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Chapter 2

MARKET STUDY

The purpose of this chapter is to provide information that will reflect the

status of the market in the area of business.

For the business to prosper, it should be given time and effort. The

proponent of this business must have the desired creativity so as to be able to

provide quality services to its customers. The fulfillment of the needs and

wants of its customers or target market (Household, Apartment and Boarding

House Owners) must be the key objective of its recommended business.

The proposed business will be engaged with the selling of home

beddings. “5 ANGELS HOME BEDDINGS” will selling home beddings in

Purok Mahayahay, Townsite, Kingking, Pantukan, Davao de Oro. This

business will offer home beddings at a reasonable price. This will be situated

at a comfortable and secured place. Cost of the products varies upon the

request of the customers. Through the use of modern technology, the firm will

post advertisement through internet access. The proponents are confident

that possible number of customers will increase through this marketing

strategy.

In every project, feasibility marketing aspects is the most important

because it requires analysis of the business total demand and supply,

projected demand and supply gap analysis, price study, production cost, the

projected price, and the promotional activities.

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Description of the Products/Services

The proposed business is engaged in selling home beddings. This

business produces high quality of product and services. It is basically similar

to its competitor when it comes to our product.

The “5 ANGELS HOME BEDDINGS” offers home beddings like

blanket, pillow case and bed sheets. It produces high quality of home

beddings that are not easily damage at affordable price and can sustained

either sunny or rainy days.

Marketing Tools

 Tarpaulin

 Internet (Social Media Plot Form) Facebook and YouTube

 Mouth system or word of mouth

Use of the Product

The “5 ANGELS HOME BEDDINGS” is a kind of business wherein it

sells home beddings like blanket, pillow case and bed sheets with good

quality of the product. As we all know, there are many households,

apartments and boarding houses owners in the said location.

The customers will ask for their preferred items. After this, the manager

or cashier will find the item. And lastly, the customers will pay to the cashier.
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Target Market

The main customers of “5 ANGELS HOME BEDDINGS” are the

households, apartments and boarding houses owners of Barangay Kingking

and other barangays of Pantukan, Davao de Oro.

Target Costumer Population

Households – Brgy. Kingking 14, 655

Apartment Owners 3

Boarding House Owners 15

Other Nearby Barangays 21,575

Total 36,248

Demand

It is essential to know the demand of the business in order to answer

the customer needs and wants. Knowing the demand will help to determine

the trend for the selling of home beddings business industry. The researchers

gather data to through and interview to the household, apartment and

boarding house owners and other existing and prospective customers.

Historical Demand

The table shows the historical demand for the last five years from the

competitors based on the data gathered.

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HOME BEDDINGS
YEAR
PILLOW
BLANKETS BED SHEETS
CASES

2018 5,181 6,540 5,070

2019 5,275 6,795 5,425

2020 5,773 7,015 5,655

2021 5,928 7,285 5,915

2022 6,441 7,720 6,250

Projected Demand

Based on the historical demand that the researchers gathered, the

proponents used the arithmetic straight-line method in computing the

projected demand of home beddings. Below are the steps in computing the

projected demand for the next five years.

Step 1. Difference of most recent and earliest data:

HOME BEDDINGS
YEAR
BED
BLANKETS PILLOW CASES
SHEETS

2022 6,441 7,720 6,250

2018 5,181 6,540 5,070

Difference 1,260 1,180 1,180

Step 2. Total number of years minus 1: (5 years – 1 = 4)

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Step 3. Divide step 1 by step 2:

BLANKETS: 1,260 / 4 = 315

PILLOW CASES: 1,180 / 4 = 295

BED SHEETS: 1,180 / 4 = 295

Step 4: Projected Demand

Previous Year’s demand plus the computed difference from Step 3.

