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Republic of the Philippines

CEBU TECHNOLOGICAL UNIVERSITY


MAIN CAMPUS
M. J. Cuenco Avenue Cor. R. Palma Street, Cebu City, Philippines
Website: http://www.ctu.edu.ph E-mail: thepresident@ctu.edu.ph
Phone: +6332 402 4060 loc. 1137

OFFICE OF THE UNIVERSITY PRESIDENT

BUSINESS PLAN

ESTABLISHING SANITECT

In Partial Fulfillment of the Requirements for the Course

The Entrepreneurial Mind

Submitted by

Malabago, Sherry Ann


Tigley, Celin
Panase, Winslett Therese
Tapic, Archaela Kathleen
Riconalla, Dec
Nucos, Dhenver

Submitted to

Teacher

October 12, 2022

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APPROVAL SHEET

This thesis, entitled “ASSESSMENT OF THE MARKETABILITY OF SANIBOOTH BY


SANITECT BASED ON THE BUYING PREFERENCE OF THE
CONSUMERS”, prepared and submitted by MALABAGO, SHERRY ANN,
TIGLEY, CELIN, PANASE, WINSLETT THERESE, TAPIC, ARCHAELA
KATHLEEN, RICONALLA, DEC and NUCOS, DHENVER.

ACKNOWLEDGEMENTS

We would like to express our sincerest gratitude to God, for giving us the wisdom,
strength, support and knowledge in exploring things, and for the guidance in helping us we
surpass all the trials we have encountered.

This paper and the research behind it would not have been possible without the
exceptional support of our Class Instructor Ms. Janice Libradilla, Her support and effort in
helping the researchers conduct a good research have been a motivation for them to strive
in pursuit of knowledge.

We extend our gratitude to this study’s panelists for their constructive guidance with
our approach to this research.

We would like to thank our respondents for their time, support and answers for they
have given a great role in the completion of our marketing research.

Nobody has been more important to us in the pursuit of this project than the members
of our families. We would like to thank our parents whose love and guidance are with us in
whatever we pursue. They are the ultimate role models.

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ABSTRACT

The current COVID-19 pandemic posed a threat to traditional shopping


routine due to sanitary constraints. Most malls and establishments are imposing
sanitary precautions that usually take a time to finish. With this, the sanitation
company, SaniTect, devised an automatic walk-in sanitation booth called
“SaniBooth'' to allow establishments to have easy flowing entry of customers. In
this paper, we assess the marketability of SaniBooth by SaniTect through
analyzing the target market’s preferences with consideration to their
demographics. The study utilizes a quantitative method using the descriptive
approach. Online survey questionnaires were used to gather data. In the final
analysis, the results indicate that p-values of the product features are higher than
the significance levels which led to the rejection of the alternative hypothesis and
the acceptance of the null hypothesis. A price range of Php 50,000 to Php 70,000
reflects higher frequency. Moreover, physical stores are more preferred over
online stores. Lastly, the customers of sanitation products favor social media the
most for promotions. To expound, the researchers concluded that all
demographic, product feature, affordability, placement, and promotion variables
affect the buying preferences of SaniTect’s target market.

Keywords: buying preference, marketability, sanitation industry.

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Table of Contents
Title Page…………………………………………………………………………………….....1
Approval Sheet………………………………………………………………………………....2
Acknowledgments……………………………………………………………………………...3
Abstract………………………………………………………………………………………….4
Table of Contents………………………………………………………………………………5

I. EXECUTIVE SUMMARY……………………………………………………..….7

II. BUSINESS DESCRIPTION…………………………………………………..….9


a. The Business Concept and Model…………………………………….…....9
b. Company Statements……………………………………………..……..….14

III. MARKETING PLAN……………………………………………………..……19-76


a. Strategic Marketing…………………………………………………..……...19
i. Research……………………………………………………….. …...19
1. Introduction……………………………………………….…19
2. Review of Related Literature…………………………........26
3. Research Methodology……………………………….........43
4. Presentation, Analysis and Interpretation of Data….........46
5. Summary of Findings, Conclusions
And Recommendations……………………………………..65
ii. Macro Environment Analysis…………………………………….….75
1. Political, Economic, Social, Technological Analysis.
……..76
iii. Industry Analysis …………………………………………………77-90
1. Demand-Supply Analysis…………………………………..
2. Competitive Analysis……………………………………..…
iv. STP…………………………………………………………….…91-98
1. Segmentation…………………………………….……….…
2. Targeting…………………………………………….......…
3. Positioning………………………………………….……....
b. Tactical Marketing………………………………………………………......99
i. Product………………………………………………………...……
ii. Pricing……………………………………………………………… .
iii. Distribution…………………………………………………………..

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EXECUTIVE SUMMARY

SaniTech was an idea created into reality by the business owner, having
in mind the customer's and the community's safety and protection against Covid-
19. The product allows customers in establishments to walk around without
worrying too much about being in contact with virus-carriers. With this, the word
"sanitation" plays a vital role in showcasing the product which can also be
observed as a wordplay in the product itself: SaniBooth.

SaniTect's main office is strategically located in Cebu Business Park


which is accessible to nearby recreational, leisure and business facilities. Its
plant site is located in Pasabungan, Mandaue City. It is also strategically chosen
to be placed in Mandaue as it can blend into some of the largest consumer plants
as well. It is also 10 mins away from Metro Cebu, making it efficient for
transactions.

SaniTect is considered a highly-relevant product in the recent pandemic.


Having this product would significantly reduce physical contact in store and mall
entrances. SaniTect makes sure that everyone can still walk around freely with
less worry in business and leisure buildings.

The marketing plan is composed of a marketing research conducted to


assess the marketability of the product based on the target market’s preference,
macro environment analysis, industry analysis, segmentation, targeting,
positioning, and the tactical marketing that is comprised of product, pricing,
distribution, and promotions strategies. The research conducted shows
significant data that is used to determine the marketability of the product in Cebu
City. Political, economic, social, and technological opportunities and threats are
also determined. Opportunities include political stability, economic growth,
increased attention to health concerning virus transmission, innovation. Threats
include consumer protection, inflation, lower population can use the product due
to pandemic, and competitors’ advancement in technology.

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In the industry analysis, SaniTect evaluated the market and found out the
determinants that shift both the supply and demand curve. The supply
determinants are (1) the costs of production, (2) prices of other related products,
(3) the number of sellers, (4) technology, and (5) external conditions. While the
demand determinants are (1) consumer’s income, (2) prices of related goods
(substitutes), (3) buyers’ preferences, (4) the number of buyers, and (5) external
conditions. Competitors in the industry are also determined. The national
competitors are Usher Technologies and sellers in Facebook Marketplace.
International competitors are Smart Chip Tree and Zenomeink Corporate
Solutions.

In summary of the technical study, this segment shows the plant location,
capacity, facilities, layout, production, service process, schedule, physical
resources, inventory, raw materials. sources of materials, utilities, sources of
utilities, waste disposal, waste description, and waste disposal method. The
purpose is to convey the capabilities in terms of technical expertise are the main
focus. This evaluation takes the outline of the system or project requirements into
consideration. Technical study is an excellent opportunity for long-term planning
and also a vital troubleshooting device for management. The study serves as a
flow chart to understand these workflows.

The business is sole proprietorship. It utilizes functional


departmentalization to cater its different activities. SaniTect’s different
departments are Administrative Department, Operations and Production
Department, Human Resource Department, Finance Department, and Marketing
and Sales Department. The departments are under Mr. Malakhai Jeu Cunanan,
the owner of SaniTect. Financial study, socio-economic study, and the
company’s corporate social responsibility plan are included in this paper.

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In the financial aspect of the study, the report is shown the business’
source of income which is funded by the owner, himself. Budgeting is added to
the study that includes estimated production, cost, sales and profit. After all the
estimated budget of the business is given, a projected income statement,
balance sheet, and changes in equity is presented to predict the outcome of a
company’s results. Financial statement review allows the finance manager to:
evaluate the company's operating performance and managerial effectiveness.
Analyzing the company's financial assets and disadvantages and
creditworthiness.

The socio-economic study involves an overview of the demographic


structure, population dynamics, resources for infrastructure, human health status
and economic characteristics of the study area, such as employment, per capita
income, agriculture, trade and industrial growth. This research includes the
employment generated, dispersal of income, and community distribution. In order
to understand how a specific social group or socioeconomic class acts within a
society, including their behavior as consumers, social economics is important.

In order to improve the image of a company and grow its brand, the
corporate social responsibility strategy and the proposed corporate code of ethics
are important for the company. Social accountability empowers workers to take
advantage of the organizational instruments open to them to do good. Formal
corporate social responsibility programs can boost the morale of employees and
lead to greater productivity in the workforce.

Lastly, project Implementation shows where the product of SaniTect is


going to be showcased. The layout and the design of the booth is shown to get
an idea of the theme of the company. After assessing, determining, visioning,
preparing, applying for funds and seeking a project's financial capital, which is
the logical conclusion.

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BUSINESS DESCRIPTION

A. The Business Concept and Model

I. Pre-Mktg. Research Business Model

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SaniTect’s business model comprises the essential aspects that the business

needs to consider in their operations. The business model canvas is a framework

that gives company owners a view of the company's overall structure. SaniTect’s

key partners, key activities, key resources, value proposition, customer

relationships, channels, customer segments, revenue streams, and cost structure

are listed in the business model.

II. Enterprise Name

The spread of the 2019 Novel Coronavirus has brought drastic changes in the

lives of people. At this moment some are experiencing fear and anxiety

whenever they wander outside their homes to buy their necessities in crowded

places like malls, supermarkets or even at school, since majority has face to face

class and blended class. With this situation in mind, the owner of the business

came up with SaniTect. SaniTect is a product-based company that specializes in

producing automatic full-body sanitation devices.

In the owner’s perspective, the business name came from the word “sanitize”

which is one of the duties of SaniTect’s products. But there is a deeper meaning

behind the business name. The product that SaniTect creates has the purpose of

sanitizing the entity’s customers as well as gives them protection against the

viruses that may attach to their clothing or any part of their body. Because of the

SaniTect’s products, customers don’t have to worry about the virus that is

circulating around while buying their necessities. SaniTect’s products aim to give

consumers peace of mind while entering a crowded place.

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III. Location

The company, SaniTect, selected Cebu Business Center as the location for

their main office. Cebu Business Center is a 50-hectare master planned

development located in Cardinal Rosales Avenue, Archbishop Reyes Avenue,

Cebu City, integrating business, sports, residential, recreational, and leisure

facilities, the main feature is the 9-hectare Ayala Center Cebu shopping mall, that

draws over 60,000 shoppers daily and increases on weekends. Starting a

business needs a strategic marketing plan that includes paying for advertisement

on the internet, newspaper and other forms of medium to draw the attention of

the consumers. Since Sanity is a starting company, having a location in a busy

area like Cebu Business Center helps the company the option of experimenting

with different marketing approaches that can prove to be less expensive but

more effective.

SaniTect’s plant site is located in Mandaue City, Cebu specifically in

Pagsabungan. Mandaue City is strategically located 10 minutes away from the

inner core of the Metro Cebu Area. It is the industrial hub in the region hosts

about 10,000 industrial and commercial locators, thus making it the “little rich

city” in the country. Mandaue is a source of getting resources needed for the

production of the product. It benefits the company in a way that they have easy

access to such resources and have less to no chance of delay deliveries.

IV. Descriptive Definition of the Project

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COVID-19 has rapidly affected our day-to-day life, businesses, disrupted the

world trade and movements. It has been stressing every one of the countries it

touches; it has the potential to create devastating social, economic and political

effects that will leave deep and long-standing scars. A starting company

interprets this pandemic as an opportunity for the business thus, comes up with

an innovative idea from a regular sanitation booth that can both benefit the

business and the people.

SaniTect is a one-of-a-kind built-in walk-through disinfectant spray with

infrared camera designed specifically for all human traffic establishments to

ensure all those entering are sanitized from head-to-toe. Suitable for entrances

catering many people such as schools, hotels, hospitals, factories, airports,

office, and buildings. An infrared camera, which is a non-contact temperature

measurement device, is also built-in along with SaniTect. As you walk through

the entrance, an infrared camera would check your temperature, if your

temperature is normal – you are ready to be disinfected for 6 seconds. The

atomized liquid spray saturates using an integrated hydraulic spray system. But if

your temperature reaches 37.5°C – then you are not allowed to enter the

premises. In addition, people should not worry if children would go to the

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sanitation process because the nozzle would be adjustable depending on the

height of the person. In this way, it is possible to sanitize all surfaces including

those not directly exposed to the nozzles. It is labor saving in a way that the

security guards won’t have a hard time letting people in and it is safer without

contact because it automatically detects a person upon entering and does the

work. Its features include – spray nozzles creating an effective disinfectant mist

and motion sensors for automatic operations. The disinfectant/sanitizing liquid

being used is recommended by medical institutions and the government.

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B. Company Statements

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I. Core Values

SaniTect is centered on these four values namely accessible to all, innovation, safety,
trust and care, the company wants all consumers to experience the product which will
make the customers’ lives easier. Safety is an important value because the business
focuses on a product that can protect consumers from the virus. Trust and care are an
essential value for the company to create long – term relationships.

