MARKET FEASIBILITY

INTRODUCTION
The heart of your business lies in its marketing. It involves getting the
right product at the right price, promoted using the right messages/media
and sold in the place (the 4ps). At the core of affective marketing is the
requirements to satisfy customers needs precisely, the closer the marketing
mix of product, price, place, and promotion are to customers requirements,
the more likely is that a business will be successful. Marketing has to
determine what customers need now and anticipate future needs in order to
design appropriate products to meet these needs.
The topic covers the following aspects; demands, supplies, demand
and supply gap analysis, marketing programs and the projected sales.
Every business is practically aspiring for productivity but practicality. In
order to last in the business world, the first thing to take into consideration is
the target market. The customers will be the key factor to achieve the
objectives of the organization. Finding opportunities and spotting the right
target market are both important in establishing a business. Knowing
customers demand and supplying them with the right product at reasonable
prices.

GENERAL OBJECTIVES

To determine the feasibility of the business.

To analyze the market demand and supply of the business.
To define the target customer of the business through market

segmentation.
To determine the marketing strategy to be applied in the business.
To determine the market potential of the business.

SPECIFIC OBJECTIVES:

INDUSTRY ANALYSIS
Grocery stores are traditional destination for consumers looking to
stock up on many of the items they use on a day-to-day basis. The need for
shoppers to replenish their pantries and refrigerator typically results in
frequent trips to the supermarket. Consumers typically have a variety of
options to choose from when deciding where to purchase items. Not only do
they often have a choice between competing neighborhood supermarkets,
but they can also shop at alternative retailers. Because of this, individuals,
parents or mostly sari-sari store owner find supermarket or grocery stores at

great convenience. The rise of merchandise industries as often been linked

with urban development, this kind of notion can be typically seen in Filipinos.

A growing wholesale retail industry

Over the past decade, the countys retail industry has grown
significantly,

benefiting

from

the

steady

economic

and

population growth, higher disposable incomes, and increasing

urbanization. This trend is expected to continue growing forward.

KEY SUCCESS FACTORS IN THE INDUSTRY

In a company such as Puregold Supermarket, innovation is important
because competition in the merchandising industry is very tight. Product
innovation is a must as it add value to the company since products are being
offered to the market for attention, acquisition or consumption that may
satisfy the need and want (e.g. packaging, promotional tools). In this case
products innovation is done to get the attention of customers and most
especially the non-customers market share of their competitors.
It is imperative for Puregold Supermarket, being in the merchandising
industry, to offer its customers with good quality products. They grow
accustomed, should be maintained and standardized, to keep the customers
hooked and coming back for more.
Pricing also is an important to consider given that the largest target
market of Puregold Supermarket is considered to be price sensitive. Any

sudden and drastic changes in price might push the customers to find other
grocery stores. And in the industry that Puregold Supermarket is in, there are
many others that can provide Puregold customers with other alternatives. It
must then be ensured that products of Puregold are priced in a way that
highlights value at the same time, still affordable to its customers.

RESEARCH METHODOLOGY
The researchers used different techniques in gathering information to
support the study.
A. SURVEY
The proponents conducted survey among 400 respondents to get
their opinion

regarding the establishment of PUREGOLD here in Talavera.

These respondents came

from the total number of population of different

barangays in Talavera, Nueva Ecija. The

survey

was

distributed

among

individual household and Sari-Sari store owners.

B. SAMPLING TECHNIQUES
The researchers used Random Sampling Technique to gather
information from the target market. Through the use of Sloven Formula,
proponents came up with the
Slovens formula:

n=

N
1+ Ne

number of respondents which is 400.

where:
n=sample size
N =sampling population
e=margin of error
Computation for the sample size
The population of Talavera last 2013(latest) is 117,752 as total.
To compute for

the sample size of this population we used a

5 margin of error. Using Slovens

n=

N
1+ Ne

n=

117572
1+(117572) 5

formula:

=398.64
By using the Slovens formula we came up to the sample size of 399
respondents which is rounded up but to increase our level of confidence we
made it 400 respondents to be exact.
C. SURVEY QUESTIONNAIRE
In order to have an accurate information data, the researchers
agreed to used questionnaire.

