marketing study
TRANSCRIPT
A FEASIBILITY STUDY ON PINOY-FLAVORED PIZZA
MARKETING
STUDY
CHAPTER 2
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MARKETING STUDY
Conducting market feasibility and competitive intelligence marketing
research early in the development cycle can provide a "reality check" on your
idea as well as help define product development to ensure its appeal for your
customers. This type of market research is used to determine:
“How much of a demand is there for the product or service you are
considering?”
Marketing research is defined as “a systematic gathering, recording, and
analyzing of data problems relating to the financial, production, and marketing of
goods and services to help decision-making and control”. Any market study
seeks to bring more orderliness for better guidance in solving problems in
financial, production and marketing.
GENERAL OBJECTIVE
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The general objective of the Filipizza market study is to obtain useful
information necessary for the launching of our new and innovated “Filipizza” in a
variety of markets, pleasing the diverse taste of all Filipinos.
SPECIFIC OBJECTIVES
To ensure that the business is in touch with the market
To find out new markets for the product
To increase sales and reduce costs in its operations
To measure the sale trends and sales potential
To determine the factors influencing the purchasing behavior of the market
To better adapt the product to the ongoing demand for pizza so that price
will be based on demand
To ensure the effectiveness of the promotion strategy used and determine
other possible strategies
To guarantee that the business will benefit not only the customers and the
company, but the whole society
Market Study Methodology
SCOPE AND LIMITATIONS
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This study about the feasibility of Filipizza business that will be located at
Barangay Kaypian in San Jose Del Monte covers the following:
Respondents should belong to the age bracket of 13 – 50 years old,
male and female, either a student, employed or unemployed and are all
residents of Barangay Kaypian, San Jose Del Monte.
SAMPLING DESIGN
The researchers used a Simple Random Sampling Method in gathering
information from the target market. In this technique, each member of the
population has an equal chance of being selected as subject. The entire process
of sampling is done in a single step with each subject selected independently of
the other members of the population.
SAMPLE SIZE DETERMINATION
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In determining our sample size for the proposed project, a Slovin’s
Formula is being used.
Slovin’s Formula: Nn = ____________
1 + Ne2
Where: n= sample size
N= the total population
e= margin of error (.05)
QUESTIONNAIRE FORMULATION
In order to have an access on the pertinent information and gather
important data about customer’s taste and preferences when it comes to pizza,
the researchers agreed to use Survey Questionnaires. There are two survey
questionnaires made, one is for the determining the target market population
while the other is to determine the preferences of the target market wi\hen it
comes to pizzas. In the second questionnaire, the group provided ten (10)
questions, simple and direct to the point. Questions are all itemized consisting of
both open-ended and close-ended mode of responses. By these questions, the
group will be able to determine the demand for the product.
RETRIEVAL OF QUESTIONNAIRES
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The researchers conducted a survey by distributing questionnaires and
survey forms in different areas around our location comprising the target market
of the proposed business. Retrieval of the following questionnaires did not pose a
problem to the researchers because questionnaires were immediately collected
after the respondents were able to finish answering.
SURVEY ANALYSIS DESIGN
A Descriptive Method of Research is being used by the group in gathering,
classifying and analyzing data. As the term suggests, it describes the
characteristics, preferences and the different nature of consumers and
prospective buyers. It is concerned with collection, organization and construction
of data in a very understandable manner.
TALLY OF QUESTIONNAIRES
The questions are answerable through choosing their answer on the
multiple choices.
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Gender # of Respondents Percentage (%)
Male 183 46.21
Female 213 53.79
TOTAL 396 100
Table 2: CUSTOMERS PROFILE
Exhibit 1: CUSTOMERS' PROFILE
Among the respondents who interestedly answered the questionnaires
given by the proponents, 183 of them are Male and 213 are Female. This gives a
46% and a 54% for the customer profile respectively.
Age Group Population Distribution
1 - 12 9 2.27
13 - 19 225 56.82
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20 - 35 107 27.02
36 - 50 33 8.33
51 up 22 5.56
TOTAL 396 100
Table 3: RESPONDENTS’ AGES
Exhibit 2: RESPONDENTS' AGES
Respondents for the given questionnaire are classified into several age
brackets. Nine (9) of them equivalent to 2.27% are 1-12 yrs. Old, 225 which is
equivalent to 56.82% ranges from 13-19 yrs. Old, 20-35 yrs. old ranges from 20-
35 which represents 27.02% of the total number of respondents, 8.33% ranges
from 36-50 yrs. old and has total number of 33 respondents, 5.56% of them are
51 and above and has total number of 22 respondents for a total of 100%.
1.) Do you eat pizza?
