MARKET ASPECT
CHAPTER 1 MARKET STUDY
I.
MARKET DESCRIPTION
Foss Coffee will focus its marketing activities on reaching the University students and faculty, people working in offices located close to the coffee shop and on sophisticated teenagers. Since coffee consumption is universal across different income categories and proximi proximity ty to the Universit University y Belt Belt campus campuses es will will provide provide access access to the targeted targeted customer audience. It will also cater to people who want to get their daily cup of great tasting coffee. Such customers vary in ages, the location of our proposed !usiness is at Upper ground floor of S" City "anila near #i$$a %ut. &he lease contract has an option of renewal for three years at a fixed rate that Foss Coffee will execute depending on the financial strength of its !usiness, although the location is close to the University campus means that most of its clientele will !e college students and faculty mem!ers. 'ur market study shows that these are discerning customers that gravitate towards !etter tasting coffee. Furthermore, a lot of college students are pulling off all nighters for their exams and they need caffeine to keep them awake and this will provide a uni(ue possi!ility for !uilding a loyal client !ase. II.
DEM AND
&he demand is !ased on the population of the university students, faculty mem!ers and office workers in the vicinity of )rmita, "anila in the *ational Capital +egion. &his is for a five - year period !eginning /010 to /012. YEAR
HISTORICAL POPULATION POPULATION
/011 /01/ /013 /012 /01-
/0000 30000 20000 -0000 40000
&here is no availa!le data a!out the demand of coffee services for the past years. &herefore, the proponents used assume what the demand was for last five years. &he total pro5ected demand for the past next three years is presented !elow.
YEAR
INCREASE (DECREASE)
PROJECTED DEMAND
/014 /017 /018
-600 2100 -400
/-600 32100 2-400
COMPUTATION:
")&%'9 US)9 :rithmetic Straightline
;c< a = ;i1
Where A = (Yn-Yc) / (N-1) = (2800-1000)/(5-1) = 450 Yc= Initial Value (first year) Yn= inal Value (last year) N= Nu!"er #f years Yi= Value f#r the year $ast
DEMAND 50000 45000 40000 35000 30000
DEMAND
25000 20000 15000 10000 5000 0 2016
III.
2017
2018
SUPPLY
Currently, there exist 33 competitors in the vicinity of )rmita, "anila. &hey have maximum 1-,000 customers per year.
SUPPLY FIGURES DATA DATA YEAR
NUMBER OF COFFEE SHOPS AND STALLS
/011 /01/ /013 /012 /01-
Compu!"o#
10 14 // /8 33
"ethod Used :rithmetic Straightline
;c< a = ;i1
Where A = (Yn-Yc) / (N-1) = (%%-10)/(5-1) = 5&'5 Yc= Initial Value (first year) Yn= inal Value (last year) N= Nu!"er #f years Yi= Value f#r the year $ast
PROJECTED SUPPLY FIGURES TOTAL PROJECTED YEAR
INCREASE (DECREASE)
SUPPLY
/014 /017 /018
2.4 2.4 2.4
12.4 /0.4 /4.4
SUPPL SUP PLY Y ANA A NAL LYSI YSIS S
30 25 20
SU PPLY ANALYSIS ANALYSIS
15 10 5 0 2016
I$.
2017
2018
DEMAN MAND SUPPLY ANAL NALYSIS
Based on statistical data gathered it is proven that there is still a num!er of demands for unsatisfied clients of which even in the inclusion of that company the demand is high. &herefore it is very evident that the current demand cannot !e satisfied !y the present supply.
#)+C)*& YEAR
DEMAND
SUPPLY
D%S GAP
/011
1340
12.4
660
1.0
/01/
1840
/0.4
12
0.66
/013
/340
/4.4
1678
.686
/012
/840
3/.4
/27/
.68888
U*S:&ISFI)9
#ast
/01-
3140
37.4
/747
.688/123
/014
1340
12.4
132-.2
.686/427
/017
1840
/0.4
1863.2
.6886/27
/018
/340
/4.4
/333.2
.6887/88
#ro5ected
$.
