Feasibility Study Chapter 2

Republic of the Philippines
Department of Education
Region 02 (Cagayan Valley)
SCHOOLS DIVISION OFFICE OF ISABELA
Alicia East District
300500 – ALICIA NATIONAL HIGH SCHOOL
Paddad, Alicia, Isabela 3306
CHAPTER II
MARKETING ASPECT
The Marketing Aspect is said to be the lifeblood of all feasibility studies. It

makes a big impact on the study because it serves as the basis for the proponents to
have a clear picture whether to pursue the business or not. It will determine the factors
to be considered in establishing and coming up with the business as well as the
financial basis through the projected demand.
Objectives of the study

The marketing aspect aims to meet the following objectives:
 To analyze the demand and supply of the market place.

 To determine the market share of the business.
 To know the market share of the business.
Total Population of Target Market

Antonino 3,469
Calaocan 2,815
Magsaysay 788
San Antonio 1,776
San Fernando 1,392
TOTAL: 10,240
1
Advertisement and Promotion
Small and medium-sized businesses really need to understand the importance

of promotional and marketing strategies. Promotional strategies and marketing go
hand in hand. Promotion is a key element in putting across the benefits of your
product or service to the customers. Well-designed marketing and promotional
strategies ensure long-term success, bring in more customers and ensure profitability
for businesses.
Since the business is new to the industry customers will be given discounts
and other promos in its 1st week of operation. The proponents also used social
networking sites such as Facebook, Twitter, and Instagram in promoting the product
in a wider range of customers to avoid spending too much with the promotional tools.
As the promotional strategy, the proponents will make sure that the name of
the business and the product itself will seize the attention of their target market. In this
way the company will ensure long-term success, bring in more customers and ensure
profitability for businesses.
Price
The pricing of each bread design is based from the survey questionnaire
gathered by the researchers. The researchers floated survey questionnaires with an
option of prices. Then the costing of products immediately adjusted based from its
sole so that it would compensate the pricing from the survey questionnaire.
Each bread cost from 15.00 to 20.00 pesos based on the research result that
we conduct, but it will adjust based on the economic growth of the country or the
price of the minor and major ingredients of the Buenos Días Panadería and for the
transportation and etc. that will affect the price of our product
The prices of the Buenos Días Panadería products will be dependent on how
the market price of the main ingredients is Any change of the price of the Buenos
Días Panadería products will be taken into consideration to the factor that measures
the consumers' capability to purchase the product.
2
Supply Analysis
SUPPLY RESOURCES ALTERNATIVES
Raw Materials Martinez Agri & Bakery Evergood Bakery

(Ingredients of Bread) Supply Supply
(Cagayan Valley, Philippines) (Lino C. Barrera Street, Santiago,
-Dealer of 1st class & 3rd class
3311)
flour, cassava & cake flour, &
other bakery ingredients in New Evergood Bakery Supply
Cagayan.
& Merchandising
The Leidi Chef
(Pilar Cauayan City, Philippines) (Alicia- San Mateo Rd, Alicia,
Luzon Trading
(Santiago, 3311 Isabela)
Isabela, Philippines)
Fruits & Vegetables Dan Irene Fruits & Anihan Fruits and
Vegetables Dealer Vegetables Trading
(Bambang, 3702 Nueva Vizcaya)
(Abaya Rd, Santiago, 3311
Isabela) Multifresh
JR-Weng Fruits and Bayombong Nueva
Vegetable Dealer vizcaya
(Bayombong, Nueva Vizcaya)
(National Highway, Bambang
City, 3702)
Equipments, Appliances, and Baylon Bakery Shop N Bake

Kitchen Ware Equipment Supply &
(Lino Barrera St, Centro East,
Fabrication
(Victory norte Nearly infront of Santiago City, Isabela.)
pnb in, Pan-Philippine Hwy,
Santiago, 3311 Isabela)
Evergood Bakery
PipeWhisk Baking Supply
Supplies (Lino C. Barrera Street, Santiago,
(Burgos St, Centro 04,
3311)
Tuguegarao, 3500 Cagayan)
Sample Size of Each Barangay
3
To accurately obtain a more acceptable figure result, sample size will be

computed for each Barangay.
The proponents used the Slovin’s formula, the computation is as follows:
N
n=
1+ N e 2
10 , 240
¿ 2
1+10 , 240(0.1)
10 ,240
¿
103.4
¿ 99
Where: n= no of sizes
N= Total population of the 5 Barangays
e= Error of margin
Total Sample Size Per Barangay
ANTONINO
3 , 469
n= x 99 %
10 , 240
SAN ANTONIO
n=34
1 , 776
n= x 99 %
CALAOCAN 10 , 240
n=17
2 , 815
n= x 99 %
10 , 240 SAN FERNANDO
n=27 1, 392
n= x 99 %
MAGSAYSAY 10 , 240
n=13
788
n= x 99 %
10 , 240
n=8
4
Interpretation and Analysis of Data
To fully understand and analyze the problem, the proponents conducted a

survey to collect pertinent data. The survey was conducted via google form and
messenger, where we asked fifty (50) people to answer a number of questions in the
form of questionnaire. Relevant questions were prepared to obtain the needed
information. The results of the survey are as follows:
Graph 1. The response of the target market if they are eating vagetable.
YES 43
NO 7
Do you eat vegetable?
No
14%
Yes
No
Yes
86%
Based on the survey conducted, the pie graph shows that 86% of the target
market are eating vegetable while 14% are Not this result implies that there is a big
fraction that Buenos Días Panadería will be visible to the target consumers who have
craved for vegetables.
Graph 2. How often the respondents eat vegetable.
5
Everyday 31
Occasionally 13
Often 4
Very Often 2
How do you often eat vegetable?
8% 4%
Everyday
Occasionally
26%
Often
62%
Very Often
According to the pie graph the proponents found out that 62% of the target
market are eating vegetable everyday, then 26% are occasionally, 8% people often eat
vegetable, and lastly 4% eat vegetable very often. The results imply that Buenos Días
Panadería has the chance of being viable to the target market due to the respondents’
response to how often they eat vegetable.
Graph 3. The response of the target market if they are eating Bread.
YES 44
6
NO 6
Do you like to eat bread?
12%
Yes
No
88%
The results shows that 88% of the target market are eating bread while 12%
are Not. The result implies that Buenos Días Panadería product has a big chance that
to be patronized by the consumers based on the survey.
Graph 4. How often the respondents eat bread.

