3.

0 MARKET STUDY

A. Market Environment

1. Demography

Demography examines the size, structure, and movements of populations over

space and time. Since The Container is located at the heart of the city wherein crowded

and potentially funnel of people coming from different places, it is a perfect place to dive in and

try the most efficient and unique food place.

2. Economic Factors

 The Philippine economy is projected to continue on its expansionary path and grow at an
annual rate of 6.7 percent in both 2018 and 2019. In 2020, growth is expected to level at 6.6

percent. Despite the rising concerns about health in the society, this particular industry goes

higher and higher in growth every year. It will give numerous opportunities that Container can

exploit to boost its performance.

3. Socio and Cultural Factors

Socio-cultural factors can involve social attitudes, beliefs, education, legal structure and

political ideology. As the Philippines become more diverse through its people, tastes,

companies strive to target demographics using marketing styles that are sensitive to individual

attitudes and practices. The importance of diversity in marketing has grown in response to the

increasing diversity of the population.

 4. Technology

Advances in technology have revolutionized how restaurants reach out to masses over wider
geographical regions, engage with the public, promote their products/services and boost their
sales (Jin, Line & Merkebu, 2015). Technology also helps a business understand its cash
flow needs and preserve precious resources such as time and physical space. With the help of
technology, The Container would be able to save time and enhance its visibility and sales and to
create brand awareness.

5. Competition

Competition analysis indicates assessment in differentiating the product, price, location,

promotion, and strategies existing in every potential competitor. It will provide an offensive and

defensive strategic context to identify market opportunities and threats. Therefore, competitor

analysis evaluates what The Container plays up in order to attract the Target Market.

B. Marketing Mix

1. Target Market

By the use of demographic segmentation using salary and psychographic segmentation

using interest; The target of The Container consists of employees, professionals, students from

both low and middle income that has daily allowance or budget above P60 who are working or

residing around Iligan City particularly at heart of the City.

2. Product

The Container offers variety of food that provides healthy and premium fast food. The said

business will sell products such as: food on a bowl, sandwiches, drinks and fruit cups.
 3. Pricing

The Container uses a mark-up on cost as a pricing strategy. It is perceived as a value that

is being added to the total cost of the product in order to produce a selling price that guarantees

the transparency of a good profit. This aims to cover labor, utilities, and raw materials cost, gas

and any anticipating expenses for possible future inflation.

4. Advertising and promotions

Undoubtedly, online marketing is the easiest access and broad platform to promote a

product. The Container utilizes Facebook and Instagram to advertise and attract the target

market. The company also does personal selling or telemarketing because the company firmly

considers that effective selling relies on good interpersonal and communication skills. Using all

these promotional tools, the company expects to have a positive result.

5. Channel of Distribution

It is a store-based company that will do direct distribution to its market in flexible buying

hours. The company and its product to be sold can be conveniently located by providing store

location in order for the people to directly recognize the product that the company is going to sell

and will easily visible the location of the store. The company ensures the product that will be

given to the customers are clean and fresh using appropriate packaging until the point of sale.
C. Market Analysis

1. Demand

The proponents presented the result of the survey through graphs to have a better image

of the answers of the respondents. In order to determine the potential volume of units to

produce, the Container conducted a survey.

1.1 Market Survey

Figure 1 shows that (54.1%) of the respondents prefer fast food. (23%) on Fine

Dining restaurants, (16.4) Cafeterias and (6.6) on Bars.

 Figure 2 shows that (45.9%) of the respondents prefer Counter Service. (34.4%) Tablr

Service. (11.5%) Buffet Service and lastly, (8.2%) on Self-Service.

Figure 3 shows (39.3%) of the respondents prefer coffee. Both water and soft drinks

are chosen by (23%) of the respondents. Lastly, (14.9%) chooses juice.

 Figure 4 shows that (50%) of the respondents are willing to spend 100 pesos and

above on fast food. (32%) spends over 151 pesos to 250 pesos. And, (10%) are willing to spend

250 pesos and above.

 Figure 5 shows that (44.3%)of the respondents chose Rice Meal. Another (18.0%) for

Rice Meal 1 and snacks. (3.3%) on Sandwiches/Burger and (3.3) for Fruits and Vegetables.

Figure 6 shows that (34.9%) of the respondents eats on fast food weekly. (19.0%)

monthly, (17.5%) eats on a daily basis, another (17.5%) occasionally and (11.1%) never eats.

Figure 7 shows that (41.0%) of the respondents want catchy trendy atmosphere. While,

(19.7%) prefers dimmed light. (18.0%) Contemporary interior, and (11.5%) into Ambient light.
 Figure 8 shows that (52.4%) of the respondents prefer near or center of the city for their

chosen food place location. (39.7%) for suburban areas and (7.9%) is for secluded areas.
 Figure 9 shows (60.7%) of the respondents would like to experience good food on a food

and beverage service. Both (18.0) for unique place and comfort.

Figure 10 shows (96.7%) of the respondents would like to visit again in The Container

especially when hygiene is being prioritized. The remaining (3.3%) answered no.
 Figure 11 shows (95.1%) of the respondents enjoyed on the service and total experience

offered by The Container. Meanwhile, the (4.9%) answered no.

Figure 12 shows that (96.7%) of the respondents are interested in trying out on this newly-

established food place. While the (3.3%) answered no.

1.2 Findings of the Market Survey

1.2.1 Age

1..2.2 Home Address

 1.2.3 Gender

2. Supply

The container is much particular with how well-organized production area, complying with

good manufacturing produces and ensures that all food, including the employees are complying

the health and food safety standards.

3. Forecasted Number of Customers and Sales

DINING PERIOD MAXIMUM ESTIMATED SEAT

CAPACITY PERCENTAGE OCCUPANCY

MORNING 125 40% 50

AFTERNOON 125 60% 75

EVENING 125 80% 100

The table below shows the average sales per day of the combination of all prices of meals,

snacks and beverage.

DINING PERIOD MAXIMUM ESTIMATED SEAT

CAPACITY PERCENTAGE OCCUPANCY

MORNING 50 50 2,500
AFTERNOON 50 75 3,750
EVENING 50 100 5,000

3.1. Food and Beverage

3.1.1 Food sales

FOOD SALES PER MEALS/SNACKS

Rice Meals - 63.00 Morning – 12, 700

Add-ons - 16.00 Afternoon – 19, 050

Snacks - 50.00 Evening – 25, 400

Pasta - 80.00

Desserts - 45.00

Total: 254 P 57, 150

 3.1.2. Beverage sales

BEVERAGES SALES PER BEVERAGE

Milktea - 80.00 Morning – 10,500

Iced coffee – 45.00 Afternoon – 15,750

Iced tea – 45.00 Evening – 21,000

Softdrinks – 20.00

Water - 20.00

Total: 210 P 47, 250

3.2 Annual Sales

ANNUAL SALES

Food P 20,574,000

Beverage P 17, 010, 000

P 37, 584, 000