13

CHAPTER II
MARKET STUDY

Marketing is a systematic approach toward business activities ensuring the

effectiveness of strategic designed that are relevant on planning, pricing, promotion, and
distribution of quality products as well as the service accommodation beyond customers’
satisfaction. Marketing also consider as the lifeblood of the business transactions which
focus on how the objective cope-up with customers’ needs and expectation, identifying
relevant opportunities, advertising the product in the market, and to achieve customer’s
loyalty and patronage.
This aspect includes the following topics: demands, supply, demand and supply
gap analysis, marketing programs and the projected sales.
The objective of the venture is to meet the customers’ satisfaction, wherein able to
obtain the needs and expectations of proposed products, served a high value service, best
to place in, cost-effective and sustainable manner, and the responsiveness over quality
management. Moreover, it’s about profitability. Marketing aspect serves as the basis of
the financial section through understanding the projected demand. It is important to
analyze the target market of the proposed products, in order to apply the objectives of the
market strategy toward profitability. The aspiring proponents must first identify the
advantages and weaknesses of their target market, considering the gathered information
and approaches to make the business feasible.
On other hand, customer satisfaction defines the business success. They are the
lifeline of the business that represent the key factors to achieve the objectives. Knowing
customers demand and to deliver the service over right products at reasonable prices.

Objectives
a) To analyze the market demand and supply of the business,
b) To define the target customer of the business through market segmentation,
c) To determine the marketing strategies to be applied in the business,
d) To determine the feasibility of the business,
e) To determine the capability of the business,
f) To analyze and understand the complexities of the business.
 14

A. Demand

The first factor to consider is the range of demand of our products in order to
answer our customer needs and wants. Knowing the 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 for each product that we are going to produce daily,
weekly, monthly, and annually.

A.1. Projected Demand

A.1.1. for the Industry
Since there is no statistical data recorded in NSO and DTI regarding the
demand for the proposed products-Relleno, we forecasted the annual increase of
demand for the years 2020-2024 assuming the latest recorded data of NSO for the
annual population growth rate from 2010-2015 by 1.48%. The annual projected
demand based by multiplying the market acceptability which is obtained by getting
the percentage of respondents who are willing to eat Relleno products with 86% and
multiplied to the average frequency of agreement or the times the customers avail the
products annually which is 72. Based from the obtained demand, it was distributed
again to every product in order to determine its demand.

Year Target Market Frequency Annual

Population Acceptabilit Of Demand
y Agreemen
t

2020 53563 .86 72 3,316,621

2021 54356 .86 72 3,365,724

2022 55160 .86 72 3,415,508

2023 55977 .86 72 3,466,096

2024 56805 .86 72 3,517,366

Table 1
Projected Demand for the industry
 15

A.1.2. for the Products

Assisted the projected demand of the particular product by multiplying the

projected annual demand of the industry to the overall percentage of each product
given by the survey. Applying the Population growth rate of 1.48%.
Relleno Rellenong Rellenong Rellenong Rellenon Coated
Products Alimango Pusit Bangus g Eggwhite
Tahong Total
(25%) (23%) (26%) (16%) (100%)
Year (10%)
2020 829,155 762,823 862,321 331,662 530,659 3,316,620

2021 841,431 774,117 875,088 336,572 538,516 3,365,724

2022 853,877 785,567 888,032 341,551 546,481 3,415,508

2023 866,524 797,202 901,185 346,610 554,575 3,466,096

2024 879,342 808,994 914,515 351,737 562,779 3,517,367

Total 4,270,329 3,928,702 4,441,142 1,708,132 2,733,010 17,081,315

Other Bulanglang Picadillo Creamy Buttered Pineapple

Products Vegetable Vegetable Fried rice
Total
(28%) (26%) (22%) (16%) (8%) (100%)
Year
2020 928,654 862,321 729,657 530,659 265,330 3,316,621

2021 942,403 875,088 740,459 538,516 269,258 3,365,724

2022 956,342 888,032 751,412 546,481 273,241 3,415,508

2023 970,507 901,185 762,541 554,575 277,288 3,466,096

2024 984,862 914,515 773,821 562,779 281,389 3,517,366

Total 4,782,768 4,441,141 3,757,890 2,733,010 1,366,506 17,081,315

Table 2
Projected Demand for the products
 16

A.2. Market Segmentation

A.2.1. Geographic
 Location : Govic Avenue, Iba, Zambales, 2201
 Climate : Tropical monsoon climate
 Barangay : Govic Avenue
 Region : Region 3
 City : Iba, Zambales
 District : 2nd district
 Density of the Area : Urban and Rural
 Income class : 2nd Municipal income class

