Presented to the Marketing Department
De La Salle University - Manila
Term 3, A.Y. 2022 - 2023
In partial fulfillment
of the course
In MARKRTL K35
Markemouse Retail Plan
Submitted by:
Alecxandra Himan
Mark Laurente
Carisse Lumontad
Miguel Manila
Denise Picardal
Nehro Ranay
Louise Santos
Gelo Victoriano
Submitted to:
Prof. Mary Julie Balarbar
17 March 2024
I.
II.
Executive Summary
Value Analysis
A. Value Exploration
Lasallian Swifties, who didn’t get the opportunity to attend the official Eras Tour concert
by Taylor Swift, want to own and purchase Eras Tour merchandise for a much cheaper price.
They also look for stores that are accessible and affordable, yet provide the same quality of the
Eras Tour merch. They want to experience what it feels like to be part of the biggest tour in the
world, despite not attending it. Additionally, since the official concert only sells shirts, hats, and
sweaters they also look for different products that are associated with the Eras Tour as well to
remind them of this event. The Eras Store is a shop that offers different merchandise such as
friendship bracelets, stickers, and pins, alongside shirts, sweaters, and other Taylor-Swift-related
merchandise.
B. Value Creation
The Eras Store will bring the Eras Tour to the Swifties. The aforementioned items are to
be sold at a student-friendly price and the store will be located at the Faculty Center in the
campus. This is to make the products more accessible to the students. The store will also feature
all the eras or albums of Taylor Swift, and will also be designed after the tour’s merch truck to
give the students the feeling of attending the Eras Tour.
C. Value Delivery
The Eras Store aims to provide customers the feeling and excitement of being a Swiftie in
an event, without having to go to the concert. The store will have a comfortable atmosphere,
allowing customers to meet other Swifties and form a community. Besides the store’s purpose of
selling Taylor Swift-themed merchandise, it aims to let people celebrate their love for the music
and the artist, with a Taylor Swift-themed photobooth. It will also hold listening parties during
albums, as well as Swiftie Nights where frequent patrons and first-time customers can meet and
bond through different activities such as talks or concert watch parties. Additionally, a portion of
sales will go to college students who are taking up music as a major, which aims to also support
the local art industry.
III.
Target Market
A. Primary & Secondary Target Market
Variables
Primary Target Market
Demographic
●
●
●
Secondary Target Market
Gen Z
●
Upper-middle class
●
College students, fresh graduates, ●
Gen Y
Middle-class
Full-time income earners
●
Psychographic
●
●
●
●
●
●
●
new employees
Females
●
Males
Feminine
Stylish and passionate
Opportunist for great experiences
Love setting and/or following trends
Enjoys thrifting and second-hand
items for sustainability
Creative
and
crafty,
love
hand-crafted items
Enjoys collecting items
●
●
●
●
●
Laid-back and
Effeminate
Tech-savvy
Socially conscious
Often seeks products that aligns with
their personally lifestyle and values
Gives emphasis on convenience and
product transparency
Values individuality and does not
mostly conforms to norms to
authentically express themselves
●
●
Geographic
●
●
Urban areas
●
Spend most of their time outside ●
their house
Urban areas
Spend most of their time at home
when not at work
Behavioral
●
●
Loyalist to brands and interests
Considers company values and store
aesthetics
Prioritizes quality over price
Prefers local brands over foreign
brands
●
Concerned with the necessity,
practicality, and convenience of
purchase
Considers the value for money
Upholds brand quality most of the
time
Most are heavily influenced with
digital
channels
in
making
purchasing decisions
●
●
●
●
●
Technographic
●
●
●
Adept in social media
Content creator or avid followers of
other content creators
Mainly uses Twitter, TikTok, and
Instagram
Can
easily adapt with any
technological innovation
Has heavy reliance on digital devices
Eagerly participating in online
communities that aligns with
their personal hobbies and
interests
B. Conceptual Target Market
1: The Swiftie
2: The Supportive Buyer
Name: Ashley Ong
Age: 19
Gender: Female
Occupation: Student (De La Salle University),
Content Creator
Income: 10,000 - 20,000 PHP/month
Name: Stephen Rivera
Age: 30
Gender: Male
Occupation: Accountant
Income: 70,000 PHP/month
Background: Ashley has been a Taylor Swift fan
Background: Stephen, although has a professional
since she was a young teen. Nowadays, she is
interested in social media, fashion and beauty, and
student organizations as a hobby. Besides that, she
is also a free spirit and enjoys traveling to new
places. Her social media consumption and
engagements are heavy on TikTok and Instagram.
