Disk-O, Inc

The proponents believe that there is a market that needs a product that will keep their things inside their car neat and in order. As cassette tapes slowly phase out and CDs are flooding the market, owning and collecting CDs have been the latest craze. It is only practical and sensible to own a product that can keep the discs safe and at the same time organized. Thus, Disk-O, Inc. was established. The proponents came up with a product that will cater to the market\u27s need: a handy and practical way of keeping CDs organized, as well as important documents such as car registration, parking tickets, and the like. This product is called the Disk-Drive. The Disk-Drive is a rectangular shaped case with ten pockets. It can be attached to the sun visor of the driver or passenger seat, and being light and handy, it could be detached from its straps and be carried around. The Disk-Drive protects the sensitive surface of the CD from dust, dirt, and helps avoid scratches. It also protects the CDs from the heat of the sun. The Disk-Drive comes in different colors like black, blue, and gray. White plastic bags will be used for the packaging of the product and the brand name of the product will be printed at the front of the bag. The proponents decided that their primary market would consist of male and female students belonging to the 16-22 year age bracket who study in either one of the following schools: Assumption College, Makati St. Scholastica\u27s College, Manila De La Salle-Zobel, Alabang and St. Benedict College, Alabang. Residents from Tahanan Village will also be included in the proponents\u27 primary market. Since not all people have CD players inside their cars and since most radio components sold in the market today have built in CD players, it is most likely that they will have a CD player at home. The proponents targeted those people who are very fascinated with car accessories. Specifically speaking, teenagers who enjoy dressing up their cars and people who like to keep their car neat. The total population of the primary market is 2,540. Using a 95% confidence interval and allowance for error of 0.05, the computed sample size summed up to 334 respondents. Out of a total sample size, 317 respondents were willing to buy the product. With a 0.9491 GMAR, the true value of the product\u27s market acceptability is 0.9256 or 92.56%. The expected monthly demand for the Disk-Drive amounted to 196 and obtained a market share of 56.12%. The proponents used the cost-based pricing strategy. The proponents believe that this strategy would greatly benefit the company\u27s profit and sales because the proponents can determine their desired mark-up and at the same time set the most appropriate price that the consumers will consider reasonable and affordable. The preferred selling price of the Disk-Drive is P 250.00. The product is planned to be sold in specialty store and car accessory shops. Since students are part of the target market, the product will be sold in shops and in different schools during their fairs. The product will also be sold during Christmas bazaars. Based on the survey conducted, the target market prefers the product to be sold in the Greenhills and the Makati area. Based on the survey results, the proponents confirmed that the most effective way of advertising the product is by the use of flyers and through personal selling. Through the use of flyers, the proponents will be able to reach a larger market share and by means of personal selling, the proponents will also be able to build good customer relationships. A time and motion study was conducted by the proponents and was able to develop a highly productive manufacturing process. The average capacity per production day amounted to 22 units having a total of 110 units per month. With a monthly output of 110 units production cost per unit amounted to P 60.47. It is expected from the proponents to establish a legal corporation under the Philippine law. Disk-O, Inc. will exist for a period of ten months starting September 1998 until June 1999. With an estimated initial investment of P 16000.00, it was calculated that Disk-O, Inc. will generate retained earnings amounting to P 123388.78 at the end of the practicum period. The corporation will practice paying the proper taxes to the respective government agencies. The Disk-Drive will be supplied to its target market, thus giving the market more alternatives with a much lower price to choose from. Also, in producing the Disk-Drive, there will always be a demand for local materials, which will help local suppliers generate income from the purchases made by the company. Finally, the proponents will not only learn how to manage a business, but will also be able to develop their skill in labor and management relations by understanding how it is being a laborer and/or a manager. In conclusion, the proponents strongly believe that Disk-O, Inc., makers of the Disk-Drive, is a profitable business and highly recommends implementation of the proposed business