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FEASIBILITY STUMARKET STUDY

Marketing is a system of business activities designed to plan, price, and promote and distribute
want-satisfying goods and services to present and potential customers. It is considered as the lifeblood
of every business transactions because it is a strategic way on how to cope up to the needs and wants of the
costumers, finding opportunities regarding it, introduce and market the product, achieve customers loyalty
and patronage.
This aspect includes the following topics: demands, supply, demand and supply analysis, marketing mix,
factors affecting the market and the SWOT analysis. The objective of the proposed project is to delight
the customers, not just by meeting their expectation but rather exceeding and going extra mile.
Moreover, its about profitability. Marketing aspect serves as the basis of the financial section through
the projected demand. There can be no discussion of profitability or of the other aspects of the study; if in the first
place, there is no demand or market. Every business is practically aspiring for productivity but practically
in order to grow and last in the business world the first thing to take into consideration is the target
market. Customers are the key factors of every business in order to achieve the objectives of the
organizations. Identifying the market opportunities and selecting the right market are both important in
putting up a business. Knowing the company customers demand and supplying them the right products
at reasonable prices.

Demand Analysis
Demand is the source of many useful insights for business decision making. The success and
failure of business firms depend primarily on its ability to generate resources by satisfying the demand
of consumers.
The carefully study of potential market and determining its potential demand are the first step
in determining the market opportunities of the business. Defining the demand of the product within the
wider consumer market is an important. It will help business to develop effective strategies to promote
and sell the product to as many potential customers as possible. Market demand is the total volume of a
product or service that would be bought by a consumer group where the location, time period and
marketing effort are defined. Market demand can depend on environmental factors as well, such as the
sales of a related product or service or the current economic conditions.











Demand
84% are willing
16% are not
Supply Analysis
Competitors Market Share
Silvers by gold 17.24%
I <3 milk tea 25.86%
Others 56.9%
100%



















Demand Supply Analysis
By conducting interviews and survey by the proponents, the company determines the demand
on the market. The proponents asked 100 respondents from Alaminos City if they avail or buy product
and services from Big Smile Caf, 84% agreed and willing to buy and the remaining 16% did not agree.

Marketing Program
Marketing Mix
Price Study
The Big Smile Caf is considered the price as high and low depending on the value of the product. The
price vary depend on the customers that will satisfy their needs and wants. The Big Smile Caf is
considered competitors based.
Product Study
The Big Smile Cafe creates a product offering that will satisfy their target market. A
product consists of anything that is of value to a consumer and can be offered through a voluntary
marketing exchange. A Company offers variety of products like frappe, milk teas, hot beverages,
desserts like bakery pastries, light meals etc.
Market Share
Silvers by Gold
I <3 Milk Tea
Others
A product's customer value, actual product and associated services are all contained in the product
definition of Big Smile cafe. For example, Big Smile Cafe offers coffee drinks, which deliver the value of
quenching a consumer's thirst, as their main product. The shop also offers associated services, such as
free WiFi, newspapers and musical offerings.

Place Study

The Big Smile Caf situated in very possible location where some business can be generated.This is a
prime factor in determining the success of a retail chain. Big Smile Cafe looks to cater to the target
market with strategically located outlets.

Location is one of the most important things to consider in business. The outlet is generally located
in High Street/ Family Entertainment Centers, gas stations, near Colleges etc. It is very convenient for
the customers to visit the Caf since the location is in the city proper. This will help the business grow
with prospective customer as it attracts people because of the location and give people advantages to
experience the ambiance of the place while enjoying the good choice of beverages that Caf offers.

Promotion Study
The Big Smile Caf advertising and promotion will take a number of avenues. First, increase visibility
online, company set-up a website or social media pages where they can post materials related to the
coffee business. They can also post announcements on the website for special offers and contests. Post
Company details on the site such as your coffee shop name, logo, location and telephone numbers.
Second, proper distribution of advertising products like flyers, posters, business card etc. that will be
distributed on the entire areas of the city and near towns to create a customer-generating mechanism
that the company can access any time to attract more customers.