IV.
job as an accountant, is an adventurous person and
is a music enthusiast. He also values his family
and loved ones and often splurges on them for
their interests and hobbies. Just like most
millennials, Stephen is updated with the latest
pop-culture trends through Facebook and Twitter
posts.
Branding and Positioning Statement
The brand for the Eras Store will be similar to the branding of Taylor Swift’s Eras Tour.
This would mean similar iconography, typography, colors, and general vibe. Iconography around
the retail area would be photos from the different stages and albums of Taylor Swift. That would
mean photos from past and present of Taylor’s concerts. The primary color gradient being used
would be black and gray with bright colors such as green, pink, purple, and yellow to contrast the
very dark colors used everywhere else. The typography would be in a white border to contrast all
the other colors and the font would be in Pistilli Roman that would match the font used in
posters. This would be the general mood board to represent the branding of the store.
For Taylor Swift Filipino enthusiasts who want the immersive experience of buying their
idol’s merchandise, The Eras Store will be the ultimate destination for curated merchandise,
blending fashion-forward designs with the evolution and diversity of Taylor Swift’s music, style,
and personality. We provide Swifties a communal haven that deepens their connections with
their idol and co-fanatics. Join fellow Filipino Taylor Swift enthusiasts in showcasing your love
for her through exclusive merchandise that embodies her iconic style and music, elevating your
connection to her artistry with every purchase.
V.
Retail Mix
A. Objectives (Sales and ROI) (Gelo)
The following are the objectives strived for by the Eras Store in its first year of business
operation, with the focus primarily on sales and return on investment.
1. To achieve a monthly sales of Php 50,000 within six months of operation,
subsequently increasing sales by 10% every quarter.
2. To achieve a ROI of 25% within the first year of operation to secure stable
profitability for the business.
3. To grow the customer base by 10% annually, establish an increase in repeat
customers to establish customer loyalty.
4. To achieve quarterly growth in social media followers by 25% to enhance brand
awareness within the campus.
B. Location (specific site and size of proposed store) (Den)
The group’s proposed store is a small pop-up space of 9sqm that will possibly be located
in convention centers such as SMX Convention Center in Pasay or some of the larger SM Malls
such as the Megatrade Hall in Megamall located in Ortigas. This space shall not only focus on
the brand’s retail operations but will also serve as a good exposure for the Eras Store. Despite
aiming to reach customers nationwide, the rationale behind the choice of site is that it is
conveniently located in commercial spaces that guarantee foot traffic as these conventions have a
large number of attendees and are usually grouped into themes per event. The location of the
convention centers also eases the hassle of customers locating the shop. Since this brand is also a
small-to-medium-scale business, joining conventions aims to reduce the costs of “rent” by still
being visible on site and building a loyal customer base amidst the fast-paced trends in pop
culture and social media.
C. Merchandise Mix/Strategies and Pricing (Manila)
Product
Primary products to be sold will be Taylor Swift merchandise. These products range from
the mainstream to the obscure in order to cater to every type of Taylor Swift fan. General
merchandise include Graphic Tees, Sweaters, Tote bags, and Postcards. These items cater to most
general audiences, even those who may not be die-hard Taylor Swift fans. The other types of
products to be sold are the more niche items such as Friendship bracelets, Fan cards, and
experience that comes with the pop up store; These experiences being the friendship bracelet
making and photo booth.
