CHAPTER 2

MARKET FEASIBILITY

Product Description

Chicken is a lean meat with loads of proteins, it is also high on cholesterol.

However, chicken provides selenium which contains antioxidants that help control free

radicals and improve your immune system. A 100gms of cooked chicken would usually

contain 239 calories. Of 100gms, 27gms would be only protein which is important for

growth and development of various organs in the body. Besides, chicken also helps in

maintaining the desired body weight. Furthermore, it gives zinc and iron and is an

excellent source for Vitamins B6, B12 and D.

Meanwhile, the Cardaba banana is often used as a carbohydrate substitute for corn

and rice and is being studied for its ability to provide a replacement crop for potatoes in

areas impacted by crop failure due to climate change.

The Cardaba banana is most often used in sweet and savory cooked applications.

Sliced or whole Cardaba can be grilled or fried and topped simply with sugar. They can

be boiled in sweet syrup or mashed and formed into pancakes then grilled. Wrapped in

lumpia wrappers, they can be deep fried then served as a sweet or savory snack

depending on what toppings they are paired with. Cardaba banana can also be

caramelized and incorporated into desserts.

Chicuron was made to offer quality and nutritious food in the market, and make

customers realize the benefits they could get in eating banana and chicken. The

4|Page
researchers intend to make enough profit to generate and finance the growth and

development in the quality product. They also maintain a friendly, fair, and creative work

environment, which respects diversity, new ideas, and hard work. The objective is to

promote and share the importance of the less appreciated foods like vegetables. It would

be successful and feasible to market if they could satisfy the wants of their prospective

customers.

SWOT Analysis

Using the SWOT Analysis, the proponents are able to see what strategies to

follow, what position they have in the market, and what opportunities they could take

advantage of. It will also let them recognize the threats and weaknesses their business

may have, and will be able to work on them and improve them. It is in their best interest

to reduce the threats and to maximize the opportunities and advantages they may have in

the market. They should then make sure to be consistent and not be biased with their

SWOT Analysis. They would then reevaluate their strategy every now and then, to be

based on their costumer’s behavior and the competition on the market.

 Strengths

 Ingredients that will be used are cheap

 Bananas are not seasonal, and is always available

 Affordable and reasonable price

 Friendly and approachable managers

5|Page
  Attention-grabbing brand poster and catchy tag line

 Healthier and totally satisfying meal

 Easily reached and open location

 Weaknesses

 New product

 New to the market

 Customers are likely to choose products they’re used to

 Limited financial support

 Opportunities

 New product – will attract curious customers

 First to offer chicken turon in the market

 Greater market

 Possibility of higher numbers of consumers

 Online marketing using social media like Facebook, Twitter etc.

 Threats

 Bird Flu may hit the chickens again

 Other successful food industries

 Competition will rise; New marketing strategies and tactics by other

established competitors.

 Unsatisfied buyers might not buy the product again

6|Page
  Intolerable price increases by suppliers may occur.

Market Segment

Filipinos are known to love street foods. And out of the Filipino population,

teenagers are specifically into eating and trying something new. The proponents aim to

make the students and teenager community their target customer, as they are known to

love the taste of original turon.

Curiosity will be the proponents’ advantage for the product is new and innovative.

And this generation is into new and interesting things, so there is no doubt that they will

try the product, and sooner or later would love it. In the future, the proponents also aim to

introduce the product to everyone’s taste buds, which they’ll surely love and buy over

and over again.

Table 2.1 Distribution of Students per department of Colegio de Dagupan

STRAND/GRADE Frequency (N=223) Percentage

ABM 76 34%

STEM 61 27%

HUMSS 18 8%

GAS 29 13%

7|Page
 ICT 8 4%

TVL-HE 8 4%

Grade 8 11 5%

Grade 9 12 5%

Total 223 100%

Demand and Supply

Demand analysis is the study of sales generated by a good or service to determine

the reasons for its success or failure, and how its sales performance can be improved.

Demand is the amount of goods that consumers or buyers are willing and capable to buy

at a specific price in a specific time period while everything else remains the same.

Demand is an economic principle that describes the willingness and desire of consumers

to purchase specific goods. It is meant to determine the pattern of consumption for the

product.

A supply analysis on the other hand is a detailed review of the inputs and outputs

of a process that is employed to assess how the available quantity of a product is affected

by changes in demand, input factors and production techniques. Supply analysis is often

used to make key policy decisions by manufacturing business managers since it gives

them insight into how shifts in production are likely to influence market supply.

