Chapter 3

MARKETING ASPECT

Marketing is a very important aspect in business since it contributes greatly to the

success of the organization. Production and distribution depends largely on

marketing.(www.scribd.com)

The marketing aspect is said to be the lifeblood of all feasibility studies. It makes

a big impact on the study because it serves as the basics for the proponents to have a

clear picture whether to pursue the business or not. It will determine the factors to be

considered in establishing and coming up with the business as well as the financial basis

through the projected demand. This chapter seeks to determine the opportunities and

threats, the target market, the total demand and supply of the product, the competition

and the marketing programs which refers to the product, price, place and promotional

strategies(www.studymoose.com).

Introduction

The proponents of this study decided to enter into the furniture industry by putting

up Sparks – Furniture Shop to cater to the growing demand for furniture. The proposed

business will be offering a variety of furniture that are made of steels, aluminums, glass

and iron.

The proponents decided to locate the business at Pakkil, Lower Caluttit, Bontoc

Mountain Province. However, the physical store will be at the Kalangeg Building infront

of the College. Bontoc, being the business capital of Mountain Province will be the most

appropriate location of the proposed business since it is accessible through many routes.
 Given also that there are only two existing furniture shop in Bontoc offering

furniture that are made only of woods, the proposed business will be the first furniture

shop to offer furniture that are made of steels, aluminums, glass and iron.

A. Product Description

a) Name of Establishment

The proposed business will be named as “SPARKS - Furniture Shop”, exclusively

be for manufacturing of tables (dining and center tables), beds (single, twin, double

deck(single), queen-sized), cabinets, chairs, stool, sala set, dining set and coffee set for

houses, boarding houses, hotels, restaurants and cafes.

Table 3.1 Products to be Offered

Products Product Descriptions
1. Tables
o Dining Table -Two layered tempered glass top; table
legs are made of stainless-steel tubes
Dimension: 120 x 70 x 75 cm
o Center Table -Tempered glass table top with stainless
steel legs
Dimension: 75 x 44 x 42 cm
2.Beds
o Single Bed -Made from all metal materials coated to
provide a rust-free look; bed legs are
made from metal tubings
Dimension: 91.44 (w) x 190.5 (l) cm
o Twin Bed -Made from all metal materials coated with
black frame, accented headboard and
footboard
Dimension: 137.2(w) x 190.5 (l) cm
o Double Deck (single) -Made from all metal materials coated;
ladders and side rail are made from
stainless tube and the headboard and
footboard have oval tubings.
Dimension: 91.4 (w) x 190.5 (l) cm
o Queen-sized Bed -The frames are made from steel and
metal for strength and durability
Dimension: 152.4 (w) x 190.5(l) cm
 3.Cabinet -It is made of metal tubes and steel coated
to provide a rust-free look
4.Chair -It is stackable; the seat rests are made
from metal; chair legs are made of steel
coated to provide rust free look
Dimension: 58 x 44 x 94 cm
5.Stool -It is a multi-functional bar height and is
made of metal tubes and frame
6.Sala Set -Composed of a table with metal frames on
top and steel for legs, a corner seat, a
bench with back rest and a bench
Dimension: corner seat (55 x 135 x 78 cm);
bench with backrest (55 x 125 x 78 cm);
bench (45 x 120 x 43 cm)
7. Dining Set -Two layered tempered glass top for
o 4 seaters safety; table legs are made of stainless
o 6 seaters steel; chair legs are made of steel coated
o 8 seaters to provide a rust-free look.
Dimension: table 140 x 80 x 75 cm; chair
58 x 44 x 94 cm
8. Coffee Set -Table top is made of metal that was
o 2 seaters customized to look like a fiberboard and it
o 4 seaters has a storage underneath for magazines
o 6 seaters and newspapers; chairs are made of
o 8 seaters metals and steel tubes.
The proposed business will be selling its products to its target customers based on

the description and dimensions mentioned above. And specifically as follows: Sparks will

be selling the tables based on the materials used, description and dimension; the bed

depending on its size, style and materials used; the cabinet based on its size; the

stackable chairs and stool to be sold per item.

Also, Sparks will be selling sets such as sala set, dining set and coffee set. The

sets are composed of tables and chairs however the number of chairs varies from two to

eight. The sala set that is composed of a table, corner seat, bench with back rest and a

bench will be sold per set. And lastly, the proposed business will be selling dining set and

coffee depending on the dimension of table and number of seats.

