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A FEASIBILITY STUDY ON PINOYFLAVORED PIZZA

MARKETING STUDY

MARKETING STUDY

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CHAPTER 2 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.

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GENERAL OBJECTIVE 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

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Market Study Methodology

SCOPE AND LIMITATIONS

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.

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SAMPLE SIZE DETERMINATION

In determining our sample size for the proposed project, a Slovins Formula is being used. Slovins Formula: n= N ____________ 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 customers 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
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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

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.

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TALLY OF QUESTIONNAIRES The questions are answerable through choosing their answer on the multiple choices.

Gender Male Female TOTAL

# of Respondents 183 213 396

Percentage (%) 46.21 53.79 100

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.
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Age Group 1 - 12 13 - 19 20 - 35 36 - 50 51 up TOTAL

Population 9 225 107 33 22 396

Distribution 2.27 56.82 27.02 8.33 5.56 100

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 2035 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%.
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1.) Do you eat pizza? # of Respondents Yes No Total 393 3 396 Percentage (%) 99.24 .76 100

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/doesnt consider eating pizza at all.

2.) How often do you eat pizza?

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# of Respondents Daily Weekly Occasionally Others Total 4 37 317 38 396

Percentage (%) 1.01 9.34 80.05 9.60 100

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 Yes No Total 172 224 396

Percentage (%) 43.43 56.57 100

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)

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.
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4.) (For those who answered Yes above) Among the flavors you have tried, what is your MOST favorite? # of Respondents Sisig Adobo Lechon Laing Others Total 59 36 47 10 20 172 Percentage (%) 34.30 20.93 27.33 5.81 11.63 100

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? # of Respondents Flavor 247 Percentage (%) 62.37
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Cost Size ( Thick and Thin) Others Total

66 62 21 396

16.67 15.66 5.30 100

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. 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.

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6.) Are you willing to patronize our store if were going to introduce new delicious Filipino dishes as toppings to freshly-baked pizza? # of Respondents Yes No Total 388 8 396 Percentage 97.98 2.02 100

Table 9: WILLINGNESS TO TRY NEW FILIPINO PIZZA FLAVORS (Question #6 Statistics)

Exhibit 8: WILLINGNESS TO TRY NEW FILIPINO PIZZA FLAVORS (Question #6 Exhibit) 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.
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7.) What Filipino dish will you want us to use as new toppings to your pizza? # of Respondents Adobong Pusit Caldereta Bicol Express Others Total 70 116 140 62 388 Percentage (%) 18.04 29.90 36.08 15.98 100

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? # of Respondents 20-30php 31-40php 41php and above 264 79 45 Percentage (%) 68.04 20.36 11.60
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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?

# of Respondents Yes No Total 292 104 396

Percentage (%) 73.74 26.26 100

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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? # of Respondents Good Taste Good for the health Fond of eating pandesal Others Total 77 168 32 15 292 Percentage (%) 26.37 57.53 10.96 5.14 100
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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 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
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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.

Market Research

DESCRIPTION OF THE TARGET MARKET

Filipizzas target market are the local residents of Barangay Kaypian in San Jose Del Monte, Bulacan. Filipizza serves to people who wanted to get a
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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

Total Population of the Target Location

The proposed projects target location is in Barangay Kaypian in the City of San Jose Del Monte, Bulacan. In 2007, it was considered the third most
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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 ------30,226 31,905 33,687 35,580 37,591

2007 2008 2009 2010 2011 2012


*

26,308 27,623 29,004 30,454 31,977 33,576

------2,603 2,901 3,233 3,603 4,015

Source: National Statistics Office

*Residents: 5% growth rate annually (from NSO) *Students: 11.44% growth rate annually (based on interviews conducted)

Using Slovins Formula: Given that the total population for 2012 is 37,591 37,591 _______________
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1 + (37,591)(.05)2 37,591 _______________ 1 + (37,591)(.0025)

= 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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AGE GROUP 1-12 13-19 20-35 36-50 51 and above TOTAL

RESPONDENTS 9 225 107 33 22 396

PERCENTAGE 2% 57% 27% 8% 6% 100%

Table 15: POPULATION AGE SEGMENTATION

Exhibit 13: POPULATION AGE SEGMENTATION Interpretation:


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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%. 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 TOTAL POPULATION 30,226 TARGET POPULATION PERCENTAGE 92% DEMAND GROWTH PATTERN 27,808
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YEAR 2008

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2009 2010 2011 2012


*

31,905 33,687 35,580 37,591

92% 92% 92% 92%

29,353 30,992 32,734 34,584

Demand Growth Pattern = Total Population x 92% target population

Historical Demand Using Arithmetic Straight Line Method: Yc = A + (Yi 1)


