“A FEASIBILITY STUDY ESTABLISHING A RECREATION CENTER AT PUROK 9

KATANGAWAN, CIRCUMFERENTIAL ROAD, GENERAL SANTOS CITY”

CHAPTER III

MARKETING ASPECT

This chapter discusses the market research and analysis, marketing strategy, pricing

strategy, and promotional strategy.

Market Research Analysis (Intro paragraph)

In this section, the market research and analysis examine the various aspects

influencing marketing success, such as the target market, estimated market share, and level of

competition.

Target Market

(Discuss directly who are the target market, Demographic and the psychographic aspect of the

target clients. Discuss the secondary target market. Present a table of computation for the

following assumptions: Target Market, Estimated Market Share, demand and Supply,

Percentage of Willing Respondents, Market Demand, Average Frequency)

The target market of the business will primarily be the residents of General Santos

City notably the Brgy. Conel, Katangawan, Lagao, Ligaya, Buayan, Apopong, Bula,

Mabuhay and San Isidro. Specifically, ages belonging to 15-39, or those under "young

adults" and "adults" categories will be the central focus for marketing. These markets are

young adults who are more likely to seek adventure and thrill and relaxation thro ugh

various activities, and yield health benefits to them.

The secondary target market are those residing in nearby municipalities and cities

in the SOCKSSARGEN area with age ranging from 15-39 years old.

Demand and Supply (Present the total demand as to quantity unit)

 In this section, the researcher discussed the included items undertaken by demand.

It will consist of the business target market, the past demand pattern evaluations, and the

demand and supply projections. The researcher would use demand and supply analysis to

determine how the connection between demand and supply could fulfill customer

satisfaction while minimizing opportunity cost. The demand supply analysis is shown in the

table below. The proposed business in General Santos City has 4 direct competitors.

Demand Projection (Total Demand presented as to quantity)

The demand projection discusses the industry’s potential demand, which is

protected by the company. The table below summarizes the frequency of the

market.

Table ____

Estimated Demand

Table 4

Market Demand

MARKET DEMAND

Adjusted Market Size 89,119

Multiplied by: Average Frequency 2

Total Market Demand for PlayZone 178,238

The table above shows the calculation in getting the total market demand of

the proposed business. The adjusted market size is computed shown in the table 3

of the study with 89,119 which is to be multiplied by the average frequency in a year

.ads666+which will be shown on the next table. The total market demand is the
 totalled to arrive at the total market demand of 178,238. The total demand will be

used in getting the market share of the business considering its direct competitors.

Supply Projection (Capacity of the existing players to supply)

Supply of the products will be based on the number of clients catered by the

businesses. The researcher will use the monthly customers handled in the business

that will help to identify the estimated annual capacity of the business. Determining

the supply of the competitors is significant since it will determine the free market of

the proposed business.

The table below shows the summarized total annual supply of competitor of

the business.

Table 9

Supplies from Direct Existing Players

SUPPLIES FROM DIRECT COMPETITORS

NO. OF WORKING ANNUAL

EXISTING AVERAGE NO. OF SUPPLY

MONTHS IN A

BUSINESSES CUSTOMERS PER MONTH

YEAR

Tokyok's Bowling

3,000 12 36,000

Lanes

TOTAL SUPPLIES FROM Existing Players 36,000

The proposed business has a one (1) direct competitor. The average

number of customers catered in a month is shown in the second column. The total

number of working months in a year, which is twelve, is the next factor to consider.
 Finally, the researcher multiplies the average number of customers each month by

the annual supply of the competitor.

Table 10

Demand and Supply Analysis

DEMAND AND SUPPLY ANALYSIS

PARTICULARS TOTAL

TOTAL DEMAND 178,238

LESS:TOTAL SUPPLY FROM existing Players

36,000

FREE MARKET 142,328

The table shows the free market figure of 142,328 which is computed by

subtracting the total supply from direct competitors to the total demand.

Frequency (Present the result of research conducted from target market – checklist)

The table below shows the average frequency per activity of the proposed business

in a year. The researcher gathered all of the data and information from the Google form

which serves as the survey questionnaire. The frequency in a year was multiplied by the

number of willing respondents to arrive at an approximate number for the total frequency in
 Table 5

Average Annual Frequency

WILLING RESPONDENTS

Bowling Roller skating Rock

Sky Zone
Zone rink climbing

FREQUENCY

Year

1 24 24 21 21

2 23 17 16 22

3 6 9 9 8

4 2 3 1 3

5 2 1 3 1

TOTAL 57 54 50 55

TOTAL FREQUENCY IN A YEAR

Bowling Roller skating Rock

Sky Zone
Zone rink climbing

FREQUENCY

Year

1 24 24 21 21

2 46 34 32 44

3 18 27 27 24

4 12 12 4 12

5 10 5 15 5

TOTAL 110 102 99 106

Divide by: Number of

57 54 50 55
responses

Average frequency per 2 2 2 2

activity
 *based on the survey conducted, population with regard to gender and age of selected

Barangays in General Santos City

Estimated Market Share (Discuss directly who are the target market, their demographic and

the psychographic aspect of the target clients.

