Chapter I

MARKET STUDY

Market study is a study that analyzes market demand for a particular product or

service. It analyzes the activities in a market that have influences as location, demand,

and competition which may or may not affect the value of property. This will cover the

size, nature and growth of total demand for the product, the description of the product to

be sold, the supply situation, the different factors affecting the market and appropriate

marketing strategies.

A. Market Description

E.O.N Enterprise was the first one to produce a product that can be used as an

attaché case and help desk in the Philippines. The demands for Portable Help Desk in

the country are influenced by the start of the school year since the product is particularly

made for the students. The company will provide the needs and wants of the students

that they can use for their daily lives and activities, and will lessen the things they have

to bring. The company also have to compete with some companies that are producing

different school supplies that are somehow similar and related to the product. The

Portable Help Desk will be distributed in Bauan, Batangas area. Our target markets are

students and office workers who usually use an attaché case to fix and arrange their

papers or documents.

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B. Product Description

Target Market

The main users of E.O.N Enterprise’s newest launched product are those people

who always need to do something wherever they are. Its design would perfectly fit their

habits. Students and employees are the chosen target market of this product because

we know that they have a lot of workload, files and work materials to deal with daily.

Also, the company is targeting the nearby municipalities.

C. Demand-Supply Analysis

Demand is an economic principle referring to a consumer's desire to purchase

goods and services and willingness to pay a price for a specific good or service. Holding

all other factors constant, an increase in the price of a good or service will decrease the

quantity demanded, and vice versa. Market demand is the total quantity demanded

across all consumers in a market for a given good. (Chappelow, 2019)

Supply is a fundamental economic concept that describes the total amount

of a specific good or service that is available to consumers. Supply can relate to

the amount available at a specific price or the amount available across a range of

prices if displayed on a graph. This relates closely to the demand for a good or

service at a specific price; all else being equal, the supply provided by producers

will rise if the price rises because all firms look to maximize profits. (Kenton,

2019)

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 The handbags markets are driven by the rising fashion industry, with handbags

playing as a major fashion statement. Also, the increasing social media influence on the

consumers from Instagram and Twitter is responsible for the inclination of potential

consumers toward the market. Since the majority of the global young adult population is

engaged in these social media platforms, handbag companies are targeting their

product range at this age group.

The global tote bags market is forecasted to grow over 5% during the period

2019-2023, according to the latest market research report by Technavio.

Figure 1

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 Table 1

Schedule of Demand of Portable Help Desk

For the year ended 2020

Number of products
that respondents Frequency of delivery
Store Name want to purchase of the order No. of Orders (Annually)
from E.O.N
Enterprise
Faner’s Store 10 Monthly 120
Paña’s Store 5 Weekly 240

Lopez’s Store 10 Monthly 120

Ysabelle’s Merchandise 5 Weekly 240

UniQueen’s Store 10 Quarterly 40

Margarita’s Store 5 Monthly 60

Stanley’s Store 5 Weekly 240

Castor’s Store 10 Monthly 120
Elsa’s Store 5 Quarterly 20
Castillo’s Store 5 Quarterly 20
R.A.A’s Store 5 Quarterly 20
Shiela and Keith’s Store 5 Quarterly 20
Magboo’s Store 5 Monthly 60
Kriszel’s Store 5 Weekly 240
Thes’ Store 5 Weekly 240
Total 1,800

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D. Price Study

The proponents based its product price on the computation of the total cost of

direct materials and direct labor divided by the number of production units made. They

also added markup on their proposed product to the retailers.

A mark up add-on is included as a percentage rate which is basically determined

consider aspects interact and external factors surrounding the company to achieve

sustainability within the industry.

Price is the money that customers must pay for a product or service and is the

amount of money that has to be paid to acquire a given product.

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 Table 2

Price Computation Schedule

PRICING
DIRECT MATERIALS 232,600.00
DIRECT LABOR 368,460.00
TOTAL 601,060.00 The
DIVIDED BY THE NO. OF UNITS
selling 1,800.00 price
PRODUCED
UNIT COST 333.92
of
0.37
X MARK-UP RATE
MARK UP 123.55
ADD: UNIT COST 333.92

457.47

SELLING PRICE PHP 458.00

Portable Help Desk is Php458.00 per piece for retail price

E. Factors Affecting the Market

E.O.N Enterprise produced a product that is made of carton and they have

decided to make it affordable as much as possible since it is made specifically for

students. Since the number of students is increasing, the company will provide a

product that can help them to lessen their things because the attaché case has enough

space to put something inside it. The price of the product is affected by the law and

demand of supply as well as the consideration for the students in order for them to

purchase the product. However, there are some factors that could possibly lead to

increase of the product specifically the portable help desk. One of the most vital factors

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is when the school year starts it’ll increase the number of consumers and buyers. The

market factors are influenced by the prices of the materials being used for the

production, these includes carton, cloth made from cotton and so on as well as the

weather conditions, possible hazards and disaster, politics and even the trade politics.

The production of Portable Help Desk needs a lot of time and hard work

especially during the cutting process of the product. This is one of the reasons why the

price of Portable Help Desk will increase. However, there will also be decrease of

demand as the school year ends and when the vacation starts.

Product Category

Product refers to the tangible offering of a firm that satisfies the customer’s needs

and wants. The proponents have conducted study about the material used to produce

the product which is a thick carton. They found out that using think carton is good for

our product and that could sustain the quality of it by covering it with thick cloth.

E.O.N Enterprise is a manufacturing type of business that buys raw

materials/supplies and used to produce its product. The product is a Portable Help Desk

that is made up of carton. This product is very helpful not only for students and office

workers but also to the environment since the proponents decided to use an eco-

friendly material.

With these characteristics, the proponents believe that the product will be

accepted and patronized by the market. Portable Help Desk will satisfy not only the

needs and wants of the consumers but also the budget conscious consumers because

it is an affordable, good quality.

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F. Marketing Program

The capacity of the product to be produced is enough for the possible consumers

and buyers. The availability of the product is affected by some risk factors that should

be solved and considered when finding a solution for the sudden increase of prices of

the materials needed. This includes the seasonality, weather conditions, trade policies

and operations of the competitors and other businesses. Because of the volatility of

carton prices, it is advisable to buy a lot of carton when the prices are low in order to

lessen the cost for the production and distribution.

This step would help in reducing the company's budget for the production since

they have enough materials to do the product. It would also help to make sure that the

company won't experience any inadequate resources.

Distribution Network of Portable Help Desk

Figure 2

E.O.N
Retailers Consumers
Enterprise
This shows the distribution network of E.O.N Enterprise will have

retailers/wholesalers for the distribution of Portable Help Desk. It will also promote not

only the product but the enterprise as well.