# of Respondents Percentage (%)
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Yes 393 99.24
No 3 .76
Total 396 100
Table 4: PERCENTAGE EATING AND NOT EATING PIZZA (Question #1 Statistics)
Exhibit 3: PERCENTAGE EATING AND NOT EATING PIZZA (Question #1 Exhibit)
Most of the respondents have eaten pizza. There are 393 which is 99% of
the total 396 respondents and only 3 respondents which is only 1% have not yet
eaten pizza/doesn’t consider eating pizza at all.
2.) How often do you eat pizza?
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# of Respondents Percentage (%)
Daily 4 1.01
Weekly 37 9.34
Occasionally 317 80.05
Others 38 9.60
Total 396 100
Table 5: FREQUENCY OF EATING PIZZA (Question #2 Statistics)
Exhibit 4: FREQUENCY OF EATING PIZZA (Question #2 Exhibit)
On the question “how often does the respondent buy pizza?” 1.01% or 4
of the respondents buy pizza daily, on a weekly basis, 9.34% of them or 37
people buy pizza, 9.60% are not sure how often they include pizza on their menu
list this is equivalent to 38 people, and an outstanding 80.05% said that they only
buy pizza along with occasions this is equivalent to 317 respondents.
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3.) Have you tried pizza topped with Filipino dishes?
# of Respondents Percentage (%)
Yes 172 43.43
No 224 56.57
Total 396 100
Table 6: PERCENTAGE WHO HAVE AND HAVEN'T TRIED EATING FILIPINO PIZZA (Question #3 Statistics)
Exhibit 5: PERCENTAGE WHO HAVE AND HAVEN'T TRIED EATING FILIPINO PIZZA (Question #3 Exhibit)
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According to the survey, 56.57% of the respondents have not yet tried
eating pizza with Filipino toppings this is equivalent to 224 people and 43.43%
have tried eating this is equivalent to 172 people.
4.) (For those who answered Yes above) Among the flavors you have tried,
what is your MOST favorite?
# of Respondents Percentage (%)
Sisig 59 34.30
Adobo 36 20.93
Lechon 47 27.33
Laing 10 5.81
Others 20 11.63
Total 172 100
Table 7: PREFERENCE AMONG EXISTING FILIPINO PIZZA FLAVORS (Question #4 Statistics)
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Exhibit 6: PREFERENCE AMONG EXISTING FILIPINO PIZZA FLAVORS (Question #4 Exhibit)
Among the respondents who tried Filipino topped pizzas, 59 of them or
34.30% have tried sisig, 20.93% or 36 of them have tried adobo, 47 or 27.33%
have tried lechon, only 10% have tried laing topped to pizza and 20 respondents
answered they already have tried other flavors not mentioned.
5.) What factor do you MOST consider in choosing a pizza to eat?
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# of Respondents Percentage (%)
Flavor 247 62.37
Cost 66 16.67
Size ( Thick and Thin)
62 15.66
Others 21 5.30
Total 396 100
Table 8: MOST CONSIDERED FACTOR IN CHOOSING PIZZA TO EAT (Question #5 Statistics)
Exhibit 7: MOST CONSIDERED FACTOR IN CHOOSING PIZZA TO EAT (Question #5 Exhibit)
As the survey suggests, flavor is the most considered factor of the
respondents in choosing a pizza to eat (247 respondents or 62.37%). Next on the
list is the cost which is preferred by the 66 respondents or the 16.67%. Size or
the thickness or thinness of a pizza comprises about 15.66% or 62 respondents.
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The rest (5.30% or 21 respondents) answered they prefer other factors like the
aura and sanitation of the place and the people they are with.
6.) Are you willing to patronize our store if we’re going to introduce new
delicious Filipino dishes as toppings to freshly-baked pizza?
# of Respondents Percentage
Yes 388 97.98
No 8 2.02
Total 396 100
Table 9: WILLINGNESS TO TRY NEW FILIPINO PIZZA FLAVORS (Question #6 Statistics)
Exhibit 8: WILLINGNESS TO TRY NEW FILIPINO PIZZA FLAVORS (Question #6 Exhibit)
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The survey shows that 97.98% of the respondents (388 respondents) are
willing to try new Filipino pizza flavors if we will be introducing some on the
market. While, about 2.02% or 8 respondents answered “No” because they do
not eat prefer pizzas topped with Filipino flavors or they are already satisfied with
the existing Italian pizza flavors.
7.) What Filipino dish will you want us to use as new toppings to your
pizza?
