Lumière Candles Business Proposal PDF
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Uploaded by HilariousInsight1679
Saint Mary's University
2024
Boac, Geane Aubrey R. Castañeto, Cleyr Caroline D. Collit, Czarina Q. Ilarde, Danica R. Policarpio, Aldrich Paulo I. Querido, Aristotle A. Salvador, Kaycee B. Tabao, Michaela T.
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Summary
This business proposal details Lumière Candles, a new business focused on producing unique, beautiful candles made from organic native materials. The proposal emphasizes aromatherapy benefits, environmental responsibility, and culturally sensitive practices. The business aims to deliver quality sustainable wellness.
Full Transcript
Lumière Candles “Set the Mood, Ease the Mind” A Business Proposal Presented by: Boac, Geane Aubrey R. Castañeto, Cleyr Caroline D. Collit, Czarina Q. Ilarde, Danica R. Policarpio, Aldrich Paulo I. Querido, Aristotle A. Salvador, Kaycee B....
Lumière Candles “Set the Mood, Ease the Mind” A Business Proposal Presented by: Boac, Geane Aubrey R. Castañeto, Cleyr Caroline D. Collit, Czarina Q. Ilarde, Danica R. Policarpio, Aldrich Paulo I. Querido, Aristotle A. Salvador, Kaycee B. Tabao, Michaela T. Presented to: Mrs. Gayle R. Mercado, MPA, MBA October 2024 Mission Lumière Candles has focused on producing unique and beautiful candles made from organic native materials. To improve clients’ condition by providing them with an aromatherapy session while being environmentally friendly and culturally sensitive. Vision We envision a world where lighting a candle transforms spaces into sanctuaries of calm. Lumière Candles’ goal is to deliver quality, sustainable wellness to enhance human everyday life honoring the environment and local communities. GOALS AND OBJECTIVES Our goals and objectives are to act in line with United Nations Sustainable Development Goals (SDGs) 3 (Good Health & Well-being) & 12 (Responsible Consumption & Production) by manufacturing products that enhance mental health and highlighting the environmentally friendly approach to their use. With this in mind, we aim to: - Develop eco-friendly products by creating handmade candles made from natural and sustainable materials. - Source materials responsibly by partnering with local businesses to promote ethical practices. - Ensure the quality and safety of the products by following the standards and focusing on delivering safe and high-quality candles with proven benefits. - Build a feedback system that encourages engagement and helps improve the product based on the user's experience. - Raise awareness of mental well-being by promoting the benefits of aromatherapy in improving emotions through marketing campaigns. EXECUTIVE SUMMARY Candles have been widely used for illumination for years and at present, it is still used not only for decorations but also as a means for giving relaxation, creating ambiance, and evoking emotions (Lin K.L., 1992). Among these, naturally scented candles stand out for their ability to transform a space through the power of fragrance, and it is considered as one of the alternative products when it comes to relaxation that has benefits by using the sense of smell (by inhalation). The inhalation of essential oils has resulted in enhancing relaxation, calmness, and wellness of the human body. This causes stress to release fused with natural scents which unlocks odor memories. (Kindersley,1995). Lumière Candles prioritizes sustainability, using eco-friendly materials and local sourcing procedures that respect the environment and benefit local communities. Our dedication to responsible consumption corresponds with worldwide sustainability goals, ensuring that every candle produced benefits both our customers and the environment. In the use of natural ingredients, oil from the citrus peel is considered and it is gathered locally and handpicked from farms in Nueva Vizcaya. Nueva Vizcaya is declared the Citrus Capital of Luzon mainly in the town of Kasibu, which has an area of approximately 318.8 square kilometers with 529 hectares of land which is dedicated to citrus cultivation (Inigo, 2022). Citrus fruits have a potentially beneficial effect on mood through olfactory stimulation. Besides, this scent attracts attention and can have the effect of aromatherapy to influence the condition of a higher emotional level. Spending some time around citrus scents will help to brighten the mood of the room everyone and decrease feelings of anxiety. Usually, citrus fragrance is linked with the image of youth, activity, and joy. (Hocayen et al.,2019) As demand for coffee grows, the province of Nueva Vizcaya has paved its way in growing coffee which started in 2012. In 2019, 40,000 crops of coffee were cultivated. (Gallibu,2019). Different coffee species such as Arabica, Robusta, and Liberica – commonly known as kapeng barako, were able to be produced and cultivated by coffee farmers in the province (Mayuga, 2021). Tiblac Farmers Agriculture Cooperative is a cooperative that promotes sustainable agricultural practices. Ambaguio Kapi is one of the thriving coffee