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CHAPTER 4 THE MARKET The market study is the phase where the marketing aspects and characteristics are

examined to determine the demand and supply in the business area. Business individuals conduct a study of the market for it is essentially the lifeblood of every project feasibility study. In this stage, the customers and competitors are identified. Analysis is made whether there is a demand in the target area and adequate supply the competitors can give to the customers. Through the analysis, the research will have a wider view on the competition it will offer. It also provides assessment of the target market and knowledge if the business is feasible or not. The objectives of the market study are the following: 1. To be able to present an analysis of the present market state in terms of demand of the food services to be offered by the firm. 2. To form an effective marketing strategy for the project. 3. To be able to come up with an updated competitive situation of the canton business. 4. To have a comparative study of the existing price schemes. A. CUSTOMERS The customers would have a great effect on the patronage of certain product. They play an important role in the recognition of the business products or services. The target markets of Flavor-Eat Flavored Canton Noodles are the five (5) markets located at Brgy. Pag-asa, Mandaluyong City. The groceries and dry goods section of the five (5) markets namely: Kalentong Market, Munting Palengke, Market Place, Flea Market and Lucky Market, will be the primary potential customers of the business. B. COMPETITORS A competitor is any person or entity which is a contending against another. In business, a competitor is an entity in the same industry that offers similar products or services. Flavor-Eat Flavored Canton has existing indirect competitors within the location.

C. MARKET RESEARCH 1. POPULATION SIZE DETERMINATION The researchers went to the five (5) markets located at Brgy. Pag-asa, Mandaluyong City and searched for the number of stalls in groceries and dry good section. The researchers found 63 potential distributors but only 54 out of 63 answered the survey. This study will help ascertain the demand and supply for regular canton noodles according to the response from the total population. The research study will therefore use 54 distributors are the respondents for the survey checklist.

Munting Palengke 6 29 4 TOTAL NUMBER OF RESPONDENTS: 63-9*=54 *number of the population who did not answer the survey

Kalentong Market Total: 20

List of Respondents Market Place Flea Market

Lucky Market 4

2. SURVEY ANALYSIS TABLE 1 DISTRIBUTION OF RESPONDENTS WHO PURCHASE REGULAR CANTON NOODLES FREQUENCY PERCENTAGE YES 43 79.63% NO 11 20.37% TOTAL 54* 100%

*total number of respondents FIGURE 1 DISTRIBUTION OF RESPONDENTS WHO PURCHASE REGULAR CANTON NOODLES

20.37%

Yes No

79.63%

ANALYSIS: Most of the respondents buy regular canton noodles with 79.63% and rest are those who never bought with 11.66% It reflects that most of our target markets have purchased regular canton noodles. Thus, only a few need more persuasion before patronizing regular canton noodles.

TABLE 2 CONSUMPTION HABIT OF RESPONDENTS FREQUENCY DAILY 2 WEEKLY 21 TWICE A WEEK 11 MONTHLY 3 TWICE A MONTH 6 QUARTERLY TOTAL 43* *respondents who buy regular canton noodles PERCENTAGE 4.65% 48.84% 25.58% 6.98% 13.95% 100%

FIGURE 2 CONSUMPTION HABIT OF RESPONDENTS

13.95%

0% 4.65%

6.98%

Daily Weekly Twice a week Monthly 48.84% Twice a month Quarterly

25.68%

ANALYSIS: Based on Table 2, most of the respondents or 48.84% answered weekly while the least percentage or 0% answered quarterly. The results show that most of our potential buyers purchase a similar product weekly. We anticipate that this will reflect their purchasing habit for our product.

