15

Chapter 2

MARKET ASPECT

In this chapter, the researcher discusses the market-related aspects

of the proposed business. This includes the products and services to be

offered, the market research analysis which explains the target market, the

market size, and trends, the competition, the estimated market share, and

the marketing strategies which include the sales and distribution, the

pricing strategy and the promotion strategy.

2.1 Business Description

Italian Restaurant in the Sky serves Italiannis 30 feet above the

ground. It allows the customers enjoy a dining package with a fixed fee

and experience exquisite dining up in the sky.

2.1.1 Vision, Mission, and Goals

Vision

 To be the restaurant of choice, now and for generations.

Mission

 We will consistently provide absolute guest delight with

excellent food and service in a clean and safe environment.

 16

 We will bring out the best to our team members by providing

them with a happy, safe and productive environment as well

as the opportunity for personal and professional growth.

 We will work together to provide our business partners

continuous profit and to ensure business longevity and growth.

 We will share and help improve the quality of life in the

community that we serve.

Goals

 To emerge as leaders in the food-service industry through

ongoing development of our products, services, systems and

the overall quality of our operations.

2.1.2 Business Logo

A business logo is a recognizable graphic design element,

often including a name, symbol or trademark, representing an

organization or product.

Found on the next page is the business logo of the proposed

business "Italian Restaurant in the Sky”.

 17

Figure 2

Business Logo

The logo of the proposed business “Italian Restaurant in the

Sky” is composed of a crane, for it is the major attraction of the

proposed business. Attached to the crane is a globe, because the

crane will raise you up to see the wonders of the world.

2.2 The Products

Due to the factors such as changing lifestyle, affordability, and

convenience, the demand for Italian industry is continually increasing. The

“Italian Restaurant in the Sky” is the very first Italian Restaurant in the Sky

in General Santos City that will provide unusual way of serving Italiannis.

The said restaurant will start to operate at 11:00 in the morning up to

9:00 in the evening. The business offers Italiannis which is perfect for
 18

dining up in the sky. The food will be ordered by the customer and be

delivered by the crew to their respective cottages or tables. The waiting

time for their orders would take 20-30 minutes.

Listed below are the products that the restaurant offers according to

their specifications:

PASTA

Pasta is a staple food of traditional Italian cuisine.  It is also

commonly used to refer to the variety of pasta dishes. Pasta is,

typically a noodle made from an unleavened dough of a durum

wheat flour mixed with water and formed into sheets or various

shapes, then cooked and served in any number of dishes. It can be

made with flour from other cereals or grains, and eggs may be used

instead of water.

Pasta is sometimes formed into different shapes such as thin

strips, tubes, or shells and is usually boiled.

Found on the next page is the pasta menu and its food

description of the proposed business.

 19

Table 1

PASTA MENU
Menu Food Description
Cacio e Pepe Cacio e Pepe is a pasta dish from Roman
cuisine. "Cacio e Pepe" means "cheese and
pepper" in several central Italian dialects. As the
name suggests, the ingredients of the dish are
very simple and include only black
pepper, Pecorino Romano cheese, and pasta.
When preparing the dish some of the hot
cooking water is left with the pasta: the heat
melts the cheese, while the starches in the
water help bind the pepper and cheese to the
pasta. Cacio e pepe is typically made with long,
thin spaghetti, such as tonnarelli or vermicelli.
Pasta Fagioli Pasta e Fagioli, meaning "pasta and beans", is
a traditional Italian dish. Like many other Italian
favorites, including pizza and polenta, the dish
started as a peasant dish, being composed of
inexpensive ingredients. Today it can be widely
found even in restaurants that do not specialize
in Italian cuisine. It is often pronounced pasta
fazool in the United States, after its name in
the Neapolitan language, pasta e fasule.
Italian Carbonara Carbonara is an Italian pasta dish from Rome
made with eggs, hard cheese (usually Pecorino
Romano), pancetta (or guanciale), and black
pepper. Spaghetti is the usual pasta, however,
fettuccine, rigatoni, linguine, or bucatini can also
be used. The dish was created in the middle of
the 20th century.