Price
Since Taylor Swift merchandise is a very niche, the premium pricing strategy will be
implied. With the lack of a proper competitor in a very niche market, there is a lot of room to
pursue more premium pricing.
Promotion
The primary promotion strategy will come from advertising within events centers while
there is an ongoing event. This promotion will be centered around the events space and will
contribute to the overall atmosphere of the pop up.
Place
The primary storefront location will be in events centers during large gatherings. These
include events, expos and conventions where large gatherings of fandoms would usually
appear. This is because events and expos are a primary location in which fans of niche things
can purchase things not usually found anywhere else.
D. Retail Communications (include collaterals, E-commerce if you have) (Den)
The retail communications of the Eras Store are mostly found on the official social media
pages of the company, however, are not limited to online collateral. For instance, in-store signage
was displayed as seen in our pop-up store featuring the name of the store. Secondly, inserts and
other physical promotional materials such as a replica of the Eras Tour ticket are also given to
our customers as part of the experience. These retail communications remain cohesive and on
brand despite multiple channels to fulfill the group's goal of bringing the Eras Tour to those who
weren't able to attend live.
In terms of social media for the Eras Store, multiple publication materials and
posters shall be constantly uploaded. As seen in the sample mockup below of the store’s
Instagram feed, the branding shall still center around the Eras Tour theme. Aside from
showcasing the merchandise, interactive posts to connect with the followers shall also be
occasionally posted. Furthermore, if convention or bazaar dates are finalized, a main poster shall
be uploaded per event to keep the viewers updated on the latest retail locations. Overall, this
form of retail communication shall increase brand awareness, promote products, and help
increase brand credibility. Serving as a powerful tool in driving sales, these strategies may
influence the audience in bringing in customers and promoting positive purchase decisions.
E. Store Design, Layout, Visual Merchandising (Manila)
F. Human Resource Plan (positions/tasks and number of employees) (Nikki)
A store is not complete without its employees. With that, the Eras Store
aims to have 8-9 employees for its operations divided as follows:
Position
No. of
Employees
Task/s
Cashier
1
Manages store transactions, expediting the purchasing
process to make it quick and seamless.
Sales Associates
3-4
Stands by at each station of the store (Merchandise for Sale,
Photo Booth, and Friendship Bracelet Station) to assist
customers to answer their queries and help elevate their
experiences.
Customer Service
Representative
2
Answer customer queries and resolve complaints (one
online, one in-store)
Operations
Manager
1
Monitors store operations and conducts and executes plans
for long and short term profitability.
Inventory Control
Specialist
1
Manages inventory, controls costs, regulates flow, reports
defects, and ensures product accuracy.
G. Critical Issues in Store Operations (Gelo)
Despite the hype that the Eras Store can generate just by establishing itself on a small pop
up store in SMX Convention Center, the business is still vulnerable to several critical issues in its
operations. Among these are the following issues that Eras Store anticipates:
1. The Eras Store may find it difficult to manage inventory, especially during peak
season, which might incur additional carrying costs or shipping costs.
2. Supply chains might be disrupted either locally or internationally, which can
cause the merchandise to experience delays, affecting store availability.
3. Regulations of the university, the local city, and the nation may impose rules or
laws that may adversely affect the price and sale of Taylor Swift merchandise,
such as increased tariffs or stricter protocols.
4. Security issues, such as theft of merchandise, are a threat to the store, especially
for displayed items in the merchandise truck, putting the business at a
disadvantage.
H. Customer Service (including Sales Personnel look/uniform if any) (Nikki)
As the store is about bringing the Eras Tour to customers who were not
present and wish to have a community of Swifties together, in order to fully
maximize customer experiences, each personnel must be a fan of Taylor Swift
themselves. This is so that they will be able to better relate the store products to
customer experiences, as well as answer questions regarding the products and
services more accurately. The staff present in the store must greet customers with
a smile, talking to them with the expected respect between customer and business,
and must make use of Taylor Swift references to help entertain customers and
give them relatability.
