CHAPTER II

MARKETING ASPECT

The Marketing aspect details the different activities and discusses the

Industry Background, Market Research, Demand Analysis, Supply Analysis, Gap

Analysis, Projected Sales, S.W.O.T Analysis, Marketing Strategies, Marketing

Mix Strategies(4P’s), Direct Distribution Channel, Indirect Distribution Channel,

Contingency Plan, Supply Chain, and Supplier Information.

Specific Objectives:

 To specify the Target Market;

 To specify the Marketing Strategies in promoting the product;

 To determine the Demand and Supply for the product;

 To define the company’s 4 P’s.

9
 10

Industry Background

Chicken Hamonado is adopted from the dish which is the pork hamonado.

Pork hamonado is one of a kind dish of the Filipino family especially in the

holiday season. This pork hamonado comes from the twist of Asians having a

sweet and savory with a touch of soy sauce.

While in the American style, the sweetness is provided by fruit cocktail

syrup for a tropical take on the usual sugar added, while crushed garlic adds an

earthier element which still blends well with the soy sauce and keeps the dish

from being too cloying to the palate.

In the Philippines, “hamonado” refers to a dish cooked liked ham but

sweetened with fruit juice – pineapple juice, most often, although others juices

may be substituted. Hamonado is a popular party dish especially during

Christmas and New Year (CASA Venaracion Menu, 2014)

Since the Filipinos are very creative and love to explore the world of

cooking, the chicken hamonado is invented just like as pork hamonado. The

Filipinos have an innate sweet tooth because they created sweet dishes with

different meats like Sweet and Sour Pork and Fish and this Chicken Hamonado.

To extract and enhance the chicken hamonado flavor, the meat is cured for

several hours.

Chicken hamonado or hamonadong manok is chicken cooked in

pineapple juice. It uses the pineapple, condiments and spices as a marinade.

The customers will surely enjoy its sweet fruity taste of pineapple juice added to

this chicken as a marinade together with soy sauce, vinegar, peppercorns, onion
 11

and garlic. To extract and enhance the chicken hamonado flavor, the meat is

cured for several hours. This dish only involves three stages: the curing or

marinating, frying and simmering. After these processes the end product comes

in a really worth the long cooking process. Some people simply bake the meat in

the juice while others stuff and roll the chicken like a log before cutting in serving

slices. Whichever way the chicken hamonado is done, this dish is guaranteed to

satisfy your palate and you will be craving out for more.

Chicken hamonado is especially good for holiday seasons and also good

for carinderias, the typical Filipino eatery, have found a cheaper way to include it

in their everyday menu, celebrations for different occasions and a regular day for

Filipino table which makes the family eat and reunite together (Panlasang Pinoy,

2012).

The Philippine’s Growth Rate of Processed Food shows that the proposed

product which is Chicken Hamonado is feasible and have a high potential to be

availed by the target market which results to high sales and profits (Statista,

2016).

Figure 2: Processed Foods Growth Rate

Figure 5 shows the last Five (5) years growth rate of Processed Foods in

the Philippines where the S&S Trading Company’s product belong.

 12

Marketing Research

The Proponents conducted a study in selected barangays in Pasig City

which are Barangays Sta. Cruz and Bambang for the Retail operations. The

target market of the company is the Household’s. Teletech Call Center Company

is the selected company of the Proponents for Employees and Barangays

Malinao, Pinagbuhatan, Santolan and Manggahan for Wholesale, including

Canteens and Stalls selling processed foods.

Sampling Techniques

The Proponents used the Slovin’s Formula to determine the Sample Size

of Households for Barangay Sta. Cruz and Bambang.

The Proponents also used the Systematic Technique to determine the

interval of the two (2) barangays that will be included in the survey. The

Proponents decided to use actual counting for the employees of Teletech Call

Center Company and for the rest of the wholesale target market.

N
Sloven’s Formula: n=
1+ N e 2

Where:

n= Sample Size

N= Population

e= Margin of error (0.05)

 13

 Barangay Sta. Cruz:

N
n= 2
1+ N e

2,508
n=
1+2,508 (0.0025)

2,508
n=
7.27

n=345

Using Sampling Technique (Systematic):

N
k=
n

2,508
k=
345

k =¿7

 Barangay Bambang:

N
n= 2
1+ N e

3,593
n=
1+3,593( 0.0025)

3,593
n=
9.9825

n=360

Using Sampling Technique (Systematic):

N
k=
n

3,593
k=
360
 14

k =¿10

Market Analysis

Table 2

Summary of Respondents for Retail

Barangay/Company Number of Sample Interval Percentage

Household/ Size
Employees
Sta. Cruz 2,508 345 7 34.33
Bambang 3,593 360 10 35.82
Teletech Call Center Company at 1,170 300 - 29,85
Brgy. Oranbo Branch
Total 6,101 1,005 17 100.00

Table 2 shows the Summary of Respondents for Retail where the

proponents have two thousand five hundred and eight (2,508) household in

Barangay Sta. Cruz which have an interval of seven (7), three thousand five

hundred ninety-three (3,593) household in Barangay Bambang which have an

interval of ten (10) and one thousand one hundred seventy (1,170) in employees.

