GUIDE FOR WRITING PROJECT FEASIBILITY STUDIES

Chapter 3
Market Study

The Market Study, because it is the prime source of information in decision-

making, i.e., whether or not the project may be pursued, the reliability of the market
study is the key to the reliability of the entire feasibility study.

The primary objective of the marketing study is to identify whether there is

adequate demand for the product and that the project shall enjoy competitive
marketing position. This aspect establishes the annual capacity of the product which
is expected to be sold by the project in the future, the selling price at which the
product can be sold, and the marketing program which has to be adopted in order to
sell the given quantity at the given price. To attain these objectives, a detailed study
of the following must be accomplished:

Introduction

Target Market Description

This section identifies and provides a detailed description of the target market
in terms of geographical location, composition (age group, gender, economic status,
family size and educational and employment status as needed) and population size. It
also presents and expounds on the bases for the target market decision.

Marketing Program and System

This section presents the existing marketing practices and strategies of

competitors and the project’s proposed marketing program vis-à-vis the competitor’s
programs.

The proposed marketing program must be simple yet realistic and practical to
implement. It includes proposals on marketing personnel/sales force and their
salaries, benefits and incentives, terms and condition of sales, pricing strategies,
channels of distribution, branding and packaging, promotions and advertising plans
and other factors deemed essential in the execution of an effective marketing
program. All costs directly related and incidental to marketing are presented. An
objective assessment of the project’s competitive position must also be presented.

Drawings, sketches and layouts must accompany the marketing proposals.

Important:

A minimum of 10 pages is preferred.

Survey Questionnaire
 Reasons in conducting a survey in feasibility study

 To know if the target market is willing to buy or purchase the proposed

product.
 To know if the proposed product is affordable by the target market.

General Format/ Guidelines

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SAMPLE Chapter 3
 CHAPTER 3
MARKET STUDY
Introduction
This chapter contains data about the company’s target market, the supply and

demand of the competitors, and the analysis where the product's supply and demand

and whether the business can achieve a competitive market position. It also contains

the marketing program and strategy introduced, and the projected sales of the goods.

This chapter aims to be the primary source of information in deciding whether to

undertake the project or not.

Target Market Description

Bataan is one of the provinces located in the Central Region of the Philippines.

Bataan's population in the 2015 census was 760,650 people, with a population density

of 550 per square kilometer, or 1,400 per square mile. The province has a total of 12

municipalities and one city that is divided into two districts. District one being:

Dinalupihan, Hermosa, Orani, Samal, Abucay and Morong. District two: Pilar, Orion,

Limay, Mariveles, Bagac, and the city of Balanga, which is the capital of the

province.

Balanga, officially Balanga City is a 4th-class town and the capital of Bataan

province, Philippines. It has a growing population of 96,061 in recent statistics, which

makes it the largest population of all the municipalities in Bataan. Aside from its

continuous development, the proponents chose the said city to be their target market

as it can be a great source of the requisite recourse to the business. A greater

population has the benefits of being able to offer a wider range of customer products

and niches.
 The proponents will be focusing on age groups 20-39 years old, consisting of

31,259 out of population of Balanga city as the target market consumers of the

product. As a person enters their adolescence phase, they become more conscious of

what they eat and how they can properly maintain their body image and continue it as

they age. Also, in these age groups, they becomerisk-takers in terms of trying out new

products thus aligning with JML Shack’s unique food innovations. According to

KantaWorldpanel (2017), Filipinos are beginning to be more health conscious in their

meal choices and drinks to develop a healthier lifestyle to avoid diseases and to also

improve body image.

Attracting new customers is one of the ways to increase your sales. Building your

business in a place with a large population and knowing the necessities and

preferences of the eyed consumers will give the business a higher chance to introduce

their products in a larger crowd and creating more profit.

Figure 3.1 City of Balanga Map

MARKETING PROGRAMS AND SYSTEM

MARKETING PROGRAMS AND SYSTEM

Having an effective marketing strategy is the path to a successful business. The

success of the organization depends on how it reacts to the present and future

challenges, and how the business becomes profitable. The company's marketing plan

and strategy reflects its response to vulnerabilities and challenges.

