Chapter 3

Marketing Feasibility

Chapter 3 includes: (1) Market Description, (2) Demand

Analysis, (3) Supply Analysis, (4) General Marketing

Practices (5) Proposed Marketing Plan, and (6) Projected

Sales.

Part One, Market Description, describes the current

and potential demand of the product or service as well as

the characteristics of the buyers.

Part Two, Demand Analysis, describes the present

market demand (amount, volume, capacity) of the products

similar to the proposed product or services.

Part Three, Supply Analysis, presents the present

supply situation and the existing service provider of the

proposed services.

Part Four, General Marketing Practices, describes the

prevailing marketing strategies used by existing businesses

with analogous products or services as the proposed

business.

Part Five, Proposed Marketing Plan, describes the

marketing strategies that the proposed business will adopt

to overcome/circumvent the existing marketing strategies as

described in general marketing practices.

36
 37

Part Six, Projected Sales, presents a projection of

the product sales for the next ten years considering the

prevailing and the forecasted market forces.

Market Description

The working population is the primary target market of

the project. These are the people who belong in the age

group of 20 - 59 years old. Workers now-a-days are goal-

oriented, this makes them susceptible to work pressures and

stress brought by deadlines, quotas, routine works, and job

conflicts. Fortunately, workers today have understood the

value of rest and relaxation. Stress due to high pressured

work environment and lack of exercise has been a major

cause of health illnesses suffered by most people. This is

the main reason why most of the people make time for

themselves to relax and unwind. They usually look for

places that can help them to self-renew and regain

enthusiasm to achieve challenging work goals. They often

visit recreational centers and go out for vacation with

their family or colleagues. Thus, there is a clear need for

a destination that will satisfy the workers' recreation and

relaxation needs.

Valeaon Farmplace will focus its marketing efforts in

serving the domestic market in the first five years of the

 38

operation. However, local demand for the specific business

activity such as restaurant, swimming pool, cottages, and

function hall will be driven from the total population of

Tapaz and neighboring towns, such as, Dumalag and Calinog.

On the other hand, the target market for the resort as a

whole will be taken from the total population of the

province of Capiz, Iloilo, Aklan, Antique, and tourists

arriving in the province of Capiz.

Based on the 2015 Population Census of Philippine

Statistics Authority, the province of Capiz has a total

population of 761, 384 which includes the 51,313 total

population of Tapaz and 29,466 of Dumalag with average

annual growth rate of 1.08%. The province of Iloilo has a

total population of 2,384,415 which includes 60,413 total

population of Calinog with average annual growth rate of

1.28 since 2010-2015.

The project proposed to target the professional

workers and business people who belong to the age group of

20 - 59 years old residing within the stated target

geographic locations. Based on the 2010 Census of

Population and Housing (CPH),

(https://psa.gov.ph/content/capiz-recorded-population-720-

thousand-results 2010-census-population-and-housing, ret.

13 April 2017), 48% of the population belongs to age group

 39

of 20-59 years old or working population. Out of this 48%,

the project will target 5% from the working population of

Capiz, 2% of the working population of Iloilo, .5% of the

population of Aklan, .5% of the population of Antique, and

1% of the tourist coming in Capiz.

Figure 3 shows the target analysis base on geographic

segmentation:

Annual
Working
Total Target Market Target Sales
Geographic Location Population
Population (Percentage) Number of Distribution
(48%)
Guests
Capiz 761,384 365,464 5.0% 18,273 41%
Iloilo 2,384,415 1,144,519 2.0% 22,890 51%
Aklan 574,823 275,915 0.5% 1,380 3%
Antique 582,012 279,366 0.5% 1,397 3%
Tourist Arrival 114,907 114,907 1.0% 1,149 3%
Total 45,089 100%