The Proponents used Slovin’s formula to get the sample size of the target market

and used systematic technique to households. The lowest sample size is three

hundred (300) which is Teletech Call Center Company at Brgy. Oranbo Branch

and highest sample size is three hundred sixty (360) which is Bambang.
 15

Table 3

Barangay Pasig Mega Market Talipapa Canteen/ Total Percentage

Eatery
Malinao 42 14 10 66 33.00
Santolan - 25 10 35 17.50
Manggahan - 30 12 42 21.00
Pinagbuhatan - 35 22 57 28.50
Total 42 104 54 200 100.00
Summary of Respondents for Wholesale

Table 3 shows the Summary of Respondents for Wholesale of S&S

Chicken Hamonado Trading Company at Barangay Malinao, Barangay Santolan,

Barangay Manggahan and Barangay Pinagbuhatan,

Demand Analysis

Retail

Table 4

Excess Income of Respondents for Retail

Excess Income Frequency Percentage

No Excess Income 28 2.95
Php 1 – Php 2,000 246 25.92
Php 2,001 – Php 4,000 299 31.51
Php 4,001 – Php 6,000 245 25.82
Php 6,001 – Php 8,000 69 7.27
Php 8,001 – Php 10,000 28 2.95
Php 10,001 – Php 12,000 13 1.37
Php 12,001 – Php 14,000 14 1.48
Php 14,001 – Php 16,000 4 0.42
Php 16,001 – Php 18,000 2 0.21
Php 18,001 – Php 20,000 1 0.11
Total 949 100.00
 16

Table 4 shows the Excess Income of Respondents for Retail. The highest

frequency of excess income is from Php 2,000-Php 4,000 which is two hundred

ninety (299) or 31.51 percent.

Table 5

Summary of Demand for Retail

Respondents Households Employees Total Percentage

Refusal 47 9 56 5.57
Not Capable 20 7 27 2.69
Invalid Data 33 14 47 4.68
Not Willing to Buy 18 6 24 2.39
Total Demand 587 264 851 84.68
Total Respondents 705 300 1,005 100.00

Table 5 shows the Summary of Demand for Retail. Out of one thousand

and five (1,005) respondents, eight hundred fifty-one (851) respondents or 84.68

percent are capable to buy which means that the product of the Proponents have

the high potential to be availed by the target market.

Table 6

Willingness to Buy

Response Households Employees Total Percentage

Yes 587 264 851 97.26
No 18 6 24 2.74
Total 605 270 875 100.00

Table 6 shows the Willingness to Buy Chicken Hamonado. Out of eight

hundred seventy-five (875) respondents, eight hundred fifty-one (851) or 97.26

percent are willing to buy the product while twenty-four (24) respondents or 2.74

percent are not willing to buy. The data gathered will be used to determine the

demand of the product.

 17

Table 7

Frequency of Buying

Frequency Households Employees Total Percentage

Weekly 175 72 247 29.02
Twice a Month 100 80 180 21.15
Monthly 312 112 424 49.82
Total 587 264 851 100.00

Table 7 shows the Frequency of Buying. Monthly got the highest demand

which is forty-nine percent (49%) and twice a month got the lowest demand

which is twenty-one point fifteen percent (49.15%). The data will be used during

the operating period. The Proponents will purchase products in a monthly basis.

Table 8

Quantity Preferred to Buy

Quantity Households Employees Total Percentage

1 189 117 306 35.96
2 248 84 332 39.01
3 102 42 144 16.92
Others:
4 29 8 37 4.35
5 12 10 22 2.59
6 7 3 10 1.18
Total 587 264 851 100.00

Table 8 shows the Quantity Preferred to Buy. The most preferred quantity

is two (2) that has the highest total number of respondents which is three
 18

hundred thirty-two (332) or 39.01 percent and the lowest is six (6) got one point

eighteen (1.18%). The results of purchases of respondents have a big effect on

the company’s profitability. The data will be used to identify the demand of the

product.

Table 9

Variety Preferred to Buy

Variety Households Employees Total Percentage

Sweet 324 160 484 56.87
Sweet & Spicy 263 104 367 43.13
Total 587 264 851 100.00

Table 9 shows the Variety Preferred to Buy. The Sweet variety is the most

preferred by the respondents which is four hundred eighty-four (484) or 56.87

percent while the Sweet & Spicy has few total respondents which is three

hundred sixty-seven (367) or 43.13 percent. The data shows that there’s a high

demand in every variety of the product that can be a source of high sales.

Table 10

Factor Considered Most in Buying Raw Chicken Hamonado

Factors Households Employees Total Percentage

Price 134 37 171 20.09
Quality 109 44 153 17.98
Taste 314 178 492 57.81
Packaging 30 5 35 4.11
Total 587 264 851 100.00

Table 10 shows the Factor to be Considered Most in Buying. Taste is the

most considered factor in buying which has the total respondents of four hundred
 19

ninety-two (492) or 57.81 percent and Packaging is the least factor considered

with the total number of respondents which is thirty-five (35) or 4.11 percent. The

data show that the Proponents must focus on the taste of the product.

Table 11

Celebrating Special Occasion

Response Households Employees Total Percentage

Yes 561 250 811 95.30
No 26 14 40 4.70
Total 587 264 851 100.00

Table 11 shows the number of respondents that are Celebrating Special

Occasion. Out of eight hundred fifty-one (851) respondents, eight hundred eleven

(811) respondents or 95.30 percent are celebrating Special Occasion. The data

show that most of the Filipinos are celebrating special occasion which will be

added to the sales of the Proponents.