Through the use of the given population, the annual estimated customers of the

company will be determined. It would display the amount of people who will use the

business's services by taking into account variables like age, poverty rate, and margin of

error. Census have provided the total population of the Barangay on General Santos City

year 2021.

Table 3

Estimated Market Size

In table 3, it shows the computation of the proposed business target market size. The

researcher has indicates the total population by age bracket 2021 15-39 of the chosen

Barangays, Barangay Apopong, Buayan, Bula, Conel, Katangawan, Lagao, Ligaya, Mabuhay,

and San Isidro of General Santos City and recorded a total population of 132,398 as of the year

2021. Through the survey that was conducted online with 100 respondents, number of willing

respondents was identified. A total of 88 respondents are willing to patronize the proposed

business which implies that the business will be profitable to establish at this time and given its
new and unique way of experience to the respondents. In addition, the researcher used a 10%

margin of error to calculate an adjusted market size of 89,119.

Market Share

Estimated market share is the approximate percentage of an industry that is earned

by a particular business over a specified time period. The estimated market share

represents the percentage of the proposed business’ market sales. It is computed by

dividing the annual capacity to the free market. The main point is the higher the market

share, the better. It is because it only shows that a specific entity is growing and leading.

Table 11

Estimated Market Share

ESTIMATED MARKET SHARE

PARTICULARS TOTAL

ESTIMATED ANNUAL CAPACITY 19,166

DIVIDED BY:FREE MARKET 142,328

Estimated Market Shares Percentage 13.46%

Note: The estimated market share is limited to the free market if annual capacity is greater

than the free market. Therefore, the market share is 100%.

Capacity of the Business

This section assesses the proposed business’s ability to execute a venture by looking at

its capabilities and resources, such as physical infrastructure, financial stability, people

resources, and operational processes (Turco, 2023).

Projected Practical Capacity

The table below summarizes the project’s estimated annual capacity and its

computed. For practical capacity rate, the proposed business will use 50% as for indoor

activities (SEC. 4 EO2, S. 2022). The table summarizes the overall annual capacity of the
proposed business and its facilities whichever is lower. The porposed venture is a

multifaceted recreational facility which is presented in the table.

Table 8

Projected Annual Capacity

PROJECTED ANNUAL CAPACITY

Operating Minutes per Day 660

Divided by:

Average minutes per customers. 10

Total Number of customers per Day 66

Multiply by:

Annual Operating Days 363

Total Number of customer per year 23,958

Multiply by:

Practical Capacity Rate 80%

Total Estimated Annual Capacity 19,166

The proposed business's annual capacity is estimated in the table above.

The proposed business has 11 hours of operation which is equivalent to 660

operating minutes. For the overall capacity of the facility was calculated. With each

customers will consume average of 10 minutes per accommodation. After getting

the total number of orders per day, it will be multiplied to 363 operating days in a

year excluding two holidays (Holy Thursday and Good Friday). The result is now

the annual capacity that will be multiplied to the 80% practical rate to get the

estimated annual capacity per activity which is then to be totaled to get the total

annual capacity of the recreation center. In order to keep data conservative, this is

used to calculate annual capacity.

Intensity of Competition (Discuss the intensity of competition by identifying the level of

competition whether low, medium or high as identified during the conduct of analysis of the

industry or based on the data from the City Licensing Division on the total number of players.

Cite criteria of intensity of competition. Cite the source of data presented.)

The growth of recreation facilities in General Santos City has intensified competition,

forcing businesses to differentiate and attract customers. Competition is low in Barangay

Katangawan because there is only one registered recreation business (City Licensing Division,

2023).

Marketing Strategy (Brief introduction)

This section describes the primary marketing strategies and tactics that will be used to

attract and engage the local community. With the city's diversified market, a well-thought-out

marketing plan is essential for establishing the recreation area as a favored leisure and

entertainment destination.

Sales and Distribution Strategy / Service Strategy

The proposed Recreation Center in General Santos City must effectively market

and deliver services to meet the target market’s demands, focusing on service strategies

that consider essential components and factors.

Clients of the proposed firm will practice direct selling of services offered. No

channel or agents will be used. Clients will directly access the service in face-to-face

transactions via walk-in transactions. An online direct transaction will also be catered by

contacting the suggested business's Web Page or via landline and cellular phones. The

organization will be contacted directly.

Pricing Strategy

Pricing strategy aids in finding the price point at which the proposed business may

optimize profits on product or service revenue while pleasing and satisfying prospective

clients.
Service Rate

Different services will be priced using time-based pricing and dynamic pricing be

considered due to its different services offered. Time-based pricing, also known as time-of-

use or dynamic pricing, is a pricing strategy where a product's price fluctuates based on

usage or purchase, aiming to encourage customers to reduce consumption during low

demand hours or optimize resource usage during peak periods (Turco, 2023).