A.2.2. Demographic
 Age : 14 – 40 years’ old
 Gender : Male and Female

A.2.3. Psychographic
 Personality : Curious
 Lifestyle : Hectic and adventurous

B. Supply
The second and most relevant factors of the business where to analyzed and
understand the capacity of resources to provide a sustainable production. Considering
the demand outputs measuring the percentage of the population who already
consumed and availed Relleno products from our survey questionnaire, we
determined our projected supply.

B.1. Projected Supply

The projected supply will be essential to the growing demand of
productions and help to determine the availability of supply to which the
organization will able to uphold future demands. This projection will ensure also
the customers’ satisfaction relevant to the availability of products served. It was
obtained by multiplying the target population with 1.48% growth rate to the
 17

percentage of purchases which is 83% based on the survey, and the frequency of
agreement.

B.1.1. for the industry

Year Target Percentage Frequency Annual

Population of Of Supply
Purchases Agreemen
t

2020 53563 .83 72 3,200,925

2021 54356 .83 72 3,248,315

2022 55160 .83 72 3,296,362

2023 55977 .83 72 3,345,186

2024 56805 .83 72 3,394,667

Table 3
Projected Supply for the Industry

It was distributed per product to determine the total satisfied market for
every product.
B.1.2. for the products
Relleno Rellenong Rellenong Rellenong Rellenon Coated
Products Alimango Pusit Bangus g Eggwhite
Tahong Total
(25%) (23%) (26%) (16%) (100%)
Year (10%)
2020 800,231 736,213 832,241 320,093 512,148 3,200,926

2021 812,079 747,112 844,562 324,832 519,730 3,248,315

2022 824,091 758,163 857,054 329,636 527,418 3,296,362

2023 836,297 769,393 869,748 334,519 535,230 3,345,186

 18

2024 848,667 780,773 882,613 339,467 543,147 3,394,667

Total 4,121,364 3,791,655 4,286,218 1,648,547 2,637,673 16,485,456

Other Bulanglang Picadillo Creamy Buttered Pineapple

Products Vegetable Vegetable Fried rice
Total
(28%) (26%) (22%) (16%) (8%) (100%)
Year
2020 896,259 832,241 704,204 512,148 256,074 3,200,926

2021 909,528 844,562 714,629 519,730 259,865 3,248,314

2022 922,981 857,054 725,200 527,418 263,709 3,296,362

2023 936,652 869,748 735,941 535,230 267,615 3,345,186

2024 950,507 882,613 746,827 543,147 271,573 3,394,667

Total 4,615,927 4,286,218 3,626,801 2,637,673 1,318,836 16,485,455

Table 4
Projected Supply for the Products

B.3. Competitors Analysis

Analyzing the existing competitors in the target market will help the
business to identify and understand the trend of market demands. It is essential for
the business to understand the presents demand from those competitors in order to
measure the probability of business success. Also identify the factors to be
consider such as the advantages of the business over their competitors.

The following are the competitors of the business;

 Jollibee (1) – Filipino type of restaurant catering fried chicken and burger
stake as their main products.
 Chowking (1) – Chinese type of restaurant catering fried chicken, Chao-
fan stir fried rice, and noddle soups as their main products.
 McDonald (1) – American type of restaurant catering Fried Chicken and
burgers as their main products.
 Greenwich (1) – Filipino restaurant inspire with Italian cuisines such as
Pizza, Lasagna, and also Fried Chicken as their main Products.
 19

