Company

Profile:
Graphics and Printing Solution

The TGPS company develops graphics and provides several graphic

design services includes printing services. The future performance of the

business depends on the successful and timely development, introduction

and market acceptance of new and enhanced products. The life cycles of

the products and services are difficult to predict because the market for the

products is new and emerging, and is characterized by rapid technological

change, changing customer needs and evolving industry standards.

The name TGPS was adopted three years ago to represent T “Trio” the

three business partners who owns the company and GPS stands for

graphics and printing solution.The company makes its basic properties like

graphics, pictures, information, search engine, media, digital printing, large

format printing, T-shirt printing, personalized gift, plastic printing and in

house finishing options available without charge to users and generates

revenue primarily. Additional advertising on the platform is sold through the

company's internal advertising sales force and third-party agents.

The company's performance is substantially dependent on the efforts and

performance of its senior management. Accept online orders and offline

and can pay over the counter, purchase requests, Credit card and check.
Marketing
Plan:

Industry Trends

The graphic and printing industry involves the production and distribution

of graphic and printing services and products. Production involves the

development and physical production of pictures, posters and additional

media and digital products. Distribution involves the domestic and

international distribution. The major producers have leading industry

positions based on the number of products that they release. The major

producers are generally part of large diversified corporations with

production and distribution operations and established relationships with

creative talent and others involved in the industry.

The growth of the Internet, the proliferation of advanced digital media and

the advancement of communications infrastructure have fundamentally

changed the way media products can be distributed and shared.

According to several research institutes, in 2015, there were over 3.2

billion online households worldwide.

Industry sources report that digital graphic design and printing products

increased to 30% of the total graphic market during the first half of 2014,

and project that the digital picture segment will represent approximately

25% of all picture sales in 2015.

 Product/Service

The company intends to become a leading supplier of graphic design and printing

services as well as media and entertainment products over the internet or store. The

company generates revenues primarily through selling products and services. The

company plans to develop more than 400 graphic and printing products per month. It will

also buy the exclusive rights for more than 800 graphic and printing products.

The internet and mobile technology now make it economically feasible for graphic stores

to make virtually an unlimited number of high-quality products available to consumers for

purchase at any time. Sophisticated online search tools permit consumers to identify and

purchase many previously inaccessible graphic products.

Images used for printing need to be relatively simple. Staff in shop will have the capability

to produce a digitized sample of the approved image and even a physical sample for final

approval by the customer to ensure expectations are met. Any product the customer can

think of will be print in a best way. Custom images can directly print onto any type of

materials, printed invitations or programs, personal monogramming and personalization

of any item will be available to the customer.

 Target Market

Graphic design services can be targeted to a wide variety of clients such as marketing

managers, business owners, CEOs, PR departments and students, just about anyone

who uses visual media to communicate, persuade, or sell to others. Some of the largest

buyers of design services are big corporations with marketing departments who create

many programs and have substantial budgets. In these types of companies, you often

deal with a marketing professional of some sort; for example, the VP of marketing or a

marketing manager. In fact, many large companies may have more than one division with

more than one marketing manager. It’s like having many clients in one location. These

businesses can represent a one-stop shop for your business. As a result, some designers

never have to market or advertise to individuals outside of one company. Many midsized

businesses also have marketing managers who use design services. These individuals

often don’t have the internal staff to help support their departments, so they regularly use

the services of outside designers. Depending on the size and structure of the company

you service, you may never deal with a marketing person. Instead, you might deal with

the actual owner, a business partner, or even the VP of sales. It all depends on the type

of company it is and the business structure they have. Most often you will be dealing with

someone who is directly responsible for business development.

This only covers those who use design to advertise and market. There are many other

buyers of design services who use graphic design as part of their final product; for

example, book publishing companies, magazine publishers, and manufacturers of

products are also great potential customers for your graphic design business.
 Competitive Analysis

The company currently faces measurable competition from other media production and

internet distribution companies. The local industry is comprised of a few large, well-known

companies, several mid-sized companies like this company, and many relatively small

independent companies. Several new companies have emerged producing similar

services. Competition might come from the use of existing technologies and from the

development of new services. To further examine the competitive environment, it is

necessary to define the players in that environment.

