Senior High School

ENTREPRENEURSHIP
Quarter 1 – MELC 1
Learning Activity Sheet 2
Recognize a Potential Market

REGION VI – WESTERN VISAYAS

Entrepreneurship
Activity Sheet No. 2
First Edition, 2021

Published in the Philippines

By the Department of Education
Region 6 – Western Visayas

Republic Act 8293, section 176 states that: No copyright shall subsist in any work
of the Government of the Philippines. However, prior approval of the government agency or
office wherein the work is created shall be necessary for the exploitation of such work for a
profit. Such agency or office may, among other things, impose as a condition the payment
of royalties.

This Learning Activity Sheet is developed by DepEd Region 6 – Western Visayas.

ALL RIGHTS RESERVED. No part of this learning resource may be reproduced or

transmitted in any form or by any means electronic or mechanical without written permission from the
DepEd Regional Office 6 – Western Visayas.

Development Team of Entrepreneurship Activity Sheet

Writer: Chayin D. Gonzaga

Illustrators: Anthony M. Cordilla
Editors: Vincent J. Castro
Roslyn Q. Maceda
Lorgin G. Nuniala
Sol Grace O. Timola
Layout Artist: Annamor M. Eleccion, Llaine Grace B. Coronel
Jose Karrlo G. Barro
Schools Division Quality Assurance Team:
Edna T. Arbon
Kristian Jay L. Nanta
Georgie T. Jusos
Julie Ann G. Vegilio
Division of Sipalay City Management Team:
Renato T. Ballesteros
Ma. Teresa P. Geroso
Ronie T. Tababa
Annamor M. Eleccion
Sol Grace O. Timola
Regional Management Team:
Ramir B. Uytico
Pedro T. Escobarte Jr
Elena P. Gonzaga
Donald T. Genine
April C. Velez

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Introductory Message

Welcome to Entrepreneurship!

The Learning Activity Sheet is a product of the collaborative efforts of

the Schools Division of Sipalay and DepEd Regional Office VI - Western
Visayas through the Curriculum and Learning Management Division (CLMD).
This is developed to guide the learning facilitators (teachers, parents and
responsible adults) in helping the learners meet the standards set by the K to
12 Basic Education Curriculum.

The Learning Activity Sheet is self-directed instructional material

aimed to guide the learners in accomplishing activities at their own pace and
time using the contextualized resources in the community. This will also assist
the learners in acquiring lifelong learning skills, knowledge and attitudes for
productivity and employment.

For learning facilitator:

The Entrepreneurship Activity Sheet will help you facilitate the

teaching-learning activities specified in each Most Essential Learning
Competency (MELC) with minimal or no face-to-face encounter between you
and the learner. This will be made available to the learners with
references/links to ease the independent learning.

For the learner:

The Entrepreneurship Activity Sheet is developed to help you

continue learning even if you are not in school. This learning material provides
you with meaningful and engaging activities for independent learning. Being an
active learner, carefully read and understand the instructions then perform the
activities and answer the assessments. This will be returned to your facilitator
on the agreed schedule.

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 Quarter 1- Week 3-5

Learning Activity Sheet (LAS) 2

Name of Learner: _____________________________________________________

Grade and Section: ______________________________ Date: ________________

ENTREPRENEURSHIP ACTIVITY SHEET

Recognize a Potential Market

I. Learning Competency with Code

Recognize a Potential Market
● Analyze the market need.
● Determine the possible product(s) or service(s) that will meet the need.
● Screen the proposed solution(s) based on viability, profitability & customer
requirements.
Week 3-6 (TLE_ICTAN11/12EM-Ia-2)

II. Background Information for Learners

When you become an entrepreneur, several factors should be given closer

focus to run your business smoothly and productive. In running a business, it is a
task in which you as an entrepreneur, should be able to develop strong self-
confidence and consider yourself as a risk-taker. There are times that the supply
and demand are imbalanced. The perfect example of disparity is currently that the
world is experiencing a pandemic due to COVID-19. Supplies are not enough
accordingly resulting in a price increase which affects tremendously the life status
of every Filipino. In the meantime, as the world is fighting the invisible virus, all the
business activities are put in a critical situation that may cause an economic
downturn or bankruptcy in the future. One of the most important things to consider
when engaging in business nowadays is market analysis. Market Analysis is the
process of gathering evidence about a market within an industry. This analysis
studies the forces at work of a market and what makes potential customers tick.
Keep in mind that the risks associated with growing opportunities increase as you
move away from the products and markets you know into products and markets
that are new to you. Costs for research and development of new products and
researching and penetrating new markets will also increase.