Table 12

Willingness to Buy for Special Occasion

Response Households Employees Total Percentage

Yes 561 250 811 95.30
No 26 14 40 4.70
Total 587 264 851 100.00

Table 12 shows the Willingness to Buy for Special Occasion. Eight

hundred eleven (811) or 95.30 percent are willing to buy for special occasion out
 20

of eight hundred fifty-one (851) respondents. The data show that there’s a high

demand in every variety of the product that can be a source of high sales.

Wholesale

Table 13

Summary of Demand for Wholesale

Respondents Frequency Percentage

Refusal 11 5.50
Not Willing 3 1.50
Total Demand 186 93.00
Total Respondents 200 100.00

Table 13 shows the Summary Demand for Wholesale. The data show that

out of two hundred (200) respondents, One hundred eighty-six (186) or 93

percent are willing to buy and three (3) 1.50 percent are not willing to buy

Chicken Hamonado. The data will be used to determine the total demand for

wholesale.

Table 14

Willingness to Buy for Wholesale

Response Frequency Percentage

Yes 186 98.41
No 3 1.59
Total 189 100.00
 21

Table 14 shows Willingness to Buy for Wholesale. One hundred eighty-six

(186) or 98.41 percent are willing to buy for wholesale and three (3) or 1.59

percent are not willing to buy. The data will be used to determine the demand of

potential customers.

Note: 11 of the Respondents refused to answer the survey.

Table 15

Frequency of Buying for Wholesale

Frequency Sweet Percentage Sweet & Spicy Percentage

Twice a Week 28 15.05 26 14.21
Weekly 63 33.87 62 33.88
Twice a Month 50 26.88 50 27.32
Monthly 45 24.19 45 24.59
Total 186 100.00 183 100.00

Table 15 shows Frequency of Buying for Wholesale. The data show sixty-

three (63) or 33.87 percent for Sweet and sixty-two (62) or 33.88 percent for

Sweet & Spicy of respondents preferred to buy weekly which is the highest

compare to twice a week, weekly and twice a month.

Table 16

Quantity Preferred to Buy per Bundle

Quantity Sweet Percentage Sweet & Spicy Percentage

1 - - - -
2 1 0.54 3 1.64
3 - - 7 3.83
4 4 2.15 12 6.56
5 28 15.05 48 26.23
6 8 4.30 19 10.38
7 8 4.30 13 7.10
8 28 15.05 20 10.93
9 5 2.69 3 1.64
10 45 24.19 22 12.02
11 - - 2 1.09
12 6 3.23 9 4.92
13 4 2.15 2 1.09
14 12 6.45 3 1.64
 22

15 37 19.89 20 10.93
Total 186 100.00 183 100.00

Table 16 shows Quantity Preferred to Buy per Bundle. The data show

forty-five (45) or 24.19 percent of respondents for Sweet want to buy most ten

(10) bundles and forty-eight (48) or 26.23 percent of respondents for Sweet &

Spicy want to buy most five (5) bundles. The data show that there is a demand

on the said products that will give the company a high sale.

Table 17

Variety Preferred to Buy

Variety Frequency Percentage

Sweet 3 1.61
Sweet & Spicy - -
Sweet and Sweet & Spicy 183 98.39
Total 186 100.00
Table 17 shows Variety Preferred to Buy. The data show that out of one

hundred eighty-six (186) respondents, one hundred eighty-three (183) or 98.39

percent preferred to buy both varieties and only three (3) or 1.61 percent

preferred to buy one (1) variety. The table will be used in company’s operation

that the company should focus more on the variety that respondents buy most.

Table 18

Factor Considered Most in Buying Raw Chicken Hamonado

Factors Frequency Percentage

Price 112 60.22
Quality 31 16.67
Taste 40 21.51
Packaging 3 1.61
Total 186 100.00
 23

Table 18 shows the Factor to be Considered Most in Buying Chicken

Hamonado. Price is the most considered factor in buying which has the total

respondents of one hundred twelve (112) or 60.22 percent. The data shows that

the company must focus how to maintain the price.

Computation of Demand

Table 19

Computation of Demand for Retail

Sweet Sweet & Spicy

Frequency Quantity Respondents Monthly Yearly Quantity Respondents Monthly Yearly
Demand Demand Demand Demand
Weekly 1 42 168 2,016 1 38 152 1,824
2 73 584 7,008 2 78 624 7,488
3 8 96 1,152 3 5 60 720
4 1 16 192 4 1 16 192
5 1 20 240 5 - - -
6 - - - 6 - - -
Total 125 884 10,608 Total 122 852 10,224
Twice a 1 43 86 1,032 1 28 56 672
Month
2 31 124 1,488 2 23 92 1,104
3 25 150 1,800 3 15 90 1,080
4 4 32 384 4 4 32 384
5 1 10 120 5 3 30 360
6 1 12 144 6 2 24 288
Total 105 414 4,968 Total 75 324 3,888
Monthly 1 112 112 1,344 1 43 43 516
2 65 130 1,560 2 62 124 1,488
3 49 147 1,764 3 42 126 1,512
4 15 60 720 4 12 48 576
5 10 50 600 5 7 35 420
6 3 18 216 6 4 24 288
Total 254 517 6,204 Total 170 400 4,800
Grand 484 1,815 21,780 367 1,576 18,912
Total
 24

Table 19 shows the different varieties preferred by the respondents to buy.

The table indicates the demand in quantity per variety of the company with the

total of twenty-one thousand seven hundred eighty (21,780) for sweet and

eighteen thousand nine hundred twelve (18,912) for sweet & spicy chicken

hamonado, respectively with the total demand in quantity for retail is forty-five

thousand and seventy-five (45,075). This will be use for the computation of retail

demand and gap.

