Chapter 3
MARKETING FEASIBILITY
Marketing is important in every business since it contributes greatly to the
success of the organization. Every business needs to be creative in their
marketing activities in order to survive competition and make their product or
service recognized by the public. This chapter will discuss the marketing aspects
of JASE Pastries. This includes the project description, the target market of the
business, the demand, supply, pricing of the product, and the marketing
programs of JASE Pastries.
Project Description
JASE Pastries is a small bake shop located at 128 E. Rodriguez Highway,
Rodriguez Rizal. The theme of the shop is influenced by famous K-pop idols to
make it more attractive to customers, especially to teenagers and children. The
business will produce pastries that are made healthier for more nutritional
benefits of the customers. Malunggay powder will be added to the baking
ingredients that to make the pastries healthier. Malunggay powder is considered
a good source of iron, calcium, vitamin C, vitamin B6, and riboflavin and has
notable amounts of potassium, vitamin A, vitamin E, and magnesium. The
business will produce pastries such as cookies, cupcakes and roll cakes. The
establishment of this project aims to promote healthy eating to the residents of
Rodriguez Rizal.
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Target Market
In order for a business to attract customers, one important thing to do is to
study about your potential customers. JASE Pastries put time and effort to
understand the needs, wants and preferences of customers in order to meet their
satisfaction on the JASE Pastries products.
Geographic Characteristics
JASE Pastries target market is mainly the people who live at Rodriguez
Rizal, especially those who lives at Barangay San Jose. According to the 2020
census by PhilAtlas, the total population in Rodriguez Rizal is 443,954 and
Barangay San Jose has a total population of 141,819. The said barangay is one
of the populated barangays of Rodriguez Rizal therefore, JASE Pastries would
have a lot of potential customers there.
Behavioral Characteristics
Since eating pastries is one of the habits of every Filipino, it became part
of every special occasion like birthdays, parties and even became one of the
everyday snacks of everyone. JASE Pastries will produce some of the most
eaten pastries such as the cookies, cupcakes and roll cakes.
The theme of the shop is influenced by K-pop because one of JASE
Pastries target market are teenagers who are a big fan of K-pop trends. JASE
Pastries products are made healthier because the shop promotes healthy eating
and also, to attract parents who want their children to eat foods that they enjoy
and will also give them healthy benefits.
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The fact that JASE Pastries products are healthier is to also capture the
attention of those health-conscious individuals; those who’s lifestyle are focused
on getting the right nutrition. If they are part of JASE Pastries market, they can
help in promoting healthy eating and spreading awareness regards to JASE
Pastries products.
Income
Lower household income has been consistently associated with poorer
diet quality compared to those of higher income earners. JASE Pastries sets the
prices of products at a level that both low-income and high-income earners have
the opportunity to buy JASE products.
Age
Desire for sweet taste spans all ages; that is why JASE Pastries
considered people aged 5 and above to be the target market. Children love
sweet foods, in particular ages from 5 to 10 years old based many of their food
choices on familiarity and sweet taste. Young people which consist of
adolescents and youth ages from 10 to 19 years old, eat sweet foods because it
can give pleasure response in their brain and these foods can trigger feel-good
brain chemicals, including dopamine. For adults, ages from 18 and above usually
have eating occasions were more likely to include snack foods that required little
preparation, for example cookies, and other baked goods.
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Demand Study
Figure 3
Respondents Demographic Profile: Sex
The figure shows that out of the 100 survey respondents of JASE
Pastries, 47 of them are male and 53 are female.
Figure 3.1
Respondents Demographic Profile: Age
The figure shows that the respondents of the JASE Pastries survey age
ranged from 10 years old to 75 years old.
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1. Do you eat pastry products?
Figure 3.2
Respondents who eat pastry products
The figure shows that all the 100 respondents of JASE Pastries survey eat
pastry products. This result implies that the product will be viable to the target
customers.
2. How often do you eat pastry products per day?
Figure 3.3
How often the respondents eat pastry products a day
The figure shows that out of 100 respondents, 34 answered that they eat
pastries once a day; 64 people eat twice a day; only 1 respondent eats pastrie s
thrice a day and the other 1 respondent eat pastries four or more times a day.
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3. How often do you purchase cookies?
Figure 3.4
How often respondents purchase cookies
The figure shows that out of 100 respondents, 44 answered that they
purchase cookies daily; 52 answered that they purchase cookies weekly, and 4
answered that they purchase cookies monthly.
4. How often do you purchase cupcakes?
Figure 3.5
How often respondents purchase cupcakes
The figure shows that out of 100 respondents, 27 respondents purchase
cupcakes daily; 64 respondents purchase cupcakes weekly, and 9 respondents
purchase cupcakes monthly.
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5. How often do you purchase roll cakes?
Figure 3.6
How often respondents purchase roll cakes
The figure shows that out of 100 respondents, 4 answered that they
purchase roll cake daily; 45 purchase roll cake weekly, and 51 answered that
they purchase roll cake monthly.