brands in the Cagayan Valley Region. Its coffee beans are cultivated in Ambaguio. The residents in Ambaguio rely on coffee farming as a primary source of livelihood. Ambaguio, Nueva Vizcaya is known for its fertile soil and ideal climate making it a great place to grow coffee. Ambaguio Kapi is made from high-quality Robusta coffee beans that are known for their strong flavor and higher caffeine content Arabica beans are renowned for their delicate, fruity, and flowery flavors, which provide a relaxing and refreshing ambiance (Kindersley, 1995). Robusta beans, on the other hand, have a strong, nutty perfume that awakens and energizes the senses, similar to the stimulating scent of citrus fruits (Lin, 1992). Both varieties of coffee beans provide more than simply flavor; their fragrant properties enhance well-being and create a welcoming environment. The aroma of coffee can stimulate the senses and increase concentration and elevate mood. This activates parts of the brain associated with memory retrieval and processing, which may be related to the familiarity and comfort created by the scent. Inhaling the aroma of coffee can be used as a non-harmful way to improve mental performance and mood. This can be a useful application for work environments seeking to improve productivity to academic environments where memory retention is important. (Hawiset, 2019). Thermal analysis of bamboo shows that the heat temperature can reach 341⁰C. Philippine bamboo as a green composite material has quality thermal and mechanical properties. (Amatosa et al., 2019) Bamboo contains 10-12% of Silica and it is recognized for its thermal properties that make bamboo withstand high temperatures and resist combustion. Using bamboo as a container for scented candles is an environmentally friendly alternative to plastic and other non-biodegradable materials. A sophisticated lifestyle is filled with stress and mental health problems affecting every fourth person. Our candles bring in a welcoming and serene type of environment while the burning of the candles also assists in the healing process through the breath of the essential oil. In this way, by getting access to scent-associated memories, we introduce a multisensory experience that relieves anxiety and helps to enhance people’s well-being. Lumière Candles wants to transform the way people perceive the concept of relaxation and peace based on aromas. Candles have always been appreciated for their ability to offer light and heat, and we take it further and use natural healable components. In our product list, we have hand-crafted candles, and the materials used in making them are indigenous and their purpose is to enhance mental health by aroma. The use of natural scents like citrus and coffee makes Lumière Candles give out a more enhanced scent than ordinary scented candles with enhanced benefits such as being environmentally friendly. Thanks to responding to the needs and values of clients, focusing on health, sustainability, and quality, it is possible to create natural-scented candles that will not only suit the clients but also create a positive impact on the external environment. Our target audience comprises business owners who need a better understanding of their customers, families to provide a serene atmosphere, students or office employees to focus on their studies or jobs, and mental health enthusiasts. Lumière Candles aims to establish itself as a brand in the health and home fragrances market through a sound marketing plan with a focus on quality. Some of the objectives that we wish to achieve on this journey are to stimulate the renewal of products, ensure quality and safety standards, and listen to our customers through feedback-posing mechanisms. Lumière Candles is more than a product, it is a responsibility to elevate ordinary living, celebrate heritage, and support the world we live in. MARKETING STRATEGIES PRODUCT About Lumière Candles. Lumière Candles is proud to present a range of handmade scented candles that will enhance the environment and your mood. Our candles are made from natural products including indigenous materials and use essential oils that are locally available in Nueva Vizcaya, then the candle promotes a natural, eco-friendly burn. All the candles are produced with so much care to ensure they give beautiful aromas but also health benefits that will enable the user to relax and have a clear mind. Our focus with the scents is on the ability of the scent to make people feel something and – in a way – create a feel that those in a mood to relax after a hard day at work or increase awareness for those in practice for meditation. Benefits of Coffee Scent 1. It Can Improve Alertness- The aroma of coffee has been shown to stimulate and renew brain function while also improving focus. 