Night Caps Bar: Market Study

Night Caps Bar Chapter 3
CHAPTER III
MARKET STUDY
I. Introduction
Market study is a generally used term to describe the statement between
consumer and the business audience. That aims to increase the value of the company
or its merchandise or at its simplest raises the profile of the business and its product in
a public mind. The purpose of marketing is to induce behavioural change in the
receptive audience.
Market study by which a product or service is introduced and promoted to
potential customers. Without marketing your business may offer the best products or
services in your industry but none of your potential customers would know about it.
Without marketing, sales may crash and companies may have to close. Market trends
are the upward or downward movement of a market during a period of time. The
market size is more difficult to estimate if one is starting with something completely
new.
Market study is a necessary part of the business cycle. This is where you
present your product and make customers. Though the necessary protocol of
establishing the product is rooted in response to demand, there should always be an
effective marketing plan, strategies, and wide ranging product promotion. This will
enable you to determine the right path to head or promote the product that can attract
customers, and allowing you to take a spot in the market ground. A good marketing
plan will help the business to increase the odds against more experienced competitor
and newly emerging ones. The plan enables us to identify and take an action on any
25
trends and consumer preferences that other companies have overlooked, and to
develop and expand the own select group of loyal customers now ad I the future.
According to the updated census, it has a population of 2,956,726 people in
Western Pangasinan. The official number of registered voters in Pangasinan is
1,651,814. The western portion of the province is part of the homeland of the
Sambal people, while the central and eastern portions are the homeland of
the Pangasinan people.
POPULATION RATE
Table 8. Population
YEAR TOTAL
2015 89,708
2016 90,632
2017 93,351
2018 96,151
2019 97,288
A growing population can generate economic growth. The birth of
more people equates to a greater number of potential customers. Increased
purchases in products such as food, clothing, other related expenses, and
wants in the economy. As the population grows, so does economic spending.
26
Porter’s Five Forces Model
It is a business study model that helps to explain why various industries are able
to sustain different levels of profitability. The five forces are frequently used to
measure competition intensity, attractiveness, and profitability of an industry or
market.
Threat of New Entrants – LOW
In bar business, the threat of new entrants is low because of the costly and
various requirements that needed to comply. Aside from local requirements that
mandate by our municipality, it also requires BFAD Permit and registration in
Liquor Regulatory Board. Moreover, business people think twice before
entering in this kind of business because of the increase in excise tax that has a
big effect to the prices of liquor products that some consumers can’t avail. Thus,
the low threat of new entrants will result to higher number of customers of the
Night Caps.
Breakdown of Legal Requirements
Table 3.1 Requirements
Legal Breakdown Fees
Requirements
27
Community  Application Slip from Local Government P25.00
Tax Certificate Offices
(CTC)
Barangay  Application Form P50.00
Clearance  Application Fee
 Community Tax Certificate (CTC)

Contract of  Contract form that is needed to fill up by
Lease both parties.

Certificate of  Cover sheet
Registration  Reservation Payment confirmation
for Partnership  Articles of Partnership (AP)
(SEC)  Joint Undertaking to Change name

Land Tax  Filled-up form with the sellers and
Clearance buyer’s full name, real property
description and anticipated date of
possession or settlement.
Garbage Fee  Form from BPLO
Fire Safety  Endorsement from BPLO
Inspection  Photocopy of building permit and
Certificate assessment of occupancy permit fee
 Copy of Fire Insurance Policy

Sanitary  Copy of official receipt obtained from
Permit business permit payments.

SSS  R1A_SSSforms_Employment_report (list
Certification of employees).
 R1_SSSForms_ER_Registration
 L-
501_SSSForm_Specimen_Signature_Car
28
d sign by authorized Signatory:
 Original SEC Articles of Partnership and
by laws
 Copy of BIR Certificate of registration
 Copy of Mayor’s Permit

PhilHealth  er2 Philhealth (list of the employees)
Certification  er1 Philhealth(employer registration form)
 Copy of BIR certificate of registration

Pag-ibig  SSS R1 stamped received by SSS
Certification  Employer’s data form
 Copy of BIR certificate of registration
( BIR form 2303)
 Copy of SEC Articles of Partnerships
 First official receipt of the contribution.

Registration  BPLO Permit
of Liquor  BPLO Official Receipt & assessment
Regulatory  Copy of SEC Registration, Articles of
Board Partnership
 Photo of front and inside of
establishments
 Barangay clearance for liquor
 Contract of Lease
29
Bargaining Power of Supplier – LOW
As days goes by, the liquor industry is growing faster as the number of
drinkers is also growing. It is where liquors have stocks where ever you go that results
the bargaining power of supplier low. It is simply because Night Caps has no worries
in finding different liquors that can be used in producing a new taste of liquor. Night
Caps cannot be hold by any supplier because it has many alternative provider.
Bargaining Power of Customer—LOW
Because of the rising production of liquors, the customers have different choices
where bar they will choose. Night Caps has few competitors in Alaminos City. Before
entering in this industry, Night Caps studied about its competitors’ performance and
get their weakness as its opportunity. Night Caps mixed drinks and give relaxing
space as the customers’ wanted that they don’t experience in some bar business.
Threats of Substitute-LOW
The global alcoholic beverages market was valued $1,439 billion in 2017, and
expected to reach $1,684 billion by 2025. Businesses that entered in this industry
create their own specialties to differ with other liquor businesses. The possible
substitutes for alcohol recipes are lemon, calamansi, strawberries, pineapple and more
other that may substitute for liquor. Therefore because of the low threat from
30
substitution, the competition will be lessen among the existing firms and the potential
earnings increase profits.
Target Market
Table 3.2 Age Distribution in Alaminos City
Age Distribution
0-10 yrs. old 21.12%
11-19 yrs. old 20.04%
20-29 yrs. old 15.83%
30-39 yrs. old 13.59%
40-49 yrs. old 11.63%
50-59 yrs. old 8.53%
60-69 yrs. old 5.42%
70-79 yrs. old 2.69%
80 yrs. old and above 1.15%
*Note: Pro-rata was used from 10-19 years old to 80 years and above to
identify the rate of population of our target market that are ranging from 18
years old and above.
31
Results in Survey
A survey is a series of questions in order to gather information about what most
people think about something. Survey is a great tool to find out essential information
from customers. It show us information and answers to our question about the
customers want and interest.
The results of the survey responded by 200 respondents from the small and
big stablishment and other persons here in Alaminos City. This are shown
below:
Profile of the Respondents in Term of Age
Aiming to measure the ratio of respondent’s age that founds our sample
population. The results are shown below:
Table 3.3 Age
AGE FREQUENCY PERCENTAGE