 Mang Inasal (1) – Filipino type of restaurant catering chicken and pork
barbeque as their main products.
 Shakeys (1) – A Filipino Restaurant that cater pizza, fried chicken, and
other snacks as their main products.
 Goldilocks – A casual restaurant that cater bake products as well meal
dishes as their main products.
 Bons Restaurant (1) – Filipino casual dining restaurant catering different
dishes from pork, beef, chicken, and vegetables.
 Andoks – a Food stall catering chicken and pork barbeque as main
products.
 Food Court @ ITC (6) – a group of food stall located at Iba Town Center
catering different and casual food dining products.
 Other Vendors (15+) – existing food vendor in the target market catering
casual food dining.
Competitor
s Jollibee McDonald Chowkin Greenwic Mang Bons
g h Inasal Restaurant
Products
Rellenong - - - - - -
Alimango
Rellenong - - - - - -
Pusit
Rellenong - - - - - -
Bangus
Rellenong - - - - - -
Tahong
Coated Egg - - - - - -
white
Picadillo - - - - - -

Pineapple - - - - - -
Fried rice
Creamy - - - - - 1
Vegetable
Bulanglang - - - - - -

Buttered - - - - - 1
Vegetable
Competitor
s Andoks Goldilocks Shakeys Food stall Other
@ ITC vendors
Products
Rellenong - - - - -
Alimango
 20

Rellenong - - - - -
Pusit
Rellenong - - - - -
Bangus
Rellenong - - - - -
Tahong
Coated Egg - - - - -
white
Picadillo - - - - -

Pineapple - - - - -
Fried rice
Creamy - - - - -
Vegetable
Bulanglang - - - - -

Buttered - - - - -
Vegetable
Table 5
Competitors’ Products Analysis

C. Demand Supply Gap Analysis

In accordance to the projected demands and supply of the industry, determines the
gaps of the supply over the demands that represents the unsatisfied market. It is necessary
for the business to distinguish the needs of production as well as the unsatisfied market in
order to move from its current state to its desired, future state. This shows the assessment
of market needs for the proposed product (Relleno) obtained from the projected gap of
demand and supply. These will represent to the essentiality of business to identify or
listing the characteristic factors such as attributes, competencies and performance levels.
It also shows the number of persons whom we need to supply to answer their demand for
the proposed products. We now show the gap for every product using the data from
projected demand and projected supply.

Year Demand Supply Gap

2020 6,633,241 6,401,852 231,389

2021 6,731,447 6,496,629 234,818

2022 6,831,016 6,592,724 238,292

 21

2023 6,932,192 6,690,372 241,820

2024 7,034,733 6,789,334 245,399

Total 34,162,630 32,970,912 1,191,719

Table 6
Demand - Supply Gap for the Industry

RK Rellenong Alimango Rellenong Pusit

Products Demand Supply Gap Demand Supply Gap
Year
2020 829,155 800,231 28,924 762,823 736,213 26,610

2021 841,431 812,079 29,352 774,117 747,112 27,004

2022 853,877 824,091 29,787 785,567 758,163 27,404

2023 866,524 836,297 30,228 797,202 769,393 27,809

2024 879,342 848,667 30,675 808,994 780,773 28,221

Total 4,270,329 4,121,364 148,965 3,928,702 3,791,655 137,048

RK Rellenong Bangus Rellenong Tahong

Products Demand Supply Gap Demand Supply Gap
Year
2020 862,321 832,241 30,080 331,662 320,093 11,569

2021 875,088 844,562 30,526 336,572 324,832 11,740

2022 888,032 857,054 30,978 341,551 329,636 11,915

2023 901,185 869,748 31,437 346,610 334,519 12,091

2024 914,515 882,613 31,902 351,737 339,467 12,270

Total 4,441,142 4,286,218 154,924 1,708,132 1,648,547 59,585

RK Coated Egg white Picadillo

Products Demand Supply Gap Demand Supply Gap
Year
2020 530,659 512,148 18,511 862,321 832,241 30,080
 22

2021 538,516 519,730 18,786 875,088 844,562 30,526

2022 546,481 527,418 19,063 888,032 857,054 30,978

2023 554,575 535,230 19,345 901,185 869,748 31,437

2024 562,779 543,147 19,632 914,515 882,613 31,902

Total 2,733,010 2,637,673 95,337 4,441,141 4,286,218 154,923

RK Creamy Vegetable Pineapple Fried Rice

Products Demand Supply Gap Demand Supply Gap
Year
2020 729,657 704,204 25,453 265,330 256,074 9,256

2021 740,459 714,629 25,830 269,258 259,865 9,393

2022 751,412 725,200 26,212 273,241 263,709 9,532

2023 762,541 735,941 26,600 277,288 267,615 9,673

2024 773,821 746,827 26,994 281,389 271,573 9,816

Total 3,757,890 3,626,801 131,089 1,366,506 1,318,836 47,670

RK Bulanglang Buttered vegetable

Products Demand Supply Gap Demand Supply Gap
Year
2020 928,654 896,259 32,395 530,659 512,148 18,511

