Le Circuit Mobile Bar Market

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Introduction

Market study should be conducted first because it will determine the success of a

business. It is where you can substantiate through research that adequate demand for your service

exist, or if you can attain sufficient quantity to meet expected demand that will determine if your

service is feasible or if continuing to the next step into the feasibility would still be practical.

Customers willingness to go bar and avail of the services is the cornerstone for the

survival of the business. Giving thorough notice to the market study, this will be achieved. The

study head into the demand, appropriate marketing program, the supply and demand condition,

prices and factors affecting the market.

I. SERVICE DESCRIPTION

To be patronized, the business should be named in such a way that people can easily

remember it. And a business name is a big factor in the success of every business nowadays. It

has a big impact on the market and helps business to attract customers.

Le Circuit mobile bar shall engage in both food and drinks and also KTV services. It is

primarily focused in providing easy and comfortable way for those who want to party and want

to see the tourist spots here in Baguio City.

A lot of party goers do not only stay in one bar at one night, they prefer to do what they

call bar hopping wherein they go to another bar after the other for their satisfaction. Le Circuit

Mobile Bar promotes tourism in the city that is why we thought of a service where tourists spots

in Baguio City are considered in the itinerary of our bus at the same time they are enjoying their

selves having party all night inside the bus and at the same time they can enjoy our KTV services
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with their friends. And with those places included in the itinerary they will have a bar hopping

experience by staying only in one bar wherein the customers are given the chance to save their

money but with fulfilled satisfaction.

A. Name of the Service

Our business name is Le Circuit Mobile Bar. Le means the and Circuit means a

periodical journey around an area. The name of our business will already give you the idea of

what kind of services are we offering once you read this. We considered these words in order for

our business name to be unique and catchy to the people. We chose this kind of business not only

to gain profit but to give a comfortable ride to those who want to enjoy disco bar inside a bus. Le

Circuit itinerary includes Session Road, Harrison Road, Baguio Botanical Garden, Burnham

Park, Camp John Hay, Mines View Park, Philippine Military Academy, The Mansion, and Wright

Park.

Business Logo

Slogan: A ride that brings you FUN!

A logo is a graphic mark commonly used by commercial enterprises, organizations and

even individuals to aid and promote instant public recognition.

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For colors:

Pink represents that the researchers who are conducting this study are all females

Yellow represents happiness

We designed our logo in a round shape because it shows that our mobile bar goes around

the city by having its own route, a wine glass in the center which shows that we offer the best

mixed drinks and shadows of girls dancing shows the fun that you will feel when you are inside

our mobile bar.

B. Services offered

Le Circuit includes amenities that are guaranteed to give you and your friends a grandiose

experience, fit for your exuberant and lavish lifestyles. Le Circuit is equipped with a videoke

equipment system that contains a wide variety of songs from local and foreign artists. To top it

all off, Le Circuit boasts of a top-of-the-line sound system, with matching dazzling lighting

effects, that is sure to make you groove to the music. Our music library features thousands of

songs. We allotted a space as a dance floor where people can dance inside the bus like when you

are inside the disco bar and we also provide a DJ which will make the dance floor awesome. You

will truly live like a star inside Le Circuit.

It also has a variety of connectors and chargers for almost all units of mobile phones. For

sustenance, Le Circuit is outfitted with a mini-fridge that will chill your favorite beverages like

cocktails, beer, and brandy. We also serve food which is pica-pica. Lastly, a chauffeur is provided

who will be at your disposal to make sure you get to your destination safe and on time.
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C. Properties of the service
Le Circuit Mobile Bar will cater to patrons who seek for leisure and entertainment. The

business will provide high quality services to their customers and sees to it that every customers

and sees to it that every customers needs and wants are satisfied. We serve food which are finger

foods (pica pica); liquors like cocktails, beers and brandy; and KTV which are guaranteed to

satisfy our valued customers who are 20 years old and above.

D. Hours of Operation

Le Circuit Mobile Bar will operate for 8 hours which will start at 6:00 in the evening

until 2:00 in the morning. We will open at exactly 6:00 pm because we considered those

customers who prefer to go to disco bars this early in the evening for the purpose to chill out and

not staying very late in a bar. And this will also give chance for the customers to still see the

tourists spots in Baguio City while the night is still young. The bar will close at 2:00 in the

morning because most of the party goers go home at this time. The hours of our operation

considered hours where people wanted to go to the bar and the time they leave the bar.