Everyday 31
7
Occasionally 13
Often 3
Very Often 3
How often do you eat bread?
Very Often
Often
6% 6% Everyday
Occasionally Occasionally
26% Everyday Often
62% Very Often
According to the pie graph the proponents found out that 62% of the target
market are eating bread everyday, then 26% are occasionally, 8% people often eat
bread, and lastly 4% eat bread very often. The results imply that Buenos Días
Panadería has the chance of being viable to the target market due to the respondents’
response to how often they eat vegetable.
Graph 5. The number of target customer who says either yes or no in patronizing
the business if the business will be established.
Very Satisfying 38
Satisfying 8 8
Average 4
How do you find Buenos Días Panadería as an

alternative for our conventional breads?
Average
Satisfying 8%
Very Satisfying
16% Satisfying
Average
Very Satisfying
76%
76% percent respondents find Buenos Días Panadería Very satisfying and 16%
said that they are satisfied and only 8% says that its average. By these results the
proponents is confident that Buenos Días Panadería products will be patronized by the
consumers.
Graph 6. The target market’s preference of price if they are going to avail the
product offered
9
How much are you willing to pay for the Buenos

Días Panadería?
21-25 pesos
10%
15-20 pesos
21-25 pesos
15-20 pesos
90%
The data shows that 45 respondents said that they are willing to pay Php 15-20
for Buenos Días Panadería while only 5 for 21-25 pesos. These results gave the
respondents the idea on what will be the pricing for Buenos Días Panadería products.
TABLE 1
List of Competitors
Name of Competitors Daily Sales
10
Pandezab 300 pieces of Malunggay Pandesal

Enteng Cheesedesal 400 pieces of Cheese Pandesal
Pinoy Pandesal 300 pieces of Pandesal
TABLE 2
Total Demand
Target Market Potential Number of Market Potential
Customer
5 Baranggay near the 10,240 1,536
location of the business
Market Potential= Potential No. of Customers x 15%

=10,240 x 15%
=1,536
TABLE 3
Demand and Supply
Target Market Total Demand Total Supply

 5 Barangays near
the location of the 1,536 1,100
business
TABLE 4
MARKET SHARE
Demand and Supply Gap Target Market Share
436 28.38%
Demand and Supply Gap= Total Demand- Total Supply

= 1, 536- 1,100
11
= 436
TMS= Target Market Share

DSG= Demand and Supply Gap
TD= Total Demand
DSG
TMS= X 100
TD
436
TMS= X 100
1, 5 36
TMS=28.38 %
TABLE 5
Projected Demand and Supply
12
FORMULA:
TOTAL DEMAND (2021) = T.D x 10% + T.D

= 1, 536 x 10% + 1, 536
=1,690
Year Total Demand Total Supply Demand and
Supply Gap
2021 1,690 1,210 480
2022 1,859 1,331 528
2023 2,045 1,464 581
2024 2,250 1,610 640
2025 2,475 1,771 709
2026 2,723 1,948 775
TOTAL SUPPLY (2021) = T.S x 10% + T.S
=1,100 x 10% + 1,100
=1,210
TOTAL DEMAND AND SUPPLY GAP= T.D - T.S

=1, 690 -1210
=1, 480
TABLE 6
PROJECTED SALES
Competitors Rate Rate Unit sales per day Unit Sales Unit Sales
per month per year
13
Pan de zab 2 300 600 18,000 216,000

Malunggay Pandesal
Enteng cheesedesal 2 400 800 24,000 288,000
Cheese Pandesal
Pinoy Pandesal 2 400 800 24,000 288,000
Pandesal
Total 1,100 2,200 6,600 792,000
FORMULA:
Rate x Unit Sales per day x Unit sales per month (30) x Unit sales per year (12)
14
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Republic of the Philippines

The Marketing Aspect is said to be the lifeblood of all feasibility studies. It

Objectives of the study

 To analyze the demand and supply of the market place.

Total Population of Target Market

Advertisement and Promotion

Small and medium-sized businesses really need to understand the importance

Raw Materials Martinez Agri & Bakery Evergood Bakery

Equipments, Appliances, and Baylon Bakery Shop N Bake

Sample Size of Each Barangay

To accurately obtain a more acceptable figure result, sample size will be

Total Sample Size Per Barangay

Interpretation and Analysis of Data

To fully understand and analyze the problem, the proponents conducted a

Do you eat vegetable?

How do you often eat vegetable?

Do you like to eat bread?

Graph 4. How often the respondents eat bread.

How often do you eat bread?

How do you find Buenos Días Panadería as an

How much are you willing to pay for the Buenos

Name of Competitors Daily Sales

Pandezab 300 pieces of Malunggay Pandesal

Market Potential= Potential No. of Customers x 15%

Target Market Total Demand Total Supply

Demand and Supply Gap= Total Demand- Total Supply

TMS= Target Market Share

TOTAL DEMAND (2021) = T.D x 10% + T.D

TOTAL DEMAND AND SUPPLY GAP= T.D - T.S

Pan de zab 2 300 600 18,000 216,000

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