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INTRODUCTION

Various micro businesses in Gattaran compose almost half of the growing


economy of the town. The less cost of putting such industry, easy capitalization and
efficient market identification provide an opportunity for those who wish to engage in this
business.

Empanada Express food cart is a manufacturing business of a tasteful and


affordable empanada. It is the first store to commercialize the delicacy in town providing
new concepts of fillings and the best choice for meryenda. It aims to earn profits and
expand its scope for the future by adding up its cart stations within the commercial sites
of the town.

OWNERSHIP: SOLE PROPRIETOR

NAME: EMPANADA EXPRESS

SLOGAN: Masarap na! Sulit pa!

TYPE OF BUSINESS: Empanada manufacturing business.

LOCATION: Pamilihang Bayan ng Gattaran and Saint Catherines Academy

TARGET MARKET

Empanada Express shall provide different kinds of healthy empanada to


all age groups. It will primarily cater a big area in Pamilihang Bayan of Gattaran where
empanada has a vast demand of consumers especially the working people. We are also
targeting the primary and secondary schools in Gattaran which are closer to one
another by distance (West Central School and Saint Catherines Academy) as our
secondary primary market. The students will tend to buy our products since we are the
only one who provides empanada in the town of Gattaran. Also, grade school and high
school students mostly love to take heavy snacks which then the Empanada Express
will provide so.

Aside from our two primary customers, those people, regardless of age and
condition, will have the chance to try it because our cart will go around the town as the
classes starts to resume. Hence, Empanada Express will target market a large area of
the said town.
MARKET SEGMENTATION

Market Segmentation
grade school high school market people homemakers

15%
29%

25%

31%

The potential customer for Empanada Express is subdivided by the researches


into 5 groups which are:

GRADE SCHOOL GROUP (11 YEAR-OLDS AND BELOW)

The market research indicates about 29% within the 500 square meter
radius around the proposed location of the cart. This segment of the market usually is
accompanied by parents or guardians and has the tendency to request to buy anything
that catches their interest or anything eye-candy.

HIGH SCHOOL GROUP (12-18 YEAR-OLDS)

The high school group has the tendency to spend freely on their own and
is usually going with barkada bonding. The market indicates about 31% of the potential
customers within the 500 square meter radius around the proposed location of the cart.

MARKET PEOPLE (19 YEAR-OLD and above)

The college group, the same as the high school group has the tendency to
spend freely on their own. However, more than going with the trend, the college group
has the more tendencies to look for affordable products. The market indicates about
25% of the potential customers within the 500 square meter radius around the proposed
location of the cart.

HOMEMAKERS (23 YEAR-OLDS AND ABOVE)

The homemakers spend most of their time inside their homes and do not
have time to visit snack houses. In tending their home chores they get to buy in the food
carts because it is mobile.By targeting this group, we cannot generate a large volume of
sales immediately; however, we can create a long term customers with them. The
researchers conservatively estimated to have at least 15% customers that could
patronize the food cart.

SURVEY

To systematically measure Empanada Express feasibility with respect to


possible customer preferences, the researchers have conducted a survey with 100
respondents selected randomly around the 500 square meter radius around the
proposed location of the food cart. The analysis for the said survey is as follows:

DEMAND AND SUPPLY ANALYSIS

The products and services to be provided by EMPANADA EXPRESS will a food cart
business operating in Gattaran, Cagayan. However, those products and services
offered is different from those usual food carts. Demand and supply analysis is of crucial
part in evaluating whether this kind of business is viable and profitable. We have
conducted a survey within the locality to determine the current, potential, and projected
demand and supply. We were able to gather 100 respondents as our sample
population.

Basing from the result of our survey, we were able to gather information needed for our
analysis of supply and demand. Here are the result of our survey:

1. Do you buy snacks on food carts?


Chart Title

Yes No

Majority or 96 out of 100 are willing to buy snacks on food cart. They say that it
easier, cheaper and faster than going through restaurants. The remaining 14
respondents prefer to eat or buy snacks indoor. One of their main reason is that
they are not fond of foods exposed outside.

