LYCEUM OF THE PHILIPPINES UNIVERSITY - CAVITE 

CHAPTER I

MARKETING STUDY

1.0 INTRODUCTION

As time goes by, modernization keeps being on progress and along with that,

people's need for more convenient means of transportation increases. A lot of people now

own a vehicle, either a car, motorcycle and any other kinds. Being said that vehicles are

just machines, it has failures sometimes and mostly happens at times that you really do

not expect. Sometimes it does fail at places you have never been yet, on areas where only

few people are present to seek help from, and worse on places that you do not have any

clue where the nearest vulcanizing or repair shops are. But to make vehicle owners' lives

easier when this happens, vulcanizing mobile application is the best option to get

assistance.

Background of the Study 

Modernization keeps being in progress and a lot of people now own a private

vehicle and public vehicle for transportation, either a car, motorcycle and any other kinds.

Sometimes it has failures, mostly happens at times that you really do not expect. Riders

can contact mobile applications implementing auto repair shop and services about their

whereabouts when they got vehicle malfunctions like flat tire, overheated engine, etc. as

quick as possible. The researchers came up with the idea of establishing a Mobile

Application implementing auto repair shop and services in Tagaytay.

1.1 Objectives

General Objectives: 

The main aim of this study is to determine the feasibility of establishing a

Vulcanizing and Repair Shop’ Mobile Application.

Specific Objectives:

 - To determine if the demand is sufficient to sustain the service

 - To know what marketing strategy is to be used 

 - To know the financial aspect of the study

1.2 Scope and Limitations

The research focuses on determining the market analysis wherein the market

segmentation, demand analysis, industry analysis, supply analysis, gap analysis and

channel analysis and marketing strategy.

Target Market:

The target market of the study is the riders within the City of Tagaytay.

Business Name:

ACT! Auto Repair Shop, it is the combination of owner’s surname. The

abbreviation letter A stands for Angeles, C stands for Cacas, and T stands for Toregoza.

Business Logo:

Business Location:
1.3 Methodology

To gather the needed information in this study, the researchers used the following

methods:

Document Record

 The researchers gathered the data about the total population of motorists within

the City of Tagaytay from Age of 17 years old to 61+ years old, educational

attainment, employment status, monthly income, purpose of the trip to Tagaytay

City, kind of vehicle, times of visiting Tagaytay City, experience problems,

common problems, and etc.

Sampling Method

Questionnaire

 The researchers provided questionnaire for the respondents to

gather the needed information in the study.

Survey

 The researchers conducted survey from 17 years old to 61+

years old residence and motorist enrolled within Tagaytay

City.

The data were gathered from the following:

• Tagaytay City, Cavite, Philippines Target market of residence from

17 years old to 61+ years old.

• Tagaytay City, Cavite, Philippines Target market of motorists from

17 years old to 61+ years old

 1.4 Assumptions

The researchers assumed that:

• The target markets of the service are 17 years old to 61+ years old in various

barangay within Tagaytay City, Cavite.

• The establishment of the service will be located in Dasmariñas, Cavite.

• The demand of auto repair shop is potentially increasing.

• The proponents assumed that the forecasted demand will avail the services

provided by the business.

• Ongoing service contracts ensure steady income for the shop.

• Reduce cash flow problems both in the short and long-term.

2.0 SERVICE DESCRIPTION

2.1 Service Background

Auto repair business is amongst the highly thriving and profitable easy to setup auto

services related business idea can successfully start. Car repairs are one business that never

goes into extinction. This is because daily, fleets of cars are being added to the garages of

people and so whether it is a brand-new car or a fairly used one, it can be sure that sometime in

the future car repair would be inevitable.

ACT! Auto Repair Shop is to provide professional auto repair, maintenance services and

other auto repair related services that will assist businesses, individuals, households and non-
profit organizations who owns automobiles in ensuring that their automobiles are always in

good shape.

ACT! Auto Repair Shop provides a wide range of auto repair services. These include:

 Scheduled maintenance.

 Wheel alignments, tires and rims.

 Brake repair.

 Comprehensive engine repair.

 Transmission.

Each job or project will be on a reservation basis, although we will accept a small percentage

of drive-in repair work.