18-30 127 63.5%
31-40 47 23..5%
41-50 18 9%
51 & above 8 4%
Total 200 100%
From the gathered data of the survey questionnaire defined the age of the
respondents. Out of 200 respondents, 127or 63.5% said that they are within the age
bracket of 18-30, 47or 23.5% said that they are within the age bracket of 31-40, 18 or
9% said that they are in the age bracket of 41-50, and 8 or 4% said that they are in the
age bracket of 51 above.
32
Frequency distribution of people who try to drink in a bar
The variable’s aim is to measure the ratio of the people who try to drink in a
bar. The results are shown below:
Table 3.4 Drinkers
DRINKERS FREQUENCY PERCENTAGE

Yes 138 69%
No 62 31%
Total 200 100%
From the gathered data of the survey questionnaire defined the frequency of
respondents that try to drink liquors in a bar. Out of 200 respondents, 138 or 69% said
that they try to drink in a bar and the 62 or 31% said that they not try to drink in a bar.
Profile of the Respondents in Terms of Societal Status
This variable aims to measure the ratio of the respondents under their Societal
Status. The results are shown below:
Table 3.5 Status
STATUS FREQUENCY PERCENTAGE

Students 59 29.5%
Working Students 36 18%
Employed 84 42%
Unemployed 21 10.5%
Total 200 100%
33
From the gathered data of the survey questionnaire defined the frequency and
percentage of the societal status of the respondents. Out of 200 respondents, 59 or
29.5% said that they are students, 36 or 18% said that they are working students, 84 or
42% said that they are employed, 21 or 10.5% said that they are unemployed.
Profile of the Respondents in Terms of Daily Budget
This variable aims to measure the ratio of the respondents under their Daily Budget.
The results are shown below:
Table 3.6 daily budget
DAILY BUDGET FREQUENCY PERCENTAGE

100-200 47 23.5%
201-300 86 43%
301-400 42 21%
401-500 16 8%
501 and above 9 4.5%
Total 200 100%
From the gathered data of the survey questionnaire defined the frequency and
percentage of Daily Budget of the respondents. Out of 200 respondents, 47 or 23.5%
said that they are within 100-200 Daily Budget, 86 or 43% said that they are within
201-300, 42 or 21% said that they are within 301-400 Daily Budget, 16 or 8% said
that they are within 401-500 Daily Budget, 9 or 4.5% said that they are within 501
and above Daily Budget.
Frequency distribution of how often people go to bar
The variables aims to measure the ratio of how often people go to bar. The results are
shown below:
34
Table 3.7 Response
RESPONSE FREQUENCY PERCENTAGE

Once a week 68 49.28%
Twice a week 44 31.88%
Once a month 26 18.84%
Total 138 100%
From the gathered data of the survey questionnaire how often people go
to bar. Out of 138 respondents, 68 or 49.28% said that they go to bar once a
week, 44 or 31.88% said that they go to bar twice a week, 26 or 18.84% said
that they go to bar once a month.
Frequency distribution of people that willing to drink and try to go in a new bar
The variables aim to measure the ratio of where people that willing to drink and try to
go in a bar. The results are shown below:
Table 3.8 Response

YES 154 77%
No 46 23%
Total 200 100%
35
From the gathered data of the survey questionnaire where people want to
drink and try to go in a new bar. Out of 200 respondents, 154 or 77% said that
they want to drink and try to go in a bar, 46 or 23% said that they don’t want to
drink and try to go in a new bar.
Frequency distribution of what is your budget if you want to go in a bar
The variables aims to measure the ratio of what is their budget if they want to
go in a bar. The results are shown below:
Table 3.9 Response

100-200 39 25.32%
201-300 68 44.16%
301-400 27 17.53%
401-500 13 8.44%
501 and above 7 4.55%
Total 154 100%
From the gathered data of the survey questionnaire of what is their
budget if they want to go in a bar? Out of 154 respondents, 39 or 25.32% said
that they spent 100-200 in a drink, 68 or 44.16% said that they spent 201-300 in
a drink, 27 or 17.53% said that they spent 301-400 in a drink, 13 or 8.44% said
that they spent 401-500 in a drink, and 7 or 4.55% said that they spent 501 and
above in drink.
Frequency distribution of what alcoholic and non-alcoholic drinks most
people may prefer
The variables aims to measure the ratio of what alcoholic and non-alcoholic
drinks most people may prefer. The results are shown below:
36
Table 3.10 Drinks
DRINKS FREQUENCY PERCENTAGE