3% 3% 3%

41%
Capiz
Iloilo

51% Aklan
Antique
Tourist Arrival

Figure 3. Geographic Market Analysis

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Demand – Supply Analysis

Demand Analysis

The increasing number of domestic travelers in the

country is an indicator of the growing demand for

integrated tourism destination. Based on the results of the

2012 Household Survey on Domestic Visitors done by NSO and

DOT, an estimated 25.7 million Filipinos who are 15 years

old and above had traveled to any place within the country

from April to September 2012. These represented 39.2

percent of the total Filipinos who were 15 years old and

over in 2012, 2.6% higher than the results recorded in the

year 2010. Out of the 25.7 million domestic travelers, 27.9

percent were in the age group 15 to 24 while 25.8 percent

were in the age group 25 to 34. These two age groups

combined made up more than half (53.7%) of the total

domestic travelers. Those in ages 35 to 44 years comprised

19.4 percent, while those in ages 45 to 54 years, 14.4

percent. On the other hand, 36.7 percent of this domestic

travelers have cited that their purpose of trip is for

pleasure or vacation https://web0.psa.gov.ph/content/four-

ten-filipinos-15-years-old-and-over-had-visited-placewithin

-country-2012-results-2012. Hence, majority of the recorded

 41

domestic travelers belong to the project's target age

group.

NSO and DOT, 2012 Household Survey on Domestic

Visitors have also showed that 2% or 188,860 of the

domestic travelers whose main purpose of the trip is for

pleasure or vacation from April to September 2012 have

visited Capiz, making the province the top 12 tourist

destination for domestic travelers in the country in 2012.

It is considerably a great demand for the local resorts in

Capiz to address and take advantage of.

The increasing number of professional workers in the

province of Capiz and Iloilo is another indicator of the

growing demand for recreational destinations in the

locality. This market often looks for closer destination to

spend their weekend or vacation with a family or colleagues

due to budget and travel time constraints. Not all people

will be willing to spend too much for fare and travel for

so long and only spend a night at particular destination.

This will sound impractical for a professional worker who

allocates least amount of budget and time for travel. The

professional's busy work schedule limits them to travel

more than two days unless with approved vacation leave,

thus, spending an over-night trip with an hour-away

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destination that can provide remarkable, exciting, and

relaxing experience is much more practical and rewarding.

Supply Analysis

There are numerous resorts and eco-tourism destination

that currently serve the proposed target market. These

resorts and destinations are scattered in different towns

of Capiz. Most of these resorts provide regular amenities

such as accommodation, food, function hall, swimming pools,

and activities such as zip line, boat peddling, floating

cottages, and other beach activities. However, there is no

resort that capitalizes in integrating agricultural tourism

and activity-based trip packages for vacationers in Capiz.

This is an existing demand that is not being served by the

existing resorts and destinations in Capiz. This is where

Valeon Farmplace will position itself in the market.

On the other hand, resorts and destinations in the

province of Iloilo had been gaining popularity for domestic

and foreign tourists; there are several farm resorts that

have been doing well in integrating agricultural tourism

and travel adventure or activities, namely, Garin Farm of

San Juaquin, Iloilo, Damires Hill of Janiuay, Iloilo, and

Ephrathah Farms of Badiangan, Iloilo. However, the local

market are always looking for new experience from new

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destinations, thus, the above mentioned destinations cannot

monopolize the market which means there is still a huge

opportunity for new entrants to capture its target market.

Further, activities such as countryside music jamming over

a bonfire and paintball action are just few of the

distinctive features and experience that Valeon Farmplace

can offer. These activities are not being offered by

existing service providers and are viewed to generate

market demand.

Generally, there is a substantial gap between the

demand and supply of new tourism products, facilities, and

services in the country. Thus, as written in the DOT

Investment Portfolio, (2007), in response to worldwide

demand for integrated tourism development, the Department

of Tourism likewise encourages investments in tourism

estates and eco-zones, historic-cultural heritage projects

as well as ecotourism, agri-tourism, and health and

wellness projects. Hotels, resorts, and other types of

accommodation facilities especially in the regions will

have to be built to address the lodging requirements of

both foreign and domestic travelers.

