G.

Factors Affecting the Market

The factors that may affect the market are demand, supply, price, and competitors. These
factors are considered to determine potential problems in the business that they may encounter in
the long run.

G.1. Factors affecting the demand

G1.1. Population Growth. Is one of the primary factors that affect the demand for the
product because an increase in the population also increases the demand for the product in the
market. Therefore, awareness of some changes in the population is needed to meet the needs of
the consumers.

G.1.2. Inflation. The rise in the price level in an economy affects the demand over a span
of time. An increase in the prices of raw materials will directly affect the prices of the produced
product.

G.1.3. Income level. The demand for goods depends on the income of the consumers that
affect their buying decision. The increase in consumer’s income leads to an increase in the
demand and a decrease in income causes demand to fall.

G.1.4. Competition. The primary competitor in the proposed product is the bakery stores
that sell similar products around Calamba City. This involves the competition on selling the
products and promoting to the consumers.

G.1.5. Price. Consumers tend to buy more products at a low price and fewer products at a
higher price. The demand for the product price reflects the consumer’s willingness to pay.

G.1.6. Quality of the Product. Product quality is important for a business. Maintaining high-
quality products will secure a high level of demand and loyalty to the consumers on the other
hand poor quality products affect the consumer’s satisfaction.

G.1.7. Nature of the Good. The proposed project is an example of a basic necessity that will
lead to higher demand.
G.1.8. Pandemic. Consumers are forced to change buying behavior due to the pandemic. The
change of buying behavior affects the demand of some consumers in purchasing some goods.

G.2. Factors affecting the Supply

G.2.1. Location. The target location of Vegetable Bread can be easily found by the
consumer’s, supplier and can be accessed via Google map.

G.2.2. Price. When the price of goods increases, the supply of the goods also increases,
and when the price decreases the supply fall, law of supply.

G.2.3. Cost of Production. The supply of product and the cost of production is relatively
related to one another. An increase in cost production of Vegetable Bread leads to a decrease in
the supply of the product in the market. When the cost of production fall, the supply of
Vegetable Bread increases.

G.2.4. Government Policies. The lower the tax, the higher the supply of the product,
vice versa. Cost of production and supply can be affected through taxes, regulations, and
subsidies.