LemoRub-Chapter-1-4 REVISED

Marketing Feasibility

  • Discusses marketing strategies and tactics for business visibility.

  • Includes target market overview, marketing initiatives, market segmentation, general market description, SWOT analysis, competitive advantage, and supply/demand analysis.

  • Aims to attract and retain customers.

Objectives

  • Explore the market position based on the marketing environment.

  • Promote a new innovative product.

  • Make a reasonable pricing plan.

  • Prioritize customer satisfaction.

  • Determine strengths, weaknesses, opportunities, and threats, including local competitors.

  • Develop strategies for effective marketing, advertising, and promotions, including cost and pricing evaluation.

General Market Description

  • The product is a vapor rub with lemongrass oil, shea butter, beeswax, and Virgin Coconut Oil.

  • Lemongrass oil has commercial value as a food preservative, flavoring agent, and fragrance ingredient (Ganjewala & Luthra, 2010).

  • Lemongrass essential oil (LGEO) has anxiolytic and anticonvulsant activities (Blanco et al., 2009; Silva et al., 2010).

  • The product fights skin damage and irritations, like mosquito bites.

  • It has antibacterial, antifungal, and antiprotozoal properties (Duarte et al., 2007; Irkin & Korukluoglu, 2009; Oliveira et al., 2009; Santoro et al., 2007; Silva et al., 2008).

  • Lemongrass vapor rub can be used for muscle and joint pain and potentially help inflammation-related diseases.

  • Lemongrass has been used in herbal medicine for thousands of years to treat fevers, headaches, colds, and sore muscles.

  • Essential oil is extracted from fresh lemongrass leaves through 3h of boiling hydrodistillation using a Clevenger apparatus (Bidinotto et al., 2011).

  • The extract was stored at 4 °C in a dark receptacle until the moment of use.

  • Cultivation dates back to 17th-century texts from the Philippines.

  • Around 1905, J.F. Jovit began studying the plant, and by 1917, it had been introduced to Haiti and tropical regions of the United States.

  • Growing lemongrass is sustainable since it only requires a small amount of water and grows in tropical areas.

  • Lemongrass is easy to find and grow, but not everyone knows how to make use of it.

Product and Market Assessment

  • Creating an affordable lemongrass vapor rub for relaxation.

  • Capitalizing on lemongrass being not yet popular in the market.

  • Assessing the market situation online and in physical stores.

  • The product is light, small, and comes in handy packaging.

SWOT and Competitor’s Analysis

  • Understanding the market environment requires evaluating strengths, weaknesses, opportunities, and threats.

  • SWOT analysis is essential, along with understanding competitors.

SWOT Matrix of LemoRub

  • Strengths: Multiple benefits as a lemongrass-based product, natural aromatherapy, beneficial for skin health (antifungal, insecticidal, anti-inflammatory), enhances hair and skin.

  • Weaknesses: Not recommended for people with easily irritated skin, lack of cooling effects.

  • Opportunities: Lemongrass vapor rub is new, lemongrass oil can be used to enhance hair and skin health, lemongrass vapor rub is beneficial for skin.

  • Threats: Many other published products are already used, other more beneficial lemongrass products exist.

SWOT Matrix of Vicks

  • Strengths: Widely known brand for cough and nasal congestion relief.

  • Weaknesses: Limited to relieving cough, headache, muscle and joint pain, and nasal congestion; can have side effects like allergic reactions, drowsiness, and eye injury.

  • Opportunities: Vicks already proven it’s opportunities a decade ago. Since they’re very popular, many have already been using their product and they’ve already been taking advantage of their opportunities.

  • Threats: Using too much Vicks may reduce health; users may look for alternative products; many companies are trying to rival their products.

SWOT Matrix of Efficascent Oil

  • Strengths: Popular for strong pain relief, an option for minor muscle aches and pain.

  • Weaknesses: High concentration of ingredients causes skin irritation for some users.

  • Opportunities: The brand can easily market them product because the brand itself, is already popular and many of its The user can guarantee the products effectiveness.

  • Threats: Many companies are trying to rival Efficascent Oil, not guaranteed to stay on top.

Target Market

  • Target market is in Niog Rd. Bacoor City, Cavite.