Customer or Market Needs

Businesses should start by knowing the consumers’ interests, desires, and needs.

It’s easier to sell what consumers want and need than try to sell something they don’t
see the benefit in buying. In a fast-moving world, it should be a competitive edge having
the chance of monitoring the market, detecting what can be a source of a profitable new
business.

There are 5 elements to determine the market potential.

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1) Market Size

The first and most important factor to consider while determining market potential is
the market size of your product. Market size is the total market sales potential of all
companies put together. You need to know how big your potential market is. This is the
group of people who are likely to buy your product or service. Unless you are in a very
specific niche, you want to find a large group of buyers. For example, if you want to sell a
new weight-loss program, you may have a large market of 50,000 people in your area that
are between the ages of 25 and 65 who are trying to lose weight.

Customer needs analysis is the process of identifying what motivates a customer to buy
products or services. Knowing which features, attributes, and benefits are relevant
to customers can help businesses adapt their product development and marketing
strategies.

2) Market growth rate

When you study market growth, you have to forecast based on the differences
between product line extensions and a completely new concept in the
Market. Samsung has the Samsung galaxy series which is a pioneer series in Samsung.
Naturally, whenever a new product line extension of the Samsung Galaxy is launched, it
will sell in the market. But will a new product line sell at the same pace? So, the market
growth rate is subjective, and it depends on the type of product you are going to launch.

Another example is the PC market. The PC market as compared to the laptop

market, or the smartphone market is declining. That’s why if you are a company which
makes PC’s, then you have to be aware that you are entering a declining market. Instead, if
you have the potential, why not enter the laptop market or the Smartphone market.

Market growth rate can be determined by checking the facts and figures of the last 5
years of the industry that you are in. Many top websites will give you such data. Even

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newspapers do a frequent analysis of which are the industries that are growing and at what
percentage. Today, if you were to enter the E-commerce industry, it will be a wise choice
because the industry is growing by leaps and bounds. However, 10 years down the line, a
new technology might be invented, which makes E-commerce buying obsolete.

3) Profitability

Going back to the E-commerce example, many small businesses have mixed
feedback for E-commerce businesses. Some say that the market is huge and there is a lot of
potentials. But others say that they have suffered huge losses because of the amount of
packaging and the transport costs involved in shipping across the country. These are both
perspectives and both are correct.

Determining and forecasting your profitability is important to understand the market

potential. If the business is going to give low profitability, then the volumes need to be high
(e.g. – FMCG products) or if the business is going to give low volumes, then the
profit needs to be higher (e..g – industrial goods).

Calculation of profitability to determine Market potential can use three main elements

● ROI – Return on investment

● ROS – Return on sales
● RONA – Return on net assets
● ROCE – Return on capital employed

You can use any of the calculations mentioned above to calculate the likelihood of
profitability and to determine how profitable the industry or product is going to be.

4) Competition

You need to know and understand the competition in an industry to determine the
market potential for the product you are going to launch. If the industry has high competition,
the entry barriers are going to be high and at the same time, establishing yourself will require
deep pockets. You might have to lower the price of your products even though you are giving
higher value. This requires that you have enough money to take hits till the time competition
leaves the market.

Today, small retailers are suffering under the brunt of large multi-national sellers.
However, this does not mean small businesses have stopped establishing themselves. They
are using different strategies to attract customers to their businesses. One such strategy is
good customer service, which is missing in large corporations.

When competition is low, market awareness will be low as well. An example can be
taken of industrial refrigeration products, where the competition is low, but the product
knowledge is low as well. So, your competitor is equally likely to influence the potential buyer
as you are. Differentiation will be minimal because there is no need of investing in

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differentiation. In such a market, the companies which differentiate, literally dominate the
market they are in.

Determining market potential requires you to understand the market standing

of various competitors and it also requires that you have the necessary plans up your
sleeves to understand how to tackle these competitors when the time comes.