GENERAL RAL MA MARKETING PRA PRAC CTICES
Foss Coffee will seek accreditation accreditation from 9epartment 9epartment of &rade and Industry, Industry, Bureau Bureau of Interna Internall +evenue +evenue for taxes, taxes, Intell Intellect ectual ual #roperty #roperty 'ffic 'ffice e of the #hilip #hilippin pines es for the trademark. trademark. Foss Coffee Coffee will also get updates and reviews reviews and other useful useful informatio information n for !etter !usiness operation. Foss Coffee will follow all the rules and regulations and will comply with the standards set !y these organi$ations and agencies to ensure the proper operation of the !usiness. :s to operation and security, the Foss Coffee will secure its necessary re(uirements such as "ayor>s permit, sanitary permit and !uilding permit. Foss Coffee will focus its marketing activities on reaching the University students and facu facult lty y, peop people le worki orking ng in offi office ces s loca locate ted d clos close e to the the univ univer ersi sity ty !elt !elt and and on sophisticated teenagers.
'ur market research shows that these are the customer groups that are most likely to !uy gourmet coffee products. Since gourmet coffee consumption is universal across different income categories and mostly depends on the proximity to the University
campus will provide access to the targeted customer audience. Foss Coffee?s marketing strategy will !e concentrate at getting customers to spend more and come !ack more often. )sta!lishing a loyal customer !ase is of a paramount importance since such customer core will not only generate most of the sales !ut also will provide favoura!le referrals. &he competition comes from several se veral different sources@ Coffee Shops and &ea &ea shops however, none of them have the mission to aspire and give the customers a uni(ue !lend of coffee drinks that customer cu stomer can truly en5oy, afforda!ility and product consistencies. Foss Coffee will consider some factors in (uoting the price. %ence, we will assure to (uote the customer at a reasona!le price. In order to !uild up its client !ase, Foss Coffee will use !anners and fliers and utili$e customer referrals. :t the same time, customer retention programs will !e used to make sure the customers are coming !ack and spending more at the coffee stall. $ I.
PROPOSED MA MARKETING PR PROGRAM RAM
Coffee consumption has shown a steady /.-A growth rate in the #hilippines over the last decade. In 1662, total sales of coffee were approximately 7.- !illion with iced coffee representing 33A or /.- !illion of that. &he retail coffee industry is flourishing in the *ational Capital +egion. &he local climate, with a long rainy season, is very conducive for the consumption of hot nonalcoholic !everages. :t the same time, hot dry summers drive people into cafes to order iced drinks. Further, coffee has really !ecome a part of the lifestyle in the #hilippines. Its discerning coffee drinkers are in favour favour of wellp wellprep repared ared,, strong strong coffee coffee!as !ased ed !everag !everages, es, which which they can consum consume e immediately. &he general trend toward (uality among Filipino consumers definitely plays an important role in the recent growth in iced coffee. #hilippine coffee consumption has shown steady growth, with gourmet coffee having the strongest growth. Coffee drinkers in the #acific are among the most demanding ones. :dditionally, such factors as desire for small indulgencies, for something more exotic and uni(ue provide a good selling
opportunity for coffee stalls. Foss Coffee will strive to !uild a loyal customer !ase !y offering a great tasting coffee located close to the !ustling University !elt in "anila . Foss Coffee will appeal to the university students residing within the vicinity of the university !elt, the faculty mem!ers, office workers who desire a sophisticated great tasting coffee and other teenagers who want to experience a uni(ue taste of coffee. "em!ers of this market dine out fre(uently, approximately three times or more this week. &he market segment is made up of students !etween ages of 1- and 2-. Foss Coffee !aristas will handle the sales transactions. &o speed up the customer c ustomer service, at least two employees will !e servicing clientswhile one employee will !e preparing the customer?s order. Foss Coffee will use !anners and fliers, utili$e customer referrals. :t the same time, customer retention programs will !e used to make sure the customers are coming !ack and spending more at the coffee !ar.
