ESTABLISHMENT OF BEESMART MANUFACTURING COMPANY:

MANUFACTURER OF “HONEY MOISTURIZING SOAP”

IN MALVAR, BATANGAS

Caringal, Jeremiah T., Manalo, Jimmilyn N., Pitogo,Jaymica B.

Batangas State University JPLPC Campus, Malvar Batangas
maicaringal108mail.com,jimmilynmanalo@yahoo.com, jaypitogo682@gmail.com

ABSTRACT

Establishing a manufacturing enterprise that will improve the way of living their society would be the
goal of this study. Through the intense research, the proponents came up with the idea of making soap out of
Honey. This drives the researchers to transform this business into affordable and beneficial product through
establishing BEESMART MANUFACTURING ENTERPRISE,
The objectives of the study is to exploit the opportunity in using Honey Syrup as a good substitute to
other commercial soaps creating more beneficial way to enjoy healthy young looking skin in everyday life. The
proponents would make Honey Moisturizing Soap without adding any harmful chemicals hat can possibly
harm the skin of the buyers. Through the products main ingredient which is natural, the price does not vary
from the other existing products. The proponents computed a 8.22 %market share for the firm. In line with this,
the firm will have total investment cost of P480, 000 enough to sustain it for two months and return of
investment 1 year 2months and seven days. Creating the BEESMART Manufacturing Company’s primary
product which is Honey Moisturizing Soap requires several process that includes preparation of ingredients and
materials, Sterilizing, scraping, slicing, extracting, mixing, adding, blending and mixing, melting, dropping,
pouring, molding, cutting, cooling and drying, inspecting the finished product, packaging, and storing.
Lastly, the firm would lower the harmful effect of chemical to the health of consumers with its vision
of helping the community. The firm is committed to the production of Honey Moisturizing Soap that would
benefit largely the communities within the country to have a tool for learning at a very affordable price.

Keywords: Moisturizing Soap, Honey, Beeswax

1. INTRODUCTION soap was made by Babylonians around 2800 B.C.

The perception of beauty and hygiene vary
widely across the geography and demographics, a
recent global survey by the research firm revealed
that definitions of beauty and hygiene maybe
shifting for global consumers into something that
prioritizes being comfortable in one’s own skin
and feeling confident over external features.
Filipinos as of today were taking hygiene as an
important factor when facing with other people
because it helps build their confidence. Hygiene
starts at home when the members of the family are
using products that may help maintain their proper
hygiene in everyday life. (Krawcheck 2016)
In maintaining proper hygiene, soap is one of
a remarkable substance known from pre-historic
times. It is one of the most common hygienic
product offered in the market to maintain personal
hygiene which is use to bathe the body. In the
beginning, soap is defined as a product for
cleaning made from natural ingredients such as
plant and animal products including fats, such as
olive oil or coconut oil. It supposedly got its name
from Mount Sapo in Rome. The word soap came
from the Latin word “sapo” which is first appeared
in Pliny the Elder’s Historian Naturalist. The first
The most basic supplies for soap making were
those taken from animals. The cold process
method is the most popular soap making process
today, while some soap makers use the historical
hot process. Since Philippines is a tropical country
Filipinos are often prone to skin dryness.
The proponents chose honey and beeswax to
develop a soap that will help moisturize the skin of
the users since these ingredients may help to seal
moisture to the skin. Honey is composed of a
sweet, sticky yellowish-brown fluid made by bees
and other insects from nectar collected from the
flowers. The scientific name of this fluid is Apis
mellifera. Honey is naturally antibacterial, so it is
great for acne treatment and prevention. It is also
full of antioxidant which is great for slowing down
aging. It can also moisturize the skin and creates
glow.
 Brand Name
Bee-Youthful
Plate 1. Brand Logo
 The proponents came up with the brand name
Bee-Youthful that provides beauty and hygienic
products which are made up from honey that can
help achieve a soft and young looking skin.
 Location
The plant location of BeeSmart
Manufacturing Company is located at Barangay
San Pedro I Poblacion Malvar, Batangas. It is
established in the said area because it is going to
be the first soap company located in that specific
location. The location of the business for the
proponents is accessible to the market not just for
the residents near the establishment but also for the
people from other places who will pass through the
Star toll way. This location will be accessible for
the raw materials needed in the proposed products
since most of it will be from Malvar Batangas.
1.3 Descriptive Definition of the project
Guided by the researches, the proponents arrived
with the decision of proposing “Honey
Moisturizing Soap” using Honey Syrup as the
main ingredient of the product. The proponents
developed a new line of soap that seals moisture to
the skin, satisfies consumers’ choice of hygienic
product, and emphasizes the potential of
Moisturizing Soaps.
Adding this line of soap that serves as a
good source of skin humectants- meaning it seals
moisture to the skin of an individual. Moreover,
availability of resources is also given
consideration. Since honey farm is commonly
found in the Province of Batangas, the supply of
raw materials will not be a problem. Basically,
consumers are considered in buying a product
especially that they are mostly to benefit. It is the
purpose of the proponents to expose the market
into a new kind of food products. The rationale of
proposing this feasibility study of manufacturing
“Honey Moisturizing Soap” is to provide
consumers a better choice of soap made from
Honey Syrup as its main ingredient that can meet
customer satisfaction.
Government agencies such as Securities
and Exchange Commission, Department of Trade
and Industry, Department of Labor and
Employment, Bureau of Internal Revenue, the City
Permit and Licenses Division, the Municipality
Planning and Development Office of Malvar,
Batangas were also consulted to make sure that all
the legal requirements needed in operating a
manufacturing firm will be complied with.
The main component of the product is Honey
Syrup which will be purchased from the supplier
in Malvar, Batangas. The proponents also
considered purchasing it from other places if it will
lead lower cost but not to sacrifice quality.
To finance the proposed project, partners
agreed to contribute Php160, 000.00 each, with a
total of Php 480, 000.00. Profits and loses will also
be distributed in equal proportions.
 Project Long Range Objectives
Like other manufacturing or business firms
the proponets of BeeSmart want their company to
grow and have a good reputation as a major
manufacturer of Honey Moisturizing Soap in the
country.
The firm wants to make sure that the
consumers will patronize the product and hope to
achieve their objective in the succeeding five
years. This includes increasing their production
capacity and franchising the business from the
place to place. Investing for machine
improvements to optimize production and logistics
will also be part of their long term goals to expand
the target market, from Batangas.
Aside from this the firm aims to contribute to
the economy of the country by alleviating the
number of unemployed people and helping it to
increase the gross domestic product (GDP) growth
rate.
1.5 Feasibility Criteria
The projects feasibility will rely on different
aspects and to begin with, the first one pertains to
the market. According to Statistics, the market is
expected to grow annually by 5 %. In order to meet
the increasing demand for the commonly that is
also fuelled by the proliferation of more soap