TABLE 3 DISTRIBUTION OF RESPONDENTS ON WHERE THEY PURCHASE REGULAR CANTON NOODLES FREQUENCY PERCENTAGE EXCELLENT 15 34.88% TRIPLE PANDA 8 18.60% GOLDEN BUDDHA 6 13.95% HAPIMI 4 9.30% YANHU 2 4.65% RICKIMEL 5 11.63% DELICIOUS 3 6.98% TOTAL 43* 100 % *respondents who buy regular canton noodles FIGURE 3 WHERE THE RESPONDENTS BUY REGULAR CANTON NOODLES

6.98% 11.63% Excellent 34.88% 4.65% Triple Panda Golden Buddha Hapimi 9.30% Yanhu RickiMel Delicious 13.95% 18.60%

ANALYSIS: Based on the survey, most of the respondents or 34.88% usually buy regular canton noodles from Excellent; 8 or 18.60% from Triple Panda; 6 or 13.95% buy Golden Buddha canton; 9.40% or 4 of them answered Hapimi; 4.65% or 2 respondents chose Yanhu; RickiMel with 11.63% and ; 3 respondents or 6.98% responded Delicious.

TABLE 4.1 DISTRIBUTION OF RESPONDENTS WHO PURCHASE 250 GRAMS/PACK OF REGULAR CANTON NOODLES FREQUENCY PERCENTAGE* 250 GRAMS 22 51.16% TOTAL 22 51.16% *frequency divided by respondents who buy regular canton noodles FIGURE 4.1 DISTRIBUTION OF RESPONDENTS WHO PURCHASE 250 GRAMS/PACK OF REGULAR CANTON NOODLES

48.40% 51.60%

250 grams Remaining respondents

ANALYSIS: Based on the survey, 51.60% or 22 out of 43 respondents patronize 250 grams or regular canton noodles.

TABLE 4.1.1 DISTRIBUTION OF RESPONDENTS ON HOW MUCH THEY ARE SPENDING FOR 250 GRAMS/PACK OF REGULAR CANTON NOODLES FREQUENCY PERCENTAGE* 20-30 PHP 13 59.09% 31-40 PHP 9 40.91% 41-50 PHP TOTAL 22 100% *frequency divided by the total number of respondents who buy 250 grams FIGURE 4.1.1 DISTRIBUTION OF RESPONDENTS ON HOW MUCH THEY ARE SPENDING FOR 250 GRAMS/PACK OF REGULAR CANTON NOODLES

0%

40.91%

20-30 php 31-40 php 59.09% 41-50 php

ANALYSIS: Most of the respondents buy regular canton noodles with the price that ranges from 20-30 php, next is 40.91% or 9 of the respondents answered 31-40 php.

TABLE 4.2 DISTRIBUTION OF RESPONDENTS WHO PURCHASE 500 GRAMS/PACK OF REGULAR CANTON NOODLES FREQUENCY PERCENTAGE* 500 GRAMS 31 79.09% TOTAL 31 79.09% *frequency divided by respondents who buy regular canton noodles

FIGURE 4.2 DISTRIBUTION OF RESPONDENTS WHO PURCHASE 500 GRAMS/PACK OF REGULAR CANTON NOODLES

20.91%

500 grams Remaining respondents

79.09%

ANALYSIS: Based on the survey, 79.09% or 31 out of 43 respondents patronize 500 grams or regular canton noodles.

TABLE 4.2.1 DISTRIBUTION OF RESPONDENTS ON HOW MUCH THEY ARE SPENDING FOR 500 GRAMS/PACK OF REGULAR CANTON NOODLES FREQUENCY PERCENTAGE* 30-40 PHP 4 12.90% 41-50 PHP 15 48.39% 51-60 PHP 12 38.71% TOTAL 31 100% *frequency divided by the total number of respondents who buy 500 grams FIGURE 4.2.1 DISTRIBUTION OF RESPONDENTS ON HOW MUCH THEY ARE SPENDING FOR 500 GRAMS/PACK OF REGULAR CANTON NOODLES

12.90%

38.71% 30-40 php 41-50 php 51-60 php

48.39%

ANALYSIS: Most of the respondents buy regular canton noodles with the price that ranges from 41-50 php, next is 38.71% of the respondents answered 51-60 php and the least answered 30-40 php.

