Department of Education

National Capital Region

SCHOOLS DIVISION OFFICE
MARIKINA CITY

ENTREPRENEURSHIP
Select the Best Product or Service
That Will Meet the Market Need
First Quarter-Module 5

Writer: Richelle C. Requinala, MBA, LPT

Cover Illustrator/ Writer: Sheila Mae A. Malesido, MBA, LPT

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 This module was designed and written with you in mind. It is here to help you
develop knowledge, skills, and attitudes in the course of Entrepreneurship. The
scope of this module permits it to be used in many different learning situations.
The language used recognizes the diverse vocabulary level of students. The
lessons are arranged to follow the standard sequence of the course. But the
order in which you read them can be changed to correspond with the textbook
you are now using.

The module is divided into two lessons, namely:

Lesson 5 – Select the best product or service that will meet the market need.

After going through this module, you are expected to:

1. Select the best product or service that will meet the market need
1.1. determine the life cycle of products and services
1.2. follow the steps in design thinking process in developing an
innovative product or service

Concept Map: Write and connect your ideas in developing an innovative product/
service in the bubble boxes below.

Growth

Design Thinking
Process

PRODUCT/SERVICE
Empathize

Product Life Cycle

Test

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 Lesson Select the Best Product or Service
4 That will Meet the Market Need

Entrepreneurial competencies, skills and knowledge on the concepts and principles

are vital for the success in a business venture. Knowing your market and external
and internal environment are the foundation of developing a product in mind that
would later become a successful entrepreneurial venture that would penetrate the
market niche.

Thus, new products and services are the lifeblood of all businesses. Investing in their
development is not an optional extra - it is crucial to business growth and
profitability.

But embarking on the development process is risky. It needs considerable planning

and organization.

This module will guide you on the key stages in the lifecycle of products and services,
so you know when the time is right for your business to start the development
process.

It will explain how a planned and phased development process will help you make
the wisest investment and budgeting decisions.

Young Probinsiyano Entrepreneur Shows the Way...

The Philippines is the 12th most populous country in the

world with over 90 million mouths to feed. Without a
doubt, getting into the food business remains a very
viable opportunity for entrepreneurs. But with so many
players, how does one stand out to be noticed? More
importantly, how can another food business make it big
time?

Edgar “Injap” J. Sia II answered these questions by conducting his research in a very
methodical manner. He looked at the 16 different regions in the Philippines and
recognized that each has a unique set of culinary traditions and eating habits. He
then analyzed and identified what type of food would have the most potential and
mass appeal. This was the ubiquitous barbecue (inasal in Ilonggo).

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With much perseverance, innovative thinking and a deep understanding of business,
Sia created Mang Inasal in Iloilo City in 2003. Today it has emerged as the country’s
sixth largest fast-food chain and its growth seems to be unstoppable.
That the boyish Sia would venture into business comes as no surprise. Born into a
family of Chinese-Filipino entrepreneurs, he was exposed to business from a very
young age.

While mulling over ideas, Sia was sure of one thing — whatever he came up with had
to have the potential to expand on a nationwide scale. After much consideration, he
eventually decided to go for the time-tested appeal of the Ilonggo’s comfort food,
chicken barbecue or inasal, served fast-food style. Mang Inasal fuses Filipino cuisine
with the fast food dine-in concept.

When Sia finally opened Mang Inasal for franchising, he concentrated his efforts on
his own backyard — Visayas and Mindanao — where inasal is most popular. Not
long afterwards, potential franchises from Luzon showed much interest, paving the
way for Mang Inasal to penetrate Metro Manila. Mang Inasal now counts 306
branches nationwide of which 28 are company-owned.

He says, “Mang Inasal is a truly Filipino-style fast food chain. Our concept, ambiance
and even the way our food is served on banana leaves is authentically Filipino.”
Despite the success of Mang Inasal, Sia recognizes there’s still a lot that can be done
to even make it bigger. He is constantly thinking up new ideas to maintain Mang
Inasal’s competitive edge, such as their recently launched delivery service.
Variations in the breakfast menu are being developed and he is also looking at giving
fast food dining a whole new feel with patented combo cups.

While he listens to his instinct, Sia is very calculated and strategic in his approach
to business. He firmly believes in hard work and perseverance and encourages
aspiring entrepreneurs to do the same.

