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CHAPTER II

MARKETING ASPECT

The marketing aspect is one of the important parts of feasibility study, wherein it shows

the probability of the study. Marketing aspect should be directed towards the goal of the

organization and at the goal of every individual. This should be changing due to the changing

needs and desires of the customers.

This chapter will discuss all the marketing aspects of the cafeteria. The discussion will

include the industry profile, description and uses of the product, consumer behavior, demand

analysis, projected demand, supply analysis, projected supply, demand and supply consolidation,

other market consolidation, competitors, market share, purchases, projected purchases, marketing

strategy, promotional strategy, pricing strategy, cost per unit, selling price and terms of sales.

Industry Profile

Food is a basic necessity. The industry which deals with preparing food items/products

refers to the food service industry. The food service industry is and will always remain in high

demand because of its genre. These industries include restaurants, fast foods, school and hospital

cafeterias, catering operations, food carts and food trucks etc. Restaurants and fast foods mainly

contribute to the food service industry.

Fast food generally refers to the type of restaurants that sell quick, inexpensive take-out

food. During a relatively brief period of time, the fast food industry has helped to transform not

only diet, but also landscape, economy, workforce, and popular culture. The extraordinary
growth of the fast food industry has been obsessed by fundamental changes in society. The

whole experience of buying fast food has become so habitual, that it is now taken for granted,

like brushing your teeth or stopping for a red light.

Restaurants and fast foods are meant for same services except that restaurants offer a

large menu including a variety of cuisines as compared to fast foods, which usually offers a

small menu with quick service. Another difference between a restaurant and fast food is,

restaurants offer meals that are cooked and prepared and is eaten at the premises while fast food

usually is pre-cooked meals or serves meals that are cooked easily. Diners may eat it inside the

store or they can order their food to-go. In fast foods you usually pay before eating unlike full

service restaurants.

Like every other country, the food industry has flourished very well in Philippines.

Filipinos love to eat and thats the reason why you will see a lot of restaurants and fast foods

restaurants scattered in the cities. These restaurants and fast foods can be local or international

food chains. Filipino food and chefs are considered one of the best in the world. It is hardly

surprising that Filipino food is often labeled as somewhat strange (like the balut for example)

but in its own way, its food is a unique mixture of eastern and western cuisines and reflects the

history of Philippines. The Filipino food includes dishes and cooking procedures from China,

Spain, Mexico, United States, and more recently from further abroad. However, what makes

them Filipino is the history and society that introduced and adapted them; the people who turned

them to their tastes and accepted them into their homes and restaurants, and specially the

harmonizing culture that combined them into modern Filipino fare. Some of the popular fast

food chains of Philippines are Jollibee, McDonald, KFC, Chowking, etc. and popular restaurants

being Abe, Chelsea, Fridays, Chilis and a lot more.


Attracting a huge crowd to restaurants or fast foods require more than just good food. Though

important, good food is only a part of the total dining experience. Equally important is believed

to be the way people feel while in the restaurant. This physical and emotional response is a result

of the atmosphere, the total environment to which customers are exposed. The proper

atmosphere can make the food, service and whole dining experience seem better. For that reason

a restaurant or a fast food must take care of the following to please its customers. This includes

checking the cleanliness of the place and freshness of the food, guarded premises, parking area

where people can park, ambiance and landscaping, building design, lighting, and even music.

Description and Uses of the Product

Most people would agree that, like having a good taste, good nutrition food are

important to ones well being, since many hours are spent bearing weight on them. Yet people

frequently buy delicious yet has low-nutrition meals depends on price, or other reasons, and

then keep eating it till they are lost interest, because they just eat the same food many times.

Bad nutrition can be prevented or reduced from buying healthy meals and proper

exercise. Our cafeteria also can protect us from direct contact on germs. Thats why as being

engage in this business, we are offering different meals that are suited to anybody.
Demand Analysis

Consumer Behavior

The cafeterias consumers are those individuals who make food decisions everyday based

on their need and wants. In short, the target market of the cafeteria is everyone because everyone

needs to eat. The researchers need to consider the factors that affect or contribute to the buying

behavior in order to satisfy the customers needs and wants and also to help them identify the

best marketing strategy to promote the business.

