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TARGET MARKET
Aside from our two primary customers, those people, regardless of age and
condition, will have the chance to try it because our cart will go around the town as the
classes starts to resume. Hence, Empanada Express will target market a large area of
the said town.
MARKET SEGMENTATION
Market Segmentation
grade school high school market people homemakers
15%
29%
25%
31%
The market research indicates about 29% within the 500 square meter
radius around the proposed location of the cart. This segment of the market usually is
accompanied by parents or guardians and has the tendency to request to buy anything
that catches their interest or anything eye-candy.
The high school group has the tendency to spend freely on their own and
is usually going with barkada bonding. The market indicates about 31% of the potential
customers within the 500 square meter radius around the proposed location of the cart.
The college group, the same as the high school group has the tendency to
spend freely on their own. However, more than going with the trend, the college group
has the more tendencies to look for affordable products. The market indicates about
25% of the potential customers within the 500 square meter radius around the proposed
location of the cart.
The homemakers spend most of their time inside their homes and do not
have time to visit snack houses. In tending their home chores they get to buy in the food
carts because it is mobile.By targeting this group, we cannot generate a large volume of
sales immediately; however, we can create a long term customers with them. The
researchers conservatively estimated to have at least 15% customers that could
patronize the food cart.
SURVEY
The products and services to be provided by EMPANADA EXPRESS will a food cart
business operating in Gattaran, Cagayan. However, those products and services
offered is different from those usual food carts. Demand and supply analysis is of crucial
part in evaluating whether this kind of business is viable and profitable. We have
conducted a survey within the locality to determine the current, potential, and projected
demand and supply. We were able to gather 100 respondents as our sample
population.
Basing from the result of our survey, we were able to gather information needed for our
analysis of supply and demand. Here are the result of our survey:
Yes No
Majority or 96 out of 100 are willing to buy snacks on food cart. They say that it
easier, cheaper and faster than going through restaurants. The remaining 14
respondents prefer to eat or buy snacks indoor. One of their main reason is that
they are not fond of foods exposed outside.
Chart Title
Yes No
89 out of 100 respondents are fond of eating empanada. This product will have
different types which includes chicken empanada as our main product. The 89
respondents or 89% of our sample population will be used in determining our
currents and projected demands.
1 piece 2 pieces
3 pieces more than 3
Chart Title
13 respondents often eat daily. 21 of them eat once a week. Majority or 42 out of
100 respondents eat twice a week. 11 respondents eat at least once a month
and the remaining eat whenever they have time.
5. How much are you willing to spend in buying one serving of empanada?
Chart Title
26, 67, and 7 respondents are willing to buy empanada at price of 25 php and
below, 30-50 php, and above 50 php respectively.
Chart Title
Since respondents can chose 1 or more of the choices provided, we made use of
percentages to determine the shares of every variance offered to easily
determine the demand of each products. The percentage share of the products
has been included in the Demand schedule.
DEMAND
The demand in our proposed business will determine the sales expected to be
generated. Furthermore this information will be used in determining our cost of sales
and other operational activities and eventually, the determination of net income for
profitability to be evaluated.
Current Demand
Since our business will be the first one in Gattaran, there are no statistics regarding the
demand within the locality about this kind of business. This is one of the reasons why
we have conducted a survey regarding our business. The population of Gattaran from
census as of 2015 is 56,661 and a growth rate of 1.93%. This growth rate is based on
the growth rate in Tuguegarao. We have concluded that this is the most appropriate
growth rate since it is the most populous municipality in Cagayan Valley and we were
not able to gather information regarding that matter. It is the most populous city in the
region. Basing from sample population (respondents) from the survey conducted, 96 out
of 100 residents of Gattaran is willing and able to avail products provided on food carts.
This makes 96% of the total population of Gattaran. 89 out of 100 eats empanada which
includes those that prefer to eat inside. Technically, 96% of the 89% demand of
empanada wants to buy the product on food cart. We may therefore conclude that 85.
44% is the demand of the business being proposed. Frequency is the amount of time (in
days) that customers are willing to spend in the provided services. Frequency used is
the average days that customers spend for the service annually.