He also urges them to believe in their capacity to make their dreams come true,
saying “Nothing is impossible with the right attitude. Do not be intimidated by
problems. Instead, look at them as opportunities for growth. I was lucky to acquire
the right entrepreneurial attitude as a young boy. You could say I developed the
right asal (behavior) for inasal,” he quips.

Guide Questions:

1. Why did Edgar “Injap” J. Sia II build the Mang Inasal business?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

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 2. How did he start the Mang Inasal business?
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
3. What do you think why the Mang Inasal success story of Edgar “Injap” J. Sia
II titled “Young Probinsiyano Entrepreneur shows the way”? Explain.
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________

The Lifecycle of Products and Services

There are five key stages in the lifecycle of any product or service.

Development - at this point your product or service is only an idea. You are investing
heavily in research and development.

Introduction - you launch your product or service. You are spending heavily on
marketing.

Growth - your product or service is establishing itself. You have few competitors;
sales are growing, and profit margins are good. Now's the time to work out how you
can reduce the costs of delivering the new product.

Maturity - sales growth is slowing or has even stopped. You've been able to reduce
production and marketing costs, but increased competition has driven down prices.
Now is likely to be the best time to invest in a new product.

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Decline - new and improved products or services are on the market and competition
is high. Sales fall and profit margins decline. Increased marketing will have little
impact on sales and won't be cost-effective unless new markets are identified.

Manage the Lifecycle

Identifying where products or services are in their lifecycle is central to your

profitability. Effective research into your markets and competitors will help you do
this.
You can extend the lifecycle of a product or service by investing in an
"extension strategy". You could:

• increase your promotional spending

• introduce minor innovations - perhaps by adding extra features or updating
the design
• seek new markets

But ultimately this only delays a product or service's decline.

Ideally, you should always have new products or services to introduce as

others decline so that at least one part of your range is showing a sales peak.

Developing your Ideas

There is a lot at stake when developing a new product or service. To minimize
risks and allocate investment and resources wisely, you should consider a number
of factors:

• Will your new product or service meet customers' specifications? For example,
consider its design, ease of use and performance benefits.
• How technologically feasible is the product or service? Can you meet the
design, resource and manufacturing requirements?
• Are you clear about what you hope to achieve with the new product or service?
Does it meet the strategy outlined in your business plan and play to your
business' strengths?

The clearer you are about your plans, the better you can analyze the risks
involved.

The following tips may also be helpful:

• consult members of your team about your development plans - they may
contribute insights that you have overlooked
• seek the views of suppliers and other business associates - their specialist
expertise could be invaluable
• test lots of ideas at the start of a project - it costs relatively little to assess
which are most promising, but make sure you stop work on ideas that don't
meet your criteria before committing a lot of time and resources

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 • ask your best customers what they think of your plans
• consider the regulatory framework within which your new product or service
will operate
• don't overlook the environmental impact of your plans
• look beyond a new product or service's immediate potential and consider the
longer term

Match Products and Services to Market Needs

New products and services have to offer benefits that meet your customers'
needs. You need to discover what these are.

Market research, using techniques such as surveys and focus groups, will
help you do this. Remember that although the end user of your product or service
might be your most important customer, you may have to take the needs of other
parties into account. For example, if you were planning a new DIY product, you would
need to consider how retailers would stock it as well as how it would benefit
professional decorators. If you are creating a toy, you should consider what parents
as well as children will think of it.

Your Competition

Not only must you meet your customers' needs, but you also have to do so in
a way that is better than the alternatives offered by the competition.

Your new product or service needs a unique selling proposition - a feature or

property that makes it stand out in the marketplace. Before entering the market, you
need to determine:

• how customers’ needs are currently met

• why customers would choose your product or service rather than the
competition's, both now and in the future
• what risks you are prepared to take to launch your product or service into this
market

Pricing Your Proposed Service or Product

Establishing a pricing strategy for a new product or service is an important
part of the development process. You should consider pricing the moment you decide
to take an idea forward as it will determine how much you can afford to invest in the
project.

You will need to take the following factors into account:

• The benefits - or value - to the customer of your product or service compared

with what the competition has to offer. Will the price be one that customers
are prepared to pay?
• Whether or not you are first to market. Is your product or service revolutionary
or are you following a market trend?

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 • The selling channels you want to use, which will affect your promotional
spending and distribution costs.
• The speed with which you want to establish your product or service.
• The expected lifecycle of your product or service.
• Whether you are covering your costs.