2. Coffee fragrance can improve mood Adding the scent of coffee to your daily routine can be a natural and effective approach to increasing productivity. This can boost your mood and general emotional well-being. In addition, mixing the scent of coffee with a little meditation or breathing exercise will help clear your mind and help your attention and energy levels even more. 3. It relieves stress The chemical compounds in the beans can promote the release of neurotransmitters (chemical transmitters) that regulate mood and reduce tension and anxiety. Coffee scent can provide a comfortable atmosphere that is good for enjoyment and rest. Being part of a good inhalation, particularly of coffee scent in our daily routine, such as burning or lighting a candle with a coffee scent, can be a helpful method to improve the mood and lessen tension and anxiety. 4. Good for Memory Enhancement Researchers already proved that coffee smells good for memory recall and brain health. It is beneficial to have a pleasant scent during major tasks or study sessions since it aids in memory stimulation and improves thinking and cognitive performance. This is very helpful for those who are constantly exhausted/tired and sleepy. 5. Warm Ambiance Since coffee scent may produce a cozy, welcoming ambiance, it's perfect to utilize in our desired spaces like dream homes, cafés, restaurants, etc. Benefits of Citrus Extract Scent 1. Uplifting and Energizing Citrus scents, such as lemon and orange, are known for their refreshing and reviving properties. Also, it is believed to be more refreshing and believed to help with tension, headaches, and tiredness. 2. Ability to enhance mood The savory aroma of citrus connects with feelings of happiness and positivity because it provides a setting to surround you with good feelings and can provide a real sense of comfort or refreshment. 3. Contains Cleansing Properties Citrus scents also have purifying qualities, like where they can help create a fresh environment and clean atmosphere. They also help brighten any space with these sparkly, refreshing citrus scents. Ideally for kitchens and living spaces. 4. It Improves Focus: It enhances concentration and mental clarity or improves understanding and intelligence, making them useful for study or work environments. A Japanese study found that the smell of citrus helped to remove emotional stress and boost participants’ moods for up to 30 minutes. 5. It also provides aromatherapy benefits Citrus odors can give a sense of balance, comfort, and well-being because most people like the smell of citrus because it makes them think of cleanliness. You don’t have to use dangerous aerosols or candles to make your home, car, or office smell clean and fresh. Researchers have found that citrus immune function in depressed/sad individuals and that citrus scents can help reduce anxiety PLACE Lumière Candles has no storefront or physical store, but the production is held at Bayombong, Nueva Vizcaya. The product shall be distributed to the following markets: Nearby establishments Solano public market/retail stores SMU Coop PRICE Pricing strategies in this industry are best served with Competitive pricing strategies. This is done tactfully by choosing the price levels for the goods based on market competitor's prices. They are a cut above the rest since they are made of natural substances, are culturally sensitive, well-designed and made, and are sociable. This price strategy considers the costs, the market needs, and the specific value of Lumière candles to the market and thus strategically places Lumière candles very well. PROMOTION Lumiere Candles will use a thorough promotional campaign to promote its key values, which include eco-friendly materials, artisanal handcrafted, and aromatherapeutic advantages using technological promotions. Digital Marketing Creating a website and using social media platforms such as Instagram, Facebook, and TikTok, showcases the beauty and calm that our candles will bring to any setting. PEOPLE 1. Target Audience Business Owners: Coffee shop owners, managers of popular fine dining restaurants, and anybody seeking for products that make the customer feel comfortable. Households and Families: Wanting to make could comfort in their homes by applying aromatherapy. Students and Office Workers: Which product would be fascinating for people that want a tool to enhance concentration and decrease stress during studying or working. Mental Health Advocates: Advocating and supporting the emotional and mental health uses of aromatherapy. 2. Suppliers Local Communities: In this way, Lumière Candles cooperates with companies from the region to acquire natural and eco-friendly materials. Some of them are somehow involved in contributing raw materials such as coffee beans, citrus and bamboo while focusing on ensuring that they exercise responsible sourcing and be socially responsible to local producer. 