Beer: 59 38.31%
Cocktails: 22 14.29%
Mock tails: 27 17.53%
Others/Special Drinks 46 29.87%
TOTAL 154 100%
From the gathered data of the survey questionnaire how what are the
liquors/alcohol people usually drink. Out of 154 respondents, 59 or 38.31% said
that they usually drink beer, 22 or 14.29% said that they usually drink cocktails,
27 or 17.53% said that they usually drink mock tails, and 46 or 29.87% said that
they prefer drinking other or special drinks.
Frequency distribution of which appetizers do people may prefer in
Alcoholic and Non-Alcoholic drinks
The variables aims to measure the ratio which appetizers do people may
prefer in Alcoholic and Non Alcoholic drinks. The results are shown below:
Table 3.11 Prefer Appetizers
APPETIZERS FREQUENCY PERCENTAGE
Ala Bangus Sisig 18 11.69%
Special Natchos 15 9.74%

Cheezy Fries with Ham 23 14.94%
Toasted Grilled BBQ 49 31.82%
Nilasing na Hipon 12 7.79%
Hot and Spicy ,Peanuts 37 24.02%
TOTAL 154 100%
37
From the gathered data of the survey questionnaire which appetizers
people usually orders? Out of 154 respondents, 18 or 11.69% said that they
prefer ala bangus sisig, 15 or 9.74% said that they prefer with special nachos, 23
or 14.94% said that they prefer cheezy fries with ham, 49 or 31.82% said that
they prefer toasted grilled barbeque, 12 or 7.79% said that they prefer nilasing
na hipon, 37 or 24.02% said that they prefer hot and spicy peanuts.
The results of the survey responded by 200 respondents from the
tourist/guest in the hotels/transient houses here in Alaminos City. The
results are shown below:
Frequency distribution of guest/tourist staying overnight in the

hotel/transient house.
The variables aims to measure the ratio of guest/tourist staying overnight in the
hotel/transient house.The results are shown below:
Table 3.12 Distribution of guest Staying overnight in hotel/transient

YES 152 76%
NO 48 24%
Total 200 100%
38
From the gathered data of the survey questionnaire of guest/tourist staying
overnight. Out of 200 respondents, 152 or 76% said that they are staying overnight,
48 or 24% said that they are staying overnight.
Frequency distribution of guest/tourist staying two night in the

hotel/transient house.
The variables aims to measure the ratio of guest/tourist staying two night in the
hotel/transient house.The results are shown below:
Table 3.13 distribution of guest staying 2 nights in hotels/transients

YES 124 81.58%
NO 28 18.42%
Total 152 100%
From the gathered data of the survey questionnaire of guest/tourist staying two
rnight. Out of 152 respondents, 124 or 81.58% said that they have are staying for two
nights, 28 or 18.42% said that they are staying for two nights.
Frequency distribution of guest/tourist that are willing to go for a bar
happing.
The variables aims to measure the ratio of guest/tourist that are willing to go for
a bar happing. The results are shown below:
Table 3. 14 Willing to go bar

YES 88 70.97%
NO 36 29.03%
Total 124 100%
39
From the gathered data of the survey questionnaire of guest/tourist staying two
rnight. Out of 124 respondents, 88 or 70.97% said that they have are staying for two
nights, 36 or 29.03% said that they are staying for two nights.
Frequency distribution of guest/tourist in there general aging range.
The variables aims to measure the ratio of guest/ tourist in there general
aging range. The results are shown below:
Table 3.15 general aging range

ELDER 69 34.5%
YOUNG 131 65.5%
PROFESSIONAL
Total 200 100%
From the gathered data of the survey questionnaire of guest/tourist in there
general aging range. Out of 200 respondents, 69 or 34.5% said that they are elder, 131
or 65.05% said that they are young professional.
Demand Analysis
In demand analysis, it is essential for a business firm to identify and
measure the forces that determine sales. It must extent the production and the
cost allocation depend on the demand analysis. Pricing and inventory holdings
is essential. Demand analysis helps in sales forecasting and profit planning.
Without this study, new product policy and advertisement policy cannot be
drawn. Research and developments strategy cannot be framed without demand
40
analysis. This study is the basis of tracing the trend of the firm’s competitive
analysis.
Historical Demand
In computing for historical and potential demand from 2015 - 2020, the
proponents multiplied the population to target market percentage and multiplied
it again to percentage of target markets that are willing to try our products
and/or services. The results are shown below:
PROJECTED DEMAND
Projected demand is a systematic measure that helps to forecast the firm in better
planning related to the business. For the purpose of this study, the proponents used a
five- year projection of the anticipated demand. To compute for the five- year
projected demand, the proponent first computed the average annual increase in
demand using a straight line formula, as follows:
Table 3.16 Historical Population
41
HISTORICAL POPULATION (2015-2019)

Tourist Arrival Househol
d-
Foreig Alaminos
Year Local n Total City Population
2015 350,162 14,416 364,578 19,871 89,708
2016 437,304 13,927 451,231 20,075 90,632
2017 543,834 18,075 561,909 20,282 93,351
2018 533,458 14,032 547,490 20,491 96,151
2019 539,219 14,183 553,402 20,702 97,288