# of Respondents Percentage (%)
Adobong Pusit 70 18.04
Caldereta 116 29.90
Bicol Express 140 36.08
Others 62 15.98
Total 388 100
Table 10: PREFERENCE FOR PIZZA TOPPINGS (Question #7 Statistics)
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Exhibit 9: PREFERENCE FOR PIZZA TOPPINGS (Question #7 Exhibit)
According to the survey, Bicol Express is the most preferred toppings for
pizza by the respondents totaling to about 36.08% or 140 respondents. Next,
Caldereta is preferred by the 29.90% or 116 respondents. Adobong Pusit is the
third on the list which covers about 18.04% or 70 respondents. The rest
answered other toppings which comprises about 15.98% or 62 respondents.
8.) How much are you willing to pay for a slice?
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# of Respondents Percentage (%)
20-30php 264 68.04
31-40php 79 20.36
41php and above 45 11.60
Total 388 100
Table 11: BUDGET FOR A SLICE OF PIZZA (Question #8 Statitics)
Exhibit 10: BUDGET FOR A SLICE OF PIZZA (Question #8 Exhibit)
As shown on the table, 68.04% of the respondents or 264 respondents
want a slice of Filipino pizza to cost about 20-30 pesos. Then, about 20.36% or
79 respondents want to price it for about 31-40 pesos per slice. The remaining
11.60% or 45 respondents want a slice of pizza to cost as much as 41 pesos
above.
9.) Have you eaten malunggay pandesal?
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# of Respondents Percentage (%)
Yes 292 73.74
No 104 26.26
Total 396 100
Table 12: PERCENTAGE WHO HAVE AND HAVEN'T TRIED MALUNGGAY PANDESAL (Question #8 Statistics)
Exhibit 11: PERCENTAGE WHO HAVE AND HAVEN'T TRIED MALUNGGAY PANDESAL (Question #9 Exhibit)
According to the survey, 292 respondents or 73.74% have already tried
eating malunggay pandesal while 104 respondents or 26.26% have not yet tried
to eat one. This question is necessary to know about the respondents’
acceptance if we are going to flavor our dough with healthy malunggay.
10.) (For those who answered Yes above) Why do you like it?
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# of Respondents Percentage (%)
Good Taste 77 26.37
Good for the health 168 57.53
Fond of eating pandesal
32 10.96
Others 15 5.14
Total 292 100
Table 13: REASONS FOR EATING MALUNGGAY PANDESAL (Question #10 Statistics)
Exhibit 12: REASONS FOR EATING MALUNGGAY PANDESAL (Question #10 Exhibit)
The table shows that about 57.53% or 168 respondents like malunggay
pandesal because it is good for the health. Then, about 26.37% or 77
respondents like it because it has good taste. Thirty-two (32) respondents or
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10.96% like it because they are fond of eating pandesal. The remaining 5.14% or
15 respondents have other reasons like for change and others.
SUMMARY OF MARKET SURVEY ANALYSIS RESULTS
As for demand to expect by the proponents coming from the target
market, the respondents who represent the whole population happily answered
that for sure they will be trying the product offered by the store basically because
of its very original concept being one that we Filipinos can be so proud of. The
survey shows that almost 100% of the total number of respondents which is 396,
answered positively. Undeniably the potential of the business proposal exceeds
what the proponents only think of because of the feedback they are getting from
the target market. Even without starting the business itself, people in the area
started asking questions and dug their curiosity on the product alone. This
inhibits the capacity of the business to grow more than what the proponents think
and run after the pioneering businesses on the same industry in just a short
period of time.
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Market Research
DESCRIPTION OF THE TARGET MARKET
Filipizza’s target market are the local residents of Barangay Kaypian in
San Jose Del Monte, Bulacan. Filipizza serves to people who wanted to get a
traditional twist to the usual European pizza introduced by foreign countries. Our
customers also vary in age ranging from 13 to 50 years old. Also, since our
location is near the newly-built Starmall means that most of our customers will be
the travelers who visit the mall and the local people. Major customers are
expected to be the students and the teaching and non-teaching school staffs
from nearby schools and universities. Many students arrange pizza treat parties
in pizza stores during their birthdays and other celebrations. At the same time,
they may prefer ordering pizza during lunch breaks and snack times instead of
eating heavy rice meals. Secondary customers are expected to be the usual
mall-goers either employed or unemployed, with a taste for Filipino pizza since
there is only a single pizza competitor located inside the mall.
DETERMINING THE TARGET POPULATION SIZE
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Total Population of the Target Location
The proposed project’s target location is in Barangay Kaypian in the City
of San Jose Del Monte, Bulacan. In 2007, it was considered the third most
populated barangay with a total population of 26,308. It has an annual population
growth rate of 5%. In addition to the total residents of the barangay, our project
also covers the schools located around the place.