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II. Responsive Logos & Tagline

Logo of SaniTect

Logo of SaniTect with Tagline

Responsive Logos of SaniTect

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MARKETING PLAN

A. Strategic Marketing
1. Research
Chapter 1
INTRODUCTION

Rationale of the Study

Sanitation plays a big role in adapting and facing different changes in


ecological and human environments (Luthi et. al., 2011). Adequate hygiene and
sanitizers are deemed the cornerstone of infection prevention, and is essential to
minimize the colonization and the transmission of infection in public places and
healthcare institutions. Hand Sanitizer Market - Global Outlook and Forecast of
the year two thousand twenty to two thousand twenty-five is expected to reach
over eleven million dollars, growth of over six hundred percent from two thousand
nineteen (Pharm, 2020). In March 2020, the World Health Organization (WHO)
said that sanitation is important in protecting and securing the body in the
outbreak of the infectious virus which is the Novel Coronavirus Disease 2019
(COVID-19). They elaborated that the components of the sanitizer should consist
of ninety six percent of Ethanol which is essential in intoxicating the ingredients,
three percent of Hydrogen peroxide to avoid infections and ninety eight percent
of Glycerol which is important in moisturizing the skin. People see sanitation as
an innovative solution and sustainable approach in the current problem (Luthi et.
al., 2011).
The lack of effective barriers for preventing the transmission of COVID-19
via wastewater, poor sanitation and hygiene practices motivates the need for an
in-depth analysis of the potential for faecal-oral transmission of COVID-19 in
developing countries (Gwenzi, 2020) The Philippines is known to be one of the
most populous countries in Asia. Over 109 million people are living in the
Philippines and approximately one-third of the country’s population lives in
poverty (ChildFund) thus, most families face insufficient sanitation. Days after the

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lockdown was announced, it was evident that the action plans prepared would
not be enough to ensure social protection for all Filipinos. Having a shortage of
hospital beds, mechanical ventilations, and equipment are among the pressing
issues of having a population of 100 million people, this pandemic aggravates the
long-standing symptoms of a weak and scarcity of resources resulting in a rapidly
increasing number of infected people. Taking some safety measures in
responding to this pandemic by having a community lockdown, wearing masks
outside, curfew, quarantine passes, no gatherings, age restriction under 21 yrs.
old and above 60 yrs. old, and most importantly social distancing are being
implemented by the presidents to help alleviate the positive cases of COVID-19
in our country. These safety measures are not followed by all and having a
deficient health and sanitation equipment therefore, resulting to new positive
cases.

The current problem in the world right now, gives the opportunity for the
SaniTect Company to innovate and formulate a technology that helps in
preventing the contamination of the virus not just simply in a particular body part
but the whole body of a person in going to public places. It will be a waste of time
for a company to let their security guards do the work manually of getting the
temperature and spraying hand sanitizers. The reason why the company is made
is to provide the need of sanitation booths for stakeholders for the economy to be
stable again. The SaniBooth that is created by the company is a walk-in booth
which has a thermal scanner that scans the temperature of a person and it needs
to be at 37 degree Celsius and below for the mist to spray disinfectant in the
body. The product uses a non - toxic disinfectant that will benefit not just the
humans but also the environment.

This study is chosen to suffice knowledge to the companies, investors,


employees, and future researchers that could help them in establishing and
adapting the new normal by evaluating the needs of sanitation booths in the
Philippines. This study also assesses the implemented preventions and solutions
that affect the country in facing the current problem in the world. Moreover, the

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study aims to provide companies the benefits in purchasing sanitation booths
that can help in operating the business during pandemic.

Objective of the Study


This study aims to assess the marketability of SaniBooth by SaniTect through
determining the buying preference of the target market based on the marketing
mix (Product, Price, Place, and Promotions). Specifically, the marketing study will
explore on the following areas:
1. To establish how/which demographic factors of the target market affect
their buying preference/behavior, namely the:
1.1 Age
1.2 Monthly Income

2. To identify the significant relationship between the buying preference to


the product features and the demographics of the target market to the
marketability of the product.
2.1 Durability
2.2 Reliability
2.3 Design
2.4 Branding

3. To distinguish the price perception of the market to the product SaniBooth


based on its quality.

4. To show which is the most preferred location in terms of accessibility of


the product based on the buying preference of the target market.
4.1 Physical store (Cebu Business Center)
4.2 Online store

5. To indicate which promotional mix is the most effective in enticing the


target market based on their buying preference

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5.1 Tradition
5.1.1 Print Media
5.1.2 TV

5.2 Non-Tradition
5.2.1 Person
5.2.2 Event

5.3 Digital
5.3.1 Social Media
5.3.2 Affiliate Marketing

Statement of Hypothesis
1. To specify the demographic factors of the target market.
(There is no need for hypotheses since data will use frequency
distribution.)

2. To identify the significant relationship between the buying preference to


the product features and the demographics of the target market to the
marketability.
Ho: The features of the product have no significant relationship in
the buying preference of the target market.
Ha: The features of the product have a significant relationship in
the buying preference of the target market.

3. To distinguish the price perception of the market to the product SaniBooth


based on its quality.
(There is no need for hypothesis since data will use frequency
distribution.)

4. To illustrate the location of the place where product accessibility affects


the buying preference/behavior of the target market.

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(There is no need for hypothesis since data will use frequency
distribution.)

5. To indicate which promotional mix is the most effective in enticing the


target market based on their buying preference.
(There is no need for hypothesis since data will use frequency
distribution.)

Scope and Limitations of the Study


This study is conducted to assess the marketability of SaniBooth by
Sanitect. The main focus of this study is to determine the buying preference of
the target market based on the Marketing Mix (Product, Price, Place, and
Promotion). This study includes the assessment of the demographic factors that
may affect the buying preference of the target market in the forms of Age and
Monthly Income. Moreover, this study will not include other factors which are not
selected under the Demographics, Product Features, and Promotional Mix. The
data collection will be conducted to the target market of Sanitect, which are the
business owners and entrepreneurs who reside their business or live in Metro
Cebu particularly in Cebu City, Mandaue City, and Lapu-Lapu City. It will not
include the target market that is outside of Metro Cebu. Due to the Coronavirus
pandemic, the researchers will not conduct the survey in-person to avoid getting
infected to the virus instead the study will be done through the utilization of online
survey questionnaires by using different online platforms to communicate to the
target market and the result of the conducted survey will be used as a data and
reference to come up conclusions of the study.

Significance of the Study


The knowledge and information provided in the study is both practical and
relevant for various sectors of the economy Since the market and economy is
growing and shifting, the findings of this study is relevant to the following:
SaniTect Company. The results will provide the company with know - how on

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gaining more profit and new strategies to boost the business. With the gained
profit, there will be higher chances of opening new branches to widen the reach
of the business. 

Community. The use of SaniTect’s product would lessen the contamination to


other people and it would maintain the cleanliness of oneself. It would also
prevent and protect human health during all infectious disease outbreaks such as
human-human transmission of pathogens.

Target Market. This study will contribute to the orientation of the select target
market about the promotional mix of SaniTect Company. It gives them a chance
to acquire the preferred product they expect from the company itself.

Aspiring Entrepreneurs. This study will provide more information and insights
to the aspiring entrepreneurs who are planning to venture into the industry of
sanitation booths as they are provided with the important variables to consider in
starting a business in a specific target market. 

Customers. These people will acquire understanding about the importance of


SaniTect’s product and its services. This study also provides a description of its
difference from other sanitation booths. 

Future Researchers. The study serves as a guide to the future researchers as


to give them more knowledge in understanding the importance of having a
deficient health and sanitation. This research will be a useful reference for the
researchers who would plan to make any related study.

Definition of Terms
Customers. Customers refer to the potential buyers of the product. It includes

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the target market of the company.
Buyer’s Preference. Buyer’s preference refers to the customer’s subjective view
on the product. In this study, the buyer’s preference is the dependent variable.
Demographic Factors. Demographic factors specifically refer to the monthly
income and the age of the respondents of the study.
Preferred Product Features. Preferred product feature refers to the
characteristics of the product that are desirable to the target market. This study
focuses on the product features branding, design, durability, and reliability.
Respondents. The respondents of the study are the people who are part of the
target market that took part in the gathering of data. They are business owners in
their early 20’s to late 40’s.
SaniBooth. SaniBooth is a full-body sanitation booth that is manufactured by the
SaniTect. In this study, the researchers studied the marketability of SaniBooth.
Sanitation. Sanitation refers to the conditions relating to public health, the
development and application of sanitary measures for the sake of cleanliness,
protecting health, etc.
Target Market. Target market refers to business owners within the Cebu area
who are in their early 20’s to late 40’s.

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Chapter 2:
REVIEW OF RELATED LITERATURE AND STUDIES
This chapter discusses the theoretical background of the study. Discussions
regarding the frameworks of the study specifically the conceptual and theoretical
frameworks, review of related literature and review of related studies are included
in this chapter.
Theoretical Background
The theories that will be used for this chapter are Consumer Preference
Theory, 4P’s Theory of Marketing, and Theory of Microeconomics. The main
theory of this study is the Consumer Preference Theory which is about how
consumers think and behave that it affects their buying preferences and
decisions. Moreover, 4P’s Theory of Marketing will help to identify some key
factors for business on how the product or service meets or fails to meet the
needs and wants of the consumers and how it will stand out from their
competitors. Lastly, the Theory of Microeconomics which describes how
individuals and businesses make decisions regarding the allocation and
utilization of resources.
Consumer Preference Theory
This study uses Consumer Theory to understand the buying preference of
the target market when making buying decisions. The consumer theory describes
how people make decisions in purchasing goods and services, given their
preferences and budget constraints like limited income. The business will be able
to assess the different criteria and options of what individuals are looking for
certain products or services. This theory can also help the researchers to have
more knowledge about their customers and make it a reference in the planning of
their product. The main objective of consumer theory is to determine the impact
on observable demands for commodities of alternative assumptions on the
objectives, on the behavioral rules of the consumer, and on the constraints that
they face while making a decision. Consumer theory helps us see how individual

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consumers behave in a large market. With the model, we can determine whether
goods are substitutes or complements, normal or inferior, and use the final
effects to see how consumers respond to price changes (Barten and Bhom,
2006). The Consumer Theory discusses how consumers would make decisions
in purchasing goods and services and what factors it affects their decisions.
Apart from the general problem of choice theory, it is a precise structure that
enables us to extract economically reliable results. The framework is created
when certain prices, income, or resources of the consumer are believed to
determine the consumer's option sets (Melvin & Milgrom, 2004).
4P’s Theory of Marketing
The 4P’s was created by E. Jerome McCarthy in 1960, it is a managerial
approach that covers analysis, consumer behavior, market research, market
segmentation, and planning. It is a framework that businesses use when they are
creating strategies and conceptualizing how to promote their products and
services to the market. Before E.J. McCarthy established the 4P’s of Marketing,
Neil Borden in 1953 first introduced the concept of the marketing mix, where the
marketing mix is a variety of different factors that can affect the consumer’s
decision to purchase a product and service. It refers to the product, price, place,
and promotion, these factors can be controlled and manipulated by business and
if it is blended strategically it can make desired behaviors from the consumers
that the companies want (“Marketing Mix: The 4Ps Of Marketing for Businesses,”
n.d.). The 4P’s of Marketing are utilized by businesses to help them identify some
key elements for their companies, it includes what customers’ needs and wants,
how the product or service addresses or neglects to meet those needs, how it will
stand apart from their rivals, and how it interacts with their clients (Twin, 2020).
Theory of Microeconomics
Microeconomics theory describes how individuals and businesses make
decisions regarding the allocation and utilization of resources. The study of
microeconomics is divided into five sections. First, the theory of consumer choice
and demand explains how the typical consumer that is constrained by a limited
income selects goods and services that are low in price. The second section

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deals with the choices made by businesses on what goods and services to
produce, how much quantity to produce, and at what price shall it be sold. In the
third section, it will be the combination of the theory of consumer and the firm,
which explains how the decisions of consumers and businesses are coordinated
through movements in the market price. The fourth section describes the supply
and demand, which discuss that these resources will undergo into the production
process. These inputs; labor, capital, land, and entrepreneurial talent are all the
things that the business must obtain and possess in order to produce the goods
and services that will satisfy the unlimited wants of the consumers. And lastly, it
deals with the area known as welfare economics, it discusses the organization of
markets and how they achieve efficiency (“A Review of Microeconomic Theory,”
n.d.).

Theoretical Framework

Figure 2.1 shows theories that deem to be essential factors in determining


and evaluating the marketability of SaniBooth to the target market. The
Consumer Preference Theory will guide this study to assess and identify which
among the buying preferences have a significant effect on the business and also
helps the company see how consumers behave in the market. Furthermore, the
4P’s Marketing Theory will assist the main theory to analyze the preferences of

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the

target market in terms of product, price, place, and promotion, where the
researchers will be able to assess how consumer’s perception will influence
these factors in today’s competitive market. This theory will help to identify some
key factors for the business like what is the target market wants and need, how
the product meets and fails to meet the standards, how it will stand out from their
competitors, and how it interacts with their customers (“Marketing Mix: The 4Ps
Of Marketing for Businesses,” n.d.). Thus, these theories that mentioned are
interrelated and connected as it directs to the target market buying preferences,
which will help this study to respond to the research problem which if their
product is feasible and viable.

