Chapter II

MARKETING ASPECT

Sampaguita (Jasminum sambac) being a symbol of our country, as our national

flower, contributed much to the low – income earners in the social system. The white,
dainty flowers with soothing fresh scent are primarily strung together into garlands, which
find their way as religious adornments in churches and homes, as decorative ornaments
in wedding ceremonies and vigils for the beloved dead, welcome offerings to strangers
and visitors, as well as tokens of appreciation and accomplishment for new graduates.
(De Guzman, 2002). Hence, these flowers have proved its essential role in the horticultural
industry, being a mainstream source of livelihood, the competition has grown into a
complex setting.
In line with this, the Marketing aspect has deemed to be an indispensable method
of winning the market share through persuasive and pleasing promotional activities with
the consideration also of the key players in the market and the supply and demand figures
that would affect the whole company operations toward achieving its success and
favorable results.

Target Market

Reyna Senyorita Sampaguita Inc., just like other horticultural entities, would like to
undergo a marketing channel, as shown in Figure 2.1, through an indirect method of
flowing supply of Sampaguita flowers towards the final consumers. Therefore, the
proponents set the primary target market to be vendors, garland making – contractors,
garland makers, and garland sellers/peddlers who directly purchase their unprocessed
Sampaguita buds (filled in 1 Liter – Can of Car Oil). Studies shows, which conducted by
Constancio De Guzman (2002) and Fernando Sanchez, et al. (2011), that there are
enumerated and defined key players playing in the market of Sampaguita these are the
growers, that begin the point of the flow, going to the final consumers who use the
sampaguita buds in various ways. Therefore, as follows:
1. Producers/Producer – Traders. Individual who grow and sell jasmine regularly.
This is the starting point and the end-point of marketing the jasmine by producers.
They sell their produce right in the farm because traders go there to pick up the
harvested jasmine buds. On the other hand, producer – traders harvest their
 produce and bring them to assembly markets (Sanchez, Mojica & Caroline, 2011),
where this classification is what Senorita Sampaguita Inc. together with its
proponents plans to engage in.
2. Vendor. This is treated as supplier of unprocessed Sampaguita buds, who
distributes the products in to two or more dealers which increase the flow of the
Sampaguita in the central place of trade. As the case maybe, due to high volume
of consumers, the supplier also faces so many transactions, in which with the help
of the vendor the numerous Sampaguita buyers are being accommodated.
3. Garland-making contractor. The garland-making contractor (nagpapatuhog)
buys all the raw materials, from either a Producer or a vendor, needed for making
sampaguita garlands and hires garland makers. The contractor then delivers the
garlands to different parts of Metro Manila, particularly those near major churches
such as Baclaran and Quiapo. Delivery is normally done every day. Some,
however, find it more profitable to transport the garlands every Wednesday, Friday
and Sunday to take advantage of the big number of churchgoers during this period.
Wednesdays and Fridays are novena days for the devotees of the Mother of
Perpetual Help in Baclaran Church and the Black Nazarene in Quiapo Church,
respectively. (De Guzman, 2000). The usual buyer of the products made were sold
to garland peddlers/retailers or garland makers and other garland making
contractors.
4. Garland maker. The garland makers (tagatuhog) also buy all their raw materials,
from either a Producer or a vendor, needed for making sampaguita garlands, but
the difference that make them distinct from garland making contractors is that they
are the one who makes their leis or garland. They string together the sampaguita
buds to form garlands or leis. Garlands are classified according to the number of
floral buds per abaca string: de dos for 2 buds, de cuatro for 4, de dies for 10, and
so on and sell this finished product to Sampaguita garland peddlers/retailers or
garland making contractors and/or other garland makers.
5. Garland maker and peddler/retailers. This type of key player plays an important
role in the distribution chain of the Sampaguita business because they serve as
the final link of the Sampaguita farmer to the consumer, they buy their own raw
materials needed from either a Producer or a vendor. In other cases, they are
contracting other garland making contractor or garland makers to or resorts to
make their own garland to earn most of the profit. Almost all the garlands produced
 in San Pedro are brought to Metro Manila by the contractor, who distributes them
to garland peddlers.
6. Company processing Sampaguita. These entities buy raw materials of
Sampaguita then convert them to other products such as flour and oil that can be
traded to the market both in local and global settings.
7. Consumer. This is the destination of Sampaguita products both the buds made
into garlands and the ones converted into another product.

Sampaguita plant delivered as agreed upon with the company Company

Sampaguita Buds processing
Garland
Sampaguita
Making
Contract
or Garland
Final
Reyna Peddler/
Consumer
Senyorita Vendor Retailer
Sampaguita
Inc. LEGEND:
Garland Direct flow to
Sampaguita Buds Maker Target Market.
Indirect flow to
Sampaguita Buds Target Market
DISTRIBUTION CHANNEL

Figure 2.1 Flow of Sampaguita Products to the Final Consumers.

The figure exhibits the flow of the Sampaguita through the market until it will end
up to the consumers hands, the participants involved in flowing the Sampaguita products
is called the Key players in the market. Therefore, the Sampaguita products will first start
its flow in the plantation which is in Reyna Senyorita Sampaguita Inc. after picking the
buds and prepare its packaging, it will be delivered to its Vendors, Garland Making
Contractor and the Garland Maker itself and post – delivery activities will begin between
the key players. On the other hand, after 5 years of operations to further expand the
production and earn more profit, Reyna Senyorita Sampaguita Inc. will also begin to
deliver the Sampaguita flowers to company processing Sampaguita, such as Universal
Rubina Company who converts the flowers into other form of products and the process
will continue either way until it will reach its final consumers.
 The target market that the proponents chose will be from consumers of the
Province of Pampanga and nearby places such as Tarlac, Bulacan and Manila. Also,
Reyna Senyorita Sampaguita Inc. is aiming to further bring the products to other parts of
the Philippines and the world as the company continue its progress. Because of the useful
characteristics of the Sampaguita plants, the proponents are also looking forward into
supplying Sampaguita to companies, such as Universal Rubina Company, that process
the flowers into other form of products.
Due to uncertainties that can be brought by negotiating with the target market
mentioned, the proponents have agreed that each party negotiating will be required to
sign a sales agreement with Reyna Senyorita Sampaguita Inc. In order for the company
to establish a purchase commitment, which is a good method of establishing business –
customer relationship and assure revenue. Sample Sales Agreement is provided in the
last part of this study in the Appendix Section.