Annual Growth
Rate 1.08% 1.03% 1.03%
Alaminos City Tourism
CPDC CPDC
Source: Office
*It is according to the City Tourism of Alaminos
Table 3.17. Historical Demand 2015
HISTORICAL DEMAND 2015 (BAR-HOUSEHOLD and ESTABLISHMENT)

Historica Operatin
l Potenti g Total
Populatio Rate of al wk./days/ Consu Error Deman
n 2015 Willing demand mos. mption Rate d
15, 1
499 77% 1,934
Operatin
Potenti Projecte g
Frequen al d wk./days/
cy Rate demand Demand mnth E F G
F=D*
A B C=A*B D E=C*D E G=E*F
Once a 1 29
week 49.28% 1,934 5,881 51 9,935 90% 269,941
Twice a 1 36
week 31.88% 1,934 3,805 96 5,238 90% 328,714
Once a 1
month 18.84% 1,934 2,248 12 2,248 90% 2,024
Total Historical Demand, 2015 600,679
Table3.18 Historical Demand 2016
42
Operatin Con
Historical g sum Err
Population Rate of Potentia wk./days/ ptio or Total
2016 Willing l demand mos. n Rate Demand
12,
15,659 77% 057
Operatin
Projecte g
Potentia d wk./days/
Frequency Rate l demand Demand mnth E F G
E=C
A B C=A*B D *D F G=E*F
12, 5, 5 303, 272,

Once a week 49.28% 057 942 1 026 90% 724
12, 3, 9 369, 332,

Twice a week 31.88% 057 844 6 002 90% 102
12, 2, 1 2,27 2,
Once a month 18.84% 057 272 2 2 90% 044
606,
Total Historical Demand, 2016 870

Historic Rat
al e of Operating Err
Populati Willi Potential wk./days/m Consum or Total
on 2017 ng demand os. ption Rate Demand
1 1
5,820 77% 2,181
Projecte Operating
Frequen Rat Potential d wk./days/m
cy e demand Demand nth E F G
F=D
A B C=A*B D E=C*D *E G=E*F
Once a 49.28 12 306, 27
week % ,181 6,003 51 143 90% 5,528
Twice a 31.88 12 372, 33
week % ,181 3,883 96 797 90% 5,517
Once a 18.84 12 2,
month % ,181 2,295 12 295 90% 2,065
Total Historical Demand, 61
2017 3,111
43

Rat Operatin Er
e of Potenti g ror Total
Historical Willi al wk./days/ Consum Rat Deman
Population 2018 ng demand mos. ption e d
1
15,983 77% 2,307
Project Operatin
Potenti ed g
Rat al Deman wk./days/
Frequency e demand d mnth E F G
A B C=A*B D E=C*D F G=E*F
49.2 12, 5 30 90 278
Once a week 8% 307 6,065 1 9,309 % ,378
31.8 12, 9 37 90 338
Twice a week 8% 307 3,923 6 6,653 % ,988
18.8 12, 1 90 2
Once a month 4% 307 2,319 2 2,319 % ,087
619
Total Historical Demand, 2018 ,453
Historic Rate Poten

al of tial Operating Erro
Populati Willi dema wk./days/mo Consump r Total
on 2019 ng nd s. tion Rate Demand
16,148 77% 12,434
Poten
tial Operating
Frequen dema Projected wk./days/m
cy Rate nd Demand nth E F G
F=D
Once a 49.28 312, 28
week % 12,434 6,127 51 501 90% 1,251
Twice a 31.88 380, 34
week % 12,434 3,964 96 540 90% 2,486
Once a 18.84 12,434 2343 90%
44
month % 2,343 12 2,108

2019 5,845
Table 3.22 Historical Demand 2015
HISTORICAL DEMAND 2015 (BAR-TOURIST)
Potential
Rate Potent Demand Err
Historical of ial (Potential Operating or
Populatio Willi deman Visit wk./days/m Consumpti Rat Total
n 2018 ng d *85%) os. on e Demand
70.97 258,74 219,
364,578 % 1 930
Potent
ial Operating
Frequenc deman Projected wk./days/m
y Rate d Demand nth E F G
Once a 49.28 258,74 127,5 6,502, 5,852,
week % 1 08 51 886 90% 597
Twice a 31.88 258,74 82,4 7,918, 7,126,
week % 1 87 96 717 90% 845
Once a 18.84 258,74 48,7 43,
month % 1 47 12 48747 90% 872
45
Potential
Historic Rate Potent Demand
al of ial (Potential Operating Erro
Populati Willi dema Visit wk./days/ Consump r Total
on 2016 ng nd *85%) mos. tion Rate Demand
70.97 320,23 27
451,231 % 9 2,203
Potent
ial Operating
Frequen dema Projected wk./days/
cy Rate nd Demand mnth E F G
F=D
Once a 49.28 347,44 171, 8,732, 7,85
week % 8 222 51 341 90% 9,107
Twice a 31.88 347,44 110, 10,633, 9,57
week % 8 766 96 577 90% 0,219
Once a 18.84 347,44 65, 58
month % 8 459 12 65459 90% ,913
Total Historical Demand, 17,48
2016 8,239

Potential
Rate Potent Demand Err
Historical of ial (Potential Operating or
Populatio Willi deman Visit wk./days/m Consumpt Rat Total
n 2017 ng d *85%) os. ion e Demand
70.97 398,78 338,
561,909 % 7 969
Potent
ial Operating
Frequenc deman Projected wk./days/m
y Rate d Demand nth E F G
Once a 49.28 432,67 213,2 10,874, 9,786,7
week % 0 20 51 209 90% 88
Twice a 31.88 432,67 137,9 13,241, 11,917,
week % 0 35 96 779 90% 601
Once a 18.84 432,67 81,5 73,3
month % 0 15 12 81515.03 90% 64
46
Potential
Historical Demand
Population Rate of Potential (Potential Visit Operating Consumptio Error
2018 Willing demand *85%) wk./days/mos. n Rate
330,27
547,490 70.97% 388,554 1
Potential Projected Operating

