7/8

EXPLORATORY
(FOOD PROCESSING)

TLE 7/8- FOOD PROCESSING

Department of Education • Republic of the Philippines
WEEK 8 P a g e 1 | 10
 Lesson 8 FOOD PROCESSING
Analyze Market Needs and Determine the Possible Products
and Services That Will Meet The Needs Of Clientele
(TLE_ICTAN11/12 PC-la1)
Vicky U. Magno
Writer

This module was designed to help you demonstrate understanding concepts, underlying
principles of developing simple business plan. (TLE_ICTAN11/12 PC-la1)
After going through this module, you independently prepare and present a simple business
plan and expected to:
a. analyze the market needs; and
b. determine the possible products and services;

Direction: Carefully read the questions below. Choose the letter of the correct answer.
1. The first step in performing a market analysis is to know the volume of the potential customer,
also known as __________________________________.
A. Conduct Market Segmentation C. Define your Target Market
B. Determine the Market Size D. Outline Barriers to Entry
2. _____________________ is the influential factors that trigger them to buy your product and
service.
A. Customer brand C. Improve your product and service
B. Customer needs D. Reduce the number of support tickets
3. How to write an effective and well-rounded market analysis for your small business plan?
A. Buy your own product C. Spend more money for brochures
B. Conduct market research D. Use difficult business words to understand
4. How to define your target market if you put up a food processed meat shop?
A. Age C. Sex
B. Educational attainment D. Source of Income
5. Every business needs a reason for its customers to buy from them over their competitors, it is
also known as _____________________________.
A. Unified Sales Product C. Unique Sale Proposition
B. Unique Sales Preposition D. Unified Sales Production

6. A business plan which communicates about the latest trends in the market.
A. Market plan C. Market list
B. Market analysis D. Market venture
7. It refers to the number of potential customers.
A. Analysis C. Volume
B. Value D. Weight
8. A best place to outsource the different latest business venture.
A. Home C. School
B. Internet D. Church

TLE 7/8- FOOD PROCESSING

WEEK 8 P a g e 2 | 10
9. How should a good business man gather all the necessary information about the latest trends
in business?
A. Advertisement C. Bulletin Board
B. Announcement D. Research
10. It is a clear guide for building a successful enterprise focused on achieving your personal and
financial goals.
A. Business idea C. Business plan
B. Business Research D. Business venture

Activity 1: Give 4 words that you learned about entrepreneurship.

Entrepreurship

Analyze the Market Needs of Clientele

Conducting a market analysis is a very important activity for anyone who wants to start a
business. The market analysis should under a business plan which communicates about the latest
trends in the market. The market analysis should provide a detailed overview of the industry you
intend to sell your product or service that will become successful.

What is Market Analysis?

The market analysis includes a quantitative and qualitative assessment of a given market.
A perfect market analysis will convince by investigating the size of the market in volume and
value, the customer segments that comprise the market, the buying habits that these consumers
exhibit, competitors, and other barriers.
The purpose of the market analysis section of a business plan is to prove to stakeholders
such as potential investors that you know your market thoroughly and that there is a viable
opportunity for a sustainable business venture.

TLE 7/8- FOOD PROCESSING

WEEK 8 P a g e 3 | 10
How to Perform a Market Analysis
Step 1: Determine Market Size
In doing a business it is important to assess the size of the market. For example, if you’re
looking to open a local shop then you should take a local approach to assess your market. If your
business plan is proposing a nationwide chain of shops, then you need to assess your market on
a national scale. While determining market size, you must look at both volume and
value. Volume refers to the number of potential customers, and value refers to the value of the
market itself. Determining market value can be a challenge.
Step 2: Conduct Market Segmentation
The conduct of market segmentation enables you to know the democratic perspective .If
your proposed business will target certain market segments, then you should segment the market
to understand it further. A best practice to start market segmentation is to examine the market
from a demographic perspective. This provides surface-level insights that can help you determine
where next to drill into. You can even use these various methods of segmentation in tandem!
Step 3: Define Your Target Market
As a business person, target customers should be of the customers that you will focus on
within the market. For example, if you were thinking about opening a processed meat shop, you
could decide to either be a generalist — selling standard, affordable processed meat shop — or
you could choose to focus on high-end, expensive one. Each of these examples would appeal to
different market segments, and the approach to connecting with the relevant target market would
be different despite having a similar core product (processed meat). Defining your target market
is most important when your market has obvious segments that have different drivers of demand.
Step 4: Define the Market Need
Now we are moving on to the more qualitative assessment of the market by defining the
market need. While knowing the market need, you should go into detail on the drivers of demand
for your product. Why will people buy your product? What problem is it solving? How is it different
from what is already in the market?
Why should this market purchase from your business? It helps the business for the right needs of
the clientele. It will inform your market positioning, which should be thoroughly addressed later on
in your business plan. The market need can often be derived from looking at the efforts of
competitors, and drilling down into the areas that they are not focusing on, or areas that you can
provide better value than what they offer.
Step 5: Outline Barriers to Entry
In this section of your market analysis, you should answer two questions that investors always
ask:
1. What factors prevent someone from opening a competing shop in proximity to yours and
taking 50 percent of your business?
2. What factors do you think will make you successful while entering this market?
Simply put, barriers to entry protect your business from new competition. Examples of barriers to
entry include:
● Brand — the costs required to obtain a certain level of recognition
● Location
● Regulation
● Access to resources — such as suppliers and third-party vendors
● Technology
● Investment
● Access to distribution channels

7 Tips for Writing a Market Analysis

Here is a collection of tips to help you write an effective and well-rounded market analysis
for your small business plan.
1. Use the Internet: As we all know that must people rely on internet. The internet is the best
place to outsource the different latest business

TLE 7/8- FOOD PROCESSING

WEEK 8 P a g e 4 | 10
 2. Be the Customer: One of the most effective ways to gauge opportunity among your target
market is to look at your products and services through the eyes of a purchaser. What is
the problem that needs to be solved? How does the competition solve that problem? How
will you solve the problem better or differently?
3. Cut to the Chase: It can be helpful to your business plan audience if you include a
summary of the market analysis section before diving into the details. This gives the
clientele ideas about the details of the business quickly.
4. Conduct Thorough Market Research: Put in the necessary time during the initial
exploration phase to research the market and gather as much information as you can.
Send out surveys, conduct focus groups, and ask for feedback when you have an
opportunity. Then use the data gathered as supporting materials for your market analysis.
5. Use Visual Aids: Information that is highly number-driven, such as statistics and metrics
included in the market analysis, is typically easier to grasp when it's presented visually.
Use charts and graphs to illustrate the most important numbers.
6. Be Concise: In most cases, those reading your business plan already have some
understanding of the market. Include the most important data and results in the market
analysis section and move the support documentation and statistics to the appendix.
7. Relate Back to Your Business: All of the statistics and data you incorporate in your market
analysis should be related back to your company and your products and services. When
you outline the target market's needs, put the focus on how you are uniquely positioned
to fulfill those needs.

Determine the Possible Product or Services that will meet the Need of Clientele
Most of the businesses focus on innovations and fail to align their brand with customer
needs. A business should be customer-centered because you cannot persuade anyone to buy
what you’re offering unless you understand what your customer needs.
Understanding what customer wants should be the focal point of every business and
meeting their needs will build a solid customer base. Knowing your customer can be further use
to persuade them about your product.

What are customer needs?

Customer needs are defined as the influential factors that trigger them to buy your product
or service. To identify customer needs, it is important to understand the reasons behind their
decision making. Every business needs a reason for its customers to buy from them over their
competitors. It is known as a Unique Sales Proposition (USP). It can be identified by completing
the phrase “Customers will buy from me because my business is the only best product. “Your
Unique Sale Proposition can change depending upon the changes in your business or market.

