Marketing Study

A FEASIBILITY STUDY ON PINOYFLAVORED PIZZA

MARKETING STUDY

MARKETING STUDY Page 74


CHAPTER 2 MARKETING STUDY

Condu Conducti cting ng marke markett feasib feasibili ility ty and compe competit titive ive intell intellige igence nce marke marketin ting g research early in the development cycle can provide a "reality check" on your idea as well as help define product development to ensure its appeal for your customers. This type of market research is used to determine:

“How much of a demand is there for the product or service you are considering?”

Marketing research is defined as “a systematic gathering, recording, and analyzing analyzing of data problems relating to the financial, production, production, and marketing of goods goods and services services to help help decision decision-mak -making ing and control”. control”. Any market study study seeks seeks to bring bring more more orderl orderline iness ss for bette betterr guida guidanc nce e in solv solving ing probl problems ems in financial, production and marketing.



CHAPTER 2 MARKETING STUDY

Condu Conducti cting ng marke markett feasib feasibili ility ty and compe competit titive ive intell intellige igence nce marke marketin ting g research early in the development cycle can provide a "reality check" on your idea as well as help define product development to ensure its appeal for your customers. This type of market research is used to determine:

“How much of a demand is there for the product or service you are considering?”

Marketing research is defined as “a systematic gathering, recording, and analyzing analyzing of data problems relating to the financial, production, production, and marketing of goods goods and services services to help help decision decision-mak -making ing and control”. control”. Any market study study seeks seeks to bring bring more more orderl orderline iness ss for bette betterr guida guidanc nce e in solv solving ing probl problems ems in financial, production and marketing.



GENERAL OBJECTIVE

The general objective of the Filipizza market study is to obtain useful information necessary for the launching of our new and innovated “ Filipizza” in a variety of markets, pleasing the diverse taste of all Filipinos.

SPECIFIC OBJECTIVES

•

To ensure that the business is in touch with the market

•

To find out new markets for the product

•

To increase sales and reduce costs in its operations

•

To measure the sale trends and sales potential

•

To determine the factors influencing the purchasing behavior of the market

•

To better adapt the product to the ongoing demand for pizza so that price will be based on demand

•

To ensure the effectiveness effectiveness of the promotion strategy used and determine other possible strategies

•

To guarantee that the business will benefit not only the customers and the company, but the whole society



Market Study Methodology

SCOPE AND LIMITATIONS

This study about the feasibility of Filipizza business business that will be located at Barangay Kaypian in San Jose Del Monte covers the following:



Respondents should belong to the age bracket of 13 – 50 years

old, male and female, either a student, employed or unemployed and are all residents of Barangay Kaypian, San Jose Del Monte.

SAMPLING DESIGN

The researchers used a Simple Random Sampling Method in gathering infor informat matio ion n from from the targe targett marke market. t. In this this tech techniq nique ue,, each each membe memberr of the the population population has an equal chance of being selected as subject. The entire process of sampling is done in a single step with each subject selected independently of the other members of the population population..



SAMPLE SIZE DETERMINATION

In determining our sample size for the proposed project, a Slovin’s Formula is being used.

Slovin’s Formula: n=

N ____________ 1 + Ne 2

Where:

n= sample size N= the total population e= margin of error (.05)

QUESTIONNAIRE FORMULATION

In orde orderr to have have an acces access s on the the pert pertine inent nt infor informat mation ion and and gathe gather r important data about customer’s taste and preferences when it comes to pizza, the researchers agreed to use Survey Questionnaires. There are two survey questionnaires made, one is for the determining the target market population while the other is to determine the preferences of the target market wi\hen it comes comes to pizza pizzas. s. In the seco second nd quest question ionna naire ire,, the the group group prov provide ided d ten (10) (10) questions, questions, simple and direct to the point. Questions are all itemized consisting of MARKETING STUDY Page 74


both open-ended and close-ended mode of responses. By these questions, the group will be able to determine the demand for the product. RETRIEVAL OF QUESTIONNAIRES

The researchers conducted a survey by distributing questionnaires and survey forms in different areas around our location comprising the target market of the proposed business. Retrieval of the following questionnaires did not pose a problem to the researchers because questionnaires were immediately collected after the respondents were able to finish answering.

SURVEY ANALYSIS DESIGN

A Descriptive Method of Research is being used by the group in gathering, classifying and analyzing data. As the term suggests, it describes the characteristics, preferences and the different nature of consumers and prospective buyers. It is concerned with collection, organization and construction of data in a very understandable manner.



TALLY OF QUESTIONNAIRES

The questions are answerable through choosing their answer on the multiple choices.

