Huggables. by Sherwin A. Marasigan, Jeneva Kaye N. Mercado and Karren P. Ronsario.

Enterprise Development Project (BSBM--Marketing Management) Cavite State University

Includes bibliographical references.

College of Economics, Management, and Development Studies (CEMDS)

MARASIGAN, SHERWIN A., MERCADO, JENEVA KAYE N., and RONSAIRO,
KARREN P., HUGGABLES. Enterprise Development Project. Bachelor of Science in
Business Management, major in Marketing. Cavite State University, Indang, Cavite. April
2013. Adviser: Prof. Maria Corazon A. Buena.
The project intended to provide the students the opportunity to apply their knowledge and
skills learned from the classrooms to actual business operations. The business aimed to
describe the practices followed in production and marketing of pillows. The production of pillows
starts from measuring, then cutting the cloth, sewing the sides of the pillow case, filling of fiber
and fmally, locking the part of the cloth where the fiber was inserted. The business was
conducted for three months, from November 28, 2012 to March 04, 2013. It was engaged in
producing different sizes of pillows. Business transactions such as purchasing, production, sales
and inventories were monitored from the start of the business until the end of the operation. The
entrepreneurs offered standard and customized sizes of pillows. Though the pillows were big,
still they were light to carry. The pillows are washable and easy to dry. The pillows that were
produced using plain cloth can be personalized by printing names, cartoon characters, or any
design that the customer want on the pillows. Prices of the products depend on the size and raw
materials that were used in producing the pillows. Cost based pricing was used wherein 61 to
133 percent mark-up was added. Competition-based pricing strategy was also adapted by the
business. In this strategy, prices were set based largely on the competitor's prices.
The cost per unit ranges from P19.26, as the lowest cost of production to P227.62, as
the highest cost of production. The entrepreneurs used promotional tools such as brochure,
leaflets and tarpaulin to reach larger number of customers. Tarpaulin was displayed in Brgy.
Patutong Malaki South, Tagaytay City where the production area was located. The place of
distribution of the pillows includes Tagaytay City, Indang, Mendez, Alfonso and Trece Martirez
City. The customers of HUGGABLES consist of friends, relatives and residents of selected
towns in Cavite, students, faculty, employees and staff of Cavite State University. The highest
production was achieved during the first month of operation wherein the production cost P13,
065. 34, while P12, 262.99 was the cost during the second month. The lowest cost was
obtained during the third month amounted to P4, 985.67.
A total cost of production amounted to P30, 314.00 was achieved in the entire operation.
The enterprise generated a total of P63, 883.85 worth of net sales. The enterprise earned a total
net income amounting to P20, 279.50 for the whole operation of the business. The common
problems encountered in the operation were: the difficulties in sewing bolsters and heart shape
pillows; filling of fiber and then locking the part of the cloth where the fiber was filled; giving
discounts to the customers; and looking for customers. However, solutions were made to
overcome these problems.

Submitted copy to the University Library. 04/24/2014 EDP-294