Foss Coffee continues to innovate its product mix to capture more of the market this component of the product mix focuses on what the !usiness offers to customers. :t present, the following are the main categories of Foss Coffee products@ Ice !lended Coffee with 6 different choices of flavour and Ice Blended Cream with 8 different choices of flavour . &his product mix is a result of !usiness innovation. innovation . &he company also has an ongoing product innovation process that aims to offer new products to attract and keep more customers. &he company offers most of its products through Foss Coffee cart stall. &his component of the marketing mix determines the venues at which customers can access the products. &he coffees are priced to give us an attractive margin while at the same time offering value to the consumer. Foss Coffee does not utili$e coupons and discounts !ecause we !elieve that most valua!le customer demographic of daily coffee consumers is not influence !y discount programs or coupons. Foss Coffee will promotes its products mainly through advertising. &his component of the marketing mix refers to the communication strategies used to disseminate information a!out the firm and its products. Foss Coffee will advertise !y giving flyers, appear regularly on popular social media sites, such as face!ook compared to traditional print advertising, this cost effective tactic will allow the !usiness to reach prospects in a highly targeted way. Foss Coffee will also develop a simple we!site which will provide !asic information a!out the !usiness and the menu. Foss coffee will also promote !y giving flyers within the vicinity of the University Campuses. &he product will undergo channels of distri!ution. It will !e in three level "anufacturer D +etailer D Consumer. 'ur product ingredients and other supplies will !e delivered !y the manufacturer to us +etailer then we will then sell this to our customers. $II.
P&o'* S! S!+,
'ur coffees are afforda!le with a price #hp -- pesos for all kinds of flavours of your choice .&he following are the "ain categories of our product. 'n the upper part stated in the picture is Ice !lended coffee with 6 different flavours and each of these coffee !everages is !ased on a shot of espresso which is prepared in the espresso machine
!y forcing heated water through ground coffee at high pressure. Such espresso shots are com!ined with steamed milk andEor other additives like cocoa, caramel, etc., to prepare the espresso!ased !everages and in the lower part of the picture are Ice !lended cream with 8 different flavours filled with whip cream and a minimum shot of caffeine.
S!+, P&o'"o#
PRODUCT
YEAR 1
DESCRIPTION
UNIT
UNIT PRIC E
)spresso
1-00
/-
To!+
₱
37,-00.00
-UANTITI -UANTIT I ES TO BE SOLD
UNIT PRIC E
1000
--
SALES RE$ENUE ₱
--,000.00 9ark "ocha
/300
/-
₱
-7,-00.00
1800
--
₱
66,000.00 ava Chips
/000
/-
₱
-0,000.00
/000
--
₱
110,000.00 Caramel "acchiato Ghite Choco 'reo Coffee elly
/300
/-
₱
-7,-00.00
/000
--
₱
110,000.00 /000
/-
₱
-0,000.00
1800
--
₱
66,000.00 /800
/-
₱
70,000.00
1-00
--
₱
8/,-00.00 Chocolate "int
1000
/-
₱
/-,000.00
-00
--
₱
/7,-00.00 Cookies and Cream Black Forest
1800
/-
₱
2-,000.00
1-00
--
₱
8/,-00.00 //00
/-
₱
--,000.00
/000
--
₱
110,000.00 Chocolate
//00
/-
₱
--,000.00
/000
--
₱
110,000.00 Hanilla
1/00
/-
₱
30,000.00
1000
--
₱
--,000.00 Hanilla 'reo
/100
/-
₱
-/,-00.00
/000
--
₱
110,000.00 Chocolate Cream Chips Straw!erry and Cream Blue!erries and Cream "ix!erries and Cream TOTAL
