Market Study

2.1 Research Methodology

The survey was conducted from May 2 to May 15, 2021
through Messenger amongst 400 respondents in Metro
Manila composed of 53.1% male and 46.9% female all users
of cleaning tools. Ages 18 – 60 years old.
2.2 Demand (Average Annual Increase 1.58%

Year Number of Households in

Metro Manila
2.2.1
2016 3,135,392 Consumption for
2017 3,184,931 the past 5 years
2018 3,235,253
2019 3,286,370
2020 3,338,295
2.2.3 Projected
2021 3,391,040
Demand
(1.58%)

Year Population Acceptance Projected

Rate Demand
 (responses)
2022 3,444,618 84% 2,893,479
2023 3,499,043 84% 2,939,196
2024 3,554,328 84% 2,985,636

Projected Demand for 2022

Year Acceptance Rate Target Frequency Percentage Total

(responses) Segment
2022 84% 2,893,479 Once Every 3 8% 925,913
Months
(4 times a
year)
Once Every 4 13% 1,128,457
Months
(3 times a
year)
Once Every 6 79% 4,571,697
Months
(2 times a
year)
Total 100% 6,626,067
 Projected Demand for 2023
Year Acceptance Target Frequency Perce Total
Rate Segment ntage

2023 84% 2,939,196 Once Every 3 8% 940,543

Months (4)
Twice Every 4 13% 1,146,286
Months (3)
Thrice Every 6 79% 4,643,930
Months (2)
Total 100% 6,730,759
Year Acceptance Target Frequency Perce Total
Rate Segme ntage
(responses) nt
2024 84% 2,985,6 Once Every 3 8% 955,404
36 Months (4)
Twice Every 4 13% 1,164,398
Months (3)
Thrice Every 6 79% 4,717,305
Months (2)
Tota 100% 6,837,107
l
Projected Demand for 2024
2.3.1 Historical Supply

( assume your share in supply is 1% of historical supply)

Year Historical Supply Percentage Growth

2016 432,000 1%
2017 436,320 1%
2018 440,683 1%
2019 445,090 1%
2020 449,541 1%
2021 454,036 1%
For the Historical Supply, we searched for the numbers of products
that are produced per month by a business and we multiplied it by the
number of our competitors which is 3.

12,000 (Units) x 3 (Competitors) x 12 (Months)

= 432,000 Historical Sales year 2016

Months = 12
Number of Competitors = 3
12,000 According to the Source,12,000 Pieces of Brooms Sold Per
Month According to Soft Broom Industries
Compound Annual Growth Rate for the Year 2015 – 2019 = 4.97% or
0.994% rounded of to 1% increase per year
2.3.2 Projected Supply
Year Supply Growth
2022 458,576 1%
2023 463,162 1%
2024 467,794 1%

This table shows the Projected Supply for the next 3 years. Expected
Compound Annual Growth Rate 2021 – 2026 = 6% or 1% per year

2.4 Demand and Supply Analysis

Year Potential Projected Demand and

Demand Supply Supply Gap
2022 6,626,067 458,576 6,167,491
2023 6,730,759 463,162 6,267,597
2024 6,837,107 467,794 6,369,313

This table shows the Demand and Supply Gap for each year. The
Demand and Supply Gap for year 2022 is 6,167,491, for year 2023 is
6,267,597, and for year 2024 is 6,369,313.
2.5.1 Product costing per unit
Materials / unit Cost / unit
Rubber 15
Mop 40
Tingting 20
Pole 70
Screw 2
Packaging 10
Total Cost of Materials 157
Direct Labor 45
Utilities Expense allocated 3.49
for Store Room
Depreciation – Store Room 0.40
Equipment, Tools and
Furniture
Total Costs per unit 205.89

Total Cost of Materials = 157

Total Cost of Materials with Labor and Store Room Expenses = 205.89
Mark Up = 69.5 % or 143.11
Selling Price = Php 349
 2.6 Projected Sales

Year Demand – Market Target Sales Per Sales Per

Supply Share Projected Month – 26 Day
Gap Sales per Operating (Pieces)
Year Days in a / 26 days
(Pieces) Month
(Pieces)

2022 6,167,491 .03% 1,872 156 6

2023 6,267,597 .04% 2,496 208 8
2024 6,369,313 .05% 3,120 260 10

This table shows the Projected Sales for each year. The Projected
Yearly Sales for 2022 is 1,872, for 2023 is 2,496, and for 2024 is 3,120.
 3.1 Production Daily and Annually

