Republic of the Philippines

Department of Education
REGION I
SCHOOLS DIVISION OF CANDON CITY
Candon City, Ilocos Sur

Business Enterprise Simulation-12

Quarter 3 (Week 1-2) – Module 1
Prepared by: Sadiri Mat T. del Rosario

Lesson
Business Opportunity Analysis &
1 Market Research

I. Objectives:
1. Determine a business’ viability and feasibility by scanning the market and identify
potential business opportunities to capitalize on (ABM_BES12-Ia-c-1);
2. Describe the purpose of Market Research and using appropriate analysis framework and
methodology in choosing a product which is feasible in terms of the market, operations
and financials (ABM_BES12-Ia-c-2);
3. Identify the product which meets the market demand from the outcome of the market
research;
II. Guide Questions:
1. What is business viability and feasibility?
2. How do you scan the market and identify potential business opportunities to capitalize
on?
3. What is the purpose of Market Research?
4. How do you construct an appropriate analysis framework and methodology in choosing
a feasible product?
5. What product is best identified as having market demand from the outcome of your
market research?
III. Discussion:
A. Business Viability and Feasibility
All businesses have to start from scratches. What makes or breaks a business depends
on whether it was thoroughly planned or not before it even started. A well-planned business
has the potential to grow but a lack of planning is much like setting foot into unchartered
territories and diving into a risky situation with so many uncertainties at hand.
The first step to planning out the business is to identify why it will exist. The answer
to the “why” is the reason for the birth of the business. Primarily, the business operates to meet
a market demand. There are many societal factors how a demand is created but once it is there,
a business that would meet such demand must also begin to exist. Therefore, it is very important

Module in Business Enterprise Simulation Week 1 Module 1…………………..………….Page 1 of 8

to identify the relevant market demands that currently exist and where the emergence of a new
business venture will fit in.
Similar to the success of a business venture are the words “viable” and “feasible”.
Viable means, “having a reasonable chance of succeeding and developing (Webster
Dictionary).” Viability is synonymous with being achievable, attainable, doable, feasible, and
possible. If your business idea is “feasible”, it means that you have enough good and practical
reasons to pursue it.

B. Business Opportunity Analysis

A simple and basic method of discovering business opportunity is to think of a product
that already exist in the market which you think is very needful but had flaws, popular customer
discontentment that you already have heard of, or, simply obvious areas for improvement and
innovation. Once you’ve identified such product, list down everything you have observed
about it that may need to be reinvented. Pursuing a similar line with a different look or outcome
of it can be a good business opportunity.
Take a look, for example, what popular pandesal bakeries had recently been doing to
make some business opportunity working. Somebody introduced the “ube-cheese” flavor and
it worked. Another popular pandesal bakery, who’s beginning to get negative feedbacks about
how small their two-peso pandesal is, had beaten their own potential downfall by introducing
their five-peso bigger size “cheese-desal.” It seemed to work as well. If somebody else did it
for them, then it would have probably cost them a lot of trouble.
An example of this is shown on the next section illustrated by an analysis workboard
(see table 1). You will be required to do this yourself in order to analyze a business opportunity
using this method.

C. Market Research
A more extensive way of identifying a business opportunity is to identify who your
would-be market is and find out their need. In order to gather data providing the identification
of your would-be market, you must implement a market research. Market Research is a
system for collecting, recording and analyzing information about the customers, competitors,
products and services. It aims at identifying the customers and their behavioral buying patterns.
Customers are the people or organization who buy the product or services companies offer.
Before establishing your new enterprise, you will have to determine who your primary
customers are and whether these customers are willing to buy your product or service.
Understanding people needs and wants will allow you to identify business opportunities. Here
are the steps in going through a market research:

1. Perform a market segmentation

In order to identify the demand of the market, one must first segment his or her market.
Since the market is often too large, it is impossible to please everyone in the market. Recall
your past lessons in your subject Principles of Marketing on “Market Segmentation.”
Segmenting the market according to geographic data, demographics data, psychographics data
and behavioral data is an effective way of defining your target market later on.

Module in Business Enterprise Simulation Week 1 Module 1…………………..………….Page 2 of 8

 Geographic segmentation defines the target market in terms of those living in a certain
place or locality like a country, a region, a city, a barangay or a neighborhood area.
Demographic segmentation defines the target market in terms of a particular age,
gender, sex, according to level of family income, or according to educational achievement.
Psychographic segmentation defines the target market in terms of a set of customers
with a common lifestyle, belonging to a social class, or simply identifiable personality traits.
Behavioral segmentation defines the target market in terms of having user status, or
have common usage rate, or seek identifiable benefits, identified with particular occasions,
loyalty behaviors or predictable attitudes.