/-00
/-
₱
4/,-00.00
//00
--
₱
1/1,000.00 //00
/-
₱
--,000.00
/000
--
₱
110,000.00 //00
/-
₱
--,000.00
/000
--
₱
110,000.00 800
/-
₱
/0,000.00
400
--
₱
33,000.00 11//
0//
₱ 23//.//
435//
66/
₱
1204023//.// YEAR 4 DESCRIPTION
UNIT
UNIT PRIC E
TOTAL TOTAL
-UANTIT IES TO BE SOLD
UNIT PRIC E
SALES RE$ENUE
)spresso
//-00
9ark "ocha /-00
/-
//-
/000
/-
1/4,-00.00
₱
//00
--
₱
1/1,000.00
₱
/300
--
₱
1/4,-00.00
₱
/000
--
₱
110,000.00
₱
/000
--
₱
110,000.00
₱
1800
--
₱
66,000.00
₱
/000
--
₱
110,000.00
₱
/-00
--
₱
137,-00.00
/-00
--
₱
137,-00.00
1-00
--
₱
8/,-00.00
/300
--
₱
1/4,-00.00
/100
--
₱
11-,-00.00
//00
--
₱
1/1,000.00
//00
--
₱
1/1,000.00
1600
--
₱
102,-00.00
70,000.00 /-
/800
₱
70,000.00 /-
/000
₱
-0,000.00 /-
/-00
TOTAL
₱
4/,-00.00
/-00 /800
Chocolate Cream Chips Straw!erry and Cream Blue!erries and Cream "ix!erries and Cream
--
-0,000.00 /-
Hanilla 'reo
/300
-7,-00.00 /-
Hanilla
₱
--,000.00
//00
Chocolate
1/4,-00.00
4/,-00.00
/-00
/300
Cookies and Cream Black Forest
₱
4/,-00.00 /-
Chocolate "int
--
4/,-00.00
/-00 Caramel "acchiato Ghite Choco 'reo Coffee elly
/300
4/,-00.00 /-
ava Chips
₱
₱
4/,-00.00 /-
₱
-7,-00.00
/300 /-
₱
4/,-00.00
/-00 /-
₱
70,000.00
/800 /-
₱
-0,000.00
/000
₱
6//
₱126323//.//
01//
5723//.//
PRODUCT DESCRIPTIO N
UNIT
UNIT PRIC E
)spresso
3300
/-
TOTAL TOTAL
₱
YEAR -UANTITIE -UANTITI E S TO BE SOLD
3000
UNIT PRIC E
--
SALES RE$ENUE ₱
8/,-00.00 9ark "ocha
/3300
ava Chips
////-
₱ ₱ ₱ ₱
/-
₱
/800
--
/-
₱
/800
--
/3300
₱
/800
--
3000
₱
/600
--
₱
/800
--
/-
₱
₱
1-2,000.00 /600
--
₱
1-6,-00.00 3000
--
₱
14-,000.00 /800
--
₱
1-2,000.00 /800
--
7-,000.00
3000
₱
1-6,-00.00
7-,000.00 /-
₱
1-2,000.00
8/,-00.00 /-
₱
1-2,000.00
7-,000.00
3000
₱
1-2,000.00
7-,000.00
3000
₱
1-2,000.00
7-,000.00
3000
Chocolate Cream Chips
--
7-,000.00 /-
Hanilla 'reo
/800
7-,000.00
3000
Hanilla
₱
₱
14-,000.00
7-,000.00
3000
Chocolate
--
7-,000.00
3000 Chocolate "int Cookies and Cream Black Forest
3000
8/,-00.00
3000 Caramel "acchiato Ghite Choco 'reo Coffee elly
₱
14-,000.00
₱
1-2,000.00 /800
--
7-,000.00
₱
1-2,000.00
3000 Straw!erry and Cream Blue!erries and Cream "ix!erries and Cream TOTAL
/-
/800
--
7-,000.00
3000 /-
₱
/-
₱
/800
--
₱1244423//.
//
₱
1-2,000.00 /800
7-,000.00
3000
₱
1-2,000.00
7-,000.00
3000
065/ /
₱
--
₱
1-2,000.00 037//
₱423/62///.
//
'ur 'ur sale sales s fore foreca cast st assu assume mes s no chan change ge in cost cost of pric prices es,, whic which h is reas reason ona! a!le le assumption for the last few years. #roximity to the University campus will dictate certain sales seasonality with revenues slightly decreasing during the school vacation periods. &he chart and ta!le !elow outline our pro5ected sales forecast for the next three years .
6000000
5000000
4000000 YEAR YEAR 3 YEAR YEAR 2
3000000
YEAR YEAR 1 2000000
1000000
0 YEAR YEAR 1
$III $III..
YEAR 2
YEAR 3
SYST SYSTEM EM AND FORM FORMS S DES DESIG IGN N
Some marketing forms and records that will !e used are Sales Invoice this document contains the date of sale and information D (uantity, description and price D a!out the goods sold. 9elivery +eceipt this document is the record of the franchisor and delivered supplies and ingredients to our stall this contains the date date of the delivery and information D (uantity, unit, unit price and amount D of the goods delivered to us. +eceiving +eceipt this document is our record
SALES IN$OICE FORM
RECEI$ING RECEIPT FORM
DELI$ERY RECEIPT FORM:
