CHAPTER II

MARKET ASPECT

This chapter discusses the market-related aspects of the proposed

business. This identifies the service to be rendered, target market, market

size and the estimated market share of the business. It targeted to make a

research on the demand of the product and supply in order to achieve the

business’ target market.

2.1. Business Description

Pinoy Jjimjilbang offers a different take on spa culture. The

combination of highly cultural and holistic activities which makes the

concept unique and innovative technology that provides vibrant business

opportunity that consists of traditional Korean body scrub and a perfect

massage that will allow guests to experience a new way of wellness.

2.1.1 Vision, Mission and Objectives

As an initial point in planning for a startup business the

owners create the mission, vision and objectives in order to know

the direction they will put up and to help communicate the goals

and the plan to the employees and the public

2.1.1.1 Vision.

Our vision is to serve and pamper our guests in the

most indulgent way. Also, we create a harmonious healing

environment for all to enjoy. To offer exquisite experiences

each and every time.

 2.1.1.2 Mission.

Our mission is to run a profitable business by

providing excellent and aesthetician services in a caring,

upscale, professional environment. 

2.1.2 Business Logo

Figure 2
Business Logo

2.2 Industry Description

2.2.1 Industry Segmentation

Service
Industry

Recreati Health and Educatio

onal Beauty nal
Wellness
Services Services

Hotel Salon Hydrothe Medical

Day Spa
Spa Spa rapy Spa Spa

Mineral Water
Thermal
Spa Therapies

Figure 3
Industry Segmentation
 In the Figure above shows the different subcategories of

Health and Beauty Wellness; Hotel Spa, Salon Spa, Day Spa,

Hydrotherapy Spa and Medical Spa. Likewise, under subcategory

of Hydrotherapy Spa are Mineral Spa and Hydrotherapy Pools.

Health and Beautification Wellness is a service industry that offers

customers a relaxation and beautification that they need. Under

Hotel Spa it provides a shelter with relaxation to the customers, the

Salon Spa gives customer’s beautification, while the Day Spa gives

luxurious treatments like massage, salt glows and seaweed wraps,

the Medical Spa offers more specialized treatments inject able like

Botox, Chemical Peels and etc. Lastly, the Hydrotherapy Spa is the

ancient use of water to treat various ailments and aid relaxation.

2.2.2 Industry Trend

2.2.2.1 International Trend

In this modern world, people live with a tight and busy

schedule which made it a reason to visit spa more often and

it become somehow a norm. In European history, two

dynasties were famous for their distinctive bathing culture.

First and foremost, the Roman Empire is well-known for its

public bathing culture. The ruins of Roman baths so

Thermal, can still be found throughout Europe, in places with

natural hot-springs and in places without. Second, public

bathing culture is for healing purposes was central to the

upper-class in the Austro-Hungarian Habsburg monarchy as

well as in the other parts of Central Europe.

In Asia, the most famous bathing culture is Japanese

before the rise of Korean bathing culture. The islands, being

volcanic origin, are home of thousands of natural hot

springs. Japanese bathing culture involves social, cleaning,

refreshing and healing elements.

2.2.2.2 National Trend

Korean spa and beauty treatments at spas catering to

people seeking popular body scrubs, affordable facials and

massage, along with after-hour locations serving the late

night party crowd, have been popular for some time. In the

Philippines, people are engage into Korean culture and

have become hip to the relatively affordable pampering

benefits of these Korean spas (or jimjilbang). There is no

other spa handholding in the country. Visitors have to leave

their body shame in the parking lot (Korean spas are

traditionally a nude environment), figure out which to hit first,

the hot or cold plunge, wonder just what a steam sauna is

(pretty and calming, but also calcium- and magnesium-rich),

and submit to one of the best exfoliation treatments a human

being can seemingly have: for women, a strong, generally

older, no nonsense feeling Korean pinay woman wearing

 black bra and underpants forcefully scrubbing your body’s

dead skin off with an exfoliating glove.

2.2.2.3 Local Trend

Filipinos are known to visit spas specially Generals,

due to their overworked lifestyles. It’s not just singles and

workers who are patrons, but also families, friends, and

couples come not only to relax, but also to retain their

beauty. Treating yourself to the serenity and pampering of a

local spa near you is a good investment.

2.3 Business Services and Products

Pinoy Jjimjilbang offers a new kind of service that provides a good

spa for customer aging 15 to 59 years old without medical condition.

