MARKET ASPECT

Service Description

The SNACK PRO VENDING is a 24-hour convenience store that will have automatic

machines that would allow people to purchase items like snacks or drinks. These will be

machines that can take bills or coins as well as automated touchscreen loading stations for the

customer. The branch will be manned by a cashier whose main role is to provide change or help

with technical difficulties that the machines might encounter. Do-It-Yourself (DIY) foods like

hotdogs, donuts, coffee, soft ice cream, and coffee will be readily available in-store.

The main and primary purpose that will be offered by the establishment is a hassle-free,

serve yourself style of shopping. This would require minimal space for racks and fridge and

therefore give room for tables and chairs and a mini lounge for customers while they

comfortably engage in their personal or business activities.

Target Market

The business will be targeting all travelers and nearby residential areas in San Jose.

Overnight drivers and revellers are also being targeted for this project. To be specific, we have

the following target market:

Travelers going on their way to the airport may grab on-the-go snacks from the

establishment.

Passengers as well as their relatives and friends may also wait for loved ones in the

establishment with a bonus access to loading stations and internet.

Commuters Sitio Alimasag and beyond that are waiting for San Jose PUJs may use the

establishment as a virtual terminal as they wait for their ride.

1
 Public Utility Vehicle drivers and delivery/truck drivers may also get a fast snack from

the establishment without wasting too much time in falling in line.

Private cars owners from and to San Jose may pass by the establishment, as well.

Market Coverage

The SNACK PRO VENDINGs main bulk of the coverage will be mainly Tacloban City

and all the nearby town but go as far as Southern Leyte or Samar due to the origin of the

travelers and visitors it will cater.

2
 Table 1

Total Population in Tacloban City

2011 2015

YEAR POPULATION COUNT

2011 221,939

2012 222,707

2013 215,536

2014 216,282

2015 217,030

Growth Rate: 0.346%

Source: Philippine Statistics Authority (www.psa.gov.ph)

Based on the above data, it shows a 0.346% yearly growth rate for Tacloban City since

2011 until 2012 that totalled to 221,939 and 222,707 respectively. The same growth rate was

applied to 2013 but the number of casualties were deducted from the total population because of

the devastation brought by the Super Typhoon Yolanda. This left 2013 with a 215,536 population

count. For 2014, an increase in population is seen that totalled to 216,282 and an increase in

2015 that totalled to 217,030.

3
 Table 2

Projected Total Population in Tacloban City

2017 - 2021

YEAR POPULATION COUNT

2017 217,105

2018 219,291

2019 220,050

2020 220,811

2021 221,575

The table presents the projected population in Tacloban City for the next five years which

is from 2017 to 2021. We have determined that the growth rate will be 0.346% for each year until

2021 based on the data we have gathered from the Philippines Statistics Authority.

From the survey we have conducted through our respondents, it was determined that

travellers comprised 15.20% of the total population, 21% are revellers, 23% are drivers, and the

biggest are the students who take out 40.60% of the market share. It is also to be emphasized that

the automated mini mart is the first of its kind in Tacloban City and in the region.

4
Demand

Although SNACK PRO VENDING will be the first of its kind in Tacloban City, we

were able to gather historical data from related businesses within the city, most of which are

located in the heart of the citys bustling economy: The Downtown Area. Hence, the basis of the

computations for the projected demand of mini marts in Tacloban City will be based on the data

presented on Table 2. We are guided by the following assumptions:

1. It will be assumed that for the first two years, 2017 and 2018, 20% of the total

population of Tacloban City will the businesss target market. For the succeeding

years it will be increased as follows: 2019 will be increased to 25%, 2020 will be

increased to 30%, and 2021 will be increased to 35%.

2. The businessmen will be getting 32% of the total market share in Tacloban City

wherein 10% of which are students, 15% are travellers, 21% are revellers, 23% are

drivers, and the biggest are the residents of the nearby barangays who take out 31% of

the market share.

3. It is assumed that travellers and commuters will be entering the establishment as it is

close to one of the loading/unloading spots of PUJs, PUVs and buses in the city.
4. It is assumed that residents from nearby barangays would prefer to shop in the

automated mini mart because of the convenience it would offer.