Factors affecting the Market
There are many factors that can potentially affect the market and the overall operation of a micro-
business. Some of the factors that you need to consider include;

Economic and Industry Conditions - The state of the current economy can affect the markey,
since it is related to consumer spending. The four stages of the economy cycle through
prosperity, recession, depression and recovery. Consumers spend more during the prosperity
stage than in the depression stage, which is when the lowest amount of consumer spending
takes place. The marketing campaign, product offerings, and pricing must take into account the
current economic cycle to be successful.
Competitions
There four types of Competition
- Pure competition, many sellers with identical products
- Monopolistic competition, many sellers with similar products
- Oligopoly, a few companies control the industry
- Monopoly, when one firm sells the product.
Identifying competitors and evaluating their strategies by determining the strengths and weaknesses
relatively to the business and products will have company increase its market share.
Social and Cultural Issues - These somewhat different factors that have diverse effects on the
decisions of consumers and buyers. Basically, socio-cultural factors are customs, lifestyles and values
that characterize a society. More specifically, cultural aspects include aesthetics, education,
language, law and politics, religion, social organizations, technology and material culture, values and
attitudes. Social factors include reference groups, family, role and status in the society. Small-
business owners should be aware of and understand these factors connection with buying habits.
Logo














SWOT Analysis

SWOT analysis stand for: Strength (S) and Weakness (W) is a part of the internal environment of
the business. The Opportunities (O), Threats (T) is the part of the external environment. Strengths are
positive factors which will help the business to achieve its result areas. Weaknesses are negative factors
which may hinder the attainment of the business. Opportunities are the positive situation which may
dampen its position in the industry. Analysis on the strategic environment its referred to as SWOT
analysis.
Strength
Good quality and service
-
Affordable price
-
Accessible
-
Weaknesses
Newly establish in the market
-
Hard to convince customers
-
Starting cost is high
-
Opportunities
Expansion of the business
-
New products and service
-
Gain greater income and profit
-
Threats
Competitor
-
Changing market condition
-
Shortage of raw materials from suppliers
-

Competitor Analysis
One of the main competitors of Big Smile Caf is Silvers by Gold that have strong brand
recognition, with high product quality and well-documented processes on how the business should be
run. However, they have the operating boundaries that dont give them the flexibility to change menu
items so easily. This flexibility is something Big Smile Cafe can take advantage of with having a chef who
can develop new menu items to meet the changing preferences of customers. Offer some array of food
options like light meal for breakfast, snacks etc. for consumers to divulge while they are sipping on the
beverages that Big Smile offering. The warm, cozy feeling is one of the most key features in the Caf
that the company wants to experience by the prospective customers. For teenagers and young adults, it
is somewhere that they can gather with friends and engage in conversation but this is not the marketing
strategy of Silvers by Gold in competing in.















Technical Strategy

After having determined the market size and area, product demand and growth, the potential
and technical feasibility of the project may be analyzed. This stage deals with the allocation of resources
that will be needed in order to satisfy the market. The technical soundness analysis will be considered
complete if all pertinent technical aspect of the project have been taken into account in the analysis and
if the planned construction or procurement conforms to accepted standards and practices. The estimated cost of
the project should be as low as any other reasonably available alternate which would produce the intended
results. The objective of this portion of the feasibility study is to determine to what extent the project meets the
technical soundness criteria.