The business focuses on overcoming challenges by developing and enhancing the

product in a conational way, as well as having a good relationship with suppliers and

clients. Factors such as selling terms and conditions, pricing strategy, distribution

channels, promotions and promotional strategies, personnel / sales force, branding and

packaging to be able to advance their goals.

The practitioner of this project had provided ideas to consider the effective

marketing system with regard to additional factors. These are:

 The general manager must wisely compensate for all inflows and outflows.

 Market penetration gives priority to the whole customer around the target area.

 The promotions will try to reach out to the market outside the target area.

 Try to do some experiments with new and delicious products.

MARKETING PERSONNEL

A marketing manager is one of the most essential employees that every

business must have for it to achieve its goals and objectives. Therefore, seminars and

training must be provided form them to enhance their marketing skills. Mandatory
benefits and incentives, whether monetary or non –monetary, will also be given to

keep them motivated.

Duties of Marketing Manager

- Manages all marketing for the company and activities within the marketing

department.

- Coordinates marketing campaigns with sales activities.

- Plans and implement promotional campaigns.

- Prepares online and print marketing campaigns.

- Monitor and report the effectiveness of marketing communications.

TERMS AND CONDITION OF SALES

The company will require full payment in every order. It is to collect

immediately the cost of products that has been ordered and properly manage cash

inflows. In addition, company will give discount or freebies for bulk orders to

encourage consumer loyalty.

PRICING STRATEGIES

The proponents of JML Company will use bundle pricing: where price

negotiation is focused on selling multiple products for a lower rate than the customer

might actually face if they were to buy it individually. In this way, the company will

reduce its inventory more effectively.

In addition, the proponents will often track production costs, such as raw

materials, direct labour costs and overhead expenses. The cost of production should

not exceed the selling price in such a way that it is equal enough for both owner and
consumers. In this way, the proposed project will make it possible to have a fair

market share and to withstand competition.

CHANNELS OF DISTRIBUTION

The channel of distribution is the business’ bridge to the market and direct

distribution of the product is not new particularly to the starting small businesses. On

the other hand, the proponents agreed to directly distribute products through kiosk in

order to meet the cost-effective objective of the business. The proponents of this

project decided to establish (1) kiosk in the City Proper of Balanga at Robinsons

Galeria Victoria 2/F where there is high consumer traffic.

Monday Tuesday Wednesda Thursday Friday Saturday Sunday

10 a.m. 10 a.m. 10 a.m. 10 a.m. 10 a.m. 10 a.m. 10 a.m.

Time – 9 p.m. – 9 p.m. – 9 p.m. – 9 p.m. – 9 p.m. – 9 p.m. – 9 p.m.

BRANDING AND PACKAGING

Branding can help customer to distinguish and identify the products to other

products and service. The proponents will practice consistency in packaging to

establish a brand that customers will easily recognize. This will help to promote our

company’s product and encourage customer loyalty.

Nowadays, one of the factors that customers consider in choosing products is the

packaging – its convenience, appearance, and environment contribution. In line with

that, the proponents designed a packaging with simplicity, making it easy for

customers to recognize the product and the brand. The packaging materials proposed

were also environment-friendly since most are made of carton.

 The expected amount that will be spent for the packaging of the products

is 50,000 pesos every year.

Figure 3.2 Paper Cups Figure 3.3 Carton Boxes

PROMOTIONS AND ADVERTISING PLANS

Like any other food items, burger with tuna sisig patty and tofu fries will be

marketed to potential customers using a simple recipe. Those include the use of

tarpaulins, advertisements on local radio in Bataan, and the use of social media to

make the public aware of the presence of the business. In particular, the quality of the

products to be sold is exceptional and best that consumers could not withstand when

tried and tasted

For promotions and advertising activities, the company will spend 30,000

pesos. Flyers would cost 5,000 pesos, hanging of tarpaulins will be 10,000 pesos

and 15,000 pesos for the radio station advertisements.