Conceptual Framework

There are two characteristics incorporated to SaniTect, product quality


and lean production. Product quality is a factor that leads to customer satisfaction
considering the 4p’s – place, price, promotion, and product as its variables. For
place, SaniTect is a company that distributes its products directly to the
customers, with no retailers, middlemen and other intermediaries involved but
only the business and the end users of the product. SaniTect uses Competitive
pricing strategy in which the competitors’ prices are taken into consideration

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when setting the price of the same or similar products. SaniTect would promote
its product by sending out catalogues to big companies or establishments about
what our product is all about and also promotes through online via Facebook and
Instagram. It will be easier for the company to flaunt the attention of the target
market. Lastly, the product of SaniTect is an innovative product from a mere
hand sanitizer to a sanitation booth as what we called SaniBooth. It is an actual
product referring to the tangible product that the customers buy to avail its core
benefits which is to sanitize people upon entering the establishment to help
mitigate the spreading of the virus.
Since SaniTect is a manufacturing company, lean production exists.
Applying this approach eliminates which does not add value, and delivers the
best possible product to the customer as quickly and with as few barriers as
possible. SaniTect aims to focus on a minimal number of pieces at a time,
minimizing work in progress, process interruptions, and reducing waiting time but
improves quality. SaniTect adapting to sustainability in the business is more than
just profit but rather see it as how they impact on the society and the
environment. The business will recycle carton boxes, instead of throwing it away,
making it a material for the packaging of the product upon delivery. The plastic
that is being used in the making of the product is made of compostable plastic.
Based on the Lab Review Manual, Steramine falls under category II in toxic
category which is less harmful than using hand sanitizers. SaniTects adapts to
lean production and sustainability to be one of many manufacturing companies
who are becoming greener.

Review of Related Literatures


The study part of the paper is composed of existing related literature that
validates and assesses the relationship between the different variables of this
study, namely marketability, buying preference of the consumer, product
features, price, place, and promotions. Customer awareness, sanitation industry,
and steramine are also discussed in this section.
Customer Awareness

31
The decisions made by target audiences are influenced by its target
consumer perception (Jitapinyakul, Phunsuk, & Phithakkitnukoon, 2019). This
motivates organizations to focus harder on marketing aspects. If these target
businesses have not heard it through various means of communication such as
word-of - mouth, and social media channels, one's goods are not enough to
satisfy the target market. This affects the viewpoint of the individuals, allowing
the data to be checked before purchasing them. Thus, it encourages target
companies of the business to also look at the safety of their target markets.
Since such individual knowledge simply brings more of a high-quality
product regardless of what the corporations think of their works, the target
consumer views are more respected (Lee, Oh, & Yoo, 2019). Because these
people are the ones who are served, entrepreneurs just need to persuade
buyers. With this recognition, the results are either a source of improving the
prestige of the companies or dragging them down. This is a vital factor, because
the state of a certain organization is largely concerned. With a great deal of
research and growth, corporations would have better chances of achieving the
satisfaction of the community. Consumers are exposed to unfair and fraudulent
tactics of marketers due to lack of knowledge, and that is why there is a need to
build consumer awareness in the region. The degree of market knowledge
influences the level of customer satisfaction and the standard of living. In
conclusion, consumer awareness can be defined as a clear understanding of the
need and priority of buying, purchase agreement condition guarantees, and
target consumer rights and duties.
Sanitation Industry
Mara et. al (2010) stated that for good health and social and economic
growth, adequate sanitation, along with good hygiene is essential. Human
coronavirus disease is now a global pandemic (COVID-19), in the ongoing battle
against it, social distancing, hand grooming and the use of personal protective
equipment dominate. Due to this reason, the sanitation industry had been in a
high need of people especially, the Filipinos. In developing countries, only scant
attention has been paid to the need for sanitation (Gwenzi, 2019). In other words,

32
the sanitation has not yet received much attention despite its significance in the
well-being.
Supplies of hand sanitizer have been rapidly declining in view of growing
infections emerging. In fact, 74 percent have been reported as having difficulty
finding hand sanitizer in the midst of the pandemic, according to a nationally
representative Consumer Reports survey (Hakimi & Armstrong, 2020). Access to
global sanitation is a problem that hinders people worldwide. It clearly affects the
rural and developing countries of the world overwhelmingly. Hence, the rising
demand has led businesses around the nation to transfer their efforts to hand
sanitizer manufacturing.
Marketability
Marketability as defined by Meriam-Webster’s Dictionary is the “ability of a
commodity to be sold or marketed.” A definition by Newton (n.a.) described
marketability as “a measure of whether a product will appeal to buyers and sell at
a certain price range to generate a profit.” Products and services are considered
marketable when it has the potential to be sold to a specific target market for a
certain price. A study conducted by Srinivasan, Lovejoy, and Beach (1997)
Business owners usually conduct marketability research in order to determine if a
certain product will attract the desired target market.
Before starting up a business venture, most business owners determine
factors that affect the marketability of the product. One factor that is highly
discussed in several literatures is the customer’s buying preferences. Weedmark
(2018) defined consumer preference as “the subjective tastes of individual
consumers, measured by their satisfaction with those items after they’ve
purchased them.” Consumer preference is subjective and is dictated by personal
taste, culture, education and many other factors such as social pressure.
Understanding customer’s buying preferences is beneficial in determining the
demand of your product.
Buying Preference
Buying preference is subjective meaning it can vary from one person to
another. Demographic factors can affect the buying preference of a target

33
market. According to Lee (2005), demographic characteristics, such as gender,
age, income level, educational level, etc. is essential in consumer’s purchase
decision process and can cause deviation from general patterns of consumer
decision making. It is important for a business owner to have a general
knowledge about the demographic of the target market so that they can make
decisions that will lead to the survival of the business. “When marketers think like
demographers, they gain an understanding of how things work that can help
them increase market size, deepen market penetration, and carve out market
share” (Exter, p. 20, 1988).
Steramine
United States Environmental Protection Agency (2018) provides users
with information regarding the toxicity, irritation, and sensitization hazards of the
chemical. The Signal World, Hazards to Human and Animals, Personal
Protective Equipment, and First-Aid statements are determined by the results of
five acute toxicity studies including acute oral, acute dermal, and acute inhalation
studies evaluate systemic toxicity via the designated routes of exposure. The
primary eye irritation and primary skin irritation studies measure irritation or
corrosion, while the dermal sensitization study evaluates the potential for allergic
contact dermatitis. The formulation of steramine falls under the toxicity category II
labeling its acute oral: 50 thru 500 mg/kg, acute dermal: 200 thru 200 mg/kg,
acute inhalation: 0.05 thru 0.5 mg/liter, primary eye irritation: corneal involvement
or other eye irritation clearing in 8-21 days, and primary skin irritation: severe
irritation at 72 hours (severe erythema or edema). By the presence of methanol,
its reaction is most severe labeling Toxicity Category I as DANGER, Toxicity
Category II as WARNING, Toxicity Category III as CAUTION, and Toxicity
Category VI as None Required.
4P’s of Marketing
Kotler (2000) defines the 4P’s of marketing as the "set of marketing tools
that the firm uses to pursue its marketing objectives in the target market". Borden
(1965) was the first to use the term marketing mix and defined 12 elements
namely: product planning; pricing; branding; channels of distribution; personal

34
selling; advertising; promotions; packaging; display; servicing; physical handling;
and fact finding and analysis. Several authors have refined Borden’s work and
the development then led to the creation of the 4P’s of marketing. The 4P’s of
marketing is a concept presented by McCarthy (1964) with elements namely
product, place, price and promotions.
Product
There are various requirements and guidelines for consumers about the
product they purchase. If a company's product is pleasant, the consumer is well
pleased. In which the desired, durable products are offered and not provided
where durability is poor among the attributes valued by the target market. The
understanding of the customer is affected by multiple variables that may affect
the improvement in the durability of the product. Knowing the client's mental
picture of the organization exposes the organization's strengths and weaknesses,
adopts strategies and improves results, as described by Donighi & Yousefi
(2015). These indicate that the customer's buying intent is influenced by
durability. The proportion of customer satisfaction is higher than the other two
factors, and the proportion of product longevity is less than the perceived value.
Product Quality is a “value for money, conformity to requirements and
meeting of customer’s requirements” (Hoe, 2018). The product assessment of
the target consumer is affected by the previous product they have purchased in
the same sector or may be its rivals. If the customer does not have any previous
experience, their expectations are more likely to be based on word of mouth,
news stories, reviews and such. One of the aspects that could impact the
assessment of the organization is the promotional strategies. Since the intention
of the consumer purchasing could be from the promotional materials they have
seen, it could also be from social media, new trends and more.
Place
Place is defined as the "direct or indirect channels to market, geographical
distribution, territorial coverage, retail outlet, market location, catalogues,
inventory, logistics, and order fulfillment". Place can either be a physical location
or the distribution channel (Blythe, 2009). Accessibility is a term often coined to

35
place.
Pricing
According to Manukka (2018), the intention of a customer to buy relates to the
price and has an important relationship between the perception of the price of the
target market and their buying intentions, in which the formation of price
perception is more graphical and influenced by satisfaction with the pricing. In
selling the product to the target customers, it is not considered as an easy task to
which the change of prices over time is to be monitored in order to achieve better
returns, due to the associated saturation effect with a durable receipt of product,
the current demand means that it depends not only on the current price, but also
on past ones in a recursive way (Zhang & Chang, 2018). By way of explanation,
the businesses need to think of a valuable price that fit the expense of its
product. Hustic and Gregurec (2015) stated that there are unnumbered elements
that affect the price which are divided into two, the internal and external
elements. The internal elements that affect the change of price are: impact of
markets and the target consumers.
Wasserman (2009) stated that it is easy to price goods since the owner
can estimate how much it worth based on its cost production. Any form of pricing
strategy can somehow be used by the owner to achieve their target profit.
Infoentrepreneur.org (2009) explained that one of the most significant business
decisions they can make is the price of the owner's goods or services. Setting the
wrong price will restrict the growth of a company. The worst case is that it will
create significant problems with company revenue and cash flow. In starting a
company, it is essential to consider planning the pricing strategies.
Promotional
The traditional way for reaching out to potential customers is through Print
Media. Print media (or Print-based media) narrowly refers to any form of ‘ink and
paper’. This includes books, journals, memos, magazines, newspapers,
pamphlets, and periodicals. Print media advertising according to Linton (2019) is
a “form of advertising that uses physically printed media, such as magazines and
newspapers, to reach consumers, business customers and prospects.”

36
Advantages of using print media includes increases memory retention, flexibility,
staying power, growing awareness, budget-friendly, and provides impact (Bean-
Mellinger, 2018) Today, it is still not concluded that the use of Print Media is
inefficient and that there are still several cases where print media would be more
useful.
For non-traditional, this study will be focusing on personal selling and
events marketing. In an article by Williams (2017), she defines personal selling
as an approach that individualizes the sales process. Sellers humanize
themselves and show that they are there to help customers. This means that
sellers should try to understand the customers rather than ambush them with
products or services. In an article posted by Vink (2017), it states that personal
selling is important to initiate and build the commercial face-to-face relationship
with customers. In selling situations, the salesperson can adjust the message
they are trying to give concerning the product or service and facilitate better
understanding. The salesperson forges a two-sided communication with the
customer to reach a mutual ground and benefit both the business and the
customer. While print media deals with providing information to customers with
handheld items, personal selling deals with delivering information face-to-face to
the customer in an interactive manner. These two forms of marketing can be
used in selling the service directly to the customer.
Event marketing is a strategy used to advertise products during events. It
involves face-to-face contact between companies and their customers at special
events like concerts, fairs, and sporting events (Marketing School Org., n.a.).
This strategy is used by companies to attract a specific group of customers in an
engaging way. This strategy does not just give out the information but also it
allows customers to experience the product or service in real time.
Apart from these two, the researchers dive into cyberspace and discuss
the third form of marketing in the promotional mix - Digital marketing. Part of the
marketing mix and one of the most proliferated strategies of marketing in the
modern times is digital marketing. The digital marketing form that will be focused
on this research is Social Media. A short description of social media is that it

37
involves driving traffic to the website or business through social media sites like
Facebook, Instagram and Twitter.

Review of Related Studies


Researching existing studies can help the topic to be more viable and
accurate regarding the connection between the product of the company and the
demand of the product of the consumer.
A study entitled “Critical discussion on the applications and implications of
chemicals in sanitizers and disinfectants” by Atolani, Baker, Adeyemi,
Olanrewaju, Hamid, Ameen, Oguntuye, & Usman (2020) discussed that
sanitizers have been a way of prevention as the vaccine for the corona virus has
not been made. It is a product that prevents contaminating the microorganism
from other individuals. Its solution and smell is one of the factors that the target
consumers look for when buying such. The study focuses on what should be the
ingredients of a sanitizer considering that there are ingredients that may harm a
certain individual in using the product. In connection with the study, it shows how
the sanitation business should look at the safeness of everyone specially that
there is a pandemic.

The Atolani, Baker, Adeyemi, Olanrewaju, Hamid, Ameen, Oguntuye, &


Usman study gap is that the sanitizers that are being discussed are only for a
specific part in the body and not the whole. This would result in the products of
being commercially convenient for a lot of consumers but not effective in
preventing the contamination of the virus. On the other hand, the SaniBooth of
SaniTect gap focuses on the whole sanitation of the body. This would result in
convenience for some due to the fact that it cannot be brought anywhere unlike
other sanitizer but it will be most effective for a consumer to purchase it.
Therefore, with these gaps recognized, this study will know what are the
adjustments needed to be remembered to cater its target market the best
product.