Table 14: TOTAL POPULATION OF BARANGAY KAYPIAN FROM 2007-2012
YEAR RESIDENTS STUDENTS(From the nearby
schools)
TOTAL POPULATION
2007 26,308 ------- -------
2008 27,623 2,603 30,226
2009 29,004 2,901 31,905
2010 30,454 3,233 33,687
2011 31,977 3,603 35,580
2012 33,576 4,015 37,591
*Source: National Statistics Office
*Residents: 5% growth rate annually (from NSO)*Students: 11.44% growth rate annually (based on interviews conducted)
Using Slovin’s Formula:
Given that the total population for 2012 is 37,591…
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37,591n = _______________
1 + (37,591)(.05)2
37,591= _______________
1 + (37,591)(.0025)
n = 395.79 or 396 respondents
Age Survey Analysis
Since there is no statistical data recorded in NSO or in the barangay hall
about the age segmentation of the residents of Barangay Kaypian, our group
decided to conduct a survey to determine our target market population from age
13 to 50. Using the 396 respondents, we come up with our total target market
population of 364 or 92% of the total population of Barangay Kaypian.
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Exhibit 13: POPULATION AGE SEGMENTATION
Interpretation:
Results show that majority of the respondents are 13 to 19 years old
(57%). Others are 20 to 35 years old (27%), 36 to 50 years old (8%), 51 years
old and above (6%) and 1 to 12 years old (2%). Totaling the percentages of the
people ages 13-50 will give us a target market population percentage of 92%.
AGE GROUP RESPONDENTS PERCENTAGE
1-12 9 2%
13-19 225 57%
20-35 107 27%
36-50 33 8%
51 and above 22 6%
TOTAL 396 100%
Table 15: POPULATION AGE SEGMENTATION
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DEMAND ANALYSIS
For every business, it is very essential to know the demand in order to
answer customers’ needs and wants. For Filipizza, knowing our demand will
help us to determine the trend for our products. Analyzing the demand thoroughly
will give the projection of the total number of quantity of each product that we are
going to produce daily, weekly, monthly and annually.
Total Demand Growth Pattern
Using the 92% target market population percentage (from 13 to 50 years
old) multiplied by the total population from year 2008 to 2012 will give us the
annual past demand growth of Barangay Kaypian.
Table 16: TOTAL DEMAND GROWTH PATTERN
YEARTOTAL
POPULATION
TARGET POPULATION PERCENTAGE
DEMAND GROWTH PATTERN
2008 30,226 92% 27,808
2009 31,905 92% 29,353
2010 33,687 92% 30,992
2011 35,580 92% 32,734
2012 37,591 92% 34,584
* Demand Growth Pattern = Total Population x 92% target population Historical Demand
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… Using Arithmetic Straight Line Method:
Yc = A + (Yi – 1)
Where: A = average increase
Yi - 1 = value of the last year
Yc = initial value (first year)
Yn = final value (last year)
N = number of years covered
A = constant increase in demand
Solution:
Given that Yn = 34,584, Yc = 27,808 and N = 5 years…
A = 34,584 – 27,808______________
5 – 1
= 6,776
_____________
4
A = 1,694
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Yn – YcN - 1
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In order to get the annual past demands (Yc) from year 2008 – 2012, the
Arithmetic Straight Line Method suggests that the total past demand for the first
year will be subtracted to the total demand of the last year ( Yn - Yc) and divide it
with the number of years ( Yn - Yc / N-1). Then, the answer (A) will be added to
the value of the last year (Yi – 1) in order to get the annual past demands.
YEAR Y A Yi - 1 Yc
2008 30,226 ------ ------ ------
2009 31,905 1,694 30,226 31,920
2010 33,687 1,694 31,920 33,614
2011 35,580 1,694 33,614 35,308
2012 37,591 1,694 35,308 37,002
Table 17: HISTORICAL DEMAND
Projected Demand
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YEAR A Yi - 1 Yc
2013 1,694 37,591 39,285
2014 1,694 39,285 40,979
2015 1,694 40,979 42,673
2016 1,694 42,673 44,367
2017 1,694 44,367 46,061
Table 18: PROJECTED DEMAND
Exhibit 14: PROJECTED DEMAND (FROM 2013 – 2017)
SUPPLY ANALYSIS
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Historical Supply
In our location, there are already two (2) pizza stores which were
established before Filipizza. However, Chansel pizza started its operations only
last May while Patricia’s pizza last June of the present year, 2012. That is the
reason why our historical supply covers only for eight (8) months for Chansel
Pizza and seven (7) for Patricia’s pizza.
