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Introduction
Market study should be conducted first because it will determine the success of a
business. It is where you can substantiate through research that adequate demand for your service
exist, or if you can attain sufficient quantity to meet expected demand that will determine if your
service is feasible or if continuing to the next step into the feasibility would still be practical.
Customers willingness to go bar and avail of the services is the cornerstone for the
survival of the business. Giving thorough notice to the market study, this will be achieved. The
study head into the demand, appropriate marketing program, the supply and demand condition,
I. SERVICE DESCRIPTION
To be patronized, the business should be named in such a way that people can easily
remember it. And a business name is a big factor in the success of every business nowadays. It
has a big impact on the market and helps business to attract customers.
Le Circuit mobile bar shall engage in both food and drinks and also KTV services. It is
primarily focused in providing easy and comfortable way for those who want to party and want
A lot of party goers do not only stay in one bar at one night, they prefer to do what they
call bar hopping wherein they go to another bar after the other for their satisfaction. Le Circuit
Mobile Bar promotes tourism in the city that is why we thought of a service where tourists spots
in Baguio City are considered in the itinerary of our bus at the same time they are enjoying their
selves having party all night inside the bus and at the same time they can enjoy our KTV services
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with their friends. And with those places included in the itinerary they will have a bar hopping
experience by staying only in one bar wherein the customers are given the chance to save their
Our business name is Le Circuit Mobile Bar. Le means the and Circuit means a
periodical journey around an area. The name of our business will already give you the idea of
what kind of services are we offering once you read this. We considered these words in order for
our business name to be unique and catchy to the people. We chose this kind of business not only
to gain profit but to give a comfortable ride to those who want to enjoy disco bar inside a bus. Le
Circuit itinerary includes Session Road, Harrison Road, Baguio Botanical Garden, Burnham
Park, Camp John Hay, Mines View Park, Philippine Military Academy, The Mansion, and Wright
Park.
Business Logo
Pink represents that the researchers who are conducting this study are all females
We designed our logo in a round shape because it shows that our mobile bar goes around
the city by having its own route, a wine glass in the center which shows that we offer the best
mixed drinks and shadows of girls dancing shows the fun that you will feel when you are inside
B. Services offered
Le Circuit includes amenities that are guaranteed to give you and your friends a grandiose
experience, fit for your exuberant and lavish lifestyles. Le Circuit is equipped with a videoke
equipment system that contains a wide variety of songs from local and foreign artists. To top it
all off, Le Circuit boasts of a top-of-the-line sound system, with matching dazzling lighting
effects, that is sure to make you groove to the music. Our music library features thousands of
songs. We allotted a space as a dance floor where people can dance inside the bus like when you
are inside the disco bar and we also provide a DJ which will make the dance floor awesome. You
It also has a variety of connectors and chargers for almost all units of mobile phones. For
sustenance, Le Circuit is outfitted with a mini-fridge that will chill your favorite beverages like
cocktails, beer, and brandy. We also serve food which is pica-pica. Lastly, a chauffeur is provided
who will be at your disposal to make sure you get to your destination safe and on time.
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C. Properties of the service
Le Circuit Mobile Bar will cater to patrons who seek for leisure and entertainment. The
business will provide high quality services to their customers and sees to it that every customers
and sees to it that every customers needs and wants are satisfied. We serve food which are finger
foods (pica pica); liquors like cocktails, beers and brandy; and KTV which are guaranteed to
satisfy our valued customers who are 20 years old and above.
D. Hours of Operation
Le Circuit Mobile Bar will operate for 8 hours which will start at 6:00 in the evening
until 2:00 in the morning. We will open at exactly 6:00 pm because we considered those
customers who prefer to go to disco bars this early in the evening for the purpose to chill out and
not staying very late in a bar. And this will also give chance for the customers to still see the
tourists spots in Baguio City while the night is still young. The bar will close at 2:00 in the
morning because most of the party goers go home at this time. The hours of our operation
considered hours where people wanted to go to the bar and the time they leave the bar.
E. Areas Served
Baguio is one of the major tourist attractions in the country and is also considered as the
center of education in Northern Luzon; many people are visiting and enrolling here in Baguio
City. Since our target customers will be students and young professionals, tourists, Baguio City is
the perfect place to put up a Mobile Bar. The mobile bar will serve the people in the city of
Baguio who are 20 years old and above. The mobile bar will not cater for 19 years and below
20 years old and above who wants to have families and friends get together.