E. Areas Served
Baguio is one of the major tourist attractions in the country and is also considered as the

center of education in Northern Luzon; many people are visiting and enrolling here in Baguio

City. Since our target customers will be students and young professionals, tourists, Baguio City is

the perfect place to put up a Mobile Bar. The mobile bar will serve the people in the city of

Baguio who are 20 years old and above. The mobile bar will not cater for 19 years and below

because they are still considered as minors.

F. Users of the Business

The goal of our mobile bar is to catch the attention of the market, specifically people ages

20 years old and above who wants to have families and friends get together.
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Professionals, students, and the tourists (both local and international are the major users

of the services that we are going to offer.

G. Geographical Area of Dispersion

Le Circuit Mobile Bar services will be available anywhere the mobile bar stops in its

proposed itinerary but will then be provided to other areas if favorable profits which are enough

for its expansion and additional operations arise in the next years to come. Though, the office is

situated in a home-based location, with the aid of internet, connecting to and reaching people in

distant areas is never impossible that could help to attract more customers to the center.
II. DEMAND ANALYSIS

In any business, one fundamental aspect to be considered is the demand. The concept of

demand is parallel to the profitability of a business enterprise, which refers to the level of desire

or need that exists for particular goods or services. Moreover, a high demand is indicative of a

chance of obtaining a sustainable share of the market in which a business enterprise is planning

to thrive in.

A total of 400 respondents of different legal age brackets in Baguio City were subjected

into this survey. a total of 262 males or 65.5% and 138 females or 34.5% participated in the

survey. Data were gathered through a questionnaire administered to respondents containing five

items aimed at assessing their practices and lifestyle related to disco bar and the like. Results and

summary of the responses of the respondents were presented in the tables below.

Table 1.1

Projected Population by Age Group

(Baguio City with a growth rate of 2.36%; source: NSO)

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Age Range 2009 2010 2011 2012 2013
20-24 36518 37401 38284 39187 40112
25-29 30031 30757 31483 32226 32986
30-34 24212 24797 25382 25981 26594
35-39 19737 20214 20691 21179 21679
40-44 18762 19215 19668 20133 20608
45-49 16474 16872 17270 17678 18095
50-54 13390 13741 14065 14397 14737
55-59 9639 9872 10105 10343 10588
60-64 6855 7021 7187 7356 7530
65-69 4075 4174 4273 4373 4477
Total 145734 149256 188408 192854 197406

In order to determine the sample size needed for this study, the researchers adapted

Slovins Formula. The above values were derived through obtaining the average population of

our target market which are 20 years old to 49 years old (female and male) in Baguio City.

A. COMPUTATION OF THE SAMPLE SIZE

n = 1 + Ne2

Where:

n = sample size

N = total projected population

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e = standard error at 0.05 level

197406
n
1+ [(197406)0.052]

n = 399.19 or 400

B. FINAL TALLY OF QUESTIONNAIRE

Table 1.2
Distribution of Respondents as to Party Goer or Non-Party Goer Across Gender
Sex Party Goer Non-Party Goer Total
Frequency Percentage Frequency Percentage
Male 255 66.58 7 41.18 262
Female 128 33.42 10 58.82 138
Total 383 100 17 100 400
The table above shows the distribution of the respondents who goes to disco bar,

described as party-goer, and those who never experienced going to a disco bar, described as non-

party goer. It is reflected on the table that 95.75% or equivalent to 383 respondents are disco

goers, of which majority or 255, equivalent to 66.58%, are males and only 128 or 33.42% are

females. This result clearly shows that large portions of the sample population who are

considered disco-goers are men. This means that going to a disco bar is most preferred by men,

than women do. This supports the fact that men are more adventurous in nature and that they are

more inclined at engaging themselves in a party-filled environment.

On the other hand, only 17 of the respondents are considered non-party goers. Of this

number, 7 are men and 10 are women.

Table 1.3

Services frequently Availed by the Disco Goer respondents

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Services Frequency Percentage
Liquor
Cocktails 205 53.52
Beer 158 41.25
Brandy 20 5.23
Total 383 100.00
Food
Fries 97 25.33
Nachos 178 46.48
Onion Rings 108 28.19
Total 383 100.00
KTV 380 99.22

The respondents who are considered party goers were instructed to continue answering

the items on the questionnaire. Those non-party goers jumped to question 5 of the questionnaire.