Table 19: HISTORICAL SUPPLY
COMPETITOR
PIZZA SUPPLY 2012(per tray)
For a Day For a Month
For the year 2012
Chansel Pizza 80 2,400 19,200
Patricia’s Pizza 70 2,100 14,700
Historical Supply for the year 2012 33,900
* Based on the interviews conducted on both competitors.
* Chansel Pizza (from May – December)* Patricia’s Pizza (from June – December)
Projected Supply
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In order to determine the projected supply of pizza for the year 2013, an
increase of 3% will be added to the historical supply for the year 2012. Thus,
multiplying 33,900 by 3% and adding the product to 33,900 will give us 34,917.
Applying the same percentage to the following years will give us the projected
pizza supply for five (5) consecutive years.
Table 20: PROJECTED SUPPLY
YEAR 2013 2014 2015 2016 2017
PROJECTED SUPPLY
34,917 35,965 37,044 38,155 39,300
* With 3% projected increase in supply annually (based on interviews conducted)
Exhibit 15: PROJECTED SUPPLY (FROM 2013 -2017)DEMAND-SUPPLY GAP ANALYSIS
Historical Demand-Supply Gap Analysis
YEAR HISTORICAL HISTORICAL DEMAND- PERCENTAGE
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DEMAND SUPPLY SUPPLY GAP
UNSATISFIED
2008 ------ ------ ------ ------
2009 31,920 ------ 31,920 100%
2010 33,614 ------ 33,614 100%
2011 35,308 ------ 35,308 100%
2012 37,002 33,900 3,102 8.38%
Table 21: HISTORICAL DEMAND-SUPPLY GAP ANALYSIS
* Percentage Unsatisfied = Demand-Supply Gap / Historical Demand
Exhibit 16: HISTORICAL DEMAND-SUPPLY GAP ANALYSIS
Projected Demand-Supply Gap Analysis
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Knowing the projected demand-supply gap is necessary in determining
Filipizza’s market share. The gap or the unsatisfied market is obtained by
subtracting the projected supply from the projected demand. It also shows the
percentage of unsatisfied market which is equal to the demand-supply gap
divided by historical demand.
YEARPROJECTED
DEMANDPROJECTED
SUPPLY
DEMAND AND
SUPPLY GAP
PERCENTAGE UNSATISFIED
2013 39,285 34,917 4,368 11.12%
2014 40,979 35,965 5,014 12.24%
2015 42,673 37,044 5,629 13.19%
2016 44,367 38,155 6,212 14%
2017 46,061 39,300 6,761 14.68%
Table 22: PROJECTED DEMAND-SUPPLY GAP ANALYSIS
Interpretation:
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As the table suggests, the projected gap between and supply increases as
the time goes by. Similarly, the percentage of unsatisfied needs of the target
market increases as well. This gap between demand and supply determines the
extent to which Filipizza has to satisfy.
Exhibit 17: PROJECTED DEMAND-SUPPLY GAP ANALYSIS
STATUS OF COMPETITION
“Who are Filipizza’s competitors?”
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In the proposed project’s target area, there are two existing primary
competitors selling pizzas and they only opened a few months ago since the
location was new for establishing business entities. Residents in the location are
still not familiar or aware with the competitor’s operations even with its existence.
Most likely the proponents’ idea can still cope up for the months the competitor
has taken and get its lead. At the same time, we also considered secondary
competitors selling substitute products in our analysis of competition in the area.
Table 23: COMPETITION ANALYSIS
COMPETITOR OPERATING HOURSESTIMATED
DAILY CUSTOMERS
Primary Competitors
Chansel Pizza 10 am – 9 pm 40
Patricia’s Pizza 10 am – 9 pm 30
Secondary Competitors
Denise Pares and Grill 10 am – 9 pm 50
Sisig Hooray 10 am – 9 pm 70
Goto Topps 10 am – 9 pm 40
Chicksilog 10 am – 9 pm 60
Hapag Kainan 10 am – 9 pm 30
* Based on interviews conducted on competitors. Competitor’s Profile
A. 1st Primary Competitor’s Profile: Chansel’s Pizza
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Chansel Pizza is a Pizza store strated operating last May 1, 2012, just a
few months after the mall started operating. Pizza, like Beef-mushroom, Ham
and Cheese and Hawaiian Classic and the like are being offered. It is located at
the foodcourt where many competitors for fast-served food exist. Only through
the students of the universities nearby Chansel Pizza has been known. There is
no promotional activities are done for the publicity and increase of sales of the
store. They offer Pizzas in very affordable prices, it will only range from 130 –
200 pesos and is being liked by the students. Unfortunately, they do not satisfy
customers crave for Pizza since the size doesn’t even meet what is standard. It
its promotional activities using World Wide Web/Internet for their branches in
Manila but unfortunately there was inconsistency with the said activity. They
weren’t able to respond to the people’s feedback about their services and offered
product.