Product Description
Big Smile Caf is designed to offer a daily necessity for local coffee addicts, a place to dream of as you
try to escape the daily stresses of life and just a comfortable place to meet your friends or to. The Big
Smile Caf will offer its customers the best tasting coffee beverages in the area. This will be achieved by
using high-quality ingredients and strictly following preparation guidelines.
The Big Smile Caf will carry a variety of quality products that will enable the company to provide a good
choice of beverages that will satisfy customers craves. The underlying philosophy in selecting products is
to choose lines that will bring consistent quality, competitive prices, and product satisfaction to the
customers.
The Big Smile Caf offers the following:
A Frappe is an iced beverage that has been shaken, blended or beaten to produce tasty foam
and refreshing blended drink which is served cold, often with whipped cream and toppings. A
Frappe is also a cool refresher on hot days for coffee lovers. Frappe includes the following menu
like pumpkin pie frappe, caramel apple frappe, cappuccino frappe, caramel cappuccino, peanut
buttercup frappe, chocolate frappe and vanilla cappuccino frappe.
A Milk Tea is a tea mixed with milk. Company offers flavorings like black forest, cookies n cream,
cappuccino.
The Big Smile Caf offers Flavored Based Drink like Hot Chocolate and Steamers, these drinks
are made like lattes and mochas without the addition of coffee. Flavored syrups are added to
steamed milk and may be topped with whipped cream at the customer's request.
Company will also offer its customers a variety of baked goods, including pastries, cookies, and
cakes. Bread for sandwiches and buns etc.
The Big Smile Caf offers other light meals like egg and cheddar meal fast sandwich, ham and
cheddar, sausage and cheddar, fries, chick and chips and nachos.







































Pumpkin Pie Frappe
Caramel Cappuccino Frappe Cappuccino Frappe
Choc chip frappe Vanilla cappuccino frappe
Caramel apple frappe

Peanut Butter Cup-puccino
Frappe
Raspberry Truffle Cappuccino
Frappe
Green Tea Frappe






















Product Process


Start
Cleaning Utensils and
Materials
Preparation of Ingredients
Winter Melon Milk Tea
Strawberry Milk Tea Black Forest Milk Tea
Watermelon Milk Tea Caramel Milk Tea
Mocha Milk Tea
Original Pearl Milk Tea
Cookies and Cream Milk Tea



It shows that the product process daily operation starts with cleaning the utensils
and materials needed. When the utensils or materials already clean, then preparing the
ingredients needed is the next step. Next is the cooking/mixing then adding/flavoring to
make sure that the flavor we serve is more flavoring and presentable and then serve.
Service Process


Cooking/mixing
Adding/Flavoring
Serve
Start
Ask for customers order
Customer Response







Facilities and Equipment

Espresso

Coffee Mixer





Prepare for
customers order
Acceptance for
customers payment
Exit
An espresso machine is a device that brews coffee by forcing
pressurized water near boiling point through a "puck" of ground
coffee and a filter in order to produce a thick, concentrated
coffee called espresso that is the base for many traditional Italian
coffee beverages.

Coffeemakers or coffee machines are cooking appliances used to
brew coffee.

Blender




Microwave




Oven










Plant Layout

Utilities and Waste Disposal
The Big Smile Caf generate a massive amount of solid wastes including paper, cardboard,
plastics, wood, food wastes, glass, metals, special wastes and hazardous wastes. In order to increase
profit margins without affecting your customers dining experience that is important to the survival of all
restaurants, the Big Smile Caf practice recycling and waste prevention. By implementing a simple yet
A blender is a kitchen and laboratory appliance used to mix, puree,
or emulsify food and other substances. A stationary blender consists of
a blender jar with a rotating metal blade at the bottom, powered by an
electric motor in the base.

Microwave is a kitchen appliance that heats food by
bombarding it with electromagnetic radiation in
the microwave spectrum causing polarized molecules in the
food to rotate and build up thermal energy in a process
known as dielectric heating.

An oven is a thermally insulated chamber used for
the heating, baking or drying of a substance and most
commonly used for cooking.

efficient waste management programs like assessing and monitoring the types and amounts of garbage
thrown away each day can lead to significant savings for the restaurant. Training is an essential part of a
successful waste reduction program, recycling does not naturally occurred for many people it takes time
to learn and experience on how it will happen. By integrating waste reduction into all training programs
for the staffs will ensure accepted and successful sustainability programs for waste management of the
Caf.