2021 942,403 909,528 32,875 538,516 519,730 18,786

2022 956,342 922,981 33,361 546,481 527,418 19,063

2023 970,507 936,652 33,855 554,575 535,230 19,345

2024 984,862 950,507 34,356 562,779 543,147 19,632

Total 4,782,768 4,615,927 166,841 2,733,010 2,637,673 95,337

Table 7
Demand – Supply Gap for the Products

D. Market Share Analysis

 23

The business must determine the market share that will be serve as basis of
marketing strategies of the RK organization. It will define the extent of market that
we need to satisfy. Out of the total available market which is 3.61% we made our
capacity to supply based in our resources. We have 1 counter, 15 sets of dining tables,
1 POS, 6 burners, 1 large capacity of rice cooker, 2 store perishable, and each product
requires at least 14 minutes of preparations. Our store hours are based the length
within 10Am – 9Pm per day. And we got 330 persons as our capacity to supply per
day and annually it is 120,450 which is 52.05% of the total available market for the
first year of projection.
Therefore, market share is computed by dividing the capacity to supply to the
available market.

They all increase by 6% every year projected because of the promotional tactics
provided by the business.
Market Share of Relleno Karehan, 2019 – 2023

Year Projected Growth Market Share

2020 6% 52.05%

2021 6% 55.17%

2022 6% 58.48%

2023 6% 61.99%

2024 6% 65.71%

Note: Capacity to Supply annually: 120,450 persons

Increase: 6%
Table 8
Projected Market Share

D.1. Projected Sales

Projected sales where obtained by getting the average selling price for solo
meals, combo meals and super combo meals, and multiply to our total capacity of
servings per products which is 330 persons. Our sales will increase by 6% based
on our market share.

Year Growth Rate Annual Sales Monthly Daily

2020 ---- 12,285,900 1,009,800 33,660

 24

2021 6% 13,023,054 1,070,388 35,680

2022 6% 13,804,437.24 1,134,611.28 37,820

2023 6% 14,632,703.47 1,202,687.957 40,090

2024 6% 15,510,665.68 1,274,849.234 42,495

Table 9
Projected Sales
E. Marketing Strategies
E.1. Product Strategies
As we observed the trend of the market demands, most attributes of teenagers and
millennial generations today is to come up in exploring something new and provide
efficient conveniences to their hectic lifestyles that may essential to their
satisfactions. On the other hand, the business products distinguish the advantage over
their competitors where the products offer provide uniqueness to those common
products they offered. This advantage is enable to penetrate the different perception
of delighters in the target market that no longer existed in other competitor’s menu.
The products of Relleno Karehan are as follow; Rellenong Alimango (25%),
Rellenong Pusit (23%), Rellenong Bangus (26%), Rellenong Tahong (10%), and
Coated Egg white (16%), while our subsidiary dishes are; Picadillo (26%), Creamy
Vegetable (22%), Pineapple Fried Rice (8%), Bulanglang (28%), and Buttered
Vegetable (16%). The process of the products is closely related on the traditional
way, while the business is cautiously providing innovation for its content and process.
The presentations of RK to the products emphasize the important of aesthetics,
appearance and food preparation, and the healthiness feature of products enable to
attract customers, as well as to achieve customers’ needs and expectations, through
quality products and best service accommodation in a sustainable manner. For takeout
products, Relleno Karehan will ensure the safety of the products and packed with
disposable spoon and fork.