B. 2nd Primary Competitor’s Profile: Patricia’s Pizza
Patricia’s Pizza is only a food stall mainly targeting students which are
already used of eating rice for their meals. Commonly their branches are
established at institutions which are not so familiar causing their failure when it
comes to publicity. They offer classical pizza flavors like Ham and Cheese,
Cheesy Cheese, Beef with mushroom and Hawaiian Classic. Compared to the
first competitor, Patricia’s Pizza is bigger in size but it doesn’t achieve the right
taste for pizza. It survives in the industry because of its affordability and
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packaging convenience. The prices only range from 115.00 to 230 pesos
depending on the size and the flavor.
STRENGTHS
It offers classic Italian pizza by
which Filipinos are so used to.
Located inside the newly opened
Starmall San Jose Del Monte
Airconditioned
Affordable
WEAKNESSES
No extraordinary product is being
offered
Since it is located inside the mall,
not everyone sees it especially
because it is located at the farthest
part of the establishment covered
by smaller stalls.
No promotional activities being
conducted
Packaging is not as attractive as it
could be
Crews are not so accommodating
Slow usually delayed service
No gimmicks, no promos
Less quality pizza when it comes
to size and taste
STRENGTHS
It offers classic Italian pizza by
which Filipinos are so used to.
Located inside the newly opened
Starmall San Jose Del Monte
Affordable
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WEAKNESSES
No extraordinary product is being
offered
Since it is located inside the mall,
not everyone sees it especially
because it is located in the middle
of 2 elevators on the ground floor.
No promotional activities being
conducted
No place for eating
No gimmicks, no promos
Less quality pizza when it comes
to taste
Table 24: COMPETITORS PROFILE
MARKET SHARE ANALYSIS
Historical Market Share Analysis of Primary Competitors (Year 2012)
HISTORICAL MARKET SHARE ANALYSIS
COMPETITOR CUSTOMERS Raw Market
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Market Share
Share in Percentage
Daily Weekly(x7)
Monthly(x30)
Yearly(x365)
PRIMARY COMPETITORS
Chansel Pizza 40 280 1,200 14,600 0.5714 57.14%
Patricia’s Pizza 30 210 900 10,950 0.4286 42.86%
TOTAL 70 490 2,100 25,550 1 100%
Table 25: HISTORICAL MARKET SHARE ANALYSIS OF PRIMARY COMPETITORS (YEAR 2012)
Exhibit 18: HISTORICAL MARKET SHARE OF PRIMARY COMPETITORS
Historical Market Share Analysis of Both Primary and Secondary Competitors (Year 2012)
HISTORICAL MARKET SHARE ANALYSIS
COMPETITOR CUSTOMERS Raw Market
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Market Share
Share in Percentage
Daily Weekly(x7)
Monthly(x30)
Yearly(x365)
PRIMARY COMPETITORS
Chansel Pizza 40 280 1,200 14,600 0.125 12.50%
Patricia’s Pizza 30 210 900 10,950 0.094 9.30%
Subtotal 70 490 2,100 25,550 0.219 21.90%
SECONDARY COMPETITORS
Denise Pares and Grill
50 350 1,500 18,250 0.156 15.60%
Sisig Hooray 70 490 2,100 25,550 0.218 21.87%
Goto Topps 40 280 1,200 14,600 0.125 12.50%
Chicksilog 60 420 1,800 21,900 0.187 18.75%
Hapag Kainan 30 210 900 10,950 0.093 9.30%
Subtotal 250 1,750 7,500 91,250 0.7813 78.13%
TOTAL 320 2,240 9,600 116,800 1 100%
Table 26: HISTORICAL MARKET SHARE ANALYSIS OF BOTH PRIMARY AND SECONDARY COMPETITORS (YEAR 2012)
* Based on interviews conducted on both primary and secondary competitors. * Raw Market Share = Number of Customers / Total Number of Customers
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Exhibit 19: HISTORICAL MARKET SHARE OF BOTH PRIMARY AND SECONDARY COMPETITORS (YEAR 2012)
Projected Market Share of Filipizza (Year 2013)
Table 37: PROJECTED MARKET SHARE OF Filipizza (YEAR 2013)
PROJECTED MARKET SHARE ANALYSIS
PIZZA STORE
CUSTOMERS Raw Market Share
Market Share in
PercentageDaily Weekly(x7)
Monthly(x30)
Yearly(x365)
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A FEASIBILITY STUDY ON PINOY-FLAVORED PIZZA
Chansel Pizza
42 294 1,260 15,330 0.3889 38.89%
Patricia’s Pizza
32 224 960 11,680 0.2963 29.63%
Filipizza(New
Entrant)34 238 1,020 12,410 0.3148 31.48%
TOTAL 108 756 3,240 39,420 1 100%
* Filipizza’s capacity to supply annually: 30 persons (based on computations on supply capacity of Filipizza)* Competitors has an annual increase of 5% on supply capacity based on increase in population.* 108 daily customers is based on projected demand in 2013 / 365 days
Exhibit 20: PROJECTED MARKET SHARE OF FILIPIZZA (BY THE YEAR 2013) Projected Market Share of Filipizza for the Next Five Years
YEARPROJECTED
GROWTHMARKET SHARE
2013 5% 31.48%
2014 5% 33.05%
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A FEASIBILITY STUDY ON PINOY-FLAVORED PIZZA
2015 5% 34.70%
2016 5% 36.43%
2017 5% 38.25%
Table 28: PROJECTED MARKET SHARE OF FILIPIZZA FOR THE NEXT FIVE (5) CONSECUTIVE YEARS
* Projected Market Share Increase Annually = 5% (based on annual population growth rate)
Since the proponents of the business were optimistic that the entry of the
