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III.

MARKET ASPECT

3.1 Products Offered


The proposed project is currently offering snacks specifically chips made from
taro and banana, flavored with original, cheese, sour cream, barbeque and seasalt. The
business will use machinery and equipment to increase the production process. The
products will undergo quality control to ensure that the products offered will be of best
quality. Moreover the delivery of the said products will be faster compared to its
competitor.

3.2 Target Market


The target market of the business is the retailers in General Santos City
specifically the following included in the table below:

Table 1. Target Market


Dadiangas East Elementary School
Sped School Canteen Canteen
Dadiangas West Elementary School
SM PasalubongCenter Canteen
VL Foods Namita's Convenience Store
Dawnlicious Elijah Convenience Store
GSCNHS Canteen Mega Charm Convenience Store
Hope Christian School Canteen LNHS School Canteen
Notre Dame Lanton School Canteen NDDU Consumer Canteen
Holy Trinity College School Canteen Notre Dame Siena School Canteen
Ramon Magsaysay College School Chin’s
Canteen

General reason for selecting the target market:


The market above was selected because it is accessible to the location of
the business.
Specific reasons for selecting the target market:
 VL Foods, SM PasalubongCenter, SPED school canteen and Dawnlicious
are currently the retailers of Dolores Food Products that have established
trust and confidence with the owner.
 School canteens are chosen because of the student population in it.
Notably, General Santos City National High School (GSCNHS) canteen
has an estimated total population of 11,000 students.
 Chin’s was chosen because of the profit opportunity.
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3.3 Demand

The table in the next page shows the computation of the projected demand of
chips of the target market.
Table 2. Projected Demand

Schedule of demand
Target Market Average Monthly Expenditure 2017 2018 2019 2020 2021
Sped School Canteen 20,000.00 240,000.00 278,400.00 322,944.00 374,615.04 434,553.45
SM Pasalubong Center 30,000.00 360,000.00 417,600.00 484,416.00 561,922.56 651,830.17
VL Foods 36,000.00 432,000.00 501,120.00 581,299.20 674,307.07 782,196.20
Dawnlicious 25,600.00 307,200.00 356,352.00 413,368.32 479,507.25 556,228.41
GSCNHS Canteen 22,000.00 264,000.00 306,240.00 355,238.40 412,076.54 478,008.79
Hope Christian School Canteen 10,400.00 124,800.00 144,768.00 167,930.88 194,799.82 225,967.79
Notre Dame Lanton School Canteen 12,400.00 148,800.00 172,608.00 200,225.28 232,261.32 269,423.14
Notre Dame Siena School Canteen 8,000.00 96,000.00 111,360.00 129,177.60 149,846.02 173,821.38
Holy Trinity College School Canteen 12,800.00 153,600.00 178,176.00 206,684.16 239,753.63 278,114.21
Ramon Magsaysay College School Canteen 14,000.00 168,000.00 194,880.00 226,060.80 262,230.53 304,187.41
Dadiangas East Elementary School Canteen 11,200.00 134,400.00 155,904.00 180,848.64 209,784.42 243,349.93
Dadiangas West Elementary School Canteen 14,000.00 168,000.00 194,880.00 226,060.80 262,230.53 304,187.41
Namita's Convenience Store 25,000.00 300,000.00 348,000.00 403,680.00 468,268.80 543,191.81
Elijah Convenience Store 24,000.00 288,000.00 334,080.00 387,532.80 449,538.05 521,464.14
Mega Charm Convenience Store 22,400.00 268,800.00 311,808.00 361,697.28 419,568.84 486,699.86
LNHS School Canteen 12,000.00 144,000.00 167,040.00 193,766.40 224,769.02 260,732.07
NDDU Consumer Canteen 11,200.00 134,400.00 155,904.00 180,848.64 209,784.42 243,349.93
Chin's 36,800.00 441,600.00 512,256.00 594,216.96 689,291.67 799,578.34
Total 311,000.00 4,173,600.00 4,841,376.00 5,615,996.16 6,514,555.55 7,556,884.43

The demand above is computed by multiplying the average monthly expenses of


the target market to 12 months for the computation of average annual expenses. The
table shows a favorable outcome as the demand for the products increases.

3.4 Supply
The supply for chips is taken from the average annual sales of the existing chips
shops in the city for the period of 2018. The data are gathered from the different target
market showing the competitors’ sales. Such data are used in computing the projected
supply,
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The table below shows the projected supply of chips industry.