Lastly, for customers to be able to easily find staff for their queries, each
staff member must wear the store uniform which presents the store name at the
back and at the front on the left chest.
VI.
Financial (Nehro, Louise)
[MARKRTL K35] The Eras Store Financial
This section shows the budget allocation for the initial launch of The Eras Store. Costs
are expected to cover the first quarter (equivalent to 3 months) of operations. Prices are
subjected to review after the said period.
a. Initial Setup Costs (Louise)
Startup Costs
Category
Classification
Cost
Research & Development
₱5,000.00
Branding
₱5,000.00
Licensing & Permits DTI Business Name Registration (Regional)
₱1,000.00
BIR Business Registration
₱530.00
Barangay Business Clearance
₱200.00
Fire Safety Inspection Certificate
₱649.00
Office & Warehouse Security Deposit
Rent
Rent 3-month
₱15,000.00
Utilities
Water
₱3,000.00
Electricity
₱15,000.00
Internet
₱4,500.00
₱30,000.00
Salaries & Benefits
₱300,000.00
Total Startup Costs
₱379,879.00
b. Merchandise (Nehro)
The estimated number of merchandise sold is based on a goal of 20% profit considering the
breakeven quantity.
`
Item
Origin
Unit Cost
Quantity
Total
Official Merch
Official Eras Tour
Hoodies
Japan
4082
200
₱615,000
Official Eras Tour Shirts
Japan
2400
150
₱480,000.
Eras Store Hoodie
-
480
160
₱228,000
Eras Store Shirt
-
310
340
₱105,400
Eras Store Tote Bag
-
200
300
₱60,000
Eras Store Bracelet
-
45
500
₱22,500
150
200
₱30,000
Fanmade Merch
Eras Store Mousepad
-
Packaging
Shipping
c. Physical Store Activation (Louise)
Physical Store Activation
Item
Unit
Unit Price
OQ
Total
~ Operations
Event Registration Fee
₱5,000.00 3 days ₱15,000.00
Logistics
₱1,000.00 3 days
₱3,000.00
~ Merchandise Booth Materials
Display Stands
Multipurpose CD Perfume Display Rack
₱499.00
1
₱499.00
Grid Walls
[45cm x 65cm] Wire Mesh Grid Wall,
White
₱145.00
2
₱290.00
16pcs Acrylic Drawer Organizer Desk
Bins Set
₱445.00
1
₱445.00
Heavy Sequin Fabric 60" inches width,
Purple, Blue, Pink
₱115.00
3
₱345.00
S Hooks (20-pc pack)
₱37.00
5
₱185.00
C Hooks (20 pc pack)
₱45.00
5
₱225.00
Wire Hooks [20 cm] (10-pc pack)
₱65.00
2
₱130.00
Studio Lighting Softbox [50 * 70cm]
with Stand & Light Bulb
₱466.00
2
₱932.00
Metallic Spandex [30x60”], Silver
₱160.00
1
₱160.00
Tin Foil Curtain [1x2M],Silver, Pink,
Blue, Red, Purple, Green, Light Blue
₱22.00
7
₱154.00
Backdrop Support System [2x3M] With
Carry
₱888.00
1
₱888.00
Custom Assorted Sintraboard Cutout