Yn Yc A N-1

Where: Yi - 1 Yc Yn N A = value of the last year = initial value (first year) = final value (last year) = number of years covered = constant increase in demand

= average increase

Solution: Given that Yn = 34,584, Yc = 27,808 and N = 5 years A = 34,584 27,808 ______________ 51 = 6,776
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_____________ 4 A = 1,694

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 2008 2009 2010 2011 2012

Y 30,226 31,905 33,687 35,580 37,591

A -----1,694 1,694 1,694 1,694

Yi - 1 -----30,226 31,920 33,614 35,308

Yc -----31,920 33,614 35,308 37,002

Table 17: HISTORICAL DEMAND

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Projected Demand

YEAR 2013 2014 2015 2016 2017

A 1,694 1,694 1,694 1,694 1,694

Yi - 1 37,591 39,285 40,979 42,673 44,367

Yc 39,285 40,979 42,673 44,367 46,061

Table 18: PROJECTED DEMAND

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Exhibit 14: PROJECTED DEMAND (FROM 2013 2017) SUPPLY ANALYSIS

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 Patricias 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 Patricias pizza.
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Table 19: HISTORICAL SUPPLY PIZZA SUPPLY 2012


(per tray)

COMPETITOR

For a Day

For a Month 2,400 2,100

For the year 2012 19,200 14,700 33,900

Chansel Pizza Patricias Pizza

80 70

Historical Supply for the year 2012


*

Based on the interviews conducted on both competitors.

* Chansel Pizza (from May December) * Patricias Pizza (from June December)

Projected Supply

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.
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Table 20: PROJECTED SUPPLY YEAR PROJECTED SUPPLY 2013 34,917 2014 35,965 2015 37,044 2016 38,155 2017 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 SUPPLY -----31,920 -----------

DEMANDSUPPLY GAP -----31,920

PERCENTAGE UNSATISFIED -----100%


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2008 2009

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2010 2011 2012

33,614 35,308 37,002

----------33,900

33,614 35,308 3,102

100% 100% 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

Knowing the projected demand-supply gap is necessary in determining Filipizzas market share. The gap or the unsatisfied market is obtained by subtracting the projected supply from the projected demand. It also shows the

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percentage of unsatisfied market which is equal to the demand-supply gap divided by historical demand.

YEAR

PROJECTE D DEMAND 39,285 40,979 42,673 44,367 46,061

PROJECTE D SUPPLY 34,917 35,965 37,044 38,155 39,300

DEMAND AND SUPPLY GAP 4,368 5,014 5,629 6,212 6,761

PERCENTAGE UNSATISFIED 11.12% 12.24% 13.19% 14% 14.68%

2013 2014 2015 2016 2017

Table 22: PROJECTED DEMAND-SUPPLY GAP ANALYSIS

Interpretation: 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.
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Exhibit 17: PROJECTED DEMAND-SUPPLY GAP ANALYSIS

STATUS OF COMPETITION

Who are Filipizzas competitors? In the proposed projects 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 competitors operations even with its existence. Most likely the proponents idea can still cope up for the months the competitor
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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 ESTIMATED DAILY CUSTOMERS

COMPETITOR

OPERATING HOURS Primary Competitors

Chansel Pizza Patricias Pizza

10 am 9 pm 10 am 9 pm Secondary Competitors

40 30

Denise Pares and Grill Sisig Hooray Goto Topps Chicksilog Hapag Kainan

10 am 9 pm 10 am 9 pm 10 am 9 pm 10 am 9 pm 10 am 9 pm

50 70 40 60 30

* Based on interviews conducted on competitors.

Competitors Profile

A. 1st Primary Competitors Profile: Chansels Pizza

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
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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 doesnt 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 werent able to respond to the peoples feedback about their services and offered product.

B. 2nd Primary Competitors Profile: Patricias Pizza

Patricias 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, Patricias Pizza is bigger in size but it doesnt achieve the right taste for pizza. It survives in the industry because of its affordability and packaging convenience. The prices only range from 115.00 to 230 pesos depending on the size and the flavor.

It offers classic Italian pizza by


which Filipinos are so used to.