Pasta is a perfect foundation for healthy, nutritious and

satisfying meals: pasta is generally eaten with nutrient-dense food

partners, such as fiber-filled vegetables and beans, heart healthy

 20

fish and monounsaturated oils, antioxidant-rich tomato sauce and

protein-packed cheeses, poultry and lean meats. Pasta offers

sustained energy, folic acid, low glycemic index, balanced diet, low

sodium and cholesterol-free.

SALAD

A salad is a dish consisting of a mixture of small pieces of

food, usually featuring vegetables and fruits. They are typically

served at room temperature or chilled. Salads may contain virtually

any type of ready-to-eat food.

Starting meals with a bowl of salad will help attain

weight loss. Salads are low in calories, high in fiber and rich

in other nutrients. Fiber helps a person feel full making him

or her eat the remaining meal less and ultimately lose

weight.

Found on the next page is a table of the salad menu and its

food description offered in the proposed business.

Table 2
 21

SALAD MENU

Menu Food Description

Italian Broccoli Salad An Italian Broccoli Salad is a dish consisting of a mixture of small
pieces of food, usually featuring vegetables such as tomatoes,
broccoli, mushrooms and red onions mingle with crunchy water
chestnuts, all draped in a zesty bottled dressing.

Veggie Pasta Salad Veggie Pasta Salad is a dish consisting pasta with vegetables.
Vegetables other than greens may be used in a salad. Common
raw vegetables used in a salad includes cucumbers, peppers,
tomatoes, onions, spring onions, red onions, carrots, celery, and
radishes. Other ingredients, such as mushrooms, avocado, olives,
hardboiled egg, artichoke hearts, heart of palm, roasted red bell
peppers, green beans, croutons, cheeses, meat (e.g. bacon,
chicken), or seafood (e.g. tuna, shrimp) are sometimes added to
salads.

Eating a high fiber salads aids in lowering cholesterol

and also is known to prevent constipation.

BURGERS

A hamburger or burger is a sandwich consisting of one or

more cooked patties of ground meat, usually beef, placed inside a

sliced bread roll or bun. The patty may be pan fried, barbecued, or

flame broiled. Hamburgers are often served with cheese, lettuce,

tomato, bacon, onion, pickles, or chilies; condiments such as

mustard, mayonnaise, ketchup, relish, or special sauce; and are

frequently place on sesame seed buns.

 22

Found below is the table of the burger menu and its food

description offered in the proposed business.

Table 3

BURGER MENU
Menu Food Description
Grilled Italianni An Italian hamburger made of ground beef. A
good dose of Italian seasonings and
mozzarella for a quick meal.

Italian Turkey An Italian hamburger with warmed spaghetti

Beef Pizza Burger
sauce seasoned with oregano and parmesan
cheese, this plump burger is a delicious
change-of-pace entrée.
An Italian hamburger with seasoned ground
beef patties stuffed with mozzarella cheese
then topped with pizza sauce and green
pepper rings for a flavorful twist.

If you are a health and body conscious person, then you can

order the burgers and fries of the proposed business for it is less in

calories.

DESSERTS

Dessert is a confectionary course that concludes a main meal.

The course usually consists of sweet foods, and possibly a beverage

 23

such as dessert wine or liqueur, but may include coffee, cheeses,

nuts, or other savory items. The term dessert can apply to many

confections, such as cakes, tarts, cookies, biscuits, gelatins,

pastries, ice creams, pies, puddings, custards, and sweet soups.

Desserts are food usually sweet course or dish as of pastry or

ice cream usually eaten after the main part of a meal. Desserts are

an important part of eating well and eating healthy. The key to

making dessert part of your healthy diet is that you should consider

desserts as a special part of your life.

Found on the next page is a table of the desserts menu and its

food description offered in the proposed business.

Table 4

DESSERT MENU
Menu Food Description
Panna Cotta Panna Cotta is an Italian dessert of sweetened cream thickened
 24

with gelatin and molded. The cream may be aromatized

with rum, coffee, vanilla, or other flavorings.

