I.

Executive Summary

The purpose of this study is to assure BizTech Furniture Corp. is capable of establishing

their business. The study evaluates the target market of the company which are the

households in Olongapo City. In terms of the product and company positioning, this study

explain how the company come up with their tagline along with the benefits of the product.

It also determined the factors that affect their customer in purchasing the product, even the

major competitors of the BizTech Furniture Corp., review on this study. The SWOT

analysis include to the study and served as an evaluation on how the company will improve

their business and be ahead to their competitors. The study also shows the different

strategies and programs of the company that will help them to develop and improve their

business.

These people have a contribution of ₱ 850.00 per person that is equal to ₱

5,100.00 as their capital. This company is now located at Norton Extension, New

Kalalake, Olongapo City. The proponents agreed that they are all responsible to carry on

the business and accordance to the distribution of income and losses, since all members

were give the equal amount from the very beginning up until all cost of production and

other expenditures were computed, then the income will be distributed equally as well.

Company Profile

BizTech Furniture Corp. is a company that specializes in producing hybrid furniture

products. The company prides itself in offering the highest quality products at the best
prices available in the market. BizTech Furniture Corp. was established by six students

from Gordon College aiming to produce table-chair hybrid: the Tandem Storage Space.

Company’s VMG:

Vision:

To be a leading and trusted provider of custom designed space management

solutions in Olongapo City by providing high class quality products at affordable prices

Mission:

To be a leading provider of high quality space management solutions of furniture

that provides strategic value to our customer.

Goals:

1.) To ensure the use of high-quality materials in making products

2.) To improve the ambiance of your home and add a unique touch to it

3.) To be a leading manufacturer in the industry

II. Current Market Situation

Market Description

Tandem storage space is a combination of two classic furniture, the table and the

chair. The proponents envisioned a 6-in-1 multifunctional furniture that is made of woods,
metals, and has been upholstered for the comfort ability of the users. It is a stool with a

detachable table that can be used if needed and this table can be rotated by almost 120˚.

Also attached on the bottom of the stool is a universal socket, which is designed for the

purpose of using your gadgets near to you even if you are charging it. There is also an

installed roller for a better convenience of transporting it.

The factors that can affect their customers in purchasing the product would be the

existing competitors. They are already known and accessible places like Design Fusion

Furniture, Lifestyle Interiors Olongapo City and other manufacturing company/store.

That’s why the proponents make sure to be active in social media to promote and advertise

their product. They also accept orders through Facebook page or contact them through

mobile number so it won’t be hassle to their customer when purchasing a product. After

finalizing orders, they will schedule meet-ups for delivery and payment of the product.

Review of Competition

The proponents conducted a survey for competitors that have a similar attributes to

the new innovated product. Below are the competitors of BizTech Furniture Corp. wherein

it shows the location and prices of their table and chairs products.

Competitors Location Ranging Price

 Design Fusion 1529 Rizal Avenue Php5,000-Php 10,999 (Table)

Furniture Extension, Olongapo City Php 3,500-Php6,999 (Chair)

Lifestyle Interiors 1290 Rizal Avenue Php 4,000-Php 8,999 (Table)

Olongapo City Extension, Olongapo City Php 2,500-Php 4,999 (Chair)

4 Ace’s Furniture 84 Gordon Avenue 14th Php3,500-Php 7,999(Table)

Street, Olongapo City Php 2,000-Php 4,999 (Chair)

M.R. Sunrise Furniture 1619, Rizal Avenue, Php 5,000-Php 8,999 (Table)

Olongapo City Php 2,000-Php 3,999 (Chair)

UNI Zentro 12th Street Gordon Avenue, Php 3,000-Php 9,999 (Table)

Olongapo City Php3,999-Php 8,000 (Chair)

Table 1. Major Competitors

The proponents found out that there are 5 major competitors of the business in

Olongapo City. The direct competitors are Design Fusion Furniture, Lifestyle Interiors

Olongapo City, 4 Ace’s Furniture, M.R. Sunrise Furniture and UNI Zentro.

III. Target Market

The current target market of BizTech Furniture Corp. is households in Olongapo

City that want a special type of furniture designed for small spaces. From the assumption

of the proponents, these are the potential market that have the capacity and interests to buy

and avail the product created.