The disco goers respondents were asked of the services, in terms of liquor, foods and KTV, they

frequently avail of when inside the disco bar. Their responses were presented in Table 2.

As to drinks, most of the respondents are cocktail lovers with 205 or 53.52% of them

availing the said product. Brandy was the least availed-drinks comprising only 5.23% of the

respondents. The respondents disclosed during the data-gathering that they prefer taking-in light

drinks so they could stay longer in the disco bar bringing them more time to enjoy the party-like

atmosphere.

The respondents, moreover, choose to buy nachos over fries and onion rings. A total of

178 or 46.48% of the respondnets said that they enjoy more eating nachos than fries or onion

rings as it compliments and blends well with the taste of their cocktail drinks.

In addition, almost all the respondents avail also of the KTV services of the disco bar as

this adds up to their enjoyment and makes their stay more fun and thrilling.

Table 1.4
Frequency of Respondents Availment of the DISCO Bar Services

Frequency Liquor Food KTV

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Daily 30 89 73
Every other day 53 78 103
Once a week 107 98 98
Twice a week 137 87 87
Monthly 56 31 19
Total 383 383 380

The respondents were also asked of the the number of times in a week that they avail of

the services offered in a disco bar. When it comes to liquor, most of the respondents take it in

moderation as reflected by the 137 and 107 respondents who take it twice and once in a week,

respectively. Only 30 of the 383 respondents take-in daily any liquor sold in a disco bar.

As to food consumption, the respondents vary in their responses from daily, to every

other day, to once or twicein a week. However most of them consume any of the three foods

offered in the disco bar once a week. Only 31 of the respondents buy foods in a disco bar in a

monthly basis.

In terms of KTV services, most of the respondents prefer availing it every other day or

once a week. Only 19 of them enjoy KTV services once a month.

Table 1.5
Respondents Average Weekly expenditure on Liquor

Liquor Weekly Expenditure Total

P50 to P99 P100 to P149 P150 to P200
Cocktails 5 200 205

Beer 150 8 158

Brandy 20 20

Since the respondents take-in liquor weekly in moderate manner, their weekly

expenditures on said disco bar product ranges for as low as P50.00 and as high as P200.00 only.

Most of the respondents spend P50.00 P99.00 on beer, accumulating a total of 150 respondents

out of 158 who take-in such liquor. On the other hand, almost all cocktail drinkers respondents
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spend P100.00 P149.00 weekly, while all brandy lovers cost them P200.00 in a week to enjoy

such more expensive liquor.

Table 1.6
Respondents Average Weekly Expenditure on Food

Food Weekly Expenditure Total

P50 to P99 P100 to P149 P150 to P200
Fries 86 11 97

Nachos 94 86 7 178
Onion Rings 97 11 108

The table above reflects that most of the respondents spend an average of P50.00 to

P99.00 pesos weekly to enjoy the tastes of fries, nachos and onion rings in a disco bar. The data

implies that the disco goers practice giving contributions in buying such foods as they may share

in each serving of the abovementioned food products, which they can rarely do in availing liquor.

A total of 108 respondents, meanwhile, where 11 are fries lovers, 86 for nachos and

another 11 for onion rings, spend an average of P100.00 P149.00 pesos in a week in those

foods. The remaining seven respondents allot a weekly budget of P150.00 P200.00 for onion

rings.

Table 1.7
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Respondents Average Weekly Expenditure on KTV

Amount Frequency Percentage

P5.00 378 99.47
P10.00 2 0.53
P15.00 0 0.00
Total 380 100.00

On KTV services, the respondents only spent weekly an average range of P5.00 to P15.00.

almost all the respondents pay P5.00 weekly to sing their favorite song in a disco bar. Since each

song costs P5.00, this reflects that most of the KTV lovers go to a disco bar only once a week.

This may even imply that those disco goers who visit twice or even more frequent in a week only

get to sing one song. This results may have been affected by the fact that most disco bars only

have one KTV which means that disco goers get the chance to sing one after the other.