Tiramisu Tiramisu, meaning "pick me up", "cheer me up" or "lift me up") is a

popular coffee-flavored Italian custard dessert. It is made
of ladyfingers dipped in coffee, layered with a whipped mixture of
eggs, sugar, and mascarpone cheese, flavored with cocoa. The
recipe has been adapted into many varieties of cakes and
other desserts. Its origins are often disputed among Italian regions
such as Veneto, Friuli-Venezia Giulia, Piedmont, and others.
Dark Chocolate Dark Chocolate Semifreddo is a class of semi-frozen desserts.
Semifreddo The principal ingredients are usually eggs, sugar and cream. It has
the texture of frozen mousse. Such a dessert's Spanish
counterpart is called semifrío. It is often called an ice-cream cake,
but a true ice-cream cake has layers of cake and ice-cream.

BEVERAGES

A beverage is a liquid intended for human consumption. In

addition to their basic function of satisfying thirst, drinks play

important roles in human culture. Common types of drinks include

plain water, milk, juices, coffee, tea, shakes, and soft drinks.

Found on the next page is a table of the beverages menu and

its food description offered in the proposed business.

Table 5

BEVERAGE MENU
Menu Food Description
Cucumber Lemonade Cucumber Lemonade is a juice blended by cucumber liquid,
simple syrup, and lemon extracts.
 25

Buko Melon Shake Buko Melon Shake is blended with buko juice, small pieces of
melon, with macapuno ice cream blended together, and
topped with grated strips of melon.

Banana Yogurt Smoothie Banana Yogurt Smoothie is a cold drink from crushed ice,
blended with banana, yogurt, and milk.

Avocado Smoothie Avocado Smoothie is an avocado drink blended with milk,

sugar, lemon juice, and ice blended together until it becomes
smooth.

The table above shows the beverage menu of the proposed

business. The beverage landscape is shifting rapidly. Consumers

are thirsting for drinks with less sugar, more nutrients, improved

functionality and pure and simple ingredients. With innovation

becoming more fragmented and happening faster than ever, one

can count on the beverages proposed menu for it is concerned with

what consumers want

2.3 SWOT Analysis

SWOT is an acronym that stands for Strengths, Weaknesses,

Opportunities, and Threats. SWOT analysis helps to know the factors that
 26

hinder and limit the growth strategies of the business. It helps to take a

critical look at how a business or operations can improve, develop or

compete more effectively.

2.3.1 Strengths

1. Business exterior is clean and tidy.

2. Prices are cheaper than your competitors.

3. Service style is new to the area.

4. Possession of technologies that give the business a

competitive nature.

5. The existence of a well-organized and effective strategic

planning.

6. Tourism market leadership.

7. Flexibility and adaptability of market requirements.

8. Increasing the tourist loyalty to business products and

services.

9. Location privileged geographical position.

2.3.2 Weaknesses

1. The restaurant is new and not established.

2. The restaurant has limited funds available.

3. Offer products which are already available on the market.

4. Customers have to travel further to get to the restaurant.

2.3.3 Opportunities
 27

1. Italian Restaurant in the Sky has only recently become a

reality. Restaurant in the Sky is a relatively new and

untapped market.

2. Food industry had a massive growth both nationally and

internationally.

3. Funding available.

4. Increase of Jobs in local economy.

5. Partnership with strong financial backers

2.3.4 Threats

1. A lack of or fall in demand.

2. The economy - e.g., interest rate changes.

3. Loss of partners.

4. Loss of important staff.

5. Financial backer withdraws.

6. Failure to achieve projected revenue.

7. Decline in the popularity of Italian cuisines.

2.4 Market Research Analysis

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

be analyzed in assessing whether the project 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 proposed

 28

business market share. The analysis is based from the information

gathered through interviews, researches and surveys.

2.4.1 Target Market

The proposed business “Italian Restaurant in the Sky” in

General Santos City, is in line with the best services and products in

the Italian food industry for any willing and potential consumers. The

business mainly targets individuals, families and friends residing in

General Santos City, who are willing to spend their money in

exchange for good food and a new experience in dining up in the

sky.