Why is it important to identify customer needs?

It is important to understand customer needs because once it is met early as it helps you
align with other internal teams (sales, support, or product).
Knowing your customer is well worth making to find out: who they are, what they buy, and
why they buy it. Further, proper studying of your customer's needs can help you to develop a
more detailed picture of them and understand how to target them.
Being able to understand your customer needs helps to:
● Provide faster solutions – One of the most sought after things is that every customer wants
is real-time support. By identifying the needs of your customers you can provide faster
and effective support.
Improve your products & services – Customer research helps understand the motives
behind the buying process. You can learn about the areas you are missing out and create an
effective Unique Sale Proposition. The insights can be used to enhance the products or services
to satisfy customer needs.
● Reduce the number of support tickets – Building the product and services considering the
needs of the target customers to ensure effective solutions to customer issues.

TLE 7/8- FOOD PROCESSING

WEEK 8 P a g e 5 | 10
How to identify customer needs?
Recognizing customer needs includes proper research across your industry and asking
your customers about their feedback on your business. It is very important to gather in-depth
details from your customers through regular communication and be sure you can deliver on their
individual needs. Understanding customer needs can act as a catalyst for your business to deliver
better customer service, build long-lasting relationships, and maintain a consistent source of
revenue. The key way to anticipate is via a thorough analysis of the needs and wants of
customers.

Why is a business plan important?

Creating a business plan will help you achieve your entrepreneurial goals. A clear
business plan provides you with a guide for building a successful enterprise focused on achieving
your personal and financial goals. It can also help persuade others, including banks, to invest in
your business.

Writing the Business Plan

Organize all the relevant information about your business. Begin creating section headings
and putting the appropriate information under the appropriate headings. Effectively separating
your business' unique approach to each of these headings will organize your plan in a way
investors find useful:
1. Title Page and Table of Contents
2. Executive Summary, in which you summarize your vision for the company
3. General Company Description, in which you provide an overview of your company and
the service it provides to its market
4. Products and Services, in which you describe, in detail, your unique product or service
5. Marketing Plan, in which you explain how you'll bring your product to its consumers
6. Operational Plan, in which you describe how the business will be operated on a day-to-
day basis.
7. Management and Organization, in which you describe the structure of your organization
and the philosophy that governs it.
8. Financial Plan, in which you illustrate your working model for finances and your need from
investors

How are you going to make a business plan?

Below is the template for a business plan.

Section A: Business

Business Idea:
What is your product? _________________________________________________________
What makes your product different from your competitors? _____________________________
Do you like your product? Why? __________________________________________________
Business Name: ______________________________________________________________
a. What does your business name signify? ________________________________________
b. What makes it unique? ______________________________________________________
c. Where is your business located? ______________________________________________

Target Market:
Who will buy your products? _____________________________________________________
What is their food preference? ___________________________________________________
Where will you market your product? ______________________________________________

TLE 7/8- FOOD PROCESSING

WEEK 8 P a g e 6 | 10
Marketing Strategy:
How will you sell your product? (Online, Fliers, or Posters) Why? _______________________
___________________________________________________________________________
Pricing:
How much will be the price of your product? ________________________________________
Is it a reasonable price for your customers? _________________________________________

Profit:
What is the selling price of your product per pack? ___________________________________
How much is your profit per pack? _______________________________________________
How are you going to compute for the profit? (20% of the total expenses)
____________________________________________________________________________

Logo/Label:
You should follow the correct procedures in making a label.
Make your logo or label simple, readable, and presentable.