5) Product and consumer type

Is your product a repeat buying product or one-time sale only? Example, soap and
shampoo is a repeat buying product. But once you buy a refrigerator, you will need another
for the next 10 years. So, in your whole lifetime, you will buy 8-10 refrigerators at the
maximum. But in a year, you are likely to buy 40-50 soaps individually. That is 300-400
soaps per individual in their livelihood. Multiply that by a billion and you can understand the
market potential of the soap industry.

Example of Determining Market Potential

I want to launch a Vegetarian Cuisine restaurant in my locality. So, I determine the

market potential as follows:

1. Market size – I have 2 Mongolian families living in my locality. They are of

different demography. But with some market research, I find out that many of them
are young adults.

2. Market growth – As my region has even more apartments and buildings coming up,
the market is going to grow instead of decrease.

3. Profitability – I have an idea of the prices being kept by competitors, and at those
prices, I will earn a good margin

4. Competition – Strong competition from a local semi-veggie restaurant. But I believe

my cooking skills and experience are better than him when it comes to serving
Vegetarian foods.

5. Customer type – It is going to be a repeat business because customers who like to

eat healthily & my food are more likely to come again and again. Each customer will
be important because I am in the food industry, and a single mistake can lose me a
lot of customers as well as my reputation.

Therefore, with the above analysis, I can safely say that I am better off with the
launch of the restaurant and that the market potential exists. Similarly, you can perform a
statistical analysis of your product or service which you are going to launch and decide with
regards to the launch of the product.

Opportunity is a situation or an occasion that makes it possible to do something that

you want to do. It is an available set of circumstances with uncertain outcomes requiring an
obligation or resources and involving exposure to risks. 

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 1. OPPORTUNITY SEEKING 
• Entrepreneurs are innovative opportunity seekers. They have a never-ending curiosity to
discover new or diverse ideas and see whether these ideas will work in
the marketplace. 

• Entrepreneurs create value by presenting new products or services or discovering a better

way of creating them.

• These may include innovation in terms of product designs or the addition of new product
features to present ones.

•They may also interfere in improving their operational skill by employing new technologies
that will bring them greater efficiency and better economics

2. OPPORTUNITY SCREENING 
• Opportunity Screening is the process of carefully selecting the best opportunity. It is the
most difficult and yet, most important part of opportunity-driven entrepreneurship. It takes a
lot of time, effort, and facts to discern which among the potential opportunities uncovered
would be the one worth investing in or at least narrowing down the list to the few promising
ones. 

III. Accompanying DepEd Textbook & Educational Sites

Ewing Marion Kauffman Foundation. 2020. Determine Market Potential. June 4.

Accessed February 11, 2021.
https://www.entrepreneurship.org/artiles/2006/09/determine-market-potential.

Habaradas, R.B. & Tullao, T.S. 2017. Entrepreneurship. Quezon: Phoenix

Publishing House, Inc.

Hitesh Bhasin. 2018. "How to determine Market potential for any product or
service?" https://www.marketing91.com/determine-market-potential/.
September 8. Accessed February 11, 2021.

Leonard, Kimberlee. 2019. Market Needs in a Marketing Plan. March 8. Accessed

February 8, 2021. https://smallbusiness.chron.com/examples-market-needs-
marketing-plan-12307.html.

Link: en.wikipedia.org/encyclopedia/market-research www.patriotsoftware.com

https://www.igi-global.com/dictionary/market-needs/63383

Gonzaga, Chayin D., GMNHS – Main, Division of Sipalay City

Created the word puzzle in Activity 1, Activity 2 questions
IV. ACTIVITY

Activity 1. Word Search:

Search different words related to Entrepreneurship from the set of word puzzles

below (15 points)

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T B D A C O M M O D I T I E S P
E C T N U F G A P E H A B J I E
C A E A S L I N P M E K U H N L
H M K L T N Q P O A Q T S U C R
N I R Y O H S O R N W R I V O I
O P A S M A T W T D U X N F M S
L R M I E N I E U E B Y E I E K
O O L S R X F R N D C M S N Z T
G D A B S E O E I F G A S A X A
Y U I C F T R N T S H R M N Q K
A C T E A P P T Y U I K A C M E
X T N P E N T R E P R E N E U R
Z S E R V I C E S P J T A L O P
J A T I J L O Q R L A T I P A C
Y N O C K M U S E Y X Q K A T R
E X P E D I S T R I B U T I O N

Activity 2. Getting to know the market.