(http://www.tourism.gov.ph/Downloadable%20Files/Chap3%20Phi

lippine%20Tourism%20Industry.pdf, ret.11 April 2017).

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General Marketing Practices

Marketing plans and strategies varies from every

organization. This is primarily dependent on its

organizational goals and purpose. The following are the

general marketing practices of existing resorts in Capiz

and Iloilo:

Product. Resorts in the locality usually provides

facilities such as accommodation, restaurant, function

hall, pool and offer wide range of exciting activities that

will encourage patrons to indulge. However, there are less

differentiation in activities between the existing service

providers. Most of them offers zip line, boat peddling, all

terrain vehicle (ATV) ride, pool slides or activities that

you can almost see everywhere. Most of the resorts offers

wedding packages and catering services for all occasions

and are common venues for MICE (Meetings, Incentive travel,

Conventions, and Exhibitions), family excursions, parties

and gatherings. The common target market of resorts are

families and domestic and foreign tourist.

Exterior and interior design of the facilities are

usually planned to fit with the theme and ambiance that the

owners would want to convey or to the type of the target

market that the business would like to attract.

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Architectural concept ranges from traditional to modern and

even international architectures. International standards

are also integrated in the operation to meet the global

demand.

Price. Pricing strategies are basically based on

going-rate and cost-plus pricing method. This strategy is

common among the resorts in the area for them to stay

competitive and profitable. Prices vary depending on the

star classification of the resort. Star classification

provides perceived value of the services that the resort

may offer. However it is expected that resorts offers

their products and services higher than their indirect

competitors due to higher overhead cost being incurred by

this type of businesses.

Place. Business resorts are usually located within the

city to serve the business people, business entities, and

agencies within the locality. Inland and farm resorts are

usually located in municipalities. These resorts are

usually far from the key cities but still gaining

popularity because of its authentic countryside ambiance.

Generally, resorts offers attractions and activities so it

is not always necessary to locate it within the city for it

to capture its target market. People are willing to travel

just to experience and explore new destinations.

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Promotion. Word of mouth is one of the most used

promotional strategies of local businesses in Capiz. Resort

owners are usually active in participating in exhibits and

expositions to improve its exposure to its target market.

Print advertising in the form of brochures, flyers, and

tarpaulins are still being used. Radio and television

advertising are also being used during special events.

Large scale resorts have also invested in building their

website for them to have online presence and capture

national and international market. Most resorts are also

making use of social media such as facebook, instagram, and

twitter to stay connected with their potential and existing

customers. Discounting strategy during off season and for

government and business to business transactions are also

being offered.

Most of the resorts are also partnering with travel

and tour operators as part of their marketing hand. Travel

and tours agency are paid through commission for every

confirmed booking.

Some resorts also provide sponsorships and even

organize events such as eat-all-you-can, summer camp, and

parties relevant to holidays and occasions in different

time of the year.

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Proposed Marketing Plan

Product. Valeon Farmplace will take advantage of

product differentiation strategy to set its products and

services apart from the existing industry players. The

project will provide a remarkable experience to all its

guests by creating a destination that offers a fusion of

recreation and wellness activities in a farm setting. This

is an entirely fresh offering for the people of Capiz and

Iloilo.

The project will maintain its banana and vegetable

plantation as part of its profit center and major

attraction for visitors. The countryside setting,

structures, and landscape is viewed to provide a relaxing

ambiance for all the guests. Villa type accommodation will

be available for guests who wish to spend a night in the

farmplace. To increase the number of night staying guests,

night activities will be organized in the farmyard during

Saturday night. Valeon Farmplace will be the first resort

in Capiz to offer a "Bonfire Party". This aims to promote

socialization among the guests of the farmplace and to

provide a time where everyone can get acquainted with other

people and meet new friends and even business partners. The

party will start with a "Barbeque Dinner" around the

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bonfire to be followed by a music jamming session. Guests

will be invited to sing-along and take part in the music

jamming activity. Fun and exciting games will be interposed

from time to time to stir up the fun.

