CHAPTER II

MARKETING ASPECT

I. MARKET DESCRIPTION

The market projection of the study is based on the surveys conducted

within the vicinity of _________. Projection of demand, supply and sales for the
first five years of the operation is based on the different factors like the population
growth, market acceptability, and other aspects. The researchers also
considered the competitors that may affect “Mugspa” Coffee and Spa’s service
prices. The objectives of the proposed project are not merely meeting the needs
or wants of the customer but as well as to exceed their expectations. Knowing
the customers’ demand and supplying them with the right services at “reasonable
prices” will be the key factor to achieve the objectives of the organization.

II. DEMAND ANALYSIS

A. Major Users of the Service

Table 13

Major Users of the Service

Gender Frequency Percentage

Female

Male

TOTAL 100
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Table 13 presents that majority of the respondents who availed of and

experienced body massage and spa are female with ___while male with _____.

_____ are the major users of the service.

B. Demand for the Next Five Years

Table 14

Projected Demand for the Next Five Years

Year Market Target Frequency of Annual Demand

Acceptability Population Visit

Table 14 presents the projected annual demand of spa and massage

services for the years 20_ to 20_. Market acceptability was obtained based on

Table 6 and Figure 6 which shows the respondents who go to a Coffee and spa

center with the total of __Target population was obtained based on Table 1 with

ages 20 to 64 years old. The Frequency of Visit was obtained based on Table 8

and Figure 8 which shows that majority of the respondents go to the spa once a

week with __.The annual demand for 20_ to 20_ is increasing because the target
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population is likewise increasing annually by ______ based on the National

Census Office of _______. In getting the annual demand, Market Acceptability

(______is multiplied by the Target Population (_______ multiplied by Frequency

of Visit (_____). The increase in demand shows that the business will be feasible

when the business will be formed and established.

III. SUPPLY ANALYSIS

A. Competitor’s Analysis

Table 15

Competitor’s Analysis

Competitors Average No. of No. of Operating Days Per

Customers per day Year

Table 15 shows the Average No. of Customers per day of

______________ The data were obtained from Mr. __________, personnel of

________, who was interviewed last ____________ by ___________; from

___________, receptionist of _________, who was interviewed last

______________ by ____________; and from ___________, receptionist of

_________, who was interviewed last _____________ by ____________

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B. Supply for the Next Five Years

Table 16

Projected Annual Supply

Competitors 2015 2016 2017 2018 2019

Total

Table 16 shows the Annual Supply for the Next Five (5) Years. To get the

annual supply, Average No. of Customers per Day x No. of Operating Days per

Year (Ano, et.al, 2013). For Infinima there is an average of twenty five (25)

customers daily multiply by the no. of operating days per year which is 352 days

multiply by annual supply for YEAR of ________multiply by ________to get the

annual supply of ________for YEAR. For COMPETITORS, there is an average

of twelve (___) customers per day multiply by the no. of operating days per year

which is also __ multiply by annual supply for YEAR of ______ multiply by

______ to get the annual supply of _______ And, for Competitors, there is an

average five (5) customers per day multiply by the no. of operating days per year

which is also ____ multiply by annual supply for YEAR of ______ multiply by

_______ to get the annual supply of ________. The annual supply is increasing
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as years passed by due to increase in annual population growth of

________based on the National Census Office of Santa Cruz Laguna.

IV. DEMAND AND SUPPLY GAP ANALYSIS

Table 17

Projected Demand and Supply Gap Analysis for the Next Five Years

Year Annual Annual Supply Gap/Available Market

Demand

2015

2016

2017

2018

2019

Table 17 shows the Projected Demand and Supply Gap Analysis for the

next five (5) years. ________ was obtained by subtracting the projected Annual

Demand to the projected Annual Supply. The Annual Supply for 2015 is _______

less the Annual Demand for ____________ of which give the Gap or Available

Market of __________ that shows the available market for Coffee and spa. This

is necessary to determined “Mugspa” Coffee and Spa’s market share. The

increasing demand and supply was due to the increasing population of the target
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market based on the National Census Office of Santa Cruz Laguna by ___ %

(National Statistic Office).

V. COMPETITIVE POSITION

A. Selling Price

The consumer weighs the price against the perceived value of using the

product.Since pricing is a dynamic process, companies must design a pricing

structure that covers all their products and a variety of constantly changing

conditions.