 The proponents used the sample size calculator of Creative Research Systems to

get the sample populations, with 99% confidence level and 10% confidence interval. It

came up with 166 as our respondents to answer the survey questionnaires. Out of 166, 115

respondents were interested to buy the product. To get the target market on the overall

potential market, the proponents divided the total number of respondents to the number of

willing individuals; which is (115/166) multiplied by 100 which resulted to 69.28% and

therefore the number of the target market was reduced from 65,498 to 45,377 individuals.

IV. Product or Company Positioning

A. Company Logo

The proponents has chosen this logo because it fully display the true essence of the

company name which is BizTech Furniture which stands for Business and Technology.

The circular line represents an image of technology, while the figure inside it represents

the tools needed to make the furniture. And lastly the three circle represent the color of the

Philippine Flag.

B. Tagline

“We Build Your Ideas”

 BizTech Furniture aims to reinvent the usual use of table and chair. With Tandem

storage space, we customized your ordinary table and chair and turned it into a something

new hybrid product. The tandem storage space is a great concept for small homes where

every bit of free space available counts.

C. Company Name

BizTech Furniture Corp is a furniture company that produces hybrid furniture’s that

has a high quality but in an affordable prices. The proponents choose the company name

“BizTech Furniture Corp” for the reason that all of the proponents are currently studying

Business Administration and they have innovated the product using the improving

technology right now.

V. Demand and Supply

Demand

According to the City Planning and Development Office (CPDO) of Olongapo, the

total number of Household as of 2019 was 65,498. This has been the latest survey of the

department through the information resulted from the Community Based Monitoring

System (CBMS). This will be used as the primary information for deriving the population

for the following years, and also the growth rate percentage given.

Total population of the household in Olongapo City

BARANGAY POPULATION

New Asinan 1,119

 Banicain 2,015

Baretto 5,486

East Bajac-Bajac 5,644

East Tapinac 2,943

Gordon Heights 7,685

Kalaklan 3,511

New Kalalake 2,674

Mabayuan 3,297

New Cabalan 6,566

New Ilalim 454

New Kababae 698

Pag-asa 1,775

Sta Rita. 11,534

West Bajac-Bajac 2,369

West Tapinac 1,932

Old Cabalan 5,796

TOTAL 65,498

Table 2.1 Population of Households (as of 2019)

Demand Analysis

According to the City Planning and Development Office (CPDO), there are 17

barangays in Olongapo City with a total household population of 65,498 for the year 2019.
 The proponents distributed 166 survey questionnaires to different households of the

barangays in Olongapo City. The proponents use the sample size calculator of Creative

Research System to define the sample population with 99% confidence level and 10%

confidence interval.

Out of 166, there were 115 respondents who are interested to buy the product and

therefore the number of the target market was reduced to 69.28% of the total household

population. After tallying of surveys and conducting further computation, the result shows

that out of 115, 85 of the respondents were willing to accept and were capable to avail the

product. The proponents came up with 73.91% demand of the product.

Year Total Population Target Market Demand

of Households 115/166 85/115
(Growth Rate- (69.28%) (73.91%)
2.19%)
2019 65,498 45,377 33,538

2020 66,933 46,371 34,273

 2021 68,399 47,387 35,024

2022 69,897 48,425 35,791

2023 71,428 49,485 36,574

Table 2.2 Demand Table

The total population of the household in Olongapo City is 65,498. Based on the

survey, out of 115 respondents that are capable, 85 or 73.91%, which represents the total

population of 33,538, are willing to buy the Tandem Storage Space from the business. They

answered the question number 9 “If there will be a newly establishment that would sell

Tandem Storage Space (Table with Chair) which can lessen your space at home are you

willing to purchase now?”

Supply Analysis

For the competitors’ supply, the proponents include a question in the survey to find

out the number of company/store who are currently using an alternative product to Tandem

Storage Space among the existing competitors. Base on the survey, out of (166) of the

respondent, there were 110 or 66.27% of household respondents who have purchased and

are currently using product(s) from the competitors. They have answered the question

number two (2) “What other company do you think that sells a Tandem Storage Space

(Chair with Table)?”, 29 of them answered Design Fusion Furniture which is 17.47% of

the target market, 25 to Lifestyle Interiors Olongapo City which is 15.06%, 20 to 4 Ace’s
Furniture which is 12.04%, 17 to M.R. Sunrise Furniture which is 10.24%, 11 to UNI

Zentro which is 6.63% and 8 to Others which is 4.82%.

