A.

DEMAND ANALYSIS

Based on the result of the interview with event organizers, they have 46.67
percentage of willingness that they would recommend the business and thus represents
the proponents’ target market.

Also, the average number of persons per household in Tarlac City is 4.51, the proponents
assumed that this will represent the number of times a household will celebrate an event
in a year. But the proponents ponder that this would somehow be impractical for a
household celebrating in events place 4.51 times a year even though they earn over the
250,000-income threshold and other factor like, due to different taste preference in
celebrating an event of one of the family members. For conservatism purposes, the
proponents decided to decrease it to 2.5 for the demand projection to make it more
realistic.

The proponents used the chain method of estimating and forecasting the demand for an
Events Place in Tarlac City.

Here is a schedule of the projection of demand for the year 2020:

DEMAND ANALYSIS

TOTAL NUMBER OF HOUSEHOLDS IN TARLAC 100,764.22

X PERCENTAGE OF PEOPLE WHO HAS
OCCUPATION (Source: PSA, Annual Labor and Employment Estimates
for 2018) 0.14

EMPLOYED TARLAQUENOS 13,898.51

x PERCENTAGE OF WILLINGNESS OF EVENTS
ORGANIZERS 46.67%

TARGET MARKET 6,486.44

x PERCENTAGE OF FAMILIES WHO EARNS 250K-
OVER 0.43
NUMBER OF HOUSEHOLDS WHO WILL
CELEBRATE EVENTS 2,815.01
AVERAGE NUMBER OF PERSONS IN A
HOUSEHOLD 2.5
TOTAL DEMAND FOR EVENTS PLACE IN
TARLAC CITY 7,037.54
The expect growth rate for the demand for events place will be 3.8%; this rate is based on
the forecast of AMEX on their 2018 Global Meeting and Events Forecast. Thus, the
projected demand for events place is illustrated below:

DEMAND FOR EVENTS PROJECTION

9,000.00 8,480.23
8,169.78
7,870.69
8,000.00 7,582.56
7,304.97
7,037.54
7,000.00
6,000.00
5,000.00
4,000.00
3,000.00
2,000.00
1,000.00
-
2020 2021 2022 2023 2024 2025
B. SUPPLY ANALYSIS

In analyzing the supply for events place in Tarlac City, the proponents have used the data
they have obtained from some of their competitor in Tarlac City; Bella Plaza, Luisita
Central Park, L-Square Hotel. Since the data gathered are from 2016 and 2017 only, the
proponents estimated their sales based on the 3.8% forecast of AMEX.

Competitors 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Bella Plaza 1.260 2.870 2.979 3.093 3.210 3.332 3.459 3.590 3.727 3.868

Luisita 2.356 2.530 2.626 2.726 2.829 2.937 3.048 3.164 3.285 3.409
Central
Park

L-Sqare 2.298 2.367 2.457 2.550 2.647 2.748 2.852 2.960 3.073 3.190
Hotel

*Figures in millions

Although data above are in peso, and the business is selling different kind of venues, they
will assume that they only sell a venue that the average price is P15,000 that can
accommodate 300 pax so as to standardized the price and capacity of the venue.

Based on the data presented above, proponents can compute the compounded annual
growth rate of the sales of the competitor, and the resulting figure will be the basis for
projecting the supply of events place in Tarlac City:

CAGR = (End value/Start value)^(1/(number of periods-1))-1

CAGR = (10,468,969.65/ 5,914,616.90)^(1/4-1))-1

CAGR = .0654 or 7%
 The supply projection is:

SUPPLY PROJECTION FOR EVENTS

800.00
697.93
700.00 672.38
647.77
601.21 624.05
579.20
600.00

500.00

400.00

300.00

200.00

100.00

-
2020 2021 2022 2023 2024 2025

C. DEMAND-SUPPY ANALYSIS

Demand-Supply Analysis (No. of events)

9,000.00 8,480.23
7,870.69 8,169.78
8,000.00 7,304.97 7,582.56
7,037.54
7,000.00
6,000.00
5,000.00
4,000.00
3,000.00
2,000.00
579.20 601.21 624.05 647.77 672.38 697.93
1,000.00
-
2020 2021 2022 2023 2024 2025

Annual Demand Annual Supply

 Based on the information above, there is a staggering gap between demand and
supply. The proponents believe that this is due to poor geographical (i.e. poor parking space) and
psychographical segmentation (i.e. different taste preference in celebrating an event) of the
service.

Based on the survey, 30% of them said that it is not practical for them to celebrate in a
events place and would rather celebrate at home and some also said that they would prefer to
travel in foreign countries. 60% of the respondents choose that they would like to try something
new.

As much as the proponents would like to serve all of the demand for events place, the
proponents face economic constraints such as financial, labor, facilities, among others, and due
to those constraints, the business can only serve 36% (Market share) of the demand-supply gap.

D. MARKET SHARE

The market share is computed as follows:

𝑂𝑐𝑐𝑎𝑠𝑠𝑖𝑜 𝐸𝑣𝑒𝑛𝑡𝑠′ 2020 𝑆𝑎𝑙𝑒𝑠

Market Share = 𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑑𝑢𝑠𝑡𝑟𝑦 2020 𝑆𝑎𝑙𝑒𝑠

𝑃 4.864𝑀
Total Market Share = = 36%
𝑃 13.551

Market Share

24%
36%

21%
19%

Bella Plaza Central Park L-Square Occasio

The Market Share of “Occassio Events” is 12% higher as compared to their main

competitor “Bella Plaza” ‘s market share for 2020. This is because of 60% of the respondents

chose that they’d like to try something new and other factor like wide parking space, lesser price,

etc.