(Die Cut)
₱595.00
1
₱595.00
Black Fedora Hat
₱68.00
1
₱68.00
Bejeweled The Eras Tour Inspired
Sunglasses
₱133.00
5
₱665.00
Feather Fluffy Super Boa
₱35.00
5
₱175.00
Fake Prop Microphone Props
₱73.00
3
₱219.00
Custom The Eras Tour Shirts
₱130.00
2
₱260.00
Glitter top, Gold
₱400.00
1
₱400.00
Floral dress, Pink
₱488.00
1
₱488.00
Knit Cardigan
₱279.00
2
₱558.00
Photo Paper
260GSM Satin Photo Paper A4 (20
Sheets/Pack)
₱97.00
5
₱485.00
Printer Ink
Brother Printer Inks Set
₱992.00
1
₱992.00
Organizing Bins
Backdrop
Hooks
~ Photo Booth Materials
Studio Lights
Backdrop
Backdrop Stand
Props
Costumes
Printer
Brother ADF - T720 T820 T920
₱12,950.00
1 ₱12,950.00
Digital Camera w/ Stand
Canon EOS 1500D DSLR Camera with
18-55 IS II Lens
₱29,999.00
1 ₱29,999.00
~ Friendship Bracelet DIY Station
Beads
Assorted beading Kits
₱129.00
2
₱258.00
Elastic cord
Beading Elastic Cord [1mm x 10M],
Clear
₱23.00
2
₱46.00
Working trays
Non-slip plastic food tray in pink, blue
₱49.00
2
₱98.00
Scissors
-
₱14.00
3
₱42.00
Shop Banner
10oz Tarpaulin [3x5 ft] w/ Eyelet
₱150.00
1
₱150.00
Signage Stand
13oz Tarpaulin [2x5cm] with Base Stand
₱170.00
1
₱170.00
Informative Posters
10oz Tarpaulin [2x3 ft] w/ Eyelet
₱72.00
2
₱144.00
Station Signage Posters
Laminated, A4 Colored Print
₱5.00
2
₱10.00
QR Payment Posters
Laminated, A4 Colored Print
₱5.00
2
₱10.00
Product w/ Price Labels
A4 B&W Print
₱10.00
5
₱50.00
₱2,399.00
3
₱7,197.00
₱225.00
4
₱900.00
~ Print Materials
~ General Materials
Tables
Lifetime Light Commercial Folding
Table 4-feet, White
Chairs
Hannita Monoblock Chair
Speaker
JBL XTREME 3 Portable Bluetooth
₱2,099.00
1
₱2,099.00
Clothing Rack
Single Pole Aluminum Drying Rack
₱189.00
2
₱378.00
Hangers
12-pc-set Plastic Hangers, Black
₱35.00
3
₱105.00
Table Cloths
Premium Geena Cloth [36x60']
₱27.00
6
₱162.00
Extension Cords
Omni Extension Cord Set with Universal
Outlet and Switch
₱300.00
3
₱900.00
Trolley
Hand Truck Foldable Platform Trolley
Capacity 300Kg Push
₱699.00
1
₱699.00
Megabox 12-Liter Storage Box with
Handle
₱149.00
3
₱447.00
Megabox 50-Liter Storage Box with
Handle
₱339.50
5
₱1,697.50
₱5.00
8
₱40.00
Clorox All Purpose Cleaner Spray, 500ml
₱147.00
1
₱147.00
CLEENE Ethyl Alcohol 350ml
₱72.00
3
₱216.00
Storage Boxes
Sanitation Supplies
~ Sales and Transaction
cleaning cloths
Cash Box
Portable Money Secret Safe Box [13cm x
9.5cm x 6cm]
Receipt Papers
Receipt Pad w/ Carbon Copy
₱200.00
1
₱200.00
₱6.00
2
₱12.00
₱130.00
3
₱390.00
~ Staffing Accessories
