CHAPTER III

MARKETING ASPECT
Marketing is a very important aspect in business since it contributes greatly to the
success of the organization. Production and distribution depend largely on marketing. It
is the process of introducing and promoting the product or service into the market and
encourages sales from the buying public. Since the goal of marketing is to make the
product or service widely known and recognized to the market, marketers must be
creative in their marketing activities.
Marketing aspect is one of the most useful chapters in the feasibility study.
Without marketing, sales may crash and companies may have to close. The success of
the business depends on how the product is introduced to the potential market. The
fact that if the proposed product will be accepted by the target market is then a
determining factor that this project can be implementable.
TARGET MARKET
This is a market segment at which a marketing campaign is focused. This is a
group of customers that the business has decided to aim its marketing efforts and
ultimately deliver its product.
The target market of the proposed production of the gumamela shake is the total
students of all universities located in downtown of Cebu City. The proponents decided
to choose this target market because these students have the accessibility and
convenience to the location of the business.

POPULATION OF TARGET MARKET AND RESPONDENTS

One factor that is used in order to know the market feasibility of the proposed
product is the population of the target market. Since the proponents decided that the
students in the universities located in downtown of Cebu as its target market, the 20132014 total enrollees of randomly picked universities which are University of San JoseRecoletos, University of San Carlos and University of Visayas were obtained. The table
below shows the population of the randomly picked universities and its respective
sample.
Table 1
Population of Respondents per University
N = 62, 514
University

Population (N)

Sample (n)

Percentage

USJ-R

18,316

165

42%

USC- Main

18,275

116

29%

UV

25,923

117

29%

Total

62, 514

398

100%

Considering the size of the population, the proponents had obtained a sample size of
398 using the Slovin Formula as illustrated below.

Where:
n = sample size
N= total population
e = margin of error at 5%

To apply this formula to the above data, the variables were substituted with, thus:

n=398
The respective sample size of each barangay is obtained by dividing each of the
universitys population to the total population of the three universities. The quotient is
then multiplied to the total sample size of 398. Take for example as to University of San
Jose- Recoletos.
124796 x 398
62514
n= 165

AGE OF THE RESPONDENTS

This information is necessary in order to categorize those age brackets of the target
market that would possibly accept the proposed product.
Table 2
Age of the respondents
n=398
Age Range

Frequency

15-18

196

49%

19-22

181

45%

23-26

15

4%

27 and above

2%

Total

398

100%

The above table shows that most of the respondents are ages 15 to 18. This can
easily be seen since it got the highest percentage which is 49. The age bracket yields
the highest percentage since it is believed that it is in this ages where a college student
starts to try new things.

Gender of the Respondents

To be able to acquire knowledge on the ratio of the male over the female
respondents on the project, a respondent was asked on his/her gender.

Table 3
Gender of the respondents
n= 398

Gender

Frequency

Female

252

63%

Male

146

37%

Total

398

100%

The above table shows that there is a more number of female respondents,
representing 63% of the sample size compared to the male respondents which only
represents 37%.

RESPONDENTS WHO DRINK SHAKE

This is an important question to be asked in order to reasonably estimate the
total scope of those who consumes shake.

Table 4
Respondents who drink shake
n=398

Response
Those who drink shake
Those who do not drink

No.

shake
Total

%
393
5

99%
1%

398

100%

The above table shows that most of the respondents drink shake which is
represented by 99% of the population.

HOW OFTEN THE RESPONDENTS DRINK SHAKE

This is a follow- up to the question above. This information is significant as to
how frequent the respondents consume shake.

Table 5
How often the respondents drink shake
n=391

Response
Everyday
Once a week
Once a month
Other
Total

No.
14
155
143
79
391

%
3%
38%
35%
19%
100%

The data above noticeably reveals that the majority of the respondents consume
on a weekly basis. It can be seen that the respondents drink shake depending on their
own discretion due to personal reasons.

KIND OF SHAKE THAT RESPONDENTS HAVE TRIED

This will give hint to the proponents in knowing their existing competitor as to
what kind of shake most people consume.

Table 6
Kinds of shake that respondents have tried
n=398
Kind
Fruit
Vegetable
Other
Total

No.
348
33
12
393

%
89%
8%
3%
100%

The above table shows that most respondents have tried fruit shake which is
represented by 89%. This data shows that most of the respondents think and feel that
fruit shakes taste better than the rest choices above.

WHERE THE RESPONDENTS MOSTLY BUY SHAKE

In determining the possible areas where the product will be distributed and made
accessible to the buyers were asked. The table below presents the locations where the
respondents prefer to buy the product.