In assessing the buyer’s preference of a product, the first impression of

38
the target customers has to do with the appearance of a product that affects how
it perceived its value based on the study entitled “Design Guidelines for Product
that Influence Consumers’ Value Perception” by Li (2016). The study explains the
factors that can be considered of a target consumer in buying the product. The
design that a company can adopt for its product, which includes its contextual
distinctions, roles, shapes and human factors that can satisfy the target
consumer’s preference and increase its revenue in terms of selling the product.
In relation to the study, a business should always consider that its target
customers also look at the quality of the product and its longevity.
The research is associated with the business since the company seeks to
serve high-quality products with best designs that will build the company's brand.
This helps buyers and customers to understand what to expect from the
organization and what the corporation wants to deliver. It is a way of separating
the company from its rivals and describing what makes it easier to pick. The Li
study gap is that it lacks guidelines in using such products in an eco–friendly
way. This results in the products being an enticing one and good quality but may
harm the environment. The gap of the study of SaniTect is that it will be
considering the good ecological impact of the product to its environment. With
this research, negative effects of the product to the ecological factor will be
reprimanded in order to establish a better brand loyalty.
Phillips (2016) articulate that there are currently prominent cases of market
players working agreeably. Associations like Safaricom Foundation in association
with Scope International have set up disinfection corners to help check the
spread of COVID-19. The sterilization stalls have been introduced at Kenya's
fringe to Tanzania at Isebania in Migori County and at the Ugandan outskirt in
Bungoma and Busia provinces. Joseph Ogutu (2020), the chairman of Safaricom
Foundation, stated that cross fringe contaminations are one of the powerless
connections that exist just as packed territories, for example, the ship and bus
stops. In order to solve the dilemma, they chose to set up sterilization corners in
these spots to limit the dangers. Ship clients will profit from stalls set up in
Homabay and Siaya Counties. In Kisii County, the disinfection stalls have been

39
set up at the primary transport stage, the Migori-Kisii-Homabay intersection and
the Nairobi-Kericho-Nyamira travel. An expected 60,000 individuals are relied
upon to utilize the disinfection stalls every day over the six provinces. The
corners were introduced at an expense of KES 1.1 million. Safaricom
Foundation has been effectively engaged with endeavors to assist individuals
with adapting to the COVID-19 pandemic. This study shows the need of
sanitation booths in the area.
The School of Civil, Environmental and Geological Engineering driven by
Francis Aldrine A. Uy (2020), as a team with engineers from different offices and
USHER Technologies put forth two advancements to help our administration's
attempts to battle COVID-19. The original was a minimal effort versatile
sterilization chamber otherwise called the "GOCLEAN Chamber ''. The thought is
for these chambers to be put in all passages and expects individuals to get
sterilized before they can go inside the structure. The cleansing occurs for a
couple of moments, wherein a fog of ethyl alcohol is transmitted inside the
chamber. The following development is the COVID-19 swab test stall. Its plan
depended on Korean testing stalls with negative strain to keep air from coursing
and to shield the well-being specialist from getting contaminated from the
vaporized producing system being performed. The test corner is sanitized after
each swab strategy which will help lessen substitutions by the wellbeing
specialist. More individuals are relied upon to get tried with the improved testing
activity. Our limit to this study is that COVID-19 swab test stall is not included.
The accessibility of a product is one factor that business owners consider
especially in creating a product-based business. In the 4Ps of the marketing mix,
the accessibility of the product is usually related to place. Place is the part of the
marketing mix that refers to where the product or service is accessed and how
the product is distributed. According to Musungwini and Zhou (2014), customers
are more likely to be satisfied with the product if it is available at the right place,
right time, and in the right quantity.
Location plays a vital role in the business. The relationship of business
location with business success was shown in past research conducted by Alli et

40
al. in 1991. A study conducted by Indarti (2004) concluded that business location
has a direct and significant effect on business success especially for service
businesses. The author further stated that specific location factors which are
important may vary from one business context to another.
In the modern age, product-based businesses are given two options on
where they should place the product for the purpose of selling. The options
considered are traditional stores or the physical store and online stores. These
two locations have varied and distinct advantages and disadvantages. A study
conducted by Ming-Hsiung (2009) discussed the difference between physical
store shopping and e-shopping or online shopping. The study is focused on
determining the consumers’ preferred shopping mode in terms of time attributes
and monetary value when buying books. The study used “stated preference”
experiment and the data collected was through personal interview with
questionnaires. The results of the study show the different values of time, namely
the travel time to shopping places and the value of waiting time for the delivery of
purchased products affect the customers' responses. In addition, the study also
found that in “terms of monetary values, avoiding a shopping trip to a bookstore
produces far more benefits than bearing waiting for the delivery of online
purchased books.” The study also discussed some psychological concerns
towards e-shopping like and late satisfaction and uncertainty that can greatly
affect consumers’ frequency in buying online. The study’s limitations were also
disclosed. The first limitation is the study did not consider the different types of
products to be bought online. The author stated that “the value of product
delivery time seems to highly depend on the types of products consumers shop
and purchase.” Second, the study did not consider the possibility of book
shopping being part of a cluster of shopping trips which can lessen the disutility
of shopping for books. Lastly, the empirical data this study collected were stated
preference rather than revealed preference.
A study by Kacen, Hess, and Chiang (2013) was conducted to understand
the benefits of e-commerce by determining the values important to consumers
and comparing the online stores to traditional store in relative to valued

41
attributes. The researchers conducted a web-based and paper-based survey with
a respondent count of 224 shoppers. The survey was constructed in a way that
allows the researchers to measure the value that consumers placed to online
stores in comparison to traditional stores. The researchers measured the
consumers’ perceptions of the performance of online stores with regards to
Eighteen attributes. The result of the study shows that online stores are less
acceptable than traditional stores due to the disadvantages that were presented
namely shipping and handling charges, exchange/refund policy for returns,
providing an interesting social or family experience, helpfulness of salespeople,
post-purchase service, and uncertainty about getting the right item. The authors
further stated the advantages of online stores which are brand-selection/variety
and ease of browsing do not entirely overcome the disadvantages listed above.
The two studies above viewed the comparison of online stores and
traditional physical stores in different perspectives. The first study focused on
time value while the second study was more focused on the consumers’
valuation and attitudes in relation to the Eighteen given attributes. These studies
have their own gaps that should be further investigated.
According to the World Health Organization (2020), the Corona disease
(COVID-19) is a viral disease. The virus affected millions of people in different
countries. This new infection and illness were obscure before the episode started
in Wuhan, China, in December 2019. Philippines has seventeen areas that are
still considered dangerous and has a hundred new cases for each day. Out of
complete 344,713 affirmed cases announced in the Philippines until today, fifty-
five percent are male, with the most affected age group twenty to twenty-nine
years trailed by thirty to thirty-nine years of age. The economy of the country has
decreased dramatically due to the pandemic. Most Filipinos have lost their jobs
and are striving to find a way to earn for a living. In November, the Philippines
may start direct of COVID-19 vaccine clinical trials. Government officials are
presently preparing for the lead of COVID-19 immunization stage three clinical
trials in the nation which are set to start in November. During the clinical trials
phase three, an antibody is tried in a "large gathering of individuals" to affirm its

42
effectiveness and wellbeing. This study affects the buying preference of the
consumers.
A study according to Ford in 1995, It is significant that a powerful
arrangement is arranged and executed to guarantee safe enter to and exit from
premises associated with being infected with a virus. The arrangement must
incorporate documentation of altered cleaning and cleansing methodology for all
staff who enter and leave infected premises. The emergency techniques should
enhance routine biosecurity exercises, to forestall the spread of diseases to
different premises. Biosecurity measures - including standard washing, cleaning,
sanitization and disinfection programs-help in decreasing and taking out malady
causing life forms. Compelling biosecurity measures, along with other pragmatic
administration applications in creature creation, at last add to the creation of a
more secure environment.

43
Chapter 3
RESEARCH METHODOLOGIES
This chapter described the research methodology with in-depth discussion
on the research design, research environment, research respondents, and
research tools. In addition, this section discussed how the researchers gathered
the necessary data that is used in the entire study.
Research Design
This study made use of quantitative research in gathering information to
determine which demographic factors affect the buying preferences of the target
market based on the marketing mix. This research utilized the descriptive method
in acquiring the needed data and information for the study. Moreover, primary
and secondary data gathering were used by the researchers. This study used the
purposive sampling method in choosing the respondents, specifically convenient
sampling. Due to the Coronavirus pandemic, the researchers opted to utilize the
online survey questionnaires in collecting and gathering the data that both
allowed the researchers and respondents to easily communicate in answering
and collecting the survey forms. The data gathered were used as a guide and
basis in formulating interpretations and conclusions. The online surveys were
given to the respondents through links that were provided on the selected social

44
media platforms such as Google forms, Facebook, and Emails. The data
obtained from the online survey were treated with descriptive statistics to come
up with analytical and accurate results.
Research Environment

Figure 3.1 Geographical Map of Metro Cebu particularly Cebu


City, Mandaue City and Lapu-Lapu City

The study was conducted in Metro Cebu particularly in Cebu City,


Mandaue City and Lapu-Lapu City. For respondents, 10 people in each mall
includes SM City and Seaside, Ayala Centre, and Metro Malls. Choosing 3 big
establishments in Cebu City, Mandaue City and Lapu-Lapu City having 10
respondents each. The researchers choose these locations because these cities
are having so many COVID-19 infected cases in Cebu and residents are more
prone to getting in the said virus. In addition, these are the industrial and
business areas here in Cebu, many establishments and businesses like malls,
restaurants, companies, condominiums, etc. are located and operating in these
locations.
Research Respondents
The respondents were selected in a purposive sampling method where in
sample members were selected in a larger population. It was based on a relevant
characteristic (e.g., age range and income bracket). The study used the
purposive sampling method because it accurately reflects the population being
studied. This process can also help for the results to be more accurate in the
sample and help the study to identify the extreme perspectives that are present
in each population group as well. The study focused on business owners and
their ages. The total number of respondents for the study is 50. These

45
respondents are from Cebu City. The respondents of the study are the incoming
business owners who are interested in protecting their stakeholders through
proposing an automatic full-body sanitation booth in their companies to fight
against the pandemic. They are the appropriate markets that the study is
targeting, because most of the companies now are focusing on the health and
the well-being of the stakeholders.
Research Tools
To provide and gather as much informative and relative evaluation,
descriptive methods were used. Respondents were asked to fill a survey that is
distributed online via. Google forms, emails and social networking websites like
Facebook. The availability of the surveys is only to those who have internet
access in their homes. The responses were collected and analyzed for the study.
The survey questions will aim at different relevant information of the relationship
between the buying preference of the consumers and the product.
Gathering of Data
This study utilized online surveys to gather primary data. The survey
contained questions about the demographics of the respondents and questions
that will help determine the marketability of SaniBooth by SaniTect in terms of its
product features, price, place and promotions with regards to the target markets’
buying preference. The data that were gathered will provide insight that will help
SaniTect improve its existing product, SaniBooth, according to the target
markets’ demand. In addition, the primary data will serve as a reference for future
product developments.
Before sending out the survey questionnaire and collecting the data, the
researchers passed a transmittal letter to the administration of University of San
Carlos – South School. The respondents also received a consent form before
taking the survey to ensure voluntary participation. After collecting the data, the
researchers kept the data for confidentiality and treatment.
Secondary data will also be collected to serve as a basis for comparison.
The secondary data comprises existing related literature and studies that is from
online journals, dissertations, and online portals that are reliable and verified. It

46
includes professional publications, literature, and as well as previous relevant
studies. The data were used to compare and contrast the results and identify
similarities and differences of the data that is collected to existing data.

CHAPTER 4
PRESENTATION, ANALYSIS, AND INTERPRETATION OF DATA
This chapter addresses the results, data analysis and interpretation of
quantitative data from the findings of the study. These were shown in the tables
and figures following the series of problems found by SaniTect in relation to the
marketability of SaniBooth in the diverse market of potential customers within the
cities of Cebu, Mandaue and Lapu-Lapu.
I. Demographic Profile of the Target Market

This section refers to the first objective of the study which is to establish
which demographic factors of the target market affect their buying preference.
This section elaborates the demographics of the respondents in this study, where
it is divided into two demographic factors: the age group that they belong to and
the Income that they earn monthly.
1.1 Respondent’s Age

Table 1. Respondent’s Group in Frequency and Percentage


table of Age Demographic.
Table 1 shows the demographic data of the respondents by age
group. This study opted to survey 25 respondents with the age bracket of Early
20’s - Early 40’s and Late 40’s - Early 60’s with the total respondents of 50 to

47
equally compare the data and came up with more realistic results. The business
owners in their early 20’s to 40’s is likely new to the industry and they are just
starting to put up their own business. They have a lot of ideas and are very
determined to achieve it. While businessmen aged in late 40’s to early 60’s have
more experience how to run and manage a business. They have so many
experiences and are much more stable in making decisions.
In line with the study conducted by Swift et al. (2013), there are social
comparisons between older and younger people with their capabilities to lead,
who's more dominant and skillful, it is essential to group and classify the
respondents according to their particular age ranges because the younger and
older generation has a different perspective and opinion about a certain issue or
making a decision. If the respondents are categorized according to their
similarities and preferences it is easier for the researchers to classify and
understand their perspectives and purchasing power to the market.
1.2 Respondent’s Monthly Revenue

Table 2. Respondent’s Group in Frequency and Percentage table


in terms of Monthly Revenue
Table 2 exhibits the profile of the respondents by monthly revenue. Among
the respondents who were surveyed, The table implicates that most of the
respondents receive a monthly revenue above P75,001. According to Blackey -
Gray (2017), business owners’ income carries due to the factors like industry,
geographic location, and experience. There is no standard fixed revenue

48
because it will depend on the profits and the performance of the business, as we
can see from the result above that most of the respondents are earning enough
money to sustain their needs.

According to Carrol (1994), consumers' consumption depends on the


expected revenue they earn. It is important to know the financial capabilities of
the target market because it can influence their purchasing behavior where those
who earn low revenue will not buy high-value products and the customers who
have a high revenue will not pick cheap products, their buying habits reflected in
their current state of income.