Strategic pricing can be used to drive sales and regulate demand.

The Project Development Process

An effective development process for products or services is divided into a
number of key stages:

1. Empathize
2. Define
3. Ideate
4. Prototype
5. Test
6. Implement

Design thinking is a process for creative problem solving. The following are
the stages for design thinking process:

Step 1: Empathize

The first step of the design thinking process provides an opportunity to set
our assumptions aside and immerse ourselves in the context of the problem we’re

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attempting to remedy. The particular problem determines who might find the
solution useful as well as which experts might help shed light on ways the issue is
currently being solved.

Several approaches can help draw out the information needed to paint a full
picture of the problem’s context. Conducting face-to-face interviews to learn about
how people are currently solving the same or similar issues is one of the most
common. Asking someone to tell a story about the last time they experienced the
problem you’re investigating provides a rich description that highlights details you
might not have otherwise considered.

Tools like empathy maps can be a great way to consolidate all of the valuable
information gleaned from interviews.
Tools like empathy maps can be a great way to consolidate all of the valuable
information gleaned from interviews. Empathy maps capture what people do, say,
think, and feel in the context of the problem.

Say captures what people say in interviews or during observations of what

they do in the context of the problem you’re trying to solve. Pay particular attention
to when people mention frustrations or comments that indicate their motivations.
Pulling direct quotes from interviews is ideal for demonstrating how people feel in
their own words.

Capturing what people think may require you to infer based on unspoken
details like body language. As you immerse yourself in the information gathered from
interviews, think about how the person you interviewed might feel when performing
a particular task. What might be frustrating them? If they don’t share their
frustrations, consider why they might withhold that information.

Do is fairly straightforward. As you observe someone experiencing the problem

you’re trying to solve, take note of not only what they do, but how they do it. Are they
in a hurry? Do they seem confused? Asking why someone takes a particular action
can provide insight into their thought process as well.

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 Feel focuses on the emotional state. What adjectives describe each behavior?
Do they abandon a particular task because it’s too time-consuming? The Neilsen
Norman Group suggests representing feelings with an adjective plus a short sentence
for context. (ex. Impatient: pages load too slowly)

Step 2: Define

In this step, we combine and analyze the research to draw insights from the
data that will help define our problem statement and guide ideation in step three.
The resulting problem statement should be captured in human-centered terms
rather than focused on business goals. For example, instead of setting a goal to
increase signups by 5%, a human-centered target would be to help busy moms
provide healthy food for their families.

Based on the frustrations, you observed or heard about come up with

questions for how you might solve them. One standard format is, to begin with the
phrase “how might I/we” followed by a particular pain point. For example, how might
we make it easier for moms to quickly pick up groceries when they have sleeping kids
in the car. As you explore the empathy data, focus on identifying patterns and
problems across a diverse group of people. Gathering information on how people are
currently solving the problem provides clues on how to give a more innovative
solution and learning about frustrations with those solutions serves to identify
unmet needs.

Step 3: Ideate

Now that the problem is apparent, it’s time to brainstorm ways to address
those unmet needs. The ideation stage marks the transition from identifying
problems to exploring solutions.

When ideating, challenge yourself to go beyond minor adjustments. Prototypes

provide a way to investigate riskier ideas cost-effectively, and the testing phase
provides more confidence that the risk is worth pursuing.

We prioritize breadth over depth as we look for a diverse range of ideas to

prototype and test.
The ideation stage flows between idea generation and evaluation, but it’s
important that each process remains separate from each other. When it’s time to
generate ideas, do so quickly without focusing on the quality or feasibility of the idea
for now. You never know whether infeasible ideas can inspire someone else. Consider
activities like sketching during the ideation process. It’s not necessary to be a skilled
artist. As long as you can draw boxes, arrows, and stick figures, you can
communicate an idea through sketching.

After ideas are collected, move into the evaluation phase.

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Step 4: Prototype

Prototyping allows you to get ideas into physical form to gain feedback from
the people they are intended to serve. The goal is to start with a low fidelity version
of the intended solution and improve it over time based on feedback. Beginning with
a paper prototype can help you learn quickly with minimal effort. At this stage, it’s
often a good idea to work through the prototype internally to ensure that any
significant gaps are identified before the prototype is tested with its intended
audience in step five.

