G.

Major Assumptions

Marketing Aspect

Since Epicurean is expected to offer a wide range of chocolate products, and a

quantified demand and supply for each of the shops products simply does not exist, acquiring
such information would then be too costly. Hence, the proponents provided data regarding
Epicureans products demand and supply with the following assumptions:

Demand

Surveys were conducted in order to identify the current demand of chocolate products in
Davao City. The survey was conducted to 524 respondents, composed of students and young
professionals, ages ranging between 15 and 34 years old, with a weekly allowance of 1001 and
above. The results were used to establish an estimate of the how many of the total population of
Davao City under that age bracket are potential customers of a chocolate house in Davao City.
Forecasting demand for the next five years, the proponents used Davao Citys population
growth rate in order to estimate the annual increase in chocolate products demand.

Supply

The supply of chocolate products in Davao City for the past 5 years (2011 2015) were
taken from Business Bureau. We used the number of coffee and pastry shops present in Davao
City as a determinant for the products supply. These types of businesses do not only serve
chocolate products, but other similar products as well which could be substitutes for Epicureans
products. The results did not show any trend or pattern, hence, in forecasting the supply for the
next five years, the group used averaging. The results for the three years preceding the year in
question were averaged to determine the supply for that year.

Incorporating demand and supply into an analysis, the group expected that the demand-
supply ratio would continually increase for the next five years.