industry in the country.
 Highlights of the Project
The Highlights of the project includes the
history, the nature of the firm, and the mode of
financing to be used by the proponents. These
components give details on how the researchers
come up in establishing a business. In addition, the
time table created to emphasize and prioritized the
different factors of the firm and its proper
dissemination of the step by step procedures will
be known by the readers.
 Major Assumption and Summary of
findings and conclusions
The marketing aspect covers the target market,
competitors, method, 4P’s, SWOT Analysis and
strategies. The proponents made two sets of survey
questionnaires for the 385 household respondents
and 50 retailers to determine the willingness to
purchase the proposed product for resell and to
know if the product has a chance to become
feasible. The proponents went to Tanauan City,
Batangas to identify nine (9) different urban
barangays including Barangay Poblacion I to
Barangay Poblacion VII, Sambat and Darasa from
the City Planning and Development Office. The
researcher used the Slovin’s formula to compute
the sample size and statistical straight line in
computing for the projection to arrive at the
estimated market of the proposed product. Through
the data gathered, the proponents identified the
historical supply and demand of the related product
to the proposed product for the past 5 years which
is the 2014–2018 which is 143,170 moisturizing
soaps on its first year operation. The proponents
also identified the projected demand and supply for
5 years which from the 2021–2025 that shows
187,381 moisturizing soaps on its first year
operation for the projected demand and 45,216
moisturizing soaps for its projected supply that
became the basis for identifying the market gap
which is 549,476 moisturizing soaps in its initial
year that will be of help for the projection of
financial statements and at the same time the
production capacity. The market share is expected
to be 8.22% in the same year of business operation.
Socio economic contribution discussed
the obligation and responsibility of the proposed
business to the environment. BeeSmart
Manufacturing Company will support the national
economic development through their earnings and
hiring that would be part of the budget of the
government for economic development. Through
the proposed product, the firm will contribute by
creating jobs for unemployed and paying taxes that
help the government in improving the lives of the
people through their project. Concerning the
environmental issue, the company will follow the
rules and regulation of the proper waste disposal.
The goal of the firm is to satisfy not only the
customer but also to meet the environment and
economics' expectation.
2. MARKET STUDY
2.1 Product Description
Honey Moisturizing Soap is a new variety
of soap that will give satisfaction to the
consumers’ wants and needs.
The proponents used the Honey syrup as
the main ingredient of the Honey Moisturizing
Soap to help maximize its potential, to satisfy the
needs of the customers as well as to give them a
beneficial, natural and affordable option than the
usual soaps sold in the market.
The product is packed at 1 piece per box.
Each box contains 60grams. Honey Moisturizing
Soap has benefits that will satisfy the consumers.
The primary use of the product is to offer the
market an alternative for soap commonly sold in
the market, and meet the satisfaction of the
consumers in purchasing affordable snack.
The proponent’s plant will be situated at
Malvar, Batangas. The place was chosen because
of its accessibility not only to the customers but
also to the suppliers of the raw materials for the
product. It will be more convenient to end users to
avail their product.
2.4 Price Study
The pricing approach should reflect the
appropriate positioning of the product in the
market. The result should neither be greedy or
timid. The proponents set the price according to
the competitor’s price and to the direct and indirect
materials that would be used in the production.
Table 2. Computation of Selling Price
Manufacturing Costs Price
Direct Material Used/Unit
Labor Cost/Unit
Factory Overhead/ Unit
Total Cost/Unit
Markup to Retailers
Selling Price for Retailers
(Exclusive of VAT)
Output VAT
Selling Price for Retailers
P45.00
(Inclusive of VAT)
Table 2 shows the computation of the selling price
of Honey Moisturizing Soap. The price is based on
the direct materials, direct labor, and factory
overhead with a mark-up of 12% for the retailers
and output VAT of 12% 60grams. Honey
Moisturizing Soap is offered in the market at
P45.00 per unit.
When setting prices, proponents need to
consider a wide range including production costs,
competitor offerings, positioning strategies and the
business target customer. Pricing strategy helps to
determine the price point at which one can
maximize profits on sales of the product or service.
The product should be set in affordable price to
attract large of customers and gain large market
share. The suggested retail price will be
approximately Php 45.00 per box.
3.TECHNICAL FEASIBILITY STUDY
This study involves the product’s physical,
technical features and the manufacturing process
including the raw materials, equipment and
machineries used in making the product, the
process and the timeframe of the production
process.
3.1 Manufacturing Process
Figure 1. Manufacturing Process
3.2 Plant Size and Production Schedule
The plant size is large enough to
accommodate all the business transactions and it
can also manage if the business will enlarge the
production of Banana vinegar in the future.
Productions schedule discusses the
company’s manpower requirement, operating
working days, time and schedule of the production
set by firm. There will be eight (8) working hours a
day, six (6) working days in a week, and an
average of twenty four (24) days in a month with
an average of 288 days in a year.
3.3 Plant Layout