2. Identify your target market

Profiling is the best way to define your potential market according to its segmentation.
A sample profiling of your target market using market segmentation is illustrated in Figure 1
in section II.
As a consequence, market segmentation will then help you to identify your target
market. Target markets refers to a group of potential customers that has specific needs. Once
the target market is identified, you can easily develop a product/service that will meet specific
customer needs.
After gathering your initial data about your potential market, decide what particular
segment of the market you want to focus on by answering a set of reflective questions such as
these shown below:
1. Who is my potential market? Are my customers’ individuals or companies?
2. If my customers are individuals, how old are they? How much money they earn? Where do
they live? How do they spend their money?
3. If my customers are companies, what industries are they in? Where are those companies
located?
4. What needs or wants will my product or service satisfy?
5. How many potential customers live in the area in which I want to operate?
6. What is the demand for my products or services?
7. Where do these potential customers currently buy the products or services I want to sell
them?
8. What price are they willing to pay for my products or services?
9. What can I do for my customers that other companies are not already doing for them?

3. Lay-out your assumptions about your products or services or the nature of your
business.
Make a statement or statements that will define what you want to pursue as a business
in relation to what you have identified as your target market.

4. Verify your target market’s needs and wants

Verify the truth of your assumptions by conducting a market research through the most
appropriate analysis framework and methodology to gather data that will help you arrive at
sound conclusions. The market research uses the same tools and techniques as with researches
in other fields of study. It utilizes survey questionnaires, observation, and focus groups as

Module in Business Enterprise Simulation Week 1 Module 1…………………..………….Page 3 of 8

primary sources of data. If the need arise, secondary sources such as publication, books,
information on websites, trade magazines and journals, and newspaper articles and statistics
can be drawn as supplemental source of data as well. After conducting the market research,
you are now ready to settle down by identifying the product and the business approach in
meeting market demands.

5. Draw out your conclusions

After processing the data from your market research through statistical procedures, you
must be able to prove to yourself or to a creditor who will loan you money for capital a concrete
conclusion that your assumed business opportunity is truly viable and feasible as evidenced by
the data you’ve gathered. Through this, you can now move on to the next step of your business
journey…creating the marketing, operational and financial plan of your would-be business.

IV. Examples
A. Business Opportunity Workboard

Products I’ve Particular Flaws, What I Plan to Do

Consumed or Experienced Customer Discontentment or Innovate and Introduce
Using Which I Want to or Area of Improvement as a New Product in the
Improve or Reinvent. Market
Instead of I will introduce an
e.g. Umbrella protecting oneself from umbrella with a “gutter”
being caught on a heavy surrounding its ridge to
rain, the user can’t avoid hold the rain water and
getting wet because water make it flow toward only
drips on all sides and one area and pour down
corners around the the water to a single drip.
umbrella.
Table 1. Business Opportunity Work Board

You may list down a few more products to work with then choose what would be the
most feasible product to focus on and start with.

B. Market Profiling
As discussed earlier about market segmentation, a market profiling serves as the
summary of the results of your geographic, demographic, psychographic, and behavioral
segmentation. Figure 1 illustrates a market profile for the target market of a sporting goods
store.

Module in Business Enterprise Simulation Week 1 Module 1…………………..………….Page 4 of 8

 • Individual 23 to 52 years of age
• Participates in sports
• Wants good quality sports equipment
• Looks for good prices
• Lives in Dagupan or near Metro Dagupan
• Average household income of P250,000 year.

Figure 1. Sample Customer Profile for a Sporting Goods Store

C. Market Research
Below is a sample template of a simple market research introduction that you can follow
together with the questionnaire formed to gather data to be processed to arrive at findings and
conclusions.

A Sample Template of a Marketing Research Introduction

Case
The researcher plans to launch a whitening soap that would cater to infants and toddlers.
This idea is to create the most positive after-effects benefits to baby skin. The product aims to
smoothen and whitens baby’s skin without irritation. However, the researcher is not sure if the
mothers will like the idea. Thus, this market research will be conducted in order to find out
market demand for such a product.
Market Research Approach
This research aims to collect data through inquiry to people on their knowledge,
choices, and, perceptions. Therefore, the approach in market research that is suitable for this
case would be the Primary Market Research Method, specifically survey research.
Statement of the Problem
This research aims to know the perceptions of mothers who have infants or toddlers.
Specifically, it seeks to answer the following questions:
1. What are the qualities of infant soap that mothers want for their babies?
2. What will be the possible prices for the product that the average mother can afford?
3. What are the possible concepts and attributes of an infant soap that needs to be
incorporated further from the usual product existing in the market?
Research Objectives
1. To know the perceptions of customers on the idea of launching an infant whitening
soap.
2. To know the target customers who are willing to buy the product.