The prototype should be a realistic representation of the solution that allows

you to gain an understanding of what works and doesn’t work. It is changed and
updated based on feedback from the Test phase in an iterative cycle. The low-cost,
lightweight nature of prototyping also allows you to develop multiple solutions to test
in tandem to identify the best possible solution for meeting those unmet user needs.

Step 5: Test

Now’s the time to revisit the problem statement and make sure the end
solution is meeting those needs and resolving frustrations. By testing, we are seeking
to learn if we have made an impact on the way someone feels about the problem at
hand. As feedback comes in, prototypes are iterated upon and then reintroduced to
people for more feedback. Adopting an open mind is essential in this stage.

“Prototype as if you know you’re right, but test as if you know you’re wrong.”

That can mean being prepared to start over if the prototyped solution does not
adequately address the problem. Testing may even reveal the issue was framed
incorrectly from the beginning.

Creating A Project Team

Every potential new product or service requires a dedicated development team.

In creating your team, you need to include people with a variety of skills. For
example, as well as a creative ideas person you may also need a technical expert, a
marketing specialist, someone who can source components and someone who
understands the supply-chain difficulties you could encounter.
All team members should understand your business' objectives and be
committed to them.
There are many forms of effective team working and the right one for you
will depend on your business' needs. For example, team members might:

• work as a unit dedicated to one project, reporting to a project manager

• work exclusively on one project but remain in separate departments reporting
to department heads who are under the project manager
• work on several projects at once with both a department head and project
manager to monitor progress

Teams need someone in a project management role to lead, co-ordinate and

motivate the team.

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Investment and Cost Control
Developing new products and services is an inherently risky process. You
must plan any investment carefully and strictly control your costs.

You need to:

• factor any future investment in products and services into your strategic
business plan
• plan exactly where this investment will be directed
• justify the expenditure on every project
• manage your costs
Before making investment decisions, consider how much your business stands to
gain from a completed product or service. Weigh this against the risks you face.

Phasing New Product Development

One way to minimize your risks is to phase investments in projects. By

reviewing a project at the end of each phase or stage of development, you can identify
products or services that are unlikely to be successful before resources are wasted.
If the product or service fails to meet established criteria, the project is ditched. If it
meets them, resources sufficient to enable it to reach a next, predetermined, stage
are allocated.

Arrange in order the following product life cycle and design thinking process as
1 (one) as the first. Write your answer on the space provided before the number.

A. Product Life Cycle

_________1. Maturity
_________2. Growth
_________3. Development
_________4. Decline
_________5. Introduction

B. Design Thinking Process

_________1. Prototype
_________2. Empathize
_________3. Test
_________4. Ideate
_________5. Implement
_________6. Define

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Answer the following questions briefly. Write your answer on the spaces provided.

1. Briefly discuss the importance of development stage in the product life cycle.

___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

2. What is the importance of empathize, define, and ideate in the process of

design thinking?

___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
3. How is the design thinking process can be applied and integrated to the
product life cycle?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

Your output will be rated by using the scoring rubric below:

Areas of Unsatisfactory Needs Satisfactory Outstanding

Assessment Improvement
(2) (3) (4) (5)
Ideas and Content is Major points Major points Major points
Content incomplete or are addressed are stated are stated
not clear but not well clearly and
supported are well
supported

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Perform the following:

A. Search at least (2) two entrepreneur success stories related to your track/
strand and find out how they came up with their idea of their successful
product or business by following the steps in design thinking below. Write
your answer in the separate sheet of paper.

Entrepreneur’s Name _____________________________________________________

Business/ Product Developed _____________________________________________

Step 1 : Empathize _______________________________________________________

Step 2: Define ___________________________________________________________

Step 3: Ideate ____________________________________________________________

Step 4: Prototype __________________________________________________________

Step 5: Test _______________________________________________________________

Step 6: Implement _________________________________________________________

Choose the best answer by writing the letter on the space provided before each
number.
________1. It refers to the stage of the product life cycle wherein the sales growth is
slowing or has even stopped.
a. Development b. Maturity c. Growth d. Introduction

________2. The stage of product life cycle wherein you are spending heavily on
marketing.
a. Development b. Decline c. Growth d. Introduction

_________3. A stage of product life cycle wherein the sales and profit is falling.
a. Development b. Decline c. Growth d. Introduction