Gender

# of Respondents

Percentage (%)

Male

183

46.21

Female

213

53.79

TOTAL

396

100

Table 2: CUSTOMERS PROFILE

Exhibit 1: CUSTOMERS' PROFILE

Among the respondents who interestedly answered the questionnaires given by the proponents, 183 of them are Male and 213 are Female. This gives a 46% and a 54% for the customer profile respectively. MARKETING STUDY Page 74


Age Group

Population

Distribution

1 - 12

9

2.27

13 - 19

225

56.82

20 - 35

107

27.02

36 - 50

33

8.33

51 up

22

5.56

TOTAL

396

100

Table 3: RESPONDENTS’ AGES

Exhibit 2: RESPONDENTS' AGES

Respondents for the given questionnaire are classified into several age brackets. Nine (9) of them equivalent to 2.27% are 1-12 yrs. Old, 225 which is equivalent to 56.82% ranges from 13-19 yrs. Old, 20-35 yrs. old ranges from 2035 which represents 27.02% of the total number of respondents, 8.33% ranges from 36-50 yrs. old and has total number of 33 respondents, 5.56% of them are 51 and above and has total number of 22 respondents for a total of 100%. MARKETING STUDY Page 74


1.) Do you eat pizza? # of Respondents

Percentage (%)

Yes

393

99.24

No

3

.76

Total

396

100

Table 4: PERCENTAGE EATING AND NOT EATING PIZZA (Question #1 Statistics)

Exhibit 3: PERCENTAGE EATING AND NOT EATING PIZZA (Question #1 Exhibit)

Most of the respondents have eaten pizza. There are 393 which is 99% of the total 396 respondents and only 3 respondents which is only 1% have not yet eaten pizza/doesn’t consider eating pizza at all.

2.) How often do you eat pizza? MARKETING STUDY Page 74


# of Respondents

Percentage (%)

Daily

4

1.01

Weekly

37

9.34

Occasionally

317

80.05

Others

38

9.60

Total

396

100

Table 5: FREQUENCY OF EATING PIZZA (Question #2 Statistics)

Exhibit 4: FREQUENCY OF EATING PIZZA (Question #2 Exhibit) On the question “how often does the respondent buy pizza?” 1.01% or 4 of the respondents buy pizza daily, on a weekly basis, 9.34% of them or 37 people buy pizza, 9.60% are not sure how often they include pizza on their menu list this is equivalent to 38 people, and an outstanding 80.05% said that they only buy pizza along with occasions this is equivalent to 317 respondents. MARKETING STUDY Page 74


3.) Have you tried pizza topped with Filipino dishes?

# of Respondents

Percentage (%)

Yes

172

43.43

No

224

56.57

Total

396

100

Table 6: PERCENTAGE WHO HAVE AND HAVEN'T TRIED EATING FILIPINO PIZZA (Question #3 Statistics)

Exhibit 5: PERCENTAGE WHO HAVE AND HAVEN'T TRIED EATING FILIPINO PIZZA (Question #3 Exhibit)

According to the survey, 56.57% of the respondents have not yet tried eating pizza with Filipino toppings this is equivalent to 224 people and 43.43% have tried eating this is equivalent to 172 people. MARKETING STUDY Page 74


4.) (For those who answered Yes above) Among the flavors you have tried, what is your MOST favorite? # of Respondents

Percentage (%)

Sisig

59

34.30

Adobo

36

20.93

Lechon

47

27.33

Laing

10

5.81

Others

20

11.63

Total

172

100

Table 7: PREFERENCE AMONG EXISTING FILIPINO PIZZA FLAVORS (Question #4 Statistics)



Exhibit 6: PREFERENCE AMONG EXISTING FILIPINO PIZZA FLAVORS (Question #4 Exhibit)

Among the respondents who tried Filipino topped pizzas, 59 of them or 34.30% have tried sisig, 20.93% or 36 of them have tried adobo, 47 or 27.33% have tried lechon, only 10% have tried laing topped to pizza and 20 respondents answered they already have tried other flavors not mentioned.

5.) What factor do you MOST consider in choosing a pizza to eat?

Flavor

# of Respondents

Percentage (%)

247

62.37



Cost

66

16.67

Size ( Thick and Thin)

62

15.66

Others

21

5.30

Total

396

100

Table 8: MOST CONSIDERED FACTOR IN CHOOSING PIZZA TO EAT (Question #5 Statistics)

Exhibit 7: MOST CONSIDERED FACTOR IN CHOOSING PIZZA TO EAT (Question #5 Exhibit)

As the survey suggests, flavor is the most considered factor of the respondents in choosing a pizza to eat (247 respondents or 62.37%). Next on the list is the cost which is preferred by the 66 respondents or the 16.67%. Size or the thickness or thinness of a pizza comprises about 15.66% or 62 respondents. The rest (5.30% or 21 respondents) answered they prefer other factors like the aura and sanitation of the place and the people they are with.