Table 7
Where the respondents mostly buy shakes
n=398
Location
Mall
Canteen
Carenderia/sidewalk
Other
Total

No.
226
81
75
11
393

%
58%
21%
19%
2%
100%

The table presents the responses identifying the mall as the location where the
respondents mostly buy the product. The mall ranked first among the others because it

is where most of the business enterprises are situated. Also, there are many malls
situated nearby schools of the respondents.

RESPONDENTS WHO ARE AWARE THAT GUMAMELA IS EDIBLE

The responses of the respondents as to their awareness of this fact are a useful
data in determining whether this information is already a common fact or a justly
discovered knowledge.

Table 8
Respondents who are aware that gumamela is edible
n=398
Response
Yes
No
Total

No.
143
255
398

%
36%
64%
100%

The table above reflects that most of the respondents do not know that
gumamela flower is edible.

RESPONDENTS WHO ARE AWARE THAT GUMAMELA FLOWER HAS BENEFITS

This will give an indication to the proponents whether the benefits of a gumamela
flower is a common fact or not.

Table 9
Respondents who are aware of the benefits of gumamela flower
n=398
Response

No.

Those who are aware of the

140

35%

258

65%

398

100%

benefits
Those who are not aware of
the benefits
Total

The above data indicates that most of the respondents are not aware of the
benefits of a gumamela flower due to fact that they also do not know that it is edible.

RESPONDENTS WHO HAVE TRIED EATING A GUMEMELA FLOWER

This is a follow-up to the above question that would help the proponents
determine as to how the respondents would accept the product stating that gumamela
flower is edible.
Table 10
Respondents who have tried eating a gumamela flower
n=398
Response
Yes
No
Total

No.
38
360
398

%
10%
90%
100%

Based on the projected data above, only few of the respondents have tried eating
a gumamela flower for the reason that few of them know that gumamela can be eaten.

RESPONDENTS WHO ARE WILLING TO BUY THE GUMAMELA SHAKE

This will help the proponents to have an idea whether the respondents will
patronize the product and can be saleable to the market once made available.

Table 11
Respondents who are willing to buy the gumamela shake
n=398
Response
Yes
No
Total

No.
291
107
398

%
73%
27%
100%

Based on the gathered data, most of the respondents are willing to buy the
product if made available. This information indicates that the proposed product will
reasonably have a share in the market because 73% are willing to buy it.

PREFERRED PRICEs FOR 250ML

In order to help the proponents determine the prices that the buyers are willing to
buy for the proposed product, preferred prices were asked. The table below presents
the favoured prices of the respondents based on the volume of the product which is in
ML.
Table 11
Preferred Prices for 250 ML
n=395
Response
P 25 30
P 31 35
Total

No.
368
27
395

%
93%
7%
100%

PREFERRED PRICES FOR 350 ML

Table 12
PREFERRED PRICES FOR 350 ML
n=387
Response
P 36 45
P 46 55
Total

No.
338
49
387

%
87%
13%
100%

PREFERRED PRICE FOR 500 ML

Table 13
Preferred price for 500 ML
n=387
Response
P 56 60
P 61 - 65
Total

No.
350
37
387

%
90%
10%
100%

The data above noticeably reveals that most of the respondents are willing to buy
the product at different volume. In table 1 , it shows that the respondents prefer
to buy a 250 mL gumamela shake at a price ranging from P25-P30 representing
the 93% of the respondents. In table 2, it clearly presents that a 350 ml
gumamela shake is preffered to buy at the prices ranging from P36-P45
representing the 87% of the respondents. In table 3, it can be seen that most of
the respondents desire to buy a 500 ml gumamela shake at price ranging from
P36-P45 representing the 90% respondents.
Although largely of the respondents opt to buy a gumamela shake on a
bracket price which is lower, the proponents believe that the proposed product
can still be sold at a price higher from the chosen bracket because some of the
target markets has chosen the bracket which has higher price.
PROJECTED DEMAND

This refers to the estimated quantity of a product which potentially would

be bought by the consumers at a certain time for a given price. Projection of the
demand is an important factor to determine the possible profit that the proposed
business could obtain upon implementing this project. Projected growth factor is
computed through the use of the past five-year population of students enrolled in
universities located at downtown Cebu. A table below is being presented to easily
show the average increase of the population per year.
PROJECTED ANNUAL DEMAND
To determine the potential market of the gumamela shake for the years 214-2015, the study of demand projections for a proposed business is essential.
(other paragraph based on the computed result)
(table)
MARKET SHARE
Market share is said to be a key indicator of market competitivenessthat is,
how well a firm is doing against its competitors. It shows a part of the population that
will avail the proposed product. It is also the percentage of the markets total sales of a
product during a specified time period. This measure can be use to in order to judge
the effectiveness of the marketing campaigns and also gives a general idea of the
standing of the proposed product to its market and to its competitors. Thus,
conservative market share of the proposed project is presented in the table below.
Table No.