Custom Shirt
Cotton Spandex Shirt, Front & Back
Design
Physical Store Activation Total
₱86,674.50
d. Office Furnitures, Fixtures, and Supplies (Lulu)
Office Furnitures, Fixtures, and Supplies
Category
Item
Unit Price OQ
Total
Equipment
Printers
Canon Pixma Ip2770 Printer With Original Ink
Cartridge
₱3,199.00
2
₱6,398.00
Thermal Printer
ZJ9200 A6 USB/ Bluetooth
₱2,799.00
1
₱2,799.00
Office Tables
San-Yang Office Table 402448
₱3,465.00
4
₱13,860.00
Office Chairs
Ergonomic Office Chair Mesh
₱750.00
4
₱3,000.00
Shelving Units
5-tier Metal Storage Rack
₱929.00
4
₱3,716.00
Filing Cabinets
4-Tier Office File Drawers
₱4,899.00
2
₱9,798.00
Airconditioning Unit
Condura 6s 1.0Hp Window Type Aircon
₱19,000.0
0
1
₱19,000.00
Electric Fan Units
30" Industrial Floor Fan
₱1,454.00
3
₱4,362.00
Furnitures & Fixtures
Office Supplies
Writing Supplies
Assorted Ballpoint Pens (Black, Red, Blue)
[50 pc pack]
₱250.00
1
₱250.00
Cutting Supplies
Scissors
₱34.00
4
₱136.00
Cutters
₱20.00
4
₱80.00
8.5x11' Bond Paper [500 sheets pack]
₱175.00
1
₱175.00
A4 Sticker Paper [50 sheets pack]
₱147.00
1
₱147.00
Memo pads
₱32.00
4
₱128.00
Sticky notes [3'x3']
₱37.00
4
₱148.00
Ring Binders
₱95.00
5
₱475.00
Staplers & staples
₱55.00
4
₱220.00
Paper Clips [200 pc pack]
₱79.00
2
₱158.00
Binder Clips [40-pc pack]
₱80.00
2
₱160.00
Papers
Filing Supplies
Desk Organizers
Storage Supplies
Tape with Dispenser
₱95.00
2
₱190.00
3-tier Document Trays
₱125.00
4
₱500.00
Stationery Holders
₱79.00
4
₱316.00
Megabox 12-Liter Storage Box
₱149.00
10
₱1,490.00
Megabox 50-Liter Storage Box
₱339.50
10
₱3,395.00
Packaging Supplies
Waybill stickers
A6 [100x150mm]
₱3.60 500
₱139.00
Poly Mailers
Small [17x30cm] , Blue
₱1.04 100
₱96.00
Medium [20x30cm] , Purple
₱1.01 100
₱99.00
Large [32x45cm], White
₱1.04 100
₱96.00
Jewelry Pouch
Self-Sealing Laser Small Plastic Pouch
[7x10cm]
₱1.63 100
₱163.00
Bubble Wraps
[400x100m], Clear
₱0.00 100
₱598.00
Packaging Tape
300m, Clear
₱62.00
3
₱186.00
Packaging Tape Dispenser
-
₱64.00
1
₱64.00
₱34.00
3
₱102.00
Small [8"x11"]
₱1.85 200
₱370.00
Medium [10"x13"]
₱2.75 100
₱275.00
Large [12'x15"]
₱3.45 100
₱345.00
-
₱1.10 300
₱330.00
Stainless Steel Scissors
Customized Non-woven Die
Cut Eco Bag (40 GSM)
Custom Thank You Cards
Total Office Furnitures, Fixtures, and Supplies
₱73,764.00
e. Advertising (Lulu)
Digital
Category
Total
July 2024
August 2024
Budget
Actu Ba
al
l.
September 2024
Budget
Act B
ual al.
Budget
Actu
al Bal.
Budget
Actu Ba
al
l.