II. Determining the Relationship between the Buying Preference to


the Product Features and the Demographics of the Target Market

This section refers to the second objective of the study which is to identify
the significant relationship between the buying preference to the product
features, particularly in terms of durability, reliability, design, and branding of the
product to the demographic profile of the target market to the marketability of the
product SaniBooth by SaniTect. The data will be provided by order of
interpretation and analysis of the objective, namely the distribution of
frequencies, the significant relationship of the survey data between the
demographic information presented and the interpretation and analysis of the
data.
For determining the relationship of the Buying Preference and the Product
Features, the study will use the chi square statistics whereas the critical value,
the resulting amount of the degree of freedom, and significance value will serve
as the indicator for evaluating whether there is a substantial difference between
the expected results of the survey. The observed results will be determined by
the chi square value.The significance value of 0.05 sets the criterion for either
rejecting or accepting the null hypothesis, where it is more acceptable to dismiss
the alternative hypothesis if the p-value of the actual evidence approaches the
significance standard value, and otherwise if not. Below are hypothesis

49
statements for SOP2:
Ho: The features of the product have no significant relationship in
the buying preference of the target market.
Ha: The features of the product have a significant relationship in
the buying preference of the target market.
2.1 Durability

Table 3. Buying Preference in Product’s Durability.

Table 4. Significant Relationship of Age and Durability.

Table 5. Significant Relationship of Monthly Revenue and


Durability.

The table 3 shows the Buying Preference of the Target Market to the
Sanitation Booth in terms of Durability. The table 4 shows the result of the
frequency distribution of the responses which is all about the durability of the
product according to age group.The table 5 shows the result of the frequency
distribution of the responses which is all about the durability of the product
according to Monthly Revenue.
For table 3, the arithmetic mean of 4.36 and standard deviation of 13.76

50
means that most of the respondents think that it is highly significant to them. The
arithmetic mean of 4.28 and standard deviation of 11.61 interprets that the
majority of the respondents think that it is significant.
In table 4, the chi square value of 0.76 is lower than the critical value of
2.132 which means that there is no significant difference between the expected
and observed output. In contrast, the p-value of .943481 is higher than the
significance level of .05 which implies to accept the null hypothesis and reject the
alternative hypothesis. Also, the chi square of 4.28 is higher than the critical
value which indicates that there is significant difference between the expected
and observed output. Moreover, the p-value of .446623 is higher than the
significance level of .05 suggests to accept the null hypothesis and reject the
alternative hypothesis.
In table 5, the chi square value of 2.20 is higher than the critical value of
1.86 which means that there is a significant difference between the expected and
observed output. Furthermore, the p-value of .410630 is higher than the
significance level of .05 which implies to accept the null hypothesis and reject the
alternative hypothesis. In additional, the chi square of .88 is lower than the critical
value of 1.86 which indicates that there is no significant difference between the
expected and observed output. However, the p-value of .850071 is higher than
the significance level of .05 suggests to accept the null hypothesis and reject the
alternative hypothesis.
According to Mendez and Narasimhan (2004) demand for new products is
affected by its durability. The authors imply that the life-span of the product
affects the willingness to buy a unit of the product. When promoting a product
based on its durability, Cooper (2016) suggests that the life-span anticipated by
the consumers should be observed in the practice.
2.2 Reliability

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Table 6. Respondent’s Buying Preference in
Product’s Reliability.

Table 7. Significant Relationship of Age and Reliability.

Table 8. Significant Relationship of Monthly Revenue and


Reliability.

The table 6 shows the Buying Preference of the Target Market to the
SaniBooth in terms of Reliability. The table 7 shows the result of the frequency
distribution of the responses which is all about the reliability of the product
according to age group.The table 8 shows the result of the frequency distribution
of the responses which is all about the durability of the product according to
Monthly Revenue.
In table 6, the arithmetic mean of 4.40 and standard deviation of 13.06
means that most of the respondents think that it is highly significant to them that
the sanitation booth is suitable in crowded places. The arithmetic mean of 4.58
and standard deviation of 15.18 interprets that the majority of the respondents
think that it is highly significant that the booth is safe for all ages.
In table 7, the chi square value of 3.36 is higher than the critical value of
2.132 which means that there is a significant difference between the expected
and observed output. Subsequently, the p-value of .146385 is higher than the

52
significance level of .05 which implies to accept the null hypothesis and reject the
alternative hypothesis. The chi square of 0.77 is lower than the critical value of
2.132 which indicates that there is no significant difference between the expected
and observed output. But, the p-value of .961763 is higher than the significance
level of .05 suggests to accept the null hypothesis and reject the alternative
hypothesis.
In table 8, the chi square value of 2.15 is higher than the critical value of
1.86 which means that there is a significant difference between the expected and
observed output. Wherefore, the p-value of .353173 is higher than the
significance level of .05 which implies to accept the null hypothesis and reject the
alternative hypothesis. The chi square of .61 is lower than the critical value of
1.86 which indicates that there is no significant difference between the expected
and observed output. However, the p-value of .660297 is higher than the
significance level of .05 suggest to accept the null hypothesis and reject the
alternative hypothesis.
According to the study of Mrugalska and Tytyk in 2015, products must be
designed and manufactured at a high level of quality, and must be reliable and
safe to use from basic components to composite parts. It can be assumed,
therefore, that reliability is the extension of the consistency of the term over time
and can be described as the time period over which a product meets the quality
standards for the expected use period".
2.3 Design

Table 9. Respondent’s Buying Preference in Product’s Design.

53
Table 10. Significant Relationship of Age and Design

Table 11. Significant Relationship of Monthly Revenue and


Design.

The table 9 shows the Buying Preference of the Target Market to the
SaniBooth in terms of Design. The table 10 shows the result of the frequency
distribution of the responses which is all about the durability of the product
according to age group.The table 11 shows the result of the frequency
distribution of the responses which is all about the durability of the product
according to Monthly Revenue.
In table 13, the arithmetic mean of 4.54 and standard deviation of 13.37
means that most of the respondents think that it is highly significant to them that
the sanitation booth is appealing to both users and to the people around them.
The arithmetic mean of 4.24 and standard deviation of 11.88 interprets that the
majority of the respondent think that it is highly significant that the booth is
designed to sanitize the whole body.
In table 10, the chi square value of 0.12 is lower than the critical value of
2.132 which means that there is no significant difference between the expected
and observed output. On the other hand, the p-value of .970152 is higher than
the significance level of .05 which implies to accept the null hypothesis and reject
the alternative hypothesis. The chi square of 1.53 is lower than the critical value
of 2.132 which indicates that there is no significant difference between the
expected and observed output. Contrarily, the p-value of .838659 is higher than
the significance level of .05 suggests to accept the null hypothesis and reject the
alternative hypothesis.

54
In table 11, the chi square value of 3.28 is higher than the critical value of
1.86 which means that there is significant difference between the expected and
observed output. Accordingly, the p-value of .418449 is higher than the
significance level of .05 which implies to accept the null hypothesis and reject the
alternative hypothesis. The chi square of 2.10 is higher than the critical value of
1.86 which indicates that there is significant difference between the expected and
observed output. Moreover, the p-value of .803850 is higher than the significance
level of .05 suggests to accept the null hypothesis and reject the alternative
hypothesis.
Flexibility in product design may increase the likelihood of prolonged
usage of the product. According to Cooper (2016), products are discarded not
just because of the deterioration of the good but also because of some factors
such as technological advancement, fashion or changes in personal
circumstance.

2.4 Branding

Table 12. Respondent’s Buying Preference in Product’s


Branding.

Table 13. Significant Relationship of Age and Branding.

55
Table 14. Significant Relationship of Monthly Revenue and
Branding

The table 12 shows the Buying Preference of the Target Market to the
SaniBooth in terms of Branding. The table 13 shows the result of the frequency
distribution of the responses which is all about the durability of the product
according to age group.The table 14 shows the result of the frequency
distribution of the responses which is all about the durability of the product
according to Monthly Revenue.
In table 3, the arithmetic mean of 4 and standard deviation of 9.34 means
that most of the respondents think that it is significant to them. he arithmetic
mean of 3.72 and standard deviation of 9.01 interprets that the majority of the
respondents think that it is significant that the booth is distinguishable if
compared to other companies.
In table 13, the chi square value of 4.88 is higher than the critical value of
2.132 which means that there is significant difference between the expected and
observed output. Hence, the p-value of .539738 is higher than the significance
level of .05 which implies to accept the null hypothesis and reject the alternative
hypothesis. The chi square of 2.14 is higher than the critical value of 2.132 which
indicates that there is significant difference between the expected and observed
output. Thus, the p-value of .898647 is higher than the significance level of .05
suggests to accept the null hypothesis and reject the alternative hypothesis.
In table 14, the chi square value of 5.61 is higher than the critical value of
1.86 which means that there is significant difference between the expected and
observed output. However, the p-value of .419174 is higher than the significance
level of .05 which implies to accept the null hypothesis and reject the alternative
hypothesis. The chi square of 4.55 is higher than the critical value of 1.86 which
indicates that there is significant difference between the expected and observed

56
output. However, the p-value of .551969 is higher than the significance level
of .05 indicates to accept the null hypothesis and reject the alternative
hypothesis.
Prestige brands in other industries penetrate the market by appealing to
people’s aspirations and values (Cooper, 2016). In addition, rare products with
unique branding are often sought by consumers.
III. Distinguishing the Price Perception of the Market to the product
SaniBooth based on its Quality

This portion refers to the third objective of the study which is to distinguish
the price perception of the market to the product SaniBooth based on its quality.
The respondents were asked to select the prices they think that are cheap,
bargain, premium, and expensive for the product. Price is known as one of the
important factors in buying and selling products because individuals live in a
world that is full and driven by value. There will always be a potential customer
with interest as long as the quality of the product is satisfactory, reliable, and at a
reasonable price.

3.1 Ridiculously Cheap Price

Table 15. Respondent’s Preferred Ridiculously Cheap Price

Table 15 illustrates the respondents' perspective in terms of determining


the acceptable price for a ridiculously cheap price range for the product
SaniBooth without compromising its quality.

57
The table shows that the majority of the respondents preferred the price
range of P50,000 to P70,000, where 41 out of 50 (82%) selected this price range
set for the category ridiculously cheap price. The price can affect the buying
preference of the respondents, where if a price of a product is less than the
others then the consumers will buy the products because it is much cheaper and
have this thought that they can save more money, with the understanding that
the quality of the product is not that great but as long as it can give satisfaction
and serve its purpose.

According to the Household Expenditure Survey (HES) conducted by the


Census and Statistics Department, the consumer thinks about various factors
before purchasing the product to have good items without overspending. The
customers tend to shop for goods in the market with a lower price that will equal
the level of enjoyment and satisfaction that can be attained within a smaller
budget. If the price of a particular item rises, most consumers will substitute the
item with other cheaper and acceptable choices. This means that price serves as
a powerful indicator for the consumer to decide whether to purchase the product
with a set of price limits in mind.

3.2 Bargain Price

Table 16. Respondent’s Preferred Bargain Price

Table 16 depicts the respondents' perspective in terms of determining the

58
price range that is suitable for a bargain price for the product of SaniTect.

The data shows that the respondents have a different stance in choosing
the preferred price range for bargain price, most of the target market of SaniTect
selected the price range of P50,000 to P70,000 with just 1 respondent interval to
the 23 respondents who chose the price range of P70,001 to P90,000. They
have dissimilar thoughts about the price range but the set of prices does not
have that large gap but in the end, P50,000 to P70,000 is a price that they want
like in a ridiculously cheap price range.

This agrees with the study conducted by Jindal and Newberry (2019) that
said bargaining price strategy is more profitable than fixed pricing because the
average consumer will negotiate prices where they can get discount costs that
are relatively low as compared to the retailer’s markup. It is also noted by Shirai
(2016), that the consumers usually prefer to obtain products at an average cost,
not cheap or expensive, this appeal seems to meet consumers’ needs and
resonate with them. This confirms why the majority of the respondents prefer
buying cheaper products with good quality.

3.3 Premium Price

Table 17. Respondent’s Preferred Premium Price

Table 17 presents the respondents' buying preference in terms of


determining the price range for a premium price that is applicable for the product
SaniBooth by SaniTect.

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According to the Journal of Consumer Research (2013), a high price
indicates either bad value or good quality, whereas low price indicates either
good value or poor quality. Consumers who are influenced by price are also
concerned about product quality and durability, suggesting their preference
towards purchasing high-quality products at an equitable price rather than
searching for cheaper products.

In addition, the use of premium prices among brands has become very
beneficial for the production of unique and differentiated goods on the market
among established homogeneous products. For marketing research and global
marketing, this marketing method has gained critical significance. Through the
use of premium prices to draw higher income consumers have become an
effective marketing method (Ashraf, Li & Mehmood, 2017).

3.4 Ridiculously Expensive Price

Table 18. Respondent’s Preferred Ridiculously Expensive


Price
Table 18 conveys the respondents' preference in terms of determining the
appropriate price range of the category ridiculously expensive price for the
product SaniBooth.
The results in the table are in line with the study of McCormick (2015),
wherein the buyers are willing to pay more if they believe that a higher price
means higher quality. Furthermore, if the customer values the unique features
and attributes of the product, they would be willing to buy it to the extent of their

60
capabilities and prioritize the product before others in the marketplace.
IV. Determining which is the Most Preferred Location in terms of
accessibility of the product based on the Buying Preference of
the Target Market.
This portion refers to the fourth objective of the study which is to show the
most preferred location in terms of accessibility of the product based on the
buying preference of the target market. The location of the store is one of the
vital points in a business since this is one way that the consumers can visit the
office and a place where the business and customers can interact with each
other. Therefore, the respondents were asked to select their preferred location
between a physical and online store when they will purchase the product for the
business to assess where the best place to sell the SaniBooth is.
4.1 Preferred Location

Table 19. Respondent’s Preferred Location.