5. It will be assumed that the five year period would cover 2017 up to 2021.

5
 Table 3

Consolidated Historical Demand

24-hour Mini Marts in Tacloban City

2011 2015

QUANTITY DEMANDED
GRAND
YEAR
CityStop New Karry Harapitan Buy D Way TOTAL

2011 32,120 54,750 - - 86,870

2012 32,120 54,750 - - 86,870

2013 27,456 46,800 - - 74,256

2014 11,264 41,400 7,360 - 60,024

2015 32,120 54,750 29,200 1,798 117,868

The data presented above are from the data gathered from the historical data of the

related businesses already established in Tacloban City. These data represent the approximate

number of actual customers they attend to annually. The data were acquired by interviewing

business owners. For the years 2011 to 2013, only CityStop and New Karry were the convenient

stores that offered 24 hour quick shopping for customers that gave both establishments 86,870

customers a year for both 2011 to 2012. 2013 was a little less with 74,256 customers due to the

forced close up of the businesses because of the Super Typhoon Yolanda. In 2014, the business

resumed for both CityStop and New Karry but was also the opening of Harapitan Convenience

store that gave them all a total of 60,024 customers. In 2015, Buy D Way also opened its doors

for the Taclobanons, giving the businesses 117,868 customers for the whole year. Metro Mart is

6
included in this table because it is the closest related businesses to the proponents automated

mini mart. (There are supposedly 6 respondents for this research but only 5 agreed to be

interviewed)

7
 Table 4

Consolidated Projected Demand

Snack Pro Vending

2017 2021

YEAR QUANTITY DEMANDED

2017 43,707
2018 43,858
2019 55,013
2020 66,243
2021 77,551

For this table, we have determined the projected demand for mini marts in Tacloban City.

The data here is based on the data gathered for Table 2 which is the projected total population in

Tacloban City by 2017 to 2021. We have taken out 20% of that total for 2017 and 2018 which

totalled to 43,707 and 43,858 respectively; 25% for 2019 which totalled to 55,013; 30% for 2020

which totalled to 66,243; and 35% for 2021 which totalled to 77,551.

8
 Table 5

Projected Demand based on Targeted Market Share

Snack Pro Vending

2017 2021

Barangay
Students Travelers Drivers Revellers GRAND
YEAR Residents
10% 15% 21% 23% TOTAL
31%
2017 4,371 6,556 9,178 10,053 13,549 43,707
2018 4,386 6,579 9,210 10,087 13,596 43,858
2019 5,501 8,252 11,553 12,653 17,054 55,013
2020 6,624 9,937 13,911 15,236 20,535 66,243
2021 7,755 11,633 16,286 17,836 24,041 77,551

In this table, it can be observed that for 2017, the total projected demand for students will

be at 4,371; travellers will be at 6,556; drivers at 9,178; revellers at 10,053; and barangay

residents at 13,549. For 2018, the total projected demand for students will be at 4,386; travellers

will be at 6,579; 7,755drivers at 9,210; revellers at 10,087; and barangay residents at 13,596. For

2019, the total projected demand for students will be at 5,501; travellers will be 8,252; drivers at

11,553; revellers at 12,653; and barangay residents at 17,054. For 2020, the total projected

demand for students will be at 6,624; travellers will be 9,937; drivers at 13,911; revellers at

15,236; and barangay residents at 20,535. For 2021, the total projected demand for students will

be at 7,755; travellers will be 11,633; drivers at 16,286; revellers at 17,836; and barangay

residents at 24,041.

9
Supply

Supply in this feasibility study will be referring to the number of expected customers the

respondents are expecting. As per the interview, employees are expected to be able to

accommodate at least 15 persons during their shift. We then multiplied it to the number of days

they are open in a year. The results are our historical data.

SNACK PRO VENDING will provide services in the means of an automated mini mart.

