CHAPTER III

MARKETING ASPECT
Marketing aspect is a study of the market by environmental scanning through
interviews and various data collection. It is a process of how the product will be
distributed to the consumer. The marketing aspect is considered the most important
area because it describes market situations where the product can be identified through
the demand analysis. It is through marketing aspect wherein business decision makers
identify potentially successful product for the market and compete it with the
competitors.
A marketing strategy is how the business decision maker finds ways in keeping
their product demandable in the market. It is also a process on how to compete with the
competitors. A good marketing strategy is when you know your customer and
consumers needs, what they want, and the importance of the product in their everyday
life. One goal of marketing strategy is to persuade the market to patronize your product.

TARGET MARKET
Creating a product that is new to the market is a challenging job especially if the
product has already an existing competitor. Some consumers are already satisfied with
a certain product and it is hard for the businessmen to endorse their product to them. It
really needs a good marketing strategy in order to catch the consumers interest. Thus,
the study is conducted to different respondents in different areas. The target markets
are the students from different department of University of San Jose Recoletos.

POPULATION OF TARGET MARKET AND RESPONDENTS

The researchers have decided that out of the 7,206 students in University of San
Jose Recoletos main campus as of school year 2016-2017, 365 students are to be the
target market. 71, 218, 4, and 72 of them are from the College of Arts and Sciences,
College of Commerce, College of Nursing, and College of Engineering respectively. The
sample size of the respondents is determined using the Cochran's formula for
categorical data.
Table1
Population and respondents
Colleges

Population of Students

Sample size

Commerce

4,301

218

Arts and Sciences

1,400

71

Engineering

1,428

72

Nursing

77

Total population

7,206

365

The method used in computing for the sample size which is the Cochrans method for
categorical data has the alpha level of .05(error of 5%). .05 or 5% error indicates the
level of risk the researcher is willing to take that true time margin of error may exceed
the acceptable margin of error.
FORMULA:

Where: t= value for selected alpha level of .025 in each tail

p= estimated proportion of an attribute that is present in the population
q= 1-p
(p)(q)= estimate of variance
d= acceptable margin error for proportion being estimated
the proponents used margin of error of 5%

(1.96)2( .05 ) (.05)

(.05)2

.9604
.0025

= 384
For N

10 000

Cochrans correction formula:

384
384
1+
7206

384
= 1+.0533
= 365
Computation of Sample size per college
% sampling population = (365/7206)*100

= 5.065% * total population per college

Commerce

= 5.065% * 4301 = 218

Arts and Sciences = 5.065% * 1400 = 71

Engineering

= 5.065% * 1428 = 72

Nursing

= 5.065% * 77

Total:

= 4____
365

DEMAND
Demand is the amount that consumers are willing to buy or purchase of a
particular economic goods and services. As one of the two key determinant of the
market price, demand will always change. Usually, the demand of a certain product or
service will tend to increase if the price decreases. One of the factors that affect the
demand other than price is the, substitute goods or complementary goods of the
products and services. Through this, demand is not all the time consistent in terms of
the numbers. Businessmen will also be guided as to what production level they will
perform and the number of products or services they will supply through the demand of
the customers.
In determining the demand of the target market for the proposed project, related
and viable data were collected through distributing questionnaire to respective
respondents. The responses are presented in the following tables.
Whether or Not the Respondent Uses Jam

The respondents were asked if the respondents use jam as their filling.
Table 1 represents the response of the respondents.
Table 2
Whether or Not the Respondents Uses Jam
N= 365

Responses

Frequency

Percentage

Respondents who use jam

Respondents who do not uses jam
TOTAL
Table 2 shows that???of the all respondents use jam as one of their filling.
Flavors of Jam
The respondents were asked as to the flavors of jam they would like to consume.
Table 2 shows the result from the survey.
Table 3
Flavors of jam
N= 365

Kind of jam

Number

Rank

Strawberry jam
Pineapple jam
blue raspberry jam
red raspberry jam
Guava jam
Mango jam
Chocolate jam
TOTAL
Based on the table 3, the respondent consumed ??.
Number of bottles consumed in a month
The respondents were asked as to how many bottles they will buy in a month.
Table 4 shows the result from the survey.
Table 4
Number of Bottles Ordered per Month
N= 365

Number of Bottles Ordered per Month

1

Number of Respondents

Frequency

2
3
4
5
Total
Based on the result of the survey conducted, the respondents are willing to buy
(number) or (%) in a month.
Willingness of the Respondents to Use Pineapple Malunggay Jam
The respondents were asked if they are willing to use or not the Pineapple
Malunggay Jam Filling. The table 5 shows the result of the survey.
Table 5
Willingness of the Respondent to Buy Pineapple Malunggay Jam Filling
n =???