3. Customers and Distributors Retail Stores: Other nearby stores and public markets in Solano are existing dealers and partner of Lumière Candles that helps bring its output to common consumers. End Consumers: People who are interested in natural and environmentally friendly products that include items to support health and wellbeing together with scents. These various customers appreciate resources that are environmental and culturally friendly and those that promote a healthy mind. PROCESS Lumière Candles ensures to produce quality products that meet the customer’s expectations. Thus, the process is duly followed to maintain its quality and to prolong its life span. Input Gathering raw materials such as: Soy Wax, Citrus peels, Olive Oil, Coarse Ground Coffee, wooden wicks, Bamboo jars, Parchment papers, Drawstring Linen Pouches. Tools and equipment: Thermometer, melting pots and wick holders. Throughput 1. Candle Making: Measure soy wax, essential oils, and other ingredients. Melt the soy wax using a pot, turn on the heat and put it into the lowest setting. Stir slowly until melted and constantly check the temperature until it reaches 80 to 90 degrees celsius using a digital thermometer. When it reaches the desired temperature, turn off the heat and allow it to cool down until it reaches 70 degrees celsius. Add the measured essential oils (citrus/coffee) gradually while stirring it slowly. Pour the melted wax slowly into the bamboo containers with wooden wicks supported by the holders to prevent it from moving. Let the candles cool and solidify at room temperature. Once fully set, trim the wooden wicks about ¼ inch above the wax surface. 2. Essential oil extraction: Wash and pat dry the citrus fruit with a clean paper towel. Use a grater to make a citrus zest Add 1-2 tablespoons of citrus zest and ½ cup of olive oil into a jar respectively. Store it at room temperature for five days. Strain it and put it in a jar. Set aside the strained citrus zest for it to be used afterwards. 3. Labeling and Packaging: Apply branded stickers on the packaging. Wrap it in parchment paper. Place candles in eco-friendly burlap pouches. Use twine for decorative tying. Output Each candle is thoroughly inspected to ensure quality and avoid imperfections such as: uneven surfaces, air bubbles, off-centered wicks and mislabeled scents. PACKAGING Primary: Bamboo used as the molder and jar of the candle makes it lightweight and easy to handle without any risk of breaking. It also gives the overall look of the product a warm appeal and aesthetic. Bamboo is also heat resistant which withstands the heat from the candle preventing it from breaking or warping. Secondary: Choosing parchment paper as the base cover helps create a clean- looking packaging design that allows a brand focused on natural materials. Moreover, it will encourage environmental conservation through the discouragement of the use of plastic products and encouraging biodegradable packaging. Tertiary: The use of a drawstring plain linen pouch that makes it sustainable and a replacement to wasteful plastic. PHYSICAL EVIDENCE Lumière Candles are intended for making people relaxed, reducing stress and anxiety that contributes to their well-being. The eco-friendly and reusable materials we used showcases how dedicated we are to sustainability. In every candle that is finished, its bamboo jar can be repurposed. See the photos below for reference. MARKETING BUDGET MARKETING ESTIMATED COST Promotional materials (flyers, posters) 500.00.00 Events and promotion 1,000.00 Digital advertising (Social Media ads) FREE Website 300.00 Product packaging/labeling 60.00 TOTAL MARKETING BUDGET P1,860.00 TOTAL ANNUAL MARKETING BUDGET P22,320.00 Estimated annual marketing budget: P22,320.00. The distribution is modified according to the quantity of candles manufactured and the level of promotional activity, which enables us to maximize spending to successfully meet our monthly marketing goals. The monthly marketing budget acts as a strategic plan for distributing funds to different marketing initiatives that are meant to increase sales of our scented candle business. MARKETING ANALYSIS MACROENVIRONMENT POLITICAL FACTORS The use of candles also raises some issues concerning compliance with a variety of governmental laws concerning health, safety, and environmentally friendlier sources of lighting as our candles are lit indoors. An overview of fire safety and indoor air quality statutes is also critical to compliance. For instance, there are usually provisions for subsidies or grants for small businesses that adopt policies toward sustainable management—an area we excel in. These are some of the areas we should consider cutting costs, particularly regarding the procurement of natural ingredients in product formulation and biodegradable packaging. As we expand with possibly increasing the number of employees or production, it becomes very important to respect the Fair Labor Act. It is not only effective for regulatory issues but also for maintaining the ethical structure of the company. ECONOMIC FACTORS Candles are largely considered luxury or minor necessity products, which means that we need to consider trends that will influence the customers’ ability to spend. These purchases may be made during periods of plenty but when the economic downturn comes, then these purchases will be among the first to go. However, in a stable or a growing economy area such as ours which deals in wellness products gains a lot. We can manage risks by marketing our candles as necessities that are in the healthcare segment and not