CHAPTER 2

Marketing Study

Marketing study is aimed to collect all the information that can be use in the business and in

the future of the business so that can determine if it will still increase five years from now.

This study will focus in the demand and supply it is the basic elements of the business and

also it will gather all the information in the survey questionnaire that answered by the

respondents.

A. Market Distribution

1. Area Geographical Coverage

Figure 1

Area Geographic Coverage

Sto. Tomas City is one of the provinces in Batangas. The city covers of 95.41 square

kilometers or 36.84 square miles which constitutes 3.06% of Batangas total area. Its

population as determined by the 2020 Census was 218,500. This represented 7.51% of

the total population of Batangas province, or 1,35% of the overall population of the

Calabarzon region.
2. Methods of Transportation and Existing Rate of Transportation

The establishment of bubble potato is along the way which is the customer can take

jeepney or tricycle the cost of their transportation is depend on how close or far are

them to the establishment.

3. Channel of Distribution and general trade practices

The bubble potato business is direct channels which is in Lifestyle Street in Sto.

Tomas city near in the San. Antonio. We will also create a sale promotion to attract

more consumer. We will also use the social media to promote our own product.

B. Demand

In this part we should know the need of the customer so that we can meet or achieve

their expectation.

1. Past consumption

The proponents that we use here is survey questionnaire that was distributed in

400 respondents from different barangay here in Sto. Tomas City, Batangas.

Table 2.1

Computation for Frequency of Agreement

Respondents

Once a month 12 12 3%

Twice a month 24 318 79.5%

Thrice a month 36 16 4%

Weekly 52 54 13.5%

Never 0 0 0%

Total: 400 100%

In this table, it shows the results of the survey that the researcher conducted with

the question of “how often do you eat potato?” the result is majority of twice a

month with 79.5% percentage while 3% for the once a month, 4% for the thrice a

month and last in 13.5% for the weekly.

Table 2.2

Computation of Market Acceptability

Particular No. of respondents Percentage

Yes 329 82%

No 72 18%

Total: 400 100%

researcher about the question of “If bubble potato will be available in Sto. Tomas

city are willing to buy it?” 329 of the respondents answered Yes with 82% while

72 of the respondents answered No with 18%. It tells that the majority in

respondents that they are willing to buy bubble potato.

Historical Demand

Table 2.3

Past Annual Demand

Year Market Population F.O.A (table Past annual

Acceptability 2.1) demand

2019 82% 211,852 24 416,924,736

2020 82% 218,500 24 430,008,000

2021 82% 225,055 24 442,908,240

2022 82% 231,607 24 455,802,576

2023 82% 238,761 24 469,881,648

Past annual Demand = Market Acceptability x population x FOA

Table 2.3 shows the historical demand of bubble potato for the 2019-2023 years.

The percentage of market acceptability is 82% it shows that most of the

respondents are willing to purchased bubble potato. The FOA shows how often
 they eat potato. Last is the past annual demand it shows in the table the

computation of past annual demand.

2. Major consumer of the products

Table 2.4

Demographic Profile

Characteristics Percentage

Age

10 years old below 0%

11-20 years old 45.75%

21-30 years old 9%

31-40 years old 42.25%

41-50 years old 3%

51 years old above 0%

Occupational Status

Employed 45%

Unemployed 1.25%

Student 50%

Self-Employed 3.75%
 Monthly allowance for

student/Unemployed for month

Below 1,000 pesos 23.75%

1,001-2,500 pesos 10.25%

2,501-4,000 pesos 15%

4,001-5,500 pesos 4.75%

5,501-7,000 pesos 0.25%

7,001 and above 0.5%

Monthly income for Employed/Self-

Employed

Below 10,000 pesos 34.5%

10,000-14,999 pesos 7%

15,000 – 19,999 pesos 0%

20,000-24,999 pesos 4%

25,000- 29,999 pesos 0%

30,000 and above 0%

Table 2.4 shows the demographic of every respondent, which includes age,

occupational status, monthly allowance and month income. In terms of age, 11-20

years old have 45.75%, 21-30 years old is 9%, 31-40 years old is 42.25% and last

is 41-50 years old is 3%. In terms of occupational status, it shows that Employed

is 45%, Unemployed is 1.25%, student is 50% and last is Self-Employed is 3.75%.