Frequency Rate demand Demand wk./days/mnth E F
A B C=A*B D E=C*D E=C*D
Once a week 49.28% 421,567 207,748 51 10,595,159 90%
Twice a week 31.88% 421,567 134,396 96 12,901,974 90%

Once a month 18.84% 421,567 79,423 12 79,423 90%
Potential
Historica Rate Potent Demand Err
l of ial (Potential Operating or
Populati Willi deman Visit wk./days/ Consumpt Rat Total
on 2019 ng d *85%) mos. ion e Demand
70.97 371,11 315,
522,917 % 4 447
Potent
ial Operating
Frequenc deman Projected wk./days/
y Rate d Demand mnth E F G
Once a 49.28 426,12 209, 10,709 9,638,6
week % 0 992 51 ,589 90% 30
Twice a 31.88 426,12 135, 1,630 1,467,1
week % 0 847 12 ,165 90% 48
Once a 18.84 426,12 80, 72,2
month % 0 281 80281 90% 53
Total Historical Demand, 11,178,
2019 031
47
Annual Increase in Sales = Historical demand 2019 – Historical demand 2015
Number of year- 1
625,845-600,679
5-1
= 25,167
11,178,031-13,023,314
5-1
1,845,283
Table 3.27 Household and tourist average annual increase
BAR-HOUSEHOLD BAR-TOURIST
AVERAGE ANNUAL INCREASE AVERAGE ANNUAL INCREASE
48

Historical Demand 2019 625,845 Historical Demand 2019 11,178,031

Less: Less:
Historical Demand 2015 600,679 Historical Demand 2015 13,023,314

-
25,167 1,845,283
Divided by No. of yrs -1 4 Divided by No. of yrs -1 4

Average Annual Average Annual -
Increase 6,292 Increase 461,321
After ascertaining the average annual increase in demand, we can compute the
projected demand by adding the average annual demand into each base year demand
as shown in the table below.
Table 3.28 Projected demand household
PROJECTED DEMAND 2020-2024 BAR-HOUSEHOLD

Year Demand Annual Increase Projected Demand
2019 136,944 136,944
2020 136,944 6,292 143,236
2021 143,236 6,292 149,527
2022 149,527 6,292 155,819
2023 155,819 6,292 162,111
2024 162,111 6,292 168,402
Table
3.28
Projecte
49
demand
tourists
PROJECTED DEMAND 2020-2024 BAR-TOURISTS
Year Demand Annual Increase Projected Demand
2019 11,178,031 11,178,031

-
2020 11,178,031 461,321 10,716,710
-
2021 10,716,710 461,321 10,255,389
-
2022 10,255,389 461,321 9,794,069
-
2023 9,794,069 461,321 9,332,748
-
2024 9,332,748 461,321 8,871,427
. Table 3.29 Projected Supply household
PROJECTED SUPPLY 2020-2014 BAR-HOUSEHOLD

Year Historical Supply Annual Increase (5%) Projected Supply
2019 975 - 975
2020 975 49 1,024
2021 1,024 51 1,075
2022 1,075 54 1,129
2023 1,129 56 1,186
2024 1,186 59 1,245
. Table 3.30 Projected
Supply Tourists
PROJECTED SUPPLY 2020-2014 BAR-TOURIST

Year Historical Supply Annual Increase (5%) Projected Supply
2019 72,975 - 72,975
2020 72,975 3,649 76,623
2021 76,623 3,831 80,455
2022 80,455 4,023 84,477
50
2023 84,477 4,224 88,701

2024 88,701 4,435 93,136
. Table 3.31 Projected Supply household
DEMAND AND SUPPLY ANALYSIS 2020-2024 (BAR-HOUSEHOLD)

Year Projected Demand Projected Supply Target Sales(Units)
2020 143,236 1,024 142,212
2021 149,527 1,075 148,452
2022 155,819 1,129 154,690
2023 162,111 1,186 160,925
2024 168,402 1,245 167,158
. Table 3.32 Projected Supply tourist
DEMAND AND SUPPLY ANALYSIS 2020-2024 (BAR-TOURIST)

Year Projected Demand Projected Supply Target Sales(Units)
202
0 10,716,710 76,623 10,640,087
202
1 10,255,389 80,455 10,174,935
202
2 9,794,069 84,477 9,709,591
202
3 9,332,748 88,701 9,244,047
202
4 8,871,427 93,136 8,778,291
According to the gathered data, projected supply from 2019-2024 was taken
by multiplying the historical supplies in units (A) and normal rate (B) to get the
projected units increase (C) and then add the historical supplies in units (A) to get the
projected supply (D).
. Table 3.33 Bar Allocation Supply
BAR ALLOCATION OF SUPPLY

Allocation: Tourist Household TOTAL
Demand for 10,859,94

2020 10,716,710 143,236 6
51
Pro-rata 99% 1%
Supply 203,490 203,490

Allocated
supply 201,455 2,035 203,490
Supplies
Product per TOTAL
week
Ala Bangus Sisig 150 51 7,650
Special Nachos 100 51 5,100
Cheesy Fries with ham 200 51 10,200
Toasted Grilled Barbecue 500 51 25,500

