CHAPTER 1

MARKETING STUDY

1. INTRODUCTION

This chapter presents the product description of the business as well as its

rationale and market analysis. The researchers conducted a survey on target customers

and data mining from previous studies in order to determine the demand and supply.

This chapter is divided into six parts, the (1) introduction, consisting of the objectives,

scope and limitation, methodology and assumptions; (2) service description and

rationale, (3) market analysis, consisting of market segmentation, demand, industry,

competitor, gap, and channel analysis; (4) market share, (5) marketing strategy, and the

(6) conclusion.

1.0 Objectives

The study primarily aims to determine the market feasibility of manufacturing

ceiling boards made from coconut coir as an effective thermal insulator.

The study specifically intends to:

1. Determine the product’s potential market by obtaining data required to assess

supply and demand and discover any gaps that could affect market share;

2. Create a product design that includes the characteristics of the product and

provide information that includes the raw material required, method for

manufacturing and processing, machinery and equipment, project site and plant

layout, and waste management;

 3. Present a corporate and legal structure that includes the vision and mission of

the company, organizational structure, laws and regulations, and staff function

and responsibilities;

4. Verify the product’s profitability by estimating the required capital, calculating

overall project expenses and profits, and putting together the financial accounts.

5. Deliberate the impact and importance of the product to the community.

1.2 Scope and Limitations

The production of ceiling board thermal insulation made from coconut coir will be

examined from the perspectives of marketing, technical, financial, management, and

socioeconomic.

The researchers will collect qualitative and quantitative data through survey

questionnaires and interviews. To establish the supply, the respondents for marketing

analysis include construction firms and hardware stores in the municipality of Cavite

particularly at Dasmariñas, Bacoor, and Imus proper.

Anything outside the stated parameter will not be part of this study.

1.3 Methodology

The following techniques were used by the researchers to gather relevant

information that are helpful for this study:

● Interviews - The researcher conducted a face to face interview in the municipality

of Dasmariñas Cavite, constructor firm and retailer.

● Google Form - The researcher used Google Form to disseminate questionnaires

and to gather data for demand and willingness.

 ● Research and information gathering - Conduct thorough research on the internet

for further studies and information regarding this project.

● Market research - The researcher Identifies and evaluates the target market for

thermal ceiling board insulation made from coconut coir. To analyze market size,

growth potential, competition, customer preferences, and regulatory

requirements.

1.4 Assumptions

The researchers projected the following assumptions

2.0 PRODUCT DESCRIPTION

This product is a high performance thermal insulation ceiling board made of renewable,

natural, safe, and sustainable materials such as coconut coir. Any interior space can

benefit from its exceptional insulating properties. Its exceptional insulation rate is made

possible by the unique coconut coir composition that gives it its light weight and ease of

installation. Its adaptability makes it possible to fit over any ceiling board, and its

capacity to hold heat ensures that air temperatures are consistently and comfortably

warm.

2.1 Product Background

The idea of creating a ceiling board thermal insulation made from coconut coir is an

innovative approach to an age-old problem of providing thermal insulation in ceiling

structures. According to Iwaro, J. and Mwasha, A. (2019), Coconut coir is a natural fiber
that has been found to be an effective material for thermal insulation boards and ceiling

boards because it has the required attributes to maintain thermal comfort and improve

energy efficiency. The product is designed to provide superior thermal insulation that is

more efficient than traditional insulation materials such as fiberglass and foam board. In

addition, this product could provide an environmentally friendly and sustainable

alternative for insulation.

2.2 Product Rationale

The proposed ceiling board thermal insulation made from coconut coir, the rationale will

focus on its viability as a product, the benefits and advantages it offers, and its potential

market appeal.

Ceiling board thermal insulation made from coconut coir is a viable product

option due to its many advantages. According to Alcequiez, E. (2021) Coconut fiber has

coefficient of less than 0.04 (W/(m-K) meaning the lower the value for thermal

conductivity the better insulation performance, it’s considered as an excellent thermal

insulator, compared to other conventional thermal insulators. It has several direct

benefits that appeal to the market. First, it provides better insulation compared to

traditional synthetic insulation materials. This helps reduce energy costs and increase

overall energy efficiency in residential and commercial buildings. Additionally, by

utilizing a natural product, it is a more eco-friendly and sustainable option, which

appeals to consumers in terms of environmental product stewardship. Furthermore,

coconut coir is readily available, making it an economically attractive insulation option

due to its lower cost to produce and source.