The researchers used the check-list format. Questions are made

for the respondents in order to get their personal opinions and willingness
regarding the proposed project. The group provided 400 copies of survey
questionnaire written in English language.
D. INTERVIEW
The researchers interviewed relevant people who is relatively
fitted to the study in addition to the information gathered in survey
questionnaires. It includes individual household and Sari-Sari store owners.
E. RESEARCH
In conducting the study, the proponents used libraries, internet
and websites as an additional source of information for the project.

MARKET SEGMENTATION
SEGMENTATION

DEMOGRAP

LIFE STAGE

HIC

GEOGRAPHI

PSYCHOGRA

BEHAVIORAL

PHIC

CHARACTERI

Age:

STICS

Gender:

15 55 years Individual

Social Class:

Male, Female

old

Middle

Household
and

Education:
All

types

Status:
of Single,

Sari

Sari

(C-Class) and Quantity

Store Lower

owner

educational

Married,

operating

attainment

Separated,

Talavera

Widowed

Class Price

Class Quality

(D-Class)

Convenience

in
Lifestyle:
These

are

individuals
whose
purchasing
decision
made
its

is
upon

personal

and

family

needs

and

consumer
preferences

in terms of a
Sari

Sari

Store
Buiness.

Personality:
Housewife
Students
Employed
Unemployed

MARKETING STRATEGY
The most critical element of Puregolds success will be its marketing
and advertising. Supermarkets or grocery stores serve the entire purchasing
population of its geographical area but focusing on customers who need to
purchase items with lower cost and a wide variety of commodities. In order
to capture customers. Many of the initial customers will be drawn to the
unique nature of the store and will then have the opportunity to realize the
cost savings of Puregold. Puregold will also use Tarpaulin in its introductory
stage as well as transit advertising, which means the use of vehicles to carry
the advertising materials for the customers to be aware of the existence of

the proposed business. Puregold will also reach out to different charitable
institutions such as orphanage, churches and organizations. Help will be
extended to those chosen charity by means of goods and financial help.

MARKETING MIX STRATEGY

PRODUCT STRATEGY
Puregold Talavera engages in retail of sale of food and non-food
products. It offers food products such as dairy products, meat and sea food
products, vegetables and fruits, beverages such as wines and liquir, and
other products used for personal consumption; and non-food products
including clothing, shoes, household chemicals, appliances, toys and sports
items.

These

food

and

non-food

products

are

arranged

in

shelves

corresponding to its uses and consumption.

PRICING STRATEGY
PLACE/DISTRIBUTION STRATEGY
Location is one of the major factors to be considered in starting up a
business. It must be assured that it is accessible to the target market. If
location is later found to be incompatible to the situation as to give
consideration to its target market, it may lead the company to failure. Right
choice of location means reaching your target customers and you respond
correctly to their market needs. Puregold Talavera will be located in an open

area at blank street, Matias, Talavera, Nueva Ecija in front of the Basketball
Court and beside Friendship Supermarket. (Kulang pa)

PROMOTION STRATEGY

TV ADVERTISEMENT

Puregold will use TV Advertisement that could attract and encourage

consumers to patronize their products. One way to increase brand popularity
is to use an effective endorsers. Eat Bulaga host Vic Sotto and Joey De Leon
are the endorsers of Puregold because they are well-known comediennes and
has the ability to portray different roles and characters effectively.

BILLBOARDS/POSTERS/TRANSIT MEDIA/FLYERS

As a franchisee of Puregold, outdoor advertisement like billboards,

posters, transit media and flyers are taking considerations to grab attention
of consumers and potential customers; it can also be cost effective for it
reaches thousands of people of Talavera on their daily basis, and message is
delivered continuously and frequently.

SALES PROMOTION

Sales promotion is another tool used by Puregold in capturing the

attention of their customers such as giving up to 50% off products, promo
packs and bonuses.

RAFFLE PROMO

Raffle ticket is another way to urge thecustomers to buy products.

Customer will purchase an additional product until they avail a raffle ticket.
This strategy has a great impact on the company whereas it create an
increase in demand of a product.

