an
innovative way to promote the business to make it known in the industry.

2. 6 Demand-Supply Analysis

Table 2.6.1 Demand-Supply Analysis

DEMAND

Customers Monthly Purchase to Retailers and Manufacturer

Hardblock Retailer 16,000
Hardblock Manufacturer 15,000
Total Monthly Purchase 31,000
X Percentage of respondents that 71%
consider us as their bricks/hollowblock
supplier
Total Demand (A) 22,010

SUPPLY
 Competitors (Manufacturer) No. of blocks sold per month
HC Hollow blocks 1 000
San Fernando Hollowblock Maker 3 000
Camazora Aggregates 3 000
SH Mercantile and Construction Supply 1 000
Gumban Construction Supply 1 000
Silton Aggregates 3 000
Bardilllo Hardblock Supply 3 000
Total blocks sold in a month (B) 15,000

DEMAND VS SUPPLY
Total Demand (A) 22,010
Less: Total Supply (B) 15,000
Unserved Demand 7,010

A demand and supply analysis of bricks/blocks business in Bislig City is shown in the
table above. On the demand size, the total number of blocks that purchase in a month
which is 31,000 is multiplied by the percentage of our respondent will consider us as
their hollowblock owner, 71%. There are 22,010 bricks/blocks as a result.

This indicates the total demand for hard block manufacturer and retailer.

FABRICK has many Competitors that offer the same service. So, on the supply side,
there are 15,000 bricks/blocks that is currently supplied by the competitors.

Comparing the total demand of 22,010 and the total supply of 15,000 there is an
unserved demand of 7,010.

2.7 Price Study

The price study aims to evaluate and decide on the best pricing plan for goods or
services offered, while taking into account a number of variables. It evaluates the costs
associated with production, raw materials, labor, overheads, distribution, and other
operational expenses. Furthermore, it looks at how scale economies, price elasticity,
and cost-saving opportunities could affect pricing decisions.

The table below shows that competitor’s pricing is almost the same, while FaBrick has
the lowest established price at 13 pesos each. We believe that this is a reasonable price
that would allow future industry to remain profitable with the existence of competitor.

Table 2. Comparative Price

Price each
Fabrick Manufacturer 13
Victory Hardware Retailer N/A
Hipal Hardware and N/A
Construction Supplies
Junrik Mercantile Retailer Pick up 16
Delivery 17
Pernites Tiles and Fitting Retailer 17
Supplies
Fidelitas Hardware Parts Retailer 17
and Construction Supply
JM Mosende Retailer 17
Construction Supplies
(Camazora
AggregatesScaling
Branch)
Plaza Construction Retailer 17
Supplies and services
HC Hollow blocks Manufacturer 16
 San Fernando Manufacturer 17
Hollowblock Maker
Camazora Aggregates Manufacturer 16
SH Mercantile and Manufacturer 18
Construction Supply

Gumban Construction Manufacturer 15

Supply
Silton Aggregates Manufacturer 16
Bardilllo Hardblock Manufacturer 15
Supply

2.8 Projected Sales

Projected sales are based on the estimated monthly customer’s purchase. As to the
survey findings, half of the respondents confirmed to earn income daily for less than 200
blocks from a single customer. The business will assume the same estimation.

Table 2.6 Monthly and Yearly Projected Sales Year 1

No. of customers in a month 130

x No. of purchase per customer 100
Total Purchase 13,000
x Rate per brick 13
Monthly Income 169,000
x No. of Months 12
Yearly 2,028,000

Table 2.7 Monthly and Yearly Projected Sales for Year 2

No. of customers in a month 208

x No. of purchase per customer 100
Total Purchase 20,800
x Rate per brick 13
Monthly Income 270,400
x No. of Months 12
Yearly 3,244,800

Table 2.8 Monthly and Yearly Projected Sales for Year 3

No. of customers in a month 260

x No. of purchase per customer 100
Total Purchase 26,000
x Rate per brick 13
Monthly Income 338,000
x No. of Months 12
Yearly 4,056,000