  • Focuses on men and women students, professors, and school staff aged 18-64.

  • Interested in trying lemongrass vapor rub.

  • St. Dominic College of Asia is the target location.

Population Data

Historical Population (2015)

  • Age Group 18-24: 56,464 (16%)

  • Age Group 25-29: 55,546 (16%)

  • Age Group 30-34: 51,275 (14%)

  • Age Group 35-39: 50,088 (14%)

  • Age Group 40-44: 40,821 (12%)

  • Age Group 45-49: 35,166 (10%)

  • Age Group 50-54: 27,321 (8%)

  • Age Group 55-59: 21,851 (6%)

  • Age Group 60-64: 16,083 (5%)

  • Total: 354,615

  • Source: psa.gov.ph

Projected Population (Age 18-64)

  • 2024: 437,067

  • 2025: 447,338

  • 2026: 457,850

  • 2027: 468,609

  • 2028: 479,621

  • Bacoor City, Cavite, has a population of 757,035 in 2024, with 437,067 aged 18-64, giving a 2.35% annual population growth.

Slovin’s Formula

  • Formula: n = N / (1 + Ne^2)

  • N = population size

  • e = margin of error (5%)

  • n = sample size

  • The number of respondents needed is 200.

Promotional Strategies

Social Media Promotions

  • Use social media platforms to promote and advertise the product.

  • Platforms: TikTok, Facebook, and Instagram

  • TikTok: Short, entertaining videos.

    • Cost: None, unless hired affiliates

  • Facebook and Instagram: Business page accounts to promote the product.

    • Cost: None, unless availed boosting of page

Personal Advertising

  • Sell the VapoRub product personally to interested customers.

  • Cost: Depending on the location

Promotional Expense

  • Content Marketing (Canva & Capcut Premium): ₱2,094

  • Digital Marketing Platforms (Facebook, Instagram, Tiktok): ₱ 0

  • Total Expenses: ₱2,094

Pricing Strategy

  • Competitive pricing that maintains the product's essence.

  • Balance a price that appeals to a wide range of customers.

  • Identify key areas of strength for building a presence and boosting production while controlling costs.

  • Online pricing will not be raised when customers order in Social Media Platforms.

Channel of Distribution

  • Distribute through social media platforms and personal advertising.

  • Use phones or laptops for sales.

Survey Results

Demographics

  • Age:

    • 18-20 years old: 47%

    • 21-25 years old: 43%

    • 26-30 years old: 6.5%

    • 31-40 years old: 1.5%

    • 36-40 years old: 1%

    • 42-45 years old: 0.5%

    • 46+ years old: 0.5%

  • Gender:

    • Female: 60%

    • Male: 40%

  • Income:

    • Below Php 5,000.00: 78%

    • Php 5,001.00 - Php 10,000.00: 7.5%

    • Php 10,001.00 - Php 15,000.00: 7%

    • Php 15,001.00 - Php 20,000.00: 4%

    • Php 20,001.00 - Php 25,000.00: 1%

    • Php 25,001.00 - Php 30,000.00: 0.5%

    • Php 30,000 – Above: 2%

Product Interest & Usage

  • Interest in vapor-rub products: 92% Yes, 8% No

  • Experience using vapor-rub products: 94% Yes, 6% No

  • Frequency of use:

    • Daily: 11%

    • Weekly: 13.5%

    • Occasionally: 42%

    • Rarely: 29%

    • Never: 4.5%

  • Products currently used:

    • Vicks: 72%

    • Kamay ni Nanay: 1.5%

    • Saint Padre Pio miracle rub: 5.5%

    • Others: 21%

  • Willingness to try different vapor-rub products: 96% Yes, 4% No

  • Willingness to try lemongrass vapor-rub: 97% Yes, 3% No

  • Willingness to buy at Php 30: 91.5% Yes, 8.5% No

  • Willingness to recommend to others: 98% Yes, 2% No

Demand Analysis Computation (2025 Projected Population Age 18-30)

  • Interested in vaporub products: 92% (184)

  • Tried using different vaporub products: 94% (188)

  • Willing to try different vaporub products: 96% (192)

