CHAPTER II

MARKETING FEASIBILITY

Project Description

The Proposed Four-Storey Commercial Parking Building is a contemporary

building design which conforms to strength and purpose. The structure has its

exquisite design and elegant facade which can also attract costumer’s attention.

It is also a well secured and safe building that protects the owner’s car from theft

or from any danger and threat.

Description of the Target Market

The target markets are the people in EVRMC and subdivisions near of the

structure, particularly the proprietor of the medical center who owns private cars

and the people that has patients in EVRMC.

The project will provide parking spaces for the welfare and satisfaction of

the following:

Visitors. These are the people who are in the vicinity for a short period of

time. Those who visit their patients and the ones that has important matter in the

hospital and near subdivisions. They are considered as target in as much as they

are in the vicinity near the parking structure.

 Employee. There are lot of employees who own cars and parked their cars

in front of the establishment or some just parked it on street. Therefore, the

parking allocation for the employee is not enough for them. Because of this, we

created a spacious and comfort toward the employee where they won’t problem

the allocation of the space for parking.

Demand Analysis

A survey was conducted in EVRMC and in Peerless Village where the target

markets live and work. The area shows lack of parking allocation, particularly the

EVRMC. There are employees who parked their vehicles off-street and this

causes traffic congestion and narrowing of the road.

During the survey it was found out that the parking area was absolutely a

demand. Since it shows that, most customers agree the proposal and

implementation of the parking structure. See table 1

Table 1

Perception of the Respondents to On-Street Parking

Statement Mean Interpretation

1. Problems Caused by “on-street parking”

near EVRMC

a. It causes traffic problem. 4.74 Strongly Agree

b. It attracts more thieves. 3.88 Agree

 c. It attracts more beggars. 4.12 Strongly Agree

d. It causes road accidents. 4.12 Strongly Agree

Grand Mean 4.21 Strongly Agree

2. Causes of “on-street parking”

a. Lack of parking spaces. 4.12 Strongly Agree

b. Weak implementation of traffic rules. 3.94 Agree

Grand Mean 4.03 Strongly Agree

3. A commercial parking building will help 4.88 Strongly Agree

solve the traffic problem.

Grand Mean 4.88 Strongly Agree

Table 1 shows the respondents perception to “on-street parking”. It is

drawn from the table that the lack of parking spaces is the main reason of “on-

street parking” and several traffic problems. In addition, this system would entice

more thieves since there’s a lack of personnel who would look over and protect

their prized possessions. Beggars are also a concern of the respondents. Moreover,

they also felt that it somewhat contributes to road problems such as congestion to

traffic and road accidents in Maharlika Highway passing Brgy.93 Bagacay,

Tacloban City due to the absence of parking areas.

As a solution to the problem, a proposed Car Park was recommended. The

respondents felt that the presence of traffic volunteers could not help decongest

the traffic because of double parking and illegal parking.

Historical Demand

Security is one of the car owner’s major concerns, and lack of secured

parking spaces is one of the major problems in the area. To provide security, this

study proposes a construction of a new Four-storey parking building near EVRMC.

And in addition, since the said location is along the National Highway and beside

the vicinity of EVRMC, a lot of people would benefit from this Car Park.

Table 2

No. of Registered Private Vehicles

Year Total No. of Private Total No. of Private

Vehicles in Tacloban City Vehicles in Region 8
2014 19,891 142,321

2015 27,642 170,819

2016 27,516 192,319

2017 33,804 215,980

2018 38,588 260,234

Source: Land Transportation Office, Tacloban City

Table 2 showed the total number of registered private vehicles in

Tacloban City, Tacloban City Extension and the whole Region 8.

 Table 3

Projected Number of Registered Private Vehicles

Year Projected Total No. of Private Demand

Vehicles in Region 8
2019 280,631 22,451

2020 308,730 24,699

2021 336,829 26,947

2022 364,927 29,195

2023 393,026 31,442

2024 421,125 33,690

2025 449,223 35,938

2026 477,322 38,186

The statistical straight line method was used in getting the projected

number of vehicles for the next eight years. With the survey conducted , it

showed that 94% of registered vehicles in the area will patronize our car park

service.

As it is shown in Table 3, the projected increase of private vehicles shows

the increase in demand for parking facilities which is assumed to be 8% of the

total number of private vehicles in the Region 8.

 Table 4

Supply of Parking spaces

Name of Parking Area

Parking Spaces
EVRMC Parking Space 115

50 pesos whole day park spaces 23

TOTAL 138

Table 4 shows the supply of parking facilities allocated by nearby parking

areas, particularly 100-meter radius from its location.

Projected Supply

The supply of car spaces could only be taken through actual survey of the

area, since there is no available data pertaining on that matter, it was found out

that there are only 122 parking spaces available in that area and in projection for

the future supply, a percentage of 8% is assumed in Table 5. This is because car

spaces are fixed with the constructed building along the highway and included

future streets. This only increases if the number of buildings/establishment

increases.
 Table 5

Projected Number of Parking Spaces

Years
Supply of Parking Spaces
2020 149

2021 160

2022 172

2023 185

2024 199

2025 214

Table 6

Demand and Supply Analysis of Car Park

Years Total No. Demand Supply Demand- Market Share

of
Registered Supply Served %
Private
Vehicles gap

2020 308,730 24,699 149 24550 134 0.65

2021 336,829 26,947 160 26787 146 0.60

2022 364,927 29,195 172 29023 155 0.55

2023 393,026 31,442 185 31257 160 0.51

2024 421,125 33,690 199 33491 160 0.47

 2025 449,223 35,938 214 35724 160 0.45

Table 6 shows the analysis of the demand and supply of the proposed

project. It is projected that 160 cars will be served per hour, in which 13% of the

demand was accommodated during the first year of the operation of the project.

There is an assumed 0.2% decrease per year of the total number of vehicles

accommodated. On the year 2025, the total number of cars accommodated was

160. This year operates the maximum prospective and will cater 11% of the

projected total demand.

Marketing Program

Product. The parking structure is design for the people of EVRMC and car

owners who look for secured and convenient parking area.

Price. The price plays an important role in running a service for an

operation. There should be proper management and control of prices or else, the

business will be unsuccessful.

And in order the parking structure to succeed, the management should

render good service toward the costumer, by giving them reasonable and

affordable price. The price should be acceptable to the majority of the target

market.
 The price for the rental of the parking space will be as low as Php.25 per

hour, for the beginning of the year of operation. The experimental rate per hour

will be Php. 15, which will be based upon the market response for the first

operation.

Promotion

The proposed commercial parking building will render service though giving

the customers the good quality of service, and excellence security of the area.

The following are the list of strategies:

1. Free parking fee is administered to all customers at the first service of

operation. This will help customers experience and observe the good quality

and excellence offered by the business.

2. To promote the use of parking space and to help minimize the traffic in the

area. Seminars may be also conducted for the selected VIPs ,employers,

and most especially car owners, to encourage them to use parking structure

and the positive values of using it.

3. Advertisement will be disseminated through local radio station, billboards

and televisions to encourage more car owners.