Table 2.9 Monthly and Yearly Projected Sales for Year 4

No. of customers in a month 312

x No. of purchase per customer 150
Total Purchase 46,800
x Rate per brick 13
Monthly Income 608,000

x No. of Months 12
Yearly 7,300,800

Table 2.10 Monthly and Yearly Projected Sales for Year 5

 No. of customers in a month 390
x No. of purchase per customer 200
Total Purchase 78,000
x Rate per brick 13
Monthly Income 1,014,000
x No. of Months 12
Yearly 12,168,000

2.9 Market Share

Table 2.9.1 Market Share

MARKET SHARE
Market Volume 2, 564
/ Unserved Demand 7,010
Market Share 37%

To determine the market share, the market volume was 2,564 and was divided by the
unserved demand from table 2. resulting for 37% percent. The proponents of this study
can only initially cater 37% of the demand supply gap of the first year and will increase
initially by 3% afterwards. This indicates that the business can still compete with its
competitor within the locality of Bislig. In addition, this will be the basis for the business
future expansion.
 GAP

37%
Catered
Uncatered

63%

Figure 2. Unmet Demand

2.10 Marketing Plan
Marketing Mix
A. Service
FaBrick is a manufacturing company that offers affordable, eco-friendly and durable
bricks for housing needs of people. We also provide quality services to our customers
and actively listen to their comments to consistently exceed their expectations.

B. Price
Effective pricing is crucial because it establishes the value that makes a product
worthwhile for you to produce and for customers to use. FaBrick manufacturing offers
affordable prices of Bricks that are worth buying for. We also give discounts and cater
free delivery services for customers who buy in bulk.

C. Promotions
Social media marketing and flyers will be used to promote the business.
 Social media- FaBrick will open different platforms of social media accounts
like creating a page in fb in which our customers can easily contact us. Thus,
the page will also be used in posting images of our product along with our
customer reviews.
  Flyers - the company will also develop flyers to be distributed to the public for
better engagement of our product with our customers in a short amount of
time.

D. Place
The manufacturing site of FaBrick will be located at the roadside of Scaling, Bislig City,
Surigao del Sur, an ideal-perfect location for the type of business we want to run. The
land is owned by one of the partners as inheritance and has an area of 100 square
meters which will be rented out at a reasonable cost.

Marketing Program/Strategy
Nowadays bricks/hollow blocks are necessary to people since it is used in construction
of buildings and houses, and since our business is new and unique for the reason that it
is not the same with the ordinary blocks that were sold in the market it is an opportunity
for us and an advantage to introduce our product to the public. In gaining customers
and encourage them to buy our product we need an effective marketing strategy to be
imposed. In order for our product to be known we need an exposure to the public simply
by the use of different social media platforms for an easy access to our customers.
Another option to promote our business is by the use of flyers which is also a good
marketing tool because they are an effective way to reach a large number of people in a
short amount of time.
Consequently, in the upcoming years we will make sure that our business will grow and
will continue to compete with different competitors in the market industry.
 CHAPTER III
TECHNICAL FEASIBILITY

3.1 The Service

FaBrick only provides one service, which is to supply bricks/hardblock to several

hardware stores in the Bislig area. Our company guarantees to supply individuals with
economical, long-lasting bricks for their home needs. In delivering our product, we
ensure that each brick transmitted arrived safely and well formed to its destination, in
case of damages FaBrick will be ready to refund the number of Bricks that are damage
upon delivery. FaBrick also offers discounts to consumers in which they will be given a
two-peso discount for every brick when they purchase a minimum of 100 bricks. FaBrick
will also cater free delivery service for customers around 5km radius from the
distribution site which rivals typically do not offer.

Furthermore, since we are business to business relationships, we will be

customizing the price of our bricks in which they will gain profit from it because beside of
just earning profit, our client’s best interest will always come first.
3.2 Manufacturing and Distribution Process

Collect unwanted
Prepare and Shred the Add fabric textiles to
textiles from the Mix all raw ingredients
Fabric Textiles mixtures
community

Cover molded blocks to

Cure and dry the
retain moisture and Ensure all air bubbles Pour mixtures into
molded blocks for 10-
prevent drying and are gone molding machines
15days
curing

Demold blocks and Promote block samples Distribute blocks to

check quality of blocks Store blocks neatly to retailer stores in the business partners and
per batch produced locality other customers