YEAR BLANKETS TOTAL

2023 6,441 315 6,756

2024 6,756 315 7,071

2025 7,071 315 7,386

2026 7,386 315 7,701

2027 7,701 315 8,016

YEAR PILLOW CASES TOTAL

2023 7,720 295 8,015

2024 8,015 295 8,310

2025 8,310 295 8,605

2026 8,605 295 8,900

2027 8,900 295 9,195

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YEAR BED SHEETS TOTAL

2023 6,250 295 6,545

2024 6,545 295 6,840

2025 6,840 295 7,135

2026 7,135 295 7,430

2027 7,430 295 7,725

Supply

The supply in the market refers to currently provider (T&J Enterprise,

Yuzon Merchandise, Ellies R2W and Triple M General Merchandise) of home

beddings like blanket, pillow case and bed sheet in the area. According to an

interview conducted by the researchers on the target clients, the demand for

the home beddings in this area is high.

Historical Supply

Below shows the sales data gathered by the researchers for the last

five years from the existing suppliers.

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HOME BEDDINGS
YEAR
BLANKETS PILLOW CASES BED SHEETS

2018 2,836 3,700 3,030

2019 2,975 3,815 3,095

2020 3,065 3,986 3,285

2021 3,215 4,065 3,425

2022 3,436 4,240 3,610

Projected Supply

Based on the historical supply that the researchers gathered, the

proponents used the arithmetic straight-line method in computing the

projected supply of home beddings like blanket, pillow case and bed sheet.

Below are the steps in computing the projected supply for the next five years.

Step 1. Difference of most recent and earliest data:

HOME BEDDINGS
YEAR
BLANKETS PILLOW CASES BED SHEETS

2022 3,436 4,240 3,610

2018 2,836 3,700 3,030

Difference 600 540 580

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Step 2. Total number of years minus 1: (5 years – 1 = 4)

Step 3. Divide step 1 by step 2:

BLANKETS: 600 / 4 = 150

PILLOW CASES: 540 / 4 = 135

BED SHEETS: 580 / 4 = 145

Step 4: Projected Supply

Previous Year’s supply plus the computed difference from Step 3.

YEAR BLANKETS TOTAL

2023 3,436 150 3,586

2024 3,586 150 3,736

2025 3,736 150 3,886

2026 3,886 150 4,036

2027 4,036 150 4,186

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YEAR PILLOW CASES TOTAL

2023 4,240 135 4,375

2024 4,375 135 4,510

2025 4,510 135 4,645

2026 4,645 135 4,780

2027 4,780 135 4,915

YEAR BED SHEETS TOTAL

2023 3,610 145 3,755

2024 3,755 145 3,900

2025 3,900 145 4,045

2026 4,045 145 4,190

2027 4,190 145 4,335

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Demand and Supply Gap

BLANKETS
UNSATISFIED
YEAR
DEMAND
DEMAND SUPPLY

2023 6,756 3,586 3,170

2024 7,071 3,736 3,335

2025 7,386 3,886 3,500

2026 7,701 4,036 3,665

2027 8,016 4,186 3,830

TOTAL 36,930 19,430 17,500

PILLOW CASES
UNSATISFIED
YEAR
DEMAND
DEMAND SUPPLY

2023 8,015 4,375 3,640

2024 8,310 4,510 3,800

2025 8,605 4,645 3,960

2026 8,900 4,780 4,120

2027 9,195 4,915 4,280

TOTAL 43,025 23,225 19,800

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BED SHEETS
UNSATISFIED
YEAR
DEMAND
DEMAND SUPPLY

2023 6,545 3,755 2,790

2024 6,840 3,900 2,940

2025 7,135 4,045 3,090

2026 7,430 4,190 3,240

2027 7,725 4,335 3,390

TOTAL 35,675 20,225 15,450

Apparently, there is a total unsatisfied demand of 17,500 (36,930-

19,430) for the blankets, 19,800 (43,025-23,225) for the pillow cases and

15,450 (35,675-20,225) for bed sheets for the next five years. Hence, the

projected demand is increasing and the projected supply is increasing, it

indicates that the proposed project is feasible and profitable. Higher demand-

supply gap is favorable to the proposed business.

The qualitative descriptive attributes for the demand and supply gap

are strength of the proposed business; affordable price of the services offered

to have a greater number of customers; and high quality of materials with

good quality of services to meet the satisfaction of the customers.

Market Analysis

Market share simply refers to the share of the proposed project in the

total demand. It is the ratio of what the proposed project can sell in relation to
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the total projected demand. Market share, therefore, is not the demand for the

products or services.