  • Willing to try lemongrass vapor-rub: 97% (174)

  • Willing to buy: 91.5% (183)

  • Would recommend: 98% (196)

Computation of Practical Capacity

  • Operating hours: 9:00 AM to 5:00 PM (8 hours)

  • No. of employees (production): 2

  • No. of hours per employee: 8 hours

  • Actual production time: 1 ½ hour

  • Processing time: 30 mins (20 pcs)

  • 1 hour x 60 mins = 60 mins per day

  • 60 mins / 20 mins = 2 batches

  • 2 batches x 20 pcs = 40 pcs LemoRub per hour per employee

  • 40 pcs x 8 hours = 320 pcs LemoRub per day

  • Practical Capacity per Day: 320 per day

  • Monthly Capacity = 320 x26 days = 8,320

  • Daily Demand per Preference

Daily Demand per Preference

  • Lemon grass oil: 70

  • Shea Butter: 80

  • Virgin Coconut oil: 80

  • Beeswax: 200

  • 430

Management Feasibility

  • Emphasizes planning, sales preparation, and coordination for customer satisfaction and loyalty.

Objectives

  • Effective management includes staffing, organizing, directing, and controlling operations to achieve the company's goals and fulfill its vision.

  • Confide the company's mission, vision, and logo to stakeholders.

  • Emphasize the crucial pre-operations phase.

  • Provide a thorough five-year development plan.

  • Determine the amount of labor needed.

  • Explain the rules, motivation, commitment, and guidelines, along with the appropriate pay plan.

Business Name & Logo

  • "LemoRub" from "Lemongrass" and "Rub".

  • Inspired by "Vicks Vaporub".

Vision

  • To become the go-to natural remedy for cold and flu relief by combining the trusted soothing power of Vicks with the refreshing, rejuvenating properties of lemon, offering a comforting, revitalizing experience that promotes well-being and enhances everyday health routines.

Mission

  • Our mission is to provide a refreshing and effective solution for cold and flu relief by combining the trusted soothing power of Vicks with the natural benefits of lemon, offering consumers a comforting and revitalizing experience that promotes wellness, supports respiratory health, and enhances daily self- care routines.

Pre-Operating Period Activities

  • March 2025 – April 2025:

    • Ascertain target demographics, competitors, potential locations, and carry out market research.

    • Provide a thorough business plan.

  • April 2025 – May 2025:

    • Implement marketing plan and promotional tactics.

    • Begin store looking for space to lease in June 2025.

    • Improve physical store/designing our store.

    • Obtain all requirements, business permits, and legal paperwork.

    • Purchase all the materials and equipment needed.

    • Hire personnel during the first two weeks and training will take place the following week.

    • Start the purchase of ingredients one week before as part of the training initiatives of the establishment.

    • Final adjustments for the entire store.

    • Ensure the firm is prepared.

  • May 2025

    • LemoRub will start its business activities.

Five Year Development Plan

  • Focus on improving marketing strategies and seasonal promotions.

  • Constant yearly attention reveals continuous development.

  • Leverage seasonal events and trends to boost customer involvement and revenue.

Manpower Requirements

  • Small group of committed and capable workers needed.

  • Organizational Charts

  • Position NO. OF EMPLOYEES

  • Production 3

  • Packer 3

  • Sales Personnel 2

  • TOTAL 8

Job Analysis

  • Production

    • Monthly Salary: ₱ 13,520.00

    • Benefits: SSS PhilHealth Pag-Ibig 13th Month Pay

    • Skills: Be able to work quickly and accurately and be physically fit to perform repetitive tasks. They should also be able to work in a team environment.

  • Packer

    • Monthly Salary: ₱ 13,520.00

    • Benefits: SSS PhilHealth Pag-Ibig 13th Month Pay

    • Skills: Preparing items for shipment by locating, packing, and labeling products for delivery, ensuring accuracy and proper packaging to meet customer orders and maintain a safe work environment.