Data Gathering Results

The proponents floated questionnaires in some Sampaguita central markets

existing in Pampanga, which can be located in Golangco, San Antonio, Lubao, Pampanga,
Brgy. San Roque Dau, Lubao, Pampanga and other areas of Florida Blanca, Pampanga.
This place is known to be the center market for vendors, garland making contractors,
garland makers and garland makers and peddlers who buy and sell Sampaguita products.
The mentioned place, can help the researchers to determine the current demand and
supply, and producer’s problems and attributes that the target market is experiencing. This
therefore would be used to make relevant forecasts and estimates on operations such as
the projected supply and demand analysis.
Being the primary target market of Reyna Senyorita Sampaguita Inc., the
researchers have determined the percentage share of the key players participating in the
flow of the Sampaguita business. As to commence the data gathering the proponents
decided to reflect Figure 2.2 which shows the figures both in number and percentage
based on 50 samples.
 Garland Maker
and Peddlers Vendors
22% 30%

Garland Makers
Garland Making
24%
Contractors
24%

Figure 2.2 Percentage of Each Key Players in the Total Target Market

The figure was computed by getting the total number of Key Players present and
then dividing each total participant from the total target market to get their respective
percentages. According to the above results the figure shows that present dominating key
players of the target market are the vendors who plays a thirty percent (30%) participation
which is considered as the major participants who get and distribute most of the
Sampaguita buds to other key players of the Sampaguita market followed by the Garland
making contractor with twenty-four percent (24%) share, Garland makers of twenty – four
percent (24%) share also, and Garland Peddlers with four percent (22%) share.

Due to the growing demand for Sampaguita, many key players coming from
different areas in Pampanga and some other parts of the country are having hard time of
obtaining supplies of Sampaguita. As a result, there is a decrease in the number of
Sampaguita buds and products to be sold. It will be better if enough supply is present to
sustain their business. Therefore, the proponents determined the key players that are
willing to obtain their supply from a new supplier which will be Reyna Senyorita
Sampaguita Inc.

Methodology is must be used in order to determine how the business should

perform. Through SWOT analysis the company will have a basis of developing strategies
to keep the company alive in the long-run. The respondents who are currently involve in
the Sampaguita industry. The respondents were asked what particular attributes that they
want from a potential supplier and what are the common problems encountered by them
as consumers with their present suppliers, in order for Reyna Senyorita Sampaguita Inc.
to adjust and to develop strategy to maintain and obtain its target market and to expand
its market share. Therefore, with all the technicalities that are involved in planting and
establishing a Sampaguita farm the proponents successfully gathered the information
needed and are more confident to offer better services and qualities to its anticipated
target market, to become a major participant in the Sampaguita industry.
Following this proposition, the proponents include in its questionnaires the
enumerated problems and attributes being encountered by many key players in
Sampaguita industry, which was adopted from studies conducted by C. Deguzman (2002)
and F. Sanchez, et. al., (2011) as follows:

Table 2.1 TARGET EXPECTED ATTRIBUTES

Ranking Attributes
1 Low Price
2 High Quality
3 Discounts
4 Quantity
5 Immediate Delivery of Supplies

It can be implied through the table that the most pleasing attribute that buyers
anticipate from a supplier is that it will sell its product in low price. This will be a good
attribute if high quality will come with low price as respondents would say, thus leading to
the third ranking of high quantity demand will be beneficial and a help in order to assist
other key players in their production. The fourth rank follows to be the immediate delivery
of supplies for efficient and timely process, and the least to be in the ranking will be the
discounts.
 Table 2.2 TARGET MARKET ENCOUNTERED PROBLEMS

Ranking Problems Encountered

1 Lack of Supply
2 High Price
3 Poor Quality
4 Remote Supplier
5 Breach of Contract

Problems that are encountered from Producers/Suppliers is primarily concerned with

the lack of supply this is due to the small number of Producer/suppliers who produce a small
quantity of Sampaguita buds, factors contributing to this problem is because the Sampaguita
blooms flowers depending on the season from March to September is the Peak Season but
from October to February is the lean, aside from the said season, as the growing number of
the population continues demand also rises that the suppliers cannot accommodate the
demand anymore, which is an indication of shortage of supplies where the second problem
comes in price charges are so high that small time business entities cant purchase for more
flowers anymore. Poor quality is next in line due to seasonal phenomenon that Sampaguita
flowers encounter. The fourth problem is the remote supplier which aside from Pampanga,
Bulacan, Quezon and Laguna are the next location for supplies. The fifth condition is breach
of contracts which is seldom experience where some suppliers tend to not follow what has
been agreed upon and stipulated in the arrangements.

Since the selling of Sampaguita buds is made daily in average as the fifty (50)
respondents as they answered, the data results show:
Table 2.3 AVERAGE ANNUAL DEMAND (1L Cans of Car Oil)
A. VENDOR (15)
Peak Season (March - September)

Daily Average
Range of Demand Annual
Mid- Sample Days in a
Demand (1L - (1L - Can Demand
Point Respondents Year
Can of Car Oil) of Car (1L - Can
Oil) of Car Oil)
Between 5 -30 17.5 6 105 360 37,800
Between 31 - 55 43 0 0 360 0
Between 56 - 80 68 1 68 360 24,480

Between 81 - 100 90.5 1 90.5 360 32,580

101 and above 50 7 350 360 126,000

Total 15 613.5 360 220,860
Average Annual
Demand per 14,724
respondent
Average Daily
41
Demand

Because of the various key players participating being the target market of the
Reyna Senyorita Sampaguita Inc. the proponents decided to present the annual demand
of each key players. Also, due to seasonal production the proponents sorted the data
based on Peak and Lean season which later aggregated to get the total average annual
and daily demand.

The average annual demand for vendor during the Peak Season which is in
between the months of March to September, was computed by getting the midpoint of the
ranges of usual supply sold in the market, then was multiplied to demand per respondents
answered of what particular range they fall under and multiplied by days in a year which
is 360 days in a year to arrive at total projected demand per year. Subsequently, the total
annual demand divided by the total number of respondents to arrive at the average annual
demand. Lastly, the average annual demand for a year will be divided by the total number
of days in a year to get the average daily demand.
Lean Season (October to February)

Daily Average
Range of Demand Annual
Demand (1L - Mid- Sample Days in a
(1L - Can Demand
Can of Car Oil) Point Respondents Year
of Car (1L - Can
Oil) of Car Oil)
Between 5 -30 17.5 13 227.5 360 81,900
Between 31 - 55 43 2 86 360 30,960
Between 56 - 80 68 0 0 360 0
Between 81 - 100 90.5 0 0 360 0
101 and above 50 0 0 360 0
Total 15 313.5 360 112,860
Average Annual
Demand per 7,524
respondent
Average Daily
21
Demand

The average annual demand for vendor during the Lean Period which is in
between the months of October to February, was computed by getting the midpoint of the
ranges of usual supply sold in the market, then was multiplied to demand per respondents
answered of what particular range they fall under and multiplied by days in a year which
is 360 days in a year to arrive at total projected demand per year. Subsequently, the total
annual demand divided by the total number of respondents to arrive at the average annual
demand. Lastly, the average annual demand for a year will be divided by the total number
of days in a year to get the average daily demand.
Total Average Annual Demand for VENDORS

