3.

MARKET STUDY

3.1 Project Description

The project is based on the establishment of a FOODNET DELIVERY SERVICES located at Sta. Cruz,
Dapitan City. The company provides its services by catering customers' regular three main meals
(breakfast, lunch, dinner) on weeekdays exclusive to students from the University and College in the
locality in the form of fully packaged and varied meals to be delivered right at their respective Boarding
House's doorstep. The company's fully packaged and varied meals will be sold to the students by asking
the landlady's permission and then contracting with the students for pricing and payment and
cancellation policy. Food delivery is also provided to appeal to the customers' convenience which comes
with added fees with rates varying according to customer's location. Hence, this proposed business is
very economical and convenient as a result of being located in areas where there are no such services
being offered.

3.2 Expected Services Description

The expected products of the project include the following:

 Prepared and packaged meals for college and university students.

 Food delivery of the regular three main meals (breakfast, lunch, dinner).

 Getting the unwashed empty meal boxes at the respective boarding houses.

3.3 Demand Analysis

To analyze demand,( visits have been conducted to different boarding houses around the locality. All data
was collected to identify the volume of demand and how to calculate it. In addition, interviews at the
university and college institutions were conducted accordingly.) The following assumptions occurs:

 The number of university students is about 6,000 students; about 70% of them were student
boarders; about 6.67% of them will avail the offered services.

 The number of college students is about 600 students; about 30% of them were student boarders;
about 20% of them will avail the offered services.

 The Net Income resulting from FOOD DELIVERY SERVICES is about 23% higher compared to the
revenue earned by carenderias.

The following table shows the estimated demand on FOOD DELIVERY SERVICES in the locality of Dapitan
City for 2019.

Table ___ Demand of Food Delivery Services at Dapitan City in 2019.

Item Total Demand Number of Revenue per Total TOTAL PER
Percentage Customer Day Revenue per WEEK
per Day Day (6days)

Students 4,380 10% 287 Php 110.00 Php Php 189,

Clients 31,570.00 420.00

3.5 The Expected Market Share

The following table shows the forecasted demand on delivery services in the locality of Dapitan City
between 2019 and 2023 which is the expected year to start the project on the basis of student growth
rate in terms of enrolees.

REVENUES 2019 2020 2021 2022 2023

(Annually)

Student clients Php 9,092,160 Php 10, Php Php Php

910,592 13,092,710.4 15,711,252.48 18,853,502.98

The following table shows the expected market share of the company in its first three years of operation:

Table ___ The proposal's expected market share.

Statement First Year Second Year Third Year

Expected Php Php Php

Market Size 18,853,502.98 22,624,203.58 27,149,044.29

Expected 64,102 106,334 162,894

Revenue

Expected 0.34% 0.47% 0.60%

Market Share
TECHNICAL STUDY
Marketing Strategy

Target Market

The project is targeting to the following clients:

 University and College students who are student boarders in the locality.

Expected Services and Products

The Project Expected Services shall involve:

 Ready and packed food meals for college and university students.

 Food delivery of the regular three main meals (breakfast, lunch, dinner).

 Getting the unwashed empty meal boxes at the respective boarding houses.

Expected Prices

The project pricing strategy involves the following:

Table ___ Expected Prices of the proposal:

The Benefiting party Average Number of Prices per Meal Average Prices per day
from the Service Customer per day
( Breakfast, Lundch and
Dinner )

Php 30.00; Php 40.00;

40.00 respectively

Meals of students of 281+6 = 144 students Php 30+40+40 = Php

schools and universities. 37.00

Promotion

The Project Promotion Strategy involves the following:

 Creating company's social media accounts : Facebook and Instagram Page

 Printing paper and electronic brochures to define the project and its services.

 Direct promotion to the students via the communication with the landlady's of different boarding
houses in the locality.

 Distribution of advertisements and brochures to the students during weekdays.

Selling

The Project Sale Strategy involves the following:

 Direct receiving of the clients by the telephone calls and the preparation of the food requests.

 Direct communicating with the persons in charge of the different boarding houses.

 Personal talks with the clients and consequently contracting with the clents for pricing, payment and
callelation policy.

 Direct sale to the clients in the company site.

Services

The Delivery Services Project strategy shall involve the following:

 Concentration on the quality of the products and used materials.

 Permanent and continuous cleanliness.

 Respect of the rules of health, sanitation and general safety.

 The continuous maintenance of the equipment.

 Pay attention to good treatment towards the clients.

 Pay attention to the timely provision of the delivery services to clients.

 Provision of services conformed to their specifications.

 Acquaintance with the cooking rules and ways of catering.

 Continuous cleanliness of the used tools, furniture and other facilities and equipment.

 Respect of rules of items preparation and rules related to the service.

 Credibility in dealing with the clients.