8

Chapter 2

MARKETING ASPECT

Marketing is a vital part of a business triumph. It involves the

production and distribution of products and services and is also

concerned with the ethical and social responsibility functions found in

the domestic and global environment. The market is essential to this

study to know if the proposed project is feasible or not.

This aspect deals with the nature of the target market, the

description of the service and the service fee, identification the

competitors price, and the demand-supply analysis. This will also

emphasize the marketing plan which is relevant to the operation of

the business.

To be successful, business that deals with customers on a daily

basis must not only be customer-driven, but customer-obsessed. The

target market should be given first hand priority since income will

generate from them. An apparent apprehension of demand and supply

analysis, organized and precise interpretation of data and

identification of the target market are substantial elements in any

feasibility study.
 9

Name of the Business

The proponents named their proposed business as JAST Dance

and Fitness Studio. The acronym JAST comes from the nicknames of

the researchers, Joseph, Alex, Sab and Trixia.

Figure 1. Business Logo

General Market Information

Market Description

The proposed project is the establishment of dance studio that will

provide affordable rental services and workshops to the respondents

aging 10 years and above. JAST Dance and Fitness Studio will offer

high-quality services and convenience to our customers. The studio

was designed to have a positive and creative atmosphere, well-

 10

ventilated facilities with the combination of excellent working sound

system and fully-furnished sprung wood floor so that every dancer can

master their craft. Other facilities include open lounge space, comfort

rooms, and others. The proponents also exerted extra effort to keep in

mind the value of comfort living so we can definitely assure our

customers the best rehearsal experience.

The studio will be located at Barangay Uno Calamba City. The

proponents choose the said place because it is highly industrialized.

They believe that it will be a great place to start the business.

Demand Analysis

Demand is an economic principle that describes a consumers

desire or willingness to pay a price for a specific goods or services.

The proponents determine demand of its proposed service by

conducting surveys to people who are willing to avail their proposed

project. In this study, the demand is determined by the need for the

service to be marketed to the target market and is used to come up

with a fairly accurate assumption about the project.

Factors Affecting Demand

1. Service Price
Price is the only element in the marketing mix that produces

revenue. (Ac-Ac, 2009. Principles of Marketing). This factor has

 11

a great impact on the demand. They say that setting low prices

increase the demand, in effect; the quality of the service will be

affected. And if it does not meet the customers desire will effect

to revulsion of the service, and greatly affect the demand.

2. Price of Related Services
The demand for dance studio is affected by people who visit

fitness centers and people who enroll in talent workshops.

Additionally, salaries of dance instructors are also necessary.

3. Customers Income
Demand for this service is affected by the income of the

customer. People with higher income are more likely to avail the

said services than those people with lower income especially

those who do not have job like the students. Lower income

earners tend to find cheaper alternative services.

4. Population
The rapid increase in population directly affects the demand

of the said business. The more people there is in a particular

place, the more the demand will definitely increase.

5. Customers Preference
The preferences of the customers directly influence the

demand. These include the changes in trends, habits and

lifestyle.

Survey Results

The population of the study used for the computation of the sample

size was obtained from multiplying the total population of Barangay

 12

Poblacion 2016 to 60% which is the age bracket of respondents from

10-59 years old, then multiplied to the margin of error, 5%

34457( 60 )
n= 2
1+34457 ( .05 )

= 393 total respondents

The following tables were obtained by the proponents through

figures gathered from the survey conducted and were interpreted

based on actual results.

Table 1on the next page indicates that most of the respondents of

this study are aging

15 19 with 227 (57.76%) while aged 55 59 with 3 (0.77%) are the

least respondents.

Table 1. The number of respondents aged 10 years and above

From To Frequency (f) Percentage (%)

10 14 17 4.33
15 19 227 57.76
20 24 100 25.45
25 29 12 3.05
30 34 10 2.54
35 39 10 2.54
40 44 5 1.27
45 49 5 1.27
50 54 4 1.02
55 59 3 0.77
Total 393 100%
 13

Table 2 shows that majority of the respondents aged 10 years and

above were females with a total of 244 (62.09%) and males with 149

(37.91%).