Engaging in different kinds of spa has many important health benefits. You

will enjoy the benefits of lowering and preventing chances of developing

chronic diseases like heart diseases, stroke and dementia. Also, it lowers

the chances of developing high blood pressure and will lead to notable

improvement in blood circulation.

During the therapy you will typically do the following first, take a

shower in the gender-segregated shower rooms then precede to the hot

hinoki tubs for about 10-20 minutes. After that, throw yourself in the cold

pool for a refreshing minute. When you plunge your body into the cold

water for that 60 second shock, the blood vessels quickly constrict in an

effort to move the warm blood deeper into the body to keep your body
 warm. When this happen the oxygen rich blood is pushed back to the

deeper tissues. To deeply love and enjoy yourself with the hydrotherapy

that the spa is offering, soak your body in the massage pool for 20-30

minutes.

Pinoy Jjimjilbang also offers a sauna to get warmed up for a further

15 to 30 minutes. It is a drier, hotter than in a steam bath. It is another

technique to warm the body, bring the blood back to the skin’s surface,

and encourage sweat bathing for its detoxification benefits due to intense

perspiration. Moreover, there is maintenance in the technical and

cleanliness of the place. This Korean spa is very limited in the Philippines,

particularly in Mindanao.

To make sure that the spa goers will not feel hungry during their

stay inside the establishment, Pinoy Jjimjilbang offers the following food

and beverages:

FOOD
HOTSILOG CHORIZOSILOG
Hotsilog is a meal served w ith
Chorizosilog is a meal served w ith
hotdog, one cup of rice and fried
₱75 ₱75 chorizo (grind beef meat), one cup
egg. It a original Filipino cuisine that
of rice and fried egg.
is commonly eaten for breakfast.

GRILLED EGG BUCKET TUYOSILOG

Grille egg bucket originated from
Korean of w hich the egg is being Tuyosilog is a meal served w ith
₱100 grilled and served in a large bow l ₱60 tuyo (dried fish), one cup of rice
w ith salt for seasoning. and fried egg.

DRINK
COFFEE MILK

Coffee is a brew ed drink prepared

Milk is a dairy product made by
₱50 from roasted coffee bean w ith a hint ₱50 evaporating milk to dryness.
of liquid creamer that adds a classic

BLUE LEMONADE CUCUMBER

Blue lemonade is made of Cucumber juice is the juice
₱50 blueberries and blackberries w ith a ₱50 extracted from cucumber added
taste of sour lemonade w ith the sour of lemonade

ICED TEA PINEAPPLE

Iced tea is a form of cold tea or a Pineapple juice is a liquid made
₱40 tea that has been chilled and ₱40 from pressing the natural liquid
cooled. from the pulp of the pineapple.
2.4. Market Research Analysis

In conducting this study, the probability was considered first. The analysis

was based on the surveys, interviews and researches that were conducted to

gather reliable and relevant information. This section discussed the target

market, the market size and trends, the competition, and projections in estimating

the proposed business market share.

2.4.1 Target Market

2.4.1.1 Market Segmentation

Market segmentation divides a market into clearly

identifiable segment of consumers with similar priorities. Once

identified, those segments can be targeted with a specific

marketing mix tailored to each segment’s unique needs, desired

and motivation.

2.4.1.1.1 Demographic Segmentation

Demographics allow us to understand the population

in any geographic re such as the age, gender, family, buying

behavior, customer preferences or understand the business

in any area: size, industry, employees and revenues.

 (15-18)
(15-18) Likes new
Likes new
Teenagers
Teenagers trend
trend

(18-25)
(18-25) Likes
Likes new
new
Young Adults
Young Adults trend
trend
Age
Age
(25-40)
(25-40) Spa goers
Spa goers
Mature Adults
Mature Adults

(40-59)
(40-59) Spa goers
Spa goers
Middle Age
Middle Age

Low income
Low income
customer
customer
Demographic
Demographic
Segmentation
Segmentation
Mid
Mid Income
Income
Income
Income Customer
Customer

High
High income
income
customer
customer

Secondary
Secondary
students
students
Education
College
College or
or
University
University

Figure 4
Demographic Segmentation

The demographic segmentation age is the most

basic variable of them all, the most important because

consumer preferences continually change with age. This

variable can be viewed regarding specific age ranges of

Teenagers, Young Adults, Mature Adults and Middle Age

Adults. They are the target market since it talks about

relaxation. People nowadays wanted to indulge in this new

kind of treatment especially millennial who likes new trend

and adults finding a perfect place to unwind themselves.

