CHAPTER III

Marketing Aspect

This chapter provides information that will reflect the status of the market

in the area of the proposed business. This includes the market research analysis

which explains the target market, estimated market share, intensity of

competition, and the marketing strategy which includes the sales and distribution

strategy, pricing strategy and promotion strategy.

Market Research Analysis

This chapter deals with the process of understanding and satisfying the

customer needs, and expectation through the services of the selected target

market which is better in the competition and knowing the possible respondents

in the business. The proposed business must identify not only to compete with

various competitors in the industry but to get analytical information on the

competition, market size and varied other market needs to give better and

satisfactory services.

Target Market

The primary target market of the proposed business are all professionals.

They are more likely to order food for delivery because they have salary. The

secondary target market is parents because food delivery services are an

excellent option for busy parents and families. Not only will it save them time

from going to the grocery store, but it will also allow them to cook with their

children without all of the extra work of food preparation.

Estimated Market Share

The estimated market share is sales measured as a percentage of an

industry’s total revenues. The estimated market share of the proposed business

will be 40% because it is new in the market. For open market will be 60%

because there are possibilities that new entrants will put also this kind of

business.

40%

60%

Proposed Business Open Market

Figure 5 Market Share

Intensity of Competition

The intensity of the competition of the proposed business is low because

there are no existing players in Maasim Sarangani Province.

Marketing Strategy

Marketing strategy focuses on a business’s competitors, customers,

market size and the potential for the market growth. The strategy will help to

determine what aspects of the business have the most influence on its

customer’s. It is a way for a business to obtain its potential for maximizing profits.

Sales and Distribution Strategy

The proposed business will be using direct service type of sales and

distribution strategy because the proposed business will just wait for an order

from the customers and riders will also deliver it right away with handle and care.

Pricing Strategy

Pricing strategy refers to the models a business uses to find the best price

for its service. It allows to maximize profit margins, plus create competitive

advantage by setting prices that help maintain market share.

Pricing Structure

The following are the service rate offered in the proposed business:

Service Rate

Poblacion 25

Colon 25

Kabatiol 30

Malbang 45

Kablacan 45

Kamanga 50

Daliao 50

Tinoto 60

Pananag 60

Kanalo 60

Lumasal 70

Siguel 70
Promotion Strategy

This promotion used to spread the product and services to the customers

and broader public to aware of the service offered by the proposed business.

Advertising

In advertising, the company will use a social media because it can connect

and engage potential customers wherever they are on social media, including

Twitter, Facebook, Instagram, and even some of the younger platforms like

TikTok. Marketers can engage their audience with a strong social media strategy

and the ability to create engaging content.

Social Media- It has grown to be the most influential and important virtual

space, where the platform is used not only for social networking but also for

digitally advertising brands and products. The power of social media is

admirable; the company can reach a large number of people within seconds of

posting an ad, which helps in lowering costs and making the ads reach a wider

audience.

Flyers- It is intended for wide distribution of services and is usually posted

in public places or given to individuals to inform them about the proposed

business.

Tarpaulins- It will be posted in public places so that customers can easily

identify the business, and it will provide information about the proposed

business's services.
Sales Promotion

Sales promotion is the process of convincing a potential consumer to

purchase a product or service. Sales is intended to be used as a simple strategy

to increase sales.. The sales promotion of the proposed business are the

following:

Coupons- In sales promotion, the business will be using coupons

because it can help attract customer, especially if they're on the ground about

purchasing something. A coupon can commonly push customers over the edge.

A coupon can boost foot traffic and delivery orders for businesses, resulting in

increased sales and revenue.

Discounts- Regular customers should receive exclusive discounts on

each transactions; this will assist the company deepens its relationship with them

and increase the likelihood that they will suggest new clients to it. People enjoy

recommending products from companies that have a lot to offer their friends and

loved ones.

Loyalty Cards- Loyalty cards not only provide customers with perks and

benefits, but they also enhance an emotional bond between the business and its

customers.