Average Average
Range of Daily
Frequency Annual
Demand (1L - Mid- Demand Days in a
According Demand
Can of Car Oil) Point (1L - Can Year
to 2 (1L - Can of
of Car Oil)
Seasons Car Oil)
Between 5 -30 17.5 9.5 166.25 360 59,850
Between 31 - 55 43 1 43 360 15,480
Between 56 - 80 68 0.5 34 360 12,240
Between 81 - 100 90.5 0.5 45.25 360 16,290
101 and above 50 3.5 175 360 63,000
Total 15 463.5 360 166,860
Average Annual
Demand per 11,124
respondent
Average Daily
31
Demand

The average annual demand for vendor was computed by getting the midpoint of
the ranges of usual supply sold in the market, then was multiplied to demand per
respondents answered of what particular range they fall under in average and multiplied
by days in a year which is 360 days in a year to arrive at total projected demand per year.
Subsequently, the total annual demand divided by the total number of respondents to
arrive at the average annual demand. Lastly, the average annual demand for a year will
be divided by the total number of days in a year to get the average daily demand.
 B. GARLAND - MAKING CONTRACTOR
Peak Season (March to September)

Daily Average
Range of
Demand Annual
Demand (1L - Mid- Sample Days in a
(1L - Can Demand
Can of Car Oil) Point Respondents Year
of Car (1L - Can
Oil) of Car Oil)
Between 5 -30 17.5 0 0 360 0
Between 31 - 55 43 5 215 360 77,400
Between 56 - 80 68 3 204 360 73,440
Between 81 - 100 90.5 4 362 360 130,320
101 and above 50 0 0 360 0
Total 12 781 360 281,160
Average Annual
Demand per 23,430
respondent
Average Daily
65
Demand

The average annual demand for garland making – contractors during the Peak
Season which is in between the months of March to September. The respondents ensured
that they get their supply from producer/supplier, was computed by getting the midpoint of
the ranges of usual supply sold in the market, then was multiplied to demand per
respondents answered of what particular range they fall under and multiplied by days in a
year which is 360 days in a year to arrive at total projected demand per year.
Subsequently, the total annual demand divided by the total number of respondents to
arrive at the average annual demand. Lastly, the average annual demand for a year will
be divided by the total number of days in a year to get the average daily demand.
Lean Season (October to February)

Daily Average
Range of Demand Annual
Demand (1L - Mid- Sample Days in a
(1L - Can Demand
Can of Car Oil) Point Respondents Year
of Car (1L - Can
Oil) of Car Oil)
Between 5 -30 17.5 12 210 360 75,600
Between 31 - 55 43 0 0 360 0
Between 56 - 80 68 0 0 360 0
Between 81 - 100 90.5 0 0 360 0
101 and above 50 0 0 360 0
Total 12 210 360 75,600
Average Annual
Demand per 6,300
respondent
Average Daily
18
Demand

The average annual demand for garland making – contractors during the Lean
Season which is in between the months of October to February. The respondents ensured
that they get their supply from producer/supplier, was computed by getting the midpoint of
the ranges of usual supply sold in the market, then was multiplied to demand per
respondents answered of what particular range they fall under and multiplied by days in a
year which is 360 days in a year to arrive at total projected demand per year.
Subsequently, the total annual demand divided by the total number of respondents to
arrive at the average annual demand. Lastly, the average annual demand for a year will
be divided by the total number of days in a year to get the average daily demand.
Total Average Annual Demand for Garland Making – Contractors

Average Average
Range of Daily
Frequency Annual
Demand (1L - Mid- Demand Days in a
According Demand
Can of Car Oil) Point (1L - Can Year
to 2 (1L - Can of
of Car Oil)
Seasons Car Oil)
Between 5 -30 17.5 6 105 360 37,800
Between 31 - 55 43 2.5 107.5 360 38,700
Between 56 - 80 68 1.5 102 360 36,720
Between 81 - 100 90.5 2 181 360 65,160
101 and above 50 0 0 360 0
Total 12 495.5 360 178,380
Average Annual
Demand per 14,865
respondent
Average Daily
41
Demand

The average annual demand for garland – making contractors was computed by getting
the midpoint of the ranges of usual supply sold in the market, then was multiplied to
demand per respondents answered of what particular range they fall under in average and
multiplied by days in a year which is 360 days in a year to arrive at total projected demand
per year Subsequently, the total annual demand divided by the total number of
respondents to arrive at the average annual demand. Lastly, the average annual demand
for a year will be divided by the total number of days in a year to get the average daily
demand.
 C. GARLAND MAKER
Peak Season (March to September)

Daily Average
Range of
Demand Annual
Demand (1L - Mid- Sample Days in a
(1L - Can Demand
Can of Car Oil) Point Respondents Year
of Car (1L - Can
Oil) of Car Oil)
Between 5 -30 17.5 0 0 360 0
Between 31 - 55 43 4 172 360 61,920
Between 56 - 80 68 3 204 360 73,440
Between 81 - 100 90.5 2 181 360 65,160
101 and above 50 3 150 360 54,000
Total 12 707 360 254,520
Average Annual
Demand per 21,210
respondent
Average Daily
59
Demand

The average annual demand for garland makers during the Peak Season which is
in between the months of March to September. The respondents ensured that they get
their supply from producer/supplier, was computed by getting the midpoint of the ranges
of usual supply sold in the market, then was multiplied to demand per respondents
answered of what particular range they fall under and multiplied by days in a year which
is 360 days in a year to arrive at total projected demand per year. Subsequently, the total
annual demand divided by the total number of respondents to arrive at the average annual
demand. Lastly, the average annual demand for a year will be divided by the total number
of days in a year to get the average daily demand.
Lean Season (October to February)

Average
Range of Demand Daily
Annual
(1L - Can of Car Mid- Sample Demand Days in a
Demand
Oil) Point Respondents (1L - Can Year
(1L - Can
of Car Oil)
of Car Oil)
Between 5 -30 17.5 11 192.5 360 69,300
Between 31 - 55 43 0 0 360 0
Between 56 - 80 68 1 68 360 24,480
Between 81 - 100 90.5 0 0 360 0
101 and above 50 0 0 360 0
Total 12 260.5 360 93,780
Average Annual
Demand per 7,815
respondent
Average Daily
22
Demand

The average annual demand for garland makers during the Lean Season which is
in between the months of October to February. The respondents ensured that they get
their supply from producer/supplier, was computed by getting the midpoint of the ranges
of usual supply sold in the market, then was multiplied to demand per respondents
answered of what particular range they fall under and multiplied by days in a year which
is 360 days in a year to arrive at total projected demand per year. Subsequently, the total
annual demand divided by the total number of respondents to arrive at the average annual
demand. Lastly, the average annual demand for a year will be divided by the total number
of days in a year to get the average daily demand.
Total Average Annual Demand for Garland Makers