Section B: Financial Data

I. Sources and Funds:
a. How/who will you fund your business? ________________________________________
b. How much will be your capital? ______________________________________________
II. Equipment List
a. What are the available equipment, tools and utensils that you have at home?
_______________________________________________________________________

III. Financial Statement:

Day Quantity Product Selling Total Sales Expenses Total Profit
Price
20 Pieces Longganisa P 10.00 P 200.00 P 125.00 P 75.00
1
2
3
4
5
Total

Activity 2: Ready…set…go….
A. Direction: Search for 10 business venture about food processing that is popular during
this Quarantine Period

1. ________________________
2. ________________________
3. ________________________
4. ________________________
5. ________________________
6. _________________________
7. _________________________
8. _________________________
9. _________________________
10._________________________

TLE 7/8- FOOD PROCESSING

WEEK 8 P a g e 7 | 10
Activity 3: Create your Simple Business Plan

Section A: Business

I. Business Idea:
a. _____________________________________________________________
b. _____________________________________________________________
c. _____________________________________________________________
_____________________________________________________________
II. Business Name:
a. _____________________________________________________________
b. _____________________________________________________________
c. _____________________________________________________________
III. Target Market:
a. _____________________________________________________________
b. _____________________________________________________________
c. _____________________________________________________________

IV. Marketing Strategy

a. _____________________________________________________________
_____________________________________________________________
V. Pricing
a. _____________________________________________________________
b. _____________________________________________________________
VI. Profit
a. _______________________________________________________________
b. _______________________________________________________________
c. How are you going to compute for the profit?

VII. Logo/Label:

Section B: Financial Data

I. Sources and Funds:

a. _______________________________________________________________
b. _______________________________________________________________
II. Equipment List
a. _______________________________________________________________
III. Financial Statement: Day 1 to day 10

TLE 7/8- FOOD PROCESSING

WEEK 8 P a g e 8 | 10
 Day Quantity Product Selling Total Expenses Total
Price Sales Profit
1
2
3
4
5
Total

Analyzing the business that you want to put up is not an easy task. You need to take the
risk for you to succeed but if you are observant and risk taker for sure success is in your hand.

1. During this pandemic, do you think it is good to start a food processing business?
Why? _____________________________________________________________
___________________________________________________________________
___________________________________________________________________
2. How will you make your food processing business successful?
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________

Direction: Carefully read the questions below. Choose the letter of the correct answer.

1. _____________________ is the influential factor that triggers them to buy your product and
service.
A. Customer brand C. Improve your product and service
B. Customer needs D. Reduce the number of support tickets

2. How to write an effective and well-rounded market analysis for your small business plan?
A. Buy your own product C. Spend more money for brochures
B. Conduct market research D. Use difficult business words to understand

3. The first step in performing a market analysis is to know the volume of the potential customer
is also known as __________________________________.
A. Conduct Market Segmentation C. Define your Target Market
B. Determine the Market Size D. Outline Barriers to Entry

4. Every business needs a reason for its customers to buy from them over their competitors, it is
also known as _____________________________.
A. Unified Sales Product C. Unique Sale Proposition
B. Unique Sales Preposition D. Unified Sales Production

TLE 7/8- FOOD PROCESSING

WEEK 8 P a g e 9 | 10
5. How to write an effective and well-rounded market analysis for your small business plan?
A. Buy your own product C. Spend more money for brochures
B. Conduct market research D. Use difficult business words to understand

6. It is a clear guide for building a successful enterprise focused on achieving your personal and
financial goals.
A. Business idea C. Business plan
B. Business Research D. Business venture

7. A best place to outsource the different latest business venture.

A. Home C. School
B. Internet D. Church

8. A business plan which communicates about the latest trends in the market.
A. Market plan C. Market list
B. Market analysis D. Market venture

9. It refers to the number of potential customers.

A. Analysis C. Volume
B. Value D. Weight

10. How should a good businessman gather all the necessary information about the latest
trends in business?
A. Advertisement C. Bulletin Board
B. Announcement D. Research

TLE 7/8- FOOD PROCESSING

WEEK 8 P a g e 10 |
10