Since it is different from the traditional mini marts within the city, the proponents are confident

that they will be able to supply the large number or unserved demand within the city. Based on

the historical demand data that was gathered, the projected supply will be computed following

these assumptions:

1. Supply data will be projected from year 2017 to 2021;

2. It will be assumed that for the first year of the business on 2017, it will serve 55% of

the demand, 65% for 2018; 70% for 2019; 75% for 2020; and then 85% of the total

demand will we served by 2021.

10
 Table 6

Consolidated Historical Supply

24-hour Mini Marts in Tacloban City

2011 2015

QUANTITY SUPPLIED
GRAND
YEAR
CityStop New Karry Harapitan Buy D Way TOTAL

2011 32,850 38,325 - - 71,175

2012 32,850 38,325 - - 71,175

2013 27,720 32,340 - - 60,060

2014 11,520 28,980 5,520 - 46,020

2015 32,850 38,325 21,900 2,325 95,400

For the years 2011 to 2013, CityStop and New Karry were the only convenience

stores that offered 24-hour services where the expected customers to be supplied was 71,175.

2013 was lesser due to the temporary closure of the businesses because of the ST Yolanda. Both

CityStop and New Karry expected to supply goods for 60,060 customers. In 2014, the business

resumed for both CityStop and New Karry but was also the opening of Harapitan with an

expected number of customers at 46,020. In 2015, Buy D Way also opened its doors for the

Taclobanons, giving the businesses 95,400 expected customers to supply goods to for the year.

(There are supposedly 6 respondents for this research but only 5 agreed to be interviewed)

Table 7

Consolidated Projected Supply

11
 Snack Pro Vending

2017 2021

YEAR QUANTITY SUPPLIED

2017 24,039
2018 28,508
2019 38,509
2020 49,682
2021 65,918

The data for Table 9 is based from the total demand in Table 9. For 2017, 55% of the total

demand which we aim to supply will be at 24,039. For 2018, 65% will be supplied which will be

at 28,508. For 2019, 70% will be supplied which will be at 38,509. For 2020, 75% will be

supplied which will be at 49,682 and for 2021, 85% will be supplied which will be at 65,918.

12
 Table 8

Projected Supply based on Targeted Market Share

Snack Pro Vending

2017 2021

Barangay
Students Travellers Drivers Revellers GRAND
YEAR Residents
10% 15% 21% 23% TOTAL
31%
2017 2,404 3,606 5,048 5,529 7,452 24,039
2018 2,851 4,276 5,987 6,557 8,837 28,508
2019 3,851 5,776 8,087 8,857 11,938 38,509
2020 4,968 7,452 10,433 11,427 15,402 49,682
2021 6,592 9,888 13,843 15,161 20,434 65,918

In this table, it can be observed that for 2017, the total projected supply for students will

be at 2,404; travellers will be at 3,606; drivers at 5,048; revellers at 5,529; and barangay

residents at 7,452. For 2018, the students will be at 2,851; travellers will be at 4,276; drivers at

5,987; revellers at 6,557; and barangay residents at 8,837. For 2019, the students will be at 3,851;

travellers will be at 5,776; drivers at 8,087; revellers at 8,857; and barangay residents at 11,938.

For 2020, the students will be at 4,968; travellers will be at 7,452; drivers at 10,433; revellers at

11,427; and barangay residents at 15,402. For 2021, the students will be at 6,592; travellers will

be at 9,888; drivers at 13,843; revellers at 15,161; and barangay residents at 20,434.

13
Demand Supply Analysis

Since the business is quite unique and a definite go-to place for everyone, a likely chance

of the business to be patronized can be expected. Table 19 will show the comparison of the

Projected DemandProjected Supply for the period covering 20162020.

Table 9

Projected Demand and Supply Analysis

Snack Pro Vending

2017 2021

PROJECTED PROJECTED DEFICIT

YEAR D/S GAP
DEMAND SUPPLY (%)
2017 43,707 24,039 19,668 45%

2018 43,858 28,508 15,350 35%

2019 55,013 38,509 16,504 30%

2020 66,243 49,682 16,561 25%

2021 77,551 65,918 11,633 15%

TOTAL 286,372 206,658 79,714 28%

We can observe from Table 19 that the deficit of demand and supply is huge. This large

number of demand for mini marts can have a huge impact to SNACK PRO VENDING for it to

confidently pursue the business. This data shows a large number of the profitable market that the

business can accommodate that can give the customers a satisfactory unique shopping

experience.