8|Page
Table 2.2 Market Survey Results

Frequency (N = 223) Percentage

Gender

 Male 84 38%

 Female 138 62%

Age

 13-15 26 12%

 16-17 116 52%

 18-19 81 36%
Health consciousness
Respondent’s
 Yes 156 70%
Profile
 No 67 30%
Awareness of Health Benefits

 Yes 164 74%

 No 59 26%
Daily Budget

 PHP 40-80 44 20%

 PHP 80-120 86 39%

 PHP 120-160 87 39%

 OTHERS 6 3%
Demand Do you eat turon?

 Yes 206 92%

 No 17 8%
Do you prefer chicken turon?
9|Page
  Yes 200 90%

 No 23 10%
Times a week eating turon

 Everyday 52 23%

 Once a week 72 32%

 Twice a week 67 30%

 Thrice a week 30 13%

 Others 2 1%
Product Times a week willing to buy

Acceptability our product

 Everyday 59 26%

 Once a week 52 23%

 Twice a week 69 31%

 Thrice a week 39 17%

 Others 4 1%
Where do you want to buy

the product

 Food Carts 144 65%

 Restaurants 18 8%

 Bakery 33 15%

 Fast Food Chains 26 11%

 Others 2 1%
Packaging

 Paper Bag 175 78%

10 | P a g e
  Plastic 30 14%

 Plastic Cup 18 8%
Would you refer the product

to others?

 Yes 212 95%

 No 11 5%
Advertising Media

 Print Ad 67 30%

 TV Ad 31 14%

 Radio Ad 5 2%

 Internet 120 54%

Price

 PHP 8-10 173 78%

 PHP 11-13 33 15%

 PHP 14-15 17 8%

The table above shows the characteristics of the respondents to try “Chicuron”.

The respondents were composed of 223 students of Colegio de Dagupan.

Profile of Respondents. The table above shows the profile of the respondents.

For the profile of respondents, the researchers asked their gender, age and daily

allowance. As to the respondents’ gender, majority of them are female with a percentage

of 62% while 38% of them are male. 12% of the respondents are 13 to 15 years old, 52%

are 16 to 17 years old, while 36% are 18 to 19 years old. Also, as for the respondents’

daily allowance, a total of 78% of the respondents have allowances amounting to Php 80-

11 | P a g e
120 and Php 120-160 , and 20% of them have a daily allowance of Php 40-80. The

proponents therefore conclude that the target market is financially able to purchase

Chicuron.

Health Consciousness and Awareness of Health Benefits. Majority of the

respondents are health conscious, consisting of 70% of the respondents, while only few

are not. This could mean that a lot of the target market will prefer health and nutritious

food than others. Also, a majorit of the respondents are aware of the health benefits of

eating chicken, consisting of 74% of the respondents, while only 26% aren’t aware of

chicken’s health benefits. The proponents therefore conclude that the target market would

then prefer Chicuron, as Chicuron is a quality and a nutritious food, and it will make the

costumers realize the benefits they could get in eating banana and chicken.

Frequency of eating turon. A total of 92% of the respondents eat turon. In these,

32% answered they eat turon once a week and 30% of them eat turon twice a week. 23%

of them even answered they eat turon every day. These data may conclude that the target

market of the proponents are lovers of turon, and will likely also love the product

Chicuron, as it is a variety of their well-loved turon.

Respondents’ preference and willingness to buy Chicken Turon. A majority of 90%

of the respondents prefer the taste of chicken turon while 10% of them prefer the original

taste of turon. Also, 31% of the respondents are willing to buy Chicuron twice a week,

26% of them are willing to buy every day, 23% of them are willing to buy once a week,

12 | P a g e
and 17% of them are willing to buy thrice a week. These data may mean that the product

is well-received by the market.

Respondents’ desire of where to buy Chicuron. As for the respondents’ desire

of where to buy the product, a majority of 65% of the respondents prefer food carts, while

bakery, fast food chains, and restaurants gathered a percentage of 15%, 11% and 8%,

respectively.

Respondents preference on Chicuron’s packaging. Majority of the respondents

prefer paper bags as the packaging of the product, with a percentage of 78%. Meanwhile,

plastic and plastic cups gathered a percentage of 14% and 8%, respectively.

Willingness to refer Chicuron to others. Majority of the respondents are willing

to refer Chicuron to others, with a percentage of 95%. This may mean that they are

satisfied by the product, that they want others to know of the product’s existence too.