Currently, the closest graphic design and printing press is two kilometers away from our

intended location in Salazar St. Trio Graphic and Printing Solution will give a better

service, at a reasonable price.

However, there are four printing press, near the area. But they didn’t offer a graphic

design service, but we still consider them as a competitor because they give a lower price

in printing.

The company believes that the products and services are not easily substitutable with

the products of the competitors due to the level of technology, but nonetheless the

company must constantly maintain the technology developments.

Marketing Mix:

Promotion

This were the one of the most effective strategies for building up the

business by posting in social media like facebook, twitter, Instagram.

Giveaways to those person that has a huge influence in the social media

industry without asking them to buy it instead just promote to their own

social media accounts. Sponsorship of related events. Give them a

business card with gold or silver metallic card signifying elegance,

quality and expensive service. This will also include sending them brief

information about the new business with any special offers and

discounts prior to the opening of the store.

Place

The business is located at Salazar St. main road, in an inner-city suburb

making it accessible for customers who may visit directly from the city. It

is a company building and working space, and the overall ambiance of

the building reflects the small design and multi-media studio image. The

company building located on first floor while the studio located at the

second floor and has an advantage of being able to live/ work from home.

Has good natural light and the exit is marked. Stairs leading to premises

have handrails. There are fire hoses and extinguishers centrally located

on the premises. The Distribution/sales channels are direct to customers

or Internet.
Distribution/sales can be conducted by customers will pick up from the store or hand

delivered to place of residence.

3D models and Logos will be sent electronically over internet with hardcopy sent by mail

or hand delivered. Websites will be uploaded to internet via the computer and maintained

onsite. Invitations will be printed both onsite and offsite depending on quality.

Price

The company will lean on 30% discount pricing as part of product promotions, which are

generally used for increasing traffic and attracting new customers. This discounted pricing

draws attention to the product and can be used as a hook to bring in customers who will

potentially purchase other items. During Seasonal changes and Occasions companies

utilize this strategy.

Psychological pricing: instead of 200 php each printing of t-shirt its only a 199 php only

cause marketers use psychological pricing that encourages consumer to buy products

based on emotions rather than on common-sense logic. We're dropping our price to

compete with competitors who've seen our success and entered the market with an

efficient price. I'd like to get graphics and printing solution into the hands of new buyers

who can then see the difference between Trio Company and our imitators. This price

won't last forever, but for a limited time I'm going to not only meet but beat the low prices

of our imitators.

Bundle pricing: every 250 items of printing service there is a 3% discount and freebies

and so on. While in graphic designing every 10 requested orders of design only there is

a 5% discount, but the printing service is exceptional to that.

 Service

Customer service is also expected to be very high. Customers want to be walked through

the selection, to make sure they make the perfect choice. Customers expecting rush jobs

are on the rise. Trio Company will have a head start on other printing machineries. Since

Trio Company is already accustomed to providing this high service level and meeting

quick tum around times, it will have a competitive advantage in this area. Customers want

lots of options, but not so many that it makes the decision difficult. Trio Company offers

many options and backs those options up by providing consultants to help the customer

find the best fit. The graphic design team also makes customization easier, with

capabilities to create designs from scratch instead of working from stock designs. We will

strive to make the customization as customer friendly and accurate as possible. There

are no stock designs used, and each product is one of a kind. Consultants and graphic

designers will work together to offer custom solutions to meet any needs expressed by

customers in their designs. Trio takes pride in its trained consultants and encourages

customers to use them as a resource. Multiple proofs in PDF format are sent through

online or they can personally go to the store and the customer can detailing any changes

that are made during the process and to confirm the final design before production

begins. This ensures that customer expectations are met.

 Operational Plan

The day to day operations of our graphics and printing solution business include a focus

on providing the best costumer service as well as pleasant atmosphere.

We understand that the purpose of a graphic and printing solution business is to allow

those in our community to have easy and better life, and we remain focused on using our

machineries and latest technology to sustain a variety of designs to our new and regular

client. To this end, a big part of our operations plan is to continue to attract customers in

local and national talent of designing.

We have found that 3d designs is a huge selling point in the graphics and printing

business, and we intend to use drawing power of popular local and national graphics

designers to bring new customers to our doors. We have, for instance, established

several mutually beneficial relationships between customers and our company.