6.) Are you willing to patronize our store if we’re going to introduce new delicious Filipino dishes as toppings to freshly-baked pizza? # of Respondents

Percentage

Yes

388

97.98

No

8

2.02

Total

396

100

Table 9: WILLINGNESS TO TRY NEW FILIPINO PIZZA FLAVORS (Question #6 Statistics)

Exhibit 8: WILLINGNESS TO TRY NEW FILIPINO PIZZA FLAVORS (Question #6 Exhibit) The survey shows that 97.98% of the respondents (388 respondents) are willing to try new Filipino pizza flavors if we will be introducing some on the market. While, about 2.02% or 8 respondents answered “No” because they do not eat prefer pizzas topped with Filipino flavors or they are already satisfied with the existing Italian pizza flavors. MARKETING STUDY Page 74


7.) What Filipino dish will you want us to use as new toppings to your pizza? # of Respondents

Percentage (%)

Adobong Pusit

70

18.04

Caldereta

116

29.90

Bicol Express

140

36.08

Others

62

15.98

Total

388

100

Table 10: PREFERENCE FOR PIZZA TOPPINGS (Question #7 Statistics)



Exhibit 9: PREFERENCE FOR PIZZA TOPPINGS (Question #7 Exhibit)

According to the survey, Bicol Express is the most preferred toppings for pizza by the respondents totaling to about 36.08% or 140 respondents. Next, Caldereta is preferred by the 29.90% or 116 respondents. Adobong Pusit is the third on the list which covers about 18.04% or 70 respondents. The rest answered other toppings which comprises about 15.98% or 62 respondents.

8.) How much are you willing to pay for a slice? # of Respondents

Percentage (%)

20-30php

264

68.04

31-40php

79

20.36

41php and above

45

11.60



Total

388

100

Table 11: BUDGET FOR A SLICE OF PIZZA (Question #8 Statitics)

Exhibit 10: BUDGET FOR A SLICE OF PIZZA (Question #8 Exhibit) As shown on the table, 68.04% of the respondents or 264 respondents want a slice of Filipino pizza to cost about 20-30 pesos. Then, about 20.36% or 79 respondents want to price it for about 31-40 pesos per slice. The remaining 11.60% or 45 respondents want a slice of pizza to cost as much as 41 pesos above. 9.) Have you eaten malunggay pandesal?

# of Respondents

Percentage (%)

Yes

292

73.74

No

104

26.26

Total

396

100



Table 12: PERCENTAGE WHO HAVE AND HAVEN'T TRIED MALUNGGAY PANDESAL (Question #8 Statistics)

Exhibit 11: PERCENTAGE WHO HAVE AND HAVEN'T TRIED MALUNGGAY PANDESAL (Question #9 Exhibit)

According to the survey, 292 respondents or 73.74% have already tried eating malunggay pandesal while 104 respondents or 26.26% have not yet tried to eat one. This question is necessary to know about the respondents’ acceptance if we are going to flavor our dough with healthy malunggay. 10.) (For those who answered Yes above) Why do you like it? # of Respondents

Percentage (%)

Good Taste

77

26.37

Good for the health

168

57.53

Fond of eating pandesal

32

10.96

Others

15

5.14

Total

292

100



Table 13: REASONS FOR EATING MALUNGGAY PANDESAL (Question #10 Statistics)

Exhibit 12: REASONS FOR EATING MALUNGGAY PANDESAL (Question #10 Exhibit) The table shows that about 57.53% or 168 respondents like malunggay pandesal because it is good for the health. Then, about 26.37% or 77 respondents like it because it has good taste. Thirty-two (32) respondents or 10.96% like it because they are fond of eating pandesal. The remaining 5.14% or 15 respondents have other reasons like for change and others.

SUMMARY OF MARKET SURVEY ANALYSIS RESULTS

As for demand to expect by the proponents coming from the target market, the respondents who represent the whole population happily answered that for sure they will be trying the product offered by the store basically because MARKETING STUDY Page 74


of its very original concept being one that we Filipinos can be so proud of. The survey shows that almost 100% of the total number of respondents which is 396, answered positively. Undeniably the potential of the business proposal exceeds what the proponents only think of because of the feedback they are getting from the target market. Even without starting the business itself, people in the area started asking questions and dug their curiosity on the product alone. This inhibits the capacity of the business to grow more than what the proponents think and run after the pioneering businesses on the same industry in just a short period of time.