Advertising Media that will influence the respondents to buy Chicuron. 54%

of the respondents answered internet to be the most influential advertisement. This may

be because the target market are well-oriented on technology. Print advertisement and TV

advertisement have a percentage of 30% and 14%, respectively.

13 | P a g e
 Respondents’ price willingness to spend for Chicuron. 78% of the respondents

are willing to buy the product at the price of Php 8-10, 15% of them are willing to pay

Php 11-13, while 8% of them are willing to pay Php 14-15.

Demand

To calculate the annual demand sample, the researchers used the data gathered

based on the survey conducted regarding the Average consumption of chicuron.

Table 2.3 Average Consumption for Chicuron

Frequency Average Price of Product Consumption

200 10 2000/223
Average Consumption for Php 8.97

Banana Choco-nut Crepe

Table 2.3 represents the average consumption for chicuron. The total spending is

divided by to the total number of respondents which results to P 8.97.

Table 2.4 Demand Sample

Frequency Consumption Consumption in Demand per

per day a month year

(5 days per (4 weeks in a (12 months)

week) month)
Everyday 52 2332.2 9328.8 111945.6
Once a week 72 3229.2 12916.8 155001.6
Twice a week 67 3004.95 12019.8 144237.6
Thrice a week 30 1345.5 5382 64584

Others:

14 | P a g e
Once a month 2 89.7 358.8 4305.6

Total 223 10,001.55 40,006.2 480,080.4

The table above shows the average consumption of the respondents, which is

needed for the computation of the demand projection. In order to project the demand, the

researchers used the formula:

Demand= Population x Annual Demand Sample/ Sample Population

Where: Population= 530 Sample Population= 223

Annual Demand= 480,080.4

From the formula given, the researchers derived with 1,140,998.26 as the demand

projection.

Demand Forecast

Table 2.5 Demand Forecast

Year Annual Demand

2018- 2019 1,140,998.26
2019- 2020 1,154,462.04
2020- 2021 1,167,925.82
2021- 2022 1,181,389.6
2022- 2023 1,194,853.38

Since the proposed product is new to the market, there can be no data to base an

annual increase of demand. These figures will increase annually by 1.18% based on the

growth rate of population in Pangasinan. This was based on the Census of Population and

15 | P a g e
Housing conducted by the local government of Pangasinan. Using the annual growth rate,

the table above shows the demand projection of the proposed business from 2019-2023.

Supply Analysis

Supply analysis is based on the primary data gathered by the proponents through

the interviews conducted from their indirect competitors in Dagupan City. The location

of the business, however, is near to mall where their competitors could be found. In

determining the supply, the researchers focused more on their direct competitors who are

in the same food category such as Bananaque Stand, Chicken Skin, and Kwek Kwek

Stand. After gathering the data, the researchers used the formula:

Supply= Daily Sales x 240 (5 days in a week; 4 weeks in a month; 12 months in a year)

Table 2.6 Annual Sales of Competitors

Direct Competitors Daily Sales Annual Sales

Banana cue Stand 800 192,000

Chicken Skin (Crops) Stand 650 156,000

Kwek Kwek Stand 1,200 288,000

Total 636,000

Chicuron focused on their direct competitors that are in the same level as to the

computed daily sales and as to the category of the food. Since the business is still new to

market it is expected that it will only earn low profits in its first few years. The data

above will be used as substitute for supply forecast.

Table 2.7 Supply Forecast

16 | P a g e
 Year Annual Supply
2018- 2019 636,000.0
2019- 2020 643,504.8
2020- 2021 651,009.6
2021- 2022 658,514.4
2022- 2023 666,019.2

This table shows that the supply is earning 1.18% annually; it was based on the

annual population growth of Pangasinan.

Demand-Supply Analysis

After determining the supply and demand of the proposed business, the

proponents have come up with the unsatisfied demand of 83% computed as follows:

Table 2.8 Demand-Supply Analysis

Year Demand Forecast Supply Forecast Unsatisfied Unsatisfied

Demand Demand

Percentage
2018- 2019 1,140,998.26 636,000.0 504,998.26 44%
2019- 2020 1,154,462.04 643,504.8 510,957.24 44%
2020- 2021 1,167,925.82 651,009.6 516,916.22 44%
2021- 2022 1,181,389.6 658,514.4 522,875.252 44%
2022- 2023 1,194,853.38 666,019.2 528834.18 44%

Factors Affecting the Market

Demand. This is defined as the consumer’s willingness and ability to pay a sum

of money for Chicuron. There are several factors that affect the demand of every

consumer as purported in most books of Economics. A change by one or combination of

17 | P a g e
them will basically change the demand data for Chicuron. The factors affecting demand

includes: Price, income, expectations, taste, and presence of childhood in the household.