Table 20

Summary of Demand for Birthday

Month Sweet Sweet &Spicy Total Percentage

(Quantity) (Quantity)
January 70 66 136 9.78
February 78 61 139 10.00
March 61 41 102 7.33
April 63 53 116 8.34
May 88 65 153 11.00
June 77 56 133 9.56
July 58 48 106 7.62
August 59 54 113 8.12
September 58 44 102 7.33
October 58 48 106 7.62
November 53 32 85 6.11
December 42 58 100 7.19
Birthday Total 765 626 1,391 100.00

Table 20 shows the Summary of Demand for Birthdays for retail. May is

the month that has the highest demand of celebrants which is one hundred fifty-

three (153) or 11 percent. The data show that there’s a high demand in every

variety of the product that can be a source of high sales. The full

computation of demand for birthdays attached on appendix C pages 144-145.

Table 21
 25

Summary of Demand per Frequency for Retail

Frequency Sweet Sweet &Spicy Total Percentage

Weekly 10,608 10,224 20,832 51.19
Twice a Month 4,968 3,888 8,856 21.76
Monthly 6,204 4,800 11,004 27.04
Total 21,780 18,912 40,692 100.00

Table 21 shows the Summary of Demand per Frequency for Retail.

Twenty thousand eight hundred thirty-two (20,832) or 51.19 percent of

respondents preferred to buy weekly. The Proponents will purchase products

most in weekly basis.

Table 22

Summary of Demand for Special Occasions

Occasions Sweet Sweet &Spicy Total Percentage

Birthday 765 626 1,391 31.74
New Year 157 241 398 9.08
Valentines 126 174 300 6.84
Christmas 1,049 825 1,874 42.76
Others:
Anniversary 169 103 272 6.21
Reunion 35 41 76 1.73
Mother’s Day 15 14 29 0.66
Father’s Day 8 12 20 0.46
Celebration 13 10 23 0.52
Total 2,337 2,046 4,383 100.00

Table 22 shows the Summary of Demand for Special Occasions.

Christmas is the most celebrated occasion that has the highest total number of

demand which is one thousand eight hundred seventy-four (1,874) or 42.76. The

data show that there’s a demand in every special occasion that can be a source

of high sales.

Table 23
 26

Summary of Demand per Frequency for Retail with Special Occasions

Frequency Sweet Sweet &Spicy Total Percentage

Demand Demand
Weekly 10,608 10,224 20,832 46.22
Twice a Month 4,968 3,888 8,856 19.65
Monthly 6,204 4,800 11,004 24.41
Special Occasion 2,337 2,046 4,383 9.72
Total 24,117 20,958 45,075 100.00

Table 23 shows the Summary of Demand per Frequency for Retail with

Special Occasions. Twenty thousand eight hundred thirty-two (20,832) or 46.22

percent of respondents preferred to buy weekly. Forty-five thousand and

seventy-five (45,075) is the total demand for retail with the special occasion.

Table 24

Summary of Demand per Variety for Retail with Special Occasions

Variety Yearly Demand Percentage

Sweet 24,117 53.50
Sweet & Spicy 20,958 46.50
Total 45,075 100.00

Table 24 shows the Summary of Demand per Variety for Retail with

Special Occasion. Sweet Chicken Hamonado got the higher total number of

demand than Sweet & Spicy. The data indicate that patronizing the two (2)

variety will lead to earn high profit.

 27

Table 25

Computation of Demand for Wholesale

Sweet Sweet &Spicy

Frequency Quantity Respondents Monthly Yearly Quantity Respondents Monthly Yearly
Demand Demand Demand Demand
Twice a
Week 2 1 48 576 2 1 48 576
3 - - - 3 4 288 3,456
4 2 192 2,304 4 4 384 4,608
5 15 1,800 21,600 5 15 1,800 21,600
6 4 576 6,912 6 2 288 3,456
7 4 672 8,064 7 - - -
10 2 480 5,760 10 - - -
Total 28 3,768 45,216 26 2,808 33,696
Weekly 2 - - - 2 2 48 576
3 - - - 3 1 36 432
4 2 96 1,152 4 4 192 2,304
5 5 300 3,600 5 15 900 10,800
6 3 216 2,592 6 13 936 11,232
7 4 336 4,032 7 9 756 9,072
8 18 1,728 20,736 8 14 1344 16,128
9 5 540 6,480 9 3 324 3,888
10 26 3,120 37,440 10 1 120 1,440
Total 63 6,336 76,032 62 4,656 55,872
Twice a
Month 5 4 120 1,440 5 9 270 3,240
6 - - - 6 3 108 1,296
7 - - - 7 1 42 504
8 6 288 3,456 8 5 240 2,880
9 - - - 9 - - -
10 7 420 5,040 10 10 600 7,200
11 - - - 11 - - -
12 5 360 4,320 12 6 432 5,184
13 2 156 1,872 13 1 78 936
14 8 672 8,064 14 3 252 3,024
15 18 1620 19,440 15 8 720 8,640
Total 50 3,636 43,632 50 2,832 33,984
Monthly 3 - - - 3 1 9 108
4 - - - 4 1 12 144
5 4 60 720 5 9 135 1,620
6 1 18 216 6 1 18 216
7 - - - 7 3 63 756
 28

8 4 96 1,152 8 1 24 288
10 10 300 3,600 10 11 330 3,960
11 - - - 11 2 66 792
12 1 36 432 12 3 108 1,296
13 2 78 936 13 1 39 468
14 4 168 2,016 14 - - -
15 19 855 10,260 15 12 540 6,480
Total 45 1,611 19,332 Total 45 1,344 16,128
Grand
Total 186 15,351 184,212 183 11,640 139,680

Table 25 shows the different varieties preferred by the respondents to buy

most. The data show that the respondents are willing to buy Chicken Hamonado.