Plant layout is primarily concerned with the
internal set up of an enterprise in proper manner.
Also, it is orderly arrange which composed of the
available resources to be used, men, money,
machines, materials and method of production
inside the factory.
The plant size layout shows how each department
is divided to provide the workers a good ambiance
and comfortable work place. The storage area is a
place where the products made will be stored and
ready for delivery. There will be a business office
in which the transaction will be made. The couch
for the customer and the comfort rooms is also be
included.
The proponents rent a vacant house it cost
P10,000.00 every month. The plant is a 8x9 square
meters building which has six divisions, including
the production area, storage room, administrative
office, comfort room and finished product area.
The size of the plant is good enough to have a
comfortable working area and accommodate all the
clients that would visit the company.
Figure 2. Plant Layout
Plate 2. Plant Layout
3.4 Waste disposal
The most important reason for waste
management is to protect the environment and for
the safe and health of the population. Managing the
waste of a business will result in valuable materials
to reuse. BeeSmart Manufacturing Company set
their own business rule to help the environment
such as; proper waste segregation of non-
biodegradable to biodegradable waste materials,
introducing a waste reduction program, and
exercising the 3R’s (Reuse, Reduce, Recycle)
4. FINANCIAL STUDY
This portion determines the profitability level
of the project which is generally defined as the
relationship of the net income after taxes to the
total investment. It is also involves a thorough
coverage of all the monetary information of the
enterprise. It covers detailed information on the
total project cost, initial capital requirements,
sources of financing, financial statements and the
financial analysis.
This study is most beneficial for the
proponents since this will be the measure if the
proposed business will be profitable. The financial
health and performance of the business will be
assessed with the use of this study.
The proponents total project cost of P
480,000.00 covers the two month operation of the
business. Careful consideration of the several
factors that affect the present and future financial
position, performance and cash flow of the
enterprise must be studied. BeeSmart
Manufacturing Company statement of financial
performance reveals that it would earn 45,216 in
2021 and would increase up to 228,096 in 2025.
The firm’s expected payback period is in 1 year, 2
months and 7 days.
Financial assumptions were made for the
proper preparation and presentation of the financial
statements of the firm within five years. The
results of the financial analysis and financial mix
ratios done with the financial statements show that
the firm is both liquid and profitable. This is
supported by the capital budgeting technique
which illustrates that ROI exceeds the cost of
capital which means that the firm is profitable.
Moreover, the payback period and discounted
payback period shows that the firm can recover its
investment in less than a year making the firm
liquid. Liquidity entails that the firm can pay its
obligations within five years. By taking advantage
of the economies of scale, it resulted to the
profitability of the firm. Based on all the analysis
made, the firm is affirmative in generating income
within 5 years of operation and in the future.
Cost of Cash Payback
Year Investment Flow Period
1year 2
2021 480.000 45,216.00 months
and 7 days
Payback period determines how many years it
will take for the investors to have their initial
investment or the time required for the amount
invested in an asset to be repaid by the net cash
outflow generated by the asset.
It is simple way to evaluate the risk
associated with a proposed project. The payback
period is expressed in users and fractions of years
5. SOCIO ECONOMIC FEASIBILITY
This chapter will discuss the importance of
the business in order to generate profits and also
the benefits that will contribute help to the
economy and social environment. Nowadays, it is
important that small entrepreneurs should realize
the worth innovating and starting a business that
would largely contribute to the socio-economic
development of the country.
Every business establishment has the strong
desire to earn huge amount of profit but it should
not be the only aim when building a business but
the social and economic benefits that it may
contribute for the welfare of its constituents as
well. This study will help in obtaining the socio-
economic contributions that the business can offer.
5.2 GOVERNMENT
One of the company’s liabilities is to pay
taxes that will facilitate development and
infrastructure on the government for the citizens
that are residing in and outside of the country.
These taxes will cast off for sustaining the fund for
social programs and public investments to promote
economic growth and development. Programs
providing health, education, infrastructure and
other amenities are important to achieve a common
goal of a prosperous, functional and orderly
society. And they require that governments raise
revenues. Government also committed to achieve
inclusive growth through investment, increase
competitiveness, improve access to financing, and
improve social services, a stable macroeconomic
environment, and ecological integrity. Quality
education, appropriate science and technology
appropriations, and advance peace process
alongside improved national security.
5.2 ENVIRONMENT
The firm will thoroughly follow the rules and
regulations in Republic Act No.99 ( Ecological
Solid Waste Management Act) by ensuring that the
waste materials that the company will dispose
would not cause any harm to the environment. The
firm will introduce the use of the waste materials
as fertilizers since it was purely from organic
materials. The Bee Farmers can also be benefited
