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CHAPTER 3

MARKET STUDY

Rainbow Bicho can be located at #098 Maysan Road in Valenzuela City

1440, Metro Manila. It is nearby Petron, Maysan 7/11, Jollibee, and Taho Klasiko.

Despite the fact that there are a few competitors in the market, the

commonalities of bicho-bicho and other locations are good for the business. Maysan

was chosen as our business location since it is surrounded by numerous schools,

including Maysan Elementary School, Maysan National High School (MNHS), and

Pamantasan ng Lungsod ng Valenzuela (PLV), as well as several employees because

our target market includes kids, students, and even workers.

According to the Barangay Office in 3s Center Maysan, the number of

residents of Barangay Maysan consists of 25,653 as of 2022. 394 people will be

𝑁
surveyed to represent the entire population using the Slovin's formula of 𝑛 = 1+𝑁𝑒 2

with a margin of error of 0.5. The calculation will be as follows:

𝑁 25.653
𝑛= = 1+(25,653)(0.05)2 = 𝟑𝟗𝟑. 𝟖𝟔
1+𝑁𝑒 2

The charts below indicate the survey questionnaire results.

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1. FAMILIARITY OF BICHO-BICHO

According to the survey, 345 people responded they are familiar with bicho-bicho,

while 49 said they are not. It demonstrates that people are familiar with the bicho-

bicho.

2. FREQUENCY OF EATING BICHO-BICHO

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As shown in the survey, 177 respondents consume bicho-bicho once a month, 44

once a week, and 43 three times a month. While the remaining respondents chose the

other options.

3. TIME OF THE DAY WHEN PEOPLE CONSUME BICHO-BICHO

According to the survey, 259 people prefer to eat bicho-bicho in the afternoon, while

110 prefer to eat in the morning and 25 choose to eat in the evening. It demonstrates

that the majority of respondents preferred to consume bicho-bicho in the afternoon.

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4. WILLINGNESS TO PAY FOR BICHO-BICHO

Out of 394 responses, 277 voted for the lowest price, which is P30-P40, 99 voted for

P41-P50, 14 respondents voted for P51-P60, and the remaining responses voted for

the most costly price. It indicates that respondents are willing to pay the lowest

possible price for bicho-bicho.

5. PREFERENCE FOR TYPE OF BICHO-BICHO

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Half of the participants voted with fillings for the type of bicho-bicho, 93 for original,

and 88 for glazed bicho-bicho. It shows that half of the participants preferred the type

of bicho bicho with fillings.

6. VARIATION OR FILLINGS PREFERENCE

The results for the preference of variant or fillings are as follows: 131 people chose

chocolate, 86 for cheese, 59 for original, 38 for strawberry, and the rest for the other

options.

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7. WILLINGNESS TO BUY BICHO-BICHO

Only 33 out of 394 respondents replied they would not buy the proposed product,

while 361 answered they would. The majority of respondents indicated a willingness

to purchase the proposed product.

8. RAINBOW BICHO WITH A DRINK

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373 participants (94.7%) answered yes to the survey question about their preference

to buy bicho with a drink, while 21 respondents voted no. It illustrates that

participants desired to purchase bicho-bicho together with their favored drinks.

9. TYPE OF DRINK TO PARTNER WITH BICHO-BICHO

Out of 394 participants, 202 selected Iced coffee with bicho-bicho, 103 preferred

Iced milo, while the other participants chose soft drinks.

10. ONLINE ORDERS FOR BICHO-BICHO

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The majority of participants preferred placing orders online, as evidenced by 212

votes, while 182 did not. According to the survey, respondents preferred to buy

online today.

MARKET DEMAND

The researchers were able to determine the market demand for bicho-bicho through

using the process of deduction.

1. Do you eat bicho-bicho?

Yes – 86%

No – 14%

2. How much are you willing to pay for bicho-bicho?

P30-P40 – 70.3%

P42-P50 – 25.1%

P51-P60 – 3.6%

P61-P70 – 1%

3. During what time do you prefer to eat bicho-bicho?

Morning – 27.9%

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Afternoon – 65.7%

Evening – 6.3%

4. How often do you eat bicho-bicho?

Once a day – 8.1% (32)

Twice a day – 2.5% (10)

Once a week – 11.2 % (44)

Twice a week – 9.1% (36)

Thrice a week – 2.8% (11)

Once a month – 44.9 (177)

Twice a month – 10.4% (41)

Thrice a month – 10.9% (43)

• 8.1% of 25,653 = 2,078

• 2.5% of 25,653 = 641

• 11.2% of 25,653 = 2,873

• 9.1% of 25,653 = 2,334

• 2.8% of 25,653 = 718

• 44.9% of 25,653 = 11,518

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• 10.4% of 25,653 = 2,668

• 10.9% of 25,653 = 2,796

25,626
2,078 + 641 + 2,873 + 2,334 + 718 + 11,518 + 2,668 + 2,796 = 28 𝑑𝑎𝑦𝑠/𝑚𝑜𝑛𝑡ℎ

= 915 = 915 expected customers

FORECASTING

The researchers are anticipating to capture at least 2% of the market share

in the area during their first year of operation, but they also intend to raise their

market share by at least 2% every year.

COMPETITORS ANALYSIS

The researchers were able to recognize the business's indirect and direct

competitors. Coffee Us Cafe and Goldilocks are the business's indirect competitors.

While Happy Haus Donuts and LMR Bake Shop are the direct competitors of the

business.

INDIRECT COMPETITORS DIRECT COMPETITORS

Coffee Us Cafe Happy Haus Donuts

Goldilocks LMR Bake Shop

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The company intends to market itself as a business that will cater to the

excess of the competitors after the researchers analyze the menu, pricing, and

strategies of both the direct and indirect competitors.

INDIRECT COMPETITORS DIRECT COMPETITORS

Coffee Us Café - P59 Happy Haus Donuts – P24

Goldilocks – P39 LMR Bake Shop – P15

SWOT ANALYSIS

STRENGTHS WEAKNESSES OPPURTUNITIES THREATS

Product offered is The business is Uses social media There are many

affordable yet still new to the in marketing the competitors in the

high in quality. market/industry. business. area.

The owners are Not all people The location of the Prices of

skilled and like to eat sweet business is where ingredients and

experienced foods and snacks. its target supplies are

workers. customers are. increasing due to

inflation.

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The business is Lack of tools and Has a good and Customers are

located is in a supplies. effective favoring other

crowded area. marketing strategy. products.

The business is The business

assured to give follows the latest

excellent trends and listens

customer service. to their customer’s

suggestions.

Has an eco-

friendly and easy

to bring

packaging.

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