This indicates that the respondents have a different taste preference, so the

company should focus more on the variety that the respondents buy most

because it helps the company earn high sales and gain customers loyalty.

Table 26

Summary of Demand per Frequency for Wholesale

Frequency Sweet Sweet &Spicy Total Percentage

Demand Demand
Twice a Week 45,216 33,696 78,912 24.36
Weekly 76,032 55,872 131,904 40.72
Twice a Month 43,632 33,984 77,616 23.96
Monthly 19,332 16,128 35,460 10.95
Total 184,212 139,680 323,892 100.00

Table 26 shows the Summary of Demand per Frequency for Wholesale.

One hundred thirty-one thousand nine hundred and four (131,904) or 40.72

percent of respondents preferred to buy weekly. The data indicate that the

company will be having an operation weekly.

Table 27

Summary of Demand per Variety for Wholesale

Variety Yearly Demand Percentage

 29

Sweet 184,212 56.87

Sweet & Spicy 139,680 43.13
Total 323,892 100.00

Table 27 shows the Summary of Demand per Variety for Wholesale.

Sweet Chicken Hamonado got the higher demand which is one hundred eighty-

four thousand two hundred twelve (184,212) or 56.87 percent than Sweet and

Spicy Chicken Hamonado which is one hundred thirty-nine thousand six hundred

eighty (139,680) or 43.13 percent. The data indicate that company has a high

demand for product Chicken Hamonado.

Table 28

Summary of Demand for Retail and Wholesale

Yearly Demand Percentage

Retail 45,075 12.22
Wholesale 323,892 87.78
Total 368,967 100.00

Table 28 shows the Summary of Demand for Retail and Wholesale.

Wholesale got the higher demand which is three hundred twenty-three thousand

eight hundred ninety-two (323,892) or 87.78 percent than retail. The total yearly

demand is three sixty-eight thousand nine hundred sixty-seven (368,967). The

data indicate that there is a bigger demand for wholesale which results to high

sales and profit.

 30

Supply Analysis

Table 29

Competitors’ Supply and Market Share

Competitors Monthly Yearly Market

Supply Supply Share
Direct Competitors
1.Food Haven 915 10,980 4.86
2.JT’s Manukan Grille 975 11,700 5.18
3.Amber Golden Spoon Restaurant 915 10,980 4.86
4.Puregold 1,200 14,400 6.37
5.The Round Table 985 11,820 5.23
6.Savemore 1,255 15,060 6.66
7.Dorie’s Catering Services 1,680 20,160 8.92
8.Marcess Catering Services 1,450 17,400 7.70
9.Longganisa Sorpresa 990 11,880 5.26
10.XO 46 Bistro Filipino 1,000 12,000 5.31
11.Jay-J’s Inasal 1,250 15,000 6.64
12.Liana’s 985 11,820 5.23
13.Jaynith’s 1,150 13,800 6.11
14.Alfa Mart 985 11,820 5.23
15.South Supermarket 1,450 17,400 7.70
16.Lilian's Catering 1,650 19,800 8.76
Total 18,835 226,020 100.00
 31

Table 29 shows the Competitors’ Supply and Market Share. The Dorie’s

Catering Services have the highest market shares which is 8.92%.

 32

Figure 3: Pie Chart for Competitors’ Market Share

Figure 3 shows the Competitors’ Market Share. Dorie’s Catering got the

highest part in the chart among the competitors. The available market share for

S&S Chicken Hamonado Trading Company is 38.74%.

Gap Analysis

Table 30

Demand and Supply Analysis

Year Demand Supply Gap Gap Percentage

2017 368,967 226,020 142,947 38.74
2018 409,996 251,153 161,330 38.74
2019 455,588 279,082 182,093 38.74
2020 506,249 310,116 205,528 38.74
2021 562,544 344,600 231,980 38.74

Table 30 shows the Five-year forecast of the Demand and Supply by

using 60% of 18.54 growth rate which is 11.12%

Table 31

DNI and Gap Analysis

DNI GAP
 33

Fixed Cost + DNI(quota) 7,758.16+12,500 GAP 142,947

Average Mark-Up 35.94 Competitors 16+1

Total 8,408.65
Months 12

DNI 564 GAP 701

Table 31 shows the computation for DNI with the total of five hundred

sixty-four (564) and GAP with the total of seven hundred and one (701).