  • Sales Personnel

    • Monthly Salary: ₱ 13,520.00

    • Benefits: SSS PhilHealth Pag-Ibig 13th Month Pay

    • Responsibilities: Selling the product, talking to the customers, and presenting the product

  • Operating Schedule
    The alternating schedules allow for maximum operational efficiency without overburdening any single team member, ensuring consistent production output, effective packing, and customer service availability. The smooth handoff between production, packing, and sales ensures that LemoRub products are consistently produced, packed, and ready for distribution.

Article of Partnership

  • Establishes a legally binding agreement among business partners to pool capital and labor and share profits, losses, and liabilities.

  • ARTICLE I. PARTNERSHIP NAME: “LemoRub”

  • ARTICLE II. BUSINESS PURPOSE: To help the community as well as to gain profit

  • ARTICLE III. PRINCIPAL PLACE OF BUSINESS: Bacoor City, 4102 Cavite

  • ARTICLE IV. TERMS OF EXISTENCE: term of 5 years

  • **ARTICLE V. PARTNERS’ CIRCUMSTANCES:
    ** * ZUÑIGA, JUSTINE KAYE
    ** * ARADAZA, ANDREA JANINE
    ** * ROSACEÑA, MARC

  • ARTICLE VI. CAPITAL CONTRIBUTION: Six Hundred Thousand pesos (Php 600,000)

    • ZUÑIGA, JUSTINE KAYE P200,000
      ** * ARADAZA, ANDREA JANINE P200,000
      ** * ROSACEÑA, MARC P200,000

  • ARTICLE VII. SHARING RATIOS: capital contribution will be considered when dividing and allocating the partnership's earnings and losses.

  • ARTICLE VIII. MANAGEMENT: Owners are Zuñiga, Aradaza and Rosaceña

  • ARTICLE IX. UNDERTAKING TO CHANGE NAME: partners agree to change the partnership's name.

Policies and Regulations

  • Established to give employees a positive work atmosphere and create a space where customers would enjoy themselves.

  • Employee Conduct & Workplace Behavior:

    • All employees must respect each other and do not tolerate any negative behavior

    • We ensure a safe environment, that is why if you see one of your co-workers being harassed by another co-worker, please report immediately.

    • Dress code is very important, all employees must be wearing their proper uniform 10mins after arriving.

  • Workplace & Safety

    • Must wear your proper company uniform for safety.

    • No smoking inside the premises.

  • Time Off & Attendance

    • Attendance Policy: message or talk to the manager in advance if you’re going to be absent and specify the exact date two days before your absence.

    • If you feel sick. You must tell your manager so that you don’t mark as “no show”.

  • Other Important Policy

    • Employee Complaint Policy: If you have any complaint, please refer to the manager so that we can take immediate action regarding the complaint

Uniform

  • Staff members are expected to wear neat shirts, pants, and apply hairnet.

Compensation Scheme

  • Schedule 2: Salary and Benefits of Employees

Technical Feasibility

  • Discusses manufacturing flow, service workflow, business procedure, inventory of supplies, machinery and equipment, product cost, business location, and estimated power consumption.

Objectives

  • Identify equipment, materials, and tools needed.

  • Pick a suitable company location.

  • Create a procedure to guarantee an effective and successful operation.

  • Calculate the price of utilities, such as internet, power, and water.

  • Ascertain the product's cost and method.

Service Workflow Chart

  • Preparation for store opening.

  • Prepare the required items and measure all the ingredients.

  • Prepare all the orders online, pack them, deliver to buyers, and accept payment online or COD.

Manufacturing Flow Chart

  • Preparation of all Ingredients

  • Measure all the ingredients needed

  • Print all the Information Details of the buyer for delivery

  • Pack all the order of vaporub and input the sticker information detail for delivery.

  • Ready for Pick Up to Deliver

Product Costing

  • Product Name: LemoRub

  • Yield: 6 (5ml )

  • Total Cost: ₱ 38.60

  • Inflation Rate (2.9%): 1.20

  • Packaging Cost: ₱ 42.00

  • Total Cost: PHP 81.80

  • Total Unit Cost: 13.63

  • Mark up: 22.09

  • Government Tax :4.28

  • Selling Price: PHP 40

Raw Materials

  • Lemon grass oil

  • Shea Butter

  • Virgin Coconut oil

  • Beeswax

Procedure

  • Melt beeswax and coconut oil,

  • add essential oils like eucalyptus

  • stirring until combined

  • and pour into a container to cool and solidify.