Average Average
Daily
Range of Frequency Days Annual
Mid- Demand
Demand (1L - According in a Demand (1L -
Point (1L - Can of
Can of Car Oil) to 2 Year Can of Car
Car Oil)
Seasons Oil)
Between 5 -30 17.5 5.5 96.25 360 34,650
Between 31 - 55 43 2 86 360 30,960
Between 56 - 80 68 2 136 360 48,960
Between 81 - 100 90.5 1 90.5 360 32,580
101 and above 50 1.5 75 360 27,000
Total 12 483.75 360 174,150
Average Annual
Demand per 14,513
respondent
Average Daily
40
Demand

The average annual demand for garland maker was computed by getting the
midpoint of the ranges of usual supply sold in the market, then was multiplied to demand
per respondents answered of what particular range they fall under in average and
multiplied by days in a year which is 360 days in a year to arrive at total projected demand
per year. Subsequently, the total annual demand divided by the total number of
respondents to arrive at the average annual demand. Lastly, the average annual demand
for a year will be divided by the total number of days in a year to get the average daily
demand.
 D. GARLAND MAKERS AND PEDDLERS
Peak Season (March to September)

Average
Daily
Range of Demand Annual
Mid- Sample Demand Days in a
(1L - Can of Car Demand
Point Respondents (1L - Can Year
Oil) (1L - Can
of Car Oil)
of Car Oil)
Between 5 -30 17.5 12 210 360 75,600
Between 31 - 55 43 0 0 360 0
Between 56 - 80 68 0 0 360 0
Between 81 - 100 90.5 0 0 360 0
101 and above 50 0 0 360 0
Total 12 210 360 75,600
Average Annual
Demand per 6,300
respondent
Average Daily
18
Demand

The average annual demand for garland maker and peddlers during the Peak
Season which is in between the months of March to September. The respondents ensured
that they get their supply from producer/supplier, was computed by getting the midpoint of
the ranges of usual supply sold in the market, then was multiplied to demand per
respondents answered of what particular range they fall under and multiplied by days in a
year which is 360 days in a year to arrive at total projected demand per year.
Subsequently, the total annual demand divided by the total number of respondents to
arrive at the average annual demand. Lastly, the average annual demand for a year will
be divided by the total number of days in a year to get the average daily demand.
Lean Season (October - February)

Average
Range of Daily
Annual
Demand (1L - Mid- Sample Demand Days in a
Demand
Can of Car Oil) Point Respondents (1L - Can Year
(1L - Can
of Car Oil)
of Car Oil)
Between 5 -30 17.5 11 192.5 360 69,300
Between 31 - 55 43 0 0 360 0
Between 56 - 80 68 0 0 360 0
Between 81 - 100 90.5 0 0 360 0
101 and above 50 0 0 360 0
Total 11 192.5 360 69,300
Average Annual
Demand per 6,300
respondent
Average Daily
18
Demand

The average annual demand for garland maker and peddlers during the Lean
Season which is in between the months of October to February. The respondents ensured
that they get their supply from producer/supplier, was computed by getting the midpoint of
the ranges of usual supply sold in the market, then was multiplied to demand per
respondents answered of what particular range they fall under and multiplied by days in a
year which is 360 days in a year to arrive at total projected demand per year.
Subsequently, the total annual demand divided by the total number of respondents to
arrive at the average annual demand. Lastly, the average annual demand for a year will
be divided by the total number of days in a year to get the average daily demand.
Total Average Annual Demand for Garland Maker and Peddlers

Average Average
Range of Daily
Frequency Annual
Demand (1L - Mid- Demand Days in a
According Demand
Can of Car Oil) Point (1L - Can Year
to 2 (1L - Can of
of Car Oil)
Seasons Car Oil)
Between 5 -30 17.5 11.5 201.25 360 72,450
Between 31 - 55 43 0 0 360 0
Between 56 - 80 68 0 0 360 0
Between 81 - 100 90.5 0 0 360 0
101 and above 50 0 0 360 0
Total 11.5 201.25 360 72,450
Average Annual
Demand per 6,300
respondent
Average Daily
18
Demand

The average annual demand for garland maker and peddlers was computed by
getting the midpoint of the ranges of usual supply sold in the market, then was multiplied
to demand per respondents answered of what particular range they fall under in average
and multiplied by days in a year which is 360 days in a year to arrive at total projected
demand per year. Subsequently, the total annual demand divided by the total number of
respondents to arrive at the average annual demand. Lastly, the average annual demand
for a year will be divided by the total number of days in a year to get the average daily
demand.
Table 2.4 TOTAL AVERAGE ANNUAL DEMAND OF ALL KEY PLAYERS

Average Annual Demand

Sampaguita Key Players Sample Respondents
1L - Can of Car Oil
Vendor 15 11,124
Garland Makers 12 14,865
Garland Making Contractors 12 14,513
Garland Makers and
11 6,300
Peddlers
Total 50 46,802

To have a broad view of how high the demand is the researchers decided to
aggregate the amount of average daily demand that is expected to have as shown in the
sub-table E. The Total average annual demand of all the key players was taken by adding
all sub-table A, B, C and D.

In order for the proponents to determine the how the trend of demand incrementally
increase, the researchers asked the key players on how they will compare their previous
and currents sales of 1L – Cans of Car Oil, which is shown in table 2.3

Table 2.5 AVERAGE ANNUAL INCREASE IN DEMAND

A. VENDOR (15)

Mid- Sample Annual

Range
Point Respondents Increase
Between 1 - 5% 3% 4 12%
Between 6 - 9% 8% 4 30%
Between 10 - 14% 12% 5 60%
Between 14 - 19% 17% 2 33%
More than 20% 20% 0 0%
Total 15 135%
Average Annual Increase in
9.00%
Demand

Because of the various key players participating being the target market of the
Reyna Senyorita Sampaguita Inc. the proponents decided to present the annual demand
of each key players.
 As shown in the table, the annual increase in demand for vendors where based in
the ranges made by the researchers inquired from other studies of how increase in
demand is determined which is by an annual of five percent (5%) increase and computed
their median to be multiplied by the number of respondents experiencing the increase and
adding them all and divide by the total number of respondents which is fifteen (15) in the
case of vendors to get the average annual increase in demand.