Table 1.8
Possible Public Patronage on Mobile Disco Bar with KTV

Public Patronage Frequency Percentage

Yes 376 94.00
No 24 6.00
Total 400 100.00

The respondents were asked whether or not they will patronize a Mobile Disco bar with

KTV whenever it will be introduced in Baguio City. The proposed business concept received

almost 100% of the respondents patronage. 376 out of 400 or equivalent to 96% responded

positively that they will avail of the services of such business. Respondents revealed that the

concept is absolutely new in Baguio City. The Mobile Disco Bar with KTV according to

respondents does not require them to go where the disco bars are. As the name implies, the

Mobile disco bar with KTV will be the one which will go to the place of disco goers. This Disco
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Bar maybe also be rented by a group in a very reasonable price so as to provide them utmost

privacy.
C. PROJECTED YEARLY DEMAND

Analyzing Demand is very important in order for us to identify the needs of our

prospective customers and their willingness and their capability in availing the services that we

are going to offer. Therefore, demand analysis will help us to foresee if our business will succeed

in the future.

Table 1.10 presents the summary of the computed deviation for each statistical method,

followed by Table 1.10 for the solution of the proper method of projection for the study.

Table 1.9
Historical Demand

Populatio

Year n % of Demand Estimated Demand

2009 145734 *94% 136989.96
2010 149256 94% 140300.64
2011 188408 94% 177103.4358
2012 192854 94% 181283.0769
2013 197406 94% 185561.3575

*Percentage of Demand = No. of respondents who said yes

Total no. of sample size

= 376

400

Percentage of Demand = 94%

Table 1.9a
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Summary of Mathematical Method

Arithmetic Straight Line 38,877.89

Arithmetic Geometric Curve 23,797.19
Statistical Straight Line 7,979.00
Statistical Parabolic 62,295.82

Based on the Standard deviations derived Statistical Straight Line has the lowest value

therefore we will use statistical straight line in projecting the demand for the next five (5) years.
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Table 1.10
Method of Projection Used

HISTORICAL VALUES
YEA
POP'N X X2 XY a b Yc Y-Yc (Y-Yc)2
R
122810. 136,622.6
2009 136,990
1 1 136,990 12 13812.52 5 367.31 134,918.35
122810. 150,435.1 - 102,708,715.3
2010 140,301
2 4 280,601 12 13812.52 7 10,134.53 7
122810. 164,247.6 165,270,096.0
2011 177,103
3 9 531,310 12 13812.52 9 12,855.74 4
122810. 178,060.2
2012 181,283
4 16 725,132 12 13812.52 2 3,222.86 10,386,824.37
122810. 191,872.7
2013 185,561
5 25 927,807 12 13812.52 4 -6,311.38 39,833,554.23
TOT 1 2,601,84 318,334,108.3

AL 821,238 5 55 1 7
7,979
a 122810.1245
b 13812.52318
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Table 1.11
Projected Demand
PROJECTED VALUES
YEA
a b x Yc
R
201

4 122810.1 13812.52 6 205685.26

201

5 122810.1 13812.52 7 219497.79

201

6 122810.1 13812.52 8 233310.31

201

7 122810.1 13812.52 9 247122.83

201 1

8 122810.1 13812.52 0 260935.36

Table 1.11 shows the demand for the year 2013 up to 2018. We got the figures written

above using the arithmetic straight line. Projected demand is important because it will help us to

know the demand for this kind of business for the years to come.

III. SUPPLY ANALYSIS

Supply is defined as a basic economic concept that describes the total amount of a certain

good or service that is available to customers. Supply represents how much the market can offer.

The quantity supplied refers to the amount of a certain good producers are willing to supply at a

certain price. The relationship between the price and the quantity of a good which is being

supplied to the market is known as the supply relationship.

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Since the project is being offered to the City of Baguio for the first time, there are no

direct competitors existing as of the present based from the list of the existing business in Baguio

City provided by the Department of Trade and Industry (DTI). Since there are no direct

competitors, there is no existing supply in the market. Since there are no direct competitors, Le

Circuit Mobile Bar is expected to satisfy as much as 100% of the demand. However, there are

certain limitations regarding the supply of the service, thus Le Circuit Mobile Bar will try to

accommodate all the demands.

IV. DEMAND AND SUPPLY ANALYSIS

Demand and Supply Analysis is important for an enterprise to determine the existing

gap between demand and supply. Demand and Supply Analysis will help us know if there is a

surplus or shortage in the market for our business which is a mobile bar. It would also help us to

determine if the business that we are planning to enter would be profitable or not to know if there

is still a need for an additional supplier for this kind of business or if there is too much already.