TABLE 4.3 DISTRIBUTION OF RESPONDENTS WHO PURCHASE 1000 GRAMS/PACK OF REGULAR CANTON NOODLES FREQUENCY PERCENTAGE* 1000 GRAMS 20 46.51% TOTAL 20 46.51% *frequency divided by respondents who buy regular canton noodles FIGURE 4.3 DISTRIBUTION OF RESPONDENTS WHO PURCHASE 1000 GRAMS/PACK OF REGULAR CANTON NOODLES

46.51% 53.49%

1000 grams Remaining respondents

ANALYSIS: Based on the survey, 46.51% or 20 out of 43 respondents patronize 1000 grams or regular canton noodles.

TABLE 4.3.1 DISTRIBUTION OF RESPONDENTS ON HOW MUCH THEY ARE SPENDING FOR 1000 GRAMS/PACK OF REGULAR CANTON NOODLES FREQUENCY PERCENTAGE* 60-80 PHP 4 20% 81-100 PHP 6 30% 101-120 PHP 10 50% TOTAL 20 100% *frequency divided by the total number of respondents who buy 1000 grams FIGURE 4.3.1 DISTRIBUTION OF RESPONDENTS ON HOW MUCH THEY ARE SPENDING FOR 1000 GRAMS/PACK OF REGULAR CANTON NOODLES

20%

60-80 php 50% 81-100 php 101-120 php

30%

ANALYSIS: Most of the respondents buy regular canton noodles with the price that ranges from 101-120 php, next is 30% of the respondents answered 81-100 php and the least answered 60-80 php.

FIGURE 4.4 DISTRIBUTION OF RESPONDENTS ON WHAT GRAMS/PACKS OF REGULAR CANTON NOODLES THEY PREFER

90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 250 grams 500 grams 1000 grams 51.16% 79.09%

46.51%

ANALYSIS: This figure shows what grams of regular canton noodles the respondents prefer. 500 grams comes first with 79.09%, followed by 250 grams with 51.16% and the least is 1000 grams with 46.51%.

TABLE 5.1 DISTRIBUTION OF RESPONDENTS ON HOW MANY PACKS OF 250 GRAMS THEY PURCHASE FREQUENCY PERCENTAGE* 1-10 PACKS 21 95.45% 11-20 PACKS 1 4.55% 21-30 PACKS TOTAL 22 100% *frequency divided by the number of respondents who are buying 250 grams regular canton noodles FIGURE 5.1 DISTRIBUTION OF RESPONDENTS ON HOW MANY PACKS OF 250 GRAMS THEY PURCHASE

4.55% 0%

1-10 packs 11-20 packs 21-30 packs

95.45%

ANALYSIS: The table and figure show the number of 250-gram packs of regular canton noodles the respondents purchase. Majority of them answered 1-10 packs with 94.45%, the next is 11-20 packs with 4.55% and the least is 21-30 packs with 0%.

TABLE 5.2 DISTRIBUTION OF RESPONDENTS ON HOW MANY PACKS OF 500 GRAMS THEY PURCHASE FREQUENCY PERCENTAGE* 1-10 PACKS 28 90.32 11-20 PACKS 3 9.68 21-30 PACKS TOTAL 31 100% *frequency divided by the number of respondents who are buying 500 grams regular canton noodles

FIGURE 5.2 DISTRIBUTION OF RESPONDENTS ON HOW MANY PACKS OF 500 GRAMS THEY PURCHASE

9.68%

0%

1-10 packs 11-20 packs 21-30 packs

90.32%

ANALYSIS: The table and figure show the number of 500-gram packs of regular canton noodles the respondents purchase. Majority of them answered 1-10 packs with 90.32%, the next is 11-20 packs with 9.68% and the least is 21-30 packs with 0%.