Table 32

Company Demand

Demand Monthly Yearly Percentage

GAP 701 8,412 96.56
Actual Demand 25 300 3.44
Total 726 8,712 100.00

Table 32 shows the Company Demand. The yearly GAP is eight thousand

four hundred twelve (8,412) or 96.56 percent and the Actual Demand is three

hundred (300) or 3.44 percent with the total of eight thousand seven hundred

twelve (8,712),

Table 33

Future Company Market Share

Competitors Monthly Yearly Market

Supply Supply Share
Direct Competitors
1.Food Haven 915 10,980 2.98
2.JT’s Manukan Grille 975 11,700 3.17
 34

3.Amber Golden Spoon Restaurant 915 10,980 2.98

4.Puregold 1200 14,400 3.90
5.The Round Table 985 11,820 3.20
6.Savemore 1255 15,060 4.08
7.Dorie’s Catering Services 1680 20,160 5.46
8.Marcess Catering Services 1450 17,400 4.72
9.Longganisa Sorpresa 990 11,880 3.22
10.XO 46 Bistro Filipino 1000 12,000 3.25
11.Jay-J’s Inasal 1250 15,000 4.07
12.Liana’s 985 11,820 3.20
13.Jaynith’s 1150 13,800 3.74
14.Alfa Mart 985 11,820 3.20
15.South Supermarket 1450 17,400 4.72
16.Lilian's Catering 1650 19,800 5.37
 Total 18,835 226,020 61.26
S&S Chicken Hamonado Trading Company 38.74
100.00

Table 33 shows the Future Market Share of S&S Chicken Hamonado

Trading Company as computed is thirty-eight point seventy-four percent

(38.74%)
 35

2.98% 3.17%
2.98%
3.90%
3.2%
4.08%
38.74%

5.46%

4.72%

3.22%
3.25%
4.07%
5.37% 3.20%
4.72% 3.2% 3.74%

1.Food Haven 2.JT’s Manukan Grille 3.Amber Golden Spoon Restaurant

4.Puregold 5.The Round Table 6.Savemore

7.Dorie’s Catering Services 8.Marcess Catering Services 9.Longganisa Sorpresa

10.XO 46 Bistro Filipino 11.Jay-J’s Inasal 12.Liana’s

13.Jaynith’s 14.Alfa Mart 15.South Supermarket

16.Lilian's Catering S&S Chicken Hamonado Trading Company

Figure 4: Pie Chart for Company’s Market Share

Figure 4 shows the Pie Chart allocation of the market share with the

competitors including the S&S Chicken Hamonado Trading Company having the

highest market share of 38.74%. The company has a total of sixteen (16)

competitors both direct and indirect within the selected target markets.
 36

Table 34

Company One Year Projected Sales

Demand Selling Monthly Yearly

Price Sales Sale
(Php) Quantity Quantity
(Php) (Php)
Retail
Sweet 130.00 20 2,600.00 240 31,200
Sweet & Spicy 135.00 18 2,430.00 216 29,160
Total 38 5,030.00 456 60,360
Wholesale
Sweet 370.50 158 58,539.00 1,896 702,468
Sweet & Spicy 384.75 119 45,785.25 1,428 549,423
Total 277 104,324.00 3,324 1,251,891
Total Wholesale and Retail 315 109,354.25 3,780 1,312,251
Actual Demand
Sweet 370.50 25 9,262.50 300 111,150
Sweet & Spicy 384.75 10 3,847.50 120 46,170
Total 35 13,110 420 157,320
Grand Total 350 122,464 4,200 1,469,571

Table 34 shows the S&S Chicken Hamonado Trading Company’s One

Year (2017) Projected Sales. The proponents decided to use only 45% of 701

GAP total is 315.

 37

SWOT Analysis

Table 35

Company SWOT Analysis

Marketing Mix STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

(4P’s)
Product  The product  Short shelf life  Growing  Similar product
has no of the product; market of line;
artificial  The company processed  Change in taste
preservatives; uses private foods; preference of
 The products label.  The curiosity of the customers.
are sell the consumers
directly to the to try the
customers. product.
Price  The price is  The price of  Offers  Intense price
affordable; the product is affordable war;
 The mark-up more price;  Unexpected
is high and expensive  Competitive fluctuation in
the pricing. prices.
compare to
production
cost is low. other
processed
foods;
 The price is
fixed.
Place  The place is  High rental  The place is  Located near
accessible; cost; near the target the competitors;
 Low  Insufficient market;  Other
transportation space to  Expansion to competitors in
cost from the accommodate new location. the location.
supplier’s more
place. customers.
Promotion  The  Limited budget  More  Competitors
promotion is for promotional advertising have better
attractive and activities; untapped promotional
entertaining; markets to strategy;
 Lack of
 The increase sales;  Competitors
promotion is marketing  Growth in gives large
not expertise. number of discounts to
expensive. online users. both retailers
and
wholesalers.

Table 35 shows the study on the Strength, Weaknesses, Threats and

Opportunities of the Company.  This will help the company to thoroughly

 38

understand the business by presenting a viewpoint of the company's operations

from a different angle.

Table 36

Competitors SWOT Analysis

Marketing STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

Mix (4P’s)
Product  The product  New entrant in  Increasing  Health
uses a the business; demand of regulations;
known  Short shelf life company’s  The change
brand; of the product. product; in taste
 High quality  The product preference
of product can be serve of the
and service. to any customers.
occasion.
Price  The price is  The price of the  Offers  Increase of
affordable; competitor is affordable price of the
 The mark- not justifiable to price; product;
up is high the product  Competitive  Unexpected
and the offered; pricing. fluctuation
production  Follow the in prices.
cost is low. traditional
industry
margin.
Place  The  High rental  Strong  Located
company’s cost; emerging near the
business  The place is not market; competitors;
location is accessible.  Expansion to  Intense
near the new location. price war.
target
market;
 Strong
marketing
and
distribution
channel.
Promotion  The  High costs of  Competitors  Competitors
competitors producing and can produce have better
offer higher running ads; promotions promotional
discount;  Lack of aligned with strategy;
 The commercials current  Competitors
promotion is and trends; gives large
attractive advertisements.  Growth in discounts to
and number of both
entertaining. online users. retailers and
wholesalers.
 39

Table 36 shows the Competitors’ Strengths, Weaknesses, Opportunities

and Threats. This provides an advantage to the company and offers insight into

how to set the company and its competitors apart.

