DON HONORIO VENTURA STATE

UNIVERSITY
San Juan, Mexico, Pampanga

CHAPTER 3:
MARKETING
STUDY

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 DON HONORIO VENTURA STATE
UNIVERSITY
San Juan, Mexico, Pampanga

MARKETING STUDY

Marketing research is the foundation of any feasibility study while

profitability is often the focus of a project study, the question of need is the
most fundamental one. Marketing and profitability are interdependent and
have a direct relationship with each other; therefore, an effective marketing
strategy will bring higher profits to the business and vice versa. It is
imperative that the marketing aspect be considered first before conducting
a profitability study. The marketing aspect of research plays a vital role in
getting a company into the market and maintaining its established
competitive position in the market, even improving the existing market as it
operates. Overall, the marketing aspect of the study will determine the
viability of the Savon Heros.

In this chapter the proponents discussed how the proposed business

responds to the market competition by having a good marketing strategy to
take advantage among its competitors. It is also included in this chapter:
the Target Market Description, Demand and Supply Analysis, Competition
Analysis, Survey Analysis, Marketing Plan and Program, Marketing Mix and
Action Plan. To determine the extent to which the goods/ services
generated by the project are needed or demanded and to design the
appropriate marketing strategies and plans that will help ensure that the
project’s outputs will reach and be accepted by the target users. It will also
determine if the proposed study will be competitive in the market. The
primary goal of marketing study is to identify target consumers, understand
their demands, comprehend market trends, and assess the factors that have
a significant impact on buying decisions.

TARGET MARKET DESCRIPTION

A marketer can rarely satisfy customers. Not everyone likes the product
and customers will always look for something new and different. Therefore,
marketers started by dividing up the market into segments which identify
and profile distinct groups of buyers who might prefer or require varying
product and service mixes by examining demographic psycho-graphic,
geographic, technological, and behavioural differences among buyers. Then
the marketer designed which segments present the greatest opportunities,
which are its Target markets. Savon Heros target consumers are: the
students, employees, members of families and residents of Barangay Santo
Rosario, San Patricio and San Pablo, Mexico, Pampanga with the financial
means to purchase our proposed product. These residents were chosen
because they are the most likely customers to visit our target location.

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 DON HONORIO VENTURA STATE
UNIVERSITY
San Juan, Mexico, Pampanga

MARKET RESEARCH

A survey was done through using questionnaires prepared by the

proponents to determine the demand for the product in the chosen market
and location for market research. The proponents used the Slovin’s Formula
to determine the total number of respondents needed for the study.
Random sampling was used by the proponents to get the sample. Random
sampling is a technique in which each sample has an equal chance of being
selected as part of the process. The respondents are chosen randomly
without being biased in representing the total population of 4, 151 for
Barangay Santo Rosario, 4, 784 for Barangay San Patricio and 2, 936 for
Barangay San Pablo, Mexico, Pampanga.

The data for the study was collected via Google forms, according to the
proponents. Addition to that, the proponents obtained permission from the
feasibility study professor and adviser to conduct the survey questionnaires.
The proponents then distribute the survey questionnaires via private
messages. The respondents were given freedom to fill out the
questionnaires the proponents provided.

Slovin’s Formula:
N
n= 2
1+ N e
Where: N = total population
e = margin of error (7%)
n = number of respondent

11 , 871
n= 2
1+ ( 15 , 356 ) (.07)
11 , 871
n=
59.17
n=200.6∨201
SUMMARY OF THE SURVEY

Demographics
Age Group Frequency Percentage
19-22 years old 57 28%
23-26 years old 70 35%
27-30 years old 44 22%
31-35 years old 30 15%
Total 201 100%
Table 6. Demographics Summary

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 DON HONORIO VENTURA STATE
UNIVERSITY
San Juan, Mexico, Pampanga

Figure 3. Age Summary

Table 6 and Figure 3 shows the age of the respondents. It shows that
out of 201 respondents, 70 (35%) of the respondents were in the bracket of
23-26 years old, 57 (28%) of the respondents were in the bracket of 19-22
years old, 44 (22%) of the respondents were in the bracket of 27-30 years
old while the remaining 30 (15%) were in the bracket of 31-35 years old.

Gender Frequency Percentage

Male 64 32%
Female 137 68.%
Total 201* 100%
Table 7. Gender of Respondents

Gender

Male
32% Female

68%

Figure 4. Distribution of Respondents According to Gender

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 DON HONORIO VENTURA STATE
UNIVERSITY
San Juan, Mexico, Pampanga

Table 7 and Figure 4 shows that 68% of respondents (137) were

female, whereas 32% (64) were male.

