CHAPTER I

BACKGROUND OF THE STUDY

INTRODUCTION

An entertainment center as defined by freedictionary.com, is a walled unit

containing sound and television systems, while a hub defined by the McMillian

dictionary is the most important place where a particular activity takes place. With these

definitions combined, it makes up an entertainment hub. A place that offers

entertainment for people seeking for it. Over the years, with the idea and the natural

craving of humans for new things, with technology and its wonders, the simple television

set evolved into a multimedia system which can be used in many possible ways.

Despite the wide range of sub-types of hubs, they share similar goals. As with

any business, cost is a concern. Maximizing profits and minimizing costs is the ultimate

goal. This desired outcome influences the construction and design of each store as well

as the price of goods. The goal of every business primarily revolve around the

customer. The business’ nature can somehow be compared to café. Coffee shops

would not be successful without meeting user needs and subsequently establishing a

customer base. Satisfaction surveys found that customers place more emphasis on

having a good experience rather than enjoying a good cup of coffee. As a result,

“experience selling” emerged as a priority in creating cafés. Many patrons spend

considerable amounts of time in the establishment during their visit. As a result, comfort

is key. Because customers have a range of individual preferences, it is essential to

provide a neutral public space, which satisfies a number of needs. Designers must
account for the fact that some customers hope to gather in groups while others desire

personal space. Regardless, customers expect a certain level of privacy. Therefore,

another goal of cafés is to create a sense of both personal space and privacy.

This is why the proponents thought of something that would combine some of the

characteristics of a café and different innovations of entertainment into a single hub.

Aside from enjoying a cup of coffee alone at a café, going to the mall just to watch a

single movie or roam around just to pass the time, the proponents thought that why not

combine these things in a place having a homey atmosphere. ActivEscape is where

entertainment hubs will have a different meaning other than loud music, alcohol and

partying. ActivEscape seeks to give multimedia entertainment in a room. ActivEscape

would be a combination of fun and relaxation, where the whole group can enjoy

multimedia entertainment experience with modern television sets inside the designated

rooms. Rooms are innovated and designed into a Capsule type, multipurpose room that

would provide the customers peace, privacy and fun for the time being, having the

opportunity of using spare time for entertainment and relaxation.

 FBA ANALYSIS:
FEATURES
- Multi- Purpose capsule
rooms for rent.
- Wi-Fi ready amenities
intended for multimedia
entertainment
- Hour-based package rates
to be budget wise.
- Entertainment-system
equipped rooms for
multipurpose uses.
- Comfortable ambiance to
provide a fun and relaxing
environment for every age.
BENEFITS ADVANTAGES
- Accessible
- Young adults
location for nearby
especially students
campuses which
will have a place to
is the basis of
stay during vacant
potential market
hours instead of
customers.
loitering somewhere
else.
- Affordable
packages that
- They can sit, relax
suits the market’s
and enjoy
budget.
multimedia activities
in a cozy and
- There will be a
secured place.
Facebook page for
booking and
- Questions on where
online processes.
to go during long
vacant hours will
now be answered.
- Food and beverage will be - Other social media

available from food stalls accounts are to be

who would be renting created for

inside the facility. promotion and

advertisement,

- Rooms will be available for also to facilitate

a maximum of 10 persons. informing people.

Area of the Study

The proponents took several measures thus coming up with Tanauan City as the

area of the study. The business would be put up around Pres. Laurel highway, Tanauan

City, Batangas. The proponents chose Tanauan City because of the close proximity

between schools and college campuses which is the target market of the study. Instead

of walking around the mall tiringly, the customers may opt to book a place where they

can enjoy and relax at the same time.

Statement of the Problem

The main problem of the business is how to form an entertainment hub that will

be appealing to the customers and earn at least a modest income for the company.

Establishing a new idea for a business is challenging because there is no existing

business alike since the idea is new and also, there are several aspects that should be

considered and analyzed in order to determine the future possible outcome of

establishing the business.

Marketing Aspect

For the marketing aspect, the study should be able to determine the strengths

and weaknesses to put up, the potential customers, state the specific services the

business would render, the potential competitors, the kind of promotion materials or

techniques to be used, the cost of each services render and the status of supply and
demand for the products/services. The factors stated would help the proponents discuss

and solve the problem related to the marketing aspect of the study.

Marketing problems for the business is critical as it defines where, when and how

will the business be known to the market. For entertainment hubs, it is a challenge to

market this kind of business since it’s new to the ears of people, definitely will start from

scratch. The main challenge is how the business can enlighten the customers about

what the business is really about. According to Frank Sininsky (2015), way too many

facilities opening up or expanding these days without the owners/investors conducting

a thorough feasibility study that looks at all of the crucial factors. These include

measuring the available slice of the existing market, the earning and spending power of

potential customers, the range of competition in the area and much, much more. Any

time this first critical step is skipped, the chances of success are about the same as

rolling the dice in a crap game. Without a detailed feasibility study you’re simply fooling

yourself. In my experience, most of the Family Entertainment Centers that fail do so

because they didn’t establish the proper revenue vs. expenses ratios that form the base

of their operation. When you drill down into who is patronizing locations, many Family

Entertainment Centers are being supported by a very low number of individual

customers in a particular market. That’s why an accurate feasibility study is so crucial,

so that you have a realistic grasp of your target audience and you can invest

appropriately.
Technical Aspect:

For the technical aspect, the proponents should be able to determine the

description of the business products, the location, type of building, store lay-out and

facilities and the supplies and furniture needed. The factors stated would help the

proponents discuss and solve the problem related to the technical aspect of the study.