14
 Table 10

Projected Service Volume and Market Share

Snack Pro Vending

2017 2021

PROJECTED MARKET SHARE

YEAR PROJECTED GAP
SERVICE VOLUME PERCENTAGE
2017 19,668 36,255 46%
2018 15,350 42,847 64%
2019 16,504 46,143 64%
2020 16,561 49,439 67%
2021 11,633 65,918 82%
AVERAGE TOTAL MARKET SHARE PERCENTAGE 64.6%

The uniqueness of the establishment and the way it works could likely attract the

customers. The strategic location of the business could also increase the customers patronization

of the establishment. Here, the gap is only due to the unserved portion of the projected demand.

15
Marketing Program

Pricing

What makes the business unique from all the other mini marts is its membership system.

Customers may subscribe to avail a reloadable prepaid card that they can use to avail SNACK

PRO VENDINGs services. This card is a reloadable card with magnetic stripe that will be

linked to the POS system equipped at the cashier counter and all vending machines. If a

customer is not up for a membership, they have the option to pay by cash by feeding bills or

coins to the vending machines or at the counter.

Table 11

Pricing

Snack Pro Vending

2017 2021

SERVICE/PRODUCT PRICE (Php)

CANNED BEVERAGE VENDING (CARBONATED DRINKS)
Assorted (355mL) 12.00
Cobra 11.00
Coke Mismo 11.00
Sprite 9.00
BOTTLE BEVERAGE VENDING (MINERAL WATER/ICED TEA/JUICE)
Aqua Sweet Mineral (500mL) 10.00
C2 (350mL) 17.00
C2 solo 10.00
Gatorade 12.00
Chips Vending (assorted brands)
Chippy 6.00
Marty's (Salt and Vinegar) 6.00
Marty's Original 6.00
Marty's Spicy 6.00
Nova 12.00
Oishi (28g) 6.00
Piattos 12.00
Pillows choco 8.00
Crispy Patata (25g) 6.00
Mang Juan Chicharon 7.00

16
GROCERY (FOOD AND DRUGS)
Argentina Beef Loaf (150g) 17.00
Argentina Corned Beef (100g) 20.00
Argentina Sausage (175g) 19.00
Bravo Biscuit 6.00
Century Tuna Flakes in Oil 28.00
Choco Mucho 7.00
Cloud9 7.00
Combi Choco 5.00
Cream-O Choco 8.00
Dingdong 1.00
Dingdong snack mix 1.00
Dynamite 1.00
Eden (175g) 42.00
Eden Cheese (35g) 11.00
Emperador Lights (1L) 110.00
Emperador Lights (750mL) 80.00
Energen Choco 6.00
Energen vanilla 30g 6.00
Fita (30g) 5.00
Flat Tops 1.50
Fortune Menthol 2.00
Fortune Red 2.00
Fres Mint 1.00
GSM Blue (700mL) 75.00
Halls 1.00
Hansel Choco 5.00
Happy 1.00
Lady's Choice Chicken Spread 8.00
Lady's Choice Ham Spread 8.00
Lady's Choice Sandwich Spread 8.00
Lady's Choice Tuna Spread 8.00
Loaded Chocolate 6.00
Loaded White 6.00
Lucky Me Cup Noodles Batchoy 16.00
Lucky Me Cup Noodles Bulalo 15.50
Lucky Me Cup Noodles Mini Beef 16.50
Lucky Me Cup Noodles Pinoy Chicken 16.50
Lucky Me Jjampong 21.00
LuckyMe Cup Noodles Sea Food 16.00
Malboro Red 3.00
Marlboro Black 4.00
Marlboro Green Lights Menthol Fliptop per
31.00
Pack