B. Market Description

Bontoc is the capital of Mountain Province. It is composed of 16 barangays namely:

Alab Oriente, Alab Proper, Balili, Bayyo, Bontoc Ili, Caluttit, Caneo, Dalican, Gonogon,

Guina-ang, Mainit, Maligcong, Poblacion, Samoki, Talubin and Tocucan. The

households, schools, hotels, restaurants and cafes located in all the barangays are the

primary target of the proposed business.

According to the data retrieved from the Bontoc, Municipal Capitol, there are only

two existing furniture shops in Bontoc. One located at Pakkil, Lower Caluttit and the other

at Banyas, Samoki. The shops offer all kinds of furniture like chairs, beds and tables that

are made purely of woods.

The proposed business differs from the two existing shops as to the materials

being used in manufacturing furniture. Instead of wood as the primary material, steels,

metals, aluminums, glass and iron will be used.

Table 3.2 Actual Population

Respondents 2014 2015 2016 2017 2018
Households 5,508 5,519 5,507 5,579 5,592
Boarding Houses 4 16 23 31 68
Cafes 2 6 13 18 45
Resto Bar 0 3 6 11 13
Café and Restaurant 1 2 7 9 12
Eatery 1 4 4 5 12
Hotel and Restaurants 1 2 6 9 11
Restaurant 0 1 2 4 8
Lodging 1 1 2 3 4
Total 5,518 5,554 5,570 5,669 5,765
Source: Municipal Capitol of Bontoc.
Table 3.3 Projected Population
Respondents 2019 2020 2021 2022 2023
Households 5,541 5,548 5,553 5,563 5,559
Boarding Houses 28 33 37 39 41
Cafes 17 20 23 24 26
Resto Bar 7 8 9 9 9
Café and Restaurant 6 7 8 9 8
Eatery 5 6 6 7 7
Hotel and Restaurants 6 7 8 8 8
Restaurant 3 4 4 5 5
Lodging 2 2 3 3 3
Total 5,615 5,635 5,651 5,667 5,667
Note: The projected population was computed using the moving average method.
Sample Computation: 2019 = 5,508 + 5,519 + 5,507 + 5,579 + 5,592 / 5 = 5,541
2020 = 5,519 + 5,507 + 5,579 + 5,592 + 5,541 / 5 = 5,548
2021 = 5,507 + 5,579 + 5,592 + 5,541 + 5,548 / 5 = 5,553
2022 = 5,579 + 5,592 + 5,541 + 5,548 + 5,553 / 5 = 5,563
2023 = 5,592 + 5,541 + 5,548 + 5,553 + 5,563 / 5 = 5,559

Demand and Supply Analysis

To determine the demand of the target market, the researchers have gathered the

data regarding the population count of the primary target which are the households,

Boarding Houses, Cafes, Resto Bar, Café and Restaurant, Eatery, Hotel and

Restaurants, Restaurant, Lodging around Bontoc, Mountain Province.

The result of the survey was then utilized to determine and analyze the demand

and supply of the proposed business.

Demand for Products Offered

Table 3.4 Basis for Computation of Demand for Products

Choices Responses Percentage
Yes 212 56.68%
No 162 43.32%
Total 374 100%
Note: Please refer to the Survey Results Question 1.
Table 3.5 Computation of Demand for Products
Demand for Products
Year Projected Population Target Market Demand Supplied Free Market
(56.68%) (86.63%) (13.68%) (72.95%)
2019 5,615 3,183 2,757 426 2,332
2020 5,635 3,194 2,767 427 2,340
2021 5,651 3,203 2,775 428 2,346
2022 5,667 3,212 2,783 429 2,353
2023 5,667 3,212 2,782 429 2,353
Note: Target market of 56.68% was lifted from the question no. 3, Survey Results.
Demand rate was lifted from the question no. 3, Survey Results.
Supplied rate was lifted from the question no. 2, Survey Results.
Free market is the difference between the demand and supplies column.