3. Projected consumption
 The number of consumers that willing to buy bubble potato in the present will be

presented. The bubble potato business must determine the demand will increased

in the future or year by year.

Table 2.5

Projected Annual Demand.

Year Market Population FOA Projected

Acceptability Annual

Demand

2024 82% 245,924 24 483,978,432

2025 82% 253,302 24 498,498,336

2026 82% 260,901 24 513,453,168

2027 82% 268,728 24 528,856,704

2028 82% 276,790 24 544,722,720

Projected Annual Demand = Market Acceptability x population x FOA

Table 2.5 represents the projected annual demand year 2024-2028.

C. Supply

1. Past Supply

Table 2.6

Past Annual Supply

Year Percentage of Population F.O. A (table Past Annual

(table 2.1)

2019 79.5% 211,852 24 404,213,616

2020 79.5% 218,500 24 416,898,000

2021 79.5% 225,055 24 429,404,940

2022 79.5% 231,607 24 441,906,156

2023 79.5% 238,761 24 455,555,988

Past Annual Demand = Percentage of purchased x population x FOA

In this table 2.6 it shows the computation past annual Upply in year of 2019-2023.

The percentage that uses is the percentage of willing to buy bubble potato.

Projected Supply

It is the quantity that will be produced in the future and will be purchased to the

consumer. For us to know who are willing to buy the product we use the survey

questionnaire.

Table 2.7

Projected Annual Supple

of purchase 2.1) Annual

(table 2.1) Supply

2024 79.5% 245,924 24 469,222,992

2025 79.5% 253,302 24 483,300,216

2026 79.5% 260,901 24 497,799,108

2027 79.5% 268,728 24 512,733,024

2028 79.5% 276,790 24 528,115,320

Projected Annual Demand= Percentage of purchase x population x FOA

The table 2.7 shows the computation of projected annual supply in the year of

2024-2028 years. Under the table shows the formula to compute the projected annual

supply.

Demand and Supply Analysis

In this analysis we must determine the demand of customer in the future demand year

2024-2028. The market gap will show the potential of the product will be available in

the market.

Table 2.8

Demand and Supply Gap

Year Projected Annual Projected Annual Demand and

2024 483,978,432 469,222,992 14,755,440

2025 498,498,336 483,300,216 15,198,120

2026 513,453,168 497,799,108 15,654,060

2027 528,856,704 512,733,024 16,123,680

2028 544,722,720 528,115,320 16,607,400

Demand and Supply Gap = Projected Annual Demand – Projected Annual Supply

The table 2.8 shows the computation of demand and supply gap in the year 2024-

2028. Under the table is the formula for demand and supply gap

Market share

The market share is important for us to know if we can compete in the market. we

must determine the market share of the business for us to manage the competitors in

the future.

Table 2.9

Market Share

Year Market Gap Current Demand Market share

2024 14,755,440 483,978,432 3.05%

2025 15,198,120 498,498,336 3.05%

2026 15,654,060 513,453,168 3.05%

2027 16,123,680 528,856,704 3.05%

Market share = market gap/current demand x 100

The table 2.9 shows the market share in year 2024-2028 with percentage of 3.055.

D. Competitors’ Marketing

Table 2.10

Competitors Marketing

Competitor name Product offer Price Promotional

Strategy

Potato lover’s Bubble potato Php80.00 Word of mouth

Mang Domeng Bubble potato Php70-90.00 Word of mouth

snacks shop

Antonio’s food Bubble Potato Php75.00 Social media

court

In table 2.10, it shows the different competitors that also sell bubble potato with

different prices and promotional strategy.