VI.

MARKET ANALYSIS

A. Market Definition
Target market is the specific audience that will receive and reach the
products or services of a firm. The proponents have chosen the students of Mabini
Colleges, Inc., as their target market. They were chosen due to the limited and
lesser number of population needed and the product will be only sold inside the
school campus.

B. Profile of the Customers

Customers are the ones who purchase and gives life for the continuous
operation of the business. The target customers of the proposed business are the
students of Mabini Colleges, Inc. However, the product will also be offered to the
faculty members, non-teaching, employees of Mabini Colleges, Inc.

C. Competition
There are two kinds of competitors, the direct and indirect. The direct
competitors are those selling products that are the same as the product being
offered by another business. On the other hand, indirect competitors have products
with similarities in structure or in type. In the target locations, the main competitors
are the MC Canteen and the stores that are located around the school. Through
identifying the competitors, the proponents will be able to integrate different ideas
in order to better improve and innovate a product.

D. Demand
The demand is mainly based upon the result of the amount of pieces of the
proposed product that the target consumers are willing to purchase. The target
market of the proposed product will be the students of Mabini Colleges, Inc. which
has the total population of 8,377 students. The proponents subjected the total
population to a statistical treatment specifically the Slovin’s method in order to
determine the number of samples that will be appropriate with the total population
size. A 5% margin of error was used by the proponents when computing for the

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 sample size. Result shows that 92 percent or 352 of the of the students surveyed
buys chocolate coated products. The 87 percent or 312 students are willing to buy
the proposed product and 40 or 13 percent of the student surveyed are not willing
purchase.

Table 1
Total Number of Students’ Population in Mabini Colleges, Inc.
Target Market 2017 2018 2019
MC Students 7,421 8,142 8,377
Source: Registrar’s Office, Mabini Colleges, Inc.

Table 1 shows the total number of students in Mabini Colleges, Inc. from
school year 2017 up to the present.

Table 2
Historical Demand for Chocolate Coated Products
Year Population 92% Average Total
answered yes Annual Piece Demand
2017 7,421 6,643 329 2,185,547
2018 8,142 7,491 329 2,464,539
2019 8,377 7,707 329 2,535,603
Source: Actual Survey

Table 2 shows the historical demand of chocolate coated products from the
year 2017 up to 2019. Based on the survey conducted by the proponents, it was
concluded that 92 percent of the total population of the students of Mabini
Colleges, Inc. are already purchasing and consuming different kinds of chocolate
coated products. The average number of annual pieces that is being consumed by
a single person annually is estimated to be at 329 pieces of chocolate coated
products. The average annual piece was computed through tallying the number of
chocolate coated products a single person consumes within a span of a day to a
year and is divided by the total number of person that are already consuming

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chocolate coated products. To get the total demand, multiply the average annual
piece by the 92 percent of the population that answered yes.

Table 3
Projected Demand in General
Year Population 92% Average Total
answered yes Annual Piece Demand
2020 8,696 8,000 329 2,632,000
2021 9,015 8,294 329 2,728,726
2022 9,334 8,5876 329 2,825,123
Source: Actual Survey

Table 3 presents the projected demand in general of chocolate coated

products. The estimated total number of population for succeeding years was
computed using the straight line method which is done by subtracting the total
population of the current year with the population of the base year and was the
divided by number the intended number of years. It was identified that there is an
estimated increase of 319 persons in the population annually.

The survey revealed that 92 percent of the population is already purchasing

and consuming different kinds of chocolate coated products with an average of
329 pieces of chocolate coated products consumed per person annually. To get
the total projected demand, multiply the average annual piece by the 92 percent
of the population answered yes.

Table 4
Projected Demand of GAB Chocolate Coated Pili
Year 92% 87% Average Total
answered yes answered yes Annual Piece Demand
2020 8,000 6,960 306 2,129,760
2021 8,294 7,216 306 2,208,096
2022 8,5876 7,471 306 2,286,126
Source: Actual Survey

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 Table 4 shows the projected demand of GAB Chocolate Coated Pili. The
projected total number of population was based upon the 92 percent of students
answered yes in Table 3.

The survey revealed that 87 percent of the population showcased a

willingness in purchasing the proposed product that are being offered by the
proponent, with an estimated average of 306 pieces of chocolate coated pili
consumed per person annually. To get the projected total demand, multiply the
average annual piece by the 87 percent of the population that answered yes.

E. Supply

A factor that should be treated with paramount importance when it comes

to the construction of a business plan is the supply analysis. The supply analysis
will become an instrument in showcasing the number of already available products
in the market which will aid in determining the unmet demand.

Table 5
Supply Analysis for Chocolate Coated Products
Name of Competitor Pieces Sold Annually
MC Canteen 7,200
Velasco Store 10,800
Dayaon Store 1,440
Labrador Store 1,080
Source: Personal Interview

Table 5 shows the supply analysis for chocolate coated product of the
competitors situated in the location where the proposed business aims to serve.
The total supply per year is computed by multiplying the number of chocolate
coated products sold daily by 360 days.