business to the market will have an immediate impact to its customers, an
increase in the number of its customers is expected and to comply with this, the
proponents decided to start its market share at 31.48% and increase it for about
5% annually based on the total population growth rate. This will be because of
the different promotional tactics the business will provide and the quality of our
products itself.
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A FEASIBILITY STUDY ON PINOY-FLAVORED PIZZA
* With 5% projected increase annually based on population growth rate
Exhibit 21: PROJECTED MARKET SHARE OF FILIPIZZA (2013-2017)
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A FEASIBILITY STUDY ON PINOY-FLAVORED PIZZA
SWOT ANALYSIS
TH
RE
AT
S
To
be
know
n by
co
mpe
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mita
tions
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her
prod
uct
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co
st
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re c
om
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ors
arou
nd
the
area
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od
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rom
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n
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nes
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OP
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ing
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New
in t
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such
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om
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for
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that
pi
zza
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as
any
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od
ST
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alth
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pric
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)
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all,
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and
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term
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OM
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PE
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Tabl
e 29
: Fili
piz
za S
WO
T AN
ALYS
IS
A FEASIBILITY STUDY ON PINOY-FLAVORED PIZZA
INDUSTRY ANALYSIS
Exhibit 22: INDUSTRY ANALYSIS
MARKETING MIX STRATEGY
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Primary Competitors:Chansel PizzaPatricia’s Pizza
Secondary Competitors:Denise Pares and GrillSisig HoorayGoto ToppsChicksilogHapag Kainan
New Entrant:
Filipizza
Substitutes:Rice and ulam mealsBreads
Customers:Residents of Barangay KaypianStudents, Teaching and Non-Teaching Staffs from Nearby SchoolsMall visitors
Suppliers:ESC MarketingClear Water Refilling StationF-R De Leon EnterprisesMB Enterprises
A FEASIBILITY STUDY ON PINOY-FLAVORED PIZZA
Advertising includes those activities by which visual or oral messages are
addressed to the public for the purpose of informing them and influencing them
either to buy merchandise or services or to act or to be influenced favorably
toward ideas, institutions or persons featured. Promotion is communication by
marketers that make the potential buyers informed, persuaded and reminded of a
product to influence an opinion or elicit response.
Product Strategies
There are lots of pizzerias everywhere nowadays and they all have the
traditional flavors like Hawaiian and pepperoni pizza topped with different cheese
toppings. With this little variety of flavors, the customers tend to get used with the
taste of the pizzas. The proponents took this opportunity to make the traditional
flavored pizza into different panorama.
The group topped the pizza with different dishes the Filipinos are fond of.
And they named it Filipizza, the house of Filipino pizza. There they combine the
luscious dishes in the Philippines with the European’s pizza. Adobong pusit, Bicol
express, Bopis, Pinoy Beef Caldereta and Sisig are the five flavors we are
introducing in the market. Plus the dough we will be serving will be flavored with
malunggay, making sure that the customers will get the right amount of nutrition
they need especially for the dieters.
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A FEASIBILITY STUDY ON PINOY-FLAVORED PIZZA
Filipizza guarantees good taste of food and healthy amount of nutrients.
All were made for everyone.
Figure 5: FILIPIZZA MENU LIST
Place Strategies
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A FEASIBILITY STUDY ON PINOY-FLAVORED PIZZA
Filipizza will be located just along Quirino Highway right across the
Northridge Subdivision. The place is only few steps away from the newly-opened
Starmall San Jose Del Monte. Its location is one of the prime residential and
retail destinations in the area.