Another distinct activity that the project will offer

is the sport called paintball. Valeon Farmplace will have

the first Paintball Field in Capiz. This is a fun activity

for recreation and team building. Rentable safety gears are

available for guests who wanted to experience the thrill.

The natural slope and terrain of the hill where the

paintball field will be placed will intensify the action.

To complete guest's vacation, it's always better to

end the day or the trip with a relaxing massage. The

resort will initially offer Swedish Massage, Thai Massage,

Aroma therapy, and Traditional Hilot depending on the need

of each client. Massage therapists from the community will

perform the required therapy. Massage can be performed

either in the guest's room or at the massage cabin.

For the local market, the project will serve as a

breakthrough in the food industry of Tapaz; the project

will have the first and only casual dining restaurant in

the locality. Local patrons no longer need to wait for

weekend or travel for a long time just to experience good

food in a much comfortable ambiance. Hence, the place will

 49

make the locals feel how it feels like to be served as

seňoritos and seňoritas.

The project is also viewed to have the largest

swimming pool in the locality. There will be a separate

pool for children and adults. Cottages shall be in place to

accommodate day tour guests. This will serve as a perfect

venue for family gatherings, celebrations, and excursions

for locals given that Tapaz is far from beaches and

recreation areas. The pool side will also serve as a venue

for the "Acoustic Night" event every Friday. This is one of

the key events that locals and guests will truly enjoy.

The project is also proud to bring in the largest

function hall in the locality. This is going to be equipped

with convention facilities such as sound system, lighting,

and multimedia projector. The function hall can accommodate

as much as 250 to 300 guests and is perfect for big events

and celebrations. Wedding and birthday packages shall be

offered for the locals who wish to celebrate their

important milestones in life in Valeon Farmplace.

Making these facilities available in the local market,

Valeon Farmplace will be able to uplift the lifestyle of

the locality.

Price. Price can influence customer buying behavior,

thus well-defined pricing strategy is necessary to remain

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competitive in the market. Valeon Farmplace will make use

of cost-plus pricing strategy while taking into

consideration the going rate prices of products of the

existing service providers of the same class. Product

prices will be set closely with the current selling price

provided profit margin will not go lower than the required

percentage. This is to ensure that customer decision will

not be based primarily on the price of the service itself

but in the value that they will receive in exchange of the

money that they will spend.

Each particular service will have its individual rates

but in terms of marketing, the proponent will make use of

package rate pricing to cover up the individual rates set

for each service or activity. By the use of activity-based

package pricing, prospected vacationers will focus their

attention into the set of activities that they are about to

experience out of buying the package instead of the price

of the individual activity included in the package.

Payment can be made through cash, debit card, and

credit card. The management will also accept checks from

corporate and government clients.

Place. Tapaz as the projects target location is an

hour and a half away from Iloilo and Roxas City where

majority of the target market will come from. The said

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location has a considerable distance and travel time for a

guest to do a day tour activity. The business location is

just along the highway where buses pass through via Roxas

City and Iloilo City. Being at the center of Panay Island

makes the location of high market potential. In the long-

run, the project may even capture international market from

Iloilo International Airport since Tapaz is just an hour

away from Cabatuan, Iloilo. Being quite far from the city

makes the place an authentic location for the brand image

that it's trying to project.

Booking outlets shall be placed in key cities

specifically Iloilo and Roxas City through the farmplace's

partner local travel agencies. The company will also

partner with national and international booking agencies

such as Agoda and booking.com. The marketing officer will

also create linkages with travel and tours operators in key

cities in Luzon and Mindanao. Ten percent (10%) commission

will be given to accredited travel agency for every

confirmed booking. Online reservation and booking shall

also be available via company website. Through these, the

company will be able to get close to its target market and

will enable ease of booking transaction.