2.4.2 Market Size and Trends

In conducting the study, it is important to know the market size

of the business. It will determine the projected customers for the

year through the given number of population. It will show how many

individuals will avail the products of the proposed business

considering factors such as the age range, poverty rate, the margin

of error, and the percentage of people with fear of heights. This can

help in solving the estimated market size of the business.

The National Statistics Office recorded a total population of

594,446 as of the year 2015. They also provided annual growth rate
 29

of 2.7%, to be used to calculate the probable population for the year

of 2016, 2017, and 2018. Using the NSO given data, the

approximated population for 2018 would be 643,908.

For the market size of the Italian Restaurant in the Sky, the

age range of individuals from 15 to 59 years old is being used.

The table below shows the computation of the total market

size of the proposed business.

Table 6

Business Target Market

Particulars Total
2018 Population Ages 15-59 Years Old 401,251
Less: Percentage of People with fear of heights (3%) 12,038
Total 389,214
Less: Poverty Rate (net, 21.6%) 84,070
Business Target Market 305,143
Multiplied by: Percentage of Willing Respondents 89%
Estimated Market Size 271,578
Less: Margin of Error (10%) 27,158
Adjusted Market Size 244,420

The researcher has calculated the total population for

individuals from 15 to 59 years old in order to compute the market

size of the business. The calculated population for that age bracket

in 2018 is 401,251. The business target market will be calculated by

deducting the percentage of people with fear of heights by 3% based

on the interview she conducted. Total is then deducted by the

poverty rate of 21.6% according to Philippine Statistics Authority

 30

(PSA). Business target market is then multiplied by 89% which is the

willing respondents. The percentage of willing respondents is

computed using the survey that was conducted among 100

respondents. The 89 individuals are interested in the business if it

will be established. The researcher set a 10% margin of error to

come up with a market size of 271,578 individuals, wherein the

researcher comes up with an adjusted market size of 244,420

individuals.

Trends

Most of the teens, young adults, middle youth, mid-lifers and

late lifers are adventurous and tend to seek new experiences

specifically in terms of food. They are willing to spend their money in

exchange for an experience. The proposed business Italian

Restaurant in the Sky that is to be put up in General Santos City is

surely new to Generals and will bring a new phenomenon in the city.

2.4.3 Competition

This unique business will take the lead for it would be the first

Italian Restaurant in the Sky in our local. There are some indirect

competitors for they offer the same Italian food. The nearest indirect

competitors would be Tia Nina, Fagioli, La Veranda Café,

 31

Onlygoodfellas Resto, Pizzeria Italian, Café Verona, and etc.,

offering Italian cuisines to the public.

2.4.4 Estimated Market Share

The researcher’s objective is to find out the estimated market

share of the study. To get the relevant information to be used, the

researcher conducted survey randomly. The information gathered

will be used to get what is the estimated market share of the

proposed “Italian Restaurant in the Sky”.

2.4.4.1 Demand

Estimated market share is the percentage of a market

accounted for a specific entity, meaning to say it indicates the

business’s size within its market.

Since the project has limitations like limited resources,

finding requirements and manufacturing capacity, the

researcher decided to consider 15-59 years old as a primary

consumer.

The table below summarizes the frequency of annual

market. The total frequency in a year will be used in getting

the total demand for the researcher’s proposed business

“Italian Restaurant in the Sky”.

Table 7
 32

Average Frequency
Wil ing Respondents Frequency

Once A Once A Twice A Once A Twice A Total Willing Once A Once A Twice A Once A Twice A Total
Menu
Week Month Month Year Year Respondents Week (52) Month (12) Month (24) Year (1) Year (2) Frequency

