AGUSAN DEL SUR COLLEGE, INC.
Bayugan City, 8502 CARAGA. Philippines
Telefax (085) 231 -2150
BRACELET YARN
In Partial Fulfillment
Of the Requirements for the Degree
Bachelor of Science in Business Administration
By
ALTHEA CAHAGNAAN
CLARENCE JAY BUGHAW
CRYSTAL LEA LABRADO
KEN LLOYD BEDREJO
JESSEL ESCOBAL
JHON LEASTHER BENDEBEL
JUNLY MARK LENARES
JOVAN ORTEZ
KRISTIAN PARDILLO
MARIONITO BALATAYO
JANE ALEX SILVESTRE
NATHANIEL SANJORJO
OCTOBER 2024
BRACELET YARN
“WEAR YOUR IDEAL NAME”
Bracelet Yarn, where thoughtful craftsmanship meets personal expression. At Bracelet
Yarn, we specialize in creating custom-made bracelets crafted from high-quality cotton
and yarn. Each piece is designed to reflect individuality, offering a unique and heartfelt
way to express love and appreciation. Whether you’re looking for a meaningful gift or a
personal accessory that tells your story, Bracelet Yarn brings together comfort, style,
and sentimentality in every handcrafted bracelet. Our focus is on making every piece as
unique as the people who wear them.
Table of Contents
I. Product Plan
Product Overview
Product Name:
Product Type/Category:
Target Market:
Unique Selling Proposition (USP):
Product Description:
II. Market Research
Market Demand:
Competitive Landscape:
Target Audience:
III. Product Development
Materials and Ingredients:
Production Process:
Production Time:
IV. Costing Analysis
Fixed Costs
Variable Costs (Per Unit)
V. Pricing Strategy
Pricing Objective
Suggested Retail Price (SRP):
Provide the intended selling price of the product.
VI. Pricing Model
Cost-Plus Pricing:
Competitive Pricing:
Value-Based Pricing:
Break-even Analysis:
VII. Profitability Analysis
Cost Per Unit:
Selling Price (SRP):
Profit Margin:
Monthly/Quarterly Sales Projections:
Product Overview
Product Name:
BRACELETYARN
Product Type/Category:
ACCESSORIES
Target Market:
Our target market includes students, couples, and individuals looking for the perfect gift
for their loved ones. Whether it’s for a special occasion, a thoughtful surprise, or simply
to show appreciation, our products are designed to create meaningful connections.
Students seeking affordable yet heartfelt gifts, couples celebrating milestones, or
anyone wanting to express love and care will find something special in our collection."
Unique Selling Proposition (USP):
Our unique selling proposition is offering thoughtful, affordable gifts that make lasting
emotional connections. We specialize in personalized products that help students,
couples, and individuals express their love and appreciation in a way that’s meaningful
and memorable. By combining quality craftsmanship with heartfelt designs, we provide
a one-of-a-kind gifting experience that speaks directly to the emotions of both the giver
and the receiver.
Provide a brief description of the product, its features, and benefits.
This custom-made character bracelet is handcrafted from soft, durable cotton and yarn,
designed to be both stylish and meaningful. Each bracelet features a personalized
character, making it a unique accessory tailored to your individuality or a loved one’s
personality. The breathable materials ensure all-day comfort, while the custom design
adds a personal touch, perfect for gifting on special occasions.
Features:
Custom-made character design
Made from high-quality cotton and yarn
Lightweight and comfortable
Benefits:
Unique and personal accessory
Ideal for sensitive skin
Perfect for gifting to loved ones for any occasions
II. Market Research
Market Demand:
Custom-made accessories, particularly personalized bracelets, are gaining popularity
due to the increasing demand for unique, meaningful products. Consumers are seeking
items that reflect personal identity or serve as thoughtful gifts for loved ones. The
custom jewelry market is projected to grow steadily as people look for affordable yet
sentimental items. Additionally, trends show that eco-friendly and handcrafted products,
like those made from cotton and yarn, are particularly appealing to younger consumers
who value sustainability and personalization.
Market Size:
The global custom jewelry market is expected to reach over 40 billion by 2025, with
growth driven by the demand for individualized products and the expanding e-
commerce space. In particular, students, young couples, and gift shoppers represent a
significant portion of this market.
Competitive Landscape:
The market for custom-made jewelry is competitive, with various players offering
personalized bracelets and accessories. Key competitors include:
Pura Vida Bracelets: Known for their handcrafted designs and charitable
contributions, Pura Vida targets young, socially conscious buyers. They use
competitive pricing, ranging from ₱12 to ₱25 for bracelets.
Etsy Sellers (Handmade Bracelets): Etsy is a popular platform for custom
accessories, with thousands of independent sellers offering a wide variety of
designs. Prices vary from ₱10 to ₱30, depending on the complexity of the design
and materials used.
Alex and Ani: Specializing in personalized jewelry with spiritual and symbolic
meanings, Alex and Ani bracelets range from ₱20 to ₱50. They emphasize eco-
conscious designs and customizable elements.
Competitor Pricing Strategies:
Most competitors focus on competitive pricing and value-driven branding,
positioning their products as both affordable and meaningful. Many emphasize the
uniqueness of their products, with custom features that cater to the emotional
connection buyers seek.
Target Audience:
Demographics:
The primary target audience includes students, young adults, and couples
aged 10 up, who are looking for affordable and meaningful gift options. These
individuals are often budget-conscious but willing to spend on personalized items
that reflect their relationships or identity.
Interests:
This audience is interested in personalization, handcrafted products, eco-
friendly fashion, and items that reflect their values or emotions. They are tech-
savvy, often shopping online, and influenced by social media trends and
recommendations.