E.2. Strategic Location

Relleno Karehan will be located near with Social Security System (SSS) building
and backside of IBA Town Center mall of Iba. Along with the SSS building and
backside of ITC will consider to be a strategic location for a business because it lies
in the intersection where all the public transportation and private vehicle will pass the
said location. And where is the main market of the locality. Though our scope is
within the vicinity of Iba Municipality, there’s a possibility that people from South
bound of national road such as Botolan, and Cabangan, and North bound such as
 25

Palauig, Masinloc, and Sta. Cruz, considering the people of these neighborhood are
subject for passing the location of the business.
In accordance to this matter, most common people of all stated neighborhood of
Iba Municipality is subject to all students and workers, because the target location
represents the advantage of locality in terms of its opportunities and where the
schools, University, and colleges are located. This will emphasize the opportunity of
business to achieve better accessibility to all the customers. Moreover, the location of
business is located at main market of the locality where we can have easy access
regarding the raw materials that we will be needed in regular operations and even on
emergency operation.
E.3. Pricing Strategies
The business will use the cost plus strategy in order to set the price of our
products. The computation would be:
Purchase cost + Operating cost + Mark-up = Selling Cost

Our products consist of different foods, drinks, side dishes, and desserts making a
complete meal. Our main foods are Relleno namely Rellenong Alimango, Relleno
Pusit, Rellenong Bangus, Rellenong Tahong, and Coated Eggwhite, while our
subsidiary courses are Picadillo, Pineapple Fried Rice, Creamy Vegetable,
Bulanglang, and Buttered Vegetable. It is sold by either in dining or take out and
form as value meal associated with sauce, drinks (16oz Soda), sour soup, and rice
(plain) except the Pineapple Fried Rice. The rice of Relleno Karehan is classified into
Plain Rice, Garlic Rice (converted), and Egg Rice (converted). While the drinks are
Soda (Coke), Pineapple Juice (converted), Iced Tea (converted) in 16oz. The value
meal also associated with two types of Sauce namely as Chili sauce and Tomato
sauce, and also every value dining meal will have a voluntary small bowl soup per
order. Relleno Karehan also offers in-demand desserts that suitable to any seasons
and easily captures the aesthetics of the products. These are Maja Squash Blanca,
Lechetin, Creamy Gulaman, Sago Mango salad, and Cheese Ice Cream.
Value meals are classified into three (3) forms of orders, the Regular Orders
(Regular) which characterize by solo order for any kind of our courses, while Combo
Meal (CM) is associated with two (2) types of dishes one is our Main course
(Relleno) and another one is any of our subsidiary dishes except Pineapple Fried
Rice, and Super Combo Meal (SC) closely same features with Combo Meal but
associated by all types of desserts products. The CM & SC meals has an essential
feature; which regular meal are not. Such as cost-effective and perfectly meet your
delights for the number of dish provided. But only applicable for Main dishes
(Relleno Food Products).
 26

Combo Meals will be granted for 10% less cost price on its regular Relleno Meal
price. While Super Combo Meals is granted for 15% less cost price on its regular
Relleno Meal price.

E.3.1. Product Pricing

Meals
Rellenong

Rellenong

Rellenong

Rellenong
Alimango

Eggwhite
Tahong
Bangus

Coated
Pusit
Form of
Orders
Regular Meal
112 107 98 91 114

Combo Meal
(10%) 101 96 88 82 103
+ SD + SD + SD + SD + SD
Super Combo
Meal 95 + 91 + 83 + 77 + 97 +
(15%) SD & D SD & D SD & D SD & D SD & D
Table 10
Main Course Pricing

Combo Meals are granted by a 5% discounts from its regular price.

VegetableCreamy

gBulanglan

Fried RicePineapple
VegetableButtered

Meals
Picadillo

Form of
Orders
Regular Meal
85 96 104 76 123

Combo Meal
w/Desserts 81 91 99 72 104
(5%) +D +D +D +D +D
Table 11
Vegetable Dish Pricing
 27

CreamCheese Ice
GulamanCreamy

Mango
SquashMaja
Desserts

Sago
Lechetin

Salad
Form of
Orders
Solo Order
29 32 36 50 37

Table 12
Desserts Pricing

JuicePineapple

(coke)Soda

RiceGarlic
Drinks/Rice

Iced Tea

RiceEgg
Plain
Form of
Orders
Solo Order
20 17 14 12 21 15

Table 13
Drinks & Rice Pricing

E.3.2. Price Computation

The proponent is decided to come up in the costing price as a pricing
strategy for every selling price of the products. This study analyzes and determine
the feasibility of the products through the selling cost come from the overall
expenses of production, the operating cost, and the mark-up of the business.

Noted: The cost plus pricing is based on the average production per product given
in our standard procedures. Which the basis of operating cost is 27% of the
purchase price, and 45% of the purchase price will come to as Mark-up of the
business. While every selling price has its corresponding tax of 12% as
compulsory monetary contribution to the goods sold and which imposes upon
compliance by the law.