The proponents consider the difference between supply and demand

as its immediate market share data under the following conditions:

1. That the existing suppliers have utilized fully their supplies capacities;

2. That there are no expected new entrants to sell same products.

Using the hypothetical data above, if the total future demand

requirements for the next five years is 36,930 for the blankets, 43,025 for the

pillow cases and 35,675 for the bed sheets; and the present suppliers can

only produce 19,430 for blankets, 23,225 for the pillow cases and 20,225 for

bed sheets, then there is an unsatisfied demand of 17,500 for blankets,

19,800 for pillow cases and 15,450 for bed sheets.

In this case, the expected market share of the business for the next five

years is 47% for blankets, 46% for pillow cases and 43% for bed sheets.

Market Share of 5 Angels Home Beddings

TOTAL
UNSATISFIED MARKET
BICYCLE PROJECTED
DEMAND SHARE
DEMAND

Blankets 17,500 36,930 47%

Pillow Cases 19,800 43,025 46%

Bed Sheets 15,450 35,675 43%

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Price Study

It is one of the considerations of the customer in buying a product. If

the prices lower, they will encourage to buy to our product the home

beddings. The price is based on the data gathered from existing suppliers.

Below is the price list of our product

PRODUCT AMOUNT

Blankets P 180.00 each

Pillow Cases P 45.00 per pack

Bed Sheets P 275.00 each

Projected Sales

The table shows the projected sales of 5 Angels Home Beddings

based on the price and the quantities to be sold.

Projected Sales of 5 Angels Home Beddings

BLANKETS
SALES
YEAR
QUANTITY TO REVENUE
SELLING PRICE
BE SOLD

2023 ₱180.00 3,170 ₱570,600.00

2024 ₱180.00 3,335 600,300.00

2025 ₱180.00 3,500 630,000.00

2026 ₱180.00 3,665 659,700.00

2027 ₱180.00 3,830 689,400.00

TOTAL 17,500 ₱3,150,000.00

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PILLOW CASES
SALES
YEAR
QUANTITY REVENUE
SELLING PRICE
TO BE SOLD

2023 ₱45.00 3,640 ₱163,800.00

2024 ₱45.00 3,800 171,000.00

2025 ₱45.00 3,960 178,200.00

2026 ₱45.00 4,120 185,400.00

2027 ₱45.00 4,280 192,600.00

TOTAL 19,800 ₱891,000.00

BED SHEETS
SALES
YEAR
QUANTITY TO REVENUE
SELLING PRICE
BE SOLD

2023 ₱275.00 2,790 ₱767,250.00

2024 ₱275.00 2,940 808,500.00

2025 ₱275.00 3,090 849,750.00

2026 ₱275.00 3,240 891,000.00

2027 ₱275.00 3,390 932,250.00

TOTAL 15,450 ₱4,248,750.00

The business is located at Purok Mahayahay, Townsite, Kingking,

Pantukan, Davao de Oro. The location of the business is strategically

favorable for its operation because we are in the right place to attract

customers for this we can survive in our daily operation.

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The 5 Angels Home Beddings target all the households, apartments

and boarding houses owners of Barangay Kingking and nearby Barangays.

Proposal Marketing Program

 Our product is home beddings like blanket, pillow case, and bed

sheets which has a good quality of fabric.

 Our pricing method that will use is cost plus pricing because we

base our price to the total cost that we consumed in producing

the product.

 As part of the marketing and program, 5 Angels Home Beddings

have a tarpaulin in strategic place and we create web page.

 5 Angels Home Beddings will be using the social media to

promote their services offered.

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LOGO DESIGN
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SWOT ANALYSIS

STRENGHTS WEAKNESSES OPPORTUNITIES THREATS

*Good quality services *New entrants to the *Establish another branch *New Competitors

*High quality standard of business *Work opportunities to the *High quality standard of

product *Small business area community home beddings sell by

*Meet Customer *Upgrade the services competitors

Satisfaction offered like other fabric

*Affordable price materials like furniture

*Marketing Strategy beddings.

*Clean and order business

establishment