Promotion. Strengthening public and media relations

are the two key strategies that will be employed to further

 52

improve the awareness of the target market about the

services that the project can offer. Word of mouth is still

one of the most cost-effective promotion strategies ever

known, thus, needs to be taken advantage of. Hence,

employees will be trained to ensure that all services are

delivered in an excellent manner. The project will also

maximize the use of online marketing strategy to capture

local and international market. The project shall also

actively participate with activities of Association of

Hotel, Resorts and Restaurants in Capiz. Establishing

strategic partnership with Local Government Units and

Provincial Tourism and Cultural Affairs Office shall be

prioritized for better exposure and promotion. The project

shall also establish alliances with existing tourist

attraction and destination in Tapaz such as Marugo Mountain

Resort, Banana Plantation at Bagong Barrio, Tapaz, Dragon

Fruit Plantation in Brgy. Taft, Tapaz, Pottery makers and

the Gawad Kalinga Village in San Nicolas, Tapaz to market

the municipality of Tapaz as whole.

Massive awareness campaign shall be implemented to

make the target market aware of the existence of the

project. The following are the advertising and promotion

strategy that the project will adopt:

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Table No – Normal Font,

Table 3 Align Left above each table
[2 spaces] Table Name – Italic Font,
Align Left above each
Proposed Advertising and Promotion Activities table
[2 spaces]
Advertising and Promotion Strategy
Pre-Implementation Promotion
Activity Description/ Schedule of Budget
Medium Implementa- Cost Total
tion Assumption Cost
Soon to Set-up facebook At the *Cost
Rise Online official page start of covered with
(Social and constructio pre-
Media) periodically n onwards implementa-
Presence update likers tion
about project adminis-
completion and trative
activities that cost.
customers
should look
forward.
Soon to 3x6 Tarpaulin 2 months Tarpaulin
Open signages shall before the Price @ 360 7,200.00
Signages be posted in Grand each x 10 x
strategic Opening & 2 2 phase
location. (On weeks
site, Iloilo before
Ceres Terminal, Grand
Ungka Bus Opening Advertising
Terminal, Permit Cost 5,000.00
Roxas City (allocated
Terminal, Roxas budget)
City Plaza,
Nasunogan Dao
Intersection,
People's Park -
Roxas City,
Jaro Plaza, SM
Manduriao Over-
Pass, Tapaz
Plaza)
Soon to 1 day flyering 1 week 2 persons
Open Flyers activity in before per area 2,100.00
Public Areas of opening @350.00x3
Tapaz, Iloilo date for target areas
City and Roxas Tapaz & 2 Flyer @
City. This weeks 1000pcs per 7,500.00
contains grand before person =
opening date opening 6,000pcs @
and discounted date for 1.25
packages by Roxas City
 54

bringing the and Iloilo

flyers. City

Partner- Coordinate with 2 months *10%

ship with leading travel before the commission
Travel & agencies in 2 opening for every
Tour key cities to date booking -
Agencies in include Valeon onwards cost will
Iloilo City Farmplace in reflect on
and Roxas their local sales
City tour commission
itineraries schedule
and/offer
Valeon's
Packages
Website Administer Website Package deal
Develop- official design price with 20,000.00
ment company website process website
that contains will start developer
all the 6 mos
services, before the
packages and opening
rates. This date and
will work with will be
the facebook viewed
page, twitter online 1
and instagram month
official before the
account. grand
opening
date onward

TOTAL 41,800.00

Grand Opening Promo

Sponsor- Opening date Grand *Sponsorship

ship in shall be Opening Day Budget 20,000.00
Sirinadya matched with (January) Allocation
Festival Sirinadya
Festival of
Tapaz and offer
the place as a
venue for one
of the
activities.
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Discount 10% Discount in Grand *see Opening

Coupons room Opening Day Day Discount
accommodation Schedule
and 5% discount
in Food and
Beverage for
walk-in clients
Press Organize a Grand Food: 50pax
Conference media press Opening Day @ 150 per 7,500.00
(Tri-Media conference and head
Invitation) provide free
Media Token
lunch for media
: 10 Station 10,000.00
people and
@ 1000.00
invited
per station
government
agency
officials.
Free Free swimming Whole
Swimming for children Opening
below 10 years Week
old
Groufie *see promo Grand Cash Prize
Craze Promo mechanics Opening Day 2,000.00
up to the
1st 30
days.