51
Nilasing na Hipon 100 5,100
Hot/Spicy Roasted
51
Peanuts 400 20,400
TOTAL 1,450 73,950
Table 3. 34 Product supplies
PRODUCTS SUPPLIES
PER WEEK TOTAL
Gin Mojito 50 51 2,550
Gin Negroni 50 51 2,550
Brandy Cobbler 60 51 3,060
Pink Panther 40 51 2,040
Teddy Cherry Bear 40 51 2,040
Sex on the beach 80 51 4,080
Brandy Alexander 70 51 3,570
Whit Russian 50 51 2,550
Chocolate Milk 80 51 4,080
50 51 2,550
Watermelon
Holiday Shirley 50 51 2,550
Honey My Love Drop 80 51 4,080
52
Baby Blue Eyes 60 51 3,060

Spicy Watermelon Mint 80 51 4,080
San Mig Light 200 51 10,200
San Mig Flavored 350 51 17,850
San Miguel Pilsen 200 51 10,200
Red Horse 500 51 25,500
San Mig Cerveza Negra 150 51 7,650
Ginger Ale 100 51 5,100
TOTAL 2,340 129,540
Market Share
. Table 3.35 Market Share
Night Caps
Total Sales 203,490

No. of
Competitor 5
Ave. Sales 40,698
Total Sales 203,490

Multiplied to 100
Market
share(%) 20.00%
Figure
Sales
4.
Sale.
20%
BarTech 20%
Competitors 80%
80%
53
Note: The proponents did not state the exact amount of their total units due to
confidentiality
POWER OF SUPPLIER
Table 3.36 Competitors
Competitors Sales Daily Units Total

Hidden Garage 7,000 117 bottles 42,120
Silver’s Cafémarket by 11,000 183 bottles 65880
Gold
Mermaid’s Cafe 3,000 50 bottles 18,000
D’Mini Stop 8,900 148 bottles 53,280
Along D’Rod 7,000 117 bottles 42,120
Note: Daily units= sales ÷ 60pesos (per bottle)
Total annual units= Daily Units x 30days x 12 months
Table 40. Cost and Benefits Marketing Strategy
Promotion Cost Advantages

Facebook Page ₱0  Low cost marketing strategy
 Can share basic information about
business
 Can share picture and videos
 Raise brad awareness and promote
positive word of mouth

Tarpaulins 3ft.x2ft.-  Protect from sunlight and rainfalls
P220  It gives information about product and
5ft.x6ft.- services
P400  Can grab the chance to get
6ft.x4ft.-580 noticedpotential customers

Flyers ₱.75 each  Easily readable
54
 Affordable tool
 Able to reach more people

Discounts offered -  Attracts new and repeat customers
in some product  Meet sales goals
 Boost Reputations
Packages deals ₱500~20,500  An opportunity of a customer
offered  To lessen the costs of a products

Signboard ₱1,000  Display name, logo, or ay advertising
news
 It helps to locate the business