Our product empanada will be of different variances or flavours. The demand for every
service is determined by multiplying the annual demand with their percentage
contribution that we have determined from our result of the previous survey.
product variances Market Share 2015 2016 2017 2018 2019 2020
chicken 21.33% 2620983.12 2671568.09 2723129.35 2775686 2829256.485 2883861.135
smores 12.89% 1583894.63 1614463.79 1645622.94 1677383 1709756.966 1742755.276
strawberry jam 16.00% 1966044.53 2003989.19 2042666.18 2082090 2122273.969 2163233.857
tuna 16.00% 1966044.53 2003989.19 2042666.18 2082090 2122273.969 2163233.857
beef 16.89% 2075405.76 2115461.09 2156289.49 2197906 2240325.459 2283563.74
pineapple 7.56% 928956.04 946884.89 965159.77 983787.4 1002774.45 1022127.997
caramel apple 9.33% 1146449.72 1168576.20 1191129.72 1214119 1237551.008 1261435.743
The growth rate of 1.93 in 2015 census will still be use to determine the population in
the years 2018-2020. Our projected annual demand had been computed in the same
manner as the past demand. The frequency computed will still be used. The Projected
Demand in years 2018 to 2020 follows:
product variances Market Share 2015 2016 2017 2018 2019 2020
chicken 21.33% 2620983.12 2671568.09 2723129.35 2775686 2829256.485 2883861.135
smores 12.89% 1583894.63 1614463.79 1645622.94 1677383 1709756.966 1742755.276
strawberry jam 16.00% 1966044.53 2003989.19 2042666.18 2082090 2122273.969 2163233.857
tuna 16.00% 1966044.53 2003989.19 2042666.18 2082090 2122273.969 2163233.857
beef 16.89% 2075405.76 2115461.09 2156289.49 2197906 2240325.459 2283563.74
pineapple 7.56% 928956.04 946884.89 965159.77 983787.4 1002774.45 1022127.997
caramel apple 9.33% 1146449.72 1168576.20 1191129.72 1214119 1237551.008 1261435.743
Supply
Determining the supply that is being provided in the locality enable us to determine the
demand that we still need to fill or satisfy.
Since there are no existing businesses offering services which is substantially the same
with the proposed business within the locality and with the same target market. We may
conclude that the demand for this recreation activities is still not satisfied and therefore
no supply.
Demand-Supply Gap
Demand gap is the demand that has not been satisfied by providing the supply. This
simply means that the demand for the commodity is higher than what had been supplied
in the market. As we have learned, the demand for recreational activities (particularly
trampoline, ball pool, and giant slides recreational activities) but there is no existing
market to supply that demand. The demand gap therefore is the projected demand as
follows:
Potential demand are the demands that is expected in the market of certain product or
services. It relates to sales forecasting, a process by which a company attempts to
predict future demand for the coming years. It is determined based on historical
forecasts and other relevant data. Since there is no existing similar business with similar
target market regarding our proposed business, our potential demand is the population
increase. We have constantly used the 1.93 growth rate from 2015 census in
determining our projected demand. We have concluded that our potential demand is the
increase in the localitys population per year.
For this business, we are to use MARKET FILLING since we are the pioneer to
offer this product in the town. However; to fully target its objectives and to address
threats, such as rising competitions, the proponents propose the following marketing
strategies:
A. Physical Marketing
Empanada Express will have a suitable cart that is delightful and friendly to
customers. Its designs concepts should be instagrammable and pleasing in the eyes of
the customers to satisfy them not only with the best empanada we provide but also with
the design of our empanada cart.
B. Media Marketing
C. Product Marketing
SWOT ANALYSIS
STRENGHTS OPPORTUNITIES
Unique and high quality The route provides a good number
empanadas with a variety of of target market.
savory fillings are offered. Easy and affordable supply.
It provides different choices of Provides other income to small
fillings. businesses who will serve as our
Provides for to-go services. agent.
Pioneer to offer empanada in the Setting industry standards and
whole town. gaining economies of scale.
Provides an affordable empanada It is located in the commercial site
at satisfactory cravings. of the town near schools and
Offers new, unique and delicious public market.
tastes and concept.
WEAKNESSES THREATS
Establishment of other food carts
is inevitable
Trends about eating fewer
carbohydrates.
People may choose to patronize
other satisfactory cravings.