_________4. It refers to the stage of product life cycle wherein your product or service
is just an idea.
a. Development b. Decline c. Growth d. Introduction

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__________5. This refers to the product life cycle wherein your product or service is
establishing itself.
a. Development b. Decline c. Growth d. Introduction

__________6. A step in design thinking process that combines and analyze the
research to draw insights from the data
a. Empathize b. Define c. Ideate d. Prototype

__________7. 60% of the residents in Barangay Matayog are children. But Rico, one
of the residents in the said barangay noticed that most of the children
are malnourished so what he did was he asked some of the parents what
could be the type of food for their children to eat with nutrients. What
is the stage of product life cycle is Rico in?

a. Development b. Introduction c. Growth d. Maturity

__________8. Based on the question in number 7, can you determine what is the
process of design thinking?

a. Empathize b. Define c. Ideate d. Prototype

__________9. Based on the case in number 7, which of the following is the best
situation if it is already in the ideation process of design thinking?

a. Rico interviewed the parents in his community on what problems

they are facing with their children.
b. Rico and his (3) three friends suggested their product concepts to
solve the problem.
c. Rico and his friends made a decision to come up with a candy with
malunggay extract, so they made the candy and wrapped it.
d. Since Rico had made the candy, they decided to conduct a free taste
if the children’s preference had been met.

__________10. Based on the choices in number 9, what could be the best situation is
in step 5: Ideation in the process of design thinking?

Note: This activity will be the preparation for the business plan and its
implementation.

1. Group yourselves and assign a leader (consult your subject teacher on the
number of groups)
2. Brainstorm with your groupmates to come up with an innovative product or
service concept.
3. Propose at least (3) three innovative business concepts, a product or a service
based on the track or strand you are in by following the first three steps in
design thinking. Discuss and explain by following the format below in a

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 separate sheet of paper. Your teacher will be the one to approve and validate
your business concept to be used for the next lesson.

(Sample format)
Malunggay Candy
Proposal No. 1: ____________________________________________________________

Step 1: Empathize ________________________________________________________

Step 2: Define _____________________________________________________________

Step 3: Ideate _____________________________________________________________

Book

Go, Josiah. Fundamentals of Marketing in the Philippine Setting, 2010, Josiah and
Carolina Go Foundation, Inc.

Online

https://www.infoentrepreneurs.org/en/guides/develop-new-products-and-
services/

https://voltagecontrol.com/blog/5-steps-of-the-design-thinking-process-a-step-by-
step-guide/

https://www.bing.com/images/search?view=detailV2&ccid=EPzSmGMl&id=3D2D7
17F3D21003260026E44023148293774F85E&thid=OIP.EPzSmGMlO59F-
tYJhvkAWgHaEL&mediaurl=https%3a%2f%2ffanyv88.com%3a443%2fhttps%2fupload.wikimedia.org%2fwikipedia%2
fcommons%2fthumb%2fd%2fd0%2fMang_Inasal.svg%2f1200px-
Mang_Inasal.svg.png&exph=677&expw=1200&q=mang+inasal+&simid=608038357
193197437&ck=A4FAC26F03F0FC7CEBAC7E8AE0F4A4BB&selectedIndex=0&qft=
+filterui%3alicense-L2_L3_L5_L6&FORM=IRPRST&ajaxhist=0

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 Development Team of the Module

Writer: Sheila Mae A. Malesido MBA, LPT (SEHS)

Richelle C. Requinala MBA, LPT (CIS)
Internal Reviewer: Emily G. Santos ( Public Schools District Supervisor)
External Reviewer: Kervin Rey G. Torente, Ateneo De Manila University
Cover Illustrator/ Layout Artist: Sheila Mae A. Malesido MBA, LPT (SEHS)

Management Team:
Sheryll T. Gayola
Assistant Schools Division Superintendent
OIC, Office of the Schools Division Superintendent

Elisa O. Cerveza
Chief, Curriculum Implementation Division
OIC, Office of the Assistant Schools Division Superintendent

Emily G. Santos
Public Schools District Supervisor

Ivy Coney A. Gamatero

EPS– Learning Resource Management and Development System

For inquiries or feedback, please write or call:

Schools Division Office- Marikina City

Email Address: [email protected]

191 Shoe Ave., Sta. Elena, Marikina City, 1800, Philippines

Telefax: (02) 682-2472 / 682-3989