Table 3.6 Basis for the Computation of Demand per Product

Choices Responses Percentage
Yes No Total Yes No Total
Dining Table 159 215 374 42.51% 57.49% 100.00%
Center Table 133 241 374 35.56% 64.44% 100.00%
Single Bed 99 275 374 26.47% 73.53% 100.00%
Twin Bed 80 294 374 21.39% 78.61% 100.00%
Double Deck
(Single) 92 282 374 24.60% 75.40% 100.00%
Queen-sized Bed 97 277 374 25.94% 74.06% 100.00%
Cabinet 202 172 374 54.01% 45.99% 100.00%
Chair 143 231 374 38.24% 61.76% 100.00%
Stool 71 303 374 18.98% 81.02% 100.00%
Sala Set 159 215 374 42.51% 57.49% 100.00%
Dinning Set
4 Seaters 87 287 374 23.26% 76.74% 100.00%
6 Seaters 108 266 374 28.88% 71.12% 100.00%
8 seaters 80 294 374 21.39% 78.61% 100.00%
Coffee Set
2 Seaters 72 302 374 19.25% 80.75% 100.00%
4 Seaters 82 292 374 21.93% 78.07% 100.00%
6 Seaters 54 320 374 14.44% 85.56% 100.00%
8 seaters 62 312 374 16.58% 83.42% 100.00%
Total 1780 4578 6358
Note: Please refer to the Survey Results Table 3.44.
Table 3.7 Computation for 2019 Demand

Note: FM is the Free Market from table 3.5

The % was lifted from table 3.6
MS is the Market Share based on the projected population multiplied to the percentage of
the target market who are willing to buy the offered products.
The Frequency is from the survey results, question 6, which was proportionately
distributed (eg. Once a year 8.95% x 5/1). then multiplied to the MS.
TQD is the Total Quantity Demanded which is the average of Total demand divided by 5.
(eg. 1477/5 equals 295)
Table 3.8 Computation for 2020 Demand

Note: FM is the Free Market from table 3.5

The % was lifted from table 3.6
MS is the Market Share based on the projected population multiplied to the percentage of
the target market who are willing to buy the offered products.
The Frequency is from the survey results, question 6, which was proportionately
distributed (eg. Once a year 8.95% x 5/1). then multiplied to the MS.
TQD is the Total Quantity Demanded which is the average of Total demand divided by 5.
(eg. 1482/5 equals 296)
Table 3.9 Computation for 2021 Demand

Note: FM is the Free Market from table 3.5

The % was lifted from table 3.6
MS is the Market Share based on the projected population multiplied to the percentage of
the target market who are willing to buy the offered products.
The Frequency is from the survey results, question 6, which was proportionately
distributed (eg. Once a year 8.95% x 5/1). then multiplied to the MS.
TQD is the Total Quantity Demanded which is the average of Total demand divided by 5.
(eg. 1487/5 equals 297)
Table 3.10 Computation for 2022 Demand

Note: FM is the Free Market from table 3.5

The % was lifted from table 3.6
MS is the Market Share based on the projected population multiplied to the percentage of
the target market who are willing to buy the offered products.
The Frequency is from the survey results, question 6, which was proportionately
distributed (eg. Once a year 8.95% x 5/1). then multiplied to the MS.
TQD is the Total Quantity Demanded which is the average of Total demand divided by 5.
(eg. 1491/5 equals 298).
Table 3.11 Computation for 2023 Demand

Note: FM is the Free Market from table 3.5

The % was lifted from table 3.6
MS is the Market Share based on the projected population multiplied to the percentage of
the target market who are willing to buy the offered products.
The Frequency is from the survey results, question 6, which was proportionately
distributed (eg. Once a year 8.95% x 5/1). then multiplied to the MS.
TQD is the Total Quantity Demanded which is the average of Total demand divided by 5.
(eg. 1491/5 equals 298).
Projected Sales

The sales will be computed based on the normal capacity which is 6% of the

quantity demanded due to the reason that the proposed business will not be able to

cater to the demand for the offered products considering the manpower, storage,

materials and the startup capital for the business.

Table 3.12 Computation of Annual Sales (2019)

Note: FM is the Free Market lifted from table 3.5

The Percentage of Preference was lifted from table 3.6
MS is the Market Share based on the projected population multiplied to the percentage of
the target market who are willing to buy the offered products.
QD is the quantity demanded from table 3.7
NC is the Normal Capacity which is 6% of the quantity demanded.
The Annual Sales is the product of NC multiplied by the price.
Table 3.13 Computation of Annual Sales (2020)

Note: FM is the Free Market lifted from table 3.5

The Percentage of Preference was lifted from table 3.6
MS is the Market Share based on the projected population multiplied to the percentage of
the target market who are willing to buy the offered products.
QD is the quantity demanded from table 3.8
NC is the Normal Capacity which is 6% of the quantity demanded.
The Annual Sales is the product of NC multiplied by the price.
Table 3.14 Computation of Annual Sales (2021)