3.0 Market Analysis

3.1 Market Segmentation Analysis

Market Segmentation is a marketing strategy that assists a corporation in dividing

a large target market into smaller and more defined groups.

● Industry

The manufacturing company will serve its ceiling board thermal insulation in selected

construction firms and construction hardware supplies in Cavite. Based on the data

gathered, there are overall 150 Construction firm and construction hardware supplies in

Dasmariñas, Bacoor, Imus, Cavite

● Purchasing Approaches

The company will acknowledge mass- produce requests from its clients and convey

them, while those clients that will buy in smaller quantities must go for a walk-in order

to the company.

● Product Usage

The company will manufacture a ceiling board thermal insulation made from coconut

coir waste, which will serve as a usable product in business. Ceiling board thermal

insulation is more practical to use due to its more durable rather than the usual thermal

insulation.
Table 2.1 Geographical Limits

VARIABLES DESCRIPTION

Country Philippines

Country Region Region IV - CALABARZON

Province Cavite

Municipality Dasmariñas , Bacoor, Imus

Number of Target Markets 187

The study will take place in Dasmariñas, which has 130 construction firms and

construction hardware supplies, Bacoor has 131 construction firms and construction

hardware supplies and Imus has 102 construction firms and construction hardware

supplies. The target markets are Construction firms, specifically residential, commercial

builders and construction hardware supplies within the municipality of Dasmariñas,

Bacoor and Imus Cavite.

3.2 Demand Analysis

Demand analysis is one of the most important considerations to determine sales

forecasting, pricing product, marketing and advertising, spending, manufacturing

decisions, expansion planning. The proponents gathered data regarding the product by

means of a survey, interview and obtaining data at establishments of the target market,

Department of Trade and Industry Philippines Trece Martires Office, and Government

agency websites.
 3.2.1 Demand Determinants

Survey Results

A survey was conducted to assess the feasibility and potential demand for

manufacturing of ceiling boards made from coconut coir. The purpose of the survey was

to gather information about the willingness of the consumers. This section presents the

result of the survey, including an analysis of the responses to each question. The

results are presented in the form of tables for easy interpretation of the data.
Price

1. How much are you willing to pay for the thermal Ceiling board insulation made

from coconut coir? size (60x60)

Objective: This question aims to know the respondents price range for the product.

2. Are you willing to purchase a thermal ceiling board insulation made from

coconut coir?

Objectives: This question aims to determine the interest of the respondent in a product

that would significantly help out in assessing a ceiling board thermal insulation maturity

accurately.

Population

The population is the state of the potential number of consumers of

Year
Historical Demand

The historical number of construction firms and hardware stores in the municipality of

Cavite particularly at Dasmariñas, Bacoor, and Imus proper. From 2019 to 2023 is

shown in Table 1.

3.2.2 Demand Projection

3.3 Industry Analysis

3.3.1 PEST

POLITICAL

The industry viability of manufacturing ceiling boards made from coconut coir as an

effective thermal insulation, might be affected by political factors. Such as government

regulations including product standards, safety requirements, environmental policies,

and trade barriers. Before establishing a manufacturing facility for making thermal

insulation, it is necessary and important to complete the permits and clearances and

follow the government regulations.

ECONOMICAL
It is important to analyze and consider the economic factors of establishing a

manufacturing ceiling board made from coconut coir as an effective thermal insulation.

We must consider the availability and cost of coconut coir, analyzing the stability of

coconut coir prices and potential fluctuations helps determine the manufacturing cost

and profitability. Also we must consider the economic stability, factors such as inflation

rates, currency stability, and economic growth prospects can impact market conditions,

consumer purchasing power, and the overall business environment.

SOCIAL

The industry viability of manufacturing ceiling boards made from coconut coir as an

effective thermal insulation might be affected by social factors. Such as understanding

the perception and acceptance of coconut coir based insulation between architects,

constructors, and end users is crucial to have. Assessing their preferences, concerns,

and openness to use new materials enables one to determine market acceptability and

potential barriers.

TECHNOLOGICAL

In terms of technological aspects, one factor that needs to be considered for

establishing a manufacturing ceiling board made from coconut coir as an effective

thermal insulation is. Manufacturing technologies and process of producing thermal

ceiling insulation from coconut coir, by assessing the efficiency, scalability, and cost-

effectiveness of these technologies it will help to determine the feasibility of large-scale

production. Also ensuring the quality and performance of thermal ceiling insulation
where it requires quality control and testing process, it will help to maintain product

standards and compliance with regulations.