Facebook Image
Ads [CPM]
₱10,000.00
-
- ₱3,333.33
-
-
₱3,333.33
-
-
₱3,333.33
-
-
Instagram Story
Ads [CPM]
₱8,000.00
-
- ₱2,666.67
-
-
₱2,666.67
-
-
₱2,666.67
-
-
Instagram Image
Ads [CPM]
₱7,000.00
-
- ₱2,333.33
-
-
₱2,333.33
-
-
₱2,333.33
-
-
Microinfluencer
Partnerships
₱5,000.00
-
- ₱1,666.67
-
-
₱1,666.67
-
-
₱1,666.67
-
-
Content Creation
₱15,000.00
-
- ₱5,000.00
-
-
₱5,000.00
-
-
₱5,000.00
-
-
Total Budget
₱45,000.00
-
₱15,000.0
0
₱15,000.00
₱15,000.00
Print
Category
Unit
Unit Price OQ
Total
Outdoor Tarpaulin Banner
13oz Tarpaulin [2x5cm] with Base Stand
₱170.00
2
₱340.00
Posters
10oz Tarpaulin [3x5 ft] w/ Eyelet
₱150.00
2
₱300.00
Flyers (Mock Eras Tour Ticket)
Ticket Style Invitation, Glossy
Photopaper [250 gsm]
₱5.00 500 ₱2,500.00
Total Print
₱3,140.00
f. Miscellaneous Allocations (Nehro)
Other Allocations
Expense
Price
Commercial Property Insurance
₱10,000.00
Contingency Fund
₱10,000.00
Total Print
VII.
₱20,000
Investment Plan (how much you will spend in setting up retail concept) (Nikki, Mark,
Den)
The business will require a grand total investment of ___ which will be used to
source products, prepare staff, and rent venues, each of which will be broken down
below.
This investment goal will be obtained through 10% from bank loans, 25% from
the shareholders, 65% from outside investors.
First for products, as the store aims to offer 40% Official merch and 60%
Fan-made merch, the store will require an initial investment of ___ for products.
Product
Origin
Average
Price/pc
(in PHP)
OFFICIAL MERCH (4 item types)
Quantity
Total
(in PHP)
Official Eras Tour T-Shirts
Japan
2,400
200
480,000
Official Eras Tour Hoodies
Japan
4,082
150
615,000
Official Eras Tour Tote Bag
Japan
1,480
350
444,000
Official Eras Tour Towel
Japan
928
300
278,400
Shipping Fee
86,000
LOCAL/FAN-MADE MERCH (6 item types)
Popular
Filipino
Swiftie
Artist
Shopee
Artist
Collaborati
on
Etc
etc
etc
Regarding staff and venue costs, the business shall require an investment of ___ in order
to hire staff, provide their uniforms, and rent venues for selling and storage.
VIII.
Break Even Analysis (Ara)
Break-even Analysis is a point where the total revenue and costs meet. This method is
used to determine the quantity of products or amount of money necessary to cover all the
expenses. The table below shows the total fixed expense of the Eras store for a one week event in
the SMX Convention center.
Fixed Expenses (SMX Convention Center)
Costs
Amount (per week)
Rent
Php 25,000
Taxes
Php 5,000
Salaries/ wages
Php 16,000
TOTAL
Php 46,000
The rent for a stall in a 9sqm stall amounts to Php 5,000 per day, while the salaries
amount to __ per day. These fixed expenses will remain constant every day for five business
days. The Break-even point is determined by dividing the total fixed expense over the selling
price of one product and its variable cost. Variable costs are expenses that vary over time due to
particular factors. The table below shows the variable expense and the total break-even quantity
of the Eras Store hoodie, shirt, and tote bag.
Variable Expenses (Eras Store Hoodie-Php 1500)
Costs
Amount (per qty)
Raw
Php 200
Production
Php 200
Packaging
Php 60
TOTAL VE
Php 460
Break-Even Quantity
Fixed costs/(Selling price-Variable Costs)
Break-Even Quantity
46000/(1500-460)
TOTAL BEQ
44.2
Variable Expenses (Eras Store Shirt- Php 800)
Costs
Amount (per qty)
Raw
Php 130
Production
Php 150
Packaging
Php 50
TOTAL VE
Php 310
Break-Even Quantity
Fixed costs/(Selling price-Variable Costs)
Break-Even Quantity
46000/(800-310)
TOTAL BEQ
93.87
Variable Expenses (Eras Store Tote Bags- Php 400)
Costs
Amount (per qty)
Raw
Php 70
Production
Php 100
Packaging
Php 30
TOTAL VE
Php 200
Break-Even Quantity
Fixed costs/(Selling price-Variable Costs)
Break-Even Quantity
46000/(400-200)
TOTAL BEQ
230
The products aforementioned will be sourced out. Since the products will be sourced out,
the variable expenses include raw materials, production, and packaging. The hoodies, shirts, and
tote bags will be purchased plain from suppliers. The designs will be printed by printing shops
and will be shipped to our store. The Eras Store will be needing 44.2 hoodies to suffice the total
fixed expenses by the store when setting up the stall. With 93.87 shirts and 230 tote bags, the
store will have enough revenue to cover other expenses such as the materials and equipment
needed for the stall.