Market Research

DESCRIPTION OF THE TARGET MARKET

Filipizza’s target market are the local residents of Barangay Kaypian in San Jose Del Monte, Bulacan. Filipizza serves to people who wanted to get a MARKETING STUDY Page 74


traditional twist to the usual European pizza introduced by foreign countries. Our customers also vary in age ranging from 13 to 50 years old. Also, since our location is near the newly-built Starmall means that most of our customers will be the travelers who visit the mall and the local people. Major customers are expected to be the students and the teaching and non-teaching school staffs from nearby schools and universities. Many students arrange pizza treat parties in pizza stores during their birthdays and other celebrations. At the same time, they may prefer ordering pizza during lunch breaks and snack times instead of eating heavy rice meals. Secondary customers are expected to be the usual mall-goers either employed or unemployed, with a taste for Filipino pizza since there is only a single pizza competitor located inside the mall.

DETERMINING THE TARGET POPULATION SIZE

•

Total Population of the Target Location

The proposed project’s target location is in Barangay Kaypian in the City of San Jose Del Monte, Bulacan. In 2007, it was considered the third most MARKETING STUDY Page 74


populated barangay with a total population of 26,308. It has an annual population growth rate of 5%. In addition to the total residents of the barangay, our project also covers the schools located around the place.

Table 14: TOTAL POPULATION OF BARANGAY KAYPIAN FROM 2007-2012 YEAR

RESIDENTS

STUDENTS (From the nearby schools)

TOTAL POPULATION

2007

26,308

-------

-------

2008

27,623

2,603

30,226

2009

29,004

2,901

31,905

2010

30,454

3,233

33,687

2011

31,977

3,603

35,580

2012

33,576

4,015

37,591

*

Source: National Statistics Office

*Residents: 5% growth rate annually (from NSO) *Students: 11.44% growth rate annually (based on interviews conducted)

Using Slovin’s Formula:

Given that the total population for 2012 is 37,591…

n

=

37,591 _______________ MARKETING STUDY Page 74


1 + (37,591)(.05) 2

=

37,591 _______________ 1 + (37,591)(.0025)

n

•

= 395.79 or 396 respondents

Age Survey Analysis

Since there is no statistical data recorded in NSO or in the barangay hall about the age segmentation of the residents of Barangay Kaypian, our group decided to conduct a survey to determine our target market population from age 13 to 50. Using the 396 respondents, we come up with our total target market population of 364 or 92% of the total population of Barangay Kaypian.



AGE GROUP

RESPONDENTS

PERCENTAGE

1-12

9

2%

13-19

225

57%

20-35

107

27%

36-50

33

8%

51 and above

22

6%

TOTAL

396

100%

Table 15: POPULATION AGE SEGMENTATION

Exhibit 13: POPULATION AGE SEGMENTATION Interpretation: MARKETING STUDY Page 74


Results show that majority of the respondents are 13 to 19 years old (57%). Others are 20 to 35 years old (27%), 36 to 50 years old (8%), 51 years old and above (6%) and 1 to 12 years old (2%). Totaling the percentages of the people ages 13-50 will give us a target market population percentage of 92%. DEMAND ANALYSIS

For every business, it is very essential to know the demand in order to answer customers’ needs and wants. For Filipizza, knowing our demand will help us to determine the trend for our products. Analyzing the demand thoroughly will give the projection of the total number of quantity of each product that we are going to produce daily, weekly, monthly and annually.

•

Total Demand Growth Pattern

Using the 92% target market population percentage (from 13 to 50 years old) multiplied by the total population from year 2008 to 2012 will give us the annual past demand growth of Barangay Kaypian.

Table 16: TOTAL DEMAND GROWTH PATTERN

YEAR

TOTAL POPULATION

2008

30,226

TARGET POPULATION PERCENTAGE

DEMAND GROWTH PATTERN

92% 27,808 MARKETING STUDY Page 74


*

•

2009

31,905

92%

29,353

2010

33,687

92%

30,992

2011

35,580

92%

32,734

2012

37,591

92%

34,584

Demand Growth Pattern = Total Population x 92% target population

Historical Demand

… Using Arithmetic Straight Line Method:

Yc

=

A + (Yi – 1) Yn – Yc NA- 1

Where:

Yi - 1

= value of the last year

Yc

= initial value (first year)

Yn

= final value (last year)

N

= number of years covered

A

= constant increase in demand

= average increase

Solution: Given that Yn = 34,584, Yc = 27,808 and N = 5 years… A

=

34,584 – 27,808 ______________ 5–1

=

6,776 MARKETING STUDY Page 74


_____________ 4 A

=

1,694

In order to get the annual past demands (Yc) from year 2008 – 2012, the Arithmetic Straight Line Method suggests that the total past demand for the first year will be subtracted to the total demand of the last year ( Yn - Yc) and divide it with the number of years ( Yn - Yc / N-1). Then, the answer (A) will be added to the value of the last year (Yi – 1) in order to get the annual past demands.