JANUARY

January 1-31

 Grand opening

The JML Shack will give the first 50 customers a free Tuna Seasig Burger on

their second purchase and the next 100 customers will get a free tofu fries for every

purchase of Tuna Seasig Burger, inclusive of all the add-ons.

 FEBRUARY

February 13,14& 15

 A Couple's Healthy Heart

Every couple will get to buy our Tuna Seasig Burger for 50% of its price for a

tasty and affordable date this heart season.

MARCH-MAY

March 2-May 31

 Summer Vibes

JML Shack will offer new set of drinks which will be called Tropical Punch that

will be perfect for summer as thirst quencher.

JUNE

June 1-20

 Back to School Promo

Students who will purchase our Tuna Seasig Burger with tofu fries and drinks

combo will get a 15% discount as a welcome for another school year. Student I.D.

should be presented to get the promo discount.

JULY-AUGUST

July 1- August 30

 Let the Rain Kiss You

Jalapeno as an add-on on Tuna Seasig Burger will be offered for only 8 pesos to

defeat the coldness caused by the rainy season.

SEPTEMBER-DECEMBER

September 1-December 8

 BER Months are Coming

 JML Shack will release Tuna Seasig Burger stamp for every purchase of the

burger. Collecting 20 stamps will get the customers a Christmas edition tumbler

available only in JML Shack.

DECEMBER

December 9-25

 Back to back Celebration

To celebrate Christmas and end of the year, customers will get a free upsize drink

for every purchase of Tuna Seasig Burger Combo.

SWOT ANALYSIS
 TUNA SEASIG BURGER AND TOFU FRIES SURVEY and EVALUATION
SHEET
Dear Customers,
We, the proponent of Tuna Seasig Burger and Tofu Fries, a kiosk catering a
burger and fries are conducting a survey for us to provide quality products and
services that will fit your needs and wants. The purpose of this is to gather data that
we can use as our evidence in our feasibility. Your participation in this survey is
completely, voluntary and all answer gathered here will treated with outmost
confidentially. God bless!

I. Personal Information:

Name (optional): _____________________________________

Sex:
 Male
 Female

Age:
 15 years old and below
 16 years old to 25 years old
 26 years old to 35 years old
 36 years old to 50 years old
 51 years old and above

Status:
 Student
 Employed
 Unemployed

If a student, how much is your daily allowance?

 Php 20 – Php 50
 Php 50 – Php 80
 Php 80 – Php 110
 Php 110 – Php 140
 Php 140 above

If employed, how much is your daily salary?

 Php300 – Php 500
 Php 500 – Php 700
 Php 700 – Php 900
 Php 900 – Php 1100
 Php1100 above
II. Directions: Answer the following questions by putting a checkmark on the space
provided that corresponds to your answer.

1. Where do you usually buy burger and fries?

 Jollibee
 McDonalds
 KFC

2. How often do you eat burger?

 Daily
 Weekly
 Monthly
 Yearly
 Not at All

3. What kind of burger do you often eat?

 Cheese burger
 Chicken burger
 Double ham burger

4. How often do you visit a burger shop?

 Daily
 Weekly
 Monthly
 Yearly
 Not at All

5. Which among the following qualities do you look for in a burger shop?
 Ambiance
 Price
 Wi-Fi Accessibility
 Quality of Burger
 Friendly Crew
 Quick Service
 Others (please specify): ____________

6. How much is your budget for eating burger and other snacks?
 Php 60 – Php 80
 Php 80 – Php 100
 Php 100 – Php 120
 Php 120 – Php 140
 Php 140 above

7. What image would you like the burger shop to have?

  branded, high-class, fine dining style
 unique, themed, corporate
 relaxed and informal

8. What specific range of time do you usually prefer to go to burger shops?

 6:00 am – 10:00 am
 10:00 am – 12:00 nn
 12:00 pm – 2:00 pm
 2:00 pm – 5:00 pm
 5:00 pm – 12:00 mn
 12:00 mn – 6:00 am

9. Are you willing to try our tuna sisig burger and other products?
 Yes, I am going to buy your products
 No, I will not give it a try