We feel that these relationships are mutually beneficial, providing new funds for the latest

and fastest machines at the same time providing our customers with the best service at

a price they can afford.

Special contests are another big part our operations plan, and we intend to fully exploit

this strategy in the future.

Management
team/Human
Graphics and printing solution business requires a very high level
resources
of designing, analytical ability and expertise, which means that it

will not be easily leverageable in the common graphics and

printing company mode in which partners run the business and

make sales, while associates fulfill. Partners will necessarily be

involved in the fulfillment of the core business proposition,

providing the expertise to the clients. The initial personnel plan is

still tentative. It should involve three partners, three graphic

designers, with good sales associates, a machine operator,

maintenance, computer programmer and a driver for delivering the

printed items to the customer. Later, after three years we will add

up some graphic designer, sales associates and machine

operators.

Owners

Manager

Graphic Computer Machine Sales

Maintenance Driver
designer Programmer Operator Associates
Financial Plan:
Financial Plan:

The Company has based its proforma financial statements on the

following:

• The Trio company will have an annual revenue growth rate of 16% per

year.

• The Owner will acquire 3,500,000 php in BPI debt funds to develop the

business.

• The loan will have a 10-year term with a 9% interest rate.

EMPLOYEE NUMBERS MONTHLY YEARLY

OF
PERSONNEL
MANAGER 1 ₱ 24,566 ₱ 294,792
GRAPHIC DESIGNER 3 ₱ 13,000 each ₱ 156,000 each
MACHINE 2 ₱ 12,500 each ₱ 150,000 each
OPERATOR
SALES ASSOCIATES 2 ₱ 7,410 each ₱ 88,920 each
MAINTENANCE 1 ₱ 15,146 ₱ 181,757
COMPUTER 1 ₱ 17,280 ₱ 217,360
PROGRAMMER
DRIVER 1 ₱ 9,000 ₱ 108,000
TOTAL WORKERS 11
Total: ₱ 144,812 ₱ 1,747,749
 Income Statement

Particulars 2015 2016 2017

Revenue (Sales) ₱4,503,538 ₱4,553,892 ₱5,609,281
Cost of Product/service sold ₱650,354 ₱655,389 ₱760,928
Operating Income ₱3,853,184 ₱3,898,503 ₱4,848,353
Expenses
Payroll ₱1,747,749 ₱1,747,749 ₱1,747,749
General and Administrative ₱215,200 ₱216,208 ₱217,256
Marketing Expenses ₱225,176 ₱227,694 ₱280,464
Insurance Costs ₱21,987 ₱22,086 ₱22,191
Travel and Vehicle Costs ₱12,596 ₱13,356 ₱14,291
Utilities ₱221,250 ₱222,963 ₱223,711
Miscellaneous Costs ₱6,042 ₱6,647 ₱7,311
Payroll Taxes ₱322,724 ₱322,724 ₱322,724
Total Operating Cost ₱2,772,724 ₱2,779,427 ₱2,835,697
EBIT ₱1,080,460 ₱1,119,076 ₱2,012,656
Income Tax ₱226,347 ₱290,937 ₱395,100
Interest Expense ₱306,180 ₱284,571 ₱261,387
Depreciation Expenses ₱1,700 ₱1,700 ₱1,700
Net Profit ₱546,233 ₱541,868 ₱1,354,469
 Cash flow Statement

Particulars 2015 2016 2017

Cash from Operations ₱547,933 ₱543,568 ₱1,356,169
Cash from Receivables ₱0 ₱0 ₱0
Operating Cash Inflow ₱547,933 ₱543,568 ₱1,356,169
Other Cash Inflows
Equity Investment ₱500,000 ₱0 ₱0
Increased Borrowings ₱3,500,000 ₱0 ₱0
Sales of Business Assets ₱0 ₱0 ₱0
A/P Increases ₱337,902 ₱443,587 ₱550,125
Total Other Cash Inflows ₱4,337,902 ₱443,587 ₱550,125
Total Cash Inflow ₱4,585,835 ₱987,155 ₱1,906,294
Cash Outflows
Repayment of Principal ₱230,370 ₱251,104 ₱273,703
A/P Decreases ₱122,100 ₱126,420 ₱232,801
A/R Increases ₱0 ₱0 ₱0
Asset Purchases ₱457,500 ₱320,038 ₱325,783
Total Cash Outflows ₱809,970 ₱697,562 ₱832,287
Net Cash Flow ₱3,775,865 ₱289,593 ₱1,074,007
Cash Balance ₱3,775,865 ₱4,065,458 ₱5,139,465

