CHAPTER III MARKETING ASPECT
Marketing is a very important aspect in business since it contributes greatly to the success of the organization. organization. Production and distribution distribution depend largely on marketing. marketing. It is the process of introducing and promoting the product or service into the market and encourages sales from the buying public. Since the goal of marketing is to make the product or service widely known and recognized to the market, marketers must be creative in their marketing activities. Marketing aspect is one of the most useful chapters in the feasibility study. Without marketing, sales may crash and companies may have to close. he success of the business business depends on how the the product is introduced introduced to the potential potential market. he fact fact that that if the propos proposed ed produ product ct will will be accep accepte ted d by the target target market market is then then a determining factor that this pro!ect can be implementable. "#$% M"#&% his is a market market segment at which which a marketing marketing campaign campaign is focused. his is a group of customers that the business has decided to aim its marketing efforts and ultimately deliver its product. he target market of the proposed production of the gumamela shake is the total students of all universities universities located in downtown of 'ebu 'ity. 'ity. he proponents proponents decided to choos choose e this this targe targett market market becau because se thes these e stud student ents s have have the acces accessib sibili ility ty and and convenience to the location of the business.
P(P)*"I(+ ( "#$% M"#&% "+- #%SP(+-%+S
(ne factor that is used in order to know the market feasibility of the proposed product is the population population of the target target market. Since the proponents proponents decided decided that the students in the universities located in downtown of 'ebu as its target market, the /012 /03 total enrollees of randomly picked universities which are )niversity of San 4ose2 #ecoletos, )niversity of San 'arlos and )niversity of 5isayas were obtained. he table below below shows shows the populati population on of the randoml randomly y picked picked universi universities ties and its respecti respective ve sample. Table 1 Population of Respondents per Universit N ! "#$ %1&
)niversity
Population 6+7
Sample 6n7
Percentage
)S42#
08,109
09:
3;
)S'2 Main
08,<:
009
=;
)5
:,=1
00<
=;
otal
9, :03
1=8
0//;
'onsidering the size of the population, the proponents had obtained a sample size of 1=8 using the Slovin ormula as illustrated below.
Where> n ? sample size +? total population e ? margin of error at :;
o apply this formula to the above data, the variables were substituted with, thus>
n?1=8 he respective sample size of each barangay is obtained by dividing each of the university@s population to the total population of the three universities. he Auotient is then multiplied to the total sample size of 1=8. ake for eBample as to )niversity of San 4ose2 #ecoletos. 03<=9 B 1=8 9:03 n? 09:
"$% ( C% #%SP(+-%+S his information is necessary in order to categorize those age brackets of the target market that would possibly accept the proposed product. Table # A'e of t(e respondents n!)*+ A'e Ran'e
,re-uen.
/
0:208
0=9
3=;
0=2
080
3:;
129
0:
3;
< and above
9
;
otal
1=8
0//;
he above table shows that most of the respondents are ages 0: to 08. his can easily be seen since it got the highest percentage which is 3=. he age bracket yields the highest percentage since it is believed that it is in this ages where a college student starts to try new things.
$ender of the #espondents o be able to acAuire knowledge on the ratio of the male over the female respondents on the pro!ect, a respondent was asked on hisDher gender.
Table ) Gender of t(e respondents n! )*+
Gender
,re-uen.
;
emale
:
91;
Male
039
1<;
Total
1=8
0//;
he above table shows that there is a more number of female respondents, representing 91; of the sample size compared to the male respondents which only represents 1<;.
#%SP(+-%+S WC( -#I+& SC"&% his is an important Auestion to be asked in order to reasonably estimate the total scope of those who consumes shake.
Table & Respondents 0(o drin s(ae n!)*+
Response hose who drink shake hose who do not drink
No2
/
shake Total
1=1 :
==; 0;
1=8
0//;
he above table shows that most of the respondents drink shake which is represented by ==; of the population.
C(W (%+ C% #%SP(+-%+S -#I+& SC"&% his is a follow2 up to the Auestion above. his information is significant as to how freAuent the respondents consume shake.
Table % Ho0 often t(e respondents drin s(ae
n!)*1
Response %veryday (nce a week (nce a month (ther otal
No2 03 0:: 031 <= 1=0
/ 1; 18; 1:; 0=; 0//;
he data above noticeably reveals that the ma!ority of the respondents consume on a weekly basis. It can be seen that the respondents drink shake depending on their own discretion due to personal reasons.
&I+- ( SC"&% C" #%SP(+-%+S C"5% #I%his will give hint to the proponents in knowing their eBisting competitor as to what kind of shake most people consume.
Table " Kinds of s(ae t(at respondents (ave tried n!)*+ Kind
ruit 5egetable (ther otal
No2
138 11 0 1=1
/
8=; 8; 1; 0//;
he above table shows that most respondents have tried fruit shake which is represented by 8=;. his data shows that most of the respondents think and feel that fruit shakes taste better than the rest choices above.