Website ₱0  Can educate customers
 Improve productivity
 Easy access to new buyers
Market Description
A good marketing plan will help your business do the following:
1. Identify the target market
2. Understand the industry and the competition
3. Establish the pricing and product positioning, and
4. Establish in effective marketing concept
Area Analysis
55
The feasibility of Bartech is generally influenced by the existing social,
economic, government and environmental forces in the surrounding area. The subject
site is located at Sadsaran, Alaminos City, Pangasinan, besides Northpoint, and along
the high way. The location is our advantage because it’s located near at the town of
the City which people go through.
Economic Aspect
Economic consideration relate to the financial capacity of a market areas
population and their ability to purchase goods and services. The company can provide
supplementary earnings to the economy. It will create additional job opportunities due
to its essential factor of having man power. Unemployment rate will be decrease and
poverty crises will be minimized.
Government Aspect
In putting up a business, a lot of requirements is considered. Business permit
and licence are required for its legal operation. Application for permits and licences
are one way for the government to earn funds that will support their expenditures.
Also through the payment of taxes, the company will pay additional earnings for the
government that they will utilize for the continuous improvement of the government
projects.
56
Environmental Aspect
Environmental considerations consist of any natural or man-m ade features
that are contained in or affect the market area and its location.
Target Market
The target market of this study is for people who want to be chill and want to
experienced enjoyment. Millennial is the one of the most target market of this study.
Nowadays people at the age of 18 and above are drinkers. Target market include
residences from Alaminos City, Pangasinan and Tourist that came from other places.
II. Marketing and Sales Strategies 4P’s
Bartech being a new entrant here in Alaminos competing with the existing
businesses in the handed thing to be faced by the company and the management as a
whole. That is why we will have a proper plot and the best marketing and sales
strategies that would help to compete to the existing business and also to be able to
penetrate its intended target market.
PRODUCT
Bartech is a new bar that will be establish in Alaminos City. The business will
offer a different taste of drinks that will surely meet the expectation of our customers.
PRICE
Price has a lot of impact on the service buyer’s satisfaction level. In every
payment of the customers, we will assure that the quality of our products can meet to
57
their satisfaction. Bartech will make sure that the prices of our products are affordable
and conforms to the good drinks and quality services to satisfy the customers.
PLACE
Location will be treated as home based of our proposed business. Bartech is
located at Sadsaran Alaminos City, Pangasinan at North point. The location is one of
our advantage because it is located near of the center of the City which people go
through.
PROMOTION
Promotion plays a role in the perception. The possible target audience may
have about your services. Promotion leads to services (brand) recognition and further
establishes a proxy to evaluate quality of services based by potential customers. Many
different promotional tools are often used like internet advertisement, special event,
and endorsements which happen out of the store or in-store merchandising.
1.Tarpaulins
Tarpaulins will be placed in the strategic areas in Alaminos City, especially
along major through fares to attract customers to visiting the bar and experience
enjoyment and service that the company offering.
Figure 5. Tarpaulins
58
2. Facebook Page
Facebook page is a site to promote our drinks and services in social media and
according to the survey conducted by the Digital Global Overview, people nowadays
spending a lot of time using social media. Because of the social media especially
Facebook, many people can be a market to our bar and it will help our advertisement.
Figure 6. Website
59
3. Flyers
One of the most effective and affordable tool that can be used to promote the
information about the bar, especially to the location and for the contact number. It
may give out to the large scale of market o strategic area and ay time of the day.
Figure 7. Flyers
PEOPLE
People are crucial in service delivery. The drink may not seem equally
palatable if the
60
waitress is in the sour mood. A smile always help. Intensive training for our human
resources on how to handle customers and how to deal with contingencies is crucial
for our success.
PROCESSES
Processes are important to deliver a quality services being intangible,
processes become all the more crucial to insure standards are met with. Process
mapping insure that your service in perceived as being dependable by our target
segment.
PHYSICAL EVIDENCE
Physical evidence affects the customer’s satisfaction. Customers defend on
other cues to judge the offering. This is where physical evidence plays a part. It is
about how the customer expect in the service and the product. Bartech will assure that
the expectation of the customers will not fail. The company will work and provide
what they want and meet their expectations.Services marketing stays incomplete
without understanding of 7 Ps. These are the forms of crucial success, factors for any
service as evaluated by possible customers.
COMPETITION
In every business there are always competition. Competition makes companies
seek for plan and strategies that provide competitive advantage over competitors. Our
61
company provide services that our competitors don’t have and we will give them a
better experience that make fell them enjoy and satisfied.
HIDDEN GARAGE AND RESTO BAR
Figure 3.1 Hidden Garage
The Hidden Garage is located at CP, Garcia Street, Poblacion, Alaminos City,
Pangasinan. They usually open at 9am-10pm. Their strength is their location because
it is near from town. The design can attract the eyes of the customers because of the
creativity. Their weakness is in terms of pricing. Their opportunities is the continuous
growing of population in Alaminos considering that it is a city, plus this place become
one of the popular place in Pangasinan. Their threats are the tax, upcoming
competitors, and liquor bands.
62
SILVER CAFÉ AND BAR BY GOLD
Figure 9.. Silvers
The Silvers Café & Bar is located at Plaza Enrique Braganza Poblacion,
Alaminos City and is by Ms. Gold Rabadon. It is open from 8:00AM till 12:00
midnight and is secured with CCTV camera for the safety of the customers.
Silvers Café and Bar offers entertainment by playing music with their speakers
and is known with their specialty pork sisig and nachos. Silvers Café and Bar
have their strengths of their location being located at the business central district
wherein many people are passing by and the near to business establishment and
college campuses. The location itself can get customers if there are night events
in Plaza Braganza. Its weaknesses are that it offers limited type of liquors, its
parking lot is too narrow and the
space for customers is also
narrow. The opportunities may
rely on increasing number of
youth drinker’s, increasing
population rate and future
63
events in the town proper. The threats will depend on excise tax on alcohol
products and liquor ban.
MERMAID’S CAFÉ AND BAR
Figure 10. Mermaid’s Café and Bar
The location of Mermaid’s Café and Bar is at Brgy. Lucap, Alaminos
City. It is usually open from Monday to Friday at 2:00 pm to 11:00 pm and is
secured with a CCTV camera for the safety of the customers. Mermaid’s Café
and Bar offers entertainment with their live band performance and is known for
their specialty Tapa Kalabaw. Mermaid’s Café and Bar has a cozy and high
64
class atmosphere because of its interior design that makes the place classy. Its
strengths are its location being a tourist spot, wide space for customer and offers
a wide variety of liquors both local and imported as well as cocktails. Its
weaknesses is high pricing of their liquors and the large number of tourists are
seasonal. Their opportunities are based on increasing number of tourist,
increasing number of youths chilling out at night and increasing number of
population rate. Their threats may be based on occurrence of typhoons, excise
tax on alcohol products and liquors ban.
D’MINI STOP FOOD HAUZ
Figure 11. D’ Mini Stop
65
The MiniStop is located
at Poblacion Alaminos City near the
C&H Hospital and is owned by Mr. Antonio Romano Jr. It is open the whole
week from 4:00 PM till 3:00 AM and is secured with a CCTV camera for the
safety of the customers. MiniStop offers entertainment through videoke, they
also offer different pulutan. MiniStop strengths are its location since it is along
the highway, they have been patronized and advertised by their regular
customers through the use of social media and they also accept reservation of
tables as well as reservation for the whole place for special events. It is already
a well-known bar because of its long run operation. Their weaknesses includes
offering limited type of liquors, its narrow parking lot and small space for large
number of customers. Their opportunities rely on increasing number of youth
drinkers and increasing population rate. The threats in their business will be the
liquor ban and the excise tax on alcohol products.
ALONG D’ ROD
66
Figure 12. Along D’Rod
The Along D’ Road is located at Brgy. Tanaytay, Alaminos City near
LTO. It is open from Sunday to Saturday at 8am- 12 am. They have big kubo’s
that can accommodate 15 persons per kubo, Its strengths are its location being
like you are in the beach of Patar and you are like visiting the Hundred Islands
because of the atmosphere, wide space for customer and offers a variety of
beers. Its weaknesses is high pricing of their products and their services are
slow. Their opportunities are based on population growth, increasing number of
youths chilling out at night. Their threats may be based on fortuitous event,
excise tax on alcohol products and liquors ban.
SWOT ANALYSIS
Table 41. S.W.O.T Analysis