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Professionals, students, and the tourists (both local and international are the major users
proposed itinerary but will then be provided to other areas if favorable profits which are enough
for its expansion and additional operations arise in the next years to come. Though, the office is
situated in a home-based location, with the aid of internet, connecting to and reaching people in
distant areas is never impossible that could help to attract more customers to the center.
II. DEMAND ANALYSIS
In any business, one fundamental aspect to be considered is the demand. The concept of
demand is parallel to the profitability of a business enterprise, which refers to the level of desire
or need that exists for particular goods or services. Moreover, a high demand is indicative of a
chance of obtaining a sustainable share of the market in which a business enterprise is planning
to thrive in.
A total of 400 respondents of different legal age brackets in Baguio City were subjected
into this survey. a total of 262 males or 65.5% and 138 females or 34.5% participated in the
survey. Data were gathered through a questionnaire administered to respondents containing five
items aimed at assessing their practices and lifestyle related to disco bar and the like. Results and
summary of the responses of the respondents were presented in the tables below.
Table 1.1
In order to determine the sample size needed for this study, the researchers adapted
Slovins Formula. The above values were derived through obtaining the average population of
our target market which are 20 years old to 49 years old (female and male) in Baguio City.
n = 1 + Ne2
Where:
n = sample size
197406
n
1+ [(197406)0.052]
n = 399.19 or 400
Table 1.2
Distribution of Respondents as to Party Goer or Non-Party Goer Across Gender
Sex Party Goer Non-Party Goer Total
Frequency Percentage Frequency Percentage
Male 255 66.58 7 41.18 262
Female 128 33.42 10 58.82 138
Total 383 100 17 100 400
The table above shows the distribution of the respondents who goes to disco bar,
described as party-goer, and those who never experienced going to a disco bar, described as non-
party goer. It is reflected on the table that 95.75% or equivalent to 383 respondents are disco
goers, of which majority or 255, equivalent to 66.58%, are males and only 128 or 33.42% are
females. This result clearly shows that large portions of the sample population who are
considered disco-goers are men. This means that going to a disco bar is most preferred by men,
than women do. This supports the fact that men are more adventurous in nature and that they are
On the other hand, only 17 of the respondents are considered non-party goers. Of this
Table 1.3
The respondents who are considered party goers were instructed to continue answering
the items on the questionnaire. Those non-party goers jumped to question 5 of the questionnaire.
The disco goers respondents were asked of the services, in terms of liquor, foods and KTV, they
frequently avail of when inside the disco bar. Their responses were presented in Table 2.
As to drinks, most of the respondents are cocktail lovers with 205 or 53.52% of them
availing the said product. Brandy was the least availed-drinks comprising only 5.23% of the
respondents. The respondents disclosed during the data-gathering that they prefer taking-in light
drinks so they could stay longer in the disco bar bringing them more time to enjoy the party-like
atmosphere.
The respondents, moreover, choose to buy nachos over fries and onion rings. A total of
178 or 46.48% of the respondnets said that they enjoy more eating nachos than fries or onion
rings as it compliments and blends well with the taste of their cocktail drinks.
In addition, almost all the respondents avail also of the KTV services of the disco bar as
this adds up to their enjoyment and makes their stay more fun and thrilling.
Table 1.4
Frequency of Respondents Availment of the DISCO Bar Services
The respondents were also asked of the the number of times in a week that they avail of
the services offered in a disco bar. When it comes to liquor, most of the respondents take it in
moderation as reflected by the 137 and 107 respondents who take it twice and once in a week,
respectively. Only 30 of the 383 respondents take-in daily any liquor sold in a disco bar.
As to food consumption, the respondents vary in their responses from daily, to every
other day, to once or twicein a week. However most of them consume any of the three foods
offered in the disco bar once a week. Only 31 of the respondents buy foods in a disco bar in a
monthly basis.
In terms of KTV services, most of the respondents prefer availing it every other day or
Table 1.5
Respondents Average Weekly expenditure on Liquor
Since the respondents take-in liquor weekly in moderate manner, their weekly
expenditures on said disco bar product ranges for as low as P50.00 and as high as P200.00 only.