TABLE 5.3 DISTRIBUTION OF RESPONDENTS ON HOW MANY PACKS OF 1000 GRAMS THEY PURCHASE FREQUENCY PERCENTAGE* 1-10 PACKS 17 85% 11-20 PACKS 3 15% 21-30 PACKS TOTAL 20 100% *frequency divided by the number of respondents who are buying 1000 grams regular canton noodles

FIGURE 5.3 DISTRIBUTION OF RESPONDENTS ON HOW MANY PACKS OF 1000 GRAMS THEY PURCHASE

15%

0%

1-10 packs 11-20 packs 21-30 packs

85%

ANALYSIS: The table and figure show the number of 1000-gram packs of regular canton noodles the respondents purchase. Majority of them answered 1-10 packs with 85%, the next is 11-20 packs with 15% and the least is 21-30 packs with 0%.

TABLE 6 DISTRIBUTION OF RESPONDENTS ON REASON WHY THEY PATRONIZE REGULAR CANTON NOODLES FREQUENCY PERCENTAGE** DEMAND 24 55.81% PRICE 6 13.95% PROFIT 2 4.65% AVAILABILITY 11 25.58% TOTAL 43* 100% *respondents who buy regular canton noodles **frequency divided by respondents who buy regular canton noodles FIGURE 6 DISTRIBUTION OF RESPONDENTS ON REASON WHY THEY PATRONIZE REGULAR CANTON NOODLES

25.58%

Demand Price 4.65% 55.81% Profit Availability

13.95%

ANALYSIS: The table and figure shows why the respondents patronize regular canton noodles. Most of them answered Demand with 55.81% and the least of them answered profit.

TABLE 7 DISTIBUTION OF RESPONDENTS WHO ARE WILLING TO BUY FLAVORED NOODLES FREQUENCY PERCENTAGE YES 50 92.59% NO 4 7.41% TOTAL 54* 100% *total number of respondents FIGURE 7 DISTRIBUTION OF RESPONDENTS WHO ARE WILLING TO BUY FLAVORED CANTON NOODLES

7.41%

Yes No

92.59%

ANALYSIS: The table and figure show that 92.59% or 50 respondents are willing to patronize flavored canton noodles while 7.41% or 4 respondents are not willing to patronize flavored canton noodles. This show that potentially most of our target market will patronize flavored canton noodles and that would become our demand. This also means that while the business is operating we could anticipate generating profits from satisfying their demand.

TABLE 8 DISTRIBUTION OF RESPONDENTS ACCORDING TO WHAT FLAVOR OF CANTON NOODLES THEY PREFER FREQUENCY* PERCENTAGE** CALAMANSI 36 72% SPICY 44 88% CHICKEN 47 94% PORK 23 46% SHRIMP 41 82% *the frequency is the number respondents who chose each flavor. The respondents are allowed to choose more than one. *frequency over the 50 respondents (source: table 6), who are willing to patronize the product for each flavor.

FIGURE 8 DISTRIBUTION OF RESPONDENTS ACCORDING TO WHAT FLAVOR OF CANTON NOODLES THEY PREFER

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Calamansi Spicy 72% 88%

94% 82%

46%

Chicken

Pork

Shrimp

ANALYSIS: This shows the percentage of each filling according to the respondents choice. The table and figure show that the respondents preferred chicken, spicy, shrimp, Calamansi and pork, in descending order.

TABLE 9.1 DISTRIBUTION OF RESPONDENTS ON HOW MANY ARE WILLING TO PURCHASE 250 GRAMS/PACK FREQUENCY PERCENTAGE* 250 GRAMS 43 86% TOTAL 43 86% *frequency divided by respondents who are willing to purchase flavored canton noodles

FIGURE 8.1 DISTRIBUTION OF RESPONDENTS ON HOW MANY ARE WILLING TO PURCHASE 250 GRAMS/PACK
14%

250 grams Remaining Respondents

86%

ANALYSIS: Survey shows that 43 or 86% of the respondents are willing to patronize 250 grams of flavored canton noodles.