6. When buying pastry products what is important to you?
Figure 3.7
Most important to respondents when buying pastry product
The figure shows that out of 100 respondents, 7 answered that the
appearance of the products is more important to them when buying pastry
products;1 respondent answered packaging is important when buying pastry; 3
answered that price is important when buying pastry and 87 answered that the
taste of the products is the most important when buying pastry products.
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7. Would you buy pastry procudts with Malunggay ingredient?
Figure 3.8
If respondents would buy pastry products with malunggay
The figure shows that out of 100 respondents, there are 98 who answered
that they would buy pastry products with malunggay ingredient, while 2 of them
answered that they wouldn’t buy pastry products with malunggay ingredients.
8. How much are you willing to pay for Malunngay cookies of JASE Pastries per
box?
Figure 3.9
The amount respondents willing to pay for JASE Pastries cookies
The figure shows that out of 100 respondents, there are 82 respondents
willing to pay PHP 75.00 -PHP 80.00 for JASE Pastries cookies per box, while 18
respondents are willing to pay PHP 85.00 - PHP 90.00 for cookies per box.
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9. How much are you willing to pay for malunggay cupcakes of JASE Pastries
per box?
Figure 3.10
The amount respondents willing to pay for JASE Pastries cupcakes
The figure shows that out of 100 respondents, there are 44 who are willing
to pay PHP 85.00- PHP 90.00 for JASE Pastries cupcakes per box, while 56
respondents are willing to pay PHP 95.00- PHP 100.00 for cupcakes per box.
10. How much are you willing to pay for malunggay cupcakes of JASE Pastries
per box?
Figure 3.11
The amount respondents willing to pay for JASE Pastries roll cakes
The figure shows that out of 100 respondents, there are 46 respondents
who are willing to pay PHP 90.00- PHP 95.00 for JASE Pastries roll cake, while
54 respondents are willing to pay PHP 100.00 - PHP 105.00 for roll cake.
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Measuring Market Demand
JASE Pastries market is people living in Rodriguez, Rizal (100 people).
Out of 100 people, all of them eat pastry products. Out of 100 respondents who
eat pastry, 2 of them are not familiar with the JASE Pastries products
(malunggay pastries). For the starting point of JASE Pastries, it will cater first the
100% of the remaining 98 people as the potential market and increase gradually
as the market get to know JASE Pastries products and develops market
acceptance.
Table 2
Estimated Sales
Pastry Product No. of box No. of In Total Sales in Pesos
of order box of Pesos
(per day) order
(per
week)
Roll Cake 6 42 PHP PHP 4,410.00
105.00
Cookies (Box) 40 280 80.00 22,400.00
Cupcakes (Box) 27 189 95.00 17,955.00
Total (per week) 511 boxes of pastries per week PHP 44,765.00 gross
sales per week
Total (per month) 2,044 boxes of pastries per month PHP 179,060.00 gross
sales per month
Total (per year) 24,528 boxes or pastries per year PHP 2,148,720.00
gross sales per year
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Supply
Table 3
Measuring supply of Roll Cake
Pastry Shop No. of roll cake In pesos Total sales
ordered (Per week)
Aroma Bites 70 PHP 85.00 PHP 5,950.00
Bakeshop
El Richard 56 95.00 5,320.00
Bakeshop
Sande’s Bakeshop 63 75.00 4,725.00
Red Ribbon 56 150.00 8,400.00
Goldilocks 49 155.00 7.595.00
TOTAL per Week 294 31,990.00
TOTAL per Month 1,176 127,960.00
TOTAL per Year 14,112 1,535,520.00
Estimated calculation based on the observation of Pastry shops near at 128 E.
Rodriguez Highway, San Jose Rodriguez Rizal.
Pastry Shop Market Share of Roll Cake
Aroma Bites Bakeshop
0.12 0.21 El Richard Bakeshop
14% Sandes Bakeshop
Red Ribbon
0.17 Goldilocks
0.17 JASE Pastries
19%
Figure 4
Pastry Shops Market Share of Roll Cake
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Table 4
Measuring supply of Cookies
Pastry Shop No. of Cookies In pesos Total sales
ordered (Per
week)
Aroma Bites 350 PHP 54.00 PHP 18,900.00
Bakeshop
Sande’s Bakeshop 300 60.00 18,000.00
El Richard - - -
Bakeshop
Red Ribbon - - -
Goldilocks - - -
TOTAL per Week 650 36,900.00
TOTAL per Month 2,600 147,600.00
TOTAL per Year 31,200 1,770,200.00
Estimated calculation based on the observation of Pastry shops near at 128 E.
Rodriguez Highway, San Jose Rodriguez Rizal.