Survey Results Measuring Attitude of the Potential Markets of

Savon Heros

General Area Mexico, Pampanga Percentage

Area 1 Santo Rosario (64) 32%
Area 2 San Patricio (63) 31%
Area 3 San Pablo (74) 37%
Total 201 100%

Table 8. Summary of Survey Sheet Distribution

Table 8 shows the general area where the survey was conducted and its
affiliated percentage of respondents and their specific location. We chose
three (3) barangay of Mexico, Pampanga. The first column was intended for
the General Areas, which are, area 1, area 2, and area 3, the second
column is for the barangays of Mexico with their number of respondent and
third column for the percentage of each barangay which are Santo Rosario
has 32% (64 respondents), San Patricio which has 31% (63 respondents)
and San Pablo which has 37% (74 respondents) with a total of 201
respondents.

Chart per Survey Question Analysis

In order to collect the requisite information on the market size, the

survey form measure the potential market of Savon Heros.

The survey findings and the associated analysis will be discussed below.
The subsequent information that we proponents will present will be based
on these charts.

Question 1: Do you use soap?

Responses Frequency Percentage
Yes 201 100%
No - -
Total 201* 100%

Table 9. Respondents Who Use Soap

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 DON HONORIO VENTURA STATE
UNIVERSITY
San Juan, Mexico, Pampanga

Yes
No

100%

Figure 5. Distribution of Respondents Who Use Soap

Table 9 and Figure 5 shows that 100% of the respondents are using soap.

Question 2: What type of soap do you use?

Responses Frequency Percentage

Bar Soap 181 90%
Liquid Soap 20 10%
Total 201* 100%

Table 10. Respondents Type of Soap They Use

10%
Bar Soap
Liquid Soap

90%

Figure 6. Distribution of Respondents Type of Soap They Use

Table 10 and Figure 6 shows that 90% of respondents (181) use bar
soap, while the remaining 10% (20) use liquid soap.

Question 3: Have you tried using organic/natural soaps?

Response Frequency Percentage
s

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 DON HONORIO VENTURA STATE
UNIVERSITY
San Juan, Mexico, Pampanga

Yes 200 99.5%

No 1 0.5%
Total 201 100%
Table 11. Respondents Who Have Used Organic/Natural Soap

1%
Yes
No

100%

Figure 7. Distribution of Respondents Who Have Used

Organic/Natural Soap

Table 11 and Figure 7 shows that 99.5% of respondents (200) have

used organic/natural soap while only 0.5% (1) haven’t used it yet.

Question 4: What kind of organic/natural soaps have you tried?

Flavored Soaps Frequency Percentage
Calamansi 59 29%
Papaya 93 46%
Aloe Vera 48 24%
Others 1 0.5%
Total 201 100%
Table 12. Organic/Natural Soaps Tried by Respondents

1%
24% 29% Calamansi
Papaya
Aloe Vera
Others
46%

Figure 8. Distribution of Organic/Natural Soap Tried by

Respondents

Table 12 and Figure 8 shows that 29% of respondents (59) have tried
calamansi flavored soap, 46% (93) have tried papaya flavored soap, 24%

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 DON HONORIO VENTURA STATE
UNIVERSITY
San Juan, Mexico, Pampanga

(48) have tried aloe vera flavored soap and the remaining 0.5% (1) have
tried other flavored soap aside from the mentioned soaps.

Question 5: Responses Frequency Percentage Are you

willing to try Yes 201 100% new flavored
soap such as No - - Coffee Oats,
Lemon and Total 201 100% Tomato?

Table 13. Respondents Willingness to Try New Flavored Soap such

as Coffee Oats, Lemon and Tomato Flavored Soaps

Yes
No

100%

Figure 9. Distribution of Respondents Willingness to Try New

Flavored Soap such as Coffee Oats, Lemon and Tomato Flavored
Soaps

Table 13 and Figure 9 shows that 100% of respondents (201) are willing
to try new flavor organic/natural soap such as coffee oats, lemon, and
tomato.

