Chapter 2

MARKET STUDY
This chapter focuses on the methodology, demand and
supply analysis, the quantity demanded and supplied for the
past years as well as the projected ones. Included thereof
is the product such as the brand, packaging, pricing, and
quality of advertisement.
2.1 Objectives of the Study
1. To determine the demand and supply quantities of the
product;
2. To

know

the

competitive

advantage

from

competitors; and
3. Furnish a higher degree of customer satisfaction towards
the product
2.2 Methodology
In order to obtain information from personal views of
the consumers and fully understand the demand and supply of
such product, the proponents conducted a survey within the
area (Catbalogan City). The distribution of questionnaires
will

serve

as

the

reference

in

making

feasible

and

progressive business such as this. Growth rate of supply

and demand for the past two years will be used to determine
the quantity of supply and demand of the proposed product.
2.3 Demand
2.3.1 Consumption for the past two years

Year
Total Demand
2013
42,152 pieces per 250ml
2014
50,580 pieces per 250ml
Percentage of growth rate: 20%
*Based on the survey
Consumers of the Product/Service

2.3.2
Major

The major consumers of Coconut Vinegar are the very

people of Catbalogan City. Those who are health conscious
and people patronizing locally made product such as this
vinegar.

2.3.3 Projected Demand

Year

Projected Demand

2017

72,836 pieces per 250ml

2016

60,696 pieces per 250ml

In the year the 2016, 60,696 number of pieces or units

is projected .This distance from the 2014 actual demand by
multiplying it to the growth rate, while in the year 2017
the 72,836 number of pieces projected based on the or units
the

projection of prior year.

2.4 Supply
The supply is the quantity of the product or service
produced

by

the

producer

or

the

manufacturing

for

the

purpose of selling it to the market. The quantities of

similar products were sold to the buyers or consumers in
the past two years, 2013 and 2014.

Year

Total Supply

2014
2013

20,184 pieces per 250ml

18,175 pieces per 250ml

Percentage of growth rate:11%

*Based on the survey
2.4.1 Total Domestic Supply for the Past 2 Years

Based on the survey, the quantity supplied from the

producer to the identified market of similar products in the
year 2013 were 18,175 piece while in the year 2014 were
20,184 pieces.
2.4.2 Projected Supply
Year

Projected Supply

2016

22,404 pieces per 250ml

2017

24,869 pieces per 250ml

2.5
Demand

and Supply Analysis

Projecting the quantity demanded of the consumers and
the

quantity

supplied

of

the

producers

is

of

great

importance for the said data would be the basis in terms of

what amount or quantity should be produced daily, monthly,
quarterly, and annually. With the help of the percentage
growth

rate

projected

the

for

the

total

past

demand

years,
and

the

supply

years.
2.5.1 Table of Demand and Supply

researchers
for

the

had

incoming

Year

Demand

Supply

Difference

%
Target
Market
Share

2017

72,836

24,869

47,967

40%

2016

60,696

22,404

38,292

40%

Total Target
Market Share
19,187 pcs
per 250ml
15,317 pcs
per 250ml

The total target market is the concern of this study,

the target quantity demanded in the year 2016, is 15,317
pieces and in the year 2017, 62,160 pieces. These product
quantities Subject to produce by the proponents of this
study in the next two years.
2.6 Projected Sales/ Market Share
Year
2017
2016

Daily Sales

Monthly
Sales

Quarterly
Sales

Annual Sales

923 pcs per

250ml
737 pcs per
250ml

23,984 pcs
per 250ml
19,147 pcs
per 250ml

95,935 pcs
per 250ml
76,585 pcs
per 250ml

287,805 pcs
per 250ml
229,755 pcs
per 250ml

The selling price per unit/piece of the proposed product

is P 15 and a total of 312 days of operation yearly which at
the same time having total target market share of 34,504 pcs
per 250ml.Its daily sales for the year 2017 would be 923
pieces per 250ml or 23,934 pieces per 250ml monthly and
95,935

pieces

per

250ml

quarterly

in

which

total

of

287,805 pieces per 250ml sales for the said year. Since the
total target market share

was projected to increase during

2016, then its daily, monthly, quarterly, and annual sales

is therefore also expected to have 737 pieces per 250ml

daily sales or 19,147 pieces per 250ml sales monthly and
76,585 pieces per 250ml quarterly with a total of 229,755
pieces per 250ml sales yearly.
2.7 Marketing Strategies/Programs
In terms of Produce Marketing, we will be utilizing our
facebook and other social network accounts to accommodate
and display our products to online markets. We also sponsor
event in our all and engage in promotional activity and
encourage, stores and supermarkets for display.

2.7.1.1 Product Category

The product such as coconut vinegar is suitable for
food

preservation and is chosen by most chefs as flavor

for a favorite cuisine.

2.7.1.2 Brand
Natural Fermented Vinegar under the company name HRMNK
Company.

2.7.1.3 Packaging
Plastic Pouch sealed
2.7.2 Pricing
15 pesos per 250ml- per pouch
2.7.3 Place of Distribution
Catbalogan City
2.7.4 Promotions/Advertising
The researchers are aiming for a mass attraction of the
product. The social media such as facebook, instagram (IG),
twitter and identify. would be a helpful marketing strategy
tool in promoting coconut vinegar. Another method is through
flyers,

posters,

and

leaflets

distributed

within

business sections of Catbalogan City.

A FEASIBILITY STUDY ON THE ESTABLISHMENT

OF HRMNK FERMENTING COMPANY
CATBALOGAN CITY

Presented to;
The Faculty of the College of Business and Management
SAMAR COLLEGE
Catbalogan City

In Partial Fulfillment

the

Of the Requirement for the Degree

BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION
Presented by;
NELIA H. NAJERA
HANNAH C.SOLAYAO
RIZA LYN C. BALASBAS
MARIBETH A. ABADIANO
MARK ALVIN T. GILHANG