3.4 Competitor Analysis

Competitor analysis is a process of identifying the competitor’s strengths and

weaknesses. It assists the company in advancing prospects and producing or

establishing a company’s distinctiveness among competitors.

3.4.1 Background of Existing Competitors

Betafoam Corporation is a manufacturer and supplier of thermal insulation and

specialty packaging products in the Philippines. The company was founded in 1997 and

began operations in 2003 as a manufacturer of PE foam products. From a mere

manufacturer of PE foam, Betafoam evolved to offer a wide array of insulation and

packaging solutions. The company’s main branch is at Block 12 Lot 5, Dasma

Technopark, Governor's Drive, Paliparan 1, Dasmarinas City 4114 Cavite.

3.4.2 SWOT Analysis

Strength Weaknesses

● Provide a unique and visually

pleasing ceiling. ● Not as effective at blocking sound.
● Reduce heat transfer from the ● Not suitable for extreme cold
ceiling.
● Prevent moisture buildup and
condensation issues within the
 ceiling space.

Opportunities Threats

● Growing demand for aesthetically ● Technological limitations

pleasing materials. ● Fluctuating price
● Can target niche markets.

3.5 Supply Analysis

3.5.1 Supply Determinants

The proponents deliberated the following determinants of supply. The analysis helps the

company have a deeper understanding of the effects of these factors on the supply and

demand product.

A. Number of Product Provider

The number of service providers shows that the greater the number of

service providers means the greater the supply to the market is. In the ceiling

board thermal insulation manufacturing industry, There is only one major

competitor to the markets, it is the Betafoam Corporation.

B. Price of the Product

The price of the product plays a vital role in the survival of the business in

the market. It has a direct effect on the success of the business.

Historical Data

Table:1.1 The number of thermal insulation supplies between 2019 - 2023, according to

statistics from the Betafoam company.

Year Historical Supply of Betafoam

Company
 2019 1000

2020 1200

2021 1500

2022 1800

2023 2000

Source ;

Table 1.1 shows the historical supply of thermal insulation by the competitor in Cavite

particularly in the municipality of Dasmariñas, Bacoor, Imus Cavite from the year 2019 -

2023. The data was gathered through an interview from the manufacturer of Thermal

insulation located in Dasmariñas Cavite.

3.5 2 Supply Projection

YEAR PROJECTED SUPPLY

2024 1000

2025 1200

2026 1500

2027 1800

2028 2000

3.6 Gap Analysis

3.6.1 Demand and Supply Gap

YEAR PROJECTED PERCENTAG PROJECTE PROJ DEMAND- PERCENTAGE
DEMAND E OF D DEMAND ECTE SUPPLY OF
ACCEPTANC D GAP UNSATISFIEDD
E SUPPL EMAND
Y

2024

2025

2026

2027

2028

3.7 Channel Analysis

The Manufacturing Company of ceiling board thermal insulation will serve the

construction firm and construction hardware supplies in Cavite particularly in

Dasmariñas, Imus, Bacoor.

4.0 MARKET SHARE

Market Share of Manufacturing Company of Ceiling board Thermal Insulation and

competitor.

YEAR PRODUCTION DEMAND SUPPLY MARKET SHARE

 CAPACITY GAP

5.0 MARKETING STRATEGY

This business plan is to execute a marketing strategy not simply to build name

and recognition but also to build deeper relationships with the target customer.

5.1 Product Strategy

Coconut coir thermal insulation has unique features and benefits. It will emphasize its

natural and renewable properties, energy efficiency, insulation capabilities, and positive

impact on indoor air quality. A healthier and more energy-efficient living or working

environment is ensured by this environmentally friendly solution, which offers a

sustainable option that complies with client preferences and environmental standards.

5.2 Pricing Strategy

5.3 Promotion Strategy

● Offer Incentives

Offering incentives can be a great way to encourage people to try designed ceiling

thermal insulation by offering discounts, and free installations.

● Online and offline market channels

This can include online strategies such as creating a dedicated website, utilizing social

media platforms, content marketing through online advertising. Offline strategies can

include participating in industry events, and collaborating with architects or interior

designers to showcase the product.

5.4 Location Strategy

The manufacturing company of designed thermal insulation will be located in General

Mariano Alvarez

6.0 CONCLUSION