TABLE 9.1.1 DISTRIBUTION OF RESPONDENTS ON HOW MUCH THEY ARE WILLING TO SPEND FOR 250 GRAMS/PACK OF FLAVORED CANTON NOODLE FREQUENCY PERCENTAGE** 20-30 PHP 23 53.49% 31-40 PHP 11 25.58% 41-50 PHP 9 20.93% TOTAL 43* *total number of respondents who are willing to purchase 250 grams of flavored canton noodles **frequency divided by the number of respondents who are willing to buy 250 grams of canton noodles FIGURE 9.1.1 DISTRIBUTION OF RESPONDENTS ON HOW MUCH THEY ARE WILLING TO SPEND FOR 250 GRAMS/PACK OF FLAVORED CANTON NOODLE

20.93%

20-30 php 31-40 php 53.49% 41-50 php

25.58%

ANALYSIS: Survey shows that most of the respondents or 53.59% are willing to spend 20-30 php for a piece of flavored canton noodles while the least preferred is 41-50 php or 20.93%

TABLE 9.2 DISTRIBUTION OF RESPONDENTS ON HOW MANY ARE WILLING TO PURCHASE 500 GRAMS/PACK FREQUENCY PERCENTAGE* 500 GRAMS 39 78% TOTAL 39 78% *frequency divided by the number of respondents who are willing to buy flavored canton noodles FIGURE 9.2 DISTRIBUTION OF RESPONDENTS ON HOW MANY ARE WILLING TO PURCHASE 500 GRAMS/PACK

22%

500 grams Remaining respondents

78%

ANALYSIS: Survey shows that 39 or 78% of the respondents are willing to patronize 500 grams of flavored canton noodles.

TABLE 9.2.1 DISTRIBUTION OF RESPONDENTS ON HOW MUCH THEY ARE WILLING TO SPEND FOR 500 GRAMS/PACK OF FLAVORED CANTON NOODLE FREQUENCY PERCENTAGE* 30-40 PHP 9 23.08% 41-50 PHP 25 64.10% 51-60 PHP 5 12.82% TOTAL 39* 100% *total number of respondents who are willing to purchase 500 grams of flavored canton noodles **frequency divided by the number of respondents who are willing to buy 250 grams of canton noodles

FIGURE 9.2.1 DISTRIBUTION OF RESPONDENTS ON HOW MUCH THEY ARE WILLING TO SPEND FOR 500 GRAMS/PACK OF FLAVORED CANTON NOODLE

12.82% 23.08%

30-40 php 41-50 php 51.60 php

64.10%

ANALYSIS: Survey shows that 25 of the respondents or 64.10% are willing to spend 41-50 php for a piece of flavored canton noodles while the least preferred is 51-60 php with 20.93%.

TABLE 9.3 DISTRIBUTION OF RESPONDENTS ON HOW MANY ARE WILLING TO PURCHASE 1000 GRAMS/PACK FREQUENCY PERCENTAGE* 1000 GRAMS 27 54% TOTAL 27 54% *frequency divided by the number of respondents who are willing to buy flavored canton noodles FIGURE 9.3 DISTRIBUTION OF RESPONDENTS ON HOW MANY ARE WILLING TO PURCHASE 1000 GRAMS/PACK

46% 54%

1000 grams Remaining respondents

ANALYSIS: Survey shows that 27 or 54% of the respondents are willing to patronize 1000 grams of flavored canton noodles.

TABLE 9.3.1 DISTRIBUTION OF RESPONDENTS ON HOW MUCH THEY ARE WILLING TO SPEND FOR 1000 GRAMS/PACK OF FLAVORED CANTON NOODLE FREQUENCY PERCENTAGE** 60-80 PHP 3 11.11% 81-100 PHP 11 40.74% 101-120 PHP 13 48.15% TOTAL 27* 100% *total number of respondents who are willing to purchase 1000 grams of flavored canton noodles **frequency divided by the number of respondents who are willing to buy 1000 grams of canton noodles FIGURE 9.3.1 DISTRIBUTION OF RESPONDENTS ON HOW MUCH THEY ARE WILLING TO SPEND FOR 1000 GRAMS/PACK OF FLAVORED CANTON NOODLE

11.11%

60-80 php 48.15% 81-100 php 101-120 php 40.74%

ANALYSIS: The table and figure show that the most preferred price range is 101-120 php with 48.15% while the least preferred is 60-80 php with 11.11%.