Question 6: The following are attributes of soaps, please mark

how this attributes matters to you.
Attributes Frequency & Percentage
Considered Very Somewha Neither Somewhat Not At All
by Important t Important Unimportant Important
Respondent Important nor
s Unimportant
Fragrance 150 (75%) 51 (25%) - - -
Colors 72 (36%) 122 (61%) 7 (3%) - -
Brand 121 (60%) 79 (40%) - - -

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 DON HONORIO VENTURA STATE
UNIVERSITY
San Juan, Mexico, Pampanga

Price 128 (64%) 73 (36%) - - -

Packaging 86 (43%) 107 (53%) 8 (4%) - -
Size 117 (58%) 79 (40%) 5 (2%) - -
Benefits 175 (87%) 26 (13%) - - -
Table 14. Attributes Considered Most in Purchasing Soap

Figure 10. Distribution of Respondents According to their

Preferences in Purchasing Soap

Table 14 and Figure 10 shows that 75% of respondents (150) consider soap
fragrance to be very important and 25% (51) consider it to be somewhat
important. 36% of respondents (72) consider soap color to be very
important, 61% (122) consider it to be somewhat important and 3% (7)
consider it to be neither important nor unimportant. 60% of respondents
(121) consider brand of soap to be very important and 40% (79) consider it
to be somewhat important. 64% of respondents (128) consider soap price
to be very important and 36% (73) consider it to be somewhat important.
43% of respondents (86) consider soap packaging to be very important,
53% (107) consider it to be somewhat important and 4% (8) consider it to
be neither important nor unimportant. 58% of respondents (117) consider
size of soap to be very important, 40% (79) consider it to be somewhat
important and 2% (5) consider it to be neither important nor unimportant.
Lastly, 87% of respondents (175) consider soap benefits to be very
important and 13% (26) consider it to be somewhat important. Overall,
respondents place a high value on soap benefits, fragrance and price.

Question 7: Where do you often purchase soap?

Places Frequency Percentage
Grocery Store 38 19%
Online Store 98 49%
Shopping Mall 65 32%

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 DON HONORIO VENTURA STATE
UNIVERSITY
San Juan, Mexico, Pampanga

Total 201 100%

Table 15. Place Where Respondents Purchase Soap

19%
32% Grocery Store
Online Store
Shopping Mall
49%

Figure 11. Distribution of Respondents According to the Place They

Usually Purchase Soap

Table 15 and Figure 11 shows that that 49% of respondents (98)

purchase soap at an online store, 32% (65) purchase form a shopping mall
and the remaining 19% (38) purchase from a grocery store.

Question 8: How much money do you spend on soap?

Price Frequency Percentage

P10.00 – P30.00 6 3%
P31.00 – P50.00 18 9%
P51.00 – P70.00 133 66.2%
P71.00 – P90.00 34 16.9%
More than P90.00 10 5%
Total 201 100%

Table 16. Respondents Spending on Soap

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 DON HONORIO VENTURA STATE
UNIVERSITY
San Juan, Mexico, Pampanga

5%
9%
3% P10.00-P30.00
17% P31.00-P50.00
P51.00-P70.00
P71.00-P90.00
More than P90.00
66%

Figure 12. Distribution of Respondents Spending on Soap

Table 16 and Figure 12 shows that 66% of respondents (133) spend 51-
70php on soap, 17% (34) spend 71-90php, 9% (18) spend 31-50php, 5%
(10) spend more than 90php and the remaining 3% (6) spend 10-30php on
soap.

Question 9: How often do you purchase soap in a month?

Number of Times Frequency Percentage
Daily 12 6%
Once a week 47 23%
2-3 times a week 72 36%
Once a month 70 35%
Total 201 100%
Table 17. Number of Times Respondents Purchase Soap

6%
Daily
35% 23% Once a week
2-3 times a week
Once a month

36%

Figure 13. Distribution of Respondents Number of Times Purchase

Soap

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 DON HONORIO VENTURA STATE
UNIVERSITY
San Juan, Mexico, Pampanga

Table 17 and Figure 13 shows that 36% of respondents (72) purchase

soap 2-3 times a week, 35% (70) purchase it once a month, 23% (47)
purchase it once a week and 6% (12) purchase it daily.

Question 10: How do you hear about new soap brands?

Ways Frequency Percentage
Friends 32 15.9%
Social Media (Instagram, 81 40.3%
Facebook)
Television (Commercial, 65 32.3%
News)
Online (Blogs, Articles) 23 11.4%
Total 201 100%
Table 18. Respondents Ways of Learning New Brand Soaps

15.9%
11.4% Friends
Social Media
32.3% Television
Online
40.3%

Figure 14. Distribution of Respondents Ways of Learning New

Brand Soaps

Table 18 and Figure 14 shows that 40.3% of respondents (81) learn

about new soap brands through social media, 32.3% (65) through
television, 15.9% (32) through friends and 11.4% (23) through online such
as blogs and articles.