Note: FM is the Free Market lifted from table 3.5

The Percentage of Preference was lifted from table 3.6
MS is the Market Share based on the projected population multiplied to the percentage of
the target market who are willing to buy the offered products.
QD is the quantity demanded from table 3.9
NC is the Normal Capacity which is 6% of the quantity demanded.
The Annual Sales is the product of NC multiplied by the price.
Table 3.15 Computation of Annual Sales (2022)

Note: FM is the Free Market lifted from table 3.5

The Percentage of Preference was lifted from table 3.6
MS is the Market Share based on the projected population multiplied to the percentage of
the target market who are willing to buy the offered products.
QD is the quantity demanded from table 3.10
NC is the Normal Capacity which is 6% of the quantity demanded.
The Annual Sales is the product of NC multiplied by the price.
Table 3.16 Computation of Annual Sales (2023)

Note: FM is the Free Market lifted from table 3.5

The Percentage of Preference was lifted from table 3.6
MS is the Market Share based on the projected population multiplied to the percentage of
the target market who are willing to buy the offered products.
QD is the quantity demanded from table 3.11
NC is the Normal Capacity which is 6% of the quantity demanded.
The Annual Sales is the product of NC multiplied by the price.

SWOT Analysis

SWOT Analysis is framework used to evaluate company’s competitive composition

by identifying its strengths, weaknesses, opportunities and

threats(www.investopedia.com). It will be a great help to the proposed in identifying its

strengths, weaknesses, opportunities and threats in order to enhance its strengths, turn

weaknesses to strengths, take advantage of opportunities and lessen threats.

 Strength

1. The business will display its products at the 1st floor of Kalangeg Building located

at Caluttit, Bontoc which is accessible to customers since it is along the road.

2. Fast making- furniture made up of steels, iron and glass are faster to make than

wooden furniture.

3. The business will be selling the products that are of good quality that can last

longer.

Weakness

1. The business will offer products that shifts from the traditional wooden furniture to

glass and steel made furniture.

2. Controllable supply due to rusting.

Opportunities

1. The existing furniture shops cannot cater all the demand of furniture.

2. Strict prohibition of the DENR regarding the cutting of trees.

3. Wooden furniture can be attacked by termites.

Threats

1) Customer loyalty to their preferred furniture shop (suki).

2) Acceptance of the community towards the new product.

C. Marketing Strategies

It is the main objective of the business to provide best possible value and satisfy

the demand of the target market. In order to meet this, the management must establish

strategies that can warrant the achievement of such objective. The 4 P’s of marketing are

strategies which serves as a business’ stepping stone as it enters the industry.

a) Place Strategy

Sparks Furniture Shop will be located in Caluttit which is beside the DPWH

building and in front of JC computer shop. Locating the business in this place will

enable a greater access to the customers from different barangays of Bontoc since

it is along the road.

b) Pricing Strategy

Price is an essential factor in the success of failure of a business. It is where

the budget of the customer and the income of the seller meet for a transaction to

occur between the two parties.

Sparks Furniture Shop will be using the current pricing technique according

to the result of the survey. All the votes for the different price ranges were

consolidated and the proponents selected the corresponding price range garnering

the highest vote. The business will price its product basing from the average of the

price range with the highest votes.

c) Product Strategy

In determining the products to be offered, the business conducted an

informal interview to the owners of existing furniture shops in Bontoc.

Sparks Furniture Shop will be offering products that are commonly needed

by the target market. It also ensures the quality of the product through ensuring

that the business will only purchase good quality raw materials.

d) Promotion Strategy

Promotion is the way a business communicates what it does and what it

can offer to customers. It is how the business makes the customers aware of it. A
 business can adopt any kind of communication approach, either mass

communication or personal communication. This will help the business gain more

customers which means more sales.

Sparks Furniture Shop will promote its products through advertisements by

using tarpaulins, signage, and online promotion. The tarpaulin contains logo of the

business, contact number, location, and the products offered. The signage will be

placed at Poblacion junction (circle), barangay Samoki (near the waiting shed),

barangay Caluttit (near Dalog residence), and Chakchakan, Bontoc Ili (beside

Godong’s Lechon manok). The business will also create a facebook page where

we can advertise through posting the pictures of the products.

D. Business Name and Logo

Figure 3.1 Business Logo

The proposed business will be named Sparks – Furniture Shop. Sparks, literally
from the sparks produced when metals, steels and iron came together. The proponents
believe that name was suitable because the proponents will use metals, aluminums,
glass, irons and steels instead of wood in making their products.