67
Strength Weaknesses
1. Well trained staffs 1. Changeable cost of ingredients
2. Can go through on trends 2. Limited source of some supplies
3. Product look high class but affordable 3. Location of suppliers
4. Space
5. Location
6. Entertainment Activities
7. Promos/Packages
Opportunities Threats
1. Product innovation 1. Fortuitous events
2. Market expansion 2. New Competitors
3. Heart of the town 3. Taxation
4. Holidays 4. Liquor band
5. Drinkers Growth
III. Competitive Edge
Figure 13. Competitive Edge
68
Competitive edge is making the business unique and remain with its
competitors. BarTech is the first bar in the area with unique cocktails and
mocktails. One of those products is the kelp. It offers single servings, bucket
combos and tower combos to its customer which is not offered by its
competitors. Bartech also, will provide different entertainment activities which
is surely what customers to be wanted. Bar offers mixed beverages, some has
liquors which is a bit lower in price than the other competitors. Therefore, the
idea of this BarTech might be effective through the help of these competitive
edges.
IV. Synthesis
This chapter was all about marketing learning in which it was divided
into 5 parts namely the introduction, porters 5 forces, competitive edge, m
arketing strategies and the summary. The marketing aspect is one of the
most important to be considered. Because it describes market conditions where
the product can be recognized through the demand analysis. In the introduction,
the location was discussed thoroughly as well as the annual report of tourist
visits in Alaminos City, Alaminos City as a famous tourist spot doubled the
number of visitors from 2015 to up to now.
69
The Porter’s five forces which includes the threat of new entrants, threat of
substitution, Power of customers, power of suppliers, and competitive rivalry.
Threat of New entrants provides the process of registering for new business.
Threat of substitution provides the possible entities that the customer may
choose as a substitute such as the fast food chains and resorts that can also offer
relaxing and unwinding services. Power of customers discussed the capability of
the customers to purchase the offered products as well as the rate of demand.
Power of suppliers concerns with the capability of suppliers to supply the
products to the entities for their long run operations. Competitive Rivalry
provides the SWOT analysis of competitors which will give the BarTech ideas
on the tactics and systems to surpass these existing customers.
Competitive Advantage
Competitive Edge is the key of a business over its competitors for them
to success, it discuss here the what the BarTech have that don’t have in others
which is about being new to the area because of the every advantage counts to
establish the business in the top of the industry. Then, gaining a competitive
advantage takes strategic planning, extensive study and an investment in
marketing.
70

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Night Caps Bar Chapter 3

Market study is a generally used term to describe the statement between

a public mind. The purpose of marketing is to induce behavioural change in the

Market study by which a product or service is introduced and promoted to

establishing the product is rooted in response to demand, there should always be an

According to the updated census, it has a population of 2,956,726 people in

Western Pangasinan. The official number of registered voters in Pangasinan is

1,651,814. The western portion of the province is part of the homeland of the

A growing population can generate economic growth. The birth of

more people equates to a greater number of potential customers. Increased

purchases in products such as food, clothing, other related expenses, and

wants in the economy. As the population grows, so does economic spending.

Porter’s Five Forces Model

measure competition intensity, attractiveness, and profitability of an industry or

Threat of New Entrants – LOW

mandate by our municipality, it also requires BFAD Permit and registration in

Liquor Regulatory Board. Moreover, business people think twice before

Breakdown of Legal Requirements

Table 3.1 Requirements

Legal Breakdown Fees

Community  Application Slip from Local Government P25.00

Tax Certificate Offices

Clearance  Application Fee

 Community Tax Certificate (CTC)

Lease both parties.

Registration  Reservation Payment confirmation

for Partnership  Articles of Partnership (AP)

(SEC)  Joint Undertaking to Change name

Clearance buyer’s full name, real property

description and anticipated date of

Inspection  Photocopy of building permit and

Certificate assessment of occupancy permit fee

 Copy of Fire Insurance Policy

Permit business permit payments.

d sign by authorized Signatory:

 Original SEC Articles of Partnership and

 Copy of BIR Certificate of registration

 Copy of Mayor’s Permit

Certification  er1 Philhealth(employer registration form)

 Copy of BIR certificate of registration

 Copy of Mayor’s Permit

Certification  Employer’s data form

 Copy of BIR certificate of registration

( BIR form 2303)

 Copy of Mayor’s Permit

 Copy of SEC Articles of Partnerships

 First official receipt of the contribution.

of Liquor  BPLO Official Receipt & assessment

Regulatory  Copy of SEC Registration, Articles of

 Photo of front and inside of

 Barangay clearance for liquor

Bargaining Power of Supplier – LOW

Bargaining Power of Customer—LOW

earnings increase profits.

Table 3.2 Age Distribution in Alaminos City

years old and above.

A survey is a series of questions in order to gather information about what most

customers want and interest.

Profile of the Respondents in Term of Age

population. The results are shown below:

Table 3.3 Age

AGE FREQUENCY PERCENTAGE