Demand will vary from year to year in accordance to the population growth of the

consumers. RDL Beauty and Cosmetic Company used the data of Socio- Economics Indicator
of Davao City for the year 2015 and 2018 population projections were used to estimate the
demands within the study for each year period of 2020 to 2024. The projected demand in
quantity as you can see in table below 10% of the estimated population of each year avail our
product Agree Juice.

Table 1. PROJECTED DEMAND

Year 330ml 350ml 500ml

2022 3,905,600 4,604,443 6,838,101

2023 3,910,450 4,610,900 7,064,234
2024 3,915,000 4,625,200 7,282,712
See Appendix 1

The area of study deals with the direct competitor’s performance in the distribution of
RDL products in the market. The table shows the projected supply of RDL Beauty Products with
five variances in the next five years. The increase in supply is determined by the increase in
population of the market in for the next five years by 5% each year.

Table 2. PROJECTED SUPPLY

Year 330ml 350ml 500ml

2022 1,942,397 2,913,595 4,855,993

2023 1,985,000 3,100,250 5,112,240
2024 2,010,500 3,105,390 5,591,474
See Appendix 2
 After the computation of the demand and supply for the proposed project, the next step
is to compare these two factors to determine whether there is a market for the service to be
offered. The propose project which is the Agree Juice products with three variances shows
that there is a market because the demand is greater than supply. The unmet demand is the
difference between demand and supply. And unmet/unserved demand happened because of
these three factors population growth, shortage of man power due to skeletal work force and
the unavailability of the raw materials. This table shows the total supply and demand of the
three variances of products and the unmet demand.

Table 3. DEMAND – SUPPLY ANALYSIS

Year Demand (D) Supply (S) D-S GAP Percent

-1 -2 -3 (4)=(2)-(3) Unserved
(5)=(4)/(2) x
100%
2022 15,348,144 9,711,895 5,636,249 36.72%
2023 15,585,584 10,197,490 5,388,094 34.57%
2024 15,822,912 10,707,364 5,115,548 32.33%
Market
Share

2022 408,400
9,711,895 +408,400 4%

2023 549,000
10,197,490 + 549,000 5%

2024 675,790
10,707,364 + 675,790 6%

NOTE: The market share formula is

Your proposed sales X 100%

Total supply available for the same year
including your supply or your sales
APPENDIX 1 - POPULATION GROWTH FIGURES DATA
 YEAR   POPULATION    
65 yrs.
  13-17 yrs.’ old 18-64 yrs. old TOTAL
-above
2015 161,643 973,416 65,737 1,200,796
2018 173,069 1,042,138 70,378 1,285,585
Source: Socio- Economic Indicators 2018 of Davao City; City Planning Development
Office

Arithmetic Straight Line Method:

Take the population for the latest year
(2014) 1,285,585
Less: The population for the first year
(2209) 1,200,796
The Difference (increase/decrease)
84,789

84,789 divide by 4 (2015-2018)

21,197

PROJECTED POPULATION GROWTH

YEAR TOTAL POPULATION GROWTH

2019 1,285,585 + 21,197= 1,306,782

2020 1,306,782+ 21,197 = 1,327,980

2021 1,327,980 + 21,197=1,349,177

2022 1,349,177 + 21,197 = 1,370,374

2023 1,370,374 + 21,197 =1,391,571

2024 1,391,571 + 21,197 = 1,412,769

PROJECTED DEMAND FIGURES
 Target Average
Number of
Projected market Frequency Projected
Projected Year Orders Per
Population Buying from of Demand
Customer
the Area Purchase
137,0
2022 1,370,374 112 1 15,348,144
37
139,1
2023 1,391,571 112 1 15,585,584
57
141,2
2024 1,412,769 112 1 15,822,912
76
Assumption: 10% of the population will be the target market from the area and there is only one (1)
order per customer.
FREQUENCY OF PURCHASE (FOP) COMPUTATION:
No. of
Choices Respondents in Weight FOP
%
once/week 20% 1 48
twice/week 30% 2 96
thrice/week 50% 3 144
NOTE; 48 is computed as once/week, 1 X 4 weeks in a month X 12 months
in a year.

WEIGHTED AVERAGE FOP = 1(48) + 2(96) + 3(144)

6 (OR 1+2+3)
= 112
APPENDIX 2

SUPPLY FIGURES DATA (2018)

COMPETITORS TOTAL

Competitor A 2,340,000
Competitor B 2,650,000
Competitor C 3,000,000

TOTAL (2018) 7,990,000

TOTAL
YEAR
PROJECTED
 SUPPLY
2018 7,990,00
2019 8,389,500
2020 8,808,975
2021 9,249,424
2022 9,711,895
2023 10,197,490
2024 10,707,364
It is expected that supply will increase 5% per year.