Year Average Annual Sales
2017 180,720.00
2018 216,864.00
2019 260,236.80
2020 312,284.16
2021 374,740.99

(Please see Schedule 12 for the detailed computation)


3.5 Demand-Supply Gap Analysis
The demand-supply gap in the industry shows an increasing trend. The rationale
for the gap’s increase is that there is an increase of the demand for the products.
Furthermore, the demand-supply gap analysis shows that there will be more population
of the target market and since there is a large gap to fill in then the demand-supply gap
is favorable.
The table below shows the demand-supply gap for the chips in the market.

Table 4. Demand-Supply Gap (in pesos)


Year Demand Supply Demand-supply Gap
2018 4,841,376.00 216,864.00 4,624,512.00
2019 5,615,996.16 260,236.80 5,355,759.36
2020 6,514,555.55 312,284.16 6,202,271.39
2021 7,556,884.43 374,740.99 7,182,143.44
3.6 Market Share
The market share is computed by its percentage to the demand-supply gap in the
market. As a result, the market share of Dolores Food Products is constant throughout
the year. The increasing percentage of its market share is an indicator for the business
to continue improving its market and products offered. Futhermore, 20% of the market
share was allocated for commercial snacks.
Presented below is the table that shows the computation of the market share
based on the demand-supply gap.

Table 5. Market Share

Demand-supply Gap Revenue Market Share Commercial Snacks Total Market share
2018 4,624,512.00 1,818,880.00 0.393312851 0.2 0.1933
2019 5,355,759.36 2,109,900.80 0.393949888 0.2 0.1939
2020 6,202,271.39 2,447,484.93 0.394611067 0.2 0.1946
2021 7,182,143.44 2,839,082.52 0.395297384 0.2 0.1953
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3.6 Pricing Strategy


The business will still use the competition based pricing strategy. Product prices
are lower than its competitors by Php10.00 per piece. The business’ products prices will
be charged per piece to its customers on cash and consignment. The table below
shows the prices of the products (in pesos).
Table 6. Pricing Strategy

School Pasalubong Center, VL Dawnlicious Delicacies


Products Canteens Food Products and ( all products are of 60g, w/o
convenience stores label)

Taro chips

Original - 25 -
Cheese 10 25 20
Barbeque - 25 20
Sour Cream 10 25 20

Banana Chips

Original - 25 -
Cheese 10 25 20
Sea salt - 25 20
Sour Cream 10 25 20

3.8 Place
The place of the enterprise is in Prk. Mapailubon, San Isidro General Santos
City. It is near and along Mabuhay Road. Considering that the place is not within the city
proper, it is far from the decongestion of roads and pollution. Thus makes it a suitable
place in manufacturing the products safe and clean. This is a strategic location since it
is owned by Mrs. Dolores thus lessen the possible cost of the project.

3.9 Promotional Strategies


Through word of mouth and advertisements through social media, the customers
will become aware of the existence of the business which offers variety of choices that
will suit everyone’s tastes. A social media page will also be created to promote and
persuade the customers to avail the products offered. Furthermore, the business will
also participate in the product exposure events by the DTI.
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3.10 Marketing Strategies

The strategy of the proposed project is based on satisfying its market. Dolores
Food Products ensures the satisfaction of the customers by having well-trained
employees to manufacture these products. The business will use machineries and
equipment to manufacture the products faster but without compromising its quality. The
business accepts recommendations, feedback whether positive or negative from the
customers that can lead for some innovations.

The pricing of the products differ among the retailers (please refer to Table 5).
Payment is made through cash or consignment. The pricing of the products is made
much lower compared to its competitors in the market. It is 10 pesos lower than the
usual pricing of the competitors. Clients are welcomed to visit the production place to
know more about the products offered and they can also visit pasalubong stores in
malls for convenience.

Furthermore, the packaging of the products will be improved to be more


competitive.

3.11 Projected Revenue


The table shows the projected revenue of the enterprise. The revenue is
projected to increase by 16% per annum. The revenue of the business is principally
from the chips manufactured and produced.

Table 7. Projected Revenue


Year 1 Year 2 Year 3 Year 4
Taro Chips 1,429,120.00 1,657,779.20 1,923,023.87 2,230,707.69
Banana Chips 389,760.00 452,121.60 524,461.06 608,374.82
Total 1,818,880.00 2,109,900.80 2,447,484.93 2,839,082.52

The table above shows a favorable increase in the revenue which means that it could
sustain the business in longer run. (See Schedule 8 for the Revenue Breakdown).