Dynamic pricing in the recreation industry allows businesses to adjust service rates

based on factors like demand, time, and customer behavior, allowing for optimal income

optimization by charging higher prices during peak hours and offering discounts off-peak

(Turco, 2023).

Customers are charged a varying amount for recreational services, depending on

the chosen facility. In the case of other packages, a relatively cheap and fair pricing in

comparison to the competition will be set in order to attract potential clients.

The prices of each products are summarized in the table shown below.

Pricing Structure

In a service industry, such as a recreation facility, a pricing structure entails setting

prices for various services, activities, and amenities provided to customers. A based

pricing structure, membership program, package deals or group events will be the pricing

structure of the proposed venture.

 Table 12 Price List

SERVICE RATES

Entrance Fee ₱40.00

FACILITIES

Rink Fun Zone ( inclusions- roller skater ₱250 per hour

shoes, gears, and helmet)

Bowling Zone (max of 6 players) ₱350 per scoresheet

Sky Zone (inclusion jump socks) ₱300 per head

Rock Climbing (per head) ₱250 per hour

Snack bar (food stalls) ₱9,000 monthly rent

Advertising and Sales Promotion

This section outlines strategies to be adopted for establishing the proposed business

recognition connecting with target markets, to build loyal client base, vital for the feasibility

analysis of the proposed business in the recreation center industry. The proposed venture will

utilize various sales and promotion tools in order to reach the market and establish popularity of

its existence.

Advertising

Social Media Platform. The researcher recognized the increasing influence

of different social media platforms in which people can share their reviews and

opinions to various subjects. A creation of a Facebook page will be executed and

 on this page, the entity’s business name, location, contact information, services,

prices, and promotions will be described and updated daily to provide information to

target markets. This will also be used to accommodate customers inquiring the

services and to cater the questions regarding the business where they can also

book for reservations. The proposed business will boost through Facebook 3

months before the business operation and will continue up to one year of business

operation.

Tarpaulin. Traditional advertisements will also be utilized such as tarpaulin.

The following information will be included in the tarpaulin ads: the entity's business

name, location, contact information, services, prices, and promotions will be

described and updated daily to deliver information to target markets. This will be

installed in areas where many people can view it, such as highways and busy

streets. The proposed business will hang a 3 by 5 size tarpaulin and will hang in 20

Barangays in General Santos City and in 10 neighboring cities and municipalities.

Promotion by Content Creators. To enhance visibility and reach of the

advertisement, the proposed venture will implement advertisement through content

creators or vloggers. The proposed business will be advertised by the chosen

creator(s) where they will promote the business through social media with their

choice of content. The same content will be promoted by the creators through audio

visual advertisements highlighting the entity's business name, location, contact

information, services, prices, and promotion.

Sales Promotion

Seasonal Promotions: During particular seasons or holidays, the proposed venture will

provide discounts or special packages. For example, throughout the summer and during

holidays, such as packages. A barkada package, corporate group package, and or family
 package will be designed to provide seasonal promotions to target markets. The seasonal

promo can be availed from March to May, 2024.

Off-Peak Hour Discounts: The proposed venture will encourage target clients to avail

the services during less congested times, provide discounts during off-peak hours, such as

weekday mornings or early afternoons. A discount of 5 percent will be granted to those clients

who will avail the promo.

Group Discounts: The proposed venture will provide group discounts to organizations

such as schools, private and government entities, and corporate team-building events. There

are packages available that include a variety of activities or services at a discounted price of

10% per service. The promo will be implemented during lean months like June to August,

2024.

Customer Loyalty Program: Loyal customers will also benefit from a customer loyalty

program that provides points or discounts based on their frequency of visits. A 5 percent

discounts will be granted to loyal clients based on the criteria.

Presented in tables 13 to 14 are the advertising and sales and promotions plan of the

proposed business.

Table 13

Advertising

Advertising Size / reach Amount Quantity/ Total Amount

Activity Frequency / Time
Frame

Social Media (FB) Mindanao wide 600.00 12 times 9, 000.00

Tarpaulin 3 x 5 sq foot 700.00 30 pcs per year 21,000.00

Content Creator / Mindanao wide 6 months airing
Vlog 5,000.00 contract P10,000.00
2 x a year

Table 14

Sales Promotions

Type of Sales Frequency / Time

Promotion Regular Price Discount Price Frame Total Discounted
Amount
Seasonal Determine the
Promotions xxx.xx discount March to May
percentage /
price
Off-Peak Hour
Discounts xxx.xx 5 percent

Group Discounts 10 percent June to August

xxx.xx
Customer Loyalty June to December
Program xxx.xx 5 percent