Yamitea Cafe Company

Submitted by:

Cadiz, Jethro Phil M.

Martinez, Aaron Jones O.

Sajonia, Maxille Gay P.

Sajulga, Kirl Ivan

Submitted to:

Engr. Elenito B. Duran

April 2023
Target Market

Yamiti Cafe Company desires to set its target size for direct consumers in Cagayan de

Oro City. According to the World Population Review (2023), Cagayan de Oro City Population is

753,138 people in 2022. In addition, 32% of the respondents are in the tea drinking population

according to the company survey. With this, the company multiplied the city population and its

tea drinking population to get the target audience, which resulted in a total of 241,004 people.

Cagayan de Oro City Population (World Population Review, 2023) = 753,138 people

Cagayan de Oro City Tea drinking population = 32%

753,138 x 32%

Target audience = 241,004 people

On average, most of the respondents of the company survey drink tea 1-2 times a week.

At maximum, respondents consume tea 8 times a month. Additionally, 44% of the respondents

drink at least 340mL of tea for every consumption. Thus, their average consumption per month

is 2,720mL.

Average tea consumption per month = 2,720 mL

Months in a year = 12

241,004 x 2,720 mL x 12

Target market volume = 655,530,880 mL

To get the target market volume or the annual tea consumption, the total audience must

be multiplied to the average tea consumption in a year. With a total audience of 241,004, annual

tea consumption or target market volume will be 655,530,880 mL.

 Competitors Price ml Price per ml
Kenko Naicha 115 473 0.24
Macao Imperial Tea 110 473 0.23
Tiger Sugar 140 473 0.30
Brave Work Cafe 75 340 0.21
H Proper 150 473 0.32
Milestone Coffee 130 473 0.27
TOTAL 1.57
AVERAGE 0.26

Table 1. Price per mL of Competitors

Average market price per mL = ₱0.26

655,530,880 mL x ₱0.26

Target market volume in peso = ₱170,438,028.80

In getting the peso amount of the target market volume, the company multiplied the

average market price per mL of its competitors ₱0.26 to the target market volume. The peso

amount of the target market volume is ₱170,438,028.80.

Market Size

Yamiti Cafe Company conducted an initial survey to assess the penetration rate of

Cascara Tea in Cagayan de Oro City. According to the survey, 8% of the respondents are

extremely likely to buy the product if it were available today.

Penetration rate = 8% Average market price per mL = ₱0.26

655,530,880 mL x 0.08 52,442,470 mL x ₱0.26

Market size volume = 52,442,470 mL Market size in peso = ₱13,635,042.20

To get the market size in volume, the company multiplied the penetration rate and target

market volume. The market size of Yamitea Cafe Company in Cagayan de Oro City is

52,442,470 mL. By multiplying the average market price per mL of competitors, the market size

in peso results in ₱13,635,042.20.

Market Size (3 years)

Year Volume Market Size Price Growth Average Market Size

Growth (mL) Rate Competitor (peso)
Rate Price/mL

2024 52,442,470 ₱0.26 ₱13,635,042.20

2025 18% 61,882,115 1.3% ₱0.265 ₱16,398,760.48

2026 15% 71,164,432 1.6% ₱0.269 ₱19,143,232.21

Market Potential

In calculating the market potential for Cascara Yamitea, the market size is multiplied by

the price per mL of Cascara Tea. The company decided to set their price at ₱135 for 340 mL of

Cascara Tea, or ₱0.397 per mL.

Pani Tea Price (340 mL) = ₱135

Price per mL = ₱0.397

52,442,470 mL x ₱0.397

Market potential = ₱20,819,660.59

The market potential for Yamitea Cafe Company is ₱20,819,660.59, through selling

Cascara Yamitea at ₱0.397 per mL.

Market Potential (3 years)

Year Price Company Company Market Size Market Potential

Growth Price/mL Price/unit (mL)
Rate

2024 ₱0.397 ₱135 52,442,470 ₱20,819,660.59

2025 1.3% ₱0.402 ₱138 61,882,115 ₱24,886,573.25

2026 1.6% ₱0.409 ₱140 71,164,432 ₱29,077,472.08

References

Figure 1. Tea Consumer Population of Cagayan de Oro City

Figure 2. Tea Consumption in Cagayan de Oro City

 Figure 3. Cascara Tea Penetration Rate

Statista. (2023). Ready-to-Drink (RTD) Tea - Philippines.

https://www.statista.com/outlook/cmo/non-alcoholic-drinks/ready-to-drink-rtd-coffee-tea/r

eady-to-drink-rtd-tea/philippines#revenue

World Population Review. (n.d.). Cagayan De Oro City Population 2023.

https://worldpopulationreview.com/world-cities/cagayan-de-oro-city-population