2.2 Service Rational

ACT! Auto Repair Shop offers a wide range of services. It is ultimately the goal of the

company to offer a one-stop facility for all auto servicing needs, including brakes,

transmission, wheel alignment, etc. In this way the company can offer greater perceived value

for the customer than many other shops which specialize in certain areas.

The industry is highly competitive with suppliers having a great deal of power in setting

and negotiating the prices of their products and services to repair shops. In addition, because

the customers see the service as undifferentiated with little value separation between

competitors, buyer power is also very high. The barriers to entry are moderately low, and the

large number of competitors in this field, including substitutes that the pricing for such services

is very competitive. The only way to have an advantage in this industry is a low-cost
leadership principal applied aggressively or to create higher switching costs through the

building of strong business to customer ties.

ACT! Auto Repair Shop will be hired trained and certified mechanics who are able to

prove they have superior customer awareness and interaction. It is the company’s professional

people who will fulfill the firm’s contracts and goals. The largest part of the company’s

expenses will be in labor costs.

3.0 MARKET ANALYSIS

3.1 Market Segmentation Analysis

Market Segmentation is the study of business practice that determines how a

business enterprise divides customers into smaller groups based on characteristics and

common ground they share. 

VARIABLE DESCRIPTION

Country Philippines

Region IV-A CALABARZON

City Tagaytay City

Area Type Rural

3.2 Demand Analysis

3.2.1 Demand Determinants

 3.2.2 Demand Projection

3.3 Industry Analysis

         3.3.1 PEST

         PEST Analysis (political, economic, social and technological) is a management method

whereby an organization can assess major external factors that influence its operation in order to

become more competitive in the market. As described by the acronym, those four areas are

central to this model.

I.              Political Factor

Political factors play a significant role in determining the factors that can impact a

company’s long term profitability in a certain country or market. There are a number of

government agencies that a company must register when starting a company and hiring

employees. It is essential to register for a company to avoid any legal problems once

business operations begin. The company must be registered within the Department of

Trade and Industry (DTI).  As well as being registered to government agencies, the

company must also be securing a business or mayor’s permit in the respective location of

the company or local municipality.

II.            Economic Factor

The state of the economy can decide many of the important details that come up in an

operating company, including topics such as consumer demand, taxes and asset value.

For a company, key economic factors include labor costs, interest rates, government
policy, taxes and management. These factors are not in direct relation with the company

but it influences the investment value in the future. Proper studying and analyzing

economic trends should help the company in their pricing, revenues, and costs.

III.           Social Factor

The company should look into these factors such as social attitudes, behavior, and trends

that impact the organization and target market. Customer’s beliefs and values need to be

looked into because they are detrimental to their purchasing habits. Most motorists have a

hard time locating nearby vulcanizing and repair shops when their vehicle gets in trouble

along the way. The company gives convenience and efficiency in providing emergency

service for our target customers as the rise in vehicle owners within our scope is rapidly

increasing.

IV.          Technological Factor

Technology is a key factor when it comes to starting up a company. Customers want a

fast and easy way of accessing products and services. With the introduction and

popularity of technopreneurship, it would impact the company’s way of introducing itself

to the market. It is shaping the field of service enabling both customers and employees to

get and provide customized services. The technology has been the basic force behind the

service innovation. With the technology today, the company’s target market can easily

access the service it offers.

 3.4 Competitor Analysis

Competitor analysis is an important requirement in any business plan, it is a way of

assessing and analyzing the comparative strengths and weaknesses of competitors, It may

include their current and potential product and service development and marketing strategies.

         3.4.1 Background of Existing Competitors

         Direct competitors are businesses that produce a virtually identical product or service that

is offered for sale within the same market as those produced by one or more other companies.

Indirect competitors are businesses that are offering products and services that are close

substitutes. These competitors are probably targeting the markets with a same or similar value

proposition, but delivering a different product.

I. Direct Competitors

o   the company has no direct competitors that provide the same services that

specializes in emergency service auto repair through a mobile application.