COMPETITORS PROFILE
MAIN COMPETITORS
DIRECT COMPETITORS
I. CVC-

An air-conditioned supermarket which has TV monitors endorsing

their products inside the store. They are offering different variety of products
such as groceries, meats, fruits and vegetables and some appliances. CVC
have DFL (Definite Fun Lifestyle) inside the store in which they are offering
garments, accessories and other personal uses. One of their weakness is that
the most of their products are quite expensive.
II. Savemore Supermarket-

An air-conditioned Supermarket with a wide

and convenient to shop commodities. They play quite music for their

customers. It is also like one stop shop because they are not offering grocery
products but also vegetables, fruits, meats, fishes, appliances, garments,
cosmetics and they also have Watsons inside. They have a comfort room
inside the building for their customers, they are also offering different cards
for discount. The said supermarket has many customers because they
offered variety of products. The groceries they offering is more expensive
than other grocery/supermarket near them.
III. Friendship Supermarket Friendship are offering school supplies/
office supplies, toys/stuff toys, furniture, accessories, garments, kitchen
utensils, gadgets, and a little car toy where a kid can ride it to the corner of
the building. Friendship Supermarket is a second floor and have elevator
when you can go up and down. The size of it is wide but dont have air
condition. They have many customers, because the price of their products is
cheap. Some of the retailers bought their commodities here to resale.
IV. Myra Grocery Store Myra is not a supermarket but only a grocery
store. The grocery store is not too large in terms of space inside. Not too
convenient to shop because they only have two (2) counters and they only
have few electric fans. They offered grocery products. Even thought they
have a little problem to their equipments or the satisfaction of the
customers, they also have many customers. It is compatible to those
retailers who buy commodities or their business because the price of their
products is cheap.

V. 7MM Grocery Store Some of the time, when we say grocery stores the
customers are one who get the products they buy. But in this kind of grocery
store, they are the one who gives you the products you want to buy because
the customers are not allowed to go inside. The products they sell is limited
not like the others. They have only few customers. The price of their products
is cheap you would see this grocery store at the front of Friendship and
beside 7MM Drugstore.

COMPETITIVE EDGE
Puregold

is

currently

one

of

the

largest

and

fastest

growing

hypermarket and supermarket chains in the country. With the success of

Puregold, competitors might decide to replicate the companys business
model. Puregolds current scale, extensive experience and established brand
name are some of the advantage over other players. Puregold focuses on
resellers; targeting the lower income segments.

BARRIERS TO ENTRY

BARGAINING POWER OF CONSUMERS

The prices of the products and services have become the
standard of how consumers would want to spend on groceries.
Anything above the price range would be considered expensive,

while anything lower would mean its cheap. Most consumers

think that the prices by the grocery stores are reasonable and
affordable because they offer value products and other pricing
strategies. This just goes to show that the consumers in this
industry really do not have much bargaining as they think they
do.

BARGAINING POWER OF SUPPLIERS

This force represents the power of suppliers that can be
influenced by major grocery chains and that fear of losing
(influenced by major) their business to the large Supermarket.
Therefore, this consolidates further leading positions of stores
like Puregold in negotiating better promotional prices from
suppliers that small individual chains are unable. In return,
Philippine based suppliers are also threatened by the growing
ability of large retailers source their products from abroad at
cheaper deals. The forces of competitive rivalry have reduced
the profit margins for Supermarket chain and suppliers.

THREAT OF SUBSTITUTE PRODUCTS

Great substitution is able to reduce demand for a particular
product, as there is a threat of customers switching to the
alternatives. In the grocery industry this can be seen in the form
of product for product or the substitute of needand is further
weakend by new trends.

EXTERNAL ASSESSMENT
PESTEL ANALYSIS
Political Factors
For employment legislations, the government encourages wholesalers
and retailers to provide or mix of job opportunities from flexible, lower-paid
and locally-based jobs to highly skilled, higher paid and centrally-located
jobs. Puregold Supermarket understands that wholesaling and retailing has a
great impact on jobs and standard living of people within the community
being on inherently local and labor-intensive sector. Puregold employs High
School Graduate that could be in qualified for the position such as cashier,
bagger, clerk and others.
Political factors include possible difficulties in obtaining regulatory or
local government approvals and distributing or transporting inventories.
Puregold also experienced difficulty in building its brand and location. While
the risk maybe substantial, PUREGOLD believes that the risk are worth taking
given its growth potential.
Economic Factors
Economic factors are of concern of PUREGOLD because they are likely
to influence demand, cost, prices and profits. Increase in unemployed people
create decrease demand for many goods, adversely affecting the demand
required to produced such goods. These economic factors are largely outside