Table 19 highlights the frequency distribution percentage of respondents


who prefer physical store or online store as mode accessibility to buy the
product. This implies that the target market of SaniTect preferred the physical
store over the online store when buying the company product. There is no
difference in preference of the respondents in their early 20’s to early 40’s and
late 40’s to early 60’s. It can allow the customers to experience the product in
real-time, on how it works and its functionality, and also they can inspect the
quality of the product in person.

According to Clark (2020), customers are much more comfortable


shopping in a physical store over an online store because clients can see the
products, which helps in purchasing decisions of the customer where they have
an option to try the product first and experience it. Furthermore, the physical

61
store offers a sense of security to customers and a unique shopping experience
that cannot be perceived in online stores.

4.2 Respondents who prefer Online Store

Table 20. Respondent’s Preferred Online Store

A follow-up question was answered by the respondents who chose an


online platform as their mode of accessibility in purchasing the product. This
means that the respondents who choose an online store want Shopee as the
online platform that makes them comfortable in purchasing the product. Shopee
is frequently used by Filipinos to purchase online products and it is easier for
them to navigate it.

As stated in Doofinder, the advantage of an online store is that it can


attract new customers all over the world, it is not limited. It doesn’t require that
much effort to buy a product and the business can easily set it up at a lower cost.
After adding the product to the cart, the customer will not worry anymore about
how to deliver or ship the product at their home.

V. Identifying which Promotional Mix is the Most Effective in enticing


the Target Market based on their Buying Preference

This portion refers to the fifth objective of the study which is to indicate which
promotional mix is the most effective in enticing the target market based on their

62
buying preference. Traditional, non-traditional, and digital media are the various
media targets. Along with its data analysis and interpretation for guidance,
frequency distribution tables are shown. With the data from the fifth objective, the
basic percentage formula is also applied.
Moreover, to measure how often different forms of promotion media catch
their attention from Never to Always a Likert scale was used. The numbers are
expressed in the frequency number below: 1-strongly disagree, 2-disagree, 3-
neutral, 4-agree, and 5-strongly agree.
5.1 Traditional Marketing

Table 21. Respondent’s Effectiveness Level in Different


Traditional Marketing.

Table 22. Respondent’s Effectiveness Level in Different Non-


Traditional Marketing.

Table 23. Respondent’s Effectiveness Level in Different Digital


Marketing.

The table 21 depicts the different effectiveness level in enticing through


traditional media. It clearly shows that the majority of the respondents are

63
neutrally enticed in newspapers, magazines, flyers and brochures, and posters.
However in Television, the majority strongly agree that they are enticed by it. The
table 22 exhibits the different non-traditional media that enticed the target
customer. It clearly indicates that the majority of the respondents strongly agree
with promoting the products through promotional events.The table 23 shows the
different digital media that the SaniTect promotes the product to. It interprets that
the majority of the respondents strongly agree that they are enticed through
advertisement in Facebook.
According to Arcangel (2017), despite the internet users in the country,
television remains the Filipino go-to media outlet for consuming content. In a
2016 survey conducted by media intelligence company Kantar Media, 96.6% of
Filipinos watch TV every day, compared to 91.2% in 2014. In front of their TV
sets, Filipinos have spent more time, devoting 3.7 hours to watch their favorite
programs.
A comparatively new promotional technique is known to be event
marketing. The active involvement of target audiences in the contact process is a
function of event marketing. It helps to create a brand identity, generating leads,
market value, and greater avenues (Dregner et. al, 2008).
Wiese et. al (2020) stated that the use of social networks is a global
phenomenon, with Facebook taking the top spot as the preferred service for
social networks. In developed and emerging economies, the use of Facebook is
enormous, but the tremendous marketing power of Facebook's full range of
advertising tools is huge. Thus, with a monthly user of 2.33 billion clearly
indicates an opportunity for businesses to effectively promote the product to its
target market through the use of different tools in this social media.

64
Chapter 5

SUMMARY OF FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS


This section presents the summary of the findings, conclusion, and

recommendations based on the data gathered from the survey questionnaire.

The study aims to determine the factors that may affect the product availment of

the addressable market of the proposed business

1. To establish how/which demographic factors of the target market

affect their buying preference/behavior, namely the:

1.1 Age

The researchers found that there are fifty percent (50.00%) of the total

respondents range from early 20’s to early 40’s. There are also fifty

percent (50.00%) of the total respondents range from late 40’s to early

60’s. This includes that the respondents have an equal number of

participants, 50% from the early 20’s to early 40’s and 50% from the

late 40’s to early 60’s.

1.2 Monthly Income

Based from the data collected, the researchers have found out that

there are forty-six percent (46.00%) of the respondents which has a

monthly income of Php 75, 001 and above, followed by a thirty percent

65
(30.00%) of the respondents who has a monthly income of Php 35,000

and below, and lastly twenty-four percent (24.00%) of the respondents

who has a range monthly income of Php 35,001 to Php 75,000. This

concludes that the majority of the respondents have a monthly income

of Php 75,001 and above.

1. To identify the significant relationship between the buying

preference to the product features and the demographics of the target

market to the marketability of the product.

2.1 Durability

Based on the data gathered, the first statement that Sanitation Booth

will last for more than a year has been classified as “Highly Significant”

having a total of fifty (50) respondents resulting to 4.36 as the

arithmetic mean and 13.76 as the standard deviation. The result to the

significance of age to the statement using the Chi-Square Test derives

to a value of 0.76 that implies the null hypothesis has been accepted

and the alternative hypothesis has been rejected. The Chi-Square Test

value for the significance of monthly income to the first statement is

2.20 resulting to accept the null hypothesis and not the alternative

hypothesis. The second statement that Sanitation Booth can withstand

pressure or damage is being classified as “Highly Significant” resulting

in an arithmetic mean of 4.28 and a standard deviation of 11.61 based

on the answers collated out of the fifty (50) respondents. The

relationship between the significance of age and monthly income to the

66
second statement shows that the null hypothesis has been accepted

having a Chi-Square Test value of 4.28 and 0.88 respectively. 

2.2 Reliability

The researchers found that the product is suitable for crowded places

has an arithmetic mean of 4.40 and a standard deviation of 13.06 out

of the fifty (50) respondents resulting in a classification of “Highly

Significant”. The second statement that the booth is safe to use for all

ages has derived to an arithmetic mean of 4.58 and a standard

deviation of 15.18 having a classification of “Highly Significant”. The

Chi-Square Test value of age for the two statements are 3.36 and

0.77, and the value for monthly income for the two statements are 2.15

and 0.61 respectively. The relationship between the significance of age

and monthly income to the two statements concludes that the null

hypothesis has been accepted and rejected the alternative hypothesis. 

2.3 Design

The researchers found that the arithmetic mean and standard deviation

of the first statement that sanitation boot is appealing to both users and

to the people around them is 4.54 and 13.37 respectively, giving this

statement a classification of “Highly Significant”. The Chi-Square Test

value of the significance of age to the statement results to 0.12 and the

value result of the significance of monthly income to the statement is

3.28 resulting in a conclusion that the null hypothesis has been

accepted. The second statement that the sanitation booth is designed

67
to sanitize the whole body derives to an arithmetic mean of 4.24 and a

standard deviation of 11.88 classifying the statement to be “Highly

Significant”. The Chi-Square Test value of the significance of age and

monthly income to the second statement 1.53 and 2.10 respectively,

resulting in accepting the null hypothesis and rejecting the alternative

hypothesis.

2.4 Branding

Based on table 12, the first statement that the branding gives off a

sense of security has derived an arithmetic mean of 4 and standard

deviation of 9.34 which classifies the statement as “Highly Significant”

to them. The second statement that the branding of the product is

distinguishable if compared to other companies attains a 3.72

arithmetic mean and 9.01 standard deviation classifying the statement

also “Highly Significant”. The Chi-Square Test of the significance of

age to the two statements results to a value of 4.88 and 2.14

respectively, and the significance of monthly income to the two

statements has a Chi-Square value of 5.61 and 4.55 concluding that

the alternative hypothesis has been rejected and the null hypothesis

has been accepted.

1. To distinguish the relationship between price and demand based on

the buying preference of the target market.

3.1 Ridiculously Cheap Price

Based on the data collected from the respondents from ages early 20’s

68
to early 40’s, eight-eight percent (88.00%) preferred the price range

from Php 50,000 to Php 70,000, followed by eight percent (8.00%)

preferred the range from Php 70,001 to Php 90,000, and four percent

(4%) preferred the price range from Php 90,001 to Php 100,000. On

the other hand, the respondents from ages late 40’s to early 60’s

preferred the price range from Php 50,000 to Php 70,000 earning a

seventy-six percent (76.00%), followed by twenty percent (20.00%) of

the respondents preferred a price range from Php 70,001 to Php

90,000, and lastly four percent (4.00%) of the respondents preferred a

price range from Php 90,001 to Php 100,000. This implies that most of

the respondents prefer the range price of Php 50,000 to Php 70,000.

This perceives SaniTect’s SaniBooth to be of quality with a reasonable

price.

3.2 Bargain Price

Based on the data gathered from the respondents from ages early 20’s

to early 40’s, fifty-six percent (56.00%) of the respondents preferred

the bargain price of Php 50,000 to Php 70,000, followed by forty-four

percent (44.00%) of the respondents preferred the bargain price of Php

70,001 to Php 90,000, and lastly zero percent (0.00%) chose the

bargain price of Php 90, 001 to Php 100,000. The data gathered from

the respondents from ages late 40’s to early 60’s chose Php 70,001 to

Php 90,000 as the most preferred bargain price earning forty-eight

percent (48.00%) of the total respondents, followed by the bargain

69
price range of Php 50,000 to Php 70,000 earning a forty percent

(40.00%) of the total respondents, and lastly twelve percent (12.00%)

of the total respondents preferred the bargain price of Php 90,001 to

Php 100,000. 

3.3 Premium Price

The researchers found that in the ages early 20’s to early 40’s that

fifty-two percent (52.00%) of the total respondents preferred the

premium price of Php 110,000 to Php 130,000, followed by a thirty-two

percent (32.00%) of the total respondents chose a premium price of

Php 130,001 to Php 150,000 and the remaining sixteen percent

(16.00%) chose the premium price from Php 150,001 to Php 170,000.

From the late 40’s to early 60’s respondents, sixty-four percent

(64.00%) preferred the premium price of Php 110,000 to Php 130,000,

followed by twenty-eight percent (28.00%) of the total respondents

preferred a premium price of Php 130,001 to Php 150,000 and the

remaining eight percent (8.00%) preferred the premium price of Php

150,001 to Php 170,000. This concludes that most of the total

respondents from ages early 20’s to early 60’s preferred a premium

price of Php 110,000 to Php 130,000.

3.4 Ridiculously Expensive Price

The researchers found out in the early 20’s to early 40’s respondents,

sixty percent (60.00%) preferred a ridiculously expensive price ranging

from Php 170,001 to Php 200,000, followed by a thirty-two percent

70
(32.00%) of the total respondents chose Php 130,001 to Php 150,000

as the expensive price and the remaining eight percent (8.00%) chose

an expensive price ranging from Php 150,001 to Php 170,000. On the

other hand, eighty-four percent (84.00%) of the total respondents from

the late 40’s to early 60’s preferred an expensive price of Php 170,000

to Php 200,000, followed by a twelve percent (12.00%) of the total

respondents preferred Php 150,001 to Php 170,000 as the expensive

price and the remaining four percent (4.00%) preferred Php 130,001 to

Php 150,000. 

1. To show which is the most preferred location in terms of

accessibility of the product based on the buying preference of the target

market

4.1 Physical store (Cebu Business Center)

It is shown in Table 19 that out of the fifty (50) respondents, the market

prefers the physical store which is located in Cebu Business Center

having a frequency of 44 and a total percentage of 88%. Only a few of

the market would prefer online store locations having a frequency of 6

and a percentage of 44% since business owners want to be exposed

to the product letting them have their freedom to choose their preferred

likings. 

4.2 Online store

The remaining respondents who choose online stores as their

preferred location, the results of which platform respondents are most

71
preferred are different from each other. The market prefers Shopee as

their first choice having a frequency of 3 and percentage of 50%, then

followed by Facebook Shops, Lazada, and Amazon having a

frequency of 1 and a percentage of 16.67%, and the market does not

opt for Instagram and Twitter shops since some does not have an

account which they highly discourage.

1. To indicate which among the promotional mix is the most effective in

enticing the target market based on their buying preference.

5.1 Tradition

Based on Table 21: Respondent’s Effectiveness Level in Different

Traditional Marketing, the researchers gathered that Television is the

most preferred channel for marketing earning the most answer with a

frequency of 20 and a percentage of 40%; followed by Flyers and

brochures are classified as Neutral having 26 as the frequency and

52% as the percentage; Posters having a frequency of 23 and

percentage of 46%; Newspapers is classified as Neutral having a

frequency of 21 and percentage of 42%; magazines is classified as

Neutral having 19 as frequency and 38% as the percentage.