Mark- Selling Selling

Purchase Operating Product Up Cost Cost
Products
Cost Without W/ Tax
Cost (27%) Cost 45% Tax (12%)
Rellenon
g 41.67 11.25 52.92 23.81 76.74 86
Alimango
Rellenon 39.67 10.71 50.38 22.67 73.05 82
g
 28

Pusit
Rellenon
g 35 9.45 44.45 20.00 64.45 72
Bangus
Rellenon
g 31.67 8.55 40.22 18.10 58.32 65
Tahong
Coated 42.86 11.57 54.43 24.49 78.93 88
Eggwhite
Table 14
Selling Price of Relleno Products

Mark- Selling Selling

Purchase Operating Product Up Cost Cost
Products
Cost Without W/ Tax
Cost (27%) Cost 45% Tax (12%)
Bulanglang 37.9 10.23 48.13 21.66 69.79 78

Picadillo 28.7 7.75 36.45 16.40 52.85 59

Creamy 33.8 9.13 42.93 19.32 62.24 70

Vegetable
Buttered 24.3 6.56 30.86 13.89 44.75 50
Vegetable
Pineapple 52.7 14.23 66.93 30.12 97.05 109
Fried Rice
Table 15
Selling price of Subsidiary Dishes

Mark- Selling Selling

Purchase Operating Product Up Cost Cost
Products
Cost Withou W/ Tax
Cost (27%) Cost 45% t Tax (12%)
Maja 14.1 3.81 17.91 8.06 25.97 29
Blanca
Sago
Mango 24.1 6.51 30.61 13.77 44.38 50
Salad
 29

Lechetin 15.6 4.21 19.81 8.92 28.73 32

Creamy 17.3 4.67 21.97 9.89 31.86 36
Gulaman
Cheese
Iced 17.8 4.81 22.61 10.17 32.78 37
Cream
Table 16
Selling Price of Desserts

Mark- Selling Selling

Purchase Operating Product Up Cost Cost
Products
Cost Without W/ Tax
Cost (25%) Cost 45% Tax (13.6%)
Plain 5.7 1.54 7.24 3.26 10.50 12
Rice
Garlic 7.3 1.97 9.27 4.17 13.44 15
Rice

Egg Rice 10.05 2.71 12.76 5.74 18.51 21

Pineappl
e 9.7 2.62 12.32 5.54 17.86 20
Juice
Iced Tea 8.05 2.17 10.22 4.60 14.82 17
Juice
Soda 6.6 1.78 8.38 3.77 12.15 14
(Coke)
Table 17
Selling Price of Drinks & Rice

E.3.3. Projected Average Selling Price

Average Total
Products Value Meals Saved Average
Price Price
Regular 104  
Relleno
Combo Meal 167 P 37 157
Super Combo
Products Meal 199 P 43
Vegetabl Regular 97  
113
e Combo Meal 129 P6
Dish  
Desserts Regular 37   37
Average Selling Price P 102
 30

Table 18
Average Selling Price

By determining the costs of production will help the proponents to analyze

the feasibility of the business from its day-to-day operation. In accordance from
the illustrated production costs per product, the percentage of mark-ups and its
operating cost percentage are reasonable enough to gain the profits of the business
as well as cost-effective towards customer satisfactions in a most sustainable
manner.

Daily Gross Margin

Sales Purchase Labor Gross
Year Revenue Price Cost Margin Percentage
2020 33,660 10,451 10,130.46 13,078 39%
2021 35,680 11,079 10,333.07 14,268 40%
2022 37,820 11,743 10,539.73 15,537 41%
2023 40,090 12,448 10,750.53 16,892 42%
2024 42,495 13,195 10,965.54 18,335 43%
E.4. Economic approach
After determining the average costs of production and getting the minimum sale
price of every product, the proponent may capable to assess the feasibility of productions
in a day-to-day operation. The assessment of initial productivity of the business operation
is provided by getting the projected gross income as well as the gross profit percentage.
This approach will determine the business capacity to cover all costs and also to produce
a profits for daily, monthly, and annual operations. Considering the projected growth of
6% and 2% increase of salaries for every subsequent year.
Table 19
Daily Projected Gross Income of the Business