DEMAND ANALYSIS

Demand analysis is a method of determining the consumers demand for

a product or service in a target market. It is important to understand the
demand for our products in order to respond to our customers' needs and
wants. It will be our basis if our chosen study was feasible. After extensively

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 DON HONORIO VENTURA STATE
UNIVERSITY
San Juan, Mexico, Pampanga

analyzing the demand, we can now forecast the entire number of quantities
we will produce daily, weekly, monthly, and annually. The data representing
the historical demand for natural handmade soap will be calculated using
the population from 2018 to 2022. The datas will be divided by the average
household size in Barangay Santo Rosario, San Patricio and San Pablo to
determine the total number of households.
Year Santo Rosario San Patricio San Pablo
2018 3, 839 4, 424 2, 715
2019 3, 915 4, 512 2, 769
2020 3, 992 4, 600 2, 823
2021 4, 070 4, 691 2, 879
2022 4, 151 4, 784 2, 936
Total 19, 967 23, 011 14, 122
Table 19. Historical Population of Barangay Santo Rosario, San
Patricio and San Pablo
Source: Municipality of Mexico, Pampanga

Computation of Consumption
Data Frequency Total
Time Period XY
Gathered (f) (x) Quantity (y)
Daily 12 360 12 4, 320
Once a week 47 52 47 2, 444
2-3 imes a week 72 156 72 11, 232
Once a month 70 12 70 840
∑ (fx))
Total ( 201 580 201 18, 836
Table 20. Computation of Consumption

Note: Assumption of 360 days per year (excluding 5 holidays)

There are 52 weeks in a year
Let: f = total number of frequencies obtained in the conducted survey
x = number of times (expected) the product is consumed in a year

Demand Computation on Sample

Demand Computation on
Sample
x= ∑ (fx) /n
x = 18, 836/201
x = 94
Table 21. Demand Computation
Table 20 and 21 shows the frequency of consumer’s purchases in a year
which resulted to 94.

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 DON HONORIO VENTURA STATE
UNIVERSITY
San Juan, Mexico, Pampanga

Projected Population
Year Santo Rosario San Patricio San Pablo
2023 4, 275 4, 939 3, 013
2024 4, 402 5, 099 3, 092
2025 4, 533 5, 264 3, 173
2026 4, 668 5, 434 3, 256
2027 4, 807 5, 610 3, 341
Total 22, 685 26, 346 15, 875
Table 22. Projected Population Barangay Santo Rosario, San
Patricio and San Pablo
Source: Philatlas; Santo Rosario Growth Rate = 2.98%; San Patricio Growth Rate
= 3.23% and San Pablo Growth Rate = 2.61%

Tables 19 and 20 show the historical and projected population of

Barangay Santo Rosario, San Patricio and San Pablo. To calculate the
projected population of each barangay, multiply the previous population by
the growth rate, then add the result to the previous population to get the
projected population for the following year.

People who used organic/natural soap 99.5%

Willing to try new flavored soap (Coffee oats, 100%
Lemon and Tomato)
Target Market Percentage 99.75%

Table 23.Target Market Percentage

Based on the survey results conducted by the proponents, the target

market percentage of Savon Heros is 99.75%. The 99.5% of respondents
are people who used organic/natural soap. 100% of respondents are the
one who are willing to try new flavored soap such as coffee oats, lemon and
tomato. These percentage gathered are added and divided by 2 to get the
percentage of person who are willing to purchase the proposed study. The
demand percentage is used to compute for the target demand population of
Savon Heros.

Computation of Historical Demand

Total
Target
Population Target Annual
Year Market Frequency
of 3 Market Demand
Percentage
Barangay
2018 10, 978 99.75% 10, 951 94 1, 029, 394
2019 11, 196 99.75% 11, 168 94 1, 049, 792

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 DON HONORIO VENTURA STATE
UNIVERSITY
San Juan, Mexico, Pampanga

2020 11, 415 99.75% 11, 386 94 1, 070, 284

2021 11, 640 99.75% 11, 611 94 1, 091, 434
2022 11, 871 99.75% 11, 841 94 1, 113, 054
Table 24. Computation of Historical Demand

Table 24 shows the computation of historical demand. By multiplying

total population to total market percentage, you’ll get the target market
each year. Multiplying target market to frequency, you’ll get the annual
demand each year of Savon Heros.

Methods of Projection.

In computing the projected demand, the proponents decided to use the

Arithmetic Straight Line Method.

Arithmetic Straight Line Method

Demand for the last year (2022) 1, 113, 054
Less: Demand for the first year 1, 029, 394
(2018)
Total Demand 83, 660
Divided by: 5 years-1 4
Increase per Year 20, 915
Table 25. Increase per Year

Year Previous Annual Projected

Year Increase Demand
Demand
2023 1, 113, 054 20, 915 1, 133, 969
2024 1, 133, 969 20, 915 1, 154, 884
2025 1, 154, 884 20, 915 1, 175, 799
2026 1, 175, 799 20, 915 1, 196, 714
2027 1, 196, 714 20, 915 1, 217, 629

Table 26. Projected Demand

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 DON HONORIO VENTURA STATE
UNIVERSITY
San Juan, Mexico, Pampanga

Table 26 shows the projected demand from year 2023-2027. By adding

the previous year demand to annual increase, you’ll get the projected
demand every year.