Our business starts from the collection of unwanted fabricks from the neighborhood of
Bislig in which we will create a community engagement (which is also a form of
promotion for the business). Afterwards would be cleaning the fabric and sorting it by
color, it will also include removing of buttons and zippers and others unnecessary things
attached to it. After such, fabric will be ready to be shredded in the textike shredding
machine. Together with other aggregates such as gypsum, fly ash and cement (with
corresponding ratios) mix all ingredients adding water gradually to the mixture. Once
mixture is ready, it will be poured to the molder and adding of fabric textiles if needed to
ensure that thry are completely filled and compacted. Mold are ready to be manually
check to make sure no air bubbles are present. Allow molds to cure and dry in the
curing area for atleast 1-2 weeks but cover molds with plastic after 3 days to ensure
moisture in the molds. When molds are ready to be demold, proceed and check the
quality of blocks per batch made. Lastly, store blocks neatly in storage room to ensure
no damages will be made.

Since we are targetting business to business relationship, we will be distributing these

blocks to retailers and other hollowblock manufacturers that considers us as their
business partners. We will either deliver them items for display or consignment or will be
delivering their customers directly depending on the terms we will have to agree on.

As a part of promotion for our business, we will make sure that our FB page is active as
well as ensuring promotion of our business partners (directing customers to them
instead of catering to them directly). All businesses that we will create commitment with
will also receive a tarpulin standee in their store that will also promote our product. In
this case, fabrick will be knows to customers and will consider our product against
traditional hardblocks.

3.3 Warehouse Layout

(warehouse floorplan layout still needs to be finished but figure above will be the
production floor plan. Reception and office area together with resting and bathroom area will be
followed as we still havent received the final output for it)

The Warehouse will have the following features:

 - Reception and Office Area outside main warehouse.

-Resting Area and Bathroom outside main warehouse.

- Raw Materials Area and Storage Room

-Mixing and Batching Area

-Modling Area

-Curing Area

3.4 Supplies and Equipment

3 textile shredders Php156,000

2 HD Concrete Mixer 54,000
2 Hollow Block Machine Molder 108,000
2 Manual Concrete Machine Molder 56,000
1 5tons Forklift 138,000
1 Conveyor Belt 12,000
2 Diesel Generator 130,000
Furniture and Fixture and Others:
( Living room set) 13,000
(5 Folding Beds with Foams) 9,300
(1 water dispense) 5,000
(5 Fire Extinguishers) 23,000
( 1 computer set with printer) 21,000
Gypsum, Fly Ash, Cement (bought in tons) 186,000

3.5 Total Project Cost

The total project cost is Php 2,665,800 with the details listed below

Table3.5.1 Capitalization of the Project

Particulars Amount
 Land (Residential Lot 350sqm) 332,500

Building/Warehouse including 812,000

electrical and water services

Permits and Licenses 25,000

Mazda Bongo Truck 335,000

Furnitures and Fixtures 71,300

Machineries and Equipment 654,000

Raw Materials/ Ingredients (est of 186,000

50,000 blocks)

Repairs and Maintenance Fund 50,000

Emergency Fund 200,000

TOTAL 2,665,800

3.6 Operating Hours

FaBrick will be open from Monday to Saturday starting 8:00 am to 5:00 pm but
will be closed for lunch breaks 12noon-1pm. Customers which are mainly businesses
(construction supplies store/ hardwares) can contact us through messenger with our
Facebook page, text/call our business number or can visit the store directly for any
reservations or bulk orders.

3.8 Waste Disposal

FaBrick is ensuring environmental compliance and maintain a clean and

sustainable operation. And implement a waste segregation system within our production
facility. And we separate different types of waste, such as construction debris,
packaging materials, and other non-recyclable or hazardous waste. This allows for
efficient disposal and potential recycling of suitable materials. And explore opportunities
to recycle or reuse waste materials generated during the production process. For
example, crushed or damaged bricks or blocks can be crushed further and used as
aggregate for new batches. And recycling initiatives not only reduce waste but also
contribute to cost savings and environmental sustainability.

3.7 Insurance

To cover financial and legal obligations for our customer personal harm, including
death and property damage, FABRICK will obtain insurance. Additionally, the insurance
covers the fees and costs associated with defending or settling a liability claim brought
against the business.