CHAPTER III

MARKET ASPECTS

BUSINESS DESCRIPTION (HAIFAH)

The current construction standard of houses and commercial buildings in General Santos City

doesn’t accurately address the consumers’ need for storage space. A self-storage provides a solution to

the need for temporary additional spaces for the residential market, as well as for small and medium

enterprises.

Espacio is a self-storage facility that rents storage spaces, also known as “storage units”, to

individuals and small to medium businesses. We want to provide extra spaces for our customers to help

them reclaim valuable spaces at home and in their offices. For residential purposes, goods that are

seldom used or those of with seasonal use such as seasonal home decors, luggage bags, sporting

equipment, baby gears, furniture, may be stored in a self storage unit to free up spaces and transform it

into a functional area. Espacio also helps businesses store and manage their inventories, office

supplies, and equipment in a self-storage where it will be secured. However, some items are not

allowed to be stored in the place such as perishable goods, combustible items, and illegal substances.

Storage units come to different sizes – small, medium, and large- and are measured by cubic

meter. Each storage unit is enclosed and secured. Tenants have their own lock and key for their rented

unit. Unlike warehouses, employees of Espacio have no access to the contents of any unit. The entity

will not take possession or control of the things stored, unless there is a lien imposed for non-payment

of rent.

Espacio has storage unit rules and regulations that require at month-to-month contract. This

contract is for the protection of both parties. Contract is renewable and in cases or seasons that

customers have less or more goods or inventory to keep, they may opt to downgrade or upgrade their

units at the end of the month.

 Safety and security of customers’ property are the top priority of Espacio. security cameras and

alarm system are installed in the facility and an in-person surveillance, security guards will be around

the facility for 24 hours. The facility is well lighted inside and out. We also ensure that only the tenants

will have access to their storage unit. the facility is well-maintained to give our tenant a peace of mind

and security whole their belongings are stored therein. In addition, as a last piece of protection, Espacio

offers comprehensive insurance plan that is designed for self-storage. it will help protect and

compensate customers in case of loss or damage. The insurance is managed by a local insurance

company. The customer may also choose their own insurance provider but will be required to sign a

waiver prior moving-in.

If the tenants are in need of packing supplies, Espacio sells items such as packing tapes, boxes,

bubble wrap, and even locks and keys for their storage units.

The facility is located at …….

SURVEY METHOD EMPLOYED (IRIS)

The survey methods employed by the business are online and questionnaire surveys.

Questionnaires are paper-and-pencil instruments that are administered to the respondents. Usual

questions found here are closed-ended questions, which are followed by response options. Online

surveys are online questionnaires that can reach to wherever there is internet access wherein data

collection and data analysis are easy to manage.

The demand for Espacio: Self Storage Solution in Gensan is estimated according to residential level

and Small and Medium Enterprises (SMEs) level.

 DEMAND (ATE RIZZA)

Demand Based on Residential Level

Household Penetration in City/Urban

On residential level, economic situation in the community are reviewed in terms of their employment

rates, household incomeand capitalization rates.

PRICE EMPLOYED UNEMPLOYED SELF-EMPLOYED STUDENT MARKET

DEMAND

150-250

250-350

350-450

450-550

TOTAL

Demand Based on Small and Medium Enterprises

Includes Business Rentals

On SMEs level, Espacio: Self Storage Solution demand is estimated based on population and

average disposable income.

 PRICE EMPLOYE UNEMPLO SELF- STUDE MARKET

D YED EMPLOYED NT DEMAND

150-250

250-350

350-450

450-550

TOTAL

SUPPLY ANALYSIS (IRIS)

Self-storage is a great solution to the growing need for temporary additional space for both the

residential market and small businesses. There are presently 14 self-storage facilities in the country, 13

in Luzon and 1 in Visayas. Currently, there is no self-storage facility in General Santos City, or within

Mindanao.

DEMAND SUPPLY ANALYSIS (AYA)

The demand for rent storage facility keeps on growing over the years as the number of household

and small, medium enterprises increases over the years. Currently there is zero supply in General

Santos City for rent and storage facility.

 The proposed facility can cater an average of 90 rooms for storage. This is calculated from the

number of rooms the facility planned to cater. Espacio Self-Storage Solutions will be operating daily.

Considering that there is zero supply and high demand for rent storage facility in General Santos City

there’s no need to compute the market share.

PRICE (IVY)

SIZE CUBIC METER RATE/m3 Number of Storage Monthly

(m3) Units Income

Small 6 P315 24 45360

Medium 9 P345 20 62100

Large 12 P380 16 72960

Total 180420

*assuming 100% occupancy level

SIZE DURATION

1 TO 12 MONTHS 13 TO 18 MONTHS 19 ONWARDS

(+6%) (+6%)

Small P315 P335 P355

Medium P345 P365 P385

Large P380 P400 P425

*per cubic meter increase

 SIZE DURATION

1 TO 12 MONTHS 13 TO 18 MONTHS 19 ONWARDS

(+6%) (+6%)

Small P1890 P2000 P2125

Medium P2940 P3115 P3300

Large P4320 P4580 P4855

*per storage unit increase

Some amounts were rounded off for convenience and practicality.