YEAR

Y

A

Yi - 1

Yc

2008

30,226

------

------

------

2009

31,905

1,694

30,226

31,920

2010

33,687

1,694

31,920

33,614

2011

35,580

1,694

33,614

35,308

2012

37,591

1,694

35,308

37,002

Table 17: HISTORICAL DEMAND



•

Projected Demand

YEAR

A

Yi - 1

Yc

2013

1,694

37,591

39,285

2014

1,694

39,285

40,979

2015

1,694

40,979

42,673

2016

1,694

42,673

44,367

2017

1,694

44,367

46,061

Table 18: PROJECTED DEMAND



Exhibit 14: PROJECTED DEMAND (FROM 2013 – 2017) SUPPLY ANALYSIS

•

Historical Supply

In our location, there are already two (2) pizza stores which were established before Filipizza. However, Chansel pizza started its operations only last May while Patricia’s pizza last June of the present year, 2012. That is the reason why our historical supply covers only for eight (8) months for Chansel Pizza and seven (7) for Patricia’s pizza. MARKETING STUDY Page 74


Table 19: HISTORICAL SUPPLY PIZZA SUPPLY 2012 (per tray)

COMPETITOR

For a Day

For a Month

For the year 2012

80

2,400

19,200

70

2,100

14,700

Chansel Pizza Patricia’s Pizza

Historical Supply for the year 2012 *

33,900

Based on the interviews conducted on both competitors.

* Chansel Pizza (from May – December) * Patricia’s Pizza (from June – December)

•

Projected Supply

In order to determine the projected supply of pizza for the year 2013, an increase of 3% will be added to the historical supply for the year 2012. Thus, multiplying 33,900 by 3% and adding the product to 33,900 will give us 34,917. Applying the same percentage to the following years will give us the projected pizza supply for five (5) consecutive years.



Table 20: PROJECTED SUPPLY YEAR

2013

2014

2015

2016

2017

PROJECTED SUPPLY

34,917

35,965

37,044

38,155

39,300

* With 3% projected increase in supply annually (based on interviews conducted)

Exhibit 15: PROJECTED SUPPLY (FROM 2013 -2017) DEMAND-SUPPLY GAP ANALYSIS

•

Historical Demand-Supply Gap Analysis

YEAR

HISTORICAL HISTORICAL DEMAND SUPPLY

DEMANDSUPPLY GAP

PERCENTAGE UNSATISFIED

2008

------

------

------

------

2009

31,920

------

31,920

100%



2010

33,614

------

33,614

100%

2011

35,308

------

35,308

100%

2012

37,002

33,900

3,102

8.38%

Table 21: HISTORICAL DEMAND-SUPPLY GAP ANALYSIS * Percentage Unsatisfied = Demand-Supply Gap / Historical Demand

Exhibit 16: HISTORICAL DEMAND-SUPPLY GAP ANALYSIS •

Projected Demand-Supply Gap Analysis

Knowing the projected demand-supply gap is necessary in determining

Filipizza’s market share. The gap or the unsatisfied market is obtained by subtracting the projected supply from the projected demand. It also shows the



percentage of unsatisfied market which is equal to the demand-supply gap divided by historical demand.

YEAR

PROJECTE D DEMAND

PROJECTE D SUPPLY

DEMAND AND SUPPLY GAP

2013

39,285

34,917

4,368

11.12%

2014

40,979

35,965

5,014

12.24%

2015

42,673

37,044

5,629

13.19%

2016

44,367

38,155

6,212

14%

2017

46,061

39,300

6,761

14.68%

PERCENTAGE UNSATISFIED

Table 22: PROJECTED DEMAND-SUPPLY GAP ANALYSIS

Interpretation:

As the table suggests, the projected gap between and supply increases as the time goes by. Similarly, the percentage of unsatisfied needs of the target market increases as well. This gap between demand and supply determines the extent to which Filipizza has to satisfy. MARKETING STUDY Page 74


Exhibit 17: PROJECTED DEMAND-SUPPLY GAP ANALYSIS

STATUS OF COMPETITION

“Who are Filipizza’s competitors?”

