marketing study

A FEASIBILITY STUDY ON PINOY-FLAVORED PIZZA

MARKETING

STUDY

CHAPTER 2

M A R K E T I N G S T U D Y Page 74


MARKETING STUDY

Conducting market feasibility and competitive intelligence marketing

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 of data problems relating to the financial, production, and marketing of

goods and services to help decision-making and control”. Any market study

seeks to bring more orderliness for better guidance in solving problems 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 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 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

information from the target market. In this technique, each member of the

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.

SAMPLE SIZE DETERMINATION


http://www.experiment-resources.com/research-population.html


In determining our sample size for the proposed project, a Slovin’s

Formula is being used.

Slovin’s Formula: Nn = ____________

1 + Ne2

Where: n= sample size

N= the total population

e= margin of error (.05)

QUESTIONNAIRE FORMULATION

In order to have an access on the pertinent information and gather

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 to pizzas. In the second questionnaire, the group provided ten (10)

questions, simple and direct to the point. Questions are all itemized consisting of

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.

Age Group Population Distribution

1 - 12 9 2.27

13 - 19 225 56.82

M A R K E T I N G S T U D Y 4


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 20-

35 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%.

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?




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.



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


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.

4.) (For those who answered Yes above) Among the flavors you have tried,

what is your MOST favorite?


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 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.

7.) What Filipino dish will you want us to use as new toppings to your

pizza?


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?




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?




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?




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

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

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

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…



37,591n = _______________

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.



Exhibit 13: POPULATION AGE SEGMENTATION

Interpretation:

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%.

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



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

YEARTOTAL

POPULATION

TARGET POPULATION PERCENTAGE

DEMAND GROWTH PATTERN

2008 30,226 92% 27,808

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)

Where: A = average increase

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

Solution:

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

A = 34,584 – 27,808______________

5 – 1

= 6,776

_____________

4

A = 1,694


Yn – YcN - 1


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.

Table 19: HISTORICAL SUPPLY

COMPETITOR

PIZZA SUPPLY 2012(per tray)

For a Day For a Month

For the year 2012

Chansel Pizza 80 2,400 19,200

Patricia’s Pizza 70 2,100 14,700

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- PERCENTAGE



DEMAND SUPPLY SUPPLY GAP

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.

YEARPROJECTED

DEMANDPROJECTED

SUPPLY

DEMAND AND

SUPPLY GAP

PERCENTAGE UNSATISFIED

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%

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.

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

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 HOURSESTIMATED

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

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.

STRENGTHS

It offers classic Italian pizza by

which Filipinos are so used to.

Located inside the newly opened

Starmall San Jose Del Monte

Airconditioned

Affordable

WEAKNESSES

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

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

STRENGTHS

It offers classic Italian pizza by

which Filipinos are so used to.

Located inside the newly opened

Starmall San Jose Del Monte

Affordable



WEAKNESSES

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

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)

HISTORICAL MARKET SHARE ANALYSIS

COMPETITOR CUSTOMERS Raw Market



Market Share

Share in Percentage

Daily Weekly(x7)

Monthly(x30)

Yearly(x365)

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

COMPETITOR CUSTOMERS Raw Market



Market Share

Share in Percentage

Daily Weekly(x7)

Monthly(x30)

Yearly(x365)

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 Raw Market Share

Market Share in

PercentageDaily Weekly(x7)

Monthly(x30)

Yearly(x365)



Chansel Pizza

42 294 1,260 15,330 0.3889 38.89%

Patricia’s Pizza

32 224 960 11,680 0.2963 29.63%

Filipizza(New

Entrant)34 238 1,020 12,410 0.3148 31.48%

TOTAL 108 756 3,240 39,420 1 100%

* Filipizza’s capacity to supply annually: 30 persons (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

YEARPROJECTED

GROWTHMARKET SHARE

2013 5% 31.48%

2014 5% 33.05%



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)



SWOT ANALYSIS

TH

RE

AT

S

To

be

know

n by

co

mpe

tito

rsLi

mita

tions

Hig

her

prod

uct

ion

co

st

Mo

re c

om

petit

ors

arou

nd

the

area

Fo

od

esta

blis

hme

nts

Effe

ctiv

ene

ss o

f th

e p

rom

otio

n

Aw

are

nes

s o

f cu

sto

mer

s

OP

PO

RT

UN

ITIE

S

App

eal

ing

Shi

ft

to

con

sum

er

tre

nd

Ver

y co

mpe

titiv

e p

rice

New

in t

he m

arke

tP

leas

ing

V

ery

acc

epta

ble

Cos

t-ef

fect

ive

di

rect

m

ark

et

In m

arke

t tre

nd

WE

AK

NE

SS

ES

New

in t

he m

arke

t

Flu

ctua

tion

of c

ost o

f ra

w m

ate

rials

es

pec

ially

ma

jor

ingr

edie

nts

such

as

flou

r, s

uga

r an

d m

eat

.

Oth

er c

om

petit

ors

Lim

ited

bud

get

for

prom

otio

n

Peo

ple

pe

rcei

ves

that

pi

zza

is t

he s

ame

as

any

oth

er k

ind

of fo

od

ST

RE

NG

TH

S

Env

iron

men

tal f

rien

dly

Pro

- he

alth

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y to

mak

e a

nd

eat

Saf

e U

niqu

eN

atio

nal

istic

Low

pric

e (A

fford

able

)

Nea

r sc

hool

s, m

all,

mai

n

road

and

sub

div

isio

ns

Mo

re c

om

petit

ors

aro

und

th

e a

rea

Fo

od e

stab

lish

men

ts

Ver

y fo

nd o

f eat

ing

piz

zaP

rove

n be

nefic

ial

esp

ecia

lly in

term

s of

he

alth

Filip

izz

a

PR

OD

UC

TS

PR

ICE

PL

AC

E

PR

OM

OT

IO

N

PE

OP

LE


Tabl

e 29

: Fili

piz

za S

WO

T AN

ALYS

IS


INDUSTRY ANALYSIS

Exhibit 22: INDUSTRY ANALYSIS

MARKETING MIX STRATEGY


Primary Competitors:Chansel PizzaPatricia’s Pizza

Secondary Competitors:Denise Pares and GrillSisig HoorayGoto ToppsChicksilogHapag Kainan

New Entrant:

Filipizza

Substitutes:Rice and ulam mealsBreads

Customers:Residents of Barangay KaypianStudents, Teaching and Non-Teaching Staffs from Nearby SchoolsMall visitors

Suppliers:ESC MarketingClear Water Refilling StationF-R De Leon EnterprisesMB Enterprises


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

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.

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.

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

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


Exhibit 1:


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


Figure 7: COMPANY NAMEPLATE

Figure 8: COMPANY FLYER (Front and Back)


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.

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.



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



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

Channel of Distribution, sometimes called the marketing channel is a set

of interdependent organization that eases the transfer of ownership as product

move from producer to business users.



In order to distribute our products, Filipizza will use a direct channel of

distribution wherein the products will be given directly from the producer to the

consumers.

CUSTOMERS


Exhibit 23: CHANNEL OF DISTRIBUTION

marketing study

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