2.

1 MARKET STUDY

2.1. Study of Demand

Table 2.1.1 Annual Volume of Demand for the past Ten Years

Year Local Markets/Vendors

(kgs.)
2010 25,232
2011 26,560
2012 27,956
2013 30,980
2014 31,732
2015 32,612
2016 34,328
2017 36,132
2018 38,036
2019 40,040

Table 2.1.2 Projected Annual Volume of Demands for the next five years

Year Local Markets/ Vendors

(kgs.)
2020 44,044
2021 50,650
2022 58,248
2023 66,985
2024 77,033

The methods used is barometric method that is based on the past demands of the product. We
tried to project the future trend of the product by estimating 15% increase in demands in each year.
 The potential buyers of our products are the local consumers in the province of Zamboanga del
Sur, Lanao del Norte, Del C and Valenciano Food Products Incorporated.

2.2. Study of Supply

Table 2.2.1 Annual Volume of Supply for the past ten years

Year Local Farmers from Lanao Del Norte Total Supply

Molave
2010 22,940 1,148 24,088
2011 24,148 1,208 25,356
2012 25,416 1,272 26,688
2013 26,756 1,336 28,092
2014 28,164 1,408 29,572
2015 29,648 1,484 31,132
2016 31,208 1,560 32,768
2017 32,848 1,644 34,492
2018 34,580 1,728 36,308
2019 36,400 1,820 38,220

Table 2.2 .2 Projected Annual Volume of Supply for the next five years

Year Local Farmers from Lanao Del Norte Labangan Calamansi

Molave Plantation
2020 46,246 2,202 2,202
2021 53,689 2,026 2,533
2022 62,325 1,747 2,912
2023 72,343 1,340 3,349
2024 83,965 770 3,852

The methods used is barometric method that is based on the past demands of the product. We
tried to project the future supply of the product by estimating 15% increase of supply in each year. Out
15% supply, we assume that 5% will be supplied by Labangan Calamansi Plantation, 5% will be coming
from the local farmers from Molave and the other 5% from the Lanao del Norte. This 5% supply of Lanao
del Norte will be assumed to be decreased by 1% in each year. And the 5% supply of the Local farmers
from Molave is increasing by 1% in each year.

The potential buyers of our products are the local consumers in the province of Zamboanga del
Sur, Lanao del Norte, Del C and Valenciano Food Products Incorporated.

2.3. Competitive Position

The prevailing prices of Calamansi in the market per kilo is P30.00. As to Labangan
Calamansi Plantation, since it is new to the market the price will be P20.00 per kilo sold from
the farm gate only. The fruits have thin peel, be nearly seedless and very juicy, have a minimum
of juice content of 20 to 25% be undamaged and unmarked and have a firm glossy peel.

Picture

2.4. Marketing Program

The present marketing practices of the competitors are to connect with the local
negotiators and these negotiators will be the one to sell the products to the local vendors. The
terms of sale is between the Labangan Calamansi Plantation and the middlemen, upon sale, the
middlemen will have the ownership of the goods in exchange for a money price. As to price,the
LCP has a selling price of P20.00 per kilo wherein the middlemen can have a 10% discount in
every 100 kgs. of Calamansi product. The channels of distribution is through intermediaries
wherein small retailers and agents are used to help coordinate a large supply of product. Such
as from farm gate to middlemen and middlemen to vendors. The vendors will be the one to
pick up the products from the farm gate. The location of sales outlets will be on the plantation
site wherein the warehouse is situated. Probably, the marketing problem that may be
encountered is that the middlemen won’t be able to get a buyer because of strong competition
from the existing local farmers wherein they are offering a free delivery scheme. Hence, the LCP
would have a free delivery scheme provided that the delivery area is within Pagadian City.
2.5. Market Share

SUPPLY

6%
4%

90%

Local Farmers from Molave Lanao del Norte Labangan Calamansi Plantation

The existing local farmers of Molave and Lanao del Norte sell their products directly to
the consumers since they are small producers of the product. At first the LCP will have the 4%
market share because the Calamansi Tree will produce fruits at its peak after its first five years.
The strategy will be opted by the LCP to maintain and increase its market share is through
expansion of its distribution channels (such as coordinating with the government agencies),
strengthening customer relationships, innovation of agricultural farming.

2.6. Socio-Economic Contribution to the Phil. Economy

The LCP will hire contractual workers from its locality at least 20 persons for planting
stage and 20 persons for harvesting stage. During the first five years of operation, the LCP will
have at least five regular workers for the maintenance of the plantation. After five years of
operation, there will be additional five regular workers to be hired. Upon registration, the LCP
will obtained business permits and licenses and later on will pay taxes to the government.