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4.economic Aspect
4.economic Aspect
ECONOMIC ASPECT | 18
In the event of innovation like this, it will be hard for the administration of
supermarkets to create a nationwide alteration of all its mall branches. In
short, to make the reinvention less risky, it is first tested in a single branch
and eventually, to next branches and so on. It depends upon the actual
results of its success whether the intended outcome reflected in the
feasibility study meets the reality.
FACTORS AFFECTING DEMAND
Before projecting and analyzing the demand, Technocart Corporation
considers some factors that can influence its target market. These are:
Price
The price of the product is one of the most important factors that
influence demand. Price is not constant. As the price of the product increases,
quantity demanded falls because of the decrease in the consumers' ability to
buy. In the same manner if the price decreases, the demand increases. Target
market might get discouraged by the expensive capital outlay but if they will
measure the innovation in the long run, it will be much beneficial saving the
salaries of their cashiers which are paid monthly.
Market Size
The determinant of the market size lies on the number of potential buyers
that may patronize the product. This factor affects the demand in a way that if
the product embraces a bigger market size, this will lead to a larger number of
potential buyers and similar to this, a smaller market size leads also to a smaller
target market. Supermarkets in NCR and Region III as the target market of
Technocart are considered a big market size.
Ability to buy
The demand of the E-Cart: ASSET is influenced by the size of the
supermarkets' income and ability to buy. High-end supermarkets have more
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changing
economy, more
investors
and
companies
adapt
to
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practices. To respond with the call of innovation, E-Cart: ASSET revolutionizes not
only the traditional push carts in the supermarkets but also the whole retail
shopping experience. The shoppers are the lifeblood of our target market, the
supermarkets. Shoppers find this innovation as the answer to what they call as
convenience and budget friendly shopping galore. As our target market
responds to the varying demand for innovation these end consumers lift,
Technocart Corporation will also be at par with the trend by providing our target
market this essential improvement, thus increasing the demand for E-Cart: ASSET.
DEFINING THE MARKET
1. Acceptability as to Shoppers
Technocart Corporation clearly identifies supermarkets as its target
market. But before considering the stand and preference of these
supermarkets, the company has considered first the point of view of the
different shoppers who will use E-Cart: ASSET. The choice of the shoppers has
a tremendous effect on the decision of our target market: Would they
patronize our innovation or not?
Survey method and Statistical Treatment of Data
To gather all relevant data and enable the corporation to analyze
the perception of shoppers, the proponents conducted a survey on
different supermarkets. The said survey was done outside certain
supermarkets in Bulacan to make sure that only those who really buy and
make use of trolleys be the precise representation of the survey
participants.
The original sample size of the respondents was 100. It was adjusted
after the meeting of Technocart Corporation with Robinsons supermarket
after it has known that the average number of shoppers who transacts
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with the supermarket daily is 2,200 based on the interview with Ms.
Maricel, manager of Robinsons Supermarket, on July 2, 2015.
The adjusted sample size of the survey consisted of 338 respondents
and was determined based on Slovins formula:
Sample Size =
N
[1+N (e)2]
Where:
N = Population
(e)2= Margin of error*
338 respondents =
1+ 2,200 (.05)2
Division of respondents
1.
point of view of the shoppers may vary depending on the amount of their
spending and their bargaining power. Mostly, High end shoppers might
prefer to use E-Cart: ASSET compare to those shoppers who has a low
bargaining power.
The respondents were divided into two groups: P 3,000 and below
and P3,000 above. The amount of P3,000 was get from the average
spendings of shoppers based on the survey gathered.
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100%
90%
80%
70%
60%
50%
40%
37%
30%
20%
10%
0%
100%
90%
80%
70%
69%
Always
60%
58%
50%
40%
30%
Sometimes
Never
42%
28%
20%
10%
3%
0%
0%
3,000 pesos and below
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100%
90%
95%
95%
80%
70%
60%
Yes
50%
No
40%
30%
20%
5%
5%
10%
0%
100%
100%
95%
90%
80%
70%
60%
Yes
50%
No
40%
30%
20%
10%
5%
0%
0%
3,000 pesos and below
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100%
97%
95%
90%
80%
70%
60%
Yes
50%
No
40%
30%
20%
5%
10%
3%
0%
3,000 pesos and below
2.
Age
This is relevant because the acceptability of E-Cart: ASSET from the
point of view of the shoppers may vary depending on their age. An old
one might not prefer to use E-Cart: ASSET because they are not willing to
adapt technological advancements while a younger one might be willing
to use E-Cart: ASSET.
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100%
90%
80%
70%
Above 40
60%
40 and below
57%
50%
43%
40%
30%
20%
10%
0%
100%
90%
80%
70%
68%
60%
Always
57%
50%
40%
Sometimes
Never
43%
30%
20%
23%
9%
10%
0%
0%
40 and below
Above 40
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100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
100%
95%
Yes
No
5%
0%
40 and below
Above 40
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
97%
95%
Yes
No
3%
40 and below
5%
Above 40
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100%
90%
97%
95%
80%
70%
60%
Yes
50%
No
40%
30%
20%
5%
3%
10%
0%
Above 40
40 and below
2. Acceptability as to Supermarkets
After considering different opinions of shoppers, the next step for
Technocart Corporation is to consider the stand and preference of its target
market which are the supermarkets. This is one of the most important and
crucial part of the aspect since this will define the prospective customers of
the company which will eventually determine the feasibility of E-Cart: ASSET.