17
Marlboro Lights 3.00
Marlboro Lights Fliptop per Pack 30.00
Marlboro Red Fliptop per Pack 30.00
Marlbro Black Fliptop per Pack 31.00
Maxx 1.00
Mentos Center Fruit 1.00
Mentos Fruit Square 1.00
Mentos Mint 1.00
Mighty Menthol 1.00
Mighty Premium 1.00
Mini Mentos Rainbow 2.00
Nissin Cup Batchoy 16.00
Nissin Cup Beef 16.00
Nissin Cup Spicy Sea Food 16.00
Nissin Sea Food 16.00
Philipp Morris 3.00
Presto Choco 5.00
Purefoods Beef Loaf 32.00
Purefoods Chunkee Corned Beef (150g) 37.00
Purefoods Corned Beef (150g) 51.00
Purefoods Liver Spread 24.00
Purefoods Sisig (150g) 38.00
Quez-0 40.00
Rebisco Choco Sandwich 5.00
San Marino Corned Tuna (100g) 21.00
San Marino Tuna Spread 18.00
Sky Flakes 5.00
Stick-0 1.00
Swif Vienna Sausage (114g) 27.00
Swift Corned Beef (175g) 30.00
The Bar 85.00
Voice Choco 5.00
Yakult Probiotcs 9.00
GROCERY (KITCHEN WARES AND TOILETRIES)
Baby wipes 21.00
Band aid 2.00
Baygon (100mL) 38.00
Baygon Katol 4.00
Bueno Match 2.00
Charmee (non-wings) 4.00
Clear 6.00
Colgate Toothbrush 12.00
Colgate Toothpaste MCP (50mL) 39.00
Cotton Buds 5.00
Cream Silk 6.00

18
Efficascent Oil 30.00
EQ Diaper 9.00
Eskinol (75mL) 32.00
Gilette Razor 16.00
Green Cross Alcohol (60mL) 16.00
Gridps Hair Waxx 6.00
Happy Cotton (12g) 6.00
Head and Shoulder Menthol 6.00
Johnson baby lotion milk 37.00
Johnson Baby Oil 16.00
Johnson Baby Powder (25g) 12.00
Johnson Baby Regular Soap (100g) 26.00
Kiwi 9.00
Lewis and Pearl 16.00
Modess 5.00
Palmolive Pink Natural Soap (55g) 13.00
Palmolive Shampoo 5.00
Pampers 9.00
Ponds Antibacterial Scrub 6.00
Rejoice Conditioner 6.00
Rexona (3mL) 8.00
Safeguard White (60g) 16.00
Safeguard White (90g) 24.00
Silka Papaya 16.00
Sunsilk 6.00
Vicks Vapor (5g) 21.00
Whisper Regular 5.00
Young Styling Gel 3.00
GROCERY (NON VENDABLE BEVERAGES)
Redhorse 32.00
Redhorse 1L 65.00
San Miguel Light 26.00
Mountain Dew Lemon (1.5L) 45.00
Royal (1.5L) 45.00
Sprite(1.5L) 45.00
Zesto Apple 7.00
Zesto Orange 7.00
MICROWAVABLE READY-TO-EAT MEALS
Rice meals 30.00
SERVICES
Coffee Vendo 5.00
Internet 5.00
Cellphone Charging 5.00
Payphone 5.00
Regular 10 10.00

19
Regular 15 15.00
Regular 20 20.00
Regular 50 50.00
Regular 100 100.00
Regular 300 300.00
Regular 500 500.00
Slush Machine 20.00
Ice Cream Machine 10.00

These are the products and services offered by SNACK PRO VENDING for the

customers. The pricing method that we will be using is Competitive Pricing. Competitive

pricing is generally used when there's an established market price for a particular product or

service that suits our business venture very well. Vending machines for chips, candies, and

canned drinks with bills and coin feeds will be readily available for customers who are always

on-the-go and dont have the time to wait for the queue at the counter. These items will range

from P 25.00 to P 40.00 depending on the products. Another is a computer with internet access

which can be rented at P 10.00 an hour. ATM kiosks will also be installed there that can be access

24-hours a day. A phone charging station can be rented for P 5.00 for a 30-minute charge. Free

Wi-Fi may be accessed by the SVP members while non-member can access the protected

connection with just P 30.00 worth of purchase. A self-service loading station will also be

installed that can be accessed via coins or the SVP prepaid card. Other mini grocery items like

canned goods, instant noodles, toiletries, pet products and many others than cannot be put into a

vending machine will also be available and paid at the cashier by cash or SVP prepaid card.