just as items of luxury. In terms of market growth, it is good news for us since the markets in wellness and aromatherapy are growing. Connecting it to these trends means targeting a broader audience that cares about health, leisure, and general well-being. SOCIAL FACTORS Mental health is currently of more concern compared to the earlier years. Most of our candles are for relaxation and aromatherapy, positioning them in this new focus on wellness. Focusing on how our candles help individuals to achieve a state of mindfulness and reduce stress in a space we can reach out to this consumer niche. As we incorporate various indigenous products such as coffee and citrus, we have an added advantage to penetrate a market that is conscious of sustainable environmental products. We need to emphasize that our materials come from nature and local products, specifically here in Nueva Vizcaya as it is an asset for buyers who prefer to use products that come from responsible sources and are aware of the cultural backgrounds of the materials used. TECHNOLOGICAL FACTORS One of the biggest benefits that we have is the growth of e-commerce. This means that we can use e-commerce as a way of reaching our clientele more than using the traditional manner of selling since the clients are always online. As for social networks, Instagram, Facebook, Website and TikTok can be used to present our products as appealing images; In getting closer to the customers, using their contact information as our lists or subscription, we can try email marketing. Some of the technologies mentioned could potentially decrease the cost of the product while at the same time increasing possible uniformity and volume. ENVIRONMENT FACTORS People are paying more attention to the environment, and we think this is a great opportunity. This means that by incorporating natural ingredients and coming up with environmentally friendly packaging we can be able to align our brand closely with those values held by consumers in society. Having reusable packaging or recyclable material that we can use will improve our raw appearance. Global warming may increase the costs of some of the raw materials that we source from agricultural areas. To achieve this, we must ensure that the company has a diverse supply chain and, we must think of sourcing for more reliable raw materials in this climate. People love it when companies are more environmentally conscious. In the same vein, we can appeal to customers who may come looking for candles by providing them with environment-friendly candle jars and reusable packaging. LEGAL FACTORS All the candles we produce must conform to the specified health and safety standards. This includes giving all ingredients correct names, especially those ingredients that are valuable or which can cause allergies or skin irritations to preserve indoor air quality regulation. That is why correct labeling is an essential criterion, preventing both legal risks and compromising trust with the client. As we expand, we would like to safeguard our brand and any products that we will be manufacturing or selling. In the context of legal requirements, it is advisable to register our brand name, slogan, and any candle fragrances and contents that are unique to us. This serves to protect us from imitators who might come into the market and start offering similar products to us. If our idea is to go international then we will have to deal with different trade laws, tariffs, and regulation systems. We think each market has its own specific rules and norms that relate to safety, and which measures we have to take to prevent harm to the environment. Table 1: The analysis of the PESTLE model for Nueva Vizcaya also indicated potential risks and opportunities available for Lumière Candles. Thus, reminiscence to local cultures, people’s involvement and focus on environmentally friendly measures. PESTLE FACTORS ANALYSIS POLITICAL -The provincial government may have some policies that encourage the local companies particularly those in sustainability and indigenous material. An important and recommended step is to reach out to the local government units as either, a partner or a grant-seeking entity. - Current operations can enhance market and supplier accessibility affecting our; Distribution and transportation plans. ECONOMIC -The income levels found in the province will assist in determining the viability of the market in this area. It would be advisable to focus on the plans concerning the higher-income consumers in the urban regions or zones that attract tourists. -An increase in the trends in wellness means that more consumers may be willing to spend money on relaxation products such as aromatherapy candles hence creating room for growth of the industry. SOCIAL -Nueva Vizcaya has a strong native culture, we can utilize the culture by placing local content on our products. It ensures recognition of culture and sells to consumers interested in indigenous resources. -An increasing number of people care about their mental health and would buy our candles as a tool for relaxing and calming down. It