According to Voice box, your location can make or break your business. This is

especially true for a private suite karaoke venue, which must integrate with nearby

businesses and offer appealing, comfortable spaces to attract the right guests. Plan

your location based on geography, layout and neighborhood.

Community – select a neighborhood with similar attractions, including restaurants, bars

and theaters, and do some demographic research to ensure your guests are your

neighbors.

Accessibility – How will your guests get to your venue? Is your location walkable? If

your guests are driving, make sure there’s access from larger roads and enough

parking.

Design the space for usability – Make sure you have adequate space for the number of

karaoke rooms you plan to build, incorporating varied sizes for large and small groups.

Including a bar. Get advice and design a space that attracts, not frustrates, your guests.
Management Aspect

For the management aspect, the proponents should be able to determine the

business organization is suited for the business, the number of employees is needed in

the business, the qualifications and requirements of the personnel, the duties and

responsibilities of the personnel, and the organizational structure to be adapted. The

factors stated would help the proponents discuss and solve the problem related to the

management aspect of the study.

ActivEscape start-up costs will include all equipment and furniture and fixtures

needed for the entertainment hub and acquisition of land and construction of building.

The fixed assets and equipment for the entertainment hub will be the largest

chunk of the start-up expenses. Start-up expenses will also include advertising. The two

methods will include social media and print advertisements.

Financial Aspect

For the financial aspect, the proponents should be able to determine the

capital idea in starting, the cost of running a day-to-day operations, the pre-operating

cost, the working capital, and the time the proposed business would be profitable. The

factors stated would help the proponents discuss and solve the problem related to the

financial aspect of the study.

Socio Economic Aspect

For the socio-economic aspect, the proponents should be able to determine

how the people and the government will benefit from the product. Also, the proponents

should be able to state the mission and vision and core values of the business.

Environmental Aspect

For the environmental aspect, the proponents should be able to determine

the environmental effects of the service business, the management of waste disposal

method.

Objectives of the Study

The objective of this study is to see the feasibility of starting this business using

the assumptions made under marketing, technical, management, financial, socio-

economic, and environmental aspects. If the feasibility study shows a likely failure, the

money can be saved for a better opportunity instead of wasting in developing business

that have a low chance for success.

Marketing Aspect:

1. To determine the strength and weaknesses in putting up the business

2. To know who are the target customers

3. To determine the services to be rendered

4. To analyze the existing competitors to see if the business will be able to break into

the market

5. To determine the promotions to be utilized

6. To estimate the cost of the services

7. To determine the supply and demand of the services

Technical Aspect:

1. To know the description of the business

2. To determine the main process and schedule of the business

3. To know the location, type of building, store lay-out and facilities of the business

4. To know the supplies and furniture needed

Management Aspect:

1. To know what business organization is suited for the business

2. To determine how many employees are needed in the business

3. To determine the qualifications and requirements of the personnel

4. To determine the duties and responsibilities of the personnel

5. To determine the organizational structure to be adapted

Financial Aspect:

1. To determine how much is the capital idea in starting

2. To estimate the costs of running a day-to-day operations

3. To know how much is the pre-operating cost

4. To determine how much would be the working capital

5. To determine when the proposed business will be profitable

Socio Economic Aspect

1. To determine how the people and the government will benefit from the product

2. To state the mission and vision and core values of the business.

Environmental Aspect

1. To determine the environmental effects of the service business

2. To know the management of waste disposal method.

Significance of the Study

The significance of the study presents the importance of the feasibility study

conducted by the researchers. It exhibits how beneficial and valuable this study is to

various audiences.

1.) The future beneficiaries would gain a new experience and the problem of the need

for a new place for entertainment and relaxation would be solved in case the study

would guarantee success.

2.) With the help of this study, entrepreneurs would be able to determine or settle on

whether it is feasible for them to install or to invest themselves on businesses similar to

the business at hand.

3.) Future researchers will benefit much from this study by using this study with the

information given as a basis and commend improvements for their own future studies.

Scope and Delimitation

This study will focus on marketing, technical, management, financial, socio-

economic and environmental aspect of the business. The basis of the study are the

consumers or the young adults ages 15-29 who are studying and working in the area of

Tanauan City, Batangas.

Research Methodology

The method used for the research is by giving away questionnaires, which

served as a survey for the population to answer, that will help the feasibility study to

gain the necessary data for conclusion. The survey was done around vicinities of

Tanauan like malls and nearby schools. The demand projection is calculated through

Collective Opinion or Sales force competitive method.