2.4.1.1.2 Geographic Segmentation

Geographic segmentation divides the market

according to its geographic criteria such as nations, states,

regions, cities, neighborhood or zip codes. The critical intent

of the business is to make profit. To accomplish this goal, an

ideal marketing tactic is necessary. It is vital that

marketers recognize the diversity of each customer and

identifies their needs by the different segments of the market

National Philippines

Geographic South
Segmentation Regional Cotabato

General
Local
Santos City

Figure 5
Geographic Segmentation

Base on the census of 2015 the population in

General Santos City reached to 594,446 and with a

growth rate of 2.43% in 2018 with a total of 670,268. This

area is the target market since it is known for a highly

urbanized city also it is a perfect place to build a new

different kind of service that the generals would enjoy.

2.4.1.1.3 Behavioral Segmentation

Segmentation based on customer behavior variables

normally includes a sub-segment of consumer segmentation.

Business organizations often collect data to see the segment

 that best fits their consumer behavior. In behavioral

segmentation, customers are divided into groups according

to their knowledge of, attitude towards, use of response to

the service offered. It is actually based on the attitude and

behavior of the customer.

Potential
user

Interested Ex - user
Loyal
High Regular
Behavioral involvement user Not
Loyal
Segmentation Not Negative
Low Interested Opinion
involvement

Figure 6
Behavioral Segmentation

The consumer with a high involvement is the target market.

By segmenting according to nonusers, ex-users, potential users,

first-time users and regular users of a product or service a company

can customize its marketing for each group. Where regular users of

a certain product request one kind of marketing approach, potential

users may request another kind of marketing approach, and thus it

is necessary to divide the customers into different segments and

target them in different ways.

2.4.2 Estimated Market Size

Market share is the percentage of a market accounted for by each

business. It provides important insight to how much of the total potential

 market a client might capture. If the market is not large enough to support

the business, the client has a problem. Also, if the number of units or

service needed for the business to breakeven financially is known, the

client can determine what share of the market must be captures to

achieve its breakeven point.

The Philippine Statistics Authority recorded a total population

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

of 2.43%, to be used to calculate the probable population for the year of

2016, 2017, 2018 and 2019. Using the PSA given data, the

approximated population for 2019 would be 308,882.76. Individuals

from 15 to 59 years old who are willing to try this spectacular spa activity

are the market size of Pinoy Jjimjilbang.

Table 3 below shows the computation of the total market size

of the proposed business.

Table 3
Estimated Market Size

Particulars Total
2020 Population Ages 15-59 Years 308,882.
Old 76
Less: Poverty Rate 13.80%
Business Target Market 266,257
Percentage of willing respondents 95%
Market size 252,944.09
Less: Margin Error 10%
Estimated Market Size 227,650

2.5 Estimated Market Share

 One of the objectives of this study is to determine the estimated

market share of Pinoy Jjimjilbang in General Santos City. It provides the

idea of the size of the business or company related to its market and

competitors.

The researcher conducted a survey to its target market to get the

total demand in relation to frequency.

2.5.1 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 limitation in resources, finding

requirements and manufacturing capacity, the researcher decided to

consider 15-59 years old as the primary consumer.

Table 4 on the next page summarizes the frequency of annual

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

demand for the Korean spa business.

According to the survey conducted by the researcher, there

are 94 respondents who are willing to avail the services of Pinoy

Jjimjilbang and 10 of them wants to avail the first package. For

others, there are 19 respondents, who want to avail the second

package and 28 individuals chooses the third package. Lastly, 37

persons choose to experience the fourth package.