In the proposed project’s target area, there are two existing primary competitors selling pizzas and they only opened a few months ago since the location was new for establishing business entities. Residents in the location are still not familiar or aware with the competitor’s operations even with its existence. Most likely the proponents’ idea can still cope up for the months the competitor MARKETING STUDY Page 74


has taken and get its lead. At the same time, we also considered secondary competitors selling substitute products in our analysis of competition in the area.

Table 23: COMPETITION ANALYSIS

COMPETITOR

OPERATING HOURS

ESTIMATED DAILY CUSTOMERS

Primary Competitors

Chansel Pizza

10 am – 9 pm

40

Patricia’s Pizza

10 am – 9 pm

30

Secondary Competitors

Denise Pares and Grill

10 am – 9 pm

50

Sisig Hooray

10 am – 9 pm

70

Goto Topps

10 am – 9 pm

40

Chicksilog

10 am – 9 pm

60

Hapag Kainan

10 am – 9 pm

30

* Based on interviews conducted on competitors. •

Competitor’s Profile

A. 1st Primary Competitor’s Profile: Chansel’s Pizza

Chansel Pizza is a Pizza store strated operating last May 1, 2012, just a few months after the mall started operating. Pizza, like Beef-mushroom, Ham and Cheese and Hawaiian Classic and the like are being offered. It is located at the foodcourt where many competitors for fast-served food exist. Only through the students of the universities nearby Chansel Pizza has been known. There is no promotional activities are done for the publicity and increase of sales of the MARKETING STUDY Page 74


store. They offer Pizzas in very affordable prices, it will only range from 130 – 200 pesos and is being liked by the students. Unfortunately, they do not satisfy customers crave for Pizza since the size doesn’t even meet what is standard. It its promotional activities using World Wide Web/Internet for their branches in Manila but unfortunately there was inconsistency with the said activity. They weren’t able to respond to the people’s feedback about their services and offered product.

B. 2nd Primary Competitor’s Profile: Patricia’s Pizza

Patricia’s Pizza is only a food stall mainly targeting students which are already used of eating rice for their meals. Commonly their branches are established at institutions which are not so familiar causing their failure when it comes to publicity. They offer classical pizza flavors like Ham and Cheese, Cheesy Cheese, Beef with mushroom and Hawaiian Classic. Compared to the first competitor, Patricia’s Pizza is bigger in size but it doesn’t achieve the right taste for pizza. It survives in the industry because of its affordability and packaging convenience. The prices only range from 115.00 to 230 pesos depending on the size and the flavor.

•

It offers classic Italian pizza by which Filipinos are so used to.

•

STRENGTHS

Located inside the newly opened Starmall San Jose Del Monte

•

Airconditioned



• •

Affordable No extraordinary product is being offered

•

Since it is located inside the mall, not everyone sees it especially because it is located at the farthest

WEAKNESSES

part of the establishment covered by smaller stalls. •

No promotional activities being conducted

•

Packaging is not as attractive as it could be

•

Crews are not so accommodating

•

Slow usually delayed service

•

No gimmicks, no promos

•

Less quality pizza when it comes

•

to size and taste It offers classic Italian pizza by which Filipinos are so used to.

STRENGTHS

•

Located inside the newly opened Starmall San Jose Del Monte

•

Affordable



•

No extraordinary product is being offered

•

Since it is located inside the mall, not everyone sees it especially because it is located in the middle

WEAKNESSES

of 2 elevators on the ground floor. •

No promotional activities being conducted

•

No place for eating

•

No gimmicks, no promos

•

Less quality pizza when it comes to taste

Table 24: COMPETITORS PROFILE

MARKET SHARE ANALYSIS

•

Historical Market Share Analysis of Primary Competitors (Year 2012) MARKETING STUDY Page 74


HISTORICAL MARKET SHARE ANALYSIS CUSTOMERS COMPETITOR Daily

Weekly

Monthly

Yearly

(x7)

(x30)

(x365)

Raw Market Share

Market Share in Percentage

PRIMARY COMPETITORS Chansel Pizza

40

280

1,200

14,600

0.5714

57.14%

Patricia’s Pizza

30

210

900

10,950

0.4286

42.86%

TOTAL

70

490

2,100

25,550

1

100%

Table 25: HISTORICAL MARKET SHARE ANALYSIS OF PRIMARY COMPETITORS (YEAR 2012)

Exhibit 18: HISTORICAL MARKET SHARE OF PRIMARY COMPETITORS Historical Market Share Analysis of Both Primary and Secondary Competitors (Year 2012) •



HISTORICAL MARKET SHARE ANALYSIS CUSTOMERS COMPETITOR Daily

Weekly

Monthly

Yearly

(x7)

