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Chapter 2

Market Aspect

This chapter discusses the market aspect of the proposed business.

The product, target market, market size and trends, competition,

estimated market share, demand, supply, demand and supply analysis,

and marketing strategy is discuss in this chapter.

2.1 The Products and Services

The proposed business will be promoted as t-shirt printing business.

The product will be made up of t-shirt with graphic design created by the

customer. The product will be prepared using Dye-sublimation t-shirt

printer.

The trend that the proposed business will offer is “wear your

imagination” offering. Customer can unleash hands-on imagination through

artwork and the proposed business will bring it to life.

The proposed business will not prepare its own t-shirt fabric. It will

obtain its supplies from a local company. The trend that the proposed

business is presenting will distinguish the proposed business from other t-

shirt printing venturers.

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2.2 Market Research and Analysis

Before any establishment could be set-up, its viability had to be

analyzed in assessing whether the plans will be effective or not. Thus, this

section explains and discusses the target market, the market size and

trends, the competition and projections in estimating the market share of

the proposed business. This section will prove the viability and

effectiveness of whether an establishment should be put up or not.

2.2.1 Target Market

The proposed business mainly targets the college students,

professionals, and individuals who love to do artwork and who are

ages 10-60 years old. “La Camiseta Draw and Print” target

customer/s within the locality of General Santos City who is willing to

spend money for the product.

2.2.2 Market Size and Trends

The market of the business will be the people of General

Santos City with a total population of 483,253 based on the data

given by National Statistics Office on the 2010 census multiplied by

the annual growth rate of 2.71%.

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Table No.1

Market Size

Table No. 1 shows the computation of the total primary target

market of the proposed business who are those individuals of

General Santos City ages 10 years old to 60 years old. Population

ages 0-9 years old and 60 years old above who are not the primary

target market of the proposed business are deducted to the General

Santos City’s total population to get its total primary target market.

2.2.3 Competition

This type of business, “La Camiseta Draw and Print” is

pioneering in General Santos City, but there are many indirect

competitors which are some t-shirt printing business in the city such

as Chantong T-shirt Printing, SoulJah, NewJersey Printing and

Printamax Digital Printing.

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2.2.4 Estimated Market Share

Determining the market share of the proposed business is one

of the study’s marketing objectives. The researchers conducted a

survey to its target market to get the total demand in relation to the

frequency. This is computed and shown on table 2.

2.2.4.1 Demand
Estimated market share is the approximate percentage

of an industry that is earned by a particular company over a

specified time period. This measurement indicates a

company’s size within its market. To determine, the researcher

conducted survey to respondents within General Santos City.

Table No. 2

Market Demand

The total demand for the service is computed as the

market size multiplied by the average frequency in a year,

deducted by the 10% of marginal error. The researcher chose

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the margin of error of 10% considering the sample size is 100

respondents only compared to the whole population in

General Santos City. Table 3 shows the average frequency in

a year of the product.

Percentages are computed as the ratio of the number of

persons over 547. Frequencies are based on how often the

customers will avail the product in a year.

The total number of persons in a year who wants to

avail the product offered is computed as the percentages

multiplied to the frequencies.

Table 3

Average Frequency

Table 3 shows that 90 out of 547 respondents are willing

to avail the XS. There are also 161 respondents that are

willing to buy the small size, 143 respondents for medium, 108

respondents for large and 45 respondents for extra large.

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Then the result were multiplied to their frequency in a year to

get the average total number of persons in a year that will buy

divided by the total agreed respondents of 547. The total

average number of respondents in a year that are willing to

avail the product is 23.54

2.2.4.2 Supply

The supply of La Camiseta Draw and Print’s primary

existing players is the average number of persons that they

can accommodate. Identifying the supply of primary existing

players is significant since it will determine the free market of

the business.

In determining the supply or the market share of the

indirect competitors, the researcher based the information

according to the interview conducted. In computing the total

supply, the average number of order of t-shirts per

establishment per day was multiplied by the number of days

the establishment is operating per year.

Table No. 4

Competitor’s Market Share

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2.2.4.3 Demand and Supply Analysis

This section will present how demand and supply

affects each other. Demand and supply must meet to also

meet market’s satisfaction and to minimize opportunity cost.

The following computation shown in the table below will

determine the total market share of the proposed business.

Table No. 5

Estimated Market Share

The market share of “La Camiseta Draw and Print” is

computed 10,512 annual capacities divided by 6,495,092 free

markets. Free market is computed by deducting the total supply to

the demand in a year. The figure below shows the estimated market

share of “La Camiseta Draw and Print”.

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Table No. 6

Annual Capacity

2.3 Marketing Strategy

This section discusses the pricing strategy, promotional strategy and

service strategy of the proposed business. Basically, the basic concept of

marketing strategy lies on what is called the 4P’s of marketing, product,

pricing, promotion, and placement.

2.3.1 Market Penetration

The proposed business’ first strategy is to infiltrate the market.

The proposed business plans to perform an extensive promoting. To

reach the target customers, various methods will be used, such as

leaflets, social media page, tarpaulins and local print media.

2.3.2 Pricing Strategy

Prices of products and services are set on a cost-plus method.

In pricing, the researchers also considered the amount that

customers are willing to spend base on the survey conducted.

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The product of the proposed business will be priced base on

the market price of ingredients used in production.

Table No. 7

2.3.3 SWOT Analysis

The SWOT Analysis identifies the strengths and weaknesses

within the business, and outside opportunities and threats. The

following are the strengths, weaknesses, opportunities and threats of

La Camiseta Draw and Print that will be of big help for the

researchers in the establishment of both short-term and long-term

strategies for the proposed business.

2.3.3.1 Strength

2.3.3.1.1 Unique Concept

The product offered by La Camiseta Draw and

Print is a big edge for the proposed business against

existing t-shirt printing businesses. The proposed

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business is giving individuals a chance to design their

own clothes.

2.3.3.1.2 Pioneering

The proposed business is pioneering in terms of

this kind of product and no direct competitors in the city.

2.3.3.2 Weaknesses

2.3.3.2.1 Cost

The proposed business may experience

fluctuation of prices of raw materials.

2.3.3.2.2 New Product in the Market

The proposed business may face the issue on

promoting and marketing the product since the product

offered by the business is new in the t-shirt printing

industry. The proposed business may face this issue

because the product is new in the market. The

proposed business must ensure to make the customer

feel comfortable and that the seller can be trusted.

2.3.3.3 Opportunities

2.3.3.3.1 Expansion
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The proposed business could expand in the near

future. This expansion could open more opportunities to

create brand image at initial launch.

2.3.3.4 Threats

2.3.3.4.1 Competition

La Camiseta Draw and Print has a lot of indirect

competition especially there is a large number of

existing players in the t-shirt printing industry and this

number is increasing. The proposed business must

ensure to remain creative and effective in its marketing

strategies.

2.3.4 Promotional Strategy

To boost the sales, promotions are needed since La Camiseta

Draw and Print is new in the market. The promotion would be radio

advertisement from Brigada FM Gensan one month prior to opening

the business, flyers, signage (4x5 ft. | 20 tarps) and through social

medias. Promotion can be made also through sales talking.

The physical environment where products and services are

sold and delivered is also the strategy of the proposed business. It

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can have a significant impact on how customers' experience in the

proposed business. Friendly staffs are also considered.

The proposed business would also be partnering the near

establishments and business to provide discounts for the service.

Setting up a partnership with them that allow the proposed business

offer discounts to customers of the establishment and in turn, they

can also offer something coming from the business. It will increase

the chances of having new customers that will try and patronize the

product.