WC%#% C% #%SP(+-%+S M(S*E F)E SC"&% In determining the possible areas where the product will be distributed and made accessible to the buyers were asked. he table below presents the locations where the respondents prefer to buy the product.
Table 3 4(ere t(e respondents 5ostl bu s(aes n!)*+ 6o.ation Mall 'anteen 'arenderiaDsidewalk (ther otal
No2 9 80 <: 00 1=1
/ :8; 0; 0=; ; 0//;
he table presents the responses identifying the mall as the location where the respondents mostly buy the product. he mall ranked first among the others because it
is where most of the business enterprises are situated. "lso, there are many malls situated nearby schools of the respondents.
#%SP(+-%+S WC( "#% "W"#% C" $)M"M%*" IS %-IF*% he responses of the respondents as to their awareness of this fact are a useful data in determining whether this information is already a common fact or a !ustly discovered knowledge.
Table + Respondents 0(o are a0are t(at 'u5a5ela is edible n!)*+ Response Ees +o otal
No2 031 :: 1=8
/ 19; 93; 0//;
he table above reflects that most of the respondents do not know that gumamela flower is edible.
#%SP(+-%+S WC( "#% "W"#% C" $)M"M%*" *(W%# C"S F%+%IS his will give an indication to the proponents whether the benefits of a gumamela flower is a common fact or not.
Table * Respondents 0(o are a0are of t(e benefits of 'u5a5ela flo0er n!)*+ Response
No2
/
hose who are aware of the
03/
1:;
:8
9:;
1=8
0//;
benefits hose who are not aware of the benefits otal
he above data indicates that most of the respondents are not aware of the benefits of a gumamela flower due to fact that they also do not know that it is edible.
#%SP(+-%+S WC( C"5% #I%- %"I+$ " $)M%M%*" *(W%# his is a follow2up to the above Auestion that would help the proponents determine as to how the respondents would accept the product stating that gumamela flower is edible. Table 17 Respondents 0(o (ave tried eatin' a 'u5a5ela flo0er n!)*+ Response Ees +o otal
No2 18 19/ 1=8
/ 0/; =/; 0//;
Fased on the pro!ected data above, only few of the respondents have tried eating a gumamela flower for the reason that few of them know that gumamela can be eaten.
#%SP(+-%+S WC( "#% WI**I+$ ( F)E C% $)M"M%*" SC"&%
his will help the proponents to have an idea whether the respondents will patronize the product and can be saleable to the market once made available.
Table 11 Respondents 0(o are 0illin' to bu t(e 'u5a5ela s(ae n!)*+ Response Ees +o otal
No2 =0 0/< 1=8
/ <1; <; 0//;
Fased on the gathered data, most of the respondents are willing to buy the product if made available. his information indicates that the proposed product will reasonably have a share in the market because <1; are willing to buy it.
P#%%##%- P#I'%s (# :/M* In order to help the proponents determine the prices that the buyers are willing to buy for the proposed product, preferred prices were asked. he table below presents the favoured prices of the respondents based on the volume of the product which is in M*. Table 11 Preferred Pri.es for #%7 M6 n!)*% Response P : G 1/ P 10 G 1: otal
No2 198 < 1=:
/ =1; <; 0//;
P#%%##%- P#I'%S (# 1:/ M* Table 1# PRE,ERRE8 PRICES ,9R )%7 M6 n!)+3 Response P 19 G 3: P 39 G :: otal
No2 118 3= 18<
/ 8<; 01; 0//;
P#%%##%- P#I'% (# :// M* Table 1) Preferred pri.e for %77 M6 n!)+3 Response P :9 G 9/ P 90 2 9: otal
No2 1:/ 1< 18<
/ =/; 0/; 0//;
he data above noticeably reveals that most of the respondents are willing to buy the product at different volume. In table 0 , it shows that the respondents prefer to buy a :/ m* gumamela shake at a price ranging from P:2P1/ representing the =1; of the respondents. In table , it clearly presents that a 1:/ ml gumamela shake is preffered to buy at the prices ranging from P192P3: representing the 8<; of the respondents. In table 1, it can be seen that most of the respondents desire to buy a :// ml gumamela shake at price ranging from P192P3: representing the =/; respondents. "lthough largely of the respondents opt to buy a gumamela shake on a bracket price which is lower, the proponents believe that the proposed product can still be sold at a price higher from the chosen bracket because some of the target markets has chosen the bracket which has higher price. P#(4%'%- -%M"+-
his refers to the estimated Auantity of a product which potentially would be bought by the consumers at a certain time for a given price. Pro!ection of the demand is an important factor to determine the possible profit that the proposed business could obtain upon implementing this pro!ect. Pro!ected growth factor is computed through the use of the past five2year population of students enrolled in universities located at downtown 'ebu. " table below is being presented to easily show the average increase of the population per year. P#(4%'%- "++)"* -%M"+o determine the potential market of the gumamela shake for the years 2 032/0:, the study of demand pro!ections for a proposed business is essential. 6other paragraph based on the computed result7 6table7 M"#&% SC"#% Market share is said to be a key indicator of market competitivenessHthat is, how well a firm is doing against its competitors. It shows a part of the population that will avail the proposed product. It is also the percentage of the market@s total sales of a product during a specified time period. his measure can be use to in order to !udge the effectiveness of the marketing campaigns and also gives a general idea of the standing of the proposed product to its market and to its competitors. hus, conservative market share of the proposed pro!ect is presented in the table below. Table No2
Maret S(are
Pro!ected Production E%"#
-emand -esired Market Share $lass
;
$lass
'apacity
Market Share $lass
/03 /0: /09 /0< /08
able +o. shows that for the neBt five years the market shares percentage of the proposed product is . he formula to arrived at the prospective share percentage is>
Where> MS ? Market Share P' ? Production 'apacity P- ? Pro!ected -emand %Bample>
;
6indings7
%#MS ( P"EM%+ he determination of the terms of payment for the proposed business is necessary to plan the cash outflows and inflows. -etermining the eBpected outflows and inflows helps the management to effectively and efficiently use its cash resources. "ccordingly, the proposed product would be paid through cash bases. "s to the case of the production of gumamela shake, the moment the product is transferred to the customer, sales is already recognized.