5.2 Non-Tradition

Based on Table 22: Respondent’s Effectiveness Level in Non-Different

Traditional Marketing, the market disagrees with salesperson as one of

the non-traditional marketing for the company having fourteen (14)

respondents answered resulting in 28% out of 100%. On the other

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hand, the respondents’ response comes to a tie with agree and

strongly agree in promotional events as a non-traditional marketing in

the business.

5.3 Digital

In terms of Digital Marketing, the researchers concluded that social

media specifically Facebook is being highly recommended by the

respondents having a frequency of 20 and a percentage of 40%.

Instagram digital marketing has a frequency of 18 and a percentage of

36% having the market strongly agree to this social media, followed by

websites that is classified as agree having a frequency of 17 and a

percentage of 34%, and the least favorable to the market is Twitter

having 19 respondents and a percentage of 38% in the classification of

strongly disagree.

Conclusion

Based on the findings from the gathered and presented data, it has been

concluded that the demographic factors, age and monthly income, affects the

buying preference as to how many years they have spent on their businesses

making decisions that are more stable for the business. The null hypothesis of

the relationship between the product features and the demographics in terms of

durability, reliability, design, and branding has been accepted as based on the

Chi-Square Test having a result of a highly significant classification has been

accepted. In terms of price, the market prefers having the sanitation booth in a

price range of Php50,000 - Php70,000, considering that most of them opt for the

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business to have the physical store which is located in Cebu Business Center

and if online store is being established, the market prefers Shoppee and

Facebook as a media for purchasing. Television is being preferred by the market

since most or all of them watch television having the knowledge as to what are

the product’s features, and promotional events for advertising and promoting the

product regarding its functionalities. Therefore, having the knowledge as to what

the target market prefers and wants is a big help to Sanitect to establish a good

strategy to entice the market in buying the product, SaniBooth.

Recommendations

1. For product accessibility, it is recommended for SaniTect to establish a

Physical store to sell SaniBooth since it is more preferred by the target

market. If the company decides to sell online, the platform that is suitable

for SaniBooth is Shopee based on the responses on the survey.

2. For product promotion, it is optimal for SaniTect to advertise the products

through television and websites since it is selected by the target

consumers. Once the company decides to promote their product through

non-traditional matters, setting up events will be suitable based on the

survey.

3. In pricing the product, the best option for SaniTect to price the products is

to price it at between 50,000 pesos to 70,000 pesos because of the

demand of the market.

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4. In product features, the recommended choice for SaniTect is to focus on

the reliability of the product which will be able to sanitize through crowded

places

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2. Macro Environment Analysis

Political, Economic, Social, Technological Analysis

Political

Economic

Social

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Technological

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3. Industry Analysis

Demand-Supply Analysis
Industry Background
In each part of the business world, may it be from the business, interior or
outside administration of the organization, the supply and demand analysis has
assumed an essential function in it. According to Whelan and Msefer (1996),
economic theory presents a model of supply and demand that clarifies the
balance of a solitary item market. Economists hold the view that price decides
both the supply and demand. Demand is the rate at which customers need to
purchase an item while supply is the eagerness and capacity to supply products
decide the seller’s activities.
SaniTect is a sanitation manufacturing company that will be located in
Cebu Business Center as our main office. It aims to provide convenience and
quality automatic sanitation booths that is more affordable compared to other
sanitation manufacturing businesses, and at the same time, it also aims to raise
awareness on how we can protect stakeholders against the pandemic. This type
of business takes part in the manufacturing industry, which is based on selling
units. This industry includes businesses that make products like shoes, foods,
and etc.
In the current world today, the human Covid ailment (COVID-19) is
currently a worldwide pandemic. Social distancing, hand cleanliness and the
utilization of individual defensive gear rule the current battle against COVID-19.
In developing nations, the requirement for clean water arrangement, sterilization
and cleanliness has just gotten limited attention (Willis, 2020). The sanitation
manufacturing industry has gone through rapid changes that grow together with
the demands of the market. Aside from that, some of the trends that is currently
present in the manufacturing industry include the business’ opportunity to divulge
with the internet, the ever-changing way of life of the individuals, and the usage
of laws that empower stake holders’ protection such as the Health and Safety
Law.
With the business' development and improvement, there are numerous

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variables that cause the business to either rise or fall inside a business year.
These components incorporate supply and demand, government arrangements,
income, and geological area. For each working industry, the supply from
providers and demands from shoppers are perhaps the best factor for an industry
to be working gainfully. At the point when supplies surpass then accept there will
be surpluses. At the point when supplies are lacking, it brings about shortages. In
this way, organizations ought to consistently take a stab at the balance of
gracefully and request.
One of the variables that can influence supply and demand is the
advancement of technology. As innovation improves, organizations will have the
option to deliver more merchandise at a less expensive price. This prompts an
expansion of profitability. According to (Woodruff, 2019), technological advances
that improve creation productivity creativity creates the expense of creation goes
down, and customers will request a greater amount of the item at lower costs.
PCs, TVs and photographic hardware are genuine instances of the impacts of
technology.
Another factor that could affect the supply and demand is income of the
target market. Philippines is one of the countries that has an improvement in the
economy. The tax-to-GDP ratio in the Philippines increased by 0.6 percentage
points from 17.6% in 2017 to 18.2% in 2018. From 2007 to 2018, the tax-to-GDP
ratio in the Philippines increased by 1.9 percentage points from 16.3% to 18.2%.
The highest tax-to GDP ratio in this period was 18.2% in 2018, and the lowest
14.8% in 2010 (OCEED, 2020). It helps the company to assess the demand of
the product.
Another significant factor that ought to be considered is the government
approaches. This factor is the most urgent and unexpected on account of how
the government holds the majority of the ability to all that may occur inside the
economy and assumes the most fundamental job. These said strategies ought to
be good for the business' development yet additionally useful for the customers
inside it. Regarding that, the sanitation manufacturing business is at a preferred
position that the company should be aware around the consumers like the Health

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and Safety Law. Besides that, consider that the business might be adversely
influenced if numerous legislators will mishandle their forces.
An extra factor that impacts this industry is the business' geographical
area. It is realized that a business ought to consistently respect the spot or region
that the business will be found since this will influence the buyer's inclination.
Shopper inclination may differ since, in such a case that this territory is
excessively far from your objective market, most would locate an elective that is
nearer to them to get the products or services that they need.
Thinking about this information, the study has presumed that the current
sanitation manufacturing industry is a shortage, but is expected to shift to a
surplus later on once the pandemic is gone. It is essential to take note of that due
to the pandemic most stores had to be close. Furthermore, due to the COVID-19
pandemic, individuals are terrified to go outside because of the widespread
infection. That is why the demand of sanitation booths is high in order to protect
stakeholders and also to bring back jobs of the employees even in the midst of
the pandemic.
In any case, the most important thing that businesses have to do is to
focus and care of the well-being of their stakeholders which includes customers
and their employees.
Supply and Demand Determinants
The spreading of the corona virus across the world has a significant
impact on the disinfectant industry. The pandemic disrupts economies across the
globe which in particular on the relative importance of the forces working on
supply and demand (Balleer, et. al. 2020). The increasing demand for sanitizers
and disinfectants as a preventive measure against COVID-19 has resulted in
changing the dynamic of the market because these products become an
essential product to a large number of people to protect and disinfect them from
being not infected with the virus.
B.1 Demand Determinants
The market demand has surged exponentially, and even if the impact of
Covid-19 has lessened, it will still face a steady demand from the market. As this

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demand is rising due to the increase of the number of people buying these
products, it will serve as an opportunity for Sanitect to enter this growing industry
and the competition of the market is not that high due to the fact, that it is not
relevant and profitable when this pandemic didn’t happen.
Consumer’s Income
The income effect is a part of consumer choice theory which relates
preferences to consumption expenditures and consumer demand curves that
expresses how changes in relative market prices and incomes impact
consumption patterns for consumer goods and services. A person wanting to buy
the product having a low source of income cannot purchase the product but a
person wanting to buy the product having a good source of income or a high
income can purchase the product but it only depends on the buying preference
and behaviour of a person and this impact results in a rise or fall in demand for
the good. In the demand curve, this leads to a leftward shift. Hence, along with
the problem of Covid-19 that started from 15th of  March 2020 up until now, the
Filipino people have been locked down, which triggered a decline in the source of
people's income despite the cash assistance program of the Philippine
Government (Delerio, 2020). The lockdown also caused a high unemployment
rates, the sanitation industry is one of the most affected industries, leading to a
decrease in income for most Filipino citizens (Cahiles-Magkilat, 2020).
The demand curve of the Prices of Consumer’s Income cause a decrease

Prices of Related Goods (substitutes)


Substitute goods are two alternative goods that could be of the same
purpose. When the price of a substitute good decreases the quantity demanded

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for that good increases, but the demand for the good that it is being substituted
for decreases. The prices of substitute goods affect the demand of the goods of
the company because as a wise consumer, they would take into consideration
the price of the goods whether choosing the expensive price or the cheaper price
that has the same use as the expensive one. But SaniTect assures the
consumers that the price is at its reasonable value because it has feature that is
an advantage to the business that other competitors do not have.
The demand curve of the Prices of Related Goods (substitutes) cause a
decrease

Buyers’ Preferences
The business is only starting and the company's target businesses
undoubtedly has its way when it comes to ensuring the safeness of its customers
when visiting their establishments. For this sole reason alone, the demand curve
for SaniTect will change considerably because customers are not yet familiar
with the brand. One way to raise the demand for the commodity is by efficient
marketing of the organization. In this way, the target companies can realize the
advantages of using the SaniBooth in running their business in order to cope up
with the new normal. Hence, contributes to a rise in production, which leads to a
change to the right of the demand curve.
The demand curve of the Buyer’s Preference cause an increase

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The Number of Buyers
The number of buyers willing and able to but a good affect the overall demand. It
has a relatively straightforward relation, more buyers more demand and fewer
buyers less demand. Since we are in the pandemic as of this moment,
disinfectant is on high demand right now resulting to an increase in demand in
the sanitation industry.
The demand curve of the Number of Buyers cause an increase.

External Condition
The product SaniBooth cannot do its purpose without the mixture or the
solution that would disinfect the person. SaniTect ensures that the solution used
in the booth cannot harm the person externally and does not produce problem
and affect the environment. Goodway Technologies is one of those companies
that produce and build a machine that sprays an alcohol-infused mist to sanitize
surfaces. Before this company was just a tiny business, catering mostly their
products to industrial bakeries or restaurants that need to constantly clean

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surfaces, equipment, and tools. Now, as the Covid-19 pandemic starts to spread
around the globe, everyone wants to buy it because it became essential to fight
this virus and affect the company sales to increase rapidly as orders are kept on
coming. The company is expecting to gain at least $250 million to $300 million
this year (Reuters, 2020). The demand for these products rise, it can give a
break for SaniTect to expand the business and manufactured a large amount of
these products as the supply still not sufficient to the demand of its buyers.
The demand curve of the External Condition cause an increase

B.2 Supply Determinants


The supply of these products skyrocketed, and because of these,
manufacturers are starting their production in large quantities to meet the needs
of the consumers. Due to this, many supply determinants have been affected –
the cost of production, price of other related products, the number of sellers,
technology, and external conditions.
The Costs of Production
According to a report by Reports and Data, the global Disinfectant
Products market is forecasted to reach USD 30.11 Billion by 2027. This recent
outbreak of the virus has led organizations to understand the necessity for
healthcare facility cleanliness and disinfection and because of this, spending on
healthcare products and machines is rising steadily. In 2017, it was USD 7.8
trillion or about 10% of GDP, and USD 1,080 per capita are being developed with
the help of advancement in technology to cater the challenging market growth
(Globe Newswire). Because of this pandemic, many producers enter the market

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that has been a direct effect, in SaniTect, on the amount of a product that
producers are willing and able to sell. Having less competition gives the company
an advantage to have a bigger market share with a larger supply. But
unfortunately, since we are in the midst of this pandemic, SaniTect has more
competition that results to a reduction in supply.
The supply curve of the Costs of Production cause a decrease

Prices of Other Related Products


Supply is also based on prices of other goods that use the same
resources for the production. A change in the price of complementary good or
complementary-in-production induces sellers to supply more or less of both
goods, and a change in price of substitute goods or substitute-in-production
induces sellers to produce more of one good less of another. An increase of
complementary and substitute goods in the SaniTect company sells the good at
an expensive reasonable price.
The supply curve of the Prices of Other Related Products cause an
increase

The Number of Sellers

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Number of sellers also affects the supply determinant of the company’s
business because an increase in number of sellers in the market of disinfectant
industry, which is currently happening, supply of the good increases resulting to a
rightward shift of the supply curve. We need to take into consideration that the
number of sellers is also important when it comes to the competition and market
control. Market control depends on the number of competitors but since the
industry is on demand right now. The number of sellers is rapidly increasing that
means less market control on the company resulting to a more efficient
production of the product. Owing to the rise in the number of distributors and
competitors, SaniTect will have to use innovative marketing techniques to
encourage big companies to take advantage of the products of the company
rather than those of its competitors.
The supply curve of the Number of Sellers cause an increase

Technology
Technology is changing that alters the combination of inputs or the type of
inputs required in the production process. Since we are in the 21 st century,
technology used in the company is already advanced means that it would be an
advantage to have a fewer cost input resulting to an increase of profit to the
company. SaniTect is a vulnerable entity that is at the whim of external condition
on the environmental factor.
The supply curve of the Technology cause an increase

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External Conditions
The company’s stability and profitability are interdependent on its ability to
quickly identify and respond to changes in the external environment. Change is
inevitable and having the flexibility to deal with unexpected market mutations can
mean the difference between survival and extinction or an organization
(ClearPoint Strategy). SaniTect takes precautions in the production of the
product and supply chain that would not affect the environment. Assessing how
the company’s supply chain would be fast and efficient without disrupting or be
the cause for environmental damage.
The supply curve of the External Conditions cause an increase

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Competitive Analysis

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4. STP

Segmentation

Based on the geographical status of the business consumers, they tend to


be within the big cities of Cebu, Manila, Mandaluyong, Cavite, Quezon, Pasay,
Muntinlupa, Cagayan De Oro, Makati, Davao, Paranaque and Iloilo, respectively.
This refers to how these consumers do their business, which is

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done in one’s workplace. The places are known to be full of buildings and high
establishments since these are highly crowded.