Many people visit the location because of the different institutions in the
area. Strategically located nearby schools and universities, the place is
frequently visited by our targeted students. At the same time, Starmall San Jose
Del Monte sits just southwest of our store. Families who frequently go there most
especially during Saturdays and Sundays has the mindset of enjoying or
recreating and is looking for easier ways to satisfy their prioritized need in the
fastest and simplest way possible.
Moreover, there is a proposed plan that a northern MRT-7 line to link
North Avenue-EDSA to San Jose Del Monte City is to be on rise on the place by
the year 2014-2015. With this, we can expect greater sales by the near future.
Pricing Strategies
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A FEASIBILITY STUDY ON PINOY-FLAVORED PIZZA
We used the Cost Plus Strategy in order to set the price of our products.
The computation would be:
Total Production Cost
Add: 15% Mark-up Price
Subtotal
Add: 12% Value Added Tax
GROSS SELLING PRICE
Promotion Strategies
These days technology had been available everywhere. A lot of people
had been more actively participating in social media websites in order to get in
touch with their love ones in long distance. With the use of these websites it will
be easy to disseminate information and a lot of business owners use this trend to
introduce and promote their product in every walks of life. These sites will provide
greater opportunity for Filipizza to show what this venture can offer.
Aside from this, huge posters and tarpaulin will be a good help in
promoting the product. These tarpaulin and posters will be glued on the side of
the wall of the store. Nameplates will always be pinned on employee’s collar. The
fliers will be given away to the people passing by the streets especially to the
students near the vicinity of the store.
a. Poster
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Exhibit 1:
A FEASIBILITY STUDY ON PINOY-FLAVORED PIZZA
Posters will be placed in our Filipizza store. Both of them will surely catch
the attention of our customers because of the information provided and the
aesthetic appeal. The size of our poster will be 22“ x 28“. Two (2) posters will be
produced for which will be good for about six (6) months.
Figure 6: COMPANY POSTER
b. Nameplate
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Figure 7: COMPANY NAMEPLATE
Figure 8: COMPANY FLYER (Front and Back)
A FEASIBILITY STUDY ON PINOY-FLAVORED PIZZA
Filipizza will provide nameplates for each employee of our store. Chosen
colors are pleasing to the eye and will surely
boost the interest of our customers. The size
of our nameplate will be 8 cm x 2 cm.
c. Company Flyer
The company will also provide flyers. These flyers will be distributed
once a week every Saturday for four (4) times in a month. Flyers are good form
of product promotion because they can convey a wide range of possible buyers
for it can be brought to other places. The store will produce about 200 flyers in a
month (50 pcs every Saturday will be distributed). Flyers will be given in the first
three (3) months of our operation until we get our loyal customers. The size of
our flyers will be 4.5 inches x 5.5 inches.
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A FEASIBILITY STUDY ON PINOY-FLAVORED PIZZA
d. Tarpaulin
A tarpaulin will also be provided by the company two weeks before its
opening day. This will inform the neighborhood of the business that will soon be
opening in the area. Also, this would create awareness and a feeling of
excitement to our target market.
The tarpaulin size will be 4 sq. ft. x 8 sq. ft.
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A FEASIBILITY STUDY ON PINOY-FLAVORED PIZZA
Figure 9: TARPAULIN
TAKE-OUT SERVICE
Offering take-out service will be promoted for the proposed project. With
the use of a bilao wrapped with foil, Filipizza would reach the customers not
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A FEASIBILITY STUDY ON PINOY-FLAVORED PIZZA
involved in the target geographic area of the business. By this kind of marketing
program, there is a big possibility of increasing Filipizza’s market demand.
OPENING - DAY BLITZ
On the opening day of Filipizza, we will relive the traditional Filipino
culture by playing many original Filipino songs from artists like Ryan Cayabyab,
Regine Velasquez, Ogie Alcasid and many more. Through this, we will be able to
attract customers and walk-in patrons. At the same time, Filipizza will also offer
promos like free taste and buy 1 take 1 for the first three (3) customers of our
store. Plus, at exactly 8:00 in the evening (an hour be fore the closing of our
store), we will be giving a 10% discount for all the customers who will be ordering
our products.
CHANNEL OF DISTRIBUTION
Channel of Distribution, sometimes called the marketing channel is a set
of interdependent organization that eases the transfer of ownership as product
move from producer to business users.
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A FEASIBILITY STUDY ON PINOY-FLAVORED PIZZA
In order to distribute our products, Filipizza will use a direct channel of
distribution wherein the products will be given directly from the producer to the
consumers.
CUSTOMERS
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Exhibit 23: CHANNEL OF DISTRIBUTION