Table 2. The gender of the respondents

Response Frequency (f) Percentage (%)
Male 149 37.91
Female 244 62.09
Total 393 100%

The table below indicates that 301 (76.59%) of the total

respondents were dancing or an aspiring dancer while 92 (23.41%)

were not.

Table 3. The number of respondents who are dancing/aspiring dancer

Response Frequency (f) Percentage (%)
YES 301 76.59
NO 92 23.41
Total 393 100%

Table 4 on the next page shows that most of the respondents

belong in a group with 241 (80.07%), others do not belong to any

group with 46 (15.28%) while 14 out of 301 (4.65%) prefer to dance

with a partner.

Table 4. The group that the respondents belong to

Response Frequency (f) Percentage (%)
Group 241 80.07
Duo 14 4.65
Solo 46 15.28
Total 301 100%
 14

Table 5 implies the types/genres that the respondents usually

dance. And on top of the list is Hip-Hop with 153 (30.60%). Hip-Hop is

popularly known in the Philippines since early 80s and has been a

major genre that is usually dance. Next is jazz or modern dance with

128 (25.60%). The difference between Hip-Hop and Jazz/Modern

dance is that Hip-Hop has a faster tempo; funky and new while

Modern dance is the sharper version of lyrical dance. On the other

side, the least chosen by the respondents is Vogue with 1(0.20%).

Table 5. Types/Genres usually dance by the respondents

Response Frequency (f) Percentage (%)
Hip-Hop 153 30.60
Jazz/Modern Dance 128 25.60
Contemporary 49 9.80
Ballroom 40 8.00
Folkdance 55 11.00
Zumba 53 10.60
Cheer dance 11 2.20
Interpretative 10 2.00
Vogue 1 0.20
Total 500 100%

The table 6 on the next page indicates that the respondents

generally rehearse or practice their house with 127 (32.32%) while

minority is at the street with 38(9.67%).

Table 6. The place where the respondents usually dance

Response Frequency (f) Percentage (%)
House 127 32.32
Street 38 9.67
Open area 95 24.17
Court 88 22.39
School 45 11.45
 15

Total 393 100%

Table 7 suggests that majority of the respondents are willing to

avail the studio rental service offered by the proponents with

261(86.71%) and others prefer not to with 40(13.29).

Table 7. The number of respondents who are willing to avail studio rental service
Response Frequency (f) Percentage (%)
YES 261 86.71
NO 40 13.29
Total 301 100%

Table 8 shows that most of the respondents rehearse or practice

occasionally with 83(27.57%) while others prefer every once a month

with 14 (4.65%)

Table 8. The number of respondents on how often they usually dance

Response Frequency (f) Percentage (%)
Everyday 41 13.62
Once a week 60 19.93
Twice a week 68 22.59
Thrice a week 35 11.63.
Once a month 14 4.65
Occasionally 83 27.57
Total 301 100%

Table 9 implies the number of respondents on how often they

rehearse with occasionally as the highest with 66 (25.29%) and once a

month as the lowest with 9 (3.45%).

 16

Table 9. The number of respondents on how often they rehearse.

Response Frequency (f) Percentage (%)
Everyday 38 14.56
Once a week 58 22.22
Twice a week 56 21.46
Thrice a week 34 13.03
Once a month 9 3.45
Occasionally* 66 25.29
Total 261 100%

*The proponents described occasionally as more seldom than

once a month.

Table 10 implies that majority of the respondents are willing to

undergo dance workshop to develop their dancing skills with 277

(92.03%) while others prefer not to with 24 (7.97%).

Table 10. The number of respondents who are willing to undergo dance workshop to
enhance their dancing skills
Response Frequency (f) Percentage (%)
YES 277 92.03
NO 24 7.97
Total 301 100%

Table 11 shows that most of respondents will undergo Hip-Hop

dance workshop with 143 (30.23%) while others get 7 (1.48%) only.

Table 11. Type of genres that the respondents will engage under dance
workshop (in multiple answers)
Response Frequency (f) Percentage (%)
Hip-Hop 143 30.23
Jazz/Modern Dance 124 26.22
Contemporary 52 10.99
Ballroom 37 7.82
Folkdance 54 11.42
Zumba 56 11.84
Others 7 1.48
 17

Total 473 100%

Table 12 on the next page shows that 147(33.64%) of the

respondents have personal interest in dancing as their purpose while

6(1.37%) as their past time.