the control of the company, it affects food market, and are exposed to
market concentration risk. PUREGOLD overcome this economic factors by
improving standing living of people through employment.
Social/Cultural Factors
Filipino customers considered one-stop and bulk shopping, which is
due to a variety of social changes. Therefore, PUREGOLD increase the
amount of non-food items available for sale such as kitchen utensils,
household appliances, and apparels. Also, the types of goods and services
demanded by consumers is a function of their social conditioning and theyre
attitudes and beliefs. These are the reasons why PUREGOLD focuses towards
the own-label share of marketing strategy which can drive costs of the
business.
Technological Factors
Another major macro-environmental variable to consider is the
development of new technologies which have great benefit both in
customers and the company: customer satisfaction rises because goods are
readily adapted new technologies such as Electronic Point of Sale (EPOS),
Electric Funds Transfer Systems (EFTPOS) and Electronic Scanners.
Environmental Factors
As a manager of a company, various responsibilities will occur, such as
responsibility to its employees, suppliers, and the company responsibility to

its society. The major societal issue threatening food industry has been
environmental issues, a key for company to act in a socially responsive way.
PUREGOLD sets various regulation and corporate governance in order to
accompany this corporate social responsibility.

TECHNICAL STUDY
INTRODUCTION

OBJECTIVES

A. PRODUCT DESCRIPTION
PRODUCT NUMBER
1A
1B
2A
2B

TITLE
Appliances
Furnitures
Linen
Soft and Hard Candies
Local Chocolates

3A

Mallows/Jellies
Imported Cookies

and

Biscuit
Local
3B

Cookies

Biscuit
Native Biscuit

and

DESCRIPTION

Wafers
4A

Pretzels
Local Snacks

4B

Imported Snacks
Popcorn
Dried mangos

5A

Raisins
Local Snack

5B

Nuts
Canned Vegetables
Canned Fruits

6A
6B
7A
7B

Native Preserves
Canned Meat
Canned Fish
Instant Noodles
Cup Noodles
Soup

8A

Pansit
Catsup
Sauces

8B
9A

Pasta
Seasonings
Toys
Ladies Wear

9B

Mens Wear
Bags

10A
10B

Footwear
Baby Diaper
Adult Diaper
Alcohol

Feminine Care
Cotton
11A
11B
12A
12B
13A
13B
14A

Baby Toiletries
Dental Care
Health Care
Bath Soap
Laundry
Household Maintenance
Tissue Disposables
Doy and Tetra Packed

14B

Juices
Canned Juices
Powdered Iced Tea

15A

Powdered Juice
Creamer

15B

Coffee
Choco Drink

16A

Regular Milk
All-purpose cream
Culinary Milk
Cereals

16B

A.1 PRODUCT PRICING

Oats
Bread fill

A.2 PRODUCTION/OPERATIONAL PROCESS

MANUFACTURER

DISTRIBUTOR

RETAILER

SARI-SARI STORE

INDIVIDUAL

A.3 FLOW CHART OF SERVICE

GREETINGS

ACCOMODATION AND PRODUCT

FALLING IN LINE
PUNCHING
RECEIVING
PAYMENT
THE

PROCESS FLOW DIAGRAM

STEP 1: Anyone who walks in by the store is considered as a customer
and will be treated special

and welcomed by the employees with a

smile and respect

STEP 2: Salesperson will accommodate the customer and will guide
her to her destination and

tell her where she can get the

product
STEP 3: After the selection of the products, the customer will fall in
line to the counter
STEP 4: The cashier will punch the product

STEP 5: The customer will pay the price

STEP 6: After accepting the payment, the bagger will place the
products according to the

customer wants, either a box or a

paper bag

B. BUSINESS PROCESS
The start of the stores operation will be 8:00 am in the morning
to 6:00 pm in the afternoon, Monday to Sunday. The personnel and assigned
salesperson must be on time, at least thirty (30) minutes before the opening
of the store.

C. BUSINESS LOCATION
C.1 Vicinity Map
C.2 Floor Plan

D. MACHINERIES AND EQUIPMENT

E. OFFICE SUPPLIES
F. STORE UNIFORM

G. UTILITIES REQUIREMENTS