In compliance in BA 7A

KUGI HUB

MARKET STUDY

Submitted by:

ELYSIA PEREZ

MERALUN A L. LISONDRA

EDNALYN ALONZO

ANGEL IRISH ARCAMO

MARIAH CHARMINE ROSKA

DESIREE JANE JUSTAN

1:30-3:00 TTH

Submitted to:

NEPTALIE YLAGAN, CPA

INTRODUCTION
Kugi Hub is a study center that will provide a place for studying and leisure for its target
market. It is a place where all students can do all their schoolwork and a place for all dormitory
residents near the area who needs to do their work outside their offices and homes. It will offer
unlimited and fast internet connection for all your research and other requirements.
Aside from providing its target market their need for a learning place, this place will also
give its customers their wants. The hub will provide different packages that customers can avail.
This hub will be a comfortable and conducive place for learning either alone or with friends and
colleagues. The target market of this service will be the college students in general. To be specific,
the target markets will be the both college, formal and informal workers residing near or around
the vicinity. Their age range would be from 18 and above since most of them might be staying in
dormitories and/or apartments with no internet connection. This hub will provide a service for
customers’ education needs and wants. Kugi Hub can be a place for studying and learning, work
and meetings. There is a high demand for a place that will offer fast internet connection, longer
hours of stay, comfortable and clean space for studying and food and drinks.
A. NAME OF THE BUSINESS
The proponents chose a business name that is familiar and native to the target customers.
“Kugi” is a bisaya word that means hard work. Students work hard to have good grades or pass
the exam which is in line with the nature of the services we will offer. Kugi Hub is a study center
that will provide an effective place for studying for its target market.
B. BUSINESS DESCRIPTION AND ITS USES
Many students work hard to acquire good study skills, but not many realize that having
the right place to study is just as important. Study environment can be a big factor in how
successfully a student will learn and retain information and be able to apply it in their
assessments and on the job.
Many students, especially those who are easily distracted or who have trouble keeping
their attention focused, will find that it doesn’t take much noise to pull them out of their reading
and into their surroundings. And it’s not just about volume—the din of a coffee shop may provide
so much noise that it helps screen out other distractions, but a leaky faucet with its intermittent
drips may drive students insane and cause them to reread the same sentence four or five times.
Most study time happens at home or out in public, not necessarily in quiet college libraries. This
can be a problem when it comes to staying focused on studying.
It's almost impossible to stay focused on studies while straining their eyes to read in dim
lighting, or squinting and getting a headache under harsh artificial lights. Adequate and
appropriate lighting is a must for successful studying.
 For a short time, students may be able to stay focused in hot or humid places, but after a
while, these circumstances can become unbearable. Similarly, if they’re too cold, that quickly
becomes all they can think about, and studying suffers.
Even the physical arrangement of furniture and the layout of a room can affect the ability
to study. In a cramped, crowded room, students may feel restricted and stuck—maybe even a
little claustrophobic—and definitely not relaxed and ready to learn. If it’s hard for them to get to
the resources they need—their calculator is on a cluttered desk on the other side of a couch
that’s too big for the room—they can get frustrated or opt to go without resources that would
greatly improve their effectiveness.
It is a place where all students can do all their schoolwork and a place for all dormitory
residents near the area who needs to do their work outside their offices, homes and away from
distractions. It will offer unlimited and fast internet connection for all their research and other
requirements. A place they can study when the libraries are closed, free of noise distractions and
conducive enough for effective studying.
C. TARGET MARKET
Basically, the proposed business primary aims to cater college students near downtown
area. Considering that most college students are living in a These services are essential to
students after library hours and or to students who are boarding in dorms or boarding houses
near the university.
Thus, accounting students are the targeted major consumer of these services.
D. GEOGRAPHICAL AREAS OF DISPERSION
One of the largest school enrollees in the Cebu are located in the downtown area of Cebu
City. As per survey conducted, however, the proponents found out that there are already one to
two existing study centers in central Cebu but not easily accessible to the college students from
the downtown area. With this, the current market structure follows an oligopolistic market
wherein the industry is dominated by a small number of sellers. These include the Gentleman
Café, Tongtea Café, and Oppa Café which often serve as study hubs for students in the area.
While there is a need for another option for students to take the demand is high and above the
capacity of these businesses to cover.
E. MARKET DESCRIPTION
a. Size, Population and Age group.
Kugi Hub will focus its marketing strategies among college students near the University of
Cebu main campus ages 18 to 25 years old. The target market spending capacity is around ₱100
to ₱200 per day. For the four college universities namely the University of Cebu, University of San
Carlos, Cebu Normal University, and Asian College of Technology were located near the target
area with a rough estimates of the total population of the four schools around 50,000.
 Population Data
Total Renting Students for the past three years
2016 963
2017 1045
2018 1,200

b. Location
Demographic
Education levels: The location of Kugi Hub has nearby universities. This will allow greater
opportunity to attract sophisticated college students to avail the service offered.
Major Economic Activity: Commercial and Service Centers
Location: It is adjacent to KFC fast-food chain, along the parking lot of UC, across the Veterans’
bank and SSS with an address of 17-C Barba Building, Jones Avenue, Cebu City.
Map of nearby establishments along Jones Avenue.