II. Indirect Competitors

3.4.2 SWOT Analysis

 STRENGTHS WEAKNESSES

 Good Location  Many competitors in the area

 Easy Access
 Quality of Service
 Highly skilled workforce

OPPORTUNITIES THREATS

 Expansion of market reach  New competitors will offer or establish the

 Expansion of services offered same service.
 Newly introduction of service
type
 No direct competitors in the
area

I.                    Strengths

o   Good Location

The target location of the company is at Tagaytay City, Cavite where there is high

volume of car density and heavy traffic which can lead to potential demand.

o   Easy Access

The service provided by the company can be easily accessed due to it being a

mobile application.

o   Quality of Service

Customer satisfaction through high quality service is the aim of the company.

o   Highly skilled workforce

 In order to achieve high quality service, the company will hire highly skilled

employees with proper training and learning programs.

II.                  Weakness

o   Many competitors in the area

There are a lot of competitors in Tagaytay City so the company should introduce a

proper marketing campaign for it to be recognized and have profit.

III.                Opportunities

o   Expansion of market reach

The company may expand its target market. Some of the drivers and riders that

pass through Tagaytay City came from nearby places in Cavite which the

company can expand its services to.

o   Expansion of services offered

The company may expand its services since there are many categories under car

repair and maintenance like car washing and air conditioning.

o   Newly introduction of service type

Since the type of service is new in the area, potential customers can be curious

and try the service.

IV.                Threats
 o   New competitors will offer or establish the same service

There is a possibility that there will be new competitors to enter the scene and

introduce the same service which could lead to the possibility that the customers

will not patronize the company. 

3.5 Supply Analysis

3.5.1 Supply Determinants
3.5.2 Supply Projection
3.6 Gap Analysis
3.6.1 Demand and Supply Gap
3.7 Channel Analysis
4.0 Market Share
5.0 MARKETING STRATEGY

5.1 Service Strategy

Encourage Engagement on Social Media

- It can be related to anything about vehicles, driving, your community, and your

shop such as:

a. Driver safety tips

b. Car maintenance advice  

c. Traveling tips

d. Traffic news

e. Photos of your staff and location

f. Customer satisfaction stories

g. Info about local events

 h. Support for community initiatives

i. Offer specials and coupons for likes and shares

Create a Referral Rewards Program

- Current customers and new customers will receive benefits such as small freebies,

service discounts, and contest entries.

Implement a Services Subscription Plan

- Create a subscription service plan that allows customers to spread their payments

out over time in return for discounted scheduled services.

Educate customers through informative in-store content.

- One way to do that is by providing informative content that alleviates customer’s

fears, concerns, and confusion. Explains how services are performed and why

these are necessary and shares facts and evidence about the value of products and

services.

Post Before and After Photos

- It can also show customers that by sharing content that proves the value of the

work, the shop can gain trust.  Digital signage is another great way to highlight

before and after photos of the work team has completed.

5.2 Pricing Strategy

Penetration pricing - setting a low price to enter a competitive market and raising

it later. It creates customer base quickly due to low price of product because all other
factors take backseat when price offered by the company for a product is low as majority

of customers are price conscious.

5.3 Promotions Strategy

Send Regular Emails

- Use Wi-Fi Marketing or a written form to collect email addresses from customers

and launch an email newsletter.

Send Personalized Service Reminders and Deals via Email or Text

- Send targeted, personalized reminders and deals to customers through either email

or SMS.

Encourage Customers to Write Reviews

- Another way to leverage user-generated content to connect with more customers

is by collecting and posting reviews about the business.

Create a Follow-Up Program

- Another way to stay in touch with customers is following up with the customers

after visited the location.

Use In-Store Digital Signage to Promote Products and Services.

- Digital screens allow to customize waiting area television programming, quickly

update promotions, deliver animated and video advertisements, and use

programming as a silent, continuous salesperson.

5.4 Location Strategy

Consider the Importance of Your Location

 - The customers have to find the specific location of the business in order to take

advantage of the services provided by insurance company. So, it might be able to

save some money by not targeting the most premium business locations.

Make It Convenient for Customers

- In addition to simply choosing a location that’s easy to find, auto repair

businesses should also consider how many customers need to drop their vehicles

off and then have options for walking to restaurants or other transportation

options.

Use Signage to Attract People

- It’s best to choose a location that’s right on a main road so that people driving by

can see it and know exactly where are when they need automotive services. 

6.0 Conclusion