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vi. Market Analysis

A. Market Definition

The proponents have chosen the students in the Mabini Colleges Inc. as their

target market. They were chosen due to the fact that they were focusing on having

limited target market.

B. Profile of the Customers

Customers are the foundation of any business success. The target customers

of the proposed business are the Mabini Colleges Inc. students both high school and

college. However, the product will also be offered to the faculty members, non-

teaching staff and administrative employees of Mabini Colleges Inc.

C. Competition

Competitor is any person or entity which is a rival against another, they have

potential to take your customers. Competitors have 5 basic types: Direct, Indirect,

Replacement, Potential and Future. The proposed business has only one competitor

which is the Mabini Colleges high school department school canteen. Knowing who

your competitors are, and what they are offering can help you to make your

products stand out. The proponents can use this knowledge to create marketing
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strategies that take advantage of your competitors’ weaknesses and innovate and

improve your products.

D. Demand

The result on how many pieces of the proposed product the consumers are

going to buy will be the basis of demand. The target of the proposed business will be

the students of Mabini Colleges, Inc. which has 8377 students. The proponents

conducted a survey, the results show that 81 percent of the students surveyed in

Mabini Colleges buys/eats Potato rolls. Majority of them are willing to buy the

proposed product with 300 or 97 percent and 9 or 3 percent are not buying or eating

Cheese rolls.

Table 1
Total number of students’ population in Mabini Colleges, Inc.

Target market 2017 2018 2019

Mabini Colleges students 7421 8142 8377

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Table 1 shows the total number of population of students in Mabini Colleges, Inc.

The table shows the increase of number of enrollees, despite of implementing K-12 program

there is a significant increase of first year college as well as in high school.

Table 2
Historical Demand for Cheese roll

Year Population 81% of total Average annual Total demand

population piece/s
2017 7421 6011 206 1238266

2018 8142 6595 206 1358570

2819 8377 6785 206 1397710

Table 2 shows the Historical Demand of Cheese roll from 2017 to 2019. The

proponents conducted a survey and based on it 81% of the population of students in MC

are buying and eating Potato rolls. It has average of Cheese rolls per person annually.

Table 3
Projected Demand of Cheese roll

Year Population 81% of the total Average annual Total demand

population piece/s

2020 8696 7044 206 1451064

2021 9015 7302 206 1504212

2222 9334 7561 206 1557566

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Table 3 shows the projected demand of the proposed business in MC. The projected

total number of students in MC was computed and it shows that there is significant

increase in population annually. To get the projected demand, the average demand per

person annually is multiplied by 81 percent of the total population. 81 percent serves as the

multiplier because the survey revealed that 81 percent of the population of MC is buying or

eating Cheese rolls.

Table 4
Company Projected Demand for Cheese Roll

Year Population 97% of the total Average annual Total demand

population piece/s
2020 8696 8435 268 2260580

2021 9015 8745 268 2343660

2022 9334 9054 268 2426472

Table 4 shows the Company projected demand of the proposed business product.

This table revealed that out of 309 population or students 97 percent of the total

population will buy and eat cheese roll.

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E. Supply

Supply Analysis is one of the most important factors to be considered in the

business plan. It is an evaluation of existing supply condition towards bridging the gap

between the level of supply and level of demand for the proposed project output, it will

also assist the proponents to determine whether there is still an unmet demand for the

product.

Table 5
Supply Analysis for Cheese roll

Name of competitor Pieces sold annually

Mabini Colleges Canteen(high school) 15660

Table 5 shows the supply analysis for cheese roll of existing direct competitor in

Mabini Colleges, Inc. Flora A, Ibana campus where the proposed business intends to serve.

The total supply per year is computed by multiplying the number of cheese roll sold daily.
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Table 6
Historical Supply for Cheese roll

Year Supply

2017 11, 314

2018 13, 311

2019 15, 660

Table 6 shows the historical supply for cheese roll in MC high school canteen. It

shows the increase in supply annually. The table revealed that there is 15 percent increase

in supply annually.

Table 7
Projected Supply for Cheese roll

Year Supply

2020 18, 009

2021 20, 710

2022 23, 817

Table 7 shows the projected supply for Cheese roll in MC. The average increase of

cheese roll sold annually is 15 percent. The projected supply was computed by multiplying

the total supply by 15 percent.

