Chapter III

MARKET STUDY

A. DEMAND
The project “Study Café” aims to give people from all

ages mainly for students who love to study out, professionals doing

reports out-of-office and entrepreneurs needing place for business

meetings. They are the target market of this project with the primary

reason that they are the ones who are struggling in looking for a

place that can serve all these purposes.

With this project, the need of the target market with this kind of

place will be highly satisfied. The project will also offer light snacks

like sandwiches of few flavors, spaghetti and drinks such as water,

coffee and softdrinks to accompany the target market

Population (Past Five Years) - Selected Colleges in Pagadian City

NUMBER OF STUDENTS ENROLLED PER ACADEMIC YEAR
SCHOOL 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
SCC 3,900 4,418 3,597 3,300 3,804
SMC 4,487 4,487 4,878 4,864 4,679
PCC 908 908 940 630 847
Total 9,295 9,813 9,415 8,794 9,330
 The data above is based from the number of students enrolled

per Academic Year per School in Pagadian City posted on the

Commission on Higher Education’s website.

Population (Past Five Years) - Selected Barangays in Pagadian City

NUMBER OF EMPLOYED INDIVIDUALS PER BARANGAY
BARANGAY 2014 2015 2016 2017 2018
Gatas 1,347 1,360 1,373 1,387 1,401
San Francisco 1,770 1,965 1,984 2,004 2,024
Sta Lucia 4,668 5,181 5,233 5,284 5,337
Santiago 1,797 1,994 2,014 2,034 2,054
Total 9,582 10,500 10,604 10,709 10,815

The data above is computed based from the Philippine

Barangay Population, Population Growth Rate and Employment Rate

posted on the Philippine Statistics Authority’s website. See Appendix

for the complete computation.

Population for Next Five Years- Selected Colleges in Pagadian City

PROJECTED NUMBER OF STUDENTS ENROLLED PER ACADEMIC YEAR
SCHOOL 2019-2020 2020-2021 2021-2022 2022-2023 2023-2025
SCC 3,820 3,837 3,853 3,870 3,886
SMC 4,733 4,788 4,844 4,900 4,957
PCC 857 867 878 889 900
Total 9,410 9,492 9,575 9,658 9,743
 The table above shows the projected number of enrollees of the

three schools (Saint Columban College, Southern Mindanao

Colleges, Pagadian Capitol College) for the next five years computed

using the average growth rate for the last five years.

Population (Next Five Years) - Selected Barangays in Pagadian City

PROJECTED NUMBER OF EMPLOYED INDIVIDUALS PER BARANGAY

BARANGAY 2019 2020 2021 2022 2023
Gatas 1,415 1,429 1,443 1,457 1,472
San Francisco 2,044 2,064 2,084 2,105 2,126
Sta Lucia 5,390 5,443 5,497 5,551 5,606
Santiago 2,074 2,095 2,116 2,137 2,158
Total 10,922 11,030 11,140 11,250 11,361

The table above shows the projected number of employed

individuals for the four barangays (Gatas, San Francsisco, Sta Lucia,

Santiago) next five years computed using the population growth

rate(based on 2015 Census) for the last five years.

PROJECTED DEMAND

Willing to patronize Study Café

2019 2020 2021 2022 2023
STUDENTS
8,846 8,923 9,000 9,079 9,158
(94.0%)
EMPLOYED 9,612 9,707 9,803 9,900 9,998
 (88.0%)
TOTAL 18,458 18,630 18,803 18,979 19,156

Based on the survey conducted on selected colleges and

barangays in Pagadian City, the percentage in favor of the proposed

project (Study Café) is 94% and 88%, respectively.

The above table shows the projected future demand for the

next five years. It shows the response of the people especially our

target market which is the students and employees and their interest

on our proposed project. This table gives us the clue that for the next

five years we will have a customer of our project.

B. SUPPLY

PROJECTED SUPPLY FOR NEXT FIVE YEARS

STUDENTS PROJECTED SUPPLY FOR THE NEXT FIVE YEARS

PROJECTED SUPPLY - STUDENTS

Suppliers Percentage 2019 2020 2021 2022 2023

Mister Donut 14.93% 1,320 1,332 1,343 1,355 1,367
Dunkin Donut 11.94% 1,056 1,065 1,075 1,084 1,094
Infinitea 25.37% 2,244 2,264 2,284 2,304 2,324
Brew n' Bake 13.43% 1,188 1,199 1,209 1,220 1,230
Sprinkles 7.46% 660 666 672 678 683
Total 6,468 6,526 6,583 6,641 6,698
 The table above shows the projected supply of the three

schools (Saint Columban College, Southern Mindanao Colleges,

Pagadian Capitol College) for the next five years based on the survey

conducted. (See Appendix for the complete computation)