2. Are you fond of eating empanada?

Chart Title

Yes No

89 out of 100 respondents are fond of eating empanada. This product will have
different types which includes chicken empanada as our main product. The 89
respondents or 89% of our sample population will be used in determining our
currents and projected demands.

3. How many servings of empanada do you usually eat?


Chart Title

1 piece 2 pieces
3 pieces more than 3

22 respondents usually eat 1 piece of empanada. 39 respondents are satisfied


with 2 pieces. 27 eats 3 pieces and the remaining 12 eat more than 3 pieces.
This result will be used in determining the units or volume of the product
demanded per year.

4. How often do you eat empanada?

Chart Title

daily once a week twice a week once a month when available

13 respondents often eat daily. 21 of them eat once a week. Majority or 42 out of
100 respondents eat twice a week. 11 respondents eat at least once a month
and the remaining eat whenever they have time.

5. How much are you willing to spend in buying one serving of empanada?
Chart Title

25 php and below 30-50 php


above 50 php

26, 67, and 7 respondents are willing to buy empanada at price of 25 php and
below, 30-50 php, and above 50 php respectively.

6. What variances of fillings do you like in your empanada?

Chart Title

chicken smores strawberry jam tuna beef pineapple caramel apple

Since respondents can chose 1 or more of the choices provided, we made use of
percentages to determine the shares of every variance offered to easily
determine the demand of each products. The percentage share of the products
has been included in the Demand schedule.

DEMAND

The demand in our proposed business will determine the sales expected to be
generated. Furthermore this information will be used in determining our cost of sales
and other operational activities and eventually, the determination of net income for
profitability to be evaluated.
Current Demand

Since our business will be the first one in Gattaran, there are no statistics regarding the
demand within the locality about this kind of business. This is one of the reasons why
we have conducted a survey regarding our business. The population of Gattaran from
census as of 2015 is 56,661 and a growth rate of 1.93%. This growth rate is based on
the growth rate in Tuguegarao. We have concluded that this is the most appropriate
growth rate since it is the most populous municipality in Cagayan Valley and we were
not able to gather information regarding that matter. It is the most populous city in the
region. Basing from sample population (respondents) from the survey conducted, 96 out
of 100 residents of Gattaran is willing and able to avail products provided on food carts.
This makes 96% of the total population of Gattaran. 89 out of 100 eats empanada which
includes those that prefer to eat inside. Technically, 96% of the 89% demand of
empanada wants to buy the product on food cart. We may therefore conclude that 85.
44% is the demand of the business being proposed. Frequency is the amount of time (in
days) that customers are willing to spend in the provided services. Frequency used is
the average days that customers spend for the service annually.

Year Population Market Frequency average


Acceptability units annual demand
demanded
2015 56,661 85.44% 105.32 2.41 12287778
2016 57,754.56 85.44% 105.32 2.41 12524932
2017 58,869.22 85.44% 105.32 2.41 12766664

Demand on Products Offered

Our product empanada will be of different variances or flavours. The demand for every
service is determined by multiplying the annual demand with their percentage
contribution that we have determined from our result of the previous survey.

product variances Market Share 2015 2016 2017 2018 2019 2020
chicken 21.33% 2620983.12 2671568.09 2723129.35 2775686 2829256.485 2883861.135
smores 12.89% 1583894.63 1614463.79 1645622.94 1677383 1709756.966 1742755.276
strawberry jam 16.00% 1966044.53 2003989.19 2042666.18 2082090 2122273.969 2163233.857
tuna 16.00% 1966044.53 2003989.19 2042666.18 2082090 2122273.969 2163233.857
beef 16.89% 2075405.76 2115461.09 2156289.49 2197906 2240325.459 2283563.74
pineapple 7.56% 928956.04 946884.89 965159.77 983787.4 1002774.45 1022127.997
caramel apple 9.33% 1146449.72 1168576.20 1191129.72 1214119 1237551.008 1261435.743

100.00% 12287778.32 12524932.44 12766663.64 13013060 13264212.31 13520211.6


Projected Demand

The growth rate of 1.93 in 2015 census will still be use to determine the population in
the years 2018-2020. Our projected annual demand had been computed in the same
manner as the past demand. The frequency computed will still be used. The Projected
Demand in years 2018 to 2020 follows:

Year Population Market Frequency Average Annual


Acceptability Units Demand
Demanded
2018 60,005.40 85.44% 105.32 2.41 13013060

2019 61,163.50 85.44% 105.32 2.41 13264212

2020 62,343.96 85.44% 105.32 2.41 13520212

Projected demand on services to be provided

product variances Market Share 2015 2016 2017 2018 2019 2020
chicken 21.33% 2620983.12 2671568.09 2723129.35 2775686 2829256.485 2883861.135
smores 12.89% 1583894.63 1614463.79 1645622.94 1677383 1709756.966 1742755.276
strawberry jam 16.00% 1966044.53 2003989.19 2042666.18 2082090 2122273.969 2163233.857
tuna 16.00% 1966044.53 2003989.19 2042666.18 2082090 2122273.969 2163233.857
beef 16.89% 2075405.76 2115461.09 2156289.49 2197906 2240325.459 2283563.74
pineapple 7.56% 928956.04 946884.89 965159.77 983787.4 1002774.45 1022127.997
caramel apple 9.33% 1146449.72 1168576.20 1191129.72 1214119 1237551.008 1261435.743

100.00% 12287778.32 12524932.44 12766663.64 13013060 13264212.31 13520211.6

Supply

Determining the supply that is being provided in the locality enable us to determine the
demand that we still need to fill or satisfy.

Since there are no existing businesses offering services which is substantially the same
with the proposed business within the locality and with the same target market. We may
conclude that the demand for this recreation activities is still not satisfied and therefore
no supply.
Demand-Supply Gap

Demand gap is the demand that has not been satisfied by providing the supply. This
simply means that the demand for the commodity is higher than what had been supplied
in the market. As we have learned, the demand for recreational activities (particularly
trampoline, ball pool, and giant slides recreational activities) but there is no existing
market to supply that demand. The demand gap therefore is the projected demand as
follows:

Year Projected Demand Projected Supply Demand Gap


2018 13013060 0 13013060
2019 13264212 0 13264212
2020 13520212 0 13520212

Regarding Potential Demand:

Potential demand are the demands that is expected in the market of certain product or
services. It relates to sales forecasting, a process by which a company attempts to
predict future demand for the coming years. It is determined based on historical
forecasts and other relevant data. Since there is no existing similar business with similar
target market regarding our proposed business, our potential demand is the population
increase. We have constantly used the 1.93 growth rate from 2015 census in
determining our projected demand. We have concluded that our potential demand is the
increase in the localitys population per year.

MARKETING PLAN AND STRATEGIES

For this business, we are to use MARKET FILLING since we are the pioneer to
offer this product in the town. However; to fully target its objectives and to address
threats, such as rising competitions, the proponents propose the following marketing
strategies:

A. Physical Marketing

Empanada Express will have a suitable cart that is delightful and friendly to
customers. Its designs concepts should be instagrammable and pleasing in the eyes of
the customers to satisfy them not only with the best empanada we provide but also with
the design of our empanada cart.
B. Media Marketing

Advertisements through various media should be observed at a reasonable cost


(such as tarpaulins, flyers, signages). Internet marketing is also highly advisable to
connect to wider range of people like posting in the official social page that we are
catering numerous empanadas in the event of seminars, birthdays and etc.

C. Product Marketing

We will be dealer to different cafeterias or restaurant in the town since we have a


full market share as being the only one who provides this product. Giving it to the agent
at the same price, they will also gain from it by adding an additional mark up on sale
price which will then serve as their commission.

SWOT ANALYSIS

STRENGHTS OPPORTUNITIES
Unique and high quality The route provides a good number
empanadas with a variety of of target market.
savory fillings are offered. Easy and affordable supply.
It provides different choices of Provides other income to small
fillings. businesses who will serve as our
Provides for to-go services. agent.
Pioneer to offer empanada in the Setting industry standards and
whole town. gaining economies of scale.
Provides an affordable empanada It is located in the commercial site
at satisfactory cravings. of the town near schools and
Offers new, unique and delicious public market.
tastes and concept.

WEAKNESSES THREATS
Establishment of other food carts
is inevitable
Trends about eating fewer
carbohydrates.
People may choose to patronize
other satisfactory cravings.