In Compliance in BA 7A Kugi Hub Market Study
In Compliance in BA 7A Kugi Hub Market Study
In Compliance in BA 7A Kugi Hub Market Study
KUGI HUB
MARKET STUDY
Submitted by:
ELYSIA PEREZ
MERALUN A L. LISONDRA
EDNALYN ALONZO
1:30-3:00 TTH
Submitted to:
b. Location
Demographic
Education levels: The location of Kugi Hub has nearby universities. This will allow greater
opportunity to attract sophisticated college students to avail the service offered.
Major Economic Activity: Commercial and Service Centers
Location: It is adjacent to KFC fast-food chain, along the parking lot of UC, across the Veterans’
bank and SSS with an address of 17-C Barba Building, Jones Avenue, Cebu City.
Map of nearby establishments along Jones Avenue.
Coffee shops and tea shops in the downtown area became a normal venue for students
to study but there is an increasing demand of a place with a sole purpose for studying, aside from
libraries and home, and cozy places to stay as more and more students avail these services as
observed in the university at night.
b. Economic
The economy of the area around the University is stable and strong as more and more
shops and stores open to serve a huge market. Three big stores -- E-mall, Metro Gaisano, and
Gaisano South, are located near the University offering services and products to the community.
c. Cultural
The university students have a culture to study in a cozy environment often outside their
dormitories/apartments. It is observable at night, especially during exam weeks, that students
flock coffee and tea shops to spend the night studying or doing projects.
F. SURVEY RESULTS
QUESTIONS YES NO
2. Are you satisfied with the environment your living with? 38% 62%
3. Is it easy to focused on your study with the environment your living with? 12% 88%
5. Have you tried studying in a coffee shops or study centers? 84% 16%
7. Do you take more than 5 hours staying in a coffee shop or study centers? 70% 30%
G. DEMAND
Based on the survey results through questionnaires with a total of 50 respondents,
about 58% of the overall respondents of the target market prefer in study centers and 42%
prefer coffee shops. With a 1,200 estimated total population of college students who are
renting in downtown area. With the use of chain method in determining the demand by
multiplying 1,200 (the estimated total population of renting students around downtown
area) by 58% of students who would prefer to visit in a study centers and multiply the product
by 30% an estimated percentage of students who will be catered; the result would be about
209 renting students will be our potential costumers in availing our service with a money
budgeted for study centers. In the current market, there is an increase in the demand from
the students who are renting for a quiet and accessible area to study when the school libraries
are closed.
Historical Data
H. PROJECTED DEMAND
Arithmetic Geometric Curve
I. PRICE STUDY
In determining our rate per hour, we have agreed to use the market-based or penetrative
pricing. This is a pricing strategy that revolves around pricing a product or service low enough so
that it attracts customers and captures market share. The main reason we would want to employ
this strategy is to boost the initial presence of the business early on, and set it up in a comfortable
position to capitalize on later sales at the higher price. Additionally, penetration pricing also helps
consumers make the decision to switch between brands because of the lower price. This can be
used to promote brand loyalty effectively. According to the data we collected from the survey
questionnaires, most students spend about 35 pesos per hour. We have interviewed a few of our
competitors regarding their rate per hour. Most study centers we’ve asked have a price range of
35-45 pesos. Which makes it an advantage to us to be able to charge of 30 pesos per hour. Some
students may find it still costly and hereon we add a variety of pricing like bundles 575 pesos for
a whole day or 199 for an overnight stay with free cup of coffee.
J. MARKETING STRATEGIES
a. Service
Kugi Hub is expected to provide offerings that are in line with the vision and mission of
the company. Foods and beverages would also be served. Free one cup of any hot beverages
every 12 midnight with 1 hour stay.
b. Place
The study hub is expected to be located within the vicinity of a university which will
make it more accessible for students even late at night.
c. Price
The pricing strategy that will be employed would be going rate pricing (i.e. Prices are to
be set in comparison with competitors’ products, either by charging the same, more, or less than
the major competitions). As a company in the introduction stage, it would be positioned as a
business that would offer more services, aiming to either satisfy or delight the customers. At the
same time, the customers would avail such services in a competitive price (i.e. same, more, or
less than the major competitions). The Hub will offer a relatively lower price compared to
computer shops and cafes. It will also be more comfortable compared to other places, which
makes it more conducive for learning and having fun.
d. Promotion
The group will use the combination of the promotional strategies. But since the service
business aims to position itself as capable in competing with other study hubs, there would be
more focus on advertising, and publicities and public relations. In terms of creating awareness,
the group should use cheap yet creative advertising strategies. The group could take advantage
of social networking sites and other materials like posters and flyers. To further promote the
image of the service business, the group should use publicities and public relations.
e. Physical Evidence
Chairs and tables should be present. To further add to the “stiff -yet-cozy” atmosphere,
the room must be air-conditioned. The whole place should have wireless fidelity (Wi-Fi)
connection. Charging station will be present as well. Foods and beverages would also be served.
f. Process Management
The target audience is expected to be informed regarding the service to be provided by
the Kugi Hub via promotional materials or word-of-mouth. Upon creating awareness, customers
could avail various services and bundle packages. Upon entrance, customers would be provided
with stubs. These would serve as proof in claiming certain packages.
g. People
Less people would be needed in this kind of business. One to two persons could be
assigned as the one asking the packages to be availed by the customers. One to two persons
could be assigned for serving the food and beverages.