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MASSIVE TYPE
BODEGA TYPE
Robinsons
Supermarkets
Merkado Markets
N.E Supermarkets
Robinsons
Easy
mart
CONVENIENT STORES
TYPE
Tibagan
COOPMART
CVC
Supermarkets
Categorization
Massive Type
Bodega Type
Convenient Stores
Supermarket
Robinson's Supermarkets
Merkado Market
N.E Supermarkets
Robinson's Easy mart
Tibagan COOPMART
CVC Supermarkets
No. of Branches in
Region III
NCR
14
25
0
1
6
0
6
2
2
0
4
3
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Robinsons
Supermarkets also allows the team to gather some data primarily financial
and non- financial in nature to be used in the technical and financial aspect
of the study.
As a result of the long discussion, the following results to the stand of
the supermarket.
Per Categorization
100%
100%
100%
90%
80%
70%
60%
Yes
50%
50%
50%
40%
No
30%
20%
10%
0%
0%
0%
Massive Type
Bodega Type
Convenient Store
Type
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100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
83%
Yes
No
17%
Supermarkets
100%
100%
100%
90%
80%
70%
60%
50%
50%
Yes
50%
40%
No
30%
20%
10%
0%
0%
0%
Massive Type
Bodega Type
Convenient Store
Type
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As a whole
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
83%
Yes
No
17%
Supermarkets
3. Economist Perception
In order to ensure the projection of demands regarding E-Cart: ASSET
be feasible, Technocart Corporation seeks the advice of some professionals
specifically a professor and a well-known consulting group in Manila.
The discussion with Mr. Mario Alex Clarin, the Strategic Management
Professor in Baliuag University resulted to a positive evaluation regarding ECart: ASSET.
I like the idea, I believe that this E-Cart: ASSET is the next way that customers
can buy from retail stores because as we all know technology is becoming
miniaturized. Its a very innovative practice in the retail industry because no
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one has start of this in the Philippines, which I know of. I believe there is a
reason and there is a drive for this product in the future.
The discussion with Abrea Consulting Group also resulted to a positive
evaluation.
The idea seems to be interesting. Before we can say it is feasible, the group
must prove that adoption E-Cart: ASSET has a favorable impact on the
income of supermarket. But overall the idea was nice and sounds good.
DEMAND PROJECTION
Supermarkets are patronized mostly by middle age and technology
proficient consumers. Every business structure should be tough enough to heed
the call of technological advancements. End consumers have the never ending
process of satisfying their needs by means of purchasing items from supermarkets
and shopping centers thus creating the raging demand for innovation in the
shopping industry. Innovation that caters convenience among what these
supermarkets consider as their ultimate source of income - the shoppers.
In light of the foregoing, Technocart Corporation foresees the strong
demand of E-Cart: ASSET and its potential entrance to the market because of
the survey which resulted to a favorable response of both shoppers and
supermarket as shown in the illustration above. The flourishing demand for the
product is reflected by the booming number of supermarkets and shopping
centers all over the country that could add up to its prospects.
SUSTAINABILITY OF THE PRODUCT
Sustainability refers to how Technocart Corporation will enable itself to
keep on the track both with the continuous technological innovation and
market stability. It encompasses the continuous enhancement of the products
specifications and the proactive marketing strategies to the varying stimuli of the
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SUPPLY ANALYSIS
In the analysis of supply, Technocart Corporation has conducted a
detailed study regarding the availability of inputs including the raw materials
such as push cart, tablet(monitor), RFID sticker, charger of battery, battery
modules, load balancer TP link, weather proof UTP cable, Rj45 connector, RFID
writer, HP DL380, network attached storage, uninterruptible power supply (UPS),
rack, HP ML150 G5 (Tower Server), RF module, GP90A long range proximity
reader, as well as the availability of labor and overhead that are needed for the
production and operations.
Outsourcing is a practical cost-saving strategy when used properly. It is
sometimes more affordable to purchase a good from companies with
comparative advantages than it is to produce the good internally. Offshore
outsourcing can help in saving time, effort, manpower, operating costs, and
training costs, thus giving overall cost advantage.
In relation to this, Technocart Corporation has opted to contract and
outsource the raw materials for production as enumerated above, and
excluding the supplies such as soldering irons, wires, screws, electrical tapes, and
general purpose tool set which the corporation will provide.
It has been presented in the management aspect the requirements and
qualifications needed for manpower. Also, presented in the technical aspect is
the list of possible suppliers of materials across the country and in China.
Technocart ensures that there is availability of the skilled manpower and enough
materials to meet the future demands.
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