Chapter 2

Market Study

2.1 Description of the Products to be Provided

Pack N’ Lunch will offer Pinoy style fried rice. The fried rice consists of cooked

rice mixed with ground pork and beaten eggs. Vegetables such as carrots, cabbage and

spring onions are also added for more vivid appearance of the rice meal. Soy sauce and a

cup of Malunggay leaves are mixed to provide more nutritious and more delicious meal

at a reasonable price.

The products will be produced in a production area at Purok 7, Barangay 8,

Salcedo St., Daet, Camarines Norte and will be distributed through a food cart from

10:00 am to 2:00 pm from Monday to Friday.

The fried rice will be prepared using fresh ingredients bought from the local

market. To protect it from the spoilage and to keep the products warm when served, a

food warmer is utilized. By doing so, customers will consume the products on carton

food boxes at their excellent condition.

2.2 Demand Analysis

The target customers of the proposed business are Camarines Norte State College

(CNSC) students and employees at the Main Campus who are the nearest occupants in

the location.
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Table 1.1

Total Number of Students Enrolled in Camarines Norte State College – Main Campus,
Daet, Camarines Norte

College/Department 2010 2011 2012 2013 2014

College of Business and Public
1,875 2,200 2,487 2,383 2,337
Administration
College of Arts and Sciences 629 745 913 1,120 1,238
College of Engineering and
695 798 851 821 869
Information Technology
Total 3,199 3,743 4,251 4,324 4,444
Source: CNSC Registrar

Table 1.1 shows the total number of students enrolled in Camarines Norte

State College (CNSC) Main Campus, Daet, Camarines Norte from 2010-2014. It also

shows that the rate of increase in the number of students enrolled is 8.77% annually by

using the arithmetic geometric curve method.

Table 1.2

Total Number of Employees in Camarines Norte State College – Main Campus,

Daet, Camarines Norte

Year 2010 2011 2012 2013 2014

Population 127 129 140 94 106
Total 127 129 140 94 106
Source: CNSC Human Resource Office

Table 1.2 shows the total number of employees in Camarines Norte State

College (CNSC) Main Campus, Daet, Camarines Norte from 2010-2014. It also shows

that the rate of decrease in the number of employees is 2.50% annually by using the

arithmetic geometric curve method. The 2013 decrease of number of employees in the
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Main Campus was brought by the transfer of personnel of the College of Education to

the Abaño Campus.

Table 2.1

Historical Demand of Fried Rice for Camarines Norte State College – Main Campus’
Students

Total Population of the 87% of the Total Population Total Demand

Year
Target Market buy Fried Rice (servings)
2010 3,199 2,783 75,145
2011 3,743 3,256 87,923
2012 4,251 3,698 99,856
2013 4,324 3,762 101,571
2014 4,444 3,866 104,390

The table 2.1 shows the historical demand of the proposed business. This was

computed by multiplying the total population of students from year 2010-2014 by 87%

which is the percentage of the population that consumes fried rice, multiplied by 27

which represents the average number of fried rice consumed per person for a year.
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Table 2.2

Historical Demand of Fried Rice for Camarines Norte State College – Main Campus’
Employees

Total Population of the 80% of the Population Total Demand

Year
Target Market Consuming Fried Rice (servings)
2010 127 102 2,743
2011 129 103 2,786
2012 140 112 3,024
2013 94 75 2,030
2014 106 85 2,290

The table 2.2 shows the historical demand of the proposed business. This was

computed by multiplying the total population of employees from year 2010-2014 by 80%

which is the percentage of the population that consumes fried rice, multiplied by 27

which represents the average number of fried rice consumed per person for a year.
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Table 3.1

Projected Demand of Fried Rice for Camarines Norte State College – Main Campus’
Students

Total Population of the 87% of the Population Total Demand

Year
Target Market Consuming Fried Rice (servings)
2015 4,834 4,205 113,545
2016 5,258 4,574 123,502
2017 5,719 4,975 134,334
2018 6,220 5,412 146,115
2019 6,766 5,886 158,929
2020 7,359 6,402 172,867

Table 3.1 illustrates the projected demand of the proposed business. This was

computed by multiplying the total population of students by 87% which is the assumed

percentage of the population who are consuming fried rice, multiplied by 27 which

represents the assumed average number of fried rice consumed per person for a year. It is

notable that the population has an average of 8.80%, which was computed using the

arithmetic geometric curve method.

Table 3.2
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Projected Demand of Fried Rice for Camarines Norte State College – Main Campus’
Employees

80% of the Population

Year Total Population Demand
Consuming Fried Rice
2015 103 83 2,232
2016 101 81 2,177
2017 98 79 2,122
2018 96 77 2,069
2019 93 75 2,017
2020 91 73 1,967

Table 3.2 illustrates the projected demand of the proposed business. This was

computed by multiplying the total population of employees by 80% which is the assumed

percentage of the population who are consuming fried rice, multiplied by 27 which

represents the assumed average number of fried rice consumed per person for a year. It is

notable that the population has an average decrease of 2.50%, which was computed using

the Arithmetic Geometric Curve method.