Review of Related Literature

According to Chow and Brian (2004), urban entertainment centers are perhaps

the largest and latest kind of commercial development to combine the retail and

entertainment industries in one location. These centers often combine new

entertainment, dining, and retail activities to provide a pleasurable experience to their

visitors. These centers have been rapidly spreading across the US and Canada,

bringing economic, social, environmental, and political and planning changes to the

communities. The impacts are analyzed within a template based on the community

objectives to characterize how entertainment centers affect the communities. The

analysis adopts the perspective of the host community, producing a comprehensive list

of local community impacts on the host community. The authors studied two locations of

entertainment centers; International Village Shopping Centre in Downtown Vancouver

and Riverport Sports and Entertainment Complex in Richmond. There is a location

difference in the two cases: International Village Centre is the urban example and

Riverport Complex is the suburban example. The location difference helps to explore a

broad range of potential community impacts. There were identified negative impacts of

entertainment centers on the host communities.

 According to CS. Tofte (2003), Urban Entertainment Destinations (UED) are a

new form of development comprised of unanchored retail projects that mix

entertainment venues and icon restaurants as a solution for enticing visitors back to the

city. The difference between these destinations and the traditional shopping mall is the

experience gained when leaving the destination. Tofte conducted a literature review and

case study analysis of nine UED's across the United States. Their investigation bought

forth the importance of six key strategies- Place making, Multi-Anchoring, Contextual

Links, Critical Mix & Mass, Programmability, and Branded Identity. An emphasis has

been made on incorporating the history and culture and the site's sense of place, two

place making components that help create a distinct destination. These strategies were

used as output of the investigation considered in developing a master plan for a new

UED in Rockford, Illinois.

Karaoke and Cinema Culture in the Philippines

It is hard, almost impossible to spend time in The Philippines and not encounter

karaoke. The Philippines is known for producing some of the greatest singers in the

world. I’m sure the almost universal love for singing and karaoke has a lot to do with

this.

Karaoke is undoubtedly an integral part of the Philippines culture. Filipinos are

brought up with a love of singing, it becomes a normal pastime of everyday life. If

visitors come to the house, they will all sing together, or if it’s a special occasion they

will enjoy singing as part of the celebrations. No matter where you are around the globe

you’ll find that in every home owned by a Filipino, you will find a karaoke system.
 According to One Music Philippines, Karaoke and the iconic KTV bars have

become an iconic addition to Filipino culture that it suddenly sprouted all over the

Philippines. You can be sure that even far-flung provinces with little to no cellular or

internet signal has at least one decrepit karaoke machine, which miraculously still

works. And since it’s a well-known fact that Filipinos are addicted to festivities, making

festivals out of harvests, good weather, down to even the most trivial of things, you can

be sure that that old, decrepit karaoke machine has had its fair share of use by

inebriated youth and old folks, trying to remain joyous, in spite of life’s hardships.

And if that’s the case in the idyllic and calmer provinces of the Philippines, what

more in the bustling cities, full of the stresses of the city and work life? Surely, people

would need to alleviate their troubles more often.

Many entertainment establishments in the Philippines joined the market with their

own versions of karaoke machines. The karaoke industry is a lucrative market as the

machines are used in gaming centers, bars, nightclubs, and karaoke establishments

across the country. Because of the popularity of karaoke machines in the Philippines,

many businesses made the move towards renting out their machines.

According to Michael Tan (2008), MANILA, Philippines there’s a difference

between liking movies and going to movies. Obviously, people who go to movies like

movies, but it doesn’t always work out that people who like movies go to movies.

Moreover, people who don’t actually like movies might still go watch them.

Most Filipinos don’t just like movies; we love them. But even in the era before

Betamax, VHS, VCD and DVD, there weren’t that many Filipinos who actually got to go
to movies on a regular basis. Poverty levels were just so high in some rural areas that a

movie house would have gone bankrupt.

But there still is a place for movie houses. The author asked around and was

surprised to find that many people do go to the theaters, which are now mostly inside

the malls. Some people even though they don’t really want to watch movies still goes to

movies and that concludes that going to the movies is, foremost, a social activity for

Filipinos.

We go to the movies as families, as a barkada (peer group) or as dating couples.

Spending for the movie and the snacks, or even lunch or dinner, is part of the courtship

process. Younger male informants said that watching a movie in a theater is more

romantic than taking in a DVD at home – it’s not just the larger-than-life screen but the

dark, and the cold, and the whole ambiance that allows one to be cozier, cuddlier. As

the author conducted the social experiment, he found out that mostly young adults are

fond of going out to have fun.

In the end though, it’s still economics at work. It’s an emerging middle class, with

more disposable income and higher standards for the movies, that holds hopes for a

renaissance of both the movie industry and movie houses.

Knowing the culture of karaoke and cinema which are some of the basic

multimedia activities that one can do, the proponents sees an opportunity of success

because all in all, based on studies and findings, only separate KTV and Cinema are

around and there is no Entertainment hub similar to the proposed business around the

area of the study and that gives a good opportunity for the business to succeed.