STRENGTHS

Located inside the newly opened


Starmall San Jose Del Monte

Airconditioned
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Affordable No extraordinary product is being


offered

WEAKNESSES

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 It offers classic Italian pizza by which Filipinos are so used to. Located inside the newly opened Starmall San Jose Del Monte Affordable

STRENGTHS

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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

WEAKNESSES

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)


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HISTORICAL MARKET SHARE ANALYSIS CUSTOMERS COMPETITOR Daily Weekly Monthly


(x7) (x30)

Yearly
(x365)

Raw Market Share 0.5714 0.4286 1

Market Share in Percentage 57.14% 42.86% 100%

PRIMARY COMPETITORS Chansel Pizza Patricias Pizza TOTAL 40 30 70 280 210 490 1,200 900 2,100 14,600 10,950 25,550

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)
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HISTORICAL MARKET SHARE ANALYSIS CUSTOMERS COMPETITOR Daily Weekly Monthly


(x7) (x30)

Yearly
(x365)

Raw Market Share

Market Share in Percentage

PRIMARY COMPETITORS Chansel Pizza Patricias Pizza Subtotal 40 30 70 280 210 490 1,200 900 2,100 14,600 10,950 25,550 0.125 0.094 0.219 12.50% 9.30% 21.90%

SECONDARY COMPETITORS Denise Pares and Grill Sisig Hooray Goto Topps Chicksilog Hapag Kainan Subtotal TOTAL 50 70 40 60 30 250 320 350 490 280 420 210 1,750 2,240 1,500 2,100 1,200 1,800 900 7,500 9,600 18,250 25,550 14,600 21,900 10,950 91,250 116,800 0.156 0.218 0.125 0.187 0.093 0.7813 1 15.60% 21.87% 12.50% 18.75% 9.30% 78.13% 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 Daily Weekly Monthly
(x7)

(x30)

Yearly
(x365)

Raw Market Share

Market Share in Percentage


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Chansel Pizza Patricias Pizza Filipizza (New Entrant) TOTAL

42 32

294 224

1,260 960

15,330 11,680

0.3889 0.2963

38.89% 29.63%

34 108

238 756

1,020 3,240

12,410 39,420

0.3148 1

31.48% 100%

* Filipizzas 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

YEAR 2013 2014

PROJECTED GROWTH 5% 5%

MARKET SHARE 31.48% 33.05%


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2015 2016 2017

5% 5% 5%

34.70% 36.43% 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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* With 5% projected increase annually based on population growth rate

Exhibit 21: PROJECTED MARKET SHARE OF FILIPIZZA (2013-2017)

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STRENGTHS
New in the market Shift to consumer trendAppealing

WEAKNESSES

OPPORTUNITIES

THREATS
To be known by competitors Limitations

ironmental friendly

price (Affordable)

Fluctuation of cost of raw materials especially major ingredients such as flour, sugar and meat.

Very competitive price

Higher production cost

A FEASIBILITY STUDY ON PINOYFLAVORED PIZZA

d and subdivisions

Other competitors Very acceptablePleasing New in the market Food establishments competitors around the area More

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nd of eating pizza People perceives that pizza is the same as any other kind of food

MARKETING STUDY Limited budget for promotion

rs around the area

Cost-effective direct market

Effectiveness of the promotion

In market trend

Awareness of customers

A FEASIBILITY STUDY ON PINOYFLAVORED PIZZA

Table 29: Filipizza SWOT ANALYSIS

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INDUSTRY ANALYSIS Primary Competitors: Chansel Pizza Patricias Pizza Secondary Competitors: Denise Pares and Grill Sisig Hooray Goto Topps Chicksilog Hapag Kainan

Suppliers: ESC Marketing Clear Water Refilling Station F-R De Leon Enterprises MB Enterprises

New Entrant: Filipizza

Customers: Residents of Barangay Kaypian Students, Teaching and NonTeaching Staffs from Nearby Schools Mall visitors

Substitutes: Rice and ulam MARKETING STUDY meals Breads

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Exhibit 22: INDUSTRY ANALYSIS

MARKETING MIX STRATEGY

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
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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 Europeans 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. Filipizza guarantees good taste of food and healthy amount of nutrients. All were made for everyone. Figure 5: FILIPIZZA MENU LIST

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Place Strategies 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.
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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 We used the Cost Plus Strategy in order to set the price of our products.

Exhibit 1:

The computation would be: Total Production Cost Add: 15% Mark-up Price Subtotal Add: 12% Value Added Tax GROSS SELLING PRICE
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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 employees 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 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.

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Figure 6: COMPANY POSTER

b. Nameplate 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.
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NAMEPLATE

A FEASIBILITY STUDY ON PINOYFLAVORED PIZZA

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.

Figure 8: COMPANY FLYER (Front and Back)

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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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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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involved in the target geographic area of the business. By this kind of marketing program, there is a big possibility of increasing Filipizzas 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

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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. 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
Exhibit 23: CHANNEL OF DISTRIBUTION

MARKETING STUDY

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