Gross
Monthly Margin
Sales Purchase Labor Gross
Year Revenue Price Cost Margin Percentage
2020 1,009,800 313,530 263,392 432,878 43%
2021 1,070,388 332,342 268,039 470,007 44%
2022 1,134,611 352,282 272,779 509,550 45%
2023 1,202,688 373,419 277,616 551,652 46%
2024 1,274,849 395,824 282,549 596,476 47%
Table 20
Monthly Projected Gross Income of the Business
 31

Gross
Annually Margin
Sales Purchase Labor Gross
Year Revenue Price Cost Margin Percentage
2020 12,285,900 3,814,615 3,160,704 5,310,581 43%
2021 13,023,054 4,043,492 3,216,468 5,763,094 44%
2022 13,804,437 4,286,101 3,273,347 6,244,989 45%
2023 14,632,703 4,543,267 3,331,396 6,758,040 46%
2024 15,510,666 4,815,864 3,390,588 7,304,215 47%
Table 21
Annual Projected Gross Income of the Business
E.5. Promotion
Based on the response on the survey, posters (28%), website (27%), and flyers
(23%) are the top three advertising tools that our customers want us to use enable to
reach them.
E.5.1. Poster
Posters will be placed in our store. The design of the poster can able to
catch the attention of the customers because of the information provided as well
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as its aesthetic. Chosen colors are pleasing to the eye and will surely boost the
interest of the customers to eat to our restaurant. Two (2) posters will be produced
which are good for six (6) months costing of 150 pesos/posters.

Figure 5
Relleno Karehan Poster

E.5.2. Website
We are now living in the modern world where surfing to the internet is one
of the easiest way to have quick access. The proponent will be using the free
website in order to reach wider range of possible customers. This will be of great
help for them to know the concept behind Relleno Karehan. It will also provide
good communication relationship in ways that, we will be giving information and
they will be giving comments and suggestions for the product improvements and
other concerns.
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Figure 6
Relleno Karehan Unofficial Website
www.bfbm.com/Rellenokarehan/Rkrestaurant
E.6.3. Flyers
Flyers can convey wide range of possible buyers for it can be brought to
other places. The store will produce 200 flyers per day. These flyers will be
distributed eight (8) times in a month. Flyers will be given in the first three (3)
months of the business until it will get its loyal customers. It will cost 8 pesos per
unit, so as 12,800 will be the total cost per months.

Figure 7
Relleno Karehan Flyer

E.5.4. Gift Certificate

Our store will be giving gift certificates worth (50.00) on the first day of
operation of our business. The recipients of these certificates will be the first 100
customers of our store.
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F. Product Menu
The proponents come-up with the pricing of P 76-219 for all the types of meal offers
as in consideration for the customers’ economic capacity which is 82% based from the
survey results. This indicates that most customers in the target market has the attributes to
cope up with our product pricing. Therefore, the business is feasible for this aspect.
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Figure 8
Product Menu

All orders are initiatively assisted by an employee during customers falling in line for
the further information about our menu and to secure their orders with a cost-effective
and satisfiable manner.
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G. SWOT Analysis
Strengths
 The location of the business is accessible enough to meet our target market.
 The business will easily catch the interest of the customers for Filipino
delighter and wise cost-options.
 The restaurant has its unique products offer that no longer exist from
competitor’s menu.
 The attributes of restaurant are devoted to embrace health awareness while
meeting best quality service in terms of foods being offered and other features
being presented.
 It provides modern communication tools including print ads and website that
will enable to build a connection between the business and the customers.
 For the delighters, Relleno is commonly serve in an expensive way, thus, the
business will give them perception that they can enjoy the products in an
affordable manner.
Weaknesses
 The unfamiliar features of the products
 Maintenance of special features of the store is quite costly
Opportunities
 The proposed product is uncommon to the food system of the market while
most competitors are closely the same when it comes to the feature of
products offer, thereby, the business will have the opportunity to open the
perception and made it as preference of their favorites list, and also to
penetrate the market with the new ideas.
 The business would be the first restaurant that cater Relleno foods product in
an inexpensive manner but highly pleasure your satisfactions.
Threats
 Well-known restaurants within the same vicinity will be the great competitors
of the business.
 The business and the products will be new in the market; it may easily have
good market standing but it may encounter difficulty in terms of sustaining
demand of the customers that may lead to its saturation point or declining
stage.