Demographic Segmentation

On the next segmentation, the Demographic, the common age groups that
would purchase the products are from early and middle adulthood which is
around ages 20 – 45 years old. The gender is not considered since all types of
gender can buy this type of product. The annual company revenue is at least
500, 000 pesos and the number of its employees is 100 and above. SaniTect
Company can offer products to this type of consumers since they are usually
crowded and highly visited by different people. The average years of how long
the businesses operated is 1, where this ensures that the business can last for
another years and is stable to become B2B customers of the SaniTect Company.

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Psychographic Segmentation

Based on the psychographic segmentation, the traits considered are being


prudent. Most of these consumers choose the safest, or near to that criteria, in
buying such products that could greatly help them in their business. The belief is,
safeness is important since the big problem today is the deadly virus. The values
taken into consideration are safety and protection. The consumers like to go for
the health security of people who will visit such crowded and open
establishments. Attitudes that they usually have are being cautious, this is related
in avoiding being infected with the said virus. Their awareness of competitors is
low, considering that this is the first product that will be launch in the Philippines.

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Behavioral Segmentation

When it comes to the behavioral segmentation, the purchasing behavior is


“I need it” type of behavior. Most of the business use to ensure that the people
who will visit their establishments are negative from being infected by the virus.
Their timing towards buying products from the business is recurring – business
occasions where the businesses repeatedly buy the product over a period of time
for the health security of their business area. In this circumstance, it is no
question that their usage rate pertaining to using such products is heavy, which
means that the business use products alternative to that full body sanitation as
part of adapting to the new normal. The benefit that the businesses will receive is
being protected from the pandemic. The task of business culture focuses on
people’s safety. Its product needs to function since all features are much
important.

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Targeting

SaniTect’s target market are businesses that let stakeholders stay inside
the place for a long time such as malls, stores, schools, hotels, airports,
restaurants and hospitals. The company’s approach for those markets is the
combined target market approach which combines two or more submarkets into
one larger target market as a basis for one strategy.
In the geographic segment, the market of SaniTect is focused in
the Philippines and plans to distribute in the Province of Cebu which
include cities and barangays that are located to urban areas.
The demographic segment focuses on the age group of business owners,
good for both genders, targets business that have five hundred thousand pesos
or above revenue, companies that have five or more employees, and businesses
that are operating more than a year.
Psychographic segment focuses on the group prospective, current or
previous customers by their shared personality traits, beliefs, values, attitudes,
interests, and lifestyles. The product is focused on companies that focuses on
safety and protection for the consumers and is also aware of many competitors.
Lastly, the behavioral segment focuses specific behavioral pattern in
common. SaniTect’s product is used for protecting customers, heavy usage of
the product and serves as a functional need.

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Positioning

I. Positioning Map

Firms use perceptual or positioning maps to help them develop a market


positioning strategy for their product or service. Positioning maps show where
existing products and services are positioned in the market so that the firm can
decide where they would like to place (position) their product. In this positioning
map, it shows SaniTect and four different competitors. The company with the
lowest quality and the lowest cost is the Smart Chip Tree and in contrast with
Usher Technologies in having the highest quality and the highest cost.

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Positioning Statement
For business owners, who want stakeholders such as consumers and
employees to set foot inside the place, SaniTect will provide automatic sanitized
booths in the Province, Cebu for everyone. SaniTect is known for ensuring the
stakeholder's wealth and safety. With innovation, SaniTect has an automatic,
antibacterial and antiviral solution spray. This full body sanitation promises to
prioritize the health and the welfare of stakeholders.

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B. Tactical Marketing
1. Product

Product Mix Table

Product Dimensions

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Product Appearance

SaniBooth

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2. Price

Price List

Pricing Objectives

1) Profit-related Objectives:
● Target return on investment
Return on investment as defined by Investopedia is a “performance
measure used to evaluate the efficiency of an investment or
compare the efficiency of a number of different investments.” ROI
measures the amount on return on an investment with regards to its
costs. The product price is set for the purpose of getting 10% return
on investment per product.
2) Sales -related Objectives:
● Sales Growth
SaniTect sets the price of its product in a way that it enables sales
growth. Sales growth occurs when the company is able to increase
its sales volume by attracting more customers and manufacturing
more products.

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● Increase in Market Share
Market share is defined as the percentage of a company’s total sales
in references to the total sales of a specific industry. SaniTect aims
to increase its market share to 30% in the next 5 years of
operations.
3) Competition-related Objectives

SaniTect is not an exception when it comes to competition. Since


SaniTect is a start-up company, it needs to address competition issues through
its product’s price. The following are the specific pricing objectives SaniTect is
aiming for:
● To be on par with International Competitors

SaniTect’s current competitors are mostly from outside the country.


These companies already established their name. To face these
competitors, SaniTect uses competitive pricing strategy.
Competitive pricing strategy is a pricing technique that bases the
price of the product to existing competitor product price.
● To be the Leading Sanitation Brand in The Philippines

SaniTect experiences less competition as of the moment but there


is a great chance competition will arise because of innovation.
SaniTect will set the prices of its product at the competition level
while improving the product to gain a competitive edge among the
competitors.
4) Customer-related Objectives:
● To Satisfy Customers and Gain Customer Loyalty

One of the main of the company is to satisfy customers and gain


their trust. In order to achieve this, SaniTect sets the prices of its
product with regards to the target market’s capability. If the price is
beyond its market’s capability, then SaniTect will readjust its price
to maximize customer satisfaction.

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5) Other-Objectives:
● Maintaining Good image and Reputation
Pricing policies have an impact on how the market sees your product.
Good pricing policies attract customers and their opinions about the
product can either build or destroy the company’s image and
reputation.
● Price Stability
Price stability is considered as an indicator of a high ranking company
(Jaideep, na). Fluctuations in the prices of the products are
inevitable due to external factors such as changes in the prices of
the raw materials and changes in advertisement rates. SaniTect
aims to minimize these fluctuations by setting the prices of its
product in a way that attracts customers and gains profit.
● Survival and Growth
SaniTect’s pricing strategy is developed for the purpose of survival and
growth of the company. The company envisions a future where it
product reaches other places.

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3. Place

Place Strategy
According to Investopia (n.d.), Direct distribution method is a direct-to-
consumer approach, where the manufacturer controls all aspects of distribution
thus gives the company more control over the whole process. The business has
chosen this kind of distribution method can help establish a close-relationship as
clients that can easily reach out their problems and concerns about the product
and its malfunction. This method also helps in the easier movement of production
and delivery towards the customers to ensure satisfaction. The business also has
the full control over what happens inside the business that ensures a good and
efficient production of products, thus having less expenses resulting to a more
profitable income.
The chosen distribution strategy for SaniTect is the selective strategy. The
business is not yet fully established in the market and have a small capital, to
avoid a small budget allocation because of having too many branches, the
company opts to limit the number of distribution channels in a specific
geographical location. It helps the company decide on where they should
strategically place their channels and stores that are both advantageous and
accessible by the business and clients by conducting studies where the
appropriate outlets should be located. This strategy is an advantage for
manufacturing companies like SaniTect because the company will only focus on
few branches and because of that the quality of the products will be closely
monitored and it gives more personalized buying experience to the customers.
As the company adapts to this new normal, it allows the company to
understand and assess what the consumers need right now thus, giving this a
leeway for the business to adjust thus, innovating its product to come up with a
sanitation booth called SaniTect. Choosing direct channel of distribution would be
a best type of channel in the company since it is a manufacturing type of
business. The channel process of direct channel is from producers directly to
consumers, maintaining complete control over the brand from the moment the

105
customer makes the initial engagement right up until the product has been
purchased. The type of retailer that the company will use is showrooms because
the business wants the clients to try the product in real-time so that they can feel
and experience the Sanibooth before buying it.
Main Office:

Online Stores (Website):

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4. Promotional

Promotional Strategy is “the behavior of organizations in the marketplace


in their interactions with consumers, customers, competitors and other external
constituencies, in the context of creation, communication and delivery of products
that offer value to customers in exchanges with organizations” (Varadarajan,
2009). It is elaborated that it is how the general management responsibilities
associated with the boundary spanning role of the marketing function in
organizations. With these, the SaniTect Company identifies its Promotional
Objectives, Personal and Non – Personal Communication Strategies.

Promotional Objectives
▪ Inform big companies and businesses regarding the product
The SaniTect Company informs its target market which is big
businesses in order to help them in operating their business in this new
normal. This pandemic has been a big impact into businesses and in order
to cope up and rise from it, these big companies should be informed about
the Sanitation Booth.
▪ Gain market share
Market share is the percent of total sales in an industry generated
by a particular company. In order for the SaniTect to gain market share,
means that the company develop efforts that the company put into sales
as business and also, by using new and additional strategies afterward.
▪ Focus on keeping the existing customers the company has
The company prioritizes its existing customers by approaching and
treating them in such good way. Also, the SaniTect Company assures
responsive customer service for any possible defect of the product.
▪ Develop brand loyalty
The company aims for the big businesses to keep buying its
product. It can be for their new branch or even for additional sanitation
booth of the same establishment.
▪ New businesses acquisition

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The SaniTect Company aims to acquire new businesses that will
buy their product. Provide new companies the satisfaction and best
product that they deserve.
▪ Social media engagement
Social Media is mostly used by everyone in the world, and
engaging in such means that there are possibilities of more people
knowing the business and the product. With this, the company aims to be
known by their target markets through the use of this media.
▪ Building brand awareness
Brand Awareness is the extent to which consumers are familiar with
the distinctive qualities or image of the SaniTect’s product. The company
aims to build the best image among its competitors to its target market.
▪ Sales and Profit increase
Through the use of different promotional Strategies, the company
expects for the increase of their sales and profit afterwards. With this, the
company develops an effective way of promoting their product.
Personal Communication Strategies
1. Field Selling
Field Selling is a traditional discipline in Direct Marketing; it involves
people distributing, auditing, selling or sampling promotions on the "field".
With this strategy, the SaniTect Company will be able to Inform big
companies and businesses regarding the product, building brand
awareness, Sales and Profit Increase, and New businesses acquisition.
SaniTect can market the product during charitable activities,
social events or even corporate events with field sales, which can
have a significant effect on business awareness. SaniTect can also
strengthen its communication with start-up companies that could be
potential customers.
2. Inside Selling
Inside sales means the selling by workers who contact businesses
by phone, email, or the internet of product. "Remote sales" or "virtual

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sales" are other ways of describing within sales. The SaniTect Company
convinced businesses that they need the SaniBooth in this new normal
through the use of email marketing and sending monthly newsletter to
effectively communicate with the big companies and businesses. The
company includes there the offering of free installation or at low cost of
service to the businesses.
Non-Personal Communication Strategies
1. Advertising
Advertising is a marketing medium used to advertise or sell a product,
service or concept using a publicly endorsed, non-personal message.
With this strategy the company will be able to Gain market share,
Social media engagement and new businesses acquisition. The
SaniTect Company advertised the SaniBooth through Google Ads in
order to gain publicity. Also, the company will be using of print
advertising such as business cards, magazines and others.
2. Direct Marketing
Direct marketing is a way to convey a bid, through which
companies communicate directly with a pre-selected client and
provide a direct response process. With this, the SaniTect Company
will be Optimizing official website to make it easier for the businesses
to ask about the product. Also, they show a short presentation video
about the characteristics, features and benefits of the Sanitation
Booth.

Sample Facebook Post

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Sample Online/Offline Catalogue

Front

Back
TECHNICAL STUDY

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A. Plant Location, Capacity, Facilities and Layout

Figure 4.1. SaniTect Plant Location Map

Figure 4.2. SaniTect Plant Building Façade

The plant site of SaniTect is located in P. Sanchez Pagsabungan,


Mandaue City. The estimated distance between the plant site and the office store
is 8.7 km and the travel time takes around 1 hour and 30 minutes and above,
depends on the traffic using the route via Central Nautical Highway. On the other
hand, there is another route that the delivery trucks of the business can use if the
Central Nautical Highway is very traffic and that is the road of M.L Quezon
Avenue going through the Gov. M. Cuenco Avenue that passes Banilad Road,
approximately 9.6 km apart. The location of the plant site is the best in terms of
the availability of raw materials, labor, and transport facilities. First, the
availability of raw materials because the area is near to different warehouses and
factories 4.2 to 8.6 km away and most of the suppliers of the business are
located in Mandaue City. Second, the availability of labor because most of the
workers are living in the city and it is not that far that will no longer be stressed in
commuting and there are a lot of boarding houses for rent. Lastly, the availability
of transport utilities because the plant site has a close distance to Mactan
International Airport just 6.0 km away and also close to the different pier here in
Cebu, ranges from 4.4 to 7.0 km. The cost of transporting raw materials to the
plant ranges from Php 3,000 to 6,000 additional shipping fee of Php 1,150 to
2,899, depends how far the factories or warehouse of these raw materials.
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