EMPLOYEES PROJECTED SUPPLY FOR THE NEXT FIVE YEARS

PROJECTED SUPPLY - EMPLOYEES

Suppliers Percentage 2019 2020 2021 2022 2023

Mister Donut 14.93% 1,435 1,449 1,463 1,478 1,492
Dunkin Donut 11.94% 1,148 1,159 1,170 1,182 1,194
Infinitea 25.37% 2,439 2,463 2,487 2,512 2,537
Brew n' Bake 13.43% 1,291 1,304 1,317 1,330 1,343
Sprinkles 7.46% 717 724 732 739 746
Total 7,030 7,099 7,169 7,241 7,312

The table above shows the projected supply for the employed

individuals under the four barangays (Gatas, San Francsisco, Sta

Lucia, Santiago) next five years based on the survey conducted. (See

Appendix for the complete computation)

C. DEMAND AND SUPPLY ANALYSIS

 COMPUTATION OF GAP BETWEEN DEMAND AND SUPPLY
Year 2019 2020 2021 2022 2023
Students Total Demand 8,846 8,923 9,000 9,079 9,158
Employees Total Demand 9,612 9,707 9,803 9,900 9,998
Total Demand 18,458 18,630 18,803 18,979 19,156
Total Supply Students 6,468 6,526 6,583 6,641 6,698
Total Supply Employees 7,030 7,099 7,169 7,241 7,312
Total Supply 13,498 13,625 13,752 13,882 14,010
Gap 4,960 5,005 5,051 5,097 5,146

The demand and supply analysis provides us the clue on the

supply that we are going to produce to meet the expected demand.

The gap shows the relationship between the two in determining our

products supply based on the estimated demand.

D. MARKET SHARE

Year 2019 2020 2021 2022 2023

Gap 4,960 5,005 5,051 5,097 5,146
Willing to Patronize - Percentage 91% 91% 91% 91% 91%
Willing to Patronize 4,514 4,555 4,596 4,638 4,683
Production Rate 20% 20% 20% 20% 20%
Market Share 903 911 919 928 937

Based on the calculation on GAP, the researcher assumes to

produce 20% 0f GAP in the first year in consideration of the place

where the proposed project will be located.

 Average Average Annual Market Share
Visit per month Respondents Percentage Visit per Visit per 2019 2020 2021 2022 2023
month year 903 911 919 928 937
1-2 times 101 75.37% 1 12 8,165 8,239 8,315 8,390 8,471
3-4 times 23 17.16% 3 36 5,578 5,629 5,680 5,732 5,787
5-6 times 10 7.46% 5 60 4,042 4,079 4,116 4,154 4,194
7 times or more 0 0.00% 7 84 0 0 0 0 0
134 100.00% 17,785 17,946 18,111 18,276 18,452

The table above shows the total annual market share for the

next five years computed based on the average visit per year.

PROJECTED REVENUE

Projected Revenue Annually

Number of Average
Price Range Percentage
Respondents Price
Php75.00-Php125.00 84 62.69% 100.00
Php126.00-Php175.00 34 25.37% 150.50
Php176.00-Php225.00 9 6.72% 200.50
Php226.00 and above 7 5.22% 226.00
134 100.00%

Average Projected Revenue - Annual

Price 2019 2020 2021 2022 2023
100.00 1,114,876.29 1,124,991.10 1,135,330.68 1,145,670.26 1,156,684.15
150.50
679,145.48 685,307.08 691,605.60 697,904.13 704,613.43
200.50
239,499.32 241,672.19 243,893.36 246,114.52 248,480.54
226.00
209,968.37 211,873.32 213,820.61 215,767.90 217,842.18
Total 2,243,489.45 2,263,843.69 2,284,650.25 2,305,456.80 2,327,620.31
 The table shows the projected revenue for the next five years.

This is based on the computation of the gap. Through the gap we can

determine our market share and projected revenue for the first year of

operation up to the five years of operation.

MARKETING STRATEGIES AND PROGRAMS

Product and Price

The proposed project will offer light snacks and drinks to its

customers to accompany them in their purpose of visiting the café.

Prices will range from Php30.00 to Php100.00.

Location

The proposed project will operate at a commercial building in a

commercial building located Rizal Avenue, Brgy San Francisco,

Pagadian City. The commercial building is situated in front of Gaisano

Capital which is at the center portion of the city.

Promotion
 The project will be promoted through social media applications

such as facebook, twitter and instagram.