B. GARLAND MAKING CONTRACTOR (12)

Mid- Sample Annual

Range
Point Respondents Increase
Between 1 - 5% 3% 6 18%
Between 6 - 9% 7.5% 3 23%
Between 10 - 14% 12% 2 24%
Between 14 - 19% 17% 0 0%
More than 20% 20% 1 20%
Total 12 85%
Average Annual Increase in
7.04%
Demand

As shown in the table, the annual increase in demand for garland making –
contractors, which was ensured that they get their supply from producer/supplier, where
based in the ranges made by the researchers inquired from other studies of how increase
in demand is determined which is by an annual of five percent (5%) increase and
computed their median to be multiplied by the number of respondents experiencing the
increase and adding them all and divide by the total number of respondents which is twelve
(12) in the case of garland making contractors to get the average annual increase in
demand.
C. GARLAND MAKER (12)

Mid- Sample Annual

Range
Point Respondents Increase
Between 1 - 5% 3% 7 21%
Between 6 - 9% 7.5% 3 23%
Between 10 - 14% 12% 2 24%
Between 14 - 19% 17% 0 0%
More than 20% 20% 0 0%
Total 12 68%
Average Annual Increase in
5.63%
Demand

As shown in the table, the annual increase in demand for garland makers, which
was ensured that they get their supply from producer/supplier, where based in the ranges
made by the researchers inquired from other studies of how increase in demand is
determined which is by an annual of five percent (5%) increase and computed their median
to be multiplied by the number of respondents experiencing the increase and adding them
all and divide by the total number of respondents which is twelve (12) in the case of garland
makers to get the average annual increase in demand.

D. GARLAND MAKER AND PEDDLER (11)

Sample Annual
Range Mid-Point
Respondents Increase
Between 1 - 5% 3% 8 24%
Between 6 - 9% 7.5% 2 15%
Between 10 - 14% 12% 1 12%
Between 14 - 19% 17% 0 0%
More than 20% 20% 0 0%
Total 11 51%

Average Annual Increase in

4.64%
Demand

As shown in the table, the annual increase in demand for garland makers, which
was ensured that they get their supply from producer/supplier, where based in the ranges
made by the researchers inquired from other studies of how increase in demand is
determined, which is by an annual of five percent (5%) increase and computed their
median to be multiplied by the number of respondents experiencing the increase and
adding them all and divide by the total number of respondents which is eleven (11) in the
case of garland maker/peddlers to get the average annual increase in demand.

Table 2.6 TOTAL AVERAGE ANNUAL INCREASE IN DEMAND

Percentage
Average
Share of Average
Annual
each Key Annual
Sample Increase in
Sampaguita Key Players Players in Increase
Respondents Demand
the whole in
Based on
target Demand
Key Players
Market
Vendor 15 9.00% 30% 2.70%
Garland Makers 12 7.04% 24% 1.69%
Garland Making
12 5.63% 24% 1.35%
Contractors
Garland Makers and
11 4.64% 22% 1.02%
Peddlers
Total 50 100% 6.76%

The Total average annual increase in demand of all the key players was taken by
adding all identified increase in demand by each key player which then was multiplied with
their percentage share in the total sample that the researchers included in the study to
determine each percentage share as a component of the total average annual increase in
demand.

Projected Demand Analysis

It is important to analyze the projected demand in order to estimate the production

that the company should produce. This is a method of meeting the consumers need in the
future when the company begins its operations. Hence, the respondents have asked the
following respondents regarding the consumers demand on the part of the distribution
process that they made after obtaining their supplies as shown in table 2.7.
Table 2.7 KEY PLAYER'S PROJECTED DEMAND
A. VENDOR

Total Number of Key Demand (1L - Can of

Average Annual Demand
Players Car Oil)

15 10,824 162,360

Projected Average 100% +

Projected Demand
Year Demand (1L - Annual Annual
(1L - Can of Car Oil)
Can of Car Oil) Increase Increase

2019 162,360.00
2020 162,360.00 6.76% 106.76% 173,335.54
2021 173,335.54 6.76% 106.76% 185,053.02
2022 185,053.02 6.76% 106.76% 197,562.60
2023 197,562.60 6.76% 106.76% 210,917.83
2024 210,917.83 6.76% 106.76% 225,175.88
2025 225,175.88 6.76% 106.76% 240,397.77
2026 240,397.77 6.76% 106.76% 256,648.66
2027 256,648.66 6.76% 106.76% 273,998.11
2028 273,998.11 6.76% 106.76% 292,520.38
2029 292,520.38 6.76% 106.76% 312,294.76

The table shows the projected demand that the target market is going to need, the
computation was from the previous table presented which is the demand that the
proponents have gathered multiplied with the annual increase of demand in percentage
of the previous year’s demand to get the increased volume sold by the vendors to arrive
at the next year’s base demand.
B. GARLAND MAKING CONTRACTORS

Total Number of Key Demand (1L - Can

Average Annual Demand
Players of Car Oil)

12 13,448 161,370

Projected Average 100% + Projected Demand

Year Demand (1L - Annual Annual (1L - Can of Car
Can of Car Oil) Increase Increase Oil)

2019 161,370.00
2020 161,370.00 6.76% 106.76% 172,278.61
2021 172,278.61 6.76% 106.76% 183,924.65
2022 183,924.65 6.76% 106.76% 196,357.95
2023 196,357.95 6.76% 106.76% 209,631.75
2024 209,631.75 6.76% 106.76% 223,802.86
2025 223,802.86 6.76% 106.76% 238,931.93
2026 238,931.93 6.76% 106.76% 255,083.73
2027 255,083.73 6.76% 106.76% 272,327.39
2028 272,327.39 6.76% 106.76% 290,736.72
2029 290,736.72 6.76% 106.76% 310,390.52

The table shows the projected demand that the target market is going to need, the
computation was from the previous table presented which is the demand that the
proponents have gathered multiplied with the annual increase of demand in percentage
of the previous year’s demand to get the increased volume sold by the garland making –
contractors, which was ensured that they get their supply from producer/supplier, to arrive
at the next year’s base demand.
C. GARLAND MAKERS

Total Number of Key Demand (1L - Can

Average Annual Demand
Players of Car Oil)

12 14,513 174,150

Projected Demand Average 100% + Projected Demand

Year (1L - Can of Car Annual Annual (1L - Can of Car
Oil) Increase Increase Oil)

2019 174,150.00
2020 174,150.00 6.76% 106.76% 185,922.54
2021 185,922.54 6.76% 106.76% 198,490.90
2022 198,490.90 6.76% 106.76% 211,908.89
2023 211,908.89 6.76% 106.76% 226,233.93
2024 226,233.93 6.76% 106.76% 241,527.34
2025 241,527.34 6.76% 106.76% 257,854.59
2026 257,854.59 6.76% 106.76% 275,285.56
2027 275,285.56 6.76% 106.76% 293,894.87
2028 293,894.87 6.76% 106.76% 313,762.16
2029 313,762.16 6.76% 106.76% 334,972.48

The table shows the projected demand that the target market is going to need, the
computation was from the previous table presented which is the demand that the
proponents have gathered multiplied with the annual increase of demand in percentage
of the previous year’s demand to get the increased volume sold by the garland makers,
which was ensured that they get their supply from producer/supplier, to arrive at the next
year’s base demand.
D. GARLAND MAKERS AND PEDDLERS

Total Number of Key Average Annual Demand (1L - Can of Car

Players Demand Oil)

11 6,300 69,300

Projected Demand Average 100% + Projected Demand

Year (1L - Can of Car Annual Annual (1L - Can of Car
Oil) Increase Increase Oil)