Marketing Strategies

Marketing Strategy is essential in reaching the goal of increasing sales

and achieving a sustainable competitive advantage. A good marketing strategy

should be drawn from market research and should focus on the right product mix

in order to achieve the maximum profit potential and sustain the business. The

Proponents came up with the following marketing strategies that would help to

generate high sales through promotions, specifically:

1.Online Marketing – online selling of the company’s product aims to generate

more customer and to introduce the product to people through Facebook, Twitter
and other online networking sites.
2. Personal Selling – Since posting on social media is not always appreciated,
personal selling through interpersonal sales talk will also be used to gain more
profit.
3. Promoting the company with the use of tarpaulin – Tarpaulin will be posted
outside of the Company’s Location in order for potential buyers to be aware of
the existence of the business.
4. The “Word of Mouth” system – The Company will offer the product to the
customers and the customers will also refer the product to other customers. This
will help the company in generating more customers.
 40

Marketing Mix Strategies (4P’s)

Marketing Mix Strategy will help the Proponents define the overall

direction and goals for marketing. The marketing mix is executed through the 4

P's of marketing: Price, Product, Promotion, and Place.

Product

Figure 5: Product Image

Figure 5 shows the actual image of the company’s product, the Sweet

Chicken Hamonado (left side) and Sweet & Spicy Chicken Hamonado (right

side).

The Chicken Hamonado is the chosen product of the Proponents to be

traded. The Chicken Hamonado is a mouth-watering dish composed mainly of

chicken with pineapple chunks, spices, and seasonings. The Chicken Hamonado

is provided with pineapple syrup for the tropical taste, and the crushed garlic
 41

adds a strong taste which still blends well with the sauce and keeps the dish from

being too cloying to the palate. The Chicken Hamonado is unique in the sense

that the main ingredient of the product is chicken and with added secret spices

and seasonings that are appealing to the taste.

Table 37

Nutrient Evaluation of Sweet Chicken Hamonado

Food Item AP EP EP Energ Protei Vit. Vit. Thiami Ribofvn Niaci Calciu Iro
y n A C n . n m n
Juice,pineapple 60 60 100. 37 0.0 0 2 0.04 0.01 0.1 4 0.0
0
Pineapple slice 12 12 100. 143 0.5 0 8 0.14 0.01 0.4 14 0.0
0 0 0
Chicken breast 50 42 84.0 550 90.7 130 0 0.25 0.25 55.9 101 4.2
0 0
Sugar, white, refined 30 30 100. 120 0.0 0 0 0.00 0.00 0.0 0 0.0
0
Salt, course 6 6 100. 8 0.0 0 0 0.00 0.00 0.0 16 0.3
0
Total 858 91.2 130 10 0.43 0.27 56.4 135 4.5

Note: Computed Nutrient value is good for 6 servings. 

Table 37 shows Nutrition Facts of the Sweet Chicken Hamonado variety

that S&S Chicken Hamonado Trading Company offers. Mr. Jose Clemens C.

Francisco, RND of Pasig Health Office-Nutrition Section conducted the nutrient

evaluation.

Table 38

Nutrient Evaluation of Sweet & Spicy Chicken Hamonado

Food Item AP EP EP Energy Protei Vit. Vit. C Thiamin Ribofvn Niacin Calciu Iron
n A . m
Juice,pineapple 60 60 100. 37 0.0 0 2 0.04 0.01 0.1 4 0.0
0
Pineapple slice 120 120 100. 143 0.5 0 8 0.14 0.01 0.4 14 0.0
0
Chicken breast 500 420 84.0 550 90.7 130 0 0.25 0.25 55.9 101 4.2

Sugar, white, 30 30 100. 120 0.0 0 0 0.00 0.00 0.0 0 0.0

refined 0
Salt, course 6 6 100. 8 0.0 0 0 0.00 0.00 0.0 16 0.3
0
Sili, labuyo, 3.03 2.7 89.0 2 0.1 19 2 0.01 0.01 0.1 2 0.1
bunga
Total 860 91.3 149 12 0.44 0.28 56.5 137 4.6

Note: Computed Nutrient value is good for 6 servings. 

 42

Table 38 shows Nutrition Facts for sweet & spicy chicken hamonado

variety that S&S Chicken Hamonado Trading Company offers. Mr. Jose Clemens

C. Francisco, RND of Pasig Health Office-Nutrition Section conducted the

nutrient evaluation.

Price

Penetration Pricing

The Proponents made a decision to use APA Citation as the pricing

strategy of the business. Since, the Chicken Hamonado is new in the market;

Penetration Pricing is the appropriate Pricing Strategy for the product to attract

customers to try a new product. The reason behind this pricing strategy is that

customers will buy and become aware of the Chicken Hamonado due to its lower

price in the marketplace compared to its competitors.