Ready-to-eat meals like microwavable rice toppings, popcorn, hotdogs, sundaes, ice chillers and

many others will also be available. Free reheating will also be accessible and will be as self-

service. SNACK PRO VENDING will also have private labels like pens, raincoats, disposable

20
garments, umbrellas, and other novelty items. Lastly, the SVP Prepaid Card can be applied for

and reloaded at SNACK PRO VENDINGs counter with the assistance of our sales clerk.

21
 Table 12

Membership Fees

Snack Pro Vending

2017 2021

TYPE OF MEMBERSHIP AND

FEE
PAYMENT OPTION
Gold Membership P 3,000
Silver Membership P 1,000
Regular Membership P 500

As for the membership, interested applicants may avail of the cards just by purchasing a

card with their preferred value that will be loaded as point and can be used as cash. Once all

points are consumed, subscribers may just reload it at the loading stations.

22
 Table 13

Annual Service Capacity

Snack Pro Vending

2017 2021

SERVICE
CAPACITY
YEAR CAPACITY AT SERVICE VOLUME
UTILIZATION
100%
2017 65,918 55% 36,255
2018 65,918 65% 42,847
2019 65,918 70% 46,143
2020 65,918 75% 49,439
2021 65,918 100% 65,918

The table above shows the capacity utilization of the business for its first five years. We

will be starting at 55% for 2017 since the location is known for its busy environment as well as it

nearness to residential areas which makes up 25% of the citys population. For 2017, the number

of customers the business expects to accommodate is at 55% which will be at 36,255. For 2018,

the capacity utilization will be 65% which will be at 42,847. For 2019, it will be 70% at 46,143.

For 2020, the capacity utilization will be 75% at 49,439 and at 2021, the capacity utilization will

be 100% with a service volume of 65,918.

23
Promotions

The heart of your business success lies in its marketing. Most aspects of the business will

depend on a successful marketing which makes it the overall marketing umbrella that covers

advertising, public relations, promotions and sales. Since it is an important part of the business

branding, we will be applying the following marketing programs:

Advertising
1. Social Media. These platforms have become marketing giants, offering businesses

valuable data about their customers and a free way to reach them. This will definitely

increase brand awareness and loyalty as well as make it easier for the customers to

find and connect with the proponents. By this, it is more likely to increase customer

retention and brand loyalty.

2. Website. In this modern era, people and companies are on the internet for

information. A website will most likely help the prospect customers provide

information about the products and services. They may also be able to check the

balance of their prepaid cards here.

3. Tarpaulin/Streamers. Since tarpaulins are made of polyester or plastic, they weather

incredibly well. Billboards and posters on public roads are also eye catching

especially if the quality of the promotional content is exceptional and will make it

more effective.
4. Flyers. It will be another way of making consumers aware of the new products and

services of the business.

24
 Amenities
1. Food Combo. There will be food combos available with discounted prices. These

will be food sets that include drinks, ready-to-eat meals, and desserts.
2. Giveaways. This will be mini contests that will be conducted every month and will

require the customers receipts to join. All will be via raffle and prizes will vary from

novelty items to home showcases.

3. Free Wi-Fi. It may be accessed by the SVP members while non-member can access

the protected connection with just P 30.00 worth of purchase.

25
Service Distribution

SNACK PRO VENDING has a very simple service distribution. It will be a business-to-

consumer type of distribution, all of which will pass the machines installed within the

establishment. As for the membership cards, all are readily available within the establishment

with the assistance of the sales clerk.

Snack Pro Vending Automated

Costumers
Products/Services Machines/Vendos

26
Brand Name

SNACK PRO VENDING will be the brand name of the business. Snack Pro which is

mostly what is readily available to the consumers. We did not call it a mini mart as to make a

distinction from other usual convenience stores. We believe the Vending in the brand name

will tickle the customers curiosity. At the same time, as what makes the business from other

convenience stores is its automation, the name just fits it right.

27