Balance Sheet

Particulars 2015 2016 2017

Assets
Cash ₱3,775,865 ₱4,065,458 ₱5,139,465
Amortized ₱123,500 ₱123,901 ₱244,416
Development/Expansion Costs
Company Vehicle ₱945,000 ₱0 ₱0
furniture, fixtures, or other equipment ₱123,000 ₱61,015 ₱71,329
Accumulated Depreciation (₱1,700) (₱1,700) (₱1,700)
Total Assets ₱4,965,665 ₱4,248,674 ₱5,453,510
Liabilities and Equity
Accounts Payable ₱215,802 ₱317,167 ₱317,324
Long Term Liabilities ₱43,537 ₱36,467 ₱29,397
Other Liabilities ₱0 ₱0 ₱0
Total Liabilities ₱259,339 ₱353,634 ₱346,721
Net Worth ₱4,706,326 ₱3,895,040 ₱5,106,789
Total Liabilities and Equity ₱4,965,665 ₱4,248,674 ₱5,453,510
Conclusion

The company expects that the graphic and printing industry is undergoing

significant change, with the primary means of graphic distribution

transitioning from physical formats to digital formats accessed over the

internet and wireless and cable networks. This is occurring because of

the popularity and proliferation of personal computers and digital

platforms.

The company plans to become a leading publisher in the field of graphic

design and printing production. With world-class creative talent, a strong

and experienced management team and advanced graphic, picture and

media production technology and techniques, the company makes high

quality products for a broad audience. Based on the knowledge of the

industry and the announced release schedules of the competitors, the

company expects to have an excellent product portfolio.

For distribution a professional platform with the newest technology is

essential. This is the chance for new businesses with innovative ideas

and new offerings to secure a large customer basis.

Service and technology are factors that can earn a competitive edge. For

a successful operation of a graphic design production company 4 factors

are critical and central to the business strategy:

Cost management is a critical success factor for businesses in industries where margins

are low. The expected margin for one product is between

3% to 5%. The company intends to continue to devote significant resources to technology

development to introduce new products.

The company believes that acquisitions of complementary technologies may allow to

expand the product offerings. Service is very important. This will secure customer loyalty

and optimize profitability in a market that is very competitive. The expected costs for

additional services activities are between 5% to 10%. On the other hand, the expected

additional growth rates due to new services activities are between 8% and 12%.

The distribution is based on its own online platform. The number of graphic design

templates must be between 100 and 250 to meet the requirements of the customers.

Graphics and Printing Company will be successful. This business plan has concrete

target. We want customer to happy in our business. We want reader to known real in

magazines and so on.

Executive
Summary

Trio Graphics and Printing Solution seeks to offer its customers a set of

services that effectively manages their image, focusing on quality and

customization. TGPS strives to gain a competitive advantage by further

enforcing its brand image and association with top quality products.

TGPS plans to extend the product offering to include custom graphic

designs to complement 3d printing and digital printing items. These

additions will differentiate TGPS from its competitors and other print

shops which will become competitors as it strives to become a "one stop

shop" for all image management needs

The company also develops graphic design and printing products for

private and business customers. It also provides a source for legal and

free graphic products for private customers. It is possible to download

online or can visit in the shop from different categories. The pricing

policy provides every project design ordered. Profits are from

development and product sales. The revenues of the first year are

between and ₱3.5 Million to ₱4.0 Million. The goal of this start-up is

the operation of a graphic design company. The expected number of

customers is between 120,000 and 150,000. Future clients will be

supported in optimally structuring their digital marketing formation and

choosing the right strategy. The TGPS will provide people with

adjustments to long-term maintenance contracts as well as complete

service packages and campaigns, so that businesses can concentrate on their core

operational

competencies. A particular focus in this case is the further utilization of existing knowledge

in the area of screen design, online marketing, web development and different printing

solutions. Given the success to date, an existing network of independent contractors and

the thought-out strategy of the owners is to assume that TGPS will establish itself well

and grow rapidly.