Market Feasibility

Market feasibility of business is deemed as a scientific tool to obtain relevant

information about the realities of a proposed market and to facilitate potential
entrepreneurs in project identification for investment. This will benefit the investor by
showing the business feasibility and its preference over alternative investment
opportunities, making the suitable decision, either by proceeding further to the next
stage of the economic feasibility study, or putting off the idea of the business under
study is subsequently reached.

In order to know if the business is feasible, a survey was conducted through a

questionnaire. The objectives of conducting the survey were aimed to determine the
following:

1. Frequency of students, young professionals and residents who are in need of

movie house services in Barangay Tandang Sora, Barangay Limaha and
Barangay Dagohoy, Butuan City.
2. Their willingness to avail movie house services.
3. Their preferences on the prices for the standard and big room offered in the
movie house.

The actual survey was conducted at the 3 Barangays mentioned above with a total
population of 28,255 which includes both the households and the students of Father
Saturnino Urios University (FSUU) and AMA Computer Learning Center (ACLC). A total of
395 questionnaires were produced.

Demand Analysis

Too many businesses have emerged nowadays. This gives a positive look for
businessmen, who have just started in the industry, to put their investments in certain
business, particularly the Movie House Business in which the field is not much
penetrated.

The location of the business must also be considered. Placing the business near
a school is a strategic location strategy because schools gather students, thereby
gathering the market. Also, students and young professionals nowadays are busy
because of their tight schedules. This makes them a good market for the new business
establishment. Because of these reasons, we have chosen the students of CSU who are
staying in boarding houses, young professionals and residents of Ampayon, Butuan City
as our target market. It has an enrollment of 11,490 students and 2556 households. To
get the desired data as outlined in the objectives, we surveyed 389 individuals.
 20%

Yes
No

80%

Fig. 1. Participants in Need of Movie House Services

 Barangay Tandang Sora, Limaha and Dagohoy has 28,255 total number of
population for the year 2015 and Father Saturnino Urios University has 5,380 total
number of students who are enrolled for the 2 nd sem of the school year 2015-2016. As
for AMA Computer Learning Center, they have 1,620 number of students enrolled in the
2nd sem. With this total number of population and students, the innovators have come
up with a total number of 395 participants.

Out of the 395 participants, the innovators found out that 80% of them, or 316
people, are in need of movie house services. A total of 79 or 20% of the respondents do
not need movie house services.
 4%; 4%
16%; 16%

42%; 42%

Once a week 2-3 times a week Once a month Others

38%; 38%

Fig. 2. Frequency of Watching Movies

Based on the survey conducted, the innovators found out the frequency of
watching movies of the participants. Out of the 316 participants who are in need of
movie house service, forty-two percent (42%) or 133 of them said they watch movie
once a week. While, thirty-eight percent (38%) or 120 answered they watch movies 2-3
times a week and sixteen percent (16%) or 51 responded once a month. The four
percent (4%) or 12 participants answered others. In this 12 participants, 5 of them said
that they watch movies 5 times a week and another 7 said they watch twice a month.
 8%
14%

Php 500.00/movie Php 600.00/movie Others

78%

Fig. 3. Prices for Standard Room (Maximum of 6 persons)

The graph above shows the prices per movie for the standard room that the
participants have chosen. Out of 316, seventy-eight percent (78%) or 246 preferred the
Php 500.00 price per movie while fourteen percent (14%) or 45 chose Php 600.00.
Eight percent (8%) or 25 answered other prices. Of this 25 participants, 5 of them
answered Php 550.00 as the price per movie for the standard room. Then, 15
participants preferred the price Php 400.00. Lastly, 5 participants answered Php 350.00
as their preferred price per movie.
 8%
18%
Php 2,000.00/movie
74% Php 2,500.00/movie
Others

Fig. 4. Prices for Big Room (Maximum of 20 persons)

The graph shows the 316 participants choice on the prices per movie for the big
room of the movie house. About seventy-four percent (74%) or 234 have chosen Php
2,000.00, and only eighteen percent (18%) or 57 answered Php 2,500.00 as their
preferred prices. There were eight percent (8%) or 25 of the participants who answered
different price from the given ranges. The other price was Php 1,500.00 per movie.
Robinsons Place Butuan Cinema 30%

Gaisano Mall Butuan Cinema 20%

At Home 50%

0% 10% 20% 30% 40% 50% 60%

Fig. 5. Where You Usually Watch Movie

 The bar graph above shows the results of the 62% of the competitors market
share which consists of 196 participants from the question Where do you usually
watch movie? Fifty percent (50%) or 98 of the participants usually watch movie at
home. There were thirty percent (30%) or 59 participants who usually watch movie at
Robinsons Place Butuan Cinema and twenty percent (20%) goes to Gaisano Mall
Butuan Cinema to watch movie.

38%

62% HD Movie House

Competitors
 Fig. 6. Market Share

Out of the total sample population of the target market which is 395 participants,
sixty-two percent (62%) of them or 245 is the competitors share and this include also
the 79 respondents who are not in need of movie house service. Of this 62%, Thirty two
percent (32%) of them is the share of At Home, and Robinsons Place Butuan
Cinema has fourteen percent (19%) as its market share. Also, Gaisano Mall Butuan
Cinema has eleven percent (11%) as its market share. Of the 100%, HD Movie Houses
market share is thirty eight percent (38%).

Marketing Plans

Movie House Service and Pricing

HD Movie House will provide the following movie house services on a regular basis:
 Movie House Services HD Movie House

Standard Room (Maximum of 6 persons) Php 500.00 per movie

Big Room (Maximum of 20 persons) Php 2000.00 per movie

Marketing Strategies

This refers to raising customer awareness of the services and creating services
loyalty. The slogan of HD Moviehouse would be ------

1. Leaflets and Flyers

Will be distributed upon the opening of the shop so that the market will be
able to be informed that it is already available
Will be personally done by the owner of the shop which has a budgeted
amount of Php 3,000.00
Will include the following information:
o Services Offered
o Pricelist
o Company Address and Contact Number
o Business Hours
o Business Slogan

2. Tarpaulin
To be placed in front of the shop and along the J.C. Aquino highway
Cost would be Php 2,500.00
Will include the following information:
o Business Name
o Business Address and Contact Number
o Business Logo
o Business Hours
o Business Slogan

3. Word Of Mouth

4. Create A Facebook Page