(x30)

(x365)

Raw Market Share


PRIMARY COMPETITORS Chansel Pizza

40

280

1,200

14,600

0.125

12.50%

Patricia’s Pizza

30

210

900

10,950

0.094

9.30%

Subtotal

70

490

2,100

25,550

0.219

21.90%

SECONDARY COMPETITORS Denise Pares and Grill

50

350

1,500

18,250

0.156

15.60%

Sisig Hooray

70

490

2,100

25,550

0.218

21.87%

Goto Topps

40

280

1,200

14,600

0.125

12.50%

Chicksilog

60

420

1,800

21,900

0.187

18.75%

Hapag Kainan

30

210

900

10,950

0.093

9.30%

Subtotal

250

1,750

7,500

91,250

0.7813

78.13%

TOTAL

320

2,240

9,600

116,800

1

100%

Table 26: HISTORICAL MARKET SHARE ANALYSIS OF BOTH PRIMARY AND SECONDARY COMPETITORS (YEAR 2012) * Based on interviews conducted on both primary and secondary competitors. * Raw Market Share = Number of Customers / Total Number of Customers



Exhibit 19: HISTORICAL MARKET SHARE OF BOTH PRIMARY AND SECONDARY COMPETITORS (YEAR 2012)

•

Projected Market Share of Filipizza (Year 2013)

Table 37: PROJECTED MARKET SHARE OF Filipizza (YEAR 2013) PROJECTED MARKET SHARE ANALYSIS PIZZA STORE

CUSTOMERS Daily

Weekly (x7)

Monthly (x30)

Yearly (x365)

Raw Market Share




Chansel Pizza

42

294

1,260

15,330

0.3889

38.89%

Patricia’s Pizza

32

224

960

11,680

0.2963

29.63%

34

238

1,020

12,410

0.3148

31.48%

108

756

3,240

39,420

1

100%

Filipizza (New Entrant) TOTAL

* Filipizza’s capacity to supply annually: 30 p ersons (based on computations on supply capacity of Filipizza) * Competitors has an annual increase of 5% on supply capacity based on increase in population. * 108 daily customers is based on projected demand in 2013 / 365 days

•

Exhibit 20: PROJECTED MARKET SHARE OF FILIPIZZA (BY THE YEAR 2013) Projected Market Share of Filipizza for the Next Five Years

YEAR

PROJECTED GROWTH

MARKET SHARE

2013

5%

31.48%

2014

5% 33.05% MARKETING STUDY Page 74


2015

5%

34.70%

2016

5%

36.43%

2017

5%

38.25%

Table 28: PROJECTED MARKET SHARE OF FILIPIZZA FOR THE NEXT FIVE (5) CONSECUTIVE YEARS * Projected Market Share Increase Annually = 5% (based on annual population growth rate)

Since the proponents of the business were optimistic that the entry of the business to the market will have an immediate impact to its customers, an increase in the number of its customers is expected and to comply with this, the proponents decided to start its market share at 31.48% and increase it for about 5% annually based on the total population growth rate. This will be because of the different promotional tactics the business will provide and the quality of our products itself.



* With 5% projected increase annually based on population growth rate

Exhibit 21: PROJECTED MARKET SHARE OF FILIPIZZA (2013-2017)


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S I S Y L A N A T O W S a z z i p i l i F

: 9 2 e l b a T



INDUSTRY ANALYSIS

Primary Competitors: Chansel Pizza Patricia’s Pizza Secondary Competitors: Denise Pares and Grill Sisig Hooray Goto Topps Chicksilog Hapag Kainan

Suppliers: ESC Marketing Clear Water Refilling Station F-R De Leon Enterprises MB Enterprises

New Entrant: Filipizza

Customers: Residents of Barangay Kaypian Students, Teaching and Non Teaching Staffs from Nearby Schools Mall visitors

Substitutes: Rice and ulam MARKETING STUDY meals Page 74 Breads


Exhibit 22: INDUSTRY ANALYSIS

MARKETING MIX STRATEGY

Advertising includes those activities by which visual or oral messages are addressed to the public for the purpose of informing them and influencing them either to buy merchandise or services or to act or to be influenced favorably toward ideas, institutions or persons featured. Promotion is communication by marketers that make the potential buyers informed, persuaded and reminded of a product to influence an opinion or elicit response.