SUPPLY ANALYSIS
Annual Supply of Existing Competitors
Existing
2018 2019 2020 2021 2022
Competitors
Sinizen 50, 000 60, 000 50, 000 40, 000 50, 000
Professionals 45, 000 55, 000 63, 000 70, 000 75, 000
Skin Care
Total 95, 000 115, 000 113, 000 110, 000 125, 000
Table 27. Annual Supply of Existing Competitors
Table 27 shows the information about the annual supply of existing
competitors that was obtained by interviewing clerks of the shop from face-
to-face. The supply serves as the total supply provided by the existing soap
stores. Their annual supply will be used to complete the historical and
projected supply of Savon Heros store in Santo Rosario, San Patricio and
San Pablo.
The historical supply shows the supply provided by the competitors for
the last five years.
Projected Supply
The Arithmetic Straight Line Method was used in computing the
projected supply to be consistent with the method used in computing
demand.

Arithmetic Straight Line Method

Supply for the last year (2022) 125, 000
Less: Supply for the first year 95, 000
(2018)
Total Supply 30, 000
Divided by: 5 years-1 4
Increase per Year 7, 500
Table 28. Increase per Year

Projected Supply
Previous Year Annual Projected
Year
Supply Increase Supply

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 DON HONORIO VENTURA STATE
UNIVERSITY
San Juan, Mexico, Pampanga

2023 134, 726 6, 182 140, 908

2024 140, 908 6, 182 147, 090
2025 147, 090 6, 182 153, 272
2026 153, 272 6, 182 159, 454
2027 159, 454 6, 182 165, 636
Table 29. Projected Supply of the Competitors

Table 29 shows the projected supply of the competitors from the year
2023 up to 2027. We computed the projected supply by adding the previous
year supply to the annual increase.

Year Annual Capacity

2023 140, 556
2024 146, 722
2025 152, 889
2026 159, 055
2027 165, 222
Table 30. Annual Capacity of Savon Heros
Table 30 shows the annual capacity of Savon Heros which was gathered by
the proponents based on the projected supply of the competitors and the
demand of the business which is 99.75%.

Demand-Supply Gap Analysis

Table 31. Demand-Supply Gap Analysis

Percentage of
Demand Supply Gap (C)
Year Unsatisfied
(A) (B) (A-B)
Demand (C/A)
2023 235, 678 140, 556 95, 122 40%
2024 240, 038 146, 722 93, 316 39%
2025 244, 398 152, 889 91, 509 37%
2026 248, 758 159, 055 89, 703 36%
2027 253, 118 165, 222 87, 896 35%

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 DON HONORIO VENTURA STATE
UNIVERSITY
San Juan, Mexico, Pampanga

Table 31 shows the demand-supply gap analysis of Savon Heros. To get

the gap, subtract the demand to the supply. By dividing the gap to the
demand, you’ll get the percentage of unsatisfied demand.

MARKETING MIX STRATEGIES

Product
The proposed product of Savon Heros offers variant of natural flavors of
soap and these are Coffee Oats, Lemon and Tomato Flavored Soap which
will give highlights to a natural and organic ingredients. These soaps are
handmade and at the same time promote eco-friendly products. Savon
Heros are also mini-sizes in shapes which makes it unique from others
because you can bring it anytime especially when you’re in rush.

Price

Savon Heros price will be ranging in between P51.00-P70.00 per box of

soaps. Since it is new in industry, we offer affordable prices to encourage
consumers to try it. The box consists of 12 pieces of mini-sizes soaps with
different shapes and you can buy an assorted flavors of your own choice.

Place

Savon Heros will be situated at Spillway, Santo Rosario, Mexico,

Pampanga. It was a 300sqm single-story building which is divided into three
rooms that will be included in the next chapter. In terms of interior design,
we’ll based it according to the trends nowadays.

Promotion

Through the conducted survey we learned that social media platform is

one of the ways how consumers learned about new brand soaps. Savon
Heros will employ online promotional strategy to advertise and expose our
products by means of social media like Facebook, Instagram, Twitter and
they may also reach us through our official website. To make it easy to
interact and communicate, they may also visit our shop. This platform will
cater our potential consumers that are outside of store’s location. We’ll also
offer discounts and holidays promotion to attract and increase consumers.

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