Market Share

Projected
YEAR

Demand
Glass

Production
Desired Market Share
%

Glass

Capacity

Market Share
Glass

2014
2015
2016
2017
2018

Table No. shows that for the next five years the market shares percentage of the
proposed product is __________. The formula to arrived at the prospective share
percentage is:

Where:
MS = Market Share
PC = Production Capacity
PD = Projected Demand
Example:

(Findings)

TERMS OF PAYMENT
The determination of the terms of payment for the proposed business is
necessary to plan the cash outflows and inflows. Determining the expected outflows
and inflows helps the management to effectively and efficiently use its cash resources.
Accordingly, the proposed product would be paid through cash bases. As to the
case of the production of gumamela shake, the moment the product is transferred to the
customer, sales is already recognized.

MODE OF DELIVERY
A mode of delivery is defined as the way how the product is physically transferred
from the seller to the buyer. The finished product is transferred to the customers by the
time they purchase the gumamela shake.
DISTRIBUTION CHANNEL
A channel of distribution or trade channel is defined as the path or route along
which goods move from producers or manufacturers to ultimate consumers or industrial

users. In other words, it is a distribution network through which producer puts his
products in the market and passes it to the actual user. It comprises all of the business
and people involve in the physical movement and transfer of the ownership of goods
and services from producer to consumers. The longer the distribution channel the less
the profit a product manufacturer might get from the sale.
As in the case of the proposed business, the gumamela shake, from the stall or
cart , will then be directly delivered to the customers upon ordering. The one who is in
charge for the selling is responsible for the distribution of the products to the customers.
Based from the survey questionnaire answers, the respondents response as to where
they mostly buy shakes is in the mall so the proponents decided to situate their product
in malls.
PRICING POLICY
Pricing is a critical factor in the marketing aspect since it will determine the
expected turnover that the proponents will generate from the distribution of the
proposed product. Moreover, the loss or decline of sales can be directly attriibuted to
pricing the product too high or too low. In order to prevent such from happening, a
pricing policy is regulated. This policy will serve as guide in setting the right price of the
proposed product.
One of the considerations in pricing policy is the consumers willingness to pay.
Based on the results gathered from the instrument, majority of the respondents are
willing to pay Php 25.00 to Php 30.00, Php 36.00 to Php 45.00 , Php 56.00 to Php 60.00
for a 250 ml, 350 ml, 500 ml glass og the gumamela shake , respectively.

MARKETING STRATEGIES
The success of the business would have a greater chance by developing a
market strategy. In developing a market strategy, the business should know on how to
sell the gumamela shake to its target customer and how to rise above the crowd of
competitors demanding for attention. To determine whether the proposed product will
earn a reasonable profit, the business must go through an extensive planning that
involves development and implementation of success strategies in order to meet the
goals and objectives of the business.

PROMOTION AND ADVERTISING

Promotion is a business activity which communicates the product or service to
the consumers. This provides information to the people that will attract their attention to
buy the product or service in preference over others. One of the benefits of promotion
advertising is that it gives the business an opportunity to communicate a message to a
large audience at one time reducing the cost per contact. However, advertising can also
be performed at a smaller and more specialized scale to target a specific market.
Successful promotion increases sales which will

spread over a larger output the

advertising and other costs.

The proponents of the study decided to promote the product through activities
which costs less. They planned to have tarpaulins that will be placed near its production
factory and to places which will be easily be seen by the public. A distribution 300 flyers

containing the benefits of the product will also be done. Sample products of 50 bottles
will also be distributed to the malls in downtown area of Cebu City.
LABELING
Labeling is an essential part when there is a new product that is being
introduced. It is used to guarantee that costumers have access to complete information
on the content and the composition of the product, in order to protect their health and
their interests. Also, in order for the costumers to know the information about the
product, it is in the label where we put the products name.
The proponents suggested that the product will carry a name of Gumamela
Shake, which is an elaborate name that can simply be identified by the consumers that
the product is made up of Gumamela.
PACKAGING AND ITS DESIGN
Packaging is the technology of enclosing or protecting products for distribution,
storage, sale, and use. Packaging improves handling and protection. When it comes to
food packaging, convenience is one of the key factors. Packaging serves as a primary
identification of the product against existing competitors. It also ultimately improves the
products marketability. The external packaging design of the proposed product is
presented in the next figure.

Figure 1:
Secondary packaging of Gumamela Shake