 Table 4
Frequency of Annual Market

Frequency
Number of willing
Total Percentage Average Frequency
respondents
Frequen
cy Pk Pk Pk Pk Pk Pk Pk Pk Pk Pk Pk Pk
Pkg Pkg Pkg
g g g g g g g g g g g g Pkg 4
1 2 3
1 2 3 4 1 2 3 4 1 2 3 4
0.017
2 0 1 0 0 0 2 0 0 0% 1% 0% 0% 0 0 0
62
0.076
3 1 0 0 0 3 0 0 0 3% 0% 0% 0% 0 0 0
92
0.070
4 0 1 0 0 0 4 0 0 0% 2% 0% 0% 0 0 0
48
0.427 0.186
5 2 0 0 4 10 0 0 20 9% 0% 0% 4% 0 0
35 92
0.158 0.089 0.201
6 0 1 1 3 0 6 6 18 0% 3% 1% 3% 0
59 78 87
0.215 0.244
7 0 1 2 0 0 7 14 0 0% 3% 3% 0% 0 0
86 39
14 1.094 0.319 0.119
8 2 0 2 1 16 0 16 8 0% 4% 1% 0
% 02 2 63
0.151
9 0 0 1 1 0 0 9 9 0% 0% 2% 2% 0 0 0.202
4
26 15 0.854 2.643 1.496 0.747
10 1 6 6 4 10 60 60 40 9% 7%
% % 7 17 26 66
0.301
11 0 0 1 0 0 0 11 0 0% 0% 3% 0% 0 0 0
75
11 1.345
12 0 0 0 5 0 0 0 60 0% 0% 0% 0 0 0
% 79
11 1.444 0.744 0.842 0.315
13 1 1 2 1 13 13 26 13 6% 6% 2%
% 44 49 89 89
0.863
14 0 1 0 0 0 14 0 0 0% 6% 0% 0% 0 0 0
44
10 20 20 2.973 1.122 2.943
15 0 3 2 7 0 45 30 0% 7% 0
5 % % 57 19 93
1.127 0.478
16 0 1 0 1 0 16 0 16 0% 7% 0% 3% 0 0
75 5
17 0 0 0 0 0 0 0 0 0% 0% 0% 0% 0 0 0 0
1.211
18 0 0 0 2 0 0 0 36 0% 0% 0% 7% 0 0 0
21
0.900
19 0 0 1 0 0 0 19 0 0% 0% 5% 0% 0 0 0
25
16 34 26 40 6.837 5.286 7.980 1.495
20 2 3 8 2 40 60 40 7%
0 % % % 61 34 05 33
0.824
21 0 0 0 1 0 0 0 21 0% 0% 0% 4% 0 0 0
3
22 0 0 0 0 0 0 0 0 0% 0% 0% 0% 0 0 0 0
23 0 0 0 0 0 0 0 0 0% 0% 0% 0% 0 0 0 0
1.076
24 0 0 0 1 0 0 0 24 0% 0% 0% 4% 0 0 0
64
21 12 5.341 3.117 1.168
25 1 0 2 1 25 0 50 25 0% 5% 0
% % 88 21 22
26 0 0 0 0 0 0 0 0 0% 0% 0% 0% 0 0 0 0
 27 0 0 0 0 0 0 0 0 0% 0% 0% 0% 0 0 0 0
28 0 0 0 0 0 0 0 0 0% 0% 0% 0% 0 0 0 0
29 0 0 0 0 0 0 0 0 0% 0% 0% 0% 0 0 0 0
1.682
30 0 0 0 1 0 0 0 30 0% 0% 0% 6% 0 0 0
24
31 0 0 0 0 0 0 0 0 0% 0% 0% 0% 0 0 0 0
32 0 0 0 0 0 0 0 0 0% 0% 0% 0% 0 0 0 0
33 0 0 0 0 0 0 0 0 0% 0% 0% 0% 0 0 0 0
34 0 0 0 0 0 0 0 0 0% 0% 0% 0% 0 0 0 0
13 4.579
35 0 0 0 2 0 0 0 70 0% 0% 0% 0 0 0
% 44
16.07 14.10 16.61 18.52
TOTAL                        
69 13 6 9
.

In the table 5 below are the calculation in getting the total

demand of the Korean Spa business. The total demand will be used

in getting the market share of the business considering its indirect

competitors.

Table 5
Estimated Demand

Particulars Package 1 Package 2 Package 3 Package 4

Market Size 227,650 227,650 227,650 227,650

Multiply by frequency in
16.08 14.10 16.62 18.53
a year
Market Demand (in 3,659,906.4 3,210,161.3 3,782,618.0 4,218,114.5
person) 0 5 1 5

The target market size of 227, 650 is computed in table no. 3

is multiplied by the average frequency in a year of 16.0769 for

package 1 and 14.1013 for package 2. For package 3, target market

size is multiply with the average frequency of 16.616 and 18.529 for

package 4 who are willing to spend a certain price on a particular

service, so the total market demand is 3,659,906, 3,210,161.35,

3,782,618.01 and 4,218,114.55 respectively. The frequency will be

used to compute the number of persons who will avail each service.