Price is the amount of money changed for a product or service or the sum

of the values that consumers exchange for the benefits of having or using the

product or service.

Competition-Based Pricing include “Going-Rate Pricing”, where the prices

are set based largely on following competitors’ prices rather than on company

cost or demand. Firms feel that the going rate represents the collective wisdom

of the industry concerning the price that yields a fair return. They also feel that

holding to the going-rate price will prevent harmful price (Ac-ac,2009).

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Table 18

Selling Prices

Services Prices
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A. Competitiveness of Services Offered

Table 19

Competitiveness of Services Offered

Competitors Services Offered



Table 18 and 19 shows the competitiveness of the services offered by the

competitors, _________________. The data were obtained from

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A. Promotional Activities

Table 20

Promotional Activities

MugSpa business

Tarpaulin Tarpaulin Tarpaulin Tarpaulin

Flyers Flyers Flyers Flyers

Facebook Facebook Facebook Facebook

VI. PROPOSED MARKETING PROGRAM

A. Description of Proposed Business

“MugSpa business” Coffee and Spa will introduce and promote

affordable spa wellness system to every customer. Not just relaxation but also as

means of prevention and therapy for healthier body, mind and spirit.

Payment will be on cash basis.

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B. Description of the Proposed Target Market

1. GEORAPHIC

o Location :#

o Climate : Dry

o Region : 4-A

o City :

o Density of the Area : Urban

2. DEMOGRAPHIC

o Age : 20 - 64

o Gender : Male and Female

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C. Proposed Prices

Table 21
Services Offered
Going Rates Pricing
Coffee

Services Prices
Mugspa

P 280.00 P 250.00 P P 239.99

250.00
P 250.00 P P 239.99
250.00
P 280.00 P 250.00 P 239.99
P 350.00 P 50.00 P 239.99
P 350.00 P 260.00 P P 259.99
350.00
P 320.00 P 180.00 P P 169.99
125.00
P 120.00 P 109.99
P 150.00 P 139.99
P 350.00 P 339.99
P 320.00 P 250.00 P P 239.99
150.00
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P 380.00 P 450.00 P P 369.99

400.00
P 400.00 P 450.00 P P 389.99
280.00
P 250.00 P 239.99

P 300.00 P 450.00 P 289.99

P 50.00 P 49.99
P 320.00 P 309.99

Spa

Services Prices
Mugspa

P 280.00 P 250.00 P P 239.99

250.00
P 250.00 P P 239.99
250.00
P 280.00 P 250.00 P 239.99
P 350.00 P 50.00 P 239.99
P 350.00 P 260.00 P P 259.99
350.00
P 320.00 P 180.00 P P 169.99
125.00
P 120.00 P 109.99
P 150.00 P 139.99
P 350.00 P 339.99
P 320.00 P 250.00 P P 239.99
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150.00
P 380.00 P 450.00 P P 369.99
400.00
P 400.00 P 450.00 P P 389.99
280.00
P 250.00 P 239.99

P 300.00 P 450.00 P 289.99

P 50.00 P 49.99
P 320.00 P 309.99

Table 21 shows the Going- Rate Pricing of the existing competitor’s Coffee

establishments, the business owners decided to set the price of the services

based on Competition-Based Pricing, specifically the Going- Rate Pricing. The

prices are low but competitive enough to meet the business’ expected profit by

rendering high quality of services to its customers.

D. Proposed Promotional Activities

1. Posters/ Tarpaulin

Figure 13

Mugspa Poster
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Figure 13 displays the poster of the Mugspa. The researchers

decided to use poster/tarpaulin as the main form of advertisement to reach our

customers. Poster will be placed in the vicinity of Santa Cruz Laguna, where it

can be easily seen.

Two (2) posters will be produced which are good for three (3)

months. The durability of tarpaulin will only last for three (3) months, since the

color and design of the tarpaulin will be faded. The computation would be:

Number of pieces x Unit Prices x Number of times per year=Cost

2 x 350 x 4 = Php. 2,800.00

Source:

2. Website / Internet

Figure 14

Mugspa Facebook Page

Figure 14 displays the facebook page of “Mugspa” Coffe and Spa, created

by one of the business owners, as one of the advertisement. The proponents will

be using free website in order to reach wider range of possible customers. It will
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also provide good communication relationship and customers will be able to give

comments and suggestions for improvements and other concerns.