Response
Willing to buy Pineapple Malunggay Jam
Not willing to buy Pineapple Malunggay Jam
Unsure to buy Pineapple Malunggay Jam

Frequency

Percentage

TOTAL
Table 5 shows that???of the respondents ???
Average Annual Demand
A computation of the average annual demand is needed in order to determine the
projected annual demand of the proposed product. Survey is the proponents way of
gathering data which is needed in order to possibly compute the average annual
demand of the proposed product. Table 6, on the succeeding pages, shows the
computation of the average annual demand.
Table 6
Average Annual Demand for 300 mL
n = ??

Number of Bottles Ordered per

Month
(300 ml)
1
2
3
4

Number of
Respondents

Monthly Demand in Bottles

(300ml)

5
Total
Average Monthly Demand
Multiply by: Month in a year
Average Annual Demand
Based on the result of the survey conducted, the responses of the respondents to
the proposed product results to an average annual demand of ??bottles of 300 ml per
year.
Establishments Where the Respondents Want to Purchase the Pineapple
Malunggay Jam
Table 6 below shows the collected data with regards to where the
respondents would want the proposed product are made accessible for them. It is
important to determine the preferred establishment of the prospective customers for it
will effectually produce more sales and will permit them to accessibly acquire the
product at place nearest to them.
Table 7
Establishments Where the Respondents Want to Purchase the Pineapple
Malunggay Jam
n= ??

Establishment

Frequency

Percentage

Rank

Malls
Sari-sari Stores
Supplier
Table 7 shows that ??of the respondents wanted the proposed product be available
on, which means the researchers must prioritize in selling their products in the ??.
Price range of the 300ml Pineapple Malunggay Jam Filling
The respondents were asked as to the price range of the 300ml Pineapple
Malunggay JamFilling. The results are presented in table 8.

Table 8
Price range of the 300ml Pineapple Malunggay Jam Filling
n =???

Price range
Php 50.00- Php 60.00
Php 61.00 - Php 90.00
Php 91.00 - Php 120.00

Frequency

Percentage

Php 121.00 - and above

TOTAL
Table 8 shows that ???of the respondents wants to have the Pineapple
Malunggay JamFilling to be priced at ???.
PROJECTED ANNUAL DEMAND
Businessmen are needed to have a projection of the demand of their products or
services in order to know if the products or services will be allocated well or will reached
to the target markets. In regards to project demand, the result of the survey in University
of San Jose Recoletos as presented in the previous table were used to determine the
expected demand of the Pineapple Malunggay Jam.
Growth Factor rate
The data presented below were gathered from the office of the registrar of the
University of San Jose Recoletos. The data are the population of the students in main
campus for the past five years. It is used in gathering information and computation of
projected demand. Table 9 shows the average annual increase/decrease of college
students in University of San Jose Recoletos.
Table 9
Annual average increase/decrease in students population
School Year

Total Population

2012-2013

9,361

Increase/ Decrease

percentage

2013-2014

9,281

(80)

(.85)%

2014-2015

9,525

244

2.53%

2015-2016

9,422

(103)

(1.08)%

2016-2017

7,206

(2,216)

(23.52)%

Total

44,795

(2,175)

(22.92)%

Average

8,958

(544)

(5.73)%

Table 9 shows that there is a decrease in weighted average of population. The decrease
of 2,175 resulted from the implementation of K-12 education program that started this
year. The school has no 1st year students because of the K-12 program.
Table 10
Projected Population of Students for the Next Five (5) Years

school

PRIOR

Growth

Current

Average

PROJECTED

year

YEAR

Rate*

Population

Ratio

NUMBER OF

(Population
)

20172018

20182019

20192020

STUDENTS

20202021

20212022

Projected Annual Demand

After the projected population of students were determined in table 10 for
the next five years, these were multiplied with the percentage of demand which is ??
from Table 5 and the resulting projected demand is shown in Table 11, next page.
Table 11
Projected Annual Demand

School

Total

Percentag

Projected

Price

Averag

Projecte

Year

Project

e of

responden

range

ed

Demand

ts who are

of the

Annual

Annual

willing to

Produc

Deman

Demand

buy

d per

Popula
tion

(Table 6 )

(Table

(Table

10)

8)

Volum
e
(Table

6)

2017 2018

2018 2019
2019 2020
2020 2021
20212022
SUPPLY
Supply is the quantity of products available for sale to the market at a reasonable
price. It is the ability of the suppliers to provide the products or goods that they produce

at a definite time. Other than demand, supply is one of the two key determinants of
market price. Supply and demand always meets as it is the supply of the products are
the reason why there is a demand from the customers.
PROJECTED ANNUAL SUPPLY
The researchers assumed the competitors sales percentage as ??.the
percentage was taken from the data gathered on the flavors of jam the respondents
would want to consume as shown in table 2. ???are the flavor of jam that most
consumers would like consume. The total percentage of ??will then be multiplied to the
projected annual demand which results to the projected annual supply for the next 5
years.
Table 12
Projected Annual Supply

Year

201
8
201
9
202

Projected Annual

Competitors Sales

Demand

Percentage

(Table 10)

(table 2)

Projected Annual
Supply in Units

0
202
1
202
2
PROJECTED DEMAND AND SUPPLY GAP ANALYSIS
Demand supply gap analysis is an assessment tool in enabling the company in
comparing the interaction or flow of the supply and demand. It serves as a determinant
in decision making. It guides the businessmen on what and how many products or
goods that can be readably sold to the market. The gap between the demand and
supply are actually the demands that are not yet met.
Table 13
Projected demand and supply gap analysis

Year

Projected Annual

Projected Annual Supply in

Demand Supply

Demand

Units

Gap

(Table 11)

(Table 12)

a
2
018

a-b

2
019
2
020
2
021
2
022
Table 12 shows that there is a ???