MARKET FACTORS (PRETTY GIRL)

There are several factors that could affect the market of Espacio Self-storage Solutions. These

could be both internal and/or external. Internal factors that could affect the business would include the

quality of performance of the employees, cleanliness and orderliness of the building as well as the units,

the availability of the equipment and services offered, and the quality of the facilities and equipment

being used.

External factors that could affect this market would include the number of competitors that would

arise. Competion is a major factor that could affect the market because they will try to win market share

by cutting costs and improving efficiency. Moreover, the change in customer’s tastes and preferences

could also have an effect in the market. The change in customer’s lifestyle and behavior towards

services, specially for renting could also affect the business.

 PRICING STRATEGY (ATE KAREN)

The researchers based their pricing of the self-storage on the results gathered from the

questionnaire. Every storage unit is measured by cubic meter. The prices vary according to the size of

the unit namely: small, medium, and large. The small unit measures 6m 3 and its rate is P315.00 per

cubic meter. The medium unit measures 9m 3 and its rate is P345.00 per cubic meter. It is derived from

adding 10% of the small unit to its own price (i.e. P315.00 * 110% = P345). The large unit measures

12m3 and its rate is P380.00 per cubic meter. The same calculations were made from medium units (i.e.

P345.00 * 110% = P380).

On the 1st half of the 2nd year of the contract, a 6 percent increase would be added to the normal

rate paid by the customer and an additional 6 percent increase on the 2 nd half. The rate on the 2nd half

would remain for the succeeding years if the contract continues.

PROMOTION STRATEGY (IRIS)

Espacio self-storage solution will use varieties of promotional activities to reach the market and to

establish public awareness on its existence as storage space provider. The following marketing

methods will be used to reach the targeted clienteles:

Social Networking

The business will create a website, a facebook page, an instagram business profile, and twitter

account that will contain all the necessary information about the facility. Events, promos,

vacancies, and other related updates will be posted on these pages to reach existing and

potential clients.

Social Influencer Marketing

 The business will hire social media influencers to expand social media reach and gain more

engagements. Social media influencers have access to large audience and have the power to

affect the purchasing decisions of others because of their authority, knowledge, position or

relationship with their audience. They will be of big help for the existence and credibility of the

business to be communicated to the target market.

Posters

The business will put up posters in subdivisions and other residential areas to raise awareness to

home owners of the facility’s existence and services.

The business will also engage in public relations such as conducting seminars on “Proper

Storage” and other related topics.

MARKETING PROGRAM (PEN)

1. Mission

To provide a self-storage business in General Santos City that makes it easy for people to store

their personal belongings without the hassle and clutter of keeping things at home and also to

cater to other businesses who need storage space for equipment like office supplies, furniture,

and more.

2. Target Market

The best customers are the ones that have a longer-term need for storage, such as business

owners who need storage for equipment like office supplies, furniture and merchandise and

those people who need extra space for their personal belongings and who are able to pay for the
 monthly rental by using some method of automatic payment, such as a monthly credit card

payment or an electronic fund transfer) from a bank account or through personal payment.

3. Services

Storage of personal belongings without the hassle and to cater to other businesses who need

storage space for equipment like office supplies, furniture, merchandise and rental of storage

spaces in a climate-controlled building.

4. Marketing and Promotional Strategies

The location of a self-storage facility is a critical factor. It is best if it is located near a highly

populated area that has many renters such as General Santos City. Large billboards are effective

advertising on the nearby freeways. Bus stop ads are also effective. Having the facility painted

with signage to be a prominent advertisement can be very helpful. Easy access to major

freeways is very desirable. We should also have cooperative media advertising campaigns that

coordinate efforts on the Internet with websites using standardized branding and style. They

make use of radio promotion, physical ads, and television ads to create more brand awareness

and advertise the locations in the local area. A business website allows customers to learn more

about our company and the products or services we offer. We can also use social media to

attract new clients or customers by hiring influencers such as vloggers to promote our company.

5. Competition

In order to compete with future competitors, we may consider offering more competitive rates and

cater to a previously underserved area. Hand delivery of discount flyers to apartment buildings

and neighborhoods that contain potential renters helps attract customers. Active digital marketing

is important using the best search engine optimization techniques available. But as of the time

being, there's still no storage business in General Santos City and to be the first storage business

that offers storing services, the level of competition is low.

6. Marketing Goals

We should add moving truck rental services, moving equipment, and supplies to the business to

increase income. We should extend our business operations to include managing a fleet of rental

trucks, vans, and moving trailers. As a business, we can operate side-by-side or as one

combined enterprise. Besides offering moving vehicles, the moving equipment offered for rent

includes furniture dollies, furniture pads, and hand trucks.

7. How does a self storage business make money?

The income streams include monthly rental collections, auction proceeds from past due

accounts, fees, and sales of related products such as moving supplies and locks.

These businesses make extra money from administrative fees, lost key fees, lock removal

services, late fees, and other fees, in addition to the normal rental fee structure. Some charge a

premium rate for the rental of storage spaces in a climate-controlled building. Others offer

insurance, for an additional monthly premium, to insure the contents of the items placed in a

storage space.