Variable Expenses (Eras Store Bracelet- Php 100)
Costs
Amount (per qty)
Raw
Php 15
Production
Php 25
Packaging
Php 5
TOTAL VE
Php 45
Break-Even Quantity
Fixed costs/(Selling price-Variable Costs)
Break-Even Quantity
46000/(100-45)
TOTAL BEQ
836.36
Variable Expenses (Eras Store Mousepad- Php 250)
Costs
Amount (per qty)
Raw
Php 50
Production
Php 80
Packaging
Php 20
TOTAL VE
Php 150
Break-Even Quantity
Fixed costs/(Selling price-Variable Costs)
Break-Even Quantity
46000/(250-150)
TOTAL BEQ
460
The 60% of the products will be our own design. The store will be needing 836.36
bracelets to cover the fixed expenses. However, since there is enough revenue from the hoodies,
shirts, and tote bags, the store can use the excess bracelets as freebies for every purchase of our
product. The store will also be needing 460 mousepads to meet the fixed costs. However, this
might cause an excess in the inventory so the store might limit the sale on the mousepad.
Variable Expenses (Eras Tour Hoodie- Php 250)
Costs
Amount (per qty)
Product
Php 4082
Shipping
Php 500
Packaging
Php 80
TOTAL VE
Php 4662
Break-Even Quantity
Fixed costs/(Selling price-Variable Costs)
Break-Even Quantity
46000/(5800-4662)
TOTAL BEQ
Php 40.42
Variable Expenses (Eras Tour Shirt- Php 4500)
Costs
Amount (per qty)
Product
Php 2400
Shipping
Php 500
Packaging
Php 80
TOTAL VE
Php 2980
Break-Even Quantity
Fixed costs/(Selling price-Variable Costs)
Break-Even Quantity
46000/(4500-2980)
TOTAL BEQ
Php 30.26
Variable Expenses (Eras Tour Tote Bag- Php 3800)
Costs
Amount (per qty)
Product
Php 1480
Shipping
Php 500
Packaging
Php 80
TOTAL VE
Php 2060
Break-Even Quantity
Fixed costs/(Selling price-Variable Costs)
Break-Even Quantity
46000/(3800-2060)
TOTAL BEQ
Php 26.43
Variable Expenses (Eras Tour Towel- Php 3500)
Costs
Amount (per qty)
Product
Php 928
Shipping
Php 500
Packaging
Php 80
TOTAL VE
Php 1508
Break-Even Quantity
Fixed costs/(Selling price-Variable Costs)
Break-Even Quantity
46000/(3500-1508)
TOTAL BEQ
Php 23.09
The 40% of the products sold by Eras Store are Taylor Swift’s official merch from her
Eras Tour. With this, we will be needing to purchase the products from the official store and
websites to retail them. The variable expenses of the official merch are different from the
variable expenses of the Eras Store Merch while the fixed expenses remain the same. The
variable expenses for the Eras Tour merch will only include the product, shipping, and packaging
costs since they are readily available for purchase.
The Eras Store will only be needing 40.42 hoodies, 30.26 shirts, 26.43 tote bags, and
23.09 towels to suffice the fixed costs and earn more revenue. The Eras Store may opt to sell
these products since they are in demand, especially for fans who want to experience the feeling
of being part of the Eras Tour concert.