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Table 8
Demand- Supply Analysis for Cheese roll

Year Demand Supply Demand Gap Market share

2020 1451064 18009 1433055 6.31%

2021 1504212 20710 1483502 7.32%

2022 1557566 23817 1533749 8.79%

Table 8 shows the demand and supply gap for cheese roll and corresponding market

share. Total demand is from the table 3 while supply is from table 5. The gap is computed

by subtracting the total supply to total demand. The proponent solved for the capacity in

order for them to compute the market share. The market share is computed by dividing the

product capacity to the demand gap then multiplying it by 100 percent. The projected

product capacity in 2020 is 78000 and will increase by 20 percent annually.

F. Risks

Risks can’t be avoided but risk can be reduced and prevented. In fact, risk-

taking is almost synonymous with entrepreneurship. In order to reduce and prevent it, the

proponents must have risk management and they should implement strategies to deal with

those risks.
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Table 9
Risk

Risks Solution

Dealing with competition Keeping up with industrial changes and trends

Unsold product The proponents will offer the unsold products using
marketing strategies( preferred selling household,
offices and classrooms

Financial risk The proponents will have a financial plan, showing

income projections.

Reputational risk The proponents will have a strategy that

communicates product information and builds
relationships with customers and other stakes
holders.

VII. Marketing Plan

A. Sales Strategy

The proponents will directly sell their products Mabini Colleges, Inc. high

school and college building. The proponents may visit classrooms after the class or

during their vacant hours. In this way, they could get a chance to know their

feedback to be able to improve and innovate their proposed business product.

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B. Distribution Channel

The product will be directly sold to the students in Mabini Colleges,

Inc. both high school and college division. The proponents will personally

sell their product for the first year operation.

C. Advertising and Promotion

The proponents may conduct free product samples or free taste.

Nothing shows confidence in your product like letting your customers

sample it for fee before buying. Additionally, a customer is more likely to buy

something if he/she has just experienced its benefits. If it’s not overly-

expensive to do so, seriously consider letting your customers try your

product before buying.

D. Pricing and Pricing Policy

The proponents may set its price base on the cost or expenses, time

and effort exerted in making the product. Also the quality and size of the
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product must be considered. They can also consider different types of pricing

such as cost-based pricing and penetration pricing, the first one is a strategy

in which a certain percentage of the total cost of production is added to the

cost of the product to determine its selling price, and the second one is a

strategy in which the price charged for product is set artificially low in order

to gain market share, once this is achieved the price will increase.
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Total tally (question #2) Total tally (question #4)

Daily Daily

47 x 1 x 360 = 16920 33 x 1 x 360 = 11880

21 x 2 x 360 = 15120 33 x 2 x 360 = 23760
5 x 3 x 360 = 540 12 x 3 x 360 = 12960
3 x 4 x 360 = 4320 6 x 4 x 360 = 8640
3 x 5 x 360 = 5400 2 x 5 x 360 = 3600
Total= 47160 Total= 60840

Weekly Weekly

37 x 1 x 52 = 1924 34 x 1 x 52 = 1768
69 x 2 x 52 = 7176 59 x 2 x 52 = 6136
31 x 3 x 52 = 4836 48 x 3 x 52 = 7488
9 x 4 x 52 =1872 17 x 4 x 52 = 3536
2 x 5 x 52 = 520 2 x 5 x 52 = 520
Total= 16382 Total= 19448

Annually Annually

27x 1 x 1 = 27 17 x 1 x 1 = 17
21 x 2 x 1 = 42 13 x 2 x 1 = 26
6 x 3 x 1 = 18 5 x 3 x 1 = 15
2 x4x1=8 2 x4x1=8
1 x5x1=5 Total= 66
Total= 100

Semi-annually
Semi-annually
3 x1x2=6
7 x 1 x 2 = 14 5 x 2 x 2 = 20
7 x 2 x 2 = 28 3 x 3 x 2 = 18
2 x 3 x 2 = 12 1 x4x2=8
5 x 4 x 2 = 40 5 x 5 x 2 = 50
4 x 5 x 2 = 40 Total= 102
Total= 134 Total tally= 80456
Total tally= 63776

382 309
309 73 300 9