Tools and Equipment Needed

  • Measuring Cup

  • Saucepan

  • Whisk

  • Lip balm tube

  • Bowl

List of Suppliers

Raw Materials

Raw Materials Supplier Address

  • Lemon grass oil Cedar Alley Enterprise Canberra 4114 Dasmarinas, Philippines

  • Shea Butter Cyleina Organics B2 L15 V. Pacis St. ESOPA Subd. BF Resort Vill Las Piñas

  • Virgin Coconut oil Cyleina Organics B2 L15 V. Pacis St. ESOPA Subd. BF Resort Vill Las Piñas

  • Beeswax Cyleina Organics B2 L15 V. Pacis St. ESOPA Subd. BF Resort Vill Las Piñas

Furniture and Fixtures

  • Total: ₱80,231.50

Production Equipment

  • Total: ₱13,507

Production Tools

  • Total: ₱1,332

Store Supplies

  • Total: ₱595

Medical Supplies

  • Total: ₱707.00

Cleaning Supplies

  • Total: ₱1,589

Utilities

  • Electricity Expenses: ₱2,100.00

  • Water: ₱556.00

  • Internet: ₱999.00

  • TOTAL: ₱3,655

Appliances Computation

  • Refrigerator: ₱1,300

  • Induction Stove: ₱800

  • Total: ₱2,100

Waste Disposal

  • Responsible waste disposal for a clean, safe, and eco-conscious environment.

  • Comply with local regulations and promote sustainability.

Business Location

  • Includes image of the location.

  • Rent Expense:

    • The rental fee of the space is PHP 8,000.

Financial Feasibility

  • Investigates financial factors to determine capital requirements, profitability, liquidity, solvency, and operational efficiency.

Objectives

  1. Determine the necessary capital for the establishment of a business.

  2. Assess the proposed project's long-term profitability.

  3. Evaluate operational efficiency, profitability, liquidity, and solvency by examining financial ratios.

Initial Capital Requirement

  • SIX HUNDRED THOUSAND PESOS (₱ 600,000.00)
    ZUÑIGA, JUSTINE KAYE P200,000.00 33.33%
    ARADAZA, ANDREA JANINE P200,000.00 33.33%
    ROSACEÑA, MARC P200,000.00 33.33%

  • Assumptions

  1. The first year of operation is equivalent to 8 months since the business operation will commence in May 2025

  2. The increase in sales of 7.16% is based on the rate of increase in the population of the target market, which is 2.16% and 5% increase in price.

  3. The increase of prices of supplies, utilities and other expenses is based on the prevailing inflation rate of 2.9% and it is estimated to be constant during the five-year period.

  4. The taxes, licenses, and permits of the business is based on the projected expenses for a business permit and other items that will be expended on the first year of operations; all others are obtained their actual expenses in a government’s agency website (e.g. SEC and BIR).

  5. Salaries and wages will increase at 2% per year based on the prevailing increase of salary in the past year.

  6. Rent expense for the first year is equivalent to 10 months including the renovation period that will start on March 2025. The subsequent years will be fixed for the duration of 5 years.

  7. The establishment is a VAT-registered entity.

  8. The estimated useful life of machineries and furniture and fixture is 5 years, while production tools is one year.

  9. Production tools will be purchased on a yearly basis.

  10. Repair and maintenance expense is estimated at 5% of the value of fixed asset on the first year and will exceed by another 5% on the succeeding years.