2.3 Competitors: Their Supply and Business Capacity

It is essential in putting up a business to identify its competitors in order to

determine the capacity and what more can be offered. Pack N’ Lunch offers fried rice for

lunch and three businesses were identified as its competitors: Chowking, Sinangag Plaza,

and Burp Box.

Table 4
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Number of servings Number of Days of Total Supply

Competitor
sold per day Operation (servings)
Chowking 150 360 54,000
Sinangag Plaza 50 360 18,000
Burp Box 15 240 3,600
Total 215   75,600
Supply Analysis for Fried Rice
Source: Actual Interview

Table 4 indicates the annual supply or the total number of sold fried rice for the

closest competitors for the proposed business. The figures on the table were obtained

through conducting interviews with the employees or manager of the said businesses. The

total supply was computed by multiplying the total number of servings sold per day by

360 for competitors operating seven (7) days a week, and 240 for the competitor that

operates for six (6) days a week.

Table 5

Projected Supply Analysis for Fried Rice

Year Total Supply (servings)

2015 83,160
2016 91,476
2017 100,624
2018 110,686
2019 121,755
2020 133,930
Source: Actual Interview

Table 5 shows the projected supply from year 2015 to 2020 for the competitors of

the proposed business. To get the annual total supply, total number of servings of fried

rice was multiplied by 10% which is the annual increase of supply of the competitors.

Table 6

Demand and Supply Gap for Fried Rice

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Year Total Demand Total Supply Gap Market Share

2015 115,777 83,160 32,617 -
2016 125,679 91,476 34,203 64.47%
2017 136,456 100,624 35,832 64.61%
2018 148,184 110,686 37,498 64.83%
2019 160,946 121,755 39,192 65.13%
2020 174,834 133,930 40,904 65.52%

Table 6 shows the total demand, total supply, the gap, and market share from

2015 to 2020 of the proposed business. The gap is computed by subtracting the total

supply from the total demand. Market share is computed by dividing the projected

product capacity of the proposed business by the gap. This shows the percentage of

demand of the total population supplied or satisfied by the suppliers and the proposed

business together. This indicates that there’s still demand for the product through the

coming years.

2.4 Projected Product Capacity

The proposed business will produce 100 servings of fried rice a day thru the 9

hour operation during weekdays. The estimated production in a month is 2,000 or 20,000

servings for a year.

2.5 Marketing Strategy

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Marketing Strategy is the goal of increasing sales and achieving a sustainable

competitive advantage. It includes all basic and long term activities in the field of

marketing which deals with the analysis of the strategic initial situation of a business and

the formulation, evaluation and selection of market-oriented strategies and therefore

contribute to the goals of the business and its marketing objectives. It also serves as the

fundamental underpinning of marketing plans designed to feel market needs and reach

marketing objectives.

Product Strategy

Pack N’ Lunch will serve fried rice produced at a well supervised and

standardized procedures giving huge emphasis in quality control and sanitation.

Among the other fried rice offered in the market, Pinoy style Fried Rice is mixed

with malunggay leaves which is considered a miracle plant for it provides different

vitamins and minerals and is abundant in the local community making it readily available

in the public market.

Price Strategy

In terms of pricing, the proponents will use cost plus pricing method where in the

mark-up is based on the desired but a reasonable price to come up with a profit. The price

of Pinoy Style Fried Rice is P 30.00 per box.

Table 7
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Price of the Product – Pinoy Fried Rice

Cost of Number of Cost per

Quantity Ingredient
Ingredients Servings Serving
8,000 g Rice P 320.00 100 P 3.20
200 ml Cooking Oil 11.80 100 0.12
350 g Garlic 70.00 100 0.70
1,500 g Ground Pork 234.00 100 2.34
250 g Cubed Carrots 66.66 100 0.67
250 g Shredded Cabbage 41.67 100 0.42
1,100 ml Beaten Eggs 104.50 100 1.05
150 g Pepper 30.00 100 0.30
250 g Salt 7.00 100 0.07
200 ml Soy Sauce 12.00 100 0.12
225 g Spring Onions 37.58 100 0.38
7 cups Malunggay leaves 35.00 100 0.35
1 pc Rice Box 100 2.00
1 pc Biodegradable Spoon   100 0.96
  min LPG   100 2.78
    Labor   100 0.39
    Total Cost   100 P 15.84
Mark-up 47.21% 14.16
Selling Price P 30.00

Promotional Strategy

The Pack N’ Lunch would provide a tarpaulin on the cart to attract the potential

customers. Also, the food cart itself promotes the business through its pleasing design.

Place Strategy
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Pack N’ Lunch will be strategically located along F. Pimentel Avenue, Barangay

2, Daet, Camarines Norte. The location is situated infront of Camarines Norte State

College Main Campus. The said location, at times is teeming with people especially

when there is traffic which is very favorable to the business. Also, the visibility of the

business to the potential customers is considered.

Distribution Strategy

The proposed business will reach out to its target market through a food cart. This

type of distribution will give ease of ordering and lessen the waiting time in serving the

product.

Table 8

Promotional Expense

Description Cost
Tarpaulin (1 piece) P 300.00
Total P 300.00
Source: Renan Advertising Services

Table 9

Marketing and Research Expense

Description Cost
Marketing and Research Expense P 2,500.00
Total P 2,500.00