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 Table 6
Historical Supply
Year Supply
2017 16,621
2018 18,468
2019 20,520
Source: Personal Interview

Table 6 showcases the historical supply for all of the chocolate coated
products that are being sold by all of the competitors situated in the location where
the proposed business will be serving. The value of the projected supply was
gathered by interviewing the competitors in and around Mabini Colleges, the value
is comprised of the total number of pieces sold annually by all of the competitors.

Table 7
Projected Supply
Year Supply
2020 22,572
2021 24,829
2022 27,311
Source: Personal Interview

Table 7 shows the projected supply for the different variety of chocolate
coated products. Based on the conducted interview to the competitor there is an
increase in supply annually due to the continuously increasing demand that is the
result of the continuous growth in the population of students in Mabini Colleges,
Inc. The average increase of chocolate coated products annually was estimated
to at 10 percent.

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 Table 8

Demand-Supply Analysis

Year Demand Supply Demand Gap Market

Share
2020 2,632,000 22,572 2,609,428 3.59%
2021 2,728,726 24,829 2,703,897 3.80%
2022 2,825,123 27,311 2,797,812 4.05%
Source: Actual Survey

Table 8 shows the demand-supply analysis for chocolate coated products

and the corresponding market share. The demand gap was computed by
subtracting the total supply to the total demand. The market share is computed by
dividing the product capacity to the demand gap then multiplying it by 100. The
projected product capacity for 2020 is 93,600 pieces and will increase by 10
percent annually.

F. Risks
All businesses can anticipate certain risks to be faced brought by various
factors that might affect the possible sales of the business. In order to prevent it,
careful planning and possible solution should be applied. The table below shows
some risks and its possible solutions:
Table 9
Risks
Risks Solutions
Unsold products The proponent will offer the unsold
products using marketing strategies.
Excess Ingredients The proponent will make sure the proper
storage of excess ingredients and will buy
only the exact amount of ingredient will
be needed in producing chocolate coated
pili.

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VII. MARKETING PLAN

A. Sales Strategy

The proponents will offer their product to their customers in Mabini Colleges,
Inc. The proponent may also sell their product in groups of people or inside of the
classroom during vacant hour. In order to have a possibility to get feedback or advise
from the costumers.

In the future, the proponents can widen their target market by distributing the
product outside the school premises.

B. Distribution Channel

The proponents will sell their product directly to the student of Mabini Colleges,
Inc. The diagram below will be the channel of product distribution.

Producer Consumer

Figure 1
Direct Selling
C. Advertising and Promotion

The advertising scheme of the business is through verbal communication. The

proponent will treat their customers with kindness and respect. In addition, proponent
will use their skills in entertaining the costumers through smooth spoken of words. In
order to convey the customer to buy the product. And make their product at its best to
satisfy the costumers.

D. Pricing and Pricing Policy

The cost plus pricing strategy will be used by the proponents to decide on the
product price. The mark up of about 25 percent is added in exchange of the time and
effort exerted in making the product.

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Total tally (Question #2) Total tally (Question #4)
Daily
40 x 1 x 360 = 14400
27 x 2 x 360 = 19440
19 x 3 x 360 = 20520
13 x 4 x 360 = 18720
6 x 5 x 360 = 10800
3 x 10 x 360 = 10800
Total= 94,680
Weekly
22 x 1 x 52 = 1144
54 x 2 x 52 = 5616
43 x 3 x 52 = 6708
19 x 4 x 52 = 3952
2 x 5 x 52 = 520
2 x 10 x 52 = 1040
Total= 18,980
Monthly
26 x 1 x 12 = 312
22 x 2 x 12 = 528
14 x 3 x 12 = 504
14 x 4 x 12 = 672
1 x 5 x 12 = 60
Total= 2,076
Annually
6x 1 x 1 = 6
2 x3x1=6
1 x 10 x 1 = 10
Total= 22
Semi-annually
6 x 1 x 2 = 12
1 x2x2=4
3 x 3 x 2 = 18
5 x 4 x 2 = 40
1 x 5 x 2 = 10
Total= 84
Total tally= 115 842
Total tally= 95 557
Daily
26 x 1 x 360 = 9360
23 x 2 x 360 = 16560
9 x 3 x 360 = 9720
18 x 4 x 360 = 25900
1 x 6 x 360 = 2160
1 x 7 x 360 = 2520
2 x 10 x 360 = 7200
Total= 77,040
Weekly
35 x 1 x 52 = 1820
70 x 2 x 52 = 7280
30 x 3 x 52 = 4680
13 x 4 x 52 = 2704
1 x 10 x 52 = 520
Total= 17,004
Monthly
16 x 1 x 12 = 192
15 x 2 x 12 = 360
11 x 3 x 12 = 396
3 x 4 x 12 = 144
1 x 5 x 12 = 60
1 x20x 12 = 240
Total= 1,392
Annually
8x1x1=8
4x2x1=8
2
x 5 x 1 = 10
1x9x1=9
Total= 35
Semi-annually
6 x 1 x 2 = 12
5 x 2 x 2 = 20
6 x 3 x 2 = 36
1 x4x2=8
1 x 5 x 2 = 10
Total= 86
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