Business Name Number of Supply Percentage Number of Supply

from Sample Size Of supply from Demand
(166) on Demand (33,538*percentage)
Design Fusion

Furniture 29 17.47% 5,859

Lifestyle Interiors

Olongapo City 25 15.06% 5,051

4 Ace’s Furniture 20 12.05% 4,041

M.R. Sunrise Furniture 17 10.24% 3,434

UNI Zentro 11 6.63% 2,224

Others 8 4.82% 1,617

TOTAL 110 66.27% 22,226

Table 2.3 Competitors’ annual supply table based on survey conducted

For the supply analysis, the proponents divided the respondents (110) who

answered that they have already have a table and/or chair by the total number of

respondents (166) in order to get 66.27%. The demand for each year multiplied by the

percentage of supply available (66.27%) produced the figures of supply for each year on

Table 2.4.

Total
Population of Demand Supply
 Year Household Target (73.91%) (66.27%)
(Growth rate Market
by 2.19) (69.28%)
2019 65,498 45,377 33,538 22,226

2020 66,933 46,371 34,273 22,713

2021 68,399 47,387 35,024 23,210

2022 69,897 48,425 35,791 23,719

2023 71,428 49,485 36,574 24,238

Table 2.4 Supply Table

Demand and Supply Analysis

Year Total Populations

of Households Target Demand Supply D-S
(Growth rate- Market (73.91%) (64.71%) Gap
2.19%) (69.28%)
2019 65,498 45,377 33,538 22,226 11,312

2020 66,933 46,371 34,273 22,713 11,560

2021 68,399 47,387 35,024 23,210 11,814

2022 69,897 48,425 35,791 23,719 12,072

2023 71,428 49,485 36,574 24,238 12,336

Table 2.5 Forecast of Household Population of the Target Market

The table shows the forecast of household population of the target market, as

provided by the CPDO for the year 2019 to 2023. It also presents the percentage and the
figures of the demand and supply of Table/Chair products, as well as the D-S Gap. To get

the Gap, subtract the supply figure to the demand figure.

Share on
Year Gap Percentage Share on Gap Available
(73.91%) Market
2019 11,312 73.91% 8,361 2,951

2020 11,560 73.91% 8,544 3,016

2021 11,814 73.91% 8,732 3,082

2022 12,072 73.91% 8,922 3,150

2023 12,336 73.91% 9,118 3,218

Table 2.6 The Share on Gap of the proposed business of Chair with Table

The figure above shows the market share of the proposed business for the following

years. To get the gap, subtract the demand to the supply. To get the share on gap, multiply

the share on percentage which is the willing or demand rate to the gap. And to get the

available market, subtract the gap to the share on gap.

Year Demand Share on Gap Market Share on

Sales
2019 33,538 8,361 24.93%
 2020 34,273 8,544 24.93%

2021 35,024 8,732 24.93%

2022 35,791 8,922 24.93%

2023 36,574 9,118 24.93%

Table 5.7 The market share on sales of the proposed business for Chair with Table

To get the market share on sales, divide the share on gap by the demand.

VI. Market Share for Supply

The proponents were able to identify the market share on supply of the present

competitors based on the survey given to the respondents.

The share for supply includes the share of its competitors categorized with their

percentage on target market. To get the actual percentage, divide the number of people who

bought from the particular competitor to the total number of respondent which is 166 then

multiply it to 100. AS computed below, Design Fusion Furniture has 17.47% of the shares,

Lifestyle Interiors Olongapo City has 15.06%, followed by 4 Ace’s Furniture with 12.04%

shares, M.R. Sunrise Furniture with 10.24%, UNI Zentro which has 6.63%, and Others

with 4.83% for a total of 66.27%.

As of April 2019, the proponents found out that there are 5 competitors that

currently exist in the market who supply table or chair products. The competitors supply

66.27% of the market leaving 33.73% as an Available Market.

 17.47

33.73
Design Fusion Furniture
Lifestyle Interiors Olongapo City
4 Ace's Furniture
15.06 M.R. Sunrise Furniture
UNI Zentro
Others

4.38 Available Market

6.63 12.04
10.24

Graph 1.1 Share of Supply

VII. Market Share of Sales

The graph illustrates the competitors’ market shares together with the market share

of Tandem Storage Space and the available market share.

The market share of the competitors is 66.27%, while the market share of the

proposed brand named as “Tandem Storage Space” is 24.93%, and what remains is the

available market which is 9.2%

 9.8
17.47

Design Fusion Furniture

Lifestyle Interiors Olongapo City
24.93
15.06 4 Ace's Furniture
M.R. Sunrise Furniture
UNI Zentro
Others

4.83 12.04 BizTech Furniture Corp.