Answer the following questions. Write your answers in the space provided after
each question. 

1. Who are my potential market or customers?  

__________________________________________________________________________
__________________________________________________________________

2. What are my customers’ spending and buying habits?  

__________________________________________________________________________
__________________________________________________________________

3. How large is my target market?  

__________________________________________________________________________
__________________________________________________________________

4. How much are potential customers willing to spend?  

__________________________________________________________________________
____________________________________________________________________ 

5. Who are my competitors?  

__________________________________________________________________________
__________________________________________________________________

6. What are my competitors’ strengths and weaknesses?  

__________________________________________________________________________
____________________________________________________________________ 

Activity 3 Product List.

List down at least 5 products and services offered in your marketplace

based on its importance to the community. Write your answer in the table provided
below (1 as the most important and 5 as the least important) 

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 Products Services 
1. 1. 
2. 2. 
3. 3. 
4. 4. 
5. 5. 
Opportunity source  Findings  Potential product
or service

Demographics  The number of Cellphone/Load  

college students at business
Barangay Gil Montilla
is increasing

1. Socio-cultural factor

2. Technological factor

3. Economic factor

4. Environmental or
ecological factor

5. Political Factor

6. Demographic factor

Activity 4: Opportunity Spotting and Assessment.

Do an opportunity spotting and assessment activity in your locality or barangay.
Identify the potential opportunities from the given opportunity source. If there is no
opportunity in a particular source, indicate none. You may also repeat other opportunity
sources.  Follow the given example.

Activity 5. Analyzing the Market Need 

To prevent the COVID 19 from spreading in the Philippines, airports, seaports, and
other point of entries all over the country have been provided with the necessary equipment
to identify the people coming from other places outside & within the country carrying the
virus.  However, there is no guarantee yet that the spreading of the virus can now be
controlled unless the people will follow the guidelines prescribed by the Department of Health
and Inter-Agency Task Force (IATF). What do you think are the possible
opportunities offered by this threatening situation? 
Compose a rap song or create a music video describing the possible products or
services you wish to offer to the community. Identify its advantages in selecting your products
or services, the customer requirements, and the market segment who will be using your
products or who will avail of your services. Timeframe of the presentation is a 3 to 4-
minute presentation. 

Rubrics for Scoring 

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 Group Name: _______________________________ 

Direction: Students in assigned teams are to create the task that details the specific tasks for
this activity. The presentation may either be video, jingle-making depicting the possible
products or services.  

Criteria Exemplary Proficient Partially  Unsatisfactory

Proficient Points
Introductio (12-15) (8-11) (4-7)  (0-3)
n The introduction  The introduction The introductio The introduction 
(10 points) must be convincing must be clear n does does not orient the
and must provide
and  not create audience to what
motivating content
comprehensible a strong will follow. 
that catches which evokes  sense of what
the spectator/reader interest in the is to follow 
from the start of the  topic 
presentation and
keeps the audience’s 
attention.
Concept  (15-20) (10-14) (5-9) (0-4)
(20 points)  Has a clear picture Has a clear Has Little effort has
of what they picture of what brainstormed been spent on
are trying they are trying to their concept brainstorming &
to achieve.   achieve. Can but has a clear refining a concept.
Adequate   describe what focus has Unclear on the
description they are trying to emerged. goals & how the
of what they do overall but Goals or final activity will be met.
are trying to do   has trouble product not
describing how clearly defined.
their work will
contribute to the
final output
Content / (15-20) (10-14) (5-9) (0-4)
Organizati The content Information The content The content lacks
on (20 exceeds the presented does not information being
points) expected clear supports what present clear asked in the
statement on what is being sked in stated activity.
is being asked in the activity. The information. Information is
the activity. content is Some of the incorrect,
Information is presented in a supporting outdated, or
presented logically. progression of information incomplete.
ideas & does not seem
supporting to fit in the
information. activity & not
connected in
series.

Total Points/50 

V. REFLECTION

1. I learned that
______________________________________________________________________

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 ______________________________________________________________________
_________________________

2. I enjoyed most on
______________________________________________________________________
______________________________________________________________________
_________________________

3. I want to learn more

____________________________________________________________________
________________________________________________________________________
____________________________

VI. ANSWER KEY 

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