The absence of existing supply in the market for the service that will be offered by the

business indicates that Le Circuit Mobile Bar should satisfy the 100% demand of the business

wishes to do it so. However, because of the limited capacity of the business and taking into

account the estimated capacity that the business can operate with, the business may satisfy 17%

of the market demand.

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Table 1.17
Projected Demand - Supply and Unsatisfied Demand

Projected Market Unsatisfied % to be Target

Year Supply Demand Satisfied Demand

2014 0 193,344.15 17% 32,868.51
2015 0 206,327.92 17% 35,075.75
2016 0 219,311.69 17% 37,282.99
2017 0 232,295.46 17% 39,490.23
2018 0 245,279.23 17% 41,697.47

V. PRICE STUDY

In economic theory, price is determined by the demand and supply situation which

indicates that if the demand increases, prices will increase and the reverse will result in a lower

prices. However, there are other factors that will affect the pricing of products and services like

the presence of direct and indirect competitors highly influences the pricing of products and costs

incurred in rendering our services and other necessary expenses also affect the pricing of the

services.

Le circuit mobile bars KTV, food and beverages are priced based on the cost of

production and the added percentage of mark up of each foods and drinks offered. The

percentage of mark up will cover the other incurred costs (cost of labor, cost of operations,

maintenance costs and other incidental related costs). Although we aim to have a fair rate of

return, we have to price our products in a reasonable rate that will be acceptable and marketable
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to our customers. This is suitable to the tight competition, and in consideration of the most

individual in the City as our target market.

VII. FACTORS AFFECTING THE MARKET

The demand, supply and prices of the services can be affected by different factors influencing the

market.

Population Growth

Philippines is one of the countries with increasing population then if the population increases, the

demand also increases. This would mean more demand for this kind of business. Le Circuit

Mobile Bar will satisfy the demand of people ages 20 years old and above for this kind of

entertainment. The bigger population to satisfy would mean greater chance for our business to

prosper because there would be more customers.

Income

Income is one factor that dictates the consuming habits of an individual. The greater the income

of the people has the greater capacity on availing the services that we are going to offer and the

lower their income would mean that their capacity on availing the services that we are going to

offer would be limited.

Income of different people varies and we can only cater to those who have higher income and so

our market is limited to people who can afford to spend their money unwinding in bars.
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Taste and Preference

The taste and preference refers to an individuals interest towards product and services and these

interests may vary over time. That is why most of the consumers are attracted to new ideas and

innovations, new products. Thus, results to an increase in demand for new products and services.

Bars should adapt to these changes by introducing new ideas.

Taxes

A fee charged or levied by a government on a product, income, or activity. The tax to be

imposed on the business is an indirect tax since it is levied in the price of our service.

Inflation

Inflation is an economic situation where there is a sustained and general increase in prices

of all or nearly all of the markets in an economy causing, a decrease in the purchasing power of

the Philippine peso. As a result, prices of the services offered will increase because of the

increased costs of operations like cost of labor and materials.

Competition

Establishing a new business is not easy because other firms own the loyalty of customers.

It is a thorny step of penetrating the market because the customers have present qualification of

the related services. Efforts are needed to convince them to shift their loyalty to the business or

earn their fidelity.

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VIII. MARKETING PROGRAM

Because of the growing competition in the market, adapting effective marketing program is

highly recommended in order for the business to be known and patronized by customers. One of

the most popular marketing strategies by the business enterprises in promoting their services is

through advertisement.

We intend to advertise our bar through the following:

Print Advertisement

We will be having an advertisement in Baguio Midland Courier with its name, address

and the telephone number of our business establishment. It will be published twice a month for

two issues of the said newspaper. The estimated cost to be incurred is 3,500 pesos.

We will also be distributing flyers within the City of Baguio to create awareness among

the people and this will encourage them to visit the bar. The estimated cost to be incurred is 4800

pesos.

Social Media

Most of the business establishments use social media for the promotion of their business

because it is very popular to everyone and there will no cost to be incurred. We will be making

our own website wherein the people will see the services we offer, our menu, operations,

promos, and other details of our business. Social media will also be a way to have contact

relationships with our loyal and prospect customers.