•

Product Strategies

There are lots of pizzerias everywhere nowadays and they all have the traditional flavors like Hawaiian and pepperoni pizza topped with different cheese MARKETING STUDY Page 74


toppings. With this little variety of flavors, the customers tend to get used with the taste of the pizzas. The proponents took this opportunity to make the traditional flavored pizza into different panorama. The group topped the pizza with different dishes the Filipinos are fond of. And they named it Filipizza, the house of Filipino pizza. There they combine the luscious dishes in the Philippines with the European’s pizza. Adobong pusit, Bicol express, Bopis, Pinoy Beef Caldereta and Sisig are the five flavors we are introducing in the market. Plus the dough we will be serving will be flavored with malunggay, making sure that the customers will get the right amount of nutrition they need especially for the dieters.

Filipizza guarantees good taste of food and healthy amount of nutrients. All were made for everyone.

Figure 5: FILIPIZZA MENU LIST



•

Place Strategies

Filipizza will be located just along Quirino Highway right across the Northridge Subdivision. The place is only few steps away from the newly-opened Starmall San Jose Del Monte. Its location is one of the prime residential and retail destinations in the area. MARKETING STUDY Page 74


Many people visit the location because of the different institutions in the area. Strategically located nearby schools and universities, the place is frequently visited by our targeted students. At the same time, Starmall San Jose Del Monte sits just southwest of our store. Families who frequently go there most especially during Saturdays and Sundays has the mindset of enjoying or recreating and is looking for easier ways to satisfy their prioritized need in the fastest and simplest way possible.

Moreover, there is a proposed plan that a northern MRT-7 line to link North Avenue-EDSA to San Jose Del Monte City is to be on rise on the place by the year 2014-2015. With this, we can expect greater sales by the near future.

•

Exhibit 1:

Pricing Strategies

We used the Cost Plus Strategy in order to set the price of our products. The computation would be: Total Production Cost

Add: 15% Mark-up Price Subtotal

Add: 12% Value Added Tax GROSS SELLING PRICE MARKETING STUDY Page 74


•

Promotion Strategies

These days technology had been available everywhere. A lot of people had been more actively participating in social media websites in order to get in touch with their love ones in long distance. With the use of these websites it will be easy to disseminate information and a lot of business owners use this trend to introduce and promote their product in every walks of life. These sites will provide greater opportunity for Filipizza to show what this venture can offer. Aside from this, huge posters and tarpaulin will be a good help in promoting the product. These tarpaulin and posters will be glued on the side of the wall of the store. Nameplates will always be pinned on employee’s collar. The fliers will be given away to the people passing by the streets especially to the students near the vicinity of the store. a. Poster

Posters will be placed in our Filipizza store. Both of them will surely catch the attention of our customers because of the information provided and the aesthetic appeal. The size of our poster will be 22“ x 28“. Two (2) posters will be produced for which will be good for about six (6) months.



Figure 6: COMPANY POSTER

b. Nameplate

Filipizza will provide nameplates for each employee of our store. Chosen colors are pleasing to the eye and will surely boost the interest of our customers. The size of our nameplate will be 8 cm x 2 cm. M A R K E T IFigure N G S 7: T UCOMPANY DY Page 74


c. Company Flyer

The company will also provide flyers. These flyers will be distributed once a week every Saturday for four (4) times in a month. Flyers are good form of product promotion because they can convey a wide range of possible buyers for it can be brought to other places. The store will produce about 200 flyers in a month (50 pcs every Saturday will be distributed). Flyers will be given in the first three (3) months of our operation until we get our loyal customers. The size of our flyers will be 4.5 inches x 5.5 inches.

Figure 8: COMPANY FLYER (Front and



d. Tarpaulin

A tarpaulin will also be provided by the company two weeks before its opening day. This will inform the neighborhood of the business that will soon be opening in the area. Also, this would create awareness and a feeling of excitement to our target market. The tarpaulin size will be 4 sq. ft. x 8 sq. ft.



Figure 9: TARPAULIN

TAKE-OUT SERVICE

Offering take-out service will be promoted for the proposed project. With the use of a bilao wrapped with foil, Filipizza would reach the customers not MARKETING STUDY Page 74


involved in the target geographic area of the business. By this kind of marketing program, there is a big possibility of increasing Filipizza’s market demand.

OPENING - DAY BLITZ

On the opening day of Filipizza, we will relive the traditional Filipino culture by playing many original Filipino songs from artists like Ryan Cayabyab, Regine Velasquez, Ogie Alcasid and many more. Through this, we will be able to attract customers and walk-in patrons. At the same time, Filipizza will also offer promos like free taste and buy 1 take 1 for the first three (3) customers of our store. Plus, at exactly 8:00 in the evening (an hour be fore the closing of our store), we will be giving a 10% discount for all the customers who will be ordering our products.

CHANNEL OF DISTRIBUTION


Marketing Study

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