PASTA
Cacio e Pepe 11 12 10 16 12 61 9.38 2.36 3.93 0.26 0.39 16.33
Pasta Fagioli 10 8 11 11 10 50 10.40 1.92 5.28 0.22 0.40 18.22
Italian Carbonara 14 16 6 10 7 53 13.74 0.00 2.72 0.19 0.26 16.91
SALAD
Italian Broccoli Salad 12 8 12 11 12 55 11.35 1.75 5.24 0.20 0.44 18.96
Veggie Pasta Salad 14 7 7 15 16 59 12.34 1.42 2.85 0.25 0.54 17.41
BURGERS
Gril ed Italianni 15 9 13 12 14 63 12.38 1.71 4.95 0.19 0.44 19.68
Italian Turkey 13 12 15 18 11 69 9.80 2.09 5.22 0.26 0.32 17.68
Beef Pizza Burger 8 15 5 19 12 59 7.05 3.05 2.03 0.32 0.41 12.86
DESSERT
Panna Cotta 12 11 12 15 14 64 9.75 2.06 4.50 0.23 0.44 16.98
Tiramisu 15 12 18 19 16 80 9.75 1.80 5.40 0.24 0.40 17.59
Dark Chocolate Semif reddo 7 14 11 16 15 63 5.78 2.67 4.19 0.25 0.48 13.37
BEVERAGES
Cucumber Lemonade 12 15 12 17 18 74 8.43 2.43 3.89 0.23 0.49 15.47
Buko Melon Shake 11 12 14 19 19 75 7.63 1.92 4.48 0.25 0.51 14.79
Banana Yogurt Smoothie 13 10 10 15 12 60 11.27 2.00 4.00 0.25 0.40 17.92
Avocado Smoothie 10 9 13 18 10 60 8.67 1.80 5.20 0.30 0.33 16.30
Total Average Frequency 254.09
Divided by Number of Menu 15
Average Frequency 16.94

In getting the frequency of the proposed study, number

of willing respondents is determined how frequent would they

avail each menu. Number of respondents is then multiplied by

their desired orders. The number of orders is then prorated

and multiplied to the each heading based on their respective

variables. The number of orders per menu is averaged and it

is summed to get the total frequency and divided by the total

 33

number of menu which is 15 to come up with the total average

frequency of 16.94.

2.4.4.1.1 Computation of Demand

Since the project has limitations like limited

resources, finding requirements and manufacturing

capacity, the researcher decided to consider 15-59

years old as a primary consumer.

Table 8

Computation of Demand
244,4
Total Market Size 20
Multiplied by Average Frequency in a Year per 16
Order .94
4,140,2
Total Market Demand 76

Found on the previous page is the market size of

the proposed business wherein 244,420 multiplied to

the average frequency of 16.94 to get the total market

demand which is 4,140,276 individuals.

2.4.4.2 Supply

A direct competitor is a term that describes a company

that produces a virtually identical goods or services that is

 34

offered for sale within the same market as those produced by

one or more companies. In addition, a direct competitor is a

person or business who is competing with another to sell the

same product or services. In General Santos City the ITALIAN

RESTAURANT IN THE SKY business has no direct

competitor.

2.4.4.3 Demand and Supply Analysis

Estimated market share is the approximate percentage

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

specified time period. This measurement indicates a

company’s size within its market.

To determine the estimated market share, the

researcher conducted a survey to the individuals residing in

General Santos City.

The demand and supply analysis is presented on the

table below to determine the proposed business’s share in the

demand pie.

Table 9
 35

Demand and Supply Analysis

Total Demand 4,140,276.40
Less: Total Supply -
Free Market 4,140,276.40

Free market is computed by deducting the total supply

from the total demand in a year. In this case, 4,140,276.40

which represent the total annual demand is deducted by 0

because the proposed business doesn’t have any supply

because the said business has no direct competitors.

Therefore, the free market of the proposed business is the

4,140,276.40.

2.4.4.4 Estimated Market Share

Found on the next page is the estimated market share

of the proposed business “Italian Restaurant in the Sky”.

Table 10

Estimated Market Share

Market Share (Annual Capacity) 69,696
Divided by: Total Annual Demand 4,140,276.40
Estimated Market Share of Italian
1.68%
Restaurant in the Sky

The Estimated Market Share of the business is

computed by dividing the Annual Capacity of 69,696 by the

 36

Total Annual Demand for “Italian Restaurant in the Sky” of

4,140,276.40 which shows a percentage of 1.68%.

A company's estimated market share is its sales

measured as a percentage of an industry's total revenues.

The company's estimated market share was determined by

dividing its capacity at 80% by the total demand over a period.