Price. The law of demand states that when prices rise, the quantity demanded

falls. This also means that, when prices drop, demand will rise. People base their

purchasing decisions on price, if all other things are equal.

Income. This may affect their spending habits because the buying power of an

individual depends on this. When income rises, so will the quantity demanded. When

income falls, so will demand. In this study, the target market is students, which means

that their income derived from their allowance.

Taste. This is the desire, emotion, or preference for a good or service. When

tastes rise, so does the quantity demanded. Likewise, when tastes fall, it will depress the

quantity demanded. Not all people are attracted to the taste of banana (saba) which might

affect the demand for the product.

Population. The bigger the population the greater the opportunity for the business

to sell its product. The higher the population the higher the demand for the product.

Supply. The law of supply takes that as the prices rises, the quantity supplied

falls. This is a fundamental economic aspect that describes the total amount of specific

product or services that is available to consumers.

Number of Sellers. If the number of competitors increases then the consumers

will have more choices on whether where and what to buy. Higher competition usually

means a reduction in supply, while less competition gives the producer an opportunity to

have a bigger market share with a larger supply.

18 | P a g e
 Production Cost. Higher production cost will lower profit, thus hinder supply.

When the cost of producing Chicuron increases, the supply decreases and vice versa.

Factors affecting production cost are input prices, wage rate, government regulation, and

taxes.

Taxes and Subsidies. Taxes are intented for the development of our country, but

since the business is a sole proprietorship, they are registered as Barangay Micro-

business Enterprises and only pays Php 1,000.00 for the permit and is renewable every 2

years, business awner consider this as costs.

Technology. Modern technology can increase supply due to the fact that new

machines and better methods of production are being produced because of technological

advancement.

Sales Forecast

Table 2.9 Sales Forecast

Year Projected Sales

2018- 2019 P259,200
2019- 2020 P272,160
2020- 2021 2P85,120
2021- 2022 P298,080
2022- 2023 P311,040

Table 2.9 shows the 5 years sales forecast of the business, it was derived from

multiplying the number of products to be produced daily which is 120 units to the selling

price, Php 9. The product will be multiplied also to the number of operating days in a

19 | P a g e
year which is 240. For the first year of the business operation, the computed projected

sales are Php 259,200. Based on the researchers’ objective, it should be increased by 5%

of the profits in three to five years, so the researchers multiplied the projected sales to

0.05.

Price Study

This part serves as a guide for the researchers to decide for the pricing strategy.

This is based on research conducted by the proponents through personal interview and

observation. Since Chicuron is the only establishment in Dagupan City that offers turon

with chicken, we can conclude that Banana Cue Stand, Chicken Skin, and Kwek kwek

Stand are our direct competitor

Table 2.10 Direct Competitors

BUSINESS NAME PRODUCTS PRICE

Banana Cue Stand Banana Cue Php 8.00
Kamote Cue Php 8.00
Turon Php 7.00
Chicken Skin Stand Chicken Skin Php 5.00
Chicken Intestines Php 5.00
(Crops)
Kwek Kwek Stand Kwek Kwek Php 10.00
Fish Ball Php 1.00
Kikiam Php 1.00
Hotdog Php 7.00

Table 2.10 shows the prices of our direct competitor since there is an existing

establishment that offers the same product with Chicuron. This will be our basis in setting

our prices, with due consideration to production cost and better quality of products

produced and by anticipating demand which will satisfy the target market.

20 | P a g e
Market Share

In determining the market share, the researchers used the formula:

Market Share= Sales Forecast/Unsatisified Demand * Unsatisfied Demand Percentage

Where: Annual Sales Forecast= Php 259,000.00

Unsatisified Demand = 504,998.26

Unsatisfied Demand Percentage= 44%

Market Share = 22.56%

Figure 2.1 Market Share

Sales

0.23
0.33 Market Share
Unsatisfied Demand
Satisfied Demand

Marketing Programs
0.44
and Strategies

Marketing

Program as defined is a coordinated set of activities that helps to achieve goals of a

business. It is used to describe the different kinds of choices organizations have to make

in the whole process of bringing a product or service to market – to put the right product

in the right place, at the right price, at the right time. Marketing program includes the 4

P’s under marketing mix which are the Product, Price, Place and Promotion.

21 | P a g e
Product

Chicuron or Chicken turon was made to offer quality and nutritious food in the

market, and make customers realize the benefits they could get in eating banana and

chicken. Banana that is rich in nutrients as well as chicken can satisfy human needs and

wants of consumers.

