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Demand For Final
Demand For Final
Demand
Kinect Game Hub is a new business that offers a unique kind of entertainment. Its
demand would be computed based on different factors. The population of target market
and its growth rate, gross market acceptability, acceptable target market, and annual
frequency are considered in projecting the demand for five years.
POPULATION OF EMPLOYEES
Given that Kinect Game Hub is within the Poblacion District, the population
within the range of 20-30 years old of the district for the past five years was determined.
Since, there is no available data for the employment rate per district; we used the rate for
the entire Davao City to solve for the Population of Employees.
YEAR
POPULATION
(20-30 Y.O)
EMPLOYMENT
RATE
POPULATION
(EMPLOYEES-20-30 Y.O)
AS % OF PRIOR
DEMAND
2007
2008
2009
2010
2011
30,133
31,097
32,092
33,119
34,179
95.1%
95.7%
93.8%
93.9%
93.9%
28,656
29,760
30,102
31,099
32,094
3.85%
1.15%
3.31%
3.20%
POPULATION
(Employees-20-30 y.o.)
2016
2017
2018
2019
36,990
38,055
39,151
40,278
41,438
2020
Given this projected population of Employees, Kinect Game Hubs demand will have a
potential increase in the future.
ACCEPTABLE TARGET MARKET
Table 3: Computation of Acceptable target market
YEAR
POPULATION
OF EMPLOYEES
GROSS MARKET
ACCEPTABILITY
ACCEPTABLE
TARGET
MARKET
2016
2017
2018
2019
2020
36,990
38,055
39,151
40,278
41,438
59%
59%
59%
59%
59%
24,413
25,116
25,840
26,584
27,349
out of the 177 respondents who said yes, we narrowed down the percentage by counting the
respondents who said that they are willing to spend Php 240 per hour for a game room with a 4
person-capacity, thus getting the gross market acceptability of 115 respondents or 59%.
Table: Computation of Annual Frequency
RESPONDENTS
(a)
3
48
30
2
57
37
177
FREQUENCY
Everyday
Once a week
Twice a week
Thrice a week
Once a month
Twice a month
TOTAL
ANNUAL
EQUIVALENT
(b)
360 days
52 weeks
104 weeks
156 weeks
12 months
24 months
ANNUAL
FREQUENCY
in average per
person
(a*b)
1080
2496
3120
312
684
888
8580
48
The Annual Frequency can be based on the market survey done by the proponents. The
number of respondents for each kind of frequency is multiplied by the annual equivalent to get
the Annual Frequency in average per person. The annual equivalent is the corresponding number
of days, weeks, or months for a year depending on the kind of frequency. Then, the total Annual
Frequency in average person computed previously is divided to the total number of respondents
who are willing to avail of the service offered by Kinect game hub. The annual frequency for
Kinect game Hub is 48 times.
YEAR
ACCEPTABLE TARGET
MARKET
ANNUAL
FREQUENCY
ANNUAL
DEMAND
2016
21,824
48
1,047,552
2017
22,452
48
1,077,696
2018
23,099
48
1,108,752
2019
23,764
48
1,140,672
2020
24,449
48
1,173,552
In finding the Projected Annual Demand for five years, the proponents considered the
population of employees, gross market acceptability, acceptable target market and annual
frequency. But in the table above, only the acceptable target market and annual frequency are
shown for simplicity given that other factors not shown above were already computed in the
previous tables. The acceptable target from table 3 is multiplied to the annual frequency from
table 4 to get the annual demand for each year. As a result, Kinect game Hub will have the
annual demand for the year 2016 of 1,047,552 persons and so on.
The projected annual demand of Kinect Game Hub can still be affected by many factors.
One of such is the major expenditure items to which their income translate to. An example would
be expenses on food, transportation, house rent and utilities. Another is the
http://www.numbeo.com/cost-of-living/city_result.jsp?country=Philippines&city=Davao