2.5.2 Supply

2.5.2.1 Competition

This section shows the competition of the each of the stated

services in the market particularly in General Santos City.

2.5.2.1.1 Direct Competitors

Pinoy Jjimjilbang has no direct competitor in General Santos

City.

2.5.2.1.2 Indirect Competitors

There are a lot of indirect competitors in General Santos City

which offers usually body massage such as Mt. Albo located at

Sergio Osmena Street, Life Spa n’ Massage Suite at J. Catolico

Ave, Lagao, Sanare Therapeutic Massage located at South

Osmeña street, Atman Spa and Massage which have been

interviewed to gather knowledge about massage centers.

2.5.3 Demand and Supply Analysis

 As a final point, for the demand and supply analysis, the

demand supply analysis is shown in the table 6 on the next page.

The proposed business in General Santos City has no direct

competitor. Hence, the total demand of Korean spa service in

General Santos City is free market.

Table 6
Demand and Supply Analysis

Particulars Total

Total Demand 3,659,906

Total supply from Direct Competitors 0

Free Market 3,659,906

2.5.4 Estimated Market Share

Estimated market share is the approximate percentage of an

industry that is earned by a particular business over a specified time

period.

The computation for the estimated market share of the

proposed business is presented below.

Table 7
Estimated Market Share

Particulars Total

Free Market 3,659,906

Practical Capacity of Pinoy Jjimjilbang 72,532.95

Estimated Market Share Percentage 2%

 T

T The market share of the proposed business is

computed by using the estimated annual capacity, 72,532.95 to be

divided by the total demand of 3,659,906 that were computed in

table 8. The market share of the proposed business is 2%.

Figure 8 below shows the market share of the Pinoy

Jjimjilbang in a graph.

Estimated Market Share Percentage

2%

1
2

98%

Figure 7
Market Share

2.6 SWOT Analysis

SWOT is an acronym that stands for Strengths, Weaknesses,

Opportunities, and Threats. SWOT analysis helps to know the factors that
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. Found on the Table No. 8 on the next page is

SWOT analysis

2.7 Marketing Strategy

2.7.1 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 on the next page presents the list of prices in the proposed

business.

2.7.2 Promotional Strategy

An effective promotion strategy is significant in order for the

business to inform its target customers about their product so it will

increase its revenue. In the long run, promotion helps the business to

keep the loyalty of its regular customers and draw attention to new

clientele. The table on the next page presents the list of advertisement

that will be utilized in the proposed business.

 Table 8
SWOT Analysis
.
Internal Environment
Strengths (S)
1. Possession of technologies that give the
business a competitive nature
2. The existence of a well-organized and
effective strategic planning
3. Tourism market leadership
4. Flexibility and adaptability of market
requirements
5. Increasing the tourist loyalty to business
product and services.
6. Location privileged geographical
position
External Environment
Opportunities (O)
1. Water Spa technology has recently
become a reality
2. Water Spa is a relatively new and
untapped market
3. Water Spa has had massive growth both
nationally and internationally
4. Funding available
5. Increase of Jobs in local economy
6. Partnership with strong financial backers
Weaknesses (W)
1. Obtaining large loans for banks would
be difficult given economic situation.
2. Cash flow difficulties associated with
fledging start-ups
3. Uncertainty of returns in a new
emerging market.
4. High initial investment cost (land labor
construction, purchase of patented wave
producing technology)
5. Planning permit may be difficult to be
granted, given the location.
Threats (T)
1. A lack of or fall in demand
2. The economy - eg, 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 spa
 Table 9
Prices

PARTICULARS RATE

ENTRANCE FEE:

3HRS. ₱ 350.00

4HRS. ₱ 500.00

6HRS. ₱ 650.00

12HRS. ₱ 1000.00

SILOG:

HOTSILOG ₱ 75.00

CHORIZOSILOG ₱ 75.00

TUYOSILOG ₱ 60.00

GRILLED EGG BUCKET ₱ 100.00

DRINKS:

COFFEE ₱ 50.00

MILK ₱ 50.00

BLUE LEMONADE ₱ 50.00

CUCUMBER JUICE ₱ 50.00

ICED TEA ₱ 40.00

PINEAPPLE JUICE ₱ 40.00

Table 10
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