Coffee shops and tea shops in the downtown area became a normal venue for students
to study but there is an increasing demand of a place with a sole purpose for studying, aside from
libraries and home, and cozy places to stay as more and more students avail these services as
observed in the university at night.
b. Economic
 The economy of the area around the University is stable and strong as more and more
shops and stores open to serve a huge market. Three big stores -- E-mall, Metro Gaisano, and
Gaisano South, are located near the University offering services and products to the community.
c. Cultural
The university students have a culture to study in a cozy environment often outside their
dormitories/apartments. It is observable at night, especially during exam weeks, that students
flock coffee and tea shops to spend the night studying or doing projects.

F. SURVEY RESULTS

QUESTIONS YES NO

1.Do you live in a boarding house / dormitory? 96% 4%

2. Are you satisfied with the environment your living with? 38% 62%

3. Is it easy to focused on your study with the environment your living with? 12% 88%

4. Are you allowed to accept visitors or an overnight

stay in the place your living with? 44% 56%

5. Have you tried studying in a coffee shops or study centers? 84% 16%

6. Are you satisfied with the service of the coffee shop or

study centers you've visited? 76% 24%

7. Do you take more than 5 hours staying in a coffee shop or study centers? 70% 30%

Study centers Coffee shops

8. Which do you prefer? Coffee Shops or Study Centers? 58% 42%

G. DEMAND
Based on the survey results through questionnaires with a total of 50 respondents,
about 58% of the overall respondents of the target market prefer in study centers and 42%
prefer coffee shops. With a 1,200 estimated total population of college students who are
renting in downtown area. With the use of chain method in determining the demand by
multiplying 1,200 (the estimated total population of renting students around downtown
area) by 58% of students who would prefer to visit in a study centers and multiply the product
 by 30% an estimated percentage of students who will be catered; the result would be about
209 renting students will be our potential costumers in availing our service with a money
budgeted for study centers. In the current market, there is an increase in the demand from
the students who are renting for a quiet and accessible area to study when the school libraries
are closed.

Historical Data

Year Per Day Per Week Per Month Per Year

2016 963 6,741 26,964 323,568
2017 1,045 7,315 29,260 351,120
2018 1,200 8,400 33,600 403,200

H. PROJECTED DEMAND
Arithmetic Geometric Curve

Year Actual Values Year-to-Year increase/ Percentage

Decrease
2016 323,568
2017 351,120 27,552 8.52%
2018 403,200 52,080 14.83%
1,077,888 n=2 23.25%

Average increase/decrease = 23.35% / 2 = 11.68%

Year Projected Years Projected Demand

2019 (403,200 x 1.1168) 450,294
2020 (450,294 x 1.1168) 502,888
2021 (502,888 x 1.1168) 561,625

I. PRICE STUDY
In determining our rate per hour, we have agreed to use the market-based or penetrative
pricing. This is a pricing strategy that revolves around pricing a product or service low enough so
that it attracts customers and captures market share. The main reason we would want to employ
this strategy is to boost the initial presence of the business early on, and set it up in a comfortable
position to capitalize on later sales at the higher price. Additionally, penetration pricing also helps
consumers make the decision to switch between brands because of the lower price. This can be
used to promote brand loyalty effectively. According to the data we collected from the survey
questionnaires, most students spend about 35 pesos per hour. We have interviewed a few of our
competitors regarding their rate per hour. Most study centers we’ve asked have a price range of
35-45 pesos. Which makes it an advantage to us to be able to charge of 30 pesos per hour. Some
students may find it still costly and hereon we add a variety of pricing like bundles 575 pesos for
a whole day or 199 for an overnight stay with free cup of coffee.

J. MARKETING STRATEGIES

a. Service
Kugi Hub is expected to provide offerings that are in line with the vision and mission of
the company. Foods and beverages would also be served. Free one cup of any hot beverages
every 12 midnight with 1 hour stay.
b. Place
The study hub is expected to be located within the vicinity of a university which will
make it more accessible for students even late at night.
c. Price
The pricing strategy that will be employed would be going rate pricing (i.e. Prices are to
be set in comparison with competitors’ products, either by charging the same, more, or less than
the major competitions). As a company in the introduction stage, it would be positioned as a
business that would offer more services, aiming to either satisfy or delight the customers. At the
same time, the customers would avail such services in a competitive price (i.e. same, more, or
less than the major competitions). The Hub will offer a relatively lower price compared to
computer shops and cafes. It will also be more comfortable compared to other places, which
makes it more conducive for learning and having fun.
d. Promotion
The group will use the combination of the promotional strategies. But since the service
business aims to position itself as capable in competing with other study hubs, there would be
more focus on advertising, and publicities and public relations. In terms of creating awareness,
the group should use cheap yet creative advertising strategies. The group could take advantage
of social networking sites and other materials like posters and flyers. To further promote the
image of the service business, the group should use publicities and public relations.
e. Physical Evidence
Chairs and tables should be present. To further add to the “stiff -yet-cozy” atmosphere,
the room must be air-conditioned. The whole place should have wireless fidelity (Wi-Fi)
connection. Charging station will be present as well. Foods and beverages would also be served.
 f. Process Management
The target audience is expected to be informed regarding the service to be provided by
the Kugi Hub via promotional materials or word-of-mouth. Upon creating awareness, customers
could avail various services and bundle packages. Upon entrance, customers would be provided
with stubs. These would serve as proof in claiming certain packages.
g. People
Less people would be needed in this kind of business. One to two persons could be
assigned as the one asking the packages to be availed by the customers. One to two persons
could be assigned for serving the food and beverages.