Market Share

There are only a few sellers of empanada in Calamba City, Laguna. Yumpanada is one of
the leading stores that offer different flavors of empanada. Best seller flavors include asado and
ham and cheese. Stores, such as Red Ribbon, Goldilocks, and Starbucks, offer chicken and pork
empanada. Jollibee and McDonalds offer peach mango pie and tuna pie, respectively. The
market share is computed using the formula:

Market Share = Projected Annual Production Capacity x 100%
Total Projected Annual Demand


= Maximum Capacity per day x Capacity to operate x Days in a year x 100%
Demand per day x Days in a year

= (240 x 35% x 240) x 100%
90 x 240

= 0.9333%
Figure 5 displays the market share of Empandes within Calamba.










Figure 5. Market share of Empanades.
Sales Forecast


To determine Empanadess sales for 2014, 2015 and 2016, the proponents have
conducted an interview with a competitor, who is selling ham and cheese empanada. The
researchers also conducted a survey to its target market. The population for the target market is
3,483 persons as verified by Mr. Geluz. To determine the sample size for the survey, the Slovins
formula was used.

Where:
n = number of samples
N = total population
e = margin of error

n = 359

The survey results show the following:

Sample Size
359
Persons whose budget for food is below Php10.00
46
Persons who will not buy an empanada for P10.00
17
Total number of possible consumers of Empanades
296


Tables 12 to 14 exhibit the demand and sales forecast for Empanades from the results of
the survey.



Table 12. Demand for a Php 10.00 empanada
NUMBER OF
CONSUMERS
NUMBER OF PIECES OF
EMPANADA THAT A CONSUMER
WILL BUY FOR A WEEK
DEMAND FOR
EMPANADA PER WEEK
IN PIECES
160 1 160
116 2 232
20 3 60
TOTAL 296 452

The demand of an empanada per week is 452 pieces. This will be divided into five days
per week to arrive at the total demand per day. Therefore, the total demand of an empanada per
day is 90 pieces. Empanades will then make only 35% of its capacity to cover the demand of the
residents of Brgy. Uwisan. Since 240 units are the maximum capacity per day, only 35% of that,
which is 84 units will be produced by the business per day. These 84 units of production will be
enough to cover the demand of 90 units.
Table 13. Sales forecast for 2014 based on capacity
MONTH DAYS CAPACITY (%) SALES, 2014 (Php) COMPUTATION
Nov 22 35% 18,480.00 22days x (240 units x 35%) x P10
Dec 20 35% 16,800.00 20days x (240 units x 35%) x P10
Jan 20 35% 16,800.00 20days x (240 units x 35%) x P10
Feb 20 35% 16,800.00 20days x (240 units x 35%) x P10
Mar 21 35% 17,640.00 21days x (240 units x 35%) x P10
Apr 22 35% 18,480.00 22days x (240 units x 35%) x P10
May 22 35% 18,480.00 22days x (240 units x 35%) x P10
Jun 21 35% 17,640.00 21days x (240 units x 35%) x P10
Jul 23 35% 19,320.00 23days x (240 units x 35%) x P10
Aug 21 35% 17,640.00 21days x (240 units x 35%) x P10
Sept 21 35% 17,640.00 21days x (240 units x 35%) x P10
Oct 22 35% 18,480.00 22days x (240 units x 35%) x P10
TOTAL 255

Php 214,200.00
Ave. Capacity 35%


For the past three years, the price of flour has increased by 7% every year
(http://newsinfo.inquirer.net/456855/price-of-pinoy-tasty-pandesal-to-go-up-later-this-month, 8
Aug 2013). Therefore, it is expected that the price of flour will continue to increase by 7% in the
succeeding years. On the other hand, the price of cocoa for chocolates has decreased by 1.89%
for the past four years. Therefore, it is expected that the price of chocolates will decrease by
1.89% in the first two years. However, the price will remain stable during 2016.
(http://www.tradingeconomics.com/commodity/cocoa, 8 Aug 2013). Since these are only
minimal changes in the product costing, the price of an empanada will remain constant for the
next three years. Table 15 shows the sales forecast of Empanades in two years.






Table 14. Sales forecast for 2015and 2016 based on capacity
MONTH DAYS CAPACITY (%) SALES (Php) COMPUTATION
Nov, 2015 20 35% 16,800.00 20days x (240 units x 35%) x P10
Dec, 2015 23 35% 19,320.00 23days x (240 units x 35%) x P10
Jan, 2015 22 35% 18,480.00 22days x (240 units x 35%) x P10
Feb, 2015 20 35% 16,800.00 20days x (240 units x 35%) x P10
Mar, 2015 22 35% 18,480.00 22days x (240 units x 35%) x P10
Apr, 2015 22 35% 18,480.00 22days x (240 units x 35%) x P10
May, 2015 21 35% 17,640.00 21days x (240 units x 35%) x P10
Jun, 2015 22 35% 18,480.00 22days x (240 units x 35%) x P10
Jul, 2015 23 35% 19,320.00 23days x (240 units x 35%) x P10
Aug, 2015 21 35% 17,640.00 21days x (240 units x 35%) x P10
Sept, 2015 22 35% 18,480.00 22days x (240 units x 35%) x P10
Oct, 2015 22 35% 18,480.00 22days x (240 units x 35%) x P10
TOTAL 260

Php 218,400.00
Ave. Capacity 35%


Nov, 2016 21 35% 17,640.00 21days x (240 units x 35%) x P10
Dec, 2016 23 35% 19,320.00 23days x (240 units x 35%) x P10
Jan, 2016 21 35% 17,640.00 21days x (240 units x 35%) x P10
Feb, 2016 21 35% 17,640.00 21days x (240 units x 35%) x P10
Mar, 2016 23 35% 19,320.00 23days x (240 units x 35%) x P10
Apr, 2016 21 35% 17,640.00 21days x (240 units x 35%) x P10
May, 2016 22 35% 18,480.00 22days x (240 units x 35%) x P10
Jun, 2016 22 35% 18,480.00 22days x (240 units x 35%) x P10
Jul, 2016 21 35% 17,640.00 21days x (240 units x 35%) x P10
Aug, 2016 22 35% 18,480.00 22days x (240 units x 35%) x P10
Sept, 2016 22 35% 18,480.00 22days x (240 units x 35%) x P10
Oct, 2016 21 35% 17,640.00 21days x (240 units x 35%) x P10
TOTAL 260

Php 218,400.00
Ave. Capacity 35%