M(-% ( -%*I5%#E " mode of delivery is defined as the way how the product is physically transferred from the seller to the buyer. he finished product is transferred to the customers by the time they purchase the gumamela shake. -IS#IF)I(+ 'C"++%* " channel of distribution or trade channel is defined as the path or route along which goods move from producers or manufacturers to ultimate consumers or industrial
users. In other words, it is a distribution network through which producer puts his products in the market and passes it to the actual user. It comprises all of the business and people involve in the physical movement and transfer of the ownership of goods and services from producer to consumers. he longer the distribution channel the less the profit a product manufacturer might get from the sale. "s in the case of the proposed business, the gumamela shake, from the stall or cart , will then be directly delivered to the customers upon ordering. he one who is in charge for the selling is responsible for the distribution of the products to the customers. Fased from the survey Auestionnaire answers, the respondents@ response as to where they mostly buy shakes is in the mall so the proponents decided to situate their product in malls. P#I'I+$ P(*I'E Pricing is a critical factor in the marketing aspect since it will determine the eBpected turnover that the proponents will generate from the distribution of the proposed product. Moreover, the loss or decline of sales can be directly attriibuted to pricing the product too high or too low. In order to prevent such from happening, a pricing policy is regulated. his policy will serve as guide in setting the right price of the proposed product. (ne of the considerations in pricing policy is the consumer@s willingness to pay. Fased on the results gathered from the instrument, ma!ority of the respondents are willing to pay Php :.// to Php 1/.//, Php 19.// to Php 3:.// , Php :9.// to Php 9/.// for a :/ ml, 1:/ ml, :// ml glass og the gumamela shake , respectively.
M"#&%I+$ S#"%$I%S he success of the business would have a greater chance by developing a market strategy. In developing a market strategy, the business should know on how to sell the gumamela shake to its target customer and how to rise above the crowd of competitors demanding for attention. o determine whether the proposed product will earn a reasonable profit, the business must go through an eBtensive planning that involves development and implementation of success strategies in order to meet the goals and ob!ectives of the business.
P#(M(I(+ "+- "-5%#ISI+$ Promotion is a business activity which communicates the product or service to the consumers. his provides information to the people that will attract their attention to buy the product or service in preference over others. (ne of the benefits of promotion advertising is that it gives the business an opportunity to communicate a message to a large audience at one time reducing the cost per contact. Cowever, advertising can also be performed at a smaller and more specialized scale to target a specific market. Successful promotion increases sales which will
spread over a larger output the
advertising and other costs. he proponents of the study decided to promote the product through activities which costs less. hey planned to have tarpaulins that will be placed near its production factory and to places which will be easily be seen by the public. " distribution 1// flyers
containing the benefits of the product will also be done. Sample products of :/ bottles will also be distributed to the malls in downtown area of 'ebu 'ity. *"F%*I+$ *abeling is an essential part when there is a new product that is being introduced. It is used to guarantee that costumers have access to complete information on the content and the composition of the product, in order to protect their health and their interests. "lso, in order for the costumers to know the information about the product, it is in the label where we put the product@s name. he proponents suggested that the product will carry a name of J$umamela ShakeK, which is an elaborate name that can simply be identified by the consumers that the product is made up of $umamela. P"'&"$I+$ "+- IS -%SI$+ Packaging is the technology of enclosing or protecting products for distribution, storage, sale, and use. Packaging improves handling and protection. When it comes to food packaging, convenience is one of the key factors. Packaging serves as a primary identification of the product against eBisting competitors. It also ultimately improves the product@s marketability. he eBternal packaging design of the proposed product is presented in the neBt figure.
,i'ure 1: Se.ondar pa.a'in' of Gu5a5ela S(ae