Pastry Shop Market Share of Cookies
Aroma Bites Bakeshop
El Richard Bakeshop
30% Sandes Bakeshop
38%
Red Ribbon
Goldilocks
JASE Pastries Shop
32%
Figure 4.1
Pastry Shops Market Share of Cookies
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Table 5
Measuring Supply of Cupcakes
Pastry Shop No. of Cupcakes In Pesos Total Sales
ordered (Per
week)
Aroma Bites 210 PHP 90.00 PHP 18,900.00
Bakeshop
El Richard 245 96.00 23,520.00
Bakeshop
Sande’s Bakeshop 245 90.00 22,050.00
Red Ribbon - - -
Goldilocks - - -
TOTAL per Week 700 64,470.00
TOTAL per Month 2,800 252,880.00
TOTAL per Year 33,600 3,094,560.00
Estimated calculation based on the observation of Pastry shops near at 128 E.
Rodriguez Highway, San Jose Rodriguez Rizal.
Pastry Shop Market Share of Cupcakes
Aroma Bites Bakeshop
21% 24% El Richard Bakeshop
Sandes Bakeshop
Red Ribbon
Goldilocks
28% JASE Pastries
28%
Figure 4.2
Pastry Shops Market Share of Cupcakes
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Table 6
Projected Demand for 5 Years
2022 2023 2024 2025 2026
25,200 27,720 30,492 33,541 36,895
The base demand is pegged at 75 customers per day with the assumption
that they will buy at least 1 box of each pastry in a day. If this number is
multiplied by 7 days, the demand will be 525 customers in a week. If this number
is multiplied by 4 weeks, the demand figure will be 2,100 customers in a month. It
can be gleaned that there will be a total of 25,200 succeeding years that will
increase by 10% per annum.
Table 7
Projected Supply for 5 Years
2022 2023 2024 2025 2026
24,528 26,981 29,679 32,647 35,912
The supply base is pegged at 511 orders of pastries per week; multiplied
by 4 weeks the total supply would be 2,044 orders of pastries per month. From
this, we will multiply it by 12 months, which would arrive at 24,528 orders of
pastries in a year. The succeeding years in this supply table were computed by
increasing supply at 10% per year. We chose a higher increase rate for supply
due to increased competition expected to spur industry growth in the coming
years.
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Demand-Supply Gap
Demand
49% Supply
51%
Figure 5
Demand-Supply Gap
Pricing
JASE Pastries products prices range from PHP 80.00 to PHP 105.00 per
order. The prices of pastries were based on the production cost computed.
Product Price
JASE Pastries Cookies (6 pieces per box) PHP 80.00
JASE Pastries Cupcakes (6 pieces per box) PHP 95.00
JASE Pastries Roll Cake PHP 105.00
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Marketing Program
Customers are important to every business; without them business would
not exist. Customers have an important role in business because they are the
one who drives your business direction, whether it will gain success or failure. In
order for a business to achieve its goal, it is very important to let customers know
about your business.
JASE Pastries will introduce the business to the customers by posting
information about the products it will produce and sell. A sign board with JASE
Pastries name will be put on the store so that the customers can easily recognize
the store. Tarpaulin will be posted outside the store containing information about
the product and its price. JASE Pastries also created social media accounts and
posted pictures of the products. Facebook, Instagram and Twitter are the official
social media accounts of the store and customers can follow the store through
the name JASE Pastries. This is also the fastest way where customers can
inquire about JASE Pastries products by sending messages to the store’s official
pages. JASE Pastries will also make flyers advertising the products. It will be
giveaway to the public for the wide dissemination about the business.
Lastly, JASE Pastries will give loyalty cards to customers who patronize
the store’s products. Every time the customers purchase on the shop, their
loyalty card will be stamped. If they have completed the needed stamps on the
loyalty card, the shop will give them free pastries. This is a simple way for JASE
Pastries to value customers and thank them for supporting the business.
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Figure 6
JASE Pastries Tarpaulin
Tarpaulin posted outside the JASE Pastries shop containing information
about the products and its prices.
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JASE Pastries Social Media Accounts
Figure 7
JASE Pastries Facebook Page
Figure 7.1
JASE Pastries Twitter Page
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Figure 7.2
JASE Pastries Instagram Page
Facebook, Instagram and Twitter are the official social media accounts of
the store and customers can follow the store through the name JASE Pastries.
Customers can send messages for inquiries and feedback about the shop and its
products through these social media accounts.
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Front
Back
Figure 8
JASE Pastries Flyers
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Figure 9
JASE Pastries Loyalty Card
Loyalty card terms and conditions:
1. Avail this loyalty card on first purchase on the shop for free
2. The card has no expiration date; as long as the card is still in good
condition, it is acceptable.
3. Kindly present the card upon ordering to receive the stamp.
4. One stamp for every accumulated PHP 100.00 purchases.
5. No stamp will be issued for backdated purchases.
6. No combining of incomplete loyalty cards.
7. Stamps/Points cannot be converted into cash.
8. We will not be held liable for lost or stolen cards.
9. Ten (10) complete loyalty cards are equivalent to 1 box of
cookies/cupcakes valid until the last day of December.