The Cardaba banana is used in many traditional Filipino foods such as banana

ketchup, halo-halo, and a sweet stew known as binignit. It is also used to make a fried

and sweetened banana on a stick known as banana cue, banana fritters or maruya, and

fried banana spring rolls known as turon. The Cardaba banana is often used as a

carbohydrate substitute for corn and rice and is being studied for its ability to provide a

replacement crop for potatoes in areas impacted by crop failure due to climate change.

According to the survey conducted, the respondents have high satisfaction on

Chicuron, it is based on the question if they would refer Chicuron to others. 90 % of the

respondents agreed with it.

Figure 2.2 Product Logo Figure 2.3 Sample Product

22 | P a g e
Product Tagline:

“Chicken can Turon me on.”

Figure 2.4 Sample Packaging

Price

Generally, a company offering a new product has two pricing options: to set a

high price or to set a low price, these define market skimming and market penetration,

respectively (Diola&Tichepco, 2009). The researchers decided to apply market

penetration to capture a large market share by attracting buyers through low prices.

Thus, the researchers are not concerned with setting high price to signal that it has

a good taste, or setting low price to sell large quantities. Instead, they priced it according

23 | P a g e
to its cost of production or the so-called cost-plus pricing strategy, which suits to its

target market.

As mentioned above, the product will be offered for Php 10.00. This was

formulated using a computation showed below:

Table 2.11 Cost-Plus Pricing Strategy

Raw Materials Quantity Unit Cost Total Cost

Banana (Saba) 1 ½ kilo Php 40 per kilo Php 60.00
Chicken 2 ½ kilo Php 120 per kilo Php 300.00
Turon Wrapper 4 packs Php 13 per pack Php 52.00
Brown Sugar ½ kilo Php 60 per kilo Php 30.00
Cooking oil 1 bottle Php 60 per bottle Php 60.00
Brown Paper Bag 2 Packs Php 20 per pack Php 40.00

with Logo
Total Php 542. 00
Divided by: total 100 pcs

output produced
Total Php 5.42
Multiply by: 80% Php 10.00

Mark up

The result of the survey conducted, P10.00 had the highest percentage as to the

question of how much the respondents are willing to spend to try Chicuron. But this price

will still be subject to change depending on the changes of prices of raw materials in the

market which will be used in production.

24 | P a g e
Place

A business must have a convenient and sustainable location for the customers.

Based on the result of the survey conducted the customers wants to buy Chicuron on

Food Carts (65%) that’s why the researchers decided to put up the food cart at Arellano

Street, Dagupan City, specifically in the Hepa Street (beside Colegio de Dagupan)

because their target customers are students, and employees. It is a good place to start a

business because it gives an easy accessibility for customer’s convenience. But since it is

a food carts, it can be positioned to another location where other customers have easy

access to the product.

Direct marketing Channel will be used by the researchers since the business is

new to the customers and to the public. The researchers will sell chicuron directly to their

target customers.

Figure 2.5 Distribution Channel

CUSTOMERS

Promotion

25 | P a g e
 The customers must be aware of the product, but at the same time, the target

market and advertising costs must be considered. A newly-established business will have

difficulty in affording TV and radio broadcasting, and classified ads in newspapers.

Flyers and tarpaulin would be appropriate for the business. Word of mouth will also be a

great help in the introduction of Chicuron. Since the result of the survey conducted, print

ad (54%) and internet (30%) got the highest percentage, the researchers will focused on

promoting their product using flyers, tarpaulin and on chicuron’s facebook page. Personal

selling helps persuade and convince consumers to try Chokamote, and it develops

customer relationship. Hence, it is the most flexible means of delivering a promotional

message. Print Advertising contains flyers and tarpaulin. Steve Jobs said that

advertisement itself is an art. To attract the interests of people, advertising companies

employ different advertising techniques to convey the right message to the public from

all possible perspectives. It purports to appeal to the emotions of humans.

Your audience doesn't just want offers, deals, or news; they want to feel like you

"get" them; it's that sense of connection that draws customers back again and again

(Gabriel, 2015).

26 | P a g e
 The researchers may try joining Exposition or Trade Fair to increase awareness of

the existence of their business. This would also give the researchers a chance to showcase

the goodness of their product.

Figure 2.6 Sample Flyers

Figure 2.7 Facebook Page

27 | P a g e
Figure 2.8 Sample Tarpaulin

28 | P a g e