2019 69,300.00
2020 69,300.00 6.76% 106.76% 73,984.68
2021 73,984.68 6.76% 106.76% 78,986.04
2022 78,986.04 6.76% 106.76% 84,325.50
2023 84,325.50 6.76% 106.76% 90,025.90
2024 90,025.90 6.76% 106.76% 96,111.66
2025 96,111.66 6.76% 106.76% 102,608.80
2026 102,608.80 6.76% 106.76% 109,545.16
2027 109,545.16 6.76% 106.76% 116,950.41
2028 116,950.41 6.76% 106.76% 124,856.26
2029 124,856.26 6.76% 106.76% 133,296.54

The table shows the projected demand that the target market is going to need, the
computation was from the previous table presented which is the demand that the
proponents have gathered multiplied with the annual increase of demand in percentage
of the previous year’s demand to get the increased volume sold by the garland
makers/peddlers, which was ensured that they get their supply from producer/traders, to
arrive at the next year’s base demand.
Table 2.8 AGGREGATE PROJECTED DEMAND FROM ALL KEY PLAYERS

Projected Average 100% +

Projected Demand (1L -
Year Demand (1L - Annual Annual
Can of Car Oil)
Can of Car Oil) Increase Increase

2020 588,690.00
2021 588,690.00 6.76% 106.76% 628,485.44
2022 628,485.44 6.76% 106.76% 670,971.06
2023 670,971.06 6.76% 106.76% 716,328.70
2024 716,328.70 6.76% 106.76% 764,752.52
2025 764,752.52 6.76% 106.76% 816,449.79
2026 816,449.79 6.76% 106.76% 871,641.80
2027 871,641.80 6.76% 106.76% 930,564.79
2028 930,564.79 6.76% 106.76% 993,470.97
2029 993,470.97 6.76% 106.76% 1,060,629.60
2030 1,060,629.60 6.76% 106.76% 1,132,328.16

The Total aggregate projected annual demand of all the key players was taken by
adding all sub-tables A, B, C and D.

Vendors

As mentioned in the early part of this chapter is treated as supplier of unprocessed

Sampaguita buds, who distributes the products in to two or more dealers which increase
the flow of the Sampaguita in the central place of trade. As the case maybe, due to high
volume of consumers, the supplier also faces so many transactions, in which with the help
of the vendor the numerous Sampaguita buyers are being accommodated.

Thus, the proponents gathered sample vendors who purchase and sell
unprocessed Sampaguita buds in center markets for the Sampaguita, specifically in
Golangco, San Roque Dau, Lubao, Pampanga as listed:
Table 2.9 LIST OF SUPPLIERS OF SAMPAGUITA BUDS/FLOWERS AND
PERCENTAGE SHARE

Place
Lubao, Pampanga
Florida Blanca, Pampanga
Guagua, Pampanga
Del Pilar, Bataan
Dinalupihan, Bataan
San Pedro, Laguna
Total
Percentage Share in
NUMBER OF SUPPLIER
Sampaguita Market
4 40.00%
2 20.00%
1 10.00%
1 10.00%
1 10.00%
1 10.00%
10 100.00%

In order to figure out the status of supply needed to maintain the stability of the
existing Sampaguita market, the respondents took a sample of suppliers engaged in
selling Sampaguita in the Golangco Junction Located in Lubao, Pampanga. The list
obtained is composed of suppliers coming from Lubao, Pampanga 7 (40%) out of 15
respondents which is the largest of them since they are just near the central place of
selling, followed by people coming from Florida Blanca, Pampanga which is 4 (20%) out
of 15 respondents, and Guagua, Pampanga which is 1 (10%) out of 15 respondents. Some
of the suppliers are coming from outside the province which is from Del Pilar, Bataan which
is 1 (10%) out of 15 respondents, from Dinalupihan, Bataan which is 1 (10%) and also
from San Pedro, Laguna which is 1 (10%) out of 15 respondents interviewed. Therefore
with the result obtained and upon further analyses it can be implied that even though
Pampanga has a plenty number of producers/traders still people are still being opted to
buy from suppliers outside the province which is because the current supply that the
province has is insufficient to cover all the demand needed.

Producers/Traders from Lubao, Guagua and Florida Blanca, Pampanga

According to F. Sanchez (2011) one of the known provinces in Sampaguita

industry, aside from Laguna and Quezon, is Pampanga. As a matter of fact, the Provincial
Government of Pampanga headed by Governor Lilia Pineda included in one of her top
programs is to finance Sampaguita growers in whole of Pampanga specifically the three
municipalities of Lubao, Guagua and Florida Blanca. These farmers are known to be
expert in dealing with jasmine plants like Jasminum Sambac also known as Sampaguita
flowers.
Therefore, the researchers decided to interview one of these farmers known to be
Arnold Ocampo who took care for sampaguita plantation for more than 30 years. The
results of the gathered information from these farmers according to seasons are as
follows:

Table 2.10 COMPUTATION OF THE ANNUAL SUPPLY – PRODUCERS/TRADERS

FROM LUBAO, GUAGUA AND FLORIDA BLANCA, PAMPANGA
Peak Season (March to September)

Average
Daily
Annual
Mid- Sample Supply Days
Range Supply of 1L -
Point Respondents (1L Can of Covered
Cans of Car
Car Oil)
Oil
Between 5 -30 17.5 0 0 210 0.00
Between 31 - 55 43 0 0 210 0.00
Between 56 - 80 68 0 0 210 0.00
Between 81 - 100 90.5 0 0 210 0.00
101 and above 50 7 350 210 73,500.00
Total 7 350 210 73,500.00
Average Supply
During Peak 10,500.00
Season
Average Daily
50.00
Supply

The computation of the annual supply coming from small time supplier which is
usually comes from Lubao, Florida Blanca and Guagua, Pampanga. The computation
made to get the annual demand for small time supplier is by giving the respondents the
average ranges of supplies that the respondents usually sell. Then the median was
computed so that evenly spread basis of volume of supplies can be created per demand
and then multiplied to the number of respondents falls under the range made to determine
the number of demand of Daily 1L - Can of Car Oil and multiplied by the number of days
covered under the peak season and then total all the demand divided by the number of
respondents to get the average demand during the Peak Season, which is from March to
September, and dividing it by the number of days of the season to get the Average Daily
Supply.
 Lean Season (October to February)

Daily Average
Supply Annual
Mid- Sample Days
Range (1L Can Supply of
Point Respondents Covered
of Car 1L - Cans
Oil) of Car Oil
Between 5 -30 17.5 5 87.5 150 13125
Between 31 - 55 43 2 86 150 12900
Between 56 - 80 68 0 0 150 0
Between 81 - 100 90.5 0 0 150 0
101 and above 50 0 0 150 0
Total 7 365 150 26,025.00
Average Supply
During Lean 3,717.86
Season
Average Daily
24.79
Supply

The computation of the annual supply coming from small time supplier which is
usually comes from Lubao, Florida Blanca and Guagua, Pampanga. The computation
made to get the annual demand for small time supplier is by giving the respondents the
average ranges of supplies that the respondents usually sell. Then the median was
computed so that evenly spread basis of volume of supplies can be created per demand
and then multiplied to the number of respondents falls under the range made to determine
the number of demand of Daily 1L - Can of Car Oil and multiplied by the number of days
covered under the lean season and then total all the demand divided by the number of
respondents to get the average demand during the Lean Season, which is from October
to February, and dividing it by the number of days of the season to get the Average Daily
Supply.