by the proposed manufacturing firm for the firms
demand for Honey Syrup that can lead to increase
in their farming and lead to generate more income.
5.3 LABOR EMPLOYMENT
BeeSmart Manufacturing Company considers
labor and employment since it requires workers to
operate for the first time. One of the main reasons
of the proponents in establishing this business is to
increase the economic status of Malvar at
Municipality of Malvar and to improve the
standards of living families and individuals near
the business, where the workers can also be
assured to claim the rights such as workers can
also be assured to claim rights such as workers’
pay, benefits, and safe working conditions
The business owners will acquire a
percentage of their investment in the banks.
Through interest rates issued, financial business
like bank could generate profits that could create
increasing flows of cash on the banks. Thus,
establishing this business creates jobs and
occupation for those people and to decrease the
rate of unemployment in the locality.
5.4 BENEFITS TO PEOPLE
 BeeSmart Manufacturing Company will
make a new kind of moisturizing soap. This
product will be named Honey Moisturizing Soap.
This name is derived from the main ingredient of
the product. This Soap contains Honey syrup as the
main ingredient of the product. The finished
product is yellowish-white in color and has a
flower shaped appearance.Each box of Honey
Moisturizing Soap has benefits that will satisfy
cunsumers needs.
Because of high demand of the product raw
materials demand also increases. The suppliers are
encouraged to farm more bees that could generate
income. The number of workers employed in the
business due to its manual labor in production.
Also the BeeSmart Manufacturing Company
aims to give a very important consideration to
what the establishment could provide benefits to
the workers and to the customers. It reduces the
number of unemployment rate in the area through
providing jobs for the people where it includes
trainings and seminars to enrich the abilities,
capabilities and skills of individuals in making
beverages. The business also helps in doping
community services in the municipality to
encourage awareness within the people and to
promote impact in the society.
6. ORGANIZATIONAL AND
MANAGEMENT FEASIBILITY
Organization is defined as a social unit of
people that is structured and managed to meet a
need to pursue collective goals. It determines the
relationships between the different activities and
members, and subdivides and assigned roles,
responsibilities and authority to carry out different
tasks. The figure below shows how BeeSmart as an
organization was structured.
Figure 3. Organizational Structure
Figure 3 shows the organizational structure of
BeeSmart Manufacturing Company. Every
employee has his or her own task and
responsibilities. The general manager assigns to
manage the business in its every transaction and
operation. Two (2) workers will act as the
production workers who are in charge in the
manufacturing of products and a part time
bookkeeper.
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Terry,(2015)Management Study Dedinition. To the various government agencies and
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for giving the necessary data and information
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needed to achieve a reliable and realistic project;
Valix, (2012)Statement of Changes in Eqity.
To the respondents and various business
Retrieve from https://www.slideshare,ne
establishments of Tanauan City, for sharing their
time and cooperation in providing the necessary
A. Unpublished Material information during the actual survey;
Manabat, Manalo, Nollas, (2018) To the proponent’s family, for extending their
“Establishment of Mind’s Eye Manufacturing wholehearted, generous and undying support
Enterprise: Manufacturer of 2-in-1 Shoe Polisher morally, emotionally, and financially and for
in Barangay Bagumbayan, Tanauan City giving them inspiration they much needed;
Batangas” Unpublished Feasibility Study,
And above all, to God for giving the
Batangas State University-JPLPC Malvar,
proponents wisdom, strength, knowledge,
Batangas
determination and guidance to complete the study
and to overcome the inevitable circumstances that
ACKNOWLEDGEMENT arose while conducting the study;
The proponents would like to extend their The proponents will always be thankful for
gratitude and warm appreciation for the following their support for the fulfilment of the study.
persons and institutions who have contributed their
expertise for the completion of the study.
-Jeremiah
To Batangas State University JPLPC – -Jimmilyn
Malvar Campus and the College of Accountancy, -Jaymica
Business, Economics and International Hospitality
-Jim
Management (CABEIHM) for letting them pursue
-Ja
the study and for nurturing their skill and
knowledge;
To the Dean of Colleges, Dr. Amado C.
Gequinto for his approval to conduct this study.
To the Associate Dean of CABEIHM, Dr.
Dennis B. Legaspi for his valuable suggestion and
recommendations for the betterment of this study.
To the Chairperson of the Panel, Asst. Prof.
Lucina S. Lat for her support and giving
constructive criticisms and suggestions in order for
the project to be successful;
To Ms. Jenica N. Frias, Feasibility Adviser,
for her valuable assistance and for imparting his
knowledge which assisted the proponents to a
more reliable study;
To the Panel Members, Dr. Dennis B.
Legaspi and Ms. Jasmin A. Matanguihan who had
patiently, intelligently, given assistance and
imparting their knowledge to validate and improve
the feasibility;
To their Registered Chemists, Mr. Ronald A.
Robea, for testing and providing the acidity level
of the product;
To Mr. Kenneth R. Magpantay for helping
them to compute the financial aspect of this study;
To Ms.Ciara G. Lumbera, their grammarian,
for meticulously editing every chapter of this study
technically and substancially.