The study of consumer behavior plays an importance role in marketing which need to

study in how individuals, groups and organizations select, buy, use and dispose of goods,

services, idea or experiences to satisfy the needs and wants of the consumers. Factors that may

influence consumer purchase decisions are the cultural influences, social influences, personal

factors and psychological factors. Those of the factors are vital when using them to apply as the

marketing strategies. It affects peoples life in a way that their perspectives in my buying habits

and in decision making were changed. Also, consumer behavior shows how consumers are

motivated in buying preferences and how to come up with a better decision strategies differ

between products that differ in their level of importance or interest. As a result, this impact will

surely bring about certain changes in behaviors based on positive or negative aspects of learning,

which more explicitly, positive or negative experiences in a situation that they will encounter in

the market place.


Demand Analysis

Base on the summary of our survey results on year 2013, we prefer that 72.27% of the total

population of U.N Avenue purchase Silogs Meal, while 61.80% buy Lugaw Meal(egg, tokwa,

tuwalya, and so on) and 89.96% buy beverages.

Population % Consumers

Silogs Meal 32,634 72.27% 23,583

Lugaw Meal 32,634 61.80% 20,169

Drinks 32,634 89.97% 29,362

Projected Demand

Projected demand is the activity of estimating the quantity of a product or service that consumer

will purchase. Demand forecasting may be used in making pricing decisions, in assessing future

capacity requirements or in making decisions or whether to enter a new market.


Table 2.1

GROWTH RATE Total(total no. of


YEAR POPULATION (15% of the total number of population plus
population) Growth rate)

2013 32,634 4,895 37,529

2014 35,578 5,336 40,914

2015 38,960 5,884 44,844

2016 42,152 6,322 48,474

2017 45,314 6,797 52,111

Table 2.2

Supply Analysis

Projected Supply

Demand and Supply Soliditation

Competitors

Any person or entity which is a rival against another. In business, a company in the same
industry or a similar industry or a similar industry which offer a similar product or service. The
presence of one or more competitors can deduce the prices of goods and services as the
companies attempt to gain a larger market share. Competition also requires companies to become
more efficient in order to reduce costs.

Direct Competitors

Lilangs canteen

Eatery express

Allens Buffet

Indirect Competitors

McDonalds

Jollibee

Chowking

Market Share

Purchases

Projected Purchases

Marketing Strategy / Marketing Planning / Marketing Segmentation


Marketing Strategy is an organization's strategy that combines all of its marketing goals

into one comprehensive plan. A good marketing strategy should be drawn from market research

and focus on the right product mix in order to achieve the maximum profit potential and sustain

the business. The marketing strategy is the foundation of a marketing plan.

Promotional Activity include all the activities carried out by an organization for

promoting its brand. Promotional activities include advertising on television, radio, websites etc,

doing personal selling i.e. Selling the products through sales person or door to door selling etc.

An organization can also promote its products through public relations i.e by use of newspapers,

media. It can sponsor events to become prominent in the eyes of the customers. The ultimate

goal of any promotional activity is to increase the sales of its products or to create brand

awareness among consumers.

Pricing Strategy. Starting a new business or launching a new product or service requires

detailed thought and planning. A critical piece of that planning is deciding how you should price

your products and services. The pricing strategy you choose dramatically impacts the profit

margins of your business, and determine the pace at which your business can grow. Our firm will

be using a penetration pricing strategy.

A penetration pricing strategy is used as a loyalty-building or market-entry tool. The

penetration pricing strategy offers a high-quality product at a much lower than expected price.

This combination helps the business enter a new market even when strong competitors exist, and

it builds loyalty with new customers from the beginning. The penetration strategy can
dramatically increase the lifetime value of customers, because they're "hooked" with the

outstanding first product offering and--assuming future products are just as high quality--they are

more willing to buy additional products from the company long into the future.

Cost Per Unit

Selling Price

Terms of Sale