Table 12. The respondents purpose in dancing

Response Frequency (f) Percentage (%)
School purposes 94 21.51
Entertainment 86 19.68
Exercise 104 23.80
Personal interest 147 33.64
Past time 6 1.37
Total 437 100%

Present Demand

The proponents obtained the actual demand of dance studio in

Barangay Poblacion, Calamba City by conducting a self-administered

survey within the target area. The table below indicates the tabulated

results gathered.

Table 13. Present demand for dance studio rentals

No. of operating **Annual
Response Frequency (f)
days per year Demand
Everyday 38 289 10,982
Once a week 58 48 2,784
Twice a week 56 24 1,344
Thrice a week 34 12 408
Once a month 9 12 108
*Occasionally 66 6 396
Total 261 391 16,022

*The proponents describe occasionally as more seldom than once

a month.
 18

**Annual demand is obtained by multiplying the frequency to the

no. of operating days per year

Table 14. Present demand for dance workshop

*Respondents who are willing Percentage **Annual
Type/Genre
to undergo dance workshop (%) Demand
Hip-hop 554 30.23 167
Jazz/Modern 554 26.22 145
Folk dance 554 11.42 63
Zumba 277 11.84 ***1,584
Others 277 20.29 56
Total 100% 2,015
*The original respondents who are willing to undergo dance

workshop, which is 277 is multiplied to 2 because the proposed

business assumed to have different set of students for two months

**Annual demand is computed by multiplying the percentage of

each genre to the total annual demand

***Annual demand for zumba is multiplied to total operating days

of 48.

Computations:

Hip-hop = 554 x .3023

= 167

Jazz/Modern = 554 x .2622

= 145

Folk dance = 554 x .1142

= 63

Zumba = 277 x .1184

= 33 x 48 days

= 1584
 19

Others = 277 x .2029

= 57

Projected Demand

The projected demand for dance studio rental is calculated based

on the present demand in the market compared with the growth rate

of population per year which is approximately 3%. The table below

shows the projected demand for dance studio for the next five years.

Table 15. Projected demand for dance studio rental

Year Preceding Years Demand Growth Rate *Projected Demand
2017 16, 022 3% 16, 503
2018 16, 503 3% 16, 998
2019 16, 998 3% 17, 508
2020 17, 508 3% 18, 033
2021 18, 033 3% 18, 574
*Projected demand is obtained by multiplying the previous year

demand to the growth rate (1+0.03).

2017 = 16, 022 x 1.03

= 16, 503

2018 = 16, 503 x 1.03

= 16, 998

2019 = 16, 998 x 1.03

= 17, 508

2020 = 17, 508 x 1.03

 20

= 18, 033

2021 = 18, 033 x 1.03

= 18, 574

Projected demand for dance studio rental

19,000
18,500
18,574
18,000
18,033
17,500
17,508
Projected Demand 17,000 16,998
16,500
16,503
16,000
15,500
15,000
2017 2018 2019 2020 2021
Year

Figure 2. Projected Demand for dance studio rental in the next 5 years

The projected demand for dance workshop is calculated based on

the present demand in the market compared with the growth rate of

population per year which is approximately 3%. The table below

shows the projected demand for dance studio for the next five years.

Table 16. Projected Demand for Dance Workshop

Year Preceding Years Demand Growth rate *Projected Demand

2017 2,015 3% 2,076

2018 2,076 3% 2,139
2019 2,139 3% 2,204
2020 2,204 3% 2,271
2021 2,271 3% 2,340
 21

*Projected demand is obtained by multiplying the preceding years

demand to the growth rate (1.03).

Computations:

2017 = 2,015 x 1.03

= 2,076

2018 = 2,076 x 1.03

= 2,139

2019 = 2,139 x 1.03

= 2,204

2020 = 2,204 x 1.03

= 2,271

2021 = 2,271 x 1.03

= 2,340
 22

Projected demand for dance workshops

2400
2350
2300 2340
2250 2271
2200
2204
2150
Projected Demand
2100 2139
2050 2076
2000
1950
1900
2017 2018 2019 2020 2021

Figure 3. Projected Demand for dance workshop in the next 5 years

Supply Analysis

Supply is the schedule of various quantities of a specific product or

service that will be available to consumers at a given time and place.

