II.

MARKET ASPECT

II. Market Aspect 8

2.1. Product Description 8
Hoggy Cafe and Snack House
The Hoggy House will be a coffee house/cafe located in Libjo, Dinagat. Located in the Poblacion
area, the cozy and Hogwart-ish house will be located in the front of the Park near the Municipal
hall, Free-wifi are, High School, and Elementary School area. The cafe will not only serve gourmet
coffees, espresso, and drip coffee, lattes, milkteas, and smoothies but also provide different
snacks that could satisfy everyone’s cravings. When it comes to pastries, the primary line will be
muffins, breads, cookies, croissant, and rolls. All pastries will be supplies daily by a local bakery.
The cafe will be open for business on Monday- Thursday 7am-9pm, Fridays and Saturdays 7am-
11pm, and Sundays 7am-5pm.
2.2. Target Market 8
Business Owners & Workers

57.16% of Libjoanons are those economically active population which shows that 10,152 of
18,051 are those actual or potential members of the work force. During the week, over 250
people work in the Poblacion and most of them work in the morning so the cafe will open early in
7am. This group includes managers from the establishments near the area, local government
worker, and teaching professionals. With the fact that this cafe is located at the center of
business and workers area, a number of tradesmen have promised to patronize the cafe
everyday. Fast and accurate service will be provided, as these customers often have limited time
to eat.

Students
ACES (Albor Central Elementary School) and (ANHS) Albor National High School is nearby. Pupils
and Students are likely to visit the Hoggy Cafe and Snack House during their free time, weekends,
on very nice days, and during their holiday periods. With the help of word of mouth and flyers
that will be distributed on campus during those times, offering the students a percentage
discount on certain meals and during certain times will be a good idea for promotional purposes.

2.3. Demand 8
The market for Coffee segment is expected to show a volume growth of 5.5% in 2023. The
averagge volume per person is ecpected to amount to 1.3kg at the end of 2022. The total coffee
consumed in the Philippines in 2020 was about 3.3 60 kg bags. This reflects a long-term increase
in coffee consumption over the years. In addition, according to the Philippines statistics,
millennials and Gen Z’s are willing to spend P100 on a cup of coffee although the prices of this
cafe is cheaper than that.
2.4. Supply 8
While Philippine coffee production remains relatively low and is unable to even meet local
consumption demand (coffee production was at 62,062 metric tons of green coffee beans in 2019
but Filipinos consume 100,000 metric tons of coffee a year and drink almost as much coffee as
the people of other big countries), the Philippines is looking to be one of the leading producers of
top-gradee coffee around the world. According to the Philippine Coffee Industry Roadmap, the
country is expected to raise coffee production seven-fold by 2022. Through the coffee roadmap,
they aims to guarantee a coffee industry that is cost-competitive, aligned with global quality
standards, reliable, and environment-friendly.
2.5. Demand & Supply Analysis 9
70% of Philippine coffee shop are imported which means that coffee lovers are consuming more
of the country’s own coffee supply. Reduced coffee growing and increased coffee consumption
mean that the country is more reliant on coffee imports than ever before, and 5,000 metric
tonnes of the world’s second-most highly traded commodity (after oil) is shipped into the nation
every year. This means that the business can’t rely solely at the local supply. Though this is only a
small business and can’t be deemed as fast supply consumer, this won’t stay as it is for the reason
that there are future plans for expansion.

Particulars Year 1 Year 2 Year 3

Projected Demand 1,665,476 1,534,987 1,786,345
Less: Projected Supply 1,045,274 963,734 1,102,482
Projected Gap 620,202 571,253 683,863

Apparently, the demand still exceeds the supply resulting to shortage of the abovementioned
products. The table below shows the gap between demand and supply. The bigger the gap, the
more favorable it is for the group to enter into such venture.

2.6. Market Share 9

Taking also into consideration the group’s capacity to produce certain volume of processed fish,
the table below shows the captured market of the group. Each year, it fluctuates.
Particulars Year 1 Year 2 Year 3
Projected Production Volume 19,476 25,533 18,445
Divided by: Projected Gap 620,202 571,253 683,863
Projected Market Share 0.03140% 0.04469% 0.02697%

2.7. Price 9
The proponent will use the cost plus mark-up method, the psychological pricing method, and
Bundle pricing.
Cost plus mark-up method, involves taking the amount it cost you to make the product and
increasing that amount by a set percentage to determine the final price. In this type of pricing,
the profits are more predictable since you’re setting your mark-up to a fixed percentage.
Psychological pricing method on the other hand play on the psychology of consumers. In a way, it
involves luring customers by slightly altering price, product placement, or product packaging. In
this method, it can help the business to sell more products by slightly tweaking sales tactics
without losing profits.
Meanwhile, the Bundle pricing is selling two or more similar products or services together for
one price. Bundling is an effective way to upsell additional products to customers or add value to
their purchase. In this way, the customers discover new products they weren’t intitally planning
to buy and may end up purchasing them again.
All of these pricing method are applied below.
Coffees 80Z 120Z
Latte P79 P109
Cappuccino P79 P109
Flat White P89 P119
Americano P68 P98
Mocha P79 P109
Espresso P50 P68
Hot Chocolate P68 P98
Iced Coffee
Iced Latte P79 P109
Iced Mocha P79 P109
Iced Americano P68 P98
Coffee Jelly P60 P90
Milkteas
Matcha Milk Tea P80 P109
Oreo Cheesecake P80 P109
Strawberry P80 P109
Strawberry Oreo Chocolate P80 P109
Choco Wintermelon P90 P115
Banana Wintermelon P90 P115
Lemon Wintermelon P90 P115
Milk Taro P90 P115
Caramel Milk Tea P80 P109
Coffee Milk Tea P80 P109
Toffee Milk Tea P80 P109
Breakfast Menu
Beefsilog P65
Porksilog P65
Longsilog P65
Hotsilog P65
Lumpiasilog P75
Hamsilog P65
Daingsilog P55
Pancakes P55
Snacks
Hoggy Cafe Special Burger P99
Ordinary Burger P55
Fries P50
Combo Meals
Burger, Iced Coffee 80z (mocha or latte), and 180
 Fries
Silog, Milktea 80z, Burger 190

2.8. Channel of Distribution 10

Hoggy
Supplier Customers
House Cafe
2.9. Promotional Strategy 10
Local Residents & Workers -
Specials will be promoted with an A-frame sign and during slow periods coupons and ‘2-for-1
deals will be offered. Menus will be distributed to local businesses
and the faxing-in of orders will be encouraged. Take-out will be attractively boxed and
given equal priority to sit-down services.
Tourists - Menus will be distributed to the local lodging establishments to encourage their
guests to come to the Café. Advertisements and listings will be placed in state wide and
regional tourist guides and publications. Menus will also be placed at information booths
and other spots likely to have tourist traffic.
Students- With the help of word of mouth and flyers that will be distributed on campus during
those times, offering the students a percentage discount on certain meals and during certain
times will be a good idea for promotional purposes.
Online- It would also be better to put my cafe online as it can help to gain more customers. By
providing a free delivery within the area, and for attracting potential customers by giving coupons
on special occasions.