Table 39

Retail and Wholesale Product Cost

Retail
Sweet Sweet
Product Cost Php 95.00/tub Product Cost Php 95.00/tub
Freight In Php 1.00/tub Freight In Php 1.00/tub
Total Product Cost Php 96.00 Total Product Cost Php 96.00
Mark-up Php 34.00/tub Mark-up Php 39.00/tub
Selling Price Php 130.00/tub Selling Price Php 135.00/tub
Wholesale (Bundle/3 tubs)
Product Cost Php 270.00 Product Cost Php 270.00/tub
Freight In Php 3.00 Freight In Php 3.00/tub
Total Product Cost Php 273.00 Total Product Cost Php 273.00
Mark-up Php 97.50 Mark-up Php 111.75/tub
Selling Price Php 370.50 Selling Price Php 384.75/tub

Table 39 shows the breakdown of the Price of the Sweet and Sweet &

Spicy Chicken Hamonado showing the cost per unit (purchase price from the
 43

supplier) which is ninety-five pesos (Php 95.00)/Tub for both Sweet and Sweet &

Spicy for retail while ninety pesos (Php 90.00)/Tub for both Sweet and Sweet &

Spicy for wholesale and the mark up established by the Proponents.

Promotion

The Proponents would make use of the social networking as their website

as their way of promoting publicity for the Company and Product through the use

of the Company’s Website such as Facebook and Instagram. The Company will

also use tarpaulin to inform and attract customers about the existing products.

Figure 6: Company’s Facebook Account

Figure 6 shows the Facebook Page of the Company with a Facebook

website address of https://www.facebook.com/SnSChickenHamonado/. The

page contains information regarding the Company such as; Company Vision and
 44

Mission, Company Location, Contact numbers, official website and how to order.

The Facebook page monitors the viewers and status of the company.

Figure 7: Company’s Instagram Account

Figure 7 shows the Instagram Account of the Company with an Instagram

website address of https://www.instagram.com/snschickenhamonado. The

account also contains information regarding the company such as; the Company

Location, Contact numbers, how to order and the special feature which is using

Instagram to take a quick picture of the company customers and showcasing a

sneak peek into what the experience with the company brand is like.
 45

Table 40

Promotional Activities

June
April

Sept
July
May

Aug

Nov

Dec
Feb

Mar
Jan

Oct
Tarpaulin

Online Selling

Tarpaulin

Flyers

Calling Cards

Company Label

Promotional Schedule

Table 40 shows the Promotional Activities that the business will do

throughout the business operation. The promotional activities will help increase

the customers’ awareness regarding the Chicken Hamonado.

Table 41

Promotional Cost

Promotional Activities Monthly Cost Yearly Cost

Personal Selling No Cost No cost
Online Selling - -
Tarpaulin - 240.00
Flyers 20.00 240.00
Calling Cards 10.00 120.00
Company Label 10.00 120.00
 46

Total Php 720.00

Table 41 shows the allotted budget for the promotional activities that the

business will implement. The cost for activity online selling through internet is

indicate at table 55 Communication Cost at technical aspect.

Place

Distribution channel

The Proponents decided to locate the Business at Block #5 Lot #10 St.

Michael Ville, Sta. Cruz, Pasig City that is accessible for the Proponents.

Vicky’s Homemade S&S Chicken Retail

Pork and Chicken Hamonado Household
Hamonado Trading Employees
Company

Figure 8: Direct Distribution Channel for Retail

Figure 8 shows the Direct Distribution Channel for Retail. The target area

or places where the S&S Chicken Hamonado Trading Company will be

distributed are at the different barangays for retail.

S&S Chicken
Wholesale Customers/
Hamonado
Canteens Retailers
Trading Process Foods Stores
Company

Figure 9: Indirect Distribution Channel for Wholesale

 47

Figure 9 shows of the Indirect Distribution Channel for Wholesale. The

wholesalers will get the supplies from the products of S&S Chicken Hamonado

Trading Company and will be distributed to their customers or to the retailers.

Table 42

Contingency Plan

Problems Encounter Contingency Plans

A. Double the marketing efforts or

A. Lower sales level
strategies of the Proponents.

B. There is a delay in the delivery of the B. Always keep the inventory ready to
products. deliver the products quickly.
C. Implement Company’s policy which is
25% of the product price will be charged
C. The expected orders have been
upon cancellation of the contract only valid
cancelled.
for 2 days before receiving the product. No
refund if more than 2 days.
D. There is complaint from the D. Take note the complaint for the
customer. product/service development.
E. The price of the product will remain,
E. Inflation of the main ingredient of the instead the established mark-up of the
product. proponents will change depends on the
supplier’s selling price.

Table 42 shows the problem encounter that the company might face and

the plan of the company in responding to an emergency or something that might

happen during the business operation.

 48

(Wholesale)
Barangay: (Customers)
Malinao Pasig Mega Market
Santolan Talipapa
Vicky’s S&S Chicken Manggahan Canteen/Eatery
Homemade Hamonado
Pork and Trading
Chicken Company
Hamonado (Proponents) (Retail)
(Supplier) Barangay:
Sta. Cruz (Customers)
Bambang Household
and and
Teletech Call Call Center Agents
Center Company

Figure 10: Supply Chain

Figure 10 shows the flow of the delivery and supply of the product starting

from the supplier up to the chosen target market and distribution center.

Table 43

Supplier Information

Name of Suppliers Complete Address Contact Number

1.Rebecca Saloma 633 Lanzones Ext. (0921) 266-2530
Napico Manggahan,
Pasig City
2.Joel Nucom Blk. 5 Villa Monique St. (0939) 371-2253
Pinagbuhatan, Pasig (0921) 266-2530
City
3.Robin Resultay Blk. 1 Lot 37 Krova, (0917) 110-0027
 49

Barangay Kalawaan,
Pasig City

Table 43 shows the suppliers of the S&S Chicken Hamonado Trading

Company for Chicken Hamonado.