Module in Business Enterprise Simulation Week 1 Module 1…………………..………….Page 5 of 8

 3. To help the researcher in gaining knowledge and ideas in launching and developing the
proposed product.
4. To find out the category preference.
5. To find out the source of influence of customer purchase.
6. To find out the attitudes, needs, tastes and preferences of consumers towards whitening
baby soaps.
Sampling Unit
Mothers with infants and toddlers who have tried or want to try using whitening soaps
in the locality.
Sampling Size
The sample size would be 20 mothers.
Sampling Procedure
The researchers will be surveying mothers with infants and toddlers in 10 different
barangays in their locality. Each barangay will have 2 representatives.

SURVEY QUESTIONNAIRE

Name:
Age:

Instruction: Please answer honestly the following question. Put a check (/ ) mark on the
box which corresponds to your answer.
1. Do you currently use a special infant soap for your child?
Yes No Sometimes
2. Have you tried using whitening products for your baby?
Yes No
3. What criteria do you consider if you are to choose a skin-whitening product?
Quality Price Efficiency Popularity
4. What quality of a baby milk soap are you looking for?
Contains natural ingredients
Softens the skin
Whitens the skin
Non-toxic
Petroleum-free
5. Of the brands you currently use as baby products, how did you find out about them?
(Select all that apply)
The brand has been around forever

Module in Business Enterprise Simulation Week 1 Module 1…………………..………….Page 6 of 8

 Friend or family member told me
Advertising on TV or in a magazine
Found the product in a retail store
Found the product online
6. Are you loyal to the brands you use for your baby's personal care needs or are you
willing to try new products? (Select all that apply)
I am always willing to try something new
I would try a new product if it costs less
I would try a new product if I received a sample
I would try a new product if a friend told me about it
Once I find something that works, I’m sticking to it
7. What is your preferred price of the soap?
Php 50.00 - Php100.00
Php 101.00 – Php 150.00
Php 151.00 – Php 200.00
Others (please specify):

V. Generalization
A business must have the characteristics of being viable and feasible. The business is
viable when it has a chance to succeed and it is feasible when there is a practical reason to
pursue the business concept. One basic method of scanning business opportunity is to find out
what to innovate or improve from existing products. Introducing a newly improved version of
an old, familiar product can be a good business opportunity.
A more extensive and scholarly way of finding business opportunity is through the
market research. It includes market segmentation to find out the target market and its specific
needs and verifying it through a research tool whether though a survey questionnaire,
observation, or focus group discussion. Out of the data gathered, findings and conclusions will
either verify the assumed business opportunity or negate its viability and feasibility.

V. Exercise Sheet
(Use a separate clean sheet of paper as an answer sheet)

A. Multiple Choice. Encircle the letter of the correct answer among the choices.
1. What is the primary reason why the business will exist to operate?
a. charitable purpose c. meet market demand
b. financial profit d. owner’s line of interest
2. What is referred to when a business idea is said to have a reasonable chance of succeeding
and developing?
a. Appealing idea b. bright idea c. excellent idea d. viable idea
3. When you have a practical and good reason to start a particular business based on actual
situations, how do you describe your business concept?

Module in Business Enterprise Simulation Week 1 Module 1…………………..………….Page 7 of 8

 a. feasible c. profitable
b. possible d. viable
4. What refers to a system for collecting, recording and analyzing information about the
customers, competitors, products and services?
a. Customer profiling c. market segmentation
b. market research d. Scientific inquiry
5. What defines your target market in terms of their common lifestyle?
a. Behavioral segmentation c. Geographic segmentation
b. Demographic segmentation d. Psychographic

For nos. 6-10, identify from the choices below which step in conducting a market research is
being described:
a. Lay-out your assumptions d. Perform a market segmentation
b. Draw out your conclusions e. Verify your target market’s needs and wants
c. Identify your target market

___6. Define your market according to geographic data, demographics data, psychographics
data and behavioral data
___7. Prove to yourself or to a creditor that your assumed business opportunity is truly viable
and feasible
___8. State what you want to pursue as a business in relation to your target market.
___9. Utilize the most appropriate analysis framework and methodology to gather data.
___10. Answer a set of reflective questions concerning the profile of your market.

V. References
Websites:
“Market Research.” Small Business Development Corporation. Retrieved February 20, 2021
from https://www.smallbusiness.wa.gov.au/business-advice/marketing/marketing-
research#:~:text=Market%20research%20is%20an%20effective,what%20your%20compe
tition%2
Yesbeck, Jennifer. n.d. blog.alexa.com. Accessed February 20, 2020.
https://blog.alexa.com/types-of-market-segmentation/.

VI. Answer Key

10. c 5. d
9. e 4. b
8. a 3. a
7. b 2. d
6. d 1. c

Module in Business Enterprise Simulation Week 1 Module 1…………………..………….Page 8 of 8