Available Market
6.63
10.24

VIII. SWOT Analysis

The Tandem Storage Space is created to give convenience to people using it and

provides a great concept for small homes where every bit of free space available counts.

There are factors which can affect the operation of the business and therefor withstand all

of this, BizTech Furniture Corp. must provide SWOT Analysis that may be the foundation

to continue a successful flow of the business,

STRENGTHS WEAKNESSES

 Customizable Products  Unknown to the Public

 Openness to Innovation  Limited Financial Capability

 Reliable Resources  Limited flexibility in pricing

 Affordable Prices  Competitors can offer similar

 Excellent product Design product quickly

 Uniqueness of the product to other  Low frequency of Buying

competitors  Making a single product will

 Hassle free when purchasing the consume more time

product  It is smaller compare to other

products

OPPORTUNITIES THREATS

 Spreading Online Sales  Changing Social Trends

 Collaboration with retailers  Economic Factors

 Increase in Innovative Design  Competition from established

 Acquisition of additional rounds of brand

capital  Increase in price inputs can cause

 Business opportunities in emerging upward pricing

markets  Determinants of Demand

 Appeal to customer  New to Market

 Attention of Customer  Highly technology used by the

competitors
IX. Marketing Strategy

2019 (1st Year of Operation)

 BizTech Furniture Corp. introduce the new product by giving paraphernalia such

as brochures, catalogues, flyers and business card that details product specification

to reach the widest desired customer

 In order to create awareness, the company has also provided advertisement on

social media like Facebook page showing the uniqueness of the product

 BizTech Corporation had created a commercial advertisement in relation to

promote the product

 The proponents applied personal selling

 In order to create awareness, the company will provide Radio Commercial within

Olongapo City

 From home-based business process, the proponents decided to look for a possible

location in order for the preparation for the latter operation

 The proponents decide to create an online market website in order to easily see the

available products in the company

2020 (2nd Year of Operation)

 The proponents decide to create a jingle about the product

 BizTech Furniture Corp decided to accept local deliveries (within Philippines)

 Give a 10% discount as celebrating the first year anniversary

 Maintenance of the Tandem Storage Space page on Facebook and website

  Create a TV Commercial that will feature the competitive advantage of the products

among competitors

 Billboard advertisement near subdivisions

 Distribute flyers at or near subdivisions to target more households

2021 (3rd Year of Operation)

 Hire labors in order to double the production

 Improvement of the raw materials of the product including the woods and metals

used in the production

 Billboard advertisement near subdivisions

 Distribute flyers at or near subdivisions to target more households

 The BizTech Furniture Corp. will establish a new branch particularly here in

Olongapo

 BizTech Furniture Corp. will produce comparative advertisement in order to show

the advantages of the Tandem Storage Space among competitors

 BizTech Furniture Corp. will rent a stall intended to promote the Tandem Storage

Space to the public

2022 (4th Year of Operation)

 Arrow Card advertisement (in malls)

 Increase 5% to all products for the whole year. This to gain additional fund for the

purpose of buying company-owned machineries and other equipment. The fund

will help to produce more products in a certain period of time and likewise reduce

the labor cost

  Other size and design of the Tandem Storage Space will be introduced

 Hire labors for the new branch of BizTech Furniture Corp.

 The proponents decided to have a free delivery around the Philippines with a

minimum of 3 purchases of the product

 BizTech Furniture Corp. goes to another innovation which is the “360˚ swivel”,

where the table can rotate 360˚ from 120˚ before

 Make a Facebook and YouTube Advertisement

2023 (5th Year of Operation)

 BizTech Furniture Corporation will have a special offer of 30% discount for every

product, in commemoration for the 5Th year anniversary of the company. This is to

show the appreciation of the company to all loyal customers and never ending

support of the public

 Additional outlet outside the Municipality of Olongapo, preferably in Zambales

 BizTech Furniture Corp. gives 1 year warranty for the repair of the specific parts

of the product that has been damaged

 Commission a celebrity to promote the Tandem Storage Space

 Become the major distributor of multi-purpose chair and table around Olongapo

City

 Magazine Advertisement ( at real living best-selling home furniture’s in

Philippines)

 Put up a raffle draw for the celebration of the 5th Year of the Company