3. Flyers

Figure 15

Figure 15 displays the flyers of Mugspa. The researchers will also use

flyers as a means of advertisement because it is one of the cheapest ways of

promoting the service yet the most effective way as a promotional strategy. The

Coffee and spa will produce 100 flyers per week. These flyers will be distributed

once a week or four (4) times a month because it can be easily brought to other

places. The computation would be:

Number of pieces x Unit Price x Number of times per month x

Number of months of Distribution = Cost

100 x 0.25 x 4 x 3 = Php. 300.00

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Source:

Open House

Sure way to get an audience of potential clients is to host an open house.

Tour the potential clients in the spa to meet the staff and take a peek at the menu

services. Serve like refreshments and make sure to send each attendee home

with the establishments’business card, brochure and a small thank you gift

(coupon, discount card or sample of a product) and great impression of the

business.

4. Additional Promotional marketing activities/strategies:

 Coupon

-Price Discounts by giving 20% discount in all Coffee and spa services.

- Get a free service on any massage service for a family, friends or

member book for an appointment. Customers will spread the spa by word

of mouth. “Mugspa” will just make sure that it keep tracks of its records on
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how many coupons are already redeemed and the increase in

appointments.

FIGURE 16

DISCOUNT COUPON

 Contest

- Put together a special contest in the spa.

 Promotional Post Cards/Gift Certificates

FIGURE 17

PROMOTIONAL POST CARDS

FIGURE 18
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GIFT CERTIFICATE

 Promo- Holiday Season

- 25% off services for new clients

 Special events (especially during holiday seasons, ie., family reunions that

need massage and spa services).

 Special Discounts

- 10% discount for the next Coffe and spa service.

- Referral Incentive bring a friend/family member get a P50.00 discount on

any spa/massage service and Coffee.

VII. PROJECTED SERVICE

Table 22

Projected Services that will be Rendered for the Next Five (5) Years

Services Percentag Annual Average Minute Interva Number

Offered e of Minutes of s Spent l of
Availment of service Service
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Operatio rendere Rendere

n d d
Annually

Total 100%

Table 22shows the Projected Services that will be Rendered for the
Next Five (5) Years. Annual Minutes refers to the total duration of operation,

For _________________

Formula:

Annual Minutes of
Operation (AMO) =operating time per day x total no. of therapist x operating
day/year

To get the total Number of Service Rendered Annually, for Foot Spa, Hilot with

Ventosa and Massage:

Formula:

Number of Service = Average Service Rendered

Rendered Annually Minutes Spent for each Service +

Interval
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For Foot Spa:

=
30+10

No. of Service Rendered Annually =

For ______________

No. of Service Rendered Annually =

For Massage:
=

No. of Service Rendered Annually =

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VIII. SWOT ANALYSIS

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The company will get a clear picture of what it has and what it lacks, what

to expect and what not to expect. This leads to very powerful tool in marketing

(Diola, 2009).

Strengths

 Competitively priced

 Imported / organic spa products

 Ambiance

 Hospitality of employees

 Wide variety of services of therapist

 Best value for time and money

 Customer satisfaction and delight

 Maximized service potential

Weakness

 Limited market share since “Mugspa” Coffee and Spa is new in this

kind of business.

 High budget investments.

Opportunities
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 Wealth concerns and stress within the minds of customers which is

gradually increasing.

 High growth rate as spa’s are connected to other industries such

as food and herbal.

 Medical tourism looking for alternative health care.

Threats

 The increase number of competitors who will engaged in the same

kind of business

SUMMARY OF MARKETING ASPECT

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This aspect presents the five (5) year demand and supply analysis of the

proposed business. The proposed business will engage in Coffe and spa

services. The Marketing Aspect provides a mechanism on how to advertise and

promote the business’ services effectively and efficiently with the use of different

advertising medium like, i.e., posting tarpaulin, flyers, the utilization of different

social networking sites, which are broader in scope and having an open house

which includes coupons, contests, gift certificates / promotional postcards and

promo for holiday season.

The Marketing Aspect also presents the competitive position of the

business. It shows the competitor’s prices on their services and their promotional

activities. This aspect also shows the projected sales for the next five (5) years.

It also shows the strength of the business that can be used as an

advantage or weaknesses that should be dealt with and turn it into strength and

opportunities that may be used to help the business’ development and threats to

the business be prevented.

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