MARKETING ASPECT

CURRENT MARKET DESCRIPTION / DEMAND ANALYSIS / SUPPLY ANALYSIS

 Current market discription

The Karisyuhan Catering Services belongs to the food servicing or catering

industry since it will be offering foods and catering service for the people in Abuyog,
Leyte where the target market and competitors are located.
SWOT analysis
Strength
 Services/products
One of the major strength for Karisyuhan is the quality of the products/service.
Uniqueness of its products/services give it certain edge compare to other catering
services within the area.
 Location
The strategic location for Karisyuhan makes it more accessible to potential
customers. And the more potential customers pass by, the more exposure it gets.
 Affordability
The catering service of Karisyuhan is offered at a reasonable price comparable to
those existing baked products in the market.
 Ambiance
The business is committed in making a friendly, welcoming and vibrant
atmosphere which will make hiring Krisyuhan’s catering services a pleasurable
experience.
Weaknesses
 New in the industry
Being new in the food servicing or catering industry means that Karisyuhan may
lack of experience in some business aspects particularly in catering services.
 Price sensitivity
The sudden increase in price of supplies and raw materials such as those needed
in making the menu will affect the profit of the business. Most consumers are
sensitive in price increase, the business cannot easily increase the service/product’s
price because it may result to the decrease in market share.
 High rental cost
Due to its location in commercial area, the business is expecting lesser revenue
because the monthly rent is relatively expensive.
 Perishable product
Because the product is food related, one of the problem is the perishability of
the product. For instance, something might happen to the food from the moment of
cooking it up to serving it to the customers.
Opportunities
 Market growth
The food servicing industry in our country is growing at a fast speed and the
demand for it is never ending.
 Growth potential
Karisyuhan Catering Services have the opportunity to grow and expand in the
near future with the right decisions and strategies.
 Trends
Latest trends in medias like the social networking sites such as facebook, tiktok
and youtube can be an opportunity for the proposed business to develop and
explore new ideas for the products/services.
Threats
 Environmental/external factor
The very first threat for businesses nowadays especially those who belongs to
food industry is the pandemic. Many food related businesses have closed so it will be
a big challenge for Karisyuhan on how to operate profitable despite of the pandemic.
The proposed business even limit its customers to a maximum of 50 person to be
serve only so these means that it will not yet open for a large occasion inquiries. This
is done and other related action such wearing of facemask and facesheild as well as
limiting 4 person per table only with following the health protocol against the
pandemic.
 Competitors
Some of our competitors have been operating for a decade or m ore, so there
businesses are well established and they are more experienced in operating a
catering service. Other competitors also offers lower price range in their
products/services because they don’t pay rents and there regular suppliers provides
them with large discounts.
 Loyal customers
Competitors have maintained some loyal customers, who might disregard our
products/services.
 Product substitutes
The presence of other businesses that offers alternative product/service such as
restaurants and fast food chains imposes a threat because potential customers
might decide to go in these businesses instead of inquiring a catering service for
their occasions.

 Demand and supply analysis

Projected demand (five years)

The target customers of Karisyuhan Catering Services are people in the
community and in nearby municipality, private establishments, LGU and offices.
There are 5,000 plus of them and since it is difficult to have a lot of respondents, I
randomly choose 50 of them as my respondents to represent as a whole
For the computation, I get the total number of respondents of the survey
questionnaires multiplied by the percentage of the respondents who answered
strongly agree and agree that they hire/inquire catering service when they celebrate
occasions.
 I hire catering service when celebrating
occasion
Strongly agree
Agree
14% Undecided
10% Disagree
Strongly disagree
4% 52%

20%

Number of respondents who hire/inquire catering services:

=Total number of respondents x percentage of catering services buyers
=50 x 72%
=36(3,600) out of 50(5,000) respondents are buyers of catering services

To determine the demand for Karisyuhan Catering Services, I asked a follow up

questions in my survey questionnaires to those respondents who answered strongly
agree and agree that they hire catering service when they celebrate occasions. If
they would like to hire Karisyuhan’s catering service.

I would like to hire Karisyuhan's catering service Number

of

3% Strongly agree
6%3% Agree
Undecided
Disagree
33% 56% Strongly disagree

respondents who would like to hire/inquire Karisyuhan’s catering services:

=Total number of respondents who are buyers of catering services x percentage of
respondents who would like to hire Karisyuhan’s catering service
=36 x 89%
=32(3,200) out of 36(3,600) respondents who are buyers of catering services would
like to hire Karisyuhan’s catering service.
There are a total of 3,600 annual demand for catering service in Abuyog since
people would likely to hire catering services only once a year. Wherein, 3,200 of it is
potential demand for the service of the proposed business.
In reference from the annual population growth of Abuyog, Leyte which is
0.79%, I have come up with below 5 years projection of demand for catering
services.

YEARS
20x1 20x2 20x3 20x4 20x45
Projected 3,600 3,628.44 3,657.10 3,686 3,715.12
demand

Projected supply (five years)

I have listed a total of 5 catering services which are Zethus Kyle Catering
Services, Chammel Catering Services, Judge Bar Catering Services , JL Catering
Services , EB Catering Services who are supplying the demand for catering service in
Abuyog, Leyte. Since supply is directly proportional with demand, projected supply
for 5 years will have an annual increase of 0.79% also.

YEARS
20x1 20x2 20x3 20x4 20x45
Projected 5 5.04 5.08 5.12 5.16
supply