Pain Points:
o Difficulty finding affordable, personalized gifts that are both meaningful
and stylish.
o Concerns about mass-produced items lacking uniqueness or emotional
value.
o Sensitivity to sustainability and ethical production, making handcrafted,
eco-friendly products more appealing.
III. Product Development
MATERIALS:
YARN
PLASTEC BOTTLE
LIST OF ALL MATERIALS
Scissor
PRODUCTION PROCCES
Cut the plastic bottle in to 5-inch x 1-inch
Cut the yarn into 7pcs in 10 inches
Get a different color of yarn and cut it in 2 meters
Put it together to form a pattern
After a few minutes they will finish the product
PRODUCTION TIME
10-15 minutes
IV. Costing Analysis
Fixed Costs
FIXED COSTS
Cost Type Item Cost (PHP)
Rent ₱0.00
Salaries ₱350.00
Fixed Costs Utilities ₱50.00
Electricity ₱0.00
Other Overhead Costs ₱50.00
Total ₱450.00
Total Fixed Cost Per Unit (100 unit) ₱4.5
Variable Costs (Per Unit)
VARIABLE COSTS
Cost Type Item Cost (PHP)
Raw Materials ₱1.50
Labor ₱3.50
Variable Costs
Packaging ₱3.50
(Per Unit)
Shipping/Delivery ₱0.00
Other Variable Costs ₱6.00
Total ₱14.50
Variable Cost Per Unit (100 units) ₱14.50
Total Cost (Per Unit)
TOTOL COST PER UNIT
Variable Cost Per Unit (100 units) PHP 20.00
Fixed Cost Per Unit (100 units) PHP 1.90
TOTOL COST PER UNIT PHP 20.9
V. Pricing Strategy
. Pricing Strategy
1. Pricing Objective:
Our primary pricing objective is market penetration. By offering an affordable
yet high-quality custom-made product, we aim to attract a wide customer base,
especially students and individuals seeking thoughtful gifts at a reasonable price.
This strategy will help establish our brand presence in the market and encourage
repeat purchases.
2. Suggested Retail Price (SRP):
The suggested retail price for the custom-made character bracelet is ₱15 to ₱20.
This price range ensures affordability while covering material costs and the labor
involved in customization.
3. Intended Selling Price:
The intended selling price is ₱20 per bracelet, striking a balance between
affordability and profitability. This price point is competitive within the custom
accessory market, offering value for a personalized, handcrafted product.
VI. Pricing Model
Cost-Plus Pricing
1. Determine Total Cost per Unit:
o Total Cost per Unit: ₱19.00
2. Add a Markup Percentage:
o Using a 10% markup:
Selling Price = Total Cost + (Total Cost x Markup Percentage)
Selling Price = 19.90 + (19.00 x (19.00 x 0.10) = 19.00+1.90 = 20.90
o Cost-Plus Price: ₱20.90
Competitive Pricing
1. Analyze Competitor Prices:
o Competitor pricing range: ₱12 - ₱50 (average around ₱20).
o Your intended selling price is ₱20.90, which is competitive within the
market.
2. Adjust Based on Competitors:
o Given the competitive landscape, you might keep the price at ₱20.90 to
attract customers while remaining competitive.
Value-Based Pricing
1. Assess Customer Perception:
o If customers perceive your personalized bracelets as special and unique,
you could justify a higher price.
2. Set Price Based on Value:
o If the emotional value of your product resonates well with customers, you
might consider pricing it at around ₱20.00 or higher if justified.
Break-even Analysis
1. Calculate Fixed Costs:
o Total Fixed Costs: ₱4.50 (for 100 units).
2. Calculate Variable Costs:
o Variable Cost per Unit: ₱14.50.
3. Determine Selling Price.
Selling Price (using cost-plus pricing): ₱20.90
4. Break-even Point Formula:
.
Break−even Poimt =total ¿ cost ¿
selling price−variable cost per unit
4.5
Break−even Poimt =
20.90−14.5 ¿
¿
Break−even Poimt =1.4
Summary
Cost-Plus Price: ₱4.5
Competitive Price: ₱20.90
Value-Based Price: ₱20.00 (if justified)
Break-even Point: 1.4
VII. Profitability Analysis
Cost Per Unit:
Cost Type Item Cost (PHP)
Rent ₱0.00
Salaries ₱350.00
Fixed Costs Utilities ₱50.00
Insurance ₱0.00
Other Overhead Costs ₱50.00
Total
₱450.00
Fixed Cost Per Unit (100 units)
Cost Type Item Cost (PHP)
Raw Materials ₱1.50
Labor ₱3.50
Variable Costs (Per Unit) Packaging ₱0.00
Shipping/Delivery ₱3.50
Other Variable Costs ₱6.00
Total ₱14.50
Selling Price
PRICING STRATEGY
Price Mark-up Selling Price
19 10% 20.9
Profit Margin
Price PHP 19.00
Selling Price PHP 20.9
Profit Per Unit 1.9
Profit Margin 9.09%
SALES FORECAST
Month Unit Sold Selling Price Revenue
January 2700 ₱20.00 ₱54,000.00
February 3000 ₱20.00 ₱60,000.00
March 2900 ₱20.00 ₱58,000.00
April 3000 ₱20.00 ₱60,000.00
May 3000 ₱20.00 ₱60,000.00
June 3000 ₱20.00 ₱60,000.00
Total Estimated Units Sold (6 months): 17,600 units
Total Estimated Revenue (6 months): 352,000PHP