is especially important for the trend since the population is in search of self-care items. -Proactivity concerning the local population and its presentation of our business as culturally and economically supportive to the locals can improve the brand image of our business and eventually induce customer loyalty. TECHNOLOGICAL - The trend of buying products online in the Philippines suggests that it can help in marketing the products to clients outside Nueva Vizcaya. Creating a friendly website and utilizing social media marketing tools will also be crucial among them. - Advertising on social media and in particular on outlets like Facebook and Instagram can give the company more public exposure and make our products easily visible to customers, in a market that is highly sensitive to graphics and images. - Increasing the capacities of production for contemporary types of candle technology can increase our productivity and meet the growing population's desire effectively. ENVIRONMENTAL -Its natural resources are diverse therefore the availability of raw materials in the province is an added advantage when it comes to addressing sustainable material sourcing. We must incorporate locally available organically grown produce to satisfy the growing circuitous consumer green culture. -Knowledge of climate on sourcing raw materials is important. This means that managing supply chain risks arising from climate change impacts must be undertaken with the knowledge that supply chains are likely to be disrupted. -With the rising customer consciousness towards green products, it means that we should ensure that we use environmentally friendly packaging and manufacturing methods. LEGAL -Getting the necessary business permits, rules of the environment, and health are the key issues of doing business in Nueva Vizcaya. That is why it is important to know the laws and rules for specific locales which may affect the business. -To stay clear of the legal trouble and gain the trust of our customers we have to follow laws of product safety and product labeling. -Preserving our brand through trademarks will be essential as we work in creating enclosed and new products and moving in the market. MICROENVIRONMENT CUSTOMERS Lumière Candles mainly targets individuals and businesses that are into environmentally friendly products. The customer base includes business owners such as coffee shops, fine dining restaurant owners, households, students, office workers, gift shoppers, and mental health advocates. Each customer has different needs–businesses aim at providing the right ambiance and improving customer experience, while households, individuals and workers seek relaxation and stress relief through aromatherapy. It is therefore important for us to understand the preferences, behavior, and emotions of our customers to ensure quality expectations and brand loyalty. SUPPLIERS Suppliers form a valuable part for Lumière Candles. We attempt to make use of local resources which are environmentally sustainable such as Tiblac Farmers Agricultural Cooperative, to source natural ingredients like Ambaguio Kapi, as well as local farmers who harvest citrus as Nueva Vizcaya is a major producer of citrus crops in the country. We seek to build strong relationships with these suppliers to ensure consistent quality of raw materials, support local economies, and reinforce Lumière Candles commitment to responsible consumption and production. COMPETITORS The market of scented candles is highly competitive due to several brands under commercial production that are also dedicated towards aromatherapy and well-being. The use of indigenous products, natural materials and strong emphasis on sustainability keeps us away from our competitors. However, competitors, both local and international, may offer lower-price alternatives or products with unique fragrances and packaging. Monitoring and understanding the product innovations, pricing strategies and marketing strategies are important aspects to keep our product ahead from its competitors. By continuously improving and carrying its unique features–Lumière Candles can establish a distinctive market presence. MARKETING INTERMEDIARIES Marketing intermediaries are key to distributing Lumière Candles to its target customers–which includes retail stores, online platforms, and local markets. forming partnerships locally or outside of the province will help Lumière Candles enter physical stores. In addition, having a presence online via e-commerce platforms will allow us to expand our audiences, including people who prefer to shop online. THE PUBLIC The public plays a key role in shaping the brand image of Lumière Candles. By engaging with communities, supporting local suppliers, and promoting mental health, Lumière Candles strengthens its connection with the public. Feedback from customers and mental health organizations can also guide product development, ensuring the brand stays aligned with its values and meets market needs. SWOT ANALYSIS STRENGTH Lumiere candles bring something special to the table with our coffee and citrus scents. Whether