Total Average Annual Supply for Farmers from Lubao, Guagua and Florida
Blanca, Pampanga

Sample Average Annual Supply of 1L -

Season
Respondents Cans of Car Oil

PEAK 12 10,500.00
LEAN 12 3,717.86
Total 14,217.86
 The table shows the computation of the average annual supply for small time
farmers which was later accumulated from the prior presented portraying the Peak or
Lean Season coming from the 12 respondents basically coming from Lubao, Guagua,
and Florida Blanca, Pampanga.

Producers/Traders from Dinalupihan & Del Pilar, Bataan and San Pedro, Laguna

Since the supply of sampaguita here in Pampanga is insufficient to cover the

demand by the consumers of sampaguita leis and garlands, many of vendors, garland
making contractors garland makers and garland makers/peddlers who take their raw
materials supplies, many of these key players don’t have any choice but to get their supply
from places outside the province to sustain their business.
Apparently since sampaguita can’t be stored in a long period of time the
sampaguita coming from these producers/traders the delivery is usually made every week
during Sundays and Fridays in average. The volume delivered is same as much as
quantity that they take from producers/traders in the province.
As the researchers continued to gather information the data are as follows:
Table 2.11 COMPUTATION OF THE ANNUAL SUPPLY FROM LAGUNA AND
BATAAN
Peak Season (March to September)

Daily Average
Supply Annual
Mid- Sample Days
Range (1L Can Supply of 1L
Point Respondents Covered
of Car - Cans of
Oil) Car Oil
Between 5 -30 17.5 0 0 210 0.00
Between 31 - 55 43 0 0 210 0.00
Between 56 - 80 68 0 0 210 0.00
Between 81 - 100 90.5 1 90.5 210 19,005.00
101 and above 50 2 100 210 42,000.00
Total 3 190.5 210 61,005.00
Average Supply
During Peak 20,335.00
Season
Average Daily
96.83
Supply

The computation of the annual supply coming from outside the province of
Pampanga, like Dinalupihan, Bataan, Del Pilar, Bataan and San Pedro, Laguna gathered
from the sample taken. The computation made to get the annual demand for small time
supplier is by giving the respondents the average ranges of supplies that the respondents
usually sell. Then the median was computed so that evenly spread basis of volume of
supplies can be created per demand and then multiplied to the number of respondents
falls under the range made to determine the number of demand of Daily 1L - Can of Car
Oil and multiplied by the number of days covered under the peak season and then total
all the demand divided by the number of respondents to get the average demand during
the Peak Season, which is from March to September, and dividing it by the number of
days of the season to get the Average Daily Supply.
 Lean Season (October to February)

Daily Average
Supply Annual
Mid- Sample Days
Range (1L Can Supply of
Point Respondents Covered
of Car 1L - Cans
Oil) of Car Oil
Between 5 -30 17.5 1 17.5 150 2,625.00
Between 31 - 55 43 1 43 150 6,450.00
Between 56 - 80 68 0 0 150 0.00
Between 81 - 100 90.5 0 0 150 0.00
101 and above 50 0 0 150 0.00
Total 2 60.5 150 9,075.00
Average Supply
During Lean 4,537.50
Season
Average Daily
30.25
Supply

The computation of the annual supply coming from outside the province of
Pampanga, like Dinalupihan, Bataan, Del Pilar, Bataan and San Pedro, Laguna gathered
from the sample taken. The computation made to get the annual demand for small time
supplier is by giving the respondents the average ranges of supplies that the respondents
usually sell. Then the median was computed so that evenly spread basis of volume of
supplies can be created per demand and then multiplied to the number of respondents
falls under the range made to determine the number of demand of Daily 1L - Can of Car
Oil and multiplied by the number of days covered under the lean season and then total all
the demand divided by the number of respondents to get the average demand during the
Lean Season, which is from October to February, and dividing it by the number of days of
the season to get the Average Daily Supply.

Total Average Annual Supply for Average Annual Supply from Laguna And Bataan

Sample Average Annual Supply of 1L -

Season
Respondents Cans of Car Oil

PEAK 3 20,335.00
LEAN 3 4,537.50
Total 24,872.50
 The table shows the computation of the average annual supply for small time
farmers which was later accumulated from the prior presented portraying the Peak or
Lean Season coming from the 3 respondents basically coming from Dinalupihan,
Bataan, Del Pilar, Bataan, and San Pedro, Laguna.

Table 2.12 TOTAL AVERAGE ANNUAL SUPPLY OF COMBINED SUPPLIERS

Average Annual
NUMBER OF
Suppliers/Vendors Supply 1L - Can of Car
SUPPLIER
Oil
Small Time Farms 7 14,218
Supply from Laguna And Bataan 3 24,873
Total 10 39,090

The table or the total average annual supply of the combined suppliers was
computed by adding all the average annual supply of both season and both small time
suppliers and suppliers outside the province.

Table 2.13 AVERAGE ANNUAL INCREASE IN SUPPLY

Sample Annual
Range Mid-Point
Respondents Increase
Between 1 - 5% 3% 9 27%
Between 6 - 10% 8% 4 32%
Between 11 - 15% 13% 1 13%
Between 16 - 20% 18% 1 18%
More than 20% 20% 0 0
Total 15 86%
Average Annual Increase 5.73%

As shown in the table, the annual increase in supply for existing producers/traders,
where based in the ranges made by the researchers inquired from other studies of how
increase in demand is determined, which is by an annual of five percent (5%) increase
and computed their median to be multiplied by the number of respondents experiencing
the increase and adding them all and divide by the total number of respondents which is
fifteen (15) in the case of producers/traders to get the average annual increase in demand.
Projected Supply Analysis

Projecting supply and analyzing such, plays an important role determining on what
is the role of a newly establish farm. It can give guidance into the determination of the
market share that can be obtained in the future in playing a role of the channel of
distribution. Therefore, the researchers gathered the information regarding the demand
that other producers/traders are encountering in their supply of the sampaguita buds. As
shown in table 2.12, the following are the supplies projected for the coming 10 years.