Most of the respondents spend P50.00 P99.00 on beer, accumulating a total of 150 respondents
out of 158 who take-in such liquor. On the other hand, almost all cocktail drinkers respondents
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spend P100.00 P149.00 weekly, while all brandy lovers cost them P200.00 in a week to enjoy
Table 1.6
Respondents Average Weekly Expenditure on Food
Nachos 94 86 7 178
Onion Rings 97 11 108
The table above reflects that most of the respondents spend an average of P50.00 to
P99.00 pesos weekly to enjoy the tastes of fries, nachos and onion rings in a disco bar. The data
implies that the disco goers practice giving contributions in buying such foods as they may share
in each serving of the abovementioned food products, which they can rarely do in availing liquor.
A total of 108 respondents, meanwhile, where 11 are fries lovers, 86 for nachos and
another 11 for onion rings, spend an average of P100.00 P149.00 pesos in a week in those
foods. The remaining seven respondents allot a weekly budget of P150.00 P200.00 for onion
rings.
Table 1.7
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Respondents Average Weekly Expenditure on KTV
On KTV services, the respondents only spent weekly an average range of P5.00 to P15.00.
almost all the respondents pay P5.00 weekly to sing their favorite song in a disco bar. Since each
song costs P5.00, this reflects that most of the KTV lovers go to a disco bar only once a week.
This may even imply that those disco goers who visit twice or even more frequent in a week only
get to sing one song. This results may have been affected by the fact that most disco bars only
have one KTV which means that disco goers get the chance to sing one after the other.
Table 1.8
Possible Public Patronage on Mobile Disco Bar with KTV
The respondents were asked whether or not they will patronize a Mobile Disco bar with
KTV whenever it will be introduced in Baguio City. The proposed business concept received
almost 100% of the respondents patronage. 376 out of 400 or equivalent to 96% responded
positively that they will avail of the services of such business. Respondents revealed that the
concept is absolutely new in Baguio City. The Mobile Disco Bar with KTV according to
respondents does not require them to go where the disco bars are. As the name implies, the
Mobile disco bar with KTV will be the one which will go to the place of disco goers. This Disco
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Bar maybe also be rented by a group in a very reasonable price so as to provide them utmost
privacy.
C. PROJECTED YEARLY DEMAND
Analyzing Demand is very important in order for us to identify the needs of our
prospective customers and their willingness and their capability in availing the services that we
are going to offer. Therefore, demand analysis will help us to foresee if our business will succeed
in the future.
Table 1.10 presents the summary of the computed deviation for each statistical method,
followed by Table 1.10 for the solution of the proper method of projection for the study.
Table 1.9
Historical Demand
Populatio
= 376
400
Table 1.9a
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Summary of Mathematical Method
Based on the Standard deviations derived Statistical Straight Line has the lowest value
therefore we will use statistical straight line in projecting the demand for the next five (5) years.
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Table 1.10
Method of Projection Used
HISTORICAL VALUES
YEA
POP'N X X2 XY a b Yc Y-Yc (Y-Yc)2
R
122810. 136,622.6
2009 136,990
1 1 136,990 12 13812.52 5 367.31 134,918.35
122810. 150,435.1 - 102,708,715.3
2010 140,301
2 4 280,601 12 13812.52 7 10,134.53 7
122810. 164,247.6 165,270,096.0
2011 177,103
3 9 531,310 12 13812.52 9 12,855.74 4
122810. 178,060.2
2012 181,283
4 16 725,132 12 13812.52 2 3,222.86 10,386,824.37
122810. 191,872.7
2013 185,561
5 25 927,807 12 13812.52 4 -6,311.38 39,833,554.23
TOT 1 2,601,84 318,334,108.3
AL 821,238 5 55 1 7
7,979
a 122810.1245
b 13812.52318
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Table 1.11
Projected Demand
PROJECTED VALUES
YEA
a b x Yc
R
201
Table 1.11 shows the demand for the year 2013 up to 2018. We got the figures written
above using the arithmetic straight line. Projected demand is important because it will help us to
know the demand for this kind of business for the years to come.
Supply is defined as a basic economic concept that describes the total amount of a certain
good or service that is available to customers. Supply represents how much the market can offer.