Total 39,500.00

Regular Promotion Activities

Schedule of
Description/ Cost Annual
Strategy Implementat
Medium Assumption Budget
ion
Online Continuous Whole year * Cost of
Advertising update and round administer 5,000.00
administration ing the
of company's website
website, and online
facebook page, account is
twitter and covered
instagram under the
official salary of
account. marketing
staff.
Annual
domain and 10,000.00
hosting
fee
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Travel & Strenghhen Whole year *10%

Tours partnership round commission
Agency leading travel for every
Partnership agencies in 2 booking -
key cities to cost will
include Valeon reflect on
Farmplace in sales
their local commission
tour schedule
itineraries
and/offer
Valeon's
Service
Packages
Exhibits Join trade 4 times a Max budget
promotions and year of 20,000.00
exhibitions (preferably 5,000.00
organized by 1 per per
resort quarter) exhibit
associations
and tourism
office
Sponsorship Provide Annual
sponsorship for Budget 10,000.00
relevant
municipal and
provincial
tourism
activities
Company Make service
Brochure brochure with 10,000.00
tariff rates
available at
the information
desk and with
partner booking
agencies
Event Organize event 1 - 2 weeks 2,000
Signages monthly. before the tarpaulin 24,000.00
Signages shall event printing
be posted in schedule budget
strategic monthly
areas.
Sticker Ads Post sticker 1 cycle per 100 pcs @
(Bus, ads in vehicle year 90.00 each 9,000.00
Jeepney, entrances
Posting
Tricycle)
fee annual 10,000.00
budget
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Personal Personal Whole year *Cost

Selling offering of round covered
service under
packages to overhead
private cost
entities, NGOs assumption
and government s of
offices marketing
department
TOTAL 98,000.00

The following is the list of Veleon’s "Groufie Craze”

Promo Mechanics: (1) Make an artistic collage of your

thrilling HD quality group photos in different amenities of

Valeon Farmplace and write a meaningful caption; (2)Like

our FB Page “Valeon Farmplace Official” ;(3)Submit your

photo at [email protected] on or before (specify

date – 15 days after the grand opening date) including the

following details: Full Name, Age, Address, Contact No. and

FB Name and digital copy of at least 500 worth or service

receipt from Valeon Farmplace; (4) Qualified entries shall

be posted on Valeon Farmplace official page on (specify

date – the day after the deadline) and shall be open for

liking and sharing activities real time; (5) The entry

sender will receive a text notification once their entry

had been successfully posted; (6) The entry that will have

the most number of like and share by 12 noon of (specify

date - 30 days after the opening date) will be declared as

a winner; (7) The winners are entitled to receive the

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following prizes: 1st Place: 2,000.00 cash and 1,000 worth

of gift certificate, 2ndPlace: 1,000 worth of gift

certificate’ 3rd Place: 500 worth of gift certificate; (8)

The set of winners will be posted on our official FB page

and shall be notified via email and text message within 48

hours;(9) The winner should present a government issued ID

and personally claim their prizes within 60 days after the

announcement. Unclaimed prize within the specified period

shall be forfeited.

Projected Sales

The following table shows the projected weekly and

monthly departmental sales during the first year of

operation considering the lean and peak season. The

proponent assumed that there will be seven months of peak

season and five months of lean season.

The estimates were based on the current demand pattern

as shared by the employees/owners of existing similar

businesses in Capiz during the conduct of initial

unstructured interview.