TABLE 10.1 DISTRIBUTION OF RESPONDENTS ON HOW MANY PACKS OF 250 GRAMS ARE THEY WILLING TO PURCHASE FREQUENCY PERCENTAGE** 1-10 PACKS 38 88.37% 11-20 PACKS 5 11.63% 21-30 PACKS TOTAL 43* 100% *total number of respondents who are willing to purchase 250 grams/pack of flavored canton noodles **frequency divided by the number of respondents who are willing to buy 250 grams flavored canton noodles TABLE 10.1 DISTRIBUTION OF RESPONDENTS ON HOW MANY PACKS OF 250 GRAMS ARE THEY WILLING TO PURCHASE

11.63%

0%

1-10 packs 11-20 packs 21-30 packs

88.37%

ANALYSIS: The table and figure show the number of 250-gram packs of regular canton noodles the respondents are willing to purchase. Majority of them answered 1-10 packs with 88.37%, the next is 11-20 packs with 11.63% and the least is 21-30 packs with 0%.

TABLE 10.2 DISTRIBUTION OF RESPONDENTS ON HOW MANY PACKS OF 500 GRAMS ARE THEY WILLING TO PURCHASE FREQUENCY PERCENTAGE* 1-10 PACKS 37 94.87% 11-20 PACKS 2 5.13% 21-30 PACKS TOTAL 39* 100% *total number of respondents who are willing to purchase 500 grams/pack of flavored canton noodles **frequency divided by the number of respondents who are willing to buy 500 grams flavored canton noodles TABLE 10.2 DISTRIBUTION OF RESPONDENTS ON HOW MANY PACKS OF 500 GRAMS ARE THEY WILLING TO PURCHASE

5.13% 0%

1-10 packs 11-20 packs 21-30 packs

94.87%

ANALYSIS: The table and figure show the number of 500-gram packs of regular canton noodles the respondents are willing to purchase. Majority of them answered 1-10 packs with 94.87%, the next is 11-20 packs with 5.13% and the least is 21-30 packs with 0%.

TABLE 10.3 DISTRIBUTION OF RESPONDENTS ON HOW MANY PACKS OF 1000 GRAMS ARE THEY WILLING TO PURCHASE FREQUENCY PERCENTAGE** 1-10 PACKS 27 100% 11-20 PACKS 21-30 PACKS TOTAL 27* 100% *total number of respondents who are willing to purchase 250 grams/pack of flavored canton noodles **frequency divided by the number of respondents who are willing to buy 250 grams flavored canton noodles TABLE 10.3 DISTRIBUTION OF RESPONDENTS ON HOW MANY PACKS OF 1000 GRAMS ARE THEY WILLING TO PURCHASE

0%

1-10 packs 11-20 packs 21-30 packs

100%

ANALYSIS: The table and figure show the number of 1000-gram packs of regular canton noodles the respondents are willing to purchase. Majority of them answered 1-10 packs with 100%, the least are 11-20 packs and 21-30 packs with 0%.

TABLE 11 DISTRIBUTION OF RESPONDENTS ACCORDING TO HOW OFTEN THEY WILL BUY PACK/S OF FLAVORED NOODLES FREQUENCY PERCENTAGE DAILY 3 6% WEEKLY 26 52% TWICE A WEEK 10 20% MONTHLY 6 12% TWICE A MONTH 5 10% QUARTERLY TOTAL 50 100% FIGURE 11 DISTRIBUTION OF RESPONDENTS ACCORDING TO OFTEN THEY WILL BUY PACK/S OF FLAVORED CANTON NOODLES

10%

0%

6%

12%

Daily Weekly Twice a week Monthly Twice a month

20%

52%

Quarterly

ANALYSIS: The table and figure show how often the respondents will buy packs of flavored canton noodles. Weekly is leading with 52% or 26 out of 50 respondents while the least is quarterly having 0%.