The quantity supplied refers to the amount of a certain good producers are willing to supply at a
certain price. The relationship between the price and the quantity of a good which is being
direct competitors existing as of the present based from the list of the existing business in Baguio
City provided by the Department of Trade and Industry (DTI). Since there are no direct
competitors, there is no existing supply in the market. Since there are no direct competitors, Le
Circuit Mobile Bar is expected to satisfy as much as 100% of the demand. However, there are
certain limitations regarding the supply of the service, thus Le Circuit Mobile Bar will try to
Demand and Supply Analysis is important for an enterprise to determine the existing
gap between demand and supply. Demand and Supply Analysis will help us know if there is a
surplus or shortage in the market for our business which is a mobile bar. It would also help us to
determine if the business that we are planning to enter would be profitable or not to know if there
is still a need for an additional supplier for this kind of business or if there is too much already.
The absence of existing supply in the market for the service that will be offered by the
business indicates that Le Circuit Mobile Bar should satisfy the 100% demand of the business
wishes to do it so. However, because of the limited capacity of the business and taking into
account the estimated capacity that the business can operate with, the business may satisfy 17%
Table 1.17
Projected Demand - Supply and Unsatisfied Demand
V. PRICE STUDY
In economic theory, price is determined by the demand and supply situation which
indicates that if the demand increases, prices will increase and the reverse will result in a lower
prices. However, there are other factors that will affect the pricing of products and services like
the presence of direct and indirect competitors highly influences the pricing of products and costs
incurred in rendering our services and other necessary expenses also affect the pricing of the
services.
Le circuit mobile bars KTV, food and beverages are priced based on the cost of
production and the added percentage of mark up of each foods and drinks offered. The
percentage of mark up will cover the other incurred costs (cost of labor, cost of operations,
maintenance costs and other incidental related costs). Although we aim to have a fair rate of
return, we have to price our products in a reasonable rate that will be acceptable and marketable
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to our customers. This is suitable to the tight competition, and in consideration of the most
The demand, supply and prices of the services can be affected by different factors influencing the
market.
Population Growth
Philippines is one of the countries with increasing population then if the population increases, the
demand also increases. This would mean more demand for this kind of business. Le Circuit
Mobile Bar will satisfy the demand of people ages 20 years old and above for this kind of
entertainment. The bigger population to satisfy would mean greater chance for our business to
Income
Income is one factor that dictates the consuming habits of an individual. The greater the income
of the people has the greater capacity on availing the services that we are going to offer and the
lower their income would mean that their capacity on availing the services that we are going to
Income of different people varies and we can only cater to those who have higher income and so
our market is limited to people who can afford to spend their money unwinding in bars.
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Taste and Preference
The taste and preference refers to an individuals interest towards product and services and these
interests may vary over time. That is why most of the consumers are attracted to new ideas and
innovations, new products. Thus, results to an increase in demand for new products and services.
Taxes
imposed on the business is an indirect tax since it is levied in the price of our service.
Inflation
Inflation is an economic situation where there is a sustained and general increase in prices
of all or nearly all of the markets in an economy causing, a decrease in the purchasing power of
the Philippine peso. As a result, prices of the services offered will increase because of the
Competition
Establishing a new business is not easy because other firms own the loyalty of customers.
It is a thorny step of penetrating the market because the customers have present qualification of
the related services. Efforts are needed to convince them to shift their loyalty to the business or
Because of the growing competition in the market, adapting effective marketing program is
highly recommended in order for the business to be known and patronized by customers. One of
the most popular marketing strategies by the business enterprises in promoting their services is
through advertisement.
Print Advertisement
We will be having an advertisement in Baguio Midland Courier with its name, address
and the telephone number of our business establishment. It will be published twice a month for
two issues of the said newspaper. The estimated cost to be incurred is 3,500 pesos.
We will also be distributing flyers within the City of Baguio to create awareness among
the people and this will encourage them to visit the bar. The estimated cost to be incurred is 4800
pesos.
Social Media
Most of the business establishments use social media for the promotion of their business
because it is very popular to everyone and there will no cost to be incurred. We will be making
our own website wherein the people will see the services we offer, our menu, operations,
promos, and other details of our business. Social media will also be a way to have contact