PROJECTED MARKET SHARE

Market share is the percentage that a business has of the total sales for a
specific commodity or service in its industry. it also determines the competitiveness of
the business compared to its competitors.
The formula as shown below used to measure the market share of the proposed
product.
Projected Annual Share
= annual production capacity or demand and supply gap (whichever is
lower)projected annual demand

Table 14
Projected Market Share

SchoolYea

Projected

Demand and

Production

Potential

Annual Demand

Supply Gap

Capacity

Market Share

(Table 11)

(Table 13)

(Table 2)

Units

2017-2018
2018-2019
2019-2020
2020-2021
2021-2022
Table 13 shows the market share of the proposed product out of the total
demand for the next five years.

MARKETING STRATEGY
Marketing strategy is used by the business decision maker in perusing the
market to consume or use their product. It is a strategy wherein decision maker will
have to do something in order to keep the product demandable in the market. Business
decision makers will have to have a marketing strategy in order to compete with the
competitors and persuade the customer and consumers to buy the product.

Advertising and Promotion

Advertising is an act of informing the people or customer about the
product. Through advertising, the consumer will be able to know the quality of the
product if it is worth the money or not. Through advertising, the businessmen have the
chance to sell, promote, and showcase the product to the market.
Advertising paves the way of LezatsPialunggay (Pineapple Malunggay
Jam)to be introduced to the market to be known to the consumer, and to generate
sales. The name Lezat came from the Indonesian word Lezat, which means delicious
and Pialunggay comes from the combination of Pineapple and Malunggay. Spread the
good vibes will be the tagline of the proposed product.
The researchers will conduct a free tasting in the designated location
where the survey was conducted which at the University of San Jose Recoletos and
around Colon Street Cebu City. The product will also be introduced through social
media by creating a facebook page.
P I C T U R E OF THE FACEBOOK PAGE H E R E!!!
Packaging and Product Design
The packaging as well as the design gives a great impact to the product. Aside
from the quality of the product, consumers will also get attracted to the way the product
has been presented physically. The product must be attractive enough for the consumer
to take time to look the product. Aside from that, packaging is important for protecting
the product from deteriorating. The product will be put in glass jam jars and enclosed

with a print. The print will contain the name of the product, main ingredients,
manufacturing, best before, and consume date, nutritional fact, volume, and
manufacturers name and address. The best before date must be ????to its actual
expiry date. The product is sealed with a word Keep Refrigerated so as to prevent the
product spoiling.
P I C T U R E OF THE PRODUCT HERE!!
Term of Sale
In order to have a faster transaction of sale from the consumer, term of sale must
be applied effectively. It is advisable to have the transaction in a cash basis in order to
suffice the flow of operation of the business.
Channel of Distribution
The channel of distribution is the stage which the product will be allocated from
the manufacturer to the market, or if payments, from customer to the manufacturer.
Channel of distribution may be done in either direct or indirect transaction. Transaction
happened between the manufacturer to customer is a direct transaction. Indirect
transaction on the other hand, is when the product will be channeled from the
manufacturer to wholesalers, retailer, and agents up to the consumers.
The researchers will use the two transactions. The proposed Pineapple
Malunggay Jamwill be distributed in different areas in Cebu City.
Pricing policy

Pricing is a process where researchers will set a reasonable price for the
product. There are factors to consider in setting up a reasonable price. The cost in the
production of the product, the demand of the product, seasonal adjustments, type of
consumers that will consume the product, and other external factors that may affect the
product.
Cost pricing is a cost based method for setting values of goods and services. In
this method, direct materials, direct labor, and overhead cost will be added together, and
add a markup percentage in order to arrive a reasonable price of the product.
Based on table 7, the respondents preferred to have the Pineapple Malunggay
Jam be priced at Php???. the researcher measured the cost incurred n the production,
as well as the procurement of raw materials, labor, and overhead, and a mark-up of
20% which resulted to a final selling price of Php ???.the computation is shown below.
Direct Materials

P xxx.xx

Direct Labor

xxx.xx

Factory Overhead

xxx.xx

Manufacturing Cost
Divide: Expected Units Produced
Unit Cost
Add: 20% Mark- up

Pxxx.xx
xxx.xx
Pxxx.xx
xxx.xx

Selling Price
Add: 3% Percentage Tax
Final Selling Price

Pxxx.xx
xxx.xx
Pxxx.xx