The Market Study MARKET STUDY A.

GENERAL STATEMENT ABOUT THE CURRENT MARKET The government and the private sector are both making efforts to increase local coffee production, in order to reduce the reliance on imports. In 2012, however, local production in the Philippines still did not meet coffee demand in the country. The country imports the rest of its coffee requirements from Vietnam, Indonesia and other Asian countries. In 2012, the key player in the coffee industry, Nestl Philippines Inc, opened a new coffee centre in Batangas City that will increase access to new coffee farming techniques in a bid to increase the number of coffee producers and production in the Philippines. The more widespread health and wellness trend in the forecast period will encourage various brand manufacturers to produce organic and decaffeinated coffee variants to prevent a decline in the consumer base and capture a greater share of health-conscious consumers. There might be more marketing activities that will highlight the benefits of coffee, as manufacturers attempt to counter any negative perception about the drink. The positive economic outlook in the forecast period will benefit both the instant and fresh coffee categories. Philippine coffee consumption has shown steady growth, with gourmet coffee having the strongest growth. Coffee drinkers in the Philippines are among the most demanding ones. They favour gourmet coffee drinks and demand for great service. Coffee Break: Not Just Your Ordinary Coffee will strive to build loyal customer base by offering a great taste and varieties of coffee in relaxing

environment of its own coffee stall located at the Pamantasan ng Lungsod ng Maynila President Ramon Magsaysay Entrepreneurial Center (PRMEC), 2 nd floor

B. COMPETITIVE DISTRIBUTIONS The group resolute to put Coffee Break: Not Just Your Ordinary Coffee at President Ramon Magsaysay Entrepreneurial Center (PRMEC) 2 ND floor of Pamantasan ng Lungsod ng Maynila (Intramuros, Manila) where there are many food stalls inside the University that offers different kinds of foods and drinks such as pizzas, tofu products, siomai, burgers, pica pica, fried noodles, shakes and other beverages. Their prices range from ten pesos to twenty pesos for the pastries, and twenty pesos to forty pesos for the beverages. Stalls offered foods to students, faculties and staffs that contain preservatives and the process of preparing of foods are hasty thats why foods are not cooked well and properly. The drinks that kiosks and stalls sell are not hale and hearty and not properly fit for those people who are on a diet and with absorption struggle. C. Proposed Market Plan (Business Logo) With our business location inside the President Ramon Magsaysay

Entrepreneurial Center (PRMEC) of Pamantasan ng Lungsod ng Maynila (Intramuros, Manila), the students of the said university are our target market to be our primary customers in our coffee stall business named Coffee Break: Not Just Your Ordinary

Coffee. It will be situated specifically in the 2nd floor area of the mentioned building where the students take their beverages (Swirly Bitz) and where they use the comp shop for school purposes during their free time. Satisfying the gaps in the market, through our objective of providing a variety of coffee with different pair ups of pastries like bread, doughnuts, brownies we also aim to situate these products on suitable and affordable prices so that our target market would afford to taste and buy it. And for this type of business, we will be distributing our products all the way through 'direct selling', because it is wherein face to face transaction with the customers are involved. In relation with our aim to sell these products with affordable prices, we set a range of P10.00-P20.00 for our food and P20.00-P40.00 for beverages. The reason behind this is because of the use of coffee as the main product of our business that will turned it to different variety of beverages using coffee and paired up to pastries like breads, doughnuts and brownies. Knowing its dietary and nutritional value, it is also a great alternative for rice products and for juices because it is cheaper than them. We have already conducted our survey and the suggestions of the respondents are also an added factor for the suggested retail price and products.

For customers to be familiar with the quality of products and services, we have come up to promotional strategies on our first two days for our business opening:

1. First 50 customers will get 50% discount on our coffee products 2. For every purchase of the second coffee product, they will get a 1 free pair up