Table 2.14 TOTAL PROJECTED SUPPLY

Total Number of Key Demand (1L -

Average Annual Demand
Players (COMBINED) Can of Car Oil)

10 39,090 390,904

Projected
Average 100% + Projected
Supply (1L -
Year Annual Annual Supply (1L -
Can of Car
Increase Increase Can of Car Oil)
Oil)
2019 390,904
2020 390,904 6.00% 106.00% 414,358
2021 414,358 6.00% 106.00% 439,219
2022 439,219 6.00% 106.00% 465,572
2023 465,572 6.00% 106.00% 493,507
2024 493,507 6.00% 106.00% 523,117
2025 523,117 6.00% 106.00% 554,504
2026 554,504 6.00% 106.00% 587,774
2027 587,774 6.00% 106.00% 623,041
2028 623,041 6.00% 106.00% 660,423
2029 660,423 6.00% 106.00% 700,049

The table shows the projected supplies that the producers/traders shall
produce, the computation was from the previous table presented which is the supply data
that the proponents have gathered multiplied with the annual increase of supply in
percentage of the previous year’s supply to get the increased volume made by the
suppliers, to arrive at the next year’s base demand.
PROJECTED DEMAND AND SUPPLY ANALYSIS FOR KEY PLAYERS

Table 2.15 PROJECTED DEMANDS AND SUPPLIES ANALYSIS FOR KEY PLAYERS

Projected Projected
Demand (1L - Supply (1L -
Year GAP UNSATISFIED
Can of Car Can of Car
Oil) Oil)

2019 197,786.43 33.60%

588,690.00 390,903.57
2020 214,127.66 34.07%
628,485.44 414,357.79
2021 231,751.81 34.54%
670,971.06 439,219.25
2022 250,756.30 35.01%
716,328.70 465,572.41
2023 271,245.77 35.47%
764,752.52 493,506.75
2024 293,332.64 35.93%
816,449.79 523,117.16
2025 317,137.61 36.38%
871,641.80 554,504.19
2026 342,790.35 36.84%
930,564.79 587,774.44
2027 370,430.06 37.29%
993,470.97 623,040.90
2028 400,206.24 37.73%
1,060,629.60 660,423.36
2029 432,279.40 38.18%
1,132,328.16 700,048.76

In order to get the projected Supply and Demand, were just subtracted to each
other to get the difference, subsequently the difference was divided to the base amount
which is the projected demand and the result to be converted into percentage which will
be the percentage unsatisfied portion of the current suppliers of sampaguita buds in the
province.
Production Capacity

Table 2.16 CAPACITY TO PRODUCE

Average
Average
Number Production
Number Number Total Quantity
of Buds Capacity in
of of Days Production per 1L
produced 1L - Can of
Year Season Shrubs Covered of Buds Can of
per Car Oil
Car Oil
shrubs

(a*b*c=
(a) (b) (c) (e) (d/e=f)
d)
2020 Peak 9750 18 210 36,855,000 600 61,425
Lean 9750 1 150 1,462,500 600 2,438
2021 Peak 19500 18 210 73,710,000 600 122,850
Lean 19500 1 150 2,925,000 600 4,875
2022 Peak 19500 18 210 73,710,000 600 122,850
Lean 19500 1 150 2,925,000 600 4,875
2023 Peak 19500 18 210 73,710,000 600 122,850
Lean 19500 1 150 2,925,000 600 4,875
2024 Peak 19500 18 210 73,710,000 600 122,850
Lean 19500 1 150 2,925,000 600 4,875
2025 Peak 19500 18 210 73,710,000 600 122,850
Lean 19500 1 150 2,925,000 600 4,875
2026 Peak 19500 18 210 73,710,000 600 122,850
Lean 19500 1 150 2,925,000 600 4,875
2027 Peak 19500 18 210 73,710,000 600 122,850
Lean 19500 1 150 2,925,000 600 4,875
2028 Peak 19500 18 210 73,710,000 600 122,850
Lean 19500 1 150 2,925,000 600 4,875
2029 Peak 19500 18 210 73,710,000 600 122,850
Lean 19500 1 150 2,925,000 600 4,875
2030 Peak 19500 18 210 73,710,000 600 122,850
Lean 19500 1 150 2,925,000 600 4,875 Commented [NNA1]:

To compute for the production capacity, the number of shrubs were multiplied to
the average number of buds that the shrubs can bear and then multiplied to the respective
number of days in each season then divided by the average number of buds per can which
is 600 to get the average number of 1L – Can of Car Oil which is the capacity of Reyna
Senyorita Sampaguita Inc. to produce in a year.
Projected Sales

Table 2.18 PROJECTED SALES

Total
Projected
Production Projected Sales
Year Season Price Income for
Capacity Income
the Year
(Aggregated)
Peak 61,425 47 2,886,975.00
2020 3,681,600.00
Lean 2,438 326 794,625.00
Peak 122,850 47 5,773,950.00
2021 7,363,200.00
Lean 4,875 326 1,589,250.00
Peak 122,850 47 5,773,950.00
2022 7,363,200.00
Lean 4,875 326 1,589,250.00
Peak 122,850 47 5,773,950.00
2023 7,363,200.00
Lean 4,875 326 1,589,250.00
Peak 122,850 47 5,773,950.00
2024 7,363,200.00
Lean 4,875 326 1,589,250.00
Peak 122,850 50 6,142,500.00
2025 7,848,750.00
Lean 4,875 350 1,706,250.00
Peak 122,850 50 6,142,500.00
2026 7,848,750.00
Lean 4,875 350 1,706,250.00
Peak 122,850 50 6,142,500.00
2027 7,848,750.00
Lean 4,875 350 1,706,250.00
Peak 122,850 50 6,142,500.00
2028 7,848,750.00
Lean 4,875 350 1,706,250.00
Peak 122,850 50 6,142,500.00
2029 7,848,750.00
Lean 4,875 350 1,706,250.00
Peak 122,850 50 6,142,500.00
2030 7,848,750.00
Lean 4,875 350 1,706,250.00
TOTAL 80,178,150.00

The table exhibited the total projected sales in Peso amount. This was computed
by multiplying the total production capacity taken in the previous table by the unit price in
each respective season and then added to get arrive at the annual projected sales.

Table 2.19 PERCENT TO SATISFY THE TARGET MARKET

 GAP (1L - Can of Car Production Capacity Percent to
Year
Oil) (100%) Satisfy

2020 122,860.00 63,862.50 51.98%

2021 135,807.90 127,725.00 94.05%
2022 149,897.25 127,725.00 85.21%
2023 165,220.47 127,725.00 77.31%
2024 181,877.11 127,725.00 70.23%
2025 199,974.37 127,725.00 63.87%
2026 219,627.68 127,725.00 58.16%
2027 240,961.29 127,725.00 53.01%
2028 264,108.96 127,725.00 48.36%
2029 289,214.64 127,725.00 44.16%
2030 316,433.25 127,725.00 40.36%

The percent to satisfy was calculated by applying the Gap determined in Table
2.15 and then was subtracted by the production capacity. Subsequently the difference
was divided by the base which is the Gap multiplied by 100% to convert into percentage
rate.