Chapter 1

Marketing Aspect

Marketing is one of the most important factor to be considered in engaging in any

business and it sets as an organizational function in communicating and delivering
value to the customers. It is something that covers all related systems with the aim to
plan and determine the price, promotion and distribution of goods and services that can
truly satisfy the needs of actual and potential buyers.
Human needs are the basis of modern marketing. In order to understand more
about the consumers, marketers need to know what factors can influence their
purchasing behavior in order to provide quality goods and services and also to satisfy
their needs and wants. The marketers ability to position products appropriately in the
market is the major determinant of higher profit.
This chapter shows the information about the product and the market of the
Babys Water Refilling.
Market
The target market is the growing household population of Barangay Apokon,
Tagum City.
Location
The proposed business is located at Villa Consuelo, Barangay Apokon, Tagum
City.

Demand
The proponents conducted a research about the household population of
Barangay Mankilam, Tagum City. Based also on the conducted interview of the 50
households, 35 of them responded that they prefer to buy dumoy water, 3 gallons in a
week. There are 4 weeks in a month which leads to the result of 12 times in their actual
purchases per month. So, the proponents used this basis for the whole household
population of the barangay as to their preference to purchase dumoy water in a week.
Table 1 shows the details about the total demand of dumoy water for the past three
years.
Table 1
Historical Demand
Year

2013
2014
2015

Household

Target

Average Quantity of

Total Historical

Population

Percentage of

Containers per

Demand (in

5,810
5,892
5,927

Clients (35%)
2,034
2,062
2,072

month
12
12
12

container)
292,896
296,928
298,656

Projected Demand
Table 2 shows the projected demand of meat for the next three years of
operation of the proposed business.
Table 2

Projected Demand
Year
1
2
3

Based Year
298,656
301,583
304,539

Average % Increase
0.98%
0.98%
0.98%

Projected Demand
301,583
304,539
307,523

Supply
Though Babys Water Refilling will be the one dumoy water refilling who offer
free delivery establishment in the location, the proponents gathered data about the
historical supply of the some existing competitors within Barangay Mankilam which data
are presented in Table 3.
Table 3
Historical Supply
Competitors
Sure Drop Water Refilling

2013
58,482

2014
61,560

2015
64,800

Station
Felys Water Refilling

32,490

34,200

36,000

Station
RLC Water Refilling Station
Total

51,300
139,707

51,300
147,060

54,000
154,800

Projected Supply
Table 4 shows the projected supply for the next three year. Based on the
computation, the average percentage increase is 5%.
Table 4
Projected Supply

Year
1
2
3

Based Year

Average % Increase

Total Projected

5%
5%
5%

Supply
162,540
170,667
179,200

154,800
162,540
170,667

Demand Supply Analysis

Table 5 shows the demand and supply analysis as per analysis on demand and
supply, there was a substantial number of unsatisfied demand of Babys Water
Refilling in Villa Consuello, Apokon, Tagum City, Davao del Norte.

Table 5
Demand and Supply Analysis
Year
2013
2014
2015
Year
1
2
3

Product Capacity

Demand
292,896
296,928
298,656
Demand
301,583
304,539
307,523

Supply
139,707
147,060
154,800
Supply
162,540
170,667
179,200

Unsatisfied Demand
153,189
149,868
143,856
Unsatisfied Demand
139,043
133,872
128,323

Table 6 shows the product capacity of the proposed business. As per

assumption, the market share of the business will be 20%.
Table 6
Product Capacity
Year
1
2
3

Unsatisfied Demand
139,043
133,872
128,323

Market Share
20%
20%
20%

Product Capacity(Containers)

27,809
30,791
32,081

Product & Price

Table 7 presents the prices of the products of Babys Water Refilling.
Table 7
Product & Price
(Per container)
Particulars
Container

Year 1
P20.00

Year 2
P20.00

Year 3
P20.00

Channel of Distribution
The products of Babys Water Refilling are distributed directly to the customers.

Babys Water Refilling

Promotion

Ultimate Consumers

Babys Water Refilling will be using a tarpaulin for the first year of its operation in
order for the prospected customers to be informed about the said business. It is one
way of introducing the products to its target market.