Year 2022
Month Daily Sales Monthly Distribution Distribution Reserve Total
(Pieces) Sales to Outlets for Online (10%) Monthly
(Pieces) (50%) (50%) Production
January 7 182 91 91 18 200
February 5 130 65 65 13 143
March 6 156 78 78 16 172
April 6 156 78 78 16 172
May 6 156 78 78 16 172
June 6 156 78 78 16 172
July 6 156 78 78 16 172
August 6 156 78 78 16 172
September 6 156 78 78 16 172
October 6 156 78 78 16 172
November 5 130 65 65 13 143
December 7 182 91 91 18 200
Total 1,872
Projected
Sales:
Total 936
Distribution
to Outlets
(50%)
Total 936
Distribution
for Online
(50%)
Total 2,062
Required
Production

Total Projected Sales: 1,872

Total Distribution to Outlets (50%): 936
Total Distribution for Online (50%): 936
Total Required Production (with 10% Reserve): 2,062
 Year 2023
Month Daily Monthly Distribution Distributio Reserve Total
Sales Sales to Outlets n for (10%)
(Pieces) (Pieces) (50%) Online
(50%)
January 9 234 117 117 23 257
February 7 182 91 91 18 200
March 8 208 104 104 21 229
April 8 208 104 104 21 229
May 8 208 104 104 21 229
June 8 208 104 104 21 229
July 8 208 104 104 21 229
August 8 208 104 104 21 229
September 8 208 104 104 21 229
October 8 208 104 104 21 229
November 7 182 91 91 18 200
December 9 234 117 117 23 257
Total 2,496
Projected
Sales:
Total 1,248
Distribution
to Outlets
(50%)
Total 1,248
Distribution
for Online
 (50%)
Total 2,746
Required
Production
Total Projected Sales: 2,496
Total Distribution to Outlets (50%): 1,248
Total Distribution for Online (50%): 1,248
Total Required Production (with 10% Reserve): 2,746
Year 2024
Month Daily Monthly Distribution Distributio Reserve Total
Sales Sales to Outlets n for (10%)
(Pieces) (Pieces) (50%) Online
(50%)
January 11 286 143 143 29 315
February 9 234 117 117 23 257
March 10 260 130 130 26 286
April 10 260 130 130 26 286
May 10 260 130 130 26 286
June 10 260 130 130 26 286
July 10 260 130 130 26 286
August 10 260 130 130 26 286
September 10 260 130 130 26 286
October 10 260 130 130 26 286
November 9 234 117 117 23 257
December 11 286 143 143 29 315
Total 3,120
Projected
Sales:
Total 1,560
Distribution
to Outlets
(50%)
Total 1,560
Distribution
for Online
(50%)
Total 3,432
Required
Production

Total Projected Sales: 3,120

Total Distribution to Outlets (50%): 1,560
Total Distribution for Online (50%): 1,560
Total Required Production (with 10% Reserve): 3,432

Selling / Distribution Split

Description Percentage
Ace Hardware SM 25%
City Manila
Handyman 25%
 Robinsons Place
Manila
Online 50%
Total 100%

Cost of Raw Materials

Year 2022
Material Supplier Price Number of Production Total
Units Requirement Cost
TingTing Mega Hardware 20 1 2,062 41,240
Rubber Mega Hardware 15 1 2,062 30,930
Mop Mega Hardware 40 1 2,062 82,480
Pole Chesa Hardware 70 1 2,062 144,340
Screw Chesa Hardware 2 4 2,062 16,496
Packaging Divisoria Mart 10 1 2,062 20,620
Total 336,106

Year 2023
Material Supplier Price Number Production Total
of Units Requirement Cost
TingTing Mega Hardware 20 1 2,746 54,920
Rubber Mega Hardware 15 1 2,746 41,190
Mop Mega Hardware 40 1 2,746 109,840
Pole Chesa Hardware 70 1 2,746 192,220
Screw Chesa Hardware 2 4 2,746 21,968
Packaging Divisoria Mart 10 1 2,746 27,460
Total 447,598

Year 2024
Material Supplier Price Number Production Total Cost
of Units Requirement
TingTing Mega 20 1 3,432 68,640
Hardware
Rubber Mega 15 1 3,432 51,480
Hardware
Mop Mega 40 1 3,432 137,280
Hardware
Pole Chesa 70 1 3,432 240,240
Hardware
Screw Chesa 2 4 3,432 27,456
Hardware
Packaging Divisoria Mart 10 1 3,432 34,320
Total 559,416