you want the cozy, comforting aroma of coffee or the fresh, zesty energy of citrus, we offer fragrances that suit different moods and tastes. The name Lumeire naturally feels elegant and refined, making our candles a perfect choice for anyone looking to add a little luxury to their home. We’re proud to use natural, eco-friendly ingredients like soy and beeswax, so our candles burn cleanly without any nasty chemicals. It means people can enjoy them while feeling good about their health and their impact on the environment. Each Lumeire candle isn’t just about looking or smelling good—they’re designed to create a relaxing, feel-good atmosphere, helping people unwind and feel great in their space. WEAKNESSES Right now, we only offer two scents—coffee and citrus—which, while unique, might not be everyone’s cup of tea. We realize some people might be looking for something different. The candle world is competitive, with so many brands already out there offering a lot of variety. It’s tough to stand out in such a crowded market, even with our unique scents. Because we’ve positioned Lumiere as a luxury brand, some people might see our candles as a bit out of reach or only for high-end buyers, which could limit how many people we appeal to at first. OPPORTUNITIES Scented candles are always a hit as gifts, especially around the holidays— think Christmas, Valentine’s Day, Mother’s Day. Lumeire can tap into this by offering beautiful packaging that makes our candles an easy, thoughtful gift. Our coffee-scented candles are a great match for the coffee culture that so many people love. We could team up with local coffee shops or cafes, giving people the chance to bring that cozy café vibe into their homes with a candle that captures the same comforting atmosphere. There’s a growing trend where home fragrances also serve as decor. We can design our candles in stylish containers that blend beautifully into people’s homes, so they don’t just add a lovely scent but also become part of the room’s overall look—a scent and a statement piece. THREATS The candle industry is packed with competitors, and it’s easy for customers to get lost in all the choices out there. Standing out can be a real challenge. Economic downturns can hit luxury products hard. If times get tough, people might cut back on things like premium candles and focus on the basics instead, which could affect our sales. FINANCIAL PLAN Financial Objectives: ○ Achieve a sales target of P24,000 in the first year, with a goal of increasing by 10% by Year 2 and 10% by Year 3. ○ The selling price of the candle is P200. ○ There are 10 candles produced every month, making it 120 every year. SOURCE OF FUNDING FINANCIAL SOURCE AMOUNT MEMBERS CONTRIBUTION P333.00 START- UP COST PRE-OPERATING CASH FLOW CASH RECEIPTS: CASH INVESTMENTS MEMBERS CONTRIBUTION P333.00 TOTAL CASH RECEIPTS : P3,000.00 CASH DISBURSEMENTS PRE-OPERATING EXPENSES: SOY WAX FLAKES 1KG P250.00 P250.00 STRAND SOY CANDLE 20PCS P5.00 P100.00 COTTON WICK DRAWSTRING BURLAP CREAM 7 PCS 15x20 CM P22.00 P154.00 LINEN POUCH TWINE STRING COTTON 1PC 1M P30.00 P30.00 CORDS ROPE WAX PAPER 100PCS 26X36 P2.00 P200.00 FOOD LIQUID DIGITAL 1PC P80.00 P80.00 THERMOMETER CANDLE WOODEN WICKS 10PCS P8.00 P80.00 CANDLE WICK LIFT TAB 2PCS P15.00 P30.00 STICKER (WICK HOLDER) ALUMINUM TEALIGHT 10PCS P2.00 P20.00 CANDLE CONTAINERS COARSE GRIND COFFEE 200 GRAMS P150.00 P150.00 CITRUS 1KG P100.00 P100.00 OLIVE OIL 1 CUP P150.00 P150.00 BAMBOO 5PCS P 50.00 PRINTED STICKER 100PCS P3.00 TOTAL CASH DISBURSEMENTS: P1,649.00 NET OPERATING CASH BALANCE: P1,351.00 PROFIT OF SALES: P35.00 PRICE PER CANDLE: P164.9 + P35.00 = 199.9 ≈ P200.00 PRODUCTION COST (per YEAR 1 YEAR 2 YEAR 3 month) DIRECT MATERIALS SOY WAX 500.00 500.00 1,000.00 1,500.00 COFFEE 300.00 300.00 600.00 900.00 CITRUS 200.00 200.00 400.00 600.00 OLIVE OIL 300.00 300.00 600.00 900.00 BAMBOO 50.00 50.00 100.00 150.00 TOTAL DIRECT 1,350.00 2,700.00 5,400.00 MATERIALS DIRECT LABOR SALARIES AND WAGES 0 0 0 0 TOTAL DIRECT LABOR 0 MANUFACTURING OVERHEAD Indirect materials 500.00 1,000.00 1,500.00 Others: Utilities expenses 500.00 1,000.00 1,500.00 Depreciation expenses 150.00 300.00 350.00 Total manufacturing 1,150.00 1,300.00 3,350.00 overhead Total production cost per 2,500.00 4,000.00 8,750.00 month Divided by: total units 200 175 150 produced per cropping Product cost per unit 43.75 22.86 58.33 PROJECTED ANNUAL PRODUCTION Year Units of Production Annual Units Cost per Annual production Frequency of Unit Production per Year Production Cost per month Year 1 10 12 120 200 P24,000.00 Year 2 20 12 240 175 P42,000.00 Year 3 40 12 480 150 P72,000.00 PROJECTED INCOME STATEMENT PER YEAR YEAR 1 YEAR 2 YEAR 3 Sales 24,000 42,000 72,000 Less Cost of Sales 14,400 25,200 43,200 Gross Profit P9,600.00 P16,800.00 P28,800.00 Less: Operating Expenses 35,000 35,000 35,000 Transportation Expenses 10,000 10,000 10,000 Advertising Expenses 5,000.00 5,000.00 5,000.00 Total Operating Expenses 50,000 50,000 50,000 NET INCOME P59,600.00 P66,800.00 P78,800.00 REFERENCE LINK: Fung, T. 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