The estimated market share will be used to measure and to

get a general idea of the size of a company relative to the

industry.

The figure on the next page shows the distribution of

demand.

Figure 3

Market Share of the Italian Restaurant in the Sky

 37

The dark pink part in the pie graph is the competitor’s

share, which has a percentage of 3.01%. While the market

shares of the Italian Restaurant in the Sky is the darker pink

portion which is 1.68%. The free market has a percentage of

95.30%.

2.4.4.5 Practical Capacity

The Italian Restaurant in the Sky has no direct primary

existing players in General Santos City. However there are

indirect competitors to be taken in consideration.

Table 11

Annual Capacity
Total Minutes of Operation per Day 600
Divided by No. of Minute Required to Cater Each Customer 20
Total Capacity per Day 30
Multiplied by No. of Kitchen Assistant to Serve 8
Total No. of Orders per Day 240
Multiplied by No. of Operating Days 363
Total Capacity per Year 87,120
Practical Capacity 80%
Estim ated Annual Capacity 69,696

Italian Restaurant in the Sky will operate its business at

11:00 am up to 9:00 pm, for a total of 600 minutes per day.

The proposed business estimates to cater 20 minutes per

 38

customer. Next, the total capacity per day will be multiplied by

number of kitchen assistants to serve to get the total number

of orders per day. Then, multiplied by number of operating

days, then multiplied again to its practical capacity which is

80%. Therefore, the estimated annual capacity is 87,120 in a

year.

Considering all factors, such as the capacity of the

employees and the capacity of the machines to be used, an

allowance of 80% is set by the researcher as the percentage

of capacity for the proposed business. Hence, the estimated

annual orders that the proposed business can supply is

69,696.

2.5 Marketing Strategy

The marketing strategy comprises the pricing and promotional

strategies that are useful for endorsing the Italian Restaurant in the Sky. It

also includes the sales and distribution which implies how the services are

given to customers. It is discussed in order to take the business into the

market with significant techniques.

2.5.1 Penetrate the Market

 39

The first strategy is to penetrate the market. Italian Restaurant

in the Sky is dedicated to give new experience to Italian cuisine

lovers. The proposed business plans to perform a wide marketing,

not only to build a name but also to build deep relationship with

customers. To reach the target customers, the following methods will

be used: leaflets, social media page, tarpaulins and local print

media.

2.5.2 Pricing Strategy

One of the components of marketing which contribute to a

large amount in achieving the firm’s sales and profit goals is the

pricing strategy.

The table below presents the price list that the proposed

business offers.

Table 12
Price List
PASTA
Cacio e Pepe 466
Pasta Fagioli 320
Italian Carbonara 267
SALAD
Italian Broccoli Salad 267
Veggie Pasta Salad 251
BURGERS
Grilled Italianni 290
Italian Turkey 339
Beef Pizza Burger 363
DESSERT
Panna Cotta 165
Tiramisu 186
Dark Chocolate Semif reddo 217
BEVERAGES
Cucumber Lemonade 205
Buko Melon Shake 187
Banana Yogurt Smoothie 164
Avocado Smoothie 223
 40

The pricing of each dish is based by the researcher from the

survey conducted. The researcher distributed the survey

questionnaires with options of prices. The costing of the products is

then adjusted to compensate the pricing from the survey

questionnaire.

2.5.3 Promotional Strategy

Promotion, as part of the marketing mix, plays a great role in

the business. Effective promotional methods are important to

achieve and attain customers. The proposed business, “Italian

Restaurant in the Sky” will use the mass communication, which

includes advertising through tarpaulins, leaflets and through social

medias.
 41

“Italian Restaurant in the Sky” is the slogan of the proposed

business. The leaflets and tarpaulins must contain this slogan to

appeal the target market.

The leaflets and tarpaulins must also contain the important

information such as the location of the business and the business

hours.

Tarpaulins will be posted in places like KCC Mall, Pioneer

Avenue, and Fujifilm-Roxas.

Social media pages such as Facebook, Instagram, and Twitter

will be used to endorse the proposed business.

Local print media such as newspapers will also be used to

broadcast the products offered by the proposed business.