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Market Study

Market Study focuses on the study of demand, supply, and the analysis if a demand gap
exist, the pricing of the product or service and the different marketing programs that will suit best
for the business. Market study provides answer to questions if there are potential demands for the
product or services.

This chapter encompasses the demand, supply, demand and supply analysis, projected
market share, projected revenue and marketing strategies and programs of LPR CCTV Installation

A. Study of Demand Target Market

Today, more than ever, it is crucial to take security seriously. With crime increasing and
burglaries very common place, it is very important to consider the available security options and
choose one that is the best fit for you and your business. The target market of the proponents will
be business of rural areas where CCTV’s are not yet prevalent. The city of Molave, the
municipality of Josefina, Dumingag, Mahayag, Ramon Magsaysay and Tambulig will be the target
market of this study.

Table 1. Projected population of business in 2020

City/Municipality Population City/Municipality Population

Molave 453 Mahayag 76

Josefina 40 Ramon Magsaysay 44

Dumingag 144 Tambulig 53

Total= 770

Source: Department of Trade and Industry

Based on the survey 50%, equivalent to 31 respondents are interested on installing a
CCTV system while other 50% is not interested on CCTVs.
Historical Demand

The demand can be gathered in the Municipalities/Cities covered by LPR CCTV

Installation services by conducting a sampling survey in the said barangays, we gathered the
1. Demand of establishments for using CCTV’s

Table 2. Past Population of establishments

2015 2016 2017 2018 2019

Total 496 544 594 647 706

Source: Department of Trade and Industry

Projected Demand of establishments for using CCTV’s

350 322
300 268
2015 2016 2017 2018 2019

Projected Demand of Internet users

Failure to obtain statistical data regarding past number of users of internet, the past demand
is computed by multiplying the Population to the percentage of the establishments that can avail
the use of CCTV’s estimated by the proponents based on their experience in the field, multiplied
to 50% the percentage of this establishments that are interested in installing a CCTV system. The
resulting figure is the Demand for establishments for CCTV systems.

Past Demand Pattern

The past demand of CCTV’s system is steadily growing, as business tend to invest more
on security. CCTV’s have been proven to be useful in business, because of this establishments
have been wanting to have one of their own.

Projected Demand

Projected Demand of establishments for using CCTV’s

600 545
500 458




2020 2021 2022 2023 2024

Projected Demand of Internet users

The projected population for 2019-2020 is based on the data provided by the Department
of Trade and Industry (DTI). The projected population for 2018-2022 is computed by multiplying
the 2017 population by the growth rate as calculated based on the past population which is 9.06%.
All other relevant data presented above are based on the computations from the obtained past
demand calculations
B. Study of Supply
CCTV Installation services is a service commonly offered by tech-oriented
entities, they are many that supply it in urban cities but it is contrary to rural areas where
there are only few entities that are tech-oriented let alone offer CCTV installation services.
Although entities in the rural area might go to urban cities to acquire CCTV systems it
would be much convenient of the services are offered to them directly.

Historical Supply

Historical Supply of establishments for using CCTV’s


250 226
200 190




2015 2016 2017 2018 2019

Population of Internet Users

Table 4. Number of entities advertising on Radio and Newspaper

The figures were obtain through the interview and survey we conducted on entities in the
covered area. The past supply was calculated using the average growth rate of businesses in the
said area.
Projected Supply

Projected Supply of establishments for using CCTV’s

400 351
350 295
300 248





2020 2021 2022 2023 2024

Population of Internet Users

The projected supply for 2020 is based on the results of our survey. The projected supply for
succeeding years is calculated by getting the average growth rate of business which is 9.06%
(See Appendix), multiplying it to the number of supply we gathered on our interview on

Evaluation of Projected Supply

Projected supply can’t be calculated from the results of our interview and survey by the
current suppliers. To solve this issue we used the growth rate of business which is 8.37% (See
Appendix) to come up with the projection of the past and current supply.

C. Demand-Supply Analysis

Demand Gap

Demand and Supply gap analysis is very important it analyzes current market and shows us if
there are market deficiencies or gap in supply in order for us to assess to how much product
or service we can still serve to satisfy demand. The gap is calculated by subtracting projected
supply to projected demand. The table below shows the available market for the next 5 years

Year Projected Demand Projected Supply Demand Gap

2020 385 248 137

2021 420 270 150

2022 458 295 163

2023 499 322 177

2024 545 351 194


Market Share
The market share can be projected by analyzing the demand and supply gap data. The
market share is the portion of excess supply that is currently not satisfied by the existing supply.

Market Share for CCTV installation services




Market Share Supplied

Market Share
Year Demand Gap Market Share

2020 137

2021 150

2022 163

2023 177

2024 194