  11. The prevailing income tax rate is 20%.

Total Project Cost

TOTAL PROJECT COST

Plant Property and Equipment

  • Furniture and Fixtures: P 80,231.50

  • Machineries & Equipment: 13,507.00

  • Production Tools: 1,332.00

  • Total Fixed Asset P 95,070.50
    Pre-Operating Period

  • Medical Supplies: P 707.00

  • Cleaning Materials: 1,589.00

  • Store & Office Supplies: 595.00

  • Leasehold Improvement: 50,000.00

  • Permits and Licenses: 25,000.00

  • Advertisement: 2,094.00

  • Prepaid Rent: 24,000.00

  • Transportation: 3,000.00

  • Total Pre-operating Expenses: P 106,985.00
    Initial Working Capital

  • Inventory Purchases P 28,350.40

  • Utilities 3,655.00

  • Rent 24,000.00

  • Salary 324,480.00

  • Cash on Hand 17,459.10

  • Total Initial Working CapitalP 397,944.50
    Total Project Cost P 600,000.00

Income Statement

LEMORUB
Income Statement

For the year ending, December 31, 2025 to 2029
Revenue:
2025 2,662,400.00
2026 4,283,854.85
2027 4,595,205.42
2028 4,929,184.95
2029 5,287,438.11

Less Vat 12%:
2025 285,257.145
2026 458,984.45
2027 492,343.44
2028 528,126.96
2029 566,511.23

Less Cost Schedule 1:
2025 907,212.80
2026 1,430,529.07
2027 1,503,809.92
2028 1,580,844.69
2029 1,661,825.67

Add: Input Vat:
2025 108,865.54
2026 171,663.49
2027 180,457.19
2028 189,701.36
2029 199,419.08

Gross Income:
2025 578,795.59
2026 2,566,004.82
2027 779,509.25
2028 3,009,914.66
2029 3,258,520.29

The following is a list of Operating expenses, and schedules:
Salaries
Employee benefits
Rent Expense
Advertising
Store and office supplies
Medical Supplies
Cleaning Materials
Depreciation expense
Utilities expense
Miscellaneous expense
Transportation
Repair & maintenance
Permits

Net Income:
2025 340,073.95
2026 580,999.82
2027 763,331.30
2028 961,660.67
2029 1,177,233.98

Income Tax:
2025 68,014.79
2026 116,199.96
2027 152,666.26
2028 192,332.13
2029 235,446.80

Net Income after Tax:
2025 272,059.16
2026 464,799.86
2027 610,665.04
2028 69,328.53
2029 941,787.18

Cash Flow Statement

LEMORUB

Cashflow Statement
December 31, 2025 to 2029

The following is a list of:
Operating Activities
Net Income after Taxes
Output Vat
Inventory
Vat Payable
Business Taxes
Rent Deposit
Depreciation
Net Cash
Machineries and Equipment
Leasehold Improvement
Furniture & Fixtures
Production Tools
Financing Activities
Net Cash Provided
Cash Beginning
Cash Ending
Year 2025 2026 2027 2028 2029
Cash Begin 600,0002025 1,051,001.18 1,767,264.35 2,455,961.91 3,307,336.44
Cash End 1,051,001.18 1,767,264.35 2,455,961.91 3,307,336.44 4,335,496.48

Balance Sheet

LEMORUB
Statement of Financial Position

December 31, 2025 to 2029

The following is a list of:
Assets
Liabilities:
Output Vat Sales
Business Tax Payable
Vat Payable
Owner's Equity
Capital Beginning
Add: Net Income
Total

Schedule of Expenses

Projected Cost and Revenue

2025-2029
The following list of product:
Selling Price Cost per Unit No. of Products Monthly Revenue (Monthly) Annually
LEMORUB
Selling Price Cost per Unit Annual Costing

Schedule:2 Salary and Benefits
MONTHLY RENT

2025 RENT (9 MONTHS) April to December 72,000.00
2026 TO 2029 (FIXED RENT FOR 5 YEARS) 96,000.00

Promotional Expense

Description Details Amount

CONTENT MARKETING: Making quick films, editing a post, and sharing it on social media: Canva Premium Subscription 3 months: Per Month 299 Php 299 x 3mos =Total: ₱897
Capcut Premium Subscription 3 months: Per Month 399 Pph 399 x 3mos Total ₱1,197

DIGITAL MARKETING PLATFORMS:  Facebook Instagram Tiktok 1 advertisement post on each platform:Total: ₱0
TOTAL EXPENSES P 2,094

Store & Office Supplies

Particular Description Qty Cost Amount

Medical Supplies

Particular Description Qty Cost Amount

Cleaning Supplies

Particular Description Qty Cost Amount

PAYBACK PERIOD

Based on the financial data of the business, the partners can recover their investment in the span of two years, with the Return on