Supply can also relate to the choice of consumers regarding price

range. In this study, it pertains to the amount of service that the

proposed business can offer. Factors affecting supply in this study are

the cost of service, related services, skills, and customer: dance

instructor ratio.

Factors affecting supply

1. Cost of service
 23

Season of the year, employee salaries, utilities and other expenses

affect the costs of the services offered.

2. Related service

Competitions always exist in the market. The more business that

offer the same service, the lesser market share will result. Related

service that is offered by competitors could be the basis to determine

how the service will be offered, promoted, advertised and innovated

so that the service business will be more endorsed in the market than

the other existing related services if there is any.

3. Skills

The skills and talents of the dance choreographer and instructors

should be considered as a factor affecting the supply. The quality of

service that will be rendered will depend on the coaching and

apprenticeship of the employee regarding dance tutorials and

workshops.

4. Customer: dance instructor ratio

The capacity of the dance instructor to handle customer and the

recommended ratio to be administered affect the quality of service

they give. The smaller the ratio of customer per instructor, the better
 24

supervision they can provide, otherwise the fewer supervision they

can offer.

Unsatisfied Demand

Unsatisfied demand usually rises when the supply is insufficient to

cover the demand in the market. It is realized by deducting the

demand for the year from the supply of the same year. This study has

no supply because there is no available business offering the same

service. Here in Calamba City, particularly in Barangay Poblacion,

there is no existing business service related to the establishment of a

dance studio.

There are aspiring dancers and those who just wanted to dance out

there that do not have the place where they can enhance their talents.

Currently in Calamba City, there are a few dance studios but treated

as other services offered because they are actually focused on a dance

school business. These dance schools who offer the same service as

this dance studio will offer are located distant from the location

indicated in the general market description. Therefore, there is no

supply and it is equivalent to zero as formulated here in the equation:

Unsatisfied demand for studio rental = Total Demand Total

Supply

= 16, 022 0
 25

= 16, 022

Unsatisfied demand for dance workshop = Total Demand Total

Supply

= 2,015 0

= 2,015

Market Share of JAST Dance and Fitness Studio Rental

Market share is the portion of total sales in relation to the market

it operates within. It can be computed from a companys total sales

revenue in the market divided by the total sales revenue available

from the market.

Total Annual Capacity (dance studio) =

2 ( 2Operating Hours
Minimum Hours )
Total Operating Days

= 2(8/2)*241 1,928
(8/2)*48 192
2,12
0

Total Annual Capacity

100
Market Share = Projected Demand
 26

2,120
= ( 16,022 ) 100
= 13.23%

13%

87%

Market share for dance studio rental

Unsatisfied demand for dance studio
rental

Figure 4. Market share of dance Studio Rental for 2016

Table 17. Market share for dance studio rental for the next five years.
Annual Efficiency
*Market
Year Capacity Rate (ER) AC x ER Projected Demand
share (%)
(AC)
2017 2,120 90% 1,908 16,503 11.56
2018 2,120 92% 1,951 16,998 11.48
2019 2,120 94% 1,993 17,508 11.38
2020 2,120 96% 2,036 18,033 11.29
2021 2,120 98% 2,078 18,574 11.19

* Market share is computed by dividing AC x ER to the projected

demand.
 27

12%

88%

Market share for dance studio rental

Unsatisfied demand for dance studio
rental

Figure 5. Market share for dance studio rental for 2017

11%

89%

Market share for dance studio rental

Unsatisfied demand for dance studio
rental

Figure 6. Market share for dances studio rental for 2018

11%

89%

Market share for dance studio rental

Unsatisfied demand for dance studio
rental

Figure 7. Market share for dance studio rental for 2019

 28

11%

89%

Market share for dance studio rental

Unsatisfied demand for dance studio
rental

Figure 8. Market share for dance studio rental for 2020

11%

89%

Market share for dance studio rental

Unsatisfied demand for dance studio
rental

Figure 9. Market share for dance studio rental for 2021

Total Annual Capacity (workshop) = CC x level x genre x 2 months

= 15 x 2 x 3 x 2

= 180

(zumba) = customer per day x 48 days

 29

= 20 x 48

= 960

= 1,140

Legend: CC Customer per class

Level either beginner or intermediate

Genre either Hip-Hop, Jazz or Modern Dance, or Folkdance

Total Annual Capacity

100
Market Share = Projected Demand

= ( 1,140
2,015 )
100

= 56.58%

43%
57%

Market share for dance workshop

Unsatisfied demand for dance workshop

Figure 10. Market share for dance workshop for 2016

Table 18. Market share for dance workshop for the next five years.
Annual Efficiency Market
Year Capacity Rate (ER) AC x ER Projected Demand share
(AC) (%)
 30

2017 1,140 90% 1,026 2,076 49.42

2018 1,140 92% 1,049 2,139 49.03
2019 1,140 94% 1,072 2,204 48.62
2020 1,140 96% 1,094 2,271 48.19
2021 1,140 98% 1,117 2,340 47.74

51% 49%

Market share for dance workshop

Unsatisfied demand for dance workshop

Figure 11. Market share for dance workshops for 2017

51% 49%

Market share for dance workshop

Unsatisfied demand for dance workshop

Figure 12. Market share for dance workshops for 2018

51% 49%

Market share for dance workshop

Unsatisfied demand for dance workshop

Figure 13. Market share for dance workshops for 2019

 31

52% 48%

Market share for dance workshop

Unsatisfied demand for dance workshop

Figure 14. Market share for dance workshops for 2020

48%
52%

Market share for dance workshop

Unsatisfied demand for dance workshop

Figure 15. Market share for dance workshops for 2021

Competitive Position

Competitive Positioning is about carving out a spot in the

competitive landscape and being known for something and it sets the

service apart from the competitors. (www. marketingmo.com/strategic

planning/competitive-positioning/)
 32

It is said to be in a competitive position when the service has

attained a noticeable percentage share of the market. The proposed

business, which will be the first dance studio to be established here in

Barangay Poblacion, will offer high quality services that would be a

great advantage over the target market. JAST Dance and Fitness

Studio will be positioned in a community with the right demography

that will attract customers upon the first day of operations.

Lastly, our employees will be provided with a good compensation

program and benefits that will motivate them to work at their best all

the time.

Marketing Program

Service

The proposed business aim is to provide Innovative, Trendy, and

Fresh experience to the customers. And in order maintain its quality;

the people behind the future success of the project should be

screened thoroughly. Equipment to be used should be in a good

working condition. Facilities are well-maintained and well-ventilated

for the comfort of the customer.

Price

Pricing plays a vital part in marketing the services offered. The

price for the rental service will be P160.00 per hour with 2-hour
 33

minimum practice. On the other hand, offered price for zumba under a

choreographer will be on a per session basis while workshops will be

P200.00 per session or with a total of P2400.00 for the whole

enrolment (P200.00 x 12 sessions) for both beginner and intermediate

level exclusive of recitals.

Place

The place of the proposed business will be established along

Barangay Uno, Calamba City. The secondary target markets are the

remaining barangays in Calamba. These remaining barangays are

applicable only if the proponents decided to expand the business.

Promotion

In promoting JAST Dance and Fitness Studio, the social media will

be used as the main platform. A Facebook page will be created

containing the list of services that will be offered and will also be used

to communicate with the customers, the location of the studio, and the

features of the said business by means of uploading photos to the said

page. Tarpaulin will be posted at areas located around Barangay

Poblacion. Furthermore, business cards will also be available for other

customers. Additionally, the proposed business will be having its

ZumBarangay: Free Zumba Class for a week to promote the

proposed business to each residents of Barangay Poblacion. JAST

Dance Contest will also be conducted to encourage dancers of

 34

different genres to showcase their talents. Winners will be given cash

prize and discounts for every dance studio rental they will avail.

Table 19. Marketing cost and expenses

Particulars Quantity Unit cost in Peso Amount in Peso
Tarpaulin (6 x 8 